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MIRA INFORM REPORT
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Report No. : |
500342 |
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Report Date : |
27.03.2018 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE NAVAL AND ENGINEERING LIMITED (w.e.f. 06.09.2017) |
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Formerly Known
As : |
RELIANCE DEFENCE AND ENGINEERING LIMITED (w.e.f. 03.03.2016) PIPAVAV DEFENCE AND OFFSHORE ENGINEERING COMPANY LIMITED (w.e.f. 27.06.2011) PIPAVAV SHIPYARD LIMITED (w.e.f. 30.09.2009) PIPAVAV SHIP DISMANTLING AND ENGINEERING LIMITED |
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Registered
Office : |
Pipavav Port, Post Ucchaiya, Via-Rajula, District
Amreli-365560, Gujarat |
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Tel. No.: |
91-2794-305000 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
17.10.1997 |
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Com. Reg. No.: |
04-033193 |
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Capital
Investment / Paid-up Capital : |
INR 7362.063 Million |
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CIN No.: [Company Identification
No.] |
L35110GJ1997PLC033193 |
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IEC No.: [Import-Export Code No.] |
Not Divulged |
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PAN No.: [Permanent Account No.] |
Not Divulged |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Divulged |
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GSTN : [Goods & Service Tax
Registration No.] |
Not Divulged |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
The Company is mainly engaged in
the construction of vessels, repairs and refits of ships and rigs and heavy
engineering. (Registered
Activity) |
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No. of Employees
: |
472 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Maximum Credit Limit : |
USD 33000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a part of ADAG group led by Anil Ambani and was incorporated in the year 1997. It is engaged in construction of vessels, repairs and refits of ships and heavy engineering. As per financials of March 2017, the company has registered decent growth in its revenue but has reported losses. Rating takes into consideration the company’s continuous losses from its operations marked by low reserves level along with excess of borrowings and stressed liquidity position. Rating also takes into account the group’s ongoing debt delaying payments and selling of its flagship company i.e. Reliance Communications Limited due to debt obligation. However, ratings weakness is partially offset by established track record of business operations and sound capital base. Payments terms seems to be slow. In view of aforesaid, the company can be considered for business dealings with some caution. |
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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
EXTERNAL AGENCY RATING
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Rating Agency Name |
Not Available |
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Rating |
Not Available |
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Rating Explanation |
Not Available |
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Date |
Not Available |
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
31-03-2016.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 27.03.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DECLINED
Management non-cooperative (Tel No.: 91-2794-305100/ 91-22-33038000/
91-22-33031000)
LOCATIONS
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Registered Office/ EOU/
Site Address 1 : |
Pipavav Port, Post Ucchaiya, Via-Rajula, District Amreli-365560,
Gujarat, India |
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Tel. No.: |
91-2794-305000 |
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Fax No.: |
91-2794-305100 |
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E-Mail : |
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Website : |
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Corporate Office 1 : |
'H' Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai – 400710, Maharashtra, India |
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Corporate Office 2 : |
Devidas Lane, Off SVP Road Near Devidas Telephone Exchange Borivali (West), Mumbai-400103, Maharashtra, India |
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Site Address 2 : |
Village Rampara – II, Taluka Rajula and Village Lunsapur, Taluka Jafrabad, District Amreli – 365 560, Gujarat |
DIRECTORS
As on 31.03.2017
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Name : |
Mr. Kartik Subramaniam |
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Designation : |
Whole-Time Director |
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Address : |
77, Shankara Park Bangalore-560004, Karnataka, India |
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Date of Appointment : |
11.04.2017 |
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PAN No.: |
AFMPS2310G |
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DIN No.: |
01957227 |
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Name : |
Mr. Sateesh Seth |
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Designation : |
Director |
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Address : |
4th Floor, Summer Villa, 7th Road, Santa Cruz (East), Mumbai 400055, Maharashtra, India |
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Date of Appointment : |
12.09.2016 |
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DIN No.: |
00004631 |
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Name : |
Mr. Anil Dhirajlal Ambani |
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Designation : |
Director |
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Address : |
39, 'Sea Wind' Cuffe Parade, Colaba, Mumbai-400005, Maharashtra, India |
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Date of Appointment : |
18.01.2016 |
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DIN No.: |
00004878 |
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Name : |
Mr. Nikhil Prataprai Gandhi |
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Designation : |
Director |
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Address : |
21,Sagar Villa, 38, Bhulabhai Desai Road, Mumbai-400026, Maharashtra, India |
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Date of Appointment : |
17.10.1997 |
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DIN No.: |
00030560 |
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Name : |
Ms. Ryna Zaiwalla Karani |
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Designation : |
Director |
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Address : |
T/37, Godrej Baug, Off Napean Sea Road, Mumbai 400026, Maharashtra, India |
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Date of Appointment : |
18.01.2016 |
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DIN No.: |
00116930 |
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Name : |
Mr. Rahul Sarin |
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Designation : |
Director |
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Address : |
97, D-I Flats, Satya Marg, Chanakya Puri, New Delhii-110021, India |
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Date of Appointment : |
18.01.2016 |
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DIN No.: |
02275722 |
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Name : |
Ms. Comal Ramachandran Gayathri |
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Designation : |
Director |
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Address : |
Plot No 20a Road No 2, Jubilee Hills, Hyderabad-500033, Telangana, India |
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Date of Appointment : |
01.10.2014 |
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DIN No.: |
02872723 |
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Name : |
Mr. Syed Ata Hasnain |
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Designation : |
Director |
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Address : |
A 402, Park View Spa, Sector 47, Gurugram-122001, Haryana, India |
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Date of Appointment : |
18.01.2016 |
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DIN No.: |
07257757 |
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Name : |
Mr. Krishnaswamy Ravi Kumar |
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Designation : |
Additional Director |
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Address : |
277, Asian Games Village, New Delhi-110049, India |
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Date of Appointment : |
29.09.2017 |
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DIN No.: |
00119753 |
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Name : |
Mr. Raj Narain Bhardwaj |
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Designation : |
Additional Director |
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Address : |
402, Moksh Apartments Upper Govind Nagar, Malad (East), Mumbai 400097, Maharashtra, India |
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Date of Appointment : |
30.01.2018 |
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DIN No.: |
01571764 |
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Name : |
Mr. Rana Ranjit Rai |
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Designation : |
Additional Director |
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Address : |
E-102, Ground Floor, Amar Colony, Lajpat Nagar 4, Defence Colony, Delhi 110024, India |
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Date of Appointment : |
29.09.2017 |
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DIN No.: |
01625853 |
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Name : |
Mr. Rajesh Kumar Dhingra |
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Designation : |
Additional Director |
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Address : |
Gurgaon First Building, Tower-GH-3,Flat No-GC, Old Delhi Gurgaon Road, Near Sector-22, Gurgaon 122017, Haryana, India |
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Date of Appointment : |
20.02.2018 |
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DIN No.: |
03612092 |
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Name : |
Mr. Rajeev Kumar |
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Designation : |
Nominee Director |
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Address : |
E-33, IDBI Flats, Maker Kundan Garden, Juhu Tara Road, Near SNDT College, Santacruj, Mumbai-400049, Maharashtra, India |
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Date of Appointment : |
09.09.2017 |
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DIN No.: |
01879049 |
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Name : |
Ms. Padmaja Bhaskaran |
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Designation : |
Nominee Director |
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Address : |
Bungalow No. 6, Shalimar Enclave, E - 3, Arera Colony, Bhopal-462016, Madhya Pradesh, India |
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Date of Appointment : |
13.02.2015 |
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DIN No.: |
05264282 |
KEY EXECUTIVES
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Name : |
Mr. Kartik Subramaniam |
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Designation : |
Chief Executive Officer |
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Address : |
77, Shankara Park Bangalore-560004, Karnataka, India |
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Date of Appointment : |
01.04.2017 |
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PAN No.: |
AFMPS2310G |
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Name : |
Mr. Ajit Dinkar Dabholkar |
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Designation : |
Company Secretary |
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Address : |
D-801, Pearl Drop, Great Eastern Gardens, L.B.S. Marg, Kanjurmarg (West) Mumbai 400078, Maharashtra, India |
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Date of Appointment : |
21.03.2007 |
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PAN No.: |
AAZPD0776B |
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Name : |
Mr. Nikhil Nirgal Kumar Jain |
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Designation : |
Chief Financial Officer |
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Address : |
A - 204, Shah Heights, Plot 22, Sector 7 Kharghar Navi Mumbai, Kharghar Panvel, Raigarh, Kharghar-410210, Maharashtra, India |
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Date of Appointment : |
02.08.2017 |
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PAN No.: |
AFJPJ9833N |
MAJOR SHAREHOLDERS
As on December, 2017
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Category of shareholder |
No. of fully paid up equity shares held |
Shareholding as a % of total no. of
shares (calculated as per SCRR, 1957)As a % |
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(A) Promoter & Promoter
Group |
226453025 |
30.70 |
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(B) Public |
511138238 |
69.30 |
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Grand Total |
737591263 |
100.00 |
Statement showing shareholding pattern of the Promoter and
Promoter Group
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Category of shareholder |
No. of fully paid up equity shares held |
Shareholding as a % of total no. of shares
(calculated as per SCRR, 1957)As a % of |
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A1) Indian |
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Any
Other (specify) |
226453025 |
30.70 |
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Reliance Defence and Systems
Private Limited |
226453025 |
30.70 |
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Sub
Total A1 |
226453025 |
30.70 |
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A2) Foreign |
0.00 |
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A=A1+A2 |
226453025 |
30.70 |
Statement showing shareholding pattern of the Public shareholder
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Category & Name of the Shareholders |
No. of fully paid up equity shares held |
Shareholding % calculated as per SCRR,
1957 As a % |
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B1) Institutions |
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Mutual
Funds/ |
7119000 |
0.97 |
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Foreign
Portfolio Investors |
36512022 |
4.95 |
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MORGAN STANLEY MAURITIUS
COMPANY LIMITED |
23277726 |
3.16 |
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Financial
Institutions/ Banks |
7818084 |
1.06 |
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Insurance
Companies |
58465899 |
7.93 |
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LIFE INSURANCE CORPORATION OF
INDIA |
58465899 |
7.93 |
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Sub
Total B1 |
109915005 |
14.90 |
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B2)
Central Government/ State Government(s)/ President of India |
0 |
0.00 |
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B3)
Non-Institutions |
0 |
0.00 |
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Individual
share capital upto INR 0.200 million |
66020406 |
8.95 |
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Individual
share capital in excess of INR 0.200 million |
15944613 |
2.16 |
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Any
Other (specify) |
319258214 |
43.28 |
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Bodies Corporate |
282578005 |
38.31 |
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SKIL INFRASTRUCTURE LIMITED
(Person Acting in Concert) |
145380167 |
19.71 |
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IL AND FS MARITIME
INFRASTRUCUTURE COMPANY LIMITED |
53110674 |
7.20 |
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GREVEK INVESTMENT &
FINANCE PRIVATE LIMITED (Person Acting in Concert) |
22349494 |
3.03 |
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IL AND FS FINANCIAL SERVICES
LIMITED |
36926560 |
5.01 |
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NRI |
2780209 |
0.38 |
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Overseas corporate bodies |
33900000 |
4.60 |
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SEMBCORP MARINE LIMITED |
17500000 |
2.37 |
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VALIANT MAURITIUS PARTNERS FDI
LIMITED |
16400000 |
2.22 |
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Sub
Total B3 |
401223233 |
54.40 |
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B=B1+B2+B3 |
511138238 |
69.30 |
BUSINESS DETAILS
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Line of Business : |
The Company is mainly engaged in
the construction of vessels, repairs and refits of ships and rigs and heavy
engineering. (Registered
Activity) |
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Products / Services
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS – (NOT AVAILABLE)
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
472 (Approximately) |
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Bankers : |
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Facilities : |
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Auditors : |
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Name : |
Pathak H D and Associates Chartered Accountants |
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Address : |
814-815, Tulslani Chambers, 212, Nariman Point, Mumbai – 400021,
Maharashtra, India |
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Tel. No.: |
91-22-30228508 |
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Fax No.: |
91-22-30228509 |
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E-Mail : |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Subsidiary
Companies : |
· E Complex Private Limited · Reliance Marine and Offshore Limited · Reliance Lighter Than Air Systems Private Limited · Reliance Technologies and Systems Private Limited · Reliance Engineering and Defence Services Limited ·
PDOC Pte. Limited |
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Associates : |
· Reliance Defence Systems Private Limited · Reliance Infrastructure Limited SKIL Infrastructure Limited · Conceptia Software Technologies Private Limited |
CAPITAL STRUCTURE
As on 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
11000000000 |
Equity Shares |
INR 10/- each |
INR 110000.000 Million |
|
4000000000 |
Preference Shares |
INR 10/- each |
INR 40000.000 Million |
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Total |
|
INR 150000.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
736206269 |
Equity Shares |
INR 10/- each |
INR 7362.063 Million |
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Reconciliation of Equity
Shares outstanding at the beginning and at the end of the year:
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Particulars |
As at March 31, 2017 |
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|
No of Shares |
Amount (INR in Million) |
|
|
Equity Shares at the beginning of the year |
736206269 |
7362.063 |
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Add: Shares Issued during the year |
-- |
-- |
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Equity Shares at
the end of the year |
736206269 |
7362.063 |
Shareholders holding
more than 5% Shares in the Company:
|
Particulars |
As at March 31, 2017 |
|
|
No of Shares |
% Holding |
|
|
Reliance Defence Systems Private Limited |
226453025 |
30.76% |
|
SKIL Infrastructure Limited |
167536936 |
22.76% |
|
Life Insurance Corporation of India |
58465899 |
7.94% |
|
IL & FS Marine Infrastructure Company Limited |
53110674 |
7.21% |
Terms and Rights
attached to Equity Shares
The Company has only one class of Equity Share having par value of ` 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation of the Company, the equity shareholders will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportionate to the number of equity shares held by the shareholders.
Reserved Shares
Pursuant to proposed refinance Scheme to the lenders and exit from Debt Restructuring Scheme the existing loan up to INR 6550.000 Million will be refinanced through issuance of Equity Share and loan up to INR 23000.000 Million will be refinanced through issuance of 0.10% Compulsorily Redeemable Preference Share.
FINANCIAL DATA
[all figures are
INR Million]
ABRIDGED
BALANCE SHEET (STANDALONE)
|
SOURCES
OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
|
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I.
EQUITY AND LIABILITIES |
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|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
7362.063 |
7362.063 |
7362.063 |
|
(b) Reserves & Surplus |
4342.732 |
9584.021 |
14856.825 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
11704.795 |
16946.084 |
22218.888 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
57374.635 |
56688.049 |
51017.279 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
505.151 |
3248.384 |
|
(c) Other long term
liabilities |
0.550 |
562.421 |
562.421 |
|
(d) long-term provisions |
32.620 |
29.873 |
40.519 |
|
Total
Non-current Liabilities (3) |
57407.805 |
57785.494 |
54868.603 |
|
|
|
|
|
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(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
25998.691 |
16410.470 |
11293.675 |
|
(b) Trade payables |
2679.495 |
2704.544 |
3015.279 |
|
(c) Other current liabilities |
8583.728 |
6741.924 |
6677.680 |
|
(d) Short-term provisions |
6744.830 |
7013.515 |
6131.327 |
|
Total
Current Liabilities (4) |
44006.744 |
32870.453 |
27117.961 |
|
|
|
|
|
|
TOTAL |
113119.344 |
107602.031 |
104205.452 |
|
|
|
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II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
50617.977 |
52601.172 |
54554.002 |
|
(ii) Intangible Assets |
18.732 |
31.225 |
33.003 |
|
(iii) Capital work-in-progress |
40145.708 |
36686.013 |
33601.487 |
|
(iv) Intangible assets under
development |
950.583 |
811.547 |
590.945 |
|
(b) Non-current Investments |
208.700 |
208.700 |
208.700 |
|
(c) Deferred tax assets (net) |
1326.009 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
0.000 |
0.000 |
0.000 |
|
(e) Other Non-current assets |
3325.753 |
3451.192 |
3673.983 |
|
Total
Non-Current Assets |
96593.462 |
93789.849 |
92662.120 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
102.007 |
0.954 |
0.000 |
|
(b) Inventories |
7753.848 |
6104.803 |
3071.045 |
|
(c) Trade receivables |
34.502 |
109.833 |
454.619 |
|
(d) Cash and cash equivalents |
1172.723 |
1561.921 |
2077.327 |
|
(e) Short-term loans and
advances |
365.504 |
534.689 |
562.242 |
|
(f) Other current assets |
7097.298 |
5499.982 |
5378.099 |
|
Total
Current Assets |
16525.882 |
13812.182 |
11543.332 |
|
|
|
|
|
|
TOTAL |
113119.344 |
107602.031 |
104205.452 |
PROFIT
& LOSS ACCOUNT (STANDALONE)
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
5194.646 |
3065.824 |
8310.070 |
|
|
Other Income |
446.798 |
396.924 |
310.721 |
|
|
TOTAL
|
5641.444 |
3462.748 |
8620.791 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
2315.338 |
899.881 |
797.765 |
|
|
Purchases of Stock-in-Trade |
0.000 |
0.000 |
1324.555 |
|
|
Changes in Inventories
of Work in Progress & Scrap |
370.666 |
(340.137) |
(88.962) |
|
|
Employees benefits expense |
380.116 |
572.311 |
614.958 |
|
|
Other expenses |
1904.704 |
3505.931 |
4952.720 |
|
|
TOTAL |
4970.824 |
4637.986 |
7601.036 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
670.620 |
(1175.238) |
1019.755 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
5726.375 |
4717.940 |
4526.929 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(5055.755) |
(5893.178) |
(3507.174) |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
2006.517 |
2142.641 |
1974.467 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(7062.272) |
(8035.819) |
(5481.641) |
|
|
|
|
|
|
|
Less |
TAX |
(1828.015) |
(2749.347) |
(2070.285) |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(5234.257) |
(5286.472) |
(3411.356) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
1213.589 |
644.867 |
1003.395 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
(7.11) |
(7.18) |
(4.64) |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
4,158.612 |
3,476.082 |
1,007.984 |
|
Cash generated from operations |
(3468.069) |
(6058.753) |
4537.757 |
|
Net Cash (Used) / Generated from Operating Activities |
(3351.096) |
(6102.554) |
4481.932 |
QUARTERLY
RESULTS
|
Particulars |
30.06.2017 (Unaudited) |
30.09.2017 (Unaudited) |
31.12.2017 (Unaudited) |
|
|
1st Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1648.000 |
832.900 |
539.900 |
|
Total Expenditure |
1523.400 |
789.200 |
439.500 |
|
PBIDT (Excl OI) |
124.600 |
43.700 |
100.400 |
|
Other Income |
669.200 |
86.700 |
14.100 |
|
Operating Profit |
793.800 |
130.400 |
114.500 |
|
Interest |
1511.300 |
1677.300 |
1825.300 |
|
Exceptional Items |
(1631.900) |
NA |
7.900 |
|
PBDT |
(2349.400) |
(1546.900) |
(1702.900) |
|
Depreciation |
492.600 |
498.800 |
498.800 |
|
Profit Before Tax |
(2842.000) |
(2045.700) |
(2201.700) |
|
Tax |
(537.800) |
(539.000) |
(538.600) |
|
Provisions and
contingencies |
NA |
NA |
NA |
|
Profit After Tax |
(2304.200) |
(1506.700) |
(1663.100) |
|
Extraordinary Items |
NA |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
NA |
|
Other Adjustments |
NA |
NA |
NA |
|
Net Profit |
(2304.200) |
(1506.700) |
(1663.100) |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
2.42 |
13.08 |
19.97 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
150.56 |
27.91 |
18.28 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
422.41 |
1096.99 |
518.57 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
0.09 |
(0.19) |
0.33 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
0.01 |
(0.01) |
0.01 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.93 |
0.86 |
0.76 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
7.48 |
4.52 |
2.85 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
3.76 |
1.94 |
1.22 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
7.84 |
5.32 |
4.00 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
0.12 |
(0.25) |
0.23 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
(100.76) |
(172.43) |
(41.05) |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
(4.63) |
(4.91) |
(3.27) |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
(44.72) |
(31.20) |
(15.35) |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
0.38 |
0.42 |
0.43 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
0.20 |
0.23 |
0.31 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.10 |
0.16 |
0.21 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
11.89 |
10.40 |
8.60 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
0.38 |
0.42 |
0.43 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK PRICES
|
Face Value |
INR 10.00/- |
|
Market Value |
INR 28.60/- |
FINANCIAL ANALYSIS
[all figures are
in INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
7362.063 |
7362.063 |
7362.063 |
|
Reserves & Surplus |
14856.825 |
9584.021 |
4342.732 |
|
Net
worth |
22218.888 |
16946.084 |
11704.795 |
|
|
|
|
|
|
long-term borrowings |
51017.279 |
56688.049 |
57374.635 |
|
Short term borrowings |
11293.675 |
16410.470 |
25998.691 |
|
Current maturities of
long-term debts |
1007.984 |
3476.082 |
4158.612 |
|
Total
borrowings |
63318.938 |
76574.601 |
87531.938 |
|
Debt/Equity
ratio |
2.850 |
4.519 |
7.478 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
8310.070 |
3065.824 |
5194.646 |
|
|
|
(63.107) |
69.437 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
8310.070 |
3065.824 |
5194.646 |
|
Profit / (Loss) |
(3411.356) |
(5286.472) |
(5234.257) |
|
|
(41.05%) |
(172.43%) |
(100.76%) |
ABRIDGED
BALANCE SHEET (CONSOLIDATED)
|
SOURCES
OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
7362.063 |
7362.063 |
|
(b) Reserves & Surplus |
|
7107.116 |
12886.376 |
|
(c) Money received against
share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
14469.179 |
20248.439 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
59582.606 |
59838.955 |
|
(b) Deferred tax liabilities
(Net) |
|
0.000 |
505.151 |
|
(c) Other long term
liabilities |
|
0.550 |
562.421 |
|
(d) long-term provisions |
|
32.620 |
29.873 |
|
Total
Non-current Liabilities (3) |
|
59615.776 |
60936.400 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
29930.807 |
18781.126 |
|
(b) Trade payables |
|
2716.409 |
2730.417 |
|
(c) Other current liabilities |
|
10740.246 |
8504.453 |
|
(d) Short-term provisions |
|
6744.830 |
7013.515 |
|
Total
Current Liabilities (4) |
|
50132.292 |
37029.511 |
|
|
|
|
|
|
TOTAL |
|
124217.247 |
118214.350 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
56423.935 |
58479.445 |
|
(ii) Intangible Assets |
|
18.732 |
31.225 |
|
(iii) Capital work-in-progress |
|
41731.498 |
38026.758 |
|
(iv) Intangible assets under
development |
|
950.583 |
811.547 |
|
(v) Goodwill on
Consolidation |
|
101.896 |
101.896 |
|
(b) Non-current Investments |
|
3021.211 |
3020.183 |
|
(c) Deferred tax assets (net) |
|
1326.009 |
0.000 |
|
(d) Long-term Loan and Advances |
|
0.000 |
0.000 |
|
(e) Other Non-current assets |
|
4495.391 |
4387.834 |
|
Total
Non-Current Assets |
|
108069.255 |
104858.888 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
|
|
|
(b) Inventories |
|
7754.578 |
6143.630 |
|
(c) Trade receivables |
|
34.502 |
109.833 |
|
(d) Cash and cash equivalents |
|
1186.905 |
1595.207 |
|
(e) Short-term loans and
advances |
|
0.000 |
0.000 |
|
(f) Other current assets |
|
7172.007 |
5506.792 |
|
Total
Current Assets |
|
16147.992 |
13355.462 |
|
|
|
|
|
|
TOTAL |
|
124217.247 |
118214.350 |
PROFIT
& LOSS ACCOUNT (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
5640.515 |
3124.872 |
|
|
Other Income |
|
390.667 |
336.692 |
|
|
TOTAL
|
|
6031.182 |
3461.564 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
|
2315.338 |
918.459 |
|
|
Purchases of Stock-in-Trade |
|
447.330 |
0.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
409.492 |
(355.302) |
|
|
Employees benefits expense |
|
381.203 |
580.755 |
|
|
Other expenses |
|
1745.195 |
3447.846 |
|
|
TOTAL |
|
5298.558 |
4591.758 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
|
732.624 |
(1130.194) |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
6255.013 |
5370.636 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
(5522.389) |
(6500.830) |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
|
2078.899 |
2213.561 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
|
(7601.288) |
(8714.391) |
|
|
|
|
|
|
|
Less |
TAX |
|
(1828.015) |
(2786.884) |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
|
(5773.273) |
(5927.507) |
|
|
|
|
|
|
|
Add |
Consolidated share in the profits of associate |
|
1.028 |
3.307 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) FOR THE YEAR |
|
(5772.245) |
(5924.200) |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
|
(7.84) |
(8.05) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of establishment |
Yes |
|
2] |
Constitution of the entity Incorporation
details |
Yes |
|
3] |
Locality of the entity |
Yes |
|
4] |
Premises details |
No |
|
5] |
Buyer visit details |
-- |
|
6] |
Contact numbers |
Yes |
|
7] |
Name of the person contacted |
No |
|
8] |
Designation of contact person |
No |
|
9] |
Promoter’s background |
Yes |
|
10] |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
11] |
Pan Card No. of Proprietor / Partners |
No |
|
12] |
Voter Id Card No. of Proprietor / Partners |
No |
|
13] |
Type of business |
Yes |
|
14] |
Line of Business |
Yes |
|
15] |
Export/import details (if applicable) |
No |
|
16] |
No. of employees |
Yes |
|
17] |
Details of sister concerns |
Yes |
|
18] |
Major suppliers |
No |
|
19] |
Major customers |
No |
|
20] |
Banking Details |
No |
|
21] |
Banking facility details |
Yes |
|
22] |
Conduct of the banking account |
-- |
|
23] |
Financials, if provided |
Yes |
|
24] |
Capital in the business |
Yes |
|
25] |
Last accounts filed at ROC, if applicable |
Yes |
|
26] |
Turnover of firm for last three years |
Yes |
|
27] |
Reasons for variation <> 20% |
-- |
|
28] |
Estimation for coming financial year |
No |
|
29] |
Profitability for last three years |
Yes |
|
30] |
Major shareholders, if available |
Yes |
|
31] |
External Agency Rating, if available |
Yes |
|
32] |
Litigations that the firm/promoter
involved in |
-- |
|
33] |
Market information |
-- |
|
34] |
Payments terms |
No |
|
35] |
Negative Reporting by Auditors in the
Annual Report |
No |
GENERAL INFORMATION
The Company is a company limited by shares, incorporated and domiciled in India. The registered office of the company is located at Pipavav Port, Post Ucchaya, Via- Rajula, District Amreli (Gujarat) and listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The name of the Company got changed from Pipavav Defence and
Offshore Engineering Company Limited during the financial year 2015-16 and
fresh certificate of incorporation was issued by the Ministry of Corporate
Affairs (MCA), Government of India on March 3, 2016. The Company is mainly
engaged in the construction of vessels, repairs and refits of ships and rigs
and heavy engineering. RDEL has a large shipbuilding/repair infrastructure in
India including the largest Dry Dock in the world. The Company is the first
private sector company in India to obtain the licence and contract to build
Naval Offshore Patrol Vessels(NOPVs) for Indian Navy. The Shipyard has only
moduler shipbuilding facility in India with capacity to build fully fabricated
and outfitted blocks. The fabrication facility spread over 2.1 million sq ft
has annual capacity of 144,000 tons/year. The shipyard has pre-erection berth
of 980 meter length and 40 meters width and two Goliath cranes with combined
lifting capacity of 1200 tonnes, besides outfitting berth length of 780 meters.
FINANCIAL PERFORMANCE
AND BUSINESS OPERATIONS
During the financial year, the Company earned an income of INR 5641.444 Million against INR 3462.748 Million in the previous year. The Company incurred a loss after tax of INR 5234.257 Million for the year as compared to INR 5286.472 Million in the previous year.
During the year, the Authorised Capital of the Company of INR 150000.000 Million has been re-classified into 11000.000 Million Equity Shares of INR 10/- each and 400 Million Preference Shares of INR 10/- fully paid-up.
During the year, their Company signed the SubConcession Agreement with Gujarat Maritime Board for a period of 30 years expiring in June 2046. The Ministry of Defence has carried out a detailed financial and technical capabilities study of their Company (also known as Shipyard Assessment).
During the year, their Company signed contracts of approximate value of INR 9160.000 Million for construction of 14 Fast Patrol Vessels for the Indian Coast Guard. Their Company has also submitted bids for construction of eight Anti Submarine Warfare Shallow Water Crafts (‘ASWSWC’) for the Indian Navy and for four Landing Platform Docks (‘LPDs’). Combined value of these two projects is approximately INR 280000.000 to 300000.000 Million.
In a significant development their Company was qualified by U.S. Navy as an approved contractor to perform complex repair and alternation services for the U.S. Navy’s seventh fleet vessels operating in the region and signed the Master Ship Repair Agreement (‘MSRA’) with U.S. Navy. Their Company is the first shipyard in India to have received MSRA certification to undertake servicing and repairing works for the vessels of the U.S. Navy (Seventh fleet).
Their Company’s shipyard at Pipavav, Gujarat, has integrated state of-the-art production facilities. During the year under review, there has been a substantial increase in pace towards delivery of Naval Offshore Patrol Vessels (‘NOPVs’) for the Indian Navy. The vessels are being constructed in two batches of two and three vessels each to maximize utilization of their large dry dock and enable quicker deliveries. The two NOPVs in the first batch will be launched in the first half of financial year 2017-18.
MANAGEMENT’S
DISCUSSION AND ANALYSIS REPORT
Macroeconomic
Overview – Indian Economic Environment
As per the Central Statistics Organization (CSO) second advance estimates, the Indian economy grew by 7.1 per cent in 2016- 17. After two consecutive years of poor monsoon, 2016-17 was the first year when the country witnessed normal monsoon which provided much needed support to the rural economy. India’s macro fundamentals continued to improve in 2016-17 led by strong pace of reforms such as passage of GST Bill, corporate insolvency resolution via Bankruptcy Code, financial inclusion via Aadhaar card and various measures to curb black money. Inflation continued with its downtrend, with CPI averaging 4.5 per cent in 2016-17 versus 4.9 per cent in 2015-16. Central government fiscal deficit too improved from 3.9 per cent of Gross Domestic Product (GDP) in 2015-16 to 3.5 per cent of GDP in 2016-17. The revenue deficit also declined from 2.5 per cent in 2015-16 to 2 per cent in 2016-17. Benign inflationary pressures meant that the RBI was able to deliver another 25 basis points of repo rate cut in 2016-17 after a cumulative 125 basis points rate cut in 2015-16. Further, in order to facilitate transmission of policy rate cuts, the RBI decided to progressively migrate the banking system liquidity target from a deficit of 1 per cent of NDTL to a position closer to neutrality. Government’s policy reforms continued to improve the business environment in the economy with India jumping 16 ranks to settle at the 39th spot (out of 138 countries) on the global competitiveness index prepared by the World Economic Forum in 2016. This was the second year in a row that India jumped 16 spots. In the year 2015-16, India was ranked at the 55th place.
GDP Growth
As per second advance estimates, India’s GDP growth slowed down slightly in 2016-17 to 7.1 per cent from 7.9 per cent in 2015-16. This slowdown was primarily due to the impact of demonetisation which led to temporary disruption in cash transactions. On the back of a normal monsoon, the agriculture sector registered a strong growth of 4.4 per cent in 2016- 17 versus 0.8 per cent in 2015-16. Mining grew by 1.3 per cent (down from 12 per cent in the previous year) while manufacturing grew by 7.7 per cent (down from 10.5 per cent in the previous year) and electricity grew by 6.6 per cent (up from 5.1 per cent in the previous year). The construction sector showed some improvement, growing by 3.1 per cent in 2016- 17 versus 2.7 per cent in 2015-16. However, the biggest drag came from the service sector where growth rate fell to 7.9 per cent in 2016-17 from 9.8 per cent in the previous year. The drag was primarily due to the note ban as large sections of the service sector are unorganized and highly dependent on cash transactions. Going forward, a normal monsoon, normalization of short-term disruption caused from demonetisation as well as a pick-up in exports should be supportive of growth in 2017-18.
Industrial Production
During 2016-17, the Index of Industrial Production (IIP) registered a healthy growth rate of 5 per cent compared to 3.4 per cent in same period last year. Manufacturing index grew by 4.9 per cent, Mining rose by 5.3 per cent and Electricity rose by 5.8 per cent. The government has been focused on increasing public capital spending both through the budget and by off budget means (SOE-led capex). However, the trend in private capex has been subdued and has been a key drag on the overall growth trajectory. On the positive side, FDI has remained quite strong with India receiving US$35.8bn of net FDI inflows in 2016-17.
INDUSTRY AND BUSINESS
PROSPECTS
Indian defence forces are the third largest armed forces in the world. India’s current requirements on defence are catered largely by imports. The opening of the strategic defence sector for private sector participation will help foreign original equipment manufacturers to enter into strategic partnerships with Indian companies and leverage the domestic markets and also aim at global business. Besides helping build domestic capabilities, this will bolster exports in the long term.
The union budget for 2017-18 announced that INR 2741150.000 Million is allocated for defence expenditure, excluding pension. The defence budget for the year 2016-17 was INR 2585890.000 million.
As per the figures released by the Ministry of Defence, there is a growth of six percent over the budget estimates (INR 2585890.000 million) and 5.6 percent over Revised Estimates (INR 2594800.000 million) respectively for the financial year 2016-17.
The Union Budget envisaged a total outlay of INR 21467350.000 Million out of this INR 2741150.000 Million has been earmarked for defence. This accounts for around 12 percent of the total Central Government expenditure for the year 2017-18.
Defence Ship Building
& Refits:
Opening up of defence sector for both foreign and private sector participation would help foreign original equipment manufacturers to enter into strategic partnerships with Indian companies and leverage the domestic markets and also aim at global business with manufacturing hub in India. Defence Procurement Procedure - 2016 (‘DPP-2016’) has been tailored to provide level playing field to private sector domestic defence equipment manufacturers and DPSUs. Besides helping build domestic capabilities, this will bolster exports in the long term. We believe that the Company is uniquely placed to tap these growth opportunities available in the Indian defence sector.
New Defence Products
They aim to manufacture a varied category of defence equipment and vessels in addition to their current order book. Some of their current focus areas are building (a) frontline frigates and destroyers; (b) aircraft carriers; (c) conventional and strategic submarines; and Mid-life Refit and Overhaul (‘MRO’) of existing fleet of ships and submarines.
Commercial
Shipbuilding and Repairs
The Construction, Repairing, Conversion of fuel efficient superior commercial vessels, Hydro-carbon E&P Assets etc. is a vast and complex industry. India has a coastline of 7,517 km with 12 major ports and 205 notified non-major ports facilitating sea borne trade in and out of India. As on December 31, 2016, Indian shipbuilding industry has 31 shipyards, out of which 8 shipyards are in the public sector and the rest are in the private sector. Further, there are 34 dry-docks for repairing ships in India both in public and private sector. These dry docks include the 12 dry docks operated by 8 major ports.
Shipbuilding industry is an order driven industry where each vessel is custom built on receipt of the ship-building order. Thus, building an order book is essential for growth and sustenance of the shipbuilding industry. Order book growth for commercial ships is largely driven by the growth in world trade and commerce, which spurs demand for new ships. The evolving environment-friendly international regulations also trigger demands for replacement of old ships. Ship-repair service, a supplementary service provided by most of the shipyards, is also a labour-intensive activity that utilizes the existing ship-building infrastructure to provide additional returns on the capital invested.
The demand for ships, semi-submersibles and port auxiliary vessels, new ship building activities as well as ship-repair activities are projected to grow in view of rising cargo traffic both inbound and outbound from India in the coming years. The “Manufacturing Plan – Strategies for Accelerating Growth of Manufacturing in India in the 12th Five Year Plan and Beyond” released by the erstwhile Planning Commission lists “Ship building and Ship Repair” as one of the key sectors of strategic importance
The Indian shipbuilding industry, which had only about 0.1% share of the world shipbuilding in the year 2002, expanded over ten times to 1.3% in the year 2007-2008. Indian shipbuilding turnover, excluding defence shipyards, has grown about 14 times from about INR 440 million in the year 2001-2002 to an estimated INR 6,200 million in the year 2010-2011.
Indian owned ships and vessels carried only 7.45% of India’s overseas trade during the year 2014-15 with most of the sea-borne trade from and to India being facilitated by foreign vessels. With India’s emergence as a major economic power, it would lead to greater integration in terms of trade with the rest of the world which would require a large amount of shipping capacity. To sustain the momentum of foreign trade and improve competitiveness, India would also need adequate and efficient infrastructure in terms of ports, ships and maritime services. The Company is concentrating its business development efforts on niche segments like building of Floating Storage and Regasification Unit (‘FSRU’), Floating Production, Storage and Offloading Unit (‘FPSO’), Floating Storage Unit etc. Reliance Defence is among few private sector companies to have developed capabilities and capacities to tap this huge opportunity. Ship repair activity in India is largely concentrated around 18 small sized commercial dry docks, equally divided between the public and private sectors. This is supplemented by wet berths in major ports and captive repair facilities of the Indian Navy.
The ship repair business worldwide is estimated to be around 12 billion USD, while Indian companies share in the total revenue from global ship repair business stands at less than 1%. It is estimated that the total potential of the ship repair market available in the Indian region is of the order of INR 24400.000 million to INR 27900.000 million per annum. During the year 2014-15, Indian companies repaired a total of 482 ships grossing a total revenue of INR 50430.000 million. The total number of ships repaired in the year 2014-2015 increased by approx. 140% from the years 2013-2014 and 2014-15 when a total of 200 and 206 ships were repaired, respectively. The traditional commercial shipbuilding sector continues to reel under the tonnage glut, shrinking global trade and subsequent low ordering levels. GoI is committed to increasing India’s share of the global shipbuilding market to 5 percent by 2020 which is currently around 1%. India’s advantages over other competitor nations are well known and include its strategic location in close proximity to the international busy trading routes and a ready availability of skilled manpower.
OPPORTUNITIES AND
OUTLOOK
Defence Shipbuilding and Refit The Indian defence space is an important focus area for the Government of India which is also highlighted by the increase in budgetary allocations for the sector over the years. The budgetary allocation for defence is increased at a CAGR of 9%, revenue expenditure remained largely constant and capital expenditure increasing at a CAGR of around 11%. India is also one of the largest defence spenders in the world. The Indian armed forces are the third largest in the world with a substantial defence budget. In the financial year ending March 31, 2017, around 30% of the defence budget was spent on capital acquisitions. The offset policy (which stipulates the mandatory offset requirement of a minimum 30% for procurement of defence equipment in excess of INR 3 billion) introduced in the capital purchase agreements with foreign defence players would ensure that an eco-system of suppliers is built domestically.
Their strategy is to focus on research and development in defence technology with the objective of becoming self-reliant and developing indigenous defence equipment. The Government of India, through its ‘Make in India’ campaign, has been encouraging domestic development of defence equipment. The DPP-2016, under the ‘Buy (Indian-IDDM)’ category refers to procurement of the products that have been indigenously designed, developed and manufactured with a minimum of 40% of indigenous content (‘IC’) on the cost basis of the total contract value or products having 60% indigenous content on cost basis of the total contract value, if not designed and developed indigenously. Apart from overall IC as mentioned above, the same percentage of IC will also be required in (a) Basic cost of equipment (b) cost of manufacturers’ recommended list of spares; and (c) cost of special maintenance tools and special test equipment taken together at all stages. Further to encourage research and development in the private sector defence manufacturers, under the ‘Make-India’ category, the Ministry of Defence would bear 90 % of design and development cost of major defence systems and the rest 10% will be borne by the development agency, i.e. the selected vendor.
Their strategy is to commit more resources in research and
development activities in defence technology with the ultimate goal of becoming
technologically self-reliant and ensure indigenous production of defence
equipment. Further, their Company is actively pursuing various other
opportunities with technology partners to advance their technological
capabilities of building strategic defence platforms. Their Company, due to
their large infrastructure, developed and demonstrated capabilities and
capacities is uniquely placed to tap these growth opportunities available in
the Indian defence sector.
UNSECURED LOAN
|
PARTICULAR |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Long-term
Borrowings |
|
|
|
Foreign Currency
Term Loans from: |
|
|
|
Body Corporate |
0.000 |
839.122 |
|
Short-term
borrowings |
|
|
|
Loans from: |
|
|
|
Banks |
3156.029 |
3267.822 |
|
Related Parties |
9426.379 |
3224.000 |
|
Body Corporates |
2587.640 |
0.000 |
|
Total |
15170.048 |
7330.944 |
INDEX
OF CHARGES
|
S No |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Amount |
Address |
|
1 |
G79460812 |
100160549 |
RELIANCE INFRASTRUCTURE LIMITED |
07/03/2018 |
- |
25000000000.0 |
H Block, 1st FloorDhirubhai Ambani Knowledge CityNavi MumbaiMa400710IN |
|
2 |
C81910440 |
10602446 |
IL & FS TRUST COMPANY LIMITED |
20/04/2015 |
14/07/2015 |
11330000000.0 |
IL & FS Financial Centre, Plot C - 22, G Block,Bandra Kurla Complex, Bandra EastMumbaiMH400051IN |
|
3 |
C81928160 |
10601211 |
IL & FS TRUST COMPANY LIMITED |
20/04/2015 |
14/07/2015 |
8020000000.0 |
IL & FS Financial Centre, Plot C - 22, G Block,Bandra Kurla Complex, Bandra EastMumbaiMH400051IN |
|
4 |
C81921975 |
10601169 |
IL & FS TRUST COMPANY LIMITED |
20/04/2015 |
14/07/2015 |
16890000000.0 |
IL & FS Financial Centre, Plot C - 22, G Block,Bandra Kurla Complex, Bandra EastMumbaiMH400051IN |
|
5 |
C65759326 |
10594135 |
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED |
23/03/2015 |
- |
1700000000.0 |
RAMON HOUSE 169BACKBAY RECLAMATIONH T PAREKH MARGMUMBAIMH400020IN |
|
6 |
C80688260 |
100053598 |
YES BANK LIMITED |
12/03/2015 |
- |
4850000000.0 |
9th Floor, Nehru Centre, Discovery of IndiaDr. Annie Besant Road, WorliMUMBAIMH400018IN |
|
7 |
C35789569 |
10534920 |
Union Bank of India |
24/09/2014 |
- |
5350000000.0 |
Industrial Finance Branch, Union Bank Bhavan, 239Vidhan Bhavan Marg, Nariman PointMumbaiMH400021IN |
|
8 |
C33426834 |
10530975 |
IDBI Bank Limited |
11/07/2014 |
- |
800000000.0 |
221 A, 2nd floor, A wing, Mittal CourtNARIMAN POINTMUMBAIMH400021IN |
|
9 |
C24774556 |
10523266 |
Central Bank of India |
27/06/2014 |
- |
350000000.0 |
Corporate Finance Branch1st Floor, MMO Building, FortMumbaiMH400023IN |
|
10 |
C81884785 |
10506065 |
IL & FS TRUST COMPANY LIMITED |
23/06/2014 |
14/07/2015 |
1500000000.0 |
IL & FS Financial Centre, Plot C - 22, G Block,Bandra Kurla Complex, Bandra EastMumbaiMH400051IN |
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Guarantees given by
Company’s Bankers |
|
|
|
Refund Bank Guarantees given to customers (net of
liabilities accounted for) |
15549.505 |
12319.848 |
|
Other Bank Guarantees (Bank Guarantees are provided under contractual/ legal obligations.) |
4633.079 |
4096.175 |
|
Corporate Guarantee (Given to Banks, Financial Institutions and Body Corporates for credit facilities taken by subsidiary companies to the extent such facilities outstanding) |
3223.042 |
4513.943 |
|
Demands not acknowledged as Debts (net) |
|
|
|
Income Tax Majorly the tax demand due to disallowances by the Income tax department which include, expenses incurred prior to commencement of business and expenses disallowed U/s. 14 A of the Income Tax Act, 1961. |
|
|
|
Service Tax, Excise Duty and Sales Tax Includes the demand notices received for wrong availment of Cenvat credit mainly on input goods and services in connection to construction of dry dock. The Company has obtained the favourable order of CESTAT in some cases but the department has gone in to the appeal. Further certain amount has been disallowed by the department against the Company’s refund claim for service tax paid and Company has challenged the same into appeal for claiming the refund. Such cases also have been considered as part of contingent liability. The company has also received demand for VAT payable on Input services at its Mumbai unit, which has been considered in the contingent liability. The amount considered for contingent liability is aggregate of the amount payable as per the demand notices received less the amount already provided for in the books. |
54.857 |
36.290 |
|
Third Party Claims The suppliers in certain cases have claimed the amount from the Company, which is under dispute. These includes the cases pending at various forums including international/domestic arbitration. Each of the cases have been reviewed and whereever required suitable provisions are made in the books of account and difference between amount demanded and amount provided in the books have been disclosed as contingent liability. Further, the Company has considered contingent liability in respect of liquidated damages payable to the customers in respect of delays in execution of the contract. Further, post CDR, certain lenders have claimed interest/processing fees and other charges, which are more than what the Company is required to pay as per MRA signed between the Company and the Lenders. The Company has submitted the representation to the respective Lenders for the waiver and pending such settlement the amount has been disclosed as contingent liability. |
1907.934 |
1530.702 |
|
Letters of Credit opened in favour of suppliers (Cash Outflow is expected on receipt of materials from suppliers) |
692.382 |
46.860 |
|
Total |
2655.173 |
1613.852 |
STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND
NINE MONTHS ENDED 31 DECEMBER 2017
(INR In Million)
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Income |
|
|
|
|
Revenue from
operations |
539.900 |
832.900 |
3020.800 |
|
Other income |
14.100 |
86.700 |
770.000 |
|
Total Income
from Operations (net) |
554.000 |
919.600 |
3790.800 |
|
|
|
|
|
|
Expenses |
|
|
|
|
Cost of
Materials Consumed |
311.600 |
2075.900 |
3274.500 |
|
Changes in inventories of finished goods, work-in-progress and traded goods |
(4.200) |
(0.500) |
(4.900) |
|
Excise Duty |
0.000 |
0.000 |
0.800 |
|
Employee benefits expense |
74.200 |
88.000 |
251.000 |
|
Labour/
Fabrication and subcontractor Charges |
216.30 |
286.400 |
901.500 |
|
Cost
Estimated for revenue recognised |
(318.200) |
(1975.800) |
(2458.300) |
|
Other
expenses |
159.800 |
315.200 |
787.500 |
|
Total
Expenses |
439.500 |
789.200 |
2752.100 |
|
Profit before from operations before depreciation/
Amortisation cost and Finance costs |
114.500 |
130.400 |
1038.700 |
|
Finance costs
|
1825.300 |
1677.300 |
5013.900 |
|
Depreciation/
Amortisation cost |
498.800 |
498.800 |
1490.200 |
|
Profit before tax exceptional items |
(2209.600) |
(2045.700) |
(5465.400) |
|
Exceptional
Items |
7.900 |
0.000 |
(1624.000) |
|
Profit before tax |
(2201.700) |
(2045.700) |
(7089.400) |
|
Tax
expense |
538.600 |
539.000 |
1615.400 |
|
Net
Profit/(Loss) for the period |
(1663.100) |
(1506.700) |
(5474.000) |
|
Other
Comprehensive Income |
|
|
|
|
Item's that will
not to be reclassified to profit or loss |
|
|
|
|
Actuarial
gains/(loss) on definied benefit plans
|
0.000 |
0.900 |
-1.600 |
|
Income tax
effect |
0.000 |
0.300 |
0.500 |
|
Total Other
Comprehensive Income for the period |
0.000 |
0.600 |
(1.100) |
|
Total
Comprehensive Income for the period |
(1663.100) |
(1506.100) |
(5475.100) |
|
|
|
|
|
|
Paid – up Equity Share Capital (Face Value INR 10) |
7375.900 |
7375.900 |
7375.900 |
|
Earning Per Share for the Period of INR 10/- each |
|||
|
Basic |
(2.25) |
(2.04) |
(7.42) |
|
Diluted |
(2.25) |
(2.04) |
(7.42) |
Notes:
01. The Company is engaged only in the business of Ship-building and repairs. As such, there are no separate reportable segments.
02. In respect of vessels other than the commercial vessels, including offshore
support vessels, the Company accounts contract revenue and expenses based on
the proportionate completion of contract method as certified by the technical
experts. In order to evenly allocate the profit on the said contract to whole
of the contract period, provision for proportionate cost to be incurred has
been made and charged to statement of profit and loss as "Cost Estimated
for Revenue Recognised", which will be adjusted to the statement of profit
and loss as and when actual cost is incurred.
03. As per the letter dated April 28, 2017 the CDR- Cell had approved Company's
exit from Corporate Debt Restructuring Scheme (CDR). Further, IDBI Bank has
also confirmed the Company's exit from CDR vide their letter dated May 06,
2017. Consequently the one time cost towards right of recompense payable to the
lenders on exit from CDR has been accounted during the period ended December
31, 2017. Accordingly Rs 1624.000 Million was charged to Statement of Profit or
Loss and shown as "Exceptional Items" for the period and Rs 798.900
Million has been capitalised as borrowing cost. The Company's proposal of refinancing
of its debts is under consideration by the lenders.
04. As a part of refinancing, during the period ended December 31, 2017, the
Company has allotted 1,384,994 Equity Shares having face value of INR 10 each
per share at a premium of INR 49.35 per share and 42,245,764 Compulsorily
Redeemable Preference Shares having face value of Rs 10 each per share to one
of its lenders against its outstanding debt.
05. The Company had issued a corporate guarantee for loan availed by Reliance
Marine and Offshore Limited (“RMOL”), a wholly owned subsidiary from IFCI
Limited (“IFCI”). Due to nonpayment by RMOL, IFCI recalled the loan and invoked
the corporate guarantee issued by the Company. During the quarter, IFCI has
filed applications before National Company Law Tribunal, Ahmedabad against RMOL
and the Company under section 7 of the Insolvency and Bankruptcy Code, 2016 for
its claim of INR 1596.000 Million. The applications of IFCI are contested by
the Company and RMOL. The next date of hearing is February 14, 2018. The
Management is of the view that the value of securities provided to IFCI is
sufficient to recover the outstanding dues of IFCI. Accordingly, no provision
against the above corporate guarantee is considered necessary at this
stage.
06. After review by the Audit Committee, the Board of Directors of the Company
has approved the above results at their meeting held on January 30, 2018. The
Statutory Auditors of the Company have carried out a limited review of the
results.
07. The figures for the previous quarters/periods and for the year ended March
31, 2017 have been restated, regrouped and reclassified to make them comparable
with those of current period.
FIXED ASSETS
· Buildings
· Plant and Equipments
· Furniture and Fixtures
· Office Equipments
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
INR |
|
US Dollar |
1 |
INR 64.91 |
|
UK Pound |
1 |
INR 91.86 |
|
Euro |
1 |
INR 80.26 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.
·