1. Summary Information

		Country	India
Company Name	Hindustan Shipyard Limited	Principal Name 1	Mr. Nikunj Kishore Mishra
Status	Moderate	Principal Name 2	Mr. Rakesh Mahajan
		Registration #	01-076711
Street Address	Gandhigram, Gandhigram Post Office, Visakhapatnam – 530005, Andhra Pradesh, India
Established Date	21.01.1952	SIC Code	--
Telephone#	91-891-2577404/ 2577437/ 2577659	Business Style 1	Undertaking ship repairs, construction/fabrication of offshore platform, etc.
Fax #	91-891-2577502/ 2577356/ 667	Business Style 2	--
Homepage	www.hsl.nic.in www.hsl.gov.in	Product Name 1	--
# of employees	Not Available	Product Name 2	--
Paid up capital	Rs.3019,922,000/-	Product Name 3	--
Shareholders	Government (Central and State)- 100%	Banking	Indian Bank
Public Limited Corp.	No	Business Period	60 years
IPO	No	International Ins.	--
Public Enterprise	No	Rating	B (26)
Related Company
Relation	Country	Company Name	CEO
Holding Company	--	Hon’ble President of India	--
Note	--

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	8,099,859,000	Current Liabilities	8,571,940,000
Inventories	3,316,524,000	Long-term Liabilities	7,208,707,000
Fixed Assets	768,377,000	Other Liabilities	2,808,270,000
Deferred Assets	0,000	Total Liabilities	18,588,917,000
Invest& other Assets	124,007,000	Retained Earnings	950,000
		Net Worth	(6,280,150,000)
Total Assets	12,308,767,000	Total Liab. & Equity	12,308,767,000
Total Assets (Previous Year)	10,389,953,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	5781,256,000	Net Profit	549,999,000
Sales(Previous yr)	5417,217,000	Net Profit(Prev.yr)	23,243,000

MIRA INFORM REPORT

Report Date :

06.03.2012

IDENTIFICATION DETAILS

Name :	HINDUSTAN SHIPYARD LIMITED
Registered Office :	Gandhigram, Gandhigram Post Office, Visakhapatnam – 530005, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.01.1952
Com. Reg. No.:	01-076711
Capital Investment / Paid-up Capital :	Rs.3019.922 Millions
CIN No.: [Company Identification No.]	U74899AP1952GOI076711
TAN No.: [Tax Deduction & Collection Account No.]	VPNH00128C/ VPNH00131F/ VPNH00129D
PAN No.: [Permanent Account No.]	AAACH4275H/ AAACH4275P
Legal Form :	A Government of India Company having limited Liability.
Line of Business :	Undertaking ship repairs, construction/fabrication of offshore platform, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a government of India Company. Financial position of the company appears to be weak. There appears huge accumulated losses recorded by the company. However, Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. Though there appears huge accumulated losses, the company can be considered for business dealings at usual trade terms and conditions, since it is a government company.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered/ Head office and Factory:	Gandhigram, Gandhigram Post Office, Visakhapatnam – 530005, Andhra Pradesh, India
Tel. No.:	91-891-2577404/ 2577437/ 2577659
Telefax No.:	91-891-2577502/ 2577356/ 667
E-Mail :	cmdoffice.hsl@gov.in hsl@hslvizag.com
Website :	www.hsl.nic.in www.hsl.gov.in
Regional Office :	C/o. Piccasso, 202 Churchgate Chambers, 5, New Marine Lines, Mumbai 400020, Maharashtra
Tel. No.:	91-22-22624560 / 22615119
Telefax No.:	91-22-22871166

DIRECTORS

(AS ON 16.09.2011)

Name :

Mr. Nikunj Kishore Mishra

Designation :

Chairman cum Managing Director

Address :

Nauka Shipyard House, 8 Harbour Park, Vishakapatnam – 530003, Andhra Pradesh, India

Date of Birth/Age :

21.11.1955

Date of Appointment :

01.08.2011

DIN No.:

03589730

Name :

Mr. Rakesh Mahajan

Designation :

Whole Time Director

Address :

03, Varuna park, Waltair Uplands, Vishakapatnam – 530003, Andhra Pradesh, India

Date of Birth/Age :

22.09.1962

Date of Appointment :

01.12.2008

DIN No.:

02443053

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899AP1952GOI076711	HINDUSTAN SHIPYARD LIMITED	Whole-time director	01-12-08	01-12-08	-	Active	NO
2	U71120WB1967GOI027014	CENTRAL INLAND WATER TRANSPORT CORPN LIMITED	Director	24-08-09	24-08-09	15-07-10	Active	NO

Name :

Mr. Kollengode Sivaramakrishnan Subramanian

Designation :

Whole Time Director

Address :

02, Varuna park, Waltair Uplands, Vishakapatnam – 530003, Andhra Pradesh, India

Date of Birth/Age :

07.10.1954

Date of Appointment :

04.06.2011

DIN No.:

03549448

Name :

Mr. Gyanesh Kumar

Designation :

Director

Address :

Q.T.R. No.8-2, Sector 12, A Block, R K Puram, New Delhi – 110066, India

Date of Birth/Age :

27.01.1964

Date of Appointment :

22.02.2010

DIN No.:

02046823

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U35100MH1934GOI002079	MAZAGON DOCK LIMITED	Director	31-12-07	31-12-07	-	Active	NO
2	L32309KA1954GOI000787	BHARAT ELECTRONICS LIMITED	Director	29-09-08	31-12-07	27-01-10	Active	NO
3	U35111WB1934GOI007891	GARDEN REACH SHIPBUILDERS ENGINEERS LIMITED	Nominee director	31-12-07	31-12-07	-	Active	NO
4	U14292AP1973GOI001660	MISHRA DHATU NIGAM LIMITED	Director	28-01-10	28-01-10	-	Active	NO
5	U74899AP1952GOI076711	HINDUSTAN SHIPYARD LIMITED	Director	22-02-10	22-02-10	-	Active	NO

Name :

Mr. Nadella Niranjan Kumar

Designation :

Director

Address :

Delhi Suite Naval Officer Mess Varuna, New Delhi – 110010, India

Date of Birth/Age :

24.03.1954

Date of Appointment :

22.02.2010

DIN No.:

02946230

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U35111WB1934GOI007891	GARDEN REACH SHIPBUILDERS ENGINEERS LIMITED	Nominee director	30-12-09	30-12-09	Active	NO
2	U74899AP1952GOI076711	HINDUSTAN SHIPYARD LIMITED	Director	22-02-10	22-02-10	Active	NO

Name :

Dr. Devi Singh

Designation :

Director

Address :

Indian Institute of Mangement Prabandh Nagar, off Sitapur Road, Lucknow – 226103, Uttar Pradesh, India

Date of Birth/Age :

02.09.1952

Date of Appointment :

18.05.2011

DIN No.:

00015681

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27104HR1996PTC033093	SUNBEAM AUTO PRIVATE LIMITED	Director	16-03-01	16-03-01	21-05-10	Active	NO
2	U35201MH1990GOI223738	KONKAN RAILWAY CORPORATION LIMITED	Director	17-01-05	17-01-05	16-01-08	Active	NO
3	U74899DL1974GOI007227	RITES LIMITED	Director	01-11-06	01-11-06	31-10-09	Active	NO
4	L40101DL1969GOI005095	RURAL ELECTRIFICATION CORPORATION LIMITED	Director	10-06-11	07-01-08	-	Active	NO
5	U40101DL2004PTC148280	ENERGY INFRATECH PRIVATE LIMITED	Director	29-09-08	31-03-08	-	Active	NO
6	L34101HR1985PLC020934	MUNJAL SHOWA LIMITED	Director	07-08-09	23-09-08	-	Active	NO
7	U80300DL2007NPL166745	NATIONAL INSTITUTE OF FOOD TECHNOLOGY ENTREPRENEURSHIP AND MANAGEMENT	Director	30-06-09	30-06-09	-	Under liquidation	NO
8	U66030MH2006PLC165287	FUTURE GENERALI INDIA INSURANCE COMPANY LIMITED	Director	25-08-11	15-11-10	-	Active	NO
9	U66010MH2006PLC165288	FUTURE GENERALI INDIA LIFE INSURANCE COMPANY LIMITED	Director	25-08-11	15-11-10	-	Active	NO
10	U74899AP1952GOI076711	HINDUSTAN SHIPYARD LIMITED	Director	18-05-11	18-05-11	-	Active	NO

Name :

Mr. Nagendra Prasad Kestur Lakshminarasimhiya

Designation :

Whole time Director

Address :

P 600 C, Nofra – II, Airport Road, Dabolim – 403801, Goa, India

Date of Birth/Age :

14.11.1955

Date of Appointment :

19.12.2011

DIN No.:

05145782

Email :

klnprasad@hotmaail.com

KEY EXECUTIVES

Name :	Mr. Inaitula Baig
Designation :	Secretary
Address :	N-2, HSL Colony, Gandhigram, Visakhapatam – 530 005, Andhra Pradesh, India
Date of Birth/Age :	28.04.1968
Date of Appointment :	04.04.2008
PAN No.:	AFFPB8841N

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 16.09.2011)

Names of Shareholders	No. of Shares
Hon’ble President of India	3019918
Nikunj Kishore Mishra	1
Rakesh Mahajan	1
Gyanesh Kumar	1
S K Subramanian	1
Total	3019922

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Government (Central and State)	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Undertaking ship repairs, construction/fabrication of offshore platform, etc.

Products :

Item Code No. (ITC Code)	89011001
Product Description	Ships
Item Code No. (ITC Code)	89019001
Product Description	Bulk Carriers
Item Code No. (ITC Code)	89040000
Product Description	Tugs

PRODUCTION STATUS (AS ON 31.03.2011):-

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Ship Construction	Not Applicable	6.5 Pioneer Class vessels of 21500 DWT each.	2.88 Pioneer Class vessels (287.69 Standard Pioneer Units)
Well Platforms	2 Well Platforms per annum (8000 MT of structural fabrication)	2 Well Platforms per annum	Nil
Rated Capacity as Recknoed by consultant	-	3.5 Pioneer Class vessels of 21500 DWT each.	--

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Indian Bank,

30-9-3, Sarada Street, Dabagardens, Visakhapatnam - 530020, Andhra Pradesh, India

· State Bank of India

· UCO Bank

· Canara Bank

· Syndicate Bank

· Corporation Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee Term Loans Banks Secured	0.000	346.702
Other Debts Secured	931.982	617.265
Total	931.982	963.967
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans Banks Unsecured	1732.300	1732.300
Rupee term loans other Unsecured	0.000	1498.700
Other Debts Unsecured	3722.125	205.282
Interests accrued due other debts unsecured	822.300	2502.097
Total	6276.725	5938.379
NOTE: (A) Loan from Government of India (B) Gol loan in perpetuity for current year and Inter corporate loans from port trust for Previous year.

Banking Relations :	--
Auditors :
Name :	G R Kumar and Company Chartered Accountant
Address :	9, Merry Life Apartment, Doctors, Colony, Peda Waltair Visakhapatnam – 530017, Andhra Pradesh, India
PAN No.:	AABFG9812F
Holding Company :	Hon’ble President of India

CAPITAL STRUCTURE

(AS ON 16.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
3040000	Equity Share	Rs.1000/- each	Rs.3040.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3019922	Equity Share	Rs.1000/- each	Rs.3019.922 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		3019.922	3019.922	3019.922
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.950	0.950	0.950
4] (Accumulated Losses)		(9301.022)	(9851.021)	(9874.264)
NETWORTH		(6280.150)	(6830.149)	(6853.392)
LOAN FUNDS
1] Secured Loans		931.982	963.967	682.413
2] Unsecured Loans		6276.725	5938.379	5591.464
TOTAL BORROWING		7208.707	6902.346	6273.877
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		928.557	72.197	(579.515)
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		768.377	687.715	638.785
Capital work-in-progress		124.007	124.705	51.596
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	1101.863	1059.208
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3316.524	4788.976	3721.531
	Sundry Debtors	1396.024	1100.661	1172.232
	Cash & Bank Balances	3058.620	603.156	1154.709
	Other Current Assets	1105.027	635.428	330.829
	Loans & Advances	2540.188	1347.449	1290.902
Total Current Assets		11416.383	8475.670	7670.203
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1672.098	2190.337	1348.715
	Other Current Liabilities	6899.842	6841.446	6984.233
	Provisions	2808.270	1285.973	1666.359
Total Current Liabilities		11380.210	10317.756	9999.307
Net Current Assets		36.173	(1842.086)	(2329.104)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		928.557	72.197	(579.515)

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5781.256	5417.217	3671.371
		Other Income	835.487	967.169	967.273
		TOTAL (A)	6616.743	6384.386	4638.644
Less	EXPENSES
		Consumption Materials Changed Inventories	4898.126	3551.011
		Manufacturing Service Costs	64.074	67.610
		Contract Costs	797.843	943.882
		Employee Related Expenses	2585.040	1303.836	5431.731
		Administrative, Selling and Other Expenses	912.868	283.957
		Prior Period Items	56.278	34.598
		Extraordinary Items	(4569.585)	(51.211)
		TOTAL (B)	4744.644	6133.683	5431.731
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1872.099	250.703	(793.087)
Less	FINANCIAL EXPENSES (D)		143.464	524.155	504.913
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1728.635	(273.452)	(1298.000)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		76.773	64.575	69.267
	PROFIT BEFORE TAX (E-F) (G)		1651.862	(338.027)	(1367.267)
Less	TAX (H)		1101.863	(361.127)	32.828
	PROFIT AFTER TAX (G-H) (I)		549.999	23.243	(1400.095)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(9851.021)	(9874.264)	(8474.169)
	BALANCE CARRIED TO THE B/S		(9301.022)	(9851.021)	(9874.264)
	EARNINGS IN FOREIGN CURRENCY		1164.090	1489.267	383.391
	IMPORTS
		Raw Materials, Components and Spares Parts and Capital Goods	2988.891	4062.008	2379.064
	TOTAL IMPORTS		2988.891	4062.008	2379.064
	Earnings Per Share (Rs.)		182.12	8.00	(485.00)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.31	0.36	(30.18)
Net Profit Margin (PBT/Sales)	(%)	28.57	(6.24)	(37.254)
Return on Total Assets (PBT/Total Assets}	(%)	13.56	(3.69)	(16.46)
Return on Investment (ROI) (PBT/Networth)		(0.26)	0.05	0.20
Debt Equity Ratio (Total Liability/Networth)		(2.96)	(2.52)	(2.37)
Current Ratio (Current Asset/Current Liability)		1.00	0.82	0.77

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The Government has sanctioned Financial Restructuring package of Rs.8249.000 Millions and the company has successfully implemented the financial restructuring package and cleared legacy liabilities. With the implementation of financial restructuring package, the legacy liabilities have been taken care of. However, the financial health of the Company continues to be poor with accumulated losses of Rs.9301.000 Millions and a negative networth of Rs.6281.100 Millions as on 31st March, 2011.

Company being an old and premier shipyard of the country has been striving towards better productivity and optimum utilization of resources. The total Income of the company during the year is Rs 6378.700 Millions as compared to Rs 6511.600 Millions for the previous year. The company recorded a profit of Rs 549.900 Millions as against Rs.23.200 Millions of previous year due to accounting of Rs 4526.800 Millions grant in aid received from Government of India as Financial Restructuring package.

The major highlights of the year 2010 -11 are as follows

· The Ministry has sanctioned Rs.8249.000 Millions financial restructuring package and the same has been implemented successfully.

· The company concluded contracts for an order value approx. Rs.7980.000 Millions with Coast Guard, Indian Navy and Kandla Port Trust. However the order value is not sufficient for the Yard to sustain. The company desperately needs to secure high value orders from Indian navy after its transfer of Administrative control from Ministry of Shipping to Ministry of Defence.

· Some of the noteworthy achievements during the year are as follows

i. Two 53 K bulker vessels were delivered to M/s. GML.

ii. Six vessels of different categories were launched/ floated.

iii. Keels were laid for five new vessels.

iv. Repair of ONGC Jack up Rig is at an advanced stage of completion and targeted to be delivered by the end of Nov 2011.

v. Repair of twenty three vessels were undertaken during the year 2010-11 including two warships viz. INS Kumbhir and INS Sandhayak

The company is committed to create value addition by not only achieving path breaking achievements in shipbuilding and ship repairs but also developing indigenous repair capabilities of Naval Submarines and off shore rigs of the country.

The present shipbuilding order book position comprises 24 vessels out which 14 vessels are at various stages of their construction. The focus of the yard during the next couple of years will be on completion of the orders of M/a. GML and five IPVs for Indian Coast Guard. The other orders would also be attended to with renewed planning and Production norms to keep the workshops and workmen optimally utilised. However I regret to inform that with the present order book most workshops will remain idle in near future unless some high value orders are secured by company.

CAPITAL STURCTURE

The authorized equity share capital of the company as on 31 Mar 2011 stood at Rs 3040.000 Millions against which the paid up Equity Share Capital as on 31 Mar 2011 is Rs.3019.900 Millions.

FINANCIAL RESTRUCTURING

The Ministry has sanctioned Rs.8249.000 Millions towards financial restructuring package as mentioned below:

i) An amount of Rs.4526.800 Millions has been given as grants in aid for clearance of old outstanding liabilities towards banks, employee arrears, tax arrears and other liabilities.

ii) The existing Government loan with interest and Government guarantee fee against loan from SBI amounting to Rs 3722.200 Millions has been converted as loan in perpetuity without interest.

PERFORMANCE HIGHLIGHTS

Financial Parameters

The company has recorded a Profit Before Tax (PBT) of Rs 1651.800 Millions during the year 2010-11. This increase in PBT is due to accounting of grant-in-aid of Rs 4526.800 Millions as income which has been received from Government of India towards Financial Restructuring.

Value of Production

The company achieved a value of production of Rs 6038.400 Millions during the FY 2010-11.

FUTURE OUTLOOK

Subject is strategically located on the East Coast of India. The yard has been transferred from Ministry of Shipping to Ministry of Defence in February, 2010. The Yard has been identified for construction of war ships and submarines. The present order book will be completed by Aug 2013 and thereafter company will construct mainly defence vessels. The surplus capacity, if any, available would be utilized for commercial vessels. In coming years there is a plan to modernize the infrastructure in order to make this yard viable for construction of high value orders from Navy viz., War ships, Submarines and other amphibious ships. With the capacity improvement and modernization of the Yard Company will grow as one of the major Defence Shipyard in the Country.

CONTINGENT LIABILITIES

Particulars	31.03.2011	31.03.2010
	(Rs. In millions)
a. Irrevocable letters of credit outstanding	463.971	1058.311
b. Counter guarantees given to banks for guarantees issued on behalf of the company	1299.640	568.048
c. Estimated amount of contracts remaining to be executed on capital account and not provided for	0.000	29.151
d. Demands raised against the company by various authorities, contested at various courts, appellate authorities etc and not provided for:
i) Property tax on commercial complex for the years from 1984-85 to 1994-95.	1.339	1.339
ii) Penal interest on belated remittances of Provident Fund contributions during the period from May 2002 to Feb., 2005, contested u/s 7(i) of EPF & MP Act, 1952 . HSL had approached Hon’ble High Court of Andhra Pradesh after dismissal of appeal by PF Appellate Tribunal. The Hon’ble High Court has issued stay orders on PF Appellate Tribunal order subject deposit of a sum of Rs. 35.00 lakhs by the company . Accordingly , HSL had deposited the said amount. Presently , the case is pending in Hon’ble High Court of Andhra Pradesh.	10.978	14.478
iii) (a) ESI dues in respect of ‘C’ series workmen for the period from 1-4-1998 to 30-9-2000 together with interest thereon ( Rs.6.64 lakhs paid under protest grouped under deposit recoverable) (b) ESI dues in respect of temporary workmen for the period from April, 1998 to Oct., 1999, contractors contribution for the period from Apr., 1985 to March, 1993.	7.048 18.024	6.649 18.024
iv) Central Excise duty on P-BDE jackets manufactured and delivered to ONGC. The amount has been paid to Excise authorities in 2010-11	0.000	11.451
v) Service tax demand in respect of INS Sindhukeerti	208.130	208.130
vi) Demands of various suppliers of goods and services	45.700	27.200
vii) Non Agricultural Land Assessment tax demands for the year 2000-01	0.454	0.454
viii) Demands in respect of service matters of employees having financial impact.	138.192	5.246
Total	429.865	292.971
e. Claims against the company, which are under arbitration and not provided for
i) Counter –Claims of ONGC towards liquidated damages, penal interest and interest on interest in respect of construction of well platforms (net of provision)	863.800	863.200
ii) Claims of Essar Oil Limited (EOL) towards OPF works (net of provision made of Rs.437.033 Millions and counter claim of HSL on ONGC of Rs.76.900 Millions).	919.640	860.900
iii) Recognition of income in earlier years towards escalation and extra jobs for VC 1120, pending finalization of arbitration award.	12.915	12.915
iv) Recognition of income (net of provision) in earlier years towards mark-up on materials procured and works executed in respect of offshore platforms for ONGC, pending finalization of arbitration.	66.939	66.939
Total	1863.294	1803.954

Form 8

Corporate identity number of the company	U74899DL1952GOI002064
Name of the company	HINDUSTAN SHIPYARD LIMITED
Address of the registered office or of the principal place of business in India of the company	209 and 209 A, Vikram Tower, 16 Rajendra Place, New Delhi – 110008, India hsl@hslvizag.com
This form is for	Modification of charge
Type of charge	· Immovable Property · Book Debts · Movable Property (not being pledge) · Floating Charge
Particular of charge holder	Indian Bank, 30-9-3, Sarada Street, Dabagardens, Visakhapatnam - 530020, Andhra Pradesh, India visakhapatnam@indianbank.co.in
Nature of instrument creating charge	Letter issued Indian Bank, Dabagardens, Visakhapatnam in connection reduction in the limits.
Date of instrument Creating the charge	18.04.2011
Amount secured by the charge	Rs.400.000 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest Interest rate ie., Base Rate + 0.50% Terms of repayment No change in terms of repayment Margin For Import Letter of Credit - Cash Margin: 5% Extent and operation of the charge It is a continuous charge until repayment of entire dues by the Company Others Nature of Facilities: Import Letter of Credit Limit of Rs.150.000 Millions and Overdraft Limit of Rs.250.000 Millions.
Particulars of the property charged	First charge on fixed Assets and First and continuous charge on all the present and future current assets such as Inventory, Book Debts, Receivables, Security Deposits etc. Hypothecation of Goods covered under the LC
Particulars of the present modification	The existing Import Letter of Credit Limit of Rs.950.000 Millions has been reduced to Rs.150.000 Millions and there is no change in Overdraft Limit of Rs.250.000 Millions Now, the Overall limits has been reduced to Rs.400.000 Millions under this Charge ID. All other terms and conditions are unaltered.

Fixed Assets

· Land

· Buildings

· Railway sidings  

· Plant and Machinery

· Slipways and Fitout warf

· Dry Dock

· Wet basin

· Furniture

· Boats and launches

· Motor vehicles

· Roads and Compound walls

· Housing Estate

· Hospital and other Equipment

· Electrification of Buildings

· Berth for well platforms

· Building dock

WEBSITE DETAILS:

Subject is located in the picturesque port city of Visakhapatnam on the East coast of India. The shipyard is easily accessible by direct air, sea, rail and road connections from India and Abroad. The foundation stone of the shipyard was laid on June 22, 1941 by Dr. Rajendra Prasad who later became the first President of India. Today, HSL is a fully owned Government of India Undertaking under the Administrative control of the Ministry of Defence

SIX DECADES OF WORLD CLASS COMPETENCE

Subject is nation’s premier shipbuilding organisation catering to the needs of shipbuilding, ship repairs inclusive of sophisticated and state of art submarine retrofitting and construction of offshore structures.  It is a ISO 9001 2008 company and has excellent infrastructure, skilled workforce, rich experience and expertise in building and repairing ships of all types.

The yard has built 150 ships and repaired nearly 1800 ships and can offer the most comprehensive services under one roof in design, construction, conversion and repairs.

By making bold investments in fostering talent and upgrading its technologies and facilities, company is making great strides towards becoming a leader in shipbuilding and ship repairs. It has an excellent track record of reliability and quality of product and workmanship which has stood the test of time.

DESIGN CAPABILITY

Company has well equipped design facility with latest TRIBON 3M and AUTOCAD 2008 shipbuilding software. HSL has also done a number of in-house designs and built ships on these designs for various clients. The design department has nearly 50 full time engineers working in support of various shipbuilding and ship repair activities of the yard. 

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 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.49.35
UK Pound	1	Rs.78.68
Euro	1	Rs.65.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.