Okay. Sanjeev Singhal: This is with regard to the performance. With regard to your second query regarding the order book, the order book as of today, I am not giving as on 30th of June, it is slightly dated, as on today, the order book is 40,400 odd crores. Okay. And as far as the revenue for the current year is concerned, we are targeting may be some increase over next year, over previous year, still to firm up the numbers. As we move ahead, the clarity would be available may be after second quarter. Nalin Shah: Okay. But margins, you feel that continue to be maintained like Q1? Sanjeev Singhal: For the existing projects, in case there are no surprises, we believe a similar kind of a position should be there. Moderator: Thank you. The next question is from the line of Jayesh, a shareholder. Please go ahead. Jayesh: Thank you for this opportunity, sir. I had one question. What would be the order book of your 47% associate company, Goa Shipyard Limited? What would be the value of work unexecuted for GSL? Can you give us that number also? I did find it in the presentation. Sanjeev Singhal: Although Goa Shipyard happens to be our associate company, where we are holding around 47% of the equity. We do not have any kind of a management control. It is a pure investment, and we are concerned with the dividend only. Beyond that, we do not entertain any queries with regard to Goa Shipyard. For accounting purposes, whatever profit is there, it impacts MDL’s net worth and the profit, whatever proportionate share is there, that is added to MDL’s profit in consolidated accounts. Moderator: Thank you. The next question is from the line of Praveen Desai, an individual investor. Please go ahead. Praveen Desai: Good evening, sir. And congratulations for a good set of results. Sir, my request is to split up the share value because now it is a high share value. So, everybody cannot take part in that, and liquidity can also increase. And one more thing, when we get Navratna status, you did not elaborate much about that thing, sir. We were eager to hear something from you regarding that. So, please elaborate something on that. How far we are progressing and how far status has been advantageous to us like that. Thank you very much. Sanjeev Singhal: As far as splitting of shares is concerned, being a government company, this decision is taken by Department of Investment Planning and Asset Management, DIPAM. So, whatever is their decision in this regard or any other issue, as a company, we will be abiding by that. We don't have any information as of now. With regard to Navratna, as a corporate governance abiding citizen, as a company, we had intimated this information immediately when we were conferred the Navratna status. As a Navratna company, it provides a significant advantage to the company as significantly higher powers are available with the board. Capex decisions can be taken without any kind of a restriction or without any reference to the ministry, which facilitates quicker decisions. With respect to joint ventures and collaborations also, compared to the,…as a non-Navratna company and a Navratna company, we can collaborate up to a significantly higher financial exposure, up to INR1000 crores for each collaboration or JV. So, there are certain advantages - as far as the customers are concerned, particularly the foreign customers. There are also a company with a tag of Navratna, has a better standing or a rating with respect to servicing of the orders. So, these are the few advantages which we believe would be accruing to MDL as the time passes by. Moderator: Thank you. The next question is from the line of Gagan Thareja from ASK Investment Managers. Please go ahead. Gagan Thareja: The provision write-back that you indicated, can you give the value for that? How much is the magnitude of the provision write-back? Sanjeev Singhal: These provisions write-back are, actually for a shipbuilding industry, this is a different accounting altogether. There are no provisions per se created. It is the estimated cost to completion. The difference between the order value and the estimated cost to completion is for an accounting period. So, depending upon what kind of a cost to completion is technically estimated, what kind of expenses may be there, the cost to completion fluctuates on each assessment date, on a quarterly basis or a yearly basis. So, depending upon the, in case the cost to completion is coming down, it raises our profits. So, it better happens as we come close to the completion of the project or completion of a milestone. Like in case of a delivered project, the milestone would be completion of D448 liabilities, completion of warranty periods, completion of all pending issues. So, certain costs are considered while calculating the cost to completion towards these milestones. In case the company does not incur those costs, they add to our profit. I hope I have been able to explain you. Gagan Thareja: I understand conceptually what you are trying to indicate, sir. Sanjeev Singhal: There would not be an amount which has been kept separately as a provision. Gagan Thareja: I get your point, sir. It is just that I am trying to assess. Even from that standpoint, when you say that the final cost landed up being lower than the estimated cost, to what extent was the difference? The magnitude can be enumerated. Sanjeev Singhal: On different dates, the cost to completion would be different. It fluctuates every quarter. We do not have the numbers immediately available with me with respect to what was the CTC last quarter and what is the CTC now. This CTC could be different. This could be on the positive side or a negative side for next quarter, depending upon what liabilities actually accrue.
Questions across 1 call
Nalin Shah
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