Annual Report FY 2010-11 - Pipavav Shipyard

Pipavav Defence and Offshore
Engineering Company Limited
3. The Company is constructing its integrated shipyard projects comprising two units, viz., Special Economic Zone (SEZ) and
Export Oriented Unit (EOU), situated at Amreli in Gujarat. Certain facilities at the above mentioned units have already been
commissioned and others are still under construction / commencement. The Project Development Expenditure (included
under Capital Work-in-Progress) is as under:
(Rs. in Lacs)
Particulars of Expenses 2010 - 2011 2009 – 2010
Opening Balance
Add:
38,316.49 55,256.87
Rent 96.61 150.55
Salaries Wages and Allowances 817.82 983.46
Contribution to PF and Other Fund 14.91 34.29
Welfare and Other Amenities 36.02 54.54
Legal, Professional and Consultancy Charges 172.27 1,107.80
Conveyance, Travelling and Vehicle Expenses 158.11 237.42
Rates and Taxes 56.77 876.34
Insurance 77.85 60.31
Communication Expenses 16.50 30.31
Repairs & Maintenance – Building 29.37 -
Repairs & Maintenance – Others 82.35 79.96
Miscellaneous Expenditure 156.59 184.13
Interest on Fixed Loans 7,319.88 7,416.52
Interest on Debentures 464.54 -
Interest Others - 1,168.76
Bank and Financial Charges 125.50 697.46
Sub Total -
Less :
47,941.58 68,338.72
Miscellaneous Income - 1.81
Balances Written Back 145.59 52.68
CST Recoverable - 56.77
Sub Total -
Less:
145.59 111.26
Allocated to Fixed Assets 4,482.46 29,910.97
Closing Balance 43,313.53 38,316.49
4. As approved by the Shareholders in Extra-Ordinary General Meeting held on September 07, 2010, the Company has
issued 2,52,21,612 Convertible Share Warrants to SKIL Infrastructure Limited, the Promoters of the Company, having a
currency period of eighteen months from the date of issue of Share Warrant i.e. September 22, 2010. Each Share Warrant
provides the holder an option to convert it into one fully paid up Equity Share of Rs. 10/- each at an exercise price of Rs.
99.10 per equity share. The company has received Rs. 6,254.96 Lacs upto March 31, 2011 against the above Convertible
Share Warrants. No Share Warrants have been converted during the year.
5. During the year the company has decided to value the inventories of its major raw materials viz. steel plates, profiles &
equipments on Specific Identification Method as against Weighted Average Method. This change in method of valuation
has resulted into inventory of raw materials higher by Rs.179.11 Lacs and consumption of raw materials lower by the equal
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amount & the profit for the year lower by Rs 75.40 Lacs.
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