MIRA INFORM REPORT
|
Report
Date : |
30.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
THE SHIPPING CORPORATION OF INDIA LIMITED |
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Registered
Office : |
Shipping House, 245, Madame Cama
Road, Mumbai – 400 021, Maharashtra, India |
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Country
: |
India |
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Financials
(as on) : |
31.03.2005 |
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Date
of Incorporation : |
02.10.1981 |
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Com.
Reg. No.: |
11-8033 |
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CIN
No.: [Company
Identification No.] |
U63030MH2004PLC008033 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MUMT02250D |
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Legal
Form : |
It is a public
limited liability company. It is a Government of India Enterprise. The
company’s shares are listed on the Stock Exchanges. |
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Line
of Business : |
Ship Owners and Ship Operators. |
RATING & COMMENTS
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MIRA’s
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum
Credit Limit : |
USD
174000000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well-established and
reputed company having fine track. The company is owned by Government of
India. Available information indicates high responsibility of the company.
Financial position of the company is good. Business is active. Payments are
usually correct and as per commitments. The company can be
considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
Shipping House, 245, Madame Cama Road,
Mumbai – 400 021, Maharashtra, India |
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Tel.
No.: |
91-22-22026666 / 22023463 |
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Mobile
No.: |
91-22-22026905 / 22022933 |
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Fax
No.: |
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E-Mail
: |
011-82314 / 82371 / 82766 SCI IN |
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Website
: |
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Corporate
Office : |
“Chandralok”, 36
Janpath, New Delhi – 110 001, India |
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Tel.
No.: |
91-11-23322523/23322604/23322625 |
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Fax
No.: |
91-11-23713755 |
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Telex: |
031-65119 / 65701 |
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Regional offices: |
> "Shipping
House", 13, Strand Road, P. O. Box No. 2653, Kolkata - 700001, West Bengal, India Tel. No.
91-33-22482354 (18 Lines) Fax No.
91-33-22480377 / 2035 Telex : 021-7311 / 7851 / 2633 SCI IN > "Chandralok",
1st Floor, 36, Janpath, New Delhi - 110 001, India Tel. No.
91-11-23318325 / 2604 / 2627 Fax No.
91-11-23713755 Telex : 031-65119 / 65701 > "Jawahar Building", 6, Rajaji Salai, Chennai,
Tamil Nadu, India Tel No.
91-44-25231401 (10 Lines) Fax No.
91-44-25231218 Telex : 041-8200 / 8773 / 7199 SCIM IN > Abderdeen
Bazaar, Port Blair, Andaman Island - 744 101 Tel No. (03192)
21347/ 21590 / 21916 / 20971 Fax No. (03192)
21778 Telex : 069-5206 |
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Branches
: |
Bulk carrier &
Tanker division
> 250,
Sudam Kalu Ahire Marg, Worli, Mumbai - 400 025, Maharashtra, India Tel. No.
91-22-24937484/24937473 Fax No.
91-22-24937474/24973560 Telex :
011-76458 / 76459 / 76492 (B) Technical &
offshore services division
> "Nehru
Centre", Discovery of India Building, Dr. Annie Besant Road, Worli, Mumbai - 400 018,
Maharashtra, India Tel. No.
91-22-24931461 Fax No.
91-22-24950356 Telex : 011-71243 / 73422 International safety management cell (ISM cell)
> 250,
Sudam Kalu Ahire Marg, Worli, Mumbai - 400 025, Maharashtra, India Tel. No.
91-22-24950289 (Dir) / 24937484 Fax No. 91-22-24937474 Telex : 011-76458 / 76459 / 76492 Coastal / passenger
service
> "Apeejay
House", Dinshaw Wacha Road, Mumbai - 400 020, Maharashtra, India Tel. No.
91-22-22822101 Fax No.
91-22-22022438 Telex : 011-82016
SCI IN Freight & cargo
claims
> 16,
Nyaymurti G. N. Vaidya Marg, Mumbai - 400 023, Maharashtra, India Tel.
No. 91-22-22661835 Fax No.
91-22-22663617 Telex : 011-84649 / 84626 / 84868 Training centre
> Maritime
Training Institute, Adi Shankaracharya Marg, Powai, Mumbai - 400 053, Maharashtra,
India Tel. No.
91-22-25701430-33 Telefax : 91-22-25700338 Telex : 011-7224 "Bell Court House", 4th
Floor, 11-12, Blomfield Street, London - EC2M7AY Tel.
No. (0044-207) 6288988 Fax No. (0044-207)
6286858 Telex : 886087 / 8811621 / 7712408 (AB SCI G) Grams / Cables
: SHIPINDIA For London
Only : INDSHIPCO |
DIRECTORS
|
Name : |
Mr. P. K. Srivastava |
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Designation
: |
Director |
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Name : |
Mr. M. G. Bhide |
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Designation
: |
Director |
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Name : |
Mr. S. Hajara |
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Designation
: |
Chairman & Managing Director |
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Name : |
Capt. T. D. Hazari |
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Designation
: |
Director |
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Name : |
Mr. S. H. Khan |
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Designation
: |
Director |
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Name : |
Shri
Susheel Kumar |
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Designation
: |
Director |
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Name : |
Shri
R.K. Mitra |
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Designation
: |
Director |
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Name : |
Shri
S. S. Rangnekar |
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Designation
: |
Director |
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Name : |
Shri
Pradip Shah |
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Designation
: |
Director |
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Name : |
Dr. Pritam Singh |
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Designation
: |
Director |
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Name : |
Dr.
Pritam Singh |
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Designation
: |
Director |
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Name : |
Shri
N. C. Slnghal |
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Designation
: |
Director |
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Name : |
Mr. C. Balakrishnan |
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Designation
: |
Director |
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Name : |
Mr. P.C. Dhawan |
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Designation
: |
Director |
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Name : |
Mr. U.C. Grover |
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Designation
: |
Director |
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Name : |
Mr. Kailash Gupta |
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Designation
: |
Director |
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Name : |
Mr. B.K. Mandal |
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Designation
: |
Director |
KEY EXECUTIVES
|
Name : |
Shri
Dipankar Haldar |
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Designation
: |
Company
Secretary & legal Incharge |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
Category
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Promoters’ holdings
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Indian Promoters |
226190190 |
80.12 |
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Non promoter's
holdings
|
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Mutual Funds and UTI |
21674186 |
7.68 |
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Banks, Financial Institutions
and Insurance Companies |
9607230 |
3.40 |
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FIIs |
877800 |
0.31 |
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Others
|
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Private Corporate Bodies |
9428415 |
3.34 |
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NRIs / OCBs / Foreign Others |
653267 |
0.23 |
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Others |
2500 |
0.00 |
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General Public |
13868842 |
4.91 |
BUSINESS DETAILS
|
Line
of Business : |
Ship Owners and Ship Operators. |
GENERAL INFORMATION
|
Customers
: |
Ř
Hyundai Heavy Industries Company
Limited, South Korea Ř
Cochin Shipyard Limited, India Ř
ABG Shipyard, India |
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No. of
Employees : |
9620 |
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Bankers
: |
˜
State Bank of India, Commercial
Branch, Fort Branch, Mumbai – 400 023, Maharashtra, India ˜
Industrial Development Bank of India ˜
Central Bank of India ˜
Bank of Baroda ˜
State Bank of Patiala ˜
Oriential Bank of Commerce |
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Facilities : |
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Banking Relations : |
Good |
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Auditors
: |
Messrs
FORD, RHODES, PARKS & CO. Chartered
Accountants Messrs
KARNAVAT & CO. Chartered Accountants |
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Associates/Subsidiaries
: |
All Government of
India Undertaking companies |
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Membership: |
Confederation of
Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
450,000,000 |
Equity Shares |
Rs.10/- |
Rs. 4500.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
264612870 |
Equity Shares |
Rs.10/- |
Rs. 2646.100 Millions |
|
17689550 |
Equity Shares |
Rs.10/- |
Rs. 176.900 Millions |
|
|
TOTAL |
|
Rs. 2823.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
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|
1] Share
Capital |
2823.000 |
2823.000 |
2823.000 |
|
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2]
Reserves & Surplus |
40778.200 |
33098.100 |
21147.000 |
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NETWORTH
|
43601.200 |
35921.100 |
23970.000 |
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LOAN
FUNDS |
|
|
|
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1]
Secured Loans |
13744.000 |
14026.500 |
13712.700 |
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2]
Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL
BORROWING
|
13744.000 |
14026.500 |
13712.700 |
|
|
DEFERRED
TAX LIABILITIES |
0.000 |
0.000 |
2954.800 |
|
|
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|
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TOTAL
|
57345.200 |
49947.600 |
40637.500 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
32595.300 |
32358.200 |
29818.100 |
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Capital work-in-progress
|
2372.600 |
1225.000 |
3856.600 |
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INVESTMENT
|
89.600 |
14.500 |
4.500 |
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
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Inventories
|
702.500
|
504.100
|
418.600 |
|
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Sundry Debtors
|
2757.800
|
2075.800
|
2283.800 |
|
|
Cash & Bank Balances
|
20973.300
|
18857.400
|
4831.600 |
|
|
Deposit with Public Financial Institutions
|
1500.000
|
0.000
|
0.000 |
|
|
Other Current Assets
|
742.100
|
767.400
|
493.900 |
|
|
Amounts advanced to joint venture companies |
2187.100
|
1696.300
|
4324.400 |
|
|
Loans & Advances
|
3947.900
|
4292.300
|
4170.800 |
Total Current Assets
|
32810.700 |
28193.300 |
16523.100 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
8983.100
|
9895.500
|
7731.000 |
|
|
Provisions
|
1586.400
|
2112.200
|
2115.800 |
Total Current Liabilities
|
10569.500 |
12007.700 |
9846.800 |
|
Net
Current Assets
|
22241.200 |
16185.600 |
6676.300 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
46.500 |
164.300 |
282.000 |
|
|
|
|
|
|
|
TOTAL
|
57345.200 |
49947.600 |
40637.500 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
36775.400 |
36346.100 |
30123.800 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
11150.300 |
11471.900 |
7135.100 |
Provision for Taxation
|
728.300 |
(2727.200) |
865.200 |
Profit/(Loss) After Tax
|
10422.000 |
14199.100 |
6269.900 |
|
|
|
|
|
Total Expenditure
|
25682.300 |
25145.700 |
22907.200 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 (1st Qtr) |
30.09.2006 (2nd Qtr) |
|
Sales Turnover |
|
7869.700 |
10142.800 |
|
Other Income |
|
138.300 |
834.900 |
|
Total Income |
|
8008.000 |
10977.700 |
|
Total Expenditure |
|
5502.200 |
7195.300 |
|
Operating Profit |
|
2505.800 |
3782.400 |
|
Interest |
|
(311.800) |
(321.700) |
|
Gross Profit |
|
2817.600 |
4104.100 |
|
Depreciation |
|
797.500 |
663.100 |
|
Tax |
|
200.000 |
228.100 |
|
Reported PAT |
|
1820.100 |
3212.900 |
200606 Quarter 1 :--
Notes
Other Income includes Profit on Sale of Ships Rs 101.10
million Other Income Rs 37.20 million Expenditure Includes Staff Cost (ashore
& floating) Rs 880.60 million Bunker Rs 1422.80 million Port dues Rs 555.20
million Cargo Handling Expenses Rs 419.40 million Repairs & Maintenance Rs
761.90 million Charter Hire Rs 604.70 million Provisions Rs 13.50 million Other
Expenditure Rs 844.10 million Tax Includes Provision for Taxation Rs 190.00
million Fringe Benefit Tax Rs 10.00 million Status of Investor Complaints for
the quarter ended June 30, 2006 Complaints Pending at the beginning of the
quarter 02 Complaints Received during the quarter Nil Complaints disposed off
during the quarter 01 Complaints unresolved at the end of the quarter 01 1. The
above results were reviewed by the Audit Committee and taken on record by the
Board of Directors at its meeting held on July 28, 2006. 2. The Statutory
Auditors have carried out a limited review of the results for the quarter ended
June 30, 2006. 3. a. Segment definitions Liner segment includes break-bulk and
container transport Bulk segment Includes tankers (both crude and product), dry
bulk carriers, gas carriers and phosphoric acid carriers. Others include
offshore vessels, passenger vessels and services and ships managed on behalf of
other organizations. Corporate segment includes un allocable segments. Interest
is disclosed as unallocated item. b. All assets / liabilities and revenue items
on vessels wherever possible are allocated on unit cum GRT method i.e. 50%
allocated on the basis of units & balance 50% on the basis of adjusted
(GRT. However, GRT is adjusted to 1/3 or 20000 GRT whichever is more in case of
vessels which are bigger than 20000 GRT. c. The components of capital employed
that cannot be directly identified are allocated on the basis of GRT method. 4.
The Corporation has sold a product tanker, m.t. Basaveshwara during the
quarter. 5. The audited accounts for the year 2005-06 are subject to review by
the Comptroller and Auditor General of India under Section 619(4) of the
Companies Act, 1956. 6. The figures of previous year/period have been regrouped
or rearranged wherever necessary/practicable to conform to current
year/period's presentation.
200609 Quarter 2
Notes
Other Income includes Profit on Sale of Ships Rs 400.40
million Other Income Rs 434.50 million Expenditure Includes Staff Cost (ashore
& floating) Rs 753.30 million Bunker Rs 1676.90 million Port dues Rs 580.60
million Cargo Handling Expenses Rs 484.30 million Repairs & Maintenance Rs
889.80 million Charter Hire Rs 1865.70 million Provisions Rs 18.60 million
Other Expenditure Rs 926.10 million Tax Includes Provision for Taxation Rs
225.00 million Fringe Benefit Tax Rs 3.10 million Status of Investor Complaints
for the quarter ended September 30, 2006 Complaints Pending at the beginning of
the quarter 01 Complaints Received during the quarter 01 Complaints disposed
off during the quarter Nil Complaints unresolved at the end of the quarter 02
1. The above results were reviewed by the Audit Committee and taken on record
by the Board of Directors at its meeting held on October 26, 2006. 2. The
Statutory Auditors have carried out a limited review of the results for the
quarter ended September 30, 2006. 3. a. Segment definitions - Liner segment
includes break-bulk and container transport. Bulk segment includes tankers
(both crude and product), dry bulk carriers, gas carriers and phosphoric acid
carriers. Others include offshore vessels, passenger vessels and services and
ships managed on behalf of other organizations. Un allocable items and interest
income / expenses are disclosed separately. b. All assets / liabilities and
revenue items are allocated vessel wise wherever possible, Assets/liabilities
and revenue items that cannot be allocated vessel wise are allocated on the
basis of unit cum GRT method i.e. 50% allocated on the basis of units &
balance 50% on the basis of adjusted GRT. GRT is adjusted to one third of GRT
or 20000 GRT, whichever is more In case of vessels which are bigger than 20000
GRT. c. The components of capital employed that cannot be directly identified
are allocated on the basis of GRT method. 4. The Corporation has sold a bulk
carrier MV Rani Padmini & breakbulk carrier MV Vishvakarma during the quarter
ended September 30, 2006. 5. Other income for the quarter / half year ended
September 30, 2006 includes a sum of Rs 347.00 million and Rs 363.20 million
respectively representing unclaimed credits and amounts arising from freight
reconciliation of earlier years written back. 6. The figures of previous year /
period have been regrouped or rearranged wherever necessary / practicable to
conform to current year / period's presentation.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.35 |
0.46 |
0.53 |
|
Long Term Debt Equity Ratio |
0.35 |
0.46 |
0.53 |
|
Current Ratio |
2.69 |
1.79 |
1.29 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.53 |
0.54 |
0.52 |
|
Inventory |
58.53 |
73.61 |
63.72 |
|
Debtors |
14.61 |
15.58 |
13.92 |
|
Interest Cover Ratio |
15.00 |
16.02 |
13.70 |
|
Operating Profit Margin (%) |
42.43 |
39.32 |
35.79 |
|
Profit Before Interest and Tax Margin
(%) |
33.83 |
30.57 |
26.24 |
|
Cash Profit Margin (%) |
38.11 |
45.65 |
30.92 |
|
Adjusted Net Profit Margin (%) |
29.52 |
36.90 |
21.38 |
|
Return on Capital Employed (%) |
22.31 |
23.82 |
21.61 |
|
Return on Net Worth (%) |
26.21 |
41.85 |
26.63 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 180.85 |
|
Low |
Rs. 178.00 |
LOCAL AGENCY FURTHER INFORMATION
The company’s fixed
assets of important value include fleet, land, buildings, ownership flats and
residential buildings, furniture, fittings, equipments, ownership containers,
computer software and motor vehicles.
HISTORY
Subject is the largest company in tonnage in
India. The overall fleet position of the company as on 31st March 2005 was 83
ships with 46,19,175 DWT. Out of the total 46,19,175 DWT of the company the
tonnage of crude oil tankers is 29,98,145 DWT; product tankers is 3,97,228 DWT;
Chemical Tankers is 99,174 DWT; Gas Carriers is 35,202 DWT; Bulk carriers is
9,38,256 DWT; Liner ships is 1,27,824 DWT; Offshore Supply vessels is 17912 DWT
and Passenger-cum-Cargo is 5434 DWT.
Subject was incorporated in 1961 with the amalgamation of the Eastern Shipping
Corporation and the Western Shipping Corporation. In 1973, Jayanti Shipping
Company was amalgamated with subject leading to an addition of 16 ships. In
1986, Mogul Lines was amalgamated with subject adding 12 more ships. SCI offers
world-wide container and break-bulk liner services.
Irano-Hind Shipping Company, a joint venture between subject and Islamic
Republic of Iran Shipping Lines was established at Tehran in 1975. Presently
the company together with its subsidiaries owns 6 ships of 0.283 million DWT.
The plans for disinvestment of government stake in the company has hit a
roadblock with the shipping ministry and the department of divestment (DoD)
having a major difference of opinion on the mode of divestment. While the
ministry is keen on offloading part of its stake to a strategic partner and
going in for public floatation later, DoD favours a public issue right away. It
is expected the documents for bidding has reached the final stage and would be
completed shortly.
A consortium comprising of subject, Novolog, Ukraine and United Liner Agencies,
India has successfully bagged a Terminal Management Contract on the basis of
Build-Own-Operate (BOT) scheme offered by MbPT for developing/managing General
Cargo Terminal No 1 at Berth Nos 16 & 17 Indira Docks with a license period
of 20 years.
Subject and Japan-based Mitsui OSK Lines (Mitsui) won the $400 million Petronet
LNG contract to build and operate two LNG carriers. Encouraged by the success
of the mainline container services on the UK/Continent route, subject is
planning to place higher capacity vessels on the route. The company is
currently in the market in search of 2200/2300- TEU capacity vessels for
acquisition.
The construction of LNG Tankers Disha and Indhan is progressing well ahead and
is scheduled to be delivered on December 2003 and 2004 respectively. SCI made
an agreement with International banks to the extent of USD 283 million on
project finance basis. The Dahej Terminal project is progressing well and is
expected to be completed by December 2003. Both the LNG tankers for the
project, Disha and Raahi were delivered and have commenced commercial
operations and have transported a total of about 3.4 million tonnes of LNG from
Qatar to Dahej.
During the end of 2004-05 the company has placed an order for a crude oil
tanker with a capacity of 316,000 DWT with Hyundai Heavy Industries Co Ltd South
Korea.
OPPORTUNITIES & THREATS
Tanker
Increase in import of crude oil and the paradigm shift in
parcel size for imported crude oil has provided a new market for VLCCs;
however, considering the port limitations, ullage constraints and throughput
requirements, the smaller vessels of LRII and LRI sizes would continue to be
required. The increase in refinery capacity is expected to raise the domestic
production considerably. Though the demand for Petroleum Product is expected to
increase, it is not expected to catch up with supply thereby creating 'supply
overhang1 situation for products. Thus, after meeting the domestic demand,
excess middle distillates like SKO / HSD / LDO / ATF would be required to be
exported. Besides catering to the requirements of Indian Oil Industry, your
Company also utilized some of its tonnage for the cross-trade to take advantage
of the buoyant tanker market. Stringent age requirement and stricter
implementation of regulations at foreign ports severely reduced the flexibility
of deployment of SCI's aging tankers. In terms of deadweight, about 33% of
subject's tanker tonnage is more than 19 years old.
Considerable addition of new built tanker tonnage is likely
to increase the tonnage supply thereby pushing the freight rates to lower
levels.
Dry Bulk
The increased import requirement of coal would lead to the
requirement of larger size vessels for both export of iron ore and import of
coal. Currently, about 77% of subject's dry bulk fleet is more than 15 years
old of which about 70% belong to handymax size. The marketability of these
handymax vessels has come down due to their age as most of the reputed
charterers prefer to take vessels of 15 years or younger. Moreover, due to age,
the cost of maintenance has gone up considerably and the vessels are becoming
more and more expensive to operate. Further, as all new acquisitions of
Handymax size are mainly in the DWT range of 53000 or more with most economic
fuel oil consumption, the existing SCI's Handymax fleet with DWT about 46000 mt.
would face tough competition.
OUTLOOK
As per market reports, global containerized trade is
projected to grow in 2005 by 10.7%, which although lower than 14.2% growth in
2004, is still very substantial considering the already high base level as a
result of phenomenal growth rates achieved during the preceding three years
viz. 12.2% (2002), 13% (2003) and 14.2% (2004). Chinese export growth is
likewise expected to continue, albeit at a slower pace of 20%, down from 29% in
2004. However, a significant slowdown in trade growth is expected in the second
half of 2005 owing to high oil prices and increasing interest rates, which
could depress the purchasing power of the US and European consumers. In the
following year (2006), global containerized trade growth is projected to dip
still further to around 8.2%. As regards the fleet (supply side) growth, the
next couple of years reportedly are set to experience a massive surge in
deliveries. Compared to the previous 4 year average of 0.62 million TEU per
year as per order book position, the new building cellular deliveries in 2005
are estimated to increase drastically by 45% to 0.9 million TEU followed by
another 1.36 million in 2006! Deliveries in 2007 are also set to match 2006
levels as some shipyards still have a few slots available, followed by a huge
build up of 2008 deliveries, which is already in progress as a result of a wave
of contracting activity during early 2005. Thus, the world container-capable
fleet growth (including non-cellular ships) is estimated to accelerate to 12%
by end-2005 and 15% by end-2006. In fact, based on the present order book, 200
Mega-ships are already slated to join the fleet by end-2008; and these vessels
alone account for nearly 50% of the total capacity presently available in the
two premier containership lanes viz. Transpacific east bound and Europe-Asia
west bound! In view of these developments and projections based on market
reports, the charter rates as well as box rates are likely to register modest
gains through the summer of 2005, thereafter setting on a downward trend.
However, for
the whole year, charter rates are projected to average 25%
higher than in the previous year average, subsequently declining to 2004 levels
m 2006, but still well above historical averages. Then, as the new building
deliveries continue unabated, market correction is expected to accelerate after
2006, softening the rates considerably. With the world wide trend of increasing
containerization witnessed over the last decade and more, the growth in global
break bulk trade has been marginal during this period; and the future growth in
break bulk demand is expected to follow a similar trend. As regards India's
break bulk trade, the import of steel parcels from the UK Continent into India
has been growing, and the demand is expected to continue at the prevailing
level for the next couple of years. In the Coastal & Passenger Services
sector, as mentioned earlier, your Company has already taken over technical
management of 13 additional inter - Island Passenger-cum-Cargo vessels of the
Andaman & Nicobar (A&N) Administration during the year under review.
SCI will also take over management of another Passenger-cum- Cargo vessel (400
Passengers & 100 M/T cargo capacity) of A&N Administration during the
year 2005 - 2006. This will further strengthen your Company's commitment to
operate passenger vessels besides earning due remuneration for your Company.
This will also enhance the broader social impact especially on the people of
A&N Islands.
News and Press Releases
The Shipping Corporation of India Limited (SCI)
accepted delivery of a Very Large Crude oil Carrier, m.t.Desh Vaibhav
The Shipping Corporation of India Limited (SCI)
accepted delivery of a Very Large Crude oil Carrier, m.t.Desh Vaibhav, today,
17.08.2005.
The vessel was earlier named on 11.08.2005 by
Mrs. Kalpana Srivastava at a colorful ceremony held at the shipyard, presided
over by Mr. P. K. Srivastava, CMD, SCI.
The vessel is the second of
the series of two VLCCs which were being constructed by Hyundai Heavy
Industries, South Korea for SCI. Orders for these vessels were signed during
June 2003. The first vessel was delivered to SCI during January, 2005 and it
has been giving excellent service to our company and our country. In fact these
sister ships are the largest vessels on the Indian Register.
The vessel has a Gross Tonnage of 161,202 tones
and deadweight of 316,409 tones. Major dimensions of the vessel are 333 m
length, 60 m beam and 22.5 m draught. The vessel has been classed with DNV and
IRS and has been built to comply with the latest and most stringent
international regulations including the U.S. Coast Guard rules and OPA 90.
Induction of the vessel in the SCI fleet is
expected to strengthen the company’s position in energy transportation. The
company has a fleet of 83 vessels at present and acquisition of the vessel is
in line with subject’s strategy of maintaining a modern and young fleet of
vessels.
MSV SAMUDRA SURAKSHA
MSV Samudra Suraksha, a Multi
Support Vessel having Dynamic Positioning System, owned by ONGC and operated by
The Shipping Corporation of India Ltd. under O&M Contract
was deployed by ONGC for carrying out Inspection, Maintenance and Repair
(IMR) activities in Mumbai High Offshore Oil fields in west coast of India.
On 27.07.2005, while the vessel was performing under water saturation
diving job at N-7 platform in Mumbai High North field, a house
keeper in catering department, who accidentally severed two of
his fingers while working in galley had to be sent back for medical assistance.
The Master in consultation with ONGC Representative onboard and BHN
authorities, decided to take the vessel to BHN and transfer the injured person
to BHN platform for necessary medical treatment.
On reaching BHN Complex at around 1600 hrs, it was observed that
BHN had already lowered its Personnel Basket to pick up the injured person. MSV
Samudra Suraksha took position on south
face of BHN Platform for Personnel Transfer by positioning
under the Platform Crane. During personnel transfer, while the vessel was being
maneuvered, strong winds and swells pushed her towards the platform and her
stbd side including helideck made contact with the platform structure. It is
suspected that one of the gas pipe line / riser might have fractured due to the
impact resulting in leakage of natural gas in to the atmosphere which
subsequently caught fire both on the platform and the vessel.
As the situation was uncontrollable, the Master decided to abandon the ship.
Portside lifeboats and various life rafts were lowered into the water and
all ship’s personnel, except 6 nos. divers who were
inside the saturation chambers, disembarked. The Master while coming down last
from the vessel found the Crane
Operator suspended from the ladder with his leg entangled with a rope. The
entangled rope was released by the Captain, but the crane operator Mr. P.M.
Kalambe had breathed his last by then. The Master then swam with the body of
Mr. Kalambe to a nearby life-raft.
Subsequently out of total 84 personnel onboard SAMUDRA SURAKSHA, 77 were
rescued alive alongwith 1 dead body (Mr. P.M. Kalambe) by various OSVs.
Remaining six Divers in Saturation Chambers of SAMUDRA SURAKSHA could not be
transferred to safety due to damage of hyperbaric rescue life boat. DSV SAMUDRA
PRABHA was diverted to drifting and burning SAMUDRA SURAKSHA and heavy smoke
and flame was observed on stbd side of SAMUDRA SURAKSHA.
The Survivors from SAMUDRA SURAKSHA including body of late Mr. Kalambe
started arriving at 12 VD from 28.07.2005 onwards and they were received by
Senior ONGC and SCI officials. Those requiring medical attention were
hospitalized and the others were accommodated in hotels. The body of late Mr.
P.M. Kalambe was taken to J.J. Hospital for postmortem and then handed over to
his relatives.
A contingency watch was set up immediately at SCI Head Office round the clock
from 27.07.2005 onwards to render all necessary assistance for saving the
life of all personnel. Samudra Prabha`s presence was utilized for fire fighting
and rendering assistance towards rescue of the six divers who were
in saturation chambers of MSV Samudra Suraksha. These
divers were brought to surface level following emergency procedures duly
approved by a qualified Hyperbaric doctor at 0825 hrs on 29.07.2005 and in his
presence were shifted to DSV Samudra Prabha and were blown down to the required
depth in the saturation chambers of DSV Samudra Prabha. The Divers
surfaced from the chambers of Prabha at 0800 hrs on 31.07.2005 and after observing
them for a day, they are now ready to return to base and are continuing on
SAMUDRA PRABHA awaiting helicopter for their return.
Once the Saturation Divers were out of MSV Samudra Suraksha on 29.07.2005,
towing of MSV Samudra Suraksha to sheltered waters was commenced on the same
day from 2212 hours with SINDHU-5 as towing vessel. The list of MSV SAMUDRA
SURAKSHA was reported to be approximately 4-5 degree towards stbd. On 31.7.2005
due to adverse weather, SINDHU 5 propeller got fouled and had to be replaced
with towing vessel NEEL KAMAL.
Professional salvage companies were contacted on 31.07.2005
requesting for rendering possible assistance in towing MSV SAMUDRA SURAKSHA to
sheltered water in MbPT. However, they could not offer any
assistance immediately and indicated that they will need some time to mobilize
their resources. Also they wanted the bad weather phase to get over.
Thus, no possible assistance could be obtained from professional salvage
companies.
Meanwhile, subject had arranged repair
workshop with portable generator and portable pump set for correcting the
list of the vessel and entering the accommodation to ensure
there is no fire which were the prerequisites of MBPT
for the vessel to come inside the port. Accordingly, 12 workshop
personnel and 3 SCI personnel had boarded M.V. SAMUDRIKA 1 with requisite
materials on 31.07.2005 at 5 VD at 1700 hrs. They reached the location of
SAMUDRA SURAKSHA by 2030 hrs. on 31.07.2005 and they were awaiting reduction of
severity of weather for boarding SAMUDRA SURAKSHA. Unfortunately, due
to the fury of weather they could not board the vessel.
On 01.08.2005 senior officers of ONGC
and SCI requested Mumbai Port Trust officials to
grant a sheltered water space for SAMUDRA SURAKSHA.
Unfortunately, the weather prevailing at that time was very bad and Mumbai Port
had hoisted storm signal No.3 and Mumbai Port officials were of the view that
NEEL KAMAL with a 100 mtrs. Long tow line followed by 102 mtr. Long SAMUDRA
SURAKSHA will be better off out at sea than in enclosed space as
NEEL KAMAL will have better maneuverability.
Accordingly, it was decided to introduce second Towing vessel which will take
the tow line from the other side i.e. from port quarter which will reduce the
strain on the towing rope of NEEL KAMAL. However, although M.V. FEROZE GANDHI
was available at location, the divers of SAMUDRA PRABHA could not fix the
towline in such adverse weather and were waiting for severity of weather to
reduce to put the second towing line on FEROZE GANDHI. Harbour Master MBPT
talked to the Master of NEEL KAMAL and SAMUDRA PRABHA from VTS in MBPT and it
was established that the list of SAMUDRA SURAKSHA has increased to
approximately 12 degree to stbd side. It was agreed in consultation with MBPT
officials that once two towing lines are put on two towing vessels and once the
weather subsides the team can come inside and anchor at V2 anchorage.
Accordingly, NEEL KAMAL was cruising at a very slow speed so as to ensure
minimum strain on the towing rope but unfortunately due to the fury of the
weather the vessel listed further towards Stbd side and at 0052 hrs. on
02.08.2005 the vessel capsized and sank in position 18 Degree 59.8 min N, 072
Degree 36.86 Min. East, about 13.1 nautical miles north-west of Prongs Reef
Lighthouse in water depth about 22.5 metres
S. Hajara takes over as CMD, SCI
The Goverment of India vide letter No.
SS-11012/2/2004-SY II dated 14th November, 2005 has conveyed its approval to
the appointment of Shri S. Hajara, Director (Personnel & Administration),
SCI as the Chairman & Managing Director of the Shipping Corporation of
India Ltd., for a period of five years from the date of assumption of charge of
the post i.e., from 01.09.2005 or till the date of his superannuation or until
further order, whichever event occurs at the earliest.
Mr. Hajara joined SCI as Junior Officer in the
year 1973 after obtaining Post Graduate Diploma in Management from the Indian
Institute of Management, Kolkata. In SCI, he worked in various positions and
rose to become General Manager (Bulk & Tanker Division) in 1997. He was
elevated to the position of Director (Personnel and Administration) on 1st
February, 2001.
The Shipping Corporation of India received the
Golden Peacock Award for Excellence in Corporate Governance for 2004
17th November 2004
The Shipping Corporation of India (SCI) received this prestigious award, the
Golden Peacock Award for Excellence in Corporate Governance for 2004 instituted
by the Institute of Directors, a non-profit body, at the 1st National
Conference on Corporate Responsibility, organized by the Centre For Social
Responsibility.
The Shipping Corporation of India is the country's largest and most diversified
shipping company presently owning a fleet of 83 vessels of around 4.4 million
DWT (2.6 million GT) which operate in practically all areas of shipping
business, catering to India's EXIM trade as well as domestic trade (including
movement of passengers between the mainland and the Andaman & Nicobar and
the Lakshadweep groups of inslands) by offering efficient, economical and
reliable shipping services. In addition to its owned fleet, SCI manages 40
vessels of around 0.6 million DWT (1.15 million GT) which are owned by various
Government organizations / departments and the ONGC. Through its owned and
managed fleets, the SCI provides shipping services, following ethical shipping
practices and this has ensured a reputation for the SCI as an ethical
organization.
Transparency, appropriate disclosure, fairness and a mechanism for independent
supervision are the principal underlying features of good Corporate Governance,
and the SCI has steadfastly followed this philosophy over the years. The SCI
has always endeavored to keep the interests of the stakeholders uppermost, while
meeting the challenges of the competitive global environment. And, the SCI
continually endeavors to further refine the existing systems to place
stakeholders' interest as its foremost concern in its pursuit of excellence.
SCI's mission, inter alia, includes serving India's overseas and coastal
seaborne trades as its primary flag carrier and be an important player in
global maritime transportation and in other fields like Offshore and marine
transport infrastructure. SCI has a safety and environment protection policy,
and fully complies with the requirements as per the International Safety
Management Code of the IMO. It thus remains committed to environmental
protection as per International Convention for prevention of Pollution from
ships and has taken various steps to conserve energy / minimize its loss at
sea. Moreover, a Quality Management System is implemented in the SCI's Maritime
Training Institute and approved for ISO 9001:
2000 certification.
SCI protects the interests of the various stakeholders, which mainly include
its Share holders, Government, Employees & their representative for a, Tax
authorities, Customers and Suppliers, etc. It regularly conveys all relevant
information through various mechanisms such as periodical announcements of financial
information, notification and advertisements in trade journals. For example,
unaudited financial results of the company are published in news papers every
Quarter and results, official news and latest developments in the company etc.,
are displayed on the SCI's website, www.shipindia.com. There is a Share holders
/ Investors Grievance Committee which replies / sorts out the grievances within
7 days as against the stipulated 15 days time. SCI also brings out the in-house
publication "SCI Sandesh", which covers the various developments for
the information of its employees.
The SCI has not lost any man-days on account of strikes, lock-outs etc., and
absentee rates are negligible.
Corporate Governance is practiced in the manner prescribed by the Companies Act
and listing rules in order to ensure timely and accurate disclosures of
performance, ownership and governance of the Company.
The SCI Board assumes overall responsibility for developing strategic vision,
planning process, identifying / managing risk, assessing all management etc.
For achieving this, the Board functions through various committees or
sub-committees of the Board / Management, who report the progress on specific
issues on a periodical basis.
As regards investments of minority share holders, though the Government holds
more than 80% voting rights, voting on any resolution takes place in accordance
with the guidance of the Administrative Ministry. There are adequate checks and
balances in the system which ensures that while voting, due care is taken of
the interests of small share holders.
Apart from the above mentioned award, the National Maritime Day Celebrations
Committee awarded Certificates of Excellence to the SCI for 2002 and 2003 as
"The Most Compassionate Employer of Indian Seafarers" and "The
Safest Indian Shipping Company".
SCI has identified carriage of LNG as one of the prime thrust and growth areas
and accordingly, it has already established its presence in the Petronet LNG
project for import of LNG from Qatar to India through joint venture SPVs in
consortium with other reputed key players in this sunrise shipping segment. SCI
remains committed to in its endeavour to be the flag bearer of the nation and
has embarked upon plans for expansion, modernisation and diversification to
serve Indian trade and industry. It also continues to explore possibilities of
setting up joint ventures and alliances in its existing lines of business so as
to further consolidate its position in the maritime world.
The company has joint venture with the
following companies :
Irano Hind Shipping Company
It is a joint venture
between the company and Islamic of Iran Shipping Lines (IRSIL) was established
at Tehran, in March, 1975. Presently,
the company owns a fleet of 8 vessels aggregating 0.167 million DWT.
Greenfield Shipping Company
The company has
diversified into the business of LNG transportation and has signed an agreement
with Mitsui OSK Lines (MOL), Japan and AFCL, a subsidiary of the USA based
energy major Enron, to float a joint venture to transport LNG for Enron's
Dabhol Power Project in Maharashtra.
The JVC, Greenfield Holding Company, is registered in Cayman Islands in
which the company has a 20% stake. The
company, in equity participation with MOL and Enron, will be owning the very
first LNG tanker "S.S.Lakshmi" (137000 CBM) to come to the Indian
shores, which will commence carrying about 2 million tonnes of LNG per annum by
November, 2001 to Dabhol from Abu Dhabi and Oman for the Dabhol Power Company,
who have already concluded a 20 years time charter with the SCI-MOL-Enron
combine.
Petronet LNG Project
The company in
consortium with the three Japanese lines viz. Mitsui OSK Lines, NYK and K Line
have won the bid for the transportation of 5 million metric tones per annum of
LNG from Qatar's Ras Laffan LNG Company, for Petro net LNG's (PLL) Dahej
project starting January, 2004. The
company and MOL have a 34% stake each in the consortium with the remaining 32%
being shared by NYK and K Line. Two
special purpose Joint Venture Company to construct, own and operate the LNG
ships would be shortly set up at Malta. A time charter agreement for two LNG
ships for a period of about 24 years each has been formally executed between
PLL and the consortium. The company is
also in the running to bid for more LNG shipping contracts in the future.
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
records 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. 44.17 |
|
UK Pound |
1 |
Rs. 86.66 |
|
Euro |
1 |
Rs. 57.25 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP
CAPITAL |
1~10 |
8 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
74 |
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/normal. |
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 |