MIRA
INFORM REPORT
|
Report Date : |
13.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
THE GREAT EASTERN SHIPPING COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Ocean House, 134/A, Dr. Annie Besant, Worli, Mumbai – 400018, |
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|
Country : |
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|
|
|
Financials (as
on) : |
31.03.2010 |
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|
|
|
Date of
Incorporation : |
03.08.1948 |
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|
|
|
Com. Reg. No.: |
006472 |
|
|
|
|
Paid-up Capital
: |
Rs.1522.900 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L35110MH1948PLC006472 |
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|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchange |
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|
|
|
Line of Business
: |
Engaged in Shipping
Business |
|
|
|
|
No. of Employees
: |
Information not
Divulged by management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
|
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 210000000 |
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|
|
|
Status : |
Very 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.
Financial position of the company appears to be sound. Fundamental are strong
and healthy. 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 any 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 DENIED BY
|
Name : |
Mr. Divesh Kapadia |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-22-66613212 |
|
Date : |
12.07.2011 |
LOCATIONS
|
Registered Office : |
Ocean House, 134/A, Dr. Annie Besant, Worli, Mumbai – 400018, |
|
Tel. No.: |
91-22-66613000/24922100/2200 |
|
Fax No.: |
91-22-24925900 |
|
E-Mail : |
|
|
Website : |
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|
|
|
|
The Great Eastern Institute of Maritime Studies : |
54-56 Tungarli Village, Next to Perfect Engineering Works, Mumbai-Pune
Express Highway, Lonavala – 410401, Maharashtra, India |
|
Tel. No.: |
91-2114-270166/67/68 / 22-66613239 |
|
|
|
|
Vasant J Sheth Memorial Foundation : |
Energy House, 81, D. N. Road, Mumbai – 400001, |
|
Tel. No.: |
91-22-66352283/84 |
|
Fax No.: |
91-22-22672989 |
DIRECTORS
AS ON 29.07.2010
|
Name : |
Mr. Kanaiyalal Maneklal Sheth |
|
Designation : |
Executive Chairman |
|
Address : |
Flat No.19-B, Manek, 11 L D Ruparel Marg, Mumbai – 400006, |
|
Date of Birth/Age : |
26.01.1932 |
|
Date of Appointment : |
03.04.1970 |
|
|
|
|
Name : |
Mr. Bharat Kanaiyalal Sheth |
|
Designation : |
Deputy Chairman and Managing Director |
|
Address : |
Flat No.19-B, Manek, 11 L D Ruparel Marg, Mumbai – 400006, |
|
Date of Birth/Age : |
18.01.1958 |
|
Date of Appointment : |
01.07.1989 |
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|
|
|
Name : |
Mr. Asha Vasant Sheth |
|
Designation : |
Director |
|
Address : |
Flat No.19-B, Manek, 11 L D Ruparel Marg, Mumbai – 400006, |
|
Date of Birth/Age : |
03.11.1933 |
|
Date of Appointment : |
17.06.1992 |
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|
|
|
Name : |
Mr. Cyrus Jamshed Guzder |
|
Designation : |
Director |
|
Address : |
D11, |
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Date of Birth/Age : |
17.09.1945 |
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Date of Appointment : |
14.03.2003 |
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|
|
|
Name : |
Mr. Keki Minoo Mistry |
|
Designation : |
Director |
|
Address : |
702/703, hasmukh Mansion, 7th Floor, 39, Chitrakar,
Dhurandhar Marg, 14th Road, Khar West, Mumbai – 400052,
Maharashtra, India |
|
Date of Birth/Age : |
07.11.1954 |
|
Date of Appointment : |
14.03.2003 |
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|
|
|
Name : |
Mr. Vineet Sohanlal Nayyar |
|
Designation : |
Director |
|
Address : |
5A, Old Friends Colony, |
|
Date of Birth/Age : |
30.11.1938 |
|
Date of Appointment : |
24.03.2004 |
|
|
|
|
Name : |
Mr. Berjis Minoo Desai |
|
Designation : |
Director |
|
Address : |
Yezerina II, 740/741, Dadar Parsi Colony, Road No.5, Dadar, Mumbai –
400014, |
|
Date of Birth/Age : |
02.08.1956 |
|
Date of Appointment : |
27.10.2006 |
|
|
|
|
Name : |
Mr. Vaman Kundapur Kamath |
|
Designation : |
Director |
|
Address : |
Tower A-293, Kalpataru Horizon S K Ahire Marg, Worli, Mumbai – 400018,
|
|
Date of Birth/Age : |
02.12.1947 |
|
Date of Appointment : |
22.05.2010 |
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|
|
|
Name : |
Mr. |
|
Designation : |
Executive Director |
|
Address : |
Flat No.12-B, Manek, 11 L D Ruparel Marg, Mumbai – 400006, |
|
Date of Birth/Age : |
02.04.1961 |
|
Date of Appointment : |
30.01.2006 |
|
|
|
|
Name : |
Mr. Rusi Nusserwanji Sethna |
|
Designation : |
Director |
|
Address : |
Sterling Apts, 38, G Deshmukh Marg, Mumbai – 400026, |
|
Date of Birth/Age : |
27.06.1974 |
|
Date of Appointment : |
29.07.2010 |
KEY EXECUTIVES
|
Name : |
Mr. Jayesh Madhusudan Trivedi |
|
Designation : |
Company Secretary |
|
Address : |
Akshay Girikunj III, Flat No.231, Paliram Road, Behind Brahmakumari Hospital,
Andheri West, Mumbai – 400058, Maharashtra, India |
|
Date of Birth/Age : |
08.11.1959 |
|
Date of Appointment : |
01.09.2001 |
|
|
|
|
Name : |
Mr. Divesh Kapadia |
|
Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
41,689,376 |
27.44 |
|
|
3,901,512 |
2.57 |
|
|
45,590,888 |
30.01 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
45,590,888 |
30.01 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
14,571,057 |
9.59 |
|
|
390,139 |
0.26 |
|
|
10,478 |
0.01 |
|
|
13,204,218 |
8.69 |
|
|
25,217,926 |
16.60 |
|
|
1,052 |
- |
|
|
1,052 |
- |
|
|
53,394,870 |
35.14 |
|
|
|
|
|
|
12,610,303 |
8.30 |
|
|
|
|
|
|
27,359,175 |
18.01 |
|
|
11,681,954 |
7.69 |
|
|
1,298,371 |
0.85 |
|
|
1,224 |
- |
|
|
1,297,087 |
0.85 |
|
|
60 |
- |
|
|
52,949,803 |
34.85 |
|
Total Public shareholding (B) |
106,344,673 |
69.99 |
|
Total (A)+(B) |
151,935,561 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
354,123 |
- |
|
|
354,123 |
- |
|
Total (A)+(B)+(C) |
152,289,684 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Multilateral & Bileteral Development
Financial InstitutionBUSINESS DETAILS
|
Line of Business : |
Engaged in
Shipping Business |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
Not divulged by the management |
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
-- |
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|
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Financials Institution : |
IL and FS Trust Company Limited, IL and FS Financial Centre Plot No.22
G Block Bandra Kurla Complex, Bandra East, Mumbai – 400051, |
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|
|
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Auditors : |
|
|
Name : |
Kalyaniwalla and Mistry Chartered Accountant |
|
Address : |
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Joint Venture : |
CGU Logistic Limited (Upto March 31, 2009) |
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Subsidiaries : |
Greatship (
|
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300000000 |
Equity Shares |
Rs.10/- each |
Rs.3000.000 Millions |
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000 Millions |
|
|
|
|
|
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
152708445 |
Equity Shares |
Rs.10/- each |
Rs.1527.100
Millions |
|
|
|
|
|
Subscribed:
|
No. of Shares |
Type |
Value |
Amount |
|
152292202 |
Equity Shares |
Rs.10/- each |
Rs.1522.900
Millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
152289684 |
Equity Shares |
Rs.10/- each |
Rs.1522.900
Millions |
|
|
|
|
|
Notes:
- Out of above, 74,39,858 (previous year 74,39,858) shares are allotted as fully paid-up pursuant to a contract without payment being received in cash.
- The Paid-up Equity Share Capital includes Rs.0.030 Million (previous year Rs.0.030 Million), on account of forfeited shares and is net of Calls in Arrears Rs.0.031 Million (previous year Rs.0.031 Million).
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 |
1522.900 |
1522.900 |
1522.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
160.200 |
|
|
3] Reserves & Surplus |
52188.300 |
47759.300 |
40051.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
53711.200 |
49282.200 |
41733.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
27188.900 |
30665.500 |
24845.800 |
|
|
2] Unsecured Loans |
9500.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
36688.900 |
30665.500 |
24845.800 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
90400.100 |
79947.700 |
66579.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
42718.300 |
47393.600 |
44743.600 |
|
|
Capital work-in-progress |
5537.500 |
6346.500 |
3582.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
32510.000 |
12509.600 |
9213.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
428.700
|
457.300 |
521.500 |
|
|
Sundry Debtors |
867.200
|
1301.800 |
1235.400 |
|
|
Cash & Bank Balances |
13211.200
|
18339.900 |
10885.600 |
|
|
Other Current Assets |
144.600
|
215.900 |
244.500 |
|
|
Loans & Advances |
629.200
|
1319.300 |
737.200 |
|
Total
Current Assets |
15280.900
|
21634.200 |
13624.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1638.100
|
2444.500 |
2032.600 |
|
|
Other Current Liabilities |
2366.100
|
5181.800 |
2211.500 |
|
|
Provisions |
1642.400
|
309.900 |
339.800 |
|
Total
Current Liabilities |
5646.600
|
7936.200 |
4583.900 |
|
|
Net Current Assets |
9634.300
|
13698.000 |
9040.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
90400.100 |
79947.700 |
66579.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from Operation |
20875.300 |
31723.300 |
30627.500 |
|
|
|
Other Income |
1578.600 |
1924.100 |
1407.600 |
|
|
|
TOTAL (A) |
22453.900 |
33647.400 |
32035.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating Expenses |
10370.400 |
12594.100 |
12034.700 |
|
|
|
Administrative and Other Expenses |
2869.600 |
1135.100 |
1068.800 |
|
|
|
Impairment Loss on Vessel |
0.000 |
700.000 |
0.000 |
|
|
|
TOTAL (B) |
13240.000 |
14429.200 |
13103.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9213.900 |
19218.200 |
18931.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1429.700 |
1536.400 |
1492.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7784.200 |
17681.800 |
17438.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3464.600 |
3484.900 |
3409.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4319.600 |
14196.900 |
14029.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
391.500 |
450.000 |
462.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
3928.100 |
13746.900 |
13567.300 |
|
|
|
|
|
|
|
|
|
Add |
PRIOR PERIOD
ADJUSTMENTS |
29.400 |
101.300 |
0.800 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
3957.500 |
13848.200 |
13568.100 |
|
|
|
|
|
|
|
|
|
Less |
TRANSFER TO TONNAGE
TAX RESERVE ACCOUNT UNDER SECTION 115VT OF THE INCOME-TAX ACT, 1961 |
400.000 |
2300.000 |
2250.000 |
|
|
|
|
|
|
|
|
|
Add |
TRANSFER FROM
RESERVE UNDER SECTION 33AC OF THE INCOME-TAX ACT, 1961 - 24000 |
0.000 |
0.000 |
2400.000 |
|
|
|
|
|
|
|
|
|
Add |
TRANSFER FROM
EXCHANGE FLUCTUATION RESERVE |
0.000 |
0.000 |
250.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
27117.700 |
18394.900 |
9099.100 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
400.000 |
1400.000 |
2000.000 |
|
|
|
Interim Dividend on Equity Shares |
0.000 |
1218.300 |
2284.100 |
|
|
|
Proposed
Dividend on Equity Shares |
1218.300 |
0.000 |
0.000 |
|
|
|
Tax on Dividend |
189.600 |
207.100 |
388.200 |
|
|
BALANCE CARRIED
TO THE B/S |
28867.300 |
27117.700 |
18394.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
|
|
|
|
|
|
- Basic |
25.99 |
90.94 |
89.11 |
|
|
|
- Diluted |
25.93 |
90.75 |
88.37 |
|
QUARTERLY
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
4169.900 |
3692.700 |
3626.000 |
3197.600 |
|
Total Expenditure |
2252.100 |
2248.900 |
1984.400 |
2933.600 |
|
PBIDT (Excl OI) |
1917.800 |
1443.800 |
1641.600 |
264.000 |
|
Other Income |
677.100 |
547.200 |
292.300 |
651.200 |
|
Operating Profit |
2594.900 |
1991.000 |
1933.900 |
915.200 |
|
Interest |
669.500 |
101.700 |
267.300 |
414.100 |
|
PBDT |
1925.400 |
1889.300 |
1666.600 |
501.100 |
|
Depreciation |
796.000 |
724.700 |
751.600 |
758.000 |
|
Profit Before Tax |
1129.400 |
1164.600 |
915.000 |
(256.900) |
|
Tax |
70.000 |
34.800 |
120.000 |
62.700 |
|
Profit After Tax |
1059.400 |
1129.800 |
795.000 |
(319.600) |
|
Net Profit |
1059.400 |
1129.800 |
795.000 |
(319.600) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
17.63
|
41.16 |
42.35 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.70
|
44.75 |
45.81 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.45
|
20.57 |
24.04 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.29 |
0.33 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.79
|
0.78 |
0.32 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.71
|
2.73 |
2.97 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors
Details:
|
Particulars
|
Rs.
In Millions 31.03.2010 |
Rs.
In Millions 31.03.2009 |
Rs.
In Millions 31.03.2008 |
|
Sundry Creditors |
|
|
|
|
Outstanding Dues to Micro, Medium and Small Enterprises |
0.000 |
0.000 |
0.000 |
|
Dues to Other Creditors |
1638.100
|
2444.500 |
2032.600 |
|
Total |
1638.100
|
2444.500 |
2032.600 |
Financial Performance:
The total income
for the year was recorded at Rs. 22453.900 millions as against Rs. 33647.400
millions in the previous year and a Net Profit after prior period adjustments
of Rs. 3957.500 millions as against Rs. 13848.200 millions in the previous
year.
Management Discussion
and Analysis
Company Performance
In FY 10, the Company recorded a total income of Rs.22453.900 millions (previous year Rs.33647.400 millions) and earned a PBIDT of Rs.9213.900 millions (previous year Rs.19918.200 millions).
Tanker Business
Market Trend and
Analysis
After enjoying several years of strong tanker markets, FY 10 turned out to be a turbulent year for tanker owners. During the first half of the year, earnings across various segments fell to levels wherein certain tanker owners were faced with the dilemma of operating their ships at or below the operating costs. This was particularly true in the clean and dirty products category.
Consequent to the collapse of global financial stability, in the first nine months of FY 10 average world oil demand dipped by about 0.45% or 0.4 million barrels per day over FY 09. This was largely led by the OECD nations where demand dropped by staggering 4% or 1.9 million barrels per day during the same period. To respond to the crisis, OPEC cut its average oil supply by about 5.4 % or 1.7 million barrels per day during FY 10.
The world tanker fleet increased to 441.40 million dwt at the end of the financial year, about 6% higher than the 416.90 million dwt at the beginning of FY 10. The fleet growth was more skewed in favour of the product tanker segment.
Floating storage provided some relief to the tanker owners in such a challenging environment. The main driver of this situation was an oversupplied market, with land-based crude oil storage largely full up and final demand for refined products well down. To tap the then prevailing contango (a term used when future prices are higher than 'spot' prices) in the spot and the future oil and oil products prices, it is believed that traders withdrew close to 150 tankers out of the active fleet to store approx. 55 million barrels of crude oil and 98 million barrels of clean products at the peak of this activity sometime in November 2009.
Amongst other factors that provided some respite to the
tanker owners were increased scrapping vis-ŕ-vis FY 09, slow steaming and lower
single hull tonnage utilization. Also, towards the end of the financial year,
increased crude oil imports by
Company Performance
The tanker business accounted for around 83% of the Company’s net revenues and 87% of the operating profits.
In FY 09-10, around 61% of the tanker earnings were derived from the period market. The crude tankers, inclusive of ‘spot’ and ‘period’, earned an average TCY of $22,300/day (previous year $41,200/day). The product carriers, inclusive of ‘spot’ and ‘period’, earned an average TCY of $18,200/day (previous year $23,700/day).
Tanker Fleet Changes
The tanker fleet of the Company stood at 32 tankers aggregating 2.48 million dwt, with an average age of 10.6 years (as of 31st March 2010) as against 31 tankers aggregating 2.3 million dwt with an average age of 9.9 years as on 31st March 2009.
During the year, the Company acquired one double hull 1996 built Medium Range Product tanker 'Jag Padma' in January 2010.
During the year, the Company also took delivery of the following new building vessels:
– Double hull Long Range One (LR1) Product tanker 'Jag Amisha' in April 2009
– Double hull Long Range One (LR1) Product tanker 'Jag Aparna' in June 2009
During the year, the Company delivered to the buyers 2007 built Medium Range Product tankers ‘Jag Panna’ in July 2009 and ‘Jag Payal’ in May 2009.
Subsequently the Company delivered to the buyers 1996 built Suezmax Crude tanker ‘Jag Layak’ in April 2010 which was contracted for sale in October 2009 and 1985 built General Purpose Product tanker 'Jag Palak' in May 2010.
During FY 08-09, the Company had placed orders for two Suezmax tankers, both of which were to be delivered in 2011. These have been replaced with three Very Large Crude Carrier tankers to be delivered in early 2012. The total tanker new building order-book for the Company now stands at three vessels.
Outlook for the
Tanker Market
Prospects for the tanker market in FY 2010-11 remain
uncertain. As per IEA, world oil demand in 2010 is expected to improve to 86.6 million
barrels per day, which is about 2% or 1.7 million barrels higher than that seen
in 2009. While
On the supply side, the global tanker orderbook currently stands at about 128.6 million dwt or 29.1% of the fleet at the end of March 2010, with about 50.40 million dwt scheduled for delivery between April and December 2010. However, last calendar year registered 25% slippage in tanker new building deliveries against that scheduled at the beginning of the year. Assuming similar slippage and complete single hull tonnage phase out in 2010, net tanker fleet is expected to grow at approx. 2-3% in the calendar year. Overall, barring seasonal volatility, average tanker earnings in FY 11 are expected to remain similar to those seen in FY 10.
Dry Bulk Business
Market Trend and
Analysis
After experiencing 5 years of a supercharged cycle (2003-08), the dry bulk business witnessed a slump not seen in a long time in the third quarter of FY 09. In an environment characterized by extreme global economic uncertainty and fear of an impending flood of new building deliveries, FY 10 performance was expected to be very poor. However, to the surprise of dry bulk ship owners, the year turned out to be much better than generally expected at the beginning. While on a yearly average basis, freight rates were around 40-50% lower than those seen in FY 09, they represented a significant improvement over the lows of December 2008.
Most dramatically in a year in which global steel production
fell by about 110 mt (Calendar 2009 over Calendar 2008), Chinese steel
production increased by 67 mt (13.5%). Consequently Chinese iron ore imports
rose by a massive 184 mt (41%) to reach 628 mt. As a result despite
unprecedented fall in imports by EU and
and coal prices were lower than domestic Chinese prices. The
surge in imports triggered congestion in ports with average waiting delays both
in loadports in
The dry bulk fleet stood at 475.60 million dwt as at the end of the financial year, about 12.3% higher than the 423.4 million dwt at the beginning of FY 10. Fleet growth would have been even higher had it not been for significant slippage (about 40% in calendar 2009) in new building deliveries and sizable scrapping of the older vessels.
Overall, FY 10 turned out to be better than expected year for the dry bulk market.
Company Performance
The dry bulk fleet contributed around 17% of the Company’s net revenues and 13% of the operating profits. The average TCY for dry bulk vessels, inclusive of ‘spot’ and ‘period’, was approximately $20,300/day as compared to $39,800/day in the previous year.
Dry Bulk Fleet
Changes
The dry bulk fleet stood at 6 vessels aggregating 0.41 million dwt, with an average age of 13.6 years (as of March 31, 2010) as against 8 vessels aggregating 0.50 million dwt with an average age of 13.3 years on March 31, 2009.
During the year, the Company delivered to the buyers the following vessels
1984 built Handymax bulk carrier ‘Jag Rani’ in May 2009 and 2000 built Handymax bulk carrier ‘Jag Reena’ in June 2009 The total bulker new building order-book for the Company now stands at five vessels.]
Outlook for the Dry
Bulk Market
Chinese imports policy and actual new building deliveries
will set the undertone for the dry bulk shipping market in short to medium
term. On the back of increased domestic demand backed by greener pastures
outside
Currently the dry bulk orderbook stands at 288.2 million dwt or 60.6% of the existing fleet with 109.5 million dwt scheduled for delivery in the balance of calendar year 2010. However, it must be pointed out that the above delivery schedule is fairly theoretical in nature as we have already seen 40% slippage in new building deliveries during the last calendar year.
Further extraneous factors such as trade patterns, congestion, natural calamities and weather changes can have their multiplier effect on dry bulk freight earnings.
Overall, it is expected that going forward new building deliveries are likely to cap any improvement in dry bulk earnings in the short to medium term and hence FY 11 earnings are likely to average lower than FY 10.
Contingent Liabilities:
Rs. In Millions
|
Sr. No |
Particulars |
31.03.2010 |
31.03.2009 |
|
(a) |
Guarantees given by banks counter guaranteed by the Company |
2362.700 |
2671.200 |
|
(b) |
Guarantees by bank given on behalf of a subsidiary company/joint
venture |
19.000 |
40.900 |
|
(c) |
Guarantees given to banks/shipyard on behalf of subsidiaries |
3489.800 |
12819.200 |
|
(d) |
Sales Tax demands under BST Act for the years 1995-96, 1996-97,
1997-98, 1998-99, 2001-02, against which the Company has preferred appeals |
74.600 |
74.600 |
|
(e) |
Lease Tax liability in respect of a matter decided against the
Company, against which the Company has filed a revision petition in the
Madras High Court |
174.000 |
174.000 |
|
(f) |
Possible obligation in respect of matters under arbitration/appeal |
5.900 |
5.900 |
|
(g) |
Demand from the Office of the Collector and District Magistrate, |
43.400 |
43.400 |
Form 8:
|
Corporate
identity number of the company |
L35110MH1948PLC006472 |
|
Name of the
company |
THE GREAT EASTERN
SHIPPING COMPANY LIMITED |
|
Address of the
registered office or of the principal place of business in |
Ocean House, 134/A, Dr. Annie Besant, Worli, Mumbai – 400018, |
|
This form is for |
Modification of
charge |
|
Type of charge |
Ship |
|
Particular of
charge holder |
DVB GROUP
MERCHANT BANK ( |
|
Nature of
instrument creating charge |
The Deed Of
Statutory First Priority Mortgage Dated March 25, 2010 On The Vessel Jag Pari
(Official No.1902 ) Together With The Deed Of Covenant Dated March 25, 2010
And Insurance Assignment Dated March 25, 2010 Executed In Favour Of Dvb Group
Merchant Bank (Asia) Limited (Hereinafter Referred To As 'The Bank'). |
|
Date of
instrument Creating the charge |
25/03/2010 |
|
Amount secured by
the charge |
Rs.1027.848
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest At A Rate Determined
By The Bank And In Accordance With The Loan Agreement Dated June 03, 2004 As
Amended From Time To Time (Hereinafter Referred To As 'The Loan Agreement') Terms of
Repayment The Loan Shall Be
Repaid By Fifteen (15) Consecutive Instalments, The First Fourteen (14)
Instalments To Be Repaid On Each Of The Repayment Dates And The Last
Instalment To Be Repaid Forty Seven (47) Days After The Fourteenth
Instalment. The Amount of
Each Instalment (Other Than The Last Instalment) Shall Be Us$988,695 and The Last Instalment Shall Be
Us$8,898,270. If The Loan Is
Not Drawn In Full The Amount of Repayment Instalment Shall Be Reduced
Proportionately. Margin Margin At 1.15
Per Cent (1.15%) Per Annum Extent and
Operation of the charge The Foreign Currency
Loan Of Us$22,740,000 Availed From The Bank Was Secured By A First Priority Statutory Mortgage On The
Vessel 'Jag Pratap' (Official No. 2619). |
|
Short particulars
of the property charged |
Jag Pari -
Official No 1902 Horse Power Of
The Engine - 8910 P.S Length - 162.47
Meters Breadth - 27.00
Meters Depth - 15.90
Meters Gross Tonnage -
20,302 Tons Reg.Tonnage -
8396 Tons Imo No- 8009492 |
|
Date of
instrument modifying the charge |
30/07/2007 |
|
Particulars of
the present modification |
Due To The
Shortfall In Security Value Pursuant To Clause 8.2.1 Of The Loan Agreement,
The Company And The Bank Have Entered Into A Third Supplemental Agreement
Dated March 25, 2010 To The Loan Agreement, Pursuant To Which, And As
Additional Security, The Company Mortgages And Charges By Way Of First
Priority Mortgage On The Vesssel 'Jag Pari' (Official No. 1902) To And In
Favour Of The Bank All Its Right, Title And Interest In And To The Vessel
'Jag Pari' And Insurances Thereof. |
FINANCIAL RESULTS
FOR THE YEAR ENDED 31.03.2011
Rs. In Millions
|
|
STANDALONE |
|
|
Particulars |
Quarter ended on 31.03.2011 (Unaudited) |
Quarter ended on 31.03.2011 (Audited) |
|
Income |
|
|
|
a) Income from Operations – Freight and Charter Hire |
3197.600 |
13630.900 |
|
b) Other Operating Income – Gain on sale of ships |
-- |
1055.300 |
|
Total |
3197.600 |
14686.200 |
|
Expenditure |
|
|
|
(a) Employees Cost (ashore and floating) |
532.900 |
2224.300 |
|
(b) Repairs and maintenance –fleet and rigs |
475.800 |
1643.300 |
|
(c) Direct operating expenses |
833.000 |
3576.800 |
|
(d) Other operating expenses |
79.400 |
349.200 |
|
(e) Hire of chartered ships/rigs |
19.900 |
157.600 |
|
(f) Loss/(Gain) on foreign currency transaction (net) |
(47.200) |
(106.700) |
|
(g) Administration and general expenses |
135.600 |
349.600 |
|
Total |
2029.400 |
8194.100 |
|
Operating Profit (PBIDT) |
1168.200 |
6492.100 |
|
Operating Profit (PBIDT) [excluding gain on sale of ships] |
1168.200 |
5436.800 |
|
Deprecation |
758.000 |
3030.300 |
|
Impairment on ships under construction |
857.000 |
857.000 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
(446.800) |
2604.800 |
|
Other Income |
604.000 |
1799.900 |
|
Profit/(Loss) before Interest and Exceptional items |
157.200 |
4404.700 |
|
Interest |
414.100 |
1452.600 |
|
Profit / (Loss) after interest before Exceptional items |
(256.900) |
2952.100 |
|
Exceptional Items |
- |
- |
|
Profit / (Loss) From
Ordinary activities before Tax |
(256.900) |
2952.100 |
|
Tax Expenses |
|
|
|
- Current Tax |
20.000 |
280.000 |
|
- Differed Tax |
- |
- |
|
- For Prior years |
42.700 |
7.500 |
|
Net Profit After Tax |
(319.600) |
2664.600 |
|
Minority Interest |
- |
- |
|
Net Profit |
(319.600) |
2664.600 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
1522.900 |
1522.900 |
|
Reserves (Excluding Revaluation Reserves) |
53517.700 |
53517.700 |
|
Earning Per Share
(in Rs.) |
|
|
|
-Basic |
(2.10) |
17.50 |
|
-Diluted |
(2.09) |
17.46 |
|
Public Share Holding |
|
|
|
- Number of Shares |
106650796 |
106650796 |
|
- Percentage of shareholding |
70.03 |
70.03 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
7000 |
7000 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
0.02 |
0.02 |
|
- Percentage of shares(as a % of the total share capital of the company) |
- |
- |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
45631888 |
45631888 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
99.98 |
99.98 |
|
- Percentage of Share (as a % of the total share capital of the company) |
29.97 |
29.97 |
Notes:
1. STATEMENT OF ASSETS AND LIABILITIES
Rs. In Millions
|
|
[Standalone]
Year ended on 31.03.2011 (Audited) |
|
Sources of Funds |
|
|
1 Shareholders Fund |
|
|
a) Capital |
1522.900 |
|
Application money – Equity Shares and
Warrants |
- |
|
Employee stock option outstanding |
- |
|
b) Reserves and Surplus |
53517.700 |
|
2 Minority Interest |
-- |
|
3 Loan Funds |
|
|
a) Secured |
23658.200 |
|
b) Unsecured |
12500.000 |
|
|
|
|
Total |
91198.800 |
|
|
|
|
Application of Funds |
|
|
1 Fixed Assets including CWIP and Capital
Advances |
53181.700 |
|
2 Investments |
33023.100 |
|
3 Deferred Tax Assets |
- |
|
4 Current Assets, Loans and Advances |
|
|
a) Inventories |
570.600 |
|
b) Sundry Debtors |
533.300 |
|
c) Cash and Bank Balances |
8194.700 |
|
d) Other Current Assets |
64.000 |
|
e) Loans and Advances |
341.400 |
|
f) Incomplete Voyages (net) |
53.500 |
|
|
9757.500 |
|
Less: Current Liabilities and Provision |
|
|
a) Current Liabilities |
3785.700 |
|
b) Provisions |
977.800 |
|
|
4763.500 |
|
Net Current Assets |
4994.000 |
|
|
|
|
Total |
91198.800 |
2. During the quarter,
the Company has made further investments in its subsidiary “Greatship (
The total
investment in “Greatship (
3. (a) The Board
of Directors has declared and paid an interim dividend of Rs. 3.50 per equity
share during the year. The outgo on this account was Rs. 621.500 millions
including dividend distribution tax.
(b) The Board of
Directors has proposed a final dividend of Rs. 4.50 per equity share. The outgo
on this account will be Rs. 762.800 millions including dividend distribution
tax.
4. During the
quarter:
- the Company took
delivery of –
- a Kamasarmax dry bulk carrier named “Jag
Aarati” (Year Built: 2011) of DWT 80324 MT
- a Supramax dry bulk carrier named “Jag
Rishi” (Year Built: 2011) of DWT 56719 MT
- the Subsidiary
Company –
- took delivery of -
-
350 feet jack up drilling rig “Greatdrill Chetna” (Year Built: 2009).
- a Platform / Remotely Operated Vehicle
Support Vessel named “Greatship Rashi” (Year Built: 2011) of DWT 3457 MT.
- has contracted
to –
- construct one Mobile Offshore Self
Elevating Drilling Rig – Letourneau 116 (E), for delivery in third quarter of
financial year 2012-13.
- construct one Platform / Remotely Operated
Vehicle Support Vessel for delivery in second quarter of financial year
2012-13. (Already informed in the previous quarter).
Subsequent to the
end of the quarter, the Company –
- has contracted
to sell three Very Large Crude Carriers under construction upon delivery from
the yard, for delivery to the buyers in the fourth quarter of financial year
2011-12 and first quarter of financial year 2012-13.
- took delivery of
newly built Kamsarmax dry bulk carrier named “Jag Aditi” ” (Year Built: 2011)
of DWT 80700 MT.
5. In accordance
with the Accounting Standard (AS) 28 “Impairment of Assets”, during the quarter
the Company has recognised an impairment loss of Rs. 857.000 millions in
respect of the three Very Large Crude Carriers under construction as mentioned
above. These assets have been impaired on account of the agreed sale price
being lower than the contracted purchase price. The said assets belong to the
Shipping Business and segment results of the Shipping Business are net of
impairment of Rs. 857.000 millions.
6. Previous period
figures have been re-grouped wherever necessary.
7. Number of
Investor Complaints at the beginning of the quarter were “Nil”, received during
the quarter were “2“, disposed off during the quarter were “2” and lying
unresolved at the end of the quarter were “Nil”
8. The above
results which have been subjected to an audit by the Statutory Auditors of the
Company were reviewed by the Audit Committee of the Board and approved by the
Board of Directors of the Company at their meetings held on 06.05.201 1 and
have been prepared in accordance with Clause 41 of the Listing Agreement.
Fixed Assets
- Plant and Machinery
- Land
- Ownership Flats and Building
- Vehicles
- Furniture, Fixtures and Office Equipments
Press Release:
08.07.2011
G E Shipping takes delivery of new building Supramax Dry
Bulk Carrier
The Great Eastern Shipping
Company Limited (G E Shipping) took delivery of its new building Supramax dry
bulk carrier “Jag Rani”. The vessel of about 57,000 dwt was built at COSCO
(Zhoushan)
With the induction
of “Jag Rani”, the Company’s fleet stands at 35 vessels, comprising 26 tankers
(9 crude carriers, 16 product tankers, 1 LPG carrier) and 9 (1 Capesize, 2
Kamsarmax, 1 Panamax, 4 Supramax, 1 Handymax) dry bulk carriers with an average
age of 8.6 years aggregating 2.61 mn dwt.
The Company’s
current new building order book comprises of 1 Kamsarmax dry bulk carrier
aggregating 0.08 mn dwt.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.44.69 |
|
|
1 |
Rs.70.87 |
|
Euro |
1 |
Rs.62.26 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
|
69 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.