MIRA INFORM REPORT

 

 

Report Date :

02.08.2011

 

IDENTIFICATION DETAILS

 

Name :

BHARATI SHIPYARD LIMITED

 

 

Registered Office :

302, Wakefield House, 3rd Floor, Sprott Road, Ballard Estate, Mumbai – 400001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

22.06.1976

 

 

Com. Reg. No.:

11-19092

 

 

Capital Investment / Paid-up Capital :

Rs.289.393 Millions

 

 

CIN No.:

[Company Identification No.]

L61100MH1976PLC019092

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMB11876E

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.

 

 

Line of Business :

The company’s principal activity is to design and construction of various types of sea going, coastal, harbour, inland crafts and vessels.

 

 

No. of Employees :

1500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (64)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

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

 

 

Maximum Credit Limit :

USD 34000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

 

NOTES:

 

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Sunil Panchal

Designation :

Manager

Contact No.:

91-22-30289264

Date :

01.08.2011

 

 

LOCATIONS

 

Registered Office :

302, Wakefield House, 3rd Floor, Sprott Road, Ballard Estate, Mumbai-400001, Maharashtra, India

Tel. No.:

91-22-30289200/ 30289201

Fax No.:

91-22-30289222

E-Mail :

bharati@bom5.vsnl.net.in

info@bharatishipyard.com

spanchal@bharatishipyard.com

uapatel@bharatishipyard.com

Website :

http://www.bharatishipyard.com

Area :

1500 sq. ft.

Location :

Owned

 

 

Head Office :

Mirya Bunder, Ratnagiri, Maharashtra, India

Tel. No.:

91-2352-232340 / 232371

Fax No.:

91-2352-232524

 

 

Head Office :

Ghodbunder, District Thane, Maharashtra, India 

Tel. No.:

91-22-28111497 / 28111093

Fax No.:

91-22-28103360

 

 

Corporate Office :

Oberoi Chambers- II, Ground Floor, Link Road, Near Lakshmi Industrial Estate, Andheri (West), Mumbai-400053, Maharashtra, India

Tel. No. :

91-22-39506800

Fax No. :

91-22-39506900

E mail:

info@bhartishipyard.com

 

 

DIRECTORS

 

(AS ON 31.03.2010)

 

Name :

Mr. Prakash Chandra Kapoor

Designation :

Managing Director

Address :

7/8, Krishna Kunj, Sarojini Road, Santacruz (West), Mumbai – 400054, Maharashtra, India

Qualification :

B. Tech.

Date of Appointment :

12.07.2004

Previous Employment :

Mazgaon Dock Limited

Other Directorship:

·         Pinky Shipyard Private Limited

·         Bharti Shipping and Dredging Company Private Limited

·         Bharati Marine Construction and Engg. Private Limited

·         Mangaldeep Consultancy Private Limited

·         Swati Silk Mills Private Limited

·         Usha Silk Mills Private Limited

·         Yayuraj Energy Private Limited

·         Vayutatva Energy Projects Private Limited

·         Mutual Industries Limited

·         Bengal Shipyard Limited

Committee Chairmanship

·         Mutual Industries Limited

 

 

Name :

Mr. Vijay Kumar

Designation :

Managing Director

Address :

410/411, Mittal Park, Ruia Park, Juhu, Mumbai – 400 059, Maharashtra, India

Qualification :

B. Tech.

Date of Appointment :

07.06.2004

Previous Employment :

Mazgaon Dock Limited

 

 

Name :

Mr. B L Patwardhan

Designation :

Director [Nominee – SBI]

 

 

Name :

Mr. V P Kamath

Designation :

Director

Profile:

Mr. V P Kamath, CAIIB With a vast experience in Banking, Leasing, Financial Services and Project Financing. Besides this he has also experience in planning and implementation of ventures  in the areas of Housing Finance, Mutual Funds, Forex, Money Changing, etc. He was a member of various Institutional Committees of all India Financial Institutions

Qualification

B.Com (Advance Accounts and Auditing)

Other Directorship:

·         Beldh Engery Projects Limited

·         Batot Hydro Power Limited

·         Greenweiszz Projects Limited

·         Joiner Hydro Power Projects Limited

·         Karma Energy Limited

·         Tapi Energy Projects Limited

·         Weizmann Capital Limited

·         Weizmann Financial Resources (Cochin) Limited

·         Weizmann Forex Limited

·         Weizmann Limited

·         Windia Infrastructure Finance Limited

·         Ramkrishna Iron Works Private Limited

Committee Membership:

·         Weizmann Limited

·         Tapi Energy Projects Limited

·         Windia Infrastructure Finance Limited

Date of appointment:

28.01.2008

 

 

KEY EXECUTIVES

 

Name :

Mr. U. A. Patel

Designation :

Chief General Manager and Company Secretary

E Mail:

uapatel@bharatishipyard.com

 

 

Name :

Mr. Sunil Panchal

Designation :

Manager

 

 

SHAREHOLDING PATTERN

 

AS ON 30.06.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

10,598,774

34.97

Bodies Corporate

2,878,731

9.50

Sub Total

13,477,505

44.47

 

 

 

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

13,477,505

44.47

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

37,250

0.12

Financial Institutions / Banks

3,326,426

10.97

Foreign Institutional Investors

681,967

2.25

Sub Total

4,045,643

13.35

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

3,416,949

11.27

 

 

 

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

7,423,389

24.49

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

1,198,307

3.95

 

 

 

Any Others (Specify)

747,507

2.47

Non Resident Indians

458,331

1.51

Clearing Members

285,163

0.94

Trusts

4,013

0.01

Sub Total

12,786,152

42.19

 

 

 

Total Public shareholding (B)

16,831,795

55.53

 

 

 

Total (A)+(B)

30,309,300

100.00

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

 

 

 

Total (A)+(B)+(C)

30,309,300

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The company’s principal activity is to design and construction of various types of sea going, coastal, harbour, inland crafts and vessels.

 

 

Terms :

 

Selling :

Cash

 

 

Purchasing :

Cash

 

 

GENERAL INFORMATION

 

Customers :

§            Tartos Port General Company, Syria

§            AL Jabar Shipping Agencies And Marine Works, Abu Dhabi

§            Reliance Industries Limited

§            Great Eastern Shipping Company Limited

§            Halul Offshore Services Company, Doha

 

Indian Clients

 

·         Mumbai Port Trust

·         Kolkata Port Trust

·         Chennai Port Trust

·         Kandla Port Trust

·         Paradip Port Trust

·         The Great Offshore

·         Reliance Industries Limited

·         Gujarat Maritime Board

·         Indian Navy

·         Ministry of Surface Transport

·         Shipping Corporation of India

 

Overseas Clients

 

·         Qatar Shipping Company – Qatar

·         Cyprus Ports Authority – Cyprus

·         Al Jaber Est. Abu Dhabi

·         Halul Offshore Services, Qatar

·         Tartous Port General Company

·         Group Bourbon Frances

·         Opielok Berrederungs, Germany

·         Clipper Group Norway

·         Norlines, Norway

·         Ultra Petrol, Argentina

·         Man Ferostaal, Argentina

·         Norwegian Shipping Limited

 

 

No. of Employees :

1500 (Approximately)

 

 

Bankers :

·         State Bank of India,

Churchgate Branch, Mumbai – 400 020, Maharashtra, India

 

·         State Bank of Hyderabad

·         State Bank of Travancore

·         Andhra Bank

·         ICICI Bank

 

 

Facilities :

Secured Loans

31.03.2010

Rs. in Millions

31.03.2009

Rs. in Millions

 

 

 

a) Debentures

900.000

700.000

 

 

 

b) Loans and advances from banks

 

 

i) Cash Credit/ Export Credit

1903.732

2700.212

ii) Term Loans

11475.474

3578.666

 

 

 

c) Loans and Advances from Financial Institutions

750.000

0.000

 

 

 

Total

15029.206

6978.878

 

 

Unsecured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. in Millions

 

 

 

Foreign currency convertible bonds

2875.405

3049.191

Loans and Advances form banks

4514.551

0.000

Loans and advances from others

508.815

0.000

 

 

 

Total

7898.771

3049.191

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

DPH and Company

Chartered Accountant

 

 

Name:

Bhuta Shah and Company

Chartered Accountants

 

 

Solicitors :

 

Name:

Kanga and Company

Chartered Accountants

 

 

Joint Venture :

Bengal Shipyard Limited

 

 

Subsidiaries:

·         Advitiya Urja Private Limited

·         Dhanshree Properties Private Limited

·         Natural Power Ventures Private Limited

·         Nirupam Energy Projects Private Limited

·         Nishita Mercantile Private Limited

·         Pinky Shipyard Private Limited

·         Premila Mercantile Private Limited

·         Vishudh Urja Private Limited

 

 

Associates/Subsidiaries :

·         Bharati Shipping and Dredging  Company Private Limited

·         Bharati Maritime Services Private Limited

·         Bharati Infratech Projects Private Limited

·         Bharati Marine Construction and Engineering Private Limited

·         Harsha Infrastructure Private Limited

·         Sharven Multitrade Private Limited

·         Swati Silk Mills Private Limited

·         Usha Silk Mills Private Limited

·         Vayuraj Energy Projects Private Limited

·         Vayutatva Energy Projects Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 23.09.2010

 

Authorised Capital : Rs.500.000 Millions

 

Issued, Subscribed & Paid-up Capital :Rs.316.878 Millions

 

 

AS ON 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000000

Equity Shares

Rs.10/- Each

Rs.500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

28939300

Equity Shares

(Previous year 27569300) equity shares of Rs.10 each fully paid up including 67011 equity shares allotted to directors of company for consideration other than cash and 4911000 equity shares allotted as fully paid up bonus shares by capitalization of retained profit. In the current financial year 1370000 shares of Rs.10 each were issued on partly conversion of convertible warrant Tranche- 1

Rs.10/- Each

Rs.289.393 Millions

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

289.393

275.693

275.693

2] Share Application Money

0.000

0.000

0.000

3] Convertible Warrents

96.323

0.000

0.000

4] Reserves & Surplus

8122.606

6745.812

5510.422

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

8508.322

7021.505

5786.115

LOAN FUNDS

 

 

 

1] Secured Loans

15029.206

6978.879

2038.967

2] Unsecured Loans

7898.771

3049.191

2271.854

TOTAL BORROWING

22927.977

10028.070

4310.821

DEFERRED TAX LIABILITIES

419.102

345.001

303.328

 

 

 

 

TOTAL

31855.401

17394.576

10400.264

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3721.367

2518.628

1623.640

Capital work-in-progress

7150.728

6156.662

2623.135

 

 

 

 

INVESTMENT

562.388

34.258

46.688

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
12310.911

8478.205

6003.134

 

Sundry Debtors
3583.955

2811.202

1865.097

 

Cash & Bank Balances
2819.208

2279.693

2261.775

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
14255.283

6378.278

2991.121

Total Current Assets
32969.357

19947.378

13121.127

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
2879.820

1099.134

506.537

 

Other Current Liabilities
7533.248

8671.223

5524.328

 

Provisions
2145.157

1511.564

1012.817

Total Current Liabilities
12558.225

11281.921

7043.682

Net Current Assets
20411.132

8665.457

6077.445

 

 

 

 

MISCELLANEOUS EXPENSES

9.786

19.571

29.356

 

 

 

 

TOTAL

31855.401

17394.576

10400.264

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Turnover

12648.174

9340.959

6420.468

 

 

Subsidy

836.180

849.830

597.098

 

 

Other Income

40.069

3.752

33.568

 

 

TOTAL                                     (A)

13524.423

10194.541

7051.134

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Consumed

7040.654

5096.842

792.054

 

 

Manufacturing and Other Expenses

1688.115

1279.033

3616.373

 

 

Employee Cost

1602.140

1250.773

725.506

 

 

TOTAL                                     (B)

10330.909

7626.648

5133.933

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

3193.515

2567.893

1917.201

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

960.993

513.349

215.962

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

2232.522

2054.544

1701.239

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

152.931

100.869

81.372

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

2079.591

1953.675

1619.867

 

 

 

 

 

Less

TAX                                                                  (H)

690.919

620.448

545.396

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1388.672

1333.227

1074.471

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

3225.915

2122.775

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

138.867

133.323

NA

 

 

Proposed Final Dividend

86.818

82.708

NA

 

 

Dividend Distribution Tax Thereon

14.755

14.056

NA

 

BALANCE CARRIED TO THE B/S

4374.147

3225.915

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1247.176

1205.583

664.723

 

TOTAL EARNINGS

1247.176

1205.583

664.723

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

748.541

1416.917

1093.968

 

 

Stores & Spares

5166.057

4874.670

2625.901

 

 

Capital Goods

666.290

1374.295

1113.585

 

TOTAL IMPORTS

6580.888

7665.882

4833.454

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

50.32

48.36

43.41

 

Diluted

41.72

41.81

36.77

 

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

1st Quarter

30.09.2010

2nd Quarter

31.12.2010

3rd Quarter

31.03.2011

4th Quarter

 

 

 

 

 

Net Sales

3625.890

3913.550

3846.710

4413.380

Total Expenditure

2698.800

2802.390

2815.530

2843.690

PBIDT (Excl OI)

927.090

1111.160

1031.180

1569.690

Other Income

4.010

8.160

1.370

0.100

Operating Profit

931.100

1119.320

1032.550

1569.790

Interest

546.890

633.950

634.740

928.590

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

384.210

485.370

397.810

641.200

Depreciation

48.990

51.310

51.000

62.670

Profit Before Tax

335.220

434.060

346.810

578.520

Tax

113.940

141.600

115.200

196.220

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

221.280

292.470

231.610

382.300

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

221.280

292.470

231.610

382.300

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
10.27

13.08

15.24

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
16.44

20.92

25.23

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
7.51

8.70

10.99

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.24

0.28

0.28

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
4.17

3.03

1.96

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.63

1.77

1.86

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2010

 

31.03.2009

31.03.2008

 

(Rs. in Millions)

 

 

Sundry Creditors Other than Small and Medium Enterprises

2879.820

1099.134

506.537

 

 

 

 

Total

 

2879.820

1099.134

506.537

 

 

HISTORY:

 

Subject is one of the leading private sector shipyard in India. They are engaged in design and construction of Sea-going, Coastal, Harbour, Inland crafts and vessels. Bharati Shipyard currently owns two shipyards, which are strategically located at Thane, Ratnagiri, Mangalore and Kolkata. The subsidiary company, Pinky Shipyard owns a shipyard at Goa. Bharati Shipyard Limited was incorporated on June 22, 1976. In the year 1985, the company bagged their first export order for construction of 5 Barges from Yeman through Mazgaon Dock Limited From then, their product range has been upgraded from the simple inland cargo barges to deep-sea trawlers and dredgers to maneuverable and power-packed ocean-going tractor tugs, cargo ships, tankers and vessels required by the offshore industry. In the year 1991, the company bagged order for 2 Specialized Tractor Tugs with installed power of over 4000 BHP from Cyprus Port Authority. In the year 1997, they received order for supply of 2 maneuverable tugs to Reliance India Limited and two nos 80 mtrs long 2,100 ton mini bulk carriers to Greatship Singapore. In the year 2000, they received orders from Qatar Shipping Co and Al Jabar Establishment, Abu Dhabi for supply of 4 nos 5000 HP Azimuthal Stern Drive Tugs and 100 mts long Bitumen Tanker-cum-RoRo Vessel respectively. During the year 2003-04, the company expanded and modernised the shipyard in Ratnagiri to cater to the increasing demands of building custom-made sips up to 25000 DWT. During the year 2004-05, the Company came out with an IPO of 12500000 Equity Shares of Rs 10/- each at a premium of Rs 56/- per share. In January 2005, the company bagged two contracts from The Bourbon Supply Investissements, France for supply of 2 Multipurpose 60 mtr Long Platform Supply vessels. In May 2005, the company bagged contracts from Sea Cargo Skips AS, Norway and Nor Lines AS, Norway for supply of 2 Container Vessels to each company. Pinky Shipyard Private Limited became a subsidiary of the company with effect from October 27, 2005. During the year 2005-06, the company commissioned a wind farm, consisting of 11 Wind Energy Generators at Brahmanvel in Maharashtra. In September 2005, the company bagged a contract from M K Shipping BV, Netherlands for supply of 6 Multipurpose Carrier Vessels. During the year 2006-07, they also commissioned the Wind Farm, consisting of 14 Wind Energy Generators with a total capacity of 15 MW and a total investment of Rs 867.770 Millions in the same place. The company successfully delivered four vessels during the year. In August 2006, the company bagged a contract from Reliance Industries Limited for construction of 6 vessels with the contract value of Rs 120 crore. In April 2007, the company acquired all the shipyard machinery and equipments of Swan Hunter (Typeside) Shipyard Limited and these equipments will be used in their existing yards as well as in their Greenfield projects. The company signed a contract with UP Offshore (Bahamas) Limited and Great Offshore Limited in April 2007, for the construction and supply of two Platform Supply Vessels and one Multipurpose Offsore Support Vessel respectively. In May 2007, Man Ferrostaal AG of Germany has ordered 2 nos Latest Generation Large PSVs with the company. In June 2007, the company bags Rs 260 crore order to build 150 tonnes bollard pull AHTSV from Norwegian Offshore Shipping I Limited of Norway. In October 2007, the company and Apeejay Shipping Limited have signed a 50:50 joint venture agreement for setting up a large modern shipbuilding yard along the Eastern Coast of the country. In November 2007, they bagged and order for 2 nos UT 755LN Platform Supply Vessel from Opielok Bereederungs GMBH and Co KG in Hamburg, Germany. The company is having the plan to construct a Green field modern shipyard at Usgaon near the Dabhol port in Ratnagiri.

 

CAPITAL:

 

During  the year Authorized Share Capital of the  Company  has been  increased  from Rs.400.000 Millions to Rs.500.000 Millions  consisting  of 5,00,00,000  Equity  Shares  (face value of Rs.10/-  each).  The  Issued, Subscribed  and  Paid  up Share Capital of the  Company  has  increased  from 2,75,69,300 shares to 2,89,39,300 shares (face value of Rs.10/- each) fully paid  up. During the year Company has issued 13,70,000 equity share  at  Rs.80/-  (face  value  Rs.10/-each)  each fully  paid  up  on  conversion  of convertible warrants Tranche - 1 issued vide resolution dated 15th May 2009 passed at EGM.

 

OPERATING RESULTS AND PROFITS:

 

During  the  year, the Company has successfully  delivered  5  (five)  vessels. The Company has posted turnover of Rs.1248.174 Millions,  an  increase  of about 35.14 % as compared to Rs. 9340.960 Millions  in  the  previous financial year. The Company has achieved profit after tax of  Rs.  1388.672 Millions  as against Rs. 1333.227 Millions in the previous  year,  an  upsurge of 4.16%.

 

FINANCE:

 

As  at  the end of financial year, the Company has  Debentures  worth  Rs.900.000 Millions, Cash and Export Credit Facility worth Rs.1903.732 Millions  and Term Loans worth Rs.12225.474 Millions by way of consortium finance,  where State Bank of India is the lead bank.

 

 

WIND POWER PROJECT:

 

The  Company  has  put  up  a Wind Farm,  consisting  of  14  Wind  Energy Generators  with  a total capacity of 15 MW at Village  Brhamanvel,  Taluka Sakri,  District  Dhule,  Maharashtra. The project  has  been  successfully commissioned  and  generated revenue of Rs.103.718 Millions during  the  year under report.

 

 

ACQUISITION OF SHARES IN GREAT OFFSHORE LIMITED:

 

During  the year under report the company acting in concert with  its  two subsidiary companies namely Natural Power Ventures Private Limited and  Dhanshree Properties  Private Limited acquired shares in M/s Great Offshore Limited The  total acquisition is 1,85,14,352 equity shares (49.73% of GOF's capital including shares acquired on 6th April 2010 ) and held by Natural Power Ventures Private Limited and Dhanshree Properties Private Limited (subsidiary companies) and is  very important and strategic both economically as well as commercially.

 

Consequent  upon  this acquisition, Mr. P.C. Kapoor and  Mr.  Vijay  Kumar, Managing  Directors  of  the Company have  been  appointed  as  Additional Directors  on  February 2, 2010 and Executive Directors on Board  of  Great Offshore  Limited w.e.f May 1, 2010. The company has made this investment as  a strategic Long Term Investment and to have a foot hold in all the sphere of the  offshore industry, further to it, this investment would generate  long term  benefit  to  the company and strengthen  the  company's  position  in international  market.  The  company  has  proficient  team  with  enormous experience  in various facets of the offshore industry, which give an  edge over  competitors.  They have number of synergies between the  two  companies which would enhance the value for the stakeholders of both the companies.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS:

 

I. INDUSTRY STRUCTURE, DEVELOPMENT AND OUTLOOK:

 

(i) World Shipbuilding Scenario:

 

The economic downturn which started in CY 2008 primarily, in the  developed  economies continued during the year. For the ship building industry FY 2010  globally was a year of few orders and order cancellations. Companies across the  globe  including  South  Korea,  China  and  Japan  witnessed  adverse conditions  during the year as a result of the financial crunch across  all segments  viz,  Bulk carriers, containers and offshore  vessels.  In  2009, annual  worldwide orders for new vessels tallied only 33 million DWT,  down from  96.2  million in 2008, which was the lowest in  nearly  two  decades. Nevertheless,  Indian ship building industry was relatively hedged  against this  downturn  due to inherent strengths like few  speculative  orders  in their  order  book  and domestic demand from  the  Defence  sector.  Indian companies   were  hit  by  european  crisis  which  led  to  a  few   order cancellations.

 

Looking  ahead,  although the overall downturn in the economy may  lead  to volumes of lower seaborne trade over the near term, on the positive  front, long term trade is likely to witness an increase which will in turn  result in  increased  sea  borne  trade. The  Shipbuilding  Industry-  Riding  the Economic Cycle Global Shipbuilding industry witnessed a cyclical trough  in CY  2009  due  decline  in  sea-borne  trade.  This  has  also  created  an overcapacity of ships globally ultimately affecting the performance of  the shipbuilding  industry  during the year. Market reports indicate  that  the global  shipbuilding orderbook declined from 367.2 mn GT at the end  of  CY 2008 to 303.5 mn GT at the end of 2009 primarily led by the slow growth  of new-build  orders aggregating 18.2 mn GT during CY09 as against 90.7 mn  GT during CY08.

 

However,  vessel  deliveries were not affected, and they grew at  a  steady pace  with 75.7 mn GT of vessels delivered during CY09 compared to 64.2  mn GT of deliveries during CY08. The year saw scrapping of vessels in the  dry bulk  vessel  and container segment. Vessel prices dipped  20-30%  however; this  did  not  help the dwindling  global  shipbuilding  orderbook.  Major shipbuilding  nations  such as S. Korea, China and Japan were hurt  by  the financial crunch thereby requiring governments to take corrective  measures in  terms  of  restructuring  of yards facing  financial  crisis  and  also offering  monetary  and  non-monetary incentives to  boost  the  industry's prospects. However, the Asian shipbuilders continued to dominate the global orderbook accounting for 95.1% for the year. Once again the market share of the  S. Korean shipbuilders remained the highest at 37.0% in CY  2009.  The share  of  the  Chinese and Japanese shipbuilders stood at  36.1%  and  16.8% respectively.

 

(ii) Shipbuilding scenario in India:

 

The Indian shipbuilders occupied 5th rank globally accounting for 1.44%  of the  global orderbook with 2.2 mn CGT of vessels on order at the end of  CY 2009.  Indian  companies cater to the niche offshore  segment  constructing PSVs,  OSVs,  AHTs,  MPSVs etc. With expansion of  shipyards  to  construct bigger   vessels  including  bulk  carriers  and  containers   the   Indian shipbuilders  have successfully garnered such new-build orders. It is  also noteworthy   that  Indian  Companies  saw  no  major  instance   of   order cancellation  during  the  year  in comparison  to  the  other  Asia  peers including  S.  Korea and China, primarily as their  order  books  primarily comprised of non speculative orders, also majority of the orders that  have been  received are from repetitive clients. India is known to have  a  long coastline  and is known also for its maritime heritage. Around 95%  of  the foreign  trade is sea borne. The development of maritime  infrastructure  - ports,  shipbuilding,  and shipping, including inland water  transport,  is therefore  of  critical  importance to the progress of  the  economy.  This sector  also provides substantial employment in the organized  sector,  and acts  as  catalyst for rapid development of the hinterland as  well.  Lower labour costs, skilled man power etc. have spurred ship building growth over the  last  decade. The increased growth has largely  resulted  form  export orders,  the bulk of which have been in the small ship  segment  comprising Offshore and Platform Supply Vessels and Anchor Handling Tugs. The increase in export orders obtained by the Indian shipbuilding industry, despite  its shortcomings  clearly  indicates that in the long term, there  is  a  large potential market available Indian yards. Indian companies will also benefit from  Defence sector orders and Indian Coast Guard orders as these  sectors are  looking to award certain contracts to Indian ship  builders.  Domestic EandP orders are also expected to resume on the back of rising oil prices  as the government is keen on development of offshore gas and oil fields.

 

(iii) Bharati's stance on changing sector dynamics:

 

Bharati  has  been  on  a  continuous growth  path  for  the  last  decade. Increasing  turnover and sustained profitability has been the  strategy  of the  company. Bharati strives to achieve balanced growth by evaluating  all the  business opportunities and seeking the best option from the  available opportunities. With ready technology and upbeat infrastructure the  company is well placed to allay the effects of the global economic upheaval as  the

industry   is  looking  forward  to  fresh  investments  in  the   offshore segment. Bharati is on track with its expansion plans to build capacity  to serve its current clients in a better quality and add newer clients.  Phase one of the Dabhol green field project is nearing completion, while capex is also  being incurred at the Mangalore yard. The capacity expansion  at  the green  field  yards  is  now reaping benefits  as  Bharati  is  efficiently utilising  all  its yards to construct vessels for its customers.  A  brief about Bharati's diversified yards is as under:

 

Ratnagiri:

 

This  is  the  first yard owned by the company and  is  located  closer  to Mumbai.  The  yard  has  been modernized  and  various  new  features  were installed in the yard. The yard has the following equipments:

 

1. Sheltered lagoon slightly away from the open sea.

 

2.  Modern  machineries  including  automatic  welding,   blasting/painting machines, CNC Plasma cutting machines, Hydraulic pipe bending machines

 

3. Ship-lift faciliy having 16,000 tonnes lifting capacity

 

4.  The  yard  is  International Ship and  Port  Facility  Security  (ISPS) certified.

 

Ghodbunder: 

 

This  yard is located near Mumbai and spreads over 12 acres of land.  Major work  carried  out here are quality assuarance and control  procedures  for steel fabrication, pre-outfitting and major piping work.

 

1. Four (4) slipways suitable for constructing hulls upto 125m length.

 

2.  Machineries  include mobile cranes, CAN Plasma cutting  machine,  panel line fabrication and welding machines etc.

 

Kolkatta:

 

Spread over 7 acres of land in the east coast of India this yard can  build vessels upto 125m in length and 22m in width.

 

1. Dry dock facilities

 

2.  Two  Gantry  cranes of 40 tonnes each,  CNC  steel  cutting/preparation machines, welding machines

 

Goa:

 

Spread over 2.5 acres of land, the yard belongs to Pinky Shipyard Private Limited, a subsidiary of Bharati.

 

1. Vessels upto 5,000 DWT and upto 140 m can be constructed in this yard.

 

2. Major machines include side slipping facility, CNC Plasma steel  cutting and  preparation machines, automatic blasting and painting machines,  Panel line fabrication, profile bending machine, rollers for plate  straightening etc.

 

 

Dabhol:

 

This  Greenfield project of Bharati is spread over 300 acres  near  village Usgaon (port Dabhol). The yard is designed by First Marine International of U.K. Apart from vessel construction, Bharati expects to carry out its  ship

repair business in the Dabhol yard.

 

1. Facility to construct vessels upto 1,00,000 DWT, including Jack Up Rigs, large cargo vessels etc.

 

2.  Phase  1 of the yard complete with the  installation  of  sophisticated equipments including 1200 tonnes Hugh Smith Hydraulic Bulkhead Flange Press Machine with cranes, from Swan Hunter Shipyard, U.K.

 

3. CNC Plasma Messer Grieshiem 4 head and Esab Hancommander 6 head  Profile Cutting Machines for precision cutting of steel plates.

 

4.  Other  automatic machineries like Twin Head Burny CNC  profile  cutting machines,  Hydraulic  Guillotine cutting machines, HGG CNC  Pipe  profiling machiners, CNC Robot operated profiling machines etc.

 

5.  Two cranes with 180T lifting capacity, Wenzlaff Panel Line  system  and conveyor assembly

 

6.  Floating  Dry  dock  has  been shifted  from  Swan  Hunter  to  Dabhol. Mangalore:  This  yard is situated on the banks of river Gurpur.  Post  the entire capex the yard will have a capacity to build upto 60,000 DWT.

 

Currently the company is only incurring essential capex on its yards, as they are closely monitoring the global macroeconomic trends. Although, there has been  some encouraging news from the offshore sector, they  will  re-evaluate the  capex plans for the Greenfield yards based on further  inquiries  from the  customers. Nonetheless, they are well equipped to ride the next boom  in the shipping sector.

 

 

(iv) The Company Strategy:

 

Bharati  Shipyard is one of the leading ship builders in India. Decades  of experience, knowledge and work quality has propelled Bharati in the premium league of world class ship building and marine services providing  company.

The Company reiterates its commitment to quality and customer  satisfaction and to sustain the same over the longer term Bharati works on the following business strategy:

 

a)  Retain  its  position  as a leading shipbuilder  in  the  domestic  and international  terrain  Bharati's current order book has export  orders  in excess  of  60%  of the total order book. Bharati has created  a  name  for itself  in the offshore segment vessel construction. The company  endeavors to  continue  its foray into export markets by targeting customers  in  the international  domain.  The  quality speaks of itself  as  they  have  bagged several  repeat orders from the existing customers. In the domestic  market Bharati  aims  to  be the Numero Uno ship builder on the  strength  of  its specialised knowledge, skillful talent pool and vast experience.

 

b) To construct complex vessels and move up the value chain:

 

It has  been a  constant endeavour at  Bharati  to  upgrade  the  product portfolio and cater to broad base customers. The first ever Jack up rig by any Indian company is being built by us in the Dabhol yard. The company is focussed on the offshore segment vessels; with resurgence in E and P demand the E and P players are expected to start their capital spending over  the  medium term.  Sophisticated  equipment  for vessel construction  and  higher  yard capacity  at the Greenfield yards has given Bharati an edge over its  peers to  construct  high precision vessels used in the  offshore  segment.  Thus Bharati Shipyard aims at upgrading its product portfolio and moving up  the value  chain.  High Precision offshore vessel construction  provides  high margin generating business which Bharati is eager to pursue.

 

c) To pursue domestic orders and defense orders:

 

Subject has excelled in building offshore vessels, bulk carriers etc. They are mindful of the immense opportunities that will spur in  India. India  is poised for a balanced growth over the medium term.  According  to the  Reserve Bank of India (RBI), Indian GDP forecast for FY  2010-2011  is 8.5%.  GDP  expansion will result in increased trade  activities.  Thus  they believe  that domestic demand for cargo vessels and offshore  vessels  will also increase with an increase in GDP.

 

Energy  security  has  become a primary objective for  the  government;  they believe this will result in higher spending in the E and P sector by the public companies. This will give rise to domestic offshore vessel demand.  Bharati Shipyard is also pursuing Defense market and Indian Coast Guard which has a plethora  of  opportunities for domestic ship builders. According  to  news sources  the Indian defense market is pegged at approximately US$  1.8  bn. Bharati Shipyard has in the past built vessels for the Indian Coast  Guard. The  company  has tie-ups with Rolls Royce to build ships  for  the  Indian defense  sector. They believe they are well equipped to serve  the  prestigious Defence segment of the country.

 

d) Building energy efficient vessels:

 

Bharati Shipyard has increased its offerings to the lucrative energy market with a newly developed liquefied natural gas (LNG)- powered ro-ro  vessel. For  Bharati,  as a leading shipbuilder for the offshore sector,  the  next step  would  be  to  design tugs and offshore vessels  powered  by LNG. LNG propelled vessels offer advantages such as substantial gains in  terms  of reduced maintenance, savings on fuel cost and low emissions and increase in comfort  levels.  As most of world fleet and Indian fleet are  made  up  of single engine-run ships, the advantage of going for LNG driven vessels with this concept are huge.

 

II. Opportunities:

 

Post  the  economic  recession experienced over the last 12  to  18  months economic  growth  is  recovering  at  a  gradual  pace.  According  to  the International  Monetary Fund (IMF) the world GDP declined 1.1% y-o-y in  CY 2009.  The IMF forecasts a y-o-y increase of 3.1% in CY 2010 and a  further 4.2%  y-o-y growth in global GDP. The increase in world trade will lead  to this  increase  in  GDP.  Increasing trade will lead to  demand  for  newer vessels  in the coming years. Due to environmental regulations  replacement demand is also expected to trigger new vessel demand.

 

i. Resurgence in E and P spending:

 

Energy  Security  has become a priority agenda for governments  across  the globe.  CY 2009 witness a drastic decline in EandP spending activity  due  to falling  crude prices. However, the prices have stabilised in  the  current months.  The crude prices have achieved stability in the range of US$70  to US$80.  This  price  range provides an incentive to the  EandP  companies  to engage in EandP spending.

 

News  reports suggest that the spending will increase 11% y-o-y in CY  2010 with a further 8% y-o-y increase in CY 2011. Spending will primarily be  by National Oil Companies across the world to secure energy resources for  the countries.  Increased spending will boost new offshore vessel  construction including  Rigs,  FPSOs etc. Thus we expect resurgence in  offshore  vessel demand due to stability in crude oil prices.

 

ii. Stringent drilling regulations and International Maritime Organisation:

 

Tighter drilling rules may support a revival in offshore orders, which  has begun  with the pickup in the global economy and a doubling of  oil  prices from  last year's low to more than US$70 a barrel. About US$167 billion  is

expected  to be spent in the deepwater sector through 2015.  These  numbers stem  potential  orders  for ship building  companies  worldwide.  Further, MARPOL  (Marine  Pollution  Regulation) contains  requirements  to  prevent pollution that may be caused both accidentally and in the course of routine operations.  MARPOL  concerns the prevention of pollution  from  oil,  bulk chemicals, dangerous goods, sewage, garbage and atmospheric pollution,  and includes provisions such as those which require certain oil tankers to have double  hulls. Accordingly, the regulation of IMO has mandated  replacement of the single hull tankers with double hull tankers by 2015.

 

iii. Growth in the world trade:

 

World-trade has grown significantly with the growth in global GDP over  the past decade. Looking forward, as the global economy gradually comes out  of the  financial crisis; there will be higher trade  activities.  Substantial demand from China for bulk goods more than overcame the global  contraction in  demand.  Emerging  economies will trigger the  demand  for  new  build. Increasing infrastructure and construction activities is driving demand for steel. Energy demand is driving demand for Oil and Coal.

 

This  will also lead to demand for new-builds, further fueled by  emergence of specialized categories like LNG carriers.

 

V. Financial Overview:

 

i. Turnover:

 

During  the  year,  turnover  has increased 35.41%  in  comparison  to  the previous year to Rs. 12648.174 Millions as against Rs. 9340.960 Millions in the previous year. The surge in the topline is attributable to execution at the Greenfield yards of the company. The capital expansion over the past  years has  yielded benefits in terms of higher and efficient utilization  of  the additional  capacities  created by the Company. Approximately  65%  of  the current order book comprises of export orders.

 

ii. Subsidy:

 

During  the year the company has booked subsidy of Rs. 836.180 Millions.  The company books subsidy when the vessels are nearing to completion i.e.  when the vessel is more than 70% complete. The increase in subsidy is consequent to various vessels nearing the completion stage.

 

 

TRADE REFERENCE:

 

·         Qatar Shipping Company

·         Cyprus Ports Authority

·         Great Offshore Limited

 

 

CONTINGENT LIABILITIES NOT PROVIDED IN RESPECT OF:

 

Particulars

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

 

 

 

Claim made against company not acknowledged as debts

93.183

93.183

Tax/ Duties that may arise in respect of which appeals are pending

15.500

15.500

Letter of Credit outstanding

1647.667

2021.981

Liabilities arising out of unexecuted Contract (Net of Advances)

4850.000

5037.000

 

 

 

Total

 

6606.350

7167.664

 

 

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH 2011

 

(RS. IN MILLIONS)

 

Particulars

Standalone

31.03.2011

(Audited)

 

 

1. a) Net Sales/ Income From operations

13682.269

b) Subsidy

2107.817

c) Other Income

21.625

Total

15811.711

 

 

2. Total Expenditure

 

a) Consumption of Materials and Stores

7525.099

b) Staff Cost

1760.541

c) Depreciation

215.077

d) Other Expenditure

1854.569

Total

11355.286

 

 

3. Profit from Operations before Other Income, Interest

4456.425

4. Other Income

1.738

5. Profit before Interest and Exceptional items

4458.163

6. Interest and Financial charges

2663.263

7. Profit after Interest but before Exceptional items

1794.900

8. Exceptional items

--

9. Profit /Loss from Ordinary activities before tax

1794.900

 

 

10. Tax Expense

 

Provision for Current Tax

462.918

Provision for Deferred Tax

133.302

 

 

Tax adjustment for earlier years

64.160

 

 

11. Net Profit/Loss before extraordinary items

1134.520

12. Extra ordinary items

--

13. Net Profit/Loss for the period

1134.520

14. Paid up Equity Share Capital

(Face value Rs.10/- each)

303.093

15. Reserve excluding revaluation reserves

9201.708

 

 

16. Basic EPS (Rs.) (Quarter – not annualized)

38.64

Diluted EPS (Rs.) (Quarter – not annualized)

40.82

 

 

17. Aggregate of Public shareholding

 

No. of Shares

16,831,795

Percentage of Shareholding

55.53%

 

 

18. Promoter and promoter group share holding

 

a) Pledged/ Encumbered

 

- No. of Shares

3,000,000

- Percentage of shares ( as a % of the total shareholdings of promoter and promoter group)

22.26%

- Percentage of shareholding (as a % of ht total share capital of company)

9.90%

 

 

b) Non- encumbered

 

- No. of Shares

10,477,505

- Percentage of shares ( as a % of the total shareholdings of promoter and promoter group)

77.74%

- Percentage of shareholding (as a % of ht total share capital of company)

34.57%

 

 

 

(RS. IN MILLIONS)

 

Particulars

YEAR ENDED

31.03.2011

(Audited)

 

 

Shareholders Funs:

 

a) Capital

578.786

b) Reserve and Surplus

9240.789

 

 

Loan Funds

35058.378

 

 

TOTAL

44877.953

 

 

Fixed Assets (Including Capital Work – In Progress)

14096.292

 

 

Investments

123.136

 

 

CURRENT ASSETS, LOANS AND ADVANCES

 

Inventories

19079.607

Sundry Debtors

5710.741

Cash and Bank Balance

1831.486

Other Current Assets

--

Loans and Advances

15649.772

 

 

Less: Current Liabilities and Provision

 

Liabilities

8810.027

Provisions

2250.649

Deferred Tax Liabilities

552.404

 

 

Miscellaneous Expenditure (Not Written off or adjusted)

--

 

 

Profit and Loss Account

--

 

 

TOTAL

44877.953

 

 

FIXED ASSETS

 

Ř       Land

Ř       Building

Ř       Plant and machinery

Ř       Dredger

Ř       Furniture and fittings

Ř       Vehicles

Ř       Computers

Ř       Wind Mill

Ř       Office Equipments

 

 

WEBSITE DETAILS ARE ATTACHED HEREWITH

 

HISTORY:

 

The voyage at company began in 1973 with a small shipbuilding facility in Ratnagiri. It started building small barges and fishing vessels and trawlers. But the vision of its two promoters was not to confine to small vessel building but it was a humble beginning of their dreams to become of the leading private sector shipyards in India. Since then there has been no looking back.

 

Over the years Bharati has expanded the capacity, capability and product range of its vessels manifold. The Ratnagiri shipyard, started as a small drop in the ocean has grown several times during the last 30 years, is today once of the most advanced shipyards of the company. The yard is now builing shphistticated vessels required for the offshore industry including OSV’s, MSV’s, PSV’s AHTS’s etc.

 

The quality size and the level of sophistication of the vessels built by Bharati has also grown manifold. Now it is building one of the most sophisticated and technologically advanced Jack-up Drill Rigs. Apart from this, Bharati is also building vessels required for the offshore industry which are technically far superior and perform under stringent conditions. Today, Bharati is building Offshore Supply Vessels (OSVs), Anchor Handling Tugs cum Supply Vessels (AHTS), Platform Supply Vessels (PSVs), Multi-purpose Support Vessels (MSVs), Ice Classed Vessels, etc.

 

Thus, what had started as a small stream way back in 1973 has today truly become an ocean encompassing many such small and large streams in its ambit.

 

Bharati's Ghudbunder yard supports the operations of Ratnagiri yard acting as a feeder yard. Besides, the Company has shipbuilding yards at Goa and Kolkatta engaged in shipbuilding and ship repairs.

 

The Company has also undertaken Greenfield expansions at Dabhol and Mangalore which are gonig to be one of the most technologically advanced yards of the country. Both the yards will be capable of building larger vessles upto Aframax and Handymax size respectively. The Dabhol yard is also capable of building Jack-up Drill Rigs.

 

Thus, over the years, what started as a small yard at Ratnagiri has now grown into a classy tenchnologically advanced yard at Ratnagiri, Ghodbunder, Goa, Kolkatta and the two Greenfield expansions for large vessels at Dabhol and Mangalore.

 

PROFILE:

 

Subejct is the foremost privately operated shipyard in terms of building facilities in India. BSL has earned its reputation by constructing a large array of specialized sophisticated vessels for diverse offshore, coastal and sea going marine market sectors. BSL product range includes highly maneuverable and power packed offshore vessels including AHTS, PSV’s, MSV’s of varying bollard pulls, Tractor and ASD tugs, state of the art dredgers, deep sea fishing vessels, cargo and container ships, tankers and Ro- Ro Vessels.

 

The synergy of operating from finve locations enables BSL to have a tremendous amount of flexibility and construct a large number of vessels in a limited time period. All shipyards are well equipped and boast of a total of 5 slipways / dry-docks. Wet basin, outfit berths serviced by cranes and large fabrication areas serviced by granty cranes and mobile cranes.

 

BSL is currently expanding and modernizing its production facilities with plans to expand nationally , in order to build larger vessels over 200 meters in length and oil exploration rigs, the first of which is already being constructed now at the shipyard in Dhabhol.

 

 

MANAGEMENT:

 

P. C. Kapoor

 

Mr. Prakash C. Kapoor aged 63 is a qualified Naval Architect (B. Tech Hons.) from IIT Kharagpur with a vast experience is Ship Design, Ship Construction and its Management. He was earlier associated with Mazgaon Dock Limited for over five years in the design and construction of various ships. In 1976, along with others, he jointly promoted Bharati Shipyard Limited He has experience of serving the company for over three decades and mainly looks after development and operations. His emphasis on quality and adhering to international manufacturing standards ensured that both the shipyards at Ratnagiri and Ghodbunder were set up and developed as per internationally accepted standards. He is a member of Confederation of Indian Industry (CII), Engineering Export Promotion Council (EEPC), All India Management Association (AIMA), Indian Economic Development and Research Association and an active committee member of the Institute of Naval Architects (India).

 

Vijay Kumar

 

Vijay Kumar aged 63 is a qualified Naval Architect (B. Tech Hons) from the IIT Kharagpur with a vast experience is Ship Design, Ship Construction and its Management. He started his career as a design and construction consultant with Mazagaon Dock Limited (MDL). After serving MDL for seven years, he along with Mr. PC Kapoor, co-promoted Bharati Shipyard Limited He possesses an experience of over three decades and is mainly involved with design and marketing the products of the company. His efforts have resulted into large export orders being executed by the company in the past. He also advises the company on quality standards and local and global business strategy. He is a member of various organization such as SNAME (Society of NavalArchitects and Marine Engineers), Governing Council of NSRDC (National Ship Design and Research Centre). He has been a member of technical and management committee of Indian Registrar of Ships (IRS). He is a member of eighth, ninth and tenth five-year plan panels for shipbuilding and repair industry. He is also currently secretary of Shipyard Association of India and convener of DGTD Ship Repair Group.

 

 

B L Patwardhan

 

Nominee director on the Board of Bharati Shipyard Limited – SBI

 

 

V. P Kamath

 

Independent Director on the Board of Bharati Shipyard Limited since on 28th January 2008

 

BUSINESS OVERVIEW:

 

Subject is a private sector Indian company engaged in design and construction of various types of sea going, coastal, harbour, inland crafts and vessels. Over the years, the company's product range has been upgraded from the simple inland cargo barges, through deep-sea trawlers and dredgers, to maneuverable and power packed ocean going, Tractor Tugs, Cargo Ships, Tankers and vessels required for offshore industry. From an output of only one small ship on inception, the company has achieved an output of six vessels in a year. The company's yards have constructed and delivered 49 maneuverable vessels till date. Of this, 34 vessels were delivered in the last seven years alone. Currently, 13 vessels are under construction, three of them to be delivered during September-November 2004.

 

The company also undertakes ship repair activities at its two shipyards.

 

Some of the ships that they can deliver with the present capacities are as follows:

 

Type of vessels

 

The various types of vessels manufactured by them are as follows:

·         Stern Tugs-Azimuthal/Conventional

·         Tractor Tugs-Azimuthal/ Cycloidal

·         Offshore Supply Vessels

·         Cargo Ships

·         Tankers

·         Dredgers

·         Special Purpose Vessels

·         Ferries/Passenger Vessels

 

Besides above, subject also manufactures Offshore Patrol Vessels, Container Ships and Chemical Carriers

 

The corporate management, engineering design, production planning, materials purchase, marketing and other key activities are carried out from corporate and registered offices based at Mumbai. The shipbuilding and ship repair activities are carried out at the company's shipyards located at Ratnagiri (Maharashtra), Ghodbunder (Thane, Maharashtra ). The company has an administrative office in Goa and hires out workshops in Goa whenever required. Presently, company is capable of fabricating and erecting up to 14 vessels of various sizes having maximum length up to 120 meters and breadth up to 18 meters simultaneously.

 

The company caters to demand from both domestic and foreign customers. The domestic customers include port trusts, inland water transport operators and leading corporate groups like Reliance Industries Limited, Great Eastern Shipping Corporation Limited (GESCO). On the export front, the company has supplied wide range of vessels to Europe, Middle East , Singapore , etc.

 

The company undertakes construction of ships to suit the customer's specific requirements. The company's shipyards have experience in the construction of large vessels and have successfully constructed and delivered many such vessels, some of which include:

 

·         Four 80-metre long mini-bulk carriers, two of which were exported to Singapore .

·         A 65-meter long Grab Hopper Dredger and 68-meter long multi-purpose vessel supplied to Kolkata Port Trust (KoPT).

·         100 metre-long Bitumen Tanker-cum-Ro Ro Vessel, with Bow Ramp supplied to Al Jabar, Abu Dhabi .

·         Two maneuverable tugs to Reliance Industries Limited (RIL).

·         Five maneuverable tugs to Qatar Shipping Company, Qatar .

·         One Wire Line Support Vessel to Halul Offshore Services Company, Doha.

·         One Diving Support Vessel to RIL.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]             INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]             Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]             Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]             Record on Financial Crime :

               Charges or conviction registered against subject:                                                                   None

 

5]             Records on Violation of Anti-Corruption Laws :

               Charges or investigation registered against subject:                                                                None

 

6]             Records on Int’l Anti-Money Laundering Laws/Standards :

               Charges or investigation registered against subject:                                                                None

 

7]             Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]             Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]             Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]           Press Report :

               No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.05

UK Pound

1

Rs.72.40

Euro

1

Rs.63.46

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--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

 

64

 

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

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

-

NB

                                       New Business

 

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.