MIRA
INFORM REPORT
|
Report Date : |
09.02.2013 |
IDENTIFICATION DETAILS
|
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) : |
31.03.2012 |
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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. 2599.700 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 providing offshore oilfield services with the principal
activity of offshore logistics and drilling services. |
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|
No. of Employees
: |
123 (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 81600000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a 100% Subsidiary of “The Great Eastern Shipping Company
Limited”. It is a well established and reputed company having good track record.
There appears slight dip in profitability during the current year. However, the financial position of the company is strong. Liquidity
position of the company is good. Performance capability is high. Trade relations are reported to
be fair. Business is active. Payments are reported to be regular and as per
commitments. In view of strong holding and experience promoters to company can be
considered 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.
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Term Loan : (CRISIL) AA+ |
|
Rating Explanation |
Having high degree of safety regarding
timely servicing of financial obligation it carry very low credit risk. |
|
Date |
June 2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Ms. Sunita |
|
Designation : |
Accounts Department |
|
Contact No.: |
91-22-67207500 |
|
Date : |
07.02.2013 |
LOCATIONS
|
Registered Office : |
134/A, Ocean House, Dr. |
|
Tel. No.: |
91-22-66613000 |
|
Fax No.: |
91-22-24920200 |
|
E-Mail : |
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|
Website : |
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Location : |
Owned |
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|
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|
Corporate/ Head Office : |
Indiabulls Finance Centre, Tower 3, 23rd Floor Senapati Bapat
Marg, Mumbai - 400013, |
|
Tel. No.: |
91-22-67207500/ 71022200 |
|
|
91-22-66517428 |
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E-Mail : |
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|
Location : |
Owned |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Bharat K. Sheth |
|
Designation : |
Chairman |
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|
Name : |
Mr. |
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Designation : |
Managing Director |
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Name : |
Mr. P.R. Naware |
|
Designation : |
Executive Director |
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|
Name : |
Mr. Keki Mistry |
|
Designation : |
Executive Director |
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|
Name : |
Mr. Berjis Desai |
|
Designation : |
Executive Director |
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|
Name : |
Mr. Vineet Nayyar |
|
Designation : |
Executive Director |
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|
|
|
Name : |
Mr. Shashank Singh |
|
Designation : |
Executive Director |
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|
|
Name : |
Mr. Anil Singhvi |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Ms. Sunita |
|
Designation : |
Accounts Department |
|
|
|
|
Name : |
Ms. Amisha Ghia |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
NOT AVAILABLE
BUSINESS DETAILS
|
Line of Business : |
The company is providing offshore oilfield services with the principal
activity of offshore logistics and drilling services. |
GENERAL INFORMATION
|
No. of Employees : |
123 (Approximately) |
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Kalyaniwalla and Mistry Chartered Accountants |
|
Address : |
Kalpataru Heritage, 127, |
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Holding Company : |
Ř The Great
Eastern Shipping Company Limited |
|
|
|
|
Fellow
Subsidiaries : |
Ř The Great
Eastern Chartering LLC (FZC), Sharjah Ř The Great
Eastern Shipping Company ( Ř The Greatship ( |
|
|
|
|
Subsidiaries : |
Ř Greatship Global
Holdings Limited, Ř Greatship Global
Energy Services Pte. Limited, Ř Greatship Global
Offshore Services Pte. Limited, Ř Greatship DOF Subsea
Projects Private Limited, Mumbai (struck off w.e.f. 30th December 2011) Ř Ř Greatship Subsea
Solutions Australia Pty. Limited, Ř Greatship ( Ř Greatship Global
Offshore Management Services Pte. Limited, |
CAPITAL STRUCTURE
AS ON 31.03.2012
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 |
|
|
|
|
|
|
111,345,500 |
Equity Shares |
Rs. 10/- each |
Rs. 1113.500
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 Shares |
Rs. 10/- each |
Rs. 606.200
Millions |
|
|
Total |
|
Rs. 2599.700 Millions |
(a) Reconciliation of shares outstanding at the end of the year:
|
Details |
31.03.2012 |
|
|
|
No. of Shares |
Rs. in millions |
|
Equity Shares of par value Rs. 10/- fully
paid up |
|
|
|
Outstanding at the beginning of the year |
105,885,500 |
1058.900 |
|
Add: Issued during the year |
5,460,000 |
54.600 |
|
Outstanding at the end of the year |
111,345,500 |
1113.500 |
|
|
|
|
|
7.5% Cum Redeemable
Preference Shares of par value Rs. 10/- fully
paid up |
|
|
|
Outstanding at the beginning of the year |
88,000,000 |
880.000 |
|
Add: Issued during the year |
-- |
-- |
|
Outstanding at the end of the year |
88,000,000 |
880.000 |
|
|
|
|
|
22.5% Cum
Redeemable Preference Shares of par value Rs. 10/- fully
paid up |
|
|
|
Outstanding at the beginning of the year |
60,624,000 |
606.200 |
|
Add: Issued during the year |
-- |
-- |
|
Outstanding at the end of the year |
60,624,000 |
606.200 |
(b) Rights,
preferences and restrictions attached to shares:
Equity Shares:
The holders of
equity shares are entitled to receive dividends as declared from time to time and
are entitled to one vote per share at meetings of the Company. The dividend
proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of interim
dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the company after distribution of all
preferential amounts, in proportion of their shareholding.
Preference Shares:
(a) The Company
had issued 88,000,000 7.5% Cumulative Convertible Redeemable Preference Shares
of the face value of Rs. 10/- each at a premium of Rs. 20/- each on
preferential basis to the Holding Company, "The Great Eastern Shipping
Company Limited". The Holding Company had in October 2009 decided not to
opt for conversion of the preference shares into equity shares. Consequently,
the terms of the Preference Shares was modified with the Consent of the
Preference shareholders. As per the revised terms, the said Preference shares
would be redeemed at a premium of ` 30.90 per share, payable on redemption, in
six annual installments, as under:
i. 14,500,000
Preference Shares on April 1, 2013
ii. 14,500,000
Preference Shares on April 1, 2014
iii. 14,500,000
Preference Shares on April 1, 2015
iv. 14,500,000
Preference Shares on April 1, 2016
v. 15,000,000
Preference Shares on April 1, 2017
vi. 15,000,000
Preference Shares on April 1, 2018
The Company also
has an option of early redemption by providing one month's notice to the
Holding Company.
The redemption can
be in part or in full subject to a minimum of 2.5 Million shares at a time. In
case of early redemption, the premium on redemption would be determined at such
time so as to provide an effective yield to maturity of 7% to the Holding
Company.
(b) The Company has
also issued 60,624,000 22.5% Cumulative Redeemable Preference Shares of face
value Rs. 10/- each at a premium of Rs. 20/- each on preferential basis to the
Holding Company, "The Great Eastern Shipping Company Limited". The
said Preference shares would be redeemed at a premium of Rs. 20/- per share,
payable on redemption, in four annual installments as, under:
i. 15,156,000
Preference Shares on April 1, 2014
ii. 15,156,000
Preference Shares on April 1, 2015
iii. 15,156,000
Preference Shares on April 1, 2016
iv. 15,156,000
Preference Shares on April 1, 2017
The Company has an
option of early redemption by providing one month's notice to the Holding
Company. Early redemption can be in part or in full subject to a minimum of 2.5
Million shares at a time.
(c) Shares held by The Great Eastern Shipping Company Limited, the
holding company:
|
|
31.03.2012 |
|
Equity Shares 109,242,000 (Previous year 103,782,000) shares |
1092.400 |
|
Preference
Shares 7.5% Cumulative Redeemable
Preference Shares 88,000,000 (Previous year 88,000,000) shares |
880.000 |
|
22.5% Cumulative
Redeemable Preference Shares 60,624,000 (Previous year 60,624,000) shares |
606.200 |
(d) Details of the Shareholders holding more than 5 % of the shares in
the Company:
|
Name of Shareholder |
31.03.2012 |
|
|
|
% of Holding |
No. of Shares
held |
|
Equity Shares The Great Eastern Shipping Company Limited |
98.11% |
109,242,000 |
|
7.5% Cumulative
Redeemable Preference Shares The Great Eastern Shipping Company Limited |
100% |
88,000,000 |
|
22.5% Cumulative
Redeemable Preference Shares The Great Eastern Shipping Company Limited |
100% |
60,624,000 |
The company’s
immediate and ultimate Holding Company is The Great Eastern Shipping Company
Limited, a company incorporated in
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2599.700 |
2545.100 |
1741.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
59.066 |
|
|
3] Employee Stock Options Outstanding |
0.000 |
0.000 |
23.207 |
|
|
4] Reserves & Surplus |
17808.800 |
16427.300 |
10858.396 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
20408.500 |
18972.400 |
12681.669 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6801.100 |
5747.200 |
6160.047 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
6801.100 |
5747.200 |
6160.047 |
|
|
GAIN ON LONG TERM FOREIGN CURRENCY MONETARY ITEMS |
0.000 |
0.000 |
5.701 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
27209.600 |
24719.600 |
18847.417 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
12056.600 |
10088.700 |
9172.138 |
|
|
Capital work-in-progress |
0.000 |
403.900 |
590.396 |
|
|
|
|
|
|
|
|
INVESTMENT |
10378.000 |
10378.100 |
7623.321 |
|
|
DEFERRED TAX ASSETS |
13.100 |
8.800 |
7.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
388.200
|
423.200 |
379.737 |
|
|
Sundry Debtors |
1337.600
|
1106.500 |
1222.788 |
|
|
Cash & Bank Balances |
2028.100
|
2514.000 |
1732.576 |
|
|
Other Current Assets |
116.700
|
124.400 |
0.144 |
|
|
Loans & Advances |
3795.600
|
1893.200 |
139.612 |
|
Total
Current Assets |
7666.200
|
6061.300 |
3474.857 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
555.900
|
839.000 |
351.023 |
|
|
Other Current Liabilities |
1468.900
|
1072.600 |
1571.359 |
|
|
Provisions |
879.500
|
309.600 |
97.913 |
|
Total
Current Liabilities |
2904.300
|
2221.200 |
2020.295 |
|
|
Net Current Assets |
4761.900
|
3840.100 |
1454.562 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
27209.600 |
24719.600 |
18847.417 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
8266.000 |
7526.300 |
6651.464 |
|
|
|
Other Income |
368.300 |
159.100 |
65.481 |
|
|
|
TOTAL (A) |
8634.300 |
7685.400 |
6716.945 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefit expenses |
1254.900 |
990.200 |
518.608 |
|
|
|
Other expenses |
4714.700 |
4419.200 |
4453.631 |
|
|
|
TOTAL (B) |
5969.600 |
5409.400 |
4972.239 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2664.700 |
2276.000 |
1744.706 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
740.200 |
303.400 |
337.658 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1924.500 |
1972.600 |
1407.048 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
666.900 |
519.600 |
527.003 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1257.600 |
1453.000 |
880.045 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
355.700 |
269.200 |
58.286 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
901.900 |
1183.800 |
821.759 |
|
|
|
|
|
|
|
|
|
Less |
TRANSFER TO TONNAGE TAX RESERVE ACCOUNT UNDER
SECTION 115VT OF THE INCOME-TAX ACT, 1961 |
100.000 |
200.000 |
120.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
1752.031 |
1211.318 |
599.143 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
70.000 |
120.000 |
0.000 |
|
|
|
Proposed Dividend on Preference Shares |
145.000 |
0.000 |
76.825 |
|
|
|
Interim Dividend on Preference Shares |
66.000 |
66.000 |
0.000 |
|
|
|
Proposed Dividend on Equity Shares |
222.700 |
211.771 |
0.000 |
|
|
|
Tax on Dividend |
70.400 |
45.316 |
12.759 |
|
|
BALANCE CARRIED
TO THE B/S |
1979.831 |
1752.031 |
1211.318 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Charter Hire |
|
|
|
|
|
|
Agency Income |
25.600 |
|
|
|
|
|
Interest Income |
91.700 |
|
|
|
|
|
Miscellaneous Income |
2.300 |
|
|
|
|
TOTAL EARNINGS |
8385.600 |
8360.400 |
6637.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic
|
6.20 |
12.30 |
8.50 |
|
|
|
Diluted
|
6.19 |
12.28 |
8.48 |
|
%20LIMITED%20-%20209715%2009-Feb-2013_files/image001.gif){kind=small}
%20LIMITED%20-%20209715%2009-Feb-2013_files/image002.gif){kind=small}
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
10.45
|
15.40 |
12.23 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.21
|
19.31 |
13.23 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.38
|
9.00 |
6.96 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.08 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.33
|
0.30 |
0.49 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.64
|
2.73 |
1.72 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
Dues of micro, small and medium enterprises |
0.000 |
0.000 |
0.000 |
|
Dues of other creditors |
555.900
|
839.000 |
351.023 |
|
Total |
555.900 |
839.000 |
351.023 |
|
Note: Disclosure of
amounts due to Micro, Small and Medium enterprises is based on information available
with the Company regarding the status of the suppliers as defined under ‘The
Micro, Small and Medium Enterprises Development Act, 2006’ (MSMED). Amounts
overdue on account of principal amount and interest thereon as on March 31,
2012 are Rs. NIL (previous year Rs. NIL). No interest has been paid during
the year to suppliers registered under the MSMED Act. Trade payable balances are subject to confirmation. |
|||
|
Sr. No. |
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 |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three 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 involved in |
-- |
|
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 |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
BACKGROUND
Subject is a
public company domiciled in
The company is
providing offshore oilfield services with the principal activity of offshore logistics
and drilling services. The company presently owns and operates 4 Platform
Supply Vessels (PSVs), 7 Anchor Handling Tug cum Supply Vessels (AHTSVs) and 2
Remotely Operated Vehicle Support Vessels (ROVSVs) in the Indian and
International markets. The company also operates 2 Jack up Drilling Rigs.
The company is a
subsidiary of The Great Eastern Shipping Company Limited (GESCO) which is
listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
MANAGEMENT DISCUSSION
AND ANALYSIS
COMPANY PERFORMANCE
In FY12, the Company recorded a total income of Rs. 8634.300 millions (previous year Rs. 7685.400 millions) on a standalone basis and Rs. 12335.200 millions (previous year Rs. 9145.700 millions) on consolidated basis. The Company earned a PBIDT of Rs. 2664.700 millions (previous year Rs. 2276.000 millions) on a standalone basis and Rs. 6052.300 millions (previous year Rs. 4550.700 millions) on consolidated basis.
OFFSHORE LOGISTICS
MARKET TREND AND
ANALYSIS
FY12 saw an improvement in global markets in the offshore logistics space. This improvement though, was neither consistent across time nor uniform across geographies. The year began where the last one left off; with tentative employment prospects and utilisation issues across a wide gamut of markets. The improvement in market conditions came to fore in the second half of the year; most markedly in the last quarter.
The
The West African market started off the year tepidly but changing preferences towards more sophisticated dynamic positioning (DP) vessels manifested itself in tightness in availability of suitable units in the second half of the year.
While older, non-DP units traditionally employed in this
market languished,
The Middle Eastern market provided a smaller glimmer of hope
in terms of demand; though not so much in rates for smaller AHTSVs as the market
preference started migrating towards more modern vessels in this category. The
North African /
The Company currently actively participates in the
Brazilian, South East Asian and the Indian markets.
The South East Asian market for anchor handlers (AHTSVs) saw
anaemic demand growth for small/medium size anchor handlers while the larger,
higher-spec anchor handlers experienced a healthier demand and thus, better
utilisation and rates. The increasing demand for PSVs in
On the asset market front, secondhand transaction activity remained at subdued levels through the year. Ordering activity was more focused on PSVs as compared to AHTSVs, though there were signs of reviving interest in ordering larger AHTSVs by the end of the year. There was no definite trend in asset prices, though for the most part, the year ended with prices somewhat higher than at the start.
COMPANY PERFORMANCE
During FY12, the Company further consolidated its position
in the Asian and Indian markets, increased penetration within the Australasian
clientele and improved operational focus in
The year began with ten vessels of the Company's fleet of seventeen employed on longer term charters with the remaining seven operating under shorter term contracts of six months or less. The year ended with the fleet having grown to nineteen vessels with the deliveries of two 150-T anchor handlers. Twelve of these were on long term charters, with seven chartered out on shorter durations.
FLEET CHANGES
As on March 31, 2012, the operating fleet of the Company (including Subsidiaries) stood at nineteen vessels which includes four Platform Supply Vessels (PSVs), nine 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 (including subsidiaries) took delivery of the following vessels:
1. AHTSV 'Greatship Vidya' on Jan 06, 2012
2. AHTSV 'Greatship Vimla' on Feb 09, 2012
During the year, the Company's
OUTLOOK FOR OFFSHORE
LOGISTICS MARKET
Against a backdrop of elevated oil prices and expectations
of global E&P spend increase for a third year in a row, a sense of cautious
optimism pervades the industry. However, the market performance is likely to
vary by asset categories and region. The Brazilian market is once again likely
to be the star performer in terms of headline demand, but challenges for
operating within that market are likely to persist.
Notwithstanding the global economic uncertainties, this optimism is tempered with a couple of other caveats. Firstly, the expectation for improvement during FY13 is more back ended, in line with the expected flow of drilling rig deliveries. Secondly, the Company's own long term chartered fleet that has been enjoying healthy rates contracted in a more rewarding market will come up for repricing during this year.
Thus, given the outlook for the market, the offshore logistics business looks forward to a consistent and positive performance in the coming year.
DRILLING SERVICES
MARKET TREND AND
ANALYSIS
The benchmark Brent Oil price stayed comfortably above the US$ 100 / barrel mark for all of FY12 driving positive sentiment in the E&P space. The resultant high exploration and development activity led to increasing utilization and day rates continued their gradual uptrend witnessed since rebounding from the lows seen in FY10. The jack up rig market witnessed utilisation levels reaching 90% for assets at the modern end. The day rates during the year were around US$130,000, though the rates moved up above these levels for fixtures concluded in the last quarter.
The vintage end of the fleet, which had encountered the
prospects of increasing stackups, witnessed a turnaround with stacked-up
vessels get back into employment by the end of the year. The jackup market
witnessed demand increase in the Middle East, South East Asia and
Given the positive market conditions, the year saw an upsurge in ordering with 67 rigs (including 26 jackups) ordered during the year. There was a significant element of replacement demand in the new orders as established drilling companies looked to replace their older units with modern rigs having higher specifications and operational capability which resulted in a gradual rise in new building prices.
On the corporate front, there was a further move towards consolidation with the Hercules purchase of Seahawk's assets and Transocean's acquisition of Aker Drilling. Company Performance
The company's drilling fleet comprises three drilling rigs,
the Greatdrill Chetna and the Greatdrill Chitra, under operation and one new
building, Greatdrill Chaaya, due for delivery from the yard in the coming year.
Greatdrill Chetna registered another strong operational performance during the
ONGC charter this year. The rig completed this charter after the end of FY12
with nil LTIs (Lost Time Incidents). The rig would be employed with British Gas
under a term charter for operations off west coast
Greatdrill Chaaya is currently under construction at the
Lamprell yard in
FLEET CHANGES
There were no changes to the drilling fleet during the year.
OUTLOOK FOR DRILLING
MARKET
The current outlook for oil prices is for Brent to stay above the US$ 100 / barrel level for the coming year. E&P spending surveys suggest that global capex will grow by around 10% y-o-y this year with potential upside. These estimates however, are based on a moderately growing global economy and exclude effects on any geopolitical events; both assumptions that are far from certain for the coming year.
Given the high utilisation levels and increasing duration of contracts, they can expect the gradual uptrend to continue at least in the short term. However, with increased supply coming in from 2013 onwards they might see such trend being capped beyond a point. Geographically, they expect that the Middle Eastern and South East Asian market will continue to take in jackups, with the Indian market providing healthy support too.
SUBSEA SOLUTIONS
MARKET TREND AND
ANALYSIS
The health of the subsea market showed relative improvement in FY12, more so in the second half; compared to the dismal conditions of the previous year. Though such improving market conditions could lead to FY12 being labeled as the 'turnaround year' in the subsea market; the business environment prevailing during the year was not without its challenges, especially for lower tier contractors.
After a drop in activity in
Closer to home; activity in the Asia Pacific market was healthier though pressure on project margins continued in the competitive landscape. Australian activity grew slower than expected as the initial phases of the projects' cycle experienced lengthening durations due to local resource constraints within the market.
The impact of these market developments was felt by Tier-I contractors in somewhat improved operating margins in 2012; but more so in their order books, which grew both in size and length. For many smaller contractors/ subcontractors, the year represented a period of loss reduction rather than a return to full profitability.
COMPANY PERFORMANCE
The Company's subsidiaries, Greatship Subsea Solutions
Singapore Pte Limited (GSS) and Greatship Subsea Solutions Australia Pty
Limited (GSA) operated in the Subsea markets primarily in
However, the financial performance came in far below expectations as pricing pressures capped project margins and the business struggled to recover fixed overheads.
OUTLOOK FOR SUBSEA
MARKET
Within the markets that they currently operate in,
The global outlook on subsea over the longer term remains
positive, with certain studies forecasting a doubling of the market within the
next five years. This will be driven by a significant number of upcoming
CONTINGENT
LIABILITIES
(a) Guarantees
given by banks Rs. 1245.400 millions (previous year Rs. 525.900 millions).
(b) Corporate
guarantees given on behalf of subsidiary companies Rs. 20472.500 millions
(previous year Rs. 21397.100 millions).
(c) Customs duty
in respect of vessel provisionally cleared against security bond furnished by
the company Rs. 88.200 millions (previous year Rs. 88.200 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. 272.500 millions (previous year
Rs. 272.500 millions). 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. 1.200 millions (previous year Rs.1.200 millions).
(f) Estimated
amount of contracts, net of advances paid thereon, remaining to be executed on
capital account and not provided for - Rs. NIL (previous year Rs. 3174.200
millions).
FIXED ASSETS:
Ř Fleet
Ř Leasehold Improvements
Ř Furniture and Fixtures
Ř Computers
Ř Office Equipments
Ř Vehicles
Ř Plant and Machinery
Ř Software
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 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 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. 53.57 |
|
|
1 |
Rs. 84.25 |
|
Euro |
1 |
Rs. 71.79 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
BVA |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.