MIRA
INFORM REPORT
|
Report Date : |
13.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
ESSAR HOUSE LIMITED |
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Registered
Office : |
Essar House, 11, Keshavaro Khadye Marg, Mahalaxmi, Mumbai – 400034, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
11.10.1982 |
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Com. Reg. No.: |
11-117644 |
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Capital Investment
/ Paid-up Capital : |
Rs.150.000 Millions |
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CIN No.: [Company Identification
No.] |
U70100MH1982PLC117644 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUME4703G |
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PAN No.: [Permanent Account No.] |
AACCJ2883P |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Engaged in Property and Real Estate |
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No. of Employees
: |
Not divulged by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
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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 9140000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. The networth
of company appears sound. Trade Relations are reported as fair. Business is
active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
Management Non Co-operative.
LOCATIONS
|
Registered Office : |
Essar House, 11, Keshavaro Khadye Marg, Mahalaxmi, Mumbai – 400034,
Maharashtra, India |
|
Tel. No.: |
91-22-56601100/ 50011100/ 66601100 |
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Fax No.: |
91-22-24954331/ 23544331 |
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E-Mail : |
manikant.vashistha@essar.com |
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Website : |
DIRECTORS
(AS ON 29.09.2011)
|
Name : |
Mr. Suresh Sundaram |
|
Designation : |
Director |
|
Address : |
12B, Jaldarshan, Napean Sea Road, Mumbai - 400036, Maharashtra, India |
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Date of Birth/Age : |
03.10.1942 |
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Date of Appointment : |
23.06.2005 |
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DIN No.: |
00063535 |
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Name : |
Mr. Narottam Babulal Vyas |
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Designation : |
Director |
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Address : |
A-3, 1701, Whispering Palms, Lokhandwala Complex, Akruli Road,
Kandiwali (East), Mumbai - 400 101, Maharashtra, India |
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Date of Birth/Age : |
03.07.1954 |
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Date of Appointment : |
01.10.1998 |
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DIN No.: |
00055499 |
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|
Name : |
Mr. Anand Sonthalia |
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Designation : |
Director |
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Address : |
C/1/1, Nand Niketan, 302, Essar Township, Hazira, Surat - 394 270,
Gujarat, India |
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Date of Birth/Age : |
18.10.1951 |
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Date of Appointment : |
01.10.1998 |
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DIN No.: |
00253874 |
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Name : |
Mr. Manish Kedia |
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Designation : |
Director |
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Address : |
20, Sagar Vihar, A G Khan Road, Worli, Mumbai- 400 063, Maharashtra, India |
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Date of Birth/Age : |
25.06.1968 |
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Date of Appointment : |
02.09.2002 |
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DIN No.: |
00023081 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 29.09.2011)
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Names of Shareholders |
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No. of Shares |
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Ibrox Estates Private Limited, India |
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2350 |
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Essar Investments Limited, India |
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11500 |
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Essar Properties Limited, India |
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1014648 |
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Essar Properties Limited, India and Lalit periwal |
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1 |
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Essar Properties Limited, India and N B Vyas |
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1 |
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Imperial Consultants and Securities Private Limited, India |
|
471499 |
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Imperial Consultants and Securities Private Limited, India and A K
Mussady |
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1 |
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|
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Total |
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1500000 |
(AS ON 30.09.2011)
Equity Shares Break – up
|
Category |
|
Percentage |
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Bodies corporate |
|
100.00 |
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Total
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|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Engaged in Property and Real Estate |
GENERAL INFORMATION
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No. of Employees : |
Not divulged by the management. |
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Bankers : |
· UCO Bank Limited, Worli Branch, Century Bhawan, Dr. A B Road, Mumbai-400025, |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institutions: |
· Indiabulls Financial Services Limited F-60, Malhotra Building, 2nd Floor, Cannaught Palace, New
Delhi – 110001, India |
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Auditors : |
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Name : |
Nisar and Kumar Chartered Accountant |
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Address : |
1305, Arcadia Building, Next to Earnest House, NCPA Marg, Nariman
Point, Mumbai – 400021, Maharashtra,
India |
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PAN No.: |
ANEPJ4413P |
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Holding Company : |
· Essar Properties Limited (EPRL) |
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Subsidiaries : |
· Futura Travels Limited (FTL) Marine Lines, Mumbai – 400 047, Maharashtra, India · Blue Arcade Properties Limited (BAL) Mumbai, Maharashtra, India |
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Fellow
Subsidiary Companies : |
· New Ambi Trading and Investments Private Limited · Golden Merchandisers Private Limited · Vadinar Properties Limited (VPL) · Bansari Investment and Finance Private Limited (BFL) · Kausar Engineers Limited (KEL) |
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Other related
parties where there have been transactions: Enterprises
Commonly controlled or influenced by major shareholders/directors of the
company : |
· Essar Steel Limited (ESTL) · Essar Shipping Ports and Logistics Limited (ESP&LL) · Essar Logistics Limited (ELL) · Vadinar Oil Terminal Limited (VOTL) · Essar Oil Field Services Limited (EOSL) · Essar Projects (India) Limited (EPIL) · Essar oil Limited (EOL) · Essar Power Limited (EPL) · Vadinar Power Company Limited (VPCL) · Essar Power MP Limited (EPOL (MP)) · Essar Agrotech Limited (EATL) · Trikaya Estates Limited (TKL) · Essar Infrastructure Services Limited (EISL) · Essar Information Technology Limited (EITL) · Imperial Factoring Services (IFS)-Partnership Firm · imperial Consultants and Securities Private Limited · AGC Networks Limited · Yojna Realities Private Limited · Essar Investments Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1500000 |
Equity Shares |
Rs.100/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1500000 |
Equity Shares |
Rs.100/- each |
Rs.150.000 Millions |
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|
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NOTE:
Of the above
1,014,650 Equity Shares are held by Essar Properties Limited, together with its
nominees the Holding Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
150.000 |
150.000 |
150.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2134.034 |
2111.604 |
2120.042 |
|
|
4] (Accumulated Losses) |
0.000 |
(3.939) |
(49.785) |
|
|
NETWORTH |
2284.034 |
2257.665 |
2220.257 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
219.318 |
556.836 |
|
|
2] Unsecured Loans |
1176.476 |
1201.811 |
4489.162 |
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|
TOTAL BORROWING |
1176.476 |
1421.129 |
5045.998 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
3460.510 |
3678.794 |
7266.255 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
653.444 |
687.497 |
723.875 |
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Capital work-in-progress |
28.217 |
0.000 |
0.000 |
|
|
|
|
|
|
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INVESTMENT |
2713.586 |
2616.694 |
191.565 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
15.206
|
369.096 |
2817.383 |
|
|
Sundry Debtors |
280.939
|
66.238 |
132.735 |
|
|
Cash & Bank Balances |
20.468
|
11.215 |
27.031 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
2547.851
|
116.538 |
3388.674 |
|
Total
Current Assets |
2864.464
|
563.087 |
6365.823 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
32.520 |
3.174 |
|
|
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Other Current Liabilities |
2766.681
|
185.310 |
|
|
|
Provisions |
0.000
|
0.000 |
0.000 |
|
Total
Current Liabilities |
2799.201
|
188.484 |
15.008 |
|
|
Net Current Assets |
65.263
|
374.603 |
6350.815 |
|
|
|
|
|
|
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3460.510 |
3678.794 |
7266.255 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
|
|
|
|
|
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Income |
454.627 |
2540.353 |
701.414 |
|
|
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Other Income |
0.802 |
58.674 |
1.676 |
|
|
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TOTAL (A) |
455.429 |
2599.027 |
703.090 |
|
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption Materials Changes Inventories |
353.890 |
2448.288 |
546.568 |
|
|
|
Manufacturing Service Costs |
11.668 |
11.979 |
11.526 |
|
|
|
Administrative Selling Other Expenses |
3.731 |
0.368 |
7.633 |
|
|
|
TOTAL (B) |
369.289 |
2460.635 |
565.727 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
86.140 |
138.392 |
137.363 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
14.376 |
53.581 |
58.896 |
|
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
71.764 |
84.811 |
78.467 |
|
|
|
|
|
|
|
|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
25.615 |
27.940 |
38.926 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
46.149 |
56.871 |
39.541 |
|
|
|
|
|
|
|
|
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Less |
TAX (H) |
11.342 |
11.025 |
0.350 |
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|
|
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|
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|
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|
PROFIT AFTER TAX
(G-H) (I) |
34.807 |
45.846 |
39.191 |
|
|
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|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(3.939) |
(49.785) |
(88.976) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
30.868 |
(3.939) |
(49.785) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
15.061 |
NA |
NA |
|
|
TOTAL IMPORTS |
15.061 |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
23.20 |
30.56 |
26.13 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
7.64
|
1.76 |
5.57 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.15
|
2.24 |
5.64 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.31
|
4.55 |
0.56 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.03 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.74
|
0.71 |
2.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.02
|
2.99 |
424.16 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
(Rs. In Millions) |
||
|
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Sundry Creditors |
|
|
|
|
- Creditors due small micro
enterprises |
0.000 |
0.000 |
NA |
|
- Creditors due others |
32.520 |
3.174 |
NA |
|
|
|
|
|
|
Total |
32.520 |
3.174 |
NA |
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Check list by info
Agents |
Available in Report (Yes/ No) |
|
|
|
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Year of Establishment |
Yes |
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Locality of the Firm |
Yes |
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Constitution of the Firm |
Yes |
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Premises details |
No |
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Type of Business |
Yes |
|
Line of Business |
Yes |
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Promoter’s Background |
Yes |
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No. of Employees |
No |
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Name of Person Contacted |
No |
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Designation of Contact person |
No |
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Turnover of Firm for last three years |
Yes |
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Profitability for last three years |
Yes |
|
Reasons for variation <> 20% |
----- |
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Estimation for coming financial year |
No |
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Capital in the business |
Yes |
|
Details of sister concerns |
Yes |
|
Major Suppliers |
No |
|
Major Customers |
No |
|
Payments Terms |
No |
|
Export/ Imports Details (If applicable) |
No |
|
Market Information |
----- |
|
Litigations that the firm/ Promoters Involved in |
----- |
|
Banking details |
Yes |
|
Banking Facility Details |
Yes |
|
Conduct of the Banking Account |
----- |
|
Buyer visit details |
----- |
|
Financials, if provided |
Yes |
|
Incorporation details is applicable |
Yes |
|
Last Accounts filed at ROC |
Yes |
|
Major Shareholders, if available |
Yes |
Note:
The registered address of the company has been shifted from Essar House,
14,
FORM 8:
|
Corporate
identity number of the company |
U70100MH1982PLC117644 |
|
Name of the
company |
ESSAR HOUSE LIMITED |
|
Address of the registered
office or of the principal place of
business in |
Essar House, 11, Keshavaro Khadye Marg, Malaxmi, Mumbai-400034, |
|
This form is for |
Creation of
charge |
|
Type of charge |
Immovable
Property |
|
Particular of
charge holder |
· Indiabulls Financial Services Limited F-60, Malhotra Building, 2nd Floor, Cannaught Palace, New
Delhi – 110001, India |
|
Nature of
description of the instrument creating or modifying the charge |
Deed of Mortgage
dated 5th August 2011 |
|
Date of
instrument Creating the charge |
05.08.2011 |
|
Amount secured by
the charge |
Rs.1500.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 13.50% p.a.
(Linked to HDFC CPLR as Sub 375 BPS presently HDFC CPLR is 17.25%) Terms of
Repayment As described in
the Loan Agreement Dated July 30, 2011 Margin NA Extent and
Operation of the charge The Charge in
favour of the Lender shall rank second and Subservient to the existing charge
in favour of the existing lender(s) of the Borrower(s) of Deed of Mortgage. Others NA |
|
Short particulars
of the property charged |
All those pieces
and parcels of Plot No. 1-C (part), Plot No. 2-A of the Mahalaxmi Flats
Estates, Scheme No. 66 of the Municipal Corporation of Greater Bombay situate,
lying and being in the registration district of Bombay forming part of New
(Laftan) survey nos D/3401 and bearing cadastral survey no 3/412 of Tardeo
Div., Mumbai, Bombay City Survey and assessed by the assessor and collector
of Municipal Taxes, 'D' Ward No. 3907 (2-2A-2B), Street No. 11-A Clarke Road
admeasuring around 4508.36 sq. mt. situated at Essar House, 11, KK Marg,
Mahalaxmi, Mumbai-400034 described in of the deed of mortgage dated 5th
August 2011. |
FIXED ASSETS:
· Land
· Building
· Plant and Machinery
· Office Equipments
· Computer
· 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,
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.51.44 |
|
|
1 |
Rs.81.96 |
|
Euro |
1 |
Rs.67.61 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.