MIRA INFORM REPORT

Report Date :

28.10.2013

IDENTIFICATION DETAILS

Name :	MAZAGON DOCK LIMITED
Registered Office :	Dockyard Road, Mazagon, Mumbai - 400 010, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	26.02.1934
Com. Reg. No.:	11-002079
Capital Investment / Paid-up Capital :	Rs. 1992.000 Millions
CIN No.: [Company Identification No.]	U35100MH1934GOI002079
TAN No.: [Tax Deduction & Collection Account No.]	BLRM00118G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in ship building, ship repairing, and fabricating offshore structures for the defense and the commercial sectors.
No. of Employees :	Information declined by management

RATING & COMMENTS

MIRA’s Rating :

Aa (72)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 73000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exists
Comments :	Subject is an Union Government Company. It is a well established and a reputed company having fine track record. There appears slight dip in the net profitability of the company during 2013. However, networth of the company is good. The lenders and creditors can be confident of their exposures in the company, subject being a government company. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long-Term Rating = AAA
Rating Explanation	Highest degree of safety and lowest credit risk
Date	09.10.2012

Rating Agency Name	CRISIL
Rating	Short-Term Rating = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk
Date	09.10.2012

Note: CRISIL Maritime grading list has provided Mazagon Dock Limited with grade 1.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

Management Non – Cooperative (91-22-23760561)

LOCATIONS

Registered Office / Corporate Office :	Dockyard Road, Mazagon, Mumbai - 400 010, Maharashtra, India
Tel. No.:	91-22-23775562 (20 Lines)/ 23781561/ 23713451/ 23730660/ 23726293 / 3762000/ 23763000/ 23764000
Fax No.:	91-22-23738159 / 23738147 / 23738151 / 23738333 / 23738340 / 23738338
E-Mail :	mdlind.mazdock@gems.vsnl.net.in gmjaychandra@mazagon.gov.in eacmdmdl@vsnl.com ess2006@gamil.com
Website :	http://www.mazagondock.gov.in
Regional Office:	Shipyard House, A1/314, Safdarjung Enclave, New Delhi-110 029, India
Tel. No.:	91-11-26714496 / 26108941
Fax No.:	91-11-26108940
Overseas Office 1 :	Embassy of India, MDL Wing, 4, Ulitsa Vorontsovo Polye, Moscow - 105064, Russia
Tel. No.:	91-007 – 495 – 9358689
Fax No.:	91-007 – 495 – 9171127
E-Mail :	mdl@indianembassy.ru
Overseas Office 1 :	Indian Submarine Liaison Team, 19-21 Rue Du Colonel Perrie – A Via 75737, Paris Cedex 15, France
Tel. No.:	91-33-0141082318
Fax No.:	91-33-0141082051

DIRECTORS

As on 31.03.2013

WHOLE TIME DIRECTORS:	RAdm R.K. Shrawat, AVSM, IN (Retd.) Chairman and Managing Director Cdr P.R. Raghunath, IN.(Retd. ) Director (Shipbuilding). Shri M. Selvaraj, Director (Finance) Cmde R. Anand, IN(Retd.) Director (CP and P)
PART-TIME OFFICIAL DIRECTORS:	Mr. Ashok K.K. Meena, Joint Secretary (NS) Ministry of Defence. Mr. Prem Kumar Kataria, Addl,FA(K) and Jt. Secretary, Ministry of Defence
PART-TIME NON-OFFICIAL DIRECTORS:	Mr. V.V.R. Sastry Prof. S.L. Bapat Prof. Pankaj Chandra Mr. Pankaj Agarwal

KEY EXECUTIVES

PERMANENT SPECIAL INVITEE:	VAdm K.R. Nair, IN, CWP and A RAdm Anil Kumar Saxena, IN, DGND Mr. Rajnish Kumar, Addl. FA and JS(RK) Dr. V Bhujanga Rao, DS, CCR andD (NSIC) DRDO
SPECIAL INVITEES:	RAdm. Vineet Bakshi, CMD, GSL RAdm. A.K. Verma, CMD, GRSE

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.08.2011

Names of Shareholders	No. of Shares
President of India	19919995
Rajkumar Singh	1
Gyanesh Kumar	2
Prem Kumar Kataria	1
Vadm H.S. Malhi	1
Total	19920000

As on 25.08.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Government [Central and State]	99.99
Directors or relatives of Directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in ship building, ship repairing, and fabricating offshore structures for the defense and the commercial sectors.

Products / Services:

Item Code No. (ITC Code)	89050000
Product Description	Offshore Platform Fabrication
Item Code No. (ITC Code)	89060000
Product Description	Ship Construction
Item Code No. (ITC Code)	97900000
Product Description	Ship Repairs and General Engineering

GENERAL INFORMATION

No. of Employees :	Information declined by management
Bankers :	State Bank of India, Consortium Commercial Branch, G. N. Vaidya Branch, Mumbai-400001, Maharashtra, India

Banking Relations :
Auditors :
Name :	Ford, Rhodes, Parks and Company Chartered Accountants

CAPITAL STRUCTURE

As on 31.03.2013

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
	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

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1992.000	1992.000
(b) Reserves & Surplus	16150.900	13193.700
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	18142.900	15185.700
(3) Non-Current Liabilities
(a) long-term borrowings	814.900	817.100
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	3441.000
(d) long-term provisions	1908.600	1324.900
Total Non-current Liabilities (3)	2723.500	5583.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	12557.300	18949.200
(c) Other current liabilities	220298.600	202077.600
(d) Short-term provisions	1715.200	1722.500
Total Current Liabilities (4)	234571.100	222749.300
TOTAL	255437.500	243518.000
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1161.400	1143.900
(ii) Intangible Assets	98.900	89.700
(iii) Capital work-in-progress	782.100	381.500
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	60.000	60.000
(c) Deferred tax assets (net)	795.900	447.300
(d) Long-term Loan and Advances	3423.400	3442.700
(e) Other Non-current assets	1422.100	1571.000
Total Non-Current Assets	7743.800	7136.100
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	143707.900	138192.700
(c) Trade receivables	3944.600	2924.900
(d) Cash and cash equivalents	60047.900	52160.500
(e) Short-term loans and advances	38873.500	41599.000
(f) Other current assets	1119.800	1504.800
Total Current Assets	247693.700	236381.900
TOTAL	255437.500	243518.000

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		1992.000
2] Share Application Money		0.000
3] Reserves & Surplus		9408.200
4] (Accumulated Losses)		0.000
NETWORTH		11400.200
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		191.000
TOTAL BORROWING		191.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		11591.200
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1147.800
Capital work-in-progress		3095.600
INVESTMENT		60.000
DEFERREX TAX ASSETS		0.000
OTHER ASSETS		65.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	121662.900
	Sundry Debtors	3079.700
	Cash & Bank Balances	46105.200
	Other Current Assets	1134.200
	Loans & Advances	45863.100
Total Current Assets		217845.100
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12837.700
	Other Current Liabilities	196723.000
	Provisions	1061.600
Total Current Liabilities		210622.300
Net Current Assets		7222.800
MISCELLANEOUS EXPENSES		0.000
TOTAL		11591.200

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Turnover	22906.400	25236.900	26114.100
		Other operating revenue	407.500	147.100	276.200
		Other Income	5289.100	5405.200	1839.900
		TOTAL (A)	28603.000	30789.200	28230.200
Less	EXPENSES
		Cost of Materials Consumed	9574.700	12210.100	11636.800
		Changes in Inventory of Work-in-progress	293.900	(1016.000)	0.000
		Employees Benefit Expenses	6054.200	5908.200	6114.700
		Sub-Contract	989.400	1094.400	1869.000
		Power & Fuel	170.200	112.700	111.600
		Other expenses
		(a) Project related	3197.600	4329.000	3756.900
		(b) Others	1122.800	1122.700	913.800
		Adjustment for Expenses Transferred to Fixed Assets	(33.000)	(30.600)	(30.600)
		Provisions made	921.500	1.200	70.100
		Prior Period Adjustments	(232.600)	6.100	0.100
		TOTAL (B)	22058.700	23737.800	24442.400
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6544.300	7051.400	3787.800
Less	FINANCIAL EXPENSES (D)		9.000	2.200	1.700
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6535.300	7049.200	3786.100
Less/ Add	DEPRECIATION/ AMORTISATION (F)		146.400	131.400	125.600
	PROFIT BEFORE TAX (E-F) (G)		6388.900	6917.800	3660.500
Less	TAX (H)		2261.700	1974.700	1225.300
	PROFIT AFTER TAX (G-H) (I)		4127.200	4943.100	2435.200
	IMPORTS
		Raw material including machinery, equipment for construction of ships, submarine, repairs and other production jobs	19729.000	14121.300	14483.700
		Stores & Spares	0.000	6.700	5.500
		Capital Goods	0.000	15.000	0.900
	TOTAL IMPORTS		19729.000	14143.000	14490.100
	Earnings Per Share (Rs.)		207.19	248.15	121.76

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	14.43	16.05	8.63
Net Profit Margin (PBT/Sales)	(%)	27.40	22.47	13.87
Return on Total Assets (PBT/Total Assets}	(%)	2.52	2.85	1.67
Return on Investment (ROI) (PBT/Networth)		0.35	0.46	0.32
Debt Equity Ratio (Total Debt /Networth)		0.04	0.05	0.02
Current Ratio (Current Asset/Current Liability)		1.06	1.06	1.05

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: NOT AVAILABLE

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS
Bench:- Bombay
Stamp No:-	CAWST/1802/2013	Failing Date:-	17/01/2013	Reg. No.:-	CAW/166/2013	Reg. Date:-	17/01/2013
		Main Matter
Stamp No.:-	WPST/32104/2011		Reg. No.:-	WP/10551/2011
Petitioner:-	KAARYUNYA MARIFAB ENTERPRISES		Respondent:-	MAZAGON DOCK LIMITED
Petn.Adv:-	KAARYUNYA MARIFAB ENTERPRISES
District:-	MUMBAI
Bench:-	Division
Status:-	Pre-Admission		Stage:-	For Circulation (Civil side)
Coram:-	HON'BLE SHRI JUSTICE A.S. OKA HON'BLE MRS. JUSTICE MRIDULA BHATKAR
Last Date:-	08/04/2013
Last Coram:-	HON'BLE SHRI JUSTICE A.S. OKA HON'BLE MRS. JUSTICE MRIDULA BHATKAR
Act:-	Micro, Small & Medium Enterprise Dev. Act

FINANCIAL HIGHLIGHTS:

The Value of Production for the Financial Year 2012-13 is Rs.22906.400 Millions as against Rs.25236.900 Millions in the previous year. The Profit before tax is Rs. 6388.900 Millions for 2012-13 as against Rs. 6917.800 Millions in the previous year.

DIVISION-WISE PERFORMANCE:

SHIPBUILDING:

The Shipbuilding Division of the Company achieved a Value of Production of Rs. 9781.400 Millions for 2012-13 as against Rs.16388.200 Millions of the previous year.

SUBMARINE:

The Value of Production on account of Submarine Construction and Repairs was Rs.13125.000 Millions for 2012-13 as against Rs. 8848.700 Millions of the previous year.

COMMERCIAL VESSELS:

The first Multi-Support Vessel (MSV-I) was delivered to Cotemar, Mexico on 26 Sept 2012. Work on the second vessel (MSV II) is under progress to meet the requirements of International Maritime Organization and it is expected to be delivered by end 2013.

MAZDOCK MODERNISATION PROJECT

Mazdock Modernization Project (MMP), a prestigious project of the Company, is nearing completion. With the commissioning of the New Wet Basin and Heavy duty (300 Tons) Goliath Crane, the company has achieved two of the major milestones under Mazdock Modernization Project (MMP). Work on Module workshop and Cradle Assembly Shop under MMP have also achieved substantial progress. Introduction of these facilities will augment the shipyard’s capacity and effectively reduce the build period of warships/submarines. The total cost of the project is expected to be Rs.826 crore. These infrastructure facilities are being created in large part as Customer Financed Assets with funds from Naval Projects and balance with internal accruals.

OTHER INFRASTRUCTURE PROJECTS

The existing facility available at East Yard, is not adequate to meet the timelines of phased delivery of six submarines. To overcome this shortfall, it has been planned to develop a second assembly line in the unused premises of MDL. Accordingly, a Submarine Section Assembly workshop is being built at Alcock Yard part of MDL to cater to the requirement of construction of submarines.

AWARDS AND RECOGNITION

1) ‘Golden Peacock Corporate Social Responsibility Award’ for the year 2012 was awarded to MDL by Golden Peacock National Award Secretariat, New Delhi, India.

2) ‘BT-STAR PSU Excellence Award for Innovation’ for the year 2012 was awarded to MDL by Bureaucracy Today, India.

3) ‘Performance Award’ in Gold Category for 2010-11 was awarded to MDL by Indian Institute of Industrial Engineering, Mumbai, India.

BUSINESS PROMOTION:

The company has participated in various Naval & Defence related exhibitions in India as well as abroad during the year 2012-13. Details are provided under Appendix ‘G’ under the heading “Marketing & Business Development”.

FUTURE OUTLOOK

The Company continues to concentrate on meeting the demands of the Defence Sector. Substantial growth in the value of production of the company is envisaged with equipment deliveries of Mazagon Dock Procured Materials (MPM) orders of Scorpene Project, the production of Project P-15 B and the anticipated orders of P-17A. The following infrastructure augmentation are being progressed:

a) MDL modernization programme which includes creation of facilities such as additional wet basin, module workshops, heavy duty Goliath crane, cradle assembly shop and stores is expected to complete by end 2013 and

infrastructure thus created will facilitate reduction in build period of vessels and enable creation of additional assembly lines in both, shipbuilding and submarine divisions.

b) MDL is trying to acquire adjacent land so as to enable capacity augmentation. The land is geographically contiguous to Company's Alcock and South Yards which is suitable for shipbuilding activities.

INDUSTRIAL RELATIONS:

During the period, industrial relations were cordial and harmonious. In the absence of a recognized union, efforts were made to resolve the day to day industrial relations issues through deliberation with the unions on bargaining council. The memorandum of settlement (MOS), which is valid till 31 December 2016, was the mode by which the revised wages, allowances and other benefits were regulated.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT 2012-13

NATURE AND SCOPE OF THE SHIPBUILDING INDUSTRY

Shipbuilding as an industry in general is highly capital intensive requiring high technology and highly skilled labour. The Merchant shipbuilding is driven by market forces and by its very nature is highly volatile. Commercial Shipbuilding is also cyclical in nature and is influenced by a host of variables like fresh developments in the shipping industry, oil prices, global economic scenario, current perception, tax and government policies. Warship building addresses the maritime security requirements of the nation and is governed by threat perceptions and strategic decisions. Warships are highly complex and potent platforms with defence technology changing very rapidly. To keep pace with the state-of-the-art technology is one of the difficult challenges in warship design and construction.

Warships are custom-built platforms and the build period can range anywhere between 6-8 years. A fully frozen design and availability of material and equipment in time are prerequisites for reducing the build periods. Adoption of new construction approaches like Integrated Construction can help reduce the build periods. With shipyards facing stiff competition from within the industry, adopting best practices in the industry becomes imperative for survival. The Indian shipbuilding industry comprise of both public and private sector yards. With the opening of the defence production to private sector, the Company may face stiff competition and it has to gear up to meet the competition.

As a DPSU the company has a rich heritage of building world class warships and has adopted the motto of “Deliver quality ships on time”. MDL had embarked on a modernization programme of which most of the elements have been commissioned. The infrastructure upgrade now enables MDL to resort to integrated construction of destroyer-sized war vessels. With optimal utilization of the modernized infrastructure, it is envisaged that there would be a definite reduction in build periods, increased throughputs, enhanced capacities and VoP. The main objective of MDL is to build and deliver the quality warships within required time frame for its major/sole customer, the Indian Navy. The gestation period for construction of frontline warships like frigates and destroyers are quite long and in this period technology can change in leaps and bounds. Design changes in the course of building to some extent becomes an unavoidable necessity. MDL have been enjoying the privilege of receiving orders on nomination basis. However, the situation is changing quite fast on the shipbuilding front with good number of private companies stepping into the fray and vying for the orders from the Indian Navy. MDL has to inculcate new procedures/culture which could reduce the productions cycle time as well as the cost of production. A transformation in the key engineering processes, change in mind set of all the personnel involved, adoption of ‘industry best practices’ will become imperative for MDL to remain buoyant in a highly competitive environment.

Indian shipyards need to go a long way to graduate commercially and technically to the level of shipyards in developed nations. Further, the Indian industry has to be globally competitive against the best yards in the world.

The shipyard gets orders only if they are credible (deliver quality ships on time) and it can be credible only after successfully executing consistently under domestic and international competition. Unfortunately, the shipyards in

India are faced with very stiff taxes, tariff, duties, and financing charges as compared to foreign yards.

With the completion of Mazdock Modernization Project (MMP), the capacity of the yard would increase significantly andthe value of production is also expected to increase considerably. MDL as the premierdefence shipyard in the country will remain poised to continue to cater t o the maritime capability of their nation. With huge requirement for ships of various types to meet the requisite force levels of the Indian Navy, MDL is expected to be major player and contributor in the coming decades to enhance their blue water capability. The company, therefore, shall continue to make efforts to secure orders from its major customers, viz. the Indian Navy and maintain the growth momentum.

MARKETING AND BUSINESS DEVELOPMENT

The company has participated in various Naval Defence related exhibitions in India as well as abroad. During the FY 2012-13 which are as under:

Exhibition for Land, air-land and security and defence (EUROSATORY-2012) held from 11- 15 June 2012 at Paris- France.

Africa Aerospace and defence exhibition (AAD-12) held at Centurion, South Africa from 19-23 Sept.2012.

IITF-2012 Trade Fair at Pragati Maidan, New Delhi, from 14-27 November 2012.

India Maritime 2012 International exhibition at Campal Parade Ground, Panaji, Goa, from 17-20 October 2012

25^th Industrial India Trade Fair organised by Bengal National Chamber of Commerce and Industry (BNCCI) from 2-11 November 2012at Science City, Kolkata.

Aero India – 2013 from 6-10 February 2013 at Air Force Station Yelahanka, Bengaluru.

SMM-INDIA 2013 exhibition at BEC, Goregaon, Mumbai from 4-6 April 2013.

MDL Continues to concentrate on meeting the demands of the Defence Sector. Substantial growth in the value of production of the company is envisaged with equipment deliveries of Mazagon Dock Procured Materials (MPM) orders of Scorpene Project, the production of Project P-15 B and the anticipated orders of P-17A. The following infrastructure augmentation are being progressed:

MDL modernization programme which includes creation of facilities such as additional wet basin, module workshops, heavy duty Goliath crane, cradle assembly shop and stores is expected to complete by end2013 and

infrastructure thus created will facilitate reduction in build period of vessels and enable creation of additional assembly lines in both, shipbuilding and submarine divisions.

MDL is trying to acquire adjacent land so as to enable capacity augmentation. The land is geographically contiguous to Company's Alcock and South Yards which is suitable for shipbuilding activities

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Deferred payment liability to a foreign supplier against supply of materials	850.200	856.400
Less: Amount payable within 12 months 353 393 8149 8171	(35.300)	(39.300)
Total	814.900	817.100
NOTE: The deferred payment liability (non-interest bearing) of Rs.962.800 Millions, payable over 45 years from 1992-93, in equal annual installment of Rs.21.400 Millions was converted from Rouble to units of Special Drawings Rights (SDR) and stated in. The amount payable within a year of Rs.35.300 Millions includes yearly instalment payable of Rs.21.400 Millions (previous year: Rs.21.400 Millions) and Rs.13.900 Millions (previous year: Rs.17.900 Millions) towards exchange variation fluctuation. The loan amount has been reinstated at the present rate of SDR announced by RBI as on 01-04-2013, which is 82.2493for 1 SDR.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	80024486	12/12/2008 *	24,000,000,000.00	STATE BANK OF INDIA CONSORTIUM	COMMERCIAL BRANCH, G. N. VAIDYA BRANCH, MUMBAI, MAHARASHTRA - 400001, INDIA	A53209078

Note: * Date of charge modification

CONTINGENT LIABILITIES AND COMMITMENTS:

Amounts for which Company may be contingently liable:

Rs. In Millions

Particular	31.03.2013	31.03.2012
a) Estimated amount of contracts remaining to be executed on capital account.	3414.800	3253.300
b) Estimated amount of Liquidated Damages on contracts under Execution	5640.300	5251.000
c) Position of non-fund based limits utilized for:
(i) Letters of Credit	12773.800	11382.200
(ii) Guarantees and counter guarantees	1159.900	838.500
d) Indemnity Bonds issued by the Company to Customers for various contracts	294799.000	294475.900

FIXED ASSETS

Tangible Assets

• Land
• Buildings
• Plant and Equipment
• Building Berths, Kasara Basin Dry Docks and Launchways
• Other Civil Works
• Office Equipment
• Furniture, fixtures
• Vehicles
• Launches & Boats

Intangible Assets

• Computer Software/SAP-ERP
• Other than SAP- ERP

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 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.61.63
UK Pound	1	Rs.99.94
Euro	1	Rs.85.14

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		72

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.