It gives me great pleasure to invite you to attend the 36th Annual
General Meeting of the Company. The Annual Report consisting of the
Accounts for the year ended March 31, 2015 and Notice convening the
Annual General Meeting is enclosed herewith.
The results of your Company have not been good as compared to the
previous year. The Turnover was Rs.49.84 Crores during Financial Year
2014-2015 on a standalone basis, as compared to Rs.233.49 Crores for
the Financial Year 2013-2014; the Company reported a loss of Rs.44.36
Crores as against loss of Rs.34.06 Crores as compared to the previous
year. The main reason for the poor performance during this year was due
to the inability of your Company to procure major orders, increased
competition as there was pressure on contractual rates and a prudent
write off of Rs.28.30 Crores. Unfortunately, the Industry especially in
which your Company operates is going through one of the worst recession
during last 4 decades. The management is aware of this and is taking
extensive measures to tide over the current difficult phase and also to
improve its competitive edge in market place. During the year, your
Company did not execute any major EPC contract. The Order Book position
of your Company continues to be very low.
As per information received by your Company, ONGC will be coming out
with the reissue of RUMP I & II tenders and also tenders for revamp
BHS, NQ RC, ICP SHW, WIS platforms etc. valuing Rs.6000 crs to Rs.8000
crs. A substantial portion of this investment will be made in brown
field projects, where your Company has an inherent advantage as it has
in-house capabilities of undertaking such EPC projects on its own.
However, the results of your Company are better on the consolidated
basis. Our wholly owned subsidiary companies, Dolphin Offshore
Enterprises (Mauritius) Pvt. Ltd. (DOEMPL) and Dolphin Offshore
Shipping Ltd. (DOSL) have performed well and results are evident in the
consolidated accounts of the year. DOEMPL has generated a Turnover of
Rs.138 69 crs and profit of Rs.89.50 Crores while DOSL has generated a
Turnover of Rs. 23.27 and profit of Rs.2.97 Crores for the Financial
The Barge, VIKRANT DOLPHIN continues to be on long term charter with
M/s. Representaciones Y Distribuciones Evya SA de CV, 2 (Evya), Mexico
till December 31, 2017 unless the Charter period is extended.
DOEMPL is entering into an Agreement with M/s.Paxocean Engineering
Zhuhai Co. Limited for the construction of a 400 men DP-3 Accommodation
Work Barge and 85M 150 men DP-2 Offshore Construction Vessel. The
expected delivery of these vessels is during the second half of the
calendar year 2017. Besides, your Company is also making lots of
efforts for expanding its business in the Middle East.
In view of the above, I trust that the difficult phase of your Company
is likely to end soon. The various corrective measures taken by
management and your Board of Directors, gives me confidence that your
Company will be in a position to sail through the intense competition
that this industry is going through.
As you are aware, your Company places a lot of emphasis on HSE and is
accredited with OHSAS 18001-2007 & ISO 14001-2004.
I would like to inform you that at the ensuing Annual General Meeting
of the Company and in accordance with the Articles of Association of
the Company and the provisions of the Companies Act, 2013, Mr. Satpal
Singh, Managing Director & CEO of the Company retire by rotation, and
being eligible, seek re-appointment.
The Board of Directors in their Board Meeting held on February 04, 2015
appointed (Dr.) Mrs. Vasantha S. Bharucha as an Additional Director
(Independent) for 5 years subject to approval of shareholders.
Vice Admiral Harisimran Singh Malhi has resigned from the post of Non
Executive Director w.e.f. June 4, 2015; I express my sincere
appreciation for his valued inputs and matured advices during his
tenure as a Director in your Company.
I would like to re-iterate our strong commitment to good corporate
governance. We are continuously striving to improve the quality of our
disclosures. Members would have observed that the contents of our
Annual Reports over the past few years contain more information about
the Company and its working.
Our employees constitute our biggest asset and I am sure that their
continued employment, improved efficiency and prosperity will enable
your Company to face strongly the challenges ahead. The effort of your
Company is not only to comply with regulatory requirements but also
practice Corporate Governance principles based on integrity,
transparency and overall corporate accountability.
I am grateful to the Board of Directors for their support and guidance
and also to all customers, bankers, financial institutions, Government
and regulatory authorities, shareholders and most of all, to all the
employees for their valuable support and cooperation. I look forward to
your continued support, trust and participation in the growth of the
With warm regards,
Rear Admiral Kirpal Singh
August 25, 2015