Directors Report of Dredging Corporation Of India Ltd.

Mar 31, 2025

Your Directors are pleased to present the 49th Annual Report together with the audited financial statements of the Company for
the year ended 31st March, 2025.

1. FINANCIAL RESULTS

The Company''s financial performance for the year under review along with previous year''s figures is given hereunder:

PARTICULARS	2024-25	2023-24
(I) INCOME
Operations	114213.87	94550.08
Others	583.43	331.90
TOTAL INCOME	114797.30	94880.98
(II) EXPENDITURE
i.) Employees Benefits	10 076.32	9,824.71
ii) Finance costs	3808.70	2,847.51
iii) Depreciation and amortization expense	15159.44	14,082.21
iv) Sub contract Expenses	34816.67	21,101.55
v) Other Expenses	55349.84	43,443.54
TOTAL EXPENDITURE	119210.96	91,229.52
Profit before exceptional items and Tax	-4413.67	3581.46
Exceptional Items	-1805.10	79.42
Profit before Tax	-2608.56	3502.04
Tax Expenses	137.10	183.95
Profit After Tax	-2745.67	3318.08
Basic Earnings per share (in H)	-12.07	11.38
Diluted Earnings per share (in H)	-12.07	11.38

2. ACQUISITION OF NEW DREDGER

As informed in previous year''s Board''s Reports we are happy to give you update on procurement of 12000 m3 TSHD
dredgers by DCI to be constructed at Cochin Shipyard Limited under the Atma Nirbhar Program. The agreement between
Dredging Corporation of India and Cochin Shipyard Limited was signed on 17/03/2022 and tripartite agreement between
DCI-CSL-IHC was signed on 13/04/2022. The Cost of the dredger is 104.59 million EURO''s. The first dredger is targeted for
delivery by 2025 with the second in 2028. The third dredger''s procurement will depend on the performance of the previous
two. The third dredger capacity will be calculated based on a market gap viability analysis in 2030, to meet the dredging
requirements at Indian Major Ports as outlined in the Maritime Vision 2030. All the installments/payments due under the said
agreement in the financial year 2024-2025 were paid by DCI within time limit. The company has been working on this new
market for more than a decade, and this is a significant milestone.

3. CAPACITY UTILIZATION

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

Dredger	Operational Days		Quantity Dredged in LCuM
	Target	Actual	Target	Actual
TSHD VIII	294.00	246.07	113.19	84.15
TSHD XI	223.0	Nil	37.46	Nil
TSHD XII	305.00	209.19	26.06	45.89
TSHD XIV	305.00	316.00	19.52	21.14
TSHD XV	318.00	179.45	73.82	35.45
TSHD XVI	291.00	221.91	65.61	45.31

Dredger	Operational Days		Quantity Dredged in LCuM
	Target	Actual	Target	Actual
TSHD XVII	257.00	200.73	105.39	32.31
TSHD XIX	302.00	270.99	24.05	69.58
TSHD XX	329.00	318.38	126.33	136.30
TSHD XXI	329.00	326.83	30.89	35.51
CSD XVIII	-	-	-	-
Backhoe-I	-	-	-	-
ID Ganga	-	-	-	-
Total	2953.00	2289.79	622.33	505.64

The lower capacity utilization is mainly because of dry-docking and ageing of dredgers.

4. DCI FLEET

The Company has, 10 Trailer Suction Hopper Dredgers (TSHDs), one Cutter Suction Dredger (CSD), one Back Hoe Dredger
and one Inland Cutter Suction Dredger apart from other ancillary crafts. Fleet details are as under:

Craft	Year of Built	Type of Vessel	Max. Dredging Depth (m)	LOA (m)	Dredging Draft (m)	Hopper Capacity (Cu.M)	Pumping Capacity (Cu.M/hr)	Net Tonnage
DCI Dredge VIII	1977	Self-Propelled TSHD	25	124	8.5	6500	-	4437
DCI Dredge XI	1986	Self-Propelled TSHD	25	103	7.5	4500	-	1551
DCI Dredge XII	1990	Self-Propelled TSHD	20	115	6.5	4500	-	1906
DCI Dredge XIV	1991	Self-Propelled TSHD	20	115	6.5	4500	-	1906
DCI Dredge XV	1999	Self-Propelled TSHD	25	122	8.5	7400	-	2421
DCI Dredge XVI	2000	Self-Propelled TSHD	25	122	8.5	7400	-	2414
DCI Dredge XVII	2001	Self-Propelled TSHD	25	122	8.5	740 0	-	2414
DCI Dredge XIX	2012	Self-Propelled TSHD	25	114	6.5	5500	-	2091
DCI Dredge XX	2013	Self-Propelled TSHD	25	114	6.5	5500	-	2091
DCI Dredge XXI	2013	Self-Propelled TSHD	25	114	6.5	5500	-	2091
DCI Dredge-XVIII	2009	Non-propelled CSD	25	88	3	-	2000	607
DCI Dredge-BH1	2011	Non-propelled BH	21.5	55.7	2.5	-	-	293
DCI ID Ganga	2016	Non-propelled ID	14	28.5	1.5	-	500	39
Survey Launch-I	1999	Self-Propelled	-	12.5	1.85	-	-	18 (GT)
Survey Launch-II	2009	Self-Propelled	-	16	1.45	-	-	41 (GT)
Survey Launch-III	2009	Self-Propelled	-	16	1.45	-	-	41 (GT)
DCI Multicat-I	2015	Self-Propelled	NA	32	4	-	-	408 (GT)

5. DREDGING OPERATIONS

A. i) Important contracts completed during the

year: 2024-25

1. Maintenance dredging in the Hooghly Estuary,
primarily in the shipping channel leading to
the Haldia Dock Complex of Syama Prasad
Mookerjee Kolkata (SMPK) for the year 2023-24.

2. Maintenance dredging of approach channel,
entrance channel, turning circle, docks and
sand trap of Paradip Port Authority (PPA) for
the year 2023-24.

3. Capital dredging in the North Dock Complex of
Paradip Port Authority (PPA) for the year 2023-24.

4. Maintenance dredging at New Sand Trap (NST),
its approaches and other areas of Visakhapatnam
Port Authority (VPA) for the year 2023-24.

5. Chartering of DR-XV to M/s. J.P. Offshores for
dredging operations at DGNP, Visakhapatnam.

6. Chartering of DR-XI to M/s. Aurobindo Realty
Infrastructure Pvt. Ltd. for dredging operations
at Ramayapatnam for the year 2023-24.

7. Maintenance dredging of channels and
basins of Cochin Port Authority (CoPA) for
the year 2023-24.

8. Maintenance Dredging of Cochin Shipyard
Limited (CSL) for the year 2023-24.

9. Maintenance dredging of New Mangalore Port
Authority (NMPA) for the Year 2023-24.

10. Maintenance dredging of Mumbai harbor
channel and JN Port channel of Jawaharlal Nehru
Port Authority (JNPA) for the year 2023-24.

B. ii) New Contracts taken up during the year:
2024-25

1. Maintenance dredging in the Hooghly Estuary
primarily in the shipping channel leading
to Haldia Dock Complex of Syama Prasad
Mookerjee Kolkata (SMPK), for a period of five
(5) years for the year 2024-25.

2. Maintenance dredging of approach channel,
entrance channel, turning circle, docks and
sand trap of Paradip Port Authority (PPA) for
the year 2024-25.

3. Capital dredging in the North Dock
Complex of Paradip Port Authority (PPA) for
the year 2024-25.

4. Maintenance dredging at the New Sand Trap
(NST) and its approaches and other areas
of Visakhapatnam Port Authority (VPA) for
the year 2024-25.

5. Chartering of DCI BH-I to M/s. ISDPL for
dredging operations at Rambilli.

6. Dredging for maintenance of channels and
basins of Cochin Port Authority (CoPA) for
the year 2024-25.

7. Maintenance Dredging of Cochin Shipyard
Limited (CSL) for the year 2024-25.

8. Maintenance dredging of New Mangalore Port
Authority (NMPA) for the Year 2024-25.

9. Maintenance dredging of Mumbai harbor
channel and JN Port channel of Jawaharlal Nehru
Port Authority (JNPA) for the year 2024-25.

10. Dredging in the Navigational Channel, Kandla
Creek and alongside Cargo Berths and Oil
Jetties of Deendayal Port Authority (DPA) for
the year 2024-25.

11. Development and maintenance of a fairway
width of 32m and depth of 2.5/2.0m in
Brahmaputra River (NW-2) and in Barak River
for a period of three years for the year 2024-25.

6. SAFETY MANAGEMENT SYSTEM (ISM)

(a) DCI DR-XII, DR-XIV, DR-XV, DR-XVI, DR-XVII, DR-
XIX, DR-XX, DR-XXI (hold valid Safety Management
Certificate (SMC).

(b) DCI Dredge VIII hold valid Indian Coastal Vessel
Safety Certificate.

(c) DCI holds a Document of Compliance (DOC) valid
till 24.06.2027. The same is being endorsed every
year after annual verification audit by DG Shipping.

Ship Security System (ISPS):

(a) DCI DR-XII, DR-XIV, DR-XV, DR-XVI, DR-XVII, DR-XIX,
DR-XX, DR-XXI hold valid International Ship Security
Certificate (ISSC).

(b) DCI Dredge VIII, DCI Dredge XI and DCI Multicat-1
ensure compliance with regard to Ship Security
measures as defined in Annex -11 of the Notification
for Indian Coastal Vessels.

Quality Management System (ISO 9001:2015):

The QMS (Quality Management System) Renewal Audit
was held in March2025 and the audit team recommended
for issuance of certificate. A draft ISO 9001:2015
certificate, valid for next 3 years was issued. The original
certificate is awaited.

Environmental Management System (ISO
14001:2015):

The EMS Renewal Audit was held in March2025 and the
audit team recommended for issue of certificate. A draft
ISO 14001:2015 certificate, valid for next 3 years was
issued. The original certificate is awaited.

Maritime Labour Convention (MLC) -2006

All dredgers of DCI, except dumb vessel DCI Dredge
XVIII, currently hold valid MLC-2006 certificates.

7. MEMBERS/ INVESTOR SERVICES

The shares of the Company are listed on Bombay Stock
Exchange and National Stock Exchange. The shares of
the Company have been delisted from the official list
of Calcutta Stock exchange with effect from March 29,
2025.The shares of the Company are dematerialized
with both the depositories, NSDL and CDSL. M/s.
Alan kit Assignments Limited, Delhi are the R&T Agents
of the Company.

8. CHANGE IN NATURE OF BUSINESS:

The Company has not changed its nature of business
during the relevant financial Year 2024-25.

9. HIGHLIGHTS OF PERFORMANCE OF
SUBSIDIARIES, ASSOCIATES AND JOINTVENTURE
COMPANIES AND THEIR CONTRIBUTION TO THE
OVERALL PERFORMANCE OF THE COMPANY
DURING THE PERIOD UNDER REPORT

The Company did not have any subsidiary, associate and
Joint Venture Company during the FY 2024-2025 and
hence, Consolidated Financial Statement for the Financial
Year has not been prepared.

10. CAPITAL AND DEBT STRUCTURE

A. Any changes in the Capital Structure of the Company
during the year including the following:

i. CHANGES IN SUBSCRIBED, ISSUED, PAID-UP SHARE
CAPITAL:

During the year under review, there is no changes in
subscribed, issued, paid-up share capital -.

ii. CHANGES IN AUTHORIZED SHARE CAPITAL:

During the year Financial Year 2024-25, Company
has not increased Authorized share capital.

iii. RECLASSIFICATION OR SUBDIVISION OF
AUTHORIZED SHARE CAPITAL:

There were no reclassifications or subdivision
of Authorized share capital during the

year under review.

iv. REDUCTION OF SHARE CAPITAL:

There was no Reduction of share capital during the
year under review.

v. BUYBACK OF SHARES:

There was no buyback of share capital during the
year under review.

vi. CHANGES IN CAPITAL STRUCTURE RESULTING
FROM RESTRUCTURING:

There was no restructuring of capital during the
year under review.

vii. CHANGES IN SHARE TRANSFER AND SHARE
TRANSMISSION:

There were no transfer and transmission of securities
during the year under review.

B. ISSUE OF EQUITY SHARES WITH DIFFERENTIAL
RIGHTS:

There was no issue of Equity Shares with Differential
Rights during the year under review.

C. ISSUE OF SWEAT EQUITY SHARES:

There was no issue of Sweat Equity Shares during the
year under review.

D. DETAILS OF EMPLOYEE STOCK OPTIONS:

There were no shares issued under Employee stock
options during the year under review.

E. SHARES HELD IN TRUST FOR THE BENEFIT OF
EMPLOYEES WHERE THE VOTING RIGHTS ARE NOT
EXERCISED DIRECTLY BY THE EMPLOYEES:

There were no shares held in trust for the benefit of
employees where the voting rights are not exercised
directly by the employees during the year under review.

F. ISSUE OF DEBENTURES, BONDS OR ANY NON¬
CONVERTIBLE SECURITIES:

There was no Issue of debentures, bonds or any non¬
convertible Securities during the year under review.

G. ISSUE OF WARRANTS:

There was no Issue of warrants during the
year under review.

H. Securities of the Company are not suspended from
trading during the year under review.

I. During the year under review, statement of deviation in
the use of proceeds from the objects stated in the offer
document or explanatory statement to the notice for the
general meeting for public issue, rights issue, preferential
issue in pursuance to Regulation 32(4) of the SEBI(LODR),
2015 is not applicable on the Company.

PARTICULARS PURSUANT TO SECTION 134 (3) OF
THE COMPANIES ACT 2013 ARE AS UNDER:-

11. The Annual Return pursuant to Section 92 (3) of the
Companies Act, 2013, read with Section 134(3)(a) and
rule 12(1) of the Company (Management & Administration)
Rules, 2014 for the Financial Year ended 31st March 2025
is available on the Company''s website https://dredge-
india.com/files/Mqt7.PDF.

12. N umber of meetings of the Board:- During the financial
year 2024-25, the company has held Six Board Meetings.
Further details are provided in the Corporate Governance
Report. The Company has duly constituted Audit
Committee, Nomination and Remuneration Committee,
Stakeholders Relationship Committee, Corporate
Social Responsibility Committee and Risk Management
Committee and the details of the same including their
Constitution, Number of meetings etc., are included in
the Corporate Governance Report.

13. Directors'' Responsibility Statement:- Pursuant to the
provisions of Section 134(3)(c) & 134 (5) of the Companies
Act, 2013 your Directors state that:

i) in the preparation of the Annual Accounts, the
applicable accounting standards had been
followed along with a proper explanation relating
to material departures;

ii) the Directors had selected such accounting
policies, applied them consistently and made
judgements and estimates that are reasonable and
prudent to present a true and fair view of the state
of affairs of the Company at the end of the financial
year and its profit or loss for that period;

iii) the Directors had taken proper and sufficient
care to maintain adequate accounting records in
accordance with the provisions of the Act, ensuring
the safeguarding of the Company''s assets and for
the prevention and detention of fraud and other
irregularities;

iv) the Directors had prepared the Annual Accounts on
a going concern basis;

v) the Directors, had laid down internal financial
controls to be followed by the Company and that
such internal financial controls are adequate and
operating effectively;

vi) the Directors had devised proper systems to ensure
compliance with the provisions of all applicable
laws and that these systems were adequate and
operating effectively.

14. DETAILS IN RESPECT OF FRAUDS REPORTED BY
AUDITORS UNDER SUB-SECTION (12) OF SECTION
143 OTHER THAN THOSE WHICH ARE REPORTABLE
TO THE CENTRAL GOVERNMENT

No fraud was reported by Auditors to the
Central Government as per section 143(12) of the
Companies Act, 2013.

15. During the year, all the Independent Directors have
met the requirements specified under Section 149(6)
of the Companies Act, 2013 for holding the position of
''Independent Director'' and necessary declaration from
each Independent Director under Section 149 (7) of the
Companies Act, 2013 was received.

16. The Independent directors are paid a sitting fee of
H 20,000/-(Rupees Twenty Thousand Only) for attending
each meeting of the Board or its committees and they
do not receive any other remuneration. Non-Independent
Directors are not paid any remuneration or sitting fees by the
Company. The Company has constituted a Nomination and
Remuneration committee as per Section 178, comprising
three Independent Directors, which consider different
criteria for recommendation of person as directors like
qualifications, positive attributes, independence etc of a
director. Terms and conditions for appointment of Director
is available on website of the company https://www.
dredge-india.com/investors/terms-and-conditions-for-
the-appointment-of-independent-directors. Remuneration
policy is available on website of the company https://www.
dredqe-india.com/investors/remuneration-policv

17. Explanations or comments by the Board on every
qualification, reservation or adverse remark or disclaimer
made.

MANAGEMENT COMMENTS ON STATUTORY
AUDITORS'' REPORT

The chartered accountant firm M/s. Grandhy & Co., Chartered
Accountants, Hyderabad was appointed by the Comptroller
and Auditor General of India as Statutory Auditors for auditing
the accounts of the Company and compliance with applicable
laws, regulations, and accounting standards for the financial
year 2024-25. Pursuant to Section 142 (1) of the Companies
Act, 2013 the remuneration of the Auditors has to be approved
by the Members at the Annual General Meeting (AGM). In the
previous AGM the Board of Directors of the Company was
authorized to fix the fees payable to the Statutory Auditors.
It was recommended to authorize the Board of Directors
of the Company for fixation of remuneration for statutory
auditors for 2025-26.

The Statutory Auditors of the Company have given a report on
the accounts of the Company for the financial year 2024-25.
They have drawn attention under ''Emphasis of Matter'' to the
following notes of the Financial Statements:

A. Note No. 1 relating to management''s assessment that no
impairment of Property, Plant, and Equipment is required
as their recoverable value exceeds the carrying amount
as at the reporting date.

B. Note No. 29(11) relating to outstanding trade receivables
and payables which are subject to confirmation and
reconciliation.

C. Note No. 29(12) relating to restatement of comparative
figures due to prior period items adjusted in
the current year.

The issues have been adequately explained in the respective
Notes referred to by the Auditors.

The Management''s response on the comments in the Statutory Auditors Report is mentioned below: -

Observations of Statutory Auditor

Management''s Response

The ERP system is not periodically tested The Fixed Asset Register has maintained manually in editable excel format and accordingly depreciation is calculated manually which increases the risk of human errors and inconsistency. However, in ERP, the Fixed Asset Register does not report full particulars of assets, such as quantitative details and locations of assets

The point is addressed. During the year, an ERP System audit was carried out by the C&AG. Additionally, the IT department performs periodic testing of the ERP system at regular intervals. Hence, the audit is requested to drop this IFC qualification. With reference to the Fixed Asset Register and depreciation calculation: the base report is available in the ERP system, and all necessary fields are present in the ERP database. However, when generating the Fixed Asset Register, some columns like asset location, useful life, and residual value are not currently displayed. A customization request has been raised with the IT department to include these fields, and it is under development. Hence, the audit is requested to drop this IFC qualification.

Observations of Statutory Auditor

Management''s Response

There is no Periodical reconciliation of trade payable and receivable accounts with proper monitoring and clearing of pending items

As a standard practice, the company sends balance confirmation letters to its trade receivables and trade payables. Approximately 80% of trade payables and receivables were reconciled for the year. However, this matter has already been reported under Emphasis of Matter - Point B in the Audit Report. Therefore, we request that the repetition of the same issue under the IFC (Internal Financial Controls) qualifications be dropped to avoid redundancy

REVIEW OF ACCOUNTS BY COMPTROLLER & AUDITOR GENERAL OF INDIA (C&AG)

Review and comments of the C&AG on financial statements for the FY 2024-25 form part of the financial Statements of the
Company. The Management''s comments on same are being placed with the report of Statutory Auditors of your Company
elsewhere in this Annual Report.

MANAGEMENT COMMENTS ON SECRETARIAL AUDIT REPORT

The "Secretarial Audit Report" from the secretarial auditor in Form MR-3 as required under Section 204 of the Companies Act, 2013
read with rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this report.
The Management''s Response on the qualification in the Secretarial Auditor Report is mentioned below:

Observations	Management''s comments
The Company was not in compliance with the provisions	With the cessation of Capt. S Divakar on 16.04.2024, the
pertaining to Regulation 20(2A) of Securities and Exchange	members of the Stakeholders Relationship Committee
Board of India (Listing Obligations and Disclosure	reduced from Three to Two. During the period from 17.04.2024
Requirements) Regulation, 2015 due to cessation of one of the	to 28.05.2024 Company has not hold any Stakeholders
member of Stakeholders Relationship Committee on April 16,	relationship Committee meeting.
2024. The total members of the said Committee reduced from	It is informed that the Committees were re-constituted in the
three to two. The Stakeholder Relationship Committee was	Board meeting held on 29/05/2024 after the appointment of
reconstituted on May 29, 2024	Shri Durgesh Kumar Dubey as MD & CEO (A/c) of the Company and the committee was re-constituted on 29/05/24. Company has applied for waiver on 23.08.2024
The Company was not in compliance with the provisions	Declarations under sub-regulation 31(4) of SEBI (Substantial
pertaining to Regulation 31 of SEBI (Substantial Acquisition of	Acquisition of Shares and Takeovers)
Shares and Takeovers) Regulations, 2011. (Hereinafter called	Regulations, 2011, for the period ending 31.03.2024 &
Takeovers Regulations, 2011). The declaration required under regulation 31(4) of Takeovers Regulations, 2011 should be made within seven working days from the end of financial year 2023-2024to the audit committee of the company, which was	31.03.2025 were placed at Audit Committee meeting held on 20.05.2025.

18. PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS UNDER SECTION 186

Pursuant to provisions of Section 186 of the Companies
Act, 2013 and the Companies (Accounts) Rules, 2014, the
Company has not made any Investment, given guarantee
and securities during the year under review.

19. CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION &FOREIGN EXCHANGE EARNINGS
AND OUTGO:

The Particulars as described under Section 134(3) (m) of
the Companies Act 2013 read with Companies (Accounts)
Rules 2014 are given in Annexure to this report.

20. RELATED PARTIES TRANSACTIONS

The particulars of contracts or arrangements with related
parties referred to in sub-section (1) of section 188 are
given in form AOC-2 forming part of Board''s Report.

21. TRANSFER TO RESERVES

The details of amount transferred to reserves are
given in note no. 13 of the Notes forming part of the
financial statements.

22. DIVIDEND

Your Directors did not recommend any dividend for the
financial year 2024-25.

23. MATERIAL CHANGES AND COMMITMENTS, IF
ANY, AFFECTING THE FINANCIAL POSITION
OF THE COMPANY WHICH HAVE OCCURRED
BETWEEN THE END OF THE FINANCIAL YEAR
OF THE COMPANY TO WHICH THE FINANCIAL
STATEMENTS RELATE AND THE DATE OF THE
REPORT

There have been no material changes and commitments,
which affect the financial position of the company which
have occurred between the end of the financial year to
which the financial statements relate and the date of this
Report. However, following are the capital commitments
as on 31st March 2025.

24. RISK MANAGEMENT POLICY

Risk Management is the process of identification,
assessment and prioritization of risks followed by
coordinated efforts to minimize, monitor and mitigate/
control the probability and/or impact of unfortunate
events or to maximize the realization of opportunities.
The Company has laid down a comprehensive Risk
Assessment and Minimization Procedure which is
reviewed from time to time. These procedures are
reviewed to ensure that executive management controls
risk through means of a properly defined framework. The
major risks have been identified by the Company and
its mitigation process/measures have been formulated
in the areas such as business, project execution, event,
financial, human, environment and statutory compliance.

25. CORPORATE SOCIAL RESPONSIBILITIES (CSR)

The Company firmly believes that the commitment
towards playing a defining role in the development
of its stakeholders extends to uplifting lives of the
weaker segments of the society living in and around
its areas of operation. The principles of Corporate
Social Responsibility (CSR) are deeply imbibed in your
Company''s corporate culture. The provisions of section
135 towards the Corporate Social Responsibility are
applicable on the Company.

In pursuant to the provisions of Section 135 and Schedule
VII of the Companies Act, 2013, the Board of Directors of
the Company had duly constituted the Corporate Social
Responsibility (CSR) Committee.

The details of the members of the CSR Committee and
the details of the meeting of CSR Committee along
with their attendance held during the year are given in
annexure to Board Report.

Mr. Arun Kumar Gupta has been appointed the Chairman
of the Corporate Social Responsibility Committee.

The Company has a duly approved Corporate Social
Responsibility Policy. A brief outline of the Company''s

CSR policy and a reference to the web - link to the CSR
policy in pursuance to section 134(3)(o) is as follows:

The Corporate Social Responsibility Committee has
been entrusted with the responsibility of recommending
to the Board the activities/projects/programs to be
undertaken by the Company as per its Corporate Social
Responsibility Policy. The terms of reference of the CSR
Committee include the matters specified in Section
135 of the Act. Weblink of the CSR Policy is https://
www.dredge-india.com/left-related-links/corporate-
social-responsiblities

Further, pursuant to Rule 8(1) of the Companies (CSR
Policy) Rules, 2014, an annexure containing the details on
CSR is enclosed with Board Report

26. ANNUAL EVALUATION OF THE PERFORMANCE
OF THE BOARD, ITS COMMITTEES AND OF
INDIVIDUAL DIRECTORS

The Board implemented a formal procedure to assess its
performance, along with its Committees and Individual
Directors, including the Chairman. This evaluation
involved a structured process covering various aspects
of the Board''s functioning, such as composition,
Committee effectiveness, experience, competencies,
fulfilment of specific duties and obligations, contribution
to meetings, and overall governance issues. After the
Independent Directors'' meeting, the Board convened
its meeting to discuss the performance of the Board, its
Committees, and Individual Directors.

The evaluation of Independent Directors was conducted
by the entire Board, excluding the Independent Director
under evaluation.

27. STATEMENT REGARDING OPINION OF THE
BOARD WITH REGARD TO INTEGRITY,
EXPERTISE AND EXPERIENCE (INCLUDING
THE PROFICIENCY) OF THE INDEPENDENT
DIRECTORS APPOINTED DURING THE YEAR

During the Financial Year 2024-2025, no independent
directors were appointed.

28. THE NAMES OF COMPANIES WHICH HAVE
BECOME OR CEASED TO BE ITS SUBSIDIARIES,
JOINT VENTURES OR ASSOCIATE COMPANIES
DURING THE YEAR

During the Financial Year 2024-2025, the Company did
not have any subsidiaries, joint ventures or associate
companies. Hence statement containing salient features
of the financial statement of Subsidiaries/associates
companies/joint venture are not provided in AOC -1.

29. DETAILS RELATING TO DEPOSITS, COVERED
UNDER CHAPTER V OF THE COMPANIES ACT,
2013

The Company does not have any deposits which are
in compliance with the requirements of or are covered
under Chapter V of the Act.

30. DETAILS OF DEPOSITS WHICH ARE NOT IN
COMPLIANCE WITH THE REQUIREMENTS OF
CHAPTER V OF THE ACT

The Company does not have any deposits which are not in
compliance with the requirements of Chapter V of the Act.

31. DETAILS OF SIGNIFICANT AND MATERIAL
ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS IMPACTING THE
GOING CONCERN STATUS AND COMPANY''S
OPERATIONS IN FUTURE

There was no significant and material order passed by
the regulators / court / tribunal during the financial year
against the company which impacts the going concern
status and company''s operations in future.

32. INTERNAL FINANCIAL CONTROL

The Company has in place adequate internal financial
controls with reference to financial statements. During the
year, such controls were tested and no reportable material
weakness in the design or operation was observed.

33. COST AUDITOR AND COST RECORDS

Pursuant to Section 148 of the Companies Act, 2013
read with The Companies (Cost Records and Audit)
Amendment Rules, 2014, appointment of cost auditor
and maintenance of cost audit records is not applicable
on the company for this year.

34. VIGIL MECHANISM

The Company has in place a robust vigil mechanism for
reporting genuine concerns through the Company''s
Whistle-Blower Policy. All cases reported as part of
whistleblower mechanism are taken to their logical
conclusion within a reasonable timeframe. The
Whistle-Blower Policy is available on the Company''s
website at https://www.dredqe-india.com/

35. DETAILS OF APPLICATION MADE OR

PROCEEDING PENDING UNDER INSOLVENCY
AND BANKRUPTCY CODE 2016

No application has been made under the Insolvency
and Bankruptcy Code by your Company. Hence, the
requirement to disclose the details of the application
made or any proceeding pending under the Insolvency
and Bankruptcy Code, 2016 during the year along

with their status as at the end of the financial year is
not applicable.

36. THE DETAILS OF DIFFERENCE BETWEEN
AMOUNT OF THE VALUATION DONE AT THE TIME
OF ONE TIME SETTLEMENT AND THE VALUATION
DONE WHILE TAKING LOAN FROM THE BANKS
OR FINANCIAL INSTITUTIONS ALONG WITH
THE REASONS THEREOF

During the year under review, there has been no
one-time settlement of loans taken from bank and
financial institutions.

37. INSURANCE

The Company has taken appropriate insurance
for its assets.

38. SIGNIFICANT AND MATERIAL ORDERS PASSED
BY REGULATORS OR COURTS or TRIBUNALS

There are no significant and material orders passed
by the Regulators, Courts or Tribunals which would
impact the going concern status and the Company''s
future operations.

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

Pursuant to provisions of Section 197 of the Companies Act,
2013, read with the Rule 5 of Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014,
the names and other particulars of employees along with
the ratio of remuneration of each Director to the median
employee''s remuneration and such other details forms
part of Directors'' Report and is Annexed to this Report.

40. VENDOR DEVELOPMENT

This is a continuous process and DCI procures stores and
services on a regular basis from suppliers spread all over
the world. DCI is updating the supplier-base continually.
DCI has adopted e-procurement and GeM process, as
per Govt. of India guidelines, where emphasis was given
to facilitate and enable the vendors by way of training
support and hand holding support to participate in the
e-procurement processes of the Company. Tenders
are published in DCI official website Central Public
Procurement Portal and GeM portal for wider publicity so
that MSMEs can participate. In view that out of the total
annual procurement, a major portion is fuel, lubes and OEM
spares which cannot be procured from MSME Vendors
and further that since most of dredgers of DCI have been
built at Netherlands and therefore most of the spare
need to be imported from OEMs abroad, the Company
has represented for relaxation for implementation of the
Public Procurement Policy mandatory provision of 20%

procurement from MSMEs. However, DCIL incorporate
the clause in tenders as public procurement policy and
following the same.

41. R&D ACTIVITIES

DCI Dredge Aquarius was fitted with an indigenously
developed Programmable Logic Controller (PLC) in place
of existing PLC system which was imported and giving
frequent problems because of non-availability of spare
parts/ services of the Original Equipment Manufacturer
abroad. The newly installed PLC has been found to be
cost effective and working satisfactorily.

42. CORPORATE GOVERNANCE AND MANAGEMENT
DISCUSSION AND ANALYSIS REPORT

Pursuant to the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 (SEBI (LODR) Regulations, 2015)
Management Discussion and Analysis Report, Corporate
Governance Report, Secretarial Audit Report, and
Certificate from the Company Secretary in practice
regarding compliance of conditions of Corporate

Governance, Certificate of Non-Disqualification of
Directors, Compliance Certificate under Regulation 17(8)
of SEBI (LODR) Regulations, 2015 are attached, forming
part of this Report.

43. MAN POWER:

The total number of employees (both Shore and Floating)
in the Company, as on March 31, 2025 was as under:

Shore (Executives 107 & Non-Executives 59)	166
Floating (Regular 70 & Contract 322)	392
Total	558

Number of employees as on the closure of financial year

Female	32
Male	526
Transgender	0

44. INDUSTRIAL RELATIONS:

The industrial relations in the Companycontinued to be
cordial throughout the year under report.

45. EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

The manpower position with regard to various reserved categories is as indicated hereunder:

A. Employment of SC/ST Candidates

The Companycontinued its efforts to fulfill its obligation in providing employment opportunities to SC/ST candidates, in
accordance with the Government Policy. The overall representation of SC/STs in the Company (both Shore and Floating
Establishments, but excluding MPWs) as on March 31, 2025.

Sl. No.		Total Strength					Prescribed
	Shore Establishment		SC	Percentage	ST	Percentage	Percentage
							SC	ST
1.	Shore Est.	166	33	19.88	10	6.02	16.66	7.5

B. Employment of Ex-Servicemen

The representation of ex-servicemen (shore-based employees) in Group ''C'' and ''D'' categories in the Company was Nil in
both categories, against the Government-prescribed percentage of 14.5% and 24.5%, respectively.

C. EMPLOYMENT OF PHYSICALLY CHALLENGED:

The number of Physically Challenged employees in the Companyas on 31st March , 2025 is 02 (Two). The group-wise break¬
up A, B, C, D Categories in Shore Establishment, is as furnished hereunder :

Sl. No		Group	Total Strength	No. of persons with Disabilities actually Employed	Percentage
(1)		(2)	(3)	(5)	(6)
1.		Group ''A''	107	01	0.93
2.		Group ''B''	31	01	3.23
3.		Group ''C''	22	-
4.		Group ''D''	06	-	-
		Total	166	02	1.20

D. The existing schemes and the policy on WOMEN employees in DCI:

The number of women employees Executives :13

31

on Rolls as on 31.03.2025 Non-Executives :18

46. COMPLIANCE WITH GOVERNMENT''S POLICY ON WOMEN— PREVENTION OF SEXUAL HARASSMENT
COMMITTEE (POSH):

Basing on the Supreme Court''s judgment and keeping in view the Government instructions on sexual harassment of women
at work places, a Complaints Committee/ Internal Committee headed by a woman officer was constituted to inquire into the
complaints of sexual harassment at work places. A complaints register is also being maintained. Training/workshop is also
being conducted for the employees for the purpose. The Company has in place a robust Policy on Prevention, Prohibition
and Redressal of Sexual Harassment of Women at Workplace in line with the requirements of the Sexual Harassment of
Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. The weblink of the policy is - https://www.dredge-
india.com/investors/prevention-of-sexual-harassment-posh-policy

DCI is a Life Member of the Forum for Women in Public Sector and one woman representative from DCI has been nominated
to the above forum. Apart from the Trade Unions, the problems, if any relating particularly to women employees are looked
into as and when the same are brought to the notice of the Management.

The company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual
Harassment of woman at workplace (Prevention, Prohibition and Redressal) Act, 2013.

The Complaints Committee/Internal Committee have following members which are nominated by the employer, namely:

S. No.	Name	Designation	Position in Committee
1.	Smt. Y A Sailaja	Jt. General Manager (HR)	Chairman
2.	Shri A K Das Gupta	Jt. General Manager (HR)	Member
3.	Smt. S Sujatha	Asst. Manager (OL)	Member
4.	Smt. Namala Parvathi Devi	Sr.Hyd. Surveyor	Member
5.	Smt. Lakshmibai	Outside women member of Women Forum from VPA	Member

Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
with respect to FY 2024-25 is as under:

No. of complaints pending at the beginning of the financial year	0
No. of complaints filed during the financial year	0
No. of complaints disposed-off during the financial year	0
No. of complaints pending at the end of the financial year	0
Number of Sexual Harassment Complaints pending beyond 90 days.	0

47 EXISTING BENEFITS AND WELFARE MEASURES
FOR THE WOMEN EMPLOYEES:

a) The women employees of the Company, with less
than two surviving children are entitled for 26 weeks
of Maternity Leave.

b) Special casual leave not exceeding 14 working days
is sanctioned to regular women employees of the
Companyto undergo non-puerperal sterilisation.

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

d) As per the Apex Court judgement and basing on the
Government instructions, a Complaints Committee
headed by a Woman Officer was constituted to inquire
into the complaints of Sexual Harassment at work
places. A Complaints Register is also being maintained.

e) Apart from the Trade Unions, the problems, if any,
relating particularly to women employees are
looked into as and when the same are brought to
the notice of the Management.

f) A Recreation Room has been provided exclusively
for the women employees in the Company.

g) Working uniforms are provided to Group ''D''
employees, as per the scales prescribed in the Rules.

h) Maternity Benefit Act 1961 is implemented
in the Company.

OTHER BENEFITS:

Paternity leave of 15 days is allowed to a regular male employee
having less than two children, during confinement of his wife,
as per Leave Rules of the Company.

48. WAGE SETTLEMENTS:

A. SHORE ESTABLISHMENT:

i) Pay revision of Executive Employees is implemented
w.e.f. 01.01.2017.

ii) The wage revision of Non-Executive employees
in the Shore Establishment is implemented
w.e.f. 01.01.2017.

B. FLOATING ESTABLISHMENT :

i) New Wage Agreements in respect of Officers is due
w.e.f. 01.01.2024.

ii) New Wage Agreements in respect of Floating Petty
Officers is due w.e.f. 01.01.2024.

iii) New Wage Agreements in respect of Floating crew
is due w.e.f. 01.01.2024.

49. WELFARE MEASURES

The Company continued various welfare schemes viz.,
Family Pension Scheme, Gratuity Scheme, Personal
Accident Insurance Coverage, Group Savings Linked
Insurance Scheme, Contributory Provident Fund, Maternity
Leave, Paternity Leave, Payment of ex-gratia to legal heirs/
members of the family of deceased employees, Canteen
for project employees, Medical Attendance, Merit
Scholarships for the children of SC/ST employees, Pension
Scheme and DCI, Retired Employees Medical Trust/
Scheme, family carriage facility for fleet personnel etc.
Other welfare measures such as Special Casual Leave for
maternity/ paternity are also extended to the employees.

50. HUMAN RESOURCES DEVELOPMENT:

The Company is making sincere and concerted efforts
for the overall development of Human Resources. During
the year 2024-25, 164 Executives and 64 Non-Executives
were imparted with various training Programs.

51. IMPLEMENTATION OF THE RIGHT TO
INFORMATION ACT, 2005:

As per the Directives of the Government of India, your
company implemented the Right to Information Act, 2005
w.e.f. 12.10.2005. All necessary infrastructural arrangements
have been made, including the appointment of Public
Information Officers, Asst. Public Information Officers
and Appellate Authority. Additionally, procedures have
been established for the submission of periodic reports
on the Act''s implementation progress. A register is being
maintained for monitoring the requests from public
seeking information and the replies by the concerned are
also being coordinated. Required periodical reports on
the implementation of RTI/ Status of RTI replies are being
furnished to the CIC from time to time.

52. ACTIVITIES OF PUBLIC GRIEVANCES AND
COMPLAINTS CELL:

A Public Grievance Cell has been functioning in the
Company since 1988 to look into the Grievances/
Complaints received from the Public. The Company
Secretary is the officer in charge for Public Grievances.
As per the Ministry''s guidelines, a status report is
being submitted for the information to the Board of
Directors at the Board meetings and a quarterly status
report is forwarded to the Ministry. In line with the
Ministry''s direction, a Public Grievance Redressal and
Monitoring System (PGRAMS) software was installed in
the Computer Network in the Company, which works in
a collaborative ''hand-shake'' mode between the Ministry
and the Company.

53. WELFARE MEASURES PROVIDED FOR THE
EMPLOYEES AND THEIR FAMILY MEMBERS:

The Company continued various welfare schemes viz.,
Family Pension Scheme, Gratuity Scheme, Personal
Accident Insurance Coverage, Group Savings Linked
Insurance Scheme, Contributory Provident Fund,
Maternity Leave, Paternity Leave, Payment of ex-gratia
to legal heirs/members of the family of deceased
employees, Canteen for project employees, Medical
Attendance, , Merit Scholarships for the children of SC/ST
employees, Pension Scheme and DCI, Retired Employees
Medical Trust/Scheme, family carriage facility for fleet
personnel etc. Other welfare measures such as Special
Casual Leave for maternity/ paternity are extended to
the employees.

54. ACTIVITIES AND ACHIEVEMENTS OF VIGILANCE
DEPARTMENT DURING THE YEAR 2024-2025

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

a) The Vigilance Awareness Week (VAW) 2024

The Vigilance Awareness Week 2024 was observed
at the Corporate Headquarters and at various
Regional / Project Offices of Dredging Corporation
of India Ltd. from 28th October 2024 to 03rd
November 2024, under the auspices of Central
Vigilance Commission (CVC) to spread awareness
against corruption. CVC''s theme for the year 2024
was "Culture of Integrity for Nation''s Prosperity"
with emphasis on spreading awareness in fight
against corruption to all sections of Society. In line
with the letter and spirit of the theme and guidelines
of CVC, several activities were organized covering a
wide spectrum of society, with the aim of spreading
awareness and sensitizing the public about ways
and means to fight corrupt practices.

During the VAW-2024, outreach activities were
conducted at schools and colleges like essay writing,
elocution and painting etc. We could achieve this with
the help of support of the print media and social media,
which gave wide publicity to our activities.

2) Preventive Vigilance

As a measure of preventive vigilance, 8 Periodic, 9
Surprise and 4 CTE type inspections have been taken up
during the year. The lapses/ irregularities noticed in this
regard have been communicated for taking remedial/
corrective actions.

3) Systemic Improvements undertaken:

During the year, various Systemic improvement measures
were suggested by the Vigilance Department for
implementation.

i) Technical superintendent shall comply with
Standard Operating Procedure (SOP) for Dry-dock
repair of Dredgers.

ii) Material department to prepare SOP for
handling re-export, re-import of spares for
reconditioning purpose.

iii) To the extent possible indigenise the ship spares
to avoid more dependence on OEMs and to
reduce the cost.

iv) The estimate for the tender to be worked out
in a realistic and objective manner on the basis
of prevailing market rates, last purchase price,
economic indices for the raw material/labour, other
input costs, IEEMA formula wherever applicable and
assessment based on intrinsic value etc.

v) Proper evaluation of tender by TC members - where
there is a difference in tax component quoted by the
various bidders, TC members should evaluate basic
cost of the items i.e., excluding taxes to arrive at
reasonableness of the price quoted by the parties.

4) Training Programs conducted:

As a part of Vigilance Awareness Week campaign,
multiple training programs were conducted to the
employees on following thematic areas.

a) Ethics and Governance

b) Conduct Rules

c) Procurement

d) Systems and Procedures of the Organization

There about 80 employees have attended online / offline
including Projects during training program on GeM
Portal (Procurement).

About 40 employees have attended Training programs
on "Ethics and Governance; Conduct rules; Procurement;
Systems and procedures of the Organization".

55. INFORMATION TECHNOLOGY DEPARTMENT -
ACTIVITIES DURING 2024-25

DEVELOPMENT / IMPROVEMENT IN ERP

• Automation of invoice (E invoice and e way bill)

• Development of project wise Profit and loss report

• Balance sheet

• Corporate profit and loss

• Budget implementation

1. Cyber security enhanced through the installation
of a new Firewall featuring the latest advanced
security features, operating in a high availability
active / passive mode.

2. Vessel connectivity improved by installing an
Omnidirectional antenna and Sim- based router,
improving the speed and availability of internet for
accessing ERP from vessel.

3. Hypack PC upgraded with higher configuration to
support remote access from the Head Office of the
vessel''s Hypack system.

4. New Hardware Procured for implementation of PMS
in the vessel for Users access of PMS Software.

5. New Online Shore recruitment portal revamped and
successfully launched.

56. BUSINESS RESPONSIBILITYAND SUSTAINABILITY
REPORT (BRSR)

The Business Responsibility Report for the year ended
31st March, 2025 as required under the SEBI regulations
is annexed to the Directors Report.

57. VOLUNTARY DELISTING FROM CALCUTTA
STOCK EXCHANGE:

As per the approval of the Board, the Company has
applied for Voluntary Delisting of Shares from Calcutta
Stock Exchange in June, 2020. In response to the
exchange''s request, clarifications were provided and the
delisting certificate was received from the Exchange on
29th March, 2025.

58. DIRECTORS & KEY MANAGERIAL PERSONNEL:

The changes in composition of the Board during the
Financial Year 2024-2025 is given in detail in Corporate
Governance Report. The Directors recommend for
approval of the Members the appointments/re-
appointment of the Directors as proposed in the
Notice to the AGM.

59. COMPLIANCE OF THE SECRETARIAL STANDARDS

Your directors state that proper systems have been
devised to ensure compliance with the applicable laws.
Pursuant to the provisions of Section 118 of the Act,

during FY 2024-25, the Company has generally adhered with the applicable provisions of the Secretarial Standards (SS-1
and SS-2) relating to ''Meetings of the Board of Directors'' and ''General Meetings'' issued by the ICSI and approved by the
Central Government under Section 118 (10) of the Act.

60. ACKNOWLEDGEMENTS:

The Directors thank Hon''ble Minister of State of Ministry of Ports, Shipping and Waterways, its Officers and staff for the
valuable help, assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and
co-operation extended by them. The Board is grateful to the Comptroller & Auditor General of India, the Member, Audit
Board and the Statutory Auditors for their co-operation. The Board also thanks the Bankers of the Company for their valuable
services. The Board expresses its gratitude to the valued customers for their continued patronage. The Directors place on
record their appreciation of the services rendered by all the employees of the Company.

For and on behalf of the Board of Directors

-sd/-

Place : Visakhapatnam Dr.Madhaiyaan Angamuthu, IAS

Date : 13.08.2025

---

Mar 31, 2024

Your Directors are pleased to present this 48th Annual Report together with the audited financial statements of the Company for the year ended March 31, 2024.

1. FINANCIAL RESULTS

PARTICULARS	2023-24	2022-23
(I) INCOME
Operations	94550.08	1,16,501.46
Others	330.90	323.11
TOTAL INCOME	94880.98	1,16,824.57
(II) EXPENDITURE
i) Employees Benefits	9,824.71	9,599.51
ii) Finance costs	2,847.51	2,935.88
iii) Depreciation and amortization expense	14,082.21	14,967.53
iv) Sub contract Expenses	21,101.55	32,194.49
v) Other Expenses	43,193.25	76,619.50
TOTAL EXPENDITURE	91,049.24	1,36,316.91
Profit before exceptional items and Tax	3831.74	(19492.34)
Exceptional Items	79.42	-
Profit before Tax	3752.33	(19492.34)

2. ACQUISITION OF NEW DREDGER

We are happy to inform you that Ministry has accorded approval to the recommendations of the Expert Committee constituted for the purpose of procurement of 12000 m3 TSHD dredgers by DCI to be constructed at Cochin Shipyard Limited under the Atma Nirbhar Programme - first in 2021, second in 2023 and the procurement of the third dredger should be on the basis of analysis of performance of the 2 dredgers. The third dredger capacity shall be determined based on gap viability analysis of the market in 2025 to achieve requirements of dredging at Indian Major Ports as envisaged in the Maritime Vision 2030. The agreement between Dredging Corporation of India and Cochin Shipyard Limited was signed on 17/03/2022 and tripartite agreement between DCI-CSL-IHC was signed on 13/04/2022. The Cost of the dredger is 104.59 million euros.

The first and second instalment was paid on 04/11/2022 and 14/11/2022 respectively. The third, fourth, fifth and sixth instalment was paid on 18/04/2023 ,04/08/2023,13/11/2023 and 08/01/2024 for this year. This is a major milestone in the new market for which the Company was working more than a decade.

3. CAPACITY UTILISATION

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

Dredger	Operational Days		Quantity Dredged in LCUM
	Target	Actual	Target	Actual
TSHD VIII	307.00	304.27	119.38	121.44
TSHD XI	306.00	290.15	49.87	48.83
TSHD XII	184.00	174.23	11.50	10.51
TSHD XIV	200.00	106.00	21.42	7.33
TSHD XV	318.00	301.39	94.22	68.44
TSHD XVI	319.00	283.70	125.95	55.64
TSHD XVII	314.00	227.54	68.45	58.17
TSHD XIX	330.00	315.95	34.21	29.20
TSHD XX	331.00	299.67	129.75	128.21
TSHD XXI	330.00	332.92	34.79	32.46
CSD XXI	246.00	-	-	-
Backhoe-I	246.00	-	-	-
ID Ganga	215.00	-	-	-
Total	3646.00	2635.82	689.52	560.25
% Capacity Utilisation	72.29%		81.25%

4. DCI FLEET

The Company has, 10 Trailer Suction Hopper Dredgers (TSHDs), 1 Cutter Suction Dredger (CSD), one Back Hoe Dredger and one Inland Cutter Suction Dredger apart from other ancillary crafts. Fleet details are as under-

Craft	Year of Built	Type of Vessel	Maximum Depth (m) Dredging	LOA (m)	Dredging Draft (m)	Hopper Capacity (Cu.M)	Pumping Capacity (Cu.M/hr)	Net Tonnage
DCI Dredge VIII	1977	Self-Propelled TSHD	25	124	8.5	6500	-	4437
DCI Dredge XI	1986	Self-Propelled TSHD	25	103	7.5	4500	-	1551
DCI Dredge XII	1990	Self-Propelled TSHD	20	115	6.5	4500	-	1906
DCI Dredge XIV	1991	Self-Propelled TSHD	20	115	6.5	4500	-	1906
DCI Dredge XV	1999	Self-Propelled TSHD	25	122	8.5	740 0	-	2421
DCI Dredge XVI	2000	Self-Propelled TSHD	25	122	8.5	740 0	-	2414
DCI Dredge XVII	2001	Self-Propelled TSHD	25	122	8.5	740 0	-	2414
DCI Dredge XIX	2012	Self-Propelled TSHD	25	114	6.5	5500	-	2091
DCI Dredge XX	2013	Self-Propelled TSHD	25	114	6.5	5500	-	2091
DCI Dredge XXI	2013	Self-Propelled TSHD	25	114	6.5	5500	-	2091
DCI Dredge-XVIII	2009	Non-propelled CSD	25	88	3	-	2000	607
DCI Dredge-BH1	2011	Non-propelled Backhoe	21.5	55.7	2.5	-	-	293
DCI ID Ganga	2016	Non-propelled ID	14	28.5	1.5	-	500	39
Survey Launch-I	1999	Self-Propelled	-	12.5	1.85	-	-	18 (GT)
Survey Launch-II	2009	Self-Propelled	-	16	1.45	-	-	41 (GT)
Survey Launch-III	2009	Self-Propelled	-	16	1.45	-	-	41 (GT)
DCI Multicat-I	2015	Self-Propelled	NA	32	4	-	-	408 (GT)

5. DREDGING OPERATIONS

A. i) Important contracts completed during the

year-

1. Maintenance dredging in the shipping channel leading to Haldia dock complex in the Hooghly estuary.

2. Maintenance dredging of approach channel, entrance channel, turning circle, docks and sand trap of Paradip Port Trust for the year 2022-23.

3. Maintenance dredging of approach channel, entrance channel, turning circle, docks and sand trap of Paradip Port Trust for the year 2023-24.

4. Capital dredging in the north dock complex of Paradip Port.

5. Maintenance dredging at new sand trap (NST) and its approaches and other areas of VPA for the year 2022-23.

6. Maintenance dredging at new sand trap (NST) and its approaches and other areas of VPA for the year 2023-24.

7. Chartering of DR-XXI to M/s. RKEC Projects Limited for dredging operations at Visakhapatnam.

8. Chartering of DR-XV to M/s. JP Offshores for dredging operations at DGNP, Visakhapatnam.

9. Chartering of DR-XI to M/s. Aurobindo Realty Infrastructure Pvt. Ltd for dredging operations at Ramayyapatanam.

10. Dredging for maintenance of channels and basins at Cochin Port for the year 2022-23.

11. Maintenance dredging of naval channels (Southern Naval Command, Kochi) at Ernakulam for the years 2022-23.

12. Maintenance dredging of Mumbai harbour channel and JN Port channel for the year 2022-23.

13. Capital dredging at Mangrol fishing harbour for 2022-23.

B. ii) New Contracts taken up during the year

2023-24:

1. Chartering of DR-XI to M/s. Aurobindo Realty Infrastructure Pvt. Ltd for dredging operations at Ramayyapatanam.

2. Dredging for maintenance of channels and basins at Cochin Port for the year 2023-24.

3. Maintenance dredging of naval channels (Southern Naval Command, Kochi) at Ernakulam for the year 2023-24.

4. Maintenance dredging at New Mangalore Port for the year 2023-24.

5. Maintenance dredging of Mumbai harbour channel and JN Port channel for the year 2023-24.

6. SAFETY MANAGEMENT SYSTEM (ISM)-

(a) All dredgers (except dumb vessel DCI Dredge XVIII) of DCI hold valid Safety Management Certificate (SMC).

(b) DCI Dredge VIII, DCI Dredge XI and DCI Multicat-1 hold valid Indian Coastal Vessel Safety Certificate.

(c) DCI holds a Document of Compliance (DOC) valid till 24.06.2027. The same is being endorsed every year after annual verification audit by DG Shipping.

Ship Security System (ISPS)-

a) All dredgers (except dumb vessel DCI Dredge XVIII) of DCI hold valid International Ship Security Certificate (ISSC).

b) DCI Dredge VIII, DCI Dredge XI and DCI Multicat-1 ensure compliance with regard to Ship Security measures as defined in Annex 11 of the Notification for Indian Coastal Vessels.

Quality Management System (ISO 9001:2015)-

DCI is certified for Quality Management System (ISO 9001:2015) and the certificate is valid up to 24th February, 2025. The QMS surveillance audit is being carried out every year by IRQS as part of certification of the system.

Environmental Management System (ISO 14001:2015)-

DCI is certified for Environmental Management System (ISO 14001:2015) and the certificate is valid up to 12th March, 2025. The EMS surveillance audit is being carried out every year by IRQS as part of certification of the system.

7. MEMBERS/ INVESTOR SERVICES

The shares of the Company are listed on Bombay Stock Exchange, National Stock Exchange and Calcutta Stock Exchange. The shares of the Company are dematerialised with both the depositories, NSDL and CDSL. M/s. Alankit Assignments Limited, Delhi is the R&T agent of the Company.

8. THE REQUIRED PARTICULARS ETC., PURSUANT TO SECTION 134 (3) OF THE COMPANIES ACT 2013 ARE AS UNDER:-

1. The extract of the Annual Return as provided under Sub-section (3) of Section 92 of the Companies Act, 2013 in Form No. MGT-9 is hosted on the website of the company http://www.dredge-india.com/ investors.html.

2. Number of meetings of the Board- During the financial year 2023-24, the Company held Nine Board Meetings. Further details are provided in the Corporate Governance Report. The Company has duly constituted the Audit Committee, Nomination and Remuneration Committee, Stakeholders

Relationship Committee and the details of the same including their constitution, no. of meetings and so forth are included in the Corporate Governance Report.

3. Directors'' Responsibility Statement- Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013 your Directors state that:

i) in the preparation of the annual accounts, the applicable accounting standards had been followed along with a proper explanation relating to material departures.

ii) the Directors had selected relevant accounting policies, consistently applied them as well as made prudent judgements and estimates so as to give a fair view of the state of affairs, profit and loss of the company at the end of the financial year.

iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with legal regulations to safeguard the assets of the Company, preventing and detecting fraud and other irregularities;

iv) the Directors had prepared the annual accounts on a going concern basis;

v) the Directors had laid down internal financial controls to be followed by the Company which were adequate and operating effectively;

vi) the Directors had devised proper systems to ensure compliance with all applicable laws.

4. Details with respect to frauds reported by auditors under sub-section (12), section 143, other than those which are reportable to the Central Government: NIL.

5. The independent directors have submitted the required declaration under sub-section (6), Section 149 with regard to meeting the stated criteria for independence.

6. 6. The promoters have been continuing with the same remuneration norms as per the provisions in share purchase agreements. The Independent Directors are paid sitting fees of Rs. 20,000/- (Rupees Twenty Thousand Only) for attending each meeting of the Board or Committee and are not paid any other remuneration. The part-time official Directors are not paid any remuneration by the Company. The remuneration of the Managing Director is within the limits specified in Section 197/198 of the Companies Act and rules made thereunder. The Company has constituted Nomination and Remuneration Committee as per Section 178 consisting of three Independent Directors.

7. Explanations or comments by the Board on every qualification, reservation, adverse remark or disclaimer made.

(A) THE INDEPENDENT AUDITORS IN THEIR REPORT FOR 2023-24 HAVE STATED AS UNDEROpinion-

We have audited the accompanying standalone IND AS financial statements of Dredging Corporation of India Limited, Visakhapatnam (''the Company'') which comprise the Balance Sheet as on March 31, 2024, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended and notes to the financial statements including the material accounting policy information and other explanatory information (hereinafter referred to as "the financial statements").

In our opinion and according to the explanations given to us, the aforesaid financial statements provide the information required by the Companies Act, 2013 ("the Act") and present a fair view in accordance with the Accounting Standards prescribed under section 133 of the Act read with the Companies ("Accounting Standards") rules, 2006, as amended ("Accounting Standards") and other accounting principles generally accepted in India, profit and loss statements, cash flows state of affairs of the Company as on March 31, 2024.

Basis for Opinion-

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143 (10) of the Companies Act, 2013. Our responsibilities under it are further described in the ''Auditor''s Responsibilities for the Audit of the Financial Statements'' section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India, together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and rules thereunder. We have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter-

We draw attention to;

a) Note No.1 regarding no impairment required as the market value/value in use is more than the carrying amount of PPE as at the end of the reporting date

b) Note no.6 to the financial statements regarding amounts receivable from M/s Jawaharlal

Nehru Port Trust on account of a disputed recovery made by them.

c) Note No.30 Sub note No.11 to the financial statements regarding debtors and creditors balances respectively. The said balances are subject to confirmations and reconciliations.

d) Note No.30 Sub note no,12 in respect of restatement of comparative and previous periods on account of prior period items accounted during the current year.

Our opinion remains unchanged regarding the above matters.

Key Audit Matters-

Key audit matters are those matters that in our professional judgment were of most significant in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon. We do not provide a separate opinion on these matters. We have identified no key audit matters to communicate in our report.

Information other than the Financial Statements and Auditor''s Report-

The Company''s Board of Directors is responsible for other information. The other information comprises the information included in the Management Report and Chairman''s Statement but does not include the financial statements and our auditor''s report. The annual report is expected to be made available to us after the auditor''s report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information or our knowledge obtained in the audit or otherwise is materially inconsistent with the financial statements. While reading the Annual Report, if we conclude that there is a material misstatement therein, we communicate the matter to those in-charge of governance to take necessary actions, as applicable under the relevant laws and regulations.

Responsibilities of Management and those incharge of Governance for the Standalone Financial Statements-

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial

performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards (IND AS) specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for detecting and preventing frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and design, implement and maintain adequate internal financial controls, that were operating effectively for ensuring the accuracy and completion of the accounting records, relevant to the preparation and presentation of the financial statements. These present a fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company''s ability to continue disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Financial Statements:

Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, due to fraud or error and to issue an auditor''s report that includes our opinion. Reasonable assurance offers a high level of certainty but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they influence the economic decisions of users taken on the basis of these financial statements.

As part of the audit in accordance with SAs, we exercise professional judgment and maintain scepticism throughout the audit. We also:

• Identify and assess the material misstatement risks of the financial statements, due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not

detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial control systems in place and the operating efficiency of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of the management''s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we identify the existence of a material uncertainty, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those in-charge with governance regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control identified during our audit.

We also provide those in-charge with governance, a compiled statement with relevan ethical requirements regarding independence as well as to communicate with them all relationships and other matters that may bear on our independence and where applicable, related safeguards.

From the matters communicated with those incharge with governance, we identify those matters

that are most significant in the audit of the financial statements of the current period and are therefore, the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we decide that a matter should not be communicated in our report because the adverse consequences of doing so would outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we provide a statement in ''Annexure A'' on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143 (3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations to the best of our knowledge and belief for the purposes of our audit.

(b) In our Opinion, proper books of accounts as required by law have been kept at the Company so far as it appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss, Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards prescribed under Section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014.

(e) (e) On the basis of the written representations received from the Directors as on March 31, 2024, taken on record by the Board of Directors, none of the Directors is disqualified from being appointed as a Director in terms of Section 164(2) of the Act.

(f) (f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion, to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements -refer to Note no. 30 to the standalone financial statements.

(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company- refer to Note no. 7 to the standalone financial statements.

(iv) Based on our examination including test checks, the Company has used an accounting software for maintaining its books of account, featuring recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit, we did not come across any instance of audit trail feature being tampered with.

(v) (i) The Management has represented

that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds, share premium or any other sources or kind of funds) by the Company or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) The Management has represented, that, to the best of its knowledge and

belief, no funds (which are material either individually or in aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(iii) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.

(h) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion, to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

3. As required under the directions and subdirections issued by the Comptroller and Auditor General of India in terms of sub section 5 of Section 143 of the Companies Act, 2013 we herewith enclose our report in Annexure - C.

"Annexure A" to the Independent Auditors'' Report:

(Referred to in Paragraph 1 of ''Report on Other

Legal and Regulatory Requirements'' in our report

of even date)

(A) The Company has maintained its fixed asset register in an editable Excel Format and has not complied with the necessary recording of full particulars, including quantitative details and situation of property, plant and equipment.

(B) The Company does not have any intangible assets, clauses (B) of paragraph 3 (i) of the order is considered inapplicable to the Company. The management has carried out a physical verification of all major assets (Dredgers) on a yearly basis. In our opinion, the periodicity of the physical verification is reasonable. No material discrepancies were noticed on such verification.

According to the information and explanations furnished to us and on the basis of our examination of the records of the Company and read together with Note No. 30, Subnote No. 16 to the Financial Statements, the details of title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

The Company had not revalued any of its property, plant and equipment (including right of use of assets) or intangible assets.

To the best of our knowledge and information, no proceedings have been initiated or are pending ag a inst the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

The Inventories on the Dredgers at branches have been physically verified by the management during the year. However, the coverage and procedure of verification by the management requires improvements like timely reconciliation, identification of non-moving and obsolete inventory. Subject to which, the discrepancies noticed upon verification, between physical stocks and book records were less than 10% in aggregate of each class of inventory.

The Company was sanctioned working capital limits in excess of 5 crore in aggregate by banks/financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the Company with such banks/financial institutions are not in agreement with books of account of the Company to the extent as reported below read with Note No. 30, Sub-note 16 to the Financial Statements.

Particulars	Quarter ended 30th June 2023	Quarter ended 30th September 2023	Quarter ended 31st December 2023	Quarter ended 31st March 2024
Trade receivables balance as per books	27,975.49	34,533.19	37,065.84	35,693.43
Trade receivables Balance as per the quality statement	35,400.43	34,618.62	37,065.85	35,769.25
Difference	-7,424.94	-85.43	-0.01	-75.82

(iii) Since the Company had not made any investments/granted any loans and advances in loans, clauses (a) to (f) of paragraph 3 (iii) of the order are considered inapplicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loans, investments, guarantees and security.

(v) The Company has not accepted any deposits or amounts which are deemed to be deposits to which provisions of Sections 73 to 76 and other relevant provisions of the Act and rules made thereunder are applicable.

(vi) According to the information and explanations given to us by the Central Government has not prescribed maintenance of cost records under section 148(1) of the Companies Act, 2013 in respect of the Company''s nature of business.

(vii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, it is regular in depositing the undisputed statutory dues including Goods and Services Tax, Provident Fund, Employees'' State Insurance, Income-Tax, Sales-Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess, and other statutory dues with the appropriate authorities, except for interest liability on GST ITC reversal to the tune of Rs. 2.06 crore which had been provided for the books.

(a) According to the information and explanations given to us, the following demands have not been deposited on account of disputes.

S.No	Name of the Statute	Nature of Dues	Forum where Dispute is pending	Period to which amount relates	J (In Lakhs)
1	Income Tax Act, 1961	Income Tax	High Court	2008-09 to 2011-12	2828.00
2	Income Tax Act, 1961	Income Tax	CIT (A)	2011-12 to 2014-15 & 2016-17 to 2020-21	5801.00
3	Income Tax Act, 1961	Income Tax	ITAT	2015-16	82.00
4	Income Tax Act, 1961	Income Tax	CPC	2020-21	596.00
5	Finance Act, 1994	Service Tax	CESTAT	2005-06 to 2017-18	13,843.00
6	GST Act,2017	GST	Tribunal	2017-18	918.00
7	GST Act,2017	GST	Addl. Commissioner	2017-18	310.00

(viii) There were no transactions that were not recorded in the books of account that have been surrendered or

disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

(ix) (a) In our opinion and according to the information and explanations given to us, the Company has not

defaulted in repayment of loans, other borrowings or interest to any lender.

(b) From the information furnished to us, the Company is not declared wilful defaulter by any bank or financial institution or other lender.

(c) Based on review of the records of the term loan drawn and utilisation thereof on an overall basis, the term loans have been applied for the purposes for which the loans were raised.

(d) According to the information and explanations given to us, the procedures performed by us and on an overall examination of the financial statements of the Company, we report that no funds raised on short term basis have been used for long-term purposes by the Company.

(e) The Company had not taken any fund from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures.

(f) During the year the Company had not raised any loans on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

(x) (a) The Company had not raised any money

by Initial Public Offer or further Public Offer (including Debt Instruments).

(b) According to the information and explanations given to us and based on our examination of the records of the Company, during the year the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible debentures) during the year.

(xi) (a) Based upon the audit procedures

performed for the purpose of reporting true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud by the Company or on the Company has been noticed or reported during the year.

(b) The auditors have not filed any report with the Central Government under sub-section (12) of section 143 of the Companies Act, in form ADT -4, as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014.

(c) From a review of the Secretarial Records, we observe that the Company had not received any whistle blower complaints during the year.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, Paragraph 3 (xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, the transactions with related parties are in compliance with Section 177 and 188 of the Act, where applicable and details of such transactions have been disclosed in the Financial Statements as required by the applicable Accounting Standards.

(xiv) (a) The Company has appointed an external

agency to carry out internal audit and their reports were made available to us. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

(b) We have considered the reports of the Internal Auditors for the period under audit.

(xv) According to the information and explanations given to us and based on our examination of

the records of the Company, the Company has not entered into non-cash transactions with Directors or persons connected with them.

(xvi) (a) According to the information and

explanations given to us, the Company is not required to be registered under section 45-1A.

(b) Upon a review of the records of the

Company, we are of the opinion that the Company had not conducted

any non-banking financial or housing finance activity.

(c) The Company is not a Core

Investment Company (CIC) as defined in the regulations made by the

Reserve Bank of India.

(d) The Company is not part of any group (as

per the provisions of the Core Investment Companies (Reserve Bank) Directions,

2016 as amended).

(xvii) The Company has not incurred any cash loss in the current financial year but had incurred cash loss in immediately preceding financial year, amounting to Rs.4,524.81 lakh.

(xviii) During the year there were no resignation of statutory auditors.

(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the standalone financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

(xx) (a) The Company does not have any unspent

amount in respect of other ongoing

projects as required under sub-section (5) of section 135 of the said Act.

(b) The Company does not have any unspent amount in respect of ongoing projects that require to be transferred to a special account in compliance with the provision of sub-section (6) of section 135.

(xxi) There are no reportable entities under these clauses, hence paragraph 3 (xx) of the order is considered inapplicable to the Company.

"Annexure - B'''' (Referred to in Paragraph 2(f) of ''Report on Other Legal and Regulatory Requirements'' in our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act").

We have audited the internal financial controls over financial reporting of Dredging Corporation of India Limited ("the Company") as of March 31, 2024 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors'' Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit

to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1)Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and Directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial

controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

According to the information and explanations given to us and based on our audit, the following material weaknesses have been identified in the control environment, entity''s risk assessment process, control activities, information system and communication, monitoring of controls and the operating effectiveness of the Company''s internal financial controls with reference to financial statements as on March 31,2024.

a) Internal control system for identification and valuation of non-moving and obsolete stock. Delays and omission in passing consumption entries and subsequent rectifications thereof for Inventory lying onboard the Dredgers.

b) System allows posting of consumption entries against inventory items which have inadequate/nil balances resulting in negative inventory closing balances.

c) Internal control system for customer acceptance, credit evaluation and establishing credit limits for sales, which could potentially result in the Company recognizing revenue without establishing reasonable certainty of ultimate collection.

d) The ERP system is not periodically tested.

e) Maintenance of details of assets like location, quantity and so on in editable excel format.

f) Periodical reconciliation of trade payable and receivable accounts with proper monitoring and clearing of pending items.

g) The IFC Control review and testing had been assigned to a consultant but had not been completed as on the conclusion of our audit.

A ''material weakness'' is a deficiency, or a combination of deficiencies, in internal financial controls with reference to financial statements such that there is a reasonable possibility that a material misstatement of the Company''s annual or interim financial statements will not be prevented or detected on a timely basis.

In our opinion, to the best of our information and according to the explanations given to us, except as stated above, the Company''s internal financial controls with reference to financial statements were operating effectively as of March 31,2024 based on the internal controls with reference to the financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of internal financial controls over financial reporting issued by the Institute of Chartered Accountants of India.

We have considered the material weakness identified and reported above in determining the nature, timing and extent of audit tests applied in our audit of the financial statements of the Company for the year ended March 31,2024 and these material weaknesses do not affect our opinion on the financial statements of the Company.

"Annexure-C" (Referred to in Paragraph 3 of ''Report on Other Legal and Regulatory Requirements'' in our report of even date)

Report on Directions issued by the Comptroller and Auditor General of India under section 143(5) of the Companies Act, 2013

S.No Areas Examined	Observations / Findings
1 Whether the company has a system in place to	The Company has a system in place to process all the
process all the accounting transactions through	accounting transactions through IT System. i.e. Microsoft
IT system? If yes, the implications of processing of	Dynamics. It is suggested that the Company shall make a
accounting transactions outside IT system on the	policy for getting Systems Audit done periodically.
integrity of the accounts along with the financial
implications, if any, may be stated
2 Whether there is any restructuring of an existing	According to the information and explanations given to
loan or cases of waiver/write off of debts/loans/	us and based on our examination of the records of the
interest and so forth made by a lender to the	Company, there has been no restructuring/ waiver/write
Company due to the Company''s inability to repay	off of any existing loan taken by the Company.
the loan? If yes, the financial impact may be stated.
Whether such cases are properly accounted for?
(In case, lender is a Government company, then
this direction is also applicable for statutory auditor
of lender company)

9. INSURANCE

The Company has taken appropriate insurance for its assets against foreseeable perils.

10. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS

There are no significant and material orders passed by the regulators, courts or tribunals which could impact the going concern status and the Company''s future operations.

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

Pursuant to provisions of Section 197 of the Companies Act, 2013, read with Rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the names and other particulars of employees along with the ratio of remuneration of each Director to the median employee and such other details form part of Directors'' Report and is Annexed to this Report.

12. VENDOR DEVELOPMENT

This is a continuous process and DCI procures spares and stores on a regular basis from suppliers spread all over the world. DCI is updating the supplier-base continually. DCI has adopted e-procurement process, as per Govt. of India guidelines, emphasis was given to facilitate and enable the vendors by way of training support and hand holding support to participate in the e-procurement processes of the Company. DCI has organised a State Level Vendor Development programme in association with local Micro, Small and Medium Enterprises (MSME) Office (Visakhapatnam Branch) and has been continuously participating and interacting with prospective vendors in most of the vendor development programme cum buyers-sellers meet conducted by the Ministry of MSME/National Small Industries Corporation (NSIC). The Company has invited MSME vendors to visit DCI''s vessels for identification of spares for indigenisation. Tenders are published in DCI official website and Central Public Procurement Portal for wider publicity so that MSMEs can participate. In view of the total annual procurement, a major portion is fuel, which cannot be procured from MSME vendors and further since most of the dredgers

of DCI have been built at Netherlands and therefore most of the spare needs to be imported from OEMs abroad, the Company has represented for relaxation for implementation of the Public Procurement Policy mandatory provision of 20% procurement from MSMEs.

13. R&D ACTIVITIES

DCI Dredge Aquarius was fitted with an indigenously developed Programmable Logic Controller (PLC) in place of existing PLC system which was imported and caused frequent problems due to non-availability of spare parts/ services of the Original Equipment Manufacturer abroad. The newly installed PLC has been found to be cost effective and working satisfactorily.

14. CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Pursuant to the DPE Guidelines and SEBI (LODR) regulations, 2015, Management Discussion and Analysis Report, Corporate Governance Report and Certificate from the Company Secretary in practice regarding compliance of conditions of Corporate Governance are attached, forming part of this Report.

15. MAN POWER

The total number of employees (both on shore and floating) in the corporation, as on March 31, 2024 was as under-

Shore (Executives 112 & Non-Executives 60)	172
Floating (Regular 76 & Contract 310)	386
Total	558

16. INDUSTRIAL RELATIONS

The industrial relations in the Corporation continued to be cordial throughout the year under review.

17. EMPLOYMENT OF VARIOUS RESERVED CATEGORIES

The manpower position with regard to various reserved categories is as indicated hereunder:

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfil its obligation to providing employment opportunities

S.No Areas Examined		Observations / Findings
3 Whether funds (grants/subsidy and so forth) received/receivable for specific schemes from Central/State Government or its agencies were properly accounted for/utilised as per its term and conditions? List the cases of deviation		No such Funds have been received/receivable for specific schemes from central/ state agencies.

to SC/ST candidates, in accordance with the Government Policy. The overall representation of SC/STs in the Corporation (both shore and floating establishments, but excluding MPWs) as on March 31, 2024.

Sl. No.	Shore Establishment	Total Strength	SC	Percentage	ST	Percentage	Prescribed Percentage
							SC	ST
1.	Shore Estt.	172	34	19.77%	11	6.40%	16.66	7.5

B. Employment of Ex-Servicemen

The representation of ex-servicemen (shore-based employees) in Group ''C'' and ''D'' categories in the Corporation was nil against the percentage of 14.5% and 24.5% respectively prescribed by the Government.

C. EMPLOYMENT OF PHYSICALLY CHALLENGED

The number of physically challenged employees in the Corporation as on March 31, 2024 is 02 (Two). The group-wise break-up A, B, C, D categories in Shore establishment, is as furnished hereunder-

Sl. No	Group	Total Strength	No. of persons with Disabilities actually Employed	Percentage
(1)	(2)	(3)	(5)	(6)
1.	Group ''A''	112	01	0.89
2.	Group ''B''	32	01	3.13
3.	Group ''C''	22	-
4.	Group ''D''	06	-	-
	Total	172	02	1.16

B. B. The existing schemes and the policy on WOMEN employees in DCI-

The number of women employees Non-Executives : 18

} ³¹

on Rolls as on 31.03.2024 : Executives : 13

18. COMPLIANCE WITH GOVERNMENT''S POLICY ON WOMEN

Based on the Supreme Court''s judgment and keeping in view the Government''s regulations on sexual harassment of women at work places, a Complaints Committee headed by a woman officer was constituted to inquire into the complaints of sexual harassment at work places. A complaints register is also being maintained.

DCI is a Life Member of the Forum for Women in Public Sector and one woman representative from DCI has been nominated to the above forum. Apart from the trade unions, the problems, if any relating particularly to women employees are looked into as and when the same are brought to the notice of the management.

19. EXISTING BENEFITS AND WELFARE MEASURES FOR THE WOMEN EMPLOYEES

a) The women employees of the Corporation, with less than two surviving children are entitled for 26 weeks of maternity leave.

b) Special casual leave not exceeding 14 working days is sanctioned to regular women employees of the Corporation to undergo non-puerperal sterilisation.

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

d) As per the Apex Court judgement and basing on the Government instructions, a Complaints Committee headed by a Woman Officer was constituted to inquire into the complaints of Sexual Harassment at work places. A Complaints Register is also being maintained.

e) Apart from the trade unions, the problems, if any, relating particularly to women employees are looked into as and when the same are brought to the notice of the management.

f) A recreation room has been provided exclusively for the women employees in the corporation.

g) Working uniforms are provided to Group ''D'' employees, as per the scales prescribed in the rules.

20. OTHER BENEFITS

Paternity leave of 15 days is allowed to a regular male employee having less than two children, during confinement of his wife, as per Leave Rules of the Corporation.

21. WAGE SETTLEMENTS

A. SHORE ESTABLISHMENT

i) Pay revision of Executive employees was implemented w.e.f. 01.01.2017.

ii) The wage revision of Non-Executive employees in the Shore Establishment was implemented w.e.f. 01.01.2017.

B. FLOATING ESTABLISHMENT

i) New Wage Agreements with respect to

Officers was implemented w.e.f. 01.01.2024.

ii) New Wage Agreements with respect to

Floating Petty Officers was implemented w.e.f. 01.01.2024.

iii) New Wage Agreements with respect to Floating crew was implemented w.e.f. 01.01.2024.

22. HUMAN RESOURCES DEVELOPMENT

The Corporation is making sincere and concerted efforts for the overall development of Human Resources. During the year 2023-24, 56 Executives and 33 Non-Executive employees were imparted various training programmes.

23. IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the Grievances/ Complaints received from the Public. The Company Secretary is the Director of Public Grievances. As per the Ministry''s guidelines, a status report is being submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is being forwarded to the Ministry. In line with the Ministry''s direction, a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the computer network of the Corporation, which works in hand-shake mode between the Ministry and the Corporation.

24. ACTIVITIES OF PUBLIC GRIEVANCES AND COMPLAINTS CELL

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the grievances/ complaints received from the public. The Company Secretary is the Director of Public Grievances. As per the Ministry''s guidelines, a status report is being submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is forwarded to the Ministry. In line with the Ministry''s direction, a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the Computer Network in the Corporation, which works in hand-shake mode between the Ministry and the Corporation.

25. 25. WELFARE MEASURES PROVIDED FOR THE EMPLOYEES AND THEIR FAMILY MEMBERS

The Corporation continued various welfare schemes viz., Family Pension Scheme, Gratuity Scheme, personal accident insurance coverage, Group Savings Linked Insurance Scheme, contributory Provident Fund, maternity leave, paternity leave, payment of ex-gratia

to legal heirs/members of the family of deceased employees, canteen for project employees, medical attendance, , merit scholarships for the children of SC/ST employees, pension scheme and DCI, Retired Employees Medical Trust/Scheme, family carriage facility for fleet personnel among others.

26. INFORMATION & FACILITATION COUNTER

In order to ensure transparency in the functioning of the Corporation and also for easy and speedy access for any information to the public, an Information & Facilitation Counter (IFC) was setup at DCI Head Office, Visakhapatnam and the same is publicised in the web-site.

CITIZEN''S CHARTER

As per the directives of the Government of India, to focus on the commitment of DCI towards its citizens /clients with respect to standard of services, information, choice and consultation, non-discrimination and accessibility, grievance redressal, courtesy and value for money, including expectations ofthe organisation from the citizen/ client for fulfilling the commitment of the organisation, a Citizens'' Charter approved by the Competent Authority was posted on the Corporate website.

As part of requirement thereof, a Task Force has been constituted with representatives from the Management and Staff Unions, as well as from the Visakhapatnam Port Authority, a local clientele organisation. The Task Force attends to the duties as prescribed by the Department of Administrative Reforms and Public Grievances. The HOD (HR) is designated to be the Nodal Officer to coordinate and monitor the formulation and implementation of the Citizens Charter in DCI, who also functions as the Member Secretary of the Task Force.

27. ACTIVITIES AND ACHIEVEMENTS OF VIGILANCE DEPARTMENT

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

1) The Vigilance Awareness Week (VAW) 2023

The Vigilance Awareness Week 2023 was observed at the Corporate Headquarters and at various Regional/Project offices of Dredging Corporation of India Ltd. from 30th October, 2023 to 5th November, 2023, under the auspices of Central Vigilance Commission (CVC) to spread awareness against corruption. CVC''s theme for the year 2023 was ''Say no to corruption; commit to the Nation'' with emphasis on spreading awareness against corruption to all sections of society. In line with the letter and spirit of the theme and guidelines of CVC, several activities were organised, covering all sections of the society, with the aim of spreading

awareness and sensitising the public about ways and means to fight corrupt practices.

During the VAW-2023, outreach activities were conducted at schools and colleges like essay writing, elocution and painting among others. We could achieve this with the help of support of the print media and social media, which gave wide publicity to our activities.

2) Preventive Vigilance

As a measure of preventive vigilance, 4 Periodic, 12 Surprise and 3 CTE type inspections have been taken up during the year. The lapses/irregularities noticed in this regard have been communicated for taking remedial/corrective actions.

3) Systemic Improvements undertaken

Various Systemic improvement measures were suggested by the Vigilance Department for implementation.

i) Proper accountability of inventory of spares and stacking them at designated locations.

ii) To exercise due diligence during tender evaluation process and amendment of "Settlement of Dispute clause" in tender document.

iii) It is suggested to digitise the available records immediately to avoid misplacements of files and for quick retrieval of data.

iv) Whenever there is rotation of employees or change of working sections, HODs shall ensure that they are rotated by following proper handing over and taking over reports.

v) HR department shall ensure verification of caste/qualification certificates/ character and antecedents/confidential reports in time.

vi) Tendering departments to ensure that the proposals are initiated well in advance complying the laid down guidelines of the corporation.

28. INFORMATION TECHNOLOGY, ERP & CYBER SECURITY

The Company has taken various initiatives for the benefit of stake holders. The major initiatives during FY 20232024 are given below.

(i) (i) The Company has implemented Microsoft

Dynamics 365 Finance & Operation ERP for different departments in March, 2021. The new features in the ERP for productivity improvement, close monitoring and automation have been put into use. The business intelligence dash boards have been

developed in the area of finance to provide various management reports.

(ii) The information system audit was carried to check availability of controls in ERP and the audit observations were liquidated.

(iii) The cyber security in the management plan for vessels is in place and drills were carried out regularly on different vessels to ensure readiness of complete team in case of cyber incidence.

29. STATUTORY AUDITORS

M/s. Rao & Kumar Co., chartered accountants, Visakhapatnam were appointed by the Comptroller and Auditor General of India as Statutory Auditors for auditing the accounts of the Company for the FY 2023-24. Pursuant to Section 142 (1) of the Companies Act, 2013 the remuneration of the Auditors has to be approved by the members at the AGM. In the previous AGM, the Audit Committee was authorised to fix the fees payable to the Statutory Auditors. It was recommended to authorise the Audit Committee for fixation of remuneration for statutory auditors for 2024-25.

30. INDEPENDENT AUDITORS'' REPORT

The Independent Auditors'' Report on the Accounts for 2023-24 given by the Statutory Auditors is placed along with the Accounts. Management Comments on matters of the Auditors have been given elsewhere in this report.

31. SECRETARIAL AUDIT REPORT

The report of the Secretarial Auditor - Mr. Sachin Agarwal of M/s. Agarwal S. & Associates, pursuant to Section 204 of the Companies Act, 2013 and rules made thereunder is placed after the Directors report. The comments/replies of the management on the observations of the Secretarial Auditor has been given elsewhere in this report.

32. C&AG COMMENTS

The Supplementary Audit for the accounts of the Company for the year ended March 31, 2024 by Comptroller and Auditor General of India is complete and is placed along with the accounts and replies of the management.

33. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (BRSR)

The Business Responsibility Report for the year ended March 31, 2024 as required under the SEBI regulations is annexed to the Directors Report.

34. VOLUNTARY DELISTING FROM CALCUTTA STOCK EXCHANGE

As per the approval of the Board, the Company has applied for Voluntary Delisting of Shares from Calcutta Stock Exchange in June, 2020. As per the request

of the Exchange, clarifications have been provided. Confirmation of the delisting is awaited.

35. DIRECTORS & KEY MANAGERIAL PERSONNEL

The Directors recommend approval of the Members above appointments/re-appointment of the Directors as proposed in the Notice to the AGM.

36. ACKNOWLEDGEMENTS

The Directors thank Hon''ble Minister, Hon''ble Minister of State of Ministry of Ports, Shipping and Waterways, its

Officers and staff for the valuable help, assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and co-operation extended by them. The Board is grateful to the Comptroller & Auditor General of India, the Member, Audit Board and the Statutory Auditors for their co-operation. The Board also thanks the Bankers of the Company for their valuable services. The Board expresses its gratitude to the valued customers for their continued patronage. The Directors place, on record, their appreciation of the services rendered by all the employees of the Corporation.

For and on behalf of the Board of Directors

-sd-

Place : Visakhapatnam Dr.Madhaiyaan Angamuthu, IAS

Date: 04.09.2024

---

Mar 31, 2023

DIRECTORS’ REPORT FOR THE YEAR 2022-23

Your Directors have pleasure in presenting this 47^th Annual Report together with the audited financial statements of the Company for
the year ended 31^st March’ 2023.

1. FINANCIAL RESULTS

PARTICULARS	2022-23	2021-22
(I) INCOME
Operations	1,16,480	80,103
Others	323	245
TOTAL INCOME	1,16,803	80,347
(II) EXPENDITURE
i.) Employees Benefits	9600	9,477
ii) Depreciation	13,585	12,020
iii) Repairs and maintenance	1455	691
iv) Power, Fuel and Lubricants	47001	32515
v) Spares and Stores	5249	3599
vi) Insurance	610	647
vii) Other Expenses	35063	21381
viii) Finance costs	2,856	1,210
TOTAL EXPENDITURE	1,15,419	81,540
Profit before exceptional items and Tax	1384	(1193)
Exceptional Items	-	1669
Profit before Tax	1384	477

2. ACQUISITION OF NEW DREDGER

We are happy to inform you that Ministry has accorded approval to the recommendations of the Expert Committee constituted for the
purpose of procurement of 12000 m3 TSHD dredgers by DCI to be constructed at Cochin Shipyard Limited under the Atma Nirbhar
Program - first in 2021, second in 2023 and the procurement of third dredger should be on the basis of analysis of performance of 2
dredgers. The third dredger capacity shall be determined based on gap viability analysis of the market in 2025 to achieve
requirements of dredging at Indian Major Ports as envisaged in Maritime Vision 2030. The agreement between Dredging Corporation
of India and Cochin Shipyard Limited was signed on 17/03/2022 and tripartite agreement between DCI-CSL-IHC was signed on
13/04/2022. The Cost of the dredger is 104.59 million EURO’s.

The first and Second installment was paid on 04/11/2022 and 14/11/2022 respectively. The third and fourth installments was paid on
11/04/2023 and 04/08/2023 for this year. This is a major milestone in the new market for which the company was working more than a
decade.

3. CAPACITY UTILISATION

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

Dredger	Operational Days		Quantity Dredged in LCuM
	Target	Actual	Target	Actual
TSHD VIII	237.00	237.71	87.93	86.55
TSHD XI	305.00	244.49	38.30	47.26
TSHD XII	305.00	325.12	32.60	27.05
TSHD XIV	305.00	312.14	18.97	21.38
TSHD XV	291.00	235.73	62.01	61.36
TSHD XVI	314.00	313.77	150.16	156.87
TSHD XVII	307.00	269.84	70.74	61.24
TSHD XIX	330.00	302.38	133.47	75.35
TSHD XX	310.00	280.10	33.03	91.17
TSHD XXI	264.00	217.36	23.38	22.48
CSD XXI	247.00	97.68	19.55	7.49
Backhoe-I	247.00	0.00	0.30	0.00
ID Ganga	247.00	138.30	5.90	3.26
Total	3,709.00	2,974.62	676.34	661.48
% Capacity Utilization	80.20%		97.80%

4. DCI FLEET

The Company has, 10 Trailer Suction Hopper Dredgers (TSHDs), 1 Cutter Suction Dredger (CSD), one Back Hoe Dredger and one
Inland Cutter Suction Dredger apart from other ancillary crafts.

5. DREDGING OPERATIONS

A. i) Important contracts completed during the year:

1. Maintenance dredging at New Sand Trap (NST) and its approaches & other areas of VPT and to pump the dredged material
to the shore by using extended rain bowing through Floating pipeline method for the year 2021-22.

2. Maintenance dredging of Entrance Channel, Dr. Ambedkar dock basin, Bharathi dock basin, Jawahar dock, Turning circle
and all berths of Chennai Port for the year 2022-23.

3. Capital and Maintenance Dredging Work at Kamarajar Port.

4. Dredging for maintenance of Channels and Basins at Cochin Port for the year 2021-22.

5. Maintenance Dredging of Naval Channels (Southern Naval Command, Kochi) at Ernakulam for theyears 2021 -22.

6. Chartering of DR-XI to M/s. Rock & Reef, Mumbai for dredging operations at Kochi.

7. Maintenance Dredging of Mumbai Harbour Channel and JN Port Channel for the year 2021 -22.

A. ii) New Contracts taken up during the year 2022-23:

1. Maintenance dredging of Approach Channel, Entrance Channel, Turning Circle, Docks & Sand Trap of Paradip Port
Authority for the year 2022-23.

2. Land reclamation of NRL COIT plot by pumping of dredged material from sand trap area of Paradip Port for the year 2022¬
23.

3. Chartering of DR-XV to M/s. JP Offshores for dredging operations at DGNP, Visakhapatnam.

4. Maintenance dredging at New Sand Trap (NST) and its approaches & other areas of VPT and to pump the dredged material

to the shore by using extended rain bowing through Floating pipeline method for the year 2022-23.

5. Chartering of DR-XI to M/s. Aurobindo Realty Infrastructure Pvt. Ltd for dredging operations at Ramayyapatanam.

6. Dredging for maintenance of Channels and Basins at Cochin Port for the year 2022-23.

7. Maintenance Dredging of Naval Channels (Southern Naval Command, Kochi) at Ernakulam for the years 2022-23.

8. Maintenance Dredging at New Mangalore Port for the Year 2022-23.

9. Maintenance Dredging at Mormugao Port for the year 2022-23.

10. Maintenance Dredging of Mumbai Harbour Channel and JN Port Channel for the year 2022-23.

11. Capital Dredging at Mangrol Fishing Harbour for 2022-23.

6. SAFETY MANAGEMENT SYSTEM (ISM):

a) All dredgers (except dumb vessel DCI Dredge XVIII) of DCI hold valid Safety Management Certificate (SMC).

b) DCI Dredge VIII, DCI Dredge XI and DCI Multicat-1 hold valid Indian Coastal Vessel Safety Certificate.

c) DCI holds a Document of Compliance (DOC) valid till 24.06.2027. The same is being endorsed every year after annual
verification audit by DG Shipping.

Ship Security System (ISPS):

a) All dredgers (except dumb vessel DCI Dredge XVIII) of DCI hold valid International Ship Security Certificate (ISSC).

b) DCI Dredge VIII, DCI Dredge XI and DCI Multicat-1 ensure compliance with regard to Ship Security measures as
defined in Annex 11 of the Notification for Indian Coastal Vessels.

Quality Management System (ISO 9001:2015):

DCI is certified for Quality Management System (ISO 9001:2015) and the certificate is valid upto 24th February’2025.The
QMS surveillance audit is being carried out every year by IRQS as part of certification of the system.

Environmental Management System (ISO 14001:2015):

DCI is certified for Environmental Management System (ISO 14001:2015) and the certificate is valid upto 12th March’2025.
The EMS surveillance audit is being carried out every year by IRQS as part of certification of the system.

7. MEMBERS/ INVESTOR SERVICES

a) The shares of the Company are listed on Bombay Stock Exchange, National Stock Exchange and Calcutta Stock Exchange.
The shares of the Company are dematerialized with both the depositories, NSDL and CDSL. The tax-free bonds are listed with
the Stock Exchange, Mumbai. M/s. KFin Technologies Limited, Hyderabad (upto 31.12.2022) and M/s. Alankit Assignments
Limited, Delhi (w.e.f 01.01.2023) are the R&T Agents of the Company. M/s.Catalyst Trusteeship Limited (formerly GDA
Trusteeship Ltd.), Pune is the Trustee for the The term of the Bonds was for a period of ten years and due date on 28/03/2023
for payment of an amount of Rs. 58.88 Crores towards principal amount and Rs.4.18 Crores towards interest amount. The
Company has made Annual Interest Payment along with principal amount of Rs.63,01,67,156/- (Rupees Sixty Three Crores
One Lakh Sixty Seven Thousand one Hundred and Fifty Six Only) on due date i.e. 28th Mar’2023, to the eligible bondholders as
per the record date.

8. THE REQUIRED PARTICULARS ETC., PURSUANT TO SECTION 134 (3) OF THE COMPANIES ACT 2013 ARE AS
UNDER: -

b) The extract of the Annual Return as provided under Sub-section (3) of Section 92 of the Companies Act, 2013 in Form No.
MGT-9 is hosted on the website of the company http://www.dredge-india.com/investors.html.

c) Number of meetings of the Board:- During the financial year 2022-23, the company has held Eight Board Meetings. Further
details are provided in the Corporate Governance Report. The Company has duly constituted Audit Committee, Nomination and
Remuneration Committee, Stakeholders Relationship Committee and the details of the same including their constitution, No. of
meetings etc., is included in the Corporate Governance Report.

d) Directors'' Responsibility Statement:- Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013 your Directors
state that:

i) in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with a proper
explanation relating to material departures;

ii) the Directors had selected such accounting policies and applied them consistently and made 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 at the end of the
financial year and of the profit or loss of the company for that period;

iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and preventing and detecting fraud and other
irregularities;

iv) the Directors had prepared the Annual Accounts on a going concern basis;

v) the Directors, had laid down internal financial controls to be followed by the company and that such internal financial
controls are adequate and were operating effectively;

vi) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.

e) Details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to
the Central Government: NIL.

f) The independent directors have submitted the required declaration under sub-section (6) of Section 149 with regard to meeting
the stated criteria for independence.

g) The Promoters have been continuing with the same remuneration norms as per the provisions in share purchase agreement.
The Independent directors are paid sitting fees of ?20000/- for attending each meeting of the board or committee thereof and
are not paid any other remuneration. The Part-time official Directors were not paid any remuneration by the Company. The
remuneration to Managing Director is within the limits specified in Section 197/198 of the Companies Act and Rules made
thereunder. The Company has constituted Nomination and Remuneration committee as per Section 178 consisting of three
Independent Directors.

h) Explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made.

(A) THE INDEPENDENT AUDITORS IN THEIR REPORT FOR 2022-23 HAVE STATED AS UNDER:-

Qualified Opinion

We have audited the accompanying standalone Ind AS financial statements of Dredging Corporation of India Limited, Visakhapatnam
("the Company") which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (including Other
Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended and notes to the
financial statements including a summary of significant accounting policies and other explanatory information. (Hereinafter referred to
as "the financial statements").

In our opinion and to the best of our information and according to the explanations given to us, except for the effect of the matter
described in the Basis for Qualified Opinion section of our report, the aforesaid financial statements give the information required by
the Companies Act, 2013 ("the Act'') in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at March 31,2023 and its profit, changes in equity and
its cash flows for the year ended on that date.

Basis for Qualified Opinion

1. As described in Note No 30.11 to the accompanying financial statements, Company has not determined the retrospective impact of
the change in Accounting Policies on the Opening balance of Other Equity and the Current and Previous reporting periods thereby not
complying with the measurement and disclosure requirements under Ind AS 8, Accounting Policies, Changes in Accounting Estimates
and Errors. In the absence of sufficient and appropriate audit evidence, we are unable to comment on the impact thereof on the
amounts reported in the Financial Statements.

2. As described in Note No 30.21 to the accompanying financial statements which states that Outstanding balances under Trade
Payables, Other Payables, Trade Receivables, tDs receivable, GST & GST ITC and Advance to Suppliers are subject to
reconciliation and confirmations thereby not complying with the measurement and disclosure requirements under Ind AS 37,
Provisions, Contingent Liabilities and Contingent Assets and Ind AS 109, Financial Instruments. In absence of sufficient and
appropriate audit evidence, we are unable to comment on the impact thereof on the amounts reported in the Financial Statements.

3. As stated in Note 30.20 to the accompanying financial statements an Arbitral Award for disputed payables, was passed in favour of
M/s Mercator Limited (Formerly Mercator Lines Limited) (MLL). As the company''s challenge of Award was dismissed in multiple legal
forums, MLL had filed an Execution petition before the High Court of Delhi seeking enforcement of Arbitral Award in the year 2019.
The management of the company had approached the High Court seeking time for settlement of decretal dues with Mercator Limited
(Represented by the Resolution Professional) which did not fructify. The learned High Court had directed the company to deposit an
amount of an amount of ? 5.00 crores before January 31, 2023 and a further amount of ? 8.00 crores by May 10, 2023 in view of the
Company''s repeated violations of the directions to place a proposal for deposit of the amount awarded into court. The amount
disputed is to the tune of an amount of ? 45.70 Crores totalling to an amount of approximately ? 68.71 Crores including interest and
other related costs. The management of the company has concluded that no provision against the same, was required at this stage
and treated the same as contingent liability. This has resulted in overstatement of profits by ? 68.71 Crores, and understatement of
trade payables by the same extent.

4. As stated in Note no. 30.10 to the accompanying financial statements the trade receivables include a sum of ? 65.84 Crores due
from M/s. Sethusamudram Corporation Ltd. (SCL), towards works executed during financial years 2005-06 to 2008-09 as has been
recommended by a committee chaired by Additional Secretary and Financial Advisor (AS&FA committee) Government of India. The
committee stated that a note seeking approval of the cabinet needs to be moved by SCL for seeking government budgetary resources
for SCL to make payment of balance outstanding dues to the company. There is a significant delay in realization of the said amount
and the document evidencing the relevant budget allocation by the Government of India is also not available yet. In view of the same
the realisability of the said amount is remote. The management has concluded that no provision against the same, was required at
this stage as the same is treated as receivable considered good though unsecured. This has resulted in overstatement of profit and
receivables to the same extent.

5. As per the information submitted to the Board of Directors in its meeting dated 08th August 2022, there are indications of
impairment in the case of DCI Dredge XVIII. As per Para 9 of Indian Accounting Standard (Ind AS) 36 on Impairment of Assets, the
Company needs to assess at the end of each reporting period whether there is any indication that an asset may be impaired, and if
any such indications exist, company shall estimate the recoverable amount of the asset. However, Company has not estimated the
recoverable amount for DCI Dredge XVIII. In the absence of adequate information, we are unable to comment on the impact thereof
on the amounts reported in the financial statements.

6. As stated in Note no. 30.18 to the accompanying financial statements, an Arbitral award issued by the Joint Arbitrator of PMA
against the company in favour of M/s Mazagon Dock Limited (MDL) on 12-06-2018 for an amount of 115 Crores. The company has
challenged the said award before AMRDC and the matter is still pending. During the financial year 2019-20 MDL approached NCLT
with a claim of ? 25.50 Crores and invoked CIRP against the Company. NCL T admitted the case on October 24, 2019, and the CIRP
proceedings are pending before NCLT. The management of the company has concluded that no provision against the same was
required at this stage and treated the same as contingent liability. This resulted in understatement of trade payables by ? 25.50
crores, understatement of PPE by ? 13.30 Crores (approx.), overstatement of Retained Earnings by ? 12.20 Crores (approx.) and
profit by ? 0.99 Crores (approx.).

7. As stated in Note no.30.14 to the accompanying financial statements, owing to a dispute Cochin Port Trust had forfeited the
security deposit made by the company to the tune- of ? 5.59 Crores in the financial year 2020-21. The company had accepted the
conciliator''s recommendations and issued an undertaking for full and final settlement. The company, however, continues to account
for the said amount as receivable from Cochin Port Trust. As on the date of this report, company had not recovered the said security
deposit nor did it receive any positive confirmation of its release from Cochin Port Trust. The management has concluded that no
provision against the same, was required at this stage and the same is treated as receivable considered good. This resulted in
overstatement of profit and understatement of other provisions by ? 5.59 Crores.

8. As stated in Note No. 30.13 during the year, under various dredging works carried out by the company, customers have either
recovered Liquidated damages on several accounts or withheld amounts towards LD or are entitled to do the same, as per the terms
of agreement that company had entered into with respective customers totalling to the tune of ? 15.34 Crores. As on the date of this
report, neither the said amounts were released nor a positive confirmation from its customers is received regarding waiver of LD. The
management has concluded that no provision against the same, was required at this stage and the same is treated as receivable
considered good. This resulted in overstatement of profit and receivables to the same extent.

9. Company had availed ITC of GST on vendor bills/invoices- in respect of which payment is pending for more than 180 days. As per
the provisions of GST, the same is to be reversed and interest is to be paid in respect of invoices pending payment beyond 180 days.
In several cases ITC had not been reversed. Further, in cases where ITC has been reversed, interest which is payable under GST law
has not been paid. In the absence of sufficient and appropriate audit evidence, we are unable to comment on the impact thereof on
the amounts reported in the Financial Statements.

10. Out of Inventory of 135.62 Crores vide Note no. 5 to the Balance Sheet, physical verification for items valuing ? 10.28 Crores at
11 locations, had not been conducted by the Company during the year. The impact of the same on amounts stated in Financial
Statements is not determinable. Further, shortages identified and reported in the physical verification to the tune of ? 3.55 Crores had
not been adjusted in the books of account. As a result, profit and inventory is overstated by ? 3.55 Crores. Even in respect of reported
shortages, reconciliation for entries of regular consumptions vis-a-vis physical verification shortages is pending, in as much we are
unable to conclude that the shortages have been adequately adjusted in the books of account and unable to comment on the impact
of the same on the amounts reported in the Financial Statements.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143 (10) of the Companies Act,
2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under
the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to;

a. Note No 30.17 to the financial statements regarding amounts receivable from M/s Jawaharlal Nehru Port Trust on account of a
disputed recovery made by them.

b. Note No 30.12 to the financial statements regarding the accounting treatment of Prior Period Items and the disclosure thereof in the
Current and Previous reporting periods.

Our Opinion is not modified in respect of above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most significant in our audit of the financial statements
of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters. We have determined that there are no key audit
matters to communicate in our report.

Information Other than the Financial Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the information included
in management report and chairman''s statement but does not include the financial statements and our auditor''s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and those charged with Governance for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial
performance, changes in equity and cash flows of the company in accordance with the accounting principles generally accepted in
India, including the Accounting Standards (Ind AS) specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the company and for preventing and detecting frauds and other irregularities; selection and application
of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion
on whether the company has adequate internal financial controls system in place and the operating effectiveness of such
controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s
report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.

Other Matter

Attention is drawn to the fact that the figures for the quarter ended March 31, 2023 and the corresponding quarter ended in the
previous year as reported in the Statement are the balancing figures between audited figures in respect of the full financial year and
the published year to date figures upto the end of third quarter of the relevant financial year. Also, the figures upto the end of the third
quarter had only been reviewed and not subjected to audit.

a. Particulars of loans, guarantees or investment under Section 186: - details of investment given under the respective head in the
financial statement. The Company has not given any loans or guarantees.

b. Particulars of contracts or arrangements with related parties referred to in Section 188 (1) :-In line with the provisions of the
Companies Act, 2013 and the SEBI (LODR) Regulations, 2015, the Company has formulated a Policy on materiality of Related
Party Transactions and also on dealing with Related Party Transactions. The same has been posted on the website of the
Company. The related party transactions of DCI for the year 2022-23 are mainly with other State controlled enterprises. The
necessary disclosures with regard to the transactions with the related parties - Promoter Group has been made at Note No. 29
- Additional information on Financial Statements, Sl.No. 18 with heading - Related Party Transactions in the financial statement
for the year 2022-23 and the relevant disclosure in Form No. AOC-2 has also been Annexed to the Board Report. During the
year under review, apart from what is disclosed, the Company has not entered into financial or other transactions of material
nature with its Promoters, the Directors and senior management that may have potential conflict with the interests of the
Company at large and/or which are not in normal course of business. There have been no loans/adZances/investments or any
other transactions with any of the entities in which Directors are interested as per the disclosures given by them coming within
the purview and requiring disclosure under related party transaction under the stated Accounting Standard.

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

the amounts, if any, which it proposes to carry to any reserves: The following amounts have been transferred to different
reserves during the year: -

i) Tonnage Tax Reserve u/s115VTutilization of the IT Act - (?472 Lakhs)

ii) Transfer to General Reserve - ?3000.00 Lakhs

iii) Transfer to Debenture Redemption Reserve - NIL

d. In view of the financial position of the company and loan repayment commitments, the Board of directors have not
recommended any dividend for the year 2022-23.

e. material changes and commitments, if any, affecting the financial position of the company which have occurred between the end
of the financial year of the company to which the financial statements relate and the date of the report: Nil

f. the conservation of energy, technology absorption, foreign exchange earnings and outgo:

i) Conservation of energy: The following measures have been taken:

For online fuel monitoring, the Company is in the process of procurement of flow meters during the year for Dredge XII, XIV and
XVII.

ii) Continuous efforts are being made to optimize the fuel consumption on board dredgers as cost of fuel constitutes approximately
35-45% of operational cost.

iii) Technology absorption: There was no transfer of technology and consequently there is no absorption of technology during the

year.

o) A statement indicating development and implementation of a risk management policy for the company including identification
therein of elements of risk, if any, which in the opinion of the Board may threaten the existence of the company:

The Company has in place a Risk Management Policy to drive a common integrated view of risks, optimal risk mitigation
responses and efficient management of internal control and assurance activities. The Risk Management Committee has been
constituted. The threats, risk and concerns are discussed in the Management Discussion and Analysis Report.

p) the details about the policy developed and implemented by the company on corporate social responsibility initiatives taken
during the year:

The Company has in place a Corporate Social Responsibility Committee and a Corporate Social Responsibility and
sustainability Policy. During the year 2022-23 the amount required to be spent under CSR is NIL. The particulars of the CSR
activities in the prescribed format as required under the Companies Act are given in Annexure.

q) a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and
that of its committees and individual directors:-

As per the requirements of the SEBI (LoDR) Independent Directors evaluated the performance of the Non-Independent
Directors, Chairperson, MD. The Board evaluation criteria was circulated to all the Directors and the same is received.

9. INSURANCE

The Company has taken appropriate insurance for its assets against foreseeable perils.

10. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS

There are no significant and material orders passed by the Regulators, courts or Tribunals which would impact the going
concern status and the Company’s future operations.

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

Pursuant to provisions of Section 197 of the Companies Act, 2013, read with the Rule 5 of Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, the names and other particulars of employees along with the ratio of
remuneration of each Director to the median employee’s remuneration and such other details forms part of Directors’ Report
and is Annexed to this Report.

12. VENDOR DEVELOPMENT

This is a continuous process and DCI procures spares and stores on a regular basis from suppliers spread all over the world.
DCI is updating the supplier-base continually. DCI has adopted e-procurement process, as per Govt. of India guidelines,
emphasis was given to facilitate and enable the vendors by way of training support and hand holding support to participate in
the e-procurement processes of the company. DCI has organized a State Level Vendor Development programme in association
with local Micro, Small and & Medium Enterprises (MSME) Office (Visakhapatnam Branch) and has been continuously
participating and interacting with the prospective vendors in most of the vendor development program cum Buyers-Sellers meet
conducted by Ministry of MSME/ National Small Industries Corporation (NSIC). The Company has invited MSME vendors to visit
DCI’s vessels for identification of spares for indigenization. Tenders are published in DCI official website and Central Public
Procurement Portal for wider publicity so that MSMEs can participate. In view that out of the total annual procurement, a major
portion is fuel, which cannot be procured from MSME Vendors and further that since most of dredgers of DCI have been built at
Netherlands and therefore most of the spare need to be imported from OEMs abroad, the Company has represented for
relaxation for implementation of the Public Procurement Policy mandatory provision of 20% procurement from MSMEs.

13. R&D ACTIVITIES

DCI Dredge Aquarius was fitted with an indigenously developed Programmable Logic Controller (PLC) in place of existing PLC
system which was imported and giving frequent problems because of non-availability of spare parts/ services of the Original
Equipment Manufacturer abroad. The newly installed PLC has been found to be cost effective and working satisfactorily.

14. CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Pursuant to the DPE Guidelines and SEBI (LoDR) Regulations, 2015 Management Discussion and Analysis Report, Corporate
Governance Report and Certificate from the Company Secretary in practice regarding compliance of conditions of Corporate
Governance are attached, forming part of this Report.

15. MAN POWER:

The total number of employees (both Shore and Floating) in the Corporation, as on 31^st March, 2023 was as under¬
Shore (Executives 117 & Non-Executives 70) 187

Floating (Regular 85 & Contract 365) 450

Total 637

16. EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

The manpower position with regard to various reserved categories is as indicated hereunder:

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfill its obligation in providing employment opportunities to SC/ST candidates, in
accordance with the Government Policy. The overall representation of SC/STs in the Corporation (both Shore and Floating
Establishments, but excluding MPWs) as on 31^st March, 2023 .

Sl. No	Group	Total Strength	No. of persons with Disabilities actually Employed	Percentage
(1)	(2)	(3)	(5)	(6)
1.	Group ‘A’	117	02	1.71
2.	Group ‘B’	25	01	4
3.	Group ‘C’	36	-
4.	Group ‘D’	09	-	-
	Total	187	03	1.60

17 COMPLIANCE WITH GOVERNMENT’S POLICY ON WOMEN:

Basing on the Supreme Court’s judgment and keeping in view the Government instructions on sexual harassment of women at
work places, a complaints Committee headed by a woman officer was constituted to inquire into the complaints of sexual
harassment at work places. A complaints register is also being maintained.

DCI is a Life Member of the Forum for Women in Public Sector and one women representative from DCI has been nominated to
the above forum. Apart from the Trade Unions, the problems, if any relating particularly to women employees are looked into as and
when the same are brought to the notice of the Management.

18. EXISTING BENEFITS AND WELFARE MEASURES FOR THE WOMEN EMPLOYEES:

i. The women employees of the Corporation, with less than two surviving children are entitled for 26 weeks of Maternity
Leave.

ii. Special Casual leave not exceeding 14 working days is sanctioned to regular women employees of the Corporation to
undergo non- puerperal sterilization.

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

iv. As per Apex Court’s judgment and basing on the Government instructions, a Complaints Committee headed by a Woman
Officer was constituted to inquire into the complaints of Sexual Harassment at work places. A Complaints Register is also
being maintained.

v. Apart from the Trade Unions, the problems, if any, relating particularly to women employees are looked into as and when
the same are brought to the notice of the Management.

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

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

19. OTHER BENEFITS:

Paternity leave of 15 days is allowed to a regular male employee having less than two children, during confinement of his wife, as per
Leave Rules of the Corporation.

20. WAGE SETTLEMENTSA. FLOATING ESTABLISHMENT:

i. New wage agreements in respect of Floating officers is implemented w.e.f. 01.04.2019.

ii. New wage agreements in respect of Floating Petty officers is implemented w.e.f. 01.04.2019.

iii. New wage agreements in respect of Floating crew is implemented w.e.f. 01.04.2019.

B. SHORE ESTABLISHMENT:

i. Pay revision of Executive Employees is implemented w.e.f. 01.01.2017.

ii. The wage revision of Non-Executive employees is implemented w.e.f. 01.01.2017.

21. INDUSTRIAL RELATIONS:

The industrial relations in the Corporation continued to be cordial throughout the year under report.

22. HUMAN RESOURCES DEVELOPMENT

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

• During the year 2022-23, 7 Management Development Programmes were conducted.

23. IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005

As per the Directives of the Government of India, the Corporation implemented The Right to Information Act, 2005 w.e.f. 12.10.2005,
and made all required infrastructural arrangements such as appointment of Public Information Officers, Asst. Public Information
Officers and Appellate Authority; set-up of procedure and submission of periodical reports on the progress of implementation of the
Act. A register is maintained for monitoring the requests from public seeking information and the replies by the concerned are also
being coordinated. Required periodical reports on the implementation of RTI/ Status of RTI replies are being furnished to the Ministry,
CIC from time to time.

24. ACTIVITIES OF PUBLIC GRIEVANCES AND COMPLAINTS CELL:

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the Grievances/Complaints received from the
Public. The Company Secretary is the Director of Public Grievances. As per the Ministry’s guidelines, a status report is being

submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is forwarded to the Ministry.

In line with the Ministry''s direction, a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the
Computer Network in the Corporation, which works in hand-shake mode between the Ministry and the Corporation.

25. WELFARE MEASURES PROVIDED FOR THE EMPLOYEES AND THEIR FAMILY MEMBERS

The Corporation continued various welfare schemes viz., Family Pension Scheme, Group Gratuity Assurance Scheme, Personal
Accident Insurance Coverage, Group Savings Linked Insurance Scheme, Contributory Provident Fund, Maternity Benefit Scheme,
Paternity Leave, Payment of ex-gratia to legal heirs/members of the family of deceased employees, Canteen for projects, Medical
Attendance, Leave Travel Concession, Merit Scholarships for the children of SC/ST employees, Pension Scheme and DCI Retired
Employees Medical Trust/Scheme etc.. Other welfare measures such as Special Casual Leave for maternity/ paternity are extended to
the employees.

26. INFORMATION & FACILITATION COUNTER

In order to ensure transparency in the functioning of the Corporation and also for easy and speedy access for any information to the
public, an INFORMATION & FACILITATION COUNTER (IFC) was setup at DCI Head Office, Visakhapatnam and the same is
publicized in the web-site also.

CITIZEN’S CHARTER

As per the directives of the Government of India, to focus on the commitment of DCI towards its citizens / clients in respect of standard
of services, information, choice and consultation, non-discrimination and accessibility, grievance redress, courtesy and value for
money, including expectations of the Organisation from the citizen/client for fulfilling the commitment of the Organisation, a Citizens’
Charter approved by the Competent Authority was posted on the Corporate website.

As part of requirement thereof, a Task Force has been constituted with representatives from the Management and Staff Unions, as
well as from the Visakhapatnam Port Authority, a local clientele organisation. The Task force attends to the duties as prescribed by the
Department of Administrative Reforms and Public Grievances. The HOD (HR) is designated to be the Nodal Officer to coordinate and
monitor the formulation and implementation of the Citizens Charter in DCI, who also functions as the Member Secretary of the Task
Force.

27. ACTIVITIES AND ACHIEVEMENTS OF VIGILANCE DEPARTMENT

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

1) The Vigilance Awareness Week (VAW) 2022

The Vigilance Awareness Week 2022 was observed at the Corporate Headquarters and various Regional Offices / Project Offices of
Dredging Corporation of India Ltd from 31st October 2022 to 6th November 2022, under the auspices of Central Vigilance
Commission (CVC) to spread awareness against corruption. CVC’s theme for the year 2022 was “Corruption free India for a
developed Nation” with emphasis on spreading awareness in fight against corruption to all sections of Society. In line with the letter
and spirit of the theme and guidelines of CVC, several activities were organized covering a wide spectrum of society, with the aim of
spreading awareness and sensitizing the public about ways and means to fight corrupt practices.

During the VAW-2022, outreach activities were conducted at schools and colleges like debate, essay writing, slogan and painting etc.
We could achieve this with the help of support of the print media and Social media, which gave wide publicity to our activities.

2) Preventive Vigilance

As a measure of preventive vigilance, 2 Periodic and 2 Surprise type inspections and 2 CTE type inspections have been taken up
during the year. The lapses/ irregularities notices in this regard have been communicated for taking remedial/ corrective actions.

3) Systemic Improvements undertaken:

Various Systemic improvement measures were suggested by the Vigilance Department for implementation.

• To stack all the original documents of the properties and keep at safe custody.

• To put the vacant properties such as flats at Kolkata & Mumbai and HO office premises for in use or rented.

• To take appropriate decision on usage of ancillary crafts such as Survey Launch-I, II & III.

28. STATUTORY AUDITORS

M/s.Rao & Kumar Co., Chartered Accountants, Visakhapatnam were appointed by the Comptroller and Auditor General of India as
Statutory Auditors for auditing the accounts of the Company for the financial year 2022-23. Pursuant to Section 142 (1) of the
Companies Act, 2013 the remuneration of the Auditors has to be approved by the Members at the AGM. In the previous AGM the
Audit Committee was authorized to fix the fees payable to the Statutory Auditors. It was recommended authorize the Audit Committee
for fixation of remuneration for statutory auditors for 2023-24.

29. INDEPENDENT AUDITORS’ REPORT

The Independent Auditors’ Report on the Accounts for 2022-23 given by the Statutory Auditors is placed along with the Accounts.
Management Comments to the Emphasis of matters of the Auditors have been given elsewhere in this report.

30. SECRETARIAL AUDIT REPORT

The report of the Secretarial Auditor - Mr. Sachin Agarwal of M/s. Agarwal S. & Associates, pursuant to Section 204 of the
Companies Act, 2013 and rules made thereunder is placed after the Directors report. The comments/replies of the management on
the observations of the Secretarial Auditor has been given elsewhere in this report.

31. C&AG COMMENTS

The Supplementary Audit for the Accounts of the Company for the year ended 31^st March’2023 by Comptroller and Auditor General of
India is complete and is placed along with the accounts along with the replies of the management on the Comments of Comptroller
and Auditor General of India.

32. BUSINESS RESPONSIBILITY REPORT

The Business Responsibility Report for the year ended 31^st March’2023 as required under the SEBI regulations is annexed to the
Directors Report.

33. VOLUNTARY DELISTING FROM CALCUTTA STOCK EXCHANGE

As per the approval of the Board, the Company has applied for Voluntary Delisting of Shares from Calcutta Stock Exchange in June, 2020.
As per the request of the exchange, clarifications have been provided. Confirmation of the delisting is awaited.

34. DIRECTORS & KEY MANAGERIAL PERSONNEL

The Directors recommend for approval of the Members the above appointments/re-appointment of the Directors as proposed in the
Notice to the AGM.

35. ACKNOWLEDGEMENTS

The Directors thank Hon’ble Minister, Hon’ble Minister of State of Ministry of Ports, Shipping and Waterways, its Officers and staff for
the valuable help, assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and co¬
operation extended by them. The Board is grateful to the Comptroller & Auditor General of India, the Member, Audit Board and the
Statutory Auditors for their co-operation. The Board also thanks the Bankers of the Company for their valuable services. The Board
expresses its gratitude to the valued customers for their continued patronage. The Directors place on record their appreciation of the
services rendered by all the employees of the Corporation.

For and on behalf of the Board of Directors

-sd-

Place : Visakhapatnam Dr. Madhaiyaan Angamuthu, IAS

Date : 04.09.2023 Chairman

---

Mar 31, 2022

Your Directors have pleasure in presenting this 46^th Annual Report together with the audited financial statements of the Company for the year ended 31^st March'' 2022.

1. FINANCIAL RESULTS

(? in lakhs)
PARTICULARS	2021-22	2020-21
(I) INCOME
Operations	79,909	76,376
Others	245	316
TOTAL INCOME	80154	76,692
(II) EXPENDITURE
i.) Employees Benefits	9477	10098
ii) Depreciation	12020	11930
iii) Repairs and maintenance (Vessels)	654	5622
iv) Power, Fuel and Lubricants	32565	27950
v) Spares and Stores	3493	6940
vi) Insurance	648	719
vii) Other Expenses	21310	28484
viii) Finance costs	1193	1992
TOTAL EXPENDITURE	81360	93735
Profit before exceptional items and Tax	-1207	-17043
Exceptional Items	1669	-
Profit before Tax	463	-17043

2. ACQUISITION OF NEW DREDGER

We are happy to inform you that Ministry has accorded approval to the recommendations of the Expert Committee constituted for the purpose of procurement of 12000 m3 TSHD dredgers by DCI to be constructed at Cochin Shipyard Limited under the Atma Nirbhar Program - first in 2021, second in 2023 and the procurement of third dredger should be on the basis of analysis of performance of 2 dredgers. The third dredger capacity shall be determined based on gap viability analysis of the market in 2025 to achieve requirements of dredging at Indian Major Ports as envisaged in Maritime Vision 2030. The agreement between Dredging Corporation of India and Cochin Shipyard Limited was signed on 17/03/2022 and tripartite agreement between DCI-CSL-IHC was signed on 13/04/2022. The Cost of the dredger is 104.59 million EURO''s. The first and Second installment was paid on 02/11/2022 and 14/11/2022 respectively.

3. CAPACITY UTILISATION

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

	Target	Actual	% Utilisation
No. of Days	3675	2646.92	72.03%
Quantity (Mln. Cu.M)	667.96	552.68	82.74%

The lower capacity utilization is mainly because of dry-docking and ageing of dredgers.

4. DCI FLEET

The Company has, 10 Trailer Suction Hopper Dredgers (TSHDs), 1 Cutter Suction Dredgers (CSDs), one Back Hoe Dredger and one Inland Cutter Suction Dredger apart from other ancillary crafts.

5. DREDGING OPERATIONS

Important Contracts executed during the Year 2021-22:

1. Maintenance Dredging in the Shipping Channel leading to Haldia Dock Complex in the Hoogly Estuary for the year 2021-22 of Syama Prasad Mookerjee Port Authority.

2. Maintenance dredging of Approach Channel, Entrance Channel, Turning Circle, Docks & Sand Trap of Paradip Port Authority for the year 2021-22.

3. Maintenance Dredging at Cochin Shipyard Limited for the year 2021-22.

4. Dredging for maintenance of Channels and Basins at Cochin Port Authority for the year 2021-22.

5. Maintenance Dredging at New Mangalore Port Authority for the Year 2020-21 & 2021-22.

6. Maintenance Dredging of Naval Channels (Southern Naval Command, Kochi) at Ernakulum for the year 2021-22.

7. Maintenance Dredging at Mormugao Port Authority for the year 2021-22.

New Contracts completed up during the year 2021-22:

1. Maintenance Dredging in the Shipping Channel leading to Haldia Dock Complex in the Hoogly Estuary for the year 2021-22 of Syama Prasad Mookerjee Port Authority.

2. Dredging for maintenance of Channels and Basins at Cochin Port Authority for the year 2021-22.

3. Maintenance Dredging at New Sand Trap (NST) and its approaches and other areas of VPA and to pump the dredged material to the shore by using extended rain bowing through Floating pipeline method for the year 2021-22.

4. Maintenance Dredging of Naval Channels (Southern Naval Command, Kochi) at Ernakulam for the years 2021 -22.

5. Chartering of BH-I to M/s. JP Offshore for Naval Dredging at ENC, Visakhapatnam for the year 2021-22.

6. Land reclamation of NRL COlT plot by pumping of dredged material from sand trap area of Paradip Port Authority for the year 2021-22.

6. SAFETY MANAGEMENT SYSTEM (ISM)

(a) All dredgers (except dumb vessel DCI Dredge XVI11) of DCI hold valid Safety Management Certificate (SMC).

(b) DCI Dredge VIII, DCI Dredge XI, DCI Dredge Aquarius and DCI Multicat-I hold valid Indian Coastal Vessel Safety Certificate.

(c) DCI holds a Document of Compliance (DOC) valid till 24.06.2027. The same is being endorsed every year after annual verification audit by DG Shipping.

SHIP SECURITY SYSTEM (ISPS)

(d) All dredgers (except dumb vessel DCI Dredge XVIII) of DCI hold valid International Ship Security Certificate (ISSC).

(e) DCI Dredge VIII, DCI Dredge XI, DCI Dredge Aquarius and DCI Multicat-I ensure compliance with regard to Ship Security measures as defined in Annex -11 of the Notification for Indian Coastal Vessels.

QUALITY MANAGEMENT SYSTEM (ISO 9001:2015)

(f) DCI is certified for Quality Management System (ISO 9001:2015) and the certificate is valid up to 24th February''2025.

ENVIRONMENT MANAGEMENT SYSTEM (ISO 14001:2015)

(g) DCI is certified for Environmental Management System (ISO 14001:2015) and the certificate is valid up to 12th March, 2025.

7. MEMBERS/ INVESTOR SERVICES

The shares of the Company are listed on Bombay Stock Exchange, Calcutta Stock Exchange and National Stock Exchanges. The shares of the Company are dematerialized with both the depositories, NSDL and CDSL. The tax-free bonds are listed with the Stock Exchange, Mumbai. M/s.KFin Technologies Limited, Hyderabad is the R & T Agents of the Company. M/s.CATALYST TRUSTEESHIP LIMITED (formerly GDA Trusteeship Ltd.), Pune is the Trustee for the Tax free bonds issued in the year 2013-14.

8. THE REQUIRED PARTICULARS ETC., PURSUANT TO SECTION 134 (3) OF THE COMPANIES ACT 2013 ARE AS UNDER: -

a) The extract of the Annual Return as provided under Sub-section (3) of Section 92 of the Companies Act, 2013 in form no. MGT - 9 is hosted on the website of the company http://www.dredge-india.com/investors.html.

b) Number of meetings of the Board: - During the financial year 2021-22 the company has held Seven Board Meetings. Further details are provided in the Corporate Governance Report. The Company has duly constituted Audit Committee, Nomination and Remuneration Committee, stakeholders relationship committee and the details of the same including their constitution, No. of meetings etc., is included in the corporate Governance Report.

c) Directors'' Responsibility Statement: - Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013 your Directors state that:

i) in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with a proper explanation relating to material departures;

ii) the Directors had selected such accounting policies and applied them consistently and made 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 at the end of the financial year and of the profit or loss of the company for that period;

iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities;

iv) the Directors had prepared the Annual Accounts on a going concern basis;

v) the Directors, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively;

vi) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

d) Details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to the Central Government: NIL

e) The independent directors have submitted the required declaration under sub-section (6) of Section 149 with regard to meeting the stated criteria for independence.

f) The Promoters have been continuing with the same remuneration norms as per the provisions in share purchase agreement. The Independent directors are paid sitting fees of ?20000/- for attending each meeting of the board or committee thereof and are not paid any other remuneration. The Part-time official Directors were not paid any remuneration by the Company. The remuneration to Managing Director is within the limits specified in Section 197/198 of the Companies Act and Rules made thereunder. The Company has constituted Nomination and Remuneration committee as per Section 178 consisting of three Independent Directors.

g) Explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made.

(A) THE INDEPENDENT AUDITORS IN THEIR REPORT FOR 2021 -22 HAVE STATED AS UNDER: -Qualified Opinion

We have audited the accompanying standalone Ind AS financial statements of Dredging Corporation of India Limited, Visakhapatnam ("the Company") which comprise the Balance Sheet as at March 31,2022, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information. (Hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to the explanations given to us, except for the effect of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid financial statements give the information required by the Companies Act, 2013 ("the Act'') in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2022 and its profit, changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

a. As described in Note No 29.13 to the financial statements, Company has not determined the retrospective impact of the change in Accounting Policies on the Opening balance of Other Equity and the Current and Previous reporting periods thereby not complying with the measurement and disclosure requirements under Ind AS 8, on Accounting Policies, Changes in Accounting Estimates and Errors. In absence of sufficient and appropriate evidence, we are unable to comment on the impact thereof on the amounts reported in the Financial Statements.

b. As described in Note No 6.1 to the financial statements, Company has not determined the impact of a pending dispute

before the NCLT and a related CBI Investigation involving M/s. Van Oard India Private Limited on the Current reporting period thereby not complying with the measurement and disclosure requirements under Ind AS 37, on Provisions, Contingent Liabilities and Contingent Assets. In absence of sufficient and appropriate evidence, we are unable to comment on the impact thereof on the amounts reported in the Financial Statements.

Emphasis of Matter

We draw attention to;

a. Note No 14.1 to the financial statements regarding amounts receivable from M/s Jawaharlal Nehru Port Authority on account of a disputed recovery made by them.

b. Note No 29.10 to the financial statements which states that Trade Receivables include a sum of ? 6584 lakhs due from M/s Sethusamudram Corporation Limited (SCL) towards works executed during 2005-06 to 2008-09 as has been settled by a committee chaired by Additional Secretary & Financial Advisor, Ministry of Shipping, Government of India (AS & FA Committee).

c. Note No 29.1A to the financial statements regarding Arbitral Award of ? 6047 Lakhs in favour of M/s Mercator Lines Limited (MLL) the awarded amount is shown as contingent Liability. We have relied upon the legal opinions obtained by the Company from Senior Counsels.

d. Note No 29.12 to the financial statements regarding the accounting treatment of Prior Period Items to the tune of ? 692.82 lakhs and the disclosure thereof in the Current and Previous reporting periods.

e. Note No 29.14 to the financial statements which states that Outstanding balances under Trade Payables, Other Payables, Trade Receivables and Advance to Suppliers are subject to reconciliation and confirmations.

Our opinion is not modified in respect of these matters.

Management''s Responsibilities for the Standalone Annual Financial Results

These standalone annual financial results have been prepared on the basis of standalone annual financial statements. The Company''s Board of Directors are responsible for the preparation and presentation of these standalone annual financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standards prescribed under Section 133 of the Act and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes 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 frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone annual financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone annual financial results, the Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the financial reporting process of the Company.

Auditor''s Responsibilities for the Audit of the Standalone Annual Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone annual financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone annual financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone annual financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion through a separate report on the complete set of standalone financial statements on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the standalone annual financial results made by the management.

• Conclude on the appropriateness of the management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone annual financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone annual financial results, including the disclosures, and whether the standalone annual financial results represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matter

Attention is drawn to the fact that the figures for the quarter ended March 31, 2022 and the corresponding quarter ended in the previous year as reported in the Statement are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the end of third quarter of the relevant financial year. Also, the figures up to the end of the third quarter had only been reviewed and not subjected to audit.

h. Particulars of loans, guarantees or investment under Section 186: - details of investment given under the respective head in the financial statement. The Company has not given any loans or guarantees.

i. Particulars of contracts or arrangements with related parties referred to in Section 188 (1) :-In line with the provisions of the Companies Act, 2013 and the SEBI (LODR) Regulations, 2015, the Company has formulated a Policy on materiality of Related Party Transactions and also on dealing with Related Party Transactions. The same has been posted on the website of the Company. The related party transactions of DCI for the year 2021-22 are mainly with other State controlled enterprises. The necessary disclosures with regard to the transactions with the related parties -Promoter Group has been made at Note No. 29 - Additional information on Financial Statements, Sl.No. 18 with heading - Related Party Transactions in the financial statement for the year 2021-22 and the relevant disclosure in Form No. AOC-2 has also been Annexed to the Board Report. During the year under review, apart from what is disclosed, the Company has not entered into financial or other transactions of material nature with its Promoters, the Directors and senior management that may have potential conflict with the interests of the Company at large and/or which are not in normal course of business. There have been no loans/advances/investments or any other transactions with any of the entities in which Directors are interested as per the disclosures given by them coming within the purview and requiring disclosure under related party transaction under the stated Accounting Standard.

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

the amounts, if any, which it proposes to carry to any reserves: The following amounts have been transferred to different reserves during the year: -

i) Tonnage Tax Reserve u/s115VTutilization of the IT Act - ?270Lakhs

ii) Transfer to General Reserve - NIL

iii) Transfer to Debenture Redemption Reserve - NIL

k. In view of the financial position of the company and loan repayment commitments, the Board of directors have not recommended any dividend for the year 2021-22.

l. material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the financial year of the company to which the financial statements relate and the date of the report: Nil

m. the conservation of energy, technology absorption, foreign exchange earnings and outgo:

i) Conservation of energy: The following measures have been taken:

For online fuel monitoring, the Company is in the process of procurement of flow meters during the year for Dredge XII, XIV and XVII.

ii) Continuous efforts are being made to optimize the fuel consumption on board dredgers as cost of fuel constitutes approximately 35-45% of operational cost.

iii) Technology absorption: There was no transfer of technology and consequently there is no absorption of technology during the year.

o) A statement indicating development and implementation of a risk management policy for the company including identification therein of elements of risk, if any, which in the opinion of the Board may threaten the existence of the company:

The Company has in place a Risk Management Policy to drive a common integrated view of risks, optimal risk mitigation responses and efficient management of internal control and assurance activities. The Risk Management Committee has been constituted. The threats, risk and concerns are discussed in the Management Discussion and Analysis Report.

p) the details about the policy developed and implemented by the company on corporate social responsibility initiatives taken during the year:

The Company has in place a Corporate Social Responsibility Committee and a Corporate Social Responsibility and sustainability Policy. During the year 2021-22, the amount required to be spent under CSR is NIL. The particulars of the CSR activities in the prescribed format as required under the Companies Act are given in Annexure.

q) a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors:-

As per the requirements of the SEBI (LoDR) Independent Directors evaluated the performance of the NonIndependent Directors, Chairperson, MD. The Board evaluation criteria was circulated to all the Directors and the same is received.

9. INSURANCE

The Company has taken appropriate insurance for its assets against foreseeable perils.

10. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS

There are no significant and material orders passed by the Regulators, courts or Tribunals which would impact the going concern status and the Company''s future operations.

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

Pursuant to provisions of Section 197 of the Companies Act, 2013, read with the Rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the names and other particulars of employees along with the ratio of remuneration of each Director to the median employee''s remuneration and such other details forms part of Directors'' Report and is Annexed to this Report.

12. VENDOR DEVELOPMENT

This is a continuous process and DCI procures spares and stores on a regular basis from suppliers spread all over the world. DCI is updating the supplier-base continually. DCI has adopted e-procurement process, as per Govt. of India guidelines, emphasis was given to facilitate and enable the vendors by way of training support and hand holding support to participate in the e-procurement processes of the company. DCI has organized a State Level Vendor Development programme in association with local Micro, Small and & Medium Enterprises (MSME) Office (Visakhapatnam Branch) and has been continuously participating and interacting with the prospective vendors in most of the vendor development program cum Buyers-Sellers meet conducted by Ministry of MSME/ National Small Industries Corporation (NSIC). The Company has invited MSME vendors to visit DCI''s vessels for identification of spares for indigenization. Tenders are published in DCI official website and Central Public Procurement Portal for wider publicity so that MSMEs can participate. In view that out of the total annual procurement, a major portion is fuel, which cannot be procured from MSME Vendors and further that since most of dredgers of DCI have been built at Netherlands and therefore most of the spare need to be imported from OEMs abroad, the Company has represented for relaxation for implementation of the Public Procurement Policy mandatory provision of 20% procurement from MSMEs.

13. R&D ACTIVITIES

DCI Dredge Aquarius was fitted with an indigenously developed Programmable Logic Controller (PLC) in place of existing PLC system which was imported and giving frequent problems because of non-availability of spare parts/ services of the Original Equipment Manufacturer abroad. The newly installed PLC has been found to be cost effective and working satisfactorily.

14. CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Pursuant to the DPE Guidelines and SEBI (LoDR) Regulations, 2015 Management Discussion and Analysis Report, Corporate Governance Report and Certificate from the Company Secretary in practice regarding compliance of conditions of Corporate Governance are attached, forming part of this Report.

15. MAN POWER:

The total number of employees (both Shore and Floating) in the Corporation, as on 31^st March, 2022 was as underShore (Executives 127 & Non-Executives 79) 206

Floating (Regular 101 & Contract 331) 432

Total 638

16. EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

The manpower position with regard to various reserved categories is as indicated hereunder:

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfill its obligation in providing employment opportunities to SC/ST candidates, in accordance with the Government Policy. The overall representation of SC/STs in the Corporation (both Shore and Floating Establishments, but excluding MPWs) as on 31^st March, 2022 was SCs 37 and STs 14.

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (Shore based employees) in Group ‘C'' and ‘D'' categories in the Corporation as

on 31^st March, 2022 was Nil as against the percentage of 14.5% and 24.5% respectively as prescribed by the Government.

C. Employment of Physically Handicapped

The number of physically handicapped employees in the Corporation as on 31^st March, 2022 is 4 (Four), the Group-wise break-up A, B, C & D for shore side is furnished below: -

Group	Total Strength	No. of persons with disabilities actually employed	Percentage with reference to identified posts
A	127	03	2.36
B	29	-	-
C	44	01	2.27
D	06	-	-
Total	206	04	1.94

D. Employment of Women

The number of women employees on Rolls as on 31^st March, 2022 is 33 as against 35 as on 31^st March, 2021. Out of them number of executives is 14 and Non-Executives is 19.

17 COMPLIANCE WITH GOVERNMENT’S POLICY ON WOMEN:

Basing on the Supreme Court''s judgment and keeping in view the Government instructions on sexual harassment of women at work places, a complaints Committee headed by a woman officer was constituted to inquire into the complaints of sexual harassment at work places. A complaints register is also being maintained.

DCI is a Life Member of the Forum for Women in Public Sector and one women representative from DCI has been nominated to the above forum. Apart from the Trade Unions, the problems, if any relating particularly to women employees are looked into as and when the same are brought to the notice of the Management.

18. EXISTING BENEFITS AND WELFARE MEASURES FOR THE WOMEN EMPLOYEES:

i. The women employees of the Corporation, with less than two surviving children are entitled for 26 weeks of Maternity Leave.

ii. Special Casual leave not exceeding 14 working days is sanctioned to regular women employees of the Corporation to undergo non- puerperal sterilization.

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

insertions.

iv. As per Apex Court''s judgment and basing on the Government instructions, a Complaints Committee headed by a Woman Officer was constituted to inquire into the complaints of Sexual Harassment at work places. A Complaints Register is also being maintained.

v. DCI is a life member of the Forum for Women in Public Sector and one woman representative from DCI has been nominated to the above forum. Apart from the Trade Unions, the problems, if any relating particularly to women employees are looked into as and when the same are brought to the notice of the management.

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

vii. Working uniforms are provided to Group ''D'' employees, as per the scales prescribed in the Rules.

19. OTHER BENEFITS:

Paternity leave of 15 days is allowed to a regular male employee having less than two children, during confinement of his wife, as per Leave Rules of the Corporation.

20. WAGE SETTLEMENTSA. FLOATING ESTABLISHMENT:

i. New wage agreements in respect of Floating officers is implemented w.e.f. 01.04.2019.

ii. New wage agreements in respect of Floating Petty officers is implemented w.e.f. 01.04.2019.

iii. New wage agreements in respect of Floating crew is implemented w.e.f. 01.04.2019.

B. SHORE ESTABLISHMENT:

i. Pay revision of Executive Employees is implemented w.e.f. 01.01.2017.

ii. The wage revision of Non-Executive employees is implemented w.e.f. 01.01.2017.

21. INDUSTRIAL RELATIONS:

The industrial relations in the Corporation continued to be cordial throughout the year 2021-22.

22. HUMAN RESOURCES DEVELOPMENT

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

i) During the year 2021-22, 5 Management Development Programmes were conducted.

ii) During the year 2021-22, 5 DCCP Apprentice Trainees were inducted for training for a period of 12 months.

23. IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005

As per the Directives of the Government of India, the Corporation implemented The Right to Information Act, 2005 w.e.f. 12.10.2005, and made all required infrastructural arrangements such as appointment of Public Information Officers, Asst. Public Information Officers and Appellate Authority; set-up of procedure and submission of periodical reports on the progress of implementation of the Act. A register is maintained for monitoring the requests from public seeking information and the replies by the concerned are also being coordinated. Required periodical reports on the implementation of RTI/ Status of RTI replies are being furnished to the Ministry, CIC from time to time.

24. ACTIVITIES OF PUBLIC GRIEVANCES AND COMPLAINTS CELL:

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the Grievances/Complaints received from the Public. The Company Secretary is the Director of Public Grievances. As per the Ministry''s guidelines, a status report is being submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is forwarded to the Ministry. In line with the Ministry''s direction, a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the Computer Network in the Corporation, which works in hand-shake mode between the Ministry and the Corporation. Complaints received during the year were suitably replied to.

25. WELFARE MEASURES PROVIDED FOR THE EMPLOYEES AND THEIR FAMILY MEMBERS

The Corporation continued various welfare schemes viz., Family Pension Scheme, Group Gratuity Assurance Scheme, Personal Accident Insurance Coverage, Group Savings Linked Insurance Scheme, Contributory Provident Fund, Maternity Benefit Scheme, Subsidized Canteen Facility, Transport Subsidy, Medical Attendance, Leave Travel Concession, Merit Scholarships for the children of SC/ST employees, Pension Scheme and DCI Retired Employees Medical Trust/Scheme etc. Other welfare measures such as Special Casual Leave for maternity/ paternity are extended to the employees.

Staff Welfare Schemes: Staff Welfare Schemes viz., Car Advance, Two wheeler Advance, Marriage Advance (Children & Self), Children Higher Education Advance, Festival Advance etc., were considered up to 24.09.2017 as per the laid down procedure. The same has been stopped w.e.f. 25.09.2017 due to administrative reasons.

HBA: The scheme was approved. However, the same has not been implemented due to administrative reasons.

Payment of ex-gratia to legal heirs/ members of the family of deceased employees: The same is being complied.

26. INFORMATION & FACILITATION COUNTER

In order to ensure transparency in the functioning of the Corporation and also for easy and speedy access for any information to the public, an INFORMATION & FACILITATION COUNTER (IFC) was setup at DCI Head Office, Visakhapatnam and the same is publicized in the web-site also.

CITIZEN’S CHARTER

As per the directives of the Government of India, to focus on the commitment of DCI towards its citizens / clients in respect of standard of services, information, choice and consultation, non-discrimination and accessibility, grievance redress, courtesy and value for money, including expectations of the Organisation from the citizen/client for fulfilling the commitment of the Organisation, a Citizens'' Charter approved by the Competent Authority was posted on the Corporate website.

As part of requirement thereof, a Task Force has been constituted with representatives from the Management and Staff Unions, as well as from the Visakhapatnam Port Trust, a local clientele organisation. The Task force attends to the duties as prescribed by the Department of Administrative Reforms and Public Grievances. The HoD (HR) is designated to be the

Nodal Officer to coordinate and monitor the formulation and implementation of the Citizens Charter in DCI, who also functions as the Member Secretary of the Task Force.

27. ACTIVITIES AND ACHIEVEMENTS OF VIGILANCE DEPARTMENT

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

The Vigilance Awareness Week 2021 was observed at the Corporate Headquarters and various Project Offices of Dredging Corporation of India Ltd. from 26^th Oct''2021 to 1^st Nov''2021, under the auspices of Central Vigilance Commission (CVC) to spread awareness agaist corruption. CVC''s theme for the year 2021 was “Independent India @ self-reliance with integrity” with emphasis on spreading awareness in fight against corruption to all sections of Society. In line with the letter and spirit of the theme and guidelines of CVC, several activities were organized keeping in view the COVID-19 guidelines. This time we tried to reach people virtually, with the help of technology.

Preventive Vigilance:

i) As a measure of preventive vigilance, 8 Periodic and 4 Surprise type inspections have been taken up during the year. The lapses/ irregularities notices in this regard have been communicated for taking remedial/ corrective actions.

ii) Appointment of IEMs in DCI: Shri P.K.Dash, IAS (Retd.) and Shri Kishore Kumar Sansi, Ex-MD & CEO, Vijaya Bank, have been appointed as Independent External Monitor (IEM). Offer of appointment as IEM were issued to them vide letter dated 28.02.2022.

Systemic Improvements Undertaken:

i) HR dept has been advised to initiate immediate action to amend the Schedule of Powers under Certified Standing Orders (CSO) and conduct Discipline and Appeal (CDA) rules of the Corporation vis-a-vis present set up, in order to eliminate anomaly and incongruity in schedule of powers.

ii) Electronic Measurement Book (e-MB) system has been proposed to be introduced in order to reduce/eliminate the bill payments delay.

iii) Impracticable contract conditions should be modified to take care of unforeseen circumstances.

iv) To appoint suitable personnel to maintain dispatch register properly and also to monitor regularly at regular interval.

28. STATUTORY AUDITORS

M/s.Rao & Kumar Co., Chartered Accountants, Visakhapatnam were appointed by the Comptroller and Auditor General of India as Statutory Auditors for auditing the accounts of the Company for the financial year 2021-22. Pursuant to Section 142 (1) of the Companies Act, 2013 the remuneration of the Auditors has to be approved by the Members at the AGM. In the previous AGM the Audit Committee was authorized to fix the fees payable to the Statutory Auditors. It was recommended authorize the Audit Committee for fixation of remuneration for statutory auditors for 2022-23.

29. INDEPENDENT AUDITORS’ REPORT

The Independent Auditors'' Report on the Accounts for 2021-22 given by the Statutory Auditors is placed along with the Accounts. Management Comments to the Emphasis of matters of the Auditors have been given elsewhere in this report.

30. SECRETARIAL AUDIT REPORT

The report of the Secretarial Auditor - Mr. Sachin Agarwal of M/s.Agarwal & Associates pursuant to Section 204 of the Companies Act, 2013 and rules made thereunder is placed after the Directors report. The comments/replies of the management on the observations of the Secretarial Auditor has been given elsewhere in this report.

31. C&AG COMMENTS

The Supplementary Audit for the Accounts of the Company for the year ended 31^st March''2022 by Comptroller and Auditor General of India is complete and is placed along with the accounts along with the replies of the management on the Comments of Comptroller and Auditor General of India.

32. BUSINESS RESPONSIBILITY REPORT

The Business Responsibility Report for the year ended 31^st March''2022 as required under the SEBI regulations is annexed to the Directors Report.

33. VOLUNTARY DELISTING FROM CALCUTTA STOCK EXCHANGE

As per the approval of the Board, the Company has applied for Voluntary Delisting of Shares from Calcutta Stock Exchange in June, 2020. As per the request of the exchange, clarifications have been provided. Confirmation of the delisting is awaited.

34. DIRECTORS & KEY MANAGERIAL PERSONNEL

The Directors recommend for approval of the Members the above appointments/re-appointment of the Directors as proposed in the Notice to the AGM.

35. ACKNOWLEDGEMENTS

The Directors thank Hon''ble Minister, Hon''ble Minister of State of Ministry of Ports, Shipping and Waterways, its Officers and staff for the valuable help, assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and co-operation extended by them. The Board is grateful to the Comptroller & Auditor General of India, the Member, Audit Board and the Statutory Auditors for their co-operation. The Board also thanks the Bankers of the Company for their valuable services. The Board expresses its gratitude to the valued customers for their continued patronage. The Directors place on record their appreciation of the services rendered by all the employees of the Corporation.

For and on behalf of the Board of Directors

V

Place : Visakhapatnam K. Rama Mohana Rao,IAS

Date : 24/11/2022 Chairman

---

Mar 31, 2018

The Board commends the resolution for approval of the members as ordinary resolution.

Your Directors have pleasure in presenting this 42^nd Annual Report together with the audited accounts of the Company for the year ended 31^st March, 2018.

FINANCIAL RESULTS

The Profit after tax of the Company is Rs,1664.27 lakh for the year as compared to Rs,712.27 lakh for the previous year. The Company''s earnings per share is Rs,5.94 for 2017-18 as compared to Rs,2.54 for 2016-17. The operational income of the Company is Rs,59187.36 lakh as compared to Rs, 58587.17 lakh for the previous year. The other income is Rs,2025.54 lakh as compared to Rs,1381.78 lakh for the previous year. The total income for the year is Rs,61212.90 lakh as compared to Rs,59968.95 lakh for the previous year.

DIVIDEND

Keeping in view the financial performance of the Company and other relevant considerations, your Directors have recommended payment of dividend @ 20% on the paid up capital of the company i.e Rs,2 per equity share amounting to Rs,560 lakh for the year 2017-18.

CAPACITY UTILISATION

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

	Target	Actual	% Utilisation
No. of Days	2771	2459	88.74
Quantity (Mln. Cu.M)	60	47	77.79

DCI FLEET

The Company has, 11 Trailer Suction Hopper Dredgers (TSHDs), 2 Cutter Suction Dredgers (CSDs), one Back Hoe Dredger and one Inland Cutter Suction Dredger apart from other ancillary crafts . Two vessels DCI Dredge VII and DCI Dredge IX have been decommissioned and sold as scrap during the year.

DREDGING OPERATIONS

The Company has secured on tender basis the dredging contract at Haldia/ Kolkata Port for five years from 1/1/2017. The Company has been performing the dredging at the port for the past thirty years. The Company also caters to the maintenance dredging requirements of other major ports/ India Navy etc. The Company is taking up capital dredging assignments depending on the availability of the vessels and other logistic requirements.

During the year under review, maintenance dredging contracts were executed for Kolkata Port, Cochin Port Trust, Cochin Shipyard, RGPPL-Dabhol, Gangavaram, Mumbai Port Trust and New Sand Trap and its approaches of Visakhapatnam Port Trust. Capital Dredging Contracts were executed at Paradip Port, Bangladesh, Andaman and Nicobar island, Puducherry, Gogha and Dahej.

The above works were executed either under the existing contracts or renewal of the contracts entered into with the Ports etc., during the previous years or new contracts entered into during the year.

MEMORANDUM OF UNDERSTANDING

The Company has signed Memorandum of Understanding (MOU) with Government of India for the year 2017-18. The Company is expecting a rating of “Good” for 2017-18.

SAFETY MANAGEMENT SYSTEM (ISM)

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

(b) DCI holds a Document of Compliance (DOC) valid till 24.06.2022. The same is being endorsed every year after annual verification audit by DG Shipping.

SHIP SECURITY SYSTEM (ISPS)

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

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

ENVIRONMENT MANAGEMENT SYSTEM (ISO 14001:2004)

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

ENVIRONMENTAL INITIATIVES :

Implemented ISO 14001: 2015 (Environment Management System.)

Installed Sewage Treatment Plants onboard vessels.

Compliance to MARPOL 73/78 Regulations i.e (lnternational Oil Pollution Prevention,lOPP)

Environmental awareness amongst the employees and floating personnel is being done onboard dredgers, Project offices and Head Office on a regular basis.

MEMBERS/ INVESTOR SERVICES

The shares of the Company are listed on BSE, Calcutta and National Stock Exchanges. The shares of the Company are dematerialised with both the depositories, NSDL and CDSL. The tax free bonds are listed with the Stock Exchange, Mumbai. M/s. Karvy Computershare Private Limited, Hyderabad are the R & T Agents of the Company. M/s CATALYST TRUSTEESHIP LIMITED (formerly GDA Trusteeship Ltd.,) Pune is the Trustee for the Tax free bonds issued in the year 2013-14.

THE REQUIRED PARTICULARS ETC., PURSUANT TO SECTION 134 (3) OF THE COMPANIES ACT 2013 ARE AS UNDER:-

a) The extract of the Annual Return as provided under Sub-section (3) of Section 92 of the Companies Act, 2013 in form no. MGT -

9 is placed as Annexure - 1.

b) Number of meetings of the Board :- During the financial year 2017-18 the company has held six Board Meetings. Further details are provided in the Corporate Governance Report.

c) Directors'' Responsibility Statement : - Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013 your Directors state that :

(i) in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with a proper explanation relating to material departures;

(ii) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for that period;

(iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities;

(iv) the Directors had prepared the Annual Accounts on a going concern basis; and

(v) the Directors, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

(vi) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

d) The Directors of the Company are appointed by Government of India as per the norms pertaining to qualifications etc., prescribed by Government of India. The whole time directors are paid remuneration as prescribed by Government of India from time to time. The Independent directors are paid only sitting fees of ''10000/- for attending each meeting of the board or committee thereof and are not paid any other remuneration. The Part-time official (Government) Directors are not paid any remuneration by the Company. The Key Management personnel are paid as per the norms fixed by the Department of public enterprises from time to time. The Company has constituted Nomination and Remuneration committee as per Section 178 consisting of two Independent Directors and One part-time official Director.

e ) Explanations or comments by the Board on every qualifications, reservation or adverse remark or disclaimer made :-

(A) THE INDEPENDENT AUDITORS IN THEIR REPORT FOR 2017-18 HAVE STATED AS UNDER:-EMPHASIS OF MATTERS:

QUOTE

We draw attention to the following matters in the Notes to the financial statements. Our opinion is not qualified in respect of this matter.

a) Trade Receivables includes Rs,11,433.18 lakhs receivable from M/s Sethusamudram Corporation Ltd.(SCL) which is pending for more than 4 years. Out of the above, Company has provided for doubtful debts to the extent of Rs,3019.27 lakhs. The company is of the view that this will be reimbursed by GOI (at whose behest the contract with SCL was entered) to DCI to compensate the actual expenditure incurred on this project. In view of this, a provision for doubtful debts is not made in respect of receivables in this regard amounting to Rs,8413.91 lakhs. b ) The balances of sundry debtors, creditors, loans and advances, other receivables and other payables being subject to confirmation and reconciliation resulting in the balances as per books of account not verified by us.

UNQUOTE

Management reply to emphasis of matter:

The above emphasis of matters at Sl. (a) include the views of the management on the same.

With regard to balance of sundry debtors etc., at Sl.No. (b) above it is stated that confirmation for some of the amounts, particularly with regard to sundry debtors due from various ports etc., for the works executed by DCI and/or bills raised for the same, are to be received.

(B) OBSERVATIONS MADE BY THE SECRETARIAL AUDITOR:

QUOTE

1. Compliance of Section 149(4) of the Companies Act, 2013, Regulation 17 (1) of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015 and Clause 3.1.4 of the DPE Guidelines on Corporate Governance for Central Public Sector Enterprises w.r.t. composition of the Board of Directors of the Company.

2. Compliance of Regulation 17 (10) & 25 (4) of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015, w.r.t. Performance evaluation of the Directors.

. UNQUOTE

Management’s reply

The Company is a Government of India Undertaking and as per the Articles of Association of the Company, the Directors are to be appointed by the President of India. The issue of appointment of requisite number of independent directors, has been taken up with the administrative Ministry - Ministry of Shipping and the same is pending with them. The performance evaluation of the Whole-time Directors and Part time official Directors is done by the Government of India. The independent Directors have carried out the performance evaluation of the other directors during the independent directors meeting held on 15/3/18.

f) particulars of loans, guarantees or investment under Section 186 :- details of investment given under the respective head in the financial statement. The Company has not given any loans or guarantees.

g) particulars of contracts or arrangements with related parties referred to in Section 188 (1) :- The Company has no contracts or arrangements with related parties referred to in Section 188 (1). In terms of Accounting Standard 18 (Revised-2000), no disclosure is required in the financial statements of State controlled enterprise (An enterprise which is under the control of the Central Government and/or State Government) as regards related party relationships with other State controlled enterprises and transactions with such enterprises. The related party transactions of DCI for the year 2017-18 are mainly with other State controlled enterprises. During the year under review, the Company has not entered into financial or other transactions of material nature with its Promoters, the Directors and senior management that may have potential conflict with the interests of the Company at large and/ or which are not in normal course of business. As such disclosure under Form AOC-2 of Companies (Accounts) Rules 2014 is “NIL”.

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

i) the amounts, if any, which it proposes to carry to any reserves: The following amounts have been transferred to different reserves during the year:-

a) Tonnage Tax Reserve u/s 115VT utilization of the IT Act - Rs,525 Lakhs

b) Transfer to General Reserve - NIL

c) Transfer to Debenture Redemption Reserve - NIL

j) Dividend @20% i.e Rs,2 per equity share is recommended for approval of shareholders at this AGM. The same will be paid within 30 days after the date of declaration. k) material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the financial year of the company to which the financial statements relate and the date of the report: Nil l) the conservation of energy, technology absorption, foreign exchange earnings and outgo:

i) Conservation of energy : The following measures have been taken:

All the dredgers in DCI fleet are installed with sophisticated and state-of-the art instrumentation like Differential Global Positioning System (DGPS) and Draft Volume Load Monitoring (DVLM) system to facilitate efficient dredging with potential energy saving.

- While procuring new dredgers, fuel efficient design with advanced technology is selected.

- Continuous efforts are being made to optimise the fuel consumption on board dredgers as cost of fuel constitutes approximately 35-45% of operational cost.

ii) Technology absorption: There was no transfer of technology and consequently there is no absorption of technology during the year.

Foreign Exchange earnings and outgo:	(Rs, In Lakhs)
i) Foreign Exchange Earnings :	0.00
Total	0.00
ii) Foreign Exchange outgo:
a) Import of components and spares (CIF value)	4676.91
b) Payment of interest on foreign currency loan	1808.23
c) Repayment of installment of foreign currency loan	12680.34
d) Foreign travel	6.73
Total	19172.21

m) a statement indicating development and implementation of a risk management policy for the company including identification therein of elements of risk, if any, which in the opinion of the Board may threaten the existence of the company: The Company has in place a Risk Management Policy to drive a common integrated view of risks, optimal risk mitigation responses and efficient management of internal control and assurance activities. The Risk Management Committee has been constituted. The threats, risk and concerns are discussed in the Management Discussion and Analysis Report.

n) the details about the policy developed and implemented by the company on corporate social responsibility initiatives taken during the year:

The Company has in place a Corporate Social Responsibility Committee and a Corporate Social Responsibility and sustainability Policy. During the year 2017-18, the amount required to be spent under CSR is Rs, 107.03 lakh. Against this, the Company spent Rs,109.42 Lakhs. The particulars of the CSR activities in the prescribed format as required under the Companies Act are given in Annexure -II.

o) a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors;

The Board of Directors of the Company are appointed by Government of India. The administrative Ministry - Ministry of Shipping reviews the performance of the Company on regular basis. The performance reports of the whole time directors are reviewed by the Ministry on Annual basis. The independent Directors have carried out the performance evaluation of the other directors during the independent directors meeting held on 15/3/2018.

DIVIDEND

Keeping in view the financial performance of the Company and other relevant considerations, your Directors have recommended payment of dividend @ 20% on the paid up capital of the company i.e Rs,2 per equity share amounting to Rs, 5.60 Cr. which including dividend tax comes to Rs, 6.74 Cr. for the year 2017-18 and would be paid after the AGM.

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

As per Notification No. GSR 463(E) dated 5/6/2015 issued by 5^th June, 2015 issued by the Ministry of Corporate Affairs, Government Companies are exempted from complying with provisions of Section 197 of the Companies Act, 2013. Therefore, such particulars have not been included as part of Directors'' Report.

VENDOR DEVELOPMENT

This is a continuous process and DCI procures spares and stores on a regular basis from suppliers spread all over the world. DCI is updating the supplier-base continually. DCI has adopted e-procurement process, as per Govt. of India guidelines, emphasis was given to facilitate and enable the vendors by way of training support and hand holding support to participate in the e-procurement processes of the company. DCI has organized a State Level Vendor Development programme in association with local Micro, Small and & Medium Enterprises (MSME) Office(Visakhapatnam Branch) and has been continuously participating and interacting with the prospective vendors in most of the vendor development program cum Buyers- Sellers meet conducted by Ministry of MSME/ National Small Industries Corporation (NSIC) . The Company has invited MSME vendors to visit DCI''s vessels for identification of spares for indigenization. Tenders are published in DCI official website and Central Public Procurement Portal for wider publicity so that MSMEs can participate. In view that out of the total annual procurment, a major portion is fuel, which cannot be procured from MSME Vendors and further that since most of dredgers of DCI have been bult at Netherlands and therefore most of the spare need to be imported from OEMs abroad, the Company has represented for relaxation for implementation of the Public Procrurement Policy mandatory provision of 20% procurement from MSMEs.

R & D ACTIVITIES

DCI Dredge Aquarius was fitted with an indigeniuously developed Programmable Logic Controller (PLC) in place of existing PLC system which was imported and giving frequent problems because of non-availability of spare parts/ services of the Orginal Equipment Manufacturer abroad. The newly installed PLC has been found to be cost effective and working satisfactorily.

CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Pursuant to the DPE Guidelines and SEBI (LoDR) Regulations, 2015 Management Discussion and Analysis Report, Corporate Governance Report and Certificate from the Company Secretary in practice regarding compliance of conditions of Corporate Governance are attached, forming part of this Report.

MAN POWER:

The total number of employees (both Shore and Floating) in the Corporation, as on 31^st March, 2018 was as under:-

Shore	284
Floating - Regular -143, Contract- 369	512
Total	796

EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

The manpower position with regard to various reserved categories is as indicated hereunder:

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfill its obligation in providing employment opportunities to SC/ST candidates, in accordance with the Government Policy. The overall representation of SC/STs in the Corporation (both Shore and Floating Establishments, but excluding MPWs) as on 31^st March, 2018 was sCs - 70, i.e., 16.43% as against prescribed percentage of 16.66% and STs 23 i.e., 5.40% as against the prescribed percentage of 7.5%.

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (both Shore and Floating) (regular employees) in group C and D categories in the Corporation was Nil as against the percentage of 14.5% and 24.5% respectively as prescribed by the Government. However, DCI has been recruiting Ex.Servicemen on its dredgers on contract basis.

C. Employment of Physically Handicapped

The number of physically handicapped employees in the Corporation as on 31^st March, 2018 is 6 (Six), the group-wise break-up A, B, C & D for shore side is furnished below:-

Group	Total Strength	No. of persons with	Percentage with reference to
		disabilities actually Employed	identified to identified posts
A	169	04	2.37
B	32	01	3.13
C	71	01	1.42
D	11	-	-
Total	283	06	2.12

There are no Physically handicapped persons employed on the floating side as it is not permitted.

The Physically handicapped persons are being paid additional conveyance assistance as per the Government instructions.

D. Employment of women

The number of women employees on Rolls as on 31^st March, 2018 is 44 as against 49 as on 31^st March, 2017. Out of them number of executives is 15 and Non-Executives is 29.

Compliance with Government’s Policy on Women:

Basing on the Supreme Court''s judgment and keeping in view the Government instructions on sexual harassment of women at work places, a complaints Committee headed by a woman officer was constituted to inquire into the complaints of sexual harassment at work places. A complaints register is also being maintained.

DCI is a Life Member of the Forum for Women in Public Sector and one women representative from DCI has been nominated to the above forum. Apart from the Trade Unions, the problems, if any, relating particularly to women employees are looked into as and when the same are brought to the notice of the Management.

EXISTING BENEFITS AND WELFARE MEASURES FOR THE WOMEN EMPLOYEES :

i) The women employees of the Corporation, with less than two surviving children are entitled for 26 weeks of Maternity Leave.

ii) Special Casual leave not exceeding 14 working days is sanctioned to regular women employees of the Corporation to undergo non-puerperal sterilization.

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

iv) As per Apex Court''s judgment and basing on the Government instructions, a Complaints Committee headed by a Woman Officer was constituted to inquire into the complaints of Sexual Harassment at work places. A Complaints Register is also being maintained.

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

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

vii) The women employees of DCI are sponsored to various in-house and also external training programmes. Eight women employees had undergone training during the year 2017-18

OTHER BENEFITS:

Paternity leave of 15 days is allowed to a regular male employee having less than two children, during confinement of his wife, as per Leave Rules of the Corporation.

WAGE SETTLEMENTS

A. FLOATING ESTABLISHMENT :

i) The INSA-MUI (FG/HT) Agreement in respect of Floating Officers, for the periods from 2012 to 2015 is revised and implemented w.e.f. 01.04.2014

ii) The NMB Agreement, relating to HT Petty Officers for the periods 2015-19 is revised and implemented w.e.f. 01.04.2015.

iii) The Wage Agreement of Crew/MPWs for the period from 2015-19 is revised and implemented w.e.f. 01.04.2015.

B. SHORE ESTABLISHMENT:

i) Pay revision of Executive Employees is implemented w.e.f. 01.01.2017.

ii) The wage revision of Non-Executive employees is implemented w.e.f. 01.01.2017.

INDUSTRIAL RELATIONS:

The industrial relations in the Corporation continued to be cordial throughout the year 2017-18. The Unions representing the Non-Executives and Crew & Petty Officer of Dredging Corporation of India Limited were on one day strike on 11/4/17 and a three day strike from 20/12/17 to 22/12/17 in protest against the proposed strategic sale by GOI of its holding in the Company in which some of the executive employees also supported by taking leave. Further, the employees also participated in relay hunger strike. However there was no disruption in the operations of the Company.

WELFARE MEASURES:

The Corporation continued various welfare schemes viz., Family Pension Scheme, Group Gratuity Assurance Scheme, Personal Accident Insurance Coverage, Group Savings Linked Insurance Scheme, Contributory Provident Fund, Maternity Benefit Scheme, Subsidised Canteen Facility, Transport Subsidy, Medical Attendance, Leave Travel Concession, Merit Scholarships for the children of SC/ST employees, Pension Scheme and DCI Retired Employees Medical Trust/Scheme etc. Other welfare measures such as Special Casual Leave for maternity/ paternity are extended to the employees. Staff Welfare Schemes viz., Car Advance, Two wheeler Advance, Marriage Advance (Children & Self), Children Higher Education Advance, Festival Advance etc.,are provided to the employees.

HUMAN RESOURCES DEVELOPMENT

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

i) During the year 2017-18, 183 employees were trained in various training programs.

ii) During the year 2017-18, 15 DCCP Apprentice Trainees and 10 Industrial Trainees were inducted for training for a period of 12 months.

IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005

As per the Directives of the Government of India, the Corporation implemented The Right to Information Act, 2005 w.e.f. 12.10.2005, and made all required infrastructural arrangements such as appointment of Public Information Officers, Asst. Public Information Officers and Appellate Authority; set-up of procedure and submission of periodical reports on the progress of implementation of the Act. A register is maintained for monitoring the requests from public seeking information and the replies by the concerned are also being co-ordinate. Required periodical reports on the implementation of RTI/ Status of RTI replies are being furnished to the Ministry, CIC from time to time. ACTIVITIES OF PUBLIC GRIEVANCES AND COMPLAINTS CELL :

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the Grievances/Complaints received from the Public. The Company Secretary is the Director of Public Grievances. As per the Ministry''s guidelines, a status report is being submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is forwarded to the Ministry. In line with the Ministry''s direction, a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the Computer Network in the Corporation, which works in hand-shake mode between the Ministry and the Corporation. Complaints received during the year were suitably replied to.

INFORMATION & FACILITATION COUNTER

In order to ensure transparency in the functioning of the Corporation and also for easy and speedy access for any information to the public, an INFORMATION & FACILITATION COUNTER (IFC) was set up at DCI Head Office, Visakhapatnam and the same is publicized in the web-site also.

PROGRESSIVE USE OF HINDI

The Corporation continued its efforts to implement the Official Language Policy of the Government, an Incentive Scheme to award cash prizes, etc., is in vogue in the Corporation and employees trained under in-service training in Hindi and qualified in various examinations conducted there under are being awarded cash awards.

Various Competitions were conducted for employees and nearby school/College students during the Hindi Week Celebration held from 14-21 ,September, 2017.

The officers of the Corporation actively participated in the meetings and activities of the Town Official Language Implementation Committee, (TOLIC)(UT) Visakhapatnam during the year. 4 Hindi workshops were conducted for employees to impart working skills in drafting & noting in Hindi, and in UNICODE Hindi Typing, operation of Bilingual software’s etc..

Computerization of forms / correspondence and reports in Hindi, was implemented in various departments. Several formats, PF Statements, letter-heads, visiting cards, banners and other items of stationery are printed / made bilingual and the same are made available on the computers. Web-site information was also updated in Hindi. Unicode was installed in various functional Departments. Issue of Office Orders / Circulars, Reports submitted to Government and Parliamentary Committees and Annual Report of the Corporation were ensured in bilingual.

CITIZEN’S CHARTER

As per the directives of the Government of India, to focus on the commitment of DCI towards its citizens / clients in respect of standard of services, information, choice and consultation, non-discrimination and accessibility, grievance redress, courtesy and value for money, including expectations of the Organization from the citizen/client for fulfilling the commitment of the Organization, a Citizens'' Charter approved by the Competent Authority was posted on the Corporate website.

As part of requirement thereof, a Task Force has been constituted with representatives from the Management and Staff Unions, as well as from the Visakhapatnam Port Trust, a local clientele organization. The Task force attends to the duties as prescribed by the Department of Administrative Reforms and Public Grievances. The HoD (HR) is designated to be the Nodal Officer to coordinate and monitor the formulation and implementation of the Citizens Charter in DCI, who also functions as the Member Secretary of the Task Force.

ACTIVITIES OF VIGILANCE DEPARTMENT

As a measure of preventive vigilance, 14 periodic, 16 surprise and 01 CTE type inspections have been taken up during the year. The lapses/ irregularities notices in this regard have been communicated for taking remedial/ corrective actions. The number of vigilance cases pending at the beginning of the year and end of the year is “Nil”. No vigilance cases were initiated during the year.

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

The Vigilance Awareness Week 2017 was observed at the Corporate Headquarters and various Project Offices of Dredging Corporation of India Ltd. from 30^th October 2017 to 4^th November 2017. CVC''s theme for Vigilance Awareness Week 2017 was “My vision- Corruption free India” with emphasis on spreading awareness in fight against corruption to all sections of Society. Painting Competition was organized for the school students in various urban corporate/private schools, urban Govt. /Aided schools in Visakhapatnam. In addition to this, DCI conducted inter-collegiate Essay writing and Elocution competitions in English and Telugu at its Head Office. To create awareness and sensitize public a mass Integrity Pledge was conducted for the citizens including school and college students on 10^th October 2017 at Araku, a tribal village, wherein 2000 citizens took the integrity pledge enthusiastically. Further to spread awareness against corruption amongst the general public, Dredging Corporation of India and Visakhapatnam Port Trust organized Vigilance Awareness Walk. A flash mob depicting the evils of corruption and a signature campaign was initiated at the venue in order to take the integrity pledge by general public.

Systems improvement measures were suggested by the Vigilance department for implementation.

STATUTORY AUDITORS

M/s Tukaram & Co., Chartered Accountants, Hyderabad were appointed by the Comptroller and Auditor General of India as Statutory Auditors for auditing the accounts of the Company for the financial year 2017-18. Pursuant to Section 142 (1) of the Companies Act, 2013 the remuneration of the Auditors has to be approved by the Members at the AGM. The Board recommends the remuneration of Rs,4.50 lakhs plus service tax as applicable for the year 2017-18 as statutory auditors for approval of the Members at this AGM.

INDEPENDENT AUDITORS’ REPORT

The Independent Auditors'' Report on the Accounts for 2017-18 given by the Statutory Auditors is placed along with the Accounts. Management Comments to the Emphasis of matters of the Auditors have been given elsewhere in this report.

SECRETARIAL AUDIT REPORT

The report of the Secretarial Auditor - Mr. Sachin Agarwal of M/s. Agarwal & Associates pursuant to Section 204 of the Companies Act, 2013 and rules made thereunder is placed after the Directors report. The comments/replies of the management on the observations of the Secretarial Auditor has been given elsewhere in this report.

C&AG COMMENTS

The Comptroller and Auditor General of India has issued “NIL”comments on the Accounts of the Company for the year ended 31st March 2018 and the same are placed next the Statutory Auditor''s Report STRATEGIC SALE

The Government of India (“GOI”) has granted an ‘in-principle'' approval for the Strategic disinvestment of DCIL by way of the transfer of management control and sale of 73.47% equity share capital of DCIL held by GOI. In this connection, the GOI acting through Department of Investment & Public Asset Management (DIPAM) has appointed RBSA as its Transaction Advisor (“TA”) and Link Legal as its legal advisor (“LA”) to advise them on the Proposed Transaction and manage the disinvestment process. The Asset Valuers have also been appointed by the Ministry of Shipping.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

As per the Articles of Association of the Company, all the Directors are appointed by the President of India as communicated through the administrative Ministry - Ministry of Shipping.

Shri Pradeep Kumar, IAS was appointed as part-time official Director of the Company and Shri Sanjeev Ranjan, IAS ceased to be director of the Company w.e.f. 29/05/2017 as per Ministry of Shipping vide Letter No. sS-11012/6/2014-SY.II-Part (1) dt 29/05/2017.

Shri Pravir Krishn, IAS and Shri Pradeep Kumar, IAS ceased to be on the Board of Directors of the Company w.e.f. 25/07/2017 and 27/07/2017 respectively as per Ministry of Shipping vide mail dated 31/07/2017.

Ms.Leena Nandan, IAS was appointed as part-time official Director of the Company in place of Shri Pradeep Kumar, IAS as per Ministry of Shipping vide Letter No. SS-11012/6/2014-SY.II-Part (1) dt 03/0820/17.

Shri Satinder Pal Singh, IPS was appointed as Part-time Official Director on the Board of the Company in place Shri Pravir Krishn, IAS w.e.f 28/8/2017 as per Ministry of Shipping Letter No. SS-11012/6/2014-SY.II - Part (1) dt. 28/8/2017.

Shri S. Charles, Director (Finance) ceased to be director of the Company on 14/03/2018 as per Ministry of Shipping letter No. SS-28012/2/ 2013-DCI dt. 28/2/18. Shri Rajesh Tripathi, CMD has been assigned the additional charge of Director (Finance) w.e.f 15/03/2018.

Shri Shambhu Singh, IAS was appointed as Part-time Official Director w.e.f 3/5/18 in place Ms. Leena Nandan, IAS as per Ministry of Shipping vide Letter No. SS-11012/6/2014-SY.II-Part (1) dt 03/05/2018

As per the provisions of Section 152 of the Companies Act, it is proposed to appoint Shri Satinder Pal singh, IPS and Shri Shambhu Singh, IAS as directors on the Board of the Company at the AGM.

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

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

ACKNOWLEDGEMENTS

The Directors thank Hon''ble Minister of Shipping and officers and staff of Ministry of Shipping for the valuable help, assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and co-operation extended by them. The Board is grateful to the Comptroller & Auditor General of India, the Member, Audit Board and the Statutory Auditors for their co-operation. The Board also thanks the Bankers of the Company for their valuable services. The Board expresses its gratitude to the valued customers for their continued patronage.

The Directors place on record their appreciation of the services rendered by all the employees of the Corporation.

For and on behalf of the Board of Directors

Place : Visakhapatnam RAJESH TRIPATHI

Date : 06/07/2018 CHAIRMAN AND MANAGING DIRECTOR

---

Mar 31, 2017

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

FINANCIAL RESULTS

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

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

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

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

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

CAPACITY UTILISATION

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

	Target	Actual	% Utilisation
No.of Days	3425	2273	66.36
Quantity (Mln. Cu.M)	719	519	72.18

CAPACITY ADDITIONS

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

DCI FLEET

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

DREDGING OPERATIONS

The Company has secured on tender basis the dredging contract at Haldia/ Kolkata Port for five years from 1/1/2017. The Company has been performing the dredging at the port for the past thirty years. The Company also caters to the maintenance dredging requirements of other major ports/ India Navy etc. The Company is taking up capital dredging assignments depending on the availability of the vessels and other logistic requirements.

During the year under review, maintenance dredging contracts were executed for Kolkata Port, Cochin Port Trust, Cochin Shipyard, RGPPL-Dabhol and NST and its approaches of VPT. Capital Dredging Contracts were executed at Mormugao Port, Chennai Port, Andaman and Nicobar island, Puducherry, Gogha and Dahej.

The above works were executed either under the existing contracts or renewal of the contracts entered into with the Ports etc., during the previous years or new contracts entered into during the year.

MEMORANDUM OF UNDERSTANDING

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

OFFER FOR SALE TO EMPLOYEES BY GOVERNMENT OF INDIA.

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

SAFETY MANAGEMENT SYSTEM (ISM)

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

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

SHIP SECURITY SYSTEM (ISPS)

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

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

ENVIRONMENT MANAGEMENT SYSTEM (ISO 14001:2004)

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

MEMBERS/ INVESTOR SERVICES

The shares of the Company are listed on BSE, Calcutta and National Stock Exchanges. The shares of the Company are dematerialised with both the depositories, NSDL and CDSL. The tax free bonds are listed with the Stock Exchange, Mumbai.

M/s. Karvy Computershare Private Limited, Hyderabad are the R & T Agents of the Company.

M/s CATALYST TRUSTEESHIP LIMITED (formerly GDA Trusteeship Ltd.,) Pune is the Trustee for the Tax free bonds issued in the year 2013

14.

THE REQUIRED PARTICULARS ETC.. PURSUANT TO SECTION 134 (3) OF THE COMPANIES ACT 2013 ARE AS UNDER:-

a) The extract of the Annual Return as provided under Sub-section (3) of Section 92 of the Companies Act, 2013 in form no. MGT — 9 is placed as Annexure — 1.

b) Number of meetings of the Board :- During the financial year 2016-17 the company has held six Board Meetings. Further details are provided in the Corporate Governance Report.

c) Directors’ Responsibility Statement : - Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013 your Directors state that:

(i) in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with a proper explanation relating to material departures;

(ii) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for that period;

(iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities;

(iv)the Directors had prepared the Annual Accounts on a going concern basis; and

(v) the directors, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

(vi) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

d) The Directors of the Company are appointed by Government of India as per the norms pertaining to qualifications etc., prescribed by Government of India. The whole time directors are paid remuneration as prescribed by Government of India from time to time. The Independent directors are paid only sitting fees of ''10000/- for attending each meeting of the board or committee thereof and are not paid any other remuneration. The Part-time official (Government) Directors are not paid any remuneration by the Company. The Key Management personnel are paid as per the norms fixed by the department of public enterprises from time to time. The Company has constituted Nomination and Remuneration committee as per Section 178 consisting of two Independent Directors and One part-time official Director.

e) Explanations or comments by the Board on every qualifications, reservation or adverse remark or disclaimer made :-

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

EMPHASIS OF MATTERS:

QUOTE

We draw attention to the following matters in the Notes to the financial statements. Our opinion is not qualified in respect of this matter.

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

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

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

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

b) Trade Receivables includes Rs,11,433.18 lakhs receivable from M/s Sethusamudram Corporation Ltd.(SCL) which is pending for more than 4 years. Out of the above, Company has provided for doubtful debts to the extent of Rs,3019.27 lakhs. The company is of the view that this will be reimbursed by GOI (at whose behest the contract with SCL was entered) to DCI to compensate the actual expenditure incurred on this project. In view of this, a provision for doubtful debts is not made in respect of receivables in this regard amounting to Rs,8413.91 lakhs.

c) The balances of sundry debtors, creditors, loans and advances, other receivables and other payables being subject to confirmation and reconciliation resulting in the balances as per books of account not verified by us.

UNQUOTE

Management reply to emphasis of matter:

The above emphasis of matters at Sl. (a), and (b) include the views of the management on the same. With regard balance of sundry debtors etc., at Sl.No. (c) above it is stated that confirmation for some of the amounts, particularly with regard to sundry debtors due from various ports etc., for the works executed by DCI and/or bills raised for the same, are to be received.

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

QUOTE

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

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

Compliance of Regulation 17 (1) of Securities Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations,

2015 and Clause 3.1.4 of the DPE Guidelines on Corporate Governance for Central Public Sector Enterprises w.r.t. composition of the Board of Directors of the Company.’’

UNQUOTE

Management’s reply

The Company is a Government of India Undertaking and as per the Articles of Association of the Company, the Directors are to be appointed by the President of India. The issue of appointment of requisite number of independent directors, has been taken up with the administrative Ministry - Ministry of Shipping and the same is pending with them.

f) particulars of loans, guarantees or investment under Section 186 :- details of investment given under the respective head in the financial statement. The Company has not given any loans or guarantees.

g) particulars of contracts or arrangements with related parties referred to in Section 188 (1) :- The Company has no contracts or arrangements with related parties referred to in Section 188 (1). In terms of Accounting Standard 18 (Revised-2000), no disclosure is required in the financial statements of State controlled enterprise (An enterprise which is under the control of the Central Government and/or State Government) as regards related party relationships with other State controlled enterprises and transactions with such enterprises. The related party transactions of DCI for the year 2016-17 are mainly with other State controlled enterprises. During the year under review, the Company has not entered into financial or other transactions of material nature with its Promoters, the Directors and senior management that may have potential conflict with the interests of the Company at large and/or which are not in normal course of business. As such disclosure under Form AOC-2 of Companies (Accounts) Rules 2014 is “NIL”.

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

h) the amounts, if any, which it proposes to carry to any reserves: The following amounts have been transferred to different reserves during the year:-

a) Tonnage Tax Reserve u/s 115VT uitilisation of the IT Act. - '' 72 Lakhs

b) Transfer to Debenture Redemption Reserve - '' 600 Lakhs

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

j) material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the financial year of the company to which the financial statements relate and the date of the report: Nil k) the conservation of energy, technology absorption, foreign exchange earnings and outgo:

i) Conservation of energy : The following measures have been taken:

- All the dredgers in DCI fleet are installed with sophisticated and state-of-the art instrumentation like Differential Global Positioning System (DGPS) and Draft Volume Load Monitoring (DVLM) system to facilitate efficient dredging with potential energy saving.

- While procuring new dredgers, fuel efficient design with advanced technology is selected.

- Continuous efforts are being made to optimise the fuel consumption on board dredgers as cost of fuel constitutes approximately 35-45% of operational cost.

ii) Technology absorption: There was no transfer of technology and consequently there is no absorption of technology during the yea r.

Foreign Exchange earnings and outgo:	('' In Lakhs)
i. Foreign Exchange Earnings :	0.00
ii) Foreign Exchange outgo:
a) Import of components and spares (CIF value)	5386.13
b) Payment of interest on foreign currency loan	1324.68
c) Repayment of installment of foreign currency loan	12516.15
d) Foreign travel	7.47
Total	19216.43

l) a statement indicating development and implementation of a risk management policy for the company including identification therein of elements of risk, if any, which in the opinion of the Board may threaten the existence of the company:

The Company has in place a Risk Management Policy to drive a common integrated view of risks, optimal risk mitigation responses and efficient management of internal control and assurance activities. The Risk Management Committee has been constituted. The threats, risk and concerns are discussed in the Management Discussion and Analysis Report. m) the details about the policy developed and implemented by the company on corporate social responsibility initiatives taken during the year: The Company has in place a Corporate Social Responsibility Committee and a Corporate Social Responsibility and sustainability Policy. During the year 2016-17, the amount spent under CSR is ''177.62 Lakhs. The particulars of the CSR activities in the prescribed format as required under the Companies Act are given in Annexure —II. n) a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors;

The Board of Directors of the Company are appointed by Government of India. The administrative Ministry — Ministry of Shipping reviews the performance of the Company on regular basis. The performance reports of the whole time directors are reviewed by the Ministry on Annual basis.

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

As per Notification No. GSR 463(E) dated 5/6/2015 issued by 5^th June, 2015 issued by the Ministry of Corporate Affairs, Government Companies are exempted from complying with provisions of Section 197 of the Companies Act, 2013. Therefore, such particulars have not been included as part of Directors’ Report.

VENDOR DEVELOPMENT

This is a continuous process and DCI procures spares and stores on a regular basis from suppliers spread all over the world. DCI is updating the supplier-base continually. DCI has adopted e-procurement process, as per Govt. of India guidelines, emphasis was given to facilitate and enable the vendors by way of training support and hand holding support to participate in the e-procurement processes of the company.

R & D ACTIVITIES

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

CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Pursuant to the DPE Guidelines and SEBI (LoDR) Regulations, 2015 Management Discussion and Analysis Report, Corporate Governance Report and Certificate from the Company Secretary in practice regarding compliance of conditions of Corporate Governance are attached, forming part of this Report.

MAN POWER:

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

EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

The manpower position with regard to various reserved categories is as indicated hereunder:

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfill its obligation in providing employment opportunities to SC/ST candidates, in accordance with the Government Policy. The overall representation of SC/STs in the Corporation (both Shore and Floating Establishments, but excluding MPWs) as on 31^st March, 2017 was sCs - 83, i.e., 32.13% as against prescribed percentage of 16.66% and STs 26 i.e., 9.39% as against the prescribed percentage of 7.5%.

B. Employment of Ex-Servicemen

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

C. Employment of Physically Handicapped

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

Group	Total Strength	No. of persons with disabilities	Percentage with reference to
		actually Employed	identified posts
A	189	05	2.65
B	44	01	2.27
C	78	02	2.56
D	14	1	7.14
Total	325	09	2.77

The Physically handicapped persons are being paid additional conveyance assistance as per the Government instructions.

D. Employment of women

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

Compliance with Government’s Policy on Women:

Basing on the Supreme Court’s judgement and keeping in view the Government instructions on sexual harassment of women at work places, a complaints Committee headed by a woman officer was constituted to inquire into the complaints of sexual harassment at work places. A complaints register is also being maintained.

DCI is a Life Member of the Forum for Women in Public Sector and one women representative from DCI has been nominated to the above forum. Apart from the Trade Unions, the problems, if any, relating particularly to women employees are looked into as and when the same are brought to the notice of the Management.

EXISTING BENEFITS AND WELFARE MEASURES FOR THE WOMEN EMPLOYEES :

i) The women employees in the Corporation are entitled to 180 days of Maternity Leave.

ii) Special Casual leave not exceeding 14 working days is sanctioned to regular women employees of the Corporation to undergo non-puerperal sterilisation.

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

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

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

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

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

viii) The women employees of DCI are sponsored to various in-house and also external training programmes. Eight women employees had undergone training during the year 2016-17.

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

OTHER BENEFITS:

Paternity leave of 15 days is allowed to a regular male employee having less than two children, during confinement of his wife, as per Leave Rules of the Corporation.

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

- Cash Award of ''120/-; and

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

WAGE SETTLEMENTS

A. FLOATING ESTABLISHMENT :

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

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

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

B. SHORE ESTABLISHMENT:

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

INDUSTRIAL RELATIONS:

The industrial relations in the Corporation continued to be cordial throughout the year 2016-17. The Unions representing the Non-Executives and Crew & Petty Officer of Dredging Corporation of India Limited were on one day strike on 11/4/17 in protest against rumors of strategic sale of DCI. However, there was no disruption of any nature on the day to day working of the Company. Further, there was no impact of the Strike on the operations of the DCI vessels and all the operational vessels are in uninterrupted dredging operations. There were no untoward incidents/disruption in any of the offices of the Company or onboard vessels.

WELFARE MEASURES:

The Corporation continued various welfare schemes viz., Family Pension Scheme, Group Gratuity Assurance Scheme, Personal Accident Insurance Coverage, Group Savings Linked Insurance Scheme, Contributory Provident Fund, Maternity Benefit Scheme, Subsidised Canteen Facility, Transport Subsidy, Medical Attendance, Leave Travel Concession, Incentive Scheme for acquiring higher qualifications, Merit Scholarships for the children of SC/ST employees, and Mediclaim medical attendance facility for the retired employees etc. Other welfare measures such as House Building Advance, Special casual leave for maternity/paternity and incentives for adopting small family norms and advances for children’s higher education, marriage and purchase of computer etc., are extended to the employees.

HUMAN RESOURCES DEVELOPMENT

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

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

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

IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT. 2005

As per the Directives of the Government of India, the Corporation implemented the Right to Information Act, 2005 w.e.f. 12.10.2005, and made all required infrastructural arrangements such as appointment of Public Information Officers, Asst. Public Information Officers and Appellate Authority; set-up of procedure and submission of periodical reports on the progress of implementation of the Act. A register is maintained for monitoring the requests from public seeking information and the replies by the concerned are also being co-ordinated. Required periodical reports on the implementation of RTI/ Status of RTI replies are being furnished to the Ministry, CIC from time to time.

ACTIVITIES OF PUBLIC GRIEVANCES AND COMPLAINTS CELL :

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the Grievances/Complaints received from the Public. The Joint General Manager (HSE) is designated as the Director of Public Grievances. As per the Ministry’s guidelines, a status report is being submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is forwarded to the Ministry. In line with the Ministry’s direction, a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the Computer Network in the Corporation, which works in hand-shake mode between the Ministry and the Corporation. Complaints received during the year were suitably replied to.

INFORMATION & FACILITATION COUNTER

In order to ensure transparency in the functioning of the Corporation and also for easy and speedy access for any information to the public, an INFORMATION & FACILITATION COUNTER (IFC) was set up at DCI Head Office, Visakhapatnam and the same is notified in the web-site also.

PROGRESSIVE USE OF HINDI

The Corporation continued its efforts to implement the Official Language Policy of the Government, an Incentive Scheme to award cash prizes, etc., is in vogue in the Corporation and employees trained under in-service training in Hindi and qualified in various examinations conducted thereunder are being awarded cash awards.

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

Computerization of forms / correspondence and reports in Hindi, was implemented in various departments. Several formats, PF Statements, letter-heads, visiting cards, banners and other items of stationery are printed / made bilingual and the same are made available on the computers. Web-site information was also updated in Hindi. Unicode was installed in various functional Departments. Issue of Office Orders / Circulars, Reports submitted to Government and Parliamentary Committees and Annual Report of the Corporation were ensured in bilingual.

CITIZEN’S CHARTER

As per the directives of the Government of India, to focus on the committment of DCI towards its citizens / clients in respect of standard of services, information, choice and consultation, non-discrimination and accessibility, grievance redress, courtesy and value for money, including expectations of the Organisation from the citizen/client for fulfilling the committment of the Organisation, a Citizens’ Charter approved by the Competent Authority was posted on the Corporate website.

As part of requirement thereof, a Task Force has been constituted with representatives from the Management and Staff Unions, as well as from the Visakhapatnam Port Trust, a local clientele organisation. The Task force attends to the duties as prescribed by the Department of Administrative Reforms and Public Grievances. The HoD(HR) is designated to be the Nodal Officer to coordinate and monitor the formulation and implementation of the Citizens Charter in DCI, who also functions as the Member Secretary of the Task Force.

CHANGES IN ACCOUNTING POLICY

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

ACTIVITIES OF VIGILANCE DEPARTMENT

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

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

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

STATUTORY AUDITORS

M/s Tukaram & Co., Chartered Accountants, Hyderabad were appointed by the Comptroller and Auditor General of India as Statutory Auditors for auditing the accounts of the Company for the financial year 2016-17. Pursuant to Section 142 (1) of the Companies Act, 2013 the remuneration of the Auditors has to be approved by the Members at the AGM. The Board recommends the remuneration of ''4.25 lakhs plus service tax as applicable for the year 2016-17 for approval of the Members at this AGM.

INDEPENDENT AUDITORS’ REPORT

The Independent Auditors’ Report on the Accounts for 2016-17 given by the Statutory Auditors is placed along with the Accounts. Management Comments to the Emphasis of matters of the Auditors have been given elsewhere in this report.

SECRETARIAL AUDIT REPORT

The report of the Secretarial Auditor — M/s. Agarwal & Associates pursuant to Section 204 of the Companies Act, 2013 and rules made thereunder is placed after the Directors report. The comments/replies of the management of the qualification of the Secretarial Auditor has been given elsewhere in this report.

C&AG COMMENTS

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

DIRECTORS AND KEY MANAGERIAL PERSONNEL

As per the Articles of Association of the Company, all the Directors are appointed by the President of India as communicated through the administrative Ministry - Ministry of Shipping.

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

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

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

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

ACKNOWLEDGEMENTS

The Directors thank Hon’ble Minister of Shipping and officers and staff of Ministry of Shipping for the valuable help, assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and co-operation extended by them. The Board is grateful to the Comptroller & Auditor General of India, the Member, Audit Board and the Statutory Auditors for their co-operation. The Board also thanks the Bankers of the Company for their valuable services. The Board expresses its gratitude to the valued customers for their continued patronage. The Board expresses its sincere thanks to the Tax authorities for their co-operation. the Board also expresses its sincere thanks to the suppliers and vendors for their support and co-operation.

The Directors place on record their appreciation of the services rendered by all the employees of the Corporation.

For and on behalf of the Board of Directors

Place : Visakhapatnam RAjEsH TriPATHI

Date : 31/07/2017 CHAIRMAN AND MANAGING DIRECTOR

---

Mar 31, 2015

The Directors have pleasure in presenting this 39th Annual Report together with the audited accounts of the Company for the year ended 31st March, 2015.

FINANCIAL RESULTS

The Profit after tax of the Company increased to Rs.6240.84 lakh for the year as compared to Rs.3754.67 lakh for the previous year i.e a rise of 66%

The Company's earnings per share also increased to Rs.22.29 for 2014-15 as compared to Rs.13.41 for 2013-14.

The operational income of the Company is Rs.73496.05 lakh as compared to Rs.77040.86 lakh for the previous year. The other income is Rs.883.25 lakh as compared to Rs.229.41 lakh for the previous year. The total income for the year is Rs.74379.30 lakh as compared to Rs.77270.27 lakh for the previous year.

DIVIDEND

Keeping in view the financial performance of the Company and other relevant considerations, your Directors have recommended payment of dividend @30% on the paid up capital of the company i.e Rs.3 per equity share amounting to Rs.840 lakh for the year 2014-15. A sum of Rs.620.00 lakh has been transferred to General Reserves during the year ended 31/03/2015. CAPACITY UTLISATION

The capacity utilization in number of days and quantity dredged as against the targets during the year is as under:- Target Actual % Utilization No.of Days 3080 3138 102% Quantity (Mln. Cu.M) 67 65 97%

CAPACITY ADDITIONS

In continuation of the steps taken for capacity augmentation, the Company has proposals to purchase two more higher capacity dredgers in 12th Plan 2012-17. The Company is also planning to take up refurbishment of the existing aged Dredgers so as to enhance their life as well as their efficiency. The Company is also planning to take up refurbishment of the existing aged Dredgers so as to enhance their life as well as their efficiency.

The Company is sure that with the ongoing capacity augmentation, the performance will continue to improve over the years to come.

DCI FLEET

The Company has, 12 Trailer Suction Hopper Dredgers (TSHDs), 3 Cutter Suction Dredgers (CSDs) and one Back Hoe Dredger apart from other ancillary crafts. The dredger wise particulars as on date are as under: -

Craft Year of Built Hopper Capacity (Cu.M) Pumping Capacity (Cu.M/hr)

Trailer Suction Hopper Dredger (TSHD)

DCI Dredge VI 1975 3770 -

DCI Dredge VIII 1977 6500 -

DCI Dredge IX 1984 4500 -

DCI Dredge XI 1986 4500 -

DCI Dredge XII 1990 4500 -

DCI Dredge XIV 1991 4500 -

DCI Dredge XV 1999 7400 -

DCI Dredge XVI 2000 7400 -

DCI Dredge XVII 2001 7400 -

DCI Dredge XIX 2012 5500 -

DCI Dredge XX 2013 5500 -

DCI Dredge XXI 2014 5500 -

Cutter Suction Hopper Dredger (CSD)

DCI Dredge VII 1976 - 1000

DCI Dredge Aquarius 1977 - 2000

DCI Dredge-XVIII 2009 - 2000

Back Hoe Dredger

DCI Dredge-BH1 2011 - -

DREDGING OPERATIONS

The Company is catering to the dredging requirements of the Haldia/ Kolkata Port for the past thirty years. The Company also caters to the maintenance dredging requirements of other major ports/ India Navy etc. The Company is taking up capital dredging assignments depending on the availability of the vessels and other logistic requirements.

During the year under review, maintenance dredging contracts were executed for Kolkata Port, Haldia, Kandla, Cochin Port Trust, Ernakulam, RGPPL-Dabhol and NST and its approaches of VPT. Capital Dredging Contracts were executed at Kandla Port, Kamarajar Port and Visakhapatnam Port.

The above works were executed either under the existing contracts or renewal of the contracts entered into with the Ports etc.,

during the previous years or new contracts entered into during the year.

MEMORANDUM OF UNDERSTANDING

The Company has signed Memorandum of Understanding (MOU) with Government of India for the year 2015-16. The Company is expecting a rating of "Good" for 2014-15.

SAFETY MANAGEMENT SYSTEM (ISM)

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

(b) DCI holds a Document of compliance (DOC) valid till 24-06-2017. The same is being endorsed every year after annual verification audit by DG Shipping.

SHIP SECURITY SYSTEM (ISPS)

All dredgers (except dumb vessels Dr. - VII and Dr. - XVIII) and Tug - VII of DCI hold valid International Ship Security Certificates (ISSC).

QUALITY MANAGEMENT SYSTEM (ISO 9001:2008)

DCI is certified for Quality Management System (ISO 9001:2008) and the certificate is valid till 26th February' 2016 and recertification of the same shall be carried out.

ENVIRONMENT MANAGEMENT SYSTEM (ISO 14001:2004)

DCI is certified for Environmental Management System (ISO 14001:2004) and the certificate is valid till 14th March' 2016 and recertification of the same shall be carried out.

MEMBERS/ INVESTOR SERVICES

The shares of the Company are listed on Delhi, Mumbai, Kolkata and National Stock Exchanges. The shares of the Company are dematerialized with both the depositories, NSDL and CDSL. The tax free bonds are listed with the Stock Exchange, Mumbai. M/s. Karvy Computershare Private Limited, Hyderabad are the R & T Agents of the Company. M/s GDA Trusteeship Ltd., Pune is the Trustee for the Tax free bonds issued in the year 2013-14.

BORROWING POWERS

The Members of the company in the 36th AGM held on 28/9/2012 accorded their consent by ordinary resolution to the Board of Directors for borrowing up to Rs.250000 Lakh and also for creation of charge/ provide security for the sums borrowed. The said borrowing powers have been exercised up to 31/3/2013 and the balance as on 31/3/15 is Rs.103865.78 Lakhs. The aggregate of paid-up capital and free reserves of the Company as on 31/3/2015 is Rs.123430 Lakh. Under the provisions of Section 180(1) (c) of the Companies Act, 2013 which were made effective from September 12, 2013, the above powers can be exercised by the Board only with the consent of the shareholders obtained by Special Resolution. Accordingly, for the purpose of enabling the Board for exercising any further borrowing powers as may be required for any further capital acquisition, the Board in its 294th Board Meeting held on 26/5/15 had recommended for approval of the shareholders at the ensuing AGM for authorizing the Board of Directors of the Company (which shall include any Committee which the Board may constitute for the purpose) to borrow from time to time, as it may consider fit, pursuant to Section 180(1)(c) of the Companies Act, 2013, and the Articles of Association of the Company, any sums of money (on such terms and conditions as the Board may deem fit) which together with the moneys already borrowed by the Company (apart from temporary loans obtained from the Company's Bankers in the Ordinary Course of Business), in excess of the aggregate of paid-up capital and free reserves of the Company, that is to say, reserves not set apart for any specific purpose up to a maximum limit of Rs.250000 lakhs as well as for creation of charge on the movable and immovable properties of the Company both present and future, as may be required in respect of such borrowings under Section 180(1) (a).

THE REQUIRED PARTICULARS ETC., PURSUANT TO SECTION 134 (3) OF THE COMPANIES ACT 2013 ARE AS UNDER:-

a) The extract of the Annual Return as provided under Sub-section (3) of Section 92 of the Companies Act, 2013 in Form No. MGT – 9 is placed as Annexure – 1.

b) Number of meetings of the Board :- During the financial year 2014-15 the company has held nine Board Meetings. Further details are provided in the Corporate Governance Report.

c) Directors' Responsibility Statement : - Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013 your Directors state that :

(i) in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with a proper

explanation relating to material departures; (ii) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for that period; (iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities; (iv) the Directors had prepared the Annual Accounts on a going concern basis; (v) the Directors, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively. (vi) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

d) Statement on declaration by the independent directors under section 149(6):- During the year 2014-15, the term of two independent directors (appointed by Government of India w.e.f 11/11/2011) was completed on 10/11/2014. Company does not have any independent Director from 11/11/2014.

e) The Directors of the Company are appointed by Government of India as per the norms pertaining to qualifications etc., prescribed by Government of India. The whole time directors are paid remuneration as prescribed by Government of India from time to time. The Independent directors are paid only sitting fees of Rs.10000/- for attending each meeting of the board or committee thereof and are not paid any other remuneration. The Part-time official Directors are not paid any remuneration by the Company. The Key Managerial personnel are paid as per the norms fixed by the department of public enterprises from time to time. At present the company does not have any independent director. The Company has two non-executive directors. The Constitution of Nomination and Remuneration committee as per Section 178 will take place after the independent directors are appointed by Government of India

f ) explanations or comments by the Board on every qualifications, reservation or adverse remark or disclaimer made :-

(i) The Independent Auditors in their report for 2014-15 have stated as under:-

QUOTE

I. Basis for Qualified Opinion:

The Company had not complied with the provisions of Section 135, 149 (1),149(4) 177 and 178 of the Companies Act, 2013. At this stage, we are unable to comment on the consequential impact of non-compliance of these provisions, if any.

Qualified Opinion:

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified opinion paragraph, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, and its Profit and its cash flows for the year ended on that date.

EMPHASIS OF MATTERS:

We draw attention to the following matters in the Notes to the financial statements:

a) We draw attention to the Note No. VI of the financial statements, where in the Company has made investments in Equity shares amounting to Rs.3,000 lakhs in Sethusamudram Corporation Limited (SCL), a special purpose vehicle was incorporated on 06.1.2004 for developing the Sethusamudram Channel Project. The dredging work at Palk Strait was suspended from 16-07-2009. The management does not consider any diminution in the value of the investment and the same has been carried at cost. With regard to the previous statutory auditors qualification in this respect on the accounts for the financial year 2012-13, National Stock Exchange of India Ltd. (NSE) vide its letter No. NSE/LIST/ 8500 dated 26/12/2014 advised the Company to restate the financial statements for FY 2012-13. In response Company has filed review petition dated 21/01/2015 to the NSE to review its decision.

We were informed that, SEBI has given personal hearing on the review petition filed by the DCI and decision from the SEBI is awaited, hence the provision for diminution on investment is not made.

b) Trade Receivables includes, Rs.11,433.18 lakhs receivable from M/s. Sethusamudram Corporation Ltd. (SCL) which is pending for more than 3 years. Out of the above, Company has provided for doubtful debts to the extent of Rs.3019.27 lakhs. The Company is of the view that an amount of Rs.30897.00 lakhs will be reimbursed by GOI (at whose behest the contract with SCL was entered) to DCI to compensate the actual expenditure incurred on this project. In view of this, a provision for doubtful debts is not made in respect of receivables in this regard amounting to Rs.8413.91 lakhs.

c) DCI acquired Dredge XVIII from Mazagon Dock Limited, Mumbai (MDL) in Jan 2011 with performance Bank Guarantee of Rs.27 cr. Since there were major guarantee defects and MDL has failed to attend the performance defects, BG of Rs.27 cr. has been invoked by the DCI. DCI had entered into new agreement with L&T for Rs.30 cr. to remedy the manufacturing defects and Rs.20 cr. has been capitalized during the current financial year.

d) The balance of sundry debtors, creditors, loans and advances, other receivables and other payables being subject to confirmation and reconciliation resulting in the balances as per books of account not verified by us.

UNQUOTE

Management's reply on Qualified Opinion:-

The Company is a Government of India Undertaking and as per the Articles of Association of the Company, the Directors are to be appointed by the President of India. The qualification is in view of non-appointment of the independent directors and women director by the Government of India in view of which the different committees like Audit Committee, CSR Committee, Stakeholders Committee, Nomination and Remuneration Committee could not be constituted. The issue of appointment of requisite number of independent directors, women director, has been taken up with the administrative Ministry - Ministry of Shipping and the same is pending with them. Constitution of different committees as required under the Act, will be taken up after the appointment of the said Directors by the Ministry of Shipping. The said qualification has no impact on the profit of the Company for the year.

Management's reply Emphasis of matter:- a) As regards equity investment made in Sethusamudram Corporation Ltd (SCL) amounting to Rs.3000 lakhs. National Stock Exchange of India Ltd (NSE) vide its letter no. NSE/LIST/8500 dated 26/12/2014 advised the company to restate the financial statement for FY 2012-13 suitably on the qualifications raised by the then Statutory Auditors of the Company. Aggrieved by the said directions the Company vide its letter no.DCI/CS/E.1/2015 requested SEBI to review its decision appropriately as it would not be correct to consider any diminution in value of the investment as investee company's (SCL) net worth has been increasing over the period as under:

(Rs. in Lakhs)

Financial Years Share Capital Reserves Surplus Net worth

2011-12 74500 5397 79897

2012-13 74500 5602 80102

2013-14 74500 5818 80318

Decision of SEBI on the revision petition is awaited. Pending the final decision of SEBI in this regard, the equity investment in SCL is shown at cost as the management does not consider any diminution in its value.

b) Pursuant to the company claims vide its letter dated 06-06-2012 for the works executed in sethusamudram project, the company is of the view that an amount of Rs.30897 lakhs will be reimbursed by GoI to DCI to compensate the actual expenditure incurred on this project as per the recommendations of the Committee constituted by the Ministry of Shipping. In view of this, provisions for doubtful debts has not been made in respect of receivables in this regard.

c) DCI acquired Dredge XVIII from Mazagon Dock Limited, Mumbai (MDL) in Jan 2011 with performance Bank Guarantee of Rs.27 cr. Since there were major manufacturing defects and MDL was failed to attend the performance guarantee defects, BG of Rs.27 cr. has been invoked by the DCI. DCI had entrusted the job of repairs to another firm for Rs.30 cr. to remedy the manufacturing defects and bring the vessel back to operations. Rs.20 cr. being the expenditure incurred during the current financial year has been capitalized as per the applicable accounting standards.

d) The balances of sundry debtors, creditors, loans and advances, other receivables and other payables are the amounts as at the end of financial year. Confirmation for some of the amounts particularly with regard to sundry debtors are those due from various ports etc., for the works executed by DCI and/or bills raised for the same are to be received.

(ii) The company secretary in practice in his secretarial audit report for 2014-15 stated as under:-

QUOTE

,,,..,, the Board of Directors of the Company is not duly constituted with proper balance of Executive Directors, Non- Executive Directors and Independent Directors. .... The Company does not have any Independent Director and a Woman Director on Board and to that extent has not complied with the statutory requirement.

UNQUOTE Management's reply:-

The Company is a Government of India Undertaking and as per the Articles of Association of the Company, the Directors are to be appointed by the President of India. The issue of appointment of requisite number of independent directors, women director, has been taken up with the administrative Ministry - Ministry of Shipping and the same is pending with them.

g) particulars of loans, guarantees or investment under Section 186 :- details of investment given under the respective head in the financial statement. The Company has not given any loans or guarantees.

h) particulars of contracts or arrangements with related parties referred to in Section 188 (1) :- The Company has no contracts or arrangements with related parties referred to in Section 188 (1). In terms of Accounting Standard 18 (Revised-2000), no disclosure is required in the financial statements of State controlled enterprise (An enterprise which is under the control of the Central Government and/or State Government) as regards related party relationships with other State controlled enterprises and transactions with such enterprises. The related party transactions of DCI for the year 2014-15 are mainly with other State controlled enterprises. During the year under review, the Company has not entered into financial or other transactions of material nature with its Promoters, the Directors and senior management that may have potential conflict with the interests of the Company at large and/or which are not in normal course of business. As such disclosure under Form AOC-2 of Companies (Accounts) Rules 2014 is "NIL".

(i) the state of the company's affairs:-

This has been explained elsewhere in this report.;

(j) the amounts, if any, which it proposes to carry to any reserves: The following amounts have been transferred to different reserves during the year:-

a) Tonnage Tax Reserve u/s 115VT of the IT Act. - Rs,1800 Lakhs

b) Transfer to General Reserve - Rs,620 Lakhs

c) Transfer to Debenture Redemption Reserve - Rs,600 Lakhs.

(k) the amount, if any, which it recommends should be paid by way of dividend: stated elsewhere in this report

(l) material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the financial year of the company to which the financial statements relate and the date of the report: Nil (m) the conservation of energy, technology absorption, foreign exchange earnings and outgo: i) Conservation of energy : The following measures have been taken:

All the dredgers in DCI fleet are installed with sophisticated and state-of-the art instrumentation like Differential Global Positioning System (DGPS) and Draft Volume Load Monitoring (DVLM) system to facilitate efficient dredging with potential energy saving.

While procuring new dredgers, fuel efficient design with advanced technology is selected.

Continuous efforts are being made to optimize the fuel consumption on board dredgers as cost of fuel constitutes approximately 35-45% of operational cost. ii) Import substitution : The Company has been set a target by government of India for indigenization of spares of at least 3 items of of values more than Rs.5 lakhs for the year 2014-15. Agisnt this for the year 2014-15, the Company has indigenized spares for six items procured through and Indian Company - M/s BEML Ltd, Mysore iii) Technology absorption: There was no transfer of technology and consequently there is no absorption of technology during the year.

iv) Research and development: The Company has been set a target by government of India for setting up of Solar and wind power lighting on a cutter section dredger by 31/13/2014. The Company has achieved this target and the solar and wind power system was installed on a Cutter Suction Dredger by 30/09/2014 at an expenditure of Rs.3.5 lakhs.

(n) a statement indicating development and implementation of a risk management policy for the company including identification therein of elements of risk, if any, which in the opinion of the Board may threaten the existence of the company: During the year, your Directors have approved a Risk Management Policy to drive a common integrated view of risks, optimal risk mitigation responses and efficient management of internal control and assurance activities. The Risk Management Committee has been formed in the Board Meeting held in December 2014. The threats, risk and concerns are discussed in the Management Discussion and Analysis Report.

(o) the details about the policy developed and implemented by the company on corporate social responsibility initiatives taken during the year:

The Corporate Social Responsibility Committee has been formed as per the DPE Guidelines, 2010 in the Board Meeting held in the year 2010. As per the requirement of the Companies Act, 2013, Board accorded approval for Corporate Social Responsibility and sustainability Policy of the Company. The same has been hosted on the website of the company. During the year 2014- 15, the Company has spent a total of about Rs.70 Lakh under CSR – Rs.33 lakh towards purchase of medical equipment to KGH hospital and Rs.37 lakhs towards construction of toilets for six Government Schools in Visakhapatnam. The Company has further donated Rs.50 Lakhs to Chief Minister's Relief Fund to provide relief to those affected by HUDHUD Cyclone that struck the Coast of Visakhapatnam in October 2014. The particulars of the CSR activities in the prescribed format as required under the Companies Act are given in Annexure -II

(p) a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors;

The Board of Directors of the Company are appointed by Government of India. The administrative Ministry – Ministry of Shipping reviews the performance of the Company on regular basis. The performance reports of the whole time directors are reviewed by the Ministry on Annual basis.

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

(i) the ratio of the remuneration of each functional director (for 2014-15) to the median remuneration of the employees of the company for the financial year is given below. Other Directors are not paid any remuneration by the Company. Independent Directors are paid only the sitting fees for attending each meeting of the board or Committee thereof.

S. No. Name of the Director Designation Ratio

1. Shri Rajesh Tripathi CMD (w.e.f 02/02/2015) 0.56:1

2. Capt.D.K.Mohanty CMD (upto 31/01/2015) 6.51:1

3. Shri S. Charles DFN (w.e.f 26/12/2014) 0.84:1

4. Shri P. Jayapal DOT (up to 31/05/2015) 4.04:1 (ii) the percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year : As per the policy of the Company, the annual increment in basic pay of the employees of the company is 3%. The Dearness Allowance is increased as per Government Rules. Further Performance Related Payments are paid as per the applicable Rules depending on the performance of the Company and the individual during the relevant year.

(iii) the percentage increase in the median remuneration of employees in the financial year: There is increase in the median remuneration of employees in the financial year by 15.78%

(iv) the number of permanent employees on the rolls of company : 566 as on 31/3/2015

(v) the explanation on the relationship between average increase in remuneration and company performance:

There is no direct co-relation between Company's performance and various element of employee remuneration, except the performance related pay. As stated above, the annual increment of the basic pay of the employees is 3%. The performance related pay is linked to the performance of the employees as per his annual appraisal reports and also the performance of the company as per the Memorandum of Understanding signed with the administrative Ministry – Ministry of Shipping.

(vi) comparison of the remuneration of the Key Managerial Personnel against the performance of the company:

The remuneration of the employees of the Company is as per the guidelines issued by DPE from time to time. The Remuneration consists of two parts – the fixed part which is as per the scale of pay of the employee and the variable part which is related to the performance of the employee as well as the performance of the company.

(vii) variations in the market capitalization of the company, price earnings ratio as at the closing date of the current financial year and previous financial year and percentage increase or decrease in the market quotations of the shares of the company in comparison to the rate at which the company came out with the last public offer:

Market Capitalization P E Ratio Price at which the shares % increase/ decrease in the (Rs.In Cr.) were offered in the last market quotations public offers of the for sale shares of in 2003 - 04 the company (Disinvestment) in compari- son to the rate at which the company came out with the last public offer As on 31/3/2014 667.94 17.79:1 Rs,380/- (-) 37.22%

As on 31/3/2015 1045.80 16.75:1 (-) 1.71%

% increase/ decrease 56.57% (-) 5.84

(viii) average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

As already stated above, the remuneration of the personnel is governed by the DPE guidelines issued in this regard. While the fixed portion has an annual increment of 3%, the variable portion is dependent on the performance of the company and the performance of the employee. There are no exceptional circumstances for increase in the managerial remuneration.

(ix) comparison of the each remuneration of the Key Managerial Personnel against the performance of the company:

S. No. Name of the Key Management Personnel Remuneration in the year (Rs.Iin lakh) % increase/ (decrease)

2014-15 2013-14

1. Rajesh Tripathi, CMD (w.e.f 02/02/2015) 3.74 -- (employed for part of year 2014-15)

2. Capt.D.K.Mohanty, CMD (upto 31/01/2015) 43.15 50.22 - 16%

3. S. Charles, DFN (w.e.f 26/12/2014) 5.57 -- (employed for part of year 2014-15)

4. P. Jayapal, DOT (upto 31/05/2015) 26.82 25.85 3.75%

5 K.Aswini Sreekanth, Company Secretary 12.87 8.83 46%

The above remuneration does not include a) the provision made on actuarial valuation of retirement benefits schemes and provision made during the year towards post retirement benefits. The remuneration of key managerial personnel is in accordance with their terms of employment. Performance related pay is paid to all employees including whole time directors in accordance with Govt. guidelines, which is based on the performance of the company as stipulated in MOU with Ministry and the performance of the individual employee.

(x) the key parameters for any variable component of remuneration availed by the directors :

The key parameter is the rating of the company based on the actual performance of the company vis-a-vis the targets fixed as per the Memorandum of understanding with administrative Ministry – Ministry of shipping.

(xi) the ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year : During the year no employee who is not a director received remuneration in excess of the highest paid director.

(xii) affirmation that the remuneration is as per the remuneration policy of the company :

The remuneration policy of the Company is as per the guidelines issued by Government of India/ Department of Public Enterprises from time to time. The Board of Directors of the Company affirms that the remuneration is as per the remuneration policy of the Company

(xiii) The particulars of employees for the year 2014-15 as required to be disclosed under Rule 5 (2) of the Companies (appointment and remuneration of Managerial Personnel) Rules, 2014 is "NIL" as no employee had earning beyond the limits prescribed therein .

VENDOR DEVELOPMENT

This is a continuous process and DCI procures spares and stores on a regular basis from suppliers spread all over the world. DCI is updating the supplier-base continually.

R & D ACTIVITIES

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

IMPORT SUBSTITUTION

As part of import substitution, the Company has signed agreement with another PSU for design, manufacture and supply of the spare parts indigenously. In the year 2014-15 eight items have been indigenized. This small step would go a long way in reducing the dependence on outside suppliers for spare parts.

CHANGE IN ACCOUNTING POLICY

Based on technical evaluation and confirmation from the builder of the Dredgers, the useful life of Dredgers has been fixed as 25years, instead of 14years as specified in Part C of schedule II of Companies Act, 2013, as per the amended Sub-paragraph (i) of paragraph 3 of Part A of the said schedule, Vide notification No G.S.R 237(E) dated 31-03-2014 issued by MCA of Guide to change in depreciation accounting policy in this regard. It has resulted in increase in the profit after tax by Rs.9754.85lakhs in this year. (of this impact on account of change in useful life as per Schedule-II in respect of other asset was Rs.-89.30lakhs.)

SECRETARIAL AUDIT, CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORTS

Pursuant to the requirements of the Companies Act, Listing Agreement and DPE Guidelines the Secretarial audit Report, Management Discussion and Analysis Report, Corporate Governance Report and Certificate from the Company Secretary in practice regarding compliance of conditions of Corporate Governance are attached, forming part of this Report. The reply to the qualification of the Secretarial auditor regarding non-appointment of independent directors and woman director is given elsewhere in this report.

CEO & CFO CERTIFICATION

Certificate from CEO and CFO pursuant to the provisions of the Clause 49 of the Listing Agreement, for the year under review was placed before the Board of Directors of the Company at its meeting held on 26/5/15. A copy of the certificate on the financial statements for the financial year ended 31st March 2015 is given at Enclosure - A to this report.

MAN POWER:

The total number of employees (both Shore and Floating) in the Corporation, as on 31st March, 2015 was 566, as against 599 during the previous year.

EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

The manpower position with regard to various reserved categories is as indicated hereunder:

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfill its obligation in providing employment opportunities to SC/ST candidates, in accordance with the Government Policy. The overall representation of SC/STs in the Corporation (both Shore and Floating Establishments, but excluding MPWs) as on 31st March, 2015 was SCs - 90, i.e., 18.39% as against prescribed percentage of 16.66% and STs 33 i.e., 12.23% as against the prescribed percentage of 7.5%.

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (both Shore and Floating) in group C and D categories in the Corporation was 1.09% and Nil as against the percentage of 14.5% and 24.5% respectively as prescribed by the Government.

C. Employment of Physically Handicapped

The number of physically handicapped employees in the Corporation as on 31st March, 2015 is 7 (seven), the group-wise break-up A, B, C & D is as furnished hereunder:-

Group Total Strength No. of persons Percentage with with disabilities with reference to actually Employed identified posts

A 178 04 2.24

B 53 01 1.88

C 91 02 2.19

D 15 Nil Nil

Total 337 07 2.07

The Physically handicapped persons are being paid additional conveyance assistance as per the Government instructions.

D. Employment of women

The number of women employees on Rolls as on 31st March, 2015 is 53 as against 57 as on 31st March, 2014. Out of them number of executives is 18 and Non-Executives is 35.

Compliance with Government's Policy on Women:

Basing on the Supreme Court's judgment and keeping in view the Government instructions on sexual harassment of women at work places, a complaints Committee headed by a woman officer was constituted to inquire into the complaints of sexual harassment at work places. A complaints register is also being maintained.

DCI is a Life Member of the Forum for Women in Public Sector and one woman representative from DCI has been nominated to the above forum. Apart from the Trade Unions, the problems, if any, relating particularly to women employees are looked into as and when the same are brought to the notice of the Management.

EXISTING BENEFITS AND WELFARE MEASURES FOR THE WOMEN EMPLOYEES :

i) The women employees in the Corporation are entitled to 180 days of Maternity Leave.

ii) Special Casual leave not exceeding 14 working days is sanctioned to regular women employees of the Corporation to undergo non-puerperal sterilization. iii) One day special casual leave is allowed to the regular women employees of the Corporation who had ICUD insertions. iv) Basing on Apex Court's judgment and keeping in view the Government instructions on Sexual harassment of Women at work places, a Complaints Committee headed by a Woman Officer was constituted to inquire into the complaints of Sexual Harassment at work places.

A Complaints Register is also being maintained.

v) DCI is a Life Member of the Forum for Women in Public Sector and one women representative from DCI has been nominated to the above forum. Apart from the Trade Unions, the problems, if any, relating particularly to women employees are looked into as and when the same are brought to the notice of the Management. vi) As a welfare measure, a Rest Room is provided exclusively for the women employees. vii) Working uniforms are provided to Group'D' women employees, as per the scales prescribed in the Rules. viii) The women employees of DCI are sponsored to various in-house and also external training programmes. Ten women employees had undergone training during the year 2014-15. xi) Women's Day was celebrated on 19.03.2015 in DCI.

WAGE SETTLEMENTS

A. FLOATING ESTABLISHMENT :

i) The INSA-MUI (FG/HT) Agreement in respect of Floating Officers, for the periods from 2012 to 2015 is revised and implemented w.e.f. 01.04.2014 ii) The INSA-NUSI Agreement, relating to HT Petty Officers for the periods 2012-15 has been implemented. iii) The Wage Agreement of Crew/MPWs for the period from 2012-15 has been implemented.

B. SHORE ESTABLISHMENT:

i) The Revised Pay Scales of Executives have been implemented w.e.f. 01.01.2007.

ii) The wage revision of Non-Executive employees in the Shore Establishment has been implemented w.e.f.01.01.2007.

INDUSTRIAL RELATIONS:

The industrial relations in the Corporation continued to be cordial throughout the year under report.

WELFARE MEASURES:

The Corporation continued various welfare schemes viz., Family Pension Scheme, Group Gratuity Assurance Scheme, Personal Accident Insurance Coverage, Group Savings Linked Insurance Scheme, Contributory Provident Fund, Maternity Benefit Scheme, Subsidised Canteen Facility, Transport Subsidy, Medical Attendance, Leave Travel Concession, Incentive Scheme for acquiring higher qualifications, Merit Scholarships for the children of SC/ST employees, and Mediclaim medical attendance facility for the retired employees etc. Other welfare measures such as House Building Advance, HBA Interest Subsidy, HBA Family Security Mutual Fund, Special casual leave for maternity/paternity and incentives for adopting small family norms and advances for children's higher education, marriage and purchase of computer etc., are extended to the employees.

HUMAN RESOURCES DEVELOPMENT

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

i) During the year 2014-15, 114 employees were trained in various training programmes.

ii) During the year 2014-15, 8 DCCP Apprentice Trainees and 8 Industrial Trainees were inducted for training for a period of 12 months. iii) One employee attended advanced Leadership Programme for Public Sector Leadership in the Emerging Global Environment, organized by the IIPA, New Delhi from 02.6.14 to 01.07.14.

IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005

As per the Directives of the Government of India, the Corporation implemented the Right to Information Act, 2005 w.e.f. 12.10.2005, and made all required infrastructural arrangements such as appointment of Public Information Officers, Asst. Public Information Officers and Appellate Authority; set-up of procedure and submission of periodical reports on the progress of implementation of the Act. A register is maintained for monitoring the requests from public seeking information and the replies by the concerned are also being co-ordinated. Required periodical reports on the implementation of RTI/ Status of RTI replies are being furnished to the Ministry, CIC from time to time.

ACTIVITIES OF PUBLIC GRIEVANCES AND COMPLAINTS CELL :

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the Grievances/Complaints received from the Public. The Joint General Manager (HSE) is designated as the Director of Public Grievances. As per the Ministry's guidelines, a status report is being submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is forwarded to the Ministry. In line with the Ministry's direction, a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the Computer Network in the Corporation, which works in hand-shake mode between the Ministry and the Corporation. Complaints received during the year were suitably replied to.

INFORMATION & FACILITATION COUNTER

In order to ensure transparency in the functioning of the Corporation and also for easy and speedy access for any information to the public, an INFORMATION & FACILITATION COUNTER (IFC) was set up at DCI Head Office, Visakhapatnam and the same is notified in the web-site also.

PROGRESSIVE USE OF HINDI

i) The Corporation continued its efforts to implement the Official Language Policy of the Government. An Incentive Scheme to award cash prizes, etc., is in vogue in the Corporation and employees trained under inservice training in Hindi and qualified in various examinations conducted thereunder are being awarded cash awards.

ii) Hindi week was celebrated during September 2014. Table Training / work-shop was arranged for employees to impart working skills drafting & noting in Hindi, and operation of Bilingual software.

iii) Computerisation of forms / correspondence and reports in Hindi, was implemented in various departments. Several formats, salary slips, PF Statements, letter-heads, visiting cards, banners and other items of stationery were got printed / made bilingual and the same were made available on the computers. Web-site information was also updated in Hindi. Unicode was installed in various functional Departments.

iv) Issue of Office Orders / Circulars, Reports submitted to Government and Parliamentary Committees was ensured in bilingual. ISM Policy, ISM Code, all ISM Manuals, Safety Instructions, etc., were translated into Hindi and subsequent amendments are being updated from time to time. Correspondence in Hindi was extended to some more areas of work - such as, RTI and Public Grievances.

v) The Chairman, Town Official Language Implementation Committee (TOLIC), Visakhapatnam has awarded an Official Language Shield to CMD, DCI for excellent implementation of Hindi/Official Language Policy in the Corporation. The officers of the Corporation actively participated in the meetings and activities of the Town Official Language Implementation Committee, Visakhapatnam during the year.

CITIZEN'S CHARTER

As per the directives of the Government of India, to focus on the commitment of DCI towards its citizens / clients in respect of standard of services, information, choice and consultation, non-discrimination and accessibility, grievance redress, courtesy and value for money, including expectations of the Organization from the citizen/client for fulfilling the commitment of the Organization, a Citizens' Charter approved by the Competent Authority was posted on the Corporate website.

As part of requirement thereof, a Task Force has been re-constituted with representatives from the Management and Staff Unions, as well as from the Visakhapatnam Port Trust, a local clientele organization. The Task force attends to the duties as prescribed by the Department of Administrative Reforms and Public Grievances. The HoD (HR) is designated to be the Nodal Officer to coordinate and monitor the formulation and implementation of the Citizens Charter in DCI, who also functions as the Member Secretary of the Task Force.

ACTIVITIES OF VIGILANCE DEPARTMENT

During the year 2014-15, the Vigilance department has taken significant measures to integrate its activities with other departments of the Corporation and provide a pro-active orientation to interface it with managerial process. As a part of the same, periodic, surprise and CTE type inspections have been carried out and systemic deficiencies and irregularities noticed have been communicated to concerned departments for necessary action.

As a result of inspections, during the period under review, the disciplinary authority has ordered minor and major penalty proceedings against officers and issue of advisory memos.

Vigilance Awareness week was observed during 27th October 2014 to 31st October, 2014. Vigilance web page on the Company's website has been redesigned incorporating various aspects of vigilance, besides launching of online complaint system. Quarterly Vigilance Bulletin "Alert" is being published for dissemination of the latest information and knowledge on vigilance.

As a part of management education, illuminating articles on management & leadership are being circulated at regular intervals.

Training programs on various matters were being held regularly.

DISINVESTMENT

The Government of India has disinvested 5% of paid up capital of Rs.28 Crore in August 2015 through Stock Exchange Mechanism (OFS). Post disinvestment, the holding of Government of India in the paid up share capital of the company has come to 73.56% against 78.56% earlier.

STATUTORY AUDITORS

M/s Tukaram & Co., Chartered Accountants, Hyderabad were appointed by the Comptroller and Auditor General of India as Statutory Auditors for auditing the accounts of the Company for the financial year 2014-15. Pursuant to Section 142 (1) of the Companies Act, 2013 the remuneration of the Auditors has to be approved by the Members at the AGM. The Board recommends the remuneration of Rs.3.50 lakhs plus service tax as applicable for the year 2014-15 for approval of the Members at this AGM.

INDEPENDENT AUDITORS' REPORT

The Independent Auditors' Report on the Accounts for 2014-15 given by the Statutory Auditors is placed along with the Accounts. Reply to the Qualified Opinion etc., of the Auditors have been given elsewhere in this report.

C&AG COMMENTS

The Comptroller and Auditor General of India has issued "NIL" Comments on the Accounts of the Company for the year ended 31st March, 2015 and the same are placed next to the Statutory Auditor's Report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

As per the Articles of Association of the Company, all the Directors are appointed by the President of India as communicated through the administrative Ministry - Ministry of Shipping.

Ministry of Shipping vide its letter dated 22/12/2014 communicated appointment of Shri S. Charles, as Director (Finance) of the Company. Shri S. Charles has taken over charge as Director (Finance) (DFN) and also as CFO of the Company w.e.f. 26/12/2014.

Ministry of Shipping vide its letter dated 20/01/2015 communicated appointment of Shri Barun Mitra as Part-time Official Director of the Company. Shri Barun Mitra has taken over charge as Part-time Official Director of the Company w.e.f. 20/01/2015.

Ministry of Shipping vide its letter dated 04/12/2014 communicated appointment of Shri Rajesh Tripathi as Chairman and Managing

Director of the Company. Shri Rajesh Tripathi has taken over charge as Chairman and Managing Director (CMD) of the Company and also as CEO of the Company w.e.f. 02/02/2015.

Mnistry of Shipping vide its letter dated 08/05/2015 communicated appointment of Shri M. S. Rao as Director (Operations & Technical) of the Company. Shri M. S. Rao has taken over charge as Director (Operations & Technical) of the Company w.e.f. 01/ 06/2015.

Shri K.Aswini Sreekanth, Company Secretary has been appointed as the Key Managerial Personnel as per the provisions of the Companies Act, 2013 w.e.f 28/5/2014

Pursuant to the provisions of the Companies Act and Articles of Association, the directors have first been appointed as additional directors by the Board and hold office till the date of this AGM. The proposal for appointment of the directors - Shri S. Charles, Shri Barun Mitra, Shri Rajesh Tripathi and Shri M.S.Rao is submitted for approval of Members in the Annual General Meeting.

ACKNOWLEDGEMENTS

The Directors thank Hon'ble Minister of Shipping and officers and staff of Ministry of Shipping for the valuable help, assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and co-operation extended by them. The Board is grateful to the Comptroller & Auditor General of India, the Member, Audit Board and the Statutory Auditors for their co- operation. The Board also thanks the Bankers of the Company for their valuable services. The Board expresses its gratitude to the valued customers for their continued patronage.

The Directors place on record their appreciation of the services rendered by all the employees of the Corporation.

For and on behalf of the Board of Directors

sd/-

Place : Visakhapatnam RAJESH TRIPATHI

Date : 27/08/2015

CHAIRMAN AND MANAGING DIRECTOR

---

Mar 31, 2013

The Directors have pleasure in presenting this 37th Annual Report together with the audited accounts of the Company for the year ended 31st March'' 2013.

CAPACITY AUGMENTATION

The long wait for capacity augmentation is finally over with the first and the second of the three state of the art Trailer Suction Hopper dredgers of 5500 Cu.M Hopper Capacity each ordered in 2010- DCI Dr.XIX and DCI Dr.XX'' joining the fleet in December'' 2012 and July '' 2013 respectively. The third dredger is expected to join the fleet in February'' 2014. The addition of these dredgers will help the Company to meet the dredging commitments at various ports in an unhindered way as well as enable the Company to take up refurbishment of the existing aged dredgers so as to enhance their life as well as their efficiency.

In continuation of the steps taken for capacity augmentation'' the Company proposes to order two 9000 Cu.M Hopper capacity TSHDs during the current 12th Plan period 2012-2017. The Company is sure that with the ongoing capacity augmentation'' the performance will continue to improve over the years to come. The Company is having discussions with Ports for part financing the proposed new Dredgers

TAX FREE BONDS

During the year vide notification No. 46/2012F.No. 178/60/2012-(ITA.1) dated 6th November'' 2012'' Ministry of Finance'' Govt. of India'' authorised the Company to issue tax-free'' secured'' redeemable'' non convertible bonds to an extent of Rs.50000 lakhs for financing the capital acquisition plans. The public issue of the said Tax free Bonds was in March 2013'' and the Company mobilized an amount of Rs.5887.80 lakhs. The amount raised has been utilised for part payment of the third dredger - DCI Dr. XXI . The tenure of the bonds is 10 years. The coupon rate ID is 6.97% p.a. and additional coupon rate of 0.5% for original allottees of retail individual investors category. The Bonds are fully secured by way of charge of movable property in terms of the approval of the Ministry of Corporate Affairs'' Government of India vide letter No. 07/01/2012-CL-VI dated 18/02/2013.

FINANCIAL RESULTS

The year witnessed 31% growth in the operations of the company with the operational income increasing to Rs.63491.60 lakh as compared to Rs.48469.02 lakh for the previous year. The other income is Rs.310.38 lakh as compared to Rs.1292.47 lakh for the previous year.

The total income for the year is Rs.63801.98 lakh as compared to Rs.49761.49 lakh for the previous year. Profit after tax increased to Rs.2050.90 lakh as compared to Rs.1318.10 lakh for the previous year i.e a rise of 56% The Company''s earning per share for 2012-2013 is Rs.7.32 as compared to Rs.4.71 for the previous year.

DIVIDEND

Keeping in view the financial performance of the Company and other relevant considerations'' your Directors have recommended payment of dividend @ 20% on the paid up capital of the company i.e Rs.2 per equity share amounting to Rs.655.20 lakh including dividend tax of Rs.95.20 lakh for the year 2012-13. A sum of Rs.160.00 lakh has been transferred to General Reserves for the year ended 31/03/2013.

DCI FLEET

The Company has'' 11 Trailer Suction Hopper Dredgers (TSHDs)'' 3 Cutter Suction Dredgers (CSD) and one Back Hoe Dredger apart from other ancillary crafts. One more TSHD has joined the fleet in July'' 2013. Ministry has given approval in March 2013 for de- commissioning and disposal of the vessel Dredge V as scrap. The vessel is decommissioned in July'' 2013 and the sale will be completed during the year. The dredger wise particulars as on date are as under: -

Craft Year of Built Hopper Capacity (Cu.M) Pumping Capacity (Cu.M/hr)

Trailer suction Hopper Dredger (TSHD)

DCI Dredge VI 1975 3770

DCI Dredge VIII 1977 6500

DCI Dredge IX 1984 4500

DCI Dredge XI 1986 4500

DCI Dredge XII 1990 4500

DCI Dredge XIV 1991 4500

DCI Dredge XV 1999 7400

DCI Dredge XVI 2000 7400

DCI Dredge XVII 2001 7400 DCI Dredge XIX 2012 5500

DCI Dredge XX 2013 5500

Cutter suction Hopper Dredger (CSD)

DCI Dredge VII 1976 1000

DCI Dredge Aquarius 1977 2000

DCI Dredge-XVIII 2009 2000

Back Hoe Dredger

DCI Dredge-BH1 2011

DREDGING OPERATIONS

The Company is catering to the dredging requirements of the Haldia/ Kolkata Port for the past thirty years. The Company also caters to the maintenance dredging requirements of other major ports/ India Navy etc. The Company is taking up capital dredging assignments depending on the availability of the vessels and other logistic requirements.

During the year under review'' maintenance dredging contracts were executed for Kolkata Port'' Visakhapatnam Port Trust'' Gangavaram Port'' Cochin Port'' Kandla Port and Chettinadu Coal Terminal at Ennore. Capital Dredging Contracts were executed at Paradip Port'' Ennore Port'' Cochin Port and Kandla Port. The long pending dredging works at the ICTT of Cochin Port Trust was successfully completed and the eontainer terminal was fully commissioned.

The above works were executed either under the existing contracts or renewal of the contracts entered into with the Ports etc.'' during the previous years or new contracts entered into during the year.

CAPACITY UTILISATION

The capacity utilisation in number of days and quantity dredged as against the targets during the year is as under:- Target Actual % Utilisation No. of Days 3376 2956 88% Quantity (Lakh Cu.M) 741 593 80%

MEMORANDUM OF UNDERSTANDING

The Company has signed Memorandum of Understanding (MOU) with Government of India for the year 2013-14. The Company is expecting a rating of "Very Good” for 2012-13.

INTERNATIONAL SAFETY MANAGEMENT (ISM) CODE

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

(b) DCI holds a Document of compliance (DOC) valid till 24-06-2017. The same is being endorsed every year after annual verification audit by DG Shipping.

SHIP SECURITY SYSTEM (ISPS)

All dredgers (except dumb vessels Dr. - VII and Dr. - XVIII) and Tug - VII of DCI hold valid International Ship Security Certificates (ISSC).

QUALITY MANAGEMENT SYSTEM (ISO 9001:2008)

DCI is certified for Quality Management System (ISO 9001:2008) and the certificate is valid up to 26th February'' 2016.The QMS surveillance audit is being carried out every year by IRQS as part of certification of the system.

ENVIRONMENT MANAGEMENT SYSTEM (ISO 14001:2004)

DCI is certified for Environmental Management System (ISO 14001:2004) and the certificate is valid up to 14th March'' 2016.The EMS surveillance audit is being carried out every year by IRQS as part of certification of the system.

MEMBERS/ INVESTOR SERVICES

The shares of the Company are listed on Delhi'' Mumbai'' Calcutta and National Stock Exchanges. The shares of the Company are dematerialised with both the depositories'' NSDL and CDSL. The tax free bonds are listed with the Stock Exchange'' Mumbai. M/s. Karvy Computershare Private Limited'' Hyderabad are the R & T Agents of the Company.

PARTICULARS OF THE EMPLOYEES UNDER SECTION 217 (2A) OF THE COMPANIES ACT'' 1956:

The particulars of employees for the year 2012-13 as required under Sec. 217 (2A) of the Companies Act'' 1956 is "Nil” as no employee earned a salary of Rs.60 lakhs per annum or Rs.5 lakh per month during the year 2012-13. DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to the provisions of sub-section (2AA) of Section 217 of the Companies Act'' 1956 your Directors confirm:

(i) that in the preparation of the Annual Accounts'' the applicable accounting standards had been followed along with a proper explanation relating to material departures; (ii) that the Directors had 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 at the end of the financial year and of the profit or loss of the company for that period; (iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities; (iv) that the Directors had prepared the Annual Accounts on a going concern basis.

INFORMATION TO BE GIVEN UNDER COMPANIES'' (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES'' 1988.

a) Conservation of energy under Sec.217(1)(e): Your Company does not fall under the category of companies which are required to furnish this information. However'' the following measures have been taken: i) All the dredgers in DCI fleet are installed with sophisticated and state-of-the art instrumentation like Differential Global

Positioning System (DGPS) and Draft Volume Load Monitoring (DVLM) system to facilitate efficient dredging with potential energy saving. ii) While procuring new dredgers'' fuel efficient design with advanced technology is selected. iii) Continuous efforts are being made to optimise the fuel consumption on board dredgers as cost of fuel constitutes approximately 35-40% of operational cost.

b) Technology absorption under Section 217 (1) (e): There was no transfer of technology and consequently there is no absorption of technology during the year.

c) Foreign Exchange earnings and outgo Under Section 217 (1)(e):

(Rs. In Lakhs)

i) Foreign Exchange Earnings : 0.00

Total 0.00

ii) Foreign Exchange outgo:

a) Import of components and spares (CIF value) 5504.43

b) Payment of interest on foreign currency loan 146.84

c) Foreign travel 26.57

Total 5677.84

IMPORT SUBSTITUTION

The Company has initiated action for design and manufacture of the spare parts indigenously in collaboration with another PSU.

CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Pursuant to the DPE Guidelines and Clause 49 of the Listing Agreement with the Stock Exchanges'' Management Discussion and Analysis Report'' Corporate Governance Report and Certificate from the Company Secretary in practice regarding compliance of conditions of Corporate Governance are attached'' forming part of this Report.

MAN POWER:

The total number of employees (both Shore and Floating) in the Corporation'' as on 31st March'' 2013 was 620'' as against 629 during the previous year.

EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

The manpower position with regard to various reserved categories is as indicated hereunder:

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfill its obligation in providing employment opportunities to SC/ST candidates'' in accordance with the Government Policy. The overall representation of SC/STs in the Corporation (both Shore and Floating Establishments'' but excluding MPWs) as on 31st March'' 2013 was SCs - 97'' i.e.'' 15.65 % as against prescribed percentage of 16.66% and STs 31 i.e.'' 5% as against the prescribed percentage of 7.5%.

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (both Shore and Floating) in group C and D categories in the Corporation was 10.39% and Nil as against the percentage of 14.50% and 24.50% respectively as prescribed by the Government.

C. Employment of Physically Handicapped

The number of physically handicapped employees in the Corporation as on 31st March'' 2013 is 7 (seven)'' the group-wise break-up A'' B'' C & D is as furnished hereunder:-

Group Sanctioned strength Persons in position No.of persons with Percentage with in identified posts disabi lities actually reference to employed in identi fied posts identified posts

A 181 33 2 6.06

B 81 44 2 4.54

C 78 71 3 4.22

D 08 05 Nil Nil

Total 348 153 07 4.57

The overall percentage of Group ''A'' &'' B'' posts comes to 5.19% of the identified posts in these Groups'' which is higher than the prescribed 3%. The overall percentage of Group ''C'' and ''D'' posts comes to 3.95% of the total sanctioned strength in these groups which is higher than the prescribed 3%. The Physically handicapped persons are being paid additional conveyance assistance as per the Government instructions.

D. Employment of women

The number of women employees on Rolls as on 31st March'' 2013 is 57 as against 45 as on 31st March'' 2012. Out of them number of executives is 14 and Non-Executives is 43.

Compliance with Government''s Policy on Women:

Basing on the Supreme Court''s judgement and keeping in view the Government instructions on sexual harassment of women at work places'' a complaints Committee headed by a woman officer was constituted to inquire into the complaints of sexual harassment at work places. A complaints register is also being maintained. DCI is a Life Member of the Forum for Women in Public Sector and one women representative from DCI has been nominated to the above forum. Apart from the Trade Unions'' the problems'' if any'' relating particularly to women employees are looked into as and when the same are brought to the notice of the Management.

EXISTING BENEFITS AND WELFARE MEASURES FOR THE WOMEN EMPLOYEES :

i) The women employees in the Corporation are entitled to 180 days of Maternity Leave.

ii) Special Casual leave not exceeding 14 working days is sanctioned to regular women employees of the Corporation to undergo non- puerperal sterilisation.

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

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

v) DCI is a Life Member of the Forum for Women in Public Sector and one women representative from DCI has been nominated to the above forum. Apart from the Trade Unions'' the problems'' if any'' relating particularly to women employees are looked into as and when the same are brought to the notice of the Management.

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

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

vii) The women employees of DCI are sponsored to various in-house and also external training programmes. Out of 57 women employees'' 18 had undergone training during the year 2012-13.

viii) Women''s Day was celebrated on 08.03.2013 in DCI.

WAGE SETTLEMENTS

A. FLOATING ESTABLISHMENT :

i) The INSA-MUI (FG/HT ) Agreement in respect of Floating Officers'' for the periods from 2012 to 2014 is due for revision w.e.f. 01.04.2012. ii) The INSA-NUSI Agreement'' relating to HT Petty Officers for the periods 2012-15 has been implemented. iii) The Wage Agreement of Crew/MPWs for the period from 2012-15 has been implemented.

B. SHORE ESTABLISHMENT:

i) The Revised Pay Scales of Executives have been implemented w.e.f. 01.01.2007.

ii) The wage revision of Non-Executive employees in the Shore Establishment has been implemented w.e.f.01.01.2007.

INDUSTRIAL RELATIONS:

The industrial relations in the Corporation continued to be cordial throughout the year under report.

WELFARE MEASURES:

The Corporation continued various welfare schemes viz.'' Family Pension Scheme'' Group Gratuity Assurance Scheme'' Personal Accident Insurance Coverage'' Group Savings Linked Insurance Scheme'' Contributory Provident Fund'' Maternity Benefit Scheme'' Subsidised Canteen Facility'' Transport Subsidy'' Medical Attendance'' Leave Travel Concession'' Incentive Scheme for acquiring higher qualifications'' Merit Scholarships for the children of SC/ST employees'' and Mediclaim medical attendance facility for the retired employees etc. Other welfare measures such as House Building Advance'' HBA Interest Subsidy'' HBA Family Security Mutual Fund'' Special casual leave for maternity/ paternity and incentives for adopting small family norms and advances for children''s higher education'' marriage and purchase of computer etc.'' are extended to the employees.

HUMAN RESOURCES DEVELOPMENT

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

i) During the year 2012-13'' 268 employees were trained in various training programmes.

ii) During the year 2012-13'' 12 DCCP Apprentice Trainees and 8 Industrial Trainees were inducted for training for a period of 12 months.

iii) One senior executive was sent to Antwerp'' Belgium'' to attend APEC Tailormade Course on "Port Planning and Management” organized by Antwerp/Flanders Port Training Centre VZW from 25.02.2013 to 08.03.2013.

IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT'' 2005

As per the Directives of the Government of India'' the Corporation implemented the Right to Information Act'' 2005 w.e.f. 12.10.2005'' and made all required infrastructual arrangements such as appointment of Public Information Officers'' Asst. Public Information Officers and Appellate Authority; Publication of 17 prescribed manuals giving classified Corporate Information about DCI for the information of the public; set-up of procedure and submission of periodical reports on the progress of implementation of the Act. All the officers concerned were imparted training and sent to seminars conducted by professional bodies. A record is also being maintained for monitoring the requests from public seeking information and the replies by the concerned are also being co-ordinated. Required periodical reports on the implementation of RTI/ Status of RTI replies are being furnished to the Ministry'' CIC from time to time.

ACTIVITIES OF PUBLIC GRIEVANCES AND COMPLAINTS CELL :

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the Grievances/Complaints received from the Public. The Joint General Manager (HSE) is designated as the Director of Public Grievances'' As per the Ministry''s guidelines'' a status report is being submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is forwarded to the Ministry. In line with the Ministry''s direction'' a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the Computer Network in the Corporation'' which works in hand-shake mode between the Ministry and the Corporation. Complaints received during the year were suitably taken care.

INFORMATION & FACILITATION COUNTER

In order to ensure transparency in the functioning of the Corporation and also for easy and speedy access for any information to the public'' an INFORMATION & FACILITATION COUNTER (IFC) was set up at DCI Head Office'' Visakhapatnam and the same is notified in the web-site also.

PROGRESSIVE USE OF HINDI

i) The Corporation continued its efforts to implement the Official Language Policy of the Government. An Incentive Scheme to award cash prizes'' etc.'' is in vogue in the Corporation and employees trained under inservice training in Hindi and qualified in various examinations conducted thereunder are being awarded cash awards.

ii) Hindi week was celebrated during September 2012. Table Training / work-shop was arranged for employees to impart working skills drafting & noting in Hindi'' and operation of Bilingual software.

iii) Computerisation of forms / correspondence and reports in Hindi'' was implemented in various departments. Several formats'' salary slips'' PF Statements'' letter-heads'' visiting cards'' banners and other items of stationery were got printed / made bilingual and the same were made available on the computers. Web-site information was also updated in Hindi. Unicode was installed in various functional Departments.

iv) Issue of Office Orders / Circulars'' Reports submitted to Government and Parliamentary Committees was ensured in bilingual. ISM Policy'' ISM Code'' all ISM Manuals'' Safety Instructions'' etc.'' were translated into Hindi and subsequent amendments are being updated from time to time. Correspondence in Hindi was extended to some more areas of work - such as RTI and Public Grievances.

v) The officers of the Corporation actively participated in the meetings and activities of the Town Official Language Implementation Committee'' Visakhapatnam during the year.

CITIZEN''S CHARTER

As per the directives of the Government of India'' to focus on the commitment of DCI towards its citizens / clients in respect of standard of services'' information'' choice and consultation'' non-discrimination and accessibility'' grievance redress'' courtesy and value for money'' including expectations of the Organisation from the citizen/client for fulfilling the commitment of the Organisation'' a Citizens'' Charter approved by the Competent Authority was posted on the Corporate website.

As part of requirement thereof'' a Task Force has been re-constituted with representatives from the Management and Staff Unions'' as well as from the Visakhapatnam Port Trust'' a local clientele organisation. The Task force attends to the duties as prescribed by the Department of Administrative Reforms and Public Grievances. The HoD (HR) is designated to be the Nodal Officer to coordinate and monitor the formulation and implementation of the Citizens Charter in DCI'' who also functions as the Member Secretary of the Task Force.

ACTIVITIES OF VIGILANCE DEPARTMENT

During the year 2012-13 the Vigilance department has taken significant measures to integrate its activities with other departments of the Corporation and provide a pro-active orientation to interface it with managerial process. As a part of the same'' periodic'' surprise and CTE type inspections have been carried out and systemic deficiencies and irregularities noticed have been communicated to concerned departments for necessary action. Vigilance Awareness week was observed during 29th October 2012 to 3rd November'' 2012. Vigilance web page on the Company''s website has been redesigned incorporating various aspects of vigilance'' besides launching of online complaint system. The Vigilance Bulletin "Alert" is being published for dissemination of the latest information and knowledge on vigilance.

IMPLEMENTATION OF JUDGEMENTS/ ORDERS OF THE CAT

There were no judgements/Order of the CAT pertaining to the Company during the year.

STATUTORY AUDITORS

M/s G.R.Kumar & Co.'' Chartered Accountants'' Visakhapatnam were appointed by the Comptroller and Auditor General of India as Statutory Auditors for auditing the accounts of the Company for the financial year 2012-13. Pursuant to Section 224(8)(aa) of the Companies Act'' 1956'' the remuneration of the Auditors has to be approved by the Members at the AGM. The Board recommends the remuneration of Rs.2.50 lakhs plus service tax as applicable for the year 2012-13 for approval of the Members at this AGM. INDEPENDENT AUDITORS'' REPORT '' C&AG COMMENTS AND MANAGEMENT COMMENTS TO THE QUALIFICATIONS IN INDEPENDENT AUDITOR''S REPORT

The Independent Auditor''s Report on the Accounts for 2012-13 given by the Statutory Auditors is placed along with the Accounts. The Comments of the Comptroller and Auditor General of India on the Accounts for the year ended 31st March'' 2013 are placed next to the Statutory Auditor''s Report. The Statutory Auditors have qualified their Report as under:- QUOTE

The Company has not recognized impairment of long term investments of Rs.3''000 lacs (Last year : Rs.3000 lacs) in M/s. SCL; which is not in accordance with para 17 of "AS-13 Accounting for investments” as prescribed under sub-section 3C of section 211 of the Act. The decline in investment value (other than temporary)'' is envisaged with reference to Investee''s assets and results'' prolonged litigation'' expected cash flows'' restrictions on distributions by Investee or disposal by Investor etc.

Had such provision been recognized'' the profits of the Company for the year ended 31st March'' 2013 and the reserves of the Company as at 31st March'' 2013 would have been lower by Rs.3''000 lacs; thereby resulting in net loss of Rs.949.10 lacs. UNQUOTE

The Management''s reply to the qualification in the Auditors report is as under:

The Management is of the view that the qualification of the Auditors is unwarranted as Sethusamudram Corpoation Limited (SCL) is a Special Purpose Vehicle floated solely for the purpose of the Sethusamudram Ship Channel Project (SSCP) with Central Government as majority shareholder holding 66% of the Rs.745 Cr. paid up share capital along with Ports'' SCI and DCI. The holding of DCI is Rs.30Cr which is only about 4% of the paidup share capital of SCL. There is no private investment. It is incorrect to assume that there is any decline in investment value unless any diminution is recognized as such by the Central Government - the major shareholder. SCL is a continuing entity though the dredging work has been stopped/frozen pending final verdict of the Apex Court. Principles of valuation of Trade investment are not relevant to this investment. Moreover'' there has been no decline in the investee''s assets and results as SCL''s Balance Sheet as on 31/03/2012 showed a positive networth of Rs.798.97 Cr. Further SCL has declared a pre-operative surplus of Rs.1.91 Cr. for FY 2011-12 in their Annual Report. It is a strategic investment by DCI to grow its business over a long term. Long term investment is to be carried at cost. Unless there are published documents/ financial reports evidencing a decline in the carrying cost'' Statutory Auditor''s qualification is inappropriate. The factual position in this regard is adequately covered in Notes to the Financial Statements 2012-13.

The Comptroller and Auditor General of India has issued "Nil Comments” Certificate on the accounts of the Company for the year ended 31st March'' 2013.

DIRECTORS

As per the Articles of Association of the Company'' all the Directors are appointed by the President of India as communicated through the administrative Ministry - Ministry of Shipping.

Ministry of shipping vide its letter dated 21/6/12 communicated appointment of Shri M.C.Jauhari'' Joint Secretary (Shipping)'' MoS as part- time official Director of the Company in place of Shri Rakesh Srivastava'' who has relinquished charge as Joint Secretary (Ports). Ministry of Shipping vide its letter dated 03/04/2013 communicated appointment of Shri B. Poiyaamozhi'' Development Advisor (Ports)'' MoS as part-time official Director of the Company. Shri B. Poiyaamozhi has taken over charge as part-time official Director of the Company w.e.f. 03/04/2013.

Pursuant to Section 256'' of the Companies Act'' 1956 it is proposed to retire Shri B. Poiyaamozhi and Dr. S. Narasimha Rao at this meeting and they are eligible for re-appointment. The Board recommends for their re-appointment in this meeting.

ACKNOWLEDGEMENTS

The Directors thank Hon''ble Minister of Shipping and officers and staff of Ministry of Shipping for the valuable help'' assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and co-operation extended by them. The Board is grateful to the Comptroller & Auditor General of India; the Member'' Audit Board and the Statutory Auditors for their co-operation. The Board also thanks the Bankers of the Company for their valuable services. The Board expresses its gratitude to the valued customers for their continued patronage. The Directors place on record their appreciation of the services rendered by all the employees of the Corporation.

For and on behalf of the Board of Directors

Place : Visakhapatnam CAPT. D.K.MOHANTY

Date : 21/08/2013 CHAIRMAN AND MANAGING DIRECTOR

---

Mar 31, 2012

The Directors have pleasure in presenting this 36th Annual Report together with the audited accounts of the Company for the year ended 31st March, 2012.

The first of the three state of the art Trailer Suction Hopper dredgers of 5500 Cu.M Hopper Capacity each ordered, scheduled to join the fleet towards the end of this year in December 2012. The remaining two dredgers will follow and join the fleet in June 2013 and January 2014 respectively. The addition of these dredgers will help the Company to augment its capacity as well meet the dredging committments at various ports in an unhindered way as well as enable the Company to take up refurbishment the existing aged dredgers so as to enhance their life as well as their efficiency.

The financial closure for the first two dredgers has been completed during the year. The Company is exploring structured products for financing the third dredger including issue of Tax Free Infrastructure Bonds subject to the approval of Government of India.

In continuation of the steps taken for capacity augmentation, the Company proposes to procure two 9000 Cu.M Hopper capacity TSHDs during the current 12th Plan period 2012- 2017.

The Company is sure that with the continuous capacity augmentation the performance will continuously improve over the years to come.

FINANCIAL RESULTS

The ageing dredgers and their prolonged layups continued to effect the operations of the Company during the year. The operational income for the year is Rs.49165.82 lakh as compared to Rs.50714.15 lakh for the previous year. The other income is Rs.1292.47 lakh as compared to Rs.1558.33 lakh for the previous year.

The total income for the year is Rs.50458.29 lakh as compared to Rs.52272.48 lakh for the previous year.

Profit after tax is Rs.1318.10 lakh as compared to Rs.3951.47 lakh for the previous year.

The Company's earning per share for 2011-2012 is Rs.4.71 as compared to Rs.14.11 for the previous year.

DCI FLEET

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

BORROWING POWERS

A proposal for increasing the borrowing powers of the company to Rs.2500 Cr to facilitate borrowings for meeting the CAPEX plans is submitted for approval of the Members as Special Business along with the required explanatory statement thereof. It is recommended that the Members accord approval to the proposal.

DIVIDEND

Considering the massive capital committments underway towards procurement of dredgers and in the interest of the future growth of the company, the Board of Directors did not recommend dividend for the year 2011-12.

DREDGING OPERATIONS

The Company is catering to the dredging requirements of the Haldi/Kolkata Port almost for the past thirty years. The Company also caters to the maintenance dredging requirements to other major ports, Indian Navy etc. The Company is taking up capital dredging assignments also depending on the availability of the vessels and other ligistic requirements.

During the year under review, maintenance dredging contracts were executed for Kolkata Port, Karwar Port, Mormugao Port, new sand trap and its approaches for Visakhapatnam Port Trust, Naval Channel at Ernakulam, channels and basins at Cochin Port. The Capital dredging work is being executed at Ennore Port.

The above works were executed either under the existing contracts or renewal of the contracts entered into with the Ports etc., during the previous years or new contracts entered into during the year.

The capacity utilisation during the year is 90% of the available capacity.

MEMORANDUM OF UNDERSTANDING

The Company has signed Memorandum of Understanding (MOU) with Government of India for the year 2012-13. INTERNATIONAL SAFETY MANAGEMENT (ISM) CODE

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

(b) DCI holds a Document of compliance (DOC) valid till 24-06-2012. The same is being endorsed every year after annual verification audit by DG Shipping.

SHIP SECURITY SYSTEM (ISPS)

All dredgers (except dumb vessels Dr. - VII and Dr. - XVIII) and Tug - VII of DCI hold valid International Ship Security Certificates (ISSC).

QUALITY MANAGEMENT SYSTEM (ISO 9001:2008)

DCI is certified for Quality Management System (ISO 9001:2008) by Indian Register of Shipping (IRQS). The first QMS Surveillance Audit after renewal / recertification was carried out successfully in March, 2012.

ENVIRONMENT MANAGEMENT SYSTEM (ISO 14001:2004)

DCI is certified for Environmental Management System (ISO 14001:2004) by IRQS. The first EMS Surveillance Audit was carried out successfully in March, 2012.

MEMBERS/ INVESTOR SERVICES The shares of the Company are listed on Delhi, Mumbai, Calcutta Stock Exchanges and National Stock Exchange. The shares of the Company are dematerialised with both the depositories, NSDL and CDSL. M/s. Karvy Computershare Private Limited, Hyderabad are the R & T Agents of the Company.

PARTICULARS OF THE EMPLOYEES UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956:

The particulars of employees for the year 2011-12 as required under Sec. 217 (2A) of the Companies Act, 1956 is "Nil" as no employee earned a salary of Rs.60 lakhs per annum or Rs.5 lakh per month during the year 2011-12.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the provisions of sub-section (2AA) of Section 217 of the Companies Act, 1956 your Directors confirm:

(i) that in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with a proper explanation relating to material departures;

(ii) that the Directors had 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 at the end of the financial year and of the profit or loss of the company for that period;

(iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities;

(iv) that the Directors had prepared the Annual Accounts on a going concern basis.

INFORMATION TO BE GIVEN UNDER COMPANIES, (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988.

a) Conservation of energy under Sec.217(1)(e): Your Company does not fall under the category of companies which are required to furnish this information. However, the following measures have been taken:

i) All the dredgers in DCI fleet are installed with sophisticated and state-of-the art instrumentation like Differential Global Positioning System (DGPS) and Draft Volume Load Monitoring (DVLM) system to facilitate efficient dredging with potential energy saving.

ii) While procuring new dredgers, fuel efficient design with advanced technology is selected.

iii) Continuous efforts are being made to optimise the fuel consumption on board dredgers as cost of fuel constitutes approximately 30-35% of operational cost.

b) Technology absorption under Section 217 (1) (e): There was no transfer of technology and consequently there is no absorption of technology during the year.

CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, Management Discussion and Analysis Report, Corporate Governance Report and Certificate from the Company Secretary in practice regarding compliance of conditions of Corporate Governance are attached, forming part of this Report.

MAN POWER:

The total number of employees (both Shore and Floating) in the Corporation, as on 31st March, 2012 was 631, as against 683 during the previous year.

EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

The manpower position with regard to various reserved categories is as indicated hereunder:

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfill its obligation in providing employment opportunities to SC/ ST candidates, in accordance with the Government Policy. The overall representation of SC/STs in the Corporation (both Shore and Floating Establishments, but excluding MPWs) as on 31st March, 2012 was SCs - 94, i.e., 14.94 % as against prescribed percentage of 16.66% and STs 32 i.e., 5.08% as against the prescribed percentage of 7.5%.

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (both Shore and Floating) in group C and D categories in the Corporation was 14.57% and Nil as against the percentage of 14.50% and 24.50% respectively as prescribed by the Government.

C. Employment of Physically Handicapped

The number of physically handicapped employees in the Corporation as on 31st March, 2012 is 7 (seven), the group-wise break-up A, B, C & D is as furnished hereunder:-

Group Sanctioned Total strength No.of Percentage strength in identified persons with posts with disabilities reference actually to identified employed posts A 173 49 01 2.04

B 93 52 04 7.69

C 57 50 02 4.00

D 05 05 Nil Nil

Total 328 156 07 4.49

The overall percentage of Group 'A' &' B' posts comes to 3.50% of the identified posts in these Groups, which is higher than the prescribed 3%. The overall percentage of Group 'C' and 'D' posts comes to 4.47% of the total sanctioned strength in these groups which is higher than the prescribed 3%. The Physically handicapped persons are being paid additional conveyance assistance as per the Government instructions.

D. Employment of women

The number of women employees on Rolls as on 31st March, 2012 is 45 as against 50 as on 31st March, 2011. Out of them number of executives is 15 and Non- Executives is 30.

Compliance with Government's Policy on Women: Basing on the Supreme Court's judgement and keeping in view the Government instructions on sexual harassment of women at work places, a complaints

Committee headed by a woman officer was constituted to inquire into the complaints of sexual harassment at work places. A complaints register is also being maintained.

DCI is a Life Member of the Forum for Women in Public Sector and one women representative from DCI has been nominated to the above forum. Apart from the Trade Unions, the problems, if any, relating particularly to women employees are looked into as and when the same are brought to the notice of the Management.

EXISTING BENEFITS AND WELFARE MEASURES FOR

THE WOMEN EMPLOYEES :

i) The women employees in the Corporation are entitled to 180 days of Maternity Leave.

ii) Special Casual leave not exceeding 14 working days is sanctioned to regular women employees of the Corporation to undergo non-puerperal sterilisation.

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

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

v) DCI is a Life Member of the Forum for Women in Public Sector and one women representative from DCI has been nominated to the above forum. Apart from the Trade Unions, the problems, if any, relating particularly to women employees are looked into as and when the same are brought to the notice of the Management.

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

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

vii) The women employees of DCI are sponsored to various in-house and also external training programmes. Out of 45 women employees, 7 had undergone training during the year 2011-12.

WAGE SETTLEMENTS

A. FLOATING ESTABLISHMENT :

i) The INSA-MUI (FG/HT) Agreements in respect of Floating Officers is due for revision w.e.f. 01.04.2012.

ii) The INSA-NUSI Agreements, relating to HT Petty Officers is due for revision w.e.f. 01.04.2010.

iii) The Wage Agreement of Crew/MPWs is due for revision w.e.f. 01.04.2010.

B. SHORE ESTABLISHMENT:

The Revised pay scales of Executives and Non- Executives have been implemented w.e.f. 01.01.2007

INDUSTRIAL RELATIONS:

The industrial relations in the Corporation continued to be cordial throughout the year under report.

WELFARE MEASURES:

The Corporation continued various welfare schemes viz.,

Family Pension Scheme, Group Gratuity Assurance Scheme,

Personal Accident Insurance Coverage, Group Savings Linked Insurance Scheme, Contributory Provident Fund, Maternity Benefit Scheme, Subsidised Canteen Facility, Transport Subsidy, Medical Attendance, Leave Travel Concession, Incentive Scheme for acquiring higher qualifications, Merit Scholarships for the children of SC/ST employees, and Mediclaim medical attendance facility for the retired employees etc. Other welfare measures such as House Building Advance, HBA Interest Subsidy, HBA Family Security Mutual Fund, Special casual leave for maternity/ paternity and incentives for adopting small family norms and advances for children's higher education, marriage and purchase of computer etc., are extended to the employees. HUMAN RESOURCES DEVELOPMENT

The Corporation is making sincere and concerted efforts for the overall development of Human Resources, both on Shore and Floating Establishments.

During the year 2011-12, as against a target of Employee Training and Motivation, the following have been complied:

i) 87 employees were trained in 23 various training programmes with 163 training man days.

ii) 6 minority persons were imparted training during the year as against 2 in the previous year, which is 8%

iii) Under Tonnage Tax scheme, the corporation has to fulfill the Minimum Training Requirement (MTR) for the year 2011-12. For the year 2011-12 the Basic Training Committment (BTC) for DCI is 7249 training Mondays against which 7908 training Mondays were imparted.

iv) 4 DCCP Apprentice Trainees and 5 Industrial Trainees in Finance and Marketing discipline were inducted for training for a period of 12 months.

IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005

As per the Directives of the Government of India, the Corporation implemented the Right to Information Act, 2005 w.e.f. 12.10.2005, and made all required infrastructural arrangements such as appointment of Public Information Officers, Asst. Public Information Officers and Appellate Authority; Publication of 17 prescribed manuals giving classified Corporate Information about DCI for the information of the public; set-up of procedure and submission of periodical reports on the progress of implementation of the Act. All the officers concerned were imparted training and sent to seminars conducted by professional bodies. A Register is also being maintained for monitoring the requests from public seeking information and the replies by the concerned are also being co- ordinated.

ALL INDIA DREDGING CADRE :

Six AIDC Deck Cadets have completed their 27 months training in June, 2011 and posted as trainee junior officers on board dredgers. Seven Dredge Grade Cadets, on completion of 2 weeks familiarisation course at IMU, Visakhapatnam, are presently undergoing training onboard DCI Dredgers for 18 months.

ACTIVITIES OF PUBLIC GRIEVANCES AND COMPLAINTS CELL :

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the Grievances/ Complaints received from the Public. The HOD (HSE) is the Director of Public Grievances. As per the Ministry's guidelines, a status report is being submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is forwarded to the Ministry. In line with the Ministry's direction, a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the Computer Network in the Corporation, which works in hand-shake mode between the Ministry and the Corporation. Complaints received during the year were suitably replied. INFORMATION & FACILITATION COUNTER

In order to ensure transparency in the functioning of the Corporation and also for easy and speedy access for any information to the public, an INFORMATION & FACILITATION COUNTER (IFC) was set up at DCI Head Office, Visakhapatnam and the same is publicised in the web-site also.

PROGRESSIVE USE OF HINDI

The Corporation continued its efforts to implement the Official Language Policy of the Government. An Incentive Scheme to award cash prizes, personal pay, etc., is in vogue in the Corporation and employees trained under in-service training in Hindi and qualified in various examinations conducted there under are being awarded cash awards and personal pay.

Hindi week was celebrated during September and a Hindi Exhibition was also organised. The employees participated in the All India Hindi Seminars / Kavi Sammelans held at Visakhapatnam and presented papers / poetry.

Table Training / work-shop was arranged for employees to impart working skills drafting & noting in Hindi, and operation of Bilingual software.

The officers of the Corporation actively participated in the meetings and activities of the Town Official Language Implementation Committee, Visakhapatnam during the year.

Computerisation of Forms/ correspondence and reports in Hindi was implemented in various departments. Issue of Office Orders/Circulars, Reports submitted to Government and Parliament Committees was ensured in bilingual. CITIZEN'S CHARTER

As per the directives of the Government of India, in order to focus on the committment of DCI towards its citizens / clients in respect of standard of services, information, choice and consultation, non-discrimination and accessibility, grievance redress, courtesy and value for money, including expectations of the Organisation from the citizen/client for fulfilling the committment of the Organisation, a Citizen's Charter approved by the Competent Authority was posted on the Corporate Website. HOD(HR) is designated as Nodal Officer to co-ordinate and monitor the formulation and implementation of the Citizen's charter in DCI who also functions as Member Secretary of Task Force constituted for implementation of Citizen's Charter.

ACTIVITIES OF VIGILANCE DEPARTMENT During the year 2011-12, the Vigilance department has taken significant measures to integrate its activities with other departments of the Corporation and provide a pro-active orientation to interface it with managerial process. As a part of the same, periodic, surprise and CTE type inspections have been carried out and systemic deficiencies and irregularities noticed have been communicated to concerned departments for necessary action. Vigilance Awareness week was observed during 31st October 2011 to 5th November, 2011. Vigilance web page on the Company's website has been redesigned incorporating various aspects of vigilance, besides launching of online complaint system. Quarterly Vigilance Bulletin "Alert" is being published for dissemination of the latest information and knowledge on vigilance.

IMPLEMENTATION OF JUDGEMENTS/ ORDERS OF THE CAT

There were no judgements/Order of the CAT pertaining to the Company during the year.

AUDITORS

M/s G.R.Kumar & Co., Chartered Accountants, Visakhapatnam were appointed by the Comptroller and Auditor General of India as Auditors for auditing the accounts of the Company for the financial year 2011-12. Pursuant to Section 224(8)(aa) of the Companies Act, 1956, the remuneration of the auditors has to be approved by the members at the AGM. The Board recommends the remuneration of Rs.2.50 lakhs (Rupees two lakh and fifty thousand only) plus service tax as applicable for the year 2011-12 for approval of the members at this AGM. AUDITORS' REPORT

The Auditors Report on the Accounts for 2011-12 is placed along with the Accounts.

C&AG COMMENTS

The Comments of the Comptroller and Auditor General of India on the Accounts for the year ended 31st March, 2012 are placed next to the Auditor's Report.

DIRECTORS

As per the Articles of Association of the Company, all the Directors are appointed by the President of India as communicated through the administrative Ministry - Ministry of Shipping.

The term of the four Part-time Non-official Directors - Shri S.Balachandran, Dr.Gautam Barua, Shri A.Soundararaajan and Dr.Debashis Sanyal was completed on 16/4/11. Ministry of Shipping vide letter dated 20/01/11 communicated the appointment of Shri PJayapal as Director (Operations and Technical) of the Company. Shri PJayapal assumed charge with effect from 18/4/11.

Ministry of Shipping vide letter dated 17/10/11 communicated appointment of Shri S. Balachandran and Shri Vinai Kumar Agarwal as Part-time Non-official Independent Directors. Shri S. Balachandran and Shri Vinai Kumar Agarwal assumed charged w.e.f. 11/11/11.

Ministry of shipping vide its letter dated 18/11/11 communicated appointment of Capt. D K Mohanty as Chairman and Managing Director of DCI. Capt. D K Mohanty assumed charge as CMD on 30/11/11.

Ministry of Shipping vide letter dated 15/03/12 communicated cessation of directorship of Dr.A.R. Goyal as Part-time Official Director of the Company. Dr. A. R. Goyal ceased to be Director w.e.f. 07.03.2012.

Ministry of shipping vide its letter dated 21/6/12 communicated appointment of Shri M.C.Jauhari, Joint Secretary (Shipping), MoS as part-time official Director of the Company in place of Shri Rakesh Srivastava, who has relinquished charge as Joint Secretary (Ports).

The Board places on record its appreciation of the valuable contribution and guidance rendered by Shri A.Soundararaajan, Dr.Gautam Barua, Dr.Debashis Sanyal, Dr.A.R.Goyal and Shri Rakesh Srivastava during their term of office as Directors of the Company.

Pursuant to Section 256, of the Companies Act, 1956 it is proposed to retire Shri S.Balachandran, Shri Vinai Kumar Agarwal, Shri M.C.Jauhari and Shri P.V.Ramana Murthy at this meeting and they are eligible for re-appointment. The Board recommends for their re-appointment in this meeting.

ACKNOWLEDGEMENTS

The Directors thank Hon'ble Minister of Shipping and officers and staff of Ministry of Shipping for the valuable help, assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and co- operation extended by them. The Board is grateful to the Comptroller & Auditor General of India, the Member, Audit Board and the Statutory Auditors for their co-operation. The Board also thanks the Bankers of the Company for their valuable services. The Board expresses its gratitude to the valued customers for their continued patronage.

The Directors place on record their appreciation of the services rendered by all the employees of the Corporation. For and on behalf of the Board of Directors

CAPT. D.K.MOHANTY

CHAIRMAN AND MANAGING DIRECTOR

Place : Visakhapatnam

Date : 31/08/2012

---

Mar 31, 2011

Dear Shareholders,

The Directors have pleasure in presenting this 35th Annual Report together with the audited accounts of the Company for the year ended 31st March, 2011.

FINANCIAL RESULTS

The Company earned an operational income of Rs.45785.64 lakh compared to Rs.64540.91 lakh for the previous year.

The other income is Rs.6486.84 lakh as compared to Rs.4853.69 lakh for the previous year.

The total income for the year is Rs.52272.48 lakh as compared to Rs.69394.60 lakh for the previous year.

Profit after tax is Rs.3951.47 lakh as compared to Rs.7005.38 lakh for the previous year.

The Company's earning per share for 2010-2011 is Rs.14.11 as compared to Rs.25.02 for the previous year.

DCI FLEET

As on 31st March 2011, your Company has among others, 10 Trailer Suction Hopper Dredgers (TSHD)and 3 Cutter Suction Dredgers (CSD).The Craft wise particulars are at Annexure-I.

PLAN PROPOSALS

Contracts for procurement of three TSHDs of each 5500 cum capacity were signed during the year. The vessels are scheduled for delivery in Nov'12 , May'2013 and October 2014 respectively.

Construction of one Backhoe dredger, order for which was placed in January'09 is complete and the vessel has reached India. After completion of successful trials dredger is expected to be delivered in August, 2011.

DIVIDEND

Considering the massive capital committments underway towards procurement of dredgers and in the interest of the future growth of the company, the Board of Directors did not recommend dividend for the year 2010-11. A sum of Rs. 400.00 lakh has been transferred to General Reserves during the year ended 31/3/2011.

DREDGING OPERATIONS

During the year under review, maintenance dredging contracts were executed at Kolkata, Visakhapatnam, Mormugao, New Mangalore Port and capital dredging for Ennore Port and Paradip Port. The works were executed either under the existing contracts or renewal of the contracts entered into with the Ports etc., during the previous years or new contracts entered into during the year. The capacity utilisation during the year is 79% of no.of days of installed capacity.

MEMORANDUM OF UNDERSTANDING

The Company has signed Memorandum of Understanding (MOU) with Government of India for the year 2011-12. The Company expects the rating of 'GOOD' for the year 2010-11.

INTERNATIONAL SAFETY MANAGEMENT (ISM) CODE

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

(b) DCI holds a Document of compliance (DOC) valid till 24-06-2012. The same is being endorsed every year after annual verification audit by DG Shipping.

SHIP SECURITY SYSTEM (ISPS)

All dredgers (except dumb vessels Dr. - VII and Dr. - XVIII) and Tug - VII of DCI hold valid International Ship Security Certificates (ISSC).

QUALITY MANAGEMENT SYSTEM (ISO 9001:2008)

DCI is certified for Quality Management System (ISO 9001:2008) by Indian Register of Shipping (IRQS). The first QMS Surveillance Audit after renewal / recertification was carried out successfully in February, 2011.

ENVIRONMENT MANAGEMENT SYSTEM (ISO 14001:2004)

DCI is certified for Environmental Management System (ISO 14001:2004) by IRQS. The first EMS Surveillance Audit was carried out successfully in February, 2011.

MEMBERS/ INVESTOR SERVICES

The shares of the Company are listed on Delhi, Mumbai, Calcutta Stock Exchanges and National Stock Exchange.The shares of the Company are dematerialised with both the depositories, NSDL and CDSL. M/s. Karvy Computershare Private Limited, Hyderabad are the R & T Agents of the Company.

PARTICULARS OF THE EMPLOYEES UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956:

The particulars of employees for the year 2010-11 as required under Sec. 217 (2A) of the Companies Act, 1956 is “Nil” as no employee earned a salary of Rs.60 lakhs per annum or Rs.5 lakh per month during the year 2010-11. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the provisions of sub-section (2AA) of Section 217 of the Companies Act, 1956 your Directors confirm: (i) that in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with a proper explanation relating to material departures; (ii) that the Directors had 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 at the end of the financial year and of the profit or loss of the company for that period; (iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities; (iv) that the Directors had prepared the Annual Accounts on a going concern basis.

INFORMATION TO BE GIVEN UNDER COMPANIES, (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988.

a) Conservation of energy under Sec.217(1)(e): Your Company does not fall under the category of companies which are required to furnish this information. However, the following measures have been taken:

i) All the dredgers in DCI fleet are installed with sophisticated and state-of-the art instrumentation like Differential Global Positioning System (DGPS) and Draft Volume Load Monitoring (DVLM) system to facilitate efficient dredging with potential energy saving.

ii) While procuring new dredgers, fuel efficient design with advanced technology is selected.

iii) Continuous efforts are being made to optimise the fuel consumption on board dredgers as cost of fuel constitutes approximately 40% of operational cost.

b) Technology absorption under Section 217 (1) (e): There was no transfer of technology and consequently there is no absorption of technology during the year.

c) Foreign Exchange earnings and outgo Under Section 217 (1)(e):

(Rs. In Lakhs)

i) Foreign Exchange Earnings : 0.00

Total 0.00

ii) Foreign Exchange outgo:

a) Import of components

and spares (CIF value) 3665.93

b) Repayment of foreign

currency loan 0.00

c) Interest paid on loans

from foreign banks 0.00

d) Travelling 10.25

e) Chartering charges 48.25

Total 3724.43

CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, Management Discussion and Analysis Report, Corporate Governance Report and Certificate from the Company Secretary in practice regarding compliance of conditions of Corporate Governance are attached, forming part of this Report.

MAN POWER:

The total number of employees (both Shore and Floating) in the Corporation, as on 31st March, 2011 was 683, as against 721 during the previous year.

EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

The manpower position with regard to various reserved categories is as indicated hereunder:

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfill its obligation in providing employment opportunities to SC/ST candidates, in accordance with the Government Policy. The overall representation of SC/STs in the Corporation (both Shore and Floating Establishments, but excluding MPWs) as on 31st March, 2011 was SCs - 96, i.e., 14.08 % as against prescribed percentage of 16.66% and STs 37 i.e., 5.43% as against the prescribed percentage of 7.5%.

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (both Shore and Floating) in group C and D categories in the Corporation was 14.22% and Nil as against the percentage of 14.50% and 24.50% respectively as prescribed by the Government.

C. Employment of Physically Handicapped

The number of physically handicapped employees in the Corporation as on 31st March, 2011 is 7 (seven), the

group-wise break-up A, B, C & D is as furnished here under:-

Group Sanctioned Total strength No.of Percentage strength in identified persons with posts with disabilities reference actually to identified employed posts

A 182 56 01 1.78

B 99 58 03 5.17

C 62 58 03 5.17

D 05 05 Nil Nil

Total 348 177 07 3.95

The overall percentage of Group 'A' &' B' posts comes to 3.50% of the identified posts in these Groups, which is higher than the prescribed 3%. The overall percentage of Group 'C' and 'D' posts comes to 4.47% of the total sanctioned strength in these groups which is higher than the prescribed 3%. The Physically handicapped persons are being paid additional conveyance assistance as per the Government instructions.

D. Employment of women

The number of women employees on Rolls as on 31.03.2011 is 50 as against 53 as on 31.03.2010. Out of them number of executives is 15 and Non-Executives is 35.

Compliance with Government's Policy on Women :

Basing on the Supreme Court's judgement and keeping in view the Government instructions on sexual harassment of women at work places, a complaints Committee headed by a woman officer was constituted to inquire into the complaints of sexual harassment at work places. A complaints register is also being maintained.

DCI is a Life Member of the Forum for Women in Public Sector and one women representative from DCI has been nominated to the above forum. Apart from the Trade Unions, the problems, if any, relating particularly to women employees are looked into as and when the same are brought to the notice of the Management.

Existing Benefits and Welfare Measures for the Women Employees :

i) The women employees in the Corproation are entitled to 135 days of Maternity Leave.

ii) Special Casual leave not exceeding 14 working days is sanctioned to regular women employees of the Corporation to undergo non-puerperal sterlisation.

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

iv) DCI is a Life Member of the Forum for Women in Public Sector and one women representative from DCI has been nominated to the above forum. Apart from the Trade Unions, the problems, if any, relating particularly to women employees are looked into as and when the same are brought to the notice of the Management.

v) As a welfare measure, a Rest Room is provided

exclusively for the women employees.

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

vii) The women employees of DCI are sponsored to various in-house and also external training programmes. Out of 50 women employees, 11 had undergone training during the year 2010-11.

WAGE SETTLEMENTS

A. FLOATING ESTABLISHMENT :

i) The INSA-MUI (FG/HT ) Agreements in respect of Floating Officers, for the periods from 2008 to 2010 and 2010 to 2012 have been implemented.

ii) The INSA-NUSI Agreements, relating to HT Petty Officers for the period from 2008-10 was expired on 31.03.2010. The wage revision is due from 01.04.2010.

iii) The Wage Agreement of Crew/MPWs for the period from 2008-10 was expired on 31.03.2010. The wage revision is due from 01.04.2010.

B. SHORE ESTABLISHMENT:

i) The Revised pay scales of Executives have been

implemented w.e.f. 01.01.2007 ii) The wage revision of Non-Executive employees has

been implemented w.e.f.01.01.2007.

INDUSTRIAL RELATIONS:

The Non-Executive Employees Union representing the Non- Executive Employees of the Company were on strike from 11/10/10 to 15/10/10 for settlement of wage revision for non-executives. The wage revision for non-executives was subsequently implemented with effect from 01.01.07. Barring the above, the industrial relations in the Corporation continued to be cordial throughout the year under report.

WELFARE MEASURES:

The Corporation continued various welfare schemes viz., Family Pension Scheme, Group Gratuity Assurance Scheme, Personal Accident Insurance Coverage, Group Savings Linked Insurance Scheme, Contributory Provident Fund, Maternity Benefit Scheme, Subsidised Canteen Facility, Transport Subsidy, Medical Attendance, Leave Travel Concession, Incentive Scheme for acquiring higher qualifications, Merit Scholarships for the children of SC/ST employees, and Mediclaim medical attendance facility for the retired employees etc. Other welfare measures such as House Building Advance, HBA Interest Subsidy, HBA Family Security Mutual Fund, Special casual leave for maternity/ paternity and incentives for adopting small family norms and advances for children's higher education, marriage and purchase of computer etc., are extended to the employees.

HUMAN RESOURCES DEVELOPMENT

The Corporation is making sincere and concerted efforts for the overall development of Human Resources, both on Shore and Floating Establishments.

During the year, 12 DCCP apprentices, One Management Trainee and Two Industrial Trainees were inducted for training. As part of social responsibility, students from local Institutions/Colleges/Universities were guided for project works in Human Resource Management, Finance, Marketing and Information Technology etc. Under Tonnage Tax Scheme, the Corporation imparted 8060 Training Mandays against the Basic Training Committment (BTC) of 7227 Training Mandays.

During the year 2010-2011 a total of 32 employees were trained in the specified programmes as against the MOU target of 30. Altogether 195 employees were imparted training during the year 2010-11.

IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005

As per the Directives of the Government of India, the Corporation implemented the Right to Information Act, 2005 w.e.f. 12.10.2005, and made all required infrastructual arrangements such as appointment of Public Information Officers, Asst. Public Information Officers and Appellate Authority; Publication of 17 prescribed manuals giving classified Corporate Information about DCI for the information of the public; set-up of procedure and submission of periodical reports on the progress of implementation of the Act. All the officers concerned were imparted training and sent to seminars conducted by professional bodies. A Register is also being maintained for monitoring the requests from public seeking information and the replies by the concerned are also being co-ordinated.

ALL INDIA DREDGING CADRE :

Six AIDC Deck Cadets have completed their 27 months training in June, 2011. Seven Dredge Grade Cadets, on completion of 2 weeks familiarisation course at IMU, Visakhapatnam, are presently undergoing training onboard DCI Dredgers for 18 months.

ACTIVITIES OF PUBLIC GRIEVANCES AND COMPLAINTS CELL :

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the Grievances/ Complaints received from the Public. The General Manager (Fin.) is the Director of Public Grievances. As per the Ministry's guidelines, a status report is being submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is forwarded to the Ministry. In line with the Ministry's direction, a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the Computer Network in the Corporation, which works in hand-shake mode between the Ministry and the Corporation. The five complaints received during the year were suitably replied.

INFORMATION & FACILITATION COUNTER

In order to ensure transparency in the functioning of the Corporation and also for easy and speedy access for any information to the public, an INFORMATION & FACILITATION COUNTER (IFC) was set up at DCI Head Office, Visakhapatnam and the same is publicised in the web-site also.

PROGRESSIVE USE OF HINDI

The Corporation continued its efforts to implement the Official Language Policy of the Government. An Incentive Scheme to award cash prizes, personal pay, etc., is in vogue in the Corporation and employees trained under inservice training in Hindi and qualified in various examinations conducted thereunder are being awarded cash awards and personal pay.

Hindi Fortnight was celebrated during September and a Hindi Exhibition was also organised during the year. The employees participated in the All India Hindi Seminars /

Kavi Sammelans held at Visakhapatnam and presented papers / poetry. Poetry and Radio talks in Hindi were also broadcast on AIR.

Table Training / work-shop was arranged for employees to impart working skills drafting & noting in Hindi, and operation of Bilingual software.

The officers of the Corporation actively participated in the meetings and activities of the Town Official Language Implementation Committee, Visakhapatnam during the year.

During the year, the Corporation was awarded Third Prize by the Ministry of Shipping for the year 2009-10 and another prize by the Town Official Language Implementation Committee for the progressive use of Hindi for the same year.

ACTIVITIES OF VIGILANCE DEPARTMENT DURING 2010-11

Under preventive vigilance, during the year, the Vigilance Department conducted 26 regular inspections, 14 surprise checks and 11 CTE type inspections on various aspects of performance. The objective of such inspections was to find out violations of extant Rules, instructions, CVC/ Govt. Guidelines and suggest measures for streamlining systems, improvement of measures for better house keeping, elimination of scope for corruption and irregularities and encouraging greater efficiency and transparency. Vigilance Awareness week was observed during 25th October to 1st November, 2010 and customer/vendor meets were organised. Vigilance web page on the Company's website has been redesigned incorporating various aspects of vigilance, besides launching of online complaint system. Quarterly Vigilance Bulletin is being published for dissemination of the latest information and knowledge on vigilance.

CITIZEN'S CHARTER

As per the directives of the Government of India, in order to focus on the committment of DCI towards its citizens / clients in respect of standard of services, information, choice and consultation, non-discrimination and accessibility, grievance redress, courtesy and value for money, including expectations of the Organisation from the citizen/client for fulfilling the committment of the Organisation, a Citizen's Charter approved by the Competent Authority was posted on the Corporate Website.

IMPLEMENTATION OF JUDGEMENTS/ ORDERS OF THE CAT

There were no judgements/Order of the CAT pertaining to the Company during the year.

AUDITORS

M/s Rao & Narayan, Chartered Accountants were appointed by the Comptroller and Auditor General of India as Auditors for auditing the accounts of the Company for the financial year 2010-11. Pursuant to Section 224(8)(aa) of the Companies Act, 1956, the remuneration of the auditors has to be approved by the members at the AGM. The Board recommends the remuneration of Rs.2.50 lakhs (Rupees two lakh and fifty thousand only) plus service tax as applicable for the year 2010-11 for approval of the members at this AGM.



AUDITORS' REPORT

The Auditors Report on the Accounts for 2010-11 are placed along with the Accounts.

C&AG COMMENTS

The Comments of the Comptroller and Auditor General of India on the Accounts for the year ended 31st March, 2011 are placed next to the Auditor's Report.

DIRECTORS

As per the Articles of Association of the Company, all the Directors are appointed by the President of India as communicated through the administrative Ministry - Ministry of Shipping.

Shri P. Sridharan ceased to be Director (Operations & Technical) w.e.f. 01/12/10 on attaining the age of superannuation. The term of Dr.S.Narasimha Rao, part time non-official Director was completed on 4/03/10 and Ministry of Shipping communicated the appointment of Dr.S.Narasimha Rao for a period of three years w.e.f. 6/12/10.

Ministry of Shipping vide its letter dated 4/3/11 communicated the relief of Capt.S.S.Tripathi Chairman and Managing Director and assignment of additional charge of Chairman and Managing Director to Shri P.V.Ramana Murthy, Director (Finance) upto 3/6/11.

Ministry of Shipping communictaed the appointment of Shri P.Jayapal as Director (Operations and Technical) of the Company. Shri P.Jayapal assumed charge with effect from 18/4/11.

The term of the four Part-time Non-official Directors - Shri S.Balachandran, Dr.Gautam Barua, Shri A.Soundararaajan and Dr.Debashis Sanyal was completed on 16/4/11.

Pursuant to Section 256, of the Companies Act, 1956 Dr.S.Narasimha Rao, and Shri P. Jayapal retire at this meeting and are eligible for re-appointment. The Board recommends for their re-appointment in this meeting.

ACKNOWLEDGEMENTS

The Directors thank Hon'ble Minister of Shipping and officers and staff of Ministry of Shipping for the valuable help, assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and co-operation extended by them. The Board is grateful to the Comptroller & Auditor General of India, the Member, Audit Board and the Statutory Auditors for their co-operation. The Board also thanks the Bankers of the Company for their valuable services. The Board expresses its gratitude to the valued customers for their continued patronage.

The Directors place on record their appreciation of the services rendered by all the employees of the Corporation.

For and on behalf of the Board of Directors

-sd- -sd-

(P.JAYAPAL) (P. V. RAMANA MURTHY)

DIRECTOR(OPS. & TECH.) DIRECTOR (FINANCE)

Place: VISAKHAPATNAM Date: 03/08/2011

---

Mar 31, 2010

The Directors have pleasure in presenting this 34th Annual Report together with the audited accounts of the Company for the year ended 31st March, 2010.

FINANCIAL RESULTS

The Company earned an operational income of Rs. 64540.91 lakh compared to Rs. 68522.19 lakh for the previous year.

The other income is Rs.4853.69 lakh as compared to Rs. 14700.11 lakh for the previous year.

The total income for the year is Rs. 69394.60 lakh as compared to Rs. 83222.30 lakh for the previous year.

Profit after tax is Rs.7005.38 lakh as compared to Rs. 4637.17 lakh for the previous year.

The Companys earning per share for 2009-2010 is Rs.25.02 as compared to Rs. 16.56 for the previous year.

DIVIDEND

Keeping in view the financial performance of your Company and other relevant considerations, your Directors recommend payment of dividend @ 30% on the paid up capital of the Company absorbing an amount of Rs.979.51 lakh including dividend tax of Rs. 139.51 lakh for the year 2009-10. For the previous year 2008-09 dividend @ 50% involving Rs. 1638.08 lakh including dividend tax of Rs.238.08 lakh was paid. A sum of Rs.750.00 lakh has been transferred to General Reserves during the year ended 31/3/2010.

DCI FLEET

As on 31st March 2010 your Company has among others, 10 Trailer Suction Hopper Dredgers (TSHD)and 3 Cutter Suction Dredgers (CSD).The Craft wise particulars are at Annexure-I.

DREDGING OPERATIONS

During the year under review, maintenance dredging contracts were executed at Kolkata, Paradip, Visakhapatnam, Mormugao, New Mangalore Port and capital dredging for Paradip and Mormugao Port. The works were executed either under the existing contracts or renewal of the contracts entered into with the Ports etc., during the previous years or new contracts entered into during the year. The capacity utilisation during the year is 81% of of no.of days of available capacity. PLAN PROPOSALS

Contract was signed, on 29.04.2010 for procurement of 2 TSHDs of each 5500 cum capacity. The Dredgers are expected to be delivered in Nov2012 and May2013 respectively.

One No. dumb cutter suction dredger of 2000 cum solids per hr capacity was delivered by MDL, Mumbai to DCI on 06.03.2010. The vessel will be put to operation after satisfactory completion of trials.

The Backhoe dredge?, order-for which was placed in January, 2009 is expected to be delivered by end November, 2010.

MEMORANDUM OF UNDERSTANDING

The Company has signed Memorandum of Understanding (MOU) with Government of India for the year 2010-11. The Company expects the rating.of EXCELLENTfor the year 2009-10.

INTERNATIONAL SAFETY MANAGEMENT (ISM) CODE

(a) All dredgers (except dumb vessels Dr - VII and Dr. XVIII) of DCI hold valid Safety Management Certificates (SMCs).

(b) DCI has been issued with Document of compliance (DOC) valid till 24-06-2012. The same is being endorsed every year after annual verification audit.

SHIP SECURITY SYSTEM(ISPS)

All dredgers (except dumb vessels Dr. - VII and Dr. - XVIII) of DCI hold valid International Ship Security Certificates (ISSCs). Renewal of ISSCs of all above vessels have been completed successfully.

QUALITY MANAGEMENT SYSTEM (ISO 9001:2008)

DCI has been certified for Quality Management System (ISO 9001:2000) (QMS) by Indian Register of Shipping (IRQS). The renewal/re-certification audits by IRQS for the revised version of QMS (ISO 9001:2008) were completed during March 2010. The scope of the system covers Head Office, Project Offices and Vessels.

ENVIRONMENT MANAGEMENT SYSTEM (ISO 14001:2004)

The certification audits of Environmental Management System (ISO 14001: 2004) were completed during January 2010 and DCI has been certified for EMS. The scope of the system covers Head Office, Projects Offices and Vessels.

MEMBERS/ INVESTOR SERVICES

The shares of the Company are listed on Delhi, Mumbai, Calcutta Stock Exchanges and National Stock Exchange.The shares of the Company are dematerialised with both the depositories, NSDL and CDSL. M/s. Karvy Computershare Private Limited, Hyderabad are the R & T Agents of the Company.

PARTICULARS OF THE EMPLOYEES UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956: The particulars of employees for the year 2009-10 as required under Sec. 217 (2A) of the Companies Act, 1956 is enclosed at Annexure -II.

DIRECTORSRESPONSIBILITY STATEMENT Pursuant to the provisions of sub-section (2AA) of Section 217 of the Companies Act, 1956 your Directors confirm: (i) that in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with a proper explanation relating to material departures; (ii) that the Directors had 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 at the end of the financial year and of the profit or loss of the company for that period;

(iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities;

(iv) that the Directors had prepared the Annual Accounts on a going concern basis.

INFORMATION TO BE GIVEN UNDER COMPANIES, (DISCLOSURE OF PARTICULARS INTHE REPORT OF BOARD OF DIRECTORS) RULES, 1988.

a) Conservation of energy under Sec.217(1)(e): Your Company does not fall under the category of companies which are required to furnish this information. However, the following measures have been taken:

i) All the dredgers in DCI fleet are installed with sophisticated and state-of-the art instrumentation like Differential Global Positioning System (DGPS) and Draft Volume Load Monitoring (DVLM) system to facilitate efficient dredging with potential energy saving.

ii) While procuring new dredgers, fuel efficient design with advanced technology is selected.

iii) Continuous efforts are being made to optimise the fuel consumption on board dredgers as cost of fuel constitutes approximately 35% of operational cost.

b) Technology absorption under Section 217 (1) (e): There was no transfer of technology and consequently there is no absorption of technology during the year.

c) Foreign Exchange earnings and outgo Under Section 217 (1)(e):(Rs. In Lakhs)

i) Foreign Exchange Earnings: 0.00 Total 0.00

ii) Foreign Exchange outgo:

a) Import of components and spares

(CIF value) 6946.19

b) Repayment of foreign currency loan 551.03

c) Interestpaidonloansfromforeignbanks 13.65

d) Travelling 9.79

e) Chartering charges 5273.13

Total 12793.79



CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, Management Discussion and Analysis Report, Corporate Governance Report and Certificate from the Auditors of the Company regarding compliance of conditions of Corporate Governance are attached, forming part of this Report.

MAN POWER:

The total number of employees (both Shore and Floating) in the Corporation, Ist March, 2010 was 721, as against 767 during the previous year, excluding MPWs.

EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

The manpower position with regard to various reserved categories is as indicated hereunder:

A. Employment of SC/ST Candidates

The Corporation continued its efforts to fulfill its obligation in providing employment opportunities to SC/ST candidates, in accordance with the Government

Policy. The overall representation of SC/STs in the Corporation (both Shore and Floating Establishments, but excluding MPWs) as on 31st March, 2010 was SCs - 97, i.e., 13.45% as against prescribed percentage of 16.66% and STs 39 i.e., 05.41 % as against the prescribed percentage of 7.5%.

B. Employment of Ex-Servicemen

The representation of Ex-Servicemen (both Shore and Floating) in group C and D categories in the Corporation was 13.28% and Nil as against the percentage of 14.50% and 24.50% respectively as prescribed by the Government.

C. Employment of Physically Handicapped

The number of physically handicapped employees in the Corporation as on 31st March, 2010 is 7 (seven), the group-wise break-up A, B, C & D is as furnished hereunder:-



Group Sanctioned Total strength No.of Percentage strength in identified persons with posts with disabilities reference actually to identified employed posts

A 185 53 01 1.88

B 108 69 03 4.34

C 66 62 03 4.83

D 07 07 Nil Nil

Total 366 191 07 3.66



The overall percentage of GroupA&Bposts comes to 3.27% of the identified posts in these Groups, which is higher than the prescribed 3%. The overall percentage of Group C and D posts comes to 4.10% of the total sanctioned strength in these groups which is higher than the prescribed 3%. The Physically handicapped persons are being paid additional conveyance assistance as per the Government instructions.

D. Employment of women

The number of women employees on Rolls as on 31.03.2010 is 53 as against 46 as on 31.03.2009. Out of them number of executives is 15 and Non-Executives is 38.

Compliance with Governments Policy on Women:

Basing on the Supreme Courts judgement and keeping in view the Government instructions on sexual harassment of women at work places, a complaints Committee headed by a woman officer was constituted to inquire into the complaints of sexual harassment at work places. A complaints register is also being maintained.

DCI is a Life Member of the Forum for Women in Public Sector and one womens representative from DCI has been nominated to the above forum. Apart from the Trade Unions, the problems, if any, relating particularly to women employees are looked into as and when the same are brought to the notice of the Management.

Existing Benefits and Welfare Measures for the Women Employees:

i) The women employees in the Corproation are entitled to 135 days of Maternity Leave. ii) Special Casual leave not exceeding 14 working days is sanctioned to regular women employees of the Corporation to undergo non-puerperal sterlisation. iii) One day special casual leave is allowed to the regular women employees of the Corporation who had ICUD insertions. iv) A rest room is provided exclusively for the women employees. v) Working uniforms are provided to GroupD women employees, as per the scales prescribed in the Rules. vi) The women employees are sponsored to various in- house and also external training programmes. Out of 53 women employees 24 had undergone training during the past one year i.e., from 01.04.2009 to 31.03.2010. WAGE SETTLEMENTS

A. Floating establishment:

i) The INSA-MUI (FG/HT) Agreements in respect of Floating Officers, for the periods from 2008 to 2010 and 2010 to 2012 have been implemented.

ii) The 1NSA-NUSI Agreements, relating to Petty Officers for the period from 2008-10 was implemented upto 31/03/2010. The wage revision is due from 01/04/2010.

iii) The Wage Agreement of Crew for the period from 2008- 10 was implemented upto 31 /03/2010. The wage revision is due from 01/04/2010.

B. Shore establishment:

i) The Revised pay scales of Executives have been

implemented w.e.f. 01.01.2007 ii) Wage Revision for Non-Executive Employees in the Shore Establishment is due from 01.01.2007 and negotiations are in progress. INDUSTRIAL RELATIONS:

The industrial relations in the Corporation continued to be cordial throughout the year under report. WELFARE MEASURES:

The Corporation continued various welfare schemes viz., Family Pension Scheme, Group Gratuity Assurance Scheme, Personal Accident Insurance Coverage, Group Savings Linked Insurance Scheme, Contributory Provident Fund, Maternity Benefit Scheme, Subsidised Canteen Facility, Transport Subsidy, Medical Attendance, Leave Travel Concession, Incentive Scheme for acquiring higher qualifications, Merit Scholarship for the children of SC/ST employees, and Mediclaim medical attendance facility for the retired employees etc. Other welfare measures such as House Building Advance, HBA Interest Subsidy, HBA Family Security Mutual Fund, Special casual leave for maternity/paternity and incentives for adopting small family norms and advances for childrens higher education, marriage and purchase of computer etc., are extended to the employees.

HUMAN RESOURCES DEVELOPMENT

The Company is making sincere and concerted efforts for the overall development of Human Resources, both on shore and floating establishments.

During the year, 7 DCCP apprentices were inducted for training. Six Management Trainees were also inducted in various disciplines, during the year. As part of social responsibility, students from local institutions were guided for project works in Human Resource Management, Labour Management, Marketing Management, Information Technology etc.,

Fifteen Electrical Officers and Seven Dredge Operators / Dredge Engineers have undergone technical training. Lecture programmes on Work Culture, Enhancing Management Development, Leadership were arranged for the benefit of the employees by inviting eminent academic and professional personalities, during the year. As against target of 131 personnel to be trained under the MoU Targets, a total of 213 employees were trained in the specified programmes.

IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005

As per the Directives of the Government of India, the Corporation implemented the Right to Information Act, 2005 w.e.f. 12.10.2005, and made all required infrastructual arrangements such as appointment of Public Information Officers, Asst. Public Information Officers and Appellate Authority; Publication of 17 prescribed manuals giving classified Corporate Information about DCI for the information of the public; set-up of procedure and submission of periodical reports on the progress of implementation of the Act. All the officers concerned were imparted training and sent to seminars conducted by professional bodies. A Register is also being maintained for monitoring the requests from public seeking information and the replies by the concerned are also being coordinated.

ALL INDIA DREDGING CADRE:

Six AIDC Deck Cadets, who were inducted under AIDC Scheme, during March 2009, are continuing their training.

ACTIVITIES OF PUBLIC GRIEVANCES AND COMPLAINTS CELL

A Public Grievance Cell has been functioning in the Corporation since 1988 to look into the Grievances / Complaints received from the public. The General Manager (Fin.) is the Director of Public Grievances, assisted by a Manager (OL). As per the Ministrys guidelines, a status report is being submitted for the information of the Board of Directors at the Board meetings and a quarterly status report is forwarded to the Ministry.

In line with the Ministrys direction, a Public Grievance Redressal and Monitoring System (PGRAMS) software was installed in the Computer Network in the Corporation, which works in hand-shake mode between the Ministry and the Corporation. Five complaints received during the year were suitably replied to.

INFORMATION & FACILITATION COUNTER

In order to ensure transparency in the functioning of the Corporation and also for easy and speedy access for any information to the public, an INFORMATION & FACILITATION COUNTER (IFC) was set up at DCI Head Office, Visakhapatnam and the same is publicised in the web-site also.

PROGRESSIVE USE OF HINDI

The Corporation continued its efforts to implement the Official Language Policy of the Government. An Incentive Scheme to award cash prizes, personal pay etc., is in vogue in the Corporation and the employees trained under in service training in Hindi and qualified in various examinations conducted thereunder are being awarded cash awards and personal pay.

Hindi Fortnight was observed and Hindi Exhibition was organised during the year.

The Officers of the Company actively participated in the meetings and activities of the Town Official Language Implementation Committee, Visakhapatnam during the year. The Corporation was awarded a Prize by the Town Official Language Implementation Committee, Visakhapatnam during the year.

ACTIVITIES OF VIGILANCE DEPARTMENT DURING 2009- 2010 Under preventive vigilance, during the year, the Vigilance Department conducted 25 regular inspections, 4 surprise checks and 3 CTE type inspections on various aspects of performance. The objective of such inspections was to find out violations of extant Rules, instructions, CVC/ Govt. Guidelines and suggest measures for streamlining systems, improvement of measures for better house keeping, elimination of scope for corruption and irregularities and encouraging greater efficiency and transparency. Vigilance Awareness week was observed during November, 2009 and customer/vendor meets were organised. Vigilance web page on the Companys website has been redesigned incorporating various aspects of vigilance, besides launching of online complaint system. Quarterly Vigilance Bulletin is being published for dissemination of the latest information and knowledge on vigilance.

CITIZENS CHARTER

As per the directives of the Government of India, in order to focus on the commitment of DCI towards its citizens / clients in respect of standard of services, information, choice and consultation, non-discrimination and accessibility, grievance redress, courtesy and value for money, including expectations of the Organisation from the citizen/client for fulfilling the commitment of the Organisation, a Citizens Charter approved by the Competent Authority was posted on the Corporate Website.

IMPLEMENTATION OF JUDGEMENTS/ORDERS OF THE CAT

There were no judgements/Order of the CAT pertaining to the Company during the year.

AUDITORS

M/s Rao & Narayan, Chartered Accountants were appointed by the Comptroller and Auditor General of India as Auditors for auditing the accounts of the Company for the financial year 2009-10. Pursuant to Section 224(8)(aa) of the Companies Act, 1956, the remuneration of the auditors has to be approved by the members at the AGM. The Board recommends the remuneration of Rs.2.50 lakhs (Rupees two lakh and fifty thousand only) plus service tax as applicable for the year 2009-10 for approval of the members at this AGM.

AUDITORSREPORT

The Auditors Report on the Accounts for 2009-10 are placed along with the Accounts.

C&AG COMMENTS

The Comments of the Comptroller and Auditor General of India on the Accounts for the year ended 31st March, 2010 are placed next to the Auditors Report. DIRECTORS

As per the Articles of Association of the Company all the Directors are appointed by the President of India as communicated through the administrative Ministry - Ministry of Shipping.

The term of Dr.S.Narasimha Rao. part time non-official Director is completed on 4/03/10. Pursuant to Section 256, of the Companies Act, 1956 Shri Rakesh Srivatsava, IAS and Shri P.Sridharan retire at this meeting and are eligible for re-appointment. The Board recommends for their re-appointment in this meeting.

ACKNOWLEDGEMENTS

The Directors thank Honble Minister of Shipping and officers and staff of Ministry of Shipping for the valuable help, assistance and guidance rendered from time to time. The Directors thank all other Ministries for the help and co-operation extended by them. The Board is grateful to the Comptroller & Auditor General of India, the Member, Audit Board and the Statutory Auditors for their co- operation. The Board also thanks the Bankers of the Company for their valuable services. The Board expresses its gratitude to the valued customers for their continued patronage.

The Directors place on record their appreciation of the services rendered by all the employees of the Corporation.

For and on behalf of the Board of Directors -sd-

Place:VISAKHAPATNAM (Capt.S.S.TRIPATHI)

Date:06/08/2010 CHAIRMAN AND MANAGING DIRECTOR