62nd annual report 2013-14
TRANSCRIPT
HINDUSTAN SHIPYARD LIMITED
PAPERS TO BE LAID ON THE TABLE OF LOK SABHA/RAJYA SABHA
AUTHENTICATED
RAKSHA RAJYA MANTRI
Board of Directors . . . . 01
Chairman’s Address . . . . 02
Notice . . . . 05
Directors’ Report . . . . 07
Corporate Governance Report . . . . 18
Management Discussion & Analysis Report . . . . 28
Auditors’ Report . . . . 39
Comments of the C & AG of India . . . . 44
Balance Sheet . . . . 46
Profit & Loss Accounts . . . . 47
Notes to the Accounts . . . . 48
Notes forming part of Accounts . . . . 58
Cash Flow Statement . . . . 71
Social Overheads . . . . 72
Last 10 years at a glance . . . . 74
Ships built . . . . 76
Contents
OUR VISION
To be a National Leader in
Ship & Submarine building and Repairs
OUR MISSION
To imbibe the latest in
Ship / Submarine building and
repair technology and serve
the defence, maritime and
oil sectors through all round
excellence in quality, delivery
and durability
1 !
1 !
BOARD OF DIRECTORS(As on date of AGM)
RAdm N K MishraNM, IN (Retd.)
Chairman & Managing Director
Shri Ashok KK MeenaIAS
VAdm A V SubhedarAVSM, VSM
Shri Skand R TayalIFS (Retd.)
Independent Director
Shri Samirendra ChatterjeeIAS (Retd.)
Independent Director
Cmde KS SubramanianNM, IN (Retd.)
Director (Shipbuilding)
Cmde Ashok BhalVSM, IN (Retd.)
Director (Strategic Projects)
BANKERS
• Indian Bank
• State Bank of India
• UCO Bank
• Syndicate Bank
• Andhra Bank
• Canara Bank
Shri V R S Naga SarmaChief Financial Officer &
General Manager (Finance)
Registered Office :Gandhigram Post Office,
Gandhigram, Visakhapatnam - 530005
PERMANENT SPECIAL INVITEES
VAdm K R NairAVSM, VSM
Chief of Materiel, Indian Navy
VAdm A G ThapliyalAVSM & Bar
DG, Indian Coast Guard
Shri Rajnish KumarAddl. FA & JS (RK), MOD
RAdm Anil Kumar SaxenaNM
DGND, Indian Navy
Dr V Bhujanga RaoDS, CCR & D, DRDO
Shri Inaitula BaigCompany Secretary
Corporate Identity Number (CIN)U74899AP1952GOI076711
STATUTORY AUDITORS
M/s B V Rao & Co.Chartered Accountants, Visakhapatnam
COST AUDITORS
CMA U PrakashCost Accountant, Visakhapatnam
INTERNAL AUDITORS
M/s Ambica & IshaChartered Accountants, Visakhapatnam
2 Hindustan Shipyard Limited
CHAIRMAN’S STATEMENT IN 62nd AGM
Dear Shareholders,
1. I have the great pleasure in welcoming you to this 62nd Annual
General Meeting of your company and share some of significant
achievements during the year under review. The Directors Report, &
Audited Financial Statements have already been circulated to you,
with your permission, I take them as read.
2. Before I move to performance of our company, I would like to
highlight the some of the issues of Global Shipbuilding vis-a-vis Indian
Shipbuilding Industry.
World Shipbuilding Industry
3. Global Shipbuilding Industry continues to be dominated by China, Korea and Japan. In the interim, other
countries such as Vietnam, Brazil and Philippines and Turkey have made impressive inroads. The global recession,
that severely hit the Industry in beginning 2009, is now showing signs of improvement. By end of 2014, it is hoped
that the Industry will recover and this heralds good fortunes for HSL.
Shipbuilding Industry in India
4. India has an extensive coastline of more than 7,515 km and has a pool of trained man-power that best suits
shipbuilding Industry. However, Indian shipbuilding industry has not been able to capitalize its strengths and remains
far behind in the international stage.
5. As per an analysis conducted by ASSOCHAM, Indian Shipbuilding & Ship Repair Industry is likely to witness
opportunities worth Rs 25,000 Cr in coming years as over 41% of Indian ships have crossed 20 years of operations.
India has a total of 1,122 ships in its fleet and 41 per cent of this fall in the age group of 20 years and more.
Considering that the average life of a shipping vessel is about 26 years, most of the existing vessels need to be
replaced. An average cost of constructing a large vessel is about $100 million. Therefore, the size of this opportunity
would be $3.3 billion.
6. Commercial ship construction at Indian shipyards is dwindling and all private shipyards are now looking for
share in the Defense Shipbuilding which is commercially very attractive. There is also a trend to encourage
participation of private yards in defence shipbuilding. This will throw major challenges to HSL in the coming years.
7. Now I move ahead to the major highlights of your Company and its performance during the period under
review.
Major Highlights
8. The Major highlights of the year 2013-14 are as under
(a) Despite severe financial crisis, the yard has delivered five vessels during the year under review.
(b) Some of the noteworthy achievements are as follows
(i) Delivery of Second of 05 nos Inshore Patrol Vessels for Indian Coast Guard.
(ii) Delivery of M V Good Day, fourth of 05 nos (53000 DWT) Bulk Carriers to M/s GML, Chennai
(iii) Launching & Delivery of 03 nos. 50 Ton Bollard Pull Tugs to Indian Navy
(iv) Repair of 20 Vessels of different types for Indian Navy, DCI, ONGC and VPT etc..
(v) The refit of INS Sindhukirti and Project VC 11184 has been put back on track.
Chairman's Statement
3Annual Report 2013-14
Performance
9. The total income of the company during the year is Rs 519.07 Cr as compared to Rs 562.50 Cr of last year.
Your company has recorded a loss of Rs 46.21 Cr during the said financial year. The losses in the Financial Year
2013-14 are mainly attributable to lean Order Book, reduction in turnover, increase in Pay & Benefits and provision
towards liquidated damages. Consequently, the accumulated losses are increased to Rs 1117.37 Cr as on 31 Mar
2014.
10. As reported last year, your company’s financial position continues to be poor and a cause of concern. It has
not been possible to obtain loans from Banks due to the yards poor financial parameters. Notwithstanding above,
the yard has put all efforts to continue production from its internal accruals and funds drawn from RRMI. In order to
ease out the situation, the company has drawn Rs 110 Cr (approx) from the Refurbishment & Replacement of
Machineries & Infrastructure (RRMI) funds for completion of IPVs, Tugs and Sindukirthi submarine etc. The same
would be replenished from the receivables of the said projects. This has been done with the approval of the Board.
Present State of the Yard
11. Our yard is equipped with huge docks, large slipways and adequate carnage. We have a water front of 1000 M
with alongside depth of 10 M all year round. These facilities are conducive to build large ocean going vessels and far
outweigh facilities at other DPSU yards. Keeping this in mind, and that the yard is co-located with large Naval
Establishments, the yard was brought under administrative control of Ministry of Defence in 2010 to undertake
construction of strategic vessels. Pending said transfer, the yard was directed not to take any orders of commercial
ships, presumably to keep the assets at HSL ready for building strategic vessels.
12. Things have changed since the transfer to MoD. Construction of strategic assets has been shelved. The yard is
languishing with orders of only 12 small tugs. Although, some big projects have been nominated, these are with
riders which make them economically unattractive and even these have been inordinately delayed. In the interim,
Defence Procurement Policy has been amended which promotes competition with private shipyards. Accordingly,
HSL is being denied orders on nomination and made to compete with economically sound private yards. In contrast,
other DPSU yards continue to enjoy orders on nomination.
13. It is a myth that HSL is inefficient. This has created such negativity that HSL was not even given RFP for ASW
Crafts and also not nominated for Fleet Support Ships. However, despite serious financial constraints the present
management have been able to put EKM refit and P-11184 back on track. All naval refits during last three years
have been completed on time and few of them which were required for operational commitments have been
delivered before time. In the last FY, the yard delivered 05 new ships, largest amongst all yards (including DPSU
yards) in the country. As regards performance, the net loss of the yard in last three years have been diminishing
year on year (2011-12 Rs 86 Cr, 2012-13 Rs 55 Cr & Rs 2013-14 Rs 46 Cr)
14. With your permission, now I would like to move ahead with some other aspects of the company.
Grading vide Memorandum of Understanding
15. 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
16. Your Company constantly endeavors to adopt and maintain highest standards of ethics in all spheres of its
business activities. The company firmly believes that its business role is based on adherence to fundamental principles
of Corporate Governance like honesty, integrity, accountability, adequate disclosures, legal & statutory compliances,
and to protect, promote and safeguard interests of all stakeholders. It also strives to carry out its business obligations
with good corporate values duly discharging its duties for maximum level of transparency in decision making to
avoid conflicts of interests. It also accords due importance to adherence to the adopted corporate values and
objectives and discharging social responsibilities as a responsible corporate citizen. A detailed report on Corporate
Governance forms part of the Directors Report.
Chairman's Statement
4 Hindustan Shipyard Limited
Financial Restructuring
17. As reported in our earlier reports, the Govt. of India has already sanctioned two Financial Restructuring
Packages to the yard. One in 1997 and another in 2011. Both the Financial Restructuring packages failed to turn
around the yard as both packages did not address the issue of Negative Net worth, Working Capital and Order Book
Improvement. The restructuring packages have addressed only to clear of the legacy liabilities and did not fetch any
financial support towards working capital.
18. This issue has been brought to the notice of Ministry of Defence and in order to turn around the yard, a Fresh
Financial Restructuring proposal to turn net-worth positive and provide working capital has been forwarded to the
Ministry. Presently, the proposal of the yard is under consideration at Ministry.
Future Outlook
19. Our strategic location, well laid out facilities, expertise and experience of our personnel and a conducive
market are indicative of a bright future for the yard. However, the current financial constraints need to be tackled
to remain alive. High value orders such as LPDs and SOVs are on the horizon and thus will increase our Order book
from Rs. 1500 Cr now to at least Rs.12,000 Cr in next two years. The aging workforce would retire in next 2-3 years
and will open avenues for induction of new workforce. We have already inducted around 60 Management Trainees
in last two years and they would be trained to tackle the new orders. Overall the future is bright but the present
dark clouds of financial constraints needs immediate attention.
Human Resource Development
20. Attrition of Permanent workforce is an emerging concern of the yard. In order to tide over the issue and
considering the financial position of the yard, inductions in critical areas are being done through direct recruitment.
Recently, the yard has recruited 31 Management Trainees besides lateral induction.
21. Your company continues to impart training to the new entrants and existing employees as well to increase
the productivity. Your company believes that Human Resource of the company is a valuable asset and put its best
efforts to nurture it through proper training & motivation.
Acknowledgements
22. 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 Good Earth 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 & Auditor General of India,
the Principal Director of Commercial Audit and Ex-Officio Member, the Statutory Auditors, Internal Auditors for the
valuable suggestions and co-operation. I also acknowledge with gratitude the continual assistance and guidance
received from Indian Navy and Coast Guard. Last but not the least I appreciate the vital role and hard work put in by
all employees of the company to achieve its Goal and Board of Directors who have supported the company to
sustain in the tough times.
Jai Hind.
Visakhapatnam (N K Mishra)
23 Sep 2014 Rear Admiral , IN (Retd.)
Chairman & Managing Director
Chairman's Statement
5Annual Report 2013-14
NOTICE OF
62nd ANNUAL GENERAL MEETING
NOTICE is hereby given that the 62nd Annual General meeting of the Shareholders of the Hindustan Shipyard Ltd.,
will be held on Tuesday, the 23rd September, 2014 at 1200 hours at Registered Office at the Board Room, HSL
Registered & Corporate Office, Gandhigram, Visakhapatnam-530 005 to transact the following business:
1. Ordinary Business:
(a) To receive, consider and adopt the Directors’ Report and the Audited Accounts for the year
ended 31 March, 2014 along with the Auditors Report thereon.
(b) To fix the remuneration of the Auditors to be appointed by the Comptroller & Auditor General of India
for the financial year 2014-15.
2. SPECIAL BUSINESS
(c) To approve the remuneration of the Cost Auditors for the financial year ending 31 Mar 15 and in this
regard to consider and if thought fit, to pass with or without modification(s) the following resolution as an
Ordinary Resolution.
“RESOLVED THAT, pursuant to the provisions of Section 148 and all other applicable provisions
of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules,2014 (including any
statutory modification(s) or re-enactment thereof, for the time being in force), the cost Auditors
appointed by the Board of Directors of the Company, to conduct the audit of the cost records of
the Company, for the financial year ending 31 Mar 2015, be paid the remuneration as set out in
the Statement annexed to the Notice convening this Meeting.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to
do all acts and take all such steps as may be necessary, proper or expedient to give effect to this
resolution.”
By order of the Board
Hindustan Shipyard Limited
Visakhapatnam (Inaitula Baig)
11th Jul 2014 Company Secretary
Notice
6 Hindustan Shipyard Limited
Notes :
1. A member entitled to attend and vote at the Annual General Meeting (the “Meeting”) is entitled to appoint
a Proxy to attend and vote instead of himself and a proxy need not be a member of the Company. The
instrument appointing proxy should, however, be deposited at the Registered Office of the Company not less
than 48 hours before the commencement of the meeting.
2. A Statement pursuant to Section 102 (1) of the Companies Act 2013, relating to the special Business to be
transacted at the Meeting is annexed hereto.
3. Relevant documents referred to in the accompanying Notice and the Statement are open for inspection by
the Members at the Registered Office of the Company on all working days, during business hours up to the
date of the meeting.
4. The comments of the comptroller and Auditor General of India under section 619(4) of the Companies Act,
1956 on the Accounts of the Company have not been received so far. These are expected to be received
shortly and will be placed before the Meeting.
To
All the Shareholders,
Directors & Chairman of the Audit Committee.
Permanent Special Invitees
Statutory Auditors,
STATEMENT PURSUANT TO SECTION 102 (1) OF
THE COMPANIES ACT, 2013 (“the Act”)
Item No. (c)
The Board has approved the appointment of CMA Prakash Uppalapati, Practicing Cost & Management Accountant as
Cost Auditor to conduct the audit of the cost records of the Company for the financial year ending 31 Mar 15 at an
audit fee of Rs.50,000/- plus taxes.
In accordance with the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors)
Rules, 2014, the remuneration payable to the Cost Auditors has to be ratified by the shareholders of the Company.
Accordingly, consent of the Members is sought for passing an Ordinary Resolution as set out at item No. (c) of the
Notice for ratification of the remuneration payable to the Cost Auditors for the financial year ending 31 Mar 2015.
None of the Directors / Key Managerial Personnel of the Company / their relatives are, in any way concerned or interested,
financially or otherwise, in the resolution set out at Item No.(c) of the Notice.
The Board recommends the Ordinary Resolution set out at Item No. (c) of the Notice for approval by the shareholders.
By Order of the Board
Hindustan Shipyard Limited
(InaitulaBaig)
Company Secretary
Date: 11 Jul 2014
Place: New Delhi
Notice
7Annual Report 2013-14
DIRECTORS’ REPORT FOR THE YEAR 2013-14
The Shareholders,
Hindustan Shipyard Limited
Gentlemen,
1. Your Directors are pleased to present the 62nd Annual Report on the working of the Company for the financial
year 2013-14. The audited Profit & Loss account for the financial year 2013-14, Balance Sheet, as on 31 Mar 14,
together with report of the auditors of the Company and comments of Comptroller & Auditor General of India on
the Auditors’ report under Section 619 (4) of the Companies Act, 1956 are appended to this report.
Capital Structure
2. As on 31 Mar 14, the authorised share capital and paid up equity share capital of the Company are at Rs
304.00 Cr and Rs 301.99 Cr respectively.
Performance Highlights
2. Financial Parameters. During the year 2013-14, your Company has recorded a loss of Rs 46.21 Cr. The stated
loss is due to reduction in Ship Repair turnover. With this, the accumulated losses as on 31 Mar 14 has increased to
Rs 1117.37 Cr as compared to Rs 1071.16 Cr reported last year. The negative net worth of the Company has increased
from Rs 769.17 Cr to Rs 815. 38 Cr
3. Value of Production. During the financial Year 2013-14, your Company achieved a value of production of
Rs 453.39 Cr.
4. MOU Rating. The performance of the Company during the year 2013-14 is expected to be rated as “Good” in
accordance with the MOU parameters signed with the Government.
Division-Wise Performance
Shipbuilding
5. The Shipbuilding Division of your Company has achieved a Value of Production of Rs. 239.14 Cr for 2013-14 as
against Rs.194.66 Cr in the previous year. The yard has set a target turnover of Rs 375 Cr for the current Financial
Year 2014-15
6. Delivery. During the Financial year 2013-14, the yard has delivered 05 Vessels which include one bulk carrier,
one IPV and three 50 T BP Tugs. This is the largest delivery amongst all private and DPSU yards in the country. This
is a record for the yard and considered a significant achievement as this has been achieved despite severe financial
crunch.
Directors Report
DHIRAJ, SAHAS & HIMMAT, 3 No 50 T BP Tugs delivered to Indian Navy
8 Hindustan Shipyard Limited
Directors Report
7. The following are the major events during the year 2013-14 :
Sl Events Date Description Owner
(a) Floating / 02 Aug 13 Dhiraj, Second of 03 Nos. 50 T Bollard Pull Tug Indian Navy
Launching 02 Aug 13 Sahas, Third of 03 Nos. 50 T Bollard Pull Tug Indian Navy
13 Jan 14 Himat, First of 03 Nos. 50 T Bollard Pull Tug Indian Navy
(b) Delivery 08 May 13 ICGS Rani Avantibai, second of 05 Nos. Inshore ICGPatrol Vessel
29 Jul 13 MV Good Day, fourth of 05 nos. (53000 DWT) M/s GMLBulk Carriers
24 Dec 13 Dhiraj, Second of 03 Nos. 50 T Bollard Pull Tug Indian Navy
24 Dec 13 Sahas, Third of 03 Nos. 50 T Bollard Pull Tug Indian Navy
31 Mar 14 Himmat, First of 03 Nos. 50 T Bollard Pull Tug Indian Navy
8 Order Book Position. The present order book of the yard comprise 24 Vessels, which are under various
stages of construction. As on 31 Mar 14, the value of Shipbuilding orders is worth Rs 1558.91 Cr. The details of the
order book are as under:
Sl Yard Nos Type of the Vessel Owner No of Balance
Vessels Contract
Value(In Rs Cr)
(a) 11140 53,000 DWT Diamond series GML, Chennai 1 36.88
Bulk Carriers
(b) 11156 – 58 Inshore Patrol Vessels Indian Coast Guard 3 12.15
(c) 11165 – 72 Inshore Patrol Vessels Indian Coast Guard 8 551.12
(d) 11173 – 74 50 T Bollard pull Tugs Kandla Port Trust 2 54.37
(e) 11175 – 77 25 T Bollard Pull Tugs Indian Navy 3 110.24
(f) 11178 – 83 10T Bollard Pull Tugs Indian Navy 6 122.13
(g) 11184 VC 11184 Indian Navy 1 672.02
Total 24 1558.91
Visit of VAdm B.K. Verma, AVSM, COS, ENC on 31st January 2014ICGS Rani Avantibai, second of 05 Nos. Inshore Patrol Vessel
delivered to Indian Coast Guard
9Annual Report 2013-14
Directors Report
9. Production/ Physical Performance. Shipbuilding production in DWT and capacity utilisation achieved during
the year 2013-14 as compared to previous year are as under:
(a) The Installed capacity of the yard is 3.5 Pioneer Class vessels, each of 21500 DWT. Hence, the annual
capacity of the yard works out to 75,250 DWT.
(b) As against this, the yard has achieved a capacity utilisation of 38,694 DWT which is 51.42 % of installed
capacity. The capacity utilisation for the last year was 49,458 DWT which translates to 65.73% capacity
utilisation. The reduction of the capacities utilisation is primarily attributed to Low Order Book and poor
financial health to support procurements of materials and payment to service providers.
(c) The man-hours consumed for each DWT in the current year is recorded as 44.68 manhrs against 46
man-hours recorded last year.
Ship Repairs
10. During the year, Ship Repair Division has undertaken repairs of 20 vessels of different types for Indian Navy,
DCI, SCI, ONGC & VPT etc. The Value of Production of Ship Repair Division during the year is Rs 68.70 Cr as against
Rs 152.98 Cr recorded last year. The decrease is due to overall recession in the maritime sector resulting in reduction
in high value Ship Repair orders. The yard has set a target turnover of Rs 150 Cr for the current Financial
Year 2014-15.
Submarine Repairs
11. During the year 2013-14, the Value of Production in respect of submarine repairs was Rs 145.56 Cr as against
Rs 134.79 Cr of the last year. The target Value of Production for Financial Year 2014-15 is Rs 125 Cr. The initial value
of the Contract was Rs 629.01 Cr, subsequently the Cost has been revised to Rs 990.52 Cr to cater for requirements
of additional material, documentation, infrastructure, Growth of Work, Taxes, Exchange Rate Variation and renewal
of main line cables. The Contractual DP of the project expired on 28 Feb 2014. Statement of Case for extension of
DP upto 31 Mar 2015 and additional sanction of Rs 80 Cr has been submitted to Indian Navy on 07 Feb 2014. The
hull repairs of the submarine have been completed and installation of Engineering, Electrical & Weapon equipment
and piping systems are in progress. The cumulative completion of work as on 31 Mar 14 is 85%.
Description In Rs. Cr
Ship Building Ship Repairs Retrofit Unallocated Total
VoP 239.13 68.70 145.56 0.00 453.39
Other Income 11.21 48.40 2.21 3.85 65.67
Total Income 250.34 117.10 147.77 3.85 519.06
Expenditure 246.24 21.20 87.42 0.00 354.86
Profit/(Loss) before Depreciation,
Interest and Income Tax (PBDIT) (87.56) 73.86 30.33 (46.06) (29.43)
Depreciation 5.59 0.40 1.54 0.00 7.53
Interest & Finance Charges 2.70 5.80 0.02 0.73 9.25
Net Profit / (Loss) (95.85) 67.66 28.77 (46.79) (46.21)
Operating Results
12. The summarised financial results of the Company for the year 2013-14 are as under: -
10 Hindustan Shipyard Limited
Directors Report
Contribution to National Exchequer
13. The contribution of your Company by way of Income tax, service tax, customs duty, excise duty and VAT to
the national exchequer is Rs 26.49 Cr during the year 2013-14.
Future Outlook
14. Backed by a blend of expertise and experience of serving the domestic shipping needs, HSL is now poised to
take up the challenges of the global market in a big way. With a major thrust towards diversification, the technological
capabilities of the yard are channeled to cater to the growing needs of Defence sector. HSL, under administrative
control of MoD, has already been earmarked to undertake construction of various war vessels including IPVs, LPDs
and submarines. Collaboration with specialists in the relevant field is on the anvil. Technology up-gradation is planned
in the critical areas. The Ministry has also pledged to place high value orders. Despite competition from new yards
that are coming up, the future of the yard is bright and with Defence orders, the yard can reach new heights.
Modernisation
15. The present infrastructure of yard is outdated and almost outlived its life. Accordingly, there is an urgent need
to refurbish and also renew plant and machinery to meet the future challenges. The management has planned to
modernise the yard in two phases as under :
(a) Phase-I. Rs 457.36 Cr has been sanctioned by Govt. of India for Refurbishment & Replacement of Machinery
& Infrastructure (RRMI) under LPD Project. The amount was received on 23 Dec 11. As on date orders worth
Rs 41.43 Cr have been placed, out of which procurement/ work for an amount of Rs 13.07 Cr is completed.
Items Procured and works completed are Fire Tender, Fabrication of Building Dock Gate, Casting and repairs
of RCC keel blocks and installation of CCTV surveillance system etc. Tenders valued Rs 127.79 Cr is under
progress which includes Level luffing cranes at DDSR and new Panel Blasting & Painting Bay.
(b) Phase-II. The second phase of modernisation involves augmentation of infrastructure to enable construction
of sophisticated warships and strategic vessels for Indian Navy and Coast Guard. This would be funded through
Projects such as SOVs and P 75(I).
Design
16. During the year 2013-14, the design department has undertaken the following activities:
(a) Basic designs for 10 T Bollard Pull Tugs
(b) Detailed design of 50 T Bollard Pull Tugs for Kandla Port Trust and 25 T Bollard Pull Tugs for Indian Navy
have been completed successfully.
(c) During the period under review design capabilities of the yard have been augmented substantially to
meet the growing demand of Defence Ship buildings. The new softwares procured are as under.
(i) 40 Nos Aveva Marine CAD/CAM licenses.
(ii) Existing 25 Nos standalone AUTOCAD licenses increased to 35 nos networked AUTOCAD 2014
licences.
(d) Requisite training has also been imparted.
(e) Installation of Access Control System in DDO
(f) Design ToT contract for 08 IPVs Project for Indian Coast Guard has been signed with M/s Garden Reach
Shipbuilders and Engineers Limited.
(g) The Design office is now engaged with Validation of drawings submitted by M/s Vik Sandwik, Chennai
for project VC 11184.
11Annual Report 2013-14
Directors Report
Quality Assurance
17. During 23-24 Dec 13, Surveillance Audit for ISO 9001:2008 Quality Management System was undertaken by
IRQS, Mumbai and the ISO certificate validity was extended upto Sep 2014. In order to improve the quality
consciousness, an in-house lead auditor training course was conducted by IRQS, Mumbai during 13-17 May 14.
18. The Department of Defence Production, MoD had
declared Financial Year 2013-14 as “Year of Quality”. In
this regard following activities were conducted during the
year 2013-14.
(a) 03 Seminars with involvement of local PSUs
and 14 workshops on various topics by
eminent personalities from IRS, DNV, ABS etc.
(b) Quality meetings with Indian Navy & Indian
Coast Guard
(c) 07 Competitions on Quality Awareness
(d) Display of banners at important locations.
(e) Distribution of handouts of ISO 9001:2008
quality policy of organisation
(f) Institution of awards for best workshops and work centres
19. The Concluding session of Year of Quality 2013-14 was conducted on 30 Apr 2014. The Chief Guest of the
event was Shri C Sri Rama Murthy, Chief Operating Officer from IRS, Mumbai. The function was well attended and
prizes were distributed to winners of competitions conducted during 2013-14.
Safety
20. The management is committed to an accident free and safe working environment. During the year, Plant
Safety inspections were undertaken by safety personnel. Unsafe practices have been identified and remedial measures
have been indicated. During the period under review, regular Central Safety Committee meetings involving members,
co-opted members, other invitees, committee members and office bearers were conducted. Safety banners, posters,
caution boards are displayed in order to create safety awareness among employees.
21. Safety training programmes were organised for workmen and supervisors and employees of contract workers.
22. 43rd National Safety Day was observed on 04 Mar
14. The Chairman & Managing Director administered the
safety pledge to all personnel of the yard. Safety
competitions were conducted during the Safety Week and
Prizes were distributed to winners. Employees of the yard
were deputed to participate in safety competitions
conducted by the Andhra Pradesh Chapter of National
Safety Council, Hyderabad and Shri S K Durga Prasad did
HSL proud bagging First prize in Telugu Essay Writing and
Telugu Poem contest.
National Safety Day on 4th March 2014
Presentation on Quality by Sri Amith Bhatnagar,
Principal Surveyor, IRS on the eve of Year of Quality 2013-14
12 Hindustan Shipyard Limited
Directors Report
23. Fire Service Week was observed during 14 - 20 Apr 13 to create fire safety awareness. Lecture-cum-
Demonstration was organised by Fire Service Department. The function was well attended by all personnel of the
yard.
Information Technology
24. Following IT initiatives were undertaken during the year.
(a) Employee self-service applications have been developed in-house and available on HSL intranet portal
to provide information on Individual Provident Fund Balance, Nominee details etc.
(b) The Servers have been upgraded to improve the performance of ERP application and the storage space
of intra-mail communications have been enhanced.
(c) Unified Storage Solution has been implemented to provide secured, encrypted central enterprise storage
space for data sharing requirements of LAN users across the yard.
Environmental Aspects
25. Your Company continues to be environment friendly
and has fulfilled all the statutory requirements of central
and state pollution control boards. The Company is
committed to meet all the stipulated standards to maintain
and protect the environment.
Industrial Relations
26. During the year 2013-14, the Industrial Relation of
the Company remained peaceful and harmonious.
Welfare Activities
27. Your Company’s concern for the welfare of the employees continues to be paramount and during the year
various welfare measures were implemented. Hindustan Shipyard Recreation (HSR) club assisted by the Company
to undertake various recreation activities for the employees. The Company has renovated and refurbished Crèche
facility provided for the Children of Lady employees. HSR Club organised 67th Independence Day and 65th Republic
Day celebrations on 15 Aug 2013 and 26 Jan 2014 respectively at Colony Parade Ground. Cultural Programes were
also organised by the HSR Club on these occasions.
Plantation of Sapling by Sri Ashok K.K. Meena, JS (NS), MOD
Fire Week Celebrations on 14 – 20 April 2014
13Annual Report 2013-14
Directors Report
Training
28. A large number of ITI Apprentices were trained on designated trades. During the year 2013-14, 229 Trade
Apprentices have successfully completed their training and were awarded National Apprenticeship Certificates by
Govt of India, Ministry of Labour and Employment, NCVT, RDAT, Hyderabad. Presently 212 Trade Apprentices are
undergoing apprenticeship training under the Apprentices Act.
29. Training was also imparted to Graduate Engineers and Diploma Holders. 20 Engineering Graduates, 04
Technician (Diploma) Apprentices were trained under the Apprentices Act and awarded Certificate of Proficiencies
by Govt. of India, Ministry of Human Resource Development, Board of Apprenticeship Training (SR), Chennai.
30. The yard also provided on job training and extended facilities for project work to 1114 students of various
Engineering Colleges, Management Institutions and marine Institutions.
Gender Budgeting
31. In pursuance of the directives of the Government of India, a “Gender Budgeting Cell” has been constituted
with four women Officers to act as a Nodal Agency for all gender responsive budgeting initiatives and to ensure
effective implementation of general development programme for women employees like training, advancement of
skills, provision of welfare amenities at work place etc. There are presently 92 women employees in the yard.
Medical Benefits
32. Your Company runs two dispensaries. The dispensary in the yard works from 07 AM to 10 PM and the other
at residential colony works round the clock to cater for the needs of employees and their dependents. Two ambulances
are available at yard dispensary round the clock. Outpatient medical facilities are extended through a panel of
doctors. Medical facilities are being extended to the employees through referral hospitals and full medical expenses
are being borne by the company in case of hospitalisation due to accidents that occur while on duty. Under referral
system, there are five hospitals which are used for in-patient treatment. The Company bears medical expenses
which are directly paid to the concerned hospitals. Majority of employees and their dependents are covered under
the Medical Reimbursement Scheme for hospitalisation. During the year, an amount of Rs 4.72 Cr was expended
towards medical treatment of employees and their dependents. For crane operators and drivers, annual Eye Check
up by Ophthalmologist from Government Hospital, were arranged. Medical checkups to all Staff and Workmen of
the Company who have crossed more than 50 years of age are taken up under occupational health service. All
retired employees both self and spouse are issued Medical cards to get concessional rates in clinical /lab charges,
without any additional financial burden for the yard.
Celebration of Independence Day
14 Hindustan Shipyard Limited
Directors Report
Reservation of Posts for SCs/STs
33. Your Company has complied with all Govt. directives
with regard to reservation of posts for SC/ST.
Representation of SC/ST employees in various categories
of posts, recruitments made & numbers filled by members
of SCs/STs during the calendar year 2013 and
representation of Ex-Servicemen & Women employees are
placed at annexure 3, 4 & 5 respectively.
Reservation for Physically Handicapped
34. Reservation for physically handicapped in all groups
viz A, B, C and D posts are being complied as per the
directives of Govt. of India. Present percentage of
physically handicapped employees is 3.01% as against
required 3%.
Official Language Implementation
35. Official Language Implementation Committee
meetings and Hindi Workshops were held regularly. Under
‘Hindi Teaching Scheme’, training classes for Hindi Learning
& Typing were conducted for the employees. During the
year, 80 employees participated in Hindi workshops. To
ensure, compliance of Official language policy of Govt. of
India and to encourage use of Hindi, an inter-departmental
monthly incentive scheme is being followed. The Annual
Report, MOU and other documents of the company are
being issued bilingually. To encourage the employees to
read Hindi books, a separate Hindi Library has been set
up. Presently the library has 350 books.
36. Hindi Fortnight was observed during 01-14 Sep 2013. On this occasion, various competitions were organised
and cash awards were presented to winners.
Implementation of Right to Information Act, 2005
37. As per directives of the Govt of India, the RTI Act 2005 is being complied, for which required infrastructure
has been put in place. An RTI portal in the website of the Company is being maintained. Periodical reports on the
progress of implementation of the Act are being submitted to statutory authorities/ Government.
38. All necessary information as per the provisions of RTI Act 2005 are being furnished to information seekers
regularly. During the year 2013-14, your Company received 103 applications (directly and through MoD) and all of
them have been replied.
Corporate Social Responsibility
39. The yard continues to show its commitment towards CSR even though it is not required to allocate dedicated
funds towards CSR being a loss making organization. As a part of it, the Board of Directors has constituted a Board
level sub-Committee on CSR and Sustainability and formulated a CSR & Sustainability Policy and Plan for the year
2013-14. The Chairman of the Committee is Shri Samirendra Chatterjee, IAS (Retd.), Non-official Part time Director.
40. A Senior Management Committee on CSR & Sustainability has also been constituted to monitor the
implementation of the CSR Plan for the year 2013-14. The Senior Management Committee is chaired by an officer
Hindi Day Celebrations
123rd Birth Anniversary Celebrations of Dr. B.R. Ambedkar
15Annual Report 2013-14
Directors Report
in General Manger Cadre with HODs/ Senior Officers from concerned Departments of the yard as its members. The
Committee overseen and implemented the CSR Plan for the year 2013-14.
41. The company has identified some of the need based CSR initiatives for the betterment of the local people and
society with minimum financial commitment. Towards this, an amount of Rs 1,05,000/- was spent during the year
2013-14. The following activities have been undertaken for the betterment of all stakeholders, local people and the
society at large as a part of CSR initiative of the Company:
CSR Activities
(a) World Ozone Day on 16 Sep 2013. A rally was conducted to create public awareness of the dangers of
Ozone depletion and the need to reduce use of CFCs, Carbon emissions etc by over two hundred school and
college students and staff from the educational institutions functioning in HSL township, Members of HSL
Rover Scouts and Scout band.
(b) International Coastal Cleanup Day on 21 Sep 13. 150 (Approx) enthusiastic school and college students
and Staff from educational institutions functioning in the HSL township in Gandhigram, members of the
Rovers Scouts, members of CSR Senior Management Committee of the Company participated to clean up the
sea shore along Varun Beach.
(c) Mega Medical Camps. On 20 Oct 13 & 30 Mar 14 two Mega Medical camps were organised for the
betterment of the weaker sections of society. Renowned Doctors of various specializations rendered their
valuable support for the cause and free medicines were distributed to needy patients. Around 1000 people of
weaker section benefitted from the camp.
(d) World Environment Protection Day. On 26
Nov 13, “World Environment Protection Day was
observed. Essay writing, quiz, slogan and debate
competitions were conducted and prizes were
distributed to winners. A street play titled “Vriksho
Rakshati Rakshitaha” was also staged at Main Gate,
which drew huge crouds and appreciated by one
and all. In addition members of school children,
teachers and Rover Scouts took out a rally to stress
upon the importance of environment protection.
(e) Blood Donation Camp. On 30 Nov 13, a Blood
Donation camp was organised in association with
Lions Club of Visakhapatnam. A record number of
254 employees of HSL donated blood. Senior Officers and members of the CSR Committee, Doctors and
Paramedical Staff including representatives of the Unions/Associations participated in the event.
(f) National Energy Conservation Day. On 14 Dec 2013, as a part of Energy Conservation day, the yard
organised a short play titled “Meere Aalochinchandi” in residential colony to create awareness among colony
residents regarding energy conservation.
(g) National Road Safety Week (11-17 Jan 14). On 17 Jan 2014, as a part of National Road Safety Week,
the yard organised “Sticking of Black Sticker” on the head light of vehicles to dissuade driving with high beam
at Scindhia Junction. Around 1500 vehicles (two wheelers/ four wheelers) were stickered by employees of
HSL and H.S. Rover Scouts with the help of local police.
(h) “Arrive Alive” campaign for Road Safety. 400 (Approx) students along with Lecturers & Teachers of
Hindustan Shipyard Junior College, HS Degree College, Gandhigram Vidya Nililayam and other educational
institutions participated in a rally on Traffic Safety Awareness organised by the yard.
Playlet on World Environment Protection Day on 26th November 2013
16 Hindustan Shipyard Limited
Directors Report
(i) Environment Protection. Saplings were planted in the yard by Chairman of CSR & Sustainability
Committee, Directors and many Senior Officers towards environment protection.
(j) Free Internship Training to Students. Free internship training was imparted to 52 students of
various colleges and educational institutions under CSR activity during the year 2013-14. Also, two
physically handicapped students were exempted from payment of fee towards Project and research
work at HSL under CSR initiatives during the year 2013-14.
(k) Augmentation of Libraries of Colleges run by
Gandhigram Education Society. HSL has taken
necessary steps to augment the libraries of the
colleges run by Gandhigram Education Society to
provide quality education to the students of
economically backward and weaker sections of the
society. Shri Samirendra Chatterjee, Chairman of the
CSR Committee handed over books worth
Rs.30, 000/- to the Principals of Junior and Degree
Colleges in the Colony.
Sustainability: Your Company has organised Training
Programs/ Workshops/ Seminars for Executives, Staff &
Workmen, Year of Quality and taken Energy Saving
Measures as part of its sustainability activities.
42. Apart from the above, the company also bears the expenditures towards electricity and water charges of the
six educational institutions functioning under Gandhigram Education Society (GES). The expenditure on this account
was Rs 71089/- during the year 2013-14.
Corporate Governance Report
43. A report on Corporate Governance & compliance certificate is placed at Annexure-1.
Management Discussion and Analysis
44. A report on ‘Management Discussion and Analysis’ is placed at Annexure-2.
Activities of Vigilance Department
45. Vigilance department in HSL is functioning under the guidance of Central Vigilance Commission and constant
vigil on various activities of HSL is being looked after by the department. Preventive Vigilance was the focus during
the period under review. The main thrust has been given to transparency in procurement through acceleration of e-
procurement and vendor development. Vigilance Awareness Week was observed from 28 Oct 13 to 02 Nov 13 to
emphasise the importance of enhanced probity and spread awareness against Corruption. As a part of Vigilance
Awareness Week, vigilance oath was administered and banners were displayed to create awareness. On 30 Oct
2013, a seminar was conducted on “Promoting Good Governance-positive contribution of vigilance”. Workshops
on the subject “Disciplinary proceedings & Tendering Procedures” were organised on 29 May 13, 20 Jun 13, 31 Jul
13 and 27 Sep 13 respectively through eminent speakers. During the year, rotation of employees in sensitive posts
has been done based on departmental exigencies, feasibility and work requirement.
Conservation of Energy
46. Information required under the Companies (Amendment) Act 1988 pertaining to Conservation of Energy,
Technology absorption and Foreign earnings and outgo is placed at Annexure-6.
Shri Samirendra Chatterjee, Chairman of the CSR Committee
handed over books to the Principals of Junior and Degree Colleges
17Annual Report 2013-14
Directors Report
Particulars of Employees
47. During the year 2013-14, no employee of HSL drew remuneration in excess of Rs 60 Lakhs per annum, (ie Rs
5 Lakhs per month). Hence, the information required under Section 217(2A) of the Companies Act 1956, read with
the Companies (Particular of Employees) Amendment Rules 2011, be treated as ‘NIL’.
Statutory Auditors
48. M/s B V Rao & Co., Visakhapatnam had been appointed as Statutory Auditors of the Company for the financial
year 2013-14 by the Comptroller & Auditor General of India. The fees payable to Statutory Auditors for the year
2013-14 was Rs 1,60,000/- exclusive of Service tax and other pocket expenses.
The reply of the management to the observations of C&AG is placed at Annexure – 7.
Directors’ Responsibility Statement
49. 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 on 31 Mar 14 and the loss of the Company for the financial year ended 31 Mar 14.
(c) That the Directors had taken proper & sufficient care for 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.
Acknowledgements
50. The Board of Directors acknowledge with gratitude, the valuable guidance & support received from the
Department of Defence Production, Ministry of Defence and Department of Public Enterprise. Your Directors are
particularly thankful to the valued customers i.e. Indian Navy and Coast Guard, Dredging Corporation of India, Oil &
Natural Gas Corporation Limited, Visakhapatnam Port Trust, Kandla Port Trust, Shipping Corporation of India etc.
Your Directors also express their gratitude to Controller of Defence Accounts (Navy), Government of Andhra Pradesh,
Departments of Customs, Income Tax, Excise, Service Tax & Sales Tax for their kind support. The Directors also
acknowledge their gratitude to the clients and all Classification Societies, who have ensured quality and adhered to
the standards. Your Directors also place on record their appreciation for the assistance extended by the Company’s
bankers Indian Bank and valuable advice rendered and co-operation extended by the Statutory Auditors i.e.,
M/s B V Rao & Co., Internal Auditors i.e., M/s. Ambika-Isha & Co. and the Officers & Staff of the Offices of the
Principal Director of Commercial Audit & Ex-Officio Member Audit Board, Bangalore and their Headquarters. Your
Directors also wish to place on record its deep appreciation for the valuable contribution of the employees at
various levels for their hard work, dedication and commitment and look forward to their continued involvement
and spirited team effort towards achieving the future goals.
FOR AND ON BEHALF OF
THE BOARD OF DIRECTORS
(NK Mishra)
New Delhi Rear Admiral IN (Retd.)
11 July 2014 Chairman & Managing Director
18 Hindustan Shipyard Limited
Annexure –1
REPORT ON CORPORATE GOVERNANCE
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.
2. Philosophy on Corporate Governance: Hindustan Shipyard Limited constantly endeavours to adopt and
maintain highest standards of ethics in all spheres of its business activities. The company firmly believes that its
business role is based on adherence to fundamental principles of Corporate Governance like honesty, integrity,
accountability, adequate disclosures, legal & statutory compliances, and to protect, promote and safeguard interests
of all stakeholders. It also strives to carryout its business obligations with good corporate values duly discharging its
duties for maximum level of transparency in decision making to avoid conflicts of interests. It also accords due
importance to adherence the adopted corporate values and objectives and discharging social responsibilities as a
responsible corporate citizen.
Board of Directors
3. Composition of the Board: The Board of Directors during the Financial Year 13-14 comprised 09 Members
viz. 04 Whole time Directors (Including the Chairman and Managing Director), 02 Part time Government Directors
and 03 Part time Non Officials Directors (Independent Directors).
4. The details of the members of the Board during the Financial Year ended on 31 Mar 14 are as under:
Corporate Governance
Name of the Directors Period Category of Directorship No. of Other
Directorship
RAdm N K Mishra, NM 01 Apr 13 to Chairman &Managing Director Nil
31 Mar 14
Shri Rakesh Mahajan, 01 Apr 13 to Whole time Director Nil
10 Oct 13
Cmde K S Subramanian 01 Apr 13 to Whole time Director Nil
31 Mar 14
Cmde K L N Prasad 01 Apr 13 to Whole time Director Nil
31 Mar 14
Cmde Ashok Bhal, VSM 01 Apr 13 to Whole time Director Nil
31 Mar 14
VAdm K R Nair, AVSM,VSM 01 Apr 13 to Part-time Govt. Director 1
31 Mar 14
Shri Ashok K K Meena, IAS 01 Apr 13 to Part-time Govt. Director 2
31 Mar 14
Dr Devi Singh 01 Apr 13 to Part-time Non official Director 5
31 Mar 14 (Independent)
Shri Skand R Tayal, IFS 01 Apr 13 to Part-time Non official Director 1
31 Mar 14 (Independent)
Shri Samirendra Chatterjee, IAS 05 Apr 13 to Part-time Non official Director 0
31 Mar 14 (Independent)
19Annual Report 2013-14
Corporate Governance
5. As on date of this report, Vice Admiral AV Subedhar, AVSM, VSM has been appointed as Non official Part time
Director w.e.f 18 Jun 2014 in the place of Vice Admiral K R Nair, AVSM, VSM vide Govt. of India letter 2(12)/2007-
D(SY) dated 23 Jun 2014.
Profiles of new Director
6. Vice Admiral A V Subhedar, AVSM, VSM. Vice Admiral AV Subhedar has commissioned in Indian Navy in
August 1977. He is a post graduate in Marine Engineering from Pune University. During his career, spanning over
Three and half decades, Admiral held important assignments, both Afloat and Ashore. He has served on five frontline
warships including a Tenure as Fleet Engineer Officer, Western Fleet in 1998. His important ashore appointments
include Director Naval Training and Ship Production at Naval Headquarters, Director Machinery Trials and Acceptance
Authority (Mumbai), Warship Production Superintendent (Mumbai), General Manager (Refit) Naval Dockyard
Visakhapatnam, Chief Staff Officer(Technical), Eastern Naval Command, Visakhapatnam and Admiral Superintendent,
Naval Dockyard, Mumbai. As Director General Naval Projects, Mumbai, he was responsible for planning and execution
of major technical and marine infrastructure for the Navy on West Coast. For his Meritorious service of exceptionally
high order in Indian Navy, he has been awarded as Vishisht Seva Medal in 2009 and Ati Vishisht Seva Medal in 2011
by the President of India.
7. 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
R Adm Nikunj Kishore Mishra, NM, IN (Retd) Chairman & Managing Director Nil
Cmde K.S Subramanian, NM, IN, (Retd) Whole time Director Nil
Cmde Ashok Bhal, VSM, IN (Retd) Whole time Director Nil
V Adm A V Subhedar, AVSM, VSM, IN Part-time Govt. Director 1
Shri Ashok K K Meena, IAS Part-time Govt. Director 2
Shri Skand R Tayal, IFS (Retd) Part-time Non official Director 1
(Independent)
Shri Samirendra Chatterjee, IAS (Retd) Part-time Non official Director Nil
(Independent)
8. During the year and upto the date of this report the following Directors has left the board due to
superannuation / completion of tenures of their appointment:
(a) Vice Admiral K R Nair, AVSM, VSM has completed his tenure as Part time Official Director on 18 Jun
2014. Vice Admiral A V Subhedar, AVSM, VSM has been appointed as Part time official Director in lieu.
(b) Shri Rakesh Mahajan, Director (Finance & Commercial) has relinquished his office of Director (Finance
& Commercial) on 10 Oct 2013 on acceptance of his resignation by the Competent Authority at Ministry
of Defence.
(c) Dr Devi Singh, has completed his tenure as Part time official Director on 17 May 2014.
(d) Cmde (Retd.) K L N Prasad, Director (Corporate Planning & Personnel) expired on 20 Jun 2014. Thus the
post of Director (Corporate Planning & Personnel) has fallen vacant.
9. The Board of Directors wishes to place on record the appreciation of the services rendered by the outgoing
Directors. The Board also deeply regret on the sad and sudden demise of Cmde (Retd.) K L N Prasad.
20 Hindustan Shipyard Limited
Corporate Governance
10. Dr Devi Singh has completed his tenure on 17 May 2014 and thus one post of Independent Director post has
fallen vacant since 18 May 2014. Therefore, as on the date of the report, there is one vacancy of Independent
Director needs to be filled by the Govt. of India.
11. Permanent Special Invitees on the Board : During the Year, the following Permanent Special Invitees continued
on the Board:
(a) Shri Rajnish Kumar, Addl FA & JS (RK), MOD
(b) Rear Admiral Anil Kumar Saxena, NM
(c) Dr V Bhujanga Rao, DS, CCR&D, (NS& IC), DRDO
12. In addition, during the Financial year 2013-14 and upto the date of this report, the Govt. of India appointed
the following Permanent Special Invitees on the Board:
(a) Vice Admiral Anurag G Thapliyal, AVSM & Bar, Director General, Indian Coast Guard
(b) Vice Admiral K R Nair, AVSM, VSM, Chief of Materiel, Indian Navy
13. Board Meetings. The Board meets at regular intervals during which the company affairs are discussed and
decisions are taken. During the financial year ended 31 Mar 2014, Seven Board Meetings were held on 17 May
2013, 27 Jun 2013, 23 Jul 2013, 12 Sep 2013, 30 Sep 2013, 02 Dec 2013 and 26 Feb 2014.
14. Directors Attendance. Details of Directors attendance at the Board Meetings and Annual General Meeting
are given below.
Name of the Directors No. of Meetings
Held during the Attended Attendance
tenure of Directors at last AGM
Radm N K Mishra, NM (Retd) 7 7 Yes
Shri Rakesh Mahajan 5 5 Yes
Cmde K S Subramanian, NM (Retd) 7 6 Yes
Cmde K L N Prasad (Retd) 7 6 Yes
Cmde Ashok Bhal, VSM, (Retd) 7 7 Yes
Shri Ashok K K Meena, IAS 7 6 -
VAdm K R Nair, AVSM, VSM 7 5 -
Dr Devi Singh 7 6 Yes
Shri Skand R Tayal, IFS 7 5 -
Shri Samirendra Chatterjee 7 6 -
15. Board Procedure. 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 through proper and appropriate
advance notice to the Board Members after obtaining approval from Chairman & Managing Director. Detailed
agenda, management reports, other relevant documents are generally circulated well in advance to the members
of the Board in order to have meaningful, informed and focused decisions at the meeting. To address specific urgent
needs, Board meetings are also called at short notice and sometimes considering business exigencies, Resolutions
are also passed through circulation which is confirmed by the Board members in its very next meeting.
21Annual Report 2013-14
Corporate Governance
16. In general, agenda papers are prepared by the concerned officials, concurred by the Functional Directors and
put up for approval of Chairman & Managing Director. Duly approved Board notes and agenda papers are circulated
among the Board members by the Company Secretary.
17. The Board and its members have complete access to all informations of the company. The Board is also free
to recommend inclusion of any matter in agenda for discussion. If necessary, senior management is also called to
provide additional inputs to the items being discussed by the Board / committee.
18. Audit Committee. The Audit Committee of the Board comprises three members viz. Two Part time non
official Directors and One Part time Official Director. The Audit Committee is being chaired by a Non official part
time Director. The following were the Audit Committee Members during the Financial Year 2013-14.
(a) Dr. Devi Singh Chairman
(Part Time Non official director)
(b) Shri Skand R Tayal Member
(Part Time Non official director)
(c) Shri Ashok K K Meena, IAS Member
(Part Time Official director)
19. The terms of reference of the audit committee are as specified in Sec 292A of the Companies Act, 1956 and
the guidelines issued by the Department of Public Enterprises. The primary function of the committee is to assist
the Board of Directors to fulfill its responsibilities through review of financial reports, internal control systems for
finance, accounting and legal compliance by the management and Board.
20. The Audit Committee reviews Internal Audit Reports, meets Statutory Auditors and Internal Auditors and
discusses their findings, suggestions and other related matters and reviews the half yearly and annual financial
statements before their submissions to the Board.
21. The Chairman of the Committee apprises the Board regarding observations of the Audit Committee during
the Board meeting. The minutes of the Audit Committee meetings are placed before the Board.
22. During the financial year 2013-14, four meetings of the Audit Committee were held on 23 Jul 2013, 12 Sep
2013, 02 Dec 2013, and 26 Feb 2014.
23. The attendance of the members of the Audit Committee during the financial year 2013-14 is given below
Name of the member No of meeting
Held during the tenure Attended
Dr Devi Singh 4 4
Shri Skand R Tayal, IFS (Retd.) 4 4
Shri Ashok K K Meena, IAS 4 4
24. Procurement Sub Committee: In order to obviate procedural delays in connection with procurement of high
value equipment, a Sub-committee of the Board with vested financial power was constituted in the 366th Board
meeting held on 21 Feb 2012 with the following Members
(a) RAdm N K Mishra , NM (Retd) Chairman
Chairman & Managing Director
22 Hindustan Shipyard Limited
Corporate Governance
(b) Dr Devi Singh Member
Part time Non official Director
(c) Shri Rakesh Mahajan Member
Director (Finance & Commercial)
(d) Concerned Functional Director Member
25. In view of the resignation of Director (Finance & Commercial), the Procurement Sub Committee was
reconstituted in 380th Meeting of the Board of Directors held on 26 Feb 2013 with the following members
(a) Rear Admiral N K Mishra, NM (Retd.) Chairman
Chairman & Managing Director
(b) Shri Samirendra Chatterjee Member
Part time non official Director
(c) Concerned Functional Director Member
26. The terms of reference of the committee include powers to approve proposals for procurement of order for
required assets/capital expenditure items, materials, equipment, tools, stores & spares, imports, approvals of works,
sub-contracts, and facility hire valued above Rs 5 Cr and up to the value of Rs 20 Cr in each case for sanctioned
projects except nomination cases. However, the financial powers of Procurement Sub Committee to approve the
proposals were revised for procurement of materials and equipments value above Rs 25 Cr upto Rs 50 Cr for the
Project VC 11184 only.
27. During the Financial year 2013-14, one meeting of the Procurement Sub-Committee was held on 30 Sep 13
where all members were present.
28. Project Review Sub Committee. In order to review
important Govt. Sanctioned Projects and executed by the
Company, a Project Review Sub Committee (PRSC) of the
Board of Director was constituted in the 372nd Meeting of
Board of Director held on 14 Feb 13. The PRSC comprise
following Directors as members:
(a) Shri Skand R Tayal, IFS (Retd.) Chairman
Part time Non official Director
(b) Shri Rakesh Mahajan Member
Director (Finance & Commercial)
(c) Concerned Functional Director Member
29. The terms of reference of the Committee are as follows:
(a) Detailed Review of technical and financial progress achieved with reference to the milestones fixed
and scope and specifications prescribed.
(b) Review adherence to contractual provisions and approved procurement policy of the company in
important cases of procurement.
(c) To identify deficiencies in the extant procedures and to make suggestions for improvement.
Visit of Ambassador (Retd) Skand R. Tayal, Independent Director
23Annual Report 2013-14
Corporate Governance
30. In view of the resignation of Director (Finance & Commercial), the Project Review Sub Committee was
reconstituted in 380th Meeting of the Board of Directors with the following members
(a) Shri Skand R Tayal, IFS (Retd.) Chairman
Part time Non official Director
(b) Cmde K S Subramanian, NM (Retd.) Member
Director (Shipbuilding)
(c) Cmde K L N Prasad, (Retd.) Member
Director (Corporate Planning & Personnel)
(d) Cmde Ashok Bhal, VSM (Retd.) Member
Director (Strategic Project)
31. During the Financial year 2013-14, three meetings of the Project Review Sub-Committee were held on 10 Apr
2013, 23 Jul 2013 and 26 Feb 2014.
32. The attendance of the members of the Project Review Sub-Committee during the financial year 2013-14 is
given below:
Name of the member No of meeting
Held during the tenure Attended
Shri Skand R Tayal, IFS (Retd.) 3 3
Shri Rakesh Mahajan 2 2
Cmde K S Subramanian, NM (Retd.) 3 3
Cmde K L N Prasad, (Retd.) 3 2
Cmde Ashok Bhal, VSM (Retd) 3 3
33. Human Resource Committee. In order to address HR related issues that require the attention of the Board,
the Board in its 379th Meeting 02 Dec 2013 constituted the Human Resource Committee. The HR Committee comprise
following Directors as members:
(a) Shri Samirendra Chatterjee Chairman
Part time Non official Director
(b) Cmde K S Subramanian, NM Member
Director (Shipbuilding)
(c) Cmde K L N Prasad Member
Director (Corporate Planning & Personnel)
34. The terms of reference of the Committee are as follows:
(a) To review and recommend the proposals towards revision in payment of allowances/benefits to the
employees.
(b) To examine the proposals related to other HR related issues like promotion policy of the company,
welfare measures for employees, IR issues etc. and give its recommendations.
(c) To review and monitor the execution of HR Plan in alignment with company’s objective and future
business expansions and recommend the same to the Board for approval
35. During the Financial year 2013-14, one meeting of the HR Committee was held on 25 Jan 2014 where all
members were present.
24 Hindustan Shipyard Limited
36. Corporate Social Responsibility and Sustainability Sub-Committee. In order to formulate the CSR &
Sustainability Policy and review the activities undertaken, the Board in its 374th Meeting held on 17 May 14 had
constituted the CSR & Sustainability with following Directors as its members
(a) Shri Samirendra Chatterjee Chairman
Part time Non official Director
(b) Shri Rakesh Mahajan Member
Director (Finance & Commercial)
(c) Cmde K L N Prasad Member
Director (Corporate Planning & Personnel)
37. In view of the resignation of Director (Finance & Commercial), the CSR & Sustainability Sub Committee was
reconstituted in 379th Meeting of the Board of Directors held on 02 Dec 2013 with the following members
(a) Shri Samirendra Chatterjee Chairman
Part time Non official Director
(b) Cmde K L N Prasad Member
Director (Corporate Planning & Personnel)
(c) Cmde Ashok Bhal, VSM Member
Director (Strategic Project)
38. The terms of reference of the Committee are as follows:
(a) Formulate and recommend to the Board, Corporate Social Responsibility and Sustainable Development
Policy which shall indicate the activities to be undertaken by the Company.
(b) Recommend the amount of expenditure to be incurred on the activities referred in clause (a).
(c) Monitor the Corporate Social Responsibility and Sustainable Development Policy of the Company from
time to time.
39. During the Financial year 2013-14, four meeting of the CSR & Sustainability Sub-Committee was held on 23
Jul 2014, 25 Jan 2014, 26 Feb 2014 and 26 Mar 2014.
40. The attendance of the members of the CSR & Sustainability Sub Committee during the financial year 2013-14
is given below:
Name of the member No of meeting
Held during the tenure Attended
Shri Samirendra Chatterjee 4 3
Shri Rakesh Mahajan 1 1
Cmde K L N Prasad, (Retd.) 4 4
Cmde Ashok Bhal, VSM (Retd) 3 3
Corporate Governance
25Annual Report 2013-14
41. Remuneration of Whole-time Directors. The remuneration of Whole Time directors is fixed by the Government
as the Company is a Government Company within the meaning of Sec 2 (45) of Companies Act, 2013.
42. Remuneration to Part Time Directors. Part time Official Directors are not eligible for sitting fees attended by
them. The part time Non-Official (Independent) Directors are paid sitting fees as per the provisions of the Companies
Act, 2013 for each meeting of the Board /Committees (s) of the Board and reimbursed actual expenditure to attend
the meeting of the Board/Board Committee (s).
43. Code of Business Conduct and Ethics. As per guidelines issued by Department of Public Enterprises, the
company has formulated “Code of Business Conduct and Ethics for Board Members and Senior Management” for
better corporate governance and fair/ transparent practices. A copy of the same has been circulated to all concerned
and also available on the website of the Company. The Board members and senior management personnel, to
whom the said code is applicable, have affirmed compliance of the same for the year ended 31 Mar 14.
44. General Meetings. The details of the last three Annual General Meetings and Extra Ordinary General Meetings
of the company are given below:
Year Date Time Location
2010-11 16.09.2011 11.00 A.M Shipyard House, New Delhi
2011-12 21.09.2012 11.00 A.M HSL Board Room, Visakhapatnam
2012-13 30.09.2013 10.00 A.M HSL Board Room, Visakhapatnam
Extraordinary
General Meeting 27.05.2014 11.00 A.M HSL Board Room, Visakhapatnam
45. Whistle Blower Policy. The Company has its Whistle
Blower Policy and the same has been displayed on the
Website of the Company.
46. Risk Management Policy. The company has framed
a Risk Management Policy and the same has been
approved by the Board. As on the date, the policy is under
implementation.
47. Disclosures. During the year 2013 -14, the company
has not entered into any transactions with any 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 or pecuniary relationship or transaction with the company which in judgment of the Board
may affect independence of judgment of the directors.
48. 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 Laws.
Corporate Governance
62nd Annual General Meeting on 23 Sep 2014
26 Hindustan Shipyard Limited
Corporate Governance
49. The guidelines issued by the Department of Public Enterprises, Govt of India have been complied with.
50. The company has not incurred any expenditure which is not for the purpose of Business of the Company, nor
has the Company incurred any expenditure which is person 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
Enterprise, Government of India, it is hereby declared that all Board members and Senior Management personnel
have affirmed compliance with the code of conduct for Directors and Senior Management personnel of Hindustan
Shipyard Limited for the year ended 31 Mar 2014.
For Hindustan Shipyard Limited
Place: New Delhi (N K Mishra)
Date: 11 Jul 2014 Rear Admiral, IN (Retd.)
Chairman & Managing Director
27Annual Report 2013-14
Corporate Governance
28 Hindustan Shipyard Limited
Annexure – 2
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Industry Structure and Developments
1. The Indian shipbuilding industry consists of public and private sector yards. India has around 32 shipbuilding
yards operating in public & private sectors. in recent years, the industry has witnessed entry of new shipbuilders
from the private sector. With liberalisation policy of the Government and promulgation of Defence Procurement
Policy-2013 (DPP 2013), these shipbuilders have become serious competitors to Defence Public Sector yards.
2. With opening of Defence market to Private Sector, your Company is facing stiff competition. To meet this
competition, an intensive modernisation programme has been planned. On successful completion of the said
modernisation programme, your Company will be able to meet the future challenges and remain competitive. The
major customers of your Company, ie Indian Navy & Coast Guard, have announced ambitious expansion plans and
your Company is putting its best efforts to secure lucrative orders from these customers. This would help the yard
to turn around & become profit making.
SWOT Analysis
3. In the changing environment, your Company has identified following strengths, weaknesses, opportunities
and threats:-
(a) Strengths
· Largest Shipyard on East Coast of India.
· Only Shipyad on East Coast with submarine repair capability
· Large covered building dock for un-interrupted work.
· Strategically located with water depth of about 10 meters
· Capable to build all kinds of vessels up to 80,000 DWT
· 850m of wharfage with more than adequate cranage
· Large Dry dock and wet basin with exclusive workshops for ship repairs
· Cranage to handle blocks/ loads upto 300 tons
· Three low bed transporters up to 200 tons capacity
(b) Weaknesses
· Aging work force with low productivity
· Old plant and machinery with frequent breakdowns
· Acute cash/ working capital constraints
· Difficulty to retain good contractors & vendors view irregular payments
· Weak supply chain management
· Lack of high value orders
· High overheads due to increased wages
· Low teeth to tail ratio
(c) Opportunities
· Increased requirements of ships to meet coastal security/ Defence needs
· Large scope for repairs due to increased maritime/ offshore fleet & platforms
· National need to Create second line Submarine Construction
· Navy’s requirement for Strategic Vessels to meet Defence needs.
· Need for large special ships to collect Intelligence information
· Medium Repair/ Mid Life update of Submarines
Management Discussion & Analysis
29Annual Report 2013-14
Management Discussion & Analysis
(d) Threats
· Loss of expertise due superannuation.
· Poaching by sister PSUs & upcoming yards
· Loss of business due new yards on East Coast
· Uneven playing field compared to Private Yards
· Volitile Exchange Rate Variation
· Unfavourable judgements for legal cases
· Nonpayment of statutory dues to employees leading to legal tangles and IR climate.
· Changing International Maritime Laws
Infrastructure Modernisation
4. As reported last year, the Refurbishment & Replacement of Machineries and Infrastructure is under progress
with financial support from Govt. of India under LPD Project. In this regard Rs 457.36 Cr has been sanctioned by
Govt. of India for the said purpose. The present status of activities pertaining to RRMI activities till date is as follows:-
(a) As on date orders worth Rs 41.43 Cr have been placed, out of which procurement/ work for an amount
of Rs 13.07 Cr is completed. Items Procured and works completed includes Fire Tender, Fabrication of Building
Dock Gate, Casting and repairs of RCC keel blocks and installation of CCTV surveillance system etc.
(b) Tenders valued Rs 127.79 Cr is under progress which includes Level luffing cranes at DDSR and new
Panel Blasting & Painting Bay
Segment-wise or Product-wise Performance
5. Your Company has three major revenue segments i.e. Shipbuilding, Ship Repairs & Submarine Retrofit. The
Value of Production during the Financial Year 2013-14 from these segments was Rs.453.40 Crs.
6. Segment wise performance during the FY 2013-14 were as under:-
(a) Shipbuilding. Your Company has delivered 05 Vessels which include one 53,000 DWT Bulk carrier of
M/s GML, Chennai, one IPV and three 50 T BP Tugs. This is the largest delivery amongst all private and DPSU
yards during the year 2013-14. The Shipbuilding Division of your Company has recorded a VOP of Rs 239.14
Cr during the said period.
(b) Ship Repairs. Your Company has undertaken Repairs of 20 Vessels of Indian Navy, DCI, SCI, ONGC and
VPT etc. Ship Repair segment of your Company has always been considered as profitable and is being given
utmost thrust as it carries higher margin comparative to shipbuilding segment. It is unfortunate that Indian
Navy has delayed committed refits of two vessels due to operational reasons. Thus the repair dock could not
be used to its desired potential and also the turnover of repair division was adversely afftected. The Ship
Repair Division recorded a VOP of Rs 68.70 Cr during the year 2013-14.
(c) Retrofit. Submarine Retrofit Division of your Company concentrates on refit of Submarines. Presently
INS Sindhukirti, an EKM Class Submarine is under Medium Refit-cum-Upgradation. The VOP of this Division
during the Financial Year 2013-14 was Rs 145.56 Cr. This is a presitigeous refit and has been inordinately
delayed to various reasons. However, during the year 2013-14, the refit has made noticeable progress and
the project has been put back on track.
Future Outlook
7. Our strategic location, expertise experience of our personnel and a conducive market are indicative of a
bright future for the yard. However, the current financial constraints need to be tackled to remain alive. High value
orders such as LPDs and SOVs are on the horizon and thus will increase our Order book from Rs. 1500 Cr now to at
least Rs.12,000 Cr in next two years. The aging workforce would retire in next 2-3 years and will open avenues for
induction of new workforce. We have already inducted around 60 Management Trainees and they would be trained
to tackle the new orders. Overall the future is bright but the present dark clouds of financial constraints needs
immediate attention.
30 Hindustan Shipyard Limited
Management Discussion & Analysis
Risks & Concerns
8. Presently the major concern of the Company is shortage of funds and low order book. The ongoing projects
were all taken in distress and all these are loss making. Due to inadequate Working Capital, ongoing projects are
being adversely affected as the yard unable to make timely payments to contractors, service providers and suppliers.
Other areas of concerns include negative networth, aged workforce, high attrition of permanent workforce due
superannuation, old and aged plant & machineries etc. This in all lead to slippage of contract schedules, increase in
the cost and imposition of Liquidated Damages. Due to new procurement policies of the Government for defence
equipment, the company is at risk of loosing business to private players.
9. Acute shortage of funds (working capital) is affecting the yard adversely. Due to irregular payments, reliable
suppliers and contractors are slowly losing their interest. The salaries and wages of the employees are barely met by
drawing the funds from other projects leading to delay in projects. Further, though the present order book comprises
24 vessels of various categories. 22 of them are small which are not suited to a yard designed for large ships. The
present order book is Rs 1559 Cr which is far below break even orderbook of Rs 5,000 Cr. Further, the Ship Repair
business of the Company which has always been profitable, has been drastically reduced due to down turn in the
maritime sector. Even the Ship Repair orders placed on nomination by Indian Navy has been delayed by almost a
year which had adverse effect on the Ship Repair business.
10. Another area of concern is that the high value orders i.e. LPDs, SOV and Project 75 (I) which have been
nominate have been delayed. Hence, these orders will not be of any immediate help.
Financial Restructuring
11. As reported in our earlier reports, the Govt. of India has already sanctioned two Financial Restructuring
Package to the yard. One in 1997 and another in 2011. Both the Financial Restructuirng packages failed to turn
around the yard as both packages did not address the issue of Negetive Networth, Working Capital and Order Book
Imporvement. The restructuring packages have addressed only to clear of the legacy liabilities and did not fetch any
financial support towards working capital. As a result, the ongoing projects have been delayed leading to imposition
of LD and also low turnover. Year on year the yard has been recoding losses and presently the financial health is
precarious and the yard is unable to pay statutory dues like salaries, wages, PF, Gratuity etc. Employees of the yard
have even filed cases before Regional Labour Commissioner to release their terminal benefit at the earliest which
has now become a cause of concern. The situation has been temporaily brought under control through a temporay
loan of Rs 46 Cr, from funds allocated for repair of infrasrucrure, to pay gratuity liabilities.Further, with the above
temporary measure, the yard has been able to progress the ongoing projects.
12. These issues have been brought to the notice of Ministry of Defence and in order to turn around the yard, a
Fresh Financial Restructuring proposal has been forwarded to the Ministry. Presently, the proposal of the yard is
under consideration at Ministry.
Internal Control System and their Adequacy
13. Your Company has a robust system of Internal Controls to achieve effective and efficient operations, reliability
of financial reports and compliance to applicable laws and regulations. The system comprises clear defined
organisatonal structure, pre-identified authority levels and procedures issued by the management covering all vital
and important areas of activities. viz. Purchase, Material Control, Works, Finance & Accounts, Personnel etc.
14. For the year 2013-14, your Company has outsourced internal audit to M/s Ambica & Isha, Chartered
Accountants, Visakhapatnam which is a Chartered Accoutant firm of repute.
15. The Internal Control Systems are reviewed regularly by the Audit Committee. The adequacy of Internal Control
procedures is also reviewed by the Statutory Auditors in their Audit Report. Your Company, being owned by
Government, is subject to Government Audit also.
31Annual Report 2013-14
Management Discussion & Analysis
Financial Performance of the Company
16. The Financial performance of your Company during the year as compared to the last year are as under.
In Rs Cr
Details As on 31 Mar 14 As on 31 Mar 13
Total Income 519.06 562.50
Profit / (Loss) Before Depreciation, Interest & Tax (29.43) (29.52)
Profit / (Loss) Before Tax (46.21) (55.17)
Profit / (Loss) after Tax (46.21) (55.17)
Cumulative Profits / (Losses) (1117.37) (1071.26)
17. The reasons for losses in the Financial Year 2013-14 have been analysed and points to operational performance
of the Company. The reduction in total income, increase in pay and allowances and provision for LD have all
contributed to losses shown in the profit and loss statements. Consequently, the contribution has also reduced and
inadequate to meet the fixed expenses of the yard.
18. The present order book comprise 24 vessels of Rs 1569 Cr against a breakeven orderbook of Rs 5,000 Cr,
Accordingly, the compny has posted losses.
Development in Human Resource
19. The company places paramount importance on its human resourse. Regular training and skill improvement
programmes have been undertaken to ensure that the employees are full trained to handle state of art technology.
Awareness training on occupational health safety, environment & fire fighting were also conducted during the year.
20. There has been no induction at lower levels and accordingly the middle management is almost non existent.
This has been addressed and 34 Management Trainees and other Senior Officers in the ranks of DGM/AGM/GM
have been inducted during the year.
21. During the Year, 229 Trade Apprentices have been successfully trained at our Apprentice Training School.
These personnel have been awarded National Apprenticeship Certificates iisued by Govt. of India, Ministry of Labour
and Employment, NCVT, RDAT, Hyderabad.
Industrial Relations
22. The industrial relations were cordial and harmonious during the year 2013-14.
Environment Aspects
23. Your Company continues to be environment friendly and has fulfilled all the statutory requirements of central
and state pollution control boards. The Company is committed to meet all the stipulated standards for maintaining
and protecting the environment.
Corporate Social Responsibility
24. Being Loss making, it is not mandatory to allocate dedicated funds towards CSR. However your yard remains
committed to CSR. As a part of it, the Board of Directors has constituted a Board level sub-Committee to oversee
and guide CSR activities. A CSR & Sustainability Policy and Plan for the year 2013-14 has been evolved. In addition,
a Senior Management Committee on CSR & Sustainability has also been constituted to monitor the implementation
of the CSR Plan for the year 2013-14.
25. The company has identified some of the need based CSR initiatives for the betterment of the local people and
society with limited financial commitment. Towards this, an amount of Rs 1,05,000/- was spent during the year
2013-14. The activities undertaken during the year 2013-14 has been detailed in the Diectors Report.
****
32 Hindustan Shipyard Limited
Annexure - 3
An
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33Annual Report 2013-14
Annexure - 4
An
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- 4
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34 Hindustan Shipyard Limited
Annexure - 5
An
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5
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35Annual Report 2013-14
Annexure - 6
INFORMATION AS PER SECTION 217(1)(E) READ WITH THE COMPANIES
(DISCLOSURE OF PARTICULARS IN THE REPORT OF DIRECTORS) RULES 1988 AND
FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR 2013-14
CONSERVATION OF ENERGY
a) Energy conservation measures taken:
b) Additional investments and proposals, if any,
being implemented for reduction of consumption
of energy.
c) Impact of the measures at (a) & (b) above for
reduction of energy consumption and
consequent impact on the cost of production of
goods during the year 2013-14.
1. Optimisation of Lighting levels and use of CFL lamps.
2. Use of heavy loads (Air Compressors etc) restricted to
minimum.
3. Operation of Distribution Transformer limited to 70%.
4. Strict compliance of Plant & Machinery running hours.
5. Replacements of old welding machines with new energy
efficient welding machines.
6. Use of capacitor banks to improve the power factor thereby
reducing the overall power consumption.
7. Replacement of old switchgear & old PLCA cables with new
generation XLPE Cables & new Switch gear etc.
8. Replacements of old Air Conditioners with BEE certified star
rated appliances
NIL
3,52,600 Units
d) Particulars with respect to conservation of energy:
F O R M – A
Power and Fuel Consumption Current Year Previous Year
1. Electricity
a) Purchased units 74,97,500 Units 92,39,000 Units
Total Amount ` 6,92,40,500 ` 5,90,72,714
Rate per Unit ` 9.2 ` 6.4
b) Own generation Nil Nil
2. Coal Nil Nil
3. Furnace Oil Nil Nil
4. Consumption per unit of production N.A. N.A.
Annexure - 6
36 Hindustan Shipyard Limited
F O R M - B
In house Designs development for
· Basic designs for 10 T Bollard Pull Tugs
· Detailed design of 50 T Bollard Pull Tugs for Kandla
Port Trust and 25 T Bollard Pull Tugs for Indian Navy
have been completed successfully
· Saving in Design cost and time.
· Enhancement of in-house Design capabilities.
With the recent procurement of 40 Aveva Marine
Design licenses and 10 additional Autocad 2014
licenses, the yard plans to improve the quality of
production and design by laying emphasis on composite
drawings which are essential for modular construction.
B. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATIONS
Nil
C. FOREIGN EXCHANGE EARNINGS & OUTGO
a) Activities relating to export Initiatives taken
to increase export market for products and
services and export plans.
b) Total Foreign Exchange used and earned:
Used :
a) Material procurement ` 124.44 Crores
b) Others ` 4.73 Crores
Total ` 129.17 Crores
Earned ` 1.47 Crores
Nil
.........
.........
Annexure - 6
A. RESEARCH & DEVELOPMENT
1. Specific areas in which R&D was carried out
2. Benefits derived as a result of the above R&D
3. Future Plan of Action
4. Expenditure on R&D
(a) Capital;
(b) Recurring (Revenue)
37Annual Report 2013-14
Annexure -7
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION
619(4) OF THE COMPANIES ACT,1956 ON THE ANNUAL ACCOUNTS OF HINDUSTAN
SHIPYARD LIMITED FOR THE YEAR ENDED 31 MARCH 2014 AND THE REPLIES OF THE
BOARD OF DIRECTORS
Comments on Balance Sheet
Equity and Liabilities:
Current Liabilities (Note-4)
Other Current Liabilities: Rs 857.29 crore
Advances from GoI for RRMI:
Rs 488.55 crore
A reference is invited to the Comments of the
Comptroller and Auditor General of India on the
annual accounts of the Company for the year 2012-
13 wherein non-provision for liability for interest of
Rs 42.18 crore earned during 2011-12 and 2012-13
to be credited to Government was pointed out. The
interest was earned by the Company on advance
funds received for Refurbishment and Replacement
of Machinery and Infrastructure (RRMI) Scheme not
utilised for the intended purpose within the
stipulated period of one year but kept in term
deposits. As per terms of the sanction, the interest
was to be credited to Government.
During the year 2013-14 also, the Company neither
paid the above interest to Government nor provided
for the liability. Further, the Company utilised Rs
103.05 crore from RRMI funds for meeting various
working capital requirements in contravention of the
terms of sanction. Hence, notional interest of Rs
5.53 crore that would have been earned if invested
in similar term deposits was also not credited to
Government in accordance with the terms of
sanction.
Non-provision for interest earned on the RRMI funds
to be credited to Government resulted in
understatement of liability as well as accumulated
loss by Rs 47.71 crore.
In Dec 2011, the GoI has sanctioned an amount of Rs
457.36 Cr for “Refurbishment and Replacement of
Machinery and Infrastructure (RRMI) at HSL. As per
the sanction, HSL is required to submit utilization
certificate within one year and in case of non-
utilization of the sanctioned amount within one year,
interest earned on the unutilized funds would be
credited to the Govt. As per interpretation of HSL,
interest earned within one year. i.e. Rs 42.18 Cr will
be to the credit of HSL and interest earned on
unutilized funds beyond one year will be to the credit
of the Government. Accordingly, interest of Rs 42.18
Cr earned within one year was accounted as ‘other
income’ in the years 2011-12 & 2012-13. However,
since Govt. Audit had taken a different view on the
accounts for FY 2012-13 and intimated that the said
interest of Rs 42.18 Cr should be shown as a liability
of HSL, the company had approached MoD for a
clarification/ approval for retention of the said
interest. Further in Feb 2014, the company has
submitted a Fresh Financial Restructuring Proposal
(FFR), in which the interest earned on RRMI funds up
to 31 Dec 2013 of Rs 72.64 Cr including the above
said interest of Rs 42.18 Cr was sought as Grant-in-
Aid. The said FFR proposal is under active
consideration of GoI. In view of the said position, no
provision was made towards the said interest of
Rs 42.18 Cr.
In addition to the above, considering the financial
condition of the yard, the Board had approved
temporary utilization of RRMI funds up to Rs 110.00
Cr for completion of on-going Defence projects with
a condition that such drawal be replenished on
receipt of stage payments of the respective projects.
In this regard, the company has utilized an amount
of Rs 103.05 Cr as on 31 Mar 2014. The computation
of interest of Rs 5.53 Cr on the said drawals is only
Comment Company's Reply
Annexure - 7
38 Hindustan Shipyard Limited
FOR AND ON BEHALF OF
THE BOARD OF DIRECTORS
(N.K. Mishra)
Visakhapatnam Rear Admiral (Retd.)
08 Sep 2014 Chairman and Managing Director
Annexure - 7
Comment Company's Reply
on notional basis and not an earned interest. Since
the Sanction letter of GoI stipulates condition with
regard to interest earned only, the company is of the
opinion that no provision is required towards the said
notional interest.
The above position has been disclosed at Note No.14
(a) & (b) in the Notes forming Part of Accounts.
39Annual Report 2013-14
B.V. Rao & Co.Chartered Accountants
INDEPENDENT AUDITOR’S REPORT
To
The Members,
Hindustan Shipyard Limited,
VISAKHAPATNAM
Report on the Financial Statements
We have audited the accompanying Financial Statements of Hindustan Shipyard Limited (herein after called
‘the company’), which comprise the Balance Sheet as at 31st March 2014, the statements of Profit and Loss
and Cash Flow for the year ended 31st March 2014 and a Summary of Significant Accounting Policies and
other explanatory information.
The Management’s Responsibility for the Financial Statements
The Company’s management is responsible for the preparation of these Financial Statements that give a true
and fair view of the financial position, financial performance and cash flows of the company in accordance
with the Accounting Standards notified under the Companies Act, 1956 (the Act) read with the general Circular
no. 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs, GoI, in respect of Section 133 of
the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This
Responsibility includes the design, implementation and maintenance of internal control relevant to the
preparation and presentation of the Financial Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these Financial Statements based on our audit. We conducted
our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of
India. Those Standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
Financial Statements. The procedures selected depend on the Auditor’s judgement, including the assessment
of the risks of material misstatement of the Financial Statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair
presentation of the Financial Statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well as evaluating the overall
presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Auditor's Report
40 Hindustan Shipyard Limited
Emphasis of Matter
Without qualifying our opinion, we draw attention to the following:
a) Note 17 of Notes to accounts, regarding –non receipt of letters of balance confirmation from various
customers/creditors.
b) Note 14 (a) & (b) of Notes to accounts, No provisions are made towards interest of Rs.42.18 crores
for the years 2011-12 &2012-13 and notional interest of Rs.5.53 crores for the year 2013-14 to GOI
pending utilization of RRMI funds as per terms of the sanction.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial
statements give the information required by the Act in the manner so required and give a true and fair view
in conformity with the accounting principles generally accepted in India:
(i) In the case of the balance sheet, of the state of affairs of the Company as at 31 March 2014;
(ii) In the case of the statement of profit and loss, of the profit for the year ended on that date; and
(iii) In the case of the cash flow statement, of the cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2003 (the Order) issued by the Central Government
of India in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, 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 purpose 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 those books.
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this
report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and loss and the Cash Flow Statement comply
with accounting standards notified under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,
2013.
e) The provisions of section 274(1)(g) of the Act, are not applicable to this company vide notification
No.G.S.R.829(E) dated October 21,2003 issued by Department of company affairs, Government of India.
Place: New Delhi FOR B.V.RAO & Co.
Date: 11-07-2014 CHARTERED ACCOUNTANTS
F.R.N 003118S
(CA.B.Vinay Kumar)
Partner
(M.No:223723)
Auditor's Report
41Annual Report 2013-14
Auditor's Report
ANNEXURE TO THE AUDITOR’S REPORT
Referred to point no.1 of Report on Other Legal and Regulatory Requirements of our Report of even date
1. Fixed Assets
(a) Although the company has maintained proper records showing full particulars including quantitative
details of fixed assets and situation of fixed assets, some of the fixed assets were not readily identifiable
with the plant identification numbers noted 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 in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such verification;
(c) The Company has not disposed off substantial part of fixed assets during the year and the going concern
status of the Company is not affected.
2. Physical verification and reconciliation of Inventories
(a) Physical verification of inventory has been conducted by the management at reasonable interval during
the year;
(b) In our opinion and according to the information and explanations given to us, the procedures of physical
verification of inventories followed by the management are reasonable and adequate in relation to the
size of the company and nature of its business.
(c) The company has maintained proper records of inventories. As explained to us, there were no material
discrepancies noticed on physical verification of inventories as compared to the book records.
3. Loans and Advances to parties covered in register maintained under section 301 of the Companies Act,
1956 (the Act)
(a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under section 301 of the companies Act, 1956.
(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.
4. Internal Control systems
In our opinion and according to the information and explanations given to us, there is an adequate internal
control system commensurate with the size of the company and the nature of its business for the purchases
of inventories and fixed assets and for sale of goods and services. During the course of our audit we have not
observed any continuing failure to correct major weakness in such internal control system.
5. Transactions to be entered into Register maintained under Section 301 of the Act.
According to the information and explanations given to us, there were no contracts or arrangements referred
to in section 301 of Companies Act,1956 that need to be entered into Register required to be maintained in
pursuance of Section 301 of the Companies Act, 1956. In view of the above, clause 4(v)(b) is not applicable.
6. Acceptance of Deposits from Public
According to the information and explanations given to us, the company has not accepted any deposit from
the public. Therefore, the provisions of clause(vi) of the paragraph 4 of the order are not applicable to the
company.
7. Internal Audit System
In our opinion, the Company has an internal audit system commensurate with the size and nature of its
business.
42 Hindustan Shipyard Limited
Auditor's Report
8. Maintenance of Cost Records
We have broadly reviewed the books of accounts maintained by the Company pursuant to the Rules made by
the Central Government for the maintenance of Cost Records under Section 209(1) (d) of the Companies Act,
1956. We are informed that compilation of cost accounting records for the current year is in progress and
hence we have not carried out a detailed examination of the records with a view to determine whether they
are accurate and complete.
9. Payments and remittances to Statutory Authorities
(a) According to the records of the Company, undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory
dues applicable to it have been generally deposited regularly with the concerned authorities. On a
broad examination and according to the information and explanations given to us, we have not come
across any undisputed amounts payable in respect of the aforesaid dues that were in arrears as at 31st
March 2014, for a period of more than six months from the date they became payable.
(b) As at March 31, 2014, according to the records of the company and information and explanations
given to us, the following are the dues on account of Provident Fund, Employee State Insurance, Property
Tax, Service Tax and Cess, VAT, NALA Tax matters that have not been deposited on account of any
dispute:
Name of Nature Amount Period to which From Subject Matterthe of (Rs. in the amount where
Statute dues lacs) relates pending
GVMC Property 13.39 1984-85 to High Court Property Tax on Commercial ComplexTax 1994-95
EPF & MP Penal 109.78 May, 2002 to High Court Penal Interest on belated remittancesAct, 1952 Interest Feb, 2005 of Provident Fund Contributions
ESI Act ESI dues + 83.29 April 1,1998 to High Court ESI dues in respect of ‘C’ SeriesInterest Sep 30, 2000 workmen
ESI Act ESI dues 180.24 April 1985 to High Court ESI dues in respect of temporaryMarch 1993 workmen and contractor’s
contribution
Finance Service 2081.31 2005 to 2007 CESTAT Service Tax demand in respect of INSAct, 1994 Tax Sindhukeerthi
Finance Service 367.70 2001 to 2012 CESTAT Service Tax demand in respect of ShipAct, 1994 Tax Repairs
APVAT Act VAT 2552 2006 to 2011 STAT, ADC VAT demand in respect of Ship Repairs
RR Act, NALA Tax 4.54 2000-01 AP State Non-Agricultural Land Assessment Tax1864 Revenue Demands
Dept.
TOTAL 5392.25
10. Accumulated Losses
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.
11. Repayment of dues to Banks or Financial Institutions
In our opinion and according to the records produced to us, the Company has not defaulted in repayment of
its dues to any Financial Institution or Bank during the year.
43Annual Report 2013-14
Auditor's Report
12. Loans and Advances on the basis of security by way of pledge of Shares etc.
In our opinion and according to the information and explanations given to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
13. Chit Fund or Nidhi / Mutual Benefit Fund / Society
In our opinion the Company is not a chit fund or a nidhi /mutual benefit fund / society. Therefore, the provisions
of clause (xiii) of paragraph 4 of the order are not applicable to the Company.
14. Trading in Shares etc.
In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments.
Accordingly, the provisions of clause (xiv) of paragraph 4 of the order are not applicable to the Company.
15. Guarantee for Loan taken by others
We are informed that the Company has not given any guarantee for loans taken by others from banks or
financial institutions.
16. Application of Term Loans
According to the information and explanation given to us, during the year the company has not availed of any
term loan, within the meaning of the clause (xvi) of paragraph 4 of the order.
17. Usage of Short Term and Long Term Funds
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
and vice versa.
18. Preferential Allotment of Shares
According to the information and explanations given to us, the Company has not made any preferential
allotment of shares to parties and companies covered in the register maintained under Section 301 of the
Act, during the year.
19. Issue of Debentures
According to the information and as per records, the Company has not issued debentures during the year.
20. End use of money raised by Public Issue
According to the information and explanations given to us, the Company has not raised money by public
issues during the year.
21. Frauds
FCM Travels, a service provider, inflated domestic and international air travel tickets arranged during the
period from September 2009 to March 2013 by Rs. 47.80 lacs and FCM Travels has given the credit note for
the above specified amount and the same adjusted in the books of the company as on 31-03-2014.
Except as stated above, according to the information and explanations given to us, no fraud on or by the
company has been noticed or reported during the year that causes the financial statements to be materially
misstated.
Place: New Delhi FOR B.V.RAO & Co.
Date: 11 Jul 2014 CHARTERED ACCOUNTANTS
Regn. No. (F.R.N) 003118S
(CA.B.Vinay Kumar)
Partner
M.No:223723
44 Hindustan Shipyard Limited
Comments of the Comptroller and Auditor General of India under Section 619 (4) of the Companies Act, 1956
on the annual accounts of Hindustan Shipyard Limited, Visakhapatnam for the year ended 31 March 2014.
The Preparation of financial statements of Hindustan Shipyard Limited, Visakhapatnam for the year ended 31
March 2014 in accordance with the financial reporting frame work prescribed under the Companies Act, 1956 is the
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 independent audit in accordance with
the Standards on Auditing 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 11 July 2014.
I, on 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 financial statements of Hindustan Shipyard Limited, Visakhapatnam
for the year ended 31 March 2014. This supplementary audit has been carried out independently without access to
working papers of Statutory Auditors and is limited primarily to inquiries of Statutory Auditors and Company Personnel
and a selective examination of some of the accounting records. Based on my supplementary Audit, I would like to
highlight the following significant matters under section 619 (4) of the Companies Act 1956 which have come to my
attention and which in my view are necessary for enabling a better understanding of the financial statements and
the related Audit report.
Comments on Balance Sheet
Equity and Liabilities :
Current Liabilities (Note-4)
Other Current Liabilities : `857.29 crores
Advances from GoI for RRMI : `488.55 crore
A reference is invitied to the Comments of the Comptroller and Auditor General of India on the annual accounts of
the Company for the year 2012-13 wherein non-provision for liability for interest of `42.18 crore earned during
2011-12 and 2012-13 to be credited to Government was pointed out. The interest was earned by the Company on
advance funds received for Refurbishment and Replacement of Machinery and Infrastructure (RRMI) Scheme not
utilised for the intended purpose within the stipulated period of one year but kept in term deposits. As per terms of
the sanction, the interest was to be credited to Government.
During the year 2013-14 also, the Company neither paid the above interest to Government nor provided for the
liability. Further, the Company utilised `103.05 crore from RRMI funds for meeting various working capital
requirements in contravention of the terms of sanction. Hence, notional interest of `5.53 crore that would have
been earned if invested in similar term deposits was also not credited to Government in accordance with the terms
of sanction.
Non-provision for interest earned on the RRMI funds to be credited to Government resulted in understatement of
liability as well as accumulated loss by `47.71 crore.
For and on behalf of the
Comptroller & Auditor General of India
Sd/-
(V. K. Girijavallabhan, IA&AS)
Pr. Director of Commercial Audit &
Ex-offcio Member, Audit Board, Bangalore
Place: Bangalore
Date: 28 August 2014
C & AG Comments
45Annual Report 2013-14
ACCOUNTS
Accounts
46 Hindustan Shipyard Limited
For and on behalf of the Board of Directors As per our report of even dateFor B.V. Rao & Co
Chartered AccountantsSd/- Sd/- Firm Reg. No.003118S
Cmde KS SUBRAMANIAN, NM, IN (Retd) R Adm N K MISHRA, NM, IN (Retd)Director (Shipbuilding) Chairman and Managing Director Sd/-
CA B. Vinay Kumar(Partner)
Sd/- Sd/- M. No. 223723INAITULA BAIG VRS NAGA SARMA
Company Secretary General Manager (Finance) &
Place : New Delhi Chief Financial OfficerDate : 11 Jul 2014
Balance Sheet as at 31st March, 2014` in lakhs
Sl.No. Particulars Note No. As at As at
31-March-2014 31-March-2013
I EQUITY AND LIABILITIES
i Shareholders’ Funds
Share capital 1 30,199.22 30,199.22
Reserves and surplus 2 (1,11,737.42) (1,07,116.45)
ii Non-current liabilities 3
Long term Borrowings 37,221.25 37,221.25
Other long term liabilities 1,571.78 1,190.75
Long term provisions 11,974.48 12,429.63
iii Current Liabilities 4
Short term borrowings 9,608.18 10,360.33
Trade payables 20,242.42 19,276.92
Other current liabilties 85,729.31 89,060.38
Short term provisions 15,702.31 19,096.93
TOTAL 1,00,511.53 1,11,718.96
II ASSETS
i Non-current assets 5
Fixed assets
Tangible assets 7,384.13 7,596.31
Intangible assets 3.61 -
Capital work-in-progress 697.37 1,155.74
Long term loans and advances 418.34 380.57
Other non-current assets 7,413.14 8,221.95
ii Current assets 6
Inventories 13,608.59 13,569.38
Trade receivables 17,888.34 23,015.32
Cash and Bank balances 40,406.94 47,184.48
Short term loans and advances 2,774.39 4,668.58
Other current assets 9,916.68 5,926.63
TOTAL 1,00,511.53 1,11,718.96
Significant Accounting Policies and other Notes to
Accounts forming part of Accounts 17
Notes 1 to 6 form an Integral Part of Balance Sheet
Balance Sheet
47Annual Report 2013-14
Profit and Loss Statement for the year ended 31 March, 2014` in lakhs
Sl.No. Particulars Note No. Year ended Year ended
31-March-2014 31-March-2013
III INCOME
Turnover (Revenue from Operations) 7 45,339.99 48,384.17
Less: Taxes & Duties (2,295.14) (2,080.68)
Net turnover 43,044.85 46,303.49
Other Income 8 6,566.65 7,866.33
Total Income 49,611.50 54,169.82
IV EXPENSES
Materials consumed 9 18,605.01 23,838.90
Sub-contracting and Other Direct Expenses 10 9,954.61 7,691.31
Employee benefits 11 18,789.59 18,306.66
Other expenses 12 2,740.45 2,642.41
Interest & Finance costs 13 925.52 1,777.08
Depreciation 5 752.52 788.77
Provisions and losses 14 1,913.06 4,067.13
Prior period expenditure (net) 15 812.82 841.05
Transfers (289.85) (266.10)
Total expenditure 54,203.73 59,687.21
V Profit before exceptional & extraordinary items
and tax (III-IV) (4,592.23) (5,517.39)
VI Exceptional items - income / (expenditure) 16 (28.74) -
VII Profit before extraordinary items and tax (V-VI) (4,620.97) (5,517.39)
VIII Extraordinary items - -
IX Profit before tax (VII-VIII) (4,620.97) (5,517.39)
X Taxes - -
XI Profit / (Loss) for the period (IX+X) (4,620.97) (5,517.39)
XII Earnings per equity share (Basic) (153) (183)
Notes 7 to 16 form an Integral Part of Profit and Loss statement
Profit & Loss Statement
For and on behalf of the Board of Directors As per our report of even dateFor B.V. Rao & Co
Chartered AccountantsSd/- Sd/- Firm Reg. No.003118S
Cmde KS SUBRAMANIAN, NM, IN (Retd) R Adm N K MISHRA, NM, IN (Retd)Director (Shipbuilding) Chairman and Managing Director Sd/-
CA B. Vinay Kumar(Partner)
Sd/- Sd/- M. No. 223723INAITULA BAIG VRS NAGA SARMA
Company Secretary General Manager (Finance) &
Date : New Delhi Chief Financial OfficerPlace : 11 Jul 2014
48 Hindustan Shipyard Limited
Notes
NOTES FORMING PART OF THE BALANCE SHEET AS AT 31 MARCH, 2014
` in lakhs
I EQUITY AND LIABILITIES
Note - 1 As at As at
31-March-2014 31-March-2013
SHARE CAPITAL
Authorised
30,40,000 - Equity Shares of ` 1000 each
(Previous year 30,40,000- Equity Shares of ` 1000 each) 30,400.00 30,400.00
Issued, Subscribed and fully paid-Up
30,19,922 Equity Shares of ` 1,000 each fully paid-up
(Previous year 30,19,922- Equity Shares of ` 1000 each) 30,199.22 30,199.22
Total - Note : 1 30,199.22 30,199.22
Notes: Subscribed and paid-up share capital includes :
Equity shareholder holding more than 5% of equity shares along with the number of equity shares held is as given below:
Name of the shareholder As at As at
31-March-2014 31-March-2013
Number of shares Number of shares
President of India (100%) 30,19,922 30,19,922
Note - 2 As at As at
31-March-2014 31-March-2013
RESERVES AND SURPLUS
Capital Reserve
Balance in Capital reserve 9.50 9.50
Deficit
Opening Balance (1,07,125.95) (1,01,608.56)
Add: Net Profit / (Loss) for the current period (4,620.97) (5,517.39)
Closing Balance (1,11,746.92) (1,07,125.95)
Total - Note : 2 (1,11,737.42) (1,07,116.45)
49Annual Report 2013-14
Notes
Note - 3 As at As at
31-March-2014 31-March-2013
NON-CURRENT LIABILITIES
Long term borrowings
Unsecured
GoI Loan in perpetuity 37,221.25 37,221.25
37,221.25 37,221.25
Other long term liabilities
Deposits 50.95 10.71
Advances from customers 721.12 380.33
Trade payables (OPF) (Refer Sub-note : 1) 163.72 163.72
Other liabilities (Refer Sub-note : 2) 635.99 635.99
1,571.78 1,190.75
Long term provisions
Provision for employee benefits
Gratuity (Refer Sub-note : 3) 8,175.03 9,175.55
Leave salary (Refer Sub-note : 4) 3,799.45 3,254.08
11,974.48 12,429.63
Total - Note : 3 50,767.51 50,841.63
Sub-Notes:
1 This amount excludes Rs. 5139.33 lakhs pertains to claim of Essar Oil Ltd towards Off shore platform works and
similar amount to be received from ONGC is also excluded from Accrued income.
2 Represents interest accrued on ONGC loan and is payable on finalisation of arbitration.
3 Provision for gratuity excludes deposits amounting Rs. 1106.65 lakhs held with gratuity trust.
4 Leave salary of the company is non funded.
` in lakhs
50 Hindustan Shipyard Limited
Notes
Note - 4 As at As at
31-March-2014 31-March-2013
CURRENT LIABILITIES
Short-term borrowings
Secured loans
Cash credit accounts in Indian Bank (Refer Sub-note : 1) 9,608.18 10,360.33
Trade payables 20,242.42 19,276.92
Other Current Liabilities
Advances from customers 27,599.46 34,400.51
Advance from GoI for RRMI (Refer Sub-note:2) 48,855.34 46,707.99
Other liabilities (Refer Sub-note : 3) 9,022.37 7,671.43
Deposits 252.14 280.45
85,729.31 89,060.38
Short term provisions
Provision for employee benefits
Gratuity 3,009.49 2,961.00
Leave salary 683.05 822.50
Other provisions
Liquidated damages (Refer Sub-note : 4) 4,601.33 7,720.91
Provision for contingencies 159.75 135.76
Provision for future losses (Refer Sub-note : 5) 6,488.69 6,555.29
Guarantee Repairs 760.00 901.47
15,702.31 19,096.93
Total - Note : 4 1,31,282.22 1,37,794.56
Sub-notes:
1 Cash credit facility from Indian Bank is secured by hypothecation of Fixed and Current Assets of the company.
2 Includes interest Rs.4427 lakhs earned on RRMI funds. Assets procured under this package worth Rs. 1307 lakhs is
deducted from the advance.
3 Out of the said amount Rs. 5314 lakhs payable towards wage revision arrears.
4 Out of the said amount Rs.799.76 lakhs towards 2 No 50 Ton Tugs (VPT), Rs.706.81 lakhs for 3 Nos.50T IN Tugs, Rs.911.95
lakhs towards 2 Nos. KPT Tugs and Rs.470 lacs towards 25T IN Tugs.
5 Provision for future losses computed as per AS-7 “Construction Contracts” issued by ICAI in respect of Ships under
construction.
` in lakhs
51Annual Report 2013-14
Notes
II ASSETS
Note - 5 As at As at
31-March-2014 31-March-2013
1) NON-CURRENT ASSETS
Fixed Assets :
Gross Block (Tangible) 24,376.70 23,842.57
Depreciation 16,992.57 16,246.26
Net Block- Tangible 7,384.13 7,596.31
Gross Block (Intangible) 146.38 139.82
Depreciation 142.77 139.82
Net Block- Intangible 3.61 -
Capital Works in Progress (Refer sub-note:1) 697.37 1,155.74
8,085.11 8,752.05
Trade recievables (Refer sub-note:2) 3,678.83 3,409.96
Less: Provision for bad debts (3,009.44) (2,740.57)
Long term Loans and Advances (unsecured)
Capital Advances - 314.83
Deposits with Customs, Port Trust and other Govt. Agencies 418.34 380.57
Income Tax deducted at source 1,831.13 2,329.45
Advance tax (net of provision for Rs.4482.60 lakhs) 99.08 94.74
MAT Credit entitlement (Refer sub-note:3) 4,510.60 4,510.60
Others 156.02 156.02
7,015.17 7,786.21
Other Current Assets
Accrued Income (OPF) (Net of Rs.5139.33 lakhs payable to Essar Oil) 146.92 146.92
Total - Note : 5 15,916.59 17,354.57
Sub-notes:
1) Includes capital items of Rs.334.42 lakhs procured in 2009-10, Rs.53.97 lakhs which were procured in 2011-12 are
retained under this head in view of the fact that the specifications / commissioning as mentioned in the PO are not
adhered to and the matters are under active follow-up with the vendors.
2) Trade receivables include an amount of Rs.669.39 lakhs receivable from ONGC pending settlement of arbitration issues.
3) Includes Rs.28 lakhs paid in 2007-08 eligible for carry forward up to 2014-15 and Rs.4482.60 lakhs paid in 2010-11
eligible for carry forward upto 2020-21.
` in lakhs
52 Hindustan Shipyard Limited
NotesFIX
ED
AS
SE
TS
No
te -
5 (
a)
` i
n l
ak
hs
Gro
ss B
lock
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me
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31
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13
year
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14
31
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13
the
yea
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ng
for
the
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& F
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6.8
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53
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89
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9
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& l
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4
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tor
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61
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61
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s. 1
.64
la
kh
s
53Annual Report 2013-14
Notes
Note - 6 As at As at
31-March-2014 31-March-2013
CURRENT ASSETS
Inventories (Refer Sub-note: 1)
Steel 2,450.73 1,853.81
Stores & Spares , equipment and other Materials 10,462.07 10,977.35
Timber 31.05 27.01
Materials-in-Transit and under inspection 406.68 779.31
Steel Cut Pieces on shop floor and Scrap (Refer Sub-note: 2) 612.33 286.23
13,962.86 13,923.71
Less : Provision for : Obsolescence of materials 130.46 130.52
Difference between Bin cards & PSL balances 223.81 223.81
13,608.59 13,569.38
Trade receivables
Unsecured
Debts outstanding for more than 6 months:
Considered good 10,435.24 5,181.12
Considered doubtful - -
10,435.24 5,181.12
Other debts, considered good 7,453.10 17,834.20
17,888.34 23,015.32
Less: Provision for bad debts - -
17,888.34 23,015.32
Cash and Bank balances
Cash and Cash Equivalents
Cash in Hand 3.15 3.95
Balances with scheduled banks in:
Term and other Deposit accounts 40,139.81 46,987.33
Current accounts 263.98 193.20
40,406.94 47,184.48
Short term loans and Advances
Short term loan and advances
Employees 85.59 78.98
Suppliers of materials & services 1,918.55 3,718.76
Others 878.42 884.36
Prepaid Expenses 83.32 77.49
2,965.88 4,759.59
Less : Provision for Doubtful Advances 191.49 91.01
2,774.39 4,668.58
Other Current Assets
Interest Accrued on term deposits 1,261.95 1,042.10
Accrued Income (Refer Sub-note: 3) 8,654.73 4,884.53
9,916.68 5,926.63
Total - Note : 6 84,594.94 94,364.39
Sub-notes:
1 Inventories are as valued and certified by the management.
2 Quantity of steel cut pieces on shop floor and Scrap is based on technical estimate.
3 Accrued Income is in respect of Ship Building, Ship Repairs & Sale of scrap and it includes income for the previous
financial years amounting Rs.138 lakhs (Ship Building: Rs. 66 lakhs and others Rs.72 lakhs).
` in lakhs
54 Hindustan Shipyard Limited
Notes
NOTES FORMING PART OF THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 MARCH, 2014
` in lakhs
Note - 7 Year ended Year ended
31- March-2014 31- March-2013
Turnover (Revenue from Operations)
Sale of products - (Refer Sub-note: 1)
Shipbuilding - Contractual Income 23,354.79 17,311.20
- Government subsidy (Refer Sub-note: 2) 558.54 2,155.09
Sale of services -
Repair works 5,808.98 13,861.51
Dry dock hire charges 203.30 307.43
Wet basin hire charges 261.45 196.94
DDSR Other services 542.39 931.54
Submarine Retrofit (Refer Sub-note:3) 14,556.26 13,478.52
Other operating revenue
Sale of scrap, stores & disposable materials
(Net of VAT: Rs.7.87 lacs) 54.28 141.94
Total - Note : 7 45,339.99 48,384.17
Sub-notes:
1 Income from ship building is recognised as per AS-7 “Construction Contracts” issued by ICAI.
2 Company is eligible for subsidy @30% on 53K Bulkers under construction for GML.
3 With regard to accountal of income from submarine retrofit services, the company has been consistently following
AS-9 for the last several years in view of the nature of the activity as well as compliance of the conditions stipulated in
AS-9. However, in the year 2012-13, the Statutory Auditors are of different view that AS-7 is applicable in this regard. In
order to attain finality, the company, referred the above issue to the Expert Advisory Committee of Institute of Chartered
Accountants of India for their opinion. The said opinion is yet to be received.
Note - 8 Year ended Year ended
31- March-2014 31- March-2013
(a) Other Income
Interest from banks & others Rs. 3598.77 lakhs 4,606.77
Less: Interest payable to GoI (RRMI & VC 11184) Rs. 3457.58 lakhs 141.19 (971.98)
Foreign Exchange variation - 331.42
Rent (Net of Service Tax) (Refer Sub-note No: 1) 179.35 90.66
Fines and forfeitures 112.69 230.17
Miscellaneous Receipts 63.37 186.45
Provision for Future losses on shipbuilding written back 825.65 2,980.09
Profit on sale of Assets 1.41 -
Provisions of earlier years no longer required 5,242.99 412.75
Total - Note : 8 6,566.65 7,866.33
Sub-notes:
1 Rent excludes service tax amounting Rs. 25.54 lakhs.
55Annual Report 2013-14
Notes
` in lakhs
Note - 9 Year ended Year ended
31- March-2014 31- March-2013
Materials Consumed
Steel 2,153.41 537.82
Stores & Spares 2,205.85 1,009.14
Timber 14.25 3.15
Direct Materials, Machinery & Equipment used in
Ship Construction 11,157.38 13,335.64
Shiprepair 622.71 3,101.02
Submarine Retrofit 2,140.10 5,734.65
18,293.70 23,721.42
Add: Stores procurement expenses 311.31 117.48
Total - Note : 9 18,605.01 23,838.90
Note - 10 Year ended Year ended
31- March-2014 31- March-2013
Sub-contracting & Other Direct Expenses
Sub contract & off-loaded job expenses in :
Ship Construction 2,568.17 1,280.51
Ship Repairs 584.43 2,001.19
Submarine Retrofit 246.97 652.35
Other Direct Expenses in :
Ship Construction (Refer Sub-note-1) 1,108.34 722.83
Ship Repairs 13.47 718.52
Submarine Retrofit 5,180.03 2,095.86
Builders Risk Insurance in Ship Constuction 253.20 220.05
Total - Note : 10 9,954.61 7,691.31
Sub-notes: 1. Other Direct Expenses in Ship Construction includes Rs.390 lakhs provision for Guarantee Repairs.
56 Hindustan Shipyard Limited
Notes
Note - 11 Year ended Year ended
31- March-2014 31- March-2013
Employee Benefits
Salaries, Wages, Allowances etc., 12,890.99 13,446.47
Contribution to Provident Fund and other funds 1,295.08 1,318.33
Gratuity 2,406.00 2,294.60
Leave salary 1,462.36 689.61
Expenses on Training, Stipend etc. 49.87 74.18
Employees Welfare Expenses 685.29 483.47
Total - Note : 11 18,789.59 18,306.66
Note - 12 Year ended Year ended
31- March-2014 31- March-2013
Other expenses
Power and Fuel (net of recoveries) 785.87 651.78
Water Charges (net of recoveries) 122.10 96.89
Rates and taxes (including customs duty on scrap sales) 48.61 100.19
Fire and Other Insurance 111.89 251.61
Rent (Sub-note 1) 168.75 153.22
Repairs and Maintenance to :
Plant and Machinery 597.11 506.85
Buildings 250.56 138.54
Other Assets 48.00 55.82
Printing and Stationery 7.14 8.57
Local conveyance charges 229.27 181.85
Travelling Expenses 60.16 47.85
Communication expenses 4.07 3.91
Advertisement and Publicity 26.91 13.47
Salaries and other Expenses of Customs Staff 36.60 52.38
Demurrage Charges 14.90 13.93
Directors’ Fees and Expenses:
Directors’ Fees 1.67 0.45
Travelling Expenses 23.18 38.17
Auditors’ Remuneration :
Statutory Audit 1.80 1.69
Expenses 0.34 0.35
Foreign exchange variation 96.95 -
Miscellaneous Expenses 104.57 324.89
Total - Note : 12 2,740.45 2,642.41
Sub-notes :
1) Rent includes an amount of Rs. 152.67 lakhs on lease-hold lands (259.89 acres from VPT).
` in lakhs
57Annual Report 2013-14
Notes
Note - 13 Year ended Year ended
31- March-2014 31- March-2013
Interest & Finance Charges
Interest on :
Bank term loans & Cash Credit 782.71 1,285.15
Others 67.16 367.35
Bank Charges 75.65 124.58
Total - Note : 13 925.52 1,777.08
Note - 14 Year ended Year ended
31- March-2014 31- March-2013
Provisions and Losses
Provisions made:
Obsolescence of Materials 1.64 78.83
Reduction in SR Bills 398.02 660.00
Liquidated Damages 411.03 2,165.05
Contingencies 159.75 38.79
Doubtful Debts /Advances 100.48 365.41
Losses :
Reduction in Shipbuilding inventory 842.14 759.05
Total - Note : 14 1,913.06 4,067.13
Note - 15 Year ended Year ended
31- March-2014 31- March-2013
Prior Period Adjustments
A Income
SR Income 31.46 -
EKM Insurance refund 24.65 -
Miscellaneous - 2.86
56.11 2.86
B Expenditure
SC Direct Expenses 26.98 6.54
SC Insurance expenses 53.25 -
Berth hire charges - 17.76
Materials, Freight, C & F charges 80.00 762.18
Taxes & Duties - 1.72
Rent - 0.07
Depreciation 1.64 28.52
EKM FE Variation 576.81 -
Miscellaneous 130.25 27.12
868.93 843.91
Net Expenditure / (Income) 812.82 841.05
Note - 16 Year ended Year ended
31- March-2014 31- March-2013
Exceptional items (Expenditure)
Arbitration award 28.74 -
Total - Note : 16 28.74 -
` in lakhs
58 Hindustan Shipyard Limited
Notes
Note – 17
Notes Forming Part of the Accounts for the year ended 31st March 2014
A. ACCOUNTING POLICIES
1. ACCOUNTING CONVENTIONS:
The financial statements are prepared under the historical cost conventions in accordance with Generally
Accepted Accounting Principles in India and provisions of the Companies Act, 1956. Generally, revenues are
recognized on accrual basis with provisions made for known losses and expenses.
2. ASSETS:
(a) Fixed assets:
Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive
of freight, duties, taxes, incidental expenses relating to cost of acquisition (net of VAT), interest during
construction period and the cost of installation/erection as applicable.
(b) Intangible assets :
Expenditure incurred on software will be capitalized under intangible assets and shall include expenditure on
procurement of software, acquisition / development of software and up-gradation / enhancement of existing
software resulting in enhancement of economic benefits.
However all embedded software without separate value and included in hardware is capitalized along with
cost of hardware.
Fixed assets, Capital work-in-progress and capital advances are segregated as non-current assets.
3. INVENTORIES:
i) Steel, Timber, Spares and other stores are valued at Weighted Average Cost or net realizable value
whichever is lower. Obsolescence is provided for on the basis of technical estimate.
ii) Direct Materials and Stores items in offshore platform activities are valued at cost or net realizable
value whichever is lower under specific identification and FIFO respectively.
iii) Cost includes expenses of procurement including all taxes and duties other than VAT.
iv) Scrap is valued at estimated realisable value.
4. INCOME:
Income is recognized in accounts:
A. i) In respect of ships under construction, on the basis of percentage completion method, taking
into account the proportion that the contract cost incurred for work performed upto the reporting
date bears to the estimated total contract cost for completion.
Cost for the above purpose includes value of direct materials including Machinery and other
ship borne equipment issued for specific ship, direct labour, direct expenses and general overheads
excluding administrative overheads and overheads attributable to idle time.
ii) In respect of ships delivered during the year at the balance price including claims for extra works
and cost escalation realisable from owners.
iii) For the purpose of recognition of profit, weightage shall be given to the following three factors,
which shall reach a minimum of 20% individually.
a. The proportion that cost incurred to date bears to the estimated total cost of the contract,
b. Stage completion and
c. Revenue received.
59Annual Report 2013-14
Notes
B. Income from other activities including ship repair and submarine refit activities is accounted for on
accrual basis by adopting proportionate completion method.
C. Income is inclusive of Excise Duty, Sales Tax and Service Tax and is net of Rebates and other Deductions
under the respective contracts.
D. Claims in respect of Insurance are accounted for on acceptance basis taking into account the acceptances
received within 15 days of the end of the financial year.
E. The income in respect of all the activities is captioned as “Turnover”.
5. GOVERNMENT GRANTS:
i) Capital grants / subsidy:
Capital grants / subsidy relating to specific assets are reduced from the gross values of assets and
capital grants for project capital subsidy are credited to capital reserve and retained till the requisite
conditions are fulfilled.
ii) Revenue grants / subsidy:
a) Grant-in-aid received from Government of India for implementation of Voluntary Retirement Scheme
is matched with related costs through Profit & Loss Account . Unutilized grants are shown under Current
Liabilities.
b) Price subsidy received / receivable from Government of India in respect of ships is considered as income
on the basis of percentage completion of the respective ships.
c) All other revenue grants are credited to profit & Loss Account.
6. EXCISE DUTY:
Excise Duty wherever applicable is accounted for as and when the products are cleared from the yard.
7. DEPRECIATION:
Depreciation is provided for under straight-line method in accordance with schedule XIV of the Companies
Act, 1956 as amended, in respect of assets capitalised on or after 01-04-1988. In respect of assets capitalised
prior to 01-04-1988 depreciation is provided under straight-line method at the rates worked out adopting
the management’s estimates of useful lives of the respective assets as under:
Name of the Asset Life
1. Buildings
a. Class I Factory Buildings 33 years
b. Class II Factory Buildings 20 years
c. Class I Non-Factory buildings 58 years
2. Plant and Machinery 19 years
3. Furniture and Fixtures 29 years
4. Motor Vehicles 7 years
5. Dry Dock/Wet Dock and Slipways 50 years
6. Boats and Launches 20 years
Depreciation on additions/disposals made during the year is charged prorata by grouping them on quarterly
basis.
Intangible assets will be amortized over a period of 5 years.
60 Hindustan Shipyard Limited
Notes
8. BORROWING COSTS:
a) Borrowing Costs relating to the acquisition/construction of qualifying assets are capitalised until the
time all the substantial activities necessary to prepare the qualifying assets for their intended use are
complete.
b) A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended
use.
c) All other borrowing costs are charged to revenue.
9. EMPLOYEE BENEFITS:
(i) Defined Contribution Plan
Employee Benefits in the form of Employee Pension Fund is considered as Defined Contribution plan and the
contributions are charged to the Profit & Loss Account of the year when the contributions to the said fund
are due.
(ii) Defined Benefit Plan
Retirement Benefit in the form of Gratuity, is considered as Defined Benefit Obligation and is provided for on
the basis of an actuarial valuation using the projected unit credit method as at the date of Balance Sheet.
Employee Benefit in the form of Employee Provident Fund is considered as Defined Benefit plan and the
contributions are charged to the Profit & Loss Account of the year when the contributions to the said fund
are due.
(iii) Other Long Term Benefits
Long-Term Compensated Absences are provided on the basis of an actuarial valuation using the Projected
Unit Credit Method as at the date of Balance Sheet.
Actuarial gain/losses, if any, are immediately recognized in the Profit & Loss Account.
10. EMPLOYEE SEPARATION COSTS:
Compensation to Employees who have opted for Retirement under the Voluntary Retirement Scheme of the
Company is charged to the Profit and Loss account in the year of exercise of option, net of grant in aid
received / receivable in the year of payment.
11. PROVISION FOR FUTURE LOSSES:
In the case of Ship Building activities where current estimates of total contract cost exceeds the expected
realisable value, provision is fully made for such anticipated loss in accordance with AS 7 issued by the Institute
of Chartered Accountants of India.
12. PROVISION FOR SUNDRY DEBTORS:
Provision is made for all debts considered doubtful of recovery having regard to the following consideration
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.
61Annual Report 2013-14
Notes
14. NORMAL OPERATING CYCLE:
(i) “Normal operating cycle" is project-wise as the time period from the date of effectiveness of the contract
to the date of completion of the project.
(ii) “Completion of Project” is till the date that all the issues between the parties are mutually settled by
them other than resorting to legal means.
15. CAPITAL EXPENDITURE FUNDED THROUGH NAVAL SHIP PROJECTS:
The Capital Expenditure funded through Naval Ship Projects is netted-off from the corresponding fixed assets.
The net amount so arrived at is shown as the carrying amount of such fixed assets.
Any remaining balance(s) excess/shortfall is shown as non-current asset/liability as the case may be.”
16. MISCELLANEOUS:
(i) Loose tools:
Loose tools are charged to revenue on issue of the same from stores
(ii) Liquidated damages:
Provision for liquidated damages is made in the accounts as per the contractual provision / proportionate
liability basis keeping in view the delay caused by the factors beyond the control of company.
(iii) Guarantee repairs:
Provision for liability for guarantee repairs made in the accounts at the time of delivery on the basis of
estimation.
(iv) DISCLOSURE OF EXPENDITURE:
All items of expenditure are stated under nominal heads at gross figures and the aggregate amount
allocated/transferred to other heads on functional basis is shown separately except direct labour.
62 Hindustan Shipyard Limited
1. Contingent liabilities
1.1 Irrevocable letters of credit outstanding
1.2 Counter guarantees given to banks for guarantees issued on behalf of
the company
1.3 Estimated amount of contracts remaining to be executed on capital
account and not provided for
1.4 Demands raised against the company by various authorities, contested
at various courts, appellate authorities etc and not provided for:
1.4.1 Property tax on commercial complex for the years from 1984-85 to
1994-95.
1.4.2 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
deposit of a sum of `35.00 lakhs by the company. Accordingly, HSL
had deposited the said amount. Presently, the case is pending in Hon’ble
High Court of Andhra Pradesh.
1.4.3 (a) ESI dues in respect of ‘C’ series workmen for the period from
1-4-1998 to 30-9-2000 together with interest thereon (`6.64 lakhs paid
under protest grouped under deposit recoverable)
(b) ESI dues in respect of temporary workmen for the period from April,
1998 to Oct., 1999, contractors contribution for the period from Apr.,
1985 to March, 1993.
1.4.4 Service tax demand in respect of INS Sindhukeerthi
1.4.5 Service tax demand in respect of Ship Repairs
1.4.6 VAT demands in respect of Ship Repairs
1.4.7 Demands of various suppliers of goods and services
1.4.8 Non Agricultural Land Assessment tax demands for the year 2000-01
1.4.9 Demands in respect of service matters of employees having financial
impact.
Total [1.4]
1.5 Claims against the company, which are under arbitration and not
provided for:
1.5.1 Counter –Claims of ONGC towards liquidated damages, penal interest
and interest on interest in respect of construction of well platforms
(net of provision).
1.5.2 Claims of Essar Oil Limited (EOL) towards OPF works (net of provision
made of `5139.00 lakhs).
B. NOTES ON ACCOUNTS
(` in lakhs)
2013-14 2012-13
Notes
5248.56 3680.31
17111.23 18804.67
- -
13.39 13.39
109.78 109.78
83.29 78.58
180.24 180.24
2081.31 2081.31
367.70 367.70
2552.00 2644.78
1875.81 898.61
4.54 4.54
1397.86 1379.31
8665.92 7758.24
8638.00 8638.00
13441.80 11878.52
63Annual Report 2013-14
2. 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)
2013-14 2012-13
Employer’s Contribution to Pension Fund 132.88 149.04
Defined Benefit Plan
The employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligationis determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period ofservice as giving rise to additional unit of employee benefit entitlement and measures each unit separately to buildup the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.
I. Reconciliation of opening and closing balances of Defined Benefit obligation( in Lakhs)
2013-14 2012-13
Notes
Details Gratuity Earned Leave Sick Leave
(Funded) Encashment (Unfunded)
(Unfunded)
Defined Benefit obligation at beginning of the year. ( Current Year) 13146.87 3321.52 755.06
(Previous year) 13153.12 3431.04 780.70
Interest Cost (Current Year) 905.96 220.67 -
(Previous year) 1016.52 257.68 -
Current Service Costs (Current Year) 210.22 226.61 28.88
(Previous year) 281.49 384.61 (25.64)
Benefits Paid (Current Year) (3358.04) (1056.44) -
(Previous year) (2388.00) (799.12) -
Actuarial loss/(gain) on obligation (Current Year) 1386.16 986.20 -
(Previous year) 1083.74 47.31 -
Defined Benefit obligation at year end (Current Year) 12291.17 3698.56 783.94
(Previous year) 13146.87 3321.52 755.06
In respect of items mentioned under 1.4 and 1.5 above, the Company has been advised by the Counsel that
said demands and claims are not sustainable in law.
1.5.3 a) On rejection of claims towards L.D. and other claims by HSL,
M/s Good Earth Maritime Ltd., (G.M.L.) invoked arbitration clause for
the vessel No. VC 11115, VC 11116 , VC 11117 and VC-11136 and the
same is under arbitration.
b) In respect of Vessel No. VC 11118, VC 11137 to VC 11139 which
were delivered and VC 11140 which is under construction, no provision
towards LD is made, since the same is not applicable as per Contracts.
Total (1.5)
19932.74 13288.00
42012.57 33804.52
64 Hindustan Shipyard Limited
IV. Expenses recognized during the year (in the statement of Profit & Loss Account)
(` in lakhs)
Description Gratuity Leave Sick
(Funded) Encashment Leave
(unfunded) (Unfunded)
Current Service Cost (Current Year) 210.22 226.61 -
(Previous year) 281.49 384.61 (25.64)
Interest Cost (Current Year) 905.96 220.67 -
(Previous year) 1016.52 257.67 -
Expected return on plan assets (Current Year) (94.97) - -
(Previous year) (83.08) - -
Actuarial (gain)/loss (Current Year) 1384.80 986.20 -
(Previous year) 1079.68 47.31 -
Expenses recognized in the statement of P&L a/c (Current Year) 2406.01 1433.48 28.88
(Previous year) 2294.61 689.59 (25.64)
II. Reconciliation of opening and closing balances of fair value of plan assets
(` in lakhs)
Details 2013-14 2012-13
Fair value of plan assets at beginning of the period. 1010.31 923.17
Expected return on plan assets 94.97 83.08
Contribution 3358.04 2388.00
Benefits paid (3358.04) (2388.00)
Actuarial (loss)/gain on obligation (balancing figure) 1.37 4.06
Fair value of Plan Assets as at the end of the period 1106.65 1010.31
III. Reconciliation of fair value of assets and obligations as at 31/03/2014
(` in lakhs)
Gratuity Leave Sick Leave
Encashment (Unfunded)
(Unfunded)
Fair value of plan assets (Current Year) 1106.65 - -
(Previous year) 1010.31 - -
Present value of obligation(Current Year) 12291.17 3698.56 783.94
(Previous year) 13146.86 3321.52 755.06
Amount recognized in Balance Sheet(Current Year) 11184.52 3698.56 783.94
(Previous year) 12136.55 3321.52 755.06
Notes
65Annual Report 2013-14
V. Investment Details
(Percentage invested)
Description Gratuity as on Gratuity as on
31.03.14 31.03.13
GoI Securities - -
Special Deposit Scheme 12.00 13.00
Others (T.D.R.s) 88.00 87.00
Total : 100.00 100.00
VI. Principal Actuarial Assumptions
Gratuity (Funded)(%) Leave Encashment (Unfunded)(%)
31.03.2014 31.03.2013 31.03.2014 31.03.2013
Discount Rate 9.00 7.90 9.00 7.90
Salary escalation rate 7.00 3.00 7.00 3.00
Attrition rate 1.00 1.00 1.00 1.00
Expected rate of return on plan assets 9.50 9.40 - -
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.
( in lakhs)
2013-14 2012-13
Employer’s Contribution to Provident Fund 1162.20 1169.29
The Company’s Provident Fund is exempted under Section 17 of Employees’ Provident Fund Act, 1952.
The conditions for grant of exemption stipulate the employer shall make good deficiency, if any, in the
interest rate declared by the Trust vis-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.
Notes
66 Hindustan Shipyard Limited
3. SEGMENT REPORT
The company operates in Shipbuilding, Ship repair and Sub-marine Retrofit business segments. Information in respect
of the said segments as required by AS 17, issued by Institute of Chartered Accountants of India, is given here under
` in lakhs
Particulars Ship Ship Retrofit Un-allocated Total
building repairs
Segment Income:
Sales 22,394.61 6,786.75 14,556.26 - 43,737.62
Taxes collected 1,518.72 29.37 - - 1,548.09
Other operating income (scrap sales) - 54.28 - - 54.28
23,913.33 6,870.40 14,556.26 - 45,339.99
Other Income 1,120.58 4,840.11 220.64 385.32 6,566.65
Total Income 25,033.91 11,710.51 14,776.90 385.32 51,906.64
Segment Expenditure:
Materials (net of transfers) 15,385.35 694.57 2,273.68 - 18,353.60
Direct Expenses 3,971.94 615.84 5,366.83 - 9,954.61
Direct Labour 3,581.88 320.20 980.86 - 4,882.94
Service Tax, Sales Tax & Excise Duty 1,685.73 547.14 62.27 - 2,295.14
Total Segment expenditure 24,624.90 2,177.75 8,683.64 - 35,486.29
Segment Result 409.01 9,532.75 6,093.26 385.32 16,420.35
Overheads 8,375.36 2,308.23 2,664.52 4,938.59 18,286.70
Provisions and Adjustments 1,618.87 458.09 552.16 96.76 2,725.88
Extraordinary & Exceptional items - - - 28.74 28.74
Net Segment Result (9,585.22) 6,766.44 2,876.58 (4,678.77) (4,620.97)
Taxes - -
Total Result (9,585.22) 6,766.44 2,876.58 (4,678.77) (4,620.97)
Other information
Segment Assets 22,003.09 16,573.06 8,863.36 53,072.02 1,00,511.53
Segment Liabilities 52,889.06 24,807.58 22,562.00 1,11,999.81 2,12,258.45
Capital Expenditure - - - 545.76 545.76
Depreciation 558.91 39.70 153.91 - 752.52
Non-cash expenditure other than Dep. - - - - -
Notes
67Annual Report 2013-14
Notes
4 Information in respect of related parties in terms of AS 18, issued by
the Institute of Chartered Accountants of India are:
a) Related parties:
Key Management Personnel:
i) RAdm NK Mishra, NM, IN (Retd), Chairman & Managing Director.
ii) Shri. Rakesh Mahajan, Director (Finance & Commercial) up to 10
Oct 2013.
iii) Cmde KS Subramanian, NM, IN (Retd), Director (Shipbuilding).
iv) Cmde KLN Prasad, IN (Retd), Director (Corporate Planning &
Personnel).
v) Cmde Ashok Bhal, IN (Retd), Director (Strategic Projects)
b) Details of transactions carried out with the above stated related
parties:
Remuneration paid during the year (` In lakhs)
5 a) Net profit/(Loss) as per profit and loss account (` In lakhs)
b) Weighted average number of equity shares used as Denominator
for calculating EPS
c) Earnings per share: Profit/(Loss) – Basic `
6 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.
7 The estimated cost of completion of vessels under construction has
been revised to ` 193350 lakhs as at 31.3.2014 from ` 234339 lakhs as
at 31.3.2013
8 Provision towards interest on account of delays in making payments to
MSME units (23 nos.)
2013-14 2012-13
89.69 87.27
9. Materials Consumed
Description Unit 2013-14 2012-13
Qty Value Qty Value
` in lakhs ` in lakhs
Steel M.T 4465.74 2153.41 1316 537.82
Pipes Meters 9737.30 133.31 3842 19.99
Paints Litres 55784 120.79 122720 286.58
Pipe Fittings Nos. 16222 276.95 8024 83.28
Ship Machinery and Equipt. 11855.57 13335.64
Ship Repair Materials 657.20 3101.02
Retrofit Materials 2140.05 5734.65
Others 956.42 622.44
Total 18293.70 23721.42
(4620.97) (5517.39)
3019922 3019922
(153) (182)
-- --
193350 234339
5.93 --
68 Hindustan Shipyard Limited
i) Value of all Imported Materials including components and spare
parts consumed during the year. 12310.13 20776.78
ii) Value of all Indigenous Materials including components and spare
parts consumed during the year. 5983.57 2944.64
iii) Percentage of item (i) to total consumption. 67% 88%
iv) Percentage of item(ii) to total consumption . 33% 12%
2013-14 2012-13
Break up of Materials Consumed:
` in lakhs
10. Expenditure and Earnings in Foreign Currency
` In lakhs
2013-14 2012-13
1.1 i) Royalty, Know-how and Professional Consultancy fees - -
ii) Travelling Expenses - -
iii) Others 473.05 79.64
1.2 CIF value of imported materials, components & spare parts and
capital goods. 12444.34 10350.44
2 Earnings in Foreign Currency from ship repair activity 147.03 50.69
11. As per AS29 relating to Provisions – the movement of provisions in the books of account is as follows:
` In lakhs
Nature of provision Opening Provision Utilisation Closing
Balance made during / Reversal Balance
the year during the
year
Provision for Gratuity 12137 2406 3358 11185
(Previous Year) (12230) (2295) (2388) (12137)
Provision for Leave Salary 4077 1463 1057 4483
(Previous Year) (4212) (690) (825) (4077)
Provision for Liquidated Damages 7721 411 3531 4601
(Previous Year) (5556) (2165) - (7721)
Provision for Contingencies 136 160 136 160
(Previous Year) (97) (39) - (136)
Provision for Future Losses 6555 - 66 6489
(Previous Year) (8382) - (1827) (6555)
Provision for Guarantee Charges 901 410 551 760
(Previous Year) (1180) (20) (299) (901)
Provision for Doubtful Debts / Reductions in SR bills 2741 398 130 3009
(Previous Year) (1722) (1025) (6) (2741)
Provision for Doubtful Advances 91 100 - 191
(Previous Year) (98) - (7) (91)
Notes
69Annual Report 2013-14
12. Disclosure of information in respect of Ships under construction as per Accounting Standard-7 “Construction
Contracts”
In lakhs
Particulars / Nature of Vessel IPV’s 53K IPV’s 50T TUGS 25T TUGS 10T TUGS
(ICG) BULKERS (ICG) (KPT) (IN) (IN)
Vessel No: 11156-58 11140 11184 11165-72 11173-74 11175-77 11177-82
Owner ICG GEML ICG KPT NAVY NAVY
1 Contract Revenue Recognized
up to 31st March, 2014 10897 12829 5311 - 3227 286 -
2 Contract Expenses Recognized 18242 20195 5311 - 3483 311 -
3 Recognized Profits / (Losses) (7345) (7366) - - (256) (25) -
4 Expected Losses Recognized (762) (2116) - (2790) (431) (790) (441)
5 Total Recognized Profits / Losses (8107) (9482) - (2790) (687) (815) (441)
6 Advances Received 7859 12589 14503 9609 2736 1159 1252
7 Costs Relating to Future Activity 1977 5803 61380 49892 5866 10089 10790
8 Retention Amount 201 - - - - - -
8 Progressive Billing 8060 12589 14503 9609 2736 1159 1252
9 Gross Amount due from Customers 3038 240 - - 491 - -
10 Gross Amount due to Customers —— —— 9192 9609 —— 873 1252
13. Details of Remuneration to Chairman & Managing Director and other whole-time Directors:
( in lakhs)
S.No Particulars 2013-14
i. RAdm N.K.Mishra, NM, IN(Retd), Chairman & Managing Director 22.97
ii. Shri. Rakesh Mahajan, Director (Finance & Commercial) (up to 10 Oct 2013) 9.90
iii. Cmde K.S.Subramanian, NM, IN (Retd), Director (Shipbuilding) 18.15
iv. Cmde K.L.N.Prasad, IN (Retd), Director (Corporate Planning & Personnel) 19.66
v. Cmde Ashok Bhal, IN (Retd), Director (Strategic Projects) 19.01
Total 89.69
Notes
70 Hindustan Shipyard Limited
Notes
14 (a) GoI sanctioned an amount of Rs 457.36 Cr in Dec 2011 for “Refurbishment and Replacement of
Machinery and Infrastructure (RRMI) at HSL. As per the sanction, HSL would submit utilization
certificate within one year and in case of non-utilization of the sanctioned amount within one
year, interest earned on the unutilized funds would be credited to the Govt. Accordingly, interest
earned within one year of Rs 42.18 Cr was accounted as ‘other income’ in the years 2011-12 &
2012-13. However, since Govt. Audit had taken a different view on the accounts for FY 2012-13
that the said interest of Rs 42.18 Cr was to be shown as a liability of HSL, the company had
taken up with MoD for clarification / approval for retention of the said interest. Further to the
above, the company submitted a Fresh Financial Restructuring Proposal in Feb 2014 in which
interest earned on RRMI funds was included in the said proposal and the same is under active
consideration of GoI. View said position, no provision was made towards the said interest of
Rs 42.18 Cr.
(b) No provision is also made towards notional interest of Rs 5.53 Cr on RRMI funds utilized for
ship construction & submarine repair works on replenishment basis, since as per the sanction
letter interest earned will be credited to the Government and accordingly actual interest earned
only has been included in the above said FFR proposal.
15 Reconciliation of balances as per price stores ledger and Bin Cards is a continuous process.
16 Certain Advances and Provisional Liabilities for Purchases remain unadjusted, pending link-up between
the same.
17 Balances of Debtors / Creditors are subject to confirmation / reconciliation.
18 Previous year’s figures have been regrouped / rearranged wherever necessary.
For and on behalf of the Board of Directors In terms of our report of even date attachedFor B.V. Rao & Co
Chartered AccountantsSd/- Sd/- Firm Reg. No.003118S
Cmde KS SUBRAMANIAN, NM, IN (Retd) R Adm N K MISHRA, NM, IN (Retd)Director (Shipbuilding) Chairman and Managing Director Sd/-
CA B. Vinay Kumar(Partner)
Sd/- Sd/- M. No. 223723INAITULA BAIG VRS NAGA SARMA
Company Secretary General Manager (Finance) &
Place : New Delhi Chief Financial OfficerDate : 11 Jul 2014
71Annual Report 2013-14
For and on behalf of the Board of Directors As per our report of even dateFor B.V. Rao & Co
Chartered AccountantsSd/- Sd/- Firm Reg. No.003118S
Cmde KS SUBRAMANIAN, NM, IN (Retd) R Adm N K MISHRA, NM, IN (Retd)Director (Shipbuilding) Chairman and Managing Director Sd/-
CA B. Vinay Kumar(Partner)
Sd/- Sd/- M. No. 223723INAITULA BAIG VRS NAGA SARMA
Company Secretary General Manager (Finance) &
Place : New Delhi Chief Financial OfficerDate : 11 Jul 2014
Particulars Year ended Year ended
31-March-2014 31-March-2013
A. Cash flow from operating activities:
Net Profit/(loss) before Extraordinary, Prior period items & FE variation (3,876.36) (4,676.34)
Adjustments for:
Depreciation 754.15 817.29
Interest & Finance charges 925.52 1,777.08
Foreign exchange variation 96.95 -
Interest received (141.19) (3,634.79)
Loss/(profit) on sale of fixed assets (1.41) -
Operating Cash flow before working capital changes, Extraordinary
& Prior Period items (2,242.34) (5,716.76)
Exceptional & Extra-ordinary items 28.74 -
Prior Period items: Net Expenditure 812.82 841.05
Operating Cashflow before working capital changes & after
Extraordinary & Prior Period items (3,083.90) (6,557.81)
Adjustments for working capital changes:
Inventories (39.21) 11,749.74
Trade and other receivables 3,802.16 (4,984.60)
Trade and other payables (5,834.32) (6,130.35)
Cash generated from operation (A) (5,155.27) (5,923.02)
B. Cashflow from Investing acitivities:
Purchase of fixed assets (545.76) (875.35)
Capital Work-in-progress 458.36 287.70
Sale of fixed assets 1.60 -
Interest received 141.19 3,634.79
Net Cash from investing operation (B) 55.39 3,047.14
C. Cashflow from financing activities:
Proceeds from Share Capital - -
Proceeds from Borrowings from GOI & Banks (752.15) (121.98)
Interest paid (925.52) (1,777.08)
Net Cash from financing operation (C) (1,677.67) (1,899.06)
D. Net Increase in Cash & Cash
Equivalent (A)+(B)+(C) (6,777.55) (4,774.94)
Exceptional & Extraordinary items
Cash and cash equivalent at the beginning of the year 47,184.49 51,959.43
Cash and cash equivalent at the end of the year 40,406.94 47,184.49
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH, 2014
` in lakhs
Cash Flow Statement
72 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 31 MARCH 2014
Description 2013-14 2012-13
Details Details Total Details Details Total
EXPENDITURE ON TOWNSHIP
AND RESIDENTIAL QUARTERSAdministration & Maintenance:
Salaries, Wages & Other Benefits 370.89 367.95
Housing Estate Site Rent 16.07 16.03
Property Tax on Residential Buildings 9.95 1.57
Electricity and Water Charges 223.81 147.80
Repairs and Maintenance 125.51 71.64
Colony Security 49.89 69.40
Miscellaneous Expenditure 6.59 802.71 7.63 682.02
Depreciation 9.66 9.92
812.37 691.94
Less: Income-Rent 179.35 90.66
Electricity and Water Charges 76.70 256.05 556.32 81.16 171.82 520.12
Expenditure on Social Overheads:
Schools and Educational Facilities 28.45 43.68
Less: Educational Grant (26.16) 2.29 (39.07) 4.61
On Medical facilities 647.85 458.78
On Subsidised Canteen 177.57 177.29
On Subsidised lunch 257.04 434.61 232.31 409.60
On Subsidised transport :
Boats and launches 54.19 54.19 57.49
On Social & Cultural Activities 0.53 1139.47 0.53 931.01
1695.79 1451.13
Expenditure on Public Relations and
Publicity:
Salaries 8.67 13.11
Publicity 1.37 0.49
10.03 13.60
(` in lakhs)
Social Overheads
NOTES:
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 `.139.33 lakhs as on 31.03.2014) has not been taken into account since this has beenfinalised out of Equity Share Capital except for an amount of Rs.0.45 lakhs out of grant of Andhra Pradesh in respect ofGandhigram High School.
2. The figures of Township Expenditure and Income have been collected only to the extent practicable from the accountsof 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/-Cmde KS SUBRAMANIAN, NM, IN (Retd) R Adm N K MISHRA, NM, IN (Retd)
Director (Shipbuilding) Chairman and Managing Director
Sd/- Sd/-INAITULA BAIG VRS NAGA SARMA
Company Secretary General Manager (Finance) &
Place : New Delhi Chief Financial OfficerDate : 11 Jul 2014
73Annual Report 2013-14
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62
.12
0.0
00
.00
56
2.1
24
13
.13
9.6
60
.00
42
2.7
91
39
.33
14
8.9
9
Pre
vio
us
Yea
r5
62
.12
0.0
00
.00
56
2.1
24
03
.21
9.9
20
.00
41
3.1
31
48
.99
15
8.9
1
F
or
an
d o
n b
eh
alf
of
the
Bo
ard
of
Dir
ect
ors
Cm
de
KS
SU
BR
AM
AN
IAN
, N
M,
IN (
Re
td)
R A
dm
N K
MIS
HR
A,
NM
, IN
(R
etd
)
Dir
ect
or
(Sh
ipb
uil
din
g)
Ch
air
ma
n a
nd
Ma
na
gin
g D
ire
cto
r
INA
ITU
LA B
AIG
VR
S N
AG
A S
AR
MA
Co
mp
an
y S
ecr
eta
ryG
en
era
l M
an
ag
er
(Fin
an
ce)
&
Ch
ief
Fin
an
cia
l O
ffic
er
Pla
ce :
Ne
w D
elh
iD
ate
: 1
1 J
ul
20
14
74 Hindustan Shipyard Limited
10 Years at a GlanceFIN
AN
CIA
L P
OS
ITIO
N A
ND
PE
RFO
RM
AN
CE
OF T
HE
CO
MP
AN
Y
(` i
n c
rore
s)
20
04
-05
20
05
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
20
13
-14
BA
LAN
CE
SHEE
T:
EQU
ITY
& L
IAB
ILIT
IES
Shar
eh
old
ers
’ fu
nd
s
Shar
e
Cap
ital
13
6.8
11
44
.31
14
9.3
12
81
.01
30
1.9
93
01
.99
30
1.9
93
01
.99
30
1.9
93
01
.99
Res
erv
es a
nd
Su
rplu
s(1
16
3.2
5)
(11
57
.06
)(8
56
.13
)(8
47
.32
)(9
87
.33
)(9
85
.00
)(9
30
.01
)(1
01
5.9
9)
(10
71
.16
)(1
11
7.3
7)
No
n-c
urr
en
t Li
ab
ilit
ies
:
Lon
g te
rm b
orr
ow
ings
98
1.4
49
81
.69
61
0.6
95
24
.72
55
9.1
55
93
.83
627
.67
372
.21
372
.21
372
.21
Oth
er
lon
g tr
m l
iab
iliti
es6
.08
6.0
86
.08
6.3
66
.36
6.3
61
1.9
99
.83
11
.91
15
.72
Lon
g te
rm p
rovi
sio
ns
39
.67
43
.63
10
6.1
71
14
.02
12
9.6
19
5.8
81
57
.61
17
9.0
91
24
.30
11
9.7
5
Cu
rre
nt
Lia
bil
itie
s :
Sho
rt t
erm
bar
row
ings
6.4
46
.83
70.4
78
9.7
86
8.2
49
6.4
09
3.2
01
04
.82
10
3.6
09
6.0
8
Trad
e p
ayab
les
20
0.3
31
13
.66
12
8.9
41
57
.40
13
4.8
72
19
.03
16
9.0
61
66
.85
19
2.7
72
02
.43
Oth
er
curr
en
t l
iab
iliti
es1
46
.10
49
5.3
76
86
.61
61
7.8
46
92
.06
67
7.7
86
79
.71
978
.62
89
0.6
08
57
.29
Sho
rt t
erm
pro
visi
on
s2
0.9
02
4.3
26
3.6
137
.76
37.0
33
2.7
21
23
.21
18
2.2
91
90
.97
15
7.0
2
Tota
l3
74
.52
65
8.8
39
65
.75
98
1.5
79
41
.98
10
38
.99
12
34
.43
12
79
.71
11
17
.19
10
05
.12
ASS
ET
S
No
n-c
urr
en
t a
sse
ts:
Fixe
d a
sse
ts -
Tan
gib
le4
1.9
43
9.3
14
4.5
35
3.4
06
3.7
16
8.7
776
.84
75
.38
75
.96
73
.84
- I
nta
ngi
ble
0.0
00
.00
0.0
00
.87
0.1
70
.00
0.0
00
.00
0.0
00
.04
-
Cap
ital
wo
rk in
pro
gres
s0
.20
0.5
24
.01
6.2
35
.16
12
.47
12
.41
4.4
41
1.5
66
.97
Lon
g te
rm l
oan
s an
d a
dva
nce
s2
.45
2.7
83
.10
3.5
43
.08
3.3
03
.17
2.9
53
.81
4.1
8
Oth
er
no
n-c
urr
en
t as
sets
0.0
00
.00
11
3.2
21
05
.67
11
3.1
01
23
.99
10
7.1
41
09
.72
82
.22
74.1
3
Cu
rre
nt
Ass
ets
:
Inve
nto
rie
s9
2.3
61
55
.38
13
2.0
62
53
.55
372
.15
478
.90
33
1.6
52
53
.19
13
5.6
91
36
.09
Trad
e r
ece
ivab
les
14
0.6
55
1.4
91
40
.55
14
8.0
51
17
.23
11
0.0
71
39
.60
12
8.7
82
30
.16
17
8.8
8
Cas
h &
cas
h e
qu
ival
en
ts2
7.5
21
84
.19
28
1.7
02
11
.84
11
5.4
76
0.3
13
05
.86
51
9.5
947
1.8
44
04
.07
Sho
rt t
erm
lo
ans
and
ad
van
ces
66
.82
13
5.3
61
64
.67
12
6.7
21
18
.83
11
7.6
41
47
.28
76.0
54
6.6
827
.75
Oth
er
curr
en
t as
sets
2.5
88
9.8
08
1.9
17
1.7
03
3.0
86
3.5
41
10
.50
99
.61
59
.27
99
.17
Tota
l3
74
.52
65
8.8
39
65
.75
98
1.5
79
41
.98
10
38
.99
12
34
.44
12
79
.71
11
17
.19
10
05
.12
Net
Wo
rth
(10
26
.44
)(1
01
2.7
5)
(70
6.8
2)
(56
6.3
1)
(68
5.3
4)
(68
3.0
1)
(62
8.0
2)
(71
4.0
0)
(76
9.1
7)
(81
5.3
8)
*Ne
t W
ort
h =
Pai
d u
p C
apit
al+
Res
erv
es a
nd
Su
rplu
s
75Annual Report 2013-14
10 Years at a Glance
FIN
AN
CIA
L P
OS
ITIO
N A
ND
PE
RFO
RM
AN
CE
OF T
HE
CO
MP
AN
Y
(` i
n c
rore
s)
20
04
-05
20
05
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
20
13
-14
PR
OFI
T A
ND
LO
SS A
CC
OU
NT:
Inco
me
:
Ship
bu
ildin
g7
9.4
71
39
.94
15
9.9
52
02
.15
19
4.1
72
53
.61
29
1.4
92
54
.76
19
6.0
82
39
.14
Ship
re
pai
rs1
35
.12
87
.90
93
.02
10
8.4
61
44
.13
26
6.0
427
7.3
81
93
.51
15
2.9
76
8.7
0
Re
tro
fit
10
.71
15
.74
74.6
67
3.9
157
.52
99
.31
83
.27
11
5.7
71
34
.79
14
5.5
6
Wo
rk-i
n-P
rogr
ess
(10
.07
)2
8.2
94
5.6
04
1.3
66
4.3
2(1
0.5
3)
(48
.29
)0
.00
0.0
00
.00
Oth
er
Inco
me
21
.75
47.0
12
6.5
48
4.2
63
8.1
45
3.6
03
4.0
34
0.3
07
8.6
66
5.6
7
Tota
l2
36
.98
31
8.8
83
99
.77
51
0.1
44
98
.28
66
2.0
36
37
.88
60
4.3
45
62
.50
51
9.0
7
Exp
en
dit
ure
:
Mat
eri
als
10
3.0
81
44
.54
19
0.1
92
22
.55
26
4.6
63
44
.57
44
1.5
22
55
.85
23
8.3
91
86
.05
Dir
ect
Exp
en
ses
39
.65
43
.60
80
.16
89
.88
62
.10
94
.39
79
.78
99
.07
76.9
19
9.5
5
Pay
& B
en
efi
ts7
7.8
88
2.6
79
2.6
48
0.9
11
26
.93
12
9.8
92
57.4
81
99
.90
18
3.0
61
87
.90
Taxe
s an
d D
uti
es4
.29
8.5
91
3.4
92
0.3
72
8.6
82
3.2
52
4.5
02
9.6
62
0.8
12
2.9
5
Oth
er
Exp
en
ses
14
.23
15
.50
19
.12
25
.91
31
.03
27.8
52
6.8
22
8.4
72
6.4
227
.40
Pro
visi
on
s an
d L
oss
es8
.48
14
.03
45
.15
8.7
41
4.0
71
8.6
77
1.8
95
6.3
43
3.0
81
9.1
3
Pri
or
pe
rio
d A
dju
stm
en
ts(0
.86
)(1
.92
)(3
87
.40
)(7
.66
)5
4.4
43
.46
5.6
35
.21
8.4
18
.13
Exce
pti
on
al i
tem
s0
.00
0.0
04
1.3
10
.08
0.0
00
.00
0.0
00
.00
7.5
90
.29
Tran
sfe
rs(1
1.6
4)
(3.3
2)
(3.8
4)
(4.4
5)
(4.3
2)
(5.1
2)
(4.2
8)
(3.9
7)
(2.6
6)
(2.9
0)
Tota
l2
35
.11
30
3.6
99
0.8
24
36
.33
57
7.5
96
36
.96
90
3.3
46
70
.53
59
2.0
15
48
.50
Pro
fit
/ (L
oss
) b
efo
re i
nte
rest
,
De
pre
ciat
ion
1.8
71
5.1
93
08
.95
73
.81
(79
.31
)2
5.0
7(2
65
.46
)(6
6.1
9)
(29
.51
)(2
9.4
3)
Gra
nt
fro
m G
oI
0.0
00
.00
0.0
00
.00
0.0
00
.00
45
2.6
80
.00
0.0
00
.00
De
pre
ciat
ion
4.1
54
.07
4.0
65
.82
6.9
36
.46
7.6
87
.97
7.8
97
.53
Inte
rest
5.6
14
.93
34
.70
44
.51
50
.49
52
.41
14
.35
11
.82
17
.77
9.2
5
Pro
fit
/ (L
oss
) b
efo
re t
ax(7
.89
)6
.19
270
.19
23
.48
(13
6.7
3)
(33
.80
)1
65
.19
(85
.98
)(5
5.1
7)
(46
.21
)
Inco
me
Tax
0.0
00
.00
78
.27
5.4
96
.85
(31
.86
)4
4.8
30
.00
0.0
00
.00
MA
T cr
edit
en
eti
tle
me
nt
0.0
00
.00
0.0
00
.00
0.0
00
.00
(44
.83
)0
.00
0.0
00
.00
Def
erre
d T
ax (
asse
t) /
lia
bili
ty0
.00
0.0
0(1
09
.01
)6
.66
(3.5
7)
(4.2
6)
11
0.1
90
.00
0.0
00
.00
Net
Pro
fit
/ (L
oss
)(7
.89
)6
.19
30
0.9
31
1.3
3(1
40
.01
)2
.32
55
.00
(85
.98
)(5
5.1
7)
(46
.21
)
Pro
fit
& L
oss
Ap
pro
pri
atio
n0
.00
0.0
00
.00
2.5
20
.00
0.0
00
.00
0.0
00
.00
0.0
0
Cu
mu
lati
ve P
rofi
t /
(Lo
ss)
(11
63
.35
)(1
15
7.1
6)
(85
6.2
3)
(84
7.4
2)
(98
7.4
3)
(98
5.1
0)
(93
0.1
0)
(10
16
.08
)(1
07
1.2
5)
(11
17
.47
)
76 Hindustan Shipyard Limited
HIN
DU
STA
N S
HIP
YA
RD
LIM
ITE
D :
: V
ISA
KH
AP
AT
NA
M
SH
IPS
BU
ILT
S.N
O.
Nam
e of
the
Shi
p /
Nam
e of
the
Ow
ner
Dead
Wei
ght
Date
of
Layi
ngDa
te o
fDa
te o
f
Tonn
esKe
elLa
unch
ing/
Floa
ting
Del
iver
y
1.
“Ja
lau
sha
” T
he
Sci
nd
ia S
tea
m N
avi
ga
tio
n C
o.
Ltd
.,8
.17
92
2-0
6-1
94
61
4-0
3-1
94
82
6-1
0-1
94
8
2.
“Ja
lap
rab
ha
” T
he
Sci
nd
ia S
tea
m N
avi
ga
tio
n C
o.
Ltd
.,8
.17
92
2-0
8-1
94
62
0-1
1-1
94
80
7-0
4-1
94
9
3.
“Ku
tub
tari
” (P
ass
en
ge
r Fe
rry)
Th
e S
cin
dia
Ste
am
Na
vig
ati
on
Co
Ltd
.,-
23
-05
-19
47
18
-12
-19
48
19
-05
-19
49
4.
“Ja
lap
raka
sh”
Th
e S
cin
dia
Ste
am
Na
vig
ati
on
Co
. Lt
d.,
8.1
38
27
-05
-19
48
08
-08
-19
49
20
-12
-19
49
5.
“Ja
lap
an
kh
i” T
he
Sci
nd
ia S
tea
m N
avi
ga
tio
n C
o.
Ltd
8.1
50
07
-10
-19
49
06
-12
-19
49
04
-04
-19
50
6.
“Ja
lap
ad
ma
” T
he
Sci
nd
ia S
tea
m N
avi
ga
tio
n C
o.
Ltd
.,8
.13
72
6-0
1-1
95
01
4-0
9-1
95
01
8-0
1-1
95
1
7.
“Ja
lap
ala
ka”
Th
e S
cin
dia
S
tea
m N
avi
ga
tio
n C
o.
Ltd
.,8
.14
12
6-0
1-1
95
02
7-1
2-1
95
00
3-0
4-1
95
1
8.
“Bh
ara
tmit
ra”
Th
e B
ha
rat
Lin
e L
imit
ed
8.1
34
28
-09
-19
50
26
-03
-19
51
02
-07
-19
51
9.
“Ja
gra
ni”
Th
e G
rea
t E
ast
ern
sh
ipp
ing
Co
mp
an
y L
imit
ed
8.1
25
09
-05
-19
51
15
-12
-19
51
09
-06
-19
52
10
.“J
ala
pra
tap
” T
he
Sci
nd
ia S
tea
m N
avi
ga
tio
n C
o.
Ltd
.,8
.12
50
9-0
5-1
95
12
7-0
2-1
95
20
9.0
8.1
95
2
11
.“J
ala
pu
shp
a”
Th
e S
cin
dia
Ste
am
Na
vig
ati
on
Co
. Lt
d.,
8.0
87
26
-12
-19
51
09
-07
-19
52
17
-10
-19
52
12
.“B
ha
ratr
atn
a”
Th
e B
ha
rat
Lin
e L
imit
ed
8.1
00
21
-07
-19
52
26
-08
-19
53
15
-07
-19
54
13
.“J
ala
pu
tra
” T
he
Sci
nd
ia S
tea
m N
avi
ga
tio
n C
o.
Ltd
.,8
.11
42
1-0
7-1
95
20
9-1
1-1
95
31
9-0
8-1
95
4
14
.“J
ala
vih
ar”
Th
e S
cin
dia
Ste
am
Na
vig
ati
on
Co
., L
td.,
7.2
48
01
-12
-19
53
16
-08
-19
54
22
-06
-19
55
15
.“J
ala
vija
ya”
Th
e S
cin
dia
Ste
am
Na
viga
tio
n C
o.,
Ltd
.,7
.31
13
0-0
9-1
95
32
6-0
3-1
95
52
9-1
2-1
95
5
16
.“V
idyu
t” L
an
d C
ust
om
s D
ep
art
me
nt
(Mo
tor
Lau
nch
)1
9-1
0-1
95
31
8-0
8-1
95
41
8-0
3-1
95
8
17
.“J
ala
vish
nu
” T
he
Sci
nd
ia S
tea
m N
avi
ga
tio
n C
o.
Ltd
7.3
22
16
-12
-19
53
02
-11
-19
55
23
-05
-19
56
18
.“S
tate
of
Ku
tch
” T
he
Ea
ste
rn S
hip
pin
g C
orp
ora
tio
n L
imit
ed
8.2
53
02
-09
-19
54
29
-03
-19
56
25
-11
-19
56
19
.“A
dya
r” M
ad
ras
Po
rt T
rust
(Ko
rt N
ozz
le T
ug
)2
7-0
9-1
95
43
1-1
2-1
95
52
5-0
9-1
95
7
20
.“A
nd
am
an
s” M
inis
try o
f H
om
e A
ffa
irs
2.4
70
(Pa
sse
ng
er
cum
Ca
rgo
Ve
sse
l)1
0-0
8-1
95
52
5-0
7-1
95
60
4-1
2-1
95
7
21
.“S
tate
of
Ori
ssa
” T
he
Ea
ste
rn S
hip
pin
g C
orp
ora
tio
n L
td.,
8.1
60
08
-12
-19
55
16
-02
-19
57
31
-12
-19
57
Ships Built
77Annual Report 2013-14
22
.“J
ala
vikra
m”
Th
e S
cin
dia
Ste
am
Na
vig
ati
on
Co
., L
td7
.31
21
6-0
4-1
95
62
9-0
7-1
95
72
6-0
3-1
95
8
23
.“J
ala
vee
ra”
Th
e S
cin
dia
Ste
am
Na
vig
ati
on
Co
., L
td.,
7.3
12
04
-08
-19
56
22
-11
-19
57
26
-07
-19
57
24
.“J
ag
mit
ra”
Th
e G
rea
t E
ast
ern
Sh
ipp
ing
Co
mp
an
y L
td.,
6.3
91
31
-08
-19
57
05
-07
-19
58
10
-06
-19
59
25
.“D
hru
vak”
Ind
ian
Na
vy
(Mo
ori
ng
Ve
sse
l)2
7-0
1-1
95
61
6-0
7-1
95
81
6-1
1-1
95
9
26
.“I
nd
ian
In
du
stry
” T
he
In
dia
Ste
am
ship
Co
mp
an
y Lt
d.,
6.4
19
07
-12
-19
57
12
-12
-19
58
27
-10
-19
59
27
.“J
aya
laksh
mi”
Ne
w D
ho
lera
Ste
am
ship
s Li
mit
ed
5,4
05
22
-08
-19
57
22
-04
-19
59
27
-01
-19
60
28
.“S
tate
of
Utt
ar
Pra
de
sh”
Th
e E
ast
ern
Sh
ipp
ing
Co
rpo
rati
on
Ltd
.,9
,63
20
3-1
0-1
95
93
1-1
2-1
95
91
6-0
1-1
96
1
29
.“R
.S.V
. H
ald
ia”
Ca
lcu
tta
Po
rt C
om
mis
sio
ne
rs(P
ort
Su
rve
y V
ess
el)
16
-11
-19
60
11
-06
-19
60
25
-03
-19
61
30
.“S
tate
of
Ra
jast
ha
n”
Th
e E
ast
ern
Sh
ipp
ing
Co
rpo
rati
on
Ltd
.,9
,64
42
2-0
1-1
95
92
9-0
4-1
96
01
8-0
5-1
96
1
31
.“V
ish
van
idh
i” T
he
We
ste
rn S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,9
,66
61
1-0
5-1
95
90
6-0
9-1
96
00
2-1
0-1
96
1
32
.“S
tate
of
Pu
nja
b”
Th
e S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,1
2,5
57
02
-12
-19
59
16
-04
-19
61
06
-04
-19
62
33
.“V
ish
va S
ha
nti
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,60
62
9-0
9-1
96
02
5-0
1-1
96
11
4-0
9-1
96
2
34
.“V
ish
va P
rem
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,56
52
7-0
8-1
96
02
0-1
2-1
96
12
8-0
1-1
96
3
35
.“V
ish
va M
aya
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,57
72
2-0
9-1
96
00
6-0
4-1
96
23
0-0
4-1
96
3
36
.“V
ish
va M
an
ga
l” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,60
80
5-0
5-1
96
11
7-0
8-1
96
22
3-0
9-1
96
3
37
.“J
ala
Ka
la”
Th
e S
cin
dia
Ste
am
Na
vig
ati
on
Co
., L
td.,
12
,91
31
2-1
0-1
96
12
9-0
3-1
96
31
2-1
1-1
96
4
38
.“D
ars
ha
k”
Ind
ian
Na
vy
(Su
rve
y V
ess
el)
14
-10
-19
57
02
-11
-19
59
28
-12
-19
64
39
.“S
tate
of
Ma
dh
ya P
rad
esh
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,87
30
8-0
1-1
96
21
5-1
0-1
96
30
4-0
5-1
96
5
40
.“R
oh
ini”
Hin
du
sta
n S
hip
yard
Lim
ite
d(L
au
nch
)2
0-0
8-1
96
5
41
.“J
ala
Ke
nd
ra”
Th
e S
cin
dia
Ste
a N
avi
ga
tio
n C
o.,
Ltd
.,1
2,9
47
24
-05
-19
62
16
-04
-19
64
29
-01
-19
66
42
.“S
tate
of
We
st B
en
ga
l” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,91
50
6-0
9-1
96
20
5-1
2-1
96
43
1-0
3-1
96
6
43
.“J
ala
kan
ta”
Th
e S
cin
dia
Ste
am
Na
vig
ati
on
Co
., L
td.,
12
,91
22
6-0
4-1
96
30
1-0
7-1
96
50
2-0
8-1
96
6
44
.“S
tate
of
Myso
re”
Th
e S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,1
2,9
23
13
-11
-19
63
09
-12
-19
65
11
-10
-19
66
S.N
O.
Nam
e of
the
Shi
p /
Nam
e of
the
Ow
ner
Dead
Wei
ght
Date
of
Layi
ngDa
te o
fDa
te o
f
Tonn
esKe
elLa
unch
ing/
Floa
ting
Deliv
ery
Ships Built
78 Hindustan Shipyard Limited
S.N
O.
Nam
e of
the
Shi
p /
Nam
e of
the
Ow
ner
Dead
Wei
ght
Date
of
Layi
ngDa
te o
fDa
te o
f
Tonn
esKe
elLa
unch
ing/
Floa
ting
Deliv
ery
45
.“V
ish
va T
ej”
Th
e S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,1
2,8
86
04
-05
-19
64
01
-10
-19
66
02
-10
-19
67
46
.“V
ish
va T
irth
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,88
60
8-0
1-1
96
52
8-1
2-1
96
60
3-1
2-1
96
7
47
.“V
ish
va S
eva
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,95
92
3-0
8-1
96
52
6-1
96
70
2-0
3-1
96
8
48
.“V
ish
va S
idd
hi”
Th
e S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,1
2,9
72
24
-12
-19
65
15
-11
-19
67
12
-09
-19
68
49
.“V
ish
va B
ha
kti
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,93
72
3-0
1-1
96
81
5-0
4-1
96
82
9-0
1-1
96
9
50
.“V
ish
va S
ho
ba
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,93
11
3-0
2-1
96
72
4-0
9-1
96
81
1-0
5-1
96
9
51
.“V
ish
va S
ha
kti
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,90
01
9-0
5-1
96
72
0-0
3-1
96
91
7-1
2-1
96
9
52
.“V
ish
va D
ha
rma
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
12
,85
22
2-1
1-1
96
70
8-1
0-1
96
92
0-0
4-1
97
0
53
.“V
ish
va V
ikra
m”
Th
e S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,1
2,8
81
06
-06
-19
68
09
-02
-19
70
12
-09
-19
70
54
.“S
ha
nti
” T
he
Vis
akh
ap
atn
am
Po
rt T
rust
Lau
nch
12
-03
-19
70
14
-12
-19
70
31
-12
-19
70
55
.“V
ish
va S
ars
ha
n”
Th
e S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,1
2,8
83
16
-12
-19
68
20
-07
-19
70
02
-07
-19
71
56
.“W
alc
ha
nd
” H
ind
ust
an
Sh
ipya
rd L
imit
ed
(La
nd
ing
Cra
ft)
01
-05
-19
71
14
-07
-19
71
30
-09
-19
71
57
.“V
ish
va N
aya
k”
Th
e S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,1
2,8
81
26
-06
-19
69
30
-11
-19
70
22
-10
-19
71
58
.“
T.S
. R
aje
nd
ra”
Th
e D
ire
cto
rate
Ge
ne
ral
of
Sh
ipp
ing
(Tra
inin
g S
hip
)2
0-1
0-1
96
92
5-0
4-1
97
12
7-0
3-1
97
2
59
.“B
om
ba
y D
uck
-II”
Th
e V
isa
kh
ap
atn
am
Po
rt T
rust
(Dre
dg
er)
27
-08
-19
71
12
-07
-19
72
11
-02
-19
73
60
.“V
ish
va K
aru
na
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
13
,96
72
6-0
8-1
97
00
2-1
1-1
07
10
2-0
3-1
97
3
61
.“V
ish
va Y
ash
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
13
,98
61
8-0
3-1
97
01
7-0
3-1
97
21
8-0
5-1
97
3
62
.“V
ish
va M
am
ta”
Th
e S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,1
3,9
71
23
-12
-19
70
23
-08
-19
72
16
-10
-19
73
63
.“V
ish
va B
an
da
n”
Th
e S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,1
3,7
65
30
-06
-19
71
06
-03
-19
73
04
-03
-19
74
64
.V
ish
va M
ad
hu
ri”
Th
e S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,1
3,7
62
25
-11
-19
71
17
-08
-19
73
16
-08
-19
74
65
.“I
nd
ian
En
du
ran
ce”
Ind
ia S
tea
m S
hip
Co
mp
an
y L
td.,
14
,19
72
9-0
3-1
97
22
6-0
1-1
97
41
6-0
3-1
97
5
66
.“J
ag
Do
ot”
Th
e G
rea
t E
ast
ern
Sh
ipp
ing
Co
mp
an
y L
td.,
21
,29
81
1-0
9-1
97
22
2-0
6-1
97
42
3-0
3-1
97
5
67
.“J
ag
at
Pri
ya”
De
mp
o S
tem
ship
s Lt
d.,
21
,39
33
0-0
8-1
97
30
3-1
0-1
97
43
0-1
1-1
97
5
Ships Built
79Annual Report 2013-14
S.N
O.
Nam
e of
the
Shi
p /
Nam
e of
the
Ow
ner
Dead
Wei
ght
Date
of
Layi
ngDa
te o
fDa
te o
f
Tonn
esKe
elLa
unch
ing/
Floa
ting
Deliv
ery
68
.“S
ag
ari
ka-1
” O
il &
Na
tura
l G
as
Co
mm
issi
on
(Su
pp
ly c
um
Cre
w V
esse
l)0
5-0
4-1
97
40
7-0
8-1
97
52
8-0
2-1
97
6
69
.“J
ag
Dh
ir”
Th
e G
rea
t E
ast
ern
Sh
ipp
ing
Co
mp
an
y L
td.,
21
,38
32
8-0
1-1
97
41
4-0
3-1
97
52
0-0
3-1
97
6
70
.“S
ag
ari
ka-2
” O
il &
Na
tura
l G
as
Co
mm
issi
on
(Su
pp
ly c
um
Cre
w V
esse
l)1
8-1
2-1
97
43
0-1
1-1
97
53
0-0
3-1
97
6
71
.“J
ag
Dh
arm
a”
Th
e G
rea
t E
ast
ern
Sh
ipp
ing
Co
mp
an
y L
td.,
21
,42
02
6-0
6-1
97
42
4-0
7-1
97
50
6-0
9-1
97
6
72
.“I
nd
ian
Exp
lore
r” I
nd
ia S
tea
m S
hip
Co
mp
an
y L
td.,
14
,08
90
7-1
0-1
97
41
7-1
1-1
97
53
0-1
0-1
97
6
73
.“J
ag
De
esh
” T
he
Gre
at
Ea
ste
rn S
hip
pin
g C
om
pa
ny L
td.,
21
,40
61
6-0
3-1
97
63
0-0
3-1
97
61
2-0
3-1
97
7
74
.“D
am
od
ar
Ga
nga
” D
am
od
ar
Bu
lk C
arr
iers
Ltd
.,2
1,3
65
26
-07
-19
75
24
-10
-19
76
25
-06
-19
77
75
.“I
nd
ian
Gra
ce”
Ind
ia S
tea
m S
hip
Co
mp
an
y Lt
d.,
21
,28
32
1-1
1-1
97
52
3-1
2-1
97
62
9-0
3-1
97
8
76
.“I
nd
ian
Glo
ry”
Ind
ian
Ste
am
Sh
ip C
om
pa
ny L
td.,
21
,34
42
6-0
2-1
97
60
4-0
8-1
97
72
7-1
0-1
97
8
77
.`“
Jala
Go
da
vari
” T
he
Sci
nd
ia S
tea
m N
avi
ga
tio
n C
om
pa
ny L
td.,
20
,91
40
2-0
7-1
97
61
6-0
3-1
97
81
6-0
4-1
97
9
78
.“J
ala
go
vin
d”
Th
e S
cin
dia
Ste
am
Na
vig
ati
on
Co
mp
an
y L
td,
20
,86
82
5-1
0-1
97
60
3-1
1-1
97
80
5-1
2-1
97
9
79
.“J
ala
go
pa
l” T
he
Sci
nd
ia S
tea
m N
avi
ga
tio
n C
om
pa
ny L
td.,
20
,85
01
2-0
4-1
97
71
1-0
7-1
97
91
1-0
9-1
98
0
80
.“J
ala
go
uri
” T
he
Sci
nd
ia S
tea
m N
avi
ga
tio
n C
om
pa
ny L
td.,
20
,85
42
5-1
0-1
97
70
1-1
2-1
97
92
7-0
3-1
98
1
81
.“
Ten
ne
ti”
Hin
du
sta
n S
hip
yard
Ltd
.,(L
an
din
g C
raft
)2
9-1
0-1
98
00
6-0
5-1
98
12
9-0
9-1
98
1
82
.“S
tate
of
Ha
rya
na
” T
he
Sh
ipp
ing
Co
rpo
rati
on
of
Ind
ia L
td.,
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26
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98
31
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4
84
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tate
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sh
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on
of
Ind
ia L
td.,
16
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93
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11
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s C
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td.,
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20
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ia L
td.,
26
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30
4-0
2-1
98
32
5-1
1-1
98
40
2-0
3-1
98
7
Ships Built
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S.N
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93
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f In
dia
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.,2
6,6
39
05
-03
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16
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27
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94
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.,2
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19
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24
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10
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of
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26
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72
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ian
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dia
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30
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02
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10
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S S
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PV
, In
dia
n N
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OP
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5-0
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98
81
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98
91
04
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-19
91
10
5.
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S S
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ian
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vy
OP
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98
92
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10
6.
“IN
S P
rata
p”
Th
e S
hip
pin
g C
orp
ora
tio
n o
f In
dia
Ltd
.,2
6,7
18
28
-08
-19
85
31
-07
-19
88
28
-06
-19
93
10
7.
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S S
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ta”
OP
V,
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ian
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98
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3
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8.
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HS
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ile
r In
dia
n N
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31
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42
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10
9.
“Ma
ha
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Sh
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Co
rpo
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on
of
Ind
ia L
td.,
42
,75
0 D
WT
(B
ulk
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18
-09
-19
86
23
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-19
92
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11
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“Sw
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ntr
a”
Th
e V
isa
kh
ap
atn
am
Po
rt T
rust
30
T.B
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ug
10
-09
-19
94
29
-03
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12
-09
-19
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1.
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Co
rpo
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on
of
Ind
ia L
td.,
42
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WT
(B
ulk
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20
-11
-19
94
22
-03
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15
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11
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ge
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l2
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60
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9
Ships Built
81Annual Report 2013-14
S.N
O.
Nam
e of
the
Shi
p /
Nam
e of
the
Ow
ner
Dead
Wei
ght
Date
of
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ery
11
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e V
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rt T
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50
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17
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-20
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11
4.
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rt T
rust
50
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05
-07
-19
98
22
-03
-19
99
27
-05
-20
00
11
5.
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of
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ia L
td.,
42
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0 D
WT
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ulk
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13
-04
-19
97
21
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15
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-20
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11
6.
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min
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ass
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ge
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30
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27
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16
-10
-20
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11
7.
M.V
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ATA
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inis
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tio
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rt T
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50
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17
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11
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18
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2.
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12
3.
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00
12
9-0
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4
12
4.
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10
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ass
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18
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12
5.
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17
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00
4
12
6.
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0 P
ass
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ge
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18
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23
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7.
FR
P L
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02
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12
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10
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ass
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ge
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08
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06
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.20
02
11
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.20
05
12
9.
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isa
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rt T
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50
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3 D
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00
30
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5
13
0.
1st .
Ba
rge
fo
r A
& N
Ad
min
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10
x 8
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Me
ters
02
.02
.20
05
13
1.
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arg
e f
or
A &
N A
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inis
tra
tio
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ete
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00
5
13
2.
3rd
Ba
rge
fo
r A
& N
Ad
min
istr
ati
on
10
x 8
x 2
Me
ters
02
.02
.20
05
13
3.
4th
Ba
rge
fo
r A
& N
Ad
min
istr
ati
on
10
x 8
x 2
Me
ters
08
.02
.20
05
13
4.
5th
Ba
rge
fo
r A
& N
Ad
min
istr
ati
on
10
x 8
x 2
Me
ters
11
.02
.20
05
Ships Built
82 Hindustan Shipyard Limited
S.N
O.
Nam
e of
the
Shi
p /
Nam
e of
the
Ow
ner
Dead
Wei
ght
Date
of
Layi
ngDa
te o
fDa
te o
f
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esKe
elLa
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ing/
Floa
ting
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ery
13
5.
6th
Ba
rge
fo
r A
& N
Ad
min
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ati
on
10
x 8
x 2
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ters
08
.02
.20
05
13
6.
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tra
it I
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& N
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on
10
0 P
ass
en
ge
r V
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el
08
.12
.19
99
11
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.20
03
20
.05
.20
05
13
7.
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si R
an
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r V
isa
kh
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rt T
rust
50
T B
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03
.11
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00
17
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.20
03
01
.09
.20
05
13
8.
OR
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ag
ar
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nju
sha
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ati
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Inst
itu
te o
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en
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vid
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de
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oo
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imit
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ML)
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ai
seri
es
Bu
lk c
arr
ier
29
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22
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14
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lk c
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23
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14
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Tra
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lk c
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ier
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.20
08
07
.05
.20
08
14
6.
M.V
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r U
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on
70
0 P
ass
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ge
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Ca
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l2
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00
8
14
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am
bo
oka
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r A
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min
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15
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ass
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ge
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el
08
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or
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15
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ass
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ge
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14
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06
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M.V
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l Su
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rt T
rust
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reco
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d p
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tro
l ve
sse
l1
8.1
0.2
00
31
5.1
0.2
00
82
7.0
4.2
00
9
Ships Built
83Annual Report 2013-14
S.N
O.
Nam
e of
the
Shi
p /
Nam
e of
the
Ow
ner
Dead
Wei
ght
Date
of
Layi
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ting
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ery
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Bu
lk c
arr
ier
18
.12
.07
14
.11
.20
08
10
.08
.20
09
15
1.
M.T
Isw
ari
, fo
r N
ew
Ma
ng
alo
re P
ort
Tru
st3
2-T
. B
olla
rd P
ull t
ug
20
-01
-07
05
.06
.20
08
17
.08
.20
09
15
2.
M.V
. G
oo
d P
rid
e f
or
GM
L, C
he
nn
ai
53
,00
0 D
WT
Dia
mo
nd
seri
es
Bu
lk c
arr
ier
09
.01
.20
08
23
.03
.20
09
12
.04
.20
10
15
3.
M.V
.Go
od
Pre
ced
en
t fo
r G
ML,
Ch
en
na
i5
3,0
00
DW
T D
iam
on
d
seri
es
Bu
lk c
arr
ier
21
.03
.20
09
29
.03
.20
10
05
.02
.20
11
15
4.
Mr.
A.W
. D
elim
a f
or
VP
T, V
isa
kh
ap
atn
am
50
-T B
olla
rd p
ull T
ug
21
.03
.20
09
14
-07
-20
10
30
-12
-20
11
15
5.
Ra
ni
Ab
ba
kka
fo
r In
dia
n C
oa
st G
ua
rdIn
sho
re P
atr
ol
Ve
sse
l2
5-0
6-2
00
72
8-0
5-2
00
90
5-0
1-2
01
2
15
6.
M.V
. G
oo
d T
rad
e f
or
GM
L, C
he
nn
ai
53
,00
0 D
WT
Dia
mo
nd
31
-03
-20
10
31
-03
-20
11
17
-02
-20
12
Se
rie
s B
ulk
Ca
rrie
r
15
7.
Co
l. H
. C
art
Wri
gh
t R
eid
fo
r5
0-T
Bo
lla
rd p
ull T
ug
21
.03
.20
09
04
-11
-20
10
10
-08
-20
12
Vis
akh
ap
atn
am
Po
rt T
rust
, V
isa
kh
ap
atn
am
15
8.
Ra
ni
Av
an
ti B
ai
for
Ind
ian
Co
ast
Gu
ard
Insh
ore
Pa
tro
l V
ess
el
25
-06
-20
07
28
-05
-20
09
08
-05
-20
13
15
9.
M.V
. G
oo
d D
ay
fo
r G
ML
53
00
0 D
WT
Dia
mo
nd
30
-12
-20
10
12
-06
-20
12
29
-07
-20
13
Se
rie
s B
ulk
Ca
rrie
r
16
0.
"DH
IRA
J" f
or
Ind
ian
Na
vy
50
T B
oll
ard
Pu
ll T
ug
27
-12
-20
10
03
-08
-20
13
24
-12
-20
13
16
1.
"SA
HA
S"
for
Ind
ian
Na
vy
50
T B
oll
ard
Pu
ll T
ug
05
-03
-20
11
03
-08
-20
13
24
-12
-20
13
16
2.
"HIM
MA
T"
for
Ind
ian
Na
vy
50
T B
oll
ard
Pu
ll T
ug
27
-12
-20
10
03
-08
-20
13
31
-03
-20
14
Ships Built