MIRA INFORM REPORT

 

 

Report Date :

18.06.2011

 

IDENTIFICATION DETAILS

 

Name :

MERCATOR LINES LIMITED

 

 

Registered Office :

3rd Floor, Mittal Tower, B-Wing, Nariman Point, Mumbai-400021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

24.11.1983

 

 

Com. Reg. No.:

11-031418

 

 

Capital Investment / Paid-up Capital :

Rs.235.992 Millions

 

 

CIN No.:

[Company Identification No.]

L63090MH1983PLC031418

 

 

TAN No.:

[Tax Deduction and Collection Account No.]

MUMM23856A

 

 

PAN No.:

[Permanent Account No.]

AAACM5007A

 

 

Legal Form :

Public Limited Liability Company.  The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

The company engaged in three segment shipping, offshore and coal mining, trading, and logistics.

 

 

No. of Employees :

147 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (49)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 42158000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. There appears some losses being incurred by the company in the current year i.e. 2010-11. However, networth appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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.

 

INFORMATION DECLINED BY

 

Management non-cooperative

 

LOCATIONS

 

Registered Office :

3rd Floor, Mittal Tower, B-Wing, Nariman Point, Mumbai-400021, Maharashtra, India.

Tel. No.:

91-22-66373333/ 40373333

Fax No.:

91-22-66373344

E-Mail :

mercator@mercator.in

Website :

http://www.mllindia.com

http://www.mercator.in

 

 

DIRECTORS

 

As on 31.03.2010

 

Name :

Mr. H.K. Mittal

Designation :

Executive Chairman

 

 

Name :

Mr. Atul J. Agarwal

Designation :

Managing Director

 

 

Name :

Mr. Manohar Bidaye

Designation :

Independent and Non-executive Director

 

 

Name :

Mr. M. G. Ramkrishna

Designation :

Independent and Non-executive Director

 

 

Name :

Mr. Anil Khanna

Designation :

Independent and Non-executive Director

 

 

Name :

Mr. K. R. Bharat

Designation :

Independent and Non-executive Director

 

 

Name :

Mr. Kapil Garg

Designation :

Non Executive Director

 

 

KEY EXECUTIVES

 

Name :

Ms. Suchita Shirambekar

Designation :

Company Secretary

 

 

Audit Committee :

 

Name :

Mr. Anil Khanna

Designation :

Chairman

 

 

Name :

Mr. Manohar Bidaye

Designation :

Member

 

 

Name :

Mr. M. G. Ramkrishna

Designation :

Member

 

 

Shareholders’ Grievance Committee :

 

Name :

Mr. Manohar Bidaye

Designation :

Chairman

 

 

Name :

Mr. Anil Khanna

Designation :

Member

 

 

Name :

Mr. Atul J. Agarwal

Designation :

Member

 

 

Remuneration cum Selection Committee :

 

Name :

Mr. Manohar Bidaye

Designation :

Chairman

 

 

Name :

Mr. Anil Khanna

Designation :

Member

 

 

Name :

Mr. M. G. Ramkrishna

Designation :

Member

 

 

Expansion Committee :

 

Name :

Mr. H.K. Mittal

Designation :

Chairman

 

 

Name :

Mr. Atul J. Agarwal

Designation :

Member

 

 

Name :

Mr. Anil Khanna

Designation :

Member

 

 

Name :

Mr. K. R. Bharat

Designation :

Member

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

80,077,816

32.70

Bodies Corporate

18,406,250

7.52

Sub Total

98,484,066

40.22

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

98,484,066

40.22

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

7,961,664

3.25

Financial Institutions / Banks

2,135,190

0.87

Central Government / State Government(s)

1,000

-

Insurance Companies

2,000

-

Foreign Institutional Investors

43,994,012

17.96

Any Others (Specify)

-

-

Sub Total

54,093,866

22.09

(2) Non-Institutions

 

 

Bodies Corporate

16,682,744

6.81

Individuals

 

 

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

61,044,816

24.93

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

9,598,953

3.92

Any Others (Specify)

4,987,628

2.04

Clearing Members

1,426,667

0.58

Directors & their Relatives & Friends

496,195

0.20

Trusts

4,786

-

Foreign Nationals

1,450

-

Office Bearer

204,100

0.08

Non Resident Indians

2,854,430

1.17

Sub Total

92,314,141

37.70

Total Public shareholding (B)

146,408,007

59.78

Total (A)+(B)

244,892,073

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)

244,892,073

-

 

 

BUSINESS DETAILS

 

Line of Business :

The company engaged in three segment shipping, offshore and coal mining, trading, and logistics.

 

 

GENERAL INFORMATION

 

No. of Employees :

147 (Approximately)

 

 

Bankers :
  • State Bank of India
  • ICICI Bank
  • Axis Bank
  • HDFC Bank

 

 

Facilities :

Secured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

(A) Debenture

 

 

(A) Debentures

 

 

(1) 900 (900) 10.50 % (11.25% upto June 30, 2009) Non Convertible Secured Debentures of Rs.4,37,500/- (Rs.5,62,500/-) each, redeemable in 12 half yearly installments of 6.25% and last two of 12.50% of face value of Rs.10,00,000/- each commencing from 6 months after 1 year from the date of allotment i.e. June 30, 2004

Face Value Series VII A. There is a put/call option on 30th June every year.

393.750

506.250

(2) 1500 11.90 % Non Convertible Secured Debentures Series IXA of Rs.10,00,000/- each with the tenor of 10 years, redeemable in 3 yearly installments at the end of 8th , 9th and 10th year from the date of allotment.

There is call option at the end of 4th year from the date of allotment in the event this call option is not exercised by the issuer at the end of 4th year, the coupon on debenture would be increased to 12.35% p.a. payable half-yearly effective immediately thereafter, for the balance tenor.

1500.000

1500.000

(3) 2500 9.50 % Non Convertible Secured Debentures Series X of Rs.10,00,000/- each with the tenor of 5 years, redeemable in 3 yearly installments at the end of 3rd, 4th and 5th year from the date of allotment.

2500.000

0.000

(4) 1000 9.50 % Non Convertible Secured Debentures Series XI of Rs.10,00,000/- each with the tenor of 5 years, redeemable at the end of 5th year from the date of allotment.

1000.000

0.000

(B) Foreign Currency Loans from Banks

 

 

(1) External Commercial Borrowings

1369.999

2010.353

(2) Foreign Currency Non-Resident (B) Loan Scheme

1496.842

1930.801

(C ) Term Loans from Scheduled Banks

4419.880

6487.300

(D) Working Capital facilities from Scheduled Banks

738.185

139.507

Total

13418.656

12574.211

 

Notes:

Note:

1) Debentures referred in (A) above are secured by first mortgage on specified vessels of the company on pari-passu basis with other lenders and first / pari- passu charge on the specified immovable properties.

2) Foreign Currency Loan referred in (B) above are secured by first Charge on specified vessels of the company on pari-passu basis with other lenders and also include an External Commercial Borrowings of Rs.1026.935 millions (Rs.1235.912 millions) which is secured by exclusive charge on specified vessels of the Company.

3) Term Loan refered in (C) above are secured by first charge on specified vessels, on pari passu basis with other lenders.

4) Working capital facilities from Scheduled Banks are secured by second charge on specified vessels and 1st charge on all receivables and other current assets of the company on pari-passu basis. Overdraft facility of Rs.750.000 millions (Nil) is clean.

 

Unsecured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

1) 700 (700) 1.50 %Foreign Currency Convertible Bonds of USD 10,000 each

During the year, pursuant to notices received from Bondholders NIL (150) FCCBs of aggregate amount of NIL (USD 15,00,000) were converted into NIL (10,96,686) equity shares of Re.1/- each at a predetermined price of Rs.59.812 per share at a fixed exchange rate of Rs.43.73 per USD

The balance bonds are convertible at any time up to the close of Business on April 20, 2010 by holders into newly issued ordinary shares of Re 1 each at agreed conversion price. The Bonds may be redeemed in whole at the option of the Company at any time on or after May 15, 2008 and or prior to April 20, 2010 at the accreted principal amount together with accrued interest.

(The option on the bonds has not been exercised by the bond holders and hence they have been subsequently redeemed as per the terms.)

315.980

356.650

2) Commercial Paper

(Maximum balance outstanding for commercial paper Rs.1000.000 millions)

(Amount repayable within one year Rs.1000.000 millions (Rs.1000.000 millions.))

1000.000

1000.000

3) Overdraft facility from Scheduled Banks

0.000

198.520

Total

1315.980

1555.170

 

Financial Institution:

  • Debenture and Security Trustees
  • Axis Trustee Services Limited
  • Unit Trust of India Investment and Advisory Services Limited

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Contractor, Nayak and Kishnadwala

Chartered Accountants

 

 

Subsidiaries :

v      Mercator International Pte Limited (MIPL) - Singapore

v      Mercator Oil and Gas Limited (MOGL) - India

v      Mercator Petroleum Private Limited (MPPL) - India

v      Mercator Offshore Holdings Pte Limited (MOHPL) - Singapore

v      Mercator Offshore (Nigeria) Pte Limited (MONPL) - Subsidiary of MIPL

v      Oorja Holdings Pte.Limited. (OHL) Singapore - subsidiary of MIPL

v      Mercator PH (Dutch) Holding BV (Netherlands) - Subsidiary of MIPL

v      Mercator Petroleum( Romania) Pte Limited - Subsidiary of MIPL

v      Mercator Lines Singapore Pte Limited (MLS) - Subsidiary of MIPL

v      Mercator Offshore Limited Singapore - Subsidiary of MOHPL

v      Mercator Petroleum (Turkey) BV (Netherlands) - Subsidiary of Mercator PH (Dutch) Holding BV (Netherlands)

v      Varsha Marine Pte Limited (Singapore) - Subsidiary of MLS

v      Vidya Marine Pte Limited (Singapore) - Subsidiary of MLS

v      Mercator Lines (Panama) Inc - Subsidiary of MLS

v      Oorja 1 Pte Limited (Singapore) - Subsidiary of OHL

v      Oorja 2 Pte Limited (Singapore) - Subsidiary of OHL

v      Oorja 3 Pte Limited (Singapore) - Subsidiary of OHL

v      Oorja Mozambique Limitada (Mozambique) - Subsidiary of OHL

v      MCS Holdings Pte Limited (Singapore) - Subsidiary of OHL

v      Oorja Indo Petangis Four (Indonesia) - Subsidiary of Oorja 1 Pte Limited

v      Oorja Indo Petangis Three (Indonesia) - Subsidiary of Oorja 2 Pte Limited

v      Oorja Indo KGS (Indonesia) - Subsidiary of Oorja 3 Pte Limited

v      Broadtec Mozambique Minas Limitada (Mozambique) - Subsidiary of Oorja Mozambique Limitada

v      PT Mincon Indo Resources (Jakarta) - Subsidiary of Oorja Indo Petangis Three (Indonesia).

 

 

Promoter Group Companies:

v      MLL Logistics Private Limited

v      Mercator Mechmarine Limited

v      Mercator Healthcare Limited

v      Ankur Fertilizers Private Limited

v      Rishi Holding Private Limited

v      AHM Investments Private Limited

v      Oorja Resources India Private Limited

v      AAAM Properties Private Limited

v      MMAXX Dredging Private Limited

v      Mech Marine Engineers Private Limited

v      Oilmax Energy Private Limited

v      Optimum Oil and Gas Limited

v      CMA Constructions and Properties Private Limited

 

 

 

CAPITAL STRUCTURE

 

After 07.09.2010

 

Authorised Capital : Rs.2350.000 millions

 

Issued, Subscribed & Paid-up Capital : Rs. 244.892 millions

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

350000000

Equity Shares

Rs.1/- each

Rs.350.000 Millions

20000000

Preferences Shares

Rs.100/- each

Rs.2000.000 Millions

 

Total

 

Rs.2350.000 Millions

 

Issued Capital :

No. of Shares

Type

Value

Amount

235992073

Equity Shares

Rs.1/- each

Rs.235.992 Millions

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

235992073

Equity Shares

Rs.1/- each

Rs.235.992 Millions

 

Note:

 

(a) 11, 83, 45,500 shares of Re.1/-were allotted as bonus Shares by capitalisation of Securities Premium Account during the year 2005-06.

 

(b) NIL (10, 96,686 Shares of Re.1/- each were allotted on conversion of FCCB5 during the Year 2008-09)

 

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

235.992

235.992

234.900

2] Warrants Against Share Capital

0.000

166.725

166.700

3] Reserves & Surplus

10303.415

10709.525

8786.400

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

10539.407

11112.242

9188.000

LOAN FUNDS

 

 

 

1] Secured Loans

13418.656

12574.211

6248.200

2] Unsecured Loans

1315.980

1555.170

590.900

TOTAL BORROWING

14734.636

14129.381

6839.100

DEFERRED TAX LIABILITIES

0.000

0.000

2881.200

 

 

 

 

TOTAL

25274.043

25241.623

18908.300

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

18089.270

20210.229

12979.600

Capital work-in-progress

0.000

491.413

1001.000

ASSET HELD FOR DISPOSAL

0.000

2606.057

0.000

 

 

 

 

INVESTMENT

585.634

434.280

201.500

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
242.155

108.201

224.400

 

Sundry Debtors
1687.686

2276.328

1037.800

 

Cash & Bank Balances
6684.020

4595.827

564.200

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
6196.099

6843.305

5105.400

Total Current Assets
14809.960

13823.661

6931.800

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

641.119

343.801

1898.500

 

Other Current Liabilities
7566.903

11794.280

 

 

Incomplete Voyages (Net)
(66.583)

35.441

 

 

Provisions
69.382

150.495

307.100

Total Current Liabilities
8210.821

12324.017

2205.600

Net Current Assets
6599.139

1499.644

4726.200

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

25274.043

25241.623

18908.300

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Shipping Income

5762.870

11377.002

8031.200

 

 

Other Income

45.077

450.584

776.600

 

 

Profit / (Loss) on Sale of Investment (Net)

(0.300)

3.650

0.000

 

 

Profit / (Loss) on Sale of Assets (Net)

1191.407

(0.117)

0.000

 

 

TOTAL                                     (A)

6999.054

11831.119

8807.800

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Ship Operation Expenses

4182.367

7020.832

5251.200

 

 

Administrative and Other Expenses

387.670

476.614

 

 

 

TOTAL                                     (B)

4570.037

7497.446

5251.200

 

 

 

 

 

Less

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

2429.017

4333.673

3556.600

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

949.397

1018.397

762.700

 

 

 

 

 

 

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

1479.620

3315.276

2793.900

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1371.163

1436.562

1038.300

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

108.457

1878.714

1755.600

 

 

 

 

 

Less

TAX                                                                  (H)

44.500

67.500

92.100

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

63.957

1811.214

1663.500

 

 

 

 

 

 

Short Provision for tax of earlier year

0.000

(0.194)

NA

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2862.983

2339.422

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

10.000

188.000

NA

 

 

Transfer to Debenture Redemption Reserves

1687.000

390.000

NA

 

 

Transfer to Tonnage Tax Reserve

0.000

570.000

NA

 

 

Dividend on Preferences Shares

0.000

0.000

NA

 

 

Dividend on Equity Shares (On Conversion of FCCB / Warrants)

0.000

1.206

NA

 

 

Proposed Dividend on Equity Shares

17.198

117.996

NA

 

 

Tax on Dividend

7.839

20.258

NA

 

BALANCE CARRIED TO THE B/S

1174.903

2862.983

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Shipping Income

1746.009

3814.930

NA

 

 

Other Income

418.627

224.456

NA

 

TOTAL EARNINGS

2164.636

4039.386

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Stores & Spares

115.387

125.765

NA

 

 

Capital Goods (including CWIP)

1029.132

10234.333

NA

 

TOTAL IMPORTS

1144.519

10360.098

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

- Basic

0.27

7.68

NA

 

- Diluted

0.27

7.54

NA

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

1481.190

1734.670

1511.790

1644.760

Total Expenditure

972.880

1272.470

1507.930

1552.410

PBIDT (Excl OI)

508.310

462.200

3.860

92.350

Other Income

41.120

15.330

2.640

(40.030)

Operating Profit

549.430

477.530

6.500

52.320

Interest

211.750

184.850

236.060

227.240

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

337.680

292.680

(229.560)

(174.920)

Depreciation

292.340

285.560

292.790

295.570

Profit Before Tax

45.340

7.120

(522.350)

(470.490)

Tax

4.320

1.210

4.720

29.750

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

41.020

5.920

(527.070)

(500.250)

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

41.020

5.920

(527.070)

(500.250)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
0.91

15.31

18.89

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.88

16.51

21.86

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
0.33

5.52

8.82

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.01

0.17

0.19

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.18

2.38

0.77

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.80

1.12

3.14

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry Creditors

 

 

 

For Services and expenses

 

 

 

- Due to Micro and Small Enterprises

--

--

NA

- Others

641.119

343.801

NA

 

641.119

343.801

NA

 

HISTORY:

 

Subject an established player in the marine transportation industry and the second private sector shipping company in India was incorporated on 24th November 1983 as a private limited company. The Company also has presence in the Oil and Gas Offshore business through its subsidiaries. Subject's business segments are classified into broad categories of Shipping (Tankers (Wet Bulk), Dry Bulk Carriers and Dredgers), Offshore, Logistic Solutions and Mining. The fleet of the company is a combination of vessels ranging from Bulk carriers, Medium Range vessels and Aframax's to VLCC's. Subject has done pioneering work by operating vessels in some unchartered rivers like the Tapti and has thus opened new navigational routes. Subject's status was converted from private limited to a public limited company on 3rd April of the year1984. Mr. H. K. Mittal the promoter of the company took it over in the year 1988. The Company's maiden public issue was gone to capital market in the year of 1993. The tonnage of the company was 4000 DWT level in the year of 1994. The Company had undertaken a major expansion drive to add 9 tanker vessels during the year 2005 at an aggregate cost of Rs 130.000 Millions. During the year 1996, the company acquired and commenced the operation of one mini tanker, the Power Station of BSES at Dahanu. In 1998, subject won a contract with M/s. Indian Oil Corporation Limited against stiff competition for transportation of bulk petroleum products on the East Coast. The Company had signed an agreement with Central Depository Service (India) Limited and National Securities Depository Limited for dematerialization in the year 2000. Mercator had acquired one second hand aframax tanker of 94706 M/tons Dead Weight Tonnage (DWT) in the year 2003 under second phase of its expansion program. The Company was nominated consecutively for two years for the 'Emerging Company of the Year 2003-04 and 2004-05' by the Economic Times Awards for Corporate Excellence. The Company was awarded the 'Star Company of the Year Award' in Small and Medium Sector (SME) by the leading financial newspaper, Business Standard in February of the year 2005. Mercator had signed a Memorandum of Agreement for rights of operating on Geared Panamax vessels in the identical year of 2005. Subject was rated as 'Fastest Growing Small Company of India' across all the sectors by Business Today in March of the year 2005. During April of the same year 2005, the company successfully completed its first international offering of Foreign Currency Convertible Bonds (FCCB) aggregated USD 60 million. During the year 2006-07, M.T. Punita, a vessel of the company and its members received 'Award for Maritime Bravery' from Indian Coast Guard. Mercator, although had a new entrant into the Dry Bulk Segment in February of the year 2007, achieved the distinction of having the largest Dry Bulk vessel over to call at the Mumbai Port. During the year 2007-08, subject made its foray into dredging with acquisition of own fleet of dredgers and maiden Initial Public Offerings by the subsidiary listed on main board of Singapore Stock Exchange. Mercator had secured a long term charter contract with leading PRC shipping conglomerate in March of the year 2008 through its Singapore subsidiary. The Company had signed a Memorandum of Agreement to purchase 1 double Hull VLCC during May of the year 2008. In July of the same year 2008, Mercator Singapore took delivery of vessels YK Taurus and YK Titan.

 

MANAGEMENT DISCUSSION AND ANALYSIS:

 

Industry Structure:

 

SHIPPING:

 

With approximately 80% of the cargo and close to 100% of hydrocarbons moved  by   water   today,  shipping  is  the  primary  means   of   international transportation of any essential raw material or finished goods.

 

Globally, the industry is classified in several ways; ranging from capacity specific classification to route specific classification. Most commonly, it is  broadly  classified into Wet Bulk; Dry bulk and Liners. Wet  Bulk  gets further  sub divided into Tankers and Offshore; whereas Dry Bulk is  mainly further broken down into sub segments based on carrying capacities;  VLOCs, Panamax,  Cape  Size and so on. Similarly, typical Liner  firms  deal  with Container Carriers, MPP, Ro-Ro's etc.

 

TANKER (WET BULK) MARKETS - Review and Outlook:

 

After  falling  in 2009, the impact of the cold winter  and  declining  oil stocks  has revived the oil markets. Global oil demand is expected to  rise in  2010 due to resurgent economic activity in Asian countries,  especially China.

 

Against  the  backdrop  of  this rising  oil  demand,  the  tanker  markets commenced  the  year  2010 on a firm note. The rising  freight  rates  were mostly in response to higher crude prices and increased demand. Very  large

crude carrier (VLCC) spot earnings were firm on account of extreme  weather conditions  and lack of tonnage availability. However, the firmness in  the market  lasted for a shorter duration. The tanker market in the long  term remained  soft with exception of few spikes and expected to remain same  in near future.

 

DRY BULK - Review and Outlook:

 

The  dry  bulk  segment  essentially  comprises  transportation  of   major commodities viz, iron ore, core food grains, fertilizers and others and the demand  for  shipping is derived from the  transportation  requirements  of these commodities. Given the huge demand for these commodities and the need for  transporting them from regions with excess availability to the  demand driven  areas, the dry bulk shipping segment is likely to perform  well  in the coming years.

 

The  Baltic  Exchange's Dry Index (BDI), which is largely  accepted  as  an indicator  for  global  economic growth, was 53% down  in  2009.  This  was despite, a delay in scheduled deliveries of vessels, combined with a  surge in scrapping activity. However, increase in total dry bulk imports by China compensated for the contraction in dry bulk imports throughout the rest  of the  world.  The  Baltic  Dry Index has been volatile  in  the  past  year, fluctuating between 1,463 points in April 2009 and 4,661 points in November 2009.  While volatility has continued into the current fiscal,  the  market has witnessed an upmove in recent times.

 

China  is  expected  to  lead  the recovery in  the dry bulk segment as construction activity has benefited and grown on account of its  Government

 

sponsored  stimulus packages. It is expected to boost iron ore  demand  and resultantly  trade  too,  given that 51% of steel demand in  China  is  for construction purposes.

 

Further,  the incremental global demand for dry bulk vessels is also  being driven  by the increasing elongation of major dry bulk trade routes,  as  a result  of geographical shifts in dry bulk mining and  production,  coupled with changes in global consumption patterns.

 

OFFSHORE DRILLING - Review and Outlook:

 

Oil exploration is the starting point in the petroleum value chain and  the exploration and production (E and P) activity is often referred to as  upstream activity.  Offshore  drilling  is undertaken once a  company  identifies  a potential area to drill in the ocean.

 

Needless to say, the upstream activity is dependent on the investments made in  the  oil  and gas sector. The global recession  and  dropping  oil  and natural  gas  prices,  continued to put pressure  on  exploratory  drilling

 

efforts  worldwide  against  the backdrop of the  reduction  in  investment activities.  Cancellations  or delays of drilling programmes,  falling  day rates and financing are some of the issues that plague the rig market. This resulted  in lower utilization levels for jack-ups at 70% in the year  2009 as against 87% in 2008.

 

However, with the recent pick up in the economies across the globe,  rising crude oil prices, E and P spending surveys are indicating that global  offshore oil  and  gas  production and resultantly investments in  these  areas  are poised for growth.

 

DREDGING - Review and Outlook:

 

Dredging  entails excavation activity in shallow seas or fresh water  areas with  the  purpose of gathering up bottom and disposing them  in  order  to enable  navigation  through  such waterways. Dredging is  of  two  types  - Capital  which  is  required  for  creating  depths  and  Maintenance   for maintaining the depths or for reclamation.

 

According to the Planning Commission, there is an investment opportunity of USD  25  billion by 2011-12 in India's shipping and ports sectors,  as  the country seeks to double its ports capacity to over 1,500 MT.  Segment-wise, while   ports  sector  would  provide  a  USD  13.75   billion   investment opportunity,  shipping  and inland waterways are likely to  present  a  USD 11.25 billion investment opportunity. Minor ports are expected to add  610.85 MTPA capacities during the Eleventh Plan. Thus, the business prospects  for dredging companies appear promising.

 

COAL MINING - Review and  Outlook:

 

The  Coal Ministry has indicated that coal intake is projected to  cross  2 billion tonnes by 2030. Total coal demand during the 11th Plan (2007-12) is expected  to  touch 700 million tonnes. India is steadily  turning  into  a large  producer, importer and consumer of coal. A significant part is  used by  the power utility sector followed by the steel (coking  coal)  segment. The  Government subsequently revised its target of power capacity  addition to  92,700  MW  in  the 11th Five Year Plan  (2007-12),  from  the  earlier estimate  of 78,577 MW (as of June 2007) to sustain the growth momentum  of the economy. This has lead to an increase in the demand for coal to a great

extent.

 

During  the recession, the import demands from China and India saved  their markets  from  any major downturn. Likewise in 2010,  Asian  economies  are expected  to sustain the momentum as the western countries are expected  to post  a  slow but steady recovery. Trade sources expect  global  prices  to remain strong and go up further going forward. Thus,  the  overall demand for coal and resultantly coal mining,  opens  up significant business opportunities.

 

OPERATIONAL AND FINANCIAL PERFORMANCE:

 

Mercator  (standalone  as  well  as  through  various  subsidiaries);   has diversified  operations  with  its own fleet  of  Tankers,  Bulk  Carriers; Dredgers  and a Jack Up Rig. Mercator also has license to own  and  operate coal  mines  in  Indonesia  and  Mozambique.  Mercator  has  also  executed production  sharing contract with Government of India in respect of  2  oil blocks; which are in Cambay basin in Western India; awarded under NELP-VII. The  exploration  work would be commenced upon receipt of  license from  the Government of Gujarat, which is under process.

 

The consolidated  income from the operations was Rs. 18090.000 Millions   for  the year as compared to Rs. 22110.000 Millions  in the previous year.  The Profit After Tax was Rs. 1040.000 Millions  against Rs. 4670.000 Millions  in the  previous year. The cascading effects of recession on charter rates impacted  overall performance.

 

Tanker (Wet Bulk) performance:

 

Mercator's  tanker  fleet  consists of Very  Large  Crude  Carrier  (VLCC), Suezmaz, Aframaxes, Product Tankers and Chemical Tankers. Within  the  tanker  segment,  Mercator had 10  own  tankers  of  aggregate capacity of 1,343,508 DWT at the beginning of the year (including one  VLCC under conversion) and 2 in-chartered chemical tankers of 30,826 DWT. During the year, 4 single hull  tankers  of  aggregate  capacity of  289,457  DWT  were  phased  out attaining  25  years of age in view of IMO Regulations. Further 1  VLCC  of 287,875  that was under conversion at the beginning of year was  sold  upon conversion  to  its subsidiary. 2 product tankers of 42,235 DWT  each  were acquired  during  the  year. At the end of the year,  Mercator  had  7  own tankers of an aggregate tonnage of 797,935 DWT and 1 in-chartered  chemical tanker of 19,996 DWT. Mercator was first Indian Company to phase out all its single  hull vessels in compliance with IMO regulations and all its  tanker vessels are now double hull.

 

Mercator  achieved  a  turnover of Rs. 4440.000 Millions  as compared  to  Rs.  9660.000 Millions   in  the  previous year recording 54% decline  on  YOY  basis.;  the performance was primarily affected due to phase out of substantial  tonnage besides  freight  rates  prevailing soft through the year.  The  number  of operating days were reduced by about 15% to 3541 days (previous year  4,196 days). The Time Charter Equivalent (TCE) at USD 14,684/- too reduced by 47% from USD 27,976 in the previous year. Overall contribution from the  tanker division was 25% (previous year 44%) of the total operating income.

 

Dry Bulk performance:

 

Mercator's bulk carrier fleet is comprised of Geared and Gearless Panamaxes and Kamsarmaxes and Very Large Ore Carrier (VLOC).

 

At  the beginning of the year, there were 10 own bulk carriers  aggregating tonnage  of 751,066 DWT and 2 chartered-in bulk carriers with an  aggregate capacity of 147,277 DWT. During the year, 2 bulk carriers were acquired.  A VLOC was acquired by conversion of VLCC. Further, 1 panamax was acquired by exercising  options on the chartered vessel. Also 2 Kamsarmaxes  of  93,270 DWT  each  were  chartered-in on long term. Thus at the  end  of  the  year Mercator  had 12 bulk carriers with an aggregate capacity of 1,102,994  DWT and 3 chartered in bulk carriers of 260,165 DWT. Additionally; at the  year end;  1  panamax vessel of 74,483 DWT was on order for  acquisition  and  1 Kamsarmax vessel 91,450 DWT contracted for long term charter-in.

 

Mercator  achieved  a turnover of Rs. 6800.000 Millions  (Rs. 9350.000  Millions   previous year).  Though vessel operating days increased by about 12% over  the  last year  to 5038 days (previous year 4,499 days) TCE of USD 26,310/-  declined by  34%  against previous year of USD 39,966/-.  This  segment  contributed about 38% of the total operating income (Previous year 42%).

 

Dredging performance:

 

In  Dredging;  at  the beginning of the year; Mercator had  4  dredgers  of aggregate  capacity 23500 Cubic meter. There was no change during the  year in  the  fleet. However, dredging activities suffered due to  deferment  of many  infrastructure projects because of global economic melimitedown. On  1090 (previous year 1287) days of operating, Mercator achieved a turnover of Rs. 860.000  Millions   (Previous year Rs. 1680.000 Millions ). TCE at USD  13,557  reduced  by about  32%  against previous year's USD 19,956/- This  segment  contributed about 4% of total operating income (Previous year 8%).

 

Offshore performance:

 

Year 2009-10 was the first full year of operations of the jack-up rig which continued to be deployed on bare boat charter @ USD 92,700 per day. On  365 (previous  year 21), operating days; a turnover of Rs. 1600.000 Millions  (Pr.  Yr. Rs.  90.000  Millions )  was  achieved. This contributed  about  9%  of  the  total operating income.

 

Coal Mining and  Trading performance:

 

During the year, coal mining productions were ramped up as also trading was carried on contributing increase in topline. During the year, about 0.7  mn MT  (previous  year  0.3  mn MT) coal was  generated  from  coal  mines  in Indonesia. Total about 1.7 mn MT (previous year 0.3 mn MT) coal was traded, on  which  a turnover of Rs. 377 Millions  (previous year Rs. 77  Millions )  was achieved.  This  contributed  about  21%  of  the  total  operating  income (previous year 4%).

 

The turnover from coal handling/Logistics was Rs. 620.000 Millions  (previous  year Rs.  570.000 Millions ). This contributed about 3% of the total  operating  income (previous year 3%).

 

REVIEW OF OPERATIONS OF SUBSIDIARIES:

 

Mercator  International  Pte.  Limited (MIPL)  -  (Wholly  Owned  Overseas Subsidiary -WOS):

 

MIPL was incorporated in Singapore in January 2007 as WOS. This company has multiple  subsidiaries  and  fellow  subsidiaries  in  Singapore  and   other countries. As at the beginning of the year; MIPL had fleet of two  chemical tankers  f aggregate capacity of 30826 DWT on standalone basis. At the  end of the year it had one chartered in chemical tanker f 19,926 DWT. MIPL  has also diversified interest through its Subsidiaries; in commodity mining and trade  business  as  a over towards backward integration  of  the  Company's business strategy.

 

During  the  year, it achieved a turnover of about  Rs.  233.900 Millions   equivalent of USD 4.93 million (as against Rs. 1391.400 Millions   equivalent to  USD 29.95 million in the previous year) with a net loss of Rs.  86.300  Millions  equivalent  of  USD .82 million (previous year net profit of  Rs.  126.600  Millions  equivalent  of  USD  2.72  mn)  on  standalone  basis;  that  is  excluding contribution from its fellow subsidiaries.

 

Mercator Lines (Singapore) Limited (MLS)

 

This  is a Singapore Stock Exchange listed subsidiary of MIPL,  which  owns 72.15%  controlling  interest  in the company. MLS has  three  fully  owned subsidiaries;  namely, Varsha Marine Pte. Limited , Vidya Marine Pte. Limited  and Mercator  Lines  (Panama) Inc. Consolidated fleet of MLS as  at  March  31, 2010,  comprised of 11 own vessels of aggregate capacity of  1,033,708  DWT and   3  chartered-in  vessels  of  aggregate  capacity  of  260,165   DWT. Additionally; at the year end; 1 panamax vessel of 74,483 DWT was on  order for acquisition and 1 Kamsarmax vessel contracted for long term charterin.

 

During the year, MLS achieved a consolidated turnover of Rs. 6842.100 Millions  equivalent  of USD 144.470 million (as against Rs. 8985.200 Millions   equivalent  to USD 186.138 million in the previous year) and earned net profit after tax of Rs. 1929.800  Millions   equivalent to USD 40.748 million (as against Rs.  3802.000  Millions  equivalent to USD 75.84 million in previous year).

 

The  Board of Directors of MLS recommended dividend @ 1.16 cents per  share consecutively for the second year ended on March 31, 2010.

 

The  Board of Directors of wholly owned subsidiaries of MLS; namely  Varsha Marine  and Vidya Marine declared and paidinterim dividends of USD 1.20  million and USD 5.20 million respectively, during the year. (Previous  Year USD 3 million each)

 

Mercator Lines Panama did not carry out any business other than holding and assigning charter hire right of one Panamax vessel (previous year two) on a back to back basis and remained dormant during the year.

 

Mercator Offshore Holdings Pte. Limited (MOHPL) and Mercator Offshore  Limited (MOL)-WOS:

 

MOHPL  was incorporated in March 2009 as Special Purpose Vehicle -  WOS  of the Company in Singapore which is holding MOL.

 

The year was first full year of operations of this subsidiary, during  which  it achieved turnover of Rs. 597.000 Millions  equivalent  of  USD 33.718  million  (previous  year Rs.89.200 Millions  equivalent of USD  1.92  mn)  and earned net profit of Rs. 718.400 Millions  equivalent of USD 15.169 million (previous year Rs. 38.900 Millions  equivalent of USD 0.84mn).

 

Mercator Oil and  Gas Limited (MOGL)-WOS:

 

This an Indian based non-listed wholly owned subsidiary is yet to  commence any business activities.

 

Mercator Petroleum Private Limited (MPPL):

 

This is an Indian non-listed subsidiary. Main object of MPPL is to  explore business opportunities in the oil and gas sector domestically. The  company has entered into a Production Sharing Contract with the Government of India

 

for  exploration of Petroleum under the Seventh New  Exploration  Licensing Policy  round (NELP-VII) and has been allotted two blocks under the  scheme in  Cambay  Basin,  Western  India.  However,  pending  licenses  from  the Government; the subsidiary is yet to commence business activities.

 

Oorja Holdings Pte. Limited (OHPL) and its subsidiaries:

 

OHPL is 100% subsidiary of Mercator International Pte. Limited (MIPL) based in Singapore with the objective to explore business opportunities in commodity mining  and  trade.  As  at March 31, 2010,  OHPL  has  four  wholly  owned subsidiaries further; namely, Oorja 1 Pte. Limited , Oorja 2 Pte. Limited, Oorja 3 Pte. Limited ; Oorja Mozambique Minas Limitada; and MCS Holdings Pte. Limited Oorja  1 has a further subsidiary by the name of Oorja Indo  Petangis  Four (OIP-4)  incorporated in Indonesia. Oorja 2 has further subsidiary  by  the name of Oorja Indo Petangis Three (OIP-3) incorporated in Indonesia.  Oorja 3 has further subsidiary named Oorja Indo KGS incorporated in Indonesia. OIP -3  and  OIP-4 jointly have wholly owned subsidiary named  PT  Mincon  Indo Resources  incorporated  in  Jakarta.  Oorja  Mozambique  has  a  step-down subsidiary  namedBroadtec  Mozambique  Minas  Limitada  with  85%  holding; incorporated in Mozambique.

 

PT.  Oorja  Indo KGS, was awarded for largest Indonesian coal  exporter  to India for November 2009.

 

During  the year; OHPL achieved consolidated turnover of Rs. 3774.200  Millions  equivalent  of USD 79.69 million (previous year Rs. 1375.400 Millions  equivalent  of USD 29.51 mn) and suffered loss of Rs. 170.100 Millions  equivalent of USD  3.59 million (previous year loss of Rs 171.900 Millions  equivalent of USD 2.49 mn).

 

None of above subsidiary's audit report contains any qualification. The other subsidiaries viz. Mercator Offshore (Nigeria) Pte. Limited ; Mercator PH  (Dutch)  Holding  BV,  Netherland;  Mercator  Petroleum  (Turkey)   BV, Netherland;  and  Mercator Petroleum (Romania) Pte.  Limited ,  Singapore  were incorporated  during  the  year  and  are  yet  to  commence commercial activities.

 

(For  the purpose of financial performances conversion rate of  per  dollar has been taken as Rs. 47.36 for profit and loss account (previous year  Rs. 46.455) and Rs. 45.14 for balance sheet items (previous year Rs. 50.95).

 

EXPANSION AND FINANCE:

 

During the year, two product tankers and one panamax vessel were acquired at an aggregate cost of Rs.1933.700 millions (equivalent of USD 42.30 million).

 

A Very Large Crude Carrier (VLCC) was converted into Very Large Ore Carrier (VLOC) at a cost of Rs.3259.300 millions (equivalent of USD 72.20 million) and deployed on consecutive voyage charter for a period of 14 years with international ore major Vale. This reflects the company’s ability to assessing market conditions and grabbing the opportunities. Further, one more panamax vessel was contracted to be acquired at a price of Rs.1715.300 millions (equivalent of USD 38 million); delivery of which was taken subsequent to the year end. These expansions were financed by a mix of internal accruals; IPO proceeds of a subsidiary and debts.

 

During the year, the Company issued Secured Redeemable Non-convertible Debentures of an aggregate of Rs.3500.000 millions on private placement basis, which have been listed on Bombay Stock Exchange.

 

Subsequent to year end; entire outstanding FCCBs of aggregate amount of USD 7 million out of issue of USD 60 million in the year 2005; were redeemed on maturity on April 27, 2010

 

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2011

                                                                                                                                                          (Rs. in Millions)

 

Particular

Standalone

YEAR ENDED

31.03.2011

1. (a) Income From Operations

6372.408

1. (b) Sale of Coal

--

1. (c) Profit/ (Loss) on Sale of Assets

(0.324)

TOTAL INCOME

6372.084

2. Expenditure

 

a) Operating Expenses

1889.804

b) Bunker Cost

1428.487

c) Vessel Hire Charges

1557.562

d) Coal Operating Expenses

--

e) Employees Cost

119.653

f) Other Expenditure

125.065

g) Dry Docking Expenses

142.594

Exchange Fluctuation Loss

42.522

TOTAL EXPENDITURE

5305.687

 

 

Profit before depreciation, interest, tax and other income and exceptional items (EBIDTA)

1066.397

Depreciation

1166.255

3. Profit from operation before other income, interest and exceptional items

(99.858)

4. Other income

 

- Profit on sale of investments

1.841

- Miscellaneous income

17.539

5. Profit/ (Loss) before interest and exceptional items

(80.478)

6. Interest (Net)

859.903

7. Profit/ (Loss) after interest but before exceptional items

(940.381)

8. Exceptional items

--

9. Profit / Loss from ordinary activities before tax

(940.381)

Minority interest

--

10. Tax expenses

 

- Current

40.000

- Deferred

--

- MAT Credit Entitlement

--

11. Net Profit/ (Loss) from ordinary activities after tax

(980.381)

12. Extra ordinary items

--

13. Net profit / Loss for the period

(980.381)

14. Paid up equity share capital (face value of equity shares of Rs. 1/- each)

244.892

15. Reserves excluding revaluation reserves

9758.928

16. Earning per shares (EPS)

 

Before extra-ordinary items

(4.12)

- Basic (Rs.)

(4.12)

- Diluted (Rs.)

 

After extra-ordinary items

 

- Basic (Rs.)

--

- Diluted (Rs.)

--

17. Public shareholding

 

- Number of Shares

146408007

- Percentage of Shareholding

59.78

18. Promoters and Promoter Group Shareholding

 

a) Pledged/Encumbered

 

- Number of Shares

43712500

- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)

44.39

- Percentage of Shares (as a % of the Total Share Capital of the Company)

17.85

b) Non Encumbered

 

- Number of Shares

54771566

- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)

55.61

- Percentage of Shares (as a % of the Total Share Capital of the Company)

22.37

 

SEGMENT CONSOLIDATED REVENUE RESULTS AND CAPITAL EMPLOYED FOR THE YEAR ENDED MARCH, 2011                                                                                                                                                                                                                                                                                                                       (Rs. in Millions)

 

Particular

YEAR ENDED

31.03.2011

1. Segment Revenue

 

(Net sale/ income from each segment should be disclosed under this head)

 

a) Shipping 

12990.359

b) Offshore

1198.081

c) Coal (Mining, Trading and Logistics)

13880.599

d) Other/ Un-allocated 

47.366

 

 

Net sale / income from operations

28116.405

 

 

2. Segment results (Profit/ (loss) before tax and interest from each segment)

 

a) Shipping 

1338.216

b) Offshore

835.114

c) Coal (Mining, Trading and Logistics)

955.566

d) Other/ Un-allocated 

17.317

Less: (i) Interest

2152.331

 

 

Total profit before tax

993.882

 

 

3. Capital employed

 

(Segment assets – Segment liability)

 

a) Shipping 

54712.344

b) Offshore

6757.789

c) Coal (Mining, Trading and Logistics)

3032.951

d) Other/ Un-allocated 

(38038.334)

Total

26464.750

 

STATEMENT OF ASSETS AND LIABILITY AS ON 31ST MARCH, 2011

                                                                                                                                                          (Rs. in Millions)

 

Particular

Standalone

31.03.2011

SHAREHOLDERS FUNDS

 

a) Capital

244.892

b) Warrants against Share Capital

259.600

c) Reserves and Surplus

9758.928

Minority Interest

--

LOAN FUNDS

13445.407

TOTAL

23708.827

 

 

FIXED ASSETS

 

NET FIXED ASSETS

16996.893

 

 

INVESTMENTS

61.218

 

 

Deferred Tax

--

 

 

CURRENT ASSETS, LOANS AND ADVANCES

 

a) Inventories

234.864

b) Sundry Debtors

1607.083

c) Cash and Bank Balances

4427.311

d) Loans and Advances

7345.100

TOTAL CURRENT ASSETS

13614.358

Less: Current Liabilities and Provisions

 

a) Liabilities

6911.853

b) Provisions

21.758

c) Incomplete Voyages (Net)

30.031

TOTAL CURRENT LIABILITIES

6963.642

 

 

NET CURRENT LIABILITIES

6650.716

 

 

TOTAL

23708.827

 

Note:

 

1.       These results reviewed by the Audit committee; were taken on record by the Board of Directors at its meeting held on May 28, 2011.

 

2.       During the last quarter, a subsidiary sold and delivered its Jack-up Rig. Subsequent to quarter and another subsidiary successfully commissioned its FPU project.

 

3.       The Company has divided segments into Shipping (includes tanker, bulker and dredger), Offshore and Coal (includes mining, trading and logistics). 

 

4.       The ships are operating internationally and the performance of the segment is monitored on the basis of primary segment only.

 

5.       Exceptional items include write off of the entire front end fees incurred on borrowings for the jack up rig.

 

6.  No complaints of investors: Pending at the beginning of quarter: Nil; Received during the quarter:14; resolved during the quarter 14; pending at the end of the quarter: Nil

 

7. Figures of the previous period/ year have been rearranged / regrouped wherever necessary.

 

Contingent Liabilities not provided for:

 

Particulars

31.03.2010

(Rs. in millions)

Counter guarantees issued by the Company for guarantees obtained from bank

230.553

Corporate guarantees issued by the company on behalf of wholly owned subsidiaries

1963.590

TOTAL

2194.143

 

 

FIXED ASSETS:

 

v      Land

v      Office Premises

v      Vessels

v      Office and Computer Equipments

v      Furniture and Fixtures

v      Vehicles

v      Plant and machinery

 

WEBSITE DETAILS:

 

PRESS RELEASE:

 

MERCATOR REPORTS ANNOUNCES AUDITED RESULTS FOR THE YEAR ENDED MARCH 2011

 

Mercator Lines Limited, India’s 2 largest private sector shipping company (in terms of tonnage), announced its Audited financial results for the year ended 31st March 2011 (FY2011). The total consolidated income for the FY 2011 was Rs.28290.000 millions against Rs.18090.000 millions in the previous year ended on 31st March 2010; recording an increase of 52% over previous year. The consolidated Net Profit before exceptional item; minority interest and Tax was Rs.1220.000 millions against Rs.1090.000 millions in the previous year recording 11% increase. The consolidated Net Profit was Rs.470.000 millions against Rs.530.000 millions in the previous year. During the year, Mercator group added 1 Aframax tanker; 2 Panarnax and 1 Kamsarmax dry bulk carriers; 1 MOPU and 1 FSO.

 

The Dry Bulk segment and Tankers segment contributed about 27% and 16% respectively to the total revenues for the year. Dredging division supplemented the revenues by about 3%. Share of Offshore segment in total revenues was at about 5%.

 

Coal mining and trading activities contributed about 49% to the total revenue.

 

The shipping industry worldwide continued to sail through tough times on account of various reasons including over supply of tonnage. Mercator’s strategy of diversifying into other related segments of business has helped it to minimize overall adverse impact. For the second consecutive year; the coal business has posted a handsome growth in revenue of over 250% this year and in EBIDATA over 900%. This tempo of growth is expected to continue.

 

Going forward; the successful commissioning of FPU project would add considerable growth in the performance of the Mercator.

 

Mercator has also good order book undet dredging segment which is also expected to contribute to its growth in near future.

 

About the Company:

 

Mercator Lines Limited, the second largest private sector shipping company in India (by aggregate fleet tonnage capacity), has global presence through its subsidiaries. The group has diversified interests in Tankers, Bulk Carriers, Dredgers, Coal Mines, Logistics and Offshore. As at 31st March 2011; Mercator Group owns or operates a fleet of 18 dry carriers; 8 tankers and 4 dredgers with an aggregate capacity of about 2.41 million DWT of an average age of about eight years in addition to 1 MOPU and I FSO. The Group has also Coal mines in Indonesia and Mozambique. Further; the Group has two oil blocks awarded to it under NELP VI) exploration work of which has commenced.

 

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.44.93

UK Pound

1

Rs.72.43

Euro

1

Rs.63.62

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

49

 

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.