1. Summary Information
|
|
|
Country |
India |
|
Company Name |
COCHIN SHIPYARD
LIMITED |
Principal Name 1 |
Cmde K Subramaniam |
|
Status |
Good |
Principal Name 2 |
Mr. Ravikumar Roddam |
|
|
|
Registration # |
09-002414 |
|
Street Address |
Administrative
Building, 39/6080 Cochin Shipyard Premises, Perumanoor M. G. Road, Ernakulam
- 682015, Kerala |
||
|
Established Date |
29.03.1972 |
SIC Code |
-- |
|
Telephone# |
91-484-2361181 |
Business Style 1 |
Shipbuilding |
|
Fax # |
91-484-2370897 |
Business Style 2 |
Repair of Ships/Offshore Structures |
|
Homepage |
Product Name 1 |
Ships-Building of Ships |
|
|
# of employees |
634
(Approximately) |
Product Name 2 |
Shiprepair |
|
Paid up capital |
Rs.1,524,220,000/- |
Product Name 3 |
-- |
|
Shareholders |
Not Available |
Banking |
State Bank of India |
|
Public Limited Corp. |
NO |
Business Period |
41 Years |
|
IPO |
NO |
International Ins. |
- |
|
Public |
NO |
Rating |
A
(66) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
-- |
-- |
-- |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
19,737,125,000 |
Current Liabilities |
13,659,491,000 |
|
Inventories |
3,625,366,000 |
Long-term Liabilities |
0,000 |
|
Fixed Assets |
1,926,094,000 |
Other Liabilities |
1,856,023,000 |
|
Deferred Assets |
97,157,000 |
Total Liabilities |
15,515,514,000 |
|
Invest& other Assets |
638,097,000 |
Retained Earnings |
8,984,105,000 |
|
|
|
Net Worth |
10,508,325,000 |
|
Total Assets |
26,023,839,000 |
Total Liab. & Equity |
26,023,839,000 |
|
Total Assets (Previous Year) |
25,565,918,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
14,048,515,000 |
Net Profit |
1,723,269,000 |
|
Sales(Previous yr) |
14,617,153,000 |
Net Profit(Prev.yr) |
2,275,277,000 |
|
Report Date : |
22.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
COCHIN SHIPYARD LIMITED |
|
|
|
|
Registered
Office : |
Administrative Building, 39/6080 Cochin Shipyard Premises, Perumanoor
M. G. Road, Ernakulam - 682015, Kerala |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
29.03.1972 |
|
|
|
|
Com. Reg. No.: |
09-002414 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1524.220 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U63032KL1972HOI002414 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHNC00784A |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in Shipbuilding and Repair of Ships/Offshore
Structures. |
|
|
|
|
No. of Employees
: |
634 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
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 42000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a Government of India company. It is a well established and reputed company having fine track record.
There appears some dip in the turnover and profitability of the company. It
is due to economic recessionary condition and the downturn in the shipping
and ship building sector, However, fundamentals of the company is strong and
healthy. Creditor and Lendors feel
confident because of the government exposure. Trade relations are fair. Business is active. Payments are reported to
be regular and as per commitment. 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
SHORT TERM BANK FACILITIES : CARE A1+ |
|
Rating Explanation |
Very strong degree of safety it carry lowest credit risk. |
|
Date |
12.03.2012 |
|
Rating Agency Name |
CARE |
|
Rating |
LONG TERM BANK FACILITIES : CARE A4 |
|
Rating Explanation |
High degree of safety it carry very low credit risk. |
|
Date |
12.03.2012 |
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.
LOCATIONS
|
Registered Office : |
Administrative Building, 39/6080 Cochin Shipyard Premises, Perumanoor
M. G. Road, Ernakulam - 682015, Kerala, India |
|
Tel. No.: |
91-484-2361181 |
|
Fax No.: |
91-484-2370897 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
Owned |
DIRECTORS
As on 31.03.2012
|
Name : |
Cmde K Subramaniam |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Ravikumar Roddam |
|
Designation : |
Director (Finance) |
|
|
|
|
Name : |
Mr. P Vinayakumar |
|
Designation : |
Director (Technical) |
|
|
|
|
Name : |
Capt R S Sundar |
|
Designation : |
Director (Operations) |
|
|
|
|
Name : |
Mr. M C Jauhari, IAS |
|
Designation : |
Official Part Time Director, Joint Secretary (Shipping) Ministry of Shipping |
|
|
|
|
Name : |
Mr. L N Vijayaraghavan, IAS (Retd.) |
|
Designation : |
Non Official Part Time Director |
|
|
|
|
Name : |
Vice Admiral (Retd.) S K K Krishnan |
|
Designation : |
Non Official Part Time Director |
|
|
|
|
Name : |
Mr. M Raman, IAS (Retd.) |
|
Designation : |
Non Official Part Time Director |
KEY EXECUTIVES
|
Name : |
Mrs. V Kala |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Jose Mathew |
|
Designation : |
Executive Director (Design) |
|
|
|
|
Name : |
Mr. Baby Thomas |
|
Designation : |
Executive Director (Materials) |
|
|
|
|
Name : |
Mr. Joe Joe Peter |
|
Designation : |
Chief General Manager (Planning & IQC) |
|
|
|
|
Name : |
Mr. Sunny Thomas |
|
Designation : |
General Manager (Technical) |
|
|
|
|
Name : |
Mr. Paul Ranjan |
|
Designation : |
General Manager (Finance – I) |
|
|
|
|
Name : |
Mr. N V Suresh Babu |
|
Designation : |
General Manager (Ship Repair) |
|
|
|
|
Name : |
Mr. Madhu S Nair |
|
Designation : |
General Manager (Marketing) |
|
|
|
|
Name : |
Mr. Bejoy Bhasker |
|
Designation : |
General Manager (Defence Projects) |
|
|
|
|
Name : |
Mr. K J Ramesh |
|
Designation : |
General Manager (Human Resource) |
|
|
|
|
Name : |
Mr. T N Sudhakar |
|
Designation : |
General Manager (Finance – II) |
|
|
|
|
Name : |
Mr. Murugaiah M |
|
Designation : |
General Manager (Hull and HE) |
|
|
|
|
Name : |
Mr. M D Varghese |
|
Designation : |
General Manager (Industrial Relations & Administration) |
|
|
|
|
Name : |
Mr. K I Koshy |
|
Designation : |
General Manager (Materials) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Not Available
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Shipbuilding and Repair of Ships/Offshore
Structures. |
||||||
|
|
|
||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
634 (Approximately) |
|
|
|
|
Bankers : |
· State Bank of Travancore · State Bank of India · Syndicate Bank ·
Union Bank of India |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Menon and Ayyar Chartered Accountants |
|
Address : |
Ernakulam, Kerala, India |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1200000 |
7% Non-cumulative Preference shares |
Rs.1000/- each |
Rs.1200.000 Millions |
|
130000000 |
Equity Shares |
Rs.10/- each |
Rs.1300.000 Millions |
|
|
Total |
|
Rs.2500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
391420 |
7% Non-cumulative Preference shares * |
Rs.1000/- each |
Rs.391.420
Millions |
|
113280000 |
Equity Shares ** |
Rs.10/- each |
Rs.1132.800
Millions |
|
|
Total |
|
Rs.1524.220 Millions |
Notes:
* (Due for redemption progressively from 26 April 2012).
(The above shares have been issued as fully paid-up by conversion of loans from Govt of India as part of capital restructuring which were originally due for redemption on 26 April 2005 and were reissued with retrospective effect.)
** (of the above 54,99,500 shares have been issued as fully paid up without payment being received in cash towards consideration of net assets taken over from Govt of India)
|
Particulars |
Preference Shares |
|
|
As at 31st March, 2012 |
||
|
No. of Shares |
Rs. In Millions |
|
|
Shares outstanding at the beginning of the year |
791420 |
791.420 |
|
Shares redeemed during the year |
400000 |
400.000 |
|
Shares outstanding at the end of the year |
391420 |
391.420 |
|
Particulars |
Equity Shares |
|
|
As at 31st March, 2012 |
||
|
No. of Shares |
Rs. In Millions |
|
|
Shares outstanding at the beginning of the year |
113280000 |
1132.800 |
|
Shares outstanding at the end of the year |
113280000 |
1132.800 |
As the Company is a
fully owned Government of India Company, 100% shares are held by the President
of India
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
1524.220 |
1924.220 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
8984.105 |
7753.757 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
10508.325 |
9677.977 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
10508.325 |
9677.977 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
1926.094 |
1906.748 |
|
|
Capital work-in-progress |
|
636.179 |
371.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
1.918 |
1.918 |
|
|
DEFERREX TAX ASSETS |
|
97.157 |
231.247 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
3625.366 |
2347.588 |
|
|
Sundry Debtors |
|
7799.210 |
11026.053 |
|
|
Cash & Bank Balances |
|
9088.960 |
6902.509 |
|
|
Other Non-Current Assets |
|
574.599 |
812.513 |
|
|
Other Current Assets |
|
796.562 |
1165.715 |
|
|
Loans & Advances |
|
1477.794 |
799.927 |
|
Total
Current Assets |
|
23362.491 |
23054.305 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
3906.286 |
2280.006 |
|
|
Other Current Liabilities |
|
9753.205 |
10792.593 |
|
|
Provisions |
|
1856.023 |
2815.342 |
|
Total
Current Liabilities |
|
15515.514 |
15887.941 |
|
|
Net Current Assets |
|
7846.977 |
7166.364 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
10508.325 |
9677.977 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
14048.515 |
14617.153 |
|
|
|
Other Income |
|
766.933 |
1274.588 |
|
|
|
TOTAL (A) |
|
14815.448 |
15891.741 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
|
6719.258 |
7159.008 |
|
|
|
Changes in Inventories of Work-in-progress |
|
169.999 |
(136.279) |
|
|
|
Sub Contract and Other Direct Expenses |
|
2160.703 |
1937.399 |
|
|
|
Employee Benefits Expense |
|
1661.122 |
1664.962 |
|
|
|
Other Expenses |
|
1201.130 |
1266.580 |
|
|
|
Provision for Anticipated Losses and Expenditure |
|
61.607 |
99.596 |
|
|
|
Expenses Allocated to Capital Works |
|
0.000 |
(2.191) |
|
|
|
TOTAL (B) |
|
11973.819 |
11989.075 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
2841.629 |
3902.666 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
131.209 |
289.809 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
2710.420 |
3612.857 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
180.727 |
170.560 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
2529.693 |
3442.297 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
806.424 |
1167.020 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
|
1723.269 |
2275.277 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Income from shipbuilding |
|
6771.997 |
9016.535 |
|
|
TOTAL EARNINGS |
|
6771.997 |
9016.535 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
3894.284 |
3829.323 |
|
|
|
Stores & Spares |
|
655.290 |
547.698 |
|
|
|
Capital Goods |
|
260.306 |
205.763 |
|
|
TOTAL IMPORTS |
|
4809.880 |
4582.784 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
15.21 |
20.09 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
|
11.63 |
14.32 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
18.01 |
23.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
10.00 |
13.79 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.24 |
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
1.48 |
1.64 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.51 |
1.45 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last two years |
Yes |
|
12] |
Profitability for last two 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 |
No |
|
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 |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
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 |
LITIGATION DETAILS
|
KERALA HIGH COURT CASE STATUS INFORMATION SYSTEM Case Status : PENDING Status of WRIT PETITION (CIVIL 26349 OF 2012 M/S. N-TECH
TOOLS VS. COCHIN SHIPYARD LIMITED Pet’s Adv. : SRI. BABU KARUKAPADATH Res’s Adv. : SRI. K. ANAND (SR.) Last Listed
On : Tuesday, January 15, 2013 Category : Tender
Case Updated on : Tuesday, January 15, 2013 |
FINANCIAL PERFORMANCE
Subject continued to achieve good performance in the year 2011-12 albeit a marginal reduction in the turnover and profits. The turnover for the year was marginally lower at Rs.14048.500 Millions as compared to 14617.200 Millions in the year 2010-11. The net Profit was 1723.300 Millions as compared to 2275.300 Millions for the previous year. This performance is creditable considering the economic recessionary conditions and the downturn in the shipping and ship building sector. The reduction in the profits and turnover during the year were owing to several factors, primarily due to the reduction in turnover from Indigenous Aircraft Carrier (IAC) and the lack of shipbuilding subsidy.
Cochin Shipyard is hopeful of concluding the phase II contract with the Ministry of Defence (Navy) for IAC in the near future. The yard is also on the threshold of signing a contract for one multipurpose vessel for the Director General of Lighthouses and Lightships. Discussions with ONGC are in an advanced stage to secure an order for a multi streamer Seismic survey vessel. The lack of fresh shipbuilding orders due to the continued oversupply in the shipping market is of concern.
GLOBAL INDUSTRY
SCENARIO
During the year 2011-12, global Shipbuilding and Ship repair industry continued to experience gloomy outlook following the economic meltdown of 2008-09. The industry continues to feel the brunt of huge over-supply and lack of liquidity for funding of new shipbuilding projects. While there has been a growth in global trading volumes, the charter rates of shipping industry continued to remain low and are at 40% of the rates of 2005.
According to the Clarksons Research Report, due to the low charter rates coupled with over capacity, shipbuilding companies continued to face difficult credit situation and liquidity crunch. This has forced some small scale players to succumb to competitive pressures worldwide.
Therefore, given the above situation the shipbuilding market is likely to be by and large fragile in the short term. However, analysis suggested that niche segments like LNG, LPG and Offshore continue to hold some promise for growth in the foreseeable future.
INDIAN SHIPBUILDING
AND SHIPREPAIR INDUSTRY – OUTLOOK
The Indian shipbuilding industry continues to be affected by the adverse global recessionary trends and by lack of orders. The setting up of large private shipyards viz M/s Pipavav Offshore and Defence Limited, Gujarat and L&T Shipbuilding Yard, Chennai, in addition to the capacity addition undertaken by the existing players has increased capacity and competition forcing the industry to focus on defence and offshore segments. The growing needs of the Defence sector viz the Indian Navy and the Coast Guard is promising. Lack of a policy support for commercial Shipbuilding by way of an incentive scheme or subsidy has generated a negative sentiment in the industry. The growth of Indian shipbuilding which registered a high of 1.24% in 2007 has returned to 0.01% of the global order book in 2009. Notwithstanding the projections made in the Maritime Agenda 2010, unless there is positive and sustained policy support for the industry, it is unlikely that there would be a revival of this sector. Apart from the defence sector, the offshore, oil and natural gas industry are the other segments which hold out some promise of growth for the industry.
In the ship repair sector, the public sector undertakings continued to dominate with about 70% of market share. As per the available reports the number and value of ship repair activity registered a stronger growth from 2006-07 onwards. There is tremendous opportunity in the ship repair sector owing to very few ship repair yards located between Middle East and Singapore. These yards, too, do not have the infrastructure to repair large vessels. Moreover increasing offshore and production spend in the Indian EEZ will provide a locational advantage to a facility that is setup for repair of offshore assets on the Indian coast.
SEGMENT WISE/ PRODUCT
WISE PERFORMANCE
The company is engaged in two major activities viz shipbuilding and Repair of Ships/Offshore structures. Segment wise analysis has been made on the above basis and amounts allocated on a reasonable basis.
CONTINGENT
LIABILITY:
(Rs.
In Millions)
|
|
Particulars |
31.03.2012 |
31.03.2011 |
Brief Description
of the nature and Obligation |
|
a |
Claims against the
Company not acknowledged as debt |
|
|
|
|
i |
Vigil Marine Services |
290.410 |
230.724 |
Claim for agency commission of USD 2.5 million + interest @ 18 % pa thereon for 7 years. Presently under arbitration |
|
|
|
|
|
|
|
b |
Guarantees |
|
|
|
|
|
Letters of credit |
3491.591 |
1977.460 |
Represents LC opened by the company in various banks for procurement of materials/assets |
|
|
|
|
|
|
|
c |
Other money for
which the company is contingently liable |
|
|
|
|
i |
Greater Cochin Development Authority |
10.000 |
40.000 |
Claim raised by GCDA for the land acquired for the company is settled subject to approval by CSL Board. |
|
Ii |
Customs duties, Demurrages and Sales Tax |
1147.000 |
808.500 |
Customs duty for materials under Bond |
|
iii |
Penalty levied by KVAT authorities on export of ships |
254.682 |
254.682 |
Hearing on the appeal filed before the KVAT Appellate Tribunal has been completed. Reserved for order. Detailed notes below |
|
iv |
Demand for KGST/KVAT for the Asst Years 2001-02,2004-05, 2005-06 and 2007-08 mainly on the subject of KVAT on export of ships |
853.115 |
26.981 |
2001-02 Rs.7.344 Millions 2004-05 Rs.19.637 Millions 2005-06 Rs.278.663 Millions 2007-08 Rs.547.471 Millions Under appeal. Stay of collection of tax obtained in all cases. Detailed notes below |
|
v |
Income Tax |
11.857 |
11.857 |
Relating to Asst years 2000-01, 2002-03, 2003-04, 2004-05, 2005-06 and 2008-09 due to various disallowances by the Assessing Officer. Detailed notes below |
|
vi |
Service Tax |
164.747 |
164.747 |
Demand of Service Tax on IAC P-71 (Design Consultancy) as per Show Cause Notice issued. Reply to Show Cause Notice filed. No further action from Dept side. |
|
vii |
Service Tax |
32.290 |
32.290 |
Service Tax on the amount paid towards Brokerage and commission. Presently under appeal. |
FIXED ASSETS:
· Land (Freehold)
· Buildings
· Plant and Equipment
· Furniture and Fixtures
· Vehicles
· Office Equipment
· Docks and Quays
· Railway sidings
· Electrical Installation
· Drainage and water supply
· Vessels
· Books
· Computer Software
PRESS RELEASE
COCHIN SHIPYARD LAUNCHES FIRST FAST PATROL VESSEL FOR COAST GUARD
9TH JANUARY, 2013
Cochin Shipyard Limited has launched the first
fast patrol vessel (FPV), being built for the Indian Coast Guard, on Wednesday.
The vessel — Aadesh — was launched by Jayasree
Muralidharan, in the presence of M.P. Muralidharan, Director General, Indian
Coast Guard (ICG).
K. Subramaniam, Chairman and Managing
Director, senior officials of the Coast Guard, Indian Navy and Cochin Shipyard
Limited were present.
The vessel is the first in a series of 20
numbers FPVs contracted by CSL for the ICG.
The contract was signed in 2010 with the
delivery of the last vessel slated for 2017.
These have a designed speed of 33 knots with
propelled water jets to attain the speed.
The primary role of the vessel include
fisheries protection and monitoring, patrol within exclusive economic zone
(EEZ) and coastal patrol , anti smuggling, search and rescue operations and for
anti piracy operations.
The vessels have a secondary role of providing
communication link and escort convoys during hostilities and war time.
These high speed FPVs, though small in size,
are complex and technologically challenging.
The ship has been designed by the Kochi-based
SEDS and this is the first collaboration between CSL and a local design house,
a release said.
The yard also launched two other platform
supply vessels for PSV Holdings Inc, Cyprus.
Cochin Shipyard currently has 27 ships on
order consisting of 20 FPVs, five offshore support ships for Indian and foreign
owners, one buoy tender vessel for the Department of Lighthouses and Lightships
and the Prestigious Aircraft Carrier for the Indian Navy.
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.53.87 |
|
|
1 |
Rs.85.53 |
|
Euro |
1 |
Rs.71.78 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
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 |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.