HINDUSTAN SHIPYARD LIMITED ANNUAL REPORT HIGHLIGHTS

HINDUSTAN SHIPYARD LIMITED
PAPERS TO BE LAID ON THE TABLE OF LOK SABHA/RAJYA SABHA
AUTHENTICATED
RAKSHA RAJYA MANTRI
Contents
Board of Directors
....
01
Chairmans Address
....
02
Notice
....
05
Directors Report
....
07
Corporate Governance Report
....
18
Management Discussion & Analysis Report
....
28
Auditors Report
....
39
Comments of the C & AG of India
....
44
Balance Sheet
....
46
Profit & Loss Accounts
....
47
Notes to the Accounts
....
48
Notes forming part of Accounts
....
58
Cash Flow Statement
....
71
Social Overheads
....
72
Last 10 years at a glance
....
74
Ships built
....
76
OUR VISION
To be a National Leader in
Ship & Submarine building and Repairs
OUR MISSION
To imbibe the latest in

Ship / Submarine building and
repair technology and serve
the defence, maritime and
oil sectors through all round
excellence in quality, delivery
and durability
BOARD OF DIRECTORS
(As on date of AGM)
RAdm N K Mishra
NM, IN (Retd.)
Chairman & Managing Director
VAdm A V Subhedar
AVSM, VSM
PERMANENT SPECIAL INVITEES
Shri Ashok KK Meena

IAS
VAdm K R Nair
AVSM, VSM
Chief of Materiel, Indian Navy
VAdm A G Thapliyal
AVSM & Bar
DG, Indian Coast Guard
Shri Rajnish Kumar

Addl. FA & JS (RK), MOD
Shri Skand R Tayal
RAdm Anil Kumar Saxena

NM
DGND, Indian Navy
IFS (Retd.)
Independent Director
Shri Samirendra Chatterjee

IAS (Retd.)
Independent Director
Dr V Bhujanga Rao
DS, CCR & D, DRDO
STATUTORY AUDITORS
M/s B V Rao & Co.
Chartered Accountants, Visakhapatnam
COST AUDITORS
CMA U Prakash
Cmde KS Subramanian
NM, IN (Retd.)
Director (Shipbuilding)
Cost Accountant, Visakhapatnam
INTERNAL AUDITORS
M/s Ambica & Isha
Cmde Ashok Bhal

VSM, IN (Retd.)
Director (Strategic Projects)
Chartered Accountants, Visakhapatnam
Shri Inaitula Baig

Company Secretary
Shri V R S Naga Sarma

Chief Financial Officer &
General Manager (Finance)
BANKERS
Indian Bank
State Bank of India
UCO Bank
Syndicate Bank
Andhra Bank
Canara Bank
Corporate Identity Number (CIN)
U74899AP1952GOI076711
Registered Office :
Gandhigram Post Office,
Gandhigram, Visakhapatnam - 530005
Chairman's Statement
CHAIRMANS STATEMENT IN 62nd AGM

Dear Shareholders,
1.
I have the great pleasure in welcoming you to this 62nd Annual
General Meeting of your company and share some of significant
achievements during the year under review. The Directors Report, &
Audited Financial Statements have already been circulated to you,
with your permission, I take them as read.
2.
Before I move to performance of our company, I would like to
highlight the some of the issues of Global Shipbuilding vis-a-vis Indian
Shipbuilding Industry.
World Shipbuilding Industry
3.
Global Shipbuilding Industry continues to be dominated by China, Korea and Japan. In the interim, other
countries such as Vietnam, Brazil and Philippines and Turkey have made impressive inroads. The global recession,
that severely hit the Industry in beginning 2009, is now showing signs of improvement. By end of 2014, it is hoped
that the Industry will recover and this heralds good fortunes for HSL.
Shipbuilding Industry in India
4.
India has an extensive coastline of more than 7,515 km and has a pool of trained man-power that best suits
shipbuilding Industry. However, Indian shipbuilding industry has not been able to capitalize its strengths and remains
far behind in the international stage.
5.
As per an analysis conducted by ASSOCHAM, Indian Shipbuilding & Ship Repair Industry is likely to witness
opportunities worth Rs 25,000 Cr in coming years as over 41% of Indian ships have crossed 20 years of operations.
India has a total of 1,122 ships in its fleet and 41 per cent of this fall in the age group of 20 years and more.
Considering that the average life of a shipping vessel is about 26 years, most of the existing vessels need to be
replaced. An average cost of constructing a large vessel is about $100 million. Therefore, the size of this opportunity
would be $3.3 billion.
6.
Commercial ship construction at Indian shipyards is dwindling and all private shipyards are now looking for
share in the Defense Shipbuilding which is commercially very attractive. There is also a trend to encourage
participation of private yards in defence shipbuilding. This will throw major challenges to HSL in the coming years.
7.
Now I move ahead to the major highlights of your Company and its performance during the period under
review.
Major Highlights
8.
The Major highlights of the year 2013-14 are as under

(a)
Despite severe financial crisis, the yard has delivered five vessels during the year under review.
(b)
Some of the noteworthy achievements are as follows
(i)
Delivery of Second of 05 nos Inshore Patrol Vessels for Indian Coast Guard.
(ii)
Delivery of M V Good Day, fourth of 05 nos (53000 DWT) Bulk Carriers to M/s GML, Chennai
(iii)
Launching & Delivery of 03 nos. 50 Ton Bollard Pull Tugs to Indian Navy
(iv)
Repair of 20 Vessels of different types for Indian Navy, DCI, ONGC and VPT etc..
(v)
The refit of INS Sindhukirti and Project VC 11184 has been put back on track.
Hindustan Shipyard Limited
Performance
9.
The total income of the company during the year is Rs 519.07 Cr as compared to Rs 562.50 Cr of last year.
Your company has recorded a loss of Rs 46.21 Cr during the said financial year. The losses in the Financial Year
2013-14 are mainly attributable to lean Order Book, reduction in turnover, increase in Pay & Benefits and provision
towards liquidated damages. Consequently, the accumulated losses are increased to Rs 1117.37 Cr as on 31 Mar
2014.
10. As reported last year, your companys financial position continues to be poor and a cause of concern. It has
not been possible to obtain loans from Banks due to the yards poor financial parameters. Notwithstanding above,
the yard has put all efforts to continue production from its internal accruals and funds drawn from RRMI. In order to
ease out the situation, the company has drawn Rs 110 Cr (approx) from the Refurbishment & Replacement of
Machineries & Infrastructure (RRMI) funds for completion of IPVs, Tugs and Sindukirthi submarine etc. The same
would be replenished from the receivables of the said projects. This has been done with the approval of the Board.
Present State of the Yard
11. Our yard is equipped with huge docks, large slipways and adequate carnage. We have a water front of 1000 M
with alongside depth of 10 M all year round. These facilities are conducive to build large ocean going vessels and far
outweigh facilities at other DPSU yards. Keeping this in mind, and that the yard is co-located with large Naval
Establishments, the yard was brought under administrative control of Ministry of Defence in 2010 to undertake
construction of strategic vessels. Pending said transfer, the yard was directed not to take any orders of commercial
ships, presumably to keep the assets at HSL ready for building strategic vessels.
12. Things have changed since the transfer to MoD. Construction of strategic assets has been shelved. The yard is
languishing with orders of only 12 small tugs. Although, some big projects have been nominated, these are with
riders which make them economically unattractive and even these have been inordinately delayed. In the interim,
Defence Procurement Policy has been amended which promotes competition with private shipyards. Accordingly,
HSL is being denied orders on nomination and made to compete with economically sound private yards. In contrast,
other DPSU yards continue to enjoy orders on nomination.
13. It is a myth that HSL is inefficient. This has created such negativity that HSL was not even given RFP for ASW
Crafts and also not nominated for Fleet Support Ships. However, despite serious financial constraints the present
management have been able to put EKM refit and P-11184 back on track. All naval refits during last three years
have been completed on time and few of them which were required for operational commitments have been
delivered before time. In the last FY, the yard delivered 05 new ships, largest amongst all yards (including DPSU
yards) in the country. As regards performance, the net loss of the yard in last three years have been diminishing
year on year (2011-12 Rs 86 Cr, 2012-13 Rs 55 Cr & Rs 2013-14 Rs 46 Cr)
14.
With your permission, now I would like to move ahead with some other aspects of the company.
Grading vide Memorandum of Understanding

15. The Performance of the company for the year, based on self appraisal is Good in terms of the MoU signed
with the Ministry of Defence.
Corporate Governance
16. Your Company constantly endeavors to adopt and maintain highest standards of ethics in all spheres of its
business activities. The company firmly believes that its business role is based on adherence to fundamental principles
of Corporate Governance like honesty, integrity, accountability, adequate disclosures, legal & statutory compliances,
and to protect, promote and safeguard interests of all stakeholders. It also strives to carry out its business obligations
with good corporate values duly discharging its duties for maximum level of transparency in decision making to
avoid conflicts of interests. It also accords due importance to adherence to the adopted corporate values and
objectives and discharging social responsibilities as a responsible corporate citizen. A detailed report on Corporate
Governance forms part of the Directors Report.
Annual Report 2013-14
Financial Restructuring
17. As reported in our earlier reports, the Govt. of India has already sanctioned two Financial Restructuring
Packages to the yard. One in 1997 and another in 2011. Both the Financial Restructuring packages failed to turn
around the yard as both packages did not address the issue of Negative Net worth, Working Capital and Order Book
Improvement. The restructuring packages have addressed only to clear of the legacy liabilities and did not fetch any
financial support towards working capital.
18. This issue has been brought to the notice of Ministry of Defence and in order to turn around the yard, a Fresh
Financial Restructuring proposal to turn net-worth positive and provide working capital has been forwarded to the
Ministry. Presently, the proposal of the yard is under consideration at Ministry.
Future Outlook
19. Our strategic location, well laid out facilities, expertise and experience of our personnel and a conducive
market are indicative of a bright future for the yard. However, the current financial constraints need to be tackled
to remain alive. High value orders such as LPDs and SOVs are on the horizon and thus will increase our Order book
from Rs. 1500 Cr now to at least Rs.12,000 Cr in next two years. The aging workforce would retire in next 2-3 years
and will open avenues for induction of new workforce. We have already inducted around 60 Management Trainees
in last two years and they would be trained to tackle the new orders. Overall the future is bright but the present
dark clouds of financial constraints needs immediate attention.
Human Resource Development
20. Attrition of Permanent workforce is an emerging concern of the yard. In order to tide over the issue and
considering the financial position of the yard, inductions in critical areas are being done through direct recruitment.
Recently, the yard has recruited 31 Management Trainees besides lateral induction.
21. Your company continues to impart training to the new entrants and existing employees as well to increase
the productivity. Your company believes that Human Resource of the company is a valuable asset and put its best
efforts to nurture it through proper training & motivation.
Acknowledgements
22. I would like to conclude by thanking Central and State government authorities, the Ministry of Defence, the
Naval and coast guard authorities, the Dredging Corporation of India Limited, Shipping Corporation of India Limited,
The Oil & Natural Gas Corporation Limited , M/s Good Earth Maritime Limited and the Shareholders for the trust
they have reposed on us. I would like to place on record our thanks to the Comptroller & Auditor General of India,
the Principal Director of Commercial Audit and Ex-Officio Member, the Statutory Auditors, Internal Auditors for the
valuable suggestions and co-operation. I also acknowledge with gratitude the continual assistance and guidance
received from Indian Navy and Coast Guard. Last but not the least I appreciate the vital role and hard work put in by
all employees of the company to achieve its Goal and Board of Directors who have supported the company to
sustain in the tough times.
Jai Hind.
Visakhapatnam
23 Sep 2014
(N K Mishra)
Rear Admiral , IN (Retd.)
Notice
62nd
NOTICE OF
ANNUAL GENERAL MEETING
NOTICE is hereby given that the 62nd Annual General meeting of the Shareholders of the Hindustan Shipyard Ltd.,
will be held on Tuesday, the 23rd September, 2014 at 1200 hours at Registered Office at the Board Room, HSL
Registered & Corporate Office, Gandhigram, Visakhapatnam-530 005 to transact the following business:
1.
Ordinary Business:
(a) To receive, consider and adopt the Directors Report and the Audited Accounts for the year
ended 31 March, 2014 along with the Auditors Report thereon.
(b) To fix the remuneration of the Auditors to be appointed by the Comptroller & Auditor General of India
for the financial year 2014-15.
2.
SPECIAL BUSINESS
(c)
To approve the remuneration of the Cost Auditors for the financial year ending 31 Mar 15 and in this
regard to consider and if thought fit, to pass with or without modification(s) the following resolution as an
Ordinary Resolution.
RESOLVED THAT, pursuant to the provisions of Section 148 and all other applicable provisions
of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules,2014 (including any
statutory modification(s) or re-enactment thereof, for the time being in force), the cost Auditors
appointed by the Board of Directors of the Company, to conduct the audit of the cost records of
the Company, for the financial year ending 31 Mar 2015, be paid the remuneration as set out in
the Statement annexed to the Notice convening this Meeting.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to
do all acts and take all such steps as may be necessary, proper or expedient to give effect to this
resolution.
By order of the Board
Visakhapatnam
11th Jul 2014
(Inaitula Baig)
Company Secretary
Notice
Notes :
1.
A member entitled to attend and vote at the Annual General Meeting (the Meeting) is entitled to appoint
a Proxy to attend and vote instead of himself and a proxy need not be a member of the Company. The
instrument appointing proxy should, however, be deposited at the Registered Office of the Company not less
than 48 hours before the commencement of the meeting.
2.
A Statement pursuant to Section 102 (1) of the Companies Act 2013, relating to the special Business to be
transacted at the Meeting is annexed hereto.
3.
Relevant documents referred to in the accompanying Notice and the Statement are open for inspection by
the Members at the Registered Office of the Company on all working days, during business hours up to the
date of the meeting.
4.
The comments of the comptroller and Auditor General of India under section 619(4) of the Companies Act,
1956 on the Accounts of the Company have not been received so far. These are expected to be received
shortly and will be placed before the Meeting.
To
All the Shareholders,
Directors & Chairman of the Audit Committee.
Permanent Special Invitees
Statutory Auditors,
STATEMENT PURSUANT TO SECTION 102 (1) OF

THE COMPANIES ACT, 2013 (the Act)
Item No. (c)
The Board has approved the appointment of CMA Prakash Uppalapati, Practicing Cost & Management Accountant as
Cost Auditor to conduct the audit of the cost records of the Company for the financial year ending 31 Mar 15 at an
audit fee of Rs.50,000/- plus taxes.
In accordance with the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors)
Rules, 2014, the remuneration payable to the Cost Auditors has to be ratified by the shareholders of the Company.
Accordingly, consent of the Members is sought for passing an Ordinary Resolution as set out at item No. (c) of the
Notice for ratification of the remuneration payable to the Cost Auditors for the financial year ending 31 Mar 2015.
None of the Directors / Key Managerial Personnel of the Company / their relatives are, in any way concerned or interested,
financially or otherwise, in the resolution set out at Item No.(c) of the Notice.
The Board recommends the Ordinary Resolution set out at Item No. (c) of the Notice for approval by the shareholders.
By Order of the Board
(InaitulaBaig)
Company Secretary
Date: 11 Jul 2014
Place: New Delhi
Directors Report
DIRECTORS REPORT FOR THE YEAR 2013-14

The Shareholders,
Gentlemen,
1.
Your Directors are pleased to present the 62nd Annual Report on the working of the Company for the financial
year 2013-14. The audited Profit & Loss account for the financial year 2013-14, Balance Sheet, as on 31 Mar 14,
together with report of the auditors of the Company and comments of Comptroller & Auditor General of India on
the Auditors report under Section 619 (4) of the Companies Act, 1956 are appended to this report.
Capital Structure
2.
As on 31 Mar 14, the authorised share capital and paid up equity share capital of the Company are at Rs
304.00 Cr and Rs 301.99 Cr respectively.
Performance Highlights
2.
Financial Parameters. During the year 2013-14, your Company has recorded a loss of Rs 46.21 Cr. The stated
loss is due to reduction in Ship Repair turnover. With this, the accumulated losses as on 31 Mar 14 has increased to
Rs 1117.37 Cr as compared to Rs 1071.16 Cr reported last year. The negative net worth of the Company has increased
from Rs 769.17 Cr to Rs 815. 38 Cr
Value of Production. During the financial Year 2013-14, your Company achieved a value of production of
3.
Rs 453.39 Cr.
MOU Rating. The performance of the Company during the year 2013-14 is expected to be rated as Good in
4.
accordance with the MOU parameters signed with the Government.
Division-Wise Performance
Shipbuilding
5.
The Shipbuilding Division of your Company has achieved a Value of Production of Rs. 239.14 Cr for 2013-14 as
against Rs.194.66 Cr in the previous year. The yard has set a target turnover of Rs 375 Cr for the current Financial
Year 2014-15
Delivery. During the Financial year 2013-14, the yard has delivered 05 Vessels which include one bulk carrier,
6.
one IPV and three 50 T BP Tugs. This is the largest delivery amongst all private and DPSU yards in the country. This
is a record for the yard and considered a significant achievement as this has been achieved despite severe financial
crunch.
DHIRAJ, SAHAS & HIMMAT, 3 No 50 T BP Tugs delivered to Indian Navy
Directors Report
ICGS Rani Avantibai, second of 05 Nos. Inshore Patrol Vessel

delivered to Indian Coast Guard
7.
Visit of VAdm B.K. Verma, AVSM, COS, ENC on 31st January 2014
The following are the major events during the year 2013-14 :
Sl
Events
Date
Description
Owner
(a)
Floating /
02 Aug 13
Dhiraj, Second of 03 Nos. 50 T Bollard Pull Tug
Indian Navy
Launching
02 Aug 13
Sahas, Third of 03 Nos. 50 T Bollard Pull Tug
Indian Navy
13 Jan 14
Himat, First of 03 Nos. 50 T Bollard Pull Tug
Indian Navy
08 May 13
ICGS Rani Avantibai, second of 05 Nos. Inshore

Patrol Vessel
ICG
29 Jul 13
MV Good Day, fourth of 05 nos. (53000 DWT)

Bulk Carriers
M/s GML
24 Dec 13
Dhiraj, Second of 03 Nos. 50 T Bollard Pull Tug
Indian Navy
24 Dec 13
Sahas, Third of 03 Nos. 50 T Bollard Pull Tug
Indian Navy
31 Mar 14
Himmat, First of 03 Nos. 50 T Bollard Pull Tug
Indian Navy
(b)
Delivery
8
Order Book Position. The present order book of the yard comprise 24 Vessels, which are under various
stages of construction. As on 31 Mar 14, the value of Shipbuilding orders is worth Rs 1558.91 Cr. The details of the
order book are as under:
Sl
Yard Nos
Type of the Vessel
Owner
No of
Vessels
Balance
Contract
Value(In Rs Cr)
(a)
11140
53,000 DWT Diamond series

Bulk Carriers
GML, Chennai
36.88
(b)
11156 58
Inshore Patrol Vessels
Indian Coast Guard
12.15
(c)
11165 72
Inshore Patrol Vessels
Indian Coast Guard
551.12
(d)
11173 74
50 T Bollard pull Tugs
Kandla Port Trust
54.37
(e)
11175 77
25 T Bollard Pull Tugs
Indian Navy
110.24
(f)
11178 83
10T Bollard Pull Tugs
Indian Navy
122.13
(g)
11184
VC 11184
Indian Navy
672.02
24
1558.91
Total
8
Directors Report
9.
Production/ Physical Performance. Shipbuilding production in DWT and capacity utilisation achieved during
the year 2013-14 as compared to previous year are as under:
(a)
The Installed capacity of the yard is 3.5 Pioneer Class vessels, each of 21500 DWT. Hence, the annual
capacity of the yard works out to 75,250 DWT.
(b) As against this, the yard has achieved a capacity utilisation of 38,694 DWT which is 51.42 % of installed
capacity. The capacity utilisation for the last year was 49,458 DWT which translates to 65.73% capacity
utilisation. The reduction of the capacities utilisation is primarily attributed to Low Order Book and poor
financial health to support procurements of materials and payment to service providers.
(c)
The man-hours consumed for each DWT in the current year is recorded as 44.68 manhrs against 46
man-hours recorded last year.
Ship Repairs
10. During the year, Ship Repair Division has undertaken repairs of 20 vessels of different types for Indian Navy,
DCI, SCI, ONGC & VPT etc. The Value of Production of Ship Repair Division during the year is Rs 68.70 Cr as against
Rs 152.98 Cr recorded last year. The decrease is due to overall recession in the maritime sector resulting in reduction
in high value Ship Repair orders. The yard has set a target turnover of Rs 150 Cr for the current Financial
Year 2014-15.
Submarine Repairs
11. During the year 2013-14, the Value of Production in respect of submarine repairs was Rs 145.56 Cr as against
Rs 134.79 Cr of the last year. The target Value of Production for Financial Year 2014-15 is Rs 125 Cr. The initial value
of the Contract was Rs 629.01 Cr, subsequently the Cost has been revised to Rs 990.52 Cr to cater for requirements
of additional material, documentation, infrastructure, Growth of Work, Taxes, Exchange Rate Variation and renewal
of main line cables. The Contractual DP of the project expired on 28 Feb 2014. Statement of Case for extension of
DP upto 31 Mar 2015 and additional sanction of Rs 80 Cr has been submitted to Indian Navy on 07 Feb 2014. The
hull repairs of the submarine have been completed and installation of Engineering, Electrical & Weapon equipment
and piping systems are in progress. The cumulative completion of work as on 31 Mar 14 is 85%.
Operating Results
12.
The summarised financial results of the Company for the year 2013-14 are as under: Description
In Rs. Cr
Ship Building Ship Repairs
Retrofit
Unallocated
Total
VoP
239.13
68.70
145.56
0.00
453.39
Other Income
11.21
48.40
2.21
3.85
65.67
Total Income
250.34
117.10
147.77
3.85
519.06
Expenditure
246.24
21.20
87.42
0.00
354.86
Profit/(Loss) before Depreciation,

Interest and Income Tax (PBDIT)
(87.56)
73.86
30.33
(46.06)
(29.43)
Depreciation
5.59
0.40
1.54
0.00
7.53
Interest & Finance Charges
2.70
5.80
0.02
0.73
9.25
(95.85)
67.66
28.77
(46.79)
(46.21)
Net Profit / (Loss)

Directors Report
Contribution to National Exchequer

13. The contribution of your Company by way of Income tax, service tax, customs duty, excise duty and VAT to
the national exchequer is Rs 26.49 Cr during the year 2013-14.
Future Outlook
14. Backed by a blend of expertise and experience of serving the domestic shipping needs, HSL is now poised to
take up the challenges of the global market in a big way. With a major thrust towards diversification, the technological
capabilities of the yard are channeled to cater to the growing needs of Defence sector. HSL, under administrative
control of MoD, has already been earmarked to undertake construction of various war vessels including IPVs, LPDs
and submarines. Collaboration with specialists in the relevant field is on the anvil. Technology up-gradation is planned
in the critical areas. The Ministry has also pledged to place high value orders. Despite competition from new yards
that are coming up, the future of the yard is bright and with Defence orders, the yard can reach new heights.
Modernisation
15. The present infrastructure of yard is outdated and almost outlived its life. Accordingly, there is an urgent need
to refurbish and also renew plant and machinery to meet the future challenges. The management has planned to
modernise the yard in two phases as under :
(a)
Phase-I. Rs 457.36 Cr has been sanctioned by Govt. of India for Refurbishment & Replacement of Machinery
& Infrastructure (RRMI) under LPD Project. The amount was received on 23 Dec 11. As on date orders worth
Rs 41.43 Cr have been placed, out of which procurement/ work for an amount of Rs 13.07 Cr is completed.
Items Procured and works completed are Fire Tender, Fabrication of Building Dock Gate, Casting and repairs
of RCC keel blocks and installation of CCTV surveillance system etc. Tenders valued Rs 127.79 Cr is under
progress which includes Level luffing cranes at DDSR and new Panel Blasting & Painting Bay.
(b)
Phase-II. The second phase of modernisation involves augmentation of infrastructure to enable construction
of sophisticated warships and strategic vessels for Indian Navy and Coast Guard. This would be funded through
Projects such as SOVs and P 75(I).
Design
16.
During the year 2013-14, the design department has undertaken the following activities:
(a)
Basic designs for 10 T Bollard Pull Tugs
(b)
Detailed design of 50 T Bollard Pull Tugs for Kandla Port Trust and 25 T Bollard Pull Tugs for Indian Navy
have been completed successfully.
(c)
During the period under review design capabilities of the yard have been augmented substantially to
meet the growing demand of Defence Ship buildings. The new softwares procured are as under.
(i)
40 Nos Aveva Marine CAD/CAM licenses.
(ii)
Existing 25 Nos standalone AUTOCAD licenses increased to 35 nos networked AUTOCAD 2014
licences.
(d)
Requisite training has also been imparted.
(e)
Installation of Access Control System in DDO
(f)
Design ToT contract for 08 IPVs Project for Indian Coast Guard has been signed with M/s Garden Reach
Shipbuilders and Engineers Limited.
(g)
The Design office is now engaged with Validation of drawings submitted by M/s Vik Sandwik, Chennai
for project VC 11184.
10
Directors Report
Quality Assurance
17. During 23-24 Dec 13, Surveillance Audit for ISO 9001:2008 Quality Management System was undertaken by
IRQS, Mumbai and the ISO certificate validity was extended upto Sep 2014. In order to improve the quality
consciousness, an in-house lead auditor training course was conducted by IRQS, Mumbai during 13-17 May 14.
18. The Department of Defence Production, MoD had
declared Financial Year 2013-14 as Year of Quality. In
this regard following activities were conducted during the
year 2013-14.
(a)
03 Seminars with involvement of local PSUs

and 14 workshops on various topics by
eminent personalities from IRS, DNV, ABS etc.
(b)
Quality meetings with Indian Navy & Indian

Coast Guard
(c)
07 Competitions on Quality Awareness
(d)
Display of banners at important locations.
(e)
Distribution of handouts of ISO 9001:2008

quality policy of organisation
(f)
Institution of awards for best workshops and work centres
Presentation on Quality by Sri Amith Bhatnagar,

Principal Surveyor, IRS on the eve of Year of Quality 2013-14
19. The Concluding session of Year of Quality 2013-14 was conducted on 30 Apr 2014. The Chief Guest of the
event was Shri C Sri Rama Murthy, Chief Operating Officer from IRS, Mumbai. The function was well attended and
prizes were distributed to winners of competitions conducted during 2013-14.
Safety
20. The management is committed to an accident free and safe working environment. During the year, Plant
Safety inspections were undertaken by safety personnel. Unsafe practices have been identified and remedial measures
have been indicated. During the period under review, regular Central Safety Committee meetings involving members,
co-opted members, other invitees, committee members and office bearers were conducted. Safety banners, posters,
caution boards are displayed in order to create safety awareness among employees.
21.
Safety training programmes were organised for workmen and supervisors and employees of contract workers.
22. 43rd National Safety Day was observed on 04 Mar

14. The Chairman & Managing Director administered the
safety pledge to all personnel of the yard. Safety
competitions were conducted during the Safety Week and
Prizes were distributed to winners. Employees of the yard
were deputed to participate in safety competitions
conducted by the Andhra Pradesh Chapter of National
Safety Council, Hyderabad and Shri S K Durga Prasad did
HSL proud bagging First prize in Telugu Essay Writing and
Telugu Poem contest.
National Safety Day on 4th March 2014
11
Directors Report
23. Fire Service Week was observed during 14 - 20 Apr 13 to create fire safety awareness. Lecture-cumDemonstration was organised by Fire Service Department. The function was well attended by all personnel of the
yard.
Fire Week Celebrations on 14 20 April 2014
Information Technology
24.
Following IT initiatives were undertaken during the year.

(a)
Employee self-service applications have been developed in-house and available on HSL intranet portal
to provide information on Individual Provident Fund Balance, Nominee details etc.
(b)
The Servers have been upgraded to improve the performance of ERP application and the storage space
of intra-mail communications have been enhanced.
(c)
Unified Storage Solution has been implemented to provide secured, encrypted central enterprise storage
space for data sharing requirements of LAN users across the yard.
Environmental Aspects
25. Your Company continues to be environment friendly
and has fulfilled all the statutory requirements of central
and state pollution control boards. The Company is
committed to meet all the stipulated standards to maintain
and protect the environment.
Industrial Relations
26. During the year 2013-14, the Industrial Relation of
the Company remained peaceful and harmonious.
Plantation of Sapling by Sri Ashok K.K. Meena, JS (NS), MOD
Welfare Activities
27. Your Companys concern for the welfare of the employees continues to be paramount and during the year
various welfare measures were implemented. Hindustan Shipyard Recreation (HSR) club assisted by the Company
to undertake various recreation activities for the employees. The Company has renovated and refurbished Crche
facility provided for the Children of Lady employees. HSR Club organised 67th Independence Day and 65th Republic
Day celebrations on 15 Aug 2013 and 26 Jan 2014 respectively at Colony Parade Ground. Cultural Programes were
also organised by the HSR Club on these occasions.
12
Directors Report
Celebration of Independence Day
Training
28. A large number of ITI Apprentices were trained on designated trades. During the year 2013-14, 229 Trade
Apprentices have successfully completed their training and were awarded National Apprenticeship Certificates by
Govt of India, Ministry of Labour and Employment, NCVT, RDAT, Hyderabad. Presently 212 Trade Apprentices are
undergoing apprenticeship training under the Apprentices Act.
29. Training was also imparted to Graduate Engineers and Diploma Holders. 20 Engineering Graduates, 04
Technician (Diploma) Apprentices were trained under the Apprentices Act and awarded Certificate of Proficiencies
by Govt. of India, Ministry of Human Resource Development, Board of Apprenticeship Training (SR), Chennai.
30. The yard also provided on job training and extended facilities for project work to 1114 students of various
Engineering Colleges, Management Institutions and marine Institutions.
Gender Budgeting
31. In pursuance of the directives of the Government of India, a Gender Budgeting Cell has been constituted
with four women Officers to act as a Nodal Agency for all gender responsive budgeting initiatives and to ensure
effective implementation of general development programme for women employees like training, advancement of
skills, provision of welfare amenities at work place etc. There are presently 92 women employees in the yard.
Medical Benefits
32. Your Company runs two dispensaries. The dispensary in the yard works from 07 AM to 10 PM and the other
at residential colony works round the clock to cater for the needs of employees and their dependents. Two ambulances
are available at yard dispensary round the clock. Outpatient medical facilities are extended through a panel of
doctors. Medical facilities are being extended to the employees through referral hospitals and full medical expenses
are being borne by the company in case of hospitalisation due to accidents that occur while on duty. Under referral
system, there are five hospitals which are used for in-patient treatment. The Company bears medical expenses
which are directly paid to the concerned hospitals. Majority of employees and their dependents are covered under
the Medical Reimbursement Scheme for hospitalisation. During the year, an amount of Rs 4.72 Cr was expended
towards medical treatment of employees and their dependents. For crane operators and drivers, annual Eye Check
up by Ophthalmologist from Government Hospital, were arranged. Medical checkups to all Staff and Workmen of
the Company who have crossed more than 50 years of age are taken up under occupational health service. All
retired employees both self and spouse are issued Medical cards to get concessional rates in clinical /lab charges,
without any additional financial burden for the yard.
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Directors Report
Reservation of Posts for SCs/STs

33. Your Company has complied with all Govt. directives
with regard to reservation of posts for SC/ST.
Representation of SC/ST employees in various categories
of posts, recruitments made & numbers filled by members
of SCs/STs during the calendar year 2013 and
representation of Ex-Servicemen & Women employees are
placed at annexure 3, 4 & 5 respectively.
Reservation for Physically Handicapped
34. Reservation for physically handicapped in all groups
viz A, B, C and D posts are being complied as per the
directives of Govt. of India. Present percentage of
physically handicapped employees is 3.01% as against
required 3%.
123rd Birth Anniversary Celebrations of Dr. B.R. Ambedkar
Official Language Implementation

35. Official Language Implementation Committee
meetings and Hindi Workshops were held regularly. Under
Hindi Teaching Scheme, training classes for Hindi Learning
& Typing were conducted for the employees. During the
year, 80 employees participated in Hindi workshops. To
ensure, compliance of Official language policy of Govt. of
India and to encourage use of Hindi, an inter-departmental
monthly incentive scheme is being followed. The Annual
Report, MOU and other documents of the company are
being issued bilingually. To encourage the employees to
read Hindi books, a separate Hindi Library has been set
up. Presently the library has 350 books.
Hindi Day Celebrations
36. Hindi Fortnight was observed during 01-14 Sep 2013. On this occasion, various competitions were organised
and cash awards were presented to winners.
Implementation of Right to Information Act, 2005
37. As per directives of the Govt of India, the RTI Act 2005 is being complied, for which required infrastructure
has been put in place. An RTI portal in the website of the Company is being maintained. Periodical reports on the
progress of implementation of the Act are being submitted to statutory authorities/ Government.
38. All necessary information as per the provisions of RTI Act 2005 are being furnished to information seekers
regularly. During the year 2013-14, your Company received 103 applications (directly and through MoD) and all of
them have been replied.
Corporate Social Responsibility
39. The yard continues to show its commitment towards CSR even though it is not required to allocate dedicated
funds towards CSR being a loss making organization. As a part of it, the Board of Directors has constituted a Board
level sub-Committee on CSR and Sustainability and formulated a CSR & Sustainability Policy and Plan for the year
2013-14. The Chairman of the Committee is Shri Samirendra Chatterjee, IAS (Retd.), Non-official Part time Director.
40. A Senior Management Committee on CSR & Sustainability has also been constituted to monitor the
implementation of the CSR Plan for the year 2013-14. The Senior Management Committee is chaired by an officer
14
Directors Report
in General Manger Cadre with HODs/ Senior Officers from concerned Departments of the yard as its members. The
Committee overseen and implemented the CSR Plan for the year 2013-14.
41. The company has identified some of the need based CSR initiatives for the betterment of the local people and
society with minimum financial commitment. Towards this, an amount of Rs 1,05,000/- was spent during the year
2013-14. The following activities have been undertaken for the betterment of all stakeholders, local people and the
society at large as a part of CSR initiative of the Company:
CSR Activities
(a) World Ozone Day on 16 Sep 2013. A rally was conducted to create public awareness of the dangers of
Ozone depletion and the need to reduce use of CFCs, Carbon emissions etc by over two hundred school and
college students and staff from the educational institutions functioning in HSL township, Members of HSL
Rover Scouts and Scout band.
(b) International Coastal Cleanup Day on 21 Sep 13. 150 (Approx) enthusiastic school and college students
and Staff from educational institutions functioning in the HSL township in Gandhigram, members of the
Rovers Scouts, members of CSR Senior Management Committee of the Company participated to clean up the
sea shore along Varun Beach.
Mega Medical Camps. On 20 Oct 13 & 30 Mar 14 two Mega Medical camps were organised for the
(c)
betterment of the weaker sections of society. Renowned Doctors of various specializations rendered their
valuable support for the cause and free medicines were distributed to needy patients. Around 1000 people of
weaker section benefitted from the camp.
(d) World Environment Protection Day. On 26
Nov 13, World Environment Protection Day was
observed. Essay writing, quiz, slogan and debate
competitions were conducted and prizes were
distributed to winners. A street play titled Vriksho
Rakshati Rakshitaha was also staged at Main Gate,
which drew huge crouds and appreciated by one
and all. In addition members of school children,
teachers and Rover Scouts took out a rally to stress
upon the importance of environment protection.
(e) Blood Donation Camp. On 30 Nov 13, a Blood
Donation camp was organised in association with Playlet on World Environment Protection Day on 26th November 2013
Lions Club of Visakhapatnam. A record number of
254 employees of HSL donated blood. Senior Officers and members of the CSR Committee, Doctors and
Paramedical Staff including representatives of the Unions/Associations participated in the event.
National Energy Conservation Day. On 14 Dec 2013, as a part of Energy Conservation day, the yard
(f)
organised a short play titled Meere Aalochinchandi in residential colony to create awareness among colony
residents regarding energy conservation.
(g) National Road Safety Week (11-17 Jan 14). On 17 Jan 2014, as a part of National Road Safety Week,
the yard organised Sticking of Black Sticker on the head light of vehicles to dissuade driving with high beam
at Scindhia Junction. Around 1500 vehicles (two wheelers/ four wheelers) were stickered by employees of
HSL and H.S. Rover Scouts with the help of local police.
(h) Arrive Alive campaign for Road Safety. 400 (Approx) students along with Lecturers & Teachers of
Hindustan Shipyard Junior College, HS Degree College, Gandhigram Vidya Nililayam and other educational
institutions participated in a rally on Traffic Safety Awareness organised by the yard.
15
Directors Report
(i)
Environment Protection. Saplings were planted in the yard by Chairman of CSR & Sustainability
Committee, Directors and many Senior Officers towards environment protection.
Free Internship Training to Students. Free internship training was imparted to 52 students of
(j)
various colleges and educational institutions under CSR activity during the year 2013-14. Also, two
physically handicapped students were exempted from payment of fee towards Project and research
work at HSL under CSR initiatives during the year 2013-14.
Augmentation of Libraries of Colleges run by
(k)
Gandhigram Education Society. HSL has taken
necessary steps to augment the libraries of the
colleges run by Gandhigram Education Society to
provide quality education to the students of
economically backward and weaker sections of the
society. Shri Samirendra Chatterjee, Chairman of the
CSR Committee handed over books worth
Rs.30, 000/- to the Principals of Junior and Degree
Colleges in the Colony.
Sustainability: Your Company has organised Training
Shri Samirendra Chatterjee, Chairman of the CSR Committee
Programs/ Workshops/ Seminars for Executives, Staff & handed over books to the Principals of Junior and Degree Colleges
Workmen, Year of Quality and taken Energy Saving
Measures as part of its sustainability activities.
42. Apart from the above, the company also bears the expenditures towards electricity and water charges of the
six educational institutions functioning under Gandhigram Education Society (GES). The expenditure on this account
was Rs 71089/- during the year 2013-14.
Corporate Governance Report
43.
A report on Corporate Governance & compliance certificate is placed at Annexure-1.
Management Discussion and Analysis

44.
A report on Management Discussion and Analysis is placed at Annexure-2.
Activities of Vigilance Department

45. Vigilance department in HSL is functioning under the guidance of Central Vigilance Commission and constant
vigil on various activities of HSL is being looked after by the department. Preventive Vigilance was the focus during
the period under review. The main thrust has been given to transparency in procurement through acceleration of eprocurement and vendor development. Vigilance Awareness Week was observed from 28 Oct 13 to 02 Nov 13 to
emphasise the importance of enhanced probity and spread awareness against Corruption. As a part of Vigilance
Awareness Week, vigilance oath was administered and banners were displayed to create awareness. On 30 Oct
2013, a seminar was conducted on Promoting Good Governance-positive contribution of vigilance. Workshops
on the subject Disciplinary proceedings & Tendering Procedures were organised on 29 May 13, 20 Jun 13, 31 Jul
13 and 27 Sep 13 respectively through eminent speakers. During the year, rotation of employees in sensitive posts
has been done based on departmental exigencies, feasibility and work requirement.
Conservation of Energy
46. Information required under the Companies (Amendment) Act 1988 pertaining to Conservation of Energy,
Technology absorption and Foreign earnings and outgo is placed at Annexure-6.
16
Directors Report
Particulars of Employees
47. During the year 2013-14, no employee of HSL drew remuneration in excess of Rs 60 Lakhs per annum, (ie Rs
5 Lakhs per month). Hence, the information required under Section 217(2A) of the Companies Act 1956, read with
the Companies (Particular of Employees) Amendment Rules 2011, be treated as NIL.
Statutory Auditors
48. M/s B V Rao & Co., Visakhapatnam had been appointed as Statutory Auditors of the Company for the financial
year 2013-14 by the Comptroller & Auditor General of India. The fees payable to Statutory Auditors for the year
2013-14 was Rs 1,60,000/- exclusive of Service tax and other pocket expenses.
The reply of the management to the observations of C&AG is placed at Annexure 7.
Directors Responsibility Statement
49. Pursuant to the requirement under section 217(2AA) of the Companies Act 1956 with respect to the Directors
Responsibility Statement, following is hereby confirmed:(a) That in preparation of the annual accounts, the applicable accounting standards had been followed
along with proper explanation relating to material departures.
(b) That the Directors had selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of
affairs of the Company as on 31 Mar 14 and the loss of the Company for the financial year ended 31 Mar 14.
(c)
That the Directors had taken proper & sufficient care for maintenance of adequate accounting records
in safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
(d)
That the Directors had prepared the annual accounts on a going concern basis.
Acknowledgements
50. The Board of Directors acknowledge with gratitude, the valuable guidance & support received from the
Department of Defence Production, Ministry of Defence and Department of Public Enterprise. Your Directors are
particularly thankful to the valued customers i.e. Indian Navy and Coast Guard, Dredging Corporation of India, Oil &
Natural Gas Corporation Limited, Visakhapatnam Port Trust, Kandla Port Trust, Shipping Corporation of India etc.
Your Directors also express their gratitude to Controller of Defence Accounts (Navy), Government of Andhra Pradesh,
Departments of Customs, Income Tax, Excise, Service Tax & Sales Tax for their kind support. The Directors also
acknowledge their gratitude to the clients and all Classification Societies, who have ensured quality and adhered to
the standards. Your Directors also place on record their appreciation for the assistance extended by the Companys
bankers Indian Bank and valuable advice rendered and co-operation extended by the Statutory Auditors i.e.,
M/s B V Rao & Co., Internal Auditors i.e., M/s. Ambika-Isha & Co. and the Officers & Staff of the Offices of the
Principal Director of Commercial Audit & Ex-Officio Member Audit Board, Bangalore and their Headquarters. Your
Directors also wish to place on record its deep appreciation for the valuable contribution of the employees at
various levels for their hard work, dedication and commitment and look forward to their continued involvement
and spirited team effort towards achieving the future goals.
FOR AND ON BEHALF OF
THE BOARD OF DIRECTORS
New Delhi
11 July 2014
(NK Mishra)
Rear Admiral IN (Retd.)
17
Annexure 1
REPORT ON CORPORATE GOVERNANCE

As per the Guidelines issued by the Department of Public Enterprises, Government of India, a Report
on compliance of the provisions on Corporate Governance is enumerated in succeeding paragraphs.
2.
Philosophy on Corporate Governance: Hindustan Shipyard Limited constantly endeavours to adopt and
maintain highest standards of ethics in all spheres of its business activities. The company firmly believes that its
business role is based on adherence to fundamental principles of Corporate Governance like honesty, integrity,
accountability, adequate disclosures, legal & statutory compliances, and to protect, promote and safeguard interests
of all stakeholders. It also strives to carryout its business obligations with good corporate values duly discharging its
duties for maximum level of transparency in decision making to avoid conflicts of interests. It also accords due
importance to adherence the adopted corporate values and objectives and discharging social responsibilities as a
responsible corporate citizen.
Board of Directors
3.
Composition of the Board: The Board of Directors during the Financial Year 13-14 comprised 09 Members
viz. 04 Whole time Directors (Including the Chairman and Managing Director), 02 Part time Government Directors
and 03 Part time Non Officials Directors (Independent Directors).
4.
The details of the members of the Board during the Financial Year ended on 31 Mar 14 are as under:
Name of the Directors
Period
Category of Directorship
No. of Other
Directorship
RAdm N K Mishra, NM
01 Apr 13 to
31 Mar 14
Chairman &Managing Director
Nil
Shri Rakesh Mahajan,
01 Apr 13 to
10 Oct 13
Whole time Director
Nil
Cmde K S Subramanian
01 Apr 13 to
31 Mar 14
Whole time Director
Nil
Cmde K L N Prasad
01 Apr 13 to
31 Mar 14
Whole time Director
Nil
Cmde Ashok Bhal, VSM
01 Apr 13 to
31 Mar 14
Whole time Director
Nil
VAdm K R Nair, AVSM,VSM
01 Apr 13 to
31 Mar 14
Part-time Govt. Director
Shri Ashok K K Meena, IAS
01 Apr 13 to
31 Mar 14
Dr Devi Singh
01 Apr 13 to
31 Mar 14
Part-time Non official Director

(Independent)
Shri Skand R Tayal, IFS
01 Apr 13 to
31 Mar 14

(Independent)
Shri Samirendra Chatterjee, IAS
05 Apr 13 to
31 Mar 14

(Independent)
18
5.
As on date of this report, Vice Admiral AV Subedhar, AVSM, VSM has been appointed as Non official Part time
Director w.e.f 18 Jun 2014 in the place of Vice Admiral K R Nair, AVSM, VSM vide Govt. of India letter 2(12)/2007D(SY) dated 23 Jun 2014.
Profiles of new Director
6.
Vice Admiral A V Subhedar, AVSM, VSM. Vice Admiral AV Subhedar has commissioned in Indian Navy in
August 1977. He is a post graduate in Marine Engineering from Pune University. During his career, spanning over
Three and half decades, Admiral held important assignments, both Afloat and Ashore. He has served on five frontline
warships including a Tenure as Fleet Engineer Officer, Western Fleet in 1998. His important ashore appointments
include Director Naval Training and Ship Production at Naval Headquarters, Director Machinery Trials and Acceptance
Authority (Mumbai), Warship Production Superintendent (Mumbai), General Manager (Refit) Naval Dockyard
Visakhapatnam, Chief Staff Officer(Technical), Eastern Naval Command, Visakhapatnam and Admiral Superintendent,
Naval Dockyard, Mumbai. As Director General Naval Projects, Mumbai, he was responsible for planning and execution
of major technical and marine infrastructure for the Navy on West Coast. For his Meritorious service of exceptionally
high order in Indian Navy, he has been awarded as Vishisht Seva Medal in 2009 and Ati Vishisht Seva Medal in 2011
by the President of India.
7.
The Board of Directors of HSL as on the date of this report is as under:

Category of Directorship
No. of Other
Directorship
Nil
Cmde K.S Subramanian, NM, IN, (Retd)
Whole time Director
Nil
Cmde Ashok Bhal, VSM, IN (Retd)
Whole time Director
Nil
V Adm A V Subhedar, AVSM, VSM, IN
Shri Skand R Tayal, IFS (Retd)

(Independent)
Shri Samirendra Chatterjee, IAS (Retd)

(Independent)
Nil
R Adm Nikunj Kishore Mishra, NM, IN (Retd)
8.
During the year and upto the date of this report the following Directors has left the board due to
superannuation / completion of tenures of their appointment:
(a)
Vice Admiral K R Nair, AVSM, VSM has completed his tenure as Part time Official Director on 18 Jun
2014. Vice Admiral A V Subhedar, AVSM, VSM has been appointed as Part time official Director in lieu.
(b)
Shri Rakesh Mahajan, Director (Finance & Commercial) has relinquished his office of Director (Finance
& Commercial) on 10 Oct 2013 on acceptance of his resignation by the Competent Authority at Ministry
of Defence.
(c)
Dr Devi Singh, has completed his tenure as Part time official Director on 17 May 2014.
(d)
Cmde (Retd.) K L N Prasad, Director (Corporate Planning & Personnel) expired on 20 Jun 2014. Thus the
post of Director (Corporate Planning & Personnel) has fallen vacant.
9.
The Board of Directors wishes to place on record the appreciation of the services rendered by the outgoing
Directors. The Board also deeply regret on the sad and sudden demise of Cmde (Retd.) K L N Prasad.
19
10. Dr Devi Singh has completed his tenure on 17 May 2014 and thus one post of Independent Director post has
fallen vacant since 18 May 2014. Therefore, as on the date of the report, there is one vacancy of Independent
Director needs to be filled by the Govt. of India.
11. Permanent Special Invitees on the Board : During the Year, the following Permanent Special Invitees continued
on the Board:
(a)
Shri Rajnish Kumar, Addl FA & JS (RK), MOD
(b)
Rear Admiral Anil Kumar Saxena, NM
(c)
Dr V Bhujanga Rao, DS, CCR&D, (NS& IC), DRDO
12. In addition, during the Financial year 2013-14 and upto the date of this report, the Govt. of India appointed
the following Permanent Special Invitees on the Board:
(a)
Vice Admiral Anurag G Thapliyal, AVSM & Bar, Director General, Indian Coast Guard
(b)
Vice Admiral K R Nair, AVSM, VSM, Chief of Materiel, Indian Navy
13. Board Meetings. The Board meets at regular intervals during which the company affairs are discussed and
decisions are taken. During the financial year ended 31 Mar 2014, Seven Board Meetings were held on 17 May
2013, 27 Jun 2013, 23 Jul 2013, 12 Sep 2013, 30 Sep 2013, 02 Dec 2013 and 26 Feb 2014.
14. Directors Attendance. Details of Directors attendance at the Board Meetings and Annual General Meeting
are given below.
No. of Meetings
Held during the
tenure of Directors
Attended
Attendance
at last AGM
Radm N K Mishra, NM (Retd)
Yes
Shri Rakesh Mahajan
Yes
Cmde K S Subramanian, NM (Retd)
Yes
Cmde K L N Prasad (Retd)
Yes
Cmde Ashok Bhal, VSM, (Retd)
Yes
VAdm K R Nair, AVSM, VSM
Dr Devi Singh
Yes
Shri Skand R Tayal, IFS
15. Board Procedure. Board Meetings are held at least once in every quarter, and more often if considered
necessary, focusing on business requirements. Every Board meeting is convened through proper and appropriate
advance notice to the Board Members after obtaining approval from Chairman & Managing Director. Detailed
agenda, management reports, other relevant documents are generally circulated well in advance to the members
of the Board in order to have meaningful, informed and focused decisions at the meeting. To address specific urgent
needs, Board meetings are also called at short notice and sometimes considering business exigencies, Resolutions
are also passed through circulation which is confirmed by the Board members in its very next meeting.
20
16. In general, agenda papers are prepared by the concerned officials, concurred by the Functional Directors and
put up for approval of Chairman & Managing Director. Duly approved Board notes and agenda papers are circulated
among the Board members by the Company Secretary.
17. The Board and its members have complete access to all informations of the company. The Board is also free
to recommend inclusion of any matter in agenda for discussion. If necessary, senior management is also called to
provide additional inputs to the items being discussed by the Board / committee.
18. Audit Committee. The Audit Committee of the Board comprises three members viz. Two Part time non
official Directors and One Part time Official Director. The Audit Committee is being chaired by a Non official part
time Director. The following were the Audit Committee Members during the Financial Year 2013-14.
(a)
Dr. Devi Singh

(Part Time Non official director)
Chairman
(b)
Shri Skand R Tayal

(Part Time Non official director)
Member
(c)

(Part Time Official director)
Member
19. The terms of reference of the audit committee are as specified in Sec 292A of the Companies Act, 1956 and
the guidelines issued by the Department of Public Enterprises. The primary function of the committee is to assist
the Board of Directors to fulfill its responsibilities through review of financial reports, internal control systems for
finance, accounting and legal compliance by the management and Board.
20. The Audit Committee reviews Internal Audit Reports, meets Statutory Auditors and Internal Auditors and
discusses their findings, suggestions and other related matters and reviews the half yearly and annual financial
statements before their submissions to the Board.
21. The Chairman of the Committee apprises the Board regarding observations of the Audit Committee during
the Board meeting. The minutes of the Audit Committee meetings are placed before the Board.
22. During the financial year 2013-14, four meetings of the Audit Committee were held on 23 Jul 2013, 12 Sep
2013, 02 Dec 2013, and 26 Feb 2014.
23.
The attendance of the members of the Audit Committee during the financial year 2013-14 is given below
Name of the member
No of meeting
Held during the tenure
Attended
Dr Devi Singh
Shri Skand R Tayal, IFS (Retd.)
24. Procurement Sub Committee: In order to obviate procedural delays in connection with procurement of high
value equipment, a Sub-committee of the Board with vested financial power was constituted in the 366th Board
meeting held on 21 Feb 2012 with the following Members
(a)
RAdm N K Mishra , NM (Retd)

Chairman
21
(b)
Dr Devi Singh
Part time Non official Director
Member
(c)
Shri Rakesh Mahajan

Director (Finance & Commercial)
Member
(d)
Concerned Functional Director
Member
25. In view of the resignation of Director (Finance & Commercial), the Procurement Sub Committee was
reconstituted in 380th Meeting of the Board of Directors held on 26 Feb 2013 with the following members
(a)
Rear Admiral N K Mishra, NM (Retd.)

Chairman
(b)

Part time non official Director
Member
(c)
Member
26. The terms of reference of the committee include powers to approve proposals for procurement of order for
required assets/capital expenditure items, materials, equipment, tools, stores & spares, imports, approvals of works,
sub-contracts, and facility hire valued above Rs 5 Cr and up to the value of Rs 20 Cr in each case for sanctioned
projects except nomination cases. However, the financial powers of Procurement Sub Committee to approve the
proposals were revised for procurement of materials and equipments value above Rs 25 Cr upto Rs 50 Cr for the
Project VC 11184 only.
27. During the Financial year 2013-14, one meeting of the Procurement Sub-Committee was held on 30 Sep 13
where all members were present.
28. Project Review Sub Committee. In order to review
important Govt. Sanctioned Projects and executed by the
Company, a Project Review Sub Committee (PRSC) of the
Board of Director was constituted in the 372nd Meeting of
Board of Director held on 14 Feb 13. The PRSC comprise
following Directors as members:
29.
(a)

Chairman
(b)
Shri Rakesh Mahajan

Member
(c)
Member
Visit of Ambassador (Retd) Skand R. Tayal, Independent Director
The terms of reference of the Committee are as follows:

(a)
Detailed Review of technical and financial progress achieved with reference to the milestones fixed
and scope and specifications prescribed.
(b)
Review adherence to contractual provisions and approved procurement policy of the company in
important cases of procurement.
(c)
To identify deficiencies in the extant procedures and to make suggestions for improvement.
22
30. In view of the resignation of Director (Finance & Commercial), the Project Review Sub Committee was
reconstituted in 380th Meeting of the Board of Directors with the following members
(a)

Chairman
(b)
Cmde K S Subramanian, NM (Retd.)

Member
(c)
Cmde K L N Prasad, (Retd.)

Director (Corporate Planning & Personnel)
Member
(d)
Cmde Ashok Bhal, VSM (Retd.)

Director (Strategic Project)
Member
31. During the Financial year 2013-14, three meetings of the Project Review Sub-Committee were held on 10 Apr
2013, 23 Jul 2013 and 26 Feb 2014.
32. The attendance of the members of the Project Review Sub-Committee during the financial year 2013-14 is
given below:
Name of the member
Shri Rakesh Mahajan
Cmde K S Subramanian, NM (Retd.)
Cmde Ashok Bhal, VSM (Retd)
No of meeting
3
2
3
3
3
Attended
3
2
3
2
3
33. Human Resource Committee. In order to address HR related issues that require the attention of the Board,
the Board in its 379th Meeting 02 Dec 2013 constituted the Human Resource Committee. The HR Committee comprise
following Directors as members:
34.
(a)

Chairman
(b)
Cmde K S Subramanian, NM
Member
(c)
Cmde K L N Prasad
Member

(a) To review and recommend the proposals towards revision in payment of allowances/benefits to the
employees.
(b) To examine the proposals related to other HR related issues like promotion policy of the company,
welfare measures for employees, IR issues etc. and give its recommendations.
(c)
To review and monitor the execution of HR Plan in alignment with companys objective and future
business expansions and recommend the same to the Board for approval
35. During the Financial year 2013-14, one meeting of the HR Committee was held on 25 Jan 2014 where all
members were present.
23
36. Corporate Social Responsibility and Sustainability Sub-Committee. In order to formulate the CSR &
Sustainability Policy and review the activities undertaken, the Board in its 374th Meeting held on 17 May 14 had
constituted the CSR & Sustainability with following Directors as its members
(a)

Chairman
(b)
Shri Rakesh Mahajan

Member
(c)
Cmde K L N Prasad
Member
37. In view of the resignation of Director (Finance & Commercial), the CSR & Sustainability Sub Committee was
reconstituted in 379th Meeting of the Board of Directors held on 02 Dec 2013 with the following members
38.
(a)

Chairman
(b)
Cmde K L N Prasad
Member
(c)
Cmde Ashok Bhal, VSM

Director (Strategic Project)
Member

(a) Formulate and recommend to the Board, Corporate Social Responsibility and Sustainable Development
Policy which shall indicate the activities to be undertaken by the Company.
(b)
Recommend the amount of expenditure to be incurred on the activities referred in clause (a).
(c)
Monitor the Corporate Social Responsibility and Sustainable Development Policy of the Company from
time to time.
39. During the Financial year 2013-14, four meeting of the CSR & Sustainability Sub-Committee was held on 23
Jul 2014, 25 Jan 2014, 26 Feb 2014 and 26 Mar 2014.
40. The attendance of the members of the CSR & Sustainability Sub Committee during the financial year 2013-14
is given below:
Name of the member
No of meeting
Attended
Shri Rakesh Mahajan
Cmde Ashok Bhal, VSM (Retd)
24
41. Remuneration of Whole-time Directors. The remuneration of Whole Time directors is fixed by the Government
as the Company is a Government Company within the meaning of Sec 2 (45) of Companies Act, 2013.
42. Remuneration to Part Time Directors. Part time Official Directors are not eligible for sitting fees attended by
them. The part time Non-Official (Independent) Directors are paid sitting fees as per the provisions of the Companies
Act, 2013 for each meeting of the Board /Committees (s) of the Board and reimbursed actual expenditure to attend
the meeting of the Board/Board Committee (s).
43. Code of Business Conduct and Ethics. As per guidelines issued by Department of Public Enterprises, the
company has formulated Code of Business Conduct and Ethics for Board Members and Senior Management for
better corporate governance and fair/ transparent practices. A copy of the same has been circulated to all concerned
and also available on the website of the Company. The Board members and senior management personnel, to
whom the said code is applicable, have affirmed compliance of the same for the year ended 31 Mar 14.
44. General Meetings. The details of the last three Annual General Meetings and Extra Ordinary General Meetings
of the company are given below:
45.
Year
Date
Time
Location
2010-11
16.09.2011
11.00 A.M
Shipyard House, New Delhi
2011-12
21.09.2012
11.00 A.M
HSL Board Room, Visakhapatnam
2012-13
30.09.2013
10.00 A.M
Extraordinary
General Meeting
27.05.2014
11.00 A.M
Whistle Blower Policy. The Company has its Whistle
Blower Policy and the same has been displayed on the

Website of the Company.
46. Risk Management Policy. The company has framed
a Risk Management Policy and the same has been
approved by the Board. As on the date, the policy is under
implementation.
47. Disclosures. During the year 2013 -14, the company
has not entered into any transactions with any Directors
that may have potential conflict with the interest of the
62nd Annual General Meeting on 23 Sep 2014
company at large. The members of the Board, apart from
receiving Directors remuneration (wherever applicable),
do not have any material or pecuniary relationship or transaction with the company which in judgment of the Board
may affect independence of judgment of the directors.
48. During the last three years, there has been no instance of non-compliance by the company on any matter
related to Companies Act, 1956 or any Industrial Laws.
25
49.
The guidelines issued by the Department of Public Enterprises, Govt of India have been complied with.
50. The company has not incurred any expenditure which is not for the purpose of Business of the Company, nor
has the Company incurred any expenditure which is person in nature for the Board of Directors and top management.
x
DECLARATION
As provided under the guidelines on Corporate Governance for CPSEs 2010 issued by the Department of Public
Enterprise, Government of India, it is hereby declared that all Board members and Senior Management personnel
have affirmed compliance with the code of conduct for Directors and Senior Management personnel of Hindustan
Shipyard Limited for the year ended 31 Mar 2014.
For Hindustan Shipyard Limited
Place: New Delhi

Date: 11 Jul 2014
26
(N K Mishra)
Rear Admiral, IN (Retd.)
27
Management Discussion & Analysis
Annexure 2
MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Structure and Developments
1.
The Indian shipbuilding industry consists of public and private sector yards. India has around 32 shipbuilding
yards operating in public & private sectors. in recent years, the industry has witnessed entry of new shipbuilders
from the private sector. With liberalisation policy of the Government and promulgation of Defence Procurement
Policy-2013 (DPP 2013), these shipbuilders have become serious competitors to Defence Public Sector yards.
2.
With opening of Defence market to Private Sector, your Company is facing stiff competition. To meet this
competition, an intensive modernisation programme has been planned. On successful completion of the said
modernisation programme, your Company will be able to meet the future challenges and remain competitive. The
major customers of your Company, ie Indian Navy & Coast Guard, have announced ambitious expansion plans and
your Company is putting its best efforts to secure lucrative orders from these customers. This would help the yard
to turn around & become profit making.
SWOT Analysis
3.
In the changing environment, your Company has identified following strengths, weaknesses, opportunities
and threats:(a)
Strengths
Largest Shipyard on East Coast of India.
Only Shipyad on East Coast with submarine repair capability
Large covered building dock for un-interrupted work.
Strategically located with water depth of about 10 meters
Capable to build all kinds of vessels up to 80,000 DWT
850m of wharfage with more than adequate cranage
Large Dry dock and wet basin with exclusive workshops for ship repairs
Cranage to handle blocks/ loads upto 300 tons
Three low bed transporters up to 200 tons capacity
(b)
Weaknesses
Aging work force with low productivity
Old plant and machinery with frequent breakdowns
Acute cash/ working capital constraints
Difficulty to retain good contractors & vendors view irregular payments
Weak supply chain management
Lack of high value orders
High overheads due to increased wages
Low teeth to tail ratio
(c)
Opportunities
Increased requirements of ships to meet coastal security/ Defence needs
Large scope for repairs due to increased maritime/ offshore fleet & platforms
National need to Create second line Submarine Construction
Navys requirement for Strategic Vessels to meet Defence needs.
Need for large special ships to collect Intelligence information
Medium Repair/ Mid Life update of Submarines
28
(d)
Threats
Loss of expertise due superannuation.
Poaching by sister PSUs & upcoming yards
Loss of business due new yards on East Coast
Uneven playing field compared to Private Yards
Volitile Exchange Rate Variation
Unfavourable judgements for legal cases
Nonpayment of statutory dues to employees leading to legal tangles and IR climate.
Changing International Maritime Laws
Infrastructure Modernisation
4.
As reported last year, the Refurbishment & Replacement of Machineries and Infrastructure is under progress
with financial support from Govt. of India under LPD Project. In this regard Rs 457.36 Cr has been sanctioned by
Govt. of India for the said purpose. The present status of activities pertaining to RRMI activities till date is as follows:(a) As on date orders worth Rs 41.43 Cr have been placed, out of which procurement/ work for an amount
of Rs 13.07 Cr is completed. Items Procured and works completed includes Fire Tender, Fabrication of Building
Dock Gate, Casting and repairs of RCC keel blocks and installation of CCTV surveillance system etc.
(b) Tenders valued Rs 127.79 Cr is under progress which includes Level luffing cranes at DDSR and new
Panel Blasting & Painting Bay
Segment-wise or Product-wise Performance
5.
Your Company has three major revenue segments i.e. Shipbuilding, Ship Repairs & Submarine Retrofit. The
Value of Production during the Financial Year 2013-14 from these segments was Rs.453.40 Crs.
6.
Segment wise performance during the FY 2013-14 were as under:(a) Shipbuilding. Your Company has delivered 05 Vessels which include one 53,000 DWT Bulk carrier of
M/s GML, Chennai, one IPV and three 50 T BP Tugs. This is the largest delivery amongst all private and DPSU
yards during the year 2013-14. The Shipbuilding Division of your Company has recorded a VOP of Rs 239.14
Cr during the said period.
(b) Ship Repairs. Your Company has undertaken Repairs of 20 Vessels of Indian Navy, DCI, SCI, ONGC and
VPT etc. Ship Repair segment of your Company has always been considered as profitable and is being given
utmost thrust as it carries higher margin comparative to shipbuilding segment. It is unfortunate that Indian
Navy has delayed committed refits of two vessels due to operational reasons. Thus the repair dock could not
be used to its desired potential and also the turnover of repair division was adversely afftected. The Ship
Repair Division recorded a VOP of Rs 68.70 Cr during the year 2013-14.
(c)
Retrofit. Submarine Retrofit Division of your Company concentrates on refit of Submarines. Presently
INS Sindhukirti, an EKM Class Submarine is under Medium Refit-cum-Upgradation. The VOP of this Division
during the Financial Year 2013-14 was Rs 145.56 Cr. This is a presitigeous refit and has been inordinately
delayed to various reasons. However, during the year 2013-14, the refit has made noticeable progress and
the project has been put back on track.
Future Outlook
7.
Our strategic location, expertise experience of our personnel and a conducive market are indicative of a
bright future for the yard. However, the current financial constraints need to be tackled to remain alive. High value
orders such as LPDs and SOVs are on the horizon and thus will increase our Order book from Rs. 1500 Cr now to at
least Rs.12,000 Cr in next two years. The aging workforce would retire in next 2-3 years and will open avenues for
induction of new workforce. We have already inducted around 60 Management Trainees and they would be trained
to tackle the new orders. Overall the future is bright but the present dark clouds of financial constraints needs
immediate attention.
29
Risks & Concerns

8.
Presently the major concern of the Company is shortage of funds and low order book. The ongoing projects
were all taken in distress and all these are loss making. Due to inadequate Working Capital, ongoing projects are
being adversely affected as the yard unable to make timely payments to contractors, service providers and suppliers.
Other areas of concerns include negative networth, aged workforce, high attrition of permanent workforce due
superannuation, old and aged plant & machineries etc. This in all lead to slippage of contract schedules, increase in
the cost and imposition of Liquidated Damages. Due to new procurement policies of the Government for defence
equipment, the company is at risk of loosing business to private players.
9.
Acute shortage of funds (working capital) is affecting the yard adversely. Due to irregular payments, reliable
suppliers and contractors are slowly losing their interest. The salaries and wages of the employees are barely met by
drawing the funds from other projects leading to delay in projects. Further, though the present order book comprises
24 vessels of various categories. 22 of them are small which are not suited to a yard designed for large ships. The
present order book is Rs 1559 Cr which is far below break even orderbook of Rs 5,000 Cr. Further, the Ship Repair
business of the Company which has always been profitable, has been drastically reduced due to down turn in the
maritime sector. Even the Ship Repair orders placed on nomination by Indian Navy has been delayed by almost a
year which had adverse effect on the Ship Repair business.
10. Another area of concern is that the high value orders i.e. LPDs, SOV and Project 75 (I) which have been
nominate have been delayed. Hence, these orders will not be of any immediate help.
Financial Restructuring
11. As reported in our earlier reports, the Govt. of India has already sanctioned two Financial Restructuring
Package to the yard. One in 1997 and another in 2011. Both the Financial Restructuirng packages failed to turn
around the yard as both packages did not address the issue of Negetive Networth, Working Capital and Order Book
Imporvement. The restructuring packages have addressed only to clear of the legacy liabilities and did not fetch any
financial support towards working capital. As a result, the ongoing projects have been delayed leading to imposition
of LD and also low turnover. Year on year the yard has been recoding losses and presently the financial health is
precarious and the yard is unable to pay statutory dues like salaries, wages, PF, Gratuity etc. Employees of the yard
have even filed cases before Regional Labour Commissioner to release their terminal benefit at the earliest which
has now become a cause of concern. The situation has been temporaily brought under control through a temporay
loan of Rs 46 Cr, from funds allocated for repair of infrasrucrure, to pay gratuity liabilities.Further, with the above
temporary measure, the yard has been able to progress the ongoing projects.
12. These issues have been brought to the notice of Ministry of Defence and in order to turn around the yard, a
Fresh Financial Restructuring proposal has been forwarded to the Ministry. Presently, the proposal of the yard is
under consideration at Ministry.
Internal Control System and their Adequacy
13. Your Company has a robust system of Internal Controls to achieve effective and efficient operations, reliability
of financial reports and compliance to applicable laws and regulations. The system comprises clear defined
organisatonal structure, pre-identified authority levels and procedures issued by the management covering all vital
and important areas of activities. viz. Purchase, Material Control, Works, Finance & Accounts, Personnel etc.
14. For the year 2013-14, your Company has outsourced internal audit to M/s Ambica & Isha, Chartered
Accountants, Visakhapatnam which is a Chartered Accoutant firm of repute.
15. The Internal Control Systems are reviewed regularly by the Audit Committee. The adequacy of Internal Control
procedures is also reviewed by the Statutory Auditors in their Audit Report. Your Company, being owned by
Government, is subject to Government Audit also.
30
Financial Performance of the Company

16.
The Financial performance of your Company during the year as compared to the last year are as under.
In Rs Cr
Details
As on 31 Mar 14
As on 31 Mar 13
Total Income
519.06
562.50
Profit / (Loss) Before Depreciation, Interest & Tax
(29.43)
(29.52)
Profit / (Loss) Before Tax
(46.21)
(55.17)
Profit / (Loss) after Tax
(46.21)
(55.17)
(1117.37)
(1071.26)
Cumulative Profits / (Losses)
17. The reasons for losses in the Financial Year 2013-14 have been analysed and points to operational performance
of the Company. The reduction in total income, increase in pay and allowances and provision for LD have all
contributed to losses shown in the profit and loss statements. Consequently, the contribution has also reduced and
inadequate to meet the fixed expenses of the yard.
18. The present order book comprise 24 vessels of Rs 1569 Cr against a breakeven orderbook of Rs 5,000 Cr,
Accordingly, the compny has posted losses.
Development in Human Resource
19. The company places paramount importance on its human resourse. Regular training and skill improvement
programmes have been undertaken to ensure that the employees are full trained to handle state of art technology.
Awareness training on occupational health safety, environment & fire fighting were also conducted during the year.
20. There has been no induction at lower levels and accordingly the middle management is almost non existent.
This has been addressed and 34 Management Trainees and other Senior Officers in the ranks of DGM/AGM/GM
have been inducted during the year.
21. During the Year, 229 Trade Apprentices have been successfully trained at our Apprentice Training School.
These personnel have been awarded National Apprenticeship Certificates iisued by Govt. of India, Ministry of Labour
and Employment, NCVT, RDAT, Hyderabad.
Industrial Relations
22.
The industrial relations were cordial and harmonious during the year 2013-14.
Environment Aspects
23. Your Company continues to be environment friendly and has fulfilled all the statutory requirements of central
and state pollution control boards. The Company is committed to meet all the stipulated standards for maintaining
and protecting the environment.
Corporate Social Responsibility
24. Being Loss making, it is not mandatory to allocate dedicated funds towards CSR. However your yard remains
committed to CSR. As a part of it, the Board of Directors has constituted a Board level sub-Committee to oversee
and guide CSR activities. A CSR & Sustainability Policy and Plan for the year 2013-14 has been evolved. In addition,
a Senior Management Committee on CSR & Sustainability has also been constituted to monitor the implementation
of the CSR Plan for the year 2013-14.
25. The company has identified some of the need based CSR initiatives for the betterment of the local people and
society with limited financial commitment. Towards this, an amount of Rs 1,05,000/- was spent during the year
2013-14. The activities undertaken during the year 2013-14 has been detailed in the Diectors Report.
****
31
32
256
1498
263
57
GROUP B
GROUP C
GROUP D (Excluding Safaiwala)
GROUP D Safaiwala
GROUP C
GROUP D Safaiwala
33
29
644
12
GROUP C
GROUP D (Including Safaiwala)
GROUP D (Safaiwala)
GROUP B
GROUP A
FIXED TERM CONTRACT:
147
GROUP B
GROUP D(under Apprentices Act, 1961)
GROUP A
TEMPORARY:
126
Total
Strength
GROUP A
PERMANENT:
Classification of Post/ Services
148
31
57
48
207
51
31
Scheduled
Castes
As on 1st January 2013
28
11
59
28
13
Scheduled
Tribes
10
676
25
31
83
51
238
1234
234
113
Total
Strength
157
28
51
42
176
47
28
Scheduled
Castes
As on 1st January 2014
26
60
24
13
Scheduled
Tribes
POSITION REGARDING REPRESENTATION OF SCHEDULED CASTE AND SCHEDULED TRIBE IN VARIOUS

CATEGORIES OF POSTS AS ON 1st JAN 2013 AND 1ST JAN, 2014
Annexure - 3
Annexure - 3
2
-
GROUP C
GROUP D Safaiwala
GROUP C

-
GROUP B
GROUP D Safaiwala
GROUP A
FIXED TERM CONTRACT:
268
18
GROUP B
GROUP D(under Apprentices Act, 1961)
Total
Number of
Posts filled
during the
year
GROUP A
PERMANENT:
Classification of Posts/Services
43
Posts
Reserved
55
Posts
Filled
Scheduled Castes
18
Posts
Reserved
16
Posts
Filled
Scheduled Tribes
Candidates not available
Reason for
shortfall and
steps taken
to improve
the Position
PARTICULARS OF RECRUITMENT MADE DURING THE CALENDAR YEAR 2013 AND THE NUMBER FILLED BY
MEMBERS OF SCs/STs
Annexure - 4
Annexure - 4
33
34
234
1234
238
51
81
GROUP B
GROUP C
GROUP D Safaiwala
GROUP D(Under Apprentices Act,1961)
25
676
GROUP C

10
31
GROUP B
GROUP D Safaiwala
GROUP A
FIXED TERM CONTRACT FOR TWO YEARS :
113
Total Strength
GROUP A
PERMANENT:
Classification of Posts/Services
20
14
Number
28.00
64.51
1.26
0.72
0.42
12.38
Ex- servicemen
29
18
Number
90.00
0.73
12.00
6.45
15.68
3.78
2.35
7.69
7.96
Women employees
REPRESENTATAION OF EX-SERVICEMEN IN GROUP C AND D AND NUMBER OF WOMEN EMPLOYEES AS ON

1st JANUARY 2014
Annexure - 5
Annexure - 5
Annexure - 6
Annexure - 6
INFORMATION AS PER SECTION 217(1)(E) READ WITH THE COMPANIES

(DISCLOSURE OF PARTICULARS IN THE REPORT OF DIRECTORS) RULES 1988 AND
FORMING PART OF THE DIRECTORS REPORT FOR THE YEAR 2013-14
CONSERVATION OF ENERGY
a)
Energy conservation measures taken:
1.
Optimisation of Lighting levels and use of CFL lamps.
2.
Use of heavy loads (Air Compressors etc) restricted to

minimum.
3.
Operation of Distribution Transformer limited to 70%.
4.
Strict compliance of Plant & Machinery running hours.
5.
Replacements of old welding machines with new energy

efficient welding machines.
6.
Use of capacitor banks to improve the power factor thereby

reducing the overall power consumption.
7.
Replacement of old switchgear & old PLCA cables with new

generation XLPE Cables & new Switch gear etc.
8.
Replacements of old Air Conditioners with BEE certified star

rated appliances
b)
Additional investments and proposals, if any,

being implemented for reduction of consumption
of energy.
NIL
c)
Impact of the measures at (a) & (b) above for

reduction of energy consumption and
consequent impact on the cost of production of
goods during the year 2013-14.
3,52,600 Units
d)
Particulars with respect to conservation of energy:

FORMA
Power and Fuel Consumption
1.
Current Year
Previous Year
74,97,500 Units
92,39,000 Units
Total Amount
` 6,92,40,500
` 5,90,72,714
Rate per Unit
` 9.2
` 6.4
Nil
Nil
Electricity
a) Purchased units
b)
Own generation
2.
Coal
Nil
Nil
3.
Furnace Oil
Nil
Nil
4.
Consumption per unit of production
N.A.
N.A.
35
Annexure - 6
FORM -B
A. RESEARCH & DEVELOPMENT
1.
2.
Specific areas in which R&D was carried out
Benefits derived as a result of the above R&D
3.
Future Plan of Action
4.
Expenditure on R&D
B.
In house Designs development for
Basic designs for 10 T Bollard Pull Tugs
Detailed design of 50 T Bollard Pull Tugs for Kandla

Port Trust and 25 T Bollard Pull Tugs for Indian Navy
have been completed successfully
Saving in Design cost and time.
Enhancement of in-house Design capabilities.
With the recent procurement of 40 Aveva Marine

Design licenses and 10 additional Autocad 2014
licenses, the yard plans to improve the quality of
production and design by laying emphasis on composite
drawings which are essential for modular construction.
(a)
Capital;
.........
(b)
Recurring (Revenue)
.........
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATIONS

Nil
C.
FOREIGN EXCHANGE EARNINGS & OUTGO
a)
Activities relating to export Initiatives taken

to increase export market for products and
services and export plans.
b)
Nil
Total Foreign Exchange used and earned:

Used :
a)
Material procurement
` 124.44 Crores
b)
Others
Total
` 129.17 Crores
Earned
36
4.73 Crores
1.47 Crores
Annexure - 7
Annexure -7
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION

619(4) OF THE COMPANIES ACT,1956 ON THE ANNUAL ACCOUNTS OF HINDUSTAN
SHIPYARD LIMITED FOR THE YEAR ENDED 31 MARCH 2014 AND THE REPLIES OF THE
BOARD OF DIRECTORS
Comment
Comments on Balance Sheet
Equity and Liabilities:
Current Liabilities (Note-4)
Other Current Liabilities: Rs 857.29 crore
Advances from GoI for RRMI:
Rs 488.55 crore
A reference is invited to the Comments of the
Comptroller and Auditor General of India on the
annual accounts of the Company for the year 201213 wherein non-provision for liability for interest of
Rs 42.18 crore earned during 2011-12 and 2012-13
to be credited to Government was pointed out. The
interest was earned by the Company on advance
funds received for Refurbishment and Replacement
of Machinery and Infrastructure (RRMI) Scheme not
utilised for the intended purpose within the
stipulated period of one year but kept in term
deposits. As per terms of the sanction, the interest
was to be credited to Government.
During the year 2013-14 also, the Company neither
paid the above interest to Government nor provided
for the liability. Further, the Company utilised Rs
103.05 crore from RRMI funds for meeting various
working capital requirements in contravention of the
terms of sanction. Hence, notional interest of Rs
5.53 crore that would have been earned if invested
in similar term deposits was also not credited to
Government in accordance with the terms of
sanction.
Non-provision for interest earned on the RRMI funds
to be credited to Government resulted in
understatement of liability as well as accumulated
loss by Rs 47.71 crore.
Company's Reply
In Dec 2011, the GoI has sanctioned an amount of Rs
457.36 Cr for Refurbishment and Replacement of
Machinery and Infrastructure (RRMI) at HSL. As per
the sanction, HSL is required to submit utilization
certificate within one year and in case of nonutilization of the sanctioned amount within one year,
interest earned on the unutilized funds would be
credited to the Govt. As per interpretation of HSL,
interest earned within one year. i.e. Rs 42.18 Cr will
be to the credit of HSL and interest earned on
unutilized funds beyond one year will be to the credit
of the Government. Accordingly, interest of Rs 42.18
Cr earned within one year was accounted as other
income in the years 2011-12 & 2012-13. However,
since Govt. Audit had taken a different view on the
accounts for FY 2012-13 and intimated that the said
interest of Rs 42.18 Cr should be shown as a liability
of HSL, the company had approached MoD for a
clarification/ approval for retention of the said
interest. Further in Feb 2014, the company has
submitted a Fresh Financial Restructuring Proposal
(FFR), in which the interest earned on RRMI funds up
to 31 Dec 2013 of Rs 72.64 Cr including the above
said interest of Rs 42.18 Cr was sought as Grant-inAid. The said FFR proposal is under active
consideration of GoI. In view of the said position, no
provision was made towards the said interest of
Rs 42.18 Cr.
In addition to the above, considering the financial
condition of the yard, the Board had approved
temporary utilization of RRMI funds up to Rs 110.00
Cr for completion of on-going Defence projects with
a condition that such drawal be replenished on
receipt of stage payments of the respective projects.
In this regard, the company has utilized an amount
of Rs 103.05 Cr as on 31 Mar 2014. The computation
of interest of Rs 5.53 Cr on the said drawals is only
37
Annexure - 7
Comment
Company's Reply
on notional basis and not an earned interest. Since
the Sanction letter of GoI stipulates condition with
regard to interest earned only, the company is of the
opinion that no provision is required towards the said
notional interest.
The above position has been disclosed at Note No.14
(a) & (b) in the Notes forming Part of Accounts.
FOR AND ON BEHALF OF

THE BOARD OF DIRECTORS
Visakhapatnam
08 Sep 2014
38
(N.K. Mishra)
Rear Admiral (Retd.)
Chairman and Managing Director
Auditor's Report
B.V. Rao & Co.

Chartered Accountants
INDEPENDENT AUDITORS REPORT

To
The Members,
Hindustan Shipyard Limited,
VISAKHAPATNAM
Report on the Financial Statements
We have audited the accompanying Financial Statements of Hindustan Shipyard Limited (herein after called
the company), which comprise the Balance Sheet as at 31st March 2014, the statements of Profit and Loss
and Cash Flow for the year ended 31st March 2014 and a Summary of Significant Accounting Policies and
other explanatory information.
The Managements Responsibility for the Financial Statements
The Companys management is responsible for the preparation of these Financial Statements that give a true
and fair view of the financial position, financial performance and cash flows of the company in accordance
with the Accounting Standards notified under the Companies Act, 1956 (the Act) read with the general Circular
no. 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs, GoI, in respect of Section 133 of
the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This
Responsibility includes the design, implementation and maintenance of internal control relevant to the
preparation and presentation of the Financial Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these Financial Statements based on our audit. We conducted
our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of
India. Those Standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
Financial Statements. The procedures selected depend on the Auditors judgement, including the assessment
of the risks of material misstatement of the Financial Statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the companys preparation and fair
presentation of the Financial Statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the companys internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well as evaluating the overall
presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
39
Auditor's Report
Emphasis of Matter
Without qualifying our opinion, we draw attention to the following:
a)
Note 17 of Notes to accounts, regarding non receipt of letters of balance confirmation from various
customers/creditors.
b)
Note 14 (a) & (b) of Notes to accounts, No provisions are made towards interest of Rs.42.18 crores
for the years 2011-12 &2012-13 and notional interest of Rs.5.53 crores for the year 2013-14 to GOI
pending utilization of RRMI funds as per terms of the sanction.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial
statements give the information required by the Act in the manner so required and give a true and fair view
in conformity with the accounting principles generally accepted in India:
(i)
In the case of the balance sheet, of the state of affairs of the Company as at 31 March 2014;
(ii)
In the case of the statement of profit and loss, of the profit for the year ended on that date; and
(iii)
In the case of the cash flow statement, of the cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements

1.
As required by the Companies (Auditors Report) Order, 2003 (the Order) issued by the Central Government
of India in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
2.
As required by Section 227(3) of the Act, we report that:

a)
We have obtained all the Information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit;
b)
In our opinion, proper books of account as required by law have been kept by the Company so far as
appears from our examination of those books.
c)
The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this
report are in agreement with the books of account.
d)
In our opinion, the Balance Sheet, the Statement of Profit and loss and the Cash Flow Statement comply
with accounting standards notified under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,
2013.
e)
The provisions of section 274(1)(g) of the Act, are not applicable to this company vide notification
No.G.S.R.829(E) dated October 21,2003 issued by Department of company affairs, Government of India.
Place: New Delhi

Date: 11-07-2014
FOR B.V.RAO & Co.

CHARTERED ACCOUNTANTS
F.R.N 003118S
(CA.B.Vinay Kumar)
Partner
(M.No:223723)
40
Auditor's Report
ANNEXURE TO THE AUDITORS REPORT

Referred to point no.1 of Report on Other Legal and Regulatory Requirements of our Report of even date
1.
2.
3.
4.
Fixed Assets
(a)
Although the company has maintained proper records showing full particulars including quantitative
details of fixed assets and situation of fixed assets, some of the fixed assets were not readily identifiable
with the plant identification numbers noted in the register. The company has initiated steps to record
the asset identification numbers on such assets.
(b)
The fixed assets have been physically verified by the management in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such verification;
(c)
The Company has not disposed off substantial part of fixed assets during the year and the going concern
status of the Company is not affected.
Physical verification and reconciliation of Inventories

(a)
Physical verification of inventory has been conducted by the management at reasonable interval during
the year;
(b)
In our opinion and according to the information and explanations given to us, the procedures of physical
verification of inventories followed by the management are reasonable and adequate in relation to the
size of the company and nature of its business.
(c)
The company has maintained proper records of inventories. As explained to us, there were no material
discrepancies noticed on physical verification of inventories as compared to the book records.
Loans and Advances to parties covered in register maintained under section 301 of the Companies Act,
1956 (the Act)
(a)
The Company has not granted any loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under section 301 of the companies Act, 1956.
(b)
The Company has not taken any loans, secured or unsecured from companies, firms or other parties
covered in the register maintained under section 301 of the companies Act, 1956.
Internal Control systems

In our opinion and according to the information and explanations given to us, there is an adequate internal
control system commensurate with the size of the company and the nature of its business for the purchases
of inventories and fixed assets and for sale of goods and services. During the course of our audit we have not
observed any continuing failure to correct major weakness in such internal control system.
5.
Transactions to be entered into Register maintained under Section 301 of the Act.
According to the information and explanations given to us, there were no contracts or arrangements referred
to in section 301 of Companies Act,1956 that need to be entered into Register required to be maintained in
pursuance of Section 301 of the Companies Act, 1956. In view of the above, clause 4(v)(b) is not applicable.
6.
Acceptance of Deposits from Public

According to the information and explanations given to us, the company has not accepted any deposit from
the public. Therefore, the provisions of clause(vi) of the paragraph 4 of the order are not applicable to the
company.
7.
Internal Audit System

In our opinion, the Company has an internal audit system commensurate with the size and nature of its
business.
41
Auditor's Report
8.
Maintenance of Cost Records

We have broadly reviewed the books of accounts maintained by the Company pursuant to the Rules made by
the Central Government for the maintenance of Cost Records under Section 209(1) (d) of the Companies Act,
1956. We are informed that compilation of cost accounting records for the current year is in progress and
hence we have not carried out a detailed examination of the records with a view to determine whether they
are accurate and complete.
9.
Payments and remittances to Statutory Authorities

(a)
According to the records of the Company, undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory
dues applicable to it have been generally deposited regularly with the concerned authorities. On a
broad examination and according to the information and explanations given to us, we have not come
across any undisputed amounts payable in respect of the aforesaid dues that were in arrears as at 31st
March 2014, for a period of more than six months from the date they became payable.
(b)
As at March 31, 2014, according to the records of the company and information and explanations
given to us, the following are the dues on account of Provident Fund, Employee State Insurance, Property
Tax, Service Tax and Cess, VAT, NALA Tax matters that have not been deposited on account of any
dispute:
Name of
the
Statute
Nature
of
dues
From
where
pending
Subject Matter
GVMC
Property
Tax
13.39
1984-85 to
1994-95
High Court
Property Tax on Commercial Complex
EPF & MP Penal

Act, 1952 Interest
109.78
May, 2002 to
Feb, 2005
High Court
Penal Interest on belated remittances

of Provident Fund Contributions
ESI Act ESI dues +

Interest
83.29
April 1,1998 to
Sep 30, 2000
High Court
ESI dues in respect of C Series

workmen
ESI Act
ESI dues
180.24
April 1985 to
March 1993
High Court
ESI dues in respect of temporary

workmen and contractors
contribution
Finance Service
Act, 1994
Tax
2081.31
2005 to 2007
CESTAT
Service Tax demand in respect of INS

Sindhukeerthi
Finance Service
Act, 1994
Tax
367.70
2001 to 2012
CESTAT
Service Tax demand in respect of Ship

Repairs
APVAT Act
VAT
2552
2006 to 2011
STAT, ADC
VAT demand in respect of Ship Repairs
RR Act,
1864
NALA Tax
4.54
2000-01
AP State
Revenue
Dept.
Non-Agricultural Land Assessment Tax

Demands
TOTAL
10.
Amount Period to which

(Rs. in
the amount
lacs)
relates
5392.25
Accumulated Losses
The Company has accumulated losses which are more than fifty percent of its net worth. Beside it has incurred
cash loss in the financial year covered by our audit and the immediately preceding financial year.
11.
Repayment of dues to Banks or Financial Institutions

In our opinion and according to the records produced to us, the Company has not defaulted in repayment of
its dues to any Financial Institution or Bank during the year.
42
Auditor's Report
12.
Loans and Advances on the basis of security by way of pledge of Shares etc.
In our opinion and according to the information and explanations given to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
13.
Chit Fund or Nidhi / Mutual Benefit Fund / Society

In our opinion the Company is not a chit fund or a nidhi /mutual benefit fund / society. Therefore, the provisions
of clause (xiii) of paragraph 4 of the order are not applicable to the Company.
14.
Trading in Shares etc.

In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments.
Accordingly, the provisions of clause (xiv) of paragraph 4 of the order are not applicable to the Company.
15.
Guarantee for Loan taken by others

We are informed that the Company has not given any guarantee for loans taken by others from banks or
financial institutions.
16.
Application of Term Loans

According to the information and explanation given to us, during the year the company has not availed of any
term loan, within the meaning of the clause (xvi) of paragraph 4 of the order.
17.
Usage of Short Term and Long Term Funds

According to the information and explanations given to us and on overall examination of the Balance Sheet of
the company, we report that no funds raised on short-term basis have been used for long-term investment
and vice versa.
18.
Preferential Allotment of Shares

According to the information and explanations given to us, the Company has not made any preferential
allotment of shares to parties and companies covered in the register maintained under Section 301 of the
Act, during the year.
19.
Issue of Debentures
According to the information and as per records, the Company has not issued debentures during the year.
20.
End use of money raised by Public Issue

According to the information and explanations given to us, the Company has not raised money by public
issues during the year.
21.
Frauds
FCM Travels, a service provider, inflated domestic and international air travel tickets arranged during the
period from September 2009 to March 2013 by Rs. 47.80 lacs and FCM Travels has given the credit note for
the above specified amount and the same adjusted in the books of the company as on 31-03-2014.
Except as stated above, according to the information and explanations given to us, no fraud on or by the
company has been noticed or reported during the year that causes the financial statements to be materially
misstated.
Place: New Delhi

Date: 11 Jul 2014
FOR B.V.RAO & Co.

CHARTERED ACCOUNTANTS
Regn. No. (F.R.N) 003118S
(CA.B.Vinay Kumar)
Partner
M.No:223723
43
C & AG Comments
Comments of the Comptroller and Auditor General of India under Section 619 (4) of the Companies Act, 1956
on the annual accounts of Hindustan Shipyard Limited, Visakhapatnam for the year ended 31 March 2014.
The Preparation of financial statements of Hindustan Shipyard Limited, Visakhapatnam for the year ended 31
March 2014 in accordance with the financial reporting frame work prescribed under the Companies Act, 1956 is the
responsibility of the management of the Company. The Statutory Auditor appointed by the Comptroller and Auditor
General of India under Section 619 (2) of the Companies Act, 1956 is responsible for expressing opinion on these
financial statements under Section 227 of the Companies Act, 1956 based on independent audit in accordance with
the Standards on Auditing prescribed by their professional body, the Institute of Chartered Accountants of India.
This is stated to have been done by them vide their Audit Report dated 11 July 2014.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section
619 (3) (b) of the Companies Act, 1956 of the financial statements of Hindustan Shipyard Limited, Visakhapatnam
for the year ended 31 March 2014. This supplementary audit has been carried out independently without access to
working papers of Statutory Auditors and is limited primarily to inquiries of Statutory Auditors and Company Personnel
and a selective examination of some of the accounting records. Based on my supplementary Audit, I would like to
highlight the following significant matters under section 619 (4) of the Companies Act 1956 which have come to my
attention and which in my view are necessary for enabling a better understanding of the financial statements and
the related Audit report.
Comments on Balance Sheet
Equity and Liabilities :
Current Liabilities (Note-4)
Other Current Liabilities : `857.29 crores
Advances from GoI for RRMI : `488.55 crore
A reference is invitied to the Comments of the Comptroller and Auditor General of India on the annual accounts of
the Company for the year 2012-13 wherein non-provision for liability for interest of `42.18 crore earned during
2011-12 and 2012-13 to be credited to Government was pointed out. The interest was earned by the Company on
advance funds received for Refurbishment and Replacement of Machinery and Infrastructure (RRMI) Scheme not
utilised for the intended purpose within the stipulated period of one year but kept in term deposits. As per terms of
the sanction, the interest was to be credited to Government.
During the year 2013-14 also, the Company neither paid the above interest to Government nor provided for the
liability. Further, the Company utilised `103.05 crore from RRMI funds for meeting various working capital
requirements in contravention of the terms of sanction. Hence, notional interest of `5.53 crore that would have
been earned if invested in similar term deposits was also not credited to Government in accordance with the terms
of sanction.
Non-provision for interest earned on the RRMI funds to be credited to Government resulted in understatement of
liability as well as accumulated loss by `47.71 crore.
For and on behalf of the
Comptroller & Auditor General of India
Sd/(V. K. Girijavallabhan, IA&AS)
Pr. Director of Commercial Audit &
Ex-offcio Member, Audit Board, Bangalore
Place: Bangalore
Date: 28 August 2014
44
Accounts
ACCOUNTS
45
Balance Sheet
Balance Sheet as at 31st March, 2014

` in lakhs
Sl.No.
I
II
Particulars
Note No.
EQUITY AND LIABILITIES

i
Shareholders Funds
Share capital
Reserves and surplus
ii
Non-current liabilities
Long term Borrowings
Other long term liabilities
Long term provisions
iii
Current Liabilities
Short term borrowings
Trade payables
Other current liabilties
Short term provisions
TOTAL
ASSETS
i
Non-current assets
Fixed assets
Tangible assets
Intangible assets
Capital work-in-progress
Long term loans and advances
Other non-current assets
ii
Current assets
Inventories
Trade receivables
Cash and Bank balances
Short term loans and advances
Other current assets
1
2
3
30,199.22
(1,07,116.45)
37,221.25
1,571.78
11,974.48
37,221.25
1,190.75
12,429.63
9,608.18
20,242.42
85,729.31
15,702.31
1,00,511.53
10,360.33
19,276.92
89,060.38
19,096.93
1,11,718.96
7,384.13
3.61
697.37
418.34
7,413.14
7,596.31
1,155.74
380.57
8,221.95
13,608.59
17,888.34
40,406.94
2,774.39
9,916.68
13,569.38
23,015.32
47,184.48
4,668.58
5,926.63
1,00,511.53
1,11,718.96
17
For and on behalf of the Board of Directors
46
30,199.22
(1,11,737.42)
Significant Accounting Policies and other Notes to

Accounts forming part of Accounts
Notes 1 to 6 form an Integral Part of Balance Sheet
Sd/INAITULA BAIG
Company Secretary
Place : New Delhi
Date : 11 Jul 2014
As at
31-March-2013
TOTAL
Sd/Cmde KS SUBRAMANIAN, NM, IN (Retd)

As at
31-March-2014
Sd/R Adm N K MISHRA, NM, IN (Retd)

Sd/VRS NAGA SARMA
General Manager (Finance) &
Chief Financial Officer
As per our report of even date

For B.V. Rao & Co
Firm Reg. No.003118S
Sd/CA B. Vinay Kumar
(Partner)
M. No. 223723
Profit & Loss Statement
Profit and Loss Statement for the year ended 31 March, 2014
` in lakhs
Sl.No.
III
Particulars
Note No.
45,339.99
48,384.17
Less: Taxes & Duties
(2,295.14)
(2,080.68)
Net turnover
43,044.85
46,303.49
6,566.65
7,866.33
49,611.50
54,169.82
Other Income
Total Income
EXPENSES
Materials consumed
18,605.01
23,838.90
Sub-contracting and Other Direct Expenses
10
9,954.61
7,691.31
Employee benefits
11
18,789.59
18,306.66
Other expenses
12
2,740.45
2,642.41
Interest & Finance costs
13
925.52
1,777.08
Depreciation
752.52
788.77
Provisions and losses
14
1,913.06
4,067.13
Prior period expenditure (net)
15
812.82
841.05
(289.85)
(266.10)
Total expenditure
54,203.73
59,687.21
Profit before exceptional & extraordinary items

and tax (III-IV)
(4,592.23)
(5,517.39)
(28.74)
(4,620.97)
(5,517.39)
(4,620.97)
(5,517.39)
(4,620.97)
(5,517.39)
(153)
(183)
Transfers
Year ended
31-March-2013
INCOME
Turnover (Revenue from Operations)
IV
Year ended
31-March-2014
VI
Exceptional items - income / (expenditure)
VII
Profit before extraordinary items and tax (V-VI)
VIII
Extraordinary items
IX
Profit before tax (VII-VIII)
Taxes
XI
Profit / (Loss) for the period (IX+X)
XII
Earnings per equity share (Basic)
16
Notes 7 to 16 form an Integral Part of Profit and Loss statement

Sd/INAITULA BAIG
Company Secretary
Date : New Delhi
Place : 11 Jul 2014

Sd/VRS NAGA SARMA

For B.V. Rao & Co
(Partner)
M. No. 223723
47
Notes
NOTES FORMING PART OF THE BALANCE SHEET AS AT 31 MARCH, 2014

` in lakhs
I
EQUITY AND LIABILITIES

Note - 1
As at
31-March-2014
As at
31-March-2013
SHARE CAPITAL
Authorised
30,40,000 - Equity Shares of ` 1000 each
(Previous year 30,40,000- Equity Shares of ` 1000 each)
30,400.00
30,400.00
Issued, Subscribed and fully paid-Up

30,19,922 Equity Shares of ` 1,000 each fully paid-up
(Previous year 30,19,922- Equity Shares of ` 1000 each)
30,199.22
30,199.22
Total - Note : 1
30,199.22
30,199.22
Notes: Subscribed and paid-up share capital includes :

Equity shareholder holding more than 5% of equity shares along with the number of equity shares held is as given below:
Name of the shareholder
President of India (100%)

Note - 2
As at
31-March-2014
As at
31-March-2013
Number of shares
Number of shares
30,19,922
30,19,922
As at
31-March-2014
As at
31-March-2013
RESERVES AND SURPLUS

Capital Reserve
Balance in Capital reserve
9.50
9.50
Deficit
Opening Balance
Add: Net Profit / (Loss) for the current period
Closing Balance
Total - Note : 2
48
(1,07,125.95)
(1,01,608.56)
(4,620.97)
(5,517.39)
(1,11,746.92)
(1,07,125.95)
(1,11,737.42)
(1,07,116.45)
Notes
` in lakhs
Note - 3
As at
31-March-2014
As at
31-March-2013
NON-CURRENT LIABILITIES
Long term borrowings
Unsecured
GoI Loan in perpetuity
37,221.25
37,221.25
37,221.25
37,221.25
Other long term liabilities

Deposits
50.95
10.71
Advances from customers
721.12
380.33
Trade payables (OPF) (Refer Sub-note : 1)
163.72
163.72
Other liabilities (Refer Sub-note : 2)
635.99
635.99
1,571.78
1,190.75
Gratuity (Refer Sub-note : 3)
8,175.03
9,175.55
Leave salary (Refer Sub-note : 4)
3,799.45
3,254.08
11,974.48
12,429.63
50,767.51
50,841.63

Provision for employee benefits
Total - Note : 3
Sub-Notes:
1
This amount excludes Rs. 5139.33 lakhs pertains to claim of Essar Oil Ltd towards Off shore platform works and
similar amount to be received from ONGC is also excluded from Accrued income.
Represents interest accrued on ONGC loan and is payable on finalisation of arbitration.
Provision for gratuity excludes deposits amounting Rs. 1106.65 lakhs held with gratuity trust.
Leave salary of the company is non funded.
49
Notes
` in lakhs
Note - 4
As at
31-March-2014
As at
31-March-2013
CURRENT LIABILITIES
Short-term borrowings
Secured loans
Cash credit accounts in Indian Bank (Refer Sub-note : 1)
9,608.18
10,360.33
20,242.42
19,276.92
Advances from customers
27,599.46
34,400.51
Advance from GoI for RRMI (Refer Sub-note:2)
48,855.34
46,707.99
9,022.37
7,671.43
252.14
280.45
85,729.31
89,060.38
3,009.49
2,961.00
683.05
822.50
4,601.33
7,720.91
159.75
135.76
6,488.69
6,555.29
760.00
901.47
15,702.31
19,096.93
1,31,282.22
1,37,794.56
Trade payables
Other Current Liabilities
Other liabilities (Refer Sub-note : 3)

Deposits

Provision for employee benefits
Gratuity
Leave salary
Other provisions
Liquidated damages (Refer Sub-note : 4)
Provision for contingencies
Provision for future losses (Refer Sub-note : 5)
Guarantee Repairs
Total - Note : 4
Sub-notes:
1
Cash credit facility from Indian Bank is secured by hypothecation of Fixed and Current Assets of the company.
Includes interest Rs.4427 lakhs earned on RRMI funds. Assets procured under this package worth Rs. 1307 lakhs is
deducted from the advance.
Out of the said amount Rs. 5314 lakhs payable towards wage revision arrears.
Out of the said amount Rs.799.76 lakhs towards 2 No 50 Ton Tugs (VPT), Rs.706.81 lakhs for 3 Nos.50T IN Tugs, Rs.911.95
lakhs towards 2 Nos. KPT Tugs and Rs.470 lacs towards 25T IN Tugs.
Provision for future losses computed as per AS-7 Construction Contracts issued by ICAI in respect of Ships under
construction.
50
Notes
` in lakhs
II
ASSETS
Note - 5
1)
As at
31-March-2014
As at
31-March-2013
NON-CURRENT ASSETS
Fixed Assets :
Gross Block (Tangible)
24,376.70
23,842.57
Depreciation
16,992.57
16,246.26
7,384.13
7,596.31
Gross Block (Intangible)
146.38
139.82
Depreciation
142.77
139.82
3.61
697.37
1,155.74
8,085.11
8,752.05
3,678.83
3,409.96
(3,009.44)
(2,740.57)
314.83
418.34
380.57
1,831.13
2,329.45
99.08
94.74
4,510.60
4,510.60
156.02
156.02
7,015.17
7,786.21
146.92
146.92
15,916.59
17,354.57
Net Block- Tangible
Net Block- Intangible

Capital Works in Progress (Refer sub-note:1)
Trade recievables (Refer sub-note:2)

Less: Provision for bad debts
Long term Loans and Advances (unsecured)
Capital Advances
Deposits with Customs, Port Trust and other Govt. Agencies
Income Tax deducted at source
Advance tax (net of provision for Rs.4482.60 lakhs)
MAT Credit entitlement (Refer sub-note:3)
Others
Other Current Assets

Accrued Income (OPF) (Net of Rs.5139.33 lakhs payable to Essar Oil)
Total - Note : 5
Sub-notes:
1)
Includes capital items of Rs.334.42 lakhs procured in 2009-10, Rs.53.97 lakhs which were procured in 2011-12 are
retained under this head in view of the fact that the specifications / commissioning as mentioned in the PO are not
adhered to and the matters are under active follow-up with the vendors.
2)
Trade receivables include an amount of Rs.669.39 lakhs receivable from ONGC pending settlement of arbitration issues.
3)
Includes Rs.28 lakhs paid in 2007-08 eligible for carry forward up to 2014-15 and Rs.4482.60 lakhs paid in 2010-11
eligible for carry forward upto 2020-21.
51
52
1284.02
23.54
588.52
167.17
3132.33
271.95
5.35
1585.80
21.44
8781.99
346.91
397.49
282.71
82.69
34.33
45.89
501.68
0.00
1307.56
139.82
139.82
6.56
0.00
24523.08 16386.07
23982.39 15568.77
627.81
169.56
4219.90
317.43
Note : 1. Depreciation for the year includes prior period amount of Rs. 1.64 lakhs
0.00
5.08
0.00
6.56
545.76
875.35
501.50
627.81
169.56
3718.40
1.28
139.82
0.00
23982.39
23107.04
5.30
312.13
11.59
5.41
2775.19
28.02
13773.74
563.47
754.25
342.09
89.48
36.07
61.87
610.68
3.80
5.41
2758.18
28.02
13762.16
563.47
754.25
342.09
89.48
36.07
61.87
611.96
20.81
1.72
1
Tangible Assets
Land
Buildings:
a) On freehold land
b) On leasehold land
Railway sidings
Plant & Machinery
Slipways & Fitout warf
Drydock
Wet basin
Furniture
Boats & launches
Motor vehicles
Roads & Compound walls
Housing Estate, Hospital & Other equpt.
Electrification of Buildings
Elec. Installations
Berth for well platforms
Building dock
Intangible Assets
Tribon Software for shipbuilding
Pay roll software
Total
Previous year
RRMI Assets
(Funded by MoD, GoI)
Gross Block
Additions
Sales /AdAs on
Up to
during
justments 31.03.2014 31.03.2013
the year
during
the year
3
4
5
6
FIXED ASSETS
1.72
As on
31.03.2013
Particulars
Note - 5 (a)
0.00
2.95
754.16
817.30
3.34
0.00
133.81
5.26
0.01
48.40
5.26
518.51
6.87
17.64
5.58
1.47
0.00
2.15
2.91
0.00
4.89
0.00
1.28
3.61
139.82
2.95
17135.34
16386.07
591.86
167.17
3266.14
277.21
5.36
1630.59
26.70
9300.50
353.78
415.13
288.29
84.16
34.33
48.04
503.31
0.00
Depreciation
For the
On sales /
Up to
year
Adjustments 31.03.2014
for the year
1.72
0.00
3.61
7387.74
7596.32
35.95
2.39
953.76
40.22
0.05
1144.60
1.32
4473.25
209.69
339.12
53.80
5.32
1.74
13.83
107.37
10
0.00
0.00
7596.31
7538.26
39.29
2.39
586.07
40.18
0.06
1172.38
6.58
4980.15
216.56
356.76
59.38
6.79
1.74
15.98
110.28
1.72
11
Net block
As at
As at
31.03.2014 31.03.2013
` in lakhs
Notes
Notes
` in lakhs
Note - 6
As at
31-March-2014
CURRENT ASSETS
Inventories (Refer Sub-note: 1)
Steel
Stores & Spares , equipment and other Materials
Timber
Materials-in-Transit and under inspection
Steel Cut Pieces on shop floor and Scrap (Refer Sub-note: 2)
Less : Provision for : Obsolescence of materials
Difference between Bin cards & PSL balances
Trade receivables
Unsecured
Debts outstanding for more than 6 months:
Considered good
Considered doubtful
Other debts, considered good
Less: Provision for bad debts
Cash and Bank balances
Cash and Cash Equivalents
Cash in Hand
Balances with scheduled banks in:
Term and other Deposit accounts
Current accounts
Short term loans and Advances
Short term loan and advances
Employees
Suppliers of materials & services
Others
Prepaid Expenses
Less : Provision for Doubtful Advances
Other Current Assets
Interest Accrued on term deposits
Accrued Income (Refer Sub-note: 3)
Total - Note : 6
As at
31-March-2013
2,450.73
10,462.07
31.05
406.68
612.33
13,962.86
130.46
223.81
13,608.59
1,853.81
10,977.35
27.01
779.31
286.23
13,923.71
130.52
223.81
13,569.38
10,435.24
10,435.24
7,453.10
17,888.34
17,888.34
5,181.12
5,181.12
17,834.20
23,015.32
23,015.32
3.15
3.95
40,139.81
263.98
40,406.94
46,987.33
193.20
47,184.48
85.59
1,918.55
878.42
83.32
2,965.88
191.49
2,774.39
78.98
3,718.76
884.36
77.49
4,759.59
91.01
4,668.58
1,261.95
8,654.73
9,916.68
1,042.10
4,884.53
5,926.63
84,594.94
94,364.39
Sub-notes:
1
Inventories are as valued and certified by the management.
2
Quantity of steel cut pieces on shop floor and Scrap is based on technical estimate.
3
Accrued Income is in respect of Ship Building, Ship Repairs & Sale of scrap and it includes income for the previous
financial years amounting Rs.138 lakhs (Ship Building: Rs. 66 lakhs and others Rs.72 lakhs).
53
Notes
NOTES FORMING PART OF THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 MARCH, 2014
` in lakhs
Note - 7
Year ended
31- March-2014
Year ended
31- March-2013
Turnover (Revenue from Operations)

Sale of products - (Refer Sub-note: 1)
Shipbuilding - Contractual Income
- Government subsidy (Refer Sub-note: 2)
23,354.79
558.54
17,311.20
2,155.09
Sale of services Repair works

Dry dock hire charges
Wet basin hire charges
DDSR Other services
Submarine Retrofit (Refer Sub-note:3)
5,808.98
203.30
261.45
542.39
14,556.26
13,861.51
307.43
196.94
931.54
13,478.52
54.28
141.94
45,339.99
48,384.17
Other operating revenue

Sale of scrap, stores & disposable materials
(Net of VAT: Rs.7.87 lacs)
Total - Note : 7
Sub-notes:
1
2
3
Income from ship building is recognised as per AS-7 Construction Contracts issued by ICAI.
Company is eligible for subsidy @30% on 53K Bulkers under construction for GML.
With regard to accountal of income from submarine retrofit services, the company has been consistently following
AS-9 for the last several years in view of the nature of the activity as well as compliance of the conditions stipulated in
AS-9. However, in the year 2012-13, the Statutory Auditors are of different view that AS-7 is applicable in this regard. In
order to attain finality, the company, referred the above issue to the Expert Advisory Committee of Institute of Chartered
Accountants of India for their opinion. The said opinion is yet to be received.
Note - 8
Year ended
31- March-2014
Year ended
31- March-2013
(a) Other Income

Interest from banks & others
Rs. 3598.77 lakhs
Less: Interest payable to GoI (RRMI & VC 11184)
Rs. 3457.58 lakhs
Foreign Exchange variation
Rent (Net of Service Tax) (Refer Sub-note No: 1)
Fines and forfeitures
Miscellaneous Receipts
Provision for Future losses on shipbuilding written back
Profit on sale of Assets
Provisions of earlier years no longer required
141.19
179.35
112.69
63.37
825.65
1.41
5,242.99
4,606.77
(971.98)
331.42
90.66
230.17
186.45
2,980.09
412.75
Total - Note : 8
6,566.65
7,866.33
Sub-notes:
1
Rent excludes service tax amounting Rs. 25.54 lakhs.
54
Notes
` in lakhs
Note - 9
Year ended
31- March-2014
Year ended
31- March-2013
Materials Consumed
Steel
Stores & Spares
Timber
Direct Materials, Machinery & Equipment used in
Ship Construction
Shiprepair
Submarine Retrofit
11,157.38
622.71
2,140.10
13,335.64
3,101.02
5,734.65
Add: Stores procurement expenses
18,293.70
311.31
23,721.42
117.48
Total - Note : 9
18,605.01
23,838.90
Note - 10
2,153.41
2,205.85
14.25
Year ended
31- March-2014
537.82
1,009.14
3.15
Year ended
31- March-2013
Sub-contracting & Other Direct Expenses

Sub contract & off-loaded job expenses in :
2,568.17
1,280.51
Ship Repairs
584.43
2,001.19
Submarine Retrofit
246.97
652.35
1,108.34
722.83
13.47
718.52
5,180.03
2,095.86
253.20
220.05
9,954.61
7,691.31
Ship Construction
Other Direct Expenses in :

Ship Construction (Refer Sub-note-1)
Ship Repairs
Submarine Retrofit
Builders Risk Insurance in Ship Constuction
Total - Note : 10
Sub-notes: 1. Other Direct Expenses in Ship Construction includes Rs.390 lakhs provision for Guarantee Repairs.
55
Notes
` in lakhs
Note - 11
Year ended
31- March-2014
Year ended
31- March-2013
Employee Benefits
Salaries, Wages, Allowances etc.,
12,890.99
13,446.47
Contribution to Provident Fund and other funds
1,295.08
1,318.33
Gratuity
2,406.00
2,294.60
Leave salary
1,462.36
689.61
49.87
74.18
685.29
483.47
18,789.59
18,306.66
Expenses on Training, Stipend etc.

Employees Welfare Expenses
Total - Note : 11
Note - 12
Other expenses
Power and Fuel (net of recoveries)
Water Charges (net of recoveries)
Rates and taxes (including customs duty on scrap sales)
Fire and Other Insurance
Rent (Sub-note 1)
Repairs and Maintenance to :
Plant and Machinery
Buildings
Other Assets
Printing and Stationery
Local conveyance charges
Travelling Expenses
Communication expenses
Advertisement and Publicity
Salaries and other Expenses of Customs Staff
Demurrage Charges
Directors Fees and Expenses:
Directors Fees
Travelling Expenses
Auditors Remuneration :
Statutory Audit
Expenses
Foreign exchange variation
Miscellaneous Expenses
Total - Note : 12
Year ended
31- March-2014
Year ended
31- March-2013
785.87
122.10
48.61
111.89
168.75
651.78
96.89
100.19
251.61
153.22
597.11
250.56
48.00
7.14
229.27
60.16
4.07
26.91
36.60
14.90
506.85
138.54
55.82
8.57
181.85
47.85
3.91
13.47
52.38
13.93
1.67
23.18
0.45
38.17
1.80
0.34
96.95
104.57
1.69
0.35
324.89
2,740.45
2,642.41
Sub-notes :
1)
Rent includes an amount of Rs. 152.67 lakhs on lease-hold lands (259.89 acres from VPT).
56
Notes
` in lakhs
Note - 13
Year ended
31- March-2014
Year ended
31- March-2013
Interest & Finance Charges

Interest on :
Bank term loans & Cash Credit
Others
Bank Charges
782.71
67.16
75.65
1,285.15
367.35
124.58
Total - Note : 13
925.52
1,777.08
Note - 14
Provisions and Losses
Provisions made:
Obsolescence of Materials
Reduction in SR Bills
Liquidated Damages
Contingencies
Doubtful Debts /Advances
Losses :
Reduction in Shipbuilding inventory
Total - Note : 14
Note - 15
Prior Period Adjustments
A
Income
SR Income
EKM Insurance refund
Miscellaneous
B
Year ended
31- March-2014
Year ended
31- March-2013
1.64
398.02
411.03
159.75
100.48
78.83
660.00
2,165.05
38.79
365.41
842.14
759.05
1,913.06
4,067.13
Year ended
31- March-2014
Year ended
31- March-2013
31.46
24.65
-
2.86
56.11
2.86
Expenditure
SC Direct Expenses
SC Insurance expenses
Berth hire charges
Materials, Freight, C & F charges
Taxes & Duties
Rent
Depreciation
EKM FE Variation
Miscellaneous
26.98
53.25
80.00
1.64
576.81
130.25
6.54
17.76
762.18
1.72
0.07
28.52
27.12
Net Expenditure / (Income)
868.93
812.82
843.91
841.05
Note - 16
Year ended
31- March-2014
Year ended
31- March-2013
Exceptional items (Expenditure)

Arbitration award
28.74
Total - Note : 16
28.74
57
Notes
Note 17
Notes Forming Part of the Accounts for the year ended 31st March 2014
A.
ACCOUNTING POLICIES
1.
ACCOUNTING CONVENTIONS:
The financial statements are prepared under the historical cost conventions in accordance with Generally
Accepted Accounting Principles in India and provisions of the Companies Act, 1956. Generally, revenues are
recognized on accrual basis with provisions made for known losses and expenses.
2.
ASSETS:
(a)
Fixed assets:
Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive
of freight, duties, taxes, incidental expenses relating to cost of acquisition (net of VAT), interest during
construction period and the cost of installation/erection as applicable.
(b)
Intangible assets :
Expenditure incurred on software will be capitalized under intangible assets and shall include expenditure on
procurement of software, acquisition / development of software and up-gradation / enhancement of existing
software resulting in enhancement of economic benefits.
However all embedded software without separate value and included in hardware is capitalized along with
cost of hardware.
Fixed assets, Capital work-in-progress and capital advances are segregated as non-current assets.
3.
4.
INVENTORIES:
i)
Steel, Timber, Spares and other stores are valued at Weighted Average Cost or net realizable value
whichever is lower. Obsolescence is provided for on the basis of technical estimate.
ii)
Direct Materials and Stores items in offshore platform activities are valued at cost or net realizable
value whichever is lower under specific identification and FIFO respectively.
iii)
Cost includes expenses of procurement including all taxes and duties other than VAT.
iv)
Scrap is valued at estimated realisable value.
INCOME:
Income is recognized in accounts:
A.
i)
In respect of ships under construction, on the basis of percentage completion method, taking
into account the proportion that the contract cost incurred for work performed upto the reporting
date bears to the estimated total contract cost for completion.
Cost for the above purpose includes value of direct materials including Machinery and other
ship borne equipment issued for specific ship, direct labour, direct expenses and general overheads
excluding administrative overheads and overheads attributable to idle time.
58
ii)
In respect of ships delivered during the year at the balance price including claims for extra works
and cost escalation realisable from owners.
iii)
For the purpose of recognition of profit, weightage shall be given to the following three factors,
which shall reach a minimum of 20% individually.
a.
The proportion that cost incurred to date bears to the estimated total cost of the contract,
b.
Stage completion and
c.
Revenue received.
Notes
5.
B.
Income from other activities including ship repair and submarine refit activities is accounted for on
accrual basis by adopting proportionate completion method.
C.
Income is inclusive of Excise Duty, Sales Tax and Service Tax and is net of Rebates and other Deductions
under the respective contracts.
D.
Claims in respect of Insurance are accounted for on acceptance basis taking into account the acceptances
received within 15 days of the end of the financial year.
E.
The income in respect of all the activities is captioned as Turnover.
GOVERNMENT GRANTS:
i)
Capital grants / subsidy:

Capital grants / subsidy relating to specific assets are reduced from the gross values of assets and
capital grants for project capital subsidy are credited to capital reserve and retained till the requisite
conditions are fulfilled.
6.
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.
EXCISE DUTY:
Excise Duty wherever applicable is accounted for as and when the products are cleared from the yard.
7.
DEPRECIATION:
Depreciation is provided for under straight-line method in accordance with schedule XIV of the Companies
Act, 1956 as amended, in respect of assets capitalised on or after 01-04-1988. In respect of assets capitalised
prior to 01-04-1988 depreciation is provided under straight-line method at the rates worked out adopting
the managements estimates of useful lives of the respective assets as under:
Name of the Asset
Life
1. Buildings
a. Class I Factory Buildings
33 years
b. Class II Factory Buildings
20 years
c. Class I Non-Factory buildings
58 years
2. Plant and Machinery
19 years
3. Furniture and Fixtures
29 years
4. Motor Vehicles
7 years
5. Dry Dock/Wet Dock and Slipways
50 years
6. Boats and Launches
20 years
Depreciation on additions/disposals made during the year is charged prorata by grouping them on quarterly
basis.
Intangible assets will be amortized over a period of 5 years.
59
Notes
8.
9.
BORROWING COSTS:
a)
Borrowing Costs relating to the acquisition/construction of qualifying assets are capitalised until the
time all the substantial activities necessary to prepare the qualifying assets for their intended use are
complete.
b)
A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended
use.
c)
All other borrowing costs are charged to revenue.
EMPLOYEE BENEFITS:
(i)
Defined Contribution Plan
Employee Benefits in the form of Employee Pension Fund is considered as Defined Contribution plan and the
contributions are charged to the Profit & Loss Account of the year when the contributions to the said fund
are due.
(ii)
Defined Benefit Plan
Retirement Benefit in the form of Gratuity, is considered as Defined Benefit Obligation and is provided for on
the basis of an actuarial valuation using the projected unit credit method as at the date of Balance Sheet.
Employee Benefit in the form of Employee Provident Fund is considered as Defined Benefit plan and the
contributions are charged to the Profit & Loss Account of the year when the contributions to the said fund
are due.
(iii)
Other Long Term Benefits
Long-Term Compensated Absences are provided on the basis of an actuarial valuation using the Projected
Unit Credit Method as at the date of Balance Sheet.
Actuarial gain/losses, if any, are immediately recognized in the Profit & Loss Account.
10.
EMPLOYEE SEPARATION COSTS:

Compensation to Employees who have opted for Retirement under the Voluntary Retirement Scheme of the
Company is charged to the Profit and Loss account in the year of exercise of option, net of grant in aid
received / receivable in the year of payment.
11.
PROVISION FOR FUTURE LOSSES:

In the case of Ship Building activities where current estimates of total contract cost exceeds the expected
realisable value, provision is fully made for such anticipated loss in accordance with AS 7 issued by the Institute
of Chartered Accountants of India.
12.
PROVISION FOR SUNDRY DEBTORS:

Provision is made for all debts considered doubtful of recovery having regard to the following consideration
13.
a)
Time barred debts from the Government / Government departments / Government companies are
generally not treated as doubtful debts.
b)
Provision for bad and doubtful debts is generally made for debts outstanding for more than three
years, excepting those which are considered realizable based on a case to case basis.
FOREIGN EXCHANGE TRANSACTIONS:

Assets and liabilities in foreign currencies are translated at rates of exchange prevailing as on the Balance
Sheet date. Gains/losses arising out of fluctuations in exchange rates both on settlement and on conversion
of liabilities are adjusted to revenue.
60
Notes
14.
15.
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.
CAPITAL EXPENDITURE FUNDED THROUGH NAVAL SHIP PROJECTS:

The Capital Expenditure funded through Naval Ship Projects is netted-off from the corresponding fixed assets.
The net amount so arrived at is shown as the carrying amount of such fixed assets.
Any remaining balance(s) excess/shortfall is shown as non-current asset/liability as the case may be.
16.
MISCELLANEOUS:
(i)
Loose tools:
Loose tools are charged to revenue on issue of the same from stores
(ii)
Liquidated damages:
Provision for liquidated damages is made in the accounts as per the contractual provision / proportionate
liability basis keeping in view the delay caused by the factors beyond the control of company.
(iii)
Guarantee repairs:
Provision for liability for guarantee repairs made in the accounts at the time of delivery on the basis of
estimation.
(iv)
DISCLOSURE OF EXPENDITURE:
All items of expenditure are stated under nominal heads at gross figures and the aggregate amount
allocated/transferred to other heads on functional basis is shown separately except direct labour.
61
Notes
B. NOTES ON ACCOUNTS
(` in lakhs)
2013-14
2012-13
5248.56
3680.31
1.
Contingent liabilities
1.1
Irrevocable letters of credit outstanding
1.2
Counter guarantees given to banks for guarantees issued on behalf of

the company
17111.23
18804.67
Estimated amount of contracts remaining to be executed on capital

account and not provided for
1.3
1.4
Demands raised against the company by various authorities, contested

at various courts, appellate authorities etc and not provided for:
1.4.1
Property tax on commercial complex for the years from 1984-85 to

1994-95.
13.39
13.39
Penal interest on belated remittances of Provident Fund contributions

during the period from May 2002 to Feb., 2005, contested u/s 7(i) of
EPF & MP Act, 1952. HSL had approached Honble High Court of Andhra
Pradesh after dismissal of appeal by PF Appellate Tribunal. The Honble
High Court has issued stay orders on PF Appellate Tribunal order subject
deposit of a sum of `35.00 lakhs by the company. Accordingly, HSL
had deposited the said amount. Presently, the case is pending in Honble
High Court of Andhra Pradesh.
109.78
109.78
(a) ESI dues in respect of C series workmen for the period from
1-4-1998 to 30-9-2000 together with interest thereon (`6.64 lakhs paid
under protest grouped under deposit recoverable)
83.29
78.58
(b) ESI dues in respect of temporary workmen for the period from April,
1998 to Oct., 1999, contractors contribution for the period from Apr.,
1985 to March, 1993.
180.24
180.24
2081.31
2081.31
367.70
367.70
1.4.2
1.4.3
1.4.4
Service tax demand in respect of INS Sindhukeerthi
1.4.5
Service tax demand in respect of Ship Repairs
1.4.6
VAT demands in respect of Ship Repairs
2552.00
2644.78
1.4.7
Demands of various suppliers of goods and services
1.4.8
Non Agricultural Land Assessment tax demands for the year 2000-01
1875.81
4.54
898.61
4.54
1.4.9
Demands in respect of service matters of employees having financial

impact.
1397.86
8665.92
1379.31
7758.24
8638.00
8638.00
13441.80
11878.52
Total [1.4]
1.5
Claims against the company, which are under arbitration and not
provided for:
1.5.1
Counter Claims of ONGC towards liquidated damages, penal interest

and interest on interest in respect of construction of well platforms
(net of provision).
1.5.2
Claims of Essar Oil Limited (EOL) towards OPF works (net of provision
made of `5139.00 lakhs).
62
Notes
1.5.3
a) On rejection of claims towards L.D. and other claims by HSL,

M/s Good Earth Maritime Ltd., (G.M.L.) invoked arbitration clause for
the vessel No. VC 11115, VC 11116 , VC 11117 and VC-11136 and the
same is under arbitration.
b) In respect of Vessel No. VC 11118, VC 11137 to VC 11139 which
were delivered and VC 11140 which is under construction, no provision
towards LD is made, since the same is not applicable as per Contracts.
Total (1.5)
2013-14
2012-13
19932.74
13288.00
42012.57
33804.52
In respect of items mentioned under 1.4 and 1.5 above, the Company has been advised by the Counsel that
said demands and claims are not sustainable in law.
2.
As per Accounting Standard 15 Employees Benefits, the disclosure of Employee Benefits as defined
in the Accounts Standard are given below:
Defined Contribution Plan
Contribution to Defined Contribution plan, recognized as expense for the year are as under:
(` in lakhs)
2013-14
2012-13
Employers Contribution to Pension Fund
132.88
149.04
Defined Benefit Plan
The employees gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation
is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of
service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build
up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.
I.
Reconciliation of opening and closing balances of Defined Benefit obligation

( in Lakhs)
Details
Defined Benefit obligation at beginning of the year. ( Current Year)

(Previous year)
Interest Cost (Current Year)
(Previous year)
Current Service Costs (Current Year)
(Previous year)
Benefits Paid (Current Year)
(Previous year)
Actuarial loss/(gain) on obligation (Current Year)
(Previous year)
Defined Benefit obligation at year end (Current Year)
(Previous year)
Gratuity
(Funded)
Earned Leave
Encashment
(Unfunded)
Sick Leave
(Unfunded)
13146.87
3321.52
755.06
13153.12
3431.04
780.70
905.96
220.67
1016.52
257.68
210.22
226.61
28.88
281.49
384.61
(25.64)
(3358.04)
(1056.44)
(2388.00)
(799.12)
1386.16
986.20
1083.74
47.31
12291.17
3698.56
783.94
13146.87
3321.52
755.06
63
Notes
II.
Reconciliation of opening and closing balances of fair value of plan assets

(` in lakhs)
Details
2013-14
2012-13
1010.31
923.17
94.97
83.08
Contribution
3358.04
2388.00
Benefits paid
(3358.04)
(2388.00)
Actuarial (loss)/gain on obligation (balancing figure)
1.37
4.06
Fair value of Plan Assets as at the end of the period
1106.65
1010.31
Fair value of plan assets at beginning of the period.

Expected return on plan assets
III.
Reconciliation of fair value of assets and obligations as at 31/03/2014

(` in lakhs)
Gratuity
Fair value of plan assets (Current Year)

(Previous year)
Present value of obligation(Current Year)
(Previous year)
Amount recognized in Balance Sheet(Current Year)
(Previous year)
IV.
Leave
Encashment
(Unfunded)
Sick Leave
(Unfunded)
1106.65
1010.31
12291.17
3698.56
783.94
13146.86
3321.52
755.06
11184.52
3698.56
783.94
12136.55
3321.52
755.06
Expenses recognized during the year (in the statement of Profit & Loss Account)
(` in lakhs)
Description
Current Service Cost (Current Year)

(Previous year)
Interest Cost (Current Year)
(Previous year)
Expected return on plan assets (Current Year)
(Previous year)
Actuarial (gain)/loss (Current Year)
(Previous year)
Expenses recognized in the statement of P&L a/c (Current Year)
(Previous year)
64
Gratuity
(Funded)
Leave
Encashment
(unfunded)
Sick
Leave
(Unfunded)
210.22
226.61
281.49
384.61
(25.64)
905.96
220.67
1016.52
257.67
(94.97)
(83.08)
1384.80
986.20
1079.68
47.31
2406.01
1433.48
28.88
2294.61
689.59
(25.64)
Notes
V.
Investment Details
(Percentage invested)
Description
Gratuity as on
31.03.14
Gratuity as on
31.03.13
Special Deposit Scheme
12.00
13.00
Others (T.D.R.s)
88.00
87.00
Total :
100.00
100.00
GoI Securities
VI.
Principal Actuarial Assumptions

Gratuity (Funded)(%)
Leave Encashment (Unfunded)(%)
31.03.2014
31.03.2013
31.03.2014
31.03.2013
Discount Rate
9.00
7.90
9.00
7.90
Salary escalation rate
7.00
3.00
7.00
3.00
Attrition rate
1.00
1.00
1.00
1.00
Expected rate of return on plan assets
9.50
9.40
Salary escalation by taking into account inflation, seniority, promotion and other factors. Attrition rate by
reference to past experience and expected future experience and includes all types of withdrawals other
than death but including those due to disability.
Discount rate has been determined by reference to market yields on the Balance Sheet date on Govt.
Bonds of Term consistent with estimated term of the obligations.
As per the enterprises accounting policy actuarial gains and losses are recognized immediately during the
same year itself.
The fact that Provident Fund element is also to be included while computing relevant salary for encashment
of leave has been taken into account.
The above information is certified by the Actuary.
(
Employers Contribution to Provident Fund
in lakhs)
2013-14
2012-13
1162.20
1169.29
The Companys Provident Fund is exempted under Section 17 of Employees Provident Fund Act, 1952.
The conditions for grant of exemption stipulate the employer shall make good deficiency, if any, in the
interest rate declared by the Trust vis--vis statutory rate. The Guidance issued by the Accounting Standard
Board (ASB) on implementing AS-15. Employee Benefits (revised 2005) states that Provident Funds set up
by employers, which requires interest shortfall to be met by the Employer needs to be treated as Defined
Benefit Plan. The fund does not have any deficit or interest shortfall. In regard to any future obligation
arising due to interest shortfall (i.e., Government interest to be paid on Provident Fund Scheme exceeds
rate of interest earned on Investments) pending the issuance of guidance note from the Actuarial Society
of India, the Companys Actuary has expressed his inability to reliably measure the same.
65
Notes
3.
SEGMENT REPORT
The company operates in Shipbuilding, Ship repair and Sub-marine Retrofit business segments. Information in respect
of the said segments as required by AS 17, issued by Institute of Chartered Accountants of India, is given here under
` in lakhs
Particulars
Ship
building
Ship
repairs
Retrofit
Un-allocated
Segment Income:
Sales
Taxes collected
Other operating income (scrap sales)
22,394.61
1,518.72
-
6,786.75
29.37
54.28
14,556.26
-
43,737.62
1,548.09
54.28
Other Income
23,913.33
1,120.58
6,870.40
4,840.11
14,556.26
220.64
385.32
45,339.99
6,566.65
Total Income
25,033.91
11,710.51
14,776.90
385.32
51,906.64
Segment Expenditure:
Materials (net of transfers)
Direct Expenses
Direct Labour
Service Tax, Sales Tax & Excise Duty
15,385.35
3,971.94
3,581.88
1,685.73
694.57
615.84
320.20
547.14
2,273.68
5,366.83
980.86
62.27
18,353.60
9,954.61
4,882.94
2,295.14
Total Segment expenditure
24,624.90
2,177.75
8,683.64
35,486.29
409.01
8,375.36
1,618.87
-
9,532.75
2,308.23
458.09
-
6,093.26
2,664.52
552.16
-
385.32
4,938.59
96.76
28.74
16,420.35
18,286.70
2,725.88
28.74
(9,585.22)
6,766.44
2,876.58
(4,678.77)
(4,620.97)
(4,678.77)
(4,620.97)
Segment Result
Overheads
Provisions and Adjustments
Extraordinary & Exceptional items
Net Segment Result
Taxes
Total Result
(9,585.22)
6,766.44
Other information
Segment Assets
Segment Liabilities
Capital Expenditure
Depreciation
Non-cash expenditure other than Dep.
22,003.09
52,889.06
558.91
-
16,573.06
24,807.58
39.70
-
66
2,876.58
Total
8,863.36
53,072.02 1,00,511.53
22,562.00 1,11,999.81 2,12,258.45
545.76
545.76
153.91
752.52
-
Notes
Information in respect of related parties in terms of AS 18, issued by

the Institute of Chartered Accountants of India are:
a) Related parties:
Key Management Personnel:
i) RAdm NK Mishra, NM, IN (Retd), Chairman & Managing Director.
ii) Shri. Rakesh Mahajan, Director (Finance & Commercial) up to 10
Oct 2013.
iii) Cmde KS Subramanian, NM, IN (Retd), Director (Shipbuilding).
iv) Cmde KLN Prasad, IN (Retd), Director (Corporate Planning &
Personnel).
v) Cmde Ashok Bhal, IN (Retd), Director (Strategic Projects)
b) Details of transactions carried out with the above stated related
parties:
Remuneration paid during the year (` In lakhs)
a) Net profit/(Loss) as per profit and loss account (` In lakhs)

b) Weighted average number of equity shares used as Denominator
for calculating EPS
c) Earnings per share: Profit/(Loss) Basic `
2012-13
89.69
(4620.97)
3019922
87.27
(5517.39)
3019922
(153)
(182)
--
--
193350
234339
5.93
--
As per technical evaluation, there is no impairment in the carrying cost

of cash generating units of the company in terms of Accounting Standard
(AS 28), issued by the Institute of Chartered Accountants of India.
The estimated cost of completion of vessels under construction has

been revised to ` 193350 lakhs as at 31.3.2014 from ` 234339 lakhs as
at 31.3.2013
Provision towards interest on account of delays in making payments to

MSME units (23 nos.)
Materials Consumed
9.
2013-14
Description
Unit
2013-14
Qty
2012-13
Value
` in lakhs
Qty
Value
` in lakhs
Steel
M.T
4465.74
2153.41
1316
537.82
Pipes
Meters
9737.30
133.31
3842
19.99
Paints
Litres
55784
120.79
122720
286.58
Nos.
16222
276.95
8024
83.28
Pipe Fittings
Ship Machinery and Equipt.
Ship Repair Materials
Retrofit Materials
Others
Total
11855.57
13335.64
657.20
3101.02
2140.05
5734.65
956.42
622.44
18293.70
23721.42
67
Notes
Break up of Materials Consumed:

` in lakhs
2013-14
i)
Value of all Imported Materials including components and spare

parts consumed during the year.
ii)
Value of all Indigenous Materials including components and spare

parts consumed during the year.
2012-13
12310.13
20776.78
5983.57
2944.64
iii)
Percentage of item (i) to total consumption.
67%
88%
iv)
Percentage of item(ii) to total consumption .
33%
12%
10.
Expenditure and Earnings in Foreign Currency

` In lakhs
1.1
2013-14
2012-13
i) Royalty, Know-how and Professional Consultancy fees
ii) Travelling Expenses
473.05
79.64
12444.34
10350.44
147.03
50.69
iii) Others
1.2
CIF value of imported materials, components & spare parts and

capital goods.
Earnings in Foreign Currency from ship repair activity
11. As per AS29 relating to Provisions the movement of provisions in the books of account is as follows:
` In lakhs
Nature of provision
Provision for Gratuity

(Previous Year)
Provision for Leave Salary
(Previous Year)
Provision for Liquidated Damages
(Previous Year)
Provision for Contingencies
(Previous Year)
Provision for Future Losses
(Previous Year)
Provision for Guarantee Charges
(Previous Year)
Provision for Doubtful Debts / Reductions in SR bills
(Previous Year)
Provision for Doubtful Advances
(Previous Year)
68
Opening
Balance
12137
(12230)
4077
(4212)
7721
(5556)
136
(97)
6555
(8382)
901
(1180)
2741
(1722)
91
(98)
Provision
Utilisation
made during / Reversal
the year
during the
year
2406
(2295)
1463
(690)
411
(2165)
160
(39)
410
(20)
398
(1025)
100
-
3358
(2388)
1057
(825)
3531
136
66
(1827)
551
(299)
130
(6)
(7)
Closing
Balance
11185
(12137)
4483
(4077)
4601
(7721)
160
(136)
6489
(6555)
760
(901)
3009
(2741)
191
(91)
Notes
12.
Disclosure of information in respect of Ships under construction as per Accounting Standard-7 Construction
Contracts
In lakhs
Particulars / Nature of Vessel
IPVs
(ICG)
53K
BULKERS
Vessel No:
11156-58
11140
Owner
ICG
GEML
Contract Revenue Recognized

up to 31st March, 2014
10897
12829
Contract Expenses Recognized
18242
Recognized Profits / (Losses)
IPVs
(ICG)
11184
50T TUGS 25T TUGS 10T TUGS

(KPT)
(IN)
(IN)
11165-72 11173-74 11175-77 11177-82

ICG
KPT
NAVY
NAVY
5311
3227
286
20195
5311
3483
311
(7345)
(7366)
(256)
(25)
Expected Losses Recognized
(762)
(2116)
(2790)
(431)
(790)
(441)
Total Recognized Profits / Losses
(8107)
(9482)
(2790)
(687)
(815)
(441)
Advances Received
7859
12589
14503
9609
2736
1159
1252
Costs Relating to Future Activity
1977
5803
61380
49892
5866
10089
10790
Retention Amount
201
Progressive Billing
8060
12589
14503
9609
2736
1159
1252
Gross Amount due from Customers
3038
240
491
10
Gross Amount due to Customers
9192
9609
873
1252
13.
Details of Remuneration to Chairman & Managing Director and other whole-time Directors:
(
in lakhs)
S.No
Particulars
i.
RAdm N.K.Mishra, NM, IN(Retd), Chairman & Managing Director
ii.
Shri. Rakesh Mahajan, Director (Finance & Commercial) (up to 10 Oct 2013)
iii.
Cmde K.S.Subramanian, NM, IN (Retd), Director (Shipbuilding)
18.15
iv.
Cmde K.L.N.Prasad, IN (Retd), Director (Corporate Planning & Personnel)
19.66
v.
Cmde Ashok Bhal, IN (Retd), Director (Strategic Projects)
19.01
Total
89.69
2013-14
22.97
9.90
69
Notes
14
(a)
GoI sanctioned an amount of Rs 457.36 Cr in Dec 2011 for Refurbishment and Replacement of
Machinery and Infrastructure (RRMI) at HSL. As per the sanction, HSL would submit utilization
certificate within one year and in case of non-utilization of the sanctioned amount within one
year, interest earned on the unutilized funds would be credited to the Govt. Accordingly, interest
earned within one year of Rs 42.18 Cr was accounted as other income in the years 2011-12 &
2012-13. However, since Govt. Audit had taken a different view on the accounts for FY 2012-13
that the said interest of Rs 42.18 Cr was to be shown as a liability of HSL, the company had
taken up with MoD for clarification / approval for retention of the said interest. Further to the
above, the company submitted a Fresh Financial Restructuring Proposal in Feb 2014 in which
interest earned on RRMI funds was included in the said proposal and the same is under active
consideration of GoI. View said position, no provision was made towards the said interest of
Rs 42.18 Cr.
(b)
No provision is also made towards notional interest of Rs 5.53 Cr on RRMI funds utilized for
ship construction & submarine repair works on replenishment basis, since as per the sanction
letter interest earned will be credited to the Government and accordingly actual interest earned
only has been included in the above said FFR proposal.
15
Reconciliation of balances as per price stores ledger and Bin Cards is a continuous process.
16
Certain Advances and Provisional Liabilities for Purchases remain unadjusted, pending link-up between
the same.
17
Balances of Debtors / Creditors are subject to confirmation / reconciliation.
18
Previous years figures have been regrouped / rearranged wherever necessary.


Sd/INAITULA BAIG
Company Secretary
Place : New Delhi
Date : 11 Jul 2014
70
In terms of our report of even date attached

For B.V. Rao & Co
Sd/Firm Reg. No.003118S
R Adm N K MISHRA, NM, IN (Retd)
(Partner)
Sd/M. No. 223723
VRS NAGA SARMA
Cash Flow Statement
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH, 2014

` in lakhs
Particulars
Year ended
31-March-2014
A. Cash flow from operating activities:

Net Profit/(loss) before Extraordinary, Prior period items & FE variation
Adjustments for:
Depreciation
Interest & Finance charges
Foreign exchange variation
Interest received
Loss/(profit) on sale of fixed assets
Operating Cash flow before working capital changes, Extraordinary
& Prior Period items
Exceptional & Extra-ordinary items
Prior Period items: Net Expenditure
Operating Cashflow before working capital changes & after
Extraordinary & Prior Period items
Adjustments for working capital changes:
Inventories
Trade and other receivables
Trade and other payables
Cash generated from operation (A)
B. Cashflow from Investing acitivities:
Purchase of fixed assets
Capital Work-in-progress
Sale of fixed assets
Interest received
Net Cash from investing operation (B)
C. Cashflow from financing activities:
Proceeds from Share Capital
Proceeds from Borrowings from GOI & Banks
Interest paid
Net Cash from financing operation (C)
D. Net Increase in Cash & Cash
Equivalent (A)+(B)+(C)
Exceptional & Extraordinary items
Cash and cash equivalent at the beginning of the year
Cash and cash equivalent at the end of the year
Sd/INAITULA BAIG
Company Secretary
Place : New Delhi
Date : 11 Jul 2014

Sd/VRS NAGA SARMA
Year ended
31-March-2013
(3,876.36)
(4,676.34)
754.15
925.52
96.95
(141.19)
(1.41)
817.29
1,777.08
(3,634.79)
-
(2,242.34)
28.74
812.82
(5,716.76)
841.05
(3,083.90)
(6,557.81)
(39.21)
3,802.16
(5,834.32)
(5,155.27)
11,749.74
(4,984.60)
(6,130.35)
(5,923.02)
(545.76)
458.36
1.60
141.19
55.39
(875.35)
287.70
3,634.79
3,047.14
(752.15)
(925.52)
(1,677.67)
(121.98)
(1,777.08)
(1,899.06)
(6,777.55)
(4,774.94)
47,184.49
51,959.43
40,406.94
47,184.49

For B.V. Rao & Co
(Partner)
M. No. 223723
71
Social Overheads
SCHEDULE OF NET EXPENDITURE ON TOWNSHIP, RESIDENTIAL QUARTERS AND OTHER SOCIAL OVERHEADS
FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2014
(` in lakhs)
Description
Details
EXPENDITURE ON TOWNSHIP
AND RESIDENTIAL QUARTERS
Administration & Maintenance:
Salaries, Wages & Other Benefits
Housing Estate Site Rent
Property Tax on Residential Buildings
Electricity and Water Charges
Repairs and Maintenance
Colony Security
Miscellaneous Expenditure
Depreciation
Less: Income-Rent
Electricity and Water Charges
Expenditure on Social Overheads:
Schools and Educational Facilities
Less: Educational Grant
On Medical facilities
On Subsidised Canteen
On Subsidised lunch
On Subsidised transport :
Boats and launches
On Social & Cultural Activities
370.89
16.07
9.95
223.81
125.51
49.89
6.59
179.35
76.70
28.45
(26.16)
177.57
257.04
54.19
2013-14
Details
Total
Details
367.95
16.03
1.57
147.80
71.64
69.40
7.63
802.71
9.66
812.37
256.05
556.32
90.66
81.16
43.68
(39.07)
2.29
647.85
177.29
232.31
434.61
54.19
0.53
8.67
1.37
10.03
Total
682.02
9.92
691.94
171.82
520.12
4.61
458.78
409.60
57.49
0.53
1139.47
1695.79
Expenditure on Public Relations and

Publicity:
Salaries
Publicity
2012-13
Details
931.01
1451.13
13.11
0.49
13.60
NOTES:
1.
Interest on capital outlay on Township and Residential quarters and for providing other Social Amenities (original cost of
`.562.12 lakhs written down value `.139.33 lakhs as on 31.03.2014) has not been taken into account since this has been
finalised out of Equity Share Capital except for an amount of Rs.0.45 lakhs out of grant of Andhra Pradesh in respect of
Gandhigram High School.
2.
The figures of Township Expenditure and Income have been collected only to the extent practicable from the accounts
of the company. The expenditure has been in the individual primary heads in the Profit and Loss Account.
3.
Previous years figures have been recast wherever necessary.


Sd/INAITULA BAIG
Company Secretary
Place : New Delhi
Date : 11 Jul 2014
72

Sd/VRS NAGA SARMA
3.45
Hospital Equipment
562.12
Previous Year
Place : New Delhi

Date : 11 Jul 2014
562.12
Total
21.24
18.41
Electrical Installations
Motor Vehicles
26.31
490.99
1.72
As on
31.03.2013
Roads & compound walls etc.
Buildings
Land
PARTICULARS
403.21
9.92
9.66
0.00
0.00
0.01
0.29
9.35
0.00
For the
Year
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
On sales/
Adjustment
for the year
148.99
139.33
1.41
0.20
0.95
0.08
134.98
1.72
158.91
148.99
1.41
0.20
0.95
0.38
144.33
1.72
As on
As on
31.03.2014 31.03.2013
VRS NAGA SARMA

413.13
422.79
19.83
3.25
17.46
26.23
356.01
0.00
Upto
31.03.2014
INAITULA BAIG
Company Secretary
562.12
413.13
19.83
3.25
17.46
25.93
346.66
0.00
Upto
31.03.2013
NET BLOCK
R Adm N K MISHRA, NM, IN (Retd)

0.00
0.00
562.12
21.24
3.45
18.41
26.31
490.99
1.72
As on
31.03.2014
DEPRECIATION
(` in lakhs)
Cmde KS SUBRAMANIAN, NM, IN (Retd)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
Sales/
Adjustment
during the
year
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Additions
during the
year
GROSS BLOCK
CAPITAL OUTLAY ON TOWNSHIP RESIDENTIAL QUARTERS FOR PROVIDING SOCIAL AMENITIES
Social Overheads
73
74
6.83
113.66
495.37
24.32
658.83
39.31
0.00
0.52
2.78
0.00
6.44
200.33
146.10
20.90
374.52
41.94
0.00
0.20
2.45
0.00
155.38
51.49
184.19
135.36
89.80
658.83
(1012.75)
981.69
6.08
43.63
981.44
6.08
39.67
92.36
140.65
27.52
66.82
2.58
374.52
(1026.44)
144.31
(1157.06)
2005-06
136.81
(1163.25)
2004-05
*Net Worth = Paid up Capital+Reserves and Surplus
BALANCE SHEET:
EQUITY & LIABILITIES
Shareholders funds
Share Capital
Reserves and Surplus
Non-current Liabilities :
Long term borrowings
Other long trm liabilities
Current Liabilities :
Short term barrowings
Trade payables
Other current l iabilities
Total
ASSETS
Non-current assets:
Fixed assets - Tangible
- Intangible
- Capital work in progress
Long term loans and advances
Other non-current assets
Current Assets :
Inventories
Trade receivables
Cash & cash equivalents
Short term loans and advances
Other current assets
Total
Net Worth
132.06
140.55
281.70
164.67
81.91
965.75
(706.82)
44.53
0.00
4.01
3.10
113.22
70.47
128.94
686.61
63.61
965.75
610.69
6.08
106.17
149.31
(856.13)
2006-07
253.55
148.05
211.84
126.72
71.70
981.57
(566.31)
53.40
0.87
6.23
3.54
105.67
89.78
157.40
617.84
37.76
981.57
524.72
6.36
114.02
281.01
(847.32)
2007-08
372.15
117.23
115.47
118.83
33.08
941.98
(685.34)
63.71
0.17
5.16
3.08
113.10
68.24
134.87
692.06
37.03
941.98
559.15
6.36
129.61
301.99
(987.33)
2008-09
478.90
110.07
60.31
117.64
63.54
1038.99
(683.01)
68.77
0.00
12.47
3.30
123.99
96.40
219.03
677.78
32.72
1038.99
593.83
6.36
95.88
301.99
(985.00)
2009-10
331.65
139.60
305.86
147.28
110.50
1234.44
(628.02)
76.84
0.00
12.4
3.17
107.14
93.20
169.06
679.71
123.21
1234.43
627.67
11.99
157.61
301.99
(930.01)
2010-11
FINANCIAL POSITION AND PERFORMANCE OF THE COMPANY
253.19
128.78
519.59
76.05
99.61
1279.71
(714.00)
75.38
0.00
14.44
2.95
109.72
104.82
166.85
978.62
182.29
1279.71
372.21
9.83
179.09
301.99
(1015.99)
2011-12
135.69
230.16
471.84
46.68
59.27
1117.19
(769.17)
75.96
0.00
11.56
3.81
82.22
103.60
192.77
890.60
190.97
1117.19
372.21
11.91
124.30
301.99
(1071.16)
2012-13
136.09
178.88
404.07
27.75
99.17
1005.12
(815.38)
73.84
0.04
6.97
4.18
74.13
96.08
202.43
857.29
157.02
1005.12
372.21
15.72
119.75
301.99
(1117.37)
2013-14
(` in crores)
10 Years at a Glance
Expenditure:
Materials
Direct Expenses
Pay & Benefits
Taxes and Duties
Other Expenses
Provisions and Losses
Prior period Adjustments
Exceptional items
Transfers
Total
Profit / (Loss) before interest,
Depreciation
Grant from GoI
Depreciation
Interest
Profit / (Loss) before tax
Income Tax
MAT credit enetitlement
Deferred Tax (asset) / liability
Net Profit / (Loss)
Profit & Loss Appropriation
Cumulative Profit / (Loss)
PROFIT AND LOSS ACCOUNT:

Income:
Shipbuilding
Ship repairs
Retrofit
Work-in-Progress
Other Income
Total
144.54
43.60
82.67
8.59
15.50
14.03
(1.92)
0.00
(3.32)
303.69
15.19
0.00
4.07
4.93
6.19
0.00
0.00
0.00
6.19
0.00
(1157.16)
1.87
0.00
4.15
5.61
(7.89)
0.00
0.00
0.00
(7.89)
0.00
(1163.35)
139.94
87.90
15.74
28.29
47.01
318.88
2005-06
103.08
39.65
77.88
4.29
14.23
8.48
(0.86)
0.00
(11.64)
235.11
79.47
135.12
10.71
(10.07)
21.75
236.98
2004-05
308.95
0.00
4.06
34.70
270.19
78.27
0.00
(109.01)
300.93
0.00
(856.23)
190.19
80.16
92.64
13.49
19.12
45.15
(387.40)
41.31
(3.84)
90.82
159.95
93.02
74.66
45.60
26.54
399.77
2006-07
73.81
0.00
5.82
44.51
23.48
5.49
0.00
6.66
11.33
2.52
(847.42)
222.55
89.88
80.91
20.37
25.91
8.74
(7.66)
0.08
(4.45)
436.33
202.15
108.46
73.91
41.36
84.26
510.14
2007-08
(79.31)
0.00
6.93
50.49
(136.73)
6.85
0.00
(3.57)
(140.01)
0.00
(987.43)
264.66
62.10
126.93
28.68
31.03
14.07
54.44
0.00
(4.32)
577.59
194.17
144.13
57.52
64.32
38.14
498.28
2008-09
25.07
0.00
6.46
52.41
(33.80)
(31.86)
0.00
(4.26)
2.32
0.00
(985.10)
344.57
94.39
129.89
23.25
27.85
18.67
3.46
0.00
(5.12)
636.96
253.61
266.04
99.31
(10.53)
53.60
662.03
2009-10
(265.46)
452.68
7.68
14.35
165.19
44.83
(44.83)
110.19
55.00
0.00
(930.10)
441.52
79.78
257.48
24.50
26.82
71.89
5.63
0.00
(4.28)
903.34
291.49
277.38
83.27
(48.29)
34.03
637.88
2010-11
FINANCIAL POSITION AND PERFORMANCE OF THE COMPANY
(66.19)
0.00
7.97
11.82
(85.98)
0.00
0.00
0.00
(85.98)
0.00
(1016.08)
255.85
99.07
199.90
29.66
28.47
56.34
5.21
0.00
(3.97)
670.53
254.76
193.51
115.77
0.00
40.30
604.34
2011-12
(29.51)
0.00
7.89
17.77
(55.17)
0.00
0.00
0.00
(55.17)
0.00
(1071.25)
238.39
76.91
183.06
20.81
26.42
33.08
8.41
7.59
(2.66)
592.01
196.08
152.97
134.79
0.00
78.66
562.50
2012-13
(29.43)
0.00
7.53
9.25
(46.21)
0.00
0.00
0.00
(46.21)
0.00
(1117.47)
186.05
99.55
187.90
22.95
27.40
19.13
8.13
0.29
(2.90)
548.50
239.14
68.70
145.56
0.00
65.67
519.07
2013-14
(` in crores)
10 Years at a Glance
75
76
Vidyut Land Customs Department
Jalavishnu The Scindia Steam Navigation Co. Ltd
State of Kutch The Eastern Shipping Corporation Limited
Adyar Madras Port Trust
Andamans Ministry of Home Affairs
State of Orissa The Eastern Shipping Corporation Ltd.,
17.
18.
19.
20.
21.
Jalavijaya The Scindia Steam Navigation Co., Ltd.,
15.
16.
Jalavihar The Scindia Steam Navigation Co., Ltd.,
Jagrani The Great Eastern shipping Company Limited
9.
14.
Bharatmitra The Bharat Line Limited
8.
Jalaputra The Scindia Steam Navigation Co. Ltd.,
Jalapalaka The Scindia Steam Navigation Co. Ltd.,
7.
13.
Jalapadma The Scindia Steam Navigation Co. Ltd.,
6.
Bharatratna The Bharat Line Limited
Jalapankhi The Scindia Steam Navigation Co. Ltd
5.
12.
Jalaprakash The Scindia Steam Navigation Co. Ltd.,
4.
Jalapushpa The Scindia Steam Navigation Co. Ltd.,
Kutubtari (Passenger Ferry) The Scindia Steam Navigation Co Ltd.,
3.
11.
Jalaprabha The Scindia Steam Navigation Co. Ltd.,
2.
Jalapratap The Scindia Steam Navigation Co. Ltd.,
Jalausha The Scindia Steam Navigation Co. Ltd.,
1.
10.
Name of the Ship / Name of the Owner
S.NO.
(Kort Nozzle Tug)
8.253
7.322
(Motor Launch)
7.311
7.248
8.114
8.100
8.087
8.125
8.125
8.134
8.141
8.137
8.150
8.138
8.179
8.179
Dead Weight
Tonnes
8.160
2.470(Passenger cum
Cargo Vessel)
SHIPS BUILT
Date of Laying
Keel
08-12-1955
10-08-1955
27-09-1954
02-09-1954
16-12-1953
19-10-1953
30-09-1953
01-12-1953
21-07-1952
21-07-1952
26-12-1951
09-05-1951
09-05-1951
28-09-1950
26-01-1950
26-01-1950
07-10-1949
27-05-1948
23-05-1947
22-08-1946
22-06-1946
HINDUSTAN SHIPYARD LIMITED :: VISAKHAPATNAM
16-02-1957
25-07-1956
31-12-1955
29-03-1956
02-11-1955
18-08-1954
26-03-1955
16-08-1954
09-11-1953
26-08-1953
09-07-1952
27-02-1952
15-12-1951
26-03-1951
27-12-1950
14-09-1950
06-12-1949
08-08-1949
18-12-1948
20-11-1948
14-03-1948
Date of
Launching/Floating
31-12-1957
04-12-1957
25-09-1957
25-11-1956
23-05-1956
18-03-1958
29-12-1955
22-06-1955
19-08-1954
15-07-1954
17-10-1952
09.08.1952
09-06-1952
02-07-1951
03-04-1951
18-01-1951
04-04-1950
20-12-1949
19-05-1949
07-04-1949
26-10-1948
Date of
Delivery
Ships Built
Indian Industry The India Steamship Company Ltd.,
Jayalakshmi New Dholera Steamships Limited
State of Uttar Pradesh The Eastern Shipping Corporation Ltd.,
R.S.V. Haldia Calcutta Port Commissioners
State of Rajasthan The Eastern Shipping Corporation Ltd.,
Vishvanidhi The Western Shipping Corporation of India Ltd.,
State of Punjab The Shipping Corporation of India Ltd.,
Vishva Shanti The Shipping Corporation of India Ltd.,
Vishva Prem The Shipping Corporation of India Ltd.,
Vishva Maya The Shipping Corporation of India Ltd.,
Vishva Mangal The Shipping Corporation of India Ltd.,
Jala Kala The Scindia Steam Navigation Co., Ltd.,
Darshak Indian Navy
State of Madhya Pradesh The Shipping Corporation of India Ltd.,
Rohini Hindustan Shipyard Limited
Jala Kendra The Scindia Stea Navigation Co., Ltd.,
State of West Bengal The Shipping Corporation of India Ltd.,
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
State of Mysore The Shipping Corporation of India Ltd.,
Dhruvak Indian Navy
25.
44.
Jagmitra The Great Eastern Shipping Company Ltd.,
24.
Jalakanta The Scindia Steam Navigation Co., Ltd.,
Jalaveera The Scindia Steam Navigation Co., Ltd.,
23.
43.
Jalavikram The Scindia Steam Navigation Co., Ltd
22.
S.NO.
77
12,923
12,912
12,915
12,947
(Launch)
12,873
(Survey Vessel)
12,913
12,608
12,577
12,565
12,606
12,557
9,666
9,644
(Port Survey Vessel)
9,632
5,405
6.419
(Mooring Vessel)
6.391
7.312
7.312
Dead Weight
Tonnes
13-11-1963
26-04-1963
06-09-1962
24-05-1962
08-01-1962
14-10-1957
12-10-1961
05-05-1961
22-09-1960
27-08-1960
29-09-1960
02-12-1959
11-05-1959
22-01-1959
16-11-1960
03-10-1959
22-08-1957
07-12-1957
27-01-1956
31-08-1957
04-08-1956
16-04-1956
Date of Laying
Keel
09-12-1965
01-07-1965
05-12-1964
16-04-1964
15-10-1963
02-11-1959
29-03-1963
17-08-1962
06-04-1962
20-12-1961
25-01-1961
16-04-1961
06-09-1960
29-04-1960
11-06-1960
31-12-1959
22-04-1959
12-12-1958
16-07-1958
05-07-1958
22-11-1957
29-07-1957
Date of
Launching/Floating
11-10-1966
02-08-1966
31-03-1966
29-01-1966
20-08-1965
04-05-1965
28-12-1964
12-11-1964
23-09-1963
30-04-1963
28-01-1963
14-09-1962
06-04-1962
02-10-1961
18-05-1961
25-03-1961
16-01-1961
27-01-1960
27-10-1959
16-11-1959
10-06-1959
26-07-1957
26-03-1958
Date of
Delivery
Ships Built
Vishva Tej The Shipping Corporation of India Ltd.,
Vishva Tirth The Shipping Corporation of India Ltd.,
Vishva Seva The Shipping Corporation of India Ltd.,
Vishva Siddhi The Shipping Corporation of India Ltd.,
Vishva Bhakti The Shipping Corporation of India Ltd.,
Vishva Shoba The Shipping Corporation of India Ltd.,
Vishva Shakti The Shipping Corporation of India Ltd.,
Vishva Dharma The Shipping Corporation of India Ltd.,
Vishva Vikram The Shipping Corporation of India Ltd.,
Shanti The Visakhapatnam Port Trust
Vishva Sarshan The Shipping Corporation of India Ltd.,
Walchand Hindustan Shipyard Limited
Vishva Nayak The Shipping Corporation of India Ltd.,
T.S. Rajendra The Directorate General of Shipping
Bombay Duck-II The Visakhapatnam Port Trust
Vishva Karuna The Shipping Corporation of India Ltd.,
Vishva Yash The Shipping Corporation of India Ltd.,
Vishva Mamta The Shipping Corporation of India Ltd.,
Vishva Bandan The Shipping Corporation of India Ltd.,
Vishva Madhuri The Shipping Corporation of India Ltd.,
Indian Endurance India Steam Ship Company Ltd.,
Jag Doot The Great Eastern Shipping Company Ltd.,
Jagat Priya Dempo Stemships Ltd.,
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
45.
S.NO.
78
21,393
21,298
14,197
13,762
13,765
13,971
13,986
13,967
(Dredger)
(Training Ship)
12,881
(Landing Craft)
12,883
Launch
12,881
12,852
12,900
12,931
12,937
12,972
12,959
12,886
12,886
Dead Weight
Tonnes
30-08-1973
11-09-1972
29-03-1972
25-11-1971
30-06-1971
23-12-1970
18-03-1970
26-08-1970
27-08-1971
20-10-1969
26-06-1969
01-05-1971
16-12-1968
12-03-1970
06-06-1968
22-11-1967
19-05-1967
13-02-1967
23-01-1968
24-12-1965
23-08-1965
08-01-1965
04-05-1964
Date of Laying
Keel
03-10-1974
22-06-1974
26-01-1974
17-08-1973
06-03-1973
23-08-1972
17-03-1972
02-11-1071
12-07-1972
25-04-1971
30-11-1970
14-07-1971
20-07-1970
14-12-1970
09-02-1970
08-10-1969
20-03-1969
24-09-1968
15-04-1968
15-11-1967
26-1967
28-12-1966
01-10-1966
Date of
Launching/Floating
30-11-1975
23-03-1975
16-03-1975
16-08-1974
04-03-1974
16-10-1973
18-05-1973
02-03-1973
11-02-1973
27-03-1972
22-10-1971
30-09-1971
02-07-1971
31-12-1970
12-09-1970
20-04-1970
17-12-1969
11-05-1969
29-01-1969
12-09-1968
02-03-1968
03-12-1967
02-10-1967
Date of
Delivery
Ships Built
Sagarika-1 Oil & Natural Gas Commission
Jag Dhir The Great Eastern Shipping Company Ltd.,
Sagarika-2 Oil & Natural Gas Commission
Jag Dharma The Great Eastern Shipping Company Ltd.,
Indian Explorer India Steam Ship Company Ltd.,
Jag Deesh The Great Eastern Shipping Company Ltd.,
Damodar Ganga Damodar Bulk Carriers Ltd.,
Indian Grace India Steam Ship Company Ltd.,
Indian Glory Indian Steam Ship Company Ltd.,
`Jala Godavari The Scindia Steam Navigation Company Ltd.,
Jalagovind The Scindia Steam Navigation Company Ltd,
Jalagopal The Scindia Steam Navigation Company Ltd.,
Jalagouri The Scindia Steam Navigation Company Ltd.,

Tenneti Hindustan Shipyard Ltd.,
State of Haryana The Shipping Corporation of India Ltd.,
Nand Rati Essar Bulk Carrier Ltd.,
State of Gujarat The shipping Corporation of India Ltd.,
Samudrika-4 OPSSV Oil & Natural Gas Commission
Lok Maheswari Bulk Carrier, SDFC / Moghul Line Ltd.,
Samudrika 6 OPSSV Oil & Natural Gas Commission
State of Orissa The Shipping Corporation of India Ltd.,
Prabhu Daya Tolani Shipping Corporation of India Ltd.,
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
68.
S.NO.
Date of Laying
Keel
28-01-1974
79
26,713
16,806
1,240
26,728
1,240
1,231
16,789
26,710
16,700
20,854
(Landing Craft)
20,850
20,868
20,914
21,344
21,283
21,365
21,406
14,089
21,420
04-02-1983
05-12-1979
12-08-1984
03-10-1981
22-05-1984
22-04-1984
30-05-1979
09-03-1981
19-03-1979
25-10-1977
29-10-1980
12-04-1977
25-10-1976
02-07-1976
26-02-1976
21-11-1975
26-07-1975
16-03-1976
07-10-1974
26-06-1974
(Supply cum Crew Vessel) 18-12-1974
21,383
(Supply cum Crew Vessel) 05-04-1974
Dead Weight
Tonnes
25-11-1984
10-01-1982
29-01-1985
20-08-1983
10-03-1985
24-11-1984
03-06-1981
30-01-1983
27-07-1980
01-12-1979
06-05-1981
11-07-1979
03-11-1978
16-03-1978
04-08-1977
23-12-1976
24-10-1976
30-03-1976
17-11-1975
24-07-1975
30-11-1975
14-03-1975
07-08-1975
Date of
Launching/Floating
02-03-1987
08-07-1986
24-09-1986
31-03-1986
19-03-1986
09-12-1985
12-12-1984
16-07-1984
16-06-1983
27-03-1981
29-09-1981
11-09-1980
05-12-1979
16-04-1979
27-10-1978
29-03-1978
25-06-1977
12-03-1977
30-10-1976
06-09-1976
30-03-1976
20-03-1976
28-02-1976
Date of
Delivery
Ships Built
80
INS Sarayu OPV, Indian Navy
INS Sharada Indian Navy
INS Pratap The Shipping Corporation of India Ltd.,
INS Sujata OPV, Indian Navy
Ambica HSD Oiler Indian Navy
Maharashtra The Shipping Corporation of India Ltd.,
Swatantra The Visakhapatnam Port Trust
M.V. Goa The Shipping Corporation of India Ltd.,
M.V. Swaraj Dweep A & N Administration
104.
105.
106.
107.
108.
109.
110.
111.
112.
Argo C.I.W.C
99.
INS Gharial GRSE / Indian Navy
Matla C.I.W.C
98.
103.
Mandakini C.I.W.C
97.
INS Savitri OPV, Indian Navy
Mahanadi C.I.W.C
96.
102.
Manjari C.I.W.C
95.
Lok Prem The Shipping Corporation of India Ltd.,
Mundeswari C.I.W.C
94.
101.
Lok Rajeswari The Shipping Corporation of India Ltd.,
93.
Lok Prakash The Shipping Corporation of India Ltd.,
Sagar Bhushan (Drill Ship) Oil & Natural Gas Commission
92.
100.
91.
S.NO.
1200 Passenger-cumCargo Vessel
42,750 DWT (Bulker)
30 T.B.P Tug
42,750 DWT (Bulker)
1,000
OPV
26,718
OPV
OPV
LSTL
OPV
26,714
26,790
825 (Barge)
825 (Barge)
825 (Barge)
825 (Barge)
825 (Barge)
825 (Barge)
26,639
9,113
1,242
Dead Weight
Tonnes
22-03-1994
20-11-1994
10-09-1994
18-09-1986
01-09-1993
16-06-1989
28-08-1985
16-06-1989
25-06-1988
30-11-1989
25-06-1988
30-03-1985
19-07-1984
1-8-1987
1-8-1987
1-8-1987
1-8-1987
1-8-1987
1-8-1987
05-03-1982
12-08-1984
12-08-1984
Date of Laying
Keel
11-12-1996
22-03-1996
29-03-1997
23-09-1992
10-12-1994
23-10-1991
31-07-1988
22-08-1990
16-10-19891
01-04-1991
23-05-1989
29-05-1987
24-03-1985
07-02-1989
10-01-1989
10-11-1988
27-10-1988
10-11-1988
27-10-1988
16-07-1984
18-08-1985
23-06-1986
Date of
Launching/Floating
09-12-1999
15-01-1998
12-09-1997
06-01-1996
23-01-1995
03-11-1993
28-06-1993
16-12-1992
04-10-1991
02-05-1991
20-11-1990
23-02-1990
12-04-1989
03-03-1989
03-03-1989
03-03-1989
03-03-1989
03-03-1989
03-03-1989
27-10-1988
04-11-1987
28-05-1987
Date of
Delivery
Ships Built
10 x 8 x 2 Meters
10 x 8 x 2 Meters
10 x 8 x 2 Meters
10 x 8 x 2 Meters
10 x 8 x 2 Meters
M.V. RANGAT A & N Administration
M.V. BARATANG A & N Administration
M.T KABINI New Mangalore Port Trust
I.N.S GAJ - ATVP H.Q (Indian Navy)
M.T. TIRACOL - II Marmugao Port Trust
M.V. CHOULDAR A & N Administration
M.T. CHAPORA - II Marmugao Port Trust
M.V. TEAL A & N Administration
M.V. Jolly Buoy A & N Administration
F.C Ravi B M/s Sarat Chatterjee & Co.
M.V. Wandoor A & N Administration
FRP Launch Visakhapatnam Port Trust
M.V. Hut Bay A & N Administration
G.H.D. Sagar Durga Visakhapatnam Port Trust
1st. Barge for A & N Administration
2nd Barge for A & N Administration
3rd Barge for A & N Administration
4th Barge for A & N Administration
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
500 M Dredger
M.V.Tamil Nadu The Shipping Corporation of India Ltd.,
115.
18.11.1999
10-11-1999
11-10-1999
10-11-1999
11-10-1999
18-01-2000
17-08-1999
30-09-1999
30-09-1999
13-04-1997
05-07-1998
05-07-1998
Date of Laying
Keel
100 Passenger Vessel
Launch
30.09.1999
08.12.1999
18.11.1999
17.5 Tons Floating Crane 29.02.2000
45T B.P. Tug
45T B.P. Tug
25T B.P Tug
50T B.P. Tug
42,750 DWT (Bulker)
50T B.P. Tug
Sardar Patel The Visakhapatnam Port Trust
114.
50T B.P. Tug
Dead Weight
Tonnes
Mahatma The Visakhapatnam Port Trust
113.
S.NO.
05.09.2003
06.10.2002
23.04.2001
05.09.2003
23.04.2001
05-01-2001
25-01-2002
05-01-2001
15-11-2001
31-08-2001
19-04-2001
27-10-2000
27-10-2000
21-10-1998
22-03-1999
22-03-1999
Date of
Launching/Floating
11.02.2005
08.02.2005
02.02.2005
02.02.2005
02.02.2005
09.02.2005
11.02.2005
02.01.2005
15.07.2004
09.05.2004
20.05.2004
29-01-2004
24-12-2003
10-11-2003
31-03-2003
04-10-2002
03-08-2002
17-01-2002
16-10-2001
15-09-2000
27-05-2000
17-01-2000
Date of
Delivery
Ships Built
81
82
M.L.Radha Nagar for A & N. Admin.
M.L Uttava for A & N Admin.
M.L.Nimbutala for A & N Admin.
M.L.Nilambar for A & N Admin.
M.V.Good Providence, for

M/s. Goodearth Maritime Limited (GML), Chennai
M.V. Good Princes, for GML, Chennai.
M.V.Good Pacific, for GML, Chennai
M.V.Kavaratti, for UTL Administration
M.V. Bambooka for A & N Administration
139.
140.
141.
142.
143.
144.
145.
146.
147.
M.V. Jal Sudhak, for Visakhapatnam Port Trust
ORV Sagar Manjusha, National Institute of Ocean Technology
138.
149.
M.V.Jhansi Rani for Visakhapatnam Port Trust
137.
M.V. North Passage for A & N Admin.
M.V. Strait Island A & N Administration
136.
148.
135.
S.NO.
15.10.2008
Oil recovery and pollution

control vessel
18.10.2003
14.06.2004
14.02.2005
03.01.2008
16.05.2007
22.01.2007
03.11.2005
17.06.2003
11.01.2003
Date of
Launching/Floating
14.06.2004
08.12.1999
21.10.2000
02.01.2007
18.01.2006
29.07.2005
23.12.2004
03.11.2000
08.12.1999
Date of Laying
Keel
08.12.1999
700 Passengers-160 T
Cargo vessel
30,000 DWT Trader

series Bulk carrier
30,000 DWT Trader

series Bulk carrier
30,000 DWT Trader

series Bulk carrier
Utility Launch
Utility Launch
Utility Launch
Utility Launch
Buoy Tender cum

Research vessel
50 T B.P.Tug
10 x 8 x 2 Meters
Dead Weight
Tonnes
27.04.2009
06.11.2008
06.11.2008
27.06.2008
07.05.2008
23.01.2008
31.05.2007
02.11.2006
02.11.2006
18.07.2006
18.07.2006
14.06.2006
01.09.2005
20.05.2005
08.02.2005
Date of
Delivery
Ships Built
M.V. Good Pilgrims for GML, Chennai
M.T Iswari, for New Mangalore Port Trust
M.V. Good Pride for GML, Chennai
M.V.Good Precedent for GML, Chennai
Mr. A.W. Delima for VPT, Visakhapatnam
Rani Abbakka for Indian Coast Guard
M.V. Good Trade for GML, Chennai
Col. H. Cart Wright Reid for

Visakhapatnam Port Trust, Visakhapatnam
Rani Avanti Bai for Indian Coast Guard
M.V. Good Day for GML
"DHIRAJ" for Indian Navy
"SAHAS" for Indian Navy
"HIMMAT" for Indian Navy
151.
152.
153.
154.
155.
156.
157.
158.
159.
160.
161.
162.
150.
S.NO.
50T Bollard Pull Tug
53000 DWT Diamond

Series Bulk Carrier
Inshore Patrol Vessel
50-T Bollard pull Tug
53,000 DWT Diamond

Series Bulk Carrier
Inshore Patrol Vessel
50-T Bollard pull Tug
53,000 DWT Diamond

series Bulk carrier
53,000 DWT Diamond

series Bulk carrier
32-T. Bollard Pull tug
30,000 DWT Trader

series Bulk carrier
Dead Weight
Tonnes
27-12-2010
05-03-2011
27-12-2010
30-12-2010
25-06-2007
21.03.2009
31-03-2010
25-06-2007
21.03.2009
21.03.2009
09.01.2008
20-01-07
18.12.07
Date of Laying
Keel
03-08-2013
03-08-2013
03-08-2013
12-06-2012
28-05-2009
04-11-2010
31-03-2011
28-05-2009
14-07-2010
29.03.2010
23.03.2009
05.06.2008
14.11.2008
Date of
Launching/Floating
31-03-2014
24-12-2013
24-12-2013
29-07-2013
08-05-2013
10-08-2012
17-02-2012
05-01-2012
30-12-2011
05.02.2011
12.04.2010
17.08.2009
10.08.2009
Date of
Delivery
Ships Built
83

HINDUSTAN SHIPYARD LIMITED ANNUAL REPORT HIGHLIGHTS

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HINDUSTAN SHIPYARD LIMITED ANNUAL REPORT HIGHLIGHTS

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HINDUSTAN SHIPYARD LIMITED

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

RAKSHA RAJYA MANTRI

Corporate Governance Report

Management Discussion & Analysis Report

Comments of the C & AG of India

Profit & Loss Accounts

Notes to the Accounts

Notes forming part of Accounts

Cash Flow Statement

Last 10 years at a glance

To imbibe the latest in

PERMANENT SPECIAL INVITEES

Shri Ashok KK Meena

Shri Rajnish Kumar

Shri Skand R Tayal

RAdm Anil Kumar Saxena

Shri Samirendra Chatterjee

Cost Accountant, Visakhapatnam

Cmde Ashok Bhal

Chartered Accountants, Visakhapatnam

Shri Inaitula Baig

Shri V R S Naga Sarma

Corporate Identity Number (CIN)

CHAIRMANS STATEMENT IN 62nd AGM

The Major highlights of the year 2013-14 are as under

Some of the noteworthy achievements are as follows

Hindustan Shipyard Limited

Grading vide Memorandum of Understanding

Hindustan Shipyard Limited

Annual Report 2013-14

STATEMENT PURSUANT TO SECTION 102 (1) OF

Hindustan Shipyard Limited

DIRECTORS REPORT FOR THE YEAR 2013-14

DHIRAJ, SAHAS & HIMMAT, 3 No 50 T BP Tugs delivered to Indian Navy

Annual Report 2013-14

ICGS Rani Avantibai, second of 05 Nos. Inshore Patrol Vessel

Dhiraj, Second of 03 Nos. 50 T Bollard Pull Tug

Sahas, Third of 03 Nos. 50 T Bollard Pull Tug

Himat, First of 03 Nos. 50 T Bollard Pull Tug

ICGS Rani Avantibai, second of 05 Nos. Inshore

MV Good Day, fourth of 05 nos. (53000 DWT)

Dhiraj, Second of 03 Nos. 50 T Bollard Pull Tug

Sahas, Third of 03 Nos. 50 T Bollard Pull Tug

Himmat, First of 03 Nos. 50 T Bollard Pull Tug

Type of the Vessel

53,000 DWT Diamond series

Inshore Patrol Vessels

Indian Coast Guard

Inshore Patrol Vessels

Indian Coast Guard

50 T Bollard pull Tugs

Kandla Port Trust

25 T Bollard Pull Tugs

10T Bollard Pull Tugs

Hindustan Shipyard Limited

Profit/(Loss) before Depreciation,

Interest & Finance Charges

Net Profit / (Loss)

Contribution to National Exchequer

Basic designs for 10 T Bollard Pull Tugs

40 Nos Aveva Marine CAD/CAM licenses.