MIRA
INFORM REPORT
|
Report Date : |
19.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
TOLANI SHIPPING COMPANY LIMITED |
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Registered
Office : |
10-A, Bakhtawar, Nariman Point, Mumbai-400021, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
29.01.1974 |
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Com. Reg. No.: |
11-17161 |
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Capital
Investment / Paid-up Capital : |
Rs.236.520
Millions |
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CIN No.: [Company Identification
No.] |
U61100MH1974PLC017161 |
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Legal Form : |
A closely held Public Limited Liability Company. |
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Line of Business
: |
Providing Shipping Services. |
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No. of Employees
: |
Information denied by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
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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 |
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Maximum Credit Limit : |
USD 46000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established shipping company having fine track.
Financial position of the company appears to be sound. Trade relations are
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
|
Name : |
Mr. Raman |
|
Designation : |
Accounts Manager |
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Contact No.: |
91-22-66568989 |
|
Date : |
18.05.2011 |
LOCATIONS
|
Registered Office : |
10-A, Bakhtawar, Nariman Point, Mumbai-400021, |
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Tel. No.: |
91-22-22926878/22026878/66568989 |
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Fax No.: |
91-22-22870697/22870697 |
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E-Mail : |
DIRECTORS
As on 28.09.2010
|
Name : |
Mr. Nandlal Pribhdas Tolani |
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Designation : |
Director |
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Address : |
1100, Prabhu Kutir, 15, |
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Date of Birth/Age : |
15.02.1924 |
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Date of Appointment : |
29.01.1974 |
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Name : |
Mr. Rohet Nandlal Tolani |
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Designation : |
Director |
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Address : |
55, |
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Date of Birth/Age : |
19.12.1953 |
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Date of Appointment : |
06.04.1978 |
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Name : |
Ms. Sujata Arun Naik |
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Designation : |
Director |
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Address : |
4, |
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Date of Birth/Age : |
16.10.1961 |
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Date of Appointment : |
13.11.2006 |
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Name : |
Mr. Nareshchand C Singhal |
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Designation : |
Director |
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Address : |
D 107, Poornima, 23, |
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Date of Birth/Age : |
10.08.1936 |
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Date of Appointment : |
18.09.2003 |
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Name : |
Mr. Michael Philip Pinto |
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Designation : |
Director |
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Address : |
405, Shalaka, |
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Date of Birth/Age : |
27.05.1943 |
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Date of Appointment : |
14.11.2008 |
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Name : |
Mr. J. Tahil Reejhsinghani |
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Designation : |
Director |
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Address : |
603, Prabhu Kunj, |
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Date of Birth/Age : |
28.08.1920 |
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Date of Appointment : |
30.04.1982 |
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Name : |
Mr. Manohar Prahlad Awati |
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Designation : |
Director |
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Address : |
Pavan Vinchurni, P.O Nirguti, Phaltan, Satara-415523, |
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Date of Birth/Age : |
07.09.1927 |
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Date of Appointment : |
04.11.1986 |
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Name : |
Mr. Rammurthi Kumar |
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Designation : |
Managing Director |
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Address : |
A-303, Cascade Vasant Oscar, LBS Marg, Mulund (West), Mumbai-400080, |
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Date of Birth/Age : |
17.01.1965 |
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Date of Appointment : |
26.07.2000 |
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Name : |
Mr. Seshadri Venkatachalam |
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Designation : |
Whole Time Director |
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Address : |
174, Govinda Bulding, Jawaharnagar,
Road No. 2, Goregaon (West), Mumbai-400062, |
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Date of Birth/Age : |
17.09.1957 |
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Date of Appointment : |
26.09.2007 |
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Name : |
Mr. Virendra Sitaram Gharat |
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Designation : |
Whole Time Director |
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Address : |
D-1101, |
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Date of Birth/Age : |
07.06.1955 |
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Date of Appointment : |
26.09.2007 |
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Name : |
Mr. Chunduri Venkata Veerabhadra Rao |
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Designation : |
Director |
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Address : |
502, |
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Date of Birth/Age : |
01.07.1958 |
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Date of Appointment : |
26.09.2007 |
KEY EXECUTIVES
|
Name : |
Ms. Seeta Venkatraman Iyer |
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Designation : |
Secretary |
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Address : |
H-1203, |
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Date of Birth/Age : |
01.04.1977 |
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Date of Appointment : |
26.09.2007 |
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|
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|
Name : |
Mr. Raman |
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Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 28.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Nandlal Pribhdas Tolani |
|
16987886 |
|
Nandlal Pribhdas Tolani HUF |
|
941218 |
|
Papu Nandlal Tolani |
|
1109596 |
|
Sujata Arun Naik |
|
2474788 |
|
Sujata Arun Naik |
|
2138505 |
|
Mihikaa Arun Naik |
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5 |
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Tolani Private Limited, |
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1 |
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Tolani Engineers Private Limited, |
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1 |
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|
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Total |
|
23652000 |
As on 28.09.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
0.01 |
|
Directors
or relatives of directors |
|
99.99 |
|
Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Providing Shipping Services. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Information denied by the management. |
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Bankers : |
The Bank of Nova Scotia Asia Limited, One Raffles Quay, #20-01, North
Tower, Singapore-048583, |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Messrs Chandabhoy and Jassoobhoy Chartered Accountant |
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Address : |
208, |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
As on 28.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
500000 |
Preferences Shares |
Rs.500/- each |
Rs.250.000 Millions |
|
|
Total |
|
Rs.500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
23652000 |
Equity Shares |
Rs.10/- each |
Rs.236.520
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
236.520 |
236.520 |
236.520 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11368.243 |
10867.079 |
9363.590 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
11604.763 |
11103.599 |
9600.110 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
6288.386 |
6858.887 |
3880.231 |
|
|
2] Unsecured Loans |
93.459 |
53.184 |
47.217 |
|
|
TOTAL BORROWING |
6381.845 |
6912.071 |
3927.448 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
17986.608 |
18015.670 |
13527.557 |
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
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|
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FIXED ASSETS [Net Block] |
15279.215 |
15225.112 |
8085.466 |
|
|
Capital work-in-progress |
39.684 |
17.845 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
2436.955 |
2555.087 |
5272.425 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
77.771
|
19.300 |
51.486 |
|
|
Sundry Debtors |
35.470
|
158.724 |
106.776 |
|
|
Cash & Bank Balances |
2.177
|
2.315 |
29.974 |
|
|
Other Current Assets |
71.217
|
0.376 |
18.773 |
|
|
Loans & Advances |
334.292
|
356.649 |
350.301 |
|
Total
Current Assets |
520.927
|
537.364 |
557.310 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
152.372
|
167.731 |
344.989 |
|
|
Other Current Liabilities |
65.577
|
5.651 |
36.487 |
|
|
Provisions |
72.224
|
146.356 |
6.168 |
|
Total
Current Liabilities |
290.173
|
319.738 |
387.644 |
|
|
Net Current Assets |
230.754
|
217.626 |
169.666 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
17986.608 |
18015.670 |
13527.557 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Earning From Shipping Activities |
1953.271 |
4356.677 |
4294.029 |
|
|
|
Other Income |
132.338 |
30.122 |
669.238 |
|
|
|
Profit on |
65.702 |
0.000 |
623.502 |
|
|
|
Profit on |
0.000 |
0.000 |
2094.552 |
|
|
|
TOTAL (A) |
2151.311 |
4386.799 |
7681.321 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Payments to and provision for employees |
277.220 |
247.180 |
171.071 |
|
|
|
Operating and other expense |
400.090 |
1149.764 |
1689.305 |
|
|
|
Loss on sale/ redemption of investments (net) |
0.000 |
195.110 |
0.000 |
|
|
|
Loss on sale of assets (net) |
0.242 |
0.005 |
0.000 |
|
|
|
TOTAL (B) |
677.552 |
1592.059 |
1860.376 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1473.759 |
2794.740 |
5820.945 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
94.541 |
219.850 |
203.431 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1379.218 |
2574.890 |
5617.514 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
791.433 |
715.014 |
378.696 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
587.785 |
1859.876 |
5238.818 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
18.102 |
46.527 |
103.226 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
569.683 |
1813.349 |
5135.592 |
|
|
|
|
|
|
|
|
|
Add |
INCOME TAX OF
EARLIER YEARS |
0.685 |
0.013 |
1.932 |
|
|
|
DEPRECIATION OF
EARLIER YEARS |
0.000 |
9.659 |
0.000 |
|
|
|
PRIOR PERIOD
ADJUSTMENTS (NET) |
(0.253) |
0.000 |
(0.899) |
|
|
|
|
|
|
|
|
|
Less |
TRANSFER TO TONNAGE
TAX RESERVE UNDER SECTION 115VT OF THE INCOME TAX ACT 1961 |
80.000 |
406.000 |
411.500 |
|
|
|
|
|
|
|
|
|
Add |
TRANSFER FROM
TONNAGE TAX RESERVE (UTILISES) |
0.000 |
830.600 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8893.713 |
6966.850 |
3032.142 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
57.100 |
182.400 |
513.700 |
|
|
|
Dividend |
59.130 |
118.260 |
236.520 |
|
|
|
Tax on Dividend |
9.821 |
20.098 |
40.197 |
|
|
BALANCE CARRIED
TO THE B/S |
9257.777 |
8893.713 |
6966.850 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
24.09 |
76.67 |
217.13 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
26.48
|
41.34 |
66.86 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
30.09
|
42.69 |
122.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.72
|
11.80 |
60.61 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.17 |
0.55 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.57
|
0.65 |
0.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.80
|
1.68 |
1.44 |
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 |
152.372
|
167.731 |
344.989 |
OPERATIONS AND
FUTURE OUTLOOK
During the year, the Company’s income from operations stood at Rs.1953.270 million compared to Rs.4356.680 million of the previous year. Net Profit after tax was Rs.569.680 million against Rs.1813.350 million of the previous year. The reduction in the earnings is attributable to the growing weakness in the bulk shipping freight rates, which continued its downward trend during the year. The shipping industry experienced difficult periods, impacted by the economic
Meltdown, excessive capacities and credit squeeze in
financial sector. The fortunes of
dry bulk shipping were marked by dramatic swings and volatility. As stated in
the last report, the Baltic Freight
Index (BDI) plunged from a high
of 11,793 points in May, 2008 to a low
of 663 points in December, 2008. Most of the industry analysts predicted
a bearish year
2009 for the
dry bulk sector.
However, BDI somewhat recovered in
2009 to reach
4,000 points by
November, 2009 but
ended at 2,998
points as of 31st March, 2010.
During this period, the Company focused on prudent management of its
operations and finances and improve
efficiencies. The Management also persisted with recovery of its
outstanding dues and was successful
in collecting Rs.21.920
million out of
disputed arbitration claims.
The Company also focused on
its expansion plans and acquired
a modern second hand
Panamax Bulk Carrier
of 75,944 dwt
in March, 2010.
Keeping with the Company’s growth plan, it has also contracted for construction
of three Kansarmax Bulk Carriers of 81,000 dwt each. These
modern and efficient vessels will enhance
almost 82% of the
Company’s carrying capacity
and substantially improve
its earnings and presence in
International Bulk Trade.
Looking ahead, The
Organization for Economic
Co-operation and Development
(OECD) has forecasted that the Global economy will expand 4.6% in 2010 and 4.5 % in 2011, compared with an average of 3.7%
during the decade through 2006 and China will
expand more than
11 % in
2010, India 8.3%
and Brazil 6.5%.
International trade thus is expected to grow and the developing
countries like China, India and
those in Africa will become a
constant and much bigger factor
in world trade. All these augur well for
the sea borne trade
and strengthening of the
freight market. However, with substantial
number of new bulk carriers expected to enter the world fleet over the coming 12 to 18 months,
the freight rates are expected to remain
soft till majority of
the new tonnages
are absorbed by
the growing demand
and ageing vessels are
scrapped.
Despite the difficult
environment of 2009,
the Company has
emerged much stronger.
It will continue
to leverage on
its strength and
abilities to remain
competitive and consolidate its position in the Industry.
Bankers Charges Report
as per Registry
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U61100MH1974PLC017161 |
|
Name of the
company |
TOLANI SHIPPING
COMPANY LIMITED |
|
Address of the registered
office or of the principal place of
business in |
10-A, Bakhtawar, Nariman Point, Mumbai-400021, |
|
Type of charge |
Others |
|
Particular of
charge holder |
The Bank of Nova Scotia Asia Limited, One Raffles Quay, #20-01, North
Tower, Singapore-048583, |
|
Email |
|
|
Nature of description
of the instrument creating or modifying the charge |
First
Pre-Delivery Security Assignment relating to 81,000 dwt class bulk carrier
with |
|
Date of
instrument Creating the charge |
20.04.2011 |
|
Amount secured by
the charge |
Rs.1027.640
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Aggregate of the
applicable Margin (2.1% p.a.) and LIBOR. Terms of
Repayment The Loan in respect
of pre-delivery commitment is to be repaid in full on the delivery date from
the delivery advance. Margin 2.1% per annum. Extent and
Operation of the charge (1) All the
present and future rights of the Owner/Company under the ship building contract
have been assigned to the Bank. (2) All the
rights of the Owner/Company under the Refund Guarantee provided to cover
Builder's obligation under the ship building contract have been assigned to
the Bank. |
Fixed Assets:
- Building
- Fleet
- Office Equipment
- Furniture and Fixtures
- Vehicles
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.45.08 |
|
|
1 |
Rs.73.35 |
|
Euro |
1 |
Rs.64.30 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--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 |
NO |
|
--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.