MIRA
INFORM REPORT
|
Report Date : |
25.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
HINDUSTAN SHIPYARD LIMITED |
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Registered Office : |
406, Vikram
Towers, 16, Rajendra Place, New Delhi 110008 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
21.01.1952 |
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Com. Reg. No.: |
2064 |
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CIN No.: [Company
Identification No.] |
U74899DL1952PLC002064 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
VPNH00129D / VPNH00128C |
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PAN No.: [Permanent
Account No.] |
AAACH4275P / AAACH4275H |
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Legal Form : |
A Government of
India Company having limited Liability. |
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Line of Business : |
Undertaking ship repairs,
construction/fabrication of offshore platform, etc. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 5976000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a Government of India Company as all the Shares of the
Company are held by President of India and nominees. The Company has huge accumulated losses perhaps due to mismanagement,
corruption and red tapism. Payments are slow and delayed. Since it is a Government of India Company, it can be regarded as a
promising partner due to its exposure to the Company and hence your proposed
business dealings can be recommended. |
LOCATIONS
|
Registered Office : |
406, Vikram
Towers, 16, Rajendra Place, New Delhi 110008,India |
|
Tel. No.: |
91-11-2578450 /
2578469 / 25737425 |
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Fax No.: |
91-891-2577502/2577356/2577667
/ 25730029 |
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E-Mail : |
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Website : |
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Regional Office : |
C/o. Piccasso, 202 Churchgate Chambers, 5, New Marine Lines, Mumbai
400020, Maharashtra, India |
|
Contact Person : |
Mr. J. P.
Richards (Resident Representative) |
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Tel. No.: |
91-22-22624560 / 22615119 |
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Telefax No.: |
91-22-22871166 |
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Corporate/Administrative Office : |
Gandhigram [PO], Visakhapatnam 530005, Andhra Pradesh, India |
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Tel. No.: |
91-891-2577404/2577437 |
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Telefax No.: |
91-891-2577502 / 2577356 |
DIRECTORS
|
Name : |
Mr. Trilok Singh
Negi |
|
Designation : |
Director |
|
Address : |
A-G/2, M.S. Flats, Peshwa Road, Gole Market, New Delhi 110001, India |
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Date of Birth/Age : |
15.08.1947 |
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Name : |
Mr. Kreddy
Brahmananda Reddy |
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Designation : |
Director |
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Address : |
1st floor, Plot No. 73, Snehanagar Colony, Street No. 8,
Habsiguda, Hyderabad 500007, Andhra Pradesh, India |
|
Date of Birth/Age : |
08.03.1957 |
|
Date of Appointment : |
13.07.2006 |
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|
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|
Name : |
Mr. Ajit Tewari |
|
Designation : |
Director |
|
Address : |
08, Harbour Park, Siripuram Junction, Visakhapatnam 530 003, Andhra
Pradesh, India |
|
Date of Birth/Age : |
28.03.1949 |
|
Date of Appointment : |
03.02.2004 |
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|
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|
Name : |
Mr. Janardhan Yedurupad |
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Designation : |
Director |
|
Address : |
02, Varuna Park, Siripuram Junction, Visakhapatnam 530 003, Andhra
Pradesh, India |
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Date of Birth/Age : |
01.07.1946 |
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Date of Appointment : |
11.04.1998 |
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Name : |
Mr. Ramchandra |
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Designation : |
Director |
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Address : |
03, Varuna Park, Siripuram Junction, Visakhapatnam 530 003, Andhra
Pradesh, India |
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Date of Birth/Age : |
16.02.1952 |
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Date of Appointment : |
18.01.2003 |
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Name : |
Mr. Dinesh Kumar Goel |
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Designation : |
Director |
|
Address : |
C – 125, Enclave, Pitampura, Delhi 110034, India |
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Date of Birth/Age : |
25.07.1966 |
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Date of Appointment : |
14.08.2002 |
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|
Name : |
Mr. Binoy Kumar |
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Designation : |
Director |
|
Address : |
8-2-293/82, Plot No. 19, Jublee Hills, Hyderabad, Andhra Pradesh India |
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Date of Birth/Age : |
05.05.1960 |
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Date of Appointment : |
09.03.2004 |
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|
Name : |
Mr. Sreedhar Motamarry |
|
Designation : |
Director |
|
Address : |
49-36-46/6, Sitaram Nivas, Nggos Colony, Akkayya Palem, Visakhapatnam
530 003, Andhra Pradesh, India |
|
Date of Birth/Age : |
15.06.1969 |
|
Date of Appointment : |
31.07.2003 |
|
|
|
|
Name : |
Mr. Motilal Sachindra |
|
Designation : |
Director |
|
Address : |
33, Raja street, Kottivakkam, Chennai 600041, Tamilnadu, India |
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Date of Birth/Age : |
30.07.1940 |
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Date of Appointment : |
22.10.2002 |
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|
|
|
Name : |
Mr. Narendra Kumar Agarwal |
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Designation : |
Director |
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Address : |
81, Ashok Vihar, Phase I, New Delhi 110052, India |
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Date of Birth/Age : |
20.07.1942 |
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Date of Appointment : |
20.05.2003 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Hon’b;e President of India |
|
1368122 |
|
Ajit Tewari |
|
1 |
|
Janardhan Yedurupad |
|
1 |
|
Ravichandran |
|
1 |
|
Dinesh Kumar Goel |
|
1 |
|
|
|
|
|
Equity Share
Break-up |
|
Percentage of
Holding |
|
Government [Central and State] |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Undertaking ship
repairs, construction/fabrication of offshore platform, etc. |
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Products : |
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Imports : |
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Countries : |
Korea, Japan, Norway,
Germany |
GENERAL
INFORMATION
|
No. of Employees : |
4434 |
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|
|
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Bankers : |
Ø
Indian Bank
, Main Branch Lorven Plaza,
Dabagardens, Visakhapatnam 530 020, Andhra Pradesh Ø
State Bank
of India |
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|
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Banking
Relations : |
Satisfactory |
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Auditors : |
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|
Name : |
Brahmayya and Company Chartered Accountants |
|
Address : |
Suhasini 10-50-24, Siripuram, Visakhapatnam, Andhra Pradesh 530003,
India |
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|
|
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Associates/Subsidiaries
: |
All Government of
India Undertaking companies |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity Shares |
Rs. 1000/- each |
Rs. 1500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1443122 |
Equity Shares |
Rs. 1000/-
each |
Rs. 1443.122
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
1493.122 |
1443.122 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
0.950 |
0.950 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
1494.072 |
1444.072 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
704.684 |
68.324 |
|
|
2] Unsecured Loans |
|
6106.902 |
9816.904 |
|
|
TOTAL BORROWING |
|
6811.586 |
9885.228 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
8305.658 |
11329.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
|
445.273 |
393.042 |
|
|
Capital work-in-progress |
|
40.151 |
5.229 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
1090.131 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
1320.573 |
1553.771 |
|
|
Sundry Debtors |
|
1405.491 |
514.930 |
|
|
Cash & Bank Balances |
|
2816.994 |
1841.969 |
|
|
Other Current Assets |
|
819.136 |
897.983 |
|
|
Loans & Advances |
|
1719.820 |
1381.379 |
|
Total
Current Assets |
|
8082.014 |
6190.032 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
8216.337 |
6151.088 |
|
|
Provisions |
|
1697.859 |
679.509 |
|
Total
Current Liabilities |
|
9914.196 |
6830.597 |
|
|
Net Current Assets |
|
[1832.182] |
[640.565] |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Profit and Loss Account |
|
8562.285 |
11571.594 |
|
|
|
|
|
|
|
|
TOTAL |
|
8305.658 |
11329.300 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
|
3141.384 |
2355.845 |
|
|
Other Income |
|
265.369 |
469.672 |
|
|
Total Income |
|
3406.753 |
2825.517 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
[759.046] |
43.655 |
|
|
Provision for Taxation |
|
-- |
-- |
|
|
Profit/(Loss) After Tax |
|
[759.046] |
43.655 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw material consumed |
|
1901.922 |
1445.349 |
|
|
Salaries, wages and bonus |
|
926.429 |
829.392 |
|
|
Managerial remuneration |
|
2.319 |
2.086 |
|
|
Payment of Auditors |
|
0.129 |
0.088 |
|
|
Interest |
|
346.967 |
50.555 |
|
|
Insurance expenses |
|
7.150 |
1.451 |
|
|
Power and Fuel |
|
57.493 |
55.909 |
|
|
Depreciation |
|
40.635 |
40.715 |
|
|
Increased or decreased in finished goods |
|
1338.772 |
639.225 |
|
|
Other expenditure |
|
[456.017] |
[282.908] |
|
Total Expenditure |
|
4165.799 |
2781.862 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
[22.28] |
1.54 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
[24.16] |
1.85 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
[8.90] |
0.66 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
[0.50] |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
11.19 |
11.57 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
0.81 |
0.90 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was
incorporated on 21st January, 1952 at New Delhi having Company
Registration Number 2064.
Subject was
originally set up in 1941 in the private sector, Government took over this
company in January, 1952. The company
started large scale Shiprepair operation in 1971 and since 1985, diversified
its activities to construction of “Offshore Platforms” and “Structural Steel
Fabrication”.
The present
operations of the company are organised into three main divisions:-
1)
Shipbuilding
& Structural Fabrication
2)
Offshore
Platform Fabrication & Installation
3)
Shiprepairs
To improve the
performance, the company has undertaken following measures:-
Ø
Upgradation of
Design and improved utilisation of production facilities.
Ø
Better
Industrial Relations
Ø
Reduction of
surplus manpower through Voluntary Retirement Scheme.
Ø
Accreditation
of ISO 9001.
Ø
Stimulation of
work force for improvement of production / productivity with the introduction
of reward scheme.
Ø
Streamlining
of Welfare measures like Medical, Sports, Cultural facilities, etc., for
employees and their families.
Fixed Assets
Ø
Land
Ø
Building
Ø
On freehold Land
Ø
On Leasehold Land
Ø
Plant and Machinery
Ø
Wet Basin
Ø
Furniture
Ø
Boats and Launches
Ø
Motor Vehicles
Ø
Buildings
Ø
Form 8
Bankers Charges
Report as per Registry
|
Name of the company |
HINDUSTAN SHIPYARD
LIMITED |
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|
Presented By |
Mr. M. Sreedhar,
Company Secretary [Name and
Designation of the Official of the Company] |
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1) Date and description of instrument creating the change |
03.07.1999 a] D – 48, Agreement of Irrevocable Letter of Credit b] D-73, Agreement of hypothecation of Goods and Receivables. c] F-44, Counter Guarantee Charge registered on 23.09.1999. |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 500 Millions [including
sub limit of Rs. 50.000 Millions for Bank Guarantee] |
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3) Short particular of the property charged. If the property acquired
is subject to charge, date of the acquired of the property should be given |
First and
Continuous charge on all the present and future current assets [like
inventory, Book Debts, Receivables, Security Deposit etc.] outstanding in the
books of the Company. |
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|
4) Gist of the terms and conditions and extent and operation of the
charge. |
For Import of
goods from various countries provinces and to meet the commitments under the
Bank Guarantee for Company’s Performance Rate of Interest P.I.R. + 4%
Interest + Interest Tax, Cash Margin = 50% |
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|
5) Name and Address and description of the person entitled to the
charge. |
Lorven Plaza, Dabagardens, Visakhapatnam
530 020, Andhra Pradesh |
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6) Date and brief description
of instrument modifying the charge |
19.10.2005
|
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7) Particulars of modifications specifying the terms and conditions or
the extent of operations of the charge in which modification is made and the
details of the modification. |
The present
credit facilities have been revised the following manner :
The existing
limit of OD has been enhanced from Rs. 50 Millions to Rs. 150 Millions. Rate of interest 2% over BPLR with a
minimum of 13% plus Interest Tax.
Margin against OD 50% Now the overall
credit facility has been increased to Rs. 1350 Millions from Rs. 1250
Millions. All the existing securities
viz : first and continuous charge on all the present and future current
assets like inventory, Book debts and contracts, Receivable, security
deposits etc. and fixed assets of the Company will continue and be and are
hereby extended to enhanced OD facility of Rs. 150 Millions also. |
|
Corporate
identity number of the company |
U74899DL1952PLC002064 |
|
Name of the
company |
HINDUSTAN
SHIPYARD LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
406, Vikram Tower,
16, Rajindra Place, New Delhi 110008, India |
|
This form is for |
Modification of
charge |
|
Type of charge |
Hypothecation |
|
Particular of
charge holder |
Indian Bank ,
Main Branch Lorven Plaza,
Dabagardens, Visakhapatnam 530 020, Andhra Pradesh, India |
|
Nature of
instrument creating charge |
NA |
|
Date of
instrument Creating the charge |
NA |
|
Amount secured by
the charge |
Rs. 500.000
Millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
For import of
goods from various countries/provinces and to meet the commitment under the
Bank Guarantee for Company’s performance.
Rate of interest PLR + 4% interest Tax. Cash Margin 50% |
|
Description of
the property charged |
NA |
|
Particulars of
the property charged |
First and
continuous charge on all the present and future current assets [like
inventory, Book Debts, Receivables, Security Deposits etc.] outstanding in the
Books of the Company. |
|
Brief description
of the instrument modifying the charge under section 135 |
[a] D- 1
single/Joint DPN [b] D-73
agreement for hypothecation of goods [c] D-48
agreement of irrevocable LC [d] D-36 medium
Term Loan Agreement [e] D-71 POA for
collection of bills BDs and receivables [f] sanction
letter |
|
Particulars of
the present modification |
Credit facilities
have been increased from Rs. 900 Millions to Rs. 2460 Millions by sanction of
Rs. 600 Millions term loan for VRS and Rs. 960 Millions for import LC DP in
addition to existing limits. |
AS PER WEBSITE DETAILS
LIST OF CONTACT PERSONS:
|
Name |
Designation and Department |
Contact No. |
|
CDR. T. D. Ghani |
GM [Design] |
9951542676 |
|
CDR. R. B. Rao |
GM [Ship Repairs] |
9951542032 |
|
A. Narasinga Rao |
GM [ Production and Planning] |
9951542639 |
|
T. Suryanarayana |
DGM [Marketing] |
9951542054 |
|
T. Sai Prasad |
DGM [Purchase] |
9951542124 |
|
K. Venkateswara Rao |
Public Relation Officer |
9951542351 |
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 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. 39.49 |
|
UK Pound |
1 |
Rs. 78.33 |
|
Euro |
1 |
Rs. 56.78 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
24 |
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|