MIRA INFORM
REPORT
|
Report Date : |
07.06.2011 |
Note : The correct name of the company is ‘ABG
Shipyard Limited’
IDENTIFICATION DETAILS
|
Name : |
ABG
SHIPYARD LIMITED |
|
|
|
|
Registered Office : |
Near |
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|
|
|
Country : |
|
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|
|
|
Financial (as on) : |
31.03.2010 |
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|
|
Date of Incorporation : |
15.03.1985 |
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|
|
|
Com. Reg. No.: |
04-007730 |
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Capital
Investment / Paid-up Capital : |
Rs.509.218 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L61200GJ1985PLC007730 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
SRTA01441G |
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|
Legal Form : |
A
Public Limited Liability Company. The Company’s Shares are Listed on the
Stock Exchange. |
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|
Line of Business : |
Manufacturers
of Tugs, Pusher Crafts and Building and Repairing of Ships. |
|
|
|
|
No. of Employees
: |
550
[50 in office / 500 in factory] Approximately |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
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 44800000 |
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|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and a 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 normal for 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.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DENIED BY
|
Name : |
Mr. Venaktesh |
|
Designation : |
Senior Manager Finance and Accounts |
|
Contact No.: |
91-22-66563000 |
|
Date : |
18.11.2010 |
LOCATIONS
|
Registered Office/ Factory : |
Near |
|
Tel. No.: |
91-261-2210645/ 2226480/ 2666480/ 2670458/ 2725191 |
|
Fax No.: |
91-261-3048243 |
|
E-Mail : |
|
|
Website : |
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|
Area : |
10
acres and 22 ghuntas |
|
Location : |
Owned |
|
|
|
|
Corporate Office : |
4th/
5th Floor, Bhupati Chambers, 13, |
|
Tel. No.: |
91-22-66563000 |
|
Fax No.: |
91-22-66223050 |
|
E-Mail : |
DIRECTORS
AS ON 30.09.2010
|
Name : |
Mr. Nainesh Jaisingh |
|
Designation : |
Nominee Director (Since 12.07.2005) |
|
|
|
|
Name : |
Mr. Shahzaad Dalal |
|
Designation : |
Nominee Director (Since 12.07.2005) |
|
|
|
|
Name : |
Mr. Rishi Agarwal |
|
Designation : |
Managing Director |
|
Date of Birth: |
03.09.1966 |
|
Qualification: |
MBA
(Finance) from |
|
Experience: |
Has
rich experience in Shipbuilding, Ship Repairing and Shipping. |
|
Date of Appointment: |
07.07.2005 |
|
Other Directorships : |
1.
ABG International Private Limited 2.
ABG Shipping Limited 3.
Onaway Industries Limited 4.
ABG Cement Limited 5.
ABG Heavy Industries Limited 6.
ABG Kolkata Container Terminal Private Limited 7.
ABG Cranes Private Limited 8.
ABG Power Private Limited 9.
ABG Projects and Services Limited ( 10.
ABG Kandla Container Terminal Limited 11.
ABG Engineering and Constructions Private Limited |
|
|
|
|
Name : |
Mr. Saket Agarwal |
|
Designation : |
Managing Director |
|
Date of Birth: |
07.05.1964 |
|
Qualification: |
Commerce Graduate |
|
Experience: |
Has rich experience in Marine business, port services, port
development and transportation |
|
Date of Appointment: |
18.08.2006 |
|
Other Directorships : |
1. ABG Heavy Industries Limited 2. ABG Kolkata Container Terminal Private Limited 3. ABG Cranes Private Limited 4. ABG Power Private Limited 5. ABG Projects and Services Limited ( 6. ABG Shipping Limited 7. Onaway Industries Limited 8. ABG Cement Limited 9. South West Port Limited 10. ABG Kandla Container Terminal Limited 11. Agbross Glass Works |
|
|
|
|
Committee positions held in other companies |
ABG Heavy Industries Limited- Audit Committee-Member |
|
|
|
|
Name : |
Mr. Ram Swaroop Nakra |
|
Designation : |
Managing Director
(Since 10.06.2008) |
|
|
|
|
Name : |
Mr. Ashok R Chitnis |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Arun Phatak |
|
Designation : |
Executive Director (Since 10.06.2008) |
KEY EXECUTIVES
|
Name : |
Mr. Manoj G Raichandani |
|
Designation : |
Company Secretary |
|
Name : |
Mr. Rajashekhar Reddy |
|
Designation: |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
375,000 |
0.74 |
|
|
30545594 |
59.99 |
|
|
30920594 |
60.72 |
|
|
-- |
-- |
|
Total shareholding of Promoter and Promoter Group (A) |
30920594 |
60.72 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
751680 |
1.48 |
|
|
57691 |
0.11 |
|
|
2541517 |
4.99 |
|
|
8732101 |
17.15 |
|
|
849267 |
1.67 |
|
|
12932256 |
25.40 |
|
|
|
|
|
|
3637570 |
7.14 |
|
|
|
|
|
|
2512173 |
4.93 |
|
|
617959 |
1.21 |
|
|
301249 |
0.59 |
|
|
159854 |
0.31 |
|
|
137295 |
0.27 |
|
|
4100 |
0.01 |
|
|
7068951 |
13.88 |
|
Total Public shareholding (B) |
20001207 |
39.28 |
|
Total (A)+(B) |
50,921,801 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
50,921,801 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionsBUSINESS DETAILS
|
Line of Business : |
Manufacturers
of Tugs, Pusher Crafts and Building and Repairing of Ships. |
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|
|
||||||||
|
Products : |
·
102M Side Loader/ Newsprint/ Container Ship ·
83.5M DP2 Diesel Electric Propulsion Diving
Support Vessel ·
26 Metre High Speed Aluminum Interceptor Vessel ·
47M 80 Ton Bollard Pull MPV ·
60.8M DP1 (Dynamic Positioing) Diving Support
Vessel ·
56 M Well Test/ DP2 Supply Vessel ·
50 T Azimuthing Stern Drive Bollard Pull Tug ·
60.8 M Anchor Handling Tug/Supply Vessel ·
49.5M Multiutility Vessel ·
77.9M 2250 DWT Mini Bulk Carrier ·
80M 2500 DWT Self Loading/ Unloading Bulk Cement
Carrier ·
4000 DWT Self Loading/ Unloading Bulk Cement
Carrier
|
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Imports : |
|
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|
Products : |
·
Raw Materials (Mainly Steel) ·
Capital Goods ·
Components Such As Engines, Anchors |
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Countries : |
·
·
·
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Terms : |
|
||||||||
|
Purchasing : |
L/C
and D/A terms |
PRODUCTION STATUS As on 31.03.2010
|
Particulars |
|
Unit |
Actual Production |
|
|
|
|
|
|
Ship and Barges |
|
Nos. |
13 |
|
|
|
Nos. |
-- |
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|
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|
GENERAL INFORMATION
|
Customers : |
v
v Oil and Natural Gas Corporation of India Limited |
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No. of Employees : |
550 [50
in office / 500 in factory] Approximately |
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Bankers : |
·
Bank of Nariman
Point, Mumbai – 400021, ·
Bank of ·
ICICI Bank Ahmedabad,
·
State Bank of Overseas
Branch, World Trade Centre, Cuffe Parade, Mumbai – 400005, ·
Bank of ·
IDBI Bank ·
Export-Import Bank of ·
Standard Chartered Bank ·
Oriental Bank of Commerce ·
Development Credit Bank ·
Indian Overseas Bank ·
Punjab National Bank ·
Andhra Bank |
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Facilities : |
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|
Note: The
above loans are secured by |
31.03.2010 (Rs.In
Millions |
31.03.2010 (Rs.
In Millions) |
|
Non Convertible Redeemable Debentures by First pari passu charge on
the company’s immovable and movable fixed assets of Dahej plant. |
1000.000 |
1000.000 |
|
Term Loan with interest, by pari-passu charge on the company’s immovable and movable assets of Dahej plant. |
8841.400 |
6190.000 |
|
Term Loan of 1720.000 millions by company’s assets both immovable and movable excluding fixed assets o Dahej plant |
1720.000 |
2150.000 |
|
Term Loan with interest of IFCI Rs.900.000 millions by pledge of certain investments held by the company |
900.000 |
0.000 |
|
Term Loan with interest of Andhra Bank by immovable property of the third party |
2000.000 |
0.000 |
|
Export Packing Credit and Cash Credit, by movable and
immovable assets of |
6408.200 |
4814.800 |
|
Other Short Term loans from banks by residual charge on current assets of the company |
1500.000 |
100.000 |
|
Hire Purchase Finance, by hypothecation of the individual
assets financed. |
4.800 |
3.500 |
2. 1000 NCD’s of RS. 100000 each, have been allotted on 16.12.2008 to a public financial institution, redeemable in three equal installments as under :
|
Date of redemption |
Amount (In Millions) |
|
15.12.2011 |
333.300 |
|
15.12.2012 |
333.300 |
|
15.12.2013 |
333.400 |
|
3. Of the due amount, repayable within one year are as follows : |
Amount (In Millions) |
|
Term loans from banks |
2693.300 |
|
Short term loans |
1515.600 |
|
Packing Credit / cash credit |
6413.000 |
|
Hire Purchase Finance |
4.800 |
|
Banking
Relations : |
---- |
|
|
|
|
Auditors : |
|
|
Name : |
Nisar and Kumar Chartered
Accountants |
|
Address : |
A-17,
|
|
Tel. No.: |
91-22-24948414 |
|
Fax No.: |
91-22-24965527 |
|
E-Mail : |
|
|
|
|
|
Subsidiaries : |
·
Eleventh Land Developers Private Limited ·
ABG Shipyard
Singapore Pte Limited ·
Abhishek Mercantile
Private Limited (Upto 20.03.2010) ·
Vipul Shipyard (Partnership Firm) |
|
|
|
|
Fellow Subsidiaries : |
·
ABG Cement Limited ·
PFS Shipping ( ·
ABG Foods Private Limited ·
ABG Acquafarm Private Limited ·
ABG Engineering and Construction Limited ·
Tirupati Landmark Private Limited ( Formerly
B. F. Engineering Private Limited ·
Waste Re Energy Private Limited ·
ABG
Energy Limited |
|
|
|
|
Associates : |
· ABG Power Private Limited · ABG Infralogistics Limited · Agbros Leasing and Finance Private Limited · Jarrow Finance and Trading Private Limited ·
ABG Infralogistics Limited ·
ABG Cranes Private Limited ·
PFS ( · ABG Motors Limited ·
ABG Energy ( · Aries Management Services Private Limited |
|
|
|
|
Holding Company: |
ABG
International Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100,000,000 |
Equity
Share |
Rs.10/-
each |
Rs.1000.000
millions |
|
|
|
|
|
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50,921,801 |
Equity
Shares |
Rs.10/- each |
Rs.509.218
millions |
|
|
|
|
|
Out of the above:
a) 2,47,00,000 (P.Y. 2,47,00,000) Equity
Shares of Rs.10/- each were issued as fully paid Bonus Shares out of Share
Premium and General Reserve.
b) 60,00,000 (P.Y. 60,00,000) Equity Shares
of Rs.10/- each were issued as fully paid Bonus Shares out of Revaluation
Reserve in 1994-95.
c) 2,85,98,598 (P.Y. 2,85,98,598) Equity
Shares of Rs.10/- each are held by the holding company ABG International
Private Limited.
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 |
509.200 |
509.200 |
509.200 |
|
|
2] Convertible Warrants |
0.000 |
318.700 |
318.700 |
|
|
3] Reserves and Surplus |
10710.800 |
8356.400 |
6835.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11220.000 |
9184.300 |
7663.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
22374.400 |
14258.400 |
4414.500 |
|
|
2] Unsecured Loans |
6600.000 |
3421.500 |
807.500 |
|
|
TOTAL BORROWING |
28974.400 |
17679.900 |
5222.000 |
|
|
DEFERRED TAX LIABILITIES |
3158.300 |
2220.000 |
1675.300 |
|
|
|
|
|
|
|
|
TOTAL |
43352.700 |
29084.200 |
14560.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5997.800 |
5117.000 |
1991.300 |
|
|
Capital work-in-progress |
13754.400 |
10063.500 |
3864.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
2407.600 |
126.800 |
58.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS and ADVANCES |
|
|
|
|
|
|
Inventories |
10060.700 |
12039.000 |
4077.600 |
|
|
Sundry Debtors |
704.000 |
394.600 |
83.900 |
|
|
Cash and Bank Balances |
278.600 |
478.400 |
867.700 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans and Advances |
19981.400 |
13798.500 |
11030.400 |
|
Total
Current Assets |
31624.700 |
26710.500 |
16059.600 |
|
|
Less : CURRENT
LIABILITIES and PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
9669.600 |
12571.600 |
|
|
|
Other Liabilities |
77.500 |
61.000 |
|
|
|
Provisions |
684.700 |
301.000 |
208.300 |
|
Total
Current Liabilities |
10431.800 |
12933.600 |
7413.000 |
|
|
Net Current Assets |
21192.900 |
13776.900 |
8646.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
43352.700 |
29084.200 |
14560.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
18076.700 |
14122.200 |
9668.400 |
|
|
|
Other Income |
441.200 |
72.500 |
74.000 |
|
|
|
TOTAL (A) |
18517.900 |
14194.700 |
9742.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
1494.000 |
1016.200 |
772.100 |
|
|
|
Personal Expenses |
481.000 |
294.300 |
294.200 |
|
|
|
General, Administration and Selling Expenses |
1213.900 |
1046.500 |
486.200 |
|
|
|
Raw Material Consumed |
11620.800 |
10538.700 |
6731.300 |
|
|
|
Loss on sale of Assets |
0.000 |
0.400 |
0.300 |
|
|
|
Increase/(Decrease) in Finished Goods |
(1457.800) |
(2085.100) |
(1500.000) |
|
|
|
TOTAL (B) |
13351.900 |
10811.000 |
6784.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5166.000 |
3383.700 |
2958.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1506.100 |
739.500 |
424.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3659.900 |
2644.200 |
2533.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
386.900 |
144.800 |
74.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3273.000 |
2499.400 |
2459.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
983.800 |
788.400 |
852.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2289.200 |
1711.000 |
1606.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5524.100 |
4204.000 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1200.000 |
850.000 |
NA |
|
|
|
Dividend |
203.700 |
101.800 |
NA |
|
|
|
Tax on Dividend |
34.600 |
17.300 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
3835.800 |
3234.900 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1652.800 |
1792.000 |
NA |
|
|
TOTAL EARNINGS |
1652.800 |
1792.000 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3740.100 |
3113.900 |
NA |
|
|
|
Capital Goods |
2324.600 |
497.700 |
NA |
|
|
|
Others |
6478.900 |
9415.900 |
NA |
|
|
TOTAL IMPORTS |
12543.600 |
13027.500 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
44.96 |
33.60 |
NA |
|
QUARTERLY RESULTS
Rs. In millions
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
30.12.2010 3rd Quarter |
31.03.2011 4th Quarter |
|
Net Sales |
4494.500 |
5554.800 |
5401.800 |
5319.800 |
|
Total Expenditure |
3249.600 |
4101.300 |
4010.200 |
4412.200 |
|
PBIDT (Excl OI) |
1244.900 |
1453.500 |
1391.600 |
907.600 |
|
Other Income |
25.000 |
5.200 |
0.300 |
9.000 |
|
Operating Profit |
1269.900 |
1458.700 |
1391.900 |
916.600 |
|
Interest |
420.700 |
401.200 |
402.400 |
170.400 |
|
Exceptional Items |
(137.500) |
(74.300) |
0.000 |
1.800 |
|
PBDT |
711.700 |
983.200 |
989.500 |
748.000 |
|
Depreciation |
136.600 |
140.600 |
173.700 |
179.400 |
|
Profit Before Tax |
575.100 |
842.600 |
815.800 |
568.600 |
|
Tax |
191.000 |
279.900 |
281.300 |
161.900 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
384.100 |
562.700 |
534.500 |
406.700 |
|
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 |
384.100 |
562.700 |
534.500 |
406.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total
Income |
(%) |
12.36 |
12.05 |
16.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
18.10 |
17.70 |
25.44 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.69 |
7.85 |
13.63 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29 |
0.27 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.51 |
3.33 |
1.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.03 |
2.07 |
2.17 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS AVAILABLE FOR
(Rs.
In millions)
|
PARTICULARS |
AS
ON 31.03.2010 |
AS
ON 31.03.2009 |
AS
ON 31.03.2008 |
|
Sundry Creditors for Goods and Expenses |
9669.600 |
12571.600 |
NA |
HISTORY:
Subject is the
OPERATIONS
During the year the Company has successfully delivered 14
vessels takcnj to the total up to 122 vessels delivered so far by the Company.
The Company has posted a turnover of Rs. 18517.900 millions an increase of about 30.45% as compared to Rs. 14194.700 millions in the previous Financial Year. The Company recorded a net profit of Rs. 228.92 Crores as against Rs.1711.000 millions in the corresponding previous financial year depicting a rise of 33.80%. The Company could achieve a rise in overall profitability through a judicious mix of strategies and cost control measures.
Installation of the Ship transfer system at the Dahej unit was completed during the year. The installation of the Ship lift system is in the advanced stage of completion. The Company has received all the necessary approvals for the construction of a 230 metre long jetty and construction of the same is in an advanced stage.
During the year under consideration, the Company had bagged
a prestigious order for
the construction of 3 cement carriers of 20,000 DWT each
from M/s. Associated Bulk Carriers Pte Limited,
OUTLOOK
Shipping continues to remain unchallenged as the world's most efficient means of transportation. With a long coastline of about 7517 km, spread on the western and eastern shelves of the mainland, shipping forms an important natural resource for country's trade. Approximately 95% of the country's trade by volume and 70% by value is moved through maritime transport. In view of its importance, the Indian Government has recognised the need to promote the quality of the shipping and ocean resources, ports, harbours and the new technologies to be developed in this emerging scenario.
The Ministry of Shipping has finalised a National Maritime Development Programe (NMDP) to implement specific programmes / schemes for the development of the port sector. The total investment involved for the projects identified under this programme for the period up to 2014-15 is Rs. 100339.000 millions. Out of this, Rs. 55804.000 millions is for the port sector and the balance is for shipping and inland water transport sectors.
NMDP has envisaged setting up of 2 international standard
shipyards in
Further, the Government has established Indian Maritime
University (IMU) in Chennai in the year 2008 with campuses at Chennai, Kolkata,
Mumbai and
Inland Waterways Authority of India is undertaking projects for making national waterways 1,2 and 3 (Ganga, Brahmaputra and West Coast canal) fully functional by providing navigational channel of 3m/2m/1.5m depth for
about 330 days in a year, in various stretches, fixed and floating terminals at selected locations and aids for day and night navigation with DGPS connectivity.
The Dry Baltic Index (BDI) which opened the year 2009 with
773 has reached 3063 in December 2009,
showing signs of global recovery. However, according to market
analysts the shipping markets are expected to remain
flat at these levels. The tanker segment of the shipping
market remained subdued due
to drastic fall in the demand for
petroleum products in the western countries. The one reason attributed
to the shipping market revival during
2009 is increased Chinese and Indian
demand for Iron ore and coal on the dry
side and in the tanker segment,
increase in demand from
SUBSIDY:
The Government of India had provided for a Shipbuilding Subsidy Scheme, for both export and domestic orders to all the Indian shipyards. The broad features of the scheme were as follows:
30% subsidy was payable for all export orders irrespective of size and type but limited to seagoing merchant vessels of and over 80 metres in length for domestic vessels.
Prices to be determined by the global tender in case of domestic orders.
In case of export orders obtained on price negotiation a 'Price Reasonableness Certificate' to be obtained from DG Shipping.
In case of Public Sector shipyards, subsidy is payable on stage payments received by the shipyard.
In case of Private Sector shipyards, subsidy is payable after the delivery of the vessel.
This Scheme had expired on August 14, 2007. The Government has issued modified guidelines dated 25th March 2009 for liquidation of the liability for the payment of subsidy for ongoing eligible shipbuilding contracts
entered by Central Public Sector shipyards up to 14th August 2007 and eligible shipbuilding contracts entered on 25th October 2002 and thereafter by Non-Central Public Sector shipyards and Private Sector shipyards up to
14th August 2007, to the shipyards who have applied to DG Shipping for Price Reasonableness Certificate on or before 14th August 2007. In order to give a boost to the ship building industry, the Government of India is considering reviving the subsidy scheme. The Company has received an amount of Rs. 654.900 millions towards subsidy in the financial year 2009-10.
SUBSIDIARY:
The Company has 2 subsidiaries i.e. Eleventh Land Developers Private Limited and ABG Shipyard Singapore Pte. Limited as at the end of financial year. The Company has sought an exemption under Sec. 212 of the Companies Act, 1956 from the requirement of attaching the Balance Sheet, Profit and Loss Account, etc of its subsidiaries to its accounts. Vide its order dated 13th May, 2010, the Ministry of Corporate Affairs has exempted from the requirement of Sec. 212 of the Companies Act, 1956 for Eleventh Land Developers Private Limited.
The Balance Sheet,
Profit and Loss Account etc. of ABG Shipyard
The Company undertakes that the annual accounts of the subsidiary Companies and the related detailed information will be made available to the members on request. Further, the annual accounts of the subsidiary
Companies will also be kept at the registered office of the Company and of its subsidiary for inspection by any member.
DIRECTORS:
Shri. Ashwani Kumar has been appointed as additional director of the Company w.e.f. 8th December 2009. Mr. Ashwani Kumar is a retired Chief Income Tax Commissioner. He would hold the position as additional director up to the date of ensuing Annual General Meeting of the Company. The Company has received a notice from a member under Sec. 257 of the Companies Act, 1956 signifying his intention to propose the appointment of Mr. Ashwani Kumar as Director of the Company. Considering the vast experience and skills in finance, management, taxation and industry, directors of the Company recommend his appointment for the approval.
In accordance with Section 255 and 256of the Companies Act, 1956 read with Article 190 of the Articles of Association of the Company, Shri. Rishi Agarwal and Shri. Saket Agarwal are liable to retire by rotation at
the ensuing Annual General Meeting and are eligible for re-appointment.
None of these directors is disqualified as per the provisions of Section 274 (1) (g) of the Companies Act, 1956, to be appointed/ re-appointed as directors of the Company.
The Directors recommend the re-appointment of Shri. Rishi Agarwal and Shri. Saket Agarwal as directors. The details of the Directors being recommended for re-appointment are contained in the accompanying notice of the forthcoming Annual General Meeting.
INDUSTRIAL RELATIONS
The Industrial relations at the manufacturing facilities of the Company have been cordial during the year. The Directors wish to place on record the commitment and involvement of the employees at all levels and look forward to their continued cooperation. The Industrial relations at the manufacturing facilities of the Company have been cordial during the year. The Directors wish to place on record the commitment and involvement of the employees at all levels and looks forward to their continued cooperation.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY OVERVIEW:
The shipbuilding industry has its own distinctive feature as compared to other industries. It is unique in a way that it has to sell first and construct later, unlike the auto industry or others, where one manufactures first and sells later. Further shipyards get orders only if they are credible (deliver quality ships on time) and it can be credible only after successfully executing consistently under international competition. The deliverables of the sector involves long gestation periods and requires high cost finances over a long period.
The western countries
have dominated the first three decades in
the post second world war era.
However, high labour costs in the yards of Europe and
these models with
large state-supported investments in this industry. The shift in shipbuilding activities, from
Europe to
are capitalizing on them.
The global economic recession and the decline in sea-borne trade led to over-capacity of ships globally ultimately affecting the performance of the shipbuilding industry during the year 2009. The global ship building order book declined from 367.2 millions GT as on December 31, 2008 to 303.5 millions GT as on December 31, 2009 primarily led by the slow growth of new-build orders aggregating 18.2 millions GT during 2009 as against 90.7 millions GT during 2008. The vessel deliveries however continued to grow at a steady pace with 75.7 millions GT of vessels delivered during 2009 compared to 64.2 millions GT of deliveries during 2008.
The Indian shipbuilders account for 1.44% of the global order book with 2.2 millions CGT of vessels on order as on December 31, 2009. The Indian shipbuilders specialise in the construction of offshore vessels. However, the expansion of shipyards to the extent of constructing bigger vessels such as dry bulk carriers has enabled the Indian shipbuilders to attract new-build orders in the said vessel segment. Importantly, the Indian yards reported no major instance of order cancellation during 2009 (except for one private sector shipyard) as compared to their peers in S. Korea and China, primarily owing to no speculative orders being placed with the Indian yards and majority of the orders being received from repetitive clients.
OPPORTUNITIES AND
THREATS:
With global shipping industry pitching for an unprecedented demand for new shipbuilding, a window of opportunity which was not available earlier, has been created for the Indian shipbuilding industry. The Indian shipbuilding industry had always been dogged by low capacity, poor productivity and lack of modernisation.
Thanks to the gradual shift of shipbuilding from Europe to
The Indian
shipbuilding industry is on a high growth trajectory
and is expected to grow at a compounded growth of 30%. Though
Nevertheless, the industry is still in its nascent stage and dependent on government support for subsidy. The industry is expected to become self sufficient in about 10 years time. It is clear from the above that India can grow in the shipbuilding sector in a healthy manner if shipbuilding is recognized as a strategic industry and if it can enjoy simple taxation policies with a fully empowered regulating body for quick decision-making.
The previous subsidy scheme had expired on 14th August 2007 and the industry has made a representation for the extension of the same which is under the consideration of the Government.
The ship building
industry is now witnessing a growth phase after a gap of almost
25 years. This is an opportunity for
FINANCIAL PERFORMANCE
WITH RESPECT TO OPERATIONAL PERFORMANCE
During the year, the Company has successfully delivered 14 vessels taking to the total up to 122 vessels delivered so far by the Company.
The Company has posted a turnover of Rs. 18517.900 millions, an increase of about 30.45% as compared to Rs. 14194.700 Millions in the previous Financial Year. The Company recorded a net profit of Rs. 2289.200 Millions as against Rs. 1711.000 Millions in the corresponding previous financial year depicting a rise of 33.80%.
The Company could achieve a rise in overall profitability through a judicious mix of strategies and cost control measures.
CONTINGENT
LIABILITY NOT PROVIDED FOR:
|
Particulars |
31.03.2009 (Rs.
In Millions) |
|
|
|
|
In respect of Performance/ Delivery
Guarantees given by banks to the buyers. |
777.900 |
|
Corporate guarantees to banks In Respect
Of Facilities Granted To Group Companies |
9938.100 |
|
Other bank guarantees to government authorities |
111.800 |
|
Claims against the company not acknowledged as debts |
3.400 |
FIXED
ASSETS:
- Free
- Other
Building
- Plant And
Machinery
- Furniture and
Fixtures
- Vehicles
- Computers
- Boats
- Software
WEBSITE DETAILS:
PROFILE:
Subject, the flagship company of
ABG group was incorporated in the year 1985 as Magdalla Shipyard Private Limited
with the main objects of carrying Shipbuilding and Ship Repair business. In a
span of 15 years from the year 1991, the company has achieved the status of the
largest private sector shipbuilding yard in India with satisfied customer base
all around the world. The registered office and the yard are situated at
The Shipyard has state of the art,
manufacturing facilities including a “Ship-lift Facility” with a lift capacity
of 4500 tons, side transfer facilities, CNC plasma cutting machine, Bending
rolls, Hydraulic press, Cold shearing machine, Frame bending machine and steel
processing machinery. The Shipyard also has blasting shop and fabrication shop
covered in 4 bays of 150 x 30 M each equipped with 20T EOT Cranes. The
manufacturing process is in line with world-class standards and the Yard is
certified by DNV for ISO 9001:2000.
During past decade, the Shipyard
has constructed and delivered One Hundred four(104) Vessels including
Specialized and Sophisticated vessels like Interceptor Boats, Self Loading and
Discharging Bulk Cement Carriers, Floating Cranes, Articouple Tugs and
Flotilla, Split Barges, Bulk Carriers, Newsprint Carriers, Offshore Supply
Vessels, Dynamic Positioning Ships, Anchor Handling Tug Supply Vessels,
Multi-purpose Support Vessel, Diving Support Vessels, etc. for leading
companies in India and abroad.
ABG Shipyard has successfully
delivered 2 Nos. Interceptor Boats (45 knots vessels) in Aluminium hull with
Water Jet Propulsion to the Indian Coast Guard, 2 x 4000 DWT Cement Carriers
for Cement Ambuja International, Mauritius, 4 x 50T Bollard Pull SRP Tugs for
Wijsmuller, Holland (An A.P.Moller and Co.). The most recent deliveries have
been 4 x 60.8M Anchor Handling Tugs / Supply Vessels and 1 x 42M Well Head
Maintenance Vessel (Aluminium Hull) for Halul Offshore, Doha, Qatar, 1 x 50M
Well Test / Supply Vessel and 1 x 56M Well Test / DPS-2 Vessel for Al Mansoori
Production Services, Abu Dhabi, 3 x 47M – 80T Multipurpose Vessel for Lamnalco
Group, Sharjah, 4 x Utility Vessel for Zamil Operation and Maintenance Company Limited,
1 No. 60.8M Diving Support Vessel – DP1 Halul Offshore Co., Doha are ready for
delivery and 1 No. 83.5M Dynamic Positioning – DP2 Type Vessel with Diesel
Electric Propulsion for Consolidated Contractors Construction Co., UAE.
The Yard has recently been awarded
an order for 2 Nos. 53M – 90T B. P. ASD Vessels from Lamnalco Group, UAE. They
have also received Orders for 1 No. 90M Pipe Lay Barge, 5 Nos. 61M Anchor
Handling Tug Supply Vessels and 1 No. 78M DPS-2 Diving Support Vessel from
Maridive, Egypt, 3 Nos. 94M Pollution Control Vessels for Indian Coast Guard,
4 Nos. Articoupled Barges for
Essar Shipping, 4 Nos. 63M Anchor Handling Tug Supply Vessels from Seatankers
Management Co. Limited, Norway and 1 No. 60.8M Offshore Supply / Supply Vessel
from VROON B. V., Netherlands. Subject is also proud of getting a prestigious
order for 500 passenger vessel from the Administration of Andaman and Nicobar
Administration, Port Blair, which is under construction presently.
The Yard has Multiple Building
Berths, 2 Dry-docks, 125 m x 22.5 m X 5.6 m Fitted with Computerised
Synchronous Shiplift Platform, of 4500 Tonnes Lifting Capacity and 155 m X 30 m
x 7.5 m, Graving Drydock served by 80-T Goliath Crane span 50 m, height 35 m.
and substantial cranage like NCK Rapier 150T Capacity, Tata P and H Make, 60-T
Capacity, HM Make, 50-T Capacity, PPM 80T Capacity. The “Shiplift Facility”
enables the yard to simultaneously build and repair many vessels and gives the
yard a tremendous logistical advantage and flexibility.
The Shipyard has executed many
prestigious Shipbuilding and Ship-repair contracts against stiff International
Competition for both Export and Domestic Markets. All these vessels have
performed very well, thus establishing its reputation for building and
delivering vessels of the best quality at competitive prices and delivery
periods. The Ship Repair Division has successfully repaired and refurbished
Dredgers, Ethylene Carriers, Bulk Carriers, Offshore Supply Vessels and Coast
Guard Vessels.
The path of progress from the
Shipyard’s pioneering work to its leading position today has been achieved by
the superior quality of its products and services, the high productivity of its
operations and the innovative spirit and integrity of its people.
They are now
setting-up a new shipyard with state of art manufacturing facilities including
Two (2) Nos. 400 Mtrs. long New building dry-docks allowing them to build all
kinds of vessels up to 120000 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.44.72 |
|
|
1 |
Rs.73.46 |
|
Euro |
1 |
Rs.65.47 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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.