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Dredging Corporation of India Ltd.

BSE: 523618 Sector: Others
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OPEN 424.05
VOLUME 37246
52-Week high 800.00
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Mkt Cap.(Rs cr) 1,171
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Sell Price 0.00
Sell Qty 0.00
OPEN 424.05
CLOSE 421.80
VOLUME 37246
52-Week high 800.00
52-Week low 286.60
Mkt Cap.(Rs cr) 1,171
Buy Price 0.00
Buy Qty 0.00
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 42nd Annual Report togetherwith the audited accounts of the Company for the year ended 31st March 2018.


The Profit after tax of the Company is `1664.27 lakh for the year as compared to`712.27 lakh for the previous year. The Company's earning per share is `5.94 for 2017-18as compared to `2.54 for 2016-17. The operational income of the Company is `59187.36 lakhas compared to ` 58587.17 lakh for the previous year. The other income is `2025.54 lakh ascompared to `1381.78 lakh for the previous year. The total income for the year is`61212.90 lakh as compared to `59968.95 lakh for the previous year.


Keeping in view the financial performance of the Company and other relevantconsiderations your Directors have recommended payment of dividend @ 20% on the paid upcapital of the company i.e `2 per equity share amounting to `560 lakh for the year2017-18.


The capacity utilisation in number of days and quantity dredged as against the targetsduring the year is as under:-

Target Actual % Utilisation
No. of Days 2771 2459 88.74
Quantity (Mln. Cu.M) 60 47 77.79


The Company has 11 Trailer Suction Hopper Dredgers (TSHDs) 2 Cutter Suction Dredgers(CSDs) one Back Hoe Dredger and one Inland Cutter Suction Dredger apart from otherancillary crafts . Two vessels DCI Dredge VII and DCI Dredge IX have been decommissionedand sold as scrap during the year.


The Company has secured on tender basis the dredging contract at Haldia/ Kolkata Portfor five years from 1/1/2017. The Company has been performing the dredging at the 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 Cochin Port Trust Cochin Shipyard RGPPL-Dabhol Gangavaram Mumbai Port Trust andNew Sand Trap and its approaches of Visakhapatnam Port Trust. Capital Dredging Contractswere executed at Paradip Port Bangladesh Andaman and Nicobar island Puducherry Goghaand Dahej.

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 2017-18. The Company is expecting a rating of "Good" for 2017-18.


(a) All dredgers (except Tug-VII and dumb vessels- DR-XVIII and ID Ganga) of DCI holdvalid Safety Management Certificate (SMC). (b) DCI holds a Document of Compliance (DOC)valid till 24.06.2022. The same is being endorsed every year after annual verificationaudit by DG Shipping.


All dredgers (except Tug-VII and dumb vessels- DR-XVIII and ID Ganga) of DCI holdsvalid International Ship Security Certificate (ISSC).


DCI is certified for Quality Management System (ISO 9001:2008) and the certificate isvalid up to 14 th September 2018.The QMS surveillance audit is being carriedout 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 up to 14th September 2018.The EMS surveillance audit isbeing carried out every year by IRQS as part of certification of the system.


Implemented ISO 14001: 2015 (Environment Management System.) Installed Sewage TreatmentPlants onboard vessels.

Compliance to MARPOL 73/78 Regulations i.e (lnternational Oil PollutionPreventionlOPP)

Environmental awareness amongst the employees and floating personnel is being doneonboard dredgers Project offices and Head Office on a regular basis.


The shares of the Company are listed on BSE Calcutta and National Stock Exchanges. Theshares of the Company are dematerialised with both the depositories NSDL and CDSL. Thetax free bonds are listed with the Stock Exchange Mumbai. M/s. Karvy ComputersharePrivate Limited Hyderabad are the R & T Agents of the Company. M/s CATALYSTTRUSTEESHIP LIMITED (formerly GDA Trusteeship Ltd.) Pune is the Trustee for the Tax freebonds issued in the year 2013-14.

THE REQUIRED PARTICULARS ETC. PURSUANT TO SECTION 134 (3) OF THE COMPANIES ACT 2013ARE AS UNDER:-a) The extract of the Annual Return as provided under Sub-section (3) ofSection 92 of the Companies Act 2013 in form no. MGT –9 is placed as Annexure –1. b) Number of meetings of the Board :- During the financial year 2017-18 the company hasheld six Board Meetings. Further details are provided in the Corporate Governance Report.c ) Directors' Responsibility Statement : - Pursuant to the provisions of Section 134 (5)of the Companies Act 2013 your Directors state that : (i) in the preparation of theAnnual Accounts the applicable accounting standards had been followed along with a properexplanation relating to material departures; (ii) the Directors had selected suchaccounting policies and applied them consistently and made judgements and estimates thatare reasonable and prudent so as to give a true and fair view of the state of affairs ofthe company at the end of the financial year and of the profit or loss of the company forthat period; (iii) the Directors had taken proper and sufficient care for the maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and preventing and detecting fraud and otherirregularities; (iv) the Directors had prepared the Annual Accounts on a going concernbasis; 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)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 eachmeeting of the board or committee thereof and are not paid any other remuneration. ThePart-time official (Government) Directors are not paid any remuneration by the Company.The Key Management 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. e ) Explanations or comments by the Board on every qualificationsreservation or adverse remark or disclaimer made :-



We draw attention to the following matters in the Notes to the financial statements.Our opinion is not qualified in respect of this matter. a) Trade Receivables includes `11433.18lakhs receivable from M/s Sethusamudram Corporation Ltd.(SCL) which is pending for morethan 4 years. Out of the above Company has provided for doubtful debts to the extent of `3019.27lakhs. The company is of the view that this will be reimbursed by GOI (at whose behest thecontract with SCL was entered) to DCI to compensate the actual expenditure incurred onthis project. In view of this a provision for doubtful debts is not made in respect ofreceivables in this regard amounting to `8413.91 lakhs. b ) The balances of sundrydebtors creditors loans and advances other receivables and other payables being subjectto confirmation and reconciliation resulting in the balances as per books of account notverified by us.


Management reply to emphasis of matter:

The above emphasis of matters at Sl. (a) include the views of the management on thesame.

With regard to balance of sundry debtors etc. at Sl.No. (b) above it is stated thatconfirmation for some of the amounts particularly with regard to sundry debtors due fromvarious ports etc. for the works executed by DCI and/or bills raised for the same are tobe received.



1. Compliance of Section 149(4) of the Companies Act 2013 Regulation 17 ( 1) ofSecurities and Exchange Board of India ( Listing Obligations & DisclosureRequirements) Regulations 2015 and Clause 3.1.4 of the DPE Guidelines on CorporateGovernance for Central Public Sector Enterprises w.r.t. composition of the Board ofDirectors of the Company.

2. Compliance of Regulation 17 (10) & 25 (4) of Securities and Exchange Board ofIndia (Listing Obligations & Disclosure Requirements) Regulations 2015 w.r.t.Performance evaluation of the Directors.


Management's reply

The Company is a Government of India Undertaking and as per the Articles of Associationof the Company the Directors are to be appointed by the President of India. The issue ofappointment of requisite number of independent directors has been taken up with theadministrative Ministry - Ministry of Shipping and the same is pending with them. Theperformance evaluation of the Whole-time Directors and Part time official Directors isdone by the Government of India. The independent Directors have carried out theperformance evaluation of the other directors during the independent directors meetingheld on 15/3/18. f ) particulars of loans guarantees or investment under Section 186 :-details of investment given under the respective head in the financial statement. TheCompany has not given any loans or guarantees.

g) 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). In terms of Accounting Standard 18 (Revised-2000) 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 2017-18 are mainly withother State controlled enterprises.

During the year under review the Company has not entered into financial or othertransactions of material nature with its Promoters the Directors and senior managementthat may have potential conflict with the interests of the Company at large and/ or whichare not in normal course of business. As such disclosure under Form AOC-2 of Companies(Accounts) Rules 2014 is "NIL". h) the state of the company's affairs :- Thishas been explained elsewhere in this report.; i) the amounts if any which it proposes tocarry to any reserves: The following amounts have been transferred to different reservesduring the year:-

a) Tonnage Tax Reserve u/s 115VT uitilisation of the IT Act `525 Lakhs
b) Transfer to General Reserve NIL
c ) Transfer to Debenture Redemption Reserve NIL

j) Dividend @20% i.e `2 per equity share is recommended for approval of shareholders atthis AGM. The same will be paid within 30 days after the date of declaration. k) materialchanges and commitments if any affecting the financial position of the company whichhave occurred between the end of the financial year of the company to which the financialstatements relate and the date of the report: Nil l) the conservation of energytechnology absorption foreign exchange earnings and outgo: i) Conservation of energy :The following measures have been taken: All the dredgers in DCI fleet are installed withsophisticated and state-of-the art instrumentation like Differential Global PositioningSystem (DGPS) and Draft Volume Load Monitoring (DVLM) system to facilitate efficientdredging with potential energy saving.

While procuring new dredgers fuel efficient design with advanced technology isselected.

Continuous efforts are being made to optimise the fuel consumption on board dredgers ascost of fuel constitutes approximately 35-45% of operational cost. ii) Technologyabsorption: There was no transfer of technology and consequently there is no absorption oftechnology during the year.

iii) Foreign Exchange earnings and outgo: (` In Lakhs)
i) Foreign Exchange Earnings : 0.00
Total 0.00
ii) Foreign Exchange outgo:
a) Import of components and spares (CIF value) 4676.91
b) Payment of interest on foreign currency loan


c ) Repayment of installment of foreign currency loan


d) Foreign travel


Total 19172.21

m) 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 aRisk Management Policy to drive a common integrated view of risks optimal risk mitigationresponses and efficient management of internal control and assurance activities. The RiskManagement Committee has been constituted. The threats risk and concerns are discussed inthe Management Discussion and Analysis Report.

n) the details about the policy developed and implemented by the company on corporatesocial responsibility initiatives taken during the year: The Company has in place aCorporate Social Responsibility Committee and a Corporate Social Responsibility andsustainability Policy. During the year 2017-18 the amount required to be spent under CSRis ` 107.03 lakh. Against this the Company spent `109.42 Lakhs. The particulars of theCSR activities in the prescribed format as required under the Companies Act are given inAnnexure –II. o) a statement indicating the manner in which formal annual evaluationhas been made by the Board of its own performance and that of its committees andindividual directors; The Board of Directors of the Company are appointed by Government ofIndia. The administrative Ministry – Ministry of Shipping reviews the performance ofthe Company on regular basis. The performance reports of the whole time directors arereviewed by the Ministry on Annual basis. The independent Directors have carried out theperformance evaluation of the other directors during the independent directors meetingheld on 15/3/2018.


Keeping in view the financial performance of the Company and other relevantconsiderations your Directors have recommended payment of dividend @ 20% on the paid upcapital of the company i.e `2 per equity share amounting to ` 5.60 Cr. which includingdividend tax comes to ` 6.74 Cr. for the year 2017-18 and would be paid after the AGM.


As per Notification No. GSR 463(E) dated 5/6/2015 issued by 5th June 2015issued by the Ministry of Corporate Affairs Government Companies are exempted fromcomplying with provisions of Section 197 of the Companies Act 2013. Therefore suchparticulars have not been 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. DCIhas adopted e-procurement process as per Govt. of India guidelines emphasis was given tofacilitate and enable the vendors by way of training support and hand holding support toparticipate in the e-procurement processes of the company. DCI has organized a State LevelVendor Development programme in association with local Micro Small and & MediumEnterprises (MSME) Office(Visakhapatnam Branch) and has been continuously participatingand interacting with the prospective vendors in most of the vendor development program cumBuyers- Sellers meet conducted by Ministry of MSME/ National Small Industries Corporation(NSIC) . The Company has invited MSME vendors to visit DCI's vessels for identification ofspares for indigenization. Tenders are published in DCI official website and CentralPublic Procurement Portal for wider publicity so that MSMEs can participate. In view thatout of the total annual procurment a major portion is fuel which cannot be procured fromMSME Vendors and further that since most of dredgers of DCI have been bult at Netherlandsand therefore most of the spare need to be imported from OEMs abroad the Company hasrepresented for relaxation for implementation of the Public Procrurement Policy mandatoryprovision of 20% procurement from MSMEs.


DCI Dredge Aquarius was fitted with an indigeniuously developed Programmable LogicController (PLC) in place of existing PLC system which was imported and giving frequentproblems because of non-availability of spare parts/ services of the Orginal EquipmentManufacturer abroad.The newly installed PLC has been found to be cost effective andworking satisfactorily.


Pursuant to the DPE Guidelines and SEBI (LoDR) Regulations 2015 Management Discussionand Analysis Report Corporate Governance Report and Certificate from the CompanySecretary in practice regarding compliance of conditions of Corporate Governance areattached forming part of this Report.


The total number of employees (both Shore and Floating) in the Corporation as on 31stMarch 2018 was as under:-Shore 284 Floating – Regular -143 Contract- 369 512

Total 796


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 2018 was SCs - 70 i.e. 16.43% as againstprescribed percentage of 16.66% and STs 23 i.e. 5.40% as against the prescribedpercentage of 7.5%.

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (both Shore and Floating) (regular employees) ingroup C and D categories in the Corporation was Nil as against the percentage of 14.5% and24.5% respectively as prescribed by the Government. However DCI has been recruitingEx.Servicemen on its dredgers on contract basis.

C. Employment of Physically Handicapped

The number of physically handicapped employees in the Corporation as on 31stMarch 2018 is 6 (Six) the group-wise break-up A B C & D for shore side isfurnished below:-


Total Strength

No. of persons with disabilities actuallyEmployed

Percentage with reference to identified to identified posts

















D. Employment of women

The number of women employees on Rolls as on 31st March 2018 is 44 asagainst 49 as on 31st March 2017. Out of them number of executives is 15 andNon-Executives is 29.

Compliance with Government's Policy on Women:

Basing on the Supreme Court's judgement and keeping in view the Government instructionson sexual harassment of women at work places a complaints Committee headed by a womanofficer was constituted to inquire into the complaints of sexual harassment at workplaces. 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.

EXISTING BENEFITS AND WELFARE MEASURES FOR THE WOMEN EMPLOYEES : i) The womenemployees of the Corporation with less than two surviving children are entitled for 26weeks of Maternity Leave. ii) Special Casual leave not exceeding 14 working days issanctioned to regular women employees of the Corporation to undergo non-puerperalsterilisation. iii) One day special casual leave is allowed to the regular women employeesof the Corporation who had ICUD insertions. iv) As per Apex Court's judgement and basingon the Government instructions a Complaints Committee headed by a Woman Officer wasconstituted to inquire into the complaints of Sexual Harassment at work places. AComplaints Register is also being maintained. v ) Working uniforms are provided toGroup'D' women employees as per the scales prescribed in the Rules. vi) As a welfaremeasure a Rest Room/Recreation is provided exclusively for the women employees. vii) Thewomen employees of DCI are sponsored to various in-house and also external trainingprogrammes. Eight women employees had undergone training during the year 2017-18


Paternity leave of 15 days is allowed to a regular male employee having less than twochildren during confinement of his wife as per Leave Rules of the Corporation.


A. FLOATING ESTABLISHMENT : i) The INSA-MUI (FG/HT) Agreement in respect ofFloating Officers for the periods from 2012 to 2015 is revised and implemented w.e.f.

01.04.2014 ii) The NMB Agreement relating to HT Petty Officers for the periods 2015-19is revised and implemented w.e.f. 01.04.2015. iii) The Wage Agreement of Crew/MPWs for theperiod from 2015-19 is revised and implemented w.e.f. 01.04.2015.

B. SHORE ESTABLISHMENT: i) Pay revision of Executive Employees is implementedw.e.f. 01.01.2017. ii) The wage revision of Non-Executive employees is implemented w.e.f.01.01.2017.


The industrial relations in the Corporation continued to be cordial throughout the year2017-18. The Unions representing the Non-Executives and Crew & Petty Officer ofDredging Corporation of India Limited were on one day strike on 11/4/17 and a three daystrike from 20/12/17 to 22/12/17 in protest against the proposed strategic sale by GOI ofits holding in the Company in which some of the executive employees also supported bytaking leave. Further the employees also participated in relay hunger strike. Howeverthere was no disruption in the operations of the Company.


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 Concession MeritScholarships for the children of SC/ST employees Pension Scheme and DCI Retired EmployeesMedical Trust/Scheme etc. Other welfare measures such as Special Casual Leave formaternity/ paternity are extended to the employees. Staff Welfare Schemes viz. CarAdvance Two wheeler Advance Marriage Advance (Children & Self) Children HigherEducation Advance Festival Advance etc.are provided to the employees.


The Corporation is making sincere and concerted efforts for the overall development ofHuman Resources. i) During the year 2017-18 183 employees were trained in varioustraining programs. ii) During the year 2017-18 15 DCCP Apprentice Trainees and 10Industrial Trainees were 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. The Company Secretary is the Directorof Public Grievances. As per the Ministry's guidelines a status report is being submittedfor the information of the Board of Directors at the Board meetings and a quarterly statusreport is forwarded to the Ministry. In line with the Ministry's direction a PublicGrievance Redressal and Monitoring System (PGRAMS) software was installed in the ComputerNetwork in the Corporation which works in hand-shake mode between the Ministry and theCorporation. Complaints received during the year were suitably 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 & FACILITATIONCOUNTER (IFC) was set up at DCI Head Office Visakhapatnam and the same is publicized inthe 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.

Various Competitions were conducted for employees and nearby school/College studentsduring the Hindi Week Celebration held from 14-21September 2017.

The officers of the Corporation actively participated in the meetings and activities ofthe Town Official Language Implementation Committee (TOLIC)(UT) Visakhapatnam during theyear. 4 Hindi workshops were conducted for employees to impart working skills in drafting& noting in Hindi and in UNICODE Hindi Typing operation of Bilingual softwares etc..

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 toGovernment and Parliamentary Committees and Annual Report of the Corporation were ensuredin bilingual.


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 constituted with representativesfrom the Management and Staff Unions as well as from the Visakhapatnam Port Trust alocal clientele organisation. The Task force attends to the duties as prescribed by theDepartment of Administrative Reforms and Public Grievances. The HoD (HR) is designated tobe the Nodal Officer to coordinate and monitor the formulation and implementation of theCitizens Charter in DCI who also functions as the Member Secretary of the Task Force.


As a measure of preventive vigilance 14 periodic 16 surprise and 01 CTE typeinspections have been taken up during the year. The lapses/ irregularities notices in thisregard have been communicated for taking remedial/ corrective actions. The number ofvigilance cases pending at the begining of the year and end of the year is"Nil". No vigilance cases were initiated during the year.

Vigilance Department is playing a proactive role for continuous simplification andimprovements in systems and procedures and facilitating faster and effective decisionmaking in transparent manner.

The Vigilance Awareness Week 2017 was observed at the Corporate Headquarters andvarious Project Offices of Dredging Corporation of India Ltd. from 30th October2017 to 4th November 2017. CVC's theme for Vigilance Awareness Week 2017 was"My vision- Corruption free India" with emphasis on spreading awareness in fightagainst corruption to all sections of Society. Painting Competition was organised for theschool students in various urban corporate/private schools urban Govt. /Aided schools inVisakhapatnam. In addition to this DCI conducted inter-collegiate Essay writing andElocution competitions in English and Telugu at its Head Office. To create awareness andsensitise public a mass Integrity Pledge was conducted for the citizens including schooland college students on 10th October 2017 at Araku a tribal village wherein2000 citizens took the integrity pledge enthusiastically. Further to spread awarenessagainst corruption amongst the general public Dredging Corporation of India andVisakhapatnam Port Trust organized Vigilance Awareness Walk. A flash mob depicting theevils of corruption and a signature campaign was initiated at the venue in order to takethe integrity pledge by general public.

Systems improvement measures were suggested by the Vigilance department forimplementation.


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 2017-18. 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 `4.50 lakhs plus service tax asapplicable for the year 2017-18 as statutory auditors for approval of the Members at thisAGM.


The Independent Auditors' Report on the Accounts for 2017-18 given by the StatutoryAuditors is placed along with the Accounts. Management Comments to the Emphasis of mattersof the Auditors have been given elsewhere in this report.