MIRA INFORM REPORT

Report Date :

04.10.2014

IDENTIFICATION DETAILS

Name :	MAZAGON DOCK LIMITED
Registered Office :	Dockyard Road, Mazagon, Mumbai - 400 010, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
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

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.

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

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 31-03-2014.

INFORMATION DECLINED

Management Non Cooperative (91-22-23762000)

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 31.03.2014

WHOLE TIME DIRECTORS
Name :	Rear Admiral (Retd) R K SHRAWAT, AVSM
Designation :	Chairman and Managing Director
Name :	Capt. Rajiv Lath
Designation :	Director (Submarine and Heavy Engineering)
Name :	Cmde. Rakesh Anand
Designation :	Director (Corporate Planning and Personnel)
Name :	Shri M. Selvaraj
Designation :	Director (Finance)
Name :	Cdr. P. R. Raghunath
Designation :	Director (Ship Building)
ART-TIME OFFICIAL DIRECTORS:
Name :	Shri Ashok K.K. Meena
Designation :	Joint Secretary (NS), Ministry of Defence.
Name :	Shri Prem Kumar Kataria
Designation :	Addl. FA (K) and Jt. Secretary, Ministry of Defence

KEY EXECUTIVES

Permanent Special Invitee :	· VAdm K R Nair, CWP&A · Shri Rajnish Kumar, Addl. FA&JS(RK) · RAdm Anil Kumar Saxena, DGND · Dr V Bhujanga Rao, DS, CCR&D (NSIC) DRDO
Special Invitees :	· RAdm (Retd) Shekhar Mital, CMD, GSL · RAdm (Retd) 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 31.03.2014

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	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1992.000	1992.000	1992.000
(b) Reserves & Surplus	18940.400	16150.900	13193.700
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	20932.400	18142.900	15185.700
(3) Non-Current Liabilities
(a) long-term borrowings	887.700	814.900	817.100
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	3441.000
(d) long-term provisions	1498.900	1908.600	1324.900
Total Non-current Liabilities (3)	2386.600	2723.500	5583.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	7927.700	11714.400	18949.200
(c) Other current liabilities	247387.600	221141.500	202077.600
(d) Short-term provisions	701.400	1715.200	1722.500
Total Current Liabilities (4)	256016.700	234571.100	222749.300
TOTAL	279335.700	255437.500	243518.000
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1682.000	1161.400	1143.900
(ii) Intangible Assets	79.200	98.900	89.700
(iii) Capital work-in-progress	1123.900	782.100	381.500
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	60.000	60.000	60.000
(c) Deferred tax assets (net)	1178.800	795.900	447.300
(d) Long-term Loan and Advances	2639.100	3423.400	3442.700
(e) Other Non-current assets	582.100	1422.100	1571.000
Total Non-Current Assets	7345.100	7743.800	7136.100
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	180272.000	143707.900	138192.700
(c) Trade receivables	3025.600	3944.600	2924.900
(d) Cash and cash equivalents	52393.500	60047.900	52160.500
(e) Short-term loans and advances	34675.800	38873.500	41599.000
(f) Other current assets	1623.700	1119.800	1504.800
Total Current Assets	271990.600	247693.700	236381.900
TOTAL	279335.700	255437.500	243518.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	28867.200	23313.900	25384.000
		Other Income	6126.500	5289.100	5315.000
		TOTAL (A)	34993.700	28603.000	30699.000
Less	EXPENSES
		Cost of Materials Consumed	12937.100	9574.700	12210.100
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	722.200	293.900	(1016.000)
		Employees benefits expense	6271.600	6054.200	5818.000
		Sub-Contract	1910.800	989.400	1094.400
		Power & Fuel	211.900	170.200	112.700
		Other expenses
		(a) Project related	2276.700	3197.600	4070.900
		(b) Others	3398.900	1122.800	1122.700
		Adjustment for Expenses Transferred to Fixed Assets	(25.500)	(33.000)	(30.600)
		Provisions made	1229.700	921.500	1.200
		Prior Period Adjustments	1.400	-232.600	6.100
		TOTAL (B)	28934.800	22058.700	23389.500
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6058.900	6544.300	7309.500
Less	FINANCIAL EXPENSES (D)		0.900	9.000	260.300
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6058.000	6535.300	7049.200
Less/ Add	DEPRECIATION/ AMORTISATION (F)		182.300	146.400	131.400
	PROFIT BEFORE TAX (E-F) (G)		5875.700	6388.900	6917.800
Less	TAX (H)		1899.600	2261.700	1974.700
	PROFIT AFTER TAX (G-H) (I)		3976.100	4127.200	4943.100
	IMPORTS
		Raw material including machinery, equipment for construction of ships, submarine, repairs and other production jobs	24001.300	19729.000	14121.300
		Stores & Spares	0.000	0.000	6.700
		Capital Goods	204.500	0.000	15.000
	TOTAL IMPORTS		24205.800	19729.00	14143.000
	Earnings Per Share (Rs.)		199.60	207.19	248.15

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	11.36	14.43	16.10
Net Profit Margin (PBT/Sales)	(%)	20.35	27.40	27.25
Return on Total Assets (PBT/Total Assets}	(%)	2.12	2.52	2.85
Return on Investment (ROI) (PBT/Networth)		0.28	0.35	0.46
Debt Equity Ratio (Total Debt /Networth)		0.04	0.04	0.05
Current Ratio (Current Asset/Current Liability)		1.06	1.06	1.06

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	1992.000	1992.000	1992.000
Reserves & Surplus	13193.700	16150.900	18940.400
Net worth	15185.700	18142.900	20932.400
long-term borrowings	817.100	814.900	887.700
Short term borrowings	0.000	0.000	0.000
Total borrowings	817.100	814.900	887.700
Debt/Equity ratio	0.054	0.045	0.042

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	25384.000	23313.900	28867.200
		(8.155)	23.820

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	25384.000	23313.900	28867.200
Profit	4943.100	4127.200	3976.100
	19.47%	17.70%	13.77%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT: 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	No
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	No
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
Presentation Date : 17/01/2013
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 ADMISSION – AFTER NOTICE
Last Date:-	24/09/2014
Last Coram:-	· HON'BLE SHRI JUSTICE A.S. OKA · HON'BLE MRS. JUSTICE MRIDULA BHATKAR
Act:-	Micro, Small and Medium Enterprise Dev. Act

FINANCIAL HIGHLIGHTS:

The Value of Production for the Financial Year 2013-14 is Rs.28655.100 Millions as against Rs.22906.400 Millions in the previous year. The Profit before tax is Rs. 5875.700 Millions for 2013-14 as against Rs. 6388.900 Millions in the previous year.

DIVISION-WISE PERFORMANCE

SHIPBUILDING DIVISION

The Shipbuilding Division of the Company recorded a Value of Production of Rs. 11966.200 Millions for 2013-14 as against Rs.9781.400 Millions of the previous year.

The Construction activities on three ships of the P15A Project are progressing towards completion and construction activity of one ship of P-15B has commenced.

SUBMARINE and HEAVY ENGINEERING DIVISION

The Value of Production on account of Submarine Construction was Rs.16688.900 Millions for 2013-14 as against Rs. 13125.000 Millions of the previous year.

The construction activities of all six submarines of P-75 are progressing as per schedule.

MAZDOCK MODERNISATION PROJECT

Mazdock Modernisation Project (MMP) has now started reaping its benefits with the commissioning of ‘Modular Workshop and Cradle Assembly Shop’ in 2013-14 and the commissioning of new Wet Basin and Heavy Duty Goliath (300 ton) crane during 2012-13. The new store building is also on the verge of completion. Induction of these facilities will augment the shipyard's capacity and effectively reduce construction period of warships and submarines. These infrastructure facilities are being created as Customer Financed Assets with funds from naval projects and internal accruals.

The Company has embarked on a massive modernization programme and adapted the paradigm of ‘Integrated Construction’. This methodology will change the way ships are built in India and dramatically reduce build periods of warships and submarines.

OTHER INFRASTRUCTURE PROJECTS

The construction of the ‘Submarine Section Assembly’ workshop at Alcock Yard, being developed as a second assembly line for submarine construction, has achieved substantial progress. Once commissioned, the workshop will enable the company to meet the timelines of delivery of submarines, the order for which is in hand. It will also cater to the requirement of anticipated future orders.

FUTURE OUTLOOK

The Company will continue to concentrate on meeting the demands of the Indian Navy in line with Maritime Capabilities Perspective Plan (MCPP).

The Company has been trying to acquire 16 acres of land of MbPT at Powder Bunder, situated in north of MDL, needed for development of facilities and capacity enhancement for building ships and submarines. MDL is also trying to acquire 12 acres of land of flotilla workshop of MbPT. The land is geographically contiguous to MDL’s South Yard where infrastructure exists for shipbuilding activities. Once acquired, it can be used to augment MDL’s ship-building infrastructure and capacities.

The Indian Navy has drawn up a comprehensive 15 years indigenisation plan and MDL, as a shipyard, has committed to align itself to the indigenisation plan of the Indian Navy and endeavour to indigenise items in partnership with the Indian Navy.

The Company intends to appoint a Know-How Provider (KHP) for Technology Upgradation and Capacity Enhancement (TUCE) which would impart requisite knowledge and skill to leverage utilisation of the modernised infrastructure at MDL. The KHP will function on a line project i.e. P-17A, thus bringing an all-round business process transformation in warship building.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT 2013-14

NATURE AND SCOPE OF THE SHIPBUILDING INDUSTRY

The Company is in the business of shipbuilding and predominantly in the defence shipbuilding segment. Shipbuilding is an industry which requires very high capital investment, labour with exceptional skill sets and high technology. The merchant shipbuilding is driven by market economy and by its very nature is highly volatile and cyclic in nature. There are host of variables that decides the trajectory that commercial shipbuilding traces. Macro and micro-economic developments at the global level, nationally impact the shipbuilding arena. Extant government policies, taxation structure, oil prices, demand-supply matrix etc. are some of the factors influencing global market for merchant ships. Warship building on the other hand is primarily driven by the maritime security requirements of the nation and the threat perceptions that are current and futuristic. Warships are high-technology platforms that can engage with the enemy multi-dimensionally. Submarines are also an inevitable and important component in the fleet adding teeth to the blue water capability of the Navy. Defence technology as such is very dynamic in nature and to catch-up and keep pace with the technological advancement is indeed a real challenge. Construction of naval platforms is inherently technology intensive and requires substantial investment of time, money and human resources.

Frontline warships like frigates, destroyers and submarines typically have long gestation periods for build owing to their complexity. The design maturity available at the time of commencement of production is a key factor in the build period. Designs of warships built by the Company are indigenously developed, and typically the build period for front line warships range from 6-8 years. The Company has modernised the basic infrastructure and this affords handling of fully pre-outfitted grand assemblies paving way for practicing global best practices like Integrated Construction. Building follow-on ships in a series with more number of vessels, will essentially provide high take-off levels in terms of design maturity and availability of material and will definitely result in reduced build period. The Indian shipbuilding industry comprises both public and private sector yards. The new Defence Procurement Procedure promulgated by the MoD envisions more private participation in defence production. The Company will need to step-up its multifaceted capabilities to remain buoyant in a highly competitive environment.

The company has a rich legacy of building world class hi-tech warships and has consciously adopted the motto of ‘Deliver quality ships on time’. The modernisation programme initiated by the Yard is almost complete. The infrastructure upgrade now available has brought the Company into the league of yards that can handle grand blocks and execute integrated construction. The modernised infrastructure is being gainfully leveraged for current build programmes of P15B ships (destroyers) and the Scorpene Class submarines.

Despite their inherent strengths, the Indian shipyards need to go a long way to graduate commercially and technically to the level of shipyards in developed nations. The best practices in the industry abroad are to be imbibed and ruthlessly implemented for ensuring long-term dividends.

The Indian Shipbuilding 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 facing very stiff taxes, tariff, duties, and financing charges as compared to other parts of the world.

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

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2014	As on 31.03.2013
LONG-TERM BORROWINGS
Deferred payment liability to a foreign supplier against supply of Materials	928.000	850.200
Less: Amount payable within 12 months	(40.300)	(35.300)
Total	887.700	814.900
The deferred payment liability (non-interest bearing) of Rs.962.800 Millions, payable over 45 years from 1992-93, in equal annual installments of Rs.21.400 Millions was converted from Rouble to units of Special Drawings Rights (SDR) and stated in Rupees. The amount payable within a year of Rs.40.300 Millions includes yearly instalment payable of Rs.21.400 Millions (Previous year Rs.21.400 Millions) and Rs.18.900 Millions (Previous year Rs.13.900 Millions) towards exchange variation fluctuation. The balance loan amount has been reinstated at the present rate of SDR announced by RBI as on 01-04-2014, which is Rs.93.9228 for 1 SDR.

CONTINGENT LIABILITIES AND COMMITMENTS:

Amounts for which Company may be contingently liable:

Rs. In Millions

Particular	31.03.2014	31.03.2013
Estimated amount of contracts remaining to be executed on capital account.	2579.500	3414.800
Estimated amount of Liquidated Damages on contracts under Execution	2304.200	5640.300
Position of non-fund based limits utilized for:
Letters of Credit	12823.500	12773.800
Guarantees and counter guarantees	284.900	1159.900
Indemnity Bonds issued by the Company to Customers for various contracts	406012.300	294799.000

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

* Date of charge modification

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 and Boats

Intangible Assets

· Computer Software/SAP-ERP

· Other than SAP- ERP

WEBSITE DETAILS

PRESS RELEASES

DEFENCE MINISTER REVIEWS PROGRESS OF INDIGENOUS SUBMARINE CONSTRUCTION AT MAZAGON DOCKS LIMITED, MUMBAI 

27-August-2014 

Hon’ble Raksha Mantri Shri Arun Jaitley accompanied by Admiral RK Dhowan Chief of the Naval Staff visited Mazagon Docks Limited, Mumbai today and reviewed the progress of the Project 75 (Indigenous submarine construction project) as well as the other ongoing warship building projects including P-15 B class stealth destroyers . The visit of Raksha Mantri, within 3 months of taking over amply demonstrates the importance being accorded by the Government to the indigenous construction of submarines and warships. 

During his visit the Defence Minister inaugurated the Mazdock Modernisation Project (MMP), which would significantly enhance the warship and submarine construction capability of the shipyard. M/s Haskoning Nederland B.V. (HNBV), world renowned consultants in the field of marine construction, were appointed as consultant for this project. The major components created under MMP include a new Wet basin with level luffing cranes, 300-Ton Goliath Crane, Module Workshop, Stores Building, Shipyard transporter and Cradle and Assembly shop at a cost of Rs. 8000.000 Millions approx. 

It may be recalled that Project 75 submarine construction project is a very important project for the country and Indian Navy. 06 state-of-the-art submarines fitted with latest equipment are being built at MDL, Mumbai under collaboration with M/s DCNS France, giving a massive boost to the indigenous submarine construction capability of the country. With all the impediments and material hurdles resolved, the construction of the submarines is progressing on schedule to meet the planned delivery schedule of Sep 2016. 

Presently, first three submarines of the project are in outfitting phase, and the systems of the first submarine are being ‘Set to Work’. The Project is being reviewed at regular intervals at all levels at Naval Headquarters and Ministry of Defence (MoD) to gear up for the launch of the first submarine in Sep 2015. Preparations to induct these submarines are in progress and the selected crew has commenced training. The submarines will be initially based at Mumbai and shifted to operational base at Karwar after completion of trials. Necessary impetus is also being given by the government to create associated shore support facilities as per the Long Term Infrastructure Perspective Plan (LTIPP). 

Mazagon Dock Limited, the premier shipyard of the country has been selected as winner of the ‘Golden Peacock Award for Corporate Social Responsibility’ for the year 2012 by the awards Jury.

The award will be presented at a specially organized “Awards Gala Nite” on 25 April 2012 at Hotel Intercon Dubai Festival City in Dubai during the Dubai Global Convention incorporating the 7th International Conference on Social Responsibility.

His Excellency Humaid Mohammed Obaid Al Qutami, Minister of Education, Govt. of UAE will be the Chief Guest and present the Golden Peacock award along with Hon’ble Dr. M. Veerappa Moily, Union Minister for Corporate

Affairs, Govt. of India.

The declaration vindicates MDL’s commitment and responsibility in developing parity in society, especially in its immediate vicinity.

His Excellency the Ambassador of Japan to India Mr. Akitaka Saiki along with his team visited the Country’s premier warshipbuilding yard, Mazagon Dock Limited. He was received by Rear Admiral R K Shrawat, Chairman and Managing Director, MDL.

The visitors were shown the yard facilities including production shops, modernisation project etc. and a presentation was made to showcase MDL's capability.

H.E. Mr. Akitaka Saiki was extremely impressed with the facilities and professionalism of the workforce at MDL. He hoped to come back in near future for strengthening the bilateral defence cooperation between the two nations in the area of building submarines.

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.

PM MODI INDUCTS INDIA'S LARGEST INDIGENOUSLY BUILT WARSHIP INS KOLKATA

Aug 16, 2014

NEW DELHI: In another date with the Navy after spending time on board aircraft carrier INS Vikramaditya, Prime Minister Narendra Modi inducted the largest-ever warship built in India till now, the 6,800-tonne destroyer INS Kolkata, at Mumbai on Saturday.

The entire programme to build INS Kolkata and two follow-on destroyers (INS Kochi and INS Chennai), being undertaken at the Mazagon Docks under the Rs 11,662 crore Project-15A, is running several years behind schedule. Once the construction of these three destroyers was over, the plan was to launch Project-15B to build four guided missile stealth destroyers.

Both INS Kolkata and INS Kamorta are part of the 44 warships currently on order in Indian shipyards at a cost of over Rs 2 lakh crore, as part of the endeavour to steadily build a three-dimensional blue-water Navy capable of taking care of India's huge strategic interests in the region stretching from the Persian Gulf to the Malacca Strait.

The largest warship being indigenously built, of course, is the 40,000-tonne aircraft carrier INS Vikrant at the Cochin Shipyard. The Modi government recently cleared the allocation of Rs 190000.000 Millions to complete its construction, which had derailed due to paucity of funds, as was first reported by TOI.

Around 75% of the carrier's basic structure, including the hull and deck, has been completed till now at a cost of around Rs 35000.000 Millions. Now, the superstructure, the upper decks, the cabling, sensors, weapons and the like will be integrated on INS Vikrant, which will be commissioned only in 2018 as per the re-revised timeframe.

Though the IAC project was approved in January 2003, the actual construction of the huge warship began only in 2006. After the carrier's keel was laid in 2009, it was "launched" into water in August last year.

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.61.75
UK Pound	1	Rs.100.06
Euro	1	Rs.77.95

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUB
Report Prepared by :	NTH

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	NO
--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.