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Dredging Corporation of India Ltd.

BSE: 523618 Sector: Others
NSE: DREDGECORP ISIN Code: INE506A01018
BSE LIVE 15:51 | 20 Sep 595.60 8.65
(1.47%)
OPEN

587.60

HIGH

622.00

LOW

587.00

NSE 15:52 | 20 Sep 595.50 9.35
(1.60%)
OPEN

589.00

HIGH

621.90

LOW

587.50

OPEN 587.60
PREVIOUS CLOSE 586.95
VOLUME 71896
52-Week high 752.40
52-Week low 360.20
P/E 225.61
Mkt Cap.(Rs cr) 1,668
Buy Price 595.60
Buy Qty 339.00
Sell Price 0.00
Sell Qty 0.00
OPEN 587.60
CLOSE 586.95
VOLUME 71896
52-Week high 752.40
52-Week low 360.20
P/E 225.61
Mkt Cap.(Rs cr) 1,668
Buy Price 595.60
Buy Qty 339.00
Sell Price 0.00
Sell Qty 0.00

Dredging Corporation of India Ltd. (DREDGECORP) - Chairman Speech

Company chairman speech

DREDGING CORPORATION OF INDIA LTD. CHAIRMAN'S SPEECH Dear Shareholders, 1. I have great pleasure in welcoming you to this Twenty Third Annual General Meeting of the Company. The Audited Accounts for the financial year 1998-99 & Directors' Report and Auditors' Report have been in your hands for some time and with your permission, I shall take them as read. 2. 1 am happy to inform you that with sustained efforts the trend set during the past few years - the tempo of progressive increase in turnover of the Company has been kept up and the Company has achieved higher income of Rs.249.02 crore for the financial year 1998- 99 as against Rs.238.14 crore during the year 1997-98. Profit before tax for the year is Rs.76 crore, as against the previous year's profit of Rs.72.28 crore. 3. Your Directors have recommended a dividend of 33% for the year 1998-99 for your acceptance, which is same as that of the previous year. 4. The estimated average demand for maintenance dredging of major ports and other organisations, during the 9th plan period, is about 86 million cum. (hopper solids) per annum. As against this, the annual capacity available with our company, for maintenance dredging, was 43 million cum. (hopper solids) as on 31 - 3-99. With the addition of Dr XV during May 99, this capacity has gone upto 53 million cum. (hopper solids). This will go up further by another 20 million cum. during 2001, when the two Trailer Suction Hopper Dredgers on order join the fleet. Your Company has also proposals to retrofit some of the old dredgers and enhance their economic service life. 5. The revised 9th Plan proposals of the Company for which approval of the Government has been sought by the Company envisage an outlay of about Rs.830 crore. This includes replacements of old Dredgers, as also additions to capacity to cater to the increased requirements of customers. A new Trailor Suction Hopper Dredger of 7400 cum. Capacity has already joined fleet in May, 1999. Your company has entered into an agreement with IHC Holland for construction and delivery of two Trailer Suction Hopper Dredgers of 7400 cum. Capacity each with shore pumping facility. Delivery of these two Dredgers is expected in 1 st and 3rd quarters of 2001. The Company is contemplating procurement of two shallow draft Trailer Suction Hopper Dredgers of 4500 cum. Capacity each with shore pumping facility to cater the dredging requirements at Calcutta Port. 6. Fund requirement for financing the above Dredger acquisition program in the ninth plan is to be met with both from internal resources and commercial borrowings. A public issue also is contemplated to part finance the acquisitions. The shareholders consent is being sought for the same at this Annual General Meeting. Subsequently approval of the Government will be obtained to proceed with the Public Issue. 7. Your Company has been adapting to and attuning itself with, the unfolding economic milieu and is repositioning itself to face the challenges of liberalised economy, thrown-up by market forces. To effectively meet the situation, your Company has taken various measures to improve quality of service and to control costs of operations. Presently your Company is making efforts to acquire accreditation under ISO 9002. Your Company aims to increase utilisation of dredgers to the optimum by reducing idle time through planned preventive maintenance and faster completion of periodical repairs. your Company is presently in the process of selection of a suitable management consultancy firm to help raise its performance to global levels. The consultancy assignment will cover, among others, corporate policy and plan, market strategy, organisational restructuring, HRD and information technology. The restructuring is primarily aimed at addressing the entire gamut of issues - efficiency parameters being crucial element - essential for surviving and staying ahead in the face of challenges in the new competitive era, where better technology, higher productivity and related costs, provide a cutting edge. 8. The Company has signed "Memorandum of understanding" (MOU) with the Government for the 8th consecutive year 1999-2000 also. l am happy to report that the Company's performance under MOU has been rated "VERY GOOD" for financial years 1992- 93 to 1994-95 and "EXCELLENT" for 1995- 96 to 1997-98. It expects "EXCELLENT" rating for the year 1998-1999 also. 9. Besides the various Employee Welfare Schemes, your Company has been engaged in social welfare activities as a responsible constituent of the civic community in and around Visakhapatnam. In this regard, it has been extending assistance to the educational institutions for construction of buildings, distributing textbooks to the needy students, providing hospital equipment and sponsoring training programmes. l am happy to place on record the dedicated services rendered by the employees of the Company, which resulted in better performance. l look forward to their continued contribution in achieving even better results in future. 10.1 am grateful to the Honourable Minister for Surface Transport and the Hon'ble Minister of State for the keen interest they have taken in the progress of the Company. I thank the Secretary, Ministry of Surface Transport for his guidance and advice. l also thank all the officers in the Ministry for their help in all matters. My sincere thanks are due to the Comptroller & Auditor General of India and his staff and also the Statutory Auditors for their cooperation. 11. I am grateful to our valued customers for their continued patronage. l would like to assure on behalf of the Company that we would never relax our efforts to meet their expectations. 12. My sincere thanks are due to my colleagues on the Board for their support and valuable advice in all areas of the management. I now recommend for your consideration and adoption the Balance Sheet and Profit and Loss Account for the year 1998-99. Wishing you happy Dussehra and Diwali (C.S. SASTRY) Chairman-cum-Managing Director