Mar 31, 2016
To,
The Members,
The Directors have pleasure in presenting the 30th Annual Report together with the Audited Statement of Accounts and the Auditors'' Report of your company for the financial year ended, 31st March, 2016.
FINANCIAL HIGHLIGHTS
Particulars |
2015-16 |
2014-15 |
Revenue From Operation |
97,850,134 |
92,840,496 |
Other Income |
1,554,593 |
- |
Profit For the year before Tax and Exceptional / Extraordinary Item |
36,927,793 |
34,329,038 |
Exceptional Items |
- |
5,377,336 |
Profit For the year before Tax |
36,927,793 |
39,706,374 |
Provision for Taxation |
||
Current Tax |
10,938,590 |
10,417,000 |
Deferred Tax |
1,600,648 |
4,197,555 |
Profit After Tax |
24,388,556 |
25,091,820 |
Profit brought forward from Previous Year |
54,148,039 |
34,238,923 |
Profit available for Appropriation |
78,536,595 |
59,330,743 |
Less: Appropriations |
||
Transferred to General Reserve |
- |
2,509,000 |
Proposed Dividend (Including Tax) |
- |
1,232,150 |
Interim Dividend (Including Tax) |
1,489,975 |
1,441,554 |
Profit Carried to Balance Sheet |
77,046,620 |
54,148,039 |
STATE OF COMPANY AFFAIRS:
This year has seen a drop in crude oil prices from a high of USD 110 per barrel to a low of USD 30 per barrel. These fluctuating fortunes have severely impacted the oil and gas industry. New projects of several oil and gas majors have been put on hold or postponed. However your company has managed to sustain its self in these testing conditions.
This is a true testament to the professional approach of the management and the flexibility of our company to juggle between near shore work and our contacts in the offshore oil and gas industry.
In these trying times we have continued to show growth with an increase in turn over from INR 9.2 cr to INR 9.7 cr. Your company has now established its self and is qualified to do niche jobs in the oil and gas sector. We are now gearing up to take our expertise global, with the induction of certain key management professionals. This has affected our profitability temporarily but is sure to pay dividends in the future.
Being in the niche business and specializing in the marine security business your company continues to plan and expand its fleet in the coming financial year.
The company is also on the brink of getting several prestigious contracts and will continue to strive towards positive growth as we have regularly being doing.
CHANGE OF BUSINESS IF ANY:
Your company continues to dominate the marine security business in India and is also looking to expand further into the oil and gas market with Anchor handling tugs and Platform supply vessels. Over this financial year we have also opened a fleet maintenance unit which has seen a good performance.
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCTION AND PROTECTION FUND
Since Section 205A of the Companies Act, 1956 as amended from time to time and/or relevant corresponding provisions of the Companies Act, 2013 once notified, mandates that companies transfer dividend that has been unclaimed for a period of seven years from unpaid dividend account to the ''''Investor Education and Protection Fund (IEPF)''''. In accordance with the with the provisions company will transfer the amount of unpaid dividend to IEPF timely.
MATERIAL CHANGES AND COMMITMENTS
The particulars as required under the provisions of Section 134(3)(l), no changes have occurred which have affected the financial position of the company occurred between 31st March 2016 and the date of Board''s Report.
EXTRACT OF ANNUAL RETURN
The Extract of Annual Return as required under section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014, in Form MGT-9 is annexed herewith for your kind perusal and information.
MEETINGS OF THE BOARD OF DIRECTORS
During the Financial Year 2015-16, the Company held 4 board meetings of the Board of Directors as per Section 173 of Companies Act, 2013 which is summarized below. The provisions of Companies Act, 2013 and listing agreement were adhered to while considering the time gap between two meetings.
S No. |
Date of Meeting |
Board Strength |
No. of Directors Present |
1 |
28th May 2015 |
100% |
5 |
2 |
30th July 2015 |
100% |
5 |
3 |
14th November, 2015 |
100% |
5 |
4 |
15th January, 2016 |
100% |
5 |
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies Act, 2013 the Board of Directors of the Company confirms that-
a. In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.
b. The directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period.
c. The directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.
d. The directors have prepared the annual accounts on a going concern basis; and
e. The directors, in the case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
AUDITORS
M/s D. B. Ketkar & Co., Chartered Accountants, were appointed as Statutory Auditors for the F.Y 2015 â 2016 in the Extra Ordinary General Meeting held on 2nd May, 2016, and their continuance of appointment and payment of remuneration are to be confirmed and approved in the ensuing Annual General Meeting.
Note: Above details may be suitably modified based on the following event.
1. Information about change of Auditor, if any during the year may be included.
2. Information about the proposal of the shareholders for appointment of new Auditors.
3. Rotation of Auditors in respect of certain classes of Companies.
There are no qualifications or adverse remarks in the Auditors Report which require any clarification/ explanation. The Notes on financial statements are self-explanatory, and needs no further explanation.
Further the Auditors'' Report for the financial year ended, 31st March, 2016 is annexed herewith for your kind perusal and information.
LOANS, GUARANTEES AND INVESTMENTS
There were no loans, guarantees or investments made by the Company under Section 186 of the Companies Act, 2013 during the year under review and hence the said provision is not applicable
RELATED PARTY TRANSACTIONS
There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the
Sr. No. |
Name |
Designation |
1 |
Mr. Avik G. Duke |
Chairman & Managing Director |
2 |
Mr. Shaival Trivedi |
Executive Director & CFO |
3 |
Mrs. Harshika Kataria |
Independent Woman Director |
4 |
Mr. Pramod Patekar |
Independent Director |
5 |
Adv Sujay N. Kanatawala |
Independent Director |
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:
(A) Conservation of energy and Technology absorption
The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 in respect of conservation of energy and technology absorption have not been furnished considering the nature of activities undertaken by the company during the year under review.
(a) Conservation of energy:
Steps taken / impact on conservation of energy, with special reference to the following:
(i) Steps taken by the company for utilizing alternate sources of energy including waste generated-our company has put into affect a fuel saving scheme on all vessels. This minimizes our carbon foot print and helps protect our environment. Your company has also made efforts to recycle waste on board all vessels.
(ii) Capital investment on energy conservation equipment- There has been no capital investment for the same.
(b) Technology absorption:
1. Your company has been actively involved in new technology absorption and is gearing up to meet global standards.
2. Benefits derived as a result of the above efforts, has been considerable fuel savings which have benefitted our clients and the environment.
(c) Foreign exchange earnings and Outgo
31st March 2016 |
31st March 2015 |
|
Type of Income |
Rs. |
Rs. |
Marine & Offshore Income |
65,901,970 |
61,124,032 |
Total |
65,901,970 |
61,124,032 |
Type of Expenses |
31st March 2016 |
31st March 2015 |
a. Foreign Travelling |
285,564 |
695,489 |
b. Import of Spares for Marine Vessels |
12,450,521 |
- |
Total |
12,736,085 |
695,489 |
RISK MANAGEMENT:
The price of crude oil declined significantly this year. Forecasts predict an upward trend in the coming years. To mitigate this risk your company continues to concentrate on near shore and harbor activity to offset the slowdown in the oil and gas industry.
With an increase in fleet strength mechanical failures can hinder income. Your company continues to improve it''s maintenance ability and focus on a NIL downtime performance as it has done last year.
DIRECTORS and KMP :
Remuneration to the Key Management Personnel (KMP)
Sr. No. |
Name |
Designation |
For the year ended 31st March, 2016 |
For the year ended 31st March, 2015 |
1 |
Mr. Avik G. Duke |
Chairman & Managing Director |
2,700,000 |
3,570,000 |
2 |
Mr. Shaival Trivedi |
Executive Director & CFO |
1,360,218 |
- |
3 |
Mr. Suresh Pawar |
Director |
720,000 |
780,000 |
Total |
4,780,218 |
4,350,000 |
DEPOSITS/PUBLIC DEPOSITS
The company has not accepted any deposits during the year.
CORPORATE SOCIAL RESPONSIBILITY
As per Section 135(5) of the Companies Act, 2013 and Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and schedule VII of the Companies Act, 2013, the company has duly constituted CSR Committee. The committee has decided the activities to be undertaken by the company and the expenditures to be incurred on the same and recommended the same to the board therefore the board approved the CSR policy.
ANNUAL EVALUATION
Pursuant to the provisions of the Companies Act, 2013, the Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration and Compliance Committees.
A structured questionnaire was prepared after taking into consideration inputs received from the Directors, covering various aspects of the Board''s functioning such as adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance.
A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders etc. The performance evaluation of the Independent Directors was carried out by the entire Board. The performance evaluation of the Chairman and the Non Independent Directors was carried out by the Independent Directors who also reviewed the performance of the Secretarial Department.
INDEPENDENT DIRECTORS and DECLARATION
The Board of Directors of the Company hereby confirms that all the Independent directors duly appointed by the Company have given the declaration and they meet the criteria of independence as provided under section 149(6) of the Companies Act, 2013.
S. No |
Name |
Designation |
Date of appointment |
Date of cessation |
Mode of Cessation |
1 |
Adv Sujay Nitin Kantawala |
Independent Director |
25/09/2014 |
N.A |
N.A |
2. |
Ms. Harshika S. Katariya |
Independent Woman Director |
23/03/2015 |
N.A |
N.A |
3. |
Mr. Pramod Patekar |
Independent Director |
07/12/2004 |
N.A |
N.A |
REMUNERATION POLICY - Remuneration to Executive Directors:
The remuneration paid to Executive Directors is recommended by the Nomination and Remuneration Committee and approved by Board in Board meeting, subject to the subsequent approval of the shareholders at the General Meeting and such other authorities, as may be required. The remuneration is decided after considering various factors such as qualification, experience, performance, responsibilities shouldered, industry standards as well as financial position of the Company.
Any director who is in receipt of any commission from the company and who is a managing director or whole time director of the company shall not be disqualified from receiving any remuneration or commission from any holding company or subsidiary company of such company .(section 197 (14))
Remuneration to Non Executive Directors:
No remuneration has been paid to Non-executive Directors of the company during the year.
The company shall disclose the number of shares and convertible instruments held by non-executive Directors.
VIGIL MECHANISM
As per Section 177(9) and (10) of the Companies Act, 2013, and as per the Clause 49 of the Listing Agreement, the company has established Vigil Mechanism for directors and employees to report genuine concerns and made provisions for direct access to the chairperson of the Audit Committee. Company has formulated the present policy for establishing the vigil mechanism/ Whistle Blower Policy to safeguard the interest of its stakeholders, Directors and employees, to freely communicate and address to the Company their genuine concerns in relation to any illegal or unethical practice being carried out in the Company.
DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS
Your Company has a well-established framework of internal operational and financial controls, including suitable monitoring procedures systems which are adequate for the nature of its business and size of the operations.
CORPORATE GOVERNANCE REPORT :
Your Company is committed to maintain the highest standards of corporate governance and adhere to the corporate governance requirements set out by SEBI.
The Report on corporate governance as stipulated under clause 49 of the Listing Agreement forms the part of the Annual Report The requisite certificate from the Practicing Company Secretary confirming the completion of condition on Corporate Governance.
MANAGEMENT''S DISCUSSIONS AND ANALYSIS:
1. Industry Trends and Developments
The year 2015-16 has been a slow year for global oil and gas market. There is an increasing requirement for specialized offshore vessels globally for surveillance for transportation of men and materials through water ways and for vessels for security purpose and this trend will continue to grow.
Your Companyâs range of professional services are vessel management and marine logistics, charter of Fast interceptor Craft and allied marine services for surveillance. Your company also provides dredging support services and is looking to expand itâs fleet of vessels.
2. The year in perspective:
Your Company has made remarkable progress with ongoing projects in chartering the Fast Interceptors Crafts/Vessels for guarding the offshore boarders and for transportation of men and materials through water ways and is planning to expand the same by entering into contract with other Companies apart from Government for provided support service vessels for patrolling. Your company is now providing services to some of the most prestigious multi nationals in the world.
3. Future Prospects & Outlook:
The Management of the Company are optimistic about future growth prospects and working towards new project, facilities expansion and most importantly, understanding the changing customers preference and demands and fostering long term profitable relationship with Customer.
4. Business Risks and Management''s assessments -
The fall of crude oil prices has affected all oil and gas support companies; however, your company has quickly diversified into near shore activities to mitigate this risk. The flexibility of your company was put to the test this year and we have managed to come out unscathed.
Availability of financial resources:
The Company expects a substantial increase in revenue by way of additional contracts. However these contracts will require heavy investment for procurement of vessels and offshore assets and have tenure for fixed period. Your company has started the process of approaching itâs banker IDBI for additional funds to procure newer vessels.
5. Human Resources and Industrial Relations -
The Board wishes to express its deep appreciation to all employees in your Company for their contributions to your Company during the year. Harmonious relations continued to prevail in the organization, strengthening the well-established traditions of fairness in dealings and commitment to the future growth of employees through sustained growth of your company.
Financial Condition and Operational Performance
6.1 Share Capital
The Company has at present only one class of shares. The authorized share capital is 52,28,000 Equity shares of Rs. 10/- each, constituting to Rs. 50,280,000/-.There was no increase in the paid up capital of Rs. 49286000/- during the year under review. outstanding at the year end to 49,783,000 equity shares of Rs.10/- each.
6.2. Fixed Assets
During the year 2015-2016 the Company has added I NR 14,75,668/- to the gross block of assets.
6.3. Net Worth
The Net Worth for the year ended March 31, 2016 is INR 135,747,620/-. compared to the Net worth of INR 112,849,039/-. for the same period last year registering overall improvement in the Net Worth.
6.4. Revenues
In the year under review the total revenue of the Company was INR 99,404,727/- compared to INR 92,840,496/- for the same period in the previous year. The increase in revenue ensures companies expansion.
The revenue has been increased by 7.07% as compared to previous year.
6.5. Operating Profit (EBIDT)
The Company earned operating profit of INR 44,626,185/- (P.Y. INR 48,540,114/- ) representing 43.67% (P.Y 52.28% ) of gross revenue, which is due to comparatively increase in direct expenses and other expenses.
6.6 Internal Control Systems and their adequacy -
The Company has adequate internal control systems in place. With a view to monitor the Company''s performance as well as to make sure that internal checks and controls are operating properly, the Company has system of checking the adequacy of its internal control.
ACKNOWLEDGEMENT
Your Directors wish to express their grateful appreciation to the continued co-operation received from the Banks, Government Authorities, Customers, Vendors and Shareholders during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the committed service of the Executives, staff and Workers of the Company.
By the order of the Board For
DUKE OFFSHORE LIMITED
SD/-
Avik George Duke
Place : Mumbai Managing Director
Date : 30.05.2016 DIN: 02613056
Mar 31, 2015
Dear Members,
The Directors take pleasure in presenting the Twenty Ninth Annual
Report together with the Audited Balance Sheet as at 31 March, 2015 and
the Statement of Profit & Loss for the year ended 31 st March ,2015.
FINANCIAL RESULTS:
Particulars 2014-15 2013-14
Rs. Rs.
Revenue From Operation 92,840,496 65,635,522
Other Income - 4,181,650
Profit For the year before Tax 34,329,038 29,189,174
and Exceptional /
Extra Ordinery Item
Exceptional Items 5,377,336 (428,788)
Profit For the year before Tax 39,706,374 28,760,386
Provision for Taxation
Current Tax 10,417,000 9,916,500
Deferred Tax 4,197,555 (186,702)
Profit After Tax 25,091,820 19,030,588
Profit brought forward from 34,238,923 17,111,335
Previous year
Profit available for 59,330,743 36,141,923
Appropriation
Less: Appropriations
Transferred to General Reserve 2,509,000 1,903,000
Proposed Dividend (Including Tax) 1,232,150 -
Interim Dividend (Including Tax) 1,441,554 -
Profit Carried to Balance Sheet 54,148,039 34,238,923
The company proposes to transfer an amount of INR 25,09,000/- to the
General Reserves. An amount of INR 5,41,48,039 is proposed to be
retained in the statement of Profit & Loss.
STATE OF COMPANY'S AFFAIRS:
Your Directors place on record that the company has registered a
remarkable performance over the previous year, and will try its best to
increase the growth percentage with same efficiency.
There is remarkable increment in turnover of the Company. The Profit
before tax for the year was INR 3,97,06,374/- (P.Y INR 2,87,60,386/-)
whereas the profit after tax for the year was at INR 2,50,91,820/- (P.Y
INR 1,90,30,588/-), an increase of 32% and 48%, over the previous year.
The Company remains focused to improve its core business and look for
higher market share in the business segments in which it operates.
There is even remarkable increment in the net revenue during the year
from operation of the Company was INR 9,28,40,496/- as against INR
6,98,17,172/- in the current year, registering the growth of 33% over
the previous year. The Management of Company has decided to expand its
core business of providing support service vessels for coastal
surveillance transportation of men and materials through water ways and
patrolling to other Companies apart from Government and accordingly the
Company is in process of buying the new vessels which will generate
substantial revenue to the Company.
DIVIDEND:
The Board of Director of the Company has paid Interim Dividend of Rs.
0.25 (2.5%) (L.Y. Rs. Nil) per Equity shares of Rs. 10/- each of the
Company in the F.Y. 2014-15. The Interim Dividend absorbs Rs.
12,32,150/-, excluding corporate dividend tax.
The Board of Director of the Company has recommended Final Dividend of
Rs. 0.25/- (inclusive of corporate dividend tax) (2.5%) (L.Y. Rs. Nil)
per Equity shares of Rs.10/- each. The Final Dividend will absorbs Rs.
12,32,150/-, including corporate dividend tax.
FIXED DEPOSITS:
The Company has not invited and accepted any Fixed Deposits from the
public within the meaning of with Section 73 and 74 of the Companies
Act, 2013 read with Rule 8(5)(v)&(vi) of the Companies (Accounts)
Rules, 2014, hence disclosure required under above rule not applicable
to the Company.
PARTICULARS OF LOANS. GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186
OF THE COMPANIES ACT. 2013:
There were no loans, guarantees or investments made by the Company
under Section 186 of the Companies Act, 2013 during the year under
review and hence the said provision is not applicable.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:
Your Company has laid down a set of standards, processes and structure
which enables to implement internal financial controls across the
organization and ensure that the same are adequate and operating
effectively.
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION
FUND:
There was unpaid/unclaimed Dividend of Rs. 1,13,923 declared and paid
in Financial Year 2014-15. The company has unpaid/unclaimed dividend of
Rs. 3,17,967/-for past years which are not due for transfer to Investor
Education and Protection fund pursuant to the provisions of Section 125
of the Companies Act, 2013.
MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION
OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH
THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT:
No material changes and commitments affecting the financial position of
the Company occurred between the end of the financial year to which
this financial statements relate on the date of this report
EMPLOYEES STOCK OPTION PLAN:
The Company has not provided any Stock Option Scheme to the employees.
DIRECTORS:
Your Company has 5 Directors consisting of 3 Independent Directors, 2
(Two) Executive Directors including Managing Director as on March
31,2015.
During the current financial yearthe following changes have occurred in
the constitution of directors of the company:
S.No Name Designation Date of Date of Mode of
appointment cessation Cessation
1. SujayNitin Independent 25/09/2014 N.A N.A
Kantawala Director
2. Harshika Independent 23/03/2015 NA NA
Katariya Director
3. Alan Arthur Additional - 25/09/2014 Retirement
James Director
Quadros
DIRECTORS RETIRING BY ROTATION:
In terms of Section 152 of the Companies Act, 2013, Mr. Suresh Pawar
being longest in the office shall retire at the ensuing AGM and being
eligible for re-appointment, offers himself for re-appointment.
The Directors recommended reappointment as proposed in the notice for
the Annual General Meeting.
INDEPENDENT AND NON-INDEPENDENT NON-EXECUTIVE DIRECTORS:
As prescribed under Clause 49 of the Listing Agreement entered with
Stock Exchanges and Section 149(6) of / disclosures received from the
Directors, the following Non-Executive Directors are Independent
Directors:-
1. Mr. Sujay Nitin Kantawala
2. Mr. Pramod Dhoduram Patekar
3. Ms. Harshika Katariya
WOMAN DIRECTOR:
In terms of the provisions of Section 149 of the Companies Act, 2013
and Clause 49 of the Listing Agreement, a company shall have at least
one Woman Director on the Board of the company. Your Company has
appointed as Ms. Harshika Katariya Director on the Board of the Company
w.e.f. 01.04.2015.
MANAGING DIRECTOR:
Mr. Avik George Duke has been serving as the Managing Director of the
Company since 12th April, 2010, with the approval of the shareholders,
from time to time. The Board of Directors of the Company at their
meeting held on 30.07.2015. has approved the re-appointment of Mr. Avik
George Duke as Managing Director subject to the approval of the
shareholders. Accordingly, the approval of shareholders is being sought
forhis re-appointment as Managing Director of the Company fora period
of 5years.
NUMBER OF MEETINGS OF THE BOARD:
Regular meetings of the Board are held to discuss and decide on various
business policies, strategies and other businesses. The schedule of the
Board/Committee meeting to be held in the forthcoming financial year is
being circulated to the Directors in advance to enable them to plan
their schedule for effective participation in the meetings. Due to
business exigencies, certain business decisions are taken by the Board
through circulation from time to time.
During the Financial Year 2014-15, the Company held 4 board meetings of
the Board of Directors as per Section 173 of Companies Act, 2013 which
is summarized below. The provisions of Companies Act, 2013 and listing
agreement were adhered to while considering the time gap between two
meetings.
S No. Date of Meeting Board Strength No. of Directors Present
1 28.05.2014 4 4
2 28.07.2014 4 4
3 31.10.2014 4 4
4 28.01.2015 4 4
COMMITTEES OF THE BOARD:
The Company has several committees which have been established as a
part of the best corporate governance practices and are in compliance
with the requirements of the relevant provisions of applicable laws and
statutes
The Company has following Committees of the Board:
*Audit Committee
*Nomination and Remuneration Committee *Shareholder grievances
committee
The details with respect to the compositions, powers, roles, terms of
reference, etc. of relevant committees are given in details in the
'Report on Corporate Governance' of the Company which forms part of
this Annual Report and attached as Annexure- D.
CORPORATE SOCIAL RESPONSIBILITY:
The company does not meet the criteria of Section 135 of Companies Act,
2013 read with the Companies (Corporate Social Responsibility Policy)
Rules, 2014 so there is no requirement to constitute Corporate Social
Responsibility Committee.
PERFORMANCE EVALUATION OF THE BOARD:
The Nomination and Remuneration Committee at its meeting and the Board
of Directors at its meeting had laid down criteria for performance
evaluation of Directors, Chairperson, Managing Director, Board Level
Committees and Board as a whole and also the evaluation process for the
same.
The statement indicating the manner in which formal annual evaluation
of the Directors, the Board and Board level Committees are given in
detail in the report on Corporate Governance, which forms part of this
Annual Report.
The performances of the members of the Board, the Board level
Committees and the Board as a whole were evaluated at the meeting of
the Committee of Independent Directors and the Board of the Directors.
DIRECTORS RESPONSIBILITY STATEMENT:
Your Directors state that:
a) in the preparation of the annual accounts for the year ended March
31, 2015, the applicable accounting standards read with requirements
set out under Schedule III to the Act, have been followed and there are
no material departures from the same;
b) the Directors have selected such accounting policies and applied
them consistently and made judgements and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at March 31, 2015 and of the profit of the Company
for the year ended on that date;
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
d) That the Directors have prepared the Accounts for the financial year
ended 31 st March, 2015 on a going concern basis.
e) the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and are operating effectively; and
f) the Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are
adequate and operating effectively.
BUSINESS RISK MANAGEMENT:
Pursuant to section 134 (3) (n) of the Companies Act, 2013 & Clause 49
of the listing agreement, the company has constituted a business risk
management committee. The details of the committee and its terms of
reference are set out in the corporate governance report forming part
of the Boards report.
At present the company has not identified any element of risk which may
threaten the existence of the company.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES:
There was no contract or arrangements made with related parties as
defined under Section 188 of the Companies Act, 2013 during the year
under review.
SUBSIDIARY COMPANIES:
The Company does not have any subsidiary.
AUDITORS:
M/s. B. B. Shah & Company, Chartered Accountants, Mumbai were appointed
as Statutory Auditors of your Company at the last Annual General
Meeting held on 25th September, 2014 for a term of five consecutive
years. As per the provisions of Section 139 of the Companies Act, 2013,
the appointment of Auditors is required to be ratified by Members at
every Annual General Meeting.
AUDITOR'S REPORT:
Information and explanations on items contained in the Auditors Report
which might be considered to be "Reservations, Qualifications or
adverse Remarks" is given below:
With regard to non provision of Gratuity payable under the Payment of
Gratuity Act, 1972, which is accounted on its payment pursuant to the
accounting policy followed by the company.
SECRETARIAL AUDITOR:
The Board has appointed M/s. Ravi Kothari & Associates, Practicing
Company Secretary, to conduct Secretarial Audit for the financial year
2014-15. The Secretarial Audit Report for the financial year ended
March 31,2015 is annexed herewith marked as Annexure-A to this Report.
The Secretarial Audit Report does not contain any qualification,
reservation or adverse remark.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
All related party transactions that were entered during the financial
year were in the ordinary course of the business of the Bank and were
on arms length basis. There were no materially significant related
party transactions entered by the Company with promoters, Directors,
Key Managerial Personnel or other persons which may have potential
conflict with the interest of the Company. Considering the nature of
the industry in which the Company operates, transactions with related
parties of the Company are in the ordinary course of business which are
on arm's length basis. Since all related party transactions entered
into by the Company were in the ordinary course of business and were on
an arm's length basis, form AOC-2 is not applicable to the Company.
EMPLOYEE REMUNERATION:
(A) The statement containing particulars of employees as required under
Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 is not applicable to the Company as no Employee of the company was
in receipts of remuneration aggregating to Rs. 60,00,000/- or more for
the year when employed through out the year or Rs. 5,00,000/- per month
when employed for part of the year.
(B) The ratio of the remuneration of each director to the median
employee's remuneration and other details in terms of sub-section 12 of
Section 197 of the Companies Act, 2013 read with Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, are forming part of this report as Annexure -B.
STATUTORY DISCLOSURES:
(1) CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO:
The disclosures to be made under sub-section (3) (m) of Section 134 of
the Companies Act 2013 read with Rule (8)(3) of the Companies
(Accounts) Rules, 2014 by your Bank are explained as under:
Conservation of Energy, Technology, Absorption etc: NIL
Foreign Exchange Earning:
Type of Income 31st March 2015 31st March 2014
Marine & Offshores Income 61,124,032 -
Total 61,124,032 -
Foreign Exchange Outgo:
Type of Expenses 31st March 2015 31st March 2014
a. Foreign Travelling 695,489 828,070
b. Import of Spares for Marine - 3,802,960
Vessels
Total 695,489 4,631,030
(2) No significant and material orders were passed by the regulators or
courts or tribunals impacting the going concern status and company's
operations in future.
EXTRACTS OF ANNUAL RETURN:
Pursuant to sub-section 3(a) of Section 134 and sub-section (3) of
Section 92 of the Companies Act 2013, read with Rule 12 of the
Companies (Management and Administration) Rules, 2014 the extracts of
the Annual Return as at March 31,2015 forms part of this report as
Annexure -C.
COMPLIANCE OF LISTING AGREEMENT:
Your directors are happy to place on record that, the management of the
Company have pursued seriously and sincerely the compliance requirement
of the Bombay Stock Exchange Limited.
CORPORATE GOVERNANCE:
Your Company is committed to maintain the highest standards of
corporate governance and adhere to the corporate governance
requirements set out by SEBI.
The Report on corporate governance as stipulated under clause 49 of the
Listing Agreement forms the part of the Annual Report
The requisite certificate from the Practicing Company Secretary
confirming the completion of condition on Corporate Governance
(Attached herewith)
Financial Condition and Operational Performance
6.1. Share Capital
The Company has at present only one class of shares. The authorized
share capital is 52,50,000 Equity shares of Rs. 10/- each, constituting
to Rs. 50,500,000/-.There was no increase in the paid up capital of Rs.
49,78,300/- during the year under review, outstanding at the year end
to 49,78,300 equity shares of Rs. 10/- each.
6.2. Fixed Assets
During the year 2014-2015 the Company has added INR 520/- Lacs to the
gross block of assets.
6.3. Net Worth
The Net Worth for the year ended March 31,2015 is INR 11,28,49,039/-.
compared to the Net worth of INR 9,04,30,923/-. for the same period
last year registering overall improvement in the Net Worth.
The Net Worth has been increased by 24.79% compared to previous year
26.65 %.
6.4. Revenues
In the year under review the total revenue of the Company was INR
9,28,40,496/- compared to INR 6,98,17,172/- for the same period in the
previous year. The increase in revenue ensures companies expansion.
The revenue has been increased by 33% as compared to previous year.
6.5. Operating Profit (EBIDT)
The Company earned operating profit of INR 4,85,40,114/- (RY. INR
3,97,81,461/-) representing 52.28% (P.Y 56.98%) of gross revenue, which
is due to comparatively increase in direct expenses and other expenses.
6.6. Internal Control Systems and their adequacy
The Company has adequate internal control systems in place. With a view
to monitor the Company's performance as well as to make sure that
internal checks and controls are operating properly, the Company has
system of checking the adequacy of its internal control.
By the order of the Board
For DUKE OFFSHORE LIMITED
SD/-
(Avik George Duke)
Place : Mumbai Managing Director
Date : 28.05.2015 DIN: 02613056
Mar 31, 2014
Dear members,
The Directors take pleasure in presenting the Twenty Eighth Annual
Report together with the Audited Balance Sheet as at 31 March, 2014 and
the Statement of Profit & Loss for the year ended 31st March, 2014.
FINANCIAL RESULTS:
2013-14 2012-13
Particulars Rs. Rs.
Revenue From Operation 65,635,522 56,608,770
Other Income 4,181,650 924,895
Profit For the year before
Tax and Exceptional / 29,189,173 19,128,998
Extra Ordinery Item
Exceptional Items 428.788 (308.244)
Profit For the year before Tax 28,760,386 19,437,242
Provision for Taxation
Current Tax 9,916,500 6,390,000
Deferred Tax (186,702) (82,960)
Profit After Tax 19,030,587 13,130,202
Profit brought forward from
Previous Year 17,111,335 6,726,173
Profit available for Appropriation 36,141,922 19,856,375
Less: Appropriations
Transferred to General Reserve 1,903,000 1,313,000
Proposed Dividend (Including Tax) - 1,432,040
Interim Dividend (Including Tax) - -
Profit Carried to Balance Sheet 34,238,922 17,111,335
REVIEW OF OPERATIONS:
Your Directors are well satisfied that the Company has conducted itself
with the utmost fairness and integrity and believes that its operations
and activities are creating value for stakeholder as well as society.
During the year 2013-2014, the turnover was INR 65,636,522/- as
compared to previous year turnover of INR 56,608,770/-.
INCREASE IN PROFIT
Your Directors place on record that the company has made a pretax
profit of INR 28,760,386/- (P.Y INR 19,437,242/-) whereas the profit
after tax for the year was at INR 19,030,587/- (P.Y INR 13,130,202/-),
an increase of 48% and 45%, over the previous year.
The Company remains focused to improve its core business, remain
competitive and stay on it''s financial growth path.
NET REVENUE
There is even remarkable increment in the net revenue during the year
from operation of the Company from INR. 22,438,368 /- as against INR,
33,389,982/- Cr. in the current year, registering the growth of 49 %
over the previous year.
KEY PERFORMANCE INDICATORS:
* INCREASE IN TURNOVER:- 16%
* INCREASE IN PROFIT:- 53%
* INCREASE IN EARNINGS PER SHARE:- 45%
* INCREASE EBIDTA:- 26%
* INCREASE NET PROFIT:- 45%
DIVIDEND:
In view of the Company''s decision to acquire additional marine craft
and vessel to meet the increases in demand, the Company does not
recommend payment of dividend for the financial year 2013 -2014 however
the company is highly focused on providing it''s shareholders with
consistent EPS.
COMPLIANCE OF LISTING AGREEMENT:
The Company has paid the Annual Listing fees for the year 2013-14 to
the Bombay Stock Exchange, where the Company''s shares are listed.
Your directors are happy to place on record that, the management of the
Company have pursued seriously and sincerely the compliance requirement
of the Bombay Stock Exchange Limited.
FIXED DEPOSITS:
The Company has not invited and accepted any Fixed Deposits from the
public within the meaning of Section 58A of the Companies Act, 1956, As
at March 31, 2014.
DIRECTORS:
Mr. Suresh S. Pawar, Director, retires by rotation and being eligible,
offers himself for re appointment at the ensuing, Annual General
Meeting. Mr Suresh Pawar has been a director on the Board of Duke
Offshore Limited for a period of 12 years.
The Directors recommended reappointment as proposed in the notice for
the Annual General Meeting.
Cmde. Alan Quadros, Director, retires due to age and health
restrictions. The Company thanks Cmde. Alan Quadros for the valuable
service rendered to the company.
PARTICULARS OF EMPLOYEES:
No Employee of the company was in receipts of remuneration aggregating
to Rs. 60,00,000/- or more for the year when employed throughout the
year or Rs. 5,00,000/- per month when employed for part of the year.
CONSERVATION OF ENERGY. TECHNOLOGY. ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO:
The information as required under the provision of Section 217 (1) (e)
of the Companies Act,1956 read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 are as
follows:
Foreign Exchange Earning : NIL
Foreign Exchange Outgo:
Type of Expenses 31st March 2014 31 st March 2013
Rs. Rs.
a. Foreign Traveling 828,070 212,564
b. Import of Spares for
Marine Vessels 3,802,960 2,912,259
c. Reimbursement of Under
Water Course Fees - 812,014
Total 4,631,030 3,936,837
* The increase in expenditure is mainly due to procurement of a high
speed vessel from abroad. Management, technical staff and a crew of 12
was sent to inspect, purchase and bring the vessel to India.
DIRECTORS RESPONSIBILITY SATEMENT:
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect of the Director''s responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the annual Account for the financial year
31st March, 2014, the applicable accounting standards read with
requirements set out under Schedule VI to the Companies Act, 1956, have
been followed along with proper explanation relating to material
departures.
ii) That the Directors have selected such accounting policies and
applied them consistently and made judgment and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affair of the company as at March 31, 2014 and of the profit of the
company for the year under review.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities; and
iv) That the Directors have prepared the accounts for the financial
year ended 31st March, 2014 on an ongoing concern basis.
CORPORATE GOVERNANCE:
Your Company is committed to maintain standards on good corporate
governance and has taken adequate steps to adhere to all the
stipulation laid down in clause 49 of the Listing Agreement. Report on
Corporate Governance along with the certificate from the Practicing
Company Secretary confirming the completion of condition on Corporate
Governance is attached herewith.
SECRETARIAL COMPLIANCE REPORT:
Pursuant to the provision of Section 383A of the Companies Act, 1956,
read with the Companies (Compliance Certificate) Rules, 2001 a
Secretarial Compliance Report from M/s Arun Dash & Associates,
Practicing Company Secretaries is attached herewith and forming part of
Director Report.
AUDITORS:
The Statutory Auditors of the Company, M/s. B. B. Shah & Company,
Chartered Accountants, Mumbai, retire in accordance with the provisions
of the Companies Act, 1956 and are eligible for re-appointment. The
Board of Directors recommends the re-appointment of M/s. B. B. Shah &
Company, Chartered Accountants, as the Auditors of the Company.
AUDITOR''S REPORT
Information and explanations on items contained in the Auditors Report
which might be considered to be "Reservations, Qualifications or
adverse Remarks" is given below:
With regard to non provision of gratuity payable under the Payment of
Gratuity Act, 1972, which is accounted on its payment pursuant to the
accounting policy followed by the company.
MANAGEMENT''S DISCUSSIONS AND ANALYSIS:
1. Industry Trends and Developments
The year 2013-14 has been a mixed year for global technology market.
There is an increasing requirement for specialized offshore vessels
globally for surveillance for transportation of men and materials
through water ways and for vessels for security purpose and this trend
will continue to grow.
Your Company''s range of professional services are inspection of oil
fields platform & operations, vessel management and marine logistics,
charter of Fast interceptor Craft and allied marine services for
surveillance.
2. The year in perspective
Your Company has made remarkable progress with ongoing projects in
chartering the Fast Interceptors Crafts/Vessels for guarding the
offshore boarders and for transportation of men and materials through
water ways and is planning to expand the same by entering into contract
with other oil and gas majors apart from Government for providing
support services & vessels for patrolling.
Your company is on a pre planned growth path and is well on target.
Your company has in place in house policies of international standards
for HSSE (Health, Safety, Security and Environment), Quality Management
(ISO), Corporate Governance and a clear corporate vision. Your company
is primed for growth.
3. Future Prospects & Outlook
The Management of the Company are highly optimistic about future growth
prospects and working towards new projects, facilities expansion and
most importantly, understanding the changing customers preference and
demands, fostering long term profitable relationships with global
conglomerates, oil and gas majors and the Indian Navy.
The company also plans to foray into a new vertical- FIC and other
marine vessel maintenance.
4. Business Risks and Management''s assessments
Your Company has identified the following risks that may arise:
Availability of financial resources: - The Company expects a
substantial increase in revenue by way of additional contracts. However
these contracts will require heavy investment for procurement of
vessels and offshore assets and have tenure for fixed period.
5. Human Resources and Industrial Relations
The Board wishes to express its deep appreciation to all Management,
employees in your Company for their contributions to your Company
during the year. Harmonious relations continued to prevail in the
organization, strengthening the well-established traditions of fairness
in dealings and commitment to the future growth of employees through
sustained growth of your company.
Financial Condition and Operational Performance
6.1 Share Capital
The Company has at present only one class of shares. The authorized
share capital is 52, 25,000 Equity shares of Rs. 10/- each,
constituting to Rs. 50,250,000/-. Issued, Subscribed and paid-up
capital is Rs. 49,783,000/- after forfeiture of partly paid up equity
share.
6.2. Increase in Fixed Assets
During the year 2013-2014 the Company has added INR 4,083,353/- to the
gross block of assets. The Company is in the process of buying a new
vessel which will reflect in the next year''s balance sheet.
6.3. Increase in Net Worth
The Net Worth for the year ended March 31, 2014 is INR90,430,922/-
approx. compared to the Net worth of INR 71,400,335/- approx, for the
same period last year registering overall improvement in the Net Worth.
The Net Worth has been increased by 26.65% compared to previous year
19.59%.
6.4. Increase in Revenues
In the year under review the total revenue of the Company was INR
69,817,172/- compared to INR 57,533,665/-for the same period in the
previous year. The increase in revenue ensures companies expansion.
The revenue has been increased by 13.75% as compared to previous year.
6.5. Increase in Operating Profit (EBIDT)
The Company earned operating profit of INR. 39,999,815/- (P.Y. INR
31,151,950/-) representing 57.29% (P.Y 54.15%) of gross revenue, which
is due to increase in direct revenue and comparatively decrease in
expenses related to personnel, finance coast and other administrative
expenses.
APPRECIATIONS:
The Board of Directors would like to thank all our clients, class
societies, vendors, suppliers and contractors for their continuing
support.
Special appreciation goes to our dedicated and loyal employees who are
our most important assets.
We would also like to acknowledge the assistance and support of all
local state authorities in the our country.
With gratitude from all of us at Duke Offshore a special vote of thanks
to all the shareholders of the company who have patiently believed in
our abilities, strategies and stood by the company and it''s philosophy.
We believe that with a strong and dynamic management team leading a
passionate workforce we are confident of continuously increasing your
turnover, profitability, assets and eventually creating exceptional
value in your company in the ensuing years to come.
By Order of the board of Director
M/s. Duke Offshore Limited
Sd/-
Place: Mumbai Mr. Avik G.Duke
Dated: 28.05.2014 Chairman & Managing Director
Mar 31, 2013
To The Members,
The Directors take pleasure in presenting the Twenty Seventh Annual
Report together with the Audited Balance Sheet as at 31st March, 2013
and the Statement of Profit & Loss for the year ended 31st March, 2013.
FINANCIAL RESULTS:
2012-13 2011-12
Particulars Rs. Rs.
Revenue From Operation 56,523,548 84,811,846
Other Income 1,010,117 1,128,094
Profit For the year before Tax
and Exceptional / 19,128,998 45,557,167
Extra Ordinery Item
Exceptional Items (308,244) (517,320)
Profit For the year before Tax 19,437,241 46,074,488
Provision for Taxation
Current Tax 6,390,000 13,800,000
Deferred Tax (82,960) 341,136
Profit After Tax 13,130,202 31,933,352
Profit brought forward from
Previous Year 6,726,173 (19,150,098)
Profit available for Appropriation 19,856,375 12,783,253
Less: Appropriations
Transferred to General Reserve 1,313,000 3,193,000
Proposed Dividend (Including Tax) 1,432,040 1,432,040
Interim Dividend (Including Tax) - 1,432,040
Profit Carried to Balance Sheet 17,111,335 6,726,173
REVIEW OF OPERATIONS:
Your Directors are satisfied that the Company has conducted itself with
fairness and integrity and believes that its operations and activities
are creating value for stakeholders as well as for the society.
During the financial year 2012-13, the turnover was of Rs. 5.65 Crores
as opposed to Rs. 8.48 Crores in the previous year.
Your Directors place on record that the company has made a Net profit
before tax of Rs 1.94 Crores, for the current year as against a Net
profit of Rs. 4.61 Crores in the previous period.
Your Company has maintained their existing contracts and also bagged
one more contract for 2 Fast Interceptor Boats.
The management of the Company is exploring various options for
augmenting sustainable revenue stream and for that matter; your Company
has taken up to pursue providing support services for coastal
surveillance and patrolling. The continued cross border security threat
and disturbance from the neighboring countries will result in
compelling demand and wholesome measures by the Government in this
area.
DIVING TRAINING:
Your Company encourages divers to pursue deep diving courses in Mixed
Gas Closed Bell Saturation Diving and Advance Training NDT (CSWIP)
Course in U.K. and France.
Your Directors are confident that the operations of the Company would
further improve in the future years.
DIVIDEND:
The Directors are pleased to recommend a dividend on total paid up
capital, subject to the approval of the members, at the rate of
Rs.0.25/- (2.5%) (Last year Rs. Rs.0.25) per fully paid-up Equity
Shares of Re. 10/- each of the Company for the financial year ended
31st March, 2013. The proposed dividend will absorb Rs. 12,32,150/-
excluding corporate dividend tax. The dividend will be paid to members
whose names appear in the Register of Members. In respect of shares
held in dematerialized form, it will be paid to members whose names are
furnished by National Securities Depository Limited and Central
Depository Services (India) Limited, as beneficial owners as on that
date.
COMPLIANCE OF LISTING AGREEMENT:
The Company has paid the Annual Listing fees for the year 2013-14 to
the Bombay Stock Exchange, where the Company''s shares are listed.
FIXED DEPOSITS:
The Company has not invited and accepted any Fixed Deposits from the
public within the meaning of Section 58A of the Companies Act, 1956, As
at March 31, 2013.
DIRECTORS:
Mr. Avik Duke, Director, retire by rotation and being eligible, offer
himself for reappointment at the ensuing, Annual General Meeting.
The Directors recommended reappointment as proposed in the notice for
the Annual General Meeting.
PARTICULARS OF EMPLOYEES:
No Employee of the company was in receipts of remuneration aggregating
to Rs. 60,00,000/- or more for the year when employed throughout the
year or Rs. 5,00,000/- per month when employed for part of the year.
COMPLIANCE OF LISTING AGREEMENT:
Your directors are happy to place on record that, the management of the
Company have pursued seriously and sincerely the compliance requirement
of the Bombay Stock Exchange Limited.
CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO:
The information as required under the provision of Section 217 (1) (e)
of the Companies Act,1956 read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 are as
follows:
DIRECTORS RESPONSIBILITY SATEMENT:
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect of the Directors'' responsibility Statement, it
is hereby confirmed;
i) That in the preparation of the annual Accounts for the financial
year 31st March, 2013, the applicable accounting standards has been
followed along with proper explanation relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affairs of the company at the end of the financial year and of the
profit of the company for the year under review.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Annual Accounts for the
financial year ended 31st March, 2013 on a going concern basis.
CORPORATE GOVERNANCE:
Your Company is committed to maintain standards on good corporate
governance and has taken adequate steps to adhere to all the
stipulations laid down in clause 49 of the Listing Agreement. Report on
corporate governance along with the certificate from the Practicing
Company Secretary confirming the completion of condition on Corporate
Governance is attached herewith.
SECRETARIAL COMPLIANCE REPORT:
Pursuant to the provisions of Section 383A of the Companies Act, 1956,
read with the Companies (Compliance Certificate) Rules, 2001 a
Secretarial Compliance Report from M/s Arun Dash & Associates,
Practising Company Secretaries is attached herewith and forming part of
this Directors'' Report.
AUDITORS:
The Statutory Auditors of the Company, M/s. B. B. Shah & Company,
Chartered Accountants, Mumbai, retire in accordance with the provisions
of the Companies Act, 1956 and are eligible for re-appointment. The
Board of Directors recommends the re- appointment of M/s. B. B. Shah &
Company, Chartered Accountants, as the Statutory Auditors of the
Company.
AUDITOR''S REPORT:
Information and explanations on items contained in the Auditors Report
which might be considered to be "Reservations, Qualifications or
adverse Remarks" is given below:
With regard to non provision of Gratuity payable under the Payment of
Gratuity Act, 1972, which is accounted on its payment pursuant to the
accounting policy followed by the company.
APPRECIATION:
Your Company has been able to operate efficiently because of the
culture of professionalism, creativity, integrity and continuous
improvement in all functions and areas as well as the efficient
utilization of the Company''s resources for sustainable and profitable
growth.
The Directors wish hereby to place on record their appreciation of the
efficient and loyal services rendered by each and every employee,
without whose whole-hearted efforts, the overall very satisfactory
performance would not have been possible.
Your Directors look forward to the future with confidence.
By Order of the board of Directors
DUKE OFFSHORE LIMITED
Place : Mumbai Mr. Avik Duke
Dated : 30.05.2013 Chairman & Managing Director
Mar 31, 2012
The Directors take pleasure in presenting the Twenty Sixth Annual
Report together with the Audited Balance Sheet as at 31 March, 2012 and
the Profit & Loss account for the year ended 31st March, 2012.
FINANCIAL RESULTS
2011-12 2010-11
Particulars Rs. Rs.
Revenue From Operation 84,811,846 23,658,875
Other Income 1,128,094 1,346,284
Profit For the year
before Tax and
Exceptional/Extra
Ordinary Item 45,557,167 8,595,987
Exceptional Items (517,320) 224,279
Profit For the year
before Tax 46,074,488 8,820,267
Provision for Taxation
Current Tax 13,800,000 1,945,000
Deferred Tax 341,136 655,297
Profit After tax 31,933,352 5,771,411
Profit brought forward
from Previous Year (19,150,098) (24,921,509)
Profit available for
Appropriation 12,783,253 (19,150,098)
Less: Appropriations
Transferred to General
Reserve 3,193,000 -
Proposed Dividend
(Including Tax) 1,432,040 -
Interim Dividend
(Including Tax) 1,432,040 -
Profit Carried to
Balance Sheet 6,726,173 (19,150,098)
REVIEW OF OPERATIONS
The year under review was a transformational year for the Company. The
Company has set new benchmarks in terms of Turnover, Profit, Dividend,
Net Worth and Assets. The turnover for the year during the year was of
Rs. 8.48 Crores as opposed to Rs. 2.36 Crores in the previous year,
thus net increased by 258.48%. Your Directors place on record that the
company has made a Net profit before tax of Rs. 4.61 Crores, for the
current year as against a Net profit of Rs. 0.84 Crores in the previous
period, net increased by 450.36%.
During the year, your Company has acquired 3 more Marine Vessels on
contracts.
Your Company has successfully positioned the Marine Vessels on long
term contracts.
The management of the Company is exploring various options for
augmenting sustainable revenue stream and for that matter, your Company
has taken up to pursue providing support services for coastal
surveillance and patrolling. The continued cross border security threat
and disturbance from the neighboring countries will result in
compelling demand and wholesome measures by the Government in this
area.
DIVING TRAINING
Your Company encourages divers to pursue deep diving courses in Mixed
Gas Closed Bell Saturation Diving and Advance Training in NDT(CSWIP)
Course in U. K. and France.
Your Directors are confident that the operations of the Company could
further improve in the future years.
DIVIDEND
Your Directors have recommended final dividend of Rs. 0.25 (2.5%) (Last
year Rs. NIL) in addition to maiden interim dividend already paid Rs.
0.25 (2.5%) (Last year Rs. NIL) per Equity Share of Rs. 10/- each, for
the financial year ended March 31, 2012, which will result in a total
payout of Rs. 12,32,150/- to shareholders and Rs. 1,99,890/- towards
tax on dividend. The dividend will be paid to members whose names
appear in the Register of Members. In respect of shares held in
dematerialized form, it will be paid to members whose names are
furnished by National Securities Depository Limited and Central
Depository Services (India) Limited, as beneficial owners as on that
date. The dividend payout for the year under review has been formulated
in accordance with shareholders' aspirations and the Company's policy
to pay sustainable dividend linked to long term growth objectives of
the Company to be met by internal cash accruals.
COMPLIANCE OF LISTING AGREEMENT
The Company has paid the Annual Listing fees for the year 2012-13 to
the Bombay Stock Exchange, where the Company's shares are listed.
FORFEITURE OF SHARES
In the view of the requirement under the Companies Act 1956 and as per
provision of Article of Association of Company, if allotment/call money
are in arrears/outstanding for more than 12 months, Equity Shares has
to be forfeited by the Board after giving last and final opportunity to
the defaulting shareholders to repay the allotment/Call money due
alongwith over due Interest. The Company forfeited 99,400 Equity share
on which calls were outstanding vide Board Resolution date 06/06/2011,
including already paid amount on these shares.
FIXED DEPOSITS
The Company has not invited and accepted any Fixed Deposits from the
public within the meaning of Section 58A of the Companies Act, 1956, As
at March 31, 2012.
DIRECTORS
Mr. Suresh Pawar, Director, retires by rotation and being eligible,
offer himself for re-appointment at the ensuing, Annual General
Meeting.
The Directors recommended re-appointment as proposed in the notice for
the Annual General Meeting.
PARTICULARS OF EMPLOYEES
No Employee of the company was in receipts of remuneration aggregating
to Rs. 60,00,000/- or more for the year when employed throughout the
year or Rs. 5,00,000/- per month when employed for part of the year.
COMPLIANCE OF LISTING AGREEMENT
Your directors are happy to place on record that, the management of the
Company have pursued seriously and sincerely the compliance requirement
of the Bombay Stock Exchange Limited.
CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
The information as required under the provision of Section 217 (1) (e)
of the Companies Act,1956 read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 are as
follows:
Foreign Exchange Earning : NIL
Foreign Exchange Outgo:
2011-12 2010-11
Type of Expenses Rs. Rs.
Foreign Traveling 472,044 419,591
Purchases of Assets 57,841,733 33,796,260
Reimbursement of Under
Water Course Fees 4,022,588 3,952,083
Total 62,336,365 38,167,934
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect of the Director's responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the Annual Account for the financial year
31st March, 2012,the applicable accounting standards has been followed
along with proper explanation relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them consistently and made judgment and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affair of the company at the end of the financial year and of the
profit of the company for the year under review.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Accounts for the financial
year ended 31st March, 2012 on a going concern basis.
CORPORATE GOVERNANCE
Your Company is committed to maintain standards on good corporate
governance and has taken adequate steps to adhere to all the
stipulations laid down in clause 49 of the Listing Agreement. Report on
corporate governance along with the certificate from the Practicing
Company Secretary confirming the completion of condition on Corporate
Governance (Attached herewith)
AUDITORS
M/s. B. B. Shah & Company, Chartered Accountants, Mumbai, hold office
as the Statutory Auditors of the Company, until the conclusion of the
ensuing Annual General Meeting and being eligible, are recommended for
re-appointment.
AUDITOR'S REPORT
Information and explanations on items contained in the Auditors Report
Which might be considered to be "Reservations, Qualifications or
adverse Remarks" is given below:
With regard to non provision of Gratuity payable under the Payment of
Gratuity Act, 1972, which is accounted on its payment pursuant to the
accounting policy followed by the company.
ACKNOWLEDGMENT
Your Directors wish to place on record the whole hearted co-operation
the Company has received from its Clients, Bankers, Financial
institutions and the Central and State Government authorities,
shareholders, suppliers and others during the year.
By Order of the board of Director
DUKE OFFSHORE LIMITED
Sd/-
Mr. Avik Duke
Chairman & Managing Director
Place : Mumbai
Dated : 28th May, 2012
Mar 31, 2010
The Directors take pleasure in presenting the Twenty Fourth Annual
Report together with the Audited Balance Sheet as at 31 March, 2010 and
the Profit & Loss account for the year ended 31st March, 2010.
FINANCIAL RESULTS
(Amount in Rs.)
Particulars 2009-10 2008-09
Services Income 22,938,290 63,309,268
Other Income 942,030 1,406,960
Export Sales 1,690,140 -
Profit before Tax 4,339,891 27,276,354
Less: Provision for Taxations
Current Taxation 603,000 3,650,000
Deferred Taxation 62,268 (334,219)
Fringe Benefit Tax - 140,000
Service Tax - 56,242
Profit after Tax 3,674,623 23,764,331
Add: Excess provision for tax 195 -
Add: Profit/(Loss) b/f
from previous year (28,595,938) (52,360,269)
Balance of Loss carried
to Balance Sheet (24,921,510) (28,595,938)
DIVIDEND
The Company is in the process of wiping out the entire amount of losses
of Past years on priority, for this reason and with a view to conserve
the resources; your directors do not recommended payment of any
dividend.
OPERATIONS
The operations of the Company for the financial year under have been
profitable. The Company during the year has focused on the rendering of
Technical Services in terms of Inspection and Survey of offshore oil
field platforms, besides providing specialized training for under water
diving, in association with overseas associates.
Due to the global recession the company management considered it
prudent to exercise caution on operations and conserve financial
resources and only execute contracts where it was certain that our
clients would not default on payments.
The company had decided to enter niche business of Defense, by
undertaking to provide services to the Indian Navy. The company has
acquired one fast interceptor craft and is in the process of acquiring
a second one which will be available to prospective clients for long
term charter. The company expects this to significantly increase the
order book of the ensuing year.
FIXED DEPOSITS
The Company has not accepted any deposits from public.
DIRECTORS
1) Mr. Pramod D. Patekar, the Director of the Company, retire by
rotation on conclusion of this Annual General Meeting and being
eligible, offer himself for re-appointment.
2) Mr. Avik Duke has been appointed as Managing Director of the Company
at the meeting of Board of Directors held on 10th April, 2010 for the
period from 12th April, 2010 to 27.07.2014, subject to approval of the
shareholders at the ensuing Annual General Meeting of the Company.
3) Chairman Emeritus
Mr. George Duke has resigned as a Managing Director of the Company with
effect from 2nd April 2010 and your Directors with a view to have his
continued association with the Company and in appreciation for his
knowledge, experience, expertise and past association with the Company
has appointed him as Chairman Emeritus.
PARTICULARS OF EMPLOYEES
The information required under the provisions of Section 217(2A) of the
Companies Act, 1956, read with Companies (Particulars of Employees)
Rules. 1975 as amended, the names and other particulars of the
employees are set out in the annexure to the Directors report.
COMPLIANCE OF LISTING AGREEMENT
Your Directors are happy to place on record that, the management of the
Company have pursued seriously and sincerely the compliance requirement
of the Bombay Stock Exchange Ltd. and on satisfactory accomplishment of
the same, during the current Financial Year, the suspension of the
Companys Script on the BSE has been revoked by the management of the
BSE vide their letter dated 7th October, 2009 and trading of Companys
shares at BSE has re-started since 14th October, 2009.
CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
The information as required under the provision of Section 217 (1) (e)
of the Companies Act,1956 read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 are as
follows:
Foreign Exchange Earning
Type of Earnings Amount (in Rs.)
Inspection & Survey Fees 22,048,862
Export of Air Diving Chamber 1,690,140
TOTAL 23,739,002
Foreign Exchange Outgoing
Type of Expenses Amount (in Rs.)
Foreign Traveling 5,51,353
Others 10,905
TOTAL 562,258
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect of the Directors responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the Annual Account for the financial year
31st March, 2010, the applicable accounting standards has been followed
along with proper explanation relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them consistently and made judgment and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affair of the company at the end of the financial year and of the
profit of the company for the year under review.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Accounts for the financial
year ended 31st March, 2010 on a going concern basis.
CORPORATE GOVERNANCE
A separate section on Corporate Governance is included in the Annual
Report and the Certificate from the Practicing Company Secretary
confirming the completion of condition on Corporate Governance as
stipulated in revised Clause 49 of the Listing Agreement with the Stock
Exchanges is annexed hereto.
AUDITORS
M/s. B. B. Shah & Company, Chartered Accountants, Mumbai, hold office
as the Statutory Auditors of the Company, until the conclusion of the
ensuing Annual General Meeting and being eligible, are recommended for
re-appointment.
MANAGEMENTS DISCUSSIONS AND ANALYSIS
1. Industry Trends and Developments -
During the year under review, crude oil prices have fluctuated wildly
from approx 48$ a BBL to 78 $ a BBL and the upward trend still
continue.
The sharp upward trend in oil prices was mainly due to the ever
increasing demand for oil by China and India and substantive increase
of the consumption of OIL by most developed countries, the unrest in
oil producing countries like Nigeria, Venezuela, threat of war with
Iran and the unstable conditions in Iraq. These global conditions
fueled the speculative market and combined they held the world to
economic ransom.
Although the high oil prices were not the primary cause of the Global
economic recession, they were the cause of the economic crisis being
brought on earlier and with added vengeance.
As much of your Companys potential business directly or indirectly, is
with Oil majors in India viz. ONGC/GAIL & other oil companies and as
their future development and investment plans have not changed, we
expect the companys future business potential to be increased rather
than reversed.
Your Companys range of professional services are in the field of,
inspection of oil fields platform & operations, diving services, vessel
management and marine logistics, fabrication, process and electrical
engineering, installation and hook up à commissioning of offshore oil
platforms. The Company also has pursued providing of specialized diving
training essential for oil and gas industries in association with
affiliates based in UK.
2. The year in perspective:
Your Company has made significant progress with on going projects in
the oil industry especially on offshore oil platforms and has managed
to wipe out its previous operating losses significantly.
3. Future Prospects & Outlook:
Your Company is continuing with existing contracts and the management
has bid / is bidding for several other contracts which should enable
your Company to substantially increase its turn over and profitability
in the near future.
Your Company has taken up to pursue providing support services for
coastal surveillance and patrolling. The continued cross border
security threat and disturbance from the neighboring countries, will
result in compelling demand and wholesome measures by the Government in
this area.
4. Business Risks and Managements assessments -
Your Company has identified the following risks that may arise:
1. Continuing recessionary trends may significantly affect the oil
industry. If economic stability is not significantly restored and
recessionary trends do not recede, the demand for energy products may
diminish. This could have a major impact on the oil industry and demand
for oil and gas, fall in prices of commodities and oil and manufactured
goods.
2. Competitive companies, especially those companies entering the oil
industry from recessionary hit industries, will create additional low
priced competition in bidding.
3. Availability of financial resources. The Company expects a
substantial increase in revenue by way of additional contracts. However
these contracts may require heavy investment for procurement of assets.
The non availability of adequate funding due to continued recessionary
trends may be a serious cause of concern to meet our projected targets.
5. Human Resources and Industrial Relations -
The Board wishes to express its deep appreciation to all associates and
employees for their contributions to the working of the Company during
the year. Harmonious relations continued to prevail in the
organization, strengthening the well established traditions of fairness
in dealings and commitment to the future growth of associates and
employees.
6. Financial Condition and Operational Performance
6.1 Share Capital
The Company has at present only one class of shares. The authorized
share capital is 50,25,000 Equity shares of Rs. 10/- each, constituting
to Rs. 5,25,00,000/-. There was no increase in the paid up capital of
Rs. 5,02,80,000/- during the year under review.
6.2. Fixed Assets
During the year 2009-2010 the Company has added Rs. 19,51,834 to the
gross block of fixed assets.
6.3. Net Worth
The Net Worth for the year ended March 31, 2010 is Rs. 24,895,750
compared to the Net Worth of Rs. 21,207,322 for the same period last
year registering overall improvement in the Net Worth.
6.4. Revenues
In the year under review the gross revenue of the Company was Rs.
25,570,460 compared to Rs. 64,716,228 for the same period in the
previous year.
6.5. Operating Profit (EBIDTA)
The Company earned as operating profit Rs. 43,39,891/- representing 18%
of gross revenue. Although the employee related costs have gone up, but
the Office and Administration expenses has reduced considerably. The
Company has exercised adequate control on all other expenses to augment
sustainable profitability.
6.6. Developments in Human Resources / Industrial Relations
The success of your company during the preceding year has been driven
by our highly qualified and experienced personnel. Your company
recognizes that the value of our human resources is the key to success
in any organization. It is the endeavor of our HR initiatives to
continually seek association of the best in the industry who are highly
motivated and dedicated personnel. It is also the companys philosophy
to have continues in house training for engineers associated with the
company, prior to their deployment with any project.
ACKNOWLEDGMENT
Your Directors acknowledge with gratitude the assistance, co-operation
and support received by the Company from the Government and various
other agencies and Commercial Banks during the year under review
By Order of the board of Director
DUKE OFFSHORE LIMITED
Sd/-
Place : Mumbai AVIK DUKE
Dated : 30th June, 2010. MANAGING DIRECTOR
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