HINDUSTAN SHIPYARD LIMITED
PAPERS TO BE LAID ON THE TABLE OF LOK SABHA/RAJYA SABHA
AUTHENTICATED
RAKSHA RAJYA MANTRI 1!
HINDUSTAN SHIPYARD LIMITED
VISION
To become a world class Defence Shipyard, to construct Naval Ships and Submarines for the Indian Navy and Coast Guard and to meet the repair requirements of such vessels and other Government Vessels.
MISSION
To upgrade the Shipyard, acquire advanced technologies in war ships and submarine construction in a phased manner from 2010 to 2025, and take up projects planned by
Indian Navy and Indian Coast Guard
for meeting its long term needs. 1! CONTENTS
• Board of Directors 1
• Chairman’s Address 2
• Notice 5
• Directors’ Report 6
• Auditors’ Report 31
• Comments of the Comptroller and Auditor General of India 36
• Balance Sheet 38
• Profit & Loss Account 39
• Schedules to the Accounts 40
• Notes forming part of Accounts 47
• Balance Sheet Abstract & Company’s General Business Profile 60
• Cash Flow Statement 61
• Social Overhead 62
• Last 10 years at a glance 64
• Ships built 66
Front Page : "Rani Abbaka" 1st IPV of 5 series vessels is ready for delivery. Repairs of INS KUMBHIR and INS SANDHAYAK is under progress. Back Page : "M.V. Good Precedent" 53000 DWT Bulk carrier, 2nd of 6 series vessels delivered to its owners. Hindustan Shipyard Limited
HINDUSTAN SHIPYARD LIMITED (A Government of India Undertaking)
BOARD OF DIRECTORS RAdm. N. K.MISHRA, NM, IN (Retd.) Chairman & Managing Director (From 01-08-2011) RAdm. K.C. SEKHAR, AVSM, VSM, IN (Retd.) Chairman & Managing Director (Addl. Charge) (From 01 -01-2011 to 31-07-2011) Cmde. NARESH KUMAR, VSM, IN (Retd) Chairman & Managing Director (Upto 31-12-2010) Shri RAKESH MAHAJAN Director (Finance & Commercial) Cmde. K .S .SUBRAMANIAN, NM, IN (Retd.) Director (Shipbuilding) (From 04-06-2011) Capt. P.V.K.MOHAN Independent Director (Upto 05-06-2011) Dr. DEVI SINGH Independent Director (From 18-5-2011) Shri GYANESH KUMAR, IAS Director VAdm. N.N.KUMAR, AVSM, VSM, IN Director
PERMANENT SPECIAL INVITEES VAdm. D.S.P.VARMA, PVSM,AVSM,VSM, IN(Retd.) Dr. S.C.PANDEY (From 25.5.2011) Shri.PRAMODE K.MISHRA (Upto 24.05.2011)
COMPANY SECRETARY Shri INAITULA BAIG
BANKERS AUDITORS
1. Indian Bank M/S. G.R.KUMAR & CO. 2. State Bank of India Chartered Accountants 9, Merry life Apartments, 3. UCO Bank Doctor’s Colony, Pedda Waltair, 4. Syndicate Bank Visakhapatnam – 530 017 5. Canara Bank
REGISTERED OFFICE 209 & 209A, Vikram Tower Phone : 011-25737425 16, Rajendra Place Fax : 011-25730029 New Delhi-110 008
HEAD OFFICE & WORKS: Phone : 0891-2577404/2577437/ Gandhigram 9493792132 (PRO) Visakhapatnam – 530 005 Fax : 0891-2577502/356/667 E-mail : [email protected] Web : www.hsl.nic.in
4 59th Annual Report
BOARD OF DIRECTORS (As on Date of AGM)
RAdm N.K. Mishra, NM, IN (Retd.) Chairman & Managing Director
VAdm. N.N. Kumar, Shri Gyanesh Kumar, IAS Dr. Devi Singh AVSM, VSM Director Director Director
Shri Rakesh Mahajan Cmde K S Subramanian Director NM, IN (Retd.) (Finance & Commercial) Director (Shipbuilding)
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1 Hindustan Shipyard Limited
CHAIRMAN’S ADDRESS
Dear Shareholders,
I have the great pleasure in welcoming you to this 59th Annual General Meeting of your Company and share with you some of significant achievements during the year under review. I am happy to report that, the Government has sanctioned Financial Restructuring package of ` 824.90 Crores and the company has successfully implemented the Financial Restructuring package and cleared legacy liabilities. With the implementation of Financial Restructuring package, the legacy liabilities have been taken care of. However, the financial health of the Company continues to be poor with accumulated losses of ` 930.10 Crores and a negative networth of ` 628.11 Crores as on 31st March, 2011. The Directors' Report and Audited Financial statements has already been circulated to you, with your permission, I take them as read.
HSL being an old & premier shipyard of the country has been striving towards better productivity and optimum utilization of resources. The total Income of the company during the year is ` 637.87 Crores as compared to ` 651.16 Crores for the previous year. Your company recorded a profit of ` 54.99 Crores as against ` 2.32 Crores of previous year due to accounting of ` 452.68 Crores grant in aid received from Government of India as Financial Restructuring package.
The major highlights of the year 2010 -11 are as follows
a) The Ministry has sanctioned ` 824.90 Crores as Financial Restructuring package and the same has been implemented successfully.
b) The company concluded contracts for an order value approx. ` 798 Crores with Coast Guard, Indian Navy and Kandla Port Trust. However the order value is not sufficient for the Yard to sustain. The company desperately needs to secure high value orders from Indian Navy after its transfer of Administrative control from Ministry of Shipping to Ministry of Defence.
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2 59th Annual Report c) Some of the noteworthy achievements during the year are as follows
i. Two 53 K bulker vessels were delivered to M/s. GML.
ii. Six vessels of different categories were launched/floated.
iii. Keels were laid for five new vessels.
iv. Repair of ONGC Jack up Rig is at advanced stage of completion and targeted to be delivered by the end of Nov 2011.
v. Repair of twenty three vessels were undertaken during the year 2010-11 including two warships viz. INS KUMBHIR &INS SANDHAYAK.
Your company is committed to create value addition by not only achieving path breaking achievements in shipbuilding & ship repairs but also developing indigenous repair capabilities of Naval Submarines and off shore rigs of the country.
The present shipbuilding order book position comprises 24 vessels out of which 14 vessels are at various stages of their construction. The focus of the yard during the next couple of years will be on completion of the orders of M/s. GML & five IPVs for Indian Coast Guard. The other orders would also be attended to with renewed planning & Production norms to keep the workshops & workmen optimally utilised. However I regret to inform that with the present order book most workshops will remain idle in near future unless some high value orders are secured by HSL.
Grading Vide Memorandum of Understanding
The performance of the company for the year, based on self appraisal is “Good” in terms of the MoU signed with the Ministry of Defence.
Corporate Governance
Your company constantly endeavors to adopt and maintain the highest standards of ethics in all spheres of its business activities. Your company firmly believes in the fundamental principles of Corporate Governance like honesty, integrity, accountability, transparency and legal/statutory compliances, to protect, promote and safe guard the interests of all stakeholders. It also strives to carry out its business obligation with good corporate values duly discharging its duties for maximum level of transparency in decision making to avoid conflict of interests. It also accords due importance to adherence of adopted corporate values and objectives and discharging social responsibilities as a responsible corporate citizen.
Infrastructure Upgradation & Modernization
The yard infrastructure is required to be upgraded to increase its capacity and efficiency for construction of sophisticated Defence Vessels in future. This upgradation has been planned to be undertaken in two phases. In first phase the existing infrastructure facilities would be refurbished and or renewed. Budget estimates for the Phase-I modernization is ` 457.36 Crore. In the second phase the yard infrastructure would be augmented so as to make the yard capable of constructing modern warships, submarines and amphibious Vessels etc. Both the proposals are under active consideration at Ministry of Defence.
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3 Hindustan Shipyard Limited Future Outlook
The yard is strategically located on the east coast of the India in the close proximity of Eastern Naval Command. Consequent to transfer of Administrative control of your company to Ministry of Defence, the yard has been identified as one of the Defence shipyards for construction of Warships and Submarines. The present order book is likely to be completed by Aug 2013 and thereafter HSL will concentrate on construction of Defence Vessels. The surplus capacity, if any, available would be utilized for commercial vessels. With above mentioned infrastructure upgradation and capacity improvement the yard will grow as one of the major Defence shipyards of the country.
Human Resource Development
Considering the large attrition rate of the existing workforce of the company in coming years, your company has started inducting the young workforce to fill up the organizational gaps. Your company has inducted 15 management trainees recently and will continue to induct more in coming years depending upon the requirements. The skill development is one of the high priority areas to hone the skills required for construction of complex warships and submarines. Hence, Your company continues to impart training to new entrants and existing employees as well to increase the productivity.
Further, recently your Company has revised the pay scales of the staff and workmen of the company in order to boost their morale which will result in higher productivity. However while approving the wage revision, your company could not arrange the payment of arrears due to staff & workmen as the financial health of the Company did not permit such payments. This is a major issue of the Unions as the wage revision for Officers was undertaken prior to wage revision of staff & workmen and their arrears have been paid.
Acknowledgements
I would like to conclude by thanking Central and state government authorities, the Ministry of Defence, the Naval and Coast Guard authorities, the Dredging Corporation of India Limited, Shipping Corporation of India Limited, The Oil & Natural Gas Corporation Limited, M/s Goodearth Maritime Limited and the shareholders for the trust they have reposed on us. I would like to place on record our thanks to the Comptroller and Auditor General of India, the Principal Director of Commercial Audit and Ex-Officio Member, the Statutory Auditors, Internal Auditors for their valuable suggestions and co-operation. I also acknowledge with gratitude the continual assistance and guidance received from the Indian Navy and Coast Guard. Last but not the least, I appreciate the vital role and hard work put in by all the employees of the company to achieve its goal and Board of Directors and the Ministry of Defence who have supported and guided the company for the turnaround.
Thanking you all once again.
Sd/- New Delhi (N K Mishra) 16 Sep 2011 Rear Admiral, IN (Retd.) Chairman & Managing Director
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HINDUSTAN SHIPYARD LIMITED (A Government of India Undertaking)
NOTICE OF 59th ANNUAL GENERAL MEETING
Notice is hereby given that the 59th Annual General Meeting of the Shareholders of Hindustan Shipyard Ltd., will be held on Friday, the 16th September, 2011 at 11.30 AM at A1/314, Shipyard House, Safdarjung Enclave, New Delhi – 110 029 to transact the following business:
ORDINARY BUSINESS
1) Adoption of Annual Accounts of the Company for the year 2010-11
To receive, consider and adopt the Balance Sheet as at 31st March,2011 and the Profit & Loss Account for the year ended 31st March, 2011 and the Reports of the Directors and Auditors thereon.
2) To fix the remuneration of the Auditors to be appointed by the Comptroller & Auditor General of India for the Financial Year 2011-12.
By order of the Board Hindustan Shipyard Limited
Sd/- New Delhi (Inaitula Baig) Dated the 23rd August,2011 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
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5 Hindustan Shipyard Limited DIRECTORS’ REPORT FOR THE YEAR 2010-11
The Shareholders, Hindustan Shipyard Limited. Gentlemen,
Your Directors are pleased to present the 59th Annual Report on the working of the company for the Financial Year 2010-11. The Audited Profit & Loss account for the financial year 2010-11 and the Balance Sheet, as on 31 Mar 2011 together with the Report of the Auditors of the company and the comments of the Comptroller & Auditor General of India on the Auditor's Report under section 619 (4) of the Companies Act, 1956 are appended to this report. 1. CAPITAL STURCTURE
The authorized equity share capital of the company as on 31 Mar 2011 stood at ` 304.00 Crores against which the paid up Equity Share Capital as on 31 Mar 2011 is ` 301.99 Crores 2. FINANCIAL RESTRUCTURING
The Ministry has sanctioned ` 824.90 Crores towards financial restructuring package as mentioned below: i) An amount of ` 452.68 Crores (Rupees Four Hundred Fifty Two Crores and Sixty Eight lakhs) has been given as grants in aid for clearance of old outstanding liabilities towards Banks, employee arrears, tax arrears and other liabilities. ii) The existing Government loan with interest and Government guarantee fee against loan from SBI amounting to ` 372.22 Crores (Rupees Three hundred Seventy Two Crores and Twenty Two lakhs) has been converted as loan in perpetuity without interest. 3. PERFORMANCE HIGHLIGHTS 3.1 Financial Parameters The Directors are pleased to inform that the company has recorded a Profit Before Tax (PBT) of ` 165.18 Crores during the year 2010-11. This increase in PBT is due to accounting of grant-in-aid of ` 452.68 Crores as income which has been received from Government of India towards Financial Restructuring. 3.2 Value of Production
The company achieved a value of production of ` 603.84 Crores during the FY 2010-11. 3.3 MOU Rating In terms of the parameters finally arrived at the Memorandum of Understanding signed with Government for the year 2010-11, performance of the company is expected to be rated as “Good”. 4. DIVISION-WISE PERFORMANCE 4.1. SHIPBUILDNG
The Shipbuilding Division of your Company achieved a Value of Production of ` 243.19 Crores for 2010-11 as against ` 243.08 Crores of the previous year.
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Floating of VC 11138 “M.V Good Trade” Delivery of "Good Precedent" 53000 DWT Bulker to GML, Chennai
4.1.1. MAIN EVENTS Following are the major events recorded by the Shipbuilding Division during the year 2010-11:
Sl.No. Events Date Description of Vessel Owner 1. Fresh contracts concluded 27 Aug 2010 3 No 50 T BP Tugs Indian Navy 23 Mar 2011 8 No. Inshore Patrol Vessels Coast Guard 24 Mar 2011 2 No. 50-T BP Tugs Kandla Port Trust 2. Delivery 12 Apr 2010 First (of 6 No) 53000 DWT Bulker GML, Chennai 05 Feb 2011 Second (of 6 No) 53000 DWT Bulker GML, Chennai 3. Floating / Launching 03 May 2010 Floating of Second (of 6 No) 53,000 DWT Bulker GML, Chennai 15 May 2010 Launching of Third (of 5 No) Inshore Patrol Vessel Coast Guard 14 Jul 2010 Launching of First (of 2 No) 50T BP Tug Visakhapatnam Port Trust (VPT) 04 Nov 2010 Launching of Second (of 2 No) 50T BP Tug Visakhapatnam Port Trust (VPT) 06 Nov 2010 Launching of Fourth (of 5 No) Inshore Patrol Vessel Coast Guard 31 Mar 2011 Floating of Third (of 6 No) 53,000 DWT Bulker GML, Chennai 4. Keel Laying 27 Dec 2010 First (of 3 No) 50-Ton BP Tug Indian Navy 27 Dec 2010 Second (of 3 No) 50-Ton BP Tug Indian Navy 30 Dec 2010 Fourth (of 6 No) 53,000 DWT Bulker. GML, Chennai 30 Dec 2010 Fifth (of 6 No) 53,000 DWT Bulker GML, Chennai 05 Mar 2011 Third ( of 3 No) 50-TBP Tug Indian Navy
Launching of the 5th IPV VC11158-”RANI RASHMONI” by Smt. Ila Sharma, Wife of Sri S.P.Sharma, Inspector General, Commandant of the Coast Guard (East) in the august presence of Shri M.M.Pallam Raju, Hon’ble Raksha Rajya Mantri, Govt. of India
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7 Hindustan Shipyard Limited 4.1.2. Order Book Position as on 31 May 2011 HSL is presently having an order book of 24 Vessels of which, 14 Vessels are under various stages of construction. The value of the above Shipbuilding orders is ` 1108.21 Crores. The details of Order Book Position is as follows: Sl. No Yard No. Type of the Vessel No. of Owner Balance Contractual Anticipated Vessels Contract Value Delivery Delivery (Qty.) (` In Cr) Date Date 1 11138 to 11141 53,000 DWT 4 GML, Chennai 237.29 Jul 2009 – Sep 2011 – Diamond Jan 2011 Aug 2013 series Bulk Carriers 2 11154 to 11158 Inshore Patrol Vessels 5 Indian 34.07 Mar 2008 – Aug 2011 – Coast Guard Mar 2009 Jul 2012 3 11160 & 11161 50-Ton Bollard Pull Tugs 2 Visakhapatnam 39.13 Mar 2011 – Aug 2011 – Port Trust Jul 2011 Oct 2011 4 11162 to11164 50-T Bollard Pull Tugs 3 Indian Navy 155.40 Oct 2012 – Oct 2012 – Jun 2013 Jun 2013 5 11165 to 11172 Inshore Patrol Vessels 8 Indian 551.12 Aug 2013 – Aug 2013 – Coast Guard May 2015 May 2015 6 11173 to 11174 50 –T Bollard pull Tugs 2 Kandla 91.20 Mar 2013 – Mar 2013 – Port Trust Jun 2013 Jun 2013 Total 24 1108.21
Keel Laying for VC11162 the 1st. B.P. Tug of 3 no. Keel Laying for VC11163, the 2nd B.P.Tug. of 3 no. series series by Capt. G.Rajsekhar Rao, Warship Production by Shri M.Prasad, Sr. Engineer (QC), retiring on 31 Dec Superintendent of WOT(V) 2010 on his superannuation
4.1.3. Production & Physical Performance The Shipbuilding production in DWT and capacity utilization achieved during the year 2010-11 are presented below. The figures for same parameters for previous year are also shown for comparison. Sl. No. Description Unit 2010-11 2009-10
1 Installed capacity (at 3.5 Standard Pioneer Ships DWT 75,250 75,250 per annum)
2 Actual Production achieved DWT 61853 67572
3 Capacity Utilization Percentage 82 % 90 %
4 Productivity achieved M.hrs/DWT 42.5 27.20
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Launching of the 4th IPV VC11157 “RANI GAIDINLIU” Launching of 50 Ton B.P.Tug VC 11161 “Col H.Cart Wright by Smt. Punam Mathur, W/o Sri Chandrahas Mathur, IRS Reid” for Visakhapatnam Port Trust by Sri G.V.L. Satya Chief Commissioner of Customs & Central Excise, Vizag. Kumar, IRTS, Dy. Chairman, Visakhapatnam Port Trust.
4.2 SHIP REPAIRS During the year Ship Repair Division has undertaken repairs of 22 vessels (Including 8 Foreign Flag) of various types belonging to Indian Navy, DCI, SCI, ONGC, VPT etc. and also miscellaneous works. The repair dock was utilised to its optimum level. Your Company achieved a Ship Repair Turnover of ` 277.38 Crores during the year 2010-11 and is committed to increase its revenue from Ship Repairs in coming years.
4.2.1. MAJOR WORKS DURING THE YEAR 2010-11 (a) Repair contract of Jack up Rig “SAGAR RATNA” of ONGC, worth ` 450 Crores is at and advanced stage of completion and targeted to be delivered by the end of Nov 2011. (b) INS Sandhayak and INS Kumbhir repair orders of `.75 Crores is presently in progress. 4.3. RETROFIT DIVISION The Value of Production on account of submarine Repair of Jack up Rig "SAGAR RATNA" repairs at the Retrofit Division was ` 83.27 Crores. of ONGC is under progress
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9 Hindustan Shipyard Limited 5. OPERATING RESULTS 5.1. The summarized financial results of the Company for the year 2010-11 are presented below. The Profit shown is due to receipt of ` 452.68 Crores Grant-in-aid from Government of India for clearing old outstanding liabilities reflected as extraordinary items in the statement given below : Description (` In Crores) Ship Building Ship Repairs Retrofit Unallocated Total Total Income 247.85 286.02 91.18 12.83 637.88 Profit/(Loss) before Depreciation, Interest & Income Tax & Extraordinary Items(PBDIT) (170.02) 64.07 (28.20) (131.32) (265.47) Depreciation 5.07 0.46 1.35 0.80 7.68 Interest & Finance Charges 2.39 5.29 0.42 6.25 14.35 Extra-ordinary Items (Grant in aid from GoI) - - - 452.68 452.68 Profit/(Loss) Before Tax (PBT) (177.48) 58.32 (29.97) 314.31 165.18 Deferred Tax Asset Written Off 110.19 Net Profit after Tax 54.99
6. CONTRIBUTION TO CENTRAL EXCHEQUER Your company’s contribution to the national exchequer during the year 2010-2011 by way of Income Tax, Service Tax, Customs Duty & Excise Duty is ` 104.64 Crores . 7. FUTURE OUTLOOK HSL is strategically located on the East Coast of India. The yard has been transferred from Ministry of Shipping to Ministry of Defence in February,2010. The Yard has been identified for construction of war ships and submarines. The present order book will be completed by Aug 2013 and thereafter HSL will construct mainly defence vessels. The surplus capacity, if any, available would be utilized for commercial vessels. In coming years there is a plan to modernize the infrastructure in order to make this yard viable for construction of high value orders from Navy viz., War ships, Submarines and other amphibious Visit of a high level Vietnamese delegates headed by Vice Admiral NGUYEN VAN HIEN, Deputy Minster of Defence ships. With the capacity improvement and and Commander-in-Chief of Vietnam People’s NAVY, in modernization of the Yard HSL will grow as one of connection with joint venture proposals for Defence vessels the major Defence Shipyard, in the Country. 8. MODERNISATION The yard is required to be modernized to increase its capacity and efficiency for construction of sophisticated Defence Vessels in future. The modernization is planned in two phases. (a) Phase-1- In the first phase, the existing infrastructure facilities need to be refurbished/ renewed as identified. (b) Phase- 2 – In the second phase of Modernization is to bring up the yard infrastructure in order to construct sophisticated Naval Vessels. 10
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9. DRAWING & DESIGN OFFICE The Design works for ongoing projects such as Inshore Patrol Vessel, Yard Crafts, Dry dock Gate and Bulk Carriers etc. have been carried out using Tribon M3 software in the CAD/CAM center. The capability of Design Office is also planned to be augmented to cater for design of Warships and Submarines.
10. QUALITY ASSURANCE The 3rd Surveillance Audit with transition to ISO 9001:2008 standards was satisfactorily carried out during 19 May 2010 – 21 May 2010 and a new certificate of approval of ISO 9001: 2008 has been issued by LRQA. The 4th surveillance audit was satisfactorily conducted during 08 Nov 2010 – 10 Nov 2010. The Quality Management System of ISO 9001: 2008 is being maintained through periodical internal quality audits. The 5th surveillance audit was last undertaken between 21 Jun 2011 to 23 Jun 2011.
11. INFORMATION TECHNOLOGY In the field of Information Technology, your Company has successfully implemented the following tasks during the year (a) Action is initiated for introduction of e-procurement in HSL and likely to be implemented by Mar 2012. (b) Initiated National Informatics Center (NIC) mail service in view of more confidentiality & security for all HSL official correspondence. (c) Implemented the network security using group policy.
12. ENVIRONMENTAL ASPECTS Your company continues to be environmental 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 2010-11 Visit of Department related Parliamentary standing Committee on industry under the chairmanship of Sri Tiruchi Siva, Hon'ble M.P. 14. WELFARE ACTIVITIES Your Company’s concern for the welfare of the employees continues to be paramount and various welfare measures have been implemented. The Hindustan Shipyard Recreation (HSR) club assisted by the Company looks after the recreational facilities for the employees, company provided crèche facility for the children of lady employees. HSR club conducted 64th Independence Day and 62nd Republic Day celebrations at Colony Parade Ground. Cultural Programs were arranged by HSR Club. Free medical check up camp was organized for the school children through “SAMRAKSHANA” Celebration of 62nd Republic Day HSL ladies club.
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11 Hindustan Shipyard Limited 15. SAFETY, SECURITY & PRODUCTIVITY The safety of the workers/employees has been given utmost importance. During the year Plant Safety inspection has been carried out by the safety personnel for identifying the unsafe conditions / unsafe acts and remedial actions to prevent accidents/injuries have been taken. During this period, Safety Department issued boiler suits and safety shoes to all production connected permanent employees. Safety department conducted Central Safety Committee meeting on Observation of Fire Service Week safety with all members, co-opted members, other invitees, committee members and office bearers. Safety banners/posters/caution boards were displayed to create safety awareness among all employees. Safety Training programs were organized for the workmen and supervisors of contractors working in shipbuilding and ship repairs and also issued photo identity cards to those who had undergone Safety Training Programme. 40th National Safety Day was organized in befitting manner in which Director (Finance & Commercial) administered the safety pledge to all officers and representatives of unions / associations at training center auditorium and distributed prizes for winners of the safety competitions conducted by safety department. Employees of HSL have been deputed for participating the safety competitions duly conducted by Andhra Pradesh Chapter of National Safety Council, Hyderabad on the occasion of 40th National Safety Day Celebrations. 16. TRAINING Training was imparted to large number of ITI Trade Apprentices in the designated trades. During the year 2010-11, 363 Trade Apprentices have successfully completed the training and were awarded National Apprenticeship Certificates by Govt. of India, Ministry of Labor and Employment, NCVT, RDAT, Hyderabad. Training was also imparted to Graduate Engineers and Diploma Holders. 29 Engineering Graduates, 8 Technician (Diploma) Apprentices were imparted training under the Apprentices Act and awarded Certificates of Proficiency by Govt. of India, Ministry of Human Resource Development and Board of Apprenticeship Training (SR), Chennai, during the year 2010-11. HSL also arranged in-plant training and extended project work facilities to 1075 students of various Engineering Colleges, Management Institutions and marine Institutions. 17. 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. This is 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 84 women employees (Officers – 33 ; Staff – 51) employed in the yard. 18. MEDICAL BENEFITS HSL runs two dispensaries, one in the yard which works from 7 AM to 10 PM and the other at residential colony which works round the clock to cater for the needs of employees and their dependents. Medical facilities are extended for outpatient treatment by a panel of doctors. In addition, under referral system there are five empanelled hospitals which are used by HSL employees and their dependants. HSL pays the medical bills directly to the hospitals for the services rendered as per the rate contract entered with them. Majority of the employees including their families are covered under the Medical Reimbursement Scheme for hospitalization and claims amounting to ` 4.05 Crores was disbursed for treatment of employees and the
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12 59th Annual Report their family members during the year 2010-11. Two ambulances are available at yard dispensary for use round the clock. Annual Eye Check up by ophthalmologist from Government Hospital for crane operators and drivers was also arranged. 19. CORPORATE SOCIAL RESPONSIBILITY HSL recognizes that activities under Corporate Social Responsibility (CSR) are not philanthropic acts but a means to serve the society including all stakeholders. The company’s CSR vision forms an integral part of the business function and covers community development initiatives prioritized on local needs most of these are based on “Zero Budget initiatives through voluntary services of employees and nominated management representatives. Following are the highlights of CSR activities: Ä Gandhigram Education Society (GES): Educational facilities are made available to children of HSL employees and local public. Six educational institutes are managed by GES, a body constituted by HSL. Electricity and Water charges for all these Educational Institutions are borne by HSL. Ä Health & Family Welfare: While the Colony Dispensary primarily caters to the need of colony residents, first-aid and medical assistance is also given to outsiders in cases of emergency. Your company also promotes and supports – thrift societies of employees which also serve neighboring colonies. It provides space & Infrastructure for a bi-weekly “RYTHU BAZAR” – a platform for the small farmers to market their produce at economical prices for employees as well as residents of neighboring colonies. Ä Imparting Vocational Training & Setting up of Skill Development Centers : HSL is providing vocational training under the Apprentices Trade Act and Graduate Trainees Scheme of GOI which are both of a statutory nature. Ä Sports & Cultural Activities: HSL supports and provides infrastructure facilities etc., for conducting Regional/National level scouts & guides meets, sports events and cultural events.
Celebration of Independence Day 20. CORPORATE GOVERNANCE REPORT A Report on Corporate Governance is placed as Annexure -1 forming part of this report together with Compliance Certificate as per guidelines for Corporate Governance promulgate by DPE vide their Notification dated 14 May 2010.
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21. RESERVATION OF POSTS FOR SC/ST/OBC Your Company has complied with the Govt. directives with regard to reservation of posts for SC, ST and OBC. Detailed statistics regarding the particulars of recruitment made during the calendar year 2010 & the number filled by members of SC and ST, the representation of SC/ ST and Ex-Servicemen & Women employees as on 01 Jan 2011 are given at Annexures 2, 3 and 4 respectively. Visit of Smt. K.Kamala Kumari, Ex. Hon’ble Union Minister, Ex. Member of Parliament and Member of The National Commission for ST 22. RESERVATION OF PHYSICALLY HANDICAPPED As per Government of India Guidelines, 3% Reservation for Physically Handicapped in all groups viz: A, B, C and D posts are being made. During the calendar year 2010, three Physically Handicapped candidates have been promoted and one candidate has been recruited. 23. OFFICIAL LANGUAGE IMPLEMENTATION During the year, efforts were continued to promote and encourage the use of Official Language. Official Language Implementation Committee Meetings were held regularly. Employees are being imparted Hindi training under the Hindi Teaching Scheme. Hindi workshops were conducted during every quarter where in about 100 employees have been trained. The companies 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 from 01 to 15 Sep 2010. During the period various competitions were organized. Cash awards are given to those employees who have qualified in the exams viz. “Prabodh”, “Praveen” and “Pragya”. HSL’s in-house Hindi magazine ‘Rajbhasa Sarita’ was launched on 23 Sep 2010 to commemorate the Hindi day. 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 25 Oct 2010 to 01 Nov 2010. All personnel were administered Oath and banners are displayed in HSL. 25. IMPLEMENTATION OF RIGHT TO INFORMATION ACT, 2005 As per the directives of the Govt. of India, the RTI Act, 2005 is being implemented in the Company and the required infrastructure has been put in place. An RTI portal in the company’s website is being maintained to provide the requisite information. Periodical reports on the progress of implementation of the Act and reports are being submitted to Statutory Authorities/Government. All necessary information as per the provisions of RTI Act 2005 are being furnished to information seekers regularly. RTI request and appeal Management Information System (RTI –MIS) is being implemented in accordance with the direction of Central Information Commission. 26. CONSERVATION OF ENERGY Information required by the Companies (amendment) Act, 1988 pertaining to Conservation of Energy, Technology Absorption and Foreign Exchange earnings and outgo are placed at Annexure -5 to this report.
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14 59th Annual Report 27. PARTICULARS OF EMPLOYEES During the year 2010-11, there was no employee, who drew remuneration of ` 24 Lakhs or more per annum or ` 2 Lakhs per month. Hence, information as required under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Amendment Rules 2002, is ‘NIL’. 28. 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 had been followed along with proper explanation relating to material departures. (b) That the Directors had 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 at 31 Mar 2011 and the profits of the company for the year ended 31 Mar 2011. (c) That the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in safeguarding the assets of the company and for preventing and detecting fraud and other irregularities. (d) That the Directors had prepared the annual accounts on a going concern basis. 29. STATUTORY AUDITORS M/s. G.R.Kumar & Co., Visakhapatnam has been appointed as Statutory Auditors of the Company for the financial year 2010-11 by the C & AG as per Section 619(2) of the Companies Act,1956. The fees payable to Statutory Auditors for the year 2010-11 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 2011 are placed at Annexure-6. 30. ACKNOWLEDGEMENTS Your Directors express their deep appreciation and place on record their gratitude to the Government of India for the sanction of financial restructuring package and also to other Ministries and Departments of the Government of India especially Department of Defence Production, Ministry of Defence, Ministry of Shipping, and Department of Public Enterprises for their administrative support and guidance. Your Directors are particularly grateful to the Indian Navy and Coast Guard Headquarters, Oil & Natural Gas Corporation Limited, Visakhapatnam Port Trust, Controller of Defence Accounts (Navy), Government of Andhra Pradesh, the Department 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, 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 viz. State Bank of India, Indian Bank, the valuable advice rendered and co-operation extended by the Auditors, M/s G.R Kumar & Co. and Internal Auditors M/s Brahmaya & Co and the officers and staff of the Principal Director of Commercial Audit and Ex- Officio Members of the Audit Board, Hyderabad 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
Sd/- (N.K. Mishra) Place: New Delhi, Rear Admiral, IN (Retd.) Date: 23 Aug 2011 Chairman and Managing Director
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15 Hindustan Shipyard Limited ANNEXURE - 1 REPORT ON CORPORATE GOVERNANCE (For the Year 2010-11)
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 endeavors to adopt and maintain the highest standards of ethics in all spheres of its business activities. The company firmly believes in the fundamental principles of Corporate Governance like honesty, integrity, accountability, transparency and legal /statutory compliances, to protect, promote and safeguard the 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 conflict of interests. It also accords due importance to adherence of adopted corporate values and objectives and discharging social responsibilities as a responsible corporate citizen.
BOARD OF DIRECTORS
2. The composition of the Board of Directors during the FY 2010-11 was Five Members viz. Two Whole Time Directors (Including the Chairman and Managing Director), Two Part time Government Directors, and One Part time Non official Director (Independent Director).
3. The details of the Members of the Board during the Financial Year ended on 31 Mar 2011 are as under
Name of the Directors Period Category of No. of Other Directorship Directorships
Cmde Naresh Kumar, VSM, 01 Apr 2010 to IN (Retd.) 31 Dec 2010 Chairman & Managing Director Nil
RAdm. K. C. Sekhar, AVSM, VSM, 01 Jan 2011 to Chairman & Managing Director IN (Retd) 31 Mar 2011 (Addl. Charge) 1
Shri. Rakesh Mahajan 01 Apr 2010 to 31 Mar 2011 Whole Time Director Nil
Capt. P.V.K.Mohan 01 Apr 2010 to Part-time Non official 31 Mar 2011 Director(Independent) 3
Shri. Gyanesh Kumar 01 Apr 2010 to Part-time Govt. Director 4 31 Mar 2011
V.Adm. N.N.Kumar, AVSM, VSM 01 Apr 2010 to Part-time Govt. Director 1 31 Mar 2011
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16 59th Annual Report 4. Subsequent to transfer of administrative control of HSL to Ministry of Defence, the post of Director (Technical) has been re-designated as Director (Shipbuilding) and two more Functional Director posts has been created on 19 Jan 2011 at Board level i.e. Director (Corporate Planning & Personnel) and Director (Strategic Project) in order to steer HSL for strategic project and increase the efficiency of shipbuilding as well as repairing Naval Vessels, Modernization etc. Currently the recruitment action for two Functional Directors i.e. Director (Corporate Planning & Personnel) and Director (Strategic Project) is on hand.
5. The following Directors have joined the Board of HSL during the Financial Year 2010-11 and up to the date of this report.
a) RAdm K.C. Sekhar, AVSM, VSM, IN (Retd.), C&MD of GRSE, has taken over the additional charge as C&MD of HSL with effect from 01 Jan 2011 vide Ministry letter No. 8(2)/2010/D (SY) dated 27 Dec 2010.
b) It is our privilege to have Dr. Devi Singh, Director, IIM Lucknow on the Board of HSL, who has been appointed as Non Official Part time Director vide Ministry’s Letter No: 2(7)/2010/HSL/D (SY) dated 18 May 2011
c) Cmde K S Subramanian, NM, IN (Retd) has assumed the charge as Director (Shipbuilding) on 04 Jun 2011 vide ministry’s letter No.2 (5)/2010/HSL/D (SY) dated 02 Jun 2011.
d) Rear Admiral Nikunj Kishore Mishra, NM, IN (Retd) has assumed the charge of Chairman & Managing Director w.e.f 01 Aug 2011 and taken over the charge from Rear Admiral K C Sekhar, IN, (Retd.), C&MD of GRSE, who was in additional charge of Chairman & Managing Director of HSL
A brief profile of the above mentioned Directors is given below :
RAdm. Nikunj Kishore Mishra, NM, IN (Retd.)
Rear Admiral NK Mishra, NM is an alumnus of the prestigious National Defence Academy, Khadakvasla, Pune. The Flag officer passed out of the academy as the Best Naval Cadet in 1975.
He completed his Engineering Degree from INS Lonavla in 1979 and passed out First in the Overall Order of Merit. Thereafter he did his Electrical and Weapons specialization at INS Valsura, Jamnagar.
On completion of training, served as the Weapons Maintenance Officer (WMO) onboard INS Udaygiri and then joined IIT Powaii, Mumbai for M. Tech in Computer Science.
With an M Tech Degree, the flag officer headed the Controls and Computers faculty at the premier electrical training establishment, INS Valsura. In 1986, he was deputed to UK for Submarine Control Simulator.
Thereafter he worked at Naval Headquarters (DOS(L)), during 1987-1988. The flag officer was then deputed to Republic of Korea as the commissioning crew of first OPV, INS Sukanya.
The flag officer has been the Manager Electrical at Naval Dockyard during 1995-1997. During this period he was deeply involved in MR of INS Rajput and INS Karanj.
He has overseen refits of INS Viraat on two occasions, first in 1993 and then as full fledged Director, Viraat Project Team during 1997-2002. The flag officer was awarded the Nao Sena Medal for successful completion of the modernization refit of Viraat ahead of schedules and with substantial cost savings.
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17 Hindustan Shipyard Limited During 2002-2005, he was the Defence Attaché at Embassy of India, Rome.
The flag officer during his tenure as the Principal Director at the Directorate of Ship Production in 2005-2007, concluded contracts for 25 ships and several minor vessels.
In October 2007, he was elevated to flag rank and since January 2008, he has been the Additional Director General quality Assurance (Naval) in DGQA organization. He took premature retirement
Rear Admiral N K Mishra, NM, IN (Retd.) is taking on 31 Jul 2011 and joined HSL on 01 Aug 2011. over the charge as C & MD of HSL RAdm. K.C.Sekhar, AVSM, VSM, IN (Retd) After passing out from National Defence Academy, Pune, in 1970, Rear Admiral K C Sekhar was commissioned in the Indian Navy in July, 1972. An Engineering degree from Naval College of Engineering Lonavla followed by specialization course and Post Graduation from Indian Institute of Armament Technology, Pune, in Marine Engineering ensured the officer’s transformation into a Marine Engineer. During his long span of career in the Indian Navy of over 36 years, Rear Admiral K C Sekhar held number of important appointments, both at sea and ashore. He spent more than six years at sea mainly carrying out the duties of Marine Engineering Officer on Board of Corvettes & Destroyers. Rear Admiral Sekhar also had the rare distinction of commissioning Indian Naval Ship Eksila at Visakhapatnam, which is the premier Gas turbine Overhauling Establishment of the Indian Navy. On promotion to the rank of Rear Admiral, the officer had a long tenure at Naval Headquarters where he was responsible for maintenance and modernization of ships and sub-marines as well as repair infrastructure up gradation. In 2007, he took over reins of the Naval Dockyard Mumbai, an industrial establishment responsible for repair and refits of ship and submarines and with a large civilian workforce of more than 8500 personnel. Rear Admiral Sekhar took premature retirement from the Navy to take over the reins of Garden Reach Shipbuilders & Engineers as Chairman & Managing Director on 02 Jul 2008. After joining GRSE, he focused on higher productivity, no cost or Time over run for shipbuilding and creating new and effective Public – Private partnerships. Under his leadership, GRSE has successfully delivered more than 10 ships with a steady increase in steel throughput. On 01 Jan 2011, he has been given the additional charge of C&MD of HSL and took over the charge from Cmde. Naresh Kumar. Dr. Devi Singh, Director, IIM Lucknow Dr. Devi Singh, currently serving his second term as Director of the Indian institute of Management, Lucknow, and is a well known Professor in the area of International Finance & Management. He holds Ph.D. in International Finance from Indian Institute of Management (Ahmedabad). Before joining IIML, he was Director of Management Development Institute (MDI) Gurgaon for four and half years. Before joining MDI, Dr. Singh was a visiting professor at the Faculty of Management, McGill University, Canada for five years. He has been a member of Ford Foundation and UNDP Fellow (International Management
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18 59th Annual Report Education). He has been a Visiting Faculty at the International Centre for Public Enterprises, Slovenia, ESCAP Europe and SKK Graduate School of Business, Seoul. He is an alumnus Fellow of the Institute of World Affairs, Connecticut. He has taught leading Business Schools in India. He has published and presented research papers at various national/international conferences. Dr. Sing is author of three books in Finance & Management. He has been a consultant to leading Public & Private Sector and multinational organizations in India. He has been on several policy level committees of Government of India, All India Council for Technical Education, PHD Chamber of Commerce & Industry (PHDCCI), Standing Committee on Public Enterprises (SCOPE) and All India Management Association (AIMA). He has been a member of Boards/Executive Councils of Indian Institute of Management, Kozikhode, Narsee Monjee Institute of Management Studies, Mumbai, Indian Institute of Mass Communication, New Delhi, NITTIE, Mumbai, Ambedkar Univeristy, Lucknow, Jamia Islamia University, and two new Central Universities. He was the President of Association of Indian Management Schools in 2006-07, and member of the All India Board of Management Studies of AICTE for six year (2000-2006). He has served on many Corporate Boards and is on the Board of Governors of some of the leading Public and Private Sector companies. He has received several awards including ISTE National Fellow 2007, UP Ratan 2008 and the Ishan National Award for Best Director of a Business School in 1999. IIM, Lucknow has taken major strides and made all round progress under his leadership. Cmde K.S. Subramanian, NM, IN, (Retd.) A Marine Engineer with a Post Graduate degree in Management Sciences, he has held several afloat and ashore appointments in the Indian Navy before joining HSL. Besides serving as engineer officer of five Naval Ships, some of the important assignments held by him include Deputy Director General. Naval projects, Mumbai; General Manager (Refits) Naval Dock Yard, Mumbai; Addl. General Manager (Yard Services) & (Production) at Naval Dock Yard, Visakhapatnam; Deputy Superintendent at Naval Ship Repair Yard, Kochi and Command Engineer officer, Southern Naval Command. He is fellow of both the Institution of Engineers and Institute of Marine Engineers and was awarded Nao Sena Medal for devotion to Duty by the President of India in 2007 6. 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. Nikunj Kishore 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
Dr. Devi Singh Part-time Non official Director 5
Shri. Gyanesh Kumar Part-time Govt. Director 4
VAdm. N.N.Kumar, AVSM, VSM, IN Part-time Govt. Director 1
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19 Hindustan Shipyard Limited 7. During the year and upto the date of this report the following Directors have left the Board due to superannuation or completion of tenures of their appointment: a) Cmde. Naresh Kumar , VSM, IN (Retd), Chairman & Managing Director has retired from services on attaining superannuation on 31 Dec 2010 b) RAdm K. C. Sekhar, AVSM, VSM, IN (Retd.), Chairman & Managing Director (Addl. Charge) has completed his tenure on 31 Jul 2011 on handing over the charge to RAdm. Nikunj Kishore Mishra, NM, IN(Retd.). c) Capt. PVK Mohan completed his tenure of his appointment on 06th June, 2011.
The Board of Directors wish to place on record, appreciation of the services rendered by the outgoing Directors
8. 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 6th June, 2011. The said vacancy is in process of being filled up by the Government. Hence the present composition of the Board of Directors of the company is not in accordance with DPE guidelines.
BOARD MEETINGS
9. The Board meets regularly and is responsible for the proper direction and management of the Company. During the financial year ended 31 Mar 2011, Eight Board Meetings were held on 21 Jun 2010,13Aug 2010, 19 Aug 2010, 24 Sep 2010, 16 Nov 2010 , 24 Dec 2010, 18 Feb 2011 and 23 Mar 2011.
DIRECTORS ATTENDANCE
10. Details of Directors attendance at the Board Meetings and Annual General Meeting are given below.
Name of the Directors No. of Meetings Attendance at Held during the Attended last AGM tenure of Directors
Cmde Naresh Kumar, VSM, IN (Retd.) 6 6 Yes
RAdm. K. C. Sekhar, AVSM, VSM, IN (Retd) 2 2 -
Shri. Rakesh Mahajan 8 8 Yes
Capt. P.V.K.Mohan 8 6 Yes
Shri. Gyanesh Kumar 8 5 Yes
VAdm. N.N.Kumar, AVSM, VSM 8 6 Yes
BOARD PROCEDURE
11. 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, other relevant documents are circulated well in advance to the members of the board in order to have a 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. 20
20 59th Annual Report 12. Generally agenda papers are prepared by the concerned officials, concurred by the Director (Finance & Commercial)/Director (Shipbuilding) 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.
13. 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 issues being discussed by the Board or Committees.
PERMANENT SPECIAL INVITEES ON THE BOARD
14. Ministry of Defence has appointed Vice Admiral (Retd.) D.S.P.Varma, PVSM, AVSM, VSM, Director General, Akankshah, New Delhi & Dr. S.C.Pandey, IAAS, Additional FA(P) & JS, MoD as Permanent Special Invitee on the Board of HSL.
AUDIT COMMITTEE
15. The Audit Committee of the Board was constituted on 06 Sep 2008 and reconstituted from time to time. During the year 2010-11, the following are the Audit Committee Members.
1. Capt. PVK Mohan Chairman (Part Time Non official Director)
2. Shri Gyanesh Kumar Member (Part Time Official Director)
3. Cmde Naresh Kumar Member (Chairman & Managing Director)
16. Cmde Naresh Kumar superannuated from the post of Chairman & Managing Director due to retirement on 31 Dec 2010 and Capt. PVK Mohan completed his tenure of Appointment on 6 Jun 2011. In view of this, the Audit Committee has been reconstituted with the following members on 26th May, 2011.
1. Dr. Devi Singh Chairman (Part Time Non official Director)
2. Shri Gyanesh Kumar Member (Part Time Official Director)
3. VAdm. N N Kumar Member (Part Time Official Director)
17. Since only one Non official Part time Director is on 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 Enterprises.
18. The terms of reference of the audit 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 that the Management and Board have established.
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21 Hindustan Shipyard Limited 19. 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 submission to the Board.
20. 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 to take note in their subsequent meetings.
21. During the financial year 2010-11 three meetings of the Audit Committee were held on 21 Jun 2010, 13 Aug 2010 and 24 Dec 2010.
22. The attendance of the members of the Audit Committee during the financial year 2010-11 is given below:
Name of the member No of meeting Held during the tenure Attended Capt. PVK Mohan 3 3 Shri Gyanesh Kumar, IAS 3 1 Cmde. Naresh Kumar, VSM, IN (Retd.) 3 3
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 Government Directors are not eligible for sitting fees attended by them. The Part time non-official Directors are paid sitting fees as per the provisions of the Companies Act, 1956 for attending each meeting of the board/committees (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 posted in company’s Website. 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 2011.
ANNUAL GENERAL MEETING
26. The details of the last three Annual General Meetings of the company are given below:
Year Date Time Location
2007-08 26 Sep 2008 11.30 A.M. Transport Bhavan, New Delhi
2008-09 22 Sep 2009 04.00 P.M. Transport Bhavan, New Delhi
2009-10 24 Sep 2010 11.00 A.M. Shipyard House, New Delhi
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22 59th Annual Report WHISTLE BLOWER POLICY
27. The company is in process of laying down a whistle blower policy.
RISK MANAGEMENT POLICY
28. The company is in process of preparing a risk management policy.
DISCLOSURES
29. During the year 2010 -11, the company has not entered into any transactions with the directors 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 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 personal in nature for the Board of Directors and top management.
——————x——————
DECLARATION
As provided under the guidelines on Corporate Governance for CPSEs 2010 issued by the Department of Public Enterprises, 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 2011.
For Hindustan Shipyard Limited
Sd/- Place: New Delhi (N.K. Mishra) Date: 23 Aug 2011 Rear Admiral, IN (Retd.) Chairman & Managing Director
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23 Hindustan Shipyard Limited
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24 59th Annual Report
ANNEXURE “2” POSITION REGARDING REPRESENTATION OF SCHEDULED CASTE AND SCHEDULED TRIBE IN VARIOUS CATEGORIES OF POSTS AS ON 1st JAN 2010 AND 1ST JAN, 2011
Classification of Post/ Services As on 1st January 2010 As on 1st January 2011
Total Scheduled Scheduled Total Scheduled Scheduled Strength Castes Tribes Strength Castes Tribes
PERMANENT:
GROUP “A” 141 29 13 124 28 12
GROUP “B” 289 57 28 317 56 28
GROUP “C” 1749 220 53 1699 222 60
GROUP “D” (Excluding Safaiwala) 460 85 14 411 92 10
GROUP “D” Safaiwala 78 78 - 71 71 -
TEMPORARY:
GROUP “A” ------
GROUP “B” ------
GROUP “C” 1 1 - - - -
GROUP “D” (Excluding Safaiwala) ------
GROUP “D” Safaiwala ------
GROUP “D” (under Apprentices Act, 1961)
FIXED TERM CONTRACT:
GROUP “A” ------
GROUP “B” 46 7 2 43 7 2
GROUP “C” 31 6 2 31 4 2
GROUP “D” (Including Safaiwala) 614 140 33 652 146 32
GROUP “D” (Safaiwala) ------
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25 Hindustan Shipyard Limited
ANNEXURE “3” PARTICULARS OF RECRUITMENT MADE DURING THE CALENDAR YEAR 2010 AND THE NUMBER FILLED BY MEMBERS OF SCs/STs.
Classification of Posts/Services Total Scheduled Castes Scheduled Tribes Reasons for Number of shortfall Posts Posts Posts Posts Posts filled and steps Reserved Filled Reserved Filled during the taken to year. improve the Position.
PERMANENT:
GROUP “A” 14 2 2 - - -
GROUP “B” 36 4 4 - - -
GROUP “C” 30 6 4 2 2 -
GROUP “D” (Excluding Safaiwala) ------
GROUP “D” Safaiwala ------
GROUP “D” (under Apprentices Act, 1961) ------
FIXED TERM CONTRACT:
GROUP “A” ------
GROUP “B” ------
GROUP “C” 2 - - - - -
GROUP “D” (Excluding Safaiwala) 52 8 12 3 - -
GROUP “D” Safaiwala ------
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26 59th Annual Report
ANNEXURE “4” REPRESENTATAION OF EX-SERVICEMEN IN GROUP “C” AND “D” AND NUMBER OF WOMEN EMPLOYEES AS ON 1st JANUARY 2011.
Ex- servicemen Women employees Classification of Posts/Services Total Strength. Number % Number %
PERMANENT:
GROUP “A” 124 4 3.23 8 6.45
GROUP “B” 317 - - 24 7.57
GROUP “C” 1699 12 0.71 34 2.00
GROUP “D” (Excluding Safaiwala) 411 6 1.46 17 4.14
GROUP “D” Safaiwala 71 - - 8 11.27
GROUP “D”(Under Apprentices Act,1961) - - — - -
FIXED TERM CONTRACT FOR TWO YEARS :
GROUP “A” - - - - -
GROUP “B” 43 25 58.14 3 6.98
GROUP “C” 31 9 29.03 5 16.13
GROUP “D” (Excluding Safaiwala) 637 - - 6 0.94
GROUP “D” Safaiwala 15 - - 15 100.00
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27 Hindustan Shipyard Limited
ANNEXURE “5” TO THE DIRECTORS' REPORT 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 2010-11
F O R M – A 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. Replacements 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. b) Additional investments and proposals, if any, being implemented for reduction of consump- tion of energy. NIL c) Impact of the measures at (a) & (b) above for 5,70,200 units saved during 2010-11 due to above reduction of energy consumption and conse- measures. quent impact on the cost of production of goods during the year 2010-11.
d) Particulars with respect to conservation of energy:
Power and Fuel Consumption Current Year Previous Year 1. Electricity a) Purchased units 1,11,79,800 12,644,900 Total Amount ` 5,36,32,960 ` 5,17,41,283 Rate per Unit ` 4.79 ` 4.09 b) Own generation NIL NIL 2. Coal Nil Nil 3. Furnace Oil Nil Nil 4. Consumption per unit of production N.A. N.A.
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28 59th Annual Report
F O R M - B
A. RESEARCH & DEVELOPMENT 1. Specific areas in which R&D was carried out In house Designs development for • 500tons Water Barage for I.N (Part Work) • 50tons Bollard Pull Tug for M/S Kandla Port Trust • Offshore Patrol Vessel for Indian Coast Guard. • MCA non-propelled Barge for I.N 2. Benefits derived as a result of the above R&D • Saving in Design cost and time. • Developing inhouse capabilities in Design. 3. Future Plan of Action • Strengthening of Design infrastructure by adding skilled designers and arranging training to personnel. • Proposal to upgrade design facilities by adding more licenses to existing TRIBON M3 software and other Shipbuilding Software 4. Expenditure on R&D i) Capital; --- ii) Recurring (Revenue) --- B. TECHNOLOGYY ABSORPTION, ADAPTATION AND INNOVATIONS Nil C. FOREIGN EXCHANGE EARNINGS & OUTGO: a) Activities relating to export Initiatives taken to Nil increase export market for products and services and export plans. b) Total Foreign Exchange used and earned:
USED: (` in Crores) a) Material procurement 298.89 b) Others 5.87 Total 304.76
EARNED: 116.41 (` in Crores)
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ANNEXURE - 6
OBSERVATIONS OF THE STATUTORY AUDITORS ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31ST MARCH, 2011 AND THE REPLIES OF THE BOARD OF DIRECTORS
Sl Observation Reply No
1 5(i) (a) Accounting of liabilities towards Accounting of liabilities towards un-settled and incomplete unsettled and incomplete sub-contract work sub-contract work at the end of the year is made based on at the end of the year on estimated basis. technical assessment / estimation of part work completion at the end of the year. This is as per Generally Accepted Accounting Principles.
2 5(i) (b) Effect of using estimates for arriving The Accounting Policy No.4(A) in Schedule 18 (A) 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 as per contracts under percentage completion which total cost for completion of the contract is to be method including recognition of anticipated estimated to arrive at the percentage completion. loss on Ship building contracts and for recognition of income from Ship repair activity The Accounting Policy No. 4(B) in Schedule 18 (A) for under proportionate completion method and accounting of income from other activities including Ship the consequent impact, if any, on the repairs and Submarine activities on accrual basis by profitability and current assets as on the adopting proportionate completion method is in line with Balance Sheet date is not ascertainable. Accounting Standard-9. Hence recognition of income is as per Accounting Standards.
3 5(i) (c) In conformity with AS 7 of ICAI, the The computation of Contract Cost is as per the Accounting Company has estimated future losses in- Policy No 4(A)(1) in schedule 18 (A) and the same is respect of Ship building contracts as stated in applied for estimation of future losses in respect of Ship its Accounting policies at para 4 (A) (i), but as building contracts. This Accounting policy is being depreciation has been excluded the impact consistently followed by the Company for the last several thereon is not quantifiable. years.
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Sd/- (N.K. Mishra) Place: New Delhi, Rear Admiral, IN (Retd.) Date: 26 Aug 2011 Chairman and Managing Director
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30 59th Annual Report G.R. Kumar & Co. Chartered Accountants 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, 2011. The 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 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. The Accounts of the Company for the year, as approved by the Board of Directors of the Company and Certified by us on 27th June 2011, have been revised in the light of provisional comments made by Member, Audit Board, Hyderabad. The said revision has resulted in decrease in profit by ` 150.67 lakhs, decrease in current assets by ` 150.67 lakhs, a disclosure in notes forming part of accounts at no.3(b), modification in presentation of deferred tax asset in P & L A/c and change in allocation of expenditure of ` 1.04 crores in segment report at note no.8.
5. 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.
31
31 Hindustan Shipyard Limited f) Kind attention is drawn to note 19 of schedule 18B, regarding non receipt of letters of balance confirmation from various customers. g) Kind attention is invited to note no 1(d) & 1(e) of schedule 18B, wherein details of various demands and claims totaling to ` 22,932 lakhs, contested by the company before different judicial and appellate authorities and arbitrations are given. The said matters stated therein are all sub-judice and are yet to attain finality.
h) Kind attention is invited to note no 6 of schedule 18B wherein it has been stated that as per Financial Restructuring Package sanctioned by GOI an amount of ` 255.50 crores was provided to liquidate SBI liability. Accordingly, SBI has accepted the payment on 04.06.11 in full and final settlement as per the terms of thier letter dated 03.06.11. Since the matter has attained finality, the company is neither required to quantify nor provide for any interest in the accounts for 2010-11.
i) 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.
c) In conformity with AS-7 of ICAI, the company has estimated future losses in respect of ship- building contracts as stated in its accounting policy at Para 4 A (i), but as depreciation has been excluded, the impact thereon is not quantifiable.
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, 2011.
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) Place : Visakhapatnam Date : 25-08-2011 (D.V.R.Prabhakar) Partner Membership No. 072470
32
32 59th Annual 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.
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. However, quantitative details for user department- wise consumption of steel are not available for reconciliation of steel consumption.
d) Management’s estimation of provision @ 22% towards obsolescence in respect of non–moving General Stores amounting to ` 87.66 lakhs is purely subjective and in the absence of any details of identifiable items with corresponding book values, cannot be corroborated. 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.
33
33 Hindustan Shipyard Limited
vi) The Company has not accepted any deposits from public. Accordingly clause (VI) of paragraph 4 of the order is not applicable
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.,
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, 2011 for a period of more than six months from the date they became payable.
c) As at 31st March, 2011, there have been no disputed dues, which have not been deposited with the respective authorities in respect of Provident Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess, except disputed penal interest on belated remittances of Provident fund of `109.78 lakhs pending before the Hon’ble High Court of Andhra Pradesh, and disputed sales tax of `3,498.46 lakhs (and interest thereon) pending before the Sales Tax Appellate Tribunal, Visakhapatnam and an amount of ` 2081.30 lakhs together with interest and penalties, thereon in respect of Service Tax payable in respect of INS Sindhukeerti.
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 not defaulted in payment of any loan installment or interest in respect of Term Loans from financial institutions and banks, except in case of term loan from State Bank of India with an outstanding balance of ` 84,130 lakhs, against which a compromise settlement has been reached for an amount of ` 25,546 lakhs, and the same was paid on 04.06.11 (being a post balance sheet event) as per Rehabilitation Package sanctioned by GOI.
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.
34
34 59th Annual Report xvi) In our opinion, the Term Loans have been applied for the purposes for which they were raised. 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 Regd No. 004941S) Place : Visakhapatnam Date : 25.08.2011 (D.V.R.Prabhakar) Partner Membership No.: 072470
35
35 Hindustan Shipyard Limited
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF HINDUSTAN SHIPYARD LIMITED, VISAKHAPATNAM FOR THE YEAR ENDED 31 MARCH 2011
The preparation of financial statements of Hindustan Shipyard Limited, Visakhapatnam for the year ended 31 March 2011 in accordince with the financial reporting framework prescribed under the companies act, 1956 is responsibility of the management of the Company. The statutory auditor appointed by the Comptroller and Auditor General of India under section 619(2) of the Companies Act 1956 is responsible for expressing opinion on these financial statements under Section 227 of the Companies Act, 1956 based on the independent audit in accordance with the auditing and assurance standards prescribed by their professional body, the Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report dated 25 August 2011.
I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section 619(3)(b) of the Companies Act, 1956 of the findncial statements of Hindustan Shipyard Limited, Visakhapatnam for the year ended 31 March 2011. This supplementary audit has been carried out independently and is limited primarily to inquiries of the statutory auditor and company personnel and a selective examination of some of the accounting records. In view of the revisions made in the financial statements by the management, as a result of my audit observations highlighted during supplementary audit as indicated in the Note No.20 of the Notes forming part of Accounts (Schedule No.18B), I have no further comments to offer upon or supplement to the Statutory Auditor's Report, under Section 619(4) of the Companies Act, 1956.
For and ont he behalf of the Comptroller and Auditor General of India
(Y.N. Thakare) Principal Director of Place : Hyderbad Commercial Audit & Ex-Officio Member Date : 29 August 2011 Audit Board, Hyderabad
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36 59th Annual Report
ACCOUNTS
37
37 Hindustan Shipyard Limited Balance Sheet as at 31st March, 2011 As at As at Sch 31st March, 2011 31st March, 2010 ` in lakhs ` in lakhs ` in lakhs I. SOURCES OF FUNDS (1) Share Holders’ Funds : (a) Capital 1 30199.22 30199.22 (b) Reserves and Surplus 2 9.50 9.50 30208.72 (2) Loan Funds : (a) Secured Loans 3 9319.82 9639.67 (b) Unsecured Loans 4 62767.25 72087.07 59383.79 Total 102295.79 99232.18 II. APPLICATION OF FUNDS (1) Fixed Assets : 5 (a) Gross Block 22636.81 21270.60 (b) Depreciation 14953.04 14393.45 (c) Net Block 7683.77 6877.15 (d) Capital Works in Progress 1240.07 1247.05 8923.84 8124.20 (2) Deferred Tax Asset 0.00 11018.63 (Refer Note No.11 of Schedule 18B) (3) Current Assets, Loans & Advances : 6 (a) Inventories 33165.24 47889.76 (b) Sundry Debtors 13960.24 11006.61 (c) Cash and Bank Balances 30586.20 6031.56 (d) Other Current Assets 11050.27 6354.28 (e) Loans and Advances 25401.88 13474.49 114163.83 84756.70 Current Liabilties & Provisions 7 (a) Current Liabilities 85719.40 90317.83 (b) Provisions 28082.70 12859.73 113802.10 103177.56 Net Current Assets 361.73 (18420.86) (4) Debit balance in Profit and Loss account 93010.22 98510.21 Total 102295.79 99232.18 Significant Accounting Policies and Notes to Accounts 18 Schedules 1 to 7 form 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 D.V.R.PRABHAKAR (Partner) Sd/- M. No. 072470 INAITULA BAIG Company Secretary Place : New Delhi Date : 23 /08 /2011
38
38 59th Annual Report Profit and Loss Account for the year ended 31st March, 2011 As at As at Sch 31st March, 2011 31st March, 2010 I. INCOME : ` in lakhs ` in lakhs ` in lakhs (1) From Works & Other Services 8 65214.44 61896.05 Less: Service Tax & VAT collections 2450.16 62764.28 (2325.50) (2) Other Income 9 3403.15 3804.38 Provisions with drawn 16 0.00 468.93 (3) Accretion to /(Decretion) in Work in Progress 10 (4829.50) (1052.80) Total 61337.93 62791.06 II. EXPENDITURE : (1) Materials Consumed 11 44151.76 34457.31 (2) Subcontract & Off-Loaded Jobs and Other Direct Expenses 12 7978.43 9438.82 (3) Pay and Benefits to Employees 13 25748.32 12989.27 (4) Other Expenses 14 2682.07 2784.95 (5) Interest & Finance charges 15 1434.64 5241.55 (6) Depreciation 767.73 645.75 (7) Provisions and Losses 16 7189.43 779.81 89952.38 66337.46 Less: Transfer to Other Accounts 427.85 512.11 89524.53 65825.35 Profit/(Loss) Before Extraordinary & prior period Items (28186.60) (3034.29) III. Grant in aid from GoI (FR) 45268.00 0.00 III. Prior Period Adjustments 17 562.78 345.98 Profit / (Loss) before taxation 16518.62 (3380.27) IV. Provision for : (1) Current Year MAT MAT liability written back 0.00 (3186.15) Income Tax for the year 4,482.60 0.00 MAT credit entitlement (4,482.60) 0.00 (2) Deferred Tax (Asset) / Liability 0.00 (426.55) (3) Deferred Tax (Asset) written off 11018.63 0.00 Profit / (Loss) after taxation 5499.99 232.43 Balance of Loss brought forward from previous year 98510.21 98742.64 Balance of Loss carried over to next year 93010.22 98510.21 Nominal value of equity share in Rupees 1000.00 1000.00 Earnings per Share ( Basic & Diluted) in Rupees 182 8 Significant Accounting Policies and Notes to Accounts 18 Schedules 8 To 18 form an Integral Part of Profit and Loss Account. 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 D.V.R.PRABHAKAR (Partner) Sd/- M. No. 072470 INAITULA BAIG Company Secretary Place : New Delhi Date : 23 /08 /2011 39
39 Hindustan Shipyard Limited Schedules forming part of the Balance Sheet as at 31st March, 2011 As at As at 31st March,2011 31st March, 2010 Schedule - 1 ` in lakhs ` in lakhs SHARE CAPITAL Authorised : 30,40,000 - Equity Shares of ` 1000 each 30,400.00 30,400.00 (Previous year 3040000 shares of ` 1000 each) Issued, Subscribed and Paid-Up : 30,199.22 30,199.22 (3019922 Equity Shares of 1,000 each fully paid-up) (previous year 3019922). Of the above shares, 27,285 equity shares were allotted as fully paid-up, pursuant to contracts without payment being received in cash 30,199.22 30,199.22
As at Addition during Withdrawn As at 31st March, 2010 the year during the year 31st March, 2011 Schedule - 2 ` in lakhs ` in lakhs ` in lakhs ` in lakhs RESERVES AND SURPLUS Capital Reserve 9.50 0.00 0.00 9.50
As at As at 31st March, 2011 31st March, 2010 ` in lakhs ` in lakhs Schedule - 3
SECURED LOANS Due to Indian Bank in: Term loan account 0.00 3,467.02 Cash Credit account 9319.82 6172.65 (Secured by Hypothecation of all the Fixed and Current Assets of the company) 9319.82 9639.67
As at As at 31st March,2011 31st March, 2010 Schedule - 4 ` in lakhs ` in lakhs
UNSECURED LOANS Loans from Government of India: Received during 1-4-1995 to 31.03.2004 0.00 5,080.00 Interest accrued and due on above 0.00 10,125.70 Received since 01.04.2004 0.00 9,907.00 Interest accrued and due on above 0.00 6,672.27 GoI Loan in perpetuity 37221.25 0.00 Inter-corporate loans from various Port Trusts 0.00 2,052.82 Term Loan from State Bank of India together with Interest accrued and due thereon 25546.00 25,546.00 ( Refer Note No.6 of Sch.18 B) 62,767.25 59,383.79
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40 59th Annual Report 11 1.74 1.72 0.62 0.80 0.00 in lakhs 76.11 26.85 55.94 25.33 10.66 95.80 16.71 As at ` 254.55 156.64 950.85 960.44 4242.37 6387.85 6877.15 31.03.10 Net Block lands to the extent of 6.2 acres, lands to the extent 78 910 Depreciation 6.87 0.00 297.49 247.68 0.000.00 0.000.60 0.00 0.00 0.00 4.435.58 1.72 4.49 28.520.00 0.80 0.001.93 0.07 0.02 0.00 271.56 0.00 49.33 34.04 70.53 0.04 47.950.38 6.17 1.74 0.00 14.78 0.000.00 509.39 178.52 0.00 95.76 24.95 139.82 0.00 year Adjustments 31.03.11 31.03.11 18.20 0.50 237.37 39.55 64.95 0.0018.65 1428.83 1240.10 0.00 394.2930.41 351.25 0.00 372.82 126.23 117.11 0.00 2636.10 833.74 506.49 215.56 8322.58 4628.77 645.75 725.31 14393.47 6877.15 775.70 216.13 14953.04 7683.79 For theFor / sales On to Up at As 6 0.00 4.43 Up to 27.92 46.02 34.04 44.91 375.64 178.14 219.67 290.62 265.98 139.82 342.41 509.35 31.03.10 2518.99 1363.88 8031.65 14473.03 14393.47 the year Sales /Ad-on As Gross Block 0.00 0.000.00 0.000.00 1.72 0.000.00 5.23 0.000.00 28.54 0.00 545.17 0.000.00 0.070.00 342.09 0.000.00 0.00 55.50 0.002.11 35.78 62.73 0.80 499.05 0.000.00 0.00 276.92 0.00 0.00 605.15 0.000.00 203.47 3469.84 0.00 139.82 34 5 903.21 225.90343.05 12951.33 0.00 745.54 344.61 0.00 2668.93 during justments 31.03.2011 1213.30 803.57 21270.60 1592.98 226.77 22636.81 the year during the year for Additions As on 31.03.10 21270.60 However, the respective lease rents are claimed by Visakhapatnam Port Trust and paid by Hindustan by Visakhapatnam Ltd. are claimed Shipyard Trust rents Port lease the respective However, 2. lakhs of Rs. 7.97 includes prior period amount the year for Depreciation Particulars Assets Tangible LandBuildings: landa) On freehold b) On leasehold land sidingsRailway Plant & Machinery & Fitout warfSlipways Drydock 2324.32 5.23 basinWet Furniture 1.72 12274.02 545.17 & launchesBoats 28.54 vehiclesMotor & Compound wallsRoads Other equpt. 402.49 of Buildings Electrification 342.09 499.05 35.78 Elec. Installations 55.57 well platformsBerth for 62.73 Building dock Assets Intangible shipbuilding for Software Tribon 275.61 203.47 605.15 Total 139.82 3469.84 Housing Estate, HospitalHousing Estate, & Previous yearPrevious 20860.87 Schedule - 5Schedule Fixed Assets 1 2 Note: 1. for are expired deeds which lease Lakhs (net block) for hold lands includes Rs. 80.70 Buildings / structures on lease
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41 Hindustan Shipyard Limited
As at As at 31st March, 2011 31st March, 2010 Schedule-6 ` in lakhs ` in lakhs ` in lakhs CURRENT ASSETS (a) INVENTORIES (As valued and certified by the management) Steel 4932.79 4156.12 Stores & Spares , equipment and other Materials 7507.81 7882.26 Timber 45.09 38.01 Materials-in-Transit and under inspection 6619.82 16999.04 Steel Cut Pieces on shop floor and Scrap (As per technical estimate) 290.21 104.82 19,395.72 29180.25 Less : Provision for : Obsolescence of materials 130.44 19.96 Difference between Bin cards & PSL balances 223.81 354.25 223.81 19,041.47 28,936.48 Work-in-Progress: Ship Building under Construction 14,123.77 18,953.28 33,165.24 47,889.76 (b) SUNDRY DEBTORS (Unsecured) Debts outstanding for more than 6 months: Considered good 2,061.67 2,386.00 Considered doubtful 1,531.24 1,702.89 3,592.91 4,088.89 Other debts, considered good 11,898.57 8,620.61 15,491.48 12,709.50 Less: Provision for doubtful debts 1,531.24 1,702.89 13,960.24 11,006.61 (c) CASH AND BANK BALANCES Cash on Hand 1.32 2.29 Balances with scheduled banks in: Term and other Deposit accounts 30442.45 4430.74 Current accounts 142.43 30584.88 1598.53 30586.20 6031.56 (d) OTHER CURRENT ASSETS Interest Accrued on term deposits 55.86 101.78 Income Accrued in respect of Ship Building, Ship Repairs & Submarine Retrofit activities 10,847.49 6,105.58 Income Accrued in respect of Off-Shore Platforms 5,286.25 5,286.25 Less : Directly Payable to Third Parties (5,139.33) 146.92 (5,139.33) (Contra vide schedule 7A) 11,050.27 6,354.28
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42 59th Annual Report
As at As at 31st March, 2011 31st March, 2010
(e) LOANS AND ADVANCES ` in lakhs ` in lakhs ` in lakhs Advances recoverable in cash or kind or for value to be received from: Employees 38.88 118.88 Suppliers of materials & services 13,975.42 11,284.93 Less: Adjustable to SR Liabilties (contra) (356.83) (402.92) Others 632.24 793.47 Prepaid Expenses 178.97 67.94 14,468.68 11,862.30 Income Tax deducted at source 1,627.60 1,352.18 Advance tax paid 4,575.56 0.00 MAT Credit entitlement 4,510.60 28.00 Balances with Customs, Port Trust and Other Government authorities 317.03 329.56 25,499.47 13,572.04 Less : Provision for Doubtful Advances 97.59 97.55 25,401.88 13,474.49
Schedule-7 CURRENT LIABILITIES AND PROVISIONS A. Liabilities : Sundry Creditors 22,217.14 27,445.62 Less: Adjustable to SR Advances (contra) (356.83) (402.92) Less : Directly receivable from third parties (Contra vide Schedule 6(d)) (5,139.33) (5,139.33) 16,720.98 21,903.37 Guarantee Fees payable to Government of India 0.00 6,427.93 Interest accrued but not due on unsecured loans 0.00 34.84 Advances from customers including interest thereon 59,847.45 54,801.39 Other Liabilities 8,201.71 6,915.95 Security Deposits from Employees, Trainees. Contractors and Others 337.99 225.26 Temporary overdraft from banks(representing cheques issued over and above the book balance) 611.27 9.09 85,719.40 90,317.83 B. Provisions for : Gratuity 11,337.75 5,216.06 Leave Encashment 2,441.25 1,778.52 Liquidated damages 584.16 466.67 Provision for contingencies 193.95 0.00 Future losses 8,083.75 1,519.29 Guarantee Repairs 959.24 586.62 Income Tax 4,482.60 3,292.57 28,082.70 12,859.73
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43 Hindustan Shipyard Limited
As at As at 31st March, 2011 31st March, 2010
Schedule-8 ` in lakhs ` in lakhs ` in lakhs INCOME FROM WORKS AND OTHER SERVICES Income from: Shipbuilding Works - Contractual Income 24,197.88 19,962.15 - Government subsidy 4,951.72 29,149.60 5,398.38 Ship Repairs: Repair works 26,661.77 24,974.32 Dry dock hire charges 109.05 305.78 Wet basin hire charges 345.71 390.40 Other services 621.41 27,737.94 933.51 Submarine Retrofit 8,326.90 9,931.51 65,214.44 61,896.05 Schedule - 9 OTHER INCOME Interest Received from banks & others (net of interest reimbursable to customers) 235.80 570.43 Foreign Exchange variation 229.28 1713.36 Sale of scrap, stores & disposable materials 715.76 458.31 Less: Excise duty & VAT 30.46 685.30 (25.98) Rent received 96.12 79.72 Less: Service Tax 5.61 90.51 (4.89) Fines and forfeitures 362.32 232.05 Miscellaneous Receipts 84.06 203.82 Profit on sale of Assets 100.65 40.93 Provisions of earlier years no longer required 1615.23 385.54 VAT refund 0.00 151.09 3403.15 3804.38 Schedule -10 ACCRETION TO/(DECRETION IN) WORK-IN-PROGRESS Closing work-in-progress: Ship Building under construction 14123.77 18953.28 Opening work-in-progress: Ship Building under construction 18953.27 20006.08 Accretion to/(Decretion in) work-in-progress (4829.50) (1052.80)
Schedule -11 MATERIALS CONSUMED Steel 4,898.08 7,269.32 Stores & Spares 769.69 1,936.50 Timber 29.03 31.11 Direct Materials, Machinery & Equipment used in Ship Construction 15,844.05 9,473.17 Shiprepair 15,684.73 8,006.77 Submarine Retrofit 6,520.52 6,820.54 43,746.10 33,537.41 Add: Stores procurement expenses 405.66 919.90 44,151.76 34,457.31
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44 59th Annual Report
As at As at 31st March, 2011 31st March, 2010 Schedule -12 ` in lakhs ` in lakhs ` in lakhs SUB-CONTRACTS & OFF-LOADED JOBS Sub contract & off-loaded job expenses in : Ship Construction 2,636.43 3,112.83 Ship Repairs 2449.02 3921.30 Submarine Retrofit 468.56 871.03 Other Direct Expenses in* : Ship Construction 504.80 390.93 Ship Repairs 655.87 277.95 Submarine Retrofit 1,068.80 782.22 Builders Risk Insurance in Ship Constuction 194.95 82.56 7,978.43 9,438.82 * includes 372.61 lakhs provision for Guarantee Repairs
Schedule -13 PAY AND BENEFITS TO EMPLOYEES Salaries, Wages, Allowances etc., 11,081.17 9,797.19 Wage revision arrears 5,143.33 375.78 Contribution to Provident Fund and other funds 1,050.02 960.44 Gratuity 6,851.24 758.16 Leave Encashment 1,029.53 559.09 Expenses on Training, Stipend etc. 81.57 100.55 Employees Welfare Expenses 511.46 438.06 25,748.32 12,989.27 Schedule-14 OTHER EXPENSES Power and Fuel (net of recoveries) 592.06 582.49 Water Charges (net of recoveries) 48.68 93.61 Rates and taxes (including customs duty on scrap sales) 117.06 53.49 Fire and Other Insurance 170.00 127.60 Rent 100.18 99.13 Repairs and Maintenance to : a) Plant and Machinery 693.82 830.20 b) Buildings 150.73 111.92 e) Other Assets 64.53 909.08 48.70 Printing and Stationery 4.90 2.22 Local conveyance charges 92.90 71.20 Travelling Expenses 53.11 38.17 Communication expenses 34.28 28.76 Advertisement and Publicity 49.12 35.48 Salaries and other Expenses of Customs Staff 102.08 49.09 Demurrage Charges 73.32 12.59 Directors’ Fees and Expenses: A) Directors’ Fees 0.12 0.06 B) Travelling Expenses 23.09 23.21 24.77 Auditors’ Remuneration : Statutory Audit 1.55 1.54 Expenses 0.10 1.65 0.36 Miscellaneous Expenses 310.44 573.57 2682.07 2784.95
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45 Hindustan Shipyard Limited
As at As at 31st March, 2011 31st March, 2010
` in lakhs ` in lakhs ` in lakhs Schedule-15 INTEREST & FINANCE CHARGES Interest on : Government Loans 0.00 3213.47 Bank term loans & Cash Credit 1056.99 1008.12 Inter-corporate loans from various Port Trusts 175.85 170.28 Others 75.19 35.17 Guanratee fees payable to Government of India 0.00 510.92 Bank Charges 126.61 303.59 1434.64 5241.55 Schedule-16 PROVISIONS AND LOSSES Provisions made: Obsolescence of Materials 110.48 0.00 Reduction in SR Bills 94.43 332.61 Assets written off 0.00 49.85 Future losses 6,564.47 0.00 Liquidated Damages 186.23 209.64 Contingencies 193.95 0.00 Doubtful Debts 16.17 130.56 Losses: Reductions in SR Bills 23.34 55.84 Stores written off 0.03 0.00 On Sale of Assets 0.33 1.31 7,189.43 779.81 Provisions withdrawn: Future losses 0.00 468.93 0.00 468.93
Schedule-17 PRIOR PERIOD ADJUSTMENTS A INCOME Freight charges 20.47 0.00 Demurrages 0 0.29 20.47 0.29 B EXPENDITURE SC Direct Expenses 103.69 239.43 SR Direct Expenses 0.00 8.20 RF Direct Expenses 0.00 1.73 GoI Guarantee fee 69.52 0.00 Materials & Freight 18.13 45.56 Interest 176.06 0.00 Taxes & Duties 138.67 1.23 Repairs and Maintenance 8.88 7.28 Rent 24.23 0.00 Others 44.07 42.84 583.25 346.27 Net Expenditure / (Income) 562.78 345.98
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46 59th Annual Report Schedule – 18 Notes Forming Part of the Accounts for the year ended 31st March 2011 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. 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 to the extent approved and sanctioned by the Government and the cost of installation/ erection as applicable. 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) In respect of Ship Building, the uninstalled Machinery / Equipment acquired exclusively for the vessels is reckoned as Work-in-Progress at lower of cost or realisable value. v) 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 acquired for specific ship, direct labour, direct expenses and general overheads excluding administrative overheads, interest, depreciation 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, 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.
47
47 Hindustan Shipyard Limited 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. 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. 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.
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48 59th Annual Report
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– 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. 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.
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49 Hindustan Shipyard Limited B. NOTES ON ACCOUNTS (` in lakhs) 2010-11 2009-10 1 Contingent liabilities a. Irrevocable letters of credit outstanding 4639.71 10583.11 b. Counter guarantees given to banks for guarantees issued on behalf of the company 12996.40 5680.48 c. Estimated amount of contracts remaining to be executed on capital account and not provided for 0 291.51 d. Demands raised against the company by various authorities, contested at various courts, appellate authorities etc and not provided for: i) Property tax on commercial complex for the years from 1984-85 to 1994-95. 13.39 13.39 ii) Penal interest on belated remittances of Provident Fund contributions during the period from May 2002 to Feb., 2005, contested u/s 7(i) of EPF & 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 to 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. 109.78 144.78 iii) (a) ESI dues in respect of ‘C’ series workmen for the period from 1-4-1998 to 30-9-2000 together with interest thereon (`6.64 lakhs paid under protest grouped under deposit recoverable) 70.48 66.49 (b) ESI dues in respect of temporary workmen for the period from April, 1998 to Oct., 1999, contractors contribution for the period from Apr., 1985 to March, 1993. 180.24 180.24 iv) Central Excise duty on P-BDE jackets manufactured and delivered to ONGC. The amount has been paid to Excise authorities in 2010-11 0 114.51 v) Service tax demand in respect of INS Sindhukeerti 2081.30 2081.30 vi) Demands of various suppliers of goods and services 457.00 272.00 vii) Non Agricultural Land Assessment tax demands for the year 2000-01 4.54 4.54 viii) Demands in respect of service matters of employees having financial impact. 1381.92 52.46 Total 4298.65 2929.71 e. Claims against the company, which are under arbitration and not provided for: i) Counter –Claims of ONGC towards liquidated damages, penal interest and interest on interest in respect of construction of well platforms (net of provision) 8638.00 8632.00 ii) Claims of Essar Oil Limited (EOL) towards OPF works (net of provision made of `4370.33 lakhs and counter claim of HSL on ONGC of `769 lakhs). 9196.40 8609.00 ii) Recognition of income in earlier years towards escalation and extra jobs for VC 1120, pending finalization of arbitration award. 129.15 129.15 iv) Recognition of income (net of provision) in earlier years towards mark-up on materials procured and works executed in respect of offshore platforms for ONGC, pending finalization of arbitration. 669.39 669.39
T o t a l 18632.94 18039.54
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50 59th Annual Report
In respect of items mentioned under (d) and (e) above, the Company has been advised by the Counsel that said demands and claims are not sustainable in law.
2 a) On rejection of it’s claims towards L.D. and other claims by HSL, 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.
b) In respect of Vessel No. VC 11118, VC 11136 and VC 11137 which were delivered and VC 11138 to VC 11141 which are under construction, no provision towards of LD is made, since the same is not applicable as per Contracts. 11443.00 10519.00 3 a) Liquidated damages on 5 Nos. Inshore Patrol Vessels which are under construction for Indian Coast Guard has been adjusted in the contract price in 2010-11. 0 1007.75 b) No provision has been made in respect of Liquidated Damages for vessels INS Sandhayak & INS Kumbhir 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. 242.78 0 4 The State Government of Andhra Pradesh has agreed for a full and final settlement of sales tax arrears up to 31.03.1999, amounting to `4659 lakhs and interest thereon of ` 7614 lakhs respectively, by payment of `500 lakhs subject to finalization of Financial Restructuring (FR) package by GOI. The FR package including the said amount of `500 lakhs has been sanctioned by the Government in 2010-11. In line with the above decision, the said amount of `500 lakhs has been paid to Commercial Tax Dept. in 2010-11. 5 Govt. of India sanctioned financial restructuring of HSL amounting to `824.90 crores vide letter No.PC II to 8(2)/2009/HSL/D(SY), dt.23.03.2011 which consists of i) conversion of GoI loan and interest and Guarantee fee amounting to `372.22 crores as loan in perpetuity at zero interest. ii) Grants-in-aid amounting to `452.68 crores to clear the legacy liabilities. Necessary accounting adjustments in respect of (i) above were made in the year 2010-11, disbursement of legacy liabilities in respect of (ii) above was in progress as on 31.03.11 and was completed by 06.06.11. 6 The Financial Restructuring package sanctioned by GoI includes an amount of `255.50 crores to liquidate SBI liability. HSL requested SBI to confirm that payment of the said amount is full and final settlement of the issue. SBI vide their letter dt.03.06.11 have informed their willingness to accept the payment of `255.46 crores as full and final settlement subject to the condition that such payment (full amount) should be made by 06.06.11. Accordingly, HSL paid the said amount to SBI on 04.06.11. In view of the said settlement no provision towards interest has been made in the accounts for the year 2010-11.
7. 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) 2010-11 2009-10 Employer’s Contribution to Pension Fund 186.97 198.68 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.
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51 Hindustan Shipyard Limited I. Reconciliation of opening and closing balances of Defined Benefit obligation (` in Lakhs)
Details Gratuity Earned Leave Sick (Funded) Encashment Leave (Unfunded) (Unfunded) Defined Benefit obligation at beginning of the year. - Current Year. 6009.29 1307.91 470.61 (Previous year) 5504.88 1080.88 380.72 Interest Cost - Current Year 451.56 89.96 0 (Previous year) 392.46 70.45 0 Current Service Costs - Current Year 572.96 211.76 141.87 (Previous year) 280.86 151.77 89.89 Benefits Paid - Current Year (729.55) (366.80) 0 (Previous year) (316.11) (242.17) 0 Actuarial loss/(gain) on obligation - Current Year 997.54 585.94 0 (Previous year) 147.20 246.98 0 Defined Benefit obligation at year end - Current Year 12187.17 1828.77 612.48 (Previous year) 6009.29 1307.91 470.61
II. Reconciliation of opening and closing balances of fair value of plan assets (` in Lakhs) Details 2010-11 2009-10 Fair value of plan assets at beginning of the period. 793.23 730.88 Expected return on plan assets 67.42 60.66 Contribution 729.55 316.11 Benefits paid (729.55) (316.11) Actuarial (loss)/gain on obligation (balancing figure) (11.23) 1.69 Fair value of Plan Assets as at the end of the period 849.42 793.23
III. Reconciliation of fair value of assets and obligations As at 31/03/2011 (` in Lakhs)
Gratuity Leave Sick Leave Encashment (Unfunded) (Unfunded) Fair value of plan assets - Current Year 849.42 0 0 (Previous year) 793.23 0 0 Present value of obligation - Current Year 12187.17 1828.77 612.48 (Previous year) 6009.29 1307.91 470.61 Amount recognized in Balance Sheet - Current Year 11337.75 1828.77 612.48 (Previous year) 5216.06 1307.91 470.61
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52 59th Annual Report
IV. Expenses recognized during the year (in the statement of Profit & Loss Account) (` in Lakhs)
Description Gratuity Leave Sick Leave (Funded) Encash-ment (Unfunded) (unfunded) Current Service Cost - Current Year 572.96 211.76 141.87 (Previous year) 280.86 151.77 89.89 Interest Cost - Current Year 451.56 89.96 0.00 (Previous year) 392.46 70.45 0.00 Expected return on plan assets - Current Year 67.42 0.00 0.00 (Previous year) (60.66) 0.00 0.00 Actuarial (gain)/loss - Current Year 1008.77 585.94 0.00 (Previous year) 145.51 246.98 0.00 Expenses recognized in the statement of P&L a/c - Current Year 6851.24 887.66 141.87 (Previous year) 758.17 469.20 89.89
V. Investment Details (Percentage invested) Description Gratuity as on Gratuity as on 31.03.11 31.03.10 GoI Securities 0.00 0.00 Special Deposit Scheme 15.00 16.00 Others (T.D.R.s) 85.00 84.00 Total : 100.00 100.00
VI. Principal Actuarial Assumptions Gratuity (funded)(%) Leave Encashment (Unfunded)(%) 31.03.2010 31.03.2011 31.03.2010 31.03.2011 Discount Rate 8.00 8.00 8.00 8.00 Salary escalation rate 10.00 11.00 10.00 11.00 Attrition rate 1.00 1.00 1.00 1.00 Expected rate of return on plan assets 8.50 8.65 0.00 0.00
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. 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.
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53 Hindustan Shipyard Limited
(` in lakhs)
2010-11 2009-10
Employer’s Contribution to Provident Fund 863.68 761.77
The Company’s Provident Fund is exempted under Section 17 of Employees’ Provident Fund Act, 1952. The conditions for grant of exemption stipulates the employer shall make good deficiency, if any, in the interest rate declared by the Trust vis-à-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.
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54 59th Annual Report
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 the Institute of Chartered Accountants of India is given here under: ` in lakhs
Ship Ship Retrofit Un-allocated Total building repairs
Segment Income:
Sales 29149.46 27737.94 8326.90 0.00 65214.30
WIP (Accretion/Decretion) (4829.50) 0.00 0.00 0.00 (4829.50)
Other Income 465.14 863.78 791.25 1282.98 3403.15
Total Income 24785.10 28601.72 9118.15 1282.98 63787.95
Segment Expenditure:
Materials & Direct Expenses incl. taxes 26012.76 19409.43 8771.17 6.24 54199.60
Direct Labour 2653.67 327.11 762.42 0.00 3743.20
Total Segment expenditure 28666.43 19736.54 9533.59 6.24 57942.80
Segment Result (3881.33) 8865.18 (415.44) 1276.74 5845.15
Overheads 6970.29 2691.78 2545.14 14635.11 26842.32
Provisions and Adjustments 6896.60 340.83 36.83 477.96 7752.21
Net Segment Result (17748.22) 5832.57 (2997.40) (13836.33) (28749.38)
FR grant from GoI 45268.00 45268.00
MAT for the year (4482.60) (4482.60)
MAT Credit entitlement 4482.60 4482.60
Deferred Tax (11018.63) (11018.63)
Total Result (17748.22) 5832.57 (2997.40) 20413.04 5499.99
Other information
Segment Assets 44077.80 23476.33 17195.52 38338.06 123087.71
Segment Liabilities 65893.35 34565.06 41839.43 73800.08 216097.92
Capital Expenditure 0.00 0.00 0.00 1592.98 1592.98
Depreciation 507.02 46.22 134.78 79.71 767.73
Non-cash expenditure other than Dep. 0.00 0.00 0.00 0.00 0.00
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55 Hindustan Shipyard Limited
(` in lakhs) 2010-11 2009-10
9 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) Cmde. Naresh Kumar, IN (Retd), Chairman & Managing Director till 31.12.2010. ii) Rear Adml. Chandra Sekhar, IN (Retd), Chairman & Managing Director of M/s GRSE Ltd., Kolkata is holding the post of Chairman & Managing Director of company as additional charge from 01.01.11. iii) Shri.Rakesh Mahajan, Director (Finance & Commercial) b) Details of transactions carried out with the above stated related parties: Remuneration paid during the year 27.21 25.23
10 a) Net profit/(Loss) as per profit and loss account (`In lakhs) 5499.99 232.43 b) Weighted average number of equity shares used as Denominator for calculating EPS 3019922 3019922 c) Earnings per share: Profit/(Loss) Basic & Diluted in ` 182 8
11 Deferred tax asset of `11018.63 lakhs as on 31.03.10 is written off during 0 11018.63 the year as per the expert opinion of Institute of Chartered Accountants of India.
12 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.
13 The estimated cost of completion of vessels under construction has been revised to `124876 lakhs as at 31.3.2011 from `127906 lakhs as at 31.3.2010. 124876 127906
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56 59th Annual Report 14. Information under Schedule VI to the Companies Act, 1956 i) Licensed & Installed Capacities and Actual Production: 2010-11 2009-10 Licensed Capacity A Ship Construction Not Applicable Not Applicable B Well Platforms 2 Well Platforms 2 Well Platforms Per annum (8000 MT of Per annum (8000 MT of structural fabrication) structural fabrication) Installed Capacity A i) Ship Construction 6.5 Pioneer Class vessels of 6.5 Pioneer Class vessels of 21500 DWT each. 21500 DWT each. ii) Rated Capacity as Reckoned 3.5 Pioneer class vessels of 3.5 Pioneer class vessels of by consultant 21500 DWT each. 21500 DWT each. B Well Platforms 2 Well Platforms per annum 2 Well Platforms per annum Actual Production A Ship Construction 2.88 Pioneer class vessels 3.14 Pioneer class vessels (287.69 Standard Pioneer Units) (314.27 Standard Pioneer Units) B Well Platforms Nil Nil Capacity Utilization* A Ship Construction i) At 6.5 Vessels 44% 48% ii) At 3.5 Vessels 82% 90% B Well Platforms Nil Nil
*inclusive of outsourcing and submarine works. ii) Materials Consumed: ` in lakhs
Description 2010-11 2009-10 Unit Quantity Value Quantity Value Steel M.T 15553 4898.08 12860 7269.32 Pipes Meters 13000 33.45 12717 45.38 Paints Liters. 140082 250.19 25652 55.56 Pipe Fittings and others Nos. 38010 134.89 28741 157.77 Ship Machinery and Equipt. 15794.36 9479.08 Ship Repair Materials 13343.61 8000.86 Retrofit Materials 6520.52 6820.54 Others 2771.00 1708.90 Total 43746.10 33537.41
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57 Hindustan Shipyard Limited iii) Break up of Materials Consumed: ` in lakhs
2010-11 2009-10 i) Value of all Imported Materials including components and spare parts consumed during the year 38330.31 30005.57 ii) Value of all Indigenous Materials including components and spare parts consumed during the year 5415.79 3531.83 iii) Percentage of item (i) to total consumption 88 90 iv) Percentage of item(ii) to total consumption 12 10 iv) Expenditure in Foreign Currency a) i) Royalty, Know-how and Professional Consultancy fees 0.00 0.00 ii) Travelling Expenses 0.00 0.00 iii) Others 586.69 1659.38 b) CIF value of imported materials , components & spare parts and capital goods. 29888.91 40620.08 v) Earnings in Foreign Currency from ship repair activity 11640.90 14892.67
vi) Disclosure of information in respect of Ships under construction as per Accounting Standard-7: ` in lakhs Particulars 50T Tugs IPVs 53 KBulkers 50 T Tugs 11162-64 11154-58 11138-41 11160-61 for Navy For VPT 1 Contract Revenue Recognized up to 31-03-2011 124.80 16779.31 26560.36 3777.80 2 Contract Expenses Recognized 131.06 24651.16 33241.88 3481.14 3 Recognized Profits / (Losses) (-6.26) (-7871.85) (-6681.52) 296.66 4 Expected Losses Recognized 700.76 1460.73 5922.27 0 5 Recognized Profits / (Losses) (-707.02) (-9332.58) (-12603.79) 296.66 6 Advances Received 1548.02 12469.49 24122.81 6398.32 7 Costs Relating to Future Activity 14712.12 4865.83 40187.51 3604.83 8 Progressive Billing 1548.02 13893.95 24465.86 6398.32 9 Gross Amount due from Customers 0.00 1424.46 343.05 0.00 10 Gross Amount due to Customers 0.00 0.00 0.00 0.00
58
58 59th Annual Report vii) Details of Remuneration to Chairman & Managing Director and other whole-time Directors: (` in lakhs) S.No Particulars 2010-11 2009-10 i. Salary and Allowances 20.84 20.13 ii. Contribution to Provident Fund & Group Gratuity Scheme. 3.76 3.48 iii. Reimbursement of Entertainment Expenses 2.49 1.55 iv. Reimbursement of Medical Expenses 0.06 0.01 v. Value of Perquisite in respect of use of car (as per I.T. rules) 0.06 0.06 Total 27.21 25.23 15 Provision for Income Tax for ` 44.82 crores has been made in accordance with Section 115JB of the Income Tax Act, 1961. However, Management expects that the company would be in a position to pay Normal tax for availing it as MAT credit within the period specified under the Income Tax Act, 1961 and hence MAT credit for the same amount has been recognized. 16 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. 17 The reconciliation of balances as per priced stores ledger and Bin Cards is a continuous process 18 Certain Advances and Provisional Liabilities for Purchases remain unadjusted, pending link up between the same. 19 Letters have been issued to all the customers seeking confirmation of balances as at 31.03.2011, which are still to be received. 20 Consequent upon the observations of Comptroller & Auditor General of India during the course of Audit u/s 619(4) of the Companies Act, 1956, the accounts and the notes forming part of accounts as approved by the Board of Directors in the 362nd boarding meeting held on 27.06.2011 have been revised. These changes has resulted in decrease in profit by Rs.150.67 lakhs, decrease in current assets by Rs.150.67 lakhs, a disclosure in notes forming part of accounts at no.3(b), modification in presentation of deferred tax asset in P & L A/c and change in allocation of expenditure of Rs.1.04 crores in segment report at note no.8.
21 Previous year’s figures have been regrouped / rearranged wherever necessary.
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 D.V.R.PRABHAKAR (Partner) Sd/- M. No. 072470 INAITULA BAIG Company Secretary Place : New Delhi Date : 23 /08 /2011 59
59 Hindustan Shipyard Limited Balance Sheet Abstract and General Business Profile of Hindustan shipyard Limited, Visakhapatnam REGISTRATION DETAILS REGISTRATION NO. 2064 STATE CODE: 01 BALANCE SHEET DATE : 31.03.2011 CAPITAL ISSUED DURING THE YEAR ` in thousands Public Issue NIL Bonus Issue NIL Rights Issue NIL Private Placement NIL Issued to Government of India NIL POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS ` in thousands Total Liabilities 21,609,789 Total Assets 21,609,789 SOURCES OF FUNDS: Paid-up Capital 3,019,922 Reserves and Surplus 950 Secured Loans 931982 Unsecured Loans 6,276,725 10,229,579 APPLICATION OF FUNDS: Net Fixed Assets 892,384 Deferred Tax Asset 0 Net Current Assets 36,173 Accumulated Loss 9,301,022 10,229,579 PERFORMANCE OF THE COMPANY ` in thousands Turnover (including other income) 6133793 Total Expenditure 4481931 Profit / (Loss) before tax 1651862 Profit / (Loss) after tax 549999 Earnings per share in Rupees (face value `1000/-) 182 Dividend NIL GENERIC NAMES OF THREE PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY Item Code Product Description 8901 1001 Ships 8901 9001 Bulk Carriers 8904 0000 Tugs
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 D.V.R.PRABHAKAR (Partner) Sd/- M. No. 072470 INAITULA BAIG Company Secretary Place : New Delhi Date : 23 /08 /2011 60
60 59th Annual Report CASHFLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2011 ` in lakhs
Year ended Year ended 31st March 2011 31st March 2010 A. Cash flow from operating activities: Net Profit/(loss) before Extraordinary & (28186.60) (3034.29) Prior period items Adjustments for: Depreciation 767.73 645.75 Interest paid 1434.64 5241.55 Interest received (235.80) (570.43) Loss/(profit) on sale of fixed assets (100.32) (39.62) Operating Cashflow before working capital changes & Extraordinary & Prior Period items (26320.35) 2242.96 Prior Period items: Net Expenditure 562.78 345.98 Operating Cashflow before working capital changes, Extraordinary & after Prior Period items (26883.13) 1896.98 Adjustments for working capital changes: Inventories 14724.53 (10674.45) Trade and other receivables (19577.01) (2895.75) Trade and other payables 10624.55 6370.64 Cash generated from operation (A) (21111.06) (5302.58) B. Cashflow from Investing acitivities: Purchase of fixed assets (1585.01) (1213.30) Capital Work-in-progress 6.98 (731.09) Sale of fixed assets 110.96 117.87 Interest received 235.80 570.43 Net Cash from investing operation (B) (1231.27) (1256.10) C. Cashflow from financing activities: Proceeds from Share Capital 0.00 0.00 Proceeds from Borrowings from GOI & Banks 3063.61 6284.69 Grant in aid from GoI 45268.00 0.00 Interest paid (1434.64) (5241.55) Net Cash from financing operation (C) 46896.97 1043.14 D. Net Increase in Cash & Cash Equivalent (A)+(B)+(C) 24554.64 (5515.54) Cash and cash equivalent at the beginning of the year 6031.56 11547.09 Cash and cash equivalent at the end of the year 30586.20 6031.56
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 D.V.R.PRABHAKAR (Partner) Sd/- M. No. 072470 INAITULA BAIG Company Secretary Place : New Delhi Date : 23 /08 /2011 61
61 Hindustan Shipyard Limited 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 2011 (` in lakhs)
Description 2010-11 2009-10 Details Details Total Details Details Total Schedule -22 EXPENDITURE ON TOWNSHIP AND RESIDENTIAL QUARTERS Administration & Maintenance: Salaries, Wages & Other Benefits 260.41 190.11 Housing Estate Site Rent 14.13 14.13 Property Tax on Residential Buildings 2.09 5.14 Electricity and Water Charges 137.73 172.04 Repairs and Maintenance 65.45 53.74 Colony Security 54.16 41.95 Miscellaneous Expenditure 1.98 535.95 2.11 479.22 Depreciation 11.16 9.90 547.11 489.12 Less: Income-Rent 90.51 74.83 Electricity and Water Charges 99.30 189.80 357.30 80.09 154.92 334.20 Expenditure on Social Overheads: Schools and Educational Facilities 47.25 51.56 Less: Educational Grant -43.03 4.22 37.44 14.12 On Medical facilities 559.37 459.68 On Subsidised Canteen 110.05 85.91 On Subsidised lunch for Officers, Staff and Workmen 198.54 308.58 197.43 283.34 On Subsidised transport : Boats and launches 46.44 39.65 On Social & Cultural Activities 0.56 919.16 0.56 797.35 1276.46 1131.55 Expenditure on Public Relations and Publicity: Salaries 10.34 8.37 Publicity 1.44 8.57 11.78 16.94
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 `.169.59 lakhs as on 31.03.2011) 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/- Sd/- INAITULA BAIG RAKESH MAHAJAN R Adm N K MISHRA, IN (Retd) Company Secretary Director Chairman and Managing Director (Finance & Commercial) Place : New Delhi Date : 23 /08 /2011
62
62 59th Annual Report 1.72 1.26 0.96 0.36 1.41 As on 175.04 180.75 190.64 in lakhs) ` 31.03.2010 ( NET BLOCK Year Adjustment 31.03.2011 31.03.2011 0.000.29 0.000.00 0.000.03 0.000.00 0.00 1.72 25.34 0.00 17.459.90 0.00 0.97 3.12 0.96 19.83 0.00 0.33 1.41 381.38 180.74 For theFor On sales/ Uptoon As 10.83 0.00 326.78 164.21 11.16 0.00 392.53 169.59 0.00 3.09 Upto 25.05 17.45 19.83 381.37 371.48 315.95 31.03.2010 For and on behalf of the Board of Directors and on behalf of the Board For
year djustment 31.03.2011 ROSS BLOCK DEPRECIATION (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 0.00 18.41 0.00 0.00 0.00 3.45 21.24 0.00 562.12 562.12 Additions Sales/ on As during the A 3.45 As on 562.12 31.03.2010 CAPITAL OUTLAY ON TOWNSHIP RESIDENTIAL QUARTERS FOR PROVIDING SOCIAL AMENITIES FOR PROVIDING RESIDENTIAL QUARTERS ON TOWNSHIP OUTLAY CAPITAL walls etc. 26.31 Sd/- Sd/- Sd/- INAITULA BAIG RAKESH MAHAJAN R Adm N K MISHRA, IN (Retd) quipment Company Company Secretary Director Chairman and Managing Director PARTICULARSLandBuildings & compound Roads Electrical InstallationsHospital E G VehiclesMotor Total 18.41 490.99 1.72 21.24 Previous YearPrevious 562.12 Place : New Delhi /2011 : 23 /08 Date
63
63 Hindustan Shipyard Limited 3.62 0.10 0.00 0.00 76.84 93.20 12.40 372.21 226.37 255.46 149.53 301.99 930.10 in crores) 1138.02 1141.64 (628.11) ` ( 2006-07 2007-08 2008-09 2009-10 2010-11 4 6.83 70.47 89.78 68.24 96.40 6.54) (1012.85) (706.92) (566.41) (685.44) (683.11) 332.38 619.00 808.20 818.72 767.02 847.57 166.90 167.90 169.29 177.55 192.14 208.61 212.71 03.43 1155.46 1163.35 1157.16 856.23 847.42 987.43 985.10 646.22 653.72 661.22 700.99 331.14 248.71 283.16 317.84 FINANCIAL POSITION AND PERFORMANCE OF THE COMPANY 6 304.13 307.35 407.00 676.98 991.42 933.39 999.93 1031.78 3.06 48.72 44.63 41.94 39.31 44.53 54.27 63.88 68.78 0.10 0.10 0.10 0.10 0.100.00 0.10 0.00 0.10 0.00 0.10 0.00 0.10 0.00 109.01 102.36 105.92 110.18 290.22 290.22 290.22114.23 290.22 118.67 255.46 122.27 255.46 125.96 255.46 129.98 255.46 133.02 255.46 137.87 144.73 143.93 114.31 121.81 129.31 136.81 144.31 149.31 281.01 301.99 301.99 2001-02 2002-03 2003-04 2004-05 2005-06 (111.24) (88.36)(991.58) (115.09) (981.62) (74.62) (1026.15) (57.98) (102 (183.22) (114.67) (232.91) (184.21) isions 333.7 tion India Surplus Sources of Funds: Sources up Capital Paid and Reserves LoansSecured Loans and Interest: Unsecured of IndiaGovt. Bank of State OthersTotal of Funds: Application 0.00 BlockGross Cumulative Deprecia Less: 637.68 FixedNet Assets 0.00Capital Work-in-Progress Asset Tax Deferred 6.26 AssetsCurrent 6.08 Liabilities and Prov Current 1048.39 Asset Current Net 6.4 167.29 0.68Cumulative Loss 1064.43 6.08 5 Total 167.39 1085.69 * Worth 0.64Net 6.08 1130.87 222.52 0.69 36.08 1139.01 215.77 1105.89 830.57 31.32 0.20 192.26 11 895.61 24.09 0.52 1048.39 929.48 1064.43 20.55 4.02 992.32 1085.69 20.53 1022.96 1130.87 6.23 20.53 1139.01 5.16 830.57 12.47 895.61 929.48 992.32 1022.96 BALANCE SHEET: BALANCE * Net Worth = Paid up Capital + Free Reserves - Accumulated Losses - Accumulated up Capital + Free Reserves = Paid Worth * Net
64
64 59th Annual Report 5.63 0.00 7.68 0.00 83.27 79.78 26.82 55.00 34.03 24.50 14.35 44.83 71.89 (4.28) 257.48 277.38 452.68 441.52 291.49 165.19 110.19 (48.29) (44.83) in crores) (265.46) ` ( 9.47 139.94 159.95 202.15 194.17 253.61 9.24 7.50 21.75 47.01 26.540.00 84.26 0.00 38.14 0.00 53.60 0.00 41.31 0.08 0.00 0.00 12.11 12.38 14.23 15.50 19.12 25.91 31.03 27.85 FINANCIAL POSITION AND PERFORMANCE OF THE COMPANY 1.937.99 3.20 16.58 2.78 19.28 4.29 8.48 8.59 14.030.00 13.490.00 45.15 20.37 0.00 0.00 8.740.00 28.68 0.00 14.07 0.00 0.00 23.25 0.00 18.67 0.00 0.00 0.00 0.00 0.00 78.27 0.00 0.00 5.49 0.00 0.00 6.85 0.00 2.52 (31.86) 0.00 0.00 0.00 59.88 68.68 68.80 135.1224.6364.05 87.90 17.38 72.42 93.02 24.97 77.78 108.46 39.65 77.88 144.13 43.6016.56 266.04 82.67 80.16 92.64 8.63 89.88 (46.52) 80.91 62.10 126.93 1.87 94.39 129.89 15.19 308.95 73.81 (79.31) 25.07 (15.42) 2.46(15.42) (52.03) 2.46 (7.89) (52.03) 6.19 (7.89) 270.19 6.19 23.48 300.93 (136.73) (33.80) 11.33 (140.01) 2.32 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (1105.89) (1103.43) (1155.46) (1163.35) (1157.16) (856.23) (847.42) (987.43) (985.10) (930.10) ts (5.58) 0.88 1.35 (0.86) (1.92) (387.40) (7.66) 54.44 3.46 titlement ShipbuildingShip repairs RetrofitWork-in-ProgressOther IncomeTotalExpenditure: Materials 75.84Direct Expenses & Benefits Pay 24.13 and Duties Taxes 39.67Other Expenses 20.95 20.59 and Losses Provisions 4.43 39.87Prior period Adjustmen 42.65 itemsExtraordinary 201.39 0.55Transfers 7 109.66 10.48Total (10.07) 164.67 interest, / (Loss) before Profit 42.75 10.71 12.76 ordinaryDepreciation & Extra items 127.20 28.29 GoI from Grant Depreciation 0.22 38.03 15.74 236.98Interest 45.60 tax / (Loss) before Profit 103.08 318.88 74.66Income Tax (30.83) 41.36 ene credit MAT 144.54 asset 399.77 Tax Deferred 73.91 (9.28) 184.83 / (Loss) Profit Net 64.32 190.19 0.00 & Loss Appropriation Profit 510.14 57.52 (2.85) 156.04 (10.53) / (Loss) Cumulative Profit 5.44 222.55 498.28 0.00 (11.64) 173.72 99.31 26.54 264.66 662.03 5.12 0.00 235.11 (3.32) 0.00 344.57 637.88 1.05 4.32 303.69 0.00 (3.84) 0.00 1.19 90.82 4.15 (4.45) 0.00 0.00 436.33 5.61 (4.32) 4.07 0.00 0.00 577.59 4.93 (5.12) 4.06 0.00 636.96 0.00 34.70 (109.01) 903.34 5.82 0.00 44.51 6.66 6.93 50.49 0.00 (3.57) 6.46 52.41 (4.26) PROFIT AND LOSS ACCOUNT: PROFIT AND LOSS Income:
65
65 Hindustan Shipyard Limited 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) 8.087 26-12-1951 09-07-1952 17-10-1952 8.137 26-01-1950 14-09-1950 18-01-1951 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 09-11-1953 15-07-1954 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 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 Tonnes Keel Launching Delivery 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 Weight Date of Laying of Date of Date
66
66 59th Annual Report 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 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 12,947 24-05-1962 16-04-1964 29-01-1966 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 Tonnes Keel Launching Delivery (Launch) 20-08-1965 d., 12,873 08-01-1962 15-10-1963 04-05-1965 d., 12,577 22-09-1960 06-04-1962 30-04-1963 Shipping Corporation of India Lt Shipping Corporation Limited tan Shipyard Shipyard tan The Shipping Corporation of India Lt The Shipping Corporation 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 Pradesh” “State 29. Haldia” Calcutta Commissioners Port “R.S.V. 30. Ltd., Shipping Corporation of Rajasthan” The Eastern “State 31. of India Ltd., “Vishvanidhi” Shipping Corporation The Western 32. of India Ltd., of Punjab” The Shipping Corporation “State 33. “Vishva of India Ltd., Shanti” The Shipping Corporation 34. of India Ltd., “Vishva The Shipping Corporation Prem” 35. “Vishva Maya” 36.Vessel) Survey (Port of India Ltd., “Vishva The Shipping Corporation Mangal” 38. Indian Navy “Darshak” 39. The Pradesh” Madhya of “State 40. Hindus “Rohini” 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 Weight of Date Laying of Date of Date
67
67 Hindustan Shipyard Limited 12-07-1972 11-02-1973 0-10-1969 25-04-1971 27-03-1972 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 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 Tonnes Keel Launching Delivery tion of India Ltd., 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 & Natural “Sagarika-2” Vessel) Crew cum (Supply 52. “Vishva of India Ltd., Dharma” The Shipping Corporation 62. The Shipping Corpora “Vishva 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 Madhuri” Vishva of India Ltd., The Shipping Corporation 65. (Landing Craft) Ltd., Ship Company India Steam “Indian Endurance” 2 66. Ltd., Shipping Company Doot” Eastern (Dredger) “Jag The Great 68. Oil Gas Commission & Natural “Sagarika-1” 27-08-1971 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 Weight of Date Laying of Date of Date 72. “Indian Explorer” India Steam Ship Company Ltd.,
68
68 59th Annual Report 7-10-1988 03-03-1989 7-10-1988 03-03-1989 10-11-1988 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 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 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 Tonnes Keel Launching Delivery of India Ltd., 74. Ltd., Damodar Bulk Carriers “Damodar Ganga” 76. “Indian Glory” Ltd., Ship Company Indian Steam 87. SDFC / Moghul Line Ltd., Bulk Carrier, “Lok Maheswari” 26,728 97. Mandakini” “ – C.I.W.C (Barge) 825 1-8-1987 92. Bhushan” (Drill Gas Commission Ship) Oil “Sagar & Natural 78. Ltd, Company Navigation The Scindia Steam “Jalagovind” 2 73. Ltd., Shipping Company Eastern The Great Deesh” “Jag 82. The Shipping Corporation Haryana” of “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” The shipping Corporation “State 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., The Shipping Corporation “Lok Rajeswari” 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 1-8-1987 (Barge) 825 2 1-8-1987 1-8-1987 2 77. Ltd., Company Navigation The Scindia Steam Godavari” `“Jala 2 S.NO. Name of the Ship / Owner Dead Weight of Date Laying of Date of Date
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69 Hindustan Shipyard Limited 10-2002 03-03-1989 10-01-1989 03-03-1989 23-05-1989 20-11-1990 0-11-1994 22-03-1996 15-01-1998 7-08-1999 19-04-2001 03-08-2002 5-06-1988 16-10-19891 04-10-1991 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 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 30-03-1985 29-05-1987 23-02-1990 30-11-1989 01-04-1991 02-05-1991 16-06-1989 22-08-199028-08-1985 16-12-1992 31-07-1988 28-06-1993 18-09-1986 23-09-1992 06-01-1996 10-11-1999 05-01-2001 10-11-2003 ) 1-8-1987 07-02-1989 OPV 25-06-1988 1,000 01-09-1993 10-12-1994 23-01-1995 Tonnes Keel Launching Delivery Cargo Vessel Cargo 42,750 DWT (Bulker) Indian Navy TVP H.Q (Indian Navy) 25T B.P Tug 18-01-2000 31-08-2001 04- eep – A & N Administration 1200 Passenger-cum- The Visakhapatnam Trust Port Tug T.B.P 30 Nadu” The Shipping Corporation of India Ltd., The Shipping Corporation Nadu” C.I.W.C (Barge 825 Goa” The Shipping Corporation of India Ltd.,Goa” The Shipping Corporation 42,750 DWT (Bulker) 2 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 Ambica” HSD Oiler Indian Navy “Lok Prakash” The Shipping Corporation of India Ltd., The Shipping Corporation “Lok Prakash” of India Ltd., The Shipping Corporation “Lok Prem” / Indian Navy“INS Gharial” GRSE Indian Navy OPV, “INS Sarayu” Indian Navy“INS Sharada” of India Ltd., The Shipping Corporation “INS Pratap” 26,790 26,714 of India Ltd., The Shipping Corporation “Maharashtra” 26,718 42,750 DWT (Bulker) – The Visakhapatnam“Mahatma” Trust Port LSTL The Visakhapatnam Trust Port Patel” “Sardar OPV OPV 2 Tug B.P. 50T Tug B.P. 50T 98. “ Matla” – C.I.W.C99. – “ Argo” (Barge) 825 1-8-1987 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. 104. 105. 106. 108. “ 109. 110. “Swatantra” 111. “M.V. 113. 114. 115. “M.V.Tamil 116. “M.V. 118. “M.T 119. A - GAJ” “I.N.S 121. “M.V. S.NO. Name of the Ship / Owner Dead Weight Date of Laying of Date of Date
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70 59th Annual Report 2.11.2006 2.11.2006 2.01.2005 06.10.2002 11.02.2005 23.04.2001 20.05.2004 11.01.2003 20.05.2005 23.04.2001 15.07.2004 29.07.2005 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 10-11-1999 05-01-2001 29-01-2004 11-10-1999 25-01-2002 24-12-2003 MetersMetersMeters 08.02.2005 11.02.2005 08.02.2005 Dredger 30.09.1999 05.09.2003 09.02.2005 3 Tonnes Keel Launching Delivery Research vessel Research tion Vessel 100 Passenger 08.12.1999 rust Launch 0 tiontiontion 2 x 8 x 10 2 x 8 x 10 2 x 8 x 10 isakhapatnam Port Trust Port isakhapatnam 500 M tnam Port T tnam Port Admin. Utility Launch 18.07.2006 Administration Vessel 100 Passenger Manjusha, National InstituteManjusha, National Technology of Ocean cum Tender Buoy ait Island” A & N Administra Jolly Buoy” – A & N Administration 100 Passenger Vessel 18.11.1999 Hut Bay” – A & N Administration 100 Passenger Vessel 08.12.1999 CHAPORA - II” – Marmugao Port Trust Port CHAPORA - II” – Marmugao Tug 45T B.P. Good Providence, forGood Providence, Trader DWT 30,000 Barge for A & for N AdministrationBarge 10 x 8 2 Meters 02.02.2005 Barge for A & N for Administration Barge A & N Administra for Barge A & N Administra for Barge A & N Administra 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 M.L.Radha Nagar for A & N. Admin.M.L.Radha for Nagar A & N Admin. for M.L.Nimbutala A & N Admin.M.L.Nilambar for Utility Launch Utility Launch Utility Launch 18.07.2006 0 0 M/s. Goodearth Maritime Limited (GML), Chennai Maritime Limited Goodearth M/s. carrier Bulk series 127. FRP Launch – Visakhapa 137. Visakhapatnam Rani for Trust Port “M.V.Jhansi B.P.Tug T 50 125. Chatterjee & Co. Sarat B” –M/s Ravi “F.C 126.Wandoor” – A & N Administration “M.V. Floating Crane 17.5 Tons 100 Passenger Vessel 18.11.1999 143. M.V. 122. “M.T. 123. N & A – TEAL” “M.V. 124. “M.V. 128. “M.V. 129. V – Durga” Sagar “G.H.D. 130. 1 131. 2 132. 3 133. 4 134. 5 135. 6 136. Str “M.V. 139. 140. N & A for Uttava M.L 141. 142. 138. Sagar ORV S.NO. Name of the Ship / Owner Dead Weight of Date Laying of Date of Date
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71 Hindustan Shipyard Limited 14.06.2004 06.11.2008 14.06.2004 06.11.2008 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 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 Tonnes Keel Launching Delivery Cargo vessel Cargo control vessel control series Bulk carrier series series Bulk carrier series Bulk carrierseries 0 Bulk carrier series Bulk carrier series Oil recovery and pollution Oil recovery UTL Administration T Passengers-160 700 hak, for Visakhapatnamhak, for Trust Port North Passage for A & N Admin. for North Passage 150 Passenger Vessel 08.12.1999 Good Pilgrims for GML,Good Pilgrims for Chennai 30,000 DWT Trader Jal Sud Good Pacific, for GML, for ChennaiGood Pacific, 30,000 DWT Trader 147. A & N Administration for Bambooka” “M.V. 150 VesselPassenger 08.12.1999 152. GML, Chennai Good Pride for m.v. 53,000 DWT Diamond 153. GML, Precedent for Chennai m.v.Good 53,000 DWT Diamond 151. Trust Port New Mangalore for Iswari, m.t Bollard Pull tug 32-T. 2 146. for M.V.Kavaratti, 150. m.v. 145. M.V. 148. “M.V. 149. M.V. 144. GML, Good Princes, for Chennai. M.V. 30,000 DWT Trader S.NO. Name of the Ship / Owner Dead Weight Date of Laying of Date of Date
72
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