DOLPHIN OFFSHORE (Introduction)

 The Dolphin Offshore was incorporated on May17, 1979

as a Pvt Ltd company.

 It became the first Indian company to acquire the

company for all aspects of offshore diving and underwater
engineering.

 The company has been guided by an eminent board of

directors since inception.

 To protect shareholder value and maintain confidence in

a challenging economic climate, the company regularly
reviews its corporate management functions and has
strengthened its Audit Committee and its internal auditing
procedures.

 To keep pace with new challenges of deep water

recovery of hydrocarbons and the impacts of climate
change, Dolphin Offshore has begun work on establishing
international public-private sector cooperation for
development of underwater technology and environment
protection, search and rescue operations and setting up of
training facilities.
 Recognizing the immediate global shortage of
underwater professionals, the company is launching its
own in house training program for divers and underwater
technicians and to ensure the Country can build up its pool
of professionals with international certifications.

Dolphin company has expanded its activities to include:

 Diving and underwater services
 Project management
 Marine operations and management services
 Turnkey EPC projects
 Fabrication and installation services
 Rig repairs & ship repairs
 Design engineering

BUSINESS MODEL
 National Oilwell Vacro Inc. has sold two 20,000-psi (20K)
BOP stacks to Transocean. This, the company said,
makes it the first oilfield equipment manufacturer to
successfully design, engineer, and sell such a package.
 According to NOV, the 20K BOP stack is designed to
optimize uptime and reduce unplanned stack pulls. It is
also designed for use with extremely high pressure
reservoirs and can be used in ultra- deepwater.
 Joe Rovig, President, NOV Rig Technologies, said: “This is
a historic moment for the offshore oil and gas industry.
The introduction of NOV’s 20K BOP marks a new era in
 the exploration and development of high-pressure
formations”…
 The sale of this equipment and technology package is
the culmination of five years of work by NOV Rig
Technologies. The initial deployment is expected in 2021
on a 20K well in the Gulf of Mexico.
Oversupply still prevails in oilfield service sector
 Oilfield service companies are starting to increase prices
for products and services, according to consultant
Rystad Energy.
 Many oil and gas companies scaled back their
investments in 2015 as oil prices fell, and the smaller
players were forced to cut costs.
 This trend continued in 2016, Martinsen said, but in
2017 and 2018 more E&Ps could finally finance their
ambitious operations growth through improved
operational cash flow, leaving market concentration
levels in 2018 on par with those seen back in 2014.
 Rystad’s analysis suggests that the Big Four of
Schlumberger, Halliburton, BHGE, and TechnipFMC, and
the next 10 largest service companies, started to lose
market share to smaller players in late in 2015.
 But market concentration was re-established in 2017
and 2018 following various major M&A deals in the
industry.
 “Even though the oilfield service market has become
more concentrated at the same time as the buyer side
has become more fragmented, there are also other
factors which impact pricing power,”Martinsen said.
  Some segments, despite being more concentrated, are
still heavily challenged by oversupply, forcing companies
to adjust their capacity before prices improves.

ACCOUNTING STANDARDS
Role of IGAAP in Dolphin Offshore

IGAAP encompasses a wide range of accounting practices and

philosophies. Some key areas covered by IGAAP include:
 Recognition: How assets, liabilities, revenues, and
expenses are recognized on financial statements.
 Measurement: How profits and losses are measured
and reported on financial statements.
 Presentation: How information needs to be presented
on financial statements.
 Disclosure: What information needs to be shared on
financial statements.
 It allows investors to easily evaluate companies simply
by reviewing their financial statements.
 It also helps companies gain key insights into their own
practices and performance.
  It minimizes the risk of erroneous financial reporting by
having numerous checks and safeguards in place.

Director’s Responsibility Statement

In this company the director thereby confirm that:-

 In the preparation of annual accounts for financial year
ended March 31 2018 the applicable accounting
standards have been followed along with proper
explanation relating to material departures.
 The directors have selected such accounting policies and
applied them consistently and made judgements and
estimates that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the
company at March31 2018 and of the profit/loss of the
company for the year ended on that date.
 The directors have taken proper and sufficient care for
the maintenance of adequate accounting records in
accordance with the provisions of this Act for
safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities.
 The directors have prepared the annual accounts for
financial year ended March 31 2018 on a going concern
basis.
 The directors have laid down internal financial controls
to be followed by the bank and that such internal
financial controls are adequate and were operating
effectively.
 The directors had devised proper systems to ensure
compliance with the provisions of all applicable laws and
that systems were adequate and operating effectively.
Disclosure of accounting treatment in preparation of
financial statements
Disclosures on materially significant related part
transactions i.e., transactions of the company which are of
material nature, with its promoters, the directors or the
management, their subsidiaries or relatives etc. that may
have potential conflict with the interests of the company are
given in the audited financial statements.

Auditor’s Responsibility

 Their responsibility is limited to examining the

procedures and implementation thereof, adopted by
the company for ensuring the compliance of the
conditions of the corporate governance. It is neither
audit nor expression of opinion on the financial
statements of the company.
 They have examined the books of account and other
relevant records and documents maintained by the
company for the purpose of providing reasonable
assurance on the compliance with corporate
governance requirements by the company.
 They have complied with the relevant applicable
requirements of the standard on Quality control 1,
Quality control for firms that perform audits and
reviews of historical financial information, and other
assurance and related services engagements.

ACCOUNTING POLICIES
Significant accounting policies
a) Fixed assets and depreciation
Tangible assets and depreciation
Tangible assets are valued at cost, which includes the
purchase price of the asset, and other direct costs incurred in
getting the asset at the approachable location and into a
condition where they can be put to use.
Intangible assets and amortization
Intangible assets comprising of “Computer Software” are
recorded at acquisition cost and are amortized over the
estimated useful life on straight line basis.
b) Investments
Long term investments are stated at cost. Current
investments are stated at lower cost or fair value. Cost of
investments is determined as the purchase price of the
investments plus other direct costs incurred on establishing
clear ownership of the investment.
c) Inventories
Stores and spares are valued at lower of cost and net
realizable value.
d) Recognition of revenue
The company generally adopts the proportionate
completion method of revenue recognition where
revenues are recognized as and when work is
completed. Eg.- per day, per square meter etc.
e) Leases
Leases, where the lessor effectively retains substantially
all the risks and benefits of ownership of the leased
item, are classified as operating leases. Operating lease
payments are recognized as expense in the Statement of
 Profit and Loss on a straight-line basis over the lese
term.
f) Foreign currency transactions
Foreign currency transactions are recorded in the books
of account at the exchange rate prevailing on the date
of the transaction.
g) Employee benefits
Short term employee benefits
Liability in respect of short term compensated absences
is accounted for at undiscounted amount likely to be
paid as per entitlement.
Defined contribution plan
Retirement benefits in the nature of Provident Fund,
superannuation scheme and others which are defined
contribution schemes, are charged to the Statement of
Profit and Loss of the year when contributions accrue.
Defined benefit plan
The liability for Gratuity, a defined benefit obligation, is
accrued and provided for on the basis of actuarial
valuation using the projected unit credit method as on
the balance sheet date.
Other long term benefits
Long term compensated absences are provided on the
basis of actuarial valuation, using the projected unit
credit method as on the balance sheet date.
h) Deferred tax and income tax
. Deferred taxes arise due to the difference in recognition
of income and expenses as per company’s books of account
prepared as per generally accepted accounting principles and
as per the income tax returns prepared in accordance with
the provisions of Indian Income tax Act ,1961.
i) Earnings per share
Earnings per share have been calculated on the basis of
the weighted average of the number of equity shares of
Rs 10 each that are outstanding as at the balance sheet
date.
j) Use of Estimates
The preparation of financial statements requires
estimates and assumptions to be made that affect the
reported amounts of assets and liabilities and disclosure
of contingent liabilities at the date of the financial
statements and the reported amounts of revenues and
expenses during the reporting period.

Recent Accounting Pronouncements

The Company’s Board of Directors is responsible for
the matters stated in sectionb134(5) of the companies
act 2013 with respect to the preparation of these
standalone Ind AS financial statements that give a true
and fair view of the financial position , financial
performance including other comprehensive in come
cash flows and changes in equity of the company in
accordance with the accounting principles generally
accepted in India including the Indian accounting
standards prescribed 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 the assets of the
company and for preventing and detecting frauds and
other irregularities, selection and application of
appropriate accounting policies, making judgements and
estimates that are reasonable and prudent, and design
implementation and maintenance of 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 Ind AS financial statements that give a true
and fair view that are free from material misstatement
whether due to fraud or error.

KEY FINANCIALS