MIRA INFORM REPORT

Report Date :

02.11.2012

IDENTIFICATION DETAILS

Name :	DREDGING CORPORATION OF INDIA LIMITED
Registered Office :	Core-2, First Floor, “Scope Minar”, Plot No.2A and 2B, Laxminagar District Centre, Delhi – 110091, Delhi
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.03.1976
Com. Reg. No.:	55-008129
Capital Investment / Paid-up Capital :	Rs. 280.000 Millions
CIN No.: [Company Identification No.]	L29222DL1976GOI008129
TAN No.: [Tax Deduction & Collection Account No.]	VPND0046E
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
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.
No. of Employees :	631 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (59)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 50000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having good track record. There appears drastic fall in the profitability of the company. However, general financial position of the company appears to be good. Fundamental seems strong. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealing at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Core-2, First Floor, “Scope Minar”, Plot No.2A and 2B, Laxminagar District Centre, Delhi – 110091, Delhi, India
Tel. No.:	91-11- 22448528
Fax No.:	91-11 -22448527
E-Mail :	sreekanth@dredgeindia.co.in
Website :	http://www.dredge-india.com
Head Office :	"DREDGE HOUSE", Port Area, Visakhapatnam - 530 035, Andhra Pradesh, India
Tel. No.:	91-891 2523250
Fax No.:	91-891 2560581

DIRECTORS

Name :	Capt. D. K. Mohanty
Designation :	Managing Director
Date of Birth/Age :	57 Years
Qualification :	Master (FG)
Date of Appointment :	30.11.2011
Name :	Mr. P.V.Ramana Murthy
Designation :	Director (Finance)
Date of Birth/Age :	15.12.1954
Qualification :	B.com, ACA
Date of Appointment :	05.12.2007
Name :	Cmde. P. Jayapal (Retd.)
Designation :	Director (Operations and Technical)
Date of Birth/Age :	57 Years
Qualification :	Master (FG), Charge Hydrographic Surveyor
Date of Appointment :	18.04.2011
Name :	Mr. Rakesh Srivastava
Designation :	Director
Name :	Dr. S.Narasimha Rao
Designation :	Director
Date of Birth/Age :	71 Years
Qualification :	M.E. PH.D
Name :	Mr. S.Balachandran
Designation :	Director
Date of Birth/Age :	27.08.1946
Qualification :	M.Sc.
Date of Appointment :	11.11.2011
Name :	Mr. Vinai Kumar Agarwal
Designation :	Director
Date of Birth/Age :	30.10.1950
Qualification :	BE
Date of Appointment :	11.11.2011
Name :	Mr. M. C. Jauhari
Designation :	Director
Date of Birth/Age :	02.08.1962
Qualification :	M.Sc.
Date of Appointment :	21.06.2012

KEY EXECUTIVES

Name :	Mr. Vinai Kumar Agarwal
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	21997700	78.56
Sub Total	21997700	78.56
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	21997700	78.56
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1044399	3.73
Insurance Companies	1457791	5.21
Foreign Institutional Investors	644754	2.30
Sub Total	3146944	11.24
(2) Non-Institutions
Bodies Corporate	454104	1.62
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Millions	2188694	7.82
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions	145869	0.52
Any Others (Specify)	66689	0.24
Non Resident Indians	39206	0.14
Clearing Members	13369	0.05
Trusts	14114	0.05
Sub Total	2855356	10.20
Total Public shareholding (B)	6002300	21.44
Total (A)+(B)	28000000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	28000000	100.00

BUSINESS DETAILS

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

No. of Employees :

631 (Approximately)

Bankers :

· Syndicate Bank

· State Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
From Banks	2599.531	0.000
Secured by charge on TSHD DCI DR XIX Loan is payable in 20 equal half yearly installments commencing from six months after delivery of the dredger
Total	2599.531	0.000
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Deposits from contractors	5.314	7.058
Advances from customers	4.158	4.952
Total	9.472	12.010

Banking Relations :	--
Auditors :
Name :	G R Kumar and Company Chartered Accountants
Address :	Flat No. 9, Merry Life Apartments, Doctors colony, Peda waltair, Visakhapatnam - 500 017, Andhra Pradesh, India

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3,00,00,000	Equity Shares	Rs.10/- each	Rs. 300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1400	Equity Shares	Rs.10/- each	Rs. 0.014 Millions
27998600	Equity Shares	Rs.10/- each	Rs. 279.986 Millions
	Total		Rs. 280.000 Millions

Reconciliation of the number of shares outstanding at the begining and end of the reporting period

Particulars	As at 31st March 2012		As at 31st March 2011
	No. `	Rs in Millions	No. `	Rs. in Millions
Outstanding at the begining of the year	28000000	280.000	28000000	280.000
Issued during the year	0	0.000	0	0.000
Outstanding at the end of the year	28000000	280.000	28000000	280.000

Shares issued for consideration other than cash for past five years

As at 2011-2012 (Rs. In Millions)	As at 2010-2011 (Rs. In Millions)
279.986	279.986

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		280.000	280.000	280.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		13537.300	13405.490	13010.343
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13817.300	13685.490	13290.343
LOAN FUNDS
1] Secured Loans		2599.531	0.000	0.000
2] Unsecured Loans		9.472	12.010	0.000
TOTAL BORROWING		2609.003	12.010	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		16426.303	13697.500	13290.343
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5332.062	4872.713	2844.620
Capital work-in-progress		484.130	2.013	2691.328
INVESTMENT		300.001	300.001	300.001
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	976.617	918.671	894.511
	Sundry Debtors	3893.050	3823.840	4057.177
	Cash & Bank Balances	783.155	2352.739	2433.436
	Other Current Assets	2256.019	1741.698	1213.327
	Loans & Advances	4813.071	2453.362	1228.421
Total Current Assets		12721.912	11290.310	9826.872
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	308.013	846.619	592.793
	Other Current Liabilities	2000.019	1848.607	1600.886
	Provisions	103.770	72.311	178.799
Total Current Liabilities		2411.802	2767.537	2372.478
Net Current Assets		10310.110	8522.773	7454.394
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		16426.303	13697.500	13290.343

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2009
	SALES
		Income	4916.582	5071.415	6454.091
		Other Income	129.247	155.833	485.369
		TOTAL (A)	5045.829	5227.248	6939.460
Less	EXPENSES
		Employee Benefit Expenses	928.634	667.310
		Repairs and Maintenance (Vessels)	639.167	234.539
		Fuel and Lubricants	1605.303	1994.829
		Spares and Stores	437.235	416.060
		Insurances	110.066	108.667
		Other expenses	270.292	653.933
		TOTAL (B)	3990.697	4075.338	5505.522
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1055.132	1151.910	1433.938
Less	FINANCIAL EXPENSES (D)		0.000	0.000	1.029
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1055.132	1151.910	1432.909
Less/ Add	DEPRECIATION/ AMORTISATION		879.522	703.214	660.202
	PROFIT BEFORE PRIOR PERIOD ADJUSTMENT		175.610	448.696	772.707
Less/ Add	PRIOR PERIOD ADJUSTMENTS		0.000	0.000	3.870
	PROFIT BEFORE TAX		175.610	448.696	776.577
Less	TAX		43.800	53.549	76.039
	PROFIT AFTER TAX		131.810	395.147	700.538
	Earnings Per Share (Rs.)		0.471	1.411	2.502

QUARTERLY RESULTS

PARTICULARS	30.06.2012
Net Sales	1292.700
Total Expenditure	1142.700
PBIDT (Excl OI)	150.000
Other Income	7.000
Operating Profit	157.000
Interest	000
Exceptional Items	000
PBDT	157.000
Depreciation	221.000
Profit Before Tax	(64.000)
Tax	2.800
Provisions and contingencies	0
Profit After Tax	(66.80)
Extraordinary Items	0
Prior Period Expenses	0
Other Adjustments	0
Net Profit	(66.80)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.61	7.56	10.09
Net Profit Margin (PBT/Sales)	(%)	3.57	8.85	12.03
Return on Total Assets (PBT/Total Assets}	(%)	0.97	2.77	6.13
Return on Investment (ROI) (PBT/Networth)		1.27	3.28	5.84
Debt Equity Ratio (Total Liability/Networth)		0.36	0.21	0.18
Current Ratio (Current Asset/Current Liability)		5.27	4.08	4.14

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FINANCIAL RESULTS

The ageing dredgers and their prolonged layups continued to effect the operations of the Company during the year. The operational income for the year is Rs. 4916.582 Millions as compared to Rs. 5071.415 Millions for the previous year. The other income is Rs. 129.247 Millions as compared to Rs. 155.833 Millions for the previous year.

The total income for the year is Rs. 5045.829 Millions as compared to Rs. 5227.248 Millions for the previous year.

Profit after tax is Rs. 131.810 Millions as compared to Rs. 395.147 Millions for the previous year.

The Company's earnings per share for 2011-2012 is Rs. 0.471 Million compared to Rs. 1.411Millions for the previous year.

DCI FLEET

As on 31st March 2012, the company has among others, 10 Trailer Suction Hopper Dredgers (TSHD), 3 Cutter Suction Dredgers (CSD) and one Back Hoe Dredger apart from other ancillary crafts. The Craft wise particulars are at Annexure-I

BORROWING POWERS

A proposal for increasing the borrowing powers of the company to Rs. 25000.000 Millions to facilitate borrowings for meeting the CAPEX plans is submitted for approval of the members as special business along with the required explanatory statement thereof. It is recommended that the members accord approval to the proposal.

DREDGING OPERATIONS

The company is catering to the dredging requirements of the Haldi/Kolkata Port almost for the past thirty years. The company also caters to the maintenance dredging requirements to other major ports, Indian Navy etc. The company is taking up capital dredging assignments also depending on the availability of the vessels and other logistic requirements. During the year under review, maintenance dredging contracts were executed for Kolkata Port, Karwar Port, Mormugao Port, new sand trap and its approaches for Visakhapatnam Port Trust, Naval Channel at Ernakulam, channels and basins at Cochin Port. The capital dredging work is being executed at Ennore Port. The above works were executed either under the existing contracts or renewal of the contracts entered into with the Ports etc, during the previous years or new contracts entered into during the year. The capacity utilisation during the year is 90% of the available capacity.

INDIAN DREDGING - OUTLOOK & POLICY GUIDELINES

India has an extensive coastline of approximately 7500 kilometers. There are 13 major ports under the administrative control of the Ministry of Shipping, approximately 180 non-major ports under the administrative control of the Government of India (GOI), State Governments and private ports. As per the report of the working group for Ports Sector for 12th plan, a total quantity of 675.25 MCM and 429.99 MCM had been planned for capital and maintenance dredging respectively for all the ports in the country. This quantity includes the dredging to be done for fishing harbours also besides the major and non major ports. Against this targeted plan, only 278.93 MCM and 291.63 CM had been achieved under the capital and maintenance dredging respectively. This constitutes 41.31% and 67.82% against the targeted quantity. The major ports achieved 31.97% of the targeted quantity, the non-major ports achievement was 49.55% in capital dredging work. In maintenance dredging work, the figures are 68.89% and 59.92% respectively. The shortfall in achieving the set target is due to many factors. Delay or failure to takeoff number of port development projects, financial and environmental constraints, the need to carry out engineering studies to assess the quantum of dredging and the type of dredging to be performed, poor response from bidders to undertake the work are some of the reasons attributable to the shortfall. Overall, the ports had done better in achieving the target in maintenance dredging. The non major ports had done better than the major ports in capital dredging work.

Dredging requirement for 12th Plan period

The capital dredging requirements for major ports during the 12th plan period stem from the various port projects planned by the major ports. Ports of Kolkata, Paradip, Visakhapatnam, Ennore, Chennai, Tuticorin, Mormugao, Jawaharlal Nehru and Kandla are planning to undertake the capital dredging of quantities more than 10 MCM. The capital dredging quantities in respect of other major ports are less than 10 MCM. The total quantity planned is 221.11 MCM of all the 12 major ports including the requirement for Navy. The projection for maintenance dredging at Major Ports is 404.25 MCM. In total the requirement is 625.36 MCM which is almost at the same level when (92.5%) compared with 676.34 MCM projected for the major ports during 11th Five Year plan. The non major ports have projected a total requirement of 543.61 MCM of which 418.03 MCM is for capital dredging and 128.58 MCM is for maintenance dredging. When compared with the projection of 368.59 MCM and 46.41 MCM respectively for capital and maintenance dredging during 11th Five year plan, there is an increase of nearly 31%. Capital dredging requirement of the State of Orissa, Andhra Pradesh and Gujarat constitute 57.8% of total capital dredging due to development of Gopalpur and Dhamra ports is Orissa, development of Machilipatnam, Krishnapatnam, Kakinada and Gangavaram ports in Andhra Pradesh, and development of Hazira port in Gujarat state

The 12th plan dredging requirements, if achieved, will enable all the Major Ports (except Kolkata) and non-Major

Ports to handle the vessels with 14 meters draft at the end of 12th plan period. In case transloading facilities installed at sandheads by Kolkata Port, then Kolkata Port can also handle 14 m draft vessels.

The Ministry during the year formulated the Maritime Agenda 2020 which is the perspective plan of the Ministry for this decade. It identifies the priority areas for Government intervention and is a road map for creation and upgradation of infrastructure in the Ports and also for augmentation of Indian tonnage in the shipping sector. The document says that Shipping lines have been representing time and again that port charges at Indian Ports are very high as compared to other comparable International Ports. As a matter of fact, vessel related charges are perhaps higher than some of the International Ports whereas cargo related charges are much lower in some Indian Ports in comparison to ports abroad. The document says that if Vessel related charges alone are taken, the reasons for higher charges are mainly two: (1) higher cost of dredging in certain ports, requiring perennial dredging and (2) lack of subsidy on the part of Government. In many parts of the world, some part of dredging (at least Capital) is funded by Provincial Governments or Federal Governments. If the same approach is adopted by Central Government or State Governments, the vessel related charges also could be brought to the reasonable levels. The document says that Major Ports in India have drawn up some ambitious expansion plans during the next decade including several dredging major dredging projects by some ports, thereby intending to create substantial additional capacity. The dredging projects are mainly for deepening of channels, enhancing the available the available draft at berths or for construction of more berths.

The existing dredging policy guidelines issued by Ministry of Shipping are as under:

1. All major ports shall invite open competitive bids for dredging works and Indian companies owning Indian flag dredgers, including Dredging Corporation of India (DCI) shall have the right of first refusal if the rate is within 10% of the lowest valid offer. This would apply to both maintenance and capital dredging works with sole exception of the maintenance dredging requirement of Kolkata Port for which separate instructions shall apply.

2. If more than one company owning Indian flag dredger participates in the tender, the right of first refusal will go to that Indian company which has quoted the lowest rate and is within 10% of the lowest valid offer

3. All major ports may strictly adhere to the guidelines issued by the Central Vigilance Commission from time to time for processing the tenders in a transparent manner. Ports may ensure that a prequalification criteria is fixed in advance and should not be very stringent to restrict entry of certain potential Indian bidders. The prequalification conditions should be exhaustive, yet specific. The prescribed conditions should be clearly specified in the bid documents to ensure fair competition and transparency. Detailed instructions in this regard will be issued separately.

4. The Government of India through Department of Shipping reserves the right to assign, in public interest, any contract for dredging work in any of the major ports to DCI on nomination.

5. Guidelines issued by DG (Shipping), Mumbai from time to time in terms of the relevant provisions of Merchant Shipping Act shall be applicable.

With the entry of global players either directly or through their Indian arms competing to get the contracts at competitive rates has constrained DCI to quote competitively. This has put the financials of the Company under severe strain because of increasing cost due to frequent repairs and lay-up of the ageing dredgers.

INDIAN DREDGING MARKET OUTLOOK

While the consistent maintenance dredging requirements at the major ports are expected to continue, increasing private sector participation in port development and related capital dredging activity is expected. At the same time, the dynamics in the Indian market are rapidly changing. The key changes taking place include changes in b customer profile for dredging companies from Government to private sector developers, changes in payment patterns for dredging work with stringent performance parameters the expansion of Indian port capacity and increasing participation of international companies in the Indian dredging market. Other developments include:

1. Deeper draught requirements of Indian Ports.

2. Tourism development and increasing need for beach nourishment.

3. Land reclamation for low lying areas

DCI's customers include Major Ports under the administrative control of the Ministry of Shipping, Non-Major Ports under the administrative control of the Government of India and State Governments, private ports, the Indian Navy and shipyards. The Indian dredging market is primarily maintenance dredging-oriented. However, some capital dredging projects are also in the offing. DCI has already secured the Ennore capital dredging project on tender basis.

PLAN PROJECTIONS

The following are the Plan projections for the 12th Plan:-

· Two Nos. New TSHDs of 9000 Cu.M In line with DCI's strategy to augment its available capacity, it is proposed to acquire 2 Nos New TSHDs of 9000 Cu.M capacity at an estimated cost of Rs. 13000.000 Millions placement of order for one dredger will be in the mid of the 12^th Five Year Plan and order for the second dredger will be placed in the final year of the 12th Five Year Plan.

· Tow Nos. Self-Propelled Barges:-

It is proposed to procure two hopper barges at an estimated cost of about Rs. 900.000 Millions for transport of material dredged by Back-Hoe Dredger

· Retrofit of Dredgers:

In order to optimize and enhance the productive life and upkeep of the dredgers, it is proposed to take midlife retrofit of three existing dredgers at an estimated cost of about Rs. 3000.00 Millions.

· Procurement of Multi Cat and 50 Ton BP Tug at an estimated cost of about Rs. 600.000 Millions

CONTINGENT LIABILITIES:

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Letters of Credit	5.549	14.531
Claims made against the Company not acknowledged as debts	530.015	427.250
Estimated amount of contracts remaining to be executed on capital account and not provided for	10737.719	13685.418
Income Tax Demands received but disputed by the Company	157.710	109.812

BRIEF PROFILE OF THE DIRECTORS APPOINTED FROM 1/4/11 TILL DATE OF REPORT.

Shri P.Jayapal:- He is a Master Mariner (Foreign going) and is a "Charge Hydrographic Surveyor" from the Indian Navy. Prior to joining this organization, he served in Indian Navy as Commodore in the Embarkation Head Quarters - Chennai. He has wide experience in Hydrographic and Ocean surveys and Harbour Management, Hydrographic Training, Dredging and Harbour Maintenance etc.

Shri S. Balachandran:- He is an expert in financial management, planning, capital budgeting, financial appraisal.

He has 35 years of experience in Railways and on deputation outside in Corporate and other Government Sectors. He held various senior positions in Ministry of Railways including Railway Board Member. He was Managing Director, IRFC. He also held Directorship in Boards of three companies viz., Railtel Corproation, Pipavav Rail Corporation and Karnataka Rail Infrastructure Development Enterprise. He was also an independent Director on the Board of ONGC. He is presently independent director on the Boards of PTC Energy Limited., PTC India Limited., ONGC Petroadditions Limited

Shri Vinai Kumar Agarwal :- He is a Science Graduate and holds Bachelor Degree in Engineering (Civil) from IIT Roorkee. Sri Agarwal served in various capacities in Ministry of Railways. He also served M/s RITES Limited, he has extensive exposure in African countries where RITES operated as Chairman of Board of Directors of the two subsidiaries created in Mozambique and Tanzania with 51% share and rest 49% with the Governments of those two countries. These companies operated the rail network of these countries. He is also an independent Director in KIOCL Limited.

Capt. D. K. Mohanty:- He is a Master (FG) and has wide experience in shipping and port related sectors spanning over more than 30 years. Previously he worked as Director (Marine Services) in Ennore Port Limited and Deputy Conservator in Paradip Port Trust

Shri M.C. Jauhari:- He joined Ministry of Shipping as Joint Secretary (Shipping) in January, 2012. He has worked in the State Government of Assam in various capacities and also as Joint DG/Director in DGFT in Commerce and Industry Ministry, Govt. of India, New Delhi. He has worked as adviser in the Indian Mission to European Union. He has got experience in land revenue administration, labour and employment, town and country planning, science and technology, foreign trade, agriculture & co-operation, Personnel & General administration, Planning and Programme implementation etc., He is presently Govt. Director on the Boards of Shipping Corporation of India Limited., and Cochin Shipyard Limited.

FIXED ASSETS

· Land - Free Hold

· Buildings

· Plant and Machinery

· Dredgers

· Ancillary Crafts

· Pipeline, Ball

· Sockets Joints

· Other Operational Assets

· Furniture

· Fittings

· Equipments

· Motor Vehicles

· Computers

UN-AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH LUNE.2012

(Rs. In Millions)

		3 Months ended 30.06.2012
	Particular	Unaudited
PART-1
1	Income from Operations
	(a) Net Income from Core Dredging Operations	1279.000
	(b) Other Operating Income	13.700
	Total Income from Operations ( Net)	1292.700
2	Expenses:
	a) Cost of materials consumed	N.A.
	b)Purchases of Stock-in-Trade	N.A.
	c) Changes in inventories of finished goods work-in-progress and Stock-in-Trade	N.A.
	d) Employee benefits expense	201.200
	e) Depreciation and amortization expense	221.000
	f) Repairs and Maintenance ( Vessels)	171.500
	g) Fuel and Lubricants	478.000
	h) Spares and Stores	199.000
	i) Other expenses	93.000
	Total expenses	1363.700
3	Profit /Loss from Operations before other income , finance costs and exceptional items (1-2)	(71.000)
4	Other Income	7.000
5	Profit /Loss from ordinary activities before finance costs and exceptional items (3 + 4)	(64.000)
6	Finance costs	000
7	Profit /Loss from ordinary activities after finance costs and exceptional items (5-6)	(64.000)
8	Exceptional Items	000
9	Profit(+)/ Loss(-) from Ordinary Activities before tax (7-8)	(64.000)
10	Tax Expense	2.800
11	Net Profit(+)/ Loss(-) from Ordinary Activities after tax (9-10)	(66.800)
12	Extraordinary Items(net of tax expense ( ?Nil)	000
13	Net Profit(+)/ Loss(-) for the period (11-12)	(66.800)
14	Share of profit/loss of associates	-
15	Minority interest	-
16	Net profit/ loss after taxes, minority interest and share of profit /loss of associates	-
17	Paid-up equity share capital (Face Value of the share: ( ?10 )	280.000
18	Reserves excluding Revaluation Reserves as per Balance sheet of Previous Accounting Year	-
19.i	Earnings per Share ( before extraordinary items) (of ? 10 each ) Not to be annualised
	(a) Basic	Rs. (2.39)
	(b) diluted	Rs. (2.39)
19.ii	Earnings per Share ( after extraordinary items) (of ? 10 each ) Not to be annualised
	(a) Basic	Rs. (2.39)
	(b) diluted	Rs. (2.39)

(Rs. In Millions)

		3 Months ended 30.06.2012
	Particular	Unaudited
PART-II
A	Particulars of share holding
1	Public Shareholding: No.of shares	60,02,300
	Percentage of shareholding	21.44%
2	Promoters and Promoter group shareholding
	(In the name of President of India)
	a) Pledged/Encumbered
	- No. of Shares	-
	- Percentage of shares (as a percentage of total shareholding of promoter & promoter group)
	- Percentage of shares (as a percentage of total share capital of the Company)
	b) Non-encumbered
	- No. of Shares	21997700
	- Percentage of shares (as a percentage of total shareholding of promoter & promoter group)	100.00%
	- Percentage of shares (as a percentage of total share capital of the Company)	78.56%
B	Number of investor complaints :-
	i) Pending at the beginning of the quarter ended 30th June, 2012 :	0
	ii) Received during the quarter ended 30th June, 2012:	5
	iii) Disposed off during the quarter ended 30th June, 2012:	5
	iv) Lying unresolved as on 30th June, 2012:	0

Note:

1. N.A. = Not applicable since DCI is not a Manufacturing Company

2. Segmental Reporting as per AS-17 issued by the ICAI is not applicable since the company has only one segment income i.e., dredging.

3. The company approached the Ministry for revision of price in respect of Sethusamudram Project and the same is pending

4. The Auditors of the Company have carried out a Limited Review of the aforesaid financial results for the quarter ended 30th June, 2012 in terms of Clause 41 of the Listing Agreement with Stock Exchanges

5. The above financial results were reviewed by the Audit Committee at its meeting held on 13/08/2012 and have taken record by the Board of Directors at its meeting held on 13/08/2012.

6. Figures of the previous years have been re-grouped/ re-classified wherever necessary

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 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 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] Records 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. 53.78
UK Pound	1	Rs. 86.77
Euro	1	Rs. 69.71

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	NO
TOTAL		59

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.