MIRA INFORM REPORT

 

 

Report Date :

15.03.2013

 

IDENTIFICATION DETAILS

 

Name :

ADANI POWER MAHARASHTRA LIMITED

 

 

Registered Office :

Adani House, Near Mithakhali Six Road, Navarangpura, Ahmedabad – 380 009, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

11.04.2007

 

 

Com. Reg. No.:

04-50506

 

 

Capital Investment / Paid-up Capital :

Rs.21819.646 Millions

 

 

CIN No.:

[Company Identification No.]

U40101GJ2007PLC050506

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMA07282C

 

 

PAN No.:

[Permanent Account No.]

AAGCA4102J

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in the business of power generation.

 

 

No. of Employees :

400 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (35)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 86000000

 

 

Status :

Recently Commenced Business Activity

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of ‘Adani Power Limited’.

 

Mr. Prashant, Senior Executive Accountant has provided us with general information and also confirmed that even though the company was incorporated during April 2007, it has recently commenced its business activity during August, 2012. 

 

There appear huge external borrowings recorded by the company.

 

However, it receives strong support from its group. Trade relations are reported as decent. Business is active. Payment terms are slow but correct.

 

The company can be considered for business dealings with slight caution.

 

NOTES:

 

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

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term Rating: BB+

Rating Explanation

Moderate risk of default

Date

09.07.2012

 

 

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.

 

 

INFORMATION PARTED BY (General Details)

 

Name :

Mr. Prashant

Designation :

Senior Executive Accountant

Contact No.:

91-9545554954

Date :

15.03.2013

 

 

LOCATIONS

 

Registered Office :

Adani House, Near Mithakhali Six Road, Navarangpura, Ahmedabad – 380 009, Gujarat, India

Tel. No.:

91-79-26565555

Mobile No.:

91-9545554954 (Mr. Prashant)

Fax No.:

91-79-26565500

E-Mail :

krunal.bhatt@adanipower.com

prashant.k@adani.com

rahul.shah@adani.com

Website :

http://www.adanipower.com

Location :

Owned

 

 

Factory :

Plot No.1-A, Tirora Growth Centre, MIDC Area, Tirora, District Gondia - 441911, Maharashtra, India

Area :

997 hector

Location :

Owned

 

 

DIRECTORS

 

(AS ON 06.08.2012)

 

Name :

Mr. Vineet Jain

Designation :

Chairman

Address :

A-146, Upper Ground Floor, Priyadarshani Vihar, Near Lovely Public School, Delhi – 110092, India

Date of Birth/Age :

30.04.1971

Date of Appointment :

06.08.2012

DIN No.:

00053906

 

 

Name :

Mr. Rajendra Kumar Madan

Designation :

Managing Director

Address :

K - 4/ 6, DLF Phase II, Gurgaon – 122 001, Haryana, India

Date of Birth/Age :

28.08.1941

Date of Appointment :

01.03.2011

DIN No.:

00899341

 

 

Name :

Mr. Devang Sanat Desai 

Designation :

Director

Address :

201, Parikrama, Opposite Shetrunjay Tower, Off 132 Ring Road, Saterlite, Ahmedabad – 380015 

Date of Birth/Age :

01.07.1956

Date of Appointment :

30.10.2009

DIN No.:

00005743

 

 

Name :

Mr. Vijay Pyarelal Ranchan

Designation :

Director

Address :

Plot no.131, Sector 8-C, Gandhinagar – 382008, Gujarat, India

Date of Birth/Age :

01.10.1942

Date of Appointment :

06.05.2011

DIN No.:

01602023

 

 

KEY EXECUTIVES

 

Name :

Mr. Prashant

Designation :

Senior Executive Accountant

 

 

Name :

Mr. Rajesh Ramchandra Shah 

Designation :

Company Secretary

Address :

16, Hilton Residency, Opp Shaligram 2, Anand Nagar, Seterlite, Ahmedabad – 380051, India

Date of Birth/Age :

18.10.1981

Date of Appointment :

01.04.2010

PAN No.:

ABHPS8793E

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 06.08.2012)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Adani Power Limited, India

 

1614653683

Rajesh S. Adani (Nominee of Adani Power Limited, India)

 

50

Gautam S. Adani (Nominee of Adani Power Limited, India)

 

50

Ameet H. Desai (Nominee of Adani Power Limited, India)

 

1

Rahul C. Shah (Nominee of Adani Power Limited, India)

 

1

Devang Desai (Nominee of Adani Power Limited, India)

 

1

Growmore Trade and Investment Private Limited, Mauritius

 

567310790

Vineet Jain (Nominee of Adani Power Limited, India)

 

1

 

 

 

Total

 

 

2181964577

 

 

(AS ON 30.09.2012)

Equity Shares Break – up

 

Category

 

Percentage

 

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

26.00

Bodies corporate

 

74.00

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of power generation.

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

400 (Approximately)

 

 

Bankers :

·         State Bank of India

State Bank Bhavan, Madame Cama Road, Mumbai – 400021, Maharashtra, India

 

 

Facilities :

Secured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

 

 

 

Term loans from banks

(The term loans from banks and financial Institution aggregating to Rs. 3650.000 Millions are repayable in structured instalments ranging from quarterly to yearly starting from July 2012.)

1966.667

1792.700

Term loans from others

The term loans from banks and financial

Institution aggregating to Rs.3650.000 Millions are repayable in structured instalments ranging from quarterly to yearly starting from July 2012.

1526.250

1650.000

Loans repayable on demand

(The bills discounted under letters of credit (to be converted into term loans) aggregating to Rs.78869.677 Millions are repayable in 40 quarterly installments starting from July 2012.

75110.105

39255.703

Loans repayable on demand

Bills Discounted under Letters of Credit from banks aggregating to Rs.118.975 Millions are secured by Fixed Deposit Cash Margin.

118.975

0.000

 

 

 

Total

 

78721.997

42698.403

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

C.C. Chokshi and Company

Chartered Accountants

Address :

Heritage, Third Floor, Near Gujarat Vidyapith, Off Ashram Road, Ahmedabad – 380 014, Gujarat, India

Tel No.:

91-79-27582542/ 27582543

Fax No.:

91-79-27582551

PAN No.:

AACFC2938D

 

 

Ultimate Holding Company:

·         Adani Enterprise Limited

CIN No.: L51100GJ1993PLC019067

 

 

Holding Company :

·         Adani Power Limited

CIN No.: U40100GJ1996PLC030533

 

 

Other related parties :

·         Shantikrupa Estate Private Limited

 

 

Fellow Subsidiaries :

·         Adani Pench Power Limited

·         Adani Infrastructure and Developers Private Limited

·         Adani Infra (India) Limited

·         Adani Gas Limited

·         Adani Global Pte Limited

 

 

CAPITAL STRUCTURE

 

(AS ON 06.08.2012)

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

4250000000

Equity Shares

Rs.10/- each

Rs.42500.000 Millions

750000000

Cumulative Compulsorily Convertible Participatory Preference Shares

Rs.10/- each

Rs.7500.000 Millions

 

 

 

 

 

Total

 

 

Rs.50000.000 millions

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

2181964577

Equity Shares

Rs.10/- each

Rs.21819.646 Millions

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

21819.646

21819.646

8085.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(327.553)

(49.649)

(29.678)

NETWORTH

21492.093

21769.997

8055.322

LOAN FUNDS

 

 

 

1] Secured Loans

78721.997

42698.403

7943.207

2] Unsecured Loans

21560.022

1160.000

0.000

TOTAL BORROWING

100282.019

43858.403

7943.207

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

121774.112

65628.400

15998.529

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1102.644

597.873

208.326

Capital work-in-progress

122730.244

65952.338

15581.241

 

 

 

 

INVESTMENT

90.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000

0.000

0.000

 

Sundry Debtors

0.000

0.000

0.000

 

Cash & Bank Balances

1802.006

3128.191

974.068

 

Other Current Assets

2133.571

171.491

0.000

 

Loans & Advances

18388.773

9031.800

1308.144

Total Current Assets

22324.350

12331.482

2282.212

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

6.553

2.605

2014.791

 

Other Current Liabilities

24441.200

13235.343

54.702

 

Provisions

25.373

15.345

3.757

Total Current Liabilities

24473.126

13253.293

2073.250

Net Current Assets

(2148.776)

(921.811)

208.962

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

121774.112

65628.400

15998.529

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

0.000

0.000

0.000

 

 

Other Income

417.522

0.000

0.000

 

 

TOTAL                                     (A)

417.522

0.000

0.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Other Expenses

11.789

19.971

5.928

 

 

TOTAL                                     (B)

11.789

19.971

5.928

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

405.733

(19.971)

(5.928)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

638.209

0.000

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

(232.476)

(19.971)

(5.928)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

(232.476)

(19.971)

(5.928)

 

 

 

 

 

Less

TAX                                                                  (H)

45.427

0.000

0.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

(277.903)

(19.971)

(5.928)

 

 

 

 

 

 

Earnings Per Share (Rs.)

(0.13)

(0.01)

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

(66.56)

0.00

0.00

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.00

0.00

0.00

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(0.99)

(0.15)

(0.24)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.01)

0.00

0.00

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

4.67

2.01

0.99

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.91

0.93

1.10

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2012

31.03.2011

 

31.03.2010

 

(Rs. In Millions)

 

 

 

 

Sundry Creditors

6.553

2.605

2014.791

 

 

 

 

Total

 

6.553

2.605

2014.791

 

 

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

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

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

Yes

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

Yes

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

 

 

PROJECT OF THE COMPANY:

 

The Company is setting up 3300MW thermal power project at Tiroda, District Gondia, Maharashtra based on super critical technology. The Power Project is being developed in three phases i.e. Phase I 1320MW (2x660MW), Phase II 660MW (1x660MW), Phase III 1320MW (2x660MW).

 

Power Purchase Agreement (PPA) has been executed with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for sale of 2,645 MW of electricity for a term of 25 years.

 

Water requirement for the projects has been fulfilled. The environmental clearances for the projects have been received from MoEF, GoI.

 

Construction of a 200 km 440 kV double circuit transmission line from Tiroda to Warora in Maharashtra, is under progress and the Company has received license by Maharashtra Electricity Regulatory Commission (MERC). Coal requirement for Tiroda I and II power project has been fulfilled from domestic sources and an application for domestic coal linkage to meet the coal requirement of Phase III power project has been made. In FY13, a capacity of 3300 MW is expected to be commissioned.

 

 

UNSECURED LOANS

 

Particulars

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

 

 

 

Loans and advances from related parties

20060.022

1160.000

Loans and advances from others

1500.000

0.000

 

 

 

Total

 

21560.022

1160.000

 

 

 

FIXED ASSETS:

 

·         Leasehold Land

·         Building

·         Plant and Machinery

·         Computer

·         Office Equipments

·         Furniture and Fixtures

·         Vehicles

 

 

 


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.54.44

UK Pound

1

Rs.81.33

Euro

1

Rs.70.50

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

4

--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

 

35

 

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.