MIRA INFORM REPORT

Report Date :

29.11.2013

IDENTIFICATION DETAILS

Name :	Visakhapatnam Port Trust
Administrative Office :	Port Area, Visakhapatnam 530035
Country :	India
Year of Establishment :	Not Available
Capital Investment / Paid-up Capital :	Not Divulged
Legal Form :	Government Owned Enterprise
Line of Business :	Providing Marine and Shipping Services
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a one of the leading major port of India having satisfactory track. Management has denied to disclose any details of the subject to us. As per indirect sources, we found that the subject is India’s second largest port by volume of cargo handled. Annual revenue of the trust was 660 Crores and Annual cargo tonnage of 67.41 Millions tonnes during 2009-2010. No other details could be made available. Payment terms are reported to be usually correct. The subject can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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

MANAGEMENT NON – COOPERATIVE

LOCATIONS

Administrative Office:	Port Area, Visakhapatnam 530035, India
Tel. No.:	91-891-2876001
Fax No.:	91-891-2565023
E-Mail :	info@vizagport.com
Website :	http://www.vizagport.com

TRUSTEES

Name :	Mr. R.P.S. Kahlon, I.A.S.
Designation :	Chairman
Name :	Mr.  G.V.L.Satya Kumar, I.R.T.S.
Designation :	Dy.Chairman.
Name :	Mr. Sunil Mishra
Designation :	Joint Secretary (Marine Administration)
Address :	Ministry of Shipping, Transport Bhawan, Room No.415, 1 Parliament Street, New Delhi - 110 001, Delhi, India
Name :	Mr. D.V.A Prasada Raju
Address :	Majjivalasa Village, Bheeminipatnam Mandal, Visakhapatnam,
Name :	Mr. Tippala Chinna Appa Rao
Address :	Door No.12-60-10(3), Aruna complex, B.C.Road, Gajuwaka, Visakhapatnam-530026
Name :	Mr. League M.Mohan
Address :	No. 12 AB, Taramani 100 FT Road, Velachery, Chennai-600 042
Name :	Mr. V.V. Rama Rao
Designation :	Hony. President, V.H. & P.W. Union (Representing Labour employed in the Port)
Address :	D. No. 26-26-27, Harbour Approach Road, Visakhapatnam- 530 001
Name :	Mr. D.K. Sarma
Designation :	General Secretary, V.P.E. Union, (Representing Labour employed in the Port)
Address :	D. No. 26-15-204, Dharmasakthi Bhavan, Main Road, Visakhaptnam-530 001
Name :	Chief Freight Transportation Manager
Address :	East Coast Railway, Ecor Sadan, Head Quarters Building,Chandra Sekarpur, Bhubaneswar-751 01
Name :	Commander, Coast Guard,
Address :	District Head Quarters No.6,c/o Fleet Mail Office,Eastern Naval Command, Visakhapatnam 530 014
Name :	Mr. Charan Kumar Kavuru
Address :	43-5-43/12, surya apartments, railway New colony, Visakhapatnam-530016
Name :	Mr. A.Mahesh Reddy
Address :	Sai Krupa, D.No.8-3-833,Plot No.s 37 & 38, Phase-I Kamalapuri Colony, Hyderabad- 500 073, Andhra Pradesh
Name :	Commissioner of Customs
Address :	Department of Customs, Port Area, Visakhapatnam -530 035
Name :	The Principal Secretary to Government
Designation :	Infrastructure & Investment Department, Andhra Pradesh Secretariat, Hyderabad - 500 022, Andhra Pradesh
Name :	Mr.  V V R Narasimham
Designation :	General Manager I/c
Address :	Hindustan Petroleum Corporation Ltd., Visakha Refinery, Post Box No. 15, Visakhapatnam - 530 011
Name :	Mr. K.V. Krishna Kumar
Designation :	Director,
Address :	K. Ramabrahmam & Sons (P) Ltd., Platinum House, 25-12-6, Godeyvari Street, Visakhapatnam - 530 001
Name :	Mr. C.V. Atchut Rao
Address :	Federation House, FAPCCI Marg, Red Hills, Hyderabad - 500 004, Andhra Pradesh
Name :	Surveyor-In-Charge
Designation :	Mercantile Marine Department, Visakhapatnam
Name :	Naval Officer-in-charge
Designation :	Representing Defence Services
Address:	Naval Base, Fleet Mail Office, Eastern Naval Command, Visakhapatnam-530014

SENIOR MANAGEMENT TEAM

Name :	R.P.S. Kahlon, I.A.S.
Designation :	Chairman
Name :	G.V.L. Satya Kumar, I.R.T.S.
Designation :	Dy. Chairman
Name :	Mr. Mujib Pasha Shaik, I.T.S.
Designation :	Chief Vigilance Officer
Name :	Mr. R Ramesh Karthikeyan
Designation :	F.A. & C.A.O.
Name :	Mr. S. Gopala Krishna
Designation :	Traffic Manager
Name :	Capt. S. Mathur
Designation :	Dy. Conservator
Name :	Mr. D. Naresh Kumar
Designation :	Secretary
Name :	Mr. K. Ramachandra Rao
Designation :	Chief Engineer
Name :	Mr. Sathish Honnakkatte
Designation :	Chief Mechanical Engineer
Name :	Mr. K.K. Chaturvedi
Designation :	Sr. Commandant, C.I.S.F.

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	No
12]	Profitability for last three years	No
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	No
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	No
24]	Banking facility details	No
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	No
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
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	No

HISTORY

Subject was an ancient Port city which had trade relations with the Middle East and Rome. Ships were anchored at open roads and were loaded with cargo transported from Visakhapatnam shore by means of small Masula boats. A reference to Vizagapatam merchant is available in the inscriptions of Sri Bheemeswara Swamy temple (1068 AD), East Godavari District, Andhra Pradesh. During 12th century AD, Vizagapatam was a fortified merchandize town managed by a guild. It has become a settlement of a branch of East India Company in 1682. Rs. 83 lakh worth of goods were moved through Vizagapatam / Bhimunipatnam in 1882-83.

Principal commodities traded at anchorage Port included Muslin cloth - manufactured at Uppada (East Godavari District), Manganese ore - exports to UK and USA, Oilseeds, jaggery, jute and indigo, hides and skins. Extensive trade relations existed with Burma. Vessels of British India Steam Navigation Company regularly visited the Port.

With the advent of British Rule, in 1858, the need for a port in this part of the country was emphasized in a report of a British Survey Party. Later in 1877 a report called Vizag the Port of Central Provinces further emphasized the need for construction of a Port at Visakhapatnam. It was only after the I World War (1914-18) that the proposal of Col.H.Cartwright Reid of British Admiralty for construction of a harbour at Visakhapatnam at the mouth of river Meghadrigedda was approved by the Government.

The unique feature of the harbour has been the Island Break-water, constructed by scuttling two old ships JANUS and WELLESDON which form the skeleton around which a rubble mound is formed. Two engineers Mr.W.C.Ash and Mr.D.B.Rattenberry were instrumental in making this engineering marvel a reality.

The existing land locked Inner Harbour was built by Bengal Nagpur Railway between 1927 and 1933 to provide sea outlet for Manganese ore of the Central Provinces(Madhya Pradesh).

The location of the port is very ideal in the sense that it affords protection from cyclones which strike the east coast regularly, by a high promontory into the sea, knon as Dolphin’s Nose Hill which is to the north of the entrance channel. The low tidal range of a maximum of 1.82 meters is also advantageous for the location of the port.

The harbour was constructed by dredging 281.8 million cu.ft. of land and soft material. It consisted of outer channel, inner channel, island breakwater, sand trap, turning basin, quay wall of 1600 ft (3 berths), two transit sheds, three storage sheds, open storage area, four electric quay cranes, three NG Locos, one weigh bridge, railway track, 15 sq. miles of acquired land and other facilities like, graving dock, dredgers, tugs, lighters, power house, work shop, roads, drains, water supply, buildings etc. The Port was constructed at a cost of Rs.378 lakhs.

The Port was opened to ocean traffic with the arrival of a passenger vessel S.S.JALADURGA of the Scindia Steam Navigation Co., on the 7th October, 1933. The Port was formally inaugurated by His Excellency Lord Willingdon, the then Viceroy and Governor General of India on 19th December 1933.

In the first year of operation, the Port handled a traffic of 1.3 lakh tonnes. The exports were 1.2 lakh tonnes and imports 0.1 lakh tonnes. The principal exports were manganese ore and groundnuts. The imports consisted of rice, flour, tiles and other consumer goods. The cargo was transported through bullock carts.

During the years of II World War (1939-42) the Port assumed military importance. After the war and country’s independence, the planned development of the Port started with the commencement of Five Year Plans of the country. Substantial investments were made in the successive Five Year Plans for developing the infrastructure in the Port.

The metamorphosis of the small Port with 3 berths and with initial annual traffic of 1.3 lakh tonnes into a leading Major Port with 24 berths and annual throughput of 65 million tonnes involed many landmarks.

The Port administration has passed through different departments and Ministries of the Government of India till its transfer to the Port Trust in February, 1964 under Major Port Trusts Act 1963 as shown below:

1933-35	RAILWAY BOARD
1935-37	COMMERCIAL DEPT.
1937-42	COMMUNICATIONS DEPT
1942-44	WAR TRANSPORT DEPT
1944-46	DEFENCE (WAR) DEPT
1946-56	BENGAL NAGPUR RLY
1956-64	MINISTRY OF TRANSPORT
FEB-1964	TRUST, UNDER MPT ACT
Chronology of major developments:

1951-61

Construction of three jetty berths(WJ-1,2&3)
Construction of one quay berth (EQ-4)
Construction of oil wharf consisting two oil berths(OR-1&2)

1961-71

Commissioning of two captive iron ore berths WOB-1(now WQ-4) and WOB-2(WQ-5)
Commissioning of ore handling plant
Commissioning of captive Fertiliser berth(FB)
Commissioning of EQ-5 and EQ-6
Constitution of Visakhapatnam Port Trust
Commencement of Night Navigation

1971-81

Commissioning of New Oil Mooring to accommodate large crude ships.
Commissioning of Outer harbour and ore berths (OB-1 and OB-2) to accommodate ships of size 150,000 DWT

1981-91

Construction of an off shore tanker terminal (OSTT) in the outer harbour to accommodate crude tankers upto 150,000 DWT

Construction of a General-cum-Bulk cargo berth to cater to ships upto 60,000 DWT

1991-2001

Conversion of the jetty berths WJ-1,2 and 3 into a regular quay berth with more apron width.
Commissioning of a multi-purpose berth EQ-7 in the inner harbour.
Commissioning of multipurpose berth in the outer harbour (now Container terminal)
Construction of an exclusive and specialized terminal for discharging LPG from gas carriers at the outer harbour.

2001-2010

Commencement of operation of the first BOT project - Container terminal at outer harbour concessioned to            Visakha  Container Terminal P Ltd.
Development of two new berths in the extended Northern arm of Inner Harbour (EQ.8 & EQ.9) on BOT basis by M/s.Vizag Sea Port Pvt. Ltd.
Commissioning of a multi purpose berth WQ-7 in the inner harbour
Navigation of first PANAMAX vessel into inner harbour
Commissioning of the LPG cavern facility
Merging of Visakhapatnam Dock Labour Board with Visakhapatnam Port Trust
Widening entrance channel of IH to 111 meters and permissible draft to 11 meters
Installation of 2 nos., harbour mobile cranes at West Quay berths of the inner harbour on hire basis.

CASE PENDING

WP 23651 / 2013

WPSR 128410 / 2013

CASE IS:PENDING

PETITIONER		RESPONDENT
M/S JUBILEE SHIPPING & LOGISTICS LTD., KOLKATA	VS	CHAIRMAN, VISAKHAPATNAM PORT TRUST, VIZAG & 3 OT
PET.ADV. : VIVEK CHANDRA SEKHAR S		RESP.ADV. : KRISHNAM RAJU
SUBJECT: CENTRAL GOVT. UNDERTAKINGS		DISTRICT:  VISAKHAPATNAM

FILING DATE:  08-08-2013	POSTING STAGE :  ADMISSION (CORPORATION)
REG. DATE    :   08-08-2013	LISTING DATE :  21-08-2013	STATUS   :  ADMIT

HON'BLE JUDGE(S):

RAMESH RANGANATHAN

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.39
UK Pound	1	Rs.101.80
Euro	1	Rs.84.75

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		45

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

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

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

RATING EXPLANATIONS

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

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

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