DREDGING CORPORATION OF INDIA LTD.
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
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