MIRA
INFORM REPORT
|
Report Date : |
19.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
MAZAGON DOCK
LIMITED |
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Registered
Office : |
Dockyard Road,
Mumbai – 400 010, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2006 |
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Date of
Incorporation : |
26.02.1934 |
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Com. Reg. No.: |
11-2079 |
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CIN No.: |
U35100MH1934PLC002079 |
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TAN No.: |
BLRM00118G |
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PAN No.: |
34-000-CX |
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Legal Form : |
A public limited liability
company. The company's entire share capital is held by the Government of
India. |
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Line of
Business : |
Construction of
Naval Ships, Submarines, Coast Guard Ships, Merchant Vessels, Fabrication of Offshore
Platforms, Jack-up Rigs, Transportation and Installation of Platforms, Pipe
Coating, Laying of Sub-Sea Pipes, Diving and Vessel Management Services
besides Ship-repair and General Engineering Work. |
RATING &
COMMENTS
|
MIRA’s Rating
: |
Ba |
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable
to meet normal commitments. |
Satisfactory |
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Maximum Credit
Limit : |
USD 114900000 |
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Status : |
Moderate |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed Government of India undertaking having
satisfactory track. The company’s performance has improved. Payments are reported as usually correct
and as per commitments. However, as it is
a Government company, lenders and creditors can feel confident of
Government’s exposure to the company. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered
Office : |
Dockyard Road,
Mumbai – 400 010, Maharashtra, India. |
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Tel. No.: |
91-22-2377 5562
(20 Lines) |
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Fax No.: |
91-22-2373 8338 /
2373 8340 / 8147 |
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E-Mail : |
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Website : |
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Guest House: |
Angre House, MDL,
Dockyard Road, Mumbai - 400 010, India Tel. No.
91-22-2373 8337 / 2372 5043 |
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Zonal/Abroad
Office At |
C/o. Indian High
Commission, India House, Aldwaych London WC2B 4NA, U. K. Contact Person:
Mr. A. K. Ahuja - Regional Chief Manager
(UK) Tel. No. (44) 71
836 7275 / (44) 81 572 2474 (Res.) Fax No. (7095)
917127 Embassy of India,
6/8, Ulitsa Vorontsovo Plye, Moscow Russia, C/o. Ministry of External
Affairs, New Delhi - 110 011 Contact Person
:Cdr. H. C. Dhamija (FS), Tel. No. (7095)
9171127 / 99(7095) 9520978 Fax No. (7095)
9171127 |
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Resident
Representatives at Delhi |
Room No. 8N, H
Block Annexe, DHQ PO New Delhi - 110 011 Contact Person:
Mr. Yogesh Sharma - Regional Manager Tel. No.
91-11-2379 3776 / 2247 4352 (Res.) |
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Regional
Office: |
Shipyard House, A1/314,
Safdarjung Enclave, New Delhi-110 029 |
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Tel No: |
91-11-26100972 /
26108941 |
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Fax No: |
91-11-26108940 |
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Regional
Office: |
First Secretary
(MDL), Moscow Embassy of India 4, Ulitsa Vorontsovo Polye, Moscow – 103 064,
Russia |
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Tel No: |
007-095-9358689 |
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Fax No: |
007-095-9171127 |
DIRECTORS
|
Name : |
Mr. H. S. Kang |
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Designation : |
Chairman &
Managing Director |
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Name : |
Mr. P. K.
Mukherjee |
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Designation : |
Director (CP
&P) |
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Name : |
Mr. S. K. Murthy |
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Designation : |
Director
(Shipbuilding) |
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Name : |
Mr. G
Satyanarayana |
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Designation : |
Director(Finance) |
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Name : |
Mr. L. S. Sachdev |
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Designation : |
Director
(S&HE) |
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Name : |
Mr. A. V. Pandit |
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Designation : |
GGM (P&A) |
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Name : |
Mr. P. D. Salain |
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Designation : |
General Manager
(Finance) |
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Name : |
Mr. A.P. Mishra |
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Designation : |
General Manager
(Offshore) |
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Name : |
Mr. S. B. Singh |
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Designation : |
General Manager
(Ship building) |
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Name : |
Mr. S. B.
Koundinya |
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Designation : |
General Manager
(Design) |
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Name : |
Mr. R. K. Jain |
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Designation : |
CVO |
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Name : |
Mr. P. K.
Mukherjee |
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Designation : |
GM (QA-SB) |
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Name : |
Mr. M. V. Vaze |
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Designation : |
AGM (SR) |
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Name : |
Mr. G. M. Shenoy |
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Designation : |
AGM (Mat) |
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Name : |
Mr. V. S. Borde |
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Designation : |
AGM (CP) |
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Name : |
Mr. S. K. K.
Krishnan |
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Designation : |
Chairman and
Managing Director |
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|
Name : |
Mr. M. Rammohan
Rao |
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Designation : |
Director |
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Name : |
Mr. Alok Perti |
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Designation : |
Director |
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Name : |
Mr. Anuradha
Mitra |
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Designation : |
Director |
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Name : |
Mr. S.K. Murthy |
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Designation : |
Director |
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Name : |
Mr. M K Murthy |
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Designation : |
Director |
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Name : |
Mr. S.K. Pachauri |
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Designation : |
Director |
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Member of Lok
Sabha: |
Prof. Vijay Kumar
Malhotra, Chairman Mr. Sudip
Bandyopadhyay Mr. Ram Tahal
Chaudhary Mr. Sangeeta
Kumari Singh Deo Mr. C. K. Jaffar
Sherief Mr. K.E.
Krishnamurthy Mr. Vilas
Muttemwar Mr. Chandra Nath
Singh Mr. Tarit Baran
Topdar |
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Member of
Rajyasabha |
Mr. Suresh
Kalmadi Mr. Kalraj Mishra Mr. Sathish
Pradhan Mr. K.
Kalavenkata Rao Mr. Jibon Roy |
BUSINESS DETAILS
|
Line of
Business : |
Construction of
Naval Ships, Submarines, Coast Guard Ships, Merchant Vessels, Fabrication of Offshore
Platforms, Jack-up Rigs, Transportation and Installation of Platforms, Pipe
Coating, Laying of Sub-Sea Pipes, Diving and Vessel Management Services
besides Ship-repair and General Engineering Work. |
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Products : |
Offshore Supply
Vessels Scrap |
PRODUCTION
STATUS
|
Particulars |
Actual Production |
|
Ships delivered |
6 |
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Ships under
construction |
7 |
GENERAL
INFORMATION
|
No. of
Employees : |
8157 |
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Bankers : |
Bank of India,
Mumbai Canara Bank,
Mumbai State Bank of India,
Mumbai |
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Facilities : |
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Banking Relations : |
- |
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Auditors : |
G. M. Kapadia
& Company Chartered
Accountants Ghalla Bhansali
& Associates Chartered
Accountants |
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Associates/Subsidiaries
: |
All Government of
India Undertaking Companies |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs. 100/- each |
Rs. 2000.000 millions |
|
12372000 |
7% Redeemable
Cumulative Preference Shares |
Rs. 100/- each |
Rs. 1237.200 millions |
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TOTAL |
|
Rs. 3237.200 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
19920000 |
Equity Shares |
Rs. 100/- each |
Rs. 1992.000 millions |
|
9897600 |
7% Redeemable
Cumulative Preference Shares |
Rs. 100/- each |
Rs. 989.760 millions |
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TOTAL |
|
Rs. 2981.760 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
2981.800 |
2981.800 |
2981.800 |
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2] Share Application
Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
752.300 |
499.200 |
247.900 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
[440.100] |
|
NETWORTH
|
3734.100 |
3481.000 |
2789.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
65.100 |
152.700 |
240.300 |
|
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2] Unsecured
Loans |
224.800 |
265.700 |
280.600 |
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TOTAL
BORROWING
|
289.900 |
418.400 |
520.900 |
|
|
DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
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TOTAL
|
4024.000 |
3899.400 |
3310.500 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
715.600 |
655.400 |
704.800 |
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Capital work-in-progress
|
59.700 |
158.300 |
110.100 |
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INVESTMENT
|
60.000 |
60.000 |
60.000 |
|
DEFERREX TAX ASSETS
|
|
344.300 |
360.000 |
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
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Inventories
|
25891.700
|
17809.400
|
12037.700
|
|
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Sundry Debtors
|
358.000
|
483.500
|
983.300
|
|
|
Cash & Bank Balances
|
26926.200
|
24114.200
|
22304.900
|
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances
|
21801.400
|
7362.600
|
4091.800
|
Total Current Assets
|
74977.300
|
49769.700 |
39417.700 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
68839.100
|
47088.300
|
37342.100
|
|
|
Provisions
|
2949.500
|
0.000
|
0.000
|
Total Current Liabilities
|
71788.600
|
47088.300 |
37342.100 |
|
Net
Current Assets
|
3188.700
|
2681.400 |
2075.600 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
4024.000 |
3899.400 |
3310.500 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
1835.000 |
6691.800 |
5321.100 |
Other Income
|
5280.100 |
0.000 |
0.000 |
Total Income:
|
7115.100 |
6691.800 |
5321.100 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
1097.000 |
1337.600 |
96.300 |
Provision for Taxation
|
496.000 |
646.200 |
17.100 |
Profit/(Loss) After Tax
|
601.000 |
691.400 |
79.200 |
|
|
|
|
|
|
Export Value |
0.000 |
0.100 |
0.400 |
|
|
|
|
|
|
Import Value |
0.000 |
1647.300 |
844.500 |
|
|
|
|
|
Expenditure:
|
|
|
|
|
Raw
Materials |
1813.700
|
0.000 |
0.000 |
|
Excise
Duty |
01.800
|
0.000 |
0.000 |
|
Power
& Fuel Cost |
74.100
|
0.000 |
0.000 |
|
Other
Manufacturing Expenses |
675.700
|
0.000 |
0.000 |
|
Employee
Cost |
2294.300
|
0.000 |
0.000 |
|
Selling
and Administration Expenses |
162.100
|
0.000 |
0.000 |
|
Miscellaneous
Expenses |
625.600
|
0.000 |
0.000 |
|
Total Expenditure |
5647.300 |
5354.200 |
5224.800 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.10 |
0.38 |
0.33 |
|
Long Term Debt
Equity Ratio |
0.10 |
0.38 |
0.33 |
|
Current Ratio |
1.05 |
1.09 |
1.08 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.80 |
1.12 |
0.83 |
|
Inventory |
0.08 |
0.22 |
0.20 |
|
Debtors |
4.36 |
2.45 |
1.79 |
|
Interest Cover
Ratio |
3.07 |
2.19 |
1.07 |
|
Operating Profit
Margin (%) |
92.43 |
128.56 |
72.38 |
|
Profit Before
Interest and Tax Margin (%) |
88.72 |
124.40 |
68.74 |
|
Cash Profit
Margin (%) |
36.45 |
42.69 |
6.86 |
|
Adjusted Net
Profit Margin (%) |
32.75 |
38.54 |
3.22 |
|
Return on Capital
Employed (%) |
41.10 |
51.64 |
36.88 |
|
Return on Net
Worth (%) |
13.97 |
32.23 |
3.53 |
LOCAL AGENCY FURTHER
INFORMATION
History :
The company was
primarily formed as a Ship Repair Yard and was taken over by the Government of
India in 1960. Its' primary activities
are building warships for the Indian Navy, Submarine Construction, Non-Defence Shipbuilding
/ Ship Repairs and other High-Tech Engineering Activities.
Subject was taken
over as a Public Sector Undertaking under the Administrative control of the
Ministry of Defence, Department of Defence Production and Supplies in May 1960
primarily for construction of Warships prior to which it was a Joint Stock
Company owned by P & O Steam Navigation Company and BI Steam Navigation
Company. At the time of take-over, the
company was mainly a ship repair yard. The Yard has been expanded to build Warships
upto 6500 Tonnes displacement and Merchant ships upto 27000 Tonnes DWT. The company commenced manufacture and
installation of Offshore Process and Wellhead Platforms from 1977 onwards.
It was decided that
construction of submarines for the Navy will be carried out at subject company.
Two types “209
PRODUCTION ACHIEVEMENTS :
The significant achievements of the company on the production front
during the year 2004 – 05 were :
> The Second Stealth Frigate of P -17 Series was launched on 4th
June, 2004. This is after a long gap
that the successive launching
of series of ships has commenced at the Shipyard. The Third Ship has
also since been launched on
27.05.2005
> Production of second Destroyer of P – 15A series commenced on 21st
February, 2005. With this the
production of ships of P – 15A
series picks up momentum.
> The 9th floating Border Outpost was delivered to Border
Security Force on 21st June, 2004.
> One Dredger was delivered to Bhakra Beas Management Board on 5th
August, 2004. This was a
unique task of construction of
the Dredger and trials thereafter at MDL.
The Dredger was then
dismantled and transported to
Sunder Nagar before being reassembled and commissioned there.
FINANCIAL HIGHLIGHTS :
> During the year 2004-05, the company registered the value of
Production of Rs. 5406.300 millions. This
is 9% more than the VOP of Rs.
4957.700 millions for the year 2003-04.
Ø
The profit [before tax] posted by the company for the year 2004 – 05 is
Rs. 1337.600 millions as against the profit [before tax] of Rs. 96.300 millions
in the previous year. This is 1339%
more than the previous year. The
company has made a substantial profit after a gap of 4 years. The company made a loss of Rs. 183.600
millions, Rs. 147.400 millions & Rs. 308.900 millions during the years 2000
– 01, 2001-02 & 2002 – 03 respectively.
The company is in receipt of Rs. 779.300 millions from ONGCL by way of
additional revenue against the claim to compensate the cost increase on enhanced
scope of work on BHN Revamp Project executed in 2002-03 based on the
recommendation of ‘Outside Expert Committee’ constituted for the purpose by
ONGCL.
CAPITAL STRUCTURE :
The Authorized Equity Share Capital and 7% Redeemable Cumulative
Preference Share Capital [7% RCPS] of the company as on 31.03.2005 stood at Rs.
2000 millions and Rs. 1237.200 millions respectively. The Paid-up Equity Share Capital as on 31.03.2005 remained at Rs.
1992.000 millions and that the Preference Share Capital stood at Rs. 989.800
millions. During the year there was no
increase in the Authorized or paid up Share Capital. As stated in the report on the accounts for the year ended
31.03.2004, the company could not redeem and pay four installments each of Rs.
247.450 millions due on 31.03.2001, 31.03.2002, 31.03.2003 and 31.03.2004 for
want of required profit and free reserves.
The difficulty in timely redemption of the balance 7% RCPS was conveyed
to the Ministry of Defence, Department of Defence Production. The company reviewed and revised the
profitability projections for the next 10 years and it was proposed for
consideration to the Ministry of Finance that – [i] to grant extension of time
for redemption of outstanding 7% RCPS Capital of Rs. 989.800 millions in four equal
annual installments commencing from the financial year 2007-08 onwards and [ii]
to grant time for payment of arrears of dividend accumulated till the year
2004-05 in two equal annual installments from the financial years 2005-06
besides the payment of yearly dividend from the financial year 2005-06 on the
outstanding balance of 7% RCPS Capital and that all payments to be made within
a period of one month from adoption of accounts at the Annual General Meeting
for respective financial years. The proposal is under consideration by
Government.
During the year, the company has neither invited nor accepted any Fixed
Deposits from the Public.
DIVISION – WISE PERFORMANCE :
Shipbuilding :
The shipbuilding division of the company achieved a value of production
of Rs. 5154.500 millions during the year 2004-05 as against Rs. 4554.300
millions of the previous year.
Second Stealth Frigate of P17 series was launched on 4th
June, 2004. Production of second Destroyer of P15A series commenced on 21st
February, 2005.
On the civil front, 9th floating border outpost was delivered
to Border Security Force on 21st June, 2004. One dredger was delivered to Bhakra Beas
Management Board on 05.08.2004.
Shiprepair :
During the year 2004-05, work progressed on medium refits of two Naval
Vessels and one Coast Guard Vessel. One
Naval Vessel and One Coast Guard Vessel were completed and remaining one is
undergoing sea trial after completion of work.
Further, short refits of one Coast Guard Vessel and one Fishery Survey
Vessel were also carried out. Short Refit of one Coast Guard Vessel is in
progress. The value of Production on
account of Ship Repair was Rs. 172 millions as against Rs. 284 millions in the
previous year.
Submarine & Heavy Engineering ;
The value of Production of account of Submarine repairs was Rs. 104.500
millions as against Rs. 105.400 millions during the previous year. In addition, hull fabrication jobs for P –
15A and P – 17 projects were also carried out in East Yard and Alcock Yard.
Medium refit of one submarine has been completed on time and its
modernization is in progress. Another
order to carry out special repairs to one submarine is under execution and is
progressing satisfactorily.
FUTURE OUTLOOK :
The company has Naval orders for 3 Stealth Frigates for the P – 17
project and three Destroyers of P – 15A project. Nine BOPs have already been delivered to the BSF. The orders for 5 more BOPs are also in
place. Finalization of changes in design
asked for by BSF is in hand.
The company has been able to will an order for a Dumb Cutter Suction
Dredger for the Dredging Corporation of India Limited [DCIL] against the stiff
international competition on a global tender.
The negotiations are in hand and the order is likely to be placed
shortly.
The offshore yard facilities are being utilized for fabrication of ships
units. Structural fabrication shops and
slipways likely to become vacant after the launch of the P – 15A ships shall be
utilized for the expected orders of follow – on ships of P – 17. In order to mitigate the risks in the event
of delay in receipt of Naval orders the company is strengthening its marketing
efforts to obtain orders for non-Naval Ships including for export besides orders
for the Heavy Engineering Segment.
EXPORT PROMOTION :
While continuing efforts for export promotion, the company’s focus is on
export of a few selected types of offshore patrol vessels, offshore supply
vessels and dredgers. Company
participates in select International exhibitions and export efforts are made by
circulating product literature, advertising in leading journals on
shipbuilding, participating in global tenders etc. The company participated in Africa Aerospace & Defence – 2004
[AAD – 2004] exhibition at South Africa in September 2004, IMDEX – 2005 at
Singapore in May 2005 and India Africa Project Partnership Summit at New Delhi
in February, 2005.
ISO 9001: 2000 QUALITY MANAGEMENT SYSTEM :
ISO 9001: 2000 Quality Management System Certification is valid up to 27th
February, 2006.
Fixed Assets
Land : Leasehold & Freehold
Factory and Office Buildings
Staff Quarters
Other Civil Works
Vehicles
Furniture, Fittings
& Office Equipments
Launches and Boats
WEBSITE DETAILS
COMPANY
Mazagon Dock Limited is the
India's premier shipyard constructing warships as well as offshore platforms.
Main
activities are shipbuilding, shiprepairs and fabrication of offshore structures
with facilities situated at Mumbai and Nhava. We have the capability to build
vessels such as warships, submarines, merchant ships upto 30,000 DWT and
fabrication of well head platforms, process and production platforms and jack
up rigs. For outfitting work, the company has a large number of workshops with
sophisticated equipment and machines specific to hull fabrication and ship
construction work. Repair work is also
under taken using the available facilities.
The
Company has the manpower to implement the CAD/CAM/CIM using the latest ship
design softwares, operating from a number of work stations comprising latest
computer hardware to provide up to date design and production support,
commensurate with for the Yard's capabilities.
The
workforce is well trained and comprises of all sections of disciplines. Regular
training programmes keep the men technologically abreast of the latest
techniques of their profession.
QUALITY
ACCREDITATIONS
MAZAGON DOCK LIMITED is an ISO 9000 Company.
The Shipbuilding
Division has been accredited with ISO 9001 certification for design, development,
production, installation, servicing and repairs of ships and crafts.
The Chief Controller of Explosives (CCE) - Nagpur has similarly granted
recognition for fabrication of unfired pressure vessels.
SHIP BUILDING
MDL has constructed
a variety of ships both for the defence and the commercial sector.
In the defence sector the major customers have been the Indian Navy and the
Coast Guard. MDL has to date constructed twenty one warships and seven OPVs.
The first warship, a Leander Class Frigate, was christened INS NILGIRI and was
commissioned in 1972. Two type 1500 Submarines-SHALKI and SHANKUL have also
been built in India by MDL. The first of a new class of 6700 ton destroyers,
INS DELHI was commissioned in November 1997, and the second ship, INS MYSORE in
June 1999.
Seven 1200 tons Offshore Patrol Vessels, currently in service, were designed,
built and commissioned by MDL for the Indian Coast Guard.
MDL has developed a wide range of products for the commercial sector and has
constructed a variety of ships ranging from Offshore Supply Vessels, and
Harbour Utility Vessels/Crafts such as Tugs-15 nos., Dredgers-11 nos., 9000
Cu.M. Water Tankers-2 nos., Passenger cum Cargo Vessels-3 nos. and an
assortment of Support Vessels, Trawlers and Barges besides a Virtual jetty, a
Multi-point mooring system and Floating cranes.
The shipyard has Long standing experience in dealing with all international
classification societies both for new construction and ship repairs. The
management of MDL Welcomes translational collaborations for execution of
technically challenging projects on turnkey basis and has experience in
operating complex contracts involving many organisations and corporations in a
time bound manner.
As the lead defence shipyard of India, MDL is committed to delivering Quality
Ships, on time.
SHIP REPAIRS
Mazagon Dock is
fully geared to carry out major repairs to all type of vessels and handles a
large portion of repairs carried out in the port of Mumbai. The Company's
repair service is famous for the quality of its work and adherence to delivery
schedules.Mazagon Dock is authorised to carry out repair in Mumbai Port Trust
Premises (at dry docks, berths, outer quays and at - anchorage.) Voyage repair
facilities have been developed at Nhava Yard near Jawaharlal Nehru Port Trust
for quicker turn around of ship. Both deck and machinery repair work are
undertaken. Underwater repair can be carried out on all types of vessels upto
300 meters long (45,000 T).
Scope of repair comprises of repairs to Hull, outfitting of living and service
spaces, refurbishing and overhaul of main propulsion machinery and equipment,
auxiliaries, stabiliser and steering gear, control systems, electric
installation, fire fighting and life saving systems and equipment.
The Company has also been implementing the concept of total shipcare comprising
'maintenance-refit-repair' on offshore patrol vessels and offshore supply
vessels of the Coast Guard and ONGCL. Major repairs and modernization of Naval
Ships and SSK Submarines, and jack-up rigs are also being carried out.
HEAVY ENGINEERS
Facilities for
fabrication were established at Alcock, Mumbai and at Nhava Yard. MDL has the
capability of undertaking construction work of well head platforms, water
injection and process platforms, jack-up rigs, SBMs and other offshore
structures. Repair and maintenance jobs on offshore rigs are also undertaken at
Alcock, Jackets upto 80m. length and 2200 T. weight can be constructed. At
Nhava, Jackets upto 80m. length and 2300 T. weight, Main Decks upto 550 T.
weight and Helipads of 160 T. weight
A welding training
school develops and maintains welding techniques and procedures to acceptable
standards and continuous updation of welding techniques.
GENERAL ENGINEERING
|
PRESSURE
VESSELS |
LPG
Bullets, Mounded Bullets, Pressure Vessels with/without 'U Stamp', Towers,
Reactors |
|
PACKAGED
SKIDS |
Glycol
Regeneration Module, Chlorinator Module, Oil Recovery Module, Compressor
& Gas Turbine Modules |
|
HEAVY
FABRICATION |
Support
Structures for Heavy Equipments required for Power Plants, Refinery Plants,
Cement Plants, Windmill Towers & Nacelle Frames |
|
PORT
HANDLING EQUIPMENT |
Fabrication
of Level Luffing Cranes, Container Handling Cranes, Gantry Cranes, Quay
Cranes, Loaders/Unloaders |
COMMERCIAL
Standard Terms
and Conditions
Ship
Building (SB)
Material Purchase
(MP)
MP -
Indigenous Steel Material
MP - Capital Assets - Indigenous /
Imported
MP - Project Equipment - Indigenous
(Equipment / Machinery)
MP - Project Equipment - Imported.
(Equipment / Machinery)
Sub-Contracts (SC)
SC - Facility and Service Sub
Contract
SC - Safety
Code for Sub Contractor
Project Management
Team
PMT -
Indigenous Steel Material
PMT - Capital Assets - Indigenous /
Imported
PMT - Project Equipment - Indigenous
(Equipment / Machinery)
PMT - Project Equipment - Imported.
(Equipment / Machinery)
Ship Repairs
(SR)
Sub-Contracts
SR - Facility and Service Sub
Contract
SR - Safety
Code - for Sub Contractor
Capital Works
(CW)
CW -
Instruction to tenderers for Capital Works
Submarine (EY)
EY-STACS for
Indigenous Items & Fabrication Contractsey
EY-STACS for
Sub Contract Inside
EY-STACS for
Sub Contract Outside
Offshore Yard
(OY)
OY - Facility and Service Sub
Contract
OY - Safety
Code for Sub Contractor
Vendor Capability Report (VCR)
Formats
STACS acceptance
format for imported Equipment/ Machinery for Projects
Bid Bond / Earnest
Money Deposit.
Security Deposit
Bank Guarantee.
Format for Bank Guarantee required to
be submitted towards EMD against tender.
PRODUCTION
ACHIEVEMENTS:
The significant achievements of the company on the production front
during the year 2005-06 were:
·
Launch of the third Stealth Frigate on 27th May, 2005.
·
Keel laying of the second follow on Destroyer on 25th
October, 2005.
·
Commencing production of third follow on Destroyer on 21st
February, 2006.
·
Launch of first follow on Destroyer on 30th March,
2006.
·
Successful completion of Medium Refit-cum-modernization of
one SSK class Submarine and special repairs of another.
FINANCIAL HIGHLIGHTS:
During the year 2005-06, the Company registered a
Value of Production of Rs.5182.800 Millions as against the VOP of Rs.5406.300
Millions for the year 2004-05
The Profit (before tax) posted by the Company for the year
2005-06 is Rs.1096.900 Millions as against the Profit (before tax) of
Rs.1337.600 Millions in the previous year.
CAPITAL STRUCTURE:
The Authorised Equity Share Capital and 7% Redeemable
Cumulative Preference Share Capital (7% RCPS) of the Company as on 31st March
2006 stood at Rs.2000.000 Millions and Rs.1237.200 Millions respectively. The
Paid-Up Equity Share Capital as on 31st March 2006 remained at Rs.1992.000
Millions and that the Preference Share capital stood at Rs.989.800 Millions.
During the year there was no increase in the Authorised or Paid up Share
Capital. As stated in the report on the Accounts for the year ended 31.03.2005,
the Company could not redeem and pay four instalments of RCPS each of
Rs.247.450 Millions due on 31.3.2001, 31.3.2002, 31.3.2003 and on 31.03.2004
for want of required profit and free reserves. The difficulty in timely
redemption of the balance 7% RCPS was conveyed to the Ministry of Defence,
Department of Defence Production. The Government of India has since approved
(i) for redemption of outstanding 7% RCPS Capital of Rs.989.800 Millions in
four equal annual instalments commencing from the financial year 2007-08
onwards and (ii) for payment of arrears of dividend accumulated till the year
2005-06 in two equal annual instalments from the financial year 2006-07on the
outstanding balance of 7% RCPS Capital. Accordingly one instalment of
accumulated dividend upto the year 2005-06 on 7% RCPS capital of Rs.235.400
Millions will be paid as approved by the Govt. of India.
During the year, the company has neither invited nor accepted any Fixed
Deposits from the Public.
SHIP BUILDING:
The Ship building Division of your Company achieved a
Value of Production of Rs.4548.700 Millions during the year 2005-06 as against
Rs.5154.500 Millions of the previous year.
SHIP REPAIR: During the year 2005-06 refits of one Naval Vessel and two Coast
Guard vessels were completed. South Yard dry dock was given on hire for short
duration for dry docking of 2 Nos. Offshore Supply Vessels of ONGC. The Value
of Production on account of ship repair was Rs.6510.000 Millions as against
previous year of Rs.172.000 Millions. Due to pre-occupation of wet basin with
new construction vessels of Naval projects and availability of only one dry
dock at South Yard, the ship repair activities have been pruned down to the
repairs of MDL's own crafts and other similar commercial crafts.
SUBMARINE & HEAVY
ENGINEERING:
The Value of Production on account of Submarine
repairs was Rs.283.600 Millions as against Rs.104.500 Millions of the previous
year. In addition, Hull fabrication jobs for follow on Destroyer Project and
Stealth Frigate Project were also carried out in the East Yard and Alcock Yard.
During the year, Medium Refit cum Modernisation of one.
Submarine and special repairs to another have been completed.
FUTURE
OUTLOOK:
The Shipbuilding Division of your Company has orders
for three Stealth Frigates followon and three followon Destroyers. The progress
of construction of various ships is at satisfactory level. Order for design,
constriction and supply of one dumb cutter suction 2000 Cu. Mtr. Dredger was
received against a global tender from Dredging Corporation of India. The
Contract was signed on 24th Oct. 2005 with DCIL. The dredger is to be delivered
by December 2007.
MDL has received a prestigious order for construction of 6 Nos. Scorpene
Class Submarines of French Design. Separate contracts with the Government and
collaborators were signed in October 2005. An order to the value of Rs.9110.000
Millions has been received for Refit cum Modernisation of the remaining 2 Nos.
SSK Submarines.
EXPORT
PROMOTION:
In the field of exports, the Company's focus is on a
few selected types of Offshore Patrol Vessels, Offshore Supply Vessels and
Dredgers. Company participates in select International exhibitions and export
efforts are made by circulating product literature, advertising in leading
journals on shipbuilding, participating in global tenders etc. The Company has
a good brand image and a few enquiries from foreign customers are under
evaluation.
ISO
9001: 2000 QUALITY MANAGEMENT SYSTEM:
MDL has been assessed and approved in accordance
with the requirements of ISO 9001:2000 Quality Management System and has been
awarded ISO 9001:2000 certificate by IRQS. The certification was revalidated in
April 2006 and it is valid upto February, 2009.
QUALITY
CIRCLES:
The Company is committed to implementation of
Quality Circle Philosophy. Accordingly in the 1st Phase 10 Quality Circles have
been formed. These Quality Circles have been solving day-today problems in
their respective working areas as per the QC methodology taught to them. One of
the 10 Quality Circles was selected for giving presentation at NCQC '05
(National Convention of Quality Circle, 2005) in December 2005 at Kerala. This
Quality Circle was awarded the 'Distinguished Case Study' Trophy at the
National Level convention.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.41.67 |
|
UK Pound |
1 |
Rs.83.41 |
|
Euro |
1 |
Rs.56.61 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
41 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|