MIRA
INFORM REPORT
|
Report Date : |
09.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
MERCATOR LINES LIMITED |
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Registered
Office : |
3rd Floor, Mittal Tower, B-Wing, Nariman Point,
Mumbai-400021, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
24.11.1983 |
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Com. Reg. No.: |
11-031418 |
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Capital
Investment / Paid-up Capital : |
Rs.244.892 Millions |
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CIN No.: [Company Identification
No.] |
L63090MH1983PLC031418 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM23856A |
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PAN No.: [Permanent Account No.] |
AAACM5007A |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
The company engaged in three segment shipping, offshore and coal
mining, trading, and logistics. |
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No. of Employees
: |
147 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (49) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 41050000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. There
appears some losses being incurred by the company in the current year i.e.
2010-11. However, networth appears to be satisfactory. Trade relations are
reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
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 : |
3rd Floor, Mittal Tower, B-Wing, Nariman Point,
Mumbai-400021, |
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Tel. No.: |
91-22-66373333/ 40373333 |
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Fax No.: |
91-22-66373344 |
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E-Mail : |
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Website : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. H.K. Mittal |
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Designation : |
Executive Chairman |
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Name : |
Mr. Atul J. Agarwal |
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Designation : |
Managing Director |
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Name : |
Mr. Manohar Bidaye |
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Designation : |
Independent and Non-executive Director |
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Name : |
Mr. Anil Khanna |
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Designation : |
Independent and Non-executive Director |
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Name : |
Mr. M. G. Ramkrishna |
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Designation : |
Independent and Non-executive Director |
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Name : |
Mr. K. R. Bharat |
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Designation : |
Independent and Non-executive Director |
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Name : |
Mr. Kapil Garg |
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Designation : |
Non Executive Director |
KEY EXECUTIVES
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Audit Committee : |
Manohar Bidaye Chairman M. G. Ramkrishna Member K. R. Bharat Member Atul J. Agarwal Member |
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Shareholders Grievance Committee
: |
Manohar Bidaye Chairman K. R. Bharat Member Atul J. Agarwal Member |
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Name : |
Ms. Suchita Shirambekar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Category of Shareholders |
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(A) Shareholding of Promoter and Promoter Group |
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|
80077816 |
32.70 |
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|
18406250 |
7.52 |
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98484066 |
40.22 |
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Total shareholding of Promoter and Promoter Group (A) |
98484066 |
40.22 |
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(B) Public Shareholding |
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|
690400 |
0.28 |
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|
2093880 |
0.86 |
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1000 |
0.00 |
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|
41359648 |
16.89 |
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|
44144928 |
18.03 |
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17272221 |
7.05 |
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|
68899481 |
28.13 |
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10015564 |
4.09 |
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|
2482933 |
1.01 |
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166150 |
0.07 |
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|
4786 |
0.00 |
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450 |
0.00 |
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270600 |
0.11 |
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3150894 |
1.29 |
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102263079 |
41.76 |
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Total Public shareholding (B) |
146408007 |
59.78 |
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Total (A)+(B) |
244892073 |
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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-- |
-- |
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-- |
-- |
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Total (A)+(B)+(C) |
244892073 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
The company engaged in three segment shipping, offshore and coal
mining, trading, and logistics. |
GENERAL INFORMATION
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No. of Employees : |
147 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institution: |
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Auditors : |
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Name : |
Contractor, Nayak and Kishnadwala Chartered Accountants |
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Promoter Group
Companies / Companies in which Director(s) is/are substantially interested : |
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CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
350000000 |
Equity Shares |
Rs.1/- each |
Rs.350.000 Millions |
|
20000000 |
Preferences Shares |
Rs.100/- each |
Rs.2000.000 Millions |
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Total |
|
Rs.2350.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
244892073 |
Equity Shares |
Rs.1/- each |
Rs.244.892
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
244892073 |
Equity Shares |
Rs.1/- each |
Rs.244.892
Millions |
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|
89, 00,000 shares of Rs.1/- allotted on exercise of option of conversion of 89,00,000 warrants issued on preferential basis during the year. |
Rs.1/- each |
Rs.8.900 |
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 |
244.892 |
235.992 |
235.992 |
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2] Share Application Money |
259.600 |
0.000 |
166.725 |
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3] Reserves & Surplus |
9758.928 |
10303.415 |
10709.525 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
10263.420 |
10539.407 |
11112.242 |
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LOAN FUNDS |
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1] Secured Loans |
12445.407 |
13418.656 |
12574.211 |
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2] Unsecured Loans |
1000.000 |
1315.980 |
1555.170 |
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TOTAL BORROWING |
13445.407 |
14734.636 |
14129.381 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
23708.827 |
25274.043 |
25241.623 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
16996.893 |
18089.270 |
20210.229 |
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Capital work-in-progress |
0.000 |
0.000 |
491.413 |
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ASSET HELD FOR DISPOSAL |
0.000 |
0.000 |
2606.057 |
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INVESTMENT |
61.218 |
585.634 |
434.280 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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Inventories |
234.864
|
242.155
|
108.201 |
|
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Sundry Debtors |
1607.083
|
1189.640
|
2276.328 |
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Cash & Bank Balances |
4427.311
|
6684.020
|
4595.827 |
|
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Other Current Assets |
0.000
|
0.000
|
0.000 |
|
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Loans & Advances |
7345.100
|
6694.145
|
6843.305 |
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Total
Current Assets |
13614.358
|
14809.960 |
13823.661 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
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Sundry Creditors |
475.252
|
641.119 |
343.801 |
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Other Current Liabilities |
6436.601
|
7566.903
|
11794.280 |
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Incomplete Voyages (Net) |
21.758
|
(66.583)
|
35.441 |
|
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Provisions |
30.031
|
69.382
|
150.495 |
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Total
Current Liabilities |
6963.642
|
8210.821
|
12324.017 |
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Net Current Assets |
6650.716
|
6599.139
|
1499.644 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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|
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TOTAL |
23708.827 |
25274.043 |
25241.623 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
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SALES |
|
|
|
|
|
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|
Shipping Income |
6372.408 |
5762.870 |
11377.002 |
|
|
|
Other Income |
17.539 |
45.077 |
450.584 |
|
|
|
Profit / (Loss) on |
1.841 |
(0.300) |
3.650 |
|
|
|
Profit / (Loss) on |
(0.324) |
1191.407 |
(0.117) |
|
|
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TOTAL (A) |
6391.464 |
6999.054 |
11831.119 |
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Ship Operation Expenses |
5018.447 |
4182.367 |
7020.832 |
|
|
|
Administrative and Other Expenses |
287.240 |
387.670 |
476.614 |
|
|
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TOTAL (B) |
5305.687 |
4570.037 |
7497.446 |
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|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1085.777 |
2429.017 |
4333.673 |
|
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|
|
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|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
859.903 |
949.397 |
1018.397 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
225.874 |
1479.620 |
3315.276 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1166.255 |
1371.163 |
1436.562 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
(940.381) |
108.457 |
1878.714 |
|
|
|
|
|
|
|
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|
Less |
TAX (H) |
40.000 |
44.500 |
67.500 |
|
|
|
|
|
|
|
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|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
(980.381) |
63.957 |
1811.214 |
|
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|
|
|
|
|
|
Short Provision for tax of earlier year |
0.674 |
0.000 |
(0.194) |
|
|
|
|
|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1174.903 |
2862.983 |
2339.422 |
|
|
|
|
|
|
|
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|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
10.000 |
188.000 |
|
|
|
Transfer to Debenture Redemption Reserves |
0.000 |
1687.000 |
390.000 |
|
|
|
Transfer to Tonnage Tax Reserve |
0.000 |
0.000 |
570.000 |
|
|
|
Dividend on Preferences Shares |
0.000 |
0.000 |
0.000 |
|
|
|
Dividend on Equity Shares (On Conversion of FCCB / Warrants) |
0.000 |
0.000 |
1.206 |
|
|
|
Proposed Dividend on Equity Shares |
0.000 |
17.198 |
117.996 |
|
|
|
Tax on Dividend |
0.000 |
7.839 |
20.258 |
|
|
BALANCE CARRIED
TO THE B/S |
195.196 |
1174.903 |
2862.983 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Shipping Income |
NA |
1746.009 |
3814.930 |
|
|
|
Other Income |
NA |
418.627 |
224.456 |
|
|
TOTAL EARNINGS |
NA |
2164.636 |
4039.386 |
|
|
|
|
|
|
|
|
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|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
NA |
115.387 |
125.765 |
|
|
|
Capital Goods (including CWIP) |
Na |
1029.132 |
10234.333 |
|
|
TOTAL IMPORTS |
NA |
1144.519 |
10360.098 |
|
|
|
|
|
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|
Earnings/loss
Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
(4.12) |
0.27 |
7.68 |
|
|
|
- Diluted |
(4.12) |
0.27 |
7.54 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
1241.510 |
1290.710 |
|
Total Expenditure |
|
992.350 |
1027.760 |
|
PBIDT (Excl OI) |
|
249.160 |
262.950 |
|
Other Income |
|
5.460 |
24.680 |
|
Operating Profit |
|
254.620 |
287.630 |
|
Interest |
|
237.250 |
279.430 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
17.370 |
8.200 |
|
Depreciation |
|
291.890 |
299.290 |
|
Profit Before Tax |
|
(274.520) |
(291.090) |
|
Tax |
|
10.000 |
5.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(284.520) |
(296.000) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(284.520) |
(296.090) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(15.34)
|
0.91
|
15.31 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(14.76)
|
1.88
|
16.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(3.07)
|
0.33
|
5.52 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.09)
|
0.01
|
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.99
|
2.18
|
2.38 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.96
|
1.80
|
1.12 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL
HIGHLIGHTS
On consolidated basis, a milestone was achieved during the year with consolidated income from operations crossing the Rs.25000.000 millions mark. The income from operations was at Rs.28290.000 millions as against Rs.18090.000 millions in the previous year; registering a growth of 56%. The operating profit for the year was Rs.6210.000 millions against previous year’s Rs.6560.000 millions
After providing for the minority interest of Rs.390.000 millions (previous year Rs.510.000 millions) the net profit was recorded at Rs.470.000 millions as against Rs.530.000 millions in the previous year. Scale up in Coal mining and procurement activities boosted revenues of the Company. However, overall performance was affected due to lower realizations of shipping freight. Exceptional items in the nature of loss on account of write offs against sale of Rig and Dry docking expenses also added to lower profits.
On a standalone basis, the income from operations for the year under review was Rs.6390.000 millions as against Rs.5810.000 millions in the previous year, registering a growth of 10% for the year. The Company suffered a loss of Rs.940.000 millions against as Profit before Tax (PBT) of Rs.110.000 millions in the previous year. Loss after provision of tax was Rs.980.000 millions against Net Profit of Rs.60.000 millions in the previous year. This was mainly on account of dry docking of two vessels on which an amount of Rs.150.000 millions was spent besides loss of revenue from those vessels during the period of dry-dock, coupled with lower Time Charter Yield in dredger division. Lower realization of shipping freight further aggravated the loss. Dredger deployment has improved substantially since the year end, and The Company expects better standalone performance in the coming years.
EXPANSION AND
FINANCE
During the year one aframax; two panamax and one post panamax vessels were acquired at an aggregate cost of Rs.5425.000 millions (equivalent of USD 121.50 million). A Mobile Offshore Production Unit (MOPU) was acquired and refurbished and a suezmax was converted into a Floating Storage Offshore Unit (FSO) collectively called FPU. The total cost incurred for FPU as at March 31, 2011 was Rs.8050.000 millions.
The aframax has been deployed gainfully since its acquisition. Panamaxes/ post-panamaxes too were deployed immediately upon their acquisitions on long term charter ranging a period of 35 to 74 months. The MOPU and the FSO have been deployed on a nine-year contract. The acquisition of key assets such as these proves the Company’s foresight and its ability to monetise future opportunities. A mix of internal resources and debts financed these expansions.
Towards the end of the year, The Company issued Un- Secured Redeemable Non-convertible Debentures of an aggregate amount of Rs.1000.000 millions on private placement basis, which have been listed on the Bombay Stock Exchange.
The Company would consider raising of funds for general corporate purposes including capital expenditure, working capital requirements, strategic investments by way of issue of securities (whether in India and/or abroad) at appropriate time.
BUSINESS
OPERATIONS AND FUTURE OUTLOOK
The Company has well diversified business segments i.e. Shipping (Tanker and Dry bulk); Dredging; Oil and Gas; Coal (Mines and Procurement); and Logistics. While the Coal division performed extremely well, the Dry bulk and Logistics division performed satisfactorily. The tanker and dredging divisions were affected due to subdued market conditions. Exploration activities have commenced on two oil blocks that the Company owns. The FPU (MOPU and FSO) has been commissioned successfully subsequent to the end of the year. The commissioning of the FPU project is expected to add substantial revenue from current year. During the year; the Jack-up Rig was sold.
Going forward, performance of Coal mining and procurement is estimated to scale up further. While the Dredging Division has good improvements in terms of order book, Dry Bulk and Logistics are expected to continue to perform satisfactorily except in the event of any downturn in the world economy. The tanker division may remain soft with exceptional spikes.
MANAGEMENT
DISCUSSION
THE SHIPPING
INDUSTRY
The shipping industry is prone to cyclicality. It is influenced by socio-economic scenarios, natural calamities, government regulations and availability of natural resources globally. The shipping industry can be broadly classified into:
Wet bulk carriers: Also known as oil tankers, they transport crude oil and other petroleum products
Dry bulk carriers: They transport iron ore, steel, coal, and other bulk commodities
The global scenario
Over 90% of global trade is conducted by ships. The total world merchant fleet grew 7%, touching 1,276 mn tones in 2010. It is further expected that global seaborne trade will reach 11.5 billions tonnes and 16.04 billions tonnes by 2020 and 2031, respectively. The global shipping industry is regulated by the International Maritime Organization (Source: Review of Maritime Transport, UNCTAD). There are about 50,000 merchant ships trading in multiple cargoes globally, generating over USD 380 bn in freight rates during the year (Source: PwC).
The Indian scenario
Over the years, bilateral trade between
SHIPPING INDUSTRY
SEGMENTS
Wet Bulk Carriers
A strong link exists between demand of tankers and demand of
oil. Crude oil is the single largest commodity in international trade. Tankers
basically transport crude oil from ports near production fields to ports near
refineries. Global crude oil demand has grown over the last five years, which
is mainly driven by developed economies. The share of US in the global crude
oil demand is 26.4%, and of
With growth in the economy, urbanization, population and
disposable incomes, and a change in lifestyle patterns, oil consumption has
increased in
Though the shipping market witnessed spikes in 2010, the
tanker freight rates remained subdued during the year, on account of sluggish
demand for crude oil and refined products combined with large supply of new
vessels. The shipping rates remained volatile during the year due to
fluctuating demands from countries all over the world, crisis in MENA region
(Middle East and
The Baltic Clean Tanker Index opened at 700 points in April 2010, reached a high of 950 points by midyear in July 2010. The index then slumped to the year’s low of 500 points in October 2010. Post this it was extremely volatile till March 2011 when it closed at around 900 points. The Baltic Dirty Tanker Index opened at 950 points in April 2010, reached a high of 1350 points in May 2010. Post this it was extremely volatile till February 2011, when it reached a low of 430 points. The index then closed at 900 points in March 2011.
Dry Bulk Carriers
Dry bulk ships are used to transport dry bulk commodities
like steel, iron ore, coal, (thermal/coking), other bulks commodities and
grains. Demand for dry bulk commodities is likely to remain strong in the
coming years, mainly driven by
Dry bulk freight rates remained range bound during the year,
on account of fluctuations in iron ore imports by
The Baltic Dry Index opened at 3000 points in April 2010, reached a high of 4100 points in May 2010. Post this it was extremely volatile till February 2011, when it reached a low of 1100 points. The index thereafter closed at 1600 points in March 2011.
Subject operates a younger dry bulk fleet of vessels, and a large fleet of operator geared vessels which provides us with an added advantage as they can be easily used at ports with poor infrastructure. They specialize in providing end-to-end logistic solutions from load port to point of use.
With the gradual revival in global trade of dry and wet commodities post the recession, the shipping industry is expected to witness an increase in demand in the next few years. With a modern fleet of vessels, they are well prepared to capitalize on the shipping industry opportunities.
Oil and Gas
The OPEC countries have enjoyed monopoly production of oil since
mid 70s, and hence charge a premium in oil trading. Oil, being the basic fuel
required in various industries and for transportation, has extensive forward
linkages with the economy. Hence, countries all over the world have begun to
extensively undertake oil exploration projects that would help them secure
their natural resources needs. Surveys In India, the oil and gas sector is one
of the core industries.
Oil companies are heavily investing in equipment and are increasing their capacities.. The E&P spending was estimated to rise by 14% in 2011 and forecasted to rise 8% in 2012, and 7% in 2013.
The oil and gas value chain comprises upstream (exploration,
development and production) and downstream (refining, processing and
distributing) activities which are carried out at onshore and offshore sites.
The upstream oil and gas segment is vital for country’s energy needs and to
accelerate the growth momentum in the years to come. In recent times,
Countries all over the world are increasingly undertaking
refining projects. High oil prices has led to opportunities in the Oil and Gas
sector for oil major companies as well as small independent companies. Oil
majors have developed hostile environment and deep terrain at large E and P
cost to extract new oil. Small independent oil companies have been able to
develop marginal field which previously were uneconomical. Subject has adopted
later approach whereby They have taken prospective acreage at
Coal
As per the graph below, the world’s consumption of coal has been on an uptrend since 2005, and is expected to continue in the future.
Coal prices have risen during the year, as coal is the
primary fuel required by power and steel plants in
Dredging
It is expected that the cargo handling capacity of Indian
ports would increase to 1,855 MT by 2012 from the present 758 MT. During the
11th Five Year Plan (2007–12) about USD 8.5 bn is expected to be invested in
the ports sector (Source: Planning Commission of India). The demand for dredging
continues to grow in
Subject has consolidated its dredging business and having maintained a strong track record with its customers, the Company has secured a good order book with repetitive orders. With new ports coming up and existing port’s dredging requirements increasing, Subject is poised to capitalize on the opportunity available in the upcoming dredging industry.
REVIEW OF
OPERATIONS OF SUBSIDIARIES
MERCATOR
INTERNATIONAL PTE. LTD. (MIPL ) – (WHOLLY OWNED OVERSEAS SUBSIDIARY - WOS)
MIPL was incorporated in
During the year under review, it achieved a turnover of about ` 115 cr equivalent of USD 25.263 million (as against Rs.833.700 millions equivalent to USD 17.605 millions in the previous year) with a net profit of Rs.470.000 millions equivalent of USD 10.365 millions (previous year net loss of Rs.86.300 millions equivalent of USD 1.82 millions) on standalone basis; that is excluding contribution from its fellow subsidiaries.
MERCATOR LINES (
This is a Singapore Stock Exchange listed subsidiary of MIPL
that owns 71.95% controlling interest in the company. MLS has their fully owned
subsidiaries; namely, Varsha Marine Pte. Limited, Vidya Marine Pte. Limited Subject Lines (
During the year, MLS achieved a consolidated turnover of Rs.7080.000 millions equivalent of USD 155.360 millions (as against Rs.6842.100 millions equivalent to USD 144.470 million in the previous year) and earned net profit after tax of Rs.1420.000 millions equivalent to USD 31.100 millions (as against Rs.1929.800 millions equivalent to USD 40.748 million in previous year).
The Board of Directors of MLS recommended dividend at 0.73 cents per share that was paid interim dividend as final dividend for year ended on March 31, 2011.
The Board of Directors of wholly owned subsidiaries of MLS; namely Varsha Marine; Vidya Marine and Chitra Prem declared and paid interim dividends of USD 3 mn (Pre. Year USD 1.20 million) USD 4.9 millions (Previous Year USD 5.20 millions) and USD 0.2 millions (not in existence). Subject Lines Panama was holding and assigning charter hire rights of Panamax vessels on a back to back basis that was expired on maturity and redelivered the vessel in may 2011. It remained dormant subsequently.
MERCATOR OFFSHORE
HOLDINGS PTE. LTD. (MOHPL) AND MERCATOR OFFSHORE LTD. (MOL)-WOS
MOHPL is a holding Company of MOL. At the beginning of the year; MOL owned a Jack up Rig which was sold in March 2011. The Rig was operated for 337 days. MOL achieved turnover of Rs.1420.000 millions equivalent of USD 31.100 millions (previous year Rs.1600.000 millions equivalent of USD 33.718 millions) and earned net profit of Rs.240.000 millions equivalent of USD 5.275 millions (previous year Rs.718.400 millions equivalent of USD 15.169 millions).
MERCATOR OIL and GAS
LTD. (MOGL)
An Indian based non-listed subsidiary. No commercial activities undertaken during the year.
MERCATOR PETROLEUM
LTD. (MPL)
This is an Indian non-listed subsidiary. During the year;
the status of the company was changed from Private Limited Company to Public
Limited Company and accordingly name was changed to Mercator Petroleum Limited.
The company has entered into a Production Sharing Contract with the Government
of India for exploration of Petroleum under the Seventh New Exploration Licensing
Policy round (NELP-VII) and has been allotted two blocks under the scheme in
OORJA HOLDINGS PTE.
LTD. (OHPL) AND ITS SUBSIDIARIES
OHPL is 100% subsidiary of Mercator International Pte.
Limited (MIPL) based in
Oorja 1 has a further subsidiary by the name of Oorja Indo
Petangis Four (OIP-4) incorporated in
During the year; OHPL achieved consolidated turnover of Rs.13380.000 millions equivalent of USD 293.424 millions (previous year Rs.3774.200 millions equivalent of USD 79.69 millions) and earned profit of Rs.370.000 millions equivalent of USD 8.200 millions (previous year loss of Rs.170.100 millions equivalent of USD 3.59 millions).
MERCATOR OFFSHORE (P)
PTE. LIMITED(MOPPL)
This subsidiary formerly known as Mercator Offshore (
MOPPL has a subsidiary located in
During the year, following subsidiaries viz. Mercator PH
(Dutch)
(For the purpose of financial performances conversion rate of per dollar has been taken as Rs.455.900 millions for Profit and Loss account (previous year Rs.473.600 millions) and Rs.446.500 millions for Balance Sheet items (previous year Rs.451.400 millions).
CONTINGENT
LIABILITY NOT PROVIDE FOR
|
Particulars |
31.03.2011 |
31.03.2010 |
|
Counter guarantees issued by the Company for guarantees obtained from bank |
257.394 |
230.553 |
|
Corporate guarantees issued by the company on behalf of wholly owned subsidiaries |
4982.828 |
1963.590 |
|
TOTAL |
5240.4220 |
2194.143 |
UNAUDITED
FINANCIAL RESULT FOR THE QUARTER / PERIOD ENDED SEPTEMBER 30, 2011
Rs.
in millions
|
Particulars |
30.09.2011 |
30.09.2011 |
|
|
Quarter Ended |
Six Month Ended |
|
1. (a) Income
From Operations |
1290.710 |
2532.224 |
|
1. (b) Exchange Fluctuation
(loss) gain |
23.087 |
21.574 |
|
1. (c) Profit/
(Loss) on |
0.000 |
0.000 |
|
TOTAL INCOME |
1313.797 |
2553.798 |
|
2. Expenditure |
|
|
|
a) Operating
Expenses |
467.574 |
907.102 |
|
b) Bunker Cost |
313.280 |
729.992 |
|
c) Vessel Hire
Charges |
81.119 |
117.753 |
|
d) Coal Operating
Expenses |
0.000 |
0.000 |
|
e) Employees Cost
|
19.775 |
47.360 |
|
f) Other
Expenditure |
15.518 |
45.004 |
|
g) Dry Docking
Expenses |
130.496 |
171.395 |
|
Exchange
Fluctuation Loss |
0.000 |
0.000 |
|
TOTAL EXPENDITURE |
1027.762 |
2018.606 |
|
|
|
|
|
Profit before depreciation, interest, tax
and other income and exceptional items (EBIDTA) |
286.035 |
535.192 |
|
Depreciation |
299.288 |
591.176 |
|
3. Profit from operation before other
income, interest and exceptional items |
(13.253) |
(55.984) |
|
4. Other income |
|
|
|
- Profit on sale
of investments |
0.000 |
0.000 |
|
- Miscellaneous
income |
1.587 |
7.044 |
|
5. Profit/ (Loss)
before interest and exceptional items |
(11.666) |
(48.940) |
|
6. Interest (Net) |
279.427 |
516.676 |
|
7. Profit/ (Loss)
after interest but before exceptional items |
(291.093) |
(565.616) |
|
8. Exceptional
items |
0.000 |
0.000 |
|
9. Profit / Loss from
ordinary activities before tax |
(291.093) |
(565.616) |
|
Minority interest
|
0.000 |
0.000 |
|
10. Tax expenses |
|
|
|
- Current |
5.000 |
15.000 |
|
- Deferred |
0.000 |
0.000 |
|
- MAT Credit
Entitlement |
0.000 |
0.000 |
|
11. Net Profit/ (Loss) from ordinary
activities after tax |
(296.093) |
(580.615) |
|
12. Extra
ordinary items |
0.000 |
0.000 |
|
13. Net profit / Loss for the period |
(296.093) |
(580.615) |
|
14. Paid up equity
share capital (face value of equity shares of Rs. 1/- each) |
244.892 |
244.892 |
|
15. Reserves
excluding revaluation reserves |
-- |
-- |
|
16. Earning per
shares (EPS) |
|
|
|
Before
extra-ordinary items |
|
|
|
- Basic (Rs.) |
(1.21) |
(2.37) |
|
- Diluted (Rs.) |
(1.21) |
(2.37) |
|
After
extra-ordinary items |
|
|
|
- Basic (Rs.) |
(1.21) |
(2.37) |
|
- Diluted (Rs.) |
(1.21) |
(2.37) |
|
17. Public
shareholding |
|
|
|
-
Number of Shares |
146408007 |
146408007 |
|
-
Percentage of Shareholding |
59.78% |
59.78% |
|
18.
Promoters and Promoter Group Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
-
Number of Shares |
63812500 |
63812500 |
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
64.79% |
64.79% |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
26.06% |
26.06% |
|
b)
Non Encumbered |
|
|
|
-
Number of Shares |
34671566 |
34671566 |
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
35.21% |
35.21% |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
14.16% |
14.16% |
|
Particulars |
30.09.2011 |
30.09.2011 |
|
1. Segment Revenue |
|
|
|
(Net sale/ income from each segment should be disclosed under this head) |
|
|
|
a) Shipping |
2958.366 |
5818.717 |
|
b) Offshore |
505.328 |
818.057 |
|
c) Coal (Mining, Trading and Logistics) |
4347.872 |
9136.774 |
|
d) Other/ Un-allocated |
49.198 |
72.828 |
|
|
|
|
|
Net sale / income
from operations |
7860.764 |
15876.376 |
|
|
|
|
|
2. Segment results
(Profit/ (loss) before tax and interest from each segment) |
|
|
|
a) Shipping |
70.567 |
221.884 |
|
b) Offshore |
135.704 |
246.189 |
|
c) Coal (Mining, Trading and Logistics) |
354.008 |
741.262 |
|
d) Other/ Un-allocated |
49.910 |
72.828 |
|
Less: (i) Interest |
473.382 |
901.191 |
|
|
|
|
|
Total profit before tax |
136.807 |
380.972 |
|
|
|
|
|
3. Capital employed
|
|
|
|
(Segment assets – Segment liability) |
|
|
|
a) Shipping |
50703.731 |
50703.731 |
|
b) Offshore |
7595.130 |
7595.130 |
|
c) Coal (Mining, Trading and Logistics) |
4313.788 |
4313.788 |
|
d) Other/ Un-allocated |
(33530.037) |
(33530.037) |
|
Total |
29082.612 |
29082.612 |
STATEMENT OF
ASSETS AND LIABILITY AS ON 31ST MARCH, 2011
(Rs.
in Millions)
|
Particular |
Standalone
|
|
30.09.2011 |
|
|
SHAREHOLDERS
FUNDS |
|
|
a) Capital |
244.892 |
|
b) Warrants
against Share Capital |
24904.283 |
|
Minority
Interest |
3933.539 |
|
LOAN FUNDS |
33530.037 |
|
TOTAL |
62612.751 |
|
|
|
|
FIXED ASSETS |
57334.871 |
|
NET FIXED ASSETS
|
0.000 |
|
|
|
|
INVESTMENTS |
152.778 |
|
|
|
|
Deferred Tax |
0.000 |
|
|
|
|
CURRENT ASSETS, LOANS
AND ADVANCES |
|
|
a) Inventories |
747.655 |
|
b) Sundry
Debtors |
4065.473 |
|
c) Cash and Bank
Balances |
1862.118 |
|
d) Loans and
Advances |
4057.967 |
|
TOTAL CURRENT
ASSETS |
10733.213 |
|
Less: Current Liabilities
and Provisions |
|
|
a) Liabilities |
5582.116 |
|
b) Provisions |
25.995 |
|
c) Incomplete
Voyages (Net) |
0.000 |
|
TOTAL CURRENT
LIABILITIES |
5608.111 |
|
|
|
|
NET CURRENT
LIABILITIES |
5125.102 |
|
|
|
|
TOTAL |
62612.751 |
Notes:
- These results reviewed by the Audit committee;
were taken on record by the Board of Directors at its meeting held on 14th
November, 2011
- Pursuant to the requirements of the listing
agreement, the Statutory Auditors have performed a Limited Review of
standalone financial results for the quarter/half year ended on September
30, 2011.
- During the quarter ended the company has
voluntarily adopted AS - 30 "Financial Instruments: Recognition and
Measurement" for accounting of financial derivative transactions.
Mark to market valuation loss of Rs.845.700 millions on the said
derivative financial instruments has consequently been transferred to
"Hedge Reserve Account."
- During the quarter, the Company took delivery of
a Cutter Suction Dredger. Subsequent to quarter end, delivery of a TSHD
Dredger was taken.
- The Company has divided segments into Shipping
(includes tanker, bulker and dredger), Offshore, and Coal (includes mining,
procurement & logistics). The revenue break-up of these segments is
Tanker -10%, Bulker - 22%, Dredger - 5%, Offshore - 5% and Coal - 58%
- No. of complaints of investors: Pending at the
beginning of quarter: Nil; Received during the quarter:9; resolved during
the quarter 9; pending at the end of the quarter: Nil
- Figures of the previous period/ year have been
rearranged / regrouped wherever necessary.
FIXED ASSETS:
v Land
v Office Premises
v Vessels
v Office and
Computer Equipments
v Furniture and
Fixtures
v Vehicles
v
Plant and machinery
WEBSITE DETAILS:
PRESS RELEASE:
MERCATOR REPORTS ANNOUNCES AUDITED RESULTS FOR THE YEAR ENDED MARCH 2011
Mercator Lines Limited,
The Dry Bulk segment and Tankers segment
contributed about 27% and 16% respectively to the total revenues for the year.
Dredging division supplemented the revenues by about 3%. Share of Offshore
segment in total revenues was at about 5%.
Coal mining and trading activities contributed
about 49% to the total revenue.
The shipping industry worldwide continued to
sail through tough times on account of various reasons including over supply of
tonnage. Mercator’s strategy of diversifying into other related segments of
business has helped it to minimize overall adverse impact. For the second
consecutive year; the coal business has posted a handsome growth in revenue of
over 250% this year and in EBIDATA over 900%. This tempo of growth is expected
to continue.
Going forward; the successful commissioning of
FPU project would add considerable growth in the performance of the Mercator.
Subject has also good order book undet
dredging segment which is also expected to contribute to its growth in near
future.
About the Company:
Mercator Lines Limited, the second largest
private sector shipping company in
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.49.07 |
|
|
1 |
Rs.78.09 |
|
Euro |
1 |
Rs.65.15 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.