HINDUSTAN SHIPYARD LIMITED
PAPERS TO BE LAID ON THE TABLE OF LOK SABHA/RAJYA SABHA
AUTHENTICATED
RAKSHA RAJYA MANTRI Board of Directors . . . . 01
Chairman’s Statement . . . . 02
Notice . . . . 05
Directors’ Report 6 . . . . 06
Auditors’ Report31 . . . . 35
Comments of the C & AG of India36 . . . . 40
Balance Sheet . . . . 42
Profit & Loss Statement . . . . 43
Notes to the Accounts . . . . 44
Notes forming part of Accounts . . . . 54
Cash Flow Statement . . . . 67 CONTENTS Social Overheads . . . . 68
Last 10 years at a glance . . . . 70
Ships built . . . . 72 1!
OUR VISION To be a National Leader in Ship & Submarine building and Repairs
OUR MISSION To imbibe the latest in Ship / Submarine building and repair technology and serve the defence, maritime and oil sectors through all round
excellence in quality, delivery
and durability 1! BOARD OF DIRECTORS (As on date of AGM)
RAdm N K Mishra, NM, IN (Retd.) Chairman & Managing Director
Shri Gyanesh Kumar, IAS VAdm N N Kumar AVSM, VSM
Shri Rakesh Mahajan Dr. Devi Singh Cmde K S Subramanian, NM, IN (Retd.) Director (Finance & Commercial) Director (Shipbuilding)
PERMANENT SPECIAL INVITEES VAdm DSP VARMA PVSM, AVSM,VSM, IN(Retd.) DG, AKANKSHAH Shri RAJNISH KUMAR Addl. FA & Jt. Secretary Ministry of Defence (Fin) Cmde K L N Prasad Cmde Ashok Bhal, VSM, IN(Retd.) Director (Corporate Planning & Personnel) Director (Strategic Projects)
AUDITORS M/s G R Kumar & Co. Chartered Accountants Visakhapatnam Shri Inaitula Baig Registered Office Company Secretary Gandhigram, Visakhapatnam - 530005 BANKERS • Indian Bank • State Bank of India • UCO Bank • Syndicate Bank • Canara Bank Chairman's Statement CHAIRMAN’S STATEMENT
Dear Shareholders,
It gives me great pleasure to extend a warm welcome to all of you at the 60th Annual General Meeting of your Company.
The Annual Report for the year ended 31st Mar 2012 along with the Directors’ Report and audited Annual Accounts of the Company have been circulated to you and with your permission, I take them as read.
World Shipbuilding Industry
The shipbuilding industry is closely linked to developments in global shipping industry. Therefore, any slowdown in the shipping industry adversely affects the prospects of the shipbuilding industry. The Industry is passing through turbulent times since economic slowdown in 2008 and recovery is likely to take some more time. As regards world shipbuilding industry, China leads with major share with 41% whereas South Korea, Japan, Europe and others have shares of 33%, 20%, 2% and 4% respectively. As far as high value orders are concerned, Korea leads with 50% and other shipbuilding nations like China, Europe, Japan and other countries have 32%, 6% 5% and 7% respectively.
Indian Shipbuilding Industry
The Indian shipbuilders occupy 6th rank in the list of order book accounting for 1.36% of the global order book (in CGT). Correspondingly, the order book of Indian shipbuilders aggregates to 3.01 mn DWT with 168 vessels on order. The Indian shipbuilders specialize in construction of offshore vessels. However, the size of the dry bulk vessels as against the offshore vessels in terms of carrying capacity (i.e. DWT) being high, the former vessel category constituted approximately 87.5% of the Indian order book. In terms of the number of vessels on order, the Offshore and Specialised vessels accounted for 38.7% of the total order book. Indian Shipbuilding Industry stands adversely affected, post expiry of the “Shipbuilding Subsidy Scheme” and, with no announcement of the renewal of the said scheme; the Indian shipyards are rendered cost ineffective as compared to their global peers. Further, in the absence of ‘infrastructure industry’ status to the Shipbuilding Industry in India is at a disadvantageous position compared to other major global shipbuilding nations.
Company’s Performance & Major highlights of the Year 2011-12
Your Company is an old and premier shipyard of the country of historical importance. Your yard has always strived towards better productivity and optimum utilization of resources. The total income of the Company during the year is ` 604.34 Cr as compared to ` 686.17 Cr of last year. Your company has recorded a loss of ` 85.98 Cr during the said financial year. The losses in the Financial Year 2011-12 are mainly attributable to reduction in turnover, increase in pay & benefits and provision towards Liquidated Damages. Consequently, the accumulated losses are also increased to `1016.08 Cr as on 31 Mar 2012.
The Major highlights of the year 2011-12 are as under
Ø Ministry of Defence, Govt. of India has sanctioned an amount of ` 457.36 Cr for Phase – I modernisation (i.e. Refurbishment & Replacement of plant and Machinery) as an advance towards construction of LPDs.
2 Hindustan Shipyard Limited Chairman's Statement
Ø Your company has received an LOI for construction of one Fleet Support Vessel for Indian Navy. Ø Some of the noteworthy achievements during the year are as follows :- - Delivery of first of the five IPV series, first 50 ton Bollard Pull Tug for VPT and Third 53000 DWT Bulker for M/s GML. - Launching of last of the five series of IPV for Indian Coast Guard - Keels were laid for two 50 ton Bollard Pull Tugs for Kandla Port Trust - Repairs of ONGC Jack Up Rig was completed and the RIG was handed over to ONGC on 03 Aug 2012. - The Ship repair division has undertaken repairs of eighteen vessels including two foreign flag. - The Medium Refit cum Upgradation of INS Sindhukirti is under progress and recorded a cumulative production of 65% till end of Jul 2012.
Your yard is going through crisis as the company’s order book and financial position is unhealthy. The issues are further compounded with aged workforce, old & outlived machinery etc. The Management is putting its best efforts to bring the company back on track.
As brought out in last year, the company aims to complete the orders of Five IPVs for Coast Guard and 53,000 DWT Bulkers for M/s GML by end of Mar 2013 and thereafter the company’s focus will be on warship building. The company has already delivered the first vessel of five IPV in the FY 2011-12 and balance vessels are at advanced stages of construction. These vessels would be delivered in the FY 2012-13. Efforts are also being made to complete other orders within the contract schedules with no further time and cost overrun.
Strategic Initiatives
A dedicated department has been constituted namely “Business Strategy Department” to improve the company’s marketing strategies and to secure new orders. The company is also revamping some of the existing systems which will result in higher productivity and growth. Other strategic initiatives of the management include Turnkey Rate Contracts, Collaboration with Design Partners, revamping of Design Department, etc. Discussions are in progress for alliance with M/s BHEL and ONGC for construction, repair and maintenance of land based oil rigs. Your Company is also in talks with Fisheries Survey of India for MoU for maintenance of their vessels. Your company’s management is putting all its efforts to turn around the Company.
Grading vide Memorandum of Understanding
The performance of the company for the year 2011-12, based on self appraisal is “Good” in terms of the MoU signed with the Ministry of Defence.
Corporate Governance Good Corporate Governance has always been the hallmark of your Company. The philosophy of the Company is to ensure transparency in its dealings and compliance of country’s laws and regulations in order to promote ethical conduct of business. Quarterly compliance reports for Corporate Governance are sent to the Administrative Ministry as per applicable guidelines. The process to fill up the vacant positions of Independent Directors is at an advanced stage. A separate section on Corporate Governance furnishing applicable details forms part of the Directors’ Report. Yard Modernisation The present infrastructure of yard is out dated. Accordingly, there is an urgent need to refurbish and also renew plant and machinery to meet the future challenges. The yard has planned to modernise the yard in two phases. In the first phase, the existing infrastructures will be refurbished and obsolete equipments will be renewed.
Annual Report 2011-12 3 Chairman's Statement
Against LPD project, the yard has already received ` 457.36 Cr for the same from Govt. of India. In the second phase of modernisation, it is envisaged to upgrade the yard infrastructure to enable construction of sophisticated warships and strategic vessels for Indian Navy and Coast Guard. Future Outlook HSL is a major shipyard on the East Coast of India. The yard has been brought under the administrative control of Ministry of Defence in Feb 2010. Accordingly, the yard needs to realign its business strategy towards warship and submarine building /repairs for the Indian Navy and Coast Guard. The Ministry of Defence has nominated the yard for construction of Landing Platform Dock (LPDs) and, constructions of other vessels are also planned in the near future. Presently, modernisation of the yard with funds made available against LPD project is afoot. Considering the acquisition plans of the Indian Navy & Coast Guard, the future of the yard looks bright. Human Resource Developments The age profile of the employees of your Company and consequent superannuation of experienced personnel in near future is a matter of concern. The management is striving hard to augment the manpower through inductions and skill up-gradation to meet the future challenges. Auditors’ Comments The Statutory Auditors Report has already been circulated to all the shareholders. I am glad to inform you that the C &AG after having reviewed your Company’s accounts for the year ending 31 Mar 2012 have given a “Nil” comment certificate. Acknowledgements On behalf of the Board, I would like to thank you, our esteemed shareholders, for your continuing confidence and support. I take this opportunity to thank Ministry of Defence, Naval & Coast Guard Authorities, Dredging Corporation of India, Visakhapatnam Port Trust, ONGC Ltd for their unstinted support. I also acknowledge the support extended by the State Governments, Central Government, other statutory bodies and all other local authorities and agencies. Last but not the least, I thank all the employees of HSL for their sustained endeavours in meeting the challenges posed before the organisation. I also thank the trade unions for their constructive cooperation.
Jai Hind.
(N K Mishra) Rear Admiral, IN (Retd.) Chairman & Manging Director Visakhapatnam 21 Sep 2012
4 Hindustan Shipyard Limited Notice
NOTICE OF 60th ANNUAL GENERAL MEETING
Notice is hereby given that the 60th Annual General Meeting of the Shareholders of Hindustan Shipyard Ltd., will be held on Friday, the 21st September, 2012 at 11.00 AM at HSL Board Room, Hindustan Shipyard Limited, Gandhigram, Visakhapatnam-530 005 to transact the following business :
ORDINARY BUSINESS
1) Adoption of Annual Accounts of the Company for the year 2011-12
To receive, consider and adopt the Balance Sheet as at 31 Mar 2012 and the Profit & Loss Account for the year ended 31 Mar 2012 and the Reports of the Directors and Auditors thereon.
2) To fix the remuneration of the Statutory Auditors to be appointed by the Comptroller & Auditor General of India for the Financial Year 2012-13.
By order of the Board Hindustan Shipyard Limited
New Delhi (Inaitula Baig) 29 Aug 2012 Company Secretary
NOTES: (a) A member entitled to attend and vote is entitled to appoint a Proxy to attend and vote instead of himself and a proxy need not be a member of the Company.
(b) The instrument appointing the Proxy, if any, should, in order to be effective, be deposited at the Registered Office of the Company not less than 48 hours before the time of holding the meeting.
To
All the Shareholders, Statutory Auditors, Directors & Chairman of the Audit Committee. Permanent Special Invitees
Annual Report 2011-12 5 Directors Report
DIRECTORS’ REPORT FOR THE YEAR 2011-12
The Shareholders, Hindustan Shipyard Limited
Gentlemen,
Your Directors are pleased to present the 60th Annual Report on the working of the Company for the financial year 2011-12. The audited Profit & Loss account for the financial year 2011-12 and the Balance Sheet, as on 31 Mar 2012, together with the report of the auditors of the Company and the comments of the Comptroller & Auditor General of India on the Auditors’ Report under Section 619 (4) of the Companies Act, 1956 are appended to this report.
1. CAPITAL STURCTURE
The Authorised Equity Share Capital and Paid-up Equity Share Capital of the Company as on 31 Mar 2012 stood at ` 304.00 Cr and ` 301.99 Cr respectively.
2. PERFORMANCE HIGHLIGHTS
2.1 Financial Parameters
The Company has recorded a loss of ` 85.98 Cr during the year 2011-12. The stated loss is due to reduction in turnover, increase in pay & benefits and provision towards Liquidated Damages. The Accumulated Losses have increased to ` 1016.08 Cr as on 31 Mar 2012 from ` 930.10 Cr reported last year.
2.2 Value of Production
The Company achieved a value of production of ` 564.04 Cr during the Financial Year 2011-12.
2.3 MOU Rating
In terms of the parameters finally arrived at as against the Memorandum of Understanding signed with Government for the year 2011-12, the performance of the Company is expected to be rated as “Good”.
3. DIVISION-WISE PERFORMANCE
3.1. Shipbuildng
The Shipbuilding Division of your Company achieved a Value of Production of ` 254.76 Cr for 2011-12 as against ` 294.74 Cr in the previous year.
6 Hindustan Shipyard Limited Directors Report
3.1.1. Main Events
The following events have been achieved during the year 2011-12 in Shipbuilding Division: -
Sl Events Date ofevents Description of Vessel Owner (a) Fresh Orders 30 Dec 2011 03 Nos 25 T Bollard Indian Navy concluded Pull Tugs 30 Dec 2011 First of (02 Nos) Visakhapatnam Port Trust 50 T BP Tug (b) Deliveries 05 Jan 2012 First of (05 Nos) Indian Coast Guard Inshore Patrol Vessel 17 Feb 2012 Third (of 05 Nos) GML, Chennai 53000 DWT Bulker (c) Floating / 15 Jul 2011 Launching of Fifth (of 05 Nos) Indian Coast Guard Launching Inshore Patrol Vessel (d) Keel Laying 04 Jan 2012 First (of 02 Nos) Kandla Port Trust 50-Ton BP Tug 04 Jan 2012 Second (of 02 Nos) Kandla Port Trust 50-Ton BP Tug
Delivery Ceremony MV Good Trade, VC 11138 (Third of 05 Nos 53000 DWT Bulker) to GML, Chennai
Annual Report 2011-12 7 Directors Report
Delivery of IPV “Rani Abbakka” VC11154 to Indian Coast Guard
Delivery of M.V.A.W. Delima, VC11160 to Visakhapatnam Port Trust
3.1.2. Order Book Position The present order book of the yard comprise 23 Vessels of which 10 vessels are under various stages of construction. As on 31 Mar 12, the value of Shipbuilding orders is worth ` 1133.22 Cr. The details of the order book are as under:- Sl Yard No Type of the Vessel No of Owner Balance Vessels Contract Value (In ` Cr) (a) 11139 - 11140 53,000 DWT Diamond 2 GML, Chennai 147.07 series Bulk Carriers (b) 11155 - 11158 Inshore Patrol Vessels 4 Indian Coast Guard 75.65 (c) 11161 50-Ton Bollard Pull Tug 1 Visakhapatnam Port Trust 5.40 (d) 11162 - 11164 50-T Bollard Pull Tug 3 Indian Navy 149.68 (e) 11165 - 11172 Inshore Patrol Vessels 8 Indian Coast Guard 551.12 (f) 11173 - 11174 50 T Bollard pull Tugs 2 Kandla Port Trust 91.20 (g) 11175 - 11177 25 T Bollard Pull Tugs 3 Indian Navy 113.10 Total 23 1133.22
8 Hindustan Shipyard Limited Directors Report
3.1.3. Production/ Physical Performance Shipbuilding production in DWT and capacity utilisation achieved during the year 2011-12 as compared to previous year are as under: - Sl Description Unit 2011-12 2010-11 (a) Installed capacity as reckoned DWT 75250 75250 (at 3.5 Standard Pioneer Ships per annum) (b) Actual Production achieved DWT 56437 61583 (c) Capacity Utilisation Percentage 75% 82% (d) Productivity achieved M.hrs/DWT 45 42.5 3.2 SHIP REPAIRS 3.2.1 During the year, Ship Repair Division has undertaken repairs of 18 vessels (including 2 Foreign Flag) of diverse types. The customers include Indian Navy, DCI, SCI, ONGC & VPT etc. The repair dock was utilised to the optimum level. The turnover of Ship Repair Division during the year is ` 193.51 Cr as against ` 280.98 Cr of last year. 3.2.2 Major Work during the Year 2011-12 (a) Major repairs Jack up Rig ‘SAGAR RATNA’ owned by ONGC is under final stages of completion. This is an order worth more than ` 500 Cr. (b) Completion of repairs of INS Sandhayak worth ` 46.42 Cr. (c) Repairs of Dredge XIV at ` 18.05 Cr, Dredge IX at ` 15 Cr and Sagar Vijay for ` 15.00 Cr.
Handing over of Jack Up Rig "SAGAR RATNA" to ONGC after a major repair at HSL
Annual Report 2011-12 9 Directors Report
3.3 Retrofit Division The Value of Production on account of submarine repairs during the year 2011-12 was ` 115.77 Cr as against ` 83.27 Cr of the last year. 4. OPERATING RESULTS 4.1 The summarised financial results of the Company for the year 2011-12 is as under: In ` Cr Description Ship Building Ship Repairs Retrofit Unallocated Total Total Income 262.29 204.03 115.86 22.16 604.34 Profit/(Loss) before Depreciation, Interest and Income Tax & Extra- ordinary Items(PBDIT) (54.26) 23.12 (4.00) (31.05) (66.19) Depreciation 5.90 0.50 1.57 - 7.97 Interest & Finance Charges 3.66 7.50 0.44 0.22 11.82 Profit / (Loss) (63.82) 15.12 (6.01) (31.27) (85.98)
5. CONTRIBUTION TO NATIONAL EXCHEQUER
Your Company’s contribution to the National Exchequer is ` 32.69 Cr during the year 2011-12 by way of Income Tax, Service Tax, Customs Duty, Excise Duty and VAT. 6. FUTURE OUTLOOK HSL is a major shipyard on the East Coast of India. The yard has been brought under the administrative control of Ministry of Defence in Feb 2010. Accordingly, the yard needs to realign its business strategy towards warship and submarine building Visit of VAdm. N.N. Kumar, AVSM, VSM, CWP&A, MoD(N) for the Indian Navy and Indian Coast Guard. The on 30 Sep 2011 Ministry of Defence has nominated the yard for construction of Landing Platform Dock (LPDs) and construction of strategic vessels are also planned in near future. Both, Indian Navy and Indian Coast Guard have embarked upon massive acquisition plans and accordingly the future of the yard looks bright.
7. MODERNISATION The present infrastructure of yard is outdated and almost lived its life. Accordingly, there is an urgent need to refurbish and also renew plant and machinery to meet the future challenges. The management has planned to modernise the yard in Visit of High level MoD Team, Additional Secretary (DP) and two phases as under:- Joint Secretary (NS) on 01 Nov 2011
10 Hindustan Shipyard Limited Directors Report
Phase-I. Against LPD project, the yard has received ` 457.36 Cr for refurbishment and renewal of existing Plant & Machinery. Action has been initiated to expend this amount in a planned manner. Phase-II. In the second phase of modernisation of the yard, infrastructure would be augmented to enable construction of sophisticated warships and strategic vessels for Indian Navy and Coast Guard. 8. DRAWING & DESIGN OFFICE In the CAD/CAM Centre, in-house designs of Tugs (for Kandla Port Trust, Indian Navy, and Visit of IG S.P. Sharma PTM, TM, Visakhapatnam Port Trust) and Water Barges (for Commander Coast Guard (East) on 03 Nov 2011 Indian Navy) have been developed using Tribon M3 software. The Design Office has also carried out inclining experiment and validated the stability of ONGC Rig, which has undergone major refit at HSL. Digitisation of design drawings/data and augmentation of Tribon Licenses has been planned for implementation during Financial Year 2012-13. 9. QUALITY ASSURANCE Surveillance Audit by Lloyds was completed during 05-07 Jul 2011. The re-certification audit for renewal of certificate of approval of ISO 9001: 2008 was carried out during 14-17 Nov 2011. Due to change of scope, a fresh certification process is in progress by IRQS, a sister concern of Indian Register of Shipping (IRS). We hope to complete this activity by end Sep 2012. 10. SAFETY, SECURITY & PRODUCTIVITY The yard places utmost importance to safety of its employees. During the year, Plant Safety inspection was carried out by the safety personnel for identifying the unsafe conditions / unsafe acts and Celebration of 41st National Safety Day remedial measures for rectifying the same were suggested and implemented. The Safety department conducted Central Safety Committee meeting on safety with all members, co-opted members, other invitees, committee members and office bearers. Safety banners / posters / caution boards are displayed in order to create safety awareness among all employees. Safety training programmes were organised and photo identity cards were issued to personnel who have undergone Safety Training Programme. 41st National Safety Day was observed, in which the Chairman & Managing Director administered the safety pledge to all officers and representatives of unions/associations. Prizes were distributed to winners of the safety competitions Fire Service Week (14-20 Apr) that were conducted during the Safety Week. Demonstration on Extinguisition of Fire
Annual Report 2011-12 11 Directors Report
Employees of HSL have been deputed to participate in safety competitions conducted by the Andhra Pradesh Chapter of National Safety Council, Hyderabad on the occasion of 41st National Safety Day Celebrations. 11. INFORMATION TECHNOLOGY Your Company has successfully implemented the following tasks under IT initiatives during the year:- (a) Initiated Information Technology upgrade plan. (b) Increase in E-mail IDs for wider coverage. (c) Commissioning of E-procurement portal. (d) Commissioning of online Vendor Registration portal. (e) Introduction of leased internet service from BSNL to improve the access speed and usage. Your Company is in the process to re-design the HSL website with the help of NIC. It is intended to create a dynamic website which provide more efficiency and support e-Procurement.
12. ENVIRONMENTAL ASPECTS Visit of Department related Parliamentary Committee on Science & Technology, Environment & Forests on 21 Oct 2011 Your Company continues to be environment friendly and has fulfilled all the statutory requirements of central and state pollution control boards. The Company is committed to meet all the stipulated standards for maintaining and protecting the environment.
13. INDUSTRIAL RELATIONS
The industrial relations were cordial and harmonious during the year 2011-12.
14. WELFARE ACTIVITIES
Your Company’s concern for welfare of the employees continues to be paramount and various 63rd Republic Day Celebrations welfare measures have been implemented. The Hindustan Shipyard Recreation(HSR) club assisted by the Company undertakes the recreational activities for the employees. The Company has also provided crèche facility for the children of lady employees. HSR club conducted 63rd Republic Day and 66th Independence Day on 26 Jan 12 and 15 Aug 12 respectively at Colony Parade Ground. Cultural Programmes were arranged by HSR Club on these occasions.
15. TRAINING Training was imparted to large number of ITI Trade Apprentices in the designated trades. During the 66th Independence Day Celebrations year 2011-12, 386 Trade Apprentices have
12 Hindustan Shipyard Limited Directors Report
successfully completed training and were awarded National Apprenticeship Certificates by Govt of India, Ministry of Labour and Employment, NCVT, RDAT, Hyderabad. Training was also imparted to Graduate Engineers and Diploma Holders. 11 Engineering Graduates, 3 Technician (Diploma) Apprentices were imparted training under the Apprentices Act and awarded Certificate of Proficiencies by Govt. of India, Ministry of Human Resource Development, Board of Apprenticeship Training (SR), Chennai, during the year 2011-12. HSL also arranged in-plant training and extended facilities for project work to 977 students of various Engineering Colleges, Management Institutions and Marine Institutions. 16. GENDER BUDGETING In pursuance of the instructions of the Government of India, a “Gender Budgeting Cell” has been constituted with four women Officers to act as a Nodal Agency for all gender responsive budgeting initiatives and to ensure effective implementation of general development programme for women employees like training, advancement of skills, provision of welfare amenities at work place etc. There are presently 89 women employees in the yard. 17. MEDICAL BENEFITS HSL runs two dispensaries i.e., one in the yard which works from 7 AM to 10 PM and the other at residential area of colony which works round the clock to cater for the needs of employees and their dependents. Out patient medical facilities are extended through treatment by a system of panel doctors for employees of HSL. Under referral system, there are five hospitals which are used for in-patient treatment of HSL employees and HSL pays medical bills directly to these hospitals for their services. Majority of employees along with and their dependents are covered under the Medical Reimbursement Scheme for hospitalization. During the year, an amount of ` 4.90 Cr was expended towards medical treatment of employees and their dependents. Two ambulances are available at yard dispensary round the clock. Annual Eye Check up by Ophthalmologist from Government Hospital was also arranged, for crane operators and drivers. 18. CORPORATE SOCIAL RESPONSIBILITY HSL considers Corporate Social Responsibility (CSR) as a means to serve the society including all stake holders. All activities under the Company’s CSR vision forms an integral part of the business function and covers community development initiatives prioritised on local needs. Though, as per DPE guidelines, loss making units are not required to allocate funds for CSR activities, HSL continues to display its commitment towards CSR by way of voluntary services of employees and nominated management representatives. Besides this the Company has provided free electricity and water charges for the six educational institutions functioning under Gandhigram Educational Society. The expenditure on this account was ` 77993 during the year. As regards sustainable development activity, the Company runs a Tailoring Centre through its Ladies Club. This centre employs widows of employees and is engaged in stitching boiler suits for personnel of HSL. Material and other infrastructure is being made available by the Company. The Gandhigram Educational Society, HSL Rovers Scouts and HSL Recreation Club are engaged to provide in social service towards and promote cultural, educational and national integration through various programmes and awareness activities. 19. CORPORATE GOVERNANCE REPORT A report on Corporate Governance & compliance certificate is placed at Annexure-1. 20. MANAGEMENT DISCUSSION AND ANALYSIS A report on Management Discussion and Analysis is placed at Annexure-2.
Annual Report 2011-12 13 Directors Report
21. RESERVATION OF POSTS FOR SCs/STs Your Company has complied with all Govt directives with regard to reservation of posts for SC/ST. Representation of SC/ST employees in various categories of posts as on 01 Jan 12, Recruitments made & numbers filled by members of SCs/STs during the calendar year 2011 and representation of Ex-Servicemen & Women employees as on 01 Jan 12 are placed at Annexures 3 to 5 respectively. 22. RESERVATION OF PHYSICALLY HANDICAPPED 3% reservation for physically handicapped in all groups viz A, B, C and D posts are being complied as Visit of Smt. K.Kamala Kumari, Member of per the Govt of India rules. Backlog posts of National SC & ST Commission on 18 Aug 2012 physically handicapped candidates were filled in officer cadre during May 2012. Present percentage of physically handicapped employees is 2.95% and the shortfall will be filled as and when recruitment is taken up. 23. OFFICIAL LANGUAGE IMPLEMENTATION Official Language Implementation Committee meetings were held regularly. Employees were imparted Hindi training under the Hindi Teaching Scheme. During the year, 90 employees participated in Hindi workshops. In order to ensure the compliance of official language policy of Govt. of Visit ofHon’ble Chairman & Members of Parliamentary India and to encourage the use of Hindi, an inter- Committee on Welfare of SC/STs on 24 & 25 Jan 2012 departmental monthly incentive scheme is already in place. The Company’s Annual Report, MOU and documents under Section 3(3) of Official Language Act are being issued bilingually. To encourage the employees to read Hindi books, a separate Hindi Library has been set up. Hindi Fortnight was observed during 01-14 Sep 2011. On this occasion, various competitions were organised and cash awards were presented to successful employees in Prabodh, Praveen and Pragya examinations conducted under Hindi Training scheme. 24. ACTIVITIES OF VIGILANCE DEPARTMENT Vigilance department which is functioning in HSL under the guidance of Central Vigilance Commission keeps constant vigil on various activities of HSL. As a part of the above, Vigilance Department has been providing necessary assistance / guidance as and when required. Vigilance Awareness Week was observed between 31 Oct 2011 and 05 Nov 2011. As part of Vigilance Awareness Week, vigilance oath was administered and banners were displayed to create better vigilance awareness. Debate competition and seminar conducted with involvement of HSL employees and the students of HSL junior and Degree College. Workshops on ‘Disciplinary Proceedings’ and ‘Tendering Procedures’ were conducted on 28 Nov 2011 for the benefit of executives. 25. IMPLEMENTATION OF RIGHT TO INFORMATION ACT, 2005 As per directives of the Govt of India, the RTI Act 2005 is being complied, for which required infrastructure has been put in place. An RTI portal in the Company’s website is being maintained. Periodical reports on the progress of implementation of the Act are being submitted to statutory authorities/Government. All necessary information as per the provisions of RTI Act 2005 is being furnished to information seekers regularly. During the year 2011-12, your Company received 79 applications (directly and through MoD) and all of them have been replied.
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26. CONSERVATION OF ENERGY Information required under the Companies (Amendment) Act 1988 pertaining to Conservation of Energy, Technology Absorption and Foreign earnings and outgo is placed at Annexure-6. 27. PARTICULARS OF EMPLOYEES During the year 2011-12, no employee of HSL drew remuneration in excess of Rs 24 Lakhs per annum, (ie ` 2 Lakhs per month). Hence, the information required under Section 217(2A) of the Companies Act 1956, read with the Companies (Particulars of Employees) Amendment Rules 2002, is ‘NIL’. 28. STATUTORY AUDITORS M/s G R Kumar & Co., Visakhapatnam had been appointed as Statutory Auditors of the Company for the financial year 2011-12 by the C&AG as per Section 619(2) of the Companies Act 1956. The fees payable to Statutory Auditors for the year 2011-12 was ` 1,40,000 exclusive of out of pocket expenses. Replies of the Board of Directors on the observations of Statutory Auditors on the Accounts of the Company for the Year ended 31 Mar 12 are placed at Annexure- 7. 29. DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to the requirement under section 217(2AA) of the Companies Act 1956 with respect to the Directors' Responsibility Statement, following is hereby confirmed:- (a) That in preparation of the annual accounts, the applicable accounting standards have been followed alongwith proper explanation relating to material departures. (b) That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on 31 Mar 2012 and of the loss of the Company for the financial year ended 31 Mar 2012. (c) That the Directors have taken proper & sufficient care for maintenance of adequate accounting records in accordance with the provisions of Companies Act 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. (d) That the Directors have prepared the annual accounts on a going concern basis. 30. ACKNOWLEDGEMENTS Your Directors express their deep appreciation and place on record their gratitude to the Department of Defence Production, Ministry of Defence and Department of Public Enterprise for their administrative support and guidance. Your Directors are particularly grateful to the Indian Navy and Coast Guard, Dredging Corporation of India, Oil & Natural Gas Corporation Limited, Visakhapatnam Port Trust, Controller of Defence Accounts(Navy), Government of Andhra Pradesh, Departments of Customs, Income Tax, Excise, Service Tax & Sales Tax. The Directors also acknowledge their gratitude to the clients and all classification societies, in particular, IRS, ABS and DNV, who have ensured quality and adherence to the standards. Your Directors also place on record their appreciation for the assistance extended by the Company’s bankers Indian Bank and valuable advice rendered and co-operation extended by the Statutory Auditors i.e., M/s GR Kumar & Co., Internal Auditors i.e., M/s Brahmaya & Co and the Officers & Staff of the offices of Principal Director of Commercial Audit & Ex-Officio Member Audit Board, Bangalore and their Headquarters. Your Directors wish to place on record their appreciation to all employees at various levels for their hard work, dedication and commitment. FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
(NK Mishra) New Delhi Rear Admiral IN (Retd.) 29 Aug 2012 Chairman & Managing Director Annual Report 2011-12 15 Corporate Governance
Annexure –1 REPORT ON CORPORATE GOVERNANCE (For the Year 2011-12)
As per the Guidelines issued by the Department of Public Enterprises, Government of India, a Report on compliance of the provisions on Corporate Governance is enumerated in succeeding paragraphs.
PHILOSOPHY ON CORPORATE GOVERNANCE
1. Hindustan Shipyard Limited constantly endeavours to adopt and maintain highest standards of ethics in all spheres of its business activities. The company firmly believes that its business role is based on adherence to fundamental principles of Corporate Governance like honesty, integrity, accountability, adequate disclosures, legal & statutory compliances, and to protect, promote and safeguard interests of all stakeholders. It also strives to carryout its business obligations with good corporate values duly discharging its duties for maximum level of transparency in decision making to avoid conflicts of interests. It also accords due importance to adherence the adopted corporate values and objectives and discharging social responsibilities as a responsible corporate citizen.
BOARD OF DIRECTORS
2. Composition of the Board. The Board of Directors during the Financial Year 11-12 comprised seven members viz. four Whole Time Directors (Including the Chairman and Managing Director), two Part time Government Directors, and one Part time Non official Director (Independent Directors).
3. The details of the members of the board during the Financial Year ended on 31 Mar 12 are as under: -
Name of the Directors Period Category of Directorship No. of Other Directorship RAdm KC Sekhar 01 Apr 2011 to Chairman & Managing Director AVSM, VSM, IN (Retd) 31 Jul 2011 (Addl. Charge) 1 RAdm N K Mishra 01 Aug 2011 to Chairman & Managing Director Nil NM, IN (Retd) 31 Mar 2012 Shri Rakesh Mahajan 01 Apr 2011 to Whole Time Director Nil 31 Mar 2012 Cmde K S Subramanian 04 Jun 2011 to Whole Time Director Nil NM, IN (Retd) 31 Mar 2012 Cmde KLN Prasad 19 Dec 2011 to Whole Time Director Nil IN (Retd) 31 Mar 2012 VAdm NN Kumar 01 Apr 2011 to Part-time Govt. Director 1 AVSM, VSM 31 Mar 2012 Shri Gyanesh Kumar, IAS 01 Apr 2011 to Part-time Govt. Director 3 31 Mar 2012 Capt PVK Mohan 01 Apr 2011 to Part-time Non official Director 3 05 Jun 2011 (Independent) Dr Devi Singh 18 May 2011 to Part-time Non official Director 5 31 Mar 2012 (Independent)
16 Hindustan Shipyard Limited Corporate Governance
4. The following directors have joined on the Board of HSL during the financial year 2011-12 and upto the date of this report: -
(a) Commodore K L N Prasad, IN, (Retd.) has assumed the charge as Director (Corporate Planning & Personnel) on 19 Dec 2011 FN vide Ministry’s letter no. 2(2)/2011/HSL/D (SY) dated 01 Dec 2011.
(b) Commodore Ashok Bhal, VSM, IN (retd.) has assumed the charge as Director (Strategic Projects) on 02 Apr 2012 FN vide MoD letter 2(3)/2011/HSL/D (SY) dated 13 Jan 2012.
Brief profiles of the above mentioned Directors are as under:
Commodore K L N Prasad, IN (Retd.)
Cmde K L N Prasad, IN (Retd.) has assumed charge as Director (Corporate Planning & Personnel) of Hindustan Shipyard Limited (HSL) on 19 Dec 2011 FN.
Cmde K L N Prasad, IN(Retd.) was commissioned into Electrical Branch of the Indian Navy in Aug 1977. He has held various important staff, technical and training assignments in his long career of over 34 years in the Navy.
He has more than three decades of experience in various facets of submarine operations, maintenance and acquisition involving both conventional and strategic platforms. He has undergone intensive training with OEMs in Germany, USA, France etc in Maintenance and operation of German origin SSK submarines. Besides serving onboard Russian and German origin submarines, he has served as Joint Director of Submarine Acquisition and Project Director, Project 75 at Naval HQ, where he was closely associated with the indigenous construction of six Scorpene Class Submarines of French design at MDL, Mumbai. He has also served in DRDO as the Director (Electrical and IT) at HQ ATV Project and as Project Director, Underwater Ranges, Goa. He has been a member of various high level defence and inter governmental delegations concerning the submarine acquisition program of Indian Navy.
Commodore Ashok Bhal, VSM, IN (Retd.)
Cmde Ashok Bhal has assumed charges as Director (Strategic Projects) of Hindustan Shipyard Limited, Visakhapatnam with effect from 02 Apr 2012 FN.
An Electrical Engineer (B.E. from IIT Roorkee and M.Tech from IIT Kharagpur) with MBA, he has held several afloat and ashore appointments in the Indian Navy before joining HSL. Besides serving as Electrical Officer of four Naval Ships and fleet Electrical officer of Eastern Fleet, some of the important assignments held by him include Commanding officer INS Tunir, Addl DirectorGeneral WESEE, DGM of Naval Dockyard, Visakhapatnam and Chief Quality Assurance officer, Mumbai. He is a fellow of Institute of Electronics and Communication Engineers and has been trained at USA on VLF Communication. He has been awarded Vishisht Seva Medal for devotion to duty by the President of India.
Annual Report 2011-12 17 Corporate Governance
5. The Board of Directors of HSL as on the date of this report is as under:-
Name of the Directors Category of Directorship No. of Other Directorship RAdm NK Mishra, NM, IN(Retd.) Chairman & Managing Director Nil Shri. Rakesh Mahajan Whole Time Director Nil Cmde K.S Subramanian, NM, IN, (Retd) Whole Time Director Nil Cmde K L N Prasad, IN (Retd.) Whole Time Director Nil Cmde Ashok Bhal, VSM, IN (Retd.) Whole Time Director Nil VAdm N.N.Kumar, AVSM, VSM, IN Part-time Govt. Director 1 Dr Devi Singh Part-time Non official Director 5 (Independent) Shri Gyanesh Kumar, IAS Part-time Govt. Director 4 6. One post of Part Time Non Official Director (Independent Director) has fallen vacant due to completion of tenure of Capt. P V K Mohan on 6 Jun 2011. Further the strength of Functional Directors has been increased to five, which is more than 50% of the total strength. This has necessitated appointment of three additional Part time Non-official Directors (Independent Directors) on the Board of HSL. The said vacancies have been intimated to the Ministry for further action. Hence the present composition of the Board of Directors of the company is not in accordance with DPE guidelines. BOARD MEETINGS 7. The Board meets regularly and is responsible for the proper direction and management of the Company. During the financial year ended 31 Mar 2012, Seven Board Meetings were held on 29 Apr 2011, 26 May 2011, 27 Jun 2011, 23 Aug 2011, 16 Sep 2011, 29 Nov 2011 and 21 Feb 2012. DIRECTORS ATTENDANCE 8. Details of Directors attendance at the Board Meetings and Annual General Meeting are given below. Name of the Directors No. of Meetings Held during the Attended Attendance tenure of Directors at last AGM RAdm K C Sekhar, IN (Retd.) 3 3 - RAdm N K Mishra, IN (Retd) 4 4 Yes Shri. Rakesh Mahajan 7 7 Yes Cmde K S Subramanian, IN (Retd.) 5 5 Yes Cmde K L N Prasad, IN (Retd.) 1 1 - Capt P V K Mohan 2 1 - Dr Devi Singh 6 4 Yes Shri. Gyanesh Kumar 7 5 No VAdm NN Kumar, AVSM, VSM 7 6 Yes
18 Hindustan Shipyard Limited Corporate Governance
BOARD PROCEDURE
9. Board Meetings are held at least once in every quarter, and more often if considered necessary, focusing on business requirements. Every Board meeting is convened by giving proper and appropriate advance notice to the Board Members after obtaining approval from Chairman & Managing Director. Detailed Agenda, Management Reports and, other relevant documents are generally circulated well in advance to the members of the Board in order to have meaningful, informed and focused decisions at the meeting. To address specific urgent need, Board meetings are also called in shorter notice and sometimes considering business exigencies, Resolutions are also passed in circulation which is confirmed by the Board members in its very next meeting.
10. In general agenda papers are prepared by the concerned officials, concurred by the Functional Directors and put up for approval of Chairman & Managing Director. Duly approved Board notes and agenda papers are circulated among the Board members by the Company Secretary.
11. The Board and its members have complete access to all information of the company. The Board is also free to recommend inclusion of any matter in agenda for discussion. If necessary, senior management is also called to provide additional inputs to the items being discussed by the Board / committee.
PERMANENT SPECIAL INVITEES ON THE BOARD
12. Vice Admiral(Retd.) D.S.P.Varma, Director General, Akankshah, New Delhi & Dr S.C.Pandey, IAAS, Additional FA(P) & JS, MoD continued to be the permanent special invitees on the Board of HSL during the Financial Year 2011-12. As on the date of this report, Shri. Rajnish Kumar, Addl. FA & Joint Secretary, Ministry of Defence(Finance) has been appointed as Permanent Special Invitee in place of Dr SC Pandey vide MoD letter 2(4)/2011/HSL/D(SY), dated 09 Aug 12.
AUDIT COMMITTEE
13. The Audit Committee of the Board comprises of three members viz. One Part time non official Director as the Chairman of the Audit Committee and Two Part time Official Directors as the members of the Audit Committee. During the Financial Year, following were the Audit Committee Members: - (a) Dr Devi Singh Chairman (Part Time Non official Director) (b) VAdm N N Kumar Member (Part Time Official Director) (c) Shri Gyanesh Kumar Member (Part Time Official Director)
14. Since only one Non official Part time Director is on the Board of HSL, Audit committee was reconstituted with one Part Time Non Official Director and two Part time Government Directors. Hence the composition of Audit Committee is also not in accordance with the Corporate Governance Guidelines issued by Department of Public Enterprise.
15. The terms of reference of the Audit Committee are as specified in Sec 292A of the Companies Act, 1956 and the guidelines issued by the Department of Public Enterprises. The primary function of the committee is to assist the Board of Directors in fulfilling its responsibilities by reviewing the financial reports; the company’s systems of internal controls regarding finance, accounting and legal compliance by the management and Board.
Annual Report 2011-12 19 Corporate Governance
16. The Audit Committee reviews Internal Audit Reports, meets Statutory Auditors and Internal Auditors and discusses their findings, suggestions and other related matters and reviews the half yearly and annual financial statements before their submissions to the Board .
17. The Chairman of the Committee apprises the Board about the observations of the Audit Committee during the Board meeting. The minutes of the Audit Committee meetings are placed before the Board for noting.
18. During the financial year 2011-12, three meetings of the Audit Committee were held on 27 Jun 2011, 23 Aug 2011 and 21 Feb 2012.
19. The attendance of the members of the Audit Committee during the financial year 2011-12 is given below:
Name of the member No of meetings Held during the tenure Attended Dr Devi Singh 3 3 Shri Gyanesh Kumar, IAS 3 2 VAdm N N Kumar, VSM, IN 3 3
PROCUREMENT SUB COMMITTEE 20. In order to obviate procedural delays in connection with procurement of high value equipment, a Sub- committee of the Board with vested financial power was constituted in the 366th Board meeting held on 21 Feb 2012 with the following Members: - (a) RAdm N K Mishra, NM, IN (Retd.) Chairman Chairman & Managing Director (b) Dr Devi Singh Member Part time Non official Director (c) Shri Rakesh Mahajan Member Director (Finance & Commercial) (d) Concerned Functional Director Member
21. The Terms of Reference of the committee include powers to approve proposals for procurement of order for required assets/capital expenditure items, material, equipment, tools, stores & spares, imports, approvals of works, sub-contracts, and facility hire valued above ` 5 Cr and up to the value of ` 20 Cr in each case for sanctioned projects except nomination cases.
22. During the Financial year 2011-12, no meeting of the Procurement Sub-Committee was held.
REMUNERATION OF WHOLE TIME DIRECTORS
23. The remuneration of Whole Time Directors is fixed by the Government as the Company is a Government Company within the meaning of Sec 617 of Companies Act, 1956.
REMUNERATION TO PART TIME DIRECTORS
24. Part-time Official Directors are not eligible for sitting fees attended by them. The Part-time Non-Official (Independent) Directors are paid sitting fees as per the provisions of the Companies Act, 1956 for attending
20 Hindustan Shipyard Limited Corporate Governance
each meeting of the Board /committee (s) of the Board and reimbursed actual expenditure for attending the meeting of the Board/Board Committee (s).
CODE OF BUSINESS CONDUCT AND ETHICS
25. As per guidelines issued by Department of Public Enterprises, the company has formulated “Code of Business Conduct and Ethics for Board Members and Senior Management” for better Corporate Governance and fair/ transparent practices. A copy of the same has been circulated to all concerned and also available in the website of the Company. The Board members and senior management personnel, to whom the said code is applicable, have affirmed compliance of the same for the year ended 31 Mar 12.
ANNUAL GENERAL MEETING
26. The details of the last three Annual General Meetings of the company are given below:-
Year Date Time Location 2008-09 22.09.2009 04.00 P.M. Transport Bhavan, New Delhi 2009-10 24.09.2010 11.00 A.M. Shipyard House, New Delhi 2010-11 16.09.2011 11.00 A.M Shipyard House, New Delhi
WHISTLE BLOWER POLICY
27. The company has framed a whistle blower policy with the approval of Board of Directors in its 366th Board Meeting held on 21 Feb 2012 to protect its whistle blowers. The whistle blower policy has been circulated to all HoDs and displayed in the website.
RISK MANAGEMENT POLICY
28. The company is in process of framing a Risk Management Policy.
DISCLOSURES
29. During the year 2011-12, the company has not entered into any transactions with any Director that may have potential conflict with the interest of the company at large. The members of the Board, apart from receiving Director’s remuneration (wherever applicable), do not have any material or pecuniary relationship or transaction with the company which in judgment of the Board may affect independence of judgment of the Directors.
30. During the last three years, there has been no instance of non-compliance by the company on any matter related to Companies Act, 1956 or any Industrial Law.
31. The guidelines issued by the Department of Public Enterprises, Govt of India have been complied with.
32. The company has not incurred any expenditure which is not for the purpose of Company’s Business, nor has the company incurred any expenditure which is person in nature for the Board of Directors and Top Management.
* * *
Annual Report 2011-12 21 Corporate Governance
DECLARATION
As provided under the guidelines on Corporate Governance for CPSEs 2010 issued by the Department of Public Enterprise, Government of India, it is hereby declared that all Board members and Senior Management personnel have affirmed compliance with the code of conduct for Directors and Senior Management personnel of Hindustan Shipyard Limited for the year ended 31 Mar 2012.
For Hindustan Shipyard Limited
New Delhi (N K Mishra) 29 Aug 2012 Rear Admiral, IN (Retd.) Chairman & Managing Director
22 Hindustan Shipyard Limited Corporate Governance
Annual Report 2011-12 23 Management Discussion & Analysis
Annexure – 2 MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Introduction
1. The Hindustan Shipyard Ltd is a fully owned Central Public Sector Undertaking of Govt of India under the administrative control of Ministry of Defence. The company was incorporated in 1952 and has its registered office and works situated at Visakhapatnam. The administrative control of company changed from Ministry of Surface Transport & Shipping to Ministry of Defence in Feb 2010 to support the Indian Navy & Coast Guard in their respective expansion plans.
Industry Structure and Developments
2. The Indian shipbuilding industry consists of around 32 public and private sector yards. In recent years, it has witnessed entry of new shipbuilders from the private sector. With liberalisation policy of the Government, these shipbuilders have become serious competitors to Defence Public Sector yards.
3. With opening of Defence market to Private Sector, your Company is facing a stiff competition. To meet this stiff competition an intensive modernisation has been planned. On successful completion of same, your Company will be able to meet the future challenges and remain competitive in domestic as well global markets. The modernisation is expected to be completed by end of 2013. The major customers of your Company i.e. Indian Navy and Coast Guard have announced ambitious expansion plans and your Company is putting its best efforts to secure good orders from its major customers. This would help the yard to turn around & become profit making.
SWOT Analysis
4. In the changing environment, your Company has identified the following strengths, weaknesses, opportunities and threats:- (a) Strengths. • Largest Shipyard on East coast of India. • Ergonomically well laid out facilities with steel throughput capacity of 20000 tons per year. • Only shipyard with submarine repair capability on East coast. • Large covered Building Dock for un-interrupted work round the year. • Strategically located at the harbor entrance with water depth of about 10 meters. • Located close to major customers like Eastern Naval Command, DCI and VPT • Capable of building ships up to 80000 DWT • Excellent quality of work with low rejection rates • 850m of wharfage with adequate cranage • Large Dry dock and wet basin with exclusive workshops to facilitate ship repairs • Cranage to handle blocks/loads upto 300 tons
24 Hindustan Shipyard Limited Management Discussion & Analysis
• Three low bed transporters up to 200 tons capacity • ISO 9001-2008 certified yard • Good Quality Assurance systems and test facilities
(b) Weaknesses. • Aging work force with low productivity • Dilution of expertise on account of retirement/superannuation of workforce • Old plant and machinery with frequent breakdown • Acute cash/working capital constraints • Lack of sufficient orders • High costs /overheads due to increased wages
(c) Opportunities. • Increased requirements of ships to meet Defence & coastal security needs • Large scope for repairs due to increased maritime/offshore fleet & platforms • Possibility of entering into mutually beneficial AMCs with major customers to ensure long term orders • Construction of Strategic Vessels • Possibility of Joint Ventures to leverage strength
(d) Threats. • Competition from private sector shipyards • Poaching of competent personnel by other shipyards • De-motivation of workforce due to lack of orders and poor financial & security environment
Infrastructure Modernisation and Diversification
5. The Modernisation Project embarked upon by the Company to meet the future challenges in terms of technology and workload is being implemented in two phases. An amount of ` 457.36 Cr for the said modernisation has been provided by the Govt of India as an advance towards construction of LPD Project for the Indian Navy.
6. Tendering action has been initiated for replacement of EOT Cranes, Welding Equipment, Exhaust Ventilation, Submersible and Ballast Pumps, DSN System in workshops and HT Cables. Selection & appointment of a Project Consultant is under Visit of Additional Secretary Defence Production on 10 Mar 2012 process. The company also plans to implement ERP system to streamline processes.
Annual Report 2011-12 25 Management Discussion & Analysis
Segment-wise / Product-wise Performance
7. Your Company has three major revenue segments i.e. Shipbuilding, Ship Repairs & Submarine Retrofit. The Total Turnover during the Financial Year 2011-12 from these segments was ` 564.04 Crs.
8. Segment wise performance during the FY 2011-12 was as under:-
(a) Shipbuilding (i) Your Company has delivered 03 vessels during the FY 2011-12 i.e. first IPV of five IPV series for Indian Coast Guard, first of two 50 T Bollard Pull Tug for Visakhapatnam Port Trust and third of six 53,000 DWT Bulk Carrier for M/s Good Earth Maritime Limited. Also, keels were laid for two KPT vessels and last of five IPVs “Rani Rashmoni”, was launched from the slipway. The Shipbuilding Division of your Company has recorded a turnover of Visit of RAdm. Sekhar Mittal, NM CSO(Tech), ` 254.76 Cr during the financial year. Eastern Naval Command on 26 Nov 2011 (ii) Your Company also received an order for 03 Nos. 25 Ton Bollard Pull Tugs for Indian Navy. Your Company is putting its best efforts to improve the productivity and order book by securing major orders from Indian Navy and Coast Guard. (b) Ship Repairs (i) Your Company has undertaken repairs of 18 Vessels, which includes two of Foreign Flag and balance of Indian Navy, DCI, SCI, Visit of Ms. S.Rawla, IAS, Secretary BRPSE, ONGC and VPT etc. Ship Repair segment of Department of Public Enterprises on 09 May 2012 your Company has always been profitable and is being given utmost thrust as it carries higher margin in comparision to shipbuilding segment. During the entire year, the repair dry dock was utilised to its most optimum level. (ii) The Ship repair Division recorded a Turnover of ` 193.51 Cr. during the financial year. (c) Submarine Retrofit
Submarine retrofit is a niche activity in repair Visit of National Technical Research Organization Team, domain requiring high skill set and New Delhi on 30 May 2012
26 Hindustan Shipyard Limited Management Discussion & Analysis
competence. The Submarine Retrofit Division of your Company has been concentrating on refit of submarines of Indian Navy. Presently INS Sindhukirti, an EKM Class submarine is under Medium Refit- cum-Upgradation. The turnover of this Division during the financial year was Rs 115.77 Cr. Future Outlook 9. As reported, the Company has been transferred from MoS to MoD in Feb 2010 and poised to play a major role in the expansion plan of Indian Navy and Coast Guard. Your Company is giving its maximum thrust to Warship Building and aligning its capabilities towards Construction of warships / submarines. As brought out above, your Company is undergoing modernisation, which will enhance the yard’s capabilities. Risks & Concerns 10. The major concern of the Company is Low Order Book, Financial Position and the yard is also facing problems of aged workforce, outdated plant & machinery etc. This leads to suboptimal production & associated problems. Efforts are in hand to secure high value orders in near future. Towards this, Ministry of Defence has nominated the yard to construct Landing Platform Dock & 75(I) submarines. However contract finalisation is likely to take some time, which is a cause of concern. 11. In order to secure high value orders, a specialised department namely “Business Strategy Department” has been created to improve the marketing strategies of the Company. The Company is putting its best efforts to market itself and the Company is expecting some high value orders in near future from Indian Navy and Coast Guard. With the increase of the order book and productivity, your Company expects to earn profits in future. Internal Control System & their Adequacy 12. Your Company has an adequate system of Internal Controls implemented towards achieving effectiveness & efficiency of operations and compliance with applicable laws and regulations. The system comprises clear defined organisation structure, pre-identified authority levels and procedures issued by the management covering all vital and important areas of activities. viz. Purchase, Material Control, Works, Finance & Accounts, Personnel etc. 13. The Management monitors compliances to Company’s procedures and policies with well defined annual audit programme. The significant audit observations are reported to the Audit Committee of the Board of Directors. Financial Performance of the Company 14. The Financial performance during the year as compared to last year is as under:- ` in Crores Details As on31 Mar 12 As on31 Mar 11 Turnover 604.34 686.17 Profit /(loss) Before Depreciation, Interest & Tax (66.19) (265.47) Profit / (Loss) Before Tax (85.98) 165.18* Profit / (Loss) after Tax (85.98) 54.99 Cumulative Profits / (Losses) (1016) (930)
(The PBT is positive due to Financial restructuring amount of ` 452.68 Cr considered as Income)
Annual Report 2011-12 27 Management Discussion & Analysis
Development in Human Resource 15. Employees are the most valuable resource of any Company. Therefore the Company gives utmost importance to training & development of its human resources to maximise their contribution. The employees were nominated for various in-house / external seminars and training modules. Awareness training on occupational health safety, environment & fire fighting were conducted during the year. 16. The Company runs an Apprentice Training School to meet the need for skilled manpower. During the Year, 386 Trade Apprentices have successfully completed training and were awarded National Apprenticeship Certificates by Govt of India, Ministry of Labor and Employment, NCVT, RDAT, Hyderabad. 17. Training was also imparted to Graduate Engineers and Diploma Holders. 11 Engineering Graduates, 3 Technician(Diploma) Apprentices were imparted training under the Apprentices Act and awarded Certificate of Proficiencies by Govt. of India, Ministry of Human Resource Development, Board of Apprenticeship Training (SR), Chennai, during the year 2011-12. HSL also arranged in-plant training and extended project work facilities to 977 students of various Engineering Colleges, Management Institutions and marine Institutions. Industrial Relations
18. The industrial relations were cordial and harmonious during the financial year.
Environment Aspects
19. Your Company continues to be environment friendly and has fulfilled all the statutory requirements of central and state pollution control boards.
Corporate Social Responsibility
20. HSL considers Corporate Social Responsibility (CSR) a mean to serve the society including all stake holders. All activities under the Company’s CSR Vision form an integral part of its Business Function and covers community development initiatives prioritised on local needs.
21. As part of sustainable development activity, the Company uses the services of few of the widows of employees through the Tailoring Centre run by the HSL Ladies Club, for stitching boiler suits for officers, staff and workmen, by providing the material, sewing machines etc and paying them on piece rate basis.
22. The Gandhigram Educational Society, the HSL Rovers Scouts and HSL Recreation Club are providing much needed impetus to social service in promotion of cultural, educational and national integration through various programs and awareness activities.
28 Hindustan Shipyard Limited Annexure - 3 Annexure - 3 Annexure January 2012 st JAN, 2012 JAN, ST JAN 2011 AND 1 JAN st January 2011 As on 1 st Total Scheduled Scheduled Total Scheduled Scheduled 1699 222 60 1589 210 59 Strength Castes Tribes Strength Castes Tribes CATEGORIES OF POSTS AS ON 1 CATEGORIES POSITION REGARDING REPRESENTATION OF SCHEDULED CASTE AND TRIBE IN VARIOUS REPRESENTATION POSITION REGARDING Classification of Post/ Services of Post/ Classification 1 on As PERMANENT: “A”GROUP “B”GROUP “C”GROUP Safaiwala) “D” (Excluding GROUP “D” SafaiwalaGROUP TEMPORARY: “A”GROUP “B”GROUP 411 “C”GROUP Safaiwala) “D” (Excluding GROUP “D” SafaiwalaGROUP 124 Act, 1961) “D”(under Apprentices GROUP 92 317 71FIXED TERM CONTRACT: “A”GROUP 326 28 “B”GROUP 56 “C”GROUP 10 71 “D” (Including Safaiwala)GROUP - 61 “D” (Safaiwala)GROUP - - 12 - - 392 28 - 652 - 16 143 - - 76 285 - - - 67 146 43 121 - 32 31 - 51 - - 10 - 67 - - 32 24 7 - 4 14 - 30 - - - 602 - - - 5 2 - - 2 - 135 - - - - 39 15 29 - 31 - - 5 - - 6 5 1 - - 2
Annual Report 2011-12 29 Annexure - 4 Annexure - 4 Annexure duled Castes Scheduled Tribes Scheduled duled Castes Reason for MEMBERS OF SCs/STs year the Position during the Reserved Filled Reserved Filled to improve Posts filledPosts Posts Posts Posts Posts taken steps Number ofand shortfall Classification Classification of Posts/Services Sche Total PARTICULARS OF RECRUITMENT MADE DURING THE CALENDAR YEAR 2011 AND THE NUMBER FILLED BY YEAR MADE DURING THE CALENDAR OF RECRUITMENT PARTICULARS PERMANENT: “A”GROUP “B”GROUP “C”GROUP Safaiwala) “D” (Excluding GROUP “D” SafaiwalaGROUP Act, 1961 “D”(under Apprentices GROUP FIXED TERM CONTRACT: “A”GROUP “B”GROUP - - “C”GROUP Safaiwala) “D” (Excluding GROUP 10 “D” SafaiwalaGROUP 14 - - - 4 - - 4 - - - 1 - - - 4 ------1 - - 2 ------2 - - 2 - - - - 2 ------
30 Hindustan Shipyard Limited Annexure - 5 es 3.31 0.99 11.94 80.00 Annexure - 5 Annexure 8.391.05 9 23 6.29 8.07 56.4 2 5.12 31.03 3 10.34 Ex- servicemen Women employe servicemen Ex- Women Number % Number % “D” AND NUMBER OF WOMEN EMPLOYEES AS ON “D” AND NUMBER OF WOMEN EMPLOYEES 1589 11 0.69 36 2.26 JANUARY 2012 JANUARY st 1 REPRESENTATAION OF EX-SERVICEMEN IN GROUP “C” OF EX-SERVICEMEN AND REPRESENTATAION Classification Classification of Posts/ServicesPERMANENT: “A”GROUP “B”GROUP “C”GROUP Safaiwala) “D” (Excluding GROUP “D” SafaiwalaGROUP Strength Total Act,1961) “D”(Under Apprentices GROUP YEARS: FOR TWO FIXED TERM CONTRACT “A”GROUP “B”GROUP “C”GROUP Safaiwala) “D” (Excluding GROUP 392 - 143 285 5 67 - 12 3 1.27 602 - — - 39 13 - 29 - - - 22 - 9 - 8 - 6 - - GROUP “D” SafaiwalaGROUP 15 - - 12
Annual Report 2011-12 31 Annexure - 6
Annexure - 6 INFORMATION AS PER SECTION 217(1)(E) READ WITH THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF DIRECTORS) RULES 1988 AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR 2011-12 CONSERVATION OF ENERGY
a) Energy conservation measures taken: 1. Reduction in lighting to optimum levels. 2. Running of heavy loads like Air Compressors are restricted to minimum. 3. Operation of Distribution Transformer around 70% loading by turning off during off Peak Hours. 4. Switching off Plant & Machinery when not in use. 5. Replacement of old welding Machines with New welding machines including energy saving units. 6. Replacements of old switchgear & old PLCA cables with suitable capacity XLPE Cables & New Switch gear etc. 7. Replacement of old lighting with energy efficient CFL lamps. b) Additional investments and proposals, if any, Nil being implemented for reduction of consumption of energy.
c) Impact of the measures at (a) & (b) above for 5,70,498 Units reduction of energy consumption and consequent impact on the cost of production of goods during the year 2011-12. d) Particulars with respect to conservation of energy:
F O R M – A Power and Fuel Consumption Current Year Previous Year 1. Electricity a) Purchased units 1,22,99,502 1,11,79,800 Total Amount ` 5,57,96,267 ` 5,36,32,960 Rate per Unit ` 4.53 ` 4.79 b) Own generation Nil Nil 2. Coal Nil Nil 3. Furnace Oil Nil Nil 4. Consumption per unit of production N.A. N.A.
32 Hindustan Shipyard Limited Annexure - 6
F O R M - B
A. RESEARCH & DEVELOPMENT
1. Specific areas in which R&D was carried out In house Designs development for • 25 Ton Bollard Pull Tug for Indian Navy • IPVs concept design for Indian Coast Guards • Offshore Patrol Vessels concept design for Indian Coast Guard 2. Benefits derived as a result of the above R&D • Saving in Design cost and time. • Developing in house capabilities in Design.
3. Future Plan of Action • Strengthening of Design infrastructure by adding skilled designers and arranging training to personnel. • Proposal to augment the design capabilities by adding more Tribon licenses in the near future as a part of the Phase-1 modernisation 4. Expenditure on R&D Nil (a) Capital; (b) Recurring (Revenue)
B. TECHNOLOGYY ABSORPTION, ADAPTATION AND INNOVATIONS
Nil
C. FOREIGN EXCHANGE EARNINGS & OUTGO a) Activities relating to export Initiatives taken to increase export market for products and services and export plans. Nil b) Total Foreign Exchange used and earned:
Used : a) Material procurement ` 192.22 Crores
b) Others ` 2.54 Crores
Total ` 194.76 Crores
Earned ` 3.38 Crores
Annual Report 2011-12 33 Annexure - 7
Annexure -7 OBSERVATIONS OF THE STATUTORY AUDITORS ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31ST MARCH, 2012 AND THE REPLIES OF THE BOARD OF DIRECTORS
Sl. Observation Reply
1. 4(g) (a) Accounting of liabilities towards Accounting of liabilities towards un-settled & unsettled and incomplete sub-contract work incomplete sub-contract works at the end of the at the end of the year on estimated basis. year is made based on technical assessment / estimation of part work completion at the end of the year. This is as per Generally Accepted Accounting Principles.
2. 4(g) (b) Effect of using estimates for arriving The Accounting Policy No. 4(A) to Note 16 for at the total contract cost for the purpose of accounting of income in respect of Ships under recognition of income from Ship Building construction is in line with Accounting Standard-7 contracts under percentage completion as per which total cost for completion of the method including recognition of anticipated contract is to be estimated to arrive at the loss on Ship building contracts and for percentage completion. recognition of income from Ship repairs The Accounting Policy No. 4(B) to Note 16 for activity under proportionate completion accounting of income from other activities including method and the consequent impact if any on Ship repairs and Submarine activities on accrual the profitability and current assets as on the basis by adopting proportionate completion method Balance Sheet date is not ascertainable. is in line with Accounting Standard-9. Hence recognition of income is as per Accounting Standards.
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
(N.K. Mishra) New Delhi Rear Admiral (Retd.) 29 Aug 2012 Chairman and Managing Director
34 Hindustan Shipyard Limited Auditor's Report G.R. Kumar & Co. Chartered Accountants Audit | Consulting & Project Advisory | Direct & Indirect Tax AUDITOR’S REPORT
The Members of Hindustan Shipyard Limited, New Delhi.
1. We have audited the attached Balance Sheet of Hindustan Shipyard Limited (“the Company”) as at 31st March, 2012, Profit & Loss Account for the year ended on that date annexed thereto and cash flow statement for the year ended on that date. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards generally accepted in India. These Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of “the Companies Act, 1956” of India (the Act) and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we set out in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3, we report that: a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit. b) In our opinion, proper books of account, as required by law have been kept by the Company so far as appears from our examination of such books. c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account. d) In our opinion the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in Sub-Section (3c) of Section 211 of the Companies Act, 1956. e) We have placed reliance on technical/commercial evaluation by management in respect of valuation of ship-building under construction and income accrued in respect of ship repair and submarine retrofit activities and provisions towards related sub-contract and off-loaded jobs at the end of the year. f) Kind attention is drawn to the following : i. Para 18 of Note 16(B), regarding non receipt of letters of balance confirmation from various customers. ii. Para B(1.4 & 1.5) to Note 16 (Notes to Accounts), wherein details of various demands and claims totaling ` 36,549.49 lacs, contested by the company before different judicial and appellate authorities and arbitration proceedings; are provided. The said matters stated therein are all sub-judice and are yet to attain finality.
Annual Report 2011-12 35 Auditor's Report
iii. Para 2 to Note 4 (Notes to Accounts), wherein an amount of ` 45,736 lacs was received from Ministry of Defence, Government of India in Dec 2011; towards 'Refurbishment and replacement of machinery and infrastructure'. Since the same has remained unutilised as at year-end; the same has been disclosed under "Advance from Customers" and AS-12 (Accounting for Government Grants) would be applied as and when utilized. g) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and subject to the following :- a) Accounting of liabilities towards unsettled and incomplete sub-contract work, at the end of the year on an estimated basis. b) Effect of using estimates for arriving at the total contract cost for the purpose of recognition of income from ship building contracts under percentage completion method, including recognition of anticipated loss on ship building contracts and for recognition of income from ship repair activities under proportionate completion method and the consequent impact, if any, on the profitability and current assets as on the Balance sheet date is not ascertainable.
express a true and fair view, in conformity with the accounting principles generally accepted in India.
a. in the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2012.
b. in the case of the Profit and Loss account, of the Profit for the year ended on that date.
c. in case of the cash flow statement, of the cash flows for the year ended on that date.
d) The provisions of Section 274(1)(g) of the Companies Act, 1956 are not applicable to the company in terms of Notification No. G.S.R.829(E) dated October 21, 2003 issued by Department of Company Affairs, Government of India
For G R Kumar & Co., Chartered Accountants (Firm Regn No. 004941S) Visakhapatnam 16 Jul 2012 (G R Kumar) Partner Membership No. 052367
36 Hindustan Shipyard Limited Auditor's Report
ANNEXURE TO THE AUDITOR’S REPORT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE i) a) While the Company has maintained proper records showing full particulars, including quantitative details of fixed assets, some of the fixed assets were not readily identifiable with the plant identification numbers in the register. The company has initiated steps to record the asset identification numbers on such assets. Further, Management needs to strengthen internal control procedures with respect to capitalization to plant & machinery items including defining its "put to use".
b) The fixed assets have been physically verified by the management during the year in accordance with a phased programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. According to the information furnished to us, no material discrepancies have been noticed on such verification.
c) The Fixed Assets disposed off by the Company during the year do not form a substantial part thereof ii) a) Physical verification of inventory has been conducted during the year by the management at reasonable intervals.
b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on such verification between the physical stocks and the book records were not material. iii) a) The Company has not granted any loans either secured or unsecured to companies, firms, or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly sub-clause (b),(c) & (d) of clause (III) of paragraph 4 of the order are not applicable.
b) The Company has not taken any loans, secured or unsecured from companies, firms, or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, sub- clauses (f) & (g) of clause (iii) of paragraph 4 of the Order are not applicable. iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and sale of goods and services. v) a) According to the information and explanations given to us there are no contracts or arrangements referred to section 301 of the Companies Act, 1956, which are required to be entered in the register maintained under the section.
b) Accordingly, the provision of the sub-clause (b) of clause (v) of paragraph 4 of the order is not applicable to the Company. vi) The Company has not accepted any deposits from public. Accordingly clause (VI) of paragraph 4 of the order is not applicable
Annual Report 2011-12 37 Auditor's Report vii) Although the Company has an internal audit system, which is commensurate with its size and nature of its business, yet in our opinion the same needs to be strengthened with respect to Scope, Coverage, Report Content etc., Further, the emphasis should shift from traditional transaction-based auditing to risk-based auditing. viii) According to the information and explanations given to us, maintenance of cost records is not required under section 209(1)(d) of the Companies Act,1956 in respect of the business activities carried out by the Company. ix) a) According to the records of the Company, the company is regular in depositing with appropriate authorities undisputed current statutory dues including provident fund, employees state insurance, income tax, sales-tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues applicable to it.
b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, sales tax, wealth tax, service tax, customs duty, excise duty , cess and other material statutory dues applicable to it were in arrears as at 31st March, 2012 for a period of more than six months from the date they became payable.
c) As at 31st March, 2012, there are no cases undisputed dues, which have not been deposited with the respective authorities in respect of statutory dues, except disputed penal interest on belated remittances of Provident fund of ` 109.78 lakhs pending before the Hon'ble High Court of Andhra Pradesh, ESI dues of ` 254.70 lacs, an amount of ` 2650.50 lakhs together with interest and penalities thereon in respect of Service Tax payable in respect of INS Sindhukeerti and ` 17.93 lacs towards other dues to Government. x) The Company has accumulated losses which are more than fifty percent of its net worth. Beside it has incurred cash loss in the financial year covered by our audit and the immediately preceding financial year. xi) The Company has no overdues outstanding in respect of any loans from financial institutions or banks. xii) The Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly clause (xii) of paragraph 4 of the order is not applicable. xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund/society. Accordingly the clause (xiii) of paragraph 4 of the order is not applicable. xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other instruments. Accordingly the clause (xiv) of paragraph 4 of the order is not applicable. xv) The Company has not given any guarantee for loans taken by others from banks or financial institutions. Accordingly the clause (xv) of paragraph 4 of the order is not applicable. xvi) During the year, the company has received a sum of ` 45,736 lacs for refurbishment & replacement of machinery and infrastructure from Government of India, Ministry of Defence; and the same has remained unutilized as at year end.
38 Hindustan Shipyard Limited Auditor's Report xvii) According to the information and explanations given to us and on overall examination of the Balance Sheet of the Company, we report that no funds raised on short term basis have been used for long term Investment. xviii) During the year, the Company has not made any preferential allotment of shares. Accordingly the clause (xviii) of paragraph 4 of the Order is not applicable. xix) The Company has not issued any debentures so far. Accordingly clause (xix) of paragraph 4 of the Order is not applicable xx) During the year, the Company has not raised money by Public issue. Accordingly the clause (xx) of paragraph 4 of the Order is not applicable. xxi) According to the information and explanation given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.
For G R Kumar & Co., Chartered Accountants (Firm Regn No. 004941S) Visakhapatnam 16 Jul 2012 (G R Kumar) Partner Membership No. 052367
Annual Report 2011-12 39 C & AG Comments
40 Hindustan Shipyard Limited Accounts
ACCOUNTS
Annual Report 2011-12 41 Balance Sheet Balance Sheet as at 31st March, 2012 ` in lakhs Sl.No. Particulars Note No. As at As at 31st March, 2012 31st March, 2011 I. EQUITY AND LIABILITIES i. Shareholders’ Funds Share capital 1 30,199.22 30,199.22 Reserves and surplus 2 (101,599.06) (93,000.72) ii. Non-current liabilities 3 Long term borrowngs 37,221.25 62,767.25 Other long term liabilities 982.42 1,198.65 Long term provisions 17,909.30 15,761.60 iii. Current Liabilities 4 Short term borrowings 10,482.31 9,319.82 Trade payables 16,685.06 16,905.94 Other current liabilties 97,861.39 67,971.64 Short term provisions 18,229.41 12,321.10 TOTAL 127,971.30 123,444.50 II. ASSETS i. Non-current assets 5 Fixed assets Tangible assets 7,538.26 7,683.77 Intangible assets - - Capital work-in-progress 1,443.45 1,240.07 Long term loans and advances 295.27 317.03 Other non-current assets 10,972.07 10,713.76 ii. Current assets 6 Inventories 25,319.11 33,165.24 Trade receivables 12,877.62 13,960.24 Cash and cash equivalents 51,959.43 30,586.20 Short term loans and advances 7,605.00 14,727.92 Other current assets 9,961.09 11,050.27 TOTAL 127,971.30 123,444.50 Significant Accounting Policies and Notes to Accounts 16 Notes 1 to 6 from an Integral Part of Balance Sheet For and on behalf of the Board of Directors As per our report of even date For G.R.Kumar & Co. Chartered Accountants Sd/- Sd/- Firm Reg. No.004941S RAKESH MAHAJAN R Adm N K MISHRA, IN (Retd) Director Chairman and Managing Director Sd/- (Finance & Commercial) CA G.R. Kumar (Partner) Sd/- M. No. 52367 INAITULA BAIG Company Secretary New Delhi 13 Jul 2012
42 Hindustan Shipyard Limited Profit & Loss Statement Profit and Loss Statement for the year ended March, 2012 ` in lakhs Sl.No. Particulars Note No. Year ended Year ended 31st March, 2012 31st March, 2011 III. INCOME Turnover (Revenue from Operations) 7 56,403.95 65,899.74 Less: Taxes & Duties (2,966.18) (2,450.16) Net turnover 53,437.77 63,449.58 Other Income 8 4,029.75 2,717.85 Total Income 57,467.52 66,167.43 IV. EXPENSES Materials consumed 9 25,584.81 48,981.26 Sub-contracting and Other Direct Expenses 10 9,907.24 7,978.43 Employee benefits 11 19,990.48 25,748.32 Other expenses 12 2,846.50 2,682.07 Finance costs 13 1,182.42 1,434.64 Depreciation 5 796.68 767.73 Provisions and losses 14 5,633.62 7,189.43 Prior period expenditure (net) 15 521.58 562.78 Transfers (397.47) (427.85) Total expenditure 66,065.86 94,916.81 V. Profit before exceptional & extraordinary items and tax (III-IV) (8,598.34) (28,749.38) VI. Exceptional items - - VII. Profit before extraordinary items and tax (V-VI) (8,598.34) (28,749.38) VIII. Extraordinary items 1. Grant in aid from GoI (FR) - 45,268.00 IX. Profit before tax (VII-VIII) (8,598.34) 16,518.62 X. Taxes 1. Current tax a) Income tax for the year - 4,482.60 b) MAT credit entitlement - (4,482.60) 2. Deferred tax - 11,018.63 XI. Profit / (Loss) for the period (IX+X) (8,598.34) 5,499.99 XII. Earnings per equity share (Basic) (284.72) 182.12 Notes 7 to 15 form an Integral Part of Profit and Loss statement For and on behalf of the Board of Directors As per our report of even date For G.R.Kumar & Co. Chartered Accountants Sd/- Sd/- Firm Reg. No.004941S RAKESH MAHAJAN R Adm N K MISHRA, IN (Retd) Director Chairman and Managing Director Sd/- (Finance & Commercial) CA G.R. Kumar (Partner) Sd/- M. No. 52367 INAITULA BAIG Company Secretary New Delhi 13 Jul 2012
Annual Report 2011-12 43 Notes
NOTES FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2012
` in lakhs
I. EQUITY AND LIABILITIES
Note - 1 As at As at 31st March, 2012 31st March, 2011
SHARE CAPITAL
Authorised
30,40,000 - Equity Shares of `1000 each
(Previous year 30,40,000- Equity Shares of ` 1000 each) 30,400.00 30,400.00
Issued, Subscribed and fully paid-Up
30,19,922 Equity Shares of ` 1,000 each fully paid-up
(Previous year 30,19,922- Equity Shares of ` 1000 each) 30,199.22 30,199.22
Total - Note : 1 30,199.22 30,199.22
Notes: Subscribed and paid-up share capital includes:Equity shareholder holding more than 5% of equity shares along with the number of equity shares held is as given below:
Name of the shareholder As at As at 31st March, 2012 31st March, 2011
Number of shares Number of shares
President of India (100%) 30,19,922 30,19,922
Note - 2 As at As at 31st March, 2012 31st March, 2011
RESERVES AND SURPLUS
Capital Reserve
Balance in Capital reserve 9.50 9.50
Deficit
Opeing Balance (93,010.22) (98,510.21)
Add: Net Profit / (Loss) for the current period (8,598.34) 5,499.99
Closing Balance (101,608.56) (93,010.22)
Total - Note : 2 (101,599.06) (93,000.72)
44 Hindustan Shipyard Limited Notes
Note - 3 As at As at 31st March, 2012 31st March, 2011 NON-CURRENT LIABILITIES ` in lakhs ` in lakhs Long term borrowings Unsecured GoI Loan in perpetuity (Refer Note : 1) 37,221.25 37,221.25 Term Loan from SBI together with Interest accrued and due thereon - 25,546.00
37,221.25 62,767.25 Other long term liabilities Caution Deposits 10.07 1.38 Advances from customers 172.64 380.33 Trade payables (OPF) (Refer Note : 2) 163.72 171.87 Other liabilities (Refer Note : 3) 635.99 645.07
982.42 1,198.65 Long term provisions Provision for employee benefits Gratuity (Refer Note : 4) 9,893.96 9,337.75 Leave encashment (Refer Note : 5) 3,532.74 1,941.25 Other provisions Provision for Income Tax (Refer Note : 6) 4,482.60 4,482.60
17,909.30 15,761.60 Total - Note : 3 56,112.97 79,727.50 Notes:
1 Represents loan received from GoI as “Loan in Perpetuity” upon conversion of Loans taken from GoI and accrued interest upto FY 2009-10 amounting ` 37221.25 Lakhs
2 This amount excludes ` 5139.33 lakhs pertains to claim of Essar Oil Ltd towards Off shore platform works and similar amount to be received from ONGC
3 Represents interest accrued on ONGC loan and is payable on finalisation of arbitration
4 Gratuity of the company is a self administered fund and provision for gratuity excludes deposits amounting ` 923.16 lakhs held with gratuity trust
5 Leave encashment of the company are non funded.
6 Provision for income tax is for the FY 2010-11
Annual Report 2011-12 45 Notes
Note - 4 As at As at 31st March, 2012 31st March, 2011 CURRENT LIABILITIES ` in lakhs ` in lakhs
Short-term borrowings :
Secured loans :
Cash credit accounts in Indian Bank (Refer Note : 1) 10,482.31 9,319.82
Trade payables 16,685.06 16,905.94
Other Current Liabilities
Advances from customers (Refer Note No : 2) 91,156.51 59,467.12
Other liabilities (Refer Note : 3)) 6,419.46 7,556.64
Deposits 285.42 336.61
Temporary overdraft from banks - 611.27
97,861.39 67,971.64
Short term provisions
Provision for employee benefits
Gratuity 2,336.00 2,000.00
Leave encashment 679.00 500.00
Other provisions
Liquidated damages (Refer Note : 4) 5,652.83 584.16
Provision for contingencies - 193.95
Provision for future losses (Refer Note : 5) 8,381.67 8,083.75
Guarantee Repairs 1,179.91 959.24
18,229.41 12,321.10
Total - Note : 4 143,258.17 106,518.50
Notes:
1 Cash credit facility from Indian Bank is secured by hypothecation of Fixed and Current Assets of the company
2 Advance from customers include a sum of `45736 lakhs received from Ministry of Defence, Government of India in Dec 2011; for refurbishment and replacement of machinery and infrastructure for construction of advanced technology war ships. The same has remained unutilised as at year-end.
3 Out of the said amount ` 5313.74 lakhs payable toward wage revision arrears
4 Out of the said amount ` 3610.76 lakhs towards Sagar Ratna Repairs, (ONGC) and ` 799.76 lakhs towards 2 No 50 Ton Tugs (VPT)
5 Provision for future losses computed as per AS-7 “Construction Contracts” issued by ICAI in respect of Ships under construction
46 Hindustan Shipyard Limited Notes
II ASSETS
Note - 5 As at As at 31st March, 2012 31st March, 2011 1) NON-CURRENT ASSETS ` in lakhs ` in lakhs
Fixed Assets :
Gross Block (Tangible) 22,967.22 22,496.99
Depreciation 15,428.96 14,813.22
Net Block- Tangible 7,538.26 7,683.77
Gross Block (In-tangible) 139.82 139.82
Depreciation 139.82 139.82
Net Block- Intangible - -
Capital Works in Progress 1,443.45 1,240.07
8,981.71 8,923.84
Long term Loans and Advances (unsecured)
Deposits with Customs, Port Trust and other Govt. Agencies 295.27 317.03
Income Tax deducted at source 1,884.13 1,627.60
Advance tax 4,577.34 4,575.56
MAT Credit entitlement 4,510.60 4,510.60
11,267.34 11,030.79
Total - Note : 5 20,249.05 19,954.63
Notes : Advance tax and MAT credit entitlement is for the FY 2010-11
Annual Report 2011-12 47 Notes 1.72 1.74 0.02 6.17 0.80 70.53 95.76 14.78 39.55 24.95 As at 247.68 833.74 351.25 126.23 in lakhs 7683.79 6877.15 1240.10 4628.77 ` 31.03.2011 4.43 0.80 28.52 0.02 34.04 1.74 178.52 24.95 139.82 509.39 95.76 the year 6.87 304.36 240.81 5.582.152.04 277.14 2.72 51.48 47.27 64.95 4.02 17.87 year Adjustments 31.03.2012 31.03.2012 27.36 400.18 98.87 57.95 156.18 1330.60 1175.53 18.07 255.44 24.99 21.83 416.12 344.66 For theFor / sales On Up toat As 775.70 216.13 14953.04 7683.79 543.86 27.02 8839.42 4723.78 115.95801.66 185.92 2752.05 15568.78 717.79 7538.26 4.43 47.95 28.52 49.33 34.04 372.82 237.37 178.52 297.49 271.56 139.82 394.29 509.39 Up to 2636.10 1428.83 8322.58 14393.47 14953.04 31.03.2011 1.72 1.72 5.23 35.78 55.50 28.54 203.47 545.17 139.82 342.09 499.05 605.15 3469.84 FIXED ASSETS tments 31.03.2012 4.98 lakhs. during for the year ` Sales /Ad-Sales As on 80.70 Lakhs (net block) for which lease deeds are expired for lands to the extent of 6.2 acres, the extent lands to for expired are deeds which lease Lakhs (net block) for 80.70 ` 7.87 5.46 65.14 3.51 280.43 1.63 164.43 2506.13 Gross BlockGross Depreciation block Net 15.24 760.78 692.33 222.10 23107.04 664.08 52.21 13563.20 1592.98 226.77 22636.81 during jus the year Additions 31.03.2011 1 2 3 45678 91011 Particulars on As However, the respective lease rents are claimed by Visakhapatnam Port Trust and paid by Hindustan Shipyard Ltd. by Hindustan and paid Shipyard by Visakhapatnam Trust claimed are Port rents lease the respective However, Housing Estate, Hos- Housing Estate, Previous yearPrevious 21270.60 Tangible Assets Tangible LandBuildings: landa) On freehold landb) On leasehold sidingsRailway & MachineryPlant & FitoutSlipways warfDrydock 2668.93 basinWet 5.23 Furniture 12951.33 & launchesBoats 1.72 545.17 28.54 vehiclesMotor & Compound wallsRoads & Other equpt.pital of Buildings Electrification 745.54 499.05 Elec. Installations 342.09 35.78 well platformsBerth for 55.50 Building dock 62.73 Intangible Assets 276.92 shipbuilding for Software Tribon Total 203.47 139.82 605.15 3469.84 22636.81 2. of prior period amount includes the year for Depreciation Note: 1. hold lands includes on lease Buildings / structures Note - 5 Note
48 Hindustan Shipyard Limited Notes
Note - 6 As at As at 31st March, 2012 31st March, 2011 CURRENT ASSETS ` in lakhs ` in lakhs Inventories (Refer Note: 1) Steel 2,121.79 4,932.79 Stores & Spares , equipment and other Materials 21,419.98 21,631.58 Timber 56.75 45.09 Materials-in-Transit and under inspection 1,634.87 6,619.82 Steel Cut Pieces on shop floor and Scrap (Refer Note: 2) 361.23 290.21 25,594.62 33,519.49 Less : Provision for : Obsolescence of materials 51.70 130.44 Difference between Bin cards & PSL balances 223.81 223.81 25,319.11 33,165.24 Trade receivables Unsecured Debts outstanding for more than 6 months: Considered good 8,306.61 2,061.67 Considered doubtful 1,722.09 1,531.24 10,028.70 3,592.91 Other debts, considered good 4,571.01 11,898.57 14,599.71 15,491.48 Less: Provision for doubtful debts 1,722.09 1,531.24 12,877.62 13,960.24 Cash and Cash Equivalents Cash on Hand 1.91 1.32 Balances with scheduled banks in: Term and other Deposit accounts 51,843.41 30,442.45 Current accounts 114.11 142.43 51,959.43 30,586.20 Short term loans and Advances Short term loand and advances Employees 48.12 38.88 Suppliers of materials & services 6,633.03 13,975.42 Others 881.28 632.24 Prepaid Expenses 140.16 178.97 7,702.59 14,825.51 Less : Provision for Doubtful Advances 97.59 97.59 7,605.00 14,727.92 Other Current Assets Interest Accrued on term deposits 1,254.61 55.86 Accrued Income (OPF) 146.92 146.92 Accrued Income (Refer Note: 3) 8,559.56 10,847.49 9,961.09 11,050.27 Total - Note : 6 107,722.25 103,489.87 Notes: 1. Inventories are as valued and certified by the management 2. Value of Steel Cut Pieces on shop floor and Scrap is based on technical estimate 3. Accrued Income is in respect of Ship Building, Ship Repairs & Submarine Retrofit activities and it includes income for the previous financial years amounting ` 558 lakhs (Ship Building: ` 145 lakhs and Retrofit: ` 413 lakhs)
Annual Report 2011-12 49 Notes NOTES FORMING PART OF THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED MARCH 31, 2012
Note - 7 Year ended Year ended 31st March, 2012 31st March, 2011 Turnover (Revenue from Operations) ` in lakhs ` in lakhs Sale of products - (Refer Note: 1) Shipbuilding - Contractual Income 21,093.54 24,197.88 - Government subsidy (Refer Note: 2) 4,183.88 4,951.72 Sale of services Repair works 17,892.60 26,661.77 Dry dock hire charges 294.73 109.05 Wet basin hire charges 278.46 345.71 DDSR Other services 699.30 621.41 Submarine Retrofit 11,576.60 8,326.90 Misc. works 7.05 - Other operating revenue Sale of scrap, stores & disposable materials (Net of VAT) (Refer Note: 3) 377.79 685.30
Total - Note : 7 56,403.95 65,899.74 Notes: 1. Income from ship building is recognised as per AS-7 “Construction Contracts” issued by ICAI 2. Company is eligible subsidy @30% on 53K Bulkers under construction for GML 3. Sale of scrap, stores & disposable materials excludes VAT amounting ` 26.44 lakhs (` 30.46 lakhs)
Note - 8 Year ended Year ended 31st March, 2012 31st March, 2011 Other Income Interest from banks & others (Refer Note No: 1) 1,810.46 235.80 Foreign Exchange variation 283.96 229.28 Rent (Net of Service Tax) (Refer Note No: 2) 81.02 90.51 Fines and forfeitures 217.26 362.32 Miscellaneous Receipts 154.80 84.06 Profit on sale of Assets 84.12 100.65 Provisions of earlier years no longer required 1,398.13 1,615.23
Total - Note : 8 4,029.75 2,717.85 Notes: 1. Interest income includes ` 1127..05 lakhs earned on deposits of ` 45736 lakhs for upgradation of infrastructure provided by GoI in December, 2011 2. Rent excludes service tax amounting ` 5.5 lakhs (` 5.61 lakhs)
50 Hindustan Shipyard Limited Notes
Note - 9 Year ended Year ended 31st March, 2012 31st March, 2011 Materials Consumed ` in lakhs ` in lakhs
Steel 3,185.72 4,898.08
Stores & Spares 1,801.10 769.69
Timber 34.19 29.03
Direct Materials, Machinery & Equipment used in
Ship Construction 7,885.35 20,673.55
Shiprepair 5,200.18 15,684.73
Submarine Retrofit 6,228.70 6,520.52
Reduction in value of shipbuilding equipment 1,153.22 -
25,488.46 48,575.60
Add: Stores procurement expenses 96.35 405.66
Total - Note : 9 25,584.81 48,981.26
Note - 10 Year ended Year ended 31st March, 2012 31st March, 2011 Sub-contracts & Off-loaded jobs
Sub contract & off-loaded job expenses in :
Ship Construction 3,073.63 2,636.43
Ship Repairs 3,282.22 2,449.02
Submarine Retrofit 830.72 468.56
Other Direct Expenses in :
Ship Construction (Refer Note-1) 686.88 504.80
Ship Repairs 1,037.20 655.87
Submarine Retrofit 755.10 1,068.80
Builders Risk Insurance in Ship Constuction 241.49 194.95
Total - Note : 10 9,907.24 7,978.43
Notes:
1. Other Direct Expenses in Ship Construction includes ` 150 lakhs provision for Guarantee Repairs
Annual Report 2011-12 51 Notes
Note - 11 Year ended Year ended 31st March, 2012 31st March, 2011 Pay & Benefits to employees ` in lakhs ` in lakhs Salaries, Wages, Allowances etc., 13,375.96 11,081.17 Wage revision arrears 170.41 5,143.33 Contribution to Provident Fund and other funds 1,290.22 1,050.02 Gratuity 2,176.61 6,851.24 Leave Encashment 2,267.94 1,029.53 Expenses on Training, Stipend etc. 71.31 81.57 Employees Welfare Expenses 638.03 511.46 Total - Note : 11 19,990.48 25,748.32 Note - 12 Year ended Year ended 31st March, 2012 31st March, 2011 Other expenses Power and Fuel (Refer Note-1) 644.76 592.06 Water Charges 66.11 48.68 Rates and taxes (including customs duty on scrap sales) 48.25 117.06 Fire and Other Insurance 234.64 170.00 Rent 146.70 100.18 Repairs and Maintenance to : Plant and Machinery 647.58 693.82 Buildings 160.40 150.73 Other Assets 95.69 64.53 Printing and Stationery 2.78 4.90 Local conveyance charges 116.64 92.90 Travelling Expenses 63.77 53.11 Communication expenses 9.01 34.28 Advertisement and Publicity 94.07 49.12 Salaries and other Expenses of Customs Staff 77.69 102.08 Demurrage Charges 152.34 73.32 Directors’ Fees and Expenses: Directors’ Fees 0.03 0.12 Travelling Expenses 20.89 23.09 Auditors’ Remuneration : Statutory Audit 1.57 1.55 Expenses 0.04 0.10 Miscellaneous Expenses 263.54 310.44 Total - Note : 12 2,846.50 2,682.07 Notes: 1. Power & Fuel and water charges are considered as net of recovery Note - 13 Year ended Year ended 31st March, 2012 31st March, 2011 Interest & Finance Charges Interest on : Bank term loans & Cash Credit 964.89 1,056.99 Inter-corporate loans from various Port Trusts - 175.85 Others 22.49 75.19 Bank Charges 195.04 126.61 Total - Note : 13 1,182.42 1,434.64
52 Hindustan Shipyard Limited Notes
Note - 14 Year ended Year ended 31st March, 2012 31st March, 2011 Provisions and Losses ` in lakhs ` in lakhs Provisions made: Obsolescence of Materials 3.75 110.48 Reduction in SR Bills 159.67 94.43 Future losses 297.92 6,564.47 Liquidated Damages 5,025.18 186.23 Contingencies - 193.95 Doubtful Debts 128.71 16.17 Losses: Reductions in SR Bills 15.39 23.34 Stores written off - 0.03 On Sale of Assets 3.00 0.33 Total - Note : 14 5,633.62 7,189.43
Note - 15 Year ended Year ended 31st March, 2012 31st March, 2011 Prior Period Adjustments A Income Materials & Freight 43.27 20.47 Taxes & Duties 14.29 - Miscellaneous 6.63 - 64.19 20.47 B Expenditure SC Direct Expenses 487.35 103.69 RF Direct Expenses 61.53 - GoI Guarantee fee - 69.52 Materials & Freight - 18.13 Interest - 176.06 Taxes & Duties - 138.67 Repairs and Maintenance 12.84 8.88 Rent 3.91 24.23 Depreciation 4.98 7.97 Miscellaneous 15.16 36.10 585.77 583.25 Net Expenditure / (Income) 521.58 562.78
Annual Report 2011-12 53 Notes
Note – 16 Notes Forming Part of the Accounts for the year ended 31st March 2012 A. ACCOUNTING POLICIES 1. ACCOUNTING CONVENTIONS: The financial statements are prepared under the historical cost conventions in accordance with Generally Accepted Accounting Principles in India and provisions of the Companies Act, 1956. Generally, revenues are recognized on accrual basis with provisions made for known losses and expenses. 2. ASSETS: (a) Fixed assets: Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes, incidental expenses relating to cost of acquisition (net of VAT), interest during construction period and the cost of installation/erection as applicable. (b) Intangible assets : Expenditure incurred on software will be capitalized under intangible assets and shall include expenditure on procurement of software, acquisition / development of software and up-gradation / enhancement of existing software resulting in enhancement of economic benefits. However all embedded software without separate value and included in hardware is capitalized along with cost of hardware. Fixed assets, Capital work-in-progress and capital advances are segregated as non-current assets. 3. INVENTORIES: i) Steel, Timber, Spares and other stores are valued at Weighted Average Cost or net realizable value whichever is lower. Obsolescence is provided for on the basis of technical estimate. ii) Direct Materials and Stores items in offshore platform activities are valued at cost or net realizable value whichever is lower under specific identification and FIFO respectively. iii) Cost includes expenses of procurement including all taxes and duties other than VAT. iv) Scrap is valued at estimated realisable value. 4. INCOME: Income is recognised in accounts: A. i) In respect of ships under construction, on the basis of percentage completion method, taking into account the proportion that the contract cost incurred for work performed upto the reporting date bears to the estimated total contract cost for completion. Cost for the above purpose includes value of direct materials including Machinery and other ship borne equipment issued for specific ship, direct labour, direct expenses and general overheads excluding administrative overheads and overheads attributable to idle time. ii) In respect of ships delivered during the year at the balance price including claims for extra works and cost escalation realisable from owners. iii) For the purpose of recognition of profit, weightage shall be given to the following three factors, which shall reach a minimum of 20% individually. a. The proportion that cost incurred to date bears to the estimated total cost of the contract,
54 Hindustan Shipyard Limited Notes
b. Stage completion and c. Revenue received. B. Income from other activities including ship repair and submarine refit activities is accounted for on accrual basis by adopting proportionate completion method. C. Income is inclusive of Excise Duty, Sales Tax and Service Tax and is net of Rebates and other Deductions under the respective contracts. D. Claims in respect of Insurance are accounted for on acceptance basis taking into account the acceptances received within 15 days of the end of the financial year. E. The income in respect of all the activities is captioned as “Turnover”. 5. GOVERNMENT GRANTS: i) Capital grants / subsidy: Capital grants / subsidy relating to specific assets are reduced from the gross values of assets and capital grants for project capital subsidy are credited to capital reserve and retained till the requisite conditions are fulfilled. ii) Revenue grants / subsidy: a) Grant-in-aid received from Government of India for implementation of Voluntary Retirement Scheme is matched with related costs through Profit & Loss Account . Unutilized grants are shown under Current Liabilities. b) Price subsidy received / receivable from Government of India in respect of ships is considered as income on the basis of percentage completion of the respective ships. c) All other revenue grants are credited to Profit & Loss Account. 6. EXCISE DUTY: Excise Duty wherever applicable is accounted for as and when the products are cleared from the yard. 7. DEPRECIATION: Depreciation is provided for under straight-line method in accordance with schedule XIV of the Companies Act, 1956 as amended, in respect of assets capitalised on or after 01-04-1988. In respect of assets capitalised prior to 01-04-1988 depreciation is provided under straight-line method at the rates worked out adopting the management’s estimates of useful lives of the respective assets as under: Name of the Asset Life 1. Buildings a. Class I Factory Buildings 33 years b. Class II Factory Buildings 20 years c. Class I Non-Factory buildings 58 years 2. Plant and Machinery 19 years 3. Furniture and Fixtures 29 years 4. Motor Vehicles 7 years 5. Dry Dock/Wet Dock and Slipways 50 years 6. Boats and Launches 20 years Depreciation on additions/disposals made during the year is charged prorata by grouping them on quarterly basis. Intangible assets will be amortized over a period of 5 years.
Annual Report 2011-12 55 Notes
8. BORROWING COSTS:
a) Borrowing Costs relating to the acquisition/construction of qualifying assets are capitalised until the time all the substantial activities necessary to prepare the qualifying assets for their intended use are complete.
b) A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.
c) All other borrowing costs are charged to revenue.
9. EMPLOYEE BENEFITS:
(i) Defined Contribution Plan
Employee Benefits in the form of Employee Pension Fund is considered as Defined Contribution plan and the contributions are charged to the Profit & Loss Account of the year when the contributions to the said fund are due.
(ii) Defined Benefit Plan
Retirement Benefit in the form of Gratuity, is considered as Defined Benefit Obligation and is provided for on the basis of an actuarial valuation using the projected unit credit method as at the date of Balance Sheet. Employee Benefit in the form of Employee Provident Fund is considered as Defined Benefit plan and the contributions are charged to the Profit & Loss Account of the year when the contributions to the said fund are due.
(iii) Other Long Term Benefits
Long-Term Compensated Absences are provided on the basis of an actuarial valuation using the Projected Unit Credit Method as at the date of Balance Sheet.
Actuarial gain/losses, if any, are immediately recognized in the Profit & Loss Account.
10. EMPLOYEE SEPARATION COSTS:
Compensation to Employees who have opted for Retirement under the Voluntary Retirement Scheme of the Company is charged to the Profit and Loss account in the year of exercise of option, net of grant in aid received / receivable in the year of payment.
11. PROVISION FOR FUTURE LOSSES:
In the case of Ship Building activities where current estimates of total contract cost exceeds the expected realisable value, provision is fully made for such anticipated loss in accordance with AS 7 issued by the Institute of Chartered Accountants of India.
12. PROVISION FOR SUNDRY DEBTORS:
Provision is made for all debts considered doubtful of recovery having regard to the following consideration–
56 Hindustan Shipyard Limited Notes
a) Time barred debts from the Government / Government departments / Government companies are generally not treated as doubtful debts.
b) Provision for bad and doubtful debts is generally made for debts outstanding for more than three years, excepting those which are considered realizable based on a case to case basis.
13. FOREIGN EXCHANGE TRANSACTIONS:
Assets and liabilities in foreign currencies are translated at rates of exchange prevailing as on the Balance Sheet date. Gains/losses arising out of fluctuations in exchange rates both on settlement and on conversion of liabilities are adjusted to revenue.
14. NORMAL OPERATING CYCLE:
(i) “Normal operating cycle is project-wise as the time period from the date of effectiveness of the contract to the date of completion of the project.
(ii) “Completion of Project” is till the date that all the issues between the parties are mutually settled by them other than resorting to legal means.
15. CAPITAL EXPENDITURE FUNDED THROUGH NAVAL SHIP PROJECTS:
The Capital Expenditure funded through Naval Ship Projects is netted-off from the corresponding fixed assets. The net amount so arrived at is shown as the carrying amount of such fixed assets.
Any remaining balance(s) excess/shortfall is shown as non-current asset/liability as the case may be.”
16. MISCELLANEOUS:
(i) Loose tools:
Loose tools are charged to revenue on issue of the same from stores
(ii) Liquidated damages:
Provision for liquidated damages is made in the accounts as per the contractual provision / proportionate liability basis keeping in view the delay caused by the factors beyond the control of company.
(iii) Guarantee repairs:
Provision for liability for guarantee repairs made in the accounts at the time of delivery on the basis of estimation.
(iv) DISCLOSURE OF EXPENDITURE:
All items of expenditure are stated under nominal heads at gross figures and the aggregate amount allocated/ transferred to other heads on functional basis is shown separately except direct labour.
Annual Report 2011-12 57 Notes B. NOTES ON ACCOUNTS (` in lakhs) 2011-12 2010-11 1. Contingent liabilities 1.1. Irrevocable letters of credit outstanding 6834.69 4639.71 1.2. Counter guarantees given to banks for guarantees issued on behalf of 18710.30 12996.40 the company 1.3. Estimated amount of contracts remaining to be executed on capital -- -- account and not provided for 1.4. Demands raised against the company by various authorities, contested at various courts, appellate authorities etc and not provided for: 1.4.1. Property tax on commercial complex for the years from 1984-85 to 13.39 13.39 1994-95. 1.4.2. Penal interest on belated remittances of Provident Fund contributions 109.78 109.78 during the period from May 2002 to Feb., 2005, contested u/s 7(i) of EPF & MP Act, 1952. HSL had approached Hon’ble High Court of Andhra Pradesh after dismissal of appeal by PF Appellate Tribunal. The Hon’ble High Court has issued stay orders on PF Appellate Tribunal order subject deposit of a sum of ` 35.00 lakhs by the company. Accordingly, HSL had deposited the said amount. Presently, the case is pending in Hon’ble High Court of Andhra Pradesh. 1.4.3. (a) ESI dues in respect of ‘C’ series workmen for the period from 74.46 70.48 1-4-1998 to 30-9-2000 together with interest thereon (` 6.64 lakhs paid under protest grouped under deposit recoverable) (b) ESI dues in respect of temporary workmen for the period from April, 180.24 180.24 1998 to Oct., 1999, contractors contribution for the period from Apr., 1985 to March, 1993. 1.4.4. Service tax demand in respect of INS Sindhukeerti 2650.50 2081.30 1.4.5. Demands of various suppliers of goods and services 397.23 457.00 1.4.6. Non Agricultural Land Assessment tax demands for the year 2000-01 4.54 4.54 1.4.7. Demands in respect of service matters of employees having financial 1381.92 1381.92 impact. Total (1.4.) 4812.06 4298.65 1.5. Claims against the company, which are under arbitration and not provided for: 1.5.1. Counter –Claims of ONGC towards liquidated damages, penal interest 8638.00 8638.00 and interest on interest in respect of construction of well platforms (net of provision). 1.5.2. Claims of Essar Oil Limited (EOL) towards OPF works (net of provision 10733.43 9196.40 made of ` 4370.33 lakhs and counter claim of HSL on ONGC of ` 769 lakhs). 1.5.3. a) On rejection of it’s claims towards L.D. and other claims by HSL, 12366.00 11443.00 M/s Good Earth Maritime Ltd., (G.M.L.) invoked the arbitration clause for the vessel No. VC 11115, VC 11116 and VC 11117 and the same is under arbitration.
58 Hindustan Shipyard Limited Notes
2011-12 2010-11 b) In respect of Vessel No. VC 11118, VC 11136, VC 11137 and VC 11138 which were delivered and VC 11139 to VC 11141 which are under construction, no provision towards of LD is made, since the same is not applicable as per Contracts. 1.5.4. No provision has been made in respect of Liquidated Damages for -- 242.78 vessels INS Sandhayak & INS Kumbhir in the financial year 2010-11 which are undergoing refits since HSL sought for extension of time for completion of refit works and the same is under consideration by Indian Navy. Necessary provision made for LD in the year 2011-12. Total (1.5) 31737.43 29520.18 In respect of items mentioned under 1.4 and 1.5 above, the Company has been advised by the Counsel that said demands and claims are not sustainable in law. 2. Contingent Assets: 2.1. Recognition of income (net of provision) in earlier years towards mark- 669.39 669.39 up on materials procured and works executed in respect of offshore platforms for ONGC, pending finalization of arbitration.
2.2. Recognition of income in earlier years towards escalation and extra 129.15 129.15 jobs for VC 1120, pending finalization of arbitration award.
4. As per Accounting Standard 15 ’Employees Benefits’, the disclosure of Employee Benefits as defined in the Accounts Standard are given below: Defined Contribution Plan Contribution to Defined Contribution plan, recognized as expense for the year are as under: (` in lakhs) 2011-12 2010-11 Employer’s Contribution to Pension Fund 167.76 186.97
Defined Benefit Plan
The employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.
Annual Report 2011-12 59 Notes
I. Reconciliation of opening and closing balances of Defined Benefit obligation (` in Lakhs)
Details Gratuity Earned Leave Sick Leave (Funded) Encashment (Unfunded) (Unfunded) Defined Benefit obligation at beginning of the year. - Current Year. 12187.17 1828.77 612.48 (Previous year) 6009.29 1307.91 470.61 Interest Cost - Current Year 923.60 126.40 - (Previous year) 451.56 89.96 - Current Service Costs - Current Year 263.75 397.29 168.22 (Previous year) 572.96 211.76 141.87 Benefits Paid - Current Year (1284.40) (497.45) - (Previous year) (729.55) (366.80) - Actuarial loss/(gain) on obligation - Current Year 1063.00 1576.03 - (Previous year) 997.54 585.94 - Defined Benefit obligation at year end - Current Year 13153.12 3431.04 780.70 (Previous year) 12187.17 1828.77 612.48 II. Reconciliation of opening and closing balances of fair value of plan assets (` in lakhs) Details 2011-12 2010-11 Fair value of plan assets at beginning of the period. 849.42 793.23 Expected return on plan assets 73.47 67.42 Contribution 1284.40 729.55 Benefits paid (1284.40) (729.55) Actuarial (loss)/gain on obligation (balancing figure) 0.28 (11.23) Fair value of Plan Assets as at the end of the period 923.17 849.42
III. Reconciliation of fair value of assets and obligations as at 31/03/2012 (` in lakhs) Gratuity Leave Sick Leave Encashment (Unfunded) (Unfunded) Fair value of plan assets - Current Year 923.17 - - (Previous year) 849.42 - - Present value of obligation - Current Year 13153.12 3431.04 780.70 (Previous year) 12187.17 1828.77 612.48 Amount recognized in Balance Sheet - Current Year 12229.96 3431.04 780.70 (Previous year) 11337.75 1828.77 612.48
60 Hindustan Shipyard Limited Notes
IV. Expenses recognized during the year (in the statement of Profit & Loss Account) (` in lakhs)
Description Gratuity Leave Sick (Funded) Encashment Leave (unfunded) (Unfunded) Current Service Cost - Current Year 263.75 397.29 168.22 (Previous year) 572.96 211.76 141.87 Interest Cost - Current Year 923.60 126.40 - (Previous year) 451.56 89.96 - Expected return on plan assets - Current Year 73.47 - - (Previous year) 67.42 - - Actuarial (gain)/loss - Current Year 1063.00 1576.03 - (Previous year) 1008.77 585.94 - Expenses recognized in the statement of P&L a/c - Current Year 2176.61 2099.77 168.22 (Previous year) 6851.24 887.66 141.87
V. Investment Details (Percentage invested)
Description Gratuity as on 31.03.12 Gratuity as on 31.03.11 GoI Securities - - Special Deposit Scheme 14 15 Others (T.D.R.s) 86 85 Total : 100 100 VI. Principal Actuarial Assumptions Gratuity (Funded)(%) Leave Encashment (Unfunded)(%) 31.03.2011 31.03.2012 31.03.2011 31.03.2012 Discount Rate 8.00 8.50 8.00 8.50 Salary escalation rate 11.00 6.00 11.00 6.00 Attrition rate 1.00 1.00 1.00 1.00 Expected rate of return on plan assets 8.65 9.00 --
Salary escalation by taking into account inflation, seniority, promotion and other factors. Attrition rate by reference to past experience and expected future experience and includes all types of withdrawals other than death but including those due to disability.
Discount rate has been determined by reference to market yields on the Balance Sheet date on Govt. Bonds of Term consistent with estimated term of the obligations.
As per the enterprise’s accounting policy actuarial gains and losses are recognized immediately during the same year itself.
Annual Report 2011-12 61 Notes
The fact that Provident Fund element is also to be included while computing relevant salary for encashment of leave has been taken into account.
The above information is certified by the Actuary. 2011-12 2010-11 Employer’s Contribution to Provident Fund (` in lakhs) 1122.46 863.68
The Company’s Provident Fund is exempted under Section 17 of Employees’ Provident Fund Act, 1952. The conditions for grant of exemption stipulate the employer shall make good deficiency, if any, in the interest rate declared by the Trust vis-a-vis statutory rate. The Guidance issued by the Accounting Standard Board (ASB) on implementing AS-15. Employee Benefits (revised 2005) states that Provident Funds set up by employers, which requires interest shortfall to be met by the Employer needs to be treated as Defined Benefit Plan. The fund does not have any deficit or interest shortfall. In regard to any future obligation arising due to interest shortfall (i.e., Government interest to be paid on Provident Fund Scheme exceeds rate of interest earned on Investments) pending the issuance of guidance note from the Actuarial Society of India, the Company’s Actuary has expressed his inability to reliably measure the same.
62 Hindustan Shipyard Limited Notes
5. SEGMENT REPORT
The company operates in Shipbuilding, Ship repair and Sub-marine Retrofit business segments. Information in respect of the said segments as required by AS 17, issued by Institute of Chartered Accountants of India, is given as under
` in lakhs Particulars Ship Ship Retrofit Un-allocated Total building repairs Segment Income: Sales 23,817.39 19,083.54 11,576.60 - 54,477.53 Taxes collected 1,467.08 81.55 - - 1,548.63 Other operating income (scrap sales) 191.48 186.31 - - 377.79 Turnover / Revenue from operations 25,475.95 19,351.40 11,576.60 - 56,403.95 Other Income 752.64 1,051.73 9.10 2,216.28 4,029.75 Total Income 26,228.59 20,403.13 11,585.70 2,216.28 60,433.70 Segment Expenditure: Materials & Direct Expenses incl. taxes 18,477.95 11,060.32 8,487.78 70.60 38,096.65 Direct Labour 2,270.55 468.20 643.15 - 3,381.90 Total Segment expenditure 20,748.50 11,528.52 9,130.93 70.60 41,478.55 Segment Result 5,480.09 8,874.61 2,454.77 2,145.68 18,955.15 Overheads 10,174.38 2,960.54 2,993.13 5,270.05 21,398.10 Provisions and Adjustments 1,687.70 4,401.73 62.78 3.18 6,155.39 Net Segment Result (6,381.99) 1,512.34 (601.14) (3,127.55) (8,598.34) MAT for the year - - MAT Credit entitlement - - Deferred Tax - - Total Result (6,381.99) 1,512.34 (601.14) (3,127.55) (8,598.34) Other information Segment Assets 28,420.98 21,228.10 18,453.66 65,007.78 133,110.52 Segment Liabilities 59,526.54 33,751.27 31,938.31 109,493.47 234,709.58 Capital Expenditure - - - 692.33 692.33 Depreciation 589.96 49.90 156.82 - 796.68 Non-cash expenditure other than Dep. - - - - -
Annual Report 2011-12 63 Notes
2011-12 2010-11 6. Information in respect of related parties in terms of AS 18, issued by the Institute of Chartered Accountants of India are: a) Related parties: Key Management Personnel: i) RAdm NK Mishra, NM, IN (Retd), Chairman & Managing Director from 1st Aug, 2011 ii) Rear Adml. Chandra Sekhar, IN (Retd), Chairman & Managing Director of M/s GRSE Ltd., Kolkata has held the post of Chairman & Managing Director of company as additional charge from 1st Jan, 2011 to 31st July, 2011 iii) Shri. Rakesh Mahajan, Director (Finance & Commercial) iv) Cmde KS Subramanian, NM, IN (Retd), Director (Shipbuilding) from 4th June, 2011 v) Cmde KLN Prasad, IN (Retd), Director (Corporate Planning & Personnel) from 19th Dec, 2011 b) Details of transactions carried out with the above stated related parties: Remuneration paid during the year (` In lakhs) 46.36 27.21 7. a) Net profit/(Loss) as per profit and loss account (` In lakhs) (8598.34) 5499.99 b) Weighted average number of equity shares used as Denominator 3019922 3019922 for calculating EPS c) Earnings per share: Profit/(Loss) – Basic in ` (285) 182 8. As per technical evaluation, there is no impairment in the carrying cost -- -- of cash generating units of the company in terms of Accounting Standard (AS 28), issued by the Institute of Chartered Accountants of India. 9. The estimated cost of completion of vessels under construction has 113170 124876 been revised to ` 113170 lakhs as at 31.3.2012 from ` 124876 lakhs as at 31.3.2011.
10. Materials Consumed
Description Unit 2011-12 201011 Qty Value Qty Value ` in lakhs ` in lakhs Steel M.T 9698 3197.65 15553 4898.08 Pipes Meters 3703 11.60 13000 33.45 Paints Litres 38400 51.02 140082 250.19 Pipe Fittings and others Nos. 12236 27.72 38010 134.89 Ship Machinery and Equipt. 7885.35 20673.55 Ship Repair Materials 5200.18 15684.73 Retrofit Materials 6228.70 6520.52 Others 2886.24 380.19 Total 25488.46 48575.60
64 Hindustan Shipyard Limited Notes
Break up of Materials Consumed: ` in lakhs 2011-12 2010-11 i) Value of all Imported Materials including components and spare 22216.99 43159.81 parts consumed during the year ii) Value of all Indigenous Materials including components and spare 3548.15 5415.79 parts consumed during the year iii) Percentage of item (i) to total consumption 86 89 iv) Percentage of item(ii) to total consumption 14 11
11. Expenditure and Earnings in Foreign Currency ` In lakhs 2011-12 2010-11 1.1 i) Royalty, Know-how and Professional Consultancy fees -- -- ii) Travelling Expenses 4.45 -- iii) Others 249.83 586.69 1.2 CIF value of imported materials, components & spare parts and capital 19222.55 29888.91 goods. 2 Earnings in Foreign Currency from ship repair activity 337.85 11640.90 12. Disclosure of information in respect of Ships under construction as per Accounting Standard-7 “Construction Contracts” ` In lakhs
Particulars / Nature of Vessel 5OT TUGS IPV’s 53K BULKERS 50T TUGS 50T TUGS Vessel No: 11162-64 11154-58 11138-41 11160-61 11173-74 Owner NAVY ICG GEML VPT KPT 1 Contract Revenue Recognized up to 31st March, 2012 727.79 12619.62 36381.41 7169.21 30.79 2 Contract Expenses Recognized 777.46 27655.63 50080.28 4390.96 30.79 3 Recognized Profits / (Losses) (49.66) (10013.07) (10659.27) 2778.59 - 4 Expected Losses Recognized (870.15) (1295.12) (7369.62) - - 5 Total Recognized Profits / Losses (919.81) (11308.19) (18028.88) 3010.41 774.58 6 Advances Received 3668.45 13146.65 32690.69 7198.24 2735.88 7 Costs Relating to Future Activity 14278.50 3836.97 35354.55 308.34 7927.38 8 Progressive Billing 3668.45 13146.65 32690.69 7198.24 2735.88 9 Gross Amount due from Customers 15479.07 21952.15 67405.94 7997.60 8732.76 10 Gross Amount due to Customers ------
Annual Report 2011-12 65 Notes
13. Details of Remuneration to Chairman & Managing Director and other whole-time Directors: ` in lakhs S.No Particulars 2011-12 2010-11 i. Salary and Allowances 36.82 20.84 ii. Contribution to Provident Fund & Group Gratuity Scheme. 6.42 3.76 iii.. Reimbursement of Entertainment Expenses 2.77 2.49 iv. Reimbursement of Medical Expenses 0.09 0.06 v. Value of Perquisite in respect of use of car (as per I.T. rules) 0.26 0.06 Total 46.36 27.21
14. Impact due to change in accounting policies: a) Due to change in accounting policy in respect of revenue recognition of shipbuilding, the turnover has been increased by ` 2970.64 lakhs and increase in material consumption by `3006.97 lakhs thereby loss for the current year is increased by ` 36.33 lakhs. b) Due to change in accounting policy in allocating depreciation in the cost of ship construction for revenue recognition, the turnover has decreased by 9.88 lakhs and loss on inventory cost of direct materials decreased by `82.17 lakhs and increase in provision for future losses by `733.49 lakhs and thereby increase in loss by `825.54 lakhs. c) In the current year HSL has included new accounting policies in respect of intangible assets, depreciation thereon, capital expenditure funded by naval projects, normal operating cycle and miscellaneous policies. These new additions have no financial impact on the accounts of the company. 15. a) Names of SSI units, where payments are outstanding for more than 30 days could not be given in the absence of separate registration for the said SSI units with the company. b) In the absence of registration by Micro and Small Scale industries the information pertaining to these suppliers / service providers could not be furnished. 16. The reconciliation of balances as per price stores ledger and Bin Cards is a continuous process 17. Certain Advances and Provisional Liabilities for Purchases remain unadjusted, pending link up between the same. 18. Balances of Debtors / Creditors are subject to confirmation / reconciliation. 19. Previous year’s figures have been regrouped / rearranged wherever necessary.
For and on behalf of the Board of Directors In terms of our report of even Date attached For G.R.Kumar & Co. Chartered Accountants Sd/- Sd/- Firm Reg. No.004941S RAKESH MAHAJAN R Adm N K MISHRA, IN (Retd) Director Chairman and Managing Director Sd/- (Finance & Commercial) CA G.R. Kumar (Partner) Sd/- M. No. 52367 INAITULA BAIG Company Secretary New Delhi 13 Jul 2012
66 Hindustan Shipyard Limited Cash Flow Statement CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2012 ` in lakhs Particulars Year ended Year ended 31st March, 2012 31st March, 2011 A. Cash flow from operating activities: Net Profit/(loss) before Extraordinary & Prior period items (8,076.76) (28,186.60) Adjustments for: Depreciation 801.66 767.73 Interest paid 1,182.42 1,434.64 Interest received (1,810.46) (235.80) Loss/(profit) on sale of fixed assets (81.12) (100.32) Operating Cash flow before working capital changes, Extraordinary & Prior Period items (7,984.26) (26,320.35) Prior Period items: Net Expenditure 521.58 562.78 Operating Cashflow before working capital changes & after Extraordinary & Prior Period items (8,505.84) (26,883.13) Adjustments for working capital changes: Inventories 7,846.13 14,724.53 Trade and other receivables 9,058.17 (19,577.01) Trade and other payables 37,508.65 10,624.55 Cash generated from operation (A) 45,907.11 (21,111.06) B. Cashflow from Investing acitivities: Purchase of fixed assets (692.33) (1,585.01) Capital Work-in-progress (203.37) 6.98 Sale of fixed assets 117.30 110.96 Interest received 1,810.46 235.80 Net Cash from investing operation (B) 1,032.06 (1,231.28) C. Cashflow from financing activities: Proceeds from Share Capital - - Proceeds from Borrowings from GOI & Banks (24,383.51) 3,063.61 Grant in aid from GoI - 45,268.00 Interest paid (1,182.42) (1,434.64) Net Cash from financing operation (C) (25,565.93) 46,896.97 D. Net Increase in Cash & Cash Equivalent (A)+(B)+(C) 21,373.24 24,554.63 Cash and cash equivalent at the beginning of the year 30,586.19 6,031.56 Cash and cash equivalent at the end of the year 51,959.43 30,586.19 For and on behalf of the Board of Directors As per our report of even date For G.R.Kumar & Co. Chartered Accountants Sd/- Sd/- Firm Reg. No.004941S RAKESH MAHAJAN R Adm N K MISHRA, IN (Retd) Director Chairman and Managing Director Sd/- (Finance & Commercial) CA G.R. Kumar (Partner) Sd/- M. No. 52367 INAITULA BAIG Company Secretary New Delhi 13 Jul 2012
Annual Report 2011-12 67 Social Overheads
SCHEDULE OF NET EXPENDITURE ON TOWNSHIP, RESIDENTIAL QUARTERS AND OTHER SOCIAL OVERHEADS FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2012 (` in lakhs)
Description 2011-12 2010-11 Details Details Total Details Details Total Note - 17 EXPENDITURE ON TOWNSHIP AND RESIDENTIAL QUARTERS Administration & Maintenance: Salaries, Wages & Other Benefits 341.00 260.41 Housing Estate Site Rent 14.13 14.13 Property Tax on Residential Buildings 0.81 2.09 Electricity and Water Charges 202.99 137.73 Repairs and Maintenance 61.43 65.45 Colony Security 53.92 54.16 Miscellaneous Expenditure 5.14 679.41 1.98 535.95 Depreciation 10.68 11.16 690.09 547.11 Less: Income-Rent 90.51 90.51 Electricity and Water Charges 99.30 189.09 500.29 99.30 189.80 357.30 Expenditure on Social Overheads: Schools and Educational Facilities 35.90 47.25 Less: Educational Grant -35.90 0.00 -43.03 4.22 On Medical facilities 710.62 559.37 On Subsidised Canteen 136.20 110.05 On Subsidised lunch for Officers, Staff and Workmen 186.62 322.82 198.54 308.58 On Subsidised transport : Boats and launches 57.80 57.80 46.44 On Social & Cultural Activities 0.53 1091.77 0.56 919.18 1592.05 1276.48 Expenditure on Public Relations and Publicity: Salaries 12.50 10.34 Publicity 17.30 1.44 29.80 11.78 NOTE 1. Interest on capital outlay on Township and Residential quarters and for providing other Social Amenities (original cost of `562.12 lakhs written down value ` 158.91 lakhs as on 31.03.2012) has not been taken into account since this has been finalised out of Equity Share Capital except for an amount of ` 0.45 lakhs out of grant of Andhra Pradesh in respect of Gandhigram High School. 2. The figures of Township Expenditure and Income have been collected only to the extent practicable from the accounts of the company. The expenditure has been in the individual primary heads in the Profit and Loss Account. 3. Previous year’s figures have been recast wherever necessary. For and on behalf of the Board of Directors Sd/- Sd/- RAKESH MAHAJAN R Adm N K MISHRA, IN (Retd) Director Chairman and Managing Director (Finance & Commercial) Sd/- INAITULA BAIG Company Secretary New Delhi 13 Jul 2012
68 Hindustan Shipyard Limited Social Overheads 1.72 0.97 0.96 0.33 1.41 As on 164.21 180.75 169.60 in lakhs) ` 31.03.2011 ( Year Adjustment 31.03.2012 31.03.2012 0.000.29 0.000.00 0.000.03 0.000.00 0.00 1.72 25.64 0.00 17.45 0.00 0.67 3.16 0.96 19.83 0.29 1.41 For theFor On sales/ Uptoon As 10.35 0.00 337.13 153.86 11.16 0.00 392.54 169.58 10.68 0.00 403.21 158.91 0.00 3.12 Upto 25.34 17.45 19.83 326.78 392.53 381.38 31.03.2011 For and on behalf of the Board of Directors and on behalf of the Board For OCK DEPRECIATION NET BLOCK year Adjustment 31.03.2012 (Finance & Commercial) year during the the year for 0.000.000.00 0.000.00 0.000.00 0.00 1.72 490.99 0.00 0.00 26.31 0.00 18.41 0.00 0.00 3.45 21.24 0.00 562.12 0.00 0.00 562.12 Additions Sales/ on As during the As on 562.12 31.03.2011 CAPITAL OUTLAY ON TOWNSHIP RESIDENTIAL QUARTERS FOR PROVIDING SOCIAL AMENITIES FOR PROVIDING RESIDENTIAL QUARTERS ON TOWNSHIP OUTLAY CAPITAL Sd/- Sd/- Sd/- INAITULA BAIG RAKESH MAHAJAN R Adm N K MISHRA, IN (Retd) Company SecretaryCompany Director Chairman and Managing Director PARTICULARSLandBuildings & compound walls etc.Roads Electrical Installations 26.31 EquipmentHospital BL GROSS VehiclesMotor 18.41 490.99 1.72 Total 3.45 21.24 Previous YearPrevious 562.12 New Delhi New 13 Sep 2012
Annual Report 2011-12 69 10 Years at a Glance in crores) ` ( 7 2007-08 2008-09 2009-10 2010-11 2011-12 69 524.72 559.1561 593.83 617.84 627.67 692.06 372.21 677.78 679.71 978.62 70.47 89.78 68.24 96.40 93.20 104.82 63.61 37.76 37.03 32.72 123.21 182.29 106.17 114.02 129.61 95.88 157.61 179.09 149.31 281.01 301.99 301.99 301.99 301.99 89.80 81.91 71.70 33.08 63.54 110.50 99.61 4) (1012.75) (706.82) (566.31) (685.34) (683.01) (628.02) (714.00) 6.08 6.08 6.08 6.36 6.36 6.36 11.99 9.83 2.45 2.78 3.10 3.54 3.08 3.30 3.17 2.95 FINANCIAL POSITION AND PERFORMANCE OF THE COMPANY 7.36 23.95 66.82 135.36 164.67 126.72 118.83 117.64 147.28 76.05 2002-03 2003-04 2004-05 2005-06 2006-0 (1103.33) (1155.36) (1163.25) (1157.06) (856.13) (847.32) (987.33) (985.00) (930.01) (1015.99) ts 0.00 0.00 0.00 0.00 113.22 105.67 113.10 123.99 107.14 109.72 Reserves and Surplus Reserves Liabilities Non-current borrowingsLong term Other long trm liabilities provisionsLong term Liabilities Current barrowingsShort term payablesTrade 936.44 l iabilitiesOther current 6.08 provisionsShort term 943.94 30.42 6.08 981.44 0.00 43.02 190.91 981.69 49.19 33.61 6.26 166.18 39.67 610. 146.10 61.92 36.22 6.44 43.63 495.37 200.33 20.90 6.83 686. 113.66 24.32 128.94 157.40 134.87 219.03 169.06 166.85 EQUITY & LIABILITIES EQUITY funds Shareholders’ CapitalShare 121.81 129.31TotalASSETS 136.81 assets: Non-current - Tangible assets Fixed 144.31 - Intangible in progress work - Capital loans and advancesLong term 0.64 48.72 2.24 265.13 0.69 0.00 44.63 237.57 2.93 assetsOther current 0.20 0.00 41.94Total 374.52 WorthNet 0.52 0.00 39.31 658.83 44.53 965.75 4.01 0.00 4.05 981.57 53.40 6.23 0.00 1.85 (981.52) 941.98 63.71 265.13 (1026.05) 5.16 0.87 2.58 1038.99 (1026.4 237.57 68.77 1234.43 12.47 0.17 374.52 1279.71 76.84 12.40 0.00 658.83 75.38 14.44 965.75 0 981.57 941.98 0 1038.99 1234.44 1279.71 Current Assets Current Inventories receivablesTrade equivalents & cash Cash loans and advancesShort term 1 60.46 78.57 53.09 36.75 80.55 46.22 27.52 140.65 92.36 184.19 51.49 155.38 281.70 140.55 132.06 211.84 148.05 253.55 115.47 117.23 372.15 60.31 110.07 478.90 305.86 139.60 331.65 519.59 128.78 253.19 Other non-current asse Other non-current and Surplus up Capital+Reserves = Paid Worth *Net BALANCE SHEET: BALANCE
70 Hindustan Shipyard Limited 10 Years at a Glance in crores) ` ( 7 2007-08 2008-09 2009-10 2010-11 2011-12 02 108.46 144.13 266.04 277.38 193.51 7 139.94 159.95 202.15 194.17 253.61 291.49 254.76 0.00 0.00 41.31 0.080.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (44.83) 0.00 39.65 43.6014.23 80.16 15.50 89.88 19.12 62.10 25.91 94.39 31.03 79.78 27.85 99.07 26.82 28.47 (0.86) (1.92) (387.40) (7.66) 54.44 3.46 5.63 5.21 0.00 0.00 0.00 78.27 5.49 6.85 (31.86) 44.83 0.00 19.28 8.48 14.03 45.15 8.74 14.07 18.67 71.89 56.34 (52.03) (7.89) 6.19 300.93 11.33 (140.01) 2.32 55.00 (85.98) FINANCIAL POSITION AND PERFORMANCE OF THE COMPANY 0.00 0.00 0.00 0.00 (109.01) 6.66 (3.57) (4.26) 110.19 0.00 2.46 (52.03) (7.89) 6.19 270.19 23.48 (136.73) (33.80) 165.19 (85.98) 2002-03 2003-04 2004-05 2005-06 2006-0 (1103.43) (1155.46) (1163.35) (1157.16) (856.23) (847.42) (987.43) (985.10) (930.10) (1016.08) ems 8.63 (46.52) 1.87 15.19 308.95 73.81 (79.31) 25.07 (265.46) (66.19) Ship repairsRetrofitWork-in-Progress IncomeOther 68.68 & BenefitsPay 4.43 and DutiesTaxes 42.65Other Expenses 68.80 9.24 and LossesProvisions 0.55Prior period Adjustments 135.12 10.48 itemsExtraordinary 7.50 (10.07)Transfers 87.90 10.71 72.42 21.75 28.29 3.20 16.58 0.88 93. 15.74 12.11 77.78 47.01 45.60 2.78 0.00 74.66 12.38 1.35 77.88 26.54 41.36 4.29 73.91 0.00 82.67 (9.28) 84.26 64.32 enetitlement credit MAT / liability (asset) Tax 57.52 8.59Deferred (10.53) 92.64 (2.85) 38.14 / (Loss) Profit Net 99.31 13.49 (48.29) (11.64) 80.91 53.60 0.00 83.27 20.37 (3.32) 126.93 0.00 34.03 115.77 0.00 28.68 129.89 (3.84) 2.46 40.30 257.48 23.25 (4.45) 199.90 24.50 (4.32) (5.12) 29.66 (4.28) (3.97) ShipbuildingTotalExpenditure: Materials 39.67 ExpensesDirect 39.87 79.4 164.67 17.38 42.75Total 127.20 interest, / (Loss) before Profit 24.97 38.03 ordinary it & Extra Depreciation 236.98 GoI from Grant 103.08Depreciation 318.88Interest tax / (Loss) before Profit 144.54 399.77 190.19 510.14 156.04 222.55 498.28 0.00 & Loss AppropriationProfit 173.72 / (Loss) Profit Cumulative 264.66 5.12 662.03 0.00 235.11 344.57 1.05 637.88 4.32 0.00 303.69 0.00 441.52 604.34 1.19 4.15 0.00 90.82 255.85 0.00 5.61 436.33 4.07 0.00 0.00 577.59 4.93 4.06 0.00 0.00 636.96 34.70 5.82 0.00 903.34 0.00 44.51 670.53 6.93 2.52 0.00 50.49 6.46 0.00 452.68 52.41 7.68 0.00 0.00 14.35 7.97 0.00 11.82 0.00 Income Tax 0.00 PROFIT AND LOSS ACCOUNT: AND LOSS PROFIT Income:
Annual Report 2011-12 71 Ships Built Delivery /Floating 2-09-1954 29-03-19567-09-1954 25-11-1956 31-12-1955 25-09-1957 23-05-1947 18-12-1948 19-05-1949 19-10-1953 18-08-1954 18-03-1958 10-08-1955 25-07-1956 04-12-1957 22-06-1946 14-03-194822-08-1946 26-10-1948 20-11-1948 07-04-1949 ssel) eight of Laying Date of Date of Date Tonnes Keel Launching 8.087 26-12-1951 09-07-1952 17-10-1952 8.137 26-01-1950 14-09-1950 18-01-1951 8.1388.150 27-05-19488.141 08-08-1949 07-10-19498.134 20-12-1949 06-12-19498.125 04-04-1950 26-01-1950 28-09-1950 27-12-1950 03-04-1951 26-03-1951 09-05-1951 15-12-1951 02-07-1951 09-06-1952 7.322 16-12-1953 02-11-1955 23-05-1956 8.1258.100 09-05-19518.114 27-02-19527.248 21-07-1952 09.08.1952 7.311 26-08-1953 21-07-1952 15-07-1954 09-11-1953 01-12-1953 19-08-1954 16-08-1954 30-09-1953 22-06-1955 26-03-1955 29-12-1955 8.1607.312 08-12-1955 16-04-1956 16-02-1957 31-12-1957 29-07-1957 26-03-1958 Cargo Ve Cargo SHIPS BUILT HINDUSTAN SHIPYARD LIMITED :: VISAKHAPATNAM SHIPYARD HINDUSTAN 1. Co. Ltd., Navigation The Scindia Steam “Jalausha” 2. Co. Ltd., Navigation The Scindia Steam “Jalaprabha” 3. Co Ltd., Ferry) Navigation The Scindia Steam “Kutubtari” (Passenger 4. Co. Ltd., Navigation The Scindia Steam “Jalaprakash” 5. Co. Ltd Navigation The Scindia Steam “Jalapankhi” 6. Co. Ltd., Navigation The Scindia Steam “Jalapadma” 7. - Co. Ltd., Navigation The Scindia Steam “Jalapalaka” 8. Line Limited The Bharat “Bharatmitra” 9. 8.179 8.179 Limited shipping Company Eastern The Great “Jagrani” 17. Co. Ltd Navigation The Scindia Steam “Jalavishnu” 20. Ministry of Home Affairs “Andamans” cum 2.470(Passenger 10. Co. Ltd., Navigation The Scindia Steam “Jalapratap” 11. Co. Ltd., Navigation The Scindia Steam “Jalapushpa” 12. Line Limited The Bharat “Bharatratna” 13. Co. Ltd., Navigation The Scindia Steam “Jalaputra” 14. Co., Ltd., “Jalavihar” Navigation The Scindia Steam 15. Co., Ltd., Navigation The Scindia Steam “Jalavijaya” 16. “Vidyut” Land Customs Department18. Limited Shipping Corporation The Eastern of Kutch” “State 19. Trust Port Madras “Adyar” 21. Ltd., Shipping Corporation of Orissa” The Eastern “State 8.253 (Motor Launch) 0 Tug) Nozzle (Kort 2 22. Co., Ltd Navigation The Scindia Steam “Jalavikram” S.NO. Name of the Ship / Owner Dead W
72 Hindustan Shipyard Limited Ships Built Delivery 0-08-1965 /Floating 7-01-1956 16-07-1958 16-11-1959 14-10-1957 02-11-1959 28-12-1964 16-11-1960 11-06-1960 25-03-1961 eight of Laying Date of Date of Date Tonnes Keel Launching 5,405 22-08-1957 22-04-1959 27-01-1960 6.419 07-12-1957 12-12-1958 27-10-1959 7.3126.391 04-08-1956 22-11-1957 31-08-1957 05-07-1958 26-07-1957 9,632 10-06-1959 03-10-19599,666 31-12-1959 16-01-1961 11-05-1959 06-09-1960 02-10-1961 9,644 22-01-1959 29-04-1960 18-05-1961 12,557 02-12-1959 16-04-1961 06-04-1962 12,87312,947 08-01-1962 15-10-1963 04-05-1965 24-05-1962 16-04-1964 29-01-1966 12,577 22-09-1960 06-04-1962 30-04-1963 12,923 13-11-1963 09-12-1965 11-10-1966 12,60612,565 29-09-196012,608 25-01-1961 27-08-1960 14-09-1962 20-12-1961 28-01-1963 05-05-1961 17-08-1962 23-09-1963 12,91512,912 06-09-196212,886 05-12-1964 26-04-196312,886 31-03-1966 01-07-196512,959 02-08-1966 04-05-1964 01-10-1966 08-01-1965 28-12-1966 02-10-1967 23-08-1965 03-12-1967 26-1967 02-03-1968 12,913 12-10-1961 29-03-1963 12-11-1964 (Launch) 2 Limited Shipyard Shipyard 47. of India Ltd., “Vishva The Shipping Corporation Seva” 27. Limited Steamships New Dholera “Jayalakshmi” 37. Co., Ltd., Navigation The Scindia Steam Kala” “Jala 25. “Dhruvak” Indian Navy26. “Indian Industry” Ltd., Company The India Steamship (Mooring Vessel) 2 23. Co., Ltd., Navigation The Scindia Steam “Jalaveera” 24. Ltd., Shipping Company Eastern The Great “Jagmitra” 28. Ltd., Shipping Corporation The Eastern of Uttar “State Pradesh” 29. Haldia” Calcutta CommissionersPort “R.S.V. 30. Ltd., Shipping Corporation of Rajasthan” The Eastern “State 31. “Vishvanidhi” of India Ltd., Shipping Corporation The Western 32. of India Ltd., of Punjab” The Shipping Corporation “State 33. “Vishva Shanti” of India Ltd., The Shipping Corporation 34. “Vishva of India Ltd., Prem” The Shipping Corporation 35. of India Ltd., “Vishva The Shipping Corporation Maya” 36.Vessel) Survey (Port of India Ltd., “Vishva The Shipping Corporation Mangal” 38. Indian Navy “Darshak” 39. of India Ltd., The Shipping Corporation Pradesh” of Madhya “State 40. “Rohini” Hindustan 41. Co., Ltd., Navigation The Scindia Stea Kendra” “Jala 42. of India Ltd., The Shipping Corporation Bengal” of West “State 43. Co., Ltd., Navigation The Scindia Steam “Jalakanta” 45. of India Ltd., The Shipping Corporation “Vishva Tej” 46. “Vishva Tirth” of India Ltd., The Shipping Corporation (Survey Vessel) 44. of India Ltd., The Shipping Corporation of Mysore” “State S.NO. Name of the Ship / Owner Dead W
Annual Report 2011-12 73 Ships Built Delivery /Floating 0-10-1969 25-04-19717-08-1971 12-07-1972 27-03-1972 11-02-1973 05-04-1974 07-08-1975 28-02-1976 18-12-1974 30-11-1975 30-03-1976 12-03-1970 14-12-1970 31-12-1970 01-05-1971 14-07-1971 30-09-1971 eight of Laying Date of Date of Date Tonnes Keel Launching 12,972 24-12-1965 15-11-1967 12-09-1968 12,937 23-01-1968 15-04-1968 29-01-1969 13,762 25-11-1971 17-08-1973 16-08-1974 13,967 26-08-197013,765 02-11-1071 02-03-1973 14,197 30-06-1971 06-03-1973 04-03-1974 29-03-1972 26-01-1974 16-03-1975 21,420 26-06-1974 24-07-1975 06-09-1976 12,852 22-11-1967 08-10-1969 20-04-1970 12,931 13-02-1967 24-09-1968 11-05-1969 13,986 18-03-1970 17-03-1972 18-05-1973 21,298 11-09-197221,383 22-06-1974 23-03-1975 28-01-1974 14-03-1975 20-03-1976 12,881 26-06-1969 30-11-1970 22-10-1971 21,393 30-08-1973 03-10-1974 30-11-1975 12,90012,881 19-05-1967 20-03-196912,883 17-12-1969 06-06-1968 09-02-1970 16-12-1968 12-09-1970 20-07-1970 02-07-1971 14,089 07-10-1974 17-11-1975 30-10-1976 13,971 23-12-1970 23-08-1972 16-10-1973 rust Launch tnam Port T tnam Port 57. of India Ltd., The Shipping Corporation “Vishva Nayak” 67. Dempo Stemships Ltd., Priya” “Jagat 70. Oil Gas Commission “Sagarika-2” & Natural Vessel) Crew cum (Supply 52. “Vishva of India Ltd., Dharma” The Shipping Corporation 62. of India Ltd., “Vishva The Shipping Corporation Mamta” 51. “Vishva Shakti” of India Ltd., The Shipping Corporation 53. “Vishva Vikram” of India Ltd., The Shipping Corporation 55. of India Ltd., “Vishva The Shipping Corporation Sarshan” 48. “Vishva Siddhi” of India Ltd., The Shipping Corporation 49. “Vishva Bhakti” of India Ltd., The Shipping Corporation 50. “Vishva of India Ltd., Shoba” The Shipping Corporation 54. “Shanti” The Visakhapa 56. Limited Hindustan Shipyard “Walchand” 58. of Shipping General The Directorate Rajendra” “T.S. 59. The Visakhapatnam Trust Port Duck-II” “Bombay 60. of India Ltd., “Vishva The Shipping Corporation Karuna” 61. of India Ltd., The Shipping Corporation “Vishva Yash” 63. “Vishva of India Ltd., Bandan” The Shipping Corporation 64. Ship) (Training Vishva Madhuri” of India Ltd., The Shipping Corporation 65. (Landing Craft) Ltd., Ship Company India Steam “Indian Endurance” 66. 2 Ltd., Doot” Shipping Company Eastern (Dredger) “Jag The Great 68. Oil Gas Commission “Sagarika-1” & Natural 2 69. Ltd., Dhir” Shipping Company Eastern “Jag The Great Vessel) Crew cum (Supply 71. Ltd., Shipping Company Eastern Dharma” The Great “Jag S.NO. Name of the Ship / Owner Dead W 72. “Indian Explorer” India Steam Ship Company Ltd.,
74 Hindustan Shipyard Limited Ships Built Delivery /Floating 1-8-1987 27-10-19881-8-1987 03-03-1989 10-11-19881-8-1987 03-03-1989 27-10-19881-8-1987 03-03-1989 10-11-1988 03-03-1989 04-02-1983 25-11-1984 02-03-1987 05-03-1982 16-07-1984 27-10-1988 03-10-1981 20-08-1983 31-03-1986 29-10-1980 06-05-1981 29-09-1981 09-03-1981 30-01-1983 16-07-1984 eight of Laying Date of Date of Date 0,868 25-10-1976 03-11-1978 05-12-1979 0,8500,854 12-04-1977 25-10-1977 11-07-1979 11-09-1980 01-12-1979 27-03-1981 0,914 02-07-1976 16-03-1978 16-04-1979 Tonnes Keel Launching 9,113 12-08-1984 18-08-1985 04-11-1987 1,2311,240 22-04-19841,240 24-11-1984 22-05-1984 09-12-1985 10-03-1985 19-03-1986 12-08-19841,242 29-01-1985 24-09-1986 12-08-1984 23-06-1986 28-05-1987 16,700 19-03-1979 27-07-1980 16-06-1983 16,789 30-05-1979 03-06-1981 12-12-1984 21,283 21-11-1975 23-12-1976 29-03-1978 16,806 05-12-1979 10-01-1982 08-07-1986 21,365 26-07-1975 24-10-1976 25-06-1977 21,406 16-03-1976 30-03-1976 12-03-1977 21,344 26-02-1976 04-08-2977 27-10-1978 74. Ltd., Damodar Bulk Carriers “Damodar Ganga” 76. “Indian Glory” Ltd., Ship Company Indian Steam 87. SDFC / Moghul Line Ltd., “Lok Maheswari” Bulk Carrier, 26,728 97. Mandakini” “ – C.I.W.C (Barge) 825 92. Bhushan” (Drill “Sagar Ship) Oil Gas Commission & Natural 78. Ltd, Company Navigation The Scindia Steam “Jalagovind” 2 73. Ltd., Shipping Company Eastern The Great Deesh” “Jag 82. of India Ltd., The Shipping Corporation of Haryana” “State 80. Ltd., Company Navigation The Scindia Steam “Jalagouri” 2 75. Ltd., Ship Company India Steam “Indian Grace” 79. Ltd., Company Navigation The Scindia Steam “Jalagopal” 81. Ltd., Hindustan “Tenneti” Shipyard 83. “Nand Rati” Essar Bulk Carrier Ltd.,84. of India Ltd., of Gujarat” “State The shipping Corporation 85. 2 Gas Commission OPSSV Oil “Samudrika-4” & Natural 86. Gas Commission OPSSV Oil “Samudrika-5” & Natural 88. – 6” OPSSV Oil Gas Commission “Samudrika & Natural 89. of India Ltd., of Orissa” The Shipping Corporation “State 90. of India Ltd., Shipping Corporation Tolani Daya” “Prabhu 91. (Landing Craft) Gas Commission OPSSV Oil “Samudrika-7” & Natural 93. of India Ltd., “Lok Rajeswari” The Shipping Corporation 94. 26,710 “ Mundeswari” – C.I.W.C95. “ Manjari” – C.I.W.C96. 26,713 “ Mahanadi” – C.I.W.C 26,639 (Barge) 825 (Barge) 825 (Barge) 825 77.Ltd., Company Navigation Godavari” The Scindia Steam `“Jala 2 S.NO. Name of the Ship / Owner Dead W
Annual Report 2011-12 75 Ships Built Delivery /Floating 23-05-1989 20-11-1990 1-8-1987 10-01-19891-8-1987 03-03-1989 07-02-1989 03-03-1989 5-06-1988 16-10-19891 04-10-1991 0-11-1994 22-03-1996 15-01-1998 7-08-1999 19-04-2001 03-08-2002 13-04-1997 21-10-1998 15-09-2000 19-07-1984 24-03-1985 12-04-1989 05-07-1998 22-03-199905-07-1998 17-01-2000 22-03-1999 27-05-2000 18-01-2000 31-08-2001 04-10-2002 22-03-1994 11-12-1996 09-12-1999 30-09-1999 27-10-2000 17-01-2002 10-09-1994 29-03-1997 12-09-1997 30-09-1999 27-10-2000 16-10-2001 16-06-1989 23-10-1991 03-11-1993 11-10-1999 15-11-2001 31-03-2003 10-11-1999 05-01-2001 10-11-2003 28-08-1985 31-07-1988 28-06-1993 30-03-1985 29-05-1987 23-02-1990 30-11-1989 01-04-1991 02-05-1991 16-06-1989 22-08-1990 16-12-1992 18-09-1986 23-09-1992 06-01-1996 eight of Laying Date of Date of Date OPV 25-06-1988 Tonnes Keel Launching 1,000 01-09-1993 10-12-1994 23-01-1995 Cargo Vessel Cargo Indian Navy TVP H.Q (Indian Navy) 25T B.P Tug eep – A & N Administration 1200 Passenger-cum- du” The Shipping Corporation of India Ltd.,du” The Shipping Corporation 42,750 DWT (Bulker) The Visakhapatnam Trust Port Tug T.B.P 30 The Shipping Corporation of India Ltd.,The Shipping Corporation 42,750 DWT (Bulker) 2 yu” OPV, Indian Navyyu” OPV, OPV 2 ap” The Shipping Corporation of India Ltd.,ap” The Shipping Corporation 26,718 CHOULDAR” – A & N AdministrationCHOULDAR” 100 Passenger Vessel RANGAT” – A & N AdministrationRANGAT” 100 Passenger Vessel KABINI” – New Mangalore Port Trust Port KABINI” – New Mangalore Tug B.P. 50T 1 Gharial” GRSE / Indian NavyGharial” GRSE LSTL Ambica” HSD Oiler Indian Navy “Lok Prakash” The Shipping Corporation of India Ltd., The Shipping Corporation “Lok Prakash” of India Ltd.,“Lok Prem” The Shipping Corporation “INS Sara Indian Navy“INS Sharada” “INS Prat 26,790 26,714 of India Ltd., The Shipping Corporation “Maharashtra” 42,750 DWT (Bulker) – The Visakhapatnam“Mahatma” Trust Port The Visakhapatnam Trust Patel” Port “Sardar OPV “I.N.S GAJ” A - Tug B.P. 50T Tug B.P. 50T 98. “ Matla” – C.I.W.C99. – C.I.W.C “ Argo” (Barge) 825 825 (Barge) 107. Indian Navy OPV, “INS Sujata” OPV 102. “INS Savitri” OPV, 117. – A & N Administration BARATANG” M.V. 100 Passenger Vessel 120. Trust Port - II” – Marmugao TIRACOL “M.T. Tug 45T B.P. 112. Dw Swaraj M.V. 100. 101. 103. “INS 104. 105. 106. 108. “ 109. 110. “Swatantra” 111. Goa” “M.V. 113. 114. 115. Na “M.V.Tamil 116. “M.V. 118. “M.T 119. 121. “M.V. S.NO. Name of the Ship / Owner Dead W
76 Hindustan Shipyard Limited Ships Built Delivery 2.11.2006 2.11.2006 2.01.2005 18.07.2006 18.07.2006 08.02.2005 11.02.2005 08.02.2005 /Floating 22.01.2007 31.05.2007 29.02.2000 05.09.2003 09.05.2004 23.12.2004 03.11.2005 14.06.2006 03.11.2000 17.06.2003 01.09.2005 18.11.1999 23.04.2001 20.05.2004 08.12.1999 06.10.2002 11.02.2005 08.12.1999 11.01.2003 20.05.2005 18.11.1999 23.04.2001 15.07.2004 11-10-199910-11-1999 25-01-2002 24-12-2003 05-01-2001 29-01-2004 eight of Laying Date of Date of Date Dredger 30.09.1999 05.09.2003 09.02.2005 3 Tonnes Keel Launching Research vessel Research rust Launch 0 tnam Port T tnam Port Administration Vessel 100 Passenger Manjusha, National InstituteManjusha, National Technology of Ocean cum Tender Buoy ait Island” A & N Administration 100 Passenger Vessel Jolly Buoy” – A & N Administration 100 Passenger Vessel Hut Bay” – A & N Administration 100 Passenger Vessel CHAPORA - II” – Marmugao Port Trust Port CHAPORA - II” – Marmugao Tug 45T B.P. Good Providence, forGood Providence, Trader DWT 30,000 Barge for A & N for AdministrationBarge 10 x 8 2 Meters 02.02.2005 Barge for A & N for Administration Barge A & N for Administration Barge A & N for Administration Barge 10 x 8 2 Meters 10 x 8 2 Meters 10 x 8 2 Meters Barge for A & N Administration for Barge 10 x 8 2 Meters 02.02.2005 . Barge for A & for N Administration. Barge 10 x 8 2 Meters 02.02.2005 st nd rd th th th G.H.D. Sagar Durga” – Visakhapatnam Trust Durga” Port Sagar G.H.D. 500 M M.L.Radha Nagar for A & N. Admin.M.L.Radha for Nagar A & N Admin. for M.L Uttava A & N Admin.M.L.Nimbutala for A & N Admin.M.L.Nilambar for Utility Launch Utility Launch Utility Launch Utility Launch 0 0 M/s. Goodearth Maritime Limited (GML), Chennai Maritime Limited Goodearth M/s. carrierBulk series 29.07.2005 127. FRP Launch – Visakhapa 137. Visakhapatnam Rani for Trust Port “M.V.Jhansi B.P.Tug T 50 125. Chatterjee Sarat & Co. B” –M/s Ravi “F.C 126. Wandoor” – A & N Administration “M.V. Floating Crane 17.5 Tons 100 Passenger Vessel 122. “M.T. 123. N & A – TEAL” “M.V. 124. “M.V. 128. “M.V. 129. “ 130. 1 131. 2 132. 3 133. 4 134. 5 135. 6 136. Str “M.V. 139. 140. 141. 142. 143. M.V. 138. Sagar ORV S.NO. Name of the Ship / Owner Dead W
Annual Report 2011-12 77 Ships Built Delivery /Floating 0-01-07 05.06.2008 17.08.2009 18.12.07 14.11.2008 10.08.2009 2.01.2007 03.01.2008 07.05.2008 5-06-2007 28-05-2009 05-01-2012 18.10.2003 15.10.2008 27.04.2009 21.10.2000 14.02.2005 27.06.2008 18.01.2006 16.05.2007 23.01.2008 09.01.2008 23.03.200921.03.2009 12.04.2010 29.03.2010 05.02.2011 21.03.2009 14-07-2010 30-12-2011 08.12.1999 14.06.2004 06.11.2008 08.12.1999 14.06.2004 06.11.2008 31-03-2010 31-03-2011 17-02-2012 eight of Laying Date of Date of Date Tonnes Keel Launching Cargo vessel Cargo control vessel control series Bulk carrier series Bulk carrierseries 0 Bulk carrier series Bulk carrier series Bulk carrier series Series Bulk Carrier Series Oil recovery and pollution Oil recovery GML, Chennai 30,000 DWT Trader UTL Administration T Passengers-160 700 Delima for VPT, VisakhapatnamDelima for VPT, pull Tug 50-T Bollard North Passage for A & N Admin. for North Passage 150 Passenger Vessel Good Pilgrims for GML,Good Pilgrims for Chennai 30,000 DWT Trader Jal Sudhak, Visakhapatnam for Trust Port Good Trade for GML, for ChennaiGood Trade 53,000 DWT Diamond Good Pacific, for for Good Pacific, 147. A & N Administration for Bambooka” “M.V. 150 Vessel Passenger 152. GML, Good Pride for Chennai M.V. 53,000 DWT Diamond 153. GML, for Precedent Chennai M.V.Good 53,000 DWT Diamond 151. Trust Port New Mangalore for Iswari, M.T 155. Indian Coast Guard for Rani Abbakka Bollard Pull tug 32-T. 2 Inshore VesselPatrol 2 150. M.V. 145. M.V. 146. for M.V.Kavaratti, 149. M.V. 148. “M.V. 154. A.W. Mr. 156. M.V. 144. GML, for Chennai. Good Princes, M.V. 30,000 DWT Trader S.NO. Name of the Ship / Owner Dead W
78 Hindustan Shipyard Limited