MIRA
INFORM REPORT
|
Report Date : |
24.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
ESSAR PROJECTS (INDIA) LIMITED (w.e.f.23.09.2009) |
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Formerly Known
As : |
ESSAR CONSTRUCTIONS (INDIA) LIMITED (w.e.f.11.01.2007) ESSAR CONSTRUCTIONS LIMITED
(w.e.f.18.10.2000) ESSAR STENA LIMITED |
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Registered
Office : |
Essar House, 11-Keshavrao Khadye Marg, Mahalaxmi, Mumbai - 400034, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
01.09.1989 |
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Com. Reg. No.: |
11-053280 |
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Capital
Investment / Paid-up Capital : |
Rs. 1240.000
Millions |
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CIN No.: [Company Identification No.] |
U99999MH1989PLC053280 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUME03801A |
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PAN No.: [Permanent Account No.] |
AAACE2358J |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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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. |
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|
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (33) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
||
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is a part of “ESSAR GROUP”. It is an established company
having moderate track record. The company has seen a deterioration in its financial profile marked
by stretched liquidity position due to leveraged capital structure and
elongation of working capital cycle along with significant investments in
subsidiaries which are yet to generate free cash flows. Moreover, the management has witnessed a drastic dip in its sales
volume during FY 13. However, trade relations are seems to be fair. Business is active.
Payment terms are reported as slow but correct. In view of vast promoters experience, the company can be considered
for business dealings with caution. |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks over
coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs arm
that ensures that companies file all the information required by the Companies
Act is the latest manifestation of a messy fight between a father and his
adopted son for the control of Rs 40000 mn business empire. The Central Bureau
of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as
bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term Bank facilities : BB |
|
Rating Explanation |
Inadequate credit quality and high credit
risk. |
|
Date |
19.03.2014 |
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Rating Agency Name |
CARE |
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Rating |
Short term Bank facilities : A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk |
|
Date |
19.03.2014 |
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
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON COOPERATIVE (91-22-67335000)
LOCATIONS
|
Registered / Corporate Office : |
Essar House, 11-Keshavrao Khadye Marg, Mahalaxmi, Mumbai - 400034,
Maharashtra, India |
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Tel. No.: |
91-22-66601100/ 24950606/ 50011100 |
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Fax No.: |
91-22-66601809/ 24954324 |
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E-Mail : |
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Website : |
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Branch Office 1 : |
Essar Technopark, Old Swan Mill Compound Mark, Kurla (West), Mumbai
-400070, Maharashtra, India |
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Branch Office 2 : |
44 Km Stone, S H No 25, Jamnagar Okha Highway, Vadinar District
Jamnagar – 361305, Gujarat, India |
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Other Branch Offices : |
Located at: ·
Ahmedabad ·
Mumbai ·
Chennai ·
Hazira ·
New Delhi ·
Visakhapatnam |
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Overseas Offices : |
Located
at: ·
Africa ·
Canada ·
Czech Republic ·
China ·
Indonesia ·
Kenya ·
Korea ·
Madagascar ·
Mauritius · United Kingdom · Qatar ·
UAE ·
USA · Vietnam |
DIRECTORS
AS ON 26.09.2013
|
Name : |
Alwyn Keith Bowden |
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Designation : |
Managing director |
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Address : |
Casa Grande, Tower No.1, Flat No.1803, 18th Floor, Lower Parel, Mumbai – 400013, Maharashtra, India |
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Date of Birth/Age : |
06.12.1957 |
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Qualification : |
BE - Civil (Swansea University (UK)) |
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Experience : |
34 Years |
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Date of Appointment : |
18.07.2011 |
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PAN No.: |
AUEPB7254M |
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DIN No.: |
01349295 |
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Name : |
Mr. Venkatesan Venkataramansinganallur |
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Designation : |
Director |
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Address : |
F-401, The Atrium, Old No. 49, New No. 22, Kalakshetra Road, Thiruvanmiyur, Chennai- 600041, Tamilnadu, India |
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Date of Birth/Age : |
01.10.1939 |
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Date of Appointment : |
01.03.2001 |
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DIN No.: |
00004010 |
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Name : |
Mr. Krishnamurthy Nagaraj Tirumakudlu Narasipur |
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Designation : |
Director |
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Address : |
#32, Plot No.50, temple View, Bull Temple Road, Basavangudi, Bangalore-560004, Karnataka, India |
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Date of Birth/Age : |
21.07.1934 |
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Date of Appointment : |
01.03.2001 |
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DIN No.: |
00048680 |
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Name : |
Mr. Mahesh Sitaram Ambegaonkar |
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Designation : |
Whole-time director |
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Address : |
B-501, Golden Willows, Vasant Garden, Near Swapna Nagari, Mulund (West), Mumbai-400080, Maharashtra, India |
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Date of Birth/Age : |
05.08.1946 |
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Qualification : |
Mechanical Engineer |
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Date of Appointment : |
26.12.2008 |
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PAN No.: |
AACPA4652N |
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DIN No.: |
02341599 |
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Name : |
Mr. Gautam Thakor Bhai Shroff |
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Designation : |
Director |
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Address : |
# 13, Windsor House, Maharshi Karve Road, Chruchgate, Mumbai – 400020,
Maharashtra, India |
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Date of Birth/Age : |
03.12.1935 |
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Date of Appointment : |
26.09.2013 |
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DIN No.: |
00850082 |
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Name : |
Mr. Mukesh Rambihari Rohatgi |
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Designation : |
Director |
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Address : |
D 190, Sector 41, G B Nagar, Noida – 201303, Uttar Pradesh, India |
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Date of Birth/Age : |
27.09.1949 |
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Date of Appointment : |
26.09.2013 |
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DIN No.: |
00136067 |
KEY EXECUTIVES
|
Name : |
Mr. Brijesh Manmohan Shah |
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Designation : |
Secretary |
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Address : |
Plot No.328, Swastik Park, Flat No. 202, ‘A’ Wing, 12th Road,
Jawahar Nagar, Goregaon (West), Mumbai-400062, Maharashtra, India |
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Date of Birth/Age : |
09.05.1978 |
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Date of Appointment : |
31.10.2008 |
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PAN No.: |
AUDPS8448M |
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Name : |
Mr. Anand Sonthalia |
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Designation : |
Chief Executive Officer - EHES |
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Name : |
Mr. Vinay Joshi |
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Designation : |
Sr. Vice President |
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Name : |
Mr. Asis Gupta |
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Designation : |
Sr. Vice President |
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Name : |
Mr. Adluru Amarnath |
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Designation : |
Chief Executive Officer-Minerals and Metals SBU |
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Name : |
Mr. Shyam Bagrodia |
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Designation : |
Chief Executive Officer – Global Sourcing |
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Name : |
Mr. Ravindran Kayarat |
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Designation : |
Sr. Vice President – Hydrocarbon |
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Name : |
Mr. Mike Barton |
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Designation : |
Sr. Vice President-Civil and Building SBU |
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Name : |
Mr. Robin Scowcroft |
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Designation : |
Sr.Vice President-Commercial |
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Name : |
Mr. Ghanshyam Mehta |
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Designation : |
Sr. Vice President - Construction Head |
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Name : |
Mr. Chandrajit Pati |
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Designation : |
Senior Vice President - HR |
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Name : |
Mr. Vishwesha Bhat |
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Designation : |
Chief Executive Officer-Infrastructure SBU |
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Name : |
Mr. S. N. Eachampati |
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Designation : |
Chief Executive Officer-Power SBU |
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Name : |
Mr. Pradeep Kathuria |
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Designation : |
Head and Chief Exceutive Officer-Construction Equipment Bank |
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Name : |
Jasbir Singh |
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Designation : |
Vice President-Engineering |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 26.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Essar Projects Limited, UAE |
|
123998000 |
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Mohan Singh Manral Nominee Essar Projects Limited, UAE |
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4 |
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Brijesh Manmohan Shah Nominee Essar Projects Limited, UAE |
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8 |
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Prasad V. Devata Nominee Essar Projects Limited, UAE |
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4 |
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Savla Mavji Vasant Nominee Essar Projects Limited, UAE |
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4 |
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Ghosh P. K. Amitabh Nominee Essar Projects Limited, UAE |
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4 |
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Gulabchand R. Parek Nominee Essar Projects Limited, UAE |
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4 |
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Total |
|
123998028 |
AS ON 26.09.2013
|
Equity Share Breakup |
Percentage of Holding |
|
Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
100.00 |
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Total |
100.00 |
%20LIMITED%20-%20287629%2024-Sep-2014_files/image002.gif)
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 |
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Bankers : |
·
Central Bank of India, Corporate Finance Branch,
1st Floor, MMO Building, Fort, Mumbai - 400023, Maharashtra, India ·
IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe
Parade, Mumbai - 400005, Maharashtra, India · Yes Bank Limited, Nehru Centre, 9th Floor, Discovery Of India, Dr. A. B. Road, Worli, Mumbai - 400018, Maharashtra, India · ICICI Bank Limited, Land Markrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India · UCO Bank · HDFC Bank · Union Bank of India · Corporation Bank Limited · Dena Bank · ING Vysya Bank · Export Import Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institution : |
SREI Equipment Finance Private Limited ‘Vishwakarma’, 86C, Topsia Road, Kolkata – 700046, West Bengal, India |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate,
Worli, Mumbai - 400018, Maharashtra, India |
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Income-tax
PAN of auditor or auditor's firm : |
AADFD2337G |
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Holding company
: |
Essar Projects Limited |
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Ultimate Holding Company : |
Essar Global Funds Limited, Cayman Island |
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Enterprises
which are owned, or have significant influence
of or are partners with
Key management personnel and their relatives : |
v Aegis Limited
[U99999MH1992PLC064767] v Bhander Power
Limited [U31101GJ1995PLC065146] v Essar Bulk
Terminal Limited [U13100GJ2004PLC043477] v Essar
Information Technology Limited [U72200MH1992PLC064816] v Essar Infrastructure
Services Limited [U64202MH1995PLC087774] v Essar
Investments Limited [U99999MH1976PLC034721] v Essar Logistics
Limited [U63000MH2004PLC149214] v Essar Oil
Limited [L11100GJ1989PLC032116] v Essar Oilfield
Services Limited v Essar Power Hazira
Limited [U40300GJ2006PLC063146] v Essar Ports
Limited [L85110GJ1975PLC054824] v Essar Power
Gujarat Limited [U74900GJ2007PLC066273] v Essar Power
(Jharkhand ) Limited [U31101DL2005PLC211274] v Essar Power
Limited [U40100GJ1991PLC064824] v Essar Power M P
Limited [U40100DL2005PLC201961] v Essar Power
Transmission Company Limited [U99999DL2005PLC208864] v Essar
Procurement Services Limited [U45203TN1990PLC026337] v Essar Properties
Limited [U93090TN1983PLC019552] v Essar Steel
India Limited [U27100GJ1976FLC013787] v Essar Steel
Minnesota LLC v Futura Travels
Limited [U63040MH1990PLC056592] v Global Supplies
(UAE) FZE v Imperial
Consultants and Securities Private Limited [U65993TN1993PTC024724] v Navabharat Power
Private Limited [U40109DL2005PTC231302] v The MobileStore
Limited [U51900MH2006PLC160647] v Vadinar Power
Company Limited [U40100GJ1997PLC033108] v Essar Power
(Orissa) Limited [U31101DL2005PLC208862] v Vadinar Ports
and Terminals Limited [U63023GJ2009FLC056684] v Equinox Business
Parks Private Limited [U70102MH2007PTC172950] v Essar Shipping
Limited [U61200GJ2010PLC060285] v Vadinar Oil
Terminal Limited v Essar Bulk
Terminal (Salaya) Limited v Essar Bulk
Terminal Paradeep Limited v Essar Power
Salaya Limited v Essar Windpower
Private Limited v Essar Oil
Vadinar Limited |
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Subsidiary company
: |
v Essar Constructions Limited v Essar Constructions Overseas Limited v Essar Offshore Subsea Limited [U11101MH2008PLC179089] v Essar Projects (PNG) Limited v Essar Projects Singapore Pte Limited v Krios Holdings Pte. Limited v Lucknow Varanasi Tollways Private Limited [U45200DL2011PTC227573] v Essar Refinery Projects Limited [U45200GJ2010PLC062785] v Tirunelveli Wind Farms Limited [U01403MH2007PLC166813] v Essar Projects Saudi Company LLC |
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Joint venture : |
Essar Projects (India) Limited-JSC Stroytransgaz Russia |
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Fellow
Subsidiary Company : |
v Essar Projects
Middle East FZE, Dubai v Essar Projects
UK Limited, United Kingdom. v PT Essar
Projects Indonesia, Indonesia v Essar
Projects(USA) LLC, Delaware USA |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
130000000 |
Equity Shares |
Rs. 10/- each |
Rs.1300.000 Millions |
|
|
|
|
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Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
123998028 |
Equity Shares |
Rs. 10/- each |
Rs.1240.000
Millions |
|
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|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1240.000 |
1240.000 |
310.000 |
|
(b) Reserves and Surplus |
14778.500 |
11961.500 |
9473.900 |
|
(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) |
16018.500 |
13201.500 |
9783.900 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
17910.300 |
16104.300 |
9481.200 |
|
(b) Deferred tax liabilities (Net) |
420.100 |
342.700 |
325.300 |
|
(c) Other long
term liabilities |
17368.300 |
9639.200 |
11100.600 |
|
(d) long-term
provisions |
152.500 |
108.600 |
70.200 |
|
Total Non-current
Liabilities (3) |
35851.200 |
26194.800 |
20977.300 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
16363.400 |
12358.800 |
5407.300 |
|
(b)
Trade payables |
19679.400 |
17338.100 |
12535.900 |
|
(c)
Other current liabilities |
16648.800 |
25232.600 |
24759.400 |
|
(d) Short-term
provisions |
854.800 |
239.700 |
36.900 |
|
Total Current
Liabilities (4) |
53546.400 |
55169.200 |
42739.500 |
|
|
|
|
|
|
TOTAL |
105416.100 |
94565.500 |
73500.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
8826.600 |
9983.500 |
8344.600 |
|
(ii)
Intangible Assets |
454.300 |
492.200 |
1.700 |
|
(iii)
Capital work-in-progress |
2108.200 |
1841.100 |
2020.200 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
21029.400 |
9961.100 |
2674.500 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
742.100 |
341.200 |
292.800 |
|
(e) Other
Non-current assets |
6827.100 |
4424.100 |
1243.400 |
|
Total Non-Current
Assets |
39987.700 |
27043.200 |
14577.200 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
19929.400 |
20481.800 |
7877.000 |
|
(c)
Trade receivables |
18641.200 |
16890.500 |
8843.700 |
|
(d) Cash
and cash equivalents |
2199.000 |
2345.200 |
2751.700 |
|
(e)
Short-term loans and advances |
24430.500 |
27759.400 |
39407.000 |
|
(f)
Other current assets |
228.300 |
45.400 |
44.100 |
|
Total
Current Assets |
65428.400 |
67522.300 |
58923.500 |
|
|
|
|
|
|
TOTAL |
105416.100 |
94565.500 |
73500.700 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
66684.300 |
88198.000 |
69295.700 |
|
|
|
Other Income |
2513.500 |
1824.000 |
2098.200 |
|
|
|
TOTAL (A) |
69197.800 |
90022.000 |
71393.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
7037.900 |
10045.900 |
3823.400 |
|
|
|
Purchases of stock-in-trade |
28050.000 |
39055.000 |
35074.300 |
|
|
|
Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
182.700 |
51.600 |
(221.700) |
|
|
|
Employee benefit expense |
3312.000 |
3126.000 |
2279.600 |
|
|
|
Other expenses |
20584.100 |
28470.000 |
23568.200 |
|
|
|
TOTAL (B) |
59166.700 |
80748.500 |
64523.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
10031.100 |
9273.500 |
6870.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
4446.600 |
3406.800 |
1818.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5584.500 |
5866.700 |
5052.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1528.700 |
1458.100 |
1309.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4055.800 |
4408.600 |
3742.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1333.800 |
1497.700 |
1233.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2722.000 |
2910.900 |
2508.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
9387.600 |
6476.700 |
3968.400 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
12109.600 |
9387.600 |
6476.700 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Income from Construction Contract |
3384.400 |
3427.400 |
359.400 |
|
|
|
Interest on advances and dividend on preference shares |
90.600 |
30.600 |
43.200 |
|
|
|
Other income (Reimbursement of expenses) |
543.700 |
194.600 |
23.700 |
|
|
|
Proceeds on sale of fixed assets |
73.100 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
4091.800 |
3652.600 |
426.300 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components and Spare Parts |
5777.100 |
7376.300 |
386.600 |
|
|
|
Capital Goods |
354.800 |
1960.200 |
175.600 |
|
|
TOTAL IMPORTS |
6131.900 |
9336.500 |
562.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
21.95 |
23.48 |
20.23 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
3.39
|
3.23 |
3.51 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.08
|
5.00 |
5.40 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.93
|
5.33 |
5.44 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.33 |
0.38 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.14
|
2.16 |
1.52 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.22
|
1.22 |
1.38 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
in Millions) |
(Rs.
in Millions) |
(Rs.
in Millions) |
|
Share Capital |
310.000 |
1240.000 |
1240.000 |
|
Reserves & Surplus |
9473.900 |
11961.500 |
14778.500 |
|
Net
worth |
9,783.900 |
13,201.500 |
16,018.500 |
|
|
|
|
|
|
long-term borrowings |
9481.200 |
16104.300 |
17910.300 |
|
Short term borrowings |
5407.300 |
12358.800 |
16363.400 |
|
Total
borrowings |
14,888.500 |
28,463.100 |
34,273.700 |
|
Debt/Equity
ratio |
1.522 |
2.156 |
2.140 |
%20LIMITED%20-%20287629%2024-Sep-2014_files/image004.gif)
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
in Millions) |
(Rs.
in Millions) |
(Rs.
in Millions) |
|
Sales |
69295.700 |
88198.000 |
66684.300 |
|
|
|
27.278 |
(24.393) |
%20LIMITED%20-%20287629%2024-Sep-2014_files/image006.gif)
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
in Millions) |
(Rs.
in Millions) |
(Rs.
in Millions) |
|
Sales |
69295.700 |
88198.000 |
66684.300 |
|
Profit |
2508.300 |
2910.900 |
2722.000 |
|
|
3.62% |
3.30% |
4.08% |
%20LIMITED%20-%20287629%2024-Sep-2014_files/image008.gif)
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 |
Yes |
|
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 |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Presentation
Date:- 23.09.2014 |
|
Lodging
No.:- CPL/689/2014 Filing Date:- 23.09.2014 |
|
Petitioner: JAN DE NUL SINGAPORE PTE LTD. -
Respondent: M/S. ESSAR PROJECTS INDIA LIMITED Petn. Adv : MANEKSHA AND SETHNA (11) District: MUMBAI |
|
Bench: SINGLE Status: Pre-Admission Category: COMPANY PETITION U/SEC 433, 434, 439 COMPANIES ACT Next Date: 09.10.2014
Stage: Last Coram: REGISTRAR(OS)/PROTHONOTARY
AND SR. MASTER |
|
Act: Income Tax Act, 1956 UNDER SECTION: 433 (E) 434 (1) (A) |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10461523 |
31/10/2013 |
2,150,000,000.00 |
CENTRAL BANK OF
INDIA |
CORPORATE
FINANCE BRANCH, 1ST FLOOR, MMO BUILDING, FORT, MUMBAI - 400023, MAHARASHTRA,
INDIA |
B90054701 |
|
2 |
10456171 |
28/09/2013 |
1,700,000,000.00 |
SREI
INFRASTRUCTURE FINANCE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
B87991154 |
|
3 |
10442286 |
15/07/2013 |
23,921,199.00 |
SREI EQUIPMENT
FINANCE PRIVATE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
B81808198 |
|
4 |
10437435 |
25/06/2013 |
4,500,000,000.00 |
YES BANK LIMITED |
NEHRU CENTRE,
9TH FLOOR, DISCOVERY OF INDIA, DR. A. B. ROAD, WORLI, MUMBAI - 400018,
MAHARASHTRA, INDIA |
B79864385 |
|
5 |
10438293 |
25/06/2013 |
2,500,000,000.00 |
YES BANK LIMITED |
NEHRU CENTRE,
9TH FLOOR, DISCOVERY OF INDIA, DR. A. B. ROAD, WORLI, MUMBAI - 400018,
MAHARASHTRA, INDIA |
B80229362 |
|
6 |
10440896 |
08/06/2013 |
790,460,000.00 |
SREI EQUIPMENT
FINANCE PRIVATE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
B81052953 |
|
7 |
10363638 |
01/06/2012 |
9,000,000,000.00 |
CENTRAL BANK OF
INDIA |
CORPORATE
FINANCE BRANCH. MMO BUILDING, 1ST FLOOR, M G ROAD, FORT, MUMBAI - 400023,
MAHARASHTRA, INDIA |
B42871913 |
|
8 |
10358836 |
25/05/2012 |
1,150,000,000.00 |
CENTRAL BANK OF
INDIA |
CORPORATE
FINANCE BRANCH. MMO BUILDING, 1ST FLOOR, M G ROAD, FORT, MUMBAI - 400023,
MAHARASHTRA, INDIA |
B40844441 |
|
9 |
10338169 |
23/02/2012 |
280,000,000.00 |
SREI INFRASTRUCTURE
FINANCE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
B33208828 |
|
10 |
10330965 |
09/01/2012 |
1,500,000,000.00 |
ICICI BANK
LIMITED |
LANDMARKRACE COURCE
CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA |
B30305999 |
|
11 |
10323498 |
21/12/2011 |
750,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE,
FLOOR 21, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA,
INDIA |
B28007656 |
|
12 |
10307870 |
08/06/2013 * |
954,905,000.00 |
SREI EQUIPMENT
FINANCE PRIVATE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
B81051955 |
|
13 |
10313077 |
15/09/2011 |
40,119,000.00 |
SREI EQUIPMENT FINANCE
PRIVATE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
B23511975 |
|
14 |
10303910 |
05/07/2011 |
13,336,700.00 |
SREI EQUIPMENT
FINANCE PRIVATE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
B19500602 |
|
15 |
10300438 |
15/06/2011 |
27,066,302.00 |
SREI EQUIPMENT
FINANCE PRIVATE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
B18152769 |
|
16 |
10300535 |
15/06/2011 |
27,066,302.00 |
SREI EQUIPMENT
FINANCE PRIVATE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
B18180133 |
|
17 |
10296302 |
05/06/2011 |
146,342,400.00 |
SREI EQUIPMENT
FINANCE PRIVATE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
B16575029 |
|
18 |
10295109 |
15/05/2011 |
32,193,750.00 |
SREI EQUIPMENT
FINANCE PRIVATE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
B16165052 |
|
19 |
10274275 |
22/03/2011 * |
10,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BLDG.,
GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B08972101 |
|
20 |
10238166 |
20/12/2011 * |
6,000,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTER ONE
BUILING, FLOOR 21, WORLD TRADE CENTRE, COMPLEX, CUFFE PARADE, MUMBAI -
400005, MAHARASHTRA, INDIA |
B29592888 |
|
21 |
10217786 |
05/05/2010 |
1,800,000,000.00 |
SREI
INFRASTRUCTURE FINANCE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA - 700046, WEST BENGAL, INDIA |
A84451566 |
|
22 |
80020443 |
15/03/2013 * |
33,030,000,000.00 |
IDBI BANK
LIMITED |
IDBI TOWER WTC
COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA |
B71698799 |
* Date of charge modification
GENERAL INFORMATION
Subject incorporated on 1st September 1989 is one of the leading
Engineering, Procurement and Construction Company in India and 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.
REVIEW OF
OPERATIONS
Total Revenue of the Company decreased by more than 23 % from Rs.
90022.100 Millions in FY 2011-12 to Rs. 69197.800 Millions in FY 2012-13.
Their Company continued to sustain EBITDA margin despite increase in
certain input costs by continuously focusing on optimum utilisation of
resources and enhancing its operational efficiencies. The EBITDA has increased
from Rs. 9273.500 Millions in FY 2011-12 to Rs. 10031.100 Millions in FY
2012-13.
Profit before Tax has decreased by more than 8 % from Rs. 4,408.600 Millions
in FY 2011-12 to Rs. 4055.800 Millions in FY 2012-13.
The Company has provided Rs. 1528.700 Millions (Previous Year INR
1458.100 Millions) for depreciation and Rs. 1256.500 Millions (Previous Year
Rs. 1407.700 Millions) towards Current Income Tax.
CONTRACTS
The Company has secured the following major contracts during the year;
Minerals and
Metals SBU -
1)
Contract for supply, constructions, fabrication,
testing, commissioning and guarantee of 2X20000 MT DAP/ NP (DI Ammonium
Phosphate/ Nitrogen, Potassium) Products storage Sili and Screen House for
Indian Farmer Fertilizers Co-operative Limited (IFFCO) at a total price of Rs.
668.400 Millions
2)
Contract for 4.2 MTPA Capacity Expansion Contract
for Erection of Mechanical Equipment of New Plate Mill at Rourkela Steel Plant
from Steel Authority of India Limited (SAIL) at a total price of Rs. 795.400
Millions
3)
Contract for Erection of 42,550 MT Structural steel
with paint for various units of Kalinganagar Project in the state Odhisa for
Tata Steel Limited at a total price of Rs. 669.400 Millions.
4)
Contract for Dismantling and Erection (Revamping)
project of Blast Fruance at Raigarh in the state of Chhattisgarh for Jindal
Steel and Power Limited at a total consideration of Rs. 400.000 Millions
Pipelines and Hydrocarbon
SBU -
5)
Contract for Mainline Works including small HDD
Works, Civil Works, Mechanical Works, TCP and Electrical Works, OFC Laying Woks
and instrumental Works of De-bottlenecking of a section of the Salaya-Mathura
Crude Oil Pipeline (SMPL) (Group A) passing through the state of Rajasthan and
Haryana and will eventually be terminating at Mathura in the state of Uttar
Pradesh at a total consideration of Rs. 1869.200 Millions for Indian Oil
Corporation Limited (IOCL).
Infrastructure SBU
-
6)
Sub-Contract for Civil work of Dam and Spillway
under Turial Hydro Electric Power Station Project at Mizoram, India for Patel
Engineering Limited at a total consideration of Rs. 1879.600 Millions
7)
Contract for execution of Upgradation of the road
from Thalassery (km 1+200) to Valavupura (km 55+200) of SH-30 in the state of
Kerala for Kerala State Transport Project in joint Venture with M/s. Sacyr for
a total contract price of Rs. 2349.900 Millions
Concession SBU -
8)
Contract for
Design, Build, Operate and Transfer 70 MLD Capacity Sewage Treatment Plant for
the City of Jamnagar in the state of Gujarat for at a Total Contract value of
Rs. 780.000 Millions
INDUSTRY OUTLOOK
AND WAY FORWARD
Market demand for EPC services emanates from both public and private players.
Government or Public Sector Projects aimed at developing infrastructure
facilities and boosting energy supply (Power, Oil and Gas) to meet with
increasing pace of economic growth are the major growth demand drivers for the
Construction Industry.
The financial year saw a significant slowdown in the pace of Industrial
Growth which impacted fresh investments in new projects. This led to lower
level of new order intake and has also slowed pace of execution of current
projects. Statutory clearances for their clients were also delayed in some
cases leading to delay in project progress.
The year also saw lengthening of working capital cycle in the business
as recovery of receivables from customers was taking more time in the current
industrial and liquidity scenario.
In the last three years, the global economy slowdown has resulted in
uncertainty for many in the Engineering and Constructions Industry world over.
Dearth of funds and slackening market demand resulting in overall deferring of
expansion plans of major industry players, extension in tendering and award of
Projects and delayed completions and elongation of the working capital cycle
for construction players. Clearly this is the phase of pain and churn for
infrastructure sector in India.
Nevertheless, the need for measures to make the infrastructure and
energy sector viable and capable of attracting capital has now been duly
acknowledged. The Government has taken up a number of initiatives to fast track
energy and infrastructure projects. Since, January 2013, through the Cabinet
Committee on Investment (CCI), the government has given nod to projects worth
Rs. 740000.000 Millions struck for years due to lack of clearances. The process
of granting environment and forest clearances for mega projects have also been
streamlined and made easier. The sheer demand for better infrastructure will
drive the sector out of its present turmoil.
Today, the Company is focused on optimizing its strategy and operations
to overcome the present economic and financial challenges to emerge as an even
stronger entity that can best leverage the opportunities once the business
environment regains its growth oriented trajectory. The emphasis has been on
reorienting its business strategy and enhancing its internal capabilities. The
Company is now approaching projects in a focused manner and concentrating on
improving bid success ratio rather than increasing the number of bids. The aim
is now to think about what the client is looking for and repackage their
experience and expertise and position ourselves as back integrated to the
supply chain and forward integrated into the operator’s mindset with world
class skills in support. The Company continues to focus on seeking general
pre-qualification with key customer and forge links with the PMCs and
technology providers.
Furthermore, 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 Countries to offset the impact of
slowdown in India.
FINANCE
The Company’s working capital requirements have been funded by the
Consortium of Bankers. The current working capital requirements have been
assessed and approved at Rs. 41500.000 Millions by the Working Capital
Consortium Banks. This represents an increase of Rs. 11000.000 Millions over
previously assessed limits. With these, the Company is in a comfortable
position to meet with working capital requirements for business operations.
The Company has already approached certain Banks for the enhanced
working capital assessed limits with a request to join the IDBI Bank Consortium
and for extending credit facilities for the working capital requirements of the
Company.
Their Company continues to enjoy credit facilities from Srei
Infrastructure Limited and Srei Equipment Finance Private Limited for
procurement of Construction Machineries and Equipments.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
I) Disputed
income tax demand pertains to disallownace under section 80-IA and
non-allowance of T.D.S. credit. |
22.200 |
2.000 |
|
II) Short payment of disputed entry tax |
0.000 |
0.200 |
|
III) Disputed sales tax demand pertains to sale in transit under
Andhra Pradesh VAT regulation |
24.700 |
9.300 |
|
IV) Service tax
demand arising from dispute with respect to benefit claimed Vide notification
1/2006 under Service Tax , exemption claimed for construction of tailing dam
etc. |
144.300 |
89.400 |
|
V) Claims
against the Company not acknowledged as debts pertains to various case of
arbitration cases filed by the sub- contractors for claim against additional work
done, claim for liquidated damage contractee , cess levied by contractee
under Building and Other Construction Workers Welfare Cess Act, 1996 (Cess
Act) etc. |
1239.200 |
473.400 |
|
VI) Guarantees
given by the Company on behalf of subsidiaries for contractual obligations |
23263.000 |
26257.000 |
|
VII) Loans
availed by subsidiary out of the credit facilities of the Company |
3742.500 |
3461.700 |
|
VIII) Guarantees
and Buyer's credit facility availed by the subsidiary out of limits of the
Company During the year
2012-13 the Company has received the draft Assessment Order from Income Tax
Department Assessment Year 2009-10 wherein the price at which the allotment
of shares by the company to its holding company is challenged. The total
adjustment in income of Rs. 1,789 million is indicative. The company has not
accepted the proposed adjustment and has filed objections to the DRP. In view
of the management, this being the draft order does not constitute a claim
against the co and on evaluation on the merits of the case the management
doesn’t consider the possibility of any outflow. |
2635.900 |
1140.700 |
FIXED ASSETS:
· Land
· Buildings
· Plant and equipment
· Furniture and fixtures
· Vehicles
· Ships vessels
· Motor vehicles
· Office equipment
· Computer software
·
Licenses and franchise
PRESS RELEASE:
CAMPAIGN BY
GREENPEACE INDIA IS MOTIVATED: ESSAR TELLS BOMBAY HIGH COURT
June 26, 2014
MUMBAI: Essar House Limited has alleged before the Bombay High Court that a campaign carried out by Greenpeace India against it (Essar Group) for preservation of forests was "motivated, controlled and instigated by external vested interests."
This was stated in an affidavit, filed by Essar on June 24, on a notice of motion taken out by the company in a suit praying that the defendants be restrained from publishing defamatory material with respect to the proposed Essar Coal-fired power plant project at Mahan in Madhya Pradesh.
Essar filed a defamation suit against Greenpeace and others in the High Court after the volunteers of the latter unfurled a huge banner from the Essar House at Mahalaxmi here saying "We kill forests."
In the notice of motion, Essar averred that the defendants have "acted maliciously and with a oblique motive of somehow furthering their narrow political agenda at the cost of the Essar Group's image, reputation and goodwill."
The affidavit referred to media reports which said "Intelligence Bureau in its confidential report to the Central Government said the activities of the defendants were heavily funded by donors and supporters based in US and Europe, primarily in Germany, Netherlands and Scandinavian countries whose intention appears to internationalise and publicise the alleged violation in international fora so as to negatively impact economic development in India and in particular mapped out Indian coal mining companies from developing domestic coal fields."
"It is but obvious that the development of domestic coal fields will reduce dependence on imported coal and hurt the economic interests of foreign coal producers and/or sellers," the affidavit said.
"If the foreign contributors to Greepeace India, i.e Defendant no 3, are linked to this who stand to derive economic advantage from perpetuating India's dependence on imported coal and/or India's economic development, then this is a matter of serious concern," the affidavit further said.
Essar further prayed that these issues may be considered while deciding the notice of motion.
Essar Projects
Bags $54 Million Deal From Saudi Arabian Oil Company
August 05, 2014
New Delhi: Essar Projects on
Tuesday said it has bagged a $54 million (over Rs. 3280.000 Millions) maiden
contract from Saudi Arabian national oil company Saudi Aramco.
"The $54-million EPC project involves the upgradation of a Crude
Stabilisation Unit at Aramco's Abqaiq Plant, in Shaybah, one of the largest
oilfields in the world," the company said in a statement.
The scope of work entails engineering, procurement and construction of a
crude tank, replacement of crude pumps and associated civil, piping, electrical
and instrumentation facilities. The project is scheduled to be completed in 29
months.
The Hydrocarbon SBU (strategic business unit) of Essar Projects, a global
engineering, procurement, construction (EPC) contractor, has secured the
contract from Saudi Aramco.
The company is already executing five other projects in the region in
the hydrocarbon sector.
"This contract is a reflection of our capability to undertake
global projects from reputed clients in this region. We will leverage the
capabilities gained to enhance our foot print in other Middle East
countries," said Amit Gupta, CEO of the Hydrocarbon SBU at Essar Projects.
The company has experience in refinery projects having previously
executed a world-scale grass-roots refinery at Vadinar, Gujarat, with an
initial capacity of 10 million tonnes per annum, which was gradually expanded
to 14 million tonnes and then 20 million tonnes.
It also executed the supporting infrastructure and facilities that
include SBM for crude unloading, product jetty for refinery product export, a
tank farm with total tankage of 3 million cubic metres for crude, products and
intermediate and 77 MW of captive power plant.
ESSAR PROJECTS
RESTRUCTURES BUSINESS, EYES $3 BN IN REVENUE
Jun 08 2011
Mumbai: Essar Projects (India) Limited, the unlisted engineering and construction firm of the $20 billion steel to oil refiner Essar Group, has undergone a restructuring programme similar to the exercise at larger rival Larsen and Toubro Limited (L&T) designed to unleash the potential of its constituent businesses, making them more competitive.
“We started the process two years or so ago and decided that we would split our business into verticals and each one of those verticals will focus on a particular business,” Alwyn Bowden, president and chief executive officer, Essar Projects, said in an interview last week. “They would build on the track record that we’ve gained with our sister companies and take that track record to external markets.”
Reliance Industries Limited (RIL), too, had similar plans to offer its expertise to build refineries to third parties. But the project did not take off and it is largely focusing on captive projects such as refineries and petrochemical plants. An RIL spokesperson declined to comment.
L&T restructured itself into nine business verticals that act as independent companies with internal boards to be more competitive and offer a planned transition to senior management.
It has carved out power equipment, hydrocarbons, heavy engineering, infrastructure, buildings and factories, metals and minerals, electrical and automation products, electrical construction, machinery and industrial products as separate entities.
Bangalore-based infrastructure developer GMR Infrastructure Limited has also set up an in-house engineering, procurement and construction (EPC), division aiming at saving costs on projects and meeting deadlines. GMR, which runs and builds airports and lays roads, has an EPC division n that mirrors that of L&T.
Essar Projects, the first company started by the Ruias of Essar group 41 years ago by building a breakwater project for the Chennai Port Trust, later expanded to civil and industrial construction.
It built Essar Energy’s 14 million tonnes per annum (mtpa) refinery at Vadinar in Gujarat and Essar Steel’s 9.6 mtpa integrated steel plant at Hazira.
Each of the businesses is being turned into a separate company under the parent with its own chief executive and business plan. They will bid for projects independent of each other—both internally and externally.
The businesses are steel, power, offshore, hydrocarbon, ports and jetties, pipelines and terminals, civil and building, heavy engineering and refinery expansion.
“Any large group which has experience in executing large infrastructure projects such as refineries, ports, roads, steel plants and other projects develops significant expertise and project management skills around equipment procurement, engineering and construction management,” said Jai Mavani, executive director at consulting and audit firm PricewaterhouseCoopers Pvt. Limited (PwC), the Indian arm of the global audit and consulting firm. “Therefore, starting a dedicated project division is a natural extension of the skill sets and experience.”
Mavani did not want to comment on company specific developments, but added that with many large infrastructure and industrial projects being implemented, existing engineering, procurement and construction companies were stretched for bandwidth.
The company, which currently earns around 65% of its revenue from executing orders for group firms, also wants to eventually move the mix of internal to external orders to 50:50 and derive half its revenue from overseas. Two years ago, around 90% of revenue came from executing projects for Essar Group companies.
“The reason for wanting to do this is to have diversity, to protect ourselves from cycles, from unforeseen events, so it’s a risk management positioning as much as anything,” Bowden said.
“For large projects, quite often, you need companies with significant balance sheet depth to prequalify. Therefore, entry of a reputed player is always welcome,” PwC’s Mavani said.
The decision to offer its services to third parties is already paying off. Over the past two years, Essar Projects has secured two contracts from Oil and Natural Gas Corp. Limited worth a total $450 million and a $304 million order from Indian Oil Corp. Limited for building a refinery at Paradip in Orissa.
Overseas, it recently won the mandate to build a private airport for Exxon Mobile Corp. in Papua New Guinea for $55 million and secured a $320 million mandate to build a jetty and tanking terminal for the Jurong Aromatics Complex in Singapore.
On the back of the robust increase in its order book to $5.2 billion as of March, the company expects annual revenue to rise to almost $3 billion by the end of the current fiscal year from $2 billion at the end of the last one.
Still, it hasn’t exactly been a cakewalk for the company. Despite having executed such a large number of projects for sister companies, it wasn’t a case of winning orders by default because of the Essar name.
“It’s not mandated that an Essar Group project has to come to us. We’ve lost projects because it was felt that another entity was better placed to deliver,” Bowden said.
Still, while various group companies have evaluated Essar Projects’ performance against rivals and have gone through the process of discussions and negotiations with both companies, “invariably, the decision is to continue with us”, he said.
To be sure, winning so many orders from group companies has its drawbacks. It has often been disqualified for government projects at the pre-qualification stage as the experience of executing projects for group companies is discounted.
“The hardest task masters are your own sister companies because for them it has to be delivered on time and it’s the company’s own money again. To me, it’s not the right kind of argument,” Bowden said.
Consequently, it has tied up with other infrastructure companies to bid for upcoming road projects. India was scheduled to hand out road projects worth $50 billion in the fiscal year that ended 31 March, but has consistently missed targets for building roads, ports and other infrastructure, dampening private interest.
ESSAR PROJECTS
SECURES US$80 MILLION CONTRACT IN ABU DHABI
MAY 23, 2013
Mumbai: Essar Projects (EPL), a global Engineering, Procurement and
Construction (EPC) contractor has bagged three new orders totalling US$80m in
Abu Dhabi underpinning its presence in the Middle East market.
TAKREER has awarded a direct contract to EPL for EPC works,
commissioning and start-up for a spent caustic treatment plant of capacity 3.6
cubic meter per hour at Abu Dhabi refinery. Merichem Process Technologies,
Houston is the technology partner for the project.
Samsung Engineering, Korea has awarded a contract to EPL for civil works
for the Carbon Black and Delayed Coker (CBDC) project for the Ruwais refinery.
G. S. Engineering, Korea has awarded construction of twin Inter Refinery
Pipelines (IRP); one being a 28 inches x 94.6 km, Jet A1 pipeline and the other
being a 28 inches x 94.6 km, gas oil pipeline.
Mr Alwyn Bowden, President and CEO, Essar Projects, said, “The Middle
East is a key market for Essar Projects. These wins are strategically important
steps in reinforcing our global footprint, and build on our existing presence,
executing projects in South East Asia, India, Africa, and the USA.”
Commenting on the development, Mr Amit Gupta, CEO - Hydrocarbons, said, “There
is a huge potential in the hydrocarbons space in the Middle East. Essar
Projects is committed to growth in the region, and has already set up local
offices in United Arab Emirates, Sultanate of Oman, Kuwait, Qatar and Kingdom
of Saudi Arabia in order to actively win and execute mega projects in the
region."
Mobilization activities for all of these contracts are underway. The EPC
for the spent caustic plant is scheduled for completion in 27 months; the civil
contract for CBDC is to be completed in 22 months, and the time frame for the
IRP twin pipeline is eight months.
Takreer is considered to be a prominent oil refining company regionally
and internationally, contributing strongly to the rapid growth of UAE economy.
Since inception, Takreer has maintained its position as a leading refining
company, thanks to high standards and efficient refining operations, consistent
with sound health, safety and environment practices, as well as world standard
performance of both operations and employees.
About Essar Projects
Essar Projects is a global Engineering, Procurement and Construction (EPC)
company offering a unique collaborative end to end project development and
delivery model for major (mega) projects, back integrated into the supply chain
and forward integrated into the operator’s mind set through its sister company
links.
EPL offers its expertise to the following industries: oil and gas (upstream,
mid-stream and downstream) including cross country pipelines and terminals -
offshore and onshore, infrastructure (ports and marine, civil and building),
power (including hydroelectric) and minerals and metals and has presence in
over 20 countries spread across five continents. The company has over four
decades of experience in delivering mega projects and has recently added a
concessions business to its product offerings. EPL is headquartered in Dubai
and operates across regions through wholly owned subsidiaries.
EPL has ‘in house’ a large Engineering and Procurement division as well
as operating extensive fabrication facilities and a large construction
equipment bank operated from a low cost Indian base.
About Hydrocarbon Business
EPL
has proven capabilities in delivering world-class facilities to the hydrocarbon
industry. The company has successfully executed various contracts for 'Blue
Chip' clients such as Indian Oil Corporation Limited (IOCL), GAIL (India)
Limited (GAIL) and Gujarat State Petronet Limited (GSPL). EPL has delivered one
of the most advanced and mega-scale refineries of the world at a single
location in Gujarat, India by completing the 20 MMTPA integrated refinery for
Essar Energy Plc. with a Nelson Complexity Index of 11.8. It has been built
with state-of-the-art technology and gives our client Essar Energy the
capability to produce petrol and diesel suitable for use in India as well as
advanced international markets. The facility is capable of processing heavier
crudes, resulting in increased gross margin revenue for the client.
EPL is currently executing US$400 million OSBL works at Jurong Aromatics
Complex in Singapore for Jurong Aromatics Corporation (JAC). EPL is currently
executing nine process units on a LSTK basis for the 15 MMTPA refinery at
Paradeep in Odisha (India) for IOCL. EPL is also executing on an EPC basis a
fertiliser plant at Durgapur, West Bengal (India) for Matix Fertilizers and
Chemicals Limited of ammonia capacity 2,200 TPD and urea capacity 3,850 TPD,
which is the biggest urea fertilizer plant in India.
CMT REPORT (Corruption, Money Laundering and 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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.87 |
|
|
1 |
Rs.99.63 |
|
Euro |
1 |
Rs.78.22 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
33 |
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.