Professional Documents
Culture Documents
AUTHENTICATED
Contents
Board of Directors
....
01
Chairmans Address
....
02
Notice
....
05
Directors Report
....
07
....
18
....
28
Auditors Report
....
39
....
44
Balance Sheet
....
46
....
47
....
48
....
58
....
71
Social Overheads
....
72
....
74
Ships built
....
76
OUR VISION
To be a National Leader in
Ship & Submarine building and Repairs
OUR MISSION
BOARD OF DIRECTORS
(As on date of AGM)
RAdm N K Mishra
NM, IN (Retd.)
Chairman & Managing Director
VAdm A V Subhedar
AVSM, VSM
VAdm K R Nair
AVSM, VSM
Chief of Materiel, Indian Navy
VAdm A G Thapliyal
AVSM & Bar
DG, Indian Coast Guard
IFS (Retd.)
Independent Director
Dr V Bhujanga Rao
DS, CCR & D, DRDO
STATUTORY AUDITORS
M/s B V Rao & Co.
Chartered Accountants, Visakhapatnam
COST AUDITORS
CMA U Prakash
Cmde KS Subramanian
NM, IN (Retd.)
Director (Shipbuilding)
INTERNAL AUDITORS
M/s Ambica & Isha
BANKERS
Indian Bank
State Bank of India
UCO Bank
Syndicate Bank
Andhra Bank
Canara Bank
U74899AP1952GOI076711
Registered Office :
Gandhigram Post Office,
Gandhigram, Visakhapatnam - 530005
Chairman's Statement
Despite severe financial crisis, the yard has delivered five vessels during the year under review.
(b)
(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
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 companys 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.
Chairman's Statement
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
23 Sep 2014
(N K Mishra)
Rear Admiral , IN (Retd.)
Chairman & Managing Director
Notice
62nd
NOTICE OF
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
11th Jul 2014
(Inaitula Baig)
Company Secretary
Notice
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,
(InaitulaBaig)
Company Secretary
Date: 11 Jul 2014
Place: New Delhi
Directors Report
Directors Report
7.
Visit of VAdm B.K. Verma, AVSM, COS, ENC on 31st January 2014
The following are the major events during the year 2013-14 :
Sl
Events
Date
Description
Owner
(a)
Floating /
02 Aug 13
Indian Navy
Launching
02 Aug 13
Indian Navy
13 Jan 14
Indian Navy
08 May 13
ICG
29 Jul 13
M/s GML
24 Dec 13
Indian Navy
24 Dec 13
Indian Navy
31 Mar 14
Indian Navy
(b)
Delivery
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
Owner
No of
Vessels
Balance
Contract
Value(In Rs Cr)
(a)
11140
GML, Chennai
36.88
(b)
11156 58
12.15
(c)
11165 72
551.12
(d)
11173 74
54.37
(e)
11175 77
Indian Navy
110.24
(f)
11178 83
Indian Navy
122.13
(g)
11184
VC 11184
Indian Navy
672.02
24
1558.91
Total
8
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%.
Operating Results
12.
The summarised financial results of the Company for the year 2013-14 are as under: 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
(87.56)
73.86
30.33
(46.06)
(29.43)
Depreciation
5.59
0.40
1.54
0.00
7.53
2.70
5.80
0.02
0.73
9.25
(95.85)
67.66
28.77
(46.79)
(46.21)
Directors Report
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)
(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)
(ii)
Existing 25 Nos standalone AUTOCAD licenses increased to 35 nos networked AUTOCAD 2014
licences.
(d)
(e)
(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.
10
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)
(b)
(c)
(d)
(e)
(f)
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.
11
Directors Report
23. Fire Service Week was observed during 14 - 20 Apr 13 to create fire safety awareness. Lecture-cumDemonstration was organised by Fire Service Department. The function was well attended by all personnel of the
yard.
Information Technology
24.
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.
Plantation of Sapling by Sri Ashok K.K. Meena, JS (NS), MOD
Welfare Activities
27. Your Companys 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 Crche
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.
12
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.
Annual Report 2013-14
13
Directors Report
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
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.
Mega Medical Camps. On 20 Oct 13 & 30 Mar 14 two Mega Medical camps were organised for the
(c)
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 Playlet on World Environment Protection Day on 26th November 2013
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.
National Energy Conservation Day. On 14 Dec 2013, as a part of Energy Conservation day, the yard
(f)
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.
15
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.
Free Internship Training to Students. Free internship training was imparted to 52 students of
(j)
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.
Augmentation of Libraries of Colleges run by
(k)
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
Shri Samirendra Chatterjee, Chairman of the CSR Committee
Programs/ Workshops/ Seminars for Executives, Staff & handed over books to the Principals of Junior and Degree Colleges
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.
16
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 Companys
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
New Delhi
11 July 2014
Annual Report 2013-14
(NK Mishra)
Rear Admiral IN (Retd.)
Chairman & Managing Director
17
Corporate Governance
Annexure 1
The details of the members of the Board during the Financial Year ended on 31 Mar 14 are as under:
Name of the Directors
Period
Category of Directorship
No. of Other
Directorship
RAdm N K Mishra, NM
01 Apr 13 to
31 Mar 14
Nil
01 Apr 13 to
10 Oct 13
Nil
Cmde K S Subramanian
01 Apr 13 to
31 Mar 14
Nil
Cmde K L N Prasad
01 Apr 13 to
31 Mar 14
Nil
01 Apr 13 to
31 Mar 14
Nil
01 Apr 13 to
31 Mar 14
01 Apr 13 to
31 Mar 14
Dr Devi Singh
01 Apr 13 to
31 Mar 14
01 Apr 13 to
31 Mar 14
05 Apr 13 to
31 Mar 14
18
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)/2007D(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.
Category of Directorship
No. of Other
Directorship
Nil
Nil
Nil
Nil
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.
Annual Report 2013-14
19
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)
(b)
(c)
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)
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
tenure of Directors
Attended
Attendance
at last AGM
Yes
Yes
Yes
Yes
Yes
Dr Devi Singh
Yes
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.
20
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)
Chairman
(b)
Member
(c)
Member
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
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)
Chairman
21
Corporate Governance
(b)
Dr Devi Singh
Part time Non official Director
Member
(c)
Member
(d)
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)
Chairman
(b)
Member
(c)
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:
29.
(a)
Chairman
(b)
Member
(c)
Member
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.
22
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)
Chairman
(b)
Member
(c)
Member
(d)
Member
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
Shri Skand R Tayal, IFS (Retd.)
Shri Rakesh Mahajan
Cmde K S Subramanian, NM (Retd.)
Cmde K L N Prasad, (Retd.)
Cmde Ashok Bhal, VSM (Retd)
No of meeting
Held during the tenure
3
2
3
3
3
Attended
3
2
3
2
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:
34.
(a)
Chairman
(b)
Cmde K S Subramanian, NM
Director (Shipbuilding)
Member
(c)
Cmde K L N Prasad
Director (Corporate Planning & Personnel)
Member
35. During the Financial year 2013-14, one meeting of the HR Committee was held on 25 Jan 2014 where all
members were present.
Annual Report 2013-14
23
Corporate Governance
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)
Chairman
(b)
Member
(c)
Cmde K L N Prasad
Director (Corporate Planning & Personnel)
Member
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
38.
(a)
Chairman
(b)
Cmde K L N Prasad
Director (Corporate Planning & Personnel)
Member
(c)
Member
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
24
Corporate Governance
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:
45.
Year
Date
Time
Location
2010-11
16.09.2011
11.00 A.M
2011-12
21.09.2012
11.00 A.M
2012-13
30.09.2013
10.00 A.M
Extraordinary
General Meeting
27.05.2014
11.00 A.M
25
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.
26
(N K Mishra)
Rear Admiral, IN (Retd.)
Chairman & Managing Director
Corporate Governance
27
Annexure 2
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
Navys requirement for Strategic Vessels to meet Defence needs.
Need for large special ships to collect Intelligence information
Medium Repair/ Mid Life update of Submarines
28
(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.
Annual Report 2013-14
29
30
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
(29.43)
(29.52)
(46.21)
(55.17)
(46.21)
(55.17)
(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.
****
Annual Report 2013-14
31
32
256
1498
263
57
GROUP B
GROUP C
GROUP D Safaiwala
GROUP C
GROUP D Safaiwala
33
29
644
12
GROUP C
GROUP D (Safaiwala)
GROUP B
GROUP A
147
GROUP B
GROUP A
TEMPORARY:
126
Total
Strength
GROUP A
PERMANENT:
148
31
57
48
207
51
31
Scheduled
Castes
28
11
59
28
13
Scheduled
Tribes
10
676
25
31
83
51
238
1234
234
113
Total
Strength
157
28
51
42
176
47
28
Scheduled
Castes
26
60
24
13
Scheduled
Tribes
Annexure - 3
Annexure - 3
2
-
GROUP C
GROUP D Safaiwala
GROUP C
GROUP B
GROUP D Safaiwala
GROUP A
268
18
GROUP B
Total
Number of
Posts filled
during the
year
GROUP A
PERMANENT:
Classification of Posts/Services
43
Posts
Reserved
55
Posts
Filled
Scheduled Castes
18
Posts
Reserved
16
Posts
Filled
Scheduled Tribes
Reason for
shortfall and
steps taken
to improve
the Position
PARTICULARS OF RECRUITMENT MADE DURING THE CALENDAR YEAR 2013 AND THE NUMBER FILLED BY
MEMBERS OF SCs/STs
Annexure - 4
Annexure - 4
33
34
234
1234
238
51
81
GROUP B
GROUP C
GROUP D Safaiwala
25
676
GROUP C
31
GROUP B
GROUP D Safaiwala
GROUP A
113
Total Strength
GROUP A
PERMANENT:
Classification of Posts/Services
20
14
Number
28.00
64.51
1.26
0.72
0.42
12.38
Ex- servicemen
29
18
Number
90.00
0.73
12.00
6.45
15.68
3.78
2.35
7.69
7.96
Women employees
Annexure - 5
Annexure - 5
Annexure - 6
Annexure - 6
1.
2.
3.
4.
5.
6.
7.
8.
b)
NIL
c)
3,52,600 Units
d)
Current Year
Previous Year
74,97,500 Units
92,39,000 Units
Total Amount
` 6,92,40,500
` 5,90,72,714
` 9.2
` 6.4
Nil
Nil
Electricity
a) Purchased units
b)
Own generation
2.
Coal
Nil
Nil
3.
Furnace Oil
Nil
Nil
4.
N.A.
N.A.
35
Annexure - 6
FORM -B
A. RESEARCH & DEVELOPMENT
1.
2.
3.
4.
Expenditure on R&D
B.
(a)
Capital;
.........
(b)
Recurring (Revenue)
.........
C.
a)
b)
Nil
Material procurement
` 124.44 Crores
b)
Others
Total
` 129.17 Crores
Earned
36
4.73 Crores
1.47 Crores
Annexure - 7
Annexure -7
Company's Reply
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 nonutilization 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-inAid. 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
37
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.
Visakhapatnam
08 Sep 2014
38
(N.K. Mishra)
Rear Admiral (Retd.)
Chairman and Managing Director
Auditor's Report
39
Auditor's Report
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.
As required by the Companies (Auditors 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.
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.
40
Auditor's Report
2.
3.
4.
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.
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.
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.
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.
7.
41
Auditor's Report
8.
9.
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
the
Statute
Nature
of
dues
From
where
pending
Subject Matter
GVMC
Property
Tax
13.39
1984-85 to
1994-95
High Court
109.78
May, 2002 to
Feb, 2005
High Court
83.29
April 1,1998 to
Sep 30, 2000
High Court
ESI Act
ESI dues
180.24
April 1985 to
March 1993
High Court
Finance Service
Act, 1994
Tax
2081.31
2005 to 2007
CESTAT
Finance Service
Act, 1994
Tax
367.70
2001 to 2012
CESTAT
APVAT Act
VAT
2552
2006 to 2011
STAT, ADC
RR Act,
1864
NALA Tax
4.54
2000-01
AP State
Revenue
Dept.
TOTAL
10.
5392.25
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.
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.
14.
15.
16.
17.
18.
19.
Issue of Debentures
According to the information and as per records, the Company has not issued debentures during the year.
20.
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.
43
C & AG Comments
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
44
Accounts
ACCOUNTS
45
Balance Sheet
II
Particulars
Note No.
1
2
3
30,199.22
(1,07,116.45)
37,221.25
1,571.78
11,974.48
37,221.25
1,190.75
12,429.63
9,608.18
20,242.42
85,729.31
15,702.31
1,00,511.53
10,360.33
19,276.92
89,060.38
19,096.93
1,11,718.96
7,384.13
3.61
697.37
418.34
7,413.14
7,596.31
1,155.74
380.57
8,221.95
13,608.59
17,888.34
40,406.94
2,774.39
9,916.68
13,569.38
23,015.32
47,184.48
4,668.58
5,926.63
1,00,511.53
1,11,718.96
17
46
30,199.22
(1,11,737.42)
Sd/INAITULA BAIG
Company Secretary
Place : New Delhi
Date : 11 Jul 2014
As at
31-March-2013
TOTAL
As at
31-March-2014
Profit and Loss Statement for the year ended 31 March, 2014
` in lakhs
Sl.No.
III
Particulars
Note No.
45,339.99
48,384.17
(2,295.14)
(2,080.68)
Net turnover
43,044.85
46,303.49
6,566.65
7,866.33
49,611.50
54,169.82
Other Income
Total Income
EXPENSES
Materials consumed
18,605.01
23,838.90
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
13
925.52
1,777.08
Depreciation
752.52
788.77
14
1,913.06
4,067.13
15
812.82
841.05
(289.85)
(266.10)
Total expenditure
54,203.73
59,687.21
(4,592.23)
(5,517.39)
(28.74)
(4,620.97)
(5,517.39)
(4,620.97)
(5,517.39)
(4,620.97)
(5,517.39)
(153)
(183)
Transfers
Year ended
31-March-2013
INCOME
Turnover (Revenue from Operations)
IV
Year ended
31-March-2014
VI
VII
VIII
Extraordinary items
IX
Taxes
XI
XII
16
47
Notes
As at
31-March-2014
As at
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
30,199.22
30,199.22
Total - Note : 1
30,199.22
30,199.22
As at
31-March-2014
As at
31-March-2013
Number of shares
Number of shares
30,19,922
30,19,922
As at
31-March-2014
As at
31-March-2013
9.50
9.50
Deficit
Opening Balance
Add: Net Profit / (Loss) for the current period
Closing Balance
Total - Note : 2
48
(1,07,125.95)
(1,01,608.56)
(4,620.97)
(5,517.39)
(1,11,746.92)
(1,07,125.95)
(1,11,737.42)
(1,07,116.45)
Notes
` in lakhs
Note - 3
As at
31-March-2014
As at
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
50.95
10.71
721.12
380.33
163.72
163.72
635.99
635.99
1,571.78
1,190.75
8,175.03
9,175.55
3,799.45
3,254.08
11,974.48
12,429.63
50,767.51
50,841.63
Total - Note : 3
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.
Provision for gratuity excludes deposits amounting Rs. 1106.65 lakhs held with gratuity trust.
49
Notes
` in lakhs
Note - 4
As at
31-March-2014
As at
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
20,242.42
19,276.92
27,599.46
34,400.51
48,855.34
46,707.99
9,022.37
7,671.43
252.14
280.45
85,729.31
89,060.38
3,009.49
2,961.00
683.05
822.50
4,601.33
7,720.91
159.75
135.76
6,488.69
6,555.29
760.00
901.47
15,702.31
19,096.93
1,31,282.22
1,37,794.56
Trade payables
Other Current Liabilities
Total - Note : 4
Sub-notes:
1
Cash credit facility from Indian Bank is secured by hypothecation of Fixed and Current Assets of the company.
Includes interest Rs.4427 lakhs earned on RRMI funds. Assets procured under this package worth Rs. 1307 lakhs is
deducted from the advance.
Out of the said amount Rs. 5314 lakhs payable towards wage revision arrears.
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.
Provision for future losses computed as per AS-7 Construction Contracts issued by ICAI in respect of Ships under
construction.
50
Notes
` in lakhs
II
ASSETS
Note - 5
1)
As at
31-March-2014
As at
31-March-2013
NON-CURRENT ASSETS
Fixed Assets :
Gross Block (Tangible)
24,376.70
23,842.57
Depreciation
16,992.57
16,246.26
7,384.13
7,596.31
146.38
139.82
Depreciation
142.77
139.82
3.61
697.37
1,155.74
8,085.11
8,752.05
3,678.83
3,409.96
(3,009.44)
(2,740.57)
314.83
418.34
380.57
1,831.13
2,329.45
99.08
94.74
4,510.60
4,510.60
156.02
156.02
7,015.17
7,786.21
146.92
146.92
15,916.59
17,354.57
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.
Annual Report 2013-14
51
52
1284.02
23.54
588.52
167.17
3132.33
271.95
5.35
1585.80
21.44
8781.99
346.91
397.49
282.71
82.69
34.33
45.89
501.68
0.00
1307.56
139.82
139.82
6.56
0.00
24523.08 16386.07
23982.39 15568.77
627.81
169.56
4219.90
317.43
Note : 1. Depreciation for the year includes prior period amount of Rs. 1.64 lakhs
0.00
5.08
0.00
6.56
545.76
875.35
501.50
627.81
169.56
3718.40
1.28
139.82
0.00
23982.39
23107.04
5.30
312.13
11.59
5.41
2775.19
28.02
13773.74
563.47
754.25
342.09
89.48
36.07
61.87
610.68
3.80
5.41
2758.18
28.02
13762.16
563.47
754.25
342.09
89.48
36.07
61.87
611.96
20.81
1.72
1
Tangible Assets
Land
Buildings:
a) On freehold land
b) On leasehold land
Railway sidings
Plant & Machinery
Slipways & Fitout warf
Drydock
Wet basin
Furniture
Boats & launches
Motor vehicles
Roads & Compound walls
Housing Estate, Hospital & Other equpt.
Electrification of Buildings
Elec. Installations
Berth for well platforms
Building dock
Intangible Assets
Tribon Software for shipbuilding
Pay roll software
Total
Previous year
RRMI Assets
(Funded by MoD, GoI)
Gross Block
Additions
Sales /AdAs on
Up to
during
justments 31.03.2014 31.03.2013
the year
during
the year
3
4
5
6
FIXED ASSETS
1.72
As on
31.03.2013
Particulars
Note - 5 (a)
0.00
2.95
754.16
817.30
3.34
0.00
133.81
5.26
0.01
48.40
5.26
518.51
6.87
17.64
5.58
1.47
0.00
2.15
2.91
0.00
4.89
0.00
1.28
3.61
139.82
2.95
17135.34
16386.07
591.86
167.17
3266.14
277.21
5.36
1630.59
26.70
9300.50
353.78
415.13
288.29
84.16
34.33
48.04
503.31
0.00
Depreciation
For the
On sales /
Up to
year
Adjustments 31.03.2014
for the year
1.72
0.00
3.61
7387.74
7596.32
35.95
2.39
953.76
40.22
0.05
1144.60
1.32
4473.25
209.69
339.12
53.80
5.32
1.74
13.83
107.37
10
0.00
0.00
7596.31
7538.26
39.29
2.39
586.07
40.18
0.06
1172.38
6.58
4980.15
216.56
356.76
59.38
6.79
1.74
15.98
110.28
1.72
11
Net block
As at
As at
31.03.2014 31.03.2013
` in lakhs
Notes
Notes
` in lakhs
Note - 6
As at
31-March-2014
CURRENT ASSETS
Inventories (Refer Sub-note: 1)
Steel
Stores & Spares , equipment and other Materials
Timber
Materials-in-Transit and under inspection
Steel Cut Pieces on shop floor and Scrap (Refer Sub-note: 2)
Less : Provision for : Obsolescence of materials
Difference between Bin cards & PSL balances
Trade receivables
Unsecured
Debts outstanding for more than 6 months:
Considered good
Considered doubtful
Other debts, considered good
Less: Provision for bad debts
Cash and Bank balances
Cash and Cash Equivalents
Cash in Hand
Balances with scheduled banks in:
Term and other Deposit accounts
Current accounts
Short term loans and Advances
Short term loan and advances
Employees
Suppliers of materials & services
Others
Prepaid Expenses
Less : Provision for Doubtful Advances
Other Current Assets
Interest Accrued on term deposits
Accrued Income (Refer Sub-note: 3)
Total - Note : 6
As at
31-March-2013
2,450.73
10,462.07
31.05
406.68
612.33
13,962.86
130.46
223.81
13,608.59
1,853.81
10,977.35
27.01
779.31
286.23
13,923.71
130.52
223.81
13,569.38
10,435.24
10,435.24
7,453.10
17,888.34
17,888.34
5,181.12
5,181.12
17,834.20
23,015.32
23,015.32
3.15
3.95
40,139.81
263.98
40,406.94
46,987.33
193.20
47,184.48
85.59
1,918.55
878.42
83.32
2,965.88
191.49
2,774.39
78.98
3,718.76
884.36
77.49
4,759.59
91.01
4,668.58
1,261.95
8,654.73
9,916.68
1,042.10
4,884.53
5,926.63
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).
Annual Report 2013-14
53
Notes
NOTES FORMING PART OF THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 MARCH, 2014
` in lakhs
Note - 7
Year ended
31- March-2014
Year ended
31- March-2013
23,354.79
558.54
17,311.20
2,155.09
5,808.98
203.30
261.45
542.39
14,556.26
13,861.51
307.43
196.94
931.54
13,478.52
54.28
141.94
45,339.99
48,384.17
Income from ship building is recognised as per AS-7 Construction Contracts issued by ICAI.
Company is eligible for subsidy @30% on 53K Bulkers under construction for GML.
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
31- March-2014
Year ended
31- March-2013
141.19
179.35
112.69
63.37
825.65
1.41
5,242.99
4,606.77
(971.98)
331.42
90.66
230.17
186.45
2,980.09
412.75
Total - Note : 8
6,566.65
7,866.33
Sub-notes:
1
54
Notes
` in lakhs
Note - 9
Year ended
31- March-2014
Year ended
31- March-2013
Materials Consumed
Steel
Stores & Spares
Timber
Direct Materials, Machinery & Equipment used in
Ship Construction
Shiprepair
Submarine Retrofit
11,157.38
622.71
2,140.10
13,335.64
3,101.02
5,734.65
18,293.70
311.31
23,721.42
117.48
Total - Note : 9
18,605.01
23,838.90
Note - 10
2,153.41
2,205.85
14.25
Year ended
31- March-2014
537.82
1,009.14
3.15
Year ended
31- March-2013
1,280.51
Ship Repairs
584.43
2,001.19
Submarine Retrofit
246.97
652.35
1,108.34
722.83
13.47
718.52
5,180.03
2,095.86
253.20
220.05
9,954.61
7,691.31
Ship Construction
Sub-notes: 1. Other Direct Expenses in Ship Construction includes Rs.390 lakhs provision for Guarantee Repairs.
55
Notes
` in lakhs
Note - 11
Year ended
31- March-2014
Year ended
31- March-2013
Employee Benefits
Salaries, Wages, Allowances etc.,
12,890.99
13,446.47
1,295.08
1,318.33
Gratuity
2,406.00
2,294.60
Leave salary
1,462.36
689.61
49.87
74.18
685.29
483.47
18,789.59
18,306.66
Other expenses
Power and Fuel (net of recoveries)
Water Charges (net of recoveries)
Rates and taxes (including customs duty on scrap sales)
Fire and Other Insurance
Rent (Sub-note 1)
Repairs and Maintenance to :
Plant and Machinery
Buildings
Other Assets
Printing and Stationery
Local conveyance charges
Travelling Expenses
Communication expenses
Advertisement and Publicity
Salaries and other Expenses of Customs Staff
Demurrage Charges
Directors Fees and Expenses:
Directors Fees
Travelling Expenses
Auditors Remuneration :
Statutory Audit
Expenses
Foreign exchange variation
Miscellaneous Expenses
Total - Note : 12
Year ended
31- March-2014
Year ended
31- March-2013
785.87
122.10
48.61
111.89
168.75
651.78
96.89
100.19
251.61
153.22
597.11
250.56
48.00
7.14
229.27
60.16
4.07
26.91
36.60
14.90
506.85
138.54
55.82
8.57
181.85
47.85
3.91
13.47
52.38
13.93
1.67
23.18
0.45
38.17
1.80
0.34
96.95
104.57
1.69
0.35
324.89
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).
56
Notes
` in lakhs
Note - 13
Year ended
31- March-2014
Year ended
31- March-2013
782.71
67.16
75.65
1,285.15
367.35
124.58
Total - Note : 13
925.52
1,777.08
Note - 14
Provisions and Losses
Provisions made:
Obsolescence of Materials
Reduction in SR Bills
Liquidated Damages
Contingencies
Doubtful Debts /Advances
Losses :
Reduction in Shipbuilding inventory
Total - Note : 14
Note - 15
Prior Period Adjustments
A
Income
SR Income
EKM Insurance refund
Miscellaneous
B
Year ended
31- March-2014
Year ended
31- March-2013
1.64
398.02
411.03
159.75
100.48
78.83
660.00
2,165.05
38.79
365.41
842.14
759.05
1,913.06
4,067.13
Year ended
31- March-2014
Year ended
31- March-2013
31.46
24.65
-
2.86
56.11
2.86
Expenditure
SC Direct Expenses
SC Insurance expenses
Berth hire charges
Materials, Freight, C & F charges
Taxes & Duties
Rent
Depreciation
EKM FE Variation
Miscellaneous
26.98
53.25
80.00
1.64
576.81
130.25
6.54
17.76
762.18
1.72
0.07
28.52
27.12
868.93
812.82
843.91
841.05
Note - 16
Year ended
31- March-2014
Year ended
31- March-2013
28.74
Total - Note : 16
28.74
57
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.
4.
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)
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.
58
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.
c.
Revenue received.
Hindustan Shipyard Limited
Notes
5.
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.
GOVERNMENT GRANTS:
i)
6.
ii)
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.
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 managements 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.
59
Notes
8.
9.
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)
EMPLOYEE BENEFITS:
(i)
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)
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)
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.
11.
12.
13.
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.
60
Notes
14.
15.
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.
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.
61
Notes
B. NOTES ON ACCOUNTS
(` in lakhs)
2013-14
2012-13
5248.56
3680.31
1.
Contingent liabilities
1.1
1.2
17111.23
18804.67
1.3
1.4
1.4.1
13.39
13.39
109.78
109.78
(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)
83.29
78.58
(b) ESI dues in respect of temporary workmen for the period from April,
1998 to Oct., 1999, contractors contribution for the period from Apr.,
1985 to March, 1993.
180.24
180.24
2081.31
2081.31
367.70
367.70
1.4.2
1.4.3
1.4.4
1.4.5
1.4.6
2552.00
2644.78
1.4.7
1.4.8
Non Agricultural Land Assessment tax demands for the year 2000-01
1875.81
4.54
898.61
4.54
1.4.9
1397.86
8665.92
1379.31
7758.24
8638.00
8638.00
13441.80
11878.52
Total [1.4]
1.5
Claims against the company, which are under arbitration and not
provided for:
1.5.1
1.5.2
Claims of Essar Oil Limited (EOL) towards OPF works (net of provision
made of `5139.00 lakhs).
62
Notes
1.5.3
2013-14
2012-13
19932.74
13288.00
42012.57
33804.52
In respect of items mentioned under 1.4 and 1.5 above, the Company has been advised by the Counsel that
said demands and claims are not sustainable in law.
2.
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
Employers 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 obligation
is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of
service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build
up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.
I.
Gratuity
(Funded)
Earned Leave
Encashment
(Unfunded)
Sick Leave
(Unfunded)
13146.87
3321.52
755.06
13153.12
3431.04
780.70
905.96
220.67
1016.52
257.68
210.22
226.61
28.88
281.49
384.61
(25.64)
(3358.04)
(1056.44)
(2388.00)
(799.12)
1386.16
986.20
1083.74
47.31
12291.17
3698.56
783.94
13146.87
3321.52
755.06
63
Notes
II.
2013-14
2012-13
1010.31
923.17
94.97
83.08
Contribution
3358.04
2388.00
Benefits paid
(3358.04)
(2388.00)
1.37
4.06
1106.65
1010.31
III.
IV.
Leave
Encashment
(Unfunded)
Sick Leave
(Unfunded)
1106.65
1010.31
12291.17
3698.56
783.94
13146.86
3321.52
755.06
11184.52
3698.56
783.94
12136.55
3321.52
755.06
Expenses recognized during the year (in the statement of Profit & Loss Account)
(` in lakhs)
Description
64
Gratuity
(Funded)
Leave
Encashment
(unfunded)
Sick
Leave
(Unfunded)
210.22
226.61
281.49
384.61
(25.64)
905.96
220.67
1016.52
257.67
(94.97)
(83.08)
1384.80
986.20
1079.68
47.31
2406.01
1433.48
28.88
2294.61
689.59
(25.64)
Notes
V.
Investment Details
(Percentage invested)
Description
Gratuity as on
31.03.14
Gratuity as on
31.03.13
12.00
13.00
Others (T.D.R.s)
88.00
87.00
Total :
100.00
100.00
GoI Securities
VI.
31.03.2014
31.03.2013
31.03.2014
31.03.2013
Discount Rate
9.00
7.90
9.00
7.90
7.00
3.00
7.00
3.00
Attrition rate
1.00
1.00
1.00
1.00
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 enterprises 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
1162.20
1169.29
The Companys 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--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 Companys Actuary has expressed his inability to reliably measure the same.
Annual Report 2013-14
65
Notes
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
building
Ship
repairs
Retrofit
Un-allocated
Segment Income:
Sales
Taxes collected
Other operating income (scrap sales)
22,394.61
1,518.72
-
6,786.75
29.37
54.28
14,556.26
-
43,737.62
1,548.09
54.28
Other Income
23,913.33
1,120.58
6,870.40
4,840.11
14,556.26
220.64
385.32
45,339.99
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)
Direct Expenses
Direct Labour
Service Tax, Sales Tax & Excise Duty
15,385.35
3,971.94
3,581.88
1,685.73
694.57
615.84
320.20
547.14
2,273.68
5,366.83
980.86
62.27
18,353.60
9,954.61
4,882.94
2,295.14
24,624.90
2,177.75
8,683.64
35,486.29
409.01
8,375.36
1,618.87
-
9,532.75
2,308.23
458.09
-
6,093.26
2,664.52
552.16
-
385.32
4,938.59
96.76
28.74
16,420.35
18,286.70
2,725.88
28.74
(9,585.22)
6,766.44
2,876.58
(4,678.77)
(4,620.97)
(4,678.77)
(4,620.97)
Segment Result
Overheads
Provisions and Adjustments
Extraordinary & Exceptional items
Net Segment Result
Taxes
Total Result
(9,585.22)
6,766.44
Other information
Segment Assets
Segment Liabilities
Capital Expenditure
Depreciation
Non-cash expenditure other than Dep.
22,003.09
52,889.06
558.91
-
16,573.06
24,807.58
39.70
-
66
2,876.58
Total
8,863.36
53,072.02 1,00,511.53
22,562.00 1,11,999.81 2,12,258.45
545.76
545.76
153.91
752.52
-
Notes
2012-13
89.69
(4620.97)
3019922
87.27
(5517.39)
3019922
(153)
(182)
--
--
193350
234339
5.93
--
9.
2013-14
Description
Unit
2013-14
Qty
2012-13
Value
` in lakhs
Qty
Value
` 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
Nos.
16222
276.95
8024
83.28
Pipe Fittings
Ship Machinery and Equipt.
Ship Repair Materials
Retrofit Materials
Others
Total
Annual Report 2013-14
11855.57
13335.64
657.20
3101.02
2140.05
5734.65
956.42
622.44
18293.70
23721.42
67
Notes
ii)
2012-13
12310.13
20776.78
5983.57
2944.64
iii)
67%
88%
iv)
33%
12%
10.
1.1
2013-14
2012-13
473.05
79.64
12444.34
10350.44
147.03
50.69
iii) Others
1.2
11. As per AS29 relating to Provisions the movement of provisions in the books of account is as follows:
` In lakhs
Nature of provision
68
Opening
Balance
12137
(12230)
4077
(4212)
7721
(5556)
136
(97)
6555
(8382)
901
(1180)
2741
(1722)
91
(98)
Provision
Utilisation
made during / Reversal
the year
during the
year
2406
(2295)
1463
(690)
411
(2165)
160
(39)
410
(20)
398
(1025)
100
-
3358
(2388)
1057
(825)
3531
136
66
(1827)
551
(299)
130
(6)
(7)
Closing
Balance
11185
(12137)
4483
(4077)
4601
(7721)
160
(136)
6489
(6555)
760
(901)
3009
(2741)
191
(91)
Notes
12.
Disclosure of information in respect of Ships under construction as per Accounting Standard-7 Construction
Contracts
In lakhs
Particulars / Nature of Vessel
IPVs
(ICG)
53K
BULKERS
Vessel No:
11156-58
11140
Owner
ICG
GEML
10897
12829
18242
IPVs
(ICG)
11184
KPT
NAVY
NAVY
5311
3227
286
20195
5311
3483
311
(7345)
(7366)
(256)
(25)
(762)
(2116)
(2790)
(431)
(790)
(441)
(8107)
(9482)
(2790)
(687)
(815)
(441)
Advances Received
7859
12589
14503
9609
2736
1159
1252
1977
5803
61380
49892
5866
10089
10790
Retention Amount
201
Progressive Billing
8060
12589
14503
9609
2736
1159
1252
3038
240
491
10
9192
9609
873
1252
13.
Details of Remuneration to Chairman & Managing Director and other whole-time Directors:
(
in lakhs)
S.No
Particulars
i.
ii.
Shri. Rakesh Mahajan, Director (Finance & Commercial) (up to 10 Oct 2013)
iii.
18.15
iv.
19.66
v.
19.01
Total
89.69
2013-14
22.97
9.90
69
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
18
70
Year ended
31-March-2014
Year ended
31-March-2013
(3,876.36)
(4,676.34)
754.15
925.52
96.95
(141.19)
(1.41)
817.29
1,777.08
(3,634.79)
-
(2,242.34)
28.74
812.82
(5,716.76)
841.05
(3,083.90)
(6,557.81)
(39.21)
3,802.16
(5,834.32)
(5,155.27)
11,749.74
(4,984.60)
(6,130.35)
(5,923.02)
(545.76)
458.36
1.60
141.19
55.39
(875.35)
287.70
3,634.79
3,047.14
(752.15)
(925.52)
(1,677.67)
(121.98)
(1,777.08)
(1,899.06)
(6,777.55)
(4,774.94)
47,184.49
51,959.43
40,406.94
47,184.49
71
Social Overheads
SCHEDULE OF NET EXPENDITURE ON TOWNSHIP, RESIDENTIAL QUARTERS AND OTHER SOCIAL OVERHEADS
FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2014
(` in lakhs)
Description
Details
EXPENDITURE ON TOWNSHIP
AND RESIDENTIAL QUARTERS
Administration & Maintenance:
Salaries, Wages & Other Benefits
Housing Estate Site Rent
Property Tax on Residential Buildings
Electricity and Water Charges
Repairs and Maintenance
Colony Security
Miscellaneous Expenditure
Depreciation
Less: Income-Rent
Electricity and Water Charges
Expenditure on Social Overheads:
Schools and Educational Facilities
Less: Educational Grant
On Medical facilities
On Subsidised Canteen
On Subsidised lunch
On Subsidised transport :
Boats and launches
On Social & Cultural Activities
370.89
16.07
9.95
223.81
125.51
49.89
6.59
179.35
76.70
28.45
(26.16)
177.57
257.04
54.19
2013-14
Details
Total
Details
367.95
16.03
1.57
147.80
71.64
69.40
7.63
802.71
9.66
812.37
256.05
556.32
90.66
81.16
43.68
(39.07)
2.29
647.85
177.29
232.31
434.61
54.19
0.53
8.67
1.37
10.03
Total
682.02
9.92
691.94
171.82
520.12
4.61
458.78
409.60
57.49
0.53
1139.47
1695.79
2012-13
Details
931.01
1451.13
13.11
0.49
13.60
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 been
finalised out of Equity Share Capital except for an amount of Rs.0.45 lakhs out of grant of Andhra Pradesh in respect of
Gandhigram High School.
2.
The figures of Township Expenditure and Income have been collected only to the extent practicable from the accounts
of the company. The expenditure has been in the individual primary heads in the Profit and Loss Account.
3.
3.45
Hospital Equipment
562.12
Previous Year
562.12
Total
21.24
18.41
Electrical Installations
Motor Vehicles
26.31
490.99
1.72
As on
31.03.2013
Buildings
Land
PARTICULARS
403.21
9.92
9.66
0.00
0.00
0.01
0.29
9.35
0.00
For the
Year
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
On sales/
Adjustment
for the year
148.99
139.33
1.41
0.20
0.95
0.08
134.98
1.72
158.91
148.99
1.41
0.20
0.95
0.38
144.33
1.72
As on
As on
31.03.2014 31.03.2013
413.13
422.79
19.83
3.25
17.46
26.23
356.01
0.00
Upto
31.03.2014
INAITULA BAIG
Company Secretary
562.12
413.13
19.83
3.25
17.46
25.93
346.66
0.00
Upto
31.03.2013
NET BLOCK
0.00
0.00
562.12
21.24
3.45
18.41
26.31
490.99
1.72
As on
31.03.2014
DEPRECIATION
(` in lakhs)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Sales/
Adjustment
during the
year
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Additions
during the
year
GROSS BLOCK
Social Overheads
73
74
6.83
113.66
495.37
24.32
658.83
39.31
0.00
0.52
2.78
0.00
6.44
200.33
146.10
20.90
374.52
41.94
0.00
0.20
2.45
0.00
155.38
51.49
184.19
135.36
89.80
658.83
(1012.75)
981.69
6.08
43.63
981.44
6.08
39.67
92.36
140.65
27.52
66.82
2.58
374.52
(1026.44)
144.31
(1157.06)
2005-06
136.81
(1163.25)
2004-05
BALANCE SHEET:
EQUITY & LIABILITIES
Shareholders funds
Share Capital
Reserves and Surplus
Non-current Liabilities :
Long term borrowings
Other long trm liabilities
Long term provisions
Current Liabilities :
Short term barrowings
Trade payables
Other current l iabilities
Short term provisions
Total
ASSETS
Non-current assets:
Fixed assets - Tangible
- Intangible
- Capital work in progress
Long term loans and advances
Other non-current assets
Current Assets :
Inventories
Trade receivables
Cash & cash equivalents
Short term loans and advances
Other current assets
Total
Net Worth
132.06
140.55
281.70
164.67
81.91
965.75
(706.82)
44.53
0.00
4.01
3.10
113.22
70.47
128.94
686.61
63.61
965.75
610.69
6.08
106.17
149.31
(856.13)
2006-07
253.55
148.05
211.84
126.72
71.70
981.57
(566.31)
53.40
0.87
6.23
3.54
105.67
89.78
157.40
617.84
37.76
981.57
524.72
6.36
114.02
281.01
(847.32)
2007-08
372.15
117.23
115.47
118.83
33.08
941.98
(685.34)
63.71
0.17
5.16
3.08
113.10
68.24
134.87
692.06
37.03
941.98
559.15
6.36
129.61
301.99
(987.33)
2008-09
478.90
110.07
60.31
117.64
63.54
1038.99
(683.01)
68.77
0.00
12.47
3.30
123.99
96.40
219.03
677.78
32.72
1038.99
593.83
6.36
95.88
301.99
(985.00)
2009-10
331.65
139.60
305.86
147.28
110.50
1234.44
(628.02)
76.84
0.00
12.4
3.17
107.14
93.20
169.06
679.71
123.21
1234.43
627.67
11.99
157.61
301.99
(930.01)
2010-11
253.19
128.78
519.59
76.05
99.61
1279.71
(714.00)
75.38
0.00
14.44
2.95
109.72
104.82
166.85
978.62
182.29
1279.71
372.21
9.83
179.09
301.99
(1015.99)
2011-12
135.69
230.16
471.84
46.68
59.27
1117.19
(769.17)
75.96
0.00
11.56
3.81
82.22
103.60
192.77
890.60
190.97
1117.19
372.21
11.91
124.30
301.99
(1071.16)
2012-13
136.09
178.88
404.07
27.75
99.17
1005.12
(815.38)
73.84
0.04
6.97
4.18
74.13
96.08
202.43
857.29
157.02
1005.12
372.21
15.72
119.75
301.99
(1117.37)
2013-14
(` in crores)
10 Years at a Glance
Expenditure:
Materials
Direct Expenses
Pay & Benefits
Taxes and Duties
Other Expenses
Provisions and Losses
Prior period Adjustments
Exceptional items
Transfers
Total
Profit / (Loss) before interest,
Depreciation
Grant from GoI
Depreciation
Interest
Profit / (Loss) before tax
Income Tax
MAT credit enetitlement
Deferred Tax (asset) / liability
Net Profit / (Loss)
Profit & Loss Appropriation
Cumulative Profit / (Loss)
1.87
0.00
4.15
5.61
(7.89)
0.00
0.00
0.00
(7.89)
0.00
(1163.35)
139.94
87.90
15.74
28.29
47.01
318.88
2005-06
103.08
39.65
77.88
4.29
14.23
8.48
(0.86)
0.00
(11.64)
235.11
79.47
135.12
10.71
(10.07)
21.75
236.98
2004-05
308.95
0.00
4.06
34.70
270.19
78.27
0.00
(109.01)
300.93
0.00
(856.23)
190.19
80.16
92.64
13.49
19.12
45.15
(387.40)
41.31
(3.84)
90.82
159.95
93.02
74.66
45.60
26.54
399.77
2006-07
73.81
0.00
5.82
44.51
23.48
5.49
0.00
6.66
11.33
2.52
(847.42)
222.55
89.88
80.91
20.37
25.91
8.74
(7.66)
0.08
(4.45)
436.33
202.15
108.46
73.91
41.36
84.26
510.14
2007-08
(79.31)
0.00
6.93
50.49
(136.73)
6.85
0.00
(3.57)
(140.01)
0.00
(987.43)
264.66
62.10
126.93
28.68
31.03
14.07
54.44
0.00
(4.32)
577.59
194.17
144.13
57.52
64.32
38.14
498.28
2008-09
25.07
0.00
6.46
52.41
(33.80)
(31.86)
0.00
(4.26)
2.32
0.00
(985.10)
344.57
94.39
129.89
23.25
27.85
18.67
3.46
0.00
(5.12)
636.96
253.61
266.04
99.31
(10.53)
53.60
662.03
2009-10
(265.46)
452.68
7.68
14.35
165.19
44.83
(44.83)
110.19
55.00
0.00
(930.10)
441.52
79.78
257.48
24.50
26.82
71.89
5.63
0.00
(4.28)
903.34
291.49
277.38
83.27
(48.29)
34.03
637.88
2010-11
(66.19)
0.00
7.97
11.82
(85.98)
0.00
0.00
0.00
(85.98)
0.00
(1016.08)
255.85
99.07
199.90
29.66
28.47
56.34
5.21
0.00
(3.97)
670.53
254.76
193.51
115.77
0.00
40.30
604.34
2011-12
(29.51)
0.00
7.89
17.77
(55.17)
0.00
0.00
0.00
(55.17)
0.00
(1071.25)
238.39
76.91
183.06
20.81
26.42
33.08
8.41
7.59
(2.66)
592.01
196.08
152.97
134.79
0.00
78.66
562.50
2012-13
(29.43)
0.00
7.53
9.25
(46.21)
0.00
0.00
0.00
(46.21)
0.00
(1117.47)
186.05
99.55
187.90
22.95
27.40
19.13
8.13
0.29
(2.90)
548.50
239.14
68.70
145.56
0.00
65.67
519.07
2013-14
(` in crores)
10 Years at a Glance
75
76
17.
18.
19.
20.
21.
15.
16.
9.
14.
8.
7.
13.
6.
5.
12.
4.
3.
11.
2.
1.
10.
S.NO.
8.253
7.322
(Motor Launch)
7.311
7.248
8.114
8.100
8.087
8.125
8.125
8.134
8.141
8.137
8.150
8.138
8.179
8.179
Dead Weight
Tonnes
8.160
2.470(Passenger cum
Cargo Vessel)
SHIPS BUILT
Date of Laying
Keel
08-12-1955
10-08-1955
27-09-1954
02-09-1954
16-12-1953
19-10-1953
30-09-1953
01-12-1953
21-07-1952
21-07-1952
26-12-1951
09-05-1951
09-05-1951
28-09-1950
26-01-1950
26-01-1950
07-10-1949
27-05-1948
23-05-1947
22-08-1946
22-06-1946
16-02-1957
25-07-1956
31-12-1955
29-03-1956
02-11-1955
18-08-1954
26-03-1955
16-08-1954
09-11-1953
26-08-1953
09-07-1952
27-02-1952
15-12-1951
26-03-1951
27-12-1950
14-09-1950
06-12-1949
08-08-1949
18-12-1948
20-11-1948
14-03-1948
Date of
Launching/Floating
31-12-1957
04-12-1957
25-09-1957
25-11-1956
23-05-1956
18-03-1958
29-12-1955
22-06-1955
19-08-1954
15-07-1954
17-10-1952
09.08.1952
09-06-1952
02-07-1951
03-04-1951
18-01-1951
04-04-1950
20-12-1949
19-05-1949
07-04-1949
26-10-1948
Date of
Delivery
Ships Built
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
25.
44.
24.
23.
43.
22.
S.NO.
77
12,923
12,912
12,915
12,947
(Launch)
12,873
(Survey Vessel)
12,913
12,608
12,577
12,565
12,606
12,557
9,666
9,644
9,632
5,405
6.419
(Mooring Vessel)
6.391
7.312
7.312
Dead Weight
Tonnes
13-11-1963
26-04-1963
06-09-1962
24-05-1962
08-01-1962
14-10-1957
12-10-1961
05-05-1961
22-09-1960
27-08-1960
29-09-1960
02-12-1959
11-05-1959
22-01-1959
16-11-1960
03-10-1959
22-08-1957
07-12-1957
27-01-1956
31-08-1957
04-08-1956
16-04-1956
Date of Laying
Keel
09-12-1965
01-07-1965
05-12-1964
16-04-1964
15-10-1963
02-11-1959
29-03-1963
17-08-1962
06-04-1962
20-12-1961
25-01-1961
16-04-1961
06-09-1960
29-04-1960
11-06-1960
31-12-1959
22-04-1959
12-12-1958
16-07-1958
05-07-1958
22-11-1957
29-07-1957
Date of
Launching/Floating
11-10-1966
02-08-1966
31-03-1966
29-01-1966
20-08-1965
04-05-1965
28-12-1964
12-11-1964
23-09-1963
30-04-1963
28-01-1963
14-09-1962
06-04-1962
02-10-1961
18-05-1961
25-03-1961
16-01-1961
27-01-1960
27-10-1959
16-11-1959
10-06-1959
26-07-1957
26-03-1958
Date of
Delivery
Ships Built
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
45.
S.NO.
78
21,393
21,298
14,197
13,762
13,765
13,971
13,986
13,967
(Dredger)
(Training Ship)
12,881
(Landing Craft)
12,883
Launch
12,881
12,852
12,900
12,931
12,937
12,972
12,959
12,886
12,886
Dead Weight
Tonnes
30-08-1973
11-09-1972
29-03-1972
25-11-1971
30-06-1971
23-12-1970
18-03-1970
26-08-1970
27-08-1971
20-10-1969
26-06-1969
01-05-1971
16-12-1968
12-03-1970
06-06-1968
22-11-1967
19-05-1967
13-02-1967
23-01-1968
24-12-1965
23-08-1965
08-01-1965
04-05-1964
Date of Laying
Keel
03-10-1974
22-06-1974
26-01-1974
17-08-1973
06-03-1973
23-08-1972
17-03-1972
02-11-1071
12-07-1972
25-04-1971
30-11-1970
14-07-1971
20-07-1970
14-12-1970
09-02-1970
08-10-1969
20-03-1969
24-09-1968
15-04-1968
15-11-1967
26-1967
28-12-1966
01-10-1966
Date of
Launching/Floating
30-11-1975
23-03-1975
16-03-1975
16-08-1974
04-03-1974
16-10-1973
18-05-1973
02-03-1973
11-02-1973
27-03-1972
22-10-1971
30-09-1971
02-07-1971
31-12-1970
12-09-1970
20-04-1970
17-12-1969
11-05-1969
29-01-1969
12-09-1968
02-03-1968
03-12-1967
02-10-1967
Date of
Delivery
Ships Built
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
68.
S.NO.
Date of Laying
Keel
28-01-1974
79
26,713
16,806
1,240
26,728
1,240
1,231
16,789
26,710
16,700
20,854
(Landing Craft)
20,850
20,868
20,914
21,344
21,283
21,365
21,406
14,089
21,420
04-02-1983
05-12-1979
12-08-1984
03-10-1981
22-05-1984
22-04-1984
30-05-1979
09-03-1981
19-03-1979
25-10-1977
29-10-1980
12-04-1977
25-10-1976
02-07-1976
26-02-1976
21-11-1975
26-07-1975
16-03-1976
07-10-1974
26-06-1974
21,383
Dead Weight
Tonnes
25-11-1984
10-01-1982
29-01-1985
20-08-1983
10-03-1985
24-11-1984
03-06-1981
30-01-1983
27-07-1980
01-12-1979
06-05-1981
11-07-1979
03-11-1978
16-03-1978
04-08-1977
23-12-1976
24-10-1976
30-03-1976
17-11-1975
24-07-1975
30-11-1975
14-03-1975
07-08-1975
Date of
Launching/Floating
02-03-1987
08-07-1986
24-09-1986
31-03-1986
19-03-1986
09-12-1985
12-12-1984
16-07-1984
16-06-1983
27-03-1981
29-09-1981
11-09-1980
05-12-1979
16-04-1979
27-10-1978
29-03-1978
25-06-1977
12-03-1977
30-10-1976
06-09-1976
30-03-1976
20-03-1976
28-02-1976
Date of
Delivery
Ships Built
80
104.
105.
106.
107.
108.
109.
110.
111.
112.
Argo C.I.W.C
99.
Matla C.I.W.C
98.
103.
Mandakini C.I.W.C
97.
Mahanadi C.I.W.C
96.
102.
Manjari C.I.W.C
95.
Mundeswari C.I.W.C
94.
101.
93.
92.
100.
91.
S.NO.
30 T.B.P Tug
1,000
OPV
26,718
OPV
OPV
LSTL
OPV
26,714
26,790
825 (Barge)
825 (Barge)
825 (Barge)
825 (Barge)
825 (Barge)
825 (Barge)
26,639
9,113
1,242
Dead Weight
Tonnes
22-03-1994
20-11-1994
10-09-1994
18-09-1986
01-09-1993
16-06-1989
28-08-1985
16-06-1989
25-06-1988
30-11-1989
25-06-1988
30-03-1985
19-07-1984
1-8-1987
1-8-1987
1-8-1987
1-8-1987
1-8-1987
1-8-1987
05-03-1982
12-08-1984
12-08-1984
Date of Laying
Keel
11-12-1996
22-03-1996
29-03-1997
23-09-1992
10-12-1994
23-10-1991
31-07-1988
22-08-1990
16-10-19891
01-04-1991
23-05-1989
29-05-1987
24-03-1985
07-02-1989
10-01-1989
10-11-1988
27-10-1988
10-11-1988
27-10-1988
16-07-1984
18-08-1985
23-06-1986
Date of
Launching/Floating
09-12-1999
15-01-1998
12-09-1997
06-01-1996
23-01-1995
03-11-1993
28-06-1993
16-12-1992
04-10-1991
02-05-1991
20-11-1990
23-02-1990
12-04-1989
03-03-1989
03-03-1989
03-03-1989
03-03-1989
03-03-1989
03-03-1989
27-10-1988
04-11-1987
28-05-1987
Date of
Delivery
Ships Built
10 x 8 x 2 Meters
10 x 8 x 2 Meters
10 x 8 x 2 Meters
10 x 8 x 2 Meters
10 x 8 x 2 Meters
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
500 M Dredger
115.
18.11.1999
10-11-1999
11-10-1999
10-11-1999
11-10-1999
18-01-2000
17-08-1999
30-09-1999
30-09-1999
13-04-1997
05-07-1998
05-07-1998
Date of Laying
Keel
Launch
30.09.1999
08.12.1999
18.11.1999
114.
Dead Weight
Tonnes
113.
S.NO.
05.09.2003
06.10.2002
23.04.2001
05.09.2003
23.04.2001
05-01-2001
25-01-2002
05-01-2001
15-11-2001
31-08-2001
19-04-2001
27-10-2000
27-10-2000
21-10-1998
22-03-1999
22-03-1999
Date of
Launching/Floating
11.02.2005
08.02.2005
02.02.2005
02.02.2005
02.02.2005
09.02.2005
11.02.2005
02.01.2005
15.07.2004
09.05.2004
20.05.2004
29-01-2004
24-12-2003
10-11-2003
31-03-2003
04-10-2002
03-08-2002
17-01-2002
16-10-2001
15-09-2000
27-05-2000
17-01-2000
Date of
Delivery
Ships Built
81
82
139.
140.
141.
142.
143.
144.
145.
146.
147.
138.
149.
137.
136.
148.
135.
S.NO.
15.10.2008
14.06.2004
14.02.2005
03.01.2008
16.05.2007
22.01.2007
03.11.2005
17.06.2003
11.01.2003
Date of
Launching/Floating
14.06.2004
08.12.1999
21.10.2000
02.01.2007
18.01.2006
29.07.2005
23.12.2004
03.11.2000
08.12.1999
Date of Laying
Keel
08.12.1999
700 Passengers-160 T
Cargo vessel
Utility Launch
Utility Launch
Utility Launch
Utility Launch
50 T B.P.Tug
10 x 8 x 2 Meters
Dead Weight
Tonnes
27.04.2009
06.11.2008
06.11.2008
27.06.2008
07.05.2008
23.01.2008
31.05.2007
02.11.2006
02.11.2006
18.07.2006
18.07.2006
14.06.2006
01.09.2005
20.05.2005
08.02.2005
Date of
Delivery
Ships Built
151.
152.
153.
154.
155.
156.
157.
158.
159.
160.
161.
162.
150.
S.NO.
Dead Weight
Tonnes
27-12-2010
05-03-2011
27-12-2010
30-12-2010
25-06-2007
21.03.2009
31-03-2010
25-06-2007
21.03.2009
21.03.2009
09.01.2008
20-01-07
18.12.07
Date of Laying
Keel
03-08-2013
03-08-2013
03-08-2013
12-06-2012
28-05-2009
04-11-2010
31-03-2011
28-05-2009
14-07-2010
29.03.2010
23.03.2009
05.06.2008
14.11.2008
Date of
Launching/Floating
31-03-2014
24-12-2013
24-12-2013
29-07-2013
08-05-2013
10-08-2012
17-02-2012
05-01-2012
30-12-2011
05.02.2011
12.04.2010
17.08.2009
10.08.2009
Date of
Delivery
Ships Built
83