About
Mazagon Dock Shipbuilders Ltd
Mazagon Dock Shipbuilders Limited (Formerly known as Mazagon Dock Limited) was incorporated as a Private Limited Company on February 26, 1934 in Mumbai. The Company is one of India's leading Defence Public Sector Undertaking Shipyards under the Ministry of Defence (MoD). The Company is principally engaged in building and repairing of ships, submarines, various types of vessels and related engineering products for its customers.
At present MDL is handling two Shipbuilding projects for Indian Navy, comprising of four ships of P15B & four ships of P17A each. Besides, MDL is also handling construction of six Scorpene class Submarines for the Indian Navy, out of which three Submarines have already been delivered. The Company have the capability to build warships, submarines, merchant ships upto 40,000 DWT since 1979.
In 1960, Mazagon Dock Shipbuilders Limited was taken over by the Government of India (GoI) for Indigenous production of warships for the Indian Navy.
In 1972, the Company delivered the first frigate, INS Nilgiri.
In 1984, the Company inaugurated undertaking submarine construction.
In 1992, the Company commissioned first Indian built submarine, INS Shalki.
In 1997, the Company delivered first Delhi class Destroyer under project P15.
In 1998, the Company was accredited with ISO certification for shipbuilding.
In 2000, the Company upgraded to Schedule A' status from Schedule B'.
In 2006, the Company received Award for Mini Ratna Category - I status.
In 2007, the Company was awarded for Excellence & Outstanding contribution to the Public Sector Management - Special Institutional Category.
In 2008, the Company bagged award for Raksha Mantri for Best Performing Shipyard.
In 2009, the Company implemented enterprise resource planning (ERP_ and systems applications and products.
In 2010, the Company moved on in delivering its first Shivalik class Frigate under project P17 and was accredited with the Institute of Directors (IOD) the Golden Peacock Award for Innovative Product/Service with ISO Certification for submarine division.
In 2011, the Company signed an agreement of shipbuilding contract for construction and delivery of four P15 B misile destroyers with the MoD.
In 2012, the Company was awarded the Golden Peacock for Corporate Social Responsibility, awarded by Institute of Directors (IOD), the BT-STAR PSU Excellence Award for excellence in Innovation (Tech/R&D), and awarded by Bureaucracy Today; QCFI- Special Awards for Best Organization for Promoting 5S concept, awarded by Quality Circle Forum of India.
In 2014, it delivered first Kolkata class Destroyer under project P-15A.
In 2015, the Company launched first destroyer class ship 'Vishakhapatnam' under P15 B project and further signed contract for construction and delivery of four frigates with the MoD.
In 2016, the Company inaugurated new submarine section assembly workshop at Alcock Yard.
In 2017, the Company authorized the production of first P-75 Scorpene class submarine, INS Kalvari. A Memorandum of Understanding (MoU) dated November 24, 2017 was entered between Bharat Electronics (BEL), Hindustan Aeronautics Limited (HAL) and the Company for establishment of 150 MW grid connected solar power plant at the land/ estate of the Ordnance Factory Board under the developer mode wherein BEL shall be the nodal agency for implementation and responsible for operation and technical scope of the project. In the said project, the Companies HAL and BEL are entitled to share the investments in the ratio of 25:25:50.
In 2019, the Company took the initiative in commissioning second P-75 Scorpene class submarine, INS Khanderi and launching of INS Nilgiri, first Frigate of Project 17 A.
On 12th October 2020, the Indian Chamber of Commerce conferred the Mazagaon Dock Shipbuilders Limited 10th PSE Excellence Award for being the Runner up in Corporate Social Responsibility under Miniratna I, II & others category. 11 MDL Quality Circle teams participated virtually at National Convention on Quality Concepts (NCQC-2020) held in the year of 2020 in December. 10 QC teams won Par Excellence (highest) award and 01 QC team won Excellent award from M/s Quality Circle Forum of India (QCFI), Hyderabad. Besides, the MDL was awarded 2nd Prize for Rajbhasha Patrika Jal Tarang' and 3rd Prize for Rajbhasha Implementation in the year on 12 July 2020.
The Company completed trials for three major R&D projects, through Industry-Academia participation with IIT Madras, Chennai through their incubated start-ups belonging to the Tamil Nadu Corridor. The Company ventured into the area of Artificial Intelligence (AI) also through these projects. The product developed through the first Project, i.e., AI enabled weld inspection tool with computerized radiography to replace manual radiography (RT), was launched during the Defexpo 2020 at Lucknow. The second project fruitfully concluded by developing an AI enabled robotic weld inspection tool employing phased array technique, and this can replace computerized radiography in consultation with the Indian Navy. The product also was at display during Defexpo 2020. An AI enabled Remotely Operated Vehicle (ROV) is the third project which was also displayed during DEFEXPO 2020. This AI ROV can detect and classify underwater images, thus making the inspections quick and safe.
In 2021, the Company authorized the commissioning of of third P-75 Scorpene class submarine, INS Karanj.
In FY 2021, the Company put to use its infrastructure under Mazdock Modernisation Project (MMP) comprising of a new Wet Basin, Heavy Duty Goliath Crane, Module Workshop, Cradle Assembly Shop, Store Building and associated ancillary structures. Submarine Section Assembly (SSA) workshop, an eco-friendly green concept building has been completed and put to use. Besides, it replaced piped services of Mumbai Yard towards fire safely. It commissioned a new Canteen facility with a seating capacity of 500 workers a major infrastructure additions.
The Company in partnership with IIT Madras, Chennai(IITM) has designed and developed two Artificial Intelligence enabled product comprising of AI-enabled Computerized radiography and AI-enabled advance phase array ultrasonic testing(APAUT) to improve the quality assurance of weld with less time, less labor consumption & higher efficiency. With the increased capacity and well trained personnel, the Company is poised to tap export markets for marine platforms and heavy engineering products along with offering services in shipbuilding, ship repairs and refits.
The submarine division have setup an in-house Fluid Testing Laboratory for testing the cleanliness, pH and water content of hydraulic oil used in P75 submarine.
During the year 2020-21, the Company had signed Memorandum of Understanding (MoU) with the Ministry of Defence, Government of India required to be achieved under Project 75 (submarines) and shipbuilding projects of 15B and 17A.
During 2021-22, the Company delivered their First Ship of Project Destroyer on 28 October, 2021 and commissioned into the Indian Navy on 21 November, 2021. It had re-commenced operations in normal mode from 07 June, 2021 and Oxygen supply had been restored from 01 June, 2021. It delivered two major platforms, first ship of Project Destroyer and the Fourth Scorpene Submarine of Project Submarine to the Indian Navy on 09 November, 2021 which was commissioned on 25 November, 2021. It launched the sixth Submarine on April 20, 2022.
In 2022-23, Second Ship Missile Destroyer Project (P15B), Mormugao' commissioned on 18 Dec' 22. Fifth Scorpene Submarine of Project 75, Vagir' commissioned on 23 Jan' 2023. Sixth Scorpene Submarine of Project 75 Vagsheer' launched on 20 Apr'22. Second Frigate of Project 17A, Udayagiri' and Fourth Missile Destroyer of Project 15B, Surat' launched on 17 May 2022. Fuel Cell Electric Vessel (FCEV) launched on 01 Jul 2022. Third Frigate of Project 17A, Taragiri' launched on 11 Sep'22. First Destroyer commissioned into the Indian Navy effective 21 Nov. 2021. The Company completed 'Capital Dredging of Navigational Channel from Kanhoji Angre Wet Basin (MDL Water Front) to Offshore Container Terminal berth of MbPT, Mumbai Project work in Nov'22. In Jan' 22, completed modernization of MDL Medical & OHS Center to transform it into a State of the Art' Medical Centre; completed modernization of MDL Guest House located at 17th & 18th floor of Angre House in Dec'22. Keel Frigate Project launched on 11 Sep'22.
Mazagon Dock Shipbuilders Ltd
Chairman Speech
Dear Stakeholders,
I am honored to extend a very warm welcome to you all to the Ninetieth Annual General Meeting(AGM)
of the Company. The Directors'
Report and Annual Accounts of the Company for the Financial Year 2022-23 have already been circulated
to you. It is a matter of privilege and responsibility that I am announcing the results of this fiscal
year through the Annual Report of the Company. I am delighted
to inform that best efforts by MDL collective have resulted in achieving several Best Ever'
milestones across the Business Operations of your Company during the FY 2022-23.
Your Company delivered two major platforms, the second Ship of Project 15B (Missile
Destroyer) - INS Mormugao on 24 Nov 2022 and the fifth Scorpene Submarine of Project 75
Vagir' to the Indian Navy on 20 Dec 2022.
Performance in FY 23
It gives me immense pride to convey that your Company in the Financial Year under
review has recorded highest ever Revenue from Operations of Rs.7,827 crores and highest
Operating Profit of Rs.716 crores. The Profit
after Tax for the Year was recorded at Rs. 1,073 crores, higher by 83% over previous
Financial year. Total income has increased by 39% from Rs. 6,167 crores in FY 2021-22 to
Rs. 8,541 crores in FY 2022-23. Book value per Share has increased from Rs. 164.68 in FY
2021- 22 to Rs. 207.13 in FY 2022-23. Net
Worth has increased by 25.78% from Rs. 3,321 crores in FY 2021-2022 to Rs. 4,178 crores
in FY 2022-23 and EPS increased from Rs.29.08 in FY 2021-22 to Rs.53.19 in FY 2022-23. The
excellent performance in FY 2022-23 is wide ranging and encompasses outstanding
Operational and Financial performance across all functions.
The Company has been consistently earning Profits and distributing Dividend for the
past more than 15 years. As advised by the Government, Company has earlier paid an Interim
Dividend of Rs. 9.10 per equity share, amounting to Rs. 183.54 crore. It was duly approved
by the Board of Directors in their meeting held on 10 Nov 2022. The Board of Directors
have now, further recommended a Final Dividend of Rs. 138.36 crores for FY 2022-23.
Your Company achieved a Historical Double Launch of a Missile Destroyer
"Surat" and a Frigate "Udaygiri" on 17 May 2022. Both the vessels were
"Launched" in the august presence of Hon'ble Raksha Mantri, Shri Rajnath
Singh.
Your Company delivered two major platforms, the second Ship of Project 15B (Missile
Destroyer) - INS Mormugao on 24 Nov 2022 and the fifth Scorpene Submarine of Project 75
Vagir' to the Indian Navy on 20 Dec 2022. I take pleasure in highlighting that
the second Ship of P15B was delivered about
three months ahead of the contractual delivery schedule.
Your Company Launched the sixth Submarine "Vaghsheer" on 20 Apr 2022 &
stealth Frigate "Taragiri" of Project 17A on 11 Sep 2022.
Your Company Launched Fuel Cell Electric Vessel (FCEV) on 01 Jul 22 being India's
First Indigenous Hydrogen Powered Fuel Cell Electric Boat. This is a six Pax Boat that
runs on Hydrogen with an endurance of 22 Hours. Further, your company is in the process of
building four more FCEVs of 24 Pax capacity each.
Your Company was Accredited with ISO 14001:2015 & ISO 45001:2018 (HSEMS)
on 28 Jul 2022 and ISO/IEC 27001:2013
on 19 Oct 2022.
During the period under review your Company successfully conducted various significant
events and won 4 accolades in the form of recognition and awards, detailed in the
Directors' Report, thereby demonstrating the varied competencies of the Company.
Performance against MOU
During the year, your Company had signed Memorandum of
Undertaking (MoU) with Ministry of Defence, Government of India MoD for the financial
year 2022-23. The MoU outlines targets and various performance parameters for the Company.
The Value of Production was targeted at Rs. 7,654 crores (an increase of more than 34%
over the Value of Production achieved for FY 2021-22). Actual achievement of Revenue from
operations for the year is Rs. 7,584 crores for FY 2022-23. During the year, your Company
achieved a Profit Before Tax (PBT) before Exceptional items of Rs. 1,429 crores.
Human resources
Your Company has been putting emphasis on the overall growth & development of
Human Resources and is committed to continue its relentless efforts in updating the
competencies of its executives through exposure to various Learning & Development
initiatives by Institutes of National Importance and through sponsoring functional based
Seminar
/ Conferences / workshops. Besides, in order to ensure smooth supply of skillsets for
Company's requirement and shipbuilding industry, various training programs viz.
trainings of Trade Apprentices under the Apprentices Act, 1961, BOAT Apprentices and
Marine Engineering students under the aegis of DG, Shipping at the Company's
run Apprentice Training School have regularly been organized. A list of Programmes /
Trainings conducted during FY2022-23 is provided in the Directors' Report.
Indigenisation efforts
Your Company had set up a dedicated Department of Indigenization' in Nov
2015, to provide focused impetus to the Hon'ble Prime Minister's "Make-in-
India" initiative and through this your Company has been successfully able
to partner with the Indian industry to undertake indigenization/import substitution of
various equipment/ items which otherwise are being imported.
Your Company has been able to successfully indigenize some of the critical
equipment/items required for warships and submarines as detailed in the Directors'
Report. The procurement of the indigenized items from the
Indian industry would not only result in substantial savings in foreign exchange to the
exchequer but also contribute towards National Capability Building.
As a major leap, in line with National Mission of "Atmanirbhar Bharat" and
"Make in India" and with an
aim of indigenizing the design of conventional Submarines, MDL and initiated an
ambitious program of Design and Construction of Indigenous Conventional Submarine.
Further, MDL has volunteered to MoD to be the nodal agency for Conventional Submarine
Design and to collaborate with IN, GoI agencies and Private Industries.
In addition to the indigenous Hull design and construction, a mega plan for
Indigenisation of equipment for existing / future Submarine Projects under
Atmanirbhar Bharat' and Make in India' program has also been
initiated. Towards this, MDL have analysed all the 8000 equipment
and material required for building Submarines. These 8000 components have been mapped
to 165 equipment. 35 out of total 165 Submarine equipment have been indigenized. In
addition, Project Specific Order (PSO) for 26 equipment have been issued including Main
Electric Propulsion Motor and 31 additional items are at an advanced stage of order
placement.
Marketing initiatives
17. Your Company participated in DEFEXPO 2022 in Gandhinagar and Africa Aerospace
and Defence (AAD) in City of Tshwane South Africa as an exhibitor for marketing and
Business promotions. The exhibitions were
successful in projecting the image and capabilities of India in the defence production
sector in general and
warship/submarine building capabilities in particular. MDL delegation visited 16th
International Defence Exhibition 2023 (IDEX) and the 7th edition of Maritime Defence
Exhibition 2023 (NAVDEX) held in Abu Dhabi. MDL
was also part of Ministry of Defence,
Government of India delegation that visited and participated in the seminars held in
Tanzania, Malaysia,
Australia and Bangladesh organized by High Commission of India. During the seminar MDL
interacted with the Armed forces / Navy representatives wherein Indian shipbuilding
capacities and capabilities were showcased.
Research & Development
Under the "Atmanirbhar Bharat" initiative, MDL has undertaken the
challenge of Indigenously Designing and Development a Midget Submarine.
Many other innovative R&D projects are currently in progress at Special Projects
section under East Yard through collaboration with Academic Institutions, Start Ups &
industry not only in the defence sector but also
in the field of Energy and other Civil applications. Military products like Expendable
Underwater Target (EUT) and Mobile Target Emulator (MTE) are being developed in
partnership with the Industry and are designed to
simulate the situation of actual moving Submarine for training purpose
and for decoy measures.
MDL has developed and launched India's first Fuel Cell powered Electric Vessel
(FCEV) as a Proof of Concept'. This will provide a sustainable green technology
solution for waterways transportation with zero emissions. Modern marine transport
solutions like Hybrid Electric & Solar boats which can provide an environment friendly
options are also under development. This hybrid boat can offer a better alternative to
conventional diesel
boats. The R&D team is also developing prototype of Lithium Ion Battery system
solution for conventional Submarines.
Your Company has executed and completed trials for three major R&D projects,
through Industry-Academia participation with IIT Madras, Chennai through their incubated
start-
ups belonging to the Tamil Nadu Corridor. The AI products are now 100% operational and
are deployed in-house for weld inspections and underwater inspections. Once the AI
learning is completed with the current deployment, the
commercialization of these AI products will be explored.
Your company is also exploring development of innovative AI projects with the help of
Domestic Industry,
Academia and Startups. Some of the major projects includes Artificial
Intelligence (AI) enabled Autonomous Underwater Swarm Drones, Artificial Intelligence
Based Predictive Maintenance of Ship Equipment and Artificial Intelligence Based Energy
Management of Fuel Cell.
The in-house projects as well as projects in collaboration with
academic institutions of repute like Welding Research Institute, Trichy, IISc Bangalore
and NID are all aimed at solving the unique issues faced by the Ship Yard during the
detailed Design and Integration of complex systems into a front line Naval platform. The
specialists' groups functioning under GM (Design) contributes consistently in the
areas of Structural analysis, Ergonomics & HFE, Noise & Vibration
Control, RCS management, Propulsion system integration, Materials and HVAC.
Exports
Your Company working on establishing its presence in the export
market.
MDL has been in dialogue with various Indian Embassies / High
Commissions abroad to expand its product outreach to prospective customers. The
commercial shipbuilding sector
world-wide is passing through a down turn and MDL is deeply aware of the situation.
Nevertheless, the defence requirements in the international market continues to remain
relevant. Your Company has certain unique strengths and skill sets that have been
painstakingly developed in the past eight decades and are adapted
in the complex activities of Weapon Integration & Sensors for high tech Defence
platforms.
Your company is exploring all possibilities of exports. Efforts are on for pursuing
exports with various
countries following both the G2G route wherein the GoI have opened Lines of Credit with
funding typically extended by EXIM bank as well as the B2B route with Sovereign guarantee
of the recipient nation.
Swachh Bharat initiative
Your Company, adhering to the Prime Minister's Swachh Bharat Abhiyaan, has
made a positive impact in creating mass awareness movement in and around MDL and bring
about lasting behavioral change in the society through participation of employees at all
levels as well as the people from the surrounding area.
- Clean-ship of adjacent areas / Roads of MDL by external agency: MDL has engaged an
agency for carrying out daily cleaning of roads (approx. 4.5 km) adjacent to MDL.
- MDL carried out special Swachhta Drive at Sewari Fort.
Corporate governance
Your Company is complying with the Guidelines on Corporate Governance for CPSEs
issued by the Department of Public Enterprises (DPE) and SEBI(LODR) Regulations. Necessary
disclosures have been made in this regard in the Corporate Governance Report.
Green initiatives
Your Company has engaged various initiatives towards sustainable development and
energy conservation in the year under report. Your Company is committed to reduce the
consumption of energy generated
by fossil fuel and to increase the generation of renewable energy to the maximum
possible extent. Your Company has already installed 1.85 MWp Roof Top solar power plant,
procured 40,000 Nos of 110V LED bulbs and 40 Nos of LED Flood lights.
Corporate social responsibility
Your Company is committed to all its stakeholders to conduct business in an
economically, socially and environmentally sustainable manner as part of its CSR &
Sustainability
policy. Your Company has executed 27 projects as part of its CSR initiatives mainly in
sectors of Education, Health & Sanitation, Skill Development and Village Development.
The executed projects are in line with schedule VII of the Companies Act. Your Company
has spent Rs.12.61 crores towards CSR activities during FY 2022-23. A sum of Rs.5.87 crore
remains unspent as several projects/ programs could not be accomplished/ completed due to
delay in the submission of required documents and
/or delay in execution of some projects by the implementing agencies
Future outlook Infrastructure:
- Your Company plans to set up a green field shipyard at its Nhava Yard in a phased manner
with short term and long term development plans based on better visibility with respect to
large ticket orders.
- Your Company would be building a New Floating Dry Dock of
12000T capacity to undertake the construction of advanced and next generation vessels.
- Your Company is committed towards creating a skill development hub with an Apprentice
Training School (ATS) and associated development work at Gavhan village, Navi Mumbai.
Ongoing Projects:
It is a proud achievement that inspite of severe impact on Operations
due to the prolonged pandemic situation worldwide, your company successfully delivered
five Kalvari Class Conventional Submarines to Indian Navy between 2017 to 2022. Further,
your company also successfully delivered two Missile Destroyers to the Indian Navy one
each in FY 2021-22 and FY 2022-23, highlight being that both these Ships were delivered to
the Indian Navy within the contractual timelines. All efforts are being made to
complete the balance vessels under each of these Projects, i.e, Project 75, Project 15B
and Project 17A, MRLC of SSK Submarines on priority.
Concluding remarks
The Board of Directors join me in gratefully acknowledging the valuable guidance
and support received from the Ministry of Defence in shaping and framing various policies
as well as helping us in implementing them. The Board of Directors also expresses sincere
gratitude for the assistance,
co-operation and guidance received by the Company from various Ministries of the
Government of India, Indian Navy, Greater Mumbai Municipal Corporation, Mumbai Port Trust,
Principal Controller of Defence Accounts (Navy), the Departments of Customs, Income
Tax and GST, Principal Director of Commercial Audit, Statutory Auditors M/s C R Sagdeo
& Co., Bankers and the Stakeholders. I take this opportunity to place on record our
appreciation of the high standard of professional acumen, patronage and support from the
Indian Navy and other clients.
I am grateful to the Board of Directors for their unwavering support and guidance, in
maintaining the corporate image of your Company. Your Company has been and shall always
remain committed towards "self- reliance in defence preparedness" by producing
State-of-the-Art combat platforms thereby adding teeth to
the Indian Naval fleet and Coast Guard, and to play a pivotal role in the maritime
defence of our great nation. On behalf of the Board, I acknowledge and appreciate the
excellent commitment and efforts and continuous contribution of the employees at all
levels, who have
enabled your Company to maintain its path of progress.
We shall endeavour our best performance and seize every opportunity to play a critical
role in shaping the maritime defence of our Country and to constantly, enhance our human
skills and innovate and transform as required to meet the challenges of the future.
Jai Hind!
Sanjeev Singhal
Chairman & Managing Director (Additional Charge) w.e.f 01.02.2023 and Director
(Finance) & CFO
DIN: 07642358
Mazagon Dock Shipbuilders Ltd
Company History
Mazagon Dock Shipbuilders Limited (Formerly known as Mazagon Dock Limited) was incorporated as a Private Limited Company on February 26, 1934 in Mumbai. The Company is one of India's leading Defence Public Sector Undertaking Shipyards under the Ministry of Defence (MoD). The Company is principally engaged in building and repairing of ships, submarines, various types of vessels and related engineering products for its customers.
At present MDL is handling two Shipbuilding projects for Indian Navy, comprising of four ships of P15B & four ships of P17A each. Besides, MDL is also handling construction of six Scorpene class Submarines for the Indian Navy, out of which three Submarines have already been delivered. The Company have the capability to build warships, submarines, merchant ships upto 40,000 DWT since 1979.
In 1960, Mazagon Dock Shipbuilders Limited was taken over by the Government of India (GoI) for Indigenous production of warships for the Indian Navy.
In 1972, the Company delivered the first frigate, INS Nilgiri.
In 1984, the Company inaugurated undertaking submarine construction.
In 1992, the Company commissioned first Indian built submarine, INS Shalki.
In 1997, the Company delivered first Delhi class Destroyer under project P15.
In 1998, the Company was accredited with ISO certification for shipbuilding.
In 2000, the Company upgraded to Schedule A' status from Schedule B'.
In 2006, the Company received Award for Mini Ratna Category - I status.
In 2007, the Company was awarded for Excellence & Outstanding contribution to the Public Sector Management - Special Institutional Category.
In 2008, the Company bagged award for Raksha Mantri for Best Performing Shipyard.
In 2009, the Company implemented enterprise resource planning (ERP_ and systems applications and products.
In 2010, the Company moved on in delivering its first Shivalik class Frigate under project P17 and was accredited with the Institute of Directors (IOD) the Golden Peacock Award for Innovative Product/Service with ISO Certification for submarine division.
In 2011, the Company signed an agreement of shipbuilding contract for construction and delivery of four P15 B misile destroyers with the MoD.
In 2012, the Company was awarded the Golden Peacock for Corporate Social Responsibility, awarded by Institute of Directors (IOD), the BT-STAR PSU Excellence Award for excellence in Innovation (Tech/R&D), and awarded by Bureaucracy Today; QCFI- Special Awards for Best Organization for Promoting 5S concept, awarded by Quality Circle Forum of India.
In 2014, it delivered first Kolkata class Destroyer under project P-15A.
In 2015, the Company launched first destroyer class ship 'Vishakhapatnam' under P15 B project and further signed contract for construction and delivery of four frigates with the MoD.
In 2016, the Company inaugurated new submarine section assembly workshop at Alcock Yard.
In 2017, the Company authorized the production of first P-75 Scorpene class submarine, INS Kalvari. A Memorandum of Understanding (MoU) dated November 24, 2017 was entered between Bharat Electronics (BEL), Hindustan Aeronautics Limited (HAL) and the Company for establishment of 150 MW grid connected solar power plant at the land/ estate of the Ordnance Factory Board under the developer mode wherein BEL shall be the nodal agency for implementation and responsible for operation and technical scope of the project. In the said project, the Companies HAL and BEL are entitled to share the investments in the ratio of 25:25:50.
In 2019, the Company took the initiative in commissioning second P-75 Scorpene class submarine, INS Khanderi and launching of INS Nilgiri, first Frigate of Project 17 A.
On 12th October 2020, the Indian Chamber of Commerce conferred the Mazagaon Dock Shipbuilders Limited 10th PSE Excellence Award for being the Runner up in Corporate Social Responsibility under Miniratna I, II & others category. 11 MDL Quality Circle teams participated virtually at National Convention on Quality Concepts (NCQC-2020) held in the year of 2020 in December. 10 QC teams won Par Excellence (highest) award and 01 QC team won Excellent award from M/s Quality Circle Forum of India (QCFI), Hyderabad. Besides, the MDL was awarded 2nd Prize for Rajbhasha Patrika Jal Tarang' and 3rd Prize for Rajbhasha Implementation in the year on 12 July 2020.
The Company completed trials for three major R&D projects, through Industry-Academia participation with IIT Madras, Chennai through their incubated start-ups belonging to the Tamil Nadu Corridor. The Company ventured into the area of Artificial Intelligence (AI) also through these projects. The product developed through the first Project, i.e., AI enabled weld inspection tool with computerized radiography to replace manual radiography (RT), was launched during the Defexpo 2020 at Lucknow. The second project fruitfully concluded by developing an AI enabled robotic weld inspection tool employing phased array technique, and this can replace computerized radiography in consultation with the Indian Navy. The product also was at display during Defexpo 2020. An AI enabled Remotely Operated Vehicle (ROV) is the third project which was also displayed during DEFEXPO 2020. This AI ROV can detect and classify underwater images, thus making the inspections quick and safe.
In 2021, the Company authorized the commissioning of of third P-75 Scorpene class submarine, INS Karanj.
In FY 2021, the Company put to use its infrastructure under Mazdock Modernisation Project (MMP) comprising of a new Wet Basin, Heavy Duty Goliath Crane, Module Workshop, Cradle Assembly Shop, Store Building and associated ancillary structures. Submarine Section Assembly (SSA) workshop, an eco-friendly green concept building has been completed and put to use. Besides, it replaced piped services of Mumbai Yard towards fire safely. It commissioned a new Canteen facility with a seating capacity of 500 workers a major infrastructure additions.
The Company in partnership with IIT Madras, Chennai(IITM) has designed and developed two Artificial Intelligence enabled product comprising of AI-enabled Computerized radiography and AI-enabled advance phase array ultrasonic testing(APAUT) to improve the quality assurance of weld with less time, less labor consumption & higher efficiency. With the increased capacity and well trained personnel, the Company is poised to tap export markets for marine platforms and heavy engineering products along with offering services in shipbuilding, ship repairs and refits.
The submarine division have setup an in-house Fluid Testing Laboratory for testing the cleanliness, pH and water content of hydraulic oil used in P75 submarine.
During the year 2020-21, the Company had signed Memorandum of Understanding (MoU) with the Ministry of Defence, Government of India required to be achieved under Project 75 (submarines) and shipbuilding projects of 15B and 17A.
During 2021-22, the Company delivered their First Ship of Project Destroyer on 28 October, 2021 and commissioned into the Indian Navy on 21 November, 2021. It had re-commenced operations in normal mode from 07 June, 2021 and Oxygen supply had been restored from 01 June, 2021. It delivered two major platforms, first ship of Project Destroyer and the Fourth Scorpene Submarine of Project Submarine to the Indian Navy on 09 November, 2021 which was commissioned on 25 November, 2021. It launched the sixth Submarine on April 20, 2022.
In 2022-23, Second Ship Missile Destroyer Project (P15B), Mormugao' commissioned on 18 Dec' 22. Fifth Scorpene Submarine of Project 75, Vagir' commissioned on 23 Jan' 2023. Sixth Scorpene Submarine of Project 75 Vagsheer' launched on 20 Apr'22. Second Frigate of Project 17A, Udayagiri' and Fourth Missile Destroyer of Project 15B, Surat' launched on 17 May 2022. Fuel Cell Electric Vessel (FCEV) launched on 01 Jul 2022. Third Frigate of Project 17A, Taragiri' launched on 11 Sep'22. First Destroyer commissioned into the Indian Navy effective 21 Nov. 2021. The Company completed 'Capital Dredging of Navigational Channel from Kanhoji Angre Wet Basin (MDL Water Front) to Offshore Container Terminal berth of MbPT, Mumbai Project work in Nov'22. In Jan' 22, completed modernization of MDL Medical & OHS Center to transform it into a State of the Art' Medical Centre; completed modernization of MDL Guest House located at 17th & 18th floor of Angre House in Dec'22. Keel Frigate Project launched on 11 Sep'22.
Mazagon Dock Shipbuilders Ltd
Directors Reports
Dear Members,
On behalf of the Board of Directors, it gives me immense pleasure in
presenting to you 90th Annual Report together with the audited financial statements of the
Company for the year ended 31 Mar 2023 and reports of the Statutory Auditors' and the
Auditor General of India thereon.
Important Events:
- Second Ship of Project Destroyer (P15B), Mormugao' was delivered on 24 Nov
2022 & commissioned on 18 Dec 2022 by Hon'ble Raksha Mantri, Shri. Rajnath Singh.
- Fifth Scorpene Submarine of Project 75, Vagir' was delivered to the Indian
Navy on 20 Dec 2022 and commissioned on 23 Jan 2023 by Admiral R Hari Kumar, PVSM, AVSM,
VSM, ADC Chief of the Naval Staff.
- Sixth Scorpene Submarine of Project 75 Vagsheer' launched on 20 Apr 2022.
- Second Frigate of Project 17A, Udayagiri' and Fourth Destroyer of Project
15B, Surat' launched on 17 May 2022 in the presence of the Hon'ble Raksha
Mantri, Shri Rajnath Singh.
- Fuel Cell Electric Vessel (FCEV) launched on 01 Jul 2022 which is the India's First
Indigenous Hydrogen Powered Fuel Cell Electric Boat.
- 111Third Frigate of Project 17A, Taragiri' launched on 11 Sept 2022 in the
presence of FOC-in-C, Western Naval Command.
- Financial Review
- Financial Results and Performance Highlights:
(H in crore)
PARTICULARS |
2022-23 |
2021-22
5733.28 |
Revenue from operations |
7827.18 |
Profit before Tax (Before Exceptional Items) |
1429.33 |
786.66 |
Profit for the year |
1072.72 |
586.47 |
Gross Block |
1493.57 |
1363.62 |
Net Block |
1024.33 |
964.62 |
Working Capital |
1945.34 |
1345.50 |
Net Worth |
4177.56 |
3321.36 |
Finance Cost |
6.37 |
7.16 |
During the year under review, the Company achieved the Revenue from
Operations of H 7827.18 crore as compared to the previous year H 5733.28 crore. The Profit
before tax and exceptional items is H 1429.33 crore for 2022-23 as against H 786.66 crore
in the previous year. Highest ever Revenue from Operation with a whopping increase of more
than 30% over the next best achieved in FY 2021-22. In the history of the Company, it is
first time that Company is reporting PAT in four digits with a significant rise of 83%
over the PAT of FY 2021-22.
Income Distribution for the year 2022-23 as against previous year is
summarised as under:-
INCOME DISTRIBUTION |
% 2022-23 |
% 2021-22 |
Cost of materials consumed |
60.17 |
58.49 |
Employee benefit expenses |
9.28 |
12.95 |
Finance costs |
0.07 |
0.12 |
Depreciation and amortization expenses |
0.88 |
1.21 |
- Consolidated Financial Statement:
The consolidated financial statements of your Company and its
associate Company Goa Shipyard Limited (GSL) for the year ended 31 March 2023 prepared
pursuant to provisions of section 129(3) of the Companies Act, 2013 and applicable
accounting standards together with the Auditors' Report forms part of this Report.
In accordance to Section 129(3)(1) of the Companies Act, 2013 read with
Rule 5 of the Companies (Accounts) Rules, 2014, a statement containing salient features of
the financial statement of the associate Company is attached to the financial statements
in Form AOC-1 (Appendix 1).
- Capital Structure:
The Authorised Equity Share Capital of the Company as on 31 Mar
2023 stood at H 323.72 crore comprising of 323720000 (Thirty-two crore thirty seven lakh
twenty thousand) Equity shares of H 10 each.
The Paid-up Equity Share Capital as on 31 March 2023 is H 201.69 crore
comprising of 20,16,90,000 (Twenty crore sixteen lakh ninety thousand) shares of H 10
each. During the year under review there was no increase in the Authorised or Paid up
Share Capital. The Company
has not issued any equity shares with differential rights as to the
Dividend, Voting or otherwise, during the year under review.
- Dividend:
The Interim dividend of H 9.10 per equity share (91.00%), amounting
to H 183.54 crore was paid in the year 2022-
23 in accordance with the provisions of the Income Tax Act, 1961, as
approved by the Board of Directors in their meeting held on 10 Nov 2022. The Board of
Directors recommended a Final Dividend of H 138.36 crore which is 68.60% of the paid up
share capital. The total Dividend declared for F.Y. 2022-23 is H 321.90 crore, which is
159.60% of the paid up share capital including the interim dividend amounting to H 183.54
crore.
- Contribution to the Central Exchequer:
Your Company's contribution during 2022-23 to the Central
Exchequer by way of Income Tax, GST, IGST on imports and custom duty was H 1216.21 crore.
- Public Deposits:
The Company has not accepted any deposits from the public and as
such, no amount on account of principal or interest on deposits from public was
outstanding either at the beginning or at the end of the Financial year 2022-23.
- Loans, Guarantees or Investments:
Your Company has not given any loans, guarantees or made any
investments under section186 of the Companies Act, 2013.
- Review of Operations:
Your Company recorded a Revenue of H 7827.18 crore for 2022-23 as
against H 5733.28 crore of the previous year.
Performance / Project Progress:
At present your Company is handling two major Shipbuilding projects
for the Indian Navy, comprising of four Destroyers & four Frigates each. Besides, MDL
is also handling construction of six Scorpene class Submarines for the Indian Navy, out of
which five Submarines have already been delivered. Medium Refit cum Life
Certification(MRLC) of INS Shishumar is currently at an advanced stage of refit completion
and presently undergoing trials.
- Destroyer Project
Destroyers are potent surface combatants that are contemporary and
state- of- the- art platforms. First Destroyer was delivered on 28 Oct 2021 and has been
commissioned into the Indian Navy on 21 Nov 2021. Second Ship of the project was delivered
on 24 Nov 2022 and has been commissioned on 18 Dec 2022. The highlight of both these
deliveries is that both the Ships have been delivered within contractual timelines with
out any delay. The Third ship of the project was launched on 20 Apr 2019 and is currently
undergoing Sea Trials and is expected to be delivered ahead of the contractual timelines.
The fourth Ship of the Project was launched on 17 May 2022 and is currently at an advance
stage of outfitting.
To enhance the pace of production and undertake parallel construction
for third and fourth ships, your Company has adopted new method of Mega Block outsourcing
with enhanced outfitting in the Machinery Compartments where Units / Blocks are
constructed simultaneously at two different geographical locations and towed to MDL and
joined together, facilitating launching of ship from MDL premises.
- Frigate Project:
Production of the first ship had commenced on 16 Feb 2017 and the
keel was laid on 28 Dec 2017. The first ship was Launched on 28 Sep 2019. Production of
Second ship commenced on 27 Feb 2018 and Keel laid on 07 May 2019 and was launched on 17
May 2022. Production of third ship commenced on 31 Jan 2019 and Keel laid on 10 Sep 2020
and was launched on 11 Sep 2022. Production for fourth ship commenced on 22 Jan 2020.
In order to meet the contractual timelines , the Units and Blocks are
being built at three (03) different geographical location. These Blocks are being
constructed by resorting to the Integrated Construction Methodology' wherein
the pre- outfitting of various element are being carried out at the Unit and Block stages
itself. The infrastructure of the yard has been modernized for realizing Integrated
Construction Methodology' that is at par with the global best practices for warship
building. All the four ships are at an advanced stage of outfitting.
- Submarines Project:
The Scorpene Submarines under construction at MDL are state- of-the
art Conventional Submarines being built in collaboration with Naval Group (NG), France.
Sr. No. |
Scorpene Submarine |
Delivered on |
Commissioned on |
1 |
First |
21 Sep 2017 |
14 Dec 2017 |
2 |
Second |
19 Sep 2019 |
28 Sep 2019 |
3 |
Third |
15 Feb 2021 |
10 Mar 2021 |
4 |
Fourth |
09 Nov 2021 |
25 Nov 2021 |
5 |
Fifth |
20 Dec 2022 |
23 Jan 2023 |
6 |
Sixth |
20 Apr 2022 |
undergoing trials |
- Submarine refit project MRLC:
Medium Refit cum Life Certification(MRLC) of INS Shishumar (SSK
class) is at an advance stage of refit completion and is presently undergoing trials.
- Capital Projects and their progress
- Your Company has undertaken the construction of Submarine Launch Facility to facilitate
load out/ launch of fully constructed Submarine from the Submarine Assembly Workshop at
Alcock Yard. The project is expected to be completed by Sept 2023.
- Your Company has completed the work of "Capital Dredging of Navigational Channel
from Kanhoji Angre Wet Basin (MDL Water Front) to Offshore Container Terminal berth of
MbPT, Mumbai in Nov 2022. This will facilitate the movement of vessels independent of tide
variation.
- Your Company is committed towards up gradation
/modernization of existing facilities from time to time. The company is replacing
existing 12 nos. LL
- Your Company has undertaken construction of a new state-of-art Security Complex at the
main entrance. This G+2 storey building will be equipped with latest Security equipment,
Gadgets, Access Control etc. This Complex will be the centralized hub for key MDL
departments such as Security, PRO, Safety, Fire, Estate and HSE for effective
coordination. The project is expected to be completed by July 2023.
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cranes by new Cranes in a phased manner. Company has also commenced the
work of replacement of old Caisson Gate of East Yard Dry dock by new Caisson gate.
- Your Company, in Jan 2022 completed modernization of MDL Medical & OHS Center to
transform it into a State of the Art' Medical Centre in Jan 2022. The Medical
Centre is equipped with latest cutting edge Medical Emergency Equipment and OPD Consulting
Rooms for Doctors into modern aesthetically designed consulting rooms equipped with modern
diagnostic equipment.
- Your Company has undertaken Setting up of a Centralized Kitchen at Alcock Yard spread
over an area of 550 Sqm. The project is expected to be completed by June 2023.
- Your Company has completed modernization of MDL Guest House located at 17th & 18th
floor of Angre House in Dec 2022. The Guest House has a tranquil ambience for pleasant
stay of VVIPs/ VIPs/Visitors in Residential Complex and to enable preparation of quality
food for the workplace of MDL the kitchen will be equipped with modern cooking equipment
having a capacity to cook meals for 2500 personnel under hygienic conditions.
- Other infrastructure projects:
Your Company is also exploring the possibility for setting up a
green field shipyard at its Nhava Yard in a phased manner with short term and long term
developments plan. Short term development shall enable MDL to facilitate the immediate use
of the existing infrastructure for Shipbuilding and Ship Repair business whereas long term
development is to facilitate construction of large size vessels and Submarines including
major refits and repairs.
Towards undertaking the construction of advanced and next generation
vessels, MDL intends to build a New Floating Dry Dock of 12000T capacity.
Your Company is committed towards up-liftment of under privileged
sections of society and towards this a skill development hub is being created with an
Apprentice Training School (ATS) and associated development work at Gavhan village, Navi
Mumbai.
The progress of all the ongoing projects were affected in 2020-22 on
account of pandemic. All efforts are being made to complete ongoing projects as per
revised time schedules.
- Performance against MOUs:
During the year, MDL had signed Memorandum of Understanding (MoU)
with Ministry of Defence, Government of India for the financial year 2022-23. The MoU
outlines targets and various performance parameters for the Company. The value of
production was targeted at H 7654 Crs. Achievement of value of production is H 7,584.03
crs for FY 2022-23. During the year, your Company achieved a Profit Before Tax (PBT)
before exceptional items of H 1,429.33 crore. Final evaluation will be carried out post
CAG Audit of the accounts for FY 2022-23. The Import Content in VOP for 2022-23 is
Rs.2817.72 and for FY 2021-22 IS Rs. 1684.21 Cr.
- Research & Development
The R&D policy of the Company was approved by the Board in June
2013 and a committee was formed to drive the implementation of the R&D policy, in
accordance with the guidelines issued (September 2011) by the DPE on R&D.
Under the "Atmanirbhar Bharat" initiative, MDL has undertaken
the challenge of Indigenously Designing and Development of conventional Submarine.
In addition to the Midget Submarine, many other innovative R&D
projects are currently in progress at Submarine division through collaboration with
Academic Institutions, Start Ups & industry not only in the defence sector but also in
the field of energy and
other civil applications. Military products like Expendable Underwater
Target (EUT) and Mobile Target Emulator (MTE) which are being developed in partnership
with the Industry and are designed to simulate the situation of actual moving submarine
for training purpose and for decoy measures.
MDL has developed and launched India's first Fuel Cell powered
Electric Vessel (FCEV) as a Proof of Concept'. This will provide a sustainable
green technology solution for waterways transportation with zero emissions.
Modern marine transport solutions like Hybrid Electric & Solar
boats which can provide an environment friendly options are also under development. This
hybrid boat can offer a better alternative to conventional diesel boats. The R&D team
is also developing prototype of Lithium Ion Battery system solution for conventional
Submarines.
In addition to the above, MDL is actively participating in iDEX
initiative of Govt. of India and in collaboration with Start-ups/ MSMEs/ Innovators has
already accepted various challenges like Autonomous Underwater Swarm Drone, Development of
Steering console for manoeuvring of Underwater platform, Design & Development of
Submersible Boat etc.
Your Company has executed and completed trials for three major R&D
projects, through Industry-Academia participation with IIT Madras, Chennai through their
incubated start-ups belonging to the Tamil Nadu Corridor. Your Company has ventured into
the area of Artificial Intelligence (AI) also through these projects. The product
developed through the first Project, AI enabled weld inspection tool with computerized
radiography to replace manual radiography (RT), was launched during the Defexpo 2020 at
Lucknow. The second project fruitfully concluded by developing an AI enabled robotic weld
inspection tool employing phased array technique, and this can replace computerized
radiography. The product was at display during Defexpo 2020. An AI enabled Remotely
Operated
Vehicle (ROV) is the third project which was also displayed during
DEFEXPO 2020. This AI ROV can detect and classify underwater images, thus making the
inspections of Ships quick and safe. The products are now 100% operational and are
deployed in-house for weld inspections and underwater inspections. Once the AI learning is
completed with the current deployment, the commercializing of AI products will be
explored.
Your company is exploring development of innovative AI projects with
the help of Domestic industry, academia and startups. Some of the major projects includes
Artificial Intelligence (AI) enabled Autonomous Underwater Swarm Drones, Artificial
Intelligence Based Predictive Maintenance of Ship Equipment and Artificial Intelligence
Based Energy Management of Fuel Cell .
The in-house projects as well as projects in collaboration
withacademicinstitutionsofreputelikeWelding Research Institute, Trichy, IISc Bangalore and
NID are all aimed at solving the unique issues faced by the Ship Yard during the detailed
design and integration of complex systems into a front line Naval platform. The
specialists' groups functioning under GM(Design) contributes consistently in the
areas of structural analysis, ergonomics & HFE, noise & vibration Control, RCS
management, propulsion system integration, materials and HVAC.
MDL has validated an innovative Shaft Alignment procedure wherein the
propeller shaft line assembly is completed at the Dry Dock itself leading to significant
cost saving to the Yard and reduction in the build period of the vessel.
In addition to the above, MDL has developed state-of- the-art Basic
Design of Naval vessels, incorporating advanced and optimized equipment, machineries,
weapon and arrangement etc.
MDL has initiated implementation of Product Data Management/Product
lifecycle Management(PDM/ PLM) for the Frigates under construction.
Your Company has spent approximately 1.13 % of the total income as
expenditure towards R&D during the FY year 2022-23. The various projects undertaken
under R&D are elaborated in Appendix F'.
2.5. Indigenization & Make in India
- MDL, having set-up a dedicated Department of Indigenization' in Nov 2015, to
provide focused impetus to the Hon'ble Prime Minister's "Make-
in-India" initiative has been successfully able to partner with the Indian industry
to undertake indigenization/import substitution of various equipment/items which have been
imported. Till date MDL has indigenised 27 major items / system
for ships and Submarines. Some of the major items which have been
indigenised include the Fire Fighting System for the Magazines (storage compartment
on-board warship for Missiles, Torpedoes and other ammunition for the close range weapon
system), Soda lime used in the carbon dioxide level monitoring system on-board submarines,
Polychloroprene rubber flow straighter is used to bridge the gap between two casing panel
so as to maintain the flow of water turbulent free, and GRP Panel provisioned for stream
line the structure for a laminar flow and walls around the submarine.
- Further indigenisation efforts are in progress for Shock mounts for attenuating the
vibration levels of on-board machinery of Submarines, Rubber hoses for High pressure
system, Ball valves for critical hydraulic system of submarines are presently in progress.
There are many more items listed on the Srijan Defence Portal.
- MDL has hosted 559 imported items of around H2474.31 Crores on the MoD/DDP initiated
Srijan Defence portal. The website for the same is website www.srijandefence.gov.in.
- MDL has contributed to Positive Indigenisation List (PIL) initiatives of MoD/DDP. The
PIL-1 contains 05 items, PIL-2 contains 06 items, PIL-3 contains 134 items of MDL. Total
05 items are already indigenised amongst all the PILs and remaining items are in different
stages of indigenisation.
- Indigenisation of Conventional Submarine Design:
As a major leap in line with National Mission of "Atmanirbhar
Bharat" and "Make in India" and with an aim of indigenizing the design of
conventional submarines, MDL has initiated an ambitious program of Design and Construction
of Indigenous Conventional Submarine.
- Indigenisation of Submarine Equipment:
MDL has proactively pursued indigenous development for items/
equipment for conventional Submarine. 31 out of total 165 submarine equipment have been
indigenized. Balance 134 have been tendered and PSO for 26 have been issued including for
Main Electric Propulsion Motor, 03 out of 26 equipment have been indigenized for
conventional Submarine.
- QUALITY CONCEPTS
- 5S (Work Place Management System)
Your Company has implemented 5S (Workplace Management System) in
the 20 Workshops/ Stores/Offices.
As a part of sustaining 5S certification, all 20
workshops/offices/stores were re-certified during the period of report for continuation of
5S certification through surveillance audit.
- Quality Circles
The Quality Circle teams are solving at least three numbers work
related problems in a year and are presenting their case studies at Chapter, National and
International Conventions and winning Top Most Awards for the company. The awards won by
the QC teams in the year 2022-2023 are as under:
- 16 Quality Circle teams from MDL presented their case studies in Chapter Convention on
Quality Concepts (CCQC-2022) hosted by M/s Quality Circle Forum of India, Mumbai Chapter
from 17 to 18 Sep '22.
- 16 out of 11 QC teams won Gold (highest) Award and
- 05 QC team won Silver Award.
Awards Won by MDL QC teams at QC Events 22-23.
- "Best QC Case Study Award" for the day one Presentation of CCQC-22 won
by Rainbow QC Team from Welding Department of Shipbuilding.
- 1st and 3rd Prizes in "Slogan" Competition are also won MDL Personnel in
CCQC-22.
- "Best of Best QC Award" [Oral Presentation
+ Case Study] for the day one Presentation of CCQC-22 won by Shramik QC
Team from Fitting and Machinery Shop of Shipbuilding.
- 11 QC teams from MDL participated in National Convention on Quality Concepts (NCQC
2022) Aurangabad held at 27 to 30 Dec-2022. 08 out of 11 QC teams won
PAR Excellence Award and 03 QC teams won Excellent Award.
- 02 Quality Circle Teams from MDL participated in International Convention on Quality
Control Circles (ICQCC 2022) Jakarta, Indonesia held in Nov 2022. Both MDL QC Teams
won Gold Award.
Benchmarking
MDL has a long Legacy of producing more than 800 ships of various
types. Over the year Quality Inspection Procedure has evolved to suit the latest
construction methodology for Ships and Submarine.
MDL has three tier Quality Management System, which comprises
self-Inspection by Production Quality Team constituted from the best qualified executives/
operatives/ staff followed by inspection by QA department and finally by the Customer rep.
(WOT/THIRD PARTY) which leaves no scope for any error right from the raw material stage to
post completion of final product. The non-conformity management with three level
monitoring and advising does not allow any anomaly to remain un- attended/un-resolved.
Other Achievements/Facts:
- Coordination for PDM/PLM:
Quality Management and product Lifecycle Management (PLM) are both
proven disciplines that help companies improve Quality and Product Profitability. All
activities for P17A, specially Inspection process, (except those whose design module
upload is in progress) are being managed through PLM, which offers potential cost savings
and simplicity of a single system. All basic QIP and
one combine project QAP has been converted into PDM/PLM format with
their relevant context parameters.
- Inspection Process Achievement through Yard Practices Documentation and Modification:
- In accordance with the Integrated Construction methodology, the process of existing QIP
for preliminary shaft sighting was modified and implemented in the fourth Frigate.
- To minimize the repeated type of inspection a mechanism was put in place and to save
time, an amendment was done in the compartment dry survey process.
- A detailed Quality Inspection procedure was prepared for identifying the pitting
corrosion areas/eccentricity in shaft of the fourth Destroyer.
- SQC section upgraded and documented the Inspection process of HVAC balancing, which
leads to less rejections and reworks during Harbor acceptance trial (HATS) of ongoing
projects.
- SQC section has also modified and documented the Keel sighting activities for Frigates
by considering mean weight of the Keel plates.
- Integrated Construction & MEGA BLOCKs:
Integrated Constrution (IC) is being implemented on a live project
on Project P17A for the first time in the Warship Building history of the Nation. In IC,
the pre-outfitted blocks are prepared at multiple geographical locations and thereafter
assembled into a Ship of the Yard with a significant benefit of reduced build period. The
concept leverages on executing various activities in parallel instead of Sequentially. One
of the complex activities like shaft alignment that used to take 6-8 months has been
reduced to less than two(2) months.
- AI Enabled Innovations and AI Def Expo 2022
MDL in partnership with IIT Madras, Chennai(IITM) has designed and
developed different ARTIFICIAL INTELEGANCE enabled products, out of which below mentioned
two are being used on regular work by SB QA :
- AI enabled Computerized Radiography.
- AIenabledAdvancePhaseArray Ultrasonic Testing(APAUT).
These products are being developed for improved quality assurance of
weld with less time, less labor consumption and higher efficiency. Both the products are
safer than the conventional methods in many ways. With data migration, they will become
more smart and AI UT can altogether replace radiography (y-rays).
Artificial Intelligence (AI) enabled weld inspection with
computerized radiography has been frequently utilized for all the thickness. The
results are visible as it has reduced the cost of film by reusing the imaging plate in
place of hundreds of films.
Artificial Intelligence (AI) enabled Robotic Weld Inspection using
advanced phased array technique: Once mature, this system will enable us to reduce the
use of conventional RT in many folds.
Your company is also exploring the development of innovative AI
projects like Artificial Intelligence (AI) enabled Autonomous Underwater Swarm Drones,
Artificial Intelligence Based Predictive Maintenance of Ship Equipment and Artificial
Intelligence Based Energy Management of Fuel Cell .
AI Def Expo 2022
Hon'ble Raksha Mantri Shri. Rajnath Singh launched 75
Artificial Intelligence products / solutions developed by DPSUs, SERVICES (IA, IN, IAF),
DRDO, IDex, SIDM and associated Startups, as part of "AiDEF" event on11th July
2022 at Vigyan Bhavan, New Delhi. This event showcased large number of AI projects
/ solutions that increase the efficiency of complex systems /
manufacturing processes of the organizations with AI value addition. MDL presented
it's 3 AI products in "AiDEF "expo which was well appreciated by
Hon'ble Raksha Mantri during his visit at exhibition.
- Quality Management System
Your Company is committed to implement Quality Management Systems
(QMS) as per ISO 9001:2015 standard. 71 Lead Auditors and 77 Internal Auditors are trained
for carrying out the Internal Audits for sustenance of QMS in Shipbuilding Division. As a
part of sustaining QMS as per ISO 9001:2015 Standard,
1st Surveillance Audit for Submarine Division as per QMS ISO 9001:2015
was conducted on 26 & 27 Apr 2022 and successfully completed with NIL'
Non-conformity reports by M/s IRQS with respect to the scope of "Design, Development,
Construction, Refit, Test & Trials of Submarines. Based on audit results, M/s IRQS has
recommended the continuation for "Certificate of Approval" of QMS ISO 9001:2015.
- Information Technology
- Your Company completed the following activities during the year under review:
- SAP Implementation
Implementation of e-Measurement Book (e-MB): In compliance with
Govt. of India guidelines, Online measurement book e-MB' has been developed in
existing SAP system in September 2022. This e-MB system will replace the existing system
of physical Measurement Book for works undertaken by Technical Service Dept. The features
of e-MB system include linking of each MB with service purchase order and its service line
item, Automatic preparation of service entry sheet with e-MB submission, online document
attachment facility.
- Latest know how on IT
MDL is in the process of revamping MDL official website with new
design, look, user features and product centric approach. The purpose and goal of the
revamped website is to provide our Visitors / Clients / Vendors / Employees / other
Stakeholders a user friendly platform which will give an insight of MDL and facilitate
information about MDL's products and Services. The new website shall be interactive
and provides convenient access to information about the company through classification
under intuitive tabs such as About Us, Products, Services, Investors, Sustainability,
Careers, Procurement and Employee information.
- MoD guidelines on Safety measures adopted / safety measures followed
MoD guidelines related to Information Security are complied as and
when received.
- Achievements of IT in MDL
MDL is (International Organization for Standardization /
International Electro Technical Commission) ISO/IEC 27001:2013 (Information Security
Management System) ISMS Certified organization w.e.f November 22, 2022.
Indian Register Quality Systems has certified that the Information
Security Management Systems (ISMS) of Mazagon Dock Shipbuilders Limited (MDL) has been
assessed and found conforming to the Standard ISO/IEC 27001:2013.ISO 27001 is an
international compliance framework set by the International Organization for
Standardization (ISO). MDL has implemented an ISMS Information Security Management System
and achieved conformity with the requirements for its Data Centre at Mumbai, Near Disaster
Recovery (DR) at Mumbai & Far DR at Bangalore under CIT functions. ISO 27001
certification reinforces our commitment to Customers, Partners and Regulators to protect
their information in all forms. This achievement demonstrates MDL's commitment to
continual improvement, development, and protection of Information Assets/Sensitive Data by
implementing appropriate Risk Assessments, Policies & Procedures and Controls.
- Targets set and achieved for 2022-23
- Managed Print Services (MPS) implemented in MDL in January 2023. Around 250+ secured PIN
based printers installed all over the yard. All printers are managed & monitored
centrally through print server, hence print from any location within the yard is possible.
New features of the printers reduced wastage of papers drastically.
- Network Monitoring System is implemented in November 2022 to reduce breakdown/fault
finding of network equipment's.
- Procurement from MSMEs
Your Company is complying with Public Procurement Policy for Micro
and Small Enterprises (MSEs) Order, 2012. Accordingly, out of the total annual
procurement,
25 % procurement is to be made from MSE.During the FY 2022-23, your
Company has achieved 34.20 % procurement from MSEs.
During the FY 2022-23 your Company had conducted two vendor development
programs exclusively for MSes owned by SC/ST and Women entrepreneurs. Your Company had
also arranged supplier meeting (Buyer Seller) during the year. To futher enhance the
vendor base, your Company had participated in eight online/ offline national level
programs conducted by MSME- Development Institute (DI) across India.
- Marketing initiatives
During the financial Year 2022-23, MDL participated in DEFEXPO 2022
in Gandhinagar and Africa Aerospace and Defence (AAD) in City of Tshwane South
Africa
as an exhibitor for marketing and business promotions. The exhibitions
immensely helped in showcasing MDL's capabilities and technical strength in warship
building and submarine construction. The exhibitions were successful in projecting the
image and capabilities of India in the defence production sector in general and warship/
submarine building capabilities in particular. MDL had obtained various leads for
potential future projects. MDL delegation visited 16th International Defence Exhibition
2023 (IDEX) and the 7th edition of Maritime Defence Exhibition 2023 (NAVDEX) held in Abu
Dhabi. MDL was also part of Ministry of Defence, Government of India delegation who
visited and participated in the seminars held in Tanzania, Malaysia, Australia and
Bangladesh organized by High Commission of India. During the seminar MDL interacted with
the Armed forces / Navy representatives wherein Indian shipbuilding capacities and
capabilities were showcased.
- Health Safety & Environment Management System
Your company has been conferred with "Certificate of
Registration" for its integrated Health, Safety & Environment Management System
(HSEMS) in compliance with ISO 14001:2015 and OHSAS 18001:2007
w.e.f. Apr 2019. The Certificate is issued by M/s KBS Certification, a
firm accredited by Joint Accreditation System of Australia and New Zealand (JAS-ANZ), a
member of the International Accreditation Forum (IAF).
MDL having qualified the above standards has joined the exclusive club
of companies, committed to sustainable development by continual improvement in performance
towards Health, Safety & Environment in their operations/ processes. This
qualification fortifies MDL's credibility in all its functioning and future business
prospects.
The standard OHSAS 18001:2007 was upgraded to ISO 45001:2018 w.e.f.
Sept 2021. Accordingly, MDL successfully completed the transition of its HSEMS
system from OHSAS 18001:2007 to ISO 45001:2018 in Sept 2021. The
Current HSEMS Certification is valid till July 2025.
- Human Resource Development
Your company has been putting emphasis on the overall growth &
development of Human Resources and is committed to continue its relentless efforts in
updating the competencies of its executives through exposure to various Learning &
Development programs organized by Institutes of National Importance and through sponsoring
function based Seminar
/ Conferences / workshops. Besides, in order to ensure smooth supply of
skillsets for Company's requirement and shipbuilding industry, various training
programs viz. trainings of Trade Apprentices under the Apprentices Act, 1961, BOAT
Apprentices and Marine Engineering students under the aegis of DG, Shipping at the
Company's run Apprentice Training School have regularly been organized.
A list of Programmes/Trainings conducted during 2022- 23 is as below:
- To provide an opportunity to the grass root level employees to place their
issues/suggestions directly before the management, an Interactive session of CMD &
D(CP&P) along with employees under theme Sanskar Se Samrudhi' has been
started since 09 Mar 2023 onwards wherein a total of 782 employees have participated under
HR initiative. This Platform has received wide appreciation and is designed to bring a
cultural change in the organization.
- A customised program Ethics for Corporate Governance' for Finance Directors
of all DPSUs was conducted on 11 Nov 22 through External faculty at MDL.
- Three programs on Intellectual Property Rights (IPR), MOD, GOI's flagship program
were conducted at MDL through External faculty to create an IPR driven Innovation Culture
wherein 179 employees were benefited.
- A Customized Online Training platform (COLT) was developed by BEL for training
Executives for IPR. 34 Executives from MDL were trained through this platform.
- In accordance with CVC guidelines, with a view to develop a highly ethical organisation,
Executives were nominated for Exposure Visit at National Dairy Development Board (NDDB),
Anand, Gujarat.
The exposure visit was a mix of classroom training with experiential
learning by way of village visit.
3 programs have already been conducted and
65 Executives trained. The Executives trained at NDDB, Anand further
shared the knowledge via a capsule program with a view to develop the Culture, Ethics
& Values for MDL. 12 such programs were conducted and around 1565 employees were
trained.
- Executives who had received Certified Welding Inspector' training from
Welding Research Institute (WRI), Trichy during FY 2021-22 further shared their knowledge
to around 269 non-Executives during FY 2022-23.
- A customised certification program on Business Communication Skills' was
conducted for a batch of 23 Executives through Engineering Staff College of India.
- Four programs were conducted on Retirement Planning' for the retiring
employees. These programs were comprehensive programs encompassing 4 aspects of Diet
Management', Wealth Management', Mind Management' &
Wellness'.
- To hone the technical skills, Executives were nominated for various training programs
like Fundamentals of Coating and Lining for Paint Officers, Industry 4.0, Material
Management, Technology & Advances in Heat Treatment', Procurement through GeM
Portal, Non-Destructive Testing in Level-II & III, Vibration Analysis etc.
- A customised training program on Project Management' was developed and
conducted by National Academy of Indian Railways (NAIR) at Vadodara for 30 MDL Executives.
- Executives were nominated outside MDL for various programs conducted by Department of
Public Enterprises (DPE). Topics include Project Planning & Monitoring',
Outsourcing & Contract Management', Strategic Marketing
Management', Industrial Artificial Intelligence in Industry 4.0',
Leadership Development', Building Competencies for Personal
Excellence', Risk Management', Decision Making with Data
Analytics', Corporate Branding in Digital Era', Ethics in Governance
& Preventive Vigilance', Supply Chain Management', Capital
Market Reforms, Registration, e-invoicing, returns, TDS & GST', etc.
- Five programs on Wealth Management' were conducted wherein on roll employees
were benefited.
- A Neuro Linguistic Programming (NLP) course was conducted through External faculty for
HR Executives, wherein 10 HR Executives were certified as NLP Practitioner.
- With a view to develop a family feeling amongst the employees and dedication towards
work, 2 capsule programs were developed viz Soch Badlo' for Non-Executives and
Soch Banao' for Executives. A total of 633 Non-Executives were covered under
Soch Badlo' & 577 Executives covered under Soch Banao'.
- One outbound Team Building' program was conducted for around 45 Senior level
Executives at Lonavala. Similarly, 10 Outbound Team Building' programs were
conducted for Non-Executives at RCF, Thal, Alibag wherein around 249 Non- Executives were
covered under the said program.
- Information Security is a highly sensitive issue in current times and being a Defence
PSU, further adds on to the vulnerability of the information. To sensitise the employees
on the importance of Information Security, 10 programs were conducted in-house, benefiting
around 684 employees.
- Cyber Security, which is of utmost importance in today's digital world needs to be
addressed with high sensitivity. Around 12 programs were conducted on Cyber
Security' benefiting 620 employees.
- A capsule program developed comprising Health', Safety' &
Fire Fighting' was developed and conducted in-house. 30 programs have been
conducted on the said topic and around 700 Employees were trained.
- Two days capsule program on Preventive Vigilance' was developed in line with
CVC guidelines and 2 programs were conducted, benefiting around 85 employees.
- A customised program Life Vision Architect' was developed for MDL employees
with a view to develop the employees internally & externally and develop dedication
towards work. The program was conducted at Jeevanvidya foundation, Karjat; 10 programs
were conducted and 993 employees were benefited.
- With a view to develop a pool of training faculty in- house, employees were nominated to
Management of Training for Training Managers' was conducted at Shimla, wherein
16 employees were trained.
- Executives were nominated for External training programs for development of their
Technical, Managerial and Behavioural Skills such as National Cost Convention'
through ICAI, Legal Aspects of Contract Management' through ASCI, Higher
Command Course' through Army War College, Enhancing Assertiveness &
Positive Attitude & Disciplinary Rules, Procedure and Vigilance Proceedings in the
Organization' through DPC, Emotional Intelligence-The Language of Leadership in
a new hybrid world through IPE', How to be an Effective Vigilance Officer'
through Sterling Institute of Corporate Conference and Events, International
Maritime Law' through International Business Conference, Innovation of Decoding
of Human Resources' through Indian Society for Training and Development,
Leadership Excellence for Atma Nirbhar Bharat' through Indian Institute of
Public Administration, Materials, Engineering, Technology and Advances in Heat
Treatment' through ASM International, Strategy for Exports and Export
Management & Executives Development Program for Defence Industries' through
National Academy of Defence Production, ESG (Energy, Social & Governance) for
Industry Transformation' through National Productivity Council (NPC),
Administrative Effectiveness, Focus: Human Resource Management',
Administrative Effectiveness, Focus Preventive Vigilance, E-Procurement &
RTI', Developing Managerial Leadership Skill & E-Procurement &
Tendering; GFR' through National Productivity Council, Interactive Workshop on
Preparation of Financial Statements as per best Financial Reporting Practices'
through Standing Conference of Public Enterprises, Procurement by CPSEs from MSEs
and through GeM' through Indian Institute of Materials Management, Workshop on
RTI' through Standing Conference of Public Enterprises, Emotional Intelligence
for Vigilance Officers' through Sterling Institute of Corporate Conference and
Events, Workshop on Power Quality' through Centre for Indian Industry,
Transformational Leadership' through Manushou Uthan.
- One Executive was nominated for Technical Management Course' at INS Mandovi.
- Special emphasis is laid in MDL to develop the skills of women employees at MDL. In
order to ensure safety and dignity of women employees, MDL had conducted two sensitization
programs on Prevention of Sexual Harassment of Women at Workplace' (POSH). A
total of 97 Employees had participated in the said program. 30th Regional Meet of Forum of
Women in Public Sector (WIPS) was
conducted at Goa wherein 12 Women employees had been participated and
in National Meet of Forum of women in Public Sector (WIPS) was conducted at Kolkata
wherein 13 women employees participated. Training on Women Empowerment' was
conducted wherein 130 women employees participated. On the occasion of Women's Day,
MDL organized Self Defence program for women Executives wherein 25 women Executives
benefited. Apart from that, participation of lady employees is ensured in all the above
mentioned programs.
- An application e-library' was developed on MDL Intranet Portal for knowledge
sharing, where all employees can contribute with e-books/ journals/ magazines to be read
by all other employees.
- Various Institutes like Ordnance Factory, ISRO, RCF, ITI and other Educational
Institutes visited MDL as part of Industry Institute Interface leading to interaction
between MDL and Corporates/ Colleges.
- MDC had conducted training for Board Level Executives on Strategic Conclave'
on 28-29 Jan 2023 wherein 06 Board Level Executives participated, and Masterclass for
Directors was conducted on 11-13 March 2023.
- National Integration:
Your Company has undertaken a number of measures, which have
immensely facilitated towards National Integration. Some of these activities are
enumerated below:
- MDL follows all directives of the Government with regard to recruitment of
SCs/STs/OBCs/PWDs and Minorities.
- Observes Quami Ekta Diwas' every year and extends financial assistance. This
amount is primarily spent towards those children, who become destitute and orphan in
Communal, Caste, Ethnic or Terrorist violence for Care, giving Education and Training for
their effective rehabilitation.
- Consistent efforts in bringing the backward and downtrodden of the society in the
mainstream through various CSR initiatives in the field of Health, Sanitation, Skill
Development, Rural Development, Education and Rehabilitation etc.
- Women Empowerment through various measures such as Learning and Development initiatives,
Committee on WIPS and through Internal Complaint Committee (ICC) for redress of complaints
of Sexual Harassment.
- New initiative by HR- SBC during FY 2022-23
- Your company assists employees in registering for pension under EPS-95 scheme. MDL has
taken significant step in providing PPOs to retiring employees on the day of their
retirement under the scheme PRAYAAS implemented by EPFO. Help desk has been set up under
the concept of "Pension Mitra" to assist employees for exercising option for
higher pension under the Para 11 (3) and Para 11
(4) of Employees Pension Scheme, 1995 in terms of direction given by
Hon'ble Supreme Court vide Order dated 04th November 2022 and subsequent guidelines
issued by EPFO in this regard.
- All Non-Executives (retired before 2006, retired between 2006-2016 and retired after
2017) are extended similar coverage for medical expenses.
- Earlier Health Insurance Policies for providing medical expenses coverage to retired
employees is replaced by Self-Funded Scheme which is managed by MDL with assistance from
Health Benefit Service Provider.
- Welfare Activities
Your Company values its human resources highly. To keep their
morale high, apart from statutory welfare measures, your company extends several other
welfare activities.
- Life Insurance Coverage:
Your Company has arranged various Group Savings Linked Insurance
Schemes, which provide financial assistance in case of untimely death (accidental/
illness) of an employee while on duty. Besides, Group Personal Accident Insurance Scheme
has also been in place, which provides 24 hours' coverage for compensation in the
event of an accident of an employee resulting in death or permanent / partial disability.
- Medical Scheme:
All the serving employees, including their dependent family
members, are covered under the Medical scheme. Hospitalization claims of around H 45.78
Crore were disbursed towards treatment of the employees and their dependent family members
during the FY 2022-23.
- Other Welfare Activities:
Your Company also provides number of welfare measures viz., Onsite
Dispensary and Occupational Health Centre, Hospitalization, Wellness Centre,
Onsite Gym & Club, Uniform, Monsoon Gears, Subsidized Canteen
Facility, Scholarship to Unemployed Wards of Employees etc.
- Superannuation Benefits to Ex-employees
- Post-Retirement Medical Scheme (PRMS):
Your Company has Post-Retirement Medical Scheme to provide medical
facilities to the retired employees and their spouse. The Scheme is administered through a
Health Service Benefit Provider and is funded directly by MDL. In terms of the Scheme,
expenses incurred beyond the stipulated ceiling are also provided in case of critical
diseases. MDL also provides medical expenses to Executives retired before 2007 and
Non-Executives retired before 2006 as per extant Scheme.
Your Company has facilitated Group Personal Accident Policy covering
all active employees (Executives and Non-Executives).
- Executive's Superannuation (Pension) Scheme
Defined Contributory Superannuation (Pension) Scheme is in
operation for Executives which is in line with the Department of Public Enterprise's
Pay Revision Guidelines, operated through NPS, New Pension Scheme. MDL contributes 7% of
Basic pay and DA to the Superannuation Pension Fund whereas minimum 3% contribution is
made by the employees which is credited to National Pension Scheme.
- Non-Executive's Superannuation (Pension) Scheme
Defined Contributory Superannuation (Pension) Scheme for
Non-Executives is also operational in MDL similar to Pension Scheme for executives. The
pension scheme is operated through NPS, New Pension Scheme. MDL contributes 5% of Basic
pay and DA to the Superannuation Pension Fund whereas minimum 3% contribution is made by
the employees which is credited to National Pension Scheme.
- Manpower and Reservation of Posts for SCs/STs:
- The Company has been following Presidential Directives of the Government with regard to
reservation of posts for SCs/STs in recruitments.
- Total manpower strength as on 31 Mar 2023 is at 5914 (including functional directors)
out of which the number of persons on temporary rolls was 2926 of the total strength, 96
are Ex-servicemen, 825 are of Schedule Caste and 487 are of Scheduled Tribes. The
percentage of Scheduled Caste and Scheduled Tribes in respect of Employees stood at 13.95%
and 8.24% respectively.
- Number of persons on temporary rolls as on 31 Mar 2023 is 2926 out of which 388 belong
to Scheduled Caste and 272 belong to the Scheduled Tribes category.
- Details of the statement showing position regarding representation of Schedule Castes
and Schedule Tribes in various categories of post on 01 Jan 2022 and 01 Jan 2023 is
annexed at Appendix A'
- Employment of Women:
As per the recommendation No.51, Para (ii)(a) of the National
Commission for Women (NCW) in its Annual Report for the year 1995-96, the employment
position of Women as on 31 Mar 2023 is given below as directed by the Ministry of Defence,
vide their letter Nos. 39(6)/99/D(B&C), dated 27 Aug 1999.
Note: MDL being a heavy engineering industry, the number of women
applying in various trades and disciplines against vacancies notified is low.
- Executives
Sr. no. |
Grade |
No. of Employees |
Women |
Percentage |
1 |
E0 |
2 |
1 |
50.0 |
2 |
E1 |
8 |
2 |
25.0 |
3 |
E2 |
55 |
7 |
12.7 |
4 |
E3 |
180 |
18 |
10.0 |
5 |
E4 |
321 |
17 |
5.3 |
6 |
E5 |
201 |
7 |
3.5 |
7 |
E6 |
107 |
8 |
7.5 |
8 |
E7 |
43 |
7 |
16.3 |
9 |
E8 |
15 |
|
0 |
10 |
E9 |
4 |
|
0 |
11 |
CVO
|
1 |
|
0 |
12 |
Functional Directors |
4 |
|
0 |
|
Total |
941 |
67.0 |
7.12 |
- 111Non-Executives (Operatives)
Sr. no |
Grade |
No. of Employees |
Women |
Percentage |
5 |
WG-05 |
2387 |
57 |
2.39 |
6 |
WG-06 |
655 |
14 |
2.14 |
7 |
WG-07 |
788 |
19 |
2.41 |
8 |
WG-08 |
74
|
0 |
0 |
9 |
WG-09 |
92 |
0 |
0 |
10 |
WG-10 |
36 |
0 |
0 |
11 |
WG-3A |
2 |
0 |
0 |
12 |
WG-4A |
91 |
0 |
0 |
|
Total |
4598 |
90 |
1.96 |
- Non-Executives (Staff)
Sr no. |
Grade
|
No. of Employees |
Women |
Percentage |
1 |
SI-02
|
2 |
0 |
0 |
2 |
SI-03
|
1 |
0 |
0 |
3 |
SI-05
|
237
|
41 |
17.30 |
4 |
SI-06
|
16
|
0 |
0 |
5 |
SI-07
|
51
|
10 |
19.61 |
6 |
SI-08
|
7 |
1 |
14 |
7 |
SI-09
|
25
|
2 |
8.00 |
8 |
SI-10
|
24
|
4 |
16.67 |
9 |
SI-4A
|
11
|
0 |
0.0 |
|
Total
|
374
|
58 |
15.5 |
3.6. Persons with Disabilities (PWD) As On 31 Mar 2023:
The total number of physically challenged employees as on 31 Mar
2023 was 111 and its percentage to total employees works out to 1.88%.
Sr no. |
Group
|
HI
|
LD |
VI |
TOTAL |
1 |
GROUP-A
|
7
|
13 |
8 |
28 |
2 |
GROUP-B
|
0
|
0 |
0 |
0 |
3 |
GROUP-C
|
9
|
69 |
5 |
83 |
|
Total
|
16 |
82 |
13 |
111 |
HI- Hearing Impaired, LD-Locomotive Disability, VI-Visually Impaired.
- Industrial Relations
Industrial relation scenario during this period was cordial and
harmonious. There were no man-hours lost on account of Industrial conflict. In the absence
of a recognized Union, efforts were made to resolve issues of mutual concern through
deliberations with the Unions on the Bargaining Council and other unions.
The Meetings with the Unions on Bargaining Council are held on regular
basis and issues of mutual concerns like safety precautions, issues relating to Covid19
pandemic, Recruitment of Fixed Term employees etc. are settled
through bilateral negotiation process and Industrial Relations &
Labour situation at MDL, Mumbai, in general, is normal and peaceful.
- Reservation of Posts
Your company has been observing all the Government directives and
instructions issued from time to time on reservation of posts for SCs / STs / OBCs. All
the rosters of SC / ST / OBC / PWD are maintained, which is inspected by the respective
Liaison Officer from time to time and perused by the SC/ST Unions also. Detailed
statistics regarding the total number of employees, number of women employees, recruitment
made during the calendar year 2022 and the representation of SCs
/ STs / Ex-servicemen as on 01 Jan 2022 are given at Appendices A, B
& C to this Report.
- Grievance Redressal Committees for SCs/STs:
Weaker sections of the society are given adequate protection in the
form of just and equitable treatment at the hands of employer. To ensure the same, a
separate "Grievance Redressal Cell" has been constituted for SC / ST employees.
A quarterly meeting of representatives of SC/ST is held with Director (CP&P) wherein
grievances related to SC/ST are discussed and resolved.
- Report on Sexual Harassment under the Act.
Following enactment of The Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redress) Act, 2013, an Internal Complaint Committee (ICC) has
been in place to deal with and redress complaints on sexual harassment. 01 (One)
complaints were received during the fiscal year out of which 01 was disposed-off.
Error! Reference source not found.
- Awards and Recognitions:
S. No |
Awarding Authority |
Awards For |
1 |
Convention on Quality Concepts |
- 16 Quality Circle teams from MDL presented their case studies in Chapter Convention on
Quality Concepts (CCQC-2022) hosted by M/s Quality Circle Forum of India, Mumbai Chapter
from 17 to 18 Sep 2022.
- 11 out of 16 QC teams won Gold (highest) Award and
- 05 QC team won Silver Award.
|
2 |
International Convention on Quality Control
Circles (ICQCC 2022) Jakarta, Indonesia |
02 Quality Circle Teams from MDL participated in
International Convention on Quality Control Circles (ICQCC 2022) Jakarta, Indonesia held
in Nov 2022. Both MDL QC Teams won Gold Award |
3 |
National Convention on Quality Concepts (NCQC
2022) |
11 QC teams from MDL
participated in National Convention on Quality Concepts (NCQC 2022) Aurangabad held
at 27 to 30 Dec-2022. 08 out of 11 QC teams won PAR Excellence Award and 03 QC teams won
Excellent Award. |
4 |
MDL's in-house magazine
"Jaltarang" |
MDL's in-house magazine
"Jaltarang" was selected as the best magazine by Ashirwad Rajbhasha Sansthan and
on 20 September 2022 was awarded first prize by Honorable Governor Shri Bhagat Singh
Koshyari
at Raj Bhavan. |
- Official Language Implementation
Your Company has been adhering to the directives issued by the
Govt. of India from time to time for extensive use of Hindi for official purposes.
MDL's efforts towards progressive use of Official Language are detailed below:
- Hindi Diwas was celebrated in MDL on 14 September 2022 and Hindi Pakhwada was celebrated
from 19 September 2022 to 29 September 2022 in which Hindi typing, Quiz, dictation,
Translation, Hindi essay, Story-telling, Poetry-reading and Singing competitions were
organized. Separate competitions are organized in MDL for Hindi speaking and non- Hindi
speaking employees and officers. The program of singing competition started with the
lighting of the lamp by the CMD.
- Under the Hindi Teaching Scheme, in the year 2022, in January-May and July-November
session, a total of 17 officers/employees passed the Parangat examination.
- MDL's in-house magazine "Jaltarang" was selected as the best magazine by
Ashirwad Rajbhasha Sansthan and on 20 September 2022 was awarded first prize by Honorable
Governor Shri Bhagat Singh Koshyari at Raj Bhavan.
- Official language magazine "Jaltarang" published by MDL was awarded first
prize on 25 July, 2022 by Mumbai TOLIC (Town Official Language Implementation Committee).
- Information related to implementation of Hindi was given through Hindi workshop by Hindi
officers for the newly selected officers in MDL.
- 06 digital boards has been installed for displaying of "Aaj ka Shabd" and
"Aaj ka Vichar" at major places of the company
- Officers and employees were given an incentive award of H 5,000/- for maximum Hindi
typing.
- Officer has been designated as Hindi Coordinator in each department of MDL for better
implementation of Hindi.
- Hindi Diwas and Akhil Bharatiya Rajbhasha Sammelan was organized in Surat on 14-15
September, 2022 where 02 officers/employees participated in the Official Language
Conference.
- Vigilance Activities
Vigilance is an integral Managerial function. Vigilance department
takes appropriate action to carry out preventive, participative and punitive vigilance in
Mazagon Dock Shipbuilders Limited (MDL). It promotes transparency,
integrity, fairness, accountability in various activities including all commercial
procurement functions, recruitment, outsourcing activities etc. Vigilance department
suggests Systemic Improvements based on the investigation of the complaints/ spot checks/
CTE type examination and also ensures that integrity is maintained in all functions of the
organization.
Activities carried out by Vigilance Department during the period from
01 April 2022 to 31 March 2023 are as follows.
- CTE Type Examination:
As a part of Preventive Vigilance, CTE type intensive examination
of Procurements/ Service Contracts/ Consultancy Contracts/ Subcontracts/ Outsourcing
orders are taken to verify compliance to prescribed procedures and statutory norms/
regulations. Five (05) such CTE type examinations were carried out by Vigilance department
and Systemic Improvements were suggested.
- Complaints:
Vigilance department received 47 complaints. Investigation of 11
complaints were pending from 2021-22. Out of these cumulative 58 nos., investigation has
been completed for 51 complaints and the remaining 07 complaints are under investigation
at various stages as on 31 March 2023.
- Spot check/ Surprise Checks:
Surprise/Spot checks of various functions of the organization are
also being conducted by Vigilance department. 13 nos. surprise/spot checks have been
conducted and suggestions/corrective measures were recommended for Systemic Improvements.
- Scrutiny of Audit Reports & CAG Reports:
40 nos. of Audit Reports (CAG-01 no. & Internal Audit Reports
-39 nos.) were scrutinized.
- Disciplinary Proceedings:
The pending Disciplinary proceedings against delinquent executives
are being closely monitored by Vigilance Department. As on 31 March 2023, 02 Major
Disciplinary Proceeding are in process. Penal action is recommended against 03 employees
and administrative actions such as recordable warning, advisory, counseling etc. were
recommended against
10 employees. Administrative actions were taken against 13 employees.
- Vigilance Clearances:
Timely vigilance clearances were issued for personnel/ officials
proceeding on foreign tours
and official duty abroad, compulsory retirement (FR 56J), separation
(resignation/ retirement), DPC (Promotion), Board Level PESB Recruitment and attending
interview/ forwarding application.
- Scrutiny of Annual Property Returns (APRs) of executives:
82 APRs of MDL Executives were scrutinized by Vigilance department
manually. From the year 2022 onwards, online submission of APRs has been implemented.
Exception report to enable faster scrutiny is under development.
- Preventive Vigilance:
Sixteen (16) Systemic Improvements in the areas of procurement,
project execution and other organizational functions like HR, Medical, Administration etc.
were suggested to management as an initiative for Preventive Vigilance and the same were
accepted by the management and promulgated through Circulars by Directors concerned.
- Vigilance Awareness Week Activities:
- Observance of VAW 2022 on the theme "Corruption free India for a developed
Nation" as per CVC guidelines, was commenced with the Integrity Pledge on 31
October.2022 (Monday) at 10:00 a.m. during the Inaugural function which was led by CMD,
MDL and attended by all Functional Directors, CVO, EDs and GMs/HODs. The digital version
of MDL's In-house Vigilance Journal "Sucharita (Vol. XXV)" was released
during the Inaugural function of VAW-2022.
- In house activities like Essay, Slogan and Poster competitions were organized. An online
quiz competition for all MDL employees and an online vendors meet were also organized to
create awareness about Vigilance. A Street Play based on the theme of VAW 2022 was
performed by students of Apprentice Training School of MDL at prominent places within MDL.
Awareness on PIDPI was promoted by sending bulk SMS to stakeholders. A session on
Preventive Vigilance and Case Studies was taken by CVO for executives of the Company.
- Outreach activities like Mini Marathon, Drawing, Essay, Slogan and Rangoli Competition
were also organized at Zilla Parishad School, Shahapur and D B Mohane Ashram Shala,
Shahapur, Maharashtra for creating awareness about Corruption among school children and
citizens.
- Similarly, Essay competition in NSTI(General), Mumbai and Drawing competition in
NSTI(Women), Mumbai were also conducted on the theme of VAW 2022. Total 328 students of
these institutes participated in the said competitions.
- Certificates/Prize awardswere given away to the winners of various competitions
organized.
- During observance of VAW-2022, Sensitization programs on Vigilance Awareness and
Preventive Vigilance were organised using in-house as well as external resources for MDL
employees covering 336 executives and 243 non-executives at MDL so as to create awareness
for eradicating corruption. Two-Days Training module on Preventive Vigilance as part of
Induction/ Mid-Career Training:
As per CVC guidelines to all CPSEs, 2-Days training module has been
effectively implemented for MDL Executives at the Induction/Mid-Career level. Training has
been imparted by MDL Vigilance Team to a total of 85 executives in 2 such batches during
the year, in co-ordination with MDC.
- Exposure visit of executives at NDDB Anand:
In terms of the CVC Letter No. 015/MXC/017 (Pt 16) dated 08
Jan' 21, MDL in coordination with NDDB, Anand organized Exposure Visit for executives
at induction and mid-career level. This training at NDDB was attended by 100 executives of
MDL, in 03 batches for induction level and 02 batches for mid-carrier level executives.
- Capacity Building Initiative:
Vigilance executives are trained on various vigilance related
aspects through internal & external resources; in turn these executives impart
training to MDL Executives & Non-Executives.
- Governance & Sustainability
- Corporate Governance
In terms of Regulation 34 read with Schedule V of SEBI (LODR)
Regulations and the DPE Guidelines, a report on Corporate Governance for the year ended 31
March, 2023 has been prepared and annexed to this Report. The Company's Secretarial
Auditor has issued a certificate on Corporate Governance and is appended to the Corporate
Governance Report at Appendix D'.
- Implementation of RTI Act, 2005
Under the Right to Information (RTI) Act, 2005, to facilitate
provision of information to the citizens requesting for the same, your Company has evolved
necessary structure by designating officers as Assistant Public Information Officer,
Public Information Officer and Appellate Authority for the purpose of implementation of
the Right to Information Act in the Company. During the year, the Company received
145 applications and 09 First appeals through online/ offline mode. The
information/ replies sought for were duly furnished. The Quarterly Returns are being
uploaded on the Central Information Commission's (CIC) website. Proactive disclosures of
information were updated on the website of MDL under RTI Link as directed by CIC
- Meetings of the Board
Against the Statutory requirement of minimum 4 meetings of the
Board in a financial year, Ten meetings of the Board of Directors of the Company were
held. These were on 30 May 2022, 30 July 2022, 10 Aug 2022, 27 Sep 2022, 10 Nov
2022, 06 Jan 2023, 21 Jan 2023, 30 Jan 2023, 28 Feb 2023
and 28 March 2023 were held during FY 2022-23.
- Company'sPolicyonDirectorsAppointment and Remuneration
As your Company is a Central Government Public Sector
Enterprise(CPSE), the appointment, tenure and remuneration of Directors (Functional
Directors including the CMD) are determined by Government of India through Public
Enterprises Selection Board (PESB), The terms and conditions of appointment, including the
period of appointment, the scale of pay and other entitlements are notified by the
Government of India.
The Ministry of Defence (Administrative Ministry) appoints the
Government Nominee Directors and they are not entitled to any remuneration or sitting
fees.
The non-executive Independent Directors are appointed by the Government
of India and they are entitled to sitting fees for attending the Board/Committee meetings
as prescribed by the Board in adherence with the statutory rules and regulations.
According, to the Ministry of Corporate Affairs, Government of
India's Gazette Notification No GSR 463 (E ) dated 5 June 2015, your Company, a
Government Company, is not required to frame a Policy on Directors' appointment and
remuneration including criteria for determining qualifications, evaluation etc., under
section 134(3)( e ) of the Companies Act.
- Board Evaluation
Pursuant, to the Ministry of Corporate Affairs, Government of
India's Gazette Notification No GSR 463 (E ) dated 5 June 2015, the statement
indicating the manner in which formal annual evaluation has been made by the Board of its
own performance and that of its committees and individual directors is not required for
your Company, as the performance of directors is evaluated by the Administrative Ministry.
- Changes in the Board
The following changes took place in the Directorship of the Company
during the year under review:-
VAdm. Narayan Prasad, IN(Retd) (DIN 08644492) was appointed as the
Chairman & Managing Director w.e.f.
30 December 2019 pursuant to appointment letter from Department of
Defence Production, Ministry of Defence dated 29 November 2019. He superannuated on 31
Januaray 2023, the Board placed on record its appreciation for the valuable support,
contribution and guidance provided by VAdm Narayan Prasad, IN (Retd) during his tenure.
Shri. Sanjeev Singhal, (DIN 07642358) Director(Finance) has been
entrusted with additional charge of CMD of the Company w.e.f. 01 February 2023 as per the
directions of Department of Defence Production, Ministry of Defence.
Shri. Anurag Bajpai,JS(DIP/P&C) (DIN 08948155) was appointed as the
Government Nominee Director ( Part Time Official Director) on the Board of the Company
w.e.f 10 November 2022 in place of Shri Sanjay Jaju, ex- Additional
Secretary (DP) (DIN 01671018) pursuant to orders conveyed by the Ministry of Defence vide
their letter dated 10 November, 2022. The Board placed on record it's appreciation for the
support and contribution provided by Shri Sanjay Jaju during his tenure.
Cdr. Vasudev Puranik, IN (Retd) (DIN 09623387) was appointed as the
Director (Corporate Planning & Personel) w.e.f. 09 June 2022 pursuant to appointment
letter from Department of Defence Production, Ministry of Defence dated 08 June 2022.
Shri. Dattaprasad Kholkar (DIN 10054086) was appointed as Independent
Director (Part Time Non- Official) w.e.f. 23 Feb 2023 pursuant to appointment letter from
Department of Defence Production, Ministry of Defence dated 13 Feb 2023.
Shri. Shambhuprasad B Tundiya (DIN 03245725) was appointed as
Independent Director (Part Time Non- Official) w.e.f. 24 Dec 2021 pursuant to appointment
letter from Department of Defence Production, Ministry of Defence dated 24 Dec 2021. He
resigned on 13 Nov 2022 due to pre-ocupations, the Board placed on record its appreciation
for the support and contribution provided by Shri. Shambhuprasad B Tundiya during his
tenure.
- Constitution of Audit Committee
Audit Committee pursuant to the provisions of Section 177 of the
Companies Act, 2013 and the Rules made thereunder has been constituted by the Board. The
Committee acts in accordance with the terms of reference as approved by the Board. The
composition and other details are disclosed in the Corporate Governance Report. All
recommendations made by the Audit Committee were accepted by the Board.
- Declaration and Meeting of Independent Directors
All Independent Directors of your Company have confirmed that they
meet the criteria of Independence as prescribed under both the Companies Act, 2013 and the
SEBI Listing Regulations.
A Separate Meeting of Independent Directors in accordance with the
provisions of the Companies Act, 2013 was held on 28 March 2023 and all the Independent
Directors were present.
The Independent Directors have also confirmed that they have complied
with the "Code of Business Conduct and Ethics for Board Members and Senior
Management" of the Company
- Corporate Social Responsibility
The Company is committed to all its stakeholders to conduct
business in an economically, socially and environmentally sustainable manner as part of
its CSR & Sustainability policy.
Your Company is committed to undertake various programs for integrating
social and business goals in a sustainable manner through inclusive growth so as to make a
positive impact for the society at large. Your Company has adopted Corporate Social
Responsibility & Sustainability Policy in compliance with Section 135 of the Companies
Act 2013 and Rules framed there under.
The CSR Budget of your company for the FY 2022-23 was H13.92 crore (2%
of average profit of the previous three financial years as per section 198 of Companies
Act 2013). In addition to above, a sum of H4.56 crore were carried forward from the
previous financial year (2021-22). Out of total amount of H18.48 crore, your company spent
H12.61 crore towards CSR activities during FY 2022-23 (current FY). Balance sum of H5.87
crore remains unspent
as several projects/programs could not be accomplished/ completed due
to delay in the submission of required documents and/or delay in execution of some
projects by the implementing agencies. The same was transferred to the Unspent CSR
expenses on 26 April 2023.
Your Company has executed 27 projects as part of its CSR initiatives
mainly in sectors of Education, Health & Sanitation, Skill Development and Village
Development. The executed projects are in line with schedule VII of the Companies Act. The
details of the major projects executed in FY 2022-23 are as under: -
- COVID Management:
Keeping MDL's commitment to support the nation's fight
against the Covid-19 pandemic, your Company has supported Cama & Albless Hospital,
Mumbai towards supply of oxygen from Oxygen Tank to the hospital wards.
- Aspirational Districts:
In line with Pradhan Mantri TB Mukt Bharat Abhiyaan, your
Company has supported District Administration in eradication of TB in Nandurbar district
(one of the Aspirational Districts in Maharashtra). Under this project, MDL has supported
District Administration Nandurbar in setting up of a mobile diagnostic facility and
also provided nutrition support to 400 TB patients.
MDL has continued its support for Gift Milk project in Gadchiroli
district (another Aspirational district of Maharashtra) under which fortified milk was
supplied to about 4400 students of 40 Govt. Schools in the district.
- Healthcare & Sanitation:
Your Company has continued undertaking new initiatives
in the Healthcare sector in the FY 2022-23. MDL has supported a Charitable Hospital in
Kota district (Rajasthan) by providing medical equipment. MDL has also supported
construction of health & nutritional facility in Rajkot district (Gujarat). Your
company has also commenced Anemia Mukt Bharat project which will benefit 10000 patients.
MDL continued its project in supporting and counseling more than 93,000
cancer patients at nine Regional Cancer Centres in 5 different States/ UTs of India.
Further, MDL provided much needed support for intellectually deficient children and adults
at Children's Home in Mankhurd for the benefit of 265 children who are victims of
natural calamity, social apathy and loss of parents. MDL has also made contribution to
PMCARES fund.
In line with the Swachh Bharat Mission of Govt. of India, your company
has continued the clean-ship of areas/ wards in Mazagon, Mumbai. MDL has also made
contribution to Swacch Bharat Kosh.
- Education Sector:
Your Company has provided a 45 seater bus to Govt. Sainik School,
Tilaiya in Jharkhand by augmenting transport facility for the school students.
MDL has continued its support for "MDL Super 10" project and
a total of 25 students from Shahapur area (Thane district) have been provided support to
get quality education at Bhonsala Military School, Nagpur.
- Village Development:
Your Company has continued its support for Kharade Gram
Panchayat in Shahapur District Thane under Model Village Development project and had taken
several new initiatives on school education, drinking water and health sectors benefitting
around 9000 persons in 04 Gram Panchayatas. MDL has also provided support for construction
of community hall in Yadadri Bhongir district of Telangana.
- Skill Development:
Your company has supported vocational training to 100 youths as
Machine Operator in Plastics Processing and Injection Moulding trade in Aurangabad and
Chandrapur through Central Institute of Petrochemical Engineering & Technology
(CIPET). Besides this, MDL has continued its support for apprenticeship training at
Apprenticeship Training School, MDL. Your company has also supported 300 students of Govt.
ITI Chikaldhara in Amravati district through scholarship and exposure visit.
- Support for War Widows:
Your company has supported construction of hostel (4 units
of 1BHK) for war widows (Veer Naris) at Mankhurd in Mumbai. MDL has also made contribution
to Armed Forces Flag Day Fund.
- Support to Technological Incubators:
MDL has continued its support to Partner
Incubators under Innovations for Defence Excellence (iDEX) towards developing innovation
ecosystem.
The CSR committee certifies that the implementation and monitoring of
the CSR projects being executed are in accordance with the CSR objectives and policy of
the company. The Annual Report on CSR contains the requisite details as specified in the
Companies Act, 2013 and is placed at Appendix E.
- Environment and Pollution Control:
Your Company has engaged various initiatives towards sustainable
development and energy conservation in the year under report. In alignment with the
Government of India's policy to increase the quantum of renewable energy and to
reduce energy consumption various projects were undertaken by your company as follows:
- MDL is committed to reduce the consumption of energy generated by fossil fuel and to
increase the generation of renewable energy to the maximum possible extent. MDL has
already installed 1.85 MWp Roof Top solar power plant.
- Procurement of 40,000 Nos. 110V LED bulbs.
- Procurement of 40 Nos. LED flood lights
Information required under Section 134(3)(m) of the Companies Act 2013,
pertaining to Conservation of Energy, Technology Absorption is given in Appendix
F' to this Report.
- Swachh Bharat Initiatives
Your Company, adhering to the Prime Minister's Swachh Baharat
Abhiyaan, has been able to make positive impact in creating mass awareness movement in and
around MDL and bring about lasting behavior change in the society through participation of
employees at all levels as well as the people from the surrounding area.
- Clean-ship of adjacent areas/Roads of MDL by external agency: MDL has engaged a specific
agency for carrying out daily cleaning of roads (approx. 4.5 km) adjacent to MDL.
- MDL carried out special Swachhta Drive at Sewari Fort.
- Particulars of Employees and Related Disclosures
In accordance with Ministry of Corporate Affairs notification no.
GSR 463(E) dated 05 June 2015, Government Companies are exempt from Section 197 of the
Companies Act, 2013 and rules thereof regarding disclosure of particulars of employees
drawing remuneration in excess of the specified limit.
- Extract of Annual Return
In terms of the Companies Act, 2013 as amended, the Annual Return
is available on http://mazagondock.in/ Annual Return.
- Directors' Responsibility Statement
As required under Section 134(3) (c) and 134(5) of the Companies
Act, 2013 the Directors' Responsibility Statement is given as under, that:-
- In the preparation of the Annual Accounts for financial year ended 31 March 2023, the
applicable Accounting Standards have been followed along with proper explanation relating
to material departures;
- The Directors have selected such Accounting Policies and applied them consistently and
made judgments and estimates that are reasonable and prudent so as to give a true and fair
view of the State of Affairs of the Company at the end of the Financial Year i.e. 31 March
2023 and of the Profit and Loss of the Company for the year ending on 31 March 2023;
- The Directors have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act 2013, as amended
from time to time, for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
- The Directors have prepared the Annual Accounts for the financial year ended on 31 March
2023 on a going concern basis;
- The Directors have laid down Internal Financial Controls to be followed by the Company
and that such Internal Financial Controls are adequate and are operating effectively and
- The Directors have devised proper systems to ensure compliance with the provisions of
all applicable laws and that such systems were adequate and operating effectively.
- Statutory Auditors and their Report
The Comptroller and Auditor General of India under Companies Act
2013, appointed M/s. C.R. Sagdeo & Co, Chartered Accountants Mumbai, as the Statutory
Auditors of the Company for the financial year 2022-
23 as MDL is a CPSE. The Auditors have certified the Accounts and their
Report is placed as a part of Annual Report.
The Notes on the Financial Statements referred to in the Auditors'
Report are self-explanatory and do not call for further comments. During the year under
review, no fraud has been reported by the Auditors under section 143(12) of the Companies
Act, 2013 read with Rule 13 of the Companies (Audit and Auditors) Amendment Rules, 2015.
- Comments of the Comptroller & Auditor General of India
The Comments of the Comptroller and Auditor General of India under
Section 143 of the Companies Act 2013 are placed as a part of Annual Report.
- Cost Auditors
M/s. Dhananjay V Joshi & Company, Mumbai, were appointed as
Cost Auditors for conducting cost Audit of the Company under section 148 of the Companies
Act, 2013 for the year 2022-23 and accordingly such accounts and records are made and
maintained.
- Secretarial Audit
M/sRaginiChokshi&Co.,PracticingCompanySecretaries, Mumbai were
appointed to conduct Secretarial Audit of the Company for the financial year 2022-2023
pursuant to provisions of Section 204 of the Companies Act, 2013 and Regulation 24A of the
SEBI(LODR) Regulations, 2015. The Report of the Secretarial Audit in Form MR-3 is annexed
to the Directors' Report as Appendix 3 and forms part of this report. The Report does
not contain Qualification, Reservation or Adverse remark except that the Company did not
have sufficient numbers of Independent Directors on the Board of the Company as stipulated
under the SEBI (LODR) Regulations, 2015.
In this regard, your Company being a Government Company, under the
Administrative Control of the Ministry of Defence, Department of Defence Production, the
power to appoint Directors (including Independent Directors) and finalizing the terms and
conditions of appointment vest with the Government of India. The matter regarding
appointment of required number of Independent Directors has been taken up with the
administrative Ministry from time to time and the Government is seized of the Matter.
- Adequacy of Internal Financial Controls with Reference to The Financial Statements
- The Company has an Internal Audit Department, which monitors compliances of
Company's procedures, and policies with well-defined annual audit program and
significant audit observations are reported to the Audit Committee of Board of Directors.
The Internal Audit function is headed at the level of Executive Director who is reporting
directly to the Chairman & Managing Director.
- The implementation of SAP/ERP system has helped to strengthen the Internal Control
Systems with its in built checks and balances at various level of operations and it has
set up disaster recovery site at distant locations.
- The system of Internal Control comprises well defined organization structures,
pre-identified authority level and procedure issued by management covering all vital and
important areas of activities which includes Purchase, Stock verification, Inventory
Consumption, Fixed Assets, Cash & Bank Management & Treasury, Payroll, HR, Risk
Management, Statutory Compliance and all other activities involved in financial statement
closing process.
- Internal audit of specific areas of the Company's operations has been outsourced to
Chartered Accountant firm. In addition to outsourced audit activities, other audit
activities are carried out by in-house Internal Audit department. Audit reports given by
Internal Auditors were reviewed by Audit Committee and necessary directives were issued.
The Company had initiated suitable actions on the said directives.
- Management Discussion &Analysis Report
As per Regulations 34(2) (e) of the SEBI (LODR) Regulations, the
Management Discussion and Analysis Report (MDAR) is attached to this Report as Appendix
G'.
- Business Risk Management
Pursuant to regulation 21 of the SEBI(LODR), 2015 the Company has
constituted a Risk Management Committee and its terms of reference, Risk Management Policy
etc. are set out in the Corporate Governance Report.
- Business Responsibility Sustainability Report (BRSR)
The Listing Regulations mandates the inclusion of the BRSR as part
of the Annual Report for the top 1000 listed entities based on Market Capitalization. In
compliance with the Listing Regulations, we have integrated BRSR disclosures into our
Annual Report.
- Future Outlook
Your Company has envisaged following measures of future outlook.
i. Infrastructure
Your Company is exploring the possibility for setting up a green
field shipyard at its Nhava Yard in a phased manner with short term and long term
developments plan. Short term development will enable MDL to facilitate the immediate use
of the existing infrastructure for shipbuilding and ship
repair business whereas long term development will facilitate the
construction of large size vessels and submarines including major refit and repairs.
To undertake the construction of advanced and next generation vessels,
MDL intends to build a New Floating Dry Dock of 12000T capacity.
Your Company is committed towards up-liftment of under privileged
sections of society and towards this a skill development hub is being created with an
Apprentice Training School (ATS) and associated development work at Gavhan village, Navi
Mumbai.
The progress of all the ongoing projects were affected in 2020-21 &
2021-22 on account of the prolonged pandemic situation worldwide. All efforts are being
made to complete ongoing projects as per revised time schedules.
- Submarine Project
- Project 75 (I):
MDL has been shortlisted as one of the Strategic Partners (SP) for
future submarine project P 75(I). RFP from MoD for P75 (I) was issued on 20 July 2021 to
shortlisted strategic partners and revised bid submission date is 01 Aug 2023.
- Additional 03 nos. Scorpene class Submarines:
Preliminary proposal for additional 03 nos. Scorpene class
Submarines with higher Indigenization content has been submitted to IHQ/MoD(N) on 10 Oct
2022. MDL comments on IN's SOC were forwarded on 08 Apr 2023. case is currently under
deliberation at MOD.
- Product Life Cycle Support for Conventional Submarines:
Successful completion of construction of two SSK class submarines,
Modernization & Refit of four SSK class submarines, present construction of six
Scorpene class submarines and Medium Refit cum Life Certification (MRLC) of one SSK class
Submarine, INS Shishumar has forged MDL's position as the only Indian Shipyard with
capabilities to build & provide Life Cycle Support for conventional submarines.
Medium Refit cum Life Certification (MRLC) of INS Shishumar, SSK class
Submarine is currently in advanced stage of refit completion. RFP for second SSK class
Submarine has been issued by IN on 28 Apr 2022 and order placement is expected by Jun
2023. MDL is fully poised to render Life Cycle support for Submarines of Indian and
Foreign Navies.
- Parallel lines for Submarine Construction
MDL has augmented necessary infrastructure for Submarine
construction through a modernisation project. Presently, high level of skill has been
developed in MDL for Submarine construction and at the same time local vendors have been
developed for complex and high quality fabrication jobs. The skilled workforce of MDL and
vendors are ready to take on new challenges in submarine construction. Post infrastructure
augmentation, MDL submarine building capacity has been enhanced substantially to cater for
two dedicated Submarine Assembly Lines fully ready for operations. With these assembly
lines, MDL has a capacity to undertake construction of 11 Submarines at any given time.
- Exports:
- Your Company has a rich legacy of building close to 801 ships since inception, a broad
spectrum of exports carried out in the past comprising of more than 250 vessels, the
impeccable quality of the products delivered that has been internationally acclaimed are
all being leveraged in a concerted manner for exports. MDL's export portfolio covers
a wide gamut of products comprising of new builds for civilian and military end-use,
repairs of commercial vessels and refits of war vessels. Customized service portfolios
wherein MDL can pitch-in as a Know-How Provider for specific needs of developing nations
are also in the offer. The last export order was delivered in 2014 and MDL now intends to
revamp its presence in the Export market. Highly competitive markets, changing technology,
stringent quality criteria, increased expectations of the customer and competitive pricing
of the products from NorthEast Asian countries are some of the challenges that MDL
is working upon.
- Your Company intends to revamp its presence in the export market. MDL has been in
dialogue with various Indian Embassies/High Commissions abroad to expand its product
outreach to prospective customers. MDL is participating aggressively in the global tenders
issued by various countries and is in dialogue with foreign navies to fulfil their
requirements. The commercial shipbuilding sector world-wide is passing through a down turn
and MDL
is deeply aware of the situation. Nevertheless, the defence needs in
the international market continue to rise. MDL has unique strengths and skill sets that
have been painstakingly developed in the past eight decades and are adapted in the complex
activities of weapon integration sensors for high tech defence platforms. This gives a
cutting edge for MDL against their competitors and MDL is all set to cash-in this
scenario. MDL has also appointed Management Representatives for canvasing MDL's rich
legacy in construction of Naval and Non-Naval vessels and promoting MDL's products in
the global market. The Management Representative will also facilitate expansion and growth
of MDL business in near future.
- In addition to constructing vessels, MDL is also ready to provide the services like
design of Warships and Commercial Ships, Transfer of Technology and imparting training in
construction of large Warships, Auxiliary Boats and Ferries, hand-holding to the
Customer's Shipyard for construction and first line repairs of Warships and auxiliary
vessels and Training the technical teams from customer's side in the field of Setting
to Work of systems and Ship trials. Your company has the capability for Refit, Overhaul
and Life extension refits of Ships and Submarines. MDL has provided yard facility to a
luxury yatch from Caymans Island and an Ofshore supply vessel from United Arab Emirates.
MDL intends to tap the global Ship Repairs market for both Naval and Commercial Ships, and
Submarines in future.
- MDL also has facilities & capacity for fabrication of Pressure hull subsections.
Export of Pressure Hull sections to any other country manufacturing
/ procuring Scorpene class Submarines is being explored. Your Company
also intends to undertake infrastructure development and become part of global supply
chain for products. MDL was awarded an order for supply of various types of valves from
M/s. Fortune Engineering & Energy services, Dubai, United Arab Emirates.
- Your company is exploring the possibility of converting the requirements of government
agencies of target countries to projects under LoC. Efforts are on for pursuing exports
with various countries following both the G2G route wherein
the GoI have opened Lines of Credit with funding typically extended by
EXIM bank as well as the B2B route with sovereign guarantee of the recipient nation.
- Your Company's strategic positioning on the west coast of the country provides
proximity to the main sea routes crisscrossing the Arabian Sea and Indian Ocean with
accessibility to Europe and Middle East. Tie-ups with other small shipyards in the country
are in place. MDL has aligned itself with the new thrust on Defence exports.
- Products mentioned under R&D and diversification also have export potential. MDL is
in touch with Indian Embassy's and also with authorised agents for export
opportunities. MDL is also participating in various National & International level
Defence Exhibitions like Defexpo, Aero India etc. to explore export opportunities.
Acknowledgements
Your Directors wish to place on record their gratitude and sincere
appreciation for the assistance, co-operation and guidance received by the Company from
various Ministries of the Government of India especially the Ministry of Defence,
Department of Defence Production, the Indian Navy, Greater Mumbai Municipal Corporation,
Mumbai Port Trust, Principal Controller of Defence Accounts (Navy), the
Departments of Customs, Income Tax and GST.
Your Directors also place on record their appreciation for the
assistance extended by the Company's Bankers Viz. State Bank of India the valuable
advice rendered and co-operation extended by the Statutory Auditors, M/s. Sagdeo & Co
Chartered Accounts, Mumbai, and the officers of the Principal Director of Commercial Audit
and Ex-Officio Member of the Audit Board, Bengaluru. Your Directors express their
gratitude to the clients, who have extended patronage to the Company. Your Directors also
appreciate and acknowledge the devoted efforts put in by the Company's employees at
all levels.
Sincere thanks also to all the Stakeholders for having unwavering
confidence in the Company and willingness to extend all support to the Company.
For and on behalf of the Board
Sanjeev Singhal
Chairman & Managing Director
DIN: 07642358
Place: Mumbai Date: 10 Aug, 2023