Bharati Shipyard loan facilities rated CARE A+, PR1+

care has assigned ‘a+’ rating to the long﹣term bank facilities of bharati shipyard ltd, which implies the instruments offer adequate safety for timely servicing of debt obligations ａnd carry low credit risk. bharati shipyard’s short﹣term bank facilities have been rated ‘pr1+’. instruments with this rating would have strong capacity for timely payment of short﹣term debt obligations ａnd carry lowest credit risk. these ratings are assigned to the short﹣term ａnd long﹣term bank facilities aggregating rs.3,116 crore.
the rating derive strength ｆrom professionally qualified ａnd experience
promoters as well as management, favourable industry scenario for oil &﹔ gas exploration sector, in﹣house vessel design capabilities of bharati shipyard, comfortable gearing level, stable profitability margins, strong ａnd growing order book position demonstrating visibility in revenue ａnd higher proportion of repeat orders in the order book.
however, the rating is constrained by project risk associated with the expansion projects, adverse outcome on the government subsidy issue, concentration of order book to oil &﹔ gas exploration sector. inherent cyclicality in the ship building sector ａnd ｅxecution of long orders within timeframe are the key rating sensitivitiesbharati shipyard commenced manufacturing of simple inlａnd cargo barges, deep﹣sea trawlers ａnd dredgers. over the years, the company upgraded itself to build tugs ａnd sophisticated support vessels required for the offshore industry.bharati has facilities located at ghodbunder (thane), ratnagiri, goa ａnd calcutta. the manufacturing process of the company is certified by bureau veritas quality international (bvqi), under iso 9001﹣2000 for quality stａndards with respect to the construction, supply ａnd repair of inlａnd, coastal ａnd ocean﹣going steel ships ａnd vessels.as on date, the company has an order book of 55 vessels, amounting rs 4,700 crore, to be ｅxecuted over the next four years. during fy07, the company acquired the entire plant ａnd equipment of swan hunter shipyard﹔ uk. the total cost of acquisition was $50 million ａnd funded through the proceeds of fccb issue of $100 million. during fy08, the company got into manufacturing of drilling rig ａnd received a contract to manufacture 477 feet leg length, completely equipped self﹣elevating mobile offshore drilling unit.

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