Dear Shareholders,
Your Board of Directors is delighted to present the Annual Report on
the performance of your Company and its Audited Financial Statements for the Financial
Year ended 31st March 2024, along with the Reports of the Statutory Auditors
and the Comptroller & Auditor General of India (C&AG) thereon.
Directors' Report
FINANCIAL PERFORMANCE
FINANCIAL PERFORMANCE
The financial performance of your Company has been exceptional during
the financial year 2023-24. During the year, the Company has registered an improvement in
Revenue from Operation by 40%, by registering 3,592.64 crore against 2,561.15 crore in the
previous year. Furthermore, EBIDTA and PAT experienced robust growth, increasing by 52%
and 57%, respectively, underscoring our strong operational performance and profitability.
The financial highlights for the financial year 2023-24 and 2022-23 are
summarized below: ( in crore)
Particulars |
2023-24 |
2022-23 |
Value of Production |
3,588.46 |
2,547.84 |
Revenue from Operation |
3,592.64 |
2,561.15 |
Profit Before Depreciation, Interest and Tax |
533.74 |
350.86 |
Finance Cost |
11.49 |
6.48 |
Depreciation |
41.33 |
39.17 |
Profit Before Tax |
480.92 |
305.22 |
Provision for Tax |
123.65 |
77.09 |
Profit After Tax |
357.27 |
228.12 |
Other Comprehensive Income (Net of Tax) |
1.10 |
0.54 |
Total Comprehensive Income |
358.37 |
228.67 |
The financial position of your Company as on 31 March
2024 and 31 March 2023 is appended below: ( in crore)
Particular |
As on 31 March 24 |
As on 31 March 23 |
Capital Employed |
1,673.44 |
1,413.82 |
Gross Block |
754.21 |
729.70 |
Net Block |
492.57 |
507.61 |
Working Capital |
989.43 |
724.97 |
Net Worth |
1,673.44 |
1,413.82 |
Value Added |
1,335.21 |
953.81 |
Value of Production |
3,588.46 |
2,547.84 |
Profit Before Tax |
480.92 |
305.22 |
Ratios: (%) |
|
|
Profit before interest and tax: Capital Employed (%) |
29.43 |
22.05 |
Profit after tax: Net Worth (%) |
21.35 |
16.14 |
Gross Profit: Capital Employed (%) |
31.89 |
24.82 |
Profit Before Tax: Value of Production (%) |
13.40 |
11.98 |
Value of Production: Capital Employed (%) |
214.44 |
180.21 |
Current Ratio (In times) |
1.12 |
1.08 |
Return on Equity (%) |
23.14 |
17.08 |
Trade Receivables Turnover Ratio (In times) |
29.32 |
25.33 |
Trade Payable Turnover Ratio (In times) |
3.73 |
4.78 |
Value of Production
Your company has achieved a record Value of Production
(VoP') of
3,588.46 crore as against 2,547.84 crore during the previous year. The
comparative VoP for the three Divisions of the Company are as follows: ( in crore)
Year |
Ship Division |
Engineering Division |
Engine Division |
Misc. |
Total |
2023-24 |
3,373.22 |
167.17 |
47.90 |
0.17 |
3,588.46 |
2022-23 |
2,454.89 |
69.82 |
22.97 |
0.16 |
2,547.84 |
Net Worth
During the year under review, your Company reported a Net worth of
1,673.44 crore as on 31 March 2024 against 1,413.82 crore as reported on 31 March 2023.
Value Addition
The Value added during the financial year under review was 1,335.21
crore as against 953.81 crore during the previous year. The Value added per employee rose
to 80.97 lakh compared to 54.60 lakh in the previous year.
Appropriations
Considering the financial performance of your Company in the year
2023-24, the Board of Directors are pleased to recommend the following appropriations from
the disposable surplus: ( in crore)
Profit After Tax |
357.27 |
Other Comprehensive income for the year, Net of Tax |
1.10 |
Total Comprehensive income for the period |
358.37 |
Less: |
|
Final Dividend of FY 2023-24 on the Paid-up Capital |
8.02 |
Interim Dividend of FY 2023-24 |
90.73 |
Balance retained in Statement of Profit & Loss |
259.62 |
Contribution to the Exchequer
During the financial year 2023-24, your Company contributed 53.41 crore
to the National Exchequer by way of Income Tax and GST.
Dividend Distribution Policy
Pursuant to Regulation 43A of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI
Listing Regulations"), the Board of Directors of the
Company has formulated a Dividend Distribution Policy keeping in view
the provisions of SEBI Listing Regulations, the Companies Act, 2013 and Guidelines issued
by the Department of Public Enterprises (DPE) and the Department of Investment and Public
Asset Management (DIPAM). The Policy is available on the Company's website at
https:// grse.in/wp-content/uploads/2022/04/GRSE-Dividend-Distribution-Policy.pdf.
Dividend
Pursuant to the approval of the Board of Directors on 13 February 2024,
your Company has paid an interim dividend of 7.92/- per equity share of face value of 10/-
each to Shareholders who were on the Register of Members as on 23 February 2024, being the
record date fixed for this purpose. Further, the Board, at its meeting held on 22 May 2024
has recommended final dividend of 1.44/- per equity share of face value of 10/- each for
the financial year 2023-24. Thus, the total dividend for the financial year 2023-24, if
approved by the Shareholders, would be 9.36/- per equity share.
MOU Rating
Your Company achieved "Excellent" rating with a score of 90
out of 100 for FY 2022-23 under MoU Evaluation by the Department of Public Enterprises.
Further, on the basis of actual achievements vis-?-vis parameters laid down in the MoU
signed with the Government of India, your Company is expected to maintain
"Excellent" rating once again for its performance during the FY 2023-24.
Directors' Report
PERFORMANCE OF THE COMPANY DURING THE YEAR
A. SHIPBUILDING
The Company has achieved a total shipbuilding income of 3,373.22 crore
during 2023-24 as against 2,454.89 crore in 2022-23. Notably, the Company delivered a
Survey Vessel (Large) to Indian Navy on 04 Dec 2023, which was commissioned on 03 Feb 2024
at Vizag. Further, the details of vessels under construction in your Company as on 31 Mar
2024 are as follows:
Project / Vessel Type |
No. of Vessels |
Project P-17A for Indian Navy |
03 |
Survey Vessel (Large) for Indian Navy |
03 |
ASW-SWC for Indian Navy |
08 |
NG OPV for Indian Navy |
04 |
Total Ships |
18 |
Patrol Boats for Govt. of Bangladesh |
6 |
NG Ferry for Govt of West Bengal |
1 |
Technical Acceptance of NG Ferry for Govt. of West Bengal was
successfully completed on 22 Mar 24. The Shipyard also completed major milestones on
various projects during the financial year as follows:
Commissioning
Sl. No. |
Ship |
Yard |
Date |
(a) |
Survey Vessel (Large) |
3025 |
03 Feb 2024 |
Delivery
Sl. No. |
Ship |
Yard |
Date |
(a) |
Survey Vessel (Large) |
3025 |
04 Dec 2023 |
Launching
Sl. No. Ship |
Yard |
Date |
(a) 3rd Project P-17A |
3024 |
17 Aug 2023 |
(b) 3rd Anti-Submarine Warfare Shallow Water Craft
(ASW SWC) |
3030 |
13 Jun 2023 |
(c) 4th Survey Vessel Large (SVL) |
3028 |
13 Jun 2023 |
(d) 4th Anti-Submarine Warfare Shallow Water Craft
(ASW SWC) |
3031 |
16 Nov 2023 |
(e) 5th Anti-Submarine Warfare Shallow Water Craft
(ASW SWC) |
3033 |
13 Mar 2024 |
(f) 6th Anti-Submarine Warfare Shallow Water Craft
(ASW SWC) |
3036 |
13 Mar 2024 |
(g) Next Generation Electric Ferry |
2120 |
11 Jan 2024 |
Keel Laying
Sl. No. |
Ship |
Yard |
Date |
(a) |
7th Anti-Submarine Warfare
Shallow Water Craft (ASW SWC) |
3032 |
13 Jun 2023 |
Start Production
Sl. No. Ship |
Yard |
Date |
(a) 8th Anti-Submarine Warfare Shallow Water Craft
(ASW SWC) |
3034 |
01 May 2023 |
(b) 1st Next Generation Offshore Patrol Vessel
(NGOPV) |
3037 |
25 Sep 2023 |
(c) 2nd Next Generation Offshore Patrol Vessel
(NGOPV) |
3038 |
25 Sep 2023 |
(e) 3rd Next Generation Offshore Patrol Vessel
(NGOPV) |
3039 |
24 Feb 2024 |
(d) 4th Next Generation Offshore Patrol Vessel
(NGOPV) |
3040 |
24 Feb 2024 |
B. SHIP REPAIR
The Ship Repair Division of your Company has effectively utilised all
the three dry-docks taken from Syama Prasad Mukherjee Port (SPMK), Kolkata and
successfully completed docking of 18 Ships and Crafts at SPMK, Kolkata and Okha during the
FY 2023-24. Additionally, it successfully conducted refits for 12 ships and Crafts,
amounting to a total order value of 91.20 crore. The revenue from Ship Repair activities
surged to 92.89 crore in the year 2023-24 from 33.98 crore in the year 2022-23, reflecting
substantial growth and operational efficiency.
C. ENGINEERING DIVISION
The Value of Production (VoP) achieved by the Engineering Division
during the financial year 2023-24 amounted to 167.17 crore in comparison to 69.82 crore in
financial year 2022-23.
Portable Steel Bridge Unit
During the financial year 2023-24, the Bailey Bridge unit has achieved
a Value of Production (VoP) totalling 140.24 crore, marking a significant increase from
69.30 crore in the previous year. This included the production of 90 bridges totalling
6,750 MT, compared to 78 bridges totalling 5,850 MT in the preceding year.
In addition, the Company exported seven sets of 80-feet single-lane
modular bridges to the Bangladesh Army under DLOC, amounting to
8.92 crore. Furthermore, one set of 120-feet double-lane modular bridge
was delivered to Project Dantak (BRO) in Bhutan during the fiscal year 2023-24.
During the year, your Company swiftly delivered 12 sets of various
spans of Bailey Bridges to PWD, Himachal Pradesh in a short span of only two months to
restore immediate and critical geo-connectivity in the flood affected regions of Himachal
Pradesh.
Your Company also achieved a commendable milestone by delivering 26
sets of double-lane MSBs to BRO under the MoU with DGBR (BRO). Notably, GRSE successfully
launched 25 double-lane MSBs across various projects in remote areas of Arunachal Pradesh
and the Union Territory of Ladakh.
Additionally, the Company delivered three sets of Bailey Suspension
bridges and two sets of 200-feet single-lane modular bridges to Project Swastik (BRO)
under the MoU with DGBR (BRO). These strategic installations significantly contributed to
the restoration of geo-connectivity in flash flood-affected areas in North Sikkim.
Under its R&D initiatives, the Bailey Bridge Unit of your Company
has successfully conducted Load Testing of a 5.30 M Carriageway 200-feet
Single Lane Modular Bridge at Belur, under the supervision of
CSIR-SERC, Chennai. This bridge, a first of its kind in India, complies with the
requirements of IRC: 6 provisions.
Deck Machinery Unit
Deck Machinery Unit of your Company specialises in manufacturing and
supplying various Deck Machinery equipment such as Anchor Capstan, Anchor Windlass,
Mooring Capstan, Dock Capstan, General Purpose Davits, Ammunition Davit, Electric Boat
Davits, Electro-Hydraulic Boat Davits, Survey Motor Boat Davits, Hydrographic Davits,
Oceanographic Winch, Anchor cum General Purpose Winches for beaching operations,
Helicopter Traversing System (Both Rail based and Rail Less type), etc. Also, the unit is
providing product support for all deck machinery equipment under exploitation by the
customers and furnishing spares apart from refurbishment of equipment based on the
requirements of Indian Navy and Indian Coast Guard. In FY 2023-24, the Deck Machinery Unit
achieved a Value of Production (VoP) amounting to 26.93 crore which was 0.52 crore last
year. During the year, total of thirty-four (34) Nos. of different types of deck machinery
equipment have been supplied to various new construction yards and operational ships of
the Indian Navy. The division has achieved certain major firsts to its credit which are
highlighted in the succeeding paragraphs.
Major Evolutions
The Rail Less Helicopter Traversing System (RLHTS) has been
successfully indigenised and proven on twin hangar platform (P15B vessel INS Imphal). This
pioneering achievement is a first of its kind in a Naval platform across the globe with
indigenous Ground Support Equipment (GSE) fabricated suitably for ALH MK-I helicopters.
The success has been noteworthy as the Sea Acceptance Tests (SATs) were completed without
any observations and has earned accolades from the agencies of Indian Navy. Notably, the
Telescopic Helicopter Hangar, complete with hangar doors originally planned for import
from overseas firms, has been designed, developed, manufactured, and validated in-house by
way of Factory Acceptance Trials (FATs) followed by successful trials at harbour and sea
to the satisfaction of Indian Navy. GRSE DKMC takes pride in design, development,
manufacturing and providing product support of the largest shipboard mooring capstan of
15T capacity. A contract for three years has been put in place for providing unhindered
support to this equipment. The development of a 3-ton Deck Crane with telescopic
capabilities, boasting a maximum reach of 13 meters, for the Survey Vessel Large (SVL)
project has been completed successfully. This crane has been validated on the first two
SVL vessels, with installation on the remaining two ships currently in progress.
D. ENGINE DIVISION
The Diesel Engine Plant (DEP) of your Company at Ranchi has achieved
successful completion of Factory Acceptance Trials and delivery of fourteen (14) in number
1 MW Diesel Alternators (DAs) during the year for the P17A project.
DEP Ranchi has also delivered two (02) MTU 4000 series engines to the
Indian Coast Guard following the completion of W6 routines and successful Factory
Acceptance Trials.
The Engine division achieved a notable Value of Production of 47.90
crore during the financial year 2023-24 in comparison to 22.97 crore last year.
Bailey Bridge Components are also being manufactured at DEP unit at
Ranchi, where Bailey Bridge Division of DEP Unit achieved a VoP of approx. 22.56 crore and
production of 1573 MT during the financial year 2023-24.
DEP Ranchi is also executing a running rate contract with NSRY Karwar
for the W5 routines of 4000 Series MTU engines.
ORDER BOOK POSITION
The total order book position of your Company for the three (3)
divisions as on 31 Mar 2024 is as follows: ( in crore)
Sl. No. DIVISION / DEPTS |
Closing order Value as on 31 Mar 2024 |
A Ship Division |
|
Ship (including B&D Spares) |
22,511.12 |
Ship Repair & AMCs |
82.51 |
Total Ship Division |
22,593.63 |
B Engineering Division |
|
Bailey Bridge |
4.16 |
Deck Machinery & Pump |
25.89 |
Total Engineering Division |
30.05 |
C Engine Division |
29.00 |
Total (A+B+C) |
22,652.68 |
NEW INITIATIVES
To foster long-term business growth and embrace new technologies, your
company has taken up the following major initiatives through signing of Memoranda of
Understanding (MoUs) during FY 2023-24: (a) Lloyd's Register Marine and Offshore
India LLP, Mumbai, Maharashtra for collaboration in the Design & Development of
Hydrogen Fuel Cell Ferry.
(b) M/s Syama Prasad Mookerjee Port, Kolkata, West Bengal to design and
construct Green Vessels that meet the specific operational and environmental requirements
of the Port Authority (SMPK).
(c) M/s Border Roads Organization (BRO) for manufacture, supply,
transport, launch and erection of 10 sets of 400 feet span Bailey Suspension Bridges (40T
Single Vehicle) reinforced with Timber Decking and Galvanized Finish.
(d) M/s Steel Authority of India (SAIL) for availability of raw
materials like special grade DMR steel in time for GRSE.
(e) M/s. KONGSBERG Maritime Sweden AB for license production with
localization of the Kongsberg waterjets to support the indigenous content /
Indigenous Assembly of Water Jets. (f) M/s Caterpillar Inc., USA for Transfer of
Technology regarding development of a Medium Speed Marine Diesel Engine 6 MW for
Indian Navy.
(g) Individual License Agreement with M/s Rolls-Royce Solutions GmbH,
88040 Friedrichshafen, Germany, as a part of the Framework License Agreement for Diesel
Engine defining the business relationship, included products, conditions, duties, and
responsibilities of the Parties.
(h) M/s Crawley & Ray (F & E) Pvt. Ltd for collaboration in
design and manufacture of type tested marine valves under the brand name of GRSE.
(i) M/s. Artson Engineering Ltd. Mumbai and M/s. Vishwakarma Salvage
Pvt. Ltd., Porbandar, Gujarat to undertake ship repair / refit and allied activities at
GRSE / GRSE-KPDD / elsewhere in India as ship repair associate.
(j) M/s Syama prasad Mookerjee Port, (SMPK), Kolkata for Establishment
of Portal to provide repair services to vessels calling at ports of Kolkata & Haldia.
(k) Modest Infrastructure Private Limited of the Ultimate Holding
Company V S DEMPO HOLDINGS PVT. LTD., Panaji, Goa for Cooperation in Shipbuilding on
West Coast'.
(l) Naval Group SA, France for Collaboration in design for warship
construction.
(m) Hooghly Cochin Shipyard Ltd. (HCSL), Kolkata, West Bengal for
collaboration in resource utilisation (engineering, procurement) and construction of ships
by GRSE. (n) M/s Seatech Solutions International (S) PTE Ltd. & Shift Clean Solutions
Ltd. and American Bureau of Shipping for collaboration on development and construction of
the 50T BP Electric Tug E-VOLT 50 ("Vessel").
(o) M/s Rudram Infotech, Ahmedabad, Gujarat for the purpose of Business
Development and marketing of GRSE products.
(p) M/s Maritime Tactical Systems Inc., Florida, USA to define the
rights and obligations of the Parties with respect to the use, handling, protection, and
safeguarding of proprietary Information which is disclosed by MARTAC to GRSE.
(q) MoU with Indian Register of Shipping (IRS) for collaboration to
jointly pursue and execute contracts for the development of autonomous and green energy
vessels, leveraging the complementary capabilities of GRSE and IRS.
(r) MoU with Eurotech Pivot Solutions Pvt Ltd., Coimbatore for
collaboration on the Development of Air Cushion Vehicles.
RESEARCH & DEVELOPMENT
Next Generation Electric Ferry: Your Company has developed the
design for a fully electric, battery-operated ferry for passenger transportation in the
inland waters. This 24m long catamaran hull aluminium vessel with FRP superstructure shall
have a max speed of 8 Knots and a capacity to carry up to 150 passengers. This pioneering
effort promotes green technologies in the inland water transportation sector, marking a
significant step towards replacing diesel ferries and reducing environmental pollution.
The Company has successfully built and delivered one vessel to the Government of West
Bengal as a pilot project.
Unmanned Surface Vessel (USV): Your Company has developed a 5m USV
prototype called SWADHEEN'. The potential roles of the USV are bathymetric
survey and mine-hunting. The remote-control capabilities have been successfully
demonstrated, and the prototype is being enhanced further with collision avoidance
capabilities with required payloads for defined potential roles. In September, 2023, GRSE
received an order from NSTL, DRDO for the design and development of USV to communicate
between various submerged vehicles. Your company has also been issued a project sanction
order under Make II project ASV MCM by Indian Navy in Nov 23 for the design and
development of Autonomous Surface Vessel Mine
Counter Measure (ASV MCM) which will play a critical role in securing
maritime territories by effectively countering the threat of sea mines.
Autonomous Underwater Vehicle (AUV): GRSE has developed an
Autonomous Underwater Vehicle of length 2.15m for Mine Counter Measure operations,
Reusable ASW training target, and passive acoustic monitoring. Integration of payloads is
under progress.
Unmanned Aerial Vehicle (UAV): Technology for UAVs (Drones) which
can be successfully launched and recovered by ships at sea is still in a nascent stage.
GRSE in association with M/s Tunga Aerospace is in the process of developing Indigenous
Ship Based Aerial Unmanned Drones (UAV) in the country, which will be of great use to the
Navy, Coast Guard as well as Coastal Police. This UAV is designed to operate seamlessly
offering round-the-clock surveillance capabilities from a ship. One of the key features of
this UAV is its ability to autonomously recover on the ship's deck, further enhancing
its operational efficiency. The UAV will transmit real-time surveillance video feeds to a
ground control station located on the mother ship, allowing for quick and informed
decision-making during missions. With its autonomous capabilities and mission-driven
design, this UAV represents a significant leap in technological innovation for maritime
operations.
MAKE IN INDIA INITIATIVES
Your Company has implemented the "Make in India and
Indigenisation" Policy whereby indigenous vendors are encouraged to quote with
maximum indigenisation content through Licensed production with collaboration, Licensed
production by way of Transfer of Technology (ToT), Co-production, Assembling, Design and
Manufacture in India with ToT. Your Company has developed in-house capabilities to design
& build most modern warships in the country and has achieved over 80% indigenisation
for the recently completed and ongoing shipbuilding projects (Landing Craft Utility (LCU)
Ships, Anti-Submarine Warfare Corvettes, Anti-Submarine Shallow Water Craft (ASW-SWC),
Survey Vessel Large (SVL) and P-17A Stealth Frigate ) for Indian Navy, which is a major
step towards achieving self-reliance in state-of-the-art warship design and construction.
Ministry of Defence through Department of Defence Production (DDP) published 04 Positive
Indigenisation List (PIL) and through Department of Military Affairs (DMA) published 05
PILs respectively for which there would be an embargo on the import beyond the timeline
indicated against them. This is a big step towards self-reliance in defence. This offers a
great opportunity to the Indian defence industry to manufacture these items using own
design and development capabilities to meet the requirements of the Armed Forces. GRSE has
identified total 62 items (37 items from DDP-MoD List & 25 items from DMA-MoD list)
for indigenisation. GRSE has already indigenised 27 items out of 37 items specified in 04
PILs promulgated by MoD-DDP and indigenization of rest 10 items are scheduled to be
completed by year 2027.
GRSE has uploaded 58 items for Public View (37 PIL Items, 17 Non-PIL
items and 4 items proposed for PIL-5 of DDP-MoD) at SRIJAN Defence Portal for
public view, which were earlier imported or indigenous vendors not available. GRSE has
successfully indigenized 35 items of this list (27 are PILs and 08 are non-PILs). GRSE
has identified 17 Non-PIL items and of them 08 Non-PIL items are already indigenised. The
Make-II framework (Industry funded prototype development) was implemented at GRSE on 09
Jul 22. As on date, GRSE has 08 items identified under Make-II project, of which 04 are
non-PIL and 04 are PIL items. 02 non-PIL and 01 PIL items have already been
indigenised, whereas, indigenization / development of rest 05 items scheduled to be
completed by Dec 2027.
With regard to Innovations for Defence Excellence (iDEX), GRSE has
identified 04 iDEX projects, namely, (a) Active Roll Stabilization System (IDEX DISC-05),
(b) AI Enable Welding Helmet (IDEX DISC-06), (c) Implementing Industry 4.0 for shipyard
without Wi-Fi connectivity (IDEX DISC-09), and (d) Heavy Duty Non-Slip Epoxy Wearing
Surface for Modular Steel Bridge Decks (IDEX DISC-10). The contract for manufacturing and
supply of 30 mm Naval Surface Guns worth 248.50 crore for the Ministry of Defence (MoD) /
Indian Navy was signed on 24 May 23 as a step towards indigenisation of weapon system for
Indian Armed Forces Self-reliance in defence manufacturing is a crucial component of
effective defence capability to maintain national sovereignty and achieve military
superiority. As a part of these initiatives, a framework, the "Mission Raksha Gyan
Shakti" was instituted in 2018 by the Ministry of Defence. This impetus from Ministry
has become key driver, stimulating innovation as well as ingenuity in the GRSE ecosystem.
GRSE has filed 143 IPRs (139 IPRs post MRGS launching) out of which
95 IPRs are granted/ registered (15 Patents, 64 Copyrights & 16
Trademarks) as on date. GRSE trained around 1385 personnel (own employees as well as
vendors personnel) with an objective to imbibe technology and innovation driven work
culture. Further, to promote and encourage employees towards innovation "Employee
Innovation Scheme" has been promulgated at the company level in Jan 2019 which
includes monetary and career encouragement benefits.
GRSE Accelerated Innovation Nurturing Scheme 2023 (GAINS 2023):
In pursuance of Make in India' and Start-up India' initiatives of
the Government of India, your company has taken an initiative of identifying and
encouraging development of innovative solutions, as part of the shipyard's technology
development efforts, by leveraging the vast Start-up ecosystem created in the country. The
GRSE Accelerated Innovation Nurturing Scheme (GAINS) is envisaged as a means to leverage
this eco system for addressing present and emerging challenges in the ship design and
construction industry, while also achieving the objectives of Atmanirbharata'.
GAINS 2023, an Open Innovation Challenge, was launched by the Honourable Minister of State
for Skill Development, Entrepreneurship, Electronics & IT, Shri Rajeev Chandrashekar
on 22 May 23. Artificial Intelligence, Renewable/ Green Energy, and Energy Efficiency and
Efficiency Enhancement, which are key focus areas for GRSE were the thematic areas for
this challenge. This open challenge received an overwhelming response from innovators all
across the country, from which six promising proposals were selected for detailed
evaluation in Stage II and paid incentives of upto 4 Lakh each for their efforts. After a
rigorous down selection process, following proposals received from M/s Smart Machines and
Structures (MSME) and M/s Bodkin Technologies Pvt Ltd (Start-up) were declared winners of
GAINS 2023 on 29 Sep 23 and shall be funded by GRSE. Development orders to GAINS 2023
winners were handed over on 26 Mar 24 during the "GAINS-2023 Funding Award
Ceremony".
EXPORT INITIATIVES
Your Company is the first Indian shipyard to export a warship, an
Offshore Patrol Vessel to Mauritius in 2014. GRSE also exported a Fast Patrol Vessel
SCG PS Zoroaster' to the Govt. of Seychelles and completed its Guarantee Refit
& Dry Docking (GRDD) on 31 Mar 22. Your Company also exported 01 No. Ocean Going
Vessel (OGV) to Republic of Guyana at a value of 12.73 Million USD.
Your Company has taken initiatives to export Naval ships to the
friendly foreign countries and has identified SAARC, ASEAN, African & Latin American
countries. Countries such as Bangladesh, Guyana, Philippines, Seychelles, Malaysia,
Mauritius, UAE, Vietnam, etc. are in focus.
GRSE regularly supplies Portable Steel Bailey Bridges and its
components to the neighboring countries such as Nepal, Bhutan, and Bangladesh. Efforts are
on to further enhance the export of Bailey Bridges and their components to other friendly
foreign countries as well. During FY 2023-24, your Company has generated revenue of
46.90 crore from export orders which includes 33.60 crore from
Shipbuilding and 13.30 crore from the Bailey Bridges.
Your Company is presently executing the following Export Orders: (a)
Supply of 06 Patrol/ Surveillance Boats for Govt. of Bangladesh for a value of 1.82
Million USD. (b) Short Refit of Fast Patrol Vessel (FPV) SCG PS Zoroaster' of
the Govt. of Seychelles (Basic Refit Cost 23 crore received on 22 Mar 2024) to be
completed by 06 months. (c) 02 Nos. Pre-Fabricated Portable Steel Bridge worth 1.82 crore
of Nepal and 01 No. Pre-Fabricated Portable Steel Bridge worth 0.09 crore of Bhutan.
INFRASTRUCTURE AND TECHNOLOGICAL MODERNIZATION
In continuation of thrust on infrastructure modernisation &
technological upgradation in line with the functional & production necessities, the
Company has spent 50 crore as a part of CAPEX investment during the year 2023-24. Some of
the major facilities created/modernised during FY 2023-24 and currently in progress are as
under: (a) Upgradation of Main Unit (i) Installation of Robotic Welding M/C at
Ship Building Shop: Installed Robotic Welding M/C at Bay-4 for continuous automatic
welding of flat panel to enhance production capacity. (ii) Renewal of Groundways of
Building Berth-1: Renewal of Old existing groundways for launching of ship is
under completion. (iii) DA Manifold & piping network of Building Berth-1:
Complete revamping of DA Manifold & Piping Network to facilitate
production effectively has been completed.
(iv) Tower Cranes: Case for installation of Tower Crane on Jetty
at Main & RBD Unit is underway to facilitate outfitting work of ships.
(b) Upgradation of DEP Unit: The test bed No.1 is being upgraded
for testing MTU engine upto 4500 KW at 3000 engine speed. Under this upgradation,
Hydraulic Pressure Controlled Dynamometer has been procured and is under installation
along with installation of other accessories required for testing of the engines. The
total estimated cost towards upgradation is 6.00 crore.
(c) Rooftop Solar Plant: As a part of green energy initiative
for reducing the impact of atmospheric climate change, 300 KWp roof top solar power plant
has been commissioned in this year at RBD Unit. With this, the total capacity of rooftop
solar plant of the Company is now 2250 KW i.e. 2.25 MW, which is more than 50% of total
agreement load.
(d) New Steel Stockyard at RBD Unit: Construction of a new steel
stockyard at RBD with relocation of a portal crane is in progress.
(e) Concrete Hardstand at RBD Unit: About 4,000 sqm of area has
been developed at RBD Unit with concrete hardstand for production support, storage of ship
materials & hull blocks.
(f) Retrofitting of Old Buildings at Main & 61-Park: Retrofitting
& structural refurbishment/repair of old building of Main (Security Building, ES
Building & Time Office) and 61-Park (Block-D & Block-A partially) has been
completed.
(g) Refurbishment of Shops & Stores - Refurbishment of major
Shops & Stores at RBD, 61-Park & Taratala Units is under completion by replacing
old asbestos sheet with metal sheet, structural strengthening and allied jobs.
FUTURE OUTLOOK
A strong order book for design and construction of 18 warships for
Indian Navy at this juncture holds exciting times ahead for GRSE. With all the policy
initiatives taken by the Government of India in the recent times for encouraging &
supporting Atmanirbharta', the overall scenario for warship building
looks quite positive in coming years. The defence shipbuilding segment continues to look
promising on account of ambitious acquisition plan of the Indian Navy and Indian Coast
Guard which is quite encouraging for the Indian Shipbuilders and the entire eco-system. A
number of Request for Proposals (RFPs) for various shipbuilding projects have been floated
by the MoD during last one year and some more are expected to come out in the near future.
Further, the MoD plan to increase export of defence products to 3.59 Billion USD by end of
2024-25 augurs well for all of us. GRSE also plans to enter in to the highly competitive
commercial shipbuilding segment in order to address domestic as well as global demands for
ships. A dedicated Commercial Shipbuilding Department headed by one CGM level officer has
been constituted to explore the vast opportunities prevalent in this sector. Your company
has identified Ocean going Ferry (Cargo + Passenger), Tugs, Dredger, Barges, and E-Ferry
as targeted non-defence products to promote Export Market in Friendly Foreign Countries
(FFCs).
It is a good opportunity for the company to become part of global value
chain to meet our vision of becoming global player in Shipbuilding. Our willingness to
adopt latest technologies and modern tools in various areas of operations would play a
significant role in improving efficiency, quality and productivity of the Company. The
company has taken steps to adopt Industry 4.0 practices in its core areas of functioning
such as Design', Planning', Production' and Supply
Chain Management'. GRSE has strengthened its green energy footprint with inauguration
of another 300 kWp capacity of solar power at RBD Unit on 04 Apr 2024. The total capacity
of rooftop solar plants at GRSE is now 2250 kWp which is 56% of agreement load of 4MW.
GRSE plans to install new Roof-Top Solar Plants of 300 kWp capacity at 61 Park Unit and
200 kWp capacity at Taratala Unit during FY 2024-25. GRSE has plans to further enhance the
solar power plant capacity as part of its Green initiatives.
Technical Acceptance of India's largest "Fully Electric 150
Passenger Catamaran Ferry" built by GRSE for Government of West Bengal was signed on
22 Mar 24. This zero-emission ferry is poised to revolutionise passenger transport across
River Hooghly as well as National Waterways 1 and other Metro waterways of the
country. GRSE also received a Letter of Intent on 09 Nov 2023 towards construction and
delivery of an Ocean Research Vessel for National Centre for Polar & Ocean Research
(NCPOR) Goa, under the Ministry of Earth Sciences. The contract value is Rs 839.55
crore. The newly formed "Innovation & New Technology" department at GRSE is
also working on several projects incorporating new technologies such as Unmanned Surface
Vessel, Autonomous Underwater Vessel, Ship based drones, Green platforms etc.
GRSE has a glorious past and the company's credentials and
achievements are unmatched in the Indian Warship building arena. GRSE presently has a
world class infrastructure and amongst the best talent that is needed to scale newer
heights in shipbuilding. Presently, the company is at the cusp of transformation to embark
upon an unprecedented growth trajectory. This entails a mindset change, coupled with
efficient project management, strategic partnerships, new technology adaptation and most
importantly effective management of resources. GRSE has set its aspirations on
"Upgradation as a "Navaratna" Company by 2030 and be Globally recognized as
the Best Indian Shipyard".
Your Company's major future plans for steady business growth and
stability are as follows: (a) To become a Global player by increasing export footprint by
looking at the entire operations from the view point of cost, delivery time, quality &
credibility. In this regard, GRSE is actively pursuing all avenues to increase
geo-strategic reach for exports of defence as well as commercial ships to friendly foreign
countries. (b) Your Company believes that innovation in the production processes coupled
with enhanced efficiency and optimum utilisation of resources is the key to reduce
production costs. The Company intends to leverage its design, engineering and
manufacturing capabilities to improve its procurement and production processes.
(c) Continuous endeavour towards assessment of tentative & likely
opportunities from the Indian Navy, Indian Coast Guard, Indian Army, BRO, Ministry of Home
Affairs, Ministry of Earth Sciences, National Centre for Polar and Ocean Research, Naval
Physical and Oceanographic Laboratory, Inland Waterways Authority of India, Kochi Water
Metro, Government of West Bengal and other State Governments over the next five Years.
(d) Your Company is targeting orders from the Indian Navy, Indian Coast
Guard, Ministry of Home Affairs, Govt. of West Bengal, Odisha and Tamil Nadu for AMC &
Refits of GRSE built vessels & vessels of other companies, and has plans to further
strengthen and expand the refit & repair business verticals. (e) Towards
diversification, growth of the Engineering and Engine business segments is also being
aggressively pursued.
VENDOR DEVELOPMENT
VENDOR DEVELOPMENT WITH IMPETUS TO MICRO, SMALL AND MEDIUM ENTERPRISES
Our vendor base has played a pivotal role in achieving sustainable
growth of GRSE and your company is in constant endeavour to strengthen the MSME footprints
in different aspect of business growth through various vendor meets, seminars, webinars,
etc. organized by various important fora like CII, BCCI, MSME, etc. In the post pandemic
chapter too, webinars are being continued to be leveraged for identifying capable
entrepreneurs to the GRSE fold. In post Covid19 scenario, when resurgence with time was a
real challenge throughout the world, GRSE has continued their production excellency with
the delivery of warships within a very short interval. It was only possible when the
organization is equipped with world class commercial and best industrial practises and a
robust vendor base. The close monitoring of the major vendor's performance,
introduction of vendor grievance redressal system, and online performance rating system
for the vendors are the other major verticals of such performance. Further, the
development of online vendor registration for new vendor has been undertaken in order to
improve ease of registration process and minimise the registration cycle time.
In order to develop vendor base, your Company is in constant search for
competent vendors including MSMEs through organizing & participating in various Vendor
Meets, Seminars, Webinars, etc., organized by various important fora like; BCC (Bharat
Chamber of
Commerce), MSME-DFO (MSME-Development & Facilitation Office),
NSIC-NSSHO (National Small Industries Corporation-National SC ST Hub office), EEPC
(Engineering Export Promotion Council of India), MCCI (Merchants' Chamber of Commerce
& Industry), SIDBI (Small Industries Development Bank of India). As a special
initiative, your Company had organised an event, "Vendors Meet 2023" - An
interactive session with Business Partners for detailed interaction with stakeholders.
Several business partners participated in the programme, making it a grand success. Your
company has made significant improvement in production with effective execution of
contract management on the outsourced jobs, engagement of good capable service &
supply vendor, maintaining proper vendor relation and monitoring vendor performance. Your
Company has been providing increased thrust on enhancing procurement from Micro and Small
Enterprises (MSEs) and has strictly adhered to the restriction/preference on MSME vendors
wherever applicable in line with MSMED Act, and same are being strictly followed and
monitored closely. Your Company extends technical guidance and requisite support to these
industries wherever required by regularly conducting MSE Vendor Development programmes in
association with CII and MSME Ministry, Government of West Bengal. In order to meet the
requisite quality standard of the product, our quality control personnel are visiting
these industries to assist them.
During the financial year 2023-24, your Company procured items worth
987.50 crore from the MSEs, which is approx. 73.76% of the total annual procurement value
(considering exclusions as applicable for MSEs). The list of items reserved for
procurement from MSEs is available on your Company's website at
https://grse.in/policies-for-msme/. Your company is continuously increasing the permanent
vendor base after due assessment as per laid down company policy & procedure abiding
by directive of MSME Public Procurement Policy. Being a DPSU, your Company has on-boarded
on TReDS Platform and MSME Sambandh & MSME Samadhaan portals complying with Government
guidelines/ directives.
GOVERNMENT e-MARKETPLACE (GeM)
Since inception of the Government e-Market (GeM) (from 2017), Your
company has consistently achieved highest procurement volume on GeM amongst all the
shipyards. During the financial year 2023-24, your Company has recorded GeM procurement
volume of 572.00 crore.
INFORMATION TECHNOLOGY
Your company has prioritized SAP implementation and IT initiatives
extensively across its operations. This includes establishing a robust IT infrastructure
with a state-of-the-art on-premise Data Centre in Kolkata and a Disaster Recovery Centre
in Mumbai. Since 2010, key business processes such as Supply Chain, Finance, HR, Payroll,
Vendor Management, and Plant Maintenance have seamlessly integrated into SAP ERP.
Moreover, the company employs advanced technologies like AVEVA CAD, VR LAB, and PDM-PLM to
enhance design operations. Cyber Security remains a top priority with a well-defined
organizational structure overseen by the Chief Information Security Officer (CISO). The
company has implemented AIR-GAP and ILL-based internet LAN across all units, conducted
comprehensive Cyber Security Enhanced Awareness Training, and centralized SAP-ERP
management to optimize IT infrastructure efficiency. Innovations in Product Data
Management (PDM) and Product Lifecycle Management (PLM) software are set to revolutionize
operations, particularly in modular construction for P17A ships. Additionally, the company
facilitates remote work through secure VPN access and high-end Video Conferencing
solutions. The Company also has company-wide comprehensive CCTV surveillance system
ensuring effective monitoring, control and enhancing safety and security measure.
HUMAN RESOURCE & ADMINISTRATION
Manpower
The total Manpower strength in the roll of the Company as on 31 Mar
2024 was 1,649 including 473 Board level & below Board level Officers on regular roll,
11 Officers and 60 Supervisors on Fixed Term contract. Statements showing the
representation of SC/ ST/ OBC / PWD / Women, etc., as on 31 Dec 2023 as well as the total
recruitment made during the period from January to December 2023 are given at Appendices
"A & B" of this report. Further, in accordance with Ministry of Corporate
Affairs Notification dated 05 Jun 2015, Government Companies are exempted from the
provisions of Section 197 of the Companies Act, 2013 and its rules thereof.
Industrial Relations
Industrial relations during the period under review across all Units of
the Company including DEP, Ranchi remained more or less peaceful. The Management and GRW
Mazdoor & Staff Union signed a Memorandum of Understanding on Promotion policy for
operative category of employees on 16 May 23 upon receipt of Board approval, Memorandum of
Settlement in the same matter was signed on 29 May 23.
The Management and 03 Unions representing Unionized employees of DEP,
Ranchi signed a Memorandum of Settlement on Promotion policy for operative category of
employees on 03 June 23.
Human Resource Development
The Company is nurturing and developing a well-balanced workforce of
talented individuals who can contribute towards enhancing organization's growth
trajectory. The Company has undertaken various initiatives to enhance the efficiency of
the workforce in an atmosphere that encourages pursuit of individual excellence and
cohesive teamwork. In FY 2023-24, your company has prepared and implemented a well-defined
Annual Training Plan covering technical, leadership, managerial effectiveness, functional,
cross-functional and behavioural competencies development topics for all categories of
employees. During the year, 3,860 training man-days (approx.) were achieved through
various training programmes. Training programmes were conducted by nominating participants
in various online and offline workshops/conferences/webinars organized by external
agencies/training providers in India. In-house training programmes were also conducted by
inviting faculty/ trainers from reputed institutions/agencies, as well as through in-house
faculty.
Employee Engagement Initiatives (A) GRSE DAY CELEBRATION:
The 65th GRSE Day was celebrated on 22 Apr 2024. GRSE
Shri' and CMD's Commendation' were conferred to employees for their
outstanding performance in the year 2023. GRSE Merit Awards were given to the
employees' children who excelled in their academic performance in the year 2022-23.
GRSE Varta 2024', an Annual In-House Journal was released on this occasion.
Employees who retired between 01 April 2023 to 31 March 2024 and completed 40 years of
service were also felicitated. Taratala Unit was adjudged as cleanest unit and conferred
Swachh Unit Award. Prizes for Group Events of the Annual Sports viz Cricket &
Volleyball were given to the Runners-up and Winner teams during the event. Employees
staged cultural programme which was appreciated by all.
(B) CELEBRATION OF GRSE FAMILY DAY "AHOBAN'
AHOBAN is a day filled with joy and gaiety for recreation of the entire
GRSE family. The family members eagerly wait for this annual event. This year AHOBAN was
held on 14 Jan 2024 with well thought-out events for each and every family member of GRSE
employees. Around 1000 employees and their family members participated in this event.
Cultural event was performed by the in-house talents.
(C) VANITA 2024: INTERNATIONAL WOMEN'S DAY
GRSE celebrated International Women's Day in a creative and
thoughtful manner. A day-out programme filled with fun and frolic was organized for all
the female employees of the company on 06 March 2024. The programme comprised of various
activities and scintillating cultural performances by employees.
(D) REVIEW AND REVISION OF HR POLICIES
Keeping in view the organizational requirement, HR policies are
reviewed for talent acquisition, talent management, welfare and career progression of
employees. The Company has formulated policies for engagement of project-based manpower on
contractual basis, re-designation of senior officers as General Manager In-charge,
absorption of Fixed term Supervisors in permanent roll and Child adoption leave. In
addition, a number of existing policies such as Compensation package scheme, Recruitment
and promotion Rules for various category of employees, Foreign TA/DA rules for
non-executives, leave entitlement for new joinees were reviewed and revised as per
organizational requirement.
(E) CAREER ADVANCEMENT SCHEME FOR NON-EXECUTIVE CATEGORY EMPLOYEES
Internal induction was conducted for career upgradation of
deserving employees of GRSE from non-executive category working in permanent roll of the
company under Abhyudaya Scheme for Career Advancement of Non-Executives Category of
Employees' in 2023. As per the scheme, selection process consists of knowledge test,
skill test and personal interview.
(F) LEADERSHIP DEVELOPMENT PROGRAMMES
Orientation Programme for Capacity Building of Functional Directors of
CPSEs was conducted for Officers in Senior Management Level. It aimed to enhance the
skills of Functional Directors in fields of corporate governance, finance, risk
management, strategic management etc.
(G) MID-CAREER TRAINING PROGRAM
Mid-Career Training Program on "Leading and Managing in the 21st
Century" was conducted for Managers and Senior Managers coming in the zone of
promotion. It aimed to develop and sharpen the managerial and leadership skills of
mid-level managers.
(H) MANAGEMENT DEVELOPMENT PROGRAM
Management Development Program was conducted for newly inducted
Assistant Managers in which the officers were groomed in areas of Personality Development,
Managerial Skills, Soft skills, Teambuilding etc.
(I) SAFETY TRAINING
Safety Training was conducted for employees as per MoU directives
through GST K in which around 350 employees were trained.
(J) SKILL UPGRADATION AND CERTIFICATION TRAINING PROGRAM
Skill Upgradation and Certification Training Program in various
technical trades was conducted in order to improve the efficiency of the operatives in
which around 130 employees were trained and certified.
(K) Apprentice Training
The company has trained 210 apprentices during FY 2023-24. Apprentices
were engaged under Trade Apprentice, Graduate Apprentice and Technician Apprentice
categories and their total strength was approx. 13% of total manpower strength.
The company has a dedicated Apprentice Training Department named
Technical Training Centre for conducting Apprenticeship training at Taratala Unit. Apart
from the technical training, various development programmes were conducted for overall
personality development of the apprentices. Safety awareness training sessions were
conducted for all apprentices before they were placed for on-job-training in the yard.
PERSONS WITH DISABILITIES (PWD)
The Company extended all necessary relaxations /concessions to the
employees with disabilities as per the Statute / Govt. directives.
EMPOWERMENT OF WOMEN
The women representation is 5.2% of the total strength in the Company
at the end of FY 2023-24. During 2023, out of total recruitment of 51 employees 05 were
female employees which is 9.8%.
SAFETY AT WORK
The Shipyard has strived to ensure safe working environment at the
company, and in order to achieve the goal, systematic approach to safety management has
been adopted through close monitoring and implementation of safety norms and procedures at
work place. Your company has achieved a safety frequency rate of 1.24 (for permanent
workers) and 0.66 (for contractor workers) during the year 2023-24.
In order to maintain high safety standard, your Company has imparted
system-based Safety Training to all employees including contractor employees through Group
Safety Training Kiosk (GSTK), where more than 167 batches of Safety Awareness Programme on
different topics like Material Handling, Hot Work, Electrical Safety, Painting Activity,
Height Work Activity, Work at Confined Space etc. have been organized. As a promotional
measure, different safety competitions were conducted like drawing competition, picture
composition competition and safety quiz competition by arrangement of mobile safety
display van
INDUSTRIAL SECURITY
GRSE is a Public Sector Undertaking functioning under the
administrative control of the Ministry of Defence, Govt of lndia. The shipyard has been
declared a "Prohibited Place" under the Indian Official Secret Act 1923. Sec-2
clause 8 sub clause (a) published under Govt. of West Bengal Gazette Notification Bo.
2145/ (I) (7)-P dated 30th Mar 2004. It is also placed in Category A' i.e.
"Highly Sensitive" from security point of view by the IB, Ministry of Home
Affairs. The physical security of the production units of our Company has been entrusted
to the Armed Guards of Central Industrial Security Force (CISF). Further, twenty-four
hours water-front patrolling with armed personnel and a robust CCTV system covering all
critical and important locations are in place. The Entry / Exit of all Employees is being
done through Facial Recognition System. The Police Clearance Certificate of all Contractor
Labourers are being obtained before issue of the Gate Pass.
OFFICIAL LANGUAGE
GRSE is committed to adhere to the Official Language (OL) policy of the
Government of India (GoI). During the year 2023-24, the Company has achieved the various
targets prescribed in the Annual Programme 2023-24 issued by Dept. of OL, Ministry of Home
Affairs (MHA), GoI to transact official work in Hindi. The efforts made towards
implementation of Official Language include: (a) Hindi Month Celebrations: Hindi
Month and Hindi Day was observed during September-October month in all the Units and
Offices of the Company. During the Hindi month, employees of the Company participated
enthusiastically in various programs and competitions.
(b) Official Language Implementation Committee: Official
Language Implementation Committee (OLIC) meetings were conducted on quarterly basis under
the chairmanship of Chairman & Managing Director, to review the progress made by
various departments.
(c) Incentives: Incentive Schemes are propagated among all
employees and number of employees who took part in these schemes were awarded with cash
prize.
(d) Hindi competitions in local schools to encourage the use of
Hindi: Use of Official Language is not restricted within the four walls of GRSE but is
also publicized outside the Company, by conducting Hindi competitions in Schools. Hindi
Essay competition was conducted on 17th October 2023 in Brahma Hindi Primary
School and Hindi Quiz competition was organized on 11th December 2023 in
Fatehpur Hindi Nagri Pracharak Vidyalaya and prizes distributed to best three
participants. (e) Hindi competition under the aegis of TOLIC: GRSE organized Hindi
Essay competition under the aegis of Town Official Language Implementation Committee on 20th
December 2023. Nominated employees of more than 30 PSUs of Kolkata including GRSE
participated in this competition. (f) Rajbhasha Awards:
(i) TOLIC RAJBHASHA SHIELD: Rajbhasha Shield has been awarded to
GRSE for the year 2022-23 for Excellence in Implementation of Official Language in the
company by Town Official Language Implementation Committee (PSU), KOLKATA. The award
presented by Honourable Chairman of TOLIC was received by Director (Personnel) of GRSE at
a grand ceremony held at Kolkata on 25th August, 2023.
(ii) Certificate of appreciation by MHA-OL : GRSE was awarded a
certificate of appreciation by Smt. Anshuli Arya, IAS, Secretary, Official Language
Department, MHA-OL in the presence of Union Minister of State for Home Affairs, Shri
Nishith Pramanik. This recognition was given to the Company for its special contribution
in the successful organization of Joint Regional Official Language Conference of East and
North-Eastern Regions, organized by the Department of Official Language, Ministry of Home
Affairs in Siliguri (West Bengal) on March 08, 2024. (iii) TOLIC Active Participation
Award: Active Participation Award has been awarded to GRSE for the year 2023-24 by The
Town Official Language Implementation Committee. The Award presented by Honourable
Chairman of TOLIC was received by Director (Personnel) of GRSE at a ceremony held at
Kolkata on 31st January 2024.
(iv) Prizes in Various Inter-PSU Hindi Competitions: Our GRSE
employees have made us proud by winning 04 different prizes in Various Hindi Competitions
organized during the year 2023 by different PSUs under the aegis of TOLIC (PSU), KOLKATA.
(v) Manager (OL) has been awarded appreciation letter by TOLIC for Excellence in
Implementation of Official Language in the GRSE on 25 Aug 2023.
AWARDS & RECOGNITIONS
During the year, your Company has received various awards and
recognitions. Some of the important accolades conferred to the Company are as under:
(a) Governance Now 10th PSU Award for "Communication
Outreach", "Nation Building" and "Reskilling of Employees (Training
& Development)" on 22 Mar 24.
(b) "Sakriya Sahbhagita Samman" from the Town Official
Language Implementation Committee for the year 2023-24 on 31 Jan 24. (c) 91st
SKOCH Awards for "Unique Transfer & Loading of Fully Built 250 T Goliath
Crane" on 27 May 23.
(d) Durga Bharat Param Samman on 18 Oct 23.
(e) PRSI National Awards 2023 for "Coffee Table Book",
"Best PSU for Implementing CSR", "Best PSU for Childcare Project",
"Best Organisational Effort for Atmanirbhar Bharat" and "New R&D
Efforts in Defence Sector" on 25 Nov 23.
(f) 13th ICC PSE Excellence Award 2023 for "Company of
the Year", "Contribution of Women &/ Differently Abled in PSEs",
"CSR
& Sustainability", "Operational Performance
Exscellence" and "Corporate Governance" on 20 Dec 23.
(g) "Best Strategic Central Public Sector Enterprise of India
Defence (Naval & Shipbuilding)" at 6th IPSE Awards 2024 on 10
Feb 24. (h) WIPS Award 2024 in the Category "Best Performing Enterprise 2024" on
12 Feb 24.
(i) Cmde PR Hari, IN (Retd), CMD GRSE recognized with CEO of the
Year Award' at the 22nd Global Edition - Business Leader of the Year 2024
& the CEO with HR Orientation Award' at the World HRD Congress 2024 on 26
Feb 24.
(j) CII AI Award in the Project "AI Enabled NDT" on 26 Feb
24.
Directors' Report
CORPORATE GOVERNANCE
Your Company is committed to maintain the highest standards of
corporate governance in all spheres of business activity carried out by your Company and
continues to lay strong emphasis on transparency, accountability and integrity. Your
Company complies with the applicable regulations under the Companies Act, 2013, the SEBI
Listing Regulations and also the Guidelines on Corporate Governance for CPSEs issued by
Department of Public Enterprises (DPE), except with respect to the composition of Board of
Directors viz. appointment of Independent Directors including a Woman Director. GRSE being
a Government Company, the power to appoint Directors vests with the Government of India
and the Company has made necessary intimations to the Administrative Ministry for filling
up the post of Independent Directors including that of a Woman Director. The Company also
strives to comply with the applicable Secretarial Standards issued by the Institute of
Company Secretaries of India.
Further, DPE Guidelines on Corporate Governance for CPSEs provide that
CPSEs would be graded on the basis of their compliance with the Guidelines. DPE has graded
GRSE as "Excellent" for the year 2023-24. In terms of Regulation 34 of the SEBI
Listing Regulations and DPE Guidelines, a Report on Corporate Governance along with
Compliance Certificate issued by M/s. Maheshwari R & Associates, Company Secretaries
forms part of this Annual Report.
BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL
The Board of your Company comprises a total of ten (10) directors which
includes four (4) Whole-Time Directors, five (5) Part-Time Non-Official (Independent)
Directors including one (1) Woman Director, and one (1) Government Nominee Director.
During the year 2023-24, the following changes took place in the Board of Directors and of
Key Managerial Personnel (KMP) of your Company:
Sl. No. |
Name of Director |
Designation |
Date of Appointment |
Date of Cessation |
(a) |
DIG Subrato Ghosh, ICG (Retd.) |
Director (Personnel) |
20 Jun 2023 |
- |
DIRECTORS RETIRING BY ROTATION
Pursuant to Section 152(6) of the Companies Act, 2013 and Article 206
and 207 of Article of Association of the Company, Shri Ramesh Kumar Dash, Director
(Finance), who has served on the Board of Directors and the longest amongst the retiring
directors, is liable to retire by rotation, and being eligible, offers himself for
reappointment.
DECLARATION AND MEETING OF CRITERIA BY INDEPENDENT DIRECTORS
During the financial year 2023-24, the Company has received
declarations from all the Independent Directors of the Company confirming that they meet
the criteria of independence as prescribed under the Companies Act, 2013, the Guidelines
on Corporate Governance for CPSEs issued by the Department of Public Enterprises and the
SEBI Listing Regulations. Further, in the opinion of the Board, the Independent Directors
fulfil the conditions prescribed under the
SEBI Listing Regulations and are independent of the management of the
Company. The Independent Directors of the Company have confirmed that they have registered
themselves with the Indian Institute of Corporate Affairs (IICA), and have included their
name in the databank of Independent Directors within the statutory timeline and they will
also appear for the online proficiency test within the prescribed time, wherever
applicable.
MEETINGS OF INDEPENDENT DIRECTORS
During the year 2023-24, a separate meeting of Independent Directors
was held on 20 Jan 2024 in which all the Independent Directors were present.
MEETINGS OF THE BOARD
Nine (09) meetings of the Board of Directors were held during the year.
For further details, please refer to the Report on Corporate Governance'.
REMUNERATION POLICY & EVALUATION OF BOARD'S PERFORMANCE
Your Company is a Government of India company under the Ministry of
Defence. The Directors of the Company are appointed by the President of India and their
remuneration is fixed in accordance with the DPE Guidelines by the Administrative
Ministry. The Article 194 and 216 of the Articles of Association of your Company also
states that the President of India will appoint Directors and determine their
remuneration. Since, the Board level appointments are made by President of India, the
evaluation of performance of such appointees is also done by the Government of India.
AUDIT COMMITTEE
During the year, the Audit Committee had proper composition in
accordance with Section 177 of the Companies Act, 2013, the DPE Guidelines on Corporate
Governance for CPSEs, 2010 and the SEBI Listing Regulations. For further details, please
refer the Report on Corporate Governance'.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134(3)(c) and 134(5) of the
Companies Act, 2013, your Directors hereby confirm that:-(a) In the preparation of the
Annual Accounts for the year ended 31 March, 2024, the applicable accounting standards
read with requirements set out under Schedule III to the Companies Act, 2013, had been
followed and there are no material departures; (b) The Directors have selected such
accounting policies and applied them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the state of affairs of
your Company as at 31 March, 2024 and of the profit of your Company for the year ended on
that date; (c) The Directors have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act, 2013
for safeguarding the assets of your Company and for preventing and detecting fraud and
other irregularities;
(d) The Directors have prepared the Annual Accounts on a going
concern' basis; (e) The Directors have laid down internal financial controls to be
followed by your Company and such internal financial controls are adequate and were
operating effectively; and (f) The Directors had devised proper systems to ensure
compliance with the provisions of all the applicable laws and that such systems are
adequate and operating effectively.
STATUTORY AUDITORS
Your Company being a CPSE, the Comptroller & Auditor General of
India (C&AG) has, under Section 139(5) of the Companies Act, 2013, appointed M/s.
Guha, Nandi & Co., Chartered Accountants, Kolkata, as the Statutory Auditors of the
Company for the financial year 2023-24.
The Comments of the C&AG u/s 143(6) of the Companies Act, 2013 on
the Financial Statements of the Company for financial year 2023-24 form part of this
Report.
COST AUDITORS
Pursuant to Section 148 of the Companies Act, 2013 and the Companies
(Cost Record and Audit) Rules, 2014, the Board of Directors of your Company has appointed
M/s. Chatterjee & Co., Cost Accountants, Kolkata, as the Cost Auditors of your Company
for the financial year 2023-24 to conduct audit of cost records maintained by your
Company.
SECRETARIAL AUDITOR
In terms of Section 204(1) of the Companies Act, 2013, the Board of
your Company has appointed M/s. Mehta & Mehta, Company Secretaries to conduct
Secretarial Audit of the Company for the FY 2023-24. The Secretarial Audit Report of M/s.
Mehta & Mehta, Company Secretaries is placed at Appendix - "C" to
this Report. The Secretarial Audit Report has no adverse remarks. However, the other
observations and clarifications made by the Secretarial Auditor in their Secretarial Audit
Report are self-explanatory. Pursuant to the SEBI circular no. CIR/CFD/ CMD1/27/2019 dated
February 8, 2019, the Company has obtained an Annual Secretarial Compliance Report for the
year 2023-24 from M/s. Mehta & Mehta, Company Secretaries, confirming compliance of
SEBI Regulations / Circulars / Guidelines issued thereunder and applicable to the Company
and the said report was filed with the National Stock Exchange of India Limited and BSE
Ltd. There are no adverse remarks in the said report.
INTERNAL AUDITOR
The Board of your Company has appointed M/s. S Guha & Associates,
Chartered Accountants for carrying out Internal Audit of the Company for the financial
year 2023-24.
DETAILS OF FRAUDS REPORTED BY AUDITORS UNDER SECTION 143 OF THE
COMPANIES ACT, 2013
Nil
CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES
During the year under review, your Company did not enter into any
contract / arrangement / transaction with related parties in pursuance of section 188 of
the Companies Act, 2013 and the rules framed thereunder and Regulation 23 of the SEBI
Listing Regulations. Your Directors draw attention of the Members to Note 32 to the
financial statements which sets out related party disclosures as per Indian Accounting
Standard 24. The Form AOC-2 on details of related party transactions has been attached as Appendix
"D" to this Report, as required under section 134(3)(h) of the
Companies Act, 2013. The Company has a Policy on Related Party Transactions, which can be
accessed at https://grse.in/policies/GRSE_Policy_for_Related_Party_ Transactions.pdf
PARTICULARS OF LOAN, GUARNATEES OR INVESTMENTS
During the year under Report, your Company has not: (a) given any loan
to any person or other body corporate;
(b) given any guarantee or provided security in connection with a loan
to any other body corporate or person; nor (c) acquired by way of subscription, purchase
or otherwise, the securities of any other body corporate, as prescribed under Section 186
of the Companies Act, 2013.
VIGIL MECHANISM
As a part of its vigil mechanism, your Company has adopted a Whistle
Blower Policy to provide appropriate avenues to the employees of your Company to report to
the management, instances of unethical behaviour, actual or suspected fraud or violation
of your Company's Code of Conduct. As per the Whistle Blower Policy, a whistle blower
can send written communications to the Chairman & Managing Director of your Company
(or any person to whom he has delegated his power). Alternatively, the whistle blower may
send such Protected Disclosure directly to the Chairman, Audit Committee. Once a Protected
Disclosure is received, a Screening Committee comprising the Chairman & Managing
Director of your Company, a Functional Director as nominated by C&MD and the Chairman,
Audit Committee, will be constituted to investigate into the matter. All employees are
encouraged to use this whistle blowing mechanism and voice their concerns to the
Management. Further, all employees have been given access to the Chairman, Audit
Committee. The Whistle Blower Policy can be accessed on your Company's website at
https://grse.in/wp-content/uploads/2022/04/Whistle-Blower-Policy-1.pdf.
ANNUAL RETURN
In accordance with the Companies Act, 2013, the Annual Returns in the
prescribed format (Form MGT-7) will be available on your Company's website at
https://grse.in/annual-returns/.
MANAGEMENT DISCUSSION & ANALYSIS
The Management Discussion & Analysis Report as required
under the SEBI Listing Regulations and the DPE Guidelines on Corporate Governance for
CPSEs forms part of this Annual Report.
CORPORATE SOCIAL RESPONSIBILITY
Corporate Social responsibility is an integral part of GRSE's
Corporate strategy. Fulfilment of social and environmental responsibilities are accorded
equal importance alike business operations.
GRSE continuously endeavours to align its CSR initiatives with national
mission and Sustainable Development Goals. The CSR initiatives were primarily implemented
in the areas surrounding the production units with the aim to improve the quality of life
and bring about inclusive growth for the marginalised segment.
The CSR projects are carefully selected to address the concerns of the
communities residing in the vicinity and is in consonance with the social fabric of the
local community.
GRSE's CSR initiatives have played a significant role in
mainstreaming the differently abled children, holistic development of underprivileged and
vulnerable children, empowering the youth by providing employment oriented vocational
trainings, health camps for the disadvantaged segment etc. These initiatives have played
significant role in socioeconomic development of the vast stretch of underprivileged
segment. The detailed outline of the Annual Report on CSR initiatives undertaken during
the FY 2023-24 has been annexed at "Appendix- E" RISK MANAGEMENT
Pursuant to Regulation 21 of SEBI Listing Regulations, the Company has
constituted a Risk Management Committee. The details of the Committee and its terms of
reference, Risk Management Policy etc. are set out in the Corporate Governance Report and
a detailed note on Risk Management is provided in the Management Discussion and Analysis
Report, which forms part of this report.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
The Securities and Exchange Board of India (SEBI) has mandated
inclusion of Business Responsibility and Sustainability Report (BRSR) as part of the
Annual Report for the top 1000 listed entities based on market capitalisation. Regulation
34(2)(f) of SEBI Listing Regulations stipulates that the annual report shall include a
Business Responsibility and Sustainability Report in the format specified by the SEBI.
Accordingly, the Business Responsibility and Sustainability Report for the year 2023-24
has been drawn up and appended to this Report.
INTERNAL FINANCIAL CONTROLS
Your Company has in place adequate internal financial controls with
reference to financial statements. A detailed note on Internal Financial Controls is
provided in the Management Discussions and Analysis Report, which forms part of this
report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Your Company being a Government Company engaged in producing defence
platforms, the disclosure of information with respect to conservation of energy,
technology absorption, foreign exchange earnings and outgo under the provisions of Section
134(3)(m) read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is not required as
the MCA vide its notification GSR No.680 (E) dated 04 Sept 2015 has granted exemption to
Defence Public Sector Undertakings.
IMPLEMENTATION OF RTI ACT
RTI matter are being executed as per the provisions of the Right to
Information Act, 2005 and Rules made therein. During the year 2023-24, a net total of 144
number RTI requests through online/ offline mode were received to provide
information', while opening balance number from previous year was brought
forwarded as 12 in number. A total of 128 number of RTI applications were replied to
during the year and 01 RTI application transferred to other concerned public authority and
remaining 27 number of RTI applications were taken as "carried forward" to the
year 2024-25.
13 No. of RTI First Appeals were received during 2023-24 through
online/offline mode and 02 No. First Appeal was carried forward as "opening
balance" from previous year. A total of 14 number of RTI First Appeals were decided
and replied and remaining 01 of RTI First appeal were taken as carried forward'
to the year 2024-25.
In this financial Year 2023-24, No RTI Second Appeal were filed with
Central Information Commission (CIC), while opening balance from previous year was brought
forwarded as 01 in number. The said second appeal has since been heard and decided on 24
Apr 2024. The Quarterly Returns are being uploaded on the CIC's website as well as on
the DOPT website. Proactive Disclosures of Information were updated on the website of GRSE
under RTI link as directed by CIC. In compliance with the provision of section 26 of the
RTI Act, 2005, an in-house Awareness programme on RTI Act was conducted during the year
2023-24.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013
In pursuance of Section 4 of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition & Redressal) Act 2013, the Internal Committee was
reconstituted on 31st August, 2023 comprising of 10 members for West Bengal
based units. A separate Internal Committee is in existence for DEP Unit, Ranchi. The
Internal Committee of DEP was reconstituted on 29 Mar 23 comprising of 5 members. In
accordance with Section 21 of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition & Redressal) Act 2013 and the Rules framed thereunder, the following
details are submitted:
(i) Number of complaints of sexual harassment received during
the year |
NIL |
(ii) Number of complaints disposed of during the year |
NIL |
(iii) Number of complaints pending more than ninety days |
NIL |
(iv) Number of workshops or awareness programme against
sexual harassment carried out |
03 |
(v) Nature of action taken by the employer |
NA |
PUBLIC GRIEVANCES
In order to facilitate resolution of grievances in a transparent and
time bound manner, the Department of Administrative Reforms & Public Grievances,
Ministry of Personnel, Public Grievance & Pensions, Government of India has initiated
a web-based monitoring system at www.pgportal.gov.in (PG Portal).
During the year 2023-24, a total of 19 number of Public Grievance
Petitions through online/offline mode were received and no grievance was brought forward
as "opening balance' from previous year. Total 13 number of Public Grievance
were resolved and remaining 06 number of Public Grievance Petitions are under different
stages of action and carried forward to the year 2024-25.
VIGILANCE ACTIVITIES
Your Company has a well-established vigilance department headed by
Chief Vigilance Officer (CVO). The main thrust of the Vigilance Department is to ensure
transparency, fairness & probity in all spheres of activities of the Company. Towards
this, focus of the department was on Surveillance & Detection as well as Punitive
& Preventive vigilance. To make preventive vigilance function more effective, the
Department has given thrust to leverage technology. During the year, many spheres of
activities were taken up and various processes were carefully observed, analysed and
scrutinised to ensure that the systems of checks & balances are working as per the
required parameters. In certain cases, the management was advised for systemic
improvements. Apart from the above, the following activities were also carried out by the
Vigilance Department during the year:
(a) CTE Type Intensive Examinations were conducted in the FY 2023-24
(b) An awareness cum sensitization program for all Officers and Supervisors on filing of
Annual Property Return was conducted in Jan 2024.
(c) Several Preventive Vigilance Measures were undertaken as below: (i)
Files were randomly picked and scrutinized; (ii) CVC's Online complaint handling
mechanism is linked with GRSE Web Site in addition to the GRSE's own online Complaint
handling system; (iii) Complaint boxes are installed in all units of GRSE; (iv) During
Vigilance Awareness Week (VAW) 2023 following activities were conducted:
Integrity Pledge was taken by all employees.
Gram Sabha was held at Gosaba Village.
CBI Kolkata conducted an awareness session on Preventive
Vigilance.
Different awareness activities involving GRSE Employees and
their family members were conducted.
Vendor's Meet was conducted wherein Vendors participated.
(v) Periodic/ surprise rounds by CVO & Vigilance officials at
different locations of GRSE were conducted.
(d) Investigations were conducted on the complaints received from
various sources and appropriate actions were taken.
(e) Scrutiny of 20 % of the Annual Property Returns (APR) have been
completed for the Year 2023.
(f) Inputs on the vigilance status/ Clearance of officers below board
level were conveyed for around 1,515 cases. The inputs on the vigilance profile of the
Board level officers were also conveyed as desired by the Ministry. (g) Several System
Improvements were suggested for the interest of the organization.
(h) Structured meetings were conducted between CVO and C&MD in
every quarter.
(i) Sensitive posts have been reviewed and identified.
(j) The following Vigilance Activities have been made and/or continuing
online: (i) Submission of Annual Property Return (ii) Processing of Vigilance Clearance of
employees
INTEGRITY PACT
One of the initiatives of the Central Vigilance Commission (CVC) to
eradicate corruption in procurement activity is the purpose for introduction of Integrity
Pact in large value contracts. In line with the directives from Ministry of Defence and
the CVC, your Company has adopted Integrity Pact with all vendors / suppliers /
contractors / service providers for all Orders / Contracts of value 2 crore and above and
only those vendors/bidders, who commit themselves to IP with the Company would be
considered competent to participate in the bidding process.
The Integrity Pact essentially envisages an agreement between the
prospective vendors/bidders and the principal (GRSE), committing the persons/officials of
both sides, not to resort to any corrupt practices in any aspect/stage of the contract.
Only those vendors/bidders, who commit themselves to such a Pact with the principal, would
be considered competent to participate in the bidding process. Integrity Pact, in respect
of a particular contract, would be operative from the stage of invitation of bids till the
final completion of the contract. Any violation of the same would entail disqualification
of the bidders and exclusion from future business dealings.
As recommended by the CVC, the Company has appointed Shri Bam Bahadur
Singh and Shri Pidatala Sridhar, IRS (Retd.) as Independent External Monitors (IEMs) for a
period of three years from 26 Dec 2021 for monitoring implementation of Integrity Pact in
the Company. During the Financial Year 2023-24, the IEMs monitored 162 contracts and held
quarterly meetings with commercial department and half yearly structured meetings with the
Chairman & Managing Director.
GENERAL
Your Directors state that no disclosure or reporting is required in
respect of the following items as there were no transactions on these items during the
year under review: (a) Detailed reasons for any voluntary revision of financial statement
or Board's Report in the relevant financial year in which the revision is made.
(b) Details relating to deposits covered under Chapter V of the
Companies Act, 2013.
(c) Issue of equity shares with differential rights as to dividend,
voting or otherwise.
(d) No significant or material orders were passed by the Regulators or
Courts or Tribunals which impact the going concern status and future operations of your
Company.
ACKNOWLEDGEMENTS
Your Directors express their deep appreciation and place on record
their gratitude to the Department of Defence Production and other Departments in the
Ministry of Defence for their continued support, assistance and guidance. The Directors
also express their sincere thanks to the Government of India and also to the Governments
of West Bengal, Jharkhand and various other States, for their continued co-operation and
valuable support. Your Directors are particularly grateful to the Indian Navy, Indian Army
and Indian Coast Guard Headquarters, Border Road Organisation (BRO), Ministry of Home
Affairs, Kolkata Port Trust, Public Works Departments of various State Governments, Police
Department of West Bengal & Kolkata and other valued customers as well as business
associates for the confidence reposed by them in your Company. We will fail in our duty if
we do not acknowledge the cooperation and positive approach of the Warship Production
Superintendent, Coast Guard Refit Production Superintendent and their dedicated teams
under whose oversight our ships are being built/ refitted. Also, we thank all
classification societies, in particular, IRS & ABS, who have ensured quality and
adherence to the required standards.
The Directors acknowledge with thanks the valuable advice rendered by,
and co-operation received from the Comptroller and Auditor General of India, the Principal
Director of Commercial Audit, Ex-officio Member of the Audit Board, Bengaluru, Principal
Controller of Defence Accounts (Navy), Mumbai, Controller of Defence Accounts (Navy),
Kolkata, Registrar of Companies, the Department of Public Enterprises, the Securities
Exchange Board of India, the National Stock Exchange of India Limited and BSE Limited.
The Directors wish to place on record their appreciation to its
Statutory, Cost, Internal and Secretarial Auditors, Company's Bankers, Trade Unions
and all Officers and Employees at various levels of the organisation for their hard work,
dedication and commitment. The enthusiasm and unstinted efforts of the employees have
enabled your Company to remain at the forefront of the industry despite increased
competition from several existing and new players.
|
For and on behalf of the Board of Directors |
|
Sd/- |
|
Cmde Hari P R, IN (Retd.) |
Place: Kolkata |
Chairman & Managing Director |
Dated: Aug, 2024 |
DIN: 08591411 |