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| Name of Company | Essar Oil Ltd |
| BSE Code | 500134 |
| NSE Code |
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| ICICI Code | |
| Established | |
| My Take | Dislike |
| Headquarters | |
| Promoters | The Ruia's |
| Story | Essar oil started commercial refinery production in May 2008 – that is why the revenue had a spurt from 500 odd Cr until FY08 to 37K Cr in FY09 and FY10. The refinery is located in Vadinar in Gujarat. |
| Sector | Oil |
| Sub-sector | Exploration, refinery, |
| Website | http://www.essar.com/section_level1.aspx?cont_id=fBlwNPJhC0c= |
| Positives | Has onshore and offshore drilling in India and Africa. |
| Negatives | Low NPM's of 0.08 in FY10, loss making from FY06 to FY09. 30 Cr profit for a 37K Cr revenue is abysmally low. In FY10, the company does not show any reserves as well. The company pays very low tax as well. The management is well known for scams – tax evasion, stating low profits so as to pocket the money. Promoters hold only 18% in the company and most of it is pledged – which gives the company no power. Pledged promoter stake reminds of the Satyam story – i.e 15% of total stake. Most of the GDR as well is held by group company Vadinar oil. No real institutional investors hold stake in this entity. 17K Cr market cost 550 times earnings. |
| Peers | Reliance |
| News | |
| Price @ blogged | 137.65 (26-Jun-10) |
Showing posts with label Oil. Show all posts
Showing posts with label Oil. Show all posts
Jun 26, 2010
Essar Oil Ltd - 500134
Essar Oil tax evasion
Tue Aug 18 2009, 02:40 hrs
Ahmedabad:
In a major setback to ESSAR Oil Ltd (EOL), the Gujarat High Court has dismissed its petition and allowed the Central Bureau of Investigation (CBI) to further investigate the case of criminal conspiracy, fraud and cheating registered against Chief Executive Officer Shishir Agarwal and vice-president P R Ashok. Some Customs and bank officials are also party to the alleged crime.
According to the details of the case, ESSAR is accused of evading customs duty of over Rs 36 crore in 1999. The company and its officials had allegedly hatched a conspiracy with Customs officials and paid only Rs 60 crore against a duty of Rs 96 crore.
The then Commissioner of Central Excise and Customs, M K Bhada, was one of the accused in the case along with some officials of the State Bank of Saurashtra. The CBI had booked the accused under various provisions of the Indian Penal Code and the Prevention of Corruption Act.
Source: http://www.indianexpress.com/news/essar-oil-duty-evasion-cbi-gets-hc-nod-for/503261/
Ahmedabad:
In a major setback to ESSAR Oil Ltd (EOL), the Gujarat High Court has dismissed its petition and allowed the Central Bureau of Investigation (CBI) to further investigate the case of criminal conspiracy, fraud and cheating registered against Chief Executive Officer Shishir Agarwal and vice-president P R Ashok. Some Customs and bank officials are also party to the alleged crime.
According to the details of the case, ESSAR is accused of evading customs duty of over Rs 36 crore in 1999. The company and its officials had allegedly hatched a conspiracy with Customs officials and paid only Rs 60 crore against a duty of Rs 96 crore.
The then Commissioner of Central Excise and Customs, M K Bhada, was one of the accused in the case along with some officials of the State Bank of Saurashtra. The CBI had booked the accused under various provisions of the Indian Penal Code and the Prevention of Corruption Act.
Source: http://www.indianexpress.com/news/essar-oil-duty-evasion-cbi-gets-hc-nod-for/503261/
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