Annual Report FY 2010-11 - Pipavav Shipyard

Annual Report 2010-11
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DIRECTORS’ REPORT
Dear Members,
Your Directors have pleasure in presenting the 14 th Annual Report on business and operations of the Company together with
audited accounts for the financial year ended March 31, 2011.
1. Financial Performance
(Rs. in crore)
Particulars 2010-11 2009-10
(a) Income from Operations 859.93 629.38
(b) Other Income 63.36 67.51
(c) Total Income 923.29 696.89
(d) Profit/ (Loss) before Interest, Depreciation and Tax 215.90 60.88
(e) Depreciation 48.73 36.55
(f) Interest 119.01 72.99
(g) Profit before Tax 48.16 (48.66)
(h) Less: Provision for Taxation 8.39 0.16
(i) Profit/ (Loss) after Tax 39.77 (48.82)
2. Dividend
Considering the future growth and investment plans of the Company, no dividend has been recommended by the Board
of Directors.
3. Operations
During the year under review, your Company has recorded total income of Rs. 923.29 crore, showing an increase of
32.49% as compared to the income of Rs. 696.89 crore during the previous financial year. Your Company earned profit
before tax of Rs. 48.16 crore, as against loss of Rs. 48.66 crore for previous year.
During the year the Company completed construction of its two new built 74,500 DWT Panamax Vessels.
The detailed information on all business activities of the Company is provided in the Management Discussion and Analysis
Report.
4. Convertible Warrants
Pursuant to the special resolution passed by the Members of the Company at the Extraordinary General Meeting held on
September 7, 2010, your Company has issued 2,52,21,612 convertible Warrants on preferential basis to SKIL Infrastructure
Limited, promoters of the Company, at a price of Rs. 99.10, for raising funds to meet the capex requirement of the Company
and for general corporate purposes. Each warrant is convertible into one fully paid-up equity share of face value of Rs.10/each,
at any time prior to 18 months from the date of allotment of warrants.
5. Subsidiaries
Your Company has one wholly owned subsidiary namely E Complex Private Limited (“ECPL”). This subsidiary is in the
business of development of Special Economic Zones (“SEZ”). ECPL has developed a sector specific SEZ for engineering
goods/ sector at Village Rampara II, District Amreli, in the State of Gujarat.
During the financial year 2010-11, ECPL has earned revenue of Rs. 11.97 crore and posted net profit (after tax) of
Rs. 3.96 crore.
General Exemption: The Ministry of Corporate Affairs has granted general exemption vide its General Circular No. 2/ 2011
dated February 8, 2011 under Section 212(8) of the Companies Act, 1956 (“the Act”) to companies from not attaching
the accounts and related documents of subsidiaries in their Annual Report, subject to fulfillment of certain conditions
prescribed therein. The Company has complied with all the conditions mentioned in the said circular. Accordingly, the
Balance Sheet, Profit & Loss Account, Directors’ Report and Auditor’s Report of its subsidiary company have not been
attached to this Report.
Pursuant to Accounting Standard 21 issued by the Institute of Chartered Accountants of India, Consolidated Financial
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Statements presented by the Company include the financial information of its subsidiary company. A statement of key
financials of the subsidiary company is also included in this Annual Report.
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