MIRA
INFORM REPORT
|
Report Date : |
05.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN SHIPYARD LIMITED |
|
|
|
|
Registered
Office : |
Gandhigram, Gandhigram Post Office, Visakhapatnam – 530005, Andhra
Pradesh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
21.01.1952 |
|
|
|
|
Com. Reg. No.: |
01-076711 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.3019.922
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U74899AP1952GOI076711 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
VPNH00128C/ VPNH00131F/ VPNH00129D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACH4275H/ AAACH4275P |
|
|
|
|
Legal Form : |
A Government of India
Company having limited Liability. |
|
|
|
|
Line of Business
: |
Undertake Ship Building and Repairs, for Defense, Coast Guard,
Ports, and The Oil Industry. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exists |
|
|
|
|
Comments : |
Subject is a government of India Company. Financial position of the
company appears to be under pressure. There appears huge accumulated losses recorded
by the company. However, Trade relations are reported as fair. Business is
active. Payments are reported to be slow but correct. Even though there appears huge accumulated losses, the company can be
considered for business dealings at usual trade terms and conditions, since
it is a government company. |
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) |
|
|
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 |
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 DECLINED BY
|
Name : |
Mr. Suryarao |
|
Designation : |
H R Manager |
|
Contact No.: |
91-9993792200 |
|
Date : |
01.03.2013 |
LOCATIONS
|
Registered/ Head office/
Factory : |
Gandhigram, Gandhigram Post Office, Visakhapatnam – 530005, Andhra
Pradesh, India |
|
Tel. No.: |
91-891-2577404/ 2577437/ 2577659/ 2577502/ 2577356 |
|
Fax No.: |
91-891-2577502/ 2577356/ 667 |
|
E-Mail : |
|
|
Website : |
www.hsl.gov.in |
|
|
|
|
Regional Office : |
C/o. Piccasso, 202 Churchgate Chambers, 5, New Marine Lines, Mumbai
400020, |
|
Tel. No.: |
91-22-22624560/ 22615119/ 22871166 |
|
Fax No.: |
91-22-22871166 |
|
|
|
|
Regional Office : |
406, Vikaram Towers, 16 Rajendra Place, New Delhi – 110008, India |
DIRECTORS
(AS ON 31.03.2012)
|
Name : |
Mr. Radm N K
Mishra |
|
Designation : |
Chairman and
Managing Director |
|
Address : |
Nauka Shipyard House,
8 Harbour Park, Vishakapatnam – 530003, Andhra Pradesh, India |
|
Date of Birth/Age : |
21.11.1955 |
|
Date of Appointment : |
01.08.2011 |
|
DIN No.: |
03589730 |
|
|
|
|
Name : |
Mr. Rakesh Mahajan |
|
Designation : |
Director (Finance and Commercial) |
|
Address : |
03, Varuna park, Waltair Uplands, Vishakapatnam – 530003, Andhra Pradesh, India |
|
Date of Birth/Age : |
22.09.1962 |
|
Date of Appointment : |
01.12.2008 |
|
DIN No.: |
02443053 |
|
|
|
|
Name : |
Mr. Gyanesh Kumar, IAS |
|
Designation : |
Director |
|
Address : |
Q.T.R. No.8-2, Sector 12, A Block, R K Puram, New Delhi – 110066,
India |
|
Date of Birth/Age : |
27.01.1964 |
|
Date of Appointment : |
22.02.2010 |
|
DIN No.: |
02046823 |
|
|
|
|
Name : |
Mr. Nadella Niranjan Kumar |
|
Designation : |
Director, AVSM, VSM |
|
Address : |
Delhi Suite Naval Officer Mess Varuna, New Delhi – 110010, India |
|
Date of Birth/Age : |
24.03.1954 |
|
Date of Appointment : |
22.02.2010 |
|
DIN No.: |
02946230 |
|
|
|
|
Name : |
Dr. Devi Singh |
|
Designation : |
Director |
|
Address : |
Indian Institute of Mangement Prabandh Nagar, off Sitapur Road,
Lucknow – 226103, Uttar Pradesh, India |
|
Date of Birth/Age : |
02.09.1952 |
|
Date of Appointment : |
18.05.2011 |
|
DIN No.: |
00015681 |
|
|
|
|
Name : |
Mr. Kollengode Sivaramakrishnan Subramanian |
|
Designation : |
Director (Ship Building) |
|
Address : |
02, Varuna park, Waltair Uplands, Vishakapatnam – 530003, Andhra Pradesh, India |
|
Date of Birth/Age : |
07.10.1954 |
|
Date of Appointment : |
04.06.2011 |
|
DIN No.: |
03549448 |
|
|
|
|
Name : |
Mr. Nagendra Prasad Kestur Lakshminarasimhiya |
|
Designation : |
Director (Corporate Planning and Personnel) |
|
Address : |
P 600 C, Nofra – II, Airport Road, Dabolim – 403801, Goa, India |
|
Date of Birth/Age : |
14.11.1955 |
|
Date of Appointment : |
19.12.2011 |
|
DIN No.: |
05145782 |
|
|
|
|
Name : |
Mr. Ashok Bhal |
|
Designation : |
Director (Strategic Projects) |
KEY EXECUTIVES
|
Name : |
Mr. Inaitula Baig |
|
Designation : |
Company Secretary |
|
Address : |
N-2, HSL Colony, Gandhigram, Visakhapatam – 530 005, |
|
Date of Birth/Age : |
28.04.1968 |
|
Date of Appointment : |
04.04.2008 |
|
PAN No.: |
AFFPB8841N |
|
|
|
|
Name : |
Mr. Suryarao |
|
Designation : |
H R Manager |
|
|
|
|
PERMANENT
SPECIAL INVITEES: |
|
|
Name : |
Mr. DSP Varma |
|
Designation : |
PVSM, AVSM, VSM In (Retd.) DG, Akankshah |
|
|
|
|
Name : |
Mr. Rajnish Kumar |
|
Designation : |
Addl. FA and Joint Secretary/ Ministry of Defence (Fin) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.03.2012)
|
Names of Shareholders |
No. of Shares |
Percentage |
|
|
|
|
|
President of India |
3019922 |
100% |
|
|
|
|
|
Total |
3019922 |
100% |
BUSINESS DETAILS
|
Line of Business : |
Undertake Ship Building and Repairs, for Defense, Coast Guard,
Ports, and The Oil Industry. |
||||||||||||||||
|
|
|
||||||||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2012)
|
Particulars |
Unit |
2011-12 |
|
|
|
|
|
Installed capacity as reckoned (at 3.5 Standard Pioneer Ships per annum) |
DWT |
75250 |
|
Actual Production achieved |
DWT |
56437 |
|
Capacity Utilisation |
Percentage |
75% |
|
Productivity achieved |
M.hrs/DWT |
45 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Bankers : |
·
Indian
Bank, 30-9-3, Sarada
Street, Dabagardens, Visakhapatnam - 530020, Andhra Pradesh, India ·
State
Bank of ·
UCO
Bank ·
Syndicate
Bank ·
Canara
Bank |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
G R Kumar and Company Chartered Accountant |
|
Address : |
9, Merry Life Apartment, Doctors, Colony, Peda Waltair Visakhapatnam –
530017, Andhra Pradesh, India |
|
PAN No.: |
AABFG9812F |
CAPITAL STRUCTURE
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3040000 |
Equity Share |
Rs.1000/- each |
Rs.3040.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3019922 |
Equity Share |
Rs.1000/- each |
Rs.3019.922
Millions |
|
|
|
|
|
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 |
3019.922 |
3019.922 |
3019.922 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.950 |
|
|
4] (Accumulated Losses) |
(10159.906) |
(9300.072) |
(9851.021) |
|
|
NETWORTH |
(7139.984) |
(6280.150) |
(6830.149) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1048.231 |
931.982 |
963.967 |
|
|
2] Unsecured Loans |
3722.125 |
6276.725 |
5938.379 |
|
|
TOTAL BORROWING |
4770.356 |
7208.707 |
6902.346 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
(2369.628) |
928.557 |
72.197 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
753.826 |
768.377 |
687.715 |
|
|
Capital work-in-progress |
144.345 |
124.007 |
124.705 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
1101.863 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2531.911
|
3316.524
|
4788.976 |
|
|
Sundry Debtors |
1287.762
|
1396.024
|
1100.661 |
|
|
Cash & Bank Balances |
5195.943
|
3058.620
|
603.156 |
|
|
Other Current Assets |
2093.316
|
2176.403
|
635.428 |
|
|
Loans & Advances |
790.027
|
1504.495
|
1347.449 |
|
Total
Current Assets |
11898.959
|
11452.066
|
8475.670 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
1668.506
|
1690.594
|
2190.337 |
|
|
Other Current Liabilities |
9884.381
|
6917.029
|
6841.446 |
|
|
Provisions |
3613.871
|
2808.270
|
1285.973 |
|
Total
Current Liabilities |
15166.758
|
11415.893
|
10317.756 |
|
|
Net Current Assets |
(3267.799)
|
36.173
|
(1842.086) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
(2369.628) |
928.557 |
72.197 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5343.777 |
6344.958 |
5417.217 |
|
|
|
Other Income |
402.975 |
271.785 |
967.169 |
|
|
|
TOTAL (A) |
5746.752 |
6616.743 |
6384.386 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials Changed |
2558.481 |
4898.126 |
|
|
|
|
Sub-contracting and Other Direct Expenses |
990.724 |
797.843 |
|
|
|
|
Employee benefits |
1999.048 |
2574.832 |
|
|
|
|
Other expenses |
284.650 |
268.207 |
6133.683 |
|
|
|
Provisions and losses |
563.362 |
718.943 |
|
|
|
|
Prior period expenditure (net) |
52.158 |
56.278 |
|
|
|
|
Ransfers |
(39.747) |
(42.785) |
|
|
|
|
Grant in aid from GoI (FR) |
0.000 |
(4526.800) |
|
|
|
|
TOTAL (B) |
6408.676 |
4744.644 |
6133.683 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(661.924) |
1872.099 |
250.703 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
118.242 |
143.464 |
524.155 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(780.166) |
1728.635 |
(273.452) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
79.668 |
76.773 |
64.575 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(859.834) |
1651.862 |
(338.027) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
1101.863 |
(361.127) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(859.834) |
549.999 |
23.243 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
(9851.021) |
(9874.264) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
(9301.022) |
(9851.021) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
33.785 |
1164.090 |
1489.267 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials, Components and Spares Parts and Capital Goods |
1922.255 |
2988.891 |
4062.008 |
|
|
TOTAL IMPORTS |
1922.255 |
2988.891 |
4062.008 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(284.72) |
182.12 |
8.00 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(14.96)
|
8.31
|
0.36 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(16.09)
|
26.03
|
(6.24) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.80)
|
13.52
|
(3.69) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
(0.26)
|
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(0.67)
|
(1.15)
|
(0.57) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.78
|
1.00
|
0.82 |
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 |
Yes |
|
8] |
No. of employees |
No |
|
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 |
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 |
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 |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
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 |
No |
------------------------------------------------------------------------------------------------------------------------------
LITIGATION DETAILS
|
TREVC 66/2011 |
TREVCSR |
CASE IS: PENDING
|
|
|
PETITIONER |
RESPONDENT |
||
|
The State of A.P., Visakhapatnam |
Vs M/s. Hindustan Shipyard Limited, Visakhapatnam |
||
|
PET. ADV.: Balaji Varma (SPL C For CT) |
RESP. ADV.: Sarveswar Rao |
||
|
Subject: Tax Revision Cases |
District: Visakhapatnam |
||
|
|
|||
|
Filing Dated: 16.08.2011 |
Posting Stage: For Orders of Court |
||
|
Reg, Date: 26.09.2011 |
Listing Date: 20.12.2011 |
||
|
|
|||
|
HON’BLEJUDGES(S): |
V. V. S. Rao |
R. Kantha Rao |
|
------------------------------------------------------------------------------------------------------------------------------
UNSECURED LOANS
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
|
|
|
|
GoI Loan in perpetuity |
3722.125 |
3722.125 |
|
Term Loan from SBI together with Interest accrued and due thereon |
0.000 |
2554.600 |
|
|
|
|
|
Total |
3722.125 |
6276.725 |
|
NOTE: Represents loan received from GoI as “Loan in Perpetuity” upon conversion
of Loans taken from GoI and accrued interest upto FY 2009-10 amounting
Rs.3722.125 Millions |
||
------------------------------------------------------------------------------------------------------------------------------
NOTE:
The Registered Office of the company has been
shifted form, 209 and 209A, Vikram Towers, 16 Rajendra Place, New Delhi – 110008,
India, to the present address w.e.f. 16.09.2011.
------------------------------------------------------------------------------------------------------------------------------
CAPITAL STURCTURE
The Authorised
Equity Share Capital and Paid-up Equity Share Capital of the Company as on 31st
March 2012 stood at Rs.3040.000 Millions and Rs.3019.900 Millions respectively.
PERFORMANCE HIGHLIGHTS
Financial Parameters
The Company has
recorded a loss of Rs.859.800 Millions during the year 2011-12. The stated loss
is due to reduction in turnover, increase in pay and benefits and provision
towards Liquidated Damages. The Accumulated Losses have increased to
Rs.10160.800 Millions as on 31 Mar 2012 from Rs.9301.000 Millions reported last
year.
Value of
Production
The Company
achieved a value of production of Rs.5640.400 Millions during the Financial
Year 2011-12.
DIVISION-WISE PERFORMANCE
SHIPBUILDNG
The Shipbuilding
Division of the company achieved a Value of Production of Rs.2547.600 Millions
for 2011-12 as against Rs.2947.400 Millions in the previous year.
SHIP REPAIRS
During the year, Ship
Repair Division has undertaken repairs of 18 vessels (including 2 Foreign Flag)
of diverse types. The customers include Indian Navy, DCI, SCI, ONGC and VPT
etc. The repair dock was utilised to the optimum level. The turnover of Ship
Repair Division during the year is Rs.1935.100 Millions as against Rs.2809.800
Millions of last year.
FUTURE OUTLOOK
HSL is a major
shipyard on the East Coast of India. The yard has been brought under the
administrative control of Ministry of Defence in Feb 2010. Accordingly, the
yard needs to realign its business strategy towards warship and submarine
building for the Indian Navy and Indian Coast Guard. The Ministry of Defence
has nominated the yard for construction of Landing Platform Dock (LPDs) and
construction of strategic vessels are also planned in near future. Both, Indian
Navy and Indian Coast Guard have embarked upon massive acquisition plans and
accordingly the future of the yard looks bright.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INTRODUCTION
Subject is a fully
owned Central Public Sector Undertaking of Govt of India under the
administrative control of Ministry of Defence. The company was incorporated in
1952 and has its registered office and works situated at Visakhapatnam. The
administrative control of company changed from Ministry of Surface Transport
and Shipping to Ministry of Defence in Feb 2010 to support the Indian Navy and
Coast Guard in their respective expansion plans.
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Indian
shipbuilding industry consists of around 32 public and private sector yards. In
recent years, it has witnessed entry of new shipbuilders from the private
sector. With liberalisation policy of the Government, these shipbuilders have
become serious competitors to Defence Public Sector yards.
With opening of
Defence market to Private Sector, the Company is facing a stiff competition. To
meet this stiff competition an intensive modernisation has been planned. On
successful completion of same, the company will be able to meet the future
challenges and remain competitive in domestic as well global markets. The
modernisation is expected to be completed by end of 2013. The major customers
of the Company i.e. Indian Navy and Coast Guard have announced ambitious
expansion plans and the Company is putting its best efforts to secure good
orders from its major customers. This would help the yard to turn around and
become profit making.
CONTINGENT LIABILITIES
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In millions) |
||
|
a. Irrevocable
letters of credit outstanding |
683.469 |
463.971 |
1058.311 |
|
|
|
|
|
|
b. Counter
guarantees given to banks for guarantees issued on behalf of the company |
1871.030 |
1299.640 |
568.048 |
|
|
|
|
|
|
c. Estimated amount
of contracts remaining to be executed on capital account and not provided for |
-- |
-- |
29.151 |
|
|
|
|
|
|
d. Demands
raised against the company by various authorities, contested at various courts,
appellate authorities etc and not provided for: |
|
|
|
|
i) Property tax
on commercial complex for the years from 1984-85 to 1994-95. |
1.339 |
1.339 |
1.339 |
|
ii) Penal
interest on belated remittances of Provident Fund contributions during the
period from May 2002 to Feb., 2005, contested u/s 7(i) of EPF and MP Act,
1952 . HSL had approached Hon’ble High Court of Andhra Pradesh after
dismissal of appeal by PF Appellate Tribunal. The Hon’ble High Court has
issued stay orders on PF Appellate Tribunal order subject deposit of a sum of
Rs. 3.500 Millions by the company. Accordingly, HSL had deposited the said
amount. Presently, the case is pending in Hon’ble High Court of Andhra
Pradesh. |
10.978 |
10.978 |
14.478 |
|
iii) (a) ESI
dues in respect of ‘C’ series workmen for the period from 1-4-1998 to
30-9-2000 together with interest thereon (Rs.0.664 Million paid under protest
grouped under deposit recoverable) (b) ESI dues in
respect of temporary workmen for the period from April, 1998 to Oct., 1999, contractors
contribution for the period from Apr., 1985 to March, 1993. |
7.446 18.024 |
7.048 18.024 |
6.649 18.024 |
|
iv) Central Excise duty on P-BDE jackets manufactured and delivered to
ONGC. The amount has been paid to Excise authorities in 2010-11 |
-- |
-- |
11.451 |
|
v) Service tax demand in respect of INS Sindhukeerti |
265.050 |
208.130 |
208.130 |
|
vi) Demands of various suppliers of goods and services |
39.723 |
45.700 |
27.200 |
|
vii) Non Agricultural Land Assessment tax demands for the year 2000-01 |
0.454 |
0.454 |
0.454 |
|
viii) Demands in respect of service matters of employees having
financial impact. |
138.192 |
138.192 |
5.246 |
|
Total |
481.206 |
429.865 |
292.971 |
|
|
|
|
|
|
e. Claims against the company, which are under arbitration and not
provided for |
|
|
|
|
i) Counter –Claims of ONGC towards liquidated damages, penal interest
and interest on interest in respect of construction of well platforms (net of
provision) |
863.800 |
863.800 |
863.200 |
|
ii) Claims of Essar Oil Limited (EOL) towards OPF works (net of
provision made of Rs.437.033 Millions and counter claim of HSL on ONGC of
Rs.76.900 Millions). |
1073.343 |
919.640 |
860.900 |
|
iii) a) On rejection of it’s claims towards L.D.
and other claims by HSL, M/s Good Earth Maritime Limited, (G.M.L.) invoked
the arbitration clause for the vessel No. VC 11115, VC 11116 and VC 11117 and
the same is under arbitration. |
1236.600 |
1144.300 |
-- |
|
b) In respect of
Vessel No. VC 11118, VC 11136, VC 11137 and VC 11138 which were delivered and
VC 11139 to VC 11141 which are under construction, no provision towards of LD
is made, since the same is not applicable as per Contracts. |
-- |
-- |
-- |
|
No provision has
been made in respect of Liquidated Damages for vessels INS Sandhayak and INS
Kumbhir in the financial year 2010-11 which are undergoing refits since HSL
sought for extension of time for completion of refit works and the same is
under consideration by Indian Navy. Necessary provision made for LD in the
year 2011-12. |
-- |
24.278 |
-- |
|
Total |
3173.743 |
2952.018 |
1724.100 |
|
|
|
|
|
|
Contingent
Assets |
|
|
|
|
i) Recognition of income in earlier years towards escalation and extra
jobs for VC 1120, pending finalization of arbitration award. |
12.915 |
12.915 |
12.915 |
|
ii) Recognition of income (net of provision) in earlier years towards mark-up
on materials procured and works executed in respect of offshore platforms for
ONGC, pending finalization of arbitration. |
66.939 |
66.939 |
66.939 |
FIXED ASSETS:
· Land
· Buildings
· Railway sidings
· Plant and Machinery
· Slipways and FITOUT WARF
· Dry Dock
·
· Furniture
· Boats and launches
· Motor vehicles
· Roads and Compound walls
· Housing Estate
· Hospital and other Equipment
· Electrification of Buildings
· Berth for well platforms
· Building dock
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.55.05 |
|
|
1 |
Rs.82.75 |
|
Euro |
1 |
Rs.71.61 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
26 |
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.