MIRA
INFORM REPORT
|
Report Date : |
21.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
THE SHIPPING
CORPORATION OF INDIA LIMITED |
|
|
|
|
Registered
Office : |
Shipping House, 245, Madame Cama Road, Mumbai –
400 021, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2007 |
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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 |
|
|
|
|
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
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 204000000 |
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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 |
|
Tel. No.: |
91-22-22026666 / 22023463 |
|
Fax No.: |
91-22-22026905 / 22022933 |
|
E-Mail : |
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|
Website : |
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Corporate
Office : |
“Chandralok”, 36 Janpath, New Delhi – 110 001,
India |
|
Tel. No.: |
91-11-23322523/23322604/23322625 |
|
Fax No.: |
91-11-23713755 |
|
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. S. Hajara |
|
Designation : |
Chairman & Managing Director |
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|
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|
Name : |
Mr. C. Balakrishnan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Rajeev Gupta |
|
Designation : |
Director |
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|
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|
Name : |
Dr. Bakul H Dholakia |
|
Designation : |
Director |
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Date of Birth/Age : |
15.07.1947 |
|
Qualification : |
- Masters' Degree in Economics - Ph.D in Economics |
|
Experience : |
Areas of specialization include Business Economics,
Economic Policy, Corporate Strategy
and Public Enterprise Management |
|
Date of Appointment : |
28.07.2007 |
|
Other Directorships : |
* Mahanagar Gas Limited * Reliance Natural Resources Limited * Ashima Limited * Nachmo Knitex Limited * Oil & Natural Gas Corporation Limited * Torrent Power Limited *
Hexaware Technologies Limited |
|
|
|
|
Name : |
Mr. A D Fernando |
|
Designation : |
Director |
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Date of Birth/Age : |
21.03.1955 |
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Qualification : |
- BE (Mech.) - Diploma in Global Trade from the City University of New York, USA |
|
Experience : |
Wide knowledge about global trade, export and import of Marine and
Agro products, Marine Biotech,
Shipping & Port Management, Thermal Plant operations and Governmental
Aquarian policy planning (State planning commission) |
|
Date of Appointment : |
28.07.2007 |
|
Other Directorships : |
Victoria Marine and Agro Exports Limited |
|
|
|
|
Name : |
Mr. U.C. Grover |
|
Designation : |
Director |
|
Date of Birth/Age : |
31.08.1950 |
|
Qualification : |
- Graduated as Marine Engr.(DMET, Kolkata). - MOT 1st Class. |
|
Experience : |
Vast experience and knowledge in ship management. Marketing, liner
conference/ bilateral matters. Container operations and maritime training |
|
Date of Appointment : |
01.04.2006 |
|
|
|
|
Name : |
Mr. Kailash Gupta |
|
Designation : |
Director |
|
Date of Birth/Age : |
25.12.1952 |
|
Qualification : |
- B.A.(Hons.) - Post Graduate Diploma in Personnel Management from XLRI,
Jamshedpur LL.B. |
|
Experience : |
Vast experience in light engineering, super thermal & hydroelectric
power projects/power utility, hospitality services, and mines & mineral
sector in human resources management/ development, industrial relations,
administrative support services, legal affairs, corporate communications
& media affairs, and related functions |
|
Date of Appointment : |
20.07.2006 |
|
|
|
|
Name : |
Mr. A K Mago |
|
Designation : |
Director |
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Date of Birth/Age : |
27.09.1944 |
|
Qualification : |
- M.Sc. (Physics) - M.Phil.(Social Sciences) - Diploma in Management, Public Administration, French &
Certificate in International Law and
Diplomacy |
|
Experience : |
Possesses valuable administrative and management expertise / skills for
working at top levels in organizations and is well conversant with
matters relating to policy/planning
and implementation in power, port and urban
infrastructure sectors |
|
Date of Appointment : |
28.07.2007 |
|
Other Directorships : |
Yes Bank |
|
|
|
|
Name : |
Mr. B.K. Mandal |
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Designation : |
Director |
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Date of Birth/Age : |
09.05.1954 |
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Qualification : |
- B.Com (Hons) - Post Graduate Diploma in Management (MBA) from IIM, Ahmedabad - FICWA |
|
Experience : |
Vast experience in Finance, Accounting and General Management area |
|
Date of Appointment : |
11.11.2005 |
|
|
|
|
Name : |
Mr. Naseer Munjee |
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Designation : |
Director |
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Date of Birth/Age : |
18.11.1952 |
|
Qualification : |
- Bachelors Degree from University of Chicago - Master's degree from the London School of Economics, UK |
|
Experience : |
Vast experience in housing finances and is deeply
interested in rural development. urban issues, specially the development of modem
cities and humanitarian causes |
|
Date of Appointment : |
13.08.2007 |
|
Other Directorships : |
* ABB Limited * Apollo Health Street Limited * Bharati AXA Life Insurance Co. Limited * Ciba Specialty Chemicals (India) Limited * Cummins India Limited * Gujarat Ambuja Cements Limited * Mahindra & Mahindra Financial Services Limited * Tata Chemicals Limited * Unichem Laboratories Limited * Voltas Limited * Development Credit Bank * HDFC Limited * Indian Railway Finance Corporation Limited *
ITD Cementation Limited |
|
|
|
|
Name : |
Mr. Keshav Saran |
|
Designation : |
Director |
|
Date of Birth/Age : |
04.07.1942 |
|
Qualification : |
- B.Sc. B.Sc.(Engg.)(Hons.) - Post Graduate diploma (Industrial Management) - MBA - LL.B. |
|
Experience : |
Vast experience in Public Sector Undertakings(PSUs)
management, project management. Commercial management. Systems and procedural
aspects in PSUs. |
|
Date of Appointment : |
28.07.2007 |
|
|
|
|
Name : |
Mr. J N L Srivastava |
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Designation : |
Director |
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Date of Birth/Age : |
01.01.1943 |
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Qualification : |
M.A. |
|
Experience : |
Vast experience in Administration and Public Management of
Public Enterprises in Agro-processing and other industrial sectors and
establishment of industrial infrastructure. |
|
Date of Appointment : |
28.07.2007 |
|
|
|
|
Name : |
Mr. U Sundararajan |
|
Designation : |
Director |
|
Date of Birth/Age : |
14.06.1942 |
|
Qualification : |
Cost Accountant |
|
Experience : |
Vast experience in financial and general management areas |
|
Date of Appointment : |
28.07.2007 |
|
Other Directorships : |
* Gujarat State
Petronet Limited * Larsen &
Toubro Limited * Thirumalai
Chemicals Limited * IDFC Trustee
Company Limtied |
KEY EXECUTIVES
|
Name : |
Mr. Dipankar Haldar |
|
Designation : |
Company Secretary & G M (Legal Affairs)
|
SHAREHOLDING
PATTERN
|
Names of Shareholders |
|
Percentage of
Holding |
|
Indian Public |
|
3.17 |
|
Government of India |
|
80.12 |
|
Private Corporate Bodies |
|
0.89 |
|
Foreign Institutional Investors / NRI’s / OCB’s |
|
3.75 |
|
Life Insurance Corporation of India |
|
7.55 |
|
Mutual Funds/ Banks/ Financial Institutions/ Insurance Companies |
|
3.75 |
|
Others |
|
0.77 |
|
Total |
|
99.23 |
BUSINESS DETAILS
|
Line of Business : |
Ship Owners and Ship Operators. |
GENERAL
INFORMATION
|
Customers : |
* Hyundai Heavy Industries Company Limited, South Korea * Cochin Shipyard Limited, India *
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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|
|
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Auditors : |
|
|
Name : |
* Khandelwal Jain
and Company
Chartered Accountants * S. Bhandari and
Company
Chartered Accountants |
|
|
|
|
Memberships : |
Confederation of Indian Industry |
|
|
|
|
Associates/Subsidiaries : |
All Government of India Undertaking companies |
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 |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2823.000 |
2823.000 |
2823.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
48174.300 |
40778.200 |
33098.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
50997.300 |
43601.200 |
35921.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12447.100 |
13744.000 |
14026.500 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
12447.100 |
13744.000 |
14026.500 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
63444.400 |
57345.200 |
49947.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
29611.500 |
32595.300 |
32358.200 |
|
|
Capital work-in-progress |
7625.500 |
2372.600 |
1225.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
240.000 |
89.600 |
14.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
738.500
|
702.500
|
504.100
|
|
|
Sundry Debtors |
3211.700
|
2757.800
|
2075.800
|
|
|
Cash & Bank Balances |
26246.900
|
20973.300
|
18857.400
|
|
|
Deposit with Public Financial Institutions
|
0.000
|
1500.000
|
0.000
|
|
|
Other Current Assets |
1063.900
|
742.100
|
767.400
|
|
|
Amounts advanced to joint venture companies |
3140.500
|
2187.100
|
1696.300
|
|
|
Loans & Advances |
5405.600
|
3947.900
|
4292.300
|
|
Total
Current Assets |
39807.100
|
32810.700 |
28193.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
11117.200
|
8983.100
|
9895.500
|
|
|
Provisions |
2722.500
|
1586.400
|
2112.200
|
|
Total
Current Liabilities |
13839.700
|
10569.500
|
12007.700
|
|
|
Net Current Assets |
25967.400
|
22241.200
|
16185.600
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
46.500 |
164.300 |
|
|
|
|
|
|
|
|
TOTAL |
63444.400 |
57345.200 |
49947.600 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
40059.100 |
37152.400 |
36346.100 |
|
|
Other Income |
216.400 |
169.500 |
0.000 |
|
|
Total Income |
40275.500 |
37321.900 |
36346.100 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
11100.300 |
11150.300 |
11471.900 |
|
|
Provision for Taxation |
954.500 |
728.300 |
(2727.200) |
|
|
Profit/(Loss) After Tax |
10145.800 |
10422.000 |
14199.100 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
0.000 |
0.000 |
|
|
|
Manufacturing Expenses |
25677.000 |
21193.700 |
|
|
|
Administrative Expenses |
1378.600 |
1343.500 |
|
|
|
Raw Material Consumed |
0.000 |
0.000 |
|
|
|
Purchases made for re-sale |
0.000 |
0.000 |
|
|
|
Consumption of stores and spares parts |
0.000 |
0.000 |
|
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
|
|
|
Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
25145.700 |
|
|
Managerial Remuneration |
0.000 |
0.000 |
|
|
|
Payment to Auditors |
0.000 |
0.000 |
|
|
|
Interest |
801.300 |
790.600 |
|
|
|
Insurance Expenses |
0.000 |
0.000 |
|
|
|
Power & Fuel |
0.000 |
0.000 |
|
|
|
Depreciation & Amortization |
3030.800 |
3034.900 |
|
|
|
Other Expenditure |
115.600 |
110.200 |
|
|
Total Expenditure |
31003.300 |
26472.900 |
25145.700 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
8858.600 |
9287.200 |
9152.700 |
|
Other Income |
722.300 |
170.800 |
658.500 |
|
Total Income |
9580.900 |
9458.000 |
9811.200 |
|
Total Expenditure |
6403.300 |
6417.400 |
6871.700 |
|
Operating Profit |
3177.600 |
3040.600 |
2939.500 |
|
Interest |
169.300 |
161.800 |
154.600 |
|
Gross Profit |
3008.300 |
2878.800 |
2784.900 |
|
Depreciation |
685.800 |
750.800 |
938.400 |
|
Tax |
261.300 |
304.900 |
78.700 |
|
Reported PAT |
2061.200 |
1823.100 |
1767.800 |
|
|
|
|
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
25.19
|
27.92 |
39.06 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
27.56
|
29.87 |
31.56 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.36
|
16.43 |
18.56 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.25 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.51
|
1.55 |
1.72 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.87
|
3.10 |
2.34 |
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.
Apporopriations:
The working results of Company for the year 2006-2007 after considering prior
period adjustments show a profit of Rs.10145.800 millions. An amount of Rs.2250
millions has been transferred to Tonnage Tax Reserve u/s 115VT of Income Tax
Act. After adding a sum of Rs.4877 millions (being balance profit and loss account
brought forward from the previous year) and after considering Rs.2399.600
millions (being interim dividend @ 85% paid) and Rs.336.500 millions (being the
amount of tax on interim dividend), the amount available for disposal works out
to Rs.10036.700 millions. Directors propose to make the following
appropriations from this amount:
|
General Reserve |
Rs. 4000.000
millions |
|
Capital Reserve |
Rs. 222.700
millions |
|
Staff Welfare Fund |
Rs. 6.000
millions |
|
Total |
Rs.
4228.700 millions |
Fleet Position
during the Year:
During the year four vessels were disposed of and there was no addition to the
tonnage during the year, Thus, the overall fleet position, which was 83 ships at
the beginning of the year, closed at 79 ships at the end of the year as shown
in the following table:
FLEET PROFILE DURING THE YEAR
|
Particulars |
As on 01.04.2006 |
Additions |
Deletions |
As on 31.03.2007 |
||||
|
|
No. |
DWT |
No. |
DWT |
No. |
DWT |
No. |
DWT |
|
Crude Oil
Tankers |
30 |
3313946 |
-- |
-- |
-- |
-- |
30 |
3313876 |
|
Product Tankers |
10 |
397230 |
-- |
-- |
1 |
2990 |
9 |
367240 |
|
Chemical Tankers
|
3 |
99174 |
-- |
-- |
-- |
-- |
3 |
99174 |
|
Gas Carriers |
2 |
35202 |
-- |
-- |
-- |
-- |
2 |
35202 |
|
Bulk Carriers |
22 |
938256 |
-- |
-- |
2 |
103256 |
20 |
834955 |
|
Liner Ships |
4 |
107250 |
-- |
-- |
1 |
20435 |
3 |
86815 |
|
Offshore Supply
Vsls |
10 |
17912 |
-- |
-- |
-- |
-- |
10 |
17904 |
|
Passenger-cum-Cargo
Vessels |
2 |
5303 |
-- |
-- |
-- |
-- |
2 |
5303 |
|
Total |
83 |
4914273 |
-- |
-- |
4 |
153681 |
79 |
4760469 |
VESSELS DISPOSED
OF DURING THE YEAR
|
Vessel Name |
Type |
Yard Built |
DWT |
|
m.t. Basaveshwara |
Product Tanker |
1982 |
29990 |
|
m.t. Rani Padmini |
Bulk Carrier |
1981 |
76384 |
|
m.v. Vishvakarma |
Liner |
1983 |
20435 |
|
m.v. Lok Pratima |
Bulk Carrier |
1989 |
26872 |
VESSELS ON ORDER
AT THE END OF THE YEAR
|
Type |
No. |
Shipyard |
Total DWT |
|
Crude Oil Tankers |
2 |
Daewoo Shipbuilding and Marine Engineering
Company Limited, South Korea |
638000 |
|
LR-I Product Tankers |
6 |
STX Shipbuilding Company Limited, South
Korea |
434000 |
|
Cellular Container vessels of 4400 TEUs each
|
2 |
Hyundai Samho Heavy Industries, South Korea |
116000 |
|
MR Product Tankers |
2 |
Jinling Shipyard, China |
94000 |
INDUSTRY STRUCTURE
AND DEVELOPMENT:
World Scenario:
The global economy strengthened in 2006 with its GDP growing by 4.7%, compared
to 4.2% in the previous year. The major drivers of the growth were China and
India. The Chinese economy grew by 10.5%, followed by 'Developing Asia'
(excluding China) at 6% with the industrialized economies experiencing moderate
to slow growth. Several natural resources based economies viz. Latin America,
Africa and Russia also witnessed accelerated growth. Global trade accounted for
over 30% of GDP in 2006.
Indian Scenario:
As the world's second-most populous country and the fourth largest economy in terms
of Purchasing Power Parity, India was amongst the fastest growing economies in
the 'BRIC - M' (Brazil, Russia, India, China & Mexico) group.
India's GDP grew even faster in 2006-07 at 9.2% as against 8.1 % in the previous
year and its total foreign exchange reserves have crossed the US$ 200 Billion
mark. India's share of world trade has also increased from its earlier level to
touch the 1% mark. In terms of trade volume, the cargo traffic handled by major
Indian Ports during the 11 months period in 2006-07 was around 418 Million
Tonnes, representing an increase of 9.3% compared to the corresponding period
in 2005-06
OPPORTUNITIES & THREAT:
Global Economy:
After a period of rapid economic growth over four consecutive years, global GDP
growth may experience a mild deceleration with GDP growth averaging just over
4% in 2007 and 2008. Even so, this growth is healthy by historical standards,
which on an already high base, augurs well for trade & shipping industry. China
and the developing economies are expected to grow at an impressive pace;
China's GDP growth is expected to average a little higher than 10% p.a. in the
next couple of years with the continuing boom in its domestic demand in the
run-up to the 2008 Beijing Olympics. The 'Rest of Asia (excluding Japan &
China)' with an annual growth of 6% up to the year 2008, also holds good growth
potential.
The recent indicators portend a somewhat sluggish growth in the economies of
North America, OECD Europe and Japan, which are likely to experience less than
2.5% GDP growth each in 2007 and adversely impact shipping demand. Also, South
Korea and Vietnam have been witnessing subdued growth in recent months, and the
extent of their growth remains to be seen.
Global Trade:
The Trade projections for 2007 indicate a reasonable growth levels over the
previous year viz. around 2.6% for global Oil imports (i.e. Crude oil and
Products), 6.3% for Dry Bulk imports and 9.1% for Container import trade.
Indian Economy & Trade:
The Indian economy may, yet, continue its trend of rapid growth with the
expectations of achieving double-digit GDP growth in the coming years. The
Infrastructure Investment in the country, projected at US$ 320 Billion during
the 11th Plan presents considerable growth prospects for industry & trade
with an imperative to focus on accelerated development of Shipping, Ports &
Logistics Infrastructure. Indicative of the positive / favourable trends, the
Annual Foreign Trade Policy for the Year 2007-08 envisages an ambitious export
target of US$ 160 Billion, which is an increase of 28% over the previous year's
target.
OUTLOOK:
In view of the healthy growth of the global economy expected in the next few
years, as also the Indian economy entering a high growth phase and reflecting
India's increasing participation in the burgeoning global seaborne trade, the
NMDP initiative (National Maritime Development Programme) of the Government
envisages that the total cargo traffic at all Indian Ports would increase from
the present level of around 416 Million Tonnes (2005-2006) to 982.5 Million
Tonnes at by 2013-14. The prospects for Indian Shipping in the coming few years
are, therefore, quite promising.
BULK CARRIER &
TANKER:
The Bulk Carrier & Tanker has been further sub-divided into two segments
viz. (I) Tanker and (II) Dry Bulk.
I) Tanker:
INDUSTRY STRUCTURE AND
DEVELOPMENTS:
World Scenario:
The global economy witnessed a growth of about 4.6% in 2006, which was
marginally higher than the growth of about 4.2% in 2005. In so called 'Emerging
Asia' economic activity continued to expand at a brisk pace supported by very
strong growth in both China and India. In China, the Gross Domestic Product
(GDP) expanded by 10.7% in 2006, while in India the growth rate was 9.2%, due
to increased consumption, investment and exports.
Growth has however been accompanied by spectra of rising inflation.
The global oil demand in 2006 was estimated at 84.57 mbpd (million barrels per
day), which was about 0.97 mbpd higher than the demand in 2005, whereas the
global oil supply was 85.45 mbpd in 2006 as compared to 84.46 mbpd in 2005
thereby registering about 1.1% growth over 2005 level. During the year, the oil
market witnessed both the 'crest' and 'troughs' as the world witnessed various
important developments that changed the course of the market from time to time.
Israel-Lebanon conflict in July, Iran's firm stance on its nuclear programme
and nearing hurricane season in U.S. Gulf raised the fear of supply disruption
leading to speculative buying.
Further, due to continued insurgency in Nigeria, crude supplies remained
tight. As a result, the crude oil prices rose steadily and peaked at US$77.05
per barrel for spot in early August 2006. With the oil prices rising significantly
over the past couple of years, the oil companies are focusing on 'deep-water'
sub-sea projects and better means of recovery at old fields to increase
production. With the availability of less expensive and less complicated
technology, a number of exploration activities have been undertaken in the
recent years.
The year 2006 was marked by stagnating Organization of Petroleum Exporting
Countries (OPEC) output and by falling oil demand in major Organization for
Economic Cooperation a Development (OPCD) regions as geopolitical instability
pushed the oil prices up to record-highs. But, fortunately, there were other
forces which bolstered the tanker demand. The concern over security of oil
supplies led many countries to look for other suppliers, the most dramatic
example being that of China, which increased its long-haul imports from West
Africa and Latin America and reduced short-haul imports from other Asian
countries. It is estimated that the crude imports into the developing
Asia/Pacific region grew by global seaborne trade, the NMDP initiative
(National Maritime Development Programme) of the Government envisages that the
total cargo traffic at all Indian Ports would increase from the present level
of around 416 Million Tonnes (2005-2006) to 982.5 Million Tonnes at by 2013-14.
The prospects for Indian Shipping in the coming few years are, therefore, quite
promising.
SEGMENTWISE
PERFORMANCE:
Crude Oil Tankers:
With the dismantling of Administered Price Mechanism (APM) and withdrawal of
the nodal agency status of SCI w.e.f. April 2002, the Company has been
competing with other players in the Global Competitive Market. M/s. Indian Oil
Corporation Limited (IOCL) have started meeting requirements on their own and
awarded Contract of Affreightment (CoA) to SCI for part of their crude sourced
from Persian Gulf on VLCCs, whereas M/s. Hindustan Petroleum Corporation
Limited (HPCL) and M/s. Bharat Petroleum Corporation Limited (BPCL) continued
to have CoA arrangements with SCI for their crude transportation.
During the year 2006-07, the total quantity of crude oil transported by the
Company's tanker fleet was about 29.24 mmt. (which includes 6.0 mmt. on
cross-trades, 12.84 mmt. of imported crude for Indian Oil Industry and 10.4
mmt. on coastal movement) as compared to 31.63 mmt. during the year 2005-06
(which includes 6.67 mmt. on cross-trades, 12.80 mmt. of imported crude for
Indian Oil Industry and 112.16 mmt. on coastal movement).
SCI, as an integrated service provider, has also handled lighterage operations
during the year 2006-07 at various locations along the Indian coast and
lightened 11.957 mmt. of cargo.
During the year the Company transported 20.99 mmt. of imported crude oil and
10.40 mmt. of crude oil on the coast.
The quantity lifted by in-chartered tankers by the Company was 8.15 mmt.
The above represents 74% of the crude oil carried by the Company's own vessels
and 26% carried by in-chartered vessels, of the total crude transportation for
Indian PSU refineries.
Ship-to-Ship (STS) Lighterage operations:
During this period, 442 lighterage operations for STS transfer of 11.957 mmt.
of imported crude oil and 16 lighterage operations for 0.608 mmt. of indigenous
crude oil, were carried out.
During the year 2006-07, the Company secured new businesses of complete tanker
handling at Single Buoy Mooring (SBM) facility at Dabhol. The operation at
Dabhol commenced in May 2006 and performed 12 operations by the end of the year
on account of BPCL, HPCL and IOCL.
Contract of Affreightment (CoA):
During the year 2006-07, the Company successfully performed CoA with HPCL and
BPCL. The Company also successfully performed CoA with IOCL for transporting
crude oil in VLCC parcel size. During the year, the Company had finalized the
CoA with HPCL for 10.94 mmt. foreign and 1.3 mmt. indigenous crude per year for
2 yrs (1 year + 6 months + 6 months) commencing from 01.10.2006 and with BPCL
for 6 mmt. foreign combined plus 2.35 mmt. indigenous crude per year for 5
years (i.e. 2 years + 1 year + 1 year +1 year) commencing from
01.10.2006.
Employment pattern:
MR-1 Tankers:
The vessel, m.t. Homi Bhaba, performed lighterage operation at Vadinar, Mumbai
High and at PY3. m.t. C.V. Raman was on time charter with IOCL for lighterage
operation at Sandheads and at Panna fields.
LR-1 Tankers:
As a result of revision of regulation 13G and addition of new regulation 13H of
MARPOL Annex 1, SCVs LR-I tankers were unable to load Heavy Grade Oils (HGO)
i.e crude oil and fuel oil cargoes having density greater than 900 kg/m3 @
15'C. Hence, these vessels were not eligible for cross-trade shipments.
However, the Company managed to employ all these LR-1 tankers mainly for
carriage of BH/ Ravva crude along the coast, lighterage operations under the
CoA. Besides, LR-1 tankers were also operated for transportation of crude oil
from Malaysia/WAG from time to time for the Indian Oil Industry.
CSL tankers:
These tankers performed mix of CoA and open market cross-trade voyages. m.t.
J.L. Nehru and m.t. M.L. Nehru, have been successfully employed under CoA and
outside voyages, upon expiry of time charter period with IOCL.
Aframax tankers:
These tankers performed mix of CoA and open market cross-trade voyages both on
time-charter and voyage-charter basis, earning good remuneration. m.t. Desh
Gaurav (as a substitute vessel of m.t. Desh Rakshak) was employed on a long
term time-charter a/c. Stena Bulk for a period of 1 year. m,t. Desh Prem was
employed on time-charter a/c. Westport for period of 6 months and m.t. Desh
Bhakt has been employed on time charter a/c. Norden for a period of one year.
Suezmax tankers:
The Suezmax tankers performed mix of CoA and open market cross-trade voyages.
The vessels, m.t. G.G. Singh, m.t. Desh Shakti and m.t. Desh Shanti were
successfully employed on time charter for some .time and thereafter, performed
voyages on cross-trade.
VLCCs:
Two VLCCs viz. m.t. Desh Ujaala and m.t. Desh Vaibhav performed open market
cross-trade voyages and voyages under SCI/IOCL CoA. The Company has been
successfully employing the tanker fleet for transportation of crude oil for the
Indian Oil Industry and on cross-trade for our esteemed charterers. The Company
took advantage of the premium charter rates for its double-hull tankers in the
tanker freight market and earned additional revenue by deploying them on
cross-trades from time to time.
Tankers on Storage Duty:
During the year under review, the Company regularly deployed LR-I tankers for
storage of crude oil for Oil & Natural Gas Corporation (ONGC) under the
time-charter agreement.
The Company is transporting entire production of Mumbai High crude to various
coastal refineries viz. IOCL, BPCL, HPCL, Kochi Refineries Limited (KRL),
Mangalore Refineries and Petrochemicals Limited (MRPL) and Chennai
Petroleum Corporation Limited (CPCL).
Product Tankers:
During the year, seven vessels viz. m.t. Bhartidasan, m.t. Suvarna Swarajya,
m.t. Sampurna Swarajya, m.t. Lance Naik Albert Ekka PVC, m.t. Flying Officer
Nirmaljit Sekhon PVC and m.t. Major Hoshiar Singh PVC were gainfully employed
with the Indian Oil Industry on time-charter ended on 31st March 2007. m.t..
Basaveshwara was disposed of for scrapping on 10th May 2006. m.t. Arun
Khetrapal was successfully employed on voyage charter on cross-trade. m.t.
Rabindranath Tagore performed voyages on cross-trades till June 2006 and
thereafter, was employed with Dorado Tanker Pool. m.t. B.C. Chatterjee was
employed with Dorado Tanker Pool till June 2006 and thereafter, made few
voyages on cross-trades before she was employed on time-charter in September
2006 for 1 year + 6 mot hs. Specialized Vessels:
Company's LPG / Ammonia carriers were operated for carriage of both LPG and
Ammonia. While one tanker serviced HPCL on time-charter for transportation of
LPG from WAG, Malaysia to India as well as coastal movement of LPG from Indian
refineries, the second tanker was deployed on time-charter with Malaysia
International Shipping Corporation (MISC), Malaysia for transportation of
Ammonia on cross-trade in the international market at attractive rates.
Three chemical tankers continue to be deployed under a long-term CoA with Maroc
Phosphor/IMACID. During the year, the three tankers carried about 0.53 mmt. of
phosphoric acid,
OUTLOOK:
With growth in the OECD countries projected to slow by about 1% in 2007
relative to the 2006 pace, there is likelihood of soft landing taking place in
the global economy during 2007. The year 2007 is expected to witness a slower
growth in China and in the rest of the developing economies. For the world as a
whole, the growth will be slowing to 4% in 2007, which would be its slowest
pace since 2003, though it still would be a healthy pace by historical
standard.
After growing by 5.2% in 2006, tanker demand is projected to increase by
somewhat slower pace of 4.6% in 2007, Tonne-mile demand is projected to grow at
a slightly faster pace, but a decline in floating storage and increase in
productivity of the fleet would offset some of these gains.
Asia is still likely to dominate the crude oil story, with imports into
China and developing Asia region expected to continue rising rapidly. In
addition, it is expected that the trend towards longer-haul imports into these
regions to continue in 2007. On a regional basis, it is expected that the oil
consumption in the developing Asia/Pacific region to grow at a rapid annual
pace of about 3.5%, driven primarily by India and China. With recent surge in
ordering activity, tanker deliveries will remain strong. Though, the IMO
regulations begin to persuade owners to send the ships to the scrapyards, most
single-hull vessels under the age of 20 years will continue to trade, as flag
states will be permitted to allow the continued operation of single-hull ships.
As a result of these developments, it is expected that the tanker and combi
fleet to expand by 5.8% in 2007. As a consequence of the above, freight rates
are expected to fail back a bit, relative to their 2006 average levels.
SCI has CoAs with HPCL for a period 01.10.2006 to 30.09.2007 with two
extensions of 6 months each at charterer's option and with BPCL/ KRL combine
for a period 01.10.2006 to 30.09.2008 with one extension of 1 year at
charterer's option and further two extensions of 1 year each with mutual
consent.
Upon completion of charter period with ONGC on 14th May 2006, m.t. Maharshi
Karve was dry-docked for conversion into double-hull tanker at China. This was
the first vessel of SCI converted into double-hull tanker. The vessel was
delivered to ONGC after its conversion on time-charter. Effort is also afoot to
finalize a contract with ONGC for deploying LR-I tankers on time-charter for
D-1 field / Mumbai High.
The reduced marketability and usage of LR-I tankers due to change in MARPOL
regulations and their single hull status posses a major challenge for SCI to
gainfully deploy these vessels. These tankers would continue to be deployed for
coastal movement of indigenous crude and import of crude oil from Arabian Gulf
under CoA.
Contract with MRPL for transportation of BH crude will be continued. The
movement of clean petroleum products along the coast would remain steady and
our product tankers would continue to remain deployed on time charter with
Indian oil companies.
Proactive
Measures:
After the withdrawal of nodal agency status for transportation of crude oil for
PSU refineries, despite competitive market, the Company effectively deployed
its tanker fleet in areas other than India-centric business. The tankers were
deployed on cross-trade, long term and on spot at an attractive remunerations,
with the reputed charterers in the international market. The Company has always
given high priority to the regular and preventive maintenance of the fleet to
minimize break-down/ off-hires and cost.
Integrated Management System
(IMS):
In order that our tankers maintain the highest standards and remain competitive
and marketable, SCI has ventured to implement the Integrated Management System
(IMS) that encompasses provisions of Environmental Management System of the ISO
and Occupational Health & Safety Management System. The IMS also covers
within its ambit; Risk Assessment, Hazard Identification Et Analysis and Tanker
Management and Self Assessment (TMSA). TMSA is the requirement of Oil Majors around
the world and offers a standard framework for assessment of ship-operators'
management system.
Ship-operators are expected to conduct and regularly review their TMSA
assessment on line against the highest practices recommended in their
programme. Implementation of IMS has been taken up as a time-bound programme to
maintain profitability of SCI vessels at the internationally highest
levels.
Outstanding Payment from the oil
industry:
As on 31.03.2007, payment under various heads outstanding from the oil industry
was approximately Rs.194.05 crores. A substantial portion of the outstandings
was towards freight, demurrage and charter hire in respect of tankers. The
Company has been continuously following up with the oil industry for
realization of overdue demurrage claims.
DRY BULK:
World Scenario:
The average BDI (Baltic Dry Index) during the year 2006/07 was 3746 (as
compared to 2846 during 2005/ 06), due to the buoyant 3rd & 4th quarter.
The upward movement, in fact, started from August/September 2006 onwards and
the march is continuing unabated as of now.
The Baltic Supramax Index (BSMI) also witnessed a steady increase from April
2006 where the average stood at 1842 and ended March 2007 with a remarkable
average of 3305. The first quarter of 2007 (January to March) average stood at
3023 as against 1633 the average during the corresponding quarter in the
previous year (2006), the quarter during which the BSMI replaced the Baltic
Handymax Index (BHMI) Rising coal shipments from Australia and iron ore
imports from Brazil underpinned rates in all sectors. The surge in spot rates
had been accompanied by a wealth of period charter activity. Strong trade
demand combined with an increase in Australian port delays has been the driving
force in dry bulk market. The surge in Chinese Steel exports has benefited
Handysize and Handymax segments of the market. The rising long-haul Brazilian
exports coupled with worst ever port congestion in Australia fuelled the demand
for Capesize vessels. The grain trade though seasonal had also provided a boost
to dry-bulk market particularly the long-haul US exports to Asia.
Indian Scenario:
The New Castle congestion apart from other factors had pushed up global freight
rates in almost entire bulk segment as the delay in vessels getting berth at
the port had led to less availability of ships in the glebal market. India is
not an exception to this phenomenon. Panamax ships haul about 40% of India's
coal imports, while Handymax vessels carry the remaining 60%. Coal is the
dominant commercial fuel meeting half of commercial primary energy demand and a
third of total energy needs.
Shipments of iron ore from India declined in March due to Government's
imposition of export duty of Rs.300 per tonne. While April 06' to Feb 07'
shipments stood at 85.61 mmt. as compared to 78.57 mmt. in the corresponding
period of the previous year (2005-06), the March 2007 shipments declined in
comparison with the corresponding period of the previous year due to rise in
duty.
SEGMENTWISE PERFORMANCE:
Company owns 20 bulk carriers (average age 18 yrs) as on 31st March 2007
comprising of 15 Handymax and 5 Handysize vessels.
The 11 units of Handymax vessels were primarily deployed on a triangular voyage
for transportation of coking coal from Australia to ECI both on CoA and spot
basis for Steel Authority of India Limited (SAIL), Kolkata and Vizag Steel
Plant (VSP), Vizag and then deployed for carrying iron ore from ECI to China on
spot basis. These vessels were some times deployed for carriage of metcoke from
China to India on spot as well as on CoA. On account of SAIL and VSP, SCI
tonnages had lifted from Australia about 12,50,530 mt & 5,08,462 mt of
coking coal respectively and about 2,10,338 mt of metcoke from China on account
of VSP & Kudremukh Iron & Steel Company (KISCO) during the year
2006-07. In addition to the above, a few Handymax vessels, primarily younger
tonnages of 45000 DWT, were deployed on short period charter in order to take
advantage of the buoyant period charter market.
The 5 units of Handysize vessels were mainly employed on cross-trades for
short-term/ long-term period charters or spot basis to carry overseas cargoes
like urea, steel, grain, fertilizers, agri-products etc.
During the year under review, 2 nos bulk carriers, m.v. Rani Padmini (Panamax)
and m.v. Lok Pratima (Handysize) were disposed off for further
trading/scrapping on 7th August 2006 and 8th February 2007 respectively.
OUTLOOK:
The average BDI was 2465 in April 2006 and has climbed upwards to 5138 in March
2007 representing an increase of 2,673 points. In the dry-bulk market, there
was a rise in the freight rates. Fuelled principally by worst ever congestion
levels off Australia, the Chinese ban on Indian iron ore coupled with former's
insatiable appetite for the commodity, precipitated a tonnage shortage in the
Pacific. This is in spite of record new building deliveries and continued
ordering levels and an order book set at some 27% of the fleet. There is little
sign that the congestion problem will be fixed quickly. Although the port of
Newcastle will implement a new coal tonnage quota system, Capacity Balancing
System (CBS) effective 1st April 2007, it is expected that delays in the region
will not subside significantly until July 2007. In addition, the new Indian
iron ore export tax should result in a modest increase in Brazilian iron ore
exports, and this has already led to increased port congestion in South
America, which is also likely to persist over the next few months. As a result
of the lower level of fleet productivity, the freight rates shall also remain
firm in the 2nd quarter of 2007. However, the combination of various factors
like improved fleet productivity, a mild slow down in trade demand and pick up
in deliveries is expected to put a downward pressure on freight rates in the
second half of 2007.
DISCUSSION ON
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE (BULK CARRIER AND
TANKER):
The overall financial performance of tankers and bulk carriers during the year was
notable. The contribution of crude sector has been the maximum.
The performance of product tankers and specialized vessels has also been
very impressive. The Bulk Carrier Sector has performed better as compared to
the previous year. The Bulk Carrier & Tanker segment (Tanker and Dry Bulk
together) recorded a revenue of Rs.31115.500 millions in 2006-07 as compared to
Rs.28039 millions in 2005-06. The Profit before Tax and interest also rose from
Rs.8338.500 millions in 2005-06 to Rs.8932.300 millions.
LINER & PASSENGER SERVICES:
INDUSTRY STRUCTURE AND DEVELOPMENTS:
World Scenario:
Worldwide container trade has been growing at about 9% CAGR over the last
decade. However, there has been a major upward swing in the global container
vessel fleet and, with the huge increase in capacity, freight rate levels have
been experiencing substantial reduction during the last year or so. The year
2006-07, despite steady growth in trade volumes, saw most of the major
container lines reporting a decline in revenue with some of them reporting
heavy losses in the business.
Indian Scenario:
India has also been witnessing a surge in containerized trade with the
container traffic at Indian ports growing at over 12% annually over the last
decade, and expected to continue its high growth phase for some more years. The
SCI is still the only Indian main carrier, providing services from India to
major global destinations. The evident growth in Indian trade has attracted
many major carriers, who either operate direct services from India or ensure
that their East & West services also call one or more of the Indian
ports.
JOINT VENTURE
COMPANIES:
Irano-Hind Shipping Company:
Joint Venture Company in Iran continues to perform satisfactorily and during
the Iranian year 1385 (from 21.3.2006 to 20.3,2007) earned a net profit after
tax of Iranian Rials 33.336 billion (USD 3.683 million). The aggregate
provisional net profit after tax of the joint venture company and its
subsidiaries for the Iranian y-ar 1385 stood at Iranian Rials 163.828 billion
(USD 18.102 million). The fleet owned by the Joint Venture Company together
with its subsidiaries, as at 20th March 2007, stood at seven ships with an
aggregate of 0.335 million DWT During the year 1385 the Company took delivery
of one Supramax Bulk Carrier of 52,466 DWT and contracted a new building
Suezmax tanker of 158,500 DWT with delivery slated for November 2009. There
were no deletions to the fleet during the year 1385.
Joint Venture Company paid a record dividend of Rials 40 billion (USD 4.323
million) for the year 2005-06 (Iranian year 1384) to shareholders SCI and IRISL
of which an amount of equivalent USD 2.117 million was paid to SCI in March
2007.
SCI's Joint Venture in LNG (Liquified
Natural Gas) Vessels:
From the inception of the two Joint Venture Companies (JVC), namely India LNG
Transport Companies No.1 & 2 Limited, till 31st March 2007, both vessels,
SS Disha and SS Raahi operated without any off-hires and have carried about 120
cargoes and 83 cargoes of LNG, respectively. SS Disha, the first of the two LNG
tankers was dry-docked in March-April 2006 and SS Raahi was dry-docked in
March-April 2007 and both of them are back in service.
Company has extended Shareholders' loan to the two companies, which includes the
equity component along with interest on unpaid Shareholders' loan. During the
year 2006-07, an amount of US$ 0.786 million of Shareholders' loan and US$
2.978 million as interest on Shareholders' loan has been repaid by the joint
ventures to SCI. The outstanding amount of Shareholders' loan as on 31st March
2007 is US$ 36.955 million.
The third JVC, India LNG Transport Company No. 3 Limited, set up to service the
Dahej Expansion, was formed on 21.02.2006. Pursuant to the execution of the TCA
(Time Charter agreement) and other related project agreements viz. SBC (Ship
Building Contract) etc., the Loan Agreement was executed on 19.12.2006 by the
JVC for a loan of US$ 178.29 million. The conditions precedent set out in the
Loan Agreement for the first draw-down have been met on 24.04.2007 and about
US$ 7.31 million has been disbursed to SCL The outstanding Shareholders' loan
would be about US$ 15.45 million. The LNG tanker, to be named SS Aseem, is
scheduled to be delivered in the 4th Quarter of 2009 and will transport 2.5
million tons per annum of LNG from Ras Gas, Qatar to Dahej for Petronet LNG
Limited's expansion project.
Joint Venture Company for Chemical
Carriers (SCI Forbes Limited):
Company has formed a joint venture with M/s. Forbes Gokak Limited and M/s.
Sterling Investment Pvt. Limited for owning and operating Chemical Tankers, The
JVC was incorporated on 14.08.2006 as 'SCI Forbes Limited'. The JV company has
placed orders for 4 Nos. Chemical Tankers of about 13,000 DWT each which would
be delivered in early 2009.
SCI's participation in the Sethusamudram
Ship Canal Project:
The Government of India through the Ministry of Shipping, Road Transport &
Highways, has set up a 'Special Purpose Vehicle' (SPV) in the name and style
'Sethusamudram Corporation Limited' (SCL), to raise finance and to facilitate
creation and operation of a navigable channel from Gulf of Mannar to Bay of
Bengal through Palk Bay (Sethusamudram Ship Channel). As per the Government
directive, this Project is to be funded by way of equity contributions from
various PSUs including SCL The SCI Board decided to participate in the project
with a capital investment upto Rs. 50 crores. As on 31.03.2007, the SCI's total
contribution towards equity in SCL is Rs.23.50 Crores as on the date of this
report.
Memorandum of Understanding (MOU) with the Ministry of Shipping Road Transport
& Highways Performance Rating under MOU system:
For over a decade, the Company's annual performance under the MOU system based
on Audited Results has been rated as 'Excellent'. For the Year 2006-2007, the
performance on the basis of 'Provisional Results' has also been rated as
'Excellent' (Provisional).
AS PER WEB:
Profile
The Shipping Corporation of India was established on 2nd October 1961 by
the amalgamation of Eastern Shipping Corporation and Western Shipping
Corporation. Starting out as a marginal Liner shipping company with just 19
vessels, the SCI today has metamorphosed into a giant conglomerate having 83
ships of 4.6 million DWT with substantial interests in 10 different segments of
the shipping trade.
Sailing through for over 4 decades, the SCI today has a significant presence on
the global maritime map and is undoubtedly the Country`s premier shipping line.
The SCI owns and operates about 35% of the Indian tonnage and operates in
practically all areas of shipping business servicing both national and
international trades. Keeping in view the demands of the nation`s trade, the
SCI over the years has diversified into a large number of areas, and is today
the only Indian shipping company operating break-bulk service, international
container service, liquid / dry bulk service, offshore service, passenger
service, in addition to manning / managing a large number of vessels on behalf
of various Government Departments and Organisations.
The SCI has contributed immensely to the growth of India s EXIM trade as well
as contributing to the Nation s exchequer by being a net earner / saver of
valuable foreign exchange. Over the years, SCI has assumed the role of a
lifeline for the country during times of emergency and distress by ensuring
continued and uninterrupted supply of crude oil, the fuel, which drives the
country`s economy. The liberalization and globalisation of Indian economy has
presented the SCI with a whole lot of opportunities to grow and diversify and
the SCI is ideally positioned to avail of these opportunities due to the
presence of a modern, young and diversified fleet coupled with the presence of
a large pool of well trained and experienced manpower both ashore and afloat to
operate it.
The SCI is a profitable commercial venture of Government of India and has an
excellent track record of earning profits since its inception barring a brief
period when the shipping industry worldwide was under depression. The SCI`s
annual performance has been rated Excellent consecutively for a record 12 times
under the Memorandum of Understanding (MoU) signed with the Government of
India.
The Government, mindful of the excellent track record, bestowed the status of
Mini Ratna leading to enhanced delegation of powers to the Board in the areas
of Capital Investment, Joint Ventures, Opening of New Offices, etc. The
continued profitability of the SCI has been due to the innovative and timely
strategies and measures adopted by the enlightened SCI Management which
included, inter alia, judicious and optimal utilization of available tonnage by
deploying it in the most remunerative sectors, commencement of new services in
niche markets, identification and expeditious disposal of value destroyers or
non-performing assets, forging alliances with the significant players in the
market to enhance cargo availability and apportion expenses, administrative
cost cutting, etc.
The SCI takes pride in the fact that it is a responsible and socially committed
owner, placing greater emphasis on the safety of life, vessels, cargo and the
environment it operates in; and has evolved into a highly quality and safety
conscious organization. The SCI has also received numerous awards and accolades
from various national and international organizations for achieving excellence
in customer satisfaction, operational efficiencies, Human Resource training,
emergency preparedness etc.
In tune with the worldwide trend of specialisations and the premium placed on
core-competencies, the SCI has charted a definitive course of action for the
future. The thrust areas for growth and diversification focus on energy
transportation including the sunrise segment of LNG transportation and
container transportation. The SCI s forays into these areas could either take
the form of direct capital investment or by forging strategic and symbiotic
alliances with significant players in the market. The SCI has heralded India`s
entry into the specialised field of LNG transportation by acquiring a stake in
the two Indian LNG transportation agreements contracted till date that too
after a global bidding process. The presence of the SCI in these LNG
transportation contracts would go a long way in establishing itself as a major
LNG transportation player in the world.
The SCI possesses all the ingredients essential for emerging as a truly world
class international shipping company and the endeavour of the Management is to
facilitate the release of the boundless streams of energy and initiatives and
channeling it for the future growth and prosperity of the Company and the
Nation.
The Shipping Corporation of India Limited (SCI), on 27th October 2006, signed Contracts with STX Shipbuilding Company Limited of South Korea for building and delivering six Newbuilding LR-I Product Tankers. This is the largest shipbuilding contract in terms of value, signed by SCI since its inception.
The Shipping Corporation of India Limited (SCI), on 14th November 2006, signed Contracts with Hyundai Samho Heavy Industries, of South Korea for building and delivering two Newbuilding 4,400 TEU Container Vessels. The deliveries of these vessels are scheduled by the end of November`2008.
Press Releases
SCI enters into an MOU with NITC
25th January 2005
The Shipping Corporation of India Limited (SCI) has entered into a Memorandum
of Understanding (MoU) with the National Iranian Tanker Company (NITC) to form
a joint venture for transportation of LNG, Petrochemicals and other crude oil
products from Iran to India with a view to further strengthen its position as
the leading Indian LNG shipping company The proposed joint venture is envisaged
to build, own and operate LNG tankers that will carry the LNG exports from Iran
to India. SCI has another joint venture in Iran, viz. Irano Hind Shipping
Company, in the liner-shipping sector, which continues to operate successfully
for over 3 decades.
NITC is the leading Iranian tanker company with a tonnage of over 6 million DWT
and is the best-poised Iranian shipping company, along with SCI to take up LNG
transportation projects. India has recently struck a deal with National Iranian
Oil Company (NIOC) for purchase of 5 mmtpa of LNG from the large South Pars oil
fields in Iran. These quantities are expected to increase further in view of
the large reserves of Natural gas and good long standing relationship between
the two countries.
With import of LNG getting a significant thrust in order to bridge the gap
between demand and supply in the country, SCI expects to, yet again, play a key
role in transportation of this eco-friendly source of energy for the country.
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.40.15 |
|
UK Pound |
1 |
Rs.78.26 |
|
Euro |
1 |
Rs.59.06 |
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. |
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 |
|