I am delighted to invite you to attend the 37th Annual General Meeting of the Company.The Annual Report consisting of the Accounts for the year ended March 31 2016 and Noticeconvening the Annual General Meeting is enclosed herewith.
The results of your Company have not been good as compared to the previous year. TheTurnover was Rs.29.44 crores during Financial Year 2015-2016 on a standalone basis ascompared to Rs.49.84 crores for the Financial Year 2014-2015; the Company reported a lossof Rs.23.84 crores as against loss of Rs.43.18 crores as compared to the previous year. Ashas been stated in my last years speech both Oil & Natural Gas and Shippingindustries are still going through the worst recession.
While the Order Book position of your Company continues to be low recently theCompany has procured 2 contracts details of which are given below: (I) ONGC - Underwaterstructural repair of HC platform. Value of the contract Rs.3 Million (Lumpsum). (II) SanatGostar Kish Co (SGK) Deployment of the vessel E. Francis in Middle East which we havetaken on hire from a company in Middle East along with the diving personnel. ApproximateCharter hire income will be around USD 8 Million. While these and other work alreadycompleted your Company is likely to achieve a minimum revenue of Rs. 90 crores during thecurrent financial year.
The Management is putting its best efforts to increase its business in Middle East.
As per the information received by your Company ONGC will be coming out with thetenders for revamp of BHS NQ RC ICP and SHW WIS platforms etc. and NeelamRedevelopment Project valuing Rs.6000 crores to Rs. 8000 crores. A substantial portion ofthis investment will be made in brown field projects. In the green field projects yourcompany expects to pick up smaller subcontract work for subsea and topside work.
However the results of your Company are better on the consolidated basis. DolphinOffshore Enterprises (Mauritius) Pvt. Ltd has generated a turnover of Rs.120.58 crores andprofit of Rs.86.81 crores while Dolphin Offshore Shipping Ltd has generated a turnover ofRs.19.46 crores and loss of Rs.2.66 crores for the Financial Year.
The Barge VIKRANT DOLPHIN continues to be on long term charter with M/s.Representaciones Y Distribuciones Evya SA de CV 2 (Evya) Mexico till date even thoughwe have received their termination letter dated May 13 2016 w.e.f. May 30 2016. Thetermination of the Charter Party (C/P) is still not be effective as the Charterer has notredelivered the vessel yet as they are yet to rectify all the defects stated in there-delivery survey report. As per the provision of the C/P the Charterers are liable topay 90% of the charter hire of the balance period as compensation of the earlytermination. This matter has been referred to arbitration before LMAA London. The ShipBuilding contracts entered with M/s. Paxocean Engineering Zhuhai Co. Limited for theconstruction of a 400 men DP-3 Accommodation Work Barge and 85M 150 men DP-2 OffshoreConstruction Vessel has been suspended due to uncertainty in the market condition.
The Management is taking various measures to tide over the difficult businessenvironment your Company is facing and is optimistic that with the price of oilstabilising at current levels and the development plans of Saudi Arabia UAE other MiddleEast Countries and ONGC there will be a growth in opportunity for your Company.
As you are aware your Company places a lot of emphasis on HSE and is accredited withOHSAS 18001-2007 & ISO 14001-2004. I would like to inform you that at the ensuingAnnual General Meeting of your Company and in accordance with the Articles of Associationof the Company and the provisions of the Companies Act 2013 I will be retiring byrotation and being eligible will be seeking re-appointment.
The Board of Directors in their Board Meeting held on May 27 2016 appointed Mrs.Manjit Kirpal Singh as an Additional Director whose terms shall end at the ensuing AGMand she shall be further appointed as Director who will be liable to retire by rotation.
I would like to re-iterate our strong commitment to good corporate governance. We arecontinuously striving to improve the quality of our disclosures. Members would haveobserved that the contents of our Annual Reports over the past few years contain moreinformation about your Company and its working.
Our employees constitute our biggest asset and I am sure that their continuedemployment improved efficiency and prosperity will enable your Company to face stronglythe challenges ahead. The effort of your Company is not only to comply with regulatoryrequirements but also practice Corporate Governance principles based on integritytransparency and overall corporate accountability. I take this opportunity to express mysincere gratitude to the Board of Directors for their support and guidance and also to allcustomers bankers financial institutions Government and regulatory authoritiesshareholders and most of all to all the employees for their valuable support andcooperation. I look forward to your continued support trust and participation in thegrowth of your Company. With warm regards
Rear Admiral Kirpal Singh
August 08 2016