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Annual Report 2020-21 - Hindustan Shipyard Limited
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Transcript of Annual Report 2020-21 - Hindustan Shipyard Limited
ContentsBoard of Directors 01Chairman’s Statement 03Notice 08Board’s Report 11Corporate Governance Report 29Management Discussion & Analysis Report 39Annual Report on CSR 46Reply to the comments of Comptroller & Auditor General of India 56Independent Auditors’ Report 58Comments of the Comptroller & Auditor General of India 71Balance Sheet 75Profit & Loss Accounts 76Notes to the Accounts 77Notes forming part of Accounts 87Cash Flow Statement 102Social Overheads 103Last 10 years at a glance 105Ships built 107
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2020-21
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Board of Directors
Cmde Hemanth Khatri, IN (Retd.)Chairman & Managing Director
BANKERS• Indian Bank• State Bank of India• UCO Bank• Central Bank of India• Union Bank of India• Bank of India• ICICI Bank
Shri Inaitula BaigCompany Secretary
Cdr J P Gupta, IN (Retd)Director (Corp. Planning & Personnel)
Shri S V RambabuDirector (Finance & Commercial) &
Chief Financial Officer
Dr (Mrs) N RajalakshmiIndependent Director
Cmde Kunjumon E MathewDirector (Shipbuilding)
STATUTORY AUDITORSM/s GR Kumar & Co LLP
Chartered Accountants, VisakhapatnamCOST AUDITORS
Uppalapati & AssociatesCost Accountants, Visakhapatnam
INTERNAL AUDITORSM/s Brahmayya & Co
Chartered Accountants,Visakhapatnam
Shri Shrish KumarGovernment Nominee Director
Shri V P SreepadmanabhanIndependent Director
Registered & Corporate Office :Gandhigram P.O., Gandhigram,
Visakhapatnam - 530005Corporate Identity Number (CIN)
U74899AP1952GOI076711
2 2020-21
VisionTo be an Internationally competitive Shipyard for construction, repair and refitting ofShips & Submarines and achieve mini-ratna status by ensuring higher VoP, Positivenetworth and sustained profit.
MissionTo continuously innovate and improve upon performance for construction and repair ofships and submarines within contractual time, cost and quality standards meetingcustomer satisfaction.
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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69th ANNUAL GENERAL MEETINGCHAIRMAN’S SPEECH
Dear Shareholders,1. I welcome you all in this 69th Annual General Meeting of Hindustan Shipyard Limited and thank you all forattending the same in virtual mode. I hope you and all your family members and dear ones are healthy and safe fromCOVID.2. The Company’s Annual Accounts for the financial year ended on 31st Mar 2021 along with Board’s Report,Auditor’s Report and Comments of C&AG have already been circulated to all concerned. Before I enumerate variousaspects of company’s performance, progress, modernization, future plans and other issues related to employee welfare,let me briefly highlight the business environment where your company is functioning.Our Operating Environment3. The expansion plans of maritime forces such as Indian Navy and Coast Guard has given the much needed boostto the indigenous defence shipbuilding. This provided a great opportunity to the Company. We at HSL are now lookingfor strategic partnerships with major industry players and seize the opportunities. Some of our initiatives have yieldedresults and we will continue to do more in this area.4. At the same time, we are strengthening ourselves in terms of manpower, infrastructure, robust supply chainmanagement and most importantly the focus of the company is on ensuring timely delivery.
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5. I now move on to the performance and other aspects of our Company during the period under reviewFinancial Performance6. During the year 2020-21 your Company achieved a total income of Rs 488 Cr and a Value of Production of Rs477.94 Cr. Value of Production of your company has been decreased as compared to previous year due to the disruptionof supply chain due to COVID-19 and consequent lockdown and restrictions imposed by the Central & State Governments.7. During the year 2020-21, your Company has posted an operating loss of Rs.73 Cr as against the profit of Rs 8.16Cr during the previous year. Your company had a loss after tax, Rs 14 Cr as against profit after tax of Rs 13.03 Cr lastyear.8. The yard lost production for the first quarter due to lockdown due to COVID and restrictions imposed by CentralGovernment and State Governments. Through the VoP in subsequent quarter picked up momentum, disruption insupply chain management continued to hamper the production during the financial year 2020-21. The idling facilities atSubmarine Division due to lack of order has also contributed significantly to low VoP in FY 2020-21 as there was nosubmarine repair order with HSL.9. Further, in an unfortunate and freak accident, a newly installed Anupam Make 70 T ELL Crane had structuralfailure and collapsed during its load testing on 01 Aug 2020. This unfortunate accident caused the death of 10 personnelwho are engaged in the load testing activities. In order to support the families of the deceased, your company has paida onetime compensation of Rs 50 lakhs to the families of the deceased. Your Company had to write off the entire costof crane and the compensation paid to the deceased families total costing around Rs 22.65 Cr has also added to theloss in the FY 2020-21. The company has initiated legal action against M/s Anupam Industries Limited for the lapseson their part.10. The accumulated losses and negative net worth of the company has also consequently increased to Rs 1196.24 Crand Rs. 595.16 Cr respectively as against accumulated losses of Rs 1182.24 Cr and Negative Net worth of Rs 567.61 Cr.Achievements11. During the year under review, the segment wise VoP from Shipbuilding division & Ship repair divisions stood at 57% &41% as against 48% & 17% of the Total VoP of the Company recorded previous year. The VOP from Ship Repair Segmenthas recorded an increase of 106% on year on year basis which is the highest in last decade. Post completion of the refit ofthe Naval Submarine in Feb 2020, the submarine division has not contributed any VOP during the FY 2020-21.However, thecompany has explored few short term business avenues such as unloading of over dimensional cargos (ODC) which hasresulted in a revenue of Rs 6.76 Cr.12. During FY 2020-21, all 04 Nos 50 Ton Bollard Pull Tugs (i.e Yard Nos VC 11192 to 11195) and 02 Nos Flap Gates(total 03 Nos on Order) (Yard Nos VC 11196 to 97) were floated concurrently three weeks ahead of projected date.Further keel for 02 Nos flap gates i.e. VC 11197 to 11198 were laid during the year under review.13. During the year under review, Purchase orders have been placed for all the pre-float items for DSVs. Fabrication,erection, blasting & priming and advance outfitting works are in progress.14. Your Company delivered the prestigious project of VC 11184. After completion of the necessary trials, the vesselwas handed over to Navy on 31 Oct 2020. This is the largest vessel with sophisticated equipment which was indigenously
2020-21
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designed and built by HSL. This is the first time that the yard has completed any Naval Ship since 1994 when NavalOPVs were made.15. In the ship repair Business Unit, you company has undertaken repairs of 06 vessels of various customers. HSLhas completed repairs on Oil Rig JUR ABAN-II by undertaking steel renewals to the tune of 248 tons in 90 days anddelivered the vessel on time to owners to enable deployment for deep sea drilling. Your company has been givingmaximum thrust to generate revenue from various Ship repair orders by participating aggressively in various tenders.This also includes getting export orders from other countries. In this move, VoP & contribution from SRC has beenhigher than previous years.Order Book Position & Future Business avenues16. As on date, the balance order book value for ship construction is aboutRs 2809.91 Cr, majority of which comprises 02 Diving Support Vessel, 04 Nos 50 Ton BP Tugs and One No SSP forIndian Navy.17. With regard to five nos Fleet Support Ships, the yard has submitted its commercial bid to Indian Navy and is inCost Negotiation stage. The yard is hopeful that the signing of the contract would be materialized during current fiscal.18. Besides this, your company has been bidding aggressively for shipbuilding, Ship Repair and Submarine Refitprojects for which Request for Proposal (RFPs) have been issued. The yard is hopeful to be successful in the bidssubmitted in response to the RFPs. Efforts are also being made to explore short term business avenues and diversificationfor utilization of idle yard infrastructure like yard jetties, slipways and workshop facilities.19. With a view to improve the business opportunities, your company has signed MoUs with GSL, GRSE, SCI andDCI. Further, HSL has finalised a rate contract with Naval Dockyard, Visakhapatnam to undertake partial refits of NavalVessels which includes dry-docking. The Rate Contract has been signed in the current fiscal. This will leverage thestrength of Co-location of both the organisations which will reduce the downtime of ships and increase their operationalavailability of the Navy.Financial Challenges20. As brought out in previous general meetings, the negative networth of the company continued to be a hindrancein securing lucrative projects in competitive bidding. In this regard, the proposal for financial restructuring with minimalcash outgo is under consideration by the Govt of India and a positive decision will alleviate the net worth of the company.21. With regard to the appeal made by ONGC against the PMA award of Rs 43 Cr to HSL by ONGC for pending dueswith Interest, the decision of Committee of Secretaries is yet to come. The receivable expected from the said awardcould not be realized during the year under review and are expected to be realized during FY 2021-22.22. The long pending issue between ICG and HSL i.e. waiver of interest of Rs 52 Cr on advance paid by ICG for 08 IPVproject has been resolved with consistent support of MoD (DDP)Business Process Re-engineering23. Significant changes are being made with an aim to achieve transformation in the way your company’s businessprocesses are being done by adopting transformation strategies in all facets of the shipyard like business outlook,diversification, HR management, skill development, CSR, corporate work culture adaptation, Technology, quality, safety
6 2020-21
culture and financial prudence. These changes are being done at each level of the management hierarchy to make everyemployee feel the need and necessity to have a sense of ownership, so that your company will meet the challenges inthis competitive environment and to leverage the strengths of the yard which are infrastructure, young officers etc. andcatapult them into industry 4.0 standards.24. Various SOPs and orders, which will bring about a significant change in working efficiency and will help us incontinual improvement and which are in line with the high ideals & ethos of the company- ‘Reform with Intent, Performwith Integrity and Transform with Intensity” have been formulated. These include policy level changes like adopting anew Material Manual- 2021 and Service Manual-2021 that are more ‘Vendor’ friendly.25. Further the dream of digital transformation is being achieved by implementing latest ERP system (SAP S4HANA).26. There is a renewed effort to leverage the strength of our industry partners, by positively engaging them withdetailed plans of our future orders and material procurement. This will help them in marshalling manpower resources tomeet the predicted increase in scale of production once FSS contract is signed.27. An implicit thrust of safety is being given and introduced concept of Safety Marshals within in-house resourcesbesides achieving ISO certification for 9001: 14001 and 45001 as per global standards.28. In order to control costs, an environment of creating cost consciousness and concept of real time monitoring ofProject cost has been introduced and is being followed diligently. Further, the efforts and expertise of the Finance andcommercial departments are being used towards timely inputs which are helping in reduction of construction cost,focus of your company is on reducing material, services and maintenance cost to remain cost competitive in themarket.COVID -19 and HSL’s Response29. In solidarity with the nations fight with COVID, your company has contributed Rs 10 lakhs to PM Cares fund andprovided food to migrant labours and distributed masks. We also conducted vaccination drive to all our employees &their family members, contract employees and extended all support to assist the community to tide over these testingtimes.MOU Grading30. The Performance of the company for the year 2020-21 based on the self-appraisal is “Fair” in terms of the MoUsigned with the Ministry of Defence.Corporate Governance31. Your Company continues to comply with good Corporate Governance practices. Your company adheres to theCorporate Governance guidelines issued by DPE. Necessary disclosures have been made in this regard in the CorporateGovernance Report which forms part of the Board’s Report. The Company expects to achieve “Excellent” grading forCorporate Governance for the financial year 2020-21 in terms of the said guidelines.Infrastructure Augmentation32. Detailed plans for a massive infrastructure augmentation in the yard for construction of FSS are also beingworked out and even the yard has taken necessary approvals to increase the factory area by another 25 acres. M/s
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KITCO has been selected as the consultant for the Infrastructure Upgradation for FSS Project. The work on InfrastructureAugmentation will commence during current financial year.Human Capital & Skill Development33. The ‘Skill HSL’ objective is being implemented by increasing the apprentices inducted for training, conductingmid-career courses for executives, and welder qualification on specialised steel.34. Your company is the front runner in HR policies to ensure that the employees are well motivated and towards thispromotion Policy has been revised to give more chances to officers to perform and recruitment reforms have beenundertaken which resulted in drawing the best available talent in market thus successfully recruited 17 officers. ThePerformance reports of officers are made on specific targets and your company’s women employees are being encouragedby having flexi timings and also a Creche & Recreation Room.Corporate Social Responsibility35. Your Company has spent Rs 25.78 lakhs towards CSR. The Major thrust during the year was Health, infrastructuresupport to educational institutes and sanitation in nearby areas. Your company has also promulgated a new CSRPolicy incorporating the amendments issued by Ministry of Corporate Affairs in New CSR Rules 2021. A detailed reporton CSR forms part of the Board’s Report.Industrial Relations36. The Company maintains harmonious industrial relations with the work force. During the year, trade union electionswere conducted successfully. The recognised and the supporting trade unions of the shipyard are constructive in theircontribution towards improvement of the company. Periodical interaction of C&MD with all the employees is being heldfor enabling them to be aware of the ongoing company affairs and to avoid communication gaps.Acknowledgements37. I would like to place on record our gratitude and appreciation for the assistance, co-operation and guidancereceived by the Company from various Ministries of the Government of India, especially the Ministry of Defence, Departmentof Defence Production, the Integrated Headquarters (Navy)/MoD, the Indian Coast Guard, Comptroller & Auditor Generalof India, Controller of Defence Accounts (Navy), Government of Andhra Pradesh, Flag Officer, Eastern Naval Commandand look forward to their continued support in the future. I acknowledge with gratitude the continued patronage andsupport received from the Company’s clients, OEMs and Vendors. I also thank the Classification authorities, Company’sBankers and Auditors for their help and co-operation. I thank all my colleagues on the Board for their harmonioussupport and immense encouragement. My special appreciation to the collective efforts of the entire HSL Team workingtirelessly to make the company fulfil its commitments. .
Thank You.
Cmde Hemant Khatri, IN (Retd)Chairman & Managing Director
Visakhapatnam30 Sep 2021
8 2020-21
NOTICE OF 69th ANNUAL GENERAL MEETINGNOTICE is hereby given that the 69th Annual General Meeting of the Members of Hindustan Shipyard Limited will be heldthrough Video Conferencing, on Thursday, the 30 Sep 2021 at 1115 Hours at Video Conferencing Room, HSL CorporateOffice, Gandhigram, Visakhapatnam 530005 in accordance with the applicable provisions of the Companies Act, 2013read with MCA General Circular No. 02/2021, 20/2020, 14/2020, and 17/2020 dated 13th Jan 2021, 5th May, 2020, 8thApril, 2020 and 13th April, 2020 respectively, to transact the following businesses.
1. Ordinary Business(a) To receive, consider and adopt the Board’s Reportand the Audited Accounts of the Company for the
year ended 31 March, 2021 along with the Auditors Report thereon.(b) To fix the remuneration of the Statutory Auditors to be appointed by the Comptroller & Auditor General
of India for the financial year 2021-22.2. Special Business
(c) To ratify the remuneration payable to the Cost Auditor appointed by the Board of Directors of theCompany for the financial year 2021-22 pursuant to Section 148 and all other applicable provisionsof the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 by passing withor without modification(s), the following resolution as an Ordinary Resolution.“RESOLVED THAT, pursuant to the provisions of Section 148 and all other applicable provisions of theCompanies Act, 2013 and the Companies (Audit and Auditors) Rules,2014 (including any statutorymodification(s) or re-enactment thereof, for the time being in force), the remuneration of Rs.70,000/-(exclusive of out of pocket expenses) plus applicable GST payable to the cost Auditor appointed by theBoard of Directors of the Company, to conduct the audit of the cost records of the Company for thefinancial year 2021-22 be and is hereby ratified.”RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to doall acts and take all such steps as may be necessary, proper or expedient to give effect to thisresolution.”
By Order of the BoardHindustan Shipyard Limited
(Inaitula Baig)Company Secretary
Date: 23 Sep 2021Place: Visakhapatnam
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Notes1. Explanatory Statement setting out the material facts concerning each item of Special Businesses to be transacted
at the General Meeting pursuant to Section 102 of the Companies Act, 2013, is annexed hereto and forms partof the Notice.
2. Pursuant to Section 101 (1) of the Companies Act 2013 and Article 13 of the Articles of Association of theCompany, Consent has been received from all the members of the company to conduct the 69th Annual GeneralMeeting with Shorter Notice.
3. In view of the COVID 19 pandemic, the Ministry of Corporate Affairs vide its Circular dated 5th May, 2020 and 13Jan 2021 read with Circulars dated 8th April, 2020 and 13th April, 2020 (collectively referred to as ‘Circulars’), hasintroduced certain measures enabling companies to convene their Annual General Meetings (AGM/ Meeting)through Video Conferencing (VC) or Other Audio Visual Means (OAVM) and also send notice of the Meeting andother correspondences related thereto, through electronic mode. In compliance with the said requirements of theMCA Circulars, electronic copy of the Notice along with the Annual Report for the financial year ended 31stMarch, 2021 consisting of financial statements including Board’s Report, Auditors’ Report and other documentsrequired to be attached there with (Collectively referred to as Notice) have been sent only to those memberswhose e- mail ids are registered with the Company.
4. In compliance with the said Circulars, the Company has registered email ids of the shareholders.5. The members who have not yet registered their e- mail ids with the Company may contact Sh. Inaitula Baig, on
[email protected] or 9493792639 for registering their e- mail ids on or before 29th Sep 2021. The Company shallsend the Notice to such members whose e-mail ids get registered within the aforesaid time enabling them toparticipate in the meeting and cast their votes.
6. In accordance with the aforementioned MCA Circulars, the IT department of the Company shall arrange VCfacility to the members for participating in the Meeting. The members are requested to follow the followinginstructions in order to participate in the Meeting through VC mechanism:(a) The login-id and password for joining the meeting shall be separately provided.(b) The facility for joining the Meeting shall be kept open 15 minutes before the time scheduled to start the
meeting i.e11 hours and 15 minutes after the expiry of the said scheduled time.(c) Queries on the accounts and operations of the Company or the businesses covered under the Notice may
be sent to [email protected] at least one day in advance of the meeting so that the answers may be madereadily available at the meeting;
(d) Members are requested to e-mail at [email protected] or call at 9493792082.in case of any technicalassistance required at the time of log in/ assessing/ voting at the Meeting through VC;
7. In view of the MCA Circulars, no proxy shall be appointed by the members. However, the representative ofPresident of India shall not be treated as proxy.
ToAll the Shareholders,Chairman of the Audit Committee.All DirectorsStatutory Auditors,
1 0 2020-21
STATEMENT PURSUANT TO SECTION 102 (1) OFTHE COMPANIES ACT, 2013 (“the Act”)
Item No. (c)The Board has approved the appointment of Uppalapati and Associates LLP, Practicing Cost & Management Accountantas Cost Auditors to conduct the audit of the cost records of the Company for the financial year 2021-22 at an audit feeof Rs. 70,000/- excluding out of pocket expenses plus applicable GST in its 413th Meeting held on 28 Jul 2021.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 2021-22.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 the shareholders.
By Order of the BoardHindustan Shipyard Limited
(Inaitula Baig)Company Secretary
Date: 23 Sep 2021Place: Visakhapatnam
2020-21
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BOARD’S REPORTDear Shareholders,
Your Directors are glad to present the 69th Annual Report on the working of the Company for the financial year2020-21. The audited Profit & Loss account for the financial year 2020-21, Balance Sheet, as on 31 Mar 2021,together with the report of the auditors of the Company and comments of Comptroller & Auditor General of India onthe Auditors’ report under Section 143(6) (b) of the Companies Act, 2013 are appended to this report.FINANCIAL PERFORMANCE HIGHLIGHTS2. Value of Production/ Revenue. During the financial Year 2020-21, your Company has achieved a value ofproduction of Rs. 477.94 Cr as against Rs. 573.54 Cr reported last year despite a lean order book during the year 2020-21. Your Company achieved total income of Rs 488.00 Cr as against Rs 595.02 Cr in the previous year. During the yearunder review the Company posted an Operating Loss of Rs (73.00) Cr as against Operating Profit of Rs 8.16 Cr ofprevious year.
3. Profit / Loss Before Tax: During the year 2020-21, your Company has recorded Loss Before Tax of Rs84.91 Cr (which includes Operating Loss of Rs 73 Cr) asagainst the Profit before Tax Rs 13.03 Cr reported lastyear. The company accounted Deferred Tax Asset for anamount of Rs.70.90 Cr based on the virtual certainty ofearning future profits keeping in view assured nominatedorders of FSS (Fleet Support Ships). After adjusting theDeferred Tax Asset, the net loss of the company for theyear is Rs.14.00 Cr. With this, the accumulated lossesas on 31 Mar 21 has increased to Rs 1196.34 Cr ascompared to Rs 1182.34Cr reported last year.
Parameter 2018-19 2019-20 2020-21Value of Production (Rs Cr) 594.91 573.54 477.94VoP per employee (Lakhs) 40.38 42.73 38.30Net Profit (Rs Cr) 36.24 13.03 (14.00)Employee Cost (% of VoP) 19% 23% 24.40%Operating Profit/ (Loss) (Rs Cr) 68.08 8.16 (73.00)Net worth (Rs Cr) (-)577 (-)567 (-)595.16
4. Operational Indices. The operational indices are as indicated below:
Net Worth
1 2 2020-21
5. Your company has incurred a loss during the FY 2020-21 due to lack of submarine refit orders which hasreduced the estimated contribution worth Rs 43 Cr from Submarine division. Adding to this, the loss has been accounteddue to crane accident which occurred in Aug 2020. Further, the production was also affected to some extent due toCOVID-19 pandemic which has resulted in loss in shipbuilding projects.MoU Rating6. Your Company is likely to be awarded “Fair” rating for MoU 2020-21 by the Department of Public Enterprises.7. The assessment for FY 2020-21 will be done by DPE on the basis of Annual Report to be submitted after theAnnual General Meeting. As per the internal assessment, in accordance with parameters laid down in the MoU signedwith the Government for the year 2020-21, it is expected that your Company may be rated “Fair” during the year 2020-21as the performance of the company severely affected due to lack of Submarine refit orders in ‘Submarine Business Unit’.Dividend8. As per third proviso of Section 123 (1) of Companies Act 2013 as amended vide Companies (Amendment) Act2015, the Company is not eligible for declaration of dividend due to its accumulated losses and unabsorbed depreciationand losses incurred during the year 2020-21.Capital Structure9. As on 31 Mar 2021, the authorized share capital and paid up equity share capital of the Company are Rs 304.00Cr and Rs 301.99 Cr respectively. During the year under review, there was no increase or decrease in the authorizedand paid up share capital of the company.Contribution to National Exchequer10. The contribution of your Company to the national exchequer during the year 2020-21 was Rs.105.02 Cr by wayof GST, Custom Duty and VAT etc.Financial Results11. The summarized financial results of the Company for the year 2020-21 as compared to previous three financialyears are as under: -
Reasons for Losses
Rs in CrDescription 2017-18 2018-19 2019-20 2020-21VoP 644.78 594.91 573.54 477.95Other Income 6.89 10.63 21.48 10.05Total Income 651.67 605.54 595.02 488.00Expenditure 574.98 526.83 555.77 541.32
Depreciation 4.76 4.74 4.37 4.32Interest & Finance Charges 15.73 12.99 4.87 5.46Extraordinary Item 55.70 42.48 16.98 21.81Profit before Tax 20.99 36.24 13.03 (84.91)Deferred Tax Asset - - - 70.90Net Profit 20.99 36.24 13.03 (14.01)
Profit before Depreciation,Interest, Income Tax & 97.18 96.44 39.25 (53.32)Extraordinary items (PBDIT)
2020-21
1 3
Division wise Performance12. During the year under review, the performance of three divisions i.e. Shipbuilding, Ship repair and submarinedivisions are enumerated in succeeding paragraphs.
VoP - Segment wise Contribution - Segment wise
PRODUCTION PERFORMANCE HIGHLIGHTSShipbuilding Division13 The shipbuilding division of our company achieved a Value of Production of Rs.270.59 Cr during the year asagainst Rs 268.89 Cr recorded last year.14. During FY 2020-21, all 04 Nos 50 Ton Bollard Pull Tugs (i.e Yard Nos VC 11192 to 11195) and 02 Nos Flap Gates(total 03 Nos on Order) (Yard Nos VC 11196 to 97) were floated. Further keel for 02 Nos flap gates i.e. VC11197 to 11198were laid during the year under review.15. Keels were laid for 2 Nos Diving Support Vessels (VC 11190-91) during FY 2019-20 as informed in previousfinancial year. During the year under review, Purchase orders have been placed for all the pre-float items. Fabrication,erection, blasting & priming and advance outfitting works are in progress.16. The yard completed the prestigious project of VC 11184 with all efforts. After completion of the necessary trials,the vessel was handed over to Navy on 31 Oct 2020. This is the largest vessel with sophisticated equipment which wasindigenously designed and built by HSL. This is the first time that the yard has completed such a challenging projectdespite all odds. However, as some major trials were not completed, it was agreed to retain the vessel at HSL free ofcost and continue working. As a pre-condition to delivery, Navy wanted AMC / Rate Contract to be included for keyequipment / systems and the same was also done.
Concurrent Floating of 04 Nos. 50T BP TugsDelivery of VC - 11184
1 4 2020-21
17. During the year under review the yard has achieved a production of 18000 CGT as against the installed capacityof 34409 CGT.Ship Repairs Division18. The Value of Production of Ship Repair Division during the year was Rs 198.56 Cr as against Rs 96.25 Crrecorded last year.19. During the year, Ship Repair Complex (SRC) has undertaken repairs of 06 vessels of different types for IndianNavy, DCI, SCI, FSI, DRDL, NSTL, M/s Adani Ports & Special Economic Zone Ltd. HSL has completed repairs on OilRig JUR ABAN-II by undertaking steel renewals to the tune of 248 tons in 90 days and delivered the vessel on 01 Feb2021 to enable deployment for deep sea drilling. The yard has been giving maximum thrust to generate revenue fromvarious Ship repair orders by participating aggressively in various tenders. This also includes getting export orders fromother countries. In this move, the yard has secured an order for repairs & dry docking of two foreign vessels. Repair ofthese vessels has commenced in the current fiscal.
Submarine Division20. The Value of Production of Submarine Division duringthe year was Rs 6.76 Cr as against Rs 203.04 Cr recordedlast year.21. Normal Refit of a Naval Submarine was completedahead of the Schedule. The Contract period includingguarantee liabilities has also been ended. Very few defectsof minor nature have been reported which has beenaddressed by the yard during the year under review. Theyard has proved its capability to undertake complex repairsof EKM class Submarines at HSL by ensuring the qualityof work undertaken within the contractual time frame in thetrue spirit of the Govt. of India’s “Atmanirbhar Bharat” policy.
22. The yard is also in process of discussion with Indian Navy for Normal refit of another Indian Navy Submarine forwhich necessary letters have been forwarded to Indian Navy during the year under review.23. In order to tide over the issues of idling submarine manpower, the submarine division of the yard has undertakenshort activities such as unloading of Over Dimension Consignments of L&T and Heavy Weight Consignments pertaining
Completion of Refit of INS SutlejRefit of INS Sujata completed on timeExport Refit Order Completed on time
Unloading of ODC Consignment
2020-21
1 5
Sl Yard Nos Type of the Vessel No of Owner BalanceVessels Order Value
(Rs in Cr)(a) 11190-91 Diving SupportVessels 02 Indian Navy 2230.78(b) 11192-95 50 T BP Tugs 04 Indian Navy 78.72(c) 11196-98 Flap Gates 03 DGNP(V) 7.72(d) 11199 SSP 01 Indian Navy 492.69
Total 10 2809.91
to SBC, Indian Navy. However, lack of any submarine refit orders has affected the yard by an estimated reduction in VoPand contribution by Rs 200 Cr and Rs 43 Cr respectively during FY 2020-21.Order Book Position and Business Avenues as on 31 Mar 202124. The present order book position of the yard comprises 10 vessels which are under various stages of construction.As on 31 Mar 2021, the balance contract value of shipbuilding orders is worth Rs 2809.91 Cr as under:
25. Further, the yard is pursuing/participating to bag/win various national and international shipbuilding tenders toimprove the order book position of the company. The yard has been emerged as L1 bidder in the Tender for Semi-Submersible Pontoon (SSP) and the contract worth Rs 492.69 Cr for construction of the vessel has been signed withIndian Navy on 05 Feb 21.
Impact of COVID-19 on the Operation of the Company26. The outbreak of deadly COVID-19 and ensuing lockdown from 24 Mar 2020 to 03 May 2020 and local restrictionshas affected the operations of the yard severely. The yard had production loss during the first two months i.e. Apr andMay 2020. The lockdown gave india time to put concerted efforts to battle against this deadly pandemic. After openingof economic activities from May 2020, the yard could not immediately increase the production due to complete disruptionof supply chain. As the Shipyard is an integrator and depends on timely delivery of equipment and services from variousOEMs, MSME suppliers and some large Public & private organizations such as BEL, SAIL, L&T etc. Due to thepandemic, most of the suppliers across the country invoked the force majeure clause in their respective contracts andthe delivery of critical equipment required to meet the production schedules got delayed.27. Majority of vendors/OEMs of shipbuilding machinery informed that their production activities have come standstill due to restrictions imposed by the state govts later. Therefore, the yard could not be an exception and the productionschedules during the first half of the FY 2020-21 have been affected. The yard has also requested the owners toconsider the force majeure due to the COVID pandemic.Design
28. Design department of the yard has been progessively updating capability to design naval platforms by attemptingto undertake comparatively lesser weapon intensive platforms with in-house resources and more complex platforms withthe help of experience design Collaborators. Design depart is undertaking in-house design of four 50 T tugs which areunder construction and is executing the design work of the two Diving Support Vessels and Floating Dock with supportof an Indian Design agency i.e. M/s Vik Sandvik.
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29. HSL has participated in the bidding process for construction of 500 passenger vessel for Shipping Corporation ofIndia (SCI). Design of this vessel has been undertaken in-house and HSL is one of the three shipyards that have beentechnically cleared by SCI for the next stage. Similarly, concept and bid design for construction of Three Cadet TrainingShips for Indian navy has also been undertaken with in-house resources, and HSL bid has been technically cleared bythe Indian Navy.30. In the key area of Defence shipbuilding, the shipyard is collaborating with M/s Anadolu Shipyard for the designand construction of five fleet Support ships, wherein the technical bid submitted by HSL has been accepted andapproved by Indian Navy. Based on the approved Build specifications, Shipyard has submitted its commercial bid andthe contract is expected to be singed in near future. HSL has commenced design and preparatory activities for the FSSproject. In addition, HSL is collaborating with a foreign design agency for submission of bid for the construction of 11NGOPVs for the Indian Navy.31 .Commencing this millennium with construction of smaller Patrol vessels for the Indian Coast Guard, Shipyardhas followed a steady path of growth in terms of technology and capability and has progressed to build increasinglycomplex projects such as ocean Surveillance Ships, Diving Support Vessels, Floating Dock and Fleet Support ships.Technological capability is being increased by training of in-house manpower and induction of suitably experienced shipdesign engineers, in addition to using software tools to enhance productivity. Use of AVEVA software for facilitatingintegrated ship construction and Integration of the Design department directly with the Production enabling transfer ofdesign data directly to the ship floor / machine through necessary ERP infrastructure is a transformational stepimplemented to enhance production efficiency. Additional tools in the area of ship system design, CFD, FEM etc arebeing examined for suitability and cost effectiveness with an aim to develop only critical skills in-house which whencoupled judiciously with skills available easily in industry, can assist in deriving a cost effective design.Future Prospects and New Business Initiatives32. With an order book for construction of 10 Vessels and expected nominated order for 05 Nos Fleet Support Shipfor the Indian Navy, the yard will have adequate order to keep its facilities engaged and future looks exciting.33. The Defence shipbuilding segment continues to look promising on account of ambitious acquisition plan of IndianNavy and Indian Coast Guard which is quite encouraging for the Indian Shipbuilders and the entire eco-system. Anumber of RFPs for various shipbuilding projects have been floated by the Ministry of Defence during last one year andsome more are expected to come out in the near future. However, intense competition between PSU shipyards andother private shipyards is leading to negligible profit margins in any projects for shipyards.34. As far as HSL is concerned, the yard is participating in all defence shipbuilding tenders. Simultaneously, the yardis also vigorously pursuing the nominated FSS Project. Commercial Bid for the said project has been submitted andcontract negotiation is awaited. In order to take up a big projects like FSS, the infrastructure of the yard need to beaugmented. Towards this the yard has appointed M/s KITCO as its consultant and the infrastructure augmentation isunderway with technical assistance from M/s KITCO and M/s Anadolu Shipyard, collaborator for the project.35. The Company has already developed the required ecosystem and expertise for submarine refits which can beused for submarine construction. HSL has already signed a MoU with OSKA (Russia), with regard to cooperation inconstruction of submarines. Considering the past submarine experience, HSL is awaiting RFP for refit (MRLC/NR/SR)of EKM submarine from Indian Navy.36. In the ship repair front, the yard has been participating in all ship repair opportunities. The yard has been givingmaximum thrust to generate revenue from various Ship repair orders by participating aggressively in various tenders.
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This also includes getting export orders from other countries. In this move, the yard has secured an order for repairs &dry docking of two foreign vessels and completed in time. Ship Repair Division has achieved highest VoP of Rs 198.56Cr and contribution of Rs 82.53 Cr in FY 2020-21 since last 10 financial years.37. With a view to improve the business potential of the Shipyard, your company has signed MoUs with GSL, GRSE,SCI and DCI. Further, HSL has finalised a rate contract with Naval Dockyard, Visakhapatnam to undertake partial refitsof Naval Vessels which includes dry-docking. The Rate Contract has been signed in the current fiscal. This will leveragethe strength of Co-location of both the organisations which will reduce the downtime of ships and increase their operationalavailability.38. With all the initiatives, the future of the yard looks promising and will improve the business prospects of thecompany as projects get completed and delivered on time.Quality Assurance39. During the financial year 2020-21 with respect to Quality Audit, External Audit was organized through IRQS,Kolkata in Aug 2020 for the upgraded Quality Management System ISO 9001:2015 Standard. First & second InternalAudits for the year 2020 and first internal audit for the year 2021 have been conducted by HSL internal auditors. Further,second surveillance audit by IRQS has also been conducted successfully. IRQS, Kolkata has already issued a certificateof approval for the said standard, which is valid up to Oct 21.40. There is a requirement to have the IntegratedManagement System (IMS) including OH&SMS45001:2018 and EMS 14001:2015 certificates for biddingIndian Navy projects. An order has been issued to IRQS,Kolkata for inculcating awareness, internal auditors training,conduct of stage I & Stage II Audits and issue of certificatesfor OHSMS & EMS to HSL. Accordingly, IRQS hasconducted awareness program, internal auditors trainingprogram, conducted stage I Audit in Aug 20 & Stage II Auditin Sep 20 and issued certificates for OHSMS & EMS on13 Oct 20, which were valid up to Oct 2023. First InternalAudit for the year 2021 has been conducted in Feb 2021.41. Considering the requirements for Semi-Submersible Pontoon (SSP) & Fleet Supporting Ships (FSS), 14 no. newWelding Procedure Specifications (WPS) & Procedure Qualification Records (PQR) have been established for DMR249A Grade Steel and more than 100 no. welders have been Qualified in the DMR 249A Grade Steel.Modernization42. The Company has been investing significantly towards Refurbishment and Replacement of Machinery &Infrastructure using RRMI fund sanctioned by the Govt. of India (Rs 457.36 Cr) for the said purpose. As on 31 Mar 2021,orders worth Rs.220.80 Cr have been placed out of which Procurement / work for an amount of Rs.189.61 Cr has beencompleted. Procurement / works worth Rs 9 Cr (approx.) completed during FY 2020-21. Orders valued Rs.6.66 Cr areunder progress during FY 2020-21.
HSL received OHSMS & EMS ISO 45001:2018 Certificate
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43. Major modernization activities undertaken during the year under review are Rehabilitation works to Pump Housesin Building dock & SRC Dry-dock, Renovation works to J & C (OAD) workshop, Casting of 200Nos. RCC Dock blocks,Upgradation of CNC Plasma Cutting Machine, Renovation of Administrative Office building at SRC, Air-conditioning ofHamsadwani Auditorium, Establishment of Sewage Treatment Plant, Procurement of EPR Copper Flexible Cable.Besides this, various repair & renovation activities to Civil Structures of the yard were carried out.Safety44. The management is committed to accident free and safe working environment. During the year, plant safetyinspections were undertaken by safety personnel. Unsafe practices have been identified and remedial measures havebeen instituted. Central Safety Committee meetings were conducted regularly. More Safety banners, posters, cautionboards have been displayed to create safety awareness. Tool Box Talks conducted regularly at various work centers inorder to create awareness on safety. Promulgated instructional orders on safe operation of cranes, use of hired mobilecranes in the yard and General Safety Rules.
45. Despite taking all safety measures, a newly installed Anupam Make 70 T ELL Crane had sudden structural failureand collapsed during its load testing on 01 Aug 2020. This unfortunate accident caused the death of 10 personnel whoare engaged in the load testing activities. Legal action has been initiated against M/s Anupam Industries Ltd (AIL) forsupplying inadequately designed and poorly manufactured Crane and abandoning the project without satisfactorycompletion of the work including commissioning and load testing. Due to thisuntoward accident, the company hassuffered a loss of Rs 22.65 Cr which includes compensation to thedependents of the victims. The manufacturer AIL hasbeen blacklisted and arbitration proceedings against AIL initiated.46. Safety training/ awareness programs were organized for Officers, Supervisors & Workmen and employees ofcontractor workers. Special safety drives were conducted, during which safety awareness trainings were imparted to allemployees.47. Following initiatives have been taken for bring a safe environment inside the shipyard during the period underreview:-
(a) An updated and revised Safety Manual incorporating the best practices and highest standards of safety for anaccident free environment has been adopted on the occasion of 50th National Safety Day on 04 Mar 21(b) Internal Office Order on Safe Operation of Cranes has been issued. Reliability Study of existing Cranes inthe shipyard has also been Initiated(c) Onsite Contingency Plan has been prepared to devise an action plan for various stake holders / departmentsto take actions during any emergency caused due to unforeseen man made as well natural calamities affectingthe shipyard
Fire Prevention & Security48. Fire Prevention & Safety week was observed for a week from 14 Apr 2021 to 20 Apr 2021 as a tribute to FireFighters. On the occasion of National Fire service week, the yard conducted emergency preparedness drill and basicfire training for awareness. Basic fire training provided to employees for fire safety awareness.
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49. The Management has taken steps to strengthen thesecurity arrangement in the yard by improving infrastructureand procuring necessary security devices. The followingaugmentations/ activities took place during the year underreview:-
(a) A team of NSG, OCOTOPAS and Local policevisited at HSL on 16 Dec 2020 as a preparatory Anti-Terrorist drill.(b) Systematic arrangement of parking inside theyard to reduce traffic.(c) Providing layered security to sensitive/vitallocations(d) The Visitor Management System went live andnow operational. Fire fighting drill
Information Technology & ERP50. Your company has taken various initiatives in leveraging IT for the benefit of stakeholders. Some of the majorinitiatives taken during the Financial Year 2020-21 are as under:
(a) Six Modules viz. File Life Cycle Module, Real Estate, Organisation Management, Personnel & Administration,Visitors Management and Pay roll have gone live. The yard is now moving towards a paperless office.(b) Upgraded the email server to scale up internal communication to promote paperless office & SAP alerts.(c) Upgradation of 20 Mbps ILL to 100Mbps to enable collaborative environment with video conference andinternet sharing solutions(d) Adoption of Work from Home solution for officers to sustain business communication and productivity byconfiguring encrypted VPN access to the on-premise systems during COVID-19 pandemic time.
HUMAN RESOURCE MANAGEMENT HIGHLIGHTSIndustrial Relations.51. The industrial relations continue to remain cordial and harmonious. Your Company's workmen, staff and Officersare its core strength. The synergy of working together has helped significantly to improve the productivity and improvementin delivery timelines. Union elections were successfully conducted during the year under review.Morale & Motivation.52. During the year under review, various Junior and Senior level Officers were promoted under Career PromotionPlan. The arrears of pay & wage revision have been paid to all employees to improve the morale & motivation among theworkforce. The 79th Foundation Day and Founders' Day of HSL was celebrated to commemorate the Foundation ofShipyard and give tribute to the Founder of Shipyard Shri. Seth Walchand Hirachand.
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Welfare Activities.53. Various welfare measure were undertaken by the Company to boost the morale of employees and to imbue asense of belongingness to the organization, which would in turn help the company to achieve its targets. Some of thewelfare measures taken during the year under review are:
(a) Crèche Centre has been renovated with facilitiesof Mini Refrigerator, Induction Stove, Black Board,and soft toys etc.(b) Recreation room for women employees withthe facilities of sofa, chairs and carom board etc.has been provided(c) Compensation package of Rs 50 Lakhs perperson are being paid to the dependents of 4 HSLemployees and 5 contractor employees who losttheir lives in the crane accident. Inauguration of Renovated Creche centre
Medical Benefits.54. HSL runs a First Aid Centre in the yard which works from 7 AM to 10 PM and a dispensary at HSL Townshipwhich works round the clock. Outpatient treatment facilities are also extended through a panel of doctors. There areeight referral hospitals, which are used for in-patient treatment of employees and the yard pays medical bills directly tothese hospitals for their services. The employees and their dependents are covered under the Medical Reimbursementscheme. During the year 2020-21, an amount of Rs 2.70 Crwas spent towards medical treatment of employees andtheir dependents. Retired employees and their spouses are being issued with Medical Identity Cards to avail concessionsfor medical checkups and lab tests.
IMPLEMENTATION OF KEY GOVERNMENT OF INDIA POLICIESVendor Development55. HSL has been maintaining good businessrelationship with its suppliers / vendors who are thebackbone of our supply chain management. In this regardefforts have been made to identify potential indigenousvendors in order to support the "Make in India" initiative ofGovernment of India. With a vision to create a strong vendorbase which can support indigenous warship construction& Submarine projects a dedicated team is into action foridentifying the suitable vendor base and get the vendorregistration completed within due time. Towards this,various Vendor development initiatives have been takenduring the year under review.56. Vendor development programs are the key to educate the MSMEs on the requirements of Shipbuilding industry,Officials from HSL participated in various vendor development programs conducted by NSIC, CII, FICCI, MSMEDevelopment Institutes, District Industries Centres etc.
Vendors meet & greet on 08 Jan 2021
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Procurement through GeM Portal57. With Government e-Market portal (GeM Portal) being a mandatory platform for purchase majority of the equipment/materials required for ship building and Submarine Projects are tendered out on it.58. The emphasis has been on purchase of all the equipment / material through Government e-procurement portals/ Government e-Marketplace (GeM). The Company has progressed significantly in terms of adoption of GeM for theirprocurement of goods and services. Further, the company has procured material worth Rs.150.19 lakhs through GeMduring Financial Year 2020-21.Encouragement to MSMEs59. During the financial year 2020-21, 31% of the total value of procurement and outsourcing has been done fromMSMEs. In order to encourage SC/ST owned MSME enterprises, efforts are being made in coordination with NSIC &MSME DI to improve SC/ST vendors' participation/ base and the List of SC/ ST MSMEs is being updated on a regularbasis. Vendor registration is being done by HSL as a continuous process and 212 vendors are registered with us, out ofwhich 180 are MSME vendors. As on 31 Mar. 2021, no payment to MSME's is pending beyond the statutory timeperiod.60. Time to time vendor development program has been conducted by the Company to strengthen the procurementsand identify potential vendors especially from MSE Sector, SC/ST sectors in line with Government of India policy.61. HSL has adopted Trade Receivable Electronic Discounting System (TReDS), a payment system introduced byGovt. of India in 2018 to ensure timely payment to MSEs immediately after acceptance of Bill on a discounting system.Towards this, the company is registered with RXIL for TReDS. Further, a new feature on the Vendor's Corner page hasbeen introduced where the vendors can directly check the status of their bils/invoices which are under process withHSL.Make in India Initiatives62. HSL has been consistently making efforts to boost indigenization in its ship construction projects under Make inIndia policy. Srijan Portal (www.srijandefence.gov.in) has been developed by MoD to identify potential vendors forindigenization of imported items identified by DPSUs / OFB. HSL has uploaded 57 items worth Rs 739.6 Cr forindigenization on Srijan Portal. Out of which, 13 vendors have shown interest for 13 items uploaded by HSL. During theyear under review, HSL has issued one work order to interested Vendor for indigenous development of HP Air valves upto200 Bar. HSL has indigenised 5 items during the FY 2020-21 against the target of 4 items during the year under review.63. HSL observed Atmanirbhar Week from 07 to 14 Aug 2020. A talk on indigenization plan relevant to Shipyards wasorganized at HSL. The indigenization policies relevant to DPSU Shipyards along with the items already indigenized anditems yet to be indigenized under Float, Move and Weapon categories were discussed. A Workshop on indigenoussolutions in Ship Building was organised at HSL. An online Workshop on Indigenization of items identified and targetedby HSL for current year 2020-21 was discussed by Chief Indigenisation officer at HSL. A Webinar on Supply chainmanagement with MSME vendors on Indigenization was organized in which one item of MAKE-II and another item underPPO-2017 was discussed with probable firms.
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64. In addition, following initiatives have been taken by HSL to promote indigenization:-(a) Provisions contained in 'Public Procurement (Preference to Make in India), order 2017', issued by Departmentof Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, have been incorporated in PurchaseManual for implementation.(b) Appointed Chief Indigenization Officer (CIO). Indigenisation Committee has also been constituted to selectthe items to be indigenized(c) The MAKE-II Procedure has been incorporated in the Purchase Manual in order to indigenize importedtemsthrough development of prototype. Four items have been selected for indigenisation under Make II.(d) Assurance of orders for future requirement in 5 years on the same Indian firm which executed Importsubstitute order successfully.(e) Relaxation of norms (prior experience and prior turnover) for MSMEs and start-ups in all public procurements,subject to meeting quality and technical specifications.(f) Deemed registration of vendors (Vendors registered in other Defence PSUs are to be considered as deemedRegistered)(g) Efforts are being made to identify Tier-I & Tier-II Vendors so as to facilitate development of import substitutes.(h) 'Make in India' Portal has been created in the HSL Website to attract vendors. The contact details of NodalOfficer have been provided in the portal. The list of items which are hitherto being imported are displayed on thewebsite with an intent to Indigenise.(i) A direct link to the Make in India Page of GoI (http://www.makeinindia.com) has also been provided in theportal
'Skill India' Initiatives65. HSL imparts training to a large number of ITIApprentices, Graduate Engineers and Diploma holders witha view to help them improve skills & employability.66. 38 Graduate Engineers, 17 Technical (Diploma)holders and 10 Trade (ITI) holders were imparted training inrespective streams during the year and successfullyreceived Apprentice Certif icates from Board ofApprenticeship Training (BOAT), Southern Region, Chennai.Your Company further extended training to 175 technical& non-technical students despite Covid-19 pandemic underself- sponsored industrial training program.67. Training calendar is designed to impart training to officers, staff & workmen of different levels. 110th AITTexaminations were also held in Training department.
Mid-career training programme for Officers
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68. Induction training is being imparted to newly joined officers. Mid-career training program for Executives at mid-level has been introduced in Jan 2021. This helps to develop a skilled human resource which would contribute effectivelyto Company's growth.Swachh Bharat Initiatives69. HSL has been observing each and every activity of Swachh Bharat campaign as per the directives of MoD/DDPand all HoDs / departments are ensuring cleanliness and maintenance of their respective departments and surroundingsareas by allocating 2 hours a week by each and every employee.70. During the year FY 2020-21, HSL as per thedirectives of Ministry of Defence, organized Swachh BharatPakhwada. HSL has conducted oath taking ceremony anddisplayed banners, conducted cleanliness drive in the yardand HSL residential colony. The Shipyard has alsoorganized plogging activity and collection of waste plastic.HSL also conducted seminars, painting & essay writingcompetition and organized Swachhta Rally whereinstudents from school/college & employees of HSL activelyparticipated.
Rajbhasha Promotion71. Official Language Implementation Committee meetings and workshops were being held regularly. Official LanguageHindi & Hindi Typing is ongoing process under the Hindi Teaching Scheme promulgated by Ministry of Home Affairs.Regular Hindi Classes are being held during office hours for employees within the premises of our office. Each sessionis of five months duration. Cash Award is being granted for each employee after passing the exams and after the finalexam an increment is awarded for a period of 12 months.72. In order to ensure Compliance with Section 3(3) of Official Language Act. 1963 and Official Language Rule 1976of Government of India and to encourage the use of Hindi an Inter-Departmental monthly scheme is in existence. Duringthe year 50 employees participated in Hindi Workshops.73. The Company`s Annual Report and MoU were prepared in Bilingual form. Hindi Fortnight was observed during 01-14 Sep 2020 during which various Hindi Competitions were organized and Cash Awards were distributed to WinnerEmployees.Environment Preservation74. Your Company continues to be environment friendly and has fulfilled all the statutory requirements of central andstate pollution control boards. The Company is committed to meet all the stipulated standards to maintain and protectthe environment. Tree plantation drives and various green corridors have been created in the yard.75. HSL certified with Environment Management System - EMS (ISO 14001:2015) by IRQS on 13 Oct 2020.
Swachhta Pakhwada
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Implementation of Right to Information Act, 200576. The yard is in full compliance with the RTI Act, 2005. A RTI portal in the Company's website is being maintained.
77. Necessary information as per the provisions of RTI Act 2005 is being furnished to information seekers regularly.During the year 2020-21, your Company received 308 applications/appeals (directly and through MoD) and all of themhave been disposed off as per the provisions of the Act.Reservation for Persons with Disabilities78. Reservation for physically handicapped in all groups viz A, B, C and D are being complied with the directives ofthe Government of India. Present percentage of physically handicapped employees is 3.87% against required 4%.79. Your Company extends all the relaxations/ concessions to the employees with disabilities as per the Govt.directives received from time to time. Double the transport allowance of Rs 1200/- p.m against the normal Transportallowance i.e. Rs 600/-is being paid to Blind, orthopedically handicapped with the disability of lower extremities anddeaf & dumb staff & workmen. Officers with the same disabilities are extended with Special Transport Allowance of Rs500 P.M in addition to their regular Transport Allowance.Gender Cell80. In pursuance of the instructions of the Government of India, a "Gender Budgeting Cell" has been constituted. TheCell comprise, Four women officers for effective implementation of general development programme for women employeessuch as training, advancement of skills, provision of welfare amenities at work place etc. There are presently 59 womenemployees in the yard.
Prohibition of Sexual Harassment of Women at Workplace81. A committee on prohibition of sexual harassment of women at workplace has been constituted comprising sixmembers headed by Lt. Cdr Kusum Yadav, DGM (Commercial) as the head of the complaints committee. The committeemeets once in a quarter to review implementation of the provisions under the Sexual harassment of women at workplace(Prevention, Prohibitions and Redressal) Act, 2013. The committee also comprises of Prof. S Sumitra, College of Law,Andhra University as third Party external member. Many women related initiatives have been organized during the yearas well as awareness sessions, seminars, Guest lectures, women health camps, workshops on Prohibition of SexualHarassment against women in work place have been organized for employees during the year.82. During the year, no complaint was received with respect to Sexual Harassment. Therefore, nil disclosure isfurnished under Section 22 and 28 of the Sexual Harassment of Women at workplace (Prevention, prohibition andRedressal) Act 2013.Initiatives During COVID-19 Pandemic83. Isolation wards along with oxygen support has been arranged for the COVID-19 affected employees and familymembers inside HSL Residential colony for colony residents.
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84. Special Leave has been granted to the employees for 2 weeks / duration of hospitalization who are affected withCovid-19 and also in case if family members affected with Covid-1985. RFID based Access Cards provided to all employees including Contract workmen to avoid touching Biometricdevices86. Meetings are being conducted through VC. HoDs & key personnel are provided VPN access to carryout essentialwork on SAP & intranet from home87. Face mask is made compulsory for all personnel entering Shipyard. Face masks have been issued to all employeesworking in the shipyard.88. Compulsory hand sanitization is being carried out at main gate for all personnel. Besides, hand sanitizer in bulkquantities have been issued to all departments. In addition the hand sanitizers are kept in common places89. Advisory on containment of COVID-19 like Do's & Dont's, Videos on effective hand wash, wearing face masks,social distancing and proper sanitization etc. are regularly displayed on the digital display board to bring in awarenessamong all personnel who are entering the shipyard. Preventive guidelines on COVID-19 are displayed on Boards erectedat various prominent locations of the shipyard.National Day Celebrations90. 74th Independence Day, 72nd Republic Day and BirthAnniversary of the father of the nation on 02 Oct 2020 were observedin HSL with pride, which was attended by shipyard personnel.
Cyber Security
91. Observation of CSG-DDP and third party Cyber Security Auditorhas been liquidated. An air gap network has also been establishedthat separates computers with Intranet access from Computers withInternet Access. 90% of the Computers have been migrated toWindows 10.
ANNEXURES & REPORTS
Corporate Governance Report92. The number of Board meetings and the attendance of Directors in the meetings, change of Directors and theirremuneration are enumerated in the Corporate Governance Report. The Report on Corporate Governance and ComplianceCertificate forming part of Board's Report are placed at Annexure-1 & 1A respectively.
72nd Republic Day Celebrations
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Management Discussion and Analysis93. A report on Management Discussion and Analysis forming part of Board's Report is placed at Annexure-2.Corporate Social Responsibility94. As per DPE guidelines and Companies Act 2013, considering average net profit for the immediately precedingthree financial years, your shipyard has earmarked Rs 47 lakhs as CSR Budget i.e. 2% of the average net profit ofpreceding three years. An annual report on CSR is placed at Annexure - 3.95. During the Year 2020-21, an amount of Rs.25.78 lakhs lakhs could be spent towards various CSR relatedactivities and balance amount of Rs 21.22 lakhs which pertains to ongoing projects has been transferred to "UnspentCSR Account" as required under Section 135 (6) of the Companies Act 2013.96. The following CSR activities have been undertaken during the year FY 2020-21:
(a) In solidarity with nation's fight against COVID-19, the yard has contributed Rs 10 Lakhs form itsCSR funds to PM Cares Fund.(b) Post nationwide lockdown, there was a largescale movement of migrant labours to their home.The yardhad arranged food through Campus Challenge of Rs 1 Lakh.(c) Masks worth Rs 0.65 lakhs were distributed among the needy as a preventive measure for COVID infection.(d) The yard has contributed Rs 2 Lakhs to i -TIC, Foundation, IIT Hyderabad as a support to technologicalincubator.(e) The yard also provided Apprenticeship Training beyond the requirement of 2.5% of its manpower. The yardhas spent Rs 1.51 Lakhs in FY 2020-21 and committed to spend 18.22 lakhs towards this over a period of 02years.(f) The yard also promoted infrastructure augmentation in state govt schools through an organization named"Connect Andhra" promoted by Govt. of Andhra Pradesh. The yard spent Rs 1 lakhs during the FY 2020-21 andcommitted to spend Rs 3 lakhs over a period of one year.(g) The yard has undertaken sanitation works from Scindia Junction to HSL Gate in a bid to promote theSwatch Bharat abhiyan of the Govt. of India. Towards this, the yard has spent Rs 9.09 lakhs.
Activities of Vigilance Department97. Vigilance department in HSL functions as anextended arm of Central Vigilance Commission and assistsC&MD in vigilance related matters. During the year,Vigilance Awareness Week was observed from 27 Oct 2021to 02 Nov 2021 in order to emphasize the importance ofenhanced probity and to spread awareness againstcorruption. During the awareness week, Cmde HemantKhatri, C&MD of HSL delivered a key note lecture on thetheme "Vigilant India, Prosperous India". CVO alsoaddressed the officers on this occasion. Further, CVOdelivered his vigilance awareness message in Telugu throughAll India Radio to reach vigilance related issues amongst Vigilance Awareness Week
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civil society and the public at large. The department is conducting regular surprise checks and suggesting systemimprovement. Besides this, 04 nos of CTE type reports on various aspects has been submitted to management.Regular structured meeting were held during the year 2020-21.Material changes between the end of the Financial Year and date of this report98. There has been no material change between the end of the Financial Year and date of this report.Fixed Deposits99. Your Company has not accepted any fixed deposits and as such no amount of principal or interest was outstandingas on the date of Balance Sheet.Subsidiaries & Associates100. Your Company has no Subsidiary or Associate company or Undertaking during the year under review.Particulars of Employees101. During the year under review, no employees received remuneration of Rs.102 Lakhs or more per annum. Hence,information as required under Section 197 (12) of the Companies Act, 2013, read with rule 5(2) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014, is 'NIL'.Significant & Material Orders102. During the year under review, there are no significant and material orders passed by the regulators or courts ortribunals impacting the going concern status and Company's operation in future.Annual Return103. Pursuant to Section 92(3) of the Companies Act 2013 read with rule 12(1) of the Companies (Management &Administration) Rules 2014, the annual return has been published at the Company's Website i.e www.hslvizag.in.Contract with Related Parties104. The Information required to be disclosed under Section 134(3) (h) of Companies Act 2013 is Nil for the FinancialYear 2020-21. Therefore, Form AOC -2 is not attached with the Board's Report as required under SectionReservation of Posts for SCs/STs105. Your Company has complied with all Govt. directives with regard to reservation of posts for SC/ST/OBC. Detailsof recruitments, strength and vacancy position as on 31 Mar 2021 are placed at Annexure 4, 5 & 6 respectively.Conservation of Energy106. Information required under Section 134(3)(m) of Companies Act 2013 read with rule no 8 (3) read with the Companies(Accounts) Rules 2014 pertaining to conservation of energy, technology absorption and foreign earning and outgo isplaced at Annexure-7Statutory Auditors107. M/s G R Kumar & Co, Visakhapatnam have been appointed as Statutory Auditors of the Company for thefinancial year 2020-21 by the Comptroller & Auditor General of India. The fees payable to Statutory Auditors for the year2020-21 was Rs. 3,50,000/- exclusive of out of pocket expenses and GST.
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108. The Replies of the Board of Directors on the comments of C & AG under section 143 (6)(b) of the Companies Act2013 on the Accounts of the Company for the Year ended 31 Mar 2021 are placed at Annexure-8Cost Auditors109. Uppalapati & Associates , Cost Accountants, Visakhapatnam, had been appointed as Cost Auditors for the year2020-21 in terms of Section 148 of Companies Act, 2013, read with the Companies (Cost Records and Audit) Rules,2014 to prepare and file necessary 'Cost Audit Report' with a remuneration of Rs 65,000/- exclusive of GST. Further,as required under the said Rules, the remuneration payable to the Cost Auditor had been ratified in 68th Annual GeneralMeeting by the members of the Company.Directors' Responsibility Statement110. 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, the applicable accounting standards had been followed alongwith proper explanation relating to material departures;(b) The directors had selected such accounting policies and applied them consistently and made judgmentsand estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of thecompany as on 31 Mar 2021 and of the loss of the company for that period;(c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records inaccordance with the provision of Companies Act 2013 for safeguarding the assets of the Company and forpreventing and detecting fraud and other irregularities;(d) The directors had prepared the annual accounts on a going concern basis; and(e) The directors had devised proper systems to ensure compliance with the provisions of all applicable lawsand that such systems were adequate and operating effectively.
Acknowledgements111. We acknowledge with gratitude, the valuable guidance and support received from the Department of DefenceProduction, Ministry of Defence and Department of Public Enterprises, Ministry of Heavy Industries. Your Directors areparticularly thankful to the valued customers i.e. Indian Navy and Coast Guard, Dredging Corporation of India, Oil &Natural Gas Corporation Limited, Visakhapatnam Port Trust, Deendayal Port Trust, Shipping Corporation of India andvarious vendors. Your Directors also express their gratitude to Controller of Defence Accounts (Navy), Government ofAndhra Pradesh, Departments of Customs, Income Tax, Goods & Service Tax Departments, Factory Inspector, PollutionControl Authorities, District Labour Department for their kind support. The Directors also acknowledge their gratitude tothe clients and all Classification Societies, who have ensured quality and adherence to the standards. Your Directorsalso place on record their appreciation for the assistance extended by the Company's bankers and valuable advicerendered and co-operation extended by the Internal Auditors, Statutory Auditors and the Officers & Staff of the offices ofPrincipal Director of Commercial Audit & Ex-Officio Member Audit Board, Bangalore and their Headquarters. The Boardplaces on record its appreciation for valuable contribution made by our employees at all levels.
FOR AND ON BEHALF OFTHE BOARD OF DIRECTORS
(Hemant Khatri)Place: Visakhapatnam Commodore, IN (Retd)Date: 28 Jul 2021 Chairman & Managing Director
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Annexure – 1 to the Board’s ReportREPORT ON CORPORATE GOVERNANCE
As per the guidelines issued by the Department of Public Enterprises, Government of India, a report on complianceof the provisions on Corporate Governance is enumerated in succeeding paragraphs.2. Philosophy of Corporate Governance : Hindustan Shipyard Limited constantly endeavors to adopt and maintainhighest standards of ethics in all spheres of its business activities. The company firmly believes that its business roleis based on adherence to fundamental principles of corporate governance like honesty, integrity, accountability, adequatedisclosures, legal & statutory compliances, and to protect, promote and safeguard the interests of all its stakeholders.It also strives to carry out its business obligations with good corporate values, duly discharging its duties for maximumlevel of transparency in decision making to avoid conflicts of interests. It also accords due importance to adherence tothe adopted corporate values and objectives and discharging its social responsibilities as a responsible corporatecitizen.Board of Directors3. Composition of the Board: The Board of Directors during the Financial Year 2020-21, comprised 07 Membersviz. 04 Whole-time Directors(including the Chairman and Managing Director), 01 Part time Official Director (Governmentnominee Director) and 02 Part time Non Official Directors (Independent Director).4. The details of the members of the Board during the financial year ended on 31 Mar 2021 are as under:
Name of the Directors Financial Year Category of Directorship No. of Other2020-21 Directorship
Chairman & Managing DirectorRAdm L V Sarat Babu, NMIN(Retd) 01 Apr 19 to Chairman & Managing Director Nil
31 Mar 20Cmde Hemant Khatri, IN (Retd) 01 Sep 20 to Chairman & Managing Director Nil
31 Mar 21Whole Time DirectorsCmde Hemant Khatri, IN (Retd) 01 Apr 20 to Director (Strategic Project) Nil
31 Aug 20Cdr J P Gupta, IN (Retd) 01 Apr 20 to Director Nil
31 Mar 21 (Corporate Plg & Personnel)Shri S V Rambabu 01 Apr 20 to Director Nil
31 Mar 21 (Finance & Commercial)Cmde Kunjumon E Mathew 01 Apr 20 to Director Nil
31 Mar 21 (Shipbuilding)Government Nominee DirectorShri Shrish Kumar 01 Apr 20 to Govt. Nominee Director Nil
31 Mar 21Independent DirectorShri V P Sreepadmanabhan 01 Apr 20 to Independent Director Nil
31 Mar 21Dr N Rajalakshmi 01 Apr 20 to Independent Director 1
31 Mar 21
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Changes in Board of Directors5. During the year 2020-21, Cmde Hemant Khatri, IN (Retd), Director (Strategic Project) of HSL has been appointedas Chairman & Managing Director of the Company by the President of India vide MoD Letter No. 3/1(2)/2018/D(NS)dated 01 June 2020. Cmde Hemant Khatri assumed the charge of C&MD of HSL on 01 Sep 2020.
6. Brief Profile of CmdeHemant Khatri , C&MD, HSL is as under:Cmde Hemant Khatri, NM, IN (Retd): CmdeHemant Khatri brings with him rich experience in ship repairs andship Construction. Having served in Naval Dock Yard, Visakhapatnam for seven years in various capacities andas CRO, HQENC, he was instrumental in successful completion of medium refit and modernization of an IndianNavy Submarine undertaken at HSL in 2015. The officer also had the opportunity of overseeing construction atFincantieri Shipyard in Italy as in charge of Indian Naval overseer Team that monitored construction and deliveryof two naval fleet tankers INS Deepak and INS Shakti of Indian Navy which was completed in a short span of threeyears and without any cost and overrun.CmdeHemant Khatri had taken premature retirement and took over thecharge of Director (strategic Project) of HSL on 01 Apr 2017. Under his leadership, the Company commenced theNormal Refit of another IN Submarine and successfully executed the contract. The Submarine was delivered toIndian Navy 09 days before the contractual scheduled and brought accolades to the company. The contract hasturned out to be one of the most profitable contract executed by the company. CmdeHemant Khatri relinquishedthe office of Director (Strategic Project) and assumed the charge of C&MD on 01 Sep 2020.
7. During the year 2020-21, Rear Admiral L V Sarat Babu, NM, IN (Retd) has been superannuated from service on31 Aug 2020. The Board of Director has placed on record of its appreciat ion for the services renderedby RAdm L V Sarat Babu.Changes in Key Managerial Personnel8. There has been no change in the Key Managerial Personnel in the financial year 2020-21.Vacancy of Independent Directors9. As per DPE guidelines on Corporate Governance, there should be three Independent Directors on the Board ofDirectors of HSL. Out of the required three Independent Directors, presently, only two Independent Director is on theBoard.Ministry of Defence has been apprised regularly about the situation and requested to appoint one more IndependentDirectors on the Board. Therefore, present composition of the Board of Directors is not in line with the DPE guidelines.Meetings of Board of Directors10. The Board meets at regular intervals during which the company affairs are discussed and decisions are taken.During the financial year2020-21, four Board Meetings were held on31 Aug 2020, 28 Sep 2020, 01 Dec 2020 and 27 Feb2021.The intervening gap between any two meetings was within the period prescribed by the Companies Act 2013.11. In view of the ongoing COVID Pandemic the Board Meetings held on 31 Aug 2020, 28 Sep 2020 and 01 Dec 2020were held through Video Conferencing by following the guidelines as prescribed in the Companies (Meeting of the Boardand its Powers) Rules 2014 and any amendments thereof.
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Cmde Hemant Khatri, IN (Retd) 3 3 Yes(As C&MD of HSL)RAdm L V S Babu, NM (Retd) 1 1 NACmde Hemant Khatri, IN (Retd) 1 1 Yes(As Director (Strategic Project) of HSL)Cdr J P Gupta, IN (Retd) 4 4 YesShri S V Rambabu 4 4 YesCmde Kunjumon E Mathew, IN (Retd) 4 4 YesShri Shrish Kumar 4 4 YesShri V P Sreepadmanabhan 4 4 YesDr(Mrs) N Rajalakshmi 4 4 Yes
13. Procedure for conducting Board Meetings. BoardMeetings are held at least once in every quarter, and moreoften if considered necessary, focusing on businessrequirements. Every Board meeting is convened throughproper and appropriate advance notice to the BoardMembers after obtaining approval from Chairman &Managing Director. Detailed agenda, managementreportsand 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 the Boardmembers in its very next meeting.14. In general, agenda papers are prepared by the concerned officials, concurred by the Functional Directors and putup for approval of Chairman & Managing Director. Duly approved Board notes and agenda papers are circulated amongthe Board members by the Company Secretary.15. The Board and its members have complete access to all information of the company.The Board is also free torecommend inclusion of any matter in agenda for discussion. If necessary,senior management is also called to provideadditional inputs to the items being discussed by the Board / committee.
Name of the DirectorsNo. of meetings
Attendance at lastAGMHeld during
the tenure ofDirectors
Attended
Board Meeting in progress
12. Directors Attendance. Details of Directors attendance at the Board Meetings and Annual General Meeting aregiven below.
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16. The Company has complied the provisions of Secretarial Standards 1 & 2 in accordance with the Section 118 (10)of the Companies Act 2013.17. Audit Committee. The Audit Committee of the Board comprises three members viz. Two Independent Directors,and One Whole - Time Director. The Audit Committee is being chaired by an Independent Director.18. The following were the Audit Committee Membersduring the Financial Year 2020-21.Members
(a) Dr (Mrs) N Rajalakshmi Chairperson(Independent Director)
(b) Shri V P Sreepadmanabhan Memeber(Independent Director)
(c) Cdr J P Gupta, IN (Retd) MemberDirector (Corporate Planning & Personnel)
Permanent Invitee(d) Shri S V Rambabu
Director (Finance & Commercial) and Chief Financial Officer19. The terms of reference of the audit committee are as specified in Section177 of the Companies Act, 2013 and theguidelines issued by the Department of Public Enterprises. The primary function of the committee is to assist the Boardof Directors to fulfill its responsibilities through review of financial reports, internal control systems for finance, accountingand legal compliance by the management and Board.20. The Audit Committee reviews Internal Audit Reports, meets Statutory Auditors and Internal Auditors and discussestheir findings, suggestions and other related matters and reviews the half yearly and annual financial statements beforetheir submissions to the Board.21. The Chairman of the Committee apprises the Board regarding observations of the Audit Committee during theBoard meeting. The minutes of the Audit Committee meetings are placed before the Board.22. During the financial year 2020-21,fourmeetings of the Audit Committeewere held on 31 Aug 2020, 28 Sep 2020,01 Dec 2020 and 27 Feb 2021. The Meetings held on 31 Aug 2020 and 28 Sep 2020 were held through Video Conferencingby following the guidelines mentioned in Companies (Meeting of the Board and its powers) Rules 2014 and anyamendments thereto.23. The attendance of the members of the Audit Committeeduring the financial year 2020-21is given below.
No of meetingName of the member
Held during Attendedthe tenure
Dr (Mrs) N Rajalakhsmi 4 4Shri V P Sreepadmanabhan 4 4Cdr J P Gupta 4 4
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(a) Cmde Hemant Khatri, IN (Retd) ChairmanChairman & Managing Director(From 01 Sep 2020)(b) Rear Admiral L V S Babu, NM (Retd.) ChairmanChairman & Managing Director(Upto 31 Aug 2020)(c) Cmde Hemant Khatri MemberDirector (Strategic Project)(Upto 31 Aug 2020)(d) Cdr J P Gupta MemberDirector (CP &P)(e) Shri S V Rambabu MemberDirector (Finance & Commercial)(f) CmdeKunjumon E Mathew, IN (Retd) MemberDirector (Shipbuilding)
25. The terms of reference of the committee is as under:(a) To approve proposals for procurements of materials, equipment, tools, stores & spares, imports, approvalsof works, sub-contracts, and facility hire for various Shipbuilding, Ship Repairs and Submarine projects of valueabove Rs 25 Cr and up to the value of Rs 50 Cr.(b) To approve proposals for Procurement of assets and Capital Expenditure of value above Rs 5 Cr and uptoRs 20 Cr.(c) To recommend the proposals for placement of order on nomination basis which require approval of theBoard"
26. In addition to this, Procurement Committee also scrutinizes and recommend the procurement proposals whichrequire the approval of the Board.
27. During the financial year 2020-21, fivemeetings of the Procurement Committeewere held on 19 Aug 2020, 07 Sep2020, 23 Nov 2020, 25 Jan 2021 and 29 Mar 2021. The attendance details of the members in the said meetings are asunder:
24. Procurement Committee: In order to obviate procedural delays in connection with procurement of high valueequipment, a Sub-committee of the Board with vested financial power was constituted in the 366th Board meeting heldon 21 Feb 2012. During the FY 2020-21, the following were members of the Procurement Committee.
Name of the member No of meetingHeld during the tenure Attended
Cmde Hemant Khatri (As Chairman) 4 4Rear Admiral L V Sarat Babu 1 1Cmde Hemant Khatri (As Member) 1 1Cdr J P Jupta 5 4Shri S V Rambabu 5 5Cmde Kunjumon E Mathew 5 5
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28. Human Resource Committee. In order to address HR related issues that require the attention of the Board, theBoard in its 379th Meeting 02 Dec 2013 constituted the Human Resource Committee. The Committee was subsequentlyreconstituted in various meeting.29. Following were members of HR Committee as on 31 Mar 2021:
(a) Dr (Mrs) N Rajalakshmi ChairpersonPart time Non Official Director
(b) Director (Corp. Planning & Personnel) Member(c) Director (Finance & Commercial) Member(d) Director (Shipbuilding) Member(e) Director (Strategic Project) Member
30. The terms of reference of the Committee are as follows:(a) To review and recommend the proposals towards Pay Revision of officers, staff & workmen in accordancewith the guidelines issued by Department of Public Enterprises and Administrative Ministry and revision inpayment of allowances/benefits to the employees.(b) To examine the proposals related to other HR related issues like promotion policy of the company, welfaremeasures for employees, IR issues etc. and give its recommendations.(c) To review and recommend implementation of HR Perspective Plan in alignment with company's objectiveand future business growth for approval of the Board.
31. During the year 2020-21, no meeting of HR Committee was held32. Corporate Social Responsibility and Sustainability Sub-Committee. In order to formulate the CSR&Sustainability Policy and review the activities undertaken, the Board in its 374th Meeting held on 17 May 14hadconstituted the CSR & Sustainability Committee.The Committeewas subsequently reconstituted in various meeting.Following were the members of CSR Committee as during the FY 2020-21.
(a) Shri V P Sreepadmanabhan ChairmanPart time Non Official Director
(b) Cdr J P Gupta, IN (Retd) MemberDirector (CP &P)
(c) Shri S V Rambabu MemberDirector (Finance & Commercial)
33. The terms of reference of the Committee as approved by the Board vide Circular Resolution No. 01/2021 dated16 Mar 2021 are as follows:
(i) To formulate Corporate Social Responsibility Policy and recommend the same to the Board.
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(ii) To recommend any amendment, addition/deletion to the CSR Policy.(iii) To approve the projects / programs & activities to be undertaken in any financial year and the estimatedexpenditure to be incurred on each of the project / program which shall be within the CSR Budget approved by theBoard.(iv) To formulate and recommend Annual CSR Plan in line with CSR Rules issued by MCA.(v) To monitor implementation of various Projects / programs and activities on quarterly basis or any periodicinterval as the committee deem fit.
34. During the Financial year 2020-21, three meetings of the CSR & Sustainability Committee were held on 31 Aug2020, 01 Dec 2020 and 27 Feb 2021 where all members were present.35. Investment Committee. In order to take decisions on investment of idle and surplus funds, the Board in its404th Meeting held on 28 Mar 2019 have constituted the Investment Committee with following members. .
(a) Chairman & Managing Director Chairman(b) Director (Finance & Commercial) Member(c) Director (Strategic Project) Member(d) Director (Corporate Planning & Personnel) MemberPermanent InviteeGM (Finance)Secretary to the CommitteeCompany Secretary
36. The terms of reference of the Committee are as follows:(i) The Committee shall have the powers to invest up to Rs 200 Crores in a financial year with maturity up toone year. The Committee is also empowered to take investment decisions which has maturity beyond one yearsubject to ratification of the same by the Board within 90 days from the date of investment.(ii) The Committee is also empowered to take investment decisions upto a sum of Rs 500 Crores which hasa maturity period upto 91 days.(iii) The Investment of Surplus and/or idle funds shall be made only in Public Sector Banks and exposure limitfor each Bank shall not be more than Rs.100 Cr at a time.(iv) The quorum of the committee shall be 03 members which shall invariably include C&MD and Director(Finance & Commercial).(v) The Committee shall take investment decisions in accordance with the DPE OM No. FNO. DPE/18(1)/2012-Fin dated 08 May 2017 and subsequent guidelines as may be formulated by the Ministry in this regard fromtime to time.(vi) Minutes of the Investment Committee shall be placed before the Board for Information.
37. During the Financial year 2020-21, no meeting of the Investment Committee was held.
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38. Evaluation of the Board and performance of Whole-time Directors: Ministry of Corporate Affairs, videGazette Notification No. G.S.R 463 (E) dated 05 Jun 2016 have exempted Section 134 (3)(p) to Government Companieswhere directors are evaluated by the Ministry of Central Government which is administratively in-charge of the Companyas per its own evaluation methodology. Since Hindustan Shipyard Limited is a wholly owned Government of Indiaundertaking under Department of Defence Production of Ministry of Defence andthatthe performance of Whole-timeDirectors are evaluated by Department of Defence Production, Ministry of Defence, no Separate Meeting of IndependentDirectors was held during the year 2020-21.39. Pursuant to Section 149 (8) and Clause VII of Schedule IV, the Independent Directors were to evaluate theperformance of Chairperson, Non Independent Directors on the Board, and the Board as a whole. Since Section 134 (3)(p) is exempted to Government Companies, no separate Board Evaluation was done by the Independent Directors.40. Declaration by Independent Directors. The Company has received necessary declaration from the IndependentDirector as on 31 Mar 2021 under Section 149 (7) of the Companies Act 2013 that he/she meets the criteria of independencelaid down in Section 149 (6) of the Companies Act 2013.41. Remuneration of Whole-time Directors. The remuneration of Whole Time directors is fixed by the Governmentas the Company is a Government Company within the meaning of Sec 2 (45) of Companies Act, 2013. Your Companybeing a Central Public Sector Enterprise, the appointment, tenure and remuneration of Directors are decided by thePresident of India. The Government communication appointing the Functional Directors indicate the detailed terms andconditions of their appointment including a provision for the applicability of the relevant rules of the Company. The detailsof remuneration paid to the Functional Directors during 2020-21 are provided in extract of Annual Return annexed to thisreport.42. Remuneration to Part Time Directors. Part time Official Directors are not eligible for sitting fees attended bythem. The part time Non-Official (Independent) Directors are paid sitting fees of Rs.2500/- for each meeting of the Board/Committees (s) of the Board and reimbursed actual expenditure to attendthe meeting of the Board/Board Committee(s). Government Nominee Directors are not paid any remuneration including sitting fee for attendingBoard / Committeemeetings. Further, none of the part-time Directors had any pecuniary relationship or transactions with the Companyduring the year.43. Code of Business Conduct and Ethics. As per guidelines issued by Department of Public Enterprises, thecompany has formulated "Code of Business Conduct and Ethics for Board Members and Senior Management" forbetter corporate governance and fair/transparent practices. A copy of the same has been circulated to all concerned andalso available on the website of the Company. The Board members and senior management personnel, to whom thesaid code is applicable, have affirmed compliance of the same for the year ended 31 Mar 2144. General Meetings.No extra-ordinary General Meeting was held during last three years. The details of the lastthree Annual General Meetingsof the company are given below.
Annual Year Date Time LocationGeneral Meeting
66 2017-18 31.08.2018 12.00 P.M HSL Board Room,Visakhapatnam
67 2018-19 27.09.2019 12.00 P.M HSL Board Room,Visakhapatnam
68 2019-20 01.12.2020 12.00 P.M VC Room, HSL Corp.OfficeVisakhapatnam
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45. Whistle Blower Policy. Your Company has in place a whistle blower policy with a view to establish a mechanismfor the employees to report to the management about their concerns on un-ethical behavior cases of suspected fraud orviolation of company’s general guidelines to conduct and ethics. The whistle blower mechanism inter-alia contains aprovision enabling any personnel to approach the chairman of the Audit Committee in exceptional cases and no personnelhas been denied access to the Audit Committee the year under review. The Whistle Blower Policy has been displayedon the Website of the Company.46. Risk Management Policy. The company has formulated a comprehensive Risk Management Policy under thetitle ‘Enterprise Risk Management Policy including Corruption Mitigation Plan’ in line with the DPE Guidelines onCorporate Governance for CPSEs to ensure the integration and alignment of the risk management system with thecorporate and operational objectives. The ERM Team constituted for implementation of the policy has been entrustedwith the responsibility to identify and monitor the risks associated with the business of the Company and take mitigatingactions for addressing those risks47. Disclosures. During the year 2020-21, the company has not entered into any transactions with any Directorsthat may have potential conflict with the interest of the company at large. The members of the Board, apart fromreceiving Director’s remuneration (wherever applicable), do not have any materialor pecuniary relationship or transactionwith the company which in judgment of the Board may affect independence of judgment of the directors.48. During the last three years, there has been no instance of non-compliance by the company on any matter relatedto Companies Act, 2013 or any Industrial Laws. The Board periodically reviewed the compliance of laws by the Company.49. The guidelines issued by the Department of Public Enterprises, Govt of India have been complied with.50. The company has not incurred any expenditure which is not for the purpose of Business of the Company, nor hasthe Company incurred any expenditure which is personal in nature for the Board ofDirectors and top management.
——————x——————DECLARATION
As provided under the guidelines on Corporate Governance for CPSEs2010 issued by the Department of Public Enterprise,Government of India, it is hereby declared that all Board members and Senior Management personnel have affirmedcompliance with the code of conduct for Directors and Senior Management personnel of Hindustan Shipyard Limited forthe year ended 31 Mar 2021.
For Hindustan Shipyard Limited
Place: Visakhapatnam (Hemant Khatri)Date: 28 Jul 2021 Commodore, IN (Retd.)
Chairman & Managing Director
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Annexure – 2 to the Board’s ReportMANAGEMENT DISCUSSION AND ANALYSIS REPORT
Industry Structure, Developments and outlook1. The global economic and industrial scene has gone through turbulent changes since the onset of Global LiquidityCrisis (GLC) in the year 2008. The economic downturn and consequent reduction in international cargo traffic hasseriously impacted the global shipbuilding industry. Though the global economic scenario has somewhat stabilized bynow, the demand for commercial ships is yet to revive. However, in the Indian context, the demand for warships by theIndian Navy and Indian Coast Guard has remained. 2. Presently, the Indian shipbuilding is mainly centered on 27 shipyards comprising of public secyor under central& state Governments and private sector shipyards. The Indian shipbuilding industry is of strategic importance to theIndian economy and plays an important role in national security, employment generation, development of manufacturingand related ancillary industries. Shipbuilding is highly capital, labour and technology intensive industry, which requiresa large percentage of its value addition from other industries.3. Considering the complexity and multirole capabilities demanded in a warship, design and construction of warshipshas turned out to be a very technology intensive & challenging process. The situation is demanding HSL to step-upperformance in terms of productivity, cost competitiveness, quality, timely delivery etc.4. HSL would also be required to upgrade processes and products in line with latest technology. HSL is striving toset up new profit centers through diversification, product addition, adoption of latest processes & methods, envisagingmodern shipbuilding requirements and self-reliance. HSL is also looking at opportunities to promote and fruitfully implementthe real objectives of ‘Make in India’ policy of the nation to become totally self-reliant in the area of maritime securityof the country. The Government is considering various options to boost the shipbuilding sector, including lower bankinterest rates and infrastructure development fund.5. HSL predominantly caters to the defence shipbuilding needs of the nation which is primarily driven by the maritimesecurity requirements. For HSL to compete in the global arena, cost structure and the build period of ships would be thedrivers for the shift. The yard has gained sufficient expertise in construction of warships and in retrofit of submarines.HSL is operating in a highly competitive environment across all its product segment. The private shipbuilding playersare tough competitors for orders from Defence sectors. Despite competition from International and Indian shipyards, theyard continues to make efforts for securing high value orders.6. With the innovative and constructive initiatives implemented by the yard, the yard has started turning around andmade good progress both in physical and financial performance. Furthermore, augmentation of infrastructure & technologysuch as augmentation of infrastructure for in house design and implementation of SAP ERP system with integratedProduction Lifecycle Management (PLM) would elevate its capability and performance over the coming years.Strategic Location of the Yard7. Hindustan Shipyard Limited is strategically located at the mouth of Visakhapatnam harbor and adjoining thechanel. The Eastern Naval, Shipbuilding Center/ ATV Program and Indian Coast guard assets are all located inside thechannel. The Indian Strategic Petroleum Reserve (ISPRL) are also located adjacent to HSL. In view of the statedstrategic importance, HSL continue to stand as a guard to National Strategic Assets and provide highest importance tophysical security of premises. It was with a strategic visionwith which HSL was transferred to MoD in the year 2010. Theyard is the nation’s premier shipbuilding organization catering to the needs of shipbuilding, ship repairs, submarineconstruction and refits direct sea acess, excellent infrastructure, skilled workforce, rich expertise farnered over theyears in building 194 vessels and repairing 1992 vessels of various types enable HSL to offer competent services for theDefence and maritime sectors.
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SWOT Analysis:8. Yard identifies the following to be its Strength, Weakness, Opportunities and Threats:
(a) StrengthsØ Well planned and laid out shipyard enabling smooth work flowØ Implementation of SAP ERP and Biometric systemØ Good infrastructure for shipbuilding facilitating simultaneous construction of several large and small
ships.Ø Strategically located and guarding important national Defence AssetsØ Capable to build all kinds of vessels up to 80,000 DWTØ A modern “State of the Art” design centre manned by highly trained, experienced and competent
Naval Architects & EngineersØ Only shipyard on east coast for submarine repairs
(b) WeaknessØ Negative Net-worthØ Contingent LiabilitiesØ Acute working capital constraintsØ Lack of high value ordersØ High overheads due to increased wagesØ Aged work force with low productivityØ Competency deficiency view negligible lateral induction
(c) OpportunitiesØ Growing maritime defence needs of the companyØ Navy’s requirement for submarine repairsØ Need for large special ships for intelligence gatheringØ Make in India policy of government
(d) ThreatsØ Serious efforts by private shipyards to enter naval shipbuilding and ship repair marketØ Non-availability of qualified and reliable vendors for outsourced services/worksØLow profit margins in construction of small ships and boats.Ø Uneven playing field compared to private yardsØ Volatile exchange rate variationØ Unfavourable judgments for legal casesØ Substantial delay in clearing payments by owners / customers
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Segment wise or Product wise performance9. HSL has achieved a value of production of Rs 477.60 Crr during the FY 2020-21. The Company is engaged inthree major activities i.e. shipbuilding, ship repairs and submarine retrofit and a brief performance in each divisionis given in the succeeding paragraphs.10. Segment wise performance during the FY 2020-21 is as below.
(a) Shipbuilding. HSL is presently handling 04 important Indian Navy projects comprising of 10 vessels. Theyard has delivered the vessel VC 11184 to Indian Navy during the year 2020-21. Further During the Financial year2020-21, all 04 Nos 50 Ton Bollard Pull Tugs (i.e Yard Nos VC 11192 to 11195) and 02 Nos Flap Gates (total 03Nos on Order) (Yard Nos VC 11196 to 97) were floated and keel for 02 Nos flap gates i.e. VC 11197 to 11198 werelaid during the year under review. Purchase orders have been placed for all the pre-float items for the project 2Nos Diving Support Vessels. The VoP of this division was Rs 270.24 Cr.(b) Ship Repairs. Ship Repair Complex (SRC) has undertaken repairs of 06 vessels of different types forIndian Navy, DCI, SCI, FSI, DRDL, NSTL, M/s Adani Ports & Special Economic Zone Ltd. The yard has alsoreceived two export orders during the year under review and the repair of these veesles has beencommencedduring the current fiscal. The VoP achieved by this division during the year under review was Rs 198.56 Crwhich is highest in last 10 years.(c) Submarine Division. Post timely completion of Normal Refit of EKM class Submarine, infrastructure andhuman capital at HSL and amongst MSMEs for EKM submarines has been lying idle. The gurantee period of therefit have also completed. No refit orders for EKM Submarines has led to a reduction in VoP by Rs 200 croresfrom Submarine division during the year under review. The yard is also in process of discussion with Indian Navyfor Normal refit of another Indian Navy Submarine for which necessary inputs has been submitted to Indian Navyduring the year under review. The advantages of undertaking the refit at HSL on nomination basis with regard tothe existing infrastructure, eco system, support system from ND (V)/ Submarine ops authorities and HQENChas been brought out in a detailed letter to Indian Navy. Also the huge cost advantage to Indian Navy by way ofutilizing all the existing facilities as well as leveraging the vast experience gained has been amplified. In theinterim, HSL has pro-actively tied up with ‘JSC USC’ Russia for supply of spares / material and provide technicalsupport. This project will benefit HSL to utilize the idling infrastructure of Submarine Division.
Future Outlook11. Nestling between the Eastern Ghats and the Bay of Bengal on the East Coast of India, Visakhapatnam is a majorcentre of maritime activity in India. HSL situated on the East Coast in Visakhapatnam is the nation’s premier shipyard.There is a vast potential to secure high value construction and repair orders. The Yard was brought under the control ofMinistry of Defence to meet the future requirements of Indian Navy & Coast Guard. Both Indian Navy and Coast Guardhave embarked on massive expansion plan to strengthen their fleets. HSL is geared to seize the opportunity andundertake construction of sophisticated Defence vessels.
12. 05 Nos. Fleet Support Ships (FSS). HSL has been nominated by MoD for construction of 05 Nos. Fleet SupportShips (FSS), the AoN cost of which is about Rs 9,045 Cr (approx.). HSL signed collaboration contract with M/s AnadoluShipyard on 20 Mar 20 for Design, Supply & installation of Key Machinery Equipment, Technical assistance. Buildspecifications has been submitted to IHQ MoD (N)/DSP on 21 Sep 20 and was approved on 10 Feb 21 and the Price bidhas been submitted on 31 Mar 21. The contract is expected to be signed with Indian Navy during FY 2021-22 post pricenegotiations. Construction of FSS within the stipulated timelines would require augmentation of the infrastructure. Inthis regard, M/s KITCO, Kochi, has been appointed as the technical consultant for carrying out feasibility study,
4 2 2020-21
detailed design and project management service towards implementation for augmentation of infrastructure at HSL. Thefirst phase of consultancy services including various studies on facilities and the feasibility report for augmentation isfinalized. Progress made on Infrastructure Augmentation is being reviewed by representatives from IHQ MoD (N)/DSPon monthly basis including discussions on project execution plan with participation of representatives from M/s KITCO& HSL.13. HSL has been taken over by MoD in 2010 for augmenting Nation’s submarine construction facilities. The shipyardhas already developed the required ecosystem and expertise for submarine refits which can be used for submarineconstruction. HSL has already signed a MoU with OSKA (Russia), BHEL and MIDHANI with regard to cooperation inconstruction of submarines. Considering the past submarine experience, HSL is awaiting an order for refit (MRLC/NR/SR) of EKM submarine from Indian Navy.14. With a view to boost exports in the Defence sector and creating global footprint for the shipyard, HSL is activelypursuing for export orders with neighboring countries of India like Bangladesh, Sri Lanka, Vietnam, Myanmar, Indonesia,Turkey, Malaysia & Philippines. Towards this, HSL has expressed keen interest and readiness to Export PromotionCell formed under Department of Defence Production to coordinate and follow up on all activities related to export ofdefence equipment to take up construction of products/vessels like IPVs, OPVs, Tugs, Bulkers and Passenger vesselsto these countries on need basis.15. Government has introduced Defence Procurement Procedure to enable private industries to enter into defencemanufacturing. With this, the shipbuilding business has become very competitive. Private shipyards are desperate toenter into warship building and are winning many contracts through predatory pricing. In this environment, we need tomaximise the output with the limited resources. Keeping pace with changing technology is mandatory to survive in thiscompetitive environment. The biggest challenge of HSL is its past legacy liabilities amounting and huge accumulatedlosses16. To overcome these challenges, HSL is continuously investing in people’s development. Many initiatives weretaken up in the last two years, to improve the performance of the yard to meet all the challenges. The company isstriving to get maximum bang for the buck by resorting to optimum teeth to tail ratio and best austerity measures. Ourcompany has set an objective to augment technological capabilities for the design and construction of ships andsubmarines. The design department has been equipped with the latest Aveva Marine software for basic design anddetailed design of Ships and submarines. The hardware in design department has been recently augmented to the stateof the art configuration.17. To reap the benefits such as improved efficiency, lower costs, higher revenues, and increased innovation, it isimportant to work towards achieving Industry 4.0 standards.Important activities to Improve Business potential of the Company18. Signing of MoU with GSL during Aero India – 2021. HSL has signed a Memorandum of Understanding withGoa Shipyard Ltd on 5th Feb 21 during Aero India 2021 at Bengaluru. The key objectives of the MoU are:
(a) To extend the production base by tapping domestic/ export market both in defence and non-defencesectors. This includes both “platform level” and “product level” for goods and services.(b) To secure orders in India & abroad and co-operate with each other for addressing the opportunities jointlyto leverage the individual capabilities.
19. Signing of MoU with SCI and DCI. HSL has signed MoUs with Shipping Corporation of India (SCI) and DredgingCorporation of India for repairs of ships on 24 Feb 2021 and 27 Feb 2021 respectively.
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4 3
20. Signing of MoU with GRSE. The yard has signed a Memorandum of Understanding with Garden ReachShipbuilders and Engineers Limited (GRSE) on 07 Apr 2021. The key objectives of the MoU is to mutually extend theproduction base by tapping domestic/ export market, both in defence and non-defence sectors. This includes both‘platform level’ and ‘product level’ goods and services.21. Finalization of Rate contract with ND (V). HSL has finalised a rate contract with Naval Dockyard, Visakhapatnamto undertake partial refits of Naval Vessels which includes dry-docking. The Rate Contract has been signed in thecurrent fiscal. This will enable HSL and Naval Dockyard to undertake partial refits of Naval Vessels which includes dry-docking. This will leverage the strength of Co-location of both the organisations which will reduce the downtime of shipsand increase their operational availability. This innovative agreement is a landmark achievement for the first time.22. Transportation of Over Dimensioned Consignments (ODCs). HSL has signed a Memorandum of Agreementwith M/s L&T, Mumbai on 12 Jan 21 towards utilization of HSL premises for unloading & subsequent transportation ofover dimensioned consignments (ODCs) of HPCL from HSL jetty to HPCL. Transportation of 1st & 2nd consignmentshave been successfully completed on 20 Feb 21, 01 Mar 21 respectively.Risks and Concerns23. The Yard’s financial parameters such as negative Networth and accumulated losses continued to hinder thepotential of the yard to bid for high value orders. In order to tide over the situation, the yard has submitted a FinancialRestructuring Prooposal to the Govt of India which is presently under active consideration of the Govt. In the interim,loss of potential business opportunities remain a cause of concern owing to negative networth of the company.24. The Arbitration with ONGC continued in the FY 2020-21 and an outcome on this is yet to come. The delay in thefinalization of this Arbitration case is delaying the receipt which the yard could have utilized in previous years. The yardhas continuously pursued with DDP/MoD. The yard is optimistic that a resolution on the same would soon emerge.25. Post timely completion of Normal Refit of a Naval Submarine, infrastructure and human capital at HSL andamongst MSMEs for Russian submarines has been lying idle. HSL is awaiting an order for refit (MRLC/NR/SR) of EKMsubmarine from Indian Navy. Nil business in submarine Business Unit has led to a revenue loss of nearly Rs 200 croresduring financial year 2020-21. HSL submitted its budgetary offer on 09 Feb 21 to Indian Navy for NR of anoher submarinein Apr 2022. The defect survey of the submarine was delayed due to COVID Pandemic. The yard expects that the IndianNavy will consider placing the NR on nomination. Idling facilities of Submarine division continued to be a cause ofconcern.Internal Control System and their Adequacy26. Your Company has a robust system of Internal Controls to achieve effective and efficient operations, reliability offinancial reports and compliance to applicable laws and regulations. The system comprises a clearly defined organisatonalstructure, pre-identified authority levels and procedures issued by the management covering all vital and importantareas of activities. viz. Purchase, Material Control, Works, Finance & Accounts, Personnel etc.27. The Company has outsourced internal audit to a Chartered Accountant firm i.e. Brahmayya & Co, CharteredAccountants, Visakhapatnam for the financial year 2020-21.28. The Internal Control systems are regularly reviewed by the Audit Committee. The adequacy of Internal Controlprocedures is also reviewed by the Statutory Auditors in their Audit Report. Your Company, being owned by Governmentis subject to Government Audit also.
4 4 2020-21
Financial Performance of the Company29. The Financial performance of your Company during the year as compared to the last year are as under:-
(In Rs Cr)
30. During the year under review, the yard has posted a Value of production of Rs 477.60 Cr as against Rs 573.54 Crof recorded previous year.The company also posted an operating loss of Rs 73.35 Cr during the year under review. Thecompany recorded a net loss of Rs 14 Cr as against the profit of Rs 13.03 Cr recorded previous year.31. The company continued its austerity measures with a view to economize on the expenditure to the maximumextent feasible.The operational indices such as Man Hour per CGT, VoP per employee, during this period have alsoimproved.Development of Human Resource & Industrial Relations32. Employees are the most valuable resources of any Company. Therefore the Company gives utmost importanceto training and development of its human resources so as to maximise their contribution. Employees were nominatedfor various in-house/external seminars and training modules. Awareness training on occupational health, safety,environment & fire fighting were conducted during the year.33. In order to meet the critical requirements of the yard, a total of 33 Oficers were recruited during the financial yearof which 20 officers were in regular officer cadre and 13 officers were FTE officers cadre. The yard is also analyzing theexisting gaps and decided to induct officers at appropriate level in a phased manner to bring new expertise to thecompany in view of the future projects.34. HSL imparts training to ITI Apprentices, Graduate Engineers and Diploma holders with a view to help themimprove skills & employability. The strength of existing apprentices is around 2.65% of the total manpower as againstthe required minimum 2.5%. 38 Graduate Engineers, 17 Technical (Diploma) holders and 10 Trade (ITI) holders wereimparted training in respective streams during the year and successfully received Apprentice Certificates from Board ofApprenticeship Training (BOAT), Southern Region, Chennai. Your Company further extended training to 175 technical &non-technical students despite Covid-19 pandemic under self- sponsored industrial training program.35. The industrial relations were cordial and harmonious during the year 2020-21.Environment Protection & Conservation36. Your Company continues to be environment friendly and has fulfilled all the statutory requirements of central andstate pollution control boards. The Company is committed to meet all the stipulated standards to maintain and protectthe environment.
Details As on As on31 Mar 21 31 Mar 20
Total Income 488.00 595.03Profit /(Loss) Before Depreciation,Interest, Extraordinary Items and Tax (53.32) 39.25Profit / (Loss) Before Tax (84.91) 13.03Deferred Tax Asset 70.90 -Profit / (Loss) after Tax (14.01) 13.03Cumulative Profits / (Losses) (1196.34) (1182.24)
2020-21
4 5
Technological conservation and Renewable energy developments37. The Details of Technological Conservation and Renewable Energy Developments are given in Annexure-7.Corporate Social Responsibility38. As per DPE guidelines and Companies Act 2013, considering average net profit for the immediately precedingthree financial years, your shipyard is has set a budget of Rs 47 lakhs. During the Year 2020-21, an amount of Rs.25.78lakhs lakhs could be spent towards various CSR related activities and balance amount of Rs 21.22 lakhs which pertainsto ongoing projects has been transferred to "Unspent CSR Account" as required under Section 135 (6) of the CompaniesAct 2013.39. Your Company is committed to CSR and accordingly the Board of Directors has constituted a sub-Committee forCSR and Sustainability. A CSR & Sustainability Policy and Plan for the year 2020-21 has also been formulated. ASenior Management Committee on CSR & Sustainability was constituted to monitor the implementation of the CSRPlan for the year 2020-21. The Senior Management Committee is chaired by a Chief General Manager with HODs/senior officers from concerned departments of the yard as its members. The Committee oversaw and implemented theCSR Plan for the year 2020-21.40. HSL has spent an amount of Rs 25.78 lakhs during the year 2020-21. The activities undertaken during the year2020-21 has been detailed in the Boards' Report.
***
4 6 2020-21
Annexure – 3 to the Board’s ReportANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY
FOR THE YEAR 2020-21(Pursuant to Section 135 of the Companies Act 2013 read with Rule 8 of the Companies
(Corporate Social Responsibility) Rules 20141. Brief outline on CSR Policy of the Company: The Company has framed its CSR Policy in line with theCompanies (Corporate Social Responsibility Policy) Rules, 2014 read with Section 135 of the Companies Act 2013. Inline with the CSR Policy of the Company, the Company is required to spend atleast 2% of the average profits of the lastthree financial year. The CSR Activities selected by the Company is in line with the prescribed CSR activities in theareas listed out in Schedule VII of the Companies Act 2013.2. Composition of CSR Committee:
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved bythe board are disclosed on the website of the company:https://www.hslvizag.in/content/1211_1_CSR.aspx.4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) ofrule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report):Not Applicable5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies(Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, ifany: Nil
Sl No. Financial Year Amount available for Amount required toset-off from preceding be setoff for thefinancial years (in Rs) financial year, if any (in Rs)
1 NA Nil NilTotal Nil Nil
1 Shri V P Sreepadmanabhan Independent Director 3 32 Cdr J P Gupta, IN (Retd) Director (CP &P)
(Whole-time Director) 3 33 Shri S V Rambabu Director (Finance &
Commercial)(Whole-time Director) 3 3
Sl. Name of Director Designation / Nature Number of Number ofNo. of Directorship meetings of meetings of
CSR Committee CSR Committeeheld during Attended duringthe year the year
2020-21
4 7
6. Average net profit of the company as per section 135(5):Rs 23.42 Cr7. (a) Two percent of average net profit of the company as per section 135(5):Rs 47 lakhs
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financialyears. : Nil
(c) Amount required to be set off for the financial year: Nil(d) Total CSR obligation for the financial year (7a+7b+7c) :Rs 47 Lakhs
8. (a) CSR Amount Spent or Unspent for the financial year
4 8 2020-21
(C) Details of CSR Amount spent against other than ongoing projects for the financial year
5 0 2020-21
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquiredthrough CSR spent in the financial year (asset-wise details). NIL
(a) Date of creation or acquisition of the capital asset(s). Not Applicable(b) Amount of CSR spent for creation or acquisition of capital asset: Not Applicale
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as persection 135(5). Not applicable as the Company has complied with Section 135 of the Companies Act 2013.
For and on behalf of the Board of Directors of Hindustan Shipyard Limited
(Hemant Khatri) Shri V P SreepadmanabhanCommodore, IN (Retd) ChairmanChairman & Managing Director CSR & Sustainability Committee
Date: 28 Jul 2021Place: Visakhapatnam
2020-21
5 1
ANNEXURE “4” TO THE BOARD’S REPORTPOSITION REGARDING REPRESENTATION OF SCHEDULED CASTE AND SCHEDULEDTRIBES IN VARIOUS CATEGORIES OF POSTS AS ON 31ST Mar 2020 AND 31ST MAR 2021
As on 31st Mar 2020 As on 31st Mar 2021Classification of Total Scheduled Scheduled Total Scheduled Scheduledpost/ Services Strength Castes Tribes Strength Castes TribesPERMANENTGroup “A” 179 36 19 196 46 19Group “B” 116 25 9 98 13 5Group “C”(Excluding Safaiwala) 319 58 39 243 46 36Group “D”(Excluding Safaiwala) 299 71 41 288 70 38Group’C’&’D’(safaiwala) 7 7 — 2 2 --TEMPORARY:Group “A”Group “B”Group “C”Group “D”(Excluding Safaiwala)Group “D”(Safaiwals)Group “D”(Apprenticesunder Act 1961)FIXED TERM CONTRACTGroup “A” 9 — 1 9 — 1Group “B” 13 5 --- 20 4 ---Group “C 22 4 2 22 4 2Group “D”(Excluding Safaiwala) 383 81 3 374 78 3Group “D”( Safaiwals)
5 2 2020-21
ANNEXURE “5” TO THE BOARD’S REPORTPARTICULARS OF RECRUITMENT MADE DURING THE YEAR 2020-21 AND THE
NUMBER FILLED BY MEMBERS OF SCs/STsClassification of Posts/Services Total Number Scheduled Castes Scheduled Tribes Reasons for shortfall and
of posts filled steps taken to improveduring the year the position.
PostsReserved
Postsfilled
PostsReserved
Postsfilled
PERMANENT:GROUP “A” 7 — 1 — 0GROUP “B” 15 — — — —GROUP “C” -- — — — —GROUP “D”(Excluding safaiwala) — — — — —GROUP “D” Safaiwala — — — — —GROUP “D”(Apprenticesunder Act 1961) — — — — —FIXED TERM CONTRACTFOR TWO YEARS:GROUP “A”GROUP “B” 13 — 1 — 0GROUP “C” — — — — —GROUP “D”(Excluding Safaiwala) — — — — —GROUP “D”Safaiwala — — — — —
2020-21
5 3
ANNEXURE “6” TO THE BOARD’S REPORTREPRESENTATION OF EX-SERVICEMEN AND NUMBER OF
WOMEN EMPLOYEES AS ON 31st MARCH 2021Classification of Total Strength Ex-Servicemen Women employeesPosts/Services
Number % Number %PERMANENT:GROUP “A” 196 23 11.73 15 7.65GROUP “B” 98 1 1.02 14 14.29GROUP “C”(Excluding safaiwala) 243 6 2.47 12 4.94GROUP “D”(Excluding safaiwala) 288 -- -- 3 1.04GROUP “D” Safaiwala 2 — -- 2 100GROUP “D”(Apprenticesunder Act 1961)FIXED TERM CONTRACTFOR TWO YEARS:GROUP “A” 9 7 77.78 — —GROUP “B” 20 2 10 8 40GROUP “C” 22 7 31.82 2 9.09GROUP “D”(Excluding Safaiwala) 374 — — 3 0.8GROUP “D” Safaiwala — — — — —
5 4 2020-21
ANNEXURE “7” TO THE BOARD’S REPORTINFORMATION AS PER SECTION 134(3)(m) OF COMPANIES ACT 2013 READ WITH RULE NO 8 (3) OF COMPANIES(ACCOUNTS) RULES 2014 AND FORMING PART OF THE BOARD’S REPORT FOR THE YEAR 2020-21
(A) CONSERVATION OF ENERGY :The following steps have been taken towards Energy Conservation.
(i) Utilization of 03 MW Roof Top Solar Power Plant.(ii) Use of APFC capacitor banks to improve the power factor
thereby reducing the overall Power Consumption.(iii) Running of heavy loads like Air compressors are restricted to
minimum.(iv) Reduction of lighting to optimum levels by using Lighting
management system and BMS.(v) Operation of Distribution Transformers around 70% loading by
turning off during OFF peak hours.(vi) Switching off plant and machinery when not in use.(vii) Replacement of old switchgear & old PLCA cables with suitable
capacity XLPE Cables & new switchgear etc.(viii) Replacement of old Air Conditioners with BEE certified star
rated and inverter based units.(ix) Replacement of centralized air conditioners with VRF/VRV Air
conditioning systems.(x) Replacement of old lighting with LED lamps were taken up in
phased manner.Utilization of 03 MW Roof Top Solar Power Plant
Nil
(i) The steps taken or impacton Conservation of Energy
(ii) The Steps taken by the Companyutilizing alternate sources of energy
(iii) The capital investment on energyconservation equipments
(b) TECHNOLOGY ABSORPTION
(i) The efforts made towardstechnology absorption
(ii) The Benefits derived like productimprovement, Cost Reduction,product development or ImportSubstitution
HSL has developed concept designs of Cadet Training Ships (CTS) forIndian navy using in-house resources.(i) HSL has subsequently submitted bids with the above preliminarydesign thereby saving cost of import/ procurement of the designs fromexternal agencies. The design of the CTS has cleared the Technical gateof evaluation by MOD(ii) Functional and detailed design of the DSV and Floating dock beingconstructed for Indian navy are carried out with an Indian Collaborator,while the same for the 50T Tugs and 03 Flap gates projects are being
2020-21
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(i) In case of imported technology (Imported during the last three years reckoned from the beginning of the 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 has not taken place andthe reasons thereof and
(ii) The expenditure incurred onResearch and Development
undertaken by using in-house resources. With a judicious use of in-house and external design agency as necessary based on complexity ofplatform and gaps in resource availability, Shipyard intends to addressall design requirements in the near future.
(iii) Extensive use of SAP is being undertaken for material management,and transfer of data from design to production directly using the softwarefor enhanced efficiency . Enhancement of design and production efficiency,will go a long way in reducing gaps in information and decreasing buildperiods and costs.
(a) The yard has signed a contract with M/s Anadolu Denz Insaat KizalariSanayi, Turkey in end Mar 20 for Collaboration in design, supply ofkey machinery equipment (KME), technical assistance and implementation towards construction of five Fleet support ships(FSS) for Indian navy.
(b) The year of import of Technology is 2020(c) The Technology is not yet fully absorbed.(d) Technical bid has been submitted and approved by Indian Navy and
the commercial bid was submitted in the end of Financial year. Withthe fructification of the FSS contract with Navy (likely in FY 21-22),,thedesign and construction capabilities of the Shipyard including its infrastructure is expected to see a significant jump catapulting HSL toone of the leading Shipyards in the Country capable of construction large platforms of over 200 m lengths.
Nil.
(C) FOREIGN EXCHANGE EARNINGS AND OUTGOa) Foreign exchange earned in terms of
actual inflows during the year2020-21
b) Foreign Exchange outgo during theyear 2020-21 in terms of actualoutflow:
(i) Material procurement(ii) Others
Total
USD. 59,000.00
Rs 70.21 CrRs 32.80 CrRs 103.01 Cr
5 6 2020-21
Comments of the Comptroller Auditor General of India Under section 143(6)(b) on the Accounts of theHindustan Shipyard Ltd. for the year ended 31st Mar 2021 and replies of the Board of Directors
SNo Comments Company’s ReplyStatement of Profit and LossDeferred Tax-Net (Prior Period)-Rs.45.22 CrDeferred Tax – Net(Current) – Rs.25.68 CrThe Company has recognized asDeferred Tax Asset (DTA) amountingto Rs.70.90 Cr (Rs.45.22 Cr forPrior Period and Rs.25.68 Cr forcurrent period) as on 31 Mar 2021.As per AS 22, deferred tax assetshould be recognized only if thereis a reasonable certainty of theirrealization by considering the pastrecord of the enterprise and bymaking realistic estimates of profitsin future. In respect of unabsorbeddeprecation, the deferred tax assetshall be recognized to the extentthat there is virtual certaintysupported by convincing evidencethat sufficient taxable income willbe available in future.Considering the past record of theCompany and in the absence ofconvincing evidence to establishthat there will be future profits,recognition of deferred assets is notcorrect. This has resulted in
1. Considering the strategic requirement of the Nation, HSL was broughtunder the administrative control of Ministry of Defence on 22nd Feb2010. The business scenario of the company has changed immenselypost transfer of administrative control. In recent past, Company executedhigh value shipbuilding &refit orders and posted profits during last fiveyears indicating marked improvement in performance of the Shipyard.2. The current shipbuilding order book position of the Company isRs.2809.91 Cr.Further, HSL has been nominated for the construction of05 Nos. Fleet Support Ships (FSS) as part of "Make in India" initiativewith accord of AoN by the DAC. The order value would be around Rs.20,000 Cr.3. Pursuant to this, HSL signed collaboration contract with M/s AnadoluShipyard on 20 Mar 20 for Design, Supply & installation of Key MachineryEquipment, Technical assistance towards construction of 05 Nos FSSamounting to Euros 421.50 Million with the approval of GoI.4. Pending finalization of contract price with IN, HSL has been directed toutilize this time for progressing on design activities by Anadolu, SOTRpreparation, infrastructure augmentation activities, selection ofclassif ication societies, etc. Accordingly, the technical biddocumentations, drawing schedules, build strategy, build plans havebeen finalized in consultation with M/s Anadolu in the interim. Thetechnical documentation was submitted to IHQ-MoD(N)/DSP in Sept20 and the entire Build Specification is approved as on 10 Feb 21. HSLhas also submitted the price bid to IHQ on 30 Mar 2021.5. CNC committee has been constituted by IHQ (MoD) for contractnegotiations and the process of negotiations are already started on 23Aug 2021.Since this is a nomination project and having passed throughvarious stages and reached the stage of evaluation of pricing, HSL isconfident of signing the contract with IN during FY 2021-22.6. With strict cost control measures, the yard running expenditure i.e.Pay & Benefits and Other Expenses, which were of the magnitude ofRs.240 Cr during FY 2010 have been brought down to Rs.160 Cr.Accordingly, the Break-even point which was around Rs.1000 Cr hasnow come down to Rs.750 Cr. Therefore, the fixed operating costs wouldbe absorbed manifold by the high level of activity over the ensuing years.7. Further to the shipbuilding segment, the shipyard has developed therequired ecosystem and expertise for ships / submarine refits whichcan generates annual VoP of Rs.150 Cr per annum.Considering thepast submarine experience, HSL is confident of securing an IN submarinerefit order of Rs.500 Cr and the Submarine is expected to be docked atthe end of the FY 2021-22.
ANNEXURE “8”
1.
2020-21
5 7
8. With the FSS project in advanced stage of conclusion and the works forthe project already commenced, there is a clear visibility of improvementof turnover and profits in the coming years. Accordingly considering theorders in hand, and orders in pipeline, the yard would be able to achievea VoP of more than Rs.2,000 Cr by 2023-24 with profit after tax in therange of about Rs.150 Cr.9. Therefore, after taking due cognizance of the present position and therecent developments as on date of Balance Sheet, Deferred Tax Assets(DTA) of Rs.70.90 Crwhich has been recognized in the books is in orderas the Management firmly believes the existence of virtual certainty ofincreased turnover and profits.1. HSL has already been nominated for the construction of 05 Nos. FleetSupport Ships (FSS) as part of "Make in India" initiative with accord ofAoN by the DAC. Pursuant to this, HSL signed collaboration contractwith M/s Anadolu Shipyard on 20 Mar 20 for Design, Supply & installationof Key Machinery Equipment, Technical assistance towards constructionof 05 Nos FSS amounting to Euros 421.50 Million with the approval ofGoI.2. Pending finalization of contract price with IN, HSL has been directed toutilize this time for progressing on design activities by Anadolu, SOTRpreparation, infrastructure augmentation activities, selection ofclassif ication societies, etc. Accordingly, the technical biddocumentations, drawing schedules, build strategy, build plans havebeen finalized in consultation with M/s Anadolu in the interim. Thetechnical documentation was submitted to IHQ-MoD(N)/DSP in Sept20 and the entire Build Specification is approved as on 10 Feb 21. HSLhas also submitted the price bid to IHQ on 30 Mar 2021.3. CNC committee has been constituted by IHQ (MoD) for contractnegotiations and the process of negotiations have started on 23 Aug2021.Since this is a nomination project and having passed throughvarious stages and reached the stage of evaluation of pricing, HSL isconfident of signing the contract during FY 2021-22.4. Accordingly, considering the above facts, expenditure incurred towardspayment to M/s Anadoluto the extent of Rs.25.28 Cr during FY 2020-21has been taken as revenue in line with the matching principle ofaccounting. It is further submitted that profit has not been consideredpending finalization of contract price. Presentation of expenditureincurred and corresponding revenue through the Statement of Profit andLoss gives a transparent picture of transaction.
Understatement of loss byRs.70.90 crore.Note 8 - Turnover (Revenue fromOperations) -Rs.477.95 Crore
This includes an amount of Rs.25.28 Crore being the turnoverrecognized, on incurring ofexpenditure related to collaborationfor construction of FSS (FleetSupport Ships) ships (VC-11200).Since the company submitted thebid to customer (IHQ), only on30.03.21 and the contract forconstruction and delivery of theseships is yet to be finalised, therecognition of turnover of Rs.25.28crore is not correct. Recognition ofrevenue without determining theprice and identifying all theperformance obligations, asmandated under AS 7, has resultedin overstatement of Revenue andexpenditure by Rs.25.28 crore.
For and on behalf of the Board of Directors
Hemant KhatriCmde.IN (Retd.)
Chairman & Managing DirectorVisakhapatnam23 Sep 2021
2.
5 8 2020-21
Independent Auditor’s Report
ToThe MembersHindustan Shipyard LimitedVisakhapatnam
Report on the Audit of Financial Statements
Opinion
1. We have audited the accompanying financial statements of Hindustan Shipyard Limited (‘the Company’),which comprise the Balance Sheet as at 31 March 2021, the Statement of Profit and Loss and the Statementof Cash Flow for the year then ended, and notes to the financial statements, including a summary of significantaccounting policies and other explanatory information.
2. In our opinion, and to the best of our information and according to the explanations given to us, the aforesaidfinancial statements read together with the other notes thereon give the information required by the CompaniesAct, 2013 (the ‘Act’) in the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including the accounting Standards specified under section 133 of theAct, of the state of affairs of the Company as at 31 March 2021, its profit and its cash flows for the year endedon that date.
Basis for Opinion
3. We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs), asspecified under Section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards arefurther described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued by the Institute ofChartered Accountants of India together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we havefulfilled our other ethical responsibilities in accordance with these requirements and the Institute of CharteredAccountants of India’s (ICAI) Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion on the financial statements.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements :
G.R. KUMAR & CO LLPCHARTERED ACCOUNTANTSAudit | Consulting & Project Finance | Direct & Indirect Tax
9, Merry Life Apts, Doctors' Colony, Peda Waltair,VISAKHAPATNAM - 530 017, Andhra Pradesh.Tel : +91-891-2755223, 2793300 Fax : +91-891-2762009E-Mail : [email protected] Web-site : www.grk.in
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a) Attention is drawn to sub para No. 11b of Note No. 18B of the financial results relating to Deferred TaxAssets amounting to Rs. 7,090.48 Lakhs as of 31 March 2021 recognised by the Company on the basisof virtual certainty that sufficient future taxable income will be available against which such deferred taxassets can be realized. Though the Company did not have an Accounting Policy on “Accounting forTaxes on Income”, such an accounting treatment is mandated by Accounting Standard (AS) 22,Accounting for Taxes on Income” if virtual certainty can be established. The Company had earlierrecognized the Deferred Tax Asset in the FY 2008-09 and discontinued the practice for all the subsequentreporting periods.Pending recognition of Deferred Tax Asset during the preceding accounting periods andgiving affect for the same during the current FY 2020-21 is an accounting error and thus, would amount toprior period item under Accounting Standard – 5 “Net Profit or Loss for the Period, Prior Period Itemsand Changes in Accounting Policies” to the extent limited to accumulated losses till March 31, 2020.The Company has not recognized the tax shield (DTA) on the whole of accumulated losses. Though, themanagement coined it as Prudence and Conservative, it’s assertion as to virtual certainty cannot betested and analysed as at 31 March, 2021 due to plunge in global economy, in general and COVID-19pandemic, in specific and will be proved over a period of time in future in view of the contingency ofeconomic resilienceand also due to absence of time tested practices.
b) We draw attention to the Profit and Loss Statement and also sub para No. 5 of Note 18B of Notes onAccounts, which indicates that the Company has incurred a net loss before tax of Rs. 8,491.05 Lakhs andRs. 1401 Lakh's loss after tax during the year ended 31 March 2021, the Company’s current assetsincluding the non-moving inventory and aged receivables almost equal to its current liabilities (CurrentRatio being 1.02 times) as on 31 March 2021 and had mounting contingencies of Rs. 1,72,545 Lakhs asper sub para No. 1.3 & 1.4 of Note No. 18B of Notes. As per the discussions that we had with themanagement whether the existence of material uncertainty as to financial restructuring proposal, effectivenessof cost reduction and cost controls, achieving the break-even point, securing the workorders etc that maycast doubt about the Company’s ability to continue as going concern and as fully explained by it in NoteNo. 2 of the financial results on the initiatives taken, we believe the Company shall be able to continue asa going concern.
c) As described in sub para No. 1.3 & 1.4 of Note No. 18B of Notes on Accounts to the financial statementswith respect to demands raised by regulatory / statutory authorities and claim against the companyaggregating to Rs.1,72,545 Lakhs, the Company is a defendant in a lawsuit which contains an element ofuncertainty related to the outcome of the lawsuits against the company.
d) As stated in sub para No. 11a of Note No. 18B of Notes on Accounts to the financial statements, noprovision had been made in respect of interest of Rs. 4,218 Lakhs on RRMI funds for the years 2011-12and 2012-13. Further, as referred to in sub para No.11(b) of Note No.18B of Notes on Accounts to thefinancial statements, provision of Rs. 21,395 Lakhs has not been made up to the year ended 31 March2021 in respect of interest to GOI on RRMI Funds as per the terms of sanction.
e) Refer to sub para No. 18 of Note No. 18B of Notes to Accounts to the financial statements with respect toBalances of Debtors / Creditors which are in the process of confirmation / reconciliation and consequentadjustment, if any, upon confirmation / reconciliation. However, confirmations from creditors could not bereceived for delay in compiling the balances due to migration process. External confirmations that weresought from debtors selected on a random basis have not yet been received as on the date of report. In
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the absence of such confirmation, reconciliation, if any and other supportive audit evidence, we are unableto comment upon such Creditors and Debtors balances.
f) During the year, the company has changed the Accounting Policy regarding Inventory of Closed-out Projects(Refer sub para No. 3(v) of Note No. 18 of Notes to Accounts) on the basis comments by C&AG during theCertification Audit of Accounts for FY 2019-20. The change in Accounting Policy has resulted in decreaseof Profit for the year by Rs. 4.20 Lakhs, deferred tax asset by Rs. 1.47 Lakhs and Shareholders’ Funds byRs. 2.73 Lakhs. Though the effect of such accounting policy is considered immaterial as of 31 March2021, it will have an impact in the succeeding accounting periods especially after 5 years from the date ofdelivery of vessel, the effect of which cannot be estimated as on the date of report.
g) Refer to sub para No. 11c of Note No. 18B of Notes to Accounts to the financial statements, a level luffingcrane of a capacity of 70MT was collapsed on 1 August 2020 during its trial run during load bearingcapacity. The loss of damage included the cost on erecting and installation of Rs. 1,760 Lakhs, andcompensation of Rs. 500 Lakhs to the kith and kin of deceased employees. Our opinion is not modifiedwith respect of these matters.
Other Matter
a) PPE is carried at Rs. 12,380 Lakhs as at 31 March 2021 including freehold property measuring 6.595acres. However, title to the freehold immovable property in possession of the company to the extent of3.35 acres (Survey No. 1011) were not produced for verification.
b) During the FY 2019-20, the company had implemented S/4 HANA – SAP by migrating from legacy ERPSystem RAMCO. As the implementation of SAP is not yet completed for all the modules, we were unableto determine whether any adjustments might have been found necessary in respect of recorded orunrecorded transactions and the elements making up the Statement of Profit and Loss.
c) Financial reports were generated from a dedicated integrated server by mirroring data from one SAP serverto another where in Vendor Code, Customer Code, Document No., PO No., etc are not same in both theseservers.
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 management and Board of Directors are responsible for the other information. The other informationcomprises the Board’s Report including Annexures and Supplementary information to the Board’s Report inthe Annual Report but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.
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In connection with our audit of the financial statements, our responsibility is to read the other information and, indoing 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 Financial Statements
5. The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act,2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of thefinancial position, financial performance, and cash flows of the Company in accordance with the accountingprinciples generally accepted in India, including the accounting Standards specified under section 133 ofthe Act. This responsibility also includes maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate implementation and maintenance of accountingpolicies; making judgments and estimates that are reasonable and prudent; and design, implementation andmaintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy andcompleteness of the accounting records, relevant to the preparation and presentation of the financial statementthat give a true and fair view and are free from material misstatement, whether due to fraud or error.
6. In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s abilityto continue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless Board of Directors either intends to liquidate the Company or tocease operations, or has no 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 inaccordance 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 financial statements.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticismthroughout the audit. We also :
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud orerror, 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,intentional omissions, misrepresentations, or the override of internal control.
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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 arealso responsible for expressing our opinion on whether the Company has adequate internal financialcontrols system in 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,based on the audit evidence obtained, whether a material uncertainty exists related to events or conditionsthat may cast significant doubt on the Company’s ability to continue as a going concern. If we concludethat a material uncertainty exists, we are required to draw attention in our auditor’s report to the relateddisclosures in the financial statements or if such disclosures are inadequate, to modify our opinion.Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,future events or conditions may cause the Company to cease to continue as a going concern.Evaluate the overall presentation, structure and content of the financial statements including the disclosuresand whether the financial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
10. Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate,makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statementsmay be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work and (ii) to evaluate the effect of any identified misstatementsin 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 were ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements14. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government
of 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.
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15. 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 and
belief were necessary for the purposes of our audit;b. In our opinion, proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books;c. The financial statements dealt with by this report are in agreement with the books of account;d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under
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, 2021 taken on
record by the Board of Directors, none of the directors is disqualified as on 31 March, 2021 from beingappointed as a director 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 on31 March 2021 in conjunction with our audit of the financial statements of the Company for the year endedon that date and our report as per Annexure B expressed an unmodified opinion;
g. With respect to the other matters to be included in the Auditor’s Report U/s 197(16) of the act, in ouropinion and to the best of our information and according to the explanations given to us, the provisions ofSection 197(16) are not applicable to Government companies vide notification No. G.S.R. 463(E) F.No.1/2/2014-CL.V dated 5 June, 2015 issued by the Ministry of Corporate Affairs, Government of India; and
h. 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 accordingto the explanations given to us:i) the Company has disclosed the impact of pending litigations on its financial position in its financial
statements – Refer sub para No. 1.3 & 1.4 of Note No. 18B of Notes on Accounts to the financialstatements;
ii) the Company has made provision, as required under the applicable law or accounting standards, formaterial foreseeable losses, if any, on long-term contracts including derivative contracts; and
iii) there were no amounts which were required to be transferred to the Investor Education and ProtectionFund by the 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.
(SIVA SAI HARI BHASKAR NETI)Designated Partner
Membership Number: 204962UDIN : 21204962AAAABW6249
For G.R.KUMAR & CO LLPChartered Accountants
Firm Registration No: 04941S
Place : VisakhapatnamDate : July 28, 2021
Sd/-
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Annexure A to the Independent Auditor’s ReportThe Annexure referred to in paragraph 16 of our Independent Auditors’ Report of even date to the members
of the Company on the financial statements as of and for the year ended 31 March 2021Based on the audit procedures performed for the purpose of eporting a true and fair view on the financialstatements of the Company and taking into consideration the information and explanations given to us and thebooks 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
and situation of property, plant and equipment;(b) The Company has a regular program of physical verification of its property, plant and equipment
under which property, plant and equipment are verified in a phased manner over a period of threeyears, which, in our opinion, is reasonable having regard to the size of the Company and the natureof its assets. In accordance with this program, certain property, plant and equipment were verifiedduring the year and no material discrepancies were noticed on such verification;
(c) According to the information and explanations given to us and on the basis of our examinationof the records of the Company, title to the immovable property in possession of the company to theextent of 6.595 acres as disclosed in Note 5 to the financial statements, are held in the name ofthe Company, except for 3.35 acres (Survey No. 1011).
(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervalsduring the year, except for goods-in-transit. No material discrepancies were noticed on the aforesaidverification.
(iii) The Company has not granted any unsecured loans, to companies covered in the Register maintainedunder Section 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 coveredunder Section 185 of the Act. The provisions of section 185 and 186 of the Companies Act, 2013 are notapplicable to 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 ofprovisions of section 73 to 76 of the Act and The Companies (Acceptance of Deposits) Rules, 2014 (asamended). 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 madeby the Central Government for the maintenance of cost records under sub-section (1) of Section 148of the Act in respect of Company’s products and services and are of the opinion that, prima facie, theprescribed accounts and records have been made and maintained. However, we have not made adetailed examination of the cost records 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, dutyof excise, value added tax, cess and other material statutory dues, as applicable, with the appropriateauthorities. Further, no undisputed amounts payable in respect thereof were outstanding at theyear-end for a period of more than six months from the date they became payable.
(b) The dues outstanding in respect of income-tax, sales tax, duty of customs, duty of excise andvalue added tax on account of any dispute, are as follows :
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(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.(xiii) According to the information and explanations given to us and based on our examinations of the records of the
Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act, where
Sl. Name of the Nature of Amount Amount Period to Forum whereNo. Statute the Dues (Rs. In Lakhs) Paid/Adjusted which the dispute is Finance Act 199 (Rs in lakhs) amount relates pending1 GVMC Property Tax 13.39 1984-1995 High Court2 EPF & MP Act, Penal Interest 109.78 2002-2005
1952 High Court3 ESI Act ESI Dues 107.21 01.04.1998
+ Interest to30.09.2000 High Cout
ESI Dues 169.61 1985-1993 High Court4 Finance Act, Service Tax 472.70 2008-2014 CESTAT
1994 Service Tax 148.28 2008-2014 CESTATService Tax 2081.31 2006-2008 Supreme CourtService Tax 180.93 2006-2013 CESTAT
5 AP VAT Act VAT 217.00 43.75 2006-2011 STAT, VizagVAT 200.00 4.98 2012-2013 AJC (ST),VAT 116.00 2013-2014 AJC (ST),VAT 1037.00 104.00 2011-2012 High CourtVAT 82.00 2011-2012 AJC (ST),
6 CST Act CST 159.00 79.96 2013-2014 AJC (ST),7 AP VAT VAT 32.00 4.37 2011-2012 AJC (ST)
VAT 24.00 6.00 2015-2016 AJC (ST)VAT 473.00 2012-2013 STAT, VizagVAT 23.00 2012-2013 High CourtVAT 2.31 2015-2016 AJC (ST)Total 5648.52 243.06
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applicable. 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.
(xiv) 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 not applicableto the Company.
(xv) 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.
(xvi) 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.
(SIVA SAI HARI BHASKAR NETI)Designated Partner
Membership Number: 204962UDIN : 21204962AAAABW6249
For G.R.KUMAR & CO LLPChartered Accountants
Firm Registration No: 04941S
Place : Visakhapatnam Date : 28 July 2021
Sd/-
2020-21
6 7
Annexure B to the Independent Auditor's ReportThe Annexure referred to in paragraph 16(f) under 'Report on Other Legal and Regulatory Requirements' sectionof our report of even dateIndependent Auditor's Report on the Internal Financial Controls Over Financial Controls under clause (I) of sub-section 3 of Section 143 of the Companies Act, 2013 (the "Act")
1. In conjunction with our audit of the financials statement of Hindustan Shipyard Limited ("the Company") as atand for the year ended 31 March 2021, we have audited the internal financial controls over financial reporting("IFCoFR") of the Company as at that date.
Management's Responsibility for Internal Financial Controls2. The Company's Board of Directors is responsible for establishing and maintaining internal financial controls
based 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 Controls overFinancial Reporting ('the Guidance Note') issued by the Institute of Chartered Accountants of India ("the ICAI").These responsibilities include the design, implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of the Company's business, includingadherence to the Company's policies, the safeguarding of its assets, the prevention and detection of frauds anderrors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financialinformation, as required under the Act.
Auditor's Responsibility3. Our responsibility to express an opinion on the Company's internal financial controls over financial reporting
based 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, assessing therisk 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 our auditopinion on the Company's IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting6. A company's IFCoFR is a process designed to provide reasonable assurance regarding the reliability of financial
reporting 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;
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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 Reporting7. Because of the inherent limitations of IFCoFR, including the possibility of collusion or improper management
override 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.
Opinion8. In our opinion, the Company has, in all material respects, maintained adequate IFCoFR as at 31 March 2021,
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 IFCoFR wereoperating effectively as at 31 March 2021.
(SIVA SAI HARI BHASKAR NETI)Designated Partner
Membership Number: 204962UDIN : 21204962AAAABW6249
For G.R.KUMAR & CO LLPChartered Accountants
Firm Registration No: 04941S
Place : VisakhapatnamDate : 28 July 2021
2020-21
6 9
Annexure C to the Independent Auditor's Report(As referred to in Paragraph 17 under 'Report on Other Legal and Regulatory Requirements' section of our reportof even date to the members of the Hindustan Shipyard Limited on the financial statement for the year ended 31March 2021)As required by Section 143 (5) of the Companies Act 2013 we report, on the basis of such checks of the booksand records of the Company as we considered appropriate and according to the information and explanationsgiven to us during the course of our audit and the audit procedures conducted by us, on the directions and sub-directions issued by Comptroller & Auditor General of India, to the extent applicable, that :
1. Whether the company has system in placeto process all the accounting transactionsthrough IT system?If yes, the implications of processing ofaccounting transactions outside IT systemon the integrity of the accounts along withthe financial implications, if any, may bestated.
2 Whether there is any restructuring of anexisting loan or cases of waiver/write off ofdebts/loans/ interest etc. made by a lenderto the company due to the company'sinability to repay the loan? If yes, thefinancial impact may be stated. Whethersuch cases are properly accounted for?(In case, lender is Government Company,then this direction is also applicable forstatutory auditor of Lender Company.)
The company had implemented S/4 HANA -SAP by migrating fromthe existing accounting application RAMCO with the go-live datebeing 26 August 2019.Still HR Module, CO Module, Real Estate Module, S&D Module,PPM Module etc., have not been put into operational.This has led the entity to process accounting transactions outsideIT system which undermines the integrity of accounts.Cost sheets are maintained manually in Microsoft Excel Sheets asCO Module (a component in FICO in SAP)is not yet operational.
No. There has not been any restructuring or waiver / write-off of anexisting loans / debts / interest etc either due to HSL's inability torepay the loan or otherwise.However, a financial restructuring proposal has been pending withthe Ministry of Defense since February 2013.As per the revised proposal, HSL seeks to convert Rs. 37,221 Lakhsbeing the Loan in perpetuity, sanctioned by GoI (GL Code : 20201000)into Equity which would reduce the long term loans and improve theDebt / Equity ratio. (D / E Ratio).Current Liabilities include Rs. 9,260 Lakhs being the interest ofRRMI grant which is also sought to be converted into Equity.Refer Para 13 of Note 18B of Notes to financial statements, wherein the Company has submitted a proposal for revised financialrestructuring for Rs. 46,500 Lakhs; being aggregate of the above,without any cash flow which improves the Net Worth of the company.However, as at 31 March 2021 the restructuring proposal waspendingfor approval before the Ministry of Defense and Ministry of Finance.HSL is a borrowing concern and not a lending company. However,the modified directions by CAG u/s 143(5) of Companies Act, 2013were equally applicable to both the borrowing concern and lendingconcern. Our response to the Sl. No. II of the CAG's directions wasbased on the fact that HSL is a borrowing concern.
Sl. Direction / Sub-Direction Our CommentsNo.
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No grants / subsidies were received from Central / State Governmentagencies during the year under audit. However, replenishment offunds utilized in earlier accounting periods in contravention of termsand conditions is still pending as at the reporting date viz., 31 March2021.A narrative on the receipt of funds and their utilization is explainedhere under :Hindustan Shipyard Limited has received a fund of :1. Rs. 45,736 Lakhs (Rupees Four Hundred Fifty Seven Croresand Thirty Six Lakhs) for Refurbishment & Replacement of Machineryand infrastructure for undertaking the construction of Landing PlatformDock (LPDs) and Rs. 20,000 Lakhs (Rupees Two Hundred Crores)as grant in aid (GL Code : 20102000) from Government of India forrepair and renovation of the damaged assets of the yard in HudhudCyclone.2. Capital grant of Rs. 20,000 Lakhs remained unutilized for thespecific purposes even as at 31 March 2021 due to non-availabilityof funds for disposal. As per the accounting policy, Capital grants /subsidy are credited to capital reserve and retained till the requisiteconditions are fulfilled. However, its utilization seems to be a virtuedue to paucity of funds and it had been almost 6 ½ years since theHudhud cyclone disaster.RRMI grant was, in fact, used for the purposes not stated in theAnnexure to the sanction letter. As on 31 March 2021 Rs.31,600Lakhs was utilized for Ship Building and Ship Repairs works,Gratuity payments, Yard running expenses etc. which were tabulatedhere under :
3. Whether funds (grants / subsidy etc.,)received/receivable for specific schemesfrom Central/State Government agencieswere properly accounted for/utilized as perits term and conditions?List the cases ofdeviation.
Purpose AmountRs.Crores
Ship Building and Repairs 201Gratuity 103Yard running expenses 12Total 316
(SIVA SAI HARI BHASKAR NETI)Designated Partner
Membership Number: 204962UDIN : 21204962AAAABW6249
For G.R.KUMAR & CO LLPChartered Accountants
Firm Registration No: 04941S
Place : VisakhapatnamDate : July 28, 2021
Sd/-
2020-21
7 5
BALANCE SHEET AS AT 31-MARCH-2021 in lakhs
Sl.No Particulars Note No. As at As at 31-Mar-2021 31-Mar-2020
I EQUITY AND LIABILITIESi Shareholders’ Funds
Share capital 1 30,199.22 30,199.22Reserves and surplus 2 (1,19,624.84) (1,18,224.27)
ii Capital Grant 3 A 20,000.00 20,000.00RRMI Fund 3 B 9,909.41 11,263.14TOTAL (i+ii) (59,516.21) (56,761.91)
iii Non-current Liabilities 4Long term borrowngs 54,121.25 54,121.25Other long term liabilities 30,247.29 30,302.71Long term provisions 6,808.47 8,489.86Total - Non-current Liabilities 91,177.01 92,913.82
iv Current Liabilities 5Short term borrowings - 168.93Trade payables 22,610.78 27,368.51Other current liabilties 71,555.81 66,305.67Short term provisions 8,244.11 9,720.81Total Current Liabilities 1,02,410.70 1,03,563.92
TOTAL (i+ii+iii+iv) 1,34,071.50 1,39,715.83II ASSETSi Non-current Assets 6
Property, Plant and EquipmentTangible assets 12,380.63 12,705.51Intangible assets - -Capital work-in-progress 1,130.37 2,651.74
Long term loans and advances 13,591.63 7,713.30Other non-current assets 1,742.34 5,052.50Total - Non-current Assets 28,844.97 28,123.05
ii Current Assets 7Current investments - -Inventories 5,490.95 11,387.54Trade receivables 32,912.65 39,351.33Cash and Bank balances 22,075.98 13,068.21Short term loans and advances 13,175.28 12,641.65Other current assets 31,571.67 35,144.05 Total - Current Assets 1,05,226.53 1,11,592.78TOTAL (i+ii) 1,34,071.50 1,39,715.83Significant 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 dateFor GR Kumar & Co LLP.Sd/- Sd/- Chartered AccountantsS V RAMBABU Cmde Hemant Khatri, 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 : 21204962AAAABW6249Date : 28/07/2021
7 6 2020-21
PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 MARCH 2021 in lakhs
Sl.No: Particulars Note No. Year ended Year ended31-March-2021 31- March-2020
III INCOMETurnover (Revenue from Operations) 8 47,794.72 57,354.21Less: Taxes & Duties (8,467.85) (7,856.71)Net turnover 39,326.87 49,497.50Other Income 9 1,005.20 2,148.57Total Income 40,332.07 51,646.07
IV EXPENSESMaterials Consumed 10 16,896.49 19,244.55Sub-contracting and Other Direct Expenses 11 14,064.40 15,644.18Employee Benefits 12 11,653.57 13,088.59Other Expenses 13 3,439.64 3,573.99Interest & Finance costs 14 546.05 486.91Depreciation 432.35 436.82Provisions and Losses (net) 15 (405.50) (3,793.38)Prior Period income (net) 16 15.40 (36.43)Total Expenditure 46,642.40 48,645.23
V Profit before Exceptional & Extraordinary Items and Tax (III-IV) (6,310.33) 3,000.84VI Exceptional Items - (Income) / Expenditure 17 2,180.72 1,697.66VII Profit Before Extraordinary Items and Tax (V-VI) (8,491.05) 1,303.18VIII Extraordinary Items - Income / (Expenditure) - -IX Profit Before Tax (VII-VIII) (8,491.05) 1,303.18X Income Tax for the year - -
MAT - Credit entitlement - -Deferred Tax - Net (Prior Period) 4,522.32 -Deferred Tax - Net (Current) 2,568.16 -
XI Profit / (Loss) for the period (IX-X) (1,400.57) 1,303.18XII Earnings per Equity Share (Basic) (46) 43
Notes 8 to 17 form an Integral Part of Profit and Loss statement 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 Cmde Hemant Khatri, 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 : 21204962AAAABW6249Date : 28/07/2021
2020-21
7 7
NOTES FORMING PART OF THE BALANCE SHEET AS AT 31-Mar-2021 in lakhs
I EQUITY AND LIABILITIESNote - 1 As at As at
31-March-2021 31-March-2020SHARE CAPITALAuthorised30,40,000 - Equity Shares of 1000 each(Previous year 30,40,000- Equity Shares of 1000 each) 30,400.00 30,400.00Issued, Subscribed and fully paid-Up30,19,922 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 30,199.22Notes: Subscribed and paid-up share capital includes: Equity shareholder holding more than 5% equity shares along withthe number of equity shares held is as given below :
Name of the shareholder As at As at31-March-2021 31-March-2020
Number of shares Number of sharesPresident of India (100%) 30,19,922 30,19,922
in lakhsNote - 2 As at As at
31-March-2021 31-March-2020RESERVES AND SURPLUSCapital ReserveBalance in Capital Reserve 9.50 9.50DeficitOpening Balance (1,18,233.77) (1,19,536.95)Add: Net Profit / (Loss) for the current period (1,400.57) 1,303.18Closing Balance (1,19,634.34) (1,18,233.77)
Total - Note : 2 (1,19,624.84) (1,18,224.27)
in lakhsNote - 3 (A & B) As at As at
31-March-2021 31-March-20203 A) Capital Grant
Hud Hud Cyclone Grant from GoI 20,000.00 20,000.003 B) RRMI Fund - Capital Expenditure funded through Naval Projects
Transfer from RRMI Advance - (Refer Sub-note:1) 11,361.61 12,599.20Less: Depreciation and R & M expenditure of RRMI Assets 1,452.20 1,336.06
Total - 3 (B) 9,909.41 11,263.14Total - Note : 3 (A + B) 29,909.41 31,263.14
Sub-note: 1 RRMI Expenditure incurred out of RRMI Advance upto year end has been accounted.
7 8 2020-21
in lakhsNote - 4 As at As at
31-March-2021 31-March-2020NON-CURRENT LIABILITIESLong-term BorrowingsUnsecuredLoan from Govt. for OPF Liability 16,900.00 16,900.00GoI Loan in perpetuity 37,221.25 37,221.25
54,121.25 54,121.25Other Long-term Liabilities - -Deposits 263.71 208.07Advances from Customers & Interest accrued thereon (Refer Sub-note:1) 498.58 498.58Advance from GoI for RRMI (Refer Sub-note:2) 29,485.00 29,596.06
30,247.29 30,302.71Long-term ProvisionsProvision for Employee BenefitsGratuity 4,031.87 5,301.53Leave Salary (Non-funded) 2,776.60 3,188.33
6,808.47 8,489.86 Total - Note : 4 91,177.01 92,913.82
Sub Note:1) Includes Net amount payable to ONGC of Rs. 484.65 Lakhs in line with PMA Awards(2018) on Panna,BH - 22 /25 and IE & EL.
2) The said amount is unspent as on 31 Mar 2021 out of the total RRMI Advance of Rs. 45736 lakhs.
2020-21
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in lakhsNote - 5 As at As at
31-March-2021 31-March-2020CURRENT LIABILITIESShort-term BorrowingsSecured loansCash Credit (Refer Sub-note : 1) - 168.93Trade Payables 22,610.78 27,368.51Other Current LiabilitiesAdvances from Customers 62,152.67 50,327.34Other Liabilities (74.68) 6,426.85Deposits 217.82 291.48Interest payable to GoI on RRMI Funds 9,260.00 9,260.00
71,555.81 66,305.67Short-term ProvisionsProvision for Employee BenefitsGratuity 1,890.58 1,877.43Leave salary 680.11 500.75Other Provisions:Liquidated Damages (Refer Sub-note : 2) 4,262.24 5,124.16Provision for Future Losses 651.39 1,390.68Guarantee Repairs 541.24 609.24Provision for income tax 218.55 218.55
8,244.11 9,720.81Total - Note : 5 1,02,410.70 1,03,563.92
Sub-notes:1 Cash Credit facility from Indian Bank & Andhra Bank is secured by hypothecation of Property, Plant & Equipment and
Current Assets of the Company (Disclosed under Current assets (Note-7) view Debit balance as on 31st March 20212 Comprises of Rs. 3859.08 Lakhs towards Ship building and Rs 403.16 Lakhs for Ship repairs.
8 0 2020-21
in lakhsII ASSETS
Note - 6 As at As at31-March-2021 31-March-2020
NON-CURRENT ASSETSProperty, Plant and Equipment :
Gross Block (Tangible) 21,254.28 21,287.44Depreciation 17,594.18 17,193.34
Net Block- Tangible 3,660.10 4,094.10Gross Block (RRMI) 13,535.04 12,611.51Depreciation (RRMI) 4,814.50 4,000.10
Net Block- (RRMI Assets) 8,720.54 8,611.41Gross Block (In-tangible) 306.43 306.43
Depreciation 306.43 306.43Net Block- Intangible - -
Capital Works in Progress - -Capital Works in Progress (RRMI) (Refer sub-note:1) 1,130.37 2,651.74
Total Capital work-in-progress 1,130.37 2,651.74 13,511.01 15,357.25
Long term Loans and Advances (unsecured)Deposits with Customs, Port Trust and other Govt. Agencies 542.62 542.62Advance to Suppliers 2.07 2.07Income Tax deducted at source 1,102.84 2,333.17Advance Tax 99.08 99.08MAT Credit entitlement (Refer sub-note:2) 4,701.15 4,701.15Deferred Tax Asset (Net) 7,090.48 -Others 53.39 35.21
13,591.63 7,713.30Other Non-current AssetsTrade Recievables 1,867.70 5,198.66Less: Provision for Bad debts (1,626.80) (1,647.60)Accrued Income (OPF) (Refer sub-note-3) 1,501.44 1,501.44
1,742.34 5,052.50Total - Note : 6 28,844.98 28,123.05
Sub-notes:1 The Capital Work-in-Progress as on 31 Mar 2020 includes Rs.1772.96 Lakhs towards 70T LL Anupam Crane. As the said crane totally collapsed during load
trials on 01 Aug 2020, the carrying amount of Rs.1760.00 Lakhs (after adjustment of retention amount of Rs.12.96 Lakhs) has been charged off asexceptional item for the year 2020-21. The claim settlement against M/s. Anupam Industries Ltd is under arbitration (Refer note 17).
2 MAT credit entitlement Rs.4482.60 lakhs paid in 2010-11 is eligible for carry forward upto 2025-26, Rs.83.24 lakhs ac counted in 2016-17 is eligible forcarry forward upto 2031-32 and Rs.135.31 lakhs accounted in 2017-18 is eligible for carry forward upto 2032-33
3 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 .
8 2 2020-21
in lakhsNote - 7 As at As at
31-March-2021 31-March-2020CURRENT ASSETSInventories (Refer Sub-note: 1)Steel 1,436.58 1,840.44Stores & Spares , equipment and other Materials 3,478.94 5,086.37Timber 68.74 11.56Materials-in-Transit and under inspection 378.10 4,454.26Steel Cut Pieces on shop floor and Scrap (Refer Sub-note: 2) 182.63 48.95
5,544.99 11,441.58Less : Provision for : Obsolescence of materials 54.04 54.04
5,490.95 11,387.54Trade Receivables (Refer Sub-note:3)UnsecuredDebts outstanding for more than 6 months:Considered good 15,151.97 15,401.33Considered doubtful - -
15,151.97 15,401.33Other debts, considered good 17,760.68 23,950.00
32,912.65 39,351.33Cash and Bank balancesCash on Hand 4.18 7.68Balances with scheduled banks in:Term and other Deposit accounts 15,300.01 12,937.24Current accounts 4,991.30 123.29Cash Credit (Refer Sub Note :1 of Note - 5) 1,780.49 -
22,075.98 13,068.21Short-term Loans and AdvancesEmployees 14.23 16.31Suppliers of materials & services 13,953.45 11,551.99Others (816.16) 998.97Prepaid Expenses 150.95 201.59
13,302.47 12,768.86Less : Provision for Doubtful Advances 127.19 127.21
13,175.28 12,641.65Other Current AssetsInterest Accrued on term deposits 428.61 646.06Accrued Income (Refer Sub-note: 4) 31,143.06 34,497.99
31,571.67 35,144.05 Total - Note : 7 1,05,226.53 t1,11,592.78
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 Includes Trade Receivables: Due for Approval - Rs. 16908 Lakhs, Due for Fund Allocation - Rs. 12293 Lakhs and VPT
dues pending for adjustment against Land Rentals - Rs. 989 Lakhs.4 Accrued Income is in respect of Ship Building, Ship Repairs and Submarine.
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Note - 8 Year ended Year ended31- March-2021 31- March-2020
Turnover (Revenue from Operations)a) Sale of products
Shipbuilding - Contractual Income 27,058.81 26,889.15b) Sale of services -
Services 19,644.26 9,186.95Dry dock hire charges 127.85 20.85Wet basin hire charges 83.91 1.70DDSR Other services - 416.02Ship repair income 19,856.02 9,625.52
c) Submarine Retrofit - 20,303.60d) Other operating revenue
- Misc. Works - Shipbuilding - 298.51- Misc. Works - Submarine Division 676.10 -- Sale of scrap 203.79 237.43Other Operating income 879.89 535.94Total - Note : 8 47,794.72 57,354.21
in lakhsNote - 9 Year ended Year ended
31- March-2021 31- March-2020(a) Other Income
Interest from banks & others Rs. 657.16 LakhsLess: Interest payable to GoI(Refer Sub-note No.1) Rs. 357.64 Lakhs 299.52 988.84Rent (Net of GST of Rs. Lakhs) 210.59 185.35Fines and Forfeitures 196.10 99.15Foreign Exchange variation 54.08 (71.02)Miscellaneous Receipts 244.91 946.25Total - Note : 9 1,005.20 2,148.57
Sub-notes:1Interest payable on Advances received from Indian Navy (VC-11184) Rs. 357.64 Lakhs.
in lakhsNOTES FORMING PART OF THE PROFIT AND LOSS STATEMENT
FOR THE YEAR ENDED 31-March-2021
8 4 2020-21
in lakhsNote - 10 Year ended Year ended
31-March-2021 31-March-2020Materials Consumed
Steel 486.51 3,826.36Stores & Spares 1,481.76 1,571.60Timber 2.90 0.81Direct Materials, Machinery & Equipment used in
Ship Construction 10,826.50 11,833.31Shiprepair 4,056.61 379.89Submarine Retrofit - 1,609.19
16,854.28 19,221.16Add: Stores procurement expenses 42.21 23.39Total - Note : 10 16,896.49 19,244.55
in lakhsNote - 11 Year ended Year ended
31-March-2021 31-March-2020Sub-contracting & Other Direct Expenses
Sub contract & off-loaded job expenses in :Ship Construction 1,797.83 3,263.33Ship Repairs 6,876.73 2,197.56Submarine Retrofit - 2,747.99
Other Direct Expenses in :Ship Construction 5,129.58 2,070.17Ship Repairs 1.99 16.67Submarine Retrofit 124.07 5,307.54Builders Risk Insurance in Ship Constuction 134.20 40.92 Total - Note : 11 14,064.40 15,644.18
in lakhsNote - 12 Year ended Year ended
31-March-2021 31-March-2020Employee Benefits
Salaries, Wages, Allowances etc., 9,520.52 9,789.16Contribution to Provident Fund and other funds 1,024.39 799.64Gratuity 510.66 1,664.44Leave salary 231.73 504.31Expenses on Training, Stipend etc. 58.64 13.33Employees Welfare Expenses 307.63 317.71Total - Note : 12 11,653.57 13,088.59
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in lakhsNote - 13 Year ended Year ended
31-March-2021 31-March-2020Other expensesPower, Fuel and Water (net of recoveries) 782.37 728.87Rates and taxes 23.18 8.13Fire and Other Insurance 123.65 60.41Rent 406.11 396.47Repairs and Maintenance to :Plant and Machinery 360.40 589.07Buildings 263.70 190.94Other Assets 162.27 18.95Printing and Stationery 8.52 3.90Local Conveyance charges 86.78 122.01Travelling Expenses 10.58 84.29Communication Expenses 12.60 3.12Advertisement and Publicity 11.00 23.13Demurrage Charges 3.90 -Directors' Fees and Expenses:Directors’ Fees 0.48 0.65Travelling Expenses 4.02 11.63Auditors’ Remuneration :Statutory Audit 3.50 3.50Expenses 0.07 0.20 Consultant & Legal expenses 36.63 125.85 Expenses on Security 485.32 565.73 Expenses on Fire Services 133.25 104.87 Miscellaneous Expenses 521.31 532.27 Total - Note : 13 3,439.64 3,573.99
in lakhsNote - 14 Year ended Year ended
31- March-2021 31- March-2020Interest & Finance ChargesInterest on :Bank Loans & Cash Credit 115.97 149.13Others 251.42 274.92Bank Charges 178.66 62.86Total - Note : 14 546.05 486.91
8 6 2020-21
in lakhsNote - 15 Year ended Year ended
31-March-2021 31-March-2020Provisions made:Liquidated Damages 49.31 323.59Reduction in SR Bills 323.99 483.68Bad & Doubtful debts - 491.80Provision for Future losses written off(net) (739.29) 155.59Provisions written off (39.51) (5,248.04)Total - Note : 15 (405.50) (3,793.38)
in lakhsNote - 16 Year ended Year ended
31-March-2021 31-March-2020Prior Period AdjustmentsA Income
Tender fees and other misc items. 11.97 36.90 11.97 36.90
B ExpenditureMiscellaneous 27.37 0.47
27.37 0.47Net Expenditure / (Income) - Total Note: 16 15.40 (36.43)
in lakhsNote - 17 Year ended Year ended
31-March-2021 31-March-2020Exceptional items
Loss on account of 70T LL Crane (Refer Sub-Note No.1) 2,265.05 -Interest on VC-11141 - 1,433.87Reduction in Inventory (scrap) (75.43) 143.79(Profit) / Loss on sale of Assets (8.90) 0.01R & M Expenditure out of RRMI fund 637.80 524.82Depreciation on RRMI Assets 814.40 811.23RRMI Asset Grant (1,452.20) (1,336.06)Differential Interest on PF - 120.00Total - Note : 17 2,180.72 1,697.66
Subnotes1 The loss on account of Crane accident during load trials on 01 Aug 2020 includes Rs.1760 Lakhs (refer sub-note-1 ofNote-6) representing value of capital work-in-Progress, ex-gratia of Rs. 5 Cr paid to the families of the 10 (Ten) deceasedmembers and miscellaneous expenses of Rs.5 Lakhs (details at note-11c of 18B-Notes on Accounts). The claim settlementagainst M/s. Anupam Industries Ltd is under arbitration.
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Note – 18Notes Forming Part of the Accounts for the year ended 31stMarch 2021A. ACCOUNTING POLICIES1. 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 onaccrual basis 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),incidental expenses relating to cost of acquisition, interest during construction period and the cost of installation/erection as applicable.
(b) Intangible AssetsExpenditure incurred on software will be capitalized under intangible assets and shall include expenditure onprocurement of software, acquisition / development of software and up-gradation / enhancement of existing softwareresulting in enhancement of economic benefits.However all embedded software without separate value and included in hardware is capitalized along with cost ofhardware.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
is lower. Obsolescence is provided for on the basis of technical estimate.ii) Direct Materials and Stores items in offshore platform activities are valued at cost or net realizable value
whichever is lower under specific identification and FIFO respectively.iii) Cost includes expenses of procurement including all taxes and duties other than VAT up to 30 Jun 2017 / net of
GST w.e.f 01 Jul 2017.iv) Scrap is valued at estimated realisable value.v) Machinery & Equipment relating to closed-out projects:
Project specific equipment not moving for 5 years from the date of delivery of a vessel are valued at 50%.Provision for residual 50% for such equipment would be made on review.
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 reportingdate bears to the estimated total contract cost for completion.Cost for the above purpose includes value of direct materials including Machinery and other ship borneequipment issued for specific ship, direct labour, direct expenses and general overheads excludingadministrative overheads and overheads attributable to idle time.
ii) In respect of ships delivered and submarine refits completed during the year at the balance price includingclaims for 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 atcost or realizable value, whichever is lower. Profit if any is recognized in the year in which repair iscompleted.iv) In respect of ship repair contracts extending beyond 12 months, is recognized as per the policy followedfor shipbuilding contracts as stated above.
8 8 2020-21
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 of
Rebates and other Deductions under the respective contracts.D. Claims in respect of Insurance are accounted for on acceptance basis taking into account the acceptances received
within 15 days of the end of the financial year.E. The income in respect of all the activities is captioned as “Turnover”.5. GOVERNMENT GRANTS:
i) Capital grants / subsidy:Capital grants / subsidy relating to specific assets are reduced from the gross values of assets and capitalgrants for project capital subsidy are credited to capital reserve and retained till the requisite conditions arefulfilled.
ii) Revenue grants / subsidy:a) Grant-in-aid received from Government of India for implementation of Voluntary Retirement Scheme is matched
with related costs through Profit & Loss Account. Unutilized grants are shown under Current Liabilities.b) Price subsidy received / receivable from Government of India in respect of ships is considered as income on the
basis of percentage completion of the respective ships.c) All other revenue grants are credited to Profit & Loss Account.
6. Goods & Service Tax (GST):GST wherever applicable is accounted for as and when the products are cleared from the yard.
7. DEPRECIATION:Depreciation is provided for under straight-line method in accordance with Schedule 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%.The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:
8. BORROWING COSTS:a ) Borrowing Costs relating to the acquisition/construction of qualifying assets are capitalized until the time allthe substantial activities necessary to prepare the qualifying assets for their intended use are complete.b) A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.c) All other borrowing costs are charged to revenue.
Asset Class YearsBuildings 60Plant &Machinery 15Furniture & Fixtures and Electrical 10Computer Hardware 3Software 5
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9. EMPLOYEE BENEFITS:(i) Defined Contribution PlanEmployee Benefits in the form of Employee Pension Fund is considered as Defined Contribution plan and thecontributions are charged to the Profit & Loss Account of the year when the contributions to the said fund are due.(ii) Defined Benefit PlanRetirement Benefit in the form of Gratuity, is considered as Defined Benefit Obligation and is provided for on the basisof an actuarial valuation using the projected unit credit method as at the date of Balance Sheet. Employee Benefit inthe form of Employee Provident Fund is considered as Defined Benefit plan and the contributions are charged to theProfit & Loss Account of the year when the contributions to the said fund are due.(iii) Other Long Term BenefitsLong-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 Companyis charged 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 theInstitute of Chartered Accountants of India.
12. PROVISION FOR SUNDRY DEBTORS:Provision is made for all debts considered doubtful of recovery having regard to the following consideration –
a) Time barred debts from the Government / Government departments / Government companies are generally nottreated as doubtful debts.
b) Provision for bad and doubtful debts is generally made for debts outstanding for more than three years,excepting those which are considered realizable based on a case to case basis.
13. FOREIGN EXCHANGE TRANSACTIONS:Assets and liabilities in foreign currencies are translated at rates of exchange prevailing as on the Balance Sheetdate. Gains / losses arising out of fluctuations in exchange rates both on settlement and on conversion of liabilitiesare adjusted to 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 of completion of the project.(ii) “Completion of Project” is till the date that all the issues between the parties are mutually settled by them
other than resorting to legal means.
9 0 2020-21
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 rationalbasis over the useful life of the asset, i.e., such amounts are allocated to income over the periods and in thesame proportion in 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 liabilitybasis keeping in view the delay caused by the factors beyond the control of company.(iii) Guarantee repairs:Provision for liability for guarantee repairs made in the accounts at the time of delivery on the basis of estimation.(iv) Disclosure of expenditure:All items of expenditure are stated under nominal heads at gross figures and the aggregate amount allocated/transferred to other heads on functional basis is shown separately except direct labour.
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1.1.11.2
1.3
1.3.1
1.3.2
1.3.31.3.41.3.51.3.61.3.71.3.8
Contingent LiabilitiesIrrevocable letters of credit outstandingCounter guarantees given to banks for guarantees issued on behalf ofthe companyDemands raised against the company by various authorities, contestedat various courts, appellate authorities etc. and not provided for:Penal interest on belated remittances of Provident Fund contributionsduring the period from May 2002 to Feb., 2005, contested u/s 7(i) ofEPF & MP Act, 1952. HSL had approached Hon'ble High Court ofAndhra Pradesh after dismissal of appeal by PF Appellate Tribunal.The Hon'ble High Court has issued stay orders on PF Appellate Tribunalorder subject deposit of a sum of 35.00 lakhs by the company.Accordingly, HSL had deposited the said amount. Presently, the caseis pending in Hon'ble High Court of Andhra Pradesh.(a) ESI dues in respect of 'C' series workmen for the period from1-4-1998 to 30-9-2000 together with interest thereon ( 6.64 lakhs paidunder 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.Service tax demand in respect of INS SindhukeerthiService tax demand in respect of Ship RepairsVAT demands in respect of Ship RepairsIncome Tax Demands in respect of ROE ContractsDemands of customers & suppliers of goods and services.Demands in respect of service matters of employees having financialimpact.
Total [1.3]
9257.00 8204.96103400.00 68830.40
109.78 109.78
107.21 107.21
169.61 169.612702.30 2702.30180.93 180.93
2365.00 1837.00- 120.04
1720.56 7169.981418.33 1403.55
8773.72 13800.40
2020-21 2019-20B. NOTE ON ACCOUNTS ( in lakhs)
9 2 2020-21
Claims against the company, which are under arbitration and not providedfor:Claims of Essar Oil Limited (EOL) towards OPF works (net of provisionof Rs. 10800 lakhs). In this regard, the amount awarded by the solearbitrator in the dispute between HSL & ONGC (pertaining to EOLpayments has not been considered). The provided amount of Rs. 10800lakhs has been paid to EOL as directed by High Court for obtainingwithdrawal of attachment of Property, Plant and Equipment and grantof interim stay and to be heard on the revised petitions of HSL.
a) On rejection of claims towards L.D. and other claims by HSL, M/sGood Earth Maritime Ltd., (G.M.L.) invoked arbitration clause for thevessel No. VC 11115, VC 11116, VC 11117, VC-11136, VC-11137, VC-11138 and VC-11139 the same is under arbitration.b) In respect of Vessel No. VC 11118, VC 11138 to VC 11139 and VC11140 which were delivered, no provision towards LD is made, sincethe same is not applicable as per Contracts.
Total [1.4]
19346.46 19346.46
144425.09 135656.62
163771.55 155003.08
1.4
1.4.1
1.4.2
2. As per Accounting Standard 15 ’Employees Benefits’, the disclosure of Employee Benefits as defined in theAccounting Standard are given below:Defined Contribution PlanContribution to Defined Contribution plan, recognized as expense for the year are as under:
( in lakhs) 2020-21 2019-20
Employer’s Contribution to Pension Fund 163.68 170.51Defined Benefit PlanThe employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation isdetermined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period ofservice as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build upthe final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.
2020-21 2019-20 ( in lakhs)
2020-21
9 3
II.Reconciliation of opening and closing balances of fair value of plan assets
Details 2020-21 2019-20Fair value of plan assets at beginning of the period. 7.00 6.74Expected return on plan assets 0.55 0.53Contribution 1767.28 1654.18Benefits paid (1767.28) (1654.18)Actuarial (loss)/gain on obligation (balancing figure) (0.30) (0.26)Fair value of Plan Assets as at the end of the period 7.25 7.00
III Reconciliation of fair value of assets and obligations as at 31/03/2021 ( in lakhs)Leave Encashment(Unfunded) Sick Leave
(Unfunded)Fair value of plan assets (Current Year) 7.25 - - (Previous year) 7.00 - -Present value of obligation (Current Year) 5929.45 2829.33 627.37 (Previous year) 7185.97 3021.42 667.65Amount recognized in Balance Sheet (Current Year) 5922.20 2829.33 627.37(Previous year) 7178.97 3021.42 667.65
Gratuity
( in lakhs)
Details Gratuity Earned Sick Leave(Funded) Leave (Unfunded)
Encashment(Unfunded)
Defined Benefit obligation at beginning of the year. ( Current Year) 7185.97 3021.42 667.65(Previous year) 6962.71 2763.72 573.95
Interest Cost (Current Year) 415.95 199.20(Previous year) 459.56 201.41
Current Service Costs (Current Year) 198.93 100.92 (40.28)(Previous year) 214.98 85.32 93.71
Benefits Paid (Current Year) (1767.29) (0.07)(Previous year) (1654.18) (149.34) -
Actuarial loss/(gain) on obligation (Current Year) (104.12) (485.62)(Previous year) 120.29 120.31 -
Defined Benefit obligation at year end (Current Year) 5929.45 2829.33 627.37 (Previous year) 7185.97 3021.42 667.65
I. Reconciliation of opening and closing balances of Defined Benefit obligation. ( . in lakhs)
9 4 2020-21
Salary escalation by taking into account inflation, seniority, promotion and other factors. Attrition rate by reference topast experience and expected future experience and includes all types of withdrawals other than death but includingthose due to disability. Discount rate has been determined by reference to market yields on the Balance Sheet date onGovt. Bonds of Term consistent with estimated term of the obligations.As per the enterprise's accounting policy actuarial gains and losses are recognized immediately during the same yearitself.The fact that Provident Fund element is also to be included while computing relevant salary for encashment of leave hasbeen taken into account.
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) 198.93 100.92 -(Previous year) 214.98 85.32 -
Interest Cost (Current Year) 415.96 199.20 -(Previous year) 459.56 201.41 -
Expected return on plan assets (Current Year) (0.55) - -(Previous year) (0.53) - -
Actuarial (gain)/loss (Current Year) (103.82) (485.62) -(Previous year) 1203.16 120.31 -
Expenses recognized in the statement of P&L a/c (Current Year) 510.51 (185.50) (40.28)(Previous year) 1664.44 407.05 97.26
V. Investment Details (Percentage invested)Description Gratuity as on 31.03.2021 Gratuity as on 31.03.2020GoI Securities - -Others (T.D.R.s) - -Total : - -
VI. Principal Actuarial AssumptionsGratuity (Funded)(%) Leave Encashment (Unfunded)(%)
31-03-2021 31.03.2020 31-03-2021 31.03.2020Discount Rate 6.91 6.60 6.91 6.60Salary escalation rate 6.50 7.00 6.50 7.00Attrition rate 1.00 1.00 1.00 1.00Expected rate of return on plan assets 7.90 7.90 - -
2020-21
9 5
The above information is certified by the Actuary.
( in lakhs)2020-21 2019-20
Employer's Contribution to Provident Fund 858.26 799.22The Company's Provident Fund is exempted under Section 17 of Employees' Provident Fund Act, 1952. The conditionsfor grant of exemption stipulate the employer shall make good deficiency, if any, in the interest rate declared by theTrust vis-à-vis statutory rate. The Guidance issued by the Accounting Standard Board (ASB) on implementing AS-15.Employee Benefits (revised 2005) states that Provident Funds set up by employers, which requires interest shortfall tobe met by the Employer needs to be treated as Defined Benefit Plan. In regard to any future obligation arising due tointerest shortfall (i.e., Government interest to be paid on Provident Fund Scheme exceeds rate of interest earned onInvestments) pending the issuance of guidance note from the Actuarial Society of India, the Company's Actuary hasexpressed his inability to reliably measure the same.
9 6 2020-21
SEGMENT REPORT FOR THE YEAR 2020-21The company operates in Shipbuilding, Ship repair and Sub-marine Retrofit business segments. Information in respect of thesaid 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 Total
building repairsSegment Income:Sales 21268.98 17419.76 572.99 - 39261.73Taxes collected 5802.20 2456.73 103.10 - 8362.03Other operating income (scrap sales) 64.36 106.60 - - 170.96
27135.53 19983.09 676.09 - 47794.72Other Income 417.82 0.00 0.00 587.39 1005.20Total Income 27553.35 19983.09 676.09 587.39 48799.92Segment Expenditure:Materials (net of transfers) 13242.42 3654.08 - - 16896.49Direct Expenses 7061.61 6878.72 124.07 - 14064.40Direct Labour 3141.59 312.89 42.12 - 3496.60GST 5908.01 2456.73 103.10 - 8467.85Total Segment expenditure 29353.63 13302.42 269.29 - 42925.34Segment Result (1800.28) 6680.67 406.80 587.39 5874.57Overheads 5755.46 1706.64 479.45 4633.47 12575.02Provisions and Prior period Adjustments (739.29) 373.30 0.00 (24.12) (390.11)Extraordinary & Exceptional items - - - 2180.72 2180.72Net Segment Result (6816.45) 4600.73 (72.65) (6202.68) (8491.05)Taxes - - - - -Deferred Tax - Net - - - 7,090.48 7,090.48Total Result (6816.45) 4600.73 (72.65) 887.80 (1400.57)Other informationSegment Assets 63066.66 31241.19 5429.42 34334.24 134071.50Accumulated Losses (119624.84) (119624.84)Segment Liabilities 78139.64 12611.06 1.05 162944.60 253696.35Capital Expenditure - - - 1353.74 1353.74Depreciation 359.48 57.72 15.15 - 432.35Non-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.
2020-21
9 7
2020-21 2019-204 Information in respect of related parties in terms of AS 18,
issued by the Institute of Chartered Accountants of India are:a) Related parties:Key Management Personnel:i) RAdm L.V. Sarat Babu, IN (Retd), Chairman & Managing
Director (Upto 31 Aug 2020).ii) Cmde Hemant Khatri, IN (Retd), Chairman & Managing 188.18 114.93
Director (From 01 Sep 2020).iii) Cdr J.P.Gupta, IN (Retd), Director (Corporate Planning & Personnel).iv) Shri S.V.Rambabu, Director (Finance & Commercial).v) Cmde Kunjumon E Mathew (Retd.), Director (Shipbuilding).b) Details of transactions carried out with the above stated related parties:Remuneration paid during the year( In lakhs)
5 a) Net profit/(Loss) as per profit and loss account ( In lakhs) (1401) 1303b) Weighted average number of equity shares used as 3019922 3019922
Denominator for calculating EPSc) Earnings per share: Profit/(Loss) - Basic ( ) (46) 43
6 As per technical evaluation, there is no impairment in the carryingcost of cash generating units of the company in terms of - -Accounting Standard (AS-28), issued by the Institute ofChartered Accountants of India.
7 The estimated cost of completion of vessels under constructionas at 31 Mar 2021 has been revised to 171458 lakhsfrom 189375 lakhs as at 31 Mar 2020. 171458 189375
8. (a) Materials Consumed
2020-21 2019-20Description Unit Qty Rs Lakhs Qty Rs.Lakhs M.T 1649.93 7940.83 3461.28
Steel Meters 2,289.00 486.51No 189.00
Pipes Meters 809.00 21.81 6787.52 94.41Paints Litres 12216.00 59.26 43769.90 135.73Pipe Fittings Nos. 412.00 95.49 11740.00 246.41Ship Mach. &Equipt. 10778.18 9330.22Ship Repair Materials 4024.72 1524.63Retrofit Materials - 1208.24Others 1430.52 3220.25Total 16896.49 19221.16
9 8 2020-21
(b) Break up of Materials Consumed: In lakhs 2020-21 2019-20
i) Value of all Imported Materials including 7020.56 12100.24components and spare parts consumed during the year.ii) Value of all Indigenous Materials including components 9875.93 7144.41and spare parts consumed during the year.iii) Percentage of item (i) to total consumption. 41.55% 62.88%iv) Percentage of item (ii) to total consumption. 58.45% 37.12%
(c) Expenditure and Earnings in Foreign Currency: In lakhs
2020-21 2019-201.1 i) Royalty, Know-how and Professional Consultancy fees - -
ii) Travelling Expenses - -iii) Others 3280.28 6199.00
1.2 CIF value of imported materials, components & 7020.56 12120.00 spare parts and capital goods.
2 Earnings in Foreign Currency from Shipbuilding activity - 39.08Earnings in Foreign Currency from Ship repair activity 43.13 -
(d) Details of Remuneration to Chairman & Managing Director and other whole-time Directors: ( in lakhs)
S.No Particulars 2020-21i. RAdm L.V. Sarat Babu, IN (Retd), Chairman & Managing Director(Upto 31 Aug 2020) 23.76ii. Cmde Hemant Khatri, IN (Retd), Chairman & Managing Director(From 01 Sept 2020) 46.59iii. Cdr. J.P.Gupta, IN (Retd), Director (Corporate Planning & Personnel) 41.42iv. Shri. S.V.Rambabu, Director (Finance & Commercial) 38.00v. Cmde Kunjumon E Mathew (Retd.) , Director (Shipbuilding) 38.41
Total 188.18
2020-21
9 9
9. As per AS-29 relating to Provisions - the movement of provisions in the books of account is as follows:In lakhs
Provision for Gratuity 7179 510 1767 5922(Previous Year) 6966 1664 1451 7179Provision for Leave Salary 3689 263 496 3456(Previous Year) 3337 504 152 3689Provision for Liquidated Damages 5124 50 912 4262(Previous Year) 4799 325 - 5124Provision for Future Losses 1390 26 766 650(Previous Year) 2079 1390 2079 1390Provision for Guarantee Repairs 609 100 168 541(Previous Year) 442 196 29 609Provision for Doubtful Debts / Reductions in SR bills 1647 400 421 1626(Previous Year) 917 975 245 1647Provision for Doubtful Advances 127 0 0 127(Previous Year) 127 0 0 127
Sl.No. Particulars Area Lease Year of Amount(in Acres) period Expiry (Rs. Lakhs) Remarks
A. Shipbuilding yard 55.133 99 2039 0.52B. Wet Basin 11.823 99 2065 11.90C. Drydock 15.290 99 2065 30.78D. Shipbuilding yard ext. 16.000 99 2039 16.10E. Water front structure 2.250 30 2044 4.53F. Water front structure 0.090 30 2044 0.43G. Shipbuilding yard extn. 12.600 30 2044 51.02H. Steel stock yard and hull shop 3.238 69 2044 13.42I. Dolphin jetty 0.387 83 2065 1.28J. 132/11 kv substation 0.476 52 2040 2.31 Requested
for Extension.K. Housing Estate 1 132.12 99 2040 0.10L. Housing Estate 2 7.083 65 2040 0.01M. Addl. Housing colony 2.697 60 2036 15.43 Requested for
Extension.N. Commercial complex 0.165 65 2040 0.17
Total 259.352
10. Particulars of leasehold lands from Visakhapatnam Port Trust.
Nature of Provision Opening Provision Utilization/ ClosingBalance made during Reversal Balance the year during theyear
100 2020-21
11a (i) GoI sanctioned an amount of Rs 457.36 Cr in Dec 2011 for "Refurbishment and Replacement of Machineryand Infrastructure (RRMI) at HSL. As per the sanction, HSL would submit utilization certificate within oneyear and in case of non-utilization of the sanctioned amount within one year, interest earned on the unutilizedfunds would be credited to the Govt. Accordingly, interest earned within one year of Rs 42.18 Cr wasaccounted as 'other income' in the years 2011-12 & 2012-13. However, since Govt. Audit had taken adifferent view on the accounts for FY 2012-13 that the said interest of Rs 42.18 Cr was to be shown as aliability of HSL, the company had taken up with MoD for clarification / approval for retention of the saidinterest. View said position, no provision was made towards the said interest ofRs 42.18 Cr.
(ii) No provision is also made towards notional interest of Rs. 213.95 Cr on RRMI funds utilized for shipconstruction & repair works and for payment of retirement benefits on replenishment basis, since as per thesanction letter interest earned will be credited to the Government and accordingly actual interest earnedonly has been included in the above said FFR proposal.
(iii) Further to the above, the company submitted a Financial Restructuring Proposal in which the amountsspent from RRMI funds towards other purposes has been included in the said proposal and the same isunder active consideration of GoI.
11b The Deferred Tax (DTA) of Rs.70.90 Cr has been recognized in the books of accounts as on 31 Mar 2021on the following basis:
(i) As per Income Tax Act, an amount of unabsorbed depreciation available for setoff is Rs.41.82 Cr as on 31Mar 2021.
(ii) In addition to the above with respect of items pertaining to statutory payments covered under section 43B ofIncome Tax Act and provisions of contingent nature the total available amount eligible for recognition ofDeferred Tax Assets works out to Rs.109 Cr and 73 Cr totalling to Rs. 182 Crores.
(iii) The company accordingly recognized Deferred Tax Asset for an amount of Rs. 70.90 Cr in books as on 31Mar 2021 on unabsorbed depreciation and items covered under section 43B and provisions of contingentnature.
(iv) The net Deferred Tax Asset has been taken into books after considering virtual certainty of earning futureprofits on the basis of convincing evidence that sufficient future taxable income would be available againstwhich Deferred Tax Asset can be recognised as per para 17 of the AS-22- Accounting for Taxes on Income.
(v) The factors that evidence virtual certainty are the nomination order of 05 Nos of Fleet Support Ships andexisting orders on hand.
11c (i) HSL placed an order on M/s Anupam Industries Limited (AIL), Anand, Gujarat in the year 2009 for supply,installation and commissioning of 70T ELL crane at a total cost of Rs. 18.33 Cr. During the course of timestage payments were made to the tune of Rs.17.60 Cr. (Gross). Apart from the inordinate delay in thecompletion of installation, M/s. Anupam abandoned the project despite continuous reminders.
(ii) In order to complete the installation, the balance works on the crane were outsourced to another firm M/sGreen Field Corporation, Visakhapatnam at the risk and cost of AIL. However, an unfortunate freakishaccident took place on 01 Aug 2020 during load-test-trials in the yard resulting in the collapsing of the 70Ton LL Crane leading to total damage of the crane and the death of 10 members who were working on site.
(iii) Accordingly the Gross amount (including recoveries in respect of invocation of Bank Guarantee, LD etc.,) ofRs. 17.60 Cr and the ex-gratia of Rs. 5 Cr paid to the families of deceased members (10 × 50 Lakhs perdeceased member) and Rs. 5 lakhs incurred towards other miscellaneous expenses in this connectionwhich works out to total ofRs. 22.65 Crs has been charged as exceptional item to the P&L at Note-17.
(iv) Arbitration proceedings have been initiated against Anupam Crane Industries for recovery of the stagepayments released, compensation paid to the deceased members and other incidental expenses.
12 The proposal for Financial Restructuring to make the Networthof the Company positive is under activeconsideration of GoI.
2020-21
101
13 The information in respect of vessels under construction as per AS-7 has not been disclosed in line withexemption accorded vide Ministry of Corporate Affairs Notification dated 04 Sep 2015.
14 HSL procured assets worth Rs 39.73 Cr under Infra Contract of INS Sindhukeerthi which is shown asliability to Navy in the books. The said amount would be amortized against future submarine refit contractsas per the provisions of the Sindhukeerthi contract.
15 Estimated amount of contracts remaining to be executed on Capital Account as on 31 Mar 2021 is Rs.14.16 Cr.
16 GoI sanctioned a loan of Rs. 169 Cr for clearing legacy liabilities. The said loan carries an Interest rate of10% per annum and a period of 10 years and with a moratorium of 2 years for payment of interest andprincipal. A proposal has been submitted to the Ministry to consider the rate of Interest at 4% p.a.
17 Consequent to change in accounting policy w.r.t Machinery & Equipment relating to closed out projects,there has been an impact of reduction in profit by Rs. 4.20 lakhs.
18 Balances of Debtors / Creditors are subject to confirmation / reconciliation.19 An amount of Rs. 25.78 lakhs has been incurred towards various CSR activities in 2020-21.20 Previous year's figures have been regrouped / rearranged wherever necessary.
For and on behalf of the Board of Directors In terms of our report of even date attachedFor GR Kumar & Co LLP.Sd/- Sd/- Chartered AccountantsS V RAMBABU Cmde Hemant Khatri, IN (Retd) [Firm Reg. No. 004941S ]Director (Finance & Commercial) Chairman & Managing Director& Chief Financial Officer
Sd/- Sd/-INAITULA BAIG CA SIVA SAI HARI BHASKAR NETICompany Secretary (Designated Partner)Membership No. 204962Place : Visakhapatnam UDIN : 21204962AAAABW6249Date : 28/07/2021
102 2020-21
CASH FLOW STATEMENT FOR THE YEAR ENDED 31-MARCH-2021 in lakhs
Particulars Year ended Year ended31-March-2021 31-March-2020
A. Cash flow from operating activities:Net Profit/(loss) (1400.57) 1,303.18Extra-ordinary Items & Exceptional Items 2810.72 1,697.66Prior period Expenditure / (Income) net 15.40 (36.43)FE variation Expenditure / (Income) (54.08) 71.02Deferred Tax (Net) 2568.16 -Net Profit/(loss) before Extraordinary,Prior period items & FE variation 3309.63 3035.43
Adjustments for:Depreciation 1246.75 1,248.05Interest & Finance charges 546.05 486.91Interest received (299.52) 988.84Loss/(profit) on sale of fixed assets (8.90) -
Operating Cash flow before working capital changes,Extraordinary & Prior Period items 4794.01 5,759.23Exceptional & Extra ordinary items 2180.72 1,697.66Prior Period items: Net Receipt 15.40 (36.43)FE Variation (54.08) 71.02Deferred Tax (Net) 2568.16
Operating Cashflow before working capital changes & afterExtraordinary & Exceptional items, Prior Period items & Dedferred Tax 83.81 4,026.98Adjustments for working capital changes:
Inventories 5896.60 (5,954.75)Trade and other receivables 6909.41 (13,022.77)Trade and other payables (2,721.10) 12,732.97
Cash generated from operation (A) 10,168.72 (2,217.57)B. Cashflow from Investing acitivities:
Purchase of fixed assets (923.53) (1,235.88)Capital Work-in-progress 1,521.37 781.96Sale of Fixed Assets 10.41 -Interest received 299.52 (988.84)
Net Cash from investing operation (B) 907.77 (1,442.76)C. Cashflow from financing activities:
Proceeds from Share Capital -Proceeds from Borrowings from GOI & Banks (1,522.66) (9,358.25)Interest paid (546.05) (486.91)
Net Cash from financing operation (C) (2,068.71) (9,845.17)D. Net Increase in Cash & Cash
Equivalent (A)+(B)+(C) 9,007.78 (13505.50)Cash and cash equivalent at the beginning of the year 13,068.20 26,573.70Cash and cash equivalent at the end of the year 22,075.98 13,068.20
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 Cmde Hemant Khatri, IN (Retd) [Firm Reg. No. 004941S ]Director (Finance & Commercial) Chairman & Managing Director& Chief Financial Officer
Sd/- Sd/-INAITULA BAIG CA SIVA SAI HARI BHASKAR NETICompany Secretary (Designated Partner)Membership No. 204962Place : Visakhapatnam UDIN : 21204962AAAABW6249Date : 28/07/2021
2020-21
103
SCHEDULE OF NET EXPENDITURE ON TOWNSHIP, RESIDENTIAL QUARTERS AND OTHER SOCIAL OVERHEADS FORMINGPART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2021
( `in lakhs)Description 2020-21 2019-20
Details Details Total Details Details TotalEXPENDITURE ON TOWNSHIPAND RESIDENTIAL QUARTERSAdministration & Maintenance:Salaries, Wages & Other Benefits 409.07 442.36Housing Estate Site Rent 18.10 17.46Property Tax on Residential Buildings 0.95 0.95Electricity and Water Charges 157.24 141.31Repairs and Maintenance 192.60 104.63Colony Security 161.77 188.58Miscellaneous Expenditure 0.90 940.63 0.24 895.52Depreciation 5.04 5.06
945.67 900.58Less: Income-Rent 210.59 185.35 Electricity and Water Charges 71.67 282.26 663.41 85.84 271.19 629.39Expenditure on Social Overheads:Schools and Educational Facilities - -On Medical facilities 313.83 286.91On Subsidised Canteen 50.87 33.75On Subsidised lunch 117.27 168.14 120.06 153.81On Subsidised transport :Boats and launches 11.42 11.48On Social & Cultural Activities 0.00 0.40
493.39 452.611156.80 1081.99
Expenditure on Public Relations andPublicity:Salaries 8.85 9.47Publicity 0.35 3.26
9.21 12.73NOTES:
1. Interest on capital outlay on Township and Residential quarters and for providing other Social Amenities (original cost of 573.61 lakhswritten down value 92.78 lakhs as on 31.03.2021) 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 Cmde Hemant Khatri, IN (Retd)
Company Secretary Director (Finance & Commercial) Chairman & Managing Director& Chief Financial Officer
Place : VisakhapatnamDate : 28 / 07 / 2021
104 2020-21
CAPIT
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i, IN ( R
etd)
Comp
any S
ecreta
ryDir
ector
( Fina n
ce & C
omm e
rc ial)
Chair
man &
Mana
g ing D
ir ecto
r& C
hief F
inan ci
al Off ic
erPla
c e: V
i sakh a
patn am
Date
: 28/0
7/20 21
2020-21
105
FINAN
CIAL P
OSITI
ON O
F THE
COMP
ANY
( in cro
res)
2011-1
2201
2-13
2013-1
4201
4-15
2015-1
6201
6-17
2017-1
8201
8-19
2019-2
0202
0-21
BALA
NCE S
HEET:
EQUIT
Y & LIA
BILITIE
SSha
rehold
ers’ fu
ndsSha
re Capit
al 301
.99301
.99301
.99301
.99301
.99301
.99301
.99301
.99301
.99301
.99Res
erves an
d Surplu
s(101
5.99)
(1071.16
)(111
7.37)
(1325.28
)(130
6.27)
(1252.50
)(123
1.51)
(1195.27
)(118
2.24)
(1196.24
)Cap
ital Gran
t 0.0
00.00
0.000.00
0.00200
.00310
.09316
.20312
.63299
.09No
n-curr
ent Lia
bilities
Long te
rm borro
wings
372.21
372.21
372.21
372.21
372.21
372.21
372.21
541.21
541.21
541.21
Other lo
ng trm
liabilitie
s 9.8
311.9
115.7
290.4
573.0
0508
.19407
.73310
.71303
.03302
.47Lon
g term p
rovision
s 179
.09124
.30119
.7597.3
693.4
387.4
584.5
671.8
184.8
968.0
9Cu
rrent L
iabiliti
esSho
rt term b
arrowin
gs 104
.82103
.6096.0
888.4
3107
.45129
.39194
.9191.7
01.69
-Tra
de paya
bles 166
.85192
.77202
.43199
.08191
.18196
.78190
.60267
.44273
.69226
.11Oth
er curre
nt l iabi
lities
978.62
890.60
857.29
1000.73
1060.86
225.61
316.74
537.97
663.06
715.56
Short te
rm provi
sions
182.29
190.97
157.02
180.49
184.42
149.61
126.27
106.62
97.21
82.44
Total
1279.7
1111
7.19
1005.1
2100
5.46
1078.2
8918
.73107
3.59
1350.3
8139
7.16
1340.7
2AS
SETS
Non-c
urrent
asset
s:Fixe
d assets
- Tangib
le75.3
875.9
673.8
466.9
260.5
853.8
3130
.77127
.17127
.06123
.81- Int
angible
0.000.00
0.040.13
0.090.29
0.027
0.010.00
0.00- Ca
pital wo
rk in pro
gress
14.44
11.56
6.973.21
2.511.13
30.27
34.34
26.52
11.3Lon
g term l
oans an
d advan
ces2.95
3.814.18
64.38
69.34
74.08
75.02
81.86
77.13
135.92
Other n
on-curr
ent ass
ets109
.7282.2
274.1
358.0
939.9
839.9
839.9
826.0
150.5
317.4
2Cu
rrent A
ssets
Inventor
ies253
.19135
.69136
.09142
.21299
.3983.9
877.4
654.3
3113
.8754.9
1Tra
de rece
ivables
128.78
230.16
178.88
132.18
227.02
117.71
176.17
276.44
393.51
329.13
Cash &
cash eq
uivalent
s519
.59471
.84404
.07398
.16202
.49230
.76186
.19265
.73130
.68220
.76Sho
rt term l
oans an
d advan
ces76.0
546.6
827.7
589.7
338.8
362.2
358.1
976.1
6126
.42131
.75Oth
er curre
nt asse
ts99.6
159.2
799.1
750.4
5138
.05254
.74299
.21408
.33351
.44315
.72Tot
al127
9.71
1117.1
9100
5.12
1005.4
6107
8.28
918.73
1073.2
9135
0.38
1397.1
6134
0.72
Net Wo
rth(71
4.00)
(769.1
7)(81
5.38)
(1023.
29)(10
04.28)
(750.5
1)(61
9.43)
(577.0
8)(56
7.62)
(595.1
6)
*Net W
orth = P
aid up C
apital+R
eserves
and Su
rplus+C
apital g
rant
106 2020-21
( in cro
res)
FINAN
CIAL P
ERFO
RMAN
CE O
F THE
COMP
ANY
2011-1
2201
2-13
2013-1
4201
4-15
2015-1
6201
6-17
2017-1
8201
8-19
2019-2
0202
0-21
PROF
IT AND
LOSS
ACCO
UNT:
Incom
e:Ship
building
254.76
196.08
239.14
128.67
366.36
477.43
307.33
150.74
273.06
271.36
Ship rep
airs193
.51152
.9768.7
062.8
4142
.58139
.92146
.26126
.9997.4
4199
.83Ret
rofit115
.77134
.79145
.56102
.6584.3
611.7
0191
.19317
.18203
.046.76
Work-in
-Progre
ss0.00
0.000.00
0.000.00
0.000.00
0.000.00
0.00Oth
er Incom
e40.3
078.6
665.6
728.8
563.7
821.0
46.89
10.63
21.49
10.05
Total
604.34
562.50
519.07
323.01
657.08
650.09
651.67
605.54
595.03
488.00
Expend
iture:
Materia
ls255
.85238
.39186
.05133
.68245
.96366
.3197
.94152
.65192
.44168
.97Dire
ct Expe
nses
99.07
76.91
99.55
106.1
140.23
62.23
126.22
169.14
156.44
140.64
Pay & B
enefits
199.90
183.06
187.90
160.47
141.99
137.22
129.49
113.95
130.88
1164.54
Taxes a
nd Dutie
s29.6
620.8
122.9
512.6
58.52
10.96
61.24
59.06
78.57
84.67
Other E
xpense
s28.4
726.4
227.4
031.5
837.7
034.5
740.3
734.2
735.7
434.4
0Pro
visions a
nd Loss
es56.3
433.0
819.1
326.8
846.1
8(40.
43)0.62
(17.68)
(37.93)
(4.06)
Prior pe
riod Adj
ustments
5.218.41
8.130.25
(3.48)
(0.57)
(1.39)
(2.30)
(0.36)
0.15Ext
raordin
ary item
s0.00
7.590.29
38.25
0.004.76
55.70
42.48
16.98
28.81
Transfe
rs(3.9
7)(2.6
6)(2.9
0)(3.0
6)0.00
0.000.00
0.000.00
0.00Tot
al670
.53592
.01548
.50506
.80617
.10575
.04610
.19551
.57572
.76563
.12Pro
fit / (Lo
ss) bef
ore inte
rest,
(66.19)
(29.51)
(29.43)
(183.79)
39.98
75.05
41.48
53.97
22.27
(75.12)
Grant fr
om Go
I0.00
0.000.00
0.000.00
0.000.00
0.000.00
0.00Dep
reciatio
n7.97
7.897.53
6.806.98
6.284.76
4.754.37
4.32Inte
rest11.8
217.7
79.25
12.25
14.00
15.00
15.73
12.99
4.875.46
Profit /
(Loss)
before
tax(85.
98)(55.
17)(46.
21)(202
.84)19.0
053.7
720.9
936.2
413.0
3(84.
90)Inco
me Tax
0.000.00
0.000.00
0.000.83
1.350.00
0.000.00
MAT cr
edit ene
titleme
nt0.00
0.000.00
0.000.00
(0.83)
(1.35)
0.000.00
0.00Def
erred Ta
x (asse
t) / liabi
lity0.00
0.000.00
0.000.00
0.000.00
0.000.00
(70.90)
Net Pro
fit / (Lo
ss)(85.
98)(55.
17)(46.
21)(202
.84)19.0
053.7
720.9
936.2
413.0
3(14.
00)Pro
fit & Los
s Appro
priation
0.000.00
0.005.07
0.000.00
0.000.00
0.000.00
Cumu
lative
Profit /
(Loss)
(1016.
08)(10
71.25)
(1117.
46)(13
25.37)
(1306.
37)(12
52.60)
(1231.
61)(11
95.37)
(1182.
34)(11
96.34)
2020-21
107
HINDU
STAN
SHIPY
ARD L
IMITE
D :: V
ISAKH
APAT
NAM
SHIPS
BUILT
S.NO.
Name of
the Sh
ip / Nam
e of the
Owner
Dead W
eight
Date of
Laying
Date of
Date of
Tonnes
Keel
Launch
ing/Floa
tingDel
ivery
1.“Ja
lausha”
The Sci
ndia Ste
am Na
vigation
Co. Ltd
.,8.17
922-0
6-1946
14-03-19
4826-1
0-1948
2.“Ja
laprabh
a” The S
cindia S
team N
avigatio
n Co. L
td.,8.17
922-0
8-1946
20-11-19
4807-0
4-1949
3.“Ku
tubtari”
(Passe
nger Fe
rry) Th
e Scind
ia Stea
m Navig
ation C
o Ltd.,
-23-0
5-1947
18-12-19
4819-0
5-1949
4.“Ja
lapraka
sh” The
Scindia
Steam
Naviga
tion Co
. Ltd.,
8.138
27-05-19
4808-0
8-1949
20-12-19
495.
“Jalapa
nkhi” Th
e Scind
ia Steam
Naviga
tion Co
. Ltd8.15
007-1
0-1949
06-12-19
4904-0
4-1950
6.“Ja
lapadm
a” The S
cindia S
team Na
vigation
Co. Ltd
.,8.13
726-0
1-1950
14-09-19
5018-0
1-1951
7.“Ja
lapalaka
” The S
cindia S
team N
avigatio
n Co. L
td.,8.14
126-0
1-1950
27-12-19
5003-0
4-1951
8.“Bh
aratmit
ra” The B
harat L
ine Lim
ited8.13
428-0
9-1950
26-03-19
5102-0
7-1951
9.“Jag
rani” Th
e Grea
t Easter
n shippi
ng Com
pany Li
mited
8.125
09-05-19
5115-1
2-1951
09-06-19
5210.
“Jalapr
atap” Th
e Scind
ia Steam
Naviga
tion Co
. Ltd.,
8.125
09-05-19
5127-0
2-1952
09.08.19
5211.
“Jalapu
shpa” T
he Scind
ia Stea
m Navig
ation C
o. Ltd.,
8.087
26-12-19
5109-0
7-1952
17-10-19
5212.
“Bhara
tratna” T
he Bhar
at Line
Limited
8.100
21-07-19
5226-0
8-1953
15-07-19
5413.
“Jalapu
tra” The
Scindia
Steam
Naviga
tion Co
. Ltd.,
8.114
21-07-19
5209-1
1-1953
19-08-19
5414.
“Jalavi
har” Th
e Scind
ia Stea
m Navig
ation C
o., Ltd.,
7.248
01-12-19
5316-0
8-1954
22-06-19
5515.
“Jalavi
jaya” Th
e Scind
ia Stea
m Navig
ation C
o., Ltd.,
7.311
30-09-19
5326-0
3-1955
29-12-19
5516.
“Vidyut”
Land C
ustoms
Departm
ent(Mo
tor Laun
ch)19-1
0-1953
18-08-19
5418-0
3-1958
17.“Ja
lavishn
u” The S
cindia S
team Na
vigation
Co. Ltd
7.322
16-12-19
5302-1
1-1955
23-05-19
5618.
“State o
f Kutch”
The Ea
stern S
hipping
Corpor
ation Li
mited
8.253
02-09-19
5429-0
3-1956
25-11-19
5619.
“Adyar
” Madra
s Port Tr
ust(Ko
rt Nozz
le Tug)
27-09-19
5431-1
2-1955
25-09-19
5720.
“Andam
ans” Mi
nistry o
f Home
Affairs
2.470(P
asseng
er cum
Cargo V
essel)
10-08-19
5525-0
7-1956
04-12-19
5721.
“State o
f Orissa
” The E
astern S
hipping
Corpor
ation Lt
d.,8.16
008-1
2-1955
16-02-19
5731-1
2-1957
22.“Ja
lavikra
m” The S
cindia S
team N
avigatio
n Co., L
td7.31
216-0
4-1956
29-07-19
5726-0
3-1958
23.“Ja
laveera
” The S
cindia S
team N
avigatio
n Co., L
td.,7.31
204-0
8-1956
22-11-19
5726-0
7-1957
108 2020-21
S.N
O.Nam
e of the
Ship /
Name of
the Ow
nerDea
d Weigh
tDat
e of Lay
ingDat
e ofDat
e ofTon
nesKee
lLau
nching/
Floating
Deliver
y24.
“Jagmitr
a” The G
reat Ea
stern S
hipping
Compan
y Ltd.,
6.391
31-08-19
5705-0
7-1958
10-06-19
5925.
“Dhruva
k” Indian
Navy
(Moorin
g Vesse
l)27-0
1-1956
16-07-19
5816-1
1-1959
26.“Ind
ian Indu
stry” Th
e India
Steam
ship Co
mpany
Ltd.,
6.419
07-12-19
5712-1
2-1958
27-10-19
5927.
“Jayalak
shmi” N
ew Dho
lera Ste
amship
s Limite
d5,40
522-0
8-1957
22-04-19
5927-0
1-1960
28.“Sta
te of Ut
tar Prad
esh” Th
e Easte
rn Shipp
ing Cor
poratio
n Ltd.,
9,632
03-10-19
5931-1
2-1959
16-01-19
6129.
“R.S.V. H
aldia” C
alcutta P
ort Com
mission
ers(Po
rt Surve
y Vesse
l)16-1
1-1960
11-06-19
6025-0
3-1961
30.“Sta
te of Ra
jasthan
” The E
astern S
hipping
Corpor
ation Lt
d.,9,64
422-0
1-1959
29-04-19
6018-0
5-1961
31.“Vis
hvanidh
i” The W
estern S
hipping
Corpor
ation of
India L
td.,9,66
611-0
5-1959
06-09-19
6002-1
0-1961
32.“Sta
te of Pu
njab” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
12,557
02-12-19
5916-0
4-1961
06-04-19
6233.
“Vishva
Shanti
” The S
hipping
Corpor
ation of
India L
td.,12,6
0629-0
9-1960
25-01-19
6114-0
9-1962
34.“Vis
hva Pre
m” The
Shippi
ng Corp
oration
of India
Ltd.,
12,565
27-08-19
6020-1
2-1961
28-01-19
6335.
“Vishva
Maya”
The Sh
ipping C
orpora
tion of I
ndia Ltd
.,12,5
7722-0
9-1960
06-04-19
6230-0
4-1963
36.“Vis
hva Ma
ngal” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
12,608
05-05-19
6117-0
8-1962
23-09-19
6337.
“Jala K
ala” Th
e Scind
ia Stea
m Navig
ation C
o., Ltd.,
12,913
12-10-19
6129-0
3-1963
12-11-19
6438.
“Darsha
k” Indian
Navy
(Survey
Vessel)
14-10-19
5702-1
1-1959
28-12-19
6439.
“State o
f Madhy
a Prad
esh” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
12,873
08-01-19
6215-1
0-1963
04-05-19
6540.
“Rohini
” Hindu
stan Sh
ipyard L
imited
(Launch
)20-0
8-1965
41.“Jal
a Kend
ra” The
Scindia
Stea N
avigatio
n Co., L
td.,12,9
4724-0
5-1962
16-04-19
6429-0
1-1966
42.“Sta
te of W
est Ben
gal” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
12,915
06-09-19
6205-1
2-1964
31-03-19
6643.
“Jalaka
nta” Th
e Scind
ia Steam
Naviga
tion Co
., Ltd.,
12,912
26-04-19
6301-0
7-1965
02-08-19
6644.
“State o
f Mysor
e” The S
hipping
Corpor
ation of
India L
td.,12,9
2313-1
1-1963
09-12-19
6511-1
0-1966
45.“Vis
hva Tej
” The S
hipping
Corpor
ation of
India L
td.,12,8
8604-0
5-1964
01-10-19
6602-1
0-1967
46.“Vis
hva Tirt
h” The S
hipping
Corpor
ation of
India L
td.,12,8
8608-0
1-1965
28-12-19
6603-1
2-1967
47.“Vis
hva Se
va” The
Shippi
ng Corp
oration
of India
Ltd.,
12,959
23-08-19
6526-1
96702-0
3-1968
48.“Vis
hva Sid
dhi” The
Shippi
ng Corp
oration
of India
Ltd.,
12,972
24-12-19
6515-1
1-1967
12-09-19
68
2020-21
109
S.NO.
Name of
the Sh
ip / Nam
e of the
Owner
Dead W
eight
Date of
Laying
Date of
Date of
Tonnes
Keel
Launch
ing/Floa
tingDel
ivery
49.“Vis
hva Bh
akti” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
12,937
23-01-19
6815-0
4-1968
29-01-19
6950.
“Vishva
Shoba
” The S
hipping
Corpor
ation of
India L
td.,12,9
3113-0
2-1967
24-09-19
6811-0
5-1969
51.“Vis
hva Sh
akti” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
12,900
19-05-19
6720-0
3-1969
17-12-19
6952.
“Vishva
Dharm
a” The S
hipping
Corpor
ation of
India L
td.,12,8
5222-1
1-1967
08-10-19
6920-0
4-1970
53.“Vis
hva Vik
ram” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
12,881
06-06-19
6809-0
2-1970
12-09-19
7054.
“Shanti
” The V
isakhap
atnam P
ort Trust
Launch
12-03-19
7014-1
2-1970
31-12-19
7055.
“Vishva
Sarsh
an” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
12,883
16-12-19
6820-0
7-1970
02-07-19
7156.
“Walcha
nd” Hin
dustan
Shipya
rd Limit
ed(La
nding C
raft)01-0
5-1971
14-07-19
7130-0
9-1971
57.“Vis
hva Na
yak” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
12,881
26-06-19
6930-1
1-1970
22-10-19
7158.
“T.S. Ra
jendra” T
he Direc
torate G
eneral o
f Shippi
ng(Tra
ining Sh
ip)20-1
0-1969
25-04-19
7127-0
3-1972
59.“Bo
mbay D
uck-II” T
he Visak
hapatn
am Po
rt Trust
(Dredge
r)27-0
8-1971
12-07-19
7211-0
2-1973
60.“Vis
hva Ka
runa” T
he Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
13,967
26-08-19
7002-1
1-1071
02-03-19
7361.
“Vishva
Yash” T
he Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
13,986
18-03-19
7017-0
3-1972
18-05-19
7362.
“Vishva
Mamta
” The S
hipping
Corpor
ation of
India L
td.,13,9
7123-1
2-1970
23-08-19
7216-1
0-1973
63.“Vis
hva Ba
ndan” T
he Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
13,765
30-06-19
7106-0
3-1973
04-03-19
7464.
Vishva M
adhuri”
The Sh
ipping C
orpora
tion of I
ndia Ltd
.,13,7
6225-1
1-1971
17-08-19
7316-0
8-1974
65.“Ind
ian End
urance
” India S
team Sh
ip Com
pany Lt
d.,14,1
9729-0
3-1972
26-01-19
7416-0
3-1975
66.“Ja
g Doot”
The G
reat Ea
stern S
hipping
Compan
y Ltd.,
21,298
11-09-19
7222-0
6-1974
23-03-19
7567.
“Jagat
Priya” D
empo S
temship
s Ltd.,
21,393
30-08-19
7303-1
0-1974
30-11-19
7568.
“Sagar
ika-1” O
il & Nat
ural Ga
s Com
mission
(Supply
cum Cre
w Vess
el)05-0
4-1974
07-08-19
7528-0
2-1976
69.“Ja
g Dhir”
The Gre
at Easte
rn Shipp
ing Com
pany Lt
d.,21,3
8328-0
1-1974
14-03-19
7520-0
3-1976
70.“Sa
garika-
2” Oil &
Natura
l Gas C
ommis
sion(Su
pply cum
Crew V
essel)
18-12-19
7430-1
1-1975
30-03-19
7671.
“Jag Dh
arma” T
he Grea
t Easter
n Shipp
ing Com
pany Lt
d.,21,4
2026-0
6-1974
24-07-19
7506-0
9-1976
72.
“Indian
Explore
r” India
Steam
Ship C
ompan
y Ltd.,
14,089
07-10-19
7417-1
1-1975
30-10-19
7673.
“Jag De
esh” Th
e Grea
t Easter
n Shipp
ing Com
pany Lt
d.,21,4
0616-0
3-1976
30-03-19
7612-0
3-1977
74.“Da
modar
Ganga
” Damo
dar Bu
lk Carrie
rs Ltd.,
21,365
26-07-19
7524-1
0-1976
25-06-19
77
110 2020-21
S.N
O.Nam
e of the
Ship /
Name of
the Ow
nerDea
d Weigh
tDat
e of Lay
ingDat
e ofDat
e ofTon
nesKee
lLau
nching/
Floating
Deliver
y75.
“Indian
Grace”
India S
team S
hip Com
pany Lt
d.,21,2
8321-1
1-1975
23-12-19
7629-0
3-1978
76.“Ind
ian Glo
ry” India
n Steam
Ship C
ompan
y Ltd.,
21,344
26-02-19
7604-0
8-1977
27-10-19
7877.
`“Jala G
odavari
” The S
cindia S
team N
avigatio
n Com
pany Lt
d.,20,9
1402-0
7-1976
16-03-19
7816-0
4-1979
78.“Jal
agovind
” The S
cindia S
team Na
vigation
Comp
any Ltd
,20,8
6825-1
0-1976
03-11-19
7805-1
2-1979
79.“Jal
agopal”
The Sci
ndia Ste
am Na
vigation
Comp
any Ltd
.,20,8
5012-0
4-1977
11-07-19
7911-0
9-1980
80.“Jal
agouri”
The Sci
ndia Ste
am Na
vigation
Comp
any Ltd
.,20,8
5425-1
0-1977
01-12-19
7927-0
3-1981
81.“Te
nneti” H
industan
Shipya
rd Ltd.,
(Landin
g Craft)
29-10-19
8006-0
5-1981
29-09-19
8182.
“State o
f Harya
na” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
16,700
19-03-19
7927-0
7-1980
16-06-19
8383.
“Nand R
ati” Ess
ar Bulk
Carrier
Ltd.,
26,710
09-03-19
8130-0
1-1983
16-07-19
8484.
“State o
f Gujara
t” The s
hipping
Corpor
ation of
India L
td.,16,7
8930-0
5-1979
03-06-19
8112-1
2-1984
85.“Sa
mudrik
a-4” OP
SSV Oil
& Natur
al Gas C
ommis
sion1,23
122-0
4-1984
24-11-19
8409-1
2-1985
86.“Sa
mudrik
a-5” OP
SSV Oil
& Natur
al Gas C
ommis
sion1,24
022-0
5-1984
10-03-19
8519-0
3-1986
87.“Lo
k Mahe
swari” B
ulk Car
rier, SD
FC / Mo
ghul Lin
e Ltd.,
26,728
03-10-19
8120-0
8-1983
31-03-19
8688.
“Samu
drika –
6” OPSS
V Oil &
Natura
l Gas C
ommis
sion1,24
012-0
8-1984
29-01-19
8524-0
9-1986
89.“Sta
te of Or
issa” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
16,806
05-12-19
7910-0
1-1982
08-07-19
8690.
“Prabhu
Daya”
Tolani
Shippin
g Corp
oration
of India
Ltd.,
26,713
04-02-19
8325-1
1-1984
02-03-19
8791.
“Samu
drika-7
” OPSSV
Oil & N
atural G
as Com
mission
1,242
12-08-19
8423-0
6-1986
28-05-19
8792.
“Sagar
Bhush
an” (Dr
ill Ship)
Oil & N
atural G
as Com
mission
9,113
12-08-19
8418-0
8-1985
04-11-19
8793.
“Lok R
ajeswar
i” The S
hipping
Corpor
ation of
India L
td.,26,6
3905-0
3-1982
16-07-19
8427-1
0-1988
94.“ M
undesw
ari” – C
.I.W.C
825 (Ba
rge)
1-8-198
727-1
0-1988
03-03-19
8995.
“ Manja
ri” – C.I
.W.C
825 (Ba
rge)
1-8-198
710-1
1-1988
03-03-19
8996.
“ Mahan
adi” – C
.I.W.C
825 (Ba
rge)
1-8-198
727-1
0-1988
03-03-19
8997.
“ Mand
akini” –
C.I.W.C
825 (Ba
rge)
1-8-198
710-1
1-1988
03-03-19
8998.
“ Matla
” – C.I.W
.C825
(Barge
)1-8-
1987
10-01-19
8903-0
3-1989
99.“ Ar
go” – C
.I.W.C
825 (Ba
rge)
1-8-198
707-0
2-1989
03-03-19
89100
.“Lo
k Praka
sh” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
26,790
19-07-19
8424-0
3-1985
12-04-19
89101
.“Lo
k Prem
” The S
hipping
Corpor
ation of
India L
td.,26,7
1430-0
3-1985
29-05-19
8723-0
2-1990
2020-21
111
S.NO.
Name of
the Sh
ip / Nam
e of the
Owner
Dead W
eight
Date of
Laying
Date of
Date of
Tonnes
Keel
Launch
ing/Floa
tingDel
ivery
102.
“INS Sa
vitri” OP
V, Indian
Navy
OPV25-0
6-1988
23-05-19
8920-1
1-1990
103.
“INS Gh
arial” G
RSE / I
ndian N
avyLST
L30-1
1-1989
01-04-19
9102-0
5-1991
104.
“INS Sa
rayu” OP
V, Indian
Navy
OPV25-0
6-1988
16-10-19
89104-1
0-1991
105.
“INS Sh
arada”
Indian
Navy
OPV16-0
6-1989
22-08-19
9016-1
2-1992
106.
“INS Pra
tap” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
26,718
28-08-19
8531-0
7-1988
28-06-19
93107
.“INS
Sujata
” OPV, In
dian Na
vyOPV
16-06-19
8923-1
0-1991
03-11-19
93108
.“Am
bica” HS
D Oiler
Indian N
avy1,00
001-0
9-1993
10-12-19
9423-0
1-1995
109.
“Mahar
ashtra”
The Sh
ipping C
orpora
tion of I
ndia Ltd
.,42,7
50 DWT
(Bulker
)18-0
9-1986
23-09-19
9206-0
1-1996
110.
“Swatan
tra” The
Visakh
apatnam
Port Tr
ust30 T
.B.P Tug
10-09-19
9429-0
3-1997
12-09-19
97111.
“M.V. G
oa” Th
e Shipp
ing Cor
poratio
n of Ind
ia Ltd.,
42,750 D
WT (Bu
lker)
20-11-19
9422-0
3-1996
15-01-19
98112
.M.V
. Swara
j Dweep
– A & N
Adminis
tration
1200 Pa
ssenge
r-cum-
Cargo V
essel
22-03-19
9411-1
2-1996
09-12-19
99113
.“Ma
hatma” –
The Vis
akhapa
tnam Po
rt Trust
50T B.P
. Tug
05-07-19
9822-0
3-1999
17-01-20
00114
.“Sa
rdar Pa
tel” The
Visakh
apatnam
Port Tr
ust50T
B.P. Tu
g05-0
7-1998
22-03-19
9927-0
5-2000
115.
“M.V.Ta
mil Nad
u” The S
hipping
Corpor
ation of
India L
td.,42,7
50 DWT
(Bulker
)13-0
4-1997
21-10-19
9815-0
9-2000
116.
“M.V. R
ANGAT
” – A & N
Adminis
tration
100 Pas
senger
Vessel
30-09-19
9927-1
0-2000
16-10-20
01117
.M.V
. BARAT
ANG” –
A & N A
dminis
tration
100 Pas
senger
Vessel
30-09-19
9927-1
0-2000
17-01-20
02118
.“M.
T KABI
NI” – N
ew Ma
ngalore
Port Tr
ust50T
B.P. Tu
g17-0
8-1999
19-04-20
0103-0
8-2002
119.
“I.N.S G
AJ” - A
TVP H.Q
(Indian
Navy)
25T B.P
Tug18-0
1-2000
31-08-20
0104-1
0-2002
120.
“M.T. T
IRACO
L - II” –
Marmu
gao Po
rt Trust
45T B.P
. Tug
11-10-19
9915-1
1-2001
31-03-20
03121
.“M.
V. CHO
ULDAR
” – A & N
Adminis
tration
100 Pas
senger
Vessel
10-11-19
9905-0
1-2001
10-11-20
03122
.“M.
T. CHA
PORA
- II” – M
armuga
o Port T
rust
45T B.P
. Tug
11-10-19
9925-0
1-2002
24-12-20
03123
.“M.
V. TEAL
” – A & N
Adminis
tration
100 Pas
senger
Vessel
10-11-19
9905-0
1-2001
29-01-20
04124
.“M.
V. Jolly
Buoy”
– A & N
Adminis
tration
100 Pas
senger
Vessel
18.11.19
9923.0
4.2001
20.05.20
04125
.“F.C
Ravi B
” –M/s S
arat Ch
atterjee
& Co.
17.5 Ton
s Floati
ng Cran
e29.0
2.2000
05.09.20
0309.0
5.2004
126.
“M.V. W
andoor
” – A & N
Adminis
tration
100 Pas
senger
Vessel
18.11.19
9923.0
4.2001
15.07.20
04127
.FRP
Launch
– Visak
hapatna
m Port T
rustLau
nch02.0
1.2005
128.
“M.V. H
ut Bay”
– A & N
Adminis
tration
100 Pas
senger
Vessel
08.12.19
9906.1
0.2002
11.02.20
05
112 2020-21
S.N
O.Nam
e of the
Ship /
Name of
the Ow
nerDea
d Weigh
tDat
e of Lay
ingDat
e ofDat
e ofTon
nesKee
lLau
nching/
Floating
Deliver
y129
.“G.H
.D. Sag
ar Durg
a” – Vis
akhapa
tnam Po
rt Trust
500 M3 Dr
edger
30.09.19
9905.0
9.2003
09.02.20
05130
.1st . B
arge fo
r A & N A
dminis
tration
10 x 8 x
2 Mete
rs02.0
2.2005
131.
2nd Barg
e for A &
N Adm
inistrat
ion10 x
8 x 2 M
eters
02.02.20
05132
.3rd Ba
rge for
A & N A
dminis
tration
10 x 8 x
2 Mete
rs02.0
2.2005
133.
4th Barge
for A &
N Adm
inistrat
ion10 x
8 x 2 M
eters
08.02.20
05134
.5th Ba
rge for
A & N A
dminis
tration
10 x 8 x
2 Mete
rs11.0
2.2005
135.
6th Barge
for A &
N Adm
inistrat
ion10 x
8 x 2 M
eters
08.02.20
05136
.“M.
V. Strait
Island”
A & N A
dminis
tration
100 Pas
senger
Vessel
08.12.19
9911.0
1.2003
20.05.20
05137
.“M.
V.Jhans
i Rani fo
r Visakh
apatna
m Port T
rust50 T
B.P.Tu
g03.1
1.2000
17.06.20
0301.0
9.2005
138.
ORV S
agar M
anjusha
, Nation
al Institu
te of Oc
ean Tec
hnology
Buoy Te
nder cu
mRes
earch
vessel
23.12.20
0403.1
1.2005
14.06.20
06139
.M.L
.Radha
Nagar
for A &
N. Adm
in.Util
ity Laun
ch18.0
7.2006
140.
M.L Utt
ava for
A & N A
dmin.
Utility L
aunch
18.07.20
06141
.M.L
.Nimbuta
la for A &
N Adm
in.Util
ity Laun
ch02.1
1.2006
142.
M.L.Nil
ambar
for A &
N Adm
in.Util
ity Laun
ch02.1
1.2006
143.
M.V.Go
od Provi
dence,
for30,0
00 DWT
Trader
M/s. Go
odearth
Maritim
e Limite
d (GML
), Chen
naiseri
es Bulk
carrier
29.07.20
0522.0
1.2007
31.05.20
07144
.M.V
. Good P
rinces,
for GML
, Chenn
ai.30,0
00 DWT
Trader
series
Bulk ca
rrier
18.01.20
0616.0
5.2007
23.01.20
08145
.M.V
.Good P
acific, fo
r GML, C
hennai
30,000 D
WT Tra
derser
ies Bul
k carrie
r02.0
1.2007
03.01.20
0807.0
5.2008
146.
M.V.Ka
varatti,
for UTL
Adminis
tration
700 Pas
senger
s-160 T
Cargo v
essel
21.10.20
0014.0
2.2005
27.06.20
08147
.“M.
V. Bam
booka”
for A &
N Adm
inistrat
ion150
Passen
ger Ves
sel08.1
2.1999
14.06.20
0406.1
1.2008
148.
“M.V. N
orth Pa
ssage f
or A & N
Admin.
150 Pas
senger
Vessel
08.12.19
9914.0
6.2004
06.11.20
08149
.M.V
. Jal Su
dhak, fo
r Visakh
apatna
m Port T
rust
Oil reco
very and
pollutio
ncon
trol ves
sel18.1
0.2003
15.10.20
0827.0
4.2009
150.
M.V. Go
od Pilgri
ms for G
ML, Ch
ennai
30,000 D
WT Tra
derser
ies Bul
k carrie
r18.1
2.0714.1
1.2008
10.08.20
09151
.M.T
Iswari,
for New
Manga
lore Po
rt Trus
t32-
T. Bolla
rd Pull t
ug20-0
1-0705.0
6.2008
17.08.20
09
2020-21
113
S.NO.
Name of
the Sh
ip / Nam
e of the
Owner
Dead W
eight
Date of
Laying
Date of
Date of
Tonnes
Keel
Launch
ing/Floa
tingDel
ivery
152.
M.V. Go
od Pride
for GM
L, Chen
nai53,0
00 DWT
Diamon
dser
ies Bul
k carrie
r09.0
1.2008
23.03.20
0912.0
4.2010
153.
M.V.Go
od Prece
dent for
GML, C
hennai
53,000 D
WT Dia
mond
series
Bulk ca
rrier
21.03.20
0929.0
3.2010
05.02.20
11154
.Mr.
A.W. De
lima for
VPT, Vis
akhapa
tnam
50-T B
ollard p
ull Tug
21.03.20
0914-0
7-2010
30-12-20
11155
.Ran
i Abbak
ka for In
dian Co
ast Gua
rdInsh
ore Pat
rol Vess
el25-0
6-2007
28-05-20
0905-0
1-2012
156.
M.V. Go
od Trad
e for GM
L, Chen
nai53,0
00 DWT
Diamon
d31-0
3-2010
31-03-20
1117-0
2-2012
Series
Bulk C
arrier
157.
Col. H.
Cart W
right Re
id for
50-T B
ollard p
ull Tug
21.03.20
0904-1
1-2010
10-08-20
12Visa
khapatn
am Po
rt Trust,
Visakh
apatnam
158.
Rani Av
anti Ba
i for Ind
ian Coa
st Guar
dInsh
ore Pat
rol Vess
el25-0
6-2007
28-05-20
0908-0
5-2013
159.
M.V. Go
od Day f
or GML
53000 D
WT Dia
mond
30-12-20
1012-0
6-2012
29-07-20
13Ser
ies Bul
k Carrie
r160
."DH
IRAJ" fo
r Indian
Navy
50T Bol
lard Pu
ll Tug
27-12-20
1003-0
8-2013
24-12-20
13161
."SA
HAS" f
or Indian
Navy
50T Bol
lard Pu
ll Tug
05-03-20
1103-0
8-2013
24-12-20
13162
."HIM
MAT" f
or Indian
Navy
50T Bol
lard Pu
ll Tug
27-12-20
1003-0
8-2013
31-03-20
14163
.Ran
i Durga
vathi for
Indian
Coast G
uard
Inshore
Patrol V
essel
07-01-20
0915-0
5-2010
01-06-20
15164
.SAH
AYAK (V
C 11176
) for Ind
ian Nav
y25 T
BP Tug
07-05-20
1525-0
7-2015
27-01-20
16165
.BAL
WAN (V
C 1117
5) for Ind
ian Nav
y25 T
BP Tug
07-05-20
1525-0
7-2015
30-01-20
16166
.Ran
i Gaidin
liu for Ind
ian Coa
st Guar
dInsh
ore Pat
rol Vess
el29.0
9.2009
06.11.20
1014.0
9.2016
167.
“Buland
”(VC 111
77) for
Indian N
avy25T
BP Tug
11.04.20
1525.0
7.2015
15.11.20
16168
.“Jye
sta” (VC
11173)
for Kan
dla Pot
Trust
50T BP
Tug04.0
1.2012
23.04.20
1629.1
2.2016
169.
Rani Ra
shmoni
for India
n Coas
t Guard
(VC 1
1158)
Inshore
Patrol V
essel
29 Sep 0
918 J
un 11
25 May 1
8170
.Krit
tika (VC
11174)
for Dee
ndayal
Port Tru
st50T
BP Tug
04 Jan 1
223 A
pr 16
20 Sep 1
8171
.Abh
ishek (V
C11179
) for Ind
ian Nav
y10T
BP Tug
16 Sep 1
720 S
ep 18
11 Mar 1
9172
.Aja
(VC 111
81) for
Indian
Navy
10T BP
Tug18 A
ug 17
20 Sep 1
811 M
ar 19
173.
Pontoon
for DG
NP(V)
Pontoon
01 Jun 1
826 M
ar 19
29 Mar 1
9174
.Pon
toon for
DGNP(
V)Pon
toon01 J
un 18
26 Mar 1
929 M
ar 19
175.
Bahadu
r (VC 11
182) for
Indian
Navy
10T BP
Tug18 A
ug 17
20 Sep 1
830 M
ar 19
114 2020-21
S.N
O.Nam
e of the
Ship /
Name of
the Ow
nerDea
d Weigh
tDat
e of Lay
ingDat
e ofDat
e ofTon
nesKee
lLau
nching/
Floating
Deliver
y176
.Ava
tar (VC
11183)
for Ind
ian Nav
y10 T
BP Tug
16 Sep 1
720 S
ep 18
12 Jul 1
9177
.Pon
toon (VC
11188)
to DGN
P(V)
Pontoon
01 Jun 1
823 J
ul 19
26 Jul 1
9178
.Pon
toon (VC
11189)
to DGN
P(V)
Pontoon
01 Jun 1
823 J
ul 19
26 Jul 1
9179
.Ata
l (VC 111
80) for
Indian
Navy
10 T BP
Tug16 S
ep 17
20 Sep 1
821 N
ov 19
180.
Ananta
(VC 111
78) for
Indian N
avy10 T
BP Tug
16 Sep 1
720 S
ep 18
27 Nov 1
9181
.M.V
. Good L
ight (VC
11140)
for GM
L, Chen
nai530
00 DWT
Diamo
nd30 D
ec 10
14 Jun 1
428 N
ov 19
series B
ulk Car
rier182
.OS
S (VC11
184)
Support
Ship
30 Jun 1
425 A
pr 16
31 Oct 2
0