Home  |  FAQ  |  Contact Us  |  Sitemap  |  Feedback
Annual Reportss Director's Report
Home » Annual Reports » Director Report
Chairman's Address at the 50th AGM on 28th September, 2016
10 Years at a glance
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Notice of 50th Annual General Meeting
Annual Report 2015-2016
Investor Services


The Shareholders,

Ladies & Gentlemen,
The Directors present their 48th Annual Report and the audited Accounts of the Company for the year ended 31st March, 2014.

During the year, the Company delivered two 105 M Naval Offshore Patrol Vessels to Indian Navy, five Glass Reinforced Plastic (GRP) Survey Motor Boats to Indian Navy, one Fishing Research Vessel to Central Marine Fisheries Research Institute (CMFRI) and completed Shore Based Test Facility at INS, Hansa for Aeronautical Development Agency (ADA). Besides, the Company also delivered four Glass Reinforced Plastic (GRP) Patrol boats to Gujarat Maritime Board and one GRP Patrol boat to Captain of Port, Government of Goa. The Company has achieved highest Sales of 1165 Cr against 844 Cr in previous year, due to delivery of two NOPVs in the financial year. Also Value of Production was higher at 509 Cr as compared to 507 Cr in the previous year.
During the year 2013-14 company suffered a loss of 61.09 crore as against net profit of 15.50 crore in the previous year. This was mainly due to one time liabilities on project concluded/delivered prior to FY 2013-14. The company has taken up the issues of waiver of LDs and reimbursement of additional project expenditure on account of warranty extension amounting to about 59.18 crore with the customer/Ministry in terms of the contract and is hopeful of recovery of the same and posting profits from current year onwards.

. in Lakh
2013-14 2012-13
Gross Profit before Depreciation, Interest and Prior Period Adjustment -2510 6853
Prior Period Expenditure 0 0
Depreciation 1727 1818
Interest 2042 2424
Loss / Profit Before Tax -6279 2612
Provision for Tax -170 1062
Loss / Profit After Tax -6109 1550
Brought forward from previous Year 6
Surplus Available 0
Dividend proposed 0 582
Tax on Distributed Profit 0 99
General Reserve -6103 725
CSR and Sustainability Reserve 0 143
Carried to Balance Sheet 0
TOTAL -6103
Since the Company has suffered a loss during the year, no dividend is recommended to be paid to the shareholders for the year 2013-14.

The paid-up share capital of the Company as on 31st March, 2014 was 2910 lakh. The Company neither had any outstanding loans nor has taken any fresh loan from the Government during the year.
The foreign exchange outgo during the year was 14774 lakh and the earning in foreign exchange was 8277 lakh.
The financial position of the Company as on 31st March, 2014 and as on 31st March, 2013 is shown below:-

. in Lakh
  As on 31.03.2014 As on 31.03.2013
Capital Employed* 40649 57226
Gross Block 44184 43920
Net Block 32428 33802
Working Capital 8221 23424
Net Worth 58437 64053
Value Added 15059 19638
Ratios: % %
Profit before interest and tax : Capital Employed -10.42 8.80
Profit after tax : Net worth -10.45 2.42
Value added : Capital employed 37.05 34.32
  The values of Production & Sales during 2013-14 and the previous year are given below:-

. in Lakh
Production Sales
2013-14 2012-13 2013-14 2012-13
Ship Construction 39954 33227 107229 69181
Ship Repairs 1770 1367 2030 1100
General Engineering 6953 12157 5050 10220
Base & Depot Spares 2213
Total 50890

The Company's contribution to the Central Exchequer during 2013-14 was 5797 lakh ( 6056 lakh last year), which includes NIL by way of Corporate Tax ( 465 lakh last year), 99 lakh by way of Tax on Distributed Profit ( 285 lakh last year), 297 lakh towards Dividend ( 877 lakh last year), 5322 lakh by way of Value Added Tax ( 3488 lakh last year), 408 lakh by way of Central Sales Tax ( 568 lakh last year) and 61 lakh by way of Service Tax ( 273 lakh last year), 6 lakhs towards Central Excise duty (last year 100 lakh).
During the year, the Company delivered the 105 M Naval Offshore Patrol Vessel (NOPV), "INS Sunayna" (Yard 1195) to the Indian Navy on 02.09.2013 and the vessel was commissioned on 15.10.2013 by Vice Admiral Satish Soni, PVSM, AVSM, NM, Flag Officer Commanding-in-Chief, Southern Naval Command at Kochi. Further, the Company delivered another 105 M NOPV, "INS Sumedha" (Yard 1196) to the Indian Navy on 14.01.2014 and the same was formally commissioned by VAdm Anil Chopra, PVSM, AVSM, FO C-IN-C East on 7th March 2014 at an impressive ceremony held at GSL. This is the 200th Vessel built by GSL and marks yet another significant milestone in the nation's journey towards indigenisation and self reliance.
The keel for 3rd 105M Coast Guard Offshore Patrol Vessel (CG OPV), Yard 1220 was laid by Inspector General SPS Basra, YSM, PTM, TM, Commander Coast Guard Region (West) Indian Coast Guard, on 11.10.2013 and keel for 4th 105M CG OPV, Yard 1221 was laid by RAdm B.S. Parhar, NM, Flag Officer, Goa Naval Area & Naval Aviation on 09.01.2014.
During the year the overall ship repair market did not improve as expected, and therefore, there was a modest performance of ship repair activities in the yard. The Company repaired thirteen vessels which include Tugs, Offshore Patrol Vessels, Offshore Supply Vessels, Platform Supply Vessels, etc. With the ship repair market showing signs of recovery, the business is expected to improve in coming years.
The Company continues to execute stern gear supply orders for Naval vessels and supply CPP spares to the Indian Navy and other Shipyards. The Company also continued to provide training on Survival at Sea to ONGC personnel on their training vessel Samudra Shiksha. During the year, the Company delivered five Glass Reinforced Plastic (GRP) Survey Motor Boats to Indian Navy, one Fishing Research Vessel to Central Marine Fisheries Research Institute (CMFRI), Kochi and completed Shore Based Test Facility at INS, Hansa for Aeronautical Development Agency (ADA), Bangalore. Besides, the Company delivered four Glass Reinforced Plastic (GRP) Patrol boats to Gujarat Maritime Board and one GRP Patrol boat to Captain of Port, Government of Goa.
As on 31st March, 2014 the net order value of balance work to be executed against orders received for Ship Construction, Ship Repair/Refit work and General Engineering Services amounted to 2560.60 Cr. (approximately) to be executed upto 2017-18.
The Company has set challenging targets of Value of Production of 577.50 Cr and Gross Operating Margin of 28.87 Cr under Excellent criteria for the year 2014-15, as per the MOU signed by the Company with the Government. The Company is confident of achieving these targets.
The Company with support from Government of India took several initiatives in export of its proven products range for offering to international customers. The Company has a strategic advantage in establishing as a major international player in construction of vessels to meet international customers. In addition to domestic requirements, the company focuses on export market. The company has signed two major contracts with our neighbouring country this year for export of Naval Patrol vessels on 15th May 2013 and the project work has commenced. Contract for one number 50 Mtr. Fast Patrol Vessel for Mauritius Coast Guard was signed on 7th May, 2014, with a provision for supply of one more vessel which is expected to be signed within a year.
The Company has bagged the order for construction of Damage Control Simulator for Myanmar Navy. The Company has also signed a contract with Mauritius Government for supplying 11 in number Fast Interceptor Boats for their Coast Guard. The Company has submitted offers for construction of Damage Control Simulator (DCS) to the Navies of neighbouring countries. The Company has been very assiduous in its efforts of pursuing the case for export of 110 FRP Patrol vessels for Coast Guard of Middle East Country.
Buoyed with success, the Company continues to make efforts for exporting its products, especially the in-house designed range of Patrol Vessels and the FRP High Speed Interceptor Crafts by participating in various exhibitions and interacting with potential customers of various countries. In order to publicize our expertise and improve our exposure in the international market, the Company advertises in reputed International Naval publications and participates in international exhibitions. During the year 2013-14, the Company took part in Latin American Aero Defence (LAAD-13) held at Rio-De Janeiro, Brazil from 9th to 12th April, 2013, as part of 'India Pavilion' along with the other DPSUs. The Company is getting serious enquiries from the Southern American region. The company is in discussions with several countries for possible local tie ups based on future expected requirements
The Company's Quality Management System is certified for "Design, Construction and Repairs of Ships and Craft and providing General Engineering Services" in accordance with the requirements of the international standard ISO 9001:2008 by Indian Register of Quality System (IRQS). The present certificate is valid upto 19th November, 2015 and the same is being maintained by annual surveillance audits by IRQS.
As on 31st March, 2014, the Company had on its roll 228 Officers, 06 Management Trainees, 72 Yard Supervisors, 47 Technical Supervisors, 75 Ministerial Supervisors, 997 Workmen and 120 Workmen/Supervisors on Fixed Term basis, which include 20 Executive and 85 Non-Executive women employees. The position regarding representation of SCs/STs and Women employees in various categories as on 01.01.2013 and 01.01.2014 is given in Annexure 'A'. The particulars of Recruitment of SCs/STs and Women personnel during the calendar year 2013 are given in Annexure 'B'. The reservation of 3% for recruitment of Persons with Disabilities (PWD) has been provided in Group 'A', 'B', 'C' and 'D' categories in compliance with the Persons with Disabilities (Equal Opportunity Protection of Right and Full Participation) Act, 1995. The Company has no employee covered under Section 217(2A) of the Companies Act, 1956.
The Company continues to give due importance to Welfare measures of employees. Constant and conscious efforts are being made to improve the welfare of employees and their families. To promote a sense of discipline, an award is being given to employees for 15 years and 25 years of clean record of service. Recreational facilities such as Indoor games, reading room with newspapers and magazines, soft music tracks are provided for employees during lunch & off duty hours. The Company provides accident cover and better medical assistance to employees through various Group Insurance Schemes and also contributes towards the Employees' Death Benefit cum Welfare Fund Scheme.
Incentives for promotion of family welfare scheme, higher education and self-development in related skills, etc., are provided on a continuing basis. Scholarship is awarded to the employees' children as an incentive for pursuing higher education. The Company also encourages employees to actively participate in various sports/tournaments through GSL Sports Club. An employee of the Company represented Goa State in the 35th National Goa Master Athletic Championship held at Coimbatore, Tamil Nadu from 24th to 27th February, 2014 and won 1st prize in 1500 mtrs. run, 2nd prize in 400 mtrs. and 800 mtrs. run respectively. During the year, the Company observed Quami Ekta Week/Communal Harmony week from 19th to 25th November, 2013. Two Pulse Polio immunization programmes were held at GSL for beneficiaries in and around GSL premises.
The Company continues to accord the utmost importance to Safety while carrying out various jobs in the yard. The Company has a dedicated Safety Cell with personnel qualified in Safety.
The company has evolved stringent regulations for Personal Safety and Personal Protective Equipment (PPE). The Safety Cell has been carrying out regular inspections for implementation of the Safety regulations. The Company has evolved Height Work Permit system, Hot work permit system while fuel onboard, General work Permit system and Man Entry permit system for all personnel working in the Yard and also formulated other work permit such as Height work, Fragile Roof work, Confined space, Electrical, Radiography, Transfer of fuel from Ship to tanker and vice versa. "Safety, Health & Environment" policy, Duties and Responsibility at various levels, Emergency preparedness plan have been formulated and is under review.
To improve the Safety standards further, the Company has been carrying out regular Safety Training and Awareness Programmes for its employees. On the Occasion of "Safety Month", mass awareness programs on work place safety training, and fire fighting demonstration were arranged. The personnel of Contractors and sub-Contractors are also being trained and made aware of Safety while carrying out the jobs entrusted to them. Change Agent for Productivity Safety & Health team has been trained on various topics of Safety and are now helping hand in implementing and creating safety awareness at work place.
The company has been regularly holding Safety Committee Meetings to work out and implement both Preventive and Corrective Action Plans. The yard personnel are constantly encouraged to carry out self-inspection and root cause analysis in order to identify appropriate corrective & preventive measures for achieving continual improvement. As a result of the efforts, the number of accidents has come down over the years.
During the year, the following Parliamentary Committees visited Goa and held discussions with the Management:
  (a)   Parliamentary Committee on Papers laid on the table, Rajya Sabha visited Goa from 14th to 16th October, 2013.
  (b)   First Sub-Committee of the Committee of Parliament on Official Language visited Goa from 18th to 20th January, 2014.
The Company has been awarded the prestigious CIDC Vishwakarma Award for 2014 under the category 'Best Professionally Managed Company'. The award is instituted by Construction Industry Development Council (CIDC) a body under Planning Commission, Government of India. In addition, two of our employees have also been awarded 'Best Artisans' Vishwakarma Awards.
The company continues to give utmost importance for transacting the Official Policy of the Union and various directives / instructions issued by the Department of Official Language, Ministry of Home Affairs and Ministry of Defence from time to time. The company is a compliant with 'On-Line' submission of Quarterly Progress Report regarding progressive use of Official Language Hindi to authorities concerned. The Company has achieved targets as laid down in the Annual Programme regarding use of Hindi in official work.
Official Language Implementation Committee (OLIC) under the Chairmanship of CMD and Directors met regularly and reviewed the progress in implementation of various measures for promoting Hindi. Hindi Prabodh, Praveen & Pragya Courses, Hindi Typewriting, Hindi Stenography and Hindi Computer training has been completed.
Regular two meetings of Town Official Language Implementation Committee (TOLIC) were held under the Chairmanship of CMD, GSL. During the meeting, Special Rajbhasha Rolling Shields & Certificates were distributed to Central Govt. offices, PSUs and Banks for excellent performance in implementation of Official Language. Goa Shipyard Limited was one of the recipients of the said award. Rajbhasha Subodh Karyakram, All India level Essay Competition and Third Annual Edition of "Vasco Reshmi" a TOLIC Magazine in Hindi was released by Chairman TOLIC at the meeting.
The Company has received the International Academy Rajbhasha Patrika Shield Samman 2013 and Certificate from Rashtriya Hindi Academy, Rupambara during International Conference on Hindi language and literature held at Gantok. Twelfth Meeting of the Hindi Salahkar Samiti of Raksha Utpadan Vibhag, Raksha Mantralaya held on 6th November, 2013 under the Chairmanship of Hon'ble Raksha Rajya Mantri, was attended by the Chairman & Managing Director of the Company.
As per directives of Ministry of Home Affairs, Dept. of Official Language, Hindi Week was observed at GSL from 16th to 21st September, 2013 for improving awareness and promoting use of Official Language. On the eve of Vigilance Awareness Week, National Safety Week, Quami Ekta Week, Energy Conservation Week, various competitions were also conducted in Hindi. All India Level Hindi Essay, Hindi Typing and Hindi Noting & Drafting Competitions were conducted on behalf of Kendriya Sachivalay Hindi Parishad, New Delhi. Saransh Digital Boards have been installed to display Aaj ka Shabd evum Aaj ka Vichar, retirement of personnel, important events and achievements in the display screen to popularise Hindi through the power of Technology.
In order to promote the use of Hindi language in day to day official work as well as pursuant to the directives of Government of India to promote "UNICODE" applications on all computers, training programme on IT Tools was organised for executives and non-executives by Guest Faculty from Kendriya Hindi Prashikshan Sansthan, Pune. Functional Hindi workshops and special lectures on Official Language Policy on important aspects of the Official languages Act, 1963 and Official Languages Rules, 1976 were arranged from time to time to encourage more and more Executives and employees to do their Official work in Hindi. A Five days Translation Training Programme under the auspices of Central Translation Bureau, Ministry of Home Affairs, Govt. of India was organised from 17th June, 2013 to have uniformity of diction in translation. The Company continues to have an Incentive scheme to encourage the employees for doing work in Hindi.
During the visit of Hon'ble Parliamentary Committee on Official Language for inspection on 20th January, 2014, the Management had fruitful interaction with the Committee. Annual Hindi Magazine "Goayard Samachar Varshikank 2013-14" of the Company was released in the meeting.
Under the Right to Information (RTI) Act, 2005, to facilitate provision of information to the citizen requesting for the same, the Company has evolved necessary structure by designating Officers as Chief Public Information Officer, Assistant Public Information Officer, First Appellate Authority and Transparency Officer for the purpose of implementation of Right to Information Act in the Company. The particulars of the organisation functions, powers & duties of the officers, norms, pay scales etc., as prescribed under Section 4 of the Right to Information Act have been posted on the website of the Company, www.goashipyard.com. The Company has received 73 applications from the citizens which were appropriately replied / attended and wherever required the information has been provided to the general public.
Expenditure on business promotion during the year 15.65 lakh. An amount of 66.02 lakh was spent on foreign travel by the Company's executives / employees for the purpose of technology transfer, production and export promotion.
"Promoting good governance through positive contribution of vigilance" was the focus point during the financial year. The regular inspections and surprise checks were carried out to prevent any lapses and violations of laid down procedures and CVC guidelines. All newly joined management trainees and executives were made aware of vigilance role and its functions in the Company. The Vendors meet with the Management was organized.
Vigilance Awareness Week was celebrated from 28.10.2013 to 02.11.2013. During the week, Vigilance pledge was administered and various competitions were arranged for the executives, employees and CISF personnel. Debate and essay competitions were also organized for students of various Higher Secondary Schools and Colleges in Goa. A speech on "Good Governance, Ethics, Moral values" was delivered by Dy. Chairman, Mormugao Port Trust. The Company's commitment to demonstrate Vigilance at all levels was also publicized by display of posters and banners in prominent places in the yard and other Units. The overall objective of vigilance has been to encourage transparency, and instill confidence amongst the citizens in the dealings with the Company as a Public Sector Enterprise in pursuit of good corporate governance. The Company has made good progress by adopting e-Procurement & good Governance practices as per the directions of CVC.
As on 31.03.2014, the Audit Committee of Directors reconstituted pursuant to Section 292A of the Companies Act, 1956, and DPE Guidelines on Corporate Governance for CPSEs 2010, was as follows:
1 Prof. (Dr.) R. Venkata Rao : Chairman Independent Director
2 Sri R. K. Agrawal : Member Independent Directors
3 Sri R. Choudhary, D(O), GSL : Member Functional Director
The Company has implemented the Guidelines on Corporate Governance for CPSEs 2010 issued by Department of Public Enterprises (DPE) vide OM No.18(8) / 2005-GM dated 14.05.2010. The Management Discussion & Analysis Report and Corporate Governance Report along with Compliance Certificate from the Auditors of the Company, as required under the said Guidelines, are placed at Annexures 'C' and 'D' hereto, respectively. As per the Self-evaluation Annual Grading Report on Corporate Governance for the year 2013-14, the Company has achieved "Excellent" grading.
The information on Conservation of Energy and Technology Absorption is provided in the Management Discussion & Analysis Report placed at Annexure 'C' hereto.
To the best of their knowledge and belief and according to the information and explanations obtained by them, the Directors make the following Statement pursuant to the provisions of Section 217 (2AA) of the Companies Act, 1956:

i) That in the preparation of the annual accounts, the applicable accounting standards have been followed along with the proper explanation relating to material departures, if any.
ii) That such accounting policies have been selected and applied consistently and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2014 and of the loss of the Company for the year ended 31st March, 2014.
» iii) That proper and sufficient care has been taken for the maintenance of adequate accounting records for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
» iv) That the annual accounts have been prepared on a going concern basis.
The Government of India appointed Vice Admiral Anurag G. Thapliyal as Part-time Official Director and RAdm. (Retd.) Shekhar Mital, as a Chairman & Managing Director of the Company with effect from 06.08.2013 and 01.02.2014, respectively. The Board welcomed their appointments.
Prof. Debashis Chatterjee ceased to be Part-time Non-Official Director (Independent Director) with effect from 18.01.2014 on completion of his three years term. RAdm. (Retd.) Vineet Bakhshi also ceased to be Chairman & Managing Director of the Company with effect from 31.01.2014 on his retirement on attaining the age of superannuation. The Board has placed on record its appreciation of the valuable services rendered by Prof. Debashis Chatterjee and RAdm. (Retd.) Vineet Bakhshi as Director and the Chairman & Managing Director of the Company, respectively.
In accordance with Article 117(2) of the Articles of Association of the Company, the under mentioned Directors shall retire from office on the day of the Annual General Meeting and are eligible for re-appointment:-
» Shri Prem Kumar Kataria,
» VAdm. Anurag G. Thapliyal,
» Prof. (Dr.) R.Venkata Rao,
» Shri R.K. Agrawal.
RAdm. Anil Kumar Saxena, DGND, Shri Rajnish Kumar, Addl. FA & JS (RK) and Shri A. K. K. Meena, Joint Secretary (NS) continued as Permanent Special Invitees on the Board of Directors of the Company. Government of India, Ministry of Defence, Department of Defence Production, New Delhi, vide their letter No.2(12)/2007-D(SY) dated 28.04.2014, have appointed VAdm. A. V. Subhedar as Permanent Special Invitee on the Board of Goa Shipyard Limited (GSL) till he holds the post of CWP&A or further orders. In addition, the Chairman & Managing Directors of Mazagon Dock Limited, Mumbai, Garden Reach Shipbuilders & Engineers Limited, Kolkata and Dr. V. Bhujanga Rao, DS, CCR&D, (NS&IC), DRDO continued as Special Invitees to all Board Meetings of the Company
The Comptroller & Auditor General of India (C&AG) appointed M/s. Deshpande Pandit & Co. (SR1514), Chartered Accountants, Belgaum, Karnataka as Auditors of the Company for FY 2013-14. The Directors recommend to the members of the Company to consider fixation of the remuneration of 1,50,000/- plus Service Tax plus TA/DA for Auditors of the Company to be appointed by the C&AG for FY 2014-15.
The Comments of the C&AG u/s 619(4) of the Companies Act, 1956, on the Accounts of the Company for FY 2013-14 will be appended on receipt. The Review of Accounts by the C&AG, if any, will be appended on receipt as Annexure 'E' hereto.
The Directors wish to express their grateful thanks and appreciation for the assistance, co-operation and guidance received by the Company from various Ministries of the Government of India, especially Ministry of Defence, Department of Defence Production, Integrated Headquarters (Navy) / MOD, Indian Coast Guard organization, Comptroller & Auditor General of India, Controller of Defence Accounts (Navy), Government of Goa, Mormugao Port Trust and Flag Officer Goa Area & Naval Aviation and look forward to their continued support in the future. The Directors also acknowledge with gratitude the continued patronage and support given by the Company's clients. Thanks are also due to the Classification authorities, Company's Bankers and Auditors for their help and co-operation.
The Directors also wish to record their appreciation for the dedication and sincere efforts put in by the employees of the Company to achieve its goal.

Place : Vasco-da-Gama, Goa.
Date : 25th September, 2014.
For and on behalf of Board of Directors
[RAdm. (Retd.) Shekhar Mital]
Chairman & Managing Director