MIRA
INFORM REPORT
|
Report Date : |
14.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
DREDGING CORPORATION OF INDIA LIMITED |
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Registered Office : |
Core-2, 1st Floor, “Scope Minar” Plot No.2A and 2B,
Laxminagar District Centre, Delhi;110091 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.03.1976 |
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Com. Reg. No.: |
55-008129 |
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CIN No.: [Company
Identification No.] |
L29222DL1976GOI008129 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
VPND0046E |
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Legal Form : |
Public limited liability company. Company’s shares are listed on the
Stock Exchange. |
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Line of Business : |
The company is engaged in to provide integrated dredging services to major ports in India. It took over operations from the Central Dredging Organisation. The company’s business is to render capital and maintain dredging service to ports and ensure availability of adequate draught for ships. It also undertakes inland dredging. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 39500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is well-established and reputed having fine track records. The
company is progressing well. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be regarded as promising business partner in medium to
long-run. |
LOCATIONS
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Registered Office : |
Core-2, 1st Floor, “scope Minar” Plot No.2A and 2B, Laxinagar Disrict Centre, Delhi;110091 |
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Tel. No.: |
91-11- 22448528 |
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Fax No.: |
91-11 -22448527 |
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Web Site: |
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Head Office : |
"DREDGE
HOUSE", Port Area, Visakhapatnam - 530 035. |
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Tel. No.: |
91-891 2564866 |
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Fax No.: |
91-891 2560581 |
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PROJECT OFFICE: |
No.18, Mothilal Street T.Nagar, |
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Tel. No.: |
91-44-28262530 |
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Fax No.: |
91-44-28235139 |
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E-Mail : |
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PROJECT OFFICE: |
101-A, Mittal Chamber Nariman Point, Mumbai, India |
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Tel. No.: |
91-22-22022437 |
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Fax No.: |
91-22-22045239 |
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E-Mail : |
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PROJECT OFFICE: |
Old State Medical Buildings Paradip Port Trust Paradip-754 149, India |
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Tel. No.: |
91-6722-222261 |
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Fax No.: |
91-6722-221285 |
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E-Mail : |
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PROJECT OFFICE: |
Shantiniketan, 5th Floor, Room No.9 Kolkata-700 017, India |
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Tel. No.: |
91-33-22826906 |
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Fax No.: |
91-33-22825313 |
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E-Mail : |
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PROJECT OFFICE: |
5th Floor, South Wing Dredge House, Port AreaVisakhapatnam-530 005, India |
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Tel. No.: |
91-891-2514812 |
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Fax No.: |
91-891-2514812 |
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E-Mail : |
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PROJECT OFFICE: |
H.No.39-3907 |
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Tel. No.: |
91-484-2356232 |
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Fax No.: |
91-484-2356627 |
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E-Mail : |
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PROJECT OFFICE: |
Ground Floor, Locker Room Building Insite: N.M.P.T. Premises Panambur |
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Tel. No.: |
91-824-2408555 |
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Fax No.: |
91-824-2408222 |
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E-Mail : |
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PROJECT OFFICE: |
Project Office Chiranjibpur (Post) Haldia - 721 604, India |
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Tel. No.: |
91-3224-252234/252165 |
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Fax No.: |
91-3224-252109 |
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E-Mail : |
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PROJECT OFFICE: |
House No.110 West Gate Main Road Nagapattinam-611 001 Tamilnadu, India |
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Tel. No.: |
91-4365-220562 |
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Fax No.: |
91-4365-220562 |
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E-Mail : |
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PROJECT OFFICE: |
House No.9699 & 14/35-A, Semmamadam Dist, Tamilnadu, India |
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Tel. No.: |
91-4573-221885, 221886 |
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Fax No.: |
91-4365-221884 |
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E-Mail : |
DIRECTORS
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Name : |
Shri N.K.Gupta |
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Designation : |
Chairman and Managing Director |
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Name : |
Shri A.K.Bhalla, I.A.S. |
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Designation : |
Director |
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Name : |
Shri T.Srinidhi |
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Designation : |
Director |
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Date of Birth: |
03.03.1995 |
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Qualifications: |
M.A (Economics), MBA |
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Date of Appointments: |
04-04-2001 |
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Name : |
Dr.S.Narasimha Rao |
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Designation : |
Director |
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Name : |
Dr.S.Kathiroli |
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Designation : |
Director |
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Name : |
Shri A.K.Dhar |
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Designation : |
Director (Finance.) |
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Name : |
Cmde G.V.Ratnam |
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Designation : |
Director (Operations & Technology.) |
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Date of Appointment : |
07-06-2006 |
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Name : |
Shri C.V.Dikshith |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Shri Y.V.Subbarao |
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Designation : |
COMPANY SECRETARY |
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Name : |
Shri K.Kiriti |
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Designation : |
GENERAL MANAGER
(Finance.) |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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A) Shareholding
Pattern and Promoter Group |
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1) Indian |
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a) Individuals/ Hindu Undivided family |
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0 |
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b) Central Government/ State Government (s) |
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9 |
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c) Bodies Corporate |
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0 |
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d) Financial Institutions/ Banks |
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0 |
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e) Any Other |
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0 |
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Sub total: |
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9 |
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2) Foreign |
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a) Individual (Non-Resident Individuals/individuals) |
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0 |
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b) Bodies Corporate |
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0 |
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c) Institutions |
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0 |
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d) Any Other (Specify) |
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0 |
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Sub total: |
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0 |
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Total Share Holding (A) =(A) (1)+(A) (2) |
|
9 |
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B) Public Speaking |
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1) Institutions |
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a) Mutual Funds |
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11 |
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b) Financial Institution/ Banks |
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10 |
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c) Central Government/ State Governments |
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0 |
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d) Venture Capital funds |
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0 |
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e) Insurance Companies |
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5 |
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f) Foreign Institutional Investors |
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6 |
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g) Foreign Venture Capital Investors |
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0 |
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h) Any Other (Specify) |
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0 |
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Sub total: |
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32 |
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2) Non- Institutions |
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a) Bodies Corporate |
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467 |
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b) Individuals 1) Individual Sahre Holders Holdings Nominal Share Capital Upto Rs. 0.1000 Millions |
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48892 |
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2) Individual shareholders holding nominal share capital upto Rs.0.100 millions |
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4 |
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c) Any Other (Specify) Non resident Indians |
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312 |
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ii) Trusts |
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3 |
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iii) Clearing Members |
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36 |
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Sub total: |
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49714 |
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Total Public Shareholding (B)= (B) (1)+(2) |
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49746 |
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c) Shares held by custodians and against which Depository Receipts have been issued |
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Grand Total A+B+C |
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49755 |
BUSINESS DETAILS
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Line of Business : |
The company is engaged in to provide integrated dredging services to major ports in India. It took over operations from the Central Dredging Organisation. The company’s business is to render capital and maintain dredging service to ports and ensure availability of adequate draught for ships. It also undertakes inland dredging. |
GENERAL
INFORMATION
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No. of Employees : |
1293 |
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Bankers : |
Syndicate Bank State Bank of India ABN AMRO Bank HSBC |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
M/s. Sriramamurthy & Co, Chartered Accountants, |
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Address : |
Flat No. 3C, Sai Sadan Apartments 47-9-39/17, Dwarakanagar Visakhapatnam - 530 016 |
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Associates : |
Government of India Undataring Companies |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
28000000 |
Equity Shares |
Rs.10/- each |
Rs.0.280 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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280.000 |
280.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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9650.149 |
8364.438 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
9930.149 |
8644.438 |
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LOAN FUNDS |
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1] Secured Loans |
|
0.000 |
0.000 |
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2] Unsecured Loans |
|
463.853 |
626.145 |
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TOTAL BORROWING |
|
463.853 |
626.145 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
228.960 |
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TOTAL |
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10394.002 |
9499.543 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
3334.715 |
3550.236 |
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Capital work-in-progress |
|
244.147 |
137.874 |
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INVESTMENT |
|
55.001 |
10.001 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
104.757 |
135.349 |
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Sundry Debtors |
|
1962.068 |
1425.531 |
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Cash & Bank Balances |
|
4721.428 |
4026.608 |
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Other Current Assets |
|
829.837 |
836.782 |
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Loans & Advances |
|
882.082 |
599.948 |
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Total
Current Assets |
|
8500.172 |
7024.218 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
|
1245.710 |
794.443 |
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Provisions |
|
494.323 |
428.343 |
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Total
Current Liabilities |
|
1740.033 |
1222.786 |
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Net Current Assets |
|
6760.139 |
5801.432 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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|
|
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TOTAL |
|
10394.002 |
9499.543 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
|
0.000 |
0.000 |
|
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Other Income |
|
5428.862 |
5516.188 |
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Total Income |
|
5428.862 |
5516.188 |
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|
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|
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Profit/(Loss) Before Tax |
|
1718.335 |
1758.676 |
|
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Provision for Taxation |
|
4116.390 |
|
|
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Profit/(Loss) After Tax |
|
1764.616 |
1132.887 |
|
|
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Earnings in Foreign Currency : |
|
|
|
|
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|
Chartering of dredgers |
|
544.252 |
577.767 |
|
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Reimbursement of spares and fuel etc,issued |
|
74.687 |
28.368 |
|
Total Earnings |
|
618.939 |
606.135 |
|
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|
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Imports : |
|
|
|
|
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Components and spare parts |
|
337.389 |
377.428 |
|
|
Value of imported spares and components
consumed |
|
357.379 |
421.687 |
|
|
Value of indigenous spares and components
consumed |
|
24.114 |
18.087 |
|
|
Percentage of imported spares and components
consumed to total spares and components |
|
9.368 |
95.89 |
|
|
Percentage of indigenous spares and
components consumed to total spares and components consumed |
|
0.632 |
0.411 |
|
Total Imports |
|
728.882 |
913.503 |
|
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Expenditures : |
|
|
|
|
|
|
Operation |
|
2880.713 |
2497.949 |
|
|
Administrative Expenses |
|
264.663 |
334.097 |
|
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Interest |
|
29.089 |
37.125 |
|
|
Depreciation & Amortization |
|
370.915 |
471.048 |
|
|
Provision |
|
82.222 |
488.131 |
|
Total Expenditure |
|
3627.602 |
3828.350 |
|
QUARTERLY
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st Qtr |
2nd Qtr |
3rd Qtr |
|
Sales
Turnover |
1056.000 |
1309.000 |
1320.500 |
|
Other
Income |
98.000 |
108.000 |
104.000 |
|
Total
Income |
1154.000 |
1417.000 |
1424.500 |
|
Total
Expenditure |
678.500 |
913.300 |
1023.200 |
|
Operating
Profit |
475.500 |
503.700 |
401.300 |
|
Interest |
06.000 |
05.500 |
05.000 |
|
Gross
Profit |
469.500 |
498.200 |
396.300 |
|
Depreciation |
92.500 |
90.300 |
127.200 |
|
Tax |
44.500 |
47.800 |
40.200 |
|
Reported
PAT |
332.500 |
360.100 |
228.900 |
200606 Quarter 1 --------------- Notes Expenditure Includes Staff
Cost Rs 156.00 million Repairs & Maintenance Rs 21.00 million Spares &
Stores Rs 132.50 million Fuel & Lubricants Rs 289.00 million Other Expenses
Rs 80.00 million Tax Indicates Provision for Current Tax Status of Investor
Complaints for the quarter ended June 30, 2006 Complaints Pending at the
beginning of the quarter 02 Complaints Received during the quarter 161
Complaints disposed off during the quarter 161 Complaints unresolved at the end
of the quarter 02* The complaints as on June 30, 2006 were subsequently
resolved on July 03, 2006. 1. Other Expenses Indicates Net of prior period and
extra-ordinary items. 2. N.A. - Not applicable since DCI is not a Manufacturing
Company. 3. DCI Tug-VI, an ocean-going tug built in 1979, sank 11 nautical
miles off point Calimer on May 06, 2006. Pending ascertainment of cause of
damage and liability towards wreck removal, no income / expenses have been
recognised for the current quarter. 4. The Company made the following changes
in its Accounting Policies w.e.f. April 01, 2006. a) The Accounting Policy No.
4(a), whereby Fuel oil supplied to dredgers was treated as consumed and charged
to expenditure, has been discontinued and the quality on board the dredgers at
the end of the accounting period is valued and brought into accounts as Stock
of Fuel. b) The Accounting Policy No. 4(c), relating to creation of provision
for drydock expenditure has been discontinued. The results of the previous year
and corresponding quarter of the previous year have been re-cast as per the
present accounting policies, to make them comparable with current quarter
results. 5. The above unaudited results have been taken on record by the Board
of Directors at its meeting held on July 29, 2006
200609 Quarter 2 --------------- Notes EPS is Basic
Expenditure Includes Staff Cost Rs 158.50 million Repairs & Maintenance Rs
130.40 million Spares & Stores Rs 122.50 million Fuel & Lubricants Rs
400.00 million Other Expenses Rs 101.90 million Tax Indicates Provision for
Current Tax Status of Investor Complaints for the quarter ended September 30,
2006 Complaints Pending at the beginning of the quarter 02 Complaints Received
during the quarter 138 Complaints disposed off during the quarter 134
Complaints unresolved at the end of the quarter 06* 1. ($) net of prior period
and extra ordinary items. 2. N.A. - Not applicable since DCI is not a
Manufacturing Company. 3. DCI Tug-VI, an ocean-going tug built in 1979, sank 11
nautical miles off point Calimer on May 06, 2006. Pending ascertainment of
cause of damage and liability towards wreck removal, no income / expenses have
been recognised for the current quarter / period. 4. The Company made the
following changes in its Accounting Policies w.e.f. April 01, 2006. a) The
Accounting Policy No. 4(a), whereby Fuel oil supplied to dredgers was treated
as consumed and charged to expenditure, has been discontinued and the quality
on board the dredgers at the end of the accounting period is valued and brought
into accounts as Stock of Fuel. b) The Accounting Policy No. 4(c), relating to
creation of provision for drydock expenditure has been discontinued. The
results of the previous year and corresponding quarter / period of the previous
year have been re-cast as per the present accounting policies, to make them
comparable with current quarter results. 5. The above unaudited results have
been taken on record by the Board of Directors at its meeting held on October
28, 2006.
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
|
0.06 |
0.09 |
|
Long Term Debt-Equity Ratio |
|
0.06 |
0.09 |
|
Current Ratio |
|
3.24 |
2.74 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
|
0.60 |
0.63 |
|
Inventory |
|
36.26 |
42.78 |
|
Debtors |
|
2.99 |
3.62 |
|
Interest Cover Ratio |
|
56.78 |
45.97 |
|
Operating Profit Margin(%) |
|
41.81 |
43.22 |
|
Profit Before Interest And Tax Margin(%) |
|
34.50 |
34.25 |
|
Cash Profit Margin(%) |
|
42.12 |
30.56 |
|
Adjusted Net Profit Margin(%) |
|
34.81 |
21.59 |
|
Return On Capital Employed(%) |
|
17.79 |
20.03 |
|
Return On Net Worth(%) |
|
19.00 |
13.70 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.499.00 |
|
Low |
Rs.490.00 |
LOCAL AGENCY
FURTHER INFORMATION
Director Report
FINANCIAL RESULTS
The Company earned an operational income of Rs.5068.989 million compared to Rs.5247.887 million for the previous year. The other income is Rs.359.873 million as compared to Rs.268.301 million for the previous year. The total income for the year is Rs.5428.862 million as compared Rs.5516.188 million for the previous year. The lower income from operations during 2005- 06 compared to 2004-05 is mainly on account of 15% rate reduction at Haldia. The reduction came into* effect from 15-02- 2005. The effect of reduction was for one and half month during 2004-05 as against for the full year during 2005-06. However this effect has been partially offset by higher escalation income. Profit after tax is Rs. 1764.616 million as compared to Rs.1132.887 million for the previous year.
DCIFLEET
As on 31" March 2006 your Company has in operation among others, 10 Trailer Suction Hopper Dredgers (TSHD)and 2 Cutter Suction Dredgers(CSD). DCI Tug-VI an ancillary craft capsized on 6-05-2006 at Nagapattinam. The Craft wise particulars are at Annexure-l.
DREDGING OPERATIONS
The dredging capacity available with DC) was 798.50 million CuM.as on 31" March 2006 which was the same as that for last year. During the year under review, the quantity dredged under various contracts amounted to 727.49 million Cu.M. as against 723.11 million Cu.M for last year. This represents 91.10 % of DCI's capacity as compared to 90.56% for last year.
During the year under review maintenance dredging contracts were executed
at Kolkata/ Haldia, Paradip, Visakhapatnam, Sothern Naval Command (Navy) Kochi,
New Mangalore, MGPT, Jawaharlal Nehru Port, Kandla, Sanghi Industries,
Sanghipur and Sethusamudram Ship Channel Project. The 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. 2009 were obtained for all dredgers.
The charter hire agreement of the Cutter Suction Dredger, DCI Dredge Aquarius with M/s Dredging International was extended from June 2005 for two years, upto June, 2007.
DCI DR XVI and DCI DR XVII on charter to M/s AL Ghanah Contracting, WLL, Bahrain returned to India after completion of their assignments.
SETHUSAMUDRAM SHIP CHANNEL PROJECT
As on 31st March, 2006 the Company has made a contribution of Rs.55.000 million towards equity for the Special Purpose Vehicle, Sethusamudram Corporation Limited. The Company has commenced the dredging work in E3-E4 stretch of the Sethusamudram Ship Channel of about 13 Km involving approximately 13 million cubic meters of dredging to attain a depth of -12M in Palk Strait area adjoining Bay of Bengal which was awarded to the Company.
PLAN PROPOSALS
Order has been placed with Mazagaon Dock Limited, Mumbai in October, 2005 for procurement of one number Cutter Suction Dredger of 2000 Cu.M solids per hour capacity and is expected to be delivered by December, 2007. Tendering action is on hand for procuremnt of one number 5000 Cu.M hopper capacity Trailer Suction Hopper Dredger and for two numbers Survey Launches. Action is also on hand for procurement of one number Backhoe dredger and two numbers self propelled hopper barges for carrying out dredging works in front of berths and jetties and for consolidated strata, which cannot be carried out by TSHDs or CSDs.
CHARTER-IN OF 4700 Cu.M HOPPER CAPACITY, TRAILER SUCTION
HOPPER DREDGER
To augment DCI's capacity and keeping in view the likely growth in the dredging market, a Charter Party agreement has been signed by M/s Transchart on behalf of DCI for charter of a 4700 Cu.M hopper capacity trailer suction hopper dredger on 06-07-2006 initially for a period of one year from the date of delivery of dredger to DCI and extendable for two more years at the option of DCI. The dredger is expected to be delivered to DCI during
August, 2006.
MEMORANDUM OF UNDERSTANDING
For the 15th consecutive year, your Company has signed Memorandum of Understanding (MOD) with Government of India for the year 2006-2007.
ISPS:-
International Ship Security Certificates (ISSC) valid upto the year 2009 were obtained for all dredgers.
ISO 9001:2000:-
Quality management system (QMS) Manual and concerned departmental Manuals have been signed and issued for implementation. Further process of Internal Audits and External Audits are being planned/carried out for obtaining Certification during the year 2006-07.
Project Locations :•
The project offices of the Company at present are situated at Haldia,
Kolkata, Paradeep, Visakhapatnam, Chennai, Nagapattinam, Cochin, Mangalore,
Mumbai. The Registered Office of the Company is at New Delhi and the Head
Office is at Visakhapatnam.
DREDGING INDUSTRY STRUCTURE AND DEVELOPMENT
India has an extensive coastline of approximately 7,500 kilometers.
There are 12 major ports under the administrative control of the Ministry of
Shipping, Road Transport and Highways (MoSRTH), approximately 180 non-major
ports under the administrative control of the Government of India (GOI), State
Governments and private ports.
Approximately 75% of India's port traffic by volume is handled by the Major
Ports, and the balance handled by the non-major ports. As per the GDI's 10th
Five Year Plan, major ports represent approximately 93% of the overall Indian
dredging market (excluding private ports) by volume and approximately 92% and
95% of the overall Indian maintenance dredging and capital dredging markets
(excluding private ports) respectively.
In the coming years, it is expected that there will be substantial
increase in the international trade levels which will necessitate increased
port capacities. The annual GDP growth rates in India are targeted by the
Planning Commission at an average 8% from 2002-03 to 2006-07, which is expected
to result, among others, in considerable growth in trade and related port
traffic. The tenth five year plan among others envisages port traffic of 415
million tons and port capacity of 470 million tons by 2006-07 against 289 million
tons and 344 million tons respectively in the year 2001-02.
Expansion of port capacity either through construction of new ports or
expansion and development of existing ports would create opportunities for both
capital dredging and increased maintenance dredging.
As on 31st March, 2006 the Company has made a contribution of Rs.5.50
crore towards equity for the Special
Purpose Vehicle, Sethusamudram Corporation Limited. The Company has
commenced the dredging work in E3-E4 stretch of the Sethusamudram Ship Channel
of about 13 Km involving approximately 13 million cubic meters of dredging to
attain a depth of -12M in Palk Strait area adjoining Bay of Bengal which was
awarded to the Company.
Apart from capital and maintenance dredging requirement of major ports,
which together constitute approximately 93% of the Indian dredging market,
requirements also exist for beach nourishment, shore protection and land
reclamation though at a much lower scale. Inland water ways dredging is largely
confined to river bank ports. But Indian dredging market is primarily
maintenance dredging driven.
Out of a total Rs 650 crore dredging market per annum at Major Ports,
approximately Rs.600 crores represents
maintenance dredging market, and the balance Rs.50 crores, capital
dredging. The substantially lower capital
dredging market is primarily due to uncertainty in funding availability
and realization of port development programs. However, as new projects are
likely to materialize in near future, there may be a quantum jump in capital
dredging in the years to come.
CORPORATE PERFORMANCE
Operations
DCI is the largest dredging company in India and has generally operated
at close to 100% capacity utilization. The capacity utilization is the ratio of
the amount actually dredged by DCI in a year and its derived annual dredging
capacity. Annual dredging capacity is derived from a number of parameters,
including installed hopper volume, estimated number of days of dredging,
location, soil characteristics, number of loads and dumping distance. In
2005-2006, DCI operated at a capacity utilization of approximately 91.10%
(based on actual days dredged and other relevant factors). The lower capacity
utilization is mainly on account of decrease in the number of dredging days
than targeted in respect of some dredgers due to extended dry-dock periods,
emergency dry docking and break downs.
Fixed Assets:
1. Land
a)
Freehold
b)
Lease Hold
2. Buildings
3. Dredgers
4. Ancillary Crafts
5. Pipeline, Ball and Sockets Joints etc.
6. Other Operational Assets
7. Furniture, fitting Equipments etc
8. Computers
9. Motor Vechicles
10. Temp. Structures Fixture/ erections
The company was incorporated on March 1976
as a Private Limited fully owned Government undertaking and was converted into
Public Limited Company in March 1992 after Government of India disinvested
1.44% of its shareholding.
The company was commenced to provide integrated dredging services to
major ports in India. It took over operations from the Central Dredging Organisation.
The main activity of COMPANY is to
render capital and maintenance dredging services to ports and ensure
availability of adequate draught for ships. It also undertakes inland dredging.
The company has in operation, among others, 10 Trailer Suction Hopper
Dredgers, 2 Cutter Suction Dredgers and 2 Tugs with a total dredging capacity
of 798.50 lakh cubic meters as on 31st March, 2005. The company has been
conferred with the status of 'MINI RATNA - CATEGORY I - PUBLIC SECTOR
ENTERPRISE' by Government of India (GOI).
The Company has taken initial steps for acquisition. During 2001-02 the
company has executed the Taichung Harbour,Taiwar deploying its 7400 Cu.M
capacity TSD COMPANY. The Company is
exploring options for a joint venture with an international dredging company to
enhance its experience, expertise, dredging fleet and also market assess.
Further in August 2004, the company has received Expression of Interest from
6-7 International firms in the dredging sector.
The Company has planned to acquire one Trailer Suction Hopper Dredger
with a hopper capacity of 5000 Cu.M and One Dumb Cutter Suction Dredger with
pumping capacity of 2000 Cu.M solids per hour by the year 2007.
The company enjoys a high market share due to the favourable policy of
the MoS. Till now the policy favoured
Company because of the nomination process that allowed all ports to
negotiate with the company directly for dredging services rather than award
contracts by competitive bidding.
The Company is contributing Rs.300.000 Millions towards the equity of
Sethusamudram Corporation Limited, a project of Sethusamudram Ship Channel.The
Company has got the dredging work in E3-E4 stretch of the project of about 13
km involving approximately 13 million cubic meters of dredging to attain a
depth of 12M in Palk Straight Area. The Company has commenced the work from 2nd
July,2005 which is to be completed within a period of 24 months.
The Head Office of the company is strategically located on the eastern
seaboard of India at Visakhapatnam.
Company helps to ensure the continuous availability of the desired
depths in shipping channels of the Major and Minor Ports, Navy, fishing
harbours and other maritime organizations.
The horizons of dredging activities are fast expanding
worldwide, and its services are increasing in demand and put to use in the
areas of Environmental Protection, Tourism, Flood Control, Irrigation, Power
Generation, Port development, Mining, Reclamation, Laying of Off-shore
Pipelines and so on.
Profile
The company was established in the year 1976
to provide dredging services to the Major Ports of the country in India. Company is a pioneer organization in the
field of dredging and maritime development.
Company is fully equipped to offer the complete range of dredging and
allied services to the users in India and Abroad and to provide the vital
inputs for the national development. It's Head Office is strategically situated
on the east coast of India at Visakhapatnam,
Company helps to ensure continuous availability of the desired depths in
the shipping channels of the major and minor Ports, Indian Navy, Fishing
Harbors and other maritime organizations. It further serves the Nation in a
variety of ways, be it capital dredging for creation of new harbors, deepening
of existing harbors or maintenance dredging for the upkeep of the required
depths at various Ports along the 5,700 Kms coastline of India.
Company owns most modern and sophisticated fleet
consisting of two Cutter Suction Dredgers and Ten Trailer Suction Dredgers.
During the year 2002-2003, the Company has earned the highest ever Turn-over of
Rs 5013 million comparatively to that of Rs 4028 million of the previous year.
Profit before interest and tax during 2002-2003 is Rs 1646 Million as against Rs
1572 million in 2001-2002.
company is an M.O.U. signing Company with Government of India and is being
consistently rated as "EXCELLENT" for the last five years
Company has been declared as a MINI RATNA- CATEGORY-I Public Sector Enterprise
by the Government of India. Consequent upon achievement of "MINI RATNA"
status, Company has been empowered with enhanced autonomy with regard to
Capital Expenditure, Establishment of Joint Ventures, Overseas Offices,
Technology Alliances, etc.,
Company is one among the Public Sector Undertakings
of India in which the Government has disinvested it's share holding. The shares
of the Company are listed at Delhi, Mumbai and Calcutta Stock Exchanges of
India.
The company is in trade terms with:
Ř Alfa Electronic Services
Ř Bhaskar & Company
Ř Union Maritime Syndicate
Ř New Goa Ship Repairs
Ř Utkal Marine
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or anti-terrorism
sanction laws or whose assets were seized, blocked, frozen or ordered forfeited
for violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.15 |
|
UK Pound |
1 |
Rs.84.38 |
|
Euro |
1 |
Rs.57.22 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
70 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|