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Dredging Corporation India Ltd.

BSE: 523618 | NSE: DREDGECORP |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE506A01018 | SECTOR: Ports

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Annual Report

For Year :
2022 2021 2018 2017 2016 2015 2014 2013 2012

Director’s Report

Your Directors have pleasure in presenting this 46th Annual Report together with the audited financial statements of the Company for the year ended 31st March'' 2022.

1. FINANCIAL RESULTS

(? in lakhs)

PARTICULARS

2021-22

2020-21

(I) INCOME

Operations

79,909

76,376

Others

245

316

TOTAL INCOME

80154

76,692

(II) EXPENDITURE

i.) Employees Benefits

9477

10098

ii) Depreciation

12020

11930

iii) Repairs and maintenance (Vessels)

654

5622

iv) Power, Fuel and Lubricants

32565

27950

v) Spares and Stores

3493

6940

vi) Insurance

648

719

vii) Other Expenses

21310

28484

viii) Finance costs

1193

1992

TOTAL EXPENDITURE

81360

93735

Profit before exceptional items and Tax

-1207

-17043

Exceptional Items

1669

-

Profit before Tax

463

-17043

2. ACQUISITION OF NEW DREDGER

We are happy to inform you that Ministry has accorded approval to the recommendations of the Expert Committee constituted for the purpose of procurement of 12000 m3 TSHD dredgers by DCI to be constructed at Cochin Shipyard Limited under the Atma Nirbhar Program - first in 2021, second in 2023 and the procurement of third dredger should be on the basis of analysis of performance of 2 dredgers. The third dredger capacity shall be determined based on gap viability analysis of the market in 2025 to achieve requirements of dredging at Indian Major Ports as envisaged in Maritime Vision 2030. The agreement between Dredging Corporation of India and Cochin Shipyard Limited was signed on 17/03/2022 and tripartite agreement between DCI-CSL-IHC was signed on 13/04/2022. The Cost of the dredger is 104.59 million EURO''s. The first and Second installment was paid on 02/11/2022 and 14/11/2022 respectively.

3. CAPACITY UTILISATION

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

Target

Actual

% Utilisation

No. of Days

3675

2646.92

72.03%

Quantity (Mln. Cu.M)

667.96

552.68

82.74%

The lower capacity utilization is mainly because of dry-docking and ageing of dredgers.

4. DCI FLEET

The Company has, 10 Trailer Suction Hopper Dredgers (TSHDs), 1 Cutter Suction Dredgers (CSDs), one Back Hoe Dredger and one Inland Cutter Suction Dredger apart from other ancillary crafts.

5. DREDGING OPERATIONS

Important Contracts executed during the Year 2021-22:

1. Maintenance Dredging in the Shipping Channel leading to Haldia Dock Complex in the Hoogly Estuary for the year 2021-22 of Syama Prasad Mookerjee Port Authority.

2. Maintenance dredging of Approach Channel, Entrance Channel, Turning Circle, Docks & Sand Trap of Paradip Port Authority for the year 2021-22.

3. Maintenance Dredging at Cochin Shipyard Limited for the year 2021-22.

4. Dredging for maintenance of Channels and Basins at Cochin Port Authority for the year 2021-22.

5. Maintenance Dredging at New Mangalore Port Authority for the Year 2020-21 & 2021-22.

6. Maintenance Dredging of Naval Channels (Southern Naval Command, Kochi) at Ernakulum for the year 2021-22.

7. Maintenance Dredging at Mormugao Port Authority for the year 2021-22.

New Contracts completed up during the year 2021-22:

1. Maintenance Dredging in the Shipping Channel leading to Haldia Dock Complex in the Hoogly Estuary for the year 2021-22 of Syama Prasad Mookerjee Port Authority.

2. Dredging for maintenance of Channels and Basins at Cochin Port Authority for the year 2021-22.

3. Maintenance Dredging at New Sand Trap (NST) and its approaches and other areas of VPA and to pump the dredged material to the shore by using extended rain bowing through Floating pipeline method for the year 2021-22.

4. Maintenance Dredging of Naval Channels (Southern Naval Command, Kochi) at Ernakulam for the years 2021 -22.

5. Chartering of BH-I to M/s. JP Offshore for Naval Dredging at ENC, Visakhapatnam for the year 2021-22.

6. Land reclamation of NRL COlT plot by pumping of dredged material from sand trap area of Paradip Port Authority for the year 2021-22.

6. SAFETY MANAGEMENT SYSTEM (ISM)

(a) All dredgers (except dumb vessel DCI Dredge XVI11) of DCI hold valid Safety Management Certificate (SMC).

(b) DCI Dredge VIII, DCI Dredge XI, DCI Dredge Aquarius and DCI Multicat-I hold valid Indian Coastal Vessel Safety Certificate.

(c) DCI holds a Document of Compliance (DOC) valid till 24.06.2027. The same is being endorsed every year after annual verification audit by DG Shipping.

SHIP SECURITY SYSTEM (ISPS)

(d) All dredgers (except dumb vessel DCI Dredge XVIII) of DCI hold valid International Ship Security Certificate (ISSC).

(e) DCI Dredge VIII, DCI Dredge XI, DCI Dredge Aquarius and DCI Multicat-I ensure compliance with regard to Ship Security measures as defined in Annex -11 of the Notification for Indian Coastal Vessels.

QUALITY MANAGEMENT SYSTEM (ISO 9001:2015)

(f) DCI is certified for Quality Management System (ISO 9001:2015) and the certificate is valid up to 24th February''2025.

ENVIRONMENT MANAGEMENT SYSTEM (ISO 14001:2015)

(g) DCI is certified for Environmental Management System (ISO 14001:2015) and the certificate is valid up to 12th March, 2025.

7. MEMBERS/ INVESTOR SERVICES

The shares of the Company are listed on Bombay Stock Exchange, Calcutta Stock Exchange and National Stock Exchanges. The shares of the Company are dematerialized with both the depositories, NSDL and CDSL. The tax-free bonds are listed with the Stock Exchange, Mumbai. M/s.KFin Technologies Limited, Hyderabad is 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.

8. THE REQUIRED PARTICULARS ETC., PURSUANT TO SECTION 134 (3) OF THE COMPANIES ACT 2013 ARE AS UNDER: -

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 hosted on the website of the company http://www.dredge-india.com/investors.html.

b) Number of meetings of the Board: - During the financial year 2021-22 the company has held Seven Board Meetings. Further details are provided in the Corporate Governance Report. The Company has duly constituted Audit Committee, Nomination and Remuneration Committee, stakeholders relationship committee and the details of the same including their constitution, No. of meetings etc., is included 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 judgements 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;

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) Details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to the Central Government: NIL

e) The independent directors have submitted the required declaration under sub-section (6) of Section 149 with regard to meeting the stated criteria for independence.

f) The Promoters have been continuing with the same remuneration norms as per the provisions in share purchase agreement. The Independent directors are paid sitting fees of ?20000/- for attending each meeting of the board or committee thereof and are not paid any other remuneration. The Part-time official Directors were not paid any remuneration by the Company. The remuneration to Managing Director is within the limits specified in Section 197/198 of the Companies Act and Rules made thereunder. The Company has constituted Nomination and Remuneration committee as per Section 178 consisting of three Independent Directors.

g) Explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made.

(A) THE INDEPENDENT AUDITORS IN THEIR REPORT FOR 2021 -22 HAVE STATED AS UNDER: -Qualified Opinion

We have audited the accompanying standalone Ind AS financial statements of Dredging Corporation of India Limited, Visakhapatnam (the Company) which comprise the Balance Sheet as at March 31,2022, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information. (Hereinafter referred to as the financial statements).

In our opinion and to the best of our information and according to the explanations given to us, except for the effect of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid financial statements give the information required by the Companies Act, 2013 (the Act'') in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2022 and its profit, changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

a. As described in Note No 29.13 to the financial statements, Company has not determined the retrospective impact of the change in Accounting Policies on the Opening balance of Other Equity and the Current and Previous reporting periods thereby not complying with the measurement and disclosure requirements under Ind AS 8, on Accounting Policies, Changes in Accounting Estimates and Errors. In absence of sufficient and appropriate evidence, we are unable to comment on the impact thereof on the amounts reported in the Financial Statements.

b. As described in Note No 6.1 to the financial statements, Company has not determined the impact of a pending dispute

before the NCLT and a related CBI Investigation involving M/s. Van Oard India Private Limited on the Current reporting period thereby not complying with the measurement and disclosure requirements under Ind AS 37, on Provisions, Contingent Liabilities and Contingent Assets. In absence of sufficient and appropriate evidence, we are unable to comment on the impact thereof on the amounts reported in the Financial Statements.

Emphasis of Matter

We draw attention to;

a. Note No 14.1 to the financial statements regarding amounts receivable from M/s Jawaharlal Nehru Port Authority on account of a disputed recovery made by them.

b. Note No 29.10 to the financial statements which states that Trade Receivables include a sum of ? 6584 lakhs due from M/s Sethusamudram Corporation Limited (SCL) towards works executed during 2005-06 to 2008-09 as has been settled by a committee chaired by Additional Secretary & Financial Advisor, Ministry of Shipping, Government of India (AS & FA Committee).

c. Note No 29.1A to the financial statements regarding Arbitral Award of ? 6047 Lakhs in favour of M/s Mercator Lines Limited (MLL) the awarded amount is shown as contingent Liability. We have relied upon the legal opinions obtained by the Company from Senior Counsels.

d. Note No 29.12 to the financial statements regarding the accounting treatment of Prior Period Items to the tune of ? 692.82 lakhs and the disclosure thereof in the Current and Previous reporting periods.

e. Note No 29.14 to the financial statements which states that Outstanding balances under Trade Payables, Other Payables, Trade Receivables and Advance to Suppliers are subject to reconciliation and confirmations.

Our opinion is not modified in respect of these matters.

Management''s Responsibilities for the Standalone Annual Financial Results

These standalone annual financial results have been prepared on the basis of standalone annual financial statements. The Company''s Board of Directors are responsible for the preparation and presentation of these standalone annual financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standards prescribed under Section 133 of the Act and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone annual financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone annual financial results, the Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the financial reporting process of the Company.

Auditor''s Responsibilities for the Audit of the Standalone Annual Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone annual financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone annual financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone annual financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion through a separate report on the complete set of standalone financial statements on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the standalone annual financial results made by the management.

• Conclude on the appropriateness of the management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone annual financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone annual financial results, including the disclosures, and whether the standalone annual financial results represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matter

Attention is drawn to the fact that the figures for the quarter ended March 31, 2022 and the corresponding quarter ended in the previous year as reported in the Statement are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the end of third quarter of the relevant financial year. Also, the figures up to the end of the third quarter had only been reviewed and not subjected to audit.

h. 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.

i. Particulars of contracts or arrangements with related parties referred to in Section 188 (1) :-In line with the provisions of the Companies Act, 2013 and the SEBI (LODR) Regulations, 2015, the Company has formulated a Policy on materiality of Related Party Transactions and also on dealing with Related Party Transactions. The same has been posted on the website of the Company. The related party transactions of DCI for the year 2021-22 are mainly with other State controlled enterprises. The necessary disclosures with regard to the transactions with the related parties -Promoter Group has been made at Note No. 29 - Additional information on Financial Statements, Sl.No. 18 with heading - Related Party Transactions in the financial statement for the year 2021-22 and the relevant disclosure in Form No. AOC-2 has also been Annexed to the Board Report. During the year under review, apart from what is disclosed, 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. There have been no loans/advances/investments or any other transactions with any of the entities in which Directors are interested as per the disclosures given by them coming within the purview and requiring disclosure under related party transaction under the stated Accounting Standard.

j. the state of the company''s affairs: - This has been explained elsewhere in this report.;

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

i) Tonnage Tax Reserve u/s115VTutilization of the IT Act - ?270Lakhs

ii) Transfer to General Reserve - NIL

iii) Transfer to Debenture Redemption Reserve - NIL

k. In view of the financial position of the company and loan repayment commitments, the Board of directors have not recommended any dividend for the year 2021-22.

l. 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

m. the conservation of energy, technology absorption, foreign exchange earnings and outgo:

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

For online fuel monitoring, the Company is in the process of procurement of flow meters during the year for Dredge XII, XIV and XVII.

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

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

o) 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.

p) 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 2021-22, the amount required to be spent under CSR is NIL. The particulars of the CSR activities in the prescribed format as required under the Companies Act are given in Annexure.

q) 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:-

As per the requirements of the SEBI (LoDR) Independent Directors evaluated the performance of the NonIndependent Directors, Chairperson, MD. The Board evaluation criteria was circulated to all the Directors and the same is received.

9. INSURANCE

The Company has taken appropriate insurance for its assets against foreseeable perils.

10. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS

There are no significant and material orders passed by the Regulators, courts or Tribunals which would impact the going concern status and the Company''s future operations.

11. DISCLOSURE AS PER SECTION 197 OF THE COMPANIES ACT AND THE REQUIREMENTS OF COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES 2014.

Pursuant to provisions of Section 197 of the Companies Act, 2013, read with the Rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the names and other particulars of employees along with the ratio of remuneration of each Director to the median employee''s remuneration and such other details forms part of Directors'' Report and is Annexed to this Report.

12. VENDOR DEVELOPMENT

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 procurement, a major portion is fuel, which cannot be procured from MSME Vendors and further that since most of dredgers of DCI have been built 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 Procurement Policy mandatory provision of 20% procurement from MSMEs.

13. R&D ACTIVITIES

DCI Dredge Aquarius was fitted with an indigenously 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 Original Equipment Manufacturer abroad. The newly installed PLC has been found to be cost effective and working satisfactorily.

14. CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT

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.

15. MAN POWER:

The total number of employees (both Shore and Floating) in the Corporation, as on 31st March, 2022 was as underShore (Executives 127 & Non-Executives 79) 206

Floating (Regular 101 & Contract 331) 432

Total 638

16. EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

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, 2022 was SCs 37 and STs 14.

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (Shore based employees) in Group ‘C'' and ‘D'' categories in the Corporation as

on 31st March, 2022 was Nil as against the percentage of 14.5% and 24.5% respectively as prescribed by the Government.

C. Employment of Physically Handicapped

The number of physically handicapped employees in the Corporation as on 31st March, 2022 is 4 (Four), the Group-wise break-up A, B, C & D for shore side is furnished below: -

Group

Total Strength

No. of persons with disabilities actually employed

Percentage with reference to identified posts

A

127

03

2.36

B

29

-

-

C

44

01

2.27

D

06

-

-

Total

206

04

1.94

D. Employment of Women

The number of women employees on Rolls as on 31st March, 2022 is 33 as against 35 as on 31st March, 2021. Out of them number of executives is 14 and Non-Executives is 19.

17 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.

18. EXISTING BENEFITS AND WELFARE MEASURES FOR THE WOMEN EMPLOYEES:

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. DCI is a life member of the Forum for Women in Public Sector and one woman 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.

vi. A Recreation Room has been provided exclusively for the women employees in the Corporation.

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

19. OTHER BENEFITS:

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.

20. WAGE SETTLEMENTSA. FLOATING ESTABLISHMENT:

i. New wage agreements in respect of Floating officers is implemented w.e.f. 01.04.2019.

ii. New wage agreements in respect of Floating Petty officers is implemented w.e.f. 01.04.2019.

iii. New wage agreements in respect of Floating crew is implemented w.e.f. 01.04.2019.

B. SHORE ESTABLISHMENT:

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.

21. INDUSTRIAL RELATIONS:

The industrial relations in the Corporation continued to be cordial throughout the year 2021-22.

22. HUMAN RESOURCES DEVELOPMENT

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

i) During the year 2021-22, 5 Management Development Programmes were conducted.

ii) During the year 2021-22, 5 DCCP Apprentice Trainees were inducted for training for a period of 12 months.

23. IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005

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 coordinated. Required periodical reports on the implementation of RTI/ Status of RTI replies are being furnished to the Ministry, CIC from time to time.

24. 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.

25. WELFARE MEASURES PROVIDED FOR THE EMPLOYEES AND THEIR FAMILY MEMBERS

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, Subsidized 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: Staff Welfare Schemes viz., Car Advance, Two wheeler Advance, Marriage Advance (Children & Self), Children Higher Education Advance, Festival Advance etc., were considered up to 24.09.2017 as per the laid down procedure. The same has been stopped w.e.f. 25.09.2017 due to administrative reasons.

HBA: The scheme was approved. However, the same has not been implemented due to administrative reasons.

Payment of ex-gratia to legal heirs/ members of the family of deceased employees: The same is being complied.

26. INFORMATION & FACILITATION COUNTER

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 setup at DCI Head Office, Visakhapatnam and the same is publicized in the web-site also.

CITIZEN’S CHARTER

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 Organisation from the citizen/client for fulfilling the commitment of the Organisation, 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 organisation. 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.

27. ACTIVITIES AND ACHIEVEMENTS OF VIGILANCE DEPARTMENT

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 2021 was observed at the Corporate Headquarters and various Project Offices of Dredging Corporation of India Ltd. from 26th Oct''2021 to 1st Nov''2021, under the auspices of Central Vigilance Commission (CVC) to spread awareness agaist corruption. CVC''s theme for the year 2021 was “Independent India @ self-reliance with integrity” with emphasis on spreading awareness in fight against corruption to all sections of Society. In line with the letter and spirit of the theme and guidelines of CVC, several activities were organized keeping in view the COVID-19 guidelines. This time we tried to reach people virtually, with the help of technology.

Preventive Vigilance:

i) As a measure of preventive vigilance, 8 Periodic and 4 Surprise type inspections have been taken up during the year. The lapses/ irregularities notices in this regard have been communicated for taking remedial/ corrective actions.

ii) Appointment of IEMs in DCI: Shri P.K.Dash, IAS (Retd.) and Shri Kishore Kumar Sansi, Ex-MD & CEO, Vijaya Bank, have been appointed as Independent External Monitor (IEM). Offer of appointment as IEM were issued to them vide letter dated 28.02.2022.

Systemic Improvements Undertaken:

i) HR dept has been advised to initiate immediate action to amend the Schedule of Powers under Certified Standing Orders (CSO) and conduct Discipline and Appeal (CDA) rules of the Corporation vis-a-vis present set up, in order to eliminate anomaly and incongruity in schedule of powers.

ii) Electronic Measurement Book (e-MB) system has been proposed to be introduced in order to reduce/eliminate the bill payments delay.

iii) Impracticable contract conditions should be modified to take care of unforeseen circumstances.

iv) To appoint suitable personnel to maintain dispatch register properly and also to monitor regularly at regular interval.

28. STATUTORY AUDITORS

M/s.Rao & Kumar Co., Chartered Accountants, Visakhapatnam were appointed by the Comptroller and Auditor General of India as Statutory Auditors for auditing the accounts of the Company for the financial year 2021-22. 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. In the previous AGM the Audit Committee was authorized to fix the fees payable to the Statutory Auditors. It was recommended authorize the Audit Committee for fixation of remuneration for statutory auditors for 2022-23.

29. INDEPENDENT AUDITORS’ REPORT

The Independent Auditors'' Report on the Accounts for 2021-22 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.

30. SECRETARIAL AUDIT 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.

31. C&AG COMMENTS

The Supplementary Audit for the Accounts of the Company for the year ended 31st March''2022 by Comptroller and Auditor General of India is complete and is placed along with the accounts along with the replies of the management on the Comments of Comptroller and Auditor General of India.

32. BUSINESS RESPONSIBILITY REPORT

The Business Responsibility Report for the year ended 31st March''2022 as required under the SEBI regulations is annexed to the Directors Report.

33. VOLUNTARY DELISTING FROM CALCUTTA STOCK EXCHANGE

As per the approval of the Board, the Company has applied for Voluntary Delisting of Shares from Calcutta Stock Exchange in June, 2020. As per the request of the exchange, clarifications have been provided. Confirmation of the delisting is awaited.

34. DIRECTORS & KEY MANAGERIAL PERSONNEL

The Directors recommend for approval of the Members the above appointments/re-appointment of the Directors as proposed in the Notice to the AGM.

35. ACKNOWLEDGEMENTS

The Directors thank Hon''ble Minister, Hon''ble Minister of State of Ministry of Ports, Shipping and Waterways, its Officers and staff 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

V

Place : Visakhapatnam K. Rama Mohana Rao,IAS

Date : 24/11/2022 Chairman

Director’s Report