MIRA
INFORM REPORT
|
Report Date : |
02.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
THE GREAT EASTERN SHIPPING COMPANY LIMITED |
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Registered
Office : |
Ocean House, 134/A, Dr. Annie Besant, Worli, Mumbai – 400018, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
03.08.1948 |
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Com. Reg. No.: |
006472 |
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Paid-up Capital
: |
Rs.1522.900 Millions |
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CIN No.: [Company Identification
No.] |
L35110MH1948PLC006472 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT10388A MUMT09402B MUMT09401A MUMT00543E |
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PAN No.: [Permanent Account No.] |
AAACT1565C |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchange |
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Line of Business
: |
Engaged in
Shipping Business |
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No. of Employees
: |
577 (approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 220000000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Financial position of the company appears to be sound. Fundamental are strong
and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
Ocean House, 134/A, Dr. Annie Besant, Worli, Mumbai – 400018, |
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Tel. No.: |
91-22-66613000/24922100/2200 |
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Fax No.: |
91-22-24925900 |
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E-Mail : |
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Website : |
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The Great Eastern Institute of Maritime Studies : |
54-56 Tungarli Village, Next to Perfect Engineering Works, Mumbai-Pune
Express Highway, Lonavala – 410401, Maharashtra, India |
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Tel. No.: |
91-2114-270166/67/68 / 22-66613239 |
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Vasant J Sheth Memorial Foundation : |
Energy House, 81, D. N. Road, Mumbai – 400001, |
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Tel. No.: |
91-22-66352283/84 |
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Fax No.: |
91-22-22672989 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Kanaiyalal Maneklal Sheth |
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Designation : |
Executive Chairman |
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Name : |
Mr. Bharat Kanaiyalal Sheth |
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Designation : |
Deputy Chairman and Managing Director |
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Name : |
Mr. Asha Vasant Sheth |
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Designation : |
Director |
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Name : |
Mr. Cyrus Jamshed Guzder |
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Designation : |
Director |
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Name : |
Mr. Keki Minoo Mistry |
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Designation : |
Director |
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Name : |
Mr. Vineet Sohanlal Nayyar |
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Designation : |
Director |
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Address : |
5A, Old Friends Colony, |
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Name : |
Mr. Berjis Minoo Desai |
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Designation : |
Director |
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Name : |
Mr. Kundapur Vaman Kamath |
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Designation : |
Director |
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Name : |
Mr. |
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Designation : |
Executive Director |
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Name : |
Rusi N. Sethna |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Jayesh Madhusudan Trivedi |
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Designation : |
Company Secretary |
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AUDIT COMMITTEE : |
Mr. Keki Mistry, Chairman Mr. Cyrus Guzder Mr. Berjis Desai |
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SHAREHOLDER/INVESTORS’ GRIEVANCE COMMITTEE |
Cyrus Guzder, Chairman Mr. Bharat K. Sheth Ms. Asha V. Sheth |
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REMUNERATION COMMITTEE |
Mr. Cyrus Guzder CHAIRMAN Mr. Berjis Desai |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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41,689,376 |
27.44 |
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3,901,512 |
2.57 |
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45,590,888 |
30.01 |
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Total shareholding of Promoter and Promoter Group (A) |
45,590,888 |
30.01 |
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(B) Public Shareholding |
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14,571,057 |
9.59 |
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390,139 |
0.26 |
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10,478 |
0.01 |
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13,204,218 |
8.69 |
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25,217,926 |
16.60 |
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1,052 |
- |
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1,052 |
- |
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53,394,870 |
35.14 |
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12,610,303 |
8.30 |
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27,359,175 |
18.01 |
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11,681,954 |
7.69 |
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1,298,371 |
0.85 |
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1,224 |
- |
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1,297,087 |
0.85 |
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60 |
- |
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52,949,803 |
34.85 |
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Total Public shareholding (B) |
106,344,673 |
69.99 |
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Total (A)+(B) |
151,935,561 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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354,123 |
- |
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354,123 |
- |
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Total (A)+(B)+(C) |
152,289,684 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Multilateral & Bileteral Development
Financial InstitutionBUSINESS DETAILS
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Line of Business : |
Engaged in
Shipping Business |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
577 (approximately) |
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Bankers : |
Not Available |
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Facilities : |
* The Company maintains unencumbered assets (including cash and cash equivalents)
of market value not less than outstanding face value amount of the
Debentures. |
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Banking
Relations : |
-- |
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Financials Institution : |
IL and FS Trust Company Limited, IL and FS Financial Centre Plot No.22
G Block Bandra Kurla Complex, Bandra East, Mumbai – 400051, |
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Auditors : |
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Name : |
Kalyaniwalla and Mistry Chartered Accountant |
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Address : |
Kalpataru Heritage, 127, Mahatma Gandhi Road, Mumbai 400 001, Maharashtra, India |
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Joint Venture : |
CGU Logistic Limited (Upto 31.03.2009) |
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Subsidiaries : |
Greatship ( ·
Greatship Global Holdings Limited,
Mauritius ·
Greatship Global Offshore Services
Pte. Limited, Singapore ·
Greatship Global Energy Services Pte.
Limited, Singapore ·
Greatship DOF Subsea Projects Private
Limited, India ·
Greatship Subsea Solutions Singapore
Pte. Limited, Singapore (incorporated on 12.08.2010) ·
Greatship Subsea Solutions Australia
Pty. Limited, Australia (incorporated on 17.08.2010) ·
Greatship (UK) Limited, United
Kingdom (incorporated on 29.10.2010) ·
Greatship Global Offshore Management
Services Pte. Limited, Singapore (incorporated on 09.12.2010) |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300000000 |
Equity Shares |
Rs.10/- each |
Rs.3000.000 Millions |
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000 Millions |
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Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
152708445 |
Equity Shares |
Rs.10/- each |
Rs.1527.100
Millions |
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Subscribed:
|
No. of Shares |
Type |
Value |
Amount |
|
152292202 |
Equity Shares |
Rs.10/- each |
Rs.1522.900
Millions |
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Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
152289684 |
Equity Shares |
Rs.10/- each |
Rs.1522.900
Millions |
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Notes:
- Out of above, 74,39,858 (previous year 74,39,858) shares are allotted as fully paid-up pursuant to a contract without payment being received in cash.
- The Paid-up Equity Share Capital includes Rs.0.030 Million (previous year Rs.0.030 Million), on account of forfeited shares and is net of Calls in Arrears Rs.0.031 Million (previous year Rs.0.031 Million).
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
1522.900 |
1522.900 |
1522.900 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
53517.700 |
52188.300 |
47759.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
55040.600 |
53711.200 |
49282.200 |
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LOAN FUNDS |
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1] Secured Loans |
23658.200 |
27188.900 |
30665.500 |
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2] Unsecured Loans |
12500.000 |
9500.000 |
0.000 |
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TOTAL BORROWING |
36158.200 |
36688.900 |
30665.500 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
91198.800 |
90400.100 |
79947.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
42586.600 |
42718.300 |
47393.600 |
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Capital work-in-progress |
10595.100 |
5537.500 |
6346.500 |
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|
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INVESTMENT |
33023.100 |
32510.000 |
12509.600 |
|
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DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
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|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
570.600
|
428.700
|
457.300 |
|
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Sundry Debtors |
533.300
|
867.200
|
1301.800 |
|
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Cash & Bank Balances |
8194.700
|
13211.200
|
18339.900 |
|
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Other Current Assets |
117.500
|
144.600
|
215.900 |
|
|
Loans & Advances |
341.400
|
629.200
|
1319.300 |
|
Total
Current Assets |
9757.500
|
15280.900
|
21634.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
498.100
|
1638.100
|
2444.500 |
|
|
Other Current Liabilities |
3287.600
|
2366.100
|
5181.800 |
|
|
Provisions |
977.800
|
1642.400
|
309.900 |
|
Total
Current Liabilities |
4763.500
|
5646.600
|
7936.200 |
|
|
Net Current Assets |
4944.000
|
9634.300
|
13698.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
91198.800 |
90400.100 |
79947.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from Operation |
14924.500 |
20875.300 |
31723.300 |
|
|
|
Other Income |
1668.300 |
1578.600 |
1924.100 |
|
|
|
TOTAL (A) |
16592.800 |
22453.900 |
33647.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating Expenses |
7359.200 |
10370.400 |
12594.100 |
|
|
|
Administrative and Other Expenses |
941.600 |
2869.600 |
1135.100 |
|
|
|
Impairment Loss on Vessel |
857.000 |
0.000 |
700.000 |
|
|
|
TOTAL (B) |
9157.800 |
13240.000 |
14429.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
7435.000 |
9213.900 |
19218.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1452.600 |
1429.700 |
1536.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5982.400 |
7784.200 |
17681.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3030.300 |
3464.600 |
3484.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2952.100 |
4319.600 |
14196.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
280.000 |
391.500 |
450.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
2672.100 |
3928.100 |
13746.900 |
|
|
|
|
|
|
|
|
|
Add |
PRIOR PERIOD
ADJUSTMENTS |
(7.500) |
29.400 |
101.300 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
2664.600 |
3957.500 |
13848.200 |
|
|
|
|
|
|
|
|
|
Less |
TRANSFER TO TONNAGE
TAX RESERVE ACCOUNT UNDER SECTION 115VT OF THE INCOME-TAX ACT, 1961 |
400.000 |
400.000 |
2300.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
28867.300 |
27117.700 |
18394.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
270.000 |
400.000 |
1400.000 |
|
|
|
Interim Dividend on Equity Shares |
533.000 |
0.000 |
1218.300 |
|
|
|
Proposed
Dividend on Equity Shares |
685.300 |
1218.300 |
0.000 |
|
|
|
Dividend Distribution Tax |
166.000 |
189.600 |
207.100 |
|
|
BALANCE CARRIED
TO THE B/S |
29477.600 |
28867.300 |
27117.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
17.50 |
25.99 |
90.94 |
|
|
|
- Diluted |
17.46 |
25.93 |
90.75 |
|
QUARTERLY
|
PARTICULARS |
|
|
|
30.06.2011 |
|
Type |
|
|
|
1st
Quarter |
|
Net Sales |
|
|
|
4670.600 |
|
Total Expenditure |
|
|
|
2796.700 |
|
PBIDT (Excl OI) |
|
|
|
1873.900 |
|
Other Income |
|
|
|
572.900 |
|
Operating Profit |
|
|
|
2446.800 |
|
Interest |
|
|
|
435.800 |
|
PBDT |
|
|
|
2011.000 |
|
Depreciation |
|
|
|
832.000 |
|
Profit Before Tax |
|
|
|
1179.000 |
|
Tax |
|
|
|
160.000 |
|
Profit After Tax |
|
|
|
1019.000 |
|
Net Profit |
|
|
|
1019.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
16.06
|
17.63
|
41.16 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.78
|
20.70
|
44.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.64
|
7.45
|
20.57 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.08
|
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.74
|
0.79
|
0.78 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.05
|
2.71
|
2.73 |
LOCAL AGENCY FURTHER INFORMATION
Financial Performance:
The total income for
the year was recorded at Rs. 16592.800 millions as against Rs. 22453.900
millions in the previous year and a Net Profit after prior period adjustments
of Rs. 2664.600 millions as against Rs. 3957.500 millions in the previous year.
Management Discussion and Analysis
Company Performance
In financial year
2011, the Company recorded a total income of Rs. 16592.800 millions (Previous year
Rs. 22453.900 millions) and earned a PBIDT of Rs. 8292.000 millions (previous
year Rs. 9213.900 millions).
Tanker Business
Market Trend and Analysis
Continuing the trend
of the last financial year, earnings during financial year 2011 remained weak.
High oil inventories, release of storage vessels in the market, stagnant US
imports coupled with inventory draw down and steady new building tonnage
addition contributed to the depressed state of the tanker market through the
year.
The world tanker
fleet increased to 457.60 mn dwt at the end of the financial year, about 4%
higher than the 441.40 mn dwt at the beginning of financial year 2011.
On the positive
note, phasing out of single hull tankers, increase in scrapping and higher oil
demand from non-OECD countries especially China provided some respite to tanker
owners. But increasing fuel cost and disruption in crude oil supply resulted in
lower fleet utilization and consequent softer charter earnings.
Company Performance
The tanker business
accounted for around 80% of the Company’s net revenues and 78% of the operating
profits.
In financial year
2011, around 54% of the tanker earnings were derived from the period market.
Crude tankers, inclusive of ‘spot’ and ‘period’, earned an average TCY of
$20,400/day (previous year $22,300/day). Product carriers, inclusive of ‘spot’
and ‘period’, earned an average TCY of $15,800/day, (previous year
$18,200/day).
Tanker Fleet Changes
The tanker fleet of
the Company stood at 27 tankers aggregating 2.10 mn dwt, with an average age of
9.8 years (as of 31.03.2011) as against 32 tankers aggregating 2.48 mn dwt with
an average age of 10.6 years as on 31.03.2010.
During the year, the
Company acquired one double hull General Purpose Product tanker ‘Jag Prachi’ in
December 2010.
During the year, the
Company sold and delivered the following vessels to the buyers:
- 1996 built Suezmax
crude carrier ‘Jag Layak’ in April 2010
- 1987 built Aframax
crude carrier ‘Jag Lamha’ in October 2010
- 1985 built General
Purpose product carrier ‘Jag Palak’ in May 2010
- 1985 built Medium
Range product carrier ‘Jag Pavitra’ in June 2010
- 1984 built Medium
Range product carrier ‘Jag Pranam’ in August 2010
- 1985 built General
Purpose product carrier ‘Jag Pragati’ in December 2010
Subsequent to
31.03.2011, the Company has entered into a contract to sell en bloc all the
three Very Large Crude Carriers on order. These will be delivered to the new
buyer immediately upon delivery from the yard.
Outlook for the Tanker Market
While IEA estimates
global oil demand to grow to 89.4 mn barrels per day in calendar year 2011,
which is about 1.4 mn barrels higher than that seen in calendar year 2010,
persistent high oil prices entail significant demand risk going forward. Key
factors to watch out for in the medium term would be non-OECD demand, Japan’s
increase in the oil consumption post the earthquake and revival in the floating
storage activities. Also, with new refining capacity adding up in Middle East
and Asia, it is expected to boost the ton mile especially for the product
tanker market. If the Middle East and Libya crisis intensify in the future, it
can result in oil supply disruption making a positive scenario for crude tanker
market. But with muted growth from the western economies and supply side
pressures looming large, the tanker market will be under pressure going
forward.
The global tanker
orderbook currently stands at about 113.9 mn dwt, or 24.9% of the fleet at the
end of March 2011. Of this, approximately 50.0 mn dwt, or 11% of current fleet,
is due for delivery in the balance of calendar year 2011.
Dry Bulk Business
Market Trend and Analysis
As anticipated, the
dry bulk markets remained weak, although volatile throughout financial year
2011. With new building deliveries entering the market, the dry bulk freight
rates across all the segments remained under pressure. Severe floods in
Australia disrupted the transportation facilities especially in Queensland,
which had a negative impact on the coal exports from this region. Heavy rainfall
in Brazil resulted in logistics related issues impacting the iron ore trade.
Adding to this was an iron ore export ban imposed by Karnataka state that
resulted in lower cargo movement reflecting lower utilizations. Towards the
year end, tsunami in Japan brought an abrupt suspension in coal and iron ore
shipments further deteriorating dry bulk demand.
For the calendar
year 2010, world seaborne trade increased by 9% as compared to calendar year
2009. Surprisingly, China’s imports grew less than expected, whereas rest of
the world showed stronger growth than anticipated (i.e. about 12%). Some more
positive factors like port congestions, slippages in deliveries and higher
scrapping did help freight markets to some extent, but enormous fleet getting
added to the supply, the freight scenario worsened as the year progressed.
The world dry bulk
fleet increased to 551.9 mn dwt at the end of financial year 11, about 16%
higher than the 475.6 mn dwt at the beginning of the financial year. Fleet
growth would have been even worse had it not been for significant slippage
(about 38% in calendar year 2010) in the new building deliveries.
Company Performance
The dry bulk fleet
contributed around 20% of the Company’s net revenues and 22% of the operating
profits. The average TCY for dry bulk vessels, inclusive of ‘spot’ and
‘period’, was approximately $20,754/day as compared to $20,300/day in the
previous year.
Dry Bulk Fleet Changes
The dry bulk fleet
stood at 7 vessels aggregating 0.52 mn dwt, with an average age of 9.9 years
(as of 31.03.2011) as against 6 vessels aggregating 0.41 mn dwt with an average
age of 13.6 years on 31.03.2010.
During the year, the
Company took delivery of the following new built vessels – Kamsarmax bulk carrier
‘Jag Aarati’ in February 2011 and Supramax bulk carrier ‘Jag Rishi’ in March
2011.
During the year, the
Company delivered a 1980 built handysize dry bulk carrier ‘Jag Vikram’ to the
buyers in November 2010. Subsequent to 31.03.2011 the Company took delivery of
a kamsarmax dry bulk carrier ‘Jag Aditi’ in April 2011. Total bulker new
building orders for the Company now rest at two vessels.
Outlook for the Dry Bulk Market
China is likely to
continue its ongoing infrastructure investment although they will apply some
anti inflationary measures. Japan may soon resume its infrastructure rebuilding
activities which can prove positive for the dry bulk segment. The lifting up of
Karnataka iron ore ban and normalcy returning in the activities of Australian ports
can support the dry bulk freight rates to some extent. Steady improvement in
the grain trade from EU will keep the charter rates steady for the smaller
asset classes. Slippages in the new deliveries, scrapping of older vessels,
port congestions etc. can prove a saving grace but with more than 12-14% new
building deliveries expected to hit the market in remaining calendar year 2011,
the dry bulk freight market will continue to face mounting pressure.
Contingent Liabilities:
Rs. In Millions
|
Sr. No |
Particulars |
31.03.2011 |
31.03.2010 |
|
(a) |
Guarantees given by banks counter guaranteed by the Company |
5.500 |
2362.700 |
|
(b) |
Guarantees by bank given on behalf of a subsidiary company/joint
venture |
18.900 |
19.000 |
|
(c) |
Guarantees given to banks/shipyard on behalf of subsidiaries |
6966.100 |
3489.800 |
|
(d) |
Sales Tax demands under BST Act for the years 1995-96, 1996-97,
1997-98, 1998-99, 2001-02, 2009-10, 2010-11 against which the Company has
preferred appeals |
74.600 |
74.600 |
|
(e) |
Lease Tax liability in respect of a matter decided against the
Company, against which the Company has filed a revision petition in the
Madras High Court |
174.000 |
174.000 |
|
(f) |
Possible obligation in respect of matters under arbitration/appeal |
0.000 |
5.900 |
|
(g) |
Demand from the Office of the Collector and District Magistrate, |
43.400 |
43.400 |
Form 8:
|
Corporate
identity number of the company |
L35110MH1948PLC006472 |
|
Name of the
company |
THE GREAT EASTERN
SHIPPING COMPANY LIMITED |
|
Address of the registered
office or of the principal place of
business in |
Ocean House, 134/A, Dr. Annie Besant, Worli, Mumbai – 400018, |
|
This form is for |
Modification of
charge |
|
Type of charge |
Ship |
|
Particular of charge
holder |
DVB GROUP
MERCHANT BANK ( |
|
Nature of
instrument creating charge |
The Deed Of
Statutory First Priority Mortgage Dated March 25, 2010 On The Vessel Jag Pari
(Official No.1902 ) Together With The Deed Of Covenant Dated March 25, 2010
And Insurance Assignment Dated March 25, 2010 Executed In Favour Of Dvb Group
Merchant Bank (Asia) Limited (Hereinafter Referred To As 'The Bank'). |
|
Date of
instrument Creating the charge |
25/03/2010 |
|
Amount secured by
the charge |
Rs.1027.848
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest At A Rate Determined
By The Bank And In Accordance With The Loan Agreement Dated June 03, 2004 As
Amended From Time To Time (Hereinafter Referred To As 'The Loan Agreement') Terms of
Repayment The Loan Shall Be
Repaid By Fifteen (15) Consecutive Instalments, The First Fourteen (14)
Instalments To Be Repaid On Each Of The Repayment Dates And The Last
Instalment To Be Repaid Forty Seven (47) Days After The Fourteenth
Instalment. The Amount of
Each Instalment (Other Than The Last Instalment) Shall Be Us$988,695 and The Last Instalment Shall Be
Us$8,898,270. If The Loan Is
Not Drawn In Full The Amount of Repayment Instalment Shall Be Reduced
Proportionately. Margin Margin At 1.15
Per Cent (1.15%) Per Annum Extent and
Operation of the charge The Foreign
Currency Loan Of Us$22,740,000 Availed From The Bank Was Secured By A First Priority Statutory Mortgage On The
Vessel 'Jag Pratap' (Official No. 2619). |
|
Short particulars
of the property charged |
Jag Pari -
Official No 1902 Horse Power Of
The Engine - 8910 P.S Length - 162.47
Meters Breadth - 27.00
Meters Depth - 15.90
Meters Gross Tonnage -
20,302 Tons Reg.Tonnage -
8396 Tons Imo No- 8009492 |
|
Date of
instrument modifying the charge |
30/07/2007 |
|
Particulars of
the present modification |
Due To The Shortfall
In Security Value Pursuant To Clause 8.2.1 Of The Loan Agreement, The Company
And The Bank Have Entered Into A Third Supplemental Agreement Dated March 25,
2010 To The Loan Agreement, Pursuant To Which, And As Additional Security,
The Company Mortgages And Charges By Way Of First Priority Mortgage On The
Vesssel 'Jag Pari' (Official No. 1902) To And In Favour Of The Bank All Its
Right, Title And Interest In And To The Vessel 'Jag Pari' And Insurances
Thereof. |
Fixed Assets
- Fleet
- Plant and Machinery
- Land
- Ownership Flats and Building
- Vehicles
- Furniture, Fixtures and Office Equipments
BUSINESS DESCRIPTION
The Great Eastern Shipping Company Limited is engaged in shipping
business. The Company has two main business: shipping and offshore. The
shipping business is involved in transportation of crude oil, petroleum
products, gas and dry bulk commodities. The offshore business services to the
oil companies in carrying out offshore exploration and production activities,
through its wholly owned subsidiary Greatship (India) Limited. Its subsidiaries
include Subject, The Greatship (Singapore) Pte. Limited, Great Eastern
Chartering LLC and Greatship (India) Limited. For the nine month ended
31.12.2010, Great Eastern Shipping Company Limited's revenue decreased 16% to
RS20.88B. Net income increased 28% to RS4.58B. Revenues reflect a decrease in
income from Shipping segment and lower income from other operating income. Net income
was offset by a decrease in repairs and maintenance expenses, a fall in direct
operating expenses and the presence of gain from foreign exchange vs. a loss.
AS PER WEBSITE DETAILS
OVERVIEW:
Subject (G E Shipping)
·
India’s largest private sector shipping company
·
Experience
and expertise spanning over 6 decades.
·
An
enviable global reputation.
·
Creating
value for customers.
The company has two
main business : shipping and offshore. The shipping business is involved in
transportation of crude oil, petroleum products, gas and dry bulk commodities.
The offshore business services to the oil companies in carrying out offshore
exploration and production activities, through its subsidiary Greatship (India)
Limited. The shipping business has been awarded the ISO 9001: 2000 standard
certification by DNV.
HISTORY
G E
Shipping owes its success to the foresightedness of two families - the Sheths
and the Bhiwandiwallas, who started their own shipping line to help expand the
reach of their trading businesses. In 1948, after obtaining the mothballed
Liberty ship, SS Fort Elice, G E Shipping began its maiden voyage under the
entrepreneurial genius of Vasant J. Sheth and steered ahead confidently,
tasting new waters and exploring new avenues. From providing sea-logistics
support in its initial years to venturing in tramp shipping, to diversifying
into offshore oil field services, much against the industry norms, the company
has often swum against the tide and in the process, turned the tides in its
favour, thereby laying a path for others to follow.
PRESS RELEASE:
GE Shipping Q1FY12
consolidated Net Profit at Rs.1625.900 millions
GE Shipping Q1FY12
standalone Net Profit at Rs.1019.000 millions
The Board of Directors
of The Great Eastern Shipping Company Limited (G E Shipping) today approved the
Unaudited Financial Results (Provisional) for the first quarter of FY2011-12,
ended 30.06.2011.
KEY HIGHLIGHTS:
|
Q1FY'12 |
Q1FY'11 |
(Amount in Rs. millions) |
Q1FY'12 |
Q1FY'11 |
|
|
|
Income Statement |
|
|
|
5188.300 |
4532.400 |
Revenue (including other income) |
7847.500 |
7275.800 |
|
2446.800 |
2594.900 |
EBITDA (including other income) |
3841.200 |
3852.100 |
|
1019.000 |
1059.400 |
Net Profit |
1625.900 |
1718.000 |
|
|
|
Balance Sheet |
|
|
|
98050.600 |
90200.200 |
Total Assets |
128938.700 |
111273.400 |
|
56873.200 |
54290.700 |
Equity |
62597.200 |
58277.300 |
|
36479.300 |
35909.500 |
Long Term Debt (Gross) |
59214.200 |
52996.100 |
|
10433.600 |
2741.500 |
Long Term Debt (Net of Cash) |
26839.600 |
14280.400 |
|
|
|
Cash Flow |
|
|
|
1256.100 |
2171.200 |
From operating activities |
2704.700 |
2917.500 |
|
(564.700) |
(1569.500) |
From investing activities |
(931.500) |
(988.700) |
|
26.300 |
(1979.000) |
From financing activities |
(952.600) |
(2435.100) |
|
717.700 |
(1377.300) |
Net cash inflow/(outflow) |
820.600 |
(506.300) |
|
|
|
Key financial figures |
|
|
|
47.16% |
57.25% |
EBITDA Margin (%) |
48.95% |
52.94% |
|
7.28% |
7.90% |
Return on Equity (ROE) (%) |
11.62% |
11.91% |
|
6.31% |
7.70% |
Return on Capital Employed (ROCE) (%) |
7.79% |
9.54% |
|
0.64 |
0.66 |
Gross Debt/Equity Ratio (x) |
0.95 |
0.91 |
|
0.18 |
0.05 |
Net Debt/Equity Ratio (x) |
0.43 |
0.25 |
|
44.58 |
45.33 |
Exchange rate USD/INR, average (Rs) |
44.58 |
45.33 |
|
44.70 |
46.44 |
Exchange rate USD/INR, end of period (Rs) |
44.70 |
46.44 |
|
|
|
Share related figures |
|
|
|
6.69 |
6.96 |
Earnings per share, EPS (Rs) |
10.68 |
11.28 |
|
6.68 |
6.94 |
Diluted earnings per share (Rs) |
10.65 |
11.26 |
|
12.15 |
12.18 |
Cash Profit per share (Rs) |
18.77 |
18.16 |
|
- |
- |
Dividend per share (Rs) |
- |
- |
Performance Review
of Q1 FY 2011-12:
Break up of
Revenue days (Shipping):
|
Revenue
Days |
Q1
FY12 |
Q1
FY11 |
|
|
|
|
|
Owned
Tonnage |
3,178 |
3,315 |
|
Inchartered
Tonnage |
213 |
19 |
|
Total
Revenue Days |
3,391 |
3,334 |
|
|
|
|
|
Total
Owned Tonnage (mn.dwt) |
2.55 |
2.66 |
Average TCY’s
earned in various categories:
|
Average
(TCY $ per day) |
Q1’FY12
|
Q1’FY11
|
%
Chg |
|
|
|
|
|
|
Crude
Carriers |
20,097 |
20,444 |
(2)% |
|
Product
Carriers (Incl. Gas) |
16,326 |
15,485 |
5% |
|
Dry
Bulk |
16,569 |
24,484 |
(32)% |
FLEET DEVELOPMENT:
Sale and Purchase
Activities during Q1 FY2011-12:
During the
quarter:
- The Company entered
into a contract to sell en bloc all three VLCC’s (318,000 dwt each) on order.
These will be
delivered to the new buyer immediately upon delivery from the yard.
- The Company took
delivery of new building Kamsarmax dry bulk carrier “Jag Aditi”.
- The Company
delivered its 1989 built Suezmax crude carrier “Jag Lakshya” to the buyers.
Subsequent to the
quarter:
- The Company took
delivery of new building Supramax dry bulk carrier “Jag Rani”.
Capital Expansion
Plan
The Company
currently has a total capex commitment of around USD 55 mn, which translates to
approx. Rs.2420.000 millions at current exchange rates. Out of this, approx USD
33 mn has already been advanced to the yards as stage payments. This will
result in addition to the tonnage of about 0.08 mn dwt (1 Kamsarmax dry bulk
carrier).
Fleet Profile: as
on date
|
|
No. of |
Avg age |
|
Categories
|
ships |
(years) |
|
|
|
|
|
Crude
Carriers |
9 |
8.6 |
|
Product
Carriers |
16 |
9.0 |
|
Gas
Carrier |
1 |
20.0 |
|
TANKERS
TOTAL |
26 |
8.9 |
|
Capesize
|
1 |
15.0 |
|
Kamsarmax
|
2 |
0.0 |
|
Panamax
|
1 |
16.0 |
|
Supramax
|
4 |
4.3 |
|
Handymax
|
1 |
14.0 |
|
DRY
BULK TOTAL |
9 |
7.9 |
|
TOTAL
FLEET |
35 |
8.6 |
|
(
2.61 mn dwt) |
|
|
MARKET COMMENTARY:
Ř
Excessive fleet supply
as a theme continues to dominate
The tanker freight
market remained subdued throughout the quarter. Some of the key factors that
resulted in weak markets were less Japanese crude imports due to earthquake,
stagnant oil demand from the developed economies and ongoing MENA crisis which
intensified during this period. Even the US driving season failed to pick up
this year reflecting in softer product tanker freight rates. The new fleet
supply added pressure to the existing fragile freight market.
Even though steady
demand in the steel products and minor bulks supported by strong Chinese
coastal trade was witnessed throughout the quarter, the dry bulk freight rates
remained under pressure, especially the larger assets due to excessive fleet
addition in the market. Iron ore shipments in China also registered a decent
growth but were unable to absorb the supply side pressure. Australian coal
mines and ports are yet to recover fully from the after effects of the floods
resulting in disrupted coal exports. All these factors were collectively
responsible for the depressed dry bulk freight scenario.
OUTLOOK:
Tanker Market:
IEA forecasts
world oil demand to grow by 1.47 mn barrels per day (mbpd) to 91 mbpd in
CY2012. But declining demand from major industrialized nations, higher crude
prices and aggravating European debt crisis is expected to have a negative
effect on the oil demand imposing uncertainty for the medium term. The ongoing
Libyan tension has materially tightened the crude supply market and with no
signs of cease fire, the situation seems grim adding pressure on the existing
weak freight rates. Steady fleet addition and high fuel cost are also expected
to drag down the effective day rates and operating margins of the tanker
operators.
Dry Bulk Market:
On back of huge
fleet additions, dry bulk freight rates are expected to remain volatile. Even
if positive factors like port congestions, slippages in deliveries and
substantial increase in scrapping activities (around 13mn dwt has been scrapped
year to date) are witnessed, the sheer volume additions in the new supply are
keeping the freight rates depressed. On the demand side, China is expected to
continue its steady pace of iron ore and coal imports and with its tight
monetary policies likely to have peaked out, slight rebound in commodity demand
is expected, which can provide some relief for the dry bulk shipping demand.
REVENUE
VISIBILITY:
The revenue
visibility for the balance part of FY 2011-12 is around Rs.3960.000 millions. Crude
tankers and product carriers (incl Gas carrier) are covered to the extent of
around 55% and 60% of their operating days respectively. In case of dry bulk
carriers, they are covered to the extent of around 42% of the fleet’s operating
days.
DEVELOPMENTS IN
THE SUBSIDIARIES:
Greatship (India)
Limited (GIL):
GIL and its
subsidiaries currently own and operate four Platform Supply Vessels (PSV),
seven Anchor Handling Tug cum Supply Vessels (AHTSV), three Multipurpose
Platform Supply and Support Vessels (MPSSV), three Platform/ ROV Support
Vessels (ROVSV) and two 350 Feet jack up rigs. GIL and its subsidiaries have a
total capex commitment of around US$ 450 mn for an order book of seven vessels
- two Multi Support Vessels (MSV) in India, three Platform/ ROV Support Vessels
(ROVSV) in Sri Lanka and two 150 TBP Anchor Handling Tug cum Supply Vessels
(AHTSV) in Singapore and one 350 feet jack up rig in Dubai.
OUTLOOK:
With oil
stabilizing around US$90 per barrel, strong signals of optimism are witnessed
in the E and P activities. Globally, E and P expenditures rose by 10% in 2010
and are expected to grow at a healthy level in 2011 and 2012 as well going by
most estimates. Demand for older technology assets is expected to remain under
pressure as clients have started preferring newer and more advanced assets
given the increase dactivities in deep waters, stringent operational and client
safety regulations. This should inevitably lead to phasing out of the old
fleet, easing pressure on the supply side created by addition of new fleet in
recent times.
REVENUE
VISIBILITY:
The revenue
visibility for the balance part of FY 2011-12 is around Rs.6040.000 millions.
PSVs and AHTSVs are covered to the extent of around 76% and 37% of their
operating days respectively. ROVSVs and MPSSVs have coverage of around 100% and
38% for the balance part of FY2012. In case of Jackup rigs, they are covered to
the extent of around 97% of the operating days.
The Great Eastern
Chartering LLC (Sharjah):
This wholly owned
subsidiary was set up with the objective of in chartering tankers as well as
dry bulk vessels and the commercial operation of such in chartered tonnage.
This company currently operates 1 dry bulk carrier with remaining average in
chartered duration of 8 months.
The Business Times: 20.08.2011
(Singapore) SINGAPORE-BASED asset management firm Lion Global Investors
Limited is among seven companies targeted by a liquidator of swindler Bernard
Madoff's firm in lawsuits to claw back at least US$172.8 million they allegedly
received from investments made with him by Fairfield Sentry Limited.
The lawsuit raises questions over Lion Global parent Great Eastern
Holdings' disclosure in 2008 that its indirect exposure of about S$64 million
to Madoff's funds will 'have no material impact on the group'.
A spokesman for Lion Global declined to comment, saying its legal
advisers are looking into the matter. Great Eastern representatives also
declined comment.
Irving H Picard, the trustee overseeing the liquidation of Bernard L
Madoff Investment Securities LLC, sued Lion Global in federal bankruptcy court
in Manhattan yesterday, alleging Fairfield Sentry, a so-called Madoff feeder
fund, had transferred US$50.5 million it received from Madoff's investment
advisory firm to Lion Global.
According to its website, Lion Global, which had S$28.7 billion of
assets under management as at June 30, is 70 per cent owned by Great Eastern
and 30 per cent owned by OCBC Bank.
In addition to the Lion Global suit, Mr Irving also took legal action against
six other companies including British Virgin Islands- based Quilvest Finance
Limited, accusing them of helping perpetuate what has been called the biggest
Ponzi scheme in history.
In 2008, Great Eastern, which is 70 per cent owned by OCBC, disclosed
that its indirect exposure to Madoff funds comprised S$7.7 million invested
from its Shareholders' Fund and S$56.3 million from its Life Fund. Great
Eastern has since written down its S$64 million exposure to Madoff funds.
In addition, Great Eastern also had exposure to some funds of Fairfield
Greenwich Group, a hedge fund that invested more than half of its US$14.1
billion of assets with Madoff.
Lion Fairfield Capital Management, a 65-35 joint venture between Great
Eastern subsidiary Lion Global Investors and Fairfield Greenwich Group, sold
about US$45 million of the Fairfield Sentry fund through private banking
channels to accredited investors.
The Fairfield Sentry fund is reported to have placed US$7.3 billion
solely with Madoff, 73, who is now in a federal prison in North Carolina
serving a 150- year sentence.
The lawsuit, which alleges violations of the New York Fraudulent
Conveyance Act, said that although Madoff's customers had about US$65 billion
invested through Bernard L Madoff Investment Securities, its assets in reality
were worth only a fraction of that amount.
The Lion Global lawsuit is part of an ongoing effort by Mr. Irving to
claw back, on behalf of investors, funds that were allegedly transferred
fraudulently because Madoff's bankruptcy estate's present assets aren't
sufficient to reimburse them.
In 2009, Mr Irving sued Fairfield Sentry and others in US bankruptcy
court to recover about US$3 billion in funds fraudulently transferred by
Bernard L Madoff Investment Securities over a six-year period. The case was
settled last month after the bankruptcy court awarded a US$3.054 billion
judgement against Fairfield Sentry, and ordered the feeder fund to pay US$70
million to the trustee.
The Business
Times: 17.08.2011
SINGAPORE'S top brands got their moment in the sun at the Brand Finance
Forum yesterday.
The annual 'Top 100 Singapore Brands' were released for 2011 and
underlined an interesting trend. The top 10 Singapore Brands have been valued
at US$18 billion, packing far more heft than the remaining 90 brands which have
a total combined value of US$35 billion.
The top 10 brands added an impressive 30.2 per cent to their combined
brand value, with Wilmar International contributing the most as the brand value
gained US$600 million.
Singapore Airlines remains in top position for the fourth consecutive
year at US$3.76 billion.
The top three risers by brand value growth (or percentage) amongst the
top 10 brands are Great Eastern (83%), UOB (37%) and DBS (34%).
'This is in line with the general trend around the world of financial
brands rebounding after the 2008 crisis.' Brand Finance said.
Banks, in general, reported a healthy 34 per cent growth. The telecom
sector grew 25 per cent and the real estate sector saw an enormous growth, with
13 out of 15 brands growing well.
At the other end of spectrum, Yeo Hiap Seng's iconic 'Yeo's' brand fell
from 54th place to 75th.
At yesterday's event, Srinivas Reddy, SMU's professor of marketing, and
Christian Gordon-Pullar, director of Brand Finance, was present. 'Businesses
can die but the reputation and the brand can survive', he said. Mr
Gordon-Pullar referred to Barings as an example. 'The brand still exists in
various parts of the world.'
Dr Reddy added: 'There is an urgency that the government is pushing . .
. and I see the evolution of Chinese and Indian brands within the next 10
years'.
Brand Finance is an independent brand strategy and valuation
consultancy, founded in 1996.
The Business
Times: 17.08.2011
DO bank advisers give independent advice when it comes to insurance
products? The answer is most often no but consumers often do not realise this,
as a letter published last month in The Straits Times attests.
In her letter, Jessie Loy sought independent advice from banks on
insurance products. She was dismayed to find each pushing a specific insurer -
DBS is selling Aviva; OCBC markets Great Eastern Life and so on.
In a recent published reply, Association of Banks in Singapore director
Ong-Ang Ai Boon wrote that banks have commercial tie-ups with partners, and
they 'review product offerings of their insurance partners to ensure the
products offered are suitable' for their clients. She also said that a
fact-find or needs analysis is 'diligently conducted' before any
recommendation.
The reply states the reality: Bancassurance is a commercial arrangement
between a bank and an insurer. It is a very lucrative one. This year, based on
Life Insurance Association data, bancassurance's share of new premiums rose by
10 percentage points to 34 per cent in the first half. In the period, the
channel's sales actually doubled to a record $322 million.
With this distribution arrangement, bank staff must be trained to market
and explain insurance products which can be much more complicated than a unit
trust.
Giving consumers a choice of competing products is in their interest,
but it may not make economical or business sense for the bank as it will
require greater effort and investment in training, for instance. Banks have also
been trying to streamline the products on their menu.
But Ms Ong-Ang's reply skirts a big question, which is germane to Ms
Loy's predicament. When it comes to insurance products, how important is
independent advice?
There is one argument that has been bandied around among bankers - that
the offerings of insurers are broadly similar particularly when it comes to the
choices deemed appropriate for depositors such as endowment plans. Hence, as
this argument goes, unless there is some unique proposition, there is little
need to tie up with more than one insurer.
But it is precisely because of the commoditised nature of many insurance
products that the need to compare key features becomes even more pertinent.
Among endowments, clients will want to know how a plan's guaranteed rate and
total rate of return compare with another plan, for example. What is the
insurer's track record in terms of cutting and restoring bonuses?
Among regular premium investment-linked plans, at least one insurer
levies an extra layer of annual charges that others don't. Among term
protection plans, how competitive is the annual premium? Term plans give pure
life protection for specified periods with no bonuses or investment returns.
The rub is that it really isn't easy for the client to do his or her own
research, or even to ask the right questions.
To be sure, there are significant differences, even among products that
seem so plain vanilla. Pricing of term protection plans can vary widely, for instance.
At certain age bands, the price differential can be well over 10 per cent. This
is particularly relevant in the area of mortgage insurance. Home owners or
investors who buy property should be encouraged to take up a mortgage
protection plan. But they shouldn't just take the plan that is offered by the
bank that is financing their property. When this writer was scouting for a
mortgage protection plan some years ago, she compared three offerings and took
the one that is not marketed by the mortgage provider, because it was more
attractively priced.
Even endowment products will vary. Some insurers will quote projected
returns fairly aggressively and their life fund asset allocation may reflect
that with a relatively higher allocation to equities. More conservative
insurers will quote more modest rates of return. What is the insurer's track
record in meeting projected returns? Ironically, you may well find that a
conservative insurer has cut bonuses drastically in the past. And, there is one
insurer that still strives to maintain its record of not cutting bonuses at
all. An insurer such as NTUC Income, which is a cooperative, professes to pay
out 98 per cent of surpluses, and theoretically should be able to offer
relatively more attractive rates of return.
Financial strength, fortunately, is less of an issue. All insurers have
capital well in excess of the regulatory solvency ratios. They can in fact
afford to pay out more of their surpluses as bonuses and still stay comfortably
within the required ratio.
There are of course quite a number of licensed financial advisers who
are able to distribute multiple insurers' products, and are able to do
comparisons, even including products that they don't distribute. Similar to
tied insurance agents, such advisers are typically remunerated through product
commissions. Or, they may be remunerated through an advisory fee.
Banks should as a matter of course do a client needs analysis as a first
step in the advisory products. This helps to ascertain the suitability of
products. Then, they could choose to go the extra mile with some competitive
product comparisons. That of course risks losing the customer to a competitor.
At the very least, they should tell the customer outright that they are
not independent advisers and encourage them to shop around. After all, a
long-term commitment such as insurance should be a well-considered decision.
Datamonitor
LogisticsWire: 16.08.2011
India-based The Great Eastern Shipping Company Limited, or GE Shipping,
has reported a net profit of INR1.63 billion, or INR10.65 per diluted share,
for the first quarter ended 30.06.2011, compared to INR1.71 billion, or
INR11.26 per diluted share, for the first quarter ended 30.06.2010.
GE Shipping has reported revenue of INR7.85 billion for the first
quarter ended 30.06.2011, compared to INR7.27 billion for the first quarter
ended 30.06.2010.
EBITDA for the first quarter ended 30.06.2011 was INR3.84 billion,
compared to INR3.85 billion for the first quarter ended 30.06.2010.
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.46.02 |
|
|
1 |
Rs.75.43 |
|
Euro |
1 |
Rs.66.70 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
69 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.