ENTERPRISES (INDIA) LTD.
I am pleased to invite you to the 38th Annual General Meeting of theCompany. The Annual Report consisting of the Accounts for the year ended March 312017 andthe Notice convening the Annual General Meeting are enclosed herewith.
The Company's performance has been discussed at length in the Directors' Report.
GLOBAL MARKETS AND INDUSTRY OVERVIEW
World economy is still passing through a difficult time with volatility anduncertainty. Overall the global economy remained weak with the improved outlook of the USeconomy being negated by the slowdown in China and constraints in the Euro zone economies.
After three continuous years of USD 100+ per barrel prices with the peak being USD 147per barrel crude oil price fell in 2014 reached its nadir at USD 27 per barrel and isnow prevailing in the Range of USD 50-60 level. Many countries including India chose toincrease taxes instead of passing on the full benefit of lower prices to the consumer.
In view of the above the reduced oil price led to one of the worst recession for theOffshore and Maritime Industry as witnessed in the past four decades . Most of the clientsof the Company are not making timely payment to the Company and as a result your Companyis facing severe financial constraints.
The start of the GST era is already upon us with the law coming into effect from July01 2017. This consumption based indirect tax reform is sure to catalyse compliance inevery business chain and to expand the tax base in a transparent and efficient mannerwhile reducing the overall tax burden. However due to the lack of clarity on rateapplicable to offshore construction works ONGC has deferred many tenders.
CURRENT YEAR - 2016-17.
In view of the implementation of the Indian Accounting standards Ind AS from the firstquarter of FY17-18 the first quarterly results of the Company will be declared only atthe Board meeting to be held on September 112017. The performance of the Company willremain subdued during this year also but the Management is confident that the same willbe better than that of the previous year FY16-17. The long charter of Barge VIKRANTDOLPHIN owned by the wholly owned subsidiary Dolphin Offshore Enterprises (M) Pvt Ltdwith M/s. Representaciones Y Distribuciones Evya SA de CV 2 (Evya) Mexico is facing lotof uncertainties and issues. Even though we have received their termination letter datedMay 13 2016 w.e.f. May 30 2016 the termination of the Charter Party (C/P) is still noteffective as the Charterer has not redelivered the vessel yet as they are yet to rectifyall the defects stated in the re-delivery survey report. As per the provision of the C/Pthe Charterers are liable to pay 90% of the charter hire of the balance period ascompensation for the early termination. This matter has been referred to arbitrationbefore LMAA London. The Charterer has filed petition under bankruptcy Laws of Mexico.Substantial amount of money is receivable from the Charterer
The initial hiccups on the applicable GST rate is likely to be resolved soonthereafter ONGC is likely to come out with many high value tenders. The wholly ownedMauritius subsidiary is in the process of taking the possession of the barge VikrantDolphin. After taking the possession and after carrying out the repairs it is expectedthat the Company will be able to find gainful deployment of the said barge. With the priceof oil stabilising at current levels and the development plans of Saudi Arabia UAE otherMiddle East Countries and ONGC there will be an opportunity for the growth of yourCompany. Therefore the performance of your Company is likely to be better during FY17-18.
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 ensuing Annual General Meeting of your Companyand in accordance with the Articles of Association of the Company and the provisions ofthe Companies Act 2013 Mr. Navpreet Singh will be retiring by rotation and beingeligible will be seeking re-appointment. Mr. Bipin R Shah resigned from the Board ofDirectors of the Company w.e.f. February 6 2017 I along with the Management and thestaff express our appreciation for his matured advice given during his long standingtenure in the Board.
Rear Admiral Kirpal Singh the founder promoter resigned from the post of Chairman;however he will continue to be a Director of the Company. After the retirement fromIndian Navy he started the Company from his home during 1979 with a meagre capital. Ialong with Management and the staff express our appreciation for his efficient and maturedadvice given during his long standing tenure as the Chairman of the Company and ourappreciation for steering the Company through the difficult times. I have now taken overas a Non Executive Chairman of the Company.
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.
I express my gratitude to all the shareholders for their continued co-operation. Ithank my fellow Directors for their support and valuable guidance. I also thank ourgovernment bankers employees our customers dealers suppliers and other businessassociates for their support and cooperation.
I look forward to your continued support to take the Company towards a promisingfuture.
With warm regards
|Mr. Sabyasachi Hajara |
|August 22 2017 |