1. Summary Information

 

 

Country

India

Company Name

ESSAR PROJECTS (INDIA) LIMITED

Principal Name 1

Mr. Venkataraman S. Venkatesan

Status

Good

Principal Name 2

Mr. Govinda Raghavan Venkatraman

 

 

Registration #

11-053280

Street Address

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

Established Date

01.09.1989

SIC Code

--

Telephone#

91-22-66601100

Business Style 1

Undertaking and Executing Projects

Fax #

91-22-66601809

Business Style 2

--

Homepage

www.essar.com

Product Name 1

--

# of employees

Not Available

Product Name 2

--

Paid up capital

Rs. 1,239,980,280/-

Product Name 3

--

Shareholders

Foreign holdings – 100%

Banking

IDBI Bank Limited

Public Limited Corp.

No

Business Period

24 Years

IPO

No

International Ins.

-

Public Enterprise

No

Rating

A (57)

Related Company

Relation

Country

Company Name

CEO

Holding Company

Dubai

Essar Projects Limited

--

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2012

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

51,804,900,000

Current Liabilities

52209,300,000

Inventories

20,481,800,000

Long-term Liabilities

28463,100,000

Fixed Assets

10,475,800,000

Other Liabilities

690,800,000

Deferred Assets

0,000

Total Liabilities

 81,363,200,000

Invest& other Assets

11,802,200,000

Retained Earnings

11,961,500,000

 

 

Net Worth

13,201,500,000

Total Assets

94,564,700,000

Total Liab. & Equity

94,564,700,000

 Total Assets

(Previous Year)

73,500,700,000

 

 

P/L Statement as of

31.03.2012

(Unit: Indian Rs.)

Sales

88,198,000,000

Net Profit

2,911,000,000

Sales(Previous yr)

69,295,700,000

Net Profit(Prev.yr)

2,508,300,000

MIRA INFORM REPORT

 

 

Report Date :

24.08.2013

 

IDENTIFICATION DETAILS

 

Name :

ESSAR PROJECTS (INDIA) LIMITED (w.e.f. 23.09.2009)

 

 

Formerly Known As :

ESSAR CONSTRUCTIONS (INDIA) LIMITED (w.e.f. 11.01.2007)

 

ESSAR CONSTRUCTIONS LIMITED (w.e.f. 17.07.2000)

 

ESSAR STENA LIMITED

 

 

Registered Office :

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

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

01.09.1989

 

 

Com. Reg. No.:

11-053280

 

 

Capital Investment / Paid-up Capital :

Rs.1240.000 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 :

Subject is engaged in the business of undertaking and executing projects involving Industrial plants, civil and irrigation projects, laying of pipelines (both onshore and offshore), marine constructions and highways and expressways.

 

 

No. of Employees :

Not Available

 

 

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 52800000

 

 

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 record.

 

Financial position of the company appears to be sound. 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.

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

A2 (Short term bank facilities)

Rating Explanation

Strong degree of safety and low credit risk

Date

11.02.2013

 

Rating Agency Name

CARE

Rating

A – (Long term bank facilities)

Rating Explanation

Adequate degree of safety and low credit risk.

Date

11.02.2013

 

 

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.

 

 

LOCATIONS

 

Registered / Corporate 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 :

www.essar.com

 

 

Branch Office :

Essar Technopark, Old Swan Mill Compound Mark, Kurla (West), Mumbai -400070, Maharashtra, India

 

 

Other Branch Office :

Located at:

 

·         Ahmedabad

·         Chennai

·         Hazira

·         New Delhi

·         Vadinar

·         Visakhapatnam

 

 

Overseas Offices:

Located at:

 

·         Africa

·         Canada

·         Czech Republic

·         China

·         Indonesia

·         Kenya

·         Korea

·         Madagascar

·         Mauritius

·         United Kingdom

·         Qatar

·         UAE

·         USA

·         Vietnam

 

 

DIRECTORS

 

As on 14.09.2012

 

Name :

Mr. Venkataraman S. Venkatesan

Designation :

Director

Address :

F-401, The Atrium, Old No.49, New No.22, Kalakshetra Road, Thiruvanmiyur, Chennai- 600041, Tamilnadu, India

Date of Birth/Age :

09.10.1939

Date of Appointment :

01.03.2001

DIN No.:

00004010

 

 

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

 

 

Name :

Mr. Krishnamurthy Nagaraj Tirumakudlu Narasipur

Designation :

Director

Address :

#32, Plot No.50, temple View, Bull Temple Road, Basavangudi, Bangalore-560004, Karnataka, India

Date of Birth/Age :

21.07.1934

Date of Appointment :

01.03.2001

DIN No.:

00048680

 

 

Name :

Mr. Vishnoo Narayan Paradkar

Designation :

Whole time Director

Address :

#1302, Rose Regencey Garden, Sector-6, Kharghar, Navi Mumbai-410210, Maharashtra, India

Date of Birth/Age :

06.10.1948

Date of Appointment :

08.09.2009

DIN No.:

00078728

 

 

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

Qualification :

BE - Civil (Swansea University (UK))

Date of Appointment :

18.07.2011

PAN No.:

AUEPB7254M

DIN No.:

01349295

 

 

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-400011, Maharashtra, India

Date of Birth/Age :

11.02.1959

Qualification :

PG Diploma in Management

Date of Appointment :

26.12.2008

PAN No.:

AAPPB6093B

DIN No.:

02339966

 

 

Name :

Mr. Mahesh Sitaram Ambegaonkar

Designation :

Whole time Director

Address :

B-501, Golden Willows, Vasant Garden, Near Swapna Nagari, Mulund (West), Mumbai-400080, Maharashtra, India

Date of Birth/Age :

05.08.1946

Qualification :

Mechanical Engineer

Date of Appointment :

26.12.2008

PAN No.:

AACPA4652N

DIN No.:

02341599

 

 

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-400062, Maharashtra, India

Date of Birth/Age :

09.05.1978

Date of Appointment :

31.10.2008

PAN No.:

AUDPS8448M

 

 

Name :

Mr. Anand Sonthalia

Designation :

Chief Executive Officer - EHES

 

 

Name :

Mr. Adluru Amarnath

Designation :

Chief Executive Officer-Minerals and Metals SBU

 

 

Name :

Mr. Asis Gupta

Designation :

Sr. Vice President

 

 

Name :

Mr. Ravindran Kayarat

Designation :

Sr.Vice President - Hydrocarbon

 

 

Name :

Mr. S. N. Eachampati

Designation :

Chief Eexecutive Officer-Power SBU

 

 

MAJOR SHAREHOLDERS

 

As on 14.09.2012

 

Names of Shareholders

No. of Shares

Essar Projects Limited, UAE

123998000

Mohan Singh Manral Nominee Essar Projects Limited, UAE

4

Brijesh Manmohan Shah Nominee Essar Projects Limited, UAE

8

Prasad V. Devata Nominee Essar Projects Limited, UAE

4

Savla Mavji Vasant Nominee Essar Projects Limited, UAE

4

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

4

Gulbchand R. Parek Nominee Essar Projects Limited, UAE

4

TOTAL

123998028

 

As on 14.09.2012

 

Equity Shares Break Up

Percentage of Holding

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

TOTAL

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of undertaking and executing projects involving Industrial plants, civil and irrigation projects, laying of pipelines (both onshore and offshore), marine constructions and highways and expressways.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

·         Union Bank of India

·         ICICI Bank Limited

·         Corporation Bank Limited

·         ING Vysya Bank

·         Yes Bank Limited

·         UCO Bank Limited

·         HDFC Bank Limited

·          Export-Import Bank of India

 

 

Facilities :

SECURED LOANS

 

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

Term Loans

 

 

From banks

9375.000

7278.800

From Non Banking Finance Company

3566.400

1564.700

Pre/ post shipment credit from Bank

3162.900

637.700

 

 

 

SHORT TERM BORROWINGS

 

 

From bank

 

 

Cash Credit facilities

3801.500

1410.300

Bill discounting facility (Acceptances against Letter of Credit)

4559.200

1595.200

Other loans

3998.100

1461.800

TOTAL

28463.100

13948.500

 

Note :

 

Term loan from UCO bank is secured by first charge on entire fixed assets of the Company both present and future and second charge on entire current assets of the Company both present and future, subject to the prior charge of the bankers for short term working capital facilities.

 

Vehicle loan from HDFC Bank is secured by exclusive charge on vehicle purchased under the said credit facilities.

 

Rupee term loan facility of Rs. 1025.600 million from Non Banking Finance Company is secured by first and exclusive charge by way of hypothecation of all the assets purchased out of the said credit facility.

 

Rupee term loan facility of Rs. 1000.000 million from Non Banking Finance Company is secured by first pari passu charge on the entire fixed assets of the Company.

 

Suppliers credit-foreign currency facility from Non Banking Finance Company is secured by first and exclusive charge on construction machineries and equipments procured out of the said credit facilities.

 

Pre shipment loan from EXIM Bank is securedby exclusive charge on equipments and materials procured/to be procured under the said credit facilities and Corporate Guarantee of Essar Projects Limited, UAE (Holding Company).

 

Post shipment loan from EXIM Bank is secured by exclusive charge on receivables pertaining to the contract with Essar Steel Minnesota LLC, USA for Supply of machinery and equipment and engineering services for setting up 4.10 MTPA Integrated Iron Ore Pellet Plant in Nashwauk, Minnesota, USA.

 

Cash Credit facilities and bill discounting facility (Acceptances against Letter of Credit) are secured by

 

First pari passu charge amongst working capital consortium Banks by way of hypothecation of entire current assets of the Company and second pari passu charge on all the moveable fixed assets of the Company excluding the charge in the specific equipments / assets exclusively hypothecated to other secured lenders.

 

Collateral security by way of Corporate Guarantee of Essar Investments Limited.

 

Other loans from banks

 

First paripassu charge amongst Working Capital Consortium Banks by way of hypothecation of entire current assets of the Company and second pari passu charge on all the moveable fixed assets of the Company excluding the charge on the specific equipments / assets exclusively hypothecated to other Secured Lenders

 

Collateral Security by way of Corporate Guarantee of Essar Investments Limited

 

Secured by first pari passu charge on the current assets and Second pari passu charge on movable fixed assets of the Company, both present and future.

 

Secured by second pari passu charge on the current assets and movable fixed assets of the Company

 

Term loan from a bank is secured by subservient charge on entire fixed assets, entire current assets of the Company and Corporate Guarantee provided by Essar Steel India Limited.

 

 

 

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

 

 

Holding Company:

Essar Projects Limited, Dubai

 

 

Ultimate Holding Company :

Essar Global Limited, Cayman Island

 

 

Joint Venture :

·         Essar – Dong Fang Electric Crop. China – Coastal Project Private Limited Consortium

·         Essar Projects (India) Limited – JSC Stroytransgaz Russia

 

 

Subsidiary  Company:

·         Essar Offshore Subsea Limited,

CIN No.:U11101MH2008PLC179089

·         Essar Constructions Overseas Limited, Mauritius (ECOL)

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

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

·         Krios Holding Private Limited

·         Kadmos Holding Private Limited

·         Essar Project (Singapore) Limited

CIN No. : U1110MH2008PLC179089

·         Essar Constructions Limited, Dubai (Subsidiary of EPMC)

·         Lucknow Varanasi Tollways Private Limited (from 24th February, 2012)

CIN No. : U45200DL2011PTC227573

 

 

Other major related parties commonly controlled or influenced by major shareholders / directors of the company, where there

have been transactions:

·         Essar Steel India Limited (Formerly Essar Steel Limited)

CIN No. : U27100GJ1976FLC013787

·         Essar Oil Limited

CIN No. : L11100GJ989PLC032116

·         Essar Shipping Limited

·         Essar Power Limited

CIN No. : U40100GJ1991PLC064824

·         Clickforsteel Services Limited

·         Vadinar Oil Terminal Limited

·         Adinar Power company Limited

·         Essar Power MP Limited

CIN No. : U99999DL2005PLC208864

·         Bhander Power Limited

CIN No. :U31101GJ1995PLC065146

·         Aegis Limited(in current year Essar Engineering Services Limited merged with Aegis Limited)

CIN No. :U99999MH1992PLC064767    

·         Essar Power Gujarat Limited

CIN No. : U4900GJ2007PLC066273

·         Essar Logistic Limited, India

CIN No. : U6300MH2004PLC49214

·         Essar Infrastructure Services Limited, India

CIN No. : U64202MH1995PLC087774

·         Essar Bulk Terminal Limited, India

CIN No. : U13100GJ2004PLC043477

·         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

CIN No. : U31101DL21005PLC211274

·         Essar Steel Minnesota LLC

·         Essar Power Salaya Limited

·         Essar Power Hazira Limited

·         Navbharat Power Private Limited

·         Essar Oilfield Service Limited

·         Essar Windpower Private Limited

·         Essar Ports Limited

CIN No. : L85110GJ975PLC054824

·         Lucknow Varanasi Tollways Private Limited

·         Essar Projects Saudi Company Limited

·         SaudiGlobal Supplies (UAE) FZE, Dubai (upto 20th March 2012, Professional Equipment Suppliers Limited,Dubai {(Formerly Essar Subsea Limited) upto 20th March 2012}.

 

 

Other major related parties upto 26th March 2012 commonly controlled or influenced by major shareholders / directors of the company, where there have been transactions:

·         Essar House Limited

·         Essar Procurement Services Limited (Formerly Essar Projects Limited)

CIN No. : U45203TN1990PLC026337

·         Futura Travels Limited

·         Essar Information Technology Limited

CIN No. : U7220MH1992PLC064816

·         Vadinar Properties Limited 

·         Essar Investments Limited

CIN No. : U99999MH1976PLC034721

·         Essar House Services Limited

·         Securities Limited, Arkay Holding Limited

·         Essar Properties Limited

CIN No. : U93090TN1983PLC019552

·         Trikaya Investments Limited

·         Global Supplies (India) Limited

·         Imperial Consultants and Securities Private Limited

·         Sinter-Keramos and Composites Private Limited

·         The MobileStore Limited

·         Essar Securities Limited

·         Paprika Properties India Private Limited

·         Essar Services India Limited

·         Frontier Leasing and Finance Limited

·         Trikaya Cultivations Private Limited

·         Essar Agrotech Limited.

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

130000000

Equity Shares

Rs.10/- each

Rs. 1300.000  Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

123998028

Equity Shares

Rs.10/- each

Rs. 1240.000 millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

1240.000

310.000

(b) Reserves & Surplus

 

11961.500

9473.900

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

13201.500

9783.900

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

16104.300

9481.200

(b) Deferred tax liabilities (Net)

 

342.600

325.300

(c) Other long term liabilities

 

9639.300

11100.600

(d) long-term provisions

 

100.600

70.200

Total Non-current Liabilities (3)

 

26186.800

20977.300

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

12358.800

5407.300

(b) Trade payables

 

17338.000

12535.900

(c) Other current liabilities

 

25232.000

24759.400

(d) Short-term provisions

 

247.600

36.900

Total Current Liabilities (4)

 

55176.400

42739.500

 

 

 

 

TOTAL

 

94564.700

73500.700

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

9983.600

8344.600

(ii) Intangible Assets

 

492.200

1.700

(iii) Capital work-in-progress

 

1841.100

2020.200

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

9961.100

2674.500

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

336.800

292.800

(e) Other Non-current assets

 

4424.100

1243.400

Total Non-Current Assets

 

27038.900

14577.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

20481.800

7877.000

(c) Trade receivables

 

16890.500

8843.700

(d) Cash and cash equivalents

 

2345.200

2751.700

(e) Short-term loans and advances

 

27762.900

39407.000

(f) Other current assets

 

45.400

44.100

Total Current Assets

 

67525.800

58923.500

 

 

 

 

TOTAL

 

94564.700

73500.700

 

 

SOURCES OF FUNDS

 

 

 

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

309.995

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

6965.632

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

7275.627

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

9270.378

2] Unsecured Loans

 

 

7819.987

TOTAL BORROWING

 

 

17090.365

DEFERRED TAX LIABILITIES

 

 

358.129

 

 

 

 

TOTAL

 

 

24724.121

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

8836.048

Capital work-in-progress

 

 

58.959

 

 

 

 

INVESTMENT

 

 

2199.382

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

 

6490.011

 

Sundry Debtors

 

 

5336.987

 

Cash & Bank Balances

 

 

1500.069

 

Other Current Assets

 

 

0.000

 

Loans & Advances

 

 

26536.444

Total Current Assets

 

 

39863.511

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

 

 

10250.366

 

Other Current Liabilities

 

 

15842.640

 

Provisions

 

 

140.773

Total Current Liabilities

 

 

26233.779

Net Current Assets

 

 

13629.732

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

24724.121

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

88198.000

69295.700

44050.505

 

 

Other Income

1824.000

2098.200

2293.165

 

 

TOTAL                                     (A)

90022.000

71393.900

46343.670

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of material consumed

10045.900

3823.400

--

 

 

Purchase of stock in trade

38999.000

35074.300

--

 

 

Change in inventories of finished goods, work in progress and stock in trade

51.600

(221.700)

--

 

 

Employee benefit expenses

3126.000

2279.600

1513.368

 

 

Other expenses

28526.000

23568.200

--

 

 

Construction Expenditure and cost of Traded Goods

--

--

38576.434

 

 

Administrative and Establishment Expenses

--

--

1445.663

 

 

Increase in Inventory in Traded Goods

--

--

(6.527)

 

 

TOTAL                                     (B)

80748.500

64523.800

41528.938

 

 

 

 

 

Less

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

9273.500

6870.100

4814.732

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

3406.800

1818.000

1501.522

 

 

 

 

 

 

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

5866.700

5052.100

3313.210

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1458.100

1309.900

1347.906

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

4408.600

3742.200

1965.304

 

 

 

 

 

Less

TAX                                                                  (H)

1497.600

1233.900

689.882

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

2911.000

2508.300

1275.422

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

6476.700

3968.400

2692.979

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

9387.700

6476.700

3968.401

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Contract Income

3427.400

359.400

0.000

 

 

Commission Earnings

30.600

43.200

0.000

 

 

Other Earnings

194.600

23.700

0.000

 

 

Equipment Hiring

0.000

0.000

167.740

 

TOTAL EARNINGS

3652.600

426.300

167.740

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Stores & Spares

7376.300

386.600

866.138

 

 

Capital Goods

1960.200

175.600

40.312

 

TOTAL IMPORTS

9336.500

562.200

906.450

 

 

 

 

 

 

Earnings Per Share (Rs.)

23.48

20.23

41.14

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

3.23

3.51

2.75

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

5.00

5.40

4.46

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

5.33

5.44

4.04

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.33

0.38

0.27

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

2.16

1.52

2.35

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.22

1.38

1.52

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

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 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

Yes

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

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

SHORT TERM BORROWINGS

 

 

From Banks

0.000

940.000

TOTAL

0.000

940.000

 

 

REVIEW OF OPERATIONS

 

Total Revenue of the Company rose by more than 26% from Rs.71393.900 Million in FY 2010-11 to Rs.90022.000 Million in FY 2011-12.

 

The company continued to sustain EBITDA margin despite increase in certain input costs by continuously focusing on enhancing its operational efficiencies. The EBITDA has increased from Rs.6870.100 Million in FY 2010-11 to Rs.9273.500 Million in FY 2011-12 registering a growth of over 34%.

 

Profit before Tax has increased by 17 % from Rs.3742.200 Million in FY 2010-11 to Rs.4408.600 Million in FY 2011-12.

 

The Company has provided Rs.1458.100 Million (Previous Year INR Rs.1309.900 Million) for depreciation and Rs.1407.700 Million (Previous Year Rs.1280.000 Million) towards Current Income Tax.

 

 

INDUSTRY OUTLOOK AND BUSINESS PLAN

 

The infrastructure development story in India over the last year been affected by the issues of implementation. As result, the pace of growth has simply been much slower than anticipated and there has been a considerable slowdown in development in the infrastructure sector.

 

Clearly, there is sufficient latent demand for large scale infrastructure development across different sectors ranging from power to transportation to urban infrastructure.

 

The Planning Commission’s Eleventh Five-Year Plan (2007-2012) had already identified that inadequate infrastructure was a major constraint on the country’s rapid growth. The Plan had, therefore, emphasized the need for massive expansion in investment in infrastructure.

 

Considering the critical need of developing infrastructure in the country, construction activities are crucial for creating physical infrastructure in the country. Construction, on an average, accounts for more than half of the investment required for setting up critical infrastructure facilities like power projects, ports, railways, roads, bridges.

 

The cumulative investment in infrastructure in the Twelfth Five-Year Plan (2012-2017) is targeted at around $1 trillion. Nearly half of this investment will be channelized into construction projects. Therefore, there is considerable long term business scope for players like them in the infrastructure related large scale construction business. Being one of the leading EPC Player, the Company is always geared to make the most of this opportunity.

 

In addition to the Infrastructure Sector, the Country is poised for substantial industrial growth in the sectors where The Company operates as an EPC Contractor viz; Hydrocarbon, Minerals and Metals and Pipelines. The Company expects to secure significant contracts in these sectors by leveraging its credentials and execution capability built on in house projects of similar nature and size.

 

The current Order Book further gives sufficient confidence for the growth of revenue in the years to come. With a growing projects portfolio in India, the Company is aggressively venturing into EPC Sectors in various emerging markets across the globe in the selected target sectors particularly in South East Asia, Middle East and South African Countries. In each of The target sectors, market opportunities are being identified and the same are being mapped against The capabilities.

 

The Company has been investing substantially in Marketing & PR efforts to convince key 3rdParty Clients of the track-record and execution experience of creating certain world class assets/projects not only for Essar Group but also for external clients.

 

 

AWARDS AND RECOGNITION

 

The Company has been awarded for one of India’s Most Admired Companies by Construction World (CW) Magazine at an awards function held in New York on September 16, 2011.

 

The Company was chosen based on its track record of impressive growth over the last 5 years, which has seen its revenues increase eight-fold, and PAT (profit after tax) increase eighteen-fold in the year 2005-11.

 

Recently, the Company has been conferred with ‘QCI DL SHAH National Award’ by the Quality Council of India, for outstanding achievement in Quality Circle Initiatives - Construction Segment. The QCI-DL Shah Award recognizes successful project (case study) of an organization that have linked quality initiatives to real term financial gains and competitiveness. Over 400 projects across India were in competition for these national level awards out of which the Company emerged as the winner in its category, for the Batching Plant Project, at Hazira.

 

 

AMALGAMATION OF ESSAR PROJECT MANAGEMENT CONSULTANTS LIMITED WITH THE COMPANY

 

On 26th August 2011, the Honorable High Court of Bombay, pursuant to the provisions of Sections 391 to 394 of the Companies Act, 1956 passed an order approving the Scheme of Amalgamation of Essar Project Management Consultants Limited with the Company with effect from 1st April 2011. Consequently, Essar Project Management Consultants Limited stands dissolved without being wound up and is removed from the register of the Registrar of Companies, Maharashtra. Pursuant to the Bombay High Court Order, all the Assets and Liabilities of Essar  Project Management Consultants Limited have been transferred to the Company.

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U99999MH1989PLC053280

Name of the company

ESSAR PROJECTS (INDIA) LIMITED

Address of the registered office or of the principal place of  business in India of the company

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

E-mail: brijesh.Shah@essar.com

This form is for

Creation of charge

Type of charge

Movable property (not being pledge)

Particular of charge holder

SREI Equipment Finance Private Limited ‘Vishwakarma’, 86C, Topsia Road, Kolkata - 700046, West Bengal, India  

E-mail: sanjay_chaurasia@srei.com

Nature of instrument creating charge

Deed of Hypothecation. (LCB255)

Date of instrument Creating the charge

08.12.2012

Amount secured by the charge

Rs.39.359 millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of interest

SBR (Current SBR is 17.25%) - 3.00% = 14.25% per annum.         *(SBR = SREI Benchmark Rate)

 

Terms of repayment

Loan tenure is 60 months. During the initial 6 months of principal moratorium, interest shall be paid on monthly basis. In the balance period of 54 months, equated quarterly installments of principal plus interest shall be repaid.

 

Margin

Rs.3.574 millions only.

 

Extent and operation of the charge

As per Deed of Hypothecation.

Short particulars of the property charged (Including location of the property)

16 Nos. of Escorts Hydraulic Mobile Crane. (within India)

 

 

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 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 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.64.69

UK Pound

1

Rs.100.80

Euro

1

Rs.86.30

 

 

INFORMATION DETAILS

 

Report Prepared by :

MRI

 


 

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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

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.