MIRA INFORM REPORT

Report Date :

18.01.2012

IDENTIFICATION DETAILS

Name :	BHARATI SHIPYARD LIMITED
Registered Office :	302, Wakefield House, 3^rd Floor, Sprott Road, Ballard Estate, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.06.1976
Com. Reg. No.:	11-19092
Capital Investment / Paid-up Capital :	Rs.303.093 Millions
CIN No.: [Company Identification No.]	L61100MH1976PLC019092
TAN No.: [Tax Deduction & Collection Account No.]	MUMB11876E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	The company’s principal activity is to design and construction of various types of sea going, coastal, harbour, inland crafts and vessels.
No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 39000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. 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 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

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Sunil Panchal
Designation :	Manager
Contact No.:	91-22-30289264

LOCATIONS

Registered Office :	302, Wakefield House, 3^rd Floor, Sprott Road, Ballard Estate, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-30289200/30289201
Fax No.:	91-22-30289222
E-Mail :	bharati@bom5.vsnl.net.in info@bharatishipyard.com spanchal@bharatishipyard.com uapatel@bharatishipyard.com
Website :	http://www.bharatishipyard.com
Area :	1500 sq. ft.
Location :	Owned
Head Office 1 :	Mirya Bunder, Ratnagiri, Maharashtra, India
Tel. No.:	91-2352-232340/232371
Fax No.:	91-2352-232524
Head Office 2 :	Ghodbunder, District Thane, Maharashtra, India
Tel. No.:	91-22-28111497/28111093
Fax No.:	91-22-28103360
Corporate Office :	Oberoi Chambers- II, Ground Floor, Link Road, Near Lakshmi Industrial Estate, Andheri (West), Mumbai-400053, Maharashtra, India
Tel. No. :	91-22-39506800
Fax No. :	91-22-39506900
E mail:	info@bhartishipyard.com

DIRECTORS

As on 31.03.2011

Name :	Mr. Prakash Chandra Kapoor
Designation :	Managing Director
Address :	7/8, Krishna Kunj, Sarojini Road, Santacruz (West), Mumbai – 400054, Maharashtra, India
Qualification :	B. Tech.
Name :	Mr. Vijay Kumar
Designation :	Managing Director
Address :	410/411, Mittal Park, Ruia Park, Juhu, Mumbai – 400 059, Maharashtra, India
Qualification :	B. Tech.
Name :	Mr. B L Patwardhan
Designation :	Director [Nominee – SBI]
Name :	Mr. V P Kamath
Designation :	Director

KEY EXECUTIVES

Name :	Mr. U.A. Patel
Designation :	Chief General Manger and Company Secretary
Name :	Mr. Sunil Panchal
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	11,977,238	37.80
Bodies Corporate	2,878,731	9.08
Sub Total	14,855,969	46.88
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	14,855,969	46.88
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	3,386,036	10.69
Foreign Institutional Investors	434,319	1.37
Sub Total	3,820,355	12.06
(2) Non-Institutions
Bodies Corporate	2,523,712	7.96
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	8,205,307	25.89
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1,372,198	4.33
Any Others (Specify)	910,223	2.87
Non Resident Indians	527,174	1.66
Clearing Members	379,036	1.20
Trusts	4,013	0.01
Sub Total	13,011,440	41.06
Total Public shareholding (B)	16,831,795	53.12
Total (A)+(B)	31,687,764	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	31,687,764	-

BUSINESS DETAILS

Line of Business :

The company’s principal activity is to design and construction of various types of sea going, coastal, harbour, inland crafts and vessels.

GENERAL INFORMATION

No. of Employees :

1500 (Approximately)

Bankers :

· State Bank of India, Churchgate Branch, Mumbai – 400 020, Maharashtra, India

· State Bank of Hyderabad

· State Bank of Travancore

· Andhra Bank

· ICICI Bank

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
a) Debentures	900.000	900.000
b) Loans and advances from banks
i) Cash Credit/ Export Credit	4848.406	1903.732
ii) Term Loans	11864.130	11475.474
c) Loans and Advances from Financial Institutions	675.000	750.000
Total	18287.536	15029.206
Unsecured Loan
Foreign currency convertible bonds	0.000	2875.405
Loans and Advances from banks	16189.156	4514.551
Loans and advances from others	581.686	508.815
Total	16770.842	7898.771

Banking Relations :	--
Auditors :
Name :	DPH and Company Chartered Accountant
Name:	Bhuta Shah and Company Chartered Accountants
Solicitors :
Name:	Kanga and Company Chartered Accountants
Associates:	Great Offshore Limited
Joint Venture:	Bengal Shipyard Limited
Subsidiaries:	· Advitiya Urja Private Limited · Dhanshree Properties Private Limited · Natural Power Ventures Private Limited · Nirupam Energy Projects Private Limited · Nishita Mercantile Private Limited · Pinky Shipyard Private Limited · Premila Mercantile Private Limited · Vishudh Urja Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30309300	Equity Shares	Rs.10/- each	Rs.303.093 Millions

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31687764	Equity Shares	Rs.10/- each	Rs.316.877 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		303.093	289.393	275.693
2] Share Application Money		0.000	0.000	0.000
3] Convertible Warrents		275.693	96.323	0.000
4] Reserves & Surplus		9240.789	8122.606	6745.812
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9819.575	8508.322	7021.505
LOAN FUNDS
1] Secured Loans		18287.536	15029.206	6978.879
2] Unsecured Loans		16770.842	7898.771	3049.191
TOTAL BORROWING		35058.378	22927.977	10028.070
DEFERRED TAX LIABILITIES		552.404	419.102	345.001
TOTAL		45430.357	31855.401	17394.576
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7454.604	3721.367	2518.628
Capital work-in-progress		6641.688	7150.728	6156.662
INVESTMENT		123.135	562.388	34.258
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	19079.607	12310.911	8478.205
	Sundry Debtors	5710.741	3583.955	2811.202
	Cash & Bank Balances	1831.486	2819.208	2279.693
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	15649.772	14255.283	6378.278
Total Current Assets		42271.606	32969.357	19947.378
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2572.255	2879.820	1099.134
	Other Current Liabilities	6237.772	7533.248	8671.223
	Provisions	2250.649	2145.157	1511.564
Total Current Liabilities		11060.676	12558.225	11281.921
Net Current Assets		31210.930	20411.132	8665.457
MISCELLANEOUS EXPENSES		0.000	9.786	19.571
TOTAL		45430.357	31855.401	17394.576

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover	13682.269	12648.174	9340.959
		Subsidy	2107.817	836.180	849.830
		Other Income	23.363	40.069	3.752
		TOTAL (A)	15813.449	13524.423	10194.541
Less	EXPENSES
		Raw Material Consumed	7525.099	7040.654	5096.842
		Manufacturing and Other Expenses	1854.569	1671.800	1279.033
		Employee Cost	1760.541	1602.140	1250.773
		TOTAL (B)	11140.209	10314.594	7626.648
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4673.240	3209.829	2567.893
Less	FINANCIAL EXPENSES (D)		2663.263	977.307	513.349
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2009.977	2232.522	2054.544
Less/ Add	DEPRECIATION/ AMORTISATION (F)		215.077	152.931	100.869
	PROFIT BEFORE TAX (E-F) (G)		1794.900	2079.591	1953.675
Less	TAX (H)		660.380	690.919	620.448
	PROFIT AFTER TAX (G-H) (I)		1134.520	1388.672	1333.227
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4374.147	3225.915	2122.775
Less	APPROPRIATIONS
		Transfer to Debenture Redemption Reserve	125.000	0.000	0.000
		Transfer to General Reserve	113.452	138.867	133.323
		Proposed Final Dividend	90.928	86.818	82.708
		Dividend Distribution Tax	15.102	14.755	14.056
	BALANCE CARRIED TO THE B/S		5164.185	4374.147	3225.915
	EARNINGS IN FOREIGN CURRENCY		3901.734	1247.176	1205.583
	IMPORTS
		Raw Materials	555.071	748.541	1416.917
		Components and Spares Parts	6770.263	5166.057	4874.670
		Capital Goods	533.051	666.290	1374.295
	TOTAL IMPORTS		7858.385	6580.888	7665.882
	Earnings Per Share (Rs.)
	Basic		38.64	50.32	48.36
	Diluted		40.82	41.72	41.81

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	4397.220	4654.960
Total Expenditure	2985.510	2908.620
PBIDT (Excl OI)	1411.710	1746.340
Other Income	0.060	1.960
Operating Profit	1411.770	1748.300
Interest	1056.450	1293.880
PBDT	355.320	454.420
Depreciation	99.090	99.380
Profit Before Tax	256.230	355.040
Tax	83.140	119.910
Profit After Tax	173.090	235.130
Net Profit	173.090	235.130

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.17	10.27	13.08
Net Profit Margin (PBT/Sales)	(%)	13.12	16.44	20.92
Return on Total Assets (PBT/Total Assets}	(%)	3.61	7.51	8.70
Return on Investment (ROI) (PBT/Networth)		0.18	0.24	0.28
Debt Equity Ratio (Total Liability/Networth)		4.70	4.17	3.03
Current Ratio (Current Asset/Current Liability)		3.82	2.63	1.77

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject is one of the leading private sector shipyard in India. They are engaged in design and construction of Sea-going, Coastal, Harbour, Inland crafts and vessels. Bharati Shipyard currently owns two shipyards, which are strategically located at Thane, Ratnagiri, Mangalore and Kolkata. The subsidiary company, Pinky Shipyard owns a shipyard at Goa. Bharati Shipyard Limited was incorporated on June 22, 1976. In the year 1985, the company bagged their first export order for construction of 5 Barges from Yeman through Mazgaon Dock Limited From then, their product range has been upgraded from the simple inland cargo barges to deep-sea trawlers and dredgers to maneuverable and power-packed ocean-going tractor tugs, cargo ships, tankers and vessels required by the offshore industry. In the year 1991, the company bagged order for 2 Specialized Tractor Tugs with installed power of over 4000 BHP from Cyprus Port Authority. In the year 1997, they received order for supply of 2 maneuverable tugs to Reliance India Limited and two nos 80 mtrs long 2,100 ton mini bulk carriers to Greatship Singapore. In the year 2000, they received orders from Qatar Shipping Co and Al Jabar Establishment, Abu Dhabi for supply of 4 nos 5000 HP Azimuthal Stern Drive Tugs and 100 mts long Bitumen Tanker-cum-RoRo Vessel respectively. During the year 2003-04, the company expanded and modernised the shipyard in Ratnagiri to cater to the increasing demands of building custom-made sips up to 25000 DWT. During the year 2004-05, the Company came out with an IPO of 12500000 Equity Shares of Rs 10/- each at a premium of Rs 56/- per share. In January 2005, the company bagged two contracts from The Bourbon Supply Investments, France for supply of 2 Multipurpose 60 mtr Long Platform Supply vessels. In May 2005, the company bagged contracts from Sea Cargo Skips AS, Norway and Nor Lines AS, Norway for supply of 2 Container Vessels to each company. Pinky Shipyard Private Limited became a subsidiary of the company with effect from October 27, 2005. During the year 2005-06, the company commissioned a wind farm, consisting of 11 Wind Energy Generators at Brahmanvel in Maharashtra. In September 2005, the company bagged a contract from M K Shipping BV, Netherlands for supply of 6 Multipurpose Carrier Vessels. During the year 2006-07, they also commissioned the Wind Farm, consisting of 14 Wind Energy Generators with a total capacity of 15 MW and a total investment of Rs 867.770 Millions in the same place. The company successfully delivered four vessels during the year. In August 2006, the company bagged a contract from Reliance Industries Limited for construction of 6 vessels with the contract value of Rs 1200.000 Millions. In April 2007, the company acquired all the shipyard machinery and equipments of Swan Hunter (Typeside) Shipyard Limited and these equipments will be used in their existing yards as well as in their Greenfield projects. The company signed a contract with UP Offshore (Bahamas) Limited and Great Offshore Limited in April 2007, for the construction and supply of two Platform Supply Vessels and one Multipurpose Offsore Support Vessel respectively. In May 2007, Man Ferrostaal AG of Germany has ordered 2 nos Latest Generation Large PSVs with the company. In June 2007, the company bags Rs 2600.000 Millions order to build 150 tonnes bollard pull AHTSV from Norwegian Offshore Shipping I Limited of Norway. In October 2007, the company and Apeejay Shipping Limited have signed a 50:50 joint venture agreement for setting up a large modern shipbuilding yard along the Eastern Coast of the country. In November 2007, they bagged and order for 2 nos UT 755LN Platform Supply Vessel from Opielok Bereederungs GMBH and Co KG in Hamburg, Germany. The company is having the plan to construct a Green field modern shipyard at Usgaon near the Dabhol port in Ratnagiri.

CAPITAL:

During the year Authorized Share Capital of the Company remained unchanged to Rs.500.000 Millions consisting of 5,00,00,000 Equity Shares face value of Rs. 10/-each. The Issued, Subscribed and Paid up Share Capital of the Company has increased from 2,89,39,300 shares to 3,03,09,300 shares face value of Rs 10/- each fully paid up. During the year Company has issued 13,70,000 equity share at Rs 80/- (face value Rs 10/-each) each fully paid up on conversion of convertible 13,70,000 warrants Tranche – 1 issued vide resolution dated 15th May 2009 passed at EGM.

OPERATING RESULTS AND PROFITS:

During the year, the Company has successfully delivered 5 (Five) vessels and 1(one) project. The Company has posted turnover of Rs.13682.269 Millions, and an increase of about 8.18 % as compared to Rs. 12648.174 Millions in the previous financial year. The Company has achieved Profit after Tax of Rs.1134.520 Millions as against Rs. 1388.672 Millions in the previous year.

FINANCE:

As at the end of financial year, the Company has total Secured Loans of Rs.18287.536 Millions including Debentures worth Rs. 900.000 Millions, Cash and Export Credit Facility worth Rs.4848.406 Millions (by way of consortium finance where State Bank of India is the lead bank) and Term Loans and Loan from Bank and other Financial Institutions worth Rs.12539.130 Millions. The Company has also availed unsecured loan and at the end of financial year total of Rs.16770.842 is outstanding as unsecured loan.

WIND POWER PROJECT:

The Company has put up a Wind Farm, consisting of 14 Wind Energy Generators with a total capacity of 15 MW at Village Brahamanvel, Taluka Sakri, District Dhule, Maharashtra. The project has generated revenue of Rs.97.830 Millions during the year under report. It has become mandatory for the Company to appoint a Cost Auditor w-e-f from 1st April, 2011. Hence the company has appointed Mr. K N Satyanarayan as the Cost Auditor for the above Project at its Board meeting held on 13^th May, 2011.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure, Development and Outlook

The Shipbuilding Industry

Waiting for the upturn to Commence

Global Shipbuilding industry continued to witness sluggish demand during CY 2010. The demand for containers and cargo carrying vessels dropped on a y-o-y basis. The Baltic Dry Index dipped approximately 46% during CY 2010. New building prices have bottomed out in CY10 having declined about 30% to 45% from the peak levels witnessed in mid 2008. At the beginning of the year, prospects for the offshore industry looked better in comparison to the cargo and container demand as crude oil prices were on an uptrend throughout the year. However, globally the demand for offshore vessels did not pick up as anticipated, primarily due to over-capacity in the offshore vessels. The total new builds order increased from 33.6 mn GT to 77.8 mn GT. However, there was no meaningful order accretion for the Indian shipyards in comparison to their Korean and Chinese peers during the year. The Asian shipbuilders continued to dominate the global Shipbuilding order book. China continued to be the largest shipbuilding country in CY 2010 with a total order book standing at 185 million Dead Weight Tonnage (DWT). South Korea ranked second with a total DWT of 144 mn DWT, whilst Japan stood at number three at 77 mn DWT. Japan lost its market share to its Korean and Chinese competitors.

Shipbuilding scenario in India

Indian Shipbuilding orders did not pick up as anticipated at the beginning of CY 2010. Indian shipbuilding companies cater to the niche offshore segment constructing Platform Support Vessels (PSVs), Offshore Support Vessels (OSVs), Anchor Handling Tugs (AHTs), Multipurpose Platform Support Vessels etc. Despite, an increase in the crude oil prices, most of the Indian yards failed to see new vessel orders during the year due to oversupply in the offshore vessels. Nevertheless, the Indian Shipbuilding Companies have stayed afloat in such trying times due to resilient order book positions. A few Defence sector orders were bagged by some public as well as private sector yards during the year Defence shipbuilding is expected to meaningfully contribute to order book accretion in the coming years for the Indian shipbuilding Companies. According to the Shipping Ministry document “Maritime Agenda: 2010 – 2020”, Government of India has proposed to increase the share of new build order book position of India to 5% over the period of coming decade i.e. by the year 2020. Currently Indian share of new build order book is less than 1% of the global orders. Government is desirous of developing maritime infrastructure – ports, shipping, including inland water transport, which will boost shipbuilding development in the years to come. Shipbuilding sector provides substantial employment in the organized sector, and acts as catalyst for steady urbanized development. Lower labour costs, skilled man power etc. have spurred ship building growth over the last decade. With further impetus from the Government, the Shipbuilding sector in India will be on a high speed growth path. Opening up of the Defence sector orders for private shipbuilders and focus on energy security by National Oil Companies make us optimistic about long term domestic demand prospects and its impact on the shipbuilding development in India.

Company Overview:

Subject began operations in 1976 with one shipyard based out in Ratnagiri, Maharashtra. The company now owns six shipyards with presence on both the West and the East Coast of India. The shipyards are located at Ratnagiri, Dabhol, Goa, Ghodbunder, Mangalore and Kolkata. The company's product portfolio has graduated from small sized vessels and tugs to sophisticated offshore vessels like Platform Support Vessels (PSVs), Anchor Handling Support Vessels (AHTSVs), Offshore Support Vessels (OSVs), Midsized LNG Containers, Forest Carriers and more recently Oil rig. Bharati strives to achieve balanced growth by evaluating all the business opportunities and seeking the best option from the available opportunities. With ready technology upbeat infrastructure the company is well placed to allay the effects of the ongoing global economic upheaval. With the view to reap the benefits of the upcoming shipping cycle, the company is in the advanced stages of Greenfield yards construction in Dabhol, Maharashtra and Mangalore, Karnataka.

CONTINGENT LIABILITIES NOT PROVIDED IN RESPECT OF:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Claims against company not acknowledge as debt	93.183	93.183
Tax/Duties that may arise in respect of which appeal is pending	14.000	15.500
Corporate Guarantee given to Bank	1647.667	110.628
Letter of Credit outstanding	2248.178	177.004
Liabilities arising out of unexecuted Contract	8529.750	4850.000
Bank Guarantees
- Performance Guarantee	419.685	486.076
- Advance Guarantee	19153.110	20007.473
- Others	55.375	65.305

FIXED ASSETS

Ø Land

Ø Building

Ø Plant and machinery

Ø Dredger

Ø Furniture and fittings

Ø Vehicles

Ø Computers

Ø Wind Mill

Ø Office Equipments

WEBSITE DETAILS:

BUSINESS DESCRIPTION:

Subject is an India-based company. The Company is engaged in shipyard business. BSL operates in two segments: ship manufacturing and windmill power. As of March 31, 2011, the Company owned six shipyards with presence on both the West and the East Coast of India. The shipyards are located at Ratnagiri, Dabhol, Goa, Ghodbunder, Mangalore and Kolkata. The Company has set up a wind farm, consisting of 14 wind energy generators with a total capacity of 15 megawatts at village Brhamanvel, Taluka Sakri, District Dhule, Maharashtra. The company's product portfolio includes small sized vessels, tugs, offshore vessels like platform support vessels (PSVs), anchor handling support vessels (AHTSVs), offshore support vessels (OSVs), midsized liquefied natural gas (LNG) containers, forest carriers and oil rig. During the fiscal year ended March 31, 2011, the Company acquired 51% interest of Tebma Shipyard Limited. For the fiscal year ended 31 March 2010, Subject revenues increased 33% to RS13.54B. Net income remained flat at RS1.28B. Revenues reflect increased WIP revenue and a rise in income from Wind Mill income. Net income was partially offset by higher consumption of raw materials, an increase in employee costs, a rise in financial charges, higher manifacture and other charges and a rise in depreciation.

Board of Director:

Vishnu Pundalika Kamath

Non-Executive Independent Director

Mr. V. P. Kamath is Non-Executive Independent Director of Subject. He B.Com (Advanced Accounts and Auditing), University of Bombay, CAIIB with an experience in Banking, Leasing and Financial Services and Project Financing. Besides this he has also experience in planning and implementation of ventures in the areas of Housing Finance, Mutual Funds, Forex Money Changing, etc. He was a member of various Institutional Committees of All India Financial Institution.

Prakash Chandra Kapoor

Managing Director

Mr. Prakash Chandra Kapoor is Managing Director, Executive Non-Independent Director of Subject. He is a qualified Bachelor of Naval Architect from lIT Kharagpur with experience in Ship Construction, Ship Design and its management. He promoted Subject in 1976 with an overall charge of development and-operation of the Company. He is a member of Confederation of Indian Industry, Engineering Export Promotion Council, All India Management Association, Indian Economic Development and Research Association and an active committee member of Institute of Naval Architects, India.

PRESS RELEASES:

AI DEBT ROW: BANKERS OUTWEIGH CREDIT RATING OVER PROVISIONING

15 January 2012

Mumbai, January 15 2012 (PTI) -- The consortium of lenders that has rejected the RBI-approved debt recast for Air India (AI) is more worried about their credit ratings and image in global markets than the nearly Rs 100000.000 Millions provisioning they will have to set aside under the plan, say leading bankers.

And going by this, even if the debt-laden national carrier manages to get a fresh debt recast plan done, it is unlikely to go through with the lenders, unless some basic CDR provisions are given a go by, such as scrapping the provision of tying dividend payment to profitability, whether AI makes money or not, pointed out these bankers.

The lenders are also not happy with the "special treatment" that State Bank got in the CDR proposal, prepared by its own i-bank arm SBI Caps, as despite the fact that most of them do not have as much exposure as SBI, they are forced to shell out much higher than the Government-run lender.

The lenders, barring SBI, which has given a Rs 11000.000 Millions cash-to-credit loan to AI, and therefore a low provisioning of only about Rs 37 Millions, are also peeved at the way SBI Caps "short-changed" them in the CDR plan, as those with similar exposure will see a hole as much as Rs 5000.000-7000.000 Millions in their balance sheets if it goes through, a senior public sector banker, who sought not to be named, told PTI.

The bankers said it is not the first time that SBI Caps has "goofed up" the loan syndication and CDRs (corporate debt restructuring). In the first place they were roped into extend loans to companies like AI, Kingfisher Airlines, GTL and Bharati Shipyard, which are all now desperately seeking CDR packages.

The junked Rs 22,500-Millions CDR envisages converting Rs 110000.000 Millions of the working capital into long-term debts ending 2020, and Rs 7,000 Millions into cumulative redeemable preferential shares but without an assured return, which will be redeemable from 15th and 20th year onwards. (more) PTI BEN MR 01151542

MOUNTING NPAS TO HIT BANKS' PROFITS FROM Q3: BARCLAYS CAPS

11 January 2012

Mumbai, January 11, 2012 (PTI) -- The inability of large corporates to service their debt obligations will start having an impact on banks' profits from the December quarter onwards, Barclays Capital said today.

"We expect the credit quality issues from large borrowers to start becoming evident in the Q3 results, particularly in the restructured loans category," Barclays Capital equity research arm said in a report ahead of the Q3 results, which will be kicked off with the Infosys numbers tomorrow.

The research draws attention to the pending amounts under the corporate debt restructuring (CDR) mechanism.

At the end of the second quarter of current fiscal, Rs 246000.000 Millions of debt was pending restructuring versus Rs 75000.000 Millions in the June quarter and Rs 180000.000 Millions for the entire FY 2010-11, it said.

According to a StanChart report, however, this figure is going to hit a whopping Rs 500000.000 Millions this quarter if the Air India, GTL and Bharati Shippyard CDR proposals go through.

"Going forward, we expect it to increase further based on recent news flow on banks referring their debt to Kingfisher Airlines, Bharati Shipyard and others for the CDR process," it said.

On other key parameters, banks will post stable net interest margins for the quarter even as business growth will be slow, the Barclays report said.

Banks are also expected to report muted fee incomes due to the slower loan growth and lower incremental sanctions, it said. All the lenders, except IndusInd Bank, are yet to come out with their numbers for the December quarter. PTI AA BEN RSY MR 01112150

BHARATI SHIPYARD APPROVES US$539BLN DEBT RESTRUCTURING

29 December 2011

NEW DELHI, Dec 29Asia Pulse - India-based Bharati Shipyard (BSE:532609) on Monday said its board has approved a Rs 2,854-Millions (US$539.71 billion) corporate debt restructuring programme as part of efforts to optimise costs.

"The debt restructuring will help us to optimise costs and resources in the time to come," company managing director P.C Kapoor said in a statement.

Bharati Shipyard's total debt currently stands at Rs 32500.000 Millions. The restructuring pertains to "Term/Working Capital debt".

The company, which is in advanced stages of completion of its two greenfield shipyards at Dabhol and Mangalore, said it has Rs 68000.000 Millions order book which would be executed by 2014.

"Majority of our orders come from the European markets, which is currently facing challenging times. However, we are in the process of delivering five vessels in the next six months," Kapoor said.

He said the company would undertake various initiatives to optimise the current resources in view of the overall sectoral slowdown and the challenging economic scenario.

"The overall shipping industry in India is under tremendous pressures. However, Bharati Shipyard is confident of its business model and successfully weathering the current business challenges," he said.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.07
UK Pound	1	Rs.78.48
Euro	1	Rs.65.00

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.