MIRA INFORM REPORT

 

 

Report Date :

30.04.2012

 

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) :

31.03.2010

 

 

Date of Incorporation :

31.03.1993

 

 

Com. Reg. No.:

18-024724

 

 

Capital Investment / Paid-up Capital :

Rs.2.450 Millions

 

 

CIN No.:

[Company Identification No.]

U65993TN1993PTC024724

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Provider of Instrument and Security Services.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (20)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

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

 

The company can be considered for business dealings on a secured 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-Cooperative

 

LOCATIONS

 

Registered Office :

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

Tel. No.:

91-44-25351271/66601100

Fax No.:

91-44-66669511

E-Mail :

sgiri@essar.com

hpathak@essar.com

Website :

http://www.essar.com

 

 

Administrative Office:

K K Marg, Mumbai-400034, Maharashtra, India

 

 

DIRECTORS

 

As on 28.09.2010

 

Name :

Mr. Anand Sonthalia

Designation :

Director

Address :

C/1/1, Nand Niketan, Essar Townnship, Hazira, Surat – 394270, Gujarat, India

Date of Birth/Age :

18.10.1951

Date of Appointment :

14.03.1994

DIN No.:

00253874

 

 

Name :

Mr. Arun Kumar Musaddy

Designation :

Director

Address :

Panhar, Flat -4/B, Plot No.5, Khan Abdul Gafar Khan Road, Worli Sea Face, Worli, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

05.04.1945

Date of Appointment :

27.09.2002

DIN No.:

00055534

 

 

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

DIN No.:

00063535

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 28.09.2010

 

Names of Shareholders

 

No. of Shares

Essar Procurement Services Limited, India

(Formerly Essar Projects Limited)

 

244994

Essar Procurement Services Limited and A. K. Musaddy

 

1

Essar Procurement Services Limited and N B Vyas

 

1

Essar Procurement Services Limited and Suresh Sundaram

 

1

Essar Procurement Services Limited and Shishir Agarwal

 

1

Essar Procurement Services Limited and B. Shivakumar

 

1

Essar Procurement Services Limited and Girish Sathe

 

1

Total

 

245000

 

Equity Share Break up (Percentage of Total Equity)

 

As on 28.09.2010

 

Category

Percentage

Bodies corporate

100.00

Total

100.00

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Provider of Instrument and Security Services.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

Information declined by the management

 

 

Facilities :

Unsecured Loan

As on

31.03.2010

(Rs. in

Millions)

As on

31.03.2009

(Rs. in

Millions)

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

 

 

Series 1 Rs.29.489 Millions (Previous Year Rs.29.489 Millions)

2948.912

2948.912

Series 2 Rs.4.396 Millions (Previous Year Rs.4.396 Millions)

439.605

439.605

Series 3 Rs.0.010 Million (Previous Year Rs.0.010 Million)

1.000

1.000

Series 4 Rs.60.101 Millions (Previous Year Rs.60.101 Millions)

6010.168

6010.168

Series 5 Rs.3.741 Millions (Previous Year Rs.3.741 Millions)

374.081

374.081

Series 6 Rs.1.389 Millions (Previous Year Rs.1.389 Millions) 

138.820

138.820

Series 7 Rs.15.846 Millions (Previous Year Rs.15.846 Millions)

1584.577

1584.577

Series 7Rs.24.292 Millions (Previous Year Rs.24.292 Millions)

2429.281

0.000

Non Convertible Redeemable debenture of Rs.100 each

 

 

Series 1 Rs.168.277 Millions (Previous Year Rs. NIL)

16827.792

0.000

Series 2 Rs.80.000 Millions (Previous Year Rs. NIL)

8000.000

0.000

Incorporate Deposits

6329.031

0.000

Interest accrued and due

486.655

0.000

Deposit against leasing of equipments

0.000

84.950

Debenture to be issued on amalgamation

 

 

Compulsory Convertible Debenture of Rs.85 each

6034.262

0.000

31554000 (Previous Year Rs.NIL) 13.50% Non-Convertible debenture of Rs.100 each

3155.400

0.000

Total

54759.584

11582.113

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Nisar and Kumar

Chartered Accountants

Address :

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

Tel. No.:

91-22-23515912 / 40005394

Mobile No.:

91-22-66622066 / 66669511

PAN.:

AAGFN0889C

 

 

Holding Company  :
  • Essar Procurement Services Limited

CIN No. U45203TN1990PLC026337

 

 

Subsidiaries :
  • Essar Telecom Infrastructure Holdings Overseas Private Limited

CIN No. U67190GJ2000PTC038055

  • Karthik Financial Services Limited

CIN No. U67190TN1995PLC029804

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

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

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

2.450

2.450

2.450

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1301.254

335.566

335.566

4] (Accumulated Losses)

(3075.919)

2015.151

(2061.586)

NETWORTH

(1772.215)

(1677.135)

(1723.570)

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

54759.584

11582.113

11582.113

TOTAL BORROWING

54759.584

11582.113

11582.113

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

52987.369

9904.978

9858.543

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

0.716

35.752

41.567

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

52852.865

9988.909

8721.706

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000

0.000
0.000

 

Sundry Debtors
15.277

15.232
2205.548

 

Cash & Bank Balances
34.749

3.001
2.820

 

Other Current Assets
0.000

0.000
0.000

 

Loans & Advances
390.928

148.204
1301.478

Total Current Assets
440.954

166.437

3509.846

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

52.731

50.956

2409.971

 

Other Current Liabilities
254.435

268.916

4.605

 

Provisions
0.000

2.248

0.000

Total Current Liabilities
307.166

322.120

2414.576

Net Current Assets
133.788

(155.683)
1095.270

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

52987.369

9868.978

9858.543

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Lease Rent Income

0.000

7.300

7.300

 

 

Dividend Receipts

0.059

0.000

0.059

 

 

Interest Receipt

2.504

12.650

5.104

 

 

Interest on Income tax refund

0.000

0.000

7.909

 

 

Miscellaneous Income

0.007

0.005

0.007

 

 

Sundry Balance written back

0.242

2.293

1.837

 

 

Profit on sale of Investment

274.309

0.000

0.000

 

 

TOTAL                                     (A)

277.121

22.248

22.216

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Administrative and Other Expenses

6.253

0.056

0.917

 

 

Loss on sale of Investments

1.687

0.000

2.600

 

 

Provision for dimunition in value of Investments written back

0.000

0.000

(1.500)

 

 

TOTAL                                     (B)

7.940

0.056

2.017

 

 

 

 

 

Less

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

269.181

22.192

20.199

 

 

 

 

 

Less

INTEREST PAYMENT                                        (D)

498.260

0.000

0.000

 

 

 

 

 

 

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

(229.079)

22.192

20.199

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.000

5.816

6.762

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX (E-F)                   (G)

(229.079)

16.376

13.437

 

 

 

 

 

Less

TAX                                                                  (H)

(0.010)

5.942

(10.659)

 

 

 

 

 

 

PROFIT/(LOSS) AFTER TAX (G-H)                    (I)

(229.089)

10.434

24.096

 

 

 

 

 

 

Losses acquired amalgamation

(795.678)

0.000

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(2071.149)

(2081.583)

(2105.679)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

3095.916

(2071.149)

(2081.583)

 

 

 

 

 

 

Earnings/(loss) Per Share (Rs.)

 

 

 

 

Basic

(935.06)

42.59

98.35

 

Diluted

(935.06)

0.01

0.02

]

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
(82.67)

46.90

108.46

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(82.66)

73.61

0.60

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
51.87

8.10
0.38

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.13

(0.01)
(0.01)

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
31.07

(7.10)
(8.12)

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
1.44

0.52
1.45

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

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

No

9) Name of person contacted

No

10) Designation of contact person

No

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

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter

--

23) Banking Details

No

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

No 

30) Major Shareholders, if available

Yes

 

SUNDRY CREDITORS DETAILS

 

Particulars

31.03.2010

Rs. in Millions

31.03.2009

Rs. in Millions

31.03.2008

Rs. in Millions

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

52.731

50.956

2409.971

 

Note: The registered office address has been changed from 56, New No.77, C.P. Ramaswamy Road, Abhiramapuram, Chennai – 600018, Tamilnadu, India to Present address w.e.f 20.05.2010

 

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.52.68

UK Pound

1

Rs.85.12

Euro

1

Rs.69.38

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

MYI

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

2

--CREDIT LINES

1~10

1

--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

 

20

 

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.