MIRA
INFORM REPORT
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Report Date : |
25.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
HAZIRA PIPE MILL LIMITED |
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Registered Office : |
27 KM, Surat Hazira Road, Hazira, Surat – 394 270, Gujarat |
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Country : |
India |
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Date of Incorporation : |
06.03.2007 |
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Com. Reg. No.: |
50164 |
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CIN No.: [Company
Identification No.] |
U25199GJ2007PLC050164 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH10596F |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer of all types of pipe. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Status : |
New Large Project |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Essar Group, a diversified, medium sized
industrial house. Subject is implements new project. It has been successful in obtaining
huge loans from Bank of India (Rs.2000 millions) and State Bank of Patiala
(Rs.1700 millions) Trade relations are fair. However payments of group companies are slow
at times. The company can be considered normal for business dealings at usual
trade terms and conditions with caution.
Group Officers Mr. Anushpal – 9879102067, Mr. Chiranjiv – 9925241369
and Mr. Prasad could not offer any information on the project. |
LOCATIONS
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Registered Office/Factory : |
27 KM, Surat Hazira Road, Hazira, Surat – 394 270, Gujarat, India |
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Tel. No.: |
91-261-2872400 |
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Fax No.: |
91-261-2872796 |
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E-Mail : |
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Head Office : |
Essar House, P O Box No. 7945, Mahalaxmi, Mumbai – 400 034,
Maharashtra, India |
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Tel. No.: |
91-22-66601100 / 40011100 |
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Fax No.: |
91-22-66669509 / 24954789 |
DIRECTORS
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Name : |
Mr. V G Raghavan |
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Designation : |
Director |
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Address : |
171/172, Tower – B, Kalpataru Residency, Opp. Cine Planet, Sion,
Mumbai – 400 022, Maharashtra, India |
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Date of Birth/Age : |
18.07.1945 |
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Other Directorship : |
·
Essar Steel Limited CIN
No. : L27100GJ1976PLC013787 Address
: Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400 034,
Maharashtra, India Tel
No.: 91-22-2495 0606 / 6660 1100 Fax
No. : 91-22-2492 8896 Email
:
steel@essar.com ·
Essar Information Technology Limited CIN
No. : U72200MH1992PLC064816 ·
Bhander Power Limited CIN
No. : U31101MH1995PLC151250 ·
Essar Steel Chhattisgarh Limited CIN
No. : U27100GJ2005PLC046274 ·
Essar Steel Orissa Limited CIN
No. : U27104MH2006PLC162609 ·
Essar Steel Jharkhand Limited CIN
No. : U27100GJ2005PTC046272 ·
Essar Power (Jharkhand) Limited CIN
No. : L31101MH2005PLC156860 ·
Essar Power (Orissa) Limited CIN
No. : U31101MH2005PLC156859 ·
Futura Aviation Limited CIN
No. : U74210MH2006PTC159709 ·
Essar Mineral Resources Limited CIN
No. : U13100GJ2006PLC047506 ·
Essar Steel (Hazira) Limited CIN
No. : U27100GJ2005PLC046273 |
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Name : |
Mr. Prashant Ruia |
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Designation : |
Director |
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Address : |
Bin Hamooda Villa nO. 17, Plot No. 992, 332-14, Jumeriah, Dubai –
61078 |
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Date of Birth/Age : |
04.06.1969 |
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Name : |
Mr. Krishna Kumar Purohit |
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Designation : |
Director |
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Address : |
FG – 1 and 2, Scheme No. S4, Vijay Nagar, Indore – 451 001, Madhya
Pradesh, India |
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Date of Birth/Age : |
26.09.1958 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
List of Allotment (As on 22.05.2007)
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Names of Allottees |
No. of Shares |
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Essar Steel Holdings Limited |
101250 |
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Total |
101250 |
List of Allotment (As on 09.07.2008)
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Names of Allottees |
No. of Shares |
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Essar Steel Holdings Limited |
83477430 |
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Total |
83477430 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of all types of pipe. |
GENERAL
INFORMATION
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Bankers : |
·
Bank of India Mumbai Large Corporate Branch Bank of India Building, 4th
Floor, 70/80, M G Road, Mumbai – 400 001, Maharashtra, India ·
State Bank of Patiala Commercial Branch, Atlanta, Nariman Point,
Mumbai – 400 021, Maharashtra, India |
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Banking
Relations : |
Good |
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Auditors : |
Not Available |
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Group Companies : |
·
Essar Steel Limited CIN
No. : L27100GJ1976PLC013787 ·
Essar Information Technology Limited CIN
No. : U72200MH1992PLC064816 ·
Bhander Power Limited CIN
No. : U31101MH1995PLC151250 ·
Essar Steel Chhattisgarh Limited CIN
No. : U27100GJ2005PLC046274 ·
Essar Steel Orissa Limited CIN
No. : U27104MH2006PLC162609 ·
Essar Steel Jharkhand Limited CIN
No. : U27100GJ2005PTC046272 ·
Essar Power (Jharkhand) Limited CIN
No. : L31101MH2005PLC156860 ·
Essar Power (Orissa) Limited CIN
No. : U31101MH2005PLC156859 ·
Futura Aviation Limited CIN
No. : U74210MH2006PTC159709 ·
Essar Mineral Resources Limited CIN
No. : U13100GJ2006PLC047506 ·
Essar Steel (Hazira) Limited CIN
No. : U27100GJ2005PLC046273 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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500000000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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Not Available |
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FINANCIAL DATA
[all figures are in Rupees Millions]
Not Available
LOCAL AGENCY
FURTHER INFORMATION
Form No. 8
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Corporate
identity number of the company |
U25199GJ2007PLC050164 |
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Name of the
company |
HAZIRA PIPE MILL LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
27 KM, Surat Hazira Road, Hazira, Surat – 394 270, Gujarat, India |
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This form is for |
Creation of
charge |
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Type of charge |
Movable property
(not being pledge) |
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Particular of
charge holder |
State Bank of Patiala Commercial Branch, Atlanta, Nariman Point, Mumbai – 400 021,
Maharashtra, India |
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Nature of
instrument creating charge |
Deed of
Hypothecation dated 7th June, 2008 |
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Date of
instrument Creating the charge |
07.06.2008 |
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Amount secured by
the charge |
Rs.1700 millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
·
Rate of
interest 12.75% linked to individuals banks PLR (0.75% Below BPLR) payable
monthly with reset. ·
Terms of
repayment Repayable in 28 quarterly installments at the end of the calendar
quarter commencing after 36 months from the date of financial closure. ·
Margin The Debt Equity ratio is to be maintained at 2:1 ·
Extent and
operation of the charge The whole of the movable properties of the Company financed under the
facility granted by the Bank moreover described in Deed of
Hypothecation. |
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Particulars of
the property charged |
The whole of the
movable properties of the Company financed under the facility granted by the
Bank moreover described in Deed of Hypothecation. |
Web Details
The Essar Group is one of India's largest corporate houses with interests spanning the manufacturing and services sectors; Steel, Oil and Gas, Power, Shipping, Telecom and Construction. The group's enterprise value is approximately US $ 15 billion (Rs. 670000 millions).
Subject, a group company of Essar is an upcoming project at Hazira, Surat. The
company is setting up SAW pipe manufacturing facilities for API grade
Longitudinal Submerged Arc Welded (L SAW) and Helical Submerged Arc Welded (H
SAW) pipes along with the coating facilities. Installed capacity of the SAW
pipe facility is estimated at 600000 TPA with coating facilities at 4500000 M2.
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 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.83 |
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UK Pound |
1 |
Rs.84.90 |
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Euro |
1 |
Rs.67.26 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
4 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
- |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
- |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
- |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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29 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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