MIRA
INFORM REPORT
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Report Date : |
23.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
COCHIN SHIPYARD LIMITED |
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Registered Office : |
Administrative Building,
39/6080 Cohin Shipyard Premises, Perumanoor M.G. Road, Ernakulam,
Kerala-682015 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Year of Establishment: |
1973 |
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Com. Reg. No.: |
09-2414 |
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CIN No.: [Company
Identification No.] |
U63032KL1972GO1002414 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHNC00784A |
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PAN No.: [Permanent
Account No.] |
46-011-CT- |
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Legal Form : |
A Closely Held Public Limited Liability Company It is a Government of India undertaking with limited liability of shareholders. Principal shareholder is President of India, Government of India. |
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Line of Business : |
Ship building and Repair Yard |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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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 13000000 |
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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 Government of India company. Available information indicates high financial responsibility of the company. Profitability is under severe pressure. Payments to local suppliers are reported as slow but correct. However, payments to overseas suppliers are met in time. General financial position of the company is satisfactory. The company can be considered normal for business dealings at usual trade terms and conditions |
INFORMATION PARTED
BY
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Name : |
Mr. Ramdas |
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Designation : |
Assistant Manager |
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Date : |
12.05.2008 |
LOCATIONS
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Registered Office : |
Administrative
Building, 39/6080 Cohin Shipyard Premises, Perumanoor M.G. Road, Ernakulam,
Kerla-682015, India |
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Tel. No.: |
91-484-2361181/ 23801 |
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Fax No.: |
91-484-2370897 |
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E-Mail : |
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Area : |
Owned |
DIRECTORS
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Name : |
Mr. Jitendran Muthukrishnan |
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Designation : |
Chairman and Managing Director |
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Address : |
Quarter No. 8, Shipyard Estate Kochi, Ernakulam, Kerla- 682015 |
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Date of Birth/Age : |
12.07.1951 |
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Date of Appointment : |
01.04.2002 |
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Name : |
Mr.Susheel Kumar |
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Designation : |
Director |
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Address : |
16, Meena Bagh, New Delhi |
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Date of Birth/Age : |
21.04.1958 |
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Date of Appointment : |
31.10.2003 |
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Name : |
Mr. D Babu Paul |
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Designation : |
Director |
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Address : |
Cheerothottam, Kawdiar, Trivandrum, Kerla- 695003 |
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Date of Birth/Age : |
14.04.19414 |
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Date of Appointment : |
29.07.2003 |
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Name : |
Mr. U. Sundararajan |
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Designation : |
Director |
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Address : |
1904-L Riviera Towers Lokhandwala, Complex, Kandivali (East),
Mumbai-400101, Maharashtra, India |
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Date of Birth/Age : |
14.06.1942 |
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Date of Appointment : |
29.07.2003 |
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Name : |
Mr. I. M. Pandey |
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Designation : |
Director |
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Address : |
Indian Institute of Management, Vastrapur, Ahmedabad- 380015 |
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Date of Birth/Age : |
25.08.1947 |
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Date of Appointment : |
17.02.2004 |
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Name : |
Ms. Sheetal Thomas |
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Designation : |
Director |
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Address : |
B3L, Millenium Apartments, Thycaud-Po, Trivandurm, Kerla |
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Date of Birth/Age : |
16.03.1957 |
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Date of Appointment : |
20.07.2005 |
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Name : |
Mr. Manikrishna Murthy |
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Designation : |
Charirman cum Managing Director |
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Address : |
Shipyard House, Cochin Shipyard Limited, Kochi, Ernakulam, Kerla-
682015 |
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Date of Birth/Age : |
08.02.1945 |
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Date of Appointment : |
01.10.2001 |
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Name : |
Mr. P.D. Mathew |
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Designation : |
Whole Time Director |
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Address : |
Polimoottil House, Guest House Road, Thiruvankulam, Ernakulam,
Kerla-682305 |
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Date of Birth/Age : |
03.06.1945 |
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Date of Appointment : |
14.02.2000 |
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Name : |
Mr. G. Rajasekharan |
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Designation : |
Director |
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Address : |
A-5, l, Millenium Apartments Jagathy Vazhuthacaud, Trivandrum, Kerla |
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Date of Birth/Age : |
20.03.1953 |
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Date of Appointment : |
02.12.2002 |
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Name : |
Mr. P.C. Dhiman |
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Designation : |
Director |
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Address : |
A-62, SectorX, Nivedita Kunj, R. K. Puram, New Delhi, Delhi-110066 |
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Date of Birth/Age : |
04.07.1956 |
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Date of Appointment : |
15.05.2006 |
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Other Directorship: |
Shipping Corporation of India Limited U63030Mh2004PLC008033 |
KEY EXECUTIVES
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Name : |
Mr. V. Kala |
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Designation : |
Company Secretary |
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Name : |
Cmde. M. K. Murthy |
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Designation : |
Director (Operations) |
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Name : |
Mr. P. Ramji |
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Designation : |
Company Secretary / Chief of PR |
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Name : |
Mr. P. S. Mani Iyer |
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Designation : |
Chief General Manager (Marketing) |
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Name : |
Mr. A. J. Antony |
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Designation : |
Chief General Manager (Ship Repair) |
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Name : |
Mr. B. Sree Ranganathan |
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Designation : |
Chief General Manager (Business Development) |
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Name : |
Mr. P. D. Mathew |
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Designation : |
General Manager (Finance) |
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Name : |
Mr. V. P. Nair |
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Designation : |
General Manager (Project) |
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Name : |
Mr. P. Ramji |
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Designation : |
Deputy General Manager (Corporate Matters) |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 29.09.2005
|
Names of Shareholders |
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No. of Shares |
|
President of India |
|
1132797 |
|
Dinesh Kumar |
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1 |
|
Jintendran Muthukrishnan |
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2 |
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President of india |
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1191420 |
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Total |
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2324220 |
BUSINESS DETAILS
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Line of Business : |
Ship building and Repair Yard |
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Products : |
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Exports : |
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Products : |
Ships |
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Countries : |
Norway and Denmark |
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Imports : |
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Products : |
Engines and Steels |
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Countries : |
Norway and Russia |
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Terms : |
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Purchasing : |
L/C, Cash and Credit |
GENERAL
INFORMATION
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Customers : |
Single Type Consumer |
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No. of Employees : |
2100 |
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Bankers : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Krishnamurhty and Krishnanath Chartered Accountant |
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Address : |
Xxix/3217, Paliam Road, Cochin-682016, Kerala, India |
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Associates/Subsidiaries : |
Shipping Corporation of India Limited U63030MH2004PLC008033 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1300000 |
Equity Shares |
Rs.1000/-each |
Rs.1300.000 Millions |
|
1200000 |
Preference Shares |
Rs. 1000/ each |
Rs. 1200.000 Millions |
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Total |
|
Rs.2500.000 |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1132800 |
Equity Shares |
Rs.
1000/-each |
Rs.113.280 Millions |
|
1191420 |
Preference Shares |
Rs.1000/-each |
Rs.1191.420 Millions |
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Total |
|
Rs. 1304.700 |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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|
|
|
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1] Share Capital |
2324.220 |
2324.220 |
2324.220 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
936.662 |
550.684 |
368.347 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3260.882 |
2874.904 |
2692.567 |
|
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LOAN FUNDS |
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|
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1] Secured Loans |
1023.613 |
1653.407 |
1547.247 |
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2] Unsecured Loans |
795.911 |
547.595 |
708.531 |
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TOTAL BORROWING |
1819.524 |
2201.002 |
2255.778 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5080.406 |
5075.906 |
4948.345 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
819.106 |
763.339 |
783.033 |
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Capital work-in-progress |
75.718 |
71.608 |
11.854 |
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INVESTMENT |
0.850 |
0.150 |
0.150 |
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DEFERREX TAX ASSETS |
37.832 |
7.649 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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Inventories |
3073.197
|
3047.581 |
1656.127 |
|
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Sundry Debtors |
2800.424
|
2555.826 |
1677.545 |
|
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Cash & Bank Balances |
6620.856
|
2409.908 |
4268.171 |
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Other Current Assets |
520.636
|
588.831 |
697.505 |
|
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Loans & Advances |
1628.036
|
1293.913 |
1144.561 |
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Total
Current Assets |
14643.149
|
9896.059 |
9443.909 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Current Liabilities |
8920.813
|
4599.600 |
4250.224 |
|
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Provisions |
1575.464
|
1063.361 |
1040.377 |
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Total
Current Liabilities |
10496.277
|
5662.961 |
5290.601 |
|
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Net Current Assets |
4146.872
|
4233.098 |
4153.308 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
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Intangible Assets |
0.028 |
0.062 |
0.000 |
|
|
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|
|
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TOTAL |
5080.406 |
5075.906 |
4948.345 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
|
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Sales Turnover |
7223.579 |
3759.470 |
2764.791 |
|
|
Other Income |
474.650 |
427.257 |
3233.088 |
|
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Total Income |
7698.229 |
4186.727 |
5997.879 |
|
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|
|
|
|
Profit/(Loss) Before Tax |
857.745 |
254.457 |
120.975 |
|
|
Provision for Taxation |
-- |
-- |
47.587 |
|
|
Profit/(Loss) After Tax |
857.745 |
254.457 |
73.388 |
|
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Earnings in Foreign Currency : |
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Export Earnings |
5089.437 |
1899.295 |
1202.642 |
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Expenditures : |
|
|
|
|
|
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Raw Material Consumed |
4650.503 |
2157.583 |
1332.827 |
|
|
Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
|
|
Consumption of stores and spares parts |
121.910 |
67.985 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
[758.207] |
[342.175] |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
742.121 |
686.544 |
680.780 |
|
|
Managerial Remuneration |
1.738 |
1.166 |
1.756 |
|
|
Payment to Auditors |
0.225 |
.150 |
0.150 |
|
|
Interest |
105.111 |
77.332 |
39.284 |
|
|
Insurance Expenses |
1.150 |
1.469 |
1.006 |
|
|
Power & Fuel |
168.997 |
132.161 |
100.755 |
|
|
Depreciation & Amortization |
127.214 |
196.692 |
0.000 |
|
|
Other Expenditure |
1679.722 |
953.363 |
3720.346 |
|
Total Expenditure |
6840.484 |
3932.270 |
5876.904 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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|
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|
PAT / Total Income |
(%) |
11.38
|
6.08 |
1.22 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
11.87
|
6.77 |
4.38 |
|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.55
|
2.39 |
1.18 |
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.09 |
0.04 |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
3.78
|
2.74 |
2.80 |
|
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|
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|
|
Current Ratio (Current Asset/Current Liability) |
|
1.40
|
1.75 |
1.79 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U63032KL1972GO1002414 |
|
Name of the
company |
COCHIN SHIPYARD
LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
Administrative
Building, 39/6080 Cohin Shipyard Premises, Perumanoor M.G. Road, Ernakulam,
Kerla-682015, India |
|
Type of charge |
Movable Property |
|
Particular of
charge holder |
Union Bank of
India, Thevara Branch, Kochi—682015, Kerla, India |
|
Nature of
description of the instrument creating or modifying the charge |
S-3 Hypothecation
(Goods) Agreement |
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Date of
instrument Creating the charge |
28.12.2007 |
|
Amount secured by
the charge |
Rs. 1500.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 8.30% per annum with
monthly rests or at the rate to be decided by the Bank from time to time. Terms of Repayment On Demand Margin Nil Extent and Operation of the charge First Charge |
|
Short particulars
of the property charged |
Hypothecation of
all stocks of steel, raw materials kept in Cochin shipyard |
|
Name of the company |
V. Kala
|
|
Presented
By |
Company Secretary |
|
1) Date and description of instrument creating the change |
Agreement of loan
for overall working capital limit dated 23.03.2004 Letter regarding
the grant of individual limits within the overall working capital limit dated
23.03.2004 Agreement of
hypothecation of goods and assets dated 23.03.2004 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 600.000
Millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation by
way of first charge all the borrowers goods, book debts and all other movable
assets. Hypothecation of
all present and future goods, book debts and all other movable assets of the
borrower including documents of title to goods, over standing moneys,
receivables etc. Hypothecation of
current assets of stock of materials, work in process, finished goods and
documents of title to goods. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest @ 75 bps
over LIBOR stipulated case by case with each availment as per bank’s normal
rates. |
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of
Travancore, Broadway, Ernakulam |
|
6) Date and brief description of instrument modifying the charge |
Letter regarding grant
of individual limits with the overall working capital limit dated 30th
November 2004 Supplemental
agreement of hypothecation of goods and assets for increase in the overall
working capital limit dated 30.11.2004 |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The existing cash
credit / packing credit limit had been enchanced from Rs. 600.000 Millions to
Rs. 900.000 Millions, with a sub limit of Rs. 300 Millions for Foreign Demand
Bills Purchased / Export Bills rediscounting limits, extending the existing
securities for the enhanced limit also.
Letter regarding
grant of individual limits with the overall working capital limit dated 30th
November 2004 |
Biodata:
Subject was established in 1972 under technical collaboration with
MHI,Japan. CSL has so far built a wide variety of vessels including Tankers,Bulk
Carriers and Heavy Engineering Structures.Recently CSL had undertaken
construction of tugs for various ports of India,Patrol Vessels,Passenger
Vessels and Docking Pontoons.
CSL has commenced construction of a second 94000 DWT double hull tanker
for Shipping Corporation of India. The company has constantly sought the
support of the best in the business.
It has an MOU with M/s Dalian New Shipyard,China,IHI Marine
International,Japan and Mitsubishi Corporation,Japan for the joint rendering of
LKII tankers for Shipping Corporation of India.ONGC's offshore projects have
been taken up by CSL in association with M/s Coflexip Stena Offshore Asia
Pacific Pvt Ltd. BSA Shipping Agencies ANS,Oslo Norway has been associated with
CSL for promoting both shiprepair and shipbuilding in Norway,Sweden and
Denmark.
Shipyard diversification efforts into high value added products like LNG
Carriers,SPMS,Dredgers,Floating Cranes etc were fruitful. It has also
constructed two passenger vessels for Union Territory of Lakshadweep and a
dredger for the Chennai Port Trust. The covered Paint Coating Shop is being set
up and is expected to commissioned in the fag end of 2001-02.
CSL is spread over 190 acres of land and has 2 docks and 3 quays. Apart
from this the yard has a Steel Stockyard that can hold upto 60,000 tonnes of
steel,the largest Hull Fabrication Shop in India with 30,000 Sqm covered
area.
The Shipyard won the work of upgrading of ONGC's floater 'Sagar Shakti'
at a cost of Rs.75 crores and 'Sagar Bhushan' at a cost of Rs.40.68 crores.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.15 |
|
UK Pound |
1 |
Rs.85.08 |
|
Euro |
1 |
Rs.68.10 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
71 |
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 |
|