duke offshore ltd Management discussions

1. Industry Trends and Developments

The year 2022-23 has been a tough year for global technology market. There is an increasing requirement for specialized offshore vessels globally for surveillance for transportation of men and materials through water ways and for vessels for security purpose and this trend will continue to grow.

Your Company’s range of professional services are inspection of oil fields platform & operations, diving trainings, vessel management and marine logistics, charter of Fast interceptor Craft and allied marine services for surveillance.

2. The year in perspective:

Our Company has made remarkable progress with ongoing projects in chartering the Fast Interceptors Crafts/Vessels for guarding the offshore boarders and for transportation of men and materials through water ways and is planning to expand the same by entering into contract with other Companies apart from Government to provided support service vessels for patrolling.

3. Future Prospects & Outlook:

The Management of the Company are cautiously optimistic about future growth prospects and working towards new project, facilities expansion and most importantly, understanding the changing customers preference and demands for fostering long term profitable relationship with Customer.

4. Business Risks and Management’s assessments:

Our Company has identified the following risks that may arise: Availability of financial resources. The Company expects a substantial increase in revenue by way of additional contracts. However, these contracts will require heavy investment for procurement of vessels and offshore assets and have tenure for fixed period.

5. Availability of financial resources

The Company expects a substantial increase in revenue by way of additional contracts. However, these contracts will require heavy investment for procurement of vessels and offshore assets and have tenure for fixed period

6. Human Resources and Industrial Relations:

The Board wishes to express its deep appreciation to all employees in our Company for their contributions to our Company during the year. Harmonious relations continued to prevail in the organization, strengthening the well- established traditions of fairness in dealings and commitment to the future growth of employees through sustained growth of our company.

7. Financial Condition and Operational Performance

7.1. Share Capital

The Company has at present only one class of shares. The authorized share capital is 3,00,00,000 Equity shares of Rs. 10/- each, constituting to Rs. 30,00,00,000/- and the paid-up capital is Rs. 98,572,000 (9,857,200 Equity shares of Rs. 10/- each) during the year under review. Out-standing at the year end to 9,857,200 Equity shares of Rs.10/- each.

7.2. Fixed Asset

During the year 2022-2023 the Company has gross block of assets of Rs. 53,236,000/-

7.3. Net Worth

The Net Worth for the year ended March 31, 2023 is INR 5,83,46,299/- compared to the Net worth of INR 6,28,36,650/- for the same period last year.

7.4. Revenues

In the year under review the total revenue of the Company was INR 27,80,6000/- compared to INR 14,58,2000/- for the same period in the previous year.

7.5. Operating Profit (EBITDA)

The Company reported Negative EBITDA for Rs. 38,67,000/- for F.Y. ended on 31.03.2023 against Negative EBITDA for Rs. 20,886,000/-for F.Y. ended on 31.03.2022.

7.6 Internal Control Systems and their adequacy

The Company has adequate internal control systems in place. With a view to monitor the Company’s performance as well as to make sure that internal checks and controls are operating properly, the Company has system of checking the adequacy of its internal control

8. Performance:

In the following table, please find brief of financials of the Company:

(Rs in Lakhs)

	2022-23	2021-22
Particulars
Total Revenue	278.06	145.82
Profit before depreciation and tax	-38.67	-208.86
Profit before tax	-128.10	-390.79
Profit after tax	-0.46	-4.17
Earnings Per Share (EPS)	-0.46	-4.17

9. Opportunities & Threats:

Opportunities: The recovery of the aviation and tourism sectors can catalyse demand for the oil industry, Increasing power and energy projects could be a growth driver for the oil industry, Increase in infrastructural spending is projected to catalyse oil demand, Increase in the sale of automobiles could drive the demand for oil. Threats: The geopolitical tension during the Russia-Ukraine war hasn’t been resolved, leading to a sustained volatility in crude oil prices, the rise of electric vehicles could shrink fuel demand, the operating capacities of key global players could be under threat with product specifications being tightened by strict environmental legislations, the world could increasingly move away from fossil fuels.

10. Acknowledgement

Your Directors wish to express their grateful appreciation to the continued co-operation received from the Banks, Government Authorities, Customers, Vendors and Shareholders during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the committed service of the Executives, staff and Workers of the Company.

	By the order of the Board For
	DUKE OFFSHORE LIMITED
	Sd/- Avik George Duke
Place: Mumbai	Managing Director
Date: 14th August, 2023	DIN: 02613056