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Company Information

Home » Market » Company Information

Dredging Corporation Of India Ltd.

Feb 22
688.35 +3.85 (+ 0.56 %)
 
VOLUME : 30914
Prev. Close 684.50
Open Price 688.00
TODAY'S LOW / HIGH
684.90
 
 
 
702.40
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
440.25
 
 
 
920.00
Feb 22
689.00 +2.05 (+ 0.30 %)
 
VOLUME : 254820
Prev. Close 686.95
Open Price 685.00
TODAY'S LOW / HIGH
684.00
 
 
 
701.95
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
440.00
 
 
 
922.00
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Market Cap. ( ₹ ) 1929.20 Cr. P/BV 1.27 Book Value ( ₹ ) 543.08
52 Week High/Low ( ₹ ) 922/440 FV/ML 10/1 P/E(X) 260.49
Bookclosure 31/08/2017 EPS ( ₹ ) 2.65 Div Yield (%) 0.00
DIRECTOR'S REPORT
You can view full text of the latest Director's Report for the company.
Year End :2017-03 

The Directors have pleasure in presenting this 41st Annual Report together with the audited accounts of the Company for the year ended 31st March, 2017.

FINANCIAL RESULTS

The financial results of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended). The Company adopted Ind As from 1st April, 2016, and accordingly, these financial results (including for all the periods presented in accordance with Ind AS 101 - First-time Adoption of Indian Accounting Standards) have been prepared in accordance with the recognition and measurement principles of Ind AS, prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued there under and the other accounting principles generally accepted in India. Pursuant to the adoption of the Ind AS, the Accounting Policies have been revised as on transition date and the effect of the same has been reflected in the results. The figures for the previous year have been recast as per the new Ind As adopted by the company.

The Profit after tax of the Company is Rs, 712.27 lakh for the year as compared to Rs,4350.18 lakh for the previous year.

The Company’s earnings per share is Rs,2.54 for 2016-17 as compared to Rs,15.54 for 2015-16.

The operational income of the Company is Rs,58587.17 lakh as compared to Rs,66585.89 lakh for the previous year. The other income is Rs,1381.78 lakh as compared to Rs,1532.21 lakh for the previous year. The total income for the year is Rs,59968.95 lakh as compared to Rs,68118.10 lakh for the previous year.

The fall in income for this year is mainly due to the lower capacity utilization which was due to the reduction in scope at the Haldia project and stopping of the Goa project which was not adequately compensated by other projects.

CAPACITY UTILISATION

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

Target

Actual

% Utilisation

No.of Days

3425

2273

66.36

Quantity (Mln. Cu.M)

719

519

72.18

CAPACITY ADDITIONS

The inland cutter suction dredger named as DCI GANGA has been inducted into the fleet on 6th December, 2016. The vessel has been put into operation at the dredging project being carried out at Puducherry. This is the first of Inland fleet being inducted into the fleet in recent times.

DCI FLEET

The Company has, 12 Trailer Suction Hopper Dredgers (TSHDs), 4 Cutter Suction Dredgers (CSDs), one Back Hoe Dredger and one Inland Cutter Suction Dredger apart from other ancillary crafts.

DREDGING OPERATIONS

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 and NST and its approaches of VPT. Capital Dredging Contracts were executed at Mormugao Port, Chennai Port, 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.

MEMORANDUM OF UNDERSTANDING

The Company has signed Memorandum of Understanding (MOU) with Government of India for the year 2016-17. The Company is expecting a rating of “Good” for 2016-17.

OFFER FOR SALE TO EMPLOYEES BY GOVERNMENT OF INDIA.

Government of India offered 0.25% of the paid up share capital i.e 70000 equity shares to the eligible employees (employees on rolls as on 21/8/15) @ Rs,.362.90 per equity share (which is 5% discount on the rate of Rs,382 per equity shares offered for sale to the public through stock exchange mechanism in August 2015. The Offer was open from 30th October 2016 till 15th November 2016. The total number of eligible employees who have applied and allotted (on 21/11/16) were 126 is 25687 shares. The amount collected was Rs,93.22 lakhs which was transferred to GOI. After the said offer to the employees, the shareholding of GOI in DCI is now 73.47% (20572013 shares) as against the earlier holding of 73.56% (20597700 shares).

SAFETY MANAGEMENT SYSTEM (ISM)

(a) All dredgers (except dumb vessels Dr - VII, Dr. XVIII, ID Ganga and Tug- VII) of DCI hold valid Safety Management Certificates (SMC).

(b) DCI holds a Document of compliance (DOC) valid till 24-06-2017. The same is being endorsed every year after annual verification audit by DG Shipping. The Renewal of DOC audit was held on 25/04/2017 at HO Visakhapatnam.

SHIP SECURITY SYSTEM (ISPS)

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

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

ENVIRONMENT MANAGEMENT SYSTEM (ISO 14001:2004)

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

MEMBERS/ INVESTOR SERVICES

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.

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 placed as Annexure — 1.

b) Number of meetings of the Board :- During the financial year 2016-17 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 :-

(A) THE INDEPENDENT AUDITORS IN THEIR REPORT FOR 2016-17 HAVE STATED AS UNDER:-

EMPHASIS OF MATTERS:

QUOTE

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) Componentization: (Refer note No. 3 of the financial statements)

As per note 4 of Schedule II to the Companies Act, 2013 -’’Useful life specified in Part C of the Schedule is for whole of the asset. Where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part shall be determined separately.”

The above requirement is commonly known as ‘component accounting’. Companies are required to identify and depreciate significant components with different useful lives separately.

However management is of the view that no component is having more than 10% value of total cost of the dredger hence component accounting is not applicable.

b) 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.

c) 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.

UNQUOTE

Management reply to emphasis of matter:

The above emphasis of matters at Sl. (a), and (b) include the views of the management on the same. With regard balance of sundry debtors etc., at Sl.No. (c) 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.

(B) OBSERVATIONS/QUALIFICATIONS MADE BY THE SECRETARIAL AUDITOR:

QUOTE

“.... we certify that the Company has complied with the conditions of Corporate Governance as stipulated in Regulations 17 to 27, 46 (2)

(b) to (i) and Para C, D and E of Schedule V of Chapter IV of SEBI (LODR) Regulations, 2015 and DPE Guidelines on Corporate Governance except:

Compliance of Regulation 17 (1) of Securities 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.’’

UNQUOTE

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.

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 2016-17 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”.

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

h) 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 uitilisation of the IT Act. - ' 72 Lakhs

b) Transfer to Debenture Redemption Reserve - ' 600 Lakhs

i) In view of the Commitments for servicing of the loans, no dividend has been recommended for the year 2016-17.

j) 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 k) 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 yea r.

Foreign Exchange earnings and outgo:

(' In Lakhs)

i. Foreign Exchange Earnings :

0.00

ii) Foreign Exchange outgo:

a) Import of components and spares (CIF value)

5386.13

b) Payment of interest on foreign currency loan

1324.68

c) Repayment of installment of foreign currency loan

12516.15

d) Foreign travel

7.47

Total

19216.43

l) 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. m) 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 2016-17, the amount spent under CSR is '177.62 Lakhs. The particulars of the CSR activities in the prescribed format as required under the Companies Act are given in Annexure —II. n) 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.

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

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.

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.

R & D ACTIVITIES

Action is on hand to float the tender for design, manufacture, supply, installation, testing & commissioning of the fuel monitoring system to our vessels.

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.

MAN POWER:

The total number of employees (both Shore and Floating) in the Corporation, as on 31st March, 2017 was 503, as against 523 during the previous year excluding MPWs, Contract Officers and Crew.

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, 2017 was sCs - 83, i.e., 32.13% as against prescribed percentage of 16.66% and STs 26 i.e., 9.39% as against the prescribed percentage of 7.5%.

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (both Shore and Floating) in group C and D categories in the Corporation was 1.17% and Nil as against the percentage of 10% and 20% respectively as prescribed by the Government.

C. Employment of Physically Handicapped

The number of physically handicapped employees in the Corporation as on 31st March, 2017 is 9 (Nine), the group-wise break-up A, B, C & D is as furnished hereunder:-

Group

Total Strength

No. of persons with disabilities

Percentage with reference to

actually Employed

identified posts

A

189

05

2.65

B

44

01

2.27

C

78

02

2.56

D

14

1

7.14

Total

325

09

2.77

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, 2017 is 49 as against 52 as on 31st March, 2016. Out of them number of executives is 18 and Non-Executives is 31.

Compliance with Government’s Policy on Women:

Basing on the Supreme Court’s judgement 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.

EXISTING BENEFITS AND WELFARE MEASURES FOR THE WOMEN EMPLOYEES :

i) The women employees in the Corporation are entitled to 180 days 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 sterilisation.

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

iv) Basing on Apex Court’s judgement and keeping in view the Government instructions on Sexual harassment of Women at work places, a Compliants Committee headed by a Woman Officer was constituted to inquire into the complaints of Sexual Harassment at work places. A Compliants Register is also being maintained.

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

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

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

viii) 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 2016-17.

ix) Women’s Day was celebrated on 08.03.2017 in DCI.

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.

To observe small family norms, the following benefits are also given :

- Cash Award of '120/-; and

- One special increment/allowance in the form of personal pay throughout the service.

WAGE SETTLEMENTS

A. FLOATING ESTABLISHMENT :

i) The INSA-MUI (FG/HT) Agreement in respect of Floating Officers, is due from 1/4/15.

ii) The NMB Agreement, relating to HT Petty Officers is implemented for the period 2015-19.

iii) The Wage Agreement of Crew/MPWs is implemented for the period 2015-19.

B. SHORE ESTABLISHMENT:

The Revised Pay Scales for both Executives and non executives is due from 01.01.2017.

INDUSTRIAL RELATIONS:

The industrial relations in the Corporation continued to be cordial throughout the year 2016-17. 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 in protest against rumors of strategic sale of DCI. However, there was no disruption of any nature on the day to day working of the Company. Further, there was no impact of the Strike on the operations of the DCI vessels and all the operational vessels are in uninterrupted dredging operations. There were no untoward incidents/disruption in any of the offices of the Company or onboard vessels.

WELFARE MEASURES:

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, Incentive Scheme for acquiring higher qualifications, Merit Scholarships for the children of SC/ST employees, and Mediclaim medical attendance facility for the retired employees etc. Other welfare measures such as House Building Advance, Special casual leave for maternity/paternity and incentives for adopting small family norms and advances for children’s higher education, marriage and purchase of computer etc., are extended to the employees.

HUMAN RESOURCES DEVELOPMENT

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

i) During the year 2016-17, 311 employees were trained in various training programs.

ii) During the year 2016-17, 15 DCCP Apprentice Trainees and 9 Industrial Trainees were inducted for training for a period of 12 months.

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 co-ordinated. 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 Joint General Manager (HSE) is designated as 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.

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 set up at DCI Head Office, Visakhapatnam and the same is notified in the web-site also.

PROGRESSIVE USE OF HINDI

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 thereunder are being awarded cash awards.

Hindi Fortnight was celebrated during September, 2016. Various Competitions were conducted for employees and nearby school/College students during the Hindi Fortnight Celebration held from 06-21, September, 2016. DCI participated in the Hindi Salakar Samiti meeting of the Ministry held on 08.03.2017. The officers of the Corporation actively participated in the meetings and activities of the Town Official Language Implementation Committee, (TOLIC) Visakhapatnam during the year. Two Employees of the Corporation (Hindi Cell) attended one National Seminar and one International Hindi Seminar held at Visakhapatnam during the year. 3 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.. Viswa Hindi Diwas was celebrated and a Lecture session on “The Global perspectives of Hindi” was conducted on 10.01.2017.

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.

CITIZEN’S CHARTER

As per the directives of the Government of India, to focus on the committment 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 committment 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.

CHANGES IN ACCOUNTING POLICY

Pursuant to the adoption of the Ind AS, the Accounting Policies have been revised as on transition date and the effect of the same has been reflected in the results. The figures for the previous year have been recast as per the new Ind AS adopted by the company.

ACTIVITIES OF VIGILANCE DEPARTMENT

During the year 2016-17, the Vigilance department has taken significant measures to integrate its activities with other departments of the Corporation and provide a pro-active orientation to interface it with managerial process. As a part of the same, periodic, surprise and CTE type inspections have been carried out and systemic deficiencies and irregularities noticed have been communicated to concerned departments for necessary action.

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

Vigilance Awareness week was observed during 31st October 2016 to 5th November, 2016. CVC’s theme for this year’s Vigilance Awareness Week is “Public participation in promoting integrity and eradicating corruption” with emphasis on spreading awareness in fight against corruption to all sections of Society. Painting Competition was organised for the school students in various urban corporate/private schools, urban Govt. /Aided schools in Visakhapatnam. In addition to this, inter-collegiate Essay writing and Elocution competitions in English and Telugu were conducted at Head Office. A customer redressed camp for customers/vendors/contractors was organized on 01.11.2016. A panel discussion on the topic “Public participation in promoting integrity and eradicating corruption” was held on 02.11.2016 . A workshop on “Role of RTI in Public Participation in promoting integrity and eradicating corruption” was also conducted for general public during the week.

STATUTORY AUDITORS

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 2016-17. 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 '4.25 lakhs plus service tax as applicable for the year 2016-17 for approval of the Members at this AGM.

INDEPENDENT AUDITORS’ REPORT

The Independent Auditors’ Report on the Accounts for 2016-17 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.

SECRETARIAL AUDIT REPORT

The report of the Secretarial Auditor — 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 of the qualification of the Secretarial Auditor has been given elsewhere in this report.

C&AG COMMENTS

The Comptroller and Auditor General of India has issued “NIL” Comments on the Accounts of the Company for the year ended 31st March, 2017 and the same are placed next to the Statutory Auditor’s Report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

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 B. Poiyaamozhi ceased to be director of the Company on 31/08/2016 on attaining superannuation.

Ministry of Shipping vide its letter dated 22/09/2016 communicated appointment of Shri Sanjeev Ranjan as part time official Director on the Board of the Company. Ministry of Shipping vide its letter dated 03/03/2017 communicated appointment of Shri Pravir Krishn as part time official Director on the Board of the Company in place of Shri Barun Mitra. Shri Pravir Krishn has been appointed by the Board as additional director. Ministry of Shipping appointed Dr.Pradeep Kumar in place of Mr Sanjeev Ranjan vide letter date 29/5/17. Dr.Pradeep Kumar has been appointed by the Board as additional director. Ministry of Shipping has informed the cessation of directorship of Shri Pravir Krishn abd Shri Pradeep Kumar from the Board of DCI with effect from 25/07/2017 and 27/07/2017 respectively.

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

The directors recommend for approval of the Members the above appointments/re-appointment.

ACKNOWLEDGEMENTS

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 Board expresses its sincere thanks to the Tax authorities for their co-operation. the Board also expresses its sincere thanks to the suppliers and vendors for their support and co-operation.

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

Date : 31/07/2017 CHAIRMAN AND MANAGING DIRECTOR