1. Summary Information

		Country	India
Company Name	MAZAGON DOCK LIMITED	Principal Name 1	M. Selvaraj
Status	Excellent	Principal Name 2	P.R. Raghunath
		Registration #	11-002079
Street Address	Dockyard Road, Mumbai – 400 010, Maharashtra, India
Established Date	26.02.1934	SIC Code	--
Telephone#	91-22-23775562 (20 Lines)/ 23781561/ 23713451/ 23730660/ 23726293 / 3762000/ 23763000/ 23764000	Business Style 1	Ship Building
Fax #	91-22-23738159 / 23738147 / 23738151 / 23738333 / 23738340 / 23738338	Business Style 2	Ship Repairing
Homepage	http://www.mazagondock.gov.in	Product Name 1
# of employees	Information declined by management	Product Name 2	--
Paid up capital	Rs.1,992,000,000/-	Product Name 3	--
Shareholders	Government [Central and State] – 99.99% Directors or relatives of Directors – 0.01%	Banking	State Bank of India
Public Limited Corp.	NO	Business Period	80 Years
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	Aa (80)
Related Company
Relation	Country	Company Name	CEO
--	--	--	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2013		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	108,831,300,000	Current Liabilities	232,855,900,000
Inventories	143,707,900,000	Long-term Liabilities	814,900,000
Fixed Assets	1,260,300,000	Other Liabilities	3,623,800,000
Deferred Assets	60,000,000	Total Liabilities	237,294,600,000
Invest& other Assets	1,578,000,000	Retained Earnings	16,150,900,000
		Net Worth	18,142,900,000
Total Assets	255,437,500,000	Total Liab. & Equity	255,437,500,000
Total Assets (Previous Year)	243,518,000,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	22,906,400,000	Net Profit	4,127,200,000
Sales(Previous yr)	25,236,900,000	Net Profit(Prev.yr)	4,943,100,000

MIRA INFORM REPORT

Report Date :

11.06.2014

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 (80)

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 :	Excellent
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is wholly owned by government of India, is under the administrative control of the ministry of defence and plays a strategic role in securing national defence. It is a well established “MINI RATNA” company having excellent track record. The company possesses a strong business and financial profile marked by favourable networth base, ample liquidity, negligible debt and healthy interest coverage ratios. The ratings also take into consideration the advance payment from the navy resulting in zero working capital borrowing requirements for the company. Trade relations are trustworthy. Business is active. Payment terms are reported as slow but correct due to bureaucratic hurdles. In view of strategic importance, the subject can be considered 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.

ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.24532.000 Millions (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 76500.000 Limited in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.31500.000 Limited.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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 (91-22-23738327)

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

Facilities :

(Rs. In Millions)

Unsecured Loan		As on 31.03.2013	As on 31.03.2012
Deferred payment liability to a foreign supplier against supply of materials		--	856.400
Less: Amount payable within 12 months		--	39.300
Total		--	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 Rs.. The amount payable within a year of Rs. 39.300 Millions includes yearly instalment payable of Rs. 21.400 Millions (previous year: Rs. 21.400 Millions) and Rs. 17.900 Millions (previous year: Rs. 7.300 Millions) towards exchange variation fluctuation. The loan amount has been reinstated at the present rate of SDR announced by RBI as on 01.04.2012, which is Rs. 7.925 Millions for 1 SDR.

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	5315.000	1839.900
		TOTAL (A)	28603.000	30699.000	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	5818.000	6114.700
		Sub-Contract	989.400	1094.400	1869.000
		Power & Fuel	170.200	112.700	111.600
		Salaries and Wages	--	--	--
		Other expenses
		(a) Project related	3197.600	4070.900	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	23389.500	24442.400
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6544.300	7309.500	3787.800
Less	FINANCIAL EXPENSES (D)		9.000	260.300	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

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	1992.000	1992.000
Reserves & Surplus	13193.700	16150.900
Net worth	15185.700	18142.900
long-term borrowings	817.100	814.900
Short term borrowings	0.000	0.000
Total borrowings	817.100	814.900
Debt/Equity ratio	0.054	0.045

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	26114.100	25236.900	22906.400
		(3.359)	(9.234)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	26114.100	25236.900	22906.400
Profit	2435.200	4943.100	4127.200
	9.33%	19.59%	18.02%

LOCAL AGENCY FURTHER INFORMATION

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.82600.000 Limited. 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	--
Less: Amount payable within 12 months 353 393 8149 8171	(35.300)	--
Total	814.900	--
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

WEBSITE DETAILS

PRESS RELEASES

MAZAGON DOCK LOOKS AT NEXT SUB PROJECT

As shipyard gains confidence building the Scorpene, it looks ahead to make the second line, of 6 more such submarines

April 29, 2014

Project 75 is one of India's most closely guarded military projects, almost as inaccessible to outsiders as the nuclear ballistic missile submarine, INS Arihant, nearing completion in Visakhapatnam.

In a giant shed in the East Yard of Mazagon Dock Limited, Mumbai (MDL), a 200-feet-long, cigar-shaped, metal cylinder is the first of six conventionally powered Scorpene submarines that the Indian Navy contracted to build with Franco-Spanish company, Armaris (since taken over by French shipbuilding major, DCNS).

The boat (as submariners call their vessels) is obviously close to completion - a small remaining gap at the rear will be filled by the section that holds the engine. Nearby, a second Scorpene is taking shape, metallic rings being welded together to form a hull. In the shed next door, a third vessel is racing towards completion.

Hundreds of MDL workmen swarm over the scaffolding that encases the three submarines, overseen by 25-30 French experts from DCNS. They are fitting the wiring, piping and combat systems that must function silently and efficiently in the most taxing underwater conditions.

Business Standard has repeatedly applied to visit this facility but has been turned down each time. The description above comes from a trusted source, with intimate access to the Scorpene project. The ministry of defence (MoD) discourages the media after years of negative publicity over a project running four years late.

Yet, MDL's current chairman, Rear Admiral (Retired) Rahul Shrawat - who inherited the Scorpene delay when he assumed charge of MDL - is upbeat. He promises the first submarine by September 2016, and to deliver the next five Scorpenes at nine-month intervals rather than the one-year intervals contracted.

Speaking to Business Standard, Shrawat promised: "We will launch the first Scorpene by September 2015 and deliver it to the navy within a year, i.e. by September 2016. The subsequent boats will be delivered at nine-month intervals, with the sixth and final vessel joining the fleet by June 2020.

Shrawat admits this is an aggressive timeline without any buffers for unexpected delays. As Business Standard first reported (Scorpene tangled in govt web, December 19, 2009) Project 75 was delayed by a sloppy Rs 187980.000 Millions contract that made MDL responsible for buying Rs 2,7000.000 Limited worth of Scorpene internal equipment from DCNS. When MDL ordered, DCNS cited inflation to raise the price to Rs 47000.000 Millions. The ensuing negotiations, and the lengthy processes for fresh government sanctions for added costs, caused over two years of delay.

"Many significant items are yet to be delivered to us, even for the first submarine. This is a big criticality but we will meet the challenge," says Shrawat confidently.

The Scorpene delay is part of a critical shortfall of operational submarines with the navy. The fleet has just 10 Sindhughosh-class (Russian Kilo-class) submarines, and four Shishumar-class (German HDW) submarines, of which just 9-10 were operational at any time. The availability fell to 7-8 after two recent submarine accidents - the sinking of INS Sindhurakshak in Mumbai after a cataclysmic explosion on board that killed 18 crewmembers last August; and a fire on board INS Sindhuratna in February that killed two officers and led to the resignation of the navy chief.

Even so, Project 75 has created confidence about MDL's new ability to build submarines. The shipyard is readying to build a second line of six submarines under the new Project 75I, worth an estimated Rs 50,0000.000 Millions ($8.25 billion). Government sanction is being processed for Project 75I.

Rather than floating a global tender for Project 75I, Shrawat wants to take advantage of the experience and expertise gained during Project 75. Instead of having a fourth type of submarine in the navy's fleet (in addition to the Kilo-class; HDW and Scorpene), MDL sees the benefit in a more modern Scorpene with air independent propulsion (AIP) and land-attack missiles that the Project 75 vessels lack. Only the last two Project 75 vessels are slated to have AIP.

"Most naval policymakers would not consider it prudent to have a fourth type of conventional submarine in the fleet. I'm sure the government will feel the same. So, why not build more Scorpenes; improved with AIP and land attack missiles," says Shrawat.

The defence ministry, led by A K Antony for the last eight years, consistently shrank from such decisions in favour of a single vendor, preferring the path of open tendering even when it created operational drawbacks, like a multiplicity of platforms. The next government's orientation will be keenly watched.

Another key factor in the Project 75I decision would be the willingness of foreign governments to supply submarines equipped with land attack missiles. The Missile Technology Control Regime (MACRO) proscribes the transfer of missiles with ranges of 300 km and more.

Meanwhile, Indian defence shipyards are jostling fiercely for a share of Project 75I. The navy wants two submarines built abroad and inducted quickly into service, with the remaining four being built by MDL and the newly acquired defence shipyard, Hindustan Shipyard Limited (HSL). But LandT cites its key role in building the nuclear submarine, INS Arihant, to argue that it should build at least one Project 75I submarine.

STATE-RUN MAZAGON DOCK CONFIRMS JV WITH PIPAVAV DEFENCE TO BUILD WARSHIPS AND SUBMARINES

India’s largest private defence shipyard Pipavav Defence and Offshore Engineering has been chosen by state-run Mazagon Dock as a joint venture partner to build warships and submarines for Indian Navy. While the joint venture was stalled earlier due to a row over the Mazagon Dock’s selection policy, the joint venture now stands confirmed by the government. 

According to Nikhil Gandhi, chairman of Pipavav Defence, the 50:50 joint venture named Mazagon Dock Pipavav will implement part of the existing orders of Mazagon Dock of Rs 1,00,0000.000 Millions ($21.69 billion) and also bid for future defence contracts in India. The venture has been established to fast-track warship and submarine contracts held currently by the Mazagon Dock.

This crucial joint venture was put on hold since other private sector giants and Pipavav Shipyard’s rivals including Larsen and Toubro and ABG Shipyard had complained to the government over the inconsistencies in the selection process by Mazagon docks. However, Defence Ministry has overruled any allegation of foul play after studying the complaints received from the other private shipyards. This tie-up will give Pipavav Shipyard a distinct edge over its rivals such as LandT and ABG Shipyard who are also up for a chunk of the defence pie.

Pipavav Shipyard covers roughly 200 hectares with approximately 720 m of sea front and 685 m of outfit quay. Besides being the largest shipyard in India, Pipavav is also one of the largest drydock in the world. The latest joint venture would afford better utilisation of Pipavav's shipyard which is considered as one of the most modern in India. Mazagon Dock will now use Pipavav's facility in Gujarat to build orders that it has on hand.

In an earlier statement, Pipavav Chairman revealed that the yard was equipped to build five warships or ten smaller ones a year. The Mazagon order book, with part execution alone, is expected to keep the company busy for over 15 years. Pipavav had also stated that it would require five yards of Pipavav's size to complete the Mazagon Dock's pending orders.

The Indian government had formulated a policy in 2011 which led to the public-private partnerships in the defence sector. The state-run Mazagon Dock was the first to be exposed to this collaboration and the rest of the state-owned shipyards will be gearing towards the same owing to the backlog and size of defence orders in the country.

MAZAGON DOCK SIDESTEPS JVS WITH L AND T AND PIPAVAV, INVITES BIDS

Mazagon Dock invites bids to build a portion of two destroyer ships for the Navy indicating its JVs with the firms may have failed

Bangalore: Mazagon Dock Limited invited bids last week to build a portion of two destroyer ships for the Navy, a move that shows its joint ventures with two private shipbuilders have failed.

“The tender defies the whole concept and logic of forming the joint ventures by Mazagon separately with Larsen and Toubro Limited (LandT) and Pipavav Defence and Offshore Engineering Company Limited,” a top executive at the Mumbai office of a private shipyard said. The state-owned shipyard formed the joint venture companies to execute its naval orders faster.

“It is strange and funny that Mazagon, which is a partner in the joint ventures, will have to participate in its own tenders to get the work,” the executive said, requesting anonymity.

Mazagon, India’s top warship-builder, is building four destroyer class ships in a project named P15B.

Mazagon intends to leverage capacities available within the country, both in private and public shipyards, to ensure the P15B ships are delivered to the Indian Navy on time. It wants to shortlist a shipyard to undertake block fabrication, outfitting, transportation and delivery of blocks at Mazagon Dock for the vessels, the tender put up on its website said.

The tender is an indication that the joint ventures with Larsen and Toubro and Pipavav have become non-operational, an industry expert said. It also reinforces a government view that the ventures have to participate in competitive bids to co-build existing contracts at Mazagon Dock for faster execution.

The two firms could have given Pipavav and L and T access to a portion of the Rs.1 trillion order book of the Mumbai-based shipyard without going through a public tender.

Mazagon says the joint ventures have become non-productive. “Let the new government come and decide what to do with the joint ventures,” a Mazagon executive said, asking not to be named.

To boost self-reliance in defence shipbuilding and improve throughput of defence public sector undertakings in producing state-of-the-art naval ships on time and at globally competitive prices, the government framed rules in 2012 to start firms in partnership with private firms, which resulted in the two joint ventures Mazagon formed with LandT for submarines and with Pipavav for warships. The venture between Mazagon and Pipavav was incorporated as Mazagon Dock Pipavav Defence Private Limited. The one with Land T is yet to incorporated.

Pipavav declined to comment. L and T said it would apply for the tender on its own.

The joint ventures were intended to leverage the strengths of the private partners to work out a collaborative strategy for taking India towards self-sufficiency in warship and submarine construction and reduce dependence on imports.

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.59.26
UK Pound	1	Rs.99.63
Euro	1	Rs.80.59

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUB
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		80

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.