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ABG Shipyard Ltd was earlier known as Magdalla Shipyard Pvt Ltd. It started its
production in 1991. Its main objective then was to produce high performing vessels and
create a customers base in the global market of shipping. The company͛s main objective
include

Œ ˜alues
ΠTime efficiency
Œ ºost consciousness
Œ Ñmployee security
Œ ºustomer satisfaction

Due to company͛s high objectives it has been able to deliver 104 vessel in the last
decade and they also include some of the specialized and sophisticated vessels like
Interceptor boats, self loading and discharging bulk carriers, dynamic positioning ships,
diving support vessels for leading companies in India and the world.


% 

As compared to other sectors, shipping industry has a very distinct and unique feature
i.e. they sell first and construct later. The future scope of Indian shipping industry is high
because of the following reasons

ΠIndia has got a high amount of skilled labors that are a necessity for the
industry
ΠDemand of shipping is high in the western countries and do not possess
enough production capacity
ΠLabour cost in India is low
Πumber of shipyards in India is very less


%  

º
 
   

Freight rate is considered as a lead indicator to indicate a reversal in the shipbuilding cycle. The
fall in freight rates led to the slowdown in new orders in 2009. Up to October 2009, only 21mn
dwt of new orders were received, vis-à-vis 79mn dwt in 2008 and 135mn dwt in 2007. The
situation was aggravated by the limited credit availability to the shipping and shipbuilding
industries. However, in the last one year Baltic index has gone up by166% globally, the Dry Bulk
segment is likely to witness a substantial execution of the order book in 2010 and 2011, with
nearly 2,000 vessels due for delivery from the current order book of 2,450 vessels. It is
estimated that ~30% of the global order book could be potentially cancelled, but this could also
help rein in oversupply. The replacement demand is also likely to be subdued for the Dry Bulk
segment, except in the case of Handy size vessels, where nearly 40% of the fleet is more than 25
years old. Handy size

Forms 24% of ABG's Dry bulk order book. It could also benefit from such demand, as it focuses
on the sub-60,000 dwt category and global shipyards cater to larger vessels.

Subsidies: Timely payment and extension could act as a trigger

So far, ABG has booked Rs489cr as subsidy in FY10YTD, and has received around Rs40cr against
it from the Government. The management has indicated that the subsidy component on the
existing order book would be around Rs1, 800cr, and is likely to be collected over next five
years, of which Rs140cr is expected to flow by FY2011Ñ. Further, as per media reports, there is a
high probability of the extension of the subsidy for a period of 10 years, with retrospective
effect from August 2007. We believe that the timely payment and extension of subsidy could act
as a trigger, thereby improving the company's working capital and leverage. However, we have
excluded the subsidy amount from the net worth while arriving at the fair value of ABG, which
could provide a further 25% upside to our fair value.

In order to make Indian shipbuilders globally competitive, the extension of subsidy, tax
concessions or soft loans are quite likely in the upcoming budget. Globally, shipbuilders have
been provided support by their respective governments. However, the subsidy factor could
come down further for ABG, as the contribution of bulk orders minimizes and income from the
rig segment increases, which is not eligible for subsidy.
 Ship repairing gaining momentum in India

The potential size of the ship repair industry in India is around Rs2,800cr, which includes
repairing Indian and foreign vessels calling at Indian ports. ºhina has been emerging as a
dominant player in the ship-repair industry, with 176 dedicated ship-repair yards, while India
has one dedicated ship repairing yard (Western India Shipyard) and 35 smaller ship-repair units
(major ones being ºochin Shipyard, Hindustan Shipyard,

Mumbai Port Trust and Mazgaon Dock, having permanent approval as ship-repair units). About
56,000 people in ºhina are involved in ship repair, while in India the number is 5,000. Ship-
building is technology-driven, while ship repair is labor-intensive (calls for ancillary support and
a quick turnaround time). For every Rs100

Spent on ship repair, approx Rs30 goes towards labour charges. With the growing fear of
pollution, and stricter norms and regulations, the ship repair industry is a lucrative industry.
Moreover, Indian shipyards have competitive advantages like a high growth region, low labor
costs, the availability of a trained and skilled labor force, and proximity to international shipping
routes, offering low mobilization and demobilization expenses, with 5,500km of a mainland
coastline.

 
 º  


 

  


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The ship building industry enjoys strategic importance in view of its role in developing a
country͛s shipping fleet. Being a labour intensive industry, countries with low wage levels
are ideally suited for ship building activities. The ship building sector is a global industry with
ºhina, South Korea and Japan controlling 78% of the total market share. India is a very small
player with an insignificant market share.

The fortunes of the ship building industry generally fluctuate in tandem with global
economic growth and international trade. The 3.9% global economy growth in 2003 and 5%
in 2004 has been above the long term underlying trend of 3.6%. The tonnage demand for
sea-borne traffic grew 10% in both 2003 and 2004 as compared with 4-5% growth per
annum since the nineties.

Structural changes in the shipping market have resulted in longer distances and
increased demand for all types of tonnage. A strong ship building market is expected to
continue in the foreseeable future due to higher economic growth, low interest rates, its
importance from defence perspective and a continuation of the global outsourcing trend.

Ship building also involves heavy engineering with a multi-disciplinary technical and
industrial competence ʹ requiring expertise in metallurgy, heavy sheet metal fabrication,
high-tech welding, structural engineering, naval architecture, material sciences, hydrology
and propulsion systems. The technological sophistication too has been increasing for
building all sizes and types of ships.

Ship building is a global industry with ºhina, South Korea and Japan controlling 78% of
the world market though modern ship building, as defined in the contemporary world,
evolved in Ñurope.

Ship building as conducted in the past in many parts of the world, including India was
limited to very small ships and with limited design sophistication. The political dominance
and resulting trade influence of Ñurope in the colonial era necessitated the building of large
ships. This need spurred the development of ship building industry in Ñurope and later in
orth America during industrial revolution. In this period, ship building industry saw a
continual influx of superior technology with major changes in ship design and materials
used to build ships, as also in the size and number of ships built.
 The maritime scenario witnessed momentous changes after World War II. In the late
sixties, the Ñuropean ship building industry began to steadily witness competitive challenges
from developing countries like Japan and South Korea ʹ indicating a shift towards the Asian
countries. High labour costs in Ñurope and the US also contributed to a gradual shift in ship
building to Asian ºountries. Japan emerged as the one of the largest ship building nations
outside Ñurope while South Korea emerged as a strong player in the seventies. The growth
of South Korean shipyards was significant as it demonstrated capability to build large ships
at highly competitive costs. Till date, both Japan and South Korea retain their hold with a
64% market share.

[Source: ºommission of the Ñuropean ºommunities ʹ Seventh report from the commission
to the council on the situation in world ship building, Brussels, 6-5-2003 ºOM (2003) 232
final

Web address:
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/03/675&format=HTML&aged
=0&language=Ñ&guiLanguage=en#file.tmp_Ref_1]

The increasing wage structures in Japan and South Korea are increasingly leading to the
emergence of ºhina and Taiwan as the other leading ship building nations. Japan, although
no longer considered a low cost producer, is expected to continue to dominate the world
market due to larger scale automation and robotisation in its shipyards.

India is also likely to compete for a share in the Asian ship building market space. With
100% FDI in Indian ship building sector and growing competitive pressures to expand
capacities across geographies by harnessing local advantages, India has all the chances to
bag its legitimate share of maritime action.
 (1) The Far Ñast passed Western Ñurope in 1966 (the year I emigrated).

(2) Korea passed Japan in 2006.

(3) ºhina passed Japan in 2009.

(4) The Far Ñast now has over 90% of the market.

[Source: Lloyd's Register of Shipping's "World Fleet Statistics"

Web address:
http://www.ihsfairplay.com/Maritime_data/World_Fleet_Statistics/World_Fleet_Statistics.
html?product=Report,World%20Fleet%20Statistics&i=4]


% )  


º

1989 - Acquisition
1992 - Unique ship-lifting facility
1993 - First major domestic order
1994 - Order for 3 cement carriers for Gujarat Ambuja ºement Ltd.
1994 - First export Order
1995 - ºonversion into Public Limited ºompany
1996 - Ñntered into Ñuropean Market
2000 - First Government Order for 2 India ºoast Guard
2001 - Ñntered the Gulf / Mid Ñast Market
2002 - Introduction of Subsidy Scheme for Private Shipyards
2004 - Major proposed expansion; capability to produce ships upto 1,20,000 dwt.
2005 - Private Placement for Funding Ñxpansion
2005 - IPO & Listing of shares on BSÑ
2007 - Listing of shares on SÑ

The company was originally incorporated as ͚Magdala Shipyard Private Limited͛

vide its certificate of incorporation bearing number 7730 dated March 15, 1985 with
Registrar of ºompanies, Gujarat, Dadra & agar Haveli under the ºompanies Act, 1956
by Ram Swaroop akra and T. ˜. Ramchandani. The current promoters acquired the
shares in the year 1989.

The name of the company was changed to ͚ABG Shipyard Private Limited͛ on
May 25, 1995. Subsequently, on the receipt of approval from the ºentral Government of
India, our company became a public limited company and fresh certificate of
incorporation was issued by the Registrar of ºompanies, Gujarat, Dadra & agar Haveli
on June 14, 1995.

It delivered its first ship named ͞and Hazira͟, a bulk carrier, in ovember 1990
to Ñssar Shipping Limited. During the period 1990 to 1994 the company delivered 18
ships mostly bulk carriers and cement carriers. In the year 1996 the company achieved
its first major break through in the international markets and delivered three newsprint
carriers to Lys Line AS, Oslo, orway. The shipyard has the capacity to construct ships up
to 20000 DWT and 155 meter length (as reported to SÑBI on May 25, 1995). The
shipyard has been certified by D˜ for ISO 9001 for its manufacturing process.

 
 
 


 
1985 Incorporation of our ºompany as a private limited company
1989 Acquisition of shares by the current promoters
1990 Delivery of the first ship of our ºompany
1993 [

 
 



1994 
 
    

1994 We received our first export order
1995 ºonversion into Public Limited ºompany
1996 Ñntry into the Ñuropean Markets
2000 First Government Order- Indian ºoast Guard for 2 interceptor boats.
2001 Ñntry into Gulf/Mid Ñast Markets
2002 All India Award for Highest Ñxporters from ÑÑPº under the category ͚Highest Growth in
Ñxport- on SSI
2003 All India Award for Highest Ñxporters from ÑÑPº under the category ͚Highest Growth in
Ñxport- on SSI
2004 ºertification for ISO 9001:2000 received from D˜ etherlands
2005 Preferential allotment of Ñquity Shares


%
  


' 

ABG Shipyard Ltd is a subsidiary of ABG International Private Limited. ABG

International Private Limited was incorporated in Maharashtra on September 3, 1993 as
Magdala International Private Limited. On June 24, 1994, the name of the ºompany was
changed to ABG Magdala International Private Limited. Later, on October 31, 1996, the
name of the ºompany was changed to ABG International Private Limited. The
Registration o. of the ABG International Private Limited is 73745/11. The main object
of our ºompany is to conduct trading activities. ABG International Private Limited is
promoted by Rishi Agarwal and Saket Agarwal. Other subsidiaries of ABG International
includes Onaway Industries Limited; ABG Shipping Limited; ABG ºement Limited; Jarrow
Finance & Trading Private Limited; Banal Investment & Trading Private Limited; B.F.
Ñngineering Private Limited

At the time of conversion of the company from Private Ltd to Public Ltd the share
holding of Rishi Agarwal and Saket Agarwal was 50% each. The board of director
comprised of Rishi Agarwal, S. Muthuswamy and D. P Gupta.
 Rishi Agarwal serves as on-Ñxecutive on-Independent ºhairman of the Board of
ABG Shipyard Limited. He holds an MBA (Finance) from Purdue University of USA. He is
a first generation technocrat and is the Managing Director of ABG Shipyard Ltd. After
returning from USA he took over the management of ABG Shipyard Limited and under
his able stewardship and guidance has reached to present level of one of the private
sector Shipyard in India. Has over 24 years experience in Shipbuilding, Ship Repairing
and Shipping. His other Directorships include ABG International Private Limited, ABG
ºement Limited, ABG Ñngineering & ºonstructions Ltd, ABG Ñnergy Ltd, ABG Ñnergy
Himachal Pradesh Ltd, ABG Ñnergy (Gujarat) Ltd, ABG Shipyard (Singapore) Pte. Ltd, ABG
Infralogistics Ltd, ABG Power Private Ltd, ABG ºranes Private Ltd, ABG Kolkata ºontainer
Terminals Private Ltd, ABG Kandla ºontainer Terminals Ltd, ABG Projects & Services
Limited (UK) and ABG Ports Private Ltd.

Saket Agarwal serves as on-Independent on-Ñxecutive Director of ABG Shipyard

Limited. He is a ºommerce Graduate from Mumbai University. He has experience in
marine business, port services, port development and transportation. He is the
managing director of ABG Heavy Industries Limited, a listed company with a market
capitalization of Rs 1,856 million, which is in the business of heavy lifts and port related
services. His other Directorships include ABG Infralogistics Limited, ABG Kolkata
ºontainer Terminal Private Limited, ABG Kandla ºontainer Terminal Ltd, ABG Projects &
Services Limited (UK), ABG ºranes Private Limited, ABG Power Private Limited, ABG
Ports Private Ltd, ABG -LDA Bulk Handling Private Ltd, ABG Haldia Bulk Terminals Private
Ltd, ABG ºoastal Private Ltd, ABG ºontainer Handling Private Ltd, ABG-LDA Marine
Private Ltd and Onaway Industries Ltd.
 The key people at ABG Shipyard Ltd are as follows


  º 

Rishi Agarwal 2008 on-Ñxecutive on-Independent ºhairman of the Board
Rajashekhar - ºompliance Officer, Secretary, General Manager ʹ Legal
Reddy
Ram akra 2008 Managing Director, on-Independent Ñxecutive Director
Arun Pathak 2008 on-Independent Ñxecutive Director
Ashwani Kumar 2010 Director
Saket Agarwal 2007 on-Independent on-Ñxecutive Director
Ashok ºhitnis 2005 Independent on-Ñxecutive Director
Shahzaad Dalal 2006 Independent on-Ñxecutive Director - Representative of IL
& FS Investment Managers Limited
ainesh Jaisingh - Ind on-Ñx Director - Representative of Standard
ºhartered Pvt Ñquity Advisory (India) Pvt Ltd


 % 
*



º

As reported on the official website of the company,

The vision of the company is ͞ABG Shipyard Limited shall be a world class Shipyard
capable of building and repairing vessels with the highest standards of quality, safety and strict
adherence to delivery schedules at very competitive prices.͟

The mission of the company is ͞To be a Global Marine Shipbuilding ºompany, offering
customized full-service solutions to our customers, enabling them to focus on their core
competencies.͟

There are 14 nominated berths available for hull Berth allocation for an average mix of
vessels 45 to 120 meters length. There are 3 construction Bays presently available with 12 Skids
in each Bay. Thus 36 skid available for construction of 10 X 10 Meters blocks. There are 23
vessels under different stages of production in the shipyard at a given time are possible. 2
available jetties can accommodate vessels for stage between launching and delivery.

Blasting and Painting of Blocks, Hull Assemblies, Pipe Fittings:

O ºarried out in open environment by Grit blasting, then priming and final painting.
O Painting equipment is based on airless spray as standard.

Storage areas:

O ºovered sheds with vertical and horizontal stacking for steel plates, profiles and
pipes.
O ºovered bonded stores area for storing the bought out major equipments & any
other item considered under customs supervision and marked for exports.
O Suitable cranage capacity.
Other facilities:

O Bending and ºº cutting facilities.

O Submerged Arc Welding facilities.
O ºO2 welding machines facilities.

Marketing ºapabilities

O First Ñuropean export order - 101.00 M long 5th Generation ewsprint /

Multipurpose ºontainer ˜essel from M/s. Lys Line, orway.
O Marketing Organization - International and Domestic Market Personnel assisted
by aval Architects, Ñngineers and Ñstimation team.
O Focus on Ñuropean and Persian Gulf Markets.

Planning ºapabilities

O Master Plan scheduling.

O Hull block fabrication schedule.
O Activity schedules prepared for each vessel.
O Review of plans every month.
& + 

,


 % & + 
   

The organization design process is often defined in phases. Phase one is the definition of
a business case, including a clear picture of strategy and design objectives. This step is typically
followed by "strategic grouping" decisions, which will define the fundamental architecture of
the organization - essentially deciding which major roles will report at the top of the
organization. The classic options for strategic grouping are to organize by:

O Behavior
O Function
O Product or category
O ºustomer or market
O Geography
O Matrix

The levels of hierarchy at ABG Shipyard Ltd is divided in to three parts

Top Level

Middle Level

Bottom Level
 As the diagram suggests the number of workers or employees at the Top Level
management is the lowest as compared to Middle Level management and Bottom Level
management.

The number of employees at the Middle Level management lies between that of Top
Level management and Bottom Level management.

While the number of workers at the Bottom Level management is the highest.

ABG Shipyard Ltd has a total work force of 10,000 workers covering all of its three
plants. These workers consist of 1,200 contractual labours. The total work-force is
divided into 275 teams representing a unique bled of skill, expertise, and camaraderie.
Its experienced and highly knowledgeable experts keep abreast of the latest
developments. They rise to global challenges with well trained and well equipped
sophisticated technological tools.


 % -


We have established a tradition of best practices in corporate governance. We have

complied with the requirements of the applicable regulations, including the listing agreement
to be executed with Stock Ñxchanges and the SÑBI Guidelines, in respect of corporate
governance, including constitution of the Board and ºommittees thereof. Our corporate
governance framework is based on an effective independent Board, separation of the Board͛s
supervisory role from the executive management and constitution of Board ºommittees,
majority of them comprising of independent directors and chaired by an independent director
to oversee critical areas.

We have a broad based Board of Directors constituted in compliance with the

ºompanies Act and listing agreement to be executed with Stock Ñxchanges and in accordance
with best practices in corporate governance. The Board of Directors functions either as a full
Board or through various committees constituted to oversee specific operational areas. Our
management provides the Board of Directors detailed reports on its performance on a
quarterly basis.

The Board of Directors has nine (9) Directors of whom two (2) are whole time Directors,
two (2) are promoter Directors, two (2) are investor Directors and three (3) are independent
Directors. The ºhairman of the Board of Directors is a nonexecutive director.
 G G


 


Managing Director - Rishi Agarwal

on Ñxecutive ºhairman - Kamlesh Kumar Agarwal

Promoter Director - Saket Agarwal

Ñxecutive Director (Technical) - Ram Swaroop akra

Independent Director - Mehernosh Rustom Pardiwala

ominee Director - M. J. Subbaiah

Independent Director (Additional) - Ashok ºhitnis

ominee Director - ainesh Jaisingh

ominee Director - Shahzaad Dalal


 &  

 
% 
 

The shipyard is located at Magdala, near Surat on the banks of the river Tapi which is
along the western coast of Gujarat, India. The shipyard is spread across 35 acres of the
area. Our shipyard has state of the art, manufacturing facilities including a ͞Shiplift
Facility͟ which is one of its kinds in this region, having a capacity of 4500 tons, side
transfer facilities, ºº plasma cutting and steel processing machinery. The shipyard has
multiple building berths; two Dry Docks, two jetties and covered fabrication shops
equipped with modern ºº based fabrication machinery. The ͞Shiplift Facility͟ gives the
yard an operational flexibility and enables the yard to simultaneously build on modular
basis and repair up to twenty three (23) ships. The manufacturing process is in line with
world-class standards and the yard is certified by D˜ for ISO 9001.

ºurrently, the yard can construct ships of a maximum length of 155 meters and up
to a maximum weight of 20,000 DWT.

IT also has indoor facilities to build aluminium ships of to eighty (80) meters. We
believe that our indoor work environment is a competitive advantage in building certain
types of ships and in attracting and retaining customers. We are in the process of setting
up a modern ship building facility at Dahej (150 kms from the existing yard). The
proposed expansion would help us strengthen our presence in the global ship building
industry and enable us to build larger and more complex ships.


 %  
 

The Product Range of ABG Shipyard Ltd includes:

O 102M Side Loader / ewsprint / ºontainer Ship

O 83.5M DP2 Diesel Ñlectric Propulsion Diving Support ˜essel
O 26 Metre High Speed Aluminium Interceptor ˜essel
O 47M 80 ton Bollard Pull MP˜
O 60.8M DP1 (Dynamic Positioning) Diving Support ˜essel
O 56 M Well Test / DP2 Supply ˜essel
O 50 M Well Test / Supply ˜essel
O 50 T Azimuthing Stern Drive Bollard Pull Tug
O 60.8 M. Anchor Handling Tug / Supply ˜essel
O 49.5M Multi-utility ˜essel
O 77.9M 2250 DWT Mini Bulk ºarrier
O 80M 2500 DWT Self Loading / Unloading Bulk ºement ºarrier
O 4000 DWT Self Loading / Unloading Bulk ºement ºarrier

Since 1991, ABG Shipyard has constructed and delivered 95 ˜essels globally, including
Specialized and Sophisticated vessels and has successfully delivered three highly sophisticated
5th generation specialized ewsprint ºarriers to Lysline, orway among others. These ships are
designed for worldwide service with unattended engine room and one-man bridge operation.

The company also holds the distinction of having delivered two numbers Interceptor
Boats (45 knots) to Indian ºoast Guard.
·
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ABG is involved in the business of ship building for a variety of marine vessels. It has a
shipyard in Surat wherein it undertakes building various offshore vessels and has a yard in
Dahej where it has commenced building bulk carriers. ABG will start making jack-up rigs in its
rig yard at the same location in Dahej.

Typically it takes 15-18 months to build a conventional vessel such as a bulk carrier,
tanker or containership, and 28-32 months to construct an LG vessel. Ship building companies
recognize revenue based on the proportion of input of raw materials. Typically there are five
cut off stages in the ship building process: contracting, steel-cutting, keel-laying, launch and
delivery. From a typical vessel construction period of 15 to 18 months, it takes 6-9 months from
contracting to steel cutting (design period), 3 months from steel-cutting to keel-laying, 3
months from keel laying to launch and 3 months from launch to delivery. Since most of the raw
materials are used between steel-cutting and launch, most of the revenue recognition for
conventional ships is concentrated during the last 12 months before delivery.
 % º  

The Indian ship building industry is small by global standards. inety per cent of all
India-owned ships are foreign built, and shipyards in India use mostly imported equipment.
Overall, there are 28 large, medium and small shipyards, many of them combining ship repair
services. Major shipyards are in the public sector domain. India͛s share in international ship
building is quite low and there are very few private sector shipyards. The Indian ship building
industry structure can be divided into three distinct segments:

  
 4 The public sector shipyards build merchant class ships. These
include Hindustan Shipyard Ltd, ºochin Shipyard Ltd, Hoogly Dock & Port Ñngineers
Limited and ºentral Inland Water Transportation Ltd.


 
 4 There are three naval shipyards under the purview of the Ministry of
Defence (MoD) which include Mazgaon Dock Limited, Goa Shipyard Limited, and Garden
Reach Shipbuilders & Ñngineers.


 
 4 India has two mid-sized private shipyards namely ABG Shipyard
Limited, and Bharati Shipyard.

Besides, a number of smaller shipyards and repair yards make smaller barges, tugs,
patrol ships, fishing ships. As far as international markets are concerned the ship building has
moved from Ñurope to Asia. We face competition from countries like ºhina, Korea and Japan.
There has been a significant increase in capacity both through the construction of new facilities
and the up gradation of existing shipyards. ºhina is now emerging as a major player in our
market segment and is the price leader. Japanese and South Korean shipbuilders presently
dominate major segments of the ship construction industry, including tankers and bulk carriers.
This dominance in ship construction is likely to continue, since tankers and bulk carriers are
expected to constitute the major growth areas in world ship building.




)
  

 
Strategy of ABG shipyard

Their strategy is to leverage their reputation as a sufficient reliable, customer driven

shipyard operator providing a diversified range of shipyard services they propose to utilize their
proven strengths to enhance their position as one of the leading Indian manufacturer of ships
and to respond to anticipated new ship and rig building construction with the objective of
increasing revenues.

The key elements of their business strategy are as follows:

1) Become a leading provider of integrated marine services,
2) ºapitalize on the expected growth in offshore business , including oil and gas
exploration and production
3) Leverage economies of scale
4) ºontinue to provide a wide variety of high quality products for diversified
markets, and maintain a high quality, dedicated workforce and continue to
utilize modern organizational techniques.

All employees are classified as either regular or temporary. Regular employees are
employees hired without a specific termination date. Temporary employees are
employees whose position at the time of hire is for a short-term period. Terms of
employment will depend on agency needs, and in no case will a temporary position be
construed as being a contract for a definite time.

Ñmployees also are classified as either exempt or non-exempt according to

provisions of the Fair Labor Standards Act.

Regular Full-time Ñmployees are those employees who work 40 hours per week and
are eligible for all fringe benefits.

Regular Part-time Ñmployees are those employees working at least 20 hours but less
than 40 hours per week. Part-time salaried employees are eligible for all fringe benefits
and earn sick leave and vacation at a rate proportionate to the hours they work. Regular
part-time employees that work less than 20 hours per week are not eligible for fringe
benefits.

Temporary Ñmployees are those employees who are paid hourly under Letter of
Agreement for a specified period of time. Temporary employees are not eligible for
benefits.

Labour Turnover Ratio: 0.02

At Dahej, workers are divided into three different departments:

ͻBlue Dress: Production workers

ͻWhite: Managers

ͻOrange: Safety department.

Also, the training given there is on the job to the new professionals.
 [

 
 % º 
   

Share ºapital as on the date of filing of this Draft Red Herring Prospectus with SÑBI is set
forth below:

(Rs. In millions)



  5
 


"

A. Authorized ºapital
100,000,000 Ñquity Shares of Rs. 10 each 1000
B. Issued Subscribed And Paid-Up ºapital before the Issue
42,421,801 Ñquity Shares of Rs. 10 each fully paid-up 424
º. Present Issue to the public in terms of this Draft Red Herring
Prospectus
8,500,000 Fresh Issue Ñquity Shares of Rs. 10 each fully paid-up 85
D. Ñmployee Reservation Portion
200,000 Ñquity Shares of Rs. 10 each fully paid-up 2
Ñ. et Issue to the Public
8,300,000 Ñquity Shares of Rs. 10 each fully paid-up 83
F. Issued, Subscribed and Paid-up Ñquity ºapital after the Issue
50,921,801 Ñquity Shares of Rs. 10 each fully paid-up 509
G. Share Premium Account
Before the Issue 1,016


 % c
 

Details of the ºapitalization of Reserves by our ºompany in the

(Rs. In millions)





 6

  
 


 
  
  $  $  1
 
 6  
6
+
  º

2
$ 

Sept 3, 1994 Sept 3, 1994 9:1 7,200,000 72
Feb 12, 1996 Feb 12, 1996 1:2 4,000,000 40
Mar 15, 2005 Mar 10, 2005 3:2 19,500,000 195

The shareholding of the ABG International

Private Limited is as mentioned.


 
-

  7

 
Rishi Agarwal 5001 50%
Saket Agarwal 5001 50%
 

' 

 As a responsible corporate citizen, we at ABG are committed to the concerns of society as a
whole. Towards fulfilling social responsibilities, ABG supports several causes, some of which are
mentioned below.

 4 ABG is involved in fostering a competitive spirit through active involvement in sports

such as F1 Boat Race and Squash. ABG has organized and supported several of such events.

º
4 Ñducation is the very foundation of a progressive society and ABG

supports this good cause.

 
 . 


 


 ABG Shipyard Ltd. has in the last 2 years won the prestigious award from ÑÑPº
(Ñngineering Ñxport Promotion ºouncil) under the category ͚Highest Growth in Ñxport ʹ on
SSI͛. This award known as ͚All India Award for Highest Ñxporters͛ was won for the following
years:

O ÑÑPº for the year 1999-2000

O ÑÑPº for the year 2000-2001
O ÑÑPº for the year 2002-2003
O ÑÑPº for the year 2003-2004
O ÑÑPº for the year 2005-2006
O ÑÑPº for the year 2006-2007
O ÑÑPº for the year 2007-2008

O ºertificate of Recognition Two Star Ñxport House

O ºertification: ISO 9001 / D˜ ʹ Bureau ˜eritas / R˜A management System º024

 
 º

 
  


  

http://www.moneycontrol.com/financials/abgshipyard/capital-structure/ABG01

http://smartinvestor.in/BSºMS/PDF/abgshipyardinitiatingcoverage.pdf

http://www.abgindia.com/product-main.htm

http://www.moneycontrol.com/company-management/abgshipyard/board-of-
directors/ABG01

httrp://www.theofficialboard.com/org-chart/abg-shipyard-

http://www.reuters.com/finance/stocks/companyOfficers?symbol=ABGS.BO

http://investing.businessweek.com/businessweek/research/stocks/people/people.asp?ticker=1
3377452