|
Report Date : |
14.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
ESSAR OFFSHORE SUBSEA LIMITED |
|
|
|
|
Registered
Office : |
Essar House, 11, K. K. Marg, Mahalaxmi, Mumbai – 400034, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
19.02.2008 |
|
|
|
|
Com. Reg. No.: |
11-179089 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.168.750 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U11101MH2008PLC179089 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUME07326E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCE9585G |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in providing engineering, procurement, construction,
installation and commissioning services in oil and gas sector. |
|
|
|
|
No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 9200000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a wholly owned subsidiary of Essar Project (India) Limited. It is a well established and reputed company having a satisfactory
track record. There appears a drastic dip in the sales turnover as well as net
profitability during 2013. Further, there are huge external borrowings recorded in the books
which higlights the working capital intensive nature and may act as a threat
to the liquidity position. However, the financial position
seems to be decent marked by fair networth recorded during the year under
construction. Trade relations are fair. Business is active. Payment terms are
reported as usually correct. In view of strong financial support from its parent company, the
subject can be considered 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’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed
to $ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million estimated
losses suffered by India due to phishing attacks during the third quarter,
according to a study by RSA. India ranks fourth in the list of nations hit by
phishing attacks. The US remained at the top of the charts. Phishing is the
process of acquiring information such as user names, passwords and credit card
details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities: A- (SO) |
|
Rating Explanation |
Adequate degree of safety. It carry low credit risk. |
|
Date |
12 February 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: A2 (SO) |
|
Rating Explanation |
Strong degree of safety and carry low credit risk. |
|
Date |
12 February 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.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-66601100)
LOCATIONS
|
Registered Office : |
Essar House, 11, K. K. Marg, Mahalaxmi, Mumbai – 400034, Maharashtra |
|
Tel. No.: |
91-22-66601100 |
|
Fax No.: |
91-22-23524324 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 26.09.2013
|
Name : |
Mr. Vishnoo Narayan Paradkar |
|
Designation : |
Director |
|
Address : |
#1302, Rose Regency Garden, Sector - 6, Kharghar, Navi Mumbai –
410210, Maharashtra, India |
|
Date of Birth/Age : |
06.10.1948 |
|
Date of Appointment : |
19.02.2008 |
|
DIN No.: |
00078728 |
|
|
|
|
Name : |
Mr. Tapash Bhattacharya |
|
Designation : |
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 |
|
Date of Appointment : |
11.12.2008 |
|
DIN No.: |
02339966 |
|
|
|
|
Name : |
Mr. Alwyn Keith Bowden |
|
Designation : |
Additional 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 : |
18.10.2011 |
|
DIN No.: |
01349295 |
|
|
|
|
Name : |
Mr. Padinhar Chira Balakrishnan Nair |
|
Designation : |
Managing director |
|
Address : |
B- 20/21, Tower-B, Viceroy Park, Thakur Village, Kandivali (East),
Mumbai – 400101, Maharashtra, India |
|
Date of Birth/Age : |
15.07.1938 |
|
Qualification: |
MSc ( Defence Science) |
|
Experience : |
49 Year |
|
Date of Appointment : |
19.02.2008 |
|
PAN No.: |
ABOPN4824E |
|
DIN No.: |
00153133 |
|
|
|
|
Name : |
Mr. Padinhar Chira Balakrishnan Nair |
|
Designation : |
Director |
|
Address : |
B-20/21, Tower-B, Viceroy Park, Thakur Village, Kandivali (East),
Mumbai – 400101, Maharashtra, India |
|
Date of Birth/Age : |
15.07.1938 |
|
Date of Appointment : |
01.02.2013 |
|
DIN No. : |
00153133 |
|
|
|
|
Name : |
Mr. Gautam Thakor Bhai Shroff |
|
Designation : |
Director |
|
Address : |
13, Windsor House, Maharshi Karve Road, Churchgate, Mumbai – 400020,
Maharashtra, India |
|
Date of Birth/Age : |
03.12.1935 |
|
Date of Appointment : |
26.09.2013 |
|
DIN No. : |
00850082 |
|
|
|
|
Name : |
Mr. Ankur Gupta |
|
Designation : |
Managing director |
|
Address : |
201, Amardeep, N S Road, No.3, JVPD Scheme, Vile Parle, Mumbai –
400056, Maharashtra, India |
|
Date of Birth/Age : |
11.05.1966 |
|
Date of Appointment : |
26.09.2013 |
|
DIN No. : |
00331731 |
|
|
|
|
Name : |
Mr. Sushil Ramgopal Gupta |
|
Designation : |
Whole-time director |
|
Address : |
No. B-6, Tamira Niketan, SIPCOT Industrial Complex, Maduri – Byepass
Road, Tuticorin – 628002, Tamilnadu, India |
|
Date of Birth/Age : |
10.12.1966 |
|
Date of Appointment : |
26.09.2013 |
|
DIN No. : |
01898693 |
KEY EXECUTIVES
|
Name : |
Mr. Bidyut Dutta |
|
Designation : |
Chief of Operations |
|
|
|
|
Name : |
Mr. Matthew Dowell |
|
Designation : |
Base Manager – PLB and Construction Suptdt |
|
|
|
|
Name : |
Mr. Ashutosh Dash |
|
Designation : |
Project Manager |
|
|
|
|
Name : |
Mr. Pradeep Mishra |
|
Designation : |
GM Bidding |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 26.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Essar Projects (India) Limited, India |
|
16874994 |
|
Prasad D.V |
|
1 |
|
Brijesh Manmohan Shah |
|
1 |
|
Mohan Manral |
|
1 |
|
Vasant M Savla |
|
1 |
|
Amitabh P.K. Ghosh |
|
1 |
|
Gulabchand Ramniwas Pareek |
|
1 |
|
Total |
|
16875000 |
As on 26.09.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
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 providing engineering, procurement, construction,
installation and commissioning services in oil and gas sector. |
||||
|
|
|
||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
· Yes Bank Limited, Nehru Centre, 9th Floor, Discovery of India, Dr. A. B. Road, Worli, Mumbai - 400018, Maharashtra, India State
Bank of India, Corporate Account Group-Mumbai, Neville House, 3rd Floor, J.
N. Heredia Marg, Ballard Estate, Mumbai - 400001, Maharashtra, India |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai - 400018, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AADFD2337G |
|
|
|
|
Holding Company : |
Essar Projects (India) Limited, India CIN No.: U99999MH1989PLC053280 |
|
|
|
|
Holding Company of
Parent : |
Essar Projects Limited, Dubai |
|
|
|
|
Ultimate Holding
Company : |
Essar Global Fund Limited, Cayman Islands (Formely known as Essar Global Limited, Cayman Islands) |
|
|
|
|
Other related
parties commonly controlled or influenced by major shareholders / directors
of the Company, where there have been transactions: |
· Essar Engineering Services Limited Global
Supplies (UAE) FZE, Dubai Futura
Travels Limited CIN No.: U63040MH1990PLC056592 Essar
Information Technology Limited CIN No.: U72200MH1992PLC064816 Essar
Logistics Limited CIN No.: U63000MH2004PLC149214 Aarkay
Holdings Limited CIN No.: U65991TN1993PLC024773 Aegis
Limited CIN No.: U99999MH1992PLC064767 Essar
Oil Limited CIN No.: L11100GJ1989PLC032116 Essar
Investments Limited (Up to 26th March 2012) CIN No.: U99999MH1976PLC034721 Essar
Bulk Terminal Limited CIN No.: U13100GJ2004PLC043477 Essar
Steel India Limited CIN No.: U27100GJ1976FLC013787 Essar
Infrastructure Services Limited CIN No.: U64202MH1995PLC087774 Essar
Services India Limited CIN No.: U74999MH2011PLC217380 The
Mobile Store Limited CIN No.: U51900MH2006PLC160647 Vadinar
Oil Terminals Limited CIN No.: U35111GJ1993FLC053434 |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs. 200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16875000 |
Equity Shares |
Rs.10/- each |
Rs. 168.750
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
168.750 |
168.750 |
168.750 |
|
(b) Reserves & Surplus |
2131.914 |
1982.428 |
1455.411 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2300.664 |
2151.178 |
1624.161 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
78.600 |
161.000 |
|
(b) Deferred tax liabilities (Net) |
226.926 |
82.291 |
20.147 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
6.652 |
5.689 |
4.441 |
|
Total Non-current Liabilities (3) |
233.578 |
166.580 |
185.588 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
11918.882 |
3468.767 |
415.435 |
|
(b) Trade payables |
1669.973 |
1808.219 |
934.520 |
|
(c) Other current
liabilities |
460.530 |
265.643 |
858.851 |
|
(d) Short-term provisions |
0.407 |
0.659 |
6.121 |
|
Total Current Liabilities (4) |
14049.792 |
5543.288 |
2214.927 |
|
|
|
|
|
|
TOTAL |
16584.034 |
7861.046 |
4024.676 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
3743.748 |
2512.323 |
290.632 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.263 |
|
(iii) Capital
work-in-progress |
0.000 |
5.384 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
78.932 |
65.725 |
60.113 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
58.467 |
|
Total Non-Current Assets |
3822.680 |
2583.432 |
409.475 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
3677.512 |
3009.890 |
746.785 |
|
(c) Trade receivables |
81.792 |
730.380 |
564.882 |
|
(d) Cash and cash
equivalents |
6.894 |
274.517 |
1075.746 |
|
(e) Short-term loans and
advances |
8995.043 |
1253.648 |
1213.230 |
|
(f) Other current assets |
0.113 |
9.179 |
14.558 |
|
Total Current Assets |
12761.354 |
5277.614 |
3615.201 |
|
|
|
|
|
|
TOTAL |
16584.034 |
7861.046 |
4024.676 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4661.468 |
9220.332 |
7600.127 |
|
|
|
Other Income |
517.272 |
99.555 |
82.218 |
|
|
|
TOTAL (A) |
5178.740 |
9319.887 |
7682.345 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
213.248 |
2075.652 |
3272.513 |
|
|
|
Employee benefit expense |
180.427 |
208.601 |
178.111 |
|
|
|
Other expenses |
3405.073 |
6030.146 |
2580.902 |
|
|
|
TOTAL (B) |
3798.748 |
8314.399 |
6031.526 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1379.992 |
1005.488 |
1650.819 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
824.035 |
174.145 |
211.925 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
555.957 |
831.343 |
1438.894 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
195.263 |
44.182 |
23.835 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
360.694 |
787.161 |
1415.059 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
211.208 |
260.144 |
482.295 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
149.486 |
527.017 |
932.764 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1702.678 |
1175.661 |
242.897 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
1852.164 |
1702.678 |
1175.661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Contract Receipts |
3547.249 |
3383.883 |
4950.189 |
|
|
|
Other Income |
50.313 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
3597.562 |
3383.883 |
4950.189 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.86 |
31.23 |
55.27 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.89
|
5.65
|
12.14 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.74
|
8.54
|
18.62 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.17
|
10.02
|
35.16 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.37
|
0.87 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
5.18
|
1.65
|
0.35 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.91
|
0.95
|
1.63 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT
MATURITIES OF LONG TERM DEBTS
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
|
|
|
|
|
Current maturities of long-term borrowings |
78.600 |
82.400 |
20.400 |
|
|
|
|
|
|
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 |
No |
|
12] |
Profitability for last
three years |
No |
|
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 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10437550 |
15/07/2013 |
2,500,000,000.00 |
YES BANK LIMITED |
NEHRU CENTRE, 9TH
FLOOR, DISCOVERY OF INDIA, DR. |
B79923603 |
|
2 |
10378515 |
15/09/2012 |
2,500,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA |
B58910191 |
|
3 |
10202770 |
29/12/2009 |
205,200,000.00 |
UNION BANK OF INDIA |
UNION BANK BHAVAN,
239,, VIDHAN BHAVAN MARG, NARI |
A79367157 |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
From Banks |
|
|
|
Buyer's Credit |
3036.252 |
2094.859 |
|
Acceptances |
743.330 |
1373.908 |
|
From Others |
|
|
|
Inter corporate deposits taken from related party |
5639.300 |
0.000 |
|
Total |
9418.882 |
3468.767 |
CORPORATE INFORMATION
The Company, a fully owned subsidiary of Essar Projects (India) Limited, was incorporated on 19th February, 2008. The Company is engaged in providing engineering, procurement, construction, installation and commissioning services in oil and gas sector. The Company is primarily engaged in two types of business activities:
1 Vessel hiring - chartering of barges, tugs and other marine spreads owned by the Company
2 Contracting - marine construction in shallow and deep waters.
REVIEW OF OPERATIONS
The Company’s turnover has decreased from INR 9319.900 Millions in the previous year to Rs. 5178.700 Millions thereby registering a decline of 44% in terms of its revenue. Despite the decrease in turnover, the profitability during the year was higher due to decline in construction cost. The EBITDA of the Company stood at INR 1380.000 Millions as compared to INR 1005.500 Millions.
The Profit before Tax of the Company stood at INR 360.600 Millions (Previous Year INR 787.200 Millions) and Profit After tax works out to INR 149.500 Millions (Previous Year INR 527.000 Millions)
BUSINESS OUTLOOK
The offshore EPC business is slowly coming out of the recessionary trend experienced over the last few years. The Middle East and South East Asian markets are firming up with Oil and Gas operators pushing ahead with their Capex plans, as confidence level is growing. As a result, they expect the market, which was appearing over-provided with EPC contractors, to be more demand driven over the next 12-18 months. They have already seen several Billion worth of EPC jobs awarded in the Middle East, where the Company could not participate directly due to stringent qualification norms with players like ADMA, ZADCO, KJO, Saudi Aramco etc.
The Company has been, since last few quarters, focussing on the Middle East and South East Asian Markets and aggressively pursuing pre-qualification with major Oil and Gas operators in the region. Significant progress has already been made in their efforts to pre-qualify with ADMA, KJO etc.
On Indian front, the Company is targeting ONGC Tenders slated to be announced and worth about $ 3 Billion. The Company is targeting about 15% of the orders that are expected in the next 12 months in the Indian market.
In Indonesia, the Company is in the process of completing their administrative requirements to participate in the tendering process. The Company is in talks with Government EPC companies for partnering in a few large value projects
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
Guarantees given to Assistant Commissioner of Customs given by the Company to import the vessels on re-export basis |
6.047 |
5.226 |
|
Claim against the Company not acknowledged as debt (including Bank Guarantee of Rs. 4 crores given to Prothonotary and Master, Bombay High Court by the Company by Order of court for release of Vessel M.V.Nandsaarthi) |
88.219 |
0.000 |
|
Total |
94.266 |
5.226 |
FIXED ASSETS
v
Tangible
Assets
Computers
and Office Equipment
Ships
- Barges
v
Intangible Assets
Goodwill
– Brands /trademarks
PRESS RELEASE
PROJECTS OFFSHORE SUBSEA AWARDED OFFSHORE SERVICES OF THE YEAR
December 16, 2013
Essar Projects Offshore Subsea awarded for exemplary performance in the time-bound and complex projects executed during the evaluation period
Projects (EPIL) Offshore Subsea (EOSSL) won the award for Offshore Services of the Year 2013 at the Asia Oil and Gas Summit held in Bangkok, Thailand on November 18-19, 2013. EOSSL’s nomination was judged by a panel of energy ministers of Asian countries and eminent oil and gas professionals of the Asia Pacific region, who scrutinized the company’s performance in the time bound and complex projects that were executed during the evaluation period. Mr Bidyut Dutta, COO-EOSSL, received the award on behalf of the company.
Among the projects completed by EOSSL during the evaluation period were two
very large projects for ONGC (Oil and Natural Gas Corp.) — the Neelam Heera
Re-construction (NHRC) Project and the (Bombay High) D1 Oilfield Development
Project; the latter was a fast-track project.
Eminent speakers from the industry addressed the audience during the two-day Asia
Oil and Gas Summit where Mr Dutta presented on the topic — Offshore EPC
opportunities in India.
ESSAR PROJECTS COMPLETES ONGC'S D1 FIELD PROJECT
June 28, 2012
· Largest offshore project of EOSSL worth Rs 10640.000 Millions completed in 24 months
D1
production to go up to35,000 BOPD
5.2
million man-hours without any LTI
Mumbai: Essar Projects Limited today announced the completion and handing over of the Rs 10640.000 Millions D1 development project, 200 kms off Mumbai,to ONGC, facilitating the scaling up of the D1 field production to 35,000 BOPD (barrels of oil per day).
The largest offshore project executed by Essar Projects Limited envisaged the installation of three offshore platforms, the layingof subsea pipelines to connect the three platforms to the floating production, storage and offloading (FPSO) through a Pipeline End Manifold (PLEM). All new platforms, the PLEM and the existing D1 Platform will be connected with a network of subsea rigid and flexible pipelines and composite cables totaling about 30 kms.
Essar Projects Limited completed the project, awarded in May 2010 to the Essar Offshore Subsea Limited-led consortium, on a fast-track basis within 24 months. The scope of the work included Engineering, Procurement, Construction, Installation and Commissioning of the three unmanned four-legged fixed Jacket SMART Platforms – D1B, D1C and D1D in water depths of approximately 90 meters.
Setting a benchmark in its safety standards and impressive HSE record, Essar Projects Limited did not experiencea single LTI though a cumulative man-hour in excess of 5.2 million was registered.
Commenting on the achievement, Mr. Alwyn Bowden, President and CEO of Essar Projects said:“Executing the prestigious ONGC project on schedule was a strategic objective for Essar Projects Limited. The company has demonstrated its ability to conclude such a challenging project on time and is poised to execute projects of similar kinds worldwide.
ONGC’s D1 project represents the confirmation of meeting one of Essar Projects’ strategic objectives: acceding into the first league of offshore integrated oil and gas services providers worldwide. The management of all the subsea pipeline installation and adjoining works for ONGC speaks about our growth rate, the achieved performance levels in the turnkey project management and the successful delivery of major projects.”
The D1B platform will receive the 35,000 BOPD of crude produced by the D1, D1C and D1D platforms and this will then be transferred for processing to the D1 field FPSO via the PLEM.
Each platform has two main parts – the jacket and the deck. The jackets for each of the three platforms were fabricated at the CUEL Yard in LaemChabang, Thailand. The three decks were fabricated at the Profab yard in Batam, Indonesia.
The Projects team split the fabrication scope at two yards to meet the fast-track project completion deadline.
The Platforms in the D1 Project region are heavier than their counterparts in the Indian offshore. This is because the water depth in the field being deeper by about 90 metres.
Mr. PCB Nair, CEO and MD, Essar Offshore and Subsea, Limited, a strategic Business unit of Essar Projects Limited, said “We value our partnership with ONGC. The Offshore and Subsea Long-term business partnerships are key to our performance.Having completed this project it showcases our ability to deliver and our ambition in furthering our lead in the Oil and Gas market space. By completing this a large offshore project, Essar sends the signal that it is our intent to develop long-term collaboration with major Indian and global oil and gas market players”.
Some of the technological achievements of the project included transporting nearly 17,000 tonnes of steel for fabrication of jackets and decks across 2,000 nautical miles to reach Bombay High.The jackets are driven into the sea bed at a depth of over 100metres and the decks are installed on the jacket to complete the platform. All the jackets, decks and the associated pipelines, bridges and PLEM have been successfully installed and handed over to ONGC.
About Essar Projects
Essar Projects Limited (EPL), is a class-leading Engineering, Procurement
and Construction (EPC) contractor offering innovative execution and project
delivery solutions for projects of scale and complexity whilst simultaneously
managing interfaces with licensors and technology partners to its clients in
multiple sectors.
Essar Projects operates through eight Specialized Business Units (SBUs) aimed at leveraging the company’s sectorial expertise and track record. Each of these businesses – Power, Hydrocarbons, Civil and Buildings, Minerals and Metals, Offshore and Subsea, Pipelines and Terminals, Ports and Jetties, and Heavy Engineering – is run and managed by a team that has first-hand experience of delivering large projects on an EPC basis in its core sector.
The company has established itself as an EPC company of repute and is bidding and winning projects internationally to expand its global footprint. Its revenue for FY2012 was US$ 2.2 billion and Order Book stood in excess of US$ 6 billion.
ESSAR TAKES ONGC TO COURT FOR KEEPING IT OUT OF $2-BILLION TENDERS
Jul 26, 2012
MUMBAI: Mumbai-based metal-to-shipping conglomerate Essar Group has approached the Bombay High Court against state-run energy explorer Oil and Natural Gas Corporation's (ONGC's) decision to keep the business house out of its offshore oil services tenders worth $2 billion.
ONGC blames Essar of violating its contract and diverting a rig to foreign firm to make more money. Essar sources say there was a little delay in providing the rig but ONGC got another rig within a month, and this did not warrant the harsh step taken by ONGC against other group companies that have a long track record of doing business with ONGC. Essar sources say the group was not given a chance to explain its position before ONGC took the decision. Both companies declined formal comment as the matter is in court.
"Yes, I'm aware that we have discontinued our working relationship with Essar as of now as last year they conducted a clear breach of contract by not providing us with a rig for operational work in one of our blocks in the KG basin after the tendering process had been duly completed and it was mandatory for them to supply the rig," a senior ONGC executive told ET.
"The matter is serious as we have also learnt that Essar did not supply the rig to us as they preferred to supply it to another foreign company as the terms there were more lucrative," he added. According to the petition filed by Essar Offshore Subsea Limited (EOSL) Essar Shipping and Essar Projects, ONGC decided in April 2012 to stop any further business with Essar Oil Service India Limited (EOSIL). ONGC also decided not to work with Essar Shipping and Essar Projects for two years starting September 2011.
However, Essar says that there was no show-cause notice issued to the companies affected nor did they get any opportunity of being heard. EOSL came to know about the order on April 2012 through communication with EOSIL. In its plea, Essar states that the order to bar its other entities from bidding for ONGC contracts is a violation of its fundamental rights to do business.
The plea states that ONGC is one of the largest purchasers of services and products pertaining to offshore and marine activities in India and worldwide. If the firm does not stand entitled to bid for tenders issued by the PSU for a period of two years, it will result in a situation in which they will be effectively prevented from doing business in India and worldwide.
The petition, which has been reviewed by ET, also states that Essar Projects and Essar Shipping were barred from participating in two tenders amounting to $1 billion each, which caused major financial losses to the firms. There are around five tenders from July 2012 to August 2012 worth $1.2 billion where too the petitioners were disentitled from participating. Senior Counsel Mukul Rohtagi and Senior Counsel Janak Dwarkadas along with Mumbai based corporate law firm Dhruve Liladhar and Company are representing Essar Group while ONGC is being represented by MDP Partners.
ESSAR PROJECTS COMPLETES WORK ON ONGC'S OFFSHORE UNIT
Jun 28, 2012
NEW DELHI: Essar Projects Limited today said it has completed work on state-owned Oil and Natural Gas Corp's (ONGC) Rs 10640.000 Millions project to develop D1 fields, 200-km off the Mumbai coast.
"The largest offshore project executed by Essar Projects envisaged installation of three offshore platforms and laying of subsea pipelines to connect the three platforms to the floating production, storage and offloading (FPSO)," the company said in a statement here.
The project will help ONGC scale up D1 fild production to 35,000 barrels per day, Essar said but did not give the current output.
"Essar Projects Limited completed the project, awarded in May 2010 to the Essar Offshore Subsea Limited-led consortium on a fast-track basis within 24 months," the statement said.
The scope of the work included engineering, procurement, construction, installation and commissioning of the three unmanned four-legged fixed jacket platforms in water depths of about 90 metres.
Alwyn Bowden, President and CEO of Essar Projects said, "Executing the prestigious ONGC project on schedule was a strategic objective for Essar Projects Limited. The company has demonstrated its ability to conclude such a challenging project on time and is poised to execute projects of similar kinds worldwide."
D1B platform will receive the 35,000 bpd of crude oil produced by the D1, D1C and D1D platforms and will then be transferred for processing to the D1 field FPSO.
PCB Nair, CEO and MD, Essar Offshore and Subsea Limited, a strategic business unit of Essar Projects Limited, said, "By completing this a large offshore project, Essar sends the signal that it is our intent to develop long-term collaboration with major Indian and global oil and gas market players".
Essar Projects operates through eight Specialised Business Units (SBUs) -- power, hydrocarbons, civil and buildings, minerals and metals, offshore and subsea, pipelines and terminals, ports and jetties, and heavy engineering. Its revenue for 2011-12 was $2.2 billion and order book stood in excess of $6 billion, the statement added.
ONGC ROLLS BACK ITS ESSAR ORDER, KEEPS BAN ON 1 ENTITY
Jul 31, 2012,
MUMBAI: The Oil and Natural Gas Corporation on Friday rolled back its earlier order barring Essar Group entities from participating in its tenders by issuing an amendment that bars only one entity in the Essar group — Essar Oilfield Services India (EOSIL).
On Friday, in an amendment to its earlier order, ONGC clarified that it has decided to stop any further business dealing with the contractor — EOSIL for two years from September 5, 2011.
The amendment dated July 27, reviewed by ET, specifically omits allied concerns, partners, associates , director or proprietors of the group who were earlier barred to participate in new tenders issued by the oil major.
The earlier order from ONGC was a blanket ban on all Essar group entities. ET on July 26 had reported that the Essar Group had approached the Bombay High Court against ONGC's decision to keep the business house out of its offshore oil services tenders worth $2 billion.
According to the petition filed by Essar Offshore Subsea (EOSL), Essar Shipping and Essar Projects , ONGC decided on April 2012 to stop any further business with EOSIL.
When contacted , Chandubhai Mehta , managing partner of Dhruve Liladhar and Co, who is representing Essar Group in the court, refused to comment on the issue .
ONGC is being represented by MDP Partners. A senior Essar official confirmed that ONGC has amended its earlier order.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.61.52 |
|
|
1 |
Rs.101.48 |
|
Euro |
1 |
Rs.84.11 |
INFORMATION DETAILS
|
Information Gathered
by : |
PDT |
|
|
|
|
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 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
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 |
|
47 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.