Duke Offshore Ltd Management Discussions.

1. Industry Trends and Developments

The year 2016-17 has been a mixed year for global marine market. Your company continues to face an increase in requirement for specialized offshore vessels globally for surveillance, survey, transportation of crew and materials through water ways and for vessels for security purpose and this trend will continue to grow.

Your Companys range of professional services and superior vessel management ensure that your company is on a continuous growth curve in the long term outlook.

2. The year in perspective:

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

Your company has acquired a state of the art patrol/crew vessel and will continue to expand its fleet during the coming years.

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 and fostering long term profitable relationship with Customer.

4. Business Risks and Managements assessments -

Your Company has identified the following risks that may arise:- Availabilitv 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 forfixed period.

5. Human Resources and Industrial Relations -

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

Financial Condition and Operational Performance

5.1 Share Capital

The Company has at present only one class of shares. The authorized share capital is 52, 50,000 Equity shares of Rs. 10/- each, constituting to Rs. 5,25,00,000/-.There was no increase in the paid up capital of Rs. 52,500,000/- during the year under review, outstanding at the year end to 49,783,000 equity sharesof Rs.10/-each.

5.2. Fixed Assets

During the year 2016-2017 the Company has added INR14,30,29,614/- to the gross block of assets.

5.3. Net Worth

The Net Worth for the year ended March 31,2017 is INR 1,44,111,271/-. compared to the Net worth of INR 135,747,620/-. for the same period last year registering overall improvement in the Net Worth.

The Net Worth has been increased by 20.29 % compared to previous year 26.65%.

5.4. Revenues

In the year under review the total revenue of the Company was INR 68,890,698/- compared to IN R 99,404,727/- for the same period in the previous year.

5.5. Operating Profit (EBIDT)

The Company earned operating profit of INR 308,74,298/- and continues to declare profit yearly.

5.6 Internal Control Systems and their adequacy -

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

ACKNOWLEDGEMENT

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

By the order of the Board
For DUKE OFFSHORE LIMITED
Sd/- Avik George Duke
Place : Mumbai Managing Director
Date : 30.05.2017 DIN:02613056