Ladies & Gentlemen,
On behalf of the Board of Directors, I have immense pleasure in welcoming you to this 96th Annual General Meeting of the Company and share with you some of the Company’s significant achievements during the year under review. The Company has recorded the highest ever Value of Production during the year. The Company’s Profit Before Tax has also registered a growth over last year. The Company’s Net Worth has also gone up compared to 2010-11. The Company has delivered five ships to the Indian Navy and Indian Coast Guard, which is a record for number of ships delivered by any Defence shipyard in the country in a financial year. These accomplishments could not have been possible but for the guidance and unstinted support of the Government of India, especially the Department of Defence Production and I am extremely grateful to them. The active role of the members of the Board of Directors, the dedicated efforts put in by the Officers, Supervisors and Workers of the Company as well as the trust and confidence reposed by our valued customers, viz.. the Indian Navy, Coast Guard and the Ministry of Home Affairs, have contributed immensely in our growth and progress.
Performance highlights of the year 2011-12:
Financial Parameters: The Company has registered Profit Before Tax of `169.35 crore.
Turnover/Value of Production: The turnover of the Company has increased by 23% as compared to F.Y. 2010-11. The VOP of `1293.80 crore is the highest achieved by the Company so far.
Dividend: For the year 2011-12, the Directors are pleased to recommend a dividend @ 20% on the Company’s paid up equity capital amounting to `24.77 crore (approx.).
MOU Rating: In terms of parameters contained in the Memorandum of Understanding signed with the Government for the year 2011-12, the Company is expected to be rated as “Excellent” in its performance. This would be the third consecutive year wherein company would achieve “Excellent” grading in respect of the targets set in MoU.
Corporate Governance: It is the constant endeavour of the Company to adopt and maintain the highest standards of ethics in all spheres of its business activities. The Company’s philosophy of Corporate Governance is based on the principles of honesty, integrity, accountability, adequate disclosures and legal / statutory compliances, to protect, promote and safeguard the interests of all its stakeholders.
Shipbuilding and Production Achievements: The Company’s Shipbuilding and Engineering activities have registered a substantial growth due to greater thrust on enhanced productivity, improved quality control and dedicated human resource. The following are the main achievements for this year:-
* Delivery of Ships. The Company achieved record production of 05 Nos. ships during the year which is a record for any shipyard in the country for one production year.This includes the last three (3) Ships (Yard Nos. 2064, 2065 & 2066) of the series of (10) Ten Water Jet Propelled Fast Attack Craft project (WJFAC) were delivered to the Indian Navy during this financial year.The eighth ship was delivered on 19 Apr 11 while the last two ships were delivered on 27 May 11 and 09 Aug 11 respectively. In addition, 02 ships (Yard No. 2072 and 2073) of the series of Inshore Patrol Vessels (IPV) were also delivered to the Indian Coast Guard during the year.
The Second ASW Corvette (Yard No. 3018) was launched on 25 Oct 11 by Smt Mamatha, wife of Shri M M Pallam Raju, Hon’ble Raksha Rajya Mantri who graced the occasion as the Chief Guest. We are happy to inform you that your Company had achieved, for the first time, more than 50% completion at the launching stage. This is an unique achievement.
The keel of the forth and last ASW Corvette (Yard No. 3020) of P-28 project was laid on 20 Jan 12 by Vice Admiral Ganesh Mahadevan, Chief of Material, Indian Navy.
Three IPV class of ships (Yard Nos. 2074, 2075 and 2076) of the series of eight Inshore Patrol Vessel (IPV) for Indian Coast Guard were launched simultaneously from Rajabagan Dock Yard on 30 Sep 11.
The keel of the last three ships of IPV Project Yard Nos. 2077,78 & 79 were laid on 24 Jan 12 at Raja Bagan Dockyard.
The contract for construction of eight Landing Craft Utility MK-IV(LCU MK-IV) for Indian Navy was signed during the financial year 2011-12.
Production (Plate cutting) of Offshore Patrol Vessel for Govt. of Mauritius (Yard No. 3021) has commenced within the scheduled time frame.
The Bailey Bridge (BB) Department dispatched fiftysix nos. bridges during the year and secured orders worth `28.69 crore in 2011-12.
Deck Machinery Unit has achieved a remarkable task in this year by way of successful demonstration and clearance of Rail less Helo Traversing System to handle a helicopter on board ship by the Navy. This is the ‘first of its class design’ built by GRSE for ASW Corvettes, with a tie-up with M/s Mac Taggart Scott, UK. The orders in hand for Deck Machinery are valued at about `22.60 crore for execution during the FY 2012-13.
The Pump Unit has indigenized various Russian – Origin centrifugal Naval Pumps of ENC (V) and supplied 38 Pumps worth ` 3.92 crore during the year 2011-12. The orders in hand amount to `4.79 crore and some more orders are expected in future.
The Value of Production achieved by Engine Division during the year 2011-12 amounted to `45.09 crore as compared to `27.91 crore during the previous year. During the year DEP, Ranchi had received orders amounting to `153.42 crore.
The present order book position of the Ship Division is `10,847 crore.
Future Outlook :Your Company is fully committed to building quality ships for the Indian Navy, Coast Guard and Foreign customers. Your Company after taking over Raja Bagan Dockyard, has refurbished / converted it into a full fledged shipyard from where number of ships have already been delivered to Indian Navy and Indian Coast Guard. The Company is making all out efforts to further reduce the build period of the ships.
Infrastructure Upgradation: Modernisation of Shipbuilding infrastructure in Main Yard is likely to be completed by the end of 2012. With the operationalisation of modernisation facilities at Main Yard, shipbuilding capacity of the Company will be doubled. The enhanced facilities for integrated construction will result in considerable reduction in build period of ships. Contract for P-17A ships is being finalised with the concept of Integrated Construction technology in order to improve quality and reduction in build period for future warships.
ERP & IT Initiatives:In its modernisation drive, the Company has fully made operational the state-of-the-art Information and Communication System in the Company. The hardware and software are in place and the Company has started deriving benefits out of this drive. In order to propagate the benefits of IT initiatives to entire spectrum of employees, initiatives like installation of kiosks and user friendly employee portal are also being taken up.
Conservation of Energy: The yard continued its endeavor to conserve the energy. Through energy audit conducted in all the units of the shipyard in Kolkata, we continued to optimize consumption of energy i.e. coal, electricity, petroleum etc., Power factor of the system was consistently maintained at optimal level. The shipyard has been rated as “Excellent” in MoU criteria in 2010-11 under the category of sustainable development i.e. conversion of conventional lamps to CFL, plantation of trees and implementation of solar power lighting etc.
Industrial Relations: Industrial relations situation during the period across all Units of the Company including DEP, Ranchi was generally peaceful and harmonious.
Corporate Social Responsibility: Corporate Social Responsibility (CSR) is an integral part of the Company’s corporate philosophy, integrating business processes with social processes. The Company is committed towards CSR and has a CSR Policy in place to guide its CSR activities. In terms of the policy, the Company focuses on the following thrust areas for its CSR projects:
- Health Care.
- Education & Skill Development.
- Community Development.
Implementation of RTI Act: Implementation of RTI is being progressed in line with the government directives. Requests received were replied and Annual Return for the year has been uploaded in RTI MIS Updation System developed by NIC.
I would like to conclude by thanking the Central and State Government Authorities, Naval and Coast Guard Authorities, and the Shareholders for their continued trust and confidence they have reposed in us. I would like to place on record our sincere thanks to the Comptroller & Auditor General of India, the Principal Director of Commercial Audit, the Statutory and Branch Auditors and the Principal Controller of Defence Accounts (Navy) for their valuable suggestions and co-operation. I acknowledge the patronage of our Bankers, Suppliers and Business Associates. I also acknowledge with gratitude the continual assistance and guidance received from Indian Navy and Indian Coast Guard. Last, but not the least, I appreciate the dedication and hard work put in by all the employees of the Company to achieve its goal and the Board of Directors who have supported and guided the Company to put it on a path of accelerated growth.
Thanking you all,
24th August, 2012
Rear Admiral (Retd.)
Chairman & Managing Director