Year 2020-2021, If Declared at the AGM, Will Be 4
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Ship & Submarine Builders to the Nation ANNUAL REPORT 2020-21 Vision Objectives MDL shall strive to be a progressive i. To achieve 20% Post Tax return on gradation and modernization of and profitable shipyard building World equity in line with DPE’s guidelines facilities. Class Warships and Submarines using with improved order position and vi. To upgrade capabilities of State-of-the-Art Technology. profitability. employees as per HRM guidelines ii. To progressively reduce overhead issued by DPE. expenditure and operational costs. vii. To maintain consistent quality iii. To attain technological leadership and to maintain high degree of in warship and submarines Customer Satisfaction. construction through in house viii. To undertake Corporate Social R&D activities and partnership with Responsibility and Sustainability Mission academic institutions. projects as per guidelines. To deliver quality ships in time within iv. To enhance the productivity ix. To enhance indigenization process budgeted costs and be a World leader level through improved internal in line with ‘Make in India’ policy. in Warship building. processes through benchmarking and innovative practices. x. To adhere project time lines to deliver quality ships and v. To take initiatives for growth submarines in time. by undertaking capacity augmentation, technological up- Papers to be Laid on the table of Lok Sabha / Rajya Sabha Authenticated Raksha Rajya Mantri Contents 02-17 18-27 101-207 Corporate Overview Notice Financial Statements 02 Introducing Mazgaon Dock STANDALONE 04 Timeline 101 Independent Auditor’s Report 06 Products 28-100 Statutory Reports Comments of the Controller & 109 07 Marine Infrastructure Auditor General of India 28 Director’s Report 08 Chairman’s Statement 110 Balance Sheet Corporate Governance 14 Financial highlights 52 111 Statement of Profit & Loss Report 15 10 years at a Glance 112 Statement of Cash Flows 90 Secretarial Audit Report 16 Board of Directors 114 Statement of Changes in Equity Business Responsibility 17 Corporate Information 95 Note to Financial Statements Report 116 CONSOLIDATED 156 Auditor’s Report Comments of the Controller & 161 Auditor General of India 162 Balance Sheet 163 Statement of Profit & Loss To view the report online, log on to 164 Statement of Cash Flows www.mazagondock.in/Financials.com 166 Statement of Changes in Equity 168 Note to Financial Statements We are referred to as the ‘Shipbuilder to the Nation’ for a reason. Our expertise in building some of the most sophisticated warships and submarines is a testimony to our consistent track record of vigorous growth and relentless excellence. What differentiates us from the rest is our innovative capacity, the use of state-of-the- art technology and our expertise to develop modern methods of warfare. With an undeterred focus on strengthening the country’s defence portfolio, we are determined to shore up indigenous capacities to remain a progressive and profitable shipyard that is at par with global standards. Paying heed to the Prime Minister’s clarion call for self-reliance through ‘Make in India’, we have successfully produced critical components for warships and submarines. Besides, our emphasis on Research & Development empower us to articulate ambitious projects that make the country proud of our remarkable achievements. Backed by years of experience, we are embracing opportunities to redefine the maritime defence of our country – focusing on the development of products that secure the needs of the future. MAZAGON DOCK SHIPBUILDERS LIMITED Introducing Mazagon Dock We build maritime capability to strengthen national security and help the nation sail through new economic heights. We are the ship builder to the nation. Mazagon Dock Shipbuilders Limited, is one of India’s leading defence public sector undertaking shipyards under the Ministry of Defence. The company primarily undertakes construction of warships and submarines along with outfitting works in its workshops and facilities in Mumbai and Nhava. Over the years, the company has institutionalised shipbuilding in the country and created opportunities for increasing production capacity by investing in modern technologies and sophistication of the product portfolio, to serve Indian and overseas clients. The company has the capability for integrated modular construction of warships which substantially reduces construction time. Subsequently, the ship building capacity has increased from eight to ten warships since 2014 and submarine capacity increased from six submarines to eleven submarines since 2016. With its increased capacity and well- trained personnel, the company is poised to tap the export markets for marine platforms and heavy engineering products along with offering a wide range of services in shipbuilding, ship repairs and refits. 02 Annual Report 2020-21 | Corporate Overview Key Facts about MDL Only P-15B Upto 40,000 Dead Weight Tonnage (DWT) MDL is the only shipyard in India Destroyers have improved to have built Destroyers and two survivability, sea keeping, stealth Capacity of warships, submarines different types of Submarines and manoeuvrability. and merchant ships can be for the Indian Navy. constructed. Scorpene P17-A 300 Tonne Goliath Crane, Module Submarines MDL is the lead ship builder for workshop with retractable building 4 of the next generation roof (Project P-75) guided missile Nilgiri Class stealth frigates in collaboration with Investments in modernisation Executing order for 6 such diesel- Fincantieri, Italy. of facilities for modular electric attack submarines in construction. collaboration with Naval Group, France. Mumbai and ISO 797 Nhava proposed for 9001:2015 Vessels development based on the Certified company Delivered since 1960, of which future order visibility Facilities for shipbuilding and ship 25 repair services Warships from advanced destroyer to missile boats, and 5 Submarines 03 MAZAGON DOCK SHIPBUILDERS LIMITED Timeline Over 200 years of experience in the shipbuilding industry, while traversing from a small single unit ship repair service to multi units, multi products Company. Delivered first Shivalik class Small dry dock Frigate under created in Mazagon project P-17 for ship repair services to East India Company. Delivered the first frigate, INS Nilgiri. Incorporated as a Private Limited Company. 1997 2010 1774 1934 1960 1972 Taken over by Government of India for Indigenous production of warships for Delivered first Delhi class the Indian Navy. Destroyer under project P-15 04 Annual Report 2020-21 | Corporate Overview Delivery and commissioning Delivery and of second P-75 commissioning Scorpene class of third P-75 submarine, INS Scorpene class Khanderi. submarine, INS Launching of INS Karanj. Launched first Nilgiri, first Frigate Visakhapatnam of Project 17A. class Destroyer under P-15B 2017 2019 2020 2021 2014 2015 Equity shares of MDL listed on Bombay Stock Exchange Delivery and and National Stock commissioning of Exchange first P-75 Scorpene class submarine, Delivered first INS Kalvari. Kolkata class Destroyer under project P-15A 05 MAZAGON DOCK SHIPBUILDERS LIMITED Products Shipbuilding/Submarine Oil Sector construction Naval Platforms Merchant Ships Platforms • Destroyers • General Cargo Vessel • Offshore Platforms • Conventional Submarines • Multipurpose Support Vessel • Jack-up rigs • Frigates • Offshore Supply vessel • Corvettes • Tugs • Missile Boat • Dredgers • Offshore Patrol vessels • Passenger cum Cargo Vessel • Floating Border Outposts • Water tankers • Barges • Trawlers • Windmill towers Pontoons 06 Annual Report 2020-21 | Corporate Overview Marine Infrastructure Dry Dock Wet Basin Slipways • Ritchie Dry Dock • Kasara • SY1 216 M X 18.9 M 274 M X 26.21 M X 9.14 M 188 M X 26 M • Mogul Dry Dock • Kanhoji Angre • SY2 129.87 M X 16.76 M 225 M X 112 M X - 6 M 188 M X 26 M • EY Dry Dock • NY 89.39 M X 17 M 190 M X 29 M • Mazagon dry dock 41.15 M X 10.06 M Design facilities Major Machinery MDL has a world class design centre equipped with cutting edge technologies • Heavy duty Underwater CNC such as Computer Aided Design Draughting facilities, latest hardware and software Plasma cutting machines capable of feeding instructions to CNC machines directly, virtual reality centre and • Light duty CNC Plasma Cutting 3D software for more immersive design experience amongst others. The design machine with Oxy/Fuel cutting centre has the capability to offer complete project execution services from concept facility to reality, on turnkey basis. MDL’s Design Centre is equipped with latest software • Gas cutting machine for ship production 3D CAD model, Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), Pipe Flow Calculations and for performing Naval Architectural • Haeusler Plate Bending Machine Calculations • Shipyard Roll Press Godavari Class Frigates, Khukri Class • CNC Pipe Bending Machine Corvettes, The Missile Boats, Offshore Patrol Welding vessels, Delhi Class Destroyers, Kolkatta • Manual Metal Arc Welding Class Destroyers & Shivalik Class Frigates. • MIG/MAG Welding Machines • Gauging Rectifier Some of our successful projects for which detailed design was conceived at the MDL • TIG Welding Machine. design centre • Submerged Arc Welding Machine Projects in hand - P15B Missile Destroyers, • Air Plasma Cutting Machine 17A Frigates & P75 Scorpene Submarines • Fillet Welding Carriage • Butt Welding Carriage • STUD Welding Machines • Welding Simulator 07 MAZAGON DOCK SHIPBUILDERS LIMITED Chairman’s Statement 1. It is a matter of honour, pride