Income from operation has gone up by 29% to Rs. 14501 lacs for Q1 this year from Rs. 11223 lacs of Q1 last year. This is due to additional revenue of six new vessels and project income which were not there in Q1 last year.
Other income includes exchange gain of Rs. 2072 lacs (unrealised gain Rs. 2044 lacs) due to foreign exchange rate(s) fluctuations on outstanding balances of foreign currency loans and payments (effected during the quarter), taken for acquiring vessels from abroad. This change has been necessitated to reflect the accounts in accordance with the revised accounting standard 11 which has become part of the Companies (Accounting Standards) Rules, 2006 issued by Ministry of Company Affairs vide notification dated 7th December 2006 and made applicable w.e.f. 1st April 2007.
As per this standard, foreign exchange gain / (loss) is worked out on the basis of difference between exchange rate(s) prevailing on the closing exchange rate(s) of last quarter and closing exchange rate(s) of current quarter or payment date. This standard of computation of foreign exchange gain / (loss) and it’s reflection in quarterly accounts has to be followed for each quarter till such loan(s) are fully paid.
Upto the previous quarters i.e. including quarter ended 31 March 2007 such exchange rate(s) differences were adjusted in capital cost (carrying cost) of vessels.
Operating Expenses have gone up by 49% to Rs. 8103 lacs for Q1 this year from Rs. 5432 Lacs of Q1 last year. This is again mainly due to addition of new vessels and project expenses.
Interest and depreciation has gone up because of additional borrowings as a result of the new vessels.
All the above factors have resulted in PAT going up by 60%, taking into account the other income included in para 2 above.
The Company has been awarded a five year contract from Oil And Natural Gas Corporation Limited for its new state of the art Jackup Rig “Samed Shikhar”. The approximate value of the contract is Rs 1000 crores. The contract is slated to commence on or before May 2009.