Annual Report 2018-19 - HSL

HINDUSTAN SHIPYARD LIMITED

PAPERS TO BE LAID ON THE TABLE OF LOK SABHA / RAJYA SABHA

AUTHENTICATED

RAKSHA RAJYA MANTRI

Contents

Board of Directors 01

Chairman’s Statement 03

Notice 08

Board’s Report 12

Corporate Governance Report 25

Management Discussion & Analysis Report 35

Annual Report on CSR 39

Extract of Annual Return 41

Independent Auditors’ Report 55

Comments of the Comptroller & Auditor General of India 67

Balance Sheet 70

Profit & Loss Accounts 71

Notes to the Accounts 72

Notes forming part of Accounts 82

Cash Flow Statement 95

Social Overheads 96

Last 10 years at a glance 98

Ships built 100

ƒÁu |N˛ u∫úÁzb|Annual Report2018-19

u“ãtÏÀoÁå u∆úÆÁg| u¬u™bzgHINDUSTAN SHIPYARD LIMITED

1

Board of Directors

RAdm L V Sarat Babu, NM, IN (Retd.)Chairman & Managing Director

BANKERS• Indian Bank• State Bank of India• UCO Bank• Syndicate Bank• Canara Bank• Central Bank of India• Andhra Bank• Union Bank of India

Shri Inaitula BaigCompany Secretary

Cmde Hemant Khatri, IN (Retd)

Director (Strategic Project)Cdr J.P. Gupta, IN (Retd)

Director (Corp. Planning & Personnel)

Shri V.P. SreepadmanabhanIndependent Director

Shri S.V. RambabuDirector (Finance & Commercial) &

Chief Financial Officer

STATUTORY AUDITORSM/s GR Kumar & Co LLP

Chartered Accountants, Visakhapatnam

COST AUDITORSCMA U Prakash

Cost Accountant, Visakhapatnam

INTERNAL AUDITORSM/s Brahmayya & Co

Chartered Accountants,Visakhapatnam

Shri Shrish KumarOSD, DDP/MoD

Government Nominee Director

Dr Bijoy Kumar SahooIndependent Director

Registered & Corporate Office :Gandhigram P.O., Gandhigram,

Visakhapatnam - 530005

Corporate Identity Number (CIN)U74899AP1952GOI076711


ƒÁu |N˛ u∫úÁzb|Annual Report 2018-19 2

Vision

To be an Internationally competitive Shipyard for building & repairs of ships &

submarines

Mission

To strive to continuously innovate and improve upon its performance for timely completion

of construction and repair of ships and submarines within the budgeted cost and fulfilling

the requirements of quality that is expected by its customers.

Objectives

• To construct and repair of Naval ships and Strategic / Conventional submarines

• To modernise the yard for efficient construction of Naval ships and submarines

• To augment technological capabilities for the design and construction of ships and

submarines

• To develop the expertise and adequately skilled manpower necessary for the anticipated

future orders

• To incorporate 'Best Practices' in all key activities of the yard including production,

planning, purchase, marketing and human resource management

• To upgrade welding, cutting, plumbing and outfitting techynologies

• To upgrade ERP and IT systems for efficient information management and

transparent operations

• Finalisation of ToT and design collaborations for new ships and submarine projects

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Chairman’s Statement at 67th Annual General Meeting

Dear Shareholders,

It gives me immense pleasure to welcome you all to the67th Annual General Meeting of your Company and appriseyou on its performance during the year 2018-19. I amdelighted to state that your company has strengthenedits position during the year under review and despite manyoperational challenges, your company has posted profitsconsecutively for the fourth year in a row.

The Company’s Annual Accounts for the financial yearended on 31st Mar 2019 along with Board’s Report,Auditor’s Report and Nil Comments of C&AG have alreadybeen circulated to all concerned. Before I enumeratevarious aspects of company’s performance, progress,modernization, future plans and other issues related toemployee welfare, let me briefly highlight the ship buildingindustry scenario which has significant effect on ourcompany’s performance.

Shipbuilding Industry Scenario

The shipping and shipbuilding scenario for the year 2018-19 had begun on brighter note for mercantile marine aftera sluggish year in 2017-18.

The Indian shipbuilding industry currently accounts for amere 1% of global shipbuilding market. At present Indiahas 27 Shipyards of which 19 belong to the private sector.The current cumulative shipbuilding capacity of IndianShipyards is around 0.5 million deadweight tonnage.Shipping transport industry/freight or cargo industry has235 shipping companies in India of which ShippingCorporation of India is the largest accounting for about33% of the total tonnage. India has one of the largestmerchant shipping fleets with about 997 vessels and isranked 17th in the world.



Your company has been dependent on domestic ship/submarine building/ repair orders viz., defence andcommercial orders. The Long Term perspective plans ofthe Indian Navy and Coast Guard offer a road mapindicative of the planned growth of our two importantclientele. Also, the refit plans of various ships andsubmarines give insight on the probable businessopportunities.

However, the opportunities are expected to improve andincrease as India has set its course to be a 5 trillioneconomy in the decade ahead. With a necessity forcapacity enhancement, shipping industry will enhance itsfleet strength, improve and construct new ports, shippingindustry will enhance its fleet strength, improve andconstruct new ports, shipping and logistic parks- inlandand along the coast, apart from improved thrust in theinland waterways and the untapped coastal shipping.

I now move on to the performance and other aspects ofour Company during the period under review

Company Performance

The year 2018-19 continued to be challenging in so farthe operations of the Company are concerned. Despitevarious operational challenges, it is indeed my privilegeto report that your Company has further strengthened itsperformance and posted profits consecutively for thefourth year in a row. During the year 2018-19 yourCompany achieved a total income of Rs 605.53 Cr and aValue of Production of Rs 594.90 Cr. Value of Productionof your company has been decreased as compared toprevious year due to lean order book position of thecompany.

During the year 2018-19, your Company has posted anoperating profit of Rs.68.08 Cr as against Rs 69.80 Crreported in the previous year. Even though, the operatingprofit has been marginally decreased over last year dueto lean order book, the operating profit margin has beenincreased to 11.43% from 10.85% recorded previous year.This is the testimony of the operational efficiency, thecompany has achieved during last four years despite manyoperational challenges and legacy liabilities.

Your company has achieved profit after tax (PAT) ofRs 36.24 Cr as against Profit of Rs 20.99 Cr reported lastyear. This translates to a 73% growth on year on yearbasis.

The operational indices of the company have also beenimproved significantly. These indices are now comparableto other profit making domestic shipyards and some ofthe indices are even better.

The accumulated losses and negative net worth of thecompany has also been reduced to Rs 1195.27 Cr andRs. 577.08 Cr respectively.

Execution of shipbuilding & ship repair Projects

During the year under review, Submarine Division hascontributed maximum to the Value of Production of theCompany by recording all time high value of Productionof Rs 317.80 Cr. The Value of Production fromShipbuilding and Ship Repairs have been declined by 52%and 15% respectively due to lean order book.

In the shipbuilding front, the flagship project of thecompany i.e. VC 11184 has been progressing satisfactorilyand the vessel is in the trials phase. The vessel is likely tobe delivered in the current fiscal. During the year 2018-19, we have delivered 07 vessels which include OneInshore Patrol Vessel to Indian Coast Guard, One 50 TonBP Tug to M/s Deen Dayal Port Trust, 03 Nos 10 Ton BPTugs to Indian Navy and Two Pontoons to the NavalDockyard, Visakhapatnam. Besides this, one more 10 TonBP Tugs was also handed over to Indian Navy in Jul 2019.With two more deliveries of 10 Ton BP Tugs, the yard isall set to complete all legacy projects.

Presently, 02 Diving Support vessels and 04 no 50 TonTugs are under construction. These projects are onschedule and the yard is putting all efforts to achieve keymilestones in these projects by the end of the currentfiscal.

In the ship repair front, the yard has undertaken repair of12 vessels. During the year under review the ship repairbusiness remained relatively lean as compared to previousyear due to low order book. However, our strategies tobag major ship repair orders during the year have yieldedresults. The yard has bagged two major ship repair ordersof Rs 150 Cr besides regular refit orders. During yearunder review major thrust in ship repair was to timelydelivery, customer satisfaction and quality of repair work.

I have already said that, the submarine division hasexhibited outstanding performance by posting an all-timehigh VoP in the year 2018-19. The physical progress ofthe refit is as per the schedule and the boat has beenundocked on 22 Jul 2019. The yard is putting its all-outefforts to ensure delivery by Nov 2019.

Order Book Position & Future Business avenues

As on date, the balance order book value for shipconstruction is about Rs 2689 Cr, majority of whichcomprises 02 Diving Support Vessel and 04 Nos 50 Ton



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BP Tugs for Indian Navy. The construction of these shipbuilding orders have been commenced.

With regard to nominated high value shipbuilding projectsi.e. five nos Fleet Support Ships whose AoN cost is aboutRs 9045 Cr, the yard has finalized M/s Anadolu Shipyardof Turkey as the design collaborator. Detailed negotiationon various techno commercial terms are in progress withthe firm and the contract for design collaboration wouldbe signed in the current fiscal. Post signing of contractwith Design collaborator, contract for construction of FSSswill be signed with Indian Navy.

As brought out earlier, the management has adopted newstrategies to bag high value Ship repair orders and havebeen successful in them. The yard has bagged two highvalue ship repair orders of Indian Navy worth Rs 150 Cr.In order to increase the Ship repair business, a “Milan”workshop was conducted with various reps of contractors/owners of the vessels in shipping industry.

Your Company also proposes to undertake MRLC ofanother EKM Class submarine and in the process ofbidding for it. Further, the yard has also expressed itsinterest in construction of 06 Submarines for Indian Navyunder the Project 75 (i) in collaboration with Adani DefenceSystem & Technolgies Ltd (an adani group company anda subsidiary of Adani Enterprises Ltd). Towards this, theyard is in the process of formation of a Joint Venture withAdani Defence System & Technolgies Ltd with theapproval of GoI/ NITI Ayog for Special Purpose Vehicle(SPV). The SPV will submit its bid for construction of 06Submarines and will undertake construction if emergedas the lowest bidder.

Financial Status & Operational Challenges

As brought out in previous general meetings, the financialposition of the company continued to be challenging. Theyard has a negative net worth of Rs 577 Cr andaccumulated losses of Rs 1195 Cr has been a hindrancein the qualification process of bidding in some of thelucrative shipbuilding tenders. The proposal for financialrestructuring with zero cash outgo is still underconsideration by the Govt of India and a positive decisionwill alleviate the situation of the company.

With regard to the Essar oil Claims, the yard has depositeda total of Rs 68 Crs with Essar Oil as a part of the claimand under direction of the Hon’ble High Court of AndhraPradesh in addition to the amount of Rs 40 Cr depositedin the year 2017-18. Thus the stay granted by the Highcourt has become permanent. Towards this, Govt of Indiahas sanctioned a loan of Rs 169 Cr to meet its legacy

liabilities which has eased the situation of liquidity but sincethe rate of interest is higher than the market rate, theyard will be deprived of taking its benefit. MoD has beenrequested to consider reduction of interest rate.

With regard to the appeal made by ONGC against thePMA award, the decision of Committee of Secretaries isyet to come. Since ONGC is not eager for any amicablesolution and that the matter is being delayed, thereceivable expected from the said award could not berealized during the year under review.

Past outstanding employee liabilities such as WageRevision Arears (2009) and Leave encashment arrearshave remained as a cause for concern. Despite variousfinancial challenges, the company has cleared 60% ofoutstanding wage revision arrears (2009) and LeaveEncashment dues upto Mar 2015.

MOU Grading

The Performance of the company for the year 2018-19based on the self-appraisal is “Excellent” in terms of theMoU signed with the Ministry of Defence.

Corporate Governance

Your Company is complying with the Guidelines onCorporate Governance for CPSEs issued by theDepartment of Public Enterprises (DPE). Necessarydisclosures have been made in this regard in theCorporate Governance Report which forms part of theBoard’s Report. The Company has achieved “Excellent”grading for Corporate Governance for the financial year2018-19 in terms of the said guidelines. Vacancies ofIndependent Directors has been apprised to theAdministrative Ministry.

Yard Modernization

The first phase of the modernisation i.e. theRefurbishment and replacement of Machineries andInfrastructure (RRMI) is presently under progress withfinancial support from Govt. of India. As on 31 Mar 2019,orders worth Rs 189.57 Cr have been placed. Out of whichwork for Rs 161.91 Cr has been completed. Tendersvalued at Rs 31.28 Cr are under progress.

As part of infrastructure upgradation, implementation ofSAP ERP solution along with PLM is in progress. TheSAP ERP system has gone live on 22nd Jul 2019

As brought out in my previous addresses, your companyhas completed installation and commissioning of 02 MW



rooftop Solar PV system at HSL through M/s CleanmaxEnviro Energy Solutions Pvt Ltd. The project wasimplemented in OPEX model as prescribed by SECI andthe tariff is fixed at Rs 3.939 per kWh. Post commissioningof Solar Power plants in HSL, the yard has been payingRs 3.939 kWh as against Rs 5.50 per kWh from AndhraPradesh Eastern power distribution company Ltd. Thusthe yard was able to save around Rs 1.02 Cr per annumtowards the electricity consumption. Encouraged with thetrend, the yard is in process of installation &commissioning of 1 MW solar power plant in the currentfiscal.

Skill Development

The yard’s initiatives in the field of skill developmentinclude training of Trade, diploma & degree apprenticesas well as vocational trainees. 21 ITI apprentice trainees,27 engineering graduates and 14 Diploma Trainees weretrained in their respective streams during the year 2018-19. On the job training and project work was also extendedto 1555 students of various engineering colleges,management institutions and marine institutes. Yourcompany also extends Industrial Training to the studentsof various professional institutes. Your Company alsoextends industrial training for professional courses suchas CMA & CS courses under skill development.

Corporate Social Responsibility

As per DPE guidelines and Companies Act 2013,considering an average net profit for the immediatelypreceding three financial years, your shipyard has fixed abudget of Rs 63 lakhs during the year 2018-19. Againstthis, the yard could spend only Rs 3.36 lakhs. Balanceamount could not be spent due to the adverse liquidityposition of the company due to payment of legacy liabilitiesduring the year under review.

Major CSR related activities undertaken during the yearwas ie., Free Medical Camp, Blood donation camp,support to educational institutions by the way of freeelectricity & water etc. A detailed report on CSR is placedas annexure to the Board’s Report 2018-19 in accordancewith the Section 135 of the Companies Act 2013 and rulesmade thereunder.

Swatch Bharat campaign

Your Company fully adheres to the Hon’ble PrimeMinister’s Nationwide Swachh Bharat Campaign with the

awareness and participation by all employees andresidents of nearby area with an aim to make it a massawareness movement and bring about a lasting changein the mindset. A voluntary program was initiated whichinvites every employee to spend at least 02 hours a weektowards cleanliness of their surroundings.

Under “Swathta hi seva” program, various cleanlinessdrives were organised to sensitise employees, residentsof township and people residing in surrounding areas.Swatchata Pakhwada was conducted thrice during theyear from 24 Aug 2018 to 07 Sep 2018, 15 Sep 2018 to02 Oct 2018, and 01 Dec 2018 to 15 Dec 2018. Variousrallies, march past and mini marathons were conductedto spread the message for a clean and green life.

Indigenisation & Make-in-India campaign

Your Company has been contributing towards the Make-in-India Campaign in a bigway. It has set-up a MAKE ININDIA cell and launched MAKE IN INDIA portal in itswebsite for vendors, with an objective of ensuringmaximum indigenisation. The portal caters to therequirements of prospective vendor’s information. Effortsare also being made to identify potential indigenousvendors in line with “Make in India” initiative of Governmentof India. Besides this various measures have been takenfor promoting indigenous defence manufacturing in theMSME sector and same has been elaborated in Board’sReport as a separate section under Make in Indiainitiatives.

Industrial Relations

The Company maintains harmonious industrial relationswith the work force. The recognised and the supportingtrade unions of the shipyard are constructive in theircontribution towards improvement of the company.Periodical interaction of C&MD with all the employees isbeing held for enabling them to be aware of the ongoingcompany affairs and to avoid communication gaps.

Morale, Motivation & Welfare Measures

During the year under review, following importantmeasures that have been taken to boost morale andimprove motivation levels of the company.

(a) Pay revision of officers w.e.f 01 Apr 2018 has beenconsidered by the Board and forwarded to Ministry forapproval. The wage revision for workers and staff hasalso been considered and forwarded to Ministry forapproval in the current fiscal.



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(b) Various Junior and senior level officers werepromoted during the year under review.

(c) Despite financial constraints, one instalment ofwage revision arrears was paid. With this 60% ofoutstanding wage revision arrears has been cleared.Further leave encashment dues of the retired employeeswho have retired upto Mar 2015 have been paid. The totalcash out go was Rs 19.95 Cr in the year 2018-19.

(d) 77th Foundation Day and Founders Day of HSL wascelebrated to commemorate the foundation of Shipyardand to pay tributes to the Founder of Shipyard, Shri SethWalchand Hirachand.

Awards

The shipyard has also been bestowed with ‘GovernanceNow’ award in the category of ‘Resilient Growth’ on 17Jan 2019 for its remarkable financial performance. TheGovernance Now Awards recognizes the efforts of PublicSector Undertakings (PSUs) that have been a key to thecountry’s growth. Further, HSL also received theprestigious ‘SKOCH AWARDS 2019’ in the category of“Corporate Excellence – Turnaround” on 29 June 2019.

Acknowledgements

I would like to place on record our gratitude andappreciation for the assistance, co-operation and

guidance received by the Company from various Ministriesof the Government of India, especially the Ministry ofDefence, Department of Defence Production, theIntegrated Headquarters (Navy)/MoD, the Indian CoastGuard, Comptroller & Auditor General of India, Controllerof Defence Accounts (Navy), Government of AndhraPradesh, Flag Officer, Eastern Naval Command and lookforward to their continued support in the future. Iacknowledge with gratitude the continued patronage andsupport received from the Company’s clients, OEMs andVendors. I also thank the Classification authorities,Company’s Bankers and Auditors for their help and co-operation. I thank all my colleagues on the Board for theirharmonious support and immense encouragement. Myspecial appreciation to the collective efforts of the entireHSL Team working tirelessly to make the companyprofitable.

Thank You.

L V Sarat Babu, NM, IN (Retd)Rear Admiral

Chairman & Managing Director

Visakhapatnam27 Sep 2019



NOTICE OF 67th ANNUAL GENERAL MEETING

NOTICE is hereby given that the 67th Annual General meeting of the Shareholders of the Hindustan Shipyard Ltd., willbe held on Friday, the 27 Sep 2019 at 1200 hours at Board Room, HSL Corporate Office, Gandhigram PO,Visakhapatnam 530005 to transact the following business:

1. Ordinary Business:

(a) To receive, consider and adopt the Board’s Report and the Audited Accounts for the year ended 31March, 2019 along with the Auditors Report thereon.

(b) To fix the remuneration of the Auditors to be appointed by the Comptroller & Auditor General of India forthe financial year 2019-20.

2. Special Business

(c) To ratify the remuneration payable to the Cost Auditor appointed by the Board of Directors of the Companyfor the financial year 2019-20 pursuant to Section 148 and all other applicable provisions of the Companies Act,2013 and the Companies (Audit and Auditors) Rules, 2014 by passing with or without modification(s), thefollowing resolution as an Ordinary Resolution.

“RESOLVED THAT, pursuant to the provisions of Section 148 and all other applicableprovisions 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 remuneration of Rs.65,000/- (exclusive of out of pocket expenses) plus applicable GSTpayable to the cost Auditor appointed by the Board of Directors of the Company, to conductthe audit of the cost records of the Company for the financial year 2019-20 be and is herebyratified.”

RESOLVED FURTHER THAT the Board of Directors of the Company be and is herebyauthorized to do all acts and take all such steps as may be necessary, proper or expedientto give effect to this resolution.”

(d) To enhance the Borrowing powers of the Board of Directors from Rs 2000 Crs (Rupees Two ThousandCrores) to Rs 4500 Cr (Rupees four thousand five hundred Crores) in excess of Paid-up Share Capital and freereserves of the company by passing with or without modification(s), the following resolution as an SpecialResolution.

“RESOLVED THAT pursuant to Section 180 and other enabling provisions, if any, of the ofthe Companies Act, 2013 and subject to the approval of such other authority/institution asmay be required, the Board of Directors of the Company be and are hereby authorized andshall be deemed to have always been so authorized to raise or borrow, for and on behalf ofthe Company, any sum or sums of money from time to time from State or Central Governmentor one or more bodies corporate or Banks or Financial Institutions or Overseas CorporateBodies or Foreign Financial Institutions or any other agency, either domestic or foreign orthe public either Resident/Non-resident by way of cash credit, advances, deposits or bridgeloans, term loans or any other loans either in Indian Currency or in Foreign Currency, whetherunsecured or secured by mortgage, charge, hypothecation or pledge of the Company’sassets and properties whether movable and/or immovable or stock-in-trade (includingbook debts, bills, raw materials, stores and spare parts and components in stock or intransit) and debts and advances, notwithstanding that the sum or sums so borrowed together



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with the sums, if any, already borrowed by the Company (apart from the temporary loansobtained from the Company’s bankers in the ordinary course of business) may exceed inthe aggregate of the paid-up capital of the Company and its free reserves, that is to say,reserves not set apart for any specific purposes so that the total amount upto which themoneys may be so borrowed in excess of the paid up capital and free reserves shall not atany one time exceed Rs.4500 Cr (Rupees four thousand five hundred crores only).

RESOLVED FURTHER THAT the Board of Directors of the Company be and are herebyempowered to do all necessary acts and things, sign and file all necessary papers anddocuments and for this purpose to nominate one or more officials who shall also be authorizedlikewise from time to time to give effect to the above resolution.”

By Order of the BoardHindustan Shipyard Limited

(Inaitula Baig)Company Secretary

FCS-4517

Date: 03 Sep 2019Place: Visakhapatnam

Notes :

1. A member entitled to attend and vote at the Annual General Meeting (the “Meeting”) is entitled to appoint aProxy to attend and vote instead of himself and a proxy need not be a member of the Company. The instrumentappointing proxy should, however, be deposited at the Registered Office of the Company not less than 48hours 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 betransacted at the Meeting is annexed hereto.

3. Relevant documents referred to in the accompanying Notice and the Statement are open for inspection by theMembers at the Registered Office of the Company on all working days, during business hours up to the date ofthe meeting.

To

All the Shareholders,Chairman of the Audit Committee.All DirectorsStatutory Auditors,



STATEMENT PURSUANT TO SECTION 102 (1) OFTHE COMPANIES ACT, 2013

Item No. (c)

The Board has approved the appointment of CMA Prakash Uppalapati, Practicing Cost & Management Accountant asCost Auditor to conduct the audit of the cost records of the Company for the financial year 2019-20 at an audit fee ofRs. 65,000/- excluding out of pocket expenses plus applicable GST in its 405th Meeting held on 26 Jul 2019.

In accordance with the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Audit andAuditors) Rules, 2014, the remuneration payable to the Cost Auditors has to be ratified by the shareholders of theCompany.

Accordingly, consent of the Members is sought for passing an Ordinary Resolution as set out at item No. (c) of theNotice for ratification of the remuneration payable to the Cost Auditors for the financial year 2019-20.

None of the Directors / Key Managerial Personnel of the Company / their relatives are, in any way concerned orinterested, financially or otherwise, in the resolution set out at Item No.(c) of the Notice.

The Board recommends the Ordinary Resolution set out at Item No (c) of the Notice for approval by theshareholders.

Item No. (d)

Pursuant to Section 180 of the Companies Act 2013, all Companies including Private Limited Companies are requiredto take the approval of the shareholders for fixing the Borrowing Limits of the Board of Directors when the totalborrowing together with money already borrowed exceeded the aggregate value of its paid up share capital and freereserves.

The provision of Section180 states that “The Board of Directors of a company shall exercise the following powers onlywith the consent of the company by a special resolution to borrow money, where the money to be borrowed, togetherwith the money already borrowed by the company will exceed aggregate of its paid-up share capital and free reserves,apart from temporary loans obtained from the company’s bankers in the ordinary course of business”.

The Company has a paid up share capital of Rs 301.99 Cr and no free reserves. Thus the aggregate of the total paidup share capital and free reserves comes to Rs 301.99 Cr. The shareholders at the extraordinary General Meetingheld on 27 May 2014 at the registered office of the Shipyard has passed a Special Resolution to fix the borrowing limitof the Board of Directors at Rs 2000 Cr.

The Company has signed contract of 02nos. Diving Support Vessel and 04Nos 50 Ton Tugs for Indian Navy amountingto Rs 2653.65 Cr. As per the provisions of the said contract, the yard need to provide bank guarantees against certainstage payments of both the Contracts. Besides this, the yard also would be in need of LCs for procuring materials forthese projects. The additional non-fund based requirements for these two projects would be Rs 1769 Cr.



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The Company has already availed fund based and non-fund based limits of Rs 1701 Cr for various projects includingDSV. Further the Company has received Rs 169 Cr as loan from Government of India to clear legacy liabilities.Therefore, the existing borrowings of the company stands at Rs 1870 Cr which is already in excess of its paid upshare capital and free reserves.

Therefore, approval of the shareholders is being sought pursuant to Section 180 of the Companies Act, 2013, for theBoard of Directors to borrow monies in excess of the aggregate of the paid-up share capital of the Company and itsfree reserves.

The Board of Directors accordingly recommends the resolution set out at item no. (d) of the accompanying Notice forthe approval of the shareholders.

None of the Directors of the Company is, in any way, concerned or interested in the said resolution.

By Order of the BoardHindustan Shipyard Limited

(Inaitula Baig)Company Secretary

FCS-4517

Date: 03 Sep 2019Place: Visakhapatnam



BOARD’S REPORT

Dear Shareholders,

Your Directors are glad to present the 67th AnnualReport on the working of the Company for the financialyear 2018-19. The audited Profit & Loss account for thefinancial year 2018-19, Balance Sheet, as on 31 Mar 19,together with the report of the auditors of the Companyand comments of Comptroller & Auditor General of Indiaon the Auditors’ report under Section 143(6)(b) of theCompanies Act, 2013 are appended to this report.

Performance Highlights

2. Value of Production/ Revenue. During thefinancial Year 2018-19, your Company has achieved avalue of production of Rs 594.91 Cr as against Rs. 644.77Cr reported last year despite a lean order book during theyear 2018-19. Your Company achieved total income ofRs 605.54 Cr as against Rs 651.67 Cr in the previousyear. During the year under review the Company postedan Operating Profit of Rs 68.08 Cr as against Rs 69.80Cr of previous year.

3. Profit Before Tax: During the year 2018-19, yourCompany has recorded Profit Before Tax of Rs 36.24 Cras against Rs 20.99 Cr reported last year. With this, theaccumulated losses as on 31 Mar 19 has reduced to Rs1195.27 Cr as compared to Rs 1231.51 Cr reported lastyear.

4. Operational Indices. With the increased Value ofProduction as compared to last year, the operationalindices have also been improved significantly as indicatedbelow:

Parameter 2016-17 2017-18 2018-19

Value of Production (Rs Cr) 629.04 644.78 594.91

VoP per employee (Lakhs) 33.00 40.08 40.38

Net Profit (Rs Cr) 53.77 20.99 36.24

Employee Cost (% of VoP) 22% 20% 19%

Operating Profit (Rs Cr) 37.49 69.80 68.08

Net worth (Rs Cr) (-)751 (-)619 (-)577

Employee Cost as % of VoP

Net Worth

MoU Rating

5. Your Company was rated “Very Good” vis-a-visMoU 2017-18 by the Department of Public Enterprises.



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6. The assessment for the year 2018-19 will be doneby DPE on the basis of Annual Report to be submittedafter the Annual General Meeting. As per the internalassessment, in accordance with parameters laid down inthe Memorandum of Understanding signed with theGovernment for the year 2018-19, it is expected that yourCompany will be rated “Excellent” during the year2018-19.

Dividend

7. As per third proviso of Section 123 (1) ofCompanies Act 2013 as amended vide Companies(Amendment) Act 2015, the Company is not eligible fordeclaration of dividend due to its accumulated losses andunabsorbed depreciation despite posting a net profit ofRs 36.24 cr during the financial year 2018-19.

Capital Structure

8. As on 31 Mar 2019, the authorized share capitaland paid up equity share capital of the Company are Rs304.00 Cr and Rs 301.99 Cr respectively. During the yearunder review, there was no increase or decrease in theauthorized and paid up share capital of the company.

Contribution to National Exchequer

9. The contribution of your Company to the nationalexchequer during the year 2018-19 was Rs.59.66 Cr byway of Custom Duty, Service tax, CST & VAT and GST.

Financial Results

10. The summarized financial results of the Companyfor the year 2018-19 as compared to previous threefinancial years are as under: -

Rs in Cr

Description 2015-16 2016-17 2017-18 2018-19

VoP 593.29 629.04 644.78 594.91

Other Income 63.79 21.04 6.89 10.63

Total Income 657.08 650.08 651.67 605.54

Expenditure 617.09 570.27 574.98 526.83

Profit before Depreciation,Interest, Income Tax (PBDIT) 39.99 79.81 97.18 96.44

Depreciation 6.99 6.28 4.76 4.74

Interest & Finance Charges 14.00 15.00 15.73 12.99

Extraordinary Item 0.00 4.76 55.70 42.48

Net Profit 19.00 53.77 20.99 36.24

11. A comparative graph of Operating profit as apercentage VoP during last five financial years is as under.

Divisionwise Performance

12. During the year under review, the performance ofthree divisions i.e. Shipbuilding, Ship repair and submarinedivisions are enumerated in succeeding paragraphs.

Shipbuilding

13. The Shipbuilding division of your company achieveda Value of Production of Rs 145.47 Cr during the year asagainst Rs 303.98 Cr recorded last year.

14. During the financial year 2018-19, the yard hasdelivered seven vessels which include, One Inshore PatrolVessel to Indian Coast Guard, One 50 Ton BP Tug toDeen Dayal Port Trust, 03 Nos 10 Ton BP Tugs to IndianNavy and Two Pontoons to the Naval Dockyard. Further,other projects on hand such as the Support Vessel forIndian Navy, balance 03 Nos BP Tugs and Two NosBerthing Pontoons are at their advanced constructionstage.

Delivery of VC 11158 "Rani Rashmoni" to Indian Coast Guard



Ship Repairs

15. The Value of Production of Ship Repair Divisionduring the year was Rs 122.54 Cr as against Rs 143.84Cr recorded last year.

16. During the year, Ship Repair (SR) Division hasundertaken repair of 12 vessels of different types for IndianNavy, DCI, SCI, FSI, VPT etc. The yard has also beenaggressively participating in various ship repair tendersissued by Indian Navy, Coast Guard, DCI, SCI etc. In orderto increase the Ship repair business, a “Milan” workshopwas conducted with various shipping industryrepresentatives on docking and repair of merchantvessels.

18. HSL is in process of bidding for refit of anothersubmarine.

Order Book Position and Business Avenues as on 31Mar 2019.

19. The present order book position of the yardcomprises 15 vessels which are under various stages ofconstruction. As on 31 Mar 19, the balance contract valueof shipbuilding orders is worth Rs.2689.10 Cr as under:

Sl Yard Nos Type of the Vessel No of OwnerVessels

(a) 11184 Support Vessel 1 Indian Navy

(b) 11183, 80 & 78 10 T Bollard Pull Tugs 3 Indian Navy

(c) 11188-89 Berthing Pontoons for ND (V) 2 Indian Navy

(d) 11190-91 Diving Support Vessels 2 Indian Navy

(e) 11192-95 50 Ton BP Tugs 4 Indian Navy

(f) 11196-98 Flap Gates 3 Indian Navy

20. During the financial year 2018-19, the yard hassigned two major shipbuilding contracts with Indian Navyi.e. 02 Nos Diving Support Vessel and 04 Nos 50 Ton BPTugs. These orders were bagged in competitive biddingand shows the competitiveness of your company. Further,these orders came in right time when the yard has a leanorder book and have completed the delivery of most ofthe backlog shipbuilding orders.

21. Further, the yard is in the process of finalizingdesign collaborator for the 05 Nos Fleet Support Shipsfor Indian Navy. These orders are on nomination basisand would take order book of the company over Rs 10000Cr in coming years. The yard would submit its bid for 05Nos Fleet Support Ships in the current fiscal.

Submarine Division

17. Refit of a naval submarine commenced in the year2017-18. Completion of work and trials is being expedited.The VOP generated by Submarine division during the yearunder review was Rs 317.18 Cr.

Delivery of VC 11174, "KRITIKA" a 50 Ton BP Tug forM/s Deen Dayal Port Trust

Workshop named "MILAN" on docking and repairs ofmerchant vessels conducted at HSL

Signing of contract for 2 nos Diving Support Vessels forIndian Navy



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Modernization

24. The company has been investing significantlytowards Refurbishment & Replacement of Machineriesand Infrastructure using the RRMI fund sanctioned by the.Govt. of India (Rs 457.36 Cr) for the said purpose. As on31 Mar 2019, orders worth Rs 189.57 Cr have beenplaced, out of which procurement/ work for an amount ofRs 161.91 Cr has been completed. Tenders valued Rs31.28 Cr are under progress.

25. Major modernization activities undertaken duringthe year under review are Wire rope splicing machine,rubber fenders, replacement firefighting & gas pipelines,up-gradation of CCTV surveillance system, canteenmanagement devices, modernization of Officers Cafeteriaand Colony Dispensary Procurement of Medical

Awards & Recognition

22. HSL has been awarded “Vruksha Mitra Award(Environment)” by VMKSR Memorial Charitable Trust forthe year 2017-18 for Visakhapatnam region in the categoryof “Organization Scholar” on 31 Aug 18 for maintaining aclean and green environment in the yard.

23. Hindustan Shipyard Ltd (HSL) has been bestowedwith ‘Governance Now’ award in the category of ‘ResilientGrowth’. The Governance Now awards felicitationceremony was held at The Imperial, New Delhi on 17 Jan2019. RAdm LV Sarat Babu, NM, IN (Retd.), C&MD HSLalong with his team received this award from Hon’bleMember of Parliament Manoj Tiwari, Ms Poonam Dhillon,Veteran Actress & Social Activist and Shri MarkandAdhikari, Managing Director, SAB Group. The GovernanceNow Awards recognizes the efforts of Public SectorUndertakings (PSUs) that have been a key to the country’sgrowth.

Design

26. Design department has been equipped with state-of-the-art Aveva Marine software for complete designsolutions of ships and other marine structures. It also hasstate of the art IT infrastructure configuration. HSL hasrecently bagged 03 nos flaps gates contract from DGNPfor which design is being taken up in house. The detaileddesign of the 2 nos Diving Support Vessels for Indian Navyis being carried out within the design office premises. TheBasic, functional and detailed design of 04 nos 50 TonBollard Pull Tugs is being carried out in house with ownresources. The end to end process by implementing SAPwith integration to PLM is moving towards completion.This will enhance the design efficiency and reducesprocess time to the minimum.

27. In house capabilities for carrying out Structuralstrength calculation using 2D model, in-house basicdesign of critical ships like Pollution control vessels isbeing carried out to enhance skills of the designdepartment so as to progress towards achieving the statusof Centre of Excellence for the Design Department.

Future Prospects and new business initiatives:

28. As reported in previous years, the yard has wonthe bids for 02 Nos Diving Support Vessels and 04 Nos50 Ton Bollard Pull Tugs for Indian Navy. Contract forthese projects has been signed during the year 2018-19and with this the order book position of the company hasimproved reasonably.

29. However, in order to sustain the performance ofthe yard in the long run, the yard needs high value orders.Towards this, the yard has been nominated for

CMD reciving the "Governance Now" award from Hon'bleMember of Parliament Shri Manoj Tiwari

Infrastructure. Besides this various repair & renovationactivities to civil structures of the yard & colony werecarried out.

Renovated Officers Cafeteria "OCEANA"



construction of 05 Nos. Fleet Support Ships (FSS), theAoN cost of which is about Rs 9,045 Cr. A global RFP isissued on 06 Oct 2018 for selection of FSS collaboratorthrough global tendering process. Selection and signingof collaborators contract is expected to be completed incurrent fiscal i.e. 2019-20. Thereafter, the yard wouldsubmit its commercial bid to the Indian Navy.

30. Besides this, your company is focusing on bothdomestic orders in shipbuilding and continuously keepinga watch on appropriate projects in the international market.The company is looking forward for product diversificationwith composites which is a fast growing segment and hasinitiated efforts towards diversifying by participating inEOI’s of FRP boats and Air Cushion Vehicles.

31. In addition, to above the yard will be activelypursuing/participating to bag various national andinternational shipbuilding tenders. The following tendersare in the process of bidding viz Pollution control vessels,Missile Cum Ammunition barges, Fast patrol Vessels, AirCushion Vehicles, Next Generation Missile Vessels..etcfor Indian Navy and Coast Guard in the current fiscal year.

32. In the ship repair front, the yard has been biddingaggressively and has been successful in bagging a feworders. Your company is giving more thrust to secure Shiprepair business and all out efforts are being made to utilizethe dry dock to its optimum level. The yard is also in theprocess of bidding for refit of another submarine..

33. With these initiatives your company expects tosustain its performance in the long run and keep themomentum in future.

Quality Assurance

34. During the financial year 2018-19 with respect toQuality Audit, External Audit was organized through IRQS

in Jul 2018. First and Second Internal Audit for the year2018 have also been conducted. Quality Managementsystem ISO 9001:2008 has been upgraded ISO9001:2015 standard. IRQS, Kolkata has issued a ISO9001:2015 certificate, which is valid upto Oct 2021.Management review meeting was organized in Jul 2018.

Vendor Development

35. In order to develop and build-up a robust supplychain, efforts have been made to identify potentialindigenous vendors in order to support the “Make in India”initiative of Government of India. The objective is to createa strong vendor base which can support indigenouswarship construction & Submarine projects. Towards this,various Vendor development initiatives have been takenduring the year under review.

36. In order to educate the MSMEs on the requirementsof Shipbuilding industry, Officials from HSL participatedin various vendor development programs conducted byNSIC, CII, FICCI, MSME Development Institutes, DistrictIndustries Centres etc. during the Financial year 2018-19. During the period under review, 31.80% of the totalvalue of procurement and outsourcing has been done fromMSMEs. In order to encourage SC/ST owned MSMEenterprises, efforts are being made in coordination withNSIC & MSME DI to improve SC/ST vendors’ participation/base and the List of SC/ST MSMEs is being updated ona regular basis. Vendor registration is being done by HSLas a continuous process and 450 vendors have beenregistered during the financial year 2018-19, out of which180 are MSME vendors.

37. As a part of vendor development program, theCompany organized regional meet to strengthen theprocurements and identify potential vendors especiallyfrom MSE Sector, SC/ST sectors in line with Governmentof India policy. Further, the company also formallyregistered in Government e-Market portal (GeM Portal).

38. Your company has adopted Trade ReceivableElectronic Discounting System (TReDS), a paymentsystem introduced by Govt. of India in 2018 to ensuretimely payment to MSEs immediately after acceptance ofBill on a discounting system. Towards this, the companyis registered with RXIL for TReDS.

39. E-procurement has been introduced andsubstantial percentage of e-procurement done during theyear 2018-19. Further, in order to achieve substantialreduction in value of procurements as well as outsourcing,E-reverse Auction has also been done in the year2018-19.

CMD receiving ISO 9001 : 2015 certificate fromReps of IRQS Kolkata



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Safety & Security

40. The management is committed to accident free andsafe working environment. During the year, plant safetyinspections were undertaken by safety personnel. Unsafepractices have been identified and remedial measureshave been instituted. Central Safety Committee meetingswere conducted regularly. Safety banners, posters, cautionboards have been displayed to create safety awareness.

41. Safety training programs were organised forworkmen and supervisors and employees of contractworkers. A special safety drive was conducted from 01Oct 18 to 31 Dec 2018 during which safety awarenesstrainings were imparted to all employees. 48th NationalSafety Day was observed on 04 Mar 2019. The Chairman& Managing Director administered the safety pledge toall personnel of the yard. Safety competitions wereconducted during the Safety Week and prizes weredistributed to winners.

42. Fire Prevention & Safety week was observed for aweek from 14 Apr 2018 to 20 Apr 2018 as a tribute to FireFighters and a mock drill in firefighting was conducted toincrease the fire safety awareness among employees.

43. The Management has taken steps to strengthenthe security arrangement in the yard by improvinginfrastructure and procuring necessary security devices.The following augmentations took place during the yearunder review:-

(a) Procurement of 02 Nos Trolley Mirors, 04 Nos HighRange Binoculars and 10 Nos Walkie Talkie

(b) Installation of watch towers and CCTV Camera

(c) Conduct a mock drill by NSG Commandos.

(d) Conduct of a Recce & Mock drill for CounterTerrorist Operations (OCTOPUS) conducted at HSL.

Information Technology

44. Your company has taken various initiatives inleveraging IT for the benefit of stakeholders. Some of themajor initiatives taken during the Financial Year 2018-19are as under:

(a) Commissioned 20 Mbps Internet leased line toenhance the connectivity for video conference and highspeed browsing with high availability.

(b) Partnered with M/s Tech Mahindra, SystemIntegrator for realization of SAP, S4 HANA, business ERPSystem.

(c) Initiated the process for procurement ofInfrastructure solution designed for S4 HANA in terms ofservers, storage network and data center.

(d) Implementation of online performancemanagement system.

(e) Engaged third party audit to assess the vulnerabilityand penetration testing as part of cyber security. All thecritical observations have been liquidated and fewobservation are yet to be liquidated. Same is in process.

45. The Implementation of SAP ERP solution is inprogress to digitize the governance and businessfunctions. The SAP ERP is scheduled to “Go Live” in thecurrent fiscal.

Environmental Aspects

46. Your Company continues to be environment friendlyand has fulfilled all the statutory requirements of centraland state pollution control boards. The Company iscommitted to meet all the stipulated standards to maintainand protect the environment. Tree plantation drives andvarious green corridors have been created in the yard.

CMD administering safety pledge to the employees onNational Safety Day

Fire Service Week 2018



Swatch Bharat Initiatives

47. Your company is committed to Swatch Bharatmission of the Country in order to bring about a behavioralchange among stakeholders in nearby area. A voluntaryprogram was initiated which invites every employee tospend at least 02 hours a week towards cleanliness oftheir surroundings.

Make in India initiatives

50. A user-friendly portal for MAKE IN INDIA has beencreated as part of the official website of HSL. The portalcaters to the requirements of prospective vendorsproviding information like the Vendor registrationguidelines, items reserved for small scale industrial unitsand the business terms of HSL. A special link ‘informationto vendors’ is also displayed in the portal which provideslot of information for the benefit of users. A direct link tothe Make in India Page of GoI (http://www.makeinindia.com/) is also provided in the portal.

51. Further, HSL has set up Make in India Cell with anobjective of ensuring maximum indigenization which isheaded by the DGM (Design), the Nodal Officer forIndigenization, who is responsible for promotingIndigenization and implementation of Government policiesat Shipyard which are being promulgated by Governmentof India. The Name and contact details of the Nodal Officeris displayed on the Make in India portal of Shipyard

52. In addition, HSL has taken following measures forpromoting indigenous defence manufacturing :-

(a) The yard has indigenized various components ofVC 11184 through domestic vendors which was earlierbeing imported.

(b) Efforts are being made to indigenize variousequipment, systems and sub-systems for the existing aswell as future projects through various policiespromulgated by Govt. of India.

(c) The indigenous content for all project (Shipbuilding,Ship Repairs and Refit of Submarines) for the year 2018-19 remains at 59% of the total procurements andOutsourcing).

(d) The list of items which have been indigenised andthe list of items being taken up for Indigenization havebeen displayed on Make in India portal of Shipyard

53. Complying with the Public Procurement Policy forMicro and Small Enterprises (MSEs) Order, 2012, HSLhas been consistently endeavoring to provide maximumopportunities to MSEs. HSL has been consistentlyachieving the annual target of 20% procurement from MSEsector.

Visits of Parliamentary Committees & High levelDignitaries

54. During the year under review, the Committee onSubordinate Legislation, Rajya Sabha under the

48. Under “Swatch Action Plan” for the annual year,various cleanliness drives were organized during the yearto sensitize employees, residents of Company Townshipand other local residents in and around the yard.Swatchhata Pakhwada was organized thrice during theyear i.e. from 24 Aug 2018 to 07 Sep 2018, 15 Sep 2018to 02 Oct 2018 and 01 Dec 2018 to 15 Dec 2018.

March Past conducted by HSL as a part of"SWATCHHTA PAKHWADA"

Plantation of saplings by Cdr JP Gupta, Director (CP&P) as apart of "SWATCHHTA PAKHWADA"

49. With a view to spread the message for “a Cleanand Green life” under “SWATCHHTA HI SEWA” program,various Rallies, March Past, Mini-Marathons wereorganized drawing spirited participation from Directors,all Employees, school and college students and Colonyresidents of HSL.



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chairmanship of Dr. T Subbarami Reddy, Hon’ble MPvisited Vizag on 16 Jan 2019 in connection with the studyvisit regarding Solid waste, E-waste, plastic waste,hazardous waste and construction & demolition Wasterules with specific reference to Swatch Bharat Mission inwhich HSL made a presentation.

55. Besides this, the following high level dignitariesvisited Hindustan Shipyard Limited during the year2018-19:

(a) Dr. Ajay Kumar, IAS, Secretary (DefenceProduction) along with Shri SK Kohli, IDAS, FinancialAdviser (Defence Services) and Shri Vijayendra, IAS, JointSecretary (Naval Systems) on 23 Apr 2018.

(b) Vice Admiral Ajit Kumar P, AVSM, Vice Chief of theNaval Staff on 13 July 18.

(c) Shri K. Ramulu, Hon’ble Member of NationalCommission for Scheduled Caste visited HSL on 01 Sep18.

(d) Vice Admiral Karambir Singh, PVSM, AVSM, FlagOfficer Commanding in Chief, Eastern Naval Commandvisited HSL on 24 Oct 18.

(e) Shri Apurva Chandra, DG (Acquisition) and RAdmR Sreenivas, TM (M&S) on 11 Jan 2019.

(f) Shri K V Chowdary, Central VigilanceCommissioner visited HSL on 14 Feb 2019. The CVChas released the Bi-annual Newsletter of HSL and furtheraddressed all officers of HSL.

(g) Hon’ble Sri Justice M Ganga Rao, Judge, HighCourt of Andhra Pradesh visited HSL on 24 Feb 2019.

(h) A delegation of 59th National Defence College(NDC) Course comprising of 15 Indian Armed ForcesOfficers led by Maj Gen SC Mohanty, AVSM, SeniorDirecting Staff visited HSL on 07 Mar 2019.

Visit of Secretary (DP), Financial Advisor (Defence Services)and Joint Secretary (NS) to HSL on 23 Apr 2018

Visit of Vice Admiral Ajit Kumar P, AVSM, Vice Chief of theNaval Staff to HSL on 13 July 18.

Visit of Vice Admiral Karambir Singh, PVSM, AVSM, Flag OfficerCommanding in Chief, Eastern Naval Command to HSL on 24 Oct 18.

Visit of Shri K V Chowdary, Central Vigilance Commissionerto HSL on 14 Feb 2019

Visit of a delegation of 59th National Defence College (NDC)on 07 Mar 2019



(i) Shri Barun Mitra, IAS, Additional Secretary (DP)visited HSL on 19 Mar 2019.

Industrial Relations

56. The industrial relations continue to remain cordialand harmonious. Your Company’s workmen, staff andOfficers are its core strength. The synergy of workingtogether has helped significantly to improve theproductivity and improvement in delivery timelines.

Morale & Motivation

57. During the year under review, following measureswere taken to improve the morale & motivation amongthe workforce:

(a) The term of employment of 409 nos L&M seriesstaff and workmen engaged by HSL was changed andthey are appointed as Fixed Tenure Employees for aperiod of three years w.e.f 01 Apr 2018. The pay of theseemployees are fixed at minimum of basic pay of equivalentgrades of WR1/WR2 on par with the permanentemployees along with allowances like DearnessAllowance, House Rent Allowance, and Transportallowance.

(b) In order to boost morale of the employees, PayRevision of Officers w.e.f 01 Apr 2018 has beenconsidered by the Board and same was submitted to theMinistry for approval. The wage revision of Staff &Workmen w.e.f 01 Apr 2018 is also under activeconsideration and same is likely to be completed in thecurrent fiscal.

(c) Various Junior and Senior level Officers werepromoted during the year under Career Promotion Plan.

(d) Despite financial constraints, one installment ofwage revision arrear was paid. With this, 60% of theoutstanding wage arrears have been cleared. Furtherleave encashment dues of the retired employees whohave retired upto Mar 2015 have been paid. The total cashoutgo was Rs 19.95 Cr during the year 2018-19.

(e) 77th Foundation Day and Founders’ Day of HSL wascelebrated to commemorate the Foundation of Shipyardand give tribute to the Founder of Shipyard Shri. SethWalchand Hirachand.

Welfare Activities

58. Various welfare measure were taken by theCompany to boost the morale of employees and to imbuea sense of belongingness to the organization, which wouldin turn help the company to achieve its targets. Some ofthe welfare measures taken during the year under revieware:

(a) The facilities of the “Coffee Castle” were revampedwith an air conditioned enclosure and with new furniture.

(b) D Type quarters were renovated with state of theart amenities and to eligible Staff & workmen.

(c) The family clinic inside the Colony was renovatedat par with a modern Medical Clinic with all requiredmedical equipment to meet any emergency.

Celebration of Founder's Day at HSL

Renovated Family Clinic at Shipyard Township

(d) The Officer’s cafeteria was renovated and renamedas “OCEANA”.

National Day Celebrations

59. 72th Independence Day, 70th Republic Day and BirthAnniversary of the father of the nation on 02 Oct 2018

Celebration of 70th Republic Day



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were observed in HSL with pride, which was well attendedby shipyard personnel as well as by the children of theschool/ colleges in our colony. Cultural programs werealso organized by the HS recreation Club on theseoccasions.

Training & Skill Development

60. HSL imparts training to a large number of ITIApprentices, Graduate Engineers and Diploma holderswith a view to help them improve skills & employability.The strength of existing apprentices is around 4.21% ofthe total manpower as against the required minimum2.5%.

61. 21 ITI Apprentices, 27 Graduate Engineers and 14Technical (Diploma) holders were imparted training indesignated trades during the year and successfullyreceived Apprentice Certificates from Board ofApprenticeship Training (BOAT), Southern Region,Chennai. Your Company further extended training to 1555students under self- sponsored industrial training program.

62. Apart from them, your Company also extendsIndustrial Training for Professionals Courses such asCompany Secretary and Cost Accountancy courses underskill development program.

63. Training calendar is designed to impart training toofficers, staff & workmen of different levels.107th and 108th

AITT examinations were also held in Training department.

Gender Cell

64. In pursuance of the instructions of the Governmentof India, a “Gender Budgeting & Women in Public SectorCell” has been constituted. The cell comprises of fourwomen officers for effective implementation of generaldevelopment program for women employees such astraining, advancement of skills and provision of welfareamenities at work place etc and also to enhance theeffectiveness of women employees in their employment,career management and overall personality development.There are presently 68 women employees in the yard.HSL has conducted a workshop on cancer awareness bya specialist Doctor from Mahatma Gandhi Cancer Hospitaland Research Institute for women employees.

Prohibition of Sexual Harassment of Women atWorkplace

65. A committee on prohibition of sexual harassmentof women at workplace has been constituted comprisingsix members headed by Smt M Sujata, GM (Finance) asthe head of the complaints committee. The committee

meets once in a quarter to review implementation of theprovisions under the Sexual harassment of women atworkplace (Prevention, Prohibitions and Redressal) Act,2013. The committee also comprises of Smt SwarnaKumari, Secretary, Mahila Action as third Party externalmember. During the year, no complaint was received withrespect to Sexual Harassment.

66. Further, an awareness program was conducted inHSL for officers on prohibition of sexual harassment ofwomen at workplace.

Medical Benefits

67. HSL runs a First Aid Centre in the yard which worksfrom 7 AM to 10 PM and a dispensary at HSL Townshipwhich works round the clock. Outpatient treatmentfacilities are also extended through a panel of doctors.There are eight referral hospitals, which are used for in-patient treatment of employees and the yard pays medicalbills directly to these hospitals for their services. Theemployees and their dependents are covered under theMedical Reimbursement scheme. During the year 2018-19 an amount of Rs 4.30 Cr was spent towards medicaltreatment of employees and their dependents.

68. Statutory Medical checkups were carried out for theemployees from time to time. Retired employees and theirspouses are being issued with Medical Identity Cards toavail concessional charges for medical checkups andtests.

‘Rajbhasha’

69. Official Language Implementation Committeemeetings and Hindi Workshops were being held regularly.Training in usage of Hindi & Hindi typing is ongoingprocess under the Hindi Teaching Scheme promulgatedby Ministry of Home Affairs. In order to encourageemployees to participate in such training classes,monetary awards are granted to successful employeeswho pass such exams.

70. During the year, 80 employees participated in HindiWorkshops. In order to ensure compliance with Section3 (3) of Official Language Act 1963 and Official LanguageRule 1976 of Government of India and to encourage theuse of Hindi, an inter-departmental Monthly IncentiveScheme is in existence.

71. The Company’s Annual Report and MoU wereprepared in bilingual form. To inculcate reading of HindiBooks a separate Hindi Library has been established.Hindi Classes are conducted for employees for a period



of 05 months. On successful passing of the examconducted after classes, an Increment is awarded for aperiod of 12 months.

72. Hindi Fortnight was observed during 01-14 Sep2018 during which various Hindi competitions wereorganized and cash awards were presented to victoriousemployees.

Implementation of Right to Information Act, 2005

73. The yard is in full compliance with the RTI Act, 2005.A RTI portal in the Company’s website is being maintained.

74. Necessary information as per the provisions of RTIAct 2005 are being furnished to information seekersregularly. During the year 2018-19, your Companyreceived 55 applications (directly and through MoD) andappeals. All of them have been disposed off as per theprovisions of the Act. HSL is aligned to RTI web portalthrough which applications can be filled and appeal online.

Corporate Governance Report

75. The number of Board meetings and the attendanceof Directors in the meetings, change of Directors and theirremuneration are enumerated in the CorporateGovernance Report. The Report on CorporateGovernance and Compliance Certificate forming part ofBoard’s Report are placed at Annexure-1 & 1Arespectively.

Management Discussion and Analysis

76. A report on Management Discussion and Analysisforming part of Board’s Report is placed at Annexure-2.


77. As per DPE guidelines and Companies Act 2013,considering average net profit for the immediatelypreceding three financial years, your shipyard hasearmarked Rs 63 lakhs as CSR Budget i.e. 2% of theaverage net profit of preceding three years. An annualreport is placed at Annexure - 3

78. During the Year 2018-19, an amount of Rs.3.36lakhs lakhs could be spent towards various CSR relatedactivities. The following activities have been undertaken:

(a) Support to various Educational Institutions: YourCompany has provided free electricity and water to thesix educational institutions functioning under GandhigramEducation Society (GES) for the benefit of the studentsof surrounding areas.

(b) Free Blood Donation Camp on 02 Mar 2019: YourCompany has organized a free Blood Donation Camp on02 Mar 2019 in HSL Colony wherein majority of HSLemployees participated to donate their blood.

(c) Free Medical Camp on 24 Mar 2019: Your Companyhas organized free medical camp under CSR initiative,on 24 Mar 2019 at Gangavaram village, Visakhapatnamfor the benefit of underprivileged people. Nearly 1000People of that village benefited from this camp by utilizingthe services of specialist doctors in the field of Gynecology,ENT, Orthopedic, Pediatric and general medicine fromrenowned hospitals in the city. Senior Officers, membersof the CSR Committee, doctors and paramedical staff andHSL Rovers extended their services for this event.

Free Medical Camp at Gangavaram Village on 24 Mar 2019

79. The yard could not spend the entire budget of Rs63 lakhs due to payment of legacy liabilities of Rs 69.32Cr to Essar Oil Ltd., in view of the Court Judgement andoutstanding employee dues such as wage revision arrearsand leave encashment arrears to retired employees ofRs 19.95 Cr the year under review. Therefore, the yardcould not spend the budgeted amount. The company iscommitted to CSR activities and efforts would made tospend the budgeted amount for the FY 2019-20 in thefinancial year 2019-20 as per the provisions of the Section135 and Scheduled VII of the Companies Act, 2013.

80. Further, in accordance with the guidelines issuedby DPE regarding adoption of Aspirational Districts, HSLhas decided to adopt Vizianagaram district of AndhraPradesh State as Aspirational District.

Activities of Vigilance Department

81. Vigilance department in HSL functions as anextended arm of Central Vigilance Commission andassists C&MD in vigilance related matters. During the year,Vigilance Awareness Week was observed from 29 Oct



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2018 to 03 Nov 2018, in order to emphasize theimportance of enhanced probity and to spread awarenessagainst corruption. During the awareness week, a seminaron the theme of the year “Eradicate Corruption-Build aNew India” was conducted. Shri R A Chandrasekhar, IPS,Joint Director, SIB, Vijayawada graced the seminar asthe Chief Guest and delivered a key note lecture on thetheme. Essay writing, slogan writing and online quizcompetitions were held for employees and painting &elocution competition were conducted for HS DegreeCollege students and prizes were distributed to thewinners. The department is conducting regular surprisechecks and suggesting system improvement. Besidesthis, 04 nos of CTE type reports on various aspects and03 system improvement reports were submitted.

Material changes between the end of the FinancialYear and date of this report

82. There has been no material change between theend of the Financial Year and date of this report.

Fixed Deposits

83. Your Company has not accepted any fixed depositsand as such no amount of principal or interest wasoutstanding as on the date of Balance Sheet.

Subsidiaries & Associates

84. Your Company has no Subsidiary or Associatecompany or Undertaking during the year under review.

Particulars of Employees

85. During the year under review, no employeesreceived remuneration of Rs.102 Lakhs or more perannum. Hence, information as required under Section 197(12) of the Companies Act, 2013, read with rule 5(2) ofthe Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014, is ‘NIL’.

Significant & Material Orders

86. During the year under review, there are nosignificant and material orders passed by the regulatorsor courts or tribunals impacting the going concern statusand Company’s operation in future.

Extracts of Annual Return

87. Pursuant to Section 92(3) of the Companies Act2013 read with rule 12(1) of the Companies (Management& Administration) Rules 2014, the extracts of AnnualReturn is placed at Annexure-4.

Contract with Related Parties

88. The Information required to be disclosed underSection 134(3) (h) of Companies Act 2013 is Nil for theFinancial Year 2018-19. Therefore, Form AOC -2 is notattached with the Board’s Report as required underSection 134(3)(h) of Companies Act 2013 read with Rule8(2) of Companies (Accounts) Rules 2014.

Reservation of Posts for SCs/STs

89. Your Company has complied with all Govt.directives with regard to reservation of posts for SC/ST/OBC. Details of recruitments, strength and vacancyposition as on 31 Mar 2019 are placed at Annexure 5, 6& 7 respectively.

Visit of Shri K. Ramulu, Hon'ble Member of National Commissionfor Schedule Caste on 01 Sep 2018

Reservation for Persons with Disabilities

90. The directives of the Government of India withregard to Reservation for Persons with Disabilities in allgroups i.e., A, B, C and D are being complied with. Presentpercentage of Persons with Disabilities among employeesis 4.36% against required 4%.

91. Your Company extends all the relaxations/concessions to the employees with disabilities as per theGovt. directives received from time to time. Double thetransport allowance of Rs 1200/- p.m against the normalTransport allowance i.e. Rs 600/-is being paid to Blind,orthopedically handicapped with the disability of lowerextremities and deaf & dumb staff & workmen. Officerswith the same disabilities are extended with SpecialTransport Allowance of Rs 500 P.M in addition to theirregular Transport Allowance.

Conservation of Energy

92. Information required under Section 134(3)(m) ofCompanies Act 2013 read with rule no 8 (3) read with the



Companies (Accounts) Rules 2014 pertaining toconservation of energy, technology absorption and foreignearning and outgo is placed at Annexure-8

Statutory Auditors

93. M/s G R Kumar & Co, Visakhapatnam had beenappointed as Statutory Auditors of the Company for thefinancial year 2018-19 by the Comptroller & AuditorGeneral of India. The fees payable to Statutory Auditorsfor the year 2018-19 was Rs. 2,50,000/- exclusive of outof pocket expenses and GST.

Cost Auditors

94. CMA U Prakash, Cost Accountants,Visakhapatnam, had been appointed as Cost Auditors forthe year 2018-19 in terms of Section 148 of CompaniesAct, 2013, read with the Companies (Cost Records andAudit) Rules, 2014 to prepare and file necessary ‘CostAudit Report’ with a remuneration of Rs 65000/-exclusive of GST. Further, as required under the saidRules, the remuneration payable to the Cost Auditor hadbeen ratified in 66th Annual General Meeting by themembers of the Company.

Directors’ Responsibility Statement

95. Pursuant to the requirement under section 134 (5)of the Companies Act 2013 with respect to the DirectorsResponsibility Statement, following is hereby confirmed:-

(a) In the preparation of the annual accounts, theapplicable accounting standards had been followed alongwith proper explanation relating to material departures;

(b) The directors had selected such accounting policiesand applied them consistently and made judgments andestimates that are reasonable and prudent so as to givea true and fair view of the state of affairs of the companyas on 31 Mar 2019 and of the profit of the company forthat period;

(c) The directors had taken proper and sufficient carefor the maintenance of adequate accounting records inaccordance with the provision of Companies Act 2013 forsafeguarding the assets of the Company and forpreventing and detecting fraud and other irregularities;

(d) The directors had prepared the annual accountsongoing concern basis; and

(e) The directors had devised proper systems toensure compliance with the provisions of all applicablelaws and that such systems were adequate and operatingeffectively.

Acknowledgements

96. We acknowledge with gratitude, the valuableguidance and support received from the Department ofDefence Production, Ministry of Defence and Departmentof Public Enterprises, Ministry of Heavy Industries. YourDirectors are particularly thankful to the valued customersi.e. Indian Navy and Coast Guard, Dredging Corporationof India, Oil & Natural Gas Corporation Limited,Visakhapatnam Port Trust, Kandla Port Trust, ShippingCorporation of India and various vendors. Your Directorsalso express their gratitude to Controller of DefenceAccounts (Navy), Government of Andhra Pradesh,Departments of Customs, Income Tax, Goods & ServiceTax Deparments for their kind support. The Directors alsoacknowledge their gratitude to the clients and allClassification Societies, who have ensured quality andadherence to the standards. Your Directors also place onrecord their appreciation for the assistance extended bythe Company’s bankers and valuable advice rendered andco-operation extended by the Internal Auditors, StatutoryAuditors and the Officers & Staff of the offices of PrincipalDirector of Commercial Audit & Ex-Officio Member AuditBoard, Bangalore and their Headquarters. The Boardplaces on record its appreciation for valuable contributionmade by our employees at all levels.

FOR AND ON BEHALF OFTHE BOARD OF DIRECTORS

(L V Sarat Babu)Place: Visakhapatnam Rear Admiral (Retd)Date: 26 Jul 2019 Chairman & Managing Director



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Annexure – 1 to the Board’s Report

REPORT ON CORPORATE GOVERNANCE

As per the guidelines issued by the Department of PublicEnterprises, Government of India, a report on complianceof the provisions on Corporate Governance is enumeratedin succeeding paragraphs.

2. Philosophy of Corporate Governance:Hindustan Shipyard Limited constantly endeavors to adoptand maintain highest standards of ethics in all spheres ofits business activities. The company firmly believes thatits business role is based on adherence to fundamentalprinciples of corporate governance like honesty, integrity,accountability, adequate disclosures, legal & statutorycompliances, and to protect, promote and safeguard theinterests of all its stakeholders. It also strives to carry out

its business obligations with good corporate values, dulydischarging its duties for maximum level of transparencyin decision making to avoid conflicts of interests. It alsoaccords due importance to adherence to the adoptedcorporate values and objectives and discharging its socialresponsibilities as a responsible corporate citizen.

Board of Directors

3. Composition of the Board: The Board of Directorsduring the Financial Year 2018-19, comprised 07 Membersviz. 05 Whole-time Directors (including the Chairman andManaging Director), 01 Part time Official Director(Government nominee Director) and 01 Part time NonOfficial Director (Independent Director).

4. The details of the members of the Board during the financial year ended on 31 Mar 19 are as under:

Name of the Directors Financial Year Category of Directorship No. of Other2018-19 Directorship


RAdm L V Sarat Babu, NMIN(Retd) 01 Apr 18 to Chairman &31 Mar 19 Managing Director Nil

Whole Time Directors

Cmde A S Mitra, IN (Retd.) 01 Apr 18 to Director14 Feb 19 (Shipbuilding) Nil

Cmde PHM Salih, IN (Retd.) 01 Apr 18 to Director15 May 18 (Corporate Plg. & Personnel) Nil

Cmde Hemant Khatri, IN (Retd) 01 Apr 18 to Director31 Mar 19 (Strategic Project) Nil

Cdr J P Gupta, IN (Retd) 29 Nov 18 to Director31 Mar 19 (Corporate Plg & Personnel) Nil

Shri S V Rambabu 12 Dec 18 to Director31 Mar 19 (Finance & Commercial) Nil

Government Nominee Director

Shri Pradeep Gupta 01 Jun 18 to Govt. Nominee06 Dec 18 Director Nil

Shri Shrish Kumar 06 Dec 18 to Govt. Nominee31 Mar 19 Director Nil

Independent Director

Dr Bijoy Kumar Sahoo 01 Apr 18 to Independent31 Mar 19 Director 7

Changes in Board of Directors

5. During the year 2018 -19, following directors havebeen appointed by the President of India:

(a) Shri Pradeep Gupta, Officer on Special Duty andJoint Secretary, Department of Defence Productionwas appointed as Government Nominee Director



vide MoD letter 8 (80)/2015-D(Coord/DDP) dated30 May 2018 and his appointment has beeneffected from 01 Jun 2018 (the date of allotment ofDIN in accordance with Section 152 of theCompanies Act 2013).

(b) Cdr J P Gupta, IN (Retd) General Manager(Production) of HSL was appointed as Director(Corporate Planning & Personnel) by President ofIndia on the Board vide Ministry of Defence letterNo 3/1(1)/2018/D(NS) dated 28 Nov 2018. Cdr J PGupta, IN (Retd) assumed the charge as Director(Corporate Planning & Personnel) w.e.f 29 Nov2018.

(c) Dr Bijoy Kumar Sahoo, Part time non officialDirector on the Board of HSL has been reappointedas Part time Non Official Director on the Board ofHindustan Shipyard Limited for a period of one yearfrom the date of completion of his existing tenurei.e. 22 Nov 2018 in HSL or until further orderswhichever is earlier vide MoD Letter 11(57)/2017/MDN/D(NS) dated 22 November 2018.

(d) Shri Shrish Kumar, Officer on Special Duty,Department of Defence Production, Ministry ofDefence has been appointed as GovernmentNominee Director vide letter 8 (80)/2015-D(Coord/DDP) dated 06 Dec 2018 in place of Shri PradeepGupta.

(e) Shri S V Rambabu, Deputy General Manager(Finance), Rastriya Ispat Nigam Limited,Visakhapatnam was appointed as Director (Finance& Commercial) by President of India on the Boardvide Ministry of Defence letter No 2(2)/2016/HSL/D(NS-II) dated 28 Nov 2018. Shri S V Rambabuassumed the Charge as Director (Finance &Commercial) on 12 Dec 2018.

6. Brief Profiles of the above mentioned directorsare as under:

(a) Pradeep Gupta: Shri Pradeep Gupta has done BE(Hons.) in Electrical Engineering from RECAllahbad (Now NIT Allahbad) and Post GraduateDiploma in Business Management from MDI,Gurgaon. He joined Indian Ordnance FactoryService (IOFS) in November 1986. As a memberof IOFS, he started his career as Assistant worksmanager in the Ordnance Factories under Ministry

of Defence. During which, he has looked after theoperations & Plant engineering functions of theprocesses & manufacturing of conventionalweapons such as main battle tanks, artillery guns,specialized items for space crafts, missiles andother weapons. He has extensively visited weaponproduction facilities of Austria & Germany and wasalso awarded “Santu Shahaney Shield” for bestproduction manager in Ordnance FactoryOrganization. Subsequently, he was deputed toMinistry of Defence as Director and played a vitalrole in formulation of various policies such asDefence Capital Procurement Policy and DefenceRevenue Procurement Policy. Besides this he hasdealt with various IT & Cyber Security Policies atthe Ministry level. He has also served as Officer onSpecial Duty (OSD) to Hon’ble Defence Minister,External Affairs Minister and Finance Minister.During his tenure as OSD to aforesaid CabinetMinisters, he was responsible for the Group ofMinisters (GoM), Empowered Group of Ministers(EGoM) and other miscellaneous committees whichdeal with the issues like RTI Act, NREGA etc andheaded by the aforesaid Cabinet Ministers. Besidesthis he was also served as Private Secretary toPresident of India for 03 years starting from July2012 and dealt with subjects like Union GovtFormation, Union Cabinet Decisions, mattersrelated to Governor of the States etc. He has alsoparticipated in various Bilateral & multilateralmeetings like IMF, World Bank and Indo-USFinancial Partnership, ASEAN, EU, CHOGM,SAARC etc. He has also served as Joint Secretary(Border Management) at Ministry of Home Affairsand was responsible for issues related to landborders and coastal borders

(b) Cdr J P Gupta, IN (Retd): Cdr Jagdish PrasadGupta, IN (Retd.) has done Post-Graduation inNaval Architecture and Nuclear Technology. He hasmore than 30 years of experience in construction& repairs of Ships & Submarine. He took prematureretirement from Indian Navy and joined SubmarineDivision of Hindustan Shipyard Limited in Aug 2011.As the head of Submarine Division, he oversawthe ongoing Medium Repairs & Modernisation ofINS Sindhukirti, which had been languishing sinceJan 2006, but leading it to successful completion



27

in Jun 2015. Thereafter he was transferred toProduction Division in Jan 2017 as GM(Production), where he handled various ongingprojects viz. NTRO OSS, IN & KPT Tugs amongothers.

(c) Dr Bijoy Kumar Sahoo: Dr Bijoy Kumar Sahoo isa Fellow Member of Institute of CharteredAccountants of India and qualified Cost Accountantfrom ICWAI, Kolkata. In addition to this, Dr Sahoo,has done LLB from University of Law, MBA fromAll India Management Association and Phd inCommerce from Utkal University. Dr Sahoo startedhis career as a practicing Chartered Accountant inSRB & Associates in the year 1985 and in his careerof 30 years, he has handled various major auditassignments which include Statutory Audit ofNALCO, Bhubaneswar, Andhra Bank, Hyderabad,various types of Audit in Banking sector startingfrom Central Statutory Audit, Part-C audit, BranchAudit , Current Audit, Revenue Audit etc. Dr Sahoois a devoted educationist and believes in “We canbuild a better India through Education”. He is thefounder and Chairman of SAI International Schoolwhich was ranked as 6th Best School in the Countryby Education World India School Rankings 2015.In addition to this, he is the founder director of JSSSoftware Technology Park and JSS Group. He ispresently serving as Non official Part time Directoron the Board of KIOCL Limited, Bangalore andAllahabad Bank. Apart from this he is a Member ofManagement Board of Central Electricity SupplyUtility (CESU), Odisha and Shri Jagannath TempleManaging Committee, Puri.

(d) Shri Shrish Kumar: Shri Shrish Kumar has doneB. Tech in Mechanical Engineering from IIT Kanpur.He joined Indian Ordnance Factory Service (IOFS)in the year 1990. As a member of IOFS, he workedin Ammunition Division Factories at Aruvankedu(Tamil Nadu), Khamria (Jabalpur), Pune,Chandrapur (Maharashtra) till 2012. During thisperiod he was mainly assigned with Production,Procurement and Quality of ammunitions. He hasalso attended Management Program forTechnologist for a duration of Six Months at IIM,Bangalore in 1999. During 2012-17, through centralstaffing scheme on deputation, he worked in UIDAI,New Delhi. During this period he looked after testing

& certification through testing agency for enrolmentoperators & Supervisors and revamping uidai.gov.inwebsite to make it resident centered. He has alsovisited to various foreign countries such as France,Belgium, London, Russia, Rio (Brazil) on officialassignments. Before joining DDP/MoD as Officeron Special Duty in Oct 2018, he was posted asAdditional General Manager of OFB, Kanpur.

(e) Shri S V Rambabu: Shri S V Rambabu has doneB.Tech in Mechanical Engineering from JawaharlalNehru Technological University and is a qualifiedCost Accountant from Institute of Cost Accountantsof India. He has also done Post Graduate Diplomain Compute Application from Pondichery Univeristy.In a career spanning almost three decades in anIntegrated Steel Plant, he was associated with the03 MTPA Plant from the Commissioning stage toits operation and further expansion to 6.3 MTPAand 7.3 MTPA. He holds a versatile experience inCorporate Accounting, Auditing, Cost Management,Budgeting, Tax Management, Marketing financeetc.

7. During the year 2018 -19, following directors havebeen ceased to be a Director due to superannuation/resignation/ death.

(a) Ms Surina Rajan, Govt. Nominee Director has beenceased to be a Government Nominee Directorpursuant to Section 167 of the Companies Act 2013w.e.f 01 Apr 2018. Necessary returns in this regardhave been filed with MCA.

(b) Cmde P H M Salih has resigned from the post ofDirector (Corporate Planning & Personnel) due tounavoidable personal requirements and has beenrelived from the duties w.e.f 15 May 2018 by theCompetent Authority vide MoD Letter 2(19)/2014/HSL/D(NS) dated 10th May 2018.

(c) Cmde A S Mitra, IN (Retd), Director (Shipbuilding)passed away on 14 Feb 2019 due to sudden cardiacarrest.

(d) Shri Pradeep Gupta has been ceased to be a Govt.Nominee Director vide MoD Letter dated 06 Dec2018 and Shri Shrish Kumar has been appointedin lieu.



8. The Board of Directors wishes to place on recordthe appreciation of the services rendered by the outgoingDirectors.

Changes in Key Managerial Personnel

9. Smt M Sujata, General Manager (Finance) who wasappointed as Chief Financial Officer in 399th Meeting ofthe Board till appointment of Director (Finance &Commercial) ceased to be Chief Financial Officer w.e.f12 Dec 2018 upon appointment of Director (Finance &Commercial)

10. Shri S V Rambabu, Director (Finance &Commercial) has been appointed as Chief FinancialOfficer w.e.f 12 Dec 2018.

11. The Board of Directors in its 403rd Meeting hasplaced its appreciation on record for the services renderedby Smt M Sujata during her tenure as Chief FinancialOfficer. She continues as General Manager (Finance) withHSL.

Vacancy of Independent Directors

12. As per DPE guidelines on Corporate Governance,there should be three Independent Directors on the Boardof Directors of HSL. Out of the required three IndependentDirectors, presently, only one Independent Director is onthe Board. The only Independent Director i.e. Dr BijoyKumar Sahoo is going to complete his tenure on 22 Nov2019. Thereafter, there will be no Independent Directoron the Board of Directors.

13. Ministry of Defence has been apprised regularlyabout the situation and requested to appoint the requirednumber of Independent Directors on the Board. Therefore,present composition of the Board of Directors is not inline with the DPE guidelines.

Meetings of Board of Directors

14. The Board meets at regular intervals during whichthe company affairs are discussed and decisions aretaken. During the financial year 2018-19, four BoardMeetings were held on 16 Jul 2018, 31 Aug 2018, 28 Dec2018 and 29 Mar 2019. The intervening gap between anytwo meetings was within the period prescribed by theCompanies Act 2013.

15. Directors Attendance. Details of Directorsattendance at the Board Meetings and Annual GeneralMeeting are given below.

Name of the Directors No. of meetings AttendanceHeld during Attended at lastthe tenure of AGM

Directors

RAdm L V S Babu, 4 4 YesNM (Retd)

Cmde A S Mitra 4 4 Yes

Cmde P H M Salih 0 0 NA

Cmde Hemant Khatri 4 4 Yes

Cdr J P Gupta 2 2 NA

Shri S V Rambabu 2 2 NA

Shri Pradeep Gupta 2 2 Yes

Shri Shrish Kumar 2 2 No

Dr Bijoy Kumar Sahoo 4 3 Yes

16. Procedure for conducting Board Meetings.Board Meetings are held at least once in every quarter,and more often if considered necessary, focusing onbusiness requirements. Every Board meeting is convenedthrough proper and appropriate advance notice to theBoard Members after obtaining approval from Chairman& Managing Director. Detailed agenda, managementreports and other relevant documents are generallycirculated well in advance to the members of the Board inorder to have meaningful, informed and focused decisionsat the meeting. To address specific urgent needs, Boardmeetings are also called at short notice and sometimesconsidering business exigencies, Resolutions are alsopassed through circulation which is confirmed by theBoard members in its very next meeting.

17. In general, agenda papers are prepared by theconcerned officials, concurred by the Functional Directorsand put up for approval of Chairman & Managing Director.Duly approved Board notes and agenda papers arecirculated among the Board members by the CompanySecretary.

18. The Board and its members have complete accessto all information of the company. The Board is also freeto recommend inclusion of any matter in agenda fordiscussion. If necessary, senior management is also calledto provide additional inputs to the items being discussedby the Board / committee.



29

19. The Company has complied the provisions ofSecretarial Standards 1 & 2 in accordance with the Section118 (10) of the Companies Act 2013.

20. Audit Committee. The Audit Committee of theBoard comprises three members viz. IndependentDirector, Government nominee Director and One Whole– Time Director. The Audit Committee is being chaired byan Independent Director.

21. The following were the Audit Committee Membersduring the Financial Year 2018-19.

Members

(a) Dr Bijoy Kumar Sahoo ChairmanIndependent Director

(b) Shri Pradeep Gupta MemberGovt. Nominee Director(From 14 Jun 18 to 06 Dec 18)

(c) Shri Shrish Kumar MemberGovt. Nominee Director(From 17 Dec 18 to 28 Dec 18)

(d) Cmde A S Mitra, IN (Retd) MemberDirector (Shipbuilding)(From 14 Jun 18 to 12 Dec 18)

(e) Cmde Hemant Khatri (Retd) MemberDirector (Strategic Project)(From 28 Dec 18)

(f) Cdr J P Gupta, IN (Retd) MemberDirector (Corporate Planning & Personnel)(From 17 Dec 18)

(g) Cmde PHM Salih, IN (Retd) MemberDirector (Corporate Planning & Personnel)(Upto 15 May 18)

Permanent Invitee

(h) Shri S V RambabuDirector (Finance & Commercial)and Chief Financial Officer(From 17 Dec 18)

22. Changes in Audit Committee: The followingchanges have been taken place in the Audit Committee:

(a) Cmde P H M Salih, IN (Retd) ceased to be amember w.e.f 15 May 2018 upon reliving from thepost of Director (CP & P).

(b) Shri Pradeep Gupta inducted as a member on 14Jun 2018 and ceased to be a member w.e.f 06 Dec2018.

(c) Shri Shrish Kumar inducted as a member on 12Dec 2018 and ceased to be a member w.e.f 28Dec 2018

(d) Cmde A S Mitra was inducted as a member w.e.f14 Jun 2018 and ceased to be a member of AuditCommittee w.e.f 12 Dec 2018.

(e) Cmde Hemant Khatri was inducted as a memberof the Audit Committee w.e.f 28 Dec 2018.

(f) Cdr J P Gupta, IN (Retd) was inducted as a memberof the Audit Committee w.e.f 12 Dec 2018.

(g) Shri S V Rambabu was appointed as PermanentInvitee to the Audit Committee w.e.f 12 Dec 2018.

23. The terms of reference of the audit committee areas specified in Section 177 of the Companies Act, 2013and the guidelines issued by the Department of PublicEnterprises. The primary function of the committee is toassist the Board of Directors to fulfill its responsibilitiesthrough review of financial reports, internal controlsystems for finance, accounting and legal compliance bythe management and Board.

24. The Audit Committee reviews Internal AuditReports, meets Statutory Auditors and Internal Auditorsand discusses their findings, suggestions and otherrelated matters and reviews the half yearly and annualfinancial statements before their submissions to the Board.

25. The Chairman of the Committee apprises the Boardregarding observations of the Audit Committee during theBoard meeting. The minutes of the Audit Committeemeetings are placed before the Board.

26. During the financial year 2018-19, three meetingsof the Audit Committee were held on 16 Jul 2018, 31 Aug2018 and 28 Dec 2018.

27. The attendance of the members of the AuditCommittee during the financial year 2018-19 is givenbelow.



Name of the member No of meeting

Held during Attendedthe tenure

Dr Bijoy Kumar Sahoo 3 3

Shri Pradeep Gupta 2 2

Shri Shrish Kumar 1 0

Cmde A S Mitra 2 2

Cmde Hemant Khtari 0 0

Cmde J P Gupta 1 1

Cmde P H M Salih 0 0

28. Procurement Committee: In order to obviateprocedural delays in connection with procurement of highvalue equipment, a Sub-committee of the Board withvested financial power was constituted in the 366th Boardmeeting held on 21 Feb 2012. During the FY 2018-19,the following were members of the Procurement SubCommittee.

(a) Rear Admiral L V S Babu, ChairmanNM (Retd.)Chairman & Managing Director

(b) Shri Pradeep Gupta, MemberPart time Official Director(From 16 Jul 18 to 06 Dec 2018)

(c) Shri S V RambabuDirector (Finance & Commercial)(From 28 Dec 2018)

(d) Concerned Functional Director Member

29. The terms of reference of the committee is asunder:

The Procurement Committee has powers:

(a) To approve proposals for procurements ofmaterials, equipment, tools, stores & spares,imports, approvals of works, sub-contracts, andfacility hire for various Shipbuilding, Ship Repairsand Submarine projects of value above Rs 25 Crand up to the value of Rs 50 Cr.

(b) To approve proposals for Procurement of assetsand Capital Expenditure of value above Rs 5 Crand upto Rs 20 Cr.

(c) To recommend the proposals for placement of orderon nomination basis which require approval of theBoard”

30. During the financial year 2018-19, two meetings ofthe Procurement Committee were held on 31 Aug 2018and 03 Jan 2019. The attendance details of the membersin the said meetings are as under:

Name of the member No of meeting

Held during Attendedthe tenure

Rear AdmiralL V Sarat Babu 2 2

Shri Pradeep Gupta 1 1

Cmde A S Mitra 2 2

Shri S V Rambabu 1 1

31. Project Review Sub Committee. In order to reviewimportant Govt. Sanctioned Projects and executed by theCompany, a Project Review Sub Committee (PRSC) ofthe Board of Director was constituted in the 372nd Meetingof Board of Directors held on 14 Feb 13 which wassubsequently reconstituted in various meeting. The latestreconstitution was done in 401st Meeting held on 16 Jul2018. No meeting was held during the year under review.

32. The PRSC comprised following Directors as itsmembers:

(a) Shri Pradeep Gupta ChairmanPart time official Director

(b) Director (Shipbuilding) Member

(c) Director (Strategic Projects) Member

33. The terms of reference of the Committee are asfollows:

(a) Detailed Review of technical and financial progressachieved with reference to the milestones fixed andscope and specifications prescribed.



31

(b) Review adherence to contractual provisions andapproved procurement policy of the company inimportant cases of procurement.

(c) To identify deficiencies in the extant procedures andto make suggestions for improvement.

34. Human Resource Committee. In order to addressHR related issues that require the attention of the Board,the Board in its 379th Meeting 02 Dec 2013 constitutedthe Human Resource Committee. The Committee wassubsequently reconstituted in various meeting. The latestreconstitution was done in 401st Meeting held on 16 Jul2018. During the financial year the following weremembers of HR Committee:

(a) Shri Pradeep Gupta ChairmanPart time Official Director

(b) Director (Shipbuilding) Member

(c) Director (Strategic Project) Member


(a) To review and recommend the proposals towardsPay Revision of officers, staff & workmen inaccordance with the guidelines issued byDepartment of Public Enterprises andAdministrative Ministry and revision in payment ofallowances/benefits to the employees.

(b) To examine the proposals related to other HRrelated issues like promotion policy of the company,welfare measures for employees, IR issues etc.and give its recommendations.

(c) To review and recommend implementation of HRPerspective Plan in alignment with company’sobjective and future business growth for approvalof the Board

36. During the Financial Year 2018-19, no meeting ofthe Human Resource Committee was held. In view of theinadequacy of Independent Directors on the Board, theBoard in its 403rd meeting held on 28 Dec 2018 decidedto discontinue the HR Committee of the Board tillappointment of adequate Independent Directors on theBoard and till then all HR related proposals are to bedirectly placed before the Board for approval.

37. Corporate Social Responsibility andSustainability Sub-Committee. In order to formulate theCSR & Sustainability Policy and review the activitiesundertaken, the Board in its 374th Meeting held on 17 May14 had constituted the CSR & Sustainability Committee.The Committee was subsequently reconstituted in variousmeeting. The latest reconstitution was done in 401st

Meeting held on 16 Jul 2018. The following are themembers of the committee.


(b) Director (Ship Building) Member



(a) Formulate and recommend to the Board, CorporateSocial Responsibility and Sustainable DevelopmentPolicy which shall indicate the activities to beundertaken by the Company.

(b) Recommend the amount of expenditure to beincurred on the activities referred in clause (a).

(c) Monitor the Corporate Social Responsibility andSustainable Development Policy of the Companyfrom time to time.

39. During the Financial year 2018-19, one meeting ofthe CSR & Sustainability Sub-Committee was held on 31Aug 2018 where all members were present.

40. Investment Committee. In order to take decisionson investment of idle and surplus funds, the Board in its404th Meeting held on 28 Mar 2019 have constituted theInvestment Committee with following members.

(a) Chairman & Managing Director Chairman

(b) Director Member(Finance & Commercial)


(d) Director Member(Corporate Planning & Personnel)

Permanent InviteeGM (Finance)

Secretary to the CommitteeCompany Secretary




(i) The Committee shall have the powers to invest upto Rs 200 Crores in a financial year with maturityup to one year. The Committee is also empoweredto take investment decisions which has maturitybeyond one year subject to ratification of the sameby the Board within 90 days from the date ofinvestment.

(ii) The Committee is also empowered to takeinvestment decisions upto a sum of Rs 500 Croreswhich has a maturity period upto 91 days.

(iii) The Investment of Surplus and/or idle funds shallbe made only in Public Sector Banks and exposurelimit for each Bank shall not be more than Rs.100Cr at a time.

(iv) The quorum of the committee shall be 03 memberswhich shall invariably include C&MD and Director(Finance & Commercial).

(v) The Committee shall take investment decisions inaccordance with the DPE OM No. FNO. DPE/18(1)/2012-Fin dated 08 May 2017 and subsequentguidelines as may be formulated by the Ministry inthis regard from time to time.

(vi) Minutes of the Investment Committee shall beplaced before the Board for Information.

42. During the Financial year 2018-19, one meeting ofthe Investment Committee was held on 30 Mar 2019where all members were present.

43. Evaluation of the Board and performance ofWhole-time Directors: Ministry of Corporate Affairs, videGazette Notification No. G.S.R 463 (E) dated 05 Jun 2016have exempted Section 134 (3)(p) to GovernmentCompanies where directors are evaluated by the Ministryof Central Government which is administratively in-chargeof the Company as per its own evaluation methodology.Since Hindustan Shipyard Limited is a wholly ownedGovernment of India undertaking under Department ofDefence Production of Ministry of Defence and that theperformance of Whole-time Directors are evaluated byDepartment of Defence Production, Ministry of Defence,no Separate Meeting of Independent Directors was heldduring the year 2018-19.

44. Pursuant to Section 149 (8) and Clause VII ofSchedule IV, the Independent Directors were to evaluatethe performance of Chairperson, Non IndependentDirectors on the Board, and the Board as a whole. SinceSection 134 (3) (p) is exempted to GovernmentCompanies, no separate Board Evaluation was done bythe Independent Directors.

45. Declaration by Independent Directors. TheCompany has received necessary declaration from theIndependent Director as on 31 Mar 2019 under Section149 (7) of the Companies Act 2013 that he/she meets thecriteria of independence laid down in Section 149 (6) ofthe Companies Act 2013.

46. Remuneration of Whole-time Directors. Theremuneration of Whole Time directors is fixed by theGovernment as the Company is a Government Companywithin the meaning of Sec 2 (45) of Companies Act, 2013.Your Company being a Central Public Sector Enterprise,the appointment, tenure and remuneration of Directorsare decided by the President of India. The Governmentcommunication appointing the Functional Directorsindicate the detailed terms and conditions of theirappointment including a provision for the applicability ofthe relevant rules of the Company. The details ofremuneration paid to the Functional Directors during 2018-19 are provided in extract of Annual Return annexed tothis report.

47. Remuneration to Part Time Directors. Part timeOfficial Directors are not eligible for sitting fees attendedby them. The part time Non-Official (Independent)Directors are paid sitting fees of Rs.2500/- for eachmeeting of the Board /Committees (s) of the Board andreimbursed actual expenditure to attend the meeting ofthe Board/Board Committee (s). Government NomineeDirectors are not paid any remuneration including sittingfee for attending Board / Committee meetings. Further,none of the part-time Directors had any pecuniaryrelationship or transactions with the Company during theyear.

48. Code of Business Conduct and Ethics. As perguidelines issued by Department of Public Enterprises,the company has formulated “Code of Business Conductand Ethics for Board Members and Senior Management”for better corporate governance and fair/ transparentpractices. A copy of the same has been circulated to allconcerned and also available on the website of the



33

Company. The Board members and senior managementpersonnel, to whom the said code is applicable, haveaffirmed compliance of the same for the year ended 31Mar 19.

49. General Meetings. No extra-ordinary GeneralMeeting was held during last three years. The details ofthe last three Annual General Meetings of the companyare given below.

AnnualGeneral Year Date Time LocationMeeting

64 2015-16 26.09.2016 12.00 P.M HSL Board Room,Visakhapatnam



50. Whistle Blower Policy. Your Company has in placea whistle blower policy with a view to establish amechanism for the employees to report to themanagement about their concerns on un-ethical behaviorcases of suspected fraud or violation of company’s generalguidelines to conduct and ethics. The whistle blowermechanism inter-alia contains a provision enabling anypersonnel to approach the chairman of the AuditCommittee in exceptional cases and no personnel hasbeen denied access to the Audit Committee the year underreview. The Whistle Blower Policy has been displayed onthe Website of the Company.

51. Risk Management Policy. The company hasformulated a comprehensive Risk Management Policyunder the title ‘Enterprise Risk Management Policyincluding Corruption Mitigation Plan’ in line with the DPEGuidelines on Corporate Governance for CPSEs to ensurethe integration and alignment of the risk managementsystem with the corporate and operational objectives. TheERM Team constituted for implementation of the policyhas been entrusted with the responsibility to identify andmonitor the risks associated with the business of theCompany and take mitigating actions for addressing thoserisks

52. Disclosures. During the year 2018-19, thecompany has not entered into any transactions with anyDirectors that may have potential conflict with the interest

of the company at large. The members of the Board, apartfrom receiving Director’s remuneration (whereverapplicable), do not have any material or pecuniaryrelationship or transaction with the company which injudgment of the Board may affect independence ofjudgment of the directors.

53. During the last three years, there has been noinstance of non-compliance by the company on any matterrelated to Companies Act, 2013 or any Industrial Laws.The Board periodically reviewed the compliance of lawsby the Company.

54. The guidelines issued by the Department of PublicEnterprises, Govt of India have been complied with.

55. The company has not incurred any expenditurewhich is not for the purpose of Business of the Company,nor has the Company incurred any expenditure which ispersonal in nature for the Board of Directors and topmanagement.

——————x——————

DECLARATION

As provided under the guidelines on CorporateGovernance for CPSEs 2010 issued by the Departmentof Public Enterprise, Government of India, it is herebydeclared that all Board members and Senior Managementpersonnel have affirmed compliance with the code ofconduct for Directors and Senior Management personnelof Hindustan Shipyard Limited for the year ended 31 Mar2019.

For Hindustan Shipyard Limited

Place: Visakhapatnam (L V Sarat Babu)Date: 26 Jul 2019 Rear Admiral, IN (Retd.)




35

Annexure – 2 to the Board’s Report

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Structure, Developments and outlook

1. Shipbuilding is a highly capital, labour andtechnology intensive industry which spin offs to otherindustries such as steel, engineering & mechanicalequipment, port infrastructure etc. The changes in theseindustries have a direct impact on the Shipbuildingindustry. Further, HSL predominantly caters to the needsof Indian Navy and Coast guard which is driven by thechanges in maritime security and operational readinessof country’s maritime security forces.

2. Indian Shipbuilding industry is of strategicimportance to the Indian economy and plays an importantrole in national security, employment generation,development of manufacturing and related ancillaryindustries. Due to this, Govt of India has set ambitiousplans for the Shipbuilding and Ship repair industry.Increase in FDI limit to 49%, abolition of FIPB, allowingforeign OEM to change their offset partners, opening uppublic sector facilities to the private parties are some ofthe measures taken by the Govt to promote IndianShipbuilding industry. The make in India policy of theGovernment has given a boost to the domestic Medium,Small and Micro enterprises. Besides this, theGovernment has simplified the Make-II policy which isnow part of the Defence Procurement policy.

3. The defence sector and industry outlook lookspositive in the coming years with Defence Budget for thefinancial year 2019-20 represents a growth of 7.93%compared to the previous year. The Government of India’sfocus on development of Inland and coastal waterwaysinfrastructure is an opportunity to be explored. Increasein categorization of acquisition programmes under makein India, Buy Indian and Indigenously Designed Developedand Manufactured (IDDM) gives lots of opportunities fordomestic orders. The Government’s strong focus in theShipbuilding and its initiative in coastal shipping and inlandwaterways, among others could give the much neededimpetus to the Indian Shipbuilding.

4. HSL is operating in a highly competitiveenvironment especially to defence shipbuilding or shiprepair orders where both PSU shipyards and privateshipyards are tough competitors. HSL has relooked itsbidding process and strengthened to gear up for thecompetition. In order to remain competitive in Indiandefence shipbuilding, Infrastructure and technology up

gradation is a major driver. Towards this, the yard isalready in the process of Infrastructure augmentation andTechnology up gradation. Some of the measures takenby the yard are augmentation of infrastructure for in housedesign and implementation of SAP ERP system withintegrated Production Lifecycle Management (PLM),adopting the standards of Industry 4.0 etc.

5. HSL has implemented ISO 9001:2015 QualityManagement System and presently is in the process ofimplementation of ISO 18001 OHSAS and ISO 14001Environmental Management System.

SWOT Analysis:

6. HSL identifies the following to be its Strength,Weakness, Opportunities and Threats

(a) Strengths

Ø Highly motivated employees

Ø Well planned and laid out shipyard enabling smoothwork flow

Ø Implementation of SAP ERP and Biometric system

Ø e-procurement and e-auction system

Ø High skilled work force and strong management

Ø Good infrastructure for shipbuilding facilitatingsimultaneous construction of several large andsmall ships.

Ø Strategically located with water depth of about 10m

Ø Capable to build all kinds of vessels up to 80,000DWT

Ø A modern “State of the Art” design center mannedby highly trained,experienced and competent NavalArchitects, Engineers and Draftsman

Ø Only shipyard on east coast for submarine repairs

Ø Large dry dock and wet basin with workshops forrepairs

(b) Weakness

Ø Negative Net-worth



Ø Contingent Liabilities

Ø High overheads

Ø working capital constraints

(c) Opportunities

Ø Growing maritime defence needs of the country

Ø Large scope for repairs

Ø Navy’s requirement for submarine repairs

Ø Indian Navy, Coast Guard and other maritimesecurity agencies have embarked on an ambitiousexpansion programme which will open newopportunities.

Ø Navy’s requirement for construction of strategicvessels

Ø Need for large special ships for intelligencegathering

Ø Make in India policy of government

Ø Growing export potential

(d) Threats

Ø Low profit margins in construction of small shipsand boats.

Ø Uneven playing field compared to private yards

Ø Volatile exchange rate variation

Ø Unfavorable judgments for legal cases

Infrastructure Modernisation

7. The company has been investing significantlytowards Refurbishment & Replacement of Machineriesand Infrastructure using the RRMI fund sanctioned by the.Govt. of India (Rs 457.36 Cr) for the said purpose. As on31 Mar 2019, orders worth Rs 189.57 Cr have beenplaced, out of which procurement/ work for an amount ofRs 163.89 Cr has been completed. Tenders valued Rs31.28 Cr are under progress.

8. Major modernization activities undertaken duringthe year under review are Wire rope splicing machine,rubber fenders, replacement of firefighting & gas pipelines,upgradation of CCTV surveillance system, canteenmanagement devices, modernization of Officers Cafeteriaand Procurement of Medical Infrastructure for Colony

Dispensary. Besides this various repair & renovationactivities to civil structures of the yard & colony werecarried out

Segment-wise or Product-wise Performance

9. HSL has achieved a value of production aroundRs 594.90 Cr during the FY 2018-19. The Company hasposted profits for the fourth consecutive year despite alean order book and severe liquidity issues owing to thelegacy liabilities. The Company is engaged in three majoractivities i.e. shipbuilding, ship repairs and submarineretrofit and a brief performance in each division is givenin the succeeding paragraphs.

10. Segment wise performance during the FY 2018-19 is as below.

(a) Shipbuilding. HSL has delivered seven vesselsduring the year 2018-19, which comprises One InshorePatrol Vessel to Indian Coast Guard, One 50 Ton BP Tugto Deen Dayal Port Trust, 03 Nos 10 Ton BP Tugs to IndianNavy and Two Pontoons to the Naval Dockyard,Visakhapatnam. HSL is presently handling 06 importantIndian Navy projects comprising of 15 vessels. Out ofthese 15 vessels, 06 vessels are scheduled for deliveryin the current fiscal i.e. 2019-20. The VoP of this divisionwas Rs 145.47 Cr. The reduction in VoP over last year isdue to very low order book. The contracts such as 02Nos Diving Support Vessel and 04 Nos 50 Ton Tugs couldnot fetch any VoP as these contracts were signed in thesecond half the FY 2018-19.

(b) Ship Repairs. Ship repair division has undertakenrefit of 12 vessels of different types for Indian Navy, DCI,SCI, FSI, VPT etc during the year 2018-19. The VoPachieved by this division during the year under reviewwas Rs 122.54 Cr.

(c) Submarine Division. Refit of a Submarinecommenced in the year 2017-18. The VOP generated bySubmarine division during the year under review was Rs317.18 Cr.

Future Outlook

11. HSL is presently working on few important projectsof Indian Navy comprising one Fleet Support Vessel, twoDiving Support Vessel and four 50T BP Tugs. HSL hasbeen nominated for construction of 05 Nos. Fleet SupportShips (FSS), the AoN cost of which is about Rs 9,045 Cr.A global RFP is issued on 06 Oct 2018 for selection ofFSS collaborator through global tendering process.Selection and signing of collaborators contract is expected



37

to be completed in current fiscal year.

12. HSL is focusing on both domestic opportunities inshipbuilding and also in the international market. HSL isalso examining the aspects of product Diversification intocomposites which is a fast growing segment. Effortstowards diversification has been intiated by participatingin EOI’s of FRP boats and Air Cushion Vehicles.

13. In addition to above the yard is actively pursuing/participating to bag/win various national and internationalshipbuilding tenders to improve the order book positionof the company. The following tenders are in the processof bidding viz Pollution control vessels, Missile CumAmmunition barges, Fast patrol Vessels, Air CushionVehicles, Next Generation Missile Vessels etc for IndianNavy and Coast Guard in the next fiscal year.

14. HSL has further optimized its bidding process andhas been aggressively bidding to secure various ShipRepair orders. The yard has been successful in some ofthem. The yard is in process of bidding for refit of anothersubmarine.

Risks & Concerns

15. As brought out in previous years reports,Company’s negative net worth and accumulated lossesof the year prior 2015 continue to hinder our rapidprogress. These adverse financial parameters of thecompany passed on previous years prior 2016 havehindered our particpation in some of the tenders despiteremarkable improvement in last three years.

16. Further, the 30 years old legacy liabilities with regardto Essar Oil Limited Claims has posed serious financialchallenges to the Company. During the year under review,the yard has deposited a total of Rs 68 Crs with Essar Oilas a part of the claim and under direction of the Hon’bleHigh Court of Andhra Pradesh in addition to the amountof Rs 40 Cr deposited in the year 2017-18. Govt. of Indiahas sanctioned a loan of Rs 169 Cr to meet its legacyliabilities which has eased the situation but since the rateof interest is higher than the market rate, the yard will bedeprived of taking its benefit. The yard has requested MoDto consider reduction of interest rate.

17. Besides this, past outstanding employee liabilitiessuch as Wage Revision Arears and Leave encashmentarrears have remained as a cause for concern. TheCompany has cleared around 60% of the outstandingwage revision arrears and leave encashment arrears ofretired employees upto Mar 2015 during the past threeyears.

Internal Control System and their Adequacy

18. Your Company has a robust system of InternalControls to achieve effective and efficient operations,reliability of financial reports and compliance to applicablelaws and regulations. The system comprises a clearlydefined organisatonal structure, pre-identified authoritylevels and procedures issued by the managementcovering all vital and important areas of activities. viz.Purchase, Material Control, Works, Finance & Accounts,Personnel etc.

19. The Company has outsourced internal audit to aChartered Accountant firm i.e. Brahmayya & Co,Chartered Accountants, Visakhapatnam for the financialyear 2018-19.

20. The Internal Control systems are regularly reviewedby the Audit Committee. The adequacy of Internal Controlprocedures is also reviewed by the Statutory Auditors intheir Audit Report. Your Company, being owned byGovernment is subject to Government Audit also.

Financial Performance of the Company

21. The Financial performance of your Company duringthe year as compared to the last year are as under:-

(In Rs Cr)

Details As on As on31 Mar 18 31 Mar 19

Total Income 651.67 605.54

Profit /(Loss) Before Depreciation,Interest, Extraordinary Items and Tax 97.18 96.44

Profit / (Loss) Before Tax 20.99 36.24

Profit / (Loss) after Tax 20.99 36.24

Cumulative Profits / (Losses) (1231.51) (1195.28)

22. During the year under review, the yard has operatedwith a very lean order book of Rs 132 Cr and despite thismanaged to post a Value of production of Rs 594.90 Cras against Rs 644.77 Cr of recorded previous year.Thecompany also posted an operating profit of Rs 68.08 Crduring the year under review. The net profit of the companyhas also increased by 73% and the company recorded anet profit of Rs 36.24 Cr as against Rs 20.99 Cr recordedprevious year.

23. The company continued its austerity measures witha view to economize on the expenditure to the maximumextent feasible which is evident in the reduction ofexpenses to tune of Rs 6.10 Cr. The operational indices



such as Man Hour per CGT, VoP per employee, employeecost as a percentage of VoP during this period have alsoimproved.

Development of Human Resource & IndustrialRelations

24. Employees are the most valuable resources of anyCompany. Therefore the Company gives utmostimportance to training and development of its humanresources so as to maximise their contribution. Employeeswere nominated for various in-house/external seminarsand training modules. Awareness training on occupationalhealth, safety, environment & fire fighting were conductedduring the year.

25. The company also considered the pay revision ofofficers and initiated the process for wage negotiation withthe staff and workers union. While the company hassubmitted its proposal to Ministry of Defence for issue ofpresidential directive for pay revision of officers, theprocess of wage negotiation with staff and workers unionis underway as on 31 Mar 2019.

26. In order to meet the critical requirements of the yard,a total of 09 employees were recruited during the financialyear. The yard is also analyzing the existing gaps anddecided to induct officers at appropriate level in a phasedmanner to bring new expertise to the company in view ofthe future projects.

27. HSL imparts training to a large number of ITIApprentices, Graduate Engineers and Diploma holderswith a view to help them improve skills & employability.The strength of existing apprentices is around 4.21% ofthe total manpower as against the required minimum2.5%. 21 ITI Apprentices, 27 Graduate Engineers and 14Technical (Diploma) holders were imparted training indesignated trades during the year and successfullyreceived Apprentice Certificates from Board ofApprenticeship Training (BOAT), Southern Region,Chennai. Your Company further extended training to 1960students under self- sponsored industrial training program,a ten percent increase as compared to last year.

28. The industrial relations were cordial andharmonious during the year 2018-19.

Environment Protection & Conservation

29. Your Company continues to be environment friendlyand has fulfilled all the statutory requirements of centraland state pollution control boards. The Company iscommitted to meet all the stipulated standards to maintainand protect the environment.

Technological conservation and Renewable energydevelopments

30. The Details of Technological Conservation andRenewable Energy Developments are given in Annexure-8.


31. As per DPE guidelines and Companies Act 2013,considering average net profit for the immediatelypreceding three financial years, your shipyard is has seta budget of Rs 63 lakhs. However your company couldnot spend the entire budgeted amount in the year 2018-19. An annual report on CSR is placed at Annexure – 3.

32. Your Company is committed to CSR andaccordingly the Board of Directors has constituted a sub-Committee for CSR and Sustainability. A CSR &Sustainability Policy and Plan for the year 2018-19 hasalso been formulated. A Senior Management Committeeon CSR & Sustainability was constituted to monitor theimplementation of the CSR Plan for the year 2018-19.The Senior Management Committee is chaired by aGeneral Manager with HODs/ senior officers fromconcerned departments of the yard as its members. TheCommittee oversaw and implemented the CSR Plan forthe year 2018-19.

33. HSL has spent an amount of Rs 3.36 lakhs duringthe year 2018-19. The activities undertaken during theyear 2018-19 has been detailed in the Directors Report.

****



39

ANNEXRE-3

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITYFOR THE YEAR 2018-19

(Pursuant to Section 135 of the Companies Act 2013 read with Rule 8 of the Companies(Corporate Social Responsibility) Rules 2014

1. A brief outline of the CSR Policy : CSR Policy of the company mainly focuses on need based CSR Initiative forbetterment of the Local people. Major thrust area are Cleanliness & Sanitation, Education and Health. The CSR Policy ofthe company has been uploaded in HSL’s website and the link is https://www.hslvizag.in/content/1211_1_CSR.aspx.

2. The Composition of CSR Committee: The CSR Committee of the Board comprises the following directors as its members


(b) Director (Ship Building) Member


Note: Cmde A S Mitra, IN (Retd), Director (Shipbuilding) expired on 14 Jun 2019 and therefore, the committee is due forreconstitution.

Monitoring of CSR Activities: A Senior Management Committee on CSR & Sustainability has been constituted tomonitor the implementation of the CSR Plan for the year 2018-19. The Senior Management Committee is chaired by aGeneral Manager with HODs/ senior officers from concerned departments of the yard as its members. The Committeeoversaw and implemented the CSR Plan for the year 2018-19 within the available funds.

3. Average Net Profit of the Company for the last three years: Rs 31.25 Cr

4. Prescribed CSR Expenditure (two percent of the amount as in Sl No. 3 above) : Rs 63 Lakhs.

5. Details of CSR Spent during the year :

(a) Total amount to be spent for the financial year: Rs 63 Lakhs

(b) Amount Unspent : Rs 59.64 Lakhs

(c) Manner in which the amount spent during the financial year is detailed below:

SL.No.

CSR Projector ActivityIdentified

Sector inwhich theproject iscovered

Projects or Programs

(1) Local Area or other

(2) Specify the state ordistrict where projectsor programs wasundertaken

AmountOutlay

(budget)Project orProgram

wise

Amount spent on theprojects o programsSubheads:

(1) Direct Expenditure onprojects or programs

(2) Overheads

Cumulativeexpenditure

uptoreporting

period

AmountSpent

:Direct orthrough

implement-ing agency

(1) (2) (3) (4) (5) (6) (7) (8)

1 Medical Camp Health Gangavaram Village, Rs 1.50 Rs 1.28 lakhs Rs 1.28 DirectVisakhapatnam lakhs lakhs

2 Free Electricity Education Gandhigram, Nil Rs 2.01 lakhs Rs 3.29 Directto Schools & Visakhapatnam lakhs

Colleges

3 One Day Nutrition Visakhapatnam Nil Rs 0.07 lakhs Rs 3.36 DirectFeeding lakhsdonation

Total Rs 3.36 Lakhs



6. In case the company has failed spend the two percent of the average net profit of the last three financial yeasor any part thereof, the company shall provide the reasons for not spending the amount in the Board’s Report:

The yard has posted profits for the last three financial years i.e 2015-16, 2016-17 and 2017-18. In accordance withthe provisions of Section 135, the Company is mandated to spend 2% of the average net profit i.e. Rs 63 Lakhs.However, the yard has gone through shortage of funds due to payment of various legacy liabilities during the year2018-19. Despite payment of some of the legacy liabilities in the year under review, the yard has total Rs 207 Cr liabilityi.e. Repayment to Overdraft Account – Rs 92 Cr, Payment due to Gratuity fund – Rs 70 Cr, Outstanding Leave Salaryof retirement employees since April 2015 – Rs 28 Cr, Outstanding Pay towards 2009 Wage revision arrears of workers– Rs 17 Cr. Therefore, the company could not allocate money for spending the budgeted amount. The companyis dedicated to CSR and all efforts would be made to allocate the budgeted amount towards CSR activities for FY2019-20 in accordance with Section 135 & Schedule VII of the Companies Act 2013.

7. A responsibility statement of the CSR Committee that the Implementation and monitoring of CSR Policy, is incompliance with CSR objectives and Policy of the Company.

Implementation of CSR Activities is in compliance with Companies Act 2013 and DPE guidelines to meet the CSRobjectives and policy of the Company.

For and on behalf of the Board of Directors of Hindustan Shipyard Limited

(L V Sarat Babu) Dr. Bijoy Kumar SahooRear Admiral, IN (Retd) ChairmanChairman & Managing Director CSR & Sustainability COmmittee

Date: 26 July 2019Place: Visakhapatnam



41

ANNEXURE – 4 TO THE BOARD'S REPORT

Form No MGT-9

EXTRACT OF ANNUAL RETURNas on Financial Year ended on 31 Mar 2019

[Pursuant to Section 92(3)of the Companies Act 2013 and rule 12(1) of the Companies(Management & Administration) Rules 2014]

I. REGISTRATION AND OTHER DETAILS

(i) Corporate Identification Number (CIN) U74899AP1952GOI076711

(ii) Registration Date 21-Jan-1952

(iii) Name of the Company HINDUSTAN SHIPYARD LIMITED

(iv) Category of Company Private Company/ Company Limited by Shares

Sub-category of the Company Government Company

(v) Registered office Gandhigram PO,

Visakhapatnam - 530005.

(vi) Whether listed company No

(vii) Name, Address and Contact details of

Registrar and Transfer Agent N.A.

II. Principal Business Activity of the Company

Sl No Name & Description of NIC Code of % of the total turnover

Main Products / services the Product / services of the Company

1 Building of Ships & Boats 3011 25%

2 Repair of transport equipment 3315 75%

except motor vehicles

III. PARTICULARS OF HOLDING, SUBSIDARY AND ASSOCIATE COMPANIES

Sl No Name & Address of the CIN/GLN Holding/ Subsidary/ % of Shares Held Applicable

Company Associate Section

Nil



IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

(i) Category wise Share Holding

Category of Shareholders No of Shares held at the begining of No of Shares held at the end of thethe year (As on 31-March-2018) year (As on 31-March-2019)

Demat Physical Total % of the Demat Physical Total % of theTotal Total

Shares Shares

A. Promoters

(1) Indian

a) Individual/ HUF Nil 4 4 0.00012 Nil 4 4 0.00012 Nil

b) Central Govt Nil 30,19,918 30,19,918 99.99988 Nil 30,19,918 30,19,918 99.99988 Nil

c) State Govt(s) Nil Nil Nil Nil Nil Nil Nil Nil Nil

d) Bodies Corp. Nil Nil Nil Nil Nil Nil Nil Nil Nil

e) Banks / FI Nil Nil Nil Nil Nil Nil Nil Nil Nil

f) Any other Nil Nil Nil Nil Nil Nil Nil Nil Nil

Subtotal (A) (1) — 30,19,922 30,19,922 100 — 30,19,922 30,19,922 100 —

(2) Foreign

a) NRIs-Individuals Nil Nil Nil Nil Nil Nil Nil Nil Nil

b) Other-Individuals Nil Nil Nil Nil Nil Nil Nil Nil Nil

c) Bodies Corp Nil Nil Nil Nil Nil Nil Nil Nil Nil

d) Banks / FI Nil Nil Nil Nil Nil Nil Nil Nil Nil

f) Any other Nil Nil Nil Nil Nil Nil Nil Nil Nil

Subtotal (A) (2) Nil Nil Nil Nil Nil Nil Nil Nil Nil

Total Shareholding of Promoter(A) = (A)(1)+(A)(2) Nil 30,19,922 30,19,922 100 Nil 30,19,922 30,19,922 100 Nil

B. Public Shareholding

1. Institutions

a) Mutual Funds Nil Nil Nil Nil Nil Nil Nil Nil Nil

b) Banks / FI Nil Nil Nil Nil Nil Nil Nil Nil Nil

c) Central Govt Nil Nil Nil Nil Nil Nil Nil Nil Nil

d) State Govt(s) Nil Nil Nil Nil Nil Nil Nil Nil Nil

e) Venture Capital Funds Nil Nil Nil Nil Nil Nil Nil Nil Nil

f) Insurance Companies Nil Nil Nil Nil Nil Nil Nil Nil Nil

g) FIIs Nil Nil Nil Nil Nil Nil Nil Nil Nil

h) Foreign Venture Capital Funds Nil Nil Nil Nil Nil Nil Nil Nil Nil

i) Others (specify) Nil Nil Nil Nil Nil Nil Nil Nil Nil

Sub-total (B)(1):- Nil Nil Nil Nil Nil Nil Nil Nil Nil

% changeduring

the year



43

Category of Shareholders No of Shares held at the begining of No of Shares held at the end of thethe year (As on 31-March-2018) year (As on 31-March-2019)

Demat Physical Total % of the Demat Physical Total % of theTotal Total

Shares Shares

2. Non-Institutionsa) Bodies Corp.i) Indian Nil Nil Nil Nil Nil Nil Nil Nil Nil

ii) Overseas Nil Nil Nil Nil Nil Nil Nil Nil Nil

b) Individuals Nil Nil Nil Nil Nil Nil Nil Nil Nil

i) Individual shareholdersholding nominal sharecapital upto Rs. 1 lakh Nil Nil Nil Nil Nil Nil Nil Nil Nil

ii) Individual shareholdersholding nominal sharecapital in excess of Rs 1 lakh Nil Nil Nil Nil Nil Nil Nil Nil Nil

c) Others (specify)

Non Resident Indians Nil Nil Nil Nil Nil Nil Nil Nil Nil

Overseas Corporate Bodies Nil Nil Nil Nil Nil Nil Nil Nil Nil

Foreign Nationals Nil Nil Nil Nil Nil Nil Nil Nil Nil

Clearing Members Nil Nil Nil Nil Nil Nil Nil Nil Nil

Trusts Nil Nil Nil Nil Nil Nil Nil Nil Nil

Foreign Bodies – D R Nil Nil Nil Nil Nil Nil Nil Nil Nil

Sub-total (B)(2):- Nil Nil Nil Nil Nil Nil Nil Nil Nil

Total Public Shareholding(B)=(B)(1)+ (B)(2) Nil Nil Nil Nil Nil Nil Nil Nil NilC. Shares held by Custodian

for GDRs & ADRs Nil Nil Nil Nil Nil Nil Nil Nil Nil

Grand Total (A+B+C) 30,19,922 30,19,922 100% — 30,19,922 30,19,922 100% —

Sl No Shareholder’s Name Shareholding at the begining of the year Shareholding at the end of the year

No of Shares % of total % of Shares No of Shares % of total % of SharesShares of the pledged/ Shares of pledged/

company encumbered the encumberedto taltal company to taltalshares shares

1 President of India 30,19,918 99.99988 NIL 30,19,918 99.99988 NIL NIL

2 Ms. Surina Rajan 1 0.00003 NIL 0 0 NIL 0.00003

3 Shri Vijayendra 0 0 NIL 1 0.00003 NIL 0.00003

3 RAdm L V Sarat Babu 1 0.00003 NIL 1 0.00003 NIL NIL

4 Cmde A S Mitra 1 0.00003 NIL 1 0.00003 NIL NIL

5 Cmde PHM Salih 1 0.00003 NIL 0 0 NIL 0.00003

6 Cmde Hemant Khatri 0 0 NIL 1 0.00003 NIL 0.00003

(ii) Shareholding of Promoters

% changeduring

the year

% Change inShareholding

duringthe year



(iii) Change in Promoter’s Shareholding (Please Specify, if there is no change)

Description Shareholding at the Cumulative Shareholdingbeginning of the year during the year

No of % of total No of % of totalShares shares of Shares shares of

company company

1. President of India

At the beginning of the year 30,19,918 99.99988 30,19,918 99.99988

Date wise increase/ Decrease in promoter shareholding

during the year specifying the reasons for increase/

decrease (e.g Allotment/ transfer/bonus/sweat equity 0 0 0 0

At the end of the year 30,19,918 99.99988 30,19,918 99.99988

2. Ms. Surina Rajan

At the beginning of the year 1 0.00003 1 0.00003



decrease (e.g Allotment/ transfer/bonus/sweat equity

16 Jul 2018 Transfer -1 -0.00003 -1 -0.00003

At the end of the year 0 0 0 0

3. Rear Admiral L V Sarat Babu, IN (Retd)




decrease (e.g Allotment transfer/bonus/sweat equity 0 0 0 0

At the end of the year 1 0.00003 1 0.00003

4. Cmde PHM Salih, IN (Retd)





16 Jul 2018 Transfer -1 -0.00003 -1 -0.00003

At the end of the year 0 0 0 0

5. Cmde A S Mitra, IN (Retd)




decrease (e.g Allotment/ transfer/bonus/sweat equity 0 0 0 0




45



company company

(iv) Shareholding pattern of top ten Shareholders (Other thanDirectors, Promoters and Holders of GDRs and ADRs)



company company

At the beginning of the year Nil Nil Nil Nil

Date wise increase/ Decrease in promotershareholding during the year specifying thereasons for increase/decrease(e.g Allotment/ transfer/bonus/sweat equity) Nil Nil Nil Nil

At the end of the year Nil Nil Nil Nil

(v) Shareholding pattern of Directors and Key Managerial Personnel

SHAREHOLDING OF DIRECTORS



company company

1. Rear Admiral L V Sarat Babu, IN (Retd.)


Date wise increase/ Decrease in promoter 0 0 0 0

shareholding during the year specifying the

reasons for increase/decrease

(e.g Allotment/ transfer/bonus/sweat equity


6. Shri Vijayendra, IAS

At the beginning of the year 0 0 0 0

Date wise increase/ Decrease in promoter shareholdingduring the year specifying the reasons for increase/decrease (e.g Allotment/ transfer/bonus/sweat equity

16 Jul 2018 Transfer 1 0.00003 1 0.00003


7. Cmde Hemant Khatri, IN (Retd)


Date wise increase/ Decrease in promoter shareholdingduring the year specifying the reasons for increase/decrease (e.g Allotment/ transfer/bonus/sweat equity

16 Jul 2018 Transfer 1 0.00003 1 0.00003






company company

SHAREHOLDING OF KEY MANAGERIAL PERSONNEL



company company

At the beginning of the year Nil Nil Nil Nil

Date wise increase/decrease in promotershareholding during the year specfying thereasons for increase/decrease(e.g. Allottment/transfer/bonus/sweat equity etc.) Nil Nil Nil Nil

At the end of the year Nil Nil Nil Nil

2. Cmde A S Mitra, IN (Retd)

At The beginning of the year 1 0.00003 1 0.00003



decrease (e.g Allottment/transfer/bonus/sweat equity 0 0 0 0


3. Shri Vijayendra, IAS





16 Jul 2018 Transfer 1 0.00003 1 0.00003


4. Cmde Hemant Khatri, IN (Retd)





16 Jul 2018 Transfer 1 0.00003 1 0.00003




47

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment. (Rs in Cr)

Description Secured Unsecured Deposits TotalLoans Loans Indebtedness

excludingdeposits

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole time Director and/or Manager(Amount in Rs.)

Indebtedness at the beginning of the financial year

(i) Principal Amount 194.91 372.21 0 567.12

(ii) Interest due but not paid 0 0 0 0

(iii) Interest accrued but not due 0 0 0 0

Total (i+ii+iii) 194.91 372.21 0 566.12

Change in Indebtedness during the financial year

(i) Addition – 0 169.00 0 0

(ii) Reduction – 103.22 0 0 0

Net Change

Indebtedness at the end of the financial year

(i) Principal Amount includes Interest (Term Loan + EPC) 91.69 541.21 0 632.90

(ii) Interest due but not paid 0 0 0 0

(iii) Interest accrued but not due 0 0 0 0

Total (i+ii+iii) 91.69 541.21 0 632.90

RAdm LVS Babu, Cmde A S Mitra Cmde PHM Salih Cmde Hemant Khatri Cdr J P Gupta, Shri S V RambabuCMD D (S) D (CP&P) D (SP) D (CP&P) D (F&C)

1 Gross salary 31,49,756 22,33,047 2,20,486 31,33,287 8,90,092 8,14,397 1,04,41,065

(a) Salary as per provisionscontained in section 17(1) ofthe Income-tax Act, 1961 31,49,756 22,33,047 2,20,486 31,33,287 8,90,092 8,14,397 1,04,41,065

(b) Value of perquisites u/s17(2) Income-tax Act, 1961 0 0 0 0 0 0 0

(c) Profits in lieu of salary undersection 17(3) Income- tax Act, 1961 0 0 0 0 0 0 0

2 Stock Option 0 0 0 0 0 0 0

3 Sweat Equity 0 0 0 0 0 0 0

4 Commission- as % of profit 0 0 0 0 0 0 0

5 Others, please specify 0 0 0 0 0 0 0

Total (A) 31,49,756 22,33,047 2,20,486 31,33,287 8,90,092 8,14,397 1,04,41,065

Ceiling as per the Act Being a Government Company, Exempted

TotalAmount

Sl No Name of MD/WTD/ManagerParticulars of Remuneration



B. Remuneration to other Directors

S. No. Particulars of Remuneration Name of DirectorsTotal

Amount Dr Bijoy Shri Pradeep Shri Shrish

Kumar Sahoo Gupta Kumar

1 Independent Directors

Fee for attending board committee meetings 17500 Nil Nil 17,500

Commission Nil Nil Nil Nil

Others, please specify Nil Nil Nil Nil

Total (1) 17500 Nil Nil 17,500

2 Other Non-Executive Directors

Fee for attending board committee meetings Nil Nil Nil Nil

Commission Nil Nil Nil Nil

Others, please specify Nil Nil Nil Nil

Total (2) Nil Nil Nil Nil

Total (B)=(1+2) 17,500 Nil Nil 17,500

Total ManagerialRemuneration 17,500 Nil Nil 17,500

Overall Ceiling as per the Act Being a Government Company, Exempted

C. Remuneration to Key Managerial Personnel other than MD / Manager / WTD:

S. No. Particulars of Remuneration Key Managerial PersonnelInaitula Baig Smt M Sujata

Company CFO Total AmountSecretary (Upto 12 Dec 18)

1 Gross salary 13,88,551 11,26,645 25,15,196

(a) Salary as per provisions contained in section 17(1)of the Income-tax Act, 1961 13,88,551 11,26,645 25,15,196

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0 0 0

(c) Profits in lieu of salary under section 17(3)Income-tax Act, 1961 0 0 0

2 Stock Option 0 0 0

3 Sweat Equity 0 0 0

4 Commission 0 0 0

- as % of profit 0 0 0

others, specify… 0 0 0

5 Others, please specify 0 0 0

Total 13,88,551 11,26,645 25,15,196

Ceiling as per the Act Being a Government Company, Exempted



49

VII. PENALTIES/PUNISHMENT/COMPUNDING OF OFFENCES

By Order of the Board of DirectorsFor Hindustan Shipyard Limited

(LV Sarat Babu, NM)Rear Admiral, IN (Retd)


Place : VisakhapatnamDate : 26 July 2019

Type Section of the Brief Details of Penalty Authority Appeal made,Companies Act Description / Punishment/ [RD / NCLT/ if any

Compounding COURT] (give Details)fees imposed

A. COMPANY

Penalty

Punishment NilCompounding

B. DIRECTORS

Penalty


C. OTHER OFFICERSIN DEFAULT

Penalty




ANNEXURE “5” TO THE BOARD’S REPORT

POSITION REGARDING REPRESENTATION OF SCHEDULED CASTE AND SCHEDULEDTRIBES IN VARIOUS CATEGORIES OF POSTS AS ON 31ST Mar 2018 AND 31ST MAR 2019

As on 31st Mar 2018 As on 31st Mar 2019

Classification of Total Scheduled Scheduled Total Scheduled Scheduledpost/ Services Strength Castes Tribes Strength Castes Tribes

PERMANENT

Group “A” 169 37 20 183 40 20

Group “B” 166 35 13 134 30 10

Group “C”(Excluding Safaiwala) 510 82 44 400 70 41

Group “D”(Excluding Safaiwala) 320 76 42 302 71 41

Group’C’&’D’ (safaiwala) 12 12 — 8 8 —

TEMPORARY:

Group “A” — — — — — —

Group “B” — — — — — —

Group “C” — — — — — —

Group “D”(Excluding Safaiwala) — — — — — —

Group “D”(Safaiwals) — — — — — —

Group “D”(Apprentics under Act 1961) 120 15 05 07 02 01

FIXED TERM CONTRACT

Group “A” — — — — — —

Group “B” 19 3 1 29 4 1

Group “C 23 4 2 23 4 2

Group “D”(Excluding Safaiwala) 386 79 3 391 82 3

Group “D”( Safaiwals) — 2 — 3 2 —



51


PARTICULARS OF RECRUITMENT MADE DURING THE YEAR 2018-19 AND THE NUMBERFILLED BY MEMBERS OF SCs/STs

Classification of Posts/Services Total Number Scheduled Castes Scheduled Tribes Reasons for shortfall andof posts filled steps taken to improve

during the year the position.Pos ts

ReservedPos tsfilled

Pos t sReserved

Pos t sfilled

PERMANENT:

GROUP “A” 5 - - — — —

GROUP “B” 4 — — — — —

GROUP “C” — — — — — —

GROUP “D”(Excluding safaiwala) — - - — — —

GROUP “D” Safaiwala — — — — — —

GROUP “D”(Apprentices under Act 1961) — — — — — —

FIXED TERM CONTRACTFOR TWO YEARS:

GROUP “A” — — — — — —

GROUP “B” — — — — — —

GROUP “C” — — — — — —

GROUP “D”(Excluding Safaiwala) — — — — — —

GROUP “D”Safaiwala — — — — — —




REPRESENTATION OF EX-SERVICEMEN AND NUMBER OFWOMEN EMPLOYEES AS ON 31st MARCH 2019

Classification of Total Strength Ex-Servicemen Women employeesPosts/Services

Number % Number %

PERMANENT:

GROUP “A” 183 18 9.84% 14 7.65%

GROUP “B” 134 1 0.75% 17 12.69%

GROUP “C”(Excluding safaiwala) 400 4 1.00% 16 4%

GROUP “D”(Excluding safaiwala) 302 1 0.33% 4 1.32%

GROUP “C” & “D” Safaiwala 8 — — 4 50%

GROUP “D”(Apprentices under Act 1961) - - - - -

FIXED TERM CONTRACTFOR TWO YEARS:

GROUP “A” — — — — —

GROUP “B” 29 14 48.28% 5 17.24%

GROUP “C” 23 7 30.43% 3 13.04%

GROUP “D”(Excluding Safaiwala) 391 — — 3 0.77%

GROUP “D” Safaiwala 3 — — 3 100%



53

(i) The steps taken or impact on Conservation of Energy The following steps have been taken towards EnergyConservation.

(i) Installation & utilization of 02 MW Roof Top Solar PowerPlant.

(ii) Restricted usage of heavy loads like operation of AirCompressors to bare minimum.

(iii) Replacement of Old switchgear & old PLCA cables withrated XLPE cables & New switchgear etc.

(iv) Replacement of old lighting fixtures with LED lamps.

(v) Replacement of old Air Conditioners with VRF/VRV airconditioning systems.

(vi) Operation of distribution transformers around 70%loading by turning off during off peak hours.

(vii) Switching off plant & machinery when not in use.

(viii) Installation of VRD Units of welding machines.

(ix) Use of APFC capacitor banks to improve the powerfactor thereby reducing the overall power consumption.

(x) Reduction of lighting to optimum level by using lightingmanagement systems and BMS.

(ii) The Steps taken by the Company utilizing alternate Installation & commissioning of 2 MW Roof Top Solar Powersources of energy Plant during the year 2018-19. Installation of one an additional

1MW Rooftop Solar Power Plant is in process.

(iii) The capital investment on energy The company has decided to invest around Rs 40 lakhs inconservation equipments on energy conservation equipment.

(i) The efforts made towards technology absorption (i) HSL has developed concept and functional design ofPCV for Indian Coast Guard with inhouse resources.

(ii) Extensive use of raster to vector and vector to CADapplications for digitisation of archived design data.

(iii) Machine to machine interaction between Designdepartment to production floor.

(ii) The Benefits derived like product improvement, Cost (i) HSL has subsequently submitted bids with the aboveReduction, product development or Import Substitution preliminary designs thereby saving cost of import/

procurement of the designs of PCV by external agency.


INFORMATION AS PER SECTION 134(3)(m) OF COMPANIES ACT 2013 READ WITH RULENO 8 (3) OF COMPANIES (ACCOUNTS) RULES 2014 AND FORMING PART OF THE

BOARD’S REPORT FOR THE YEAR 2018-19(A) CONSERVATION OF ENERGY:

(B) TECHNOLOGY ABSORPTION:



(C) FOREIGN EXCHANGE EARNINGS AND OUTGO:

a) Foreign exchange earned in terms of actual Nil

inflows during the year 2018-19

b) Foreign Exchange outgo during the

year 2018-19 in terms of actual outflow:

a) Material procurement Rs 90.78 Cr

b) Others Rs 56.02 Cr

Total Rs 146.80 Cr

(ii) The functional and detailed design of the DSV is carriedout in house by external agency and 50T Tugs by inhouse resources.

(iii) The 3nos functional and detail design of 3nos Flap gateis carried out in house. Complete 3D modelling of 50TTug and DSV to optimize layouts is being carried out.

(iv) The Basic, functional and detailed design of 4*50 Tontugs is being carried out in-house with own resources.

(v) The end-end process by implementing SAP withintegration to PLM is moving towards completion. Thiswill enhance the design efficiency and reduces processtime to the minimum.

(iii) In case of imported technology (Imported during the Not applicable for the FY 2015-16, 2016-17 and2017-18,

last three years reckoned from the beginning of the as HSL has not imported any design in these years.

financial year)

(a) The details of technology imported

(b) The year of import

(c) Whether technology been fully absorbed

(d) If not fully absorbed, areas where absorption hasnot taken place and the reasons thereof and

(iv) The expenditure incurred on Researchand Development Nil.



55

G.R. KUMAR & CO. LLPCHARTERED ACCOUNTANTS(Successors to G.R. Kumar & Co.)

9, Merry Life Apts, Doctors Colony, Peda Waltair,Visakhapatnam - 530017, Andhra Pradesh.Tel : +91-891-2755223, 2793300 Fax : +91-891-2762009E-mail : [email protected] Web : www.grk.in

INDEPENDENT AUDITOR’S REPORT

ToThe MembersHindustan Shipyard LimitedVisakhapatnam

Report on the Audit of Standalone Financial Statements

Opinion

1. We have audited the standalone financial statements of Hindustan Shipyard Limited (‘the Company’), whichcomprise the Balance Sheet as at 31 March 2019, the Statement of Profit and Loss and the Statement of CashFlow for the year then ended, and notes to the financial statements, including a summary of significant accountingpolicies and other explanatory information

2. In our opinion, and to the best of our information and according to the explanations given to us, the aforesaidstandalone financial statements read together with the other notes thereon give the information required by theCompanies Act, 2013 (the ‘Act’) in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the accounting Standards specified under section133 of the Act, of the state of affairs of the Company as at 31 March 2019, its profit and its cash flows for theyear ended on that date.

Basis for Opinion

3. We have conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in theAuditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Institute of Chartered Accountants of India’s(ICAI) Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.

Emphasis of Matters

a) As described in sub para No. 1.3 & 1.4 of Note No. 18B of Notes on Accounts to the financial statements withrespect to demands raised by regulatory / statutory authorities and claim against the company aggregating toRs. 1,62,444 Lakhs, the Company is a defendant in a lawsuit which contains an element of uncertainty relatedto the outcome of the lawsuits against the company.

b) As stated in sub para No. 11(a) of Note No. 18B of Notes on Accounts to the financial statements, no provisionhad been made in respect of interest of Rs. 4,218 Lakhs on RRMI funds for the years 2011-12 and 2012-13.Further, as referred to in sub para No. 11(b) of Note No. 18B of Notes on Accounts to the financial statements,provision of Rs. 14,102 Lakhs has not been made up to the year ended 31 March 2019 in respect of interest toGOI on RRMI Funds as per the terms of sanction.

c) Refer to sub para No. 20 of Note No. 18B of Notes to Accounts to the financial statements with respect toBalances of Sundry Debtors/Sundry Creditors which are in the process of confirmation /reconciliation and



consequent adjustment, if any, upon confirmation /reconciliation. However, confirmations from creditors couldnot be sought as compilation of balances from various GL A/cs was pending during the course of migration oflegacy system to the proposed ERP system. In the absence of vendor’s confirmation, reconciliation, if any andother supportive audit evidence, we are unable to comment upon such creditors’ balances.

Our opinion is not modified with respect of this matter.

Other matter

a) PPE is carried at Rs. 21,944.35 Lakhs as at 31 March 2019 including freehold property measuring 6.595 acres.However, title to the freehold immovable property in possession of the company to the extent of 3.35 acres(Survey No. 1011) were not produced for verification.

b) The financial statements of the Company for the year ended 31 March 2018, were audited by predecessor, whoexpressed an unmodified opinion on those statements on 16 July 2018.

Our opinion is not qualified in respect of the above matters.

Information other than the financial statements and Auditor’s Report thereon

4. The Company’s Board of Directors is responsible for the other information. The other information comprisesthe information included in the Annual Report, but does not include the financial statements and our auditor’sreport thereon.

Our opinion on the financial statements does not cover the other information and we do not express any formof assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and,in doing so, consider whether the other information is materially inconsistent with the financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work wehave performed, we conclude that there is a material misstatement of this other information, we are required toreport that fact. We have nothing to report in this regard.

Responsibility of Management and those charged with Governance for the Standalone Financial Statements

5. The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the CompaniesAct, 2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a trueand fair view of the financial position, financial performance, and cash flows of the Company in accordancewith the accounting principles generally accepted in India, including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of appropriate implementation and maintenanceof accounting policies; making judgments and estimates that are reasonable and prudent; and design,implementation and maintenance of adequate internal financial controls, that were operating effectively forensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentationof the financial statement that give a true and fair view and are free from material misstatement, whether due tofraud or error.

6. In preparing the financial statements, management is responsible for assessing the Company’s ability to continueas a going concern, disclosing, as applicable, matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to cease operations, or hasno realistic alternative but to do so.

7. Those Board of Directors are also responsible for overseeing the company’s financial reporting process.

Auditor’s Responsibility for the Audit of the Financial Statements

8. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in



57

accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expectedto influence the economic decisions of users taken on the basis of these standalone financial statements.

9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also :

· Identify and assess the risks of material misstatement of the standalone financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances. Under Section 143(3)(i) of the Companies Act, 2013 we are alsoresponsible for expressing our opinion on whether the Company has adequate internal financial controls systemin place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, basedon the audit evidence obtained, whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in thestandalone financial statements or if such disclosures are inadequate, to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor’s report. However, future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements including thedisclosures and whether the standalone financial statements represent the underlying transactions and eventsin a manner that achieves fair presentation.

10. Materiality is the magnitude of misstatements in the standalone financial statements that, individually or inaggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financialstatements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning thescope of our audit work and in evaluating the results of our work and (ii) to evaluate the effect of any identifiedmisstatements in the financial statements.

11. We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.

12. We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence and to communicate with them all relationships and other matters thatmay reasonably be thought to bear on our independence and where applicable, related safeguards.

13. From the matters communicated with those charged with governance, we determine those matters that wereof most significance in the audit of the standalone financial statements of the current period and are thereforethe key audit matters. We describe these matters in our auditor’s report unless law or regulation precludespublic disclosure about the matter or when, in extremely rare circumstances, we determine that a mattershould not be communicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.



Report on Other Legal and Regulatory Requirements

14. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Governmentof India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure A, astatement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

15. Provisions of Section 197(16) are not applicable to Government companies vide notification No. G.S.R. 463(E)F.No.1/2/2014-CL.V dated 05.06.2015 issued by the Central Government.

16. Further to our comments in Annexure A, as required by Section 143(3) of the Act, we report that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit;

b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appearsfrom our examination of those books;

c. The standalone financial statements dealt with by this report are in agreement with the books of account;

d. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specifiedunder Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e. On the basis of the written representations received from the directors as on 31 March, 2019 taken on recordby the Board of Directors, none of the directors is disqualified as on 31 March, 2019 from being appointed as adirector in terms of Section 164 (2) of the Act;

f. We have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as on 31March 2019 in conjunction with our audit of the standalone financial statements of the Company for the yearended on that date and our report as per Annexure B expressed an unmodified opinion; and

g. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according tothe explanations given to us:

i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements;

ii. the Company has made provision, as required under the applicable law or accounting standards, for materialforeseeable losses, if any, on long-term contracts including derivative contracts;

iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund bythe Company.

17. As required by Section 143 (5) of the Companies Act 2013, we give in the Annexure C, to this report a statementon the directions by Comptroller & Auditor General of India, to the extent applicable.

For G.R.KUMAR & CO LLPChartered Accountants

Firm Registration No: 04941S

Sd/-(SIVA SAI HARI BHASKAR NETI)

Designated PartnerMembership Number: 204962

UDIN : 19204962AAAAAD4899




59

Annexure A to the Independent Auditor’s Report

The Annexure referred to in paragraph 13 of our Independent Auditors’ Report of even date to themembers of the Company on the standalone financial statements as of and for the year ended 31March 2019

Based on the audit procedures performed for the purpose of reporting a true and fair view on the standalonefinancial statements of the Company and taking into consideration the information and explanations given to usand the books of account and other records examined by us in the normal course of audit, and to the best of ourknowledge and belief, we report that:

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details andsituation of property, plant and equipment;

(b) The Company has a regular program of physical verification of its property, plant and equipment under whichproperty, plant and equipment are verified in a phased manner over a period of three years, which, in ouropinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordancewith this program, certain property, plant and equipment were verified during the year and no materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records ofthe Company, title to the immovable property in possession of the company to the extent of 6.595 acres asdisclosed in Note 5 to the standalone financial statements, are held in the name of the Company, except for3.35 acres (Survey No. 1011).

(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervals duringthe year, except for goods-in-transit No material discrepancies were noticed on the aforesaid verification.However, a variance between inventory as per inventory module and finance module amounting to Rs. 77.51Lakhs (Credit) was adjusted during the course of reconciliation process.

(iii) The Company has not granted any unsecured loans, to companies covered in the Register maintained underSection 189 of the Act and accordingly the para 3(iii) of the Order is not applicable to the company.

(iv) The Company has not granted any loans or provided any guarantees or security to the parties covered underSection 185 of the Act. The provisions of section 185 and 186 of the Companies Act, 2013 are not applicableto the Company vide Notification GSR No.463(E) F.No.1/2/2014-CL.V dated 5th June 2015

(v) The Company has not accepted any deposits during the year from the public within the meaning of provisionsof section 73 to 76 of the Act and The Companies (Acceptance of Deposits) Rules, 2014 (as amended).Accordingly, the provisions of Clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made bythe Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act inrespect of Company’s products and services and are of the opinion that, prima facie, the prescribed accountsand records have been made and maintained. However, we have not made a detailed examination of the costrecords with a view to determine whether they are accurate or complete.

(vii) (a) The Company is regular in depositing undisputed statutory dues including provident fund, employees’state insurance, income-tax, sales-tax, goods and services tax, service tax, duty of customs, duty of excise,value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities. Further,no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more thansix months from the date they became payable.

(b) The dues outstanding in respect of income-tax, sales tax, duty of customs, duty of excise and value added taxon account of any dispute, are as follows :



Statement of Disputed Dues :

Name of the Statue Nature of Amount Amountpaid Period to Forum wheredues (Rs. Lakhs) / adjusted which the dispute is pending

(Rs. Lakhs) amountrelates

GVMC Property Tax 13.39 Nil 1984-1995 High Court

EPF & MP Act, 1952 Penal Interest 109.78 Nil 2002-2005

ESI Act ESI Dues 103.21 Nil 01.04.1998+ Interest to 30.09.2000

ESI Dues 169.61 Nil 1985-1993

Finance Act, 1994 Service Tax 472.70 Nil 2008-2014 CESTAT

Service Tax 148.28 Nil 2008-2014

Service Tax 180.93 Nil 2006-2013

AP VAT Act VAT 217.00 43.75 2006-2011 STAT, Vizag

VAT 200.00 4.98 2012-2013 ADC(CT), Vijayawada

VAT 116.00 Nil 2013-2014

VAT 28.00 4.37 2011-12

VAT 24.00 3.03 2015-16

CST Act CST 159.00 19.96 2013-2014

Income Tax Act IT 35.64 7.12 2013-14 CIT (A) Hyd.

IT 47.96 9.59 2015-16

Total 2025.50 44.07

(viii) The Company has not defaulted in repayment of loans or borrowings to any financial institution or a bank or anydues to debenture-holders during the year.

(ix) The Company has not raised any money by way of initial public offer or further public offer (including debtinstruments). In our opinion, the term loans were applied for the purpose for which the loans were raised.

(x) According to the information and explanations given to us, no material frauds by the Company or on theCompany by its officers or employees has been noticed or reported during the course of our audit.

(xi) Provision of Section 197 are not applicable to Government companies vide notification No. G.S.R. 463(E)F.No.1/2/2014-CL.V dated 05.06.2015 issued by the Central Government and hence the provisions of Clause3(xi) of the Order are not applicable.

(xii) The Company is not a nidhi company and hence reporting under clause 3(xii) of the Order is not applicable.

(vi) According to the information and explanations given to us and based on our examinations of the records of theCompany, transactions with the related parties are in compliance with sections 177 and 188 of the Act, whereapplicable. The details of such related party transactions have been disclosed in the financial statements asrequired under Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act,read with Rule 7 of the Companies (Accounts) Rules, 2014.

(vii) During the year, the Company has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year and hence reporting under clause 3(xiv) of the Order is notapplicable to the Company.



61

(viii) In our opinion and according to the information and explanations given to us and based on our examination ofthe records, the Company has not entered into non-cash transactions with directors or persons connected withits directors. Accordingly, neither of the provisions of Section 192 of the Act nor Clause 3(xv) of the Order areapplicable to the Company.

(ix) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 andhence the provisions of Clause 3(xvi) of the Order are not applicable to the Company.





UDIN : 19204962AAAAAD4899Place : VisakhapatnamDate : 26 July 2019



1 Whether the company has system in place to processall the accounting transactions through IT system? Ifyes, the implications of processing of accountingtransactions outside IT system on the integrity of theaccounts along with the financial implications, if any,may be stated.

The company’s present IT System – RAMCO does notprocess all the accounting transactions. It has certainlimitations and the implication of processing ofaccounting transactions outside IT system on the integrityof accounts along with the financial implications arestated here under :

· It is not integrated to all the modules. Presently,the integrated modules in RAMCO are finance,HR, Inventory and Purchase and it does notintegrate the Design, Planning, Production, PlantMaintenance, Housing estate, Treasury etc.

· Even, the Inventory and Finance modules are notproperly integrated and hence, variances betweeninventory reports and finance GLs do exist whichare manually adjusted in books of accountsperiodically. Financial GL and inventory report arenot reconciled. In spite of auto posting of inventorytransactions in Finance GL, a variance of Rs.77,51,199 during the FY 2018-19 causes concern.

· Transactions are to be authorized by a competentauthority before being posted in finance GL. Thissuffers from a limitation and ageing of such parkingand posting transactions pending authorization asat 31 March 2019 was Rs. 182.13 Lakhs. Liabilitycould not be recorded in financials against physicalreceipt of inventory though GRN was posted ininventory module.

· Fixed asset register is being maintained manuallythrough Microsoft Excel Spread Sheets as theRAMCO does not support the asset register. Infact, depreciation is also calculated manually usingExcel spread sheets. Even, depreciation for theentire financial year is posted in books. As per theAccounting Policy, depreciation on additions /disposals made during the year is to be chargedpro-rata by grouping them on quarterly basis.However, as evident from the journal entries forposting annual depreciation, the accounting policyis not given effect in letter and spirit. For the FY2018-19 Depreciation of Rs. 467.45 Lakhs wascharged to Statement of Profit & Loss.

Annexure B to the Independent Auditor’s Report

(As referred to in Paragraph 14(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even dateto the members of the Hindustan Shipyard Limited on the standalone financial statement for the year ended 31 March 2019)

As required by Section 143 (5) of the Companies Act 2013 we report, on the basis of such checks of the books and records ofthe Company as we considered appropriate and according to the information and explanations given to us during the course ofour audit and the audit procedures conducted by us, on the directions and sub-directions issued by Comptroller & AuditorGeneral of India, to the extent applicable, that :

Sl.No. Our CommentsDirection / Sub-Direction



63


· Cost sheets are maintained manually in MicrosoftExcel Sheets as there are no controlling Module inthe present IT System.

· Sub-para 18 of Note No. 17B of Notes on Accountscontained an assertion that reconciliation ofbalances as per Price Stores Ledger and Bin Cardswould be a continuous process was, in fact,contradicting with ERP application. Bin Card controlsystem would no longer be a control mechanismwhen ERP was extended to inventory module.Rather, the storage location, bin wise, should havebeen updated in ERP which would suffice andmeet the requirement. The process of reconcilingbin card with stores ledger would involve manualintervention and human resources are noteffectively used in meeting inventory managementobjectives.

A financial restructuring proposal has been pendingwith the Ministry of Defence since February 2013.

As per the revised proposal, HSL seeks to convert Rs.37,221 Lakhs being the Loan in perpetuity, sanctionedby GoI (GL Code : 2-02-01-012) into Equity which wouldreduce the long term loans and improve the Debt /Equity ratio. (D / E Ratio).

Rs. 4,218 Lakhs being the interest of RRMI grant forthe first year of sanction viz., FY 2011-12 is sought tobe converted into Equity. It is to be noted that noprovision in respect of arrears of interest for Rs. 4,218Lakhs was made in books of accounts and hence, theliabilities do not include Rs. 4,218 Lakhs and also thenotional interest of Rs. 14,102 Lakhs on unutilized grants.

Further, RRMI contribution of Rs. 39,753 Lakhs receivedfrom GoI and outstanding as at 31 March, 2019 issought to be converted into Capital Grant by bookadjustment.

However, as at 31 March 2019 the restructuring proposalwas pending for approval before the Ministry of Defenceand Ministry of Finance.

2 Whether there is any restructuring of an existing loanor cases of waiver/write off of debts/loans/ interest etc.made by a lender to the company due to the company’sinability to repay the loan?

If yes, the financial impact may be stated

3 Whether funds received/receivable for specific schemesfrom Central/State agencies were properly accountedfor/utilized as per its term and conditions?

List the cases of deviation.

Hindustan Shipyard Limited has received a fund of :

1) Rs. 45,736 Lakhs (Rupees Four Hundred FiftySeven Crores and Thirty Six Lakhs) forRefurbishment & Replacement of Machinery andinfrastructure for undertaking the construction ofLanding Platform Dock (LPDs) and

2) Rs. 20,000 Lakhs (Rupees Two Hundred Crores)as grant in aid from Government of India for repairand renovation of the damaged assets of the yardin hudhud Cyclone.




Capital grant of Rs. 20,000 Lakhs remained unutilizedfor the specific purposes. As per the accounting policy,Capital grants / subsidy are credited to capital reserveand retained till the requisite conditions are fulfilled.However, its utilization seems to be not virtual due topaucity of funds and it had been almost 4 ½ years sincethe hudhud cyclone disaster.

RRMI grant was, in fact, used for the purposes notstated in the Annexure to the sanction letter.

As on 20 March 2019 Rs. 31,700 Lakhs was utilized forShip Building and Ship Repairs works, Gratuitypayments, Yard running expenses etc.

RRMI expenditure claimed include the Input Tax Creditavailed on the supplies and services. There exists agap between the claim and the expenditure thuscapitalized / charged to P&L A/c. Input Tax Credit oneligible supplies and services does not form part ofcost, as it is being availed against the output tax liability.However, Rs. 309.89 Lakhs being the input credit availedon supplies and services was claimed as RRMIexpenditure.









65

Annexure C to the Independent Auditor’s Report

The Annexure referred to in paragraph 15 under ‘Report on Other Legal and Regulatory Requirements’ sectionof our report of even date

Independent Auditor’s Report on the Internal Financial Controls Over Financial Controls under clause (I) ofsub-section 3 of Section 143 of the Companies Act, 2013 (the “Act”)

1. In conjunction with our audit of the standalone financials statement of Hindustan Shipyard Limited (“the Company”)as at and for the year ended 31 March 2019, we have audited the internal financial controls over financialreporting (“IFCoFR”) of the Company as at that date.

Management’s Responsibility for Internal Financial Controls

2. The Company’s Board of Directors is responsible for establishing and maintaining internal financial controlsbased on the internal control over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of Internal Financial Controlsover Financial Reporting (‘the Guidance Note’) issued by the Institute of Chartered Accountants of India (“theICAI”). These responsibilities include the design, implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the orderly and efficient conduct of the Company’s business,including adherence to the Company’s policies, the safe guarding of its assets, the prevention and detection offrauds and errors, the accuracy and completeness of the accounting records, and the timely preparation ofreliable financial information, as required under the Act.

Auditor’s Responsibility

3. Our responsibility to express an opinion on the Company’s internal financial controls over financial reportingbased on our audit. We conducted our audit in accordance with the Standards on Auditing, issued by ICAI anddeemed to be prescribed under section 143 (10) of the Act, to the extent applicable to an audit of InternalFinancial Controls, and the Guidance Note issued by Institute of Chartered Accountants of India. Those Standardsand Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR were established and maintained and if such controlsoperated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and theiroperating effectiveness. Our audit of IFCoFR included and obtaining an understanding of IFCoFR, assessingthe risk that a material weakness exists, and testing and evaluating the design and operating effectiveness ofinternal control based on assessed risk. The procedures selected depend on the auditors’ judgment, includingthe assessment of the risk of material misstatement of the financial statements, whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the Company’s IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company’s IFCoFR is a process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordance with generally acceptedaccounting principles. A company’s IFCoFR includes those policies and procedures that :

a) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactionsand dispositions of the assets of the company;

b) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles, and that receipts and expenditures ofthe company are being made only in accordance with authorizations of management and directors of thecompany; and



c) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, ordisposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of IFCoFR, including the possibility of collusion or improper managementoverride of controls, material misstatements due to error or fraud may occur and not be detected. Also, projectionsof any evaluation of the IFCoFR to future periods are subject to the risk that IFCoFR may become inadequatebecause of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate.

Opinion

8. In our opinion, the Company has, in all material respects, maintained adequate IFCoFR as at 31 March 2019,based on internal control over financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI and the Company’s IFCoFRwere operating effectively as at 31 March 2019.









67



69

Annual Accounts2018-19



BALANCE SHEET AS AT 31-MARCH-2019

` in lakhsSl.No Particulars Note No. As at As at

31-Mar-2019 31-Mar-2018

I EQUITY AND LIABILITIESi Shareholders’ Funds

Share capital 1 30,199.22 30,199.22Reserves and surplus 2 (119,527.45) (123,150.98)

ii Capital Grant 3 A 20,000.00 20,000.00RRMI Fund 3 B 11,620.45 11,008.35

TOTAL (i+ii) (57,707.78) (61,943.41)iii Non-current Liabilities 4

Long term borrowngs 54,121.25 37,221.25 Other long term liabilities 31,071.04 40,742.86 Long term provisions 7,181.38 8,455.89

Total - Non-current Liabilities 92,373.67 86,420.00iv Current Liabilities 5

Short term borrowings 9,169.88 19,490.94 Trade payables 26,743.49 19,060.22 Other current liabilties 53,796.89 31,674.04 Short term provisions 10,661.78 12,627.24

Total Current Liabilities 100,372.04 82,852.44TOTAL (i+ii+iii+iv) 135,037.93 107,329.03

II ASSETSi Non-current Assets 6

Property, Plant and EquipmentTangible assets 12,716.87 13,076.88Intangible assets 0.65 2.71Capital work-in-progress 3,433.70 3,027.19Long term loans and advances 8,186.17 7,502.20Other non-current assets 2,601.04 3,998.32

Total - Non-current Assets 26,938.43 27,607.30ii Current Assets 7

Inventories 5,432.80 7,745.47Trade receivables 27,644.00 17,617.01Cash and Bank balances 26,573.70 18,619.06Short term loans and advances 7,615.80 5,818.84Other current assets 40,833.20 29,921.34Total - Current Assets 108,099.50 79,721.71

TOTAL (i+ii) 135,037.93 107,329.03Significant Accounting Policies and other Notes toAccounts forming part of Accounts 18Notes 1 to 7 form an Integral Part of Balance Sheet

For and on behalf of the Board of Directors As per our report of even date

For GR Kumar & Co LLP.Sd/- Sd/- Chartered Accountants

S V RAMBABU R Adm L V SARAT BABU, NM, IN (Retd) [Firm Reg. No. 004941S ]Director (Finance & Commercial) Chairman & Managing Director

& Chief Financial OfficerSd/- Sd/-

INAITULA BAIG CA SIVA SAI HARI BHASKAR NETICompany Secretary (Designated Partner)

Membership No. 204962Place : Visakhapatnam UDIN: 19204962AAAAAD4899Date : 26/07/2019



71

PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 MARCH 2019

` in lakhs

Sl.No: Particulars Note No. Year ended Year ended31-March-2019 31- March-2018

III INCOME

Turnover (Revenue from Operations) 8 59,490.70 64,477.57

Less: Taxes & Duties (5,906.06) (6,123.83)

Net turnover 53,584.64 58,353.74

Other Income 9 1,063.44 688.95

Total Income 54,648.08 59,042.69

IV EXPENSES

Materials Consumed 10 15,265.35 19,794.37

Sub-contracting and Other Direct Expenses 11 16,914.00 12,622.26

Employee Benefits 12 11,395.39 12,948.66

Other Expenses 13 3,426.57 4,036.79

Interest & Finance costs 14 1,298.89 1,572.95

Depreciation 474.50 475.59

Provisions and Losses (net) 15 (1,767.71) 61.77

Prior Period income (net) 16 (229.97) (138.45)

Total Expenditure 46,777.02 51,373.94

V Profit before Exceptional & Extraordinary Items and Tax (III-IV) 7,871.06 7,668.75

VI Exceptional Items - (Income) / Expenditure 17 4,247.53 5,569.50

VII Profit Before Extraordinary Items and Tax (V-VI) 3,623.53 2,099.25

VIII Extraordinary Items - Income / (Expenditure) - -

IX Profit Before Tax (VII-VIII) 3,623.53 2,099.25

X Income Tax for the year - 135.31

MAT - Credit entitlement - (135.31)

XI Profit / (Loss) for the period (IX-X) 3,623.53 2,099.25

XII Earnings per Equity Share (Basic) 120 70

Notes 8 to 17 form an Integral Part of Profit and Loss statement









NOTES FORMING PART OF THE BALANCE SHEET AS AT 31 MARCH 2019

I EQUITY AND LIABILITIES ` in lakhs

Note - 1 As at As at31-March-2019 31-March-2018

SHARE CAPITAL

Authorised

30,40,000 - Equity Shares of `1000 each(Previous year 30,40,000- Equity Shares of `1000 each) 30,400.00 30,400.00

Issued, Subscribed and fully paid-Up

30,19,922 Equity Shares of `1,000 each fully paid-up(Previous year 30,19,922- Equity Shares of `1000 each) 30,199.22 30,199.22

Total - Note : 1 30,199.22 30,199.22

Notes: Subscribed and paid-up share capital includes:Equity shareholder holding more than 5% of equity shares along withthe number of equity shares held is as given below:

Name of the shareholder As at As at31-March-2019 31-March-2018

Number of shares Number of shares

President of India (100%) 30,19,922 30,19,922

` in lakhs


RESERVES AND SURPLUSCapital Reserve

Balance in Capital Reserve 9.50 9.50

Deficit

Opening Balance (1,23,160.48) (1,25,259.73)

Add: Net Profit / (Loss) for the current period 3,623.53 2,099.25

Closing Balance (1,19,536.95) (1,23,160.48)

Total - Note : 2 (1,19,527.45) (1,23,150.98)

Note - 3 (A & B) As at As at31-March-2019 31-March-2018

3 A) Capital Grant

Hud Hud Cyclone Grant from GoI 20,000.00 20,000.00

3 B) RRMI Fund - Capital Expenditure funded through Naval Projects

Transfer from RRMI Advance - (Refer Sub-note:1) 12,583.27 13,687.21

Less: Depreciation and R & M expenditure of RRMI Assets 962.82 2,678.86

Total - 3 (B) 11,620.45 11,008.35

Total - Note : 3 (A + B) 31,620.45 31,008.35

Sub-note:

1 RRMI Expenditure incurred out of RRMI Advance upto year end has been accounted.



73

` in lakhs


NON-CURRENT LIABILITIES

Long-term Borrowings

Unsecured

Loan from Govt. for OPF Liability (Refer Sub-note:1) 16,900.00 -

GoI Loan in perpetuity 37,221.25 37,221.25

54,121.25 37,221.25Other Long-term Liabilities

Deposits 79.52 83.36

Trade Payables (EOL - OPF) - 6,900.00

Advances from Customers & Interest accrued thereon (Refer Sub-note:2) 498.58 1,417.96

Advance from GoI for RRMI (Refer Sub-note:3) 30,492.94 32,341.54

31,071.04 40,742.86Long-term Provisions

Provision for Employee Benefits

Gratuity 4,715.72 5,849.65

Leave Salary (Non-funded) 2,465.67 2,606.24

7,181.38 8,455.89

Total - Note : 4 92,373.67 86,420.00

Sub Note:

1) The said loan of Rs. 16900 lakhs has been sanctioned by GoI to liquidate legacy liabilities was received on 30 Mar 2019.The loan carries an interest rate of 10% per annum and repayable in 10 years and with a moratorium of 2 years forrepayment of principal and interest. As per the Goverment Sanction, it is stipulated that the fixed assets of the companyshall not be hypothecated without prior approval of the Government. in this regard, it is submitted to GoI that the Assetsof the company have been hypothecated to the banks towards cash credit facility.

2) Includes Net amount payable to ONGC of Rs. 484.65 Lakhs {Award Amount payable to ONGC of Rs. 4514 Lakhs(Principal amount of Rs. 2404 lakhs + Interest of Rs. 2110 lakhs) Less Award Amount Receivable from ONGC ofRs. 4029.35 Lakhs (Principal amount of Rs. 795.83 lakhs + Interest of Rs. 3233.52 lakhs)} in line with PMA Awards(2018)on Panna, BH - 22 /25 and IE & EL.

3) The said amount is unspent as on 31 Mar 2019 out of the total RRMI Advance of Rs. 45736 lakhs.



` in lakhs


CURRENT LIABILITIES

Short-term Borrowings

Secured loans

Cash Credit (Refer Sub-note : 1) 9,169.88 19,490.94

Trade Payables 26,743.49 19,060.22

Other Current Liabilities

Advances from Customers 37,314.48 14,577.17

Other Liabilities (Refer Sub-note : 2) 6,733.41 7,441.76

Deposits 489.00 395.11

Interest payable to GoI on RRMI Funds 9,260.00 9,260.00

53,796.89 31,674.04

Short-term Provisions

Provision for Employee Benefits

Gratuity 2,250.00 2,100.00

Leave salary 871.99 871.84

Other Provisions:

Liquidated Damages (Refer Sub-note : 3) 4,799.96 6,570.46

Provision for Future Losses 2,079.04 2,429.34

Guarantee Repairs 442.24 437.05

Provision for income tax 218.55 218.55

10,661.78 12,627.24

Total - Note : 5 1,00,372.04 82,852.44

Sub-notes:

1 Cash Credit facility from Indian Bank & Andhra Bank is secured by hypothecation of Property, Plant & Equipment andCurrent Assets of the Company

2 The said amount includes Rs. 2686.13 lakhs towards Pay / Wage Revision arrears (Wage Revision Arrears Rs. 1700lakhs - 2009 and Pay & Wage Revision Arrears Rs. 986.13 lakhs - 2017). The arrears towards Pay & Wage Revision(2017) has been considered w.e.f. 01 Apr 2018 as per GoI guidelines and the same would be implemented upon approvalfrom MoD (please refer Note-17).

3 Out of the said amount of Liquidated Damages Rs. 3859.08 Lakhs is for Shipbuilding and Rs 940.88 Lakhs is for Shiprepairs.



75

` in lakhs

II ASSETS


NON-CURRENT ASSETS

Property, Plant and Equipment :

Gross Block (Tangible) 21,459.79 21,981.79

Depreciation 16,929.67 16,886.06

Net Block- Tangible 4,530.12 5,095.73

Gross Block (RRMI) 11,368.20 10,339.28

Depreciation (RRMI) 3,181.45 2,358.13

Net Block- (RRMI Assets) 8,186.75 7,981.15

Gross Block (In-tangible) 306.43 306.43


Net Block- Intangible 0.65 2.71

Capital Works in Progress - -

Capital Works in Progress (RRMI) 3,433.70 3,027.19

Total Capital work-in-progress 3,433.70 3,027.19

16,151.22 16,106.78

Long term Loans and Advances (unsecured)

Deposits with Customs, Port Trust and other Govt. Agencies 456.06 372.54

Advance to Suppliers 51.36 51.36

Income Tax deducted at source 2,841.88 2,277.97

Advance Tax 99.08 99.08

MAT Credit entitlement (Refer sub-note:1) 4,701.15 4,701.15

Others 36.64 0.10

8,186.17 7,502.20

Other Non-current Assets

Trade Recievables 2,015.73 3,720.37

Less: Provision for Bad debts (916.13) (3,050.98)

Accrued Income (OPF) (Refer sub-note-2) 1,501.44 3,328.93

2,601.04 3,998.32

Total - Note : 6 26,938.43 27,607.30

Sub-notes:

1) MAT credit entitlement Rs.4482.60 lakhs paid in 2010-11 is eligible for carry forward upto 2020-21, Rs.83.24 lakhsaccounted in 2016-17 is eligible for carry forward upto 2026-27 and Rs.135.31 lakhs accounted in 2017-18 is eligible forcarry forward upto 2032-33.

2) Accrued Income (OPF) on Ravva platforms pending arbitration post consideration of effect of PMA Awards(2018) onPanna , BH - 22 /25 and IE & EL of Rs. 1827.49 lakhs -Refer subnote-1 of Note-17



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77

` in lakhs


CURRENT ASSETSInventories (Refer Sub-note: 1)Steel 1,679.21 1,643.08Stores & Spares , equipment and other Materials 2,633.49 4,859.82Timber 11.56 15.29Materials-in-Transit and under inspection 1,088.16 1,028.57Steel Cut Pieces on shop floor and Scrap (Refer Sub-note: 2) 74.42 252.75

5,486.84 7,799.51Less : Provision for : Obsolescence of materials 54.04 54.04

5,432.80 7,745.47Trade Receivables

UnsecuredDebts outstanding for more than 6 months:Considered good (Refer Sub-note:3) 14,830.26 11,075.05Considered doubtful - -

14,830.26 11,075.05Other debts, considered good 12,813.74 6,541.96

27,644.00 17,617.01Cash and Bank balances

Cash on Hand 1.88 2.22Balances with scheduled banks in:Term and other Deposit accounts 17,505.30 14,473.32Current accounts 9,066.52 4,143.52

26,573.70 18,619.06Short-term Loans and Advances

Employees 22.10 30.07Suppliers of materials & services 6,598.82 5,064.30Others 1,043.04 822.17Prepaid Expenses 79.05 29.82

7,743.01 5,946.36Less : Provision for Doubtful Advances 127.21 127.52

7,615.80 5,818.84Other Current Assets

Interest Accrued on term deposits 264.58 78.01Accrued Income (Refer Sub-note: 4) 40,568.62 29,843.34

40,833.20 29,921.34

Total - Note : 7 1,08,099.50 79,721.71

Sub-notes:

1 Inventories are as valued, verified and certified by the Management.

2 Quantity of steel cut pieces on shop floor and Scrap is based on technical estimate.

3 Refer Sl.No. 12 of Note.18-B of Notes forming part of Accounts of 2018-19.

4 Accrued Income is in respect of Ship Building, Ship Repairs, Submarine and VAT refund.



Note - 8 Year ended Year ended31- March-2019 31- March-2018

Turnover (Revenue from Operations)

a) Sale of products

Shipbuilding - Contractual Income 14,547.00 30,398.24

b) Sale of services -

services 11,933.70 11,044.47

Dry dock hire charges 40.31 201.84

Wet basin hire charges - 268.02

DDSR Other services 279.49 2,869.94

Ship repair income 12,253.50 14,384.27

c) Submarine Retrofit 31,717.73 19,118.61

d) Other operating revenue

- Misc. Works - Shipbuilding 80.65 92.59

- Sale of scrap 891.82 483.86

Other Operating income 972.47 576.45

Total - Note : 8 59,490.70 64,477.57

` in lakhs


(a) Other Income

Interest from banks & others Rs. 574.07

Less: Interest payable to GoI (Refer Sub-note No.1) Rs. 352.71 221.36 282.57

Rent (Net of GST of Rs. 23 Lakhs) 157.32 150.83

Fines and Forfeitures 59.53 173.41

Foreign Exchange variation 105.55 -

Miscellaneous Receipts 519.68 82.14

Total - Note : 9 1,063.44 688.95

Sub-notes:

1 Interest payable on Advances received from Indian Navy (VC-11184) Rs. 352.71 Lakhs.

` in lakhs

NOTES FORMING PART OF THE PROFIT AND LOSS STATEMENTFOR THE YEAR ENDED 31-March-2019



79

` in lakhs

Note - 10 Year ended Year ended31-March-2019 31-March-2018

Materials Consumed

Steel 361.15 540.92

Stores & Spares 2,172.17 957.82

Timber 4.79 15.66

Direct Materials, Machinery & Equipment used in

Ship Construction 5,370.70 15,127.26

Shiprepair 155.48 2,928.89

Submarine Retrofit 7,147.48 120.18

15,211.77 19,690.72

Add: Stores procurement expenses 53.58 103.64

Total - Note : 10 15,265.35 19,794.37

` in lakhs


Sub-contracting & Other Direct Expenses

Sub contract & off-loaded job expenses in :


Ship Repairs 1,617.34 2,599.71

Submarine Retrofit 8,351.67 5,738.76

Other Direct Expenses in :


Ship Repairs 184.57 351.14

Submarine Retrofit 859.46 1,097.53

Builders Risk Insurance in Ship Constuction 75.12 91.02

Total - Note : 11 16,914.00 12,622.26

` in lakhs


Employee Benefits

Salaries, Wages, Allowances etc., 8,507.95 8,994.91

Contribution to Provident Fund and other funds 879.51 936.64

Gratuity 920.79 2,032.07

Leave salary 493.48 239.38

Expenses on Training, Stipend etc. 69.86 46.56

Employees Welfare Expenses 523.80 699.10

Total - Note : 12 11,395.39 12,948.66



` in lakhs


Other expenses

Power, Fuel and Water (net of recoveries) 741.61 960.60

Rates and taxes (including customs duty on scrap sales) 66.86 68.06

Fire and Other Insurance 60.67 69.45

Rent 400.74 200.09

Repairs and Maintenance to :

Plant and Machinery 622.43 670.36

Buildings 307.04 347.36

Other Assets 21.36 28.47

Printing and Stationery 43.45 20.63

Local Conveyance charges 115.37 250.34

Travelling Expenses 40.85 63.92

Communication Expenses 15.73 14.53

Advertisement and Publicity 23.52 21.10

Demurrage Charges 0.26 0.57

Directors’ Fees and Expenses:

Directors’ Fees 0.18 0.33

Travelling Expenses 9.07 12.36

Auditors’ Remuneration :

Statutory Audit 2.50 2.20

Expenses 0.30 0.27

Foreign Exchange variation - 181.07

Consultant & Legal expenses 19.99 53.87

Expenses on Security 517.64 539.18

Expenses on Fire Service 135.31 140.15

Miscellaneous Expenses 281.69 391.88

Total - Note : 13 3,426.57 4,036.79

` in lakhs


Interest & Finance Charges

Interest on :

Bank Loans & Cash Credit 1,144.91 1,213.73

Others 9.97 61.23

Bank Charges 144.01 297.99

Total - Note : 14 1,298.89 1,572.95



81

` in lakhs


Provisions made:Liquidated Damages 754.53 -Obsolescence of Materials - -Reduction in SR Bills 239.05 2,403.00Bad & Doubtful debts - -

Provision for Future losses written off(net) (350.29) (470.91)Provisions written off (2,411.00) (1,870.32)

Total - Note : 15 (1,767.71) 61.77

` in lakhs


Prior Period AdjustmentsA Income

RRMI Adjustments of earlier years 253.65 -Capitalization of Robotic profile cuting m/c - 141.80Tender fees and other misc items. 31.85 17.88

285.50 159.68B Expenditure

SC Direct Expenses - 2.21Materials, Freight, C & F charges - 16.68Depreciation 55.53 -Miscellaneous - 2.34

55.53 21.23

Net Expenditure / (Income) - Total Note: 16 (229.97) (138.45)` in lakhs


Exceptional itemsPenalty levied by ICG - 5 IPVs 1,007.75 -Effect of PMA Awards on HSL Vs ONGC case - Refer Subnote -1 2,250.98 -Claims payable to Essar Oil Ltd - 5,134.75Reduction in Inventory (scrap) 187.18 286.51(Profit) / Loss on sale of Assets (274.50) (190.76)Property, Plant and Equipment written off - -Interest on Gratuity - 339.00R & M Expenditure out of RRMI fund 139.50 320.73Depreciation on RRMI Assets 823.32 2,358.13RRMI Asset Grant (962.82) (2,678.86)Differential Interest on PF 90.00 -Pay / Wage Revision Arrears - (Refer Sub note-2 of Note-5) 986.13 -

Total - Note : 17 4,247.53 5,569.50

Subnotes1 Net of Rs. 3783.45 lakhs (Award Amount payable to ONGC of Rs. 4514 Lakhs Less Provision in books of Rs. 730.55 lakhs) and

Rs. 1532.47 Lakhs (Award Amount receivable from ONGC Rs. 4029.35 Lakhs Less amount already considered in books ofRs. 2496.88 lakhs) post PMA Awards(2018) on Panna, BH - 22 /25 and IE & EL - (refer sub note-2 of note-4).



Note – 18

Notes Forming Part of the Accounts for the year ended 31st March 2019

A. ACCOUNTING POLICIES

1. ACCOUNTING CONVENTIONS:

The financial statements are prepared under the historical cost conventions in accordance with Generally AcceptedAccounting Principles in India and provisions of the Companies Act, 2013. Generally, revenues are recognized on accrualbasis with provisions made for known losses and expenses.

2. ASSETS:

(a) Property, Plant & Equipment:

Property, Plant & Equipment are stated at cost less accumulated depreciation. Cost of acquisition of Property, Plant &Equipment is inclusive of freight, duties, taxes (net of VAT up to 30 Jun 2017 / net of GST w.e.f 01 Jul 2017), incidentalexpenses relating to cost of acquisition, 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 procurementof software, acquisition / development of software and up-gradation / enhancement of existing software resulting inenhancement of economic benefits.

However all embedded software without separate value and included in hardware is capitalized along with cost of hardware.

Property, Plant & Equipment, Capital work-in-progress and capital advances are segregated as non-current assets.

3. INVENTORIES:

i) Steel, Timber, Spares and other stores are valued at Weighted Average Cost or net realizable value whichever islower. 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 whicheveris lower under specific identification and FIFO respectively.

iii) Cost includes expenses of procurement including all taxes and duties other than VAT up to 30 Jun 2017 / net ofGST w.e.f 01 Jul 2017.

iv) Scrap is valued at estimated realisable value.

4. INCOME:

Income is recognized in accounts:

A. i) In respect of ships under construction and submarine refit activity, on the basis of percentage completion method,taking into account the proportion that the contract cost incurred for work performed up to the reporting date bearsto the estimated total contract cost for completion.

Cost for the above purpose includes value of direct materials including Machinery and other ship borne equipmentissued for specific ship, direct labour, direct expenses and general overheads excluding administrative overheadsand overheads attributable to idle time.

ii) In respect of ships delivered and submarine refits completed during the year at the balance price including claimsfor extra works and cost escalation realizable from owners.

iii) In respect of ship repair contracts, work done against orders extending up to 12 months is recognized at cost orrealizable value, whichever is lower. Profit if any is recognized in the year in which repair is completed.

iv) In respect of ship repair contracts extending beyond 12 months, is recognized as per the policy followed forshipbuilding contracts as stated above.

B. Income from other activities is accounted for on accrual basis by adopting proportionate completion method.

C. Income is inclusive of Excise Duty, Sales Tax and Service Tax up to 30 Jun 2017 /GST w.e.f 01 Jul 2017 and is net ofRebates and other Deductions under the respective contracts.



83

D. Claims in respect of Insurance are accounted for on acceptance basis taking into account the acceptances receivedwithin 15 days of the end of the financial year.

E. The income in respect of all the activities is captioned as “Turnover”.

5. GOVERNMENT GRANTS:

i) Capital grants / subsidy:

Capital grants / subsidy relating to specific assets are reduced from the gross values of assets and capital grants forproject capital subsidy are credited to capital reserve and retained till the requisite conditions are fulfilled.

ii) Revenue grants / subsidy:

a) Grant-in-aid received from Government of India for implementation of Voluntary Retirement Scheme is matchedwith 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 thebasis of percentage completion of the respective ships.

c) All other revenue grants are credited to profit & Loss Account.

6. EXCISE DUTY / GST :

Excise Duty wherever applicable up to 30 Jun 2017 and GST w.e.f 01 Jul 2017 is accounted for as and when the productsare cleared from the yard.

7. DEPRECIATION:

Depreciation is provided for under straight-line method in accordance with Schedule II of the Companies Act, 2013.

Depreciation on additions/disposals made during the year is charged pro-rata by grouping them on quarterly basis.

Intangible assets will be amortized over a period of 5 years.

Addition to Assets Costing Rs. 5000/- or less are depreciated at 100%.

8. BORROWING COSTS:

a) Borrowing Costs relating to the acquisition/construction of qualifying assets are capitalized until the time all the substantialactivities necessary to prepare the qualifying assets for their intended use are complete.

b) A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

c) All other borrowing costs are charged to revenue.

9. EMPLOYEE BENEFITS:

(i) Defined Contribution Plan

Employee Benefits in the form of Employee Pension Fund is considered as Defined Contribution plan and the contributionsare charged to the Profit & Loss Account of the year when the contributions to the said fund are due.

(ii) Defined Benefit Plan

Retirement Benefit in the form of Gratuity, is considered as Defined Benefit Obligation and is provided for on the basis ofan actuarial valuation using the projected unit credit method as at the date of Balance Sheet. Employee Benefit in theform of Employee Provident Fund is considered as Defined Benefit plan and the contributions are charged to the Profit &Loss Account of the year when the contributions to the said fund are due.

(iii) Other Long Term Benefits

Long-Term Compensated Absences are provided on the basis of an actuarial valuation using the Projected Unit CreditMethod as at the date of Balance Sheet.

Actuarial gain/losses, if any, are immediately recognized in the Profit & Loss Account.



10. EMPLOYEE SEPARATION COSTS:

Compensation to Employees who have opted for Retirement under the Voluntary Retirement Scheme of the Company ischarged to the Profit and Loss account in the year of exercise of option, net of grant in aid received / receivable in theyear of payment.

11. PROVISION FOR FUTURE LOSSES:

In the case of Ship Building and submarine retrofit activities where current estimates of total contract cost exceeds theexpected realizable value, provision is fully made for such anticipated loss in accordance with AS 7 issued by the Instituteof Chartered Accountants of India.

12. PROVISION FOR SUNDRY DEBTORS:

Provision is made for all debts considered doubtful of recovery having regard to the following consideration –

a) Time barred debts from the Government / Government departments / Government companies are generally not treatedas doubtful debts.

b) Provision for bad and doubtful debts is generally made for debts outstanding for more than three years, excepting thosewhich are considered realizable based on a case to case basis.

13. FOREIGN EXCHANGE TRANSACTIONS:

Assets and liabilities in foreign currencies are translated at rates of exchange prevailing as on the Balance Sheet date.Gains/losses arising out of fluctuations in exchange rates both on settlement and on conversion of liabilities are adjustedto revenue.

14. NORMAL OPERATING CYCLE:

(i) “Normal operating cycle is project-wise as the time period from the date of effectiveness of the contract to the date ofcompletion of the project.

(ii) “Completion of Project” is till the date that all the issues between the parties are mutually settled by them other thanresorting to legal means.

15. Capital Expenditure Funded through Naval Ship Projects, i.e. Refurbishment and Replacement of Machinery andInfrastructure (RRMI):

The Capital Expenditure funded through Naval Ship Projects for acquisition of depreciable Property, Plant & Equipmentare treated as deferred income which is recognized in the profit and loss statement on a systematic and rational basisover the useful life of the asset, i.e., such amounts are allocated to income over the periods and in the same proportionin which depreciation on those assets is charged.

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 basiskeeping 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/transferredto other heads on functional basis is shown separately except direct labour.



85

B. NOTES ON ACCOUNTS (`. in lakhs)

2018-19 2017-18

1. Contingent liabilities

1.1 Irrevocable letters of credit outstanding

1.2 Counter guarantees given to banks for guarantees issued on behalf of the

company

1.3 Demands raised against the company by various authorities, contested at

various courts, appellate authorities etc. and not provided for:

1.3.1 Penal interest on belated remittances of Provident Fund contributions during

the period from May 2002 to Feb 2005, contested u/s 7(i) of EPF & MP Act,

1952. HSL had approached Hon’ble High Court of Andhra Pradesh after

dismissal of appeal by PF Appellate Tribunal. The Hon’ble High Court has issued

stay orders on PF Appellate Tribunal order subject deposit of a sum of `35.00

lakhs by the company. Accordingly, HSL had deposited the said amount.

Presently, the case is pending in Hon’ble High Court of Andhra Pradesh.

1.3.2 (a) ESI dues in respect of ‘C’ series workmen for the period from 1-4-1998 to

30-9-2000 together with interest thereon (`6.64 lakhs paid under protest grouped

under deposit recoverable).

(b) ESI dues in respect of temporary workmen for the period from April, 1998 to

Oct., 1999, contractors contribution for the period from Apr., 1985 to March,

1993.

1.3.3 Service tax demand in respect of INS Sindhukeerthi

1.3.4 Service tax demand in respect of Ship Repairs

1.3.5 VAT demands in respect of Ship Repairs

1.3.6 Demands of customers & suppliers of goods and services.

1.3.7 Demands in respect of service matters of employees having financial impact.

Total [1.3]

1.4 Claims against the company, which are under arbitration and not provided for:

1.4.1 Claims of Essar Oil Limited (EOL) towards OPF works (net of provision of Rs.

10800 lakhs). In this regard, the amount awarded by the sole arbitrator in the

dispute between HSL & ONGC (pertaining to EOL payments has not been

considered). The provided amount of Rs. 10800 lakhs has been paid to EOL as

directed by High Court for obtaining withdrawal of attachment of Property, Plant

and Equipment and grant of interim stay and to be heard on the revised petitions

of HSL.

1.4.2 a) On rejection of claims towards L.D. and other claims by HSL, M/s Good

Earth Maritime Ltd., (G.M.L.) invoked arbitration clause for the vessel No. VC

9909.00 15206.49

48245.72 13034.47

109.78 109.78

103.21 99.23

169.61 169.61

620.98 2229.59

180.93 180.93

744.00 692.00

9392.62 8689.36

1403.55 1447.53

12724.68 13618.01

19346.46 19346.46



2. As per Accounting Standard 15 ’Employees Benefits’, the disclosure of Employee Benefits as defined in the Accounting

Standard are given below:

Defined Contribution Plan

Contribution to Defined Contribution plan, recognized as expense for the year are as under: (`.in lakhs)

2018-19 2017-18

Employer’s Contribution to Pension Fund 185.86 198.34

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.

Details Gratuity Earned Sick(Funded) Leave Leave

Encashment (Unfunded)(Unfunded)

(`. in lakhs)

11115, VC 11116, VC 11117, VC-11136, VC-11137, VC-11138, VC-11139 and

VC-11141 the same is under arbitration.

b) In respect of Vessel No. VC 11118, VC 11138 to VC 11139 which were

delivered and VC 11140 which is under construction, no provision towards LD

is made, since the same is not applicable as per Contracts.

T o t a l [1.4]

130372.59 107242.63

149719.05 126589.09

Defined Benefit obligation at beginning of the year. (Current Year) 7956.13 2881.98 596.10

(Previous year) 7618.04 3327.87 681.32

Interest Cost (Current Year) 542.72 220.18 -

(Previous year) 460.42 200.10 -

Current Service Costs (Current Year) 241.37 88.90 (22.15)

(Previous year) 86.76 205.71 (85.22)

Benefits Paid (Current Year) (1704.90) - -

(Previous year) (1694.22) (770.50) -

Actuarial loss/(gain) on obligation (Current Year) (72.60) (427.35) -

(Previous year) (458.44) (81.20) -

Defined Benefit obligation at year end (Current Year) 6962.71 2763.72 573.95

(Previous year) 7956.13 2881.98 596.10

I. Reconciliation of opening and closing balances of Defined Benefit obligation. (`. in lakhs)



87

II Reconciliation of opening and closing balances of fair value of plan assets (`. in lakhs)

Details 2018-19 2017-18

Fair value of plan assets at beginning of the period. 6.48 6.24

Expected return on plan assets 0.51 0.49

Contribution 1704.91 1694.23

Benefits paid (1704.91) (1694.23)

Actuarial (loss)/gain on obligation (balancing figure) (0.26) (0.25)

Fair value of Plan Assets as at the end of the period 6.73 6.48

III Reconciliation of fair value of assets and obligations as at 31/03/2019 (`.in lakhs)

Gratuity Leave Sick LeaveEncashment (Unfunded)

(Unfunded)

Fair value of plan assets (Current Year) 6.73 -

(Previous year) 6.48 - -

Present value of obligation (Current Year) 6962.71 2763.72 573.95

(Previous year) 7956.13 2881.98 596.10

Amount recognized in Balance Sheet (Current Year) 6965.72 2763.72 573.94

(Previous year) 7949.65 2881.98 596.10

IV. Expenses recognized during the year (in the statement of Profit & Loss Account) (`.in lakhs)

Description Gratuity Leave Sick(Funded) Encashment Leave

(unfunded) (Unfunded)

Current Service Cost (Current Year) 241.37 88.90 -

(Previous year) 86.76 205.71 -

Interest Cost (Current Year) 542.72 220.18 -

(Previous year) 460.42 200.10 -

Expected return on plan assets (Current Year) (0.51) - -

(Previous year) (0.49) - -

Actuarial (gain)/loss (Current Year) (72.34) (427.35) -

(Previous year) (458.19) (81.20) -

Expenses recognized in the statement of P&L a/c (Current Year) 920.79 493.48 -

(Previous year) 2032.07 324.61 (85.22)



V. Investment Details (Percentage invested)

VI. Principal Actuarial Assumptions

Gratuity (Funded)(%) Leave Encashment (Unfunded)(%)

31-03-2019 31.03.2018 31-03-2019 31.03.2018

Discount Rate 7.49 7.64 7.49 7.64

Salary escalation rate 7.00 7.00 7.00 7.00

Attrition rate 1.00 1.00 1.00 1.00

Expected rate of return on plan assets 7.90 7.90 - -

Salary escalation by taking into account inflation, seniority, promotion and other factors. Attrition rate by reference to pastexperience and expected future experience and includes all types of withdrawals other than death but including those due todisability.

Discount rate has been determined by reference to market yields on the Balance Sheet date on Govt. Bonds of Term consistentwith estimated term of the obligations.

As per the enterprise’s accounting policy actuarial gains and losses are recognized immediately during the same year itself.

The fact that Provident Fund element is also to be included while computing relevant salary for encashment of leave has beentaken into account.

The above information is certified by the Actuary.

(`in lakhs)

2018-19 2017-18

Employer’s Contribution to Provident Fund 693.65 738.30

The Company’s Provident Fund is exempted under Section 17 of Employees’ Provident Fund Act, 1952. The conditions forgrant of exemption stipulate the employer shall make good deficiency, if any, in the interest rate declared by the Trust vis-à-visstatutory 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 Employerneeds to be treated as Defined Benefit Plan. The fund had an Interest shortfall in 2018-19 which was met by the Employer(Refer Note-17 of P&L Statement). In regard to any future obligation arising due to interest shortfall (i.e., Government interest tobe paid on Provident Fund Scheme exceeds rate of interest earned on Investments) pending the issuance of guidance notefrom the Actuarial Society of India, the Company’s Actuary has expressed his inability to reliably measure the same.

Description Gratuity as on 31.03.19 Gratuity as on 31.03.18

GoI Securities - -

Others (T.D.R.s) - -

Total : - -



89

SEGMENT REPORT

The company operates in Shipbuilding, Ship repair and Sub-marine Retrofit business segments. Information in respect ofthe said segment as required by AS 17, issued by the Institute of Chartered Accountants of India is given hereunder.

(`. in lakhs)

Ship Ship Retrofit Un-allocated Totalbuilding repairs

Segment Income:

Sales 13115.81 10415.88 29173.59 - 52705.28

Taxes collected 1511.84 1837.62 2,544.14 - 5893.60

Other operating income (scrap sales) 445.91 445.91 - - 891.82

15073.56 12699.41 31717.73 - 59490.70

Other Income 19.86 8.08 137.14 898.36 1063.44

Total Income 15093.42 12707.49 31854.87 898.36 60554.14

Segment Expenditure:

Materials (net of transfers) 6902.95 1170.54 7191.87 - 15265.36

Direct Expenses 5640.39 1801.91 9471.70 - 16914.00

Direct Labour 1357.20 116.56 318.04 - 1791.80

Service Tax, Sales Tax & Excise Duty 1524.30 1837.62 2544.14 - 5906.06

Total Segment expenditure 15424.84 4926.63 19525.75 - 39877.22

Segment Result -331.42 7780.86 12,329.12 898.36 20676.92

Overheads 7130.33 1459.78 1034.43 5179.02 14803.55

Provisions and Prior period Adjustments (989.25) (756.32) 0.00 (252.12) (1997.69)

Extraordinary & Exceptional items - - - 4247.53 4247.53

Net Segment Result (6472.50) 7077.41 11294.69 (8276.07) 3623.53

Taxes - - - - -

Total Result (6472.50) 7077.41 11294.69 (8276.07) 3623.53

Other information

Segment Assets 53446.96 22413.45 21245.86 37931.66 135037.93

Accumulated Losses - - - (119527.45) (119527.45)

Segment Liabilities 51819.63 8228.19 11270.15 183247.40 254565.38

Capital Expenditure - - - 1573.97 1573.97

Depreciation 354.27 46.75 73.48 - 474.50

Non-cash expenditure other than Dep. - - - - -

Notes:

i) All the business segments were located in one premises at Visakhapatnam.

ii) Most of the assets / liabilities, expenses and income are identified segment wise. Common unidentified items areapportioned on a rational basis to the extent possible.



2018-19 2017-18

4 Information in respect of related parties in terms of AS 18, issued by theInstitute of Chartered Accountants of India are:

a) Related parties: Key Management Personnel:

i) R Adm L.V.SaratBabu, IN (Retd), Chairman & Managing Director .

ii) Cmde A.S. Mitra, IN (Retd), Director (Shipbuilding)up to 14 Feb 2019.

iii) Cmde PHM Salih, IN (Retd), Director (Corporate Planning &Personnel) up to 18 May 2018.

iv) Cmde Hemant Khatri, IN (Retd), Director (Strategic Projects).

v) Cdr J.P. Gupta, IN (Retd), Director (Corporate Planning &Personnel) from 29 Nov 2018.

vi) Shri S.V.Rambabu, Director (Finance & Commercial)from 12 Dec 2018.

b) Details of transactions carried out with the above stated related parties:

Remuneration paid during the year( In lakhs) 104.41 118.33

5 a) Net profit/(Loss) as per profit and loss account ( In lakhs) 3624 2099

b) Weighted average number of equity shares used as 3019922 3019922Denominator for calculating EPS

c) Earnings per share: Profit/(Loss) – Basic 120 70

6 As per technical evaluation, there is no impairment in the carrying cost ofcash generating units of the company in terms of Accounting Standard(AS 28), issued by the Institute of Chartered Accountants of India. - -

7 The estimated cost of completion of vessels under construction as at31 Mar 2019 has been revised to `1,07,595 lakhs from `1,37,894 lakhsas at 31.3.2018. 107595 137894

8. (a) Materials Consumed

Description Unit 2018-19 2017-18

Qty Rs Lakhs Qty Rs.Lakhs

Steel M.T 1049 361.15 1250 540.92

Pipes Meters 9747 92.33 8333 55.74

Paints Litres 15392 74.11 22728 70.89

Pipe Fittings Nos. 17194 316.63 18809 228.53

Ship Mach. &Equipt. 5370.70 15127.26

Ship Repair Materials 155.48 2928.89

Retrofit Materials 7147.48 120.18

Others 1693.90 618.31

Total 15211.78 19690.72



91

(b) Break up of Materials Consumed: ` In lakhs

2018-19 2017-18

i) Value of all Imported Materials including components and spare parts consumedduring the year. 9204.11 7284.31

ii) Value of all Indigenous Materials including components and spare parts consumedduring the year. 6061.24 12808.91

iii) Percentage of item (i) to total consumption. 60.29% 36.25%

iv) Percentage of item (ii) to total consumption. 39.71% 63.75%

(c) Expenditure and Earnings in Foreign Currency: ` In lakhs

2018-19 2017-18

1.1 i) Royalty, Know-how and Professional Consultancy fees - -

ii) Travelling Expenses 0.71 2.39

iii) Others 5531.57 4073.81

1.2 CIF value of imported materials, components & spare parts and capital goods. 9077.73 7387.42

2 Earnings in Foreign Currency from ship repair activity - -

(d) Details of Remuneration to Chairman & Managing Director and other whole-time Directors:

(` in lakhs)

S.No Particulars 2018-19

i. RAdm L.V.Sarat Babu, IN (Retd.) , Chairman & Managing Director 31.50

ii. Cmde A.S. Mitra, IN (Retd), Director (Shipbuilding) up to 14 Feb 2019. 22.33

iii. Cmde PHM.Salih, IN (Retd), Director (Corporate Planning & Personnel) up to 18 May 2018. 2.21

iv. Cmde Hemant Khatri, IN (Retd), Director (Strategic Projects). 31.33

v. Cdr.J.P.Gupta, IN (Retd), Director (Corporate Planning & Personnel) from 29 Nov 2018. 8.90

vi. Shri. S.V.Rambabu, Director (Finance & Commercial) from 12 Dec 2018. 8.14

Total 104.41



9. As per AS-29 relating to Provisions – the movement of provisions in the books of account is as follows:

` In lakhs

Nature of provision Opening Provision made Utilisation / ClosingBalance during the year Reversal Balance

during the year

Provision for Gratuity 7950 921 1905 6966

(Previous Year) 7612 2106 1768 7950

Provision for Leave Salary 3478 493 633 3337

(Previous Year) 4010 324 856 3478

Provision for Liquidated Damages 6570 705 2476 4799

(Previous Year) 8913 0 2343 6570

Provision for Future Losses 2429 0 350 2079

(Previous Year) 2900 0 471 2429

Provision for Guarantee Repairs 437 83 78 442

(Previous Year) 188 317 68 437

Provision for Doubtful Debts /Reductions in SR bills 3051 1332 3466 917

(Previous Year) 1951 2403 1303 3051

Provision for Doubtful Advances 127 0 0 127

(Previous Year) 127 0 0 127

10. Particulars of leasehold lands from Visakhapatnam Port Trust.

Sl.No. Particulars Area Lease Year of Amount Remarks(in Acres) period Expiry (Rs. Lakhs)

A. Shipbuilding yard 55.133 99 2039 0.52

B. Wet Basin 11.823 99 2065 11.90

C. Drydock 15.290 99 2065 30.78

D. Shipbuilding yard ext. 16.000 99 2053 16.10

E. Water front structure 2.250 30 2044 4.53

F. Water front structure 0.090 30 2044 0.43

G. Shipbuilding yard extn. 12.600 30 2044 51.02

H. Steel stock yard and hull shop 3.238 2044 13.42

I. Dolphin jetty 0.387 99 2065 1.28

J. 132/11 kv substation 0.476 2.31 Requested for Extension.

K. Housing Estate 1 132.12 99 2074 0.10

L. Housing Estate 2 7.083 65 2040 0.01

M. Addl. Housing colony 2.697 10 2006 15.43 Requested for Extension.

N. Commercial complex 0.165 65 2040 0.17

Total 259.352



93

11. (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 as the same is pending for formal approval from GoI, no provision was made

towards the said interest of Rs 42.18 Cr.

(b) No provision is also made towards notional interest of Rs. 141.02 Cr on RRMI funds utilized for ship construction

& repair works and for payment of retirement benefits 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.

12 a) Consequent to delay by M/s.GML in releasing of 7th Stage payments of Rs.13.06 Cr of VC 11140 in May 2014

and also sourcing of balance materials and equipment as per contract required for completion of vessel, the

construction activities on VC-11140 have been kept in abeyance

b) GML has made several attempts to proceed with the further construction of the vessel and had put up proposals

involving international buyers to take possession of the vessel upon completion.

c) In this regard, as the vessel is still under the possession of the company and a Memorandum of Understanding

(MoU) between HSL and GML for closure of related issues is in process for finalization as on 31 Mar 2019, the

position in the Books is maintained as Status-quo.

13 As the company was not in a position to fund the Gratuity Trust from its own sources, the company sought financial

assistance from GoI for an amount of Rs 221.49 Cr to fund the Gratuity Trust (as per Actuary Valuation) in the year

2015-16 and to replenish the RRMI Funds utilized for payment of gratuity. The same is yet to be materialized.

14 The proposal for revised Financial Restructuring to improve the Networth of the Company for an amount of Rs. 465 Cr

without any cash flow is under consideration of GoI.

15 The information in respect of vessels under construction as per AS-7 has not been disclosed in line with exemption

accorded vide Ministry of Corporate Affairs Notification dated 04 Sep 2015.

16 HSL procured assets worth Rs 39.73 Cr under Infra Contract of INS Sindhukeerthi which is shown as liability to Navy

in the books. The said amount would be amortized against future submarine refit contracts as per the provisions of the

Sindhukeerthi contract.

17 Estimated amount of contracts remaining to be executed on Capital Account as on 31 Mar 2019 is Rs. 19.04 Cr.

18 GoI sanctioned a loan of Rs. 169 Cr for clearing legacy liabilities. The said loan carries an Interest rate of 10% per

annum and a period of 10 years and with a moratorium of 2 years for payment of interest and principal. A proposal has

been submitted to the Ministry to consider the rate of Interest at 4% p.a.



19 With regard to Pay and Wage Revision (2017), Acturial Valuation of Gratuity and Leave salary for the revised Pay &

Benefits would be obtained in 2019-20 upon approval of Presidential Sanction.

20 In respect of refit of INS Sindhuvir, the balance commitment for the contracts entered with Russian Company,

M/s.Zvyzdocka is USD 8.63 Millions (Rs.60 Cr approx.).

21 Reconciliation of balances as per price stores ledger and Bin Cards is a continuous process.

22 Advances and Provisional Liabilities include Rs.61.56 Cr & Rs.79.55 Cr respectively for Purchases that remain

unadjusted, pending link-up between the same.

23 Balances of Debtors / Creditors are subject to confirmation / reconciliation.

24 An amount of Rs. 3.36 lakhs has been incurred towards various CSR activities in 2018-19.

25 Previous year’s figures have been regrouped / rearranged wherever necessary.









95

CASH FLOW STATEMENT FOR THE YEAR ENDED 31-MARCH-2019` in lakhs

Particulars Year ended Year ended31-March-2019 31-March-2018

A. Cash flow from operating activities:Net Profit/(loss) 3,623.53 2,099.25Extra-ordinary Items & Exceptional Items 4,247.53 5,569.50Prior period Expenditure / (Income) net (229.97) (138.45)FE variation Expenditure / (Income) (105.55) 181.07Net Profit/(loss) before Extraordinary, Prior perioditems & FE variation 7535.55 7711.37

Adjustments for:Depreciation 1,353.34 2,833.72 Interest & Finance charges 1,298.89 1,572.95Interest received (221.36) (282.57)Loss/(profit) on sale of fixed assets (274.50) (190.76)

Operating Cash flow before working capital changes,Extraordinary & Prior Period items 9,691.91 11,644.71

Exceptional & Extra ordinary items 4,247.53 5,569.50Prior Period items: Net Receipt (229.97) (138.45)FE Variation (105.55) 181.07

Operating Cashflow before working capital changes & afterExtraordinary & Exceptional items, Prior Period items 5,779.90 6,032.59Adjustments for working capital changes:

Inventories 2,312.67 652.38Trade and other receivables (22,022.51) (9,983.00)Trade and other payables 16,894.34 (4,203.09)

Cash generated from operation (A) 2,964.40 (7,501.12)B. Cashflow from Investing acitivities:

Purchase of fixed assets (1,028.92) (10,523.98)Capital Work-in-progress (406.51) (2,914.31)Sale of Fixed Assets 312.16 213.33Interest received 221.36 282.57

Net Cash from investing operation (B) (901.91) (12,942.39)C. Cashflow from financing activities:

Proceeds from Share Capital - -Proceeds from Borrowings from GOI & Banks 7,191.04 17,560.07Interest paid (1,298.89) (1,572.95)

Net Cash from financing operation (C) 5,892.15 15,987.11D. Net Increase in Cash & Cash

Equivalent (A)+(B)+(C) 7,954.64 (4,456.40)Cash and cash equivalent at the beginning of the year 18,619.06 23,075.45

Cash and cash equivalent at the end of the year 26,573.70 18,619.06

For and on behalf of the Board of Directors As per our report of even dateFor GR Kumar & Co LLP.

Sd/- Sd/- Chartered AccountantsS V RAMBABU R Adm L V SARAT BABU, NM, IN (Retd) [Firm Reg. No. 004941S ]

Director (Finance & Commercial) Chairman & Managing Director& Chief Financial Officer

Sd/- Sd/-INAITULA BAIG CA SIVA SAI HARI BHASKAR NETI

Company Secretary (Designated Partner)Membership No. 204962

Place : Visakhapatnam UDIN: 19204962AAAAAD4899Date : 26/07/2019



SCHEDULE OF NET EXPENDITURE ON TOWNSHIP, RESIDENTIAL QUARTERS AND OTHER SOCIAL OVERHEADSFORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2019

(`in lakhs)

Description 2018-19 2017-18

Details Details Total Details Details Total

EXPENDITURE ON TOWNSHIP

AND RESIDENTIAL QUARTERS

Administration & Maintenance:

Salaries, Wages & Other Benefits 326.73 285.38

Housing Estate Site Rent 17.11 18.81

Property Tax on Residential Buildings 3.80 3.11

Electricity and Water Charges 164.27 238.65

Repairs and Maintenance 119.28 138.50

Colony Security 172.55 183.40

Miscellaneous Expenditure 17.84 821.57 27.64 895.48


828.34 902.18

Less: Income-Rent 157.32 150.83

Electricity and Water Charges 80.79 238.11 590.24 89.73 240.57 661.62

Expenditure on Social Overheads:

Schools and Educational Facilities - -

On Medical facilities 499.34 615.10

On Subsidised Canteen 57.39 102.96

On Subsidised lunch 121.55 178.94 162.08 265.04

On Subsidised transport :

Boats and launches 8.48 18.14

On Social & Cultural Activities 0.33 0.66

687.10 898.92

1277.33 1560.54

Expenditure on Public Relations and

Publicity:

Salaries 6.69 7.61

Publicity 0.81 0.36

7.52 7.98

NOTES:

1. Interest on capital outlay on Township and Residential quarters and for providing other Social Amenities (original cost of `573.61 lakhswritten down value `102.88 lakhs as on 31.03.2019) has not been taken into account since this has been finalised out of Equity ShareCapital except for an amount of `0.45 lakhs out of grant of Andhra Pradesh in respect of Gandhigram High School.

2. The figures of Township Expenditure and Income have been collected only to the extent practicable from the accounts of the company.The expenditure has been in the individual primary heads in the Profit and Loss Account.

3. Previous year's figures have been recast wherever necessary.

For and on behalf of the Board of Directors

Sd/- Sd/- Sd/-INAITULA BAIG S V RAMBABU R Adm L V SARAT BABU, NM, IN (Retd)

Company Secretary Director (Finance & Commercial) Chairman & Managing Director& Chief Financial Officer

Place : Visakhapatnam

Date : 26 Jul 2019



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(111

7.46

)(1

325.

37)

(130

6.37

)(1

252.

60)

(123

1.61

)(1

195.

37)



HIN

DU

STA

N S

HIP

YAR

D L

IMIT

ED

:: V

ISA

KH

APA

TN

AM

SH

IPS

BU

ILT

S.N

O.

Nam

e of

the

Shi

p / N

ame

of th

e O

wne

rD

ead

Wei

ght

Dat

e of

Lay

ing

Dat

e of

Dat

e of

Tonn

esK

eel

Laun

chin

g/Fl

oatin

gD

eliv

ery

1.“J

alau

sha”

The

Sci

ndia

Ste

am N

avig

atio

n C

o. L

td.,

8.17

922

-06-

1946

14-0

3-19

4826

-10-

1948

2.“J

alap

rabh

a” T

he S

cind

ia S

team

Nav

igat

ion

Co.

Ltd

.,8.

179

22-0

8-19

4620

-11-

1948

07-0

4-19

49

3.“K

utub

tari”

(P

asse

nger

Fer

ry) T

he S

cind

ia S

team

Nav

igat

ion

Co

Ltd.

,-

23-0

5-19

4718

-12-

1948

19-0

5-19

49

4.“J

alap

raka

sh”

The

Sci

ndia

Ste

am N

avig

atio

n C

o. L

td.,

8.13

827

-05-

1948

08-0

8-19

4920

-12-

1949

5.“J

alap

ankh

i” Th

e S

cind

ia S

team

Nav

igat

ion

Co.

Ltd

8.15

007

-10-

1949

06-1

2-19

4904

-04-

1950

6.“J

alap

adm

a” T

he S

cind

ia S

team

Nav

igat

ion

Co.

Ltd

.,8.

137

26-0

1-19

5014

-09-

1950

18-0

1-19

51

7.“J

alap

alak

a” T

he S

cind

ia S

team

Nav

igat

ion

Co.

Ltd

.,8.

141

26-0

1-19

5027

-12-

1950

03-0

4-19

51

8.“B

hara

tmitr

a” T

he B

hara

t Lin

e Li

mite

d8.

134

28-0

9-19

5026

-03-

1951

02-0

7-19

51

9.“J

agra

ni” T

he G

reat

Eas

tern

shi

ppin

g C

ompa

ny L

imite

d8.

125

09-0

5-19

5115

-12-

1951

09-0

6-19

52

10.

“Jal

apra

tap”

The

Sci

ndia

Ste

am N

avig

atio

n C

o. L

td.,

8.12

509

-05-

1951

27-0

2-19

5209

.08.

1952

11.

“Jal

apus

hpa”

The

Sci

ndia

Ste

am N

avig

atio

n C

o. L

td.,

8.08

726

-12-

1951

09-0

7-19

5217

-10-

1952

12.

“Bha

ratra

tna”

The

Bha

rat L

ine

Lim

ited

8.10

021

-07-

1952

26-0

8-19

5315

-07-

1954

13.

“Jal

aput

ra”

The

Sci

ndia

Ste

am N

avig

atio

n C

o. L

td.,

8.11

421

-07-

1952

09-1

1-19

5319

-08-

1954

14.

“Jal

avih

ar”

The

Sci

ndia

Ste

am N

avig

atio

n C

o., L

td.,

7.24

801

-12-

1953

16-0

8-19

5422

-06-

1955

15.

“Jal

avija

ya”

The

Sci

ndia

Ste

am N

avig

atio

n C

o., L

td.,

7.31

130

-09-

1953

26-0

3-19

5529

-12-

1955

16.

“Vid

yut”

Land

Cus

tom

s D

epar

tmen

t(M

otor

Lau

nch)

19-1

0-19

5318

-08-

1954

18-0

3-19

58

17.

“Jal

avis

hnu”

The

Sci

ndia

Ste

am N

avig

atio

n C

o. L

td7.

322

16-1

2-19

5302

-11-

1955

23-0

5-19

56

18.

“Sta

te o

f Kut

ch” T

he E

aste

rn S

hipp

ing

Cor

pora

tion

Lim

ited

8.25

302

-09-

1954

29-0

3-19

5625

-11-

1956

19.

“Ady

ar”

Mad

ras

Por

t Tru

st(K

ort N

ozzl

e Tu

g)27

-09-

1954

31-1

2-19

5525

-09-

1957

20.

“And

aman

s” M

inis

try o

f Hom

e A

ffairs

2.47

0(P

asse

nger

cum

Car

go V

esse

l)10

-08-

1955

25-0

7-19

5604

-12-

1957

21.

“Sta

te o

f Oris

sa” T

he E

aste

rn S

hipp

ing

Cor

pora

tion

Ltd.

,8.

160

08-1

2-19

5516

-02-

1957

31-1

2-19

57

22.

“Jal

avik

ram

” The

Sci

ndia

Ste

am N

avig

atio

n C

o., L

td7.

312

16-0

4-19

5629

-07-

1957

26-0

3-19

58

23.

“Jal

avee

ra”

The

Sci

ndia

Ste

am N

avig

atio

n C

o., L

td.,

7.31

204

-08-

1956

22-1

1-19

5726

-07-

1957



101

S.N

O.

Nam

e of

the

Shi

p / N

ame

of th

e O

wne

rD

ead

Wei

ght

Dat

e of

Lay

ing

Dat

e of

Dat

e of

Tonn

esK

eel

Laun

chin

g/Fl

oatin

gD

eliv

ery

24.

“Jag

mitr

a” T

he G

reat

Eas

tern

Shi

ppin

g C

ompa

ny L

td.,

6.39

131

-08-

1957

05-0

7-19

5810

-06-

1959

25.

“Dhr

uvak

” In

dian

Nav

y(M

oorin

g Ve

ssel

)27

-01-

1956

16-0

7-19

5816

-11-

1959

26.

“Indi

an In

dust

ry”

The

Indi

a St

eam

ship

Com

pany

Ltd

.,6.

419

07-1

2-19

5712

-12-

1958

27-1

0-19

59

27.

“Jay

alak

shm

i” N

ew D

hole

ra S

team

ship

s Li

mite

d5,

405

22-0

8-19

5722

-04-

1959

27-0

1-19

60

28.

“Sta

te o

f Utta

r P

rade

sh” T

he E

aste

rn S

hipp

ing

Cor

pora

tion

Ltd.

,9,

632

03-1

0-19

5931

-12-

1959

16-0

1-19

61

29.

“R.S

.V. H

aldi

a” C

alcu

tta P

ort C

omm

issi

oner

s(P

ort S

urve

y Ve

ssel

)16

-11-

1960

11-0

6-19

6025

-03-

1961

30.

“Sta

te o

f Raj

asth

an” T

he E

aste

rn S

hipp

ing

Cor

pora

tion

Ltd.

,9,

644

22-0

1-19

5929

-04-

1960

18-0

5-19

61

31.

“Vis

hvan

idhi

” The

Wes

tern

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

9,66

611

-05-

1959

06-0

9-19

6002

-10-

1961

32.

“Sta

te o

f Pun

jab”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,5

5702

-12-

1959

16-0

4-19

6106

-04-

1962

33.

“Vis

hva

Sha

nti”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,6

0629

-09-

1960

25-0

1-19

6114

-09-

1962

34.

“Vis

hva

Pre

m” T

he S

hipp

ing

Cor

pora

tion

of In

dia

Ltd.

,12

,565

27-0

8-19

6020

-12-

1961

28-0

1-19

63

35.

“Vis

hva

May

a” T

he S

hipp

ing

Cor

pora

tion

of In

dia

Ltd.

,12

,577

22-0

9-19

6006

-04-

1962

30-0

4-19

63

36.

“Vis

hva

Man

gal”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,6

0805

-05-

1961

17-0

8-19

6223

-09-

1963

37.

“Jal

a K

ala”

The

Sci

ndia

Ste

am N

avig

atio

n C

o., L

td.,

12,9

1312

-10-

1961

29-0

3-19

6312

-11-

1964

38.

“Dar

shak

” In

dian

Nav

y(S

urve

y Ve

ssel

)14

-10-

1957

02-1

1-19

5928

-12-

1964

39.

“Sta

te o

f Mad

hya

Pra

desh

” The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,8

7308

-01-

1962

15-1

0-19

6304

-05-

1965

40.

“Roh

ini”

Hin

dust

an S

hipy

ard

Lim

ited

(Lau

nch)

20-0

8-19

65

41.

“Jal

a K

endr

a” T

he S

cind

ia S

tea

Nav

igat

ion

Co.

, Ltd

.,12

,947

24-0

5-19

6216

-04-

1964

29-0

1-19

66

42.

“Sta

te o

f Wes

t Ben

gal”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,9

1506

-09-

1962

05-1

2-19

6431

-03-

1966

43.

“Jal

akan

ta”

The

Sci

ndia

Ste

am N

avig

atio

n C

o., L

td.,

12,9

1226

-04-

1963

01-0

7-19

6502

-08-

1966

44.

“Sta

te o

f Mys

ore”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,9

2313

-11-

1963

09-1

2-19

6511

-10-

1966

45.

“Vis

hva

Tej”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,8

8604

-05-

1964

01-1

0-19

6602

-10-

1967

46.

“Vis

hva

Tirth

” The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,8

8608

-01-

1965

28-1

2-19

6603

-12-

1967

47.

“Vis

hva

Sev

a” T

he S

hipp

ing

Cor

pora

tion

of In

dia

Ltd.

,12

,959

23-0

8-19

6526

-196

702

-03-

1968

48.

“Vis

hva

Sid

dhi”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,9

7224

-12-

1965

15-1

1-19

6712

-09-

1968



S.N

O.

Nam

e of

the

Shi

p / N

ame

of th

e O

wne

rD

ead

Wei

ght

Dat

e of

Lay

ing

Dat

e of

Dat

e of

Tonn

esK

eel

Laun

chin

g/Fl

oatin

gD

eliv

ery

49.

“Vis

hva

Bha

kti”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,9

3723

-01-

1968

15-0

4-19

6829

-01-

1969

50.

“Vis

hva

Sho

ba” T

he S

hipp

ing

Cor

pora

tion

of In

dia

Ltd.

,12

,931

13-0

2-19

6724

-09-

1968

11-0

5-19

69

51.

“Vis

hva

Sha

kti”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,9

0019

-05-

1967

20-0

3-19

6917

-12-

1969

52.

“Vis

hva

Dha

rma”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,8

5222

-11-

1967

08-1

0-19

6920

-04-

1970

53.

“Vis

hva

Vik

ram

” The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,8

8106

-06-

1968

09-0

2-19

7012

-09-

1970

54.

“Sha

nti”

The

Vis

akha

patn

am P

ort T

rust

Laun

ch12

-03-

1970

14-1

2-19

7031

-12-

1970

55.

“Vis

hva

Sar

shan

” The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

12,8

8316

-12-

1968

20-0

7-19

7002

-07-

1971

56.

“Wal

chan

d” H

indu

stan

Shi

pyar

d Li

mite

d(L

andi

ng C

raft)

01-0

5-19

7114

-07-

1971

30-0

9-19

71

57.

“Vis

hva

Nay

ak” T

he S

hipp

ing

Cor

pora

tion

of In

dia

Ltd.

,12

,881

26-0

6-19

6930

-11-

1970

22-1

0-19

71

58.

“T.S

. Raj

endr

a” T

he D

irect

orat

e G

ener

al o

f Shi

ppin

g(T

rain

ing

Shi

p)20

-10-

1969

25-0

4-19

7127

-03-

1972

59.

“Bom

bay

Duc

k-II”

The

Vis

akha

patn

am P

ort T

rust

(Dre

dger

)27

-08-

1971

12-0

7-19

7211

-02-

1973

60.

“Vis

hva

Kar

una”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

13,9

6726

-08-

1970

02-1

1-10

7102

-03-

1973

61.

“Vis

hva

Yash

” The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

13,9

8618

-03-

1970

17-0

3-19

7218

-05-

1973

62.

“Vis

hva

Mam

ta” T

he S

hipp

ing

Cor

pora

tion

of In

dia

Ltd.

,13

,971

23-1

2-19

7023

-08-

1972

16-1

0-19

73

63.

“Vis

hva

Ban

dan”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

13,7

6530

-06-

1971

06-0

3-19

7304

-03-

1974

64.

Vis

hva

Mad

huri”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

13,7

6225

-11-

1971

17-0

8-19

7316

-08-

1974

65.

“Indi

an E

ndur

ance

” In

dia

Stea

m S

hip

Com

pany

Ltd

.,14

,197

29-0

3-19

7226

-01-

1974

16-0

3-19

75

66.

“Jag

Doo

t” Th

e G

reat

Eas

tern

Shi

ppin

g C

ompa

ny L

td.,

21,2

9811

-09-

1972

22-0

6-19

7423

-03-

1975

67.

“Jag

at P

riya”

Dem

po S

tem

ship

s Lt

d.,

21,3

9330

-08-

1973

03-1

0-19

7430

-11-

1975

68.

“Sag

arik

a-1”

Oil

& N

atur

al G

as C

omm

issi

on(S

uppl

y cu

m C

rew

Ves

sel)

05-0

4-19

7407

-08-

1975

28-0

2-19

76

69.

“Jag

Dhi

r” T

he G

reat

Eas

tern

Shi

ppin

g C

ompa

ny L

td.,

21,3

8328

-01-

1974

14-0

3-19

7520

-03-

1976

70.

“Sag

arik

a-2”

Oil

& N

atur

al G

as C

omm

issi

on(S

uppl

y cu

m C

rew

Ves

sel)

18-1

2-19

7430

-11-

1975

30-0

3-19

76

71.

“Jag

Dha

rma”

The

Gre

at E

aste

rn S

hipp

ing

Com

pany

Ltd

.,21

,420

26-0

6-19

7424

-07-

1975

06-0

9-19

76

7

2.“In

dian

Exp

lore

r” In

dia

Stea

m S

hip

Com

pany

Ltd

.,14

,089

07-1

0-19

7417

-11-

1975

30-1

0-19

76

73.

“Jag

Dee

sh” T

he G

reat

Eas

tern

Shi

ppin

g C

ompa

ny L

td.,

21,4

0616

-03-

1976

30-0

3-19

7612

-03-

1977

74.

“Dam

odar

Gan

ga”

Dam

odar

Bul

k C

arrie

rs L

td.,

21,3

6526

-07-

1975

24-1

0-19

7625

-06-

1977



103

S.N

O.

Nam

e of

the

Shi

p / N

ame

of th

e O

wne

rD

ead

Wei

ght

Dat

e of

Lay

ing

Dat

e of

Dat

e of

Tonn

esK

eel

Laun

chin

g/Fl

oatin

gD

eliv

ery

75.

“Indi

an G

race

” In

dia

Stea

m S

hip

Com

pany

Ltd

.,21

,283

21-1

1-19

7523

-12-

1976

29-0

3-19

78

76.

“Indi

an G

lory

” In

dian

Ste

am S

hip

Com

pany

Ltd

.,21

,344

26-0

2-19

7604

-08-

1977

27-1

0-19

78

77.

`“Ja

la G

odav

ari”

The

Sci

ndia

Ste

am N

avig

atio

n C

ompa

ny L

td.,

20,9

1402

-07-

1976

16-0

3-19

7816

-04-

1979

78.

“Jal

agov

ind”

The

Sci

ndia

Ste

am N

avig

atio

n C

ompa

ny L

td,

20,8

6825

-10-

1976

03-1

1-19

7805

-12-

1979

79.

“Jal

agop

al”

The

Sci

ndia

Ste

am N

avig

atio

n C

ompa

ny L

td.,

20,8

5012

-04-

1977

11-0

7-19

7911

-09-

1980

80.

“Jal

agou

ri” T

he S

cind

ia S

team

Nav

igat

ion

Com

pany

Ltd

.,20

,854

25-1

0-19

7701

-12-

1979

27-0

3-19

8181

.“T

enne

ti” H

indu

stan

Shi

pyar

d Lt

d.,

(Lan

ding

Cra

ft)29

-10-

1980

06-0

5-19

8129

-09-

1981

82.

“Sta

te o

f Har

yana

” The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

16,7

0019

-03-

1979

27-0

7-19

8016

-06-

1983

83.

“Nan

d R

ati”

Ess

ar B

ulk

Car

rier

Ltd.

,26

,710

09-0

3-19

8130

-01-

1983

16-0

7-19

84

84.

“Sta

te o

f Guj

arat

” The

shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

16,7

8930

-05-

1979

03-0

6-19

8112

-12-

1984

85.

“Sam

udrik

a-4”

OP

SS

V O

il &

Nat

ural

Gas

Com

mis

sion

1,23

122

-04-

1984

24-1

1-19

8409

-12-

1985

86.

“Sam

udrik

a-5”

OP

SS

V O

il &

Nat

ural

Gas

Com

mis

sion

1,24

022

-05-

1984

10-0

3-19

8519

-03-

1986

87.

“Lok

Mah

esw

ari”

Bul

k C

arrie

r, S

DFC

/ M

oghu

l Lin

e Lt

d.,

26,7

2803

-10-

1981

20-0

8-19

8331

-03-

1986

88.

“Sam

udrik

a –

6” O

PS

SV

Oil

& N

atur

al G

as C

omm

issi

on1,

240

12-0

8-19

8429

-01-

1985

24-0

9-19

86

89.

“Sta

te o

f Oris

sa” T

he S

hipp

ing

Cor

pora

tion

of In

dia

Ltd.

,16

,806

05-1

2-19

7910

-01-

1982

08-0

7-19

86

90.

“Pra

bhu

Day

a” T

olan

i Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

26,7

1304

-02-

1983

25-1

1-19

8402

-03-

1987

91.

“Sam

udrik

a-7”

OP

SS

V O

il &

Nat

ural

Gas

Com

mis

sion

1,24

212

-08-

1984

23-0

6-19

8628

-05-

1987

92.

“Sag

ar B

hush

an”

(Dril

l Shi

p) O

il &

Nat

ural

Gas

Com

mis

sion

9,11

312

-08-

1984

18-0

8-19

8504

-11-

1987

93.

“Lok

Raj

esw

ari”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

26,6

3905

-03-

1982

16-0

7-19

8427

-10-

1988

94.

“ Mun

desw

ari”

– C

.I.W

.C82

5 (B

arge

)1-

8-19

8727

-10-

1988

03-0

3-19

89

95.

“ Man

jari”

– C

.I.W

.C82

5 (B

arge

)1-

8-19

8710

-11-

1988

03-0

3-19

89

96.

“ Mah

anad

i” –

C.I.

W.C

825

(Bar

ge)

1-8-

1987

27-1

0-19

8803

-03-

1989

97.

“ M

anda

kini

” –

C.I.

W.C

825

(Bar

ge)

1-8-

1987

10-1

1-19

8803

-03-

1989

98.

“ M

atla

” –

C.I.

W.C

825

(Bar

ge)

1-8-

1987

10-0

1-19

8903

-03-

1989

99.

“ Arg

o” –

C.I.

W.C

825

(Bar

ge)

1-8-

1987

07-0

2-19

8903

-03-

1989

100.

“Lok

Pra

kash

” The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

26,7

9019

-07-

1984

24-0

3-19

8512

-04-

1989

101.

“Lok

Pre

m” T

he S

hipp

ing

Cor

pora

tion

of In

dia

Ltd.

,26

,714

30-0

3-19

8529

-05-

1987

23-0

2-19

90



S.N

O.

Nam

e of

the

Shi

p / N

ame

of th

e O

wne

rD

ead

Wei

ght

Dat

e of

Lay

ing

Dat

e of

Dat

e of

Tonn

esK

eel

Laun

chin

g/Fl

oatin

gD

eliv

ery

102.

“INS

Sav

itri”

OP

V, In

dian

Nav

yO

PV

25-0

6-19

8823

-05-

1989

20-1

1-19

90

103.

“INS

Gha

rial”

GR

SE

/ In

dian

Nav

yLS

TL30

-11-

1989

01-0

4-19

9102

-05-

1991

104.

“INS

Sar

ayu”

OP

V, In

dian

Nav

yO

PV

25-0

6-19

8816

-10-

1989

104

-10-

1991

105.

“INS

Sha

rada

” In

dian

Nav

yO

PV

16-0

6-19

8922

-08-

1990

16-1

2-19

92

106.

“INS

Pra

tap”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

26,7

1828

-08-

1985

31-0

7-19

8828

-06-

1993

107.

“INS

Suj

ata”

OP

V, In

dian

Nav

yO

PV

16-0

6-19

8923

-10-

1991

03-1

1-19

93

108.

“Am

bica

” H

SD

Oile

r In

dian

Nav

y1,

000

01-0

9-19

9310

-12-

1994

23-0

1-19

95

109.

“Mah

aras

htra

” The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

42,7

50 D

WT

(Bul

ker)

18-0

9-19

8623

-09-

1992

06-0

1-19

96

110.

“Sw

atan

tra”

The

Vis

akha

patn

am P

ort T

rust

30 T

.B.P

Tug

10-0

9-19

9429

-03-

1997

12-0

9-19

97

111.

“M.V

. Goa

” The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

42,7

50 D

WT

(Bul

ker)

20-1

1-19

9422

-03-

1996

15-0

1-19

98

112.

M.V

. Sw

araj

Dw

eep

– A

& N

Adm

inis

tratio

n12

00 P

asse

nger

-cum

-C

argo

Ves

sel

22-0

3-19

9411

-12-

1996

09-1

2-19

99

113.

“Mah

atm

a” –

The

Vis

akha

patn

am P

ort T

rust

50T

B.P

. Tug

05-0

7-19

9822

-03-

1999

17-0

1-20

00

114.

“Sar

dar

Pat

el” T

he V

isak

hapa

tnam

Por

t Tru

st50

T B

.P. T

ug05

-07-

1998

22-0

3-19

9927

-05-

2000

115.

“M.V

.Tam

il N

adu”

The

Shi

ppin

g C

orpo

ratio

n of

Indi

a Lt

d.,

42,7

50 D

WT

(Bul

ker)

13-0

4-19

9721

-10-

1998

15-0

9-20

00

116.

“M.V

. RA

NG

AT”

– A

& N

Adm

inis

tratio

n10

0 P

asse

nger

Ves

sel

30-0

9-19

9927

-10-

2000

16-1

0-20

01

117.

M.V

. BA

RAT

AN

G”

– A

& N

Adm

inis

tratio

n10

0 P

asse

nger

Ves

sel

30-0

9-19

9927

-10-

2000

17-0

1-20

02

118.

“M.T

KA

BIN

I” –

New

Man

galo

re P

ort T

rust

50T

B.P

. Tug

17-0

8-19

9919

-04-

2001

03-0

8-20

02

119.

“I.N

.S G

AJ”

- A

TVP

H.Q

(In

dian

Nav

y)25

T B

.P T

ug18

-01-

2000

31-0

8-20

0104

-10-

2002

120.

“M.T

. TIR

AC

OL

- II”

– M

arm

ugao

Por

t Tru

st45

T B

.P. T

ug11

-10-

1999

15-1

1-20

0131

-03-

2003

121.

“M.V

. CH

OU

LDA

R”

– A

& N

Adm

inis

tratio

n10

0 P

asse

nger

Ves

sel

10-1

1-19

9905

-01-

2001

10-1

1-20

03

122.

“M.T

. CH

AP

OR

A - I

I” –

Mar

mug

ao P

ort T

rust

45T

B.P

. Tug

11-1

0-19

9925

-01-

2002

24-1

2-20

03

123.

“M.V

. TE

AL”

– A

& N

Adm

inis

tratio

n10

0 P

asse

nger

Ves

sel

10-1

1-19

9905

-01-

2001

29-0

1-20

04

124.

“M.V

. Jol

ly B

uoy”

– A

& N

Adm

inis

tratio

n10

0 P

asse

nger

Ves

sel

18.1

1.19

9923

.04.

2001

20.0

5.20

04

125.

“F.C

Rav

i B”

–M/s

Sar

at C

hatte

rjee

& C

o.17

.5 T

ons

Floa

ting

Cra

ne29

.02.

2000

05.0

9.20

0309

.05.

2004

126.

“M.V

. Wan

door

” –

A &

N A

dmin

istra

tion

100

Pas

seng

er V

esse

l18

.11.

1999

23.0

4.20

0115

.07.

2004

127.

FRP

Lau

nch

– V

isak

hapa

tnam

Por

t Tru

stLa

unch

02.0

1.20

05

128.

“M.V

. Hut

Bay

” –

A &

N A

dmin

istra

tion

100

Pas

seng

er V

esse

l08

.12.

1999

06.1

0.20

0211

.02.

2005



105

S.N

O.

Nam

e of

the

Shi

p / N

ame

of th

e O

wne

rD

ead

Wei

ght

Dat

e of

Lay

ing

Dat

e of

Dat

e of

Tonn

esK

eel

Laun

chin

g/Fl

oatin

gD

eliv

ery

129.

“G.H

.D. S

agar

Dur

ga”

– V

isak

hapa

tnam

Por

t Tru

st50

0 M

3 Dre

dger

30.0

9.19

9905

.09.

2003

09.0

2.20

05

130.

1st. B

arge

for A

& N

Adm

inis

tratio

n10

x 8

x 2

Met

ers

02.0

2.20

05

131.

2nd B

arge

for A

& N

Adm

inis

tratio

n10

x 8

x 2

Met

ers

02.0

2.20

05

132.

3rd B

arge

for A

& N

Adm

inis

tratio

n10

x 8

x 2

Met

ers

02.0

2.20

05

133.

4th B

arge

for A

& N

Adm

inis

tratio

n10

x 8

x 2

Met

ers

08.0

2.20

05

134.

5th B

arge

for A

& N

Adm

inis

tratio

n10

x 8

x 2

Met

ers

11.0

2.20

05

135.

6th B

arge

for A

& N

Adm

inis

tratio

n10

x 8

x 2

Met

ers

08.0

2.20

05

136.

“M.V

. Stra

it Is

land

” A &

N A

dmin

istra

tion

100

Pas

seng

er V

esse

l08

.12.

1999

11.0

1.20

0320

.05.

2005

137.

“M.V

.Jha

nsi R

ani f

or V

isak

hapa

tnam

Por

t Tru

st50

T B

.P.T

ug03

.11.

2000

17.0

6.20

0301

.09.

2005

138.

OR

V S

agar

Man

jush

a, N

atio

nal I

nstit

ute

of O

cean

Tec

hnol

ogy

Buo

y Te

nder

cum

Res

earc

h v

esse

l23

.12.

2004

03.1

1.20

0514

.06.

2006

139.

M.L

.Rad

ha N

agar

for A

& N

. Adm

in.

Util

ity L

aunc

h18

.07.

2006

140.

M.L

Utta

va fo

r A &

N A

dmin

.U

tility

Lau

nch

18.0

7.20

06

141.

M.L

.Nim

buta

la fo

r A &

N A

dmin

.U

tility

Lau

nch

02.1

1.20

06

142.

M.L

.Nila

mba

r fo

r A &

N A

dmin

.U

tility

Lau

nch

02.1

1.20

06

143.

M.V

.Goo

d P

rovi

denc

e, fo

r30

,000

DW

T Tr

ader

M/s

. Goo

dear

th M

ariti

me

Lim

ited

(GM

L), C

henn

aise

ries

Bul

k ca

rrie

r29

.07.

2005

22.0

1.20

0731

.05.

2007

144.

M.V

. Goo

d P

rince

s, fo

r G

ML,

Che

nnai

.30

,000

DW

T Tr

ader

serie

s B

ulk

carr

ier

18.0

1.20

0616

.05.

2007

23.0

1.20

08

145.

M.V

.Goo

d P

acifi

c, fo

r G

ML,

Che

nnai

30,0

00 D

WT

Trad

erse

ries

Bul

k ca

rrie

r02

.01.

2007

03.0

1.20

0807

.05.

2008

146.

M.V

.Kav

arat

ti, fo

r U

TL A

dmin

istra

tion

700

Pas

seng

ers-

160

TC

argo

ves

sel

21.1

0.20

0014

.02.

2005

27.0

6.20

08

147.

“M.V

. Bam

book

a” fo

r A &

N A

dmin

istra

tion

150

Pas

seng

er V

esse

l08

.12.

1999

14.0

6.20

0406

.11.

2008

148.

“M.V

. Nor

th P

assa

ge fo

r A &

N A

dmin

.15

0 P

asse

nger

Ves

sel

08.1

2.19

9914

.06.

2004

06.1

1.20

08

149.

M.V

. Jal

Sud

hak,

for

Vis

akha

patn

am P

ort T

rust

Oil

reco

very

and

pol

lutio

nco

ntro

l ves

sel

18.1

0.20

0315

.10.

2008

27.0

4.20

09

150.

M.V

. Goo

d P

ilgrim

s fo

r G

ML,

Che

nnai

30,0

00 D

WT

Trad

erse

ries

Bul

k ca

rrie

r18

.12.

0714

.11.

2008

10.0

8.20

09

151.

M.T

Isw

ari,

for

New

Man

galo

re P

ort T

rust

32-T

. Bol

lard

Pul

l tug

20-0

1-07

05.0

6.20

0817

.08.

2009



S.N

O.

Nam

e of

the

Shi

p / N

ame

of th

e O

wne

rD

ead

Wei

ght

Dat

e of

Lay

ing

Dat

e of

Dat

e of

Tonn

esK

eel

Laun

chin

g/Fl

oatin

gD

eliv

ery

152.

M.V

. Goo

d P

ride

for G

ML,

Che

nnai

53,0

00 D

WT

Dia

mon

dse

ries

Bul

k ca

rrie

r09

.01.

2008

23.0

3.20

0912

.04.

2010

153.

M.V

.Goo

d P

rece

dent

for

GM

L, C

henn

ai53

,000

DW

T D

iam

ond

serie

s B

ulk

carr

ier

21.0

3.20

0929

.03.

2010

05.0

2.20

11

154.

Mr.

A.W

. Del

ima

for

VP

T, V

isak

hapa

tnam

50-T

Bol

lard

pul

l Tug

21.0

3.20

0914

-07-

2010

30-1

2-20

11

155.

Ran

i Abb

akka

for

Indi

an C

oast

Gua

rdIn

shor

e P

atro

l Ves

sel

25-0

6-20

0728

-05-

2009

05-0

1-20

12

156.

M.V

. Goo

d Tr

ade

for

GM

L, C

henn

ai53

,000

DW

T D

iam

ond

31-0

3-20

1031

-03-

2011

17-0

2-20

12S

erie

s B

ulk

Car

rier

157.

Col

. H. C

art W

right

Rei

d fo

r50

-T B

olla

rd p

ull T

ug21

.03.

2009

04-1

1-20

1010

-08-

2012

Vis

akha

patn

am P

ort T

rust

, Vis

akha

patn

am

158.

Ran

i Ava

nti B

ai fo

r In

dian

Coa

st G

uard

Insh

ore

Pat

rol V

esse

l25

-06-

2007

28-0

5-20

0908

-05-

2013

159.

M.V

. Goo

d D

ay fo

r G

ML

5300

0 D

WT

Dia

mon

d30

-12-

2010

12-0

6-20

1229

-07-

2013

Ser

ies

Bul

k C

arrie

r

160.

"DH

IRA

J" fo

r In

dian

Nav

y50

T B

olla

rd P

ull T

ug27

-12-

2010

03-0

8-20

1324

-12-

2013

161.

"SA

HA

S"

for

Indi

an N

avy

50T

Bol

lard

Pul

l Tug

05-0

3-20

1103

-08-

2013

24-1

2-20

13

162.

"HIM

MAT

" fo

r In

dian

Nav

y50

T B

olla

rd P

ull T

ug27

-12-

2010

03-0

8-20

1331

-03-

2014

163.

Ran

i Dur

gava

thi f

or In

dian

Coa

st G

uard

Insh

ore

Pat

rol V

esse

l07

-01-

2009

15-0

5-20

1001

-06-

2015

164.

SA

HAY

AK

(V

C 1

1176

) fo

r In

dian

Nav

y25

T B

P T

ug07

-05-

2015

25-0

7-20

1527

-01-

2016

165.

BA

LWA

N (

VC

111

75)

for

Indi

an N

avy

25 T

BP

Tug

07-0

5-20

1525

-07-

2015

30-0

1-20

16

166.

Ran

i Gai

dinl

iu fo

r In

dian

Coa

st G

uard

Insh

ore

Pat

rol V

esse

l29

.09.

2009

06.1

1.20

1014

.09.

2016

167.

“Bul

and”

(VC

111

77)

for

Indi

an N

avy

25T

BP

Tug

11.0

4.20

1525

.07.

2015

15.1

1.20

16

168.

“Jye

sta”

(V

C 1

1173

) fo

r K

andl

a P

ot T

rust

50T

BP

Tug

04.0

1.20

1223

.04.

2016

29.1

2.20

16

169.

Ran

i Ras

hmon

i for

Indi

an C

oast

Gua

rd

(VC

111

58)

Insh

ore

Pat

rol V

esse

l29

Sep

09

18 J

un 1

125

May

18

170.

Krit

tika

(VC

111

74)

for

Dee

nday

al P

ort T

rust

50T

BP

Tug

04 J

an 1

223

Apr

16

20 S

ep 1

8

171.

Abh

ishe

k (V

C11

179)

for

Indi

an N

avy

10T

BP

Tug

16 S

ep 1

720

Sep

18

11 M

ar 1

9

172.

Aja

(11

181)

for

Indi

an N

avy

10T

BP

Tug

18 A

ug 1

720

Sep

18

11 M

ar 1

9

173.

Pon

toon

for

DG

NP

(V)

Pon

toon

01 J

un 1

826

Mar

19

29 M

ar 1

9

174.

Pon

toon

for

DG

NP

(V)

Pon

toon

01 J

un 1

826

Mar

19

29 M

ar 1

9

175.

Bah

adur

(11

182)

for

Indi

an N

avy

10T

BP

Tug

18 A

ug 1

720

Sep

18

30 M

ar 1

9

Annual Report 2018-19 - HSL

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