Organisational Study Report of Cochin Shipyard Limited

Organizational Study Report Cochin Shipyard Limited, Cochi

Caarmel Engineering College, Perunadu

ORGANIZATIONAL STUDY AT COCHIN

SHIPYARD LIMITED.

An Organization study Report submitted to Mahatma Gandhi University for the

partial fulfillment of the Award of Master of Business Administration

Submitted By

KISHORE RAVEENDRAN

(Reg No 40117)


Under the Supervision of

ARAVIND.M

Asst. Professor MBA

DEPARTMENT OF MANAGEMENT STUDIES

2013 June



ACKNOWLEDGEMENT

On completing this Organizational Study it is my pleasure to thank to

acknowledge and extend my heartfelt gratitude to the following people who made the completion

of this Organizational Study possible:

My Faculties, Assist.Prof. Pradeep.S and Aravind.M for his vital encouragement and support.

Mr.Ramesh K.J (DGM- HR), and Mr. A.K Subhash, Assist.General Manager, Cochin Shipyard

Limited, for the invaluable contribution and support, all the employees of CSL who are helped

me in this Organizational Study.

My friends and family and specially my father‟s friend and his family who are gave me the

physical and moral support in completing this Organizational Study in time.

Just because of all his grace , the Almighty for showering His blessings in abundance upon me

during the course of this Organizational study.



DECLARATION

I hereby declare the report entitled “Organizational Study of ALUMINUM

INDUSTRIES LTD (ALIND), SWITCHGEAR DIVISION, MANNAR”,

submitted by me for the award of the degree of Master of Business Administration

of M.G. University is my own work under the guidance of Mr. Aravind.M

Department of Management Studies, Caarmel College of Engineering, Perunadu.

I also hereby declare that this report has not been submitted for the award of any

other degree of M.G. University.

KISHORE RAVEENDRAN



TABLE OF CONTENTS

Sl.No Chapters Topic 1

Chapter 1

Chapter 2

Chapter 3

SCOPE AND METHODOLOGY OF STUDY

2 OBJECTIVES OF THE STUDY

3 LIMITATIONS OF THE STUDY

4 INTRODUCTION

5

INDUSTRY PROFILE

6 INDIAN SHIP BUILDING INDUSTRY

7 INDIAN SHIP BUILDING INDUSTRY

8 COMPANY PROFILE

9 STAGE VISE DEVELOPMENT

10 GRAWTH TO INTERNATIONAL SHIPYARD

11 SHIP BUILDING

12 SHIP BUILDING INCOME (Graph)

13 SHIP REPAIR

14 SHIP REPAIR INCOME (Graph)

15

Chapter 4

FINANCE DEPARTMENT

16 Profit and Loss Account

17 BALANCESHEET

18 FINANCIAL HIGHLIGHTS

19

MAJOR FACILITIES AND ASSETS

20

BUSINESS DEVELOPMENT DEPARTMENT (MARKETING)

21 PERSONNEL AND INDUTRIAL RELATIONS DEPARTMENT (HUMAN

RESOURCE)

22 RECRUITMENT POLICY IN CSL

23

PERFORMANCE APPRAISAL OF WORKMEN

24

MARINE ENGINEERING TRAINING INSTITUTE (METI)



25

SHIP DESIGN DEPARTMENT

26 SAFETY AND FIRE SERVICE DEPARTMENT

27 INSPECTION & QUALITT CONTROL DEPARTMENT

29

SINGLE BID TENDER

30 TWO BID TENDER

31

SHIP REPAIR DEPARTMENT

32 VIGILANCE DEPARTMENT

33 MEDICAL CENTRE

34 STORE DEPARTMENT

35

Stores Department Table

36

UTILITY AND MAINTENANCE DEPARTMENT 8

37 PROJECT DEPARTMENT

38

OFFICIAL LANGUALE IMPLEMENTATION CELL

39 .

INSPECTION & QUALITT CONTROL DEPARTMENT

40 AIR DEFENCE SHIP AND MATERIAL PLANNING DEPARTMENT

41

Chapter 5

Chapter 6

SWOT ANALYSIS

42 CONCLUSION

43 FINDINGS

44 SUGGESTIONS

45 BIBLOGRAPHY



LIST OF FIGURES

SL.NO CONTENTS No Of

Figure

1. Ship Repair Income 3.1

2. Ship Building Income 3.2

3. Bill structure 4.1

4. Profit and Loss Account for the year ended 31st March 2012 4.2

5. Balance Sheet as on 31st March 2012 4.3

6. Financial Highlights 4.4

7. Major Facilities of assets 1 4.5

8. Major Facilities of assets 2 4.6

9. Performance Appraisal for workmen 4.7

10. Performance Appraisal foe Executives 4.8

11. Department Structure of Personnel and Industrial Relations

Department (HR)

4.9

12. Marine Engineering Training Institute (METI) Structure 4.10

13. Department Structure of Ship Design Department 4.11

14. Department Structure of Safety and Fire service Department 4.12

15. Department Structure of Information Systems Department 4.13

16. Department Structure of Materials Department 4.14

17. Single Bid Tender 4.15

18. Two Bid Tender 4.16

19. Department Structure of Ship Repair Department 4.17

20. Stores Department Table 4.18

21. Department Structure of Utility and Maintenance Department 4.19



CHAPTER 1



SCOPE AND METHODOLOGY OF STUDY

The Study in Cochin shipyard Limited was done from 1st June to 15

th June,

2013. Both primary and secondary data were used for the completion of Organizational Study.

Primary Data was mainly collected through direct conversations between AGMs and DGMs

in the departments, and also staffs and trainees very much helped to build up this study.

Secondary Data were collected from the company website (www.cochinshipyard.com),

relevant books and documents such as Certified Standing Order, Settlement Of Amendment

(1973-2010), Performance Appraisal Form, Annual Report 2011-2012, previous Reports etc.

Also I did a small job, i.e. Sorting of Applications of Rejected Candidates. It is very much

helped me to understand the Recruitment Policies and Methodology. Mainly the candidates are

rejected because of the shortage of Experience, No relevant Certificates, No proof for himself.

And any candidates who have the experience and proper Proofs will be accepted.

During this time there is another 3 persons from other colleges to do the same Organizational

Study with me. They helped me and I also helped them.

OBJECTIVES OF THE STUDY

To familiarize the students with a business organization

To familiarize them with the different departments in the organization and their

functioning.

To enable the students to understand how the key business process are carried out in

organizations.

Understand how information is used in organization for decision making at various

levels and

To provide a link between theory with practice.

http://www.cochinshipyard.com/



LIMITATIONS OF THE STUDY

► Allotted time given by college is too short. June1-15. I got only 12 days. (Because 2

Sundays and 1Second Saturday). June is the busiest time in CSL because of half

Yearly Financial Statements making and Parliamentary Board Meeting.

► Material Department has the Negative approach to Managerial Trainees. So I used

only secondary data to make the report of that Department.

► I tried 7 days to get an appointment between Finance Department, and I got it in the

7th

day. I lost half an hour in each my valuable 6 days.

► DGMs/AGMs didn‟t give me the time that I expected to ask questions.

► Laptop is not allowed in CSL by Security reasons, if is not banned, I will be more

comfortable and I just want few time for preparing this report.

► No specific Guiding from anyone.



CHAPTER 2



INTRODUCTION

Cochin Shipyard was incorporated in the year 1972 as a fully owned Government of

India company. In the last three decades the company has emerged as a forerunner in the Indian

Shipbuilding & Ship repair industry. This yard can build and repair the largest vessels in India. It

can build ships up to 1,10,000 DWT and repair ships up to 1,25,000 DWT. The yard has

delivered two of India‟s largest double hull Aframax tankers each of 95,000 DWT. CSL has

secured shipbuilding orders from internationally renowned companies from Europe & Middle

East and is nominated to build the country‟s first indigenous Air Defense Ship.

Shipyard commenced ship repair operations in the year 1982 and has undertaken repairs

of all types of ships including up gradation of ships of oil exploration industry as well as

periodical layup repairs and life extension of ships of Navy, UTL, Coast Guard, Fisheries and

Port Trust besides merchant ships of SCI & ONGC. The yard has, over the years, developed

adequate capabilities to handle complex and sophisticated repair jobs.

The Shipyard also trains graduate engineers to marine engineers who later join ships both Indian

and foreign as 5th Engineers. 100 are trained every year.

COCHIN Shipyard Ltd. launched the third Fast Patrol Vessel (FPV) being built for the

Indian Coast Guard (ICG). The vessel is the third in a series of 20 numbers FPVs contracted by

CSL for the ICG. The contract was signed in 2010 with delivery of the last vessel slated for

2017. The vessels are being built under the dual classification requirements of ABS and IRS. The

50 metre x 7.6 metre x 4.65 metre vessels have a designed speed of 33 knots. The primary role of

the vessel include fisheries protection and monitoring, patrol within exclusive economic zone

(EEZ) and coastal patrol, anti smuggling, search and rescue operations and for anti piracy

operations. The vessels have a secondary role of providing communication link & escort convoys

during hostilities and war time. These high speed Fast Patrol Vessels, though small in size are

extremely complex and technologically challenging. The ships are propelled by water jets to

attain a speed of 33 knots. The high speed boats are weight sensitive and extensive use of

Aluminium in the super structure has been made. Cochin Shipyard has developed special

techniques to ensure high quality welding and fabrication of Aluminum structures.



CHAPTER 3



INDUSTRY PROFILE

Ship building and ship repair has accelerated the economic growth of several

countries in the near past; ship building has played a significant role in Economic development

of Japan, South Korea and China. South Korea continues to enjoy the lion‟s share of the world

ship building and likely to keep this supremacy for at least another 10 years. Japan is number

second. China is in the 3rd

spot. The distinct feature of this industry is that it can provide

immense opportunities, to a very wide cross section of population viz, unskilled, semi-skilled,

Highly Skilled hi-tech as construction of ship entails wide variety of jobs from plumbing,

Carpentry, Painting, Cleaning to CAD/CAM designing the precision engineering. If we are

aiming at balanced and resilient economic growth, the best bet is ship repair industry. The

shipbuilding and repair section which was experiencing an unprecedented boom till September

2008, encountered sudden and very scenario recession in the market from October 2008

onwards, Freight rates have come down to unbelievable leaves . Suddenly ship owners ran out of

cash options with a meltdown in financial market and bankruptcy of esteemed institutions.

Shipyard now has no new for almost 4 months and need to protect its cash outflow.

However when the immediate cause of this sudden down turn viz- bankruptcy of

some esteemed financial institution and consequences there on are set right, market is likely to

pick up again owing to the inherent strength and prospectus of the sector. The dynamic increase

in global trade, witnessed in recent times with opening up of many economies increased energy

requirement leading to offshore support and IMO (International Maritime Organization)

regulation for replacement of all single hull taker to double hull are some of the factors which

would contribute long term favorable outlook.

Other factors that prompt ship building and ship industry are,

1. It is a strategic sector of equal prominence as Agriculture; Ships are the only established

means of transport in International trade for the last 100 years and will remain so far

years to come. Lack of ship building and ship repair capability would undermine

inherent economic strength of the nation just as agriculture is nourished at all cost, ship

building and repair also be nourished for economic resilience and Trade of India.

2. India has abundance of primary requirements in this industry such as;

1) Low Cost Labour

2) Long Cost Lines

3) Adequate qualified engineers and technical hands at reasonable cost

4) Long Maritime Traders



INDIAN SHIP BUILDING INDUSTRY

The Indian ship building Industry was reserved for public sector under Intellectual

Property Rights of 1956, and thus protected from both foreign and domestic competitions.

India has 23 shipyards, of which 7 are under administrative control of the Central Government,

2 with State Governments, and the rest in the private sector.

The assured support from Shipping Corporation of India and other private companies, the

domestic ship building industry was shielded from competition and hence plays little attention

towards productive issues. At present private sectors such as L&T Shipyard, Bhatathi Shipyards

have emerged in shipbuilding activities Gornlarhe Ocean going ships.

India is in an advantageous position with its lower man-hour recovery rate compared with

most of the other maritime nations. The policy should aim at exploiting the lower wage cost. The

labour cost advantage is visible but the cost of capital is very high in Indis compared with other

maritime nations.

The strategic option for domestic industry is to raise the productivity levels to outweigh the

capital cost advantage of advanced maritime nations.

Ship building industry should avail the benefits of emerging liberalization environment to

deliver ships in time. With changing priorities of Government of traditional maritime nations the

subsidies extended to ship building industry appears to be withering away.

Coupled with high wage rates ship building industry will relocate in low wage countries in the

medium and long term.

The domestic industry must be in a position to top this medium to long term opportunity in

the global market.

Current and future market situation

• The Indian shipbuilding industry has around 28 shipyards comprising of 8

public sector, 6 yards under central and 2 under state governments with

around 20 private shipyards.

• The Indian shipbuilding turnover for both the private and public shipyard

sector reached 1.6 billion dollars in 2010.

• Government owned Cochin Shipyard Limited and Hindustan Shipyard Limited

are the major shipyards in India.

• Private shipyards are more in numbers, but are severely limited by capacity

and size of ship they can build.

• The Indian ship building industry does not only produce Indian and

International cargos, but also provides facilities such as ship repairing.

• The Indian shipbuilding industry is estimated to double from its 2010 revenue

of $1.6 billion in the next five years.



Main Segments in the Indian Shipbuilding Industry

Shipbuilding industry is mainly divided into the following:

New ship building yards

• New building ship yards are mainly active in building commercial and defence

vessels

• Commercial vessels are mainly built for European owners and Defence

vessels are for Indian Navy

• Ship yards mainly build vessels for European owners

• Major yards are ABG Shipyard, Bharti Shipyard, Modest, Pipavav Shipyard, L&T

Shipyard, Cochin Shipyard, etc

• Ship repairing

• Indian ship repairing industry consists of around 7 ship repair units (SRU‟s), namely

Alcock Ashdown & Co. Limited, Chennai Port Trust, Hindustan Shipyard Limited,

Mumbai port Trust, Cochin Shipyards, Garden Reach Shipbuilders and Mazgaon

Dock Limited who have been given the permanent approvals as SRU‟s.Ejvind Vøgg – Own Man

in India

Major shipyards in India •ABG Shipyard

•Alcock Ashdown

•L&T Shipyard

•Pipavav Shipyard

•Bharati Shipyard

•Chowgule &

Company

•Goa Shipyard

•Bharati Shipyard

•Mazgaon Dock

•Hindustan Shipyards

•Cochin Shipyard

•Tebma Shipyard

•Garden Reach Shipyard

•Hooghly Docks

Note

•ABG has 2 shipyards in Gujarat

•Bharati Shipyard has 3 shipyards in Maharashtra



COMPANY PROFILE

Cochin Shipyard Limited (CSL) is a growing International

Shipyard focused on delivery of quality ships on time. It has a good customer base and product

profile. Health and environment practices are world class and workforce has a high morale and

motivation level displaying a strong some of belongingness the company.

Vision

“Ours in an endeavor to emerge as an internationally competitive yard and facilitate to

emergence of India as a dominant Ship Building and Ship Repair centre of the region. Cochin

Shipyard promises you quality service, outstanding workmanship, timely delivery, reliable

personnel and excellent coordination that do not leave you feeling at sea…”

Management Team

Cochin Shipyard Limited



Mission

To Build and Repair vessels to International Standards and provide value added engineering

services.

History

Cochin shipyard was conceived of in the year 1969 when a team surveyed various

locations in India before selecting Cochin for the launch of the first Greenfield Shipbuilding

Yard in the country. The yard facilities in the first phase were completed by 1982. The yard was

designed and constructed under technical collaboration with M/s Mitsubishi Heavy Industries

(MHI), Japan. The company was legally incorporated in the year 1972. The yard commenced the

ship building operations in 1978, Ship Repair in 1981, Marine Engineering Training in 1993 and

Offshore Up gradation in 1999. Cochin Shipyard‟s recent success in securing export orders have

been achieved through consistent improvement in productivity and also aggressive marketing

undertaken in the last few years. The yard could reduce the average time of construction of large

ships in the last decade through augmentation of facilities, up gradation of ship design

department with installation of Tribon and CAD/CAM software and adoption of Integration Hull

Outfitting and Painting system (IHOP) of construction. The Shipyard commenced Ship Repair

operations in the year 1982 and has undertaken repairs of all types of vessels including up

gradation of ships of oil exploration industry as well as periodical lay up repairs and life

extension of Ships of Navy, UTL, Coast Guard, Fisheries and Port Trust besides merchant fleet.

The yard has, over the years, developed adequate capabilities to handle complex and

sophisticated repair jobs.

NUTSHELL

1. Cochin Shipyard was conceived of in the year 1969 when a team surveyed various locations in

India before selecting Cochin for the launch of the first Greenfield Shipbuilding Yard in the

country.

2. The yard facilities in the first phase were completed by 1982. The yard was designed and

constructed under technical collaboration with M/s Mitsubishi Heavy Industries (M.H.I), Japan.

The company was legally incorporated in the year 1972.

3. The yard commenced the shipbuilding operations in 1978, ship repair in 1981, Marine

Engineering Training in 1993 and Offshore Up gradation in 1999.

4. Cochin Shipyard‟s recent success in securing export orders have been achieved through

consistent improvement in productivity and also aggressive marketing undertaken in the last few

years .



5. The yard could reduce the average time of construction of large ships in the last decade

through augmentation of facilities, up gradation of ship design department with installation of

Tribon and CAD/CAM software and adoption of Integrated Hull Outfitting and Painting system

(IHOP) system of construction.

6. The shipyard commenced ship repair operations in the year 1982 and has undertaken repairs of

all types of vessels including up gradation of ships of oil exploration industry as well as

periodical lay up repairs and life extension of ships of Navy, UTL, Coast Guard, Fisheries and

Port Trust besides merchant fleet. The yard has, over the years, developed adequate capabilities

to handle complex and sophisticated repair jobs.

Strategic Tie-Ups

7. CSL has established tie-ups with select specialist firms from near-east, far-east, South-east,

Europe and USA for technology transfer & material packages for shipbuilding, shiprepair,

platforms, rigs & upgradation of yard facilities

Board of Directors

Cmde K Subramanyam : Chairman & Managing Director

Ravikumar Roddam : Director (Finance)

P. Vinayakumar : Director (Technical)

Capt. R. S Sunder : Director (Operations)

M.C Jauhari, IAS : Official Part Time Director,

Joint Secretary (Shipping), Ministry of Shipping

L. N Vijayaraghavan, IAS (Retd) : Non Official Part Time Director

S. K. K Krishnan, Vice Admiral (Retd) : Non Official Part Time Director

M. Raman, IAS (Retd) : Non Official Part Time Director

Company Secretary

Smt V. Kala

Management Team

Jose Mathew : Executive Director (Design)

Baby Thomas : Executive Director (Materials)

Joe Joe Peter : Chief General Manager (Planning & IQC)

Sunny Thomas : General Manager (Technical)

Paul Ranjan : General Manager (Finance- 1)

N. V suresh Babu : General Manager (Ship Repair)



Madhu S Nair : General Manager (Marketing)

Bejoy Bhaskar : General Manager (Defence Projects)

K .J Ramesh : General Manager (Human Resource)

T.N Sudhakar : General Manager (Finance- 2)

Murugaiah .M : General Manager (Hull and HE)

M.D Varughese : General Manager (Industrial Relations & Administration)

K.I Koshy : General Manager (Materials)

Bankers

State Bank of Travancore

State Bank of India

Syndicate Bank

Union Bank of India

Auditors

M/s Menon & Ayyar

Charted Accounts, Ernakulam

Registered Office

Cochin Shipyard Limited

XXXXIX/6080, Administrative Building,

Perumanoor

Kochi- 682015, Kerala, India



Stage Vise Development

1971-1981

During the 1st decade the yard contracted to build three bulk carriers, one for Shipping

Corporation of India, one for Ratnakar Company and 3rd

for Chowgule steamship. First two or

three year‟s project implementation was at full stream and therefore the actual operation

commenced only in the later years. Only one ship was delivered in this decade. The 1st bulk

carrier “Rani Padmini”, delivered on 24th

July 1981. The accumulated loss on the first decade

was 13 Crores of Rupees.

1981-1991

During this decade shipyard commenced the ship repair activities, shipyards increased

losses on ship building is mainly due to the pricing policies existing on that time. The cumulative

losses increased to 166 Crores of rupees in 1991, during this decade shipyard delivered 5 ships

includes four bulk carriers and one oil tanker.

1991-2001

Commencement of this decade ship yard had an accumulated loss of Rs 166 Crores,

considering this Government of India approved for capital restructuring on March 1994, during

this decade yard marketed its ship repairing facilities globally and developed ship repair as a

major stream of revenue. As a result of these activities yard started generating revenue and

getting profit from 1994-1995, and wiped out its entire accumulated loss in March 2003. During

this decade shipyard was able to deliver one oil tanker, three tugs five patrol boats to various

Indian owners.

2002-2008

The main achievement of Cochin Shipyard in the last six years was gaining a foray in to

international market; yard delivered one barge for NPCC Abudabi, this period only yard was

nominated to build the first Indigenous Aircraft Carrier for Indian Navy.



GRAWTH TO INTERNATIONAL SHIPYARD

The growth of CSL has been a phenomenon since 2002. The decision to compete globally

acted as catalyst. The first small order was completed six days ahead of schedule sending a

signal in market of CSL‟s capability and determination. A nine-ship order from sand Arabia

followed:

When first three of these nine performed very well and delivered on schedule CSL was a force to

reckon with. A huge order of six bulk carriers from a major ship owner valued at over 700 Cr

followed. These were delivered from months ahead at schedules heralding the yard‟s arrival in

global market. Orders for 35 ships poured in.

CSL which has originally building one ship every three years was delivering 5-7 ships a year. At

present CSL has more than 20 PSV in its order book contracted to deliver beyond 2010. All

these orders are for foreign owners from various nations like UK, US, Norway, Greece etc.

SHIP BUILDING

CSL has been achieved full capacity utilization in last two years. In last 3 years, the

yard has delivered 6 bulk carriers, Nine fire fighting tugs and eight platform supply vessels

(PSV) for various international owners.

The company could achieve a total ship building income of Rs 1260 Crs during 11-

12 as against 1320 Crs in 10-11.



SHIP BUILDING INCOME

Fig 3.1

(Rs in Crores)

SHIP REPAIR

Commenced in 1982 and till date about 1800 vessels have been repaired. The company

has undertaken repairs of all type of ships including up gradation of ships of oil exploration

industry as well as periodical lay-up repairs and life extension of ships if Navy, Union Territory

of Lakshadweep, Cost Guard, Fisheries and Port Trust besides merchant ships of Shipping

Corporation of India (SCI), Oil and Natural Gas Corporation (ONGC) etc. The existing ship

repair Dry Dock can accommodate 125000 DWT vessels. The yard ventured into offshore

repair/up gradation business in 1999. CSL undertakes clapmon projects, fabrication and

installation of new platforms and revamping of existing platforms. The yard has over the years

developed adequate capabilities to handle complex and sophisticated repair jobs.

During 20007-08 , CSL diversified into the offshore and dredging market and

undertook repairs to the oil rigd Sagar Bhushan of ONGC, oil rig trident for M/s Transocean,

USA and Dredgers Sagar-Hansa for Vanword ACZ shipping Management, Denmark and

Aquarus for Dredging Corporation of India. In the current year, the yard has also undertaken a

project for conversion of fishing vessel to seismic Research Vessel for M/s Nordic, Singapore.

0

200

400

600

800

1000

1200

1400

2007-08 2008-09 2009-10 2010-2011 2011-2012



Cochin Shipyard could achieve a ship repair turnover of Rs.252.14 Crores during 2007-

2008 as compared to Rs 241.53 Crores in 2006-07, i.e 5% increase.

SHIP REPAIR INCOME

(Rs in Crores) Fig 3.2

0

50

100

150

200

250

300

2007-08 2008-09 2009-10 2010-11 2011-12



CHAPTER 4

DEPARTMENT STUDY



FINANCE DEPARTMENT

In the modern concept Finance is not only a Life blood of the business; it is the

„LIFE‟ of the business. The finance department in CSL plays an important role enhancing the

efficiency and overall improvement of the organization it is the department, which controls the

procurement and allocation of funds the business operations. In CSL, the financial department is

common to all department of the organization. It is working with the Director Finance as the

head.

FUNCTIONS

Management of funds including working capital and transacting business with Banks and

other financial institutions, managing all transactions relating to foreign exchange etc.

Participation in negotiations with unions/associations for finalization of proposals for

revision of wages, salaries, other perquisites etc.

Evaluation of Investment proposals, project appraisals etc, with specific reference to

finance perspective and examination of all proposals for financial concurrence and giving

suggestions to effect economy.

To submit all information as required by Government and to other statutory authorities.

Preparation of Annual budget/MOU with Government.

Payment to suppliers, contractors, employees and other agencies.

To report to CMD matters which have adverse impact on the working of the company.

To organize and conduct statutory audit, internal audit, Income Tax audit, Sales Tax audit

etc.

To attend to C&AG audit queries and reviews and related matters.

Attending to Tender Committees/negotiations.

To maintain proper books of accounts of the company as prescribed by Law and to

comply with statutory provisions with regard to Companies Act/ Accounting Standards.

To render advice to CMD/HOD on all matters having any financial implications.

Compliance of provisions, procedures and rules with reference to various taxations and

other Acts.

Finalization of accounts and audit of the same and declaration of annual financial results.

Attending to all tax matters relating to the Company.

Attending to issues arising from operation of shipbuilding and other contracts.



DIFFERENT SECTIONS

† ADS Finance

† Central Accounts

† Financial Planning

† Bills Section

† Ship Repair Finance

† Ship Building Sections

† Establishment

† Taxes & Invoice

† Cash

† Internal Audit

ADS FINANCE

Scrutiny and payment of bills relating to procurement of materials of Capital & Revenue

nature and payment to ADS.

Attending to Tender Committees/ PNC.

Payment of WOT Expenditure.

Preparation of Annual Budget of ADS.

Preparation and Submission of bills to Navy-Infrastructure/ Cost Plus.

Liaison with WOT/ Navy.

Vouchers processed.

CENTRAL ACCOUNTS

Maintaining proper Books of accounts.

Preparation of Financial Statements in

Compliance with Companies Act 1956 and Accounting Standards etc and to present

periodical accounts to the Board.

Arranging Audit of accounts by Statutory Auditors and C& AG.

Costing and compilation of cost information on periodic basis.

Material Accounting

Fixed Asset Accounting

Preparation of periodical reports.

Maintenance of records relating to machine utilization, labour utilization etc.



BILLS

» Concurrence of all purchase proposals.

» Work relating to tender committee.

» Scrutiny and payment of bills relating to procurement of materials of Capital and

Revenue nature.

» To arrange foreign remittances with Income tax clearance.

» Scrutiny and payment of Customs duty, freight charges etc.

» Arranging payment of temporary advances/ imprest / Cash purchase.

» METI (Marine Engineering Training Institute) receipts and payments of METI

expenditure.

» Valuation of GRV and reconciliation.

» Maintenance of Vendor Ledgers under ERP.

Fig 4.1



FINANCIAL PLANNING

Liaison with Banks.

Arranging Short term Loans.

Preparation of MOU.

Preparation of Budget (Capital & Revenues) and Budgetary Control.

Preparation of Annual Plan.

Preparation of periodical reports.

Ensure that Cash and Bank balance position is adequate for the smooth

operation of business.

Undertake Short-Term and Long-Term fund requirement planning and initiate

action for any shortfall or surplus.

Treasury operations and management.

Foreign currency transactions and hedging.\

SHIP BUILDING FINANCE

► Scrutiny and payment of bills relating to Civil, U & M, SBOC, SSD and IQC.

► Concurrence of all proposals of Civil, & M, SBOC, SSD and IQC.

► Settlement of Temporary advance & settlement.

SHIP REPAIR FINANCE

Material Accounting of Ship repair

Settlement of Temporary advance & settlement.

Scrutiny and processing of Ship Repair bills relating to Materials, sub contract and other

expenditure

Attending to tender committees for finalizing subcontract of SR.

Scrutinizing purchase proposals/ works contracts.



ESTABLISHMENTS

Employees Income Tax recovery, issue of IT certificates and remittance and preparation

of annual returns.

Maintenance of Provident Fund Account of all employees and final settlement of PF,

Gratuity and other retirement benefits.

Scrutinizing and payment of bills relating to establishment expenses like stationary,

telephone, canteen, advertisement, entertainment etc.

All payment relating to employees.

Payments to Trainees/ Contract workers.

Payment of CISF establishment.

Scrutinizing and paying PF advance.

Maintenance of transactions connected with Family Pension Fund and DLI.

TAX AND INVOICE

Preparation of Invoices other than SR.

Arranging Insurance.

Maintenance of Sundry Debtors and follow up of receivables.

Handling of matters relating to VAT, Central Excise and Service Tax.

Attending to IT, VAT, customs cases/ appeals.

Handling matters relating to Central Excise/ Customs.

Handling of matters relating to Service tax.

Arranging of Income Tax audit, Sales Tax audit and filling of returns/ appeals.

Ship Building contracts.

Attending to Tender Committee for scrap sales.

Ship Building subsidy.

CASH

⇋ Receipt, payment and safe custody of cash, cheque, DDs, Bank Guarantee etc.

⇋ Preparation of Cheque – arrange DD/TT etc.



INTERNAL AUDIT

☞ Preparation of internal Audit Programme.

☞ Liaison with Internal Auditors.

☞ Attending to Government audit queries.

☞ Collection of data from various departments and preparation of draft reply.

☞ Liaison with audit Committee.

☞ Surprise verification of Cash.

☞ Preparation of annual progress reports for Statutory Auditors/ Government Auditors.



Profit and Loss Account

For the year ending 31st March 2012 (In Lakhs)

Particulars Note No For The Year ended 31st

March 2012

For The Year Ended

31st March 2011

1.Revenue From Operations

2.Other Income

3. Total Revenue

4. Expenses

Cost of Materials Consumed

Changes in Inventories of work

in progress

Sub Contract and other Direct

Expenses

Employee benefits expense

Finance Costs

Depreciation and Amortization

Expenses

Other Expenses

Provision for anticipated losses

and expenditure.

Total expenses

(Less) Expenses Allocated to Capital Works

5. Profit Before Tax (3-4)

6.Tax Expenses

Current Tax

Deferred Tax

Prior Year Tax Adjustment

7.Profit Of The Year

18

19

20

21

22

23

24

25

26

27

10

140485.15

7669.33

148154.48

167192.58

1699.99

21607.03

16611.22

1312.09

1807.27

12011.30

616.07

122857.55

0.00

122857.55

25296.93

7713.61

1340.90

(990.27)

17232.69

146171.53

12745.88

158971.41

71590.08

(1362.79)

19373.99

16649.62

2898.09

1705.60

122665.80

995.96

124516.35

2.91

124494.44

34422.97

8711.20

2959.00

0.00

22752.77

Fig 4.2



BALANCESHEET

As on 31st March 2012 (In Lakhs)

Particulars In.N

o

As 31st March 2012 As 31

st March 2011

1.EQUITY AND LIABILITIES

1.Shareholders funds

Share Capital

Reserves and

surplus

2.Non Current Liabilities

Other Long Term

Liabilities

Short-Term

Provisions

TOTAL

2.ASSETS

1.Non Current Assets

FIXED

ASSETS

Tangible

Assets

Intangibl

e Assets

Capital

In Work-

In-

Progress

Current

Investme

nts

2

3

4

7

8

9

10

11

15242.20

89841.05

492.22

18560.23

260238.39

19247.99

12.95

6361.79

19.18

19242.20

77537.57

980.75

28153.42

255659.18

19035.57

31.91

3717.00

19.18



Differed

Tax

Assets(N

et)

Long

Term

Loans

and

Advance

s

Other

Non-

Current

Assets

2.Current Assets

Inventories

Trade

Receivables

Cash and Bank

Balance

Short Term

Loans and

Advances

Other Current

Assets

TOTAL

Significant Accounting Policies

Other Notes on Accounts

12

13

14

15

16

17

1

29-40

971.57

613.79

5745.99

36253.66

77992.10

90889.60

14164.15

7965.62

260238.39_____________

2312.47

611.43

8125.13

23475.88

110260.53

69025.09

7337.84

11657.15

255659.18___________

Fig 4.3



FINANCIAL HIGHLIGHTS

Fig 4.4

Particulars 2001-

2002

2002-

2003

2003-

2004

2004-

2005

2005-

2006

2006-

2007

2007-

2008

2008-

2009

2009-

2010

2010-

2011

2011-

2012

Turnover 210.25 235.16 228.44 276.48 375.53 719.74 833.79 1256.21 1248.50 1461.72 1404.85

Total Income 253.84 282.07 267.94 323.31 452.89 845.64 857.17 1383.26 1326.49 1589.17 1481.54

EBDIT 36.62 35.72 37.18 28.03 43.79 104.17 162.66 276.42 364.68 390.27 284.16

Depreciation

and Write

offs

5.40 6.80 6.47 7.24 10.62 7,89 9.69 9.80 15.24 17.06 18.07

Profit After

Tax (PAT)

16.41 16.49 17.78 12.10 18.23 58.11 93.85 160.07 223.04 227.53 172.33

Equity Share

Capital

111.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28

Reserves &

surplus

15.68 25.86 34.19 36.83 55.06 93.67 199.64 336.70 490.54 775.38 898.41

Net Worth 245.43 255.66 264.03 266.62 284.85 323.45 429.43 566.49 680.32 967.8 1050.83

Gross Fixed

Assets

198.86 205.00 195.86 204.65 206.92 217.18 206.92 233. 349.68 362.10 376.73

Net Fixed

Assets

84.92 86.30 74.09 78.30 76.33 81.91 92.16 121.64 189.75 190.67 192.61

Number Of

Employees

2232 2189 2175 2109 2075 2084 2059 1962 1907 1818 1900

Earnings Per

Share (EPS)

147.47 145.57 156.96 106.81 160.97 513.00 828.51 14.13 19.69 20.09 15.21

Face Value

Per Share

1000 1000 1000 1000 1000 1000 1000 10 10 10 10

EBDIT/ Gross

Turnover (%)

17.4 15.2 16.3 10.1 11.7 14.5 19.5 22.0 29.2 26.07 20.21

Net Profit

Margin (%)

7.80 7.01 7.78 4.38 4.88 8.07 11.26 12.74 17.86 15.57 12.27

Return on Net

Worth (%)

6.74 6.45 6.73 4.54 6.40 17.97 21.85 28.26 32.78 23.51 16.40

Return on

Capital

Employed (%)

4.22 4.28 4.33 20.45 3.65 11.70 23.28 29.09 38.57 27.44 18.76

Capital

Employed

389.25 392.75 410.98 493.63 499.64 496.60 401.33 550.31 578.32 829.27 918.68



MAJOR FACILITIES AND ASSETS

Facilities and Assets Details

Land 170 Acres

Cranes 71 Nos

Quay 1 for Repair 290 m

Quay 2 for Repair 208 m

Quay 3 for fitting out 460 m

Covered Shop Area 35000 Sq.m

Steel Stockyard 13000 Sq.m

CNC Plasma Cutting Machine 2 Nos

Steel Fabrication Facility 2000 Tonnes per Month

Marine Coating Shop

Fig 4.5

Docks Size Capacity Range

1 270x45x12m 125000 DWT 2010 & 5t

2 255x43x9m 110000 DWT 150 7 50t

Fig 4.6



The company achieved a turnover of Rs.1405 Cr with a PAT of RS.172Cr. the company

contributed RS.111 Cr to the National Exchequer by way of VAT, Income Tax, FBT, Excise

Duty, Customs Duty and Service Tax. The yard is proposing to declare a dividend of Rs.5 Per

share on the 11,32,80,000 fully paid equity shares of Rs,10 each and Rs.70 per share on the

3,91,420, 7% Preference Shares of Rs.1000 each for the year 2011-2012. The total outgo on the

dividend and the dividend tax is approximately Rs.23 Crs. The company has also redeemed

4,00,000, 7% preference Shares amounting to Rs.40 Crs during the year 2011-2012. With this,

the preference share capital of the company to be redeemed before 2015 would be Rs.39.14Crs.

Financial Performance

Cochin Shipyard Limited (CSL) continued to achieve good performance in the year 2011-

2912 albeit a marginal reduction in the turnover and profits. The turnover for the year was

marginally lower at Rs.1404.85 Crores as compared to Rs.1461.72 Crores in the year 2010-2011.

The net profit was Rs.172.33 Crores as compared to Rs 227.53 Crores for the previous year. The

performance is creditable considering the economic recessionary conditions and the downturn in

the shipping and ship building sector. The reductions in the profits and turnover during the year

were owing to several factors, primarily due to the reduction in turnover from Indigenous

Aircraft Carrier (IAC) and the lack of ship building subsidy.

Cochin Shipyard is hopeful of concluding the Phase 2 contract with the Ministry of Defense

(Navy) for IAC in the near future. The yard is also on the threshold of signing a contract for one

multipurpose vessel for the Director General of Lighthouses and Lightships. Discussions with

ONGC are in an advanced stage to secure an order for a multi streamer Seismic survey vessel.

The lack of fresh ship building orders due to the continued oversupply in the shipping market is

of concern.

DIVIDEND

The Directors are pleased to recommend a dividend of Rs.1.5 per share on the 11, 32,

80,000 fully paid Equity Shares of Rs.10 each and Rs.70 per 3, 91,420 Preference Shares of

Rs.1000 each for the year 2011-2012. The total outgo for dividend and dividend tax would

be approximately Rs.22.93 Crores.



BUSINESS DEVELOPMENT DEPARTMENT (MARKETING)

The BD Division of CSL is unique in itself. Unlike marketing departments in

other companies the BD division of CSL, does not have the usual procedures of advertising.

Never in its lifetime has it got a situation where it had to advertise for its product (Ship). The

major function of the BD division begins when the company is designing a new design or after a

particular customer approaches the company. Let us take each situation separately.

Once the company is making a new Design, the BD division with the help of

shipbrokers finds suitable customers for the ship. But these are not the trend that is being

followed today. The company does not concentrate on designing ship. Rather it buys the designs

from an outside designing company and search for customers.

The next situation is when a customer approaches the company for building ship. This is

the pattern that is followed nowadays in shipyard where a customer specifies all their needs or

core specifications like the speed limits of the ship measured in knots, the facilities within the

ship etc.

In both the cases the customers are given priority in deciding what all should be included

or excluded from the design while building. In the previous situation, even if the company is

giving the design, the customer has the full freedom to finalize upon the design.

It is the duty of the BD division of CSL to select the company from whom the required

equipments are to be bought. The selection is usually made looking the key concept of:

-Technical Specification

-Least Cost.

The usual pattern is to look technical proficiency to a certain extent, just enough to meet the

basic requirement and then select the one which provide at lower cost. Being a public sector least

cost company is given more importance.

Another major function of the BD division is the forward planning. Forward

planning as it means planning for future, it done at the top management level and involves

formulation of strategies and policies. In case of BD division it involves the areas of market

development, market penetration, product development and diversification. CSL has adopted all

three strategies except diversification of its products and services to strengthen its presence in the

global shipbuilding and ship repair business.



Functions

1. Basic Design calculations and Drawings for ships and small crafts.

2. Material cost estimation for ships and small crafts.

3. Computer applications, data bank.

4. Development of Computer programmes for ship design calculations, cost estimation etc.

5. Data collection for technical, details of vessels, material cost etc.

6. Maintain a record of Rules and regulations concerned with shipbuilding and keep track of

its amendments.

7. Updating the design capabilities with the latest trends in design.

Initially the contract between the customer and Cochin Shipyard is made by this

department and the most basic function of the forward design section is to make a basic

design of the ships which is later handed over to the design department, materials

department and the ship building department

Functions of Commercial section

1) Market survey ships, small crafts and other engineering works for utilizing the

installed capacity.

2) Preparation of Quotations.

3) Preparation of Contract documents.

4) Negotiation with owner.

5) Liaison with owners and after sale service/ guarantee repair claims- verification-

Negotiation-Settlement etc.

6) Reporting relevant matters to ministry and other Government agencies

7) Legal opinion, Arbitration proceedings.

The Business Development division of CSL in itself unlike marketing departments

in other companies the BD division of CSL does not have the usual procedures of

advertising. Never in its lifetime has it got a situation where it had to advertise for its

product (ship). The gins, major function of the BD division begins, when the

company is designing a new design or after a particular customer approaches the

company. Let us take each situation separately.



PRODUCT MIX

► Bulk Carrier

► Oil Tanker

► Aframax Tanker

► Clamp-on Structures

► Platform Supply Vessel

► Passenger Ship

► Tugs

► Dredgers

► Patrol Boats and Luxuary Launcher

► Aircraft Carrier

MAJOR SUPPLIERS LIST

Rolls Royce Marine

Karm

Hyndra Marine

TIS

Abas

Aker Brats Vaagwinch

Suezer

CUSTOMERS LIST

Coast Guard

Cochin Port Trust

Customs

Shipping Corporation of India

Essar Shipping Company

French Navy

Indian Navy

ONGC

Fisheries Department

Clipper Group Bahamas

National Institute of Oceanography

National Petroleum Construction Company, Abudabi



MARKETING CHANNELS AND PRODUCT PROMOTIONS

The main marketing channel used by Shipyard is the ship brokers who have under

them 200-300 employees spread all around the world collecting information from MNCs about

the requirements of ships. These MNCs take them into confidence to recommend the name of a

ship building yard which would best suit their requirements.

CSL also advertise themselves in magazines like “Offshore Support Journal” but they

consider it just a method of visibility and not marketing.

MARKETING RESEARCH

The Business Development division of CSL conducts its own market research to know about

the recent trends in the Ship Industry. They mainly have membership and subscribe in sites

having controlled access through payment and provide the updated information on ship building

industry. CSL is also conducting third party research for this purpose. The company is issuing

shipping weekly. A gain the company is taking internet support also for this .The third party

online researchers of the company include Clarkson, Offshore support, Trade Winds etc.

CONTRACT

There are mainly two types of contracts that Business Development division of CSL makers

one contract is design contract and another is ship building contract.

One of the major functions of the BD division of the company is to prepare and design

the ship building contract with the customers. The contract should be supported with the

specification as to which company‟s equipments are to be used while building the ship. For

example, a customer could demand through the specification that, the engine must be bought

from the given companies like Rolls Royce Marine, TTS,Abas. Once the company fails to meet

the specification it could be fined by the customer. The specification will include the demand on

capacity of the ship and also the expected speed. If these too are not satisfied, the customer could

charge fine on the company. The contract also includes the cost, payment terms and warranty

and also delivery date.

Another type of contract that the BD division has to make is the design contract.

This contract is made between the company and the company, which gives the design for the

ship. This contract includes the specification (mainly the technical specifications) cost, payment



terms and the warranty period usually is 24 months from delivery date of the equipment or one

year from the date of vessel delivery.

The contract should include details regarding the following;

Cost Of the ship

Duration of Completion

Date of handing over

Payment terms

Warranty period.

Once the ship is being delivered to the customer, who then become the owner of

the ship, could claim warranty If any defects happen to it, But the claim should be made

within the warranty period. If the defect is on the equipment in the ship, the maker

company will deal it, and If the defect is on the installation, then it will be dealt by CSL.

This is also the duty of the Business Development Division.

PRICING STRATEGY

The CSL is looking is diversify into high value added products such as;

» Dynamically positioned vessels

» Floating Cranes

» LNG Carriers

» Offshore Structure

» Dredger.



PERSONNEL AND INDUTRIAL RELATIONS DEPARTMENT

(HUMAN RESOURCE)

HR VISION

Emanating from the goals and objectives enshrined in the corporate mission statement, the

strategic Human Resource Vision of 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 POLICIES

HR Policies are oriented towards the right mix of HR, their empowerment and enrichment

so as to meet organizational targets and results.

HR OBJECTIVES

Effectively play the role of strategic team member.

Planning for pragmatic man power, induction, re-skilling, deployments and retention of

HR.

Develop and position right mix of person at the right time.

Create, maintain and nurture a healthy employer and employee relations.

Evolve and implement best industrial practices with transparency in approach,

competitive reward and incentive system for excellence in performance.

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



Current HR Status in CSL

The total manpower of the company as on 31 March 2012 was 2017 employees.

HR SYSTEMS

Manpower planning, recruitment and Induction

Carrier development Policies covering all categories

Performance appraisal systems

HR Training and Development

Employee participation

Employer-Employee relations

Reward and suggestion scheme

Attendance Recording and wage Administration

Statutory Obligation towards contract workmen

Welfare and social Commitments.

PLAN OF ACTION

Business Objectives – short term/ Long Term.

Chalk out plans for HR requirements matching current and future business requirements.

Identify core and non core areas of work.

Arriving at right mix for outsourcing work both in core and non core areas.

Continual improvement for Skill and knowledge updation.

Conscious cost cutting measures. Integrated attendance and payroll system.

Extension of offline services.

IT enabled record maintenance and employee self service system.

Total solution for electronic attendance cum access control.

Finalization of productivity linked variable payment scheme.

Sundry and supplementary work.

HR as profit centre.



RECRUITMENT POLICY IN CSL

Executive Recruitment

The recruitment to the executive post in CSL is done on all India basis. The selection process is

done on the basis of the degree or educational qualification, followed by written test and finally

interview.

The weight age for the above said is given as below:

Degree – 50%

Written Test – 30%

Interview – 20%

The test and the interview would be conducted on the same day itself. The results will be

published on the same day itself, after the approval of CMD of Cochin Shipyard Limited.

The executive positions are filled by 50% recruitment from external sources and 50% by

promotions. In the case of promotions to the past of an officer the eligibility to write the

promotion test is as followers:-

For Engineering Degree holders = 6 Years service as supervisor in CSL.

For Diploma holders = 8 Years service as supervisor in CSL.

For ITI holders = 10 Years service as supervisor in CSL.

Workers Recruitment

The Recruitment to the workers post will be done through the employment exchange. As and

when there is a vacancy in the workers post the company informs the employment exchange. As

per the court order, in this regard, the vacancy notification is given in employment exchange and

also an open advertisement is provided in the newspapers. This is also done in an all India basis.

The procedure for selection also includes practical tests.



MANPOWER

Manpower Strength of the company as on 31st March 2012 was 1900, consisting officers,

supervisors and workers. The complement of CSL as on 31st March 2012 is shown in the table

below.

Catagory SC ST OBC PWD Ex

Servicemen/

Dependents

Women Others

Officers 34 9 48 2 7 28 139

Supervisors 26 6 1 5 2 17 148

Workmen 142 25 169 40 17 76 881

Canteen 5 0 51 1 0 3 18

TOTAL 207 40 269 48 26 124 1186

PERFORMANCE APPRAISAL OF WORKMEN

Name Code No: Department

PHOTO

Date of Joining Date of Birth Period from 1st April

31st March

Date of present

Grade

Designation

Nature of Duties

Performed

PART 1 PERFORMANCE FACTORS FOR ASSESSMENT

Description Total

Marks

Marks Given

Initiating

Officer

First

Reviewing

Officer

Final

Reviewing

Officer

1.Job Knowledge and Skill

(a) Intelligence and Ability

to Comprehend

15

(b) Quality Of Work 10

2. Quality of Work

(Rejection Rate,

Accuracy, Promptness,

10



Neatness)

3.Work Attitude

(a) Initiative and

Commitment (Cost

consciousness and

desire to learn)

10

(b) Team work (Co-

operation/ interpersonal

Relationship)

10

(c) Morale- Level of

Enthusiasm

10

4.Dtsciplne

(a) Attendance

(CL+SL+EL=35 Days)

10

(b) Physical Fitness 10

(c) Safety Consciousness 10

(d) Sincerity / Sense of

Responsibility

5

Total 100

RATING AWARDED

5.Integrity

A. Above Board, B. Open to Doubt A B A B A B

Signature

Name

Designation

Date Of Appraisal

RATING

Outstanding (O)- Above 90% , Superior (S)-80 to 89%

Very Good (VG)-65 to 70% Good (G) – 51 to 64%

Fare (F) – 40 to 50% Poor – Less than 40%

PART 2

REMARKS

(to be filled with specific achievements only for those marked Superior and above / drawbacks for

those rated poor)

Initiating Officer

Signature : Designation :



Name : Date :

First Reviewing Officer

Signature :

Name :

Designation :

Date :

Final Reviewing Officer

Signature :

Name :

Designation :

Date :

OVERALL ASSESSMENT- (To Be Filled by Personnel Department)

(a) Average Marks

(b) Grading

Fig 4.7

PERFORMANCE APPRAISAL OF EXECUTIVES

1. Competencies

(a) Subject knowledge

awareness of Duties.

(Responsibilities)

20

(b) Application of

Knowledge in work

15

3. Attitude

(a) Ability to Co-operate

and get along with team

mates.

10

(b) Positive Approach to

work problem

10

(c) Morale-Level of

Enthusiasm

10

4. Leadership

(a) Achievement in Training

and Inspiring

Subordinates.

(b) Capability to assume

higher responsibility

Fig 4.8



DEPARTMENT STRUCTURE

Fig 4.9

PFSO- Port Facility Security Officer

Industrial Canteen – CSEC (Cochin Shipyard Employees Canteen)

AAO- Assistant Administration Officer

Office Trainees (Apprenticeship)

P & IR AD GM HR

Assistant Manager

Supervisor (AAO)

Senior Assiatant

GM IR & Admin (Chief Welfare

Officer)

Hindi Cell PFSO Medical Welfare DGM IR

Deputy Manager

Assistant Manager

AAO

JCA

Industrial Canteen



MARINE ENGINEERING TRAINING INSTITUTE (METI)

CSL also runs a state of the art METI and basic advanced fire fighting courses. Since

inception more than 1000 trainees have passed out of Institution. The institute has been rated

OUTSTANDING by Independent rating Agencies continuously for last 6 years. More than 1000

officers are converted from Mechanical Engineering/ Naval Architecture to Marine engineering

with a 3600 approach to Marine engineering on different types of ships.

The Apprenticeship programme is conducted as per statue (Apprenticeship Act), the

NTAC (National Trade Apprenticeship Council) test is conducted for trainees.

Fig 4.10

APPRENTICESHIP TRAINING

CSL imparts apprenticeship training as per 1961 Act and a consequent revision in 1973 &

1976, as per the Act CSL selects students with National Trade Certificate issued by the

Government of India for apprenticeship training. The different trades under which they are

provided training are:-

Office Trainees

Electrician

Mechanist

Fitter

Painter

Training Institute

Hostel Blocks

Facilitator

Training Institute

Facilitator

FFTC

Facilitator



Instrument Mechanic

Draftsman Mechanical

Pipe Fitter

Ship Wright Wood

The trainees are trained in the above trades for a period of two years. At the end of the training

period all the trainees will have to undergo an all India examination and certificates are issued

for the pass outs. The trainees may be taken as advanced trainees by CSL. It is usually for the

period of 1 to 3 years according to the nature of trade and requirement.

For degree and diploma holders apprenticeship training is imparted according to

Apprenticeship Act 1973. It is one year course and certificates are issued on successful

completion of the training and trainees are sent to different Departments of CSL to have an

exposure according to their qualification and branch in rotation basis minimum for 3 months.



SHIP DESIGN DEPARTMENT

Ship Design Department is the Department of designing the ship. It means it realizes the

expectations of the owner about his ship. In CSL, Design Department and Business Development

Department doing the ship design process. Designing process mainly classified into two.

Primary Designing and Detailed Designing. Primary Design is done through BD Department and

the Detailed Designing is done by SD Department. Every Ship is designed under the rules and

regulations of The International Ship Building Committee.

According to the laws, a ship cannot be change the ownership. So every ship has some

specifications. The owner submits the quotation consist, about Security Systems, Basic

Requirements, Additional Requirements, another extra specifications etc.SD Department shall

raise indents for bought out items as also fabricated items procured from outside.

In the case of work progresses, Ship Design Department mainly divided into 6.

» HSD

» MOD

» HOD

» AOD

» EOD

» Forward Design and Defense Marketing




Fig 4.11

GM

DGM (EOD)

AGM

AM

DM

Manager

AGM

Manager (MOD)

Commercial

AM

DM

Manager

Manager (HSD)

AM

DM

Manager

Forward Design

AM

DM

AGM (D-IAC)

HOD

AM

DM

Manager

Manager (M-ADS)

AM

DM

Manager (AOD)

AM

DM

Office Administrator (Triboon System

Admin)



SAFETY AND FIRE SERVICE DEPARTMENT

Safety and Fire Service Department is doing safety services in CSL. They

provide all the Safety requirements in the yard and in the ship. This department is functioning

under the Indian Factories Act 1948. They are continuously monitoring to the Ship Building

area. They provide the basic safety requirements such as Lights, Ventilators, Switch Boards, and

Tools etc to the Ship Building and the yard area. Safety and fire Service Department have two

sections/ wings.

> Safety Section

> Fire and Rescue Centre.

SAFETY SECTION

Safety Section deals with all the safety requirements in the yard. They ensure Safety

Helmets, Shoes, Lightings, Ventilators, and Oxygen Cylinders, Face Masks, Body Armor, Safety

Belts safety Cloves etc in the work area for the employees. And also they are giving proper

instructions about the safety and its requirements to the workers. They conduct Importance of

Safety programmes to the CSL employees for building up the awareness about safety and

carefulness in the job. Programmes like Seminars, Notices, Pluck Cards, and Flex Boards etc.

FIRE AND RESCUE CENTRE

Fire and Rescue Centre is 24x7 working department in CSL. They provided the

requirements of preventing the Fire. They provided water pipes, fire cylinders etc in the whole

CSL area. And also they have 3 F&R Vehicles which are ready for anytime work. In this

Department they have 23 (17 permanent and 5 Trainees) employees. And also they are

monitoring the electricity equipments and welding materials and their environment for assuring

safety against fire.

Employees working in this section under shift method. Fire and Rescue Department

prepares Reports Monthly/Quarterly/Annually about their working procedures. This will help for

comparison of current and previous data.

Main Functions

Protect CSL from any kind of Fire



Giving Awareness about fire safety

Creating a protective atmosphere in CSL

Make CSL 100% Free from fire

DEPARTMENT STRUCURE

Fig 4.12

DGM

Cheif Security Officer (AGM)

Manager 1 (Fire)

Manager 2 Deputy

Manager

Fire and Rescue Centre

Fire Officer

Assistant Fire Officer

17 Members




The Inspection & Quality Control dept co-ordinates the activities of the various

functional Groups in the Organization such as to have production at the most economic level

without staking product quality and customer satisfaction. Quality Assurance Process:-

Quality Assurance Process starts right when a quotation for components is accepted and the

Information is intimated by planning to I& C. I & QC check the quality of the samples provided

by the suppliers. I & QC finally issues the accept/reject order of quotation.

Once the supplier sends the goods to the stores; Stores on receipt of goods issue Goods

Receipt Inspection Report (GRIR) to I& QC. I & QC checks the quality of components send and

issue the accept/ reject proposal. The inspection report is send to planning as well as concerned

production floor.

If I& QC rejects the component, a Non Confirmation Report, is sent back through the

Material Department. Supplier does necessary servicing of the parts or the replacement of goods.

But If the components has to accepted in spite of rejection offered by I & QC, because of

urgency in production or the concerned part will not harm the assembly or the extra ordinary

delay involved in fresh delivery, The planning Department issues deviation concession note and

gets the approval of I & QC then use the component in Production.

Inventory Control Technique

The Inventory control techniques mainly used are:

1. ABC Analysis

2. Review Stock

3. Standardization

4. Codification (Symbolic approach & Engineering drawing nos.)



Registration of Vendors

After initial vendor list is prepared the following procedures are followed to register their

name in approved list.

1. Application for Registration (forms available in website)

2. Applicants shall satisfy through documentary evidence then financial stability, income

tax clearance, capacity to perform and produce performance certificate from those whom

they are already supplying.

3. Establish office with telephone for direct contact is essentials.

4. The firm‟s premises may be inspected by the officers to verify the quality standards of

products manufacture and other details shown in the application. Performance report

from Government department and PSU‟s will be considered for registration.

5. A reference may also be made about their performance to excising clients. SSI shall

satisfy registration requirement.

Vendor evaluation and rating cards

Vendor Rating Card maintained by CSL for evaluating performance of vendor against each

order. Default in fulfilling the terms and conditions of the order and general faults are recorded

and the performance is renewed every year by Material Department.

Removal and Black Listing of Vendors

The Vendors are temporarily removed from the approved the list depending on gravity of

default.

The vendors may be:

» Put on hold in case of furnishing insufficient or vague information and wasting time

on clarification.

» Blacklisted or delisted If they supply false and misleading information or If found

unreliable in supply.

» Banned If they are bankrupt, insolvent or partitioned.

When negotiating an international sales contract, both parties need to pay as much attention

to the terms of sale as to the sales price. To make it as clear as possible, an international set of



trade terms (INCOTERMS) has been adopted by most countries that defines exactly the

responsibilities and risks of both the buyer and seller including while the merchandise is in

transit. The CSL complies with this.



INFORMATION SYSTEMS DEPARTMENT (ISD)

The most specialty of this department is ISD comes under by the Department of Finance.

Mainly they are doing E-mail creations, Intranet networking and Website updation.ISD in CSL

previously known as Enterprise Resource Planning Department (ERP), provides a basic for

integration of organizational Information processing. All the computer systems in CSL are

licensed or full versioned protected by Symantec, AVG Anti Virus software. All the computer

systems are running by the Operating System of Windows 7. Information System in CSL

satisfies the diverse needs of different departments through a variety of systems such as query

systems, analysis systems, modeling systems band decision support systems. CSL used the IS

system provided by RAMCO ERP applications. It is a general organizational ERP system

satisfies the common objectives and provision for developing the system to various applications

required with their technical support in tune with the economical and the technical feasibility if

the yard. Now Cochin shipyard Limited fully changing to SAP, Information Systems Department

doing all the major procedures of that.

There are 14 permanent employees working in this Department. Executive Trainees will

become Permanent after he fulfills the one year training period.

Fig 4.13

CGM Finance

AGM (IT)

Manager (IT)

Deputy Manager

Deputy Manager Project

Officers

Executive Trainees

Assistant Manager

JCA




Objectives Of Information System in CSL

Handling of a voluminous data.

Confirmation of the validity of data and transaction.

Complex processing of data and multidimensional analysis.

Quick search and retrieval.

Mass storage.

Communication of the Information System to the user on time.

Fulfilling the changing needs of the Information.

MAJOR FUNCTIONAL SUB SYSTEMS

Finance and accounting

There are mainly 6 system modules in CSL to carry over its activities they are:

1. Accounts Payable

2. Accounts Receivables

3. Fixed Asset

4. General Ledger

5. Finance Management

6. Management Accounting

Functional Support:

To conduct financial analysis.

Cost analysis.

All financial transactions of the Company.

Input Transaction and Documents

Transactions are payment and receipts and they are documented through journal vouchers,

bills, debit notes, receipt note and transfer documents and these are documented through the

typical format appropriate to the system.

The objective of production management system is to provide manufacturing services to the

organization. This involves the manufacture of ships of certain specified quality and within

certain costs in a stipulated time fulfilling the promises given to the customer.



Functional Support

1. Production Planning and control.

2. Industrial Engineering.

3. Maintenance and Quality Control.

Input Transaction and Documents

1. Production Programme

2. Production Schedule

3. Process Planning Sheet

4. Job Card

5. Material Requirement etc.

Material Management System

Functional Support:

1. Forecast and Planning

2. Procurement

3. Purchase Ordering

4. Goods receipts

5. Bill passing and Control.

The system modules for Materials Management are:

POMS (Purchase Order Management System); which fails to access to vendor

details.

IMS (Inventory Management System); this gives item details, Receipts, issue,

Adjustments and returns etc.

HR System

The system modules for HR Management are:

Payroll Module

HRM module (Gives employee details).

Functional Support:

Planning personnel requirements.

Analyzing Performance.

Payroll module.

Salary administration etc.



Other Important Specifications

Types of Network: Fiber connected network.

Office Automation: Supported by Ramco ERP System.

Types of Servers: There are mainly 20 servers in CSL. Some of them are;

Mail server.

ERP Server.

Intranet Server.

Tribon Server and modeling.

Web based application server.

Domain controller.

Security Systems:

UTM (Unified Threat Management System, which is a security system. It protects against

antivirus angiosperm, intrusion detection, filtration etc.

Antivirus Software

Spyware Protection

Content Filtering

Internet Connectivity: Four Broadband Internet Connections

Types of operating Systems used:

Client Windows 7

Server Windows-2007 server

Mail server- Linux, deep root

The ship repairs Department, for its convenience uses a tailor-made ERP system separately,

known as ISRS (Integrated Ship Repair System) in which the commercial and financial aspects

are entered and frequently updated to the RAMCO system.

Thus all system facilitating functions for other departments are done by the IS department.

The intranet has many facilities which also facilitates the employers and employers to access to

their individual data regarding No. of leaves, pay structure, late attendance, overtime, pay slip

details etc.



MATERIALS DEPARTMENT

Material Department deals with the procurement and storage activities. Materials are

procured on request arising from different departments. The materials are purchased at right

quantity, right time and right price and from right suppliers.

Objectives

a. Ensure required materials, equipment, machineries and services etc. Of presented

specifications from reliable sources in the required quantities at competitive price

and right time to support production, plant and keep and other requirements.

b. Uniformity of approach of all concerned departments in procurement activity.

c. The purchases are made following fair and transparent practices with a view to

ensure equitable opportunities between participating suppliers and contractor in

tender situation.

d. Total lead time for procurement system.

e. Ensure the legal commercial interests of company are safeguarded at all times.

Scope

The material department covers various aspects of purchase and stores procedure in the

Organization namely.

a) Identifying Requirement

b) Developing vendor base

c) Raising demands

d) Tendering

e) Receipt of bids

f) Bid evaluation

g) Placement of orders

h) Order follow up

i) Payment

j) Collection, storage and issue of materials

k) Disposal of items

l) Inventory Control

The above procedures are followed for all ship building and capital procurement. The

procedures shall be applicable for all ship repair procurement carries out through materials

department.

Special procedures for procurement in case of certain projects may also be separately issued

by CMD depending on the requirements and the same shall also be applicable only to that

project.



Fig 4.14

Materials Divisions

Materials -1

Materials -2

Steel, Stock Control Materials & Stores

Materials 1

Dealing the procurement of

ADS Materials 1 &2

Projects Materials-1

Consumable Materials & Services

Electrical Spare Materials.

Materials 2

Dealing the procurement of

Small ship Materials

Projects Materials- 2

Mechanical spares materials

Steel, Stock Control Materials & Stores

Consisting of

Procurement of steel & Stock Control materials

General stores

Outfit Warehouse

CGM(Material and Quality Control)

DGM-M1

AGM-M1

DGM-M2

Manager-M2

AGM (Stores steel &SC)

Manager (Steel & SC)

DGM( I&QC)




Bonded Stores

Customs Liaison Office

Types of Procurement:

a. Cash Purchase

The Value of Individual indent and purchase will not exceed Rs. 5000/- such indent

will be dealt by cash purchase section.

b. Emergency Purchase

Total value of emergency purchase indent shall not be more than Rs. 25000/- such

indent will be dealt by emergency purchase section.

c. Committee Purchase

In case of items were specification cannot be detailed such as ornamental type of

sanitary pipes, fittings, furnishings selection is to be carried out from the market. For this

purpose a committee of 3 officers will be constituted from:

Material Department

Indenting Department

Finance Department\

The CGM Materials and QC shall be the authorized officer to constitute such Committee.

d. Open Tender

This is used for procurement of project items/ capital equipment and for bulk supplies

of plant, electrode etc. and the services like interstate transport, customs clearance contract

etc. This can be invited through public advertisement in one or two leading news paper of all

India reputed and by displaying details in the internet for items with an estimated cost of

above Rs.25 Lakhs.

Likewise there are other types of procurements such as;

a) Single Tender

b) Limited Tender

c) Website Tender

d) Repeat Order

e) Long Term Rate Contract

f) Sub Contracting

g) Fast Track procurement

h) Procurement of ship repair materials

Two types of Tender Process

Single Bid Tender

Two Bid Tender



SINGLE BID TENDER

Fig 4.15

Receipt of material

Placement of Purchase order - Letter of indent

Financial Concurrence and approval

Purchase Proposal

Comparitive Statements

Techno-Commercial Evaluation

Tender Opening

Inviting Tender

Receipt of Indent



TWO BID TENDER

Fig 4.16

Receipt Of Material

Placement of Purchase Order- Letter of Indent

Financial Concurrence and approval

Purchase Proposal

Tender Committee

Comparitive Statements

Price Bid Opening

Techno-commercial Evaluation

Tender Opening

Inviting Tender

Receipt Of indent



SHIP REPAIR DEPARTMENT

The ship repair department functions under the guidance of CGM (Ship Repair). The structure of

this department is shown below:

Fig 4.17

1. Ship Repair Operations Department

2. Ship Repair Commercial Department

3. Ship Repair Planning Department

4. Ship Repair Common shop Department- Concerned with engine and Machine Shop

5. Small Ship Division and Forward Planning

The above sub departments under the ship repairs, performs the same activities as

that of ship building department, which has been explained previously, But the activities

are for ship repairs and not for building.

The Ship repair department undertakes complex and sophisticated repairs to oil Rigs

& ships of Navy, Coast Guard & Merchant Navy.

Repair division of CSL is capable to undertake:

Repair Of Ships

Up gradation of ships of oil exploration industry.

Periodical Layup repairs

Life extension of naval ships, Coast Guard, Fisheries and Port trust besides

merchant ships of SCI and ONGC.

The ship repair division constitutes 30 % revenue to the Industry.

CGM (Ship Repair)

DGM (SR) DGM (SSD & FP)

DGM (SSD)

DGM (SRO)

DGM (SRC)

DGM (SRP)

DGM (SR-CS)




SHIP REPAIR FACILITIES IN CSL

The repair dock of Cochin Shipyard is of dimension like (270 x 45 x 12 m) and it can

accommodate ships up to 1, 25,000 DWT and 3 quays:

280 m Length with 15 tone carriage,

208 m Length with 10 tone and,

5 tone carriage and 469 m Length with 20 tone carriage.

The quays have adequate service lines of oxygen, acetylene, compressed air and

power connections.

The ship repair engine shop is equipped with modern machine looks like Plano miler (up to 30

T), bar boring equipment (up to 300 mm dia), inside grinding machines (up to 300 mm dia),

heavy duty lathes (up to 12 m Length), horizontal drilling machine (up to 100 mm boring and

600 mm drilling), shrinkage equipment (up to 6 m x 900 mm outer dia), cylindrical grinding

machine (630 mm x 2T), horizontal boring machine (up to 560 mm dia), dynamic balancing

machine (up to 3t) etc.

The overall ship repair activities are subdivided in to three.

1. Hull Repair

2. Machinery Repair

3. Electrical repair

These three divisions are handled by the respective departments which come under the ship

repair division.

Repair Facilities

Dock No.1

These three divisions are handled by the respective departments which come under the ship

repair division.

Quays

There are three quays of 280 M length with 15 T carriages, 208 M Length with 10 T & 5T

carriage and 460 M Length with 20 t Carriage. The quays have adequate service lines of oxygen,

acetylene, compressed air and power connections.

Engine and Machine Shop

This shop is equipped with modern machine tools like Plano miler (up to 30 T), Bar boring

equipment (up to 300 mm dia), Inside Grinding Machine (up to 300 mm dia), Heavy Duty lathes



( up to 12M Length), Horizontal Drilling machine (up to 100 mm boring & 600 mm drilling),

Shrinkage equipment (up to 6 M x 900 mm O.D), Cylindrical Grinding Machine (630 mm dia x

2 T), Horizontal Boring machine (up to 560 mm dia), Dynamic Balancing Machine (up to 3 T)

etc.

Other Facilities

Hauling Carriage for safe docking and un-docking of ships.

High Pressure Water Jet for hull cleaning.

Blasting and Painting of conventional, epoxy and SPC systems.

Facility for Boiler re-tubing.

Facility for Tank Coating.

Electric shop for overhauling of motors and testing.

Electric power at 50 Hz & 60 Hz.

Pipeline supply of compressed air, oxygen and acetylene.

Ship Repair Expertise

Afl oat repairs

The Yard has a term of experienced Engineers and skilled workmen exclusively for

undertaking an afloat repair jobs.

Availability of Sub-Contractors

A captive pool of competent sub- contractors is readily available and can be engaged

for various jobs at very short notice.

Workmanship

The quality of workmanship is of very high order and the owners on many occasions

have gone on record, appreciating the quality work done in CSL. Many vessels have been

repaired and handed over, ahead of schedule.

Experience

CSL has successfully undertaken repairs to more than a thousand ships belonging to a

wide variety of clients including Shipping Corporation of India, Indian Navy, ONGC, Dredging

Corporation of India, Union Territory of Lakshadweep Administration, Fisheries Survey of

India, Ethiopian Shipping Lines, Transocean Offshore Deepwater Drilling Inc and vessels

belonging to various ports of India.



VIGILANCE DEPARTMENT

Vigilance Department is headed by Vigilance Officer who is directly reporting to

CMD. The vigilance department is continuing its activities with the thrust on creating greater

awareness about vigilance and regular system improvements. At least one vigilance sensitization

programme is being conducted per month. Also monthly meeting among field vigilance officers

arranged to share the vigilance matters at the Vigilance Officers level.



MEDICAL CENTRE

As per those requirements the medical centre in CSL started as a first aid centre in the

campus. Later on it developed to a routine OP centre, which is seen today. The head of the

medical centre is the Chief Medical Officer, Dr. Jayakumar.B , who is reporting directly to

Executive Director (Tech & HR).

Main activities and facilities

- Administration of first aid to victims of accident.

- OP facilities for employees and their dependents.

- Medical Reimbursement system.

- Pharmacy facility.

- Causality room.

- Minor operation theatre.

- Ambulance.

- Two rest rooms for employees.

- Group insurance policies for employees.

- Medical advance facility for employees and dependents.

- Whole hospital payment made directly by company for those employees.

- Periodical medical check-up on age basis.

- Family health record with medical centre.

- Provide interaction facility between CMO and employees.



STORE DEPARTMENT

In department store materials, chemicals, gases, equipments, electrical goods, consumable

items, spares etc, which are coded and entered into a database, Stores can be general stores and

bonded stores.

On receiving the purchase order from the materials department stores are intimated that

materials are on the way to be stored.

On carriage inward of materials, the receipt of materials is acknowledged and the quantity and

materials are verified against purchase order. On completion of this initial inspection, GRIR is

issued. On receipt of the GRIR, I& QA or indenting department does the inspection and on

approval, materials are stored at general store and periodically released. GRIR is also issued to

Finance Department.

GRIR contains the details such as the item code no, description, customer, quantity received,

quantity accepted, quantity rejected etc.

Daily receipt of materials is entered into computerized stock ledger. The ERP system helps

indenter and stores in informing the arrival of critical items. All the items reaching the general

store are credited to stores through stores credit note. Database is maintained for each item,

which contains all the details regarding that particular item.

Issue of materials starts with the store requisition from planning. If any complaints arise of

the materials issued at the production floor, stores issue a Non- confirmed Store Requisition

(NSR) to the suppliers. Stores on the basis of commercial agreement with suppliers either return

it to the suppliers, to be replaced or received or treat it as damage or scrap and processed for

fresh delivery.

On completion of the production, the production issues finished goods intimation report, and

the balanced items after production are returned to stores through Stores Return Note (SRN).

Materials in the bonded store will be periodically released after customs clearance at the

request of intending department. Bonded store preserves imported items only. Bonded stores thus

shall attend to customs and clearance and formalities and arrange to keep all equipments and

other items imported under bond (without payment of customs duty) for ship repair and ship

building purpose



Stores Department Table

Receipt Custody Sub Store Stock

Control

Disposal

Section

Records

Clearance of

indigenous

items

Receiving and

Accounting

Rejected

stores and

disposal of

rejected

materials

Fig 4.18



UTILITY AND MAINTENANCE DEPARTMENT

CSL has very efficient and effective maintenance department, which take care of all the

machinery asset maintenance activities. U&M Department provides support to the Technical

Department. They provide Tools, Equipments such as Cranes, maintenance tools etc and also

they creating Infrastructural facilities and Maintenance U &M has four sub-Departments, listed

below:

1. Mechanical Maintenance Department

2. Electrical Maintenance Department

3. Civil Maintenance Department

4. Electronics Maintenance Department

Maintenance Policy in CSL

Preventive Maintenance

Breakdown Maintenance

Predictive Maintenance



Fig 4.19

DT

CGM Tech

GM

AGM

Electrical

Ship Repair

Ship Building

Main Receiving

Station

General Electrical

Mechanical

Mech. Maintenance 1

Mech. Maintenance 2

Electronics Service

Gas Line Comprosers

Transportation

Material handling Equipments,

Travellers




PROJECT DEPARTMENT

The project department basically is concerned with overall infrastructural development of

CSL. The project department is headed by DGM projects. This department finds out feasibility

for development and improvements for the company. The whole responsibility of future

development planning is in the hands of this department. Presently the project departments also

concentrate on the small ship division project.



OFFICIAL LANGUALE IMPLEMENTATION CELL

Article 120,210,343-351 of the Indian Constitution says the importance of official

language. Hindi is the Official language, the law saying that every Central Government

Institution/company must have an Official language Cell. All the Hindi Promotional activities

are taken by this cell. Such as Hindi exams, contests, Programs etc. and also Hindi Offices have

some special allowances. Hindi Cell comes under the Department of Industrial Relations.CSL

have Official Language Implementation committee.

In pursuance of sub rule (4) of rule 10 of the official language (use for official purposes of the

union) Rule 1976, Government of India have notified CSL in the gazette of India as having

acquired working knowledge/ proficiency in Hindi by more than 80% of Ministerial staff of the

company.

Cochin Shipyard received the Rajyasabha Rolling Trophy and Certificate instituted by Kochi

TOLIC (PSUs) for the best implementation of official Language during the year 2010-2011

among the companies having more than 200 employees CSL team won second Prize in the

Official Language Quiz competition organized by Kochi TOLIC (PSUs) in connection with joint

Hindi week celebration.

Two employees were awarded with the cash prize under the incentive scheme for doing

original work in Hindi.

An Official Language Orientation Programme was organized for senior officers of the

company on 30th

December 2011. Hindi software has been installed in computers used for

administrative purposes.

As part of the Implementation of Official Language Policy of Government of India, CSL is

observing first Wednesday of every month as Hindi Day. In order to enable easy understanding

by employees transliteration of „Aaj Ka Shabd’ in regional language is being displayed in

Internet as also on the notice board. CSL released the third issue of Hindi house journal ‘Sagar

Ratna’.




The Inspection & Quality Control department co-ordinates the activities of the various

functional Groups in the Organization such as to have production at the most economic level

without staking product quality and customer satisfaction. Quality Assurance Process:-

Quality Assurance Process starts right when a quotation for components is accepted and the

Information is intimated by planning to I& C. I & QC check the quality of the samples provided

by the suppliers. I & QC finally issues the accept/reject order of quotation.

Once the supplier sends the goods to the stores; Stores on receipt of goods issue Goods

Receipt Inspection Report (GRIR) to I& QC. I & QC checks the quality of components send and

issue the accept/ reject proposal. The inspection report is send to planning as well as concerned

production floor.

If I& QC rejects the component, a Non Confirmation Report, is sent back through the

Material Department. Supplier does necessary servicing of the parts or the replacement of goods.

But If the components has to accepted in spite of rejection offered by I & QC, because of

urgency in production or the concerned part will not harm the assembly or the extra ordinary

delay involved in fresh delivery, The planning Department issues deviation concession note and

gets the approval of I & QC then use the component in Production.

Inventory Control Technique

The Inventory control techniques mainly used are:

1. ABC Analysis

2. Review Stock

3. Standardization

4. Codification (Symbolic approach & Engineering drawing nos.)



Registration of Vendors

After initial vendor list is prepared the following procedures are followed to register their

name in approved list.

1. Application for Registration (forms available in website)

2. Applicants shall satisfy through documentary evidence then financial stability,

income tax clearance, capacity to perform and produce performance certificate from

those whom they are already supplying. 3. Establish office with telephone for direct contact is essentials.

4. The firm‟s premises may be inspected by the officers to verify the quality standards

of products manufacture and other details shown in the application. Performance

report from Government department and PSU‟s will be considered for registration.

5. A reference may also be made about their performance to excising clients. SSI shall

satisfy registration requirement.

6.

Vendor evaluation and rating cards

Vendor Rating Card maintained by CSL for evaluating performance of vendor against each

order. Default in fulfilling the terms and conditions of the order and general faults are recorded

and the performance is renewed every year by Material Department.

Removal and Black Listing of Vendors

The Vendors are temporarily removed from the approved the list depending on gravity of

default.

The vendors may be:

» Put on hold in case of furnishing insufficient or vague information and wasting time

on clarification.

» Blacklisted or delisted If they supply false and misleading information or If found

unreliable in supply.

» Banned If they are bankrupt, insolvent or partitioned.

When negotiating an international sales contract, both parties need to pay as much attention

to the terms of sale as to the sales price. To make it as clear as possible, an international set of

trade terms (INCOTERMS) has been adopted by most countries that defines exactly the

responsibilities and risks of both the buyer and seller including while the merchandise is in

transit. The CSL complies with this.



AIR DEFENCE SHIP AND MATERIAL PLANNING

DEPARTMENT

The prestigious Air Craft carrier which is the dream project of Cochin Shipyard Limited is

successfully progressing in the yard. All the materials, planning and controlling of the

construction of IAC is undertaken as a separate wing under the guidance of Director Operations.

The activities are same as that of Ship Building planning. The construction process is on its way

with tight security systems.

The Air Craft carrier will have the following features.

Length -260 Mtrs

Breath – 60 Mtrs

Draft – 8.4 Mtrs

Depth – 25.6 Mtrs

Displacement – 37500 Tonnes

The ship will move at max speed of 28Knots and carry about 30 Air Crafts. 17 of these Air

Craft can be accommodated in the hanger.

The hull consists of around 900 blocks of varied tonnage.



CHAPTER 5



SWOT ANALYSIS

SWOT analysis is an effective management technique to evaluate the

business environment of an organization both internal and external to analyze the present

status and future prospectus of the firm. The strength and weakness of the organization,

which are internal to the firm, are identified. The opportunities and threat offered by

business environment, which are external to the organizatio

n, are also analyzed. Then suitable strategy can be formulated by taking both internal and

external factors of the business unit. SWOT analysis for CSL is a step in arriving at the

strategy decision for the organization.

STRENGTH

1. India‟s Only profit Making Shipyard

2. Transparent and Rigid Rules Structure.

3. Innovation and Advanced Technology updation.

4. Willingness to accept and adapt to changes.

5. Lean work force.

6. Inter-Departments Coordination.

7. Reasonable supply chain position including sub contractors.

8. Expanding customer base.

9. Security methods still unknown to a third party. (Eg.36 CCTV Cameras active by 24x7)

10. Availability of Government subsidy.

11. Improved the No of trainees.

WEAKNESS

1. Low capacity of Cranes comparing other International Shipyards.

2. Slow Technology adoption.

3. Slow decision making about Trade Union problems.

4. Outdated technical process.

5. Low productivity.

6. Inadequate Government support.

7. The growth rate is lower in the case of yard development comparing to other competitors.

8. Increasing of Production and equipment costs.

9. Interference of State Government.

10. No new strategy for Improving Good business.

11. No new innovative decisions from Ministry of Shipping



OPPERTUNITIES

1. Establishing Good Customer relation

2. Expanding global market.

3. Possible shift of market to low cost countries.

4. Likely emergence of strong and captive domestic market and increased demand from

Navy, Coast Guard and Island territories.

5. Efficient Training and Development makes Employee attraction.

6. Increased the number of Ship repairs.

7. Decreased Government rigidity of process.

8. Awards and achievements give a positive effect on new contracts.

9. CSL have Highest Growth rate comparing last Decade.

THREATS

1. Withdrawal of subsidy scheme from August 2007.

2. Rising cost of man power and material.

3. Increasing Competition.

4. Archaic Labour laws.

5. Increasing Complexity of tax structure, introduction of new taxes, and instance of

administration of taxes.

6. Comparing other International Shipyards, CSL have very low capacity equipments.

7. Increasing the No of Political Trade Unions.

8. Hic of Material waste

9. Decreasing the number of Ship customers in the world.



CHAPTER 6



CONCLUSION

Cochin shipyard is presently operating at 100% capacity

utilization. There is no space capacity available. Presently the yard can

construct ships up to 1, 10,000 DWT. Cochin Shipyard has planned for

enhancing its capacity through a larger dock up to 25000-30000 DWT. The

yard also got GOI approval. The shipyard also plans to introduce Dock arms

and Moveable Hydraulically Activated Platform.

Cochin Shipyard is one of the first yards and largest in India to

use the Integrated Hull Outfitting and Painting (IHOP) system in

construction. Under this technology the ship is constructed in modules, fully

outfitted and painted before assembly. This method of construction is faster

and safer compared to the traditional method of construction. Besides, the

yard was also one of the first shipyards to adopt the Tribon software for ship

design and introducing CAD/CAM. Not only that, presently, the Cochin

Shipyard is the only one in India that has the capability to build large and

modern ships. Another credit is that it is one and only profit making ship

industry in India. It is important to acknowledge and appreciate the historical

role played by CSL in the realm of growth of ship building in our country

and has overcome some of its constraints.



FINDINGS

1. Cochin Shipyard Limited is the only profit making Shipyard now in India.

2. Rate of profit is little bit decreased last year.

3. CSL have a very good quality workforce.

4. State Government is very much corporative to the CSL programs.

5. Efficient Recruitment polices.

6. Efficient and effective METI Training

7. Efficient Security precautions.

8. Comparing with the other International Shipyards, CSL didn‟t have a high

capacity Cranes.

9. Any employee can approach HR Manager without any permission.

10. No of Trade Unions are decreased.



SUGGESTIONS

1. Designation boards in the table to the Office staffs will help to

avoid confusions.

2. Increase the Number of Ship repairs.

3. Improve the METI Training Classes facilities.

4. Allowing Projects for Educational Purpose is needed.

5. Increase the quality of food in CSEC (Cochin Shipyard Employees

canteen) by increasing the price of food in 2-5 %.

6. Provide vehicle facility to the Gusts and Visitors within the CSL

area. (Because of different Department have big distance each

other)

7. Modernize the security services by implementing new Technology.

8. Upgrade the employees and trainees‟ Uniform‟s Quality, Design,

colour, style etc.

9. Ensure the Trade Union Co-operation needed.

10.Provide New sign in sign-out points needed for avoiding rush.



BIBLOGRAPHY

1. Certified Standing Order (2011)

2. Settlement of Amendment. (1972-2010)

3. Annual Report Cochin Shipyard Limited 2011-2012

4. http://www.cochinshipyard.com

http://wikipedia.com

http://www.cochinshipyard.com/

http://wikipedia.com/

Organisational Study Report of Cochin Shipyard Limited

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