Home  »  Company  »  Dolphin Offshore Ent  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Dolphin Offshore Enterprises (India) Ltd.

Mar 31, 2015

1 Corporate Information

Dolphin Offshore was incorporated as a Private Limited Company on May 17, 1979 with the objective of providing services to the Offshore Oil and Gas Industry. The Company initially commenced operations by providing diving services to the Oil and Gas Natural Commission (now reconstituted as the Oil and Natural Gas Company Ltd). Over the years, the Company has expanded its capabilities and now provides a range of services as explained below

In 1994, Dolphin Offshore went public and is currently listed on the Bombay Stock Exchange and the National Stock Exchange.

Dolphin Offshore has two wholly owned subsidiaries, Dolphin Offshore Shipping Ltd (hereinafter referred to as DOSL) and Dolphin Offshore Enterprises (Mauritius) Pvt Ltd (hereinafter referred to as DOEMPL). In addition, Dolphin Offshore has entered in a joint venture with IMPaC Offshore Engineering GMBH for providing design and engineering services. DOSL is only involved in the business of owning, operating and managing vessels and in handling marine logistics. DOEMPL, apart from owning vessels, will also provide to the international market the whole range of services that Dolphin Offshore provides.

The current range of services that Dolphin Offshore and subsidiaries provide are :

a. Underwater diving and engineering

b. Design and engineering

c. Vessel operations and management

d. Marine logistics

e. Ship repair and rig repair services

f. Fabrication

g. E&I services

h. Offshore hook-up and commissioning

i. Undertaking turnkey EPC contracts.

2 Change in Accounting Estimate related to depreciation and its impact on financials

To comply with the requirements of the Schedule II of the "Act" the Management has re-estimated useful lives and residual values of all its tangible fixed assets

In respect of assets where the remaining useful life is 'NIL', Rs. 34.98 lacs (net of tax benefits of Rs. 16.81 lacs) being their carrying amount after retaining the residual value as on 1st April, 2014 has been adjusted against the opening balance of retained earnings as on that date. For other assets, additional depreciation charge of Rs. 1,60.17 lacs is adjusted during the current year in the statement of Profit and loss

The impact of additional depreciation charge is likely to hold good for future years also.

3 Disclosure Under AS – 15 (Revised 2005)

Company has adopted the Accounting Standard (AS – 15) (Revised 2005) "Employee Benefits" effective April 01, 2007.

I. Defend Contribution Plans

The Company has classified the various benefits provided to employees as under:

a. Provident Fund

b. Superannuation Fund

c. Employers' Contribution to Employees' State Insurance

d. Employers' Contribution to Employees' Pension Scheme 1995

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the Trustee of the Life Insurance Corporation. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by the Income Tax authorities.

II. Defined Benefit Plans

(a) Contribution to Gratuity Fund (Funded Scheme)

In accordance with the Accounting Standard (AS - 15) (Revised 2005), actuarial valuation was performed by independent actuaries in respect of the aforesaid defined benefit plan based on the following assumptions:

4 Contingent Liabilities:

i) As at March 31, 2015 the Company had contingent liabilities in respect of bank guarantees issued to customers and letter of credit, issued to vendors of Rs. 48,72.31 lacs (2014 - Rs. 58,10.52 lacs). Further, Rs. 54,52.75 lacs (2014 - Rs. 57,57.24 lacs) are outstanding as of date. These bank guarantees are secured by hypothecation to and in favour of the bank of the Company's entire book debts [present and future], outstanding moneys, engagements, securities, investments and rights and further secured by personal guarantee of Whole-time Directors.

ii) Claims against the Company on account of liquidated damages resulting from the extended completion date not acknowledged as debts Rs.11,08.55 lacs (2014 -Rs. 13,47.18 lacs)

iii) The Dy. Commissioner of Income Tax has passed the draft Assessment order for the A. Y 2011-12 with the addition of income of Rs. 11.61 crores & Rs. 7.96 Crores on account of adjustments made by TPO for Interest & Corporate Guarantee . We are in process of filing an appeal with CIT (A).

iv) Income tax demand of Rs. 6,64.98 lacs (2014 - Rs. 6,64.98 lacs), for various assessment year issued by the Income Tax Authorities has been disputed, against which the Company has deposited Rs. 4,95.18 lacs (2014 - Rs. 4,95.18 lacs ) under protest.

Profession tax demand of Rs. 5.24 lacs (2014 - Rs. 5.24 lacs) raised against the Company has been disputed, against which the Company has deposited Rs. 1.35 lacs (2014 - Rs. 1.35 lacs) under protest.

Sales tax demand of Rs. 18,70.99 lacs (2014 - Rs. 18,70.99 lacs) raised against the Company has been disputed.

Management is of the view that above matters are not likely to have any impact on the financial position of the Company.

5 Segment reporting

The Company is mainly engaged in offshore business and there are no separate reportable segments as per Accounting Standard (AS) 17.

6 Related Party Disclosures

Related party transactions cover transactions between the Company and the following persons in accordance with the Accounting Standard 18 notified pursuant to Companies (Accounting standards) Rules, 2006.

1) Related party relationships:

(As identified by the management)

a) Companies under common control, including subsidiaries:

i) Dolphin Offshore Projects Limited - under common control

iii) Global Dolphin Drilling Co Limited - 59.96 % subsidiary

iv) Dolphin Offshore Enterprises (Mauritius) Private Limited - 100.00 % subsidiary

v) Dolphin Offshore Shipping Limited - 100.00 % subsidiary

vi) IMPaC Oil & Gas Engineering (India) Pvt. Limited - 40 % Joint Venture

b) Key Management Personnel

Rear Admiral Kirpal Singh Executive Chairman

Mr. Satpal Singh Managing Director & CEO

Mr. Navpreet Singh Joint Managing Director & CFO

c) Relatives of Key Management Personnel with whom the Company has had transactions during the year.

Mrs. Manjit Kirpal Singh Spouse of Executive Chairman

Mr. Rohan Singh Son of Managing Director & CEO

Mrs. Ritu Singh Spouse of Joint Managing Director & CFO

Mr. Tarun Singh Son of Joint Managing Director & CFO

Mr. Akhil Singh Son of Joint Managing Director & CFO

7 Operating Lease commitments

Disclosure in respect of Operating Lease

The Company has taken on lease various office premises and workshop for the period ranging from 1 to 10 years.

a) The minimum amounts payable in future towards non-cancellable lease agreements for premises are as follows:

b) Lease payments recognised in the statement of Profit & Loss for the period is Rs. 1,38.80 Lacs (2014 - Rs. 1,78.05 lacs)

33 Particulars of Derivative Instruments as at March 31, 2015

a) No derivative instruments are acquired for trading or speculation purposes.

b) Foreign Currency Exposures that are not hedged by derivative instruments or otherwise are

8 Interest in Joint Venture:

The Company has a joint venture interest in IMPaC Oil & Gas Engineering (India) Pvt Limited (a Company incorporated in India) and its proportionate share in the assets, liabilities, income and expenses of the jointly controlled entity, based on the audited accounts drawn up to 31st March 2015 is as under :

Percentage of ownership interest as at 31st March 2015 – 40%

9 Micro, Small and Medium Enterprises (MSMEs) ;

To the extent information is available with the Company; there are no dues payable to any parties identified as Micro and Small Enterprises as per The Micro, Small and Medium Enterprises Development Act, 2006.

10 Debtors and Creditors :

a) Considering the nature of projects being executed by the Company and its main customers, the consequential claims and counter claims towards liquidated damages, change order, etc. as per general practice prevalent in the industry, the balances outstanding as trade receivables (which also include interest charged as per contract terms), billable costs, advances to/balances payables towards contractors and vendors of the company are not confirmed and against some of them the Company has also initiated legal actions. However, the management is confident that such receivables/ payables are stated at their realisable/ payable value and adequate provisions are made in the accounts wherever required.

b) During the year 2009-2010, the Company has taken extra time to complete an EPC contract beyond the scheduled contract completion date as the Company had to execute significant additional work and also on account of delays not attributable to the Company. The potential liability for liquidated damages resulting from the extended completion date amounts to Rs. 11,08.55 lacs (2014 -Rs. 13,47.18 lacs). As the Company believes that the liquidated damages will be waived for the reasons stated above, no provision for the same has been made in the books till date.

c) During the year 2010-2011, the Company has incurred additional expenditure on executing additional work in terms of an EPC contract. The Company has quantified and submitted some of its claims for extra work done and the matter has been referred to the Outside Expert Committee (OEC) for resolution. However, as a matter of abundant caution, only a portion of these extra claims amounting to Rs. 18,98.24 lacs (2014 - Rs. 18,98.24 lacs) has been recognised as revenue. The balance of the additional claims will be recognised as revenue as and when they are accepted by the customer.

d) In respect of another EPC contract, the Company has lodged claims aggregating Rs. 48,01.19 lacs (2014 -Rs. 48,01.19 lacs) of which Rs. 32,01.60 lacs (2014 - Rs.32,01.60 lacs) has been recognized in the books of account. The OEC appointed for resolving these claims has recommended the settlement of the above for Rs. 11,17.06 lacs. The Company has rejected such recommendation of the OEC and it is in the process of referring this matter to arbitration. As a prudent measure, Rs. 20,84.54 lacs being the excess amount over and above the amount recommended by OEC has been written off during the year.

e) The Company has incurred additional expenditure on executing additional work in terms of another EPC contract. Here also, the Company has quantified the value of extra work done at Rs. 1,02,00.76 lacs (2014 - Rs. 91,64.28 lacs) and has commenced discussions with the customer for finalising it. Out of this, invoices for Rs. 23,24.07 lacs (2014 - Rs. 21,85.83 lacs) have been raised on the customer and the balance amount of Rs. 78,76.69 lacs (2014 - Rs. 69,78.45 lacs) accrued on this account is included under other current assets. The recognition of such revenue is subject to acceptance by the customer.

11 Prior year comparatives:

The prior year figures have been reclassified wherever necessary for comparative purpose.


Mar 31, 2013

1 Corporate Information

Dolphin Offshore was incorporated in May as a Private Limited Company on May 17, 1979 with the objective of providing services to the Offshore Oil and Gas Industry. The Company initially commenced operations by providing diving services to the Oil and Natural Gas Commission (now reconstituted as the Oil and Natural Gas Corporation Ltd). Over the years, the Company has expanded its capabilities and now provides a range of services as explained below.

In 1994, Dolphin Offshore went public and is currently listed on the Bombay Stock Exchange and the National Stock Exchange.

Dolphin Offshore has two wholly owned subsidiaries, Dolphin Offshore Shipping Ltd (hereinafter referred to as DOSL) and Dolphin Offshore Enterprises (Mauritius) Pvt Ltd (hereinafter referred to as DOEMPL). In addition, Dolphin Offshore has entered in a joint venture with IMPaC Offshore Engineering GMBH for providing design and engineering services. DOSL is only involved in the business of owning, operating and managing vessels and in handling marine logistics. DOEMPL, apart from owning vessels, will also provide to the international market the whole range of services that Dolphin Offshore provides.

The current range of services that Dolphin Offshore and subsidiaries provide are :

a. Underwater diving and engineering

b. Design and engineering

c. Vessel operations and management

d. Marine logistics

e. Ship repair and rig repair services

f. Fabrication

g. E&l services

h. Offshore hook-up and commissioning

i. Undertaking turnkey EPC contracts.

2 Disclosure Under AS - 15 (Revised 2005)

Company has adopted the Accounting Standard (AS - 15) (Revised 2005) "Employee Benefits” effective April 01, 2007.

I. Defined Contribution Plans

The Company has classified the various benefits provided to employees as under:

a. Provident Fund

b. Superannuation Fund

c. Employers'' Contribution to Employees'' State Insurance

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the Trustee of the Life Insurance Corporation. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by the Income Tax authorities.

3 Contingent Liabilities:

i) As at March 31,2013, the Company had contingent liabilities in respect of bank guarantees, issued to their customers of Rs. 86,04.53 lacs (2012 - Rs. 64,32.61 lacs) of which Rs. 84,13.79 lacs (2012-Rs 64,32.61 lacs) are outstanding as of date. These bank guarantees are secured by hypothecation to and in favour ofthe bank ofthe Company''s entire book debts [present and future], outstanding moneys, engagements, securities, investments and rights and further secured by personal guarantee ofWhole-time Directors.

ii) Capital commitment and guarantees on behalf of subsidiary -

The Company has given a corporate guarantee to the lenders of Dolphin Offshore Enterprises (Mauritius) Private Limited for US$ 25.90 million (2012- US$ 25.90 million).

iii) As at March 31, 2013, the Company has commitment to pay Rs. 50,74.43 lacs (2012 - Rs. 13,07.36 lacs) towards balance amount on account of Open Purchase/Service orders.

iv) The CIT (A) had passed the order in favour of the Company with respect to the Block Period Assessment against which the Department had filled an Appeal with the ITAT, Mumbai. Due to Non - Attendance, the ITAT passed an Exparte Order against the Company on the basis of which, Company received a demand of Rs. 97.02 Lacs. The same has been paid in full & the Company is in the process of filing a restoration petition for restoring the Appeal.

Further to the demand for the Block period, the Company has received penalty order u/s. 158 BFA (2) demanding an amount of Rs. 1,97.17 Lacs. Similarly the Company has paid 50% of the penalty amounting to Rs. 98.59 Lacs in 4 Installments. The Company has already filled an Appeal with the CIA (A) against this penalty order.

During the year, Company has received a Notice of Demand of Rs. 92.53 Lacs for A.Y. 2006-07 on the basis of the order passed by CIA (A) due to disallowance of FCCB Issue Expense. 50% of the demand for A.Y2006-07 amounting to Rs. 46.27 Lacs was paid in 3 equal installments. The Company has already filed an Appeal with the ITAT Mumbai againstA.Y. 2006-07.

During the year, Company has preferred an Appeal with ITAT, Mumbai against the Order of CIA (A) for disallowing Dry Docking Charges for A.Y 2005-06 amounting to Rs. 24.94 Lacs.

The Company on April 18, 2013 has received notice of demand from Deputy Commissioner of Sales Tax for Rs. 1,13.08 lacs and interest thereon Rs. 1,28.62 lacs. The Company is in the process of preferring an appeal against the same.

4 Segment reporting

The Company is mainly engaged in offshore business and there are no separate reportable segments as per Accounting Standard (AS) 17.

5 Related Party Disclosures

Related party transactions cover transactions between the Company and the following persons in accordance with the Accounting Standard 18 notified pursuantto Companies (Accounting Standards) Rules, 2006.

1) Related party relationships

(As identified by the management)

a) Companies under common control, including subsidiaries

i) Dolphin Offshore Projects Limited - under common control

ii) Kanika Shipping Limited - under common control

iii) GlobalDolphinDrillingCoLimited - 59.96% subsidiary

iv) DolphinOffshoreEnterprises(Mauritius)PrivateLimited - 100.00%subsidiary

v) DolphinOffshoreShipping Limited - 100.00%subsidiary

vi) IMPaCOil&GasEngineering(lndia)Pvt. Limited - 40%JointVenture

b) Key Management Personnel

Rear Admiral Kirpal Singh Executive Chairman

Mr. Satpal Singh Managing Director

Mr. Navpreet Singh Joint Managing Director

Vice Admiral H.S. Malhi Whole Time Director (Executive Director Special Project)

(From 14.05.12 to 30.11.12)

c) Relatives of Key Management Personnel with whom the Company has had transactions during the year

Mrs. Manjit Kirpal Singh Spouse of Executive Chairman (Retired on 27.07.12)

Mrs. Prabha Chandran Daughter of Executive Chairman

Mrs. Nitu Singh Spouse of Managing Director

Ms. Rishma Singh Daughter of Managing Director

Mr. Rohan Singh Son of Managing Director

Mrs. Ritu Singh Spouse of Joint Managing Director

Mr. Tarun Singh Son of Joint Managing Director

Mr. Akhil Singh Son of Joint Managing Director

6 Operating Lease commitments -

a) The minimum amounts payable in future towards non-cancellable lease agreements for premises are as follows:

b) Lease payments recognised in the statement of Profit & Loss for the period is Rs. 2,44.73 Lacs (2012 - Rs. 2,04.64 lacs).

7 Particulars of Derivative Instruments as at March 31, 2013

a) No derivative instruments are acquired for trading or speculation purposes.

b) Foreign Currency Exposures that are not hedged by derivative instruments or otherwise are:

8 Interest in Joint Venture

The Company has a joint venture interest in IMPaC Oil & Gas Engineering (India) Pvt Limited (a Company incorporated in India) and its proportionate share in the assets, liabilities, income and expenses ofthe jointly controlled entity, based on the audited accounts drawn up to March 31, 2013 is as under:

9 Micro, Small and Medium Enterprises (MSMEs)

To the extent information is available with the Company, there are no dues payable to any parties identified as Micro, Small

and Medium Enterprises as perThe Micro, Small and Medium Enterprises Development Act, 2006.

10 Debtors and Creditors

a) Considering the nature of projects being executed by the Company and its main client, the consequential claims and counter claims towards liquidated damages, change order, etc., as per general practice prevalent in the industry, the balances outstanding as trade receivables and balances payables towards contractors and vendors of the company are not confirmed. However, the management is confident that such receivables/ payables are stated at their realisable/ payable value and adequate provisions are made in the accounts, wherever required.

b) Sundry debtors includes amount outstanding from a customer amounting to Rs. 25,25.82 lacs (2012 Rs. 25,25.82 lacs). This relates to a subcontract job done during 2006-07 and amount outstanding relates to change order which is still under process of resolution by the ultimate client. Management believes that this amount will be received and hence no provision has been made in the books till date.

c) During the year 2009-2010, the Company has taken extra time to complete two of its EPC contracts beyond the scheduled contract completion date as the Company had to execute significant additional work and also on account of delays not attributable to the Company. The potential liability for liquidated damages resulting from the extended completion date as on March 31, 2013 amounts to Rs. 18,40.10 lacs (2012- Rs. 30,39.76 lacs). As the Company believes that the liquidated damages will be waived for the reasons stated above, no provision for the same has been made in the books till date.

d) During the year 2010-2011, the Company has incurred additional expenditure on executing additional work under its EPC contracts. The Company has quantified and submitted some of its claims for extra work done and has commenced discussions with the clients for finalising the same. However, as a matter of abundant caution, only a portion of these extra claims amounting to Rs. 33,84.45 lacs (2012 - Rs. 33,84.45 lacs) have been recognised as revenue. The balance of the additional claims will be recognised as revenue as and when the same are accepted by the clients.

11 Prior year comparatives

Prior year figures have been reclassified wherever necessary for comparative purpose.


Mar 31, 2012

1 Corporate Information

Dolphin Offshore was incorporated as a Private Limited Company on May 17, 1979 with the objective of providing services to the Offshore Oil and Gas industry. The Company initially commenced operations by providing diving services to the Oil and Gas Natural Commission (now reconstituted as the Oil and Natural Gas Company Ltd). Over the years, the Company has expanded its capabilities and now provides a range of services as explained below.

In 1994, Dolphin Offshore went public and is currently listed on the Bombay Stock Exchange and the National Stock Exchange.

Dolphin Offshore has two wholly owned subsidiaries, Dolphin Offshore Shipping Ltd (hereinafter referred to as DOSL) and Dolphin Offshore Enterprises (Mauritius) Pvt Ltd (hereinafter referred to as DOEMPL). In addition, Dolphin Offshore has entered in a joint venture with IMPaC Offshore Engineering GMBH for providing design and engineering services. DOSL is only involved in the business of owning, operating and managing vessels and in handling marine logistics. DOEMPL, apart from owning vessels, will also provide to the international market the whole range of services that Dolphin Offshore provides.

The current range of services that Dolphin Offshore and subsidiaries provide are :

a. Underwater diving and engineering

b. Design and engineering

c. Vessel operations and management

d. Marine logistics

e. Ship repair and rig repair services

f. Fabrication

g. E&I services

h. Offshore hook-up and commissioning

i. Undertaking turnkey EPC contracts.

a) Terms/rights attached to equity shares

The Company has only one type of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.

During the year 31st Mar 2012, the amount of per share dividend recognized as distribution to equity shareholder was Rs. 1.50

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Disclosure Under AS - 15 (Revised 2005)

Company has adopted the Accounting Standard (AS - 15) (Revised 2005) "Employee Benefits" effective April 01, 2007. I. Defined Contribution Plans

The Company has classified the various benefits provided to employees as under:

a. Provident Fund

b. Superannuation Fund

c. Employer's Contribution to Employees' State Insurance

d. Employer's Contribution to Employees' Pension Scheme 1995

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the Trustee of the Life Insurance Corporation of India. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by the Income Tax authorities.

3 Contingent Liabilities:

i) As at March 31, 2012 the Company had contingent liabilities in respect of bank guarantees, issued to their customers of Rs. 64,32.61 lacs (2011 - Rs. 50,53.78 lacs) of which Rs. 64,32.61 lacs (2011 - Rs. 50,53.78 lacs) are outstanding as of date. These bank guarantees are secured by hypothecation to and in favour of the bank of the Company's entire book debts [present and future], outstanding moneys, engagements, securities, investments and rights and further secured by personal guarantee of Whole-time Directors.

ii) Capital commitment and guarantees on behalf of subsidiary -

The Company has given a corporate guarantee to the lenders of Dolphin Offshore Enterprises (Mauritius) Private Limited for US$ 25.90 million (2011 - US$ 25.90 million).

iii) As at March 31, 2012, the Company has commitment to pay Rs. 13,07.36 lacs (2011 - Rs. 24,82.26 lacs) towards balance amount on account of Open Purchase/Service orders

iv) The Company has appealed the award of the CIT(Appeals) on the block assessment of the Company under Sec. 158BC of Income Tax Act 1961 raising a demand of Rs. 52.97 lacs (2011 - Rs. 52.97 lacs).

During the previous year the Company has preferred an appeal with ITAT, Mumbai against the order of CIT (A) disallowing dry-docking charges for A.Y. 2005-06 amounting to Rs. 24.94 Lacs.

The Company has filed an appeal with the CIT (A) against the order of the Assesing Officer disallowing of FCCB issue expenses for A.Y. 2006-07 amounting to Rs. 2,35.78 lacs for which a demand of Rs. 1,04.88 lacs has been raised.

4 Segment reporting

The Company is mainly engaged in offshore business and there are no separate reportable segments as per Accounting Standard (AS) 17.

Notes

a) Remuneration includes basic salary, allowance, perks and commission.

b) There are no provisions for doubtful debts or amounts written off in respect of debts due to or from related parties.

* Contract revenue includes revenues raised in foreign exchange and paid in Indian rupees which are otherwise considered as having paid for in free foreign exchange by RBI referred to in Para 9.53 (iv) of Foreign Trade Policy 2004-2009.

5 Particulars of Derivative Instruments as at March 31, 2012

a) No derivative instruments are acquired for trading or speculation purposes.

b) Foreign Currency Exposures that are not hedged by derivative instruments or otherwise are:

6 Interest in Joint Venture:

The Company has a joint venture interest in IMPaC Oil & Gas Engineering (India) Pvt Limited (a Company incorporated in India) and its proportionate share in the assets, liabilities, income and expenses of the jointly controlled entity, based on the audited accounts drawn up to 31st March 2012 is as under :

Percentage of ownership interest as at 31st March 2012 - 40%

7 Micro, Small and Medium Enterprises (MSMEs) ;

To the extent information is available with the Company; there are no dues payable to any parties identified as Micro and Small Enterprises as per The Micro, Small and Medium Enterprises Development Act, 2006.

8 Debtors and Creditors :

a) Balances in respect of creditors and debtors are subject to confirmation/reconciliation, wherever required.

b) Sundry debtors includes amount outstanding from a customer amounting to Rs. 25,25.82 lacs. This relates to a subcontract job done during 2006-07 and amount outstanding relates to change order which is still under process of resolution by the ultimate client. Management believes that this amount will be received and hence no provision has been made in the books till date.

c) The Company has taken extra time to complete two of its EPC contracts beyond the scheduled contract completion date as the Company had to execute significant additional work and also on account of delays not attributable to the Company. The potential liability for liquidated damages resulting from the extended completion date as on March 31, 2012 amounts to Rs. 30,39.76 lacs (2011- Rs. 28,30.45 lacs). As the Company believes that the liquidated damages will be waived for the reasons stated above, no provision for the same has been made in the books till date.

d) During the previous year, the Company has incurred additional expenditure on executing additional work under its EPC contracts. The Company has quantified and submitted some of its claims for extra work done and has commenced discussions with the clients for finalising the same. However, as a matter of abundant caution, only a portion of these extra claims amounting to Rs. 33,84.45 lacs (2011 - Rs. 33,59.47 lacs) have been recognised as revenue. The balance of the additional claims will be recognised as revenues as and when the same are accepted by the clients.

9 Prior year comparatives:

As notified by Ministry of Corporate Affairs, Revised Schedule VI under the Companies Act, 1956 is applicable to the Financial Statements for the financial year commencing on or after 1st April, 2011. Accordingly, the financial statements for the year ended March 31, 2012 are prepared in accordance with the Revised Schedule VI. The amounts and disclosures included in the financial statements of the previous year have been reclassified to conform to the requirements of Revised Schedule VI.


Mar 31, 2010

A. Contingent Liabilities:

i) On December 22, 2005, the Company has issued 0.5% Foreign Currency Convertible Bonds which - are due for redemption on December 23, 2010 unless the bond holders exercise their option to convert these bonds into equity shares. As at 31.03.2010, there is an unrealised gain in foreign exchange of Rs.1.44 lacs (2009 - Loss of Rs. 6,97.20 lacs) on value of bonds, while the yield till 31s1 March 2010 is Rs.4,61.08 lacs (2009 - Rs.12,88,05 lacs).

ii) As at March 31, 2010 the Company had contingent liabilities in respect of bank guarantees, issued to their customers of Rs.59,79.13 lacs (2009 - Rs.58,77.57 lacs) of which Rs. 59,11.78 lacs (2009 - Rs. 57,14.03 lacs) are outstanding as of date. These bank guarantees are secured by hypothecation to and in favour of the bank of the Companys entire book debts [present and future], outstanding moneys, engagements, securities, investments and rights and further secured by personal guarantee of Whole-time Directors.

iii) Capital commitment and guarantees on behalf of subsidiary -

The Companys wholly owned subsidiary, Dolphin Offshore Enterprises (Mauritius) Private Limited is currently investing in a ship building programme worth US$ 40 million. This Capital expenditure is being met through unsecured interest free loan of US$ 20 million given by the Company and US$ 20 million from term loans. In addition, the Company has given a corporate guarantee to the lenders of Dolphin Offshore Enterprises (Mauritius) Private Limited for US$ 20 million (2009 - US$ 20 million)

As at March 31, 2010, the Company had already given unsecured loan of US$ 16.11 million (2009- US$ 12.54 million) and the balance will be paid during the future financial years.

iv) The Company has appealed the award of the Income Tax Appellate Tribunal (ITAT) on the block assessment of the Company under Sec.158BC of Income Tax Act 1961 raising a demand of Rs 52.97 lacs (2009 - Rs 52.97 lacs).The appeal filed against the disallowance of shipping reserve for A.Y. 1998-99 to A.Y. 2004-05 has been decided in favour of company.The final notice giving effect to this order is awaited.

During the year the company has referred to the tribunal against the order ofCIT (A) disallowing dry-docking charges for A.Y. 2005-06 amounting to Rs. 24.94 Lacs.

The company has filed an appeal with the CIT(A) against the penalty levied under section 271(1)(c) for A.Y. 1998-99 to A.Y. 2004-05, which was decided in our favour except for the deduction claimed u/s 35D for which the matter has been referred to ITAT. Any laibility arising in respect of the above matter will be booked on completion of the proceedings.

b. Segment reporting:

The Company is mainly engaged in Offshore business and there are no separate reportable segments as per Accounting Standard (AS-17).

c. Related Party Disclosures:

Related party transactions cover transactions between the Company and the following persons in accordance with the Accounting Standard 18 notified pursuant to Companies (Accounting standards) Rules, 2006.

d. Hire Purchase Agreements:

The Company has purchased assets under hire purchase arrangements which are repayable within three years from the dates of agreement. During the year, the Company has paid instalments of Rs. 42.66 lacs (2009 - Rs.47.42 lacs). The Company has a future liability of Rs. 10.90 lacs (2009 - Rs 57.70 lacs) towards the said agreements, of which Rs 10.90 lacs (2009 - Rs. 46.80 lacs) is payable within one year.

e. Micro, Small and Medium Enterprises (MSMEs)

To the extent information is available with the Company, there are no dues payable to any parties identified as Micro, Small or Medium Enterprises as per The Micro, Small and Medium Enterprises Development Act, 2006.

f. Debtors and Creditors

a. Balances in respect of creditors and debtors are subject to confirmation/reconciliation, wherever required.

b. Sundry debtors includes amount outstanding from a customer amounting to Rs. 47.90 crores. This relates to a subcontract job done during 2006-07 and amount outstanding relates to change orders which is still under process of resolution by the ultimate client. Management believes that this amount will be received and hence no provision has been made in the books till date.

c. During the course of execution of its EPC contracts, the Company has undertaken additional work which the Company can invoice only after the contracts have been completed and change orders agreed to by the clients. Due to this reason and other delays not attributable to the Company, the Company expects the liquidated damages of Rs. 23.89 Crores currently leived will be waived by its clients. Accordingly, liquidated damages of Rs. 23.89 Crores have not been provided.

g. Prior year comparatives:

The prior year figures have been reclassified wherever necessary for comparative purposes.

 
Subscribe now to get personal finance updates in your inbox!