MIRA INFORM REPORT

 

 

Report Date :

24.03.2014

 

IDENTIFICATION DETAILS

 

Name :

ESSAR PROJECTS (I) LTD

 

 

Registered Office :

Port MPA Guest Houseopp. Port Office, SittweRakhine State

 

 

Country :

Myanmar

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

2010

 

 

Legal Form :

Branch of foreign company

 

 

Line of Business :

·         Construction of roads and motorways

·         Construction of bridges and tunnels

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 


 

Status :

Branch of Foreign Company

Payment Behaviour :

Unknown

Litigation :

Clear

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Myanmar

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name

 

ESSAR PROJECTS (I) LTD

 

 

ADDRESSES

 

Main Address:                            Port MPA Guest Houseopp. Port Office, SittweRakhine State

Zip code/City:                             Rakhine, Rakhine, Myanmar

 

Web site:                                    http://www.essarprojects.com/

E-mail:                                        contactprojects@essar.com

 

 

Profile

 

Established:                               2010

Line of Business:                        Building and general construction

Industry Division:                        Manufacturing

Industry-code (NACE):                 4211 Construction of roads and motorways

                                                  4213 Construction of bridges and tunnels

                                                  4291 Construction of water projects

                                                  4299 Construction of other civil engineering projects n.e.c.

Banks:                                        Unknown.

Employees:                                unknown

 

CNPJ:                                        -

 

 

DIRECTORS/MANAGEMENT

 

Official Administration:

Vice-President                            V K Bhat

Chief Operating Officer               V K Bhat

 

 

NEGATIVE INFORMATION

 

Public information:

-


SHARE & SHARE CAPITAL INFORMATION

 

Legal form:                                 Branch of foreign company

Balance sheet filing date:            -

Tax Contributor Number (CNPJ):  -

Legal status:                               active

 

Entry          Deleted      Name

active                           Essar Projects (I) Ltd.

 

 

PAYMENT INFORMATION

 

Import and Export:

-

 

Payment history:

No payment history is available.

 

 

FINANCIAL INFORMATION

 

Financial Data Essar Projects (India) limited

Consolidation:              unconsolidated

Industry:                       Trade/Industry

 

Fiscal year end:                                     31.03.2013        31.03.2012        31.03.2011        31.03.2010

Number of months:                                      12                    12                    12                    12

Currency:                                                  th. INR              th. INR              th. INR              th. INR

Statement norm:                                                                                                          Local GAAP

 

Balance Sheet

Intangible fixed assets                              454,300.0          492,200.0             1,700.0

Land and buildings                                    260,300.0          317,300.0         201,600.0

Other tangible fixed assets                     8,566,300.0       9,666,300.0       8,143,000.0

Tangible fixed assets                             8,826,600.0       9,983,600.0       8,344,600.0

Financial fixed assets                           21,029,400.0       9,961,100.0       2,674,500.0

other fixed assets                                  9,677,400.0       6,602,000.0       3,556,400.0

Fixed assets                                        39,987,700.0     27,038,900.0     14,577,200.0     11,094,400.0

Stocks                                                 19,929,400.0     20,481,800.0       7,877,000.0

Trade accounts receivable                     18,641,200.0     16,890,500.0       8,843,700.0

Liquid assets                                         2,199,000.0       2,345,200.0       2,751,700.0

other trade accounts                             24,609,500.0     25,849,300.0     37,042,000.0

Accruals                                                     49,300.0       1,959,000.0       2,409,100.0

Other current assets                              26,857,800.0     30,153,500.0     42,202,800.0

Current assets                                      65,428,400.0     67,525,800.0     58,923,500.0     41,131,700.0

Total assets                                        105,416,100.0     94,564,700.0     73,500,700.0     52,007,600.0

 

Capital                                                   1,240,000.0       1,240,000.0         310,000.0          310,000.0

Other shareholders funds                      14,778,500.0     11,961,500.0       9,473,900.0       6,965,600.0

Total shareholders equity                      16,018,500.0     13,201,500.0       9,783,900.0       7,275,600.0

long term debt (financial debts)             17,910,300.0     16,104,300.0       9,481,200.0

Provisions                                                152,500.0          100,600.0           70,200.0

Other non currentliabilities                     17,788,400.0       9,981,900.0     11,425,900.0

Non currentliabilities                              35,851,200.0     26,186,800.0     20,977,300.0       9,414,700.0

short term debt (financial debts)            16,363,400.0     13,099,500.0       5,643,700.0

Trade accounts payable                        19,679,400.0     17,338,000.0     12,535,900.0

Provisions                                                854,800.0          247,600.0           36,900.0

Accruals                                                                           472,000.0         370,000.0

other accounts payable                         16,648,800.0     24,019,300.0     24,153,000.0

other current liabilities                           17,503,600.0     24,738,900.0     24,559,900.0

Current liabilities                                   53,546,400.0     55,176,400.0     42,739,500.0     35,333,000.0

Shareh. equity, min. interests + liabilities 105,416,100.0   94,564,700.0     73,500,700.0     52,007,600.0

 

 

Profit and loss account

Sales                                                   67,190,300.0     88,779,800.0     70,274,000.0

Reduction of proceeds                           1,502,000.0       1,477,700.0       1,799,700.0

Net sales                                              65,688,300.0     87,302,100.0     68,474,300.0     43,947,700.0

Other operating revenue                          1,012,700.0          966,200.0         986,300.0

Operating revenue                                66,701,000.0     88,268,300.0     69,460,600.0     46,159,400.0

Cost of goods sold                              35,270,600.0     49,096,500.0     38,676,000.0

Gross profit                                         31,430,400.0     39,171,800.0     30,784,600.0

Other operating expenses                     25,424,800.0     33,110,100.0     27,157,700.0

Operating result                                      6,005,600.0       6,061,700.0       3,626,900.0       1,974,800.0

Interest revenues                                    2,024,100.0       1,723,100.0       1,917,800.0

other financial revenues                             472,700.0           30,600.0           15,500.0

Financial income                                    2,496,800.0       1,753,700.0       1,933,300.0

Interest expenses                                   3,550,000.0       2,611,700.0       1,182,100.0       2,656,900.0

other financial expenses                            896,600.0          795,100.0         635,900.0

Financial expenses                                 4,446,600.0       3,406,800.0       1,818,000.0

Financial result                                      -1,949,800.0      -1,653,100.0         115,300.0

Result before extraordinary items            4,055,800.0       4,408,600.0       3,742,200.0       1,974,800.0

Extraordinary Result                                            0.0                   0.0                   0.0

Result before taxes                                4,055,800.0       4,408,600.0       3,742,200.0

Taxes                                                    1,333,800.0       1,497,600.0       1,233,900.0          699,400.0

Result before minority interests               2,722,000.0       2,911,000.0       2,508,300.0       1,275,400.0

Result for the financial year                     2,722,000.0       2,911,000.0       2,508,300.0

 

Cash flow

Depreciation                                          1,528,700.0       1,465,400.0       1,309,900.0       1,347,900.0

Cash flow                                              4,250,700.0       4,376,400.0       3,818,200.0       2,623,300.0

Cash flow from operating activities         3,483,200.0      -8,840,400.0     10,127,400.0

Investments in tangible fixed assets           831,900.0       3,217,300.0       2,882,500.0

Cash flow from investing activities         -7,832,700.0      -2,531,000.0    -11,393,800.0

Cash flow from financing activities          4,231,500.0     10,322,900.0       2,252,000.0

Change in liquidity                                    -118,000.0      -1,048,500.0         985,600.0

Liquidity at beginning of the year               698,100.0                                 599,600.0

Liquidity at end ot the year                        580,100.0                              1,585,200.0

 

Notes

Material costs                                        7,037,900.0     10,045,900.0       3,823,400.0

Cost of employees                                 3,312,000.0       3,126,000.0       2,279,600.0       1,506,100.0

Added value                                                                11,611,700.0       8,513,800.0       7,485,700.0

Working Capital                                                            20,034,300.0       4,184,800.0

Gross cost land and buildings                   406,000.0          404,100.0         229,400.0

Gross cost other tangible fixed assets  15,636,600.0     15,976,300.0     13,079,000.0

Gross cost total                                   16,042,600.0     16,380,400.0     13,308,400.0

 

 

FOREIGN EXCHANGE RATES

 

Exchange rate:

US$ 1,00  =  MMK 949.112           

 

 

ADDITIONAL INFORMATION

 

Main Activities:

The company is a branch of the company Essar Projects (India) Limited that is part of the Essar Group.

 

Essar Projects (India) Limited is an engineering procurement and construction company in India. It constructs roads, highways, and expressways, cross-country and industrial pipelines, and offshore pipelines, ports, harbors, irrigation canals, siphons and bridges and associated structures and industrial projects for oil and gas, pharmaceutical, iron and steel, and power industries.

 

Operations & branches:

At the address, Port MPA Guest Houseopp. Port Office, SittweRakhine State, Myanmar we find the company's branch office.

 

Company's Background:

We have been unable to obtain when the full register details.

 

 

NOTES & COMMENTS

 

We made every effort to contact the company through the telephone number available but it rings and goes unanswered.

 

As we have no way of contacting the company, the details from this report come from official sources and various databases we can consult.

 

We sent a questionnaire to the email available requesting more information from the company. If we receive a reply we will send an update. 

 

Credit to the recommended limit should be acceptable but should be monitored on a regular basis.

 

News

 

Essar hopes to complete work on Myanmar’s Sittwe port by June

 

Construction contractor Essar Projects Ltd expects to complete by June 2014 the ‘port-cum-inland waterway’ part of an India-sponsored project in Myanmar.

 

The project is of critical economic and strategic importance to India, as it opens a new transport corridor between the North-East states and the rest of the country (and world) through Myanmar.

 

In an e-mailed response to Business Line, an Essar Project spokesman said that the project was now “70 per cent completed.”

 

Essar’s job involved building the Sittwe port and a jetty at Paletwa and dredging the 158 km of the river Kaladan between the two points, so as to make it navigable. Essar is also to construct and deliver six cargo vessels.

 

The hull fabrication work is “50 per cent complete,” said Essar.

 

India agreed to build the Kaladan multi modal transport project for Myanmar back in 2008.

 

Essar was awarded a part of the project by the Ministry of External Affairs in 2010. Some delay was initially caused because Myanmar took time to hand over land at the Sittwe port.

 

However, what also held back speedy implementation was the discovery of a couple of old wrecked ships in the port area.

 

Nodal point

 

The port at Sittwe will become the nodal point for transportation of goods from and to the interiors of the Rakhine state and to the North Eastern States of India along the river Kaladan, says Essar.

 

The project is, therefore, of great economic and social implications, as it will pave way for the development of the North East, and reduce the sense of alienation that prevails among the people there.

 

For instance, agriculture suffers there because of the difficulties in reaching fertilisers.

 

Also, the project will help keep good neighbourly relations with Myanmar, a country with which India shares a 1,640-km border (compared with 1,800 km with Pakistan) and perhaps keep the Chinese at bay.

 

Road connectivity

 

However, mainstreaming the North East through the Kaladan multi modal transport project looks like will have to wait for a number of years more – the connecting roads are a long way from being in place.

 

From the jetty at Paletwa, the Mizoram border is 109.2 km and from there to the State’s capital Aizwal is another 250 km. Even the preliminary steps towards this are yet to be taken.

“It is learnt that the tender for the road connectivity will be floated shortly,” said Essar.

 

In The Hindu Business Line on December 13, 2013

          Kaladan Multimodal Transit Transport Project (KMTT) is a framework agreement between the Government of India and Government the Republic of the Union of Myanmar, which has been awarded to Essar Projects Limited (EPL) as an EPC contract. This is the first port project by EPL in Myanmar, at two locations Sittwe and Paletwa, in Rakhine State. KMTT Project overview The project site is at a remote location in Myanmar, therefore mobilization of material and equipment is very challenging. The hilly terrain, poor transport and communication facilities and non-availability of resources make the challenge difficult. EPL managed to overcome this challenge with hard work and meticulous planning by the expert team. The experience of work at Kaladan will prove to be an advantage for the team and for such projects in the future. Inland Water Transport (IWT) is an important mode of transport in India and Myanmar since time immemorial. The river Kaladan is one of the waterways where IWT may be integrated with shipping India – Myanmar joint effort The Kaladan Multimodal Transit Transport project in India and Myanmar is prestigious. Moreover it is of great importance for the people and economic development of remote regions from both the nations. V K Bhat CEO – Infrastructure KALADAN MULTIMODAL TRANSIT TRANSPORT to form a sea-link. Through this link the car- go is transported from Kolkata Port or other Ports of India to Sittwe Port in Myanmar by sea and from there to the Indian State, Mizoram by IWT or by road-way. The proposed port jetty is a new transport system to con- nect the Indian states of Mizoram, Tripura, Manipur and Southern parts of Assam. It is planned and designed for general cargo movement from Kolkata to Sittwe. The Scope of Works include dredging of approx. 1.2 million cubic metres in the Port basin area, the approach channel using Trailer Hopper Suction Dredger and dredg- ing of approx. 0.15 million cubic metres in river Kaladan for a stretch of 168 kilometres from Sittwe to Paletwa and the construction of 500 metre rubble mounted dyke.

 

In Essar Projects Newsletter January 2014.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.05

UK Pound

1

Rs.100.81

Euro

1

Rs.84.18

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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 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%)

 

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.