MIRA INFORM REPORT

 

 

Report Date :

13.12.2012

 

IDENTIFICATION DETAILS

 

Name :

ESSAR PROJECTS (INDIA) LIMITED (w.e.f. 23rd September, 2009)

 

 

Formerly Known As :

ESSAR CONSTRUCTIONS (INDIA) LIMITED (w.e.f. 11th  January, 2007)

ESSAR CONSTRUCTIONS LIMITED (w.e.f. 17th July, 2000)

ESSAR STENA LIMITED

 

 

Registered Office :

Essar House, 11 - Keshavrao Khadye Marg, Mahalaxmi, Mumbai - 400034, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

01.09.1989

 

 

Com. Reg. No.:

11-053280

 

 

Capital Investment / Paid-up Capital :

Rs.309.995 Millions

 

 

CIN No.:

[Company Identification No.]

U99999MH1989PLC053280

 

 

PAN No.:

[Permanent Account No.]

AAACE2358J

 

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Engineering, Construction and Project Related Activity.

 

 

No. of Employees :

4000 [In Office + In Branches] Approximately

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (57)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

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

 

 

Maximum Credit Limit :

USD 40000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a wholly-owned subsidiary of Essar Projects Limited, which is the holding company for project execution initiatives of the Essar Group.

 

It is a well established company having fine track. The latest financials are not made available.

 

As per previous year’s, the company is found to be performing well.

 

Trade relations are reported as decent. Business is active. Payment terms are regular and as per commitments.

 

The company can be considered good 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.

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Short Term Bank Facility: A2+

Rating Explanation

Strong degree of Safety and low credit risk.

Date

23.05.2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Prashant

Designation :

Accountant

Contact No.:

91-22-66601100

Date :

12.12.2012

 

 

LOCATIONS

 

Registered/ Corporate/ Head Office :

Essar House, 11-Keshavrao Khadye Marg, Mahalaxmi, Mumbai - 400034, Maharashtra, India

Tel. No.:

91-22-66601100/ 24950606/ 50011100

Fax No.:

91-22-66601809/ 24954324

E-Mail :

corporatecommunications@essar.com

brijesh.shah@essar.com

vikasparadkar@yahoo.com

Website :

http://www.essar.com

 

 

Branch Office :

Located at:

 

·         Mumbai

·         Ahmedabad

·         Chennai

·         Hazira

·         New Delhi

·         Vadinar

·         Visakhapatnam

 

 

Overseas Offices:

Located at:

 

·         Indonesia

·         China

·         United Kingdom

·         Canada

·         USA- New York

·         United Arab Emirates- Dubai

·         Kenya

 

 

DIRECTORS

 

(AS ON 14.09.2012)

 

Name :

Mr. Alwyn Keith Bowden

Designation :

Managing Director

Address :

Casa Grande Tower No.1, Flat No.1803, 18th Floor, Lower Parel, Mumbai – 400013, Maharashtra, India

Date of Birth/Age :

06.12.1957

Date of Appointment :

18.07.2011

DIN No.:

01349295

 

 

Name :

Mr. Vishnoo Narayan Paradkar

Designation :

Whole time Director

Address :

#1302, Rose Regencey Garden, Sector-6, Kharghar, Navi Mumbai-410 210, Maharashtra, India

Date of Birth/Age :

06.10.1948

Date of Appointment :

08.09.2009

DIN No.:

00078728

 

 

Name :

Mr. Krishnamurthy Nagaraj Tirumakudlu Narasipur

Designation :

Director

Address :

#32, Plot No.50, temple View, Bull Temple Road, Basavangudi, Bangalore-560 004, Tamilnadu, India

Date of Birth/Age :

21.07.1934

Date of Appointment :

01.03.2001

DIN No.:

00048680

 

 

Name :

Mr. Venkataraman Venkatesan

Designation :

Director

Address :

F-401, The Atrium, Old No.49, New No.22, Kalakshetra Road, Thiruvanmiyur, Chennai- 600 041, Tamilnadu, India

Date of Birth/Age :

09.10.1939

Date of Appointment :

01.03.2001

DIN No.:

00004010

 

 

Name :

Mr. Mahesh Sitaram Ambegaonkar

Designation :

Whole time Director

Address :

B-501, Golden Willows, Vasant Garden, Near Swapna Nagari, Mulund (West), Mumbai-400 080, Maharashtra, India

Date of Birth/Age :

05.08.1946

Date of Appointment :

26.12.2008

DIN No.:

02341599

 

 

Name :

Mr. Tapash B. Bhattacharya

Designation :

Whole time Director

Address :

Planet Godrej, Tower-3, 21st Floor, 030, K.K. Marg, Sant Gadge Maharaj Chowk, Mumbai-400 011, Maharashtra, India

Date of Birth/Age :

11.02.1959

Date of Appointment :

26.12.2008

DIN No. :

02339966

 

 

Name :

Mr. Govinda Raghavan Venkatraman

Designation :

Director

Address :

Flat No. 171/172, 17th Floor, Kalpataru, Residency,  Sion Circle, Sion (East), Mumbai – 400022, Maharashtra., India

Date of Birth/Age :

16.07.1945

Date of Appointment :

18.07.2011

DIN No. :

00008683

 

 

KEY EXECUTIVES

 

Name :

Mr. Brijesh Manmohan Shah

Designation :

Company Secretary

Address :

Plot No.328, Swastik Park, Flat No.202, A Wing, 12th Road, Jawahar Nagar, Goregaon (West), Mumbai-400 062, Maharashtra, India

Date of Birth/Age :

09.05.1978

Date of Appointment :

31.10.2008

PAN No.:

AUDPS8448M

 

 

Name :

Mr. Prashant

Designation :

Accountant

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 14.09.2012)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Essar Projects Limited, UAE

 

123998000

Mohan Singh Manral Nominee Essar Projects Limited, UAE

 

1

Brijesh Shah Nominee Essar Projects Limited, UAE

 

1

Prasad V. Devata Nominee Essar Projects Limited, UAE

 

1

Vasant Mavji Savla Nominee Essar Projects Limited, UAE

 

1

Amitabh P. K. Ghosh Nominee Essar Projects Limited, UAE

 

1

Gulbchand R. Parek Nominee Essar Projects Limited, UAE

 

1

 

 

 

Total

 

 

123998006

 

 

(AS ON 29.09.2012)

Equity Shares Break – up

 

Category

 

Percentage

 

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

100.00

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Engineering, Construction and Project Related Activity.

 

 

GENERAL INFORMATION

 

No. of Employees :

4000 [In Office + In Branches] Approximately

 

 

Bankers :

·         IDBI Bank Limited

IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India

 

·         Yes Bank Limited,

9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India

 

·         Bank of India,

Mumbai Large Corporate Branch, 4th Floor, BOI Building, 70/ 80, M. G. Road, Fort, Mumbai – 400 001, Maharashtra, India

 

·         Dena Bank, (Lead Bank),

Corporate Business Branch, C-10, G-Block, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051, Maharashtra, India

 

·         United Bank of India

Building 25, Sir. P. M. Road, ort, Mumbai —400 001, Maharashtra, India

 

·         ICICI Bank Limited,

ICICI Towers, Bandra Kurla Complex, Bandra (East), Mumbai — 400 051, Maharashtra, India

 

·         Export- Import Bank of India,

Center One Building, Floor 21, World Trade Centre, Complex, Cuffee Parade, Mumbai – 400005, Maharashtra, India

 

·         Central Bank of India

Corporate Finance Branch, 1st Floor, MMO Building, Fort, Mumbai – 400023, Maharashtra, India

 

·         Union bank of India

·         ING Vysya Bank Limited

·         Corporation Bank

·         Lakshmi Vilas Bank Limited

·         UCO Bank

·         Andhra Bank

·         Allahabad Bank

 

 

Facilities :

Secured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

 

 

 

Rupee Term Loans Banks Secured

9594.454

2450.015

Rupee Term Loans Others Secured

3826.409

6820.363

 

 

 

Total

 

13420.863

9270.378

 

Note:

 

i) Rupee term loans are secured by: a) First Charge on the entire Fixed Assets of the Company, present and future b) Second Charge on the entire Current Assets of the Company present and future, subject to the prior charge of the bankers for working capital facilities. Includes Cash Credit facilities Rs.2049.826 Millions Buyers Credit / Suppliers Credit facilities Rs.211.813 Millions and Suppliers Credit facility loan from Non Banking Finance Company Rs.1564.770 Millions.

 

(ii) Cash Credit facilities are secured by : (a) First Pari Passu charge amongst Consortium banks by way of Hypothecation of all the current assets of the Company viz Stock of Raw Materials, Work in Progress, Stores and Spares, Packing materials, Bills Receivables, Book Debts and all other movables of the Company, both present and future and Second pari passu charge on all the Fixed Assets of the Company including Plant and Machinery, Furnitures and Fixtures, Office Equipments and Commercial Vehicles, both present and future, excluding the charge on specific equipments / assets exclusively charged to Term Lenders. (b) Collateral Security by way of Corporate Guarantee of Essar Investments Limited.

 

(iii) Buyers Credit / Suppliers Credit from banks is secured by Pari Passu charge on assets imported under this facility.

 

(iv) Loan from a Non-Banking Finance Company is secured by assets acquired under this facility.

 

Unsecured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

 

 

 

Rupee Term Loans Bank Unsecured

0.000

110.512

Rupee Term Loans Others Unsecured

11100.600

7675.705

Foreign Currency Loans Banks Unsecured

0.000

33.770

 

 

 

Total

 

11100.600

7819.987

 

Note:

 

Mobilisation advance received against Contracts

 

 

 

Banking Relations :

--

 

 

Financial Institutions:

·         SREI Equipment Finance Private Limited

‘Vishwakarma’, 86C, Topsia Road, Kolkata – 700046, West Bengal, India  

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

12, Dr. A. B. Road, Opposite Shivsagar Estate, Worli, Mumbai- 400 018, Mumbai- 400 018, Maharashtra, India

Tel. No.:

91-22-66679000

Fax No.:

91-22-66679025

Pan No. :

AACFD4851A

 

 

Solicitors :

 

Name :

Rajani Associates

Chartered Accountants

Address:

F-4, Panchsheel, 53, “C”, Road, Churchgate, Mumbai – 400020, Maharashtra, India

 

 

Holding Company:

·         Essar Projects Limited, Dubai

·         Essar Global Limited, Cayman Island (Holding company of Essar Projects Limited, Dubai)

 

 

Subsidiary  Company:

·         Essar Offshore Subsea Limited, India

·         Essar Constructions Overseas Limited, Mauritius (ECOL)

·         Essar Project Management Company Limited, Dubai(from 2nd March 2011) (Subsidiary of ECOL) (EPMC)

·         Essar Project Management Consultants Limited, India (from 2nd March 2011) (Subsidiary of EPMC)

·         Essar Project (PNG) Limited (Subsidiary of ECOL)

·         Krios Holding Private Limited

·         Kadmos Holding Private Limited

·         Essar Project (Singapore) Limited

·         Essar Constructions Limited, Dubai (from 2nd March 2011) (Subsidiary of EPMC)

 

 

Fellow Subsidiaries

·         Essar Constructions Limited, Dubai

·         Essar Project Management Company Limited (EPMC), Dubai

·         Essar Project Management Consultants Limited, India (Subsidiary of EPMC)

 

 

Other major related parties

·         Essar Steel Limited

·         Essar House Limited

·         Essar Oil Limited

·         Essar Procurement Services Limited (Formerly Essar Projects Limited)

·         Essar Shipping Limited

·         Essar Power Limited

·         Clickforsteel Services

·         Futura Travels Limited

·         Essar Information Technology Limited

·         Vadinar Oil Terminal Limited

·         Vadinar Power company Limited

·         Essar Power MP Limited

·         Bhander Power Limited

·         Vadinar Properties Limited

·         Essar Investments Limited

·         Essar SEZ Hazira Limited

·         Essar House Services Limited, India

·         Securities Limited

·         Aegis Limited

·         Essar Power Gujarat Limited

·         Essar Logistic Limited

·         Arkay Holding Limited

·         Essar Properties Limited

·         Global Supplies (UAE) FZE

·         Dubai, Professional Equipment Suppliers Limited (Formerly Essar Subsea Limited),

·         Dubai, Trikaya Investments Limited

·         Global Supplies (India) Limited

·         Essar Holdings Limited

·         Essar Infrastructure Services Limited

·         Sinter-Keramos and Composites Peivate Limited

·         The Mobile Store Limited

·         Essar Securities Limited

·         Essar Bulk Terminal Limited

·         Essar Bulk Terminal (Salaya) Limited

·         Essar Bulk Terminal Paradeep Limited

·         Essar Oilfield Services Limited – Mauritius,

·         Essar Power Transmission Limited

·         Essar Power (Orissa) Limited

·         Vadinar Port and Terminal Limited

·         Essar Power (Jharkhand) Limited

·         Essar Steel Minnesota LLC,

·         Imperial Consultants and Securities Limited

·         Paprika Properties India Private Limited

·         Essar Power Salaya Limited

·         Essar Power Hazira Limited

·         Navbharat Power Private Limited

·         Frontier Leasing and Finance Limited

·         Essar Oilfield Service Limited

 

 

CAPITAL STRUCTURE

 

(AS ON 14.09.2012)

 

Authorised Capital : Rs.1300.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs.1239.980 Millions

 

 

(AS ON 31.03.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000000

Equity Share

Rs.10/- each

Rs.500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

30999507

Equity Share

Rs.10/- each

Rs.309.995 Millions

 

 

 

 

 

 

 

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

309.995

309.995

309.995

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

9473.893

6965.632

5690.210

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

9783.888

7275.627

6000.205

LOAN FUNDS

 

 

 

1] Secured Loans

13420.863

9270.378

10761.231

2] Unsecured Loans

11100.600

7819.987

7870.868

TOTAL BORROWING

24521.463

17090.365

18632.099

DEFERRED TAX LIABILITIES

325.250

358.129

335.996

 

 

 

 

TOTAL

34630.601

24724.121

24968.300

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

8346.348

8836.048

9608.748

Capital work-in-progress

2020.181

58.959

132.827

 

 

 

 

INVESTMENT

2674.462

2199.382

449.500

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
7876.996
6490.011
6283.862

 

Sundry Debtors
9934.157
5336.987
5096.695

 

Cash & Bank Balances
2790.657
1500.069
2488.153

 

Other Current Assets
0.000
0.000
0.000

 

Loans & Advances
39747.191
26536.444
19575.633

Total Current Assets
60349.001
39863.511
33444.343

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditor
12785.165
10250.366
5598.968

 

Other Current Liabilities
25867.084
15842.640
12988.627

 

Provisions
107.142
140.773
79.523

Total Current Liabilities
38759.391
26233.779
18667.118

Net Current Assets
21589.610
13629.732
14777.225

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

34630.601

24724.121

24968.300

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

69370.841

45037.452

34024.303

 

 

Other Income

2043.912

1021.190

896.314

 

 

TOTAL                                     (A)

71414.753

46058.642

34920.617

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption Materials Changes Inventories

45145.535

28613.112

 

 

Manufacturing Service Costs

15174.260

9679.006

 

 

 

Employee Related Expenses

2244.120

1506.129

30814.376

 

 

Administrative, Selling and Other Expenses

2004.194

1445.663

 

 

 

TOTAL                                     (B)

64568.109

41243.910

30814.376

 

 

 

 

 

Less

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

6846.644

4814.732

4106.241

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

1794.499

1501.522

1506.461

 

 

 

 

 

 

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

50.52.145

3313.210

2599.780

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1309.922

1347.906

1053.395

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

3742.223

1965.304

1546.385

 

 

 

 

 

Less

TAX                                                                  (H)

1233.962

689.882

662.465

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

2508.261

1275.422

883.920

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

3968.401

2692.979

1755.817

 

 

 

 

 

Add

Adjustment towards Foreign Exchange variation capitalized 

0.000

0.000

53.242

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

6476.662

3968.401

2692.979

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Contract Income

359.444

--

186.145

 

 

Equipment Hiring

--

167.740

294.638

 

TOTAL EARNINGS

359.444

167.740

480.783

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Components and Spares Parts

386.621

866.138

1306.495

 

 

Capital Goods

175.580

40.312

2126.133

 

TOTAL IMPORTS

562.201

906.450

3432.628

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

41.14

29.16

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
3.51
2.77
2.53

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)
5.39
4.36
4.54

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
5.45
4.83
3.59

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.38
0.27
0.26

 

 
 
 
 

Debt Equity Ratio

(Total Liability/Networth)

 
6.47
5.95
6.22

 

 
 
 
 

Current Ratio

(Current Asset/Current Liability)

 
1.56
1.52
1.79

 

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2011

 

31.03.2010

31.03.2009

 

(Rs. In Millions)

 

 

 

 

Sundry Creditors

 

 

 

-       Creditors due small micro Enterprises

54.766
52.074
5598.968

-       Creditors due others

12730.399

10198.292

 

 

 

 

 

Total

 
12785.165
10250.366
5598.968

 

 

Sr. No.

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

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

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 involved in

-----

23]

Banking Details

Yes

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

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

REVIEW OF OPERATIONS

 

Total Revenue of the Company rose by more than 55 % from Rs.46060.000 Millions in FY 2009-10 to Rs.71410.000 Millions in FY 2010-11. The increase was mainly on account of substantial construction and procurement activities carried out under the Company’s ever increasing order book size.

 

The Company continued to sustain EBIDTA margin despite increase in certain input costs by continuously focusing on enhancing its operational efficiencies and reduction in finance costs. The EBIDTA has increased substantially from Rs.4814.700 Millions in FY 2009-10 to Rs.6846.600 Millions in FY 2010-11.

 

Profit before Tax has increased by 90 % from Rs.1965.300 Millions in FY 2009-10 to Rs.3742.200 Millions in FY 2010-11.

 

The Company has provided Rs.1309.900 Millions (Previous Year Rs.1347.900 Millions) for depreciation and Rs.1234.000 Millions (Previous Year Rs.689.800 Millions) towards Current Income Tax.

 

 

INDUSTRY OUTLOOK AND BUSINESS PLAN

 

The Company has grown and diversified into a fully fledged world class EPC Company across multiple sectors including Hydrocarbon, Offshore, Power, Steel and Infrastructure.

 

During the current year, the Company has bagged some key contract awards in the external market which offer a good springboard to further leverage its experience and expertise in a market that is forecast to attract robust investment across multiple sectors in the coming years.

 

The Company is on an aggressive growth path and is consolidating its India specific portfolio and actively establishing its presence in key markets across Middle East, Africa and East Asia. This has been achieved by investing substantial Marketing and PR effort to convince key 3rd party Clients of the track-record and experience of executing and delivering Essar Group’s investment, especially in the last decade.

 

 

CONTINGENT LIABILITIES:

 

Contingent Liabilities in respect of:

 

Particulars

31.03.2011

(Rs. In Millions )

31.03.2010

(Rs. In Millions )

31.03.2009

(Rs. In Millions )

 
 
 
 

Guarantees given by the company on behalf of subsidiary
13456.780
3960.262
1110.262

disputed tax liabilities relating to sales service and income
 
 
 

Disputed Sales tax

10.903
196.804
340.087

Disputed Income tax

11.377
10.391
--

Disputed Excise Duty demand
0.899
0.899
0.000

Disputed Service Tax

68.160
64.968
119.984

other disputed tax liabilities
0.183
0.183
2.065

Claims against the company not acknowledged as debts
434.824
491.450
403.517

 

 

FIXED ASSETS:

 

·         Land and Building

·         Plant and Machinery

·         Furniture and Fixture

·         Office Equipments

·         Motor Cars, Jeeps, etc.

·         Commercial Vehicles

·         Software acquired

 

 

 

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.54.32

UK Pound

1

Rs.87.36

Euro

1

Rs.70.36

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--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

 

57

 

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.