The year under review has been full of challenges. Oil prices tumbled not withoutprecedent but certainly beyond anticipation which resulted into low operating margins foroffshore sector and added further pressure to our cash flows. With the slow recovery inoil prices the charter market is depressed in 2016 as was the case in 2015 coupled withfiercer competition from domestic as well as foreign players all vying for a share in theIndian offshore business.
The Company continued to reel under financial stress during the year underconsideration. Members will recall my last year's address when I had struck a note ofcaution due to the extreme squeeze on cash flows being faced by the Company and thevarious austerity measures taken to address this. While continuing to focus even morerigorously on these measures during the year to reduce debt burden of the Company andconsequent interest liability for the future Strategic Debt Restructuring was invoked inthe Company by the lenders with effective date of January 27 2016. Seven lenders haveconverted part of their outstanding debts aggregating Rs. 17957 lacs as on August 232016.
Inspite of all these adverse factors the Company has been able to secure charter onlong term contract for Rig Badrinath with Oil and Natural Gas Corporation Limited (ONGC).
While the conditions are no doubt onerous and challenging we are confident of tidingover these given our inherent strengths fostered over the years.
I take this opportunity to thank all our employees for their hard-work and dedicationduring such challenging times. I also take this opportunity to thank my fellow Boardmembers for their guidance and support. Finally a sincere word of gratitude andacknowledgment towards all our stakeholders including our bankers shareholders customersand suppliers who have reposed trust in us and remained supportive in all our endeavoursand continue to do so as we move ahead to face another challenging year.
Prakash Chandra Kapoor