MIRA INFORM REPORT

 

 

Report No. :

328329

Report Date :

22.06.2015

 

IDENTIFICATION DETAILS

 

Name :

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

 

 

Formerly Known As :

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

 

ESSAR CONSTRUCTIONS LIMITED (w.e.f. 18.10.2000)

 

ESSAR STENA LIMITED

 

 

Registered Office :

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

Tel. No.:

91-22-66601100/ 24950606/ 50011100

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.09.1989

 

 

Com. Reg. No.:

11-053280

 

 

Capital Investment / Paid-up Capital :

Rs.1240.000 Million

 

 

CIN No.:

[Company Identification No.]

U99999MH1989PLC053280

 

 

IEC No.:

Not Available

 

 

TIN No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUME03801A

 

 

PAN No.:

[Permanent Account No.]

AAACE2358J

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

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

 

 

No. of Employees :

Information denied by management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (33)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Exist 

 

 

Comments :

Subject is a part of “ESSAR GROUP”. It is an established company having moderate track record.

 

The company has seen 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 as well as net profitability during FY14.

 

However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct.  

 

In view of vast promoter’s 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.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Bank facilities = BB (Suspended)

Rating Explanation

Inadequate credit quality and high credit risk.

Date

07.04.2015

 

 

Rating Agency Name

CARE

Rating

Short Term Bank facilities = A4 (Suspended)

Rating Explanation

Minimal degree of safety and very high credit risk

Date

07.04.2015

 

 

RBI DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

 

 

INFORMATION DENIED

 

Management Non Co-Operative (Tel No.: 91-22-67335000)

 

 

LOCATIONS

 

Registered / Corporate Office :

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

Tel. No.:

91-22-66601100/ 24950606/ 50011100

Fax No.:

91-22-66601809/ 24954324

E-Mail :

corporatecommunications@essar.com

brijesh.shah@essar.com

vikasparadkar@yahoo.com

vasant.savla@essar.com

Website :

www.essar.com

 

 

Branch Office 1 :

Equinox Business Park (Peninsula Techno Park), Off Bandra Kurla Complex, LBS Marg, Kurla (West), Mumbai 400070, Maharashtra, India

 

 

Branch Office 2 :

44 Km Stone, S H No 25, Jamnagar Okha Highway, Vadinar District Jamnagar – 361305, Gujarat, India

 

 

Other Branch Offices :

Located at:

 

·         Ahmedabad

·         Mumbai

·         Chennai

·         Hazira

·         New Delhi

·         Visakhapatnam

 

 

Overseas Offices :

Located at:

 

·         Africa

·         Canada

·         Czech Republic

·         China

·         Indonesia

·         Kenya

·         Korea

·         Madagascar

·         Mauritius

·         United Kingdom

·         Qatar

·         UAE

·         USA

·         Vietnam

 

 

DIRECTORS

 

AS ON 30.12.2014

 

Name :

Mr. Krishnamurthy Nagaraj Tirumakudlu Narasipur

Designation :

Director

Address :

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

Date of Birth/Age :

21.07.1934

Date of Appointment :

20.03.2015

DIN No.:

00048680

 

 

Name :

Mr. Venkatesan Venkataramansinganallur

Designation :

Director

Address :

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

Date of Birth/Age :

01.10.1939

Date of Appointment :

20.03.2015

DIN No.:

00004010

 

 

Name :

Mr. Alwyn Keith Bowden

Designation :

Managing director

Address :

Casa Grande, Tower No.1, Flat No.1803, 18th Floor, Lower Parel, Mumbai – 400013, Maharashtra, India

Date of Birth/Age :

06.12.1957

Qualification :

BE - Civil (Swansea University (UK))

Date of Appointment :

18.07.2014

DIN No.:

01349295

PAN No.:

AUEPB7254M

 

 

Name :

Mr. Mahesh Sitaram Ambegaonkar

Designation :

Whole-time director

Address :

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

Date of Birth/Age :

05.08.1946

Qualification :

Mechanical Engineer

Date of Appointment :

01.12.2013

DIN No.:

02341599

PAN No.:

AACPA4652N

 

 

Name :

Mr. Mukesh Rambihari Rohatgi

Designation :

Director

Address :

D 190, Sector 41, G B Nagar, Noida – 201303, Uttar Pradesh, India

Date of Birth/Age :

27.09.1949

Date of Appointment :

26.09.2013

DIN No.:

00136067

 

 

Name :

Mr. Jitendra Balkrishnan 

Designation :

Director

Address :

208 Tower – 2, Casa Grande, Senapati Bapat marg, Lowe Parel, Mumbai – 400013, Maharashtra, India 

Date of Birth/Age :

08.05.1949

Date of Appointment :

30.12.2014

DIN No.:

00028320

 

 

Name :

Mr. Shailesh Nehalchand Shawa

Designation :

Whole Time Director

Address :

53 Beach Towers, Tata Press Lane, Prabhadevi, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

24.07.1963

Date of Appointment :

27.05.2014

DIN No.:

03163208

 

 

MAJOR SHAREHOLDERS

 

AS ON 30.12.2014

 

Names of Shareholders

 

No. of Shares

Essar Projects Limited, UAE

 

123998000

Mohan Singh Manral Nominee Essar Projects Limited, UAE

 

4

Prasad V. Devata Nominee Essar Projects Limited, UAE

 

4

Savla Mavji Vasant Nominee Essar Projects Limited, UAE

 

4

Pareek R Gulabchand Nominee Essar Projects Limited, UAE

 

4

Ashok Goyal Nominee Essar Projects Limited, UAE

 

8

Ravindra Mohnot Nominee Essar Projects Limited, UAE

 

4

Total

 

123998028

 

Equity Share Break up (Percentage of Total Equity)

 

AS ON 30.12.2014

 

Category

Percentage

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

100.00

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

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

 

 

Products / Services :

Industrial Plants, Civil and Irrigation Projects

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

Not Divulged 

 

 

Imports :

Not Divulged 

 

 

Terms :

 

Selling :

Not Divulged 

 

 

Purchasing :

Not Divulged 

 

PRODUCTION STATUS (NOT AVAILABLE)

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged 

Name of the Person :

Not Divulged 

Contact No.:

Not Divulged 

Since How Long Known :

Not Divulged 

Experience :

Not Divulged 

Maximum Limit Dealt :

Not Divulged 

Remark :

Not Divulged 

 

 

Customers :

Reference :

Not Divulged 

Name of the Person :

Not Divulged 

Contact No.:

Not Divulged 

Since How Long Known :

Not Divulged 

Experience :

Not Divulged 

Maximum Limit Dealt :

Not Divulged 

Remark :

Not Divulged 

 

 

No. of Employees :

Information denied by management

 

 

Bankers :
  • Yes Bank Limited, Nehru Centre, 9th Floor, Discovery of India, Dr.A.B. Road, Worli, Mumbai – 400018, Maharashtra, India
  • IDBI Bank Limited, IDBI Towertc Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India
  • Dena Bank, Corporate Business Branch, C- 10, “G” Block, Bandra – Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

 

 

Facilities :

SECURED LOANS

31.03.2014

Rs. In Million

31.03.2013

Rs. In Million

LONG TERM BORROWINGS

 

 

Term loans from others

15239.000

11374.100

SHORT TERM BORROWING

 

 

Working capital loans from banks

19551.800

16366.800

Total

34790.800

27740.900

 

Financial Institution :

SREI Equipment Finance Private Limited, “Vishvakarma”, 86C, Topsia Road, Kolkata – 700046, West Bengal, India 

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai - 400018, Maharashtra, India

PAN No.:

AADFD2337G

 

 

Name :

C N K and Associates LLP

Chartered Accountants

Address :

501-502 Narain Chambers, M G Road, Vile Parle East, Mumbai – 400057, Maharashtra, India

PAN No.:

AACFE8587E

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Holding Company :

Essar Projects Limited, Dubai

 

 

Ultimate holding Company :

Essar Global Funds Limited, Cayman Island (Formerly Essar Global Limited, Cayman Island)

 

 

Subsidiary Companies :
  • Essar Offshore Subsea Limited, India
  • Essar Constructions Overseas Limited, Mauritius (ECOL)
  • Krios Holdings Pte. Limited (Krios)
  • Essar Project Management Company Limited, Dubai (Subsidiary of ECOL) (EPMC)
  • Essar Projects (PNG) Limited (Subsidiary of ECOL)
  • Kadmos Holdings Pte. Limited (Subsidiary of Krios)
  • Essar Projects Singapore Pte. Limited (Subsidiary of Krios)
  • Essar Constructions Limited, Dubai (Subsidiary of EPMC)
  • Lucknow Varanasi Tollways Private Limited
  • Essar Refinary Projects Limited
  • Tirunelveli Wind Farms Limited

 

 

Fellow Subsidiary Companies :
  • Essar Projects UK Limited, United Kingdom
  • PT Essar Projects Indonesia, Indonesia
  • Essar Projects Middle East FZE, Dubai
  • Essar Projects(USA) LLC, Delaware USA
  • Essar Projects East Africa Limited, Tanzania

 

 

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

transactions:
  • Essar Steel India Limited (Formerly Essar Steel Limited)
  • Essar Oil Limited
  • Essar Shipping Limited
  • Essar Power Limited
  • Vadinar Oil Terminal Limited
  • Vadinar Power company Limited
  • Essar Power MP Limited
  • Bhander Power Limited
  • Aegis Limited
  • Essar Power Gujarat Limited
  • Essar Logistic Limited
  • Essar Infrastructure Services Limited
  • Essar Bulk Terminal Limited
  • Essar Bulk Terminal (Salaya) Limited
  • Essar Bulk Terminal Paradeep Limited
  • Essar Oilfield Services Limited, Mauritius
  • Essar Power Transmission Limited
  • Essar Power (Orissa) Limited
  • Vadinar Port & Terminal Limited
  • Essar Power (Jharkhand) Limited
  • Essar Steel Minnesota LLC
  • Essar Power Salaya Limited
  • Essar Power Hazira Limited
  • Navbharat Power Private Limited
  • Essar Oilfield Service Limited
  • Essar Windpower Private Limited
  • Essar Ports Limited
  • Lucknow Varanasi Tollways Private Limited
  • Essar Oil Vadinar Limited
  • Aegis Global Services FZE
  • Essar Telecom Limited
  • Equinox Business Park Private Limited

 

 

Joint Ventures :
  • Essar, Dong Fang Electric Corp. China, Coastal Project P. Limited Consortium
  • Essar Projects (India) Limited-JSC Stroytransgaz Russia
  • Essar Projects Saudi Company LLC, Saudi Arabia

 

 

CAPITAL STRUCTURE

 

As on 30.12.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

130000000

Equity Shares

Rs.10/- each

Rs.1300.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

123998028

Equity Shares

Rs.10/- each

Rs.1240.000 Million

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1,240.000

1,240.000

1,240.000

(b) Reserves & Surplus

15,265.700

14,778.500

11,961.500

(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)

16,505.700

16,018.500

13,201.500

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

15,239.000

11,374.100

16,104.300

(b) Deferred tax liabilities (Net)

564.500

420.100

342.600

(c) Other long term liabilities

3,800.200

17,833.000

9,639.300

(d) long-term provisions

207.400

152.500

100.600

Total Non-current Liabilities (3)

19,811.100

29,779.700

26,186.800

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

19,850.300

16,366.800

12,358.800

(b) Trade payables

15,641.200

19,679.400

17,338.000

(c) Other current liabilities

15,134.100

16,648.800

25,232.000

(d) Short-term provisions

282.500

390.100

247.600

Total Current Liabilities (4)

50,908.100

53,085.100

55,176.400

 

 

 

 

TOTAL

87,224.900

98,883.300

94,564.700

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

7,481.700

8,826.600

9,983.600

(ii) Intangible Assets

1,498.100

454.300

492.200

(iii) Capital work-in-progress

634.800

2,108.200

1,841.100

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

21,515.900

21,029.400

9,961.100

(c) Deferred tax assets (net)

347.300

741.800

336.800

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

682.900

290.900

4,424.100

Total Non-Current Assets

32,160.700

33,451.200

27,038.900

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

21,176.800

19,929.400

20,481.800

(c) Trade receivables

19,550.500

18,641.200

16,890.500

(d) Cash and cash equivalents

2,591.400

2,202.400

2,345.200

(e) Short-term loans and advances

9,337.900

24,430.800

27,762.900

(f) Other current assets

2,407.600

228.300

45.400

Total Current Assets

55,064.200

65,432.100

67,525.800

 

 

 

 

TOTAL

87,224.900

98,883.300

94,564.700

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

44,974.700

66,684.300

88,198.000

 

 

Other Income

2,138.300

2,092.200

1,824.000

 

 

TOTAL                                         (A)

47,113.000

68,776.500

90,022.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

3,938.200

7,038.000

10,045.900

 

 

Purchase of Stock-in-trade

14,924.500

28,050.100

39,055.000

 

 

Changes in Inventories of finished goods, work-in-progress and stock-in-trade

66.200

182.700

51.600

 

 

Employee Benefits Expenses

2,904.700

3,217.900

3,126.000

 

 

Other Expenses

16,314.200

20,678.000

28,470.000

 

 

TOTAL                                         (B)

38,147.800

59,166.700

80,748.500

 

 

 

 

 

 

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

8,965.200

9,609.800

9,273.500

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

6,689.500

4,025.300

3,406.800

 

 

 

 

 

 

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

2,275.700

5,584.500

5,866.700

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION                     (F)

1,647.000

1,528.700

1,458.100

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX (E-F)                  (G)     

628.700

4,055.800

4,408.600

 

 

 

 

 

Less

TAX                                                                  (H)

405.100

1,333.800

1,497.700

 

 

 

 

 

 

PROFIT/(LOSS) AFTER TAX (G-H)                    (I)

223.600

2,722.000

2,910.900

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Contract Income

1585.800

3384.400

3427.400

 

 

Interest and Dividend

151.500

90.600

30.600

 

TOTAL EARNINGS

1737.300

3475.000

3458.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Components and Stores parts

3720.500

5777.100

7376.300

 

 

Capital Goods

6.400

354.800

1960.200

 

TOTAL IMPORTS

3726.900

6131.900

9336.500

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

1.80

21.95

23.48

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

3127.900

2962.100

714.400

Cash generated from operations

NA

NA

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT/Sales)

(%)

0.50

4.08

3.30

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

19.93

14.41

10.51

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.97

5.41

5.35

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.04

0.25

0.33

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

2.32

1.92

2.21

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.08

1.23

1.22

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

Rs. In Million

Rs. In Million

Rs. In Million

Share Capital

1240.000

1240.000

1240.000

Reserves & Surplus

11961.500

14778.500

15265.700

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

13201.500

16018.500

16505.700

 

 

 

 

Long Term borrowings

16104.300

11374.100

15239.000

Short Term borrowings

12358.800

16366.800

19850.300

Current Maturities of Long term debt

714.400

2962.100

3127.900

Total borrowings

29177.500

30703.000

38217.200

Debt/Equity ratio

2.210

1.917

2.315

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

Rs. In Million

Rs. In Million

Rs. In Million

Sales

88,198.000

66,684.300

44,974.700

 

 

(24.393)

(32.556)

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

Rs. In Million

Rs. In Million

Rs. In Million

Sales

88,198.000

66,684.300

44,974.700

Profit

2,910.900

2,722.000

223.600

 

3.30%

4.08%

0.50%

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

----------

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter ID Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

----------

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

----------

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

----------

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

LITIGATION DETAILS

 

CASE DETAILS

Bench:- Bombay

Presentation Date: 10/03/2015

Lodging No. :

CPL/214/2015

 

Filing Date:-

10/03/2015

Reg. No.:

CP/613/2015

Reg. Date :

08.06.2015

Petitioner:-

POLESTAR MARITIME LIMITED

Respondent:-

ESSAR PROJECTS (I) LIMITED. CIN NO. U99999MH1989PLC053280

Petn. Adv:-

V. SUBRAMANIAN (100)

 

 

District:-

MUMBAI

Bench:-

SINGLE

Category:-

COMPANY PETITION U/SEC

433,434,439 COMPANIES ACT

Status:-

Pre-Admission                                                    

Stage:-

Last Date:-

07.07.2015

Last Coram:-

ACCORDING TO SITTING LIST

 

 

Act. :

Companies Act and Rules 1956

Under Section :-

433 434

 

 

UNSECURED LOANS:

 

Particulars

31.03.2014

Rs. In Million

31.03.2013

Rs. In Million

SHORT TERM BORROWINGS

 

 

Intercorporate borrowings

298.500

0.000

Total

298.500

0.000

 

 

REVIEW OF OPERATIONS

 

Total Revenue of the Company has declined by more than 30% from Rs. 68776.500 Million in Financial Year 2012-13 to Rs. 47113.000 Million in Financial Year 2013-14.

 

Profit before Tax has decreased by more than 75 % from Rs. 4055.500 Million in Financial Year 2012-13 to Rs. 629.100 Million in Financial Year 2013-14.

 

The Company has provided Rs. 1647.000 Million (Previous Year Rs. 1528.700 Million) for depreciation and Rs. 260.700 Million (Previous Year Rs.1256.500 Million) towards Current Income Tax.

 

INDUSTRY OUTLOOK AND WAY FORWARD:

 

A country S infrastructure paves the way for its economic growth. In line with this, the government in its 12th Five Year Plan envisioned investment in infrastructure sector to upsurge to USD 1 trillion. While number of mega projects’ like the Mumbai and Chennai Metros, IOCL Paradip Refinery, Burnpur Steel Plant Expansion and Modernisation Plant (SAIL), Koldam Hydropower Plant (NTPC), Dahej Petrochemical Complex (ONGC Petroadditions Limited) worth more than Rs.15.000 Million are ready to start operations in 2014, the policy paralysis of the past few years and high interest rates impacted particularly the infrastructure sector in India and caused a drag on economic growth. The new Government, however, has shown positive intent by according priority to housing, transportation (roads and railways) and power (energy) sectors and so infrastructure development is expected to pick up pace, giving boost to EPC market. For an EPC companies which for the last few years have been plagued with a market slow down, elongated working capital cycles and dearth of funds the timing is becoming ripe to leverage their experience. The Company is not exception to this and they intend to work on the clientele base that they have built over the years. Their teams have been tracking and pursuing scale opportunities with major clients in public as well as private sectors. While they leverage their experience in the Oil and Gas sector (onshore and offshore); they are planning for a strategic entry into the arena of LNG Terminals. At the same time, they are also tapping infrastructure opportunities in sectors like road, railway/metro, thermal and hydro power, water pipelines. Pre-fabricated and precast housing is a new area, which also is being tapped for EPC opportunities.

 

Focused and aggressive business development have begun to yield results with new orders worth over Rs. 2,000 Crores being booked in the first 2 months of 2014-15. In addition, EPC opportunities worth around Rs. 10,000 Crores have been cited as Target projects in India for 2014-15 and are being aggressively pursued. These are with various PSUs clients like ONGC, IOCL, BPCL, GAIL, NLC, RGPPL, MAHAGENCO, NEEPCO, NHPC, NTPC, BHEL, UJVNL, SSNNL, CVPPL, JKSPDC, NHAI, MORTH; and also with some private players viz. JSPL & TATA.

 

 

CORPORATE INFORMATION

 

The company 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.

 

 INDEX OF CHARGE:

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10557696

02/01/2015

830,000,000.00

SREI EQUIPMENT FINANCE LIMITED

'VISHWAKARMA', 86C, TOPSIA ROAD,, KOLKATA, WEST BE 
NGAL - 700046, INDIA

C47444245

2

10539803

05/12/2014

750,000,000.00

YES BANK LIMITED

NEHRU CENTRE, 9TH FLOOR, DISCOVERY OF INDIA,, DR. 
A. B. ROAD, WORLI,, MUMBAI, MAHARASHTRA - 400018, 
INDIA

C38738001

3

10567674

03/12/2014

28,041,700.00

SREI EQUIPMENT FINANCE LIMITED

'VISHWAKARMA', 86C, TOPSIA ROAD,, KOLKATA, WEST BE 
NGAL - 700046, INDIA

C52564333

4

10528776

08/10/2014

2,400,000,000.00

AXIS BANK LIMITED

BOMBAY DYEING MILLS COMPOUND, WORLI, MUMBAI, MAHAR 
ASHTRA - 400025, INDIA

C32029647

5

10556003

22/09/2014

207,372,000.00

SREI EQUIPMENT FINANCE LIMITED

'VISHWAKARMA', 86C, TOPSIA ROAD,, KOLKATA, WEST BE 
NGAL - 700046, INDIA

C47242409

6

10515416

24/07/2014

500,000,000.00

IDBI BANK LIMITED

MITTAL COURT, 224, A WING, 2ND FLOOR,, NARIMAN PO 
INT, MUMBAI, MAHARASHTRA - 400005, INDIA

C16750150

7

10517180

03/07/2014

1,250,000,000.00

SREI EQUIPMENT FINANCE LIMITED

'VISHWAKARMA', 86C, TOPSIA ROAD,, KOLKATA, WEST BE 
NGAL - 700046, INDIA

C18641183

8

10507299

26/06/2014

1,621,360,510.00

AXIS BANK LIMITED

9, RAFFLES PLACE, #48-01,, REPUBLIC PLAZA 1, SING 
APORE, - 048619, SINGAPORE

C10049997

9

10461523

31/10/2013

2,150,000,000.00

CENTRAL BANK OF INDIA

CORPORATE FINANCE BRANCH, 1ST FLOOR,, MMO BUILDIN 
G, FORT,, MUMBAI, MAHARASHTRA - 400023, INDIA

B90054701

10

10456171

28/09/2013

1,700,000,000.00

SREI INFRASTRUCTURE FINANCE LIMITED

VISHWAKARMA,86C,TOPSIA ROAD (SOUTH),, KOLKATA, WES 
T BENGAL - 700046, INDIA

B87991154

 

 

*Date of modification Charges

 

 

FIXED ASSETS:

 

·         Land

·         Building

·         Plant and Machinery

·         Computer

·         Vehicles

·         Furniture and Fixture

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

Indian Rupees

US Dollar

1

Rs.63.85

UK Pound

1

Rs.98.12

Euro

1

Rs.71.28

 

 

INFORMATION DETAILS

 

Information Gathered by :

DIP

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

VNT

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

0

--BUSINESS SCALE

1~10

3

--PROFITABILITY

1~10

3

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

2

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

29

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NB

NEW BUSINESS

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.