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Report Date : |
30.04.2012 |
IDENTIFICATION DETAILS
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Name : |
GREATSHIP ( |
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Registered
Office : |
134/A, Ocean House, Dr. |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
26.06.2002 |
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Com. Reg. No.: |
11-136326 |
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Capital
Investment / Paid-up Capital : |
Rs.2545.095 Millions |
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CIN No.: [Company Identification
No.] |
U63090MH2002PLC136326 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMG11556G |
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PAN No.: [Permanent Account No.] |
AABCG8542K |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
The Company is engaged in Offshore Oilfield Services |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
A [66] |
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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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USD 75800000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Subject is a
subsidiary of Great Eastern Shipping Company Limited, 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.
ECGC Country Risk Classification List – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 : |
134/A, Ocean House, Dr. |
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Tel. No.: |
91-22-66613000 |
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Fax No.: |
91-22-24920200 |
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E-Mail : |
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Website : |
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Corporate Office 1 / Head Office : |
101, Marathon Innova B2, Off Ganpatrao Kadam Marg, Lower
Parel (West), Mumbai 400 013, |
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Tel. No.: |
91-22-24822000 |
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Fax No.: |
91-22-24924232 |
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E-Mail : |
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Corporate Office 2 / Drilling Services Office : |
7th Floor, C- Wing, Plot No. C-25, |
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Tel. No.: |
91-22-26567100 |
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Fax No.: |
91-22-26566515 |
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E-Mail : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Bharat K. Sheth |
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Designation : |
Chairman |
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Name : |
Mr. |
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Designation : |
Managing Director |
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Name : |
Mr. P.R. Naware |
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Designation : |
Executive Director |
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Name : |
Mr. Keki Mistry |
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Designation : |
Director |
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Name : |
Mr. Berjis Desai |
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Designation : |
Director |
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Name : |
Mr. Vineet Nayyar |
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Designation : |
Director |
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Name : |
Mr. Rajiv Lall |
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Designation : |
Director |
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Name : |
Mr. Shashank Singh |
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Designation : |
Director |
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Name : |
Mr. Venkatraman Sheshashayee (W.E.F April 1, 2011) |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. Amisha Ghia |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Not Available
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in Offshore Oilfield Services |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Kalyaniwalla and Mistry Chartered Accountants |
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Address : |
Kalpataru Heritage, 127, |
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Holding Company : |
The Great Eastern
Shipping Company Limited |
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Subsidiary Companies |
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Fellow Subsidiaries |
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CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
135,000,000 |
Equity Shares |
Rs.10/- each |
Rs.1350.000
millions |
|
229,000,000 |
Preference Shares |
Rs.10/- each |
Rs.2290.000
millions |
|
|
Total |
|
Rs.3640.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
105,885,500 |
Equity Shares |
Rs.10/- each |
Rs.1058.855
millions |
|
88,000,000 |
7.5% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.880.000 millions |
|
60,624,000 |
22.5% Cumulative Redeemable Preference Share |
Rs.10/- each |
Rs.606.240
millions |
|
|
Total |
|
Rs.2545.095
millions |
Note: Of the above, 103,782,000 Equity shares are held by The Great Eastern Shipping Company Limited, the holding company. 88,000,000 7.5 % Cumulative Redeemable Preference Shares and 60,624,000 22.5 % Cumulative Redeemable Preference Shares are held by The Great Eastern Shipping Company Limited, the holding company.
As on 08.08.2011
Authorised Capital : Rs.3640.000 millions
Issued, Subscribed & Paid-up Capital : Rs.2599.695 millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2545.095 |
1741.000 |
1741.000 |
|
|
2] Share Application Money |
0.000 |
59.066 |
59.066 |
|
|
3] Employee Stock Options Oustanding |
24.203 |
23.207 |
18.880 |
|
|
4] Reserves & Surplus |
16403.120 |
10858.396 |
9689.612 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
18972.418 |
12681.669 |
11508.558 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6523.795 |
6160.048 |
5974.454 |
|
|
2] Foreign Currency Monetary Item Translation Difference
Account Gain on long term foreign currency monetary items |
0.000 |
5.701 |
6.286 |
|
|
TOTAL BORROWING |
6523.795 |
6165.749 |
5980.740 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
25496.213 |
18847.418 |
17489.298 |
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|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10088.759 |
9172.139 |
8116.535 |
|
|
Capital work-in-progress |
403.835 |
590.395 |
886.284 |
|
|
|
|
|
|
|
|
INVESTMENT |
11522.457 |
7623.321 |
8383.332 |
|
|
DEFERREX TAX ASSETS |
8.800 |
7.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
423.274
|
379.737 |
198.696 |
|
|
Sundry Debtors |
1106.502
|
1222.788 |
632.503 |
|
|
Cash & Bank Balances |
1369.548
|
1732.576 |
681.254 |
|
|
Other Current Assets |
2.210
|
0.144 |
6.738 |
|
|
Loans & Advances |
2047.567
|
139.612 |
90.195 |
|
Total
Current Assets |
4949.101
|
3474.857 |
1609.386 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
364.580 |
351.023 |
313.188 |
|
|
Other Current Liabilities |
852.973
|
1571.358 |
1190.049 |
|
|
Provisions |
259.186
|
97.913 |
3.002 |
|
Total
Current Liabilities |
1476.739
|
2020.294 |
1506.239 |
|
|
Net Current Assets |
3472.362
|
1454.563 |
103.147 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
25496.213 |
18847.418 |
17489.298 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7598.715 |
6651.464 |
2413.090 |
|
|
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Other Income |
84.141 |
65.480 |
101.750 |
|
|
|
TOTAL |
7682.856 |
6716.944 |
2514.840 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating Expenses |
4848.713 |
4453.631 |
1141.907 |
|
|
|
Administrative and other Expenses |
558.212 |
518.608 |
256.760 |
|
|
|
TOTAL |
5406.925 |
4972.239 |
1398.667 |
|
|
|
|
|
|
|
|
|
PROFIT/[LOSS]
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2275.931 |
1744.705 |
1116.173 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
303.399 |
337.658 |
278.884 |
|
|
|
|
|
|
|
|
|
|
PROFIT/[LOSS]
BEFORE TAX, DEPRECIATION AND AMORTISATION |
1972.532 |
1407.047 |
837.289 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
519.575 |
527.003 |
328.936 |
|
|
|
|
|
|
|
|
|
|
PROFIT / [LOSS]
BEFORE TAX |
1452.957 |
880.044 |
508.353 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
269.201 |
55.863 |
2.100 |
|
|
|
|
|
|
|
|
|
Less |
Prior Period Items |
0.000 |
2.422 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / [LOSS]
AFTER TAX |
1183.757 |
821.759 |
506.253 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1211.318 |
599.143 |
252.890 |
|
|
|
|
|
|
|
|
|
Less |
Transfer to Tonnage Tax Reserve Account under section
115VT of the Income-tax Act, 1961 |
200.000 |
120.000 |
160.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
120.000 |
- |
- |
|
|
|
Proposed Dividend on Preference Shares |
- |
76.824 |
- |
|
|
|
Interim Dividend on Preference Shares |
66.000 |
- |
- |
|
|
|
Proposed Dividend on Equity Shares |
211.771 |
- |
- |
|
|
|
Tax on Dividend |
45.316 |
12.760 |
- |
|
|
BALANCE CARRIED
TO THE B/S |
1751.988 |
1211.318 |
599.143 |
|
|
|
|
|
|
|
|
|
|
Earnings/[Loss]
Per Share (Rs.) |
12.30 |
8.50 |
6.41 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
15.41
|
12.23 |
20.13 |
|
|
|
|
|
|
|
(PBT/Sales) |
(%) |
19.12
|
13.23 |
21.07 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.66
|
6.96 |
5.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.07 |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.42
|
0.64 |
0.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.35
|
1.72 |
1.07 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
No |
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8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last two years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
No |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
Financial
Highlights
The Company has achieved a profit after tax of Rs. 1183.800 millions on a
stand-alone basis and Rs. 2157.100 millions on a consolidated basis for the
year ended March 31, 2011
Share Capital
The authorized share capital of the Company was increased from Rs.
2230.000 millions to Rs. 3640.000 millions by creation of additional 1410,00,000
preference shares by approval of the shareholders at their meeting held on
February 9, 2011. The present authorized share capital of the Company is Rs.
3640000000 divided into 135000000 equity shares of Rs. 10 each and 229000000
preference shares of Rs. 10 each.
During the year, on March 9, 2011, 17682000 equity shares were allotted
to ‘The Great Eastern Shipping Company Limited’ under rights issue for a price
of Rs. 180 per share (face value of Rs. 10 each and premium of Rs. 170 each).
Further, 6,06,24,000 preference shares were allotted to ‘The Great Eastern
Shipping Company Limited’ on March 9, 2011, on preferential basis at a price of
Rs. 30 per share (face value of Rs. 10 each and premium of Rs. 20 each).
The total paid up capital of the Company as on date is Rs. 2545.095
millions comprising of 10,58,85,500 equity shares of Rs. 10 each and
14,86,24,000 preference shares of Rs. 10 each.
Draft Red Herring
Prospectus
As reported earlier, the Company had filed a Draft Red Herring
prospectus (DRHP) with Securities and Exchange Board of India (SEBI) on May 12,
2010 for its proposed public issue of 22,050,875 equity shares with a face
value of Rs 10 each. However, in light of the capital market conditions, the Company,
in consultation with the Book Running Lead Managers, decided not to proceed
with the proposed public issue and in February 2011 withdrew the DRHP filed
with SEBI.
Subsidiaries
The Company has 8 wholly owned subsidiaries as under (together referred
to as ‘Subsidiaries’):
1. Greatship Global Holdings Limited,
2. Greatship Global Energy Services Pte. Limited,
3. Greatship Global Offshore Services Pte. Limited,
4.
5. Greatship Global Offshore Management Services Pte. Limited,
6. Greatship Subsea Solutions Australia Pty Limited,
7. Greatship (
8. Greatship DOF Subsea Projects Private Limited, Mumbai (GDOF)
GGES and GGOS are wholly owned subsidiaries of GGHL.
During the year, GGOS incorporated two subsidiaries in
GSS and GSA have been incorporated to commence and focus on the offshore
construction/ subsea services business. GMS would be providing ship management
services.
The Company has till date invested Rs. 10378.100 millions in its
Subsidiaries. Subsidiaries of the Company are expected to make substantial
contribution to the overall growth for the Group.
Debt Fund Raising
Over last few financial years, the Company has been raising debt for its
large expansion programme. During the current financial year, the amount of
debt went up from Rs. 6160.000 millions at the end of FY 10 to Rs. 6523.700
millions at the end of FY 11. The consolidated debt went up from Rs. 17012.700
millions for FY 10 to Rs. 23416.100 millions for FY 11. The gross debt:equity
ratio as on March 31, 2011 was 0.34:1 on standalone basis and 1.51:1 on
consolidated basis.
Management
Discussion And Analysis
Company
Performance
In FY 11, the Company recorded a total income of Rs. 7682.900 millions
(previous year Rs. 6716.900 millions) on a standalone basis and Rs. 9136.200
millions (previous year Rs. 7630.900 millions) on consolidated basis. The
Company earned a PBIDT of Rs. 2275.900 millions (previous year Rs. 1744.700
millions) on a standalone basis and Rs. 4550.700 millions (previous year Rs.
2770.400 millions) on consolidated basis.
Offshore Logistics
Market Trend and
Analysis
FY11 was a challenging year for offshore oilfield services in general.
While the year started with a burgeoning sense of optimism consequent to
stabilised oil prices, a recovering global economy and announcements of
increased E and P expenditure, the implicit promise did not translate into
either increased utilization or enhanced charter rates. Brief spikes in
activity or rates failed to sustain, both over time or across regions.
In comparison to other offshore markets, the Brazilian market has
performed well. During the year, more than 27 vessels were contracted by
Petrobras on terms ranging from 4 – 8 years. The tempo is expected to
strengthen further with Petrobras planning to increase domestic production of
oil and gas from 2.08m boe/day in 2010 to 5.06m boe/day by 2020. To do this,
Petrobras is expected to add another 200 vessels to its existing in-chartered
fleet of 250 vessels in the next 3-4 years.
Indian state-owned oil company, Oil and Natural Gas Corporation (“ONGC”)
had a quiet year. Indian offshore logistic providers found few business
opportunities within
The
siphoning off of vessels by
The South-East Asian market continued to discourage. While national oil
companies and IOCs continued to award contracts sporadically during the course
of the year, day rates remained soft.
The Middle East market remained steeped in gloom, encouraging
traditional
Strangely, even the West African market seemed downcast this year, with
issues of piracy and political instability
taking front stage.
subdued, with AHTSVs neither gaining nor losing, and PSV values
improving slightly.
New building activity was largely dormant, with most owners waiting for
a little more certainty in the markets before committing their funds. Overall,
FY11 was not a year that most offshore vessel owners would like to remember, or
to repeat.
Company Performance
During FY11, the Company or its Subsidiaries extended vessel operations
into South East Asia, Australia and
During the earlier part of the financial year, thirteen out of the
Company’s (including Subsidiaries) fourteen operating vessels were covered
under term charters with various reputed clients. During the year, one PSV and
three AHTSVs commenced new term charters after completion of their previous
contracts. Of the three newly delivered ROVSVs which joined the operating
fleet, one won a long term contract in
Fleet Changes
As on March 31, 2011, the operating fleet of the Company (including
Subsidiaries) stood at seventeen vessels which includes four Platform Supply
Vessels (PSVs), seven Anchor Handling Tug cum Supply Vessels (AHTSVs), three
Multipurpose Platform Supply and Support Vessels (MPSSVs) and three ROV Support
Vessels (ROVSVs). During the year , the Company along with its subsidiaries
took delivery of the following vessels:
1. MPSSV ‘Greatship Mamta’ on July 20, 2010
2. ROVSV ‘Greatship Ramya’ on August 26, 2010
3. MPSSV ‘Greatship Manisha’ on September 17, 2010
4. ROVSV ‘Greatship Rohini’ on December 10, 2010
5. ROVSV ‘Greatship Rashi’ on March 14, 2011
During the year ,
The total new building orders for the Company (including Subsidiaries)
are for 7 vessels consisting of two Multipurpose Support Vessels (MSVs) in
India, three ROVSVs in Sri Lanka and two 150 TBP AHTSVs in Singapore. The asset
profile and fleet order book are enclosed.
Outlook For
Offshore Logistics Market
With stabilization of oil prices, a growing Australian market, and a
hungry Brazilian market absorbing tonnage swiftly, the global offshore market
gives rise to optimism. There is, however, a certain amount of apprehension due
to the oversupply of certain asset classes, strong cabotage regulations in
certain pockets of South East Asia and rising security issues in
Early indications in the
The Indian market is expected to offer more opportunities post monsoon
FY12.
The Latin American market holds a lot of optimism with Petrobras
reiterating its commitment towards continued investments. It is expected to continue
absorbing offshore vessels to support the huge investments already made in and
committed to the deep waters off the Brazilian coast.
Drilling Services
Market Trend And
Analysis
FY11 will be remembered as the year of the Deepwater Horizon incident,
which posed a huge set back to a gradually recovering market. Deep water
drilling in the
Jack Up Rig (JUR) markets in FY11 bifurcated sharply. Older rigs (pre
2000 built) found markets around the world turning hostile, resulting in
sharply reduced utilisation and charter rates in the US$ 65,000 – US$ 75,000
range. Demand for modern rigs (post 2000 built) strengthened, with utilisation
rising past the 80% mark and charter rates
stabilising around US$ 120,000 per day.
Given the above, many drilling contractors reluctantly stacked their
older rigs during the year.
During the second half of FY11, increased activity in Mexico, Brazil,
West Africa and South East Asia lent the market much needed optimism, leading
to a flurry of new build orders (31 in 6 months) being placed at leading rig
building yards across the world. Some of these were by speculators, but most
were by established drilling companies focused on replacing their ageing
fleets. This led to new build prices moving up steadily and settling at about
US$ 180mfor a 350’ modern JUR.
Company
Performance
JUR Greatdrill Chitra, owned by
JUR Greatdrill Chetna continued under the current three year contract
with ONGC and since the beginning of the
Charter drilled and completed 3 wells successfully to deeper depths. The
rig completed the year without any recordable incident/ accident.
Fleet Changes
GGES purchased bareboat chartered JUR Greatdrill Chetna from Mercator in
early March 2011.
GGES also placed a new build order for a 350’ JUR (Le Tourneau Super
116E) with Lamprell Energy in UAE, for delivery inQ3FY 13 (Q4 calendar 2012).
Outlook For
Drilling Market
Crude oil prices stayed stable through the year with a sharp increase in
the last quarter due to the political situation in North Africa and the
With oil prices at above $100 per barrel, E and P companies seem to be
accelerating both their exploration and production programmes, resulting in increasing
demand for drilling rigs. This increased drilling activity, however, seems to
be impacting only the modern, more powerful rigs.
Q4 FY11 saw increased contracting and increased day rates in the JUR
market, which is hoped will continue through the following years.
Current concerns include the geo-political unrest in North Africa and
the
Market Trend and Analysis
FY11 was a loss making year for many mid-sized subsea services companies
across the world. Utilisation of subsea vessels touched all time lows (some
categories as low as 15%) and many projects, though visible, remained elusive
as both IOCs and NOCs allowed uncertainty to stay their hands through the year.
Desperation led to many companies ‘buying’ work, doing projects at or
lower than cost.
The large subsea SURF companies did not suffer as badly, as past
order-books allowed them to coast through the year without visible pain.
Maintenance projects continued in many parts of the world, albeit
sporadically.
The fourth quarter saw some recovery with
The S and P market and new build market for subsea assets remained
somnolent. Though some desperate owners tried to down size their fleets, there
were not many takers.
There was some interesting Mand Aactivity as companies consolidated with
the objective of strengthening previously week balance sheets and filling
largely empty backlogs.
Company
Performance
The Company’s newly incorporated subsidiaries Greatship Subsea Solutions
Singapore Pte. Limited (GSS) and Greatship Subsea Solutions Australia Pty
Limited (GSA) would be specializing in four sub segments within the subsea
vertical, namely construction and decommissioning support, inspection,
maintenance and repair, geotechnical and geophysical services and well
construction services. This business vertical had one asset in subsea –
Greatship Mamta which carried out three projects, one in
Outlook For Bubsea
Market
Worldwide indicators show signs of increased activity from second half
2011, which are further expected to improve in 2012 and return to normal levels
of activity in later 2012 and 2013. For the period 2013 onwards, indications
are for a significant uplift in activity surpassing even the highs of
2007-2008. The reasons for this include;
1. Oil prices are returning to levels which encourage E and P spending
across all sectors of the market. In addition to the obvious spend on new
projects from the majors the strong oil price has the following additional
benefits;
a. Strong oil prices allow small to mid cap oil companies to exploit
smaller and more marginal fields. These projects provide significant
opportunities.
b. The strengthening oil price encourages extensions to field life
cycles which increases brown field construction and IMR opportunities
2. The combination of legislative pressures and reduced contractor costs
/ increased capacity has spurred a
significant increase in decommissioning projects worldwide
3. The emergence of Asia as the new world economic power and its ever
increasing demand for energy has underpinned several ‘mega’ LNG projects in
Australia, PNG, Indonesia amongst others. These projects have a different
economic model than oil and are usually based on 30-50 year life spans. The gas
contracts are in place and indicators show Australasia overtaking
4. Recent mergers and acquisitions in the subsea space (Acergy – SS7,
Fugro – TS Marine etc) are creating opportunities for emerging subsea players
who can deliver solutions quicker and at a lower cost. This is especially true
in the decommissioning and SURF markets with the mid cap operators.
For all the above reasons the improved prospects in subsea, especially
in
Contingent Liabilities
: [As on 31.03.2011]
a) Guarantees given by banks Rs.525.945 millions (previous year -
Rs.704.670 millions).
b) Corporate guarantees given on behalf of subsidiary companies
Rs.21397.071 millions (previous year - Rs.16235.804 millions).
c) Customs duty in respect of vessel provisionally cleared against
security bond furnished by the company Rs.88.230 millions (previous year- Rs.
88.230 millions).
d) Service tax claimed for services provided by drilling units under the
head “Supply of Tangible Goods for use” and the services being consumed by the
seabed of the Continental Shelf of India, amounting to Rs.272.452 millions
(previous year – Rs. Nil). However, the Company is of the view that in the
unforeseen circumstances that the demand is sustained, the same would be
recoverable from the service receiver under the terms of contract. For the
similar period the company has also received notice from The Assistant
Commissioner of Service Tax in relation to the Central Excise Revenue Audit
(CERA) objection for payment of service tax on the services provided by the
drilling units.
e) Custom duty demand for Marine Gas Oil to be treated as Light Diesel
Oil during conversion of the vessel from a foreign-run vessel to a coastal-run
vessel, disputed by the company estimated Rs.1.185 millions (previous year -
Rs. Nil).
FIXED ASSETS :
WEB DETAILS
Press Release
Greatship’s subsidiary
cancels a Shipbuilding Contract for one Multipurpose Support Vessel
January 13, 2012 – MUMBAI
Greatship Global
Offshore Services Pte. Limited (GGOS), a Singapore incorporated subsidiary of the
Company’s subsidiary - Greatship (India) Limited (GIL), had signed contracts
for two new building Multipurpose Support Vessels (Builder’s Yard No. 26775 and
26784) with Mazagon Dock Limited, Mumbai in September 2007 .
GGOS had earlier cancelled
the shipbuilding contract for one of these Multipurpose Support Vessels, with
Builder’s Yard No. 26784.
GGOS has now
cancelled the shipbuilding contract for the second Multipurpose Support Vessel,
with Builder’s Yard No. 26775. The said cancellation is disputed by the Yard.
With this
cancellation, the order book of GIL and its subsidiaries stands at four vessels
and one 350 feet jack up rig in
Greatship takes
delivery of one Anchor Handling Tug cum Supply Vessel (AHTSV)
January 06, 2012 - mumbai
Greatship (
Greatship Vidya is a
Class II DP vessel equipped with Fire Fighting Capability and has been built
complying with the new SPS Code 2008, capable of supporting offshore exploration
and production.
With the delivery of
Greatship Vidya, GIL and its subsidiaries currently own and operate four PSVs,
eight AHTSVs, three MPSSVs, three ROVSVs and two jack up rigs. GIL and its
subsidiaries also have an order book of five vessels - one MSVs in India, three
ROVSVs in Sri Lanka and one 150 TBP AHTSVs in Singapore and one 350 feet jack
up rig in Dubai.
Greatship’s
subsidiary cancels a Shipbuilding Contract for one Multipurpose Support Vessel
November 09, 2011 - Mumbai
Greatship Global
Offshore Services Pte. Limited (GGOS), a Singapore incorporated subsidiary of
Greatship (India) Limited (GIL), which is a subsidiary of The Great Eastern
Shipping Company Limited, had signed contracts for two new building
Multipurpose Support Vessels (Builder’s Yard No. 26775 and 26784)with Mazagon
Dock Limited, Mumbai in September 2007.
GGOS has now
cancelled the shipbuilding contract for one of these Multipurpose Support
Vessels, with Builder’s Yard No. 26784. With this cancellation, the order book
of GIL and its subsidiaries stands at six vessels and one 350 feet jack up rig
in
Greatship Takes
Delivery of a Platform/ROV Support Vessel (ROVSV)
March 14, 2011 – Mumbai
Greatship (
Greatship Rashi is a
Class II DP vessel and has been built complying with the new SPS Code 2008 and
Environmental Protection and Crew Comfort notations of Lloyd's Register of
Shipping, capable of supporting offshore exploration and production.
Greatship Rashi is
specially fitted out for supporting 2 Work Class ROVs, 35 Ton deep sea winch
and A frame and 10T offshore crane.
With the delivery of
Greatship Rashi, GIL and its subsidiaries currently own and operate four PSVs,
seven AHTSVs, three MPSSVs, three ROVSVs and two jack up rigs. GIL and its
subsidiaries also have an order book of seven vessels - two MSVs in India,
three ROVSVs in Sri Lanka and two 150 TBP AHTSVs in Singapore and one 350 feet
jack up rig in Dubai.
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.52.68 |
|
|
1 |
Rs.85.12 |
|
Euro |
1 |
Rs.69.38 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
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.