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Dredging Corporation India Ltd.


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Series: EQ | ISIN: INE506A01018 | SECTOR: Miscellaneous

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Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Director’s Report

The Board commends the resolution for approval of the members as ordinary resolution.

Your Directors have pleasure in presenting this 42nd Annual Report together with the audited accounts of the Company for the year ended 31st March, 2018.


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


Keeping in view the financial performance of the Company and other relevant considerations, your Directors have recommended payment of dividend @ 20% on the paid up capital of the company i.e Rs,2 per equity share amounting to Rs,560 lakh for the year 2017-18.


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



% Utilisation

No. of Days




Quantity (Mln. Cu.M)





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 other ancillary crafts . Two vessels DCI Dredge VII and DCI Dredge IX have been decommissioned and sold as scrap during the year.


The Company has secured on tender basis the dredging contract at Haldia/ Kolkata Port for five years from 1/1/2017. The Company has been performing the dredging at the port for the past thirty years. The Company also caters to the maintenance dredging requirements of other major ports/ India Navy etc. The Company is taking up capital dredging assignments depending on the availability of the vessels and other logistic requirements.

During the year under review, maintenance dredging contracts were executed for Kolkata Port, Cochin Port Trust, Cochin Shipyard, RGPPL-Dabhol, Gangavaram, Mumbai Port Trust and New Sand Trap and its approaches of Visakhapatnam Port Trust. Capital Dredging Contracts were executed at Paradip Port, Bangladesh, Andaman and Nicobar island, Puducherry, Gogha and Dahej.

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


The Company has signed Memorandum of Understanding (MOU) with Government of India for the 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 hold valid 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 verification audit by DG Shipping.


All dredgers (except Tug-VII and dumb vessels- DR-XVIII and ID Ganga) of DCI holds valid International Ship Security Certificate (ISSC). QUALITY MANAGEMENT SYSTEM (ISO 9001:2008)

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


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


Implemented ISO 14001: 2015 (Environment Management System.)

Installed Sewage Treatment Plants onboard vessels.

Compliance to MARPOL 73/78 Regulations i.e (lnternational Oil Pollution Prevention,lOPP)

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


The shares of the Company are listed on BSE, Calcutta 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 the Company. M/s CATALYST TRUSTEESHIP LIMITED (formerly GDA Trusteeship Ltd.,) Pune is the Trustee 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 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 has held 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 the Annual Accounts, the applicable accounting standards had been followed along with a proper explanation relating to material departures;

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

(iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the 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 the company and that such internal financial controls are adequate and were operating effectively.

(vi) the Directors had devised proper systems to ensure compliance with the provisions of 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 norms pertaining to qualifications etc., prescribed by Government of India. The whole time directors 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 meeting of the board or committee thereof and are not paid any other remuneration. The Part-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 public enterprises from time to time. The Company has constituted Nomination and Remuneration committee as per Section 178 consisting of two Independent Directors and One part-time official Director.

e ) Explanations or comments by the Board on every qualifications, reservation 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 Rs,11,433.18 lakhs receivable from M/s Sethusamudram Corporation Ltd.(SCL) which is pending for more than 4 years. Out of the above, Company has provided for doubtful debts to the extent of Rs,3019.27 lakhs. The company is of the view that this will be reimbursed by GOI (at whose behest the contract with SCL was entered) to DCI to compensate the actual expenditure incurred on this project. In view of this, a provision for doubtful debts is not made in respect of receivables in this regard amounting to Rs,8413.91 lakhs. b ) The balances of sundry debtors, creditors, loans and advances, other receivables and other payables being subject to confirmation and reconciliation resulting in the balances as per books of account not verified by us.


Management reply to emphasis of matter:

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

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



1. Compliance of Section 149(4) of the Companies Act, 2013, Regulation 17 (1) of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015 and Clause 3.1.4 of the DPE Guidelines on Corporate Governance for Central Public Sector Enterprises w.r.t. composition of the Board of Directors of the Company.

2. Compliance of Regulation 17 (10) & 25 (4) of Securities and Exchange Board of India (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 Association of the Company, the Directors are to be appointed by the President of India. The issue of appointment of requisite number of independent directors, has been taken up with the administrative Ministry - Ministry of Shipping and the same is pending with them. The performance evaluation of the Whole-time Directors and Part time official Directors is done by the Government of India. The independent Directors have carried out the performance evaluation of the other directors during the independent directors meeting held 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. The Company has not given any loans or guarantees.

g) particulars of contracts or arrangements with related parties referred to in Section 188 (1) :- The Company has no contracts or arrangements with related parties referred to in Section 188 (1). In terms of Accounting Standard 18 (Revised-2000), no disclosure is required in the financial statements of State controlled enterprise (An enterprise which is under the control of the Central Government and/or State Government) as regards related party relationships with other State controlled enterprises and transactions with such enterprises. The related party transactions of DCI for the year 2017-18 are mainly with other State controlled enterprises. During the year under review, the Company has not entered into financial or other transactions of material nature with its Promoters, the Directors and senior management that may have potential conflict with the interests of the Company at large and/ or which are 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 :- This has been explained elsewhere in this report.;

i) the amounts, if any, which it proposes to carry to any reserves: The following amounts have been transferred to different reserves during the year:-

a) Tonnage Tax Reserve u/s 115VT utilization of the IT Act - Rs,525 Lakhs

b) Transfer to General Reserve - NIL

c) Transfer to Debenture Redemption Reserve - NIL

j) Dividend @20% i.e Rs,2 per equity share is recommended for approval of shareholders at this AGM. The same will be paid within 30 days after the date of declaration. k) material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the financial year of the company to which the financial statements relate and the date of the report: Nil l) the conservation of energy, technology absorption, foreign exchange earnings and outgo:

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

All the dredgers in DCI fleet are installed with sophisticated and state-of-the art instrumentation like Differential Global Positioning System (DGPS) and Draft Volume Load Monitoring (DVLM) system to facilitate efficient dredging with potential energy saving.

- While procuring new dredgers, fuel efficient design with advanced technology is selected.

- Continuous efforts are being made to optimise the fuel consumption on board dredgers as cost of fuel constitutes approximately 35-45% of operational cost.

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

Foreign Exchange earnings and outgo:

(Rs, In Lakhs)

i) Foreign Exchange Earnings :




ii) Foreign Exchange outgo:

a) Import of components and spares (CIF value)


b) Payment of interest on foreign currency loan


c) Repayment of installment of foreign currency loan


d) Foreign travel




m) a statement indicating development and implementation of a risk management policy for the company including identification therein of elements of risk, if any, which in the opinion 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 of risks, optimal risk mitigation responses and efficient management of internal control and assurance activities. The Risk Management Committee has been constituted. The threats, risk and concerns are discussed in the Management Discussion and Analysis Report.

n) the details about the policy developed and implemented by the company on corporate social responsibility initiatives taken during the year:

The Company has in place a Corporate Social Responsibility Committee and a Corporate Social Responsibility and sustainability Policy. During the year 2017-18, the amount required to be spent under CSR is Rs, 107.03 lakh. Against this, the Company spent Rs,109.42 Lakhs. The particulars of the CSR activities in the prescribed format as required under the Companies Act are given in Annexure -II.

o) a statement indicating the manner in which formal annual evaluation has been made by 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. The administrative Ministry - Ministry of Shipping reviews the performance of the Company on regular basis. The performance reports of the whole time directors are reviewed by the Ministry on Annual basis. The independent Directors have carried out the performance evaluation of the other directors during the independent directors meeting held on 15/3/2018.


Keeping in view the financial performance of the Company and other relevant considerations, your Directors have recommended payment of dividend @ 20% on the paid up capital of the company i.e Rs,2 per equity share amounting to Rs, 5.60 Cr. which including dividend tax comes to Rs, 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, 2015 issued by the Ministry of Corporate Affairs, Government Companies are exempted from complying with provisions of Section 197 of the Companies Act, 2013. Therefore, such particulars have not been included as part of Directors'' Report.


This is a continuous process and DCI procures spares and stores on a regular basis from suppliers spread all over the world. DCI is updating the supplier-base continually. DCI has adopted e-procurement process, as per Govt. of India guidelines, emphasis was given to facilitate and enable the vendors by way of training support and hand holding support to participate in the e-procurement processes of the company. DCI has organized a State Level Vendor Development programme in association with local Micro, Small and & Medium Enterprises (MSME) Office(Visakhapatnam Branch) and has been continuously participating and interacting with the prospective vendors in most of the vendor development program cum Buyers- 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 of spares for indigenization. Tenders are published in DCI official website and Central Public Procurement Portal for wider publicity so that MSMEs can participate. In view that out of the total annual procurment, a major portion is fuel, which cannot be procured from MSME Vendors and further that since most of dredgers of DCI have been bult at Netherlands and therefore most of the spare need to be imported from OEMs abroad, the Company has represented for relaxation for implementation of the Public Procrurement Policy mandatory provision of 20% procurement from MSMEs.


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


Pursuant to the DPE Guidelines and SEBI (LoDR) Regulations, 2015 Management Discussion and Analysis Report, Corporate Governance Report and Certificate from the Company Secretary in practice regarding compliance of conditions of Corporate Governance are attached, forming part of this Report.


The total number of employees (both Shore and Floating) in the Corporation, as on 31st March, 2018 was as under:-



Floating - Regular -143, Contract- 369





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

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfill its obligation in providing employment opportunities to SC/ST candidates, in accordance with the Government Policy. The overall representation of SC/STs in the Corporation (both Shore and Floating Establishments, but excluding MPWs) as on 31st March, 2018 was sCs - 70, i.e., 16.43% as against prescribed percentage of 16.66% and STs 23 i.e., 5.40% as against the prescribed percentage of 7.5%.

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (both Shore and Floating) (regular employees) in group C and D categories in the Corporation was Nil as against the percentage of 14.5% and 24.5% respectively as prescribed by the Government. However, DCI has been recruiting Ex.Servicemen on its dredgers on contract basis.

C. Employment of Physically Handicapped

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


Total Strength

No. of persons with

Percentage with reference to

disabilities actually Employed

identified to identified posts





















There are no Physically handicapped persons employed on the floating side as it is not permitted.

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

D. Employment of women

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

Compliance with Government’s Policy on Women:

Basing on the Supreme Court''s judgment and keeping in view the Government instructions on sexual harassment of women at work places, a complaints Committee headed by a woman officer was constituted to inquire into the complaints of sexual harassment at work places. A complaints register is also being maintained.

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


i) The women employees of the Corporation, with less than two surviving children are entitled for 26 weeks of Maternity Leave.

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

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

iv) As per Apex Court''s judgment and basing on the Government instructions, a Complaints Committee headed by a Woman Officer was constituted to inquire into the complaints of Sexual Harassment at work places. A Complaints Register is also being maintained.

v) Working uniforms are provided to Group''D'' women employees, as per the scales prescribed in the Rules.

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

vii) The women employees of DCI are sponsored to various in-house and also external training programmes. 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 two children, during confinement of his wife, as per Leave Rules of the Corporation.



i) The INSA-MUI (FG/HT) Agreement in respect of Floating 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 2015-19 is revised and implemented w.e.f. 01.04.2015.

iii) The Wage Agreement of Crew/MPWs for the period from 2015-19 is revised and implemented w.e.f. 01.04.2015.


i) Pay revision of Executive Employees is implemented w.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 year 2017-18. The Unions representing the Non-Executives and Crew & Petty Officer of Dredging Corporation of India Limited were on one day strike on 11/4/17 and a three day strike from 20/12/17 to 22/12/17 in protest against the proposed strategic sale by GOI of its holding in the Company in which some of the executive employees also supported by taking leave. Further, the employees also participated in relay hunger strike. However there was no disruption in the operations of the Company.


The Corporation continued various welfare schemes viz., Family Pension Scheme, Group Gratuity Assurance Scheme, Personal Accident Insurance Coverage, Group Savings Linked Insurance Scheme, Contributory Provident Fund, Maternity Benefit Scheme, Subsidised Canteen Facility, Transport Subsidy, Medical Attendance, Leave Travel Concession, Merit Scholarships for the children of SC/ST employees, Pension Scheme and DCI Retired Employees Medical Trust/Scheme etc. Other welfare measures such as Special Casual Leave for maternity/ paternity are extended to the employees. Staff Welfare Schemes viz., Car Advance, Two wheeler Advance, Marriage Advance (Children & Self), Children Higher Education Advance, Festival Advance etc.,are provided to the employees.


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

i) During the year 2017-18, 183 employees were trained in various training programs.

ii) During the year 2017-18, 15 DCCP Apprentice Trainees and 10 Industrial Trainees were inducted for training for a period of 12 months.


As per the Directives of the Government of India, the Corporation implemented The Right to Information Act, 2005 w.e.f. 12.10.2005, and made all required infrastructural arrangements such as appointment of Public Information Officers, Asst. Public Information Officers and Appellate Authority; set-up of procedure and submission of periodical reports on the progress of implementation of the Act. A register is maintained for monitoring the requests from public seeking information and the replies by the concerned are also being co-ordinate. Required periodical reports on the implementation of RTI/ Status of RTI replies are being furnished to the Ministry, CIC from time to time. ACTIVITIES OF PUBLIC GRIEVANCES AND COMPLAINTS CELL :

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the Grievances/Complaints received from the Public. The Company Secretary is the Director of Public Grievances. As per the Ministry''s guidelines, a status report is being submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is forwarded to the Ministry. In line with the Ministry''s direction, a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the Computer Network in the Corporation, which works in hand-shake mode between the Ministry and the Corporation. Complaints received during the year were suitably replied to.


In order to ensure transparency in the functioning of the Corporation and also for easy and speedy access for any information to the public, an INFORMATION & FACILITATION COUNTER (IFC) was set up at DCI Head Office, Visakhapatnam and the same is publicized in the web-site also.


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

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

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

Computerization of forms / correspondence and reports in Hindi, was implemented in various departments. Several formats, PF Statements, letter-heads, visiting cards, banners and other items of stationery are printed / made bilingual and the same are made available on the computers. Web-site information was also updated in Hindi. Unicode was installed in various functional Departments. Issue of Office Orders / Circulars, Reports submitted to Government and Parliamentary Committees and Annual Report of the Corporation were ensured in bilingual.


As per the directives of the Government of India, to focus on the commitment of DCI towards its citizens / clients in respect of standard of services, information, choice and consultation, non-discrimination and accessibility, grievance redress, courtesy and value for money, including expectations of the Organization from the citizen/client for fulfilling the commitment of the Organization, a Citizens'' Charter approved by the Competent Authority was posted on the Corporate website.

As part of requirement thereof, a Task Force has been constituted with representatives from the Management and Staff Unions, as well as from the Visakhapatnam Port Trust, a local clientele organization. The Task force attends to the duties as prescribed 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 and implementation of the Citizens 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 type inspections have been taken up during the year. The lapses/ irregularities notices in this regard have been communicated for taking remedial/ corrective actions. The number of vigilance cases pending at the beginning 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 and improvements in systems and procedures and facilitating faster and effective decision making in transparent manner.

The Vigilance Awareness Week 2017 was observed at the Corporate Headquarters and various Project Offices of Dredging Corporation of India Ltd. from 30th October 2017 to 4th November 2017. CVC''s theme for Vigilance Awareness Week 2017 was “My vision- Corruption free India” with emphasis on spreading awareness in fight against corruption to all sections of Society. Painting Competition was organized for the school students in various urban corporate/private schools, urban Govt. /Aided schools in Visakhapatnam. In addition to this, DCI conducted inter-collegiate Essay writing and Elocution competitions in English and Telugu at its Head Office. To create awareness and sensitize public a mass Integrity Pledge was conducted for the citizens including school and college students on 10th October 2017 at Araku, a tribal village, wherein 2000 citizens took the integrity pledge enthusiastically. Further to spread awareness against corruption amongst the general public, Dredging Corporation of India and Visakhapatnam Port Trust organized Vigilance Awareness Walk. A flash mob depicting the evils of corruption and a signature campaign was initiated at the venue in order to take the integrity pledge by general public.

Systems improvement measures were suggested by the Vigilance department for implementation.


M/s Tukaram & Co., Chartered Accountants, Hyderabad were appointed by the Comptroller and Auditor General of India as Statutory Auditors for auditing the accounts of the Company for the financial year 2017-18. Pursuant to Section 142 (1) of the Companies Act, 2013 the remuneration of the Auditors has to be approved by the Members at the AGM. The Board recommends the remuneration of Rs,4.50 lakhs plus service tax as applicable for the year 2017-18 as statutory auditors for approval of the Members at this AGM.


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


The report of the Secretarial Auditor - Mr. Sachin Agarwal of M/s. Agarwal & Associates pursuant to Section 204 of the Companies Act, 2013 and rules made thereunder is placed after the Directors report. The comments/replies of the management on the observations of the Secretarial Auditor has been given elsewhere in this report.


The Comptroller and Auditor General of India has issued “NIL”comments on the Accounts of the Company for the year ended 31st March 2018 and the same are placed next the Statutory Auditor''s Report STRATEGIC SALE

The Government of India (“GOI”) has granted an ‘in-principle'' approval for the Strategic disinvestment of DCIL by way of the transfer of management control and sale of 73.47% equity share capital of DCIL held by GOI. In this connection, the GOI acting through Department of Investment & Public Asset Management (DIPAM) has appointed RBSA as its Transaction Advisor (“TA”) and Link Legal as its legal advisor (“LA”) to advise them on the Proposed Transaction and manage the disinvestment process. The Asset Valuers have also been appointed by the Ministry of Shipping.


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

Shri Pradeep Kumar, IAS was appointed as part-time official Director of the Company and Shri Sanjeev Ranjan, IAS ceased to be director of the Company w.e.f. 29/05/2017 as per Ministry of Shipping vide Letter No. sS-11012/6/2014-SY.II-Part (1) dt 29/05/2017.

Shri Pravir Krishn, IAS and Shri Pradeep Kumar, IAS ceased to be on the Board of Directors of the Company w.e.f. 25/07/2017 and 27/07/2017 respectively as per Ministry of Shipping vide mail dated 31/07/2017.

Ms.Leena Nandan, IAS was appointed as part-time official Director of the Company in place of Shri Pradeep Kumar, IAS as per Ministry of Shipping vide Letter No. SS-11012/6/2014-SY.II-Part (1) dt 03/0820/17.

Shri Satinder Pal Singh, IPS was appointed as Part-time Official Director on the Board of the Company in place Shri Pravir Krishn, IAS w.e.f 28/8/2017 as per Ministry of Shipping Letter No. SS-11012/6/2014-SY.II - Part (1) dt. 28/8/2017.

Shri S. Charles, Director (Finance) ceased to be director of the Company on 14/03/2018 as per Ministry of Shipping letter No. SS-28012/2/ 2013-DCI dt. 28/2/18. Shri Rajesh Tripathi, CMD has been assigned the additional charge of Director (Finance) w.e.f 15/03/2018.

Shri Shambhu Singh, IAS was appointed as Part-time Official Director w.e.f 3/5/18 in place Ms. Leena Nandan, IAS as per Ministry of Shipping vide Letter No. SS-11012/6/2014-SY.II-Part (1) dt 03/05/2018

As per the provisions of Section 152 of the Companies Act, it is proposed to appoint Shri Satinder Pal singh, IPS and Shri Shambhu Singh, IAS as directors on the Board of the Company at the AGM.

It is also proposed to retire and re-appoint Shri Rajesh Tripathi in this meeting pursuant to Section 152 of the Companies Act.

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 of Ministry of Shipping for the valuable help, assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and co-operation extended by them. The Board is grateful to the Comptroller & Auditor General of India, the Member, Audit Board and the Statutory Auditors for their co-operation. The Board also thanks the Bankers of the Company for their valuable services. The Board expresses its gratitude to the valued customers for their continued patronage.

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

For and on behalf of the Board of Directors

Place : Visakhapatnam RAJESH TRIPATHI


Director’s Report