MIRA INFORM REPORT

 

 

Report Date :

08.01.2011

 

IDENTIFICATION DETAILS

 

Name :

IMPERIAL CONSULTANTS AND SECURITIES PRIVATE LIMITED

 

ESSAR SERVICES LIMITED (MERGED WITH IMPERIAL CONSULTANTS AND SECURITIES PRIVATE LIMITED)

 

 

Registered Office :

Chennai House, 5th Floor, New No. 7, Esplanade, Chennai-600108, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

31.03.1993

 

 

Com. Reg. No.:

24724

 

 

CIN No.:

[Company Identification No.]

U65993TN1993PTC024724

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Provider of Instrument and Security Services.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an Essar Group company. It is a well established and reputed company having moderate track. Profitability of the company appears to be under severe pressure. There appears to be huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

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

 

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 – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION PARTED BY

 

Name :

Ms. Harshada

Designation :

Company Secretary

Date :

07.01.2011

 

 

LOCATIONS

 

Registered Office :

Chennai House, 5th Floor, New No. 7, Esplanade, Chennai-600108, Tamilnadu, India 

Tel. No.:

91-44-6601100

Fax No.:

91-44-66669511

E-Mail :

sgiri@essar.com

Website :

http://www.essar.com

 

 

Administrative Office:

K K Marg, Mumbai-400034, Maharashtra, India

 

 

DIRECTORS

 

As on 30.09.2009

 

Name :

Mr. Anand Sonthalia

Designation :

Director

Address :

2/5, Cote’D Azur, 2nd Floor, 65, Bhulabhai Desai Road, Breach Candy, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

18.10.1951

Date of Appointment :

14.03.1994

 

 

Name :

Mr. A.K. Musaddy

Designation :

Director

Address :

2, Battery House, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

05.04.1945

Date of Appointment :

27.09.2002

 

 

Name :

Mr. Suresh Sundaram

Designation :

Director

Address :

Flat No. 12 B, Jaldarshan, Napeasea Road, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

03.10.1942

Date of Appointment :

23.09.2005

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2009

 

Names of Shareholders

 

No. of Shares

Essar Projects Limited

 

244994

Essar Projects Limited and A.K. Musaddy

 

1

Essar Projects Limited and N.B. Vyas

 

1

Essar Projects Limited and Suresh Sundaram

 

1

Essar Projects Limited and Shishir Agarwal

 

1

Essar Projects Limited and B. Shivakumar

 

1

Essar Projects Limited and Girish Sathe

 

1

 

 

 

Total

 

245000

 

 

Names of the Fully Convertible Debentures

 

No. of Debentures

Essar Projects Limited (Series – I) 

 

29489117

Essar Projects Limited (Series – II)

 

4396050

Essar Projects Limited (Series – III)

 

10000

Essar Projects Limited (Series – IV)

 

60101679

Essar Projects Limited (Series – V)

 

3740807

Essar Projects Limited (Series – VI)

 

1388206

Essar Projects Limited (Series – VII)

 

15845775

 

 

 

Total

 

114971634

 

 

Equity Shares Break up as on 30.09.2009

 

Category

 

Percentage

 

 

 

Bodies Corporate

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Provider of Instrument and Security Services.

 

 

Terms :

 

Selling :

Cash / Credit

 

 

Purchasing :

Cash / Credit

 

 

GENERAL INFORMATION

 

No of Employee:

5 (Approximately)

 

 

Bankers :

Not Available

 

 

Facilities:

Unsecured Loan

As on 31.03.2008

(Rs. in Millions)

As on 31.03.2007

(Rs. in Millions)

Zero Interest Compulsorily Fully Convertible Debenture of Rs.100 each Fully Paid Up

 

 

Series 1

2948.912

2948.912

Series 2

439.605

439.605

Series 3

1.000

1.000

Series 4

6010.168

6010.168

Series 5

374.081

374.081

Series 6

138.821

138.821

Series 7

1584.577

1584.577

Lease Deposits

84.950

84.950

Total

11582.114

11582.114

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Nisar and Kumar

Chartered Accountant

Address :

C – 2, Everest Building, 4th Floor, Tardeo Road, Tardeo, Mumbai – 400034, Maharashtra, India 

Tel. No.:

91-22-23515912 / 40005394

Fax No.:

91-22-66622066 / 66669511

 

 

Holding Company :
  • Essar Projects Limited (CIN No. U45203TN1990PLC026337)

 

 

Associates/Subsidiaries :
  • Essar Holdings Limited (CIN No. U99999MH1995PLC130159)
  • Essar Securities Limited, Chennai, Kodambakkam

 

 

CAPITAL STRUCTURE

 

As on 31.03.2008

 

Authorised Capital :

No. of Shares

Type

Value

Amount

250000

Equity Shares

Rs. 10 /- each

Rs. 2.500 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

245000

Equity Shares

Rs. 10 /- each

Rs. 2.450 Millions

 

Note:

 

All the above shares are held by Essar Projects Limited, the Holding Company and its Nominees.

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

2.450

2.450

2.450

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

335.566

335.566

335.566

4] (Accumulated Losses)

(2061.586)

(2085.682)

(1680.430)

NETWORTH

(1723.570)

(1747.666)

(1342.414)

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

11582.113

11582.113

11582.113

TOTAL BORROWING

11582.113

11582.113

11582.113

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

9858.543

9834.447

10239.699

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

41.567

48.329

56.191

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

8721.706

7583.638

8511.220

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000

0.000

0.000

 

Sundry Debtors
2205.548

2360.579

1843.621

 

Cash & Bank Balances
2.820

2.690

0.518

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
1301.478

10.892

4.777

Total Current Assets
3509.846

2374.161

1848.916

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
2414.576

171.681

176.628

 

Provisions
0.000

0.000

0.000

Total Current Liabilities
2414.576

171.681

176.628

Net Current Assets
1095.270

2202.480

1672.288

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

9858.543

9834.447

10239.699

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Lease Rent Income

7.300

7.300

7.300

Dividend Receipts

0.059

0.059

0.177

Interest Receipt

5.104

0.013

0.006

Interest on Income tax refund

7.909

2.762

0.000

Miscellaneous Income

0.007

0.009

0.000

Sundry Balance written back

1.837

0.000

0.000

Total Income

22.216

10.142

7.483

 

 

 

 

Profit/(Loss) Before Tax

13.437

(507.303)

(439.194)

Provision for Taxation

10.659

0.000

0.000

Profit/(Loss) After Tax

24.096

(507.303)

(439.194)

 

 

 

 

Expenditures :

 

 

 

 

Administrative Expenses

0.917

0.259

0.373

 

Loss due to Exchange Fluctuation

0.000

0.006

0.000

 

Sundry Balance written off

0.000

0.234

0.000

 

Loss on sale of Investments

2.600

556.735

451.165

 

Depreciation

6.762

7.863

9.143

 

Prior period Expenses

0.000

0.000

0.010

 

Provision for dimunition in value of Investments written back

(1.500)

(47.652)

(14.014)

Total Expenditure

8.779

517.446

446.677

 

 

 

 

Earnings Per Share (Rs.)

98.35

(2070.63)

(1792.63)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2008

31.03.2007

31.03.2006

Return on Total Assets

(PBT/Total Assets}

(%)
0.38

(2.09)

(2.31)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.01)

(0.29)

(0.33)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
(8.12)

(6.73)

(8.76)

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.45

13.83

10.47

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sundry Creditors Details;

 

Particulars

31.03.2008

Rs. in Millions

31.03.2007

Rs. in Millions

31.03.2006

Rs. in Millions

Sundry Creditors (other than micro, small and medium industrial units)

2412.263

169.356

NA

Other Liabilities

2.312

2.324

NA

 

 

Fixed Assets:

 

  • Land
  • Plant and Machinery

 

Note:

 

Mr. Vijay Ramachandran, Manager of Essar Investment Limited confirmed that “Essar Services Limited” is dissolved and merged with “Imperial Consultants and Securities Private Limited” 3 years before. 

 

 

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.45.37

UK Pound

1

Rs.70.04

Euro

1

Rs.58.93

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

 

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

 

 

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.