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Dredging Corporation of India Ltd.

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P/E 212.77
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OPEN 559.90
CLOSE 558.65
VOLUME 24228
52-Week high 752.40
52-Week low 360.20
P/E 212.77
Mkt Cap.(Rs cr) 1,573
Buy Price 561.70
Buy Qty 3.00
Sell Price 0.00
Sell Qty 0.00

Dredging Corporation of India Ltd. (DREDGECORP) - Director Report

Company director report


Your Directors have pleasure in presenting this 40th Annual Report togetherwith the audited accounts of the Company for the year ended 31st March 2016.


The Profit after tax of the Company for the year 2015-16 increased to Rs 7966.80 lakhas compared to Rs 6240.84 lakh for the previous year.

The Company’s earning per share for the year 2015-16 also increased to Rs 28.45 ascompared to Rs 22.29 for the previous year. The operational income of the Company for theyear is Rs 66585.89 lakh as compared to Rs 73496.05 lakh for the previous year. The otherincome for the year is Rs 1036.27 lakh as compared to Rs 883.25 lakh for the previousyear. The total income for the year is Rs 67622.16 lakh as compared to Rs 74379.30 lakhfor the previous year.


Keeping in view the financial performance of the Company and other relevantconsiderations your Directors have recommended payment of dividend @ 30% on the paid upcapital of the company i.e Rs 3 per equity share amounting to Rs 840 lakh for the year2015-16. A sum of Rs 800.00 lakh has been transferred to General Reserves during the yearended 31/03/2016.


The capacity utilisation in number of days and quantity dredged for trailing suctionhopper dredgers as against the targets during the year is as under:-

Target Actual % Utilisation
No.of Days 2850 2587 91%
Quantity (Mln. Cu.M) 72 68 94%


DCI MUTLICAT an ancillary vessel has been added to the fleet of DCI.

DCI has further placed order for an inland cutter suction dredger which will join thefleet very shortly. This would facilitate the Company to take up inland dredging worksonce again after a long gap.

In continuation of the steps taken for capacity augmentation of its core dredgingactivity the Detailed Project Report is being prepared for higher capacity trailingsuction hopper dredger.

The Company is also planning to take up refurbishment of the existing aged Dredgers soas to enhance their life as well as their efficiency.

The Company is sure that with the ongoing capacity augmentation the performance willcontinue to improve over the years to come.


The Company has 12 Trailer Suction Hopper Dredgers (TSHDs) 3 Cutter Suction Dredgers(CSDs) and one Back Hoe Dredger apart from other ancillary crafts. The dredger wiseparticulars as on date are as under: -

Craft Year of Built Hopper Capacity (Cu.M) Pumping Capacity (Cu.M/hr)
Trailer suction Hopper Dredger (TSHD)
DCI Dredge VI 1975 3770 -
DCI Dredge VIII 1977 6500 -
DCI Dredge IX 1984 4500 -
DCI Dredge XI 1986 4500 -
DCI Dredge XII 1990 4500 -
DCI Dredge XIV 1991 4500 -
DCI Dredge XV 1999 7400 -
DCI Dredge XVI 2000 7400 -
DCI Dredge XVII 2001 7400 -
DCI Dredge XIX 2012 5500 -
DCI Dredge XX 2013 5500 -
DCI Dredge XXI 2013 5500 -
Cutter suction Hopper Dredger (CSD)
DCI Dredge VII 1976 - 1000
DCI Dredge Aquarius 1977 - 3500
DCI Dredge-XVIII 2009 - 2000
Back- Hoe Dredger
DCI Dredge-BH1 2011 - -


The Company is catering to the dredging requirements of the Haldia/ Kolkata Port forthe past thirty years. The Company also caters to the maintenance dredging requirements ofother major ports/ India Navy etc. The Company is taking up capital dredging assignmentsdepending on the availability of the vessels and other logistic requirements.

During the year under review maintenance dredging contracts were executed for KolkataPort Haldia Kandla Cochin Port Trust Ernakulam RGPPL-Dabhol and NST and itsapproaches of VPT. Capital Dredging Contracts were executed at Kandla Port Kamarajar Portand Visakhapatnam Port.

The above works were executed either under the existing contracts or renewal of thecontracts entered into with the Ports etc. during the previous years or new contractsentered into during the year.


The Company has signed Memorandum of Understanding (MOU) with Government of India forthe year 2015-16. The Company is expecting a rating of "Very Good" for 2015-16.


The Governmnet of India has disinvested 5% of the paid up share capital i.e 14 lakhsshares during August 2015 through OFS mechanism of Stock Exchanges. After thedisinvestment the shareholding oof Government of India in the Company is 73.56%.


(a) All dredgers (except DCI Multicat-01 Dr. VII Dr. XVIII and Tug- VII) of DCI holdvalid Safety Management Certificates (SMC).

(b) DCI holds a Document of compliance (DOC) valid till 24-06-2017. The same is beingendorsed every year after annual verification audit by DG Shipping.


All dredgers (except DCI Multicat-01 Dr. VII Dr. XVIII and Tug - VII) of DCI holdvalid International Ship Security Certificates (ISSC).


DCI is certified for Quality Management System (ISO 9001:2008) and the certificate isvalid till 14th September’ 2018. The QMS surveillance audit is beingcarried out every year by IRQS as part of certification of the system.


DCI is certified for Environmental Management System (ISO 14001:2004) and thecertificate is valid till 14th September’ 2018. The EMS surveillance auditis being carried out every year by IRQS as part of certification of the system.


The shares of the Company are listed on Mumbai Kolkata and National Stock Exchanges.The shares of the Company are dematerialised with both the depositories NSDL and CDSL.The tax free bonds are listed with the Stock Exchange Mumbai.

M/s. Karvy Computershare Private Limited Hyderabad are the R & T Agents of theCompany.

M/s CATALYST TRUSTEESHIP LIMITED (formerly GDA Trusteeship Ltd.) Pune is theTrustee for the Tax free bonds issued in the year 2013-14.


a) The extract of the Annual Return as provided under Sub-section (3) of Section 92 ofthe Companies Act 2013 in form no. MGT - 9 is placed as Annexure - 1.

b) Number of meetings of the Board :- Seven Board Meetings were held during thefinancial year 2015-16. Further details are provided in the Corporate Governance Report.

c) Directors’ Responsibility Statement : - Pursuant to the provisions of Section134 (5) of the Companies Act 2013 your Directors state that :

(i) in the preparation of the Annual Accounts the applicable accounting standards hadbeen followed along with a proper explanation relating to material departures;

(ii) the Directors had selected such accounting policies and applied them consistentlyand made judgements and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit or loss of the company for that period;

(iii) the Directors had taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and preventing and detecting fraud and other irregularities;

(iv) the Directors had prepared the Annual Accounts on a going concern basis; and

(v) the directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.

(vi) the directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

d) Statement on declaration by the independent directors under section 149 (6):- Duringthe year 2015-16 w.e.f 23rd March 2016 two independent directors wereappointed. Both the independent directors have submitted the required declaration undersection 149(6)

e) The Directors of the Company are appointed by Government of India as per the normspertaining to qualifications etc. prescribed by Government of India. The whole timedirectors are paid remuneration as prescribed by Government of India from time to time.The Independent directors are paid only sitting fees of 10000/- for attending each meetingof the board or committee thereof and are not paid any other remuneration. The Part-timeofficial (Government) Directors are not paid any remuneration by the Company. The KeyManagement personnel are paid as per the norms fixed by the department of publicenterprises from time to time. The Company has constituted Nomination and Remunerationcommittee as per Section 178 consisting of two Independent Directors and One part-timeofficial Director.

f) Explanations or comments by the Board on every qualifications reservation oradverse remark or disclaimer made :-



We draw attention to the following matters in the Notes to the financial statements.Our opinion is not qualified in respeect of this matter.

a) Componentization: (Refer note No. V of the financial statements)

As per note 4 of Schedule II to the Companies Act 2013 -’’Useful lifespecified in Part C of the Schedule is for whole of the asset. Where cost of a part of theasset is significant to total cost of the asset and useful life of that part is differentfrom the useful life of the remaining asset useful life of that significant part shall bedetermined separately."

The above requirement is commonly known as ‘component accounting’. Companiesare required to identify and depreciate significant components with different useful livesseparately.

However management is of the view that no component is having more than 10% value oftotal cost of the dredger hence component accounting is not applicable.

b) We draw attention to the Note No VI of the financial statements where in theCompany has made investments in Equity shares amounting to Rs 3000 lakhs in SethusamudramCorporation Limited(SCL) a Special Purpose Vehicle that was incorporated on 06.1.2004 fordeveloping the Sethusamudram Channel Project. The dredging work at Palk Strait wassuspended from 16-07-2009. Since the Balance sheet as on 31st March 2015 ofSethusamudram Corporation Limited (SCL) is showing positive net worth Management does notconsider any diminution in the value of the investment.

c) Trade Receivables includes 11433.18 lakhs receivable from M/s SethusamudramCorporation Ltd.(SCL) which is pending for more than 3 years. Out of the above Companyhas provided for doubtful debts to the extent of 3019.27 lakhs. The company is of the viewthat an amount of 30897.00 lakhs will be reimbursed by GOI (at whose behest the contractwith SCL was entered) to DCI to compensate the actual expenditure incurred on thisproject. In view of this a provision for doubtful debts is not made in respect ofreceivables in this regard amounting to Rs 8413.91 lakhs.

d) The balances of sundry debtors creditors loans and advances other receivable andother payables being subject to confirmation and reconciliation resulting in the balancesas per books of account not verified by us.

Management’s Reply to Emphasis of Matter: The above emphasis of matters at Sl.(a)(b) and (c) include the views of the management on the same. With regard balance of sundrydebotrs etc. at Sl.No. (d) above it is stated that confirmation for some of the amountsparticularly with regard to sundry debtors due from various ports etc. for the worksexecuted by DCI and/or bills raised for the same are to be received.



"We further report that the Board of Directors of the Company is not properlyconstituted with proper balance of Executive Directors Non-Executive Directors andIndependent Directors."


Management’s Reply : The Company is a Government of India Undertaking and as perthe Articles of Association of the Company the Directors are to be appointed by thePresident of India. At present there are three vacancies in the posts of independentdirectors. The company has taken up the issue for filling up the vacancies with theadministrative Ministry - Ministry of Shipping and the same is under consideration bythem.

g) particulars of loans guarantees or investment under Section 186 :- Details ofinvestment given under the respective head in the financial statement:- The Company hasnot given any loans or guarantees.

h) particulars of contracts or arrangements with related parties referred to in Section188 (1) :- The Company has no contracts or arrangements with related parties referred toin Section 188 (1). IIn terms of Accounting Standard 18 (Revised-2014) no disclosure isrequired in the financial statements of State controlled enterprise (An enterprise whichis under the control of the Central Government and/or State Government) as regards relatedparty relationships with other State controlled enterprises and transactions with suchenterprises. The related party transactions of DCI for the year 2015-16 are mainly withother State controlled enterprises. During the year under review the Company has notentered into financial or other transactions of material nature with its Promoters theDirectors and senior management that may have potential conflict with the interests of theCompany at large and/or which are not in normal course of business. There have been noloans/advances/investments or any other transactions with any of the entities in whichDirectors are interested as per the disclosures given by them coming within the purviewand requiring disclosure under related party transaction under the stated Accountingstandrad. As such disclosure under Form AOC-2 of Companies (Accounts) Rules 2014 is"NIL".

(i) the state of the company’s affairs :- This has been explained elsewhere inthis report.

(j) the amounts if any which it proposes to carry to any reserves: The followingamounts have been transferred to different reserves during the year:-

a) Tonnage Tax Reserve u/s 115VT of the IT Act. - Rs 2020 Lakhs
b) Transfer to General Reserve - 800 Lakhs
c) Transfer to Debenture Redemption Reserve - Rs 600 Lakhs.

(k) the amount if any which it recommends should be paid by way of dividend: statedelsewhere in this report

(l) material changes and commitments if any affecting the financial position of thecompany which have occurred between the end of the financial year of the company to whichthe financial statements relate and the date of the report: Nil

(m) the conservation of energy technology absorption foreign exchange earnings andoutgo:

i) Conservation of energy : The following measures have been taken:

• All the dredgers in DCI fleet are installed with sophisticated and state-of-theart instrumentation like Differential Global Positioning System (DGPS) and Draft VolumeLoad Monitoring (DVLM) system to facilitate efficient dredging with potential energysaving.

• While procuring new dredgers fuel efficient design with advanced technology isselected. Online Fuel monitoring system is being installed on the vessels for monotoringand control of fuel consuption.

• Continuous efforts are being made to optimise the fuel consumption on boarddredgers as cost of fuel constitutes approximately 40% of operational cost.

ii) Technology absorption: There was no transfer of technology and consequently thereis no absorption of technology during the year.

iii) Foreign Exchange earnings and outgo: ( Rs In Lakhs)
1) Foreign Exchange Earnings : 0.00
2) Foreign Exchange outgo:
a) Import of components and spares (CIF value) 5265.75
b) Payment of interest on foreign currency loan 2043.02
c) Repayment of installment of foreign currency loan 12062.84
d) Foreign travel 11.50 19383.11

(n) a statement indicating development and implementation of a risk management policyfor the company including identification therein of elements of risk if any which in theopinion of the Board may threaten the existence of the company:

The Company has in place a Risk Management Policy to drive a common integrated view ofrisks optimal risk mitigation responses and efficient management of internal control andassurance activities. The Risk Management Committee has been constituted. The threatsrisk and concerns are discussed in the Management Discussion and Analysis Report.

(o) the details about the policy developed and implemented by the company on corporatesocial responsibility initiatives taken during the year:

The Company has in place a Corporate Social Responsibility Committee and a CorporateSocial Responsibility and sustainability Policy. During the year 2015-16 the amount to bespent under CSR as per Companies Act is 83.86 lakhs. The Company has spent 120.50 lakhsduring the year and including the rolled over amount to next year of 47.91 lakhs itaggregates to 168.41 lakhs. The particulars of the CSR activities in the prescribed formatas required under the Companies Act are given in Annexure -II

(p) a statement indicating the manner in which formal annual evaluation has been madeby the Board of its own performance and that of its committees and individual directors;

The Board of Directors of the Company are appointed by Government of India. Theadministrative Ministry - Ministry of Shipping reviews the performance of the Company onregular basis. The performance reports of the whole time directors are reviewed by theMinistry on Annual basis.


As per Notification No. GSR 463(E) dated 5/6/2015 issued by 5th June 2015 issued bythe Ministry of Corporate Affairs Government Companies are exempted from complying withprovisions of Section 197 of the Companies Act 2013. Therefore such particulars have notbeen included as part of Directors’ Report.


This is a continuous process and DCI procures spares and stores on a regular basis fromsuppliers spread all over the world. DCI is updating the supplier-base continually.


Online fuel monitoring system is being is being installed on our vessels for havingcontinuous monitoring and control of the consumption of fuel.


As part of import substitution the Company has signed agreement with another PSU fordesign manufacture and supply of the spare parts indigenously.


Pursuant to the DPE Guidelines and SEBI (LODR) Regulations Management Discussion andAnalysis Report Corporate Governance Report and Certificate from the Company Secretary inpractice regarding compliance of conditions of Corporate Governance are attached formingpart of this Report.


The total number of employees (both Shore and Floating) in the Corporation as on 31stMarch 2016 was 523 as against 566 during the previous year.


The manpower position with regard to various reserved categories is as indicatedhereunder:

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfill its obligation in providing employmentopportunities to SC/ST candidates in accordance with the Government Policy. The overallrepresentation of SC/STs in the Corporation (both Shore and Floating Establishments butexcluding MPWs) as on 31st March 2016 is as under:-

Sl. No. Shore/ Floating Total SC % ST %

Prescribed %

Establishment SC ST
1 Shore 324 59 18.20 21 6.48 16.66 7.5
2 Floating 199 28 14.07 9 4.52 16.66 7.5

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (both Shore and Floating) in group C and Dcategories in the Corporation was 1.17% and Nil as against the percentage of 10% and 20%respectively as prescribed by the Government.

C. Employment of Physically Handicapped

The number of physically handicapped employees in the Corporation as on 31stMarch 2016 is 8 (Eight) the group-wise break-up A B C & D is as furnishedhereunder:-

Group Total Strength No. of persons with disabilities actually Employed Percentage with reference to identified posts
A 183 05 2.73
B 41 01 2.43
C 85 02 2.35
D 15 Nil Nil
Total 324 08 2.46

The Physically handicapped persons are being paid additional conveyance assistance asper the Government instructions.

D. Employment of women

The number of women employees on Rolls as on 31st March 2016 is 52 asagainst 53 as on 31st March 2015. Out of them number of executives is 19 andNon-Executives is 33.

Compliance with Government’s Policy on Women:

Basing on the Supreme Court’s judgement and keeping in view the Governmentinstructions on sexual harassment of women at work places a complaints Committee headedby a woman officer was constituted to inquire into the complaints of sexual harassment atwork places. A complaints register is also being maintained.

DCI is a Life Member of the Forum for Women in Public Sector and one womenrepresentative from DCI has been nominated to the above forum. Apart from the TradeUnions the problems if any relating particularly to women employees are looked into asand when the same are brought to the notice of the Management.


i) The women employees in the Corporation are entitled to 180 days of Maternity Leave.

ii) Special Casual leave not exceeding 14 working days is sanctioned to regular womenemployees of the Corporation to undergo non-puerperal sterilisation.

iii) One day special casual leave is allowed to the regular women employees of theCorporation who had ICUD insertions.

iv) Basing on Apex Court’s judgement and keeping in view the Governmentinstructions on Sexual harassment of Women at work places a Compliants Committee headedby a Woman Officer was constituted to inquire into the complaints of Sexual Harassment atwork places. A Compliants Register is also being maintained.

v) DCI is a Life Member of the Forum for Women in Public Sector and one womenrepresentative from DCI has been nominated to the above forum. Apart from the TradeUnions the problems if any relating particularly to women employees are looked into asand when the same are brought to the notice of the Management.

vi) As a welfare measure a Rest Room is provided exclusively for the women employees.

vii) Working uniforms are provided to Group’D’ women employees as per thescales prescribed in the Rules.

viii) The women employees of DCI are sponsored to various in-house and also externaltraining programmes. 47women employees had undergone training during the year 2015-16.

xi) Women’s Day was celebrated on 08.03.2016 in DCI.



i) The INSA-MUI (FG/HT) Agreement in respect of Floating Officers for the periods from2012 to 2015 is revised and implemented w.e.f. 01.04.2014

ii) The INSA-NUSI Agreement relating to HT Petty Officers for the periods 2012-15 hasbeen implemented.

iii) The Wage Agreement of Crew/MPWs for the period from 2012-15 has been implemented.


i) The Revised Pay Scales of Executives have been implemented w.e.f. 01.01.2007.

ii) The wage revision of Non-Executive employees in the Shore Establishment has beenimplemented w.e.f.01.01.2007.


The industrial relations in the Corporation continued to be cordial throughout the yearunder report.


The Corporation continued various welfare schemes viz. Family Pension Scheme GroupGratuity Assurance Scheme Personal Accident Insurance Coverage Group Savings LinkedInsurance Scheme Contributory Provident Fund Maternity Benefit Scheme SubsidisedCanteen Facility Transport Subsidy Medical Attendance Leave Travel ConcessionIncentive Scheme for acquiring higher qualifications Merit Scholarships for the childrenof SC/ST employees and Mediclaim medical attendance facility for the retired employeesetc. Other welfare measures such as House Building Advance HBA Interest Subsidy HBAFamily Security Mutual Fund Special casual leave for maternity/paternity and incentivesfor adopting small family norms and advances for children’s higher educationmarriage and purchase of computer etc. are extended to the employees.


The Corporation is making sincere and concerted efforts for the overall development ofHuman Resources.

i) During the year 2015-16 252 employees were trained in various training programmes.

ii) During the year 2015-16 15 DCCP Apprentice Trainees and 10 Industrial Traineeswere inducted for training for a period of 12 months.


As per the Directives of the Government of India the Corporation implemented the Rightto Information Act 2005 w.e.f. 12.10.2005 and made all required infrastructualarrangements such as appointment of Public Information Officers Asst. Public InformationOfficers and Appellate Authority; set-up of procedure and submission of periodical reportson the progress of implementation of the Act. A register is maintained for monitoring therequests from public seeking information and the replies by the concerned are also beingco-ordinated. Required periodical reports on the implementation of RTI/ Status of RTIreplies are being furnished to the Ministry CIC from time to time.


A Public Grievance Cell has been functioning in the Corporation since 1988 to look intothe Grievances/Complaints received from the Public. Company Secretary is designated as theDirector of Public Grievances. As per the Ministry’s guidelines a status report isbeing submitted for the information of the Board of Directors at the Board meetings and aquarterly status report is forwarded to the Ministry. In line with the Ministry’sdirection a Public Grievance Redressal and Monitoring System (PGRAMS) software wasinstalled in the Computer Network in the Corporation which works in hand-shake modebetween the Ministry and the Corporation. Complaints received during the year weresuitably replied to.


In order to ensure transparency in the functioning of the Corporation and also for easyand speedy access for any information to the public an Information and FacilitationCounter (IFC) has been set up at DCI Head Office Visakhapatnam and the same is notifiedin the web-site also.


The Corporation continued its efforts to implement the Official Language Policy of theGovernment an Incentive Scheme to award cash prizes etc. is in vogue in the Corporationand employees trained under in-service training in Hindi and qualified in variousexaminations conducted thereunder are being awarded cash awards.

Hindi week was celebrated during September 2015. Three Hindi workshops were conductedfor employees to impart working skills in drafting & noting in Hindi and in UNICODEHindi Typing operation of Bilingual softwares etc. One Hindi Seminar on the Problems andSolutions in the Implementation of Official Language in South India was conducted on24.12.2015 and employees from CGOs PSUs located at Visakhapatnam participated in theabove OL Seminar. Several programs in Hindi were conducted during the year

Computerization of forms / correspondence and reports in Hindi was implemented invarious departments. Several formats PF Statements letter-heads visiting cards bannersand other items of stationery are printed / made bilingual and the same are made availableon the computers. Web-site information was also updated in Hindi. Unicode was installed invarious functional Departments.

Issue of Office Orders / Circulars Reports submitted to Government and ParliamentaryCommittees was ensured in bilingual. ISM Policy ISM Code all ISM Manuals SafetyInstructions etc. were translated into Hindi. Correspondence in Hindi was extended tosome more areas of work - such as RTI and Public Grievances etc. The officers of theCorporation actively participated in the meetings and activities of the Town OfficialLanguage Implementation Committee Visakhapatnam during the year.


As per the directives of the Government of India to focus on the commitment of DCItowards its citizens / clients in respect of standard of services information choice andconsultation non-discrimination and accessibility grievance redress courtesy and valuefor money including expectations of the Organisation from the citizen/client forfulfilling the commitment of the Organisation a Citizens’ Charter approved by theCompetent Authority was posted on the Corporate website.

As part of requirement thereof a Task Force has been re-constituted withrepresentatives from the Management and Staff Unions as well as from the VisakhapatnamPort Trust a local clientele organisation. The Task force attends to the duties asprescribed by the Department of Administrative Reforms and Public Grievances. The HoD (HR)is designated to be the Nodal Officer to coordinate and monitor the formulation andimplementation of the Citizens Charter in DCI who also functions as the Member Secretaryof the Task Force.


A new Accounting Policy for accounting for post retirement medical and pensionsbenefits has been included pursuant to the approval for post retirement medical andpension schemes by administrative Ministry. The efffect on profits for the year due to theintroduction of the policy has been disclosed in Note No. XIII to the Financial results.


During the year 2015-16 the Vigilance department has taken significant measures tointegrate its activities with other departments of the Corporation and provide apro-active orientation to interface it with managerial process. As a part of the sameperiodic surprise and CTE type inspections have been carried out and systemicdeficiencies and irregularities noticed have been communicated to concerned departmentsfor necessary action.

Systematic improvements were suggested in recruitment procedure disposal ofunserviceable equipment and scrap and deduction of statutory taxes from bills ofcontractors.

Vigilance Awareness week was observed during 26th October 2015 to 31stOctober 2015. In association with Visakhapatnam Port Trust DCI organized a paneldiscussion on the topic "Prevention of Corruption is first step in NationalDevelopment" in the Visakhapatnam public library. For creating and spreadingawareness on corruption and its ill effects among the general public awareness walk wasorganized by DCI on 31st October 2015 at R.K Beach Road Visakhapatnam. Aspecial edition of vigilance bulletin "Alert" was released by CMD.

Leveraging technology E-Publishing/ E-procurement: the company has made 42procurements through E-procurement system of NIC as on 31.03.2016. Many E-initiatives havebeen followed by the Company throughout the year.


M/s Tukaram & Co. Chartered Accountants Hyderabad were appointed by theComptroller and Auditor General of India as Statutory Auditors for auditing the accountsof the Company for the financial year 2015-16. Pursuant to Section 142 (1) of theCompanies Act 2013 the remuneration of the Auditors has to be approved by the Members atthe AGM. The Board recommends the remuneration of Rs 3.50 lakhs plus service tax asapplicable for the year 2015-16 for approval of the Members at this AGM. INDEPENDENTAUDITORS’ REPORT

The Independent Auditors’ Report on the Accounts for 2015-16 given by theStatutory Auditors is placed along with the Accounts. Management Comments to the Emphasisof matters of the Auditors have been given elsewhere in this report.


The report of the Secretairial Auditros - M/s P.N.Rao & Co. pursuant to Section 204of the Companies Act 2013 and Rules made thereunder is placed after the Director’sReport. The comments/ replies of the mangement of the qualification of the Secretarialauditor has been given elsewhere in this report.


The Comptroller and Auditor General of India has issued "NIL" Comments on theAccounts of the Company for the year ended 31st March 2016 and the same areplaced next to the Statutory Auditor’s Report.


As per the Articles of Association of the Company all the Directors are appointed bythe President of India as communicated through the administrative Ministry - Ministry ofShipping.

Ministry of Shipping vide its letter dated 21/03/2016 communicated appointment of Ms.Sheila Sangwan and Dr. Ms. Vrushali Rajendra Waghmare as Non-official Part-time Directorsof the Company. The above two directors have taken over charge w.e.f. 23/03/2016. Theformal appointment of these two Directors is being proposed in this meeting.

It is also proposed to retire and re-appoint Shri S.Charles Director (Finance) in thismeeting

The directors recommend for approval of the Members the above appointments/re-appointment.


The Directors thank Hon’ble Minister of Shipping and officers and staff ofMinistry of Shipping for the valuable help assistance and guidance rendered from time totime. The Directors thank all other Ministries for the help and co-operation extended bythem. The Board is grateful to the Comptroller & Auditor General of India the MemberAudit Board and the Statutory Auditors for their cooperation. The Board also thanks theBankers of the Company for their valuable services. The Board expresses its gratitude tothe valued customers for their continued patronage.

The Directors place on record their appreciation of the services rendered by all theemployees of the Corporation.

For and on behalf of the Board of Directors
Place : Visakhapatnam RAJESH TRIPATHI