MIRA INFORM REPORT

Report Date :

11.05.2012

IDENTIFICATION DETAILS

Name :	ESSAR LOGISTICS LIMITED
Formerly Known As :	ESSAR LOGISTICS PRIVATE LIMITED
Registered Office :	Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400034, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.10.2004
Com. Reg. No.:	11-149214
Capital Investment / Paid-up Capital :	Rs.730.000 Millions
CIN No.: [Company Identification No.]	U63000MH2004PLC149214
TAN No.: [Tax Deduction & Collection Account No.]	MUME05750D
PAN No.: [Permanent Account No.]	AABCE4028N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing Logistics Services.
No. of Employees :	130 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 7800000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Essar Shipping Limited. It is a well established company having satisfactory track. 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 PARTED BY

Name :	Mr. Amit
Designation :	Finance Manager
Contact No.:	91-261-2872400
Date :	10.05.2012

LOCATIONS

Registered/ Corporate Office :	Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400034, Maharashtra, India
Tel. No.:	91-22-50011100/ 66601100
Fax No.:	91-22-23544312/ 66601809
E-Mail :	manoj.contractor@essar.com amit.agrawal@essar.com habib.jan@essar.com
Website :	http://www.essar.com
Location :	Owned
Branch Office :	Located at: · Mumbai · Ahmedabad · Chennai · Hazira · New Delhi · Vadinar · Vishakhapatnam
Overseas Offices :	Located at: · Indonesia · China · United Kingdom · United Arab Emirates – Dubai · Canada · USA – New York · Kenya

DIRECTORS

(AS ON 06.09.2011)

Name :	Mr. Arun Kumar Musaddy
Designation :	Whole Time Director
Address :	Flat No. 4B, Panhar Worli Sea Face Khan Abdul Gaffar Khan Road, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	05.04.1945
Date of Appointment :	25.10.2004
DIN No.:	00055534
Name :	Mr. Ramnath Bansal
Designation :	Director
Address :	B-365, New Friends Colony, New Delhi – 110065, Delhi, India
Date of Birth/Age :	15.07.1930
Date of Appointment :	18.02.2008
DIN No.:	00270908
Name :	Mr. Ramakrishnan Aduthurai Perumalkoil Ramachandran
Designation :	Director
Address :	Flat 6-A, Siddhi Apartment, 15-A, Shankar Ghanekar Marg, Opposite IDBI Bank, Prabhadevi, Mumbai – 400028, Maharashtra, India
Date of Birth/Age :	07.02.1957
Date of Appointment :	01.02.2011
DIN No.:	00583765
Name :	Mr. Rahul Himatsingka
Designation :	Whole-time director
Address :	H-2-13, Nand Niketan, Essar Township, Hazira – 394270, Gujarat, India
Date of Birth/Age :	04.07.1972
Date of Appointment :	08.08.2011
DIN No.:	03633751

KEY EXECUTIVES

Name :	Mr. Amit
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 06.09.2011)

Names of Shareholders	No. of Shares
Essar Ports Limited, India	72999994
Essar Ports Limited, India Jointly With Raghavan Jagannathan	1
Essar Ports Limited, India Jointly With Ravi Vaidyanathan	1
Essar Ports Limited, India Jointly With Ashok Vaidyanathan	1
Essar Ports Limited, India Jointly With A R Ramakrishnan	1
Essar Ports Limited, India Jointly With Shivanna A Shetty	1
Essar Ports Limited, India Jointly With Raman Subramanian	1
Total	73000000

(AS ON 30.09.2011)

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 :	Providing Logistics Services.
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers

· Essar Steel Limited

· Essar Oil Limited

No. of Employees :

130 (Approximately)

Bankers :

· Kotak Mahindra Bank Limited,

36-38, Nariman Bhavan, 227 D, Nariman Point, Mumbai – 40021, Maharashtra, India

· State Bank of India

Hazira Branch, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans others secured	344.300	394.900
Foreign currency loans banks secured	1562.800	1595.300
Loans taken for vehicles secured	25.000	43.900
Other debt secured	30.100	26.200
Interest accrued due other debt secured	0.000	0.300
Total	1962.200	2060.600
NOTE: Rupee term loan [converted into FCNR (B) facility] secured by first charge on barge unloader (principal amount falling due within one year Rs.21.100 Millions) Rupee term loan secured by first charge on cargo handling equipment (principal amount falling due within one year Rs.28.500 Millions)

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai, Maharashtra, India
PAN No.:	AABPR4652E
Holding Companies :	· Essar Global Limited, Cayman Island (ultimate holding company) · Essar Shipping and Logistics Limited, Cyprus · Essar Ports Limited (formerly known as Essar Shipping Ports and Logistics Limited), immediate holding company (upto 30th September, 2010) · Essar Shipping Limited, immediate holding company, earlier known as Essar Ports and Terminals Limited (w.e.f. 1st October r, 2010)
Fellow Subsidiaries :	· Essar Ports and Terminals Limited · Essar Oilfields Services Limited · Essar International Limited
Other Related Parties/ Affiliates :	· Essar Steel Limited · Vadinar Oil Terminal Limited · Essar Bulk Terminal Limited · Essar Shipping and Logistics (Panama) Inc. · Essar Oil Limited · Essar Projects (India) Limited · Futura Travels Limited · Essar Information Technology Limited · India Securities Limited · Essar SEZ Hazira Limited · Essar Ports and Terminals Limited · Essar House Services Limited · Essar Agrotech Limited · Essar Investments Limited · Essar Telecom Retail Limited · Essar Power M. P. Limited · Essar Power Gujarat Limited · Essar Power Limited · Essar Ports Limited · Power Company Limited · Essar House Limited · Essar Engineering Services Limited · Essar Infrastructure Services Limited · Essar Bulk Terminal Paradip Limited · Essar Dredging Limited · Essar O ffshore Sub Sea Limited · Essar Bulk Terminal (Salaya) Limited · Essar Oilfields Service Limited · Essar Power Jharkhand Limited · Essar Windpower Private Limited · Vadinar Ports and Terminal Limited · Essar Oilfields Services Limited · Essar Oilfields Services (India) Limited · Essar International Limited (upto 3 0 th September 2010) · Energy II Limited · Energy Transportation International Limited

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.10/- each	Rs.750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
73000000	Equity Shares	Rs.10/- each	Rs.730.000 Millions

NOTE:

(The above shares are being held by Essar Shipping Ports and Logistics Limited, the holding company and its nominees. Pursuant to a demerger of Essar Shipping Ports and Logistics Limited, the company is a subsidiary of Essar Shipping Limited w.e.f. 1st October 2010)

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		730.000	730.000	730.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1215.200	1084.300	846.100
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1945.200	1814.300	1576.100
LOAN FUNDS
1] Secured Loans		1962.200	2060.600	1931.100
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1962.200	2060.600	1931.100
DEFERRED TAX LIABILITIES		222.600	252.700	325.200
TOTAL		4130.000	4127.600	3832.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2148.700	2294.800	2510.700
Capital work-in-progress		49.100	150.000	0.000
INVESTMENT		0.000	0.100	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	106.400	122.400	97.700
	Sundry Debtors	2173.800	1461.400	1193.800
	Cash & Bank Balances	1270.200	983.000	754.000
	Other Current Assets	35.600	29.100	23.300
	Loans & Advances	998.000	1113.800	103.000
Total Current Assets		4584.000	3709.700	2171.800
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	2504.000	1842.000	741.600
	Other Current Liabilities	113.300	107.700	86.000
	Provisions	34.500	77.300	22.500
Total Current Liabilities		2651.800	2027.000	850.100
Net Current Assets		1932.200	1682.700	1321.700
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4130.000	4127.600	3832.400

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	12678.900	10701.000	9579.800
		Other Income	187.600	107.300	80.100
		TOTAL (A)	12866.500	10808.300	9659.900
Less	EXPENSES
		Manufacturing Services Costs	11849.300	9795.700	8305.500
		Administrative, Selling and Other Expenses	365.800	206.000	272.300
		TOTAL (B)	12215.100	10001.700	8577.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		651.400	806.600	1082.100
Less	FINANCIAL EXPENSES (D)		106.000	101.800	129.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		545.400	704.800	953.100
Less/ Add	DEPRECIATION/ AMORTISATION (F)		360.800	334.400	294.700
	PROFIT BEFORE TAX (E-F) (G)		184.600	370.400	648.400
Less	TAX (H)		53.700	132.200	225.100
	PROFIT AFTER TAX (G-H) (I)		130.900	238.200	433.300
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1084.300	846.100	426.100
Less	Exchange difference adjustment (net of deferred tax Rs. nil (previous year Rs.6.800 Millions))		0.000	0.000	13.300
	BALANCE CARRIED TO THE B/S		1215.200	1084.300	846.100
	EARNINGS IN FOREIGN CURRENCY
		Sea Freight	2.900	3.000	1.500
		Other Income	0.200	2.000	34.300
	TOTAL EARNINGS		3.100	5.000	35.800
	IMPORTS
		Components and Spares Parts	27.800	36.200	53.300
		Capital Goods	5.900	154.300	0.000
	TOTAL IMPORTS		33.700	190.500	53.300
	Earnings Per Share (Rs.)		1.79	3.26	5.94

Particulars	31.03.2012
Sales Turnover (Approximately)	13000.000

Expected Sales (2012-13): Rs.13500.000 Millions

The above information has been parted by Mr. Amit

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.02	2.20	4.48
Net Profit Margin (PBT/Sales)	(%)	1.46	3.46	6.79
Return on Total Assets (PBT/Total Assets}	(%)	2.74	6.17	13.85
Return on Investment (ROI) (PBT/Networth)		0.09	0.20	0.41
Debt Equity Ratio (Total Liability/Networth)		2.37	2.25	1.76
Current Ratio (Current Asset/Current Liability)		1.73	1.83	2.55

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
- Creditors Due Others	2504.000	1842.000	741.600
Total	2504.000	1842.000	741.600

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	Yes
Payments Terms	Yes
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

FINANCIAL ANALYSIS

During the year, the Company earned a Total Income of Rs.12866.500 Millions as compared to Rs.10808.200 Millions during the previous year, representing an increase of 19.04%. The increase in Total Income has been on account of increase in the revenue from surface logistics during the year.

The Net Profit for the year decreased to Rs.130.900 Millions as compared to Rs.438.100 Millions in the previous year.

The Directors are of the view that considering the requirement of capital for growth in a highly competitive industry and also the need to plough back the resources for expansion, no dividend is recommended.

OPERATIONS

The Company has been providing wet bulk and dry bulk logistics services in the areas of stevedoring, lighterage, trans-shipment, sea and land transportation and project cargo handling to various clients.

During the year, the Company handled about 16.40 mmt (million metric tonne) of cargoes. This was possible due to effective utilisation of the assets and by using systems which helped in vehicle planning, placement and movement.

HOLDING COMPANY

Pursuent to the Scheme of Arrangement of Essar Ports Limited (formerly known as Essar Shipping Ports and Logistics Limited), The Company became 100% subsidiary of Essar Shipping Limited.

CONTINGENT LIABILITIES

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
Bills discounted with banks/ Non-banking financial institutions	860.000	945.600
Guarantees given by banks	0.000	6.100
Disputed service tax demand	520.100	0.000

TRADE REFERENCE:

· Essar Steel Limited

· Essar Oil Limited

FORM 8:

Corporate identity number of the company	U63000MH2004PLC149214
Name of the company	ESSAR LOGISTICS LIMITED
Address of the registered office or of the principal place of business in India of the company	Essar House11 K K Marg, Mahalaxmi, Mumbai – 400034, Maharashtra, India sraman@essar.com
This form is for	Creation of charge
Type of charge	Movable Property (not being pledge)
Particular of charge holder	Dhanlaxmi Bank Limited Dhanalakshmi Bank Building, Naickanal, Trichur – 680001, Kerala, India share@dhanbank.co.in
Nature of instrument creating charge	Deed of General Hypothecation dated February 18, 2011 executed between the Company and Dhanlaxmi Bank Limited for hypothecation of 15 Nos. AMW make fully build Trucks model 4923 TR chassis with 3 AXLE 40 Ft. Flat Bedx Trailor.
Date of instrument Creating the charge	18.02.2011
Amount secured by the charge	Rs.49.102 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest 10.75% fixed. Terms of Repayment Tenure of loan - 60 No. of instalments - 59 at Rs.1.076 Millions on 7th of each month. Margin Nil Extent and Operation of the charge Hypothecation of 15 Nos. AMW make fully build Trucks model 4923 TR chassis with 3 AXLE 40 Ft. Flat Bedx Trailor .
Short particulars of the property charged	Hypothecation of 15 Nos. AMW make fully build Trucks model 4923 TR chassis with 3 AXLE 40 Ft. Flat Bedx Trailor Description of the Hypothecated assets.

FIXED ASSETS:

· Furniture and Fixtures

· Plant and Machinery

· Office Equipment

· Vessels

· Vehicles

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.53.34
UK Pound	1	Rs.86.11
Euro	1	Rs.69.07

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.