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COCHIN SHIPYARDUMITED(A Government of India Category-1 Miniratna Company, Ministry of Shipping)

SEC/48/2017 -63 September 01, 2018

To,The ManagerCompliance DepartmentSSE LimitedPhiroze Jeejeebhoy Tower,Dalal Street,Mumbai- 400001

-rr-o-,--I The Manager'\Compliance DepartmentThe National Stock Exchange of India

I Ltd1 Exchange Plaza,S ndra-Kurla Complex, Sandra (East)

bai- 400051--------------------------

Dear Sir / Madam,

Subject: Annual Report 2017-18

1. Pursuant to. Regulatien 34 of the Securities and Exchange Beard of India (Listing

Obligations and Disclosure Requirements) Regulatiens, 2015, please find enclosed herewitha copy of the Annual Report of the Company (which includes Business Responsibility

Repert)ier the financial year 2017-·18.

2. This is fer your information and records.

Thanking you

EncJ: as above

~~: !Hlmf-iifl ~, 1:ft".,*. ~~. 1653, ~ 1:ft".,*., ~ - 682015RegisteredOffice: Administrative Building,P.OBagNo.1653, Perumanoor P.o.,Kochi - 682 015

1:fiR / Phone:+91 (484) 2361181/2501200 tRCffi/ Fax +91(484) 2370897/2383902~ / Website:www.cochinshipyard.com CIN: U63032KL 1972GOI002414

New Opportunities

COCHIN SHIPYARD LTD

th46 ANNUAL REPORT

2017- 2018

New Horizons

Page No.

Highlights of the Year 1

About us 2

Chairman’s Address 4

Our Credentials 12

Key Performance Indicators 14

Financial Highlights 16

Our People 18

Board of Directors 20

Corporate Social Responsibility 23

Corporate Information 24

Directors’ Report 25

Comments of C & AG 65

Management Discussion and Analysis 83

Business Responsibility Report 90

Report on Corporate Governance 98

Independent Auditors Report (Standalone) 118

Standalone Financial Statements 126

Independent Auditors Report (Consolidated) 183

Consolidated Financial Statements 188

Disclaimer

Statements in this report that describe the Company’s objectives, projections, estimates, expectations or predictions of the future may be ‘forward-looking statements’ within the meaning of the applicable securities laws and regulations. The Company cautions that such statements involve risks and uncertainty and that actual results could differ materially from those expressed or implied. Important factors that could cause differences include raw materials’ cost or availability, cyclical demand and pricing in the Company’s principal markets, changes in government regulations, economic developments within the countries in which the Company conducts business, and other factors relating to the Company’s operations, such as litigation, labour negotiations and fiscal regimes.

TABLE OF CONTENTS

HIGHLIGHTS OFTHE YEAR

TURNOVER

Crore2355`

PROFIT AFTER TAX

Crore396.75`

SHIPBUILDING TURNOVER

Crore1731.86`

SHIP REPAIR TURNOVER

Crore623.27`

• Cochin Shipyard Limited was LISTED on BSE and NSE on August 11, 2017.

• Achieved an all time RECORD TURNOVER of Rs.2355 crores.

• Achieved an all time RECORD SHIP REPAIR TURNOVER of Rs.623.27 crores.

• Achieved an all time RECORD PROFIT after tax of Rs.396.75 crores.

• SIGNED MOU with Central Institute of Fisheries Technology on August 30, 2017 for building fishing vessels.

• INCORPORATED Joint Venture Company viz., Hooghly Cochin Shipyard Ltd in partnership with Hooghly Dock and Port Engineers Limited on October 23, 2017.

• FOUNDATION STONE for International Ship Repair Facility (ISRF) project was laid on November 17, 2017 by Shri Nitin Gadkari ji, Hon’ble Union Minister for Shipping, Road Transport & Highways, Water Resources, River Development and Ganga Rejuvenation.

• SIGNED MOU with the Mumbai Port Trust on January 11, 2018 for operations and management of ship repair facility at Indira Dock. CSL shall utilize the facilities for the purpose of ship repair and allied services and for further expansion in the field of ship repair.

• SIGNED MOI with Defence Research and Development Organisation (DRDO) on January 18, 2018 for export of Defence vessels incorporating Defence systems developed by DRDO and produced by Indian OEMs.

• SIGNED CONTRACT on January 29, 2018 for construction of 16 nos Tuna Long Lining & Gillnetting Fishing Vessels under the diversification of trawl fishing boats from palk bay into deep sea fishing boats under Central sector on Blue Revolution Scheme with financial assistance from Government of India and the Government of Tamil Nadu.

• SIGNED MOU with Joint Stock Company United Shipbuilding Corporation (USC), Russia, on February 02, 2018 to collaborate and engage in design, development and execution of high-end ‘state of the art’ vessels for inland and coastal waterways.

• SIGNED MOU with Kolkata Port Trust on March 17, 2018 for operations and management of ship repair facility at Netaji Subhas Dock. CSL shall utilize the facilities for the purpose of ship repair and allied services and for the growth of ship repair in the region.

• EMERGED L1 BIDDER for 16 x ASW SWC project for Indian Navy.

146th Annual Report

2 Cochin Shipyard Ltd

ABOUT USCochin Shipyard Ltd (CSL) was incorporated in the year 1972 as a fully owned Government of India company. After the IPO in 2017 the Government of India holds 75% of equity share capital in the Company. In the last four decades, the company has emerged as a forerunner in the Indian shipbuilding & ship repair industry and also a well-known player on the global shipbuilding front. CSL has exported 45 ships to various commercial clients outside India such as National Petroleum Construction Company (Abu Dhabi), the Clipper Group (Bahamas), Vroon Offshore (Netherlands) and SIGBA AS (Norway).

The company has built and repaired some of the largest ships in India and is presently building the prestigious Indigenous Aircraft Carrier for the Indian Navy. Over the years, CSL has successfully responded to fluctuations in the shipbuilding requirements of the markets and have evolved from building bulk carriers to smaller and more technically sophisticated vessels such as Platform Supply Vessel (PSV) and Anchor Handling Tug Supply Vessel (AHTS). CSL has worked with several leading technology firms in the industry including Rolls Royce Marine (Norway), GTT (France), Vard Group (Norway) etc. This has added to our credibility in the international markets. Our key shipbuilding clients on the domestic front include the Indian Navy, the Indian Coast Guard and the Shipping Corporation of India Limited. CSL has also undertaken repairs of various types of vessels including upgradation of ships of the oil exploration industry as well as periodical maintenance, repairs and life extension of ships. CSL is presently one of the best performing shipyards in India.


346th Annual Report 346th Annual Report

HOW WECREATE VALUE

Emerge as an internationally preferred shipyard to construct world class Merchant and Naval ships, offshore vessels and structures.

Be the market leader in India for ship repairs, including conversions and up-gradation.

To be admired for our achievements, respected for our ethics and trusted for our service excellence by our valued customers.

To build and repair ships and off-shore structures to international standards and provide value added quality engineering services.

Sustain corporate growth in competitive environment.

To adopt and undertake practices towards becoming a responsible corporate citizen.

VISION

MISSION

OBJECTIVESTo sustain and enhance shipbuilding and shiprepair activities through technology up-gradation and capacity augmentation.

To continuously endeavor to expand/diversify activities of the shipyard including setting up new facilities.

To carry out Research & Development in existing and emerging technologies in shipbuilding processes.

To move towards international benchmarking, benchmark with the best shipbuilding standards followed in India.

To motivate employees through improved specific training programs. To adopt best practices for clean and safe environment. Ride the down time with aggressive bidding and secure orders to maximize capacity.

To ensure positive customer oriented initiatives.

To build a responsible corporate citizen image through CSR & Sustainability projects and compliance to Corporate Governance principles.


CHAIRMAN’S ADDRESS

It gives me immense pleasure to welcome you all, on behalf of the Board of Directors, to the 46th Annual General Meeting of your company Cochin Shipyard Limited (CSL). I have had the privilege of leading this prestigious organization as the Chairman & Managing Director over the last two and a half years and it has been an exhilarating journey.I take this opportunity to apprise you on the achievements of your company in the year 17-18, the operating scenario and the initiatives for the future.

OPERATING SCENARIO The Government of India has unveiled a host of initiatives aimed to develop and sustain growth of the shipbuilding and ship repair sector. The Government of India’s focus on development of Inland and coastal waterways infrastructure is an opportunity to be explored. The positive signs of progress in the sector will open up opportunities which could be converted into Company’s business. In the defence sector also, the industry outlook remained positive. However,

2017 was another difficult year for the global shipbuilding industry, with contracting remaining well below trend. However certain segments have seen ordering in the recent months. At this stage the Company will be focussing on domestic orders in shipbuilding continuously keeping a watch on appropriate projects in the international market.

The Ship repair market in India is promising and CSL with its long experience, competitive advantages and strong ecosystem of sub-vendors, service providers etc remains the dominant shiprepairer in India by a large margin. The Government of India is also keen to significantly increase ship repair activities in the country and has advised major ports to try and team up with CSL to develop ship repair capabilities in ports. We are leveraging this opportunity and are in advanced stages of discussions which could lead to CSL setting up ship repair operations in Mumbai, Kolkata and Port Blair shortly.There is a growing optimism and I would

The Ship repair market in India is promising and CSL with its long experience, competitive advantages and strong ecosystem of sub-vendors, service providers etc remains the dominant shiprepairer in India by a large margin.

Madhu S NairChairman and Managing Director

546th Annual Report

like to thank Government of India for all the support and initiatives provided for the shipbuilding and repair sector.

ACHIEVEMENTS DURING THE YEARYour company achieved an all time high turnover of Rs.2,355.12 crores and a Profit After Tax of Rs.396.75 crores during the FY 2018. The turnover from Shipbuilding was Rs.1,731.86 crores and that from Shiprepair was Rs.623.27 crores.

The shipbuilding front has been steady, the TDV for DRDO is in advanced stages of outfitting and the 2x 500 PAX vessels for A&N administration is presently in the erection and consolidation phase in the drydock. The 2x 1200 PAX vessels for A&N are closely following and are in the block fabrication stage. Outfitting activities are progressing well on the IAC and testing/ trials phase has been initiated on certain critical

equipment. It is a matter of great pride and satisfaction that we have emerged L1 in the tender for the prestigious ASW corvette project of the Indian Navy and expect contracts to be signed shortly. These contracts will contribute approximately Rs. 5,400 crores to CSL’s turnover in the coming years.

Ship Repair continued to do extremely well and we have posted an alltime high turnover of Rs.623 crores in FY 2017-18. To our list of MOU clients like DCI and LDCL we added A&N Administration and 4 of their vessels were handled in 2017. We have handled about 116 Nos of ships, including 18 Naval vessels. We have been aggressive in our marketing efforts and have bagged the major refit contracts of ONGC’s ‘Sagar Bhushan’ and DRDO’s ‘Sagardhwani’ amidst stiff competition from public and private shipyards. We expect significant order intake in the coming year also.

On November 17, 2017 the foundation stone was laid for the Rs. 970 crores ISRF project

being executed in 42 acres of land leased from Cochin Port Trust. This project marks the first ever expansion outside our 170 acre campus.

Subsequently in May 2018, we have awarded the turnkey contract for civil, electrical and mechanical

works for the new large drydock in CSL which project is being undertaken at an overall estimated

cost of ` 1,799 crores.

2017 will be etched in history of CSL as the year in which we changed character in more ways than one. After a hugely acclaimed IPO, we became a public listed company with a market-cap of above USD 1 billion. Our major expansion projects have secured all relevant clearances and have crossed critical milestones. On November 17, 2017 the foundation stone was laid for the Rs. 970 crores International Ship Repair Facility (ISRF) project being executed in 42 acres of land leased from Cochin Port Trust. This project marks the first ever expansion outside our 170 acre campus. Subsequently in May 2018, we have awarded the turnkey contract for civil, electrical and mechanical works for the new large drydock in CSL which project is being undertaken at an overall estimated cost of Rs. 1,799 crores.

Another significant milestone was the incorporation of Hooghly Cochin Shipyard Limited (HCSL) at Kolkata, as a

Estimated Cost of new Drydock

Commenced ISRF project

Crores1,799`

Crores970`


joint venture between CSL and Hooghly Dock & Port Engineers Limited (HDPEL) and marked the first geographical expansion of the Company. CSL holds 74% and HDPEL 24% stake in the equity of HCSL. HCSL has subsequently entered into Lease and Concession agreement with HDPEL for taking over the old units at Nazirgunge and Salkia on 60 year lease and to operationalize these facilities by putting up modern infrastructure. HCSL targets to develop various types of vessels like Ro-Ro Vessels, River-Sea Cargo Vessels for bulk, liquids, containers, Passenger Vessels, other watercrafts for the inland waterways.

Towards this, the Company has signed a Memorandum of Understanding (MoU) with United Shipbuilding Corporation (USC) which is the largest shipbuilding group in Russia to collaborate and engage in Design, Development and Execution of High-End, State-of-Art vessels for Inland and Coastal Waterways. Going with the Company’s plans of expanding its shiprepair business the Company signed MoUs with Mumbai Port Trust (MbPT) and Kolkata Port Trust (KoPT) for upgradation, operation and management of their Ship repair Facilities by leasing the facilities for 30 years and are in the process of signing binding agreements.

During the year the Company marked its entry into a new segment when we signed contracts for construction of 16 nos Tuna Long Lining & Gillnetting Fishing Vessels. These vessels are being built under Central Sector Blue Revolution Scheme with financial assistance from Government of India and the Government of Tamil Nadu to enable diversification of trawl fishing boats from Palk bay into deep sea fishing boats. CSL expects this novel initiative of partnering Central Institute of Fisheries technology (CIFT) and involving IIT Kharagpur, Indian Register of Shipping (IRS) and reputed OEM’s to create the impetus for further business opportunities for delivering technologically sound vessels in this hitherto unorganized but socially very relevant sector.

The Company also signed Memorandum of Intent (MOI) with Defence Research and Development Organisation (DRDO) for the export of defence vessels incorporating defence systems developed by Defence Research and Development Organisation and produced by Indian OEM’s, at the Defence Industry Development Meet chaired by Defence Minister Smt. Nirmala Sitaraman on January 18, 2018.

FIRE ACCIDENT IN CSLYour Company has laid topmost priority in integrating health, safety and environmental (HSE) aspects into business operations. However, CSL witnessed an unfortunate fire accident on February 13, 2018, onboard MODU Sagar Bhushan, the drillship of ONGC which was docked in the repair drydock. Despite concerted efforts by the Safety and Fire department of the yard,we lost 5 precious lives in the accident and 7 others were injured. This accident happened despite CSL having one of the most robust safety systems in the country, been the recipient of successive safety awards and has been giving high emphasis on employee safety training. This accident has triggered root cause analysis, and we are determined to do a deep introspection of all our systems and safety culture. CSL has subsequently implemented various additional measures, having closer vigil on systems and is now planning a major enterprise wide exercise involving reputed external agencies to significantly upgrade the culture of safety in the company.

We have reached out benevolently to the families of the deceased by providing Rs. 10 lakhs to each family over and above all the statutory dues, have offered employment to one immediate member in the family and have offered to

746th Annual Report

take care of all educational and allied expenditure of children till the graduation stage. For the injured, their salaries are being paid by the company and all medical expenditure is being taken care of.

It is a matter of great satisfaction that during these testing times the entire CSL family stood as one and received great support from the Central and State governments and from all walks of the society.

MAJOR EXPANSION PLANSIt gives me immense pleasure to inform that CSL is embarking on major expansion plans. The two major expansion plans of the company include the International Ship Repair Facility (ISRF) at the Cochin Port Trust premises and the new Drydock at the shipyard’s existing premises. These new facilities will expand the Company’s existing capabilities significantly. The new drydock will enable the yard to build and repair a broader variety of vessels including new generation aircraft carriers and oil rigs. The new International Shiprepair Facility will allow the Company to undertake repair of a broader range of smaller vessels and significantly increase shiprepair capacities. The progress on these expansion projects have been satisfactory.

INTERNATIONAL SHIP REPAIR FACILITY (ISRF)On November 17, 2017 Shri Nitin Gadkari, the Hon’ble Minister of Shipping, Road Transport & Highways and Water Resources, River Development and Ganga Rejuvenation laid the foundation stone for the ISRF after Cochin Port Trust (CoPT) allotted the second phase land area (8.134 ha) to the Company. The project is targeted to be commissioned by November 2019 at an estimated investment of Rs.970 Crores.

DRY DOCKThe new Dry Dock being set up by CSL at an estimate of Rs. 1,799 Crores,is expected to augment the Company’s shipbuilding/ ship repair capacity essentially required to tap the market potential of building and repairing specialized and technologically advanced large vessels such as LNG vessels, larger aircraft carriers, drill ships, and dry-dock repairs of semi-submersibles, jack-up rigs, etc. Subsequent to the receipt of all statutory clearances for the Dry Dock Project, the construction contract for the Plant & Machinery has been awarded in May 2018. Procurement process for the 600 T Gantry crane is at an advanced stage.The facility is targeted to be commissioned by June 2021.

The new drydock will enable the yard to build and repair

a broader variety of vessels including

new generation aircraft carriers and

oil rigs. The new ISRF facility will

allow the Company to undertake repair of a broader range of smaller vessels

and significantly increase shiprepair

capacities.


NEW INITIATIVESGeographical expansion is the key area in focus for CSL during the year 2018-19. By teaming up with the major ports on the eastern and western coasts of India, CSL will be able to leverage its competitive advantage in Ship building and Ship Repair to achieve new heights in the industry by exploiting the wider opportunities in Inland and Coastal Shipping. CSL has already inked MoUs with Mumbai Port Trust and Kolkata Port Trust and is confident to commence its Ship Repair Operations during this year. Subsidiary HCSL will cater to the upcoming demand for the Small and medium sized vessels for Coastal segments and Inland waterway segments specifically at NW-1, NW-2 and NW-5, which are now on the key focus of Government of India.

CSL has already received clearance for 10 Nos. Ro-Ro vessels for Inland Waterways Authority of India (IWAI) which will showcase capabilities in the emerging Inland vessel segment. CSL is keeping a close watch on new and green technologies like Electric Propulsion, Fuel Cells, LNG and Methanol fuelled engines etc in the shipping sector in India. As a first step towards its adaptation to the changing needs for alternate clean fuels, CSL is actively developing Methanol fuelled vessels for Inland Water Authority of India (IWAI) and the

first vessel is expected to be in waters by 2019.

Imbibing the digital technology trends in Shipping Industry, CSL is teaming up with M/s. ABB by integrating centralized electrical and automation systems in the 1200 pax vessels being built for A&N Administration, that allows predictability in operations and focusses primarily on safety and reliability of the onboard systems. These systems also enable remote trouble shooting. These ships complying with the International Maritime Organization’s Safe Return to Port (SRtP) requirements for passenger ships will be a key differentiator and will be the First-of-its kind in this part of the world.

CSL has kept its doors open for the Innovation, Technology Inception, Automation and Modernisation in the yard, its operations and its processes; and is looking forward to take steps towards achieving a significant transformation to adapt itself to ever changing technology trends in the market.

CORPORATE GOVERNANCEThe Company continued to comply with good corporate governance practices as stipulated by the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and guidelines of the Department of Public Enterprises (DPE). The total strength of the

Board of Directors as on July 18, 2018 is twelve out of which six are Independent Directors. The Company has constituted an Audit Committee consisting of three Independent Directors. A Nomination and Remuneration Committee, CSR Committee and Stakeholder Relationship Committee chaired by an Independent Director have been constituted. Shri Pravir Krishna IAS, demitted office of director on relinquishing his charge as the Joint Secretary, Shipping. Shri Satinder Pal Singh IPS, the present Joint Secretary, Shipping was appointed on the board on October 04 2017. Shri Bejoy Bhasker took over charge as Director (Technical) on April 05, 2018 in place of Shri Sunny Thomas who superannuated on November 30, 2017. Shri Jyothilal K R, IAS, Principal Secretary (Transport) Government of Kerala, was appointed on the Board on April 20, 2018.

HUMAN RESOURCE DEVELOPMENTThe success of your company is attributable to its employees and to keep its employees motivated and well trained various programmes have been devised. On the HR front, we have institutionalized syllabus based structured training programme for our officers and workmen. Our officers are being exposed to the best practices in other industries and are undergoing courses in prestigious management

946th Annual Report

institutes like IIMK, IIMA, IIMC etc. Under the comprehensive training programme titled “Young Officers Competency Development Programme” a total of 47 sessions were held over five modules and the first batch consisting of 24 executives have since completed the training. A second batch comprising of 25 Executives have also commenced training.

Various ‘People first’ initiatives like Shipyard Pariwar Prathibha Puraskar, Nethruthwa Samvriddhi Yojna, Shipyard Santwana Yojna, Mentor Mentee scheme have been well received by the CSL family and will continue on strong footing. ‘Prajyoti’ and ‘Atmajyoti’ talk series will continue to lead us in our quest for knowledge.

INDUSTRIAL RELATIONSThe industrial relation scenario has been peaceful in the Company. The recognized trade unions have resorted to various means of protests to highlight their concerns over the recently concluded Initial Public Offer (IPO). All such protests have been within the framework of legitimate and democratic trade union activities and have been peaceful.

RESEARCH AND DEVELOPMENT (R & D)R&D policy of CSL is to enhance the company’s pre-eminence in Shipbuilding, Ship repair and other chosen fields and products through Research and

Development. In-house R&D activities have been undertaken during the year 2017-18 mainly in the areas of welding procedure development and qualification of welders.

CSL is now exploring the schemes to encourage innovation-culture among the employees of the yard and is targeting to drive a change management in the organisation so as to ensure a hand-in-hand approach with technology changes.

SKILL DEVELOPMENTThe Company takes up various skill development initiatives within and outside the Company. CSL is a member of Strategic manufacturing sector skill council which has been set up to take forward the Skill India Mission. An exclusive skill development programme for Pipe Fitters under the Strategic Manufacturing Sector Skill Council (SMSSC) Scheme had been conducted and 18 participants mostly workmen drawn from the sub contract pool of workmen in CSL and trainees attended the programme.

INTEGRATED MANAGEMENT SYSTEMThe Shipyard continues to be compliant with the Integrated Management System (IMS) consisting of ISO 9001 Quality Management System, ISO 14001 Environment Standards and OHSAS 18001 Occupational Health and Safety Standards.

Geographical expansion is the

key area in focus for CSL during the year

2018-19. By teaming up with the major

ports on the eastern and western coasts

of India, CSL will be able to leverage

its competitive advantage in Ship building and Ship Repair to achieve

new heights in the industry by

exploiting the wider opportunities in

Inland and Coastal Shipping.

Madhu S NairChairman and Managing Director

Cochin Shipyard Ltd10

CSL will be upgrading its Quality Management system and Environmental management systems to the latest ISO 9001:2015 and ISO 14001:2015 standards respectively by September 2018.

CORPORATE SOCIAL RESPONSIBILITYYour Company continues to fulfil its obligation towards society through its CSR initiatives. The Company has identified and implemented socially impactful projects in a time bound manner. The total amount spent on CSR projects during the year 2017-18 was Rs 8.57 crore as against the mandated amount of Rs 8.54 crore as per the provisions of the Companies Act, 2013.

INITIAL PUBLIC OFFERThe Initial Public Offer (IPO) referred earlier comprise of 3,39,84,000 equity shares of Rs 10 each consisting of (a) 1,13,28,000 equity shares by way of offer for sale by GOI and (b) 2,26,56,000 equity shares by fresh issue, was opened on August 01, 2017 and remained opened till August 03, 2017. The Company filed the prospectus with the Registrar of Companies, Kerala on August 04, 2017. The issue price was fixed at Rs. 432 per share. However, the Retail Individual Investors and the Employees of CSL were given a discount of 5% (approx.) and the shares were offered to them at Rs. 411 per share. The


1146th Annual Report

Company listed its equity shares at BSE Ltd. and NSE of India Ltd. on August 11, 2017. The issue was subscribed 76.18 times and a whopping Rs. 1,442.93 crore was raised. With more than 20 lakh applications, CSL’s IPO was celebrated by the capital markets and was recorded as one of the most successful IPOs in recent history. I believe it is the strength and reputation of the company that generated investor interest in us.

ACCOLADESThe excellent performance of your company has won appreciation from various quarters. The Company is all set to maintain its “high level” rating against the MOU targets set by the Department of Public Enterprises, Government of India for the year 2017-18. However, the final rating from the Department of Public Enterprises is awaited.

Cochin Shipyard has received the Kerala State Energy Conservation Award 2017 in the category of ‘Large Scale Energy Consumers’ and Kerala State Renewable Energy Award 2017 from the Government of Kerala. The Company has won the MKK Nair Memorial Award for the Second Best Productivity Performance from Kerala State Productivity Council. The Company has also received the KMA excellence award for best CSR activities undertaken, India Seatrade Award 2017 for

the Shipbuilding & Repair Yard of the Year, Bureaucracy Today CSR excellence award for Rural Development, from Bureaucracy Today, Top exporter (PSU) at Kochi award from customs for the calendar year 2017, Corporate citizen award by Public Relations council of India for the year 2018 and Award for Best Stall in the IND EXPO 2017 from the Ministry of MSME.

CONCLUSIONCSL is presently in an extremely challenging and competitive business environment. It is very important that we develop, maintain and strengthen our core competencies. CSL has always been able to portray its competitive advantage & capabilities for bagging contracts amidst stiff competition. The vast opportunities posed by the Inland waterways segment and the huge expansion plans of CSL would help the Company to reach greater heights. Along with its qualities of hardwork, dedication and commitment, CSL has to maintain its competitive edge by continually developing and adapting itself with the fluctuating market needs and technology advancements. The changes that we have to bring into our system are to be advance, modern, economically viable and sustainable. I strongly believe that this yard will strive towards achieving the commanding heights in Ship building and Ship Repair Industy, and I believe that

each and every employee of CSL with their indomitable spirit would be the pillars of growth for the Company and will work towards this common goal of the organisation; and of the country.

I convey my thanks to all the Board Members for their valuable contribution in propelling this great organization.

I thank the Ministry of Shipping, other offices of Government of India, the Government of Kerala and West Bengal for their support.

Finally I would like to take this opportunity to thank all shareholders for the trust and support and solicit continued support to fulfill your expectations.

Thanking You

Jai Hind

Madhu S NairChairman and Managing DirectorDIN: 07376798


OURCREDENTIALS


SHIP REPAIR

OFFSHORE

QUALITY

SHIP BUILDINGHas built various types of vessels including Oil Tankers, Bulk Carriers, Tugs, Dredger, Platform Supply Vessels, Passenger Vessels, Anchor Handling Tug Supply vessels etc. Reputed international clientele. Currently building Aircraft Carrier, Technology Demonstration Vessel and Passenger Vessels.

Only yard in India which has undertaken drydock repairs of Aircraft Carriers INS Viraat and INS Vikramaditya. Can undertake complex and sophisticated repairs to all types of vessels including Oil Rigs, Naval and Coast Guard Vessels, Offshore Vessels, Dredgers, Fishing Vessels, Passenger Ships, Port Crafts, and all other Merchant Vessels.

CSL conforms to the Integrated Management System comprising of ISO 9001:2008 – Quality Management System, ISO 14001:2004 - Environmental Management System and OHSAS 18001:2007 – Occupational Health and Safety Management System. Has a NABL accredited laboratory for destructive and non destructive testing.

CSL will be upgrading its Quality Management system and Environmental management systems to the latest ISO 9001:2015 and ISO 14001:2015 respectively by September 2018.

Has undertaken a variety of complex and sophisticated offshore Upgradation contracts.


Bahamas

IndiaJeddah

Cyprus

Germany

USA

Netherlands

Norway

AbuDhabi

COCHINSHIPYARD LTD

Vessels built and delivered by Cochin Shipyard Limited (Total as on March 31, 2018)

Large Vessels

Offshore Support Vessels

Small & Medium Vessels

DefenceVessels

1535

5220

AROUND THE WORLD

PROJECT TIMELINE


CSL Business Strategy Key recent developments Achieved / Expected Key Performance Indicators Goals for FY19 and beyond Expand 0perational capabilities

CSL is in the process of expanding the existing capacity in shipbuilding and shiprepair by adding a new Dry Dock at CSL premises and an International Ship Repair Facility (ISRF) at Cochin Port Trust land taken on 30 years lease. The total capex for putting up the above two facilities is Rs 2768 crore. Out of this Rs 941 crores will be financed from the IPO proceeds. The remaining cost is to be financed through internal accrual of the company and debt.

Signed MOU with Mumbai Port Trust for setting up of shiprepair facilities in their Indira Dock.

Signed MOU with Kolkata Port Trust for setting up of shiprepair facilities at their Netaji Subhas Dock.

Our proposed Dry Dock and ISRF will increase our ability to build, repair and service a broader range of vessels including vessels of larger capacities. The new Dry Dock measuring 310 x 75/60 x 13 m with 2 x 600T Gantry crane will be capable of handling vessels upto Suezmax, Aircraft Carriers of 75000T displacement, Jack-up rigs, LNG vessels etc.

The ISRF- 6000T shiplift for ships upto 130 x 25 m with six transfer work stations and allied facilities. Total outfitting berth of 1500 meters approx.

ISRF :-Piling and construction work commenced and to be in full swing.

DRYDOCK: Construction contract awarded and works to commence in full swing to meet targeted completion.

The Drydock project is expected to be completed by FY 2021 and the ISRF project by FY 2020.

Explore emerging opportunities in national & International joint ventures / technology tie-ups.

Formed a JV company with Hooghly Dock and Port Engineers Ltd. for operationalizing their facilities at Salkia and Nazirgunge for construction and repair of vessels for inland and coastal waterways.

Signed a MOU with United Shipbuilding Corporation (USC), Russia to collaborate and engage in design, development and execution of high-end, state-of-art vessels for inland and coastal waterways.

Signed Memorandum of Intent (MoI) with DRDO for partnership for the export of defence vessels with defence systems developed by the DRDO and its industrial partners.

Tap the opportunities in inland waterways segment.

MOU with DRDO will help in tapping export opportunities in defence shipbuilding

In FY 19 the DPR for the Joint Venture facility will be finalised and the contract for construction will be awarded.

As per the feasibility study conducted by M/s KITCO the project completion will take 18 months from the award of contract and receipt of all approvals.

To carry out Research & Development, innovation, technological upgradations.

Welding of lower thickness plates using one side welding process is a specialised method. Capability building in above area is of paramount importance to yard. Weld procedure development (WPS) has been undertaken in house for welding of lower thickness plate of high strength steel (AH 36) of 10 mm thickness using one side welding process employing twin wire with copper backing.

The procedure has been validated by ABS Classification society and welder has been qualified for performing the welding process.

Development of new products or products with new features.

Development of Submerged Arc Welding (SAW) process with ceramic backing for one side welding for productivity improvement in panel welding.

To be the supplier of choice through quality, on time product delivery and competitive bidding / cost efficient processes.

Emerged as the lowest bidder for a project of Indian Navy worth Rs.5400 Cr comprising of eight vessels.

Completed repairs of Naval refits of INS Shakti, INS Airavat, INS Cheriyam and INS Cora Divh. Also completed repairs of various transhipment vessels.

On repair front won the Sagar Bhushan from ONGC and Sagardhwani of DRDO.

Orders value in hand in shipbuilding and ship repair as on March 31, 2018 is estimated at Rs.13,000 crore (approx.) factoring balance on IAC (Cost plus) and Phase III.

Projects at contract stage amounting to Rs.5800 crores approx.

To build a responsible corporate citizen image through CSR & Sustainability projects and compliance to Corporate Governance principle.

Focus areas of CSL CSR continued to be health, education, capacity building, environmental protection, sanitation and drinking water for the economically poor and weaker sections of the society including the differently abled ones, senior citizens etc. The total outlay achieved for CSR and Sustainable causes was Rs. 857.08 lakhs.

(a) Received Corporate Citizen of the year 2018 Award for outstanding contribution to the profession, industry and society, given by Public Relations Council of India.

(b) KMA excellence award for best CSR activities undertaken.

(c) Bureaucracy Today CSR excellence award for ‘Rural Development’, given by Bureaucracy Today.

(d) Madhu S Nair, CMD, Cochin Shipyard Limited, was honoured with the ‘CSR-Oriented Chairman/CMD/MD of The Year (PSU)’ Award, given by Bureaucracy Today.

To follow the path of shared inclusive growth, distributing the fruits of its prosperity towards improved quality of life of the society and contributing to environment and nature for sustainable development.

KEY PERFORMANCEINDICATORS



CSL Business Strategy Key recent developments Achieved / Expected Key Performance Indicators Goals for FY19 and beyond Expand 0perational capabilities

CSL is in the process of expanding the existing capacity in shipbuilding and shiprepair by adding a new Dry Dock at CSL premises and an International Ship Repair Facility (ISRF) at Cochin Port Trust land taken on 30 years lease. The total capex for putting up the above two facilities is Rs 2768 crore. Out of this Rs 941 crores will be financed from the IPO proceeds. The remaining cost is to be financed through internal accrual of the company and debt.

Signed MOU with Mumbai Port Trust for setting up of shiprepair facilities in their Indira Dock.

Signed MOU with Kolkata Port Trust for setting up of shiprepair facilities at their Netaji Subhas Dock.

Our proposed Dry Dock and ISRF will increase our ability to build, repair and service a broader range of vessels including vessels of larger capacities. The new Dry Dock measuring 310 x 75/60 x 13 m with 2 x 600T Gantry crane will be capable of handling vessels upto Suezmax, Aircraft Carriers of 75000T displacement, Jack-up rigs, LNG vessels etc.

The ISRF- 6000T shiplift for ships upto 130 x 25 m with six transfer work stations and allied facilities. Total outfitting berth of 1500 meters approx.

ISRF :-Piling and construction work commenced and to be in full swing.

DRYDOCK: Construction contract awarded and works to commence in full swing to meet targeted completion.

The Drydock project is expected to be completed by FY 2021 and the ISRF project by FY 2020.

Explore emerging opportunities in national & International joint ventures / technology tie-ups.

Formed a JV company with Hooghly Dock and Port Engineers Ltd. for operationalizing their facilities at Salkia and Nazirgunge for construction and repair of vessels for inland and coastal waterways.

Signed a MOU with United Shipbuilding Corporation (USC), Russia to collaborate and engage in design, development and execution of high-end, state-of-art vessels for inland and coastal waterways.

Signed Memorandum of Intent (MoI) with DRDO for partnership for the export of defence vessels with defence systems developed by the DRDO and its industrial partners.

Tap the opportunities in inland waterways segment.

MOU with DRDO will help in tapping export opportunities in defence shipbuilding

In FY 19 the DPR for the Joint Venture facility will be finalised and the contract for construction will be awarded.

As per the feasibility study conducted by M/s KITCO the project completion will take 18 months from the award of contract and receipt of all approvals.

To carry out Research & Development, innovation, technological upgradations.

Welding of lower thickness plates using one side welding process is a specialised method. Capability building in above area is of paramount importance to yard. Weld procedure development (WPS) has been undertaken in house for welding of lower thickness plate of high strength steel (AH 36) of 10 mm thickness using one side welding process employing twin wire with copper backing.

The procedure has been validated by ABS Classification society and welder has been qualified for performing the welding process.

Development of new products or products with new features.

Development of Submerged Arc Welding (SAW) process with ceramic backing for one side welding for productivity improvement in panel welding.

To be the supplier of choice through quality, on time product delivery and competitive bidding / cost efficient processes.

Emerged as the lowest bidder for a project of Indian Navy worth Rs.5400 Cr comprising of eight vessels.

Completed repairs of Naval refits of INS Shakti, INS Airavat, INS Cheriyam and INS Cora Divh. Also completed repairs of various transhipment vessels.

On repair front won the Sagar Bhushan from ONGC and Sagardhwani of DRDO.

Orders value in hand in shipbuilding and ship repair as on March 31, 2018 is estimated at Rs.13,000 crore (approx.) factoring balance on IAC (Cost plus) and Phase III.

Projects at contract stage amounting to Rs.5800 crores approx.

To build a responsible corporate citizen image through CSR & Sustainability projects and compliance to Corporate Governance principle.

Focus areas of CSL CSR continued to be health, education, capacity building, environmental protection, sanitation and drinking water for the economically poor and weaker sections of the society including the differently abled ones, senior citizens etc. The total outlay achieved for CSR and Sustainable causes was Rs. 857.08 lakhs.

(a) Received Corporate Citizen of the year 2018 Award for outstanding contribution to the profession, industry and society, given by Public Relations Council of India.

(b) KMA excellence award for best CSR activities undertaken.

(c) Bureaucracy Today CSR excellence award for ‘Rural Development’, given by Bureaucracy Today.

(d) Madhu S Nair, CMD, Cochin Shipyard Limited, was honoured with the ‘CSR-Oriented Chairman/CMD/MD of The Year (PSU)’ Award, given by Bureaucracy Today.

To follow the path of shared inclusive growth, distributing the fruits of its prosperity towards improved quality of life of the society and contributing to environment and nature for sustainable development.



(` in crores)

(` in crores)

(` in crores)

(`)

1652.66

194.24

290.96

17.15

1859.51

235.07

367.56

20.75

1993.45

273.79

419.65

24.07

2058.87

321.55

493.40

28.39

2355.12

396.75

604.86

31.03

TURNOVER

PROFIT AFTER TAX

PROFIT BEFORE TAX

EPS

Key Indicators 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09

l EPS (Rs. per share) 31.03 28.39 24.07 20.75 17.15 16.35 15.21 20.09 19.69 14.13

l Face Value Per Share (Rs.) 10 10 10 10 10 10 10 10 10 10

l EBDIT/ Gross Turnover (%) 27.76 26.35 23.52 22.81 20.37 20.45 20.21 26.70 29.20 22.00

l Net Profit Margin % 16.85 15.62 13.73 12.64 11.75 11.92 12.27 15.57 17.86 12.74

l Return on Net Worth % 12.19 15.85 15.09 15.06 14.15 15.76 16.40 23.51 32.78 28.26

l Return on Capital Employed % 12.35 15.39 16.15 14.50 13.97 19.08 18.76 27.44 38.57 29.09

FINANCIALHIGHLIGHTS

FY 13-14

FY 13-14

FY 13-14

FY 13-14

FY 14-15

FY 14-15

FY 14-15

FY 14-15

FY 15-16

FY 15-16

FY 15-16

FY 15-16

FY 16-17

FY 16-17

FY 16-17

FY 16-17

FY 17-18

FY 17-18

FY 17-18

FY 17-18


Particulars 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09

l Turnover 2355.12 2058.87 1993.45 1859.51 1652.66 1554.16 1404.85 1461.72 1248.50 1256.21

l Total income 2544.28 2217.50 2107.37 1952.97 1728.64 1642.33 1481.54 1589.17 1326.49 1383.26

l Profit Before Tax (PBT) 604.86 493.40 419.65 367.56 290.96 275.55 252.97 344.23 331.25 247.63

l Depreciation & write offs 37.51 38.51 37.19 38.33 26.43 19.22 18.07 17.06 15.24 9.80

l Profit After Tax (PAT) 396.75 321.55 273.79 235.07 194.24 185.27 172.33 227.53 223.04 160.07

l Equity Share Capital 135.94 113.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28

l Reserves & Surplus 3119.93 1915.30 1701.05 1447.79 1239.25 1062.42 898.41 775.38 490.54 336.70

l Net Worth 3255.87 2028.58 1814.33 1561.07 1352.53 1175.70 1050.83 967.80 680.32 566.49

l Gross Fixed Assets 369.79 357.72 569.53 636.84 602.38 444.35 376.73 362.10 349.68 270.39

l Net Fixed Assets 284.47 302.85 296.44 377.44 383.41 247.30 192.61 190.67 189.75 121.64

l Number of Employees 1781 1829 1671 1786 1751 1656 1900 1818 1907 1962

(` in crores)

(` )

1353

1390

1561

1621

1814

1695

2029

2089

3256

3212

NET WORTH

CAPITAL EMPLOYED

FY 13-14

FY 13-14

FY 14-15

FY 14-15

FY 15-16

FY 15-16

FY 16-17

FY 16-17

FY 17-18

FY 17-18

Lakhs

Lakhs

35749

857

Contribution to national exchequer

CSR Spend FY 18

`

Lakhs

27140Employee benefit Expenses

`

`


OUR PEOPLECSL Approach: Cochin Shipyard recognizes that among all resources it is the Shipyard’s abundant professional, skilled and trained Human Resources who have been propelling the Shipyard towards achievement of targets and helping CSL gain a competitive advantage. The Human Resources (HR) of CSL forms a very critical part of the company’s business strategy. Human Resource (HR) Management System procedures and approach in CSL are designed to maximize employee welfare and performance. The company focuses on effective management and development of human resources, recruitment, training and development, performance appraisal and rewards. HR is also concerned with the organizational change and maintaining a healthy employer employee relationship climate in the organization.

KEY HR PRIORITIES

Effectively plays the role of a strategic team member.

Planning for pragmatic manpower induction, re-skilling, redeployment and retention of human resources.

Develop and position the right mix of personnel.

Create, maintain and nurture a healthy employer-employee relation.

Evolve and implement best industry practices with transparency in approach, competitive reward and incentive systems for excellence in performance.

Focus on continual improvement for skill and knowledge development so as to enhance effectiveness in job.

Provide effective and meaningful social support to the community/ society around.

management development programmes at IIMA, IIMK, IIMC. Executives were also nominated to NIAS-IISC.

• Industrial orientating training programme- is an initiative wherein a group of executives and executive trainees are deputed to visit other Shipyards/Public Sector Undertakings of different industrial nature. The objective of the programme is to help the executives to gain a comprehensive knowledge of various kinds of work environment outside CSL.

• Mentoring Scheme - to encourage the mentor to be a friend, philosopher and a guide to the new entrants’ especially executives/executive trainees of CSL. The scheme will help the mentee to get focused attention from a senior executive for support and guidance in the organization, building competencies among the new entrants and ensuring their smooth induction. It also helps to increase sense of commitment and belongingness in the newcomers and increase employee retention.

KNOWLEDGE MANAGEMENT

• CSL has developed Knowledge Management platform on Mobile called “StarBoard”. This platform has provisions for sharing of both explicit knowledge and tacit knowledge.

• Department of Public Enterprises is developing a common Knowledge Management Portal for all Central Public Establishments (CPSEs). CSL is one of the 50 CPSEs shortlisted for Phase-I implementation.

KEY INITIATIVES DURING FY18

Training: During the year, 645 employees across all categories had been nominated for a total of 78 programmes conducted by reputed organisations. Young officers’ competency development training programme continued during the year. A total of 47 sessions were held covering five modules. 24 executives have since completed training under the scheme.

Ongoing Leadership Initiatives :

• An educational scholarship scheme “Shipyard Pariwar Prathibha Puraskar” launched to reward and promote the star performers among the regular employees of CSL.

• Leadership Acceleration Programme (LEAP) A scheme for scholarship for higher studies in IITs called “Nethruthwa Samvriddhi Yojana - Leadership Acceleration Programme (LEAP)” for upgrading Technical and Managerial Competencies of Officers in the core areas like Naval Architecture, Ship Design, Marine Engineering and Business Management.

• “Prajyoti” Leadership Talk Series - to help initiate, trigger and cascade the process of leadership development in the shipyard. The Executives learn from leaders from different walks of life and industries,

• “Atmajyoti”– An inner awakening talk series for all employees of CSL. The objective of the Atma Jyoti series by eminent people is to instill in the mind the splendid light of wisdom ignited by visionary experiences.

• Executives across all levels totalling 127 numbers were nominated to attend specific


HR Vision

Emanating from the goals and objectives enshrined in the corporate mission statement, the strategic Human Resources Vision of the Shipyard is to strive and create a unique institution that integrates creativity, innovation, technology, business and good corporate governance practices for all round improvement in the quality of work life of the yard’s workforce.

HR Mission

To provide a vibrant platform for all those working in the yard to give their best and ensure all round growth both for the individual and organization.

HR Policy

Human Resources Policies are oriented towards providing the right mix of human resources, their empowerment and enrichment so as to meet organizational targets and results.

Target

To plan for, introduce/implement HR Policies based on performance that would ensure growth, recognition, rewards, motivation, competence building, commitment and healthy employer-employee relations.


BOARD OF DIRECTORS

Shri Madhu S Nair assumed charge as the Chairman and Managing Director of the Company on January 1, 2016. He had joined the Company as an executive trainee in June 1988. He holds a Degree of Bachelor of Technology in Naval Architecture and Ship Building from Cochin University of Science and Technology, India and a Degree of Master in Engineering with specialisation in Naval Architecture and Ocean Engineering from Osaka University, Japan. He has completed a training course in Shipbuilding-Production Control at Ishikawajima Harima Heavy Industries Overseas Vocational Training Association organised by the Japan International Cooperation Agency under the International Cooperation Programme of the Government of Japan. Furthermore, he has also attended an intensive Japanese language course at Osaka International Centre. He is a member of the Royal Institution of Naval Architects, London. He has approximately 30 years of work experience with the Company. He is also a CSL Nominee Director in the Board of Hooghly Cochin Shipyard Limited, a Joint Venture Company between Cochin Shipyard Limited and Hooghly Dock & Port Engineers Limited.

Shri Satinder Pal Singh is a Part Time Official (Nominee) Director of the Company representing Ministry of Shipping, Government of India. He was inducted into the Board from October 04, 2017. He holds a Bachelor degree in civil engineering from Regional Engineering College, Srinagar, Post Graduate degree in law from Brunel University, London and Master’s degree in Police Management from Osmania University, Hyderabad. He is an IPS Officer of 1995 batch (Himachal Pradesh cadre) and has served in senior positions in the State Government of Himachal Pradesh, including Superintendent of Police, Special Secretary in the Department of Home and Inspector General of Police. He is currently posted as Joint Secretary, Ministry of Shipping, Government of India and prior to this he has served as Director (Housing) in the Ministry of Housing and Urban Affairs.

Shri D Paul Ranjan is the Director (Finance) and Chief Financial Officer of the Company from May 1, 2014. He is a Chartered Accountant and has completed post qualification course in Information Systems Audit (ISA) from the Institute of Chartered Accountants of India. He had joined the Company as an executive trainee in December 1984. He has approximately 33 years of work experience with the Company wherein his responsibilities included financial management, strategic planning, risk management, forex management, budgeting and cost control. He is also in charge of the Information Systems Department. He is also a CSL Nominee Director in the Board of Hooghly Cochin Shipyard Limited, a Joint Venture Company between Cochin Shipyard Limited and Hooghly Dock & Port Engineers Limited.

Shri Jyothilal K R is a Part Time Official (Nominee) Director of the Company representing Government of Kerala. He was inducted into the Board from April 20, 2018. He holds a degree of bachelor of technology in Chemical Engineering from IIT Chennai.He is an IAS Officer of 1993 batch (Kerala cadre) and served in various departments of the Government of Kerala viz. Land Revenue Management and District Administration, Fisheries / Agriculture & Cooperation, Information Technology, Food, Civil Supplies & Consumer Affairs etc. He is currently posted as Principal Secretary (Transport), Government of Kerala.

Chairman and Managing Director

Part Time Official (Nominee) Director

Director (Finance) and Chief Financial Officer

Part Time Official (Nominee) Director

SHRI MADHU S NAIR

SHRI SATINDER PAL SINGH

SHRI D PAUL RANJAN

SHRI JYOTHILAL K R



Shri Suresh Babu N V is the Director (Operations) of the Company from April 26, 2016. He holds a degree of Bachelor of Engineering (Mechanical) from the University of Kerala. He holds a Diploma in Management from Indira Gandhi National Open University. He has completed one year Group Training Course in Shipbuilding, Repairing and Maintenance conducted by Overseas Shipbuilding Cooperation Centre under International Cooperation Programme of the Government of Japan under Colombo Plan. He has also undergone a practical training course with shipyard in Sekaide, Japan of Kawasaki Heavy Industries Limited. Furthermore, he has completed supplementary course in Japanese language held at Overseas Shipbuilding Cooperation Centre. He joined the Company as an executive trainee in February 1985. He has approximately 33 years of work experience with the Company wherein he has had experience across various areas of the shipyard such as Ship Building, Materials and Ship Repair divisions. He is also a CSL Nominee Director in the Board of Hooghly Cochin Shipyard Limited, a Joint Venture Company between Cochin Shipyard Limited and Hooghly Dock & Port Engineers Limited.

Shri Bejoy Bhasker assumed charge as the Director (Technical) of the Company on April 05, 2018. He holds a Degree of Bachelor of Technology (Mechanical) from the University of Kerala with First Rank and Gold Medal. He also holds a Degree of Master of Technology (Mechanical) from the Indian Institute of Technology, Madras. He completed Advanced Diploma in Management from Indira Gandhi National Open University. He joined the Company on June 29, 1988 as an executive trainee. He was awarded the “Manager of the Year” award in 2014 by Kerala Management Association. He has approximately 30 years of work experience with the Company wherein he was involved in Ship Design, Ship Building, Outfit and Ship Repair divisions of the Company. He is also a CSL Nominee Director in the Board of Hooghly Cochin Shipyard Limited, a Joint Venture Company between Cochin Shipyard Limited and Hooghly Dock & Port Engineers Limited.

Director (Operations) Director (Technical)

SHRI SURESHBABU N V SHRI BEJOY BHASKER

Shri Krishna Das E is a Non-Official Part Time (Independent) Director of the Company from March 21, 2016. He holds a Degree of Bachelor in Commerce from University of Calicut and a Bachelor of Law from Mangalore University. He is an Advocate on the roll of the Bar Council of Kerala since 1996 and practising in the District Courts at Palakkad, Kerala.

Non-Official Part Time (Independent) Director

SHRI KRISHNA DAS E

Smt. Roopa Shekhar Rai is a Non-Official Part Time (Independent) Director of the Company from March 21, 2016. She holds a Degree of Bachelor in Science from Nagpur University and Master of Arts from Rashtrasant Tukadoji Maharaj Nagpur University. She also holds a Diploma in Homoeopathic Medical Science from Homoeopathic and Biochemic Doctor’s Training Institute. She was the Chairperson of the Ladies Wing of Vidarbha Industries Association in the year 1994-95.


SMT. ROOPA SHEKHAR RAI



Shri Pradipta Banerji is a Non-Official Part Time (Independent) Director of the Company from July 15, 2017. He holds a Degree of Bachelor of Technology from Indian Institute of Technology, Delhi. He also holds a Degree of Master of Science and a Doctorate of Philosophy (Ph.D) from University of California, Berkeley, USA. He has done an executive development programme with Kellogs School of Management, Northwestern University, USA. He is currently associated with Indian Institute of Technology, Bombay. He is the former director of Indian Institute of Technology, Roorkee. He has received “Excellence in Teaching” award from Indian Institute of Technology, Bombay.

Shri Nanda Kumaran Puthezhath is a Non-Official Part Time (Independent) Director of the Company from July 15, 2017. He holds Bachelor of Arts and Master of Arts degrees from Calicut University. He is also a Certified Associate of the Indian Institute of Bankers. He has been associated with State Bank of India from 1975 to 2011, post which he was appointed as the Managing Director of State Bank of Travancore from 2011 to 2013. He has, after his retirement from State Bank of India Group in 2013, also held various positions including the President of MobMe Wireless Solutions Limited, the Chief Executive Officer of Alpha Palliative Care and the Managing Director of Atlas Jewellery India Limited.

Non-Official Part Time (Independent) Director Non-Official Part Time

(Independent) Director

SHRI PRADIPTA BANERJI SHRI NANDA KUMARAN PUTHEZHATH

Shri Jiji Thomson is a Non-Official Part Time (Independent) Director of the Company from July 15, 2017. He holds Bachelor of Arts and Master of Arts degrees in Economics from University of Kerala and Degree of Master of Social Science in Public Economic Management from University of Birmingham, UK. He belongs to the 1980 batch of the Indian administrative service (Kerala cadre). In the past, he has been the Chief Secretary of the Government of Kerala from January 2015 to February 2016 and Director General in Sports Authority of India, Ministry of Youth Affairs and Sports from March 2013 to January 2015.


SHRI JIJI THOMSON

Shri Radhakrishna Menon is a Non Official Part Time (Independent) Director of the Company from March 21, 2016. He holds a Degree of Bachelor in Legal, Social Science from Bharati Vidyapeeth’s New Law College, Pune. He is the President of Travancore Travel and Tourism Co-operative Society Limited. In addition to being an entrepreneur and proprietor of Devi Agency and Devi Traders, he is also the Vice-President of the World Malayalee Organisation. He is a Non-Official Member of General Council for National Livestock Mission, Ministry of Agriculture and Farmer Welfare, Government of India.

Non Official Part Time (Independent) Director

SHRI RADHAKRISHNA MENON

BOARD OF DIRECTORS



SOCIALRESPONSIBILITY

CSR VISION

Cochin Shipyard Ltd. in consonance with its Corporate Vision looks forward to continuing in the best tradition of being a responsible Corporate Citizen recognised for the quality of its products and services and respected for its ethical way of conducting business. In this, it endeavours to follow the path of shared inclusive growth, thereby distributing the fruits of its prosperity towards improved quality of life of the society and contributing to environment and Nature for sustainable development.

Major take aways for CSL from CSR initiatives are (i) Building Corporate image (ii) Boosting CSL’s standing in the society which in turn improved the morale of the employees.

Major Projects

Minor Projects

Swachh Bharath

Education

Healthcare

OthersLakhs

31

39

33%

31%

12%

24%857

(Project cost more than Rs10 Lakh )

(Project cost less than Rs10 Lakh )

`

During FY18 the major focus areas of CSL CSR were Swachh Bharat, health, education, skill development, rural development, rehabilitation, environmental conservation, protection/ promotion of national monuments, art culture and heritage.

CSR OVERVIEW AND BUDGET ALLOCATION FY 18


CORPORATE INFORMATION

Board of Directors

Shri Madhu S NairChairman & Managing Director

Shri Paul Ranjan DDirector (Finance) andChief Financial Officer

Shri Sureshbabu N VDirector (Operations)

Shri Bejoy BhaskerDirector (Technical)

Shri Satinder Pal Singh IPSJoint Secretary (Shipping),Ministry of Shipping, Govt. of IndiaPart Time Official (Nominee) Director

Shri Jyothilal K R IASPrincipal Secretary (Transport)Government of KeralaPart Time Official (Nominee) Director

Smt. Roopa Shekhar RaiNon-Official Part Time (Independent) Director

Shri Krishna Das ENon-Official Part Time (Independent) Director

Shri Radhakrishna MenonNon-Official Part Time (Independent) Director

Shri Jiji Thomson IAS (Retd.)Non-Official Part Time (Independent) Director

Shri Pradipta BanerjiNon-Official Part Time (Independent) Director

Shri Nanda Kumaran PuthezhathNon-Official Part Time (Independent) Director

Management Team

Shri Ramesh K JChief General Manager(Human Resource & Training)

Shri Murugaiah MChief General Manager (Tech)

Shri Varghese M DChief General Manager(Industrial Relations & Administration)and Head CSR

Shri Neelakandhan A NGeneral Manager (Materials)

Shri Sreejith K NGeneral Manager (Ship Repair)

Shri Suresh Kumar A VGeneral Manager (Ship Building)

Shri Varadarajan SGeneral Manager & SO (M-SR)

Smt. V KalaGeneral Manager and Company Secretary

Shri Rajesh GopalakrishnanGeneral Manager(Business Development & New Projects)

Shri Harikrishnan SGeneral Manager (LNG, PM & PPC)

Shri Eldho JohnGeneral Manager (Infra Projects)

Shri Subramaniya Pillai RGeneral Manager (Design & Engg)

Shri Jose V JGeneral Manager (Finance)

Shri Sivakumar A General Manager (IAC)

Shri Sunil Kumar K RGeneral Manager (Mat-II)

Registered Office

Cochin Shipyard LimitedAdministrative Building,Cochin Shipyard Premises,Perumanoor, Kochi, Kerala,India – 682 015.

Bankers

State Bank of IndiaSyndicate BankUnion Bank of India

Statutory Auditors

M/s. Krishnamoorthy & KrishnamoorthyChartered Accountants,XXXIX/3217, Paliam Road,Cochin – 682 016.

Secretarial Auditors

SVJS & Associates, Company Secretaries39/3519B, Padmam Apartments,Manikkath RoadRavipuram, Cochin 682 016.

Cost Auditors

Shri K A FelixD31/670, Parvathy Nilayam,Opp. Welcare Hospital, Vytila P.O,Ernakulam – 682 019.

Debenture Trustees

SBICAP Trustee Company Ltd.6th Floor, Apeejay House,3, Dinshaw Wachha Road,Churchgate, Mumbai - 400 020.

Registrar & Transfer Agents

Link Intime India Pvt. Ltd.Surya, 35, Mayflower Avenue,Behind Senthil Nagar,Sowripalayam Road,Coimbatore – 641 028.


Dear Shareholders,

1. Your Directors have pleasure in presenting the 46thAnnualReportofyourCompanyalongwiththeauditedfinancialstatementsfortheyearendedMarch31,2018.

Financial Performance2. The performance of Cochin Shipyard Limited (CSL)

continuedtobegoodduringtheyear2017-18.Inspiteof the continued global down-turn in shipbuildingindustry, the turnover for the year was ` 2355.12crores as compared to ` 2058.87 crores in the year2016-17.TheProfitBeforeTaxwas`604.86croresasagainst`493.40croresinthepreviousyear.Thenetprofitwas`396.75croresascompared to`321.55crores for the previous year. This performance is creditable considering the continuing recessionaryconditionsintheshippingandshipbuildingsector.

3. The authorised share capital of the Company is` 2,50,00,00,000 divided into 25,00,00,000 equityshares of face value of `10each.Thepaidupsharecapital of the Company is ` 1,35,93,60,000 dividedinto13,59,36,000equitysharesoffacevalueof`10each.CSLwent in foran IPO inAugust2017,whichconsistedofpublicissueof3,39,84,000equitysharesof face value of ` 10 each. In consequence of theIPO, the post issue paid up equity share capital ofCSL increased from ` 1,13,28,00,000 (pre-issue) to`1,35,93,60,000(postissue).TheCompanywaslistedinBSE&NSEonAugust11,2017.

Financial Highlights(`inCrs)

Sl No Particulars 2017-18 2016-17(i) GrossIncome 2544.28 2217.50

(ii) Profit before finance cost,depreciation&tax 653.78 542.45

(iii) Finance costs 11.41 10.54(iv) Depreciation&writeoff 37.51 38.51(v) ProfitBeforeTax 604.86 493.40(vi) Provisionfortax(Net) 208.11 171.85(vii) Netprofit 396.75 321.55

Dividend

4. As per Office Memorandum F.No.5/2/2016-Policydated May 27, 2016 issued by Department ofInvestment and Public Asset Management (DIPAM),everyCPSEhave topayaminimumannualdividendof30%ofPATor5%of thenet-worth,whichever is

DIRECTORS’ REPORT

higher. Accordingly, your Directors are pleased torecommend a dividend of ` 12/- per share on the13,59,36,000 fully paid Equity shares of ` 10 each.The totaloutgo fordividendanddividend taxwouldbe approximately ` 196.65 crores. No unclaimeddividend (previousyears’) isdue tobe transferred totheInvestorEducationandProtectionFund(IEPF).

Dividend Distribution Policy

5. AsperRegulation43AoftheSecuritiesandExchangeBoard of India (Listing Obligations and DisclosureRequirements)Regulations,2015thetopfivehundredlisted entities shall formulate a dividend distributionpolicy. Accordingly, dividend distribution policyhas been adopted to set out the parameters andcircumstances thatwillbe taken intoaccountby theBoard in determining the distribution of dividend toits shareholders and/or retaining the profit into thebusiness.ThepolicyisenclosedasAnnexure1tothethis report and is available on the CSL’s website athttps://www.cochinshipyard.com/links/Dividend%20Distribution%20Policy.pdf

194

2013-14 2014-15 2015-16 2016-17 2017-18

235273

322

397

Profit Ater Tax (` Crs)

13531561

18142029

3256

2013-14 2014-15 2015-16 2016-17 2017-18

Increasing Networth (` Crs)


Transfer to Reserves

6. During the year an amount of ` 2.88 Crores wastransferred to Debenture Redemption Reservesin terms of Section 71(13) of the Companies Act,2013. As on March 31, 2018, the Company hasReservesandSurplusamountingto`3119.93croreswhichreflectstheinherentfinancialstrengthoftheCompany.

Contribution to Exchequer

7. The total contributionmade during theyear bywayofValueAddedTax, IncomeTax,CST,CustomsDuty,Service Tax, GST and Dividend Tax was ` 357.49Crores.

Shipbuilding

8. TheCompanyachievedatotalshipbuildingincomeof`1731.86croresduring2017-18asagainst`1515.82croresin2016-17.Duringtheyear2017-18,theyardcompleted the delivery of twoDouble ended Ro-Rovessels for Kochi Municipal Corporation. The yardcompleted various major milestones on the projectswhichareunderconstructionsuchaskeellayingandlaunchingofSH20-TechnologyDemonstrationVessel(SpecialPurposeVessel),steelcuttingandkeel layingofSH21andSH22 -500paxvessels, steelcuttingandkeellayingofSH23andSH24-1200paxvesselsandsteelcuttingfor16nos.fishingvessels.IndigenousAircraftCarrier(IAC)projectprogressedsatisfactorily.Machinery outfittingof engine room and installationof415voltpowergenerationanddistributionsystemwas completed. 3Dmodelling ofmajor ship systemsuptoflightdeckwasalsocompleted.TrialsofDGsets1 and 5 were completed successfully. Critical AFCequipmentwasreceivedattheYard.Phase3contractis expected to be concluded in the current financialyear.

Shiprepair

9. During theyear, theCompanyachieveda total shiprepair income of ` 623.27 crores as compared to` 543.05 crores during the financial year 2016-17.Major vessels repaired during the year include INSShakti, INS Nireekshak, INS Airavat, INS Sujata,INSSutlej,MVSagardweep- II,MVKalighat,MVBharatSeema,WSVSamudraNidhi,DCIDredgeXIXetc.Also, after a long interval,CSLhas started refitofOffshoreDrillingVesselsbyundertakingongoingrefitofMODUSagarBhushanfromONGCduringtheyear.

14101643 1626

1516

1732

2013-14 2014-15 2015-16 2016-17 2017-18

Shipbuilding Income (` Crs)

228

367

543

623

196

2013-14 2014-15 2015-16 2016-17 2017-18

Shiprepair income (` Crs)

Shipbuilding Order Book Position

10. TheorderbookpositionasonMarch31,2018 isasfollows:-

Vessel Type NosIndigenousAircraftCarrierfortheIndianNavy,P-71 01

TechnologyDemonstrationVessel(SpecialPurposeVessel)forDRDO 01

500passengercum150MTcargovesselforA&NAdministration 02

1200passengercum1000MTcargovesselforA&NAdministration 02

TunaLonglinerCumGilnetterFishingBoat 03

Expansion Projects

11. Detailsofmajorprojectsandinitiativestakenupduring2017-18areasfollows:

i) International ShiprepairFacility (ISRF) atCochinPortTrust

CSLcontinuedtooperatethedrydock&existingfacilitiesintheleasedarea(firstphase)atCoPT.


Drydockrepairoftenvesselshavebeencompletedduring the financial year 2017-18. Meanwhile,CoPT had allotted the second phase land area(8.134 ha) to CSL in the month of November2017. Ministry of Environment, Forests &ClimateChangehadissuedEnvironmental&CRZclearancefortheISRFprojectonJune22,2017.CSL had awarded the construction contract forcivil, mechanical & electricalworks onOctober10,2017.HonourableUnionMinisterofShipping,ShriNitinGadkari laid foundation stone for theISRFprojectonNovember17,2017.Sincethen,the construction activities of the project hadcommenced.CSLexpectstopositionKochiasamajorshiprepairhubwithmajoroperationsinthepresentshiprepairdockcoupledwith increasedcapacitiesthatwouldbeavailablewhentheISRFiscommissioned.

ii) NewDryDockProject

ThenewDryDockwill enable theCompany tobuild and repair specialised and technologicallyadvanced large vessels such as LNG vessels,larger aircraft carriers, drill ships and dry-dockrepairsofsemi-submersibles,jack-uprigs,etc.

Subsequent to the receipt of all statutoryclearances for the Dry Dock project, letter ofacceptance was issued for the construction (Civil, Mechanical and Electrical) on April 27,2018. Tendering for the 600 T Gantry crane isalsounderprogress.

iii) Joint Venture with Hooghly Dock and PortEngineersLtd.(HDPEL)

The Ministry of Shipping vide letter No. SY-11018/1/2010- HDPE dated March 29,2017 approved the formation of joint venturepartnershipbetweenCochinShipyard(74%stakein equity) andHDPEL (26% stake in equity) forupgradation and modernization of shipbuildinginfrastructureatthetwoshipyardsitesofSalkiaandNazirgungeinKolkata.OnOctober23,2017ajointventurecompanynamedHooghlyCochinShipyard Ltd. (HCSL) has been incorporated asa subsidiary company of Cochin Shipyard. TheCompany executed shareholders agreement onNovember17,2017,andconcessionagreementand leaseagreementwereexecutedonJanuary19, 2018. The consultancy work for DPR isawarded to M/s. KITCO. HCSL being in theprojectimplementationstagehasreportedanon-operating incomeof` 18.57 lakh and a loss of`37.07lakhduringthefinancialyear2017-18.

A separate statement containing the salientfeaturesofthefinancialstatementofSubsidiaries/

Associates/Joint Venture Companies in FormAOC-1pursuanttoprovisionsofSection129(3)of theAct, is attached alongwith the financialstatements.

iv) NewInitiatives CSLhasenteredintoanMOUwiththeMumbai

PortTrustonJanuary11,2018foroperationsandmanagementofshiprepairfacilityatIndiraDock.CSLshallutilize the facilities for thepurposeofship repair and allied services and for furtherexpansioninthefieldofshiprepair.SimilarMOUhasbeensignedwithKolkataPortTrustonMarch17,2018foroperationsandmanagementofshiprepair facility at Netaji Subhas Dock. CSL shallutilizethefacilitiesforthepurposeofshiprepairand allied services and for the growth of shiprepairintheregion.

CSL signed an MOU with Central Institute ofFisheries Technology on August 30, 2017 forbuilding fishing vessels. The Company alsosigned an MOU with Joint Stock CompanyUnited Shipbuilding Corporation (USC), Russia,onFebruary02,2018tocollaborateandengagein design, development and execution of high-end ‘state of the art’ vessels for inland andcoastalwaterways.AnotherMOIwassignedonJanuary 18, 2018 with Defence Research andDevelopment Organisation (DRDO) for exportof Defence vessels incorporating Defencesystems developed by DRDO and produced byIndian OEMs. CSL signed contract on January29, 2018 for constructionof16nosTuna LongLining & Gillnetting Fishing Vessels under thediversification of trawl fishing boats from palkbay into deep sea fishing boats under CentralsectoronBlueRevolutionSchemewithfinancialassistance from Government of India and theGovernmentofTamilNadu.

Initial Public Offer

12. CSL’sInitialPublicOfferof3,39,84,000equitysharesof face value of `10eachwasopenedonAugust01,2017 and closed onAugust 03, 2017. CSL listed inBSEandNSEonAugust11,2017.Thecompanyhasraised`1,442croresfromtheIPOwhichhasbeenacombinationoffreshissueandofferforsaleintheratioof2:1.TheIPOwassubscribedbyover75timeswithmorethan1.11lakhcrorebeingraisedagainsttheofferof `1,442crores.TheIssuealsosawastronginterestfrom retail segmentwith about20 lakh applications,thehighest in the last decade.TheQIBportionwassubscribed over 63 times and the HNI portionwassubscribed by 287 times. Overall there were verypositivemarketsentimentstowardstheIPO.


13. TheproceedsofthefreshissuepartoftheIPO,totalingapprox. ` 961 crores will be used by CSL for partfundingtwoexpansionprojectscosting`2768croresviz. a larger dry dock atCSL premises and the ISRF.Balanceamountof`481croreshasbeentransferredtoGovernmentofIndiaforNationbuilding.

Utilisation of IPO Proceeds

14. DetailsofutilizationoffundsfromproceedsofIPOasonMarch31,2018isgivenbelow:

` Crs

ParticularsProceedsfromInitialPublicOffer(IPO) 961.95

Less:AmountestimatedtowardsIPOexpenses(Company’sshare)

20.26

NetIPOproceeds 941.69

Addinterestamountreinvested 13.90

Total proceeds plus interest 955.59Lessutilisationofproceedsfor: GeneralCorporatePurpose(GCP) 99.56

ConstructionofNewDryDock 3.31

ISRF 11.42 114.29Fund balance as on March 31, 2018 841.30

ParkingoffundsinFixedDeposits 841.27

ParkingofFundsinCurrentAccounts 0.03

Parking of funds as on March 31, 2018 841.30

Manpower Status

15. ThemanpowerstrengthofthecompanyasonMarch31,2018was1781consistingof331executives,167supervisorsand1283workmen.

Industrial Relations16. IndustrialRelationscenariooftheCompanyremained

generally cordial during the year. The Companycontinued the legacy of strike free period of last33 years except one day strike on April 28, 2017called by all the trade unions to protest against thedisinvestmentofCochinShipyardLimitedthroughtheInitialPublicOfferofitsequityshares.However,postIPOtheissuehasnotbeenraisedbythetradeunionsandtheIndustrialRelationsclimatehasbeengenerallypeaceful in this respect.

17. All employees continue to render whole heartedsupportandco-operationtothemanagementinitiativesandtargetssetbytheCompany.Thecriticalmilestonein the industrial relations journey of any organisationis chalking out most reasonable and acceptable LongTermSettlement (LTS) for itsemployees.Asfaras theworkmen under the Industrial DisputesAct 1947 areconcerned,theirnextLTSisdueforrevisionwitheffectfromApril01,2017.AllrecognisedtradeunionsoftheCompanyhavesubmittedtheircharterofdemandsforthe new LTS. Company has started negotiating withthe recognised trade unions on the said charters ofdemandsubject tothebroadframeworkofguidelinesissuedbythegovernmentthroughtheDepartmentofPublicEnterprises.AsregardstheBoardlevelandbelowBoard level officers and non-unionised supervisors,presidential orders have been issued for their payrevisioneffectivefromJanuary01,2017andvaliduptoDecember31,2027(thepayrevisionordersinrespectofthesecategoriesofemployeeshavebeenimplemented).

18. Various foraconstitutedtowardspromotingworkers’participation in management, continue to functionwell.Theyarejointcouncils,shopcouncil,centralsafetycommittee, shop level safety committees, contractworkers safety committee, canteen managementcommittee, employees’ contributory provident fundtrust etc.

19. EmployeesandtheirdependentswelfareandwellbeingarewelltakencarethroughvariousvoluntaryschemeslikeEmployeesMedicalAssistanceScheme,EmployeesPension Scheme, Shipyard Pariwar Prathibha PuraskarScheme,EmployeesEducationalAssistanceSchemeetc.

Human Resource Development

Learning and Development activities during 2017-18

20. Thesyllabusbasedcomprehensivetrainingprogrammetitled “Young Officers Competency DevelopmentProgramme” covering young managers upto the levelof Deputy Managers started during the last financialyear continued this year also. During the currentfinancialyearatotalof47sessionswereheldoverfivemodulesandthefirstbatchconsistingof24executives


have since completed the training. A second batchcomprisingof25executiveshavecommencedtraining.The faculty for this programme is primarily drawnfromin-housetalentaswellasretiredexecutives.Theprogramme focuses in detail on all technical matterspertaining toShipBuildingandShipRepair and topicsof relevance in other non technical areas. As part of facilitating knowledge transfer, a structured trainingprogramme forworkmen in the tradesofwelder,pipefitter, structural & engineering fitters and electricalcovering229workmenwas held during theyear.Thedetailedsyllabusfortrainingoftheworkmeninvarioustradeswaspreparedbyapoolofretiredemployeesoftheyard.This structuredprogrammeaims to facilitateskilldevelopmentofthenewemployeesandmakethemcapableofhandling the challenges atwork site.Apartfromthisin-housedevelopmentprogramme,anexclusiveskilldevelopmentprogrammeforpipefittersundertheStrategic Manufacturing Sector Skill Council (SMSSC)Schemehadbeenconductedand18participantsmostlyworkmendrawnfromthesub-contractpoolofworkmeninCSLandtraineeshadattended.

21. Executives at all levels were nominated to attendspecific management development programmesat IIMA, IIMK, IIMC. Executives have also beennominated to NIAS-IISC. As part of a continuouslearning and development five customizedmanagementdevelopmentprogrammeswereheld inassociationwith the Indian InstituteofManagement(IIMK),Kozhikode.CSLhasalsoentered intospecificMOUswith CUSAT and faculty support is extendedbyCSLforNavalArchitecturecourseconducted.Twocomprehensive one week programmes on “GeneralManagement” were conducted at the IIMK maincampuscovering48executivesuptothelevelofAGMs.ThreedayprogrammeswereconductedatIIMKKochicampus covering 75 executives on communicationeffectiveness, contract management and finance fornon financemanagers etc. Further, sixteen in-houseprogrammeswereconductedinCSLonawiderangeof topics ranging from GST updation to vigilancesensitization. The prominent technical programmesconductedin-houseincludejointprogrammebyM/s.NIRDESH,KozhikodeandexpertsfromtheIndianNavy,NPOL and BHEL on “Warship inspection, tests andtrials”, programme on “QC Inspection” conducted byrenownedclassificationsociety,M/s.IndianRegisterofShipping(IRS)and“TechnicalMDPonShipStructures-Strength, Fabrication andDistortionControl byM/s.Asranet, UK and professors from IIT (Kharagpur). A total of eight executives were nominated forspecializedinternationalprogrammesinJapan/Europerangingfromthreetofourweeksforbothtechnicalandmanagement development programmes. The topicsinclude Energy Management, Quality Management,

ProjectManagement,LeadershipandProblemSolvingTechniques. A Technical Management Developmentprogramme on Passenger Ships by LRSwith specialemphasisonSRtP requirementswas conductedwiththeparticipationofrepresentativesfromDGS,DesignconsultantM/sSEDSandCSL.

Encouraging Leadership22. Inordertoencourageandmotivateyoungexecutivesfor

higherlearningaschemecalled“NethruthwaSamvriddhiYojana–LeadershipAccelerationProgramme(LEAP)hasbeenlaunched.Underthisschemethreeexecutiveshavebeengrantedstudyleavefortwoyearstopursuepostgraduation from leading national level institutes (IITs/NITsetc).Thecorebenefitundertheschemeisnotonlyagrantofstudyleavefortwoyears,butreimbursementoftuitionfeesupto`10lakhsininstalmentsaftertheycomebackandjoinforduty.

Educational Scholarships to Wards of Employees23. “ShipyardPariwarPrathibhaPuraskar”,aneducational

scholarship scheme introduced from the year 2016aimstorewardandpromotethestarperformersamongthewardsofregularemployeesofCSL.Ascholarshipof `25,000/-peryearforamaximumperiodof5yearsshallbebestowedintheorderofhighestmarksscoredbythewardsinClassXIIfinalexamination.Duringtheyear2017-18,20eligiblestudentshavebeengrantedscholarshipunderthesaidscheme.

Recognising Excellence24. CSLhasintroducedtheEmployeeExcellenceAwards

Scheme envisaging reward and recognition ofinnovativeideasandpracticesamongtheemployeesbelow the level ofAGMs. The highest award underthe scheme isChairman’s awardwith a citation andcash price of `15,000/-.Therearealso10Chairman’scommendations awardwith a citation and` 2000/-eachascashprice.Theawardsarepresentedtothewinners on the occasion of Independence Day andRepublicDaycelebrationseveryyeartothepermanentemployeeswhilefixed termcontractemployeesandadvancedtraineesarehonouredduringthevaledictoryceremony of “Productivity Month Celebrations”or on “Safety Day” etc. In 2017-18, 47 permanentemployees and16 contract personnel/trainees havebeenhonoredwithChairman’scommendationwhichcarries `2,000/-cashprize.

Encouraging Thought Provoking Ideas25. Thetalkseries ‘Prajyoti’,whereeminentpersonalities

whohaveexcelledintheirprofessionalfieldsharetheirthoughtswiththeexecutivesofCSLcontinued.Duringthe year, two such talk sessions were held. Apartfromtheabove,prominentpersonsalsoaddressedagathering of executives on procurement, procedures


andpolicies.ExpertsfromLloyd’sRegisterofShipping,UKalsoaddressedaselectgatheringofexecutives.

Professional Assessments

26. Duringtheyear,anagencyhasbeenawardedtheworkfor conductingexecutives’AssessmentDevelopmentCentre(ADC)andcreationofIndividualDevelopmentPlans(IDPs)forSuccessionPlanning.Thescopeofworkincludesidentificationandvalidationofleadershipandrolebasedcompetenciesfor17keyrolesofCSLandalso drawing up an IndividualDevelopment Plan fora groupof 70 executives in the grades ofManager/SeniorManager.

Training

27. During the year, the Company has also trained205 ITI tradeapprentices,71engineeringgraduates,71diplomaholdersand03vocationaltraineesunderthe Apprentices Act. Under the Company scheme,specialisedtrainingprimarily inthetechnicalstreamswasextended to600Trainees.TheCompanyduringtheyearhadalsoinducted5executivetraineesforoneyeartraining.TheMarineEngineeringTrainingInstituteapprovedby theDirectorGeneral of Shipping,Govt.of India provided training to130engineering cadetsduring the year to enable them qualify for marineengineeringjobsonboardvessels.

Status on affirmative action to implement Presidential directives on reservations

28. CochinShipyardhasbeenstrictlycomplyingwiththePresidential directives and guidelines on reservationfor Scheduled Caste (SC)/ Scheduled Tribes (ST)/Other Backward Classes (OBC) and Persons withDisabilities (PWD) issued by the Government ofIndia from time to time. Shipyard has appointed aLiaisonOfficerforSC/ST/PWD/Ex-Servicemenanda separate Liaison officer for OBCs to oversee theimplementation of reservation policies. Reservationpercentage is ensured through the maintenanceof Post Based Roster System as prescribed by theGovernment of India. During theyear, trainingwasimparted exclusively for employees belonging tothese categories.Three executives belonging to SC/STcategoryweredeputedfortrainingabroad.Regularmeetings with the associations of the employeesbelonging to these categories were conducted todiscuss and redress their grievances. Pursuant toGovernment orders, special recruitment drive wasresorted during the year for filling up of vacanciesreserved for PersonswithDisabilities and out of 15vacancies notified four candidates were selected.Inorder to supportemployeesbelonging to theSC/ST/OBC/PWD employees who fall under the zoneofconsiderationforpromotion,specialcrashcourses

werearrangedwiththeaidofexpertexternalfacultyonthetopicsofleadership,conversationalEnglishandother soft skills.AsdirectedbyGovt. of India undertheAccessibility India Campaign, accessibility auditfor PWD was carried out by an accredited agencyM/s.EkanshTrust,Pune.Furtherimprovementsinthisregardhavealsobeencarriedout.

Representation of SC/ST employees

29. TherepresentationofSCandSTemployeesinvariousgroupsofpostsasonMarch31,2018isgivenunder:

Category CSL’s Total Strength SC STGroup A 266 41 12GroupB 126 21 8Group C 775 104 15Group D 614 81 10Total 1781 247 45Note:Againstthetotalof383apprentices,97i.e,25%

belongtoSC/STcommunitywhichiswellabovethestatutoryrequirement.

Representation of OBC employees

30. The representation of OBC employees in variousgroupsofpostsasonMarch31,2018isgivenunder:

Category CSL’s Total Strength OBCGroup A 266 63GroupB 126 12Group C 775 255Group D 614 343Total 1781 673

Representation of minority employees

31. The representationofminority employees invariousgroupsofpostsasonMarch31,2018isgivenunder:

Category CSL’s Total Strength MinorityGroup A 266 82GroupB 126 33Group C 775 222Group D 614 163Total 1781 500

Representation of Persons with Disabilities employees

32. TherepresentationofPersonswithDisabilitiesinvariousgroupsofpostsasonMarch31,2018isgivenunder:

Category CSL’s Total Strength PWDGroup A 266 2GroupB 126 9Group C 775 24Group D 614 23Total 1781 58


Provision for safeguard of women

33. The Sexual Harassment of Women at Work Place(Prevention,ProhibitionandRedressal)Act,2013andRulesframedthereunderarestrictlycompliedwith.AnInternalComplaintsCommitteehasbeenconstitutedin accordance with the Act chaired by a seniorwomanexecutive.TheCommitteedidnotreceiveanycomplaintduringtheyear2017.

Welfare assistance for the care of differently abled children

34. A monthly welfare assistance of ` 4,500 has beenextended to all employees for taking care of theirdifferentlyabledchildren. Inaddition, theyhavealsobeen allowed grant of special leave/time off for amaximumoffivedaysinayear.

Integrated Management System (IMS)

35. Cochin Shipyard continued to be an IMS compliantcompany encompassing ISO 9001:2008 (QualityManagementSystem),ISO14001:2004(EnvironmentalManagement System) and OHSAS 18001: 2007(OccupationalHealthandSafetyManagementSystem).CSLwillbeupgradingitsQualityManagementsystemandEnvironmentalmanagementsystemstothelatestISO9001:2015andISO14001:2015respectivelybySeptember2018.

Facility Upgrade and Capital Expenditure

36. The total capital expenditure incurred in 2017-18amountedto 157.10crores.ThisrelatedtoRenewalsand Replacements, Modernization and Expansion,

Dry Dock, ISRF, Research & Development projects,infrastructureforIACetc.

Implementation of Official Language Policy

37. Inpursuanceofsubrule (4)ofrule10oftheOfficialLanguage(UsefortheOfficialPurposesoftheUnion)Rules, 1976, Government of India have notified, intheGazetteof India, that 80%ofministerial staffofthe Company have acquired working knowledge/proficiencyinHindi.

38. LateShankarDayalSinghMemorialAwardSchemewasintroducedinCSLduring2013asperdirectionsfromMinistry of Heavy Industries and Public Enterprises.ThisyeartheawardwasgiventoSmt.PriyaAR,JuniorCommercial Assistant. Incentive scheme for doingoriginalworkinHindihasbeenmademoreattractivewithaviewtoencourageemployeestodomoreworkinHindi.

39. As per the instructions from Hindi Salahkar Samitiof Ministry of Shipping, essay writing and ‘Whatpicture says’ competitions in Hindi were organizedby the Company in connectionwith Hindi fortnightcelebrationsinwhichprimary,highschoolandhighersecondarystudentsofschoolsinKochiparticipated.

40. Various competitions in Hindi were organized inconnectionwithHindifortnightcelebrations2017foremployees,childrenofemployeesandtraineesofCSL.AspartofimplementationofOfficialLanguagePolicyof Govt. of India, CSL observes first Wednesday ofeverymonthasHindiDay.FourHindiworkshopswere

1160

100

200

Group A Group B

Total SC/ST/OBC

Group C Group D

300

400

500

600

700

800

900

41

434

Representation of Various Groups

374


organizedintheyear2017-18inwhichatotalof101employees participated. Spoken Hindi classes wereorganised in three batches in which 67 employeesparticipated.NinthissueofHindihousejournal,‘SagarRatna’wasreleasedduringthisyear.

41. CommitteeofParliamentonOfficialLanguagevisitedonNovember09,2017.

42. Joint Hindi fortnight celebrations were organizedfrom November 16 to November 30, 2017 undertheauspicesofKochiTOLIC.14employeesattendedvariouscompetitionsorganizedinthisconnection.Outoftheabove8employeeswonprizes.

Particulars of employees and related disclosures

43. In accordance with Ministry of Corporate Affairsnotification no. GSR 463(E) dated June 05, 2015,GovernmentCompaniesareexemptfromSection197oftheCompaniesAct,2013anditsrulesthereof.

Conservation of energy, technology absorption and foreign exchange earnings and outgo

44. Details are placed at Annexure-2. The Company’smajor initiative in the conservation of energy wasinstallationof solar panels on the rooftopofvariousbuildings inside CSL premises. The programme wascommencedfromthefinancialyear2013-14.Tilldatesolarpowerplanthavingcapacityof535KWhasbeencommissioned and the power generated from solarpanelsis15.05lakhsunitasonMarch31,2018.

Risk Management

45. CSLhasadoptedacomprehensiveRiskManagementPolicyatthe214thmeetingoftheBoardofDirectorsheld on September 16, 2014. The purpose ofthis policy is to put in place a comprehensive riskmanagementsystemconsistingofadefinedprocessofriskmanagement andmethodology of identification,assessment, response, monitoring and reporting ofrisks.ThepolicywouldprovidethemanagementandBoard of Directors an assurance that key risks arebeingproperlyidentifiedandeffectivelymanaged.

46. Asper thepolicy,CSLBoardat thehelmwill reviewthe risk management system in CSL. The Boardshall discharge its responsibility of risk oversight byensuringthereviewatperiodicalintervals.Boardmayalso delegate to any other person or committee thetask of independently assessing and evaluating theeffectivenessoftheriskmanagementsystem.TheCSLmanagementcomprisingofCSLBoardlevelandbelowBoard level executives has been entrustedwith theimplementation of the risk management process. InthisrespectRiskManagementCommittees(RMC)andRiskManagementSteeringCommittees(RMSCs)have

beenconstitutedtoimplementthepolicyinCSL.TheAudit Committee and the Board ofDirectors reviewthe risk management process and policy. TheYard’sproduct mix comprising of Defense and commercialshipbuilding and shiprepair gives the Company anaturalhedgeagainstmarketrisk.

Research and Development (R&D) Activities

47. R&DpolicyofCSL is toenhance the company’spre-eminenceinShipbuilding,ShiprepairandotherchosenfieldsandproductsthroughResearchandDevelopment.In-houseR&Dactivitieshavebeenundertakenduringthe year 2017-18 in the areas ofwelding proceduredevelopmentandqualificationofwelders.

48. Welding of lower thickness plates using one sidewelding process is a specialised method. Capabilitybuilding in above area is of paramount importanceto yard. In the above context, Weld ProcedureDevelopment(WPS)hasbeenundertakenin-houseforweldingoflowerthicknessplateofhighstrengthsteel(AH36) of 10mm thickness using one sideweldingprocessemployingtwinwirewithcopperbacking.Theprocedure has been validated by ABS Classificationsocietyandwelderhasbeenqualifiedforperformingtheweldingprocess.

Health, Safety & Environment (HSE)

49. CSLplacesHSEasoneofitscorevalueinoperationsconsidering the character of the industry. In orderto strengthen the HSE awareness levels among theworkforce new initiatives such as HSE briefings,issuingofHSEalertsandsameaspartofthetoolsboxtalkswas implemented. CSL understands safety is alinefunctionanditshouldbemanagedbyeveryoneintheirdomain.Intheyear2017-18providingrefreshersafety training to contractors’ workmen was ourfocus area. The Company constantly strives to create andmaintain HSE awareness to our employees andsubcontractors’ workmen through various in-houseandonsite trainingprogrammes includingemployeesinthecategoryofpersonwithdisability.

50. HSE performance for the last 3 calendar years istabulatedbelow:

Category 2015 2016 2017Fatal 0 0 0Reportableaccidents 6 7 2NonReportableAccidents 137 148 100NumberofPermanentTotalDisability 0 0 0

FrequencyRate(Reportableaccidentsinonemillionmanhours)

0.63 0.68 0.20


Fire Incident in MODU Sagar Bhushan

51. “Sagar Bhushan”, Mobile Offshore Drilling Unit ofONGC (MODU Sagar Bhushan) arrived at CochinShipyardLimitedonDecember07,2017forrepairsandthevesselwasdry-dockedonJanuary12,2018.ThevesselwasscheduledtobeundockedonFebruary28,2018. This vessel was built in the year 1987 atHindustanShipyardLimitedandhadundergonerepairsatCSLmanytimesbeforeandthelastrepairworkbyCSLonthevesselwasinthefinancialyear2007.

52. OnFebruary13,2018, therewasfire incident in theforward area of thevessel Sagar Bhushan. Itwas anexplosion near the AC compartment in the forwardareaoftheship.TheFireTenderandtheambulanceofCSLimmediatelyrushedtothestarboardsideareaofthevessel.TheFireTendersfromtheIndianNavyandKerala Fire Force also reached the site immediately.TherescueoperationwascarriedoutbyCSLfiremen,safetypersonnelandtheotheremployees ledby theSeniorManagementteamincludingC&MD.12personsweretakenoutandsenttothehospital,ofwhich5ofthemsuccumbedto injuries includingonepermanentemployee of CSL. 4 persons were admitted to thehospitaland3personsweregivenfirstaidathospitalanddischargedon thesameday itself. Inaddition totheabove,twomorepersonswhoparticipatedintherescue operationswere admitted to the hospital forreportedgiddinessorsuffocationonthenextdayoftheincident,butdischargedonthesameday.Informationof the incident was reported to all authorities asmandatedunderthestatutoryprovisions.TheHon’bleFinanceMinisterofKeralavisitedtheyardandalsothefamiliesofthevictimsonthedayoftheincidentatthebehestoftheHon’bleChiefMinisterofKerala.

53. An internal enquiry was conducted on the incidentand it was concluded that it was caused due to amomentary explosion of high impact that occurredin the air conditioning compartment. The enquiryrevealedthatthecauseofthe incidentwasahumanerrorandwasnotduetoanysystemicfailure. IntheaftermathoftheincidentCSLhasdecidedtointroduceautomatic closing valves in each of fuel gas hoses.StorageanddistributionsystemofindustrialgasesintheYardhasbeenreviewed.Vesselmanentrysystemhasbeenstrengthenedonallshipsandthefrequencyof gasmonitoringhasbeen increased in all confinedspaces onboard vessels. Various other actions totighten existing systems and to have amuch higherlevel of safety culture amongst all stakeholders areunderway.A detailed audit has been undertaken byaneightmemberspecialistteamfromtheDepartmentof Factories and Boilers, Government of Kerala andtheir recommendations have been implementedsubstantially.Allsuchactionshavethefullinvolvement

and understanding of all employees, contractors,contractworkmen,traineesetc.

54. CMDandSeniorManagementteamvisitedthefamilyof the deceased and assured them of full support.Consideringthehardshipbeingexperiencedbythekithandkinof thedeceasedand tomeet the immediatepenury of the families of the deceased, CSL haddeclaredfollowingfinancialassistanceonFebruary13,2018:(i) ` 10 Lakhs to the family of the deceased in

addition to the statutory compensation andinsurancereliefasapplicabletothem.

(ii) ` 25,000 to be disbursed on the day itself toenablethefamiliestodefraytheexpensesrelatedtothefuneralandotherrituals.

(iii) All treatment expenses incurred for the besttreatmentfortheinjured.

55. On February 14, 2018 Shri P Radhakrishnan, Hon’bleMinisterofStateforShippingvisitedCochinShipyard,andtookstockofthesituation.HemettheCSLemployeesandofficersatthesiteofthe incidentandappreciatedthe earnest efforts taken by the entire shipyard teamin the rescue operations and subsequent actions. Heconveyedhisheartfeltcondolencestothebereavedones.Heappreciatedthesteadfastandexpeditiousdecisionstaken by the CSLmanagement in reaching out to thefamilies of the deceased and for promptly announcingreasonablefinancialrelieftothefamiliesofthedeceased.He visited the injured at the hospital, interactedwiththeirdearandnearonesandpromisedfullsupportfromtheMinistryofShippingthroughtheshipyard.

56. Afterthereviewandinteractions,theHon’bleMinisterdirectedCSLtoextendthefollowingadditionalreliefstotheaffected:(i) Amountequivalenttotwomonthsnormalwages

totheinjuredimmediately.(ii) Appropriate employment on compassionate

groundstoanyeligibledependentofthedeceasedvictims.

(iii) Appropriatefinancialaidtowardstheeducationofthechildrenofthedeceaseduptoandincludinggraduatelevel.

(iv) Inadditiontothestatutorycompensationrelief,Company to disburse wages to the injured tilltheyreturnforworkinCSL.

(v) One dependent of each of the deceased whohave been offered employment by CSL, joinedfor permanent employment in CSL on June 01,2018.

57. On February 17, 2018, Shri Paul Antony IAS, ChiefSecretaryofKeralavisitedCSL,paidfloralhomageto


thedeceasedandinteractedwiththerepresentativesoftheCSLemployeesandcontractors.

58. Allunionsandassociationsexpressedtheirsatisfactionand gratitude to the management for their promptrescueoperationsandempatheticsupport&relieftothekithandkin.

Industrial security59. TotalsecurityoftheCompanycontinuedtoberobust

without causing any serious security concern duringtheyear.Allsecuritysystemsandmeasuresintroducedand installed in the Company are of internationalstandards. Periodic joint survey was conducted bytheCompanyandCISF.Twentyfourhourswaterfrontpatrolling in a dedicated speed boat with armedpersonnel and wireless surveillance (CCTV) systemcovering all critical locations and installations arein place. As per the security plan and policy of theCompany, periodic security drillswere conducted toensure promptmitigating action in the event of anysecuritybreach,crisisorcalamities.

60. Effective access control systems including biometricembeddedturnstilegatesareinplaceintheCompany.Afull-fledgedvisitor’sfacilitationcenterisoperatedforscrutinyandverificationofthecredentialsofthevisitorsto the Company. Baggage scanning system has alsobeeninstalledatthemainentrygateoftheCompany.Apart from these, special systems andmeasures suchas exclusive photo entry pass and special surveillancesystem, additional waterside security net around IACetcarepositionedandoperatedtowardstotalsecurityoftheIndigenousAircraftCarrier(IAC).ArobustcybersecuritypolicyhasalsobeenadoptedbytheCompany.

61. Materials entry and exit have been integrated withERP module which ensures effective and vigilantmonitoring of materials movement into and out oftheCompany.Nocaseof theft,sabotage, leakageofinformationetc.wasreportedduringtheyear.

62. The physical security of the Company has beenentrusted to the Central Industrial Security Force(CISF) contingent of 133 personnel headed by anofficeroftherankofAssistantCommandant.

63. CSL has also engagedDGR approved ex-servicemensecurity services for supplementing existing forcesmainlycateringtoexternalpropertiesofCSLandalsointernalspecificlocations.

Awards and Recognitions64. During the financial year CSL received following

awards:(a) KMA excellence award for best CSR activities

undertaken.(b) Bureaucracy Today CSR excellence award for

‘RuralDevelopment’,givenbyBureaucracyToday.

(c) Madhu S Nair, CMD, Cochin Shipyard Limited,washonouredwiththe‘CSR-OrientedChairman/CMD/MD of the Year (PSU)’ Award, given byBureaucracyToday.

(d) MKKNairMemorialAwardfortheSecondBestProductivity Performance from Kerala StateProductivityCouncil

(e) KeralaStateEnergyConservationAward2017inthecategoryof‘LargeScaleEnergyConsumers.’

(f) ‘Top Exporter (PSU) at Cochin for the calendaryear2017’awardfromCustoms,CentralGSTandCentralExcise.

(g) Kerala State Renewable Energy Award 2017 inappreciation of commendable achievementstowardstheutilizationofRenewableEnergyinthecategoryof‘IndustrialUnitsintheStateofKeraladuringtheyear2016-17,givenbyDepartmentofPower,GovernmentofKeralathroughANERT.

(h) Corporate Citizen of the year 2018 Award foroutstanding contribution to the profession,industry and society, given by Public RelationsCouncilofIndia.

(i) ‘Award for Best Stall’ in the National LevelVendorDevelopmentProgrammecumIndustrialExhibition & B2B Meet, ‘IND EXPO 2017’organised by MSME Development Institute,Thrissur,MinistryofMSMEfromDecember07to09,2017.

(j) ‘IndiaSeatradeAward2017’fortheShipbuilding&RepairYardoftheYear.

Board of Directors & Key Managerial Personnel

65. The Board of CSL comprises of 12 directors; 4Whole Time Directors, 6 Non-Official Part Time(Independent) Directors and 2 Official Part Time(Nominee) Directors of Government of India andGovernment of Kerala.

66. Shri Jiji Thomson IAS (Retd.) (DIN: 01178227), ShriPradipta Banerji (DIN: 00630615) and Shri NandaKumaran Puthezhath (DIN: 02547619) took overcharge as Non-Official Part Time (Independent)DirectorswitheffectfromJuly15,2017videMinistryof Shipping letter No. SY-11012/1/2016-CSL datedJuly15,2017.TheMinistryofShipping,Governmentof India vide letter F. No. SY-11012/1/2017-CSLdatedOctober04,2017appointedShri SatinderPalSingh IPS (DIN:07490296),JointSecretary,MinistryofShipping,GovernmentofIndiaasOfficialPartTime(Nominee)Directoron theBoardofCochinShipyardLimited (CSL) in place of Shri Pravir Krishna (DIN:06519104)with effect fromOctober 04, 2017. ShriSunnyThomas (DIN:06882228),Director (Technical)retiredfromservicebysuperannuationonNovember


30,2017.ShriBejoyBhasker(DIN:08103825)tookoverchargeasDirector(Technical)witheffectfromApril05,2018videMinistryofShippingletterNo.SY-11012/4/2017-CSLdatedApril04,2018.TheMinistryofShipping,Governmentof Indiavide letterSY-11012/1/2017-CSLdatedApril20,2018appointedShriK.RJyothilal IAS (DIN:01650017),PrincipalSecretary(Transport),Govt.ofKeralaasOfficialPartTime(Nominee)DirectorontheBoardofCSLinplaceofShriEliasGeorge(DIN:00204510)witheffectfromApril20,2018.

67. DetailsofchangesinKeyManagerialPersonsduringthefinancialyear2017-18andalsouptothedateofthisreportaregivenbelow:

Sl No Name DIN Designation Date of Appointment

Date of Cessation Changes if any

1 ShriMadhuSNair 07376798 Chairman&

ManagingDirector January01,2016 Continuing NoChange

2 ShriDPaulRanjan 06869452

Director(Finance)&ChiefFinancialOfficer

May01,2014 Continuing NoChange

3 Shri Sunny Thomas 06882228 Director(Technical) June01,2014 November30,

2017 Superannuation

4 Shri Suresh BabuNV 07482491 Director

(Operations) April26,2016 Continuing NoChange

5 ShriBejoyBhasker 08103825 Director(Technical) April05,2018 Continuing Appointment

6 Smt. Kala V - Company Secretary May02,1998 Continuing NoChange

Declaration and Meeting of Independent Directors

68. TheCompany has received declarations from all theIndependentDirectorsoftheCompanyconfirmingthattheymeetthecriteriaofindependenceasprescribedundertheCompaniesAct,2013.AseparatemeetingofIndependentDirectorswasheldonFebruary22,2018inwhichalltheIndependentDirectorswerepresent.

Details of Board Meetings held during 2017-18

69. TenBoardMeetingswereheldduringtheyear2017-18andthegapbetweentwomeetingsdidnotexceed120 days. The dates on which the Board Meetingswereheldareasfollows:

Sl. No Date Board Strength

No. of Directors present

1 April27,2017 9 82 May11,2017 9 83 June10,2017 9 74 July17,2017 12 75 July21,2017 12 126 August04,2017 12 107 September11,2017 12 108 November10,2017 12 99 February05,2018 11 1010 February22,2018 11 10

70. For more details with respect to the Directors,BoardandCommitteemeetingsheldduring theyearand attendance of these meetings, refer CorporateGovernance Report which forms part of Directors’Report.

Remuneration Policy / Evaluation of Board’s Performance

71. Cochin Shipyard is a 75% Government of Indiaowned Public Sector Enterprise under Ministry ofShipping. Presently the Directors of the Companyare presidential appointees and their remunerationis fixed in accordance with the DPE guidelines.Accordingly,Article21(a)oftheArticlesofAssociationof CSL states that President will appoint Directorsand determine their remuneration. Since the Boardlevel appointments are made by President of India,the evaluation of performance of such appointeesis also done by theGOI.The IndependentDirectorsevaluatedtheperformanceoftheBoardasawholeinaseparatemeetingof independentdirectorsheldonFebruary22,2018.

Report of the Nomination & Remuneration Committee on Company’s Policy on Directors’ Remuneration

72. Presently,theremunerationofBoardlevelappointeesare determined in accordance with DPE guidelines.CSL at its 228th Board meeting held on December14,2016adoptedtheNominationandRemunerationPolicyincompliancewiththeprovisionsofsection178of theCompaniesAct, 2013. and at its 241stBoard


meetingheldonMay24, 2018 amended thePolicy.ThePolicyisavailableinthewebsiteoftheCompanyathttp://www.cochinshipyard.com/investors.htm

Directors Responsibility Statement

73. YourDirectorsstatethat:

(a) in the preparation of the annual accounts fortheyear endedMarch 31, 2018, the applicableaccounting standards read with requirementssetoutunderScheduleIIItotheAct,havebeenfollowed and there are no material departuresfromthesame;

(b) the Directors have selected such accountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsof theCompanyasatMarch31,2018 andof the profit of theCompany for theyearendedonthatdate;

(c) the Directors have taken proper and sufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;

(d) theDirectorshavepreparedtheannualaccountsona‘goingconcern’basis;

(e) the Directors have laid down internal financialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancialcontrolsareadequateandareoperatingeffectively;and

(f) the Directors have devised proper systemsto ensure compliance with the provisions ofall applicable laws and that such systems areadequateandoperatingeffectively.

Contracts and arrangements with related parties

74. During the year, the Company had not entered intoany contract/ arrangement/ transactionwith relatedparties which could be considered material. YourDirectorsdrawattentionofthememberstoNote46tothefinancialstatementswhichsetsoutrelatedpartydisclosures as per Indian Accounting Standard (IndAS)24.FormAOC-2hasbeenattachedasAnnexure-3asrequiredundersection134(3)(h)oftheCompaniesAct,2013.

Corporate Social Responsibility & Sustainable Development Committee (CSR & SD Committee)

75. Presently,theCSR&SDCommitteeofCSLcomprisesofSmt.RoopaShekharRai(DIN:07565156),Non-Official

PartTimeDirectorasChairpersonoftheCommittee,Shri Radhakrishna Menon (DIN: 07518727), Non-OfficialPartTimeDirector,ShriDPaulRanjan (DIN:06869452),Director(Finance),andShriBejoyBhasker(DIN: 08103825), Director (Technical) as members.TheCorporateSocialResponsibilityandSustainabilityDevelopmentCommittee(CSR&SD)hasformulatedand recommended to the Board, a Corporate SocialResponsibility Policy (CSR Policy) indicating theactivitiestobeundertakenbytheCompany,whichhasbeenapprovedbytheBoard.TheCSRPolicycanbeaccessedontheCompany’swebsiteatthelink:http://www.cochinshipyard.com/links/CSL_CSR_14-15.pdf.

76. Cochin Shipyard started CSR activities in the year2010-11 based on the guidelines issued by theDepartment of Public Sector Enterprises (DPE)applicabletoGovernmentCompanies.CSLhasputinplaceaneffectiveCSRPolicyandplanimplementationmachinery. The CSR implementation machineryconsists of three tier system: Tier I CSL Board, TierII CSL Board Level CSR Committee consisting fourmembers of the Board headed by an IndependentDirector and Tier III CSL CSR Executive CommitteeconsistingofsixseniorlevelexecutivesacrossvariousdepartmentsoftheCompany.

77. TheCSLCSRprojects are spread throughout lengthand breadth of Kerala covering the most commonfieldsofCSRinterventionsappearinginScheduleVIIof Companies Act 2013. However, the major focusareasofCSLCSRcontinuedtobehealth,education,capacity building, environmental protection,sanitation and drinking water for the economicallypoorandweakersectionsofthesocietyincludingthedifferently abled ones, senior citizens etc. This year33%ofthetotalbudgetwasspecificallyallocatedtoSwachh Bharat projects, emphasizing the need forsupportingthenationalinitiativeofsanitation.Specialinitiatives were taken up focusing on programsincludingtoiletconstructioninschoolsandindividualhouseholdsnotonlyincoastalareasofKeralabutalsoinLakshadweep.

78. During the year, CSL has spent ` 857.08 lakhs forvariousongoingandcompletedCSLCSRprojectsandrelatedindirectexpenses.TheAnnualReportonCSRactivitiesisannexedherewithmarkedasAnnexure-4.

Audit Committee

79. The present Audit Committee of CSL is constitutedwith Shri Radhakrishna Menon (DIN: 07518727),Non-Official Part Time Director as Chairman, Adv.Krishna Das E (DIN: 02731340), Non-Official PartTime Director and Shri Nanda Kumaran Puthezhath(DIN:02547619),NonOfficialPartTimeDirectorasmembers. During the year, all recommendations of


theAuditCommitteewereacceptedbytheBoardofDirectors.Particulars regarding theAuditCommitteeareprovidedundertheSection‘BoardCommittees’inthe Report on Corporate Governance.

Corporate Governance

80. TheCompanyiscommittedtomaintainingthehigheststandards of corporate governance and has put inplaceaneffectivecorporategovernancesystem.TheCompany complies with the applicable regulationsof Securities and Exchange Board of India (ListingObligationsandDisclosureRequirements)Regulations,2015,andalsotheguidelinesoncorporategovernanceissuedby theDepartmentofPublicEnterprises.TheCompany also submits its quarterly progress reportson corporate governance within 15 days from theclose of each quarter to theMinistry of Shipping asrecommendedby theDPE in this regard.The reportoncorporategovernanceformspartoftheDirectors’Report.

Management Discussion and Analysis

81. A separate section ‘Management Discussion andAnalysis Report’ has been included in the AnnualReport and the same forms part of the Directors’Report.

Internal Financial Controls

82. TheCompanyhas inplaceadequate internalfinancialcontrolswithreferencetofinancialstatements.Duringthe year, the Company had engaged M/s. Varma &Varma, (Firm Registration No. 004532S) CharteredAccountants for reviewing and installing adequateInternal Financial Controls and to ensure proper andadequatesystemsforcompliancewiththeprovisionsofall applicable laws. Such controlswere tested andnoreportablematerialweaknessinthedesignoroperationwas observed. In order to provide for functionalautonomy,theCompanyhasasystemwhereinfinancialpowers of the Board of Directors are delegated tothe CMD. These powers are further sub-delegatedto officers at various levels for smooth and efficientdaytodayfunctioning.An independent internalauditmechanism is in place for conducting extensive auditof various operational and financial matters. C&AGconducts proprietary audit. An independent AuditCommittee of the Board of Directors also examinesinternal/ statutory audit observations and providesguidance based on the same. The Audit Committeealso looks into the internal control system, Companyprocedures and internal audit performance andreports to the Board of Directors. The Company hasimplementedanintegratedERPSystem(SAP)sinceJuly2014whichisenablingbettermanagementcontrol.

Statutory Auditors

83. M/s. Krishnamoorthy & Krishnamoorthy (FirmRegistration No. 001488S), Chartered Accountants,ErnakulamwerereappointedastheStatutoryAuditorsoftheCompanybytheComptroller&AuditorGeneralof India for the year 2017-18. The shareholdershavedelegatedthepowertofixtheremunerationofStatutoryAuditors to theBoardandaccordingly, thesamehasbeenfixedbytheBoard.

Auditors Report

84. M/s. Krishnamoorthy & Krishnamoorthy, StatutoryAuditorshavesubmittedtheirreportonthestandaloneandconsolidatedfinancialstatementsoftheCompanyfor the year ended March 31, 2018 on May 24,2018.TheReportdoesnotcontainanyqualification,reservationoradverseremarkordisclaimer.

Comments of C&AG

85. ThecommentsoftheComptrollerandAuditorGeneralof India under Section 143 (6) (b) of theCompaniesAct,2013onthestandaloneandconsolidatedfinancialstatementsoftheCompanyfortheyearendedMarch31,2018areplacedatAnnexure-5.

Cost Auditors

86. The Board has appointed M/s. Felix & Co (FirmRegistration No. 100416), Cost Accountants, as thecostauditorsforconductingtheauditofcostrecordsof theCompany for the financial year 2017-18.Theremuneration of Cost Auditor for the financial year2018-19 will be ratified by the shareholders at theensuingAGM.

Secretarial Auditor

87. The Board has appointed M/s. SVJS & Associates,PractisingCompanySecretaries,toconductSecretarialAudit for thefinancialyear2017-18.TheSecretarialAudit Report for the financialyear endedMarch31,2018 is annexedherewithmarked asAnnexure-6 tothis Report. There is no qualification, reservation oradverse remarkordisclaimer in theSecretarialAuditReport.

Internal Auditor

88. The Board has appointed M/s. Varma & Varma,Chartered Accountants, Kochi, to conduct InternalAuditforthefinancialyear2017-18.

Extract of Annual Return

89. The extract of annual return in Form MGT 9 asper Rule 12(1) of the Companies (Management &Administration)Rules,2014isplacedatAnnexure-7.


Investor Services

90. ThesharesoftheCompanyare listed inBSELimited(“BSE”)andNationalStockExchangeofIndiaLimited(“NSE”).CSLhaspaid listingfeestoBSEandNSEontime.M/s. Link Intime India Private Limited are theRegistrar&TransferAgentsinrespectoftheseequityshares. The tax free Bonds issued by the Companyin 2013-14 are fully dematerialized with both thedepositories,NSDLandCDSL.ThesebondsarelistedonWholesaleDebtMarket(“WDM”)segmentofBSE.CSLhaspaidthelistingfeestoBSEontimeinrespectoftheseBonds.M/s.LinkIntimeIndiaPrivateLimitedaretheRegistrar&TransferAgentsandM/s.SBICAPTrusteeCompanyLimitedaretheDebentureTrusteesinrespectoftheseBonds.

Vigilance

91. Vigilance Department functions advocatingtransparency, equity and competitiveness in allprocurement.ImportantCVCguidelinesarediscussedwithHeadsofDepartments for its strictcompliance.Emphasis was given to vigilance sensitization among the officers and supervisors for preventivevigilance.

92. Submission of annual property returns of executiveswas made online with a link to view the same tovigilance and the vigilance Dept. is scrutinizing thesame.

93. Effortsweretakentodevelopane-moduletofurnishthevigilancedataofofficersthroughonlineasapartofissueofonlinevigilanceclearance.

94. Further theDepartment has conducted 68 surprise/periodic inspection for the year in various areas ofoperations and suggested corrective actions onvigilance angle. All reports to the CentralVigilanceCommissionaresubmittedintimeandnoreferenceispendingwithCVC.

95. Onevigilance casewas disposedoffduring theyear2017-18 and one case relating to a contractor ispending.

Right to Information Act

96. Inorder topromote transparencyandaccountability,your Company has implemented the provisions oftheRTIAct, 2005 in its true letter and spirit and anappropriatemechanismhasbeensetupintheCompanywith a dedicated centralized RTI Cell to provideinformationtothecitizensundertheprovisionsofthisAct.AlltheRTIapplicationsandtheappealsreceivedbothonlineandofflineduringtheyear2017-18havebeen processed and information was provided in atimeboundmannerasstipulatedintheAct.

97. Therehavebeenno instancesofnon-compliancebytheCompany.NopenaltiesorstrictureswereimposedontheCompanybyanystatutoryauthorityduringthelastthreeyearswithrespecttoRTI.

Vigil Mechanism

98. The Whistle Blower Policy of CSL adopted by theBoard of Directors at the 198th Meeting held onFebruary22,2012 is functioningasVigilMechanismofCSL.TheWhistleBlowerPolicyofCSLisavailableat the link http://www.cochinshipyard.com/links/Whislte_Blower%20policy_CSL.pdf

Details of frauds reported by Auditors under Section 143

99. Nil.

Particulars of loans, guarantees or investments

100.DuringtheyearunderReport,theCompanyhasnot

(a) given any loan to any person or other bodycorporate;

(b) given any guarantee or provided security inconnection with a loan to any other bodycorporateorperson;and

(c) acquired by way of subscription, purchase orotherwise, the securities of any other bodycorporate, as prescribed under Section 186 oftheCompaniesAct,2013,exceptaninvestmentof ` 16.28 crores in the subsidiary companyviz., Hooghly Cochin Shipyard Ltd. The saidinvestment iswithin the limitofSection186oftheCompaniesAct,2013.

Material changes and commitments

101.Nomaterialchangesandcommitments,affectingthefinancial position of the Company, have occurredbetweentheendofthefinancialyearoftheCompanyandthedateofthisReport.

Details of change in nature of business

102.TherehasbeennochangeinthenatureofbusinessoftheCompanyduringtheyearunderreport.

Deposits

103.Your Company has not accepted any deposits fromthe public under Chapter V of the Companies Act,2013.

Secretarial Standards

104.The Company has complied with the applicableSecretarial Standards issued by the Institute ofCompanySecretariesofIndia.


Significant and Material orders

105.Nosignificantandmaterialorderswerepassedbytheregulators or any courts or tribunals impacting thegoingconcernstatusoftheCompanyandaffectingitsoperations.

Business Responsibility Report

106.The Securities and Exchange Board of India (SEBI)has mandated inclusion of Business ResponsibilityReport(“BRreport”)aspartoftheAnnualReportfor500 listed entities based on market capitalization.This SEBI mandate is also inserted as Regulation34(2)(f) of SEBI (LODR) regulations 2015. The SEBI(LODR) Regulations, 2015 provide a format for BRreports. It also contains a list of nine Key Principlesand various core elements under each principle toassess compliance with Environmental, Social andGovernancenorms.TheCompany’sBRreportfortheyear forms part of the Annual Report.

Acknowledgment

107.TheBoardofDirectorsareextremelythankfulforthecontinued patronage and support extended by theHon’blePrimeMinister,Hon’bleMinisterofShippingandallofficersoftheMinistryofShipping.TheBoard

wouldalso like toexpress theirgratefulappreciationforthesupportandco-operationfromvariousofficesof the Government of India, Government of Kerala,Government of West Bengal, various local bodies,theComptroller&AuditorGeneralofIndia,StatutoryAuditors,SecretarialAuditors,CostAuditors, InternalAuditors, Suppliers, Sub-contractors, Company’sBankers and our valued customers. The Board alsoplacesonrecorditsappreciationforthecontributionand support extended by all employees of CochinShipyardLtd.YourDirectorsexpresstheirappreciationandgratitudetoalltheshareholders/investorsforthetrustandconfidencereposedintheCompanyandlookforwardtotheircontinuedsupportandparticipationinsustainingthegrowthoftheCompanyinthecomingyears.

ForandonbehalfoftheBoardofDirectors

Madhu S NairChairman&ManagingDirector

DIN:07376798

Place:KochiDate:June30,2018


Annexure-1

Dividend Distribution Policy1. Preamble

1.1 The shares of CSL are listed on BSE Ltd andNational Stock Exchange of India Ltd. As perregulation43AofSecuritiesandExchangeBoardof India (Listing Obligations and DisclosureRequirements) Regulations, 2015 the topfive hundred listed entities based on marketcapitalization (calculated as on March 31stof every year) need to formulate a dividenddistributionpolicywhichshallbedisclosedintheAnnualReportandontheirWebsites.

1.2 This policy lays down the general frameworkfor considering and deciding the distribution ofdividend to theCompany’s shareholders and/orretainingofearningsforsustainedgrowth.

2. Policy framework

2.1 Thepurposeof thepolicy is tospecify inbroadterms,theexternalandinternalfactorsincludingfinancialparametersthatwillbeconsideredwhiledeciding on the distribution of dividend, thecircumstances underwhich shareholders of theCompany,mayormaynot expect dividend andthepolicyrelatingtoretentionandutilisationofearnings.Thispolicy isnotanalternativetothedecisionoftheBoardforrecommendingdividendeveryyearbasedonall relevant factorsnamely,factorsenumeratedinthispolicyandalsootheradditional factors that the Board may considerrelevant in the overall interest of the Company. However,suchadditionalfactorsifanyresultingin amendmentof thepolicywill bedisclosed intheAnnualReportaswellasthewebsiteoftheCompany.

2.2 ThepolicywillbeimplementedbytheCompanykeeping in view the provisions of SEBI (LODR)Regulations, the CompaniesAct 2013 and alsotaking into consideration guidelines issued bySEBI,DPE,DIPAM,MinistryofShippingasalsoother guidelines to theextent applicable to theCompany.

3. Effective date

3.1 Thepolicywillbeeffectivefromthefinancialyear2017-18.

4. Exclusions

4.1 Thepolicyshallnotapplyto:

a) Distributionofdividendinkindi.e.byissueoffullyorpartlypaidbonussharesorothersecurities,subjecttoapplicablelaw;

b) Distribution of cash as an alternative topayment of dividend through Buyback ofequityshares.

5. Factors considered while declaring dividend

5.1 a) InpursuanceofSection123oftheAct,no

dividend shall be declared or paid by theCompany for any financial year except outoftheprofitsoftheCompanyforthatyearoroutoftheprofitsoftheCompanyforanyprevious financial year or years arrived atafter providing for depreciation. Howevernormally, the Company will decide todeclare dividendonly out of currentyear’sprofits after providing for depreciation inaccordancewiththelawandaftertransfertothereservesoftheCompanysuchportionoftheprofitsasmaybeconsideredappropriateforfuturegrowth.

b) Interim dividend will be based on profitsof the current year as per unauditedresults after providing for depreciation inaccordance with law and Managementestimatesofprofitsforfullfinancialyear.

c) Dividend distribution tax payable by theCompanyondividendpaidtoshareholderswillalsobeconsidered.

5.2. The quantum of dividend declared by theCompany would depend upon the followingexternalandinternalfactors:a) The external factors that shall impact the

decision to pay dividend will inter-aliainclude economic environment, marketconditions, expectation of shareholders,statutory requirements and applicableGovernmentdirectivesasmaybeapplicablefromtimetotime.

b) Theinternalfactorsthatshallbeconsideredfor dividend will be profitability of the


Company,itsnetworth,itsrequirementforfunds for its Capital Expenditure towardsrenewals & replacement/ upgradation /R&Dandexpansion(CAPEX),investmentinSubsidiaries/JVs, stability of earnings, pastdividendtrends,obligationtocreditorsandanyotherfactorsasmayimpactthedecisiontodeclaredividend.

c) The Company may endeavour to payminimumannual dividendof30%ofProfitafterTax(PAT)or5%ofnetworth,whicheverishigher subject to themaximumdividendpermittedundertheextantlegalprovisions.

6. Utilisation of retained earnings

6.1 The Company is a major player in the shipbuilding and ship repair sector and is acutelyconsciousof theneedtoploughbackadequateprofits for operations and capital investment inordertomaintain,andmoreimportantlyimproveitsmarketposition in the faceofemergingnewtechnologies requiring investments to stayabreast of current technologies, competitionarising from the private players, both domesticand foreign. The Company has an ambitiousexpansion programme, Capex requirementswhich includes multi locational shiprepairing/building facility, two major capital projects viz. a drydock at the existing premises and a newshiprepaircomplexatCochinPortTrustpremisesand also has necessarily to invest in upgrading& renewals and replacement of its existingfacility and R&D projects. Further, with theanticipatedhigher growth in salesyearonyear,the incremental working capital requirementsalsowill have to bemet increasingly from cashandreservesoftheCompany.

7. Circumstances under which the shareholders may or may not expect dividend

7.1 The Company has been consistently payingdividends to its shareholders and that it willcontinue to do so in future is a reasonableexpectation unless circumstances warrant thecontrary.

7.2 The shareholders of the Company may ormay not expect dividend depending upon thecircumstances including, but not limited, to thefollowing:-

a) In the event of inadequacy of profits orwhenevertheCompanyhasincurredlosses;

b) Whenever the Company undertakes orproposes to undertake significant capitalexpenditureor investment in newareasofbusiness whether in CSL itself or in Jointventures/Subsidiaries;

c) Significantly higher working capitalrequirementadverselyimpactingcashflows;or

d) WhenevertheCompanyproposestoutilisethesurpluscashforbuybackofsecurities;

e) Anyothercircumstance/instancewhichtheBoardofDirectorsmayconsiderrelevanttothedividenddeclarationdecisions.

7.3 The Company will take a decision on thedividend distribution keeping all external andinternal factors in view and duly adopting ajudiciousbalancebetweendirectlyrewardingtheshareholdersthroughdividenddeclarationontheonehandand increasingshareholderswealth infuturethroughappropriateretentionofprojectsanditsrealisationforsustainablegrowth,ontheother.

8. Parameters to be adopted with regard to various classes of shares

8.1 TheCompanyhasissuedonlyoneclassofsharesi.e.equityshareswithequalvotingrights,allthemembersoftheCompanyareentitledtoreceivethesameamountofdividendpershare.

9. Interpretation & amendments

9.1. AnywordusedinthisPolicyshallhavethesamemeaning as defined under the Companies Act,2013, SEBI Listing Regulations, 2015 and anyotherapplicablestatutoryregulations.

9.2 The Board of Directors may review, amendand modify the policy at any point of timeas it may deem necessary and /or as may berequired from time to time in accordancewithsubsequent amendments in Companies Act,2013&CompaniesRules,Circulars,Notifications,Guidelines thereto, SEBI Listing Regulations,2015, the relevant guidelines of Ministry ofFinance,Ministryof Shipping,DPE,DIPAMetc.andotherapplicablestatutes.

10. Disclosure

10.1ThispolicyshallbedisclosedintheAnnualReportand hosted on theCompany’swebsite tomeetstatutoryrequirementsifany.


Annexure-2

A. ConservationofEnergya. Stepstakenorimpactonconservation

ofenergyduringtheyear2017-18STEPS TAKEN• Electrification of new buildings is carried out with LED lights

insteadofconventionaldischargelamps.

• ReplacedconventionaldischargelampstreetlightswithLEDlights.

• Leakages in the compressed air distribution system and otherindustrialgaslinesareregularlymonitoredandrectified.

• ReducingtheusageofMainAirCompressorduringlunchbreak.

• Switching off Main power supply to shops, Quays, & Docksmomentarilyat12:15hrs.Thistripsmancoolers,roofextractors(controlledthroughstarters),etc.whicharenotrequiredduringthelunchbreak.

• ProvidedVariable Frequency Drive (VFD) with panel for ballastpumpsinshiprepairdock

• ReducingtheusageofmainaircompressorsduringdaytimeandutilizingportableaircompressorclusterswithVFD.

• Displayed energy saving stickers & posters, conducted seminarandquizcompetitionforinculcatingawarenessamongemployeesforenergyconservationaimedatoptimumuseofelectricpower.

• Powerfactoriscontinuouslymonitoredandmaintainednearunity.

• VFDInstalledfor40TOBELLTTcraneforLuffMovement.

• Installationof 300 kWgrid connected solar powerplant on therooftopofHullShopinprogress.

IMPACTEnergy saving is approx. 10.93 Lakhs units per annum with theimplementationofmeasuresspecifiedabove.

b. Steps taken for utilizing alternatesourcesofenergy.

• Installationof 300 kWgrid connected solar powerplant on therooftopofHullShopinprogress.

c. Capital investment on energyconservationequipments

• Anamountofapproximately`44.81Lakhshasbeeninvestedforconservationofenergy


B. TechnologyAbsorption,AdaptationandInnovation(i) Effortsmade

towardstechnologyabsorption.

i. Developed contract & basic design for 16 Nos. Gillnet Long Liner Fishing Vessels intechnicalcollaborationwiththeCentralInstituteofFisheriesTechnology,ICAR.

ii. DevelopedconceptdesignformarineambulanceboatforKeralaGovt.

iii. Development of specification for implementation of accommodation system & HVACPackagefor500PAX.

iv. Developmentofspecificationforimplementationofaccommodationsystemfor1200PAX.

v. Development of specification for implementation of HVAC & refrigeration system for1200PAX.

vi. Developmentofspecificationfortheprocurementofequipment/systemsincompliancetoSRtP(SafeReturntoPort)requirementsfor1200PAX.

vii. Development of specification for the procurement of power and automation system,navigation and communication system, lighting, electrical cables for 1200 PAX incompliancewithSRtPrequirements.

viii. In-house development of 3D modeling for accommodation & other outfit Systemsin accommodation spaces for the Technology Demonstration Vessel (Ship - 020) forDRDO/500 PAX forA&NAdministration/1200 PAX forA&NAdministration inTribonunderprogress.

ix. In-house development of 3Dmodeling for electrical outfitting for 1200 PAX forA&NAdministrationisinprogressincompliancewithSRtPrequirements.

x. In-house conceptual design of integrated fire and flood detection system by suitablycombiningexistingstandalonesystems forfiredetectionandflooddetectionforSRtPcompliancefor1200PAX.

xi. Software upgrades for “Cable Manager” – In-house developed cable scheduling andnestingsoftwareforusageonboardprojects.

xii. Software upgrades for “Electrical Apps” – In-house developed production designcustomizationtoolforTribonM3forusageinongoingprojects.

xiii. FunctionaldesigndrawingsdevelopedforelectricalcableroutesandantennaarrangementbasedontheEMI/EMCrequirementsforTechnologyDemonstrationVesselShip-020forDRDO;specialpurposevesselforGovt.ofIndia;

xiv. DevelopmentofspecificationfortheprocurementofspecializedHatchCoversrequiredforthearticlelaunchingfortheTechnologyDemonstrationVessel(Ship-020)forDRDO;specialpurposevesselforGovt.ofIndia;

xv. Installationofhighvoltagepowergeneration&distributionsystem,highpowerpropulsionsystem, UPS systems with neutral arrangement for client system power distribution,navigation&communicationsystemsmeetingDNVNaut-AWandIRSIBSnotations,SPScoderequirements,onboardTechnologyDemonstrationVesselShip-020;specialpurposevesselforGovt.ofIndia;

xvi. Structural interface of client systems (DRDO) with Ship systems for TechnologyDemonstrationVesselShip–020;specialpurposevesselforGovt.ofIndia;

xvii. Installationof1500NBvalvewithelectricactuationonboardTechnologyDemonstrationVesselShip–020;specialpurposevesselforGovt.ofIndia;

xviii.Preparation of technical specification and 3Dmodelling of completely explosion prooftype electrical overhead cranes for client article handling operations for TechnologyDemonstrationVesselShip–020;specialpurposevesselforGovt.ofIndia.


DisclosureofParticularsinrespectofAbsorption(ii) Benefits derived like product

improvement, cost reduction, productdevelopmentorimportsubstitutions.

i. Improved self reliance, better control and focus on productivityimprovement.

ii. Accesstohighendclienteleandenhancedcredibilityonaccountofhighqualitydesignsolutions.

iii. Reduction of cost due tominimized rework, as interface of thesystemscanbeviewedandcorrectedin3Dmodellingoncomputer.

iv. ConsiderableimprovementintimeandcostsavingforproductionofvesselsbeingbuiltatShipyard.

v. Yard has developed expertise and skill to produce production-engineering drawings by extracting relevant data from Tribonmodel.

vi. Carriedoutmodellingoftheentirehull,facilitatingveryshortcycletimefordrawingissue.

vii. Capabilityachievedinundertakingmultipleprojectsconcurrently.viii. Considerable improvement in time for estimation of cables and

optimalroutedesignforcables.(iii) Incaseofimportedtechnology(imported

during the last three years reckonedfromthebeginningofthefinancialyear)followinginformationmaybefurnisheda. Thedetailsoftechnologyimported Nilb. Theyearofimport NotApplicablec. Whetherthetechnologybeenfully

absorbedNotApplicable

d. If not fully absorbed, areas whereabsorptionhasnot takenplace,andthereasons thereof

NotApplicable

(iv) Expenditure incurred on Research andDevelopment

Nil

C. ForeignExchangeEarningsandOutgo(`inlakhs)

2017-18 2016-17Income from Foreign ExchangeFromShipbuilding 0.00 10442.05From Shiprepair 496.90 0.00Total 496.90 10442.05Expenditure in Foreign ExchangeMaterials(CIFValue) 94984.50 40846.20Design&Documentation 2.65 28456.92ServiceCharge&Others 3539.79 15709.26Total 98526.94 85102.38



DIN:07376798KochiJune30,2018


Annexure-3

FormNo.AOC-2(Pursuanttoclause(h)ofsub-section(3)ofsection134oftheCompaniesAct,2013and

Rule8(2)oftheCompanies(Accounts)Rules,2014)

Formfordisclosureofparticularsofcontracts/agreementsenteredintobytheCompanywithrelatedpartiesreferredtoinsubsection(1)ofsection188oftheCompaniesAct,2013includingcertainarmslengthtransactionsunderthirdprovisothereto:

1. Details of contracts or arrangements or transactions not at arm’s length basisName(s)oftherelatedpartyandnatureofrelationship NotApplicableNatureofcontracts/arrangements/transactions NotApplicableDurationofthecontracts/arrangements/transactions NotApplicableSalienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany NotApplicableJustificationforenteringintosuchcontractsorarrangementsortransactions NotApplicableDate(s)ofapprovalbytheBoard NotApplicableAmountpaidasadvances,ifany NotApplicableDateonwhichthespecialresolutionwaspassedingeneralmeetingasrequiredunderfirstprovisotosection188 NotApplicable

2. Details of material contracts or arrangements or transactions at arm’s length basisName(s)oftherelatedpartyandnatureofrelationship NotApplicableNatureofcontracts/arrangements/transactions NotApplicableDurationofthecontracts/arrangements/transactions NotApplicableSalienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany NotApplicableDate(s)ofapprovalbytheBoard NotApplicableAmountpaidasadvances,ifany None





Annexure-4

REPORTONCORPORATESOCIALRESPONSIBILITY1. AbriefoutlineoftheCompany’sCSRPolicy,includingoverviewofprojectsorprogramsproposedtobeundertakenand

referencetotheweb-linktotheCSRPolicyandprojectsorprograms.a) CochinShipyardLimitedCorporateSocialResponsibilityPolicy(CSLCSRPolicy):

(i) CSLCSRPolicyapprovedandadoptedby theBoardofCSL in its213thMeetingheldonSeptember16,2014isfoundedonthebasicprinciplesofsharedandinclusivegrowthofthecommunityandenvironmentandisamanifestationofCompany’scommitmenttothepeopleandplanetwithoutsacrificingitseconomicsustainability.Morethanamandatorypractice,CSRforCSLisitswayofconductingthebusiness.ThePolicyencompassesthebasictenetsofCSRanddomainofCSRactivitiesasenshrinedintheCompaniesAct,2013andtheCSRRulesframedthereunderwithparticularreferencetotheScheduleVIIoftheAct.

(ii) Accordingly,CSLCSRPolicycontains:• CSRVisionandMission• ThrustareasofCSRinterventions• CSRactivities• CSRManagementstructureinCSL• CSRimplementationprocessormodusoperandi• CSRbudgeting• Documentationandreporting

(iii) Web-linktotheCSRPolicyandprojectsorprograms:http://www.cochinshipyard.com/links/CSL_CSR_14-15.pdf

(b) DetailsofCSRspentonprojectsorprogramsundertaken(Asshownunder5below)2. TheCompositionoftheCSRCommittee(BoardLevel)asondate:

i) Smt.RoopaShekharRai DIN:07565156 IndependentDirectorandChairpersonoftheCommitteeii) ShriRadhakrishnaMenon DIN:07518727 IndependentDirectoriii) ShriDPaulRanjan DIN:06869452 Director(Finance)iv) ShriBejoyBhasker DIN:08103825 Director(Technical)

3. Averagenetprofitofthecompanyforthelastthreefinancialyears:`426.87crore.4. PrescribedCSRExpenditure(twopercentoftheamountasinitem3above):`8.54crore.5. DetailsofCSRspentduringthefinancialyear

a) Totalamounttobespentforthefinancialyear : ` 8.54croreb) Totalamountspent : ` 8.57crorec) Amountunspent,ifany : Nil

RESPONSIBILITY STATEMENT‘TheimplementationandmonitoringofCorporateSocialResponsibility(CSR)Policy,isincompliancewithCSRobjectiveandpolicyoftheCompany.’

Madhu S Nair Roopa Shekhar Rai(DIN:07376798) (DIN:07565156)Chairman&ManagingDirector ChairpersonofCSR&SDCommittee

Place:KochiDate:June30,2018


Mannerinwhichtheam

ountspentduringthefinancialyear2017–18

Sl.

No.

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Num

ber a

nd

Cate

gory

of

Pro

ject

Be

nefic

iarie

s

ASw

achhBharatP

rojects(Major)

1.HarithaKeralam–

100Pondsin50Days

(ASwachhBharat

Project)

Cl.(i)Sw

achh

BharatAbhiyan

ofGoI

ErnakulamDistrict,

Kera

la S

tate

30.00

30.00

30.00

Dist

rict

Collector,

Ernakulam

Entire

Ernakulam

Dist

rict

2.Su

ppor

t for

co

nstr

uctio

n of

householdtoilets

inLakshadweepto

achieveODFstatusto

Lakshadw

eep

Cl.(i)Sw

achh

BharatAbhiyan

ofGoI

UTIofLakshadweep

100.00

100.00

100.00

Govt.ofIndia,

Lakshadw

eep

Administration

(Departmentof

Environm

ent

andForests)

UTIof

Lakshadw

eep

3.Co

nstr

uctio

n of

toile

ts

for t

he c

oast

al p

eopl

e of

Alle

ppey

.

Cl.(i)Sw

achh

BharatAbhiyan

ofGoI

Coas

tal a

rea

of

Alleppeydistrictof

Kera

la S

tate

32.50

16.25

16.25

Coas

tal

Educational

Society,

Alle

ppey

50Fam

ilies

4.Supportforrestoring

the

scul

ptur

es in

SubhashCh

andra

BoseParklocated

intheParkAvenue

areaofErnakulam

backwaters

Cl.(i)Sw

achh

BharatAbhiyan

ofGoI

ErnakulamDistrictof

Kera

la S

tate

20.00

20.00

20.00

Municipal

Corp

orat

ion

ofKochialong

withCentre

forH

eritage,

Environm

ent

and

Dev

elop

men

t

Peoplewho

arevisiting

thePark

5.Su

ppor

t for

Cle

an

GangaMission

Activities(Fund)to

NMCG

Cl.(i)Sw

achh

BharatAbhiyan

ofGoI

ThebanksofRiver

Ganga

60.00

60.00

60.00

National

Missionfor

CleanGanga

(NMCG

)

People

whouse

theGanga

waterand

the

faci

litie

s around.

Sub

Tota

l (A

)24

2.5

226.

2522

6.25


Sl.

No.

Nam

e of

Pro

ject

with

a

brie

f

Sect

or in

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ch

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ect i

s co

vere

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e no

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ched

ule

VII

to C

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nies

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t, 20

13, a

s am

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ects

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ams

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ocal

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ency

Num

ber a

nd

Cate

gory

of

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ject

Be

nefic

iarie

s

BSw

achhBharatP

rojects(Minor)

1.Fi

nanc

ial s

uppo

rt fo

r thepublicationofthe

Book“N

janumEnte

Bhum

iyum

Njanum

EnteSam

oohavum’

Cl.(i)prom

oting

health(Swachh

Bharat)

ErnakulamDistrictof

Kera

la S

tate

05.00

05.00

05.00

Welfare

Serv

ice

Society,

Ernakaulam

5,000Bo

ok

love

rs

2.Su

ppor

t for

Harithardra

Santhw

anam

-A27

DaysSw

achatha

awarenesscampaign

Cl.(i)prom

oting

health(Swachh

Bharat)

All

Dist

ricts

of K

eral

a St

ate

01.00

00.63

00.63

Bodhananda

Srut

i Sev

a Trust,Vyttila

2000people

including

students

3.Prom

otionof

environm

entfriendly

itemsthatreduce

pollutionandenhance

the

inco

me

of

marginalizedwom

en

Cl.(i)prom

oting

health(Swachh

Bharat)

ErnakulamDistrictof

Kera

la S

tate

03.00

01.50

01.50

St.Theresa’s

College,

Ernakulam

40Poor

wom

enand

students

4.Su

ppor

t for

constructionofnew

septictankforgirls

hostelatV

ivekananda

TribalResidential

schoolMattilayam

,VellaMunda,

WayanadDistrict

Cl.(i)prom

oting

health(Swachh

Bharat)

Mattilayam

,Vella

Munda,Wayanad

Dist

rict o

f Ker

ala

Stat

e

04.50

04.50

04.50

Vivekananda

Tribal

Resid

ential

scho

ol

Mattilayam

,VellaMunda

,Wayanad

Dist

rict

100Tribal

Students

Sub

Tota

l (B)

13.5

011

.63

11.6

3


Sl.

No.

Nam

e of

Pro

ject

with

a

brie

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Sect

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ect i

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vere

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ber a

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of

Pro

ject

Be

nefic

iarie

s

CMajorProjects(General)

1.Fi

nanc

ial s

uppo

rt fo

r co

nstr

uctio

n of

an

early

inte

rven

tion

cum

sensoryintegration

ther

apy

unit

for

autisticchildrenat

Aranattukara,Thrissur

Dist

rict

Cl.(ii)promoting

education,

includingspecial

education


Dist

rict

40.00

40.00

40.00

Ass

ocia

tion

forM

entally

Handicapped

Adults(AMHA

Kuryattukara,

Thris

sur

40Autistic

Children

2.Fi

nanc

ial s

uppo

rt fo

r defendingthehuman

rightsofthedestitute,

theagedandthe

mentallydisabledin

relie

f set

tlem

ent a

t Palluruthy

Cl.(iii)settingup

ofhom

esand

hostelsforw

omen

andorphans

Palluruthy,Ernakulam

District,KeralaState

11.76

11.76

11.76

PeoplesCo

uncil

for S

ocia

l Justice(PCS

J),

Ernakulam

120old

andthe

sickinthe

Palluruthy

relie

f se

ttle

men

t

3Fi

nanc

ial s

uppo

rt

for c

ompl

etio

n of

incompleteIndiraAvas

YojanahousesatBlock

PanchayatVeliyanad,

Alle

ppey

Dist

rict

Cl.(x)Rural

developm

ent

projects

VeliyanadBlock

PanchayatofA

lleppey

District,KeralaState

36.00

36.00

36.00

BDO,Veliyanad

BlockPanchayat

of A

llepp

ey

District,Kerala

Stat

e

31poor

fam

ilies

of

the

Panchayat

4.Fi

nanc

ial S

uppo

rt fo

r skilldevelopmentin

weldingtechnology

for60unem

ployed

youthwhobelongto

BPLFamilies

Cl.(ii)and(iii)

Livelihood

enha

ncem

ent

projectsand

mea

sure

s forreducing

inequalitiesfaced

bySocially&

econ

omic

ally

backwardgroups

Diff

eren

t Dist

ricts

of

Kera

la32.85

16.42

16.42

DonBosco

Tech,Vaduthala,

Ernakulam

60Students


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No.

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ber a

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nefic

iarie

s

5.Fi

nanc

ial s

uppo

rt

for c

onst

ruct

ion

ofacounseling

cumrehabilitation

trainingcentreat


DistrictbySO

LACE

Cl.(i)prom

oting

heal

th c

are

including

prev

entiv

e he

alth


Dist

rict

10.00

5.00

5.00

SOLACE

,Aranattukara,

Thris

sur D

istric

t

50Children

whoare

affectedwith

Canc

er

6.Fi

nanc

ial a

ssist

ance

fo

r the

pur

chas

e of

a50seaterm

arine

boattoVivekananda

RockMem

orial&

VivekanandaKendra,

Kanyakum

ari

Cl.(v)protectionof

nationalheritage,

artandculture

Kanyakum

ariD

istrict

ofTam

ilNaduState

60.00

18.00

18.00

Vivekananda

RockMem

orial

&Vivekanan-

daKendra,

Vivekanandapur-

am,Kanyakumari,

TamilNadu

40staff

mem

bersof

theInstitute

7.Fi

nanc

ial s

uppo

rt

forsettingupa

rehabilitationcum

yogacentreforthe

agedbyPunnyam

TrustatVazhoor,

Kott

ayam

Dist

rict

Cl.(iii)settingup

ofhom

esand

hostelsforw

omen

andorphans

Vazhoor,Kottayam

D

istric

t40.00

38.50

38.50

PunnyamTrust

atVazhoor,

Kott

ayam

Dist

rict

40aged

peop

le

8.Fi

nanc

ial a

ssist

ance

foradialysisclinic

supportprogram

atLittleFlower

HospitalandResearch

CentreAngam

aly,

to tr

eat e

ffec

tivel

y thepatientsw

ho

havebeenbittenby

poiso

noussnake

Cl.(i)prom

oting

heal

th c

are

including

prev

entiv

e he

alth

Angam

aly,Ernakulam

district

28.90

28.90

28.90

LittleFlower

Hospitaland

Rese

arch

Cen

tre

Angam

aly,

Ernakulam

Dist

rict

Snakebitten

patie

nts


Sl.

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e of

Pro

ject

with

a

brie

f

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ch

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ect i

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vere

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ched

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to C

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nies

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t, 20

13, a

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ects

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ams

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expe

nditu

re

up to

the

repo

rting

pe

riod

(`

Lak

hs)

Am

ount

Spe

nt:

Dire

ct o

r thr

ough

im

plem

entin

g ag

ency

Num

ber a

nd

Cate

gory

of

Pro

ject

Be

nefic

iarie

s

9.Fi

nanc

ial s

uppo

rt fo

r conservationofwhale

sharksalongKerala

andLakshadw

eep

watersbyW

ildLife

TrustofIndia,N

ew

Del

hi

Cl.(iv)

Cons

erva

tion

of

natu

ral r

esou

rces

Keralaand

Lakshadw

eepCo

astal

area

40.00

15.00

15.00

WildLifeTrustof

India,New

Delhi

500

Fish

erm

en

Com

mun

ities

10.

Fina

ncia

l sup

port

for

minimum

25joint

replacem

entsurgeries

bySudheendra

MedicalMission,

Ernakulam.

Cl.(i)prom

oting

heal

th c

are

including

prev

entiv

e

Allthedistrictsof

Kera

la S

tate

25.00

7.50

7.50

Sudheendra

MedicalMission,

Ernakulam

25 p

atie

nts

whosuffer

Knee

problems

11.

Fina

ncia

l ass

istan

ce

forestablishingIT

labatSRV

Govt.

(Model)H

ighSchool,

Ernakulam

Cl.(ii)promoting

education,

includingspecial

education

Ernakulamdistrictof

Kera

la S

tate

11.54

11.54

11.54

SRVGovt.Model

HighSchool,M

G

Road,Ernakulam

1200School

Children

12.

RequestforFinancial

supp

ort f

or th

e ‘Velicham’educational

project

Cl.(ii)promoting

education,

includingspecial

education

Vypin,Ernakulam

D

istric

t of K

eral

a St

ate

10.00

10.00

10.00

Dep

uty

Dire

ctor

Education,

Ernakulam

Dist

rict

3000School

Children

13.

SupportforNandanam

Balasadanambuilding

forthedestitute

children,Koovapadam,

Koch

i.

Cl.(ii)promoting

education,

includingspecial

education

Koovappadam,

Ernakulamdistrictof

Kera

la S

tate

16.00

16.00

16.00

Nandanam

Balasadanam,

Koovapadam

,Ko

chi

40destitute

children

14.

Supp

ort f

or a

sch

ool

bustoRakshaSociety

for t

he c

are

of

childrenwithspecial

needs.

Cl.(ii)promoting

education,

includingspecial

education

Mattanchery,

ErnakulamDistrict

16.53

16.53

16.53

Secr

etar

y ofRaksha

Society,Darrag

SalamRoad,

Kochangadi,

Coch

in

75Special

Children


Sl.

No.

Nam

e of

Pro

ject

with

a

brie

f

Sect

or in

whi

ch

the

Proj

ect i

s co

vere

d (C

laus

e no

. of S

ched

ule

VII

to C

ompa

nies

Ac

t, 20

13, a

s am

ende

d)

Proj

ects

or P

rogr

ams

(1) L

ocal

are

a or

oth

er

(2) S

peci

fy th

e St

ate

and

dist

rict w

here

pr

ojec

ts o

r pro

gram

s w

as u

nder

take

n

Am

ount

ou

tlay

(bud

get)

proj

ect o

r pr

ogra

m

wis

e

(` L

akhs

)

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ount

sp

ent o

n th

e pr

ojec

ts o

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ogra

ms

Sub-

head

s:

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irect

ex

pend

iture

on

pro

ject

or

prog

ram

s (2

) Ove

rhea

ds

(` L

akhs

)

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ulati

ve

expe

nditu

re

up to

the

repo

rting

pe

riod

(`

Lak

hs)

Am

ount

Spe

nt:

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ct o

r thr

ough

im

plem

entin

g ag

ency

Num

ber a

nd

Cate

gory

of

Pro

ject

Be

nefic

iarie

s

15.

Supportforatraining

anddevelopm

ent

cent

re fo

r marginalizedwom

en-

Thekkumbhagam

-Vizhinjam

,Th

iruva

nant

hapu

ram

.

Cl.(ii)

Employment

enhancing

vocationalskills,

especiallyamong

children,wom

en,

elderly,andthe

differently-abled.

Thekkumbhagam

-V

izhinjam

,Th

iruva

nant

hapu

ram

D

istric

t of K

eral

a St

ate

30.00

15.00

15.00

Vizhinjam

Thekkumbhag-

am,M

uslim

Jama’ath.

50

Marginalized

Wom

enof

the

area

.

16.

Supp

ort f

or a

computerlaband

a sm

art c

lass

room

atPanditK

aruppan

Mem

orialLibrary

&ReadingRoomat

Thevara,Cochin

Cl.(ii)promoting

education,

includingspecial

education

Thevara,Ernakulam

D

istric

t of K

eral

a St

ate

15.00

7.50

7.50

PanditKaruppan

Mem

orialLibrary

&Reading

Room

,Thevara,

Coch

in

200

Childrenof

the

area

17.

Supp

ort f

or c

ente

nary

mem

orialskill

developm

entblock

atSMVHigher

SecondarySchool,

Poonjar,Kottayam

D

istric

t

Cl.(ii)Promoting

education

Poonjar,Kottayam

D

istric

t of K

eral

a St

ate

30.00

25.00

25.00

SMVHigher

Secondary

School,Poonjar

1000School

Children

18.

Supportforanew

schoolbusto

SnehabhavanSpecial

Scho

ol fo

r the

MentallyChallenged,

Ettumanoor,Kottayam

D

istric

t.

Cl.(ii)promoting

education,

includingspecial

education

Ettumanoor,Kottayam

D

istric

t of K

eral

a St

ate

16.62

16.62

16.62

Director,

Snehabhavan

Spec

ial S

choo

l fortheMentally

Challenged,

Ettumanoor,

Kott

ayam

Dist

rict

50Special

Children


Sl.

No.

Nam

e of

Pro

ject

with

a

brie

f

Sect

or in

whi

ch

the

Proj

ect i

s co

vere

d (C

laus

e no

. of S

ched

ule

VII

to C

ompa

nies

Ac

t, 20

13, a

s am

ende

d)

Proj

ects

or P

rogr

ams

(1) L

ocal

are

a or

oth

er

(2) S

peci

fy th

e St

ate

and

dist

rict w

here

pr

ojec

ts o

r pro

gram

s w

as u

nder

take

n

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ount

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tlay

(bud

get)

proj

ect o

r pr

ogra

m

wis

e

(` L

akhs

)

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ount

sp

ent o

n th

e pr

ojec

ts o

r pr

ogra

ms

Sub-

head

s:

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irect

ex

pend

iture

on

pro

ject

or

prog

ram

s (2

) Ove

rhea

ds

(` L

akhs

)

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ulati

ve

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nditu

re

up to

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rting

pe

riod

(`

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hs)

Am

ount

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nt:

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ct o

r thr

ough

im

plem

entin

g ag

ency

Num

ber a

nd

Cate

gory

of

Pro

ject

Be

nefic

iarie

s

19.

Supp

ort f

or v

ehic

le

andotherequipments

forM

ridulasparsham

a sp

ecia

l sch

ool

fordifferently

abledpersonsat

Thrip

unith

ura

Cl.(ii)promoting

education,

includingspecial

education

Thripunithura,

ErnakulamDistrictof

Kera

la S

tate

12.00

12.00

12.00

Chairman,

Mridulasparsham

SpecialSchool,

Thrip

unith

ura

40special

children

20.

Supp

ort f

or a

n am

bulancetoAshraya

CharitableSociety,

Kalayapuram,Kollam

Cl.(iii)Settingup

old-agehomes,

daycarecenters

andsuchother

faci

litie

s fo

r sen

ior

citizens.

Kalayapuram,Kollam

Dist

rict o

f Ker

ala

Stat

e12.00

12.00

12.00

Ash

raya

Ch

aritable

Society,

Kalayapuram,

Kolla

m

300Inmates/

patie

nts

21.

Ass

istan

ce fo

rVidyaposhanam

-Poshakasam

rdham

Project(Mid-Day

MealsforStudents)

Cl.(ii)promoting

education

ErnakulamDistrictof

Kera

la S

tate

10.00

10.00

10.00

SelectedSchools

from

Ernakulam

Parliam

ent

Cons

titue

ncy

3000School

Children

22.

Supp

ort f

or A

ll Ke

rala

Ch

ildren’sFest2017

Cl.(v)protection

of n

atio

nal

heritage,artand

cultu

re

The

entir

e st

ate

of

Kera

la12.00

12.00

12.00

CochinShipyard

RecreationClub,

Koch

i

6000

Chidlren

Sub

Tota

l (C)

516.

2038

1.27

381.

27


Sl.

No.

Nam

e of

Pro

ject

with

a

brie

f

Sect

or in

whi

ch

the

Proj

ect

is c

over

ed

(Cla

use

no. o

f Sc

hedu

le V

II to

Com

pani

es

Act,

2013

, as

amen

ded)

Proj

ects

or

Prog

ram

s (1)

Lo

cal a

rea

or

othe

r (2)

Spe

cify

th

e St

ate

and

dist

rict w

here

pr

ojec

ts o

r pr

ogra

ms w

as

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rtak

en

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ount

out

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get)

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ect o

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ogra

m w

ise

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ount

spen

t on

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ects

or

pro

gram

s Su

b-he

ads:

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ct

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nditu

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on p

roje

ct o

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ogra

ms

(2) O

verh

eads

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hs)

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ulati

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nditu

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hs)

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ount

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plem

entin

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ency

Num

ber a

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gory

of

Pro

ject

Be

nefic

iarie

s

DMinorProjects(General)

1.SupportforIT

equipm

entsto

Govt.H.School

Kanjiramattom,

Thodupuzha,Idukki

Cl.(ii)promoting

education

Kanjiramattom,

Thodupuzha,

IdukkiDistrictof

Kera

la S

tate

04.00

04.00

04.00

Headmaster

Govt.High

Scho

ol

Kanjiramattom,

Thodupuzha,

IdukkiDistrict

400School

Children

2.D

evel

opm

ent

supp

ort t

o G

ovt.

HigherSecondary

SchoolKum

arakom

,Ko

ttay

am D

ist.

Cl.(ii)promoting

education

Kumarakom

,Ko

ttay

am

Dist

rict o

f Ker

ala

Stat

e

04.00

04.00

04.00

Govt.Higher

SecondarySchool

Kumarakom

,Ko

ttay

am D

istric

t

500School

Children

3.D

onat

ion

of fu

rnitu

re

andcomputersto

RamaVarmaUnion

L.P.SchoolCherai,

ErnakulamDistrict.

Cl.(ii)promoting

education

Cherai,

Ernakulam

Dist

rict o

f Ker

ala

Stat

e

02.00

02.00

02.00

Ram

a Va

rma

UnionL.P.

SchoolCherai,

Ernakulam

Dist

rict

150School

Children

4.Fi

nanc

ial s

uppo

rt fo

r prom

otingGeriatric

CarebyRedCross

Kakkanadu

Cl.(iii)Setting

upold-age

homes,day

care

cen

ters

andsuchother

faci

litie

s fo

r seniorcitizens.

Kakkanadu

Ernakulam

Dist

rict o

f Ker

ala

Stat

e

05.00

02.50

02.50

RedCross

Soci

ety

Kakkanadu,

Ernakulam

Dist

rict

40Aged

People

5.Fi

nanc

ial s

uppo

rt fo

r prom

otingGeriatric

CarebyRotaryClub

of K

alam

asse

ry.

Cl.(iii)Setting

upold-age

homes,day

care

cen

ters

andsuchother

faci

litie

s fo

r seniorcitizens

Kala

mas

sery

Ernakulam

Dist

rict o

f Ker

ala

Stat

e

05.00

05.00

05.00

RotaryClubof

Kalamassery,

Ernakulam

Dist

rict

45Aged

peop

le


Sl.

No.

Nam

e of

Pro

ject

with

a

brie

f

Sect

or in

whi

ch

the

Proj

ect

is c

over

ed

(Cla

use

no. o

f Sc

hedu

le V

II to

Com

pani

es

Act,

2013

, as

amen

ded)

Proj

ects

or

Prog

ram

s (1)

Lo

cal a

rea

or

othe

r (2)

Spe

cify

th

e St

ate

and

dist

rict w

here

pr

ojec

ts o

r pr

ogra

ms w

as

unde

rtak

en

Am

ount

out

lay

(bud

get)

proj

ect o

r pr

ogra

m w

ise

(` L

akhs

)

Am

ount

spen

t on

the

proj

ects

or

pro

gram

s Su

b-he

ads:

(1

) Dire

ct

expe

nditu

re

on p

roje

ct o

r pr

ogra

ms

(2) O

verh

eads

(`

Lak

hs)

Cum

ulati

ve

expe

nditu

re

up to

the

repo

rting

pe

riod

(`

Lak

hs)

Am

ount

Spe

nt:

Dire

ct o

r thr

ough

im

plem

entin

g ag

ency

Num

ber a

nd

Cate

gory

of

Pro

ject

Be

nefic

iarie

s

6.Su

ppor

t for

sm

art

clas

s ro

oms

at G

ovt.

UPSchoolNorth,

Ezhiprum

,Aluva

Cl.(ii)promoting

education

AluvaErnakulam

D

istric

t of K

eral

a St

ate

02.00

02.00

02.00

Governm

entU

PSchoolNorth

Ezhiprum

,Vazhakulam

G

ram

a Panchayat,

Ernakulam

200School

Children

7.Supportforkids

parkandcom

puter

labtoSree

NarayanaCentenary

Mem

orialLP

SchoolNeyyassery,

Thodupuzha,Idukki

Dist

rict.

Cl.(ii)promoting

education

Neyyassery,

Thodupuzha,

IdukkiDistrictof

Kera

la S

tate

04.20

02.10

02.10

SreeNarayana

Cent

enar

y Mem

orial

LPSchool,

Neyyassery,

Thodupuzha,

IdukkiDistrict

180School

Children

8.Fi

nanc

ial s

uppo

rt fo

r computerlabatSt.

Philomina’sHigher

SecondarySchool,

Koonam

mavu,

ErnakulamDistrict.

Cl.(ii)promoting

education

Koonam

mav,

Ernakulam

Dist

rict o

f Ker

ala

Stat

e

02.74

02.74

02.74

St.Philomina’s

HigherSecondary

School,Koonam-

mavu,Ernakulam

Dist

rict

600School

Children

9.Su

ppor

t for

computers,projector

andaprinterto

SNVLPSchool,

Thum

poly,Alappuzha.

Cl.(ii)promoting

education

Thum

poly,

Alappuzha

Dist

rict o

f Ker

ala

Stat

e

04.00

04.00

04.00

SNVLPSchool,

Thum

poly,

Alappuzha

Dist

rict

160School

Children

10.

Supportforlearning

cent

re a

t Gov

ernm

ent

LowerPrim

ary

School,BristoRoad,

WillingtonIslands.

Koch

i.

Cl.(ii)promoting

education

Willington

Islands.Kochi,

Ernakulam

Dist

rict o

f Ker

ala

Stat

e

02.00

02.00

02.00

LowerPrim

ary

School,

BristoRoad,

Willington

Islands.Kochi.

100School

Children


Sl.

No.

Nam

e of

Pro

ject

with

a

brie

f

Sect

or in

whi

ch

the

Proj

ect

is c

over

ed

(Cla

use

no. o

f Sc

hedu

le V

II to

Com

pani

es

Act,

2013

, as

amen

ded)

Proj

ects

or

Prog

ram

s (1)

Lo

cal a

rea

or

othe

r (2)

Spe

cify

th

e St

ate

and

dist

rict w

here

pr

ojec

ts o

r pr

ogra

ms w

as

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rtak

en

Am

ount

out

lay

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get)

proj

ect o

r pr

ogra

m w

ise

(` L

akhs

)

Am

ount

spen

t on

the

proj

ects

or

pro

gram

s Su

b-he

ads:

(1

) Dire

ct

expe

nditu

re

on p

roje

ct o

r pr

ogra

ms

(2) O

verh

eads

(`

Lak

hs)

Cum

ulati

ve

expe

nditu

re

up to

the

repo

rting

pe

riod

(`

Lak

hs)

Am

ount

Spe

nt:

Dire

ct o

r thr

ough

im

plem

entin

g ag

ency

Num

ber a

nd

Cate

gory

of

Pro

ject

Be

nefic

iarie

s

11.InstallationofSolar

System

atSri.Sarada

Math,Ravipuram

,Ko

chi

Cl.(iv)Ensuring

envi

ronm

enta

l sustainability

Ravipuram,

KochiErnakulam

D

istric

t of K

eral

a St

ate

09.44

09.44

09.44

Sri.SaradaMath,

Ravipuram,Kochi

50inmates

12.

Fina

ncia

l ass

istan

ce

to a

nnua

l sta

te m

eet

ofIndianAssociation

ofPalliativeCare

Kera

la

Cl.(i)prom

oting

heal

thErnakulam

Dist

rict o

f Ker

ala

Stat

e

01.00

01.00

01.00

Cons

ortiu

m

ofPainand

Palliative

CareUnitsin

Ernakulam

Dist

rict

2000

delegates

13.

Fina

ncia

l ass

istan

ce

to th

e pr

omot

ion

ofTheyyam

-A

traditional&cultural

art f

orm

s of

Ker

ala

Cl.(v)

Prom

otionand

developm

entof

traditionalarts

andhandicrafts

Thrippunithura,

Ernakulam

Dist

rict o

f Ker

ala

Stat

e

00.50

00.50

00.50

Thap

asya

SahithyaVedhi,

Thrip

unith

ura

2000art

loving

popu

latio

n

14.

Fina

ncia

l sup

port

for‘Puthuyugam

’–

A co

mpr

ehen

sive

educational

projectbydistrict

administration,

Ernakulam

Cl.(ii)promoting

education

includingspecial

Education

Ernakulam

Dist

rict o

f Ker

ala

Stat

e

09.36

09.36

09.36

DistrictC

ollector,

Ernakulam

200Student

aspi

rant

s

15.

Supp

ort f

or

establish

inga

smartclassroom

,co

nstr

uctio

n of

a

newkitchenand

re-roofingofthe

oldbuildingof

Govt.L.P.School,

Kaipam

angalam,

Thris

sur D

istric

t

Cl.(ii)promoting

education

Kaipam

angalam,

Thris

sur D

istric

t of

Ker

ala

Stat

e

06.50

06.50

06.50

Govt.L.P.School,

Kaipam

angalam,

Thris

sur D

istric

t

186School

Children


Sl.

No.

Nam

e of

Pro

ject

with

a

brie

f

Sect

or in

whi

ch

the

Proj

ect

is c

over

ed

(Cla

use

no. o

f Sc

hedu

le V

II to

Com

pani

es

Act,

2013

, as

amen

ded)

Proj

ects

or

Prog

ram

s (1)

Lo

cal a

rea

or

othe

r (2)

Spe

cify

th

e St

ate

and

dist

rict w

here

pr

ojec

ts o

r pr

ogra

ms w

as

unde

rtak

en

Am

ount

out

lay

(bud

get)

proj

ect o

r pr

ogra

m w

ise

(` L

akhs

)

Am

ount

spen

t on

the

proj

ects

or

pro

gram

s Su

b-he

ads:

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an a

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ala

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ad-

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mai

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Panampilly

Nagar,Ernaku-

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30.00

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15.00

Coch

in

Corp

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Around2000

visit

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t for

re

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cla

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room

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skilldevelopment

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backwardstudentsof

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,Ke

rala

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250Students

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GeneralProjects

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uppo

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enov

atio

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existingbuildings

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emorial

SeniorBasic

School,Kakkayur

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Thaluk,Palakkad

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rict

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education

Kakkayur

Village,Chittur

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e

12.00

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4.80

Devaki

Mem

orial

SeniorBasic

School,

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Palakkad

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380Students

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Co

mm

on F

acili

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Cent

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um

OfficeBuildingof

Chennamangalam

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Dev

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puram,

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Chen

nam

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orth

Paravoor,

Ernakulam

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e

20.00

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8.00

Chen

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Workers

Dev

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men

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e So

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education

CochinUniver-

sity

of S

cien

ce

&Technology

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Ernakulam

District,Kerala

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e

25.00

20.00

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Dep

artm

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of S

hip

Tech-

nology,Cochin

University

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Ernakulam

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e

100students

per y

ear

4.AnanthaKripa-

providingfree

accommodation

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finan

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ly c

hal-

lengedpatients

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ruva

nan-

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alth

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Ker

ala

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e

150.00

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Dist

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130by-

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Patients/per

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ease

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e

Cl.(ii)promoting

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D

istric

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Kera

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30.00

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6.35

Shre

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ati

Vila

sam

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Samajam

,Punchavayal,

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ayam

40Tribal

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6.Prom

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throughthe

cons

truc

tion

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ahostelbuilding

fortribalstudents

inKudayathoor,

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Cl.(ii)promoting

education

Kudayathur,

IdukkiDistrict

of K

eral

a St

ate

50.00

6.74

6.74

Sarasw

ati

Vidyanikethan

Secondary

School,

Kudayathoor

50TribalGirls

7.Fi

nanc

ial S

uppo

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Society)

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education

IdukkiDistrict

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eral

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ate

15.00

4.50

4.50

Confederation

ofIndian

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Kerala,Kochi

Chap

ter

30000school

students

8.Co

nstr

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n of

anewhospital

buildingforSwam

iVivekananda

MedicalMission,

Muttil,W

ayanad

Dist

rict

Cl.(i)prom

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healthcareincluding

prev

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e he

alth

Muttil,

Wayanad

District,Kerala

Stat

e

50.00

9.20

9.20

Vivekananda

Medical

Mission,

Muttil,

Wayanad

Dist

rict

100patients

perday

9.Su

pply

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scubasetsto

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Ernakulam

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healthcareincluding

prev

entiv

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alth

Fire&Rescue

Department,

Cent

ral

Division-

Ernakulam,

Kera

la S

tate

9.00

8.76

8.76

Fire&Rescue

Department,

Cent

ral

Division-

Ernakulam,

Kera

la S

tate

Vic

tims

of

waterrelated

accidents

10.

Fina

ncia

l sup

port

forSaukhyam

2017-Asuper

specialtymedical

camp,Ernakulam

Cl.(i)prom

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healthcareincluding

prev

entiv

e he

alth

Ernakulam

District,Kerala

Stat

e6.00

6.00

6.00

Hospital

Dev

elop

men

t Co

mmittee,

Gen

eral

Hospital,

Ernakulam

3000poor

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nts


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EntireStateof

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1.00

1.00

Ass

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for t

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Intellectually

Disabled(AID),

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2000disabled

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Prom

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ala

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Samskarika

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Edapally,

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e

7.30

3.65

3.65

Kathakali

Asw

adhaka

Sadhas,Chan-

gampuzha

Samskarika

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Fina

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erap

y equipm

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equipm

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AlphaPalliative

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CityLinkCentre,

Ernakulam

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healthcareincluding

prev

entiv

e he

alth

Palarivattom,

Ernakulam

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Stat

e

5.00

0.73

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AlphaPalliative

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12bedridden

patie

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ify th

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ate

and

dist

rict w

here

pr

ojec

ts o

r pr

ogra

ms w

as

unde

rtak

en

Am

ount

ou

tlay

(bud

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ect o

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(` L

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)

Am

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sp

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n th

e pr

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ts o

r pr

ogra

ms

Sub-

head

s:

(1) D

irect

ex

pend

iture

on

pro

ject

or

prog

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s (2)

O

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(`

Lak

hs)

Cum

ulati

ve

expe

nditu

re

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Dire

ct

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plem

entin

g ag

ency

Num

ber a

nd

Cate

gory

of

Pro

ject

Be

nefic

iarie

s

14.

Distributionof

freemedicine

(Insulin)toType1

DiabeticChildren

ofBPLFam

iliesin

ErnakulamDistrict

Cl.(i)prom

oting

healthcareincluding

prev

entiv

e he

alth

Alappuzha,

Kottayam

,Idukki,

Ernakulam

andThrissur

Dist

ricts

of

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la S

tate

9.50

0.96

0.96

Lourdes

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Ernakulam

66Type1

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Patients

Sub

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l (F)

389.

8010

5.69

105.

69In

dire

ct E

xpen

ses

Overhead/Ad

ministrativeexpenses

23.54

23.54

23.54

Sub

Tota

l (G

)23

.54

23.5

423

.54

Gra

nd To

tal (

A+B

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+G)

1513

.72

857.

0885

7.08


COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF COCHIN SHIPYARD LIMITED, FOR THE YEAR ENDED 31 MARCH 2018ThepreparationoffinancialstatementsofCochinShipyardLimitedfortheyearended31March2018inaccordancewiththefinancialreportingframeworkprescribedundertheCompaniesAct,2013(Act) istheresponsibilityofthemanagementoftheCompany.Thestatutoryauditorsappointedby theComptrollerandAuditorGeneralof Indiaundersection139(5)of theActareresponsibleforexpressingopiniononthefinancialstatementsundersection143oftheActbasedonindependentauditinaccordancewiththestandardsonauditingprescribedundersection143(10)oftheAct.ThisisstatedtohavebeendonebythemvidetheirAuditReportdated24May2018.I,onbehalfoftheComptrollerandAuditorGeneralofIndia,haveconductedasupplementaryauditundersection143(6)(a)oftheActofthefinancialstatementsofCochinShipyardLimitedfortheyearended31March2018.Thissupplementaryaudithasbeencarriedoutindependentlywithoutaccesstotheworkingpapersofthestatutoryauditorsandislimitedprimarilytoinquiriesofthestatutoryauditorsandcompanypersonnelandaselectiveexaminationofsomeoftheaccountingrecords.Onthebasisofmyauditnothingsignificanthascometomyknowledgewhichwouldgiverisetoanycommentuponorsupplementtostatutoryauditors’report.

ForandonthebehalfoftheComptroller & Auditor General of India

(R. AMBALAVANAN)Principal Director of Commercial Audit

and Ex-Officio Member, Audit Board, Chennai

Place:ChennaiDate:11July2018

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF COCHIN SHIPYARD LIMITED, FOR THE YEAR ENDED 31 MARCH 2018ThepreparationofconsolidatedfinancialstatementsofCochinShipyardLimitedfortheyearended31March2018inaccordancewiththefinancialreportingframeworkprescribedundertheCompaniesAct,2013(Act)istheresponsibilityofthemanagementoftheCompany.ThestatutoryauditorsappointedbytheComptrollerandAuditorGeneralofIndiaundersection139(5)readwithsection129(4)oftheActareresponsibleforexpressingopiniononthefinancialstatementsundersection143readwithsection129(4)oftheActbasedonindependentauditinaccordancewiththestandardsonauditingprescribedundersection143(10)oftheAct.ThisisstatedtohavebeendonebythemvidetheirAuditReportdated24May2018.I,onbehalfoftheComptrollerandAuditorGeneralofIndia,haveconductedasupplementaryauditundersection143(6)(a)readwithsection129(4)oftheActoftheconsolidatedfinancialstatementsofCochinShipyardLimitedfortheyearended31March2018.WeconductedasupplementaryauditofthefinancialstatementsofCochinShipyardLimitedandHooghlyCochinShipyardLimited for theyearendedonthatdate.Thissupplementaryaudithasbeencarriedout independentlywithoutaccess to theworkingpapersofthestatutoryauditorsandislimitedprimarilytoinquiriesofthestatutoryauditorsandcompanypersonnelandaselectiveexaminationofsomeoftheaccountingrecords.Onthebasisofmyauditnothingsignificanthascometomyknowledgewhichwouldgiverisetoanycommentuponorsupplementtostatutoryauditors’report.

ForandonthebehalfoftheComptroller & Auditor General of India

(R. AMBALAVANAN)Principal Director of Commercial Audit

and Ex-Officio Member, Audit Board, Chennai

Place:ChennaiDate:11July2018

Annexure-5


Annexure-6

FormNo.MR-3 SECRETARIALAUDITREPORT

FORTHEFINANCIALYEARENDED31.03.2018[PursuanttoSection204(1)oftheCompaniesAct,2013andRuleNo.9ofthe

Companies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]

ToTheMembersCochin Shipyard LimitedAdministrativeBuilding,39/6080CochinShipyardPremisesPerumanoor,M.G.RoadErnakulam,Kerala-682015We,SVJS&Associates,CompanySecretaries,haveconductedtheSecretarialAuditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyCochin Shipyard Limited [CIN: U63032KL1972GOI002414] (hereinaftercalled“theCompany”).SecretarialAuditwasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.BasedonourverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedby theCompanyandalso the informationprovidedby theCompany, itsofficers,agentsandauthorized representativesduringtheconductofSecretarialAudit,weherebyreportthat inouropinion,theCompanyhas,duringtheauditperiodcoveringthefinancialyearendedon31stMarch2018compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoardprocessesandcompliancemechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:Wehaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedon31stMarch2018accordingtotheprovisionsof:(i) TheCompaniesAct,2013(theAct)andtheRulesmadethereunder;(ii) TheSecuritiesContracts(Regulation)Act,1956(SCRA)andtheRulesmadethereunder;(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;(iv) TheForeignExchangeManagementAct,1999andtheRulesandRegulationsmadethereundertotheextentofForeign

DirectInvestment,OverseasDirectInvestmentandExternalCommercialBorrowings;(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992:-

(a) SecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009;(b) SecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;(c) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;(d) TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993

regardingtheCompaniesActanddealingwithclient;(e) TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.

(vi) Asinformedtous,thefollowingotherlawsarespecificallyapplicabletotheCompany:1. TheFactoriesAct,1948;2. TheEnvironment(Protection)Act,1986;3. TheWater(PreventionandControlofPollution)Act,1974;4. TheAir(PreventionandControlofPollution)Act,1981;5. HazardousWastes(Management,HandlingandTransboundaryMovement)Rules,2008;


6. TheElectricityAct,2003andCentralElectricityRegulations2010;7. GuidelinesonCorporateGovernanceforCentralPublicSectorEnterprises,2010;8. GuidelinesonCorporateSocialResponsibilityandSustainabilityforCentralPublicSectorEnterprises.

Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:(i) SecretarialStandardsrelatingtoBoard(SS1)andGeneralMeetings(SS2)issuedbyTheInstituteofCompanySecretaries

ofIndia;(ii) TheListingAgreementsentered intoby theCompanywithBSELimitedand theNationalStockExchangeof India

Limited.DuringtheperiodunderreviewtheCompanyhascompliedwiththeprovisionsoftheActs,Rules,Regulations,Guidelines,etc.mentionedabove.InrespectofotherlawsspecificallyapplicabletotheCompanywehavereliedoninformation/recordsproducedbytheCompanyduringthecourseofourauditandthereportingislimitedtothatextent.We report that:TheBoardofDirectorsof theCompany is duly constitutedwithproperbalanceofExecutiveDirectors,Non-executiveDirectorsandIndependentDirectors.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheActandincompliancewithordersissuedbythe Central Government.AdequatenoticesweregiventoalldirectorstoscheduletheBoardMeetings,Agendaanddetailednotesonagendaweresentatleastsevendaysinadvanceandasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.AlldecisionsoftheBoardwereunanimousandthesamewascapturedandrecordedaspartoftheminutes.We further report that there are adequate systems and processes in the Company commensurate with the size andoperationsoftheCompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.We further report that duringtheauditperiod:1. TheCompanyhasraisedRs.1,442croresthroughInitialPublicOffer(IPO)whichwasacombinationoffreshissueof

22,656,000equitysharesandofferforsaleof11,328,000equitysharesandtherespectiveallotmentofthesecuritieswascompletedon09thAugust,2017.

2. TheCompanyhasformedaJointVenturewithHooghlyDock&PortEngineeringLimitedviz.HooghlyCochinShipyardLimitedon23rdOctober2017withatotalstakeof74%intheJointVenture.

We further report thatduringtheauditperiodtherewerenoinstancesof:i. Right/Preferentialissueofshares/debentures/sweatequity;ii. Redemption/buy-backofsecurities;iii. MajordecisionstakenbythemembersinpursuancetoSection180oftheAct;iv. Merger/amalgamation/reconstructionetc.;v. Foreigntechnicalcollaborations.

ThisReportistobereadwithourletterofevendatewhichisannexedas‘Annexure A’andformsanintegralpartofthisReport.

For SVJS & AssociatesCompany Secretaries

P. SivakumarManagingPartner

CP.No.2210

Kochi30.06.2018


ToTheMembersCochin Shipyard LimitedAdministrativeBuilding,39/6080CochinShipyardPremisesPerumanoor,M.G.RoadErnakulam,Kerala-682015

OurSecretarialAuditReportofevendateistobereadalongwiththisletter.

1. MaintenanceoftheSecretarialrecordsistheresponsibilityofthemanagementoftheCompany.OurresponsibilityasSecretarialAuditorsistoexpressanopinionontheserecords,basedonouraudit.

2. Duringtheaudit,wehavefollowedthepracticesandprocessaswereappropriate, toobtainreasonableassuranceaboutthecorrectnessofthecontentsoftheSecretarialrecords.WebelievethattheprocessandpracticeswefollowedprovideareasonablebasisforourReport.

3. ThecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsoftheCompanyhavenotbeenverified.

4. Wherever required, we have obtained the Management representation about the Compliance of laws, rules andregulationsandhappeningofeventsetc.

5. The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards etc. is theresponsibilityofmanagement.Ourexaminationislimitedtotheverificationoftheproceduresandcompliancesontestbasis.

6. WhileforminganopiniononcomplianceandissuingtheSecretarialAuditReport,wehavealsotakenintoconsiderationthecompliancerelatedactionstakenbytheCompanyafter31stMarch2018butbeforeissueoftheReport.

7. WehaveconsideredactionscarriedoutbytheCompanybasedonindependentlegal/professionalopinionasbeingincompliancewithlaw,wherevertherewasscopeformultipleinterpretations.

For SVJS & AssociatesCompany Secretaries

P. SivakumarManagingPartner

CP.No.2210

Kochi30.06.2018

Annexure A


Annexure-7

EXTRACTOFANNUALRETURNAsonfinancialyearendedon31.03.2018

PursuanttoSection92(3)oftheCompaniesAct,2013andRule12(1)oftheCompanies (Management&Administration)Rules,2014.

I. REGISTRATION & OTHER DETAILS:

1. CIN U63032KL1972GOI0024142. RegistrationDate March29,19723. NameoftheCompany CochinShipyardLtd4. Category/Sub-categoryoftheCompany PublicCompany/LimitedbyShares5. AddressoftheRegisteredoffice&contactdetails AdministrativeBuilding,

CochinShipyardPremises,PerumanoorCochin,Ernakulam–682015,Kerala,India.Ph:+91484-2501307Fax:+91484-2384001e-mail:[email protected]:www.cochinshipyard.com

6. Whetherlistedcompany Yes 7. Name,Address&contactdetailsoftheRegistrar&

TransferAgent,ifany.LinkIntimeIndiaPvt.LtdSurya,35,MayflowerAvenue,BehindSenthilNagar,SowripalayamRoad,Coimbatore,TamilNadu,641028Phone:+914222314792,2315792Fax:+914222314792E-mail:[email protected]:www.linkintime.co.in

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (All the business activities contributing 10 % or more of the total turnover of the company shall be stated)

Sl. No. Name and Description of main products / services

NIC Code of the Product/service

% to total turnover of the Company

1 BuildingofShips&FloatingStructures 3011 73.362 SpecialisedRepairandmaintenanceof

shipsandfloatingstructures 3315 26.46

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sl. No. Name and Address of the Company CIN/GLN

Holding/Subsidiary/Associate

% of shares held

Applicable Section

1 HOOGHLYCOCHINSHIPYARDLIMITEDTheLegacy,25AShakespeareSarani,Level1Kolkata-700017

U35900WB2017GOI223197 Subsidiary 74 2(87)


IV.

SHA

RE H

OLD

ING

PAT

TERN

(Equ

ity S

hare

Cap

ital B

reak

up a

s per

cent

age

of To

tal E

quity

)

(i)

Cate

gory

-wis

e Sh

are

Hol

ding

Sl

No

Cate

gory

of

Shar

ehol

ders

Shar

ehol

ding

at t

he

begi

nnin

g of

the

year

- 01

.04.

2017

Shar

ehol

ding

at t

he

end

of th

e ye

ar -

31.0

3.20

18%

Cha

nge

durin

g th

e ye

ar

Dem

atPh

ysic

alTo

tal

% o

fTo

tal

Shar

esD

emat

Ph

ysic

al

Tota

l %

of

Tota

l Sh

ares

(A)

ShareholdingofPromoterand

Prom

oterGroup

[1]

Indian

(a)

Individuals/HinduUndivided

Fam

ily0

00

0.0000

00

00.0000

0.0000

(b)

CentralG

overnm

ent/State

Governm

ent(s)

0113280000

113280000

100.0000

101951700

300

101952000

75.0000

-25.0000

(c)

FinancialInstitutions/Banks

00

00.0000

00

00.0000

0.0000

(d)

AnyOther(Specify)

SubTotal(A)(1)

0113280000

113280000

100.0000

101951700

300

101952000

75.0000

-25.0000

[2]

Foreign

(a)

Individuals(Non-Resident

Individuals/ForeignIndividuals)

00

00.0000

00

00.0000

0.0000

(b)

Gov

ernm

ent

00

00.0000

00

00.0000

0.0000

(c)

Institutions

00

00.0000

00

00.0000

0.0000

(d)

ForeignPortfolioInvestor

00

00.0000

00

00.0000

0.0000

(e)

AnyOther(Specify)

SubTotal(A)(2)

00

00.0000

00

00.0000

0.0000

TotalShareholdingofPromoter

andProm

oterGroup

(A)=(A)(1)+(A)(2)

0113280000

113280000

100.0000

101951700

300

101952000

75.0000

-25.0000

(B)

PublicShareholding

[1]

Institutions

(a)

MutualFunds/UTI

00

00.0000

13983664

013983664

10.2869

10.2869

(b)

VentureCapitalFunds

00

00.0000

00

00.0000

0.0000

(c)

AlternateInvestmentFunds

00

00.0000

00

00.0000

0.0000

(d)

ForeignVentureCapitalInvestors

00

00.0000

00

00.0000

0.0000

(e)


00

00.0000

4697022

04697022

3.4553

3.4553

(f)FinancialInstitutions/Banks

00

00.0000

1129302

01129302

0.8308

0.8308


Sl

No

Cate

gory

of

Shar

ehol

ders

Shar

ehol

ding

at t

he

begi

nnin

g of

the

year

- 01

.04.

2017

Shar

ehol

ding

at t

he

end

of th

e ye

ar -

31.0

3.20

18%

Cha

nge

durin

g th

e ye

ar

Dem

atPh

ysic

alTo

tal

% o

fTo

tal

Shar

esD

emat

Ph

ysic

al

Tota

l %

of

Tota

l Sh

ares

(g)

InsuranceCo

mpanies

00

00.0000

00

00.0000

0.0000

(h)

ProvidentFunds/PensionFunds

00

00.0000

00

00.0000

0.0000

(i)AnyOther(Specify)

SubTotal(B)(1)

00

00.0000

19809988

019809988

14.5730

14.5730

[2]

CentralG

overnm

ent/State

Governm

ent(s)/Presid

entofIndia

SubTotal(B)(2)

00

00.0000

00

00.0000

0.0000

[3]

Non-Institutions

(a)

Individuals

(i)Individualshareholdersholding

nom

inal

sha

re c

apita

l upt

o Rs

. 1

lakh.

00

00.0000

9133659

79133666

6.7191

6.7191

(ii)

Individualshareholdersholding

nominalsharecapitalinexcessof

Rs.1lakh

00

00.0000

1587365

01587365

1.1677

1.1677

(b)

NBF

CsregisteredwithRBI

00

00.0000

00

00.0000

0.0000

(c)

EmployeeTrusts

00

00.0000

00

00.0000

0.0000

(d)

OverseasDepositories(holding

DRs)(balancingfigure)

00

00.0000

00

00.0000

0.0000

(e)

AnyOther(Specify)

Tr

usts

00

00.0000

12987

012987

0.0096

0.0096

HinduUndividedFam

ily0

00

0.0000

504360

0504360

0.3710

0.3710

NonResidentIndians(N

onRepat)

00

00.0000

127654

0127654

0.0939

0.0939

NonResidentIndians(Repat)

00

00.0000

541373

0541373

0.3983

0.3983


(Individual)

00

00.0000

900

0900

0.0007

0.0007

ClearingMem

ber

00

00.0000

382424

0382424

0.2813

0.2813

Bo

diesCorporate

00

00.0000

1883283

01883283

1.3854

1.3854

SubTotal(B)(3)

00

00.0000

14174005

714174012

10.4270

10.4270

TotalPublicShareholding(B)=(B)

(1)+(B)(2)+(B)(3)

00

00.0000

33983993

733984000

25.0000

25.0000

Total(A)+(B)

0113280000

113280000

100.0000

135935693

307

135936000

100.0000

0.0000


Sl

No

Cate

gory

of

Shar

ehol

ders

Shar

ehol

ding

at t

he

begi

nnin

g of

the

year

- 01

.04.

2017

Shar

ehol

ding

at t

he

end

of th

e ye

ar -

31.0

3.20

18%

Cha

nge

durin

g th

e ye

ar

Dem

atPh

ysic

alTo

tal

% o

fTo

tal

Shar

esD

emat

Ph

ysic

al

Tota

l %

of

Tota

l Sh

ares

(C)

NonPromoter-NonPublic

[1]

Custodian/DRHolder

00

00.0000

00

00.0000

0.0000

[2]

EmployeeBenefitTrust(under

SEBI(SharebasedEmployee

Benefit)Regulations,2014)

00

00.0000

00

00.0000

0.0000

Total(A)+(B)+(C)

0113280000

113280000

100.0000

135935693

307

135936000

100.0000

0.0000

(ii)

Shar

ehol

ding

of P

rom

oter

s

Sl

No

Shar

ehol

der’s

Nam

e

Shar

ehol

ding

at t

he

begi

nnin

g of

the

year

- 01

.04.

2017

Shar

ehol

ding

at t

he

end

of th

e ye

ar -

31.0

3.20

18

No.

of

shar

es h

eld

% o

f tot

al

Shar

es

of th

e co

mpa

ny

% o

f Sha

res

Pled

ged

/en

cum

bere

d to

to

tal s

hare

s

No.

of

shar

es h

eld

% o

f tot

al

Shar

es

of th

e co

mpa

ny

% o

f Sha

res

Pled

ged/

en

cum

bere

d to

tota

l sha

res

% c

hang

e in

sh

areh

oldi

ng

durin

g th

e ye

ar

1TH

EPR

ESIDEN

TOF

INDIA

113279700

99.9997

0.0000

101952000

75.0000

0.0000

-24.9997

2BA

RUNMITRA

100

0.0001

0.0000

00.0000

0.0000

-0.0001

3MADHUSNAIR

100

0.0001

0.0000

00.0000

0.0000

-0.0001

4DPAU

LRA

NJAN

700.0001

0.0000

00.0000

0.0000

-0.0001

5PR

ADEEPKU

MARRO

Y10

0.0000

0.0000

00.0000

0.0000

0.0000

6SU

NNYTH

OMAS

100.0000

0.0000

00.0000

0.0000

0.0000

7SU

RESH

BABU

NV

100.0000

0.0000

00.0000

0.0000

0.0000

To

tal

1132

8000

010

0.00

000.

0000

1019

5200

075

.000

00.

0000

-25.

0000


(iii)

Chan

ge in

Pro

mot

ers’

Shar

ehol

ding

(ple

ase

spec

ify, i

f the

re is

no

chan

ge)

Sl.

No.

Nam

e of

the

Shar

ehol

der

Shar

ehol

ding

at t

he

begi

nnin

g of

the

ye

ar -

01.0

4.20

17D

ate

Reas

on

Incr

ease

/Dec

reas

e in

sh

areh

oldi

ngCu

mul

ative

Sha

reho

ldin

g du

ring

the

year

- 31

.03.

2018

No.

of s

hare

s

% o

f tot

al

shar

es

of th

e Co

mpa

ny

No.

of s

hare

s%

of t

otal

sh

ares

of t

he

Com

pany

No.

of s

hare

s%

of t

otal

sh

ares

of t

he

Com

pany

1.ThePresident

ofIndia

11,32,79,700

99.99

11

August,

2017

Sale

of

Shar

es(1,13,28,000)

(10.00)

10,19,51,700

74.99

2.ThePresident

ofIndia

11,32,79,700

99.99

08

January

2018

Tran

sfer

fr

om th

e Nom

inee

Shareholders

300

0.00

10,19,52,000

75.00

(iv)

Shar

ehol

ding

Patt

ern

of to

p te

n Sh

areh

olde

rs: (

Oth

er th

an D

irect

ors,

Prom

oter

s and

Hol

ders

of G

DRs

and

AD

Rs)

Sl

No.

Nam

e &

Typ

e of

Tra

nsac

tion

Shar

ehol

ding

at t

he b

egin

ning

of

the

year

- 01

.04.

2017

Tran

sacti

ons d

urin

g th

e ye

arCu

mul

ative

Sha

reho

ldin

g at

the

end

of th

e ye

ar -

31.0

3.20

18

No.

of sh

ares

he

ld

% o

f tot

al

shar

es o

f the

co

mpa

ny

Dat

e of

tr

ansa

ction

No.

of s

hare

sN

o of

shar

es

held

% o

f tot

al

shar

es o

f the

co

mpa

ny1

RELIANCE

CAPITALTR

USTEE

CO.LTD

.-A/CRELIANCE

TAX

SAVER(ELSS)FUND

00.0000

00.0000

Tr

ansf

er

11Aug2017

192088

192088

0.1413

Tr

ansf

er

18Aug2017

5313165

5505253

4.0499

Tr

ansf

er

25Aug2017

1469600

6974853

5.1310

Tr

ansf

er

01Sep2017

14500

6989353

5.1416

Tr

ansf

er

26Jan2018

90000

7079353

5.2079

Tr

ansf

er

23Feb2018

2600

7081953

5.2098

Tr

ansf

er

02Mar2018

22400

7104353

5.2262

ATTHEEN

DOFTH

EYEAR

7104353

5.2262

2HDFC

TRU

STEECOMPA

NY

LIMITED

-HDFC

PRU

DEN

CE

FUND

00.0000

00.0000

Tr

ansf

er

11Aug2017

271308

271308

0.1996

Tr

ansf

er

18Aug2017

1550000

1821308

1.3398

Tr

ansf

er

08Sep2017

242258

2063566

1.5180


Sl

No.

Nam

e &

Typ

e of

Tra

nsac

tion

Shar

ehol

ding

at t

he b

egin

ning

of

the

year

- 01

.04.

2017

Tran

sacti

ons d

urin

g th

e ye

arCu

mul

ative

Sha

reho

ldin

g at

the

end

of th

e ye

ar -

31.0

3.20

18

No.

of sh

ares

he

ld

% o

f tot

al

shar

es o

f the

co

mpa

ny

Dat

e of

tr

ansa

ction

No.

of s

hare

sN

o of

shar

es

held

% o

f tot

al

shar

es o

f the

co

mpa

ny

Tran

sfer

15Sep2017

114400

2177966

1.6022

Tr

ansf

er

29Sep2017

(4647)

2173319

1.5988

Tr

ansf

er

27Oct2017

267000

2440319

1.7952

Tr

ansf

er

17Nov2017

100000

2540319

1.8688

Tr

ansf

er

24Nov2017

134000

2674319

1.9673

Tr

ansf

er

08Dec2017

157000

2831319

2.0828

Tr

ansf

er

15Dec2017

71000

2902319

2.1351

Tr

ansf

er

29Dec2017

27000

2929319

2.1549

Tr

ansf

er

05Jan2018

100000

3029319

2.2285

Tr

ansf

er

19Jan2018

50000

3079319

2.2653

Tr

ansf

er

02Mar2018

54000

3133319

2.3050

ATTHEEN

DOFTH

EYEAR

3133319

2.3050

3PINEB

RIDGEGLO

BAL

FUNDS-P

INEB

RIDGEINDIA

EQUITYFU

ND

00.0000

00.0000

Tr

ansf

er

18Aug2017

616367

616367

0.4534

Tr

ansf

er

25Aug2017

345625

961992

0.7077

Tr

ansf

er

01Sep2017

158115

1120107

0.8240

Tr

ansf

er

22Sep2017

8269

1128376

0.8301

Tr

ansf

er

29Sep2017

1107210

2235586

1.6446

Tr

ansf

er

06Oct2017

423714

2659300

1.9563

Tr

ansf

er

13Oct2017

55249

2714549

1.9969

ATTHEEN

DOFTH

EYEAR

2714549

1.9969

4PA

RVESTEQ

UITYINDIA

00.0000

00.0000

Tr

ansf

er

15Sep2017

134000

134000

0.0986

Tr

ansf

er

22Sep2017

125388

259388

0.1908

Tr

ansf

er

29Sep2017

50283

309671

0.2278

Tr

ansf

er

06Oct2017

191000

500671

0.3683

Tr

ansf

er

13Oct2017

217481

718152

0.5283

Tr

ansf

er

27Oct2017

111348

829500

0.6102

Tr

ansf

er

03Nov2017

40000

869500

0.6396

ATTHEEN

DOFTH

EYEAR

869500

0.6396


Sl

No.

Nam

e &

Typ

e of

Tra

nsac

tion

Shar

ehol

ding

at t

he b

egin

ning

of

the

year

- 01

.04.

2017

Tran

sacti

ons d

urin

g th

e ye

arCu

mul

ative

Sha

reho

ldin

g at

the

end

of th

e ye

ar -

31.0

3.20

18

No.

of sh

ares

he

ld

% o

f tot

al

shar

es o

f the

co

mpa

ny

Dat

e of

tr

ansa

ction

No.

of s

hare

sN

o of

shar

es

held

% o

f tot

al

shar

es o

f the

co

mpa

ny5

ITPL-INVESCO

INDIA

CONTR

AFU

ND

00.0000

00.0000

Tr

ansf

er

11Aug2017

18348

18348

0.0135

Tr

ansf

er

25Aug2017

59867

78215

0.0575

Tr

ansf

er

01Sep2017

201460

279675

0.2057

Tr

ansf

er

08Sep2017

81308

360983

0.2656

Tr

ansf

er

13Oct2017

187541

548524

0.4035

Tr

ansf

er

27Oct2017

65635

614159

0.4518

Tr

ansf

er

22Dec2017

7575

621734

0.4574

Tr

ansf

er

05Jan2018

35555

657289

0.4835

Tr

ansf

er

12Jan2018

63661

720950

0.5304

Tr

ansf

er

26Jan2018

26420

747370

0.5498

Tr

ansf

er

31Mar2018

115331

862701

0.6346

ATTHEEN

DOFTH

EYEAR

862701

0.6346

6ADITYABIRLASUNLIFE

TRUSTEEPRIVA

TELIM

ITED

A/CADITYABIRLASUNLIFE

SMALLANDMIDCA

PFU

ND

00.0000

00.0000

Tr

ansf

er

11Aug2017

300810

300810

0.2213

Tr

ansf

er

25Aug2017

(136731)

164079

0.1207

Tr

ansf

er

01Sep2017

(53786)

110293

0.0811

Tr

ansf

er

22Sep2017

(25568)

84725

0.0623

Tr

ansf

er

06Oct2017

(19779)

64946

0.0478

Tr

ansf

er

22Dec2017

(17091)

47855

0.0352

Tr

ansf

er

02Mar2018

310986

358841

0.2640

Tr

ansf

er

09Mar2018

149014

507855

0.3736

Tr

ansf

er

16Mar2018

40000

547855

0.4030

Tr

ansf

er

23Mar2018

200000

747855

0.5502

ATTHEEN

DOFTH

EYEAR

747855

0.5502

7IDFC

INFRASTRU

CTURE

FUND

00.0000

00.0000

Tr

ansf

er

11Aug2017

94451

94451

0.0695


Sl

No.

Nam

e &

Typ

e of

Tra

nsac

tion

Shar

ehol

ding

at t

he b

egin

ning

of

the

year

- 01

.04.

2017

Tran

sacti

ons d

urin

g th

e ye

arCu

mul

ative

Sha

reho

ldin

g at

the

end

of th

e ye

ar -

31.0

3.20

18

No.

of sh

ares

he

ld

% o

f tot

al

shar

es o

f the

co

mpa

ny

Dat

e of

tr

ansa

ction

No.

of s

hare

sN

o of

shar

es

held

% o

f tot

al

shar

es o

f the

co

mpa

ny

Tran

sfer

18Aug2017

220636

315087

0.2318

Tr

ansf

er

25Aug2017

(6249)

308838

0.2272

Tr

ansf

er

01Sep2017

5741

314579

0.2314

Tr

ansf

er

15Sep2017

(1579)

313000

0.2303

Tr

ansf

er

22Sep2017

(13000)

300000

0.2207

Tr

ansf

er

01Dec2017

45000

345000

0.2538

Tr

ansf

er

08Dec2017

90000

435000

0.3200

Tr

ansf

er

15Dec2017

18347

453347

0.3335

Tr

ansf

er

29Dec2017

47230

500577

0.3682

Tr

ansf

er

05Jan2018

108423

609000

0.4480

Tr

ansf

er

19Jan2018

32000

641000

0.4715

Tr

ansf

er

26Jan2018

16348

657348

0.4836

Tr

ansf

er

09Feb2018

9000

666348

0.4902

Tr

ansf

er

16Mar2018

25000

691348

0.5086

ATTHEEN

DOFTH

EYEAR

691348

0.5086

8MIRAEASSETIN

DIAEQUITY

FUND

00.0000

00.0000

Tr

ansf

er

11Aug2017

46102

46102

0.0339

Tr

ansf

er

18Aug2017

1500445

1546547

1.1377

Tr

ansf

er

01Sep2017

164000

1710547

1.2583

Tr

ansf

er

08Sep2017

4000

1714547

1.2613

Tr

ansf

er

10Nov2017

(255724)

1458823

1.0732

Tr

ansf

er

17Nov2017

(66078)

1392745

1.0246

Tr

ansf

er

24Nov2017

(206900)

1185845

0.8724

Tr

ansf

er

01Dec2017

(42842)

1143003

0.8408

Tr

ansf

er

08Dec2017

(6934)

1136069

0.8357

Tr

ansf

er

22Dec2017

(11213)

1124856

0.8275

Tr

ansf

er

05Jan2018

(26982)

1097874

0.8076

Tr

ansf

er

19Jan2018

(118369)

979505

0.7206

Tr

ansf

er

26Jan2018

(128696)

850809

0.6259

Tr

ansf

er

02Feb2018

(127047)

723762

0.5324


Sl

No.

Nam

e &

Typ

e of

Tra

nsac

tion

Shar

ehol

ding

at t

he b

egin

ning

of

the

year

- 01

.04.

2017

Tran

sacti

ons d

urin

g th

e ye

arCu

mul

ative

Sha

reho

ldin

g at

the

end

of th

e ye

ar -

31.0

3.20

18

No.

of sh

ares

he

ld

% o

f tot

al

shar

es o

f the

co

mpa

ny

Dat

e of

tr

ansa

ction

No.

of s

hare

sN

o of

shar

es

held

% o

f tot

al

shar

es o

f the

co

mpa

ny

Tran

sfer

09Feb2018

(25772)

697990

0.5135

Tr

ansf

er

16Feb2018

(117281)

580709

0.4272

Tr

ansf

er

23Feb2018

(20221)

560488

0.4123

ATTHEEN

DOFTH

EYEAR

560488

0.4123

9STATEBA

NKOFINDIA

00.0000

00.0000

Tr

ansf

er

11Aug2017

495090

495090

0.3642

Tr

ansf

er

18Aug2017

(323065)

172025

0.1265

Tr

ansf

er

25Aug2017

(150000)

22025

0.0162

Tr

ansf

er

01Sep2017

(22025)

00.0000

Tr

ansf

er

08Sep2017

8000

8000

0.0059

Tr

ansf

er

15Sep2017

4000

12000

0.0088

Tr

ansf

er

22Sep2017

70200

82200

0.0605

Tr

ansf

er

29Sep2017

69000

151200

0.1112

Tr

ansf

er

06Oct2017

20000

171200

0.1259

Tr

ansf

er

13Oct2017

(20000)

151200

0.1112

Tr

ansf

er

20Oct2017

(18000)

133200

0.0980

Tr

ansf

er

27Oct2017

54000

187200

0.1377

Tr

ansf

er

03Nov2017

19000

206200

0.1517

Tr

ansf

er

10Nov2017

63000

269200

0.1980

Tr

ansf

er

17Nov2017

36000

305200

0.2245

Tr

ansf

er

24Nov2017

12000

317200

0.2333

Tr

ansf

er

01Dec2017

(25000)

292200

0.2150

Tr

ansf

er

08Dec2017

29000

321200

0.2363

Tr

ansf

er

15Dec2017

25449

346649

0.2550

Tr

ansf

er

22Dec2017

15882

362531

0.2667

Tr

ansf

er

05Jan2018

(15295)

347236

0.2554

Tr

ansf

er

12Jan2018

10000

357236

0.2628

Tr

ansf

er

19Jan2018

(13350)

343886

0.2530

Tr

ansf

er

26Jan2018

1801

345687

0.2543

Tr

ansf

er

02Feb2018

8199

353886

0.2603

Tr

ansf

er

09Feb2018

(6086)

347800

0.2559


Sl

No.

Nam

e &

Typ

e of

Tra

nsac

tion

Shar

ehol

ding

at t

he b

egin

ning

of

the

year

- 01

.04.

2017

Tran

sacti

ons d

urin

g th

e ye

arCu

mul

ative

Sha

reho

ldin

g at

the

end

of th

e ye

ar -

31.0

3.20

18

No.

of sh

ares

he

ld

% o

f tot

al

shar

es o

f the

co

mpa

ny

Dat

e of

tr

ansa

ction

No.

of s

hare

sN

o of

shar

es

held

% o

f tot

al

shar

es o

f the

co

mpa

ny

Tran

sfer

23Feb2018

20000

367800

0.2706

Tr

ansf

er

31Mar2018

(8000)

359800

0.2647

ATTHEEN

DOFTH

EYEAR

359800

0.2647

10MAHINDRA

UNNATI

EMERGINGBUSINESS

YOJANA

00.0000

00.0000

Tr

ansf

er

19Jan2018

127743

127743

0.0940

Tr

ansf

er

26Jan2018

76022

203765

0.1499

Tr

ansf

er

02Feb2018

103037

306802

0.2257

Tr

ansf

er

09Feb2018

17000

323802

0.2382

Tr

ansf

er

02Mar2018

2100

325902

0.2397

Tr

ansf

er

09Mar2018

16669

342571

0.2520

Tr

ansf

er

23Mar2018

9600

352171

0.2591

ATTHEEN

DOFTH

EYEAR

352171

0.2591

Not

e:

1.PaidupShareCapitaloftheCom

pany(FaceValue

`10.00)attheendoftheyearis13,59,36,000Shares.

2.ThedetailsofholdinghasbeenclubbedbasedonPAN.

3.%oftotalSharesoftheCo

mpanyisbasedonthepaidupCapitaloftheCom

panyattheendoftheYear.

(v)

Shar

ehol

ding

of D

irect

ors a

nd K

ey M

anag

eria

l Per

sonn

el

Sl

No.

Nam

e &

Typ

e of

Tra

nsac

tion

Shar

ehol

ding

at t

he

begi

nnin

g of

the

year

- 01

.04.

2017

Tran

sacti

ons d

urin

g th

e ye

arCu

mul

ative

Sha

reho

ldin

g at

the

end

of th

e ye

ar -

31.0

3.20

18N

o.of

sh

ares

he

ld

% o

f tot

al sh

ares

of

the

com

pany

Dat

e of

tran

sacti

onN

o. o

f sh

ares

No

of

shar

es

held

% o

f tot

al sh

ares

of

the

com

pany

1BA

RUNMITRA

100

0.0001

Tran

sfer

15Jun2017

(100)

00.0000

ATTHEEN

DOFTH

EYEAR

00.0000

2MADHUSNAIR

100

0.0001

Tr

ansf

er

08Jan2018

(100)

00.0000

ATTHEEN

DOFTH

EYEAR

00.0000

3DPAU

LRA

NJAN

700.0001


Sl

No.

Nam

e &

Typ

e of

Tra

nsac

tion

Shar

ehol

ding

at t

he

begi

nnin

g of

the

year

- 01

.04.

2017

Tran

sacti

ons d

urin

g th

e ye

arCu

mul

ative

Sha

reho

ldin

g at

the

end

of th

e ye

ar -

31.0

3.20

18N

o.of

sh

ares

he

ld

% o

f tot

al sh

ares

of

the

com

pany

Dat

e of

tran

sacti

onN

o. o

f sh

ares

No

of

shar

es

held

% o

f tot

al sh

ares

of

the

com

pany

Tr

ansf

er

08Jan2018

(70)

00.0000

ATTHEEN

DOFTH

EYEAR

00.0000

4SU

NNYTH

OMAS

100.0000

Tr

ansf

er

08Jan2018

(10)

00.0000

ATTHEEN

DOFTH

EYEAR

00.0000

5SU

RESH

BABU

NV

100.0000

Tr

ansf

er

08Jan2018

(10)

00.0000

ATTHEEN

DOFTH

EYEAR

00.0000

6PR

AVIRKRISH

NA

00.0000

Tr

ansf

er

15Jun2017

100

100

0.0001

Tr

ansf

er

08Jan2018

(100)

00.0000

ATTHEEN

DOFTH

EYEAR

00.0000

7RA

DHAKR

ISHNAMEN

ON

00.0000

11Aug2017

3030

0.0000

8KR

ISHNADASE

00.0000

18Aug2017

100

100

0.0001

Not

e:1.PaidupShareCapitaloftheCom

pany(FaceValue

`10.00)attheendoftheyearis13,59,36,000Shares.

2.ThedetailsofholdinghasbeenclubbedbasedonPAN.

(V)

IND

EBTE

DN

ESS -IndebtednessoftheCo

mpanyincludinginterestoutstanding/accruedbutnotdueforpayment.

(`InCrore)

Se

cure

d Lo

ans

excl

udin

g de

posi

tsU

nsec

ured

Lo

ans

Dep

osits

Tota

l In

debt

edne

ssIn

debt

edne

ss a

t the

beg

inni

ng o

f the

fina

ncia

l yea

r

i)PrincipalAmount

123.00

--

123.00

ii)Interestduebutnotpaid

--

--

iii)Interestaccruedbutnotdue

2.82

--

2.82

Tota

l (i+

ii+iii

)12

5.82

--

125.

82Ch

ange

in In

debt

edne

ss d

urin

g th

e fin

anci

al y

ear

Addition

--

--

Reduction

--

--

Net

Cha

nge

--

--

Inde

bted

ness

at t

he e

nd o

f the

fina

ncia

l yea

ri)PrincipalAmount

123.00

--

123.00

ii)Interestduebutnotpaid

--

--

iii)Interestaccruedbutnotdue

2.82

--

2.82

Tota

l (i+

ii+iii

)12

5.82

--

125.

82


(VI)

REM

UN

ERAT

ION

OF

DIR

ECTO

RS A

ND

KEY

MA

NAG

ERIA

L PE

RSO

NN

EL

(A) Rem

unerationtoManagingDirector,W

hole-timeDirectorsand/orManager

(In`)

Sl.

No.

Parti

cula

rs o

f Rem

uner

ation

Nam

e of

MD

/WTD

/ M

anag

er

Tota

l Am

ount

Shri

Mad

hu S

N

air,

Chai

rman

&

Man

agin

g D

irect

or (D

IN:

0737

6798

)

Shri

D P

aul

Ranj

an, D

irect

or

(Fin

ance

) &

CFO

(DIN

: 06

8694

52)

Shri

Sunn

y Th

omas

, D

irect

or

(Tec

hnic

al) (

DIN

: 06

8822

28)

Shri

Sure

sh B

abu

N V

, Dire

ctor

(O

pera

tions

) (D

IN: 0

7482

491)

1.G

ross

Sal

ary

3370458.40

3414367.50

4440852.69

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DIN:07376798

Place:Kochi

Date:June30,2018


MAnAgEMEnT DISCuSSIOn AnD AnAlySIS REPORT

Forward looking statements

1. StatementsinthisManagementDiscussionandAnalysisof Financial Condition and Results of Operations ofthe Company describing the Company’s objectives,expectations or predictions may be forward lookingwithin themeaningof applicable securities lawsandregulations.Forwardlookingstatementsarebasedoncertainassumptionsandexpectationsoffutureevents.TheCompanycannotguaranteethattheseassumptionsandexpectationsareaccurateorwillberealised.TheCompanyassumesnoresponsibilitytopubliclyamend,modify or revise forward looking statements on thebasis of any subsequent developments, informationor events. Actual results may differ materially fromthose expressed in the statement. Important factorsthatcouldinfluencetheCompany’soperationsincludegovernment’sstrategyrelatingtoacquisitionofnavalplatforms, changes in government regulations, taxlaws,economicdevelopmentswithinthecountryandsuch other factors globally.The financial statementsare prepared under historical cost convention, onaccrual basis of accounting and in accordance withtheprovisionsoftheCompaniesAct,2013(the“Act”)and complywith theAccountingStandards specifiedunder Section 133 of the Act. The management ofCochinShipyardLimited(“CSL”or“theCompany”)hasusedestimatesandjudgmentsrelatingtothefinancialstatementsonaprudentandreasonablebasis,inorderthatthefinancialstatementsreflectinatrueandfairmanner,thestateofaffairsfortheyear.

2. The following discussions on our financial conditionandresultofoperationsshouldbereadtogetherwithourauditedconsolidatedfinancialstatementsandthenotestothesestatementsincludedintheannualreport.

Shipbuilding and Shiprepair Industry

Global Shipbuilding Industry

3. Latest forecast of International Monetary Fund(IMF)putsworld’seconomicgrowthof2018at3.7%comparedto3.6%of2017and3.2%of2016.WorldBankpredictstheGDPtoaccelerateat2.9%comparedto2.7%intheyear2017.Clarksonspredictsintermsof global seaborne trade an annual growth of 3.5%whichislesserthan2017figuresof4.1%.Atthesametimethefleetislikelytogrowat4.3%comparedtothefleetgrowthof3.8%in2017.

4. AsperthereportofM/s.ATKearney,theshipbuildingindustry is still going through a cyclical downturngloballyduetooversupplyofvesselsduringtheperiod2006-2010 and overall decline in commodity tradeespeciallyinChinaandEU.Throughouttheearlypartof FY 2017 the shipping and consecutively the oilexploration industrywasseverely impactedowingtoavolatile anddepressedoil prices. Since then,whileoilpriceshaverebounded,aquickturnaroundoftheshippingandoilexplorationindustryisnotforecasted.As per the Maritime outlook report 2017 by theNorwegian Ship ownersAssociation, therewill be adeclineinprofitabilityandturnoveroftheirmembersduringFY2017.

5. The major freight indices are still hovering all timelowbutshowingsomeimprovements.TheChinanewbuildingpriceIndexisalsoshowingsametrendashadeabove the all time low levels. Maritime IntelligenceOutlook2018publishedby Lloyd’s List, reports thatthere are positive catalysts across the segmentsfor maritime Industry. At the same time the fragilerecovery can be easily derailed bymacro economicsandfleetgrowth.

6. The above reports indicated that the industry is notoutofitsdepressionandisfairtosaythatitmaytakesomemore time for the Industry to stabilise beforegainingmomentumandtakeapositivetrajectory.

Indian Shipbuilding Industry

7. Defence Shipbuilding: In the defence sector, theindustry outlook remainedpositive.The IndianNavyand Coast Guard are working on various projectsto modernise the fleet. Also, other agencies underMinistryofHomeAffairs (MHA)arealsoworkingonmany projects on coastal security. Defence buildingopportunity at present is estimated to be USD 23billionandtheestimateisUSD50billionina3-5yearstime(AsperthereportofM/s.ATKearney).

8. CSLhas emerged as lowest bidder inASWCorvettevessels for Indian Navy estimated at ` 5392 coresplus taxes and 56 Boats for MHA estimated at `358.83croreplustaxes.

9. Commercial Ship Building: Indian commercialshipbuildingorderinglevelsremainedlow.Atpresent,thereisnonewbuildingshiponorderbythecountry’s


largestcommercial shipowner,ShippingCorporationof India. Whenever a demand arises, to meet thechallengingcommercialcharterratesprevailinginthemarket,shipownersaremorefocussedonsecondhandshipswhich are readily available atvery competitiveprice.Inadditiontotheinternationaldepressedmarketconditions,thedifficultytoraisethefundfrombanksfornewacquisitionandtheimpositionofGSTontheincome of ship owners have dampened the interestto increase the Indianfleet.However, followingnewsegmentsareshowingpositiveoutlook.

10. InlandandCoastalWaterSegment:Thegovernment’sfocusondevelopmentofinlandandcoastalwaterwaysinfrastructureisexpectedtospurdemandofshipsforthissector.TheGovernmentisinvestingsubstantiallytoimprovetheinfrastructureinthemajorwaterways.This will spur the demand for such vessels in theinlandwatersegment.Itisestimatedthatthevesselsrequiredtomeetthedemandby2030willtriplewhichmaybearound3000+vessels.CSLisworkingcloselywithInlandWaterAuthorityofIndia(IWAI)andotherpotential customers to provide efficient productsolutionsinthissegment.

11. SpecialPurposeVessels:Variousagenciesarelookingformodernandefficientvesselstoequipandupgradetheassetstomeettheoperationaldemands.Thisgivesan opportunity to offer custom made vessels suchas Polar Research Vessels, Well Stimulation Vessel,Cement Carriers etc.

12. FishingSegment:Governmentof India (GOI)hasgotan ambitious plan under the “Blue Revolution” toequip the segment with more modern and efficientfishing vessels. This segment is presently managedbyunregulatedplayersandgivesagoodopportunityforCSLtofocusandpositionitselfasaqualityplayer.CSL isworking closelywithTamil Nadu Fisheries byprovidingcustommadesolutiontothefishermenandhascontractedfortheconstructionof16vesselsasapilotproject.Thetotalrequirementforthedepartmentforfishermenisabout2000vessels.Inadditiontotheabovetherearealsopotentialrequirementsformorebigger and sophisticated vessels in this segment forthedomesticandinternationalmarket.

Shiprepair Industry

13. WhileIndia’sshareinglobalshiprepairmarketislessthan1%,around7-9%ofglobaltradeispassingwithin300NMofitscoastline.India’sstrategicpositionalongthe east bound andwest bound international traderoutesoffersanopportunitytocatertovesselsplyingon these routes.Amain container route connectingAmericaandEuropetotheEastpassesveryclosetothe Indian coastline presenting amajor opportunity

for repairs. This presents huge untapped potentialwhichisvaluedaround`3500to`4000crore.

14. The captive market for shiprepair in India isestimated at around ` 2500 crore. It is estimatedthat only 15% of the potential is being tappedpresently. Lack of infrastructure and poor ease ofdoingbusinessdue togovernment regulationsandweak ancillary support are the main reasons forfailuretotaptheaboveopportunities.AsapartoftheSagarmalaproject,governmenthasembarkedonaprogrammeforfullutilisationofexistingdrydockin major ports for providing shiprepair services.Towards this end, CSL has entered into an MOUwiththeMumbaiPortTrustonJanuary11,2018foroperations and management of ship repair facilityatIndiraDock.CSLshallutilizethefacilitiesforthepurpose of ship repair and allied services and forfurtherexpansioninthefieldofshiprepair.SimilarMOU has been signedwith Kolkata Port Trust onMarch17,2018foroperationsandmanagementofshiprepairfacilityatNetajiSubhasDock.CSLshallutilize the facilities for the purpose of ship repairandalliedservicesandforthegrowthofshiprepairin the region and similarMOU is on the anvil forAndamanandNicobarIsland.

Government Policy on Shipbuilding and ShiprepairSagarmala

15. TheSagarmaladevelopmentinitiativesofGovernmentofIndiaaimsatportleddevelopmenttoreplicatethemodel followed by some of the successful maritimenationslikeUSAorSingapore.Variousinitiativeshavebeen planned under Sagarmala perspective plan forport led development such as port modernisation,improvingportconnectivity,port ledindustrialisationand coastal community development. Around 150+projectsatacostof`4 lakhscroreof infrastructureinvestmentisenvisaged.Thedevelopmentofportsisexpected to foster clusterdevelopmentof industriesincluding that of Shipbuilding and shiprepair. Apartfromthis,anumberofkeypoliciesandinitiativeshavebeen instituted byGovernment of India focusing onthedevelopmentof theshipbuildingsector.Someofthesekeyinitiativesinclude:-

(a) Financial Assistance for local shipbuilders:-Introductionof`4000crorefinancialassistancepolicyfor10years

Asperthepolicy,commencing2015-16,financialassistance is to be granted to Indian shipyardsstarting with 20% of the lower of “Contractprice”or the“FairPrice”ofeachvesselbuiltbythemanddiminishingupto10%overaperiodof10years.


(b) ExemptionfromCustomsandCentralExcisedutyoninputsusedinshipbuilding.

(c) Infrastructure status:- This move is to helpIndian shipyards avail flexible structuring oflongtermproject loans, longtermfundingfrominfrastructure funds at lower interest rates andlongertenureequivalenttotheeconomiclifeoftheirassets.Shipyardstohaveaccesstorelaxedexternal commercial borrowing norms, issuanceof infrastructure bonds for meeting workingcapitalrequirementsandIncomeTaxbenefits.

(d) 100% Foreign Direct Investment permitted inshipbuilding.

(e) Revisionofdomesticeligibilitycriteria:–AllGovt.departments and agencies shall undertake bulktendering for their vessel related requirementswith deliveries starting from 2016-17 and willgrantarightoffirstrefusalforIndianshipyardsforsuchorderstill2025.From2025onlyIndianbuildvesselsaretobeprocuredbytheseagencies.

16. In the shiprepair segment the focus of GOI is betterutilizationofexistinginfrastructureinmajorportsandbuildingupofnewinfrastructurethroughuniformpolicygoverningleaseofrepairinfrastructuretospecialists.

Operations

17. OurCompany’sperformancecontinuedtobepromisinginallsegments.ThetotalturnoveroftheCompanyis`2355.12croreasagainstthatofthepreviousyearof`2058.87crore.Theshipbuildingincomeduringtheyear

is `1731.86croreasagainstthepreviousyearincomeof `1515.82crore.Duringtheyear,CSLdeliveredtwoRO-RO Ferries to KochiMunicipal Corporation. TheCompanycontracted threeoutof16Nos. tuna longlining and gillnetting fishing boats for diversificationofthetrawlfishingboatsfrompalkbayintodeepseafishingboatsundercentralsectoronBluerevolutionscheme with assistance from Government of IndiaandtheGovernmentofTamilNadu.ThisisCSL’sfirstentry into the fishing vessel construction segment.CSL,known for its capabilities inconstructionofbigand high end specialised vessels wishes to bring inquality,modernandefficientproductstothiscurrentlyunorganised sector thereby benefitting not only thefishing community, but also partnering in the effortto sustain the ecology by promoting long lining andgillnetting activities as against the highly damagingtrawling that currently exists in this space.Also, theCompany’s foray in the coastal security boats usingFRP/ Composite material will leverage the overallexperience to bring new products to cater to thisgrowingsegmentforthefuture.

18. The year was really remarkable with reference tothe shiprepair performance of the Company. The income from shiprepair increased to ` 623.27 crorefrom ` 543.05crore in thepreviousyear.Themajorshiprepair projects undertaken during the yearwerenormal refit of INSShakthi, INSNireekshak and INSAiravat for Indian Navy and refit of Sagar Bhushanof ONGC. Around ` 46.50 crore of turnover wascontributed from International Ship Repair Facility(ISRF)atCochinPortTrustpremises.

Financial Information

19. ThefinancialinformationoftheCompanypertainingtothelastdecadeisgivenbelow:(Amountin`Crore)

Year Paid up capital

Nominal value of shares (` per share)

Capital employed

Net worth

Profit Before

Tax

Tax on Profits

Net Profits EPS Dividend Payout

ratio

17-18 135.94 10 3212.22 3255.87 604.86 208.11 396.75 31.03 163.12 0.4116-17 113.28 10 2089.05 2028.58 493.40 171.85 321.55 28.39 101.61 0.3215-16 113.28 10 1695.35 1814.33 419.65 145.86 273.79 24.07 86.65 0.3214-15 113.28 10 1621.24 1561.07 367.56 132.49 235.07 20.75 16.99 0.0713-14 113.28 10 1389.98 1352.53 290.96 96.71 194.24 17.15 16.99 0.0812-13 113.28 10 970.84 1175.70 275.55 90.28 185.27 16.35 16.99 0.0911-12 152.42 10 918.68 1050.83 252.97 80.63 172.33 15.21 16.99 0.1010-11 192.42 10 829.27 967.80 344.23 116.70 227.53 20.09 11.32 0.0509-10 192.42 10 578.32 680.32 331.25 108.21 223.04 19.69 11.32 0.0508-09 232.42 10 550.31 566.49 247.63 87.56 160.07 14.13 11.32 0.07


Proposed / Declared Dividend

20. As per Office Memorandum F.No.5/2/2016-Policydated May 27, 2016 issued by the Department ofInvestment and Public Asset Management (DIPAM),everyCPSEhavetopayaminimumannualdividendof30%ofPATor5%ofthenetworth,whicheverishigher.Accordingly,yourDirectorsarepleasedtorecommenda dividend of ` 12 per share on the 1,35,93,60,000fullypaidequitysharesof`10each.Thetotaloutgofordividendanddividendtaxwouldbeapproximately`196.65crore.

Segment wise/ product wise performance

21. TheCompany is engaged in twomajor activitiesviz.shipbuilding and repair of ships /Offshore Rigs etc.Segmentwise analysis hasbeenmadeon the abovebasisandamountsallocatedonareasonablebasis.Thedetailofsegmentwiseperformanceisgivenbelow.

(`Lakhs)

Particulars As at 31.03.2018

As at 31.03.2017

SegmentAssets Shipbuilding 231887.20 169699.79Ship Repair 168349.50 125884.57Others 146692.04 36068.78Total 546928.74 331653.14SegmentLiability Shipbuilding 89620.66 40854.99Ship Repair 23368.86 21547.62Others 108352.53 66392.29Total 221342.05 128794.90ExternalSales Shipbuilding 173185.70 151582.17Ship Repair 62326.63 54304.93Unallocated 3494.36 2777.73Total 239006.69 208664.83

SWOT

22. Cochin Shipyard perceives the following to be itsStrengths,Weaknesses,OpportunitiesandThreats.

Strengths:(a) Highly trained, motivated and knowledgeable

manpower with an average of 15 years ofexperience at all levels of hierarchy resulting inextremelyhighqualityworkmanship;

(b) A well planned and laid out shipyard enablingsmoothworkflow;

(c) Amodern‘StateoftheArt’DesignCentremannedby highly trained, experienced and competentNavalArchitects/Engineers,draftsmenetc.;

(d) Highly evolved shipbuilding processes andpractices permitting modular construction ofships;

(e) Averygoodproductmixcompatibilitycomprisingof defence ships, commercial ships, offshoresupportships;

(f) Availability of quality sub contractors and goodsupplychainnetwork;and

(g) ‘Stateof theArt’ facilitiesespecially in termsofcraneage, transporters, covered mobile shops,covered marine coating facility, high qualitywelding equipment, international standard hullfabricationfacilities,substantialmaterialstoragefacilitiesetc.

Weaknesses:(a) Virtually non-existent indigenous ancillary

industries and consequently non availability ofmajorequipment/rawmaterialsinIndia;

(b) Infrastructureconstraintsduetononavailabilityof large sized dock to build and repair shipsbeyond 1,10,000 DWT and 1,25,000 DWTrespectively. (This will be overcome with theproposednewdrydock);

(c) Difficultytoarrangelongtermprojectfinancetoshipownerswhich is offeredbyotheroverseasshipbuildingcountries;and

(d) Comparatively higher social and employeeoverheadsandcertainrestrictivelabourpracticesespeciallyforcontractinglabour.

Opportunities:(a) Projected increase in requirement of ships

for the domestic commercial segment, owingto thenewGOIpolicy toencourage “Make inIndia”;

(b) Projecteddemandinthedefencesector.(c) Indian Navy, Coast Guard and other maritime

securityagencieshaveembarkedonanambitiousexpansion programme which will open newopportunities;

(d) LNGfuelledvessels,bothdeepseaandcoastal;(e) Emergingopportunities in the inlandwaterways

andcoastalshippingsectorinIndia;(f) Fishing vessels for both domestic and overseas

market;

(g) Tap opportunities for FRP boats for coastalsecurity;and

(h) Huge demand - supply gap for the repair ofCommercial andDefence ships andvirtually nocompetitioninIndia.


Threats:

(a) Distresspricingpoliciesofcompetitors;(b) Adverse reputational impact on the Indian

Shipbuilding industryduetounderperformancebyIndianyards;

(c) Risingcostoflabour;and(d) Non flexible government regulations on

procurement policies delaying the productdeliverytimelinesandcost.

CSL 2030 - Strategic Plan

23. CSL has constituted a ten member core group fortakingforwardtheeffortsinformulatingaCSL2030-Strategic Plan. Towards this, an EOI was issued onJune08,2017forshort-listingabestinclassstrategicconsultancy firmof international reputewho in turnwillworkcloselywithCSLteamtoformulatethisplan.Tenderingforfinalisingthefirmisundeway.

Risks and concerns

24. Thecommercialshipbuildingindustryishighlycyclicalinnatureandisalsosensitivetocyclicalnatureoftheindustriesitservessuchastheoil,naturalgas,shipping,transportationandothertrade-relatedindustries.

25. TheCompany’soperationsaresubjecttoinherentriskssuchasequipmentdefects,malfunctionsandfailures,equipment misuse and disasters that can result infiresandexplosions.CSLmaintainastandardfireandspecial perils policy but CSL do not have insurancefor business interruption. Substantial portion of theCompany’s activities involve the fabrication andrefurbishmentoflargesteelstructures,theoperationofcranesandotherheavymachineryandotheroperatinghazards. These risks could expose the Company tosubstantialliabilityforpersonalinjury,wrongfuldeath,productliability,propertydamage,pollutionandotherenvironmentaldamages.

26. ThemajorcomponentoftheCompany’sexpenditureinclude raw materials such as steel (the grade andquality of which, in each project, depends on theapplicable classification rules) and other materials,equipment and other components such as pumps,propellersandengines.InFiscals2015,2016and2017respectively, the Company’s material consumptioncosts constituted 64.57%, 64.01% and 58.36% ofits total costs, respectively. In particular, bought outcomponentsaccountedfornearly90%ofourtotalrawmaterialcostintheserecentfiscals.

27. Shortages in thesupplyof rawmaterialsmayresultinanincreaseinthepriceoftheserawmaterials.Forexample,therearesupply-sideconstraintsinrelationto steel in India which we expect will continue infuture.TheIndiansteelindustryhasbeenunableto

competegloballyduetowhichtheGOIhasimposedsignificantdutieson the importof steel fromothercountries such as China to protect the domesticsteel industry. This has adversely affected CSL byincreasing thecostofprocurement. Inaddition, thecost of certain raw materials, such as steel, mayfluctuate in line with any changes in their globalsupplyanddemand.

28. In the event that the price of the Company’s rawmaterials increase, the Company will not be ableto pass these price increases to its customers on its existing fixed contracts and its business, financialconditionandresultsofoperationsmaybeadverselyaffected.

Product Diversification

29. CSLhasidentifiedCompositesasafastgrowingsegmentandinitiatedeffortstowardsdiversifyinginthisdirection.Asaresult,CSLhasparticipatedintheMHAtenderfor225CoastalPatrolBoatsandhasemergedL1bidderfor56boats.Similarly,with theGOI focusingon theBluerevolutionandtherecentimpetusfortheupliftmentofthe fishing community all along the coastal India, CSLserves a surge both in the demand as well as in thequality of the fishing vessel segment in India. ProductdiversificationinthisdirectionwasonlylogicalandCSLhasalreadymanagedtosecureordersfor16fishingboatsfrom Tamil Nadu.With volumes to the tune of manythousandsbeingprojectedbytheindustry,CSLfeelsthatthiscouldeventuallyturnouttobeaseparateverticalbyitself,ifeverythinggoesasplannedbythegovernment.

Internal Control

30. The Company has promulgated an internal controlandinternalauditmanualandhas inplaceadequateinternal control systems.The internal audit functionis carried out by an independent firm of CharteredAccountants who carry out an in-depth reviewof internal control systems in critical areas basedon the audit programme approved by the boardlevel audit committee headed by an independentdirector.Areviewof the internalcontrolprocedureswas undertaken byM/s.Varma andVarma, InternalAuditorsasaseparateexercise.

Human Resource Development and Industrial Relations

31. Thedetails regardingHumanResourceDevelopmentandIndustrialRelationsaremorespecificallycoveredintheDirectors’Report.

Women Empowerment

32. Cochin Shipyard Limited has constituted an InternalComplaints Committee in accordance with theguidelines and norms prescribed by the enactmentnamely Sexual Harassment ofWomen atWorkplace


(Prevention,ProhibitionandRedressel)Act,2013.TheChairpersonoftheInternalComplaintsCommitteeisaseniorwomanexecutiveoftheCompany.TheCertifiedStanding Orders applicable to Workmen have alsobeenamendedincorporatingSexualHarassmentasanactconstitutingmisconduct.The InternalComplaintsCommitteehasbeendulyempoweredtoinquireintosuchcomplaintsinaccordancewiththeprocedurelaiddown in theCertifiedStandingOrdersand IndustrialEmployment(StandingOrders)ActandRules.

33. Delegates from CSL were nominated to attendthe Southern Regional Meet of WIPS held atMahabalipuramonSeptember16,2017andthe28thNationalMeetofWIPSheldatGuwahationFebruary12and13,2018.

34. WIPSCellofCSLhadinitiatedthefollowingactivitiesthroughtheCSRprojectsofCSL:• “SupportforConstructionofaWorkCentrethat

Promotes Environment Friendly products andincreases the Income of Marginalized Women”through ‘Society of Theresians for EnvironmentProtection (STEP), an outreach body of thestudentsofSt.Terasa’s;and

• Provided fund for constructing Office cumCommon Facility Centre for Fish WorkersDevelopment Cooperative Society inChendamangalam.Most of themembers of thesocietyarepoorwomenfishworkers,whobelongto theVala Samajam, functioning at the coastalbeltnearParur,Ernakulam.

35. Forum ofWomen in Public Sector (WIPS), CSL unitin association with the Indian Women Network,organised sessions on Soft Skill Development andStressReleaseon the InternationalWomen’sDayonMarch08,2018.

36. The Company has ensured participation of womenemployees as part of joint forum of employees andmanagement such as Joint Council, Shop Councils,CentralSafetyCouncil,ShopSafetyCouncil,EmployeeContributoryProvidentFundTrust,EmployeesCochinShipyardRecreationClub,EmployeesCochinShipyardConsumer Society etc.

Technology Conservation

37. CSL continuously strives for conservation andupgradation of technology to remain competitivein the global shipbuilding market. Towards this theCompanyhastakenthefollowinginitiatives:i. Developed contract & basic design for 16 nos.

gill net long liner fishing vessels in technicalcollaboration with the Central Institute ofFisheriesTechnology,ICAR;

ii. DevelopedconceptdesignforMarineAmbulanceboatforKeralaGovt.;

iii. DevelopmentofspecificationforimplementationofAccommodationsystem&HVACPackagefor500PAX;

iv. DevelopmentofspecificationforimplementationofAccommodationsystemfor1200PAX;

v. DevelopmentofspecificationforimplementationofHVAC&Refrigerationsystemfor1200PAX;

vi. Development of specification for theprocurement of equipment/systems incompliance to SRtP (Safe Return to Port)requirementsfor1200PAX;

vii. Developmentofspecificationfortheprocurementof Power and Automation system, Navigationand communication system, Lighting, ElectricalCables for 1200 PAX in compliance with SRtPrequirements;

viii. In-house development of 3D modeling forAccommodation & other outfit Systems inAccommodation spaces for the TechnologyDemonstrationVessel(Ship020)forDRDO/500PAXforA&NAdministration/1200PAXforA&NAdministrationinTribonunderprogress;

ix. In-house development of 3D modeling forElectrical outfitting for 1200 PAX for A&NAdministrationis inprogress incompliancewithSRtPrequirements;

x. Inhouseconceptualdesignof integratedfireandflood detection system by suitably combiningexistingstandalonesystemsforfiredetectionandflooddetectionforSRtPcompliancefor1200PAX;

xi. Softwareupgradesfor“CableManager”-Inhousedevelopedcableschedulingandnestingsoftwareforusageonboardprojects;

xii. Softwareupgradesfor“ElectricalApps”-InhousedevelopedproductiondesigncustomizationtoolforTribonM3forusageinongoingprojects;

xiii. Functional design drawings developed forelectricalcableroutesandantennaarrangementbased on the EMI/EMC requirements forTechnologyDemonstrationVessel(Ship020)forDRDO,specialpurposevesselforGovt.ofIndia;

xiv. DevelopmentofspecificationfortheprocurementofspecializedHatchCoversrequiredforthearticlelaunching for the Technology DemonstrationVessel (Ship 020) for DRDO, special purposevesselforGovt.ofIndia;

xv. Installation of High Voltage Power generation& distribution system, high power propulsion


system, UPS systemswith neutral arrangementforClientSystempowerdistribution,Navigation&CommunicationsystemsmeetingDNVNaut-AWand IRS IBS notations, SPS code requirements,onboardTechnologyDemonstrationVessel(Ship020),specialpurposevesselforGovt.ofIndia;

xvi. Structural interface of Client systems (DRDO)withShipsystemsforTechnologyDemonstrationVessel(Ship020),specialpurposevesselforGovt.ofIndia,specialpurposevesselforGovt.ofIndia;

xvii. Installation of 1500NB valve with electricactuation onboard Technology DemonstrationVessel(Ship020),specialpurposevesselforGovt.ofIndia;and

xviii.Preparation of Technical specification and3D modeling of completely explosion prooftype Electrical Overhead Cranes for ClientArticle Handling operations for TechnologyDemonstrationVessel(Ship020),specialpurposevesselforGovt.ofIndia.

Corporate Social Responsibility (CSR) and Sustainability

38. Formoredetails,pleaserefertheannualreportonCSRactivitiesplacedatAnnexure-4toDirectors’Report.

Micro Small and Medium Enterprises (MSME) as per the Public Procurement Policy 2012

39. Though the scope of procurement of material/equipment/ spares and availing services fromMicro,SmallandMediumEnterprises(MSME)forshipbuildingand shiprepair projects undertaken by the Companyareextremely limited, theCompany ismakingallouteffortstoincreasetheprocurement/availingservicesfromMSMEs.Thetargetof20%procurementofgoodsand services from MSMEs out of total indigenousprocurementforFY2017-18,tillJanuary31,2018,hasbeenachievedbytheCompany.

40. Withaviewtopromoteprocurement/availservices,through MSMEs, as per the Public ProcurementPolicy 2012, promulgated by the Government ofIndia (GOI),CochinShipyardLimited(CSL)attendedSix (6) Vendor Development Programmes (VDPs)organizedbytheDept.ofMSME,GOIwhichincludedoneconclaveonSC/STMSMEvendors,atBolgattyPalace, Cochin, on January 17, 2018, in whichCSL representative made a presentation on CSL’srequirement of product and services fromMSMEs.Othernotableeventamong theabove6VDPswastheNationalVDPheldatThrissurfromDecember07to09,2017, inwhichCSLputupastallwhichwas

declaredas thebest stall in theexhibitionandwaspresentedwithanawardinthatregard.

41. In addition to the above, CSL conducted a majorexhibition for the MSMEs named ‘LAGHU UDYOGEXPO-2017’onMay15and16,2017atMarineDriveGround,Ernakulam.TheexhibitionwasorganisedwiththesupportofDepartmentofIndustries&Commerce,Govt. of Kerala and MSME Development Institute,Thrissur,andwasinauguratedbytheHon’bleMinisterfor Industries,Youth andSportsAffairs,Governmentof Kerala. The programme consisted of IndustrialExhibition&B2BMeetforMSMEs.Theeventofferedmeaningful platform forMSMEspredominantly fromKeralaforshowcasingtheirproducts/servicesandforinteracting/marketingwithprospectiveclients.MajorCentral andStatePSUsofKerala andbanks activelyparticipatedintheprogram.80stallsand10B2Bmeetcounters/roomswerearrangedatMarineDrive,Kochiinafullyair-conditionedexhibitionvenue.Further,thetwodayswere enrichedwith different seminars andpresentationsbyvariousMSMEs,industries&experts.Nofeeswerechargedfromtheparticipantsaswellasfromvisitors of commonpublic andCSL funded theentireexpenditure.

42. Other initiatives include, making CSL website user-friendly for MSME vendors and regular uploadingof procurement data and other details in “MSMESAMBANDH” portal launched by Ministry ofMSME,GOI.

Cautionary Statement

43. Statements in this ‘Management Discussion andAnalysisReport’describingtheobjectives,expectations,assumptions or predictions of the Company may beforward looking statements within the meaning ofapplicablerulesandregulations.Actualresultscoulddiffermaterially from those expressed or implied. Importantfactors thatcouldmakeadifference to theoperationsof theCompany includeeconomicconditionsaffectingdemand/supply, price conditions in the domesticand international markets, Government policies andregulations,statutesandotherincidentalfactors.





BuSInESS RESPOnSIBIlITy REPORT

About this report

IntermsofRegulation34oftheSEBI (ListingObligationsand Disclosure Requirements) Regulations, 2015, theAnnualReportsofthetopfivehundredlistedentitiesbasedonmarketcapitalizationattheBSEandNSEshallcontaina Business Responsibility Report (BRR) describing theinitiatives taken by the Company from an environmental,socialandgovernanceperspectivewhichincludesCSL.

Section A: General Information about the Company

1. CorporateIdentityNumber(CIN)oftheCompany U63032KL1972GOI0024142. NameoftheCompany CochinShipyardLimited3. Registeredaddress AdministrativeBuilding,CochinShipyardPremises,

Perumanoor,Cochin,Ernakulam,Kerala-6820154. Website www.cochinshipyard.com5. E-mailid [email protected]. FinancialYearreported 2017-187. Sector(s) that the Company is engaged in (industrial

activitycode-wise)ShipbuildingandShiprepair(IndustrialGroup301and331asperNationalIndustrialClassificationoftheMinistryofStatisticsandProgrammeImplementation)

8. Listthreekeyproducts/servicesthattheCompanymanufactures/provides(asinbalancesheet)

TheCompanyisengagedinbusinessofshipbuildingandshiprepair.Inter-aliaconsideringnatureofproductionprocessandinfrastructurefacilitiesused,therearenootherreportablesegment.

9. TotalnumberoflocationswherebusinessactivityisundertakenbytheCompanya. NumberofInternationalLocations(Provide

detailsofmajor5)b. NumberofNationalLocations

Nil

One10. Markets served by the Company – Local/State/

National/InternationalLocal,State,NationalandInternational

Section B: Financial Details of the Company1. PaidupCapital(INR) 135.94crores2. TotalTurnover(INR) 2355.12crores3. Totalprofitaftertaxes(INR) 396.75crores4. Total spending on Corporate Social Responsibility

(CSR)aspercentageofprofitaftertax(%)2.16

5. Listofactivities inwhichexpenditure in4abovehasbeenincurred:-

CSL’sCSRactivitiesarecarriedoutinthefollowingfocusareas:• Education&SkillDevelopment• SwachhBharatProjects• Healthcareinitiatives• Empowermentofwomenanddifferentlyabledpersons

ThereportingframeworkisbasedontheNationalVoluntaryGuidelines on Social, Environmental and EconomicResponsibilitiesofBusiness(NVGs)releasedbytheMinistryof Corporate Affairs, Government of India, in July 2011whichcontains9PrinciplesandCoreElementsforeachofthe 9 Principles. Following is the Business ResponsibilityReport of our Company based on the format suggestedbySEBI.


Section C: Other Details

1. Does the Company have any Subsidiary Company/Companies?

Yes,CSLhasonesubsidiaryviz.,HooghlyCochinShipyardLimited.

2. Do the Subsidiary Company/ Companies participatein theBR initiativesofparent company? Ifyes, thenindicatethenumberofsuchsubsidiarycompany(s)

No.TheSubsidiarycompanywasincorporatedonlyinOctober2017andisyettocommenceoperations.HencethecompanyhasnotstartedtoparticipateintheBRinitiativesofCSL.

3. Doanyotherentity/entities(e.g.suppliers,distributorsetc.)thattheCompanydoesbusinesswith,participatein the BR initiatives of the Company? If yes, thenindicatethepercentageofsuchentity/entities?[Lessthan30%,30-60%,Morethan60%]

ThecompanyhasadoptedwellestablishedproceduresforOutsourcingandprocurementactivitiesinordertoensurequality,ontimedeliveryandoptimumcost.Careistakentohaveapanelofvendorswithsoundintegrity.Thecompanyhasintroducedepayment,integritypactetcforamoretransparentmethodofprocurement.Thestandardtermsandconditionsofpurchaseorderconformstothecompanypolicyonsafety,environmentetcandareacceptedbythevendor.Hencemajority(morethan60%)conformtothekeyprinciplesofthebusinessresponsibility

Section D: BR Information1. Details of Director/Directors responsible for BR (a) Details of the Director/

Directors responsible forimplementation of the BRpolicy/policies

1.DIN

2.Name

3.Designation

(b) DetailsoftheBRhead

BRfunctionrelatingtoCorporatesocialresponsibilityandsustainabilityismonitoredbytheCorporateSocialResponsibility&SustainableDevelopment(CSR&SD)CommitteeoftheBoardofDirectors.ThedetailsoftheCompositionoftheCSR&SDCommitteeareprovidedintheCorporateGovernanceReport.

TheCSR&SDCommitteeoftheCompanyisundertheChairpersonshipofSmt.RoopaShekharRai.

ThedetailsoftheChairpersonofCSR&SDCommitteeofCSLareasfollows:DIN:07565156Name:Smt.RoopaShekharRaiDesignation:IndependentDirectorEmailID:[email protected]

TheBoardhasnotassignedresponsibilitiesspecificallytoanyDirectortofunctionastheBRhead.

2. Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N)The9principlesoutlinedintheNationalVoluntaryGuidelinesareasfollows:P1 BusinessesshouldconductandgovernthemselveswithEthics,TransparencyandAccountability.P2 Businessesshouldprovidegoodsandservicesthataresafeandcontributetosustainabilitythroughouttheirlife

cycle.P3 Businessesshouldpromotethewell-beingofallemployees.P4 Businessesshouldrespecttheinterestsofandberesponsivetowardsallstakeholders,especiallythosewhoare

disadvantaged,vulnerableandmarginalized.P5 Businessesshouldrespectandpromotehumanrights.P6 Businessesshouldrespect,protectandmakeeffortstorestoretheenvironment.P7 Businesseswhenengagedininfluencingpublicandregulatorypolicy,shoulddosoinaresponsiblemanner.P8 Businessesshouldsupportinclusivegrowthandequitabledevelopment.P9 Businessesshouldengagewithandprovidevaluetotheircustomersandconsumersinaresponsiblemanner.


Sl.No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P91 Doyouhaveapolicy/policiesfor.... Y Y Y Y Y Y Y Y Y2 Hasthepolicybeingformulatedin

consultationwiththerelevantstakeholders?Y Y Y Y Y Y - Y Y

3 Doesthepolicyconformtoanynational/internationalstandards?Ifyes,specify? (50words)

Y Y Y Y Y Y Y Y YVariouspoliciesatCSLconformtodifferentapplicablestatutes/guidelines/rulesetc.issuedbyGOI,andupdatedfromtimetotime.Industrypractices,national/internationalstandardsarekeptinviewwhileformulatingpolices.

4 HasthepolicybeingapprovedbytheBoard?Ifyes,hasitbeensignedbyMD/owner/CEO/appropriateBoardDirector?

Y Y Y Y Y Y - Y YDifferentpoliciesareapprovedbytheBoard/CompetentAuthoritiesasperdelegationofpower.

5 DoesthecompanyhaveaspecifiedcommitteeoftheBoard/Director/Officialtooversee the implementation of the policy?

Y Y Y Y Y Y - Y Y

6 Indicatethelinkforthepolicytobeviewedonline?

ThepoliciesareavailableonCompany’swebsite:http://www.cochinshipyard.com/investors.htm

7 Hasthepolicybeenformallycommunicatedtoallrelevantinternalandexternalstakeholders?

Yes.ThepolicieshavebeencommunicatedtothestakeholdersbyuploadingontheCompany’sabovementionedwebsite.Quality,Health,SafetyandEnvironmentalPolicyisuploadedinintranetoftheCompanyaswellasCSL’swebsite.ThesameisalsodisplyedatallmajorlocationoftheCompany.

8 Doesthecompanyhavein-housestructuretoimplementthepolicy/policies.

Yes

9 DoestheCompanyhaveagrievanceredressalmechanismrelatedtothepolicy/policiestoaddressstakeholders’grievancesrelatedtothepolicy/policies?

TheBoardhassetupaCommitteetoaddressthegrievancesofthestakeholders,debentureholdersandotherpersonsholdingsecuritiesintheCompanyasrequiredundertheCompaniesAct,2013andundertheSEBI(ListingObligationsandDisclosureRequirements)Regulations2015.Inaddition,theCompanyhasalsosetupavigilmechanismtoaddressthegenuineconcerns,ofanyofthedirectorsandemployees.

10 Hasthecompanycarriedoutindependentaudit/evaluationoftheworkingofthispolicybyaninternalorexternalagency?

TheCompanyissubjecttovariousauditssuchasStatutoryAuditbyfirmofCharteredAccountantsappointedbytheComptroller&AuditorGeneral,InternalAudit,C&AGAudit,CostAudit,SecretarialAudit,EnergyAudit,SafetyAudit,IntegratedManagementSystemsAuditetc.Theseauditsensurecompliancetovariousinternalandexternalpolicies.

3. Governance related to BR

(a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year

TheseniormanagementoftheCompanyreviewsBRperformanceonanon-goingbasis.TheBoard/Committees constituted by it review the sameannually.

(b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published?

Yes.TheCompanypublishesBRReportannuallyaspartof itsannualreport.This isthefirstyearafter the applicability of Regulation34(f) of theSecurities and Exchange Board of India (ListingObligations and Disclosure Requirements)Regulations, 2015. The hyperlink for viewingthe report: http://www.cochinshipyard.com/annualreport.htm


Section E: Principle-Wise Performance

Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability

1. Does the policy relating to ethics, bribery and corruption cover only the company? Yes/ No. Does it extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /Others?

TheCompanyhaspositionedanIntegrityPactwhichis signed with bidders to enable them to raise anyissueswithregardtohighvaluetendersofmorethan100 lakhs floated fromtime totime. People of highrepute and integrity are appointed as IndependentExternalMonitors to oversee implementation of thesaidIntegrityPact.

Thepactessentiallyenvisagesanagreementbetweentheprospectivevendors/biddersandCSLcommittingthePersons/officialsofbothsides,nottoresorttoanycorruptpracticesinanyaspect/stageofthecontract.Anyviolationofthesamewouldentaildisqualificationof the bidders and exclusion from future businessdealings.

2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management?

During the financial year 2017-18, 397 investorcomplaintshavebeen receivedby theCompanyandthrough SEBI SCORES Platform, NSE and BSE andRegistrar&TransferAgent.Allthesecomplaintswereattendedtoandresolvedonprioritybasis.

Further,CSLhadreceivedsomefeedbacks/concernsregardingsomeoftheequipmentsusedforthevesselsBY85-86fromacorporateclient.Thefeedbacksweremore of an advice due to the poor service receivedfromtheOEM’s,andYardhadnotinitiatedanyactionsinthisregardsincethiswasmainlyafterthecompletionofguaranteeperiod.

CSLhadcompletedtheNPCCBargeGuaranteeperiodfor the equipments, systems, quality, workmanship,etc, (exceptforPaintingwhich isfiveyears),andhadnotreceivedanyclaimsforanyearafterthedelivery,showingthequalityofconstruction.

Furtherallthecontractedvesselsareconductedwitha Customer Satisfaction Survey, and feedbacks aretakenfromOwnerswillingtosharetheirexperience.The surveys are conducted by an independent thirdpartyfirminordertohaveopen&genuinefeedbackfrom the customer.

Customer Satisfaction Survey is conducted in twophasesforthevesselscontracted,oneonConstructionPhase(PhaseI)andoneaftercompletionofwarranty

period (Phase II). Phase I is intended for an interimfeedback during the ongoing construction stage,in order to identify any concerns from the Ownerduring the construction phase. This also helps Yardto understand the areaof concerns (if any), and caninitiateactionsappropriatelyforimprovementstothelevel ofOwnerexpectations.Phase II survey is afterthe delivery and the completion of warranty periodof the vessel where Owner would have sufficienttime to understand the performance & quality ofconstruction,whichwillprovideanoverallperspectiveoftheirsatisfactionforthenewbuildingcontracted&delivered.

Thesurveysconductedcoverallphasesofconstructionstarting from the pre-contract stage. Feedbacks arerequested from Owners regarding approachability,accessibility,qualityofconstruction,overall technicalcapabilitiesoftheYard&PostDeliveryservices.Theindependentagencysubmitsareportineachfinancialyear for the surveys conducted, and elaboratesregardingthefeedbacksfromvariousclients,specifyingthe areaswhere shipyard is performingwell& areaswhereimprovementsaresuggested.Thisindependentreportprovidesascopetounderstandthestrength&weaknessoftheYardfromtheOwnerperspective,andismuch helpfulwhile approaching the same client /similar clients.

Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.

TheCompanyisengagedinthebusinessofShipbuildingand Shiprepair. As such the Company has only oneproduct, which has been designed to incorporatesocial or environmental concerns as well as benefitfromtheavailableopportunities.

2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product (optional):

(a) Reduction during sourcing / production / distribution achieved since the previous year throughout the value chain?

The company recognizes its commitmentto achieve economic development throughsustainable methods. This is proposed to beachieved through employment of appropriatetechnology, transparency in procurement andoutsourcing and participation in sustainabledevelopment programmes. The company


contributes immensely to the society throughits CSR initiatives in major areas of Education& Skill Development, Swachh Bharat Projects,Healthcare initiatives, Empowerment ofwomenanddifferentlyabledpersons.

(b) Reduction during usage by consumers (energy, water) has been achieved since the previous year?

CSL has implemented various energyconservation measure viz. installation of solarpower plant, electrification of new buildingsis carried out with LED lights instead ofconventional discharge lamps, replacement ofconventional discharge lamp street lights withLEDlightsetc.Energysavingsofapproximately10.93Lakhsunitsperannumhavebeenachievedwith the implementation ofmeasures specifiedabove.

3. Does the company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage of your inputs was sourced sustainably?

The Company has been following approvedcriteria for the selection of vendors to ensuresustainable sourcing which inter alia includesvendors having ISO 9000 certification, vendorsapprovedbyregulatorybodies,variousauthorizeddealers of the manufacturer, ability to providematerials as per laid down specification andotherrequirements,abilitytosupplymaterialsasperstipulateddeliveryperiod,annualevaluationof the orders placed on a vendor is completedto decide the average performance, a vendoris removed/suspended from approved vendorlist based on his average performance over theperiodofevaluation,vendorslistisreviewedandupdatedonceinayear.

4. Has the company taken any steps to procure goods and services from local and small producers, including communities surrounding their place of work? If yes, what steps have been taken to improve their capacity and capability of local and small vendors?

With a view to promote procurement/ availservices, through local and small producersand service providers including Micro Smalland Medium Enterprises (MSME), as per thePublicProcurementPolicy2012,promulgatedby the Government of India (GOI), theCompany attended Six Vendor DevelopmentProgrammes (VDPs) organized by the Dept.of MSME, GOI which included one conclave

onSC/STMSMEvendors,atBolgattyPalace,Cochin, on January 17, 2018, in which CSLrepresentative made a presentation on CSL’srequirement of product and services fromMSEs.Other notable event among the above6VDPswastheNationalVDPheldatThrissurfrom07 to09December2017, inwhichCSLputupa stallwhichwasdeclaredas thebeststall intheexhibitionandwaspresentedwithanawardinthatregard.

Inadditiontotheabove,CSLconductedamajorexhibition for the MSMEs named ‘LAGHUUDYOGEXPO-2017’onMay15and16,2017atMarineDriveGround,Ernakulum.Theexhibitionwas organisedwith the support ofDepartmentof Industries & Commerce, Govt. of Kerala andMSME Development Institute, Thrissur, andwas inaugurated by the Hon’ble Minister forIndustries,YouthandSportsAffairs,GovernmentofKerala.TheprogrammeconsistedofIndustrialExhibition & B2BMeet forMSMEs. The eventoffered meaningful platform for MSMEspredominantly from Kerala for showcasingtheir products/ services and for interacting/marketingwithprospectiveclients.MajorCentraland State PSUs of Kerala and banks activelyparticipatedintheprogram.80stallsand10B2Bmeetcounters/ roomswerearrangedatMarineDrive,Kochi inafullyair-conditionedexhibitionvenue.Further,thetwodayswereenrichedwithdifferent seminars and presentations byvariousMSMEs, industries & experts. No fees werecharged from the participants as well as fromvisitors of common public and CSL funded theentireexpenditure.

5. Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%)?

Duetothenatureoftheproductsofthecompanyandthewastegenerated,mechanismtorecycleisnotavailable.However thewastesaredisposedoff through agencies dealing in such diposal orrecycling and approved by the Environmentalauthorities.

Principle 3: Businesses should promote the well being of all employees

1. Total number of employees: 1781 (permanent employees)

2. Total number of employees hired on temporary / contractual /casual basis: Average 2500 per day.


3. The number of permanent women employees: 151

4. The number of permanent employees with disabilities: 58

5. Do you have an employee association that is recognized by management?: Yes, CSL has four employees association recognised by the Management.

6. What percentage of your permanent employees is members of this recognized employee association? : 72%

7. Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the year

Sl. No. Category No of complaints filed during the financial year No of complaints pending as on end of the financial year

1. ChildLabour/forcedLabour/involuntarylabour

TheCompanydoesnothirechildlabour,forcedlabourorinvoluntarylabour.NoCompliant. NotApplicable

2. Sexualharassment NoComplaintsreceived NotApplicable3. Discriminatory employment Nil Nil

8. What percentage of your under mentioned employees were given safety and skill upgradation training in the last year.

PermanentEmployees:100percent

PermanentWomenEmployees:100percent

Casual/Temporary/ContractualEmployees:100percent

EmployeeswithDisabilities:100percent

Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized.

1. Has the company mapped its internal and external stakeholders?

Yes,TheCompanyhasmappedits internalaswellasexternalstakeholders.

2. Out of the above, has the company identified the disadvantaged, vulnerable and marginalized stakeholders.

CSL’sCSRprojectsaimsatbenefitingthedisadvantaged,vulnerable and marginalised community who arepresentacrossKeralaparticularlyinremoterural/tribalcommunities.FurtherCSLensuresthatthereservationpolicy as advised by Govt of India is implemented.CSLisalsoinvolvedinimprovingthequalityoflifeofpersonsforwhomprojectsarespeciallydesigned.Thecompanyhasidentified(i)SC/ST(ii)Differentlyabledas disadvantaged, vulnerable and marginalized foremployment purpose.

3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders. If so, provide details thereof, in about 50 words or so.

CSL has made commitments for various projectsacrossKerala in itsCSRthrustareas, largelycateringto disadvantaged, vulnerable and marginalizedstakeholders viz. education, sanitation& smart classrooms for children, healthcare initiatives for tribalcommunities, several initiatives for differently abledpersons, empowerment of women through incomeenhancing skill development programs and otherinterventions in rural/tribal/semi-urban areas. Thecompany follows all the GOI regulations regardingreservationsforSC/STandDifferentlyabled.

Principle 5: Businesses should respect and promote human rights

1. Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?

TheHumanresourcepoliciesoftheCompanycoverallaspectsofhumanrightsof itsemployeesandothersassociated with it for operation of its business andcovers human rights of employees of the subsidiaryalso. No complaints have been received in the pastfinancialyearonhumanrights.

The Company is committed to uphold and maintainthe dignity ofwomen employees and it has in placeapolicywhichprovides forprotectionagainstsexualharassmentofwomenatworkplaceandforpreventionand redressal of such complaints. During the yearunderreview,nosuchcomplaintwasreceived.

The Company is committed to comply with allhuman rights, practices across subsidiary and otherstakeholdersassociatedwiththeCompany.

2. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management?


During the year under review, no such complaintswerereceived.

Principle 6: Business should respect, protect, and make efforts to restore the environment

1. Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/Suppliers/Contractors/NGOs/others.

Covers the Company. As a part of the integratedapproach of the Company, our commitment tothe mother nature is demonstrated through ourongoing effort to reduce the adverse impact onthe environment and reinforcing the positivecontribution.Westrivetoachievethisby identifyingthe significantenvironmental aspectsof its activitiesandproductsanddevelopingprogramsandprocessesto reduceor control themwith an aimofprotectingthe environment. The Company also persuades andencouragesitsbusinesspartners/vendors/contractorsto move towards environmental friendly processes,rightfromdesigntodisposal.

2. Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc? If yes, please give hyperlink for webpage etc.

TheCompanyhasadetailedmanualwhichdescribethecommonprocedurestobeestablishedfortheeffectiveimplementation of the environmental managementsystemmeetingtherequirementsoftheinternationalstandardsISO14001:2004.

3. Does the company identify and assess potential environmental risks?

Yes

4. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if Yes, whether any environmental compliance report is filed?

Presently,CSLdoesnothaveanyprojectunderCleanDevelopmentMechanism

5. Has the company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc. If yes, please give hyperlink for web page etc.

CSL has implemented various energy conservationmeasure viz. installation of solar power plant,electrification of new buildings is carried outwith LED lights instead of conventional dischargelamps, replacement of conventional discharge lampstreet lightswith LED lights etc. Energy savings ofapproximately 10.93 Lakhs units per annum have

beenachievedwiththeimplementationofmeasuresspecified above. The Company has undertakenvariousinitiativeslikeelectrificationofnewbuildingswith LED lights instead of conventional dischargelamps, replacement of conventional discharge lampstreetlightswithLEDlights.Theseinitiativesresultsin energy saving in approx. 10.93 Lakhs units perannum.

6. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being reported?

Yes

7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial Year.

Infinancialyear2017-18,therearenopendingCPCB/SPCBshowcause/legalnotices.

Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.

1. Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with:

(a) IndianShipbuildersAssociation

(b) IndoJapanChamberofCommerce

(c) ConfederationofIndianIndustry(CII)

(d) CochinChamberofCommerceandIndustry

(e) AllIndiaManagementAssociation

2. Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify the broad areas (drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others)

The above-mentioned organisations act as aplatformforCSLtoaddress issuesthatmight impactits stakeholders. CSL encourages participation inadvocatingpolicylevelprocessesratherthanlobbyingonanyspecificissues.

Principle 8: Businesses should support inclusive growth and equitable development

1. Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes details thereof.

Asmentionedinthesectionsabove,CSL’sCSRprojectsaim at benefitting the community from low socio-economic strata, across the state of Kerala and are


identifiedasvulnerable.Theseprojectsareattemptingforinclusivegrowth&equitabledevelopmentofsuchcommunities.

2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any other organization?

CSL largely collaborates with various NGOs,foundations, government agencies, and otherprofessionalagenciesforexecutionoftheprojectontheground.

3. Have you done any impact assessment of your initiative?

Yes. Impact assessment is crucial to view the effectof the activity conducted. CSL conducts impactassessmentasapartoftheprojectforthemajorityofprojects.

4. What is your company’s direct contribution to community development projects- Amount in INR and the details of the projects undertaken.

In financial year 2017-18, the contribution tocommunity development projectswas` 8.57 crores.Please refer to theAnnual Report on CSRActivitiesformingpartofthisAnnualReport.

5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain in 50 words, or so.

Engagement of the community is paramount forsustaining any community development program onground.Weensureengagementofthecommunityatthe very planning stage and thereafter induct themat the implementation level. This not only ensuresacceptanceoftheprogrammeongroundbutalso itscontinuityandsustainability.

Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner

1. What percentage of customer complaints/consumer cases are pending as on the end of financial year.

The Company’s customers are large corporatehouses, corporations both national and internationalorMinistriesof theCentralGovernment.During theyearunderreviewtheCompanyhasnotreceivedanyComplaints.

All the contracted vessels are conducted with aCustomer Satisfaction Survey, and feedbacks aretakenfromOwnerswillingtosharetheirexperience.The surveys are conducted by an independent thirdpartyfirminordertohaveopen&genuinefeedbackfrom the customer.

Customer Satisfaction Survey is conducted in twophasesforthevesselscontracted,oneonConstructionPhase(PhaseI)andoneaftercompletionofwarrantyperiod (Phase II). Phase I is intended for an interimfeedback during the ongoing construction stage,in order to identify any concerns from the Ownerduring the construction phase. This also helps Yardto understand the areaof concerns (if any), and caninitiateactionsappropriatelyforimprovementstothelevel ofOwnerexpectations.Phase II survey is afterthe delivery and the completion of warranty periodof the vessel where Owner would have sufficienttime to understand the performance & quality ofconstruction,whichwillprovideanoverallperspectiveoftheirsatisfactionforthenewbuildingcontracted&delivered.

Thesurveysconductedcoverallphasesofconstructionstarting from the pre-contract stage. Feedbacks arerequested from Owners regarding approachability,accessibility,qualityofconstruction,overall technicalcapabilitiesoftheYard&PostDeliveryservices.Theindependentagencysubmitsareportineachfinancialyear for the surveys conducted, and elaboratesregardingthefeedbacksfromvariousclients,specifyingthe areaswhere shipyard is performingwell& areaswhereimprovementsaresuggested.Thisindependentreportprovidesascopetounderstandthestrength&weaknessoftheYardfromtheOwnerperspective,andismuch helpfulwhile approaching the same client /similar clients.

2. Does the company display product information on the product label, over and above what is mandated as per local laws? Yes/No/N.A. /Remarks(additional information)

Not Applicable as it engages in Shipbuilding andShiprepairoperations.

3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year. If so, provide details thereof, in about 50 words or so.

NocaseshavebeenfiledbyanystakeholdersagainsttheCompany regardingunfair tradepracticesduringtheyearunderreview.

4. Did your company carry out any consumer survey/ consumer satisfaction trends?

No.TheCompany, however, ensure that complaints,if any, received from any stakeholders are promptlyattendedto.


REPORT On CORPORATE gOVERnAnCE

Company’s Philosophy on Corporate Governance

1. CochinShipyardrecognizestheimportanceofCorporateGovernancetoemergeasamodelcorporate.TheCompanyhasadoptedpoliciesandprocedureswhichareaimedateffectivelydischargingitsresponsibilitiestovariousstakeholdersviz.shareholders,creditors,customers,employeesandsocietyatlarge.CSLstronglybelievesthattheCompanycanemergeasastronggloballeaderonlybyfollowinggood&soundCorporateGovernanceprinciples.TheCompanyhasbeenrated‘Excellent’inCorporateGovernancepracticesaspertheevaluationcriteriaprescribedbytheDepartmentofPublicEnterprisesconsistentlyforthelastseveralyears.

Board of Directors

2. TheBoardofDirectorsofCochinShipyardLimitedplaysapivotalroleinensuringgoodCorporateGovernance.ThecompositionoftheBoardoftheCompanyisgovernedbytheprovisionsoftheCompaniesAct,2013(“theAct”)andtheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(the“ListingRegulations”).TheBoardcomprisesofanoptimummixofExecutiveandNon-ExecutiveDirectors.TheBoardhasonewomandirector.HalfoftheBoardcomprisesofIndependentDirectors.ThecompositionoftheBoardasonMarch31,2018isasfollows:-

Sl. No. Name of Director Director Identification

Number (DIN) Category of Directorship

1 ShriMadhuSNair,Chairman&ManagingDirector 07376798 ExecutiveDirector

2 ShriDPaulRanjan,Director(Finance) 06869452 ExecutiveDirector

3 ShriSureshBabuNV,Director(Operations) 07482491 ExecutiveDirector

4 ShriSatinderPalSinghIPS* 07490296 OfficialPartTime(Nominee)Director,GovernmentofIndia

5 ShriEliasGeorgeIAS(Retd.) 00204510 OfficialPartTime(Nominee)Director,Government of Kerala

6 Smt.RoopaShekharRai 07565156 NonOfficialPartTime(Independent)Director7 ShriRadhakrishnaMenon 07518727 NonOfficialPartTime(Independent)Director8 Adv.KrishnaDasE 02731340 NonOfficialPartTime(Independent)Director9 ShriJijiThomsonIAS(Retd.)** 01178227 NonOfficialPartTime(Independent)Director10 ShriPradiptaBanerji** 00630615 NonOfficialPartTime(Independent)Director11 ShriNandaKumaranPuthezhath** 02547619 NonOfficialPartTime(Independent)Director

*TheMinistryofShipping,videletterF.No.SY-11012/1/2017-CSLdatedOctober04,2017appointedShriSatinderPalSinghIPS,JointSecretary(Shipping)asOfficialPartTime(Nominee)DirectorofCSL,inplaceofShriPravirKrishnaIAS.

**MinistryofShippingvideletterF.No.SY-11012/1/2016-CSLdatedJuly15,2017appointedShriJijiThomsonIAS(Retd.),ShriPradiptaBanerjiandShriNandaKumaranPuthezhathasNonOfficialPartTime(Independent)Directors.

3. DisclosureofrelationshipbetweenDirectorsinter-se: Nil

4. NoneofthedirectorsoftheCompanyweremembersinmorethantencommitteesoractasChairpersonofmorethanfivecommitteesacrossalllistedentitiesinwhichheisaDirector.NoneoftheIndependentDirectorsoftheCompanyhelddirectorshipsinmorethansevenlistedcompanies.


5. TheCompaniesAct,2013readwithrelevantRulesmadethereunder,facilitatestheparticipationoftheDirectorintheBoard/Committeemeetingsthroughvideoconferencing.Thedirectorsviz.,ShriPravirKrishnaIASandShriSatinderPalSinghIPShaveavailedthefacilityduringtheperiod.

6. ThemeetingsoftheBoardofdirectorsandcommitteeshavebeenconducted inthemannerasspecified inListingRegulationsandCompaniesAct,2013.

Attendance of Directors at Board Meetings and last Annual General Meeting (AGM)

7. TenBoardMeetingswereheldduringtheyearunderreview.DetailsofattendanceofDirectorsattheBoardMeetingsandAGMheldduring2017-18aregivenbelow

Name of Director2017 2018 AGM

Jul 17, 2017

Apr 27

May 11

Jun 10

Jul 17

Jul 21

Aug 04

Sep 11

Nov 10

Feb 05

Feb 22

ShriMadhuSNair Y Y Y Y Y Y Y Y Y Y YShriPravirKrishnaIAS* @ @ @ - Y - - NA NA NA -ShriSatinderPalSinghIPS NA NA NA NA NA NA NA - Y @ NAShriEliasGeorgeIAS(Retd.) - - - - Y - - - - - -ShriDPaulRanjan Y Y Y Y Y Y Y Y Y Y YShriSunnyThomas** Y Y Y Y Y Y Y Y NA NA YShriSureshBabuNV Y Y Y Y Y Y Y Y Y Y YSmt.RoopaShekharRai Y Y Y Y Y Y Y Y Y Y YShriRadhakrishnaMenon Y Y Y Y Y Y Y Y Y Y YAdv.KrishnaDasE Y Y - Y Y Y Y Y Y Y YShriJijiThomsonIAS(Retd.) NA NA NA - Y Y Y Y Y Y -ShriPradiptaBanerji NA NA NA - Y Y Y - Y Y -ShriNandaKumaranPuthezhath NA NA NA - Y Y Y Y Y Y -

@attendedthroughvideoconferencing *ShriPravirKrishnaIAS,ceasedtobeDirectoroftheCompanywitheffectfromOctober04,2017.**ShriSunnyThomas,superannuatedfromtheservicesoftheCompanyonNovember30,2017.

Other Directorships and Committee positions:

8. ThetotalnumberofDirectorship(s)heldbyDirectorsandthepositionsofMembership/ChairmanshiponCommittees,asonMarch31,2018aregivenbelow:

Name of the Director No. of other Directorship in other public

limited companiesOther Board Committee positions held in

other public limited companiesChairman Member Chairman Member

ShriMadhuSNair 1 - - -ShriSatinderPalSinghIPS - 3 - 2ShriEliasGeorgeIAS(Retd.) - 1 - -ShriDPaulRanjan - 1 - -ShriSureshBabuNV - 1 - -Smt.RoopaShekharRai - - - -ShriRadhakrishnaMenon - - - -Adv.KrishnaDasE - - - -ShriJijiThomsonIAS(Retd.) - - - -ShriPradiptaBanerji - - - -ShriNandaKumaranPuthezhath - 3 2 -

• TheDirectorshipsheldbyDirectorsasmentionedabovedoesnotincludeAlternateDirectorshipsandDirectorshipsinPrivateLimitedCompanies,ForeignCompaniesandCompaniesregisteredundersection8oftheCompaniesAct,2013.

• Memberships/ Chairmanships of only theAudit Committees and Stakeholders Relationship Committees of allPublicLimitedCompaniesandGovernmentCompanieshavebeenconsidered.


9. None of the Directors are inter-se related to eachother.

10. Noneof theDirectorsexcept the followingholdanysharesintheCompanyasonMarch31,2018:

Name of the Director No. of Equity Shares HeldAdv.KrishnaDasE 100ShriRadhakrishnaMenon 30

Independent Directors

11. Independent Directors have been appointed by theMinistryofShipping,Governmentof Indiaforatermof 3 years. The main terms of appointment can beaccessedathttp://www.cochinshipyard.com/dir.htm

12. Familiarizationprogrammefor IndependentDirectorsgenerally form part of the Board process. TheIndependent Directors are updated on an on-goingbasisattheBoard/Committeemeetings,inter-alia,onthefollowing:

– NatureofindustryinwhichtheCompanyoperates;

– Business environment and operational modelof various business divisions of the Companyincludingimportantdevelopmentsthereon;

– Important changes in regulatory frameworkhavingimpactontheCompany.

13. Details of the familiarization programme forIndependentDirectorscanbeaccessedathttp://www.cochinshipyard.com/links/familiarisation%20new.pdf

Meetings of Independent Directors14. AccordingtoScheduleIVtotheCompaniesAct,2013

a separate meeting of the Independent Directorsof the Company was held on February 22, 2018whichwasattendedbyalltheNonOfficialPartTime(Independent)Directors,viz.,Smt.RoopaShekharRai,ShriRadhakrishnaMenon,ShriKrishnaDasE,ShriJijiThomson IAS (Retd.), Shri Pradipta Banerji and ShriNandaKumaranPuthezhath.

Availability of information to the members of the Board15. The Board has complete access to any information

within the Company and to any employee of theCompany. The Board welcomes the presence ofexecutives in the BoardMeetings, who can provideadditional insights into the issuesbeingdiscussed inthemeeting.TheinformationnormallyrequiredtobeplacedbeforetheBoardincludethefollowing:a) Tomakecallsonshareholdersinrespectofmoney

unpaidonshares.b) Toauthorizebuy-backofsecurities.c) Toissuesecuritiesincludingdebentures,inIndia

orabroad.

d) Toborrowmonies.

e) Toinvestfundsofthecompany.

f) To grant loans or give guarantee or providesecurity in respect of loans.

g) ToapprovefinancialstatementandBoard’sReport.

h) Todiversifythebusinessofthecompany.

i) To approve amalgamation, merger orreconstruction.

j) Totakeoveracompanyoracquireacontrollinginterestorsubstantialstakeinanothercompany.

k) Toappointor removekeymanagerialpersonnel(KMP).

l) Toappointinternalauditorandsecretarialauditor.

m) GeneralnoticesofinterestofDirectors.

n) TermsofreferenceofBoardCommittees.

o) Minutes of meetings of Audit Committee andother Committees of the Board, resolutionspassed by circulation and also the minutes ofBoardmeetingofsubsidiarycompany.

p) Annual operating plans of businesses, capitalbudgetsandanyupdates.

q) Quarterly results of the Company and itsoperatingdivisionsorbusinesssegments.

r) Declarationofdividend.

s) Saleofmaterialnatureofinvestmentsandassets,whichisnotinnormalcourseofbusiness.

t) Quarterlydetailsof foreignexchangeexposuresandthestepstakenbythemanagementtolimittherisksofadverseexchangeratemovement, ifmaterial.

u) Internalauditfindingsandexternalauditreports(throughtheAuditCommittee).

v) Statusofbusinessriskexposures,itsmanagementandrelatedactionplans.

w) Details of any joint venture or collaborationagreement.

x) Show cause, demand, prosecution notices andpenaltynoticeswhicharemateriallyimportant.

y) Fatalorseriousaccidents,dangerousoccurrences,anymaterialeffluentorpollutionproblems.

z) Allpolicymattersdeliberatedandintroducedforimplementation.

aa) Any material default in financial obligations toandbytheCompany,orsubstantialnon-paymentforgoodssoldbytheCompany.


bb) Any issue which involves possible public orproduct liability claims of substantial nature,includinganyjudgmentororder,whichmayhavepassedstricturesontheconductoftheCompanyor taken an adverse view regarding anotherenterprisethatcanhavenegativeimplicationsonthe Company.

cc) Theinformationonrecruitmentandremunerationof senior officers just below the Board levelincluding appointment or removal of ChiefFinancialOfficerandtheCompanySecretary.

dd) Non-compliance of any regulatory, statutory orlisting requirements and shareholders servicesuchasnon-paymentofdividend,delayinsharetransfer etc.

ee) Significant labour problems and their proposedsolutions.AnysignificantdevelopmentinHumanResources / Industrial Relations front likeimplementationofVoluntaryRetirementScheme(VRS),etc.

ff) Capitalbudgetsandanyupdates.gg) Transactions that involve substantial payment

towards goodwill, brand equity, or intellectualproperty.

hh) Quarterlydetailsofforeignexchangeexposuresandthestepstakenbymanagementtolimittherisksofadverseexchangeratemovement,ifmaterial.

Board material distributed in advance

16. Notice of each Board Meeting and CommitteeMeeting is sent to all the members not less thanseven days in advance exceptwhen it is convenedas emergency meeting. The agenda notes for eachBoard/Committeemeeting isdrafted inconsultationwiththeChairmanandarecirculatedtotheDirectorsnotlessthansevendaysinadvanceexceptwhenitisconvenedasemergencymeetingwiththeconcurrenceof all Board/Committee members. All materialinformation is incorporated in the agenda papersfor facilitating meaningful and focused discussionsatthemeeting.Whereit isnotpracticabletoattachany document to the agenda, the same is tabled atthemeetingwithspecificreferencetothesubjectintheagenda.Inspecialandexceptionalcircumstances,additionalorsupplementaryitem(s)ontheagendaarepermittedwiththeconsentofallDirectorspresentatthemeeting.

Recording Minutes of proceedings at Board and Committee meeting

17. The Company Secretary records the minutes of theproceedingsofeachBoardandCommitteemeetings.

DraftminutesarecirculatedtoallthemembersoftheBoard/Committee for their comments within fifteendays from the conclusion of the Meeting. The finalminutesareenteredintheminutebookwithin30daysfromconclusionofthemeeting.

Post Meeting Follow-up Mechanism

18. The important decisions taken at the Board/Committeemeetings are promptly communicated tothe departments/divisions concerned. Action takenreport on the decisions/minutes of the previousmeeting(s) is placed at the immediately succeedingmeetingoftheBoard/Committee.

Compliance

19. The Company Secretarywhile preparing the agendanotes,minutesetc.ofthemeeting(s)isresponsibleforandisrequiredtoensureadherencetoalltheapplicablelaws and regulations including the Companies Act,2013 readwith the Rules issued thereunder as alsothe Secretarial Standards issued by the Institute ofCompany Secretaries of India and notified by theGovernmentofIndia.

Board Committees

20. During the financial year 2017-18, the Board ofCSL had eight Committees viz. Audit Committee,Nomination&RemunerationCommittee,Contracts&CapexCommittee,CorporateSocialResponsibilityandSustainable Development Committee, StakeholdersRelationship Committee, Committee for NewTechnology, Strategy and New Initiatives, ShareAllotmentCommitteeandShareTransferCommittee.

Audit Committee

21. TheAuditCommitteeofCSLwasformedonAugust21,2008andwasreconstitutedonSeptember21,2012,December 13, 2012, March 30, 2015 and May 07,2016.ThepresentAuditCommitteewasconstitutedvideCircularResolutionNo.CR03/2017adoptedonAugust30,2017.

Terms of reference of Audit Committee

22. ThefollowingarethetermsofreferenceoftheAuditCommittee:

(i) Oversightofthelistedentity’sfinancialreportingprocess and the disclosure of its financialinformationtoensurethatthefinancialstatementiscorrect,sufficientandcredible;

(ii) Recommendationforappointment,remunerationand terms of appointment of auditors of ourCompany based on the order of Comptroller &AuditorGeneralofIndia;


(iii) Approvalofpaymenttostatutoryauditorsforanyotherservicesrenderedbythestatutoryauditors;

(iv) Reviewing, with the management, the annualfinancialstatementsandauditor’sreportthereonbeforesubmissiontotheBoardforapproval,withparticularreferenceto:

(a) Matters required to be included in thedirector’s responsibility statement to beincluded in the Board’s report in terms ofclause (c)of sub-section (3)of section134oftheCompaniesAct,2013;

(b) Changes, if any, in accounting policies andpracticesandreasonsforthesame;

(c) Major accounting entries involvingestimatesbasedontheexerciseofjudgmentbymanagement;

(d) Significantadjustmentsmadeinthefinancialstatementsarisingoutofauditfindings;

(e) Compliance with listing and other legalrequirementsrelatingtofinancialstatements;

(f) Disclosureofanyrelatedpartytransactions;

(g) Modifiedopinion(s)inthedraftauditreport;

(v) Reviewing,with themanagement, the quarterlyfinancial statements before submission to theBoardforapproval;

(vi) Reviewing,withthemanagement,thestatementof uses/application of funds raised through anissue(publicissue,rightsissue,preferentialissue,etc.),thestatementoffundsutilizedforpurposesother than those stated in theofferdocument/prospectus/notice and the report submitted bythemonitoringagency,monitoringtheutilisationofproceedsofapublicorrightsissue,andmakingappropriate recommendations to the Board totakeupstepsinthismatter;

(vii) Reviewing and monitoring the auditor’sindependence and performance, andeffectivenessofauditprocess;

(viii) Approval or any subsequent modification oftransactionsofourCompanywithrelatedparties;

(ix) Scrutinyofinter-corporateloansandinvestments;

(x) Valuation of undertakings or assets of ourCompany,whereveritisnecessary;

(xi) Evaluationof internalfinancial controls and riskmanagementsystems;

(xii) Reviewing, with the management, performanceof statutory and internal auditors, adequacy oftheinternalcontrolsystems;

(xiii)Reviewing the adequacy of internal auditfunction, if any, including the structure of theinternalauditdepartment,staffingandseniorityoftheofficialheadingthedepartment,reportingstructure coverage and frequency of internalaudit;

(xiv) Discussionwithinternalauditorsofanysignificantfindingsandfollowupthereon;

(xv) Reviewing the findings of any internalinvestigationsbytheinternalauditorsintomatterswherethereissuspectedfraudorirregularityora failure of internal control systems of a material natureandreportingthemattertotheBoard;

(xvi) Discussion with statutory auditors before theauditcommences,aboutthenatureandscopeofauditaswellaspost-auditdiscussiontoascertainanyareaofconcern;

(xvii)To look intothereasonsforsubstantialdefaultsin the payment to the depositors, debentureholders,shareholders(incaseofnon-paymentofdeclareddividends)andcreditors;

(xviii)To review the functioning of the whistle blowermechanism;

(xix) Approvalofappointmentofchieffinancialofficerafterassessingthequalifications,experienceandbackground,etc.ofthecandidate;

(xx) Reviewthefollowinginformation:

(a) Management discussion and analysis offinancialconditionandresultsofoperations;

(b) Statement of significant related partytransactions (as defined by the auditcommittee),submittedbymanagement;

(c) Management letters/letters of internalcontrolweaknessesissuedbythestatutoryauditors;

(d) Internal audit reports relating to internalcontrolweaknesses;and

(e) The appointment, removal and terms ofremuneration of the chief internal auditorshall be subject to review by the auditcommittee;

(f) Statementofdeviations:

(a) Quarterly statement of deviation(s)includingreportofmonitoringagency,if applicable, submitted to stockexchange(s)intermsofregulation32(1)oftheSEBIListingRegulations;and


(b) Annual statement of funds utilized for purposes other than those stated in the offer document/prospectus/noticeintermsofregulation32(7)oftheSEBIListingRegulations.

(xxi) ToreviewthefollowupactionontheauditobservationsoftheC&AGaudit;(xxii)Recommendtheappointment,removalandfixingofremunerationofCostAuditorsandSecretarialAuditors;

and(xxiii)CarryingoutanyotherfunctionasspecifiedbytheBoardfromtimetotime.

Powers of the Audit Committee

23. TheCommitteeisentrustedwiththefollowingpowers:(a) Toinvestigateanyactivitywithinitstermsofreference;(b) Toseekinformationonandfromanyemployee;(c) Toobtainoutsidelegalorotherprofessionaladvice,subjecttotheapprovaloftheBoardofDirectors;and(d) Tosecureattendanceofoutsiderswithrelevantexpertise,ifitconsidersnecessary.

24. TherecommendationsoftheAuditCommitteeonanymatterrelatingtothefinancialmanagement,includingtheauditreport,shallbebindingontheBoard.

25. IftheBoarddoesnotaccepttherecommendationsoftheAuditCommittee,itshallrecordthereasonsthereofandcommunicatesuchreasonstotheshareholders.

Constitution

26. AsonMarch31,2018,theAuditCommitteeisconstitutedwithShriRadhakrishnaMenon,NonOfficialPartTime(Independent)DirectorasChairman,ShriKrishnaDasE,NonOfficialPartTime(Independent)Director,andShriNandaKumaranPuthezhath,NonOfficialPartTime(Independent)Directorasmembers.

27. AuditCommitteemeetingsarealsoattendedbyDirector(Finance),representativesofSecretarialAuditors,StatutoryAuditorsandInternalAuditorsoftheCompanyasinvitees.TheInternalAuditfunctionhasbeenoutsourcedtoafirmofCharteredAccountants.TheCompanySecretaryactsastheSecretarytotheCommittee.

Audit Committee meetings held during 2017-18 and attendance:

28. TheCommitteemetsixtimesduringtheyear2017-18onMay11,2017,June10,2017,July17,2017,September11,2017,November10,2017andFebruary05,2018.Thenecessaryquorumwaspresentat thesemeetings.Theattendanceduringthesemeetingswereasfollows:

Name of the Director May 11, 2017

Jun 10, 2017

Jul 17, 2017

Sep 11, 2017

Nov 10, 2017

Feb 05, 2018

ShriRadhakrishnaMenon

ShriKrishnaDasE

ShriEliasGeorge,IAS(Retd.) × × × NA NA NAShriNandaKumaranPuthezhath NA NA NA

Nomination & Remuneration Committee

29. The Nomination & Remuneration Committee of Cochin Shipyard Limited was constituted vide CircularResolution adopted on December 13, 2008 and was reconstituted on May 13, 2014, March 30, 2015, May07,2016,andonMay06,2018.

Terms of reference

30. ThefollowingaretermsofreferenceoftheNomination&RemunerationCommittee:

(i) Decide on the annual bonus/ performance pay/ variable pay pool and policy for its distribution across theexecutivesandnon-unionizedsupervisorsofourCompany;

(ii) Formulation andmodification of schemes for providing perks and allowances for officers and non-unionizedsupervisors;


(iii) Any new scheme of compensation like medicalscheme, pension etc. to officers, non-unionizedsupervisorsandtheemployeesas thecasemaybe;and

(iv) Exercisingsuchotherrolesassignedto itbytheprovisionsoftheSEBIListingRegulationsandanyother laws and their amendments fromtime totime.

Constitution

31. AsonMarch31,2018,theCommitteecomprisesofShriKrishnaDasE,NonOfficial PartTime (Independent)Director as Chairman, Shri Elias George IAS (Retd.),Official Part Time (Nominee) Director, Smt. RoopaShekhar Rai, Non Official Part Time (Independent)Director,asmembers.

Nomination & Remuneration Committee meetings held during 2017-18 and attendance:

32. Threemeetings of theNomination& RemunerationCommittee were held during 2017-18 on May11,2017,September27,2017andFebruary05,2018. The necessary quorumwas present at thesemeetings. The attendance during these meetingswereasfollows:

Sl No

Name of the Member

May 11, 2017

September 27, 2017

February 05, 2018

1 Shri Krishna DasE

2 ShriEliasGeorgeIAS(Retd.)

× × ×

3 Smt. Roopa ShekharRai

Remuneration Policy

33. Under Article 21(a) of the Articles of Associationof the Company, the Directors shall be paid suchremunerationasthePresidentofIndiamayfromtimetotimedetermine.ThepayandallowancesofBoardlevelexecutives are paid in accordancewith the terms ofappointment,DepartmentofPublicEnterprises(DPE)Guidelines on the above subject and other benefitsandperquisites in accordancewith the rules ofCSL.TheremunerationofbelowBoardlevelexecutivesandnon-unionized supervisors is as per DPE guidelinesand as approvedby administrativeministry (MinistryofShipping).Theremunerationofworkersareasperthe long term settlement between themanagementandrecognizedtradeunions.

34. Details of Remuneration paid to the Chairman &ManagingDirectorandtheWholeTimeDirectorsareplacedatEnclosure I to this report.

Sitting fees

35. The Non Official Part Time (Independent) Directorsare paid sitting fees at the rate of ` 15,000/- forattending each meeting of the Board or Committeethereof. The Official Part Time (Nominee) Directorsarenotpaidanyremuneration.ThecriteriaformakingpaymenttoNon-ExecutiveDirectorsisavailableintheCompany’swebsiteatthefollowinglink:https://www.cochinshipyard.com/dir.htm.

36. SittingfeespaidtotheNonOfficialPartTimeDirectorsfor2017-18areasfollows:

SlNo Name Fees(in`)

1 ShriRadhakrishnaMenon 3,30,000

2 ShriKrishnaDasE 2,70,000

3 Smt.RoopaShekharRai 2,85,000

4 ShriJijiThomsonIAS(Retd.) 1,05,000

5 ShriPradiptaBanerji 75,000

6 ShriNandaKumaranPuthezhath 1,50,000

37. Since the Non Official Part Time (Independent)DirectorsareappointedbythePresidentofIndia,theevaluation of performance of such Directors is alsodonebytheGOI.

Stakeholders Relationship Committee

38. In connection with the proposals for IPO and listingofequitysharesofCSL, theStakeholdersRelationshipCommittee, a sub-Committee of the Board wasconstituted vide resolution no 227/08 at the 227thBoardMeetingheldonSeptember20,2016.ThepresentCommitteewasconstitutedvideCircularResolutionNo.CR03/2017adoptedonAugust30,2017.

Terms of reference

39. FollowingisthetermsofreferenceoftheStakeholdersRelationshipCommittee:

(i) The Stakeholder Relationship Committee shallconsiderandresolvethegrievancesofthesecurityholdersof the listedentity including complaintsrelatedtotransferofshares,non-receiptofannualreportandnon-receiptofdeclareddividends.

Constitution

40. AsonMarch31,2018,theCommitteecomprisesofShriKrishnaDasE,NonOfficial PartTime (Independent)Director asChairmanof theCommittee, ShriDPaulRanjan,Director (Finance)andShriSureshBabuNV,Director(Operations),asmembers.


Stakeholders Relationship Committee meetings held during the year and attendance:

41. Nomeetingwasconductedduringtheyear2017-18.

Name, designation and address of the Compliance Officer

Smt. Kala VCompanySecretary&ComplianceOfficerAdministrativeBuilding,CochinShipyardLimited,Perumanoor,Kochi, Kerala–682015Tel:+91(484)2501306,Fax:+91(484)2384001 Email:[email protected]:www.cochinshipyard.com

Status of Investor Complaints as on March 31, 2018 and reported under Regulation 13(3) of the Listing Regulations is as under:

ComplaintsasonApril01,2017 0Receivedduringtheyear 397Resolvedduringtheyear 396Notsolvedtothesatisfactionofshareholders 0PendingasonMarch31,2018 1

Contracts & Capex Committee

42. TheContractsCommitteeoftheBoardwasconstitutedvidecircularresolutionno01/2010adoptedonMarch09, 2010. The Capex Committee of the Board wasconstitutedvideCircularResolutionNo.CR07/2012and adopted at the 203rd Board Meeting held onDecember13,2012.TheCompanydecidedtomergeContracts Committee and Capex Committee andfurtheritwasnamedasContracts&CapexCommittee.TheContracts&CapexCommitteewasre-constitutedvide Circular ResolutionNo.01/2014 passed on July05, 2014, Circular Resolution No.02/2015 adoptedonMarch 30, 2015 and Circular Resolution No. CR03/2017 adopted on August 30, 2017 and CircularResolution No.CR 02/2018 adopted on May 06,2018.ThepresentCommitteewasconstitutedbywayof Circular Resolution No. CR 02/2018 adopted onMay06,2018.

Terms of reference43. The following are the terms of reference of the

Contracts&CapexCommittee:

(a) Examine and recommend the annual capitalbudget.

(b) QuarterlyreviewandreporttoBoardoncapitalprojects.

(c) Quarterly review and report to Board onshipbuildingprojects.

(d) To advise on various business models adoptedin thecourseofoperationssuchasMOUs,JVs,SPVs,worksharearrangementetc.

(e) Toreviewproposalsforamendmenttocontractsduring the pendency of shipbuilding projectswhich has a financial implication above 10%of the contractual value and make suitablerecommendationstotheBoard.

(f) AnyothermatterthatmaybereferredtoitfromtimetotimebyCMD,CSL.

Constitution

44. AsonMarch31,2018, theCommitteecomprisesofShriJijiThomson,NonOfficialPartTime(Independent)Director as Chairman, Shri D Paul Ranjan, Director(Finance) and ShriNanda Kumaran Puthezhath,NonOfficialPartTime(Independent)Director,asmembers.

Contracts & Capex Committee meetings held during the year and attendance:

45. One meeting of Contracts & Capex Committeewas held during 2017-18 on November 10, 2017.The necessary quorumwas present at the meeting.Theattendanceduringthemeetingwasasfollows:

Sl No Name of the Member November 10, 20171 ShriJijiThomson 2 ShriDPaulRanjan 3 ShriSunnyThomas*

4 ShriNandaKumaranPuthezhath

*ShriSunnyThomas,superannuatedfromtheservicesoftheCompanyonNovember30,2017.

Corporate Social Responsibility & Sustainable Development (CSR & SD) Committee46. A Sub-committee of the Board was constituted vide

resolutionno181/09atthe181stmeetingoftheBoardheldonSeptember05,2008todecideonthemattersrelatingtoCorporateSocialResponsibilityinCPSEs.

47. The Sustainable Development Committee wasconstituted at the 197th Board Meeting heldon November 23, 2011. The DPE vide OM No.3(9)/2010-DPE(MoU)datedSeptember23,2011hasissueddetailedguidelinesonSustainableDevelopmentinCPSEs.

48. Company decided to merge the CorporateSocial Responsibility Committee and SustainableDevelopmentCommitteetodecidethemattersrelatingtoCSRactivitiesinlinewiththeguidelineslaiddownunderScheduleVIIof theCompaniesAct2013.Thepresent CSR & SD Committeewas constituted videCircularResolutionNo.CR/02/2018adoptedonMay06,2018.


Terms of reference

49. ThefollowingarethetermsofreferenceoftheCorporateSocialResponsibility&SustainableDevelopmentCommittee:(i) RecommendCSRandsustainabilitydevelopmentpolicytotheBoard;(ii) Recommendplanofactionandprojectstobeinitiatedintheshort,mediumandlongtermforCSRandsustainability

development;(iii) TorecommendtheannualCSRandsustainabilitydevelopmentplanandbudget;and(iv) PeriodicreviewofCSRandsustainabilitydevelopmentpolicy,plansandbudgets.

Constitution

50. AsonMarch31,2018,theCommitteecomprisesofSmt.RoopaShekharRai,NonOfficialPartTime(Independent)DirectorasChairpersonoftheCommittee,ShriRadhakrishnaMenon,NonOfficialPartTime(Independent)DirectorandShriDPaulRanjan,Director(Finance)asmembers.

CSR & SD Committee meetings held during the year and attendance

51. SixmeetingsofCSR&SDCommitteewereheldduringtheyear2017-18onApril27,2017,May11,2017,September11,2017,November10,2017,January09,2018andMarch22,2018.Theattendanceduringthesemeetingswereasfollows:

Sl. No. Name of Director Apr 27 2017

May 11 2017

Sep 11 2017

Nov 10 2017

Jan 09 2018

Mar 22 2018

1 Smt.RoopaShekharRai

2 ShriRadhakrishnaMenon

3 ShriDPaulRanjan

4 ShriSunnyThomas* NA NA

*ShriSunnyThomas,superannuatedfromtheservicesoftheCompanyonNovember30,2017.

Committee for New Technology, Strategy and New Initiatives

52. The Committee for New Technology, Strategyand New Initiatives was constituted vide CircularResolutionNo. CR 03/2017 adopted onAugust 30,2017andwas reconstitutedvideCircularResolutionNo.CR/02/2018adoptedonMay06,2018.

Terms of reference

53. FollowingisthetermsofreferenceoftheCommitteeforNewTechnology,StrategyandNewInitiatives:

(i) The Committee shall deliberate on adoption ofnewtechnology,strategiesandnewinitiatives.

Constitution

54. AsonMarch31,2018,theCommitteecomprisesofShriPradiptaBanerji,NonOfficialPartTime(Independent)Director as Chairman of the Committee and ShriJiji Thomson, Non Official Part Time (Independent)Director,asmember.

Meetings of the Committee for New Technology, Strategy and New Initiatives held during the year and attendance:

55. Nomeetingwasconductedduringtheyear2017-18.

Share Allotment Committee

56. The ShareAllotment Committee of Cochin ShipyardLimitedwasconstitutedvideResolutionNo.236/05atthe236thBoardMeetingheldonAugust04,2017asonetimecommitteeforthepurposeofallotmentofequitysharespursuanttoInitialPublicOffer (IPO)ofthe Company.

Terms of reference

57. The Share Allotment Committee was authorised totakeallthenecessarysteps,actionsanddecisionsasrequiredinconnectionwiththeissueandallotmentofEquitySharestothesubscribersintheIPOtransactionoftheCompanyandtodoallsuchacts,deeds,mattersandthingsandtofinaliseandexecuteallsuchdeeds,documentsandwritingsasitmaydeemnecessaryorexpedientinthisregard.

Constitution58. The Committee comprised of Shri Madhu S Nair,

Chairman&ManagingDirector, Shri.D Paul Ranjan,Director (Finance), Shri Sunny Thomas, Director(Technical) and Shri Suresh Babu N V, Director(Operations)asmembers.


Share Allotment Committee meetings held during 2017-18 and attendance:59. TheShareAllotmentCommitteemeetingwasheldon

August09,2017.Thenecessaryquorumwaspresentat the meeting. The attendance during the meetingwasasfollows:

Sl No Name of the Member Aug 09, 20171 ShriMadhuSNair

2 ShriDPaulRanjan

3 Shri Sunny Thomas

4 ShriSureshBabuNV

Share Transfer Committee

60. The Share Transfer Committee of Cochin ShipyardLimitedwasconstitutedvideResolutionNo.237/19Batthe237thBoardMeetingheldonSeptember11,2017.

Terms of reference

61. The following are terms of reference of the ShareTransferCommittee:(i) Toapprovesharetransfersinphysicalmode;(ii) Toapprovesharetransmissions;(iii) To approve dematerialisation of shares and

rematerialisation of shares and to issue sharecertificatesthereafter;

(iv) Toissueduplicatesharescertificates;(v) To approve format of new share certificates,

printingofblanksharecertificatesasandwhenrequired;and

(vi) To approve and issue fresh share certificatebyway of split or consolidation of the existingcertificateorinanyothermanner.

Constitution

62. AsonMarch31,2018, theCommitteecomprisesofShriDPaulRanjan,Director(Finance)andShriSureshBabuNV,Director(Operations)asmembers.

Share Transfer Committee meetings held during 2017-18 and attendance:

63. TwomeetingsoftheShareTransferCommitteewereheldduring2017-18onJanuary08,2018andJanuary23, 2018. Necessary quorum was present at thesemeetings.Theattendanceduringthesemeetingswereasfollows:

Sl No Name of the Member January

08, 2018January

23, 20181 ShriDPaulRanjan

2 ShriSureshBabuNV

General Body Meetings

64. The date, time and venue of the last three AnnualGeneralMeetingswereasfollows:

Year Date Time VenueSpecial

resolution passed

2016-17

Jul17,2017

09:30Hrs

AdministrativeBuilding,CochinShipyardPremises,Perumanoor,Cochin682015

Nil

2015-16

Sep20,2016

16.00Hrs


4

2014-15

Sep25,2015

10.00Hrs


1

Postal Ballot

65. DuringtheFY2017-18,noresolutionwasputthroughbypostalballot.

66. None of the business proposed to be transacted inthe ensuing AGM requires the passing of a SpecialResolutionbywayofpostalballot.

Means of Communication

67. All price-sensitive information andmatters that arematerialtoshareholderaredisclosedtotherespectiveStock Exchanges, where the securities of theCompanyarelisted.AllsubmissiontotheExchangesare made through the respective electronic filingsystems.

68. Thefinancialresultsforthequarter/half-year/yearwerepublishedasunder:

Quarterly / half-year / year In the month ofQuarterendingJune30,2017 SeptemberQuarter/half-yearending September30,2017 November

QuarterendingDecember31,2017 February

YearendingMarch31,2018 May

69. Quarterly/half-yearly/annual results, notices andinformation relating to General Meetings, etc. arepublished in leading newspapers viz., The Economic


Times(AllIndiaedition),Mathrubhumi(Cochinedition)and Malayala Manorama (Cochin edition) and arenotifiedtotheStockExchangesasrequiredundertheListingRegulations.

70. The quarterly/half-yearly/annual financial resultsandothercommunicationtoshareholdersandStockExchanges, inter-alia, presentations to institutionalinvestors & analysts, press releases etc., aremade available in the Company’s website www.cochinshipyard.comunder ‘investorscorner’ section.TheyarealsofiledwiththeNationalStockExchangeof India Limited (NSE) through NSE ElectronicApplication Processing System (NEAPS) and withBombay Stock Exchange Limited (BSE) throughBSEOnlinePortal.

71. TheManagement hold quarterly briefswith analystsandinstitutional investors.Thepresentationmadetothe institutional investorsandanalysts forquarterly/annualresultsareavailableontheCompany’swebsiteunder‘InvestorsCorner’.

General Shareholder Information

AnnualGeneralMeeting–date,time,venue:

72. 46th Annual General Meeting (AGM): 11.00 hrs,August 14, 2018 at Kerala Fine Arts Society Hall,Foreshore Rd, Pallimukku, Ernakulam, Kerala – 682016

73. FinancialYear:April01,2017toMarch31,2018

Dividend Payment:

74. The final dividend for the year ended March 31,2018ifapprovedattheAGM,willbepaidonorafter

August 20, 2018. Dividendwarrants in respect ofsharesheld inelectronic/dematerializedformwillbepostedtothebeneficialownersattheiraddressaspertheinformationfurnishedbyNSDLandCDSLasontherecorddate.

75. The particulars of dividend declared in the previousthreefinancialyearsaregivenbelow:

Financial Year Dividend Per Share (INR)2014-15 1.502015-16 7.652016-17 8.97

Listing of shares and stock code:

76. TheCompany’sequitysharesarelistedatthefollowingStockExchangesandlistingfeesfortheyear2017-18hasbeenpaidtotheStockExchanges.

Name and address of the Stock Exchange Stock Code

BSELimitedPhirozeJeejeebhoyTower,DalalStreet,Mumbai–400001

540678

NationalStockExchangeofIndiaLimitedExchangePlaza,5thFloor,Bandra-KurlaComplex,Bandra(East),Mumbai–400051

COCHINSHIP

77. The International Securities IdentificationNumber (ISIN) for the Company’s shares is INE704P01017

78. MarketPricedata–high,lowduringeachmonthinthelastfinancialyear(i.e.yearunderreview):

Price and volume of shares traded

Month/ YearBSE Limited National Stock Exchange of India Limited

High (INR) Low (INR) Volume (Nos.) High (INR) Low (INR) Volume (Nos.)Aug 2017* 575.00 435.00 76,23,370 575.00 435.00 13,81,980

Sep 2017 580.00 511.10 32,85,626 579.80 511.00 1,87,93,173

Oct 2017 597.40 514.00 33,63,083 597.80 515.00 2,13,58,045

Nov 2017 598.90 539.65 9,68,696 599.00 541.00 77,14,365

Dec 2017 573.00 525.00 4,43,950 574.00 523.55 32,51,896

Jan 2018 569.75 531.35 9,07,288 570.00 532.00 60,72,718

Feb 2018 544.80 501.05 3,45,999 544.70 500.00 29,63,353

Mar 2018 537.50 460.00 3,43,556 537.90 480.00 26,23,527

* EquityshareswerelistedonAugust11,2017.


CSL vs NSE NIFTY CSL vs BSE SENSEX

Details of securities suspended: Not applicable.

Registrar and Share Transfer Agents (RTA):

LinkIntimeIndiaPrivateLimited,Surya,35,MayflowerAvenue,BehindSenthilNagar,SowripalayamRoad,Coimbatore,TamilNadu–641028Tel:04222315792;Fax:04222314792E-mail:[email protected]

Performance in comparison to broad based indices:

Share Transfer System

79. The Company’s shares being in the compulsorydemat list, are transferable through the depositorysystem. However, shares held in physical form areprocessed by its Registrar & Share Transfer Agentin co-ordination with the Company and sharecertificates are returned within fifteen days fromthedateof receiptof the transferby theCompanyprovidedthat thetransferdocumentsarecompletein all respects.

Distribution of Shareholding:

80. Distributionofshareholding(asonMarch31,2018)

No. of shares heldMembers Shares

No. % No. %1-500 1,68,182 98.5971 73,10,903 5.3782

501-1000 1,261 0.7393 10,02,873 0.73781001-2000 517 0.3031 7,68,844 0.56562001-3000 189 0.1108 4,75,998 0.35023001-4000 76 0.0446 2,68,324 0.19744001-5000 93 0.0545 4,17,870 0.30745001-10000 96 0.0563 7,01,931 0.5164>10000 161 0.0944 12,49,89,257 91.9471

Total 1,70,575 100.0000 13,59,36,000 100.0000


Dematerialisation of shares and liquidity

81. The Company’s shares are compulsorily traded indematerialized form and are available for trading onboththedepositories,viz.NSDLandCDSL.

Percentageofsharesheldin:-

Physicalform : 0

ElectronicformwithNSDL : 4.02

ElectronicformwithCDSL : 95.98

TheCompany’ssharesareregularlytradedontheBSEandNSE.

Outstanding Global Depository Receipts (GDRs) or American Depository Receipts (ADRs) or warrants or any convertible instruments, conversion date and likely impact on equity: None.

Commodity price risk or foreign exchange risk and hedging of activities:

82. TheCompanyhasformulatedForexRiskManagementPolicy duly approved by the Board and the Forexexposures are being hedged depending upon themarket conditions. Considering the complexityof Forex market operations, A.V. Rajwade & Co, areputed and well known Forex consulting firm hasbeenappointedastheForexconsultantssince2010to adviseCSL regardingForexhedging transactions.They advise CSL on need basis and also brief theBoardperiodically.

83. Tokeeptheminimumimpactduetoadverseexchangevariations, the Company is keeping a constantwatch on the Forex market fluctuations and hasbeen exploring various options of foreign currencyborrowingslikeBuyer’sCreditetc.aspartofeffectiveworking capital management. However, since thetotalcostofbuyer’scredit includinghedgingcost ishigherthandepositrateofbanks,wewerenotableto avail any buyer’s credit during the recent times.However,variousoptionsarebeing looked intoandacontinuouswatchonthesameisbeingkept.Statusof the forex exposure and the hedging position isreviewedbytheAuditCommitteeandtheBoardonaquarterlybasis.

Plant Locations:

Kochi

• Perumanoor,ErnakulamDistrict,Kochi–682015

• International Ship Repair Facility: M/s. Cochin PortTrust,WillingdonIsland,Kochi–682009

Address for Correspondence:

CompanySecretary&ComplianceOfficerAdministrativeBuilding,CochinShipyardLimited,Perumanoor,Kochi,Kerala–682015Tel:+91(484)2501306,Fax:+91(484)2384001Email:[email protected]:www.cochinshipyard.com

Other Disclosures

RelatedPartyTransactions84. Duringtheyearunderreview,therewerenomaterially

significant related party transactions that had ormay have conflictwith the interest of the Companyat large. The Company has a policy for relatedparty transactions, which can be accessed at thefollowing link: http://www.cochinshipyard.com/links/Relatedpartytransactionpolicy.pdf

Non-compliancebytheCompany85. No penalties/strictures have been imposed on the

Company by the Sock Exchanges or Securities andExchangeBoardofIndia(SEBI)oranyotherstatutoryauthority on any matter relating to capital marketsduringthelastthreeyears.

VigilMechanismandWhistleBlowerPolicy86. CochinShipyardhasadoptedaWhistleBlowerPolicy

approvedby theBoardat its199thmeetingheldonApril 20, 2012.Cochin Shipyard is aGovernment ofIndiaundertakingandfollowsGovernmentguidelineson reporting of any illegal or unethical practices.Directors/employees/stakeholders/representativebodies of employees are given freedom to report totheir immediate supervisor/Chief Vigilance Officeror Chairman and Managing Director, details of anyviolationof rules, regulations andunethical conduct.TheDirectorsandSeniorManagementarebound tomaintainconfidentialityofsuchreportingandensurethat the whistle blowers are afforded protectionagainst any harassment and not subjected to anydiscriminatory practices. During the period underreport no personnel has been denied access to theAudit Committee. The said policy is available in thewebsiteoftheCompanyathttp://www.cochinshipyard.com/links/CSLVIGILMECHANISMANDWHISTEBL OWERPOLICY.pdf

CodeofConductforPreventionofInsiderTrading

87. The Company has in place a Code of Conduct forPreventionofInsiderTradingforitsDesignatedPersons,


incompliancewiththeSecuritiesandExchangeBoardof India (Prohibition of Insider Trading) Regulations,2015. The Code lays down guidelines,which advisethemonprocedurestobefollowedanddisclosurestobemade,whiledealingwiththesharesoftheCompany,andcautioningthemoftheconsequencesofviolations.TheCodeofConductforPreventionofInsiderTradingishostedonthewebsiteoftheCompanyandcanbeaccessed at: http://www.cochinshipyard.com/links/Policy%20on%20Insider%20Trading%20237BM%2011Sep2017%20-%20website%20upload.pdf

MandatoryRequirements

88. Acomprehensivereportonthestatusofcompliancewithalltheapplicablecorporatelaws,rulesandregulationsbytheCompanyisplacedbeforetheBoardonaquarterlybasis for their information and review. The Companyhas complied with all the mandatory requirementsof the Code of Corporate Governance as specifiedin Regulations 17 to 27 and clauses (b) to (i) of subregulation(2)ofRegulation46oftheListingRegulations.

Non-MandatoryRequirements

89. TheCompany has compliedwith the following non-mandatory requirements of the Listing Regulationsrelating to Corporate Governance. The status ofcompliance with the non-mandatory requirementslistedinRegulation27(1)readwithPartEofScheduleIIoftheListingRegulationsisasunder:

• During the year under review, there is noaudit qualification in the Company’s financialstatements. The Company continues to adoptbest practices to ensure regime of unmodifiedauditopinion.

SubsidiaryCompany:

90. Regulation 16 of the Listing Regulations defines a‘material subsidiary’ as subsidiary, whose income ornet worth exceeds 20% of the consolidated incomeornetworth respectively, of the listedentity and itssubsidiaries in the immediately preceding accountingyear.Underthisdefinition,theCompanydoesnothaveanyunlistedmaterialsubsidiaryincorporatedinIndia.

91. Hooghly Cochin Shipyard Limited is the subsidiarycompany of Cochin Shipyard Limited which wasincorporatedasJointVentureCompanyonOctober23,2017,venturingwithHooghlyDock&PortEngineersLimited.

92. PursuanttotheexplanationunderRegulation16(1)(c)oftheListingRegulations,theCompanyhasformulatedapolicyfordetermining‘materialsubsidiaries’whichisdisclosedontheCompany’swebsiteatthefollowingweb link: http://www.cochinshipyard.com/links/Material%20Subsidiary%20Policy.pdf

Details of compliancewith the requirement of CorporateGovernanceguidelines

93. In terms of Listing Regulations and DPE guidelineson Corporate Governance, Certificate regardingComplianceofCorporategovernanceguidelinesfromPracticingCompanySecretaryisplacedatEnclosure II to this report.

Details of Presidential Directives issued by CentralGovernmentandtheircomplianceduringtheyearandalsoin the last three years

94. The Company has complied with all presidentialdirectivesissuedbyCentralGovernmentregardingtheoperationofPSUs.

95. Items of expenditure debited in books of accounts,whicharenotforthepurposesofthebusiness:Nil

96. Expenses incurred which are personal in natureand incurred for the Board of Directors and TopManagement:Nil

97. The administrative and office expenditure of theCompanyfortheyear2017-18was2.23%ofthetotalexpenditure as against 1.88% in 2016-17. Financialexpenditurestoodat0.59%ofthetotalexpenditurein2017-18,against0.61%inthepreviousyear.

Code of Conduct

98. TheBoardhasprescribedaCodeofConduct(‘Code’)for all the Board members and Senior Managementof the Company. All Board members and SeniorManagement personnel have confirmed compliancewith the Code for the year 2017-18. The Code ishosted on thewebsite of the Company and can beaccessed at: http://www.cochinshipyard.com/links/CodeofConduct.pdf

99. Adeclarationsignedby theChairmanandManagingDirectoroftheCompanyisgivenbelow:

I hereby declare that all the members of the Board of Directors and Senior Management personnel have affirmed compliance with the Code of Conduct of the Board of Directors and Senior Management personnel in respect of the financial year 2017-18.

Sd/-Madhu S Nair

Chairman and Managing DirectorDIN: 07376798

CEO/CFO Certification

100.The CEO/CFO certification of the financialstatementsfortheyearisappendedatEnclosure III to this report.


Risk Management Process

101.CSLreviewedtheexistingriskmanagementpolicyandadoptedarevisedpolicyencompassingacomprehensivesystemofRiskManagement at its 214th BoardMeetingheldon September16, 2014.The salient features of the new riskmanagementpolicyisasfollows:

(i) RiskManagementVision Statement:Minimize the organizational risks to an acceptable level and adopt riskmanagementpracticeswhichwouldhelptheCompanytoattainitsgoalsandobjectiveswhileatthesametimeensuringminimizationofrisks.

(ii) RiskManagementPolicy:

(a) TheRiskManagementprocessisimplementedtoimprovetheCompany’sabilitytopreventrisksandensuretimelydetectionofrisk.

(b) Toidentifyrisksanditsmitigation.

(c) RiskManagementprocesstobestandardized.

(d) Facilitatesharingofriskinformation.

102.The riskmanagement policy intends to put in place an effective riskmanagement framework and an appropriatereportingmechanism.ThemanagementofCochinShipyardwouldperiodicallyidentifythevariousrisksandassess/analyzetheirimpactontheCompany.Riskmitigationandmanagementmeasureswouldbeputinplacetoeffectivelymanagetheserisks.TheBoardmayapprovechangestothepolicyfromtimetotimeinordertoalignitwiththechangesinbusinessenvironment.

Risk Management System and Structure

103.TheBoardatthehelmwillreviewtheriskmanagementsystemwithinCSL.TheBoardshalldischargeitsresponsibilityof risk oversight by ensuring the review at periodical intervals.TheBoardmay also delegate to any other personorcommitteethetaskofindependentlyassessingandevaluatingtheeffectivenessoftheriskmanagementsystem.TheCSLmanagementcomprisingofCSLBoardLevelandbelowBoard levelexecutiveswillbeentrustedwith theimplementation of the risk management process. In this respect the Risk Management Committees and RiskManagementSteeringCommitteehavebeenconstitutedtoimplementthepolicyinCSL.

Share holding pattern

104.TheCompanyhas issued13,59,36,000 equitysharesofRs.10each,detailsofwhichasonMarch31,2018areasfollows:

Sl. No. Category No. of shareholders No. of shares % holding1. Central Government 1 10,19,52,000 75.00002. ClearingMembers 338 3,82,424 0.28133. FinancialInstitutions 5 7,12,568 0.52424. ForeignPortfolioInvestors(Corporate) 33 46,97,022 3.45535. ForeignPortfolioInvestors(Individual) 1 900 0.00076. HinduUndividedFamily 6,090 5,04,360 0.37107. MutualFunds 34 1,39,83,664 10.28698. NationalisedBanks 2 3,69,800 0.27209. NonNationalisedBanks 3 46,934 0.034510. NonResident(NonRepatriable) 670 46,934 0.093911. NonResidentIndians 2,092 5,41,373 0.398312. OtherBodiesCorporate 616 18,83,283 1.385413. Public 1,60,681 1,07,21,031 7.886814 Trusts 8 12,987 0.0096

Total 1,70,574 13,59,36,000 100.0000


Means of Communication

105.Thequarterly/halfyearlyfinancialresultsarepostedon thewebsitesof theBSE,NSEand theCompanyafterconsiderationandapprovalbytheBoardandalsowillbepublishedinoneEnglishnationaldailyhavingall India circulation and atleast in one Malayalamnational daily Kochi edition within 48 hours of itsadoption. The Annual Report of the Company ispostedinthewebsiteviz.www.cochinshipyard.com.ThewebsiteoftheCompanyalsodisplaysallofficialnewsreleases.

Audit Qualifications

106.The Report submitted by M/s Krishnamoorthy &Krishnamoorthy, StatutoryAuditors of the Companydoes not contain any qualification, reservation oradverseremarkordisclaimer.

107.The Report submitted by M/s SVJS & Associates,SecretarialAuditorsoftheCompanydoesnotcontainany qualification, reservation or adverse remark ordisclaimer.

Training Board Members

108.TheBoardmembersofCSLareseniorexecutiveswhohave a very vast,wide and varied experience in theareas of education, industry, defence, management,human resource management and administration.CSL has benefited from their vision and knowledge.PresentationsaremadetotheBoardmembersontheCompany’s performance, business model, corporateplan and future outlook, on their induction in theBoard. In addition, at the Board/ Committee/ othermeetings,detailedpresentationsaremadebytheseniormanagement personnel/ professionals/ consultantsonbusinessrelatedissues,riskassessment,riskpolicyetc. The directors are encouraged to identify andattendspecific trainingprogrammes to improve theireffectiveness. The Board has also adopted a policyregardingtrainingofDirectors.





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{UnderRegulation34(3)andScheduleV(E)oftheSEBI (ListingObligationsandDisclosureRequirements)Regulations,2015}

RegistrationNo.oftheCompany:U63032KL1972GOI002414NominalCapital:250,00,00,000/-

To,TheMembersM/sCochinShipyardLimitedCochin-682015

IhaveexaminedthecomplianceoftheconditionsofCorporateGovernancebyM/sCochinShipyardLimited(TheCompany),fortheyearendedMarch31,2018,asstipulatedinRegulation34(3)readwithScheduleV(E)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.Ihaveobtainedallthenecessaryinformationandexplanationswhichtothebestofmyknowledgeandbeliefwerenecessaryforthepurposeofcertification.

Thecomplianceofconditionsofcorporategovernanceistheresponsibilityofthecompany’smanagement.Myexaminationwaslimitedtoareviewofproceduresandimplementationthereof,adoptedbythecompanyforensuringthecomplianceoftheconditionsofthecorporategovernance.Itisneitheranauditnoranexpressionofopiniononthefinancialstatementsof the company.

Onthebasisofmyexaminationoftherecordsproduced,explanationsandinformationfurnished,IcertifythatthecompanyhascompliedwithalltheconditionsofthecorporategovernanceasstipulatedintheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

ThisCertificateisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

M.C.SAJUMON,MCOM,ACMA,ACS,ACIS(UK)PRACTISINGCOMPANYSECRETARY

Place:Kochi-18 ACS:9868,CP:2385Date:28.06.2018

CORPORATE gOVERnAnCE CERTIFICATE

Enclosure II


(AsstipulatedintheguidelinesoncorporategovernanceforCPSESissuedbythe DepartmentofPublicEnterprises,GovernmentofIndia).

TotheMembersofCochinShipyardLimited

I have examined the compliance of conditions of corporate governance byCochin Shipyard Limited (the company) forthefinancialyearended31-03-2018,asstipulatedintheGuidelinesonCorporateGovernanceforCentralPublicSectorEnterprises(CPSEs)issuedbytheDepartmentofPublicEnterprises(DPE),GovernmentofIndia.

Thecomplianceofconditionsofcorporategovernanceistheresponsibilityofthemanagement.Myexaminationwaslimitedtoproceduresandimplementationthereof,adoptedbythecompanyforensuringthecomplianceoftheconditionsoftheCorporateGovernance.Itisneitheranauditnoranexpressionofopiniononthefinancialstatementsofthecompany.

Inmyopinionandtothebestofmyinformationandaccordingtotheexplanationsgiventome,IcertifythatthecompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedintheabovementionedguidelines.

I further state that such compliance is neither an assurance as to futureviability of the companynor the efficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.

M.C.SAJUMON,MCOM,ACMA,ACS,ACIS(UK)PRACTISINGCOMPANYSECRETARY

Place:Kochi-18 ACS:9868,CP:2385Date:28.06.2018

CORPORATE gOVERnAnCE CERTIFICATE

Enclosure II


CEO/CFO CERTIFICATIOn

To TheBoardofDirectorsCochinShipyardLimitedCochin-15

DearSirs,

Sub: CEO/CFO Certificate

1. WehavereviewedFinancialStatements,readwiththeCashFlowStatementofCochinShipyardLimitedfortheyearended31stMarch2018andthattothebestofourknowledgeandbelief,westatethat:

(i) Thesestatementsdonotcontainanymateriallyuntruestatementoromitanymaterialfactorcontainstatementsthatmightbemisleading;

(ii) These statements present a true and fair view of the Company’s affairs and are in compliancewith currentAccountingStandards,applicablelawsandregulations.

2. Thereare,tothebestofourknowledgeandbelief,notransactionsenteredintobytheCompanyduringtheyearwhicharefraudulent,illegalorviolationoftheCompany’scodeofconduct.

3. Weacceptresponsibilityforestablishingandmaintaininginternalcontrolforfinancialreporting.WehaveevaluatedtheeffectivenessoftheinternalcontrolsystemsoftheCompanypertainingtofinancialreportingandhavedisclosedtotheAuditorsandtheAuditCommittee,deficienciesinthedesignoroperationofsuchinternalcontrols,ifany,ofwhichweareawareand;

4. WehaveindicatedtotheAuditorsandtheAuditCommitteethat:

(i) Therearenosignificantchanges,ininternalcontroloverfinancialreportingduringtheyear;

(ii) Therearenosignificantchanges,inaccountingpoliciesmadeduringtheyearand;

(iii) Therearenoinstancesofsignificantfraudofwhichwehavebecomeawareandtheinvolvementtherein,ifany,ofthemanagementoranemployeehavingasignificantroleintheCompany’sinternalcontrolsystemoverfinancialreporting.

D Paul Ranjan Madhu S NairDirector(Finance) ChairmanandManagingDirectorDIN:06869452 DIN:07376798

KochiJune30,2018

Enclosure III


INDEPENDENT AUDITOR’S REPORTTo TheMembersofCochin Shipyard Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind ASfinancial statements of Cochin Shipyard Limited (‘theCompany’),whichcomprisetheBalanceSheetasatMarch31,2018,theStatementofProfitandLoss(includingOtherComprehensiveIncome),theStatementofCashFlowsandtheStatementofChangesinEquityfortheyearthenended,and a summary of the significant accounting policies andother explanatory information (hereinafter referred to as‘IndASfinancialstatements’).

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for thematters stated in Section 134(5) of the Companies Act,2013 (‘theAct’)with respect to the preparation of theseStandaloneIndASfinancialstatementsthatgiveatrueandfairviewofthestateofaffairs(financialposition),profitorloss (financialperformance includingothercomprehensiveincome),cashflowsandchangesinequityoftheCompanyin accordance with the accounting principles generallyacceptedinIndia,includingtheIndianAccountingStandards(IndAS)prescribedunderSection133oftheAct.

This responsibility also includesmaintenanceof adequateaccounting records in accordance with the provisions oftheActforsafeguardingtheassetsoftheCompanyandforpreventing and detecting frauds and other irregularities;selectionandapplicationofappropriateaccountingpolicies;making judgments and estimates that are reasonable andprudent; and design, implementation andmaintenance ofadequate internal financial controls, that were operatingeffectivelyforensuringtheaccuracyandcompletenessofthe accounting records, relevant to the preparation andpresentationoftheStandaloneIndASfinancialstatementsthat give a true and fair view and are free frommaterialmisstatement,whetherduetofraudorerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on theseStandaloneIndASfinancialstatementsbasedonouraudit.

We have taken into account the provisions of the Act,theaccountingandauditingstandardsandmatterswhichare required tobe included in the audit report under theprovisionsoftheActandtheRulesmadethereunder.

WeconductedourauditoftheStandaloneIndAsfinancialstatements in accordancewith theStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhethertheStandaloneIndASfinancialstatementsarefreefrom material misstatement.

An audit involves performing procedures to obtain auditevidence about the amounts and the disclosures in theStandalone Ind AS financial statements. The proceduresselected depend on the auditor’s judgment, includingthe assessment of the risks of material misstatement ofthe Standalone IndAS financial statements,whether dueto fraud or error. In making those risk assessments, theauditorconsiders internalfinancialcontrol relevant to theCompany’spreparationof theStandalone IndASfinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances.An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness oftheaccountingestimatesmadebytheCompany’sBoardofDirectors,aswellasevaluatingtheoverallpresentationoftheStandaloneIndASfinancialstatements.

We believe that the audit evidencewe have obtained issufficientandappropriate toprovideabasis forourauditopinionontheStandaloneIndASfinancialstatements.

Opinion

In our opinion and to the best of our information andaccording to the explanations given to us, the aforesaidStandaloneIndASfinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndiaincludingtheIndAS,ofthestateofaffairs(financialposition)oftheCompanyasatMarch31,2018,and itsprofit (financialperformance includingothercomprehensiveincome), itscashflowsandthechangesinequityfortheyearendedonthatdate.

Emphasis of Matter

Wedrawattentiontothefollowing:-

i) Note No.29 to the Standalone IndAS financialstatements regarding the basis on whichthe Company has recognized revenue fromship building/ ship repair activities based onthe Company’s own assessment of physicalcompletion and further, reliance is placed onthetechnicalassessmentandactivitybasedcost


estimates defined by the Management for thepurposeofrecognitionofincome;

ii) NoteNo.41.atotheStandaloneIndAsfinancialstatements regarding environmental Clearancefor the International Ship Repair Facility (‘ISRF’)project from the National Board for Wildlife(‘NBWL’)whichhasrecommendedenvironmentalclearance for the ISRF project along with theconditions imposed by State Chief Wild LifeWarden (‘CWLW’) and subsequent utilizationof the Initial Public Offer proceeds relating tothe ISRF project based on the managementcontention that the conditions imposed bytheCWLWare to be compliedwith during theimplementationoftheISRFproject.

Ouropinionisnotmodifiedinrespectofthesematters.

Report on Other Legal and Regulatory Requirements

1. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(‘theOrder’) issuedbytheCentralGovernmentintermsofsub-section(11)ofsection143oftheAct,wegivein“AnnexureA”,astatementonthemattersspecifiedinparagraphs3and4oftheOrder.

2. Basedontheverificationof recordsof theCompanyandbasedon information and explanations given tous,wegivein“AnnexureB”reportsontheDirectionsissued by the Comptroller and Auditor General ofIndia in terms of Sec 143(5) of the Companies Act,2013.

3. As requiredbySection143 (3)of theAct,wereportthat:

a. Wehavesoughtandobtainedalltheinformationand explanations which to the best of ourknowledge and belief were necessary for thepurposesofouraudit;

b. In our opinion, proper books of account asrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks;

c. TheBalanceSheet, theStatementofProfit andLossincludingothercomprehensiveincome,theStatement ofCash Flows and the Statement ofChangesinEquitydealtwithbythisReportareinagreementwiththebooksofaccount;

d. Inouropinion, the aforesaidStandalone IndASfinancial statements comply with the IndianAccounting Standards prescribed under Section133oftheAct;

e. Inviewofexemptiongivenvidenotificationno.G.S.R.463(E)datedJune52015,issuedbyMinistry

ofCorporateAffairs,provisionsofSection164(2)oftheActregardingdisqualificationofDirectors,arenotapplicabletotheCompany;

f. With respect to the adequacy of the internalfinancial controlsoverfinancial reportingof theCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportin“AnnexureC”.

g. Withrespecttotheothermatterstobeincludedin theAuditor’sReport in accordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014, in our opinion and to the best of ourinformation and according to the explanationsgiventous:

i. The Company has disclosed the impact ofpending litigations on its financial positioninitsStandaloneIndASfinancialstatements– Refer Notes 40, 42, 43 and 44 to theStandaloneIndASfinancialstatements;

ii. The Company has made provision,as required under the applicable lawor accounting standards, for materialforeseeable losses, if any, on long-termcontracts. Further the Company did nothaveanylong-termderivativecontractsforwhich therewere anymaterial foreseeablelosses. – ReferNote 53 to the StandaloneIndASfinancialstatements;

iii. Therewerenoamounts,whichwererequiredtobetransferred,totheInvestorEducationandProtectionFundbytheCompany;and

iv. Thedisclosuresregardingdetailsofspecifiedbank notes held and transacted duringNovember8, 2016 toDecember30,2016has not been made since the requirementdoes not pertain to financial year endedMarch31,2018.

For Krishnamoorthy & KrishnamoorthyCharteredAccountants

Firm’sregistrationnumber:001488S

C.R RemaPartner

Membershipnumber:029182

Cochin-16May24,2018


Annexure A to the Independent Auditor’s Report

With reference to the Annexure A referred to in theIndependent Auditor’s Report to the members of theCompanyontheStandaloneIndAsfinancialstatementsfortheyearendedMarch31,2018,wereportthefollowing:

i) InrespectoftheCompany’sfixedassets:

(a) The Company has maintained proper recordsshowing full particulars, including quantitativedetailsandsituationoffixedassets.

(b) As explained to us, the fixed assets have beenphysicallyverifiedbytheManagementduringtheyearandthereisaregularprogrammeofphysicalverification,which in our opinion, is reasonablehavingregardtothesizeofthecompanyandthenatureofitsassets.Asexplainedtous,nomaterialdiscrepancieswerenoticedonsuchverification.

(c) According to the information and explanationsgiventousandonthebasisofourexaminationoftherecordsoftheCompany,thetitledeedsofimmovablepropertiesareheldinthenameoftheCompany.

ii) As explained to us, the inventories (excluding goodsin transit)were physicallyverified during theyear inaccordancewiththe inventoryverificationprocedureadopted by the Management. In our opinion, thefrequency of such physical verification needs to beincreased.Thediscrepanciesnoticedonsuchphysicalverificationbetweenthephysicalstockandthebookrecordswerenotmaterial.

iii) According to the informationandexplanationsgiventous,theCompanyhasnotgrantedanyloans,securedor unsecured to companies, firms, Limited LiabilityPartnerships or other parties covered in the registermaintainedundersection189oftheAct.Accordinglytheprovisionsofclause3(iii)(a),(b)and(c)oftheOrderarenotapplicabletotheCompany.

iv) Inouropinion andaccording to the informationandexplanationsgiventous, theCompanyhascompliedwiththeprovisionsofSections185and186oftheAct,with respect to loans, investments, guarantees andsecurities.

v) Accordingtotheinformationandexplanationgiventous,thecompanyhasnotacceptedanydepositsfromthepublicwithinthemeaningofthedirectivesissuedbytheReserveBankofIndia,provisionsofSections73to76oranyotherrelevantprovisionsoftheActandtherulesframedthereunder.

vi) We have broadly reviewed the books of accountmaintained by the Company in respect of productswhere the maintenance of cost records has been

specified by the Central Government under Section148(1)oftheActandtherulesframedthereunderandweareoftheopinionthatprima-facie,theprescribedbooks of account and cost records have beenmadeand maintained. We have not, however, made adetailedexaminationofthecostrecordswithaviewtodeterminingwhethertheyareaccurateorcomplete.

vii) AccordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationoftherecordsoftheCompany,inrespectofstatutorydues:

(a) The Company is generally regular in depositingundisputed statutory dues including ProvidentFund, Employees’ State Insurance, Income Tax,Sales Tax, Service Tax, Goods and Service Tax,Duty of Customs, Duty of Excise, ValueAddedTax, Cess and other material statutory duesapplicabletoitwiththeappropriateauthorities.

There were no undisputed amounts payable inrespect of Provident Fund, Employees’ StateInsurance, Income Tax, Sales Tax, Service Tax,GoodsandServiceTax,DutyofCustoms,DutyofExcise,ValueAddedTax,Cessandothermaterialstatutorydues inarrearsasatMarch31,2018,for a period ofmore than sixmonths from thedatetheybecamepayable.

(b) TherearenoduesofIncometax,Salestax,ServiceTax, Goods and Service Tax, Duty of Customs,Duty of Excise and Value added tax whichhave not been deposited with the appropriateauthorities on account of disputes, except asgivenin“AnnexureD”.

viii) According to the information and explanationsgiven to us, the Company does not have any loansor borrowings from any financial institution, banksor government during the year. In respect of bondsissued,theCompanyhasnotdefaultedinpaymentofanydues.

ix) Inouropinion andaccording to the informationandexplanationsgiventous,moneyraisedbywayofinitialpublicofferhavebeenappliedbytheCompanyduringtheyearforthepurposesforwhichtheywereraised,otherthantemporarydeploymentpendingapplicationof proceeds. The Company has not raised any termloansduringtheyear.

x) To the best of our knowledge and according to theinformationandexplanationsgiventous,nomaterialfraud by the Company or on the Company by itsofficers or employees has been noticed or reportedduringthecourseofouraudit.

xi) In view of exemption given vide notification no.G.S.R.463(E)datedJune5,2015, issuedbyMinistry


of CorporateAffairs, provisions of Section 197 readwith Schedule V of the Act regarding managerialremuneration are not applicable to the Company.Accordingly, paragraph 3(xi) of the Order is notapplicabletotheCompany.

xii) In our opinion and according to the informationgiventous, theCompany isnotaNidhicompanyasprescribedunderSection406oftheAct.Accordinglyparagraph3(xii)of theOrder isnotapplicable to theCompany.

xiii) According to the informationandexplanationsgiventousandbasedonourexaminationoftherecordsofthe Company, transactions with the related partiesare in compliancewith sections177 and188of theAct,whereapplicableanddetailsofsuchtransactionshavebeendisclosedintheStandaloneIndASfinancialstatements as required by the applicable IndianAccountingStandards.

xiv) According to the informationandexplanationsgivento us and based on our examination of the recordsof the Company, the Company has not made anypreferentialallotmentorprivateplacementof sharesor fully or partly convertible debentures during theyear.Accordingly,paragraph3(xiv)oftheOrderisnotapplicabletotheCompany.

xv) According to the informationandexplanationsgiventousandbasedonourexaminationoftherecordsoftheCompany,theCompanyhasnotenteredintonon-cashtransactionswithdirectorsorpersonsconnectedwiththem.Accordingly,paragraph3(xv)oftheOrderisnotapplicabletotheCompany.

xvi) TheCompany isnot required tobe registeredundersection45-IAoftheReserveBankofIndiaAct1934.Accordingly, paragraph 3(xvi) of the Order is notapplicabletotheCompany.



C.R RemaPartner


Cochin-16May24,2018


Annexure B to the Independent Auditor’s Report

With reference to the Annexure B referred to in theIndependent Auditor’s Report to the members of theCompanyontheStandaloneIndAsfinancialstatementsfortheyearendedMarch31,2018,wereportthefollowing:

A. Directions

1. Whether the company has clear title / lease deeds for freehold and leasehold land respectively? If not, please state the area of freehold and leasehold land for which title / lease deeds are not available.

Based on our examination of the records of theCompany and according to the information andexplanations given to us and the confirmation fromBondTrusteesinrespectoftitledeedsdepositedwiththemandbasedon thedetails of landandbuildingsfurnishedtousbytheCompany,thetitle/leasedeedsforfreeholdandleaseholdlandrespectivelyareheldin the name of the Company.

2. Whether there are any cases of waiver/write off debts/loans/interest etc., if yes, the reasons therefore and the amount involved.

Based on our examination of the records of theCompany and according to the information andexplanationsgiventous,duringtheyear,theCompanyhasnotwaivedorwrittenoffanydebts/loans/interest.Asperthepolicyfollowedbythecompany,liquidateddamages, where the levies depend on decisionsregarding force majeure condition of contract, areaccountedforoncompletionofcontractand/orwhen

final decision is taken. Based on our examinationof the recordsof theCompanyandaccording to theinformationandexplanationsgiven tous, Liquidateddamagesaccountedforhasnotbeenwaived/writtenoff during the year. Based on the explanation givento us, the Company does not have the practice ofclaiminginterestondelayedpaymentfromcustomersthoughcertaincontractsprovideforthesame.

3. Whether proper records are maintained for inventories lying with third parties & assets received as gift/grant(s) from the Government or other authorities.

Based on our examination of the records as weconsidered appropriate and further based on theinformation and explanations given to us, theCompany ismaintaining proper records of inventorysentoutduringtheyearand lyingwith thirdparties.TheCompany has not received any assets as gift orgrant(s)fromGovernmentorotherauthorities.



C.R RemaPartner


Cochin-16May24,2018


Annexure C to the Independent Auditor’s Report

(Referredtoinparagraph3(f)under‘ReportonOtherLegalandRegulatoryRequirements’ sectionof the IndependentAuditor’sReport to themembersof theCompanyon theStandaloneIndAsfinancialstatementsfortheyearendedMarch31,2018.)

Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

Wehaveauditedtheinternalfinancialcontrolsoverfinancialreporting of Cochin Shipyard Limited (‘the Company’) asof March 31, 2018 in conjunctionwith our audit of theStandaloneIndASfinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

TheCompany’smanagementisresponsibleforestablishingand maintaining internal financial controls based on theinternalcontroloverfinancialreportingcriteriaestablishedby theCompanyconsidering theessentialcomponentsofinternal control stated in theGuidanceNote onAudit ofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsof India (‘ICAI’).These responsibilities include the design, implementationand maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderlyandefficient conductof itsbusiness, includingadherenceto Company’s policies, the safeguarding of its assets, thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparation of reliable financial information, as requiredundertheAct.


OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting(‘theGuidanceNote’)andtheStandardsonAuditing, issuedby ICAIanddeemed tobeprescribedundersection143(10)oftheAct,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbyICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformthe audit to obtain reasonable assurance about whetheradequateinternalfinancialcontrolsoverfinancialreportingwas established and maintained and if such controlsoperatedeffectivelyinallmaterialrespects.

Our audit involvesperformingprocedures toobtain auditevidence about the adequacy of the internal financial

controlssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditof internalfinancial controlsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingthe risk that amaterialweakness exists, and testing andevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementoftheStandaloneIndASfinancialstatements,whetherduetofraudorerror.

We believe that the audit evidencewe have obtained issufficientandappropriate toprovideabasis forourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

Acompany’sinternalfinancialcontroloverfinancialreportingis a process designed to provide reasonable assuranceregarding the reliability of financial reporting and thepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.A company’s internal financial control over financialreporting includes those policies and procedures that (1)pertain to themaintenanceof records that, in reasonabledetail, accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded asnecessarytopermitpreparationoffinancialstatements inaccordancewithgenerallyacceptedaccountingprinciples,and that receipts and expenditures of the company arebeing made only in accordance with authorizations ofmanagementanddirectorsofthecompany;and(3)providereasonable assurance regarding prevention or timelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financialcontrols over financial reporting, including the possibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiods are subject to the risk that the internal financialcontrol over financial reporting may become inadequatebecause of changes in conditions, or that the degree ofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion, theCompanyhas, in allmaterial respects,


anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch31,2018,basedontheinternalcontroloverfinancialreportingcriteriaestablished by the Company considering the essentialcomponents of internal control stated in the GuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheICAI.



C.R RemaPartner


Cochin-16May24,2018


Annexure D referred to under clause vii (b) to Annexure A

DetailsofduesoutstandingwithrespecttoIncometax,Salestax,ValueAddedTax,ServiceTaxandDutyofCustomsonaccountofdisputes:

(`inlakhs)

Sl. No Name of the statute Nature of

dues Amount*

₹

Amount paid/

adjusted₹

Amount unpaid

₹ Period Forum where dispute is

pending

1 IncomeTaxAct,1961 IncomeTax 3158.87 - 3158.87 AY1997-98 AY1998-99 AssessingOfficer

2 IncomeTaxAct,1961 IncomeTax 620.47 - 620.47AY1999-00 AY2000-01 AY2001-02

Hon’bleHighCourtofKerala

3 IncomeTaxAct,1961 IncomeTax 29.99 29.99 - AY2002-03 IncomeTaxAppellateTribunal

4 IncomeTaxAct,1961 IncomeTax 2268.52 2267.95 0.57

AY2009-10 AY2010-11 AY2011-12 AY2012-13 AY2013-14 AY2014-15

CommissionerofIncomeTax(Appeals)

5 KeralaGeneralSalesTaxAct,1963 SalesTax 266.89 20.38 246.51

1996-97 2000-01 2001-02

AssessingOfficer,CommercialTaxes

6 KeralaGeneralSalesTaxAct,1963 SalesTax 58.03 - 58.03 1999-2000

AssessingAuthority,CommercialTaxes(RemandedbacktoAssessingOfficerbyKeralaSalesTaxAppellateTribunal)

7 KeralaGeneralSalesTaxAct,1963 SalesTax 202.22 6.55 195.67 2004-05 **

8 KeralaValueAddedTaxAct,2003

ValueAddedTax 1008.70 130.00 878.70 2005-06

2007-08 KVATAppellateTribunal

9 FinanceAct,1994 ServiceTax 3284.49 1686.53 1597.96 2003-04to2014-15

Customs,Excise&ServiceTaxAppellateTribunal,Bangalore

10 FinanceAct,1994 ServiceTax 24.08 - 24.08 2003-04to2007-08

Hon’bleHighCourtofKerala

11 FinanceAct,1994 ServiceTax 50.62 3.45 47.18 Jul2012- Mar2013

Commissioner of Central Excise(Appeals)

12 CustomsAct,1962 Duty of Customs 27.46 - 27.46 1984-1990 Chief Commissioner of

Customs,Bangalore

13 CustomsAct,1962 Duty of Customs 283.34 261.22 22.12 2003-04

2013-14

Customs,Excise&ServiceTaxAppellateTribunal,Bangalore

14 CustomsAct,1962 Duty of Customs 23.31 - 23.31 2004-05 CommissionerofCustoms,

Kochi

15 CustomsAct,1962 Duty of Customs 14,891.39 - 14,891.39 2010-2015 Hon’bleHighCourtof

Kerala

*Duesincludespenaltyandinterestwhereverapplicable.

**TheCompanyisintheprocessoffilinganappealbeforeKVATAppellateTribunal.


BAlAnCE ShEETasatMarch31,2018

(`inlakhs)

Particulars Note No. As at 31.03.2018 As at 31.03.2017

ASSETSNon-current assets(a) Property,plantandequipment 3 28,446.72 30,285.30(b) Capitalwork-in-progress 4 11,484.34 5,392.33(c) Intangibleassets 5 6,451.75 6,775.89(d) Financialassets

(i) Investments 6 1,637.18 9.18(ii) Loans 7 147.77 145.39

(e) Incometaxassets(net) 8 5,400.03 3,601.27(f) Deferredtaxassets(net) 9 4,332.27 2,433.43(g) Othernon-currentassets 10 7,688.25 2,467.23

65,588.31 51,110.02 Current assets(a) Inventories 11 31,455.67 18,647.09(b) FinancialAssets

(i) Investments 12 0.16 0.00(ii) Tradereceivables 13 58,012.76 30,699.22(iii) Cashandcashequivalents 14 79,194.06 67,598.15(iv) Bankbalancesotherthan(iii)above 15 269,840.19 131,530.99(v) Loans 16 38.14 46.70(vi) OtherFinancialassets 17 26,083.13 23,269.18

(c) Currenttaxassets(net) 8 0.00 1,694.74(d) Othercurrentassets 18 16,716.32 7,057.05

481,340.43 280,543.12 Total Assets 546,928.74 331,653.14 EQUITY AND LIABILITIESEquity :(a) Equitysharecapital 19 13,593.60 11,328.00(b) Otherequity 20 311,993.09 191,530.24

325,586.69 202,858.24 Liabilities :Non-current liabilities(a) Financialliabilities

(i) Borrowings 21 12,300.00 12,300.00(ii) Otherfinancialliabilities 22 261.22 261.22

(b) Provisions 23 2,265.70 2,141.60(c) Othernoncurrentliabilities 24 13.74 0.00

14,840.66 14,702.82 Current liabilities(a) Financialliabilities

(i) Tradepayables 25 27,382.97 16,088.06(ii) Otherfinancialliabilities 26 11,736.48 9,607.79

(b) Othercurrentliabilities 27 137,977.56 67,303.88(c) Provisions 28 28,332.91 21,092.35(d) Currenttaxliabilities(net) 8 1,071.47 0.00

206,501.39 114,092.08 Total Equity and Liabilities 546,928.74 331,653.14

CorporateoverviewandSignificantAccountingPolicies 1-2NotestotheFinancialStatements 3-55TheaccompanyingnotesareanintegralpartofthesefinancialstatementsForandonbehalfofBoardofDirectors

V KALA SURESH BABU N V D PAUL RANJAN MADHU S NAIRCompanySecretary Director(Operations) Director(Finance)&ChiefFinancialOfficer ChairmanandManagingDirector DIN-07482491 DIN-06869452 DIN-07376798Kochi,datedMay24,2018Asperourreportattached

For M/s Krishnamoorthy & Krishnamoorthy,CharteredAccountants(FirmRegistrationNo.001488S)

C R RemaPartner(MembershipNumber029182)Kochi,dated24May2018


STATEMEnT OF PROFIT AnD lOSSfortheyearendedMarch31,2018

(`inlakhs)

Particulars Note No. For the year ended March 31, 2018

For the year ended March 31, 2017

I IncomeRevenuefromoperations 29 235512.33 205887.10Otherincome 30 18915.83 15863.26

Total Income 254428.16 221750.36

II Expenses:Costofmaterialsconsumed 31 116565.64 100872.67Changesininventoriesofwork-in-progress 32 2510.39 (1395.52)Subcontractandotherdirectexpenses 33 23528.99 31936.73Employeebenefitsexpense 34 27139.85 21726.64Finance costs 35 1141.03 1053.58Depreciationandamortisationexpense 36 3751.02 3850.99Otherexpenses 37 13479.06 13451.87Provisionforanticipatedlossesandexpenditure 38 5826.17 913.35Total expenses 193942.15 172410.31

III Profit before tax 60486.01 49340.05

IV Tax expense:(1) Currenttax 8 22412.00 16348.35(2) Deferredtax 8 (1601.00) 837.00

V Profit for the year 39675.01 32154.70 VI Other comprehensive income

A) Itemsthatwillnotbereclassifiedtoprofitorlossi) Remeasurementsofdefinedemployeebenefitobligations (205.04) (163.00)ii) Incometaxrelatingtoitemsthatwillnotbereclassifiedtoprofitorloss 70.96 56.41

Other comprehensive income for the year (134.08) (106.59)

VII Total Comprehensive income for the year 39540.93 32048.11 VIII Earnings per equity share of Rs 10 each : 39

(1) Basic (Rs) 31.03 28.39 (2) Diluted (Rs) 31.03 28.39

CorporateoverviewandSignificantAccountingPolicies 1-2NotestotheFinancialStatements 3-55TheaccompanyingnotesareanintegralpartofthesefinancialstatementsForandonbehalfofBoardofDirectors

V KALA SURESH BABU N V D PAUL RANJAN MADHU S NAIRCompanySecretary Director(Operations) Director(Finance)&ChiefFinancialOfficer ChairmanandManagingDirector DIN-07482491 DIN-06869452 DIN-07376798

Kochi,datedMay24,2018Asperourreportattached




STATEMEnT OF CASh FlOwSfortheyearendedMarch31,2018

(`inlakhs)

Particulars For the year ended March 31, 2018


A. Cash flow from operating activities

Profit before tax 60,486.01 49,340.05

Adjustmentsfor:

Depreciationandamortisation 3,497.59 3,584.23

Interestexpense 1,141.03 1,053.58

Interestincome (15,421.47) (13,085.52)

Rental income (58.18) (55.39)

Dividendincome (185.84) (199.02)

Lossonsale/writeoffofpropertyplantandequipment 9.86 414.85

Profitonsaleofpropertyplantandequipment (1.34) (6.56)

Profitonsaleofinvestments (669.82) (460.96)

IncomerecognisedonGovt.assistance (1.14) 0.00

Loss/(gain)onderivativecontracts(net) 0.00 (222.84)

Unrealisedloss/(gain)onderivativecontracts(net) 0.00 38.68

Netgain/(loss)onforeigncurrencytransactions (217.73) (227.22)

ExpensesonInitialPublicOffer 668.89 182.11

Effectiveloss/gainofcashflowhedges 0.00 35.53

Operatingcashflowbeforeworkingcapitalchanges 49,247.86 40,391.52

Movementsinworkingcapital:

(Increase)/decreaseininventories (12,808.58) 4,516.71

(Increase)/decreaseintradeandotherreceivables (181,602.26) 15,781.35

Increase/(decrease)intradeandotherpayables 85,596.22 (24,458.54)

(59,566.76) 36,231.04

Incometaxpaidnetofrefunds (15,610.00) (15,003.00)

Net cash flows from operating activities (A) (75,176.76) 21,228.04

B. Cash flow from investing activities

Purchaseofproperty,plantandequipment (1,364.27) (4,042.71)

(Increase)/decreaseincapitalworkInprogress (6,092.01) (2,975.17)

InvestmentinMutualFunds (203,750.00) (113,785.00)

RedemptionofMutualFunds 203,749.84 113,785.00

Dividendreceived 185.84 199.02

Profitonsaleofinvestments 669.82 460.96

Govt.assitancereceived 16.03 0.00

InvestmentinHCSLSubsidiary (1,628.00) 0.00

Saleorwithdrawalofproperty,plantandequipment 20.91 10.55

Interestreceived 13,607.52 12,766.91

Rentreceived 59.50 55.39

Net cash flows from investing activities (B) 5,475.18 6,474.95




C. Cash flow from financing activities

ProceedsfromIPOincludingsecuritiespremium 96,195.36 0.00

Loss/(gain)onderivativecontracts(Net) 0.00 222.84

Netgain/(loss)onforeigncurrencytransactions 217.73 227.22

Dividendpaid (10,161.21) (8,665.92)

Dividenddistributiontaxpaid (2,068.58) (1,764.18)

Interestpaid (1,141.15) (1,053.70)

ExpensesonInitialPublicOffer (1,744.66) (218.28)

Net cash flows from financing activities (C) 81,297.49 (11,252.02)

D. Net Increase in Cash & Cash Equivalents (A)+(B)+(C) 11,595.91 16,450.97

Cash and cash equivalent at the beginning of the Year

Cashonhand 0.00 1.24

BalancewithBanksincurrentaccountanddepositaccount 67,598.15 51,145.94Cashandcashequivalents(asperNote16) 67,598.15 51,147.18

Cash and cash equivalent at the end of the Year

Cashonhand 0.12 0.00

BalancewithBanksincurrentaccountanddepositaccount 79,193.94 67,598.15Cashandcashequivalents(asperNote14) 79,194.06 67,598.15

Note:Figuresinbracketsindicateoutflow.CorporateoverviewandSignificantAccountingPolicies 1-2NotestotheFinancialStatements 3-55ForandonbehalfofBoardofDirectors





(`inlakhs)


STATEMEnT OF ChAngES In EquITyfortheyearendedMarch31,2018

A. Equity Share Capital (`inlakhs)

As at 01.04.2017 Changes in equity share capital during the year As at 31.03.2018

11,328.00 2,265.60 13,593.60


11,328.00 0.00 11,328.00

B.OtherEquity (`inlakhs)Reserves and Surplus

TotalCapital Reserve

Securities Premium Reserve

General Reserve

RetainedEarnings

Capital Redemption

Reserve

Debenture Redemption

Reserve

Balance as at April 01,2017 263.56 0.85 6,322.75 172,081.27 11,914.20 947.61 191,530.24

Profitfortheyear 39,675.01 39,675.01Othercomprehensiveincomefortheyear (134.08) (134.08)Total comprehensive income for the year 39,540.93 39,540.93 Dividends(includingtaxes) (12,229.79) (12,229.79)Transferfromretainedearnings (288.33) 288.33 0.00PremiumonIPOnetofDeferredTax 93,151.83 93,151.83Amortisationofpremium (0.12) (0.12)Balance as at March 31,2018 263.56 93,152.56 6,322.75 199,104.08 11,914.20 1,235.94 311,993.09

Balance as at April 01,2016 263.56 0.97 6,322.75 150,944.38 11,914.20 659.28 170,105.14

Priorperiodadjustments (192.79) (192.79)

Restatedbalanceatthebeginningofthereportingperiod 263.56 0.97 6,322.75 150,751.59 11,914.20 659.28 169,912.35

Profitfortheyear 32,154.70 32,154.70Othercomprehensiveincomefortheyear (106.59) (106.59)Total comprehensive income for the year 32,048.11 32,048.11Dividends(includingtaxes) (10,430.10) (10,430.10)Transferfromretainedearnings (288.33) 288.33 0.00Amortisationofpremium (0.12) (0.12)Balance as at March 31,2017 263.56 0.85 6,322.75 172,081.27 11,914.20 947.61 191,530.24

ForandonbehalfofBoardofDirectors





NotesTo Financial Statements for the year ended 31st March 2018


1. CORPORATE OVERVIEW AND SIGNIFICANT ACCOUNTING POLICIES

1.1. Corporate information

CochinShipyardLimited(referredtoas“CSL”or“theCompany”) ismainly engaged in the construction ofvessels and repairs and refits of all types of vesselsincludingupgradationofshipsperiodicallayuprepairsandlifeextensionofships.

TheCompanyisapubliclimitedcompanyincorporatedand domiciled in India. The address of its corporateoffice is Perumanoor,Kochi,Kerala.As atMarch31,2018, the Government of India holds 75% of theCompany’sequitysharecapital.TheCompany’sequitysharesare listedfortradingonNSELimitedandBSELimitedinIndiaandtaxfreebondsarelistedfortradingonBSELimited.

ThefinancialstatementsfortheyearendedMarch31,2018were approved by the Board of Directors andauthorisedforissueonMay24,2018.

2. Significant Accounting Policies

2.1 Statement of compliance

These financial statements have been prepared inaccordance with the Indian Accounting Standards(referred toas “IndAS”) asprescribedunderSection133oftheCompaniesAct,2013readwithCompanies(IndianAccountingStandards)Rules,2015asamendedfromtimetotime.

2.2 Basis of preparation of Financial Statements

These financial statements have been prepared onthe historical cost basis, except for certain financialinstrumentswhicharemeasuredat fairvaluesat theend of each reporting period, as explained in theaccountingpoliciesbelow.Historicalcostisgenerallybased on the fair value of the consideration giveninexchange forgoodsand services.Fairvalue is theprice thatwouldbe received to sell anassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.

2.3 Use of estimates and judgements

The preparation of the financial statements inconformitywith the IndAS requiresmanagement tomake judgements, estimates and assumptions thataffect the application of accounting policies and thereportedamountsofassets,liabilitiesanddisclosuresasatdateofthefinancialstatementsandthereportedamountsoftherevenuesandexpensesfortheyearspresented.Theestimatesandassociatedassumptionsare basedonhistorical experience andother factorsthat are considered to be relevant. Actual resultsmay differ from these estimates under differentassumptionsandconditions.

The estimates and underlying assumptions arereviewedonanongoingbasis.Revisionstoaccountingestimates are recognized in the period inwhich theestimate is revised if the revision affects only thatperiod or in the period of the revision and futureperiodsiftherevisionaffectsbothcurrentandfutureperiods.

2.4 Critical Accounting estimates and judgements:

Theapplicationofsignificantaccountingpoliciesthatrequirecriticalaccountingestimatesinvolvingcomplexandsubjectivejudgementsandtheuseofassumptionsinthefinancialstatementshavebeendisclosedbelow:

Useful lives of property, plant and equipment

The Company reviews the estimated useful livesandresidualvaluesofproperty,plantandequipmentat the end of each reporting period. Assumptionsare also made as to whether an item meets thedescriptionofassetsoastowarrantitscapitalisationandwhichcomponentoftheassetmaybecapitalised.Reassessment of life may result in change indepreciationexpenseinfutureperiods.

Valuation of deferred tax assets / liabilities

The Company reviews the carrying amount ofdeferred tax assets / liabilities at the end of eachreportingperiod.Significant judgementsare involvedindeterminingtheelementsofdeferredtaxitems.



Impairment of unquoted investments

TheCompanyreviewsitscarryingvalueofinvestmentsannually,ormorefrequentlywhenthereisindicationforimpairment. If the recoverableamount is less than itscarryingamount,theimpairmentlossisaccountedfor.

Recognition and measurement of provisions

The recognition and measurment of provisions arebased on the assessment of the probability of anoutflow of resources and on past experience andcircumstance known at the balance sheet date. Theactual outflow of resources at a future date maythereforevaryfromthefigureincludedinprovisions.

Provision towards Guarantee repairs

Aprovisionismadetowardsguaranteerepairs/claimsinrespectofnewlybuiltships/smallcraftsdeliveredandrepairedshipsonthebasisofthetechnicalestimationdonebytheCompany.Theguaranteeclaimsreceivedfrom the ship owners are reviewed every year tillsettlement of the same. In case of a shortfall in theprovisionmadeearlier,additionalprovisionsaremade.

Contingencies and commitments

Acontingentliabilityisapossibleobligationthatarisesfrompast eventswhose existencewill be confirmedbytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontrolof the Company or a present obligation that is notrecognisedbecauseitisnotprobablethatanoutflowof resourceswill be required to settle the obligationoritcannotbemeasuredwithsufficientreliability.TheCompanydoesnotrecogniseacontingentliabilitybutdisclosesitsexistenceinthefinancialstatements.

Recoverability of advances / receivables

TheCompanymakesprovisionsforexpectedcreditlossbasedonanassessmentoftherecoverabilityoftradeand other receivables. The identification of doubtfuldebtsrequiresuseofjudgementandestimates.Wheretheexpectationisdifferentfromtheoriginalestimate,suchdifferencewill impact the carryingvalueof thetradeandotherreceivablesandexpensesonaccount

ofprovisionfordoubtfuldebtsintheperiodinwhichsuchestimatehasbeenchanged.Ateachbalancesheetdate,basedonhistoricaldefault ratesobservedoverexpectedlife,themanagementassessestheexpectedcreditlossonoutstandingreceivablesandadvances.

Fair value measurements

Management applies valuation techniques todetermine the fair value of financial instruments(whereactivemarketquotesarenotavailable)andnon-financialassets.Thisinvolvesdevelopingestimatesandassumptionsconsistentwithhowmarketparticipantswould price the instrument. Management bases itsassumptionsonobservabledataasfaraspossiblebutthis isnotalwaysavailable.Inthatcasemanagementuses the best information available. Estimated fairvaluesmayvaryfromtheactualpricesthatwouldbeachievedinanarm’slengthtransactionatthereportingdate.

Classification of Leases

The Company enters into leasing arrangementsfor various assets. The classification of the leasingarrangement as a finance lease or operating lease isbasedonanassessmentofseveralfactors, including,but not limited to, transfer of ownership of leasedassetatendofleaseterm,lessee’soptiontopurchaseand estimated certainty of exercise of such option,proportion of lease term to the asset’s economiclife, proportion of present value of minimum leasepayments to fairvalueof leasedasset andextentofspecialisednatureoftheleasedasset.

Provision for inventories

Management reviews the inventory ageing on aperiodic basis. This review involves comparison ofthe carrying value of the aged inventory itemswiththerespectivenetrealisablevalue.Thepurposeistoascertainwhetheraprovisionisrequiredtobemadeinthefinancialstatementsforanyobsoleteandslow-movingitemsandthatadequateprovisionforobsoleteand slow-moving inventories has been made in thefinancialstatements.



Provision for Liquidated Damages

Claims for liquidated damages against the Companyare recognized in the financial statements basedon the management’s assessment of the probableoutcomewith reference to the available informationsupplementedbyexperienceofsimilartransactions.

A provision in respect of liquidated damages isrecognised for the period of delay between the duedateofsupplyofgoodsasper thedeliveryscheduleandtheexpecteddateofdeliveryofthesaidgoods.

Revenue Recognition

The Company uses the percentage of completionmethodinaccountingforitsfixedpricecontracts.TheuseofthepercentageofcompletionmethodrequirestheCompanytoestimatethecostsexpendedtodateasaproportiontothetotalcosttobeexpendedonaproject considering thephysicalprogressorfinancialprogresswhichever is lower. Provision for estimatedlossesifanyontheuncompletedpartofthecontractsareprovidedintheperiodinwhichsuchlossesbecomeprobablebasedontheexpectedcontractestimatesatthereportingdate.

Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan isdeterminedonthebasisofactuarialassumptions.Keyactuarial assumptions include discount rate, trendsin salary escalation and vested future benefits andlifeexpectancy.Thediscountrateisdeterminedwithreferencetomarketyieldsattheendofthereportingperiod on the Government bonds. The period tomaturity of the underlying bonds correspond to theprobable maturity of the post employment benefitobligations.

2.5 Property , Plant and Equipment (PPE)

TheCompanyhadappliedfortheonetimetransitionexemption of considering the carrying cost on thetransition date i.e. April 1, 2015 as the deemedcost under Ind AS. Hence regarded thereafter ashistorical cost.

Property,PlantandEquipmentsarestatedatcostlessaccumulated depreciation (other than free hold landwhicharestatedatcost)andimpairmentlosses,ifany.PPEareinitiallyrecognisedatcost.TheinitialcostofPPEcomprisesitspurchaseprice,andanycostsdirectlyattributabletobringingtheassettothe locationandconditionnecessaryfor it tobecapableofoperatinginthemannerintendedbymanagementincludingnonrefundabledutiesandtaxesnetofanytradediscountsandrebatesThecostofPPEalsoincludesinterestonborrowings (borrowing cost directly attributable toacquisition, construction or production of qualifyingassets)uptoinitialrecognition.

Subsequent costs are included in the asset’s carryingamountorrecognisedasaseparateasset,asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompanyandthecostoftheitemsarematerialandcanbemeasuredreliably. The carrying amount of any componentaccountedforasaseparateassetisderecognisedwhenreplaced.Allotherrepairsandmaintenancearechargedto Statement of profit and loss during the reportingperiodinwhichtheyareincurred.

2.6 Capital work in progress and intangible assets under development:

Capital work in progress and intangible assets underdevelopment are property, plant and equipment thatarenotyetreadyfortheirintendeduseatthereportingdate,whicharecarriedatcost,comprisingdirectcost,relatedincidentalexpensesandattributableborrowingcost.

2.7 Intangible Assets

Design development: Cost incurred on DesignDevelopment which are not directly chargeable ona product are capitalized as Intangible Asset andamortisedonastraight-linebasisoveraperiodoffiveyears.

Software: Cost of software which is not an integralpartof the relatedhardwareacquired for internaluseis capitalised as intangible asset and amortised on astraight-linebasisoveraperiodofthreeyears.



Right to use: Up- front fee paid for securing rightto use of land and other facility is capitalized asintangibleassetandamortisedonastraightlinebasisovertheperiodofleaseforwhichtherighthasbeenobtained.

Internally generated procedure: Cost of internallygeneratedweld procedure is capitalized as IntangibleAsset and amortised on a straight-line basis over aperiodofthreeyears.

The residual values, useful lives and methods ofamortization of intangible assets are reviewed ateach financial year end and adjusted prospectively, ifappropriate.

2.8 Leases

As a lessee:

Leases are classified as finance leaseswhenever thetermsof lease transfer substantially all the risks andrewards of ownership to the lessee. Leases wherea significant portion of the risks and rewards ofownershipareretainedbythelessorareclassifiedasoperatingleases.

(i) Operating Lease:

Operating lease payments are recognized as anexpense in the Statement of Profit and Loss on astraight-line basis over the lease term exceptwhereanothersystematicbasisismorerepresentativeofthetimepattern inwhicheconomicbenefitsfromleasedassets are consumed or unless the lease agreementexplicitlystatesthatincreaseisonaccountofinflation.

(ii) Finance Lease:

AssetstakenonleasebytheCompanyinitscapacityaslessee,wheretheCompanyhassubstantiallyalltherisksandrewardsofownershipareclassifiedasfinancelease. Such leases are capitalised at the inceptionof the leaseat lowerof the fairvalueor thepresentvalueoftheminimumleasepaymentsandaliabilityisrecognisedforanequivalentamount.Eachleaserentalpaidisallocatedbetweentheliabilityandtheinterestcostsoastoobtainaconstantperiodicrateofinterestontheoutstandingliabilityforeachyear.

As a lessor:

Lease income is recognised based on the leaseagreementsandischargedtoStatementofProfitandLoss

2.9 Investment Properties

Investment properties are properties held to earnrentals and/or for capital appreciation. Investmentproperties are measured initially at cost includingtransaction costs. Subsequent to initial recognition,investment properties are stated at cost lessaccumulated depreciation and impairment losses.Any gain or loss on disposal of investment propertyisdeterminedasthedifferencebetweennetdisposalproceedsandthecarryingamountofthepropertyandisrecognisedintheStatementofProfitandLoss

2.10 Depreciation

Depreciation on property, plant and equipment isprovided on straight-line method based on usefullife of the asset as prescribed in Schedule II to theCompaniesAct,2013.

For the assets acquired from Cochin Port Trust forInternational Ship Repair Facility (ISRF),depreciationis provided on the basis of remaining useful life asassessedbytechnicalexperts.

An item of property, plant and equipment and anysignificant part initially recognised is derecognisedupon disposal orwhen no future economic benefitsare expected from its use or disposal.Any gain/lossarising on derecognition of the asset is included inthe Statement of profit and loss when the asset isderecognised.Fully depreciated assets still in use areretainedinfinancialStatementsatresidualvalue.

Depreciationmethod,usefullivesandresidualvaluesare reviewed at each reporting date and adjustedprospectively,ifappropriate.

Management believes that useful life of assets aresame as those prescribed in Schedule II to theAct,exceptforcertaintypesofbuildingsandequipmentswhereinbasedontechnicalevaluation,usefullifehasbeen estimated to be different from that prescribed



in Schedule II of the Act.Useful life considered forcalculationofdepreciationforvariousassetsclassareasfollows:

Asset Class Useful LifeBuildings 3-60yearsPlantandequipment 5-15yearsFurnitureandfixtures 8-10yearsVehicles 8-10yearsOfficeequipment 3-10yearsDataProcessingEquipments 3-6yearsDocksandquays 15 yearsRailwaysidings 15 yearsElectricalinstallation 10yearsDrainageandwatersupply 15 yearsVessels 13-28years

2.11 Impairment of Assets

TheCompanyassessestheimpairmentofassetswithreferencetoeachcashgeneratingunit,ateachBalanceSheet date. If events or changes in circumstancesbasedoninternalandexternalfactorsindicatethatthecarryingvaluemaynotberecoverableinfull,thelossonaccountandtherecoverableamount,isaccountedforaccordingly.Therecoverableamountisthehigherofanasset’sfairvaluelesscostsofdisposalandvaluein use.

2.12 Non-current assets held for sale

Company classifies a non-current asset as held forsaleifitscarryingamountwillberecoveredprincipallythroughasaletransaction.Thisconditionisregardedasmetonlywhentheassetisavailableforimmediatesale in its present condition and its sale is highlyprobable.

Non-currentassetsincludingdiscontinuedoperations,classifiedasheldforsalearemeasuredatthelowerofthecarryingamountsandfairvalue lesscosts tosellandpresentedseparately inthefinancialstatements.Once classified as held for sale, the assets are notsubjecttodepreciationoramortisation.

Any profit or loss arising from the sale or re-measurementofdiscontinuedoperationsispresentedaspartofasinglelineiteminstatementofprofitandloss

2.13 Investment in subsidiary

TheCompanyhasaccountedforitssubsidiaryatcostin its standalone financial statements in accordancewithIndAS-27,SeparateFinancialStatements.

2.14 Inventories

(a) Rawmaterials,components,storesandsparesarevaluedatweightedaveragecostmethodornetrealisablevaluewhicheverislower.Provisionforobsolescence / non- usability / deterioration isdeterminedonthebasisoftechnicalassessmentmade by the management. Goods in transit isvalued at lower of cost or net realisable value.Stock ofmaterials in respect of constructionofdefence vessels wherein the cost incurred isreimbursedbytheownerareshownasreductionfrom the advances paid by the owner forconstructionofthevessel.

(b) Workinprogress:

WorkinprogressShipBuilding:-Workinprogressisrecognisedonlywhenthepercentageofphysicalcompletionislessthanthefinancialcompletion,inwhichcasethecostproportionatetoexcessofpercentageoffinancialcompletionoverphysicalcompletion is treated as Work in progress. Inthe case of IndigenousAircraft Carrier since allthe materials belongs to Indian Navy, work inprogressisnotrecognized.

Work in progress of ships/offshore structures underrepair, which have not reached 75% stage ofphysicalcompletionandgeneralengineeringjobsare valued at cost.Work- in- progress of shipswhere physical construction has not started isalsovaluedatcost.

(c) Loose tools in stock are valued at cost afterproviding for loss on revaluation estimated at30%ofbookvalue.



(d) Stock of scrap is valued at net realizable valueafter adjusting customsduty, if any, payableonthe scrap.

2.15 Financial instruments

Financial assets and liabilities are recognised whenthe Company becomes a party to the contractualprovisions of the instrument

Financial assets and liabilities are initially measuredat fair value. Transaction costs that are directlyattributable to the acquisition or issue of financialassets and financial liabilities (other than financialassets and financial liabilities at fair value throughprofitorloss)areaddedtoordeductedfromthefairvaluemeasuredoninitialrecognitionoffinancialassetorfinancialliability.

Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets are measured at fair value throughothercomprehensive income if thesefinancialassetsareheldwithinabusinesswhoseobjectiveisachievedbybothcollectingcontractualcashflowsthatgiveriseonspecifieddatestosolelypaymentsofprincipalandinterest on theprincipal amount outstanding andbysellingfinancialassets.

Financial assets at fair value through statement of profit and loss (FVTPL)

Financial assets are measured at fair value throughprofitor lossunless it ismeasuredatamortisedcostorat fairvaluethroughothercomprehensive incomeon initial recognition. The transaction costs directlyattributable to the acquisition of financial assetsand liabilities at fair value through profit or loss areimmediatelyrecognisedinstatementofprofitandloss.

Financial Assets

Financial assets at amortised cost

Financial assets are subsequently measured atamortisedcostifthesefinancialassetsareheldwithina business whose objective is to hold these assets

in order to collect contractual cash flows and thecontractual terms of the financial asset give rise onspecifieddatestocashflowsthataresolelypaymentsof principal and interest on the principal amountoutstanding.

Investments

AllequityinvestmentsinscopeofIndAS109FinancialInstruments, are measured at fair value. Equityinstrumentswhich are held for trading are classifiedas at FVTPL. For all other equity instruments, theCompanymaymakeanirrevocableelectiontopresentin other comprehensive income subsequent changesinthefairvalue.TheCompanymakessuchelectiononaninstrument-by-instrumentbasis.Theclassificationismadeoninitialrecognitionandisirrevocable

Trade Receivables

The Company assesses at each Balance Sheet datewhetherafinancialassetoragroupoffinancialassetisimpaired.IndAS109requiresexpectedcreditlosstobemeasuredthroughalossallowance.TheCompanyrecognises lifetime expected credit losses for alltrade receivables that do not constitute a financingtransaction. Impairment lossallowance isbasedonasimplified approach as permitted by IndAS 109.Asa practical expedient, the company uses a provisionmatrix to determine the impairment loss on theportfolioofitstradereceivables.

Full provision is made for all trade receivablesconsidereddoubtfulofrecoverywhenthedebtismorethanthreeyearsorif it isprobable/certainthatthedebtisnotrecoverable.

Where debts are disputed in legal proceedings,provision ismade ifanydecision isgivenagainst thecompany even if the same is taken up on appeal tohigherauthorities/courts.

Impairmentlossallowance(orreversal)thatisrequiredtoberecognisedatthereportingdateisrecognisedasanimpairmentlossorgainintheStatementofProfit&LossAccount.



Cash and cash equivalents

The Company considers all highly liquid financialinstruments,whicharereadilyconvertibleintoknownamounts of cash that are subject to an insignificantriskofchange invalueandhavingoriginalmaturitiesofthreemonthsorlessfromthedateofpurchase,tobecashequivalents.Cashandcashequivalentsconsistof balances with banks which are unrestricted forwithdrawalandusage.

Financial liabilities

Financial liabilities are measured at amortised costusingtheeffectiveinterestratemethod.

Equity Instruments

An equity instrument is a contract that evidencesresidual interest in the assets of the company afterdeducting all of its liabilities. Equity instruments arerecognised at the proceeds received net off directissue cost.

Off setting of financial instruments

Financialassetsandfinancialliabilitiesareoffsetandthenetamount is reported infinancial statements ifthere is a currently enforceable legal right to off setthe recognisedamounts and there is an intention tosettleonanetbasis,torealisetheassetsandsettletheliabilitiessimultaneously.

Foreign Currency Transactions

Functional & Presentation Currency

The financial statements are presented in IndianRupees (“INR”),which is the functional currencyandpresentationcurrencyoftheCompany.

Transactions & Balances:

Foreign exchange transactions are recorded infunctional currency adopting the exchange rateprevailing on the dates of respective transactions.Monetory items denominated in foreign currenciesattheyearendarere-measuredattheexchangerateprevailing on the balance sheet date.Nonmonetaryforeigncurrencyitemsarecarriedatcost.Anyincome

orexpenseonaccountofexchangedifferenceeitheronsettlementoronrestatement isrecognised inthestatementofProfitandLoss.

Derivative instruments and hedge accounting:

The Company designates certain foreign exchangeforwardcontractsashedgeinstrumentsinrespectofforeignexchangerisks.Thesehedgesareaccountedforascashflowhedges.Derivativesareinitiallyrecognisedatfairvalueonthedateaderivativecontactisenteredinto and are subsequently re-measured to their fairvalueattheendofeachreportingperiod.

Theuseof foreigncurrencyandderivativecontractsis governed by theCompany’s foreign exchange riskmanagementpolicyapprovedbytheBoardofDirectorswhich providewritten directives on the use of suchfinancial derivatives consistent with the Company’srisk management strategy. The company does notuse derivative financial instruments for speculativepurposes.

The hedge instruments are designated anddocumentedashedgesattheinceptionofthecontract.Theeffectivenessofhedgeinstrumentstoreducetheriskassociatedwiththeforeigncurrencyexposurethatisbeinghedgedisassessedandmeasuredatinceptionand on an ongoing basis. The ineffective portion ofdesignatedhedgesarerecognisedimmediatelyintheStatementofProfitandLoss.

Theeffectiveportionofchangeinthefairvalueofthedesignated hedging instrument is recognised in theOtherComprehensiveIncomeandaccumulatedundertheheadingcashflowhedgereserve.

Hedgeaccounting isdiscontinuedwhen thehedginginstrumentexpiresorissold,terminatedorexercisedwithout replacement or rollover (as part of hedgingstrategy), or if its designationas ahedge is revoked,orwhen the hedge no longermeets the criteria forhedge accounting. Any gain or loss recognised inOther Comprehensive Income and accumulated inequity till that time remains and is recognised inStatement of Profit and Loss when the forecasted



transactionultimatelyaffectstheprofitorloss.Whenaforecastedtransactionisnolongerexpectedtooccur,the cumulative gain or loss accumulated in equity istransferredtotheStatementofProfitandLoss.

2.16 Advance/progress payments received

Advance/progresspaymentsreceivedfromcustomersinrespectofrepairworkofships/offshorestructuresare shown as deduction from the amount of workin progress in respect of income recognized underproportionatecompletionmethod.Inthecaseofshipbuilding, the advance payment received is adjustedonlywhentheshipisinvoiced.

2.17 Provision , Contingent Liabilities and Contingent assets

A provision is recognised if, as a result of a pastevent, the Company has a present legal obligationthatcanbeestimatedreliably,andit isprobablethatan outflow of economic benefitswill be required tosettletheobligation.Provisions(excludingretirementbenefits and compensated leave) are not discountedto its presentvalue and are determined by the bestestimateoftheoutflowofeconomicbenefitsrequiredtosettletheobligationatthereportingdate.Thesearereviewedateachreportingdateadjustedtoreflectthecurrentbestestimates.

Provisiontowardsguaranteeclaimsinrespectofships/smallcraftsdeliveredwhereverprovidedmaintainedisbasedontechnicalestimation.Fortheshipsdelivered,guarantee claims are covered by way of insurancepoliciescoveringtheguaranteeperiodoncasetocasebasis,whereverrequired.

Inthenormalcourseofbusiness,contingentliabilitiesmay arise from litigations and other claims againstthe Company. Where the potential liabilities havea low probability of crystallizing or are very difficultto quantify reliably, we treat them as contingentliabilities. Such liabilities are disclosed in the notesbut are not provided for in the financial statements.Althoughtherecanbenoassuranceregardingthefinaloutcomeof the legalproceedings,wedonotexpect

them to have a materially adverse impact on ourfinancial position or profitability.The Company doesnot recognise a contingent liability but discloses itsexistenceinthefinancialstatements.

Contingentassetsareneitherrecognisednordisclosed.However, when realisation of income is virtuallycertain,relatedassetisrecognised

2.18 Revenue Recognition

a) Contracts for the construction of ships and small crafts (Other than Indigenous Aircraft Carrier)

Theincomefromshipbuildingisrecognizedonpercentageofcompletionmethod,intheproportion the cost incurred for the workperformeduptothereportingdatebeartotheestimatedtotalcontractcost,consideringthe physical progress or financial progress,whicheverislower.Wherecurrentestimatesoftotalcontractcostsandrevenueindicatealoss,provisionismadefortheentireloss,irrespectiveoftheamountofworkdone.

b) Construction of Indigenous Aircraft Carrier

In the case of construction of IAC whichis partly fixed price basis and partly costplus basis, the income from fixed price isrecognisedonthepercentageofcompletionmethod.

Mark up from cost plus part of contractactivities for materials and designoutsourcingarerecognisedwhenpaymentstowards the same are made. Cost ofmaterials, value of design outsourcing andother expenses incurred for the vesselwhicharerecoverableseparatelyfromNavyischargedofftostatementofProfitandLosswhenmaterialsareconsumed/activitiesareperformed/expenses are incurred and aregrossedupwiththevalueofworkdoneandrecognisedasincome.



c) Contracts for repair of ships/ Offshore structures:Income from repair of ships /Offshorestructures is recognized based onproportionate completion method whenproportionate performance of each shiprepair activity exceeds 75% after takinginto consideration possible contingencieswith reference to the realizable value ofwork done. The proportionate progressis measured by the Company’s technicalevaluation of the percentage of physicalcompletionofeach job. Inthecaseofshiprepair contracts completed and invoicessettled during theyear, income recognizedis net of reductions due to price variationadmitted. Inthecaseofunsettled invoices,the income is recognised net of estimatedamountofreductions.Differences,ifany,onsettlement are adjusted against income intheyearofsettlement.

d) Government GrantsGovernment grants are recognised whenthere is reasonable assurance that theCompany will comply with the conditionsattachingtothemandthatthegrantswillbereceived.Government grants are recognised inStatementofProfitandLossonasystematicbasisovertheperiodsinwhichtheCompanyrecognises as expenses the related costsfor which the grants are intended tocompensate. Where the Grant relates toanassetvalue, it is recognisedasdeferredincome, and amortised over the expecteduseful life of the asset. Other grants arerecognisedinthestatementofProfit&Lossconcurrent to the expenses towhich suchgrantsrelate/areintendedtocover.Government grants that are receivableas compensation for expenses or losses

already incurred or for the purpose ofgiving immediate financial support to theCompany with no future related costsare recognised in statement of profit &loss in the period in which they becomereceivable.

e) Liquidated damages and interest on advances

No income has been recognized onaccount of (a) interest on advances givenand (b) liquidated damages, where theleviesdependondecisions regarding forcemajeure condition of contract. These areaccounted for on completion of contractsand/orwhenfinaldecisionsaretaken.

f) Accounting for insurance claims

(i) Warranty/Builder Risk claims

In the case of guarantee defectscovered under warranty insurancepolicies or claims under builders riskInsurance Policies, the insuranceclaims lodged will be recognized inthe financial statments in the year inwhich the survey is completed andthe probable amount of settlementintimatedbytheinsuranceCompany.

(ii) Other Insurance Policies

InthecaseofotherInsurancePolicieslikeAssetInsurance,TransitInsurance,Marine Insurance, Cash Insuranceetc., the claims are recognized in thethe financial statments on settlementof theclaimsbywayof receiptof theamountfromtheInsuranceCompany.

g) Others

Dividend income is recognized when theCompany’s right to receive payment hasbeenestablished.



2.19 Employee benefits

Employee benefits consist of salaries and wages,contribution to provident fund, superannuationfund, gratuity fund, towards medical assistance,which are short term in nature and contributiontowardscompensatedabsences,whichislongtermin nature.

Post-employment benefit plans

Defined Contribution plans

Defined contribution to Employees Pension schemeforeligibleemployeesaremadetoCSLSuperannuationPensionTrustforExecutivesandSupervisorsandCSLWorkmenPensionTrustandarechargedasexpenseastheyfalldue.SuchbenefitsareclassifiedasDefinedContributionSchemesastheCompanydoesnotcarryany further obligations, apart from the contributionsmade.

The Company also makes contribution towardsprovidentfund,insubstanceadefinedcontributionretirement benefit plan. The provident fund isadministeredbytheTrusteesoftheCochinShipyardLimited Employees Contributory Provident FundTrust. The rules of the Company’s provident fundadministeredbytheTrust,requirethatiftheBoardof Trustees are unable to pay interest at the ratedeclared by the Employees’ Provident Fund bythe Government under para 60 of the Employees’Provident Fund Scheme, 1952 for the reason thatthe return on investment is less or for any other reason, then the deficiency shall be made goodby the Company. Having regard to the assets ofthe fund and the return on the investments, theCompanydoesnotexpectanydeficiencyasat theyearend.

The Company also makes contribution towardsEmployees Medical Assistance Trusts which arecharged as expense as they fall due. Such benefitsareclassifiedasDefinedContributionSchemesastheCompanydoesnotcarryanyfurtherobligations,apartfromthecontributionsmade.

Defined benefit plans

TheCompanyprovidesforgratuity,adefinedbenefitretirement plan covering eligible employees. Theliability or asset recognised in the balance sheet inrespectofitsdefinedbenefitplanisthepresentvalueof the defined benefit obligation at the end of thereportingperiodlessthefairvalueofplanassets.Thedefinedbenefitobligationiscalculatedperiodicallybyactuariesusingtheprojectedunitcreditmethod.

Thepresentvalueofthesaidobligationisdeterminedby discounting the estimated future cash outflows,using market yields of government bonds that havetermsapproximatingthetermsoftherelatedliability.

The interest income / (expense) are calculated byapplyingthediscountratetothenetdefinedbenefitliabilityorasset.Thenetinterestincome/(expense)onthenetdefinedbenefitliabilityorassetisrecognisedintheStatementofProfitandloss.

Remeasurement gains and losses arising fromexperience adjustments and changes in actuarialassumptionsarerecognisedintheperiodinwhichtheyoccur, directly in other comprehensive income.Theyare includedinretainedearnings intheStatementofChangesinEquityandintheBalanceSheet.

Changes in the present value of the defined benefitobligation resulting from plan amendments orcurtailmentsarerecognisedimmediatelyinStatementofprofitandlossaspastservicecost.

Other employee benefits

Compensated absences

TheCompanyhasapolicyoncompensatedabsencewhich are both accumulating and non-accumulatingin nature. The expected cost of accumulatingcompensated absence is determined by Actuarialvaluation performed by an independent actuary ateach Balance Sheet date using projected unit creditmethod on the additional amount expected to bepaid/availedasaresultofunusedentitlementthathasaccumulated at the Balance Sheet date. Expense on



non-accumulatingcompensatedabsenceisrecognisedintheperiodinwhichtheabsencesoccur.

2.20 Borrowing cost

General and specific borrowing costs directlyattributabletoacquisition/constructionorproductionofqualifyingassets(netofincomeearnedontemporarydeployment of funds) are capitalized as part of costof such assets upto the date when such assets areready for the intendeduse.Aqualifyingasset isonethatnecessarilytakessubstantialperiodoftimetogetready for its intendeduse.All otherborrowingcostsarechargedtotheStatementofProfitandLossintheperiodinwhichtheyareincurred.Borrowingcostalsoincludesexchangedifferencestotheextentregardedasanadjustmenttotheborrowingcosts

2.21 Corporate Social Responsibility

TheCompanyhasoptedtochargeitsCorporateSocialresponsibility (CSR) expenditure to the Statement ofProfit&Loss,exceptinrespectofexpenditureincurredagainst the non-lapsable provision held under theguidelinesofDepartmentofPublicEnterprises(DPE)

2.22 Prior period adjustment

Priorperiodadjustmentsduetoerrors,havingmaterialimpact on the financial affairs of the Company, arecorrectedretrospectivelybyrestatingthecomparativeamountsforpriorperiodspresentedinwhichtheerroroccurred or if the error occurred before the earliestperiodpresented,byrestatingtheopeningstatementoffinancialposition.

2.23 Taxes on Income

Income tax

Income tax expense comprises current tax expenseand the net change in the deferred tax asset orliability during the year.Current and deferred taxesarerecognisedinStatementofProfitandLoss,exceptwhentheyrelatetoitemsthatarerecognisedinothercomprehensive incomeordirectly inequity, inwhichcase,thecurrentanddeferredtaxarealsorecognisedin other comprehensive incomeor directly in equity,respectively.

Current tax

Currenttaxismeasuredattheamountoftaxexpectedtobepayableon the taxable income for theyear asdetermined in accordance with the provisions ofthe Income Tax Act, 1961.Current tax assets andcurrenttaxliabilitiesareoffsetwhenthereisalegallyenforceable right to set off the recognized amountsand there is an intention to settle the asset and theliabilityonanetbasis.

Deferred tax

Deferred incometax is recognisedusing theBalanceSheet approach. Deferred income tax assets andliabilities are recognised for deductible and taxabletemporarydifferencesarisingbetweenthetaxbaseofassetsandliabilitiesandtheircarryingamount,exceptwhen thedeferred income taxarises from the initialrecognition of an asset or liability in a transactionthatisnotabusinesscombinationandaffectsneitheraccountingnortaxableprofitorlossatthetimeofthetransaction.

Deferredtaxassetsarerecognisedonlytotheextentthat it is probable that either future taxable profitsor reversalofdeferredtax liabilitieswillbeavailable,against which the deductible temporary differences,andthecarryforwardofunusedtaxcreditsandunusedtaxlossescanbeutilised.

The carrying amount of a deferred tax asset shallbe reviewed at the end of each reporting date andreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredincometaxassettobeutilised.

Deferredtaxassetsandliabilitiesaremeasuredusingthe tax rates and tax laws that have been enactedorsubstantivelyenactedby theendof thereportingperiod and are expected to apply when the relateddeferred tax asset is realised or the deferred taxliabilityissettled.

Deferred tax assets and liabilities are off set whenthere is a legally enforceable right to offset currenttax assets and liabilities andwhen the deferred taxbalancesrelatetothesametaxationauthority.



Minimum Alternate Tax credit is recognised asdeferredtaxassetonlywhenandtotheextentthereisconvincingevidencethattheCompanywillpaynormalincometaxduringthespecifiedperiod.Suchasset isreviewedateachBalanceSheetdateandthecarryingamountoftheMATcreditassetiswrittendowntotheextentthereisnolongeraconvincingevidencetotheeffect that theCompanywill paynormal income taxduringthespecifiedperiod.

2.24 Earnings Per Share

Basic earnings per share is computed by dividingprofitorlossattributabletoequityshareholdersoftheCompanybytheweightedaveragenumberofequitysharesoutstandingduringtheyear.TheCompanydidnot have any potentially dilutive securities in any oftheyearspresented.

2.25 Segment Reporting

Operating segments are defined as components ofanenterpriseforwhichdiscretefinancial informationis available that is evaluated regularly by the chiefoperatingdecisionmaker,indecidinghowtoallocateresourcesandassessingperformance.TheCompany’schief operating decision maker is the Chairman &ManagingDirector.

The Company has identified business segments(industry practice) as reportable segments. Thebusiness segments comprise: 1) ShipBuilding and2)RepairofShips/offshorestructures.

Segmentrevenue,segmentexpenses,segmentassetsandsegmentliabilitieshavebeenidentifiedtosegmentson the basis of their relationship to the operatingactivities of the segment. Revenue, expenses, assetsandliabilitieswhichrelatetotheCompanyasawholeand are not allocable to segments on a reasonablebasishavebeenincludedunder“unallocatedrevenue/expenses/assets/liabilities”.

2.26 Statement of cash flow

Cash Flows are reported using the IndirectMethod,whereby profit/loss before tax is adjusted for theeffect of transactions of non-cash nature and anydeferralsoraccrualsofpastorfuturecashreceiptsor

paymentsanditemsofincomeorexpensesassociatedwith investing or financial cash flows. Cash flowsfrom operating, investing and financial activities ofthe Company are segregated based on the availableinformation.

Forthepurposeofstatementofcashflow,Cashandcashequivalentcomprisecashatbanksandonhandand short-term deposits with an original maturityof three months or less, which are subject to aninsignificantriskofchangesinvalue,netofoutstandingbank overdrafts, if any. Bank overdrafts, if any, aredisclosedwithinborrowingsincurrentliabilitiesintheBalanceSheet

2.27 Dividend to equity shareholders

Dividend to equity shareholders is recognised as aliability and deducted from shareholders’ equity, intheperiodinwhichthedividendsareapprovedbytheequityshareholdersinthegeneralmeeting.

2.28 Recent accounting pronouncements - Standards issued but not yet effective

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:

On 28 March 2018, MCA has notified the Companies(Indian Accounting Standards) Amendment Rules, 2018containing Appendix B to Ind AS 21, Foreign currencytransactionsandadvanceconsiderationwhichclarifiesthedateofthetransactionforthepurposeofdeterminingtheexchange rate to use on initial recognition of the relatedasset,expenseor income,whenanentityhas receivedorpaidadvanceconsiderationinaforeigncurrency.

Theamendmentwillcomeintoforcefrom1April2018.TheCompanyisevaluatingtherequirementoftheamendmentandthe impactonthefinancialstatements.TheeffectonadoptionofIndAS21isexpectedtobeinsignificant.

Ind AS 115, Revenue from Contract with Customers

IndAS115,RevenuefromContractwithCustomers:

On 28 March 2018, Ministry of Corporate Affairs hasnotified the Ind AS 115, Revenue from Contract withCustomers.



The coreprinciple of IndAS115 is that an entity shouldrecognizerevenuetodepictthetransferofpromisedgoodsand services to customers in an amount that reflects theconsiderationtowhichtheentityexpectstobeentitledinexchange for those goods and services. Further the newstandard requires enhanceddisclosures about the nature,amount,timinganduncertaintyofrevenueandcashflowsarisingfromtheentity’scontractswithcustomers.

Thestandardpermitstwopossiblemethodsoftransition:

-Retrospectiveapproach-Underthisapproachthestandardwill be applied retrospectively to each prior reportingperiodpresentedinaccordancewithIndAS8-Accountingpolicies,changesinaccountingestimatesanderrors.

-Retrospectivelywithcumulativeeffectofinitiallyapplyingthe standard recognized at the date of initial application(Cumulativecatch-upapproach)

Theeffectivedate foradoptionof IndAS115 isfinancialperiodsbeginningonorafter1April2018.

Inviewofthesignificantcomplexitiesinvolved,theCompanyisintheprocessofevaluatingtheimpactonapplicationofIndAS115onitsfinancialstatements.



Note3:Property,PlantandEquipment

(`inlakhs))Gross carrying amount Depreciation Net Carrying amount

ParticularsAs at

1st April 2017

Additions/ adjustments during the

year

Disposal/ adjustments during the

year

As at 31st

March 2018

As at 1st April

2017

For the year

Adjust-ment/ (with-

drawal)

As at 31st

March 2018

As at 31st

March 2018

As at 31st

March 2017

Owned Assets

Land(Freehold) 587.54 - - 587.54 - - - - 587.54 587.54

Buildings 9,377.91 243.56 - 9,621.47 802.43 670.09 - 1,472.52 8,148.95 8,575.48

Plantandequipment 16,798.49 452.08 3.56 17,247.01 2,707.00 1,426.70 - 4,133.70 13,113.31 14,091.49

Furnitureandfixtures 813.24 64.26 1.67 875.83 165.35 102.94 1.03 267.26 608.57 647.89

Vehicles 344.49 177.14 27.77 493.86 92.74 53.67 3.23 143.18 350.68 251.75

Officeequipment 184.19 24.81 0.07 208.93 74.49 30.27 - 104.76 104.17 109.70

- - -

Others - - -

DataProcessingEquipments 727.21 142.54 0.61 869.14 324.29 177.45 0.02 501.72 367.42 402.92

Docksandquays 4,466.45 - - 4,466.45 644.32 299.41 - 943.73 3,522.72 3,822.13

Railwaysidings 1.10 - - 1.10 - - - - 1.10 1.10

Electricalinstallation 1,182.08 108.73 - 1,290.81 444.64 156.02 - 600.66 690.15 737.44

Drainageandwatersupply 6.67 - - 6.67 - - - - 6.67 6.67

Vessels 19.74 - - 19.74 1.64 1.36 - 3.00 16.74 18.10

SubTotal 34,509.11 1,213.12 33.68 35,688.55 5,256.90 2,917.91 4.28 8,170.53 27,518.02 29,252.21

Leased assets and assets on leased premises

Buildings 838.22 - 838.22 165.53 85.32 - 250.85 587.37 672.69

Plantandequipment 85.89 27.56 - 113.45 25.84 13.27 - 39.11 74.34 60.05

Docksandquays 9.62 - - 9.62 8.35 - 8.35 1.27 1.27

Electricalinstallation 329.54 - 329.54 30.46 33.36 - 63.82 265.72 299.08

SubTotal 1,263.27 27.56 - 1,290.83 230.18 131.95 - 362.13 928.70 1,033.09

Total 35,772.38 1,240.68 33.68 36,979.38 5,487.08 3,049.86 4.28 8,532.66 28,446.72 30,285.30



(` inlakh)s) Gross carrying amount Depreciation Net Carrying amount

ParticularsAs at

1st April 2017


year


year

As at 31st

March 2018

As at 1st April

2017

For the year

Adjust-ment/ (with-

drawal)

As at 31st

March 2018

As at 31st

March 2018

As at 31st

March 2017

Owned Assets

Land(Freehold) 587.54 - - 587.54 - - - - 587.54 587.54

Buildings 8,241.50 1,137.25 0.84 9,377.91 377.31 425.17 0.05 802.43 8,575.48 7,864.19

Plantandequipment 15,163.91 1,683.66 49.08 16,798.49 1,332.65 1,386.76 12.41 2,707.00 14,091.49 13,831.26

Furnitureandfixtures 599.27 214.45 0.48 813.24 75.65 89.99 0.29 165.35 647.89 523.62

Vehicles 227.23 123.48 6.22 344.49 53.18 43.85 4.29 92.74 251.75 174.05

Officeequipment 156.64 28.48 0.93 184.19 37.66 37.32 0.49 74.49 109.70 118.98

- -

Others - -

DataProcessingEquipments 565.14 162.78 0.71 727.21 153.57 171.28 0.56 324.29 402.92 411.57

Docksandquays 4,466.45 - - 4,466.45 344.91 299.41 - 644.32 3,822.13 4,121.54

Railwaysidings 1.10 - - 1.10 - - - - 1.10 1.10

Electricalinstallation 981.54 200.54 - 1,182.08 216.26 228.38 - 444.64 737.44 765.28

Drainageandwatersupply 6.67 - - 6.67 - - - - 6.67 6.67

Vessels 37.57 - 17.83 19.74 1.02 2.11 1.49 1.64 18.10 36.55

SubTotal 31,034.56 3,550.64 76.09 34,509.11 2,592.21 2,684.27 19.58 5,256.90 29,252.21 28,442.35


Buildings 1,155.76 72.79 390.33 838.22 93.28 100.26 28.01 165.53 672.69 1,062.48

Plantandequipment 77.18 8.71 - 85.89 13.32 12.52 - 25.84 60.05 63.86

Docksandquays 9.62 - - 9.62 7.72 0.63 - 8.35 1.27 1.90

Electricalinstallation 82.63 246.91 - 329.54 9.68 20.78 - 30.46 299.08 72.95

SubTotal 1,325.19 328.41 390.33 1,263.27 124.00 134.19 28.01 230.18 1,033.09 1,201.19

Total 32,359.75 3,879.05 466.42 35,772.38 2,716.21 2,818.46 47.59 5,487.08 30,285.30 29,643.54



Landincludesthevalueof(a)landallottedonleasebasisto(i)BharatiyaVidyaBhavan(0.69045hectare)(ii)M/sIndianOilCorporationLtd(0.620hectare)forlayingpipeline(iii)landleasedtoM/sCochinAirProducts(0.30hectare)and(b)landleasedtoKeralaStateElectricityBoard(0.47hectare).

Valueof land includesvalueofbuildingsacquiredalongwith the land forwhichdepreciationhasnotbeenprovidedasthevalueisnotseparatelyavailableandmostofthesebuildingsarelikelytobedemolishedforputtingupfacilitiesforthefactory.

AssetstakenoverfromCochinPortTrust(CoPT)(₹1291.52lakhs)havebeenvaluedandlifeassessedbytechnicalexperts.Thislifehasbeentakenasabaseforarrivingattheremainingusefullifeforprovidingdepreciationfortheseassets.Theseassets togetherwithassets constructed/installedon land takenon lease fromCoPT,havebeendisclosed separatelyasassetsonleasedpremisesinthenoteno3toProperty,Plant&Equipments.

TheCompanyhascreatedmortgagefor₹12300LakhsonthelandedpropertiesoftheCompanyassecurityforthetaxfreebondsissuedbytheCompanyduringtheyear2013-14.

Note4:Capitalwork-in-progress

(`inlakhs)

Particulars As at 31.03.2018 As at 31.03.2017

Plantandmachinery,BuildingsandCivilworks 11,285.07 5,299.88

Capitalyarditems 199.27 92.45

Total 11,484.34 5,392.33

Note5:OtherIntangibleassets

(`inlakhs)

Particulars

Gross carrying amount Amortisation Net Carrying amount

As at 1st April

2017

Addi-tions/ ad-justments during the

year

Disposal/ adjust-ments

during the year

As at 31st

March 2018

As at 1st April

2017

For the year

Adjust-ment/ (with-

drawal)

As at 31st

March 2018

As at 31st

March 2018

As at 31st

March 2017

Internallygeneratedweldprocedure

27.67 - 27.67 10.75 9.22 - 19.97 7.70 16.92

Computer software 1,243.16 123.59 - 1,366.75 984.19 196.20 1,180.39 186.36 258.97

Righttouse-landandshiprepairfacility

7,000.00 - 7,000.00 500.00 242.31 - 742.31 6,257.69 6,500.00

8,270.83 123.59 - 8,394.42 1,494.94 447.73 - 1,942.67 6,451.75 6,775.89



(`inlakhs)

Particulars


As at 1st April

2016

Addi-tions/ ad-justments during the

year

Disposal/ adjust-ments

during the year

As at 31st

March 2017

As at 1st April

2016

For the year

Adjust-ment/ (with-

drawal)

As at 31st

March 2017

As at 31st

March 2017

As at 31st

March 2016


27.67 - 27.67 1.52 9.23 - 10.75 16.92 26.15

Computersoftware 1,079.50 163.66 - 1,243.16 477.65 506.54 - 984.19 258.97 601.85Righttouse-landandshiprepairfacility

7,000.00 - 7,000.00 250.00 250.00 - 500.00 6,500.00 6,750.00

8,107.17 163.66 - 8,270.83 729.17 765.77 - 1,494.94 6,775.89 7,378.00

TheRighttouseoflandandshiprepairfacilityshownunderIntangibleAssetsrepresentstheupfrontfeepaidtoCochinPortTrusttowardssettingupofInternationalShipRepairFacility(ISRF)project,tobeamortisedovertheperiodofleasewhichwasfurtherextendedbasedonthedateofobtainingofEnvironmentalClearance.AsallenvironmentalclearancesforISRFareobtainedasonJanuary09,2018,theleaseperiodof30yearseffectivelystartsfromthisdate.

Note6:Investments-NonCurrent(`inlakhs)

Particulars As at 31.03.2018 As at 31.03.2017 Unquoted (Fully Paid up)Investment in equity instruments a) At Fair Value through statement of Profit and LossEquitysharesinsubsidiarycompanyHooghlyCochinShipyardLtd-16280000Equitysharesof₹10each 1,628.00 0.00b) At Fair Value Through Other Comprehensive IncomeCochinShipyardEmployeesConsumerCo-operativeSocietyLimited2175'BClass'sharesof₹100each 2.18 2.18

KeralaEnviroInfrastructureLimited-70000equitysharesof₹10each 7.00 7.00CochinWastetoEnergyPrivateLimited-100000equitysharesof₹10each 10.00 10.00LessdiminutioninvalueofInvestmentCochinWastetoEnergyPrivateLimited (10.00) (10.00)Total 1,637.18 9.18 Aggregatevalueofunquotedinvestment 1,647.18 19.18 Aggregatevalueofimpairmentinvalueofinvestment 10.00 10.00 Consideringtheindicatorsofthevalueofaninvestmentsuchasinvestee’sassets,resultsetc.adecline,otherthantemporary,inthevalueofinvestmentinCochinWastetoEnergy(P)LtdisnoticedandaccordinglyfairvalueisconsideredasNil.

M/sHooghlyCochinShipyardLimited(HCSL)asubsidiaryofCochinShipyardLtd,wasincorporatedonOctober23,2017asanarrangementbetweenM/sCochinShipyardLtd (CSL)andM/sHooghlyDock&PortEngineersLimited (HDPEL)whereinCSLhas16280000equitysharesoffacevalueof₹10eachforcash(74%)andHooghlyDock&PortEngineersLimitedhas5720000equitysharesoffacevalueof₹10eachforconsiderationotherthancash(26%)andthisinvestmentinHCSLisaccountedatcostasperIndAS27-SeparateFinancialStatements.



Note7:Loans-NonCurrent(ìnlakhs)


Unsecured,consideredgood:

Securitydeposits 66.89 55.94

Employeeadvances

Loanstorelatedparties 0.00 2.30

Otheremployees 80.88 87.15

Total 147.77 145.39

Note8:Incometaxassets/liability(net)(ìnlakhs)


Noncurrenttaxassets

Advanceincometaxnetofprovisions 5,400.03 3,601.27

Currenttaxassets/liabilities

Advanceincometaxnetofprovisions (1,071.47) 1,694.74

IncometaxrecognisedintheStatementofprofitandloss(ìnlakhs)

Particulars For the year ended March 31,2018 For the year ended March 31,2017

Currenttax:

Currentincometaxcharge 22,406.57 16,394.91

Adjustmentinrespectofprioryears 5.43 (46.56)

Total(A) 22,412.00 16,348.35

Deferredtax:

Inrespectofcurrentyear (1,601.00) 837.00

Total(B) (1,601.00) 837.00

IncometaxexpenserecognisedintheStatementofProfitandLoss(A+B) 20,811.00 17,185.35



Theincometaxexpensefortheyearcanbereconciledtotheaccountingprofitasfollows:-

(ìnlakhs)

Particulars For the year ended March 31,2018

For the year ended March 31,2017

Profitbeforetax 60,486.01 49,340.05

[email protected]% 20,933.00 17,075.61

Effectofexpensesthatarenotdeductibleindeterminingtaxableprofit 5,312.99 3,470.33

Effectofexpensesthatareallowableindeterminingtaxableprofit (2,642.89) (5,297.65)EffectofexpensesincurredonCorporateSocialResponsibilitynotdeductibleindeterminingtaxableprofit 296.62 250.41

Effectofincomethatisexemptfromtaxation (64.32) (35.87)

Others (1,428.83) 932.08

22,406.57 16,394.91

Adjustmentsrecognisedinthecurrentyearinrelationtothecurrenttaxofprioryears 5.43 (46.56)

Adjustmentsforchangesinestimatesofdeferredtaxassets (1,601.00) 837.00

IncometaxexpenserecognisedintheStatementofProfitandLoss 20,811.00 17,185.35

Note9:Deferredtaxassets(net)(ìnlakhs)


Deferredtaxliabilities 3,954.57 4,072.90

Deferredtaxassets (8,286.84) (6,506.33)

Total (4,332.27) (2,433.43)

Deferredtaxliabilities/(assets)inrelationto2017-18(ìnlakhs)

Particulars Opening balance

Recognised in Statement of

Profit and Loss


EquityClosing Balance

Provisions (5,226.67) (2,212.21) 0.00 (7,438.88)

Property,plantandequipment 4,045.04 (87.00) 0.00 3,958.04

Intangibleassets 27.86 (31.33) 0.00 (3.47)

Others (1,279.66) 729.54 (297.84) (847.96)

Total (2,433.43) (1,601.00) (297.84) (4,332.27)




Particulars Opening balanceRecognised in

Statement of Profit and Loss

Closing Balance

Provisions (6,676.87) 1,450.20 (5,226.67)

Property,plantandequipment 4,070.73 (25.69) 4,045.04

Intangibleassets 135.09 (107.23) 27.86

Others (799.38) (480.28) (1,279.66)

Total (3,270.43) 837.00 (2,433.43)

Note10:Othernon-currentassets(`inlakhs)


Unsecured, considered good

Capitaladvances 6,641.69 1,674.48

Advancesotherthancapitaladvances:

Securitydeposits 209.75 167.85

Advanceleaserentals 575.59 363.68

DepositswithCustomsdepartment 261.22 261.22

Total 7,688.25 2,467.23



Note11:Inventories(`inlakhs)


RawMaterialsandcomponents* 11,301.78 5,707.70

Less:Provisionforobsolescence,non-usability,deteriorationandreductioninvalueofinventory (331.27) (467.37)

Goods-intransit* 5,795.66 327.40

16,766.17 5,567.73

Work-in-progress(Valuedatcost) 6,284.46 8,794.85

Work-in-progress(Valuedatnetrealisablevalue) 6,787.00 2,649.78

13,071.46 11,444.63

Stores&Spares* 586.36 637.76

Less:Provisionforobsolescence,non-usability,deteriorationandreductioninvalueofinventory (27.97) (13.81)

Goods-intransit* 82.72 14.80

641.11 638.75

LooseTools* 794.58 893.32

Scrap* 182.35 102.66

Total 31,455.67 18,647.09

*ValuationofinventoriesaredoneinaccordancewithAccountingPolicyno.2.14giveninNoteno.2

(i)Inventorydoesnotincludestockofrawmaterialsandboughtoutcomponentsprocuredunder“costplus”partoftheIACcontractamountingto₹71053.76lakhs(previousyear₹57107.65lakhs)heldonbehalfofIndianNavylyingwiththeCompanyandisshownunderAdvancesfromIndianNavyforIndigenousAircraftCarrier.

(ii)Maintenancesparesincludedintheinventoryrepresentsparesofgeneralnatureandarenotrelatedtoaparticularasset.

Note12:Investments-Current(`inlakhs)


InvestmentinMutualFunds 0.16 0.00Total 0.16 0.00DetailsofMutualFunds Fund Value Fund Value

UTI-TreasuryAdvantageFund 0.16 -



Note13:TradeReceivables-Current(ìnlakhs)


UnsecuredConsideredgood:Basedoninvoice 25,473.28 25,828.58Basedonproportionatecompletionmethod 32,539.48 4,870.64Considereddoubtful 9,263.32 5,987.03Less:Allowancefordoubtfuldebts(Expectedcreditlossallowance) (9,263.32) (5,987.03)Unsecured,considereddoubtful(Net) 0.00 0.00Total 58,012.76 30,699.22

Tradereceivables includedebtsamountingto₹32539.48 lakhs (previousyear₹4870.64 lakhs)onaccountof incomerecognizedunderproportionatecompletionmethodpertainingtoincompletevessels,againstwhichstagepaymentsreceivedamountingto₹88490.06lakhs(previousyear₹33928lakhs)forcompletedstageandisshownasadvanceundercurrentliabilities.

Tradereceivablesarenon-interestbearingandreceivableinnormaloperatingcycle.

Movementintheexpectedcreditlossallowance(ìnlakhs)


Openingbalance 5,987.03 5,300.14Add:Provisionmade/transferduringtheyear 3,832.20 1,193.09Less:Amountcollected/reversalofprovision 555.91 506.20Closing Balance 9,263.32 5,987.03

Note14:CashandCashequivalents(ìnlakhs)


Cashonhand 0.12 -BalancewithBanksIncurrentaccount 1,249.46 1,641.83IncurrentaccountonbehalfofIndianNavy 62,807.09 29,656.32Termdepositswithoriginalmaturityoflessthan three months 15,137.39 36,300.00

Total 79,194.06 67,598.15

Balanceincurrentaccountincludes₹3.84lakhs(previousyearNil)beingIPOproceedsandTermdepositswithoriginalmaturityoflessthanthreemonthsincludes₹9437.39lakhs(previousyearNil)beingproceedsfromIPOincludinginterestaccrued.

FundsreceivedfromIndianNavyfortheconstructionofIndigenousAircraftCarrierareheldinaseparateaccountandisseparatelydisclosed.

BankbalanceinCurrentAccountincludes₹838.65lakhtobeadjustedagainstGSTliabilityondeliveryofIACtowardsInputTaxCreditavailedonCostPlusprocurementsforIACfundedbyIndianNavy.



Note15:Bankbalancesotherthancashandcashequivalents(ìnlakhs)


TermDepositswithbankswithoriginalmaturitymorethan3monthsandlessthan12months 269,840.19 131,530.99

Total 269,840.19 131,530.99

Depositswithbankswithmaturityupto12months,includes₹74689.22lakhs(previousyearNil)relatingtoproceedsfromIPOincludinginterestaccrued.

Depositswithbankswithmaturityupto12months,includes₹76.96lakhs(previousyear₹71.99lakhs)islienmarkedinfavourofTheRegistrarofHighCourtofKerala.

Note16:Loans-Current

(ìnlakhs)


Unsecured,consideredgood

Employeeadvances

Loanstorelatedparties - 0.52


Total 38.14 46.70

Note17:OtherFinancialAssets-Current(ìnlakhs)


Interestaccruedonfixeddeposits 6,059.78 4,235.91

Interestaccruedonemployeeadvances

Relatedparties - 0.50


FixedDepositwithHDFCLtd 20,000.00 19,000.00

Total 26,083.13 23,269.18



Note18:OtherCurrentAssets(`inlakhs)


UnsecuredadvancesAdvancesotherthancapitaladvancesAdvancestorelatedparty 4.44 4.59Otheradvances 5,589.06 4,206.29Advancesconsidereddoubtful 0.07 0.07

5,593.57 4,210.95Less:Provisionfordoubtfuladvances 0.07 0.07

5,593.50 4,210.88OthersBalancewithSalesTaxdepartmentandCBEC 427.32 826.01Miscellaneousdeposits 9.94 7.36Prepaidexpenditure 1,720.56 533.49Miscellaneouscurrentassets(Includingclaimsreceivable) 8,965.00 1,479.31

Total 16,716.32 7,057.05



Note19:EquityShareCapital

ParticularsAs at 31.03.2018 As at 31.03.2017

Number ` in lakhs Number ` in lakhs

Authorised

Equitysharesof₹10/-each 250000000 25,000.00 250000000 25,000.00

Issued,SubscribedandFullypaidup

Equitysharesof₹10eachfullypaidup 135936000 13,593.60 113280000 11,328.00

Total 135936000 13,593.60 113280000 11,328.00

19.1Reconciliationofnumberofsharesandamountsoutstanding


Number ` in lakhs Number ` in lakhs

EquitySharesoutstandingatthebeginningoftheyear 113280000 11,328.00 113280000 11,328.00

Add:sharesissuedduringtheyear 22656000 2265.60 - -

EquitySharesoutstandingattheendoftheyear 135936000 13,593.60 113280000 11,328.00

Duringtheyear,Companyhasraisedcapitalof₹2265.60lakhsthroughInitialPublicOffer(IPO)byissuing22656000equitysharesof₹10each.

Terms&RightsattachedtoEquityshares:TheCompanyhasonlyoneclassofequityshareshavingafacevalueof₹10persharewhichisfullypaidup.Equityshareholdersareeligibleforonevotepershareheld,andareentitledtodividendsasandwhendeclaredbytheCompany.InterimdividendispaidasandwhendeclaredbytheBoard.Finaldividendproposed/declaredbytheBoardofDirectorsissubjecttoapproval/regularisationbytheshareholdersintheAnnualGeneralmeeting.All dividends are paid in Indian Rupees. In the event of liquidation, the equity shareholders are eligible to receive theremainingassetsofthecompanyafterdistributionofallpreferentialamounts,inproportiontotheirshareholding.

19.2Detailsofshareholdersholdingmorethan5%sharesinthecompany


Number of Shares held % of holding Number of

Shares held % of holding

ThePresidentofIndia 101952000 75 113280000 100

RelianceCapitalTrusteeCo.Ltd.-A/CRelianceTaxSaver(Elss)Fund 7104353 5.23 0 0



Note20:OtherEquity(`inlakhs)


Capital Reserves 263.56 263.56

CapitalRedemptionReserve 11,914.20 11,914.20

SecuritiesPremiumReserve 93,152.56 0.85

DebentureRedemptionReserve 1,235.94 947.61

General Reserve 6,322.75 6,322.75

RetainedEarnings 199,104.08 172,081.27

311,993.09 191,530.24

Capital Reserve:CapitalreserverepresentsrestorationchargesreceivedfromMsIndianOilCorporationLtdforlayingpipelinethroughtheCompany’sland.

Capital Redemption Reserve:CapitalRedemptionReserveof₹11914.20lakhsrepresentsthereservescreatedonredemptionofpreferenceshareswhichwillbeutilisedforthepurposedefinedundertheCompaniesAct2013.

Securities Premium Reserve:

Premiumontaxfreebondsisamortisedonstraightlinebasisovertheperiodofbonds.

TheCompanyhascompletedanInitialPublicOffer(‘IPO’)of33984000equitysharesoffacevalueof₹10each.Thiscomprisesofanofferforsaleof11328000equityshares(10%ofitsequityshareholding)undertheDisinvestmentprogramme ofGovt. of India, the President of India acting through theMinistry of Shipping and a fresh issue of22656000equitysharesandshareswereallottedon09Aug2017.TheequityshareswerelistedinBombayStockExchangeandNationalStockExchangeon11.08.2017.

ThecompanyhascompletedtheInitialPublicOffer(IPO)andhasallotted22656000equitysharesof₹10eachatpremium(₹93929.76lakhs).

ExpensesincurrednetofdefferedtaxadjustmenttowardssuchallotmentofsharesamountingRs777.93lakhshasbeendebitedinsecuritiespremiumreserveInaccordancewiththerequirementsofIndianAccountingStandard(IndAS)32-FinancialInstruments.

Debenture Redemption Reserve:InaccordancewithprovisionsofSection71(4)oftheCompaniesAct,2013readwithRule18(7)ofCompanies(SharecapitalandDebentures)Rules,2014andasperSEBI(IssueandListingofDebtSecurities)Regulations,2008theCompanyhascreatedDebentureRedemptionReserve(DRR)amountingto₹1235.94lakhs(cumulative)at25%ofthevalueofdebentureissuedbytheCompany,overthematurityperiodofsuchdebentures,proportionatelyfortheperiodupto31.03.2018.



ReconciliationofOtherEquityasat31.03.2017

Particulars (` inlakhs)

OtherEquity(ReservesexcludingRevaluationReserve)asat31.03.2017asperauditedFinancialStatementsasat31.03.2017

191783.15

Adjustments during the year for prior period items:

DecreaseinretainedEarningsforincomes/expensesrelatingtoFY2016-17andperiodspriortoFY2016-17

(252.91)

OtherEquity(ReservesexcludingRevaluationReserve)asat31.03.2017nowrestated 191530.24

Taxexpenses(currenttaxanddeferredtax)includespreviousyeartaxadjustmentsalso.

Proposed dividend :TheBoardofDirectorsoftheCompanyhaverecommendedafinaldividendof₹12/-perequityshareoffacevalueof₹10/-forthefinancialyearendedMarch31,2018attheboardmeetingheldonMay24,2018.

Note21:Borrowings(` inlakhs)


(a) Bonds - from other parties (Secured)

TaxFreeRedeemableNonConvertibleBonds-Series2013-14 12,300.00 12,300.00

Total 12,300.00 12,300.00

Tax Free Infrastructure Bond Series 2013-14

a)Tranche 1:1000bondsoffacevalueof₹10lakhstotalling₹10000lakhswithinterestrateof8.51%payableannually,redeemableatpar,dueforredemptionon02ndDecember2023

b)Tranche 2:230bondsof facevalueof₹10 lakhstotalling₹2300 lakhswith interest rateof8.72%payableannually,redeemableatpar,dueforredemptionon28thMarch2029.

ThesebondsaresecuredagainstthelandedpropertiesoftheCompanyadmeasuring197.12ares(487.00cents)madeupof34.30aresinSyNo.713/11,23.57aresinSyNo.713/12,59.12aresinSyNo.713/13,50.18aresinSyNo.714/06,10.12aresinSyNo.714/2,8.90aresinSyNo.714/4and10.93aresinSyNo.714/5oflandallarelyingcontiguouslyinElamkulamvillage,Kanayannurtaluk,ErnakulamDist,Kerala.

Utilisation:Outoftheissueproceedsof₹12300lakhsreceived,theCompanyhasfullyutilised/adjustedfundstowardsvariousexpenditureincurredonInternationalShipRepairFacility(ISRF)project.

Differencebetweencarryingamountsandfairvaluesoffinancialliabilitiesofborrowingsisnotsignificantineachoftheyearpresented.



Note22:OtherFinancialliabilities-NonCurrent(ìnlakhs)


PayabletoChennaiPortTrust 261.22 261.22

Total 261.22 261.22

Liabilityof₹261.22 lakhs toChennaiPortTrust in respectofcustomsduty iscoveredbya refundappeal lyingbeforeCommissioner(Appeals)whichisalsoshownasdepositswithCustomsdepartmentunderNoteNo.10

Note23:Provisions-NonCurrent(ìnlakhs)


Provisionforemployeebenefits-Compensatedabsences(ReferNoteNo34) 2,265.70 2,141.60

Total 2,265.70 2,141.60

Note24:Othernoncurrentliabilities(ìnlakhs)


DeferredIncomearisingfromGovernmentAssistance 13.74 0.00

Total 13.74 0.00

Note25:TradePayables(ìnlakhs)


Tradepayables(Unsecured)

OutstandingduesofMicroenterprisesandSmallenterprises 682.19 584.95

OutstandingduesofcreditorsotherthanMicroenterprisesandSmallenterprises 26,700.78 15,503.11

Total 27,382.97 16,088.06

Insomecases,theCompanyhasreceivedintimationfromMicroandSmallEnterprisesregardingtheirstatusunder“TheMicro,SmallandMediumEnterprisesDevelopmentAct,2006”.Theaveragecreditperiodongoodsandservicesarewithin30to60days.TheamountremainingunpaidtoMicroandSmallsuppliersasattheendofthefinancialyearis₹682.19lakhs.NointerestfordelaywaspaidorpayableundertheAct.



Note26:OtherFinancialLiabilities-Current(ìnlakhs)

Particulars Asat31.03.2018 Asat31.03.2017

Interestaccruedbutnotdue 281.98 281.98

OthersSecurityandotherdeposits 733.34 1,087.87

OthersPayables 10,721.16 8,237.94

Total 11,736.48 9,607.79

Note27:OtherCurrentLiabilities(ìnlakhs)


AdvanceforIndigenousAircraftCarrier(Costplus) 691,656.37 555,275.22Less:IndigenousAircraftcarrierinventoryinstock 71,053.76 57,107.65Less:Materialissued 429,719.34 352,045.46Less:Designandotherdirectexpenses 30,758.47 30,474.65Less:Advancepaidforpurchaseofmaterialsandservices 30,555.83 34,719.45Less:Otherexpensesagainstcostplusactivities 68,684.02 57,466.57

60,884.95 23,461.44 AdvanceforIndigenousAircraftCarrierfixedpricecontract 309,179.83 267,883.84Less:incomerecognisedsofar 323,993.64 268,724.46

(14,813.81) (840.62)AdvanceforIndigenousAircraftCarrierinfrastructure 28,517.05 26,347.16Less:Assetsoninfrastructure 26,934.76 24,879.24Less:Prepayment 14.00 6.44

1,568.29 1,461.48 AdvanceoutstandingforIndigenousAircraftCarrierworks(Net) 47,639.43 24,082.30Advancesforothershipbuildingcontracts 88,515.06 41,967.69Advancesforshiprepairandothers 1,099.15 529.63Incomereceivedinadvance 23.28 22.22 Statutorydues 699.50 702.04DeferredIncomearisingfromGovernmentAssistance 1.14 0.00Total 137,977.56 67,303.88

CostofinfrastructurefacilitieswhichhasbeenmetoutoffundsfromNavyandadjustedbyIndianNavy,tilldate.(ìnlakhs)

Details Asat31.03.2018 Asat31.03.2017Buildingsandothercivilworks 8,600.39 6,572.58

Dataprocessingequipment 1,294.44 1,294.44

FurnitureandOfficeequipments 249.17 221.46

Plantandmachinery 16,790.76 16,790.76Total 26,934.76 24,879.24



Note28:Provisions-Current(ìnlakhs)


Provision for Employee benefits

Gratuity 2,361.82 261.96

Compensatedabsences 383.78 332.80

Others 1,220.93 21.31

3,966.53 616.07

Other Provisions

Taxesandduties 196.48 233.03

Provisionforshipbuildingloss 548.22 35.00

Expenditure/contingencies 23,621.68 20,208.25

24,366.38 20,476.28

Total 28,332.91 21,092.35

28.1 :Detailsofmovementofprovisions

(ìnlakhs)


Provisionmadeduringtheperiod

Amountsusedduringtheperiod

Unusedamountsreversedduringtheperiod

As at 31.03.2018

a)Provisionfortaxesandduties 233.03 26.15 0.00 (62.70) 196.48

b)Provisionforshipbuildingloss 35.00 548.22 (35.00) 0.00 548.22

c)Provisionforexpenditure/contingencies 20,208.25 17,338.89 (12,155.46) (1,770.00) 23,621.68

d)Provisionforemployeebenefits-Others 21.31 1,220.93 (21.31) 0.00 1,220.93

(ìnlakhs)


Provisionmadeduringtheperiod

Amountsusedduringtheperiod

Unusedamountsreversedduringtheperiod

As at 31.03.2017

a)Provisionfortaxesandduties 380.45 55.29 (22.85) (179.86) 233.03

b)Provisionforshipbuildingloss 810.00 35.00 0.00 (810.00) 35.00

c)Provisionforexpenditure/contingencies 20,321.36 17,685.34 (16,037.58) (1,760.87) 20,208.25

d)Provisionforemployeebenefits-Others 16.00 21.31 (16.00) 0.00 21.31



Note29:Revenuefromoperations(`inlakhs)

Particulars Fortheyearended March31,2018

Fortheyearended March31,017

Sale of productsShipbuilding:IndigenousAircraftCarrier(IAC) 144,334.95 131,504.38VesselsotherthanIAC 28,428.83 19,862.93Engineeringworks 4.26 -

172,768.04 151,367.31 Sale of servicesShip repairs 62,326.64 54,304.93

62,326.64 54,304.93 Other operating revenueSaleofstockitems 0.05 214.86ScripunderMEISscheme 417.60 -

417.65 214.86 Total 235,512.33 205,887.10

Disclosure as required by Ind AS 11 - Construction Contracts

(a)Shipbuildingincomeof₹172763.78lakhs(previousyear₹151367.31lakhs)includesrevenuerecognizedunderpercentageofcompletionmethodamountingto₹172729.20lakhs(previousyear₹136171.34lakhs)againstincompletevessels.

(b)Methodofrevenuerecognition-Percentageofcompletionmethod

(c)Methodusedtodeterminethestageofcompletion-Stageofcompletionismeasuredintheproportiontoexpensesincurredtilltheendoftheyeartotheestimatedtotalcostofcompletionoftheprojectorpercentageofphysicalcompletionwhicheverisless.

(d)Forcontractsinprogressasattheendoftheyear.

(`inlakhs)

2017-18 2016-17(i) Contractrevenuerecognizedintheperiod 172,729.20 136,171.34(ii) Contractcostincurredandrecognizedprofits(less

recognizedlosses)uptothereportingperiod 885,255.31 713,252.32

(iii) Advancereceivedfromcustomers 926,392.08 741,469.06

(iv) Grossamountduetocustomers 66,535.58 29,057.36(v) Grossamountduefromcustomers 25,398.81 840.62

Ship repair income includes incomerecognisedunderproportionatecompletionmethodamountingto₹21092.00 lakhs(previousyear₹4153.00lakhs)

Income from ship repair is net of actual / anticipated reductions amounting to ₹ 1922.81 lakhs (previous year ₹3903.13lakhs).



Note30:OtherIncome(ìnlakhs)

Particulars FortheyearendedMarch31,2018


Trainingfacilities 241.12 315.18Incomefromsaleofscrapandstores 457.51 173.45Profitonsaleoffixedassets 1.34 6.56Incomefromlaboratoryservices 33.52 37.90Rentreceived 187.01 130.83Hirechargesreceived 0.00 29.08Interestonbankdeposits 15,087.57 12,439.68Interestfromothers 333.90 645.85Dividendincomefromequityinvestments/MutualFunds 185.84 199.02ProfitonsaleofMutualFunds 669.82 460.96Netgain/(loss)onforeigncurrencytransactions 217.73 227.22Provisionnolongerrequired 1,103.03 949.63Miscellaneousincome 397.44 247.90Total 18,915.83 15,863.26

Miscellaneous income includes ₹ 1.14 lakhs being deferred government assistance in the form of subsidy relatingto installation of Solar Power plant inside the yard. The same has been accounted as per the requirements of IndAS20-AccountingforGovernmentGrantsandDisclosureofGovernmentAssistance.Incomefromsaleofscrapandstoresisnetofimportdutyamountingto₹45.33lakhs(previousyear₹234.49lakhs)onsaleofbondedscrapandstores.

Note31:CostofMaterialsConsumed(ìnlakhs)


FortheyearendedMarch31,2017

Raw Materials

Steel 4,235.44 2,286.54

Pipe 1,096.48 724.25

Paint 1,278.40 1,439.45

Boughtoutcomponents 109,955.32 96,422.43

Total 116,565.64 100,872.67

Note32:ChangesinInventoriesofWork-in-Progress(ìnlakhs)

(Otherthanthosewhicharerecognisedasincomeonpercentage/proportionatecompletionmethod)



Work-in-progress:Atthebeginningoftheyear 8,794.85 7,399.33Less:attheendoftheyear 6,284.46 8,794.85Decretion/(Accretion)towork-in-progress 2,510.39 (1,395.52)



Note33:SubContractandOtherDirectExpenses(`inlakhs)



Subcontractandoffloadedjobs 17,950.24 16,592.52Hullinsurance 51.04 76.12Otherdirectexpenses 5,527.71 15,268.09Total 23,528.99 31,936.73

Note34:EmployeeBenefitsExpense

(₹inlakhs)



Salaries,wages,bonus/exgratiaandallowances 22,531.89 19,229.42ContributiontoProvidentFundandFamilyPensionFund 1,226.65 1,164.13Gratuity 2,188.68 110.20Staffwelfareexpenses 1,192.63 1,222.89Total 27,139.85 21,726.64

ContributiontoProvidentFundandFamilyPensionFundincludesprovidentfundinspectionandadministrationcharges₹15.16lakhs(previousyear₹14.67lakhs)

Salaries,Wages,bonus/exgratiaandallowancesincludesprovisionforencashmentofhalfpaycompensatedabsencesforworkmenamountingto₹175.08lakhs(previousyear₹19.18lakhs)

Theemployeebenefitsaccruing to theemployeesondeputationfromCochinPortTrustarebeingaccountedbasedondemandsreceivedfromCochinPortTrustaspertripartiteagreementbetweentheCompany,CochinPortTrustandtherecognisedTradeunionsofthePortandnotbasedonactuarialvaluationexceptforgratuitywhichisactuariallyvaluedfor2017-18.

Therevisioninpayandallowancesofofficersandnon-unionisedsupervisorswasduew.e.f01.01.2017andforworkmenw.e.f01.04.2017.Whilemostoftheduesinrespectoftheexecutiveshavecrystallisedandthesameforworkmenisunderfinalisation.Anamountof₹1200.96lakhshasbeencarriedasaliabilityasonMarch31,2018towardspendingdueonthisaccount.

Employeebenefitexpenses includes₹11.95Lakhs (previousyearNil)beingsecondmenttosubsidiary (HooghlyCochinShipyardLtd)

OtherBenefitPlan-Compensatedabsences

The principal assumptions used for the purpose of actuarial valuation were as follows:


DiscountRate(p.a) 7.72% 7.40%Rate of increase in compensation levels 3.00% 3.00%



AmountrecognisedintheStatementofProfitandLossinrespectofdefinedbenefitplansareasfollows:- (`inlakhs)



ServiceCost:Current Service Cost 172.90 173.48NetInterestexpense 151.84 176.63Acturial(Gain)/Lossrecognisedduringtheperiod 695.38 266.30Expensesrecognisedinthestatementofprofitandloss 1020.12 616.41The amount included in the Balance Sheet arising from the entity’s obligation in respect of its defined benefit planisasfollows:-

(₹inlakhs)



PresentValueofDefinedBenefitObligationatendoftheyear 2,649.48 2,474.40FairValueofPlanAssetsattheendoftheyear -NetLiabilities/(Assets)recognizedintheBalanceSheet 2,649.48 2,474.40

Movementsinpresentvalueofthedefinedbenefitobligationareasfollows:-(₹inlakhs)



DefinedBenefitObligationatbeginningoftheyear 2,474.40 2,557.66Current&PastServiceCost 172.90 173.48CurrentInterestCost 151.84 176.63Actuarial(Gain)/Loss 695.38 266.30Benefitspaid (845.04) (699.67)DefinedBenefitObligationatendoftheyear 2,649.48 2,474.40

Movementsinthefairvalueoftheplanassetsareasfollows:

(₹inlakhs)



FairValueofPlanAssetsatthebeginningoftheyear - -

ExpectedReturnonPlanAssets - -

Actuarial(Gain)/Loss - -

Contributionsfromtheemployer 845.04 699.67

Benefitspaid (845.04) (699.67)

FairValueoftheAssetsattheendoftheyear - -



DefinedBenefitPlan-Gratuity

Theprincipalassumptionsusedforthepurposeofactuarialvaluationwereasfollows:



DiscountRate(p.a) 7.72% 7.40%Rate of increase in compensation levels 3.00% 3.00%ExpectedRateofReturnonPlanAsset 7.72% 7.40%

AmountrecognisedintheStatementofProfitandLoss/Othercomprehensiveincomeinrespectofdefinedbenefitplansareasfollows:-

(₹inlakhs)



ServiceCost:

Current Service Cost 111.41 87.79

PastServiceCost 1567.90 0.00

NetInterestexpense 8.71 11.16

Components of defined benefit costs recognised in statement of profit and loss 1688.02 98.95

Remeasurementofthenetdefinedbenefitliability:

Actuarial(Gain)/LossonPlanObligations 220.67 181.36

DifferencebetweenActualReturnandInterestincomeonPlanassets(gain)/loss (15.63) (18.35)

Components of defined benefit costs recognised in Other Comprehensive Income 205.04 163.01

TheamountincludedintheBalanceSheetarisingfromtheentity’sobligationinrespectofitsdefinedbenefitplanisasfollows:-

(₹inlakhs)



PresentValueofDefinedBenefitObligationatendoftheyear 5,077.72 3,713.66

Less:FairValueofPlanAssetsattheendoftheyear 3,211.31 3,451.70

NetLiabilities/(Assets)recognizedintheBalanceSheet 1,866.41 261.96



Movementsinpresentvalueofthedefinedbenefitobligationareasfollows:-(₹inlakhs)



DefinedBenefitObligationatbeginningoftheyear 3,713.66 4,484.55

Current Service Cost 111.41 87.79

CurrentInterestCost 245.88 304.96

PastServiceCost 1,567.91 -

Actuarial(Gain)/Loss 220.67 181.36

Benefitspaid (781.81) (1,345.00)

DefinedBenefitObligationatendoftheyear 5,077.72 3,713.66

Movementsinthefairvalueoftheplanassetsareasfollows:(₹inlakhs)



FairValueofPlanAssetsatthebeginningoftheyear 3,451.70 4,205.49

ExpectedReturnonPlanAssets 237.18 293.80

Actuarial(Gain)/Loss 15.63 18.35

Contributionsfromtheemployer 288.61 279.06

Benefitspaid (781.81) (1,345.00)

FairValueoftheAssetsattheendoftheyear 3,211.31 3,451.70

TheplanassetsaremanagedbytheGratuityTrustformedbytheCompany.

Note35:FinanceCosts(₹inlakhs)



Bankinterest 36.42 2.10

Interestothers 53.17 0.04

Interestontaxfreebonds 1,051.44 1,051.44

Total 1,141.03 1,053.58



Note36:DepreciationandAmortisationExpense(₹inlakhs)



Depreciationonproperty,plantandequipments 3,049.86 2,818.46Amortisationofotherintangibleasset 447.73 765.77Total 3,497.59 3,584.23Add:Lossonrevaluationoftools 253.43 266.76Total 3,751.02 3,850.99

Note37:OtherExpenses(₹inlakhs)

Particulars For the year ended March 31,2018 For the year ended March 31,2017Consumption of stores 1,446.32 1,659.13Consumption of spares 62.32 154.89Ratesandtaxes 36.01 212.90Power 1,863.16 1,856.23Fuel 651.62 774.07Water 173.36 218.95Repairsandmaintenance:Buildingandroads 553.73 517.27Plantandmachinery 80.91 105.63Others 1,119.77 1,037.85

Maintenancedredging 784.35 733.78Transportandstoreshandling 124.96 223.19Travellingandconveyanceexpenses 598.24 456.12Printingandstationery 64.05 73.98Postage,telephoneandtelex 44.34 60.10Advertisementandpublicity 525.65 316.03Leaserent 567.21 632.11GuaranteedAmountunderleaseagreement 2.25 -Hirecharges 506.02 574.58Insurancecharges 230.64 333.86Securityexpenses 1,342.98 1,310.93Auditorsremuneration 12.50 8.66Auditorsremunerationforotherservices 8.75 4.02Trainingexpenses 521.48 458.79Legalexpenses 16.68 12.42Consultancy 96.87 33.08Bankcharges 46.38 162.27Netloss/(gain)onderivativecontracts - (148.63)Corporatesocialresponsibility(ReferNoteno.45) 857.08 723.56Lossonsale/writeoffofproperty,plantandequipments 15.48 414.85Miscellaneousexpenses 1,125.95 531.25Total 13,479.06 13,451.87



Auditorsremuneration,AuditorsremunerationforotherservicesandMiscellaneousexpensesinclude:(₹inlakhs)



ForAuditFees 12.50 8.66

ForLimitedReview/otherservices 8.75 4.02

ForcertificationforInitialPublicOffer 12.00 9.20

Total 33.25 21.88

Note38:ProvisionforAnticipatedLossesandExpenditure(₹inlakhs)



Provisionfor:

Doubtfuldebts/advances 3,804.88 246.10

Nonmoving/perpetualinventoryverification 31.62 56.86

Expensesandcontingencies 1,476.45 575.39

ProvisionforlossonShipBuilding 513.22 35.00

Total 5,826.17 913.35

MODUSagarBhushan,anoilrigownedbyM/sONGCwasunderrepairatCSLandtherewasafireincidentonboardthevesselonFeb13,2018whilethevesselwasundergoingrepairs.Theincidentresultedindamagestothevessel.Thecompanyhasassessedtheestimateddamagecosttobe₹1851lakhs.CompanyhasanannualinsurancecoverforthevesselunderShipRepairer’sliabilitypolicywithalimitofliabilityforanyoneincidentof₹1500lakhswithanannuallimitof₹30000lakhs.Thecompanyhasaccordinglymadeaprovisionforanamountof₹351lakhsnetofinsuranceclaim,towardsprobablelosson this

Note39:EarningsperEquityShare(₹inlakhs)



NetProfitaftertax(₹inlakhs) 39,675.01 32,154.70

WeightedaveragenumberofEquityShares 127866740 113280000

BasicandDilutedEarningsPerShare(EPS)(in₹) 31.03 28.39

Facevalueperequity(in₹) 10.00 10.00



Note40:CONTINGENTLIABILTIESANDCOMMITMENTS

ParticularsFor the period ended

31 Mar 2018(₹ in lakhs)

For the period ended31 Mar 2017

(₹ in lakhs)Brief Description of the nature and obligation

A

CONTINGENT LIABILITY (To the extent not provided for)

a Guarantees

i LettersofCredit 52,609.28 39,328.74RepresentsLetterofCreditopenedbytheCompanyinvariousbanksforprocurementofmaterials/assets

ii BankGuarantees 125,157.57 69,366.52

iiiCorporatePerformanceGuarantee to CochinPortTrust

3,925.00 3,925.00

PerformanceguaranteegivenbyCompanytoCoPTforperformanceofobligationsunderthecontractagreemententeredwithCoPTduringthecontractperiod.

bOther money for which the company is contingently liable

iGreater Cochin Development Authority (GCDA)

69.06 69.06

ClaimraisedbyGCDAforthelandacquiredfortheCompanyissettled.However8landacquisitionrevisionpetitioncases(ValuedatRs.69.06lakhs)filedbyevicteesispendingwiththeHon'bleSupremeCourtandHighCourt.

ii Customsduties 15,934.66 17,941.22

CustomsdutyformaterialsunderBondandIndigenousvesselsdelivered.IncludesanamountofRs69.83lakhs,beingCustomsdutyrefundgrantedbyCESTAT,Bangalore,againstwhichanappealispendingbeforetheHon'bleHighCourtofKerala.

iii SalesTax/KeralaValueAddedTax 1,259.75 1,259.75

2000-01-Rs.111.93Lakhs2001-02-Rs.73.44Lakhs2004-05-Rs195.67Lakhs2005-06-Rs.602.24Lakhs2007-08-Rs.276.47Lakhs(Underappeal.)Stayofcollectionoftaxobtainedinallcases.DemandreducedtotheextentofamountpaidandappealallowedbyDeputyCommissioner(Appeals).DetailednotesinNoteno.40.1(II&III)

12.10 12.10VATcreditfortheyear1996-97whichhasnotbeenconsideredinthedemand,forwhichnoprovisionexistsinthebooks

iv IncomeTax 6,077.85 6,077.85 DemandrelatingtoAssessmentYears:







(a)AY2009-10-Rs77.67LakhsAY2010-11-Rs.126.25LakhsAY2011-12-Rs.420.19LakhsAY2012-13-Rs.546.14LakhsAY2013-14-Rs.221.37LakhsAY2014-15-Rs.876.90Lakhs(b)AY1997-98-Rs2191.60LakhsAY1998-99-Rs967.27LakhsAY1999-00-Rs353.72LakhsAY2000-01-Rs170.31LakhsAY2001-02-Rs96.44Lakhs(c)AY2002-03-Rs29.99LakhsDetailednotesinNoteno.40.1(I)

v ServiceTax 1,647.47 1,647.47DemandofServiceTaxonIAC(DesignConsultancy)asperShowCauseNoticeissued.Adjudicationpending

376.68 376.68

RefundclaimofServiceTaxonIACgrantedbyCommissioner(Appeal).HoweverDepartmentfiledAppealbeforeCESTATagainsttheorderofCommissioner(Appeals).AlsoissuedShowCauseNoticeonCSL&adjudicationpending.

323.04 323.04DemandofServiceTaxonIAC(ManagementFee/HandlingCharges)asperShowCauseNoticeissued.Adjudicationpending

- 2,339.64

ShowCauseNoticeissuedforlevyofservicetaxonshiprepairwithoutallowingdeductionofmaterialsforwhichVATpaidanddisallowanceofCenvatCredit.Proceedingsundertheshowcausehasbeendroppedvideorderno.COC-EXCUS-000-COM-18-17-18dt19.03.2018

- 1,885.60

ShowCauseNoticeissuedforlevyofServiceTaxontherepairofvesselsownedbyUTLAbydenyingthebenefitofNotificationNo.25/212-STdt.20-6-2012availablefortherepairofvesselsownedbyGovt.Departments.Proceedingsundertheshowcausehasbeendroppedvideorderno.COC-EXCUS-000-COM-11-17-18dt07.03.2018

24.08 24.08Penaltyonservicetaxfortheperiod2003-04to2007-08whichispendingbeforeHon’bleHighCourtofKerala.







B COMMITMENTS (To the extent not provided for)

a

Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedfor:

73,430.43 4,584.66

b Othercommitments

i

Investmentinsubsidiary(HooghlyCochinShipyardLtd)forwhichthecompany has restriction fortheirdisposalfor5years from the effective dateoftheconcessionagreement.

1,628.00 0.00

ii

UnutilisedamountofInitialPublicOffer(IPO)proceeds(Pendingutilisation amount depositedwithvariousbanksincurrentaccountandtermdeposits)

82,621.86 0.00 DetailednotesinNoteno.41.b



40.1. CONTINGENCIES AND COMMITMENTS

(I) Income Tax Assessments

(a) TheIncomeTaxAssessmentofthecompanyhavebeencompleteduptoAY2014-15Demandsraisedaspertheassessmentorderstotalingto₹2268.52lakhsfortheAssessmentYears2009-10,2010-11,2011-12,2012-13,2013-14and2014-15are shownunderContingent Liabilitypendingdisposal of the appealsfiledbefore theCommissionerofIncomeTax(Appeals).Thedemandsaremainlyduetodisallowanceofcertaingenuineclaims.HowevertheabovedemandshavebeenadjustedagainsttherefundduetoCompany.

(b) FortheAssessmentyears1997-98to2001-02,theIncomeTaxdepartmenthasgoneforappealagainsttheorderoftheITATallowedinfavourofCSLbeforetheHon'bleHighCourtofKerala.FortheAssessmentyear1997-98theappealwasdecidedinfavourofCSLandfortheAssessmentyear1998-99theappealwasdecidedagainstCSL.Howeverforboththeassessmentyearsordersareyettobegiveneffecttobythereassessingofficer.

(c) TheCompanyhasfiledappealbeforetheITATagainsttheorderofAssessingOfficer/CommissionerofIncomeTax(Appeals)andtheappealwaspartlyallowedinfavorofCompany,theeffecttotheorderhasnotyetbeengivenbythereassessingofficer.

(II) Sales Tax Assessment under KGST Act

TheSalesTaxassessmentsunderKeralaGeneralSalesTaxActuptotheAssessmentYear2004-05havebeencompletedandorderswere issued for all theyearsexcept for theyear2002-03&2003-04.Due to apparentmistake in theordersissuedfortheyear2000-01and2001-02,applicationshavebeenfiledforrectificationoftheorders.Pendingrectificationto theassessmentorders thedemandstheretohavebeenshownunderContingentLiabilities.For theAssessmentyear2004-05,theDeputyCommissioner(Appeals)hasdismissedtheappealfiledbytheCompanyagainstthedemandfor₹202.22lakhs.TheCompanyisintheprocessoffilingappealtoTribunal.

(III) Sales Tax Assessments under KVAT Act

The KVAT assessments from Assessment Year 2005-06 to Assessment Year 2007-08 have been completed andassessment orderswere issued forAssessmentYear 2005-06 andAssessmentYear 2007-08with a demand of ₹2836.63lakhsand₹5554.71lakhsrespectively.TheappealsfiledbytheCompanyagainsttheaboveorders,beforetheDeputyCommissioner (Appeals)havebeenpartiallydecided infavouroftheCompanyandremandedforfreshassessments.Accordinglythedemandsaspertheoriginalassessmentordershavebecomenull.Assuchnodemandexists ason reportingdate.Pending receiptof the revisedassessmentorder, thecompanyfiledappealbefore theHon’bleKVATAppellateTribunalontheotherissues.TheappealiscurrentlypendingbeforetheTribunal.Assessmentorderfortheyear2006-07ispending.

41.a.TheEnvironmentalClearances,fortheISRFprojectreceivedfromMinistryofEnvironment,ForestandClimateChange(MOEFCC), is subject to obtaining prior clearance of the Standing Committee of the National Board forWildlife(“NBWL”).Pursuant to theSEBIExemption letterdatedJuly14,2017,SEBIhadpermitted theCompany toutilizethenetproceedsoftheInitialPublicOfferassignedtowardstheproposedISRFprojectandutilizesuchfundsraisedoncethenecessaryapprovalsforEnvironmentalClearancefortheISRFprojectarereceived.TheCompanyhadalsoundertakentoSEBIvideletterdatedJuly10,2017andfurtherstatedintheProspectusdatedAugust4,2017thatthenetproceedsassignedfortheproposedISRFprojectshallbetransferredtoaseparatebankaccountwhichwouldbeutilisedonlyafterrequisitependingapproval(s)arereceivedandallexpenditureontheISRFprojectshallbeincurredthroughinternalaccrualstillthetimesuchpendingapprovalsarereceived.

TheStateBoardforWildLifeattheirmeetingheldonAugust16,2017specifiedcompensatorymangroveafforestationbytheCompanyasaconditionwhilerecommendingtheproposaltotheNBWL.TheStandingCommitteeofNBWLintheir46thmeetingheldonDecember8,2017hasrecommendedtheEnvironmentalClearancefortheISRFproject



alongwithconditionsimposedbytheStateChiefWildLifeWarden(CWLW).TheconditionimposedbyStateCWLWistobecompliedduringtheimplementationoftheISRFprojectandthematterhasbeentakenupwiththeForestDepartment,GovernmentofKeralaand theprocessof identificationofnotifiedmangrovearea forafforestation isunderway.Accordingly, theCompanyhas considered thedateofEnvironmental clearance asJanuary9, 2018 andstartedutilisationofthefundssetapartforthispurposeafterintimatingSEBIvideletterdatedJanuary17,2018.

41.b. The Utilisation of IPO proceeds is summarised below:

(₹inlakhs)

ParticularsIPO proceeds

received -Based on Final allotment

Actual cash outflow upto

March 31, 2018

Unutilised amount as at

March 31, 2018SettingupofDryDock 51000.00* 330.72 50669.28

SettingupofISRF 26500.00* 1142.14 25357.86

General corporate purposes 16523.26 9956.42 6566.84

Issuerelatedexpenses(AttributtabletotheCompany) 2172.10** 2144.22 27.88

Total 96195.36 13573.50 82621.86

* As per Prospectus Filed

**IncreaseinIPOexpenditure(Rs.172.10lakhs)comparedtotheestimatesisadjustedagainstamountspecifiedforGeneralCorporatePurpose

42. ThedisputebetweenM/sApeejayShippingLtd(formerlyknownasSurendraOverseasLtd)andtheCompany,inthematterofship005wasreferredforarbitrationbytheHon'bleSupremeCourtofIndia.Thearbitrationaward(July2009)was in favourof theCompanyunderwhich theCompany is to receive₹2803.64 lakhs fromM/sApeejayShippingLtd.ThecompanyhasfiledapetitionbeforeSubCourt,Ernakulamforpassingadecree.M/sApeejayShippingLtdhasmovedtotheSubCourttoquashtheAwardoftheUmpireandtheCompanyhasfiledCounterAffidavitagainstthismove.Thematterispendingbeforethecourt.Nocredithasbeentakeninthebooksofaccount,pendingfinaldecreeoftheCourt.

43. PermanentMachinery forArbitration,DepartmentofPublic Enterprises,Govt. of India, hasnotified award infavour of the Company in the dispute between the Company andM/sOil andNatural Gas Corporation Ltd(ONGC)on theWorksContractTax issue andONGChaspaid to theCompany thedisputed sumalongwithinterestamountingto₹2642.22Lakhsaspertheaward.ONGChasgoneonappealbeforetheLawSecretary,MinistryofLaw&Justiceagainsttheaward.PendingdisposalofONGCappeal,noadjustmenthasbeenmadeinthe accounts.

44. Litigations :TheCompany is subject to legal proceedings and claims, in theordinary courseof business.TheCompany'sManagementdoesnot reasonablyexpect that these legal actions,whenultimatelyconcludedanddetermined,willhavematerialandadverseeffectontheCompany'sresultsofoperation.



Details of material litigations as on 31 March 2018

M/s.VigilMarineServicesin2004raisedclaimstowardsAgencyCommissionpayableforwinningordersforATCOTugs.Thearbitrationproceedingscommencedon10Oct2004.Examinationandcrossexaminationofwitnessescompletedandpostedthematterforargumentson01and02Feb2014.TheArbitratorcompletedtheproceedingsandpassedhisawarddirectingtheCompanytopaycommissiontoM/sVigilMarineServicesattherateof5%oftheATCOcontractvalueofUSDollar18.25Millionwithinterest@8%perannum.AggrievedonthisCSLfiledOriginalSuitNo187/2016beforeSubCourt,Ernakulamandobtainedaninterimorderstayingexecutionoftheaward.”

45.CorporateSocialResponsibility(CSR):Aspersection135oftheCompaniesAct2013,CSRcommitteehasbeenformedbytheCompany.TheareasofCSRactivityincludesHealthCare,Education,SocialEmpowerment,etc.,andthose specified in ScheduleVII of theCompaniesAct 2013.TheutilisationofCSR funds are done throughdirectspendingasper the recommendationsofCSRcommittee.Detailsofamount required tobespentand theamountutilisedaregivenbelow:

(a)GrossamountrequiredtobespentbytheCompanyduringtheperiodendedMarch31,2018 ₹853.75lakhs

(b)Amountspentduringtheyear ₹857.08lakhs ₹inLakhsParticulars In cash Yet to be paid in cash Total

(i)Construction/acquisitionofanyasset 611.03 - 611.03(ii)Onpurposesotherthan(i)above 246.05 - 246.05

46. Related Party disclosure as per Ind AS 24

Related PartyNature of Relationship

2017-18 2016-17Shri.MadhuSNairChairman&ManagingDirector KeyManagerialPersonnel KeyManagerialPersonnel

Shri.PaulRanjanDDirector(Finance)&ChiefFinancialOfficer KeyManagerialPersonnel KeyManagerialPersonnel

Shri. Sunny Thomas Director(Technical)(Upto30/11/2017) KeyManagerialPersonnel KeyManagerialPersonnel

Shri.SureshBabuNVDirector(Operations) KeyManagerialPersonnel KeyManagerialPersonnel

ShriBarunMitra(upto17/04/2017)OfficialPartTime(Nominee)Director,GovernmentofIndia KeyManagerialPersonnel KeyManagerialPersonnel

ShriPravirKrishna(from17/04/2017to04/10/2017)OfficialPartTime(Nominee)Director,GovernmentofIndia KeyManagerialPersonnel --

ShriSatinderPalSingh(from04/10/2017)OfficialPartTime(Nominee)Director,GovernmentofIndia KeyManagerialPersonnel --

ShriEliasGeorgeOfficialPartTime(Nominee)Director,GovernmentofKerala KeyManagerialPersonnel KeyManagerialPersonnel

Smt.RoopaShekharRaiNonOfficialPartTime(Independent)Director KeyManagerialPersonnel KeyManagerialPersonnel

ShriRadhakrishnaMenonNonOfficialPartTime(Independent)Director KeyManagerialPersonnel KeyManagerialPersonnel




2017-18 2016-17ShriKrishnaDasENonOfficialPartTime(Independent)Director KeyManagerialPersonnel KeyManagerialPersonnel

ShriJijiThomson(from15/07/2017)NonOfficialPartTime(Independent)Director KeyManagerialPersonnel --

ShriPradiptaBanerjee(from15/07/2017)NonOfficialPartTime(Independent)Director KeyManagerialPersonnel --

ShriNandaKumaranPuthezhath(from15/07/2017)NonOfficialPartTime(Independent)Director KeyManagerialPersonnel --

Smt V KalaCompany Secretary KeyManagerialPersonnel KeyManagerialPersonnel

M/sHooghlyCochinShipyardLtd. SubsidiaryCompanywith74%stakeholding -

Nature of transaction-Remuneration to Key Managerial Person₹inLakhs


Shorttermbenefit 142.20 148.34PostemploymentBenefit 17.11 23.12Total 159.31 171.46

Nature of transaction-Loans*₹inLakhs

Name of Related Party Opening Balance as on 1/4/2017

Loans/advances Taken during 2017-18

Repayment

Balance as on 31/03/18

Interest accrued as on 31/03/18

MADHUSNAIR 0.90 1.54 1.53 0.91 0.00PAULRANJAND 1.04 1.38 1.43 0.99 0.00SUNNYTHOMAS 0.96 0.82 0.96 0.82 0.00SURESHBABUNV 3.72 1.33 4.10 0.95 0.00KALAV 0.79 1.09 1.11 0.77 0.00

₹inLakhs

Name of Related Party Opening Balance as on 1/4/2016

Loans/advances Taken during 2016-17

Repayment


Interest accrued as on 31/03/17

MADHUSNAIR 2.27 1.14 2.51 0.90 0.00PAULRANJAND 0.13 1.28 0.37 1.04 0.00SUNNYTHOMAS 0.11 3.00 2.15 0.96 0.00SURESHBABUNV 3.45 1.14 0.87 3.72 0.50KALAV 0.11 1.03 0.35 0.79 0.00*LoanbalanceshavebeenconsideredfromtheyearofattainingKMPstatus.



Nature of transaction-Sitting Fee to Independent Directors₹inLakhs

Name of the meeting Roopa Shekhar Rai Krishna Das E Radhakrishna

Menon Jiji Thomson Nandakumaran Puthezhath

Pradipta Banerji

BoardMeeting 1.50 1.35 1.50 0.90 0.90 0.75

AuditCommittee 0.00 0.90 0.90 0.00 0.45 0.00Corporate Social Responsibility 0.90 0.00 0.90 0.00 0.00 0.00

NominationandRemuneration Committee 0.45 0.45 0.00 0.00 0.00 0.00

ContractandCapexCommittee 0.00 0.00 0.00 0.15 0.15 0.00

Total payment for 2017-18 2.85 2.70 3.30 1.05 1.50 0.75

Nature of transaction - Transaction with other related parties

AsCSLisaGovernmentcompanyunderthecontrolofMinistryofShipping(MoS),thecompanyhasavailedexemptionfromdetaileddisclosurespreparedunderIndAS24withrespecttorelatedpartytransactionswithGovernmentandGovernmentrelatedentities.

However,asrequiredunderIndAS24,followingaretheindividuvallysignificanttransactions:

TransactionswithGovernmentandGovernmentrelatedentitiesbytheparentcompany.

ParticularsAs at

31.03.2018` Lakhs

As at 31.03.2017

` Lakhs

Secondmenttosubsidiary-HooghlyCochinShipyardLtd. 11.95 0.00

AmountpayabletoGovernmentofIndia 235.40 0.00

Amountpaidasdividendduringtheyear 10161.21 8665.92InthecaseofsubsidiarycompanysharesissuedforconsiderationotherthancashtoM/sHDPEL 572.00 0.00

Inadditiontotheabove,around98%ofthecompaniesturnoverand100%(approx)oftradereceivablesandcustomeradvanceiswithrespecttoGovernmentandGovernmentrelatedentities.

Shares held by Nominee Directors in HCSL on behalf of CSL As at 31.03.2018No of shares

As at 31.03.2017No of shares

MADHUSNAIR(FirstDirector) 10 NilPAULRANJAND(FirstDirector) 10 NilSUNNYTHOMAS(FirstDirector) 10 NilSURESHBABUNV(FirstDirector) 10 NilKALAV(SubscribertoMemorandum) 10 NilKJRAMESH(SubscribertoMemorandum) 10 Nil



47. FINANCIAL INSTRUMENTS

The fairvalue hierarchy is based on inputs tovaluation techniques that are used tomeasure fairvalue that are eitherobservableorunobservableandconsistofthefollowingthreelevels:

LevelIinputsarequotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilitiesthattheentitycanaccessatthemeasurementdate.

LevelIIinputsareinputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly.

LevelIIIinputsareunobservableinputsfortheassetorliability.

Thefollowingtablesummarisesfinancialassetsandliabilitiesmeasuredatfairvalueonarecurringbasisandfinancialassetsthatarenotmeasuredatfairvalueonarecurringbasis(butfairvaluedisclosuresarerequired)

(`inLakhs)

Financial assets/ financial liabilitiesFair value as at Fair Value

hierarchyAs at 31.03.2018 As at 31.03.2017Financial Assets NonCurrent

(i)Investments 1,637.18 9.18 LevelIII(ii)TradeReceivables - - LevelII(iii)Loans 147.77 145.39 LevelII(iv)Others - - LevelII

Current(i)Investments 0.16 LevelI(ii)TradeReceivables 58,012.76 30,699.22 LevelII(iii)Cash&Cashequivalents 79,194.06 67,598.15 LevelII(iv)BankBalancesotherthan(iii) 269,840.19 131,530.99 LevelII(v)Loans 38.14 46.70 LevelII(vi)Others 26,083.13 23,269.18 LevelII

Total Financial Assets 434,953.39 253,298.81 FinancialLiabilitiesNonCurrent

(i)Borrowings 12,300.00 12,300.00 LevelI(ii)Otherfinancialliabilities 261.22 261.22 LevelII

LevelIICurrent

(i)TradePayables 27,382.97 16,088.06 LevelII(ii)Otherfinancialliabilities 11,736.48 9,607.79 LevelII

Total Financial Liabilities 51,680.67 38,257.07



Note:

1.Theinvestmentsinequityinstrumentsarenotheldfortrading.Instead,theyareheldformediumorlongtermstrategicpurpose.UpontheapplicationofIndAS109,theCompanyhaschosentodesignatetheseinvestmentsinequityinstrumentsasatFVTOCIasthedirectorsbelievethatthisprovidesamoremeaningfulpresentationofmediumorlongtermstrategicinvestments,thanreflectingchangesinfairvalueimmediatelyinprofitorloss.

Investments included in level 3 of fairvalue hierarchy have beenvalued using the cost approach to arrive at their fairvalue.Thecostofunquoted investmentsapproximate the fairvaluebecause there isawide rangeofpossible fairvaluemeasurementsandthecostrepresentsestimateoffairvaluewithinthatrange.

TherewerenotransfersbetweenLevel1and2intheperiod.

2.Loans,Borrowingsareatthemarketratesandthereforethecarryingvalueisthefairvalue.

3.Thecarryingamountoftradereceivables,tradeandotherpayablesandshorttermloansareconsideredtobethesameastheirfairvalueduetotheirshorttermnature.

Differencebetweencarryingamountsandfairvaluesofbankdeposits,otherfinancialassets,otherfinancialliabilitiesandborrowingssubsequentlymeasuredatamortisedcostisnotsignificantineachoftheyearspresented.

Financial Instruments by category(`inLakhs)

31st March 2018 31st March 2017

FVTPL/ at cost FVTOCI Amortised

Cost FVTPL FVTOCI Amortised Cost

Financial Assets

Investments(Non-current)

-Equityinstruments 1,628.00 9.18 9.18

Investments(Current)

-MutualFunds 0.16

Tradereceivables 58,012.76 30,699.22

Cash&Cashequivalents 349,034.25 199,129.14

OtherFinancialAssets 26,269.04 23,461.27

Total Financial Assets 1,628.16 9.18 433,316.05 0.00 9.18 253,289.63


Borrowings 12,300.00 12,300.00

Tradepayables 27,382.97 16,088.06

Capitalcreditors

Otherfinancialliabilties 11,997.70 9,869.01

Total Financial Liabilities 51,680.67 0.00 0.00 38,257.07



48. Financial Risk Management Policy

Financial Risk Management Objective and Policies:

TheCompany’s principal financial liabilities, other than derivatives, comprise of loans and borrowings, trade and otherpayablesandadvancesfromcustomers.ThemainpurposeofthesefinancialliabilitiesistofinancetheCompany’soperations,projectsunderimplementationandtoprovideguaranteestosupportitsoperations.TheCompany’sprincipalfinancialassetsincludeInvestment,loansandadvances,tradeandotherreceivablesandcashandbankbalancesthatderivedirectlyfromitsoperations.TheCompany isexposedtomarketrisk,creditriskand liquidityrisk.TheCompany’sseniormanagementoverseesthemanagementoftheserisks.AllderivativeactivitiesforriskmanagementpurposesarecarriedoutbyunderthesupervisionoftheForexRiskManagementCommitteebyassigningnecessaryresources.ItistheCompany’spolicythatnotradinginderivativesforspeculativepurposesmaybeundertaken.TheBoardofDirectorsreviewsandagreespoliciesformanagingeachoftheserisks,whicharesummarisedbelow.

Market Risk

Marketriskistheriskthatthefairvalueoffuturecashflowsoffinancialassetswillfluctuatebecauseofchangesinmarketprices.Marketriskcomprisesthreetypesofrisk:interestraterisk,currencyriskandotherpricerisk,suchasequitypriceriskandcommodityrisk.FinancialAssetsaffectedbymarketriskincludeloansandborrowings,depositsandderivativefinancialinstruments.

Interest Rate Risk

Interestrateriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarket interestrates.TheCompany’sexposuretotheriskofchanges inmarket interestratesrelatesprimarilytotheCompany’slong-termdebtobligationswithfloatinginterestrates.

Foreign Currency Risk

Foreigncurrencyriskistheriskthatthefairvalueorfuturecashflowsofanexposurewillfluctuatebecauseofchangesinforeignexchangerates.TheCompany’sexposuretotheriskofchangesinforeignexchangeratesrelatesprimarilytotheCompany’soperatingactivities(whenrevenueorexpenseisdenominatedinaforeigncurrency).

Foreigncurrencyriskofthecompanyismanagedthroughaproperlydocumentedriskmanagementpolicyapprovedbytheboard.

Commodity Price Risk

TheCompanyisaffectedbythepricevolatilityofcertaincommodities.Itsoperatingactivitiesrequirethepurchaseofsteel,majormachineries,equipmentsetc.Therefore,theCompanyplansitspurchasescloselytooptimisetheprice.

Credit Risk

Creditriskistheriskthatacounterpartywillnotmeetitsobligationsunderafinancialinstrumentorcustomercontract,leadingtoafinancialloss.TheCompanyisexposedtocreditriskfromitsoperatingactivities(primarilytradereceivablesandadvancestosuppliers)andfromitsfinancingactivities,includingdepositswithbanksandfinancialinstitutions,foreignexchangetransactionsandotherfinancialinstruments.



49. Lease arrangements & Guaranteed amount₹inLakhs


As at 31.03.2017

a)Premisestakenonoperatinglease:TheCompanyhasoperatingleasesforfacilityatInternationalShipRepairFacility(ISRF).TheseleasearrangementswithCochinPortTrust(CoPT)isfor30years,whichisnon-cancellableleases.Withrespecttonon-cancellableoperatinglease,thefutureminimumleasepaymentasatBalanceSheetdateisasunder:b)Guaranteedamount:TheamountwhichCSLhasundertakentopaytoCochinPortTrustduringthecontractperiodof30years.Withrespecttonon-cancellableoperatinglease,thefutureminimumleasepaymentandGuaranteeamountasatBalanceSheetdateisasunder:Foraperiodnotlaterthanoneyear 606.55 558.67

Foraperiodlaterthanoneyearandnotlaterthanfiveyears 3509.96 2349.89

Foraperiodlaterthanfiveyears 62538.03 16847.21

50. Segment Reporting

The Company has identified twomajor operating segments viz, Shipbuilding and Repair of ships/ offshore structures.Segmentwiseanalysishasbeenmadeontheabovebasisandamountsallocatedonareasonablebasis.

₹inLakhs


SegmentAssetsShipbuilding 231887.20 169699.79

Ship Repair 168349.50 125884.57

Others 146692.04 36068.78

Total 546928.74 331653.14

SegmentLiabilityShipbuilding 89620.66 40854.99

Ship Repair 23368.86 21547.62

Others 108352.53 66392.29

Total 221342.05 128794.90

External Sales

Shipbuilding 173185.70 151582.17

Ship Repair 62326.63 54304.93

Unallocated 3494.36 2777.73

Total 239006.69 208664.83



₹inLakhs


InterestIncome 15421.47 13085.53

UnallocatedTotal RevenueShipbuilding 173185.70 151582.17

Ship Repair 62326.63 54304.93

Unallocated 18915.83 15863.26

Total 254428.16 221750.36

Accretion(-)/DecretiontoWorkinprogressShipbuilding 1002.26 (3918.05)

Ship Repair (3512.65) 5313.57

Total (2510.39) 1395.52

SegmentResultShipbuilding 41471.88 23064.29

Ship Repair 13145.75 14577.80

Unallocated 5868.38 11697.96

Total 60486.01 49340.05

TheCompanyhastwomajorbusinesssegments–“ShipBuilding”and“ShipRepair”.RevenueunderShipbuildingincludesRs.144334.95lakhs(Previousyear:Rs.131504.38lakhs)fromoneCustomers(Previousyear:oneCustomer)havingmorethan10%revenueofthetotalrevenue.AndforShiprepair,revenueincludesRs.40014.22lakhs(Previousyear:Rs.38073.82lakhs)fromonecustomers(Previousyear:oneCustomer)havingmorethan10%revenueofthetotalrevenue.

51. Capital Management

Thecompany'sobjectivewhenmanagingcapitalaretosafeguardtheirabilitytocontinueasagoingconcernsothattheycancontinuetoprovidereturnsforshareholdersandmaintainanoptimalcapitalstructuretoreducethecostofcapital.

Forthepurposeofcapitalmanagement,capitalincludesissuedequitycapitalandallotherequityreservesattributabletotheequityholdersoftheparent.Thecompanyisnotsubjecttoanyexternallyimposedcapitalrequirements.

Tomaintainoradjustthecapitalstructure,thecompanymayadjustthedividendpaymenttoshareholders,returnoncapitaltoshareholdersorissuenewshares.Thecompanymonitorscapitalusingagearingratio,whichisnetdebtdividedbytotalequity.TheCompanyincludeswithinnetdebt,interestbearingloansandborrowings(includingbonds).



₹inLakhs


Longtermborrowings 12300.00 12300.00

NetDebt 12300.00 12300.00

EquityShareCapital 13593.60 11328.00

Otherequity 311993.09 191530.24

TotalEquity 325586.69 202858.24

GearingRatio 3.78% 6.06%

Nochangesweremadeintheobjectives,policiesorprocessesformanagingcapitalduringtheyearsendedMarch31,2018andMarch31,2017.

52a.Inthecaseofcontracts/sub-contracts,whereverfinalbillsarenotsubmittedbythecontractorsfortheworkdoneasatthecloseoftheyear,liabilityisestimatedandprovidedbasedontheworkdone.

52b.BalanceshownunderTradeReceivables,TradePayables,loans,depositsandclaimsaresubjecttoconfirmationandconsequentreconciliation,ifany

53.TheCompanyhasmadeadequateprovisiontowardsmaterialforeseeablelosseswhereverrequired,inrespectoflongtermcontracts.TheCompanydonothaveanylongtermderivativecontractsforwhichtherewereanymaterialforeseeablelosses.

54.Figuresinbracketsdenotenegativefigures.

55.Previousyearfigureshavebeenregroupedandclassifiedwherevernecessarytoconformtothecurrentyearpresentation.






To TheMembersOfCochin Shipyard Limited

Report on the Consolidated Ind AS Financial Statements

We have audited the accompanying consolidated IndAS financial statements of Cochin Shipyard Limited (‘theHolding Company’) and its subsidiary Hooghly CochinShipyard Limited (collectively referred to as the ‘Group’),whichcomprisetheConsolidatedBalanceSheetasatMarch31, 2018, the Consolidated Statement of Profit and Loss(includingOtherComprehensiveIncome),theConsolidatedStatementofCashFlowsandtheConsolidatedStatementofChangesinEquityfortheyearthenended,andasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas‘theconsolidatedIndASfinancialstatements’).

Management’s Responsibility for the Consolidated Ind AS Financial Statements

TheHoldingCompany’sBoardofDirectors is responsibleforthemattersstatedinSection134(5)oftheCompaniesAct, 2013 (‘the Act’) with respect to the preparation ofthese Consolidated IndAS financial statements that givea true and fair view of the consolidated state of affairs(financial position), consolidated profit or loss (financialperformance including other comprehensive income),consolidatedcashflowsandconsolidatedchangesinequityoftheGroupinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheIndianAccountingStandards(IndAS)prescribedunderSection133oftheAct.

The respective Board of Directors of the companiesincludedintheGroupareresponsibleforthemaintenanceof adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of theGroupand forpreventinganddetecting fraudsandotherirregularities; the selectionandapplicationof appropriateaccountingpolicies;making judgmentsandestimatesthatarereasonableandprudent;andthedesign,implementationand maintenance of adequate internal financial controlsthatwere operating effectively for ensuring the accuracyand completeness of the accounting records, relevant tothepreparationandpresentationoftheconsolidatedIndASfinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror,whichhavebeenusedforthepurposeofpreparationof the consolidated Ind AS financial statements by theDirectorsoftheHoldingCompany,asaforesaid.


Our responsibility is to express an opinion on theseconsolidatedIndASfinancialstatementsbasedonouraudit.Whileconductingtheaudit,wehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

WeconductedourauditoftheconsolidatedIndASfinancialstatements in accordancewith theStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhether the consolidated IndASfinancial statements arefree from material misstatement.

An audit involves performing procedures to obtain auditevidence about the amounts and the disclosures in theconsolidated IndAS financial statements.The proceduresselected dependon the auditor’s judgment, including theassessment of the risks of material misstatement of theconsolidated IndASfinancial statements,whether due tofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheHoldingCompany’spreparationoftheconsolidatedIndASfinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances.An audit also includes evaluating the appropriateness oftheaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheHoldingCompany’sBoardofDirectors,aswellasevaluatingtheoverallpresentationoftheconsolidatedIndASfinancialstatements.

Webelievethattheauditevidenceobtainedbyusandtheauditevidenceobtainedbytheotherauditors intermsoftheirreportsreferredtoinOtherMattersparagraphbelow,issufficientandappropriatetoprovideabasisforourauditopinionontheconsolidatedIndASfinancialstatements.

Opinion

In our opinion and to the best of our information andaccording to the explanations given to us, and based onthe considerationof the reports of the other auditors onseparate financial statements and on the other financialinformation of the subsidiary, the aforesaid consolidatedIndASfinancial statements give the information requiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndiaincludingtheIndAS,oftheconsolidatedstateofaffairs(financialposition)oftheGroupasatMarch

InDEPEnDEnT AuDITOR’S REPORT


31, 2018, its consolidated profit (financial performanceincluding other comprehensive income), its consolidatedcashflowsandtheconsolidatedchangesinequityfortheyearendedonthatdate.

Emphasis of Matter

Wedrawattentiontothefollowing:-

i) Note No.29 to the Consolidated Ind AS financialstatements regarding the basis onwhich the Grouphasrecognizedrevenuefromshipbuilding/shiprepairactivities based on the Group’s own assessment ofphysical completion and further, reliance is placedon the technical assessment and activity based costestimatesdefinedbytheManagementforthepurposeofrecognitionofincome;

ii) Note No.41.a to the Consolidated Ind AS financialstatementsregardingenvironmentalClearancefortheInternationalShipRepairFacility (‘ISRF’)project fromthe National Board for Wildlife (‘NBWL’) which hasrecommended environmental clearance for the ISRFproject along with the conditions imposed by StateChief Wild Life Warden (‘CWLW’) and subsequentutilizationoftheInitialPublicOfferproceedsrelatingtotheISRFprojectbasedonthemanagementcontentionthattheconditionsimposedbytheCWLWaretobecompliedwithduringtheimplementationoftheISRFproject.

Ouropinionisnotmodifiedinrespectofthesematters.

Other Matter

Wedidnotauditthefinancialstatementsofthesubsidiarycompany (Hooghly Cochin Shipyard Limited), whosefinancial statements (before eliminating inter Companybalances) reflect total assets of ₹ 2180.54 lakhs and netassets of ₹ 2162.93 lakhs as at March 31, 2018, totalrevenues(beforeeliminatinginterCompanytransactions)of₹18.57lakhsandnetcashinflowsamountingto₹1504.69lakhsfortheyearendedonthatdate,asconsideredintheconsolidated Ind AS financial statements. These financialstatements have been audited by another auditorwhosereporthasbeenfurnishedtousbythemanagementandouropinionontheconsolidatedIndASfinancialstatements,insofarasitrelatestotheamountsanddisclosuresincludedinrespectofthissubsidiary,andourreportintermsofsub-section(3)ofSection143oftheAct,insofarasitrelatestotheaforesaidsubsidiary,isbasedsolelyonthereportoftheotherauditor.

Our opinion above on the consolidated Ind AS financialstatements, and our report on other legal and regulatoryrequirements below, are not modified in respect of theabovematterwithrespecttoourrelianceontheworkdonebyandthereportoftheotherauditor.

Report on Other Legal and Regulatory Requirements

1. As requiredby Section143 (3) of theAct, basedonourauditandontheconsiderationofthereportoftheotherauditoronseparateFinancialStatementsandtheotherfinancialinformationofsubsidiary,incorporatedinIndia,referredintheOtherMatterparagraphabove,wereport,totheextentapplicable,that:

a. Wehavesoughtandobtainedalltheinformationand explanations which to the best of ourknowledge and belief were necessary forthe purposes of our audit of the aforesaidconsolidatedIndASFinancialStatements;

b. In our opinion, proper books of account asrequired by law relating to preparation ofthe aforesaid consolidated Ind AS FinancialStatements havebeen kept so far as it appearsfromourexaminationofthosebooksandreportoftheotherauditor;

c. TheConsolidatedBalanceSheet,theConsolidatedStatement of Profit and Loss (including OtherComprehensive Income), the ConsolidatedStatement of Cash Flows and the ConsolidatedStatementofChangesinEquitydealtwithbythisReportareinagreementwiththebooksofaccountmaintainedforthepurposeofpreparationoftheconsolidatedIndASFinancialStatements;

d. In our opinion, the aforesaid consolidated IndAS financial statements complywith the IndianAccounting Standards prescribed under Section133oftheAct;

e. Inviewofexemptiongivenvidenotificationno.G.S.R.463(E)datedJune52015,issuedbyMinistryofCorporateAffairs,provisionsofSection164(2)oftheActregardingdisqualificationofDirectors,arenotapplicable to theHoldingCompanyanditssubsidiary;

f. With respect to the adequacy of the internalfinancial controlsoverfinancial reportingof theGroup and the operating effectiveness of suchcontrols,refertoourseparatereportin“AnnexureA”.

g. Withrespecttotheothermatterstobeincludedin theAuditor’sReport in accordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014, in our opinion and to the best of ourinformation and according to the explanationsgiventous:

i. The Group has disclosed the impact ofpending litigations on its consolidated


financial position in its consolidated IndAS financial statements – Refer Notes 40,42, 43 and 44 to the consolidated IndASfinancialstatements;

ii. TheGrouphasmadeprovision,asrequiredunder the applicable law or accountingstandards, formaterial foreseeable losses,if any, on long-term contracts. Furtherthe Group did not have any long-termderivative contracts forwhich therewereany material foreseeable losses. – ReferNote 56 to the Consolidated Ind ASfinancialstatements;

iii. Therewerenoamounts,whichwererequiredtobetransferred,totheInvestorEducationandProtectionFundbytheGroup;and

iv. Thedisclosuresregardingdetailsofspecifiedbank notes held and transacted duringNovember8, 2016 toDecember30,2016has not been made since the requirementdoes not pertain to financial year endedMarch31,2018.



C.R RemaPartner


Cochin-16May24,2018


Annexure A to the Independent Auditor’s Report

(Referredtoinparagraph1(f)under‘ReportonOtherLegalandRegulatoryRequirements’ sectionof the IndependentAuditor’sReport to themembersof theCompanyon theConsolidatedIndAsfinancialstatementsfortheyearendedMarch31,2018.)

Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

We have audited the internal financial controls overfinancialreportingofCochinShipyardLimited(“theHoldingCompany”) and its Subsidiary Hoogly Cochin ShipyardLimited (“the Subsidiary”), which is incorporated in India,togetherreferredtoasthe“Group”asofMarch31,2018in conjunctionwith our audit of the consolidated IndASfinancial statements of the Group for the year ended onthatdate.

Management’s Responsibility for Internal Financial Controls

TherespectiveBoardofDirectorsoftheHoldingCompanyanditssubsidiarycompanywhich is incorporated in India,are responsible for establishing and maintaining internalfinancial controls based on the internal control overfinancial reporting criteria established by the respectivecompanyconsideringtheessentialcomponentsofinternalcontrol stated in theGuidanceNote onAudit of InternalFinancial Controls over Financial Reporting issued by theInstituteofCharteredAccountantsof India (‘ICAI’).Theseresponsibilities include the design, implementation andmaintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly andefficient conduct of its business, including adherence tothe respective company’s policies, the safeguarding of itsassets, thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheAct.


Ourresponsibility istoexpressanopinionontheGroup’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting(‘theGuidanceNote’)andtheStandardsonAuditing, issuedby ICAIanddeemed tobeprescribedundersection143(10)oftheAct,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbyICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformthe audit to obtain reasonable assurance about whether

adequateinternalfinancialcontrolsoverfinancialreportingwas established and maintained and if such controlsoperatedeffectivelyinallmaterialrespects.

Our audit involvesperformingprocedures toobtain auditevidence about the adequacy of the internal financialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditof internalfinancial controlsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingthe risk that amaterialweakness exists, and testing andevaluating the design and operating effectiveness ofinternalcontrolbasedontheassessedrisk.Theproceduresselected dependon the auditor’s judgment, including theassessmentoftherisksofmaterialmisstatementoftheIndASfinancialstatements,whetherduetofraudorerror.

Webelievethattheauditevidencewehaveobtainedandtheauditevidenceobtainedbytheotherauditor intermsof their report referred to in theOtherMatter paragraphbelow,issufficientandappropriatetoprovideabasisforourauditopinionon theHoldingCompanyand itsSubsidiaryCompanywhich is incorporated in India, internalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

Acompany’sinternalfinancialcontroloverfinancialreportingis a process designed to provide reasonable assuranceregarding the reliability of financial reporting and thepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.A company’s internal financial control over financialreporting includes those policies and procedures that (1)pertain to themaintenanceof records that, in reasonabledetail, accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded asnecessarytopermitpreparationoffinancialstatements inaccordancewithgenerallyacceptedaccountingprinciples,and that receipts and expenditures of the company arebeing made only in accordance with authorizations ofmanagementanddirectorsofthecompany;and(3)providereasonable assurance regarding prevention or timelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financialcontrolsoverfinancial reporting, including thepossibilityofcollusionorimpropermanagementoverrideofcontrols,material misstatements due to error or fraudmay occurand not be detected.Also, projections of any evaluation


of the internal financial controls over financial reportingtofutureperiodsaresubject totheriskthatthe internalfinancial control over financial reporting may becomeinadequatebecauseofchanges inconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion, theHoldingCompanyand itsSubsidiaryCompany which is incorporated in India, have, in allmaterialrespects,anadequateinternalfinancialcontrolssystem over financial reporting and such internalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch31,2018 ,basedonthe internalcontroloverfinancialreportingcriteriaestablishedbytherespectivecompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditof Internal Financial Controls Over Financial ReportingissuedbytheICAI.

Other Matter

Ouraforesaidreportsundersection143(3)(i)oftheActonthe adequacy and operating effectiveness of the internalfinancial controls over financial reporting in so far as itrelates to the subsidiarywhich is incorporated in India, isbasedon the corresponding report of the auditor of thatcompany.

Ouropinionisnotqualifiedinrespectofthismatter.



C.R RemaPartner

Membershipnumber:029182Cochin-16May24,2018


COnSOlIDATED BAlAnCE ShEETasatMarch31,2018

(₹inlakhs)

Particulars Note No. As at 31.03.2018

ASSETSNon-current assets

(a)Property,plantandequipment 3 28,446.72(b)Capitalwork-in-progress 4 12,074.20(c)Intangibleassets 5 6,451.75(d)Financialassets

(i)Investments 6 9.18(ii)Loans 7 147.77

(e)Incometaxassets(net) 8 5,400.03(f)Deferredtaxassets(net) 9 4,345.12(g)Othernon-currentassets 10 7,697.27

64,572.04 Current assets

(a)Inventories 11 31,455.67(b)FinancialAssets

(i)Investments 12 0.16(ii)Tradereceivables 13 58,012.76(iii)Cashandcashequivalents 14 80,698.75(iv)Bankbalancesotherthan(iii)above 15 269,840.19(v)Loans 16 38.14(vi)OtherFinancialassets 17 26,084.73

(c)Currenttaxassets(net) 8 1.86(d)Othercurrentassets 18 16,765.03

482,897.29 Total Assets 547,469.33 EQUITY AND LIABILITIESEquity :

(a)Equitysharecapital 19 13,593.60(b)Otherequity 20 311,953.71

Equity attributable to owners 325,547.31 (c)NonControllinginterests 562.36

Total Equity 326,109.67 Liabilities :Non-current liabilities

(a)Financialliabilities(i)Borrowings 21 12,300.00(ii)Otherfinancialliabilities 22 261.22

(b)Provisions 23 2,265.70(c)Othernoncurrentliabilities 24 13.74

14,840.66 Current liabilities

(a)Financialliabilities(i)Tradepayables 25 27,382.97(ii)Otherfinancialliabilities 26 11,737.44

(b)Othercurrentliabilities 27 137,977.57(c)Provisions 28 28,349.55(d)Currenttaxliabilities(net) 8 1,071.47

206,519.00 Total Equity and Liabilities 547,469.32

CorporateoverviewandSignificantAccountingPolicies 1-2NotestotheConsolidatedFinancialStatements 3-58TheaccompanyingnotesareanintegralpartofthesefinancialstatementsForandonbehalfofBoardofDirectorsV KALA SURESH BABU N V D PAUL RANJAN MADHU S NAIRCompanySecretary Director(Operations) Director(Finance)&ChiefFinancialOfficer ChairmanandManagingDirector DIN-07482491 DIN-06869452 DIN-07376798Kochi,datedMay24,2018Asperourreportattached




COnSOlIDATED STATEMEnT OF PROFIT AnD lOSSfortheyearendedMarch31,2018

(`inlakhs)

Particulars Note No. For the year ended March 31, 2018

I IncomeRevenue from operations 29 235512.33Otherincome 30 18922.45Total Income 254434.78

II Expenses:Costofmaterialsconsumed 31 116565.64Changesininventoriesofwork-in-progress 32 2510.39Subcontractandotherdirectexpenses 33 23528.99Employeebenefitsexpense 34 27139.85Finance costs 35 1141.03Depreciationandamortisationexpense 36 3751.02Otherexpenses 37 13547.55Provisionforanticipatedlossesandexpenditure 38 5826.17Total expenses 194010.64

III Profit before tax 60424.14 IV Tax expense:

(1)Currenttax 8 22412.00(2)Deferredtax 8 (1613.85)

V Profit for the year 39625.99 VI Other comprehensive income

A) Items that will not be reclassified to profit or lossi)Remeasurementsofdefinedemployeebenefitobligations (205.04)ii)Incometaxrelatingtoitemsthatwillnotbereclassifiedtoprofitorloss 70.96Other comprehensive income for the year (134.08)

VII Total Comprehensive income for the year 39491.91 Profit attributable to:

OwnersoftheCompany 39635.63 Non-controllinginterest (9.64)

Profit for the year 39625.99 Other comprehensive income attributable to:

OwnersoftheCompany (134.08)Non-controllinginterest 0.00

Other comprehensive income for the year (134.08)

Total Comprehensive Income attributable to:OwnersoftheCompany 39501.55 Non-controllinginterest (9.64)

Total Comprehensive Income for the year 39491.91 VIII Earnings per equity share of Rs 10 each : 39

(1)Basic(Rs) 31.00 (2)Diluted(Rs) 31.00

CorporateoverviewandSignificantAccountingPolicies 1-2NotestotheConsolidatedFinancialStatements 3-58TheaccompanyingnotesareanintegralpartofthesefinancialstatementsForandonbehalfofBoardofDirectorsV KALA SURESH BABU N V D PAUL RANJAN MADHU S NAIRCompanySecretary Director(Operations) Director(Finance)&ChiefFinancialOfficer ChairmanandManagingDirector DIN-07482491 DIN-06869452 DIN-07376798





COnSOlIDATED STATEMEnT OF CASh FlOwSfortheyearendedMarch31,2018

(`inlakhs)


A. Cash flow from operating activities

Profit before tax 60,424.14

Adjustmentsfor:

Depreciationandamortisation 3,497.59

Interestexpense 1,141.03

Interestincome (15,440.04)

Rental income (58.18)

Dividendincome (185.84)

Lossonsale/writeoffofpropertyplantandequipment 9.86

Profitonsaleofpropertyplantandequipment (1.34)

Profitonsaleofinvestments (669.82)

IncomerecognisedonGovt.assistance (1.14)

Loss/(gain)onderivativecontracts(net) 0.00

Unrealisedloss/(gain)onderivativecontracts(net) 0.00

Netgain/(loss)onforeigncurrencytransactions (217.73)

ExpensesonInitialPublicOffer 668.89

Effectiveloss/gainofcashflowhedges 0.00

Operatingcashflowbeforeworkingcapitalchanges 49,167.42

Movementsinworkingcapital:

(Increase)/decreaseininventories (12,808.58)

(Increase)/decreaseintradeandotherreceivables (181,661.85)

Increase/(decrease)intradeandotherpayables 85,613.83

(59,689.18)

Incometaxpaidnetofrefunds (15,610.00)

Net cash flows from operating activities (A) (75,299.18)

B. Cash flow from investing activities

Purchaseofproperty,plantandequipment (1,364.27)

(Increase)/decreaseincapitalworkInprogress (6,109.87)

InvestmentinMutualFunds (203,750.00)

RedemptionofMutualFunds 203,749.84

Dividendreceived 185.84

Profitonsaleofinvestments 669.82

Govt.assitancereceived 16.03

Saleorwithdrawalofproperty,plantandequipment 20.91

Interestreceived 13,624.49

Rentreceived 59.50



Net cash flows from investing activities (B) 7,102.29

C. Cash flow from financing activities

ProceedsfromIPOincludingsecuritiespremium 96,195.36

Loss/(gain)onderivativecontracts(Net) 0.00

Netgain/(loss)onforeigncurrencytransactions 217.73

Dividendpaid (10,161.21)

Dividenddistributiontaxpaid (2,068.58)

Interestpaid (1,141.15)

ExpensesonInitialPublicOffer (1,744.66)

Net cash flows from financing activities (C) 81,297.49

D. Net Increase in Cash & Cash Equivalents (A)+(B)+(C) 13,100.60

Cash and cash equivalent at the beginning of the Year

Cashonhand 0.00

BalancewithBanksincurrentaccountanddepositaccount 67,598.15Cashandcashequivalents(asperNote16) 67,598.15

Cash and cash equivalent at the end of the Year

Cashonhand 0.12

BalancewithBanksincurrentaccountanddepositaccount 80,698.63Cashandcashequivalents(asperNote14) 80,698.75

Note:Figuresinbracketsindicateoutflow.CorporateoverviewandSignificantAccountingPolicies 1-2NotestotheConsolidatedFinancialStatements 3-58ForandonbehalfofBoardofDirectorsV KALA SURESH BABU N V D PAUL RANJAN MADHU S NAIRCompanySecretary Director(Operations) Director(Finance)&ChiefFinancialOfficer ChairmanandManagingDirector DIN-07482491 DIN-06869452 DIN-07376798




(`inlakhs)


COnSOlIDATED STATEMEnT OF ChAngES In EquITyfortheyearendedMarch31,2018

A. Equity Share Capital

(`inlakhs)


11,328.00 2,265.60 13,593.60

B. Other Equity(`inlakhs)

Reserves and Surplus

Total other equityCapital

Reserve

Securities Premium Reserve

General Reserve

RetainedEarnings

Capital Redemp-tion Re-

serve

Debenture Redemption

Reserve

Total attrib-utable to the

Company

Attributable to NCI

Balance as at April 01,2017 263.56 0.85 6322.75 172081.27 11914.20 947.61 191530.24 0.00 191530.24

Profitfortheyear 39635.63 39635.63 (9.64) 39625.99

Othercomprehensiveincomeforthe year (134.08) (134.08) (134.08)

Total comprehensive income for the year 39501.55 39501.55 (9.64) 39491.91

Dividends(includingtaxes) (12229.79) (12229.79) (12229.79)

Transferfromretainedearnings (288.33) 288.33 0.00 0.00

PremiumonIPOnetofDeferredTax 93151.83 93151.83 93151.83

Amortisation of premium (0.12) (0.12) (0.12)

Balance as at March 31,2018 263.56 93152.56 6322.75 199064.70 11914.20 1235.94 311953.71 (9.64) 311944.07

EquityinfusedbyNCI 572.00

TOTAL 562.36








1. CORPORATE OVERVIEW AND SIGNIFICANT ACCOUNTING POLICIES

1.1. Corporate information

CochinShipyardLimited(referredtoas“CSL”or“theCompany”) ismainly engaged in the construction ofvessels and repairs and refits of all types of vesselsincludingupgradationofshipsperiodicallayuprepairsandlifeextensionofships.

TheCompanyisapubliclimitedcompanyincorporatedand domiciled in India. The address of its corporateoffice is Perumanoor,Kochi,Kerala.As atMarch31,2018, the Government of India holds 75% of theCompany’sequitysharecapital.TheCompany’sequitysharesare listedfortradingonNSELimitedandBSELimited in India and tax free bonds are listed fortradingonBSE.

TheconsolidatedFinancialStatementsrelatetoCochinShipyardLimited(ParentCompany)anditsSubsidiaryCompany, Hooghly Cochin Shipyard Limited. ThesubsidiarycompanywasincorporatedonOctober23,2017 and is proposed to be mainly engaged in thebusiness of construction and repair of vessels of alltypes.

TheCompanyanditsSubsidiaryaretogetherreferredtoas“Group”.

The consolidated financial statements for the yearendedMarch31,2018wereapprovedby theBoardofDirectorsandauthorisedforissueonMay24,2018.

2. Significant Accounting Policies

2.1 Statement of compliance

These consolidated financial statements have beenprepared in accordance with the Indian AccountingStandards(referredtoas“IndAS”)asprescribedunderSection 133 of the CompaniesAct, 2013 readwithCompanies(IndianAccountingStandards)Rules,2015asamendedfromtimetotime.

2.2 Basis of preparation of Consolidated Financial Statements

These consolidated financial statements have beenpreparedonthehistoricalcostbasis,exceptforcertainfinancialinstrumentswhicharemeasuredatfairvalues

attheendofeachreportingperiod,asexplainedintheaccountingpoliciesbelow.Historicalcostisgenerallybased on the fair value of the consideration giveninexchange forgoodsand services.Fairvalue is theprice thatwouldbe received to sell anassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.

2.2.1 Basis of consolidation of Consolidated Financial Statements

Subsidiariesareentities(includingstructuredentities)overwhichtheGrouphascontrol.TheGroupcontrolsanentitywhentheGroupisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspower to direct the relevant activities of the entity.Subsidiaries are fully consolidated commencing fromthedateonwhichcontrolistransferredtotheGroupuntilthedateonwhichcontrolceases.

TheGroupconsolidatethefinancialstatementsoftheparentanditssubsidiariesonlinebylinebasisaddingtogetherlikeitemsofassets,liabilities,equity,incomeand expenses. Intercompany transactions,balancesand unrealised gains on transactions between groupcompanies are eliminated.Unrealised losses are alsoeliminated unless the transaction provides evidenceofanimpairmentofthetransferredasset.Accountingpolicies of subsidiaries have been changed wherenecessary to ensure consistency with the policiesadoptedbytheGroup.

Non-controllinginterests, intheresultsandequityofsubsidiariesareshownseparatelyintheConsolidatedStatementofProfitandLoss,ConsolidatedStatementofChangesinEquityandConsolidatedBalanceSheetrespectively. Subsidiary company was incorporatedinOctober2017andthisisthefirstyearpreparationof Consolidated Financial Statements. Consequently,previousyearfiguresarenotdisclosed.

2.3 Use of estimates and judgements

The preparation of the consolidated financialstatements in conformity with the Ind AS requiresmanagement to make judgements, estimates andassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilitiesanddisclosuresasatdateofthefinancialstatements



and the reported amounts of the revenues andexpenses for the years presented. The estimatesand associated assumptions are based on historicalexperienceandotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimatesunderdifferentassumptionsandconditions.

The estimates and underlying assumptions arereviewedonanongoingbasis.Revisionstoaccountingestimates are recognized in the period inwhich theestimate is revised if the revision affects only thatperiod or in the period of the revision and futureperiodsiftherevisionaffectsbothcurrentandfutureperiods.

2.4 Critical Accounting estimates and judgements: Theapplicationofsignificantaccountingpoliciesthatrequirecriticalaccountingestimatesinvolvingcomplexandsubjectivejudgementsandtheuseofassumptionsin the consolidated financial statements have beendisclosedbelow:

Useful lives of property, plant and equipmentThe Group reviews the estimated useful lives andresidual values of property, plant and equipmentat the end of each reporting period. Assumptionsare also made as to whether an item meets thedescriptionofassetsoastowarrantitscapitalisationandwhichcomponentoftheassetmaybecapitalised.Reassessment of life may result in change indepreciationexpenseinfutureperiods.

Valuation of deferred tax assets / liabilitiesTheGroupreviewsthecarryingamountofdeferredtaxassets/liabilitiesattheendofeachreportingperiod.Significantjudgementsareinvolvedindeterminingtheelementsofdeferredtaxitems.

Impairment of unquoted investments The Group reviews its carrying value of investmentsannually, ormore frequentlywhen there is indicationforimpairment.Iftherecoverableamountislessthanitscarryingamount,theimpairmentlossisaccountedfor.

Recognition and measurement of provisions

The recognition and measurment of provisions arebased on the assessment of the probability of an

outflow of resources and on past experience andcircumstance known at the balance sheet date. Theactual outflow of resources at a future date maythereforevaryfromthefigureincludedinprovisions.

Provision towards Guarantee repairs

Aprovisionismadetowardsguaranteerepairs/claimsin respect of newly built ships/small crafts deliveredand repaired ships on the basis of the technicalestimationdoneby theGroup.Theguaranteeclaimsreceivedfromtheshipownersarereviewedeveryyeartillsettlementofthesame.Incaseofashortfallintheprovisionmadeearlier,additionalprovisionsaremade.

Contingencies and commitments

Acontingentliabilityisapossibleobligationthatarisesfrompast eventswhose existencewill be confirmedbytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontrolof the Group or a present obligation that is notrecognisedbecauseitisnotprobablethatanoutflowof resourceswill be required to settle the obligationoritcannotbemeasuredwithsufficientreliability.TheGroup does not recognise a contingent liability butdiscloses its existence in the consolidated financialstatements.

Recoverability of advances / receivables

TheGroupmakesprovisions forexpectedcredit lossbasedonanassessmentoftherecoverabilityoftradeand other receivables. The identification of doubtfuldebtsrequiresuseofjudgementandestimates.Wheretheexpectationisdifferentfromtheoriginalestimate,suchdifferencewill impact the carryingvalueof thetradeandotherreceivablesandexpensesonaccountofprovisionfordoubtfuldebtsintheperiodinwhichsuchestimatehasbeenchanged.Ateachbalancesheetdate,basedonhistoricaldefault ratesobservedoverexpectedlife,themanagementassessestheexpectedcreditlossonoutstandingreceivablesandadvances.

Fair value measurements

Management applies valuation techniques todetermine the fair value of financial instruments(whereactivemarketquotesarenotavailable)andnon-financialassets.Thisinvolvesdevelopingestimatesandassumptionsconsistentwithhowmarketparticipants



would price the instrument. Management bases itsassumptionsonobservabledataasfaraspossiblebutthis isnotalwaysavailable.Inthatcasemanagementuses the best information available. Estimated fairvaluesmayvaryfromtheactualpricesthatwouldbeachievedinanarm’slengthtransactionatthereportingdate.

Classification of Leases

TheGroupentersintoleasingarrangementsforvariousassets. The classification of the leasing arrangementas a finance lease or operating lease is based on anassessmentofseveralfactors,including,butnotlimitedto,transferofownershipofleasedassetatendofleaseterm,lessee’soptiontopurchaseandestimatedcertaintyofexerciseofsuchoption,proportionofleasetermtotheasset’seconomiclife,proportionofpresentvalueofminimum lease payments to fairvalue of leased assetandextentofspecialisednatureoftheleasedasset.

Provision for inventories

Management reviews the inventory ageing on aperiodic basis. This review involves comparison ofthe carrying value of the aged inventory itemswiththerespectivenetrealisablevalue.Thepurposeistoascertainwhetheraprovisionisrequiredtobemadeintheconsolidatedfinancialstatementsforanyobsoleteand slow-moving items and that adequate provisionfor obsolete and slow-moving inventories has beenmadeinthefinancialstatements.

Provision for Liquidated Damages

Claims for liquidateddamagesagainst theGrouparerecognized in the consolidated financial statementsbased on the management’s assessment of theprobable outcome with reference to the availableinformation supplemented by experience of similartransactions.

A provision in respect of liquidated damages isrecognised for the period of delay between the duedateofsupplyofgoodsasper thedeliveryscheduleandtheexpecteddateofdeliveryofthesaidgoods.

Revenue Recognition TheGroupusesthepercentageofcompletionmethodinaccountingfor itsfixedpricecontracts.Theuseof

the percentage of completion method requires theGroup to estimate the costs expended to date asa proportion to the total cost to be expended on aproject considering thephysicalprogressorfinancialprogresswhichever is lower. Provision for estimatedlossesifanyontheuncompletedpartofthecontractsareprovidedintheperiodinwhichsuchlossesbecomeprobablebasedontheexpectedcontractestimatesatthereportingdate.

Recognition and measurement of defined benefit obligations The obligation arising from defined benefit plan isdeterminedonthebasisofactuarialassumptions.Keyactuarial assumptions include discount rate, trendsin salary escalation and vested future benefits andlife expectancy.The discount rate is determinedwithreferencetomarketyieldsattheendofthereportingperiodontheGovernmentbonds.Theperiodtomaturityof the underlying bonds correspond to the probablematurityofthepostemploymentbenefitobligations.

2.5 Property , Plant and Equipment (PPE)TheGrouphad applied for theonetime transitionexemption of considering the carrying cost on thetransition date i.e. April 1, 2015 as the deemedcost under Ind AS. Hence regarded thereafter ashistorical cost.

Property,PlantandEquipmentsarestatedatcostlessaccumulated depreciation (other than free hold landwhicharestatedatcost)andimpairmentlosses,ifany.PPEareinitiallyrecognisedatcost.TheinitialcostofPPEcomprisesitspurchaseprice,andanycostsdirectlyattributabletobringingtheassettothe locationandconditionnecessaryfor it tobecapableofoperatinginthemannerintendedbymanagementincludingnonrefundabledutiesandtaxesnetofanytradediscountsandrebatesThecostofPPEalsoincludesinterestonborrowings (borrowing cost directly attributable toacquisition, construction or production of qualifyingassets)uptoinitialrecognition.

Subsequent costs are included in the asset’scarrying amount or recognised as a separate asset,as appropriate, onlywhen it is probable that futureeconomicbenefitsassociatedwith the itemwillflowto theGroup and the cost of the items arematerial



and can be measured reliably. The carrying amountofanycomponentaccounted forasa separateassetis derecognisedwhen replaced.All other repairs andmaintenance are charged to consolidated Statementofprofitandlossduringthereportingperiodinwhichtheyareincurred.

2.6 Capital work in progress and intangible assets under development:

Capital work in progress and intangible assets underdevelopmentareproperty,plantandequipmentthatarenotyetreadyfortheirintendeduseatthereportingdate,whicharecarriedatcost,comprisingdirectcost,relatedincidentalexpensesandattributableborrowingcost.

2.7 Intangible Assets

Design development: Cost incurred on DesignDevelopment which are not directly chargeable on aproductarecapitalizedasIntangibleAssetandamortisedonastraight-linebasisoveraperiodoffiveyears.

Software: Cost of software which is not an integralpartoftherelatedhardwareacquiredforinternaluseis capitalised as intangible asset and amortised on astraight-linebasisoveraperiodofthreeyears.

Right touse:Up- front feepaid forsecuring right touseoflandandotherfacilityiscapitalizedasintangibleassetandamortisedonastraight linebasisover theperiodofleaseforwhichtherighthasbeenobtained,commencingfromthedateonwhichtherightbecomescapableofbeingexercised.

Internally generated procedure: Cost of internallygeneratedweldprocedure iscapitalizedas IntangibleAsset and amortised on a straight-line basis over aperiodofthreeyears.

The residual values, useful lives and methods ofamortization of intangible assets are reviewed ateachfinancialyearendandadjustedprospectively, ifappropriate.

2.8 Leases

As a lessee:

Leases are classified as finance leaseswhenever thetermsof lease transfer substantially all the risks andrewards of ownership to the lessee. Leases where

a significant portion of the risks and rewards ofownershipareretainedbythelessorareclassifiedasoperatingleases.

(i) Operating Lease:

Operating lease payments are recognized as anexpense intheconsolidatedStatementofProfitand Loss on a straight-line basis over the leaseterm except where another systematic basisis more representative of the time pattern inwhicheconomicbenefitsfromleasedassetsareconsumedorunlesstheleaseagreementexplicitlystatesthatincreaseisonaccountofinflation.

(ii) Finance Lease:

AssetstakenonleasebytheGroupinitscapacityas lessee,where theGrouphas substantially alltherisksandrewardsofownershipareclassifiedasfinancelease.Suchleasesarecapitalisedattheinceptionoftheleaseatlowerofthefairvalueorthe present value of the minimum lease payments and a liability is recognised for an equivalentamount. Each lease rental paid is allocatedbetweenthe liabilityandthe interestcostsoastoobtainaconstantperiodicrateof interestontheoutstandingliabilityforeachyear.

As a lessor:

Lease income is recognised based on the leaseagreementsandischargedtoconsolidatedStatementofProfitandLoss

2.9 Investment Properties

Investmentpropertiesarepropertiesheldtoearnrentalsand/or forcapital appreciation. Investmentpropertiesare measured initially at cost including transactioncosts. Subsequent to initial recognition, investmentproperties are stated at cost less accumulateddepreciation and impairment losses.Any gain or losson disposal of investment property is determined asthedifferencebetweennetdisposalproceedsandthecarrying amountof theproperty and is recognised intheconsolidatedStatementofProfitandLoss

2.10 Depreciation

Depreciation on property, plant and equipment isprovided on straight-line method based on useful



life of the asset as prescribed in Schedule II to theCompaniesAct,2013.For the assets acquired by the parent CompanyfromCochinPortTrustforInternationalShipRepairFacility (ISRF),depreciation is providedon thebasisof remaining useful life as assessed by technicalexperts.An item of property, plant and equipment and anysignificant part initially recognised is derecognisedupon disposal orwhen no future economic benefitsare expected from its use or disposal.Any gain/lossarisingonderecognitionoftheassetisincludedintheconsolidated Statement of profit and loss when theasset is derecognised.Fully depreciated assets still inuseare retained inconsolidatedfinancial statementsatresidualvalue.Depreciationmethod,usefullivesandresidualvaluesare reviewed at each reporting date and adjustedprospectively,ifappropriate.Management believes that useful life of assets aresame as those prescribed in Schedule II to theAct,exceptforcertaintypesofbuildingsandequipmentswhereinbasedontechnicalevaluation,usefullifehasbeen estimated to be different from that prescribedin Schedule II of the Act.Useful life considered forcalculationofdepreciationforvariousassetsclassareasfollows:

Asset Class Useful LifeBuildings 3-60years

Plantandequipment 5-15years

Furnitureandfixtures 8-10years

Vehicles 8-10years

Officeequipment 3-10years

DataProcessingEquipments

3-6years

Docksandquays 15 years

Railwaysidings 15 years

Electricalinstallation 10years

Drainageandwatersupply 15 years

Vessels 13-28years

2.11 Impairment of Assets

The Group assesses the impairment of assets withreferencetoeachcashgeneratingunit,ateachBalanceSheet date. If events or changes in circumstancesbasedoninternalandexternalfactorsindicatethatthecarryingvaluemaynotberecoverableinfull,thelossonaccountandtherecoverableamount,isaccountedforaccordingly.Therecoverableamountisthehigherofanasset’sfairvaluelesscostsofdisposalandvaluein use.

2.12 Non-current assets held for sale

Groupclassifiesanon-currentassetasheldforsaleifitscarryingamountwillberecoveredprincipallythrougha sale transaction.This condition is regarded asmetonlywhentheassetisavailableforimmediatesaleinitspresentconditionanditssaleishighlyprobable.

Non-currentassetsincludingdiscontinuedoperations,classifiedasheldforsalearemeasuredatthelowerofthecarryingamountsandfairvalue lesscosts tosellandpresentedseparatelyintheconsolidatedfinancialstatements.Onceclassifiedasheldforsale,theassetsarenotsubjecttodepreciationoramortisation.

Any profit or loss arising from the sale or re-measurementofdiscontinuedoperationsispresentedaspartofasinglelineiteminconsolidatedstatementofprofitandloss.

2.13 Inventories

(a) Raw materials, components, stores and sparesare valued at weighted average cost method ornet realisable value whichever is lower. Provisionfor obsolescence / non- usability / deterioration isdeterminedonthebasisoftechnicalassessmentmadebythemanagement.Goodsintransitisvaluedatlowerof cost or net realisable value. Stock ofmaterials inrespectofconstructionofdefencevesselswhereinthecost incurred is reimbursedby theownerare shownasreductionfromtheadvancespaidbytheownerforconstructionofthevessel.

(b) Work in progress:

Work in progress Ship Building :- Work in progressis recognised only when the percentage of physicalcompletion is less than the financial completion,in which case the cost proportionate to excess of



percentage of financial completion over physicalcompletionistreatedasWorkinprogress.Inthecaseof IndigenousAircraft Carrier since all the materialsbelongs to Indian Navy, work in progress is notrecognized.

Work in progress of ships/offshore structures underrepair,whichhavenotreached75%stageofphysicalcompletion and general engineering jobs are valuedat cost. Work- in- progress of ships where physicalconstructionhasnotstartedisalsovaluedatcost.

(c)Loosetoolsinstockarevaluedatcostafterprovidingforlossonrevaluationestimatedat30%ofbookvalue.

(d)Stockofscrapisvaluedatnetrealizablevalueafteradjustingcustomsduty,ifany,payableonthescrap.

2.14 Financial instruments

FinancialassetsandliabilitiesarerecognisedwhentheGroupbecomesapartytothecontractualprovisionsof the instrument

Financial assets and liabilities are initially measuredat fair value. Transaction costs that are directlyattributable to the acquisition or issue of financialassets and financial liabilities (other than financialassets and financial liabilities at fair value throughprofitorloss)areaddedtoordeductedfromthefairvaluemeasuredoninitialrecognitionoffinancialassetorfinancialliability.

Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets are measured at fair value throughothercomprehensive income if thesefinancialassetsareheldwithinabusinesswhoseobjectiveisachievedbybothcollectingcontractualcashflowsthatgiveriseonspecifieddatestosolelypaymentsofprincipalandinterest on theprincipal amount outstanding andbysellingfinancialassets.

Financial assets at fair value through statement of profit and loss (FVTPL)

Financial assets are measured at fair value throughprofitor lossunless it ismeasuredatamortisedcostorat fairvaluethroughothercomprehensive incomeon initial recognition. The transaction costs directlyattributable to the acquisition of financial assets

and liabilities at fair value through profit or loss areimmediately recognised inconsolidatedstatementofprofitandloss.

Financial Assets

Financial assets at amortised cost

Financial assets are subsequently measured atamortisedcostifthesefinancialassetsareheldwithinabusinesswhoseobjectiveistoholdtheseassetsinorderto collect contractual cashflows and the contractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.

Investments

AllequityinvestmentsinscopeofIndAS109FinancialInstruments, are measured at fair value. Equityinstrumentswhich are held for trading are classifiedas at FVTPL. For all other equity instruments, theGroupmaymakeanirrevocableelectiontopresentinother comprehensive income subsequent changes inthe fairvalue.TheGroupmakessuchelectiononaninstrument-by- instrumentbasis.The classification ismadeoninitialrecognitionandisirrevocable

Trade Receivables

The Group assesses at each Balance Sheet datewhetherafinancialassetoragroupoffinancialassetis impaired. IndAS109requiresexpectedcredit losstobemeasuredthroughalossallowance.TheGrouprecognises lifetime expected credit losses for alltrade receivables that do not constitute a financingtransaction. Impairment lossallowance isbasedonasimplifiedapproachaspermittedbyIndAS109.Asapracticalexpedient,theGroupusesaprovisionmatrixtodeterminetheimpairmentlossontheportfolioofitstradereceivables.

Full provision is made for all trade receivablesconsidereddoubtfulofrecoverywhenthedebtismorethanthreeyearsorif it isprobable/certainthatthedebtisnotrecoverable.

Where debts are disputed in legal proceedings,provision ismade ifanydecision isgivenagainst theGroupevenifthesameistakenuponappealtohigherauthorities/courts.



Impairmentlossallowance(orreversal)thatisrequiredto be recognised at the reportingdate is recognisedas an impairment loss or gain in the consolidatedStatementofProfit&Loss Account.

Cash and cash equivalents

The Group considers all highly liquid financialinstruments,whicharereadilyconvertibleintoknownamounts of cash that are subject to an insignificantriskofchange invalueandhavingoriginalmaturitiesofthreemonthsorlessfromthedateofpurchase,tobecashequivalents.Cashandcashequivalentsconsistof balances with banks which are unrestricted forwithdrawalandusage.


Financial liabilities are measured at amortised costusingtheeffectiveinterestratemethod.

Equity Instruments

AnequityinstrumentisacontractthatevidencesresidualinterestintheassetsoftheGroupafterdeductingallofits liabilities.Equity instrumentsare recognisedat theproceedsreceivednetoffdirectissuecost.

Off setting of financial instruments

Financial assets and financial liabilities are off setand the net amount is reported in the consolidatedfinancialstatementsifthereisacurrentlyenforceablelegalrighttooffsettherecognisedamountsandthereisan intentiontosettleonanetbasis, torealisetheassetsandsettletheliabilitiessimultaneously.

Foreign Currency Transactions

Functional & Presentation Currency

TheconsolidatedfinancialstatementsarepresentedinIndianRupees(“INR”),whichisthefunctionalcurrencyandpresentationcurrencyoftheGroup.

Transactions & Balances:

Foreign exchange transactions are recorded infunctional currency adopting the exchange rateprevailing on the dates of respective transactions.Monetory items denominated in foreign currenciesattheyearendarere-measuredattheexchangerateprevailing on the balance sheet date.Nonmonetary

foreigncurrencyitemsarecarriedatcost.Anyincomeorexpenseonaccountofexchangedifferenceeitheronsettlementoronrestatement isrecognised intheconsolidatedstatementofProfitandLoss.

Derivative instruments and hedge accounting:

TheGroupdesignatescertainforeignexchangeforwardcontracts ashedge instruments in respectof foreignexchange risks. These hedges are accounted for ascashflowhedges.Derivativesare initially recognisedatfairvalueonthedateaderivativecontactisenteredinto and are subsequently re-measured to their fairvalueattheendofeachreportingperiod.

Theuseof foreigncurrencyandderivativecontractsis governed by the Group’s foreign exchange riskmanagement policy approved by the Board ofDirectors which provide written directives on theuse of such financial derivatives consistentwith theGroup’s risk management strategy. The Group doesnotusederivativefinancialinstrumentsforspeculativepurposes.

The hedge instruments are designated anddocumentedashedgesattheinceptionofthecontract.Theeffectivenessofhedgeinstrumentstoreducetheriskassociatedwiththeforeigncurrencyexposurethatisbeinghedgedisassessedandmeasuredatinceptionand on an ongoing basis. The ineffective portion ofdesignatedhedgesarerecognisedimmediatelyintheconsolidatedStatementofProfitandLoss.

Theeffectiveportionofchangeinthefairvalueofthedesignated hedging instrument is recognised in theOtherComprehensiveIncomeandaccumulatedundertheheadingcashflowhedgereserve.

Hedgeaccounting isdiscontinuedwhen thehedginginstrumentexpiresorissold,terminatedorexercisedwithout replacement or rollover (as part of hedgingstrategy), or if its designationas ahedge is revoked,orwhen the hedge no longermeets the criteria forhedgeaccounting.AnygainorlossrecognisedinOtherComprehensiveIncomeandaccumulatedinequitytillthattimeremainsandisrecognisedintheconsolidatedStatement of Profit and Loss when the forecastedtransactionultimatelyaffectstheprofitorloss.Whenaforecastedtransactionisnolongerexpectedtooccur,the cumulative gain or loss accumulated in equity is



transferred to the consolidated Statement of ProfitandLoss.2.15 Advance/progress payments received Advance/progresspaymentsreceivedfromcustomersinrespectofrepairworkofships/offshorestructuresare shown as deduction from the amount of workin progress in respect of income recognized underproportionatecompletionmethod.Inthecaseofshipbuilding, the advance payment received is adjustedonlywhentheshipisinvoiced.2.16 Provision , Contingent Liabilities and Contingent assets Aprovisionisrecognisedif,asaresultofapastevent,theGrouphasapresent legalobligation thatcanbeestimated reliably, and it isprobable thatanoutflowof economic benefits will be required to settle theobligation. Provisions (excluding retirement benefitsand compensated leave) are not discounted to itspresentvalueandaredeterminedbythebestestimateof the outflow of economic benefits required tosettle theobligationat the reportingdate.Thesearereviewedateachreportingdateadjustedtoreflectthecurrentbestestimates.Provisiontowardsguaranteeclaimsinrespectofships/smallcraftsdeliveredwhereverprovidedmaintainedisbasedontechnicalestimation.Fortheshipsdelivered,guarantee claims are covered by way of insurancepoliciescoveringtheguaranteeperiodoncasetocasebasis,whereverrequired.Inthenormalcourseofbusiness,contingentliabilitiesmay arise from litigations and other claims againstthe Group. Where the potential liabilities have alowprobabilityof crystallizingorareverydifficult toquantifyreliably,wetreatthemascontingentliabilities.Such liabilitiesaredisclosed in thenotesbutarenotprovided for in the financial statements. Althoughtherecanbenoassuranceregardingthefinaloutcomeof the legal proceedings, we do not expect themto have amaterially adverse impact on our financialpositionorprofitability.TheGroupdoesnotrecogniseacontingentliabilitybutdisclosesitsexistenceintheconsolidatedfinancialstatements.Contingentassetsareneitherrecognisednordisclosed.However, when realisation of income is virtuallycertain,relatedassetisrecognised

2.17 Revenue Recognition

a) Contracts for the construction of ships and small crafts

(Other than Indigenous Aircraft Carrier)

Theincomefromshipbuildingisrecognizedonpercentageofcompletionmethod,intheproportion the cost incurred for the workperformeduptothereportingdatebeartotheestimatedtotalcontractcost,consideringthe physical progress or financial progress,whicheverislower.Wherecurrentestimatesoftotalcontractcostsandrevenueindicatealoss,provisionismadefortheentireloss,irrespectiveoftheamountofworkdone.

b) Construction of Indigenous Aircraft Carrier

Inthecaseofparentcompany,withrespecttoconstructionofIACwhichispartlyfixedprice basis and partly cost plus basis, theincomefromfixedpriceisrecognisedonthepercentageofcompletionmethod.

Mark up from cost plus part of contractactivities for materials and designoutsourcingarerecognisedwhenpaymentstowards the same are made. Cost ofmaterials, value of design outsourcing andother expenses incurred for the vesselwhich are recoverable separately fromNavy is charged off to the consolidatedstatementofProfitandLosswhenmaterialsare consumed/activities are performed/expenses are incurred and are grossed upwiththevalueofworkdoneandrecognisedas income.

c) Contracts for repair of ships/ Offshore structures:

Income from repair of ships /Offshorestructures is recognized based onproportionate completion method whenproportionate performance of each shiprepair activity exceeds 75% after takinginto consideration possible contingencieswith reference to the realizable value of



work done. The proportionate progressis measured by the Group’s technicalevaluation of the percentage of physicalcompletionofeach job. Inthecaseofshiprepair contracts completed and invoicessettled during theyear, income recognizedis net of reductions due to price variationadmitted. Inthecaseofunsettled invoices,the income is recognised net of estimatedamountofreductions.Differences,ifany,onsettlement are adjusted against income intheyearofsettlement.

d) Government Grants

Government grants are recognised whenthereisreasonableassurancethattheGroupwillcomplywiththeconditionsattachingtothemandthatthegrantswillbereceived.

Government grants are recognised in theconsolidated Statement of Profit and Losson a systematic basis over the periods inwhich the Group recognises as expensesthe related costs forwhich the grants areintended to compensate.Where theGrantrelates to an asset value, it is recognisedas deferred income, and amortised overtheexpectedusefullifeoftheasset.Othergrants are recognised in the consolidatedstatementofProfit&Lossconcurrenttotheexpenses towhich such grants relate/ areintendedtocover.

Government grants that are receivableas compensation for expenses or lossesalreadyincurredorforthepurposeofgivingimmediate financial support to the Groupwithnofuturerelatedcostsarerecognisedin the consolidated statement of profit &loss in the period in which they becomereceivable.

e) Liquidated damages and interest on advances

No income has been recognized onaccount of (a) interest on advances givenand (b) liquidated damages, where theleviesdependondecisions regarding force

majeure condition of contract. These areaccounted for on completion of contractsand/orwhenfinaldecisionsaretaken.

f) Accounting for insurance claims

(i) Warranty/Builder Risk claims

In the case of guarantee defectscovered under warranty insurancepolicies or claims under builders riskInsurance Policies, the insuranceclaimslodgedwillberecognizedintheconsolidatedfinancialstatementsintheyear inwhichthesurvey iscompletedandtheprobableamountofsettlementintimatedbytheinsurancecompany.

(ii) Other Insurance Policies

InthecaseofotherInsurancePolicieslikeAssetInsurance,TransitInsurance,Marine Insurance, Cash Insuranceetc., the claims are recognized inthe consolidated financial statmentson settlement of the claims by wayof receipt of the amount from the Insurancecompany.

g) Others

Dividend income is recognized when theGroup’s right to receivepaymenthasbeenestablished.

2.18 Employee benefits

Employee benefits consist of salaries and wages,contribution to provident fund, superannuationfund, gratuity fund, towards medical assistance,which are short term in nature and contributiontowardscompensatedabsences,whichislongtermin nature.

Post-employment benefit plans

Defined Contribution plans

In respect of parent company defined contributiontoEmployeesPensionschemeforeligibleemployeesare made to CSL Superannuation Pension Trust forExecutivesandSupervisorsandCSLWorkmenPensionTrust and are charged as expense as they fall due.



Such benefits are classified as Defined ContributionSchemesas thecompanydoesnot carryany furtherobligations,apartfromthecontributionsmade.

Theparentcompanyalsomakescontributiontowardsprovident fund, in substance a defined contributionretirement benefit plan. The provident fund isadministeredby theTrusteesof theCochinShipyardLimitedEmployeesContributoryProvidentFundTrust.Therulesofthecompany’sprovidentfundadministeredbytheTrust,requirethatiftheBoardofTrusteesareunable to pay interest at the rate declared by theEmployees’ProvidentFundbytheGovernmentunderpara 60 of the Employees’ Provident Fund Scheme,1952forthereasonthatthereturnoninvestmentislessorforanyotherreason,thenthedeficiencyshallbemadegoodbythecompany.Havingregardtotheassetsofthefundandthereturnontheinvestments,thecompanydoesnotexpectanydeficiencyasattheyearend.

TheparentcompanyalsomakescontributiontowardsEmployees Medical Assistance Trusts which arecharged as expense as they fall due. Such benefitsareclassifiedasDefinedContributionSchemesasthecompanydoesnotcarryanyfurtherobligations,apartfromthecontributionsmade.

Defined benefit plans

The Group provides for gratuity, a defined benefitretirement plan covering eligible employees. Theliability or asset recognised in the balance sheet inrespectofitsdefinedbenefitplanisthepresentvalueof the defined benefit obligation at the end of thereportingperiodlessthefairvalueofplanassets.Thedefinedbenefitobligationiscalculatedperiodicallybyactuariesusingtheprojectedunitcreditmethod.

The present value of the said obligation isdetermined by discounting the estimated futurecash outflows, using market yields of governmentbonds thathave termsapproximating the termsoftherelatedliability.

The interest income / (expense) are calculated byapplyingthediscountratetothenetdefinedbenefitliabilityorasset.Thenetinterestincome/(expense)onthenetdefinedbenefitliabilityorassetisrecognisedintheconsolidatedStatementofProfitandloss.

Remeasurement gains and losses arising fromexperience adjustments and changes in actuarialassumptionsarerecognisedintheperiodinwhichtheyoccur, directly in other comprehensive income.Theyare included in retainedearnings in theconsolidatedStatementofChangesinEquityandintheconsolidatedBalanceSheet.

Changes in the present value of the defined benefitobligation resulting from plan amendments orcurtailments are recognised immediately in theconsolidated Statement of profit and loss as pastservice cost.

Other employee benefits

Compensated absences

TheGrouphasapolicyoncompensatedabsencewhicharebothaccumulatingandnon-accumulatinginnature.The expected cost of accumulating compensatedabsence is determined by Actuarial valuationperformedbyanindependentactuaryateachBalanceSheetdateusingprojectedunitcreditmethodontheadditional amount expected to be paid/availed as aresultofunusedentitlementthathasaccumulatedattheBalanceSheetdateandprovidedfor.Expenseonnon-accumulatingcompensatedabsenceisrecognisedintheperiodinwhichtheabsencesoccur.

2.19 Borrowing cost

General and specific borrowing costs directlyattributabletoacquisition/constructionorproductionofqualifyingassets(netofincomeearnedontemporarydeployment of funds) are capitalized as part of costof such assets upto the date when such assets areready for the intended use.A qualifying asset is onethatnecessarilytakessubstantialperiodoftimetogetreadyforitsintendeduse.Allotherborrowingcostsarecharged to the consolidated Statement of Profit andLossintheperiodinwhichtheyareincurred.Borrowingcostalso includesexchangedifferencestotheextentregardedasanadjustmenttotheborrowingcosts

2.20 Corporate Social Responsibility

TheGroup has opted to charge its Corporate Socialresponsibility (CSR) expenditure to the consolidatedStatement of Profit & Loss, except in respect ofexpenditure incurred against the non-lapsable



provisionheldundertheguidelinesofDepartmentofPublicEnterprises(DPE)

2.21 Prior period adjustment Priorperiodadjustmentsduetoerrors,havingmaterialimpact on the financial affairs of the Group, arecorrectedretrospectivelybyrestatingthecomparativeamountsforpriorperiodspresentedinwhichtheerroroccurred or if the error occurred before the earliestperiodpresented,byrestatingtheopeningstatementoffinancialposition.

2.22 Taxes on Income Income tax Income tax expense comprises current tax expenseand the net change in the deferred tax asset orliability during the year.Current and deferred taxesarerecognisedintheconsolidatedStatementofProfitand Loss, exceptwhen they relate to items that arerecognisedinothercomprehensiveincomeordirectlyinequity,inwhichcase,thecurrentanddeferredtaxarealsorecognisedinother comprehensive income or directlyinequity,respectively.

Current tax

Currenttaxismeasuredattheamountoftaxexpectedtobepayableon the taxable income for theyear asdetermined in accordance with the provisions ofthe Income Tax Act, 1961.Current tax assets andcurrenttaxliabilitiesareoffsetwhenthereisalegallyenforceable right to set off the recognized amountsand there is an intention to settle the asset and theliabilityonanetbasis.

Deferred tax

Deferred incometax is recognisedusing theBalanceSheet approach. Deferred income tax assets andliabilities are recognised for deductible and taxabletemporarydifferencesarisingbetweenthetaxbaseofassetsandliabilitiesandtheircarryingamount,exceptwhen thedeferred income taxarises from the initialrecognition of an asset or liability in a transactionthatisnotabusinesscombinationandaffectsneitheraccountingnortaxableprofitorlossatthetimeofthetransaction.

Deferredtaxassetsarerecognisedonlytotheextentthat it is probable that either future taxable profits

or reversalofdeferredtax liabilitieswillbeavailable,against which the deductible temporary differences,andthecarryforwardofunusedtaxcreditsandunusedtaxlossescanbeutilised.

The carrying amount of a deferred tax asset shallbe reviewed at the endof each reportingdate andreduced to the extent that it is no longer probablethatsufficienttaxableprofitwillbeavailabletoallowall or part of the deferred income tax asset to beutilised.

Deferredtaxassetsandliabilitiesaremeasuredusingthe tax rates and tax laws that have been enactedorsubstantivelyenactedby theendof thereportingperiod and are expected to apply when the relateddeferred tax asset is realised or the deferred taxliabilityissettled.

Deferred tax assets and liabilities are off set whenthere is a legally enforceable right to offset currenttax assets and liabilities andwhen the deferred taxbalancesrelatetothesametaxationauthority.

Minimum Alternate Tax credit is recognised asdeferredtaxassetonlywhenandtotheextentthereisconvincingevidencethattheGroupwillpaynormalincometaxduringthespecifiedperiod.Suchasset isreviewedateachBalanceSheetdateandthecarryingamount of theMAT credit asset iswritten down totheextentthereisnolongeraconvincingevidencetotheeffectthattheGroupwillpaynormal incometaxduringthespecifiedperiod.

2.23 Earnings Per Share

BasicearningspershareiscomputedbydividingprofitorlossattributabletoequityshareholdersoftheGroupbythenumberofequitysharesoutstandingduringtheyear.TheGroupdidnothaveanypotentiallydilutivesecuritiesinanyoftheyearspresented.

2.24 Segment Reporting

Operating segments are defined as components ofanenterpriseforwhichdiscretefinancial informationis available that is evaluated regularly by the chiefoperatingdecisionmaker,indecidinghowtoallocateresources and assessing performance. The Group’schief operating decision maker is the Chairman &ManagingDirectoroftheparentcompany.



TheGrouphasidentifiedbusinesssegments(industrypractice) as reportable segments. The businesssegmentscomprise:1)ShipBuildingand2)RepairofShips/offshorestructures.

Segmentrevenue,segmentexpenses,segmentassetsandsegmentliabilitieshavebeenidentifiedtosegmentson the basis of their relationship to the operatingactivities of the segment. Revenue, expenses, assetsand liabilitieswhich relate to the Group as awholeand are not allocable to segments on a reasonablebasishavebeenincludedunder“unallocatedrevenue/expenses/assets/liabilities”.

2.25 Consolidated statement of cash flow

Cash Flows are reported using the IndirectMethod,whereby profit/loss before tax is adjusted for theeffect of transactions of non-cash nature and anydeferralsoraccrualsofpastorfuturecashreceiptsorpaymentsanditemsofincomeorexpensesassociatedwith investing or financial cash flows. Cash flowsfrom operating, investing and financial activities ofthe Group are segregated based on the availableinformation.

For the purpose of the consolidated statement ofcashflow,Cashandcashequivalentcomprisecashatbanks andonhand and short-termdepositswith anoriginal maturity of three months or less,which aresubjecttoaninsignificantriskofchangesinvalue,netofoutstandingbankoverdrafts,ifany.Bankoverdrafts,if any, are disclosed within borrowings in currentliabilitiesintheConsolidatedBalanceSheet

2.26 Dividend to equity shareholders

Dividend to equity shareholders is recognised as aliability and deducted from shareholders’ equity, intheperiodinwhichthedividendsareapprovedbytheequityshareholdersinthegeneralmeeting.

2.27 Recent accounting pronouncements - Standards issued but not yet effective

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:

On28March2018,MCAhasnotifiedtheCompanies(Indian Accounting Standards) Amendment Rules,2018 containing Appendix B to Ind AS 21, Foreign

currency transactions and advance considerationwhich clarifies the date of the transaction for thepurposeofdetermining theexchange rate touseoninitial recognition of the related asset, expense orincome,whenanentityhasreceivedorpaidadvanceconsiderationinaforeigncurrency.

The amendment will come into force from 1 April2018. The Group is evaluating the requirement oftheamendmentand the impacton theConsolidatedfinancialstatements.TheeffectonadoptionofIndAS21isexpectedtobeinsignificant.

Ind AS 115, Revenue from Contract with Customers

IndAS115,RevenuefromContractwithCustomers:

On28March2018,MinistryofCorporateAffairshasnotifiedtheIndAS115,RevenuefromContractwithCustomers.

The core principle of Ind AS 115 is that an entityshould recognize revenue to depict the transfer ofpromised goods and services to customers in anamount that reflects the consideration towhich theentity expects to be entitled in exchange for thosegoodsandservices.Furtherthenewstandardrequiresenhanceddisclosuresaboutthenature,amount,timinganduncertaintyofrevenueandcashflowsarisingfromtheentity’scontractswithcustomers.

The standard permits two possible methods oftransition:

- Retrospective approach - Under this approach thestandardwillbeappliedretrospectivelytoeachpriorreporting period presented in accordance with IndAS 8 - Accounting policies, changes in accountingestimatesanderrors.

- Retrospectively with cumulative effect of initiallyapplyingthestandardrecognizedatthedateofinitialapplication(Cumulativecatch-upapproach)

The effective date for adoption of Ind AS 115 isfinancialperiodsbeginningonorafter1April2018.

In view of the significant complexities involved, theGroup is in the process of evaluating the impact onapplicationofIndAS115onitsconsolidatedfinancialstatements.



Note3:Property,PlantandEquipment

(`inlakhs)

Particulars

Gross carrying amount DepreciationNet

Carrying amount

As at 1st April

2017


year


year

As at 31st March

2018

As at 1st April

2017

For the year

Adjust-ment/ (with-

drawal)

As at 31st March

2018

As at 31st March

2018

Owned Assets

Land(Freehold) 587.54 - - 587.54 - - - - 587.54

Buildings 9,377.91 243.56 - 9,621.47 802.43 670.09 - 1,472.52 8,148.95

Plantandequipment 16,798.49 452.08 3.56 17,247.01 2,707.00 1,426.70 - 4,133.70 13,113.31

Furnitureandfixtures 813.24 64.26 1.67 875.83 165.35 102.94 1.03 267.26 608.57

Vehicles 344.49 177.14 27.77 493.86 92.74 53.67 3.23 143.18 350.68

Officeequipment 184.19 24.81 0.07 208.93 74.49 30.27 - 104.76 104.17

- -

Others - -DataProcessingEquipments 727.21 142.54 0.61 869.14 324.29 177.45 0.02 501.72 367.42

Docksandquays 4,466.45 - - 4,466.45 644.32 299.41 - 943.73 3,522.72

Railwaysidings 1.10 - - 1.10 - - - - 1.10

Electricalinstallation 1,182.08 108.73 - 1,290.81 444.64 156.02 - 600.66 690.15 Drainageandwatersupply 6.67 - - 6.67 - - - - 6.67

Vessels 19.74 - - 19.74 1.64 1.36 - 3.00 16.74

SubTotal 34,509.11 1,213.12 33.68 35,688.55 5,256.90 2,917.91 4.28 8,170.53 27,518.02


Buildings 838.22 - 838.22 165.53 85.32 - 250.85 587.37

Plantandequipment 85.89 27.56 - 113.45 25.84 13.27 - 39.11 74.34

Docksandquays 9.62 - - 9.62 8.35 - 8.35 1.27

Electricalinstallation 329.54 - 329.54 30.46 33.36 - 63.82 265.72

SubTotal 1,263.27 27.56 - 1,290.83 230.18 131.95 - 362.13 928.70

Total 35,772.38 1,240.68 33.68 36,979.38 5,487.08 3,049.86 4.28 8,532.66 28,446.72



In repect of parent company:

Landincludesthevalueof(a)landallottedonleasebasisto(i)BharatiyaVidyaBhavan(0.69045hectare)(ii)M/sIndianOilCorporationLtd(0.620hectare)forlayingpipeline(iii)landleasedtoM/sCochinAirProducts(0.30hectare)and(b)landleasedtoKeralaStateElectricityBoard(0.47hectare).

Valueof land includesvalueofbuildingsacquiredalongwith the land forwhichdepreciationhasnotbeenprovidedasthevalueisnotseparatelyavailableandmostofthesebuildingsarelikelytobedemolishedforputtingupfacilitiesforthefactory.

AssetstakenoverfromCochinPortTrust(CoPT)(₹1291.52lakhs)havebeenvaluedandlifeassessedbytechnicalexperts.Thislifehasbeentakenasabaseforarrivingattheremainingusefullifeforprovidingdepreciationfortheseassets.Theseassets togetherwithassets constructed/installedon land takenon lease fromCoPT,havebeendisclosed separatelyasassetsonleasedpremisesinthenoteno3toProperty,Plant&Equipments.

TheCompanyhascreatedmortgagefor₹12300LakhsonthelandedpropertiesoftheCompanyassecurityforthetaxfreebondsissuedbytheCompanyduringtheyear2013-14.

Note4:Capitalwork-in-progress (`inlakhs)


Plantandmachinery,BuildingsandCivilworks 11,285.07Capitalyarditems 199.27ProjectManagementfeesandmiscellaneouscapitalexpenditure 14.86Intangibleassetsunderdevelopment 575.00Total 12,074.20

Note5:OtherIntangibleassets(`inlakhs)

Particulars


As at 1st April

2017


year


year

As at 31st March

2018

As at 1st April

2017

For the year

Adjust-ment/ (with-

drawal)

As at 31st March

2018

As at 31st March

2018


27.67 - 27.67 10.75 9.22 - 19.97 7.70

Computer software 1,243.16 123.59 - 1,366.75 984.19 196.20 1,180.39 186.36

Righttouse-landandshiprepair facility

7,000.00 - 7,000.00 500.00 242.31 - 742.31 6,257.69

8,270.83 123.59 - 8,394.42 1,494.94 447.73 - 1,942.67 6,451.75



Note6:Investments-NonCurrent(ìnlakhs)


Unquoted (Fully Paid up)

Investment in equity instruments

Subsidiary company at costCochinShipyardEmployeesConsumerCo-operativeSocietyLimited2175'BClass'sharesof₹100each 2.18

KeralaEnviroInfrastructureLimited-70000equitysharesof₹10each 7.00

CochinWastetoEnergyPrivateLimited-100000equitysharesof₹10each 10.00

LessdiminutioninvalueofInvestmentCochinWastetoEnergyPrivateLimited (10.00)

Total 9.18

Aggregatevalueofunquotedinvestment 19.18

Aggregatevalueofimpairmentinvalueofinvestment 10.00

Consideringtheindicatorsofthevalueofaninvestmentsuchasinvestee’sassets,resultsetc.adecline,otherthantemporary,inthevalueofinvestmentinCochinWastetoEnergy(P)LtdisnoticedandaccordinglyfairvalueisconsideredasNil.

Note7:Loans-NonCurrent(ìnlakhs)


Unsecured,consideredgood:Securitydeposits 66.89

EmployeeadvancesLoanstorelatedparties 0.00

Otheremployees 80.88

Total 147.77

Note8:Incometaxassets/liability(net)(ìnlakhs)


NoncurrenttaxassetsAdvanceincometaxnetofprovisions 5,400.03Currenttaxassets/liabilitiesAdvanceincometaxnetofprovisions (1,071.47)Taxdeductedatsource 1.86



IncometaxrecognisedintheStatementofprofitandloss(ìnlakhs)


Currenttax:Currentincometaxcharge 22,406.57

Adjustmentinrespectofprioryears 5.43

Total(A) 22,412.00

Deferredtax:Inrespectofcurrentyear (1,613.85)

Total(B) (1,613.85)

IncometaxexpenserecognisedintheStatementofProfitandLoss(A+B) 20,798.15

Theincometaxexpensefortheyearcanbereconciledtotheaccountingprofitasfollows:(ìnlakhs)


Profitbeforetax 60,424.14

[email protected]% 20,911.58

Effectofexpensesthatarenotdeductibleindeterminingtaxableprofit 5,312.99

Effectofexpensesthatareallowableindeterminingtaxableprofit (2,642.89)EffectofexpensesincurredonCorporateSocialResponsibilitynotdeductibleindeterminingtaxableprofit 296.62

Effectofincomethatisexemptfromtaxation (64.32)

Others (1,407.41)

22,406.57

Adjustmentsrecognisedinthecurrentyearinrelationtothecurrenttaxofprioryears 5.43

Adjustmentsforchangesinestimatesofdeferredtaxassets (1,613.85)

IncometaxexpenserecognisedintheStatementofProfitandLoss 20,798.15

Note9:Deferredtaxassets(net)(ìnlakhs)


Deferredtaxliabilities 3,954.57

Deferredtaxassets (8,299.69)

Total (4,345.12)




Particulars Opening balance

Recognised in Statement of Profit

and Loss


EquityClosing Balance

Provisions (5,226.67) (2,212.21) 0.00 (7,438.88)

Property,plantandequipment 4,045.04 (87.00) 0.00 3,958.04

Intangibleassets 27.86 (31.33) 0.00 (3.47)

Others (1,279.66) 716.69 (297.84) (860.81)

Total (2,433.43) (1,613.85) (297.84) (4,345.12)

Note10:Othernon-currentassets(`inlakhs)


Unsecured,consideredgoodCapitaladvances 6,641.69Advancesotherthancapitaladvances:Securitydeposits 218.77Advanceleaserentals 575.59DepositswithCustomsdepartment 261.22Total 7,697.27



Note11:Inventories(`inlakhs)


RawMaterialsandcomponents* 11,301.78

Less:Provisionforobsolescence,non-usability,deteriorationandreductioninvalueofinventory (331.27)

Goods-intransit* 5,795.66

16,766.17

Work-in-progress(Valuedatcost) 6,284.46

Work-in-progress(Valuedatnetrealisablevalue) 6,787.00

13,071.46

Stores&Spares* 586.36

Less:Provisionforobsolescence,non-usability,deteriorationandreductioninvalueofinventory (27.97)

Goods-intransit* 82.72

641.11

LooseTools* 794.58

Scrap* 182.35

Total 31,455.67

*ValuationofinventoriesaredoneinaccordancewithAccountingPolicyno.2.14giveninNoteno.2

(i) Inventorydoesnot includestockof rawmaterialsandboughtoutcomponentsprocuredunder “”costplus””partof the IACcontractamounting to ₹71053.76lakhsheldonbehalfofIndianNavylyingwiththeCompanyandisshownunderAdvancesfromIndianNavyforIndigenousAircraftCarrier.

(ii) Maintenancesparesincludedintheinventoryrepresentsparesofgeneralnatureandarenotrelatedtoaparticularasset.

Note12:Investments-Current(`inlakhs)


InvestmentinMutualFunds 0.16

Total 0.16DetailsofMutualFunds FundValueUTI-TreasuryAdvantageFund 0.16



Note13:TradeReceivables-Current(ìnlakhs)


UnsecuredConsideredgood:Basedoninvoice 25,473.28Basedonproportionatecompletionmethod 32,539.48Considereddoubtful 9,263.32Less:Allowancefordoubtfuldebts(Expectedcreditlossallowance) (9,263.32)Unsecured,considereddoubtful(Net) 0.00Total 58,012.76

Trade receivables include debts amounting to ₹32539.48 lakhs on account of income recognized under proportionate completionmethod pertaining toincompletevessels,againstwhichstagepaymentsreceivedamountingto₹88490.06lakhsforcompletedstage

Tradereceivablesarenon-interestbearingandreceivableinnormaloperatingcycle.

Movementintheexpectedcreditlossallowance(ìnlakhs)


Openingbalance 5,987.03Add:Provisionmade/transferduringtheyear 3,832.20Less:Amountcollected/reversalofprovision 555.91ClosingBalance 9,263.32

Note14:CashandCashequivalents(ìnlakhs)


Cashonhand 0.12BalancewithBanks

Incurrentaccount 1,264.15IncurrentaccountonbehalfofIndianNavy 62,807.09Termdepositswithoriginalmaturityoflessthan three months 16,627.39

Total 80,698.75Balanceincurrentaccountincludes₹3.84lakhsbeingIPOproceedsandTermdepositswithoriginalmaturityoflessthanthreemonthsincludes₹9437.39lakhsbeingproceedsfromIPOincludinginterestaccrued.

FundsreceivedfromIndianNavyfortheconstructionofIndigenousAircraftCarrierareheldinaseparateaccountandisseparatelydisclosed.

BankbalanceinCurrentAccountincludes` 838.65lakhtobeadjustedagainstGSTliabilityondeliveryofIACtowardsInputTaxCreditavailedonCostPlusprocurementsforIACfundedbyIndianNavy.



Note15:Bankbalancesotherthancashandcashequivalents(ìnlakhs)


TermDepositswithbankswithoriginalmaturitymorethan3monthsandlessthan12months 269,840.19Total 269,840.19

Depositswithbankswithmaturityupto12months,includes₹74689.22lakhsrelatingtoproceedsfromIPOincludinginterestaccrued.

Depositswithbankswithmaturityupto12months,includes₹76.96lakhsislienmarkedinfavourofTheRegistrarofHighCourt of Kerala.

Note16:Loans-Current(ìnlakhs)


Unsecured,consideredgoodEmployeeadvancesLoanstorelatedparties -Otheremployees 38.14

Total 38.14

Note17:OtherFinancialAssets-Current(ìnlakhs)


Interestaccruedonfixeddeposits 6,061.38Interestaccruedonemployeeadvances

Relatedparties -Otheremployees 23.35

FixedDepositwithHDFCLtd 20,000.00Total 26,084.73



Note18:OtherCurrentAssets(`inlakhs)


UnsecuredadvancesAdvancesotherthancapitaladvances

Advancestorelatedparty 4.44Otheradvances 5,589.06Advancesconsidereddoubtful 0.07

5,593.57Less:Provisionfordoubtfuladvances 0.07

5,593.50Others

BalancewithSalesTaxdepartmentandCBEC 427.32Miscellaneousdeposits 17.82AdvancetowardsSecuritydeposit 40.00Prepaidexpenditure 1,721.39Miscellaneouscurrentassets(Includingclaimsreceivable) 8,965.00

Total 16,765.03



Note19:EquityShareCapital

ParticularsAs at 31.03.2018

Number (`inlakhs) AuthorisedEquitysharesof₹10/-each 250000000 25,000.00Issued,SubscribedandFullypaidupEquitysharesof₹10eachfullypaidup 135936000 13,593.60Total 135936000 13,593.60

19.1Reconciliationofnumberofsharesandamountsoutstanding


Number (`inlakhs)EquitySharesoutstandingatthebeginningoftheyear 113280000 11,328.00Add:sharesissuedduringtheyear 22656000 2265.60EquitySharesoutstandingattheendoftheyear 135936000 13,593.60Duringtheyear,Companyhasraisedcapitalof₹2265.60lakhsthroughInitialPublicOffer(IPO)byissuing22656000equitysharesof₹10each.

Terms&RightsattachedtoEquityshares:TheCompanyhasonlyoneclassofequityshareshavingafacevalueof₹10persharewhichisfullypaidup.Equityshareholdersareeligibleforonevotepershareheld,andareentitledtodividendsasandwhendeclaredbytheCompany.InterimdividendispaidasandwhendeclaredbytheBoard.Finaldividendproposed/declaredbytheBoardofDirectorsissubjecttoapproval/regularisationbytheshareholders intheAnnualGeneralmeeting.Alldividendsarepaid in IndianRupees. Intheeventofliquidation,theequityshareholdersareeligibletoreceivetheremainingassetsofthecompanyafterdistributionofallpreferentialamounts,inproportiontotheirshareholding.

19.2Detailsofshareholdersholdingmorethan5%sharesinthecompany


Number of Shares held % of holding

ThePresidentofIndia 101952000 75.00

RelianceCapitalTrusteeCo.Ltd.-A/CRelianceTaxSaver(Elss)Fund 7104353 5.23



Note20:OtherEquity(`inlakhs)


Capital Reserves 263.56CapitalRedemptionReserve 11,914.20SecuritiesPremiumReserve 93,152.56DebentureRedemptionReserve 1,235.94General Reserve 6,322.75RetainedEarnings 199,064.70

311,953.71

Capital Reserve:CapitalreserverepresentsrestorationchargesreceivedfromMsIndianOilCorporationLtdforlayingpipelinethroughtheCompany'sland.

Capital Redemption Reserve:CapitalRedemptionReserveof₹11914.20lakhsrepresentsthereservescreatedonredemptionofpreferenceshareswhichwillbeutilisedforthepurposedefinedundertheCompaniesAct2013.

Securities Premium Reserve:

Premiumontaxfreebondsisamortisedonstraightlinebasisovertheperiodofbonds.

TheparentcompanyhascompletedanInitialPublicOffer('IPO')of33984000equitysharesoffacevalueof₹10each.Thiscomprisesofanofferforsaleof11328000equityshares(10%ofitsequityshareholding)undertheDisinvestmentprogrammeofGovt.ofIndia,thePresidentofIndiaactingthroughtheMinistryofShippingandafreshissueof22656000equitysharesandshareswereallottedon09Aug2017.TheequityshareswerelistedinBombayStockExchangeandNationalStockExchangeon11.08.2017.

TheparentCompanyhasallotted22656000equitysharesof₹10eachatpremium(₹93929.76lakhs).

ExpensesincurrednetofdefferedtaxadjustmenttowardssuchallotmentofsharesamountingRs777.93lakhshasbeendebitedinsecuritiespremiumreserveInaccordancewiththerequirementsofIndianAccountingStandard(IndAS)32-FinancialInstruments.

ReconciliationofOtherEquityasat31.03.2017

Particulars (`inlakhs)OtherEquity(ReservesexcludingRevaluationReserve)asat31.03.2017asperauditedFinancialStatementsasat31.03.2017 191783.15

Adjustmentsduringtheyearforpriorperioditems:DecreaseinretainedEarningsforincomes/expensesrelatingtoFY2016-17andperiodspriortoFY2016-17 (252.91)

OtherEquity(ReservesexcludingRevaluationReserve)asat31.03.2017nowrestated 191530.24Taxexpenses(currenttaxanddeferredtax)includespreviousyeartaxadjustmentsalso.

Debenture Redemption Reserve: In accordancewith provisions of Section71(4) of theCompaniesAct, 2013 readwithRule 18(7) ofCompanies(SharecapitalandDebentures)Rules,2014andasperSEBI(IssueandListingofDebtSecurities)Regulations,2008theCompanyhascreatedDebentureRedemptionReserve(DRR)amountingto₹1235.94lakhs(cumulative)at25%ofthevalueofdebentureissuedbytheCompany,overthematurityperiodofsuchdebentures,proportionatelyfortheperiodupto31.03.2018.

Proposed dividend :TheBoardofDirectorsoftheparentCompanyhaverecommendedafinaldividendof₹12/-perequityshareoffacevalueof₹10/-forthefinancialyearendedMarch31,2018attheboardmeetingheldonMay24,2018.



Note21:Borrowings(ìnlakhs)


(a)Bonds-fromotherparties(Secured)TaxFreeRedeemableNonConvertibleBonds-Series2013-14 12,300.00Total 12,300.00

TaxFreeInfrastructureBondSeries2013-14

a) Tranche 1: 1000 bonds of facevalue of ₹ 10 lakhs totalling ₹ 10000 lakhswith interest rate of 8.51% payable annually ,redeemableatpar,dueforredemptionon02ndDecember2023

b) Tranche 2:230bondsoffacevalueof₹10lakhstotalling₹2300lakhswithinterestrateof8.72%payableannually,redeemableatpar,dueforredemptionon28thMarch2029.

ThesebondsaresecuredagainstthelandedpropertiesoftheCompanyadmeasuring197.12ares(487.00cents)madeupof34.30aresinSyNo.713/11,23.57aresinSyNo.713/12,59.12aresinSyNo.713/13,50.18aresinSyNo.714/06,10.12aresinSyNo.714/2,8.90aresinSyNo.714/4and10.93aresinSyNo.714/5oflandallarelyingcontiguouslyinElamkulamvillage,Kanayannurtaluk,ErnakulamDist,Kerala.

Utilisation:TheCompanyhasfullyutilised/adjustedthebondissueproceedsof₹12300lakhstowardsvariousexpenditureincurredonInternationalShipRepairFacility(ISRF)project.

Differencebetweencarryingamountsandfairvaluesoffinancialliabilitiesofborrowingsisnotsignificantineachoftheyearpresented.

Note22:OtherFinancialliabilities-NonCurrent(ìnlakhs)


PayabletoChennaiPortTrust 261.22Total 261.22

Liabilityof₹261.22 lakhs toChennaiPortTrust in respectof customsduty is coveredbya refundappeal lyingbeforeCommissioner(Appeals)whichisalsoshownasdepositswithCustomsdepartmentunderNoteNo.10

Note23:Provisions-NonCurrent(ìnlakhs)


Provisionforemployeebenefits-Compensatedabsences(ReferNoteNo34) 2,265.70Total 2,265.70

Note24:Othernoncurrentliabilities(ìnlakhs)


DeferredIncomearisingfromGovernmentAssistance 13.74Total 13.74



Note25:TradePayables(`inlakhs)


Tradepayables(Unsecured)OutstandingduesofMicroenterprisesandSmallenterprises 682.19

OutstandingduesofcreditorsotherthanMicroenterprisesandSmallenterprises 26,700.78

Total 27,382.97

Insomecases,theGrouphasreceivedintimationfromMicroandSmallEnterprisesregardingtheirstatusunder“TheMicro,SmallandMediumEnterprisesDevelopmentAct,2006”.Theaveragecreditperiodongoodsandservicesarewithin30to60days.TheamountremainingunpaidtoMicroandSmallsuppliersasattheendofthefinancialyearis₹682.19lakhs.NointerestfordelaywaspaidorpayableundertheAct.

Note26:OtherFinancialLiabilities-Current(`inlakhs)


Interestaccruedbutnotdue 281.98

OthersSecurityandotherdeposits 734.16

OthersPayables 10,721.30

Total 11,737.44



Note27:OtherCurrentLiabilities(`inlakhs)


AdvanceforIndigenousAircraftCarrier(Costplus) 691,656.37

Less:IndigenousAircraftcarrierinventoryinstock 71,053.76

Less:Materialissued 429,719.34

Less:Designandotherdirectexpenses 30,758.47

Less:Advancepaidforpurchaseofmaterialsandservices 30,555.83

Less:Otherexpensesagainstcostplusactivities 68,684.02

60,884.95

AdvanceforIndigenousAircraftCarrierfixedpricecontract 309,179.83

Less:incomerecognisedsofar 323,993.64

(14,813.81)

AdvanceforIndigenousAircraftCarrierinfrastructure 28,517.05

Less:Assetsoninfrastructure 26,934.76

Less:Prepayment 14.00

1,568.29

AdvanceoutstandingforIndigenousAircraftCarrierworks(Net) 47,639.43

Advancesforothershipbuildingcontracts 88,515.06

Advancesforshiprepairandothers 1,099.15

Incomereceivedinadvance 23.28

Statutorydues 699.51

DeferredIncomearisingfromGovernmentAssistance 1.14

Total 137,977.57

CostofinfrastructurefacilitieswhichhasbeenmetoutoffundsfromNavyandadjustedbyIndianNavy,tilldate.(`inlakhs)

Details As at 31.03.2018

Buildingsandothercivilworks 8,600.39Dataprocessingequipment 1,294.44FurnitureandOfficeequipments 249.17Plantandmachinery 16,790.76Total 26,934.76



Note28:Provisions-Current(`inlakhs)


ProvisionforEmployeebenefitsGratuity 2,361.82Compensatedabsences 383.78Others 1,220.93

3,966.53OtherProvisionsTaxesandduties 196.48Provisionforshipbuildingloss 548.22Expenditure/contingencies 23,638.32

24,383.02Total 28,349.55

28.1Detailsofmovementofprovisions(`inlakhs)


Provision made during

the period

Amounts used during the period

Unused amounts reversed during

the period

As at 31.03.2018

a)Provisionfortaxesandduties 233.03 26.15 0.00 (62.70) 196.48

b)Provisionforshipbuildingloss 35.00 548.22 (35.00) 0.00 548.22c)Provisionforexpenditure/contingencies 20,208.25 17,355.54 (12,155.46) (1,770.01) 23,638.32d)Provisionforemployeebenefits-Others 21.31 1,220.93 (21.31) 0.00 1,220.93



Note29:Revenuefromoperations(`inlakhs)


SaleofproductsShipbuilding:IndigenousAircraftCarrier(IAC) 144,334.95

VesselsotherthanIAC 28,428.83

Engineeringworks 4.26

172,768.04

Sale of servicesShip repairs 62,326.64

62,326.64

OtheroperatingrevenueSaleofstockitems 0.05

ScripunderMEISscheme 417.60

417.65

Total 235,512.33

DisclosureasrequiredbyIndAS11-ConstructionContracts

(a) Shipbuilding income of ₹ 172763.78 lakhs includes revenue recognized under percentage of completion methodamountingto₹172729.20lakhsagainstincompletevessels.

(b) Methodofrevenuerecognition-Percentageofcompletionmethod

(c) Methodusedtodeterminethestageofcompletion-Stageofcompletionismeasuredintheproportiontoexpensesincurredtill theendof theyear to theestimated totalcostofcompletionof theprojectorpercentageofphysicalcompletionwhicheverisless.

(d) Forcontractsinprogressasattheendoftheyear.(`inlakhs)

2017-18

(i)Contractrevenuerecognizedintheperiod 172,729.20(ii)Contractcostincurredandrecognizedprofits(lessrecognizedlosses)uptothereportingperiod 885,255.31

(iii)Advancereceivedfromcustomers 926,392.08

(iv)Grossamountduetocustomers 66,535.58

(v)Grossamountduefromcustomers 25,398.81

Shiprepairincomeincludesincomerecognisedunderproportionatecompletionmethodamountingto₹21092.00lakhs

Incomefromshiprepairisnetofactual/anticipatedreductionsamountingto₹1922.81lakhs



Note30:OtherIncome(`inlakhs)


Trainingfacilities 241.12

Incomefromsaleofscrapandstores 457.51

Profitonsaleoffixedassets 1.34

Incomefromlaboratoryservices 33.52

Rentreceived 187.01

Interestonbankdeposits 15,106.14

Interestfromothers 333.90

Dividendincomefromequityinvestments/MutualFunds 185.84

ProfitonsaleofMutualFunds 669.82

Netgain/(loss)onforeigncurrencytransactions 217.73

Provisionnolongerrequired 1,103.03

Miscellaneousincome 385.49

Total 18,922.45

Miscellaneous income includes ₹ 1.14 lakhs being deferred government assistance in the form of subsidy relating toinstallationofSolarPowerplant inside theyard.Thesamehasbeenaccountedasper the requirementsof IndAS20 -AccountingforGovernmentGrantsandDisclosureofGovernmentAssistance.

Incomefromsaleofscrapandstoresisnetofimportdutyamountingto₹45.33lakhsonsaleofbondedscrapandstores.

Note31:CostofMaterialsConsumed(`inlakhs)


RawMaterialsSteel 4,235.44

Pipe 1,096.48

Paint 1,278.40

Boughtoutcomponents 109,955.32

Total 116,565.64



Note32:ChangesinInventoriesofWork-in-Progress(ìnlakhs)

(Otherthanthosewhicharerecognisedasincomeonpercentage/proportionatecompletionmethod)


Work-in-progress:Atthebeginningoftheyear 8,794.85

Less:attheendoftheyear 6,284.46

Decretion/(Accretion)towork-in-progress 2,510.39

Note33:SubContractandOtherDirectExpenses(ìnlakhs)


Subcontractandoffloadedjobs 17,950.24

Hullinsurance 51.04

Otherdirectexpenses 5,527.71

Total 23,528.99

Note34:EmployeeBenefitsExpense(ìnlakhs)


Salaries,wages,bonus/exgratiaandallowances 22,531.89ContributiontoProvidentFundandFamilyPensionFund 1,226.65

Gratuity 2,188.68

Staffwelfareexpenses 1,192.63

Total 27,139.85

ContributiontoProvidentFundandFamilyPensionFundincludesprovidentfundinspectionandadministrationcharges ₹15.16lakhs

Salaries,Wages,bonus/exgratiaandallowancesincludesprovisionforencashmentofhalfpaycompensatedabsencesforworkmenamountingto₹175.08lakhs

Theemployeebenefitsaccruing to theemployeesondeputationfromCochinPortTrustarebeingaccountedbasedondemandsreceivedfromCochinPortTrustaspertripartiteagreementbetweentheCompany,CochinPortTrustandtherecognisedTradeunionsofthePortandnotbasedonactuarialvaluationexceptforgratuitywhichisactuariallyvaluedfor2017-18.

Therevisioninpayandallowancesofofficersandnon-unionisedsupervisorswasduew.e.f01.01.2017andforworkmenw.e.f01.04.2017.Whilemostoftheduesinrespectoftheexecutiveshavecrystallisedandthesameforworkmenisunderfinalisation.Anamountof₹1200.96lakhshasbeencarriedasaliabilityasonMarch31,2018towardspendingdueonthisaccount.



OtherBenefitPlan-Compensatedabsences



DiscountRate(p.a) 7.72%

Rate of increase in compensation levels 3.00%

AmountrecognisedintheStatementofProfitandLossinrespectofdefinedbenefitplansareasfollows:-(ìnlakhs)


ServiceCost: Current Service Cost 172.90

NetInterestexpense 151.84

Acturial(Gain)/Lossrecognisedduringtheperiod 695.38

Expensesrecognisedinthestatementofprofitandloss 1020.12


(ìnlakhs)


PresentValueofDefinedBenefitObligationatendofthe year 2,649.48

FairValueofPlanAssetsattheendoftheyearNetLiabilities/(Assets)recognizedintheBalanceSheet 2,649.48

Movementsinpresentvalueofthedefinedbenefitobligationareasfollows:-(ìnlakhs)


DefinedBenefitObligationatbeginningoftheyear 2,474.40

Current&PastServiceCost 172.90

CurrentInterestCost 151.84

Actuarial(Gain)/Loss 695.38

Benefitspaid (845.04)

DefinedBenefitObligationatendoftheyear 2,649.48



Movementsinthefairvalueoftheplanassetsareasfollows:(`inlakhs)


FairValueofPlanAssetsatthebeginningoftheyear -

ExpectedReturnonPlanAssets -

Actuarial(Gain)/Loss -

Contributionsfromtheemployer 845.04


FairValueoftheAssetsattheendoftheyear -

DefinedBenefitPlan-Gratuity



DiscountRate(p.a) 7.72%

Rate of increase in compensation levels 3.00%

ExpectedRateofReturnonPlanAsset 7.72%

AmountrecognisedintheStatementofProfitandLoss/Othercomprehensiveincomeinrespectofdefinedbenefitplansareasfollows:-

(`inlakhs)


ServiceCost: Current Service Cost 111.41

PastServiceCost 1567.90

NetInterestexpense 8.71

Componentsofdefinedbenefitcostsrecognisedinstatementofprofitandloss 1688.02

Remeasurementofthenetdefinedbenefitliability:Actuarial(Gain)/LossonPlanObligations 220.67

DifferencebetweenActualReturnandInterestincomeonPlanassets(gain)/loss (15.63)

ComponentsofdefinedbenefitcostsrecognisedinOtherComprehensiveIncome 205.04




(ìnlakhs)


PresentValueofDefinedBenefitObligationatendoftheyear 5,077.72

Less:FairValueofPlanAssetsattheendoftheyear 3,211.31

NetLiabilities/(Assets)recognizedintheBalanceSheet 1,866.41

Movementsinpresentvalueofthedefinedbenefitobligationareasfollows:-(ìnlakhs)


DefinedBenefitObligationatbeginningoftheyear 3,713.66

Current Service Cost 111.41

CurrentInterestCost 245.88

PastServiceCost 1,567.91

Actuarial(Gain)/Loss 220.67


DefinedBenefitObligationatendoftheyear 5,077.72

Movementsinthefairvalueoftheplanassetsareasfollows:(ìnlakhs)


FairValueofPlanAssetsatthebeginningoftheyear 3,451.70ExpectedReturnonPlanAssets 237.18Actuarial(Gain)/Loss 15.63Contributionsfromtheemployer 288.61Benefitspaid (781.81)FairValueoftheAssetsattheendoftheyear 3,211.31

TheplanassetsaremanagedbytheGratuityTrustformedbytheCompany.



Note35:FinanceCosts(`inlakhs)


Bankinterest 36.42

Interestothers 53.17

Interestontaxfreebonds 1,051.44

Total 1,141.03

Note36:DepreciationandAmortisationExpense(`inlakhs)


Depreciationonproperty,plantandequipments 3,049.86Amortisationofotherintangibleasset 447.73Total 3,497.59Add:Lossonrevaluationoftools 253.43Total 3,751.02



Note37:OtherExpenses(`inlakhs)


Consumption of stores 1,446.32

Consumption of spares 62.32

Ratesandtaxes 56.91

Power 1,863.16

Fuel 651.62

Water 173.36

Repairsandmaintenance:Buildingandroads 554.08

Plantandmachinery 82.72

Others 1,119.77

Maintenancedredging 784.35

Transportandstoreshandling 125.95

Travellingandconveyanceexpenses 598.28

Printingandstationery 64.12

Postage,telephoneandtelex 44.39

Advertisementandpublicity 525.65

Leaserent 567.21

GuaranteedAmountunderleaseagreement 2.25

Hirecharges 509.73

Insurancecharges 230.64

Securityexpenses 1,342.98

Auditorsremuneration 13.00

Auditorsremunerationforotherservices 8.75

Trainingexpenses 521.48

Legalexpenses 16.68

Consultancy 104.04

Bankcharges 46.39

Corporatesocialresponsibility(ReferNoteno.45) 857.08

Lossonsale/writeoffofproperty,plantandequipments 15.48

Miscellaneousexpenses 1,126.13

Preincorporationexpenses 32.71

Total 13,547.55



Auditorsremuneration,AuditorsremunerationforotherservicesandMiscellaneousexpensesinclude:(ìnlakhs)


ForAuditFees 13.00

ForLimitedReview/otherservices 8.75

ForcertificationforInitialPublicOffer 12.00

Total 33.75

Note38:ProvisionforAnticipatedLossesandExpenditure(ìnlakhs)


Provisionfor:Doubtfuldebts/advances 3,804.88Nonmoving/perpetualinventoryverification 31.62Expensesandcontingencies 1,476.45ProvisionforlossonShipBuilding 513.22

Total 5,826.17

MODUSagarBhushan,anoilrigownedbyM/sONGCwasunderrepairatCSLandtherewasafireincidentonboardthevesselonFeb13,2018whilethevesselwasundergoingrepairs.Theincidentresultedindamagestothevessel.Thecompanyhasassessedtheestimateddamagecosttobe₹1851lakhs.CompanyhasanannualinsurancecoverforthevesselunderShipRepairer’sliabilitypolicywithalimitofliabilityforanyoneincidentof₹1500lakhswithanannuallimitof₹30,000lakhs.Thecompanyhasaccordinglymadeaprovisionforanamountof₹351lakhsnetofinsuranceclaim,towardsprobableloss on this

Note39:EarningsperEquityShare(ìnlakhs)


ProfitattributabletotheGroup 39,635.63WeightedaveragenumberofEquityShares 127866740BasicandDilutedEarningsPerShare(EPS)(in₹) 31.00

Facevalueperequity(in₹) 10.00



NOTESONACCOUNTS

Note40:CONTINGENTLIABILTIESANDCOMMITMENTS

Particulars

For the period ended

31 Mar 2018 Brief Description of the nature and obligation

(` in Lakhs)

A CONTINGENT LIABILITY (To the extent not provided for)

a Guarantees

i LettersofCredit 52,609.28 RepresentsLetterofCreditopenedbytheCompanyinvariousbanksforprocurementofmaterials/assets

ii BankGuarantees 125,157.57

iii CorporatePerformanceGuaranteetoCochinPortTrust 3,925.00

PerformanceguaranteegivenbyCompanytoCoPTforperformanceofobligationsunderthecontractagreemententeredwithCoPTduringthecontractperiod.

b Other money for which the company is contingently liable

i GreaterCochinDevelopmentAuthority(GCDA) 69.06

ClaimraisedbyGCDAforthelandacquiredfortheCompanyissettled.However8landacquisitionrevisionpetitioncases(ValuedatRs.69.06lakhs)filedbyevicteesispendingwiththeHon'bleSupremeCourtandHighCourt.

ii Customsduties 15,934.66

CustomsdutyformaterialsunderBondandIndigenousvesselsdelivered.IncludesanamountofRs69.83lakhs,beingCustomsdutyrefundgrantedbyCESTAT,Bangalore,againstwhichanappealispendingbeforetheHon'bleHighCourtofKerala.

iii SalesTax/KeralaValueAddedTax

1,259.75

2000-01-Rs.111.93Lakhs2001-02-Rs.73.44Lakhs2004-05-Rs195.67Lakhs2005-06-Rs.602.24Lakhs2007-08-Rs.276.47Lakhs(Underappeal.)

Stayofcollectionoftaxobtainedinallcases.DemandreducedtotheextentofamountpaidandappealallowedbyDeputyCommissioner(Appeals).DetailednotesinNoteno.40.1(II&III)

12.10 VATcreditfortheyear1996-97whichhasnotbeenconsideredinthedemand,forwhichnoprovisionexistsinthebooks



iv IncomeTax 6,077.84

DemandrelatingtoAssessmentYears: DemandrelatingtoAssessmentYears:(a)AY2009-10-Rs77.67LakhsAY2010-11-Rs.126.25LakhsAY2011-12-Rs.420.19LakhsAY2012-13-Rs.546.14LakhsAY2013-14-Rs.221.37LakhsAY2014-15-Rs.876.90Lakhs(b)AY1997-98-Rs2191.60LakhsAY1998-99-Rs967.27LakhsAY1999-00-Rs353.72LakhsAY2000-01-Rs170.31LakhsAY2001-02-Rs96.44Lakhs(c)AY2002-03-Rs29.99LakhsDetailednotesinNoteno.40.1(I)

v ServiceTax

1,647.47 DemandofServiceTaxonIAC(DesignConsultancy)asperShowCauseNoticeissued.Adjudicationpending

376.68

RefundclaimofServiceTaxonIACgrantedbyCommissioner(Appeal).HoweverDepartmentfiledAppealbeforeCESTATagainsttheorderofCommissioner(Appeals).AlsoissuedShowCauseNoticeonCSL&adjudicationpending.

323.04 DemandofServiceTaxonIAC(ManagementFee/HandlingCharges)asperShowCauseNoticeissued.Adjudicationpending

24.08Penaltyonservicetaxfortheperiod2003-04to2007-08whichispendingbeforeHon’bleHighCourtofKerala.

B COMMITMENTS (To the extent not provided for)

a Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedfor: 73,430.43

b Othercommitments

i

Investmentinsubsidiary(HooghlyCochinShipyardLtd)forwhichthecompanyhasrestrictionfortheirdisposalfor5yearsfromtheeffectivedateaspertheconcessionagreement.

1,628.00

iiUnutilisedamountofInitialPublicOffer(IPO)proceeds(Pendingutilisationamountdepositedwithvariousbanksincurrentaccountandtermdeposits)

82,621.86 DetailednotesinNoteno.41.b



40.1.CONTINGENCIESANDCOMMITMENTS

(I) Income Tax Assessments

(a) The IncomeTaxAssessmentof the companyhavebeen completedup toAY2014-15Demands raised as per theassessmentorderstotalingto₹2268.52lakhsfortheAssessmentYears2009-10,2010-11,2011-12,2012-13,2013-14and2014-15areshownunderContingentLiabilitypendingdisposaloftheappealsfiledbeforetheCommissionerofIncomeTax(Appeals).Thedemandsaremainlyduetodisallowanceofcertaingenuineclaims.HowevertheabovedemandshavebeenadjustedagainsttherefundduetoCompany.

(b) FortheAssessmentyears1997-98to2001-02,theIncomeTaxdepartmenthasgoneforappealagainsttheorderoftheITATallowedinfavourofCSLbeforetheHon'bleHighCourtofKerala.FortheAssessmentyear1997-98theappealwasdecidedinfavourofCSLandfortheAssessmentyear1998-99theappealwasdecidedagainstCSL.Howeverforboththeassessmentyearsordersareyettobegiveneffecttobythereassessingofficer.

(c) TheCompanyhasfiledappealbeforetheITATagainsttheorderofAssessingOfficer/CommissionerofIncomeTax(Appeals)andtheappealwaspartlyallowedinfavorofCompany,theeffecttotheorderhasnotyetbeengivenbythereassessingofficer.

(II) Sales Tax Assessment under KGST Act

TheSalesTaxassessmentsunderKeralaGeneralSalesTaxActuptotheAssessmentYear2004-05havebeencompletedandorderswere issued for all theyearsexcept for theyear2002-03&2003-04.Due to apparentmistake in theordersissuedfortheyear2000-01and2001-02,applicationshavebeenfiledforrectificationoftheorders.Pendingrectificationto theassessmentorders thedemandstheretohavebeenshownunderContingentLiabilities.For theAssessmentyear2004-05,theDeputyCommissioner(Appeals)hasdismissedtheappealfiledbytheCompanyagainstthedemandfor₹202.22lakhs.TheCompanyisintheprocessoffilingappealtoTribunal.

(III) Sales Tax Assessments under KVAT Act

The KVAT assessments from Assessment Year 2005-06 to Assessment Year 2007-08 have been completed andassessment orders were issued for Assessment Year 2005-06 and Assessment Year 2007-08 with a demand of₹2836.63lakhsand₹5554.71lakhsrespectively.TheappealsfiledbytheCompanyagainsttheaboveorders,beforetheDeputyCommissioner (Appeals)havebeenpartiallydecided infavouroftheCompanyandremandedforfreshassessments.Accordinglythedemandsaspertheoriginalassessmentordershavebecomenull.Assuchnodemandexists ason reportingdate.Pending receiptof the revisedassessmentorder, thecompanyfiledappealbefore theHon’bleKVATAppellateTribunalontheotherissues.TheappealiscurrentlypendingbeforetheTribunal.Assessmentorderfortheyear2006-07ispending.

41.a.TheEnvironmentalClearances,fortheISRFprojectreceivedfromMinistryofEnvironment,ForestandClimateChange(MOEFCC), is subject to obtaining prior clearance of the Standing Committee of the National Board forWildlife(“NBWL”).Pursuant to theSEBIExemption letterdatedJuly14,2017,SEBIhadpermitted theCompany toutilizethenetproceedsoftheInitialPublicOfferassignedtowardstheproposedISRFprojectandutilizesuchfundsraisedoncethenecessaryapprovalsforEnvironmentalClearancefortheISRFprojectarereceived.TheCompanyhadalsoundertakentoSEBIvideletterdatedJuly10,2017andfurtherstatedintheProspectusdatedAugust4,2017thatthenetproceedsassignedfortheproposedISRFprojectshallbetransferredtoaseparatebankaccountwhichwouldbeutilisedonlyafterrequisitependingapproval(s)arereceivedandallexpenditureontheISRFprojectshallbeincurredthroughinternalaccrualstillthetimesuchpendingapprovalsarereceived.

TheStateBoardforWildLifeattheirmeetingheldonAugust16,2017specifiedcompensatorymangroveafforestationbytheCompanyasaconditionwhilerecommendingtheproposaltotheNBWL.TheStandingCommitteeofNBWLintheir46thmeetingheldonDecember8,2017hasrecommendedtheEnvironmentalClearancefortheISRFproject



alongwithconditionsimposedbytheStateChiefWildLifeWarden(CWLW).TheconditionimposedbyStateCWLWistobecompliedduringtheimplementationoftheISRFprojectandthematterhasbeentakenupwiththeForestDepartment,GovernmentofKeralaand theprocessof identificationofnotifiedmangrovearea forafforestation isunderway.Accordingly, theCompanyhas considered thedateofEnvironmental clearance asJanuary9, 2018 andstartedutilisationofthefundssetapartforthispurposeafterintimatingSEBIvideletterdatedJanuary17,2018.

41.b.TheUtilisationofIPOproceedsissummarisedbelow:

(`inlakhs)

Particulars

IPO proceeds received

-Based on Final allotment

Actual cash outflow upto

March 31, 2018

Unutilised amount as at

March 31, 2018

SettingupofDryDock 51000.00* 330.72 50669.28

SettingupofISRF 26500.00* 1142.14 25357.86

General corporate purposes 16523.26 9956.42 6566.84

Issuerelatedexpenses(AttributtabletotheCompany) 2172.10** 2144.22 27.88

Total 96195.36 13573.50 82621.86

*AsperProspectusFiled**IncreaseinIPOexpenditure(Rs.172.10lakhs)comparedtotheestimatesisadjustedagainstamountspecifiedforGeneralCorporatePurpose

42. ThedisputebetweenM/sApeejayShippingLtd(formerlyknownasSurendraOverseasLtd)andtheCSL,inthematterofship005wasreferredforarbitrationbytheHon’bleSupremeCourtofIndia.Thearbitrationaward(July2009)wasinfavouroftheCSLunderwhichtheCSListoreceive₹2803.64lakhsfromM/sApeejayShippingLtd.ThecompanyhasfiledapetitionbeforeSubCourt,Ernakulamforpassingadecree.M/sApeejayShippingLtdhasmovedtotheSubCourttoquashtheAwardoftheUmpireandtheCompanyhasfiledCounterAffidavitagainstthismove.Thematterispendingbeforethecourt.Nocredithasbeentakeninthebooksofaccount,pendingfinaldecreeoftheCourt.

43. PermanentMachineryforArbitration,DepartmentofPublicEnterprises,Govt.ofIndia,hasnotifiedawardinfavouroftheCSLinthedisputebetweentheCSLandM/sOilandNaturalGasCorporationLtd(ONGC)ontheWorksContractTaxissueandONGChaspaidtotheCompanythedisputedsumalongwithinterestamountingto₹2642.22Lakhsaspertheaward.ONGChasgoneonappealbeforetheLawSecretary,MinistryofLaw&Justiceagainsttheaward.PendingdisposalofONGCappeal,noadjustmenthasbeenmadeintheaccounts.

44. Litigations:TheGroupissubjecttolegalproceedingsandclaims,intheordinarycourseofbusiness.TheCompany’sManagementdoesnotreasonablyexpectthattheselegalactions,whenultimatelyconcludedanddetermined,willhavematerialandadverseeffectontheCompany’sresultsofoperation.



Details of material litigations as on 31 March 2018

M/s.VigilMarineServicesin2004raisedclaimstowardsAgencyCommissionpayableforwinningordersforATCOTugs.Thearbitrationproceedingscommencedon10Oct2004.Examinationandcrossexaminationofwitnessescompletedandpostedthematterforargumentson01and02Feb2014.TheArbitratorcompletedtheproceedingsandpassedhisawarddirectingtheCompanytopaycommissiontoM/sVigilMarineServicesattherateof5%oftheATCOcontractvalueofUSDollar18.25Millionwithinterest@8%perannum.AggrievedonthisCSLfiledOriginalSuitNo187/2016beforeSubCourt,Ernakulamandobtainedaninterimorderstayingexecutionoftheaward.”

45. CorporateSocialResponsibility(CSR):Aspersection135oftheCompaniesAct2013,CSRcommitteehasbeenformedby theCompany.TheareasofCSRactivity includesHealthCare,Education,SocialEmpowerment, etc., and thosespecifiedinScheduleVIIoftheCompaniesAct2013.TheutilisationofCSRfundsaredonethroughdirectspendingaspertherecommendationsofCSRcommittee.Detailsofamountrequiredtobespentandtheamountutilisedaregivenbelow:

(a)GrossamountrequiredtobespentbytheCSLduringtheperiodendedMarch31,2018 ₹853.75lakhs(b)Amountspentduringtheyear ₹857.08lakhs (`inlakhs)

Particulars In cash Yet to be paid in cash Total

(i)Construction/acquisitionofanyasset 611.03 - 611.03

(ii)Onpurposesotherthan(i)above 246.05 - 246.05

46.RelatedPartydisclosureasperIndAS24


2017-18Shri.MadhuSNairChairman&ManagingDirector KeyManagerialPersonnel

Shri.PaulRanjanDDirector(Finance)&ChiefFinancialOfficer KeyManagerialPersonnel

Shri. Sunny Thomas Director(Technical) KeyManagerialPersonnel

Shri.SureshBabuNVDirector(Operations) KeyManagerialPersonnel

ShriBarunMitra(upto17/04/2017)OfficialPartTime(Nominee)Director,GovernmentofIndia KeyManagerialPersonnel

ShriPravirKrishna(from17/04/2017to04/10/2017)OfficialPartTime(Nominee)Director,GovernmentofIndia KeyManagerialPersonnel

ShriSatinderPalSingh(from04/10/2017)OfficialPartTime(Nominee)Director,GovernmentofIndia KeyManagerialPersonnel

ShriEliasGeorgeOfficialPartTime(Nominee)Director,GovernmentofKerala KeyManagerialPersonnel

Smt.RoopaShekharRaiNonOfficialPartTime(Independent)Director KeyManagerialPersonnel

ShriRadhakrishnaMenonNonOfficialPartTime(Independent)Director KeyManagerialPersonnel

ShriKrishnaDasENonOfficialPartTime(Independent)Director KeyManagerialPersonnel




2017-18

ShriJijiThomson(from15/07/2017)NonOfficialPartTime(Independent)Director KeyManagerialPersonnel

ShriPradiptaBanerjee(from15/07/2017)NonOfficialPartTime(Independent)Director KeyManagerialPersonnel

ShriNandaKumaranPuthezhath(from15/07/2017)NonOfficialPartTime(Independent)Director KeyManagerialPersonnel

Shri.SBalajiArunkumar(from23/10/2017)Director,HCSL KeyManagerialPersonnel

Smt V KalaCompany Secretary KeyManagerialPersonnel

Natureoftransaction-RemunerationtoKeyManagerialPerson(`inlakhs)


Shorttermbenefit 142.20

PostemploymentBenefit 17.11

Total 159.31

Natureoftransaction-Loans*(`inlakhs)

Name of Related PartyOpening


Loans/ advances

Taken during 2017-18

Repayment


Interest accrued as on

31/03/18

MADHUSNAIR 0.90 1.54 1.53 0.91 0.00

PAULRANJAND 1.04 1.38 1.43 0.99 0.00

SUNNYTHOMAS 0.96 0.82 0.96 0.82 0.00

SURESHBABUNV 3.72 1.33 4.10 0.95 0.00

KALAV 0.79 1.09 1.11 0.77 0.00



Natureoftransaction-SittingFeetoIndependentDirectors(`inlakhs)

Name of the meeting Roopa Shekhar Rai

Krishna Das E

Radhakrishna Menon

Jiji Thomson

Nandakumaran Puthezhath

Pradipta Banerji

BoardMeeting 1.50 1.35 1.50 0.90 0.90 0.75

AuditCommittee 0.00 0.90 0.90 0.00 0.45 0.00

Corporate Social Responsibility 0.90 0.00 0.90 0.00 0.00 0.00

NominationandRemuneration Committee 0.45 0.45 0.00 0.00 0.00 0.00

ContractandCapexCommittee 0.00 0.00 0.00 0.15 0.15 0.00

Totalpaymentfor2017-18 2.85 2.70 3.30 1.05 1.50 0.75

Natureoftransaction-Transactionwithotherrelatedparties Transactions with Government and Government relatedentitiesbytheparentcompany.

AsCSLisaGovernmentcompanyunderthecontrolofMinistryofShipping(MoS),thecompanyhasavailedexemptionfromdetaileddisclosurespreparedunderIndAS24withrespecttorelatedpartytransactionswithGovernmentandGovernmentrelatedentities.

However,asrequiredunderIndAS24,followingaretheindividuvallysignificanttransactions:

Particulars As at 31.03.2018(` in Lakhs)

AmountpayabletoGovernmentofIndia 235.40

Amountpaidasdividendduringtheyear 10161.21

InthecaseofsubsidiarycompanysharesissuedforconsiderationotherthancashtoM/sHDPEL 572.00

Inadditionto theabove,around98%of thecompanies turnoverand100% (approx)of trade receivablesandcustomeradvanceiswithrespecttoGovernmentandGovernmentrelatedentities.

47.FINANCIALINSTRUMENTS

The fairvalue hierarchy is based on inputs tovaluation techniques that are used tomeasure fairvalue that are eitherobservableorunobservableandconsistofthefollowingthreelevels:

LevelIinputsarequotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilitiesthattheentitycanaccessatthemeasurementdate.

LevelIIinputsareinputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly.

LevelIIIinputsareunobservableinputsfortheassetorliability.

Thefollowingtablesummarisesfinancialassetsandliabilitiesmeasuredatfairvalueonarecurringbasisandfinancialassetsthatarenotmeasuredatfairvalueonarecurringbasis(butfairvaluedisclosuresarerequired)



As at 31.03.2018(` in Lakhs)

Financial Assets NonCurrent

(i)Investments 9.18 LevelIII(ii)Loans 147.77 LevelII

Current(i)Investments 0.16 LevelI(ii)TradeReceivables 58,012.76 LevelII(iii)Cash&Cashequivalents 80,698.75 LevelII(iv)BankBalancesotherthan(iii) 269,840.19 LevelII(v)Loans 38.14 LevelII(vi)Others 26,084.73 LevelII

Total Financial Assets 434,831.68 FinancialLiabilitiesNonCurrent

(i)Borrowings 12,300.00 LevelI(ii)Otherfinancialliabilities 261.22 LevelII

Current(i)TradePayables 27,382.97 LevelII(ii)Otherfinancialliabilities 11,737.44 LevelII

Total Financial Liabilities 51,681.63

Note:

1. Theinvestmentsinequityinstrumentsarenotheldfortrading.Instead,theyareheldformediumorlongtermstrategicpurpose.Upon the application of IndAS 109, theCompany has chosen to designate these investments in equityinstrumentsasatFVTOCIasthedirectorsbelievethatthisprovidesamoremeaningfulpresentationofmediumorlongtermstrategicinvestments,thanreflectingchangesinfairvalueimmediatelyinprofitorloss.

Investmentsincludedinlevel3offairvaluehierarchyhavebeenvaluedusingthecostapproachtoarriveattheirfairvalue.Thecostofunquotedinvestmentsapproximatethefairvaluebecausethereisawiderangeofpossiblefairvaluemeasurementsandthecostrepresentsestimateoffairvaluewithinthatrange.

TherewerenotransfersbetweenLevel1and2intheperiod.

2. Loans,Borrowingsareatthemarketratesandthereforethecarryingvalueisthefairvalue.

3. Thecarryingamountoftradereceivables,tradeandotherpayablesandshorttermloansareconsideredtobethesameastheirfairvalueduetotheirshorttermnature.

Differencebetweencarryingamountsandfairvaluesofbankdeposits,otherfinancialassets,otherfinancialliabilitiesandborrowingssubsequentlymeasuredatamortisedcostisnotsignificantineachoftheyearspresented.



FinancialInstrumentsbycategory(`inlakhs)

31st March 2018

FVTPL FVTOCI Amortised Cost

Financial AssetsInvestments(Non-Current) -Equityinstruments 9.18

Investments(Current) -MutualFunds 0.16

Tradereceivables 58,012.76

Cash&Cashequivalents 350,538.94

OtherFinancialAssets 26,270.64

Total Financial Assets 0.16 9.18 434,822.34


Borrowings 12,300.00

Tradepayables 27,382.97

CapitalcreditorsOtherfinancialliabilties 11,998.66

Total Financial Liabilities 51,681.63



48.FinancialRiskManagementPolicy

Financial Risk Management Objective and Policies:

TheCompany’s principal financial liabilities, other than derivatives, comprise of loans and borrowings, trade and otherpayablesandadvancesfromcustomers.ThemainpurposeofthesefinancialliabilitiesistofinancetheCompany’soperations,projectsunderimplementationandtoprovideguaranteestosupportitsoperations.TheCompany’sprincipalfinancialassetsincludeInvestment,loansandadvances,tradeandotherreceivablesandcashandbankbalancesthatderivedirectlyfromitsoperations.TheCompany isexposedtomarketrisk,creditriskand liquidityrisk.TheCompany’sseniormanagementoverseesthemanagementoftheserisks.AllderivativeactivitiesforriskmanagementpurposesarecarriedoutbyunderthesupervisionoftheForexRiskManagementCommitteebyassigningnecessaryresources.ItistheCompany’spolicythatnotradinginderivativesforspeculativepurposesmaybeundertaken.TheBoardofDirectorsreviewsandagreespoliciesformanagingeachoftheserisks,whicharesummarisedbelow.

Market Risk

Marketriskistheriskthatthefairvalueoffuturecashflowsoffinancialassetswillfluctuatebecauseofchangesinmarketprices.Marketriskcomprisesthreetypesofrisk:interestraterisk,currencyriskandotherpricerisk,suchasequitypriceriskandcommodityrisk.FinancialAssetsaffectedbymarketriskincludeloansandborrowings,depositsandderivativefinancialinstruments.

Interest Rate Risk

Interestrateriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarket interestrates.TheCompany’sexposuretotheriskofchanges inmarket interestratesrelatesprimarilytotheCompany’slong-termdebtobligationswithfloatinginterestrates.

Foreign Currency Risk

Foreigncurrencyriskistheriskthatthefairvalueorfuturecashflowsofanexposurewillfluctuatebecauseofchangesinforeignexchangerates.TheCompany’sexposuretotheriskofchangesinforeignexchangeratesrelatesprimarilytotheCompany’soperatingactivities(whenrevenueorexpenseisdenominatedinaforeigncurrency).

Foreigncurrencyriskofthecompanyismanagedthroughaproperlydocumentedriskmanagementpolicyapprovedbytheboard.

Commodity Price Risk

TheCompanyisaffectedbythepricevolatilityofcertaincommodities.Itsoperatingactivitiesrequirethepurchaseofsteel,majormachineries,equipmentsetc.Therefore,theCompanyplansitspurchasescloselytooptimisetheprice.

Credit Risk

Creditriskistheriskthatacounterpartywillnotmeetitsobligationsunderafinancialinstrumentorcustomercontract,leadingtoafinancialloss.TheCompanyisexposedtocreditriskfromitsoperatingactivities(primarilytradereceivablesandadvancestosuppliers)andfromitsfinancingactivities,includingdepositswithbanksandfinancialinstitutions,foreignexchangetransactionsandotherfinancialinstruments.



49.Leasearrangements&Guaranteedamount(`inlakhs)


a)Premisestakenonoperatinglease:

TheCompanyhasoperatingleasesforfacilityatInternationalShipRepairFacility(ISRF).TheseleasearrangementswithCochinPortTrust(CoPT)isfor30years,whichisnon-cancellableleases.

Withrespecttonon-cancellableoperatinglease,thefutureminimumleasepaymentasatBalanceSheetdateisasunder:

InthecaseofHCSLhasoperatingleasesforfacilityatNazirgungeandSalkiafacilitiesTheseleasearrangementswithHooghlyDocks&Portswithrespecttonon-cancellableoperatinglease,thefutureminimumleasepaymentasatBalanceSheetdateisasunder:EngineersLtdarefor60years,whichisnon-cancellableleases.

b)Guaranteedamount:

TheamountwhichCSLhasundertakentopaytoCochinPortTrustduringthecontractperiodof30years.

Withrespecttonon-cancellableoperatinglease,thefutureminimumleasepaymentandGuaranteeamountasatBalanceSheetdateisasunder:

Foraperiodnotlaterthanoneyear 646.55

Foraperiodlaterthanoneyearandnotlaterthanfiveyears 3693.80

Foraperiodlaterthanfiveyears 68406.60



50.SegmentReporting

The Company has identified twomajor operating segments viz, Shipbuilding and Repair of ships/ offshore structures.Segmentwiseanalysishasbeenmadeontheabovebasisandamountsallocatedonareasonablebasis.

(`inlakhs)


SegmentAssetsShipbuilding 231887.20Ship Repair 168349.50Others 147232.63Total 547469.33SegmentLiabilityShipbuilding 131092.54Ship Repair 36514.61Others 53752.51Total 221359.66External SalesShipbuilding 173185.70Ship Repair 62326.63Unallocated 3482.41Total 238994.74

(`inlakhs)


InterestIncome 15440.04UnallocatedTotal RevenueShipbuilding 173185.70Ship Repair 62326.63Unallocated 18922.45Total 254434.78Accretion(-)/DecretiontoWorkinprogressShipbuilding 1002.26Ship Repair (3512.67)Total (2510.39)SegmentResultShipbuilding 41471.88Ship Repair 13145.75Unallocated 6947.54Total 61565.17

TheCompanyhastwomajorbusinesssegments–“ShipBuilding”and“ShipRepair”.RevenueunderShipbuildingincludesRs.144334.95lakhs(Previousyear:Rs.131504.38lakhs)fromoneCustomers(Previousyear:oneCustomer)havingmorethan10%revenueofthetotalrevenue.AndforShiprepair,revenueincludesRs.40014.22lakhs(Previousyear:Rs.38073.82lakhs)fromonecustomers(Previousyear:oneCustomer)havingmorethan10%revenueofthetotalrevenue.



51.CapitalManagement

Thecompany'sobjectivewhenmanagingcapitalaretosafeguardtheirabilitytocontinueasagoingconcernsothattheycancontinuetoprovidereturnsforshareholdersandmaintainanoptimalcapitalstructuretoreducethecostofcapital.

Forthepurposeofcapitalmanagement,capitalincludesissuedequitycapitalandallotherequityreservesattributabletotheequityholdersoftheparent.Thecompanyisnotsubjecttoanyexternallyimposedcapitalrequirements.

Tomaintainoradjustthecapitalstructure,thecompanymayadjustthedividendpaymenttoshareholders,returnoncapitaltoshareholdersorissuenewshares.Thecompanymonitorscapitalusingagearingratio,whichisnetdebtdividedbytotalequity.TheCompanyincludeswithinnetdebt,interestbearingloansandborrowings(includingbonds).

(`inlakhs)


Longtermborrowings 12300.00NetDebt 12300.00EquityShareCapital 13593.60Otherequity 311953.71TotalEquity 325547.31GearingRatio 3.78%

Nochangesweremadeintheobjectives,policiesorprocessesformanagingcapitalduringtheyearsendedMarch31,2018.

52.DetailsofSubsidiaries

Sl No Name Relationship Nature of activity

Principal place of business

As at 31st March 2018

Proportionate ownership

in %

1 HooghlyCochinShipyardLimited Subsidiary Constructionofvesselsofvarioustypesandrepairs

thereof India 74%



53.Summarisedfinancialinformationofsubsidiarycompanyisasfollows:

The amounts disclosed for subsidiary are before inter-company eliminations(`inlakhs)

Summarised Balancesheet 2017-18

Non-currentassets 623.68

Current assets 1556.86

Total Assets 2180.54

Currentliabilities 17.61

Total Liabilities 17.61

Net Assets 2162.93

Accumulated NCI 562.36

Summarised Statement of Profit & Loss 2017-18

Revenue 0.00

Profit/(Loss)fortheyear (37.07)

OtherComprehensiveIncome 0.00

Total Comprehensive Income (37.07)

Profit/(Loss) attributable to NCI (9.64)

Summarised Cashflows 2017-18

Cashflowsfromoperatingactivites (110.47)

Cashflowsfrominvestingactivities (12.84)

Cashflowsfromfinancingactivities 1628.00

Netincrease/decreaseincashandcashequivalents 1504.69



54.INFORMATIONREQUIREDBYSCHEDULEIIIOFTHECOMPANIESACT2013,WITHRESPECTTOCONDOLIDATEDFINANCIALSTATEMENTS

Networth Profitor(Loss) OtherComprehensiveIncome

Total Comprehensive Income

Name of the entity in the

group

Ownership in % As at March 31,

2018

Propor-tionate Share

As % of Consoli-

dated NetWorth

Share in Profit/ (Loss)

As % of Consol-idated Profit/ (Loss)

Share in Other

Compre-hensive Income

As % of Con-solidated

Other Com-prehensive

Income

Share in Total Com-prehensive

Income

As % of Consolidated

Total Com-rpehensive

income

CochinShipyardLimited 100.00% 325586.69 99.84% 39675.01 100.12% -134.08 100.00% 39540.93 100.12%

SubsidaryHooghlyCochinShipyardLimited 74 1600.57 0.49% -27.43 -0.07% 0 0 (27.43) -0.07%

Non-controllinginterest 562.36 0.17% -9.64 -0.02% 0 0 (9.64) -0.02%

Consolidationadjustments (1639.95) -0.50% -11.95 -0.03% 0 0 (11.95) -0.03%

GrandTotal 326109.67 100.00% 39625.99 100.00% -134.08 100.00% 39491.91 100.00%

55a. Inthecaseofcontracts/sub-contracts,whereverfinalbillsarenotsubmittedbythecontractorsfortheworkdoneasatthecloseoftheyear,liabilityisestimatedandprovidedbasedontheworkdone.

55b. BalanceshownunderTradeReceivables,TradePayables,loans,depositsandclaimsaresubjecttoconfirmationandconsequentreconciliation,ifany

56. TheCompanyhasmadeadequateprovisiontowardsmaterialforeseeable losseswhereverrequired, inrespectoflongtermcontracts.TheCompanydonothaveanylongtermderivativecontractsforwhichtherewereanymaterialforeseeablelosses.

57. Figuresinbracketsdenotenegativefigures.

58. Previousyearfigureshavebeen regrouped and classifiedwherevernecessary to conform to the currentyearpresentation.






Statement pursuant to first proviso to sub-section (3) of section 129 of the Companies Act, 2013, read with rule 5 of Companies (Accounts) Rules, 2014 in the prescribed form AOC-1 relating to subsidiaries or associate companies or joint ventures

Part A - Subsidiary1. Nameofthesubsidiary HooghlyCochinShipyardLimited2. Thedatesincewhensubsidiarywasincorporated* October23,20173. Reportingperiodforthesubsidiaryconcerned April01,2017toMarch31,20184. Reportingcurrency INR

5. ExchangerateasonthelastdateoftherelevantFinancialyearinthecaseofforeignsubsidiaries NotApplicable

6. Share capital ` 2,200.00Lakhs(2,20,00,000equitysharesof ` 10each)

7. Reservesandsurplus `(37.07lakhs)8. Total assets ` 2,180.54Lakhs9. TotalLiabilities ` 2,180.54Lakhs10. Investments ` 1,490.00Lakhs11. Turnover ` 18.57Lakhs12. Profitbeforetaxation ` (49.92)Lakhs13. Provisionfortaxation ` (12.85)Lakhs14. Profitaftertaxation ` (37.07)Lakhs15. ProposedDividend Nil16. Percentageofshareholding 74%

Part B - Joint Venture1. NameofJointVenture HooghlyCochinShipyardLimited2. LatestauditedBalanceSheetDate March31,20183. DateonwhichtheJointVenturewasincorporated* October23,2017

4. Percentage of shares of Joint Venture held by thecompanyontheyearend 74%

5. No.ofsharesofJointVentureheldbythecompanyontheyearend 1,62,80,000

6. AmountofInvestmentinJointVenture ` 1,628.00Lakhs7. Descriptionofhowthereissignificantinfluence MajorshareholderofHooghlyCochinShipyardLimited8. Reasonwhythejointventureisnotconsolidated N.A.

9. Net worth attributable to shareholding as per latestauditedBalanceSheet ` 1,600.56Lakhs

10.ProfitorLossfortheyeari.ConsideredinConsolidation ` (37.07)lakhsii.NotConsideredinConsolidation -

Notes:

1.HooghlyCochinShipyardLimitedisyettocommenceitsoperations.

* HooghlyCochinShipyardLimitedhadbeen incorporatedas aJointVentureCompanybetweenCochinShipyardLimitedandHooghlyDock&PortEngineersLimited,inwhichCochinShipyardLimitedistheHoldingCompanywith74%ofthetotalshareholding.

Form AOC-1

COCHIN SHIPYARD LIMITEDAdministrative Building, Cochin Shipyard Premises, Perumanoor, Kochi, Kerala, India - 682015.Ph: +91 484-2501200. Fax: + 91 484-2370897website: www.cochinshipyard.com

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sec/48/2017 -63 september 01,2018 -rr-o-,--...be the market leader in india for ship repairs,...

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