MIRA
INFORM REPORT
|
Report Date : |
30.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
ESSAR INVESTMENTS LIMITED |
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Registered Office : |
Essar House, 11-K.K. Marg, Mahalaxmi, Mumbai, Maharashtra-400034 |
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Country : |
India |
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Financials (as on) : |
30.09.2005 |
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Date of Incorporation : |
10.12.1976 |
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Com. Reg. No.: |
034721 |
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CIN No.: [Company
Identification No.] |
L99999MH1976PLC034721 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUM00598D |
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Legal Form : |
Public Limited Liability Company Company’s Share are Listed on the
Stock Exchange |
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Line of Business : |
To Purchase acquire hold and dispose of or otherwise deal and invest in
any share, debentures and other securities in or of any company or combines |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 13600000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Essar House, 11-Keshavrao Khadye Marg, Mahalaxmi, Mumbai-400034,
Maharashtra |
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Tel. No.: |
91-22-50011100/ 66601100 |
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Fax No: |
91-22-66601809 |
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E-mail: |
DIRECTORS
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Name : |
Mr. R. N. Ruia |
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Designation : |
Director |
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Address : |
c/O Jayantilal Thakkar, associates, III A, Mahatma Gandhi road, Fort,
Mumbai:400023, Maharashtra |
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Date of Birth/Age : |
06.05.1949 |
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Date of Appointment : |
14.12.1976 |
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Name : |
Mr. S. V. Venkatesan |
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Designation : |
Director |
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Address : |
F-401, The At rium old No. 49, New No.22, Kalashetra Road,
ThiruvanmiYur, Chennai :600041, Tamilnadu |
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Date of Birth/Age : |
01.10.1939 |
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Date of Appointment : |
13.09.1991 |
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Name : |
Br. B. Bhavanishankar |
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Designation : |
Director |
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Address : |
M-4, Manek Apartments, Jeeva Ratnam Nagar, Adyar, Chennai :600020,
Tamilnadu |
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Date of Birth/Age : |
16.08.1934 |
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Date of Appointment : |
28.09.1994 |
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Name : |
Mr. Dilip J. Thakkar |
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Designation : |
Director |
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Address : |
111 A, Mahatma Gandhi Road, Fort, Mumbai:400023, Maharashtra. |
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Date of Birth/Age : |
01.10.1936 |
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Date of Appointment : |
10.10.1994 |
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Name : |
Mr. Narottam B. Vyas |
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Designation : |
Secretary |
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Address : |
A-3/1701, Whispering Palms, Lokhandwala Complex, Akurli road, kandivali (East), Mumbai:400101,
Mahrashtra |
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Date of Birth/Age : |
03.07.1954 |
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Date of Appointment : |
26.02.1990 |
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Name of Directorship in other companies |
U35111TN1993PLC025293 Vadinar Oil Terminal Limited Director U72200DL1997PTC085765 Clickforsteel services Limited Director U65990MH1989PLC052712 Prajkta Finance and Trading Limited Director U70120MH1989PLC053170 Pratik Estate Private Limited Director U65990MH1989PLC052713 Shubhangi Investment and Trading Limited Director U72200MH1992PLC064816 Essar Information Technology Limited Director U51900MHPTC071684 Prajesh Marketing Private Limited Director LO1120MH1993PLC071726 Essar Agrotech Limited Director U45203TN1990PLC026337 Essar Projects Limited Director |
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KEY EXECUTIVES
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Name : |
Mr. B. Shivakumar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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Madhu Ruia |
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48000 |
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Manju Ruia |
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52000 |
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Shashikant N. Ruia |
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76800 |
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Anshuman Ruia |
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73600 |
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Ravikant N. Ruia |
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5000 |
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Prashant Ruia |
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4000 |
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Ravikant N. Ruia |
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28000 |
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Rvikant n. Ruia |
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32000 |
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Vasudha P. Ruia |
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40000 |
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Seawel Inter Drill |
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96300 |
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Oceanic Drilling |
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91000 |
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Fairfied Petromarine |
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105600 |
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Teletech Investments (India) Limited |
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799000 |
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Essar telecom Limited |
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36755 |
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Essar Projects Limited |
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700000 |
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Essar World Trade |
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515000 |
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Essar House Limited |
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930976 |
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BUSINESS DETAILS
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Line of Business : |
To Purchase acquire hold and dispose of or otherwise deal and invest
in any share, debentures and other securities in or of any company or
companies |
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Products : |
Management Service Income from Plant Hire Promotion of Industrial Undertaking |
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GENERAL
INFORMATION
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No. of Employees : |
Unknown |
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Bankers : |
American Express Bank ABN AMRO Bank State Bank of India Hongkong and Shanghai Banking Corporation |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Lodha and Company Chartered Accountant |
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Address : |
40, A. Doshi Marg, Mumbai-400 023. |
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Associates/Subsidiaries : |
Essar World Trade Limited Shubhangi Investments & Trading Limited Prajakta Finance & Trading Limited Kauser Engineers Limited Pratlk Estates Limited Essar Constructions Limited Essar Properties Limited Shandllya Traders Pvt. Limited Bhander Power Limited Kroner Investments Limited Sasmlta Investments Limited Aegis BPO Services Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2500000 |
Equity Shares |
Rs.10/-each |
Rs.25.000 Millions |
|
7500000 |
Preference Shares |
Rs.10/-each |
Rs.75.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
652300 |
Equity Shares |
Rs.10/- each
|
Rs.6.523
Millions |
|
2471510 |
Preference Share |
Rs.10/- each |
Rs.24.715
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2005 |
30.09.2004 |
31.12.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
47.538 |
78.521 |
78.521 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3374.071 |
3530.101 |
3821.317 |
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4] (Accumulated Losses) |
0.000 |
(172.173) |
0.000 |
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NETWORTH |
3421.609 |
3436.449 |
3899.838 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
14.903 |
45.867 |
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2] Unsecured Loans |
13425.139 |
4338.912 |
4834.185 |
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TOTAL BORROWING |
13425.139 |
4353.815 |
4880.052 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
16846.748 |
7790.264 |
8779.891 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
11.223 |
54.722 |
53.360 |
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Capital work-in-progress |
0.000 |
0.0000 |
0.000 |
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INVESTMENT |
8093.385 |
7037.520 |
6451.621 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
60.149
|
88.428 |
75.886 |
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Sundry Debtors |
79.832
|
11.869 |
9.064 |
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Cash & Bank Balances |
130.949
|
70.568 |
236.288 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
11817.105
|
1670.256 |
2496.504 |
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Total
Current Assets |
12088.035
|
1841.121 |
2817.742 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1253.027
|
1141.862 |
541.389 |
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Provisions |
2092.86
|
1.239 |
1.443 |
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Total
Current Liabilities |
3345.895
|
1143.101 |
542.832 |
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Net Current Assets |
8742.140
|
698.020 |
2274.910 |
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MISCELLANEOUS EXPENSES |
0.0000 |
0.0000 |
0.0000 |
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TOTAL |
16846.748 |
7790.264 |
8779.891 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
30.09.2005 |
30.09.2004 |
31.12.2003 |
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Sales Turnover |
0.000 |
0.000 |
0.000 |
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Other Income |
0.000 |
141.418 |
464.688 |
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Total Income |
0.000 |
141.418 |
464.688 |
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Profit/(Loss) Before Tax |
0.000 |
(463.261) |
179.130 |
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Provision for Taxation |
0.000 |
0.128 |
10.247 |
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Profit/(Loss) After Tax |
0.000 |
(463.389) |
168.883 |
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Expenditures : |
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Administrative Expenses |
0.000 |
26.387 |
16.588 |
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Plant Operating Expenses of Crane Division |
0.000 |
0.318 |
2.289 |
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Staff Cost |
0.000 |
7.031 |
20.078 |
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Interest |
0.000 |
144.472 |
37.557 |
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Provision for redemption premium on
preference shares |
0.000 |
0.000 |
0.719 |
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Bad Debts written off |
0.000 |
205.931 |
2.526 |
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Loss/(Profit) on sale/ Discard fo Assets
(Net) |
0.000 |
0.00 |
4.598 |
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Provision fro diminution in the value of
investments |
0.000 |
355.599 |
285.384 |
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Total Expenditure |
0.000 |
739.738 |
369.739 |
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KEY RATIOS
|
PARTICULARS |
|
30.09.2005 |
30.09.2004 |
31.12.2003 |
|
PAT / Total Income |
(%) |
--
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(327.67) |
36.34 |
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Net Profit Margin (PBT/Sales) |
(%) |
--
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-- |
-- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
--
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(24.43) |
6.23 |
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Return on Investment (ROI) (PBT/Networth) |
|
--
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(1.33) |
0.04 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.97
|
0.33 |
0.13 |
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Current Ratio (Current Asset/Current Liability) |
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3.61
|
1.61 |
5.19 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
Building
Plant and Machinery
Office Equipments
Furniture and Fixture
Vechicles
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This form is for |
Modification of
Charge |
|
Charge
identification number of the charge to be modified |
90231188 |
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Corporate
identity number of the company |
L99999MH1984PLC03484PLC034721 |
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Name of the
company |
Essar Investment
Limited |
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Address of the registered
office or of the principal place of
business in India of the company |
Essar House,
11-k.k. Marg, Mahalaxmi, Mumbai, Maharashtra, India:400034 |
|
Type of charge |
Immovable
Property |
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Particular of
charge holder |
State Bank of
India Diamond Branch,
Mumbai:400004, Maharashtra |
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Nature of
description of the instrument creating or modifying the charge |
No Instrument.
Memorandum of entry was executed |
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Date of
instrument Creating the charge |
12.10.2006 |
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Amount secured by
the charge |
Rs.642.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
Not Applicable Terms of
repayment: Not Applicable Margin: Not
Applicable Extent and
operation of the Charge: Not
Applicable Others : Not
Applicable |
|
Short particulars
of the property charged |
This Charge is created
towards the corporate guarantee given to State Bank of India, Diamond Branch,
GirGaum Mumbai-4adn Global Trust Bank Ltd. Shreji Chambers, Tafu Road
No:2,Opera house, Mumbai- 4By Essar Investments Limited (Guarantor Company)
By Deposit of Title Deeds Over its Immovable Properties Owned by the to
Secure it’s Credit Facilities of Rs. 160.000 Millions Availed by Kama
Jewellery (India) Pvt. Limited. (Borrower Company) (Details as per Annexure). |
|
Date of latest
modification prior to the present modification |
04.03.2005 |
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Particulars of
the present modification |
?Now by the
present Modfn. Dt: 12.10.2006. A Memoranduam of Entry was Excuted Towards
Guarantee Given to State Bank of India, Diamond Branch Mumbai-4 and UTI Bank
Limited Mumbai And ICICI Bank Limited Mumbai by Essar Investment Limited
(Guarantor Company) By Giving an additional Security by depsit of the title
deeds over the immovable property owned by them to secure its extended limits
of Rs.642.000 Millions Availed of by Kama Jewellery (India ) Private Limited
(borrower Company) (Details as per Annexure) |
Essar Investment Limited
International Public Company
Essar House,11Keshavrao Khadye Marg,
Mahalaxmi, Mumbai:400 034, India
91-22-22402600, http://www.essar.com
Primary SIC: Heavy Construction Equip Rent and
Lease Primary NAICS: Construction, Forestry Machinery and Equipment Rental and
Leasing
Description: Services: Hire of Machinery and
Plant
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 records 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 records 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.42.88 |
|
UK Pound |
1 |
Rs.84.22 |
|
Euro |
1 |
Rs.57.27 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
TOTAL |
|
52 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|