MIRA INFORM REPORT

 

 

Report Date :

27.06.2013

 

IDENTIFICATION DETAILS

 

Name :

ESSAR POWER (JHARKHAND) LIMITED

 

 

Registered Office :

Prakash Deep Building, 10th Floor, 7 Tolstoy Marg, New Delhi – 110001, India

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

19.10.2005

 

 

Com. Reg. No.:

55-211274

 

 

Capital Investment / Paid-up Capital :

Rs.10024.626 Millions

 

 

CIN No.:

[Company Identification No.]

U31101DL2005PLC211274

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Electric Power Generation, Transmission and Distribution

 

 

No. of Employees :

Not Available 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 39000000

 

 

Status :

Project under implementation

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is a 100% subsidiary of “Essar Power Limited”.

 

Even though the company was incorporated in 2005, it has not yet commence its commercial activity.

 

As per the director’s report the company expected to get start from Jan. 2014.

 

From the financial of 2012 the company has recorded some pre-operative expenses.

 

However, capital base of the company is strong. The subject gets strong support from its holding company.

 

Payment terms are unknown.

 

The company can be considered for business dealings with some cautions.

 

NOTES:

 

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Bank Facilities: BBB

Rating Explanation

Having moderate degree of safety regarding timely servicing of financial obligation, it carry moderate credit risk.

Date

March, 2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office :

Prakash Deep Building, 10th Floor, 7 Tolstoy Marg, New Delhi – 110001, India

Tel. No.:

91-11-43501000

Fax No.:

91-11-43501046/ 47

E-Mail :

powersec@essar.com

Website :

http://www.essar.com

 

 

Corporate Office :

Essar House, 11 K K Marg, Mahalaxmi, Mumbai – 400034, Maharashtra, India

Tel. No.:

91-22-66601100/ 40011100

Fax No.:

91-22-23544787

 

 

DIRECTORS

 

(AS ON 03.07.2012)

 

Name :

Mr. Vijayabhaskara Kalakota Reddy

Designation :

Director

Address :

61, Marble Arch, 5th Road, Santacruz (East), Mumbai – 400055, Maharashtra, India

Date of Birth/Age :

01.07.1961

Date of Appointment :

15.04.2009

DIN No.:

01683467

 

 

Name :

Mr. Ashwini Kumar Singh

Designation :

Director

Address :

3-C, E-Block, Belair Apartment, Jokiram Durga Dutt Lane, Main Road, Ranchi – 834001, Jharkhand, India

Date of Birth/Age :

01.02.1944

Date of Appointment :

05.04.2010

DIN No.:

00365901

 

 

Name :

Mr. Deepak Krishna Gopal Maheshwari

Designation :

Additional Director

Address :

16034 Chaitanya Towers, Prabhadevi, Mumbai – 400025, Maharashtra, India 

Date of Birth/Age :

25.09.1969

Date of Appointment :

05.03.2013

Email :

deepak.maheshwari@essar.com

DIN No.:

01724301

 

 

KEY EXECUTIVES

 

Name :

Mr. Debasis Bhattacharya

Designation :

Company Secretary

Address :

A-11, 255 Cosmopolis 10th Main 1st Cross, Indiranagar 2nd Stage, Bangalore – 560008, Karnataka, India

Date of Birth/Age :

05.04.1957

Date of Appointment :

05.03.2013

PAN No.:

debasis.bhattacharya@essar.com

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 03.07.2012)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Essar Power Limited, India

 

1002462522

Essar Power Limited, India Jointly with Nitesh Nath

 

10

Essar Power Limited, India Jointly with S. Bhujade

 

10

Essar Power Limited, India Jointly with V T Joshi

 

10

Essar Power Limited, India Jointly with Gyan Anand

 

10

Essar Power Limited, India Jointly with R K Sethi

 

10

Essar Power Limited, India Jointly with R R Pillai

 

10

 

 

 

Total

 

 

1002462582

 

 

(AS ON 22.03.2013)

 

Names of Allottees

 

 

No. of Shares Allotted

 

 

 

Essar Power Limited, India

 

103850000

 

 

 

Total

 

 

103850000

 

 

(AS ON 30.09.2012)

Equity Shares Break – up

 

Category

 

 

Percentage

 

 

 

Bodies corporate

 

100.000

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Electric Power Generation, Transmission and Distribution

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         ICICI Bank Limited

·         Punjab and Sind Bank

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Financial Institutions :

·         Bajaj Finance Limited

·         L & T Infrastructure Finance Limited

 

·         IDBI Tursteeship Services Limited

Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai – 400001, Maharashtra, India

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

“Heritage”, 3rd Floor, Near Gujarat Vidyapith, Off Ashram Road, Ahmedabad – 380014, Gujarat, India

PAN No.:

AABFD7919A

 

 

Holding Company :

·         Essar Power Limited, India

CIN No.: U40100GJ1991PLC064824

 

 

Ultimate Holding Company (As on 31.03.2011) :

·         Essar Global Limited, Cayman Islands

 

 

Fellow Subsidiary

(As on 31.03.2011) :

·         Essar Power M. P. Limited

 

 

Enterprise Commonly Controlled or influenced by major shareholders / Director of the company

(As on 31.03.2011) :

·         Futura Travels Limited

·         Essar Investment Limited

·         Essar Steel (Jharkhand) Limited

·         Essar Project (India) Limited (Formerly Known as Essar Construction (India) Limited)

·         Essar Engineering Services Limited

·         Essar infrastructure Services Limited

·         Essar Information Technology

 

 

CAPITAL STRUCTURE

 

(AS ON 03.07.2012)

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

10000000000

Equity Shares

Rs.10/- each

Rs.100000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

1203012582

Equity Shares

Rs.10/- each

Rs.12030.126 Millions

 

 

 

 

 

 

(AS ON 31.03.2012)

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

9000000000

Equity Shares

Rs.10/- each

Rs.90000.000 Millions

1000000000

Preference Shares

Rs.10/- each

Rs.10000.000 Millions

 

 

 

 

 

Total

 

Rs.100000.000 Millions

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

1002462582

Equity Shares

Rs.10/- each

Rs.10024.626 Millions

 

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

10024.626

5493.626

(b) Reserves & Surplus

 

(180.198)

(178.626)

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1)+(2)

 

9844.428

5315.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

13294.067

0.000

(b) Deferred tax liabilities (Net)

 

0.000

0.000

(c) Other long term liabilities

 

256.894

182.435

(d) long-term provisions

 

368.394

277.905

Total Non-current Liabilities (3)

 

13919.355

460.340

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

0.000

0.000

(b) Trade payables

 

0.000

0.000

(c) Other current liabilities

 

2148.743

153.545

(d) Short-term provisions

 

132.894

189.728

Total Current Liabilities (4)

 

2281.637

343.273

 

 

 

 

TOTAL

 

26045.420

6118.613

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

979.841

839.749

(ii) Intangible Assets

 

0.000

0.000

(iii) Capital work-in-progress

 

17147.596

1439.924

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

0.000

0.000

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

5062.879

3388.031

(e) Other Non-current assets

 

503.216

308.195

Total Non-Current Assets

 

23693.532

5975.899

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

0.000

0.000

(c) Trade receivables

 

0.000

0.000

(d) Cash and cash equivalents

 

2249.221

89.782

(e) Short-term loans and advances

 

6.641

1.930

(f) Other current assets

 

96.026

51.002

Total Current Assets

 

2351.888

142.714

 

 

 

 

TOTAL

 

26045.420

6118.613

 

 

SOURCES OF FUNDS

 

 

 

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

463.626

2] Share Application Money

 

 

193.500

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

(178.408)

NETWORTH

 

 

478.718

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

0.000

2] Unsecured Loans

 

 

400.000

TOTAL BORROWING

 

 

400.000

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

878.718

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

271.455

Capital work-in-progress

 

 

736.049

 

 

 

 

INVESTMENT

 

 

10.043

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

 

0.000

 

Sundry Debtors

 

 

0.000

 

Cash & Bank Balances

 

 

25.897

 

Other Current Assets

 

 

0.000

 

Loans & Advances

 

 

35.598

Total Current Assets

 

 

61.495

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

 

 

200.324

 

Other Current Liabilities

 

 

0.000

 

Provisions

 

 

0.000

Total Current Liabilities

 

 

200.324

Net Current Assets

 

 

(138.829)

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

878.718

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

0.000

0.000

0.000

 

 

Other Income

0.000

0.000

0.000

 

 

TOTAL                                    

0.000

0.000

0.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Operating, Maintenance and Other expenses

1.572

0.217

21.519

 

 

TOTAL                                    

1.572

0.217

21.519

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX

(1.572)

(0.217)

(21.519)

 

 

 

 

 

Less

TAX                                                     

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

(1.572)

(0.217)

(21.519)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

(178.408)

(156.889)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

NA

(178.625)

(178.408)

 

 

 

 

 

 

Earnings Per Share (Rs.)

(0.0022)

(0.0005)

(0.4641)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

0.00
0.00
0.00

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.00
0.00
0.00

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(0.02)

0.00

(6.46)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.00

0.00

(0.04)

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.35

0.00

0.84

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.03

0.42

0.31


 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report

(Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

Yes

24]

Banking facility details

No

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes 

28]

Incorporation details, if applicable

Yes 

29]

Last accounts filed at ROC

Yes 

30]

Major Shareholders, if available

Yes 

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

FIXED ASSETS:

 

·         Freehold Land

·         Computer

·         Plant and Machinery

·         Office Equipment

·         Furniture and Fixture

 

 

NEWS:

 

JHARKHAND ENTERS PPA WITH ESSAR POWER


OCTOBER 2012

 

Jharkhand government has signed a power purchase agreement (PPA) recently with Essar Power Jharkhand which is installing a 1,800 mw thermal power plant at Chandwa of Latehar district. The PPA was signed by the company as per its MoU signed in 2007.

 

To set up the power plant, Essar Group was allowed two coal blocks at North Karanpura and Chakla. The plant will have three units with a total production capacity of 1,88 mw from which the company will provide 450 mw of power to Jharkhand State Electricity Board (JSEB).

 

Adhunik Power and Natural Resources also designed for setting up four thermal power units of 270 mw each in Kandra of Seraikela-Kharswan district. The company signed PPA with JSEB for supply of 25 per cent electricity to the power board at a fixed tariff.

 

 

JHARKHAND ENTERS POWER PURCHASE AGREEMENT WITH PRIVATE PLAYERS

 

JUNE ‘13

 

Jharkhand signed power purchase agreement (PPA) recently with Essar Power Jharkhand Limited which is installing a 1,800 MW thermal power plant at Chandwa of Latehar district. The PPA was signed by the company as per its MoU signed in 2007.

 

In order to set up the power plant, Essar Group was allowed two coal blocks at North Karanpura and Chakla.

 

The plant will have three units with a total production capacity of 1,88 MW from which the company will provide 450 MW of power to Jharkhand State Electricity Board (JSEB).

 

Adhunik Power and Natural Resources Limited also designed for setting up four thermal power units of 270 MW each in Kandra of Seraikela-Kharswan district. The company signed PPA with JSEB for supply of 25 per cent electricity to the power board at a fixed tariff.

 

Abhijit Group - owned, Corporate Power Limited also planned to set up a 1,740 MW power plant near Chandwa with four units of 270 MW each. It will also set up another unit of 660 MW. The PPA is yet to be signed with the state.

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.85

UK Pound

1

Rs.92.31

Euro

1

Rs.78.23

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

27

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

 

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.