1 6~'·,·f~ CHn!'dlqii1lcn~OfJUfJldf lrJJdfes ~,, ('l.1Tm mcfiTt ......Chairperson’s Message Dear Shareholders, Ladies and Gentlemen, On behalf of the Board of Directors of The

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Navratna Company(ISO 9001:2015, ISO 14001:2015

& 'SO 45001 :2018 Certified)

CHn!'dlq ii1lcn~OfJUfJldf lrJJdfes ~,, »>('l.1Tm mcfiTt CfiT~) ~~ )~~: fuf1i"rT ~, 245 l1TGJ'1 q;mT\rs, 'Tit - 400 02 I. .•••.•••-..- •••••-q;l-;r: 91-22-2202 6666,22772000 m: 91-22-2202 6905 ~: www.shipindia.com

The Shipping CDrpDratiDnO/India Ltd.(A GOVERNMENT OF INDIA ENTERPRISE)Regd. Office: Shipping House, 245, Madame Cama Road, Mumbai-400 021. Ph: 91-22 2202 6666, 2277 2000Fax: 91-22 22026905· Website: www.shipindia.com. m~/CIN·L63030MH1950GOI008033

Ref: A 10-SEC-BD-808 Date: 08.09.2020

To ,Corporate Relationship Department, The Manager, Listing Department, TheBombay Stock Exchange Ltd., National Stock Exchange of India Ltd.,1st floor, New Trading Road, 'Exchange Plaza',Rotunda Building, P.J. towers, Bandra- Kurla Complex,Dalal Street, Fort, Bandra (East),Mumbai - 400001 Mumbai - 400051.BSE Scrip Code- 523598 NSE Trading Symbol- SCI

Sub: Corrigendum to 70th Annual Report 2019-2020

Dear Sir/ Ma'am,

The Corrigendum is being issued with reference to our letter dated 25.08.2020 with respect toNotice of the 70th Annual General Meeting (AGM) and Annual Report for the Financial Year2019-2020.

The Shareholders of the Company are requested to read the second line of the Dividend Paraon page No. 6 under 'Chairperson's Message' as under:

"The Board of Directors very responsibly giving due consideration to sustainability on allaccounts have recommended a dividend of Rs.0.75/- per equity share of face value of Rs.10/-each subject to your approval at the Annual General Meeting."

Enclosed herewith the Revised Annual Report for the Financial Year 2019-20, which shall alsobe uploaded on the Website of the Company.

Kindly take the same on your records.

Thanking You,Yours Faithfully,

~ 'ltffifm ~~ f.:p-p:r ftlnR:6For THE SHIPPlt'G CORPORATION OF INDIA LTD,

~~i"CfR" ~/DIPANKAR HALDAR

~~ ~ (~cf> l1P:f~") ~ ~ ~Executive Diiector (Legal Affairs) & Company Secretary

170th Annual Report 2019 - 2020 The Shipping Corporation of India Limited


VISIONTo emerge as a team of inspired performers in the field of Maritime Logistics, Offshore, Port and Terminal Management, serving Indian and global trade.

MISSIONTo serve India’s overseas and coastal seaborne trade as its primary flag carrier, and be an important player in the field of global maritime logistics with focus on: Maintaining its ‘Numero Uno’ position in Indian Shipping. Establishing a major global presence in energy-related, dry bulk and niche container shipping

markets. Evolving reliable and cost-effective business models to exploit emerging opportunities in

maritime and allied industries. Achieving excellence in Quality, Occupational Health, Safety and Environmental Management

Systems.OBJECTIVES

The Shipping Corporation of India Ltd. works to fulfill its objectives as mentioned below:To provide its clientele safe, environmentally sustainable, reliable, efficient and qualityshippingservices,complyingwithalllegalandotherrequirements.

Tobeanoptimallyprofitable,viable,ethicalandsociallyresponsiblecommercialorganizationcontributing to the national economy by securing a reasonable return on capital and serving the nation’s needs.

Toownoracquireanadequate,welldesignedandefficientfleettocatertothedemandofglobal maritime trade through options like leasing, demise charter, joint ventures and other innovativefinancialmeasures.

To be a major player in India’s offshore and other marine activities and to continue to explore opportunitiesfordiversificationforsteadygrowthoftheCompany.

Toenhancecompetencyandprofessionalismamongitsfleetandshorepersonnelthrougheffective and dynamic Human Resource Management.

Tocontinuallyimproveitsefficiencyinprocessandtechnology,adoptingvariousmeasuresincluding E-governance and optimum use of Information Technology.

TominimizerisksandenvironmentalimpactsforachievingSafety,OccupationalHealthandEnvironmental performance.

2 70th Annual Report 2019 - 2020 The Shipping Corporation of India Limited

CORPORATE INFORMATION 3

CHAIRPERSON’S MESSAGE 4

BOARD OF DIRECTORS 9

EXECUTIVE DIRECTOR AND GENERAL MANAGERS 15

DECADE AT A GLANCE 16

GRAPHS 17

SALIENT STATISTICS 2019-20 19

NOTICE OF MEETING 20

DIRECTORS’ REPORT 31

REPORT ON CORPORATE SOCIAL RESPONSIBILITY 2019-20 64

BUSINESS RESPONSIBILITY REPORT FOR THE YEAR ENDED 31ST MARCH, 2020 66

FORM MGT - 9 EXTRACT OF ANNUAL RETURN 74

FORM AOC - 1 STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIAR-IES / ASSOCIATE COMPANIES / JOINT VENTURES 85

FORM AOC- 2 PARTICULARS OF CONTRACTS/ ARRANGEMENTS ENTERED INTO WITH RELATED PARTIES 87

FORM MR-3 SECRETARIAL AUDIT REPORT FOR THE YEAR ENDED 31ST MARCH, 2020 88

REPORT OF THE DIRECTORS ON CORPORATE GOVERNANCE 91

INDEPENDENT AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE 109

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA 110

STANDALONE FINANCIAL STATEMENTS •INDEPENDENTAUDITORS’REPORT•ANNEXURESTOTHEINDEPENDENTAUDITORS’REPORT•STANDALONEBALANCESHEETASON31STMARCH2020•STANDALONESTATEMENTOFPROFIT&LOSSFORTHEYEARENDED31STMARCH2020•STANDALONECASHFLOWSTATEMENT•STANDALONESTATEMENTOFCHANGESINEQUITY•SIGNIFICANTACCOUNTINGPOLICIES&CRITICALACCOUNTINGESTIMATESANDJUDGEMENTS•NOTESTOFINANCIALSTATEMENTSFORTHEYEARENDED31STMARCH2020

112117124126127129130140

CONSOLIDATED FINANCIAL STATEMENTS • INDEPENDENTAUDITORS’REPORT•ANNEXURESTOTHEINDEPENDENTAUDITORS’REPORT•CONSOLIDATEDBALANCESHEETASON31STMARCH2020•CONSOLIDATEDSTATEMENTOFPROFIT&LOSSFORTHEYEARENDED31STMARCH2020•CONSOLIDATEDCASHFLOWSTATEMENT•CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY•SIGNIFICANTACCOUNTINGPOLICIES&CRITICALACCOUNTINGESTIMATESANDJUDGEMENTS•NOTESTOCONSOLIDATEDFINANCIALSTATEMENTSFORTHEYEARENDED31STMARCH2020

187193198200201203204214

GLOSSARY 267

IRQS CERTIFICATE OF APPROVAL 272

INDEX

2


CORPORATE INFORMATION

BOARD OF DIRECTORS#

Smt. H. K. Joshi Chairperson & Managing Director & Director (Finance) Addl.charge

Shri Sanjay Kumar Government Director

Shri Satinder Pal Singh Government Director

Dr. Gautam Sinha Independent Director

Shri Raj Kishore Tewari Independent Director

Dr. P. Kanagasabapathi Independent Director

Shri Rajesh Sood Director (Technical & Offshore Services)

Smt Sangeeta Sharma Director (Liner & Passenger Services)

Shri Surinder Pal Singh Jaggi Director (Personnel & Administration)

Shri Vijay Tulshiramji Jadhao Independent Director

CA Mavjibhai B Sorathia Independent Director

Shri Pramod Kumar Panda Independent Director

Shri Atul Ubale Director (Bulk Carrier & Tanker)# Except for first three names, all other names are in the order of date of appointment.

Shri Dipankar Haldar Executive Director (Legal Affairs) and Company Secretary

Shri Lawrence C Serrao Chief Financial Officer w.e.f 05.02.2020

STATUTORY AUDITORS* M/s V. Sankar Aiyar & Co. M/s Haribhakti & Co. LLP *M/s G.D. Apte & Co. and M/s. A. Bafna & Co. had conducted limited review audit of the Company for quarter ended June 2019. *M/s Haribhakti & Co. LLP and M/s V. Sankar Aiyar were appointed as Statutory Auditors of the Company for FY 2019-2020 and had also conducted limited review audit of the Company for quarter ended June 2020. For Financial Year 2020-21, M/s. CHOKSHI & CHOKSHI LLP and M/s. V SANKAR AIYAR & Co. are appointed as Statutory Auditors.

SECRETARIAL AUDITOR Shri Upendra Shukla, Practicing Company Secretary

REGISTERED OFFICE Shipping House, 245, Madame Cama Road, Mumbai 400 021.

REGISTRAR & TRANSFER AGENTS M/s. Bigshare Services Pvt. Ltd. 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai 400 059. Maharashtra.

3

4 70th Annual Report 2019 - 2020 The Shipping Corporation of India Limited4

Chairperson’s Message

DearShareholders,LadiesandGentlemen,

OnbehalfoftheBoardofDirectorsofTheShippingCorporationofIndiaLtd.,Iampleasedtoplacebeforeyou,ouresteemedshareholders,the70thAnnualReportofyourCompanyforthefinancialyear2019-2020.ThereportenumeratesexhaustivelyyourCompany’sperformanceforthefinancialyearended31stMarch2020.Itakethisopportunity,however,totouchuponsalientfeaturesofyourCompany’sachievementsduringthelastfinancialyear.

Whenthegoinggetstough,thetoughgetgoingandtheclichéseemsmorethanapttodescribeyourCompanyatthisjuncturewhichhasdisplayed immense resilience, fortitude and dexterity in its operations, systems and functions during the crisis which struck us towards the end of the year. Operations across all the sectors were impacted by the outbreak of the pandemic and its cascading effects were ably sustainedbyyourCompanyduringthesetryingtimesinthebackdropofawell-documented“BusinessContinuityPlan”preparedinadvancetomeet theeventualityof the lockdown imposed from24/3.Theconsequent restrictiveworkscenariobrought in itswakemultifacetedproblemswhichyourcompanybracedwellowingtoitspreparednessforsuchaneventuality.Wepre-empteddisruptionstotheoperationsintwophases,initially,byenvisioningthemodalitiesofanalternatePlantodealwithananticipatedconfinementwhichseemedinevitableyetunprecedented,andlater,focusingonexecutingthePlanandrealigningitaswarrantedtotheever-changingrequirements.ActionsweretakentoinstitutetheWorkFromHomemechanismandimplementingShipboardOutbreakManagementPlanandthesituationonboardallownedandmannedvesselswascloselymonitoredbytheFleetandOperationsDivisions.ThechallengeswereformidablebutanevolvingPlanheldusingoodsteadandtheywereovercome.AnditmakesusproudtoconveythatyourCompanycontinuedtoensuretransportationofessentialsuppliesanduninterruptedtradeflowrequirementsdespitetheconstraints.

570th Annual Report 2019 - 2020 The Shipping Corporation of India Limited 5

Impact of the PandemicThe shipping industry had already been contending with the global slowdown and trade wars during the year and an expectation of a recovery of world economy seems remote now due to the pandemic which has caused enormous disruption impacting all sectors and walks of life, the effects of which would keep transcending across business operations and segments in various ways and at different points in time which cannot be predicted with any degree of certainty.

Maritime sector has been affected severely and themost significant impact has been feltwith respect to the crewchange,which theInternationalMaritimeOrganisation(IMO)atthegloballevelandtheDGShippingonthenationalfront,continuetoregulateandfacilitatewithissuanceofvariousSOPsandordersforcontrolledcrewchangetobringinasmuchexpediencyasisfeasibleconsideringthedynamicsofthepandemic.Theincreasedcostofsuchcrewchangeshasnotdeterredthecompanyinputtingtheseafarersfirstandensuringtheirwelfare.Crewchangeshavebeenaddressedwith‘SafetyFirst”andensuringaqualitativecrewchangewithduecare,compassion,ensuringthattheseafarerreachedhishomehealthyandsafe.Duecarewasalsotakentoensurethattheonsigningcrewwasinfectionfreesothatfleetoperationswerenotdisrupted.YourCompanyhasadheredtostrictpreventivemeasuresandtillthetimeofmywritingthismessage,yourentireownedfleetremainsCOVIDfree.

As the lockdown progressed, innumerable challenges kept surfacing which were met with due adroitness, empathy and expertise which were theoutcomeofsheerdiligenceandtenacitythatyourCompany’semployeesexhibited.Healthconcernsoftheemployees,shoreandafloat,were accorded priority and while hygiene kept getting upgraded on one hand, advisories were issued from time to time, on the other, for their safetyinlinewiththeguidelinesissuedbytheMinistryofHomeAffairsandtheDGShippingfortheshoreandfleet,respectively,includingtheinstallationofAarogyaSetuApponthemobilesandonlinestatusdeclarationformsfortheemployeeswhoattendedofficeduringexigenciesduringlockdownandwhentheUnlockPhasecommenced.MeasurescontinuetobetakenandinteractionsbetweentheManagementandtheemployees continue to share mutual concerns and promote a positive environment and enthusiasm during these challenging times.

OperationsShipping markets in 2019-2020Shippingplaysavitalroleinfacilitatingglobaltrade,withabout85%ofalltrademovedbysea.InCalendaryear2019seabornetradelevelsgrewby1%toreach11.9bntonnes,almostdoublethatattheturnofthemillennium.Inadditiontothislong-termgrowthtrendinvolume,therehasbeenabroadeningofthecargobaseandincreasingcomplexities.Besidesthetraditionalinfluenceoftheglobalbusinesscycleandcommodityprices,otherfactorsareincreasinglyimpactingtradeandfreight:theUS-Chinatradewar,theimpactofsanctions,thegrowthofUSenergyexportsandfleetsupply interruption. Inshippingmarkets thathave reducedsurpluscapacity in recentyears, these tradecomplexitiesalsohaveagreaterinfluenceonfreightratevolatility.

DryCargomarketremainedlacklustreduring2019-20.Inthebeginningoffinancialyear,BDIason1stApril2019wasat685pointsandon31stMarch2020closedat626points.DuringtheyearearningsforPanamaxandSupramaxBulkersremainedsubdued.Higheroperatingcosts,weakerimportdemandinChinaandasupplysideinfluxadverselyaffectedthedrycargomarket.

In thecrude tanker segment,Q1of2019-20witnessedfleet growthacceleration,withplentyof tankerdeliveries seen. Inevitably, spotearnings fell,averagingclose tooperatingexpensesonmost routes.The tidegraduallystarted to turn inQ2of2019-20,whilst tankerearningsjumped,mostnotablyintheVLCCandAframaxsegmentsamidaperfectstormofimprovingfundamentals,geopoliticaleventsandtheIMOrelateddisruptions.CrudetankerdemandundoubtedlybenefitedfromtheongoingrobustgrowthinUScrudeexportsthroughouttheyear(andgainsinNorway/Brazilproductiontowardstheendof2019),withincreasesinnon-OPECsupplyeventuallymorethanoffsettingOPEC+productioncuts.

InContainerindustrygrowthinfleetcapacitycontinuedtoexertdownwardpressureonratesformostmajortraderoutes,includingthebusywestbound Asia–Europe lane.

Mostof thedemand foroffshoresupportvessels (OSV)canbeattributed to the risingdeepwaterdevelopmentactivities,drivenby thedecliningproductionfromthematurefieldsandincreasingcrudeoildemand.ThedemandforoffshoresupplyvesselsontheIndiancoastremainedflatthroughouttheyearwithshadesofimprovementduringsomemonths.

Market OutlookEvenasChina,thebiggestdriverforthedrybulkindustryrecovers,theimpactonshippingdemandfordrybulkindustryremainstobeseen.Some of the stimulus measures that have been, or are expected to be, announced concentrate on infrastructure and housing investment, whichwillboostdemandforrawmaterials.Butotherindustriesthatprovidedemandfordrybulk–suchassteelandaluminiumfortheautomotive industry – have all but collapsed.


It is expected trading in all commodities to fall, including the grains trade. Lower commodity demand comes as a direct result of thelockdowns, as well as from the ensuing economic slowdown. The International Energy Agency (IEA) expects demand for coal will fall by 8% in2020,withlowerdemandcomingfromlowerelectricityconsumptionbecauseoflockdownsandreducedmanufacturingactivity.

Giventheovercapacity–whichwasalreadyplaguingthemarketafteryearsofsupplygrowthoutstrippingdemand,theoutlookmayyetdeteriorate further if lockdown. Measures last longer than expected, or have to be reinstated to avoid a new wave of infections, but there is little prospect of an improvement. Even with large government investments in infrastructure, the global recession will doubtless lead to lower demand and low freight rates.

Undernormalcircumstances,freightratesinthecrudetankermarketmoveintandemwithoildemand.Weakoildemandnormallyleadstolowerrefineryrunsandweakcrudeoiltrade,whichinturntranslatesintolowerfreightrates.Arecord30%declineinglobaloildemandinApril2020alsoforcedrefinerstocutproduction,whichinturnputthebrakesonglobalcrudeoiltrade.DespiteahistoricdeclineinoilpricesbecauseofCOVID-19,majoroilproducerskeptpumpingoilatfullthrottleespeciallywhenSaudiArabiaandRussiastartedthepricewar.Theconsequentoilgluttothetuneof30mbpdthreatenedtooverwhelmglobalonshorestoragecapacityandledtoasteepcontangoinoilprices,whichinturnresultedinasuddenriseinfloatingstorageofoiltherebypushingtankerfreightratesnorthwards.

About11%ofthecrudetankerfleet(82VLCCs,70Suemaxesand80Aframaxes)waslockedinfloatingstorageattheendofApril2020,squeezingtonnagesupplyinthemarket.Inaddition,thepandemic-relatedincreaseinportdelaysandslowsteamingbytankersduetoweakdemand further suffocated vessel supply in the market, underpinning freight rates.

WitheasingofCOVID-19-enforcedlockdowns,theoildemandisexpectedtorecovergraduallyandtheoilstoredonvesselswillbethefirsttocomeoutofstorage.Thisshallresultintheincrementalvesselscurrentlylockedinfloatingstoragetoreturntotradebytheendoftheyear,whichinconjunctionwiththeexpansioninfleetwillinflatevesselsupplyinthemarketandimpactthefreightrates.Theexpectedincreaseinoildemandontheotherhandwillnotfullytranslateintohighertradeintheneartermas,inadditiontooilstoredonvessels,refinerswilluseonshore stocks which in turn will cap crude oil trade.

InContainershipping,nosuddenbounceback indemand isexpected.Salesofcontainerisedconsumergoodshavebeensomeof thehardest-hit by lockdown measures, and lower consumer spending power is likely to persist for a prolonged period.

Intheoffshoresegment,neartermoutlooklooksgrim.Duetorecentfall incrudeoilprices,theactivitiesoftheE&PplayershavebeenaffectedandmajorityofE&Pcompaniesaregoingslowwiththeirprojects.

FinancialsItgivesmeimmensepleasureandsatisfactiontoinformyouthatSCIhasreportedastandalonenetprofitofRs.302.35croresexcludingOtherComprehensiveIncome(OCI)againstanetlossofRs.121.99croresinthepreviousyear(consolidatednetprofitofRs.336.48croresexcludingOCIasagainstanetlossofRs.62.66croresinthepreviousyear).YourCompanybeingadiversifiedcompanyhasbeenabletoabsorbthelossesofboththebulkandcontainersegmentswhichhavebeenoffsetbytheprofitsofboththeTankerandtheOffshorefleet.TheOperatingRevenueclockedthisyearwasthehighestachievedoverthelastdecade;itincreasedfromRs.3872.85CroreinFY2018-19toRs.4425.44CroreinFY2019-20.YourCompanyhasbrokenrecordsonseveralfrontsacoupleofthemalmostoveradecade,andweare genuinely happy to be announcing this.

It is indeedamatterofgreatpride for theCompanythatwhileweworkedon improving theoverallfinancialhealthof thecompany, theCompanyyetagaincreatednewmilestones.YourCompanyachievedthedistinctionofbeingthefirstCPSEamongtheNavratna/Maharatnacompaniestohaveadoptedanddeclaredthefinancialresultsinthepandemicwhilealsobeingwellaheadofmostprivatecompaniesindoingso.Itmightwellbeappreciatedthattherestrictionsimposedduetothelockdownfrom24/3createdvariouschallengeswhichwereaddressedwithasenseofpurposefulnessandagility.Alloperations,ashoreandafloat,continuedunhindered,thefinancialstatementstoowerepreparedwellintimedespitetheconstrainingconditionsoflockdownandwereremotelyauditedbytheJointStatutoryAuditors.TheresultswereadoptedbytheSCIBoardinitsmeetingheldon29thMay2020withoutavailingofanyextensionsgrantedbytheSEBIduetothepandemic.ThestatutorymeetingswereheldviavideoconferencingwithanalmostfullattendanceoftheBoardmembersjoininginfromtheirrespectivelocations.ThisisonlytodemonstratethecommitmentoftheSCIteamtothecompanyagainstallodds.TheCompanyhasalsogotacleanunqualifiedreportfromthejointstatutoryauditorsaswellas“NIL”CommentsfromtheComptrollerandAuditorGeneralofIndiaonthefinancialstatementsforFY2019-20.

DividendTheCompanyinthetimesofthePandemichasendeavoredtobringcheerbyreturningtothedividendpayinglistafteralonggapofeightyears.TheBoardofDirectorsveryresponsiblygivingdueconsiderationtosustainabilityonallaccountshaverecommendedadividendof


Rs.0.75/-perequityshareoffacevalueofRs.10/-eachsubjecttoyourapprovalattheAnnualGeneralMeeting.TheBoardofDirectorsremains grateful to all the stakeholders for the unstinted support faith and patience that you had reposed in us during the global downturn facedbytheshippingindustryfrom2008onwardsandwhichcontinuedwithoccasionalspurtsthatdidnotsustainlongenough.Wearealsowellseizedthatwehaveanincreasedresponsibilityofmaintainingandsustaining,ifnotsurpassingthepreviousperformanceandgrowthdespite the adversities which today has taken the form of the unprecedented pandemic and its unpredictable impact for future as they unfold. Challengingtimeslieaheadforallofusandwearecommittedtostriketherightbalanceandbraceourselvesappropriatelywiththesameconviction, commitment, perseverance and resilience that we have displayed in the past.

AstheNation’s largestShippingLineandproudNationalFlagCarrier,TheShippingCorporationof IndiaLtd.carriestheNation’shopes,dreamsandaspirationsofAtmanirbharBharatasitsailsacrossvastseasandfarflungcontinentstoreinvigorateandreaffirmtheNation’semergenceasamajorGlobalPower.

Acquisitions and DisposalsTheyear2019-20commencedwithafleetstrengthof61vesselsand two tankers,m.t.Ankleshwarandm.t.MaharajaAgrasen,weredisposedofduringthecourseoftheyearandyourcompanywith59VesselstodayisthelargestIndianShippingcompanycateringtotheoverseasandcoastaltransportationofgoods.Ithasovertheyears,successfullyretainedits‘NumeroUno’positioninIndianShippingandhasbeenafrontrunnerintermsofgrowth,diversificationandreplenishmentofitstonnage.Withayoungerandmodernfleet,yourcompanywillbefullygeareduptotakeadvantageofthebetterfreightmarketconditions.Yourcompanyenjoysanenviablepositionintermsoftheaverageageofthefleetandhavingoneoftheyoungestmerchantshippingfleetsintheworld.YourCompanywishestoaugmentitstonnageandishopefulofacquiringvesselsbasedonthemarketconditionsandviability.

Corporate Social ResponsibilityYourcompany’svaluesasasociallyresponsibleorganisationarewellentrenchedinitsactivities.Thisyear,theemphasishasbeenonschooleducation for underprivileged children, eradication of hunger and malnutrition, women empowerment, health care and other areas of social upliftment.

YourCompany’semployeesincludingseafarershavevoluntarilycontributedoneday’swagestoReliefFundsamountingtoRs.108.69lacstofighttheCOVID19pandemic.AcontributionofRs.36.97lakhshasalsobeenmadetowardsPM-CARESaspartofitsCorporateSocialResponsibilitysumminguptoRs.145.66lakhs.TheBoardofDirectorsinitsmeetingheldonthe29thofMay,2020hasplacedonrecordand appreciated this voluntary effort and display of solidarity by the employees towards the national cause.

Corporate GovernanceYourCompanyhasalwaysbeensteadfast in itsorientation towards instituting andmaintaining fair, transparent andethical governancepractices inachieving long-termcorporategoalsand toenhancestakeholders'value.TheReportofDirectorsonCorporateGovernanceplacedintheDirectors’ReportcomprehensivelydescribesthestructureandpracticeofCorporateGovernanceofyourCompany.InadditiontocomplyingwiththerequirementsofCorporateGovernanceemanatingfromvariousstatutes,rulesandregulations,yourCompanyisalsoincompliancewiththeDPEguidelinesonCorporateGovernance.TheCorporateGovernanceissuesarekeptinconstantfocusbytheBoardofDirectorsofyourCompanyandyourCompanycomplieswiththeapplicableguidelinesbothinletterandspirit.

Other developmentsYourcompanyon1stofJanuary2020smoothlyandsuccessfullytransitionedtobeingcompliantwithIMO's0.5%sulphurfuelregulationandthevesselsremainedcompliantandarebeingsuppliedlowsulphurfueloilsince1stJanuary,2020.

YourCompanyhasthehonourofcontinuedassociationwiththeIndianNavythroughdeploymentofSCISabarmati,offshorevessel, forconductingSeaAcceptanceTrials(SAT)foritsnewDeepSubmergenceRescueVehicle(DSRV)equipmentontheWestandEastCoastsofIndia and is proud to serve the project of national importance.

YourCompanycontinuedtodisplaycourageandcommitmentwhenSCI’soffshorevesselm.v.‘SCIUrja’towedadistressedtrawlerwith18fishermenduringtheseveretropicalstorm‘KYARR’ofOctober2019tosafety.

YourCompanyhasbeenidentifiedforstrategicdisinvestmentbytheGovernmentofIndiaandtheDepartmentofInvestmentandPublicAssetManagement(DIPAM)ofMinistryofFinancehasappointedTransactionAdvisors,AssetValuersandLegalAdvisorsandtheduediligenceprocess is in progress.

YourCompanycomplieswiththeGovernmentofIndia'sPublicProcurementPolicy(PPP)forMSEsOrder,2012asallitstendershavearelevantclausegivingthebenefitsandpurchasepreferencesavailabletoMSEsintheOrder.DuringtheFinancialyear2019-20,thetotal


procurementofGoodsandServicesfromMSEsisaround30.68%asagainstthetargetof25%setintheOrderdulyamendedinNovember2018.YourCompanyactivelyparticipatesinVendorDevelopmentProgramsorganisedforMSEsacrossIndiaandprovidesthedetailsofprocurementsandservicesrequiredenableMSEstoparticipateinSCItenders.

IamhappytosharewithallofyouthefollowingaccoladesreceivedbyyourCompany–

• ‘MostCompassionateEmployerofIndianSeafarers’atNMDCelebrations

• ‘StrategicInvestments’and‘HRExcellenceAwards’undertheFinancialandNon-FinancialCategoryrespectivelyat‘7thPSUAwards-Governancenow’

• FirstPrizeforBestEnterpriseawardatthe30thNationalMeetofWIPS,atributetoExcellenceinPublicEnterpriseManagementunderNavratnaCategory

• MumbaiRegionalRoundofAIIMA-4thNationalCompetitionforManagersinPSUcategory

• “TheShippingCompanyoftheYear-IndianFlag”atSamudraManthanAwards

• Ranked1stamongtheKeyOrganizationsunder theSwachhBharatMission2019–SwachhSurvekshan initiativeof theMinistryofShipping

• SecondPrizeforSwachhtaPakhwada2019,MinistryofShipping

YourCompanyalsoreceivedthefollowingrecognitionsapartfromtheaboveaccolades

• RecognitionFromNationalUnionofSeafarersofIndia(NUSI)for'employingthehighestnumberofwomenseafarersonMerchantNavyShips'onthe'NUSIFounderMohamedEbrahimSerangday'

• "CertificateofAppreciation"fromtheNauticalInstitute,London,IndiaSWBranchAwardtoCapt.RohanJNandTeamOSVColonelSPWAHIfortheirRescuemissionoffMumbaiHigh.

• "CertificateofAppreciation"fromtheNauticalInstitute,London,IndiaSWBranchAwardtoMrs.HKJoshiandTeamSCIforpivotalrolein handling the crew management crisis during the pandemic.

AcknowledgementsI would take this opportunity to express my gratitude to the Government of India for its support to your Company. I wish to thank ShriMansukhL.MandaviyaJi, theHonourableMinisterofState(IndependentCharge)forShippingandMinisterofStateforMinistryofChemical andFertilizers,Governmentof India forhis vision, leadershipandconsistentguidance toyourCompany. Iwouldalso like toacknowledgewithgratefulnessthecounselanddirectionsofShriGopalKrishna,erstwhileSecretary(Shipping)GovernmentofIndiaduringhistenureforthegrowthofyourCompany.IalsowelcomeDr.SanjeevRanjan,Secretary(Shipping)GovernmentofIndiaandthankhimforhiswhole-heartedsupportandguidance.MysincerethanksarealsoduetotheotherofficialsoftheAdministrativeMinistry,otherMinistriesandDepartmentsoftheGovernmentofIndia.IwouldalsoliketoexpressmygratitudetowardstheDirectorateGeneralofShippingforitssupportandunderstandingofvariousproblemsbeingfacedbytheIndianshippingindustryandspecificallybyyourCompany.Ialsowishto express my special appreciation towards the seafarers our key workers during the pandemic, all the shareholders, stakeholders, my colleaguesontheBoardofDirectorsandallthefloatingandshoreemployeesfortheircontinuedsupportovertheyears.

Smt. H.K. Joshi,

Chairperson & Managing Director


BOARD OF DIRECTORS

Smt. H.K. Joshi - Chairperson & Managing Director& Director (Finance) Addl.chargeSmt. H.K. Joshi, Chairperson andManaging Director, joined SCI on 5th February, 2015 as Director(Finance)andwasalsoappointedasCFO,SCIw.e.f.thesamedate.Duringhertermlastinglessthanfiveyears,sheheldmultipleadditionalchargesfromtimetotimeattheBoardlevel-Director(Personnel&Administration)in2017-18,Director(BulkCarrier&Tankers)in2019,CMDfrom12thSeptember2019consequenttocompletionofthetenureoftheformerCMDandcurrentlysheholdstheadditionalchargeofDirector(Finance)w.e.f.19thDecember2019whenshewasappointedbytheGovernmentofIndiaastheChairperson&ManagingDirector,SCI.With a very rich and diversified experience spanning over three decades with ONGC, a MammothMaharatnaPSU,herexperienceincludesalmosttwodecadeswithONGCVideshLimited(OVL–overseasarmofONGC)whichlooksaftertheinternationalbusinessacquisitionsofONGCwhereinshewasactivelyassociatedwiththepathbreakinginternationaltransactionswhichledthecompany(OVL)toturnaround.This assignment gave her a lot of exposure and opportunity to travel and brought an all-round corporate developmentofherprofessionalattributestoInternationalstandardsinadditiontopolishingherfinancialacumen.ShestartedhercareerasaLecturerinDelhiUniversityandjoinedthecorporateworldin1984.SheisamemberoftheInstituteofDirectors(IOD),FellowMemberofTheInstituteofCostAccountantsofIndia,LifememberoftheInstituteofPublicAdministration,rankholderinPost-GraduationinCommerce(FinancialManagement)fromDelhiSchoolofEconomics,B.Com(Hons.)fromDelhiUniversity,MastersofBusinessAdministration(MBA)-FinancialManagement.ShebelievesincontinuouslearningandhasPostGraduateDiplomasinHumanResourceManagement,ManagementandFinancialManagementaswell.Smt.H.K.Joshiwasconferredwith‘CEOwithHROrientation’Awardat the28thEditionoftheWorldHRDCongress2020andwith‘SailorTodaySeaShoreAwards2019’underthecategoryof"WomanofSubstance".ShewasalsohonouredwiththeBestWomanEmployeeAward1stPlace(ExecutiveCategory)bytheForumofWomeninPublicSector(undertheaegisofSCOPE)in2018.Shewasawarded“TheTenthIndiaCFOAwards–ExcellenceinFinancetoenableaTurnaround”hostedbyInternationalMarketAssessmentIndiaPrivateLimitedinassociationwithPierianServicesinMay2016.Smt.Joshihasalsobeentherecipientof“TheMostInfluentialCFOsofIndiaAward”fromCharteredInstituteofManagementAccounts,UKfortwoyearsinsuccessionviz.2015and2016andthe“CMACFOAward2014”fromTheInstituteofCostAccountantsofIndia.Dynamic, resultorientedwithaneye for identifying talentshebelieves thathuman resourcesare theintegral assets of a company. She believes in team work which is evidenced with the various group awardsthatshereceivedinherpreviousassignmentwithONGC.

Shri Sanjay Kumar - Government DirectorShri.SanjayKumarIAS,1992Batch.PriortothishewasworkingasJointSecretary(Institutions),DepartmentofSchoolEducation&Literacy,MinistryofHumanResourceDevelopment,Governmentof India,NewDelhi.LookingafterallGovernmentof India Institutions likeKVS,NVS,CBSE,NIOS,CTSA,NCERTandNCTE.HehaswideexperienceandhandledseniorpositionsinbothCentralGovernmentandStateGovernmentindiversefieldslikeFinance,IndustriesandCommerce,conductofelections,districtadministration,economic policies and school education. Qualifications-MastersinBusinessAdministration(MBA)andICWA.


BOARD OF DIRECTORS

Shri Satinder Pal Singh - Government DirectorShriSatinderPalSingh,JointSecretaryintheMinistryofShippingwasappointedaspart-timeOfficialDirectorontheBoardofDirectorsofShippingCorporationofIndiaLtd.inAugust2017.ShriSatinderPalSingh,anIPSOfficerof1995batchfromHimachalPradeshcadreisapostgraduateinLawfromBrunelUniversity,London.ShriSinghalsoholdsaMaster’sdegreeinPoliceManagementfromOsmaniaUniversity,Hyderabad.HehasservedinseniorpositionsintheStateGovernmentofHimachalPradeshincluding InspectorGeneralofPoliceandSpecialSecretary in theDepartmentofHome.Prior tohispresentpostingasJointSecretaryintheMinistry,ShriSinghhasservedasDirectorintheMinistryofHousingandUrbanAffairs.

Dr. Gautam Sinha - Independent DirectorDr.GautamSinhahasbeeninductedasanIndependentDirectorontheBoardofShippingCorporationof IndiaLtd inSeptember2017.Dr.SinhareceivedhisPhDforhis thesisonDirectionsDimensionsofcustomerserviceinIndianSteelIndustryfromDepartmentofIndustrialEngineeringManagement,IIT Kharagpur in 2001. Dr. Gautam Sinha is anM Tech (Industrial Engineering Management) fromIIT- ISMDhanbad in1990andBTech(Production),BITSindri in1978.Presently,he is theFounderDirectorofIIMKashipurfrom2012onwards,whereinhehadbeenawardedforhismeritoriousworkindifferencefieldsofacademics.Dr.Sinhahasbeenconferreduponvariousawardsviz.;‘BestTeacherinOperationsManagement’awardatAsia’sBestB-SchoolAwards,Singapore, ‘100most influentialDirectors in India’,‘Thought Leader Award’, ‘Institution Builder’ to name a few. Prior to his presentpositionasDirector,IIMKashipurheheldthechargeofDirector,LalBahadurInstituteofManagement,Delhi fromApril2011 toMay2012 responsible forall academicandfinancial resultsof theschooland reporting to Board of Governors. Dr.Sinha has assumed various responsibilities in the field ofacademicsasProfessor,AssociateProfessor in IITKharagpur from2002-2011.AsProfessor in IITKharagpur, Dr.Sinhawas involved in teaching OperationsManagement, Supply ChainManagement,ManufacturingStrategy,ServiceOperationstoMBAstudents,conductingMDPsforexecutives,guidingPhDresearchersinOperationManagementanddesignednewExecutiveMBAProgrammewhichwaslaunchedatKolkataandBhubaneshwar.PriortohiscareerinIITKharagpur,fromtheperiod1990-2002,Dr.SinhaalsoheldchargeofSeniorDeputyDirector inManagementTraining Institute(MTI)ofSAILwherein, he implemented ISO9001:1984QAsystem in1993andhelpedMTIwinGoldenPeacockNationalQualityAwards.From theperiod1979-1990heheld responsibilityas IndustrialEngineer inBokaroSteelPlant,SAILandasTraineeEngineerinLarsenToubrofrom1978-79.Dr.SinhahasgottohiscreditvariouspublicationsonResearchmethodology,CustomerRelationshipManagementinRetailetc.Hehasreceivedtraininginteaching/learningpedagogyatHarvardBusinessSchoolin2013andTQMat InstituteforResourceDevelopment,Marylandin1991.HehasalsoundertakenconsultancyassignmentsandMDPsforvariouscompaniesinIndiaandabroad.CurrentlyMr.GautamSinhaisViceChancellor,IMSUnisonUniversity,Dehradun.


BOARD OF DIRECTORS

Shri Raj Kishore Tewari - Independent DirectorShriRajKishoreTewarihasbeeninductedontheBoardofSCIinSeptember2017.HehasdonehisB.Sc. (Hons)andM.Sc. (Physics) from theUniversityofLucknow,M.Sc. (FiscalStudies) from theUniversityofBath,U.K.andLLBfromtheUniversityofMumbai.ShriTewariwasrecruitedtotheIndianRevenueServicein1976andhasbeenapartoftheDirectTaxesAdministrationsincethentillretirement.Hehasexpertiseandwideexperienceofaround38yearsinmattersrelatingtodirect taxesandhasretiredastheChairmanof theCentralBoardofDirectTaxes(CBDT).Hehasbeenactivelyinvolvedinformulation,implementationandadministrationofDirectTaxespolicyoftheGovernmentofIndia.Asamember/chairmanCBDThehasattendedinternationalseminars/conferences.Hewasamemberof high level committee appointed by Ministry of Corporate Affairs for making recommendationsto strengthen the disciplinarymechanism in professional institutes of ICAI, ICSI and ICMI. He alsofunctionedasGovtNomineeinBoardofDisciplineofICAIforthreeyears.InJan2019hewasappointedCourseDirectorfor34thcourseonLegislativeDraftingconductedbyBureauofParliamentaryStudiesandTraining,LokSabhaSecretariat.

Dr. P. Kanagasabapathi - Independent DirectorDr.P.KanagasabapathiwasinductedintheBoardofSCIinNovember2017.AProfessorofManagementandAdjunctProfessorofLaw,heobtainedhisDoctorateincapitalmarketsandinvestmentmanagementasaUGCResearchFellow.HehasaPostGraduateDegreeinCommercefromtheUniversityofMadras,besidesadegreeinLaw.Known for his pioneeringfield studies in different industrial andbusinesscentres, he andhis teamhavebeentakingupstudiesfordifferentindustriesandhadcompletedamajorstudyfortheGujaratGovernment.HeisinvolvedinIndia-centricresearchandstudiesformorethantwodecadesandwasearliertheDirectorofstatelevelresearchandtraininginstitutepromotedbytheTamilNaduGovernment.He writes in English and Tamil.OneofhisbooksentitledIndianEconomic,BusinessandManagementModelsisconsideredapioneeringinitiativetowardsindianizingtheeconomicsandmanagementeducationandusedasatext/referenceinthe premier national institutions. He has been working with the central and state bodies and had served astheelectedPresidentofanagriculturalcooperativebank.

Smt. Sangeeta Sharma – Director (L&PS)Smt.SangeetaSharma tookover chargeofDirector (Liner&PassengerServices) of TheShippingCorporationofIndiaLtd.(SCI)inDecember2017.Smt.SharmahasdoneherMastersinManagementStudies fromWorldMaritimeUniversity,Malmo,Sweden.Sheholdsdegrees inMastersofPersonalManagement&B.ComfromPuneUniversity.Shehasavastexperienceofover34yearsatSCIandhasservedatvariousresponsiblelevelsinPurchase&ServicesDivision,Technical&OffshoreServicesDivision,BulkCarrier&TankerDivisionandLiner&PassengerServicesDivision.DuringhertenurewithSCI,shehasacquiredindepthknowledgeofshippingbusinessandhasbeenanimportantpillarofthecompany in bringing control and stability in operations. Her core competencies are strategic planning, commercial operations, contract negotiations, project management and personnel management.Smt.SharmawasthepremierinstartingoftheGulfandCoastalcontainerservices(SMILEService)ofSCIintheyear2008.ShehashandledcommercialoperationsofvarioussectorslikeEurope,USA,Gulf&CoastalandhasalsomanagedfeederservicesofSCI.Underherableguidance,LinerDivisionofSCIstartednewservicesonChennaiPortBlairandKolkataPortBlairroutesinlinewithGOI'splanofpromoting coastal shipping.Shewasawardedwith “WomanProfessional inShipping&Logistics” inprestigious IndiaMaritimeAward2018forheroutstandingcontributionintheshippingbusiness.Shewasfurtherawardedwith1st prizeforthe“BestWomenEmployeeAward–Executivecategory”inFebruary2019byForumofWomeninPublicSector(WIPS).ShewasalsodeclaredWinnerofMaritimeandLogisticsAwards-2019of“WomenProfessionaloftheYear”organizedbyEXIMIndiaandaddedonemorefeathertohercap.


BOARD OF DIRECTORS

Shri Rajesh Sood – Director (T&OS)ShriRajeshSoodistheDirector(Technical&OffshoreServices)ofTheShippingCorporationofIndiaLtd.sinceDecember2017.HeisaMarineEngineerholdingClassI(Motor)certificateofcompetencyissuedbyMinistryofTransportandMasters’degreeinShippingManagementfromtheWorldMaritimeUniversity,Malmo,Sweden.ShriSoodhasavastexperienceofover35yearsinvarioussegmentsofMaritimefield.Hestartedhisprofessional journeywith“TheShippingCorporationof India” in1984as a5thEngineer officer.After servingondiverse typesof ships in various ranks for 15 years, hejoined shore establishment in 1998.He gained experience performing diverse roles across variousdepartmentsincludingshipbuilding&services,tankertechnicalandbulkcarriertechnical.Hewasalsoinvolvedinanumberofshipacquisitionprojectsfromconceptualdesignstagetilldeliveryofvarioustypesandsizesof thevessels.He isalsomemberofvarious technicalcommitteesand involved informationofrules/standards.DuringhistenureasGeneralManager,hewasresponsibleforbringingmuch needed stability and control in operations.

Shri Surinder Pal Singh Jaggi – Director (P&A)Shri Surinder Pal Singh Jaggi took over as Director (Personnel & Administration) of The ShippingCorporation of India Ltd. on 24th April, 2018. Prior to assuming charge of the office of Director(Personnel&Administration)inSCI,ShriJaggiwasworkingasED(P&A),SAILCorporateofficelookingafter all functions of Personnel, Training, Estate Administration, Industrial Relations&Welfare. ShriJaggiholdsadegreeinBA(Hons.),PoliticalScience,DiplomainSocialWelfare,LLB,PGDiplomainJournalism&CommunicationandPostGraduateDiplomainHumanResourceManagement.HewasalsosponsoredforathreemonthscertificatecourseonPersonnelManagementintheRoyalInstituteofPublicAdministration,(RIPA),London.AnactiveManagementTrainerandQuizMaster,ShriJaggiisalifememberofQualityCircleForumofIndiaandNationalInstituteofPersonnelManagement.Shri Jaggi has over 37 years of experience in HR& allied functions, dealingwith diverse Key HRprocesses likeDevelopmentandImplementationofHRPolicy,TalentPromotion, InnovativeLearningand Development Initiatives, Performance Management, Employee Involvement and Engagement,Shop-floorDisciplineManagementandIndustrialRelationsinMines,WorksandNon-worksareas.HehasalsoworkedinthefieldofPublicRelations,BusinessExcellence,Liaison&Administrationetc.AtSCI,asheadofPersonnelandAdministrationDivision,ShriJaggihaslednumerousnewinitiativesto enhance employee engagement and to promote a culture of learning in the organisation. A range of training&capabilitybuildingprogramshavealsobeenlaunchedinSCIunderhisleadership.Capitalizingonhisrichexperience,SCIhastakenupsystematicreviewofpoliciesandsystems,forshoreaswellasforfleetemployees,tobringthematparwithbestacrosstheindustryandotherCPSEs.

Shri Vijay Tulshiramji Jadhao - Independent DirectorShriVijayTulshiramjiJadhaohasbeeninductedasanIndependentDirectorontheBoardofShippingCorporationof India Ltd in July2018.He is a business consultant having experienceofmore than30 years in corporate sectors.He is also amember of variousNon-Governmental and educationalInstitutionsinVidarbharegionofMaharashtralikeShriVyankateshSevaSamiti,Washimetc.Hiscorecompetency lies indeepunderstandingofagriculturesectors.He isalsoEx-DirectorofMaharashtraAgroIndustriesDevelopmentCorporation(MAIDC).He is also closely associated as Guest Faculty with various reputedManagement and EngineeringInstitutes. He has conducted various training programmes on project management and also working as an Advisor for corporate training assignments and training faculty.ShriJadhaoisalsoinvolvedinco-operativesectorsandco-operativeBanksinMaharashtralikeAkolaDistrictCentralCo-opBankLtd.HeisaSocialActivistandhissocialcontactsandexperienceinbusinessare also very helpful to the future prospects of various company.


BOARD OF DIRECTORS

CA Mavjibhai B. Sorathia - Independent DirectorCAMavjibhai B. Sorathia has been inducted as an Independent Director on the Board Of ShippingCorporationofIndialtd.inDec2018.HeisPracticingCharteredAccountantandfellowmemberoftheInstituteofCharteredAccountantsofIndia.HehasdoneB.Com(Hons)fromM.S.UNIVERSITY,BarodaandBachelorofLaw(LL.B.)fromShri.L.A.ShahLawCollege,Ahmadabad.HehasdonediplomainGerman&FrenchlanguagefromfacultyofArts,M.S.UNIVERSITYofBaroda.Heholdsmorethan33yearsofexperienceinpracticeandatvariousIndustrieslevel.HewasappointedasTrusteeonBoardofDeendayalPortTrust,Kandla–AMajorPortofIndia(FormallyknownasKandlaPortTrust.)HeisaDirectorontheBoardoftheKutchDistrictCentralCo-opBankLtd.HewasConvenerofCAcell,BJPGujaratPradesh.Heisactingtrusteeonboardofmanycharitabletrusts.HewasEx.MayorofAnjar,Kutch.He isregularspeakeratvariousprofessional forumsandprominentcolumnwriteronSwamiVivekanandandMaharshiAurobindoandMother.He is promoter of Development of GIDC, Anjar-Kutch. He was Chairman of Taxation Committee,GandhidhamChamberofCommerce.HewasChairmanofdirecttaxationcommittee,Anjarchamberofcommerce&industries.HewasPresidentofGandhidhamtaxconsultantsassociationforcontinuoustenureof14Years.HewasVice-PresidentofAllGujaratFederationofTaxConsultantsAssociation,Ahmedabad.

Shri Atul Ubale – DIRECTOR (B&T)ShriAtulLaxmanUbalejoinedSCIon15thMay,1989andtookchargeasDirector(BulkCarrier&TankerDivision)from11thNovember,2019.ShriUbaleisanalumnusofMumbaiUniversityholdingBachelorofCommerceDegreeandPostGraduateMaster’sDegreeinManagementStudies.Inacareerspanningover3decadesendowedwithrichandvastexperienceinvariousfacetsofcoreshippingactivities,hehasservedandheldvitalpositions inTechnical&OffshoreServicesDivision-handlingO&MOffshoreContracts,indigenisingIndianoffshoreindustry,shipacquisitions/shipbuildingcontractsforaugmentingIndiantonnage;andinBulkcarrierandTankerDivision-overseeingcharteringand commercial operations of bulk carriers and tankers meeting the ever growing and diverse needs of the Indian Oil Industry. Shri Ubale with his hands on experience, commercial acumen, intimate knowledge of all types ofcharteringinvariousmarketsegmentsincludingBulkCarriers,Tankers,GasCarriers,ContainerShips,Passenger Vessels, Tugs etc. is a highly regarded andwell-known personality in domestic aswellas international chartering market. He has been instrumental in evolving innovative and sustainable strategies for gainfully employing SCI’s vast fleet featuring, in-chartering / out-chartering fixtures,various typesofContract ofAffreightments (COAs)&pool arrangements and alsohasbeen at theforefront of conceptualizing and securing highly remunerative and innovative long termcharters forSCI’sfleet.OwingtohisengagementinSCI’soverseasofficeinUKandSCI’sJointVentureCompanyinTehran,ShriUbalecarrieswithhimselfsubstantialinternationalexposureandexperience,helpingmakeSCI’sChartering&CommercialOperationsanametobereckonedwithinthedomesticaswellasinternationalshipping markets.


Shri Pramod Kumar Panda – Independent DirectorShri Pramod Kumar Panda, a career central banker, specializes in financial regulation, bankingsupervisionandfinancial inclusion.Healsospecializes in strategiccapacitybuilding, particularly infinancialregulationandinclusion.HehaslongandextensiveexperienceinReserveBankofIndia(RBI)'sonsitesupervisionandoffsitemonitoringofcommercialbanks.HehasalsoheadedtheFinancialFraudMonitoringCellofDepartmentofBankingSupervision(DBS),CentralOfficeofRBI.Basishisfinancialsupervisionexperience,Shri.Panda has deep technical understanding of internal controls, riskmanagement including fraud riskmanagementandcorporategovernanceinthefinancialsector.Hehasrichexperience,bothatglobalandnationallevelsindesigninganddeliveringhighqualityandinnovativecapacitybuildingprograms.Shri Panda, is currently associatedwith the Centre for Advanced Financial Research and Learning(CAFRAL)'s, learning activities as Senior Program Director. Also, he was Director on the Board ofCorporationBankasRBl'snominee.HewasalsotheRBINomineeDirectorontheBoardofBankofIndia.HewasalsoanIndependentDirectorontheBoardofHomeCreditIndiaFinancePrivateLimited,asystemicallyimportantNBFCwhichisasubsidiaryofaninternationalnon-bankfinancialinstitution,HomeCreditB.V.headquarteredinNetherlands.HeholdsaMasters'DegreeinScience(MSc)fromLondonSchoolofEconomics&PoliticalScience,UK, aMaster's Degree in Arts (MA) in Political Science fromUtkal University, Odisha, India and aBachelor'sDegreeinLaw(LLB)fromUtkalUniversity.HehascompletedtheSloanExecutiveEducationProgrammeonMIT'sApproachtoDesignThinkingfromMassachusettsInstituteofTechnology,USA.AsGeneralManagerandChiefGeneralManageratRBl'sDBS,hehasledprojectsforimplementationofRiskBasedSupervision,Pillar2ofBaseII,FinancialConglomerateSupervisionandCrossBorderSupervision&SupervisoryCooperation.Hehasbeenamemberof theTaskForce that advised theAccordImplementationGroupofTheBaselCommitteeonBankingSupervision(BCBS)infinalizingtheGoodPracticePrinciplesonSupervisoryColleges.ShriPandahasbeenwith the InternationalMonetaryFundfor threeyearsasResidentAdvisorat itsTechnicalAssistanceCentre(AFRITACSouth),MauritiuswhereheassistedthefinancialregulatorsofsouthernAfricancountriesinstrengtheningtheirfinancialsectorregulationandsupervision.HehasalsobeenthePrincipalofRBl'sCollegeofAgriculturalBanking,PunewhichbuildscapacityamongstbankersinIndiaandSouthAsiaininclusivefinance.

BOARD OF DIRECTORS


S. No NAME TITLE DES LOCATION DIVISION

1 DIPANKARHALDAR Mr. ED MUM BoardSectt.

2 MANDALSHILADITYA Mr. GM PortBlair PortBlair

3 KULKARNIPRADEEPV. Mr. GM MUM P&S

4 KULKARNIANJALIP. Ms. GM MUM F&A

5 MISRASANDEEP Mr. GM MUM B&T

6 MURUGADASJ. Mr. GM MUM IT

7 VINODG. Mr. GM MUM L&PS

8 GANGOPADHYAYPRABIRKUMAR Mr. GM MUM B&T

9 TYAGIBINESHK. Capt. GM MUM P&A

10 SERRAOLAWRENCE Mr. GM MUM F&A

11 BANDEKARS.R. Mr. GM MUM B&T

12 SAINIMANJITSINGH Mr. GM CHEN CHEN

13 DINGLEYVIKRAM Mr. GM MUM B&T

14 N.SUBRAMANYAPRAKASH Mr. GM MUM F&A

15 RAJESHKUMAR Capt. GM MUM B&T

16 PURUSHOTHAMJAYARAMAN Mr. GM MUM L&PS

EXECUTIVE DIRECTOR AND GENERAL MANAGERS AS ON 1.7.2020


DECADE AT GLANCE (STANDALONE)OPERATIONAL STATISTICS

(FiguresinCroresof`)IGAAP IND AS

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2015-16* 2016-17 2016-17** 2017-18 2018-19 2019-20Operating Earnings 3543.4 3820.8 4152.5 4155.2 4153.8 4078.3 4049.9 3446.9 3447.4 3469.5 3872.9 4425.4Interest Income 191.4 183.4 107.3 103.3 145.9 113.2 114.1 106.4 106.4 86.3 90.5 81.2Other Income 285.0 495.9 236.4 280.5 288.0 85.7 50.7 38.8 38.8 61.7 141.8 161.8Total Earnings 4019.8 4500.1 4496.2 4539.0 4587.6 4277.2 4214.7 3592.1 3592.6 3617.5 4105.2 4668.4Operating Expenses 2254.5 3328.4 3273.7 3112.3 2794.2 2339.6 2098.8 2141.3 2178.0 2,223.0 2,533.0 2,558.3Other Expenses 576.7 515.7 668.4 585.6 567.8 636.9 612.4 535.4 490.6 574.9 629.5 727.2FinanceCosts 66.9 387.3 161.8 206.1 179.3 160.6 171.9 172.2 172.2 179.8 359.1 364.1Depreciation 465.1 608.7 760.5 856.4 770.2 580.0 542.3 566.1 566.1 610.3 658.5 671.2Impairment - - - - - 136.4 - - - - - - Extraordinary items - - (299.7) - - - - - - - - - TaxLiability 89.3 88.2 45.8 53.3 75.2 46.5 36.1 41.7 43.5 (224.3) 47.1 45.2Total Expenses 3452.5 4928.3 4610.5 4813.7 4386.7 3899.9 3461.4 3456.6 3450.3 3363.7 4227.2 4366.0ProfitafterTax 567.3 (428.2) (114.3) (274.7) 200.9 377.3 753.3 135.5 142.3 253.8 (122.0) 302.4

* Figures are restated as per Ind AS ** Figures are restated as per Ind AS 8

FINANCIAL HIGHLIGHTS:IGAAP IND AS

31-03-11 31-03-12 31-03-13 31-03-14 31-03-15 31-03-16 31-03-16* 31-03-17 31-03-17** 31-03-18 31-03-19 31-03-20

WHAT THE COMPANY OWNEDFixedAssetsGrossBlock 11841.3 13334.4 16556.8 17486.3 17,297.9 18,154.4 15,851.3 15,945.6 15,945.6 15,986.2 15,594.9 15,218.3

Less:Depreciation(Cum)&Impairment 4472.1 4421.6 5017.0 5551.6 5,853.4 6,551.0 4,024.1 4,534.9 4,534.9 4,638.2 4,475.8 4,565.1NetBlock 7369.2 8912.8 11540.3 11934.7 11,444.5 11,603.4 11,827.2 11,410.7 11,410.7 11,348.0 11,119.1 10,653.1AssetsunderConstruction 1790.4 1833.3 1572.5 710.9 490.9 - - 27.3 27.3 7.8 7.6 2.8WorkingCapital 2431.0 2036.6 1550.1 1837.6 1,341.3 1139.6 1027.0 216.4 226.4 25.8 (441.1) (605.0)Investments 292.7 274.6 117.7 113.5 90.1 65.3 65.7 74.6 74.6 130.9 77.1 77.3Total 11883.3 13057.3 14780.6 14,596.7 13,366.8 12,808.3 12,919.9 11,729.1 11,739.1 11,512.5 10,762.7 10,128.3WHAT THE COMPANY OWEDLongTermFunds:BankLoans 4715.2 6323.0 7707.4 8000.5 6,833.2 5897.9 5844.8 4518.1 4518.1 3,790.6 2,963.7 2,189.4UnsecuredLoans - - 457.0 256.4 - - - - - 520.4 726.3 565.4TotalLongTermFunds 4715.2 6323.0 8164.4 8256.9 6,833.2 5,897.9 5,844.8 4,518.1 4,518.1 4,311.0 3,690.0 2,754.8DeferredTaxLiability - - - - - - 351.6 343.6 388.2 104.0 91.5 75.3NET WORTH OF THE COMPANYShareCapital 465.8 465.8 465.8 465.8 465.8 465.8 465.8 465.8 465.8 465.8 465.8 465.8Reserves&Surplus 6702.3 6268.5 6150.4 5874.0 6,067.8 6444.6 6257.7 6401.6 6367.0 6,631.8 6,515.4 6,832.4Total 7168.1 6734.3 6616.2 6339.8 6,533.6 6,910.4 6,723.5 6,867.4 6,832.8 7,097.6 6,981.2 7,298.2Dividendpaid 256.2 - - - - - - - - - - - Dividend%*** 55.0 - - - - - - - - - - 7.5

* Figures are restated as per Ind AS ** Figures are restated as per Ind AS 8*** The Board of Directors, in its meeting held on May 29, 2020, has recommended a dividend of Rs 0.75/- per equity share of face value of Rs. 10/- each for the financial year ended March 31, 2020 which is subject to the approval of the shareholders at the Annual General Meeting.

(FiguresinCroresof`)


TOTAL INCOME(in ` Crores)

PROFIT BEFORE TAX(in ` Crores)

GRAPHS (STANDALONE)

GROSS BLOCK(in ` Crores)

1.*IGAAP.2.#RestatedIndAS.3.**IndAS.4.Fiscalyear2015representsFinancialyear2015-16,2016-Financialyear2016-17,2017-Financialyear2017-18,2018-Financialyear2018-19and2019-Financialyear2019-20.



46684277

42153592 3593

41053617

2015* 2015# 2016** 2016# 2017** 2018** 2019**

423.79

789.42

177.24 185.76

29.48

347.51

2015* 2015# 2016** 2016# 2017** 2018** 2019**

(74.85)

18154

15851

15946 15946 1598615595

15218

2015* 2015# 2016** 2016# 2017** 2018** 2019**


DEBT EQUITY RATIO

0.85 0.87

0.66 0.660.61

0.53

0.38

2015* 2015# 2016** 2016# 2017** 2018** 2019**

BOOK VALUE PER SHARE AT THE END OF FINANCIAL YEAR(in `)

GRAPHS (STANDALONE)

148.4

144.3

147.4 146.7

152.4

149.9

156.7

2015* 2015# 2016** 2016# 2017** 2018** 2019**




SALIENT STATISTICS 2019-20

Authorised Capital `1000.00Crores

Subscribed & Paid-up Capital `465.80Crores

Depreciation and Amortisation `671.27crores

Gross Earnings `4668.39crores

Gross Investment on Fleet `11900.48crores

No. of Passengers carried (including managed vessels)Mainland-24670

Inter-Island-195282 Foreshore-461037

No. of Employees (including crew) (As on 1st July, 2020)Contract / Retainers

195030

Vessels Owned (As on 1st July, 2020)

• Number 59

• Tonnage 5.311millionDWT2.940millionGT

Vessels on Order (As on 1st July, 2020) NIL

No. of Acquisitions (from 01.04.2019- 01.07.2020) NIL


NOTICE OF MEETING

NOTICEisherebygiventhatthe70thAnnualGeneralMeetingofTheShippingCorporationofIndiaLimited(“theCompany”)will be held on Friday, September 18, 2020 at 03:30 PM IST throughVideoConferencing (“VC”) /OtherAudio-VisualMeans(“OAVM”)totransactthefollowingbusiness:ORDINARY BUSINESS:

1. To receive, consider and adopt the Audited StandaloneandConsolidatedFinancialStatementsof theCompanyfortheFinancialYearendedMarch31,2020togetherwiththeReports of theBoard ofDirectors and theAuditorsthereon.

2. To declare Dividend on Equity Shares for the FinancialYear2019-2020.

3. ToappointaDirectorinplaceofSmt.SangeetaSharma(DIN:07969443)whoretiresbyrotationatthismeetingand being eligible, offers herself for re-appointment.

4. To fix remuneration of Auditors for the Financial Year2020-21.

SPECIAL BUSINESS:

5. Appointment of Shri Pramod Kumar Panda (DIN: 08150489) as a Non-official Part time (Independent) Director of the Company.To consider and if thought fit, to pass with or withoutmodification(s) the following resolution as an OrdinaryResolution:RESOLVED THAT pursuant to the provisions of Sections 149,152,161andotherapplicableprovisions,ifany,oftheCompaniesAct,2013andRulesmadethereunder,Article125of theArticlesofAssociationof theCompanyandother relevant applicable regulations of the Securities and ExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015,asamendedfromtimetotime,ShriPramodKumarPanda(DIN:08150489),whowasappointedasAdditionalDirectoroftheCompanybytheBoardofDirectorswitheffectfromOctober18,2019andwhoholdsthesaidofficepursuanttotheprovisionsofSection161oftheCompaniesAct,2013uptothedateofthisAnnualGeneralMeetingorthelastdateonwhichtheAnnualGeneralMeetingfortheFinancialYear2019-2020shouldhavebeenheld,whicheverisearlierandwhois eligible for appointment under the relevant provisions

oftheCompaniesAct,2013andinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromaMembersignifying his intention to propose him as a candidate for theofficeof the IndependentDirector,beand isherebyappointed as a Non-official Part time (Independent)DirectoroftheCompany,notliabletoretirebyrotation.

6. Appointment of Shri Atul Ubale (DIN:08630613) as a Whole-time Director.

To consider and if thought fit, to pass with or withoutmodification(s) the following resolution as an OrdinaryResolution:

RESOLVED THAT pursuant to the provisions of Sections 149,152,161andotherapplicableprovisions,ifany,oftheCompaniesAct,2013andRulesmade thereunder ,Article125oftheArticlesofAssociationoftheCompanyand relevant applicable regulations of the Securities and ExchangeBoardofIndia(ListingObligationsandDisclosureRequirements) Regulations, 2015, as amended fromtimetotime,ShriAtulUbale(DIN:08630613),whowasappointedasDirectoroftheCompanybytheGovernmentof India on November 11, 2019 and as an AdditionalDirectorof theCompanybytheBoardofDirectorswitheffectfromDecember05,2019i.eonhisobtainingDINandwhoholdsthesaidofficepursuanttotheprovisionsofSection161oftheCompaniesAct,2013uptothedateofthisAnnualGeneralMeetingorthelastdateonwhichtheAnnualGeneralMeetingfortheFinancialYear2019-2020shouldhavebeenheld,whicheverisearlierandwhois eligible for appointment under the relevant provisions oftheCompaniesAct,2013andinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromaMembersignifying his intention to propose him as a candidate for theofficeoftheDirector,beandisherebyappointedasDirectoroftheCompany,liabletoretirebyrotation.

By Order of the Board of Directors

for The Shipping Corporation of India Ltd. Dipankar Haldar

Executive Director (Legal Affairs) & Company Secretary

Registered Office: ShippingHouse,245,MadameCamaRoad,Mumbai–400021.Dated:07.08.2020


NOTICE OF MEETING

NOTES1. In viewof the continuing restrictions on themovement

ofpeopleatseveralplaces,duetooutbreakofCOVID-19pandemic, theMinistry of Corporate Affairs(“MCA”)hasvideitscircularNo.20/2020datedMay05,2020readwithcircularsNo.14/2020datedApril08,2020andCircularNo.17/2020datedApril13,2020(collectivelyreferredtoas“MCACirculars”)permittedtheholdingoftheAnnualGeneralMeeting(“AGM”)throughVC/OAVM,withoutthephysical presence of the Members at a common venue. IncompliancewiththeprovisionsoftheCompaniesAct,2013 (“Act”), SEBI (Listing Obligations and DisclosureRequirements) Regulations, 2015 (“SEBI LODR,2015”)andMCACirculars, the AGMof the Company is beingheldthroughVC/OAVM.ThedeemedvenuefortheAGMwillbetheplacefromwheretheChairpersonoftheBoardconducts the Meeting.

2. Statementpursuanttosection102(1)oftheCompaniesAct,2013isannexedandformspartofthisnotice.

3. The relevantdetails, pursuant toRegulations26(4) and36(3)oftheSEBI(LODR),2015andSecretarialStandardsontheGeneralMeetingsissuedbytheInstituteofCompanySecretariesofIndia(ICSI)inrespectofDirectorsseekingre-appointmentatthisAGMisannexed.

4. Since this AGM is being held pursuant to the MCACirculars throughVC/OAVM,physical attendanceof themembers has been dispensed with. Accordingly, the facility for appointment of proxies by the Members will notbeavailable for theAGMandhence theproxy formandAttendanceSliparenotannexedtothisNotice.

5. A person who is not a member as on cut-off date of remotee-voting i.eFriday,September11,2020,shouldtreat the notice for information purpose only.

6. MembersattendingtheAGMthroughVC/OAVMshallbecountedforthepurposeofreckoningthequorumunderSection103oftheAct

7. President of India/ Institutional/ Corporate Shareholders(i.eotherthanindividuals/HUF/NRI,etc)arerequiredtosendascannedcopy(PDF/JPGformat)of itsdecision/Board or governing bodyResolution/ Authorisation etc,authorizingitsrepresentativetoattendtheAGMthroughVC/OAVM on its behalf and to vote through remotee-voting.ThesaidResolution/Authorisationshallbesentto the Company by email through its registered emailaddress at [email protected] with a copy marked to [email protected]:00pm(IST).

8. TheRegisterofMembersandtheShareTransferBooksoftheCompanywillremainclosedfromtoFriday,September11,2020toFriday,September18,2020(boththedaysinclusive).

9. The Members, whose names appear in the Registerof Members / list of Beneficial Owners as onThursday, September 10, 2020 i.e. the date prior tothe commencement of book closure, will be paid the Dividendforthefinancialyearended31stMarch,2020,asrecommendedbytheBoard,ifapprovedattheAGM.

10. TheDividend,onceapprovedbytheshareholdersintheensuingAGMwillbepaidwithin30daysfromthedateofAGMelectronicallythroughvariousonlinetransfermodesto those shareholders who have updated bank account details.Forshareholderswhohavenotupdatedtheirbankdetails,dividendwarrants/demanddrafts/chequeswillbe sent out to their registered address once the postal facility is available. To avoid delay in receiving dividend, shareholders are requested toupdate theirBankdetailsandKYCwithourRTA

11. AsperRegulation40ofSEBILODR,2015,asamended,securities of listed companies can be transferred only in dematerialized form with effect from, April 1, 2019,except in case of request received for transmission ortransposition of securities. In view of this and to eliminate all risks associated with physical shares and for ease of portfolio management, members holding shares in physicalformarerequestedtoconsiderconvertingtheirholdings to dematerialized form.Members can contacttheRTA,M/sBigshareServicesPvtLtdforassistanceinthisregardonTel:022-62638200.

12. To support the ‘Green Initiative’, Members who havenot yet registered their email addresses are requestedto register the samewith their DPs in case the sharesare held by them in electronic form and with RTA in case the shares are held by them in physical form. The detail process regarding the registration is mentioned under SerialNo.21ofthisNotice.

13. Members are requested to intimate changes, if any,pertaining to their name, postal address, email address, telephone/mobilenumbers,PermanentAccountNumber(PAN),mandates,nominations,powerofattorney,bankdetails such as, name of the bank and branch details, bank account number, MICR code, IFSC code, or anyotherKYCdetails, etc., to theirDPs in case the sharesare held by them in electronic form and to the RTA of the Companyincasethesharesareheldinthephysicalform.


Members are requested to notify any change in theiraddress to the Registrars and Transfer Agents (“RTA”)of the Company at the following address - BigshareServicesPvtLtd., 1st Floor,BharatTinWorksBuilding,Opp.VasantOasis,MakwanaRoad,Marol,AndheriEast,Mumbai-400059,Maharashtra, Tel:022-62638200, Fax:022-62638299, or at Email: [email protected]

14. Members are requested to note that, dividends if notencashed for a consecutive period of 7 years from the date oftransfertoUnpaidDividendAccountoftheCompany,are liable to be transferred to the Investor Education and ProtectionFund(“IEPF”).Thesharesinrespectofsuchunclaimed dividends are also liable to be transferred to thedemataccountoftheIEPFAuthority.Inviewofthis,MembersarerequestedtoclaimtheirdividendsfromtheCompany,withinthestipulatedtimeline.

15. In compliance with the aforesaid MCA Circulars andSEBI Circular datedMay 12, 2020, Notice of the AGMalong with the Annual Report 2019-20 is being sentonly through electronic mode to those Members holding shares of theCompany as on Friday,August 07, 2020and whose email addresses are registered. Members may note that the Notice and Annual Report 2019-

20 will also be available on the Company’s website www.shipindia.com, websites of the Stock Exchanges i.e. BSE Limited and National Stock Exchange of IndiaLimited at www.bseindia.com and www.nseindia.com respectively, and on the website of NSDL https://www.evoting.nsdl.com. Any person acquiringsharesafterFriday,August07,2020andholdingsharesasonthecloseofthebusinesshoursofFriday,September11, 2020 may visit SCI’s website www.shipindia.com under‘FinancialResults Annual Reports’ section.

16. Taxability and Other Dividend Related Informationa) AspertheIncomeTaxAct,1961(“ITAct”),asamended

by the FinanceAct,2020,dividendspaidordistributedbyaCompanyafterApril1,2020shallbetaxableinthehandsoftheshareholders.TheCompanyshallthereforeberequiredtodeducttaxatsourceattheapplicableratesat the time of making the payment of the Dividend, ifdeclaredattheAGM.

b) The TDS rate may vary depending on the residentialstatus of the shareholder and the documents submitted by the shareholders and accepted by the Company inaccordancewith theprovisionsof theAct.TheTDSforvarious categories of shareholders along with requireddocumentsaresummarizedbelow:

Table 1: Resident Shareholders

Particulars & Category of shareholders Rate of Tax Deduction

Exemption documents to be given

Resident IndividualsIftotalDividendincometoaresidentindividualshareholderinFY2020-21>Rs.5,000

- 7.5% in case wherePANis

provided/available-20%,inother

caseswherePANisnotprovided/not

available

UpdatethePANifnotalreadydonewithdepositaries,in case of shares held in demat mode and with the Company's Registrar and Transfer Agents –BigshareServicesPvtLtd(“RTA”),incaseofsharesheld in physical mode.

ShareholdersprovidingdulysignedForm15G(applicabletoanypersonotherthanaCompanyoraFirm)/15H(applicabletoanIndividualabovetheageof60years)providedthatallthe prescribed eligibility conditions are met.

NIL Form 15G/15H duly signed – The formsare available on the website of RTA at https://www.bigshareonline.com/Resources.aspx

IftotalDividendincometoaresidentindividualshareholderinFY2020-21<Rs.5,000

NIL -

Resident - Other than IndividualsIndianCommercialBanks/IndianFinancialInstitutions 7.5% -Insurance Companies: LIC & Other Insurance Companiessuch as GIC/United India Insurance Co/Oriental InsuranceCo/NewIndiaAssuranceCo,etcasprovidedunderSecondProvisotosection194ofITAct

NIL AdeclarationthatithasafullbeneficialinterestwithrespecttothesharesownedbyitalongwithPAN.

NOTICE OF MEETING


NOTICE OF MEETING

Particulars & Category of shareholders Rate of Tax Deduction

Exemption documents to be given

Govtof India,CorporationestablishedbyorunderaCentralAct which is, under any law for the time being in force, exempt fromincome-taxonitsincome(Section196)

NIL Self-declarationspecifyingthespecificCentralActunder which such corporation is established and that their income is exempt under the provisions ofIncomeTaxAct,1961alongwithaself-attestedcopyofthePANcardandregistrationcertificate.

MutualFunds NIL Self-declarationthattheyarespecifiedandcoveredundersection10(23D)oftheIncomeTaxAct,1961along with a self-attested copy of PAN card andregistrationcertificate.

7.5% In case of mutual funds not covered under section 10(23D)oftheIncomeTaxAct,1961

AlternativeInvestmentFund NIL Self-declaration that its income is exempt under Section10(23FBA)oftheIncomeTaxAct,1961andtheyaregovernedbySEBIregulationsasCategoryIorCategoryIIAIFalongwithaself-attestedcopyofthePANcardandregistrationcertificate.

7.5% IncaseAIFotherthanthoseregisteredwithSEBIasperSection115UBoftheITAct.

Orderundersection197oftheITAct Rate provided in the order

Lower/NILwithholdingtaxcertificateobtainedfromIncome Tax authorities.

OtherresidentshareholderwithoutPAN/InvalidPAN 20% -

Please Note that:a) Recording of the valid Permanent Account Number (PAN) for the registered Folio/DP id-Client Id is mandatory. In

absence of valid PAN, tax will be deducted at a higher rate of 20% as per Section 206AA of the IT Act.b) Shareholders holding shares under multiple accounts under different status / category and single PAN, may note that,

higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts

Table 2: Non-resident Shareholders TaxisrequiredtobewithheldinaccordancewiththeprovisionsofSection195oftheIncomeTaxAct,1961atapplicableratesinforce.Asperthesaidprovisions,thetaxshallbewithheld@20%plusapplicablesurchargeandcessontheamountofdividendpayable.However,asperSection90oftheIncomeTaxAct,1961,anon-residentpayeehastheoptiontobegovernedbytheprovisionsoftheDoubleTaxAvoidanceAgreement(DTAA)betweenIndiaandthecountryoftaxresidenceoftheshareholder,iftheyaremorebeneficialtotheshareholder.Forthispurpose,i.e.toavailtheDTAAbenefits,thenon-residentshareholderwillhave to provide documents provided in the following table:


Category of shareholder Tax Deduction Rate

Exemption applicability/ Documentation requirement

Any non-resident shareholder (This includes Foreign Companies, BodiesCorporate,NRI,ForeignNationalsandother foreign entities)

20%(plusapplicable

surcharge and cess) or Tax Treaty rate

whichever is lower

Non-residentshareholdersmayoptfortaxrateunderDoubleTaxationAvoidanceAgreement("TaxTreaty")asperSection90oftheIncometaxAct,1961.TheTax Treaty rate shall be applied for tax deduction at source on submission of following documents to the RTA;• CopyofthePANCard,ifany,allottedbytheIndianauthorities.• Self-attested copy of Tax Residency Certificate (TRC) valid as on theAGMdateobtained from the tax authoritiesof thecountryofwhich theshareholder is resident.

• Self-declaration in Form 10F available on RTA website at https://www.bigshareonline.com//docs/Form_10F.pdf

• Self-declaration by the shareholder of having no permanent establishment in India in accordance with the applicable tax treaty

• Self-declarationofbeneficialownershipbythenon-residentshareholder• Any other documents as prescribed under the IT Act for lower withholding

of taxes if applicable, duly attested by memberTDSshallberecoveredat20%(plusapplicablesurchargeandcess)ifanyofthe above-mentioned documents are not provided. However, theCompany in its solediscretion reserves the right toapply thebeneficial DTAA rates at the time of tax deduction/withholding on dividendamounts and to call for any further information. Application of DTAA rateshalldependuponthecompletenessofthedocumentssubmittedbytheNon-ResidentshareholderandreviewtothesatisfactionoftheCompany.

ForeignInstitutionalInvestors,ForeignPortfolioInvestors(FII,FPI)

20%(plusapplicable

surcharge and cess)

None(TreatybenefitnotavailabletoFII/FPI).TDSrateshallnotbereducedonaccountoftheapplicationoftheLowerDTAArateorlowertaxdeductionorder,if any

SubmittingOrderundersection197of the IT Act

Rate provided in the Order

Lower/NILwithholdingtaxcertificateobtainedfromIncomeTaxauthorities.

Note: The Shareholders holding shares under multiple accounts under different status / category and single PAN, may note that, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts.PROCEDURE FOR SUBMISSION OF DOCUMENTS:Form 15G/15H/10F are available on the website of our RTA, Bigshare Services Private Limited. The same can be downloaded from Bigshare Services Private Limited’s website https://www.bigshareonline.com/Resources.aspx The above mentioned documents (dulycompletedandsigned)are required tobeuploadedathttps://www.bigshareonline.com/dividendTDS.aspx. TheCompanyhassharedlinksofthisformsaswellaslinkforuploadingthedocuments/formsviaSMSwiththoseShareholdersholdingsharesoftheCompanyasonFriday,August07,2020andhavingtheirMobileNumberregisteredwiththeCompany.Shareholderscanalsosendtheirdulysignedtaxdeclarationsorcommunications/queriestocompany’[email protected],inordertoenableustodeterminetheappropriateTDS/withholdingtaxrateapplicable,werequestyoutoprovide/uploadthesedetailsanddocumentsasmentionedabovebeforeFriday,September04,2020.Incompleteand/orunsignedformsanddeclarationswillnotbeconsideredbytheCompany.Nocommunication/documentsonthetaxdetermination/deductionshallbeconsideredpostFriday,September04,2020.Further, shareholders who have not registered their email address are requested to register the same with our RTA.Shareholders are further requested to complete necessary formalitieswith regard to their Bank accounts attached to theirDemataccountforenablingtheCompanytomaketimelycreditofdividendinrespectivebankaccountespeciallyinviewofCOVID19pandemic.Shareholdercanupdatetheiremailids/Bankdetails/MobileNumberonlineatcompany’sRTAwebsiteat https://www.bigshareonline.com/InvestorRegistration.aspx The detailed steps regarding the registration are mentioned under serialnumber21.

NOTICE OF MEETING


It may be further noted that in case the tax on said dividend is deducted at a higher rate in absence of receipt of the aforementioned details/documentsfromyou,therewouldstillbeanoptionavailablewithyoutofilethereturnofincomeandclaimanappropriaterefund,ifeligible.NoclaimshalllieagainsttheCompanyforsuchtaxesdeducted.17.SincetheAGMwillbeheldthroughVC/OAVM,theRouteMapisnotannexedinthisNotice.18.TheRegistersoftheDirectorsandKeyManagerialPersonnelandtheirshareholdingunderSection170oftheCompaniesAct,2013andotherstatutorydocuments,willonlybemadeavailableforinspectiontothemembersontheirrequesttotheCompanyatcs@sci.co.inmentioningtheirname,foliono./clientIDandDPID,andthedocumentstheywishtoinspect,withaself-attestedcopyoftheirPANcardattachedtotheemail.

19.Instructionsfore-votingandjoiningtheAGMareasfollows:20. VOTING THROUGH ELECTRONIC MEANSI. Incompliancewith theprovisionsofSection108of theAct, readwithRule20of theCompanies(ManagementandAdministration)Rules,2014,asamended from time to time,andRegulation44of theSEBIListingRegulations, theMembersareprovidedwiththefacilitytocasttheirvoteelectronically,throughthee-votingservicesprovidedbyNSDL,onalltheresolutionssetforthinthisNotice.Theinstructionsfore-votingaregivenhereinbelow.

II. The remote e-voting period commences on Tuesday, September 15, 2020 (9:00 a.m. IST) and ends on Thursday,September17,2020(5:00p.m.IST).Duringthisperiod,Membersholdingsharesasoncut-offdatei.eFriday,September11,2020eitherinphysicalformorindematerializedformmaycasttheirvoteelectronically.Thee-votingmoduleshallbedisabledbyNSDLforvotingthereafter.ThoseMembers,whowillbepresentintheAGMthroughVC/OAVMfacilityandhave not cast their vote on the Resolutions through remote e-voting and are otherwise not barred from doing so, shall be eligibletovotethroughe-votingsystemduringtheAGM.

III. TheBoardofDirectorshasappointedShriUpendraShukla(MembershipNo.FCS2727),PracticingCompanySecretaryastheScrutinizertoscrutinizethevotingduringtheAGMandremotee-votingprocessinafairandtransparentmanner.

IV. TheMemberswhohavecasttheirvotebyremotee-votingpriortotheAGMmayalsoattend/participateintheAGMthroughVC/OAVMbutshallnotbeentitledtocasttheirvoteagain.

V. ThevotingrightsofMembersshallbeinproportiontotheirsharesinthepaid-upequitysharecapitaloftheCompanyason the cut-off date.

VI.Anyperson,whoacquiressharesoftheCompanyandbecomesaMemberoftheCompanyaftersendingoftheNoticeandholdingsharesasonthecloseofthebusinesshoursofFriday,September11,2020,mayobtaintheloginIDandpasswordbysendingarequestatevoting@nsdl.co.in.However,ifhe/shearealreadyregisteredwithNSDLforremotee-votingthenhe/shecanusehis/herexistingUserIDandpasswordforcastingthevote.

VII.Thedetailsoftheprocessandmannerforremotee-votingareexplainedhereinbelow:How to vote electronically using NSDL e-Voting systemThewaytovoteelectronicallyonNSDLe-Votingsystemconsistsof“TwoSteps”whicharementionedbelow:Step 1: Log-in to NSDL e-Voting system at https://www.evoting.nsdl.com/Step 2: Cast your vote electronically on NSDL e-Voting system.Details on Step 1 is mentioned below:

NOTICE OF MEETING


How to Log-in to NSDL e-Voting websiteI. Visitthee-VotingwebsiteofNSDL.OpenwebbrowserbytypingthefollowingURL:https://www.evoting.nsdl.com/eitheronaPersonalComputeroronamobile.

II. Oncethehomepageofe-Votingsystemislaunched,clickontheicon“Login”whichisavailableunder‘Shareholders’section.III. Anewscreenwillopen.YouwillhavetoenteryourUserID,yourPasswordandaVerificationCodeasshownonthescreen. Alternatively,ifyouareregisteredforNSDLeservicesi.e.IDEAS,youcanlog-inathttps://eservices.nsdl.com/withyourexistingIDEASlogin.Onceyoulog-intoNSDLeservicesafterusingyourlog-incredentials,clickone-VotingandyoucanproceedtoStep2i.e.Castyour vote electronically.

IV. YourUserIDdetailsaregivenbelow:

Manner of holding shares i.e. Demat (NSDL or CDSL) or Physical

Your User ID is:

a)ForMemberswhoholdsharesindemataccountwithNSDL. 8CharacterDPIDfollowedby8DigitClientIDForexample,ifyourDPIDisIN300***andClientIDis12******thenyouruserIDisIN300***12******.

b)ForMemberswhoholdsharesindemataccountwithCDSL. 16DigitBeneficiaryIDForexample,ifyourBeneficiaryIDis12**************thenyouruserIDis12**************

c)ForMembersholdingsharesinPhysicalForm. EVEN Number followed by Folio Number registered with thecompanyForexampleiffolionumberis001***andEVENis101456thenuserIDis101456001***

V. Yourpassworddetailsaregivenbelow:a) Ifyouarealreadyregisteredfore-Voting,thenyoucanuseyourexistingpasswordtologinandcastyourvote.b) IfyouareusingNSDLe-Votingsystemforthefirsttime,youwillneedtoretrievethe‘initialpassword’whichwascommunicatedto

you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ and the system will force you to change your password.

c) How to retrieve your ‘initial password’(i) IfyouremailIDisregisteredinyourdemataccountorwiththecompany,your‘initialpassword’iscommunicatedtoyouonyouremailID.TracetheemailsenttoyoufromNSDLfromyourmailbox.Opentheemailandopentheattachmenti.e.a.pdffile.Openthe.pdffile.Thepasswordtoopenthe.pdffileisyour8digitclientIDforNSDLaccount,last8digitsofclientIDforCDSLaccountorfolionumberforsharesheldinphysicalform.The.pdffilecontainsyour‘UserID’andyour‘initialpassword’.

(ii) IfyouremailIDisnotregistered,pleasefollowstepsmentionedbelowinprocessforthoseshareholderswhoseemailidarenotregistered.

VI. Ifyouareunabletoretrieveorhavenotreceivedthe“Initialpassword”orhaveforgottenyourpassword:a) Clickon“ForgotUserDetails/Password?”(IfyouareholdingsharesinyourdemataccountwithNSDLorCDSL)optionavailableon

www.evoting.nsdl.com.b) "PhysicalUserResetPassword?”(Ifyouareholdingsharesinphysicalmode)optionavailableonwww.evoting.nsdl.com.c) Ifyouarestillunabletogetthepasswordbyaforesaidtwooptions,youcansendarequestatevoting@nsdl.co.inmentioningyourdemataccountnumber/folionumber,yourPAN,yournameandyourregisteredaddress.

d) MemberscanalsousetheOTP(OneTimePassword)basedloginforcastingthevotesonthee-VotingsystemofNSDLVII. Afterenteringyourpassword,tickonAgreeto“TermsandConditions”byselectingonthecheckbox.VIII. Now,youwillhavetoclickon“Login”button.IX. Afteryouclickonthe“Login”button,Homepageofe-Votingwillopen.

Details on Step 2 are given below:How to cast your vote electronically on NSDL e-Voting system?I. AftersuccessfulloginatStep1,youwillbeabletoseetheHomepageofe-Voting.Clickone-Voting.Then,clickonActiveVotingCycles.II. AfterclickonActiveVotingCycles,youwillbeabletoseeallthecompanies“EVEN”inwhichyouareholdingsharesandwhosevoting

cycle is in active status.III. Select“EVEN”ofcompanywhichis113581.IV. Nowyouarereadyfore-VotingastheVotingpageopens.

NOTICE OF MEETING


V. Castyourvotebyselectingappropriateoptionsi.e.assentordissent,verify/modifythenumberofsharesforwhichyouwishtocastyourvoteandclickon“Submit”andalso“Confirm”whenprompted.

VI. Uponconfirmation,themessage“Votecastsuccessfully”willbedisplayed.VII. Youcanalsotaketheprintoutofthevotescastbyyoubyclickingontheprintoptionontheconfirmationpage.VIII.Onceyouconfirmyourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.General Guidelines for shareholdersI. President of India/Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/

JPGFormat)of therelevantDecision/BoardResolution/Authority letteretc.withattestedspecimensignatureof thedulyauthorizedsignatory(ies)whoareauthorizedtovote,[email protected]@nsdl.co.in.

II. Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.Logintothee-votingwebsitewillbedisableduponfiveunsuccessfulattemptstokeyinthecorrectpassword.Insuchanevent,youwillneedtogothroughthe“ForgotUserDetails/Password?”or“PhysicalUserResetPassword?”optionavailableonwww.evoting.nsdl.com to reset the password.

III. Incaseofanyqueries,withrespecttoremotee-votingore-votingattheAGM,youmayrefertheFrequentlyAskedQuestions(FAQs)forShareholders and e-voting user manual for Shareholders available at the download section of www.evoting.nsdl.com or call on toll free no.:[email protected]

IV. Further,pleasefindbelowdetailsofNSDLofficialsforqueries:Mr.AmitVishal,SeniorManager–NSDL,[email protected],Manager,[email protected]

21. Manner of updating Mobile Numbers, Bank Account and Email addresses.Byfollowinganyofthebelowmentionedprocess,theshareholdersarerequestedtoupdatetheirMobileNumbers,EmailaddressesandBankAccountDetailsinordertoreceive:• E-Notice,AnnualReportandallotherelectroniccommunicationrelatingtotheconductoftheAGM.• DividenddirectlyintheBankAccounts.

I. ThoseshareholdersholdingsharesintheDematFormcanupdatetheirMobileNumber,EmailaddressesandBankAccountdetailswiththeirrelevantDepositoriesthroughtheirDepositoryParticipants.ThoseshareholdersholdingsharesinthePhysicalForm,arerequestedtofurnishthedetailsofmobilenumber,emailaddressesandbankaccountdetailstotheCompany'sRegistrarandShareTransferAgent(RTA)atfollowingaddress-BigshareServicesPvtLtd.,1stFloor,BharatTinWorksBuilding,Opp.VasantOasis,MakwanaRoad,Marol,Andheri East,Mumbai-400059,Maharashtra, Tel:022-62638200, Fax:022-62638299or at Email: [email protected],folionumber,scannedcopyofthesharecertificate(frontandback)andselfattestedcopyofPANCard.FollowingadditionaldetailstobeprovidedforupdatingBankAccountforreceivingDividend.(i) NameandbranchoftheBank(ii) TheBankAccounttype(iii) Bankaccountnumber(iv) 9DigitMICRNumber(v) 11DigitIFSCCode(vi) Scannedcopyofthecancelledchequebearingthenameofthefirstshareholder.

II. Company has also provided the SMS facility, underwhich those shareholderswho have registered theirmobile numberswith theCompanyandholdingsharesof theCompanyasonFriday,August07,2020will receiveSMSon their registeredmobilenumbers.TheshareholderswillbedirectlyroutedtothewindowofupdationofEmailaddressesandBankAccountdetailsbyaccessingtheURLprovided in the SMS .

III. ThoseshareholderswhohavenotreceivedSMSfromtheRTAbutholdingthesharesoftheCompanyonFriday,September11,2020,canaccess thisURLatRTA’websiteathttps://www.bigshareonline.com/InvestorRegistration.aspx forupdating theirMobileNumber,EmailaddressesandBankAccountDetails.

IV. TheshareholderscanalsosendthedetailsofMobileNumber,EmailaddressesandBankAccountalongwithotherdetailsanddocumentsmentioned at Sr no.(I) above directly to the RTA at [email protected]

22. THE INSTRUCTIONS FOR MEMBERS FOR e-VOTING ON THE DAY OF THE AGM ARE AS UNDER:-I. Theprocedurefore-VotingonthedayoftheAGMissameastheinstructionsmentionedaboveforremotee-voting.II. OnlythoseMembers/shareholders,whowillbepresentintheAGMthroughVC/OAVMfacilityandhavenotcastedtheirvoteontheResolutionsthroughremotee-Votingandareotherwisenotbarredfromdoingso,shallbeeligibletovotethroughe-VotingsystemintheAGM.

NOTICE OF MEETING


III. MemberswhohavevotedthroughRemotee-VotingwillbeeligibletoattendtheAGM.However,theywillnotbeeligibletovoteattheAGM.IV. Thedetailsofthepersonswhomaybecontactedforanygrievancesconnectedwiththefacilityfore-VotingonthedayoftheAGMshall

be the same persons mentioned for remote e-voting.23. INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE AGM THROUGH VC/OAVM ARE AS UNDER:I. MemberwillbeprovidedwithafacilitytoattendtheAGMthroughVC/OAVMthroughtheNSDLe-Votingsystem.Membersmayaccessthesameathttps://www.evoting.nsdl.comundershareholders/membersloginbyusingtheremotee-votingcredentials.ThelinkforVC/OAVMwillbeavailableinshareholder/membersloginwheretheEVENofCompanywillbedisplayed.PleasenotethatthememberswhodonothavetheUserIDandPasswordfore-VotingorhaveforgottentheUserIDandPasswordmayretrievethesamebyfollowingtheremotee-VotinginstructionsmentionedintheNoticetoavoidlastminuterush.FurthermemberscanalsousetheOTPbasedloginforloggingintothee-VotingsystemofNSDL.

II. Facility of joining theAGM throughVC /OAVMshall open2hoursbefore the timescheduled for theAGMandshall be kept openthroughouttheproceedingsoftheAGM.

III. MemberswhoneedassistancebeforeorduringtheAGM,cancontactNSDLoncallontollfreeno.:[email protected],pleasefindbelowdetailsofNSDLofficialsforqueries:Mr.AmitVishal,SeniorManager–NSDL,[email protected],Manager,[email protected].

IV. MemberswhowouldliketoexpresstheirviewsoraskquestionsduringtheAGMmayregisterthemselvesasaspeakerbysendingtheirrequestfromtheirregisteredemailaddressmentioningtheirname,DPIDandClientID/folionumber,PAN,mobilenumber,[email protected] fromFriday,September04,2020(9:00a.m. IST) toFriday,September11,2020(5:00p.m. IST).ThoseMemberswhohaveregisteredthemselvesasaspeakerwillonlybeallowedtoexpresstheirviews/askquestionsduringtheAGM.TheCompanyreserves the right to restrict thenumberofspeakersdependingon theavailabilityof time for theAGM.TheCompanymayrespondsuitablytothoseshareholderswhohadsentrequesttotheCompanytoexpresstheirviews/questionsbutduetopaucityoftimedidnotgetopportunitytoaskquestionsduringAGM.

V. MembersareencouragedtojointheMeetingthroughLaptopsforbetterexperience.VI. FurtherMemberswillberequiredtoallowCameraanduseInternetwithagoodspeedtoavoidanydisturbanceduringthemeeting.VII.InstitutionalMembersareencouragedtoattendandvoteattheAGMthroughVC/OAVM.IncaseanyInstitutionalMembers,facingissuesforparticipatinginAGMcancontactNSDLoncallontollfreeno.:[email protected],pleasefindbelowdetailsofNSDLofficialsforqueries:Mr.AmitVishal,SeniorManager–NSDL,[email protected],Manager,[email protected]

VIII.PleasenotethatParticipantsConnectingfromMobileDevicesorTabletsorthroughLaptopconnectingviaMobileHotspotmayexperienceAudio/VideolossduetoFluctuationintheirrespectivenetwork.ItisthereforerecommendedtouseStableWi-FiorLANConnectiontomitigate any kind of aforesaid glitches.

24. Other Instructions I. TheScrutinizershall,immediatelyaftertheconclusionofvotingattheAGM,firstcountthevotescastduringtheAGM,thereafterunblockthevotescastthroughremotee-votingandmake,notlaterthan48hoursofconclusionoftheAGM,aconsolidatedScrutinizer’sReportofthetotalvotescastinfavouroragainst,ifany,andsubmitthereporttotheChairpersonorapersonauthorisedbyherinwriting,whoshall countersign the same.

II. TheresultdeclaredalongwiththeScrutinizer’sReportshallbesubmittedtoNationalStockExchangeofIndiaLimitedandBSELimited,wherethesharesoftheCompanyarelistedandshallalsobeplacedontheCompany’swebsitewww.shipindia.comandonthewebsiteofNSDLhttps://www.evoting.nsdl.comimmediately.

Dipankar Haldar Executive Director (Legal Affairs) &

Company SecretaryRegistered Office:ShippingHouse,245,MadameCamaRoad,Mumbai–400021Date:07.08.2020

NOTICE OF MEETING


ANNEXURE TO THE NOTICE EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013Item No. 5 of the NoticeThefollowingexplanatorystatementsetsoutallthematerialfactsrelatingtospecialbusinessmentionedinItemNo.5oftheaccompanyingnoticedated07.08.2020conveningthe70thAnnualGeneralMeetingoftheCompany.TheBoardofDirectorsoftheCompanyappointedShriPramodKumarPandaasanAdditionalDirector(Independent)oftheCompanywitheffectfrom18.10.2019,pursuanttotheprovisionsofSection161(1)oftheActandArticle125oftheArticlesofAssociationoftheCompany.IntermsoftheprovisionsofSection161(1)oftheAct,ShriPramodKumarPandawouldholdofficeuptothedateoftheensuingAnnualGeneralMeeting.TheCompanyhasreceivedanoticeinwritingfromaMemberunderSection160oftheAct,proposinghiscandidaturefortheofficeofDirectoroftheCompany.TheCompanyhasreceivedfromShriPramodKumarPanda(i)intimationinFormDIR-8intermsofCompanies(Appointment&QualificationofDirectors)Rules,2014totheeffectthatheisnotdisqualifiedunderSub-Section(2)ofSec.164oftheCompaniesAct,2013;and(ii)adeclarationtotheeffectthathemeetsthecriteriaofindependenceasprovidedinsub-Section6ofSec.149oftheCompaniesAct,2013andRegulation16oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.IntheopinionoftheBoardofDirectors,ShriPramodKumarPanda,proposedtobeappointedasanIndependentDirector,fulfilstheconditionsspecifiedintheActandtheRulesmadethereunderandheisindependentofthemanagement.Saveandexcepttheabove,noneoftheotherDirectors/KeyManagerialPersonneloftheCompany/theirrelativesare,inanyway,concernedorinterested,financiallyorotherwise,inthisresolution.ThisstatementmayalsoberegardedasanappropriatedisclosureundertheListingRegulations.TheBoardrecommendsthisOrdinaryResolutionforyourapproval.Item no. 6 of the NoticeThefollowingexplanatorystatementsetsoutallthematerialfactsrelatingtospecialbusinessmentionedinItemNo.6oftheaccompanyingnoticedated07.08.2020conveningthe70thAnnualGeneralMeetingoftheCompany.Government of India appointedShriAtulUbale asdirector onNovember11, 2019andwasappointed as anAdditionalDirector of theCompanybytheBoardofDirectorswitheffectfromDecember05,2019i.eonhisobtainingDIN,pursuanttotheprovisionsofSection161(1)oftheActandArticle125oftheArticlesofAssociationoftheCompany.IntermsoftheprovisionsofSection161(1)oftheAct,ShriAtulUbalewouldholdofficeuptothedateoftheensuingAnnualGeneralMeeting.TheCompanyhasreceivedanoticeinwritingfromaMemberalongwiththedepositofrequisiteamountunderSection160oftheActproposinghiscandidaturefortheofficeofDirectoroftheCompany.AbriefprofileofShriAtulUbaleisgivenunderthesection‘BoardofDirectors’oftheAnnualReport.Saveandexceptof theabove,noneof theotherDirectors /KeyManagerialPersonnelof theCompany/ their relativesare, inanyway,concernedorinterested,financiallyorotherwise,inthisresolution.ThisstatementmayalsoberegardedasanappropriatedisclosureundertheListingRegulations.TheBoardrecommendsthisOrdinaryResolutionforyourapproval.


ANNEXURE TO NOTICEDetailsoftheDirectorsseekingre-appointment/appointmentattheforthcomingAnnualGeneralMeeting

Name of Director Smt. Sangeeta Sharma(DIN:07969443)

Shri Pramod Kumar Panda(DIN:08150489)

Shri Atul Ubale (DIN:08630613)

Date of Birth 06-11-1960 03-04-1957 14-06-1965Date of Appointment 29-12-2017 18-10-2019 05-12-2019Qualifications • Masters in Management

Studies fromWorldMaritimeUniversity,Malmo,Sweden.

• Masters in PersonnelManagement

• Bcom

• Masters' Degree in Science(MSc) from London School ofEconomics & Political Science,UK

• Master's Degree Arts (MA) inPoliticalScience

• Bachelor'sDegreeinLaw(LLB)

• Bachelor of Commerce,MumbaiUniversity

• Master of ManagementStudies, Mumbai University.

Expertise in Specific Functional areas

Over 34 years of experience inall facets of shipping services especially in liner commercial operations, project management and personnel management, strategic planning and contract negotiations.

• Vast and Extensive experienceinReserveBankof India (RBI)'sonsite supervision and off site monitoring of commercial banks. He also specializes in financialregulation, banking supervision and capacity building financialinclusion. Deep technicalknowledge and understanding of internal controls, risk management including fraud risk management and corporate governance. He has rich experience, both at global and national levels in designing and delivering high quality andinnovative capacity building programs. He is associated with the Centre for AdvancedFinancialResearchandLearning(CAFRAL)'s

Over 30 years of vastexperience in various facets of core shipping activities, O&M Off Shore Contracts,indigenising Indian offshore industry, Ship acquisition/shipbuilding contracts for augmenting Indian tonnage in Technical & OffshoreServices. Chartering &Commercial operations ofBulk Carriers & Tankers,besides serving in SCl'soverseas office in UK andSCI’sJointVentureCompanyin Tehran. Expertise in Chartering & Commercialoperations.

Directorship held in other public companies (excluding Foreign, Private and Section 8 companies)

SethusamudramCorporationLtd NIL NIL

Membership/Chairpersonship of committees of other public companies(Includes only Audit Committee and Stakeholders Relationship Committee)

NIL NIL NIL

Number of shares held in SCI NIL NIL NILMembership/Chairpersonship of committees of other public companies(Includes only Audit Committee and Stakeholders Relationship Committee)

NIL NIL NIL

Number of shares held in SCI NIL NIL NILNumber of Board meetings attended

PleaseReferCorporateGovernanceReport

Relationships between Directors inter-se

There is no relationship inter se betweentheDirectors.

There is no relationship inter se betweentheDirectors.

There is no relationship inter sebetweentheDirectors.


DIRECTORS’ REPORT

To the Members,YourDirectorshavepleasureinpresentingthe70thAnnualReportontheworkingofyourCompanyfortheFinancialYearended31stMarch,2020.FINANCIAL PERFORMANCEThe comparative position of the working results for the year under report vis - a vis earlier year is as under:

(` in Crores)Particular Current Financial Year

(2019-2020)Previous Financial Year

(2018-2019)Revenue from Operations 4,425.44 3,872.85Other Income 242.95 232.23Profit/loss before Depreciation, Finance Costs, Exceptional items and Tax Expense 1,382.91 942.66Less:Depreciation/Amortisation/Impairment 671.27 658.46Profit /loss before Finance Costs, Exceptional items and Tax Expense 711.64 284.20Less:FinanceCosts 364.13 359.05Profit /loss before Exceptional items and Tax Expense 347.51 -74.85Add/(less):Exceptionalitems - -Profit /loss before Tax Expense 347.51 -74.85Less:TaxExpense(Current&Deferred) 45.16 47.14Profit /loss for the year (1) 302.35 -121.99OtherComprehensiveIncome/loss(2) 14.62 5.64Total (1+2) 316.97 -116.35Balanceofprofit/lossforearlieryears 306.32 422.67Less:TransfertoTonnageTaxReserve 21.00 -Balance carried forward 602.29 306.32TheabovefigureshavebeenextractedfromthestandalonefinancialstatementsasperIndianAccountingStandards(Ind-AS).

Appropriations:

Theworking results for your company for the year2019-20showsanet profit ofRs. 302.35crore.A sumofRs21crore hasbeentransferredtoTonnageTaxReserveforthefinancialyear2019-20.AfteradjustinganopeningcreditbalanceofRs.306.32crores(beingbalanceRetainedearningsbroughtforwardfrompreviousyear)andaddingitemsofothercomprehensiveincomeofRs.14.62croresthatarerecognizeddirectlyinretainedearnings,thereisacreditbalanceinRetainedearningsofRs.602.29croresason31stMarch2020.

Dividend:

TheBoardofDirectorsofyourcompanyispleasedtorecommendadividendofRs.0.75/-perequityshareofthefacevalueofRs.10/-each(@7.5%),fortheyearended31stMarch,2020.

The dividend, subject to approval of theMembers at the Annual GeneralMeeting scheduled to be held on 18.9.2020. TheMembers,whosenamesappearintheRegisterofMembers/listofBeneficialOwnersasonThursday,September10,2020i.e.thedatepriortothecommencementofbookclosure,willbepaidtheDividendforthefinancialyearended31stMarch,2020,asrecommendedbytheBoard,ifapprovedattheAGM.

The payment of dividend will be subject to deduction of tax at source. The dividend pay-out is in accordance with the company’s dividend distributionpolicy,whichisavailableontheCompany’swebsitehttp://shipindia.com/upload/policies/SCI_Dividend_Distribution_Policy1.pdf

Share Capital:

TheCompanyhasnotissuedanyEquityShareswithdifferentialvotingrights.Hence,noinformationasrequiredunderSection43(a)(ii)oftheCompaniesAct,2013readwithRule4(4)oftheCompanies(ShareCapitalandDebentures)Rules,2014isfurnished.TheCompanyhasonlyoneclassofEquityShareshavingfacevalueofRs10/-each.

Brief Analysis of Financial Performance

SCIhasreportedanetprofitaftertaxofRs.302.35croresforthefinancialyear2019-20.TheTankersegmenthasoutperformedother


DIRECTORS’ REPORT

segmentsduetohighdemandoftankervesselsresultingintohighTCY(timecharteryield).Bulksegmentperformancehasremainedsteadyandatparwithmarketconditions.TheTechnical&Offshoresegmenthasshownimprovementintermsofrevenueaswellasprofitduetolongtermcontractsandbetterutilizationofvessels.TheLinersegmenthasalsoshownimprovedperformanceintermsofrevenuebutcouldnotreflectthesameinsegmentresultsduetohigheroperationalcosts.Apartfromabove,lowsulphurbunkercostanddevalutionofrupeehas also adversely affected result of the company.

TheconsolidatednetprofitforthecompanyforFinancialYear2019-20was`336.48crores.

Performance and Financial positions of joint ventures and subsidiary included in consolidated financial statements:

Fig. (` in Lacs)

Particulars ILT 1 ILT 2 ILT 3 ILT 4 ICSLAs on 31.03.2020 31.03.2020 31.03.2020 31.03.2020 31.03.2020Total Income 17,375 17,107 18,673 18,884 0.32PAT 6,747 6,701 653 4,654 (0.082)Equitycapital 17 17 8 32000 5Numberofequityshares 10000 10000 10000 42448300 50000EPS(Rs/share) 67,470 67,010 6,532 11 0Dividend - - - - -Networth 40,042 39,688 (13,680) 24,179 (5)

NetImpactonConsolidatedprofitsfortheyearended31stMarch2020isincreaseofRs34.14croresuponconsolidationofabovejointventures and subsidiary . 1.0 Subsidiaries and AssociatesYourcompanyhasonesubsidiaryCompanyandhassixJointVentures.Investmentinsubsidiary“InlandandCoastalShippingLimited”wasdoneon29thSeptember2016.Itisawhollyownedsubsidiaryofyourcompany.Pursuanttosection129(3)oftheCompaniesAct,2013,astatementcontainingsalientfeaturesofoursubsidiaryandassociatescompaniesinformAOC-1isappendedtotheDirector’sReport.Inaccordancetosection136oftheCompaniesAct,2013theauditedfinancialstatementsofthecompanyareavailableonourwebsite www.shipindia.comSUBSIDIARY2.0 Inland and Coastal Shipping LimitedIndiahasalongcoastlineadmeasuring7500kmandalargenetworkofriversystems.Despitethis,verylittleattempthasbeenmadetointerlink these natural assets for a seamless, environment friendly transport system. In a bid to remedy this lacuna, during the Maritime India Summit2016,theInlandWaterwaysAuthorityofIndia(IWAI)enteredintoaMemorandumofUnderstandingwithTheShippingCorporationofIndia(SCI)on15thofApril2016todevelopthisfieldofdomestictransport.Bothpartiesagreedtoworktowardstappingthesynergiesof high sea shipping, coastal shipping and inland waterways to establish an integrated system of water transportation across the hinterland, the coasts and the high seas.Forthispurpose,theSCIBoardapprovedtheformationofadedicatedsubsidiarycompanyofSCI,basedinKolkata.TheCompanyhasbeennamedas“INLANDandCOASTALSHIPPINGLIMITED”(ICSL).Thesubsidiarycompanyisworkingondevelopmentofaviablebusinessplan on this segment.JOINT VENTURES 3.0 India LNG Transport Co.(No.1), (No.2) and (No.3) LtdSCIhasenteredintothreeJVCswiththreeJapaneseCompaniesviz.MitsuiO.S.K.Lines(MOL),NipponYusenKabushikiKaisha(NYK)andKawasakiKisenKaishaLtd(KLine)alongwithQatarShippingCompany(QShip)incaseofILTNo.1&2andQatarGasTransportCompany(QGTC)incaseofILTNo.3,eachowningandoperatinganLNGtankerdeployedintheimportofatotalof7.5millionmetrictonperannumofLNGfortheDahejTerminalofM/sPetronetLNGLtd(PLL).SCIisthefirstandonlyIndiancompanytoenterintothehigh-technologyoriented&sunrisesectorofLNG.SCIisthemanagerforthesethreecompanies,managingthetechno-commercialoperationsof3LNGtankers.4.0 India LNG Transport Co. No. 4 LtdSCIhadenteredinto4thJVformedinSingapore,withthesamethreeJapanesecompaniesviz.MitsuiO.S.K.Lines(MOL),NipponYusenKabushikiKaisha(NYK)andKawasakiKisenKaishaLtd(KLine)andPetronetLNGtoownandoperateone173,000CBMLNGTankerfortransporting1.44millionmetrictonsofLNGprimarilyfromGorgon,AustraliatoIndiaforcharterersPetronetLNGLimited.Thevesselis


nownovatedtoExxonmobilbyPetronetLNGandoperatingworld-widewithafocusonIndiaandFarEastregion.SCIisthemanagerforthiscompany and is managing the techno-commercial operations of the tanker.5.0 Irano Hind Shipping CompanyTheCompanyholds49%inIranoHindShippingCompany,P.J.S(IHSC)ajointventurecompany.AsperdirectivesreceivedfromtheGovt.ofIndia,ithasbeenagreedtodissolvetheCompany.ThereforeinvestmentinIHSCisclassifiedasassetheldforsale.6.0 SAIL SCI Shipping Pvt Ltd (SSSPL)SCIandSAILhadco-promotedaJVC“SAILSCIShippingPvtLtd”(SSSPL),whichwasprimarilytocatertoSAIL’sshippingrequirements.TheJVCwasincorporatedon19.05.2010.However,duetocontinueddepressedfreightlevels,theJVCcouldnotjustifytonnageacquisitionandboththeBoardsofSCI&SAILdecidedtovoluntarilywindupthecompany.ThecompanyhascompletedtheprocessofwindingupanduploadingofdetailsisawaitedbyROC.1.0 Fleet Position during the Year:Duringtheyearunderreport,whiletherehasbeenNILadditionstothefleet,twovessel(m.t.Ankleshwarandm.t.MaharajaAgrasen)weredisposedofffromtheSCIfleet.ThustheoverallfleetpositionofSCIstoodat59vesselsof5.311millionDWTattheendoftheyear.Fleet Profile during the Year

Particulars As on 31.03.2019 Additions Deletion As on 31.03.2020No. DWT No. DWT No. DWT No. DWT

1. (a)CrudeOilTanker* 20 3526550 - - 2 294948 18* 3231602(b)ProductTankers 13 862925 - - - - 13 862925(c)GasCarriers 1 53,503 - - - - 1 53,503

2. BulkCarriers 15 1022344 - - - - 15 10223443. Containervessels 2 115598 - - - - 2 1155984. Offshore vessels 10 25238 - - - - 10 25238

Total 61 5606158 - - 2 294948 59* 5311210*-InstrumentofSaleform.t.MaharajaAgrasen(Crudeoiltanker)wassignedwiththeBuyeron26.03.2020,whilephysicaldeliveryofvesseltookplaceon27.04.2020.2.0 During the period under report following vessels were disposed off from SCI fleet:

Vessel Name Type Year Built DWTAnkleshwar CrudeoilTanker 1994 147,474MaharajaAgrasen* CrudeoilTanker 1995 147,474

*InstrumentofSaleform.t.MaharajaAgrasen(Crudeoiltanker)wassignedwiththeBuyeron26.03.2020,whilephysicaldeliveryofvesseltookplaceon27.04.2020.2.1 Attheendoftheyear,theCompanyhadnonewbuiltvesselsonorder.2.2 Particulars of Loans, Guarantees and investmentsDetailsofLoans,GuaranteesandInvestmentsaregiveninthenotestofinancialstatements.2.3 Extract of Annual ReturnIn accordancewith section 134 (3) (a) and section 92(3) of the companies Act, 2013 readwith relevant rules, an extract of annualreturn in form MGT-9 as on 31st March, 2020 is appended to the Directors’ Report. A copy of the Annual Return is available at http://shipindia.com/investors/downloads2.4 Particulars of contracts/arrangements with related partiesParticularsofcontracts/arrangementswithrelatedpartiesreferredtoinSection188(1)oftheCompaniesAct,2013,intheprescribedformAOC-2isappendedtotheDirector’sReport.Thesetransactionsareatarm’slengthandenteredinthenormalcourseofbusiness.2.5 Particulars of EmployeesYourCompany,beingaGovt.Company, isexemptedtofurnish informationunderSection197ofCompaniesAct,2013videMinistryofCorporateAffairs(MCA)Notificationdated05.06.2015.2.6 Employees Stock Option SchemeTheCompanydoesnothaveanyEmployeeStockOptionScheme.

DIRECTORS’ REPORT


2.7 Company’s Policy on Directors appointment and remunerationThetermsofDirectorsappointmentandremunerationarefixedbytheGovernmentofIndia.2.8 Receipt of Remuneration by Managing Director from Subsidiary CompaniesSmt.H.K.Joshi,Chairperson&ManagingDirectoralsoholdingAddl.chargeofDirector(Finance)oftheCompany,hasnotreceivedanyremuneration from any of its subsidiary companies.2.9 Details of Presidential Directives issued by the Central Government and their compliance during the year and also in the last three

years are as follows:PresidentialDirectivedated28.02.2018, regarding implementationofPay revisionofBoard level andbelowBoard levelExecutivesandNon-UnionizedSupervisorsofCentralPublicSectorEnterprises(CPSEs)w.e.f.01.01.2017,wasreceivedandthesamewasimplementedinMarch2018.SCI-MaritimeTrainingInstitutehasfullycompliedwiththerequirementsofDirectorateGeneralofShippingpertainingtoconductofcoursesandhasalsocompliedwiththeIndianMaritimeUniversityguidelines.MTIisactivelyparticipatinginSwachhBharatdrivewithinthecampusandinpublicplaces.Cadets,trainees,facultiesandstaffareinvolvedin theactivitiesplannedat regular intervals. In linewithGovt.’s vision,SCI-MTIcontributedmassively in theswacchtapakhwada from17.09.2019to02.10.2019andorganizedvariouscleaningdrives,wallpainting,postermakingcompetition,essaywritingcompetitionetc.inthevicinityofMTIPowaiforincreasingawareness.SCI-MaritimeTrainingInstituteorganizedaMarchPastbyuniformedcadetsofMTIontheoccasionof“RashtriyaEktaDiwas(NationalUnityDay)”3.0 Risk ManagementPursuanttoRegulation21oftheSEBI(LoDR)Regulations,2015andamendmentsthereon,aRiskManagementCommitteewasconstitutedin theBoardMeetingheldon3.8.2019consistingofallFunctionalDirectorsandHOD(IT).During theFinancialYear theChiefFinancialOfficerwasalsonominatedintheRiskManagementCommitteewitheffectfrom1.11.2019.TheseniorMostDirectoristheChairpersonoftheCommittee.SCIhasapprovedRiskManagementframeworkandriskregistertobuildupastrongRiskManagementCulturewithinSCIinachieving company’s goals and objectives. The entity level Risk Assessment includes;i) Strategic Riskii) Operational Riskiii) FinancialRiskiv) ComplianceRiskInspecificSCIhasidentifiedriskswhichincludesvolatilityinfreightrates,bunkerprocurementexposure,delayinrevenuetransferetc.InSCI,concertedeffortsaremadeformitigating/containingandcontrollingrisks.Thetoppriorityinthepresentsituationincludestheimplicationsarising from endemic circumstance and continuing with the business as per the business continuity model by identifying the critical functions.3.1 Conservation of Energy, Technology AbsorptionTheinformationpertainingtoconservationofenergy,technologyabsorptionisformingapartoftheManagementDiscussionandAnalysisReport.3.2 Foreign exchange earnings and outgo (` in crores)

Particulars 2019-20 2018-19Foreignexchangeearned* 4500.52 4035.27Foreignexchangeoutgo* 4422.91 4221.69*includesdeemedforeignexchangeearningandoutgo.3.3 Public DepositDuringthefinancialyear2019-20,yourCompanyhasnotacceptedanydepositwithinthemeaningofSection73and76oftheCompaniesAct,2013readwiththeCompanies(AcceptanceofDeposits)Rules,2014andassuchnoamountofprincipalorinterestwasoutstandingasonthedateoftheBalanceSheet.3.4 Proposed Strategic Disinvestment of SCIDuringtheyearended31stMarch2020,DepartmentofPublicAssetManagement(DIPAM),GovernmentofIndiahasappointedthefollowingrespectivelyasTransactionAdvisor(TA),LegalAdvisor(LA)andAssetValuer(AV)forStrategicDisinvestmentoftheGovernmentofIndia’s

DIRECTORS’ REPORT


63.75%equityshareholdinginSCI.i) M/s.RBSACapitalAdvisorsLLP;ii) M/s.Luthra&LuthraPartnersandiii) M/s.ProtocolInsuranceSurveyors&LossAssessorsPvtLtdInformationsoughtbythethreeAdvisorsisbeingfurnishedbySCIfromtimetotime.MANAGEMENT DISCUSSION AND ANALYSISThefollowingremaininginformationw.r.t.toadditionofnewsubclause(i)underclause1inPartB(‘ManagementDiscussionandAnalysis)ofscheduleVofSEBI(LODR)Regulations,2015.TheCompanyhasidentifiedthefollowingratiosaskeyfinancialratios:

ParticularsStandalone Consolidated

2019-20 2018-19* 2019-20 2018-19*DebtorsTurnover 7.30 6.10 7.30 6.10Inventory Turnover 7.70 8.00 7.70 8.00Interest coverage Ratio 1.95 0.79 2.05 0.96CurrentRatio 0.53 0.60 0.53 0.60DebtEquity 0.38 0.53 0.37 0.51OperatingProfitMargin(%) 0.02 -0.08 0.03 -0.06NetProfitMargin(%) 0.07 -0.03 0.08 -0.02ReturnonNetworth(%) 4.14 -1.75 4.50 -0.87*Ratios of comparative period i.e, 2018-19 are basedon previous year figureswhich have been regrouped and rearrangedwherevernecessarytoconfirmtocurrentyearpresentationofthefinancialstatementsasperScheduleIII(DivisionII)totheCompaniesAct2013.Ratio – Details of Significant changes and explanation thereto:1) InterestcoverageRatio-InterestCoverageratioforstandalonehasincreasedto1.95inF.Y.2019-20ascomparedto0.79inF.Y.2018-

19.ThisisduetoincreaseEBITofRs.28420lakhsin2018-19toRs.71164inF.Y.2019-20.FinanceCostinboththeyearsisalmostsame.

2) Debtequityratio-Debtequityratiohasimprovedfrom0.53ason31stMarch2019to0.38ason31stMarch2020duetorepaymentoflongtermloanandprofitduringF.Y.2019-20

3) OperatingProfitMargin(%)-OperatingProfitMarginRatios is increasedasrevenuefromoperationaswellasnetprofitbothhaveincreasedascomparedtoF.Y.2018-19.RevenuefromoperationhasincreasedtoRs.442544lakhsinF.Y.2019-20fromRs.387285lakhsinF.Y.2018-19whereasoperatingprofithasincreasedtoRs.10456lakhsfromRs.(30708)lakhsin2018-19.

4) NetProfitMargin(%)-NetProfitMarginRatiosisincreasedasrevenuefromoperationaswellasnetprofitbothhaveincreasedascomparedtoF.Y.2018-19.RevenuefromoperationhasincreasedtoRs.442544lakhsinF.Y.2019-20fromRs.387285lakhsinF.Y.2018-19whereasnetprofithasincreasedtoRs.30235lakhsfromRs.(12199)lakhsin2018-19.

5) ReturnonNetworth(%)-NetprofithasincreasedtoRs.30235lakhsinF.Y.2019-20fromRs(12199)lakhsintheF.Y.2018-19forstandaloneandtoRs33648lakhsfortheF.Y.2019-20fromRs(6266)lakhsintheF.Y.2018-19forconsolidatedresults

A. INDUSTRY STRUCTURE AND DEVELOPMENTSi) World ScenarioTheworldGDPgrewbyanaverageof2.9%in2019,comparedtotheeconomicexpansionofabout3.6%inthepreviousyear.TheIMFhasreportedgrowthestimatesfor2020and2021as-3.0%and5.8%respectively.Suchextremevariationforatwoyeartimespanmayseemquiteunreasonable at any other time, however, at this juncture in time, the global reality is at such a precarious state that even these numbers seem to beinorder.Thissituationisrenderedbythecolossal,once-in-a-centuryglobalhealthcrisisofCOVID-19.Thiscrisisisquitedifferentfromthepreviousglobalfinancialcrisisof2008,inthatthisoneisprimarilyapublichealthcrisis,witheconomicandfinancialcrisesbeingderivedfromit.Therapidglobalspreadofthecontagionhasmadeitapandemic.AndwithmosteffectivetoolstocombatthespreadbeingSocialDistancing,QuarantinesandLockdowns,thepandemichassentmajoreconomicandfinancialshockwavesaroundtheworld.Theeconomicthroughputacross theworld contracted substantially, putting severe strain on businesses. The Corona virus pandemic has become the singlemostpredominantfactorinshapingtheglobaleconomyinshort-to-mediumtermfuture.WorldhopesforasharpV-shapedrecoverywithresurgenceindemand(hencetheIMF’sglobalgrowthpredictionof5.8%jumpin2021)oncethelockdownsbegintoease.COVID-19pandemic’simpacthassinglehandedlyputonthesidelinesalltheotherglobaleconomicissuessuchasUS-Chinatradetensions,VenezuelanandMiddleEasterncrises,attacksonshipsinGulfofOman&RedSea,risingeconomicinefficiency&politicalinstabilityinLatinAmerica,sluggishgrowthinAsiaetc. Such major global economic-geopolitical issues have taken a backseat, underscoring the severity of impact of the pandemic.

DIRECTORS’ REPORT


In advanced economies, the economicgrowth is expected to beput in reversegear, projectionsbeing -6.1% for 2020, on account ofmassiveinfectionnumbersinUS&businessshutdownsthroughoutCanada,AustraliaandRussia,whileEuropean&UKeconomiesalsosufferedheavilybycoronaviruspandemic.Meanwhile,EMDE(EmergingMarketsandDevelopingEconomies)areexpectedtofareabitbetter,althoughstillshrinkingbyaprojected1%in2020,ridingonthebackofChina,JapanandSouthKoreawhoseemtobecopingwellwiththepandemic.However,therearemanyinherentriskstothisforecast,asthepandemicsituationisstillliveandverydynamic.LargepopulationsmeanmanyAsianeconomieslikeIndia,Indonesia,andChinawillhavetotreadcarefullyforasubstantialamountoftimegoingforward, as risks of infections become exponentially high as economic activity re-opens. This dampens their aggressive economic growth prospects.Also,largeamountofforeignportfolioinvestmentscomingtoEMDEsfromadvancedeconomiesmightdeclinethisyear,makingacuteshortagesofnewinvestmentfundswithEMDEs.For thenext twoyears, theglobalGDPgrowth is forecasted toshrink to3.0% in2020and thenbounceback to5.8% in2021on theassumptionofquickreboundindemand.During2020,healthcriseswill takeprecedenceovereconomicworries.Still,almostallmajoreconomieshavedeclaredstimulus&reliefpackageswhichshouldprovidesupporttoalargechunkofbusinesses.Intheyear2021,theworldoutputisexpectedtocomesomewhatbackontrack,withgrowthbouncingbackto5.8%.ThePandemicisexpectedtobecontainedtillthenandwiththeunderlyingassumptionofswiftdemandrevivalandcontinuedpolicysupport,economyisexpectedtonormalizeii) Global GDPAccordingtoIMF,GlobalTradeVolume(goods&services)growthhasbeenonly0.9%in2019andisexpectedtoexperienceamassiveshockofaround-11.0%in2020.Indevelopedcountries,thetradevolumegrowthisexpectedtoshrinkmassivelyin2020,atanaverageofaround-12.1%.USAandItalybecameepicentersforthepandemicandmostoftheEuropehasalsosufferedalotbyahighnumberofinfections.Thisrenderedtheproductiveeconomicactivityalmostnon-presentintheseregions.Also,severelockdownsimposedbyCanada,Russia&majorEuropeancountriesweakenedtradegrowthintheregion.IntheEMDE(EmergingMarkets&DevelopingEconomies)region,thegrowthintradevolumeduringtheyear2019was-0.8%inimportsand0.8%inexports.China,amajorcontributortotheglobaleconomy,sawitsgrowthdiminishduetoimpactsoftraderestrictionsimposedontradewithUSA,andweakinvestmentsentiments.TheIndianeconomywasalreadyexperiencingsluggishnessinearlypartsof2019.Thisweaktrendcontinuedinsecondhalfof2019also,producingweakeconomicoutputnumbers.PersistentcrisisinVenezuelaandrisingpolitical uncertainty in many South American economies added to the weak sentiments. Overall, the world’s total trade volume is forecasted todeclinemassivelyby-11.0%in2020,onthebackdropofwidespreadeconomicdamagecausedbyCOVID-19.Statistics-wise,IMF’sWorldEconomicOutlookstatesthatglobaltradevolumewillmassivelyshrinkby-11.0%in2020andgathermomentumtowardsnormalizationthereafterto8.4%hikein2021,asagainst0.9%in2019.Thecombinedeconomy(GDP)ofdevelopednationsisexpectedtoshrinkby-6.1%in2020andthenriseby4.5%in2021.Whereas,thereportforecaststhateconomiesofEmergingMarkets&DevelopingCountrieswillshrinkby-1.0%andthenbouncebackby6.6%in2020and2021respectively,asagainstthegrowthof3.7%in2019.Goingforward,strongorganicdemandandaccompanyingdomesticaswellasinternationaltradewillbethekeygrowthdeterminantespeciallyforEMDEcountries.TheglobalGDPgrowthandcorrespondingeconomicactivitydirectlyrepresents the international trade(exportand imports)and in turnprovidesusefulpointerstotheshippingindustryasabout80%oftheinternationaltradebyvolumeiscarriedoutbyshipping.iii) Seaborne Trade, Fleet & MarketGlobally,theseaborneoiltrade(forbothcrude&refinedproducts)exhibitedadropof-1.32%in2019ascomparedto0.29%growthin2018.Withintheseaborneoiltradedevelopment,the‘Crudeoil’tradedecreasedby-2.2%withtotalfigureat2,059milliontonsin2019.Whereas,‘Producttrade’(excludingFuelOil)wasat714milliontonsin2019,increasingby1.2%.Thecrude&producttankerfleetsexpandedby6.35%&2.65%respectivelyin2019(whencalculatedbygrossdwt),ascomparedtofiguresof0.82%&3.92%duringthepreviousyear.Fortheyear2020tillearlypartof2021,mixedfortunesawaittheCrudeandProductstankermarkets.OnCrudeside,themarketsexperiencedafreightlevelsurgeduringQ12020-21,broughtaboutbysteepcontangosituationowingtosomeofthelowestoilpricesinrecenthistory.However,crudetankermarketisexpectedtosoftenasoildemandreturnstonormalcy.OnProductsside,theslumpindemandforrefinedpetrochemicalproductshashamperedgrowthprospectsandthusproducttankermarketsareexpectedtoremainfairlystagnantduring2020.Thedrybulktradeshowedamoderategrowthof1.5%involumeoverthecourseoftheyear2019,howevertheforecastsfor2020arenotpromisingowingtothePandemicrelatedsteepdecreaseinrawmaterialdemand.Negligibleproductionaswellasconsumptionactivityduetopandemichasbroughtdownthedrybulktonnagedemand,asrawmaterialdemandhasdriedup.Thetotaldrybulkfleetgrowthratewasabout3.84%in2019,whichismoderatelyhigherthanthatin2018figureof2.97%.Duetolowdemandofdrybulkmaterialsin2020,drybulkshipcharterratesareexpectedtoremainsoftduringthefirsthalfof2020.However,afterasteepcorrection,thedrybulkcharterratesareexpectedtorecoverfromlastquarter2020asdemandnormalizesandfleetgrowthremainssubdued.iv) Indian Scenario

DIRECTORS’ REPORT


AsperCentralStatisticsOffice(CSO),Indianeconomygrewbyalowerthanexpectedrateof4.18%(estimated)inFY2019-20,ascomparedto thegrowth rateof6.1% in2018-19.Thegrowthnumbershavecontinued to exhibit a downward trenddue to lackofmajor capitalinvestments, lower domestic demand, stagnant manufacturing sector and dampened sentiments across the sectors. Meanwhile, there have beennomajorfactorsrenderinganupwardswingintheGDP.Acombinationofthesefactorshastherebycausedthegrowthtoslipup.Theagriculture/farmingsectorexhibitedanencouragingannualGVA(GrossValueAdded)growthof4.0%in2019-20,whilethesectorhadregistered2.4%GVAexpansionintheearlierperiod.Thepowerandutilitysectors(Electricity,Gas,WaterSupplyandOtherUtilityServices)alsopostedanestimatedGVAgrowthatanannualrateof4.1%in2019-20ascomparedwith8.2%growthrateinthepreviousyear2018-19.AccordingtosourcesfromMinistryofCommerce,India’sexportsinvaluetermsdeterioratedsignificantlyby-11.64%toUS$291.65billionin2019-20(calculatedbasisdataavailableonlytillFeb’2020),whileimportsalsodecreasedsignificantlybyafigureof-13.86%toUS$442.81billion(calculatedbasisdataavailableonlytillFeb’2020).Oneofthemainreasonsforthisextraordinarydropinimportswassubstantiallylowerlevelsofcrudeoilpricesoverthefinancialyearperiod.AsperPressInformationBureau&IndianPortAssociation(IPA),thequantumofCargoTrafficatIndia’s12majorportsroseby0.98%intheperiodApril2019toMarch2020i.e.cargotrafficrosetoaround704.82milliontonsintheperiodApril2019-March2020period,ascomparedto699.1milliontonsinthepreviousyear.Lookingatcommodity-wisebreakdownofcargotraffic,thelargestcommoditygroupinthetotaltrafficwasP.O.L.(Petroleum,Oil&Lubricants)witharound33.65%share,followedbyContainertrafficat20.85%,Thermal&SteamCoalat13.11%,‘OtherMisc.Cargo’(10.06%),Coking&OtherCoal(8.08%),IronOre&Pellets(7.80%),OtherLiquid(4.19%),FinishedFertilizer(1.32%)andFRM(0.94%)respectively.TheperformanceoftheIndianportshas improved over the years as a result of many measures initiated by the Ministry of Shipping focused towards elevating the performance ofports.Theseincludemechanizationoftheterminals,focusonimprovingtheTAT(turn-aroundtime),introductionofnewprocessesandpracticesforquickevacuationofcargo,extendeduseofnewtechnologieslikeelectronictagging,block-chainetc.,specialthrustoncoastaltransportation, expansion/modernization of port-related infrastructure and skill development of port employees.On the other hand, theexistingnon-majorports,especiallyprivateports,continuetogrowduetofactorssuchasadiversifiedcargoportfolio,superioroperatingefficiency,contemporaryinfrastructureandthepresenceofcaptivecargostreamsv) StrengthsYearsofexperienceinShippingtogetherwithdiversifiedfleetacrossallmajorsegmentsgivesSCIauniqueabilitytoexploitdemandgrowthinanygivensegmentwithaquick-moveradvantage.Newacquisitionshavebroughtdownaverageagefrom18yearsin2007toabout11.28yearspresently.SCI’sfleetcompositionwithIndiacentricapproach,theabilitytorespondtochangesinmarketandswiftdecisionmakingoffersflexibilityinoperations.LongstandingCOArelationshipswithmajorIndianOilRefineriesoffercargosecurity&employmentassuranceformajorpartofthetankerfleet.vi) OutlookTheprospectsforglobaleconomypointtooneofthewidestpossiblerangesofgrowthfrom-3.0%to5.8%in2020-21.Inthetankermarkets,thecrudetankermarketfreightlevelsareexpectedtocomedownfromthereasonablyhighlevelsofApril-May2020.TheglobalcrudeoiltradebecamequiteweakduetoCOVID-19,causingtheoilpricestofalldown.However,remarkably,insteadoffallingdownalongwithoildemand,crudetankerfreightratesspikedhigherduetoriseinusageofvesselsasfloatingstorage.Now,asoildemandbeginstoshowstrengthin2ndhalfof2020,oilfromfloatingstorageswillbeconsumedfirst.Thustherewouldberiseincrudetankertonnage,causingcrudetankerfreight levelstofall.Thus,amoderatelypessimisticnextfewquartersforcrudetankermarketsfrom2H2020onwardsarepredicted. Theproducttankermarketsareexpectedtoremainunderpressureasaverylargeportionoftherefinedproductdemandisdestroyedbythepandemicandaccompanyinglockdowns.Thedemandforgasolineandotherrefinedfuelshasnosedivedsincealmostallformsoftravelhavecometoahalt.Petrochemicalproductsdemandisalsoexperiencingasimilarshocksincemostofworldisfocusingonconsumingonlyessentialitems.Thisscenariowillputproducttankershippingmarketsunderintensepressureduring2020-21.Inthedrybulkmarket,optimistictrendwasnullifiedbytheadverseimpactofCOVID-19ondrybulkcommodities.Thepandemicstoppedalmostallmanufacturingandconstructionactivities in its tracks.Due to this,demand forsteel,cementandcokingcoalwasadverselyaffectedtoalargeextent.Poortradeindrycommoditiespulleddownthedrybulkfreightmarketssignificantly.Also,thereisriseintonnagesupply compared to last year and this increased tonnage supply is expected to further strain market rate levels. However, there are some rays of hope as grain trade is looking strong and demand is expected to bounce back in countries where lockdowns are eased. ItwouldbeprudentheretomentionthatalloftheaboveforecastshaveanunderlyingassumptionofCOVID-19pandemicbeingcontrolledtoextentinthe2ndhalfof2020.Sincethesituationisongoingandverydynamic,delaysincontainingthevirusbeyondassumedtimelinesoreruptionofsecondary/tertiarywavesofinfectionmayfurtherweakentheglobaltrade,thussharplypullingdowntheshippingfreightmarkets.The outlook for shipping markets depends to a large extent upon overall global economic activity and upon readiness of the major trading economies inre-integratingwiththeworldmarketsvia increasedglobalization.Nationalpoliciesbackingfreemovementofgoods in the

DIRECTORS’ REPORT


global markets, enable companies to endeavor in building extensively global supply chains, thereby generating more seaborne trade. vii) Opportunities and ThreatsTheglobalGDPisexpectedtoshrinkby-3.0%in2020.Bothadvancedeconomiesaswellasdevelopingeconomieswillbehighlyimpactedbythepandemic-forcedlockdownsandbusinesseswillsufferthroughtheglobe,thustherecessionaryforecast.USeconomyisexpectedtocontractby-5.9%in2020,downfrom1.7%growthachievedinthepreviousyear2019.Asmentionedearlier,thepandemicsituationisvery dynamic and it has already created steep contango situation once. Tanker freight markets will be dependent to large extent on future utilizationofvesselsasfloatingstorageandproductioncutsofOPEC+andthelike.Regionswhereonshorestoragecapacitieshavealreadybeenstretchedareagoodbetforrisingfloatingstoragetonnagerequirement,whichwouldspurthatmarketupwards.Also,risinguncertaintyintankermarketsmeanssomeCharterersmaybekeentomid-to-longtermtimechartersatelevatedlevels.Thismaypresentadecentopportunity for tanker market owners. Strategically placed vessels in these regions will be primed to take advantage of this shifting dynamic. TheChineseGDPgrowth isexpected tobe1.2% in2020,sharplydownfromthefigureof6.1%exhibited in2019,on thebackdropofCOVID-19inducedlockdowns,tradinglimitations,demandslowdownandweakenedglobalsentimentshurtingtheexportorientedChineseeconomy.TheIndianGDPgrowthhasbeenbelowChinafortheyear2019,breakingtheearliertrendofIndiagrowingatafasterpace.Afterstaying at depressed levels throughout last year, the rising crude oil prices are expected to dampen the economic prospects of most of the developing Asian nations whose economies are oil-import dependent, thereby providing a case for mixed economic outlook. The Asia region (Emerging&DevelopingAsia)isexpectedtogrowby1.0%in2020,insharpcontrastwithachievedgrowthlevelof5.5%in2019(owingtoeconomicfalloutofpandemic),withIndiapoisedtogrowat1.9%.TheEuroeconomyisexpectedtoshowastrongcontractionof-7.5%in2020,withgrowthhamperedprimarilybythecountry-specificsystemicissues(Ex.Brexitimpact,GreekandItalianeconomies)andmajorlybylockdown-relatedeffects.TheJapaneseeconomyisexpectedtocontractatarateofabout-5.2%in2020.Risinginequality,weakinvestmentrealizationandrisingprotectionismintradeofferahugechallengetothelong-termglobalgrowth.Theriseof local-sourcing emphasis and reduced inter-dependency between nations due to pandemic experience, overall protectionism, possibility ofmultiplewavesofinfectionstriggeringcontainmentmeasures,lockdownsandresultantinspendingcurbs,thenear-constantinflationarypressureshamperinggrowthprospects,unpredictabilityinUSforeignpolicyaswellastimidgrowthincrudeoildemandremainthemajormacrorisks.Also,thepossibilityoferuptionofsimmeringgeopoliticaltensionsinvariousregionsacrosstheglobeposeasignificantthreattotheeconomicactivity&assuchpresentasignificantmacrorisk.Therecentlytrendingsaberrattlingonprotectionisttradeandemphasisontrimming of global supply chains to support local sourcing by large economies could curb seaborne trade growth. Highly reduced economic activity may destroy oil demand for near term too, since crude inventory build-ups could remain at high levels for a prolonged duration. The risingcrudeoilpriceshavestrainedtheeconomiesofoilimportingcountriesinbothAfrica&Asiawhointurnmaybeforcedtocutsubsidiesandthismayconsequentlyhurtsecondarydemand.ThemostflagrantcauseforconcernacrossallsegmentsoftankersandbulkcarriersistheparadigmshifttobecausedbyfutureprogressofCOVID-19pandemic.Similarlyinthedrybulksegment,significanttighteningofmonetarypolicyissettohaveadragonglobaltrade,therebycausingdownturnsin manufacturing and construction projects, thus slashing demand for raw materials which are major dry bulk commodities. Also, tonnage oversupply is again looking to make a comeback in dry bulk trading economics. This is forecasted to put a short term strain on dry bulk shipping markets. Additionally, the declining cost of renewable energy and its growing acceptance and ever increasing compatibility remains aconcern for the traditionalcoal importers. In India,Coal India,which is themajorcoalproducer,continues to focuson increasing itsdomestic production and this thrust to reduce dependence on coal imports might adversely affect the seaborne coal import trade to India. Morerecently,ithastobenotedthatpandemicsituationarosebeforeUS–Chinacouldconcludetheirmuchanticipatedtradedeal.AgainwhenthepandemicbegantospreadinEuropeandAmericas,therewereeruptionsoftensionsbetweenthetwoeconomicgiants.ProlongedstrainedrelationsbetweenUSandChinastandtomakerecoverymorechallengingforthedrybulkmarket.ThemostflagrantcauseforconcernacrossallsegmentsoftankersandbulkcarriersistheparadigmshifttobecausedbyfutureprogressofCOVID-19pandemic.B. SEGMENTWISE FLEET & MARKET STUDYa) Crude Oil & Product TankersIntheyear2019theglobaldemandforCrudeOilregisteredamarginalincreaseof0.71%to99.8mbpd(millionbarrelsperday)overthepreviousyear.Itisforecastedthatglobaloildemandwillregisterasharpdeclinein2020owingtoCOVID19disruption.AsperfiguresfromIEA(InternationalEnergyAgency),oildemandplungedbyasmuchas30%inApril2020.Althoughtheoildemandisexpectedtorecovertosomeextentasquarantineseasegradually,stilloveralldemandisexpectedtofallby9.4%in2020.Fortheyears2020and2021,thedemandwill be dependent upon lockdown restrictions and pace of economic activity in these years. TheIndiancrudeoildemand,whichhadbeensteadilyrisingforthepastfewyears,stagnatedataround226.96MMTlevelsin2019-20.ThestagnationindemandindicatesthatIndianeconomywasexperiencinggradualslowdowninactivities.Inlaterpartsofthefinancialyear,thealreadystrugglingoildemandwasdealtamajorblowbypandemicsituation.Similarto2017-18,IraqremainedIndia’stopcrudeoilsupplierin2018-19also,asperthedatapublishedbyoilanalysts.

DIRECTORS’ REPORT


USdomesticcrudeoutputislikelytodecreasebyabout1mbpdin2020,asignificantreduction10.98%overtheyear.AftersharplyrisingforthelastthreeyearsUScrudeproductionisexpectedtodecreasein2020,aspersistentlylowoilpricesareforcingUSshaleoilproducerstocurtailproduction.Meanwhile,OPECcountries&theirnon-OPECallies(collectivelyknownas(OPEC+),againrestrictedtheirproductionin2019,viafurthercutsbySaudiArabiaandsteepoutputlossesinVenezuela.Boththesephenomena,alongwithincreasingtrendindomesticUSproduction(asoilpricesimprove)mayresultinincreaseinUSoilexports,whichwouldboostthetankertonne-miledemand.Intonne-mileterms,thecrudeoiltradecontractedby-2.2%in2019ascomparedtothepreviousyear,whileproductstradeincreasedby1.2%inthesameperiod.Thereweredeliveriesof28.3milliondwtofCrudeoiltankertonnageand3.3milliondwtofProducttankertonnagein2019.Lookingfurtherdowntheline,theexpecteddeliveriesofCrudeoiltankersin2020and2021are14.3milliondwtand15.5milliondwtrespectively.ForProducttankers,therespectivefiguresare1.6milliondwtand3.8milliondwteach.Newbuildingpricesforcrudetankerssawarisein2019,increasingby4-5%onaverage,duetoincreasingfreightratesandrisingnewbuildingcosts.However,thepricesareforecastedtosoftenasweakoildemandwilltranslateintoweakorderbook.Meanwhile,Newbuildingpricesforproducttankersalsoincreasedin2019,increasingby4-6%onaverage.The near future crude as well as product tanker freight markets will strongly depend on how the pandemic situation develops, as global oil demandisgreatlyinterlinkedwiththesame.Theaveragespotrateyield(TCE)ofTD3CrouteofAG/ChinaforVLCCwasaboutUS$34,300/dayin2019.ThefuturemarketinthissegmentappearstobeintherangeofUS$28,000-50,000/day,impactedsignificantlybyglobalcrudeoildemandshockandalotalsohingesonutilizationofVLCCsasfloatingstorages.OneYearTCrateforVLCCwasaboutUS$37,800/dayin2019,withanupwardstrendin2020,afterwhichalotwilldependofeconomicrecoveriesintheoilimport-intensiveregions.TheSuezmaxrateyieldonWestAfrica–NorthWestEurope(TD20)routewasaboutUS$24,200/dayin2019whichisexpectedtoclimbupsignificantly.ForAframax,thespotrateonAG/FarEastroute(TD8)wasUS$19,600/day.Thesefreightlevelswerenoticeablyimprovedduring2019,butasignificantrisewasseeninfirsthalfof2020acrossallsegments,offeringamuchneededrelieftothecrudetankerowners.ForProducttankers,LR1SpotrateonAG/Eastroute(TC5)wasUS$14,300/dayin2019andexpectedtoexhibitanupwardtrendin2020and2021.AverageoneyearTCrateforLR1wasUS$16,500/day,whichisanimprovementoverpreviousyear’srate,howeverstillnotenoughforownerstoearnsizeableprofits.TheoneYearTCrateforMRtankerswasUS$14,700/dayin2019andisexpectedtobearoundthesamelevelofUS$14,700/dayoverthenextyear.YourcompanyhasfiveVLCCs&allwereoperationalduringtheyear2019-20.TheyweremainlyemployedonamixofCOAvoyages&spotvoyagecharterswithIndianaswellasforeigncharterers.TheCOAvoyagesearnedhandsomereturns,whilespottradesalsoreturnedreasonableyields.YourSuezmaxtankersweremainlydeployedwiththeIndianoilindustryandperformedCOAvoyagesundertheHPCLCOA,whilealsooccasionallyperformingspotvoyagesforIndianandforeigncharterers.MTDeshShaktiwasemployedundertimecharterwithanIndianoilPSU.OlderSuezmaxvesselshowever,unfortunatelyhadlesseremploymentdaysduetoperformanceissues&problemsinportacceptances.TheSuezmaxandAframaxCOAearningsarebasedonAFRA,whichhasbeenmoderatethroughouttheyear.Thetimecharter rates compare well with market benchmarks.Earningsofyourcoiled/doublehullAframaxtankerswereinlinewithmarkets,alongwiththeaverageofbenchmarkyieldsunderTD8(ArabianGulftoSingapore)andTD14(Indo-Australia)routesonthebackofCOAvoyagesandtriangulationspotvoyagesowingtointermittentfueloilarbitragetradeswhichminimizedballastvoyages.TheAframaxesmainlyperformedIndiacentric-FarEast/RedSeavoyages,alongwithcoastal movement of heated crude oil and occasional lighterages in Indian waters.FiveLR-ItankersoftheSwarnaserieswereemployedonIndiancoastonamixofCOAs,spotvoyagesandtimecharters,cateringtoIndiancoastalcrudemovementoftheIndianoilindustry.Theyalsohadotherkindsofemploymentssuchaslighterageoperations,FPSOloadingsandfloatingstorageetc.Theirearningscomparewellwithmarketlevels.AnotherLR-ItankerMTSwarnaKaveriwasusedasaCPPtankerforhaulingCleanPetroleumProductcargoesworldwide.ItwasemployedwithScorpioLR1pool.YourGPproducttankersintheSwarajyaSerieswerewellemployedwithIndiancharterersontimecharter&sporadicvoyagechartersandtheir earnings are in line with market averages.ThethreeMRproducttankersintheSwarnaseriesweregainfullyemployedwithIndianaswellasForeigncharterersandtheirearningscomparewellwiththemarket.MTSwarnaMalawasdeployedonSpotvoyageswithforeigncharterersforlongperiodsduringthefinancialyear.MTSwarnaKalashandMTSwarnaPushp,whichweredeployedalongIndiancoast,wereemployedinaprofitablemixoftimeandvoyage charters supporting coastal product movements.ThetwoLR-IItankersMTSwarnaJayantiandMTSwarnaKamalwereemployedwithforeigncharterersinamixofpools&voyagecharters.Their returns were stable and in line with available markets.

DIRECTORS’ REPORT


Outlook TankermarketshavebeenturnedupsidedownbytheimpactofCOVID-19.Incrudetankers,wehavetheunusualsituationoffreightratesbeing in inverse proportion with oil demand. As oil demand plummets, freight levels usually come down, but this time oil demand has plummeted to such lows that on shore oil storage capacities have been tested to their very limits. Thus oil producers and traders have been searchingforfloatingstorageoption,effectivelyreducingactivetonnageinthemarket.Asaresult,freightrateshavespikedupincrudetankermarkets.Ownersmakingeffectiveuseofthissituationstandtoachievesignificantgains.TheIMO2020bunkerregulationsareinforce.TheconsequentbunkercompositionchangeshallgeneratenewdemandforDieselOilandcleaner fuel, which mean shifting prominence for established trade routes and formation of some new trade routes. Moreover, the orderbook andfleetgrowthrateisexpectedtobeweakinnearfutureduetorecessionarypressures.Thus,ifdemandbeginstorecoversoon,theremightbesignificantjumpinproducttankertonnagerequirement.In Indian context, barring the present shock, the economy is expected to be on the growth track for the near future as many government initiativesandschemeskick in,givingaboost tomanufacturingsector.Consumption isalsoforecastedtobestrong.Thesefactorswilltranslateintorobustoildemand,lendingastronghandtosustainimportcargoesintothecountryaswellascoastaloilmovements.SCIisuniquelypositionedtocatertothesetradesandreapbenefitstherein.AlthoughtheAsianaswellasUScrudeoilimportswillexperienceadipin2020,mostoftheforecastsexpectthedemandtorecoverin2021andcrudeoilimportstoalsorisesubsequently.Thustheremaybeaupwardsspikeintankerratelevelswhenrefineryrunsincreasesimultaneously throughout the globe. Withitsdiversifiedandmoderntankerfleet,yourcompany’svesselsstandtosecureplentyofgainfulemploymentsandthecompanyiswell-equippedtowithstandcontingentmarketpressures.Risks and ConcernsThereweregeopoliticalandstructuralconcernstotheoiltradelastyearalso.Manyofthoseissues-USandChinatradetensions,sanctionsonIran,marineviolenceinMiddleEast,Venezuelancrisis,slowdownconditionsinUS,EuropeandsomeAsianeconomiesetc.stillpersist.However,COVID-19hasupstagedthemallandhasunfortunatelybecometheleadingcauseofconcernacrosstheglobe.Ithasdramaticallydeclined the oil demand worldwide and as mentioned earlier, the situation is very dynamic and the pessimistic forecasts pose a great risk to alloftradeandthusshippingtoo.Marketsmaybecomeveryfragileandunpredictableinnearterm,makingthemdifficulttogaugeandplanfor. Theimmediateaftermathofweakglobaltrade,lockdownsandquarantines,restrictionsonmovementandtravel isthedeclineinrefinedpetrochemicalproductsdemand.ThecleanproductsmarketswereshowingstrengthduetoIMO2020induceddemandrevival.However,fall of demand may cause the product tanker markets to be stagnant once again at the depressed levels, with limited upside potential due to returnofnegativesentiments.Jitteryproductstradeposesasignificantdownwardsrisktotheproductstankermarkets.b) Dry BulkThebenchmark,BalticDryIndex(BDI)rosemarginallytoanaverageof1298in2019-20againstanaverageof1252in2018-19registeringamoderate3.67%increase,reachingitshighestaveragemonthlyvalueinSeptember2019.Whencomparedto2019,drybulktradeissettoexhibitatradedeclineof-1.88%in2020,withtonne-miledemandfallingbyanestimated-1.27%.Thedrybulkglobaltradeisexpectedtogrowonanaverageof2.1-4.4%forsubsequent3years.DrybulkmarketswerealreadydepressedinQ42019-20whentheyweredealtamajorblowintheformofCOVID-19.MarketsinFebruary,thoughdepressed,weregradually recoveringasmoreandmorevesselswereexpected togo for retrofittingofscrubbers tocomply toIMO2020regulations,effectivelyreducingtradeabletonnage.However,duetopandemicuncertainty,manyownershavepostponedtheretrofitting’s,causingoversupplyoftonnage.Also,lossofdrybulkcargoesonaccountofweakenedmanufacturingandconstructionactivitystands to further strain the markets. Thedrybulkfleetgrewbyamoderate3.42%intheyear2019.Drybulkfleetgrowthcanbeattributedtolowincentiveforscrubberretrofittingandstrongdeliveriesin2ndhalfof2019.Ontheotherside,demolitionactivityisvirtuallyatastandstillowingtoshutdowns.Hence,drybulkfleetisforecastedtobeoversuppliedtill2021.Thereafter,weakorderbookandincreaseddemolitionactivitymeanthatdrybulkfleetwill consolidate and markets will improve. Thetotaldrybulktonnagedemandisexpectedtobeongrowingtrackforthenextfewyears,afteranobviousdipin2020.Thedrybulkseabornetradeisexpectedtoshrinkby-1.88%in2020,whilethetonne-miledemandisexpectedtoregisterafallof-1.27%.Globalseaborneironoretradeissettoshrinkby-1.65%(forecasted)in2020.WithregardtoNon-CokingCoal,India’simportsarepredictedtoreducemarginally,fromthelevelsof190milliontonsin2019toaforecastofaround186milliontonsfor2020.India’sureaimportsstoodconstant,onthebasisofstrongdemandandstepstakenbythegovernmenttoincreaseindigenousfertilizer

DIRECTORS’ REPORT


production.Thecountry,whichisamongtheworld’stopthreeconsumersofurea,producesabout24milliontonsureaasagainsttheannualdomesticdemandofabout32MMT.Indiaimported4.983milliontonsofureainfirst3quartersoffiscal2018-2019.UreamovementsintoIndia,whichisakeycargofordrybulkvesselsandispartofminordrybulkcommodities,hasforthelastfewyearsbeena“supportingtrade”forbulkersrangingfromHandysizetoPanamax.Graintradeprovidedapositivesupport tothedrysegmentduringtheyearFY19-20.Seabornetrade(imports)ofmajorgrainsremainedupbeat, recordingariseof2.3%in theyear2019,withmajorexportersbeingEuropeanUnion,USA,Ukraine,Argentina,Brazil,Russia,CanadaandAustralia.Ondemandside,encouragingtrendsaretherewithfactorssuchasgrowingpopulationtranslatingintogrowinggraindemand, increasing demand from Asian and African countries and increase in tonne-miles in the grain trade. Globalsteelproductionisprojectedtodecreaseby-1.18%in2020withtheimpactofpandemic.However,sharprecoveryisexpectedinsteelproductionin2021inChinaaswellasotherdevelopingcountrieslikeIndiaandVietnam.India’ssteelproductionhasflattenedrecently,and the ongoing lockdown will weigh on the steel production further. However, the Indian government’s push for infrastructure will eventually strengthendemandforsteeloverthenextfewquarters.Intheyear2020,itisprojectedthat169drybulkshipswillbesoldfordemolitionasagainst84drybulkersinthepreviousyear.Suchhighscrappingnumbersaremostlybecauseofimpendingscrubberretrofittings,andreducedfleetsizeisanencouragingsignforfuturedrybulkmarket. Intheyear2020,One-yearTimeCharterrateofHandymaxisprojectedtobeUS$8,600/-pdpr,whereasforSupramaxesthesameisUS$9,700/-pdpr.InthePanamaxsegment,theone-yearTCratein2020isforecastedtobeUS$10,200/-pdpr.Intheupcomingyears,thefreightrate forecasts exhibit an upward trend, with market forecasts showing handsome increases year-on-year. Thecompany’sdrybulkfleetnowcomprisesofeightmodernSupramaxvesselsofaround57,000dwteach&sevenmodernPanamax/Kamsarmaxdrycarriersofaround80-82,000dwtason31stMarch,2020.Thebulkcarriersfleetisyoungwithanaverageageof8.2years.Theearningsofourdrybulkfleetwereinlinewithmarkets.OurdrybulkcarrierswerealsoemployedonIndiancoastwithafewcoastaltimecharters&voyagecharters,whoseearningscomparewellwithmarkets.Inordertomaintainahealthycashflowyourcompanypreferredfixingthebulkcarriersontriptimecharterandshort-to-mediumtermtimecharters.OutlookDrewryhasmaintaineditsfairlyoptimisticoutlookofthedrybulkmarkets.Thefreightlevelsareexpectedtobeontherisingtrend.Thereisasignificantupsidetothedrybulktradeaseventhoughthereweremanydisruptionstothedrybulkloadingsin2020,stillthemarketsmaintainedreasonablefreightlevels.ManycountrieshaveofferedstimulusandreliefpackagesandanalystsarepredictingasharpV-shapeddemandrecovery.ThereareafewotherencouragingaspectssuchashighcokingcoalimportsinAsia,GraintradeexpandinginMiddleEastand African countries, strong government supports across the globe for reigniting the trade, which can be deemed as boosts for dry bulk trade.Thus,strategicallypositionedtonnagewillstandtogainbackhaulandtriangulationbenefitstoearngoodreturns.India’s continued push to phase off petcoke has caused a big spike in its coal imports in the recent years. The Indian coal imports are expected to rise in coming year too. This is a welcome development for our dry bulk ships, which are catering to a good chunk of the import coal cargoes for India.Indiahaslaunchedmanyschemessuchas“SaubhagyaYojna’,whichplantoelectrifyalltheleftoutIndianhouseholds.Suchambitiousplansforboostingdomesticelectricity,alongwithfocusoncreationofIndustrialinfrastructureisexpectedtogenerateasignificantdemandforelectricity.Governmenthasalsoproposedotherprojectslike‘Bharatmala’whichplantocreateanunprecedentedroadnetworkinIndiabyconstructingroadsspanningthousandsofkilometers.Thecoal,steel&cementneededtoimplementtheseschemeswillseeahighdemandgrowth in dry bulk tonnage, both for coastal movements as well as for imports.Weakorder-bookanddecliningnew-buildingactivityaswellaspossibilityofmorevesselsoptingforscrubberretrofittingshouldkeepthedrybulkactivetradingfleetincheckandpushthemarketsupwards.Risks & ConcernsAdvent of renewable energy-centric policies and increasing use of renewable energy sources as a means of mass-scale production, poses asignificantthreattothedrybulktrade.Manycountriesareshiftingfocusfromtraditionalenergysourcestowardsrenewablesourcesofenergy&areactivelybuildingstrategicinitiativesforthesame.Thiswillnotonlyreducethedemandforshippingoftraditionalenergysourceslikecoal&oil,butbringtheirpricesdownwhichwillmakeextantshippingcostsunviable.Thisputsaquestionmarkonfutureoftraditionaldry bulk cargo like coal in the long term.DomesticfactorssuchasbanonironoremininginGoa/Karnataka,lengthylegalprocessinvolvedinclearingtheprocedurestore-startthe mines, high export duty on iron ore in India will continue to negatively affect the growth of dry bulk demand on India export-centric dry bulk trades.

DIRECTORS’ REPORT


ApossiblesecondinfectionwaveofCOVID-19mayfurtherweakenthecommoditiestrade,thuspullingthemarketsfurtherdown.US–Chinatrade deal is still not comprehensively concluded, hence there is a lingering risk of trade weakening between the two economic giants. This mayfurtherincreasetheoversupplyoftonnageinmarkets.China’sironoredemandinfuturemaybeincreasinglymetbyAustralia,sinceBrazilianmininggiantValeisexperiencingdifficultiesinsustainingitsproductionlevels.Thiscouldhaveadverselyaffectedtonne-milesindry bulk trade. Grainandfertilizertradesareseasonalandcouldberelativelyshortterminnaturewithuncertainparcelsizeswhichrequiretimelypositioningof tonnage to exploit the trade.SCIwithcriticalmassinpanamaxesiscateringtotransportationofthreemajorcommoditiessuchasIronore,coalandgrain,whicharepronetobeaffectedbyeconomicslowdowns.Viewpersistingslowdowninthesemajortradesgloballytheearningsofpanamaxesmaysuffer.Theabsenceoflong-standingCOAs&similarassuredbusinessopportunitiesstandtomakeyourcompany’sdrybulktradevolatile&openfor adverse impacts by the market forces. One more aspect that may turn charter rates is delayed scrapping of the vessels (especially older tonnage), on account of temporary spikes in freight rates, which could lead to recurrence of overcapacity situation in the market. Themacroeconomicfactorssuchasinterestratevolatility,subsidiesonpetroleumproducts,volatilerupeevisà-visthedollarandinflationcontinue to plague the national demand. Shipping being a derived demand will be negatively affected by these factorsLNG TransportationLNGisplayingamajorroleintheenergymarketswithmanycountriesturningtonaturalgastomeettheirenergyneeds.LNGtradehasincreased from100million tonnes in2000 to354.7MT in2019.Therehasbeenan increaseof40.9MTsince theendof2018.Thisconstitutesan increaseofapproximately13%,asixthyearofconsecutivegrowth.50%oftheglobalLNGdemandgrowthupto2035isexpectedtocomefromAsia.TheLNGdemandwasexpectedtogrowat3.5%until2035.However,GlobalLNGmarketgrowthissettodeceleratesharplyin2020onthebackofsupplycutsandpandemic-drivendemanddestruction,thiswouldbephenomenonfor2020.Themarketsareexpectedtostabilisebytheturnof2020.Therecouldbeadeclineof4%indemandforLNGduetothelockdownandCOVID-19Withtheincreasingthrustoncleanerfuels,theAsianmarketshaveseenrapidincreaseintheusageofliquifiednaturalgas(LNG).Inanindicationofincreasingdemandfornaturalgasinthecountry,India’simportofLiquefiedNaturalGas(LNG)jumped18percentto33,680MillionStandardCubicMeter(MMSCM)in2019-2020,asweakerglobalpricesofLNGpromptedthelocalindustrytoconsumemore.AsiacontinuedtobethekeydestinationregionforLNG,accountingfor70%oftotalLNGimports.However,itrepresentedlessthan15%ofincrementalLNGdemand,insharpcontrasttothepreviousthreeyearswhenitaccountedfor90%ofgrowth.In2019Japan’sandKorea’sLNGimportsfellby7%(orover10bcm)amidstnuclearrestarts,whileChina’sLNGimportgrowthhalvedinabsoluteterms(from21bcmin2018tojustabove10bcmlastyear)asaconsequenceoflowereconomicgrowthandslowdownofthecoal-to-gasswitchingprogrammesOnthesupplyside,AustralianLNGexportsarecatchingupwiththelongtimeleadingsupplierQatarandareexpectedtoriseby10milliontonnesin2019.GlobalLNGsupplyhasexceededdemandbyabout40MillTonsin2019.BothEuropeandthedevelopingeconomiesinAsiaare likely to absorb all the additional supply.InternationalexpansioninAustralia,Qatar,MozambiqueandEgypt,combinedwitha continuously strong US shale gas export drive, ispushingdownLNGpricesfurther.Afleetofaround600shipsand140onordercoupledwithweakLNGdemandhasledtosituationofover-supplyofLNGships,increasedcompetitionandeverchangingmarketdynamics.LNGbuyerstendedtosignshorter,smallerandflexiblecontractsratherthangoingforlongtermcontractsgoingbeyond20years.LNGprojectsrequirelong-termLNGsaleagreementstosecurefinancing,andinordertoenabledeveloperstogoaheadwithnewprojects,themismatchneedstoberesolved.EncouraginglytheaveragelengthofthecontractssignedbyLNGbuyersincreasedfromabout6yearstoabout13years.Andtheglobalcontractedvolumehasmorethandoubledto600milliontonnesin2018.Globalproposedliquefactioncapacityhasreached904.4MTPA,withmajorityintheUSAustraliaandCanada.Theglobalregasificationcapacityhascontinuedtoincreaseto821MTPAbythestartof2020.TheLNGplayersaresimultaneouslylookingatalternateoptionssuchasFloatingStorageRegasificationUnits(FSRUs),SmallLNGcarriersforcoastalLNGshipping,FloatingLiquefiedNaturalGas(FLNG)carriersetcasnichemarkets.Thereare34FSRU’sworldwideand7FSRUsareunderconstructionforprojectsinnewmarketslikeBahrain,Bangladesh,IndiaandPanama.Indiaistargetingtoraisetheshareofnaturalgasinenergymixto15%fromcurrent6%by2025,andforincreasingimportstheimportterminalcapacityisexpectedtodoubleto47.5MTPAby2022.ReducingcarbonemissionsbyincreasinguseofLNGasatransport fue lisontheprioritylistofthegovernmentandisworkinginlineforsettinguptherequired infrastructure.Yourcompanyjointlyownsandoperates3LNGcarriersunderlongtermcharterswithcharterersPetronetLNGLimited,IndiafortransportationofLNGpredominantlyfrom Qatar.The4thLNGcarrierisunderlongtermchartertoExxonMobilLNGServicesB.V,Netherlands.Inordertoensure itspresenceinthenewareasoftheLNGmarket,yourcompanyisexploringopportunitiesforparticipationbyownershipand

DIRECTORS’ REPORT


inoperationsofFSRU,smallLNGcarriersandcoastalLNGshipping.Yourcompanyhasbuiltupapoolof trainedLNGofficersandtheexperienceofindependenttechnicaloperationofLNGtankershashelpedtoprovideshipmanagementservices.YourcompanyisjointlyworkingwithoneofitsJapanesepartner,andhastraineditsLNGofficersonconstructionandoperationsofFSRU.Theprojectisexpectedtobeoperationalbyendof2020.SCIsuperintendentswerepostedatKoreanshipyardforsupervisionofFSRUconstruction.NTPCVidyutVyaparNigam(NVVN)hasreleasedaRFQfora50MWLNGbasedgenerationplantinthesouthAndamanIsland,estimatedtobeoperationalbymidof2021.TheplantwillbeoperatedthroughDuelFuelie.LNG(sourcedfromFSRU)orHSD(sourcedfromIOCL).NVVMisduetocomewithatendershortlyinvitingbidsforprovidingendtoendlogisticsandLNGtothepowerplantbeingplannedinAndaman&Nicobarislands.Theprojectinfrastructurewouldneedconstructionofaterminal&jettystructure,FloatingStorage&Regasificationbarge(FSRB)andasmall-scaleLNGcarrierabout10,000-20,000m3toloadLNGfromIndian/overseasterminalfordischargeatPortBlair.SCIgivenitsexperienceinoperatingLNGshipsandterminals,isinterestedinoperatingtheterminal,theFSRBandthesmallLNGC,inadditiontobeinganinvestorintheproject.SCIhasjoinedhandswithIndianandOverseaspartnerstoformaConsortiumwhichwillparticipateintheRFQ.HoweverduetoensuinglockdownandCOVID-19situationtheprojectisexpectedtobedelayed.KLPL Terminal ManagementYourcompanyhassuccessfullyperformedthePortandMarineServicesContractattheKLPLDabholTerminalforfurther4yearsi.e.2015–2019.TheSCIteamsuccessfullyhandled72LNGtankercallsattheDabholLNGreceivingterminalandthetotalimportedLNGunderthecontractstandsat13.24millioncbm.Thecontracthascometoanend.LPG CarriersYourcompany’ssoleVLGCcarrier-VLGCNandaDevi,wasemployedunderspotvoyagesinitiallyinfirsthalfofthefinancialyearandthereonwardsitwasemployedwithIOCLunderatimecharteratanattractiveratecomparedtomarketlevels.DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCEThefinancialperformanceofthetankersegmenthasbeenlargelyinfluencedbyearningsontheVLCCs,SuezmaxandAframaxsegmentswhereSCIhashadamixofcrosstradecharters,marketlinkedContractofAffreightmentsandTimecharterbusinessestoeffectivelyhedgeemploymentandearningsrisks.OnthesmallersegmentproductcarriersandLRIdirtycarriers;theemploymentwasmainlytomeetthedomestic product and indigenous crude movements on long term contracts and time charter business. The mix of employment types and geographical concentration in niche coastal business segments has ensured returns in line with market. However, with globally weak tanker markets,therewasstrongcompetitionincoastal&producttradeswhichhamperedtheirearningstosomeextent.Internationally,ahealthyrise in market fortunes across the company’s usual trade routes resulted in very attractive charter rates. Overall, immensely attractive freight levelsmeantthetankerssegmentgaveaverygoodperformanceduringtheyear2019-20.The dry bulk segment is still recovering from historically bad period and loss of key cargoes such as Iron ore from India resulting in non-profitableballastvoyagelegstherebyreducingearnings.Althoughsomereliefwasofferedbycoalcargoes&minorbulksaswellasprofitablecoastaltrades,earningsremainedsubdued&attimesbelowbreak-evenlevelsduetolowfreightmarkets,especiallyinthelatterpartofthefinancialyear.Withrelativelyfewopportunitiestocapitalizeon,thedrybulksegmentgaveanunderwhelmingperformancefinancially.However the future forecasts mean there is potential for satisfactory earnings on the back of revived demand.2 LINER & PASSENGER SERVICES A Industry Structure & Developmentsi) World Scenario: Over the past two years, the container shipping industry has faced several challenges, starting with the biggest direct hit from the trade war thatstartedin2018andwhich,despitethesigningofthePhaseOneAgreementbetweentheUSandChina,isnotoveryet.Addingtothetradewarheadaches,werehigherfuelcostsduetotheIMO2020Sulphurregulationthatcameintoeffecton1January2020,andnow,thecoronavirusiscausingvolumestodrop.Importsof ladencontainerstotheUSWestCoastdeclinedin2019,forthefirsttimesince2011.Therehasbeennovisiblefront-loadingofgoodsin2019,andwithfurthertariffshavingbeennarrowlyavoidedinDecember,itisnotexpectedthatanyfront-loadingboostwouldcomein2020.Rather,expectationsarethatthetradewar,asitcurrentlystands,willcontinuetodragtradevolumesaswellasfreightratesdown.Intra-Asianvolumeshaveremainedflatin2019comparedto2018-aworryingtrend-aswithoutvolumegrowthhere,volumesonthelongerhaulroutesoutofAsiaareunlikelytogrow.Furthermore,globalcontainershippingdemandgrewbyjust1%inthefirstninemonthsoftheyear,adevelopmentwhichsparkedaflurryofblankedsailings.Atthesametime,thefleethasgrownby3.7%.Thesupplyanddemandsituationisclearlysettobewayoff-balance.Ontopofthat,wewouldwitnessdeliveriesofmanyultralargecontainerships(ULCS)sendingrelativelysmallershipsontootherroutes,knownascascading.Thesesmallershipsarenotnecessarilyverysmall,however,somecascadedshipshavecapacitiesover10,000TEU,andwillentertradeswherethereisnoappetitefor them, adding further pressure to freight rates and bottom lines. The trade multiplier could - in theory - return to healthier levels, bringing good news to shipping, if protectionist measures are rolled back and free trade is once again allowed to develop at its natural pace.

DIRECTORS’ REPORT


ContainershippingappearslikelytobeoneofthesectorsmostaffectedbyCovid-19,withglobalboxtradesettobeheavilyimpactedbydisruptiontotheworldeconomy,consumeractivityandsupplychains.Witheconomicactivityexperiencingamajor“shock”,(worsening)forecastssuggestadeepglobal recession inQ2at least,andan immediatenegative impactofCovid-19greater than thatof theglobalfinancialcrisis.TheIMFnowforecastsglobalGDPtoshrinkby-3%in2020.“Lockdowns”(>40%oftheworldpopulationinearlyQ2)have consolidated the impact on consumer activity, and many of the often complex supply chains of which container shipping is part have beenheavilydisrupted.Soitisnosurprisethatboxtradeisexpectedtoseeasevereimpact,includingasharpdropinQ2volumes.Inthepotential“bounce-back”scenario,aidedbystimulus,aresumptionofconsumeractivityandre-stocking,asthecrisisseesanend-point,globalgrowthcouldreturnlaterin2020.Ina‘weakercase’,knock-oneffectsfrombusinessclosuresandunemploymentcouldamplifythenegativeimpact.Beyondthecrisis,theremaybedebateaboutsupplychain“de-risking”andregionalvsglobal“tradeblocs”.Whateverthecase,theboxshippingmarketsareseeingmajornegativepressure.Thoughlowerfuelcostsandalimitedorder-book(10%offleet)seemhelpful,Covid-19istheover-ridingmarketdriver,and,intheshort-termatleast,containertrade’sexposureappearssignificant.TheCovid-19 pandemic is currently the primary driver of trends in the containership sector,with themarket outlook appearing highlychallengingintheshort-term.Withtheworldeconomy,consumeractivityandsupplychainscomingundersignificantpressure,asharpcontractioninglobalcontainertradeisexpectedinQ2atleast.Impactsarebeingfeltworldwide,withglobalboxshipportcallsinTEUdown3%y-o-yinApril,anddown7%y-o-yinthefirsthalfofMay,withrecentimprovementsintheChineseeconomybeingoffsetbymajordisruptionandeconomicpressureelsewhere.Thelevelofidlecapacityhascontinuedtobuild,standingataround11.5%ofthefleetbymid-May,upfrom10%atstartApril.Onthesupplyside,thepaceofboxshipdeliverieshasbeenverysubduedsofarin2020,withincreased‘slippage’expected.‘Lockdowns’intheIndianSub-Continenthavealsosignificantlyreducedrecyclingactivity.Totalboxshipfleetgrowthisprojectedat2.0%in2020.Theboxshippingmarketshavecomeunderpressuresofarin2020.Onthefreightmarket,theSCFIComprehensiveIndexstood16%belowthestartyearlevelinmid-May,althoughratesonsomerouteshavestabilizedsincemid-April.Charterratescontinuetobeeroded. The base case remains for an eventual ‘bounce back’ in volumes. However, suggestions are growing that some economic impacts from the crisis may be longer-lasting than initially expected, with the timing and strength of recovery subject to uncertainty.ii) Indian ScenarioWhileallcargosegmentsremainvulnerableduringtheperiodoflockdown,theimpactontheIndiancontainersegmentwillbemoreduetoits dependence on both domestic economic activity as well as global trade trends. Even before the pandemic, the segment was witnessing moderationduetofactorslikeglobaleconomicslowdown,US-Chinatradeissuesandotherfactors.SubsequentlyoncetheCovidpandemichappenedinChina,thesectorwitnessedadditionalpressureastheglobaltradecyclegotdisrupted.ThishadresultedinaslowdownincontainervolumesinIndiaduringQ4FY2020inMarchwitnessingmoderationatseveralports,apartfrompartialimpactofthelockdownimposedduringthesecondhalfofthemonth.Subsequently,inAprilthecontainersegmentwitnessedasteepdeclineof37%forthemajorports.Theglobalcontainertradesegmenthadwitnessedslowdownin2019duetotheabove-mentionedfactorsandisexpectedtowitnesscontractioninthecurrentfiscalduetoCovid-19lockdownsimposedbymajoreconomies.Therecoveryinthesegmentwillbedependenton the extent of the lockdown in major regions and changes in global supply chain patterns during the recovery phase. As such, container volumesinIndiaisexpectedtowitnesscontractionduringQ1FY2021andtheperformanceislikelytoremainweakduringQ2FY2021,whilesomerecoveryisexpectedduringH2FY2021.However,theimpactinH1FY2021isexpectedtoresultinafullyearthroughputcontractionfor the container segment in India. The recovery of essential product segments like agricultural products and healthcare items will be relativelybettercomparedtoproductslikeautocomponents,andengineeringitemsetc.,whichmayhavealongerrecoveryperiod.Lackofworkershasimpactedclearingofcargo,stuffing/de-stuffing,andintra-premiseslogisticsatports.Imports,includingdirectportdelivery,are increasinglybeingmovedtonearbycontainerfreightstations(CFS),bothbyroadandrail, tofreeupyard inventory.PartialwaiversforgroundrentanddetentionduetoevacuationchallengeswereextendedtillMay3.Anacuteshortageofdrivershas,however,impactedlong-leadhinterlandmovementforbothimportsandexports.InApril,theimportsatJNPTwereabout20%lower,whileexportswerearound55%lower,onyear.Weakerproductionduetosparinglyavailablemanpower,besidestransportationandclearancechallenges,hasfurtherimpactedexports.ManylinersalsoskippedcallsatJNPTandMundra,inApril,duetocongestionandpaucityofexports.Thesituationisexpectedtoimprovewithgradualresumptioninmanufacturing,albeitwithreducedutilization,andrelativelyswifterclearanceofexports(currently, importclearanceisgivenprimacybycustoms).Truckavailability(industryestimatespegcurrentfleetaccessibilityatamere20-30%)forlongerleadswillalsoincreaseasgovernmentcontrolsease.Itislikelythatexportofessentialssuchasagriculturalproducts,perishables, and pharmaceuticals will be given priority.iii) Strength & WeaknessesLinerDivisionofSCIhasvastexperienceinthetradewhichisthemostformidableforceinstillingconfidenceinthecargointerests/ownerswhocontinuetolendtheirinvaluablesupporttoSCI.ThecustomerfriendlyapproachatallthelevelsandSCI’scustomizedservicesputsSCIaheadintheleague.Thewidenetworkoftheagentsallacrosstheworld,providesandfacilitatesforlocalizedcontactsinmarketstooffercustomizedlogisticssolutions.Operatingpartnershipshavebeenforgedwithinternationallyrecognizedcontainercarriersinselectconsortia,toenhancecoverageandfrequencyonthemajortradingroutes.SCIisalicensedMTOinIndiaandalsohasInternationalFreightForwarding

DIRECTORS’ REPORT


License.BreakbulkoperationsarelargelyprofitableandpassengerservicesprovidedbySCIprovidestablesourceofrevenue,nottomentionthevitallinkthatsupportstheislander’stothemainland.EffortsareontoexpandtheIndia-centricfocustogarnerthebenefitsofeconomiesofscale.ForSCI’sLinersegment,needofthehouristohaveadequateownedtonnageandrelianceonin-charteredtonnagetotheextentofbare minimum as per market dynamics. Thefocusofyourcompany’sLinerDivisionhasalwaysbeentoberesponsivetotheemergingchallengesintheindustryandadoptthebest industry practices and provide its business partners and clientele a safe, reliable and economical shipping services, which is also an integralpartofourvisionandobjectives.LinerDivision’soperatingphilosophymakesitimperativetostreamlineandstandardizeproceduresand informationflow toenableoptimizeassetutilization, speedierandmoreconsistentdecisionmaking,andachievesynergybetweenCommercial,EquipmentControlandOperationssegments.iv) Opportunities & ThreatsGovt.ofIndiaistakinglotofinitiativesandismakinghugeinvestmentstoincreasethecapacityoftheIndianports.UndertheSagarmalaProgramme,thegovernmenthasenvisionedatotalof189projectsformodernizationofportsinvolvinganinvestmentofRs1.42trillion(US$22billion)bytheyear2035.MinistryofShippinghassetatargetcapacityofover3,130MMTby2020,whichwouldbedrivenbyparticipationfromtheprivatesector.Non-majorportsareexpectedtogenerateover50percentofthiscapacity.India’scargotraffichandledbyportsisexpectedtoreach1,695millionmetrictonnesby2021-22,accordingtoareportoftheNationalTransportDevelopmentPolicyCommittee.Thisisexpectedtoresultinsignificantimprovementinoperatingprofitabilityinthefuture.Newoperatingalliancesareexpectedtocontributeby allowingglobal carriers to further synergize network efficiencies and vessel deployment optimizationbringing about higher savings.ImprovingeconomicconditionsintheUSandEuropeisexpectedtoboostmarketfundamentalsandsupportcarriersintheirefforttorestorefreightrates.Animprovementinlineroperatingprofitabilityisalsoexpectedtoactasacatalystforhigherchartervesseldemandandhighercharterrates.Despiteimprovingmarketfundamentals,theindustryhastoovercomechallengesintheyearaheadduetoincreaseofmega-shipdeliveries.Thebreakbulksectorcontinuestomaintaingoodpotential inrespectofoceanfreightarrangementsofGeneralcargoes,Over-DimensionalCargoes(ODC),Projectcargoes,HeavyLiftcargoesetc.onaccountoftheGovernmentDepartments/PSUsandotherGOIorganizationsB Segment-Wise Performance 1 Liner Vessels:ThetablebelowshowstheprofileofyourCompany’sownedlinerfleethavingtotalcontainercarryingcapacityof8800

TEU.

Type of Ships As on 31.03.2019 Addition Scrapping As on 31.03.2020

No. Dwt (MT) No. Dwt. No. Dwt. No. Dwt (MT)

FullyCellular 2 115598 - - - - 2 115598

Bothcontainervesselsnamely,MVSCIChennaiandMVSCIMumbaiare12yrsold.Ason31.03.2020,3in-charteredcontainervesselshavingadditionaltonnageofabout112,000MTarebeingoperatedbyyourCompany.Inadditiontotheaboveownedandin-charteredvessel,yourCompanyalsohascargoloadingrightson20vesselsofitspartnersinvariousconsortiaarrangementsthatyourCompanyhaswithleadingshippinglines,suchasMediterraneanShippingCompany(MSC),ShreyasShipping.YourCompanycontinuedtodeployitsowned/operatedContainervesselsinthefollowingsectors:2 Container Servicesi) Himalaya Service (Erstwhile ISE Service)TheUK-CCellularContainerServicecommencedin1994withSCIasasingleoperatoroperatingthreevesselswith1,800TEUcapacities,whichwaslaterupgradedtoafixeddayweeklyserviceoperatingwithsevenvesselsofsimilarcapacity.Theservice,fromMay2009,wasoperatedinconsortiacomprisingoftwopartnersviz.SCIandMSC,witheightvesselsofwhichtwovesselswerecontributedbySCI.Sinceend-Feb2016,theconsortiacontributionhasbeenchangedtooneSCIvessel.Thisstrategicreductionhasbeendonetoimproveprofitabilityoftheservice.Theserviceisoperatedonroundvoyagedurationof63days.ii) IPAK ServiceInaslotswaparrangementbetweenSCIandMSC,SCIhasbeenallotted200TEUsslotsbyMSC,whichoperatesIPAKserviceinexchangeforsimilarslotsallottedtoMSContheISE-HEXService.iii) SCI Middle East India Liner Express (SMILE) Service & Pan India Service (PIX2)SMILEandPIX2servicesseamlessly linkupPersianGulfwithEastCoastof IndiaandWestCoastof India, thereby,strengtheningand

DIRECTORS’ REPORT


expanding SCI’s presence in the Coastal Shipping Sector keeping the historic service standards and schedule integrity with a weeklyfrequency.ThejointoperationonthisroutewillbeaforcemultiplierforSCIwhichwillprovideahighqualityofCoastalServicesonfixeddayfixedwindowbasiswithpotentialforevenbiggerexpansioninCoastalandnearCoastaltradeswithspecialemphasisontheEastCoastofIndiaports.Twoservicesviz.SMILEandPIX2withtheirservicerotationsmakesitfeasibletoconnectpan-Indianportswithanimprovedtransittime.SCIseekstocooperatewithotherIndianCompaniestoworkoutthebesttransportationsolutionsforthetradingcommunityvis-à-viscommercially,economicallyviableandenvironmentallyfeasibleoptions.SCIconnectedWestCoastofIndiatoSouthernandEasternportsofIndiavizKatupalli/Krishnapatnam/Vizag/Kakinada/Pradip/Haldia/KolkataduringMay2020andthePanIndiaserviceisnowstabilized,thus,promotingGOIinitiative‘Sagarmala’,thereby,increasingcoastalportsconnectivity.iv) Portblair ServicesYourCompanystartedanewstandaloneservice inDec’2018with2 in-charteredvesselsconnectingKolkata–Chennai–PortBlair routeprovidingconnectivityforcargofromWestandEastCoastofIndia(ECI)toPortBlair.ItfacilitateshippingsolutionstotheIndiantradeandconnectIndianMainlandtoAndaman&NicobarIslands.EffortsarebeingmadetoincludemoreECIportsincludingKakinadaandParadipto make these services viable.v) ECX ServiceYourCompanystartedonemorestandaloneserviceinMarch’19with1in-charteredvesselforprovidingconnectivityforWC/ECIcargoesonTuticorin/Kattupalli/Krishnapatnam/Haldiaroute.However,thein-charteredvesselforthisroutewasnotprovingtobecosteffectiveand,hence,redeliveredtotheowners.Thisrouteisnowbeingcatered-tobytheothertwoin-charteredvesselsplyingonEastCoastofIndia.vi) Feeder OperationsSCImakesfeederarrangementswith‘CommonCarriers’betweenvariousdestinationsontheIndiansubcontinent.vii) Slot swap arrangementsSCIentersintoslot-swaparrangementswithserviceprovidersdependingupontraderequirements.viii) Break-Bulk ServicesSCIarrangescarriageofbreak-bulkcargoesonspace-charterbasis fromvarious regionsacross theglobe includingUSA,EuropeandFarEastforimportsonaccountoftheGovernmentDepartments/PSUsandotherGOIorganizations,whichincludesShipmentsofOver-DimensionalCargo(ODC)/Projectcargo/HeavyLiftcargo/ IMOClassICargoesetc.andalsocontainerswhereSCIservicesarenotpresent.ix) Domestic Passenger–Cum–Cargo Service InadditiontoInternationaloperations,SCIwithten(10)managedvessels(ownedbyA&NAdministration)operatesdomesticpassengerandcargotransportationservicesbetweentheMainlandandtheAndaman&Nicobar(A&N)groupofislandsandinter-islands,onbehalfoftheGovernmentofIndia.Also,17numbersofForeshorepassengervesselsofA&NAdministrationaretechnicallymanagedbySCI.x) Other Coastal ServicesSCIalsomanagesOceanographic&CoastalResearchvesselsonbehalfofGovernmentAgencies/Departmentsviz.threevesselsownedbyGeologicalSurveyofIndia,underMinistryofMinesandonevesselofNationalCentreforAntarctic&OceanResearch,onevesselofCentreofMarineLivingResourcesandEcologyandthreevesselsofNationalInstituteofOceanTechnologyunderMinistryofEarthSciences.3 Manned & Managed VesselsThefollowingtableshowstheprofileofthePassenger-cum-CargovesselsandothervesselsmanagedbyyourCompanyonbehalfofthevariousGovernmentalOrganizations/Departments:

Type of Ships As on 31.03.2019 Additions Nos.

Scrap/ Redelivered

(Nos.)

As on 31.03.2020

Nos. Pax. Cap.

Cargo Cap. (MT)

Nos. Pax. Cap.

Cargo Cap. (MT)

Pax-Cum-Cargo 9 5763 4220 0 0 9 5763 4220

CargoShips 1 400 0 0 1 400

Other vessels 17Foreshore&8Research

1,601 250 0 0 17Foreshore&8 Research

1,601 250

Total 35 7364 4870 0 0 35 7364 4870

DIRECTORS’ REPORT


The pattern of deployment of these vessels is as follows: � ThreevesselsforcarryingPassengersandcargobetweentheMainlandandAndamanandNicobarIslands. � SixvesselsandOneCargoshipforInter-Islandsrun(A&NIslands). � SeventeenvesselsforForeShoreSectorrun(A&NIslands). � EightResearchvesselsofGSI,NCAOR,NIOT,CLMREcarryingoutscientificexpeditionintheIndianCoast.

C. MarketingSCI’smarketingteamcontinuestomakeregularcustomercallsthroughitsownofficesandalsoalongwithagentsappointedatvariousports in India and abroad in order to market its container and break-bulk services to the competitive world. Meetings with the agents are held periodically,andSCIrepresentativesalsoparticipateinvarioustrademeetsatmainlocationsinIndia.YourCompanyhasobtainedFreightForwardingandMultimodalTransportOperator(MTO)licensesandcontinuestouseitsvastexperienceandlargeagencynetworktorender3PL(ThirdPartyLogistics)servicestothecustomers.ThishelpsyourCompanytoretainthecargo-baseandtheclient-basewhilegeneratingadditional revenue.D. OutlookUnder thenewForeignTradePolicy(2015–2020), Indiaaims to increase itsshare in theglobal trade to3.5%by2020. Incentives toagriculturalexportsandextensionof thesameunderMerchandiseExports from IndiaScheme tounits inSEZarepartof thenewFTP.ThisisaimedtointegratewithMakeinIndiaandDigitalIndiainitiatives.Multipleinfrastructureprojects,eyeingtoimproveIndia’slogisticsefficiencyandhinterlandconnectivity,willboostthecountry’sboxtradeinthecomingyears.Someofthekeyprojectsthatwillbeagamechangerwhenfullyoperationalis(A)Multi-modalterminalunderJalMargVikasproject:The170croremulti-modalterminalatVaranasi,undertheJalMargVikasproject,willbeamajorlogisticshubconnectingNorthIndiatoNorthEastIndia.Thegovernmentwillalsodevelop35multi-modallogisticsparksforfreightaggregationanddistribution,multi-modaltransportationandwarehousing.(B)Portbasedmulti-productSEZatJNPT,firstofitskind,aport-basedSEZatJNPTwillbedevelopedwithFreeTradeWarehousingZone,EngineeringGoodssector,Electronics&HardwaresectorandPharmasector.(C)DedicatedFreightCorridor(DFC),DFCwillprovidelogisticssupportfortheMakeinIndiainitiative.TwoofthethreeDFCsarescheduledtobeoperationalinthenextthreeyears.DFCwillreducetheinlandtransittimesignificantly.(D)Sagarmalaprogramme,TheIndiangovernmentisimplementingtheSagarmalaprogrammeinphases,spanningover20yearsfrom2015-35.(E)EmphasisonVision2030encapsulatingDigitization,workingthroughOnlinePortalsvis-à-visServiceProviders,SingleWindowSolutions,“Made in India”concept for InlandWaterwayssmallershipsandbargeswithanaimofcommercializationofNationalWaterways,etc.E. Risks & ConcernsThe prolonged economic struggles of most shipping lines have made the maritime sector more sensitive to risk than other modes of transport. The most common maritime risks have traditionally been relatively predictable: natural disasters, mechanical failures and human error.Now,however,theincrediblegrowthofinternationaltradeandtheintroductionofnewtechnologiesmeanthatshippingindustryrisksare evolving. Once seen as a marginal problem for shipping, cyber risk is now considered one of the top threats. Ship data recorders have shown that humanerroraccountsforabout75%to90%ofmarineaccidents,amountingtomorethan$1.6billioninlosses.Numberslikethesehavespurred interest in autonomous ships that could move cargo more safely. In order for this to work, the industry will need to determine how much human backup would be needed to avoid collisions between manned and unmanned vessels.The most economic and environment friendly mode of transportation is yet to recover from the effects of boom – bust phase of growth and recession triggered by the recession of 2008.Global demand continues to remainweak amidst heightened uncertainty stemmingfrom factors such as trade policy and low commodity and oil prices. The industry continues to suffer from this weak demand and over capacityenvironment,whichhasconstrainedfreightratesanddampenedprofitabilityinmostshippingmarketsegments.Coupledwiththeinternationalgeopoliticaldevelopmentsviz.rebalancingofChineseeconomytowardsdomesticdemand,theemergingtradepolicydirectionofUnited States of America (USA) and looming tradewar betweenChina andUSA, continuedBrexit conundrum, Spiraling Inflation inVenezuela,PoliticalinstabilityinTurkey,Iransanctionsetc.theworldeconomyandtradehasbeenthrownintoanuncertainandchallengingterritorywhichcouldputtheglobaltraderecoveryatriskwithinevitableconsequencesforwidereconomy.F. Discussion on Financial Performance with respect to Operational PerformanceYourCompany’slinersegmentregisteredalossofRs.(131.31)croresinFY2019-20asagainstlossofRs(89.60)croresin2018-19.TheOperatingIncomeincreasedfromRs.593.62croresin2018-19toRs.644.88croresin2019-20duetobetterutilizationofvessels(incomeincludes ‘Income booked for managed vessels with higher remuneration). However, negative impact of high bunker costs and blanking off costsonISEsectorresultedinnetloss.YoumayliketonotethatyourCompanyisadoptingvariouscostsavingmeasuresaccruingtothe

DIRECTORS’ REPORT


linerservices,viz.,considerablesavingonfeederandtransshipmentcostsbyreducingcarryingcargoestonon-baseports,betterinventorymanagement, control on repair costs of vessels and containers. Our on-time schedule reliability on our services, particularly in Europe sector continues to be very good and comparable or better than the global players. G. Measures taken by us to improve our Services & OperationsLinerDivisionisensuringthatGeneralRateIncreasesarebeingstrictlyimplementedkeepinginmindthemarketsentimentsanddemand-supplygap.PerformanceofeachContainerServiceisbeingreviewedmonthlyfromthepointofviewofprofitability.Ultraslowsteamingplanned/achievedonthecontainerships.Linerdivisionhasalreadyexpandedit’stheCoastalandFeederServicesandistryingforfurtherexpansion.SCI’sstrategyhasbeentouseourIndianFlagshipsontheserouteswhenIndianFlagcommandsapremiumandtouseForeignFlagvesselsontheotherroutes.ForeigncompaniesdominateinIndianSub-continentfeederroutesandprovideseamlessconnections.BymutualcooperationwiththeotherIndianCompaniesthroughslotexchange,itisenvisagedthatfeederingfreightwouldberetainedwithinthecountry,whichwouldalsohelpinminimizingtheworkingcapitalrequirementsfortheDivision.Further,portslikeKandlaandnewlyemergingcontainerportsinEastCoastofIndialike,Kattupalli,KrishnapatnamandVizagareofferingsubstantialdiscountsontransshipmentcostsandstorage charges, and by using these ports optimally, substantial system costs reductions are being achieved. Our focus is to maintain right sizedleasedequipmentinventorytooptimumlevelstomakeservicessustainableandundertakingfirmnegotiationswithleasingcompaniesandvendorsforachievingdesiredresults.Aginginventoryisbeingreplacedbytheyoungerfleetatbetterterms.Weareidentifyingnichesectorstocommencenewservices,like,feasibilitystudybeendoneforintendedservicesviz.Ex-India/Maldives,Ex-India/Myanmar/Bangladesh/Thailand,extendingCoastalServicestoincludeIranianport(s)viz.Chabahar&BandarAbbas.OtherfeasibilitystudiesbeenconductedforserviceslikeEx-India/EastAfricanports.LinerdivisionhassloweddownonnewacquisitionsfornowwithISE/HimalayaServiceand iscontinuing tooperatewithone in-charteredvesselofabout8,500TEUcapacity.CAPEXexpansionplanned thisyear forcellularcontainervesselsforIndianCoastandtheoptioniskeptopenandDivisionisscoutingforsecondhandvessel(s)ifitfitscommercialrequirements.EngagementwithlandsideLogisticsPSUfirmsviz.CONCOR,BalmerLawrie,CWC,etc.forofferingseamlessmulti-modalservicesbetweenInlandlocationsandportsontheIndianCoastsaswellasoverseasports.WehavealsoundertakenfeasibilitystudyforsettingupownedorjointlyoperatedCFS/ICDsforvariousviableroutesandalsofreightforwardingoperations.Wearealsoindiscussionwith“InlandWaterwaysAuthorityofIndia”forundertakingtheircommercialoperationsonNW1andNW2.H. Material DevelopmentSCIiscateringtoadditionalports,like,KakinadaandParadiponEastCoastofIndia.I. Information Technology:SCIhasarobustERPsysteminplace.ADisasterRecoverySiteisbuiltatKolkataofficetoensurebusinesscontinuityduringanyemergency.PeriodicSystemAuditsarecarriedoutoninternalcontrols&cybersecurityandmostoftheirrecommendationsarebeingimplemented.E-tendering platform is being extensively used for procurements,which enable transparency and efficiency in procurement processes.VendorBillsarecentrallyregisteredanditsTracking&Monitoringsystemisimplementedtohaveabettercontrolonsettlinginvoices.Thesystemensurestransparencyandefficiency.SCIwebsitewww.shipindia.comiscompletelyrevampedwithanewlookandaccessibility.DuringCOVID19Lockdownperiod, InformationTechnologywasusedextensively toenable theemployees towork fromhomeand thebusiness continuity was ensured in all possible ways.3 TECHNICAL & OFFSHORE SERVICES A) Industry Structure and Developmentsi) World scenarioTheoffshoresupportvesselsindustryisdependentonutilizationofrigs,E&Pactivitiesandotheractivitiesinoilfields,whichinturndependsuponstrategicdecisionsofenergysecuritybyoilandgasproducers,shiftsinGovernmentpoliciesandlongtermcrudeoilpricetrends.TillFebruary2020,thepriceofBrentCruderangedbetweenUS$66~70/barrelandtheoilexplorationactivityhadalsoincreasedgradually.The offshore industry appeared to be on a path to recovery.Howeverthetwinblackswanevents-COVID-19pandemicandcrashintheoilpricestobelow$30perbarrelbytheendofMarch2020canhave an impact on the offshore industry in the next year. ii) Indian scenarioHistorically,India’sdomesticproductionofoilandgashasfallenshortofitsburgeoningenergyrequirements,compellingourcountrytorelyonimports.Thecountry'soilconsumptionwas213.7milliontonnesin2019-20whichwasmarginallyhigherthan213.2milliontonnesin2018.Incontrast,India'scrudeoiloutputfellfrom34.2milliontonnesin2018-19to32.2milliontonnesin2019-20asperPPAC(PetroleumPlanningandAnalysisCell)data.Agradualfirmingofthecharterrateswasobservedinthisyear.However,ratesarestillbelowbreakevenforcertaincategoriesofthevesselrequirements.

DIRECTORS’ REPORT


iii) OutlookTheworldeconomyforecastistofaceasevererecessionin2020,decliningby1.5%,followingglobaleconomicgrowthof2.9%inthepreviousyear.AsperOPEC,theglobaldemandforoilisalsoanticipatedtofallto92.82millionbarrel/dayin2020comparedto99.67millionbarrel/dayin2019.Thiscouldhaveanegativeimpactontheglobaloffshoreindustrywithboththedemandandutilizationoftheassetstofall.Manycontractsare expected to be renegotiated or cancelled by the oil companies.However, India still remains as the focus area for many offshore activities for the entire world. Although there might be a small impact of the fallen crude prices, the same is expected to remain only for a short term period and offshore activities in the Indian market are expected to continueinfullswinginthecomingyearaswell,especiallyconsideringtherisingrequirementinthedomesticmarketandtheGovernment’sfocus on self-sustainability.iv) Strengths and WeaknessesYourcompanyhasadiversifiedfleetofoffshorevesselswith02nos.80TAHTSVs,04nos.120TAHTSVs,02nos.PSVsand02nos.MPSVs,thusenablingittocatertorequirementsofvariousclientsintheoffshoremarket.Yourcompanyalsoownsafleetofyoungoffshorevessels,thus giving a technological advantage compared to the older vessels in the market. ONGCbeingthebiggestE&PCompanyinIndia,yourcompanyhasbeenemployingmajorityofitsvesselswiththemonshortterm/longterm basis. However to mitigate the risk of dependence on one client, your company has been in constant discussions with various other public/privateoperatorstodeployourvesselsfortheiroffshoreactivities.Thishasresultedinyourcompanytoincreaseitsclienteleaswellas gain technological experience in an array of activities being carried out in the offshore segment.v) Opportunities and ThreatsDuringtheperiodunderreviewtheoffshoremarketwitnessedgradualimprovementinthecharterhirerates,thussparkinghopesofbetteryearsahead,especiallyconsideringthelongspanofdepressedratesinthemarket.Theyoungfleetofoffshorevesselswilldefinitelyhelpyour company take advantage of the offshore market as it grows ahead. The low asset prices also present opportunity for your company to acquiresecondhand/resalevesselsataverycompetitivepriceanddeploytheminthemarketforimmediaterevenues,albeitavailabilityoftechnically suitable vessels. Atthesametime,bytheendoftheyear2019-20,thecrudeoilpricesdroppedsignificantly,whichraisesthethreatofanegativeimpactontheE&Pactivitiesintheshortterm.Additionally,manymarginalandnewplayershavebeentakingadvantageofthelowpricesofdistressedassets of troubled offshore players and are entering the Indian market, leading to high competition.vi) Risks and ConcernsYourcompanywassuccessfulinobtaininglongtermcontractof5yearsforoneofitsPSVsinthecompetitivetenderfloatedbyM/sONGC.Withthis,nowfouroffshorevesselsofyourcompanyareonlongtermcharter.However,remainingsixvesselsareonspot,whichentailstheriskofaverageutilizationofassetstobeonthelowersideconsideringmoreoperationalchallengesandlossofemployabledaysduringfrequentchangeofcharterinspotmarketforobtaininginspections/clearances.Inspiteofmajorityvesselsbeingonspot,yourcompanyachievedrevenueoperatingdaysofabout77%comparedtoindustryaverageof60%inAsia-Pacificregion.Theimpactthattherecentcovid-19pandemicwouldhaveinthefuturecannotbeascertainedandisaconcern.Duringlockdownperiodsinspection/clearancesfromauthoritiestoworkintheoilfieldarekeptonhold,whichcanresultindelayinhiringofvessels.Alsoextendedlockdownperiodscanresultincertainoperatorstodefertheiractivitiesresultinginreducedrequirementofvessels.Entry of new players in the Indian market with low capital expenditure is also major concern and challenge for your company. However, your companyismakingalleffortstoensurecontinuousemploymentfortheoffshorevessels,notonlyintheIndianwatersbutalsoinForeignwaters.B OFFSHORE ACTIVITIES:1 Information relating to the year under review viz 01.04.2019 to 31.03.2020: 1.1 SCI owned Offshore vessels:YourCompany’sownedoffshorefleetcomprisesof10vesselsi.e.02nos.80TAnchorHandling,Towing&SupplyVessels(AHTSVs),04nos.120TAHTSVs,02nos.PlatformSupplyVessels(PSVs)and02nos.Multi-PurposeSupportVessel(MPSV).Duringtheyear,one120TBPAHTSVviz.SCIKundancontinuedtoremainonlongtermcharterwithONGCand2MPSVscontinuedtheircharterwithDRDO.Further,yourcompanywassuccessfulindeployingonePSV(SCINalanda)onlongtermcharterof5yearswithONGC,afternecessarymodificationstowards‘ERRVB’compliance.Theremaining2nos.80TAHTSVs,3nos.120TAHTSVsand1no.PSVwerepredominantlyoperatinginthespotmarket/shorttermcharter.Withcontinuedefforts,yourcompanyhasbeenabletosuccessfullyobtain

DIRECTORS’ REPORT


businessfromvariousreputednational/international/privateclients.2 O&M of ONGC owned vessels2.1 Offshore Supply Vessels (OSVs) of ONGCYourcompanycontinuestoprovideOperation&Maintenance(O&M)servicesofsevenOSVsnewlybuiltbyM/sONGCatM/s.PipavavDefenceandOffshoreEngineeringCompanyLtd.Thesevesselsarebeingmanagedbyyourcompanysincetheirdeliveries,whichbeganfrom2013onwards.TheseO&Mcontractshavebeenawardedoncost-plusbasis,till31.03.2023,thusensuringlongtermbusinessforyour company.2.2 Mobile Offshore Drilling Units (MODU)In viewof theexpertiseof yourCompany inmanagementofoffshore vessels,ONGChadawarded long termcontract forMarineManManagementservicesoftheirtwoMODUsviz.“SagarVijay”and“SagarBhushan”,respectively,foraperiodof06years.YourcompanycontinuedtheO&MoftheseONGCownedMODUvesselsoncost-plusbasisandthepresentcontractsarevalidtill30.06.2022and18.07.2022respectively.2.3 Specialized vesselsDuringtheyear2019-20,yourcompanycontinuedtheOperation&Maintenancemanagement(O&M)ofONGC’soneDivingSupportVessel(DSV)(SamudraPrabha)andoneGeotechnicalVessel(GTV)(SamudraSarvekshak)onnominationbasisunder‘Costplus’arrangement.WhiletheexistingcontractforGTVisvalidupto31.03.2021,thecontractforDSVSamudraPrabhawasvalidtill31.03.2020,subsequenttowhichextensionforoneyeari.e.till31.03.2021,isunderdiscussions.Your Company has also continued the Operation&Maintenancemanagement (O&M) of ONGC ownedWell Stimulation Vessel (WSV)“SamudraNidhi”on‘costplusbasis’sincethevesselsdeliveryinyear1986.Yourcompanyhasbeenawarded6yearslongtermcontractbyONGCforSamudraNidhi,validtill31.03.2023.3 DRDO ProjectDefenceResearch&DevelopmentOrganization(DRDO)hadplaceditsrequirementwithyourcompanyforhiringoftwosupportvesselsforafirmperiodof4yearsplus1yearextensionoption.Accordingly,SCIhadacquiredtwosecondhand/resaleMPSVs,“SCISabarmati”and"SCISaraswati”,customizedtosuitrequirementsofDRDO.ThesevesselsarebeingutilizedtomeetsupportrequirementstowardsDRDO’sstrategic missions of national importance.Further,similartothepreviousyear,duringthecurrentyearalsoIndianNavyhascontinuedtoavailtheservicesofyourcompany’soffshorevessel,‘SCISabarmati’,forconductingSeaAcceptanceTrials(SAT)foritsnewDeepSubmergenceRescueVehicle(DSRV)equipments.Yourcompanyisproudtohavebeenassociated&assistedtheIndianNavyinconductingoftrialsontheWestcoast&EastcoastofIndia.4 Technical Services:4.1 Technical Consultancy ServicesDuringtheyearunderreporttheCompanycontinuedtoprovidetechnicalconsultancyservicestoA&NAdministration,UnionTerritoryofLakshadweepAdministration,GeologicalSurveyofIndia,UnionTerritoryofDamanandDiuAdministration(UTDD)andotherGovernmentDepartmentsfortheirvariousshipacquisitionprojects.Duringtheyearunderreview,yourcompanyalsoprovidedconsultancyservicetoanotherGovernmentorganizationnamelyM/s.SardarSarovarNarmadaNigamLimited (SSNNL) forselectionof integratedoperator forrunningpassengerferryvesselsatStatueofUnitysite,Kevadia,Gujarat.Further,yourcompanyistakingeffortstoaddfewmoreclientsinits technical consultancy portfolio.5 Tonnage Acquisition ProgrammeDuringtheyearunderreport,yourcompanyhadenvisagedacquisitionofsecondhandvesselsinvarioussegmentsviz.,CrudeOilCarriers,ProductCarriers,Containervessels,GasCarriersandOffshorevessels.However,couldnotacquireanyvesselsduring theyeardue toinadequategenerationof fundsandmarketdynamics. Informatively,yourcompanyhasbeencontinuouslyscanningthemarket forrightassetsinthemarketinrelationtotheavailableemploymentopportunitieswithdueconsiderationtotheCashflowpositionofyourcompanyandisoptimisticinacquisitionofvesselsatopportunetime,takingadvantageoflowassetpricestowardsreplacementofscrappedtonnage.6 Eco-Friendly and Conservation of EnergyAsapolicy,yourCompanyremainedcommittedtoenvironmentalprotectionasperInternationalConventionforthePreventionofPollutionfromShips.Necessarystepshavebeentakentominimizeairpollutionandoilpollutionfromships.YourcompanyhassuccessfullycompliedwithIMO's0.5%sulphurfuelregulationwhichcameintoforcefromJanuary2020andallvesselsarebeingsuppliedlowsulphurfueloilsince1stJanuary2020.YourcompanyhasalreadytakennecessarystepstomeetIMO'sfueloildatacollectionsystemdirective,asperIMOdirectivestoreportfuel

DIRECTORS’ REPORT


oilconsumptiondatafrom01stJan’2019.Further,allenginesfittedonboardaremeetingapplicableNOxemissionsrequirements.Fortheexistingvessels,yourcompanyhaddevelopedaShipSpecificEnergyEfficiencyManagementPlan(SEEMP)toimproveandmonitorenergyefficiencyinshipoperations.Usageofeco-friendlyrefrigerants,installationofBallastWaterTreatmentplants,availabilityofInventoryofHazardousMaterialsonmostofitsships,usageofTBTfreepaints,etcaresomeofthemeasuresshowingyourcompany’scommitmenttoEco-friendlypoliciesandconservationofenergy.7 Technology Absorption, Adoption and InnovationTheSCIhastakenallstepstocomplywithrequirementsofTheInternationalMaritimeOrganization’sMARPOLANNEXVIaimedatControllingAirPollutionandsettinglimitsonEmissionstotheAtmospherefromShips.OnthenewvesselsSCIhasvoluntarilyacceptedhigherthanmandatoryrequirementsonemissionstandards.Forthe2Nos.firmand1No.optional2000DomesticLPGCarriersforUTLAdministrationwhichareunderconstructionatM/sGoaShipyardLimited,yourcompanyasthetechnicalconsultanthasrecommendedvariousoptionalfeaturessuchasinstallationofsewagetreatmentplant, double hull protection to fuel oil tanks, etc. which proves your company's commitment to technology absorption.Similarly,for500/1200PassengervesselsunderconstructionforA&NAdministration,yourcompanyhadrecommendedadoptionofcertaintechnologicalup-gradationsforpassengercomfortandoperationalefficiency.YourcompanyhasalsotakeninitiativetoinstallBallastWaterTreatmentPlantsonallthosevesselswhicharenotfittedwiththetreatmentplants. This exercise will be carried out in a phased manner in order to comply with the IMO regulations.8 Situation in Coastal operation and Offshore areasAlthoughONGCisthelargestplayerintheIndianOffshoresectorandistheemployerofthelargestoffshoreassetsinIndia,therehasalsobeenincreaseinoffshoreExplorationandProduction(E&P)activitiesbytheprivateplayers.ThisyearalsosawincreaseintheE&Pactivitiesandconsequentlyfirmingofthecharterhireratesoftheoffshoreassets.TheincreaseinactivitieswasobservedinboththeWestaswellasin the East coast of India.Meantime the advent of the novel corona virus and its rapid spread from mid-March onwards has forced the world into a lockdown situation resulting in temporary halting and deferment of certain offshore activities.9 Measures taken to improve services and operationsYourcompanyhasconsistentlybeentakingmeasurestomaintainitsshipstothehigheststandardsofperformancebyeffectiveandplannedmaintenanceofmachinery/equipmentonboardvesselsandclosemonitoringfromshoreaswell.ThevesselshavebeenfollowingConditionBasedOverhaulingsystemtoensurethattheyremaintechnicallyseaworthyatalltimes.Yourcompanyhasundertakennecessarystepstomodifyandupgradeitsvessels(PSVs)tocomplywiththenewrequirementsofONGCtendersasandwhentheyarerequired.Further,yourcompanyhasalreadyentered into long termratecontractswithOriginalEquipmentManufacturers(OEMs)ofmajorsparesuppliers,soastobenefitfromthediscountedratesandstreamlineun-interruptedsupplytoourvessels10 Awards and Accolades10.1 Rescue operation by offshore vessel "SCI Urja": Inadisplayofcourageandcommitmenttowardsthesociety,SCI’soffshorevessel,‘m.v.SCIUrja’,savedlivesof18fishermendesperatelyawaitingassistancefortheirsurvival.On26.10.2019,‘m.v.SCIUrja’,providedassistancetodistressedtrawler"VaishnoDeviMata",whichwashalffloodedwithseawaterintheArabiansea,astheseveretropicalstorm"KYARR"waspassingbyandallvesselswereexperiencinggaleforcewindandveryhigh/roughseas.‘SCIUrja’towedthedistressedcraftalongwiththefishermentosafelocationoutsidetheoilfieldandhandeditovertoNavalvessel,thussavinglivesofallfishermen.“SCISabarmati” ison longcharterwithDefenceResearch&DevelopmentOrganization (DRDO) forprovidingsupportservices to theirstrategicmissionsofnationalimportance.Duringtheyear,IndianNavyhostedthevisitsofdelegationsoftopexecutivesofBangladeshNavyandIndonesianNavyonboardSCISabarmati.Thedelegationweretakenforadeckroundandon-sitedemoofassociatedequipments.Thedelegations conveyed their appreciations towards the performance of entire ship staff and the upkeep of the vessel.MODU“SagarVijay”hadundergonesuccessful7thIntermediateDockingSurveyatCochinShipyard,Kochiin2019.Thedrydockingofthevesselwascompletedwithinschedule.Theentireperiodofdrydockingandpreviousassignmentsinfieldwitnessedzeroaccident.Asatokenofappreciation,thevesselreceived"SafetyShipAward2019"onbehalfofownersM/sONGC.MODU“SagarBhushan”-ThevesselandcrewreceivedspecialcitationfromM/s.ONGCforsuccessfulendeavourtoholdonthevesselinthemidstofAnchorHandlingoperationswhileseverecycloneengulfedtheareain2019monsoon.ThevalouranddedicationofMasterandthe entire marine crew was appreciated.

DIRECTORS’ REPORT


MODU“SagarVijay”hasbeenawarded“BestMaintenancePracticesAward2019”inMODUcategory.Theeffortsandgoodworkbyshipstaff with continuous supervision from shore has been rewarded.10.2 MAHARAJA AGRASEN in Gulf of Oman On5thAug2019at1120hrsUAEtimemerchantvesselSparCapellatransmittedMayDAYcallonVHFCh16forMANOVERBOARDinpositionLat:2417.5N//Long:05818.20E.ShewasloadedandonherpassagetoSuez.SuezmaxtankerMaharajaAgrasen,(ShippingCorporationof India)was8milesoff fromtheMOBposition.Asmessagewasreceived,decision was taken to proceed for search and rescue operation.VesselstartedproceedingwithfullandsafemaneuveringspeedtowardsMOBpositionwithextralookoutspostedfrombowtoBridgewings.Meantimeother2vesselinthevicinityalsostartedproceedingtowardstheposition.Uponreachingonscene,sectorsearchpatternasperIAMSARVol.3wasdecidedandstarted.TimelapseoftheMOB,currentdirectionanddriftwascalculated.AlsoitwasaskedfromvesselSparCapellathatwhatthecolouroftheclothswhenthesurvivorhadbeenlastsightedonboard.Rescueoperationwasalsosupportedwiththe Oman royal air force helicopter.Search operation was at the limit of its safe operating window with darkness approaching and weather condition hampering the search. After2hoursofsearch,othervesselsandhelicopterleftthescenebutourvesselMaharajaAgrasencontinuedforsearchtillwindowtimeof daylight.After4hoursoftimelapse,bravesoulwassightedinwaterbyourlookoutpostedintheforwardanditwasinformedtothebridge.Justafterafewseconds,personsondeckcouldhearsoundcomingfromseaconfirmingthatbravesoulisaliveandfightingback.Immediately lifeboat of Maharaja Agrasen was prepared and lowered in water. As lifeboat reached near to survivor, he was picked up from waterandtakeninboat.Onceonboard,hisclotheswerechangedandhisparameterswerechecked.After5hrsinwaterfightingbravelyforsurvival, he was found normal and responding to communications.Authoritieswereinformedandwithin10minutesOmanRoyalAirForcehelicoptercametoMaharajaAgrasen.Survivorwasevacuatedtoshore medical care. Material changes and commitments, if any, affecting the financial position of the company, having occurred since the end of the year and till the date of the report:ThenovelCoronaVirus,whichemergedfromChina,startedtospreadfromthebeginningof2020bringingtheentireworldinasynchronizedlockdownandbothadvancedanddevelopingeconomiesaregrapplingwiththeslowdownthathasstemmedfromtheCovid-19.AlthoughtherehasbeennospecificimpactofthepandemiconSCI’soffshorevesselsduringtheyear2019-20,thefutureimpactisnotascertainable.The potential of the pandemic is being examined and remedial measures are being taken for the well-being of the employees and the company.The shore superintendents are continuously monitoring the vessels from home and coordinating with ship staff to operate the vessels with the available limited resources. The vessels have been instructed to use the resources, necessary for operation of vessel, judiciously and optimally to last longer.EffortsarebeingmadetopursuewithkeyE&Pcompanies/chartererstocontinuepresentcharter/contractforearningrevenueinordertomaintainfinancialhealthofthecompanyinthepresentcrisis.TheOffshoreindustryisprimarilyasupportindustrytotheoffshoreoilandgasExplorationandProduction(E&P)sector.ItsfortunesdirectlydependonthatoftheOilandGasIndustry.TheIndianoffshoremarkethadshownsignsofgradualimprovementduringthelastyear,withanupwardtrendinthecharterhirerates.Thecompanywasalsoabletosuccessfullycapitalizeonthegrowingactivitiesbyachievinganannualassetutilization(revenueoperatingdays)ofabout77%.Although there has been improvement in the charter hire rates, the sudden fall of the crude oil prices and at the same time the effects of thecovid-19pandemicwhichhittheglobalmarketsattheendofthefinancialyearcanhaveaslowingeffectintheshort/mid-term.Theoffshore Industry can expect a slight fall in the demand of assets in the short term. Existing contracts may come up for re-negotiations in caseofdefermentofE&Pactivitiesiftherepersistsextendedperiodsoflockdown.10.3 Other DisclosuresKey initiatives with respect to Stakeholder Relationship, Customer Relationship, Environment Sustainability, Health and Safety.• A ‘VendorAwarenessMeet 2019’was organized at ShippingHouse,Mumbai on 10thDecember 2019 to create awareness aboute-tendering,GSTrelatedissuesandCentralizedBillReceivingCell(CBRC)system.ThemeetwaswellattendedbyvendorsfromacrossglobeandwasinteractivewithexchangeofideasformutualgrowthofbothSCIandVendors.

• Yourcompanyhadalsoarrangedanawarenesspresentationforitsemployeesonthe“PublicProcurementPolicy”whichprovidesfor25%procurementoftotalapplicableprocurementfromMSMEvendorsandtimelypaymentwithin45days.

DIRECTORS’ REPORT


• Also,on10thJuly’2019,yourcompanyinco-ordinationwiththeTransparencyInternationalIndia(TII)organizedaworkshoptobringawarenessoftransparencyandintegrityinprocurementpolicieswithintheorganization.TheworkshopwasarrangedattheMaritimeTrainingInstitute(MTI),PowaiandwasattendedbyseniorofficersofSCI.

• As regards health, safety and environment, measures and guidelines framed by P&A and ISM Department are strictly monitoredperiodically.

IV International Safety Management CellTheSCIhasintroducedtheSafetyManagementSystembysettingupadedicatedInternationalSafetyManagement(ISM)Cell,whichhasdeveloped,structuredanddocumentedproceduresincompliancewiththeInternationalManagementCodeforSafeOperationofShipsandforPollutionPrevention(ISMCode),inaccordancewiththeresolutionA.788(9)oftheInternationalMaritimeOrganization(IMO)andSOLAS,ChapterIX.TheSCIhaslaidthefoundationoftheSafetyManagementSystem(SMS)byrecognizingthatthecornerstoneofgoodSafetyManagementis a commitment from the top management, coupled with the competence, attitude and motivation of individuals at all levels, that determines the expectations of a good Safety Management System.TheSCIhascompliedwithallthefunctionalrequirementsoftheISMCode,whichincludestheSafety,OccupationalHealth&EnvironmentProtectionPolicyandDrug&AlcoholPolicy.Asregards,SafetyManagementCertificate(SMC)forSCIfleet,allshipsareputupforperiodical/renewalSMCauditswithintimeframeandrespectiveSMCsareaccordinglyendorsed.TherequirementsofvariousamendmentstoISMCodeandStatutoryregulationsfromIMO/Flagarealsocompliedwith.Towardsaddressingallemergencyrelatedissues,dedicatedcontactnumbersremainmanned24hoursintheoperatingdivisions.Theachievementoftime-boundcertificationswastheresultoftheSCI’sstrengthofprofessionalexperience,planning,training,execution,systematicanalysisandqualityexpertise,whichisanassetforanyworld-classshipoperatororowner.TheSCIisalsoinapositiontoprovidesuchmanagementexpertisetoothernational/internationalshipoperators.SCI’s Drug & Alcohol Policy:-SCIhasimplementednewDrug&AlcoholPolicyprohibitingdrugandalcoholabusebothashoreandafloatforthehealthandwelfareofitsemployees,operationalsafetyandtheenvironmentfrom03rdMay2016.ISPS CellTheSCIhassuccessfullyimplementedtheISPSCodeonallvesselsoninternationalvoyagesandcoastaltradevesselaspertheAdministrationrequirement.SCIiscommittedtothefollowingobjectivestofulfiltherequirementsofitssecuritypolicy:• Securityofitsshipsandtheircrew,passengersandcargo.• SupporttoitsshipsinimplementingandmaintainingtheShipSecurityPlan.Integrated Management System (IMS) SCIisnowincompliancewithIMS(ISO 9001:2015 – Quality Management System, ISO 14001:2015 – Environmental Management System and ISO 45001:2018 – Occupational Health and Safety Management System) on board all vessels and shore establishments. Therequiredcertificationisvalidtill21st December 2021. V PERSONNEL AND ADMINISTRATIONA. FLEET PERSONNEL1. ThereisanacuteshortageofseniorFloatingOfficers,especiallyintheranksofChiefEngineerOfficers.TheFleetPersonnelDepartmentistryingtomitigatetheshortagebyrecruitingofficersondirectcontractandthroughmanningagentsbyofferingmarket-relatedwageswhichhavebeenrevisedsignificantlyintheMainFleetandOffshoreSector.However,theshortagecontinuesduetotaxationissues.

2. Toensureanuninterruptedsupplyofofficers,deckcadets&TMEoncompletionof theirshipboardtrainingandsubsequent to theirobtainingthecertificateofcompetency,arebeingofferedemploymentonthetermsofINSA-MUIAgreement.

3. NUSIExecutiveCommitteegrantedrecognitionandhonourtoShippingCorporationofIndiaasthecompanywhichhasgivengainfulemploymenttothehighestnumberofwomenseafarersontheMerchantShips.TheSCIwasrecognisedontheoccasionofthecelebrationoftheannual"NUSIFounderMohamedEbrahimSerangDay"on9thMay,2020.

4. FleetPersonneldepartmenthasbeenconductingatwo-daysShipboardOrientationWorkshopatMTIforfleetofficerstoenhancethequality of our seafarers and their level of awareness of the continuous evolving shipboard developments. Theworkshop has nowbeenextendedtothreedayswhichalsoincludesBehaviorBasedSafetycourse.SuperintendentsfromISMCell,BNTVettingandFleet

DIRECTORS’ REPORT


PersonnelDepartmentconductedtheworkshop.Workshopisbeingconductedonceineverymonthimprovingonthecontentswitheveryworkshop.Thisinitiativewillhelpustogrowasaknowledge-basedlearningCompany.

5. ComputerBasedAssessment&EvaluationTesthasbeenreviewedandanewsetofquestionsandtestingpatternhasbeenputinplace.TheAssessmentProgramisnowfullyfunctional.AllFloatingOfficers,includingMasters&ChiefEngineerOfficersareputthroughtheAssessment prior posting on vessels.

6. AnappealwasmadetotheemployeesofSCIbothshoreaswellasshipstaffandyourcompany'semployeeshavevoluntarilycontributedoneday'swagestorelieffundsamountingtoRs.108.69lakhstofighttheCovid-19Pandemic.AcontributionofRs.36.97LakhshasalsobeenmadetowardsPM-CARESaspartofitsCorporateSocialResponsibilitysumminguptoRs.145.66Lakhs.TheBoardrecordsitssincereappreciationtothisnoblegesturetoalltheemployeesoftheCorporation.

7. SCIhasintroducedgendersensitizationtoalltheseafarersjoiningthevessel.SpecialbriefingisbeingimpartedtoallwomenjoiningthevesselbynominatingladyofficersoftheCorporation.AspeciallectureonGenderSensitizationwasintroducedinShipboardOrientationWorkshoptobringhomethepointandmakeSeafarersawareoftheGenderEquality.SCIhasalwayssupporteddiversityparticularlywithregardtowomenseafarers.BesidesgivingtrainingtotheWomenTraineeOfficersatdiscountedratesatitstraininginstituteatMTI,allOfficersjoiningthevesselsarealsobeingsensitizedtowardsworkethicswhiledealingwithwomenatworkplaceinlinewithDGScircular.Aspartofourinternalinitiativestopromoteinclusiveworkplaceashoreandon-boardvessels,SCIhasalsostartedcounsellingall women seafarers with respect to Sexual Harassment at work place prior joining a vessel.

8. TheNovelCoronaVirushasspreadbeyond thebordersofWuhan,Chinaandhasnowengulfed thewholeworld.Coronavirushasalready caused many deaths and created panic situation all over the world. Maritime advisory on corona virus received from various organizationshavebeencirculatedtoourfleetvesselsfromtimetotime.Ourtopmostpriorityissafetyofourseafarers.Almostallportshaveimposedrestrictionsintheirjurisdictions.Withlock-downinmanycountriesandbanonairtravel,thecrewchangeisnotpossible.WithlimitationsandasperDGSSOP,thecrewchangeisbeingcarriedoutatseveralIndianports.TherehasbeennolossofrevenuebecauseofthemanningissuesinviewofworldwidepandemicofCovid19.EntirefleetisstillmaintainedCovidfree.

B. MARITIME TRAINING INSTITUTEYourcompany’sMaritimeTrainingInstitute(MTI)atPowaihassuccessfullyobtainedapprovalsandcommencedtwonewcoursesintheyear2019,viz.ProficiencyinSurvivalCraftandRescueBoats(P.S.C.R.B.)andAssessment,ExaminationandCertificationofSeafarers(AECS).Inaddition,MTIhasobtainedapprovalforincreasedfrequencyofBasicSafetyTrainingCourse(from24batchesto48batchesinayear)andSecondMateFunctionscourse(from3batchesto6batchesinayear).Presently,fourbatchesofDiplomainNauticalSciences (DNS) and one batch of Electro Technical Officers (ETO) course at Powai campus are underway. One batch of GraduateMaineEngineering(GME)hasbeensuccessfullycompletedatMTI fromApril2019 tillJan2020.RegularManagementDevelopmentPrograms,TechnicalSeminarsforNon-TechnicalOfficers,Financefornon-financeprofessionals,Guestlectures,seminars,professionaldevelopmentprogramsandskillenhancementprogramsarebeingconductedforallranksofofficers,pettyofficers,ratingsandshoreofficerstoenhancetheircompetenceandbuildasenseofbelonginginthemtowardsthecompany.ShipboardOrientationWorkshopsareconductedonmonthlybasisatSCI-MTItorefreshandenhancecompetenciesandskillsoffloatingpersonnelofthecompany.YourCompany’sTrainingCentre-MaritimeTrainingInstituteatPowai,MumbaihasbeenassignedGRADEA1(Outstanding)ratingbyDNV-GLafter the inspectionasper theComprehensive InspectionProgrammeGuidelinesof theDirectorGeneralofShipping (DGS).The Institutehasdrastically improved in theexternalexaminationsconductedby IndianMaritimeUniversity (IMU)where thepassingpercentagehasgonebeyond90percentinfirstattempt.Company’sTrainingCentreat theMaritimeTraining InstituteatPowai,Mumbaihasconducted412Courses for6917participants inFY2019-20andthetotalman-daysoftrainingduringthisyearare87542.Theseincluded66857man-daysforSCI’spersonneland20685man-daysforpersonnelfromothercompanies.245SCIshorepersonnelwereprovided484man-daysofin-housetrainingatMTI.However,courses(pre-sea,competency,andmodular)weresuspendedsince16.03.2020asperinstructionsfromDGS,IMU,andGovernmentofMaharashtra.Everyendeavour ismade toensure thatour training institute isself-sustaining,which includedManagementDevelopmentProgramsformid-levelandseniorlevelofficers,SoftSkillbasedWorkshopforpostingofficers,financefornon-financeprofessionals.Reservation PolicyAt MTI, we have followed centre's policy of reservation during the cadet admissions and no deserving candidate has been deprived of such opportunity.WehadadmittedtheDNScadetsasperthetablebelow: Intake Batch ST SC OBC GEN Aug2019 52&53 01 15 29 35 Feb2020 54&55 01 04 30 31 Intake Batch ST SC OBC GEN Apr2019 GME-08 00 07 15 18

DIRECTORS’ REPORT


Information towards major achievement during the year under review i.e. FY 2019-20Academic Achievements:A. SCI-MTIhascommencedtwonewcoursesintheyear2019-20:• Proficiency in Survival Craft and Rescue Boats (P.S.C.R.B.)• Assessment, Examinations and Certification of Seafarers (AECS)B. PassPercentageofSCI-MTI forDNSbatchessuccessfully increased to95% inDecember2019 IMUexamination forSemester II incomparisonto82%inJune2018Examination.PassPercentageforDNSstudentsincreasedto92%inDecember2019IMUexaminationsforSemesterIfrom75%inDecember2018examinations.

C. Additionaltutorialclasses,sessions,lecturesandtrainingbeyondacademiahavebeenprovidedtoparticipantsatSCI-MTI,pertainingtoregular academic subjects and others like stress management and yoga.

D. SCI-MTIorganizedthefirsteverbatchofAssessment,ExaminationandCertificationofSeafarers(AECS)courseinIndiaonbehalfofDirectorateGeneralofShipping(DGS).

E. Onthespecialoccasionof70thFoundationDayofDGShippingon03.09.2019,Hon’bleUnionMinisterofState(IndependentCharge)forShippingandUnionMinisterofStateforChemicalandFertilizers,Shri.MansukhLMandaviyainauguratedProficiencyinSurvivalCraftandRescueBoats(PSCRB)courseatSCI-MaritimeTrainingInstitute,Powai,Mumbai.

Non-Academic AchievementsA. SCI-MTIbecameCCTVenabledcampuswith24 x7CCTVsurveillanceof all the administrative and residential buildings, including

security posts throughout the campus. B. SCI-MTIhascontinuedsavingonitselectricitybillsbyapprox.30%onmonthlybasisasitssolarpowergenerationcapacityreachedto0.5MWsinceinaugurationin2018.

C. SCI-MTI isalsoutilizing the in-campusnaturalwaste (leavesetc) tocreatemanureandLake/WellWater forgardeningwork inMTIcampus.

D. SCI-MTIhassignificantlyimproveditstenderingprocessbyfollowingonlinetenderingformajortendersandcontractsatMTI.Proudly,MTIhasreducedtheannualfinancialimplicationsofsomemajortenders/contractsoftheInstitute,includingcateringcontract.

Business Development InitiativesA. SCI-MTIhasaggressivelycommunicatedaboutitspre-seacourses(DNSandGME)tovariousschools,colleges,andcoachinginstitutesforincreasingawarenessofMerchantNavyasacareerandaboutacademicandcareeropportunitieswithSCI-MaritimeTrainingInstitute.

B. Institute’scoursebookingofficecontinuestobeaccessibleevenonHolidays,SaturdaysandSundays(excludingNationalHolidays)forattendingcoursebookingenquiriesandrequests.

OthersA. SCI-MTIhostedtheMaritimeQuizcompetitionunderNationalMaritimeDayCelebration(NMDC)on04.04.2019.B. SCI-MTIhosted theWorldMaritimeDay2019celebrationsorganizedbyTheNationalMaritimeDayCelebrationCommitteeon27thSeptember,2019whereMs.AnnOllestad,ConsulGeneral,RoyalNorwegianConsulategracedtheeventasChiefGuest.

C. Yourinstitutehasstartedonlineclassesforthecourseparticipantsofpre-seaandcompetencycoursestoutilizethelockdownperiodand ensure timely completion of the syllabus prior to their external examinations. Same are being conducted in line with the guidelines of DGSandIMU.

C. SHORE PERSONNEL Material developments in Human Resource / Industrial Relations front, including number of people employedThetotalManpowerason31.03.2020is640(excludingCVOandBoardmembers),outofwhich567areofficersand73arestaffmembers.WithaviewtomeetthepresentandfuturechallengesandbeagloballycompetitiveCorporation,anumberofcapacitydevelopmentinitiativesandemployeeengagementactivitieswerecarriedoutintheyear2019-20.Varioustrainingprogrammes,bothin-houseandexternalhavebeenconductedfor theemployeefordevelopmentof theirskillsetsanddomainknowledge.Training likeFinanceforNon–FinanceandTechnical forNon-Technicalemployeeshavebeenconducted.During the lockdownperiod i.e. fromMarchend2020 toMayend2020variousknowledgesharingsessions,learningsessionswereconductedandStandardOperatingProcedureshavebeenprepared.Reservation PolicyCompanyiscomplyingwithallgovernmentguidelinesasapplicablefromtimetotimeinrespectofreservationpolicysoastoempowertheweaker sections of the society.

DIRECTORS’ REPORT


SC/ST/OBC REPORTAnnualStatementshowingtherepresentationofSCs,STsandOBCsason1stJanuary2020andnumberofappointmentsmadeduringthepreceding calendar year:Report I

Name of the Public Enterprise: The Shipping Corporation of India Ltd.Groups Representation of

SCs/STs/OBCs (As on 1.1.2020)

Number of appointments made during the calendar year 2019

By Direct Recruitment By AbsorptionTotal no. of employees

SCs STs OBCs Total SCs STs OBCs Total SCs STs OBCs

1 2 3 4 5 6 7 8 9 10 11 12 13ExecutivesGroupA 573 114 48 92 4 0 0 0 17 4 1 5

NonExecutivesGroupB 57 17 4 3 0 0 0 0 0 0 0 0

GroupC 17 5 1 0 0 0 0 0 0 0 0 0GroupD 0 0 0 0 0 0 0 0 0 0 0 0

Total (ExecutivesinGrade‘A’plus

Non-executives) 647 136 53 95 4 0 0 0 17 4 1 5

Women RepresentationCompany is committed to the principle of equal employment opportunity and strives to provide employeeswith a work-place free ofdiscrimination.AllHRactivitiesofrecruitment,placement,promotion,transfer,separation,compensationbenefitsandtrainingensureequalopportunitiesforskillenhancementandcareerprogression.Company’seffortsarereflectedintherepresentationofwomenacrossvarioushierarchicalgrades.Atpresentwomenconstitutearound20.54%oftotalworkforceatshoreestablishmentsofyourcompany.CompanyencouragesactiveinvolvementintheactivitiesoftheForumofWomeninPublicSector(WIPS)sinceitsinception.WIPS,APEXundertheaegisofSCOPEhasappreciatedcompany’seffortsbyconferringthe“BestEnterpriseforcontributiontowardsWomen’sUpliftment(1stPrize)”underNavratnaCategory.SCIhasbeenthepioneerinIndiawithregardstorecruitingwomenforjobsonboarditsfleet.Presently,2Masters,5ChiefOfficers,2SecondEngineers,31Second/ThirdOfficers,6Third/FourthEngineersand2Nursesarewomenservingonvarioustypesofships.Otherthanabove,thereare13WomenTraineeNauticalOfficers,4WomanTraineeMarineEngineersand7WomanTraineeElectricalEngineers.Policy to prevent sexual harassment in workplaceCompanypromotesgenderequalityandhasbeentakingproactivemeasurestopreventanySexualHarassmentatworkplace.CompanyhasconstitutedacommitteecomprisingofseniorwomenexecutivesandawomanrepresentativefromtheNGOPrathamtoenquireintocomplaints of Sexual Harassment at the workplace. There were only two complaints which were received related to Sexual Harassment in theyear2019-20,boththecomplaintswereresolvedandclosed.Corporate Social Responsibility (CSR) and Sustainable Development (SD)TheCorporateSocialResponsibilityvisionofyourcompanyarticulatesitsaimtobeacorporatewithitsstrategies,policiesandactionsaligned with wider social concerns, through initiatives in education, public health, women empowerment and other areas of social upliftment. YourcompanyhasframeditsCSRpolicyinlinewiththeguidelinescontainedintheCompaniesAct2013andCompanies(CSRPolicy)Rules,2014notifiedthereinandconstitutedaCSRcommitteeaspertheacttocoordinateandoverseetheimplementationofCSRinitiatives.Thepolicy is available on company’s website www.shipindia.com/csr/csrsubpage/preambleThebudgetavailable forCSRinitiatives in theyear2019-2020,asperapplicableprovisionswasRs.0.88Crores.Against theavailablebudget,yourcompanyallocatedRs.0.97Croresagainstfollowinginitiativesintheyear2019–20:1. Promotion of School Education & Maritime Education – a) SettingupofMiniScienceCentreatgovernmentschoolsofOsmanabad,aspirationaldistrictinMaharashtra.b) SupportforrunningGAPforholisticdevelopmentofunderprivilegedchildrenatRamakrishnaMissionAshram.c) AnnualGrantshavebeenawarded tomeritoriousstudents fromweakersectionof thesociety,viz.SC/ST/BPLcandidates,pursuingOceanEngineering/NavalArchitecture/NauticalScience/GMEcoursesatpremier institutes (IMU’s& IIT’s) toencourageandsupport

DIRECTORS’ REPORT


Maritime Education in the country2. Eradicating Hunger & Malnutrition – SupporttoAkshayaPatraFoundationforprovisionofmid-daymealsto2000schoolchildren.3. Health Care – a) SupporttoCancerpatientsforsurgeriesatBhaktivdantaHospital,MiraRoad,Thane.b) ContributiontoPMCARESFundassupportforCOVID-19.AgainsttheallocationofRs.0.97crores,theentireallocationhasbeenutilised.ThedetailsoftheCSRinitiativesundertakenbytheCompanyduringthefinancialyear2019-20intheprescribedformatareannexedtoDirectorsReportVI. Material Orders of Judicial Bodies / RegulatorsDetailsofsignificantandmaterialorderspassedbyanyRegulator,Court,Tribunal,Statutoryandquasi-judicialbody,impactingthegoingconcernstatusofthecompanyanditsfutureoperations–Nil.VII. Implementation of Official Language PolicyWithaviewtocomplywiththeOfficialLanguagepolicyoftheGovernment,yourcompanyreiterateditscommitmentandmadeconstructiveeffortstopromoteandpopularizetheuseofHindiinitsday-to-dayaffairsduringtheyearunderreport.AspertheAnnualProgrammeissuedbytheMinistryofHomeAffairs,yourCompanyconductedHindiprogrammes/competitionsataregularinterval.HindiUnicodecomputerworkshops were also held every month to impart practical training to the employees in Hindi typing and translation. To encourage reading Hindibooks,aHindiBookReviewCompetitionforemployeeswasalsoconductedduringtheyear.SCIAnnualRajbhashaAwardScheme2019-20wasformulatedandlaunchedinMay2019soastocreateasenseofcompetitionamongstallDivisions/DepartmentsandindividualofficerswithrespecttoenhancingtheuseofHindiinday-to-daycorrespondenceandactivities.TheAwardschemehastwoparts,viz.AnnualRajbhashaShield(atDivisionalLevel)andRajbhashaGauravSamman(atIndividualLevel).TheDivisionsecuringmaximummarksonthebasisofprescribedparameterswillbeawardedthe“AnnualRajbhashaShield”,whereasthecashawardsalongwithcitationof“RajbhashaGauravSamman”willbegivenawaytotheemployeesintop3positionsundertheevaluationprocess.Apart from this, your Company continued to encourage the use of Hindi through email correspondence by way of Quarterly Hindicorrespondence incentive scheme, underwhich the eligible employeeswere rewardedwith cash incentives.DuringHindi Pakhwara inSeptember2019,anappealmadebyCMDwasemailedtoalltheemployeestomaximisetheuseofHindiinofficialwork.Itisamatterofpleasurethatyourcompany'sHeadOfficeinMumbaihasbeendeclaredasSecondprizewinnerinlinguisticregion'B'foritsexcellentperformanceintheimplementationofOfficialLanguageHindiundertheRajbhashaShieldSchemeoftheMinistryofShipping,fortheyear2018-19.ItisworthwhiletomentionherethatyourCompanyhadbeendeclaredasSecondprizewinnerfortheyear2017-18also.BesidesactivelyinvolvedforencouragingHindiactivitiesatcitylevel,yourCompanyalsoattendedTownOfficialLanguageImplementationCommittee(TOLIC)meetingsduringtheyearunderreport.VIII. Procurement of Goods and ServicesYourcompanyentersintoratecontractonperiodicalbasisforprocurementandsupplyofhighvalueandsafetyitemslikeMarineLubes,MarinePaints,Charts,Wireropes,LSA/FFA,LifeRaftsetc,bothatIndianportsandmajorforeignports,likeSingaporeandFujairah.Thisensurestimelysupplyofrightqualitygoods/servicestothevesselsatreasonableprice.Duringthefinancialyear2019-20,yourCompanycontinuestosupporttheMicroandSmallscaleEnterprises(MSEs)byprocuring30.68%ofitsapplicablesuppliesofgoodsandservicesfromMSEsasagainstthesettargetof25%inlinewiththerevisedPublicProcurementPolicy.Further,yourcompanyactivelyparticipatesintheprogramsorganizedbytheMinistrysoastomakeMSEsawareoftheSCI’srequirements.IX. Protection & Indemnity (P&I) InsuranceProtectionandIndemnity(P&I)InsurancecoverenteredwiththreeGroupP&IClubsforyourcompany’sfleetforthepolicyyear2019-20commencingfrom20.02.2019hasbeennegotiatedbyyourCompany.YourCompany,afterprotractednegotiations,wasabletoobtainareductionof1.88%intherenewalpremiumovertheexpiringpremiumresultinginanetreductionofUSD86,416towardsrenewalpremiumforpolicyyear2019-20.Further,yourcompanyisgladtoinformyouthatoneoftheGroupP&IClubshaverefunded10%oftheannualpremiumforthepolicyyear2018-19toyourcompany(andothermembers)inviewoftheirbetterfinancialperformance.

DIRECTORS’ REPORT


X. Appointment and Remuneration Policy:TheappointmentsinyourcompanyaredoneinaccordancewithGovernmentofIndiaguidelines.TheremunerationtotheseniormanagementandothershoreemployeesofyourcompanyisgovernedbythePresidentialDirectivesissuedbytheMinistryofShippingandDepartmentofPublicEnterprises(DPE),fromtimetotime,whichformtheremunerationpolicyofyourcompany.XI. Right to Information Act 2005 (RTI ACT 2005)AsuitablemechanismhasbeenputinplacefordealingwiththerequestsandappealsunderRTIAct2005.TheRTImanualispostedontheCompany’swebsite.YourCompanyhasbeencomplyingwiththeprovisionsoftheActwithinthestipulatedtimelimitprovidedundertheAct.Ason31.03.2020,yourCompanyhasdisposedoffmostoftheapplicationsandappealsreceivedfromtheparties.Fortheyear2019-20,anIndependentAuditorhasbeenappointedtocarryoutonlineTransparencyAuditofSection4whichpertainstoSuo-motodisclosureunderthe RTI Act.XII. SPECIAL PURPOSE VEHICLESethusamudram Corporation Ltd.TheGovernmentofIndiahadconstitutedSethusamudramCorporationLimited(SCL)toraisefinanceandtoundertakeactivitiestofacilitateoperationofanavigablechannelfromGulfofMannartoBayofBengalthroughPalkBay(SethusamudramShipChannelProject).AspertheGovernmentdirective,thisprojectistobefundedbywayofequitycontributionsfromvariousPSUsincludingtheSCI.AsonFY2016-17,SCIhasinvestedRs.50croreintheproject.Worksuspendedsince17.09.2007consequenttoaninterimstaybytheHon'bleSupremeCourtforcarryingoutdredgingoperationsinAdam'sbridgearea.Pendingafinaldecisiononalternativealignment,allthedredgerswerewithdrawnsince27.7.2009.SupremeCourt'sfinalhearingonthematterwasscheduledon06.04.2018,however,thehearingwaswithheldindefinitely.Circularresolutiondated11.03.2019waspassedforseekingadditionalgrantofRs.115.72croresfromtheGovernmenttosettletheduesofDredgingCorporationofIndiaforthedredgingworkscarriedoutinSethusamudramShipChannelProjectandalsoaproposaltoMinistryofShippingforwindingupofSCLalongwithfundposition.TheexposuretowardsSethusamudramhasbeenfullyprovided.XIII. Memorandum of Understanding (MOU) with the Ministry of ShippingTheMOUforthefinancialyear2020-21isunderprogress.TheproposedMOUwhichhasbeenpreparedaspertheguidelinesissuedbytheDepartmentofPublicEnterprise(DPE)fortheyearincorporatesperformancetargetsinsyncwiththechangingdynamicsoftheshippingscenario.ApartfromtheFinancialparameters,Sector-SpecificOperationalParametershavealsobeenincorporatedintheMOUforachievingsustainedoverallgrowthaspertheDPErequirements.InformativelyPreNegotiationCommittee(PNC)Meetingwasheldon19.06.2020ontheproposedMOUforfinancialyear2020-21.SCI'sCompositeScoreforMOU2018-19wasevaluatedbytheDPEat57.38andSCIwasthusgraded"Good"forFY2018-19.TheMOUperformanceevaluationreportforfinancialyear2019-20onthebasisofauditedaccountswillbesubmittedtoDPEafterapprovaloftheBoardandthroughtheAdministrativeMinistryonorbefore30thSeptember2020.XIV. Utilization of FPO ProceedsProceeds from public issues, right issues, preferential issues etc.Duringtheyear2010-11,yourCompanyhadfloateda“FurtherPublicOffer”,(FPO),comprisingofa‘freshissue’of42,345,365equityshares inyourcompanyandan ‘offer forsale’of42,345,365equitysharesby thePresidentof India.TheFPOproceedsofRs.58245lakhswerefullyutilizedinthefinancialyear2011-12asperobjectoftheissueforpartfinancingofcapitalexpenditureonnineshipbuildingprojects.However,duetodelaysintheprojectsresultingindefaultbytheshipyards,duringtheperiodJanuary2014toMay2014,yourCompanyrescindedcontractsforfourshipbuildingprojectsandalso,re-negotiatedthepaymentsfortwoprojects.TheinvestmentintherescindedcontractsoutoftheFPOProceedswasRs.330.65crores.YourCompanyhasreceivedbackentiresumofRs.330.65croresfromtheshipyards.Theshareholdersvidetheresolutionpassedthroughpostalballoton11.02.2017approved theproposal to re-deploy thesaidsumofRs.330.65croresreceivedasrefund fromShipyards,towardsvariousshipbuildingprojectsincludingoffshoreassetsandliquidpetroleumgas(LPG)vesselsandalsoforacquisitionofanyothersuchvessels,onsuchtermsandconditionsastheBoardwoulddeemfitfromtimetotimeasmentionedintheapprovalofthepostalballot.Furtherbasedontheapprovalgrantedbytheshareholders,theCompanycanalsoutilizethesumtowardsthebalancepaymentsremainingdueforthetonnageacquisitionmadebyit.OutofthesaidamountofRs.330.65crs,anamountofRs.196.80crshasbeenutilisedtilldateasunder:

Month & Year Rs. Crs Utilised forNovember2016 34.37 EquityportionofPSV–SCISabarmatiApril2017 63.82 EquityportionofSuezmaxTanker–DeshAbhimanJuly2017 27.63 EquityportionofPSV–SCISaraswatiSeptember2017 70.98 EquityPortionofVLGC–NandaDeviTotal Utilised till date 196.80

DIRECTORS’ REPORT


Theun-utilisedFPOproceedsamountofRs133.85croresarekeptinfixeddeposit.XV. Segment-wise PerformanceReport onperformanceof the variousoperating segmentsof theCompany (audited) is includedatNoteNo.32ofNoteson FinancialStatements(Standalone)fortheyearended31stMarch2020,whichisformingpartoftheAnnualAccounts.XVI. Internal Control System and Their AdequacyTheCompanyhasan internalcontrolsystemthat isadequateandcommensuratewith thesize,scaleandcomplexityof itsoperations.InternalfinancialcontrolsframeworkandRiskControlMatrix(RCM)forvariousbusinessprocessesisinplace.Theinternalcontrolsystems(includingInternalFinancialControlsoverFinancialReporting)arereviewedonanongoingbasisandnecessarychangesarecarriedouttoalignwiththechangingbusiness/statutoryrequirements.InternalauditiscarriedoutbyanindependentfirmofCharteredAccountantsbyM/sAmitray&Co.onconcurrentbasis.Thescopeandauthority of the InternalAudit function is defined in the InternalAuditPlan,which is approvedby theAuditCommittee. Tomaintain itsobjectivityandindependence,theInternalAuditfunctionsubmitsquarterlyreportstotheAuditCommitteeoftheBoard.TheInternalAuditexamine,evaluateandreportontheadequacyandeffectivenessoftheinternalcontrolsystemsintheCompany,itscompliancewiththelaiddownpoliciesandproceduresandensurecompliancewithapplicablelawsandregulations.Basedonthereportofinternalauditfunction,processownersundertakecorrectiveactionintheirrespectiveareasandtherebystrengthenthecontrols.Significantauditobservationsandcorrectiveactionsthereonarereviewed,deliberatedandpresentedtotheAuditCommitteeoftheBoard.XVII. Dividend Distribution PolicyTheDividendDistributionPolicyofSCIseekstorewarditsshareholdersfortheirtrustandinvestmentinCompany’sbusinessobjectives.The declaration and payment of dividendwill be regulated by the Companies Act 2013, the SEBI (LODR) Regulations, 2015. Further,dividenddistributionwillalsoberegulatedtotheextentpossiblewiththeapplicableguidelinesissuedinthisregardbyGovernmentofIndiaThequantumofdividendpaymentswilldependonannualconsolidatedProfits,fundrequirementforcompany’sexpansionplans,presentand anticipated future business environment with special reference to Shipping Industry and various other factors impacting company’s performance.Thedividenddistributionwillalsobesubjectedtorestrictions/conditions,ifany,imposedbylenders,ordersofCourtsand/orstatutorybodies.ThesaidPolicyisavailableatSCI’swebsitei.e;http://shipindia.com/upload/policies/SCI_Dividend_Distribution_Policy1.pdfXVIII. Role of Vigilance Division in SCI Duringtheyearunderreview,theChiefVigilanceOfficercontinuedtoensuretheintegrationandmonitoringofpreventivevigilanceinitiativesin the business process thus striving towards greater transparency and towards improved ethical and corporate governance standards. Vigilance Division undertook activities of preventive and punitive vigilance and also ensured adoption of good and ethical corporategovernance practices. Use of technology in business processes such as e-payments,migration to Supplier RelationshipManagementplatformforprocurements;billtrackingsystem,provisionforonlineregistrationofcomplaintsviatheVigilanceWebpagecontainedintheSCIwebsiteanddisseminationofimportantcirculars/guidelinesonthewebpagehashelpedinachievinggreatertransparencyandeliminatingsystemicweaknesses.VigilanceDivisionhasbeenpropagatingthecultureoflodgingofcomplaintsunderthePublicInterestDisclosureandProtectionofInformers’Resolution(PIDPIResolution)wherebytheidentityofthecomplainantwouldbekeptsecretandhe/shewouldbeprotectedfromvictimization.VigilanceDivisioncontinuedtointeractwithvariousemployeesofSCIaswellasvariousstakeholdersincludingVendors,Contractorsetc.whichhashelpedinunderstandingtheissuesfromtheirperspectiveaswell.Activities of the Vigilance Division carried out in 2019-20During the year under review, the Vigilance Division continued the activities encompassing the 3 Ps of Vigilance:- •PreventiveVigilance•PunitiveVigilance•ParticipativeVigilance.Theimportantactivitiesthatwerecarriedoutin2019-20bytheVigilanceDivisionwereasfollows:-A) Investigationsintocomplaintsofcorruption/malpracticewereconductedB) RandomscrutinyofAnnualPropertyReturns(APRs)C) ActivemonitoringoftheimplementationofIntegrityPactinSCID) Actedasacatalyst in the implementationofpreventive vigilancemeasuresbyyourManagementsuchase-payments,bill tracking

systems, phased transfers of employees posted in sensitive areas etc. E) Conducting surprise and periodic inspections, CTE type inspections, conducting Systems Studies and recommending systemic

improvements. F) SelectivescrutinyofVoyageRepairsBills,dry-dockingbills,variousaccountsG) TrainingofOfficersonvigilancerelatedsubjectsaswellasCDARules.

DIRECTORS’ REPORT


H) The CVO, SCI and officials of Vigilance Division have developed a special vigilance related trainingmodulewhich forms a part ofManagement Development Programme for various levels of executives to enhance effective and efficient managerial efficiency ofparticipantsforbetterworkingcultureofSCI.Throughthismoduleparticipantsaremadeawareoftheruleswhichenhancesthelevelsof participative and preventive vigilance and helps improve governance standards in the organisation.

I) TheCVOandtwoofficersofVigilanceDivisionareengagedasguest faculty for impartingtrainingduringthevariousprogrammes/coursesconductedinMTI,Powai.

J) AcompilationofvariouspreventivevigilancemeasuresadvisedbyVigilanceDivisionwaspublishedasabooklet“InitiativesofPreventiveVigilanceinSCI”duringVigilanceAwarenessWeek2019.

K) FortheannualVigilanceAwarenessProgramme,apartfromin-houseprogrammesmajoremphasis was placed on reaching out toyouththroughvariousprogrammesinschoolsandcollegesasdesiredbytheCentralVigilanceCommission.

L) VigilanceAwarenesswasspreadtothepublicviaaninteractionoftheChiefVigilanceOfficer,SCIonAIRFMRainbowduringVigilanceAwarenessWeek-2019.

M)AwarenesscampaignonboardSCIships:InordertospreadtheawarenessaboutVigilanceamongstseafarers,theIntegritypledgewasadministered on board the ships and banners were displayed.

Duringtheperiodunderreview,theVigilanceDivisionhadexamined39complaints(i.e.2complaintsB/Ffrompreviousyear+37newcomplaintsreceivedduringtheperiod).Of these15complaintsweredisposed,19complaintswereforwardedtootherdivisionsfornecessary action leaving 5 balance complaints for complete disposal.

Vigilance Study Circle Mumbai Chapter TheVigilanceStudyCircleMumbaiChapter,startedon the initiativeofSCIVigilanceDivision in2010, is todaya forumof33memberorganizationsfromvariedsectors.TheCVO,SCIholdstheofficeofPresidentinVSC-Mumbai.ItcontinuestospreadVigilanceawarenessanddeveloptheknowledgeandskillsofVigilanceProfessionalsandprovidesanidealplatformfortheChiefVigilanceOfficersofMumbaibasedPSUs,Banksetc.tomeetandexchangetheirviews/experiences,etc.Takingforwardthecontinuallearningandknowledgesharinginitiative,followingworkshops/trainingsessionswereorganizedbytheVSC-Mumbaichapterin2019–20:1. WorkshoponfilingQuarterly/AnnualReporttoCVConApril05,2019conductedbyJVinodKumar,Director,CVC.Around70participantsandCVOsfromthememberorganizationsattendedthepresentation.

2. Workshopon“AmendmentsinPCAct,LodgingofFIRandrelatedissues,implicationsoflatestorderonLookoutCircular,CoordinationwithCBIinfraudcases,FilingofFIRinfraudcases”wasorganizedbyVSC–MumbaionApril23,2019.ThesessionswereconductedbyseniorofficialsfromCBIandbanks.

3. ATrainingon"MasterclassforDirectors"forCVOsofVSC-MumbaiwasconductedbyInstituteofDirectors(IOD)MumbaifromSeptember18to20,2019.

4. A‘Walkathon’involvingmorethan700personnelwasorganizedbyVSC–MumbaiduringVigilanceAwarenessWeek–2019tocreatemore awareness on vigilance related activities.

5. Aonedaytraining/workshopontopic–“CasestudiesonCyberFrauds”wasconductedbyanForensic&IntegrityexpertfromE&YIndiaonDecember19,2019fortheCVOsofVSC-Mumbai.

6. Aonedaytrainingon“Overview&RegulationofSecuritiesMarketandCorporateGovernance”,wasorganisedbyVSC-Mumbai incollaborationwithSEBIatNationalInstituteofSecuritiesMarket(NISM)onMarch13,2020.

Integrity Pact in the Shipping Corporation of India Ltd. SCIhadsignedaMemorandumofUnderstanding(MoU)withTransparencyInternationalIndiafortheadoptionofIntegrityPact.BysigningtheMoU,yourCompany iscommitted tohavemostethicalandcorruption freebusinessdealingswith thecounterpartieswhether theyarebidders,contractorsorsuppliers.The‘thresholdvalue’forimplementationofIntegrityPactindomesticgoodsandservicecontractsisRs.1crore.Thus,anygoods/servicescontractofRs.1croreandabovewillincorporatetheIntegrityPacttherebyassuringtheconcernedpartiesofthetransparentandethicalpracticesinSCI.Duringtheyearunderreview,theIntegrityPactwasmonitoredbyapanelof2eminentIndependent External Monitors (IEMs). Meetings were held periodically with the IEMs to review the progress of implementation of Integrity PactinSCI.XIX. Cautionary StatementThestatementsmade in theManagementDiscussionandAnalysis reportdescribingCompany’sobjectives,projections,estimatesandexpectations may be “forward-looking statements” within the meaning of applicable laws and regulations. Actual results might differ

DIRECTORS’ REPORT


materially from those expressed or implied.XX. Directors and Key Managerial Personnel UponcompletionoftenureofCapt.AnoopKumarSharma,Smt.HKJoshitookadditionalchargeasChairpersonandManagingDirectorofSCIw.e.f12.09.2019apartfromherregularpositionofDirector(Finance).Thereafter,w.e.f.19thDecember2019shewasappointedbytheGovernmentofIndiaastheChairperson&ManagingDirector,SCIapartfromholdingadditionalchargeofDirector(Finance).UponcompletionoftenureofShriShrikant.VKheron30.09.2019,SmtHKJoshialsoassumedtheadditionalchargeofthepostofDirector(BulkCarrier&Tanker)w.e.f 01.10.2019.ShriAtulUbalewasappointedasDirector (B&T)on theBoardofSCIw.e.f 05.12.2019.ShriPramodKumarPandawasappointedasNon-OfficialPartTime(Independent)DirectorontheBoardofSCIwitheffectfrom18.10.2019.ShriShambhuSinghceasedtobetheDirectorontheBoardofSCIw.e.f28.01.2020oncompletionofhistenure.ShriSanjayKumar,AS&FAwasappointedasnon-officialParttimeDirectorontheBoardofSCIw.e.f29.01.2020viceShriShambhuSingh.ShriArunBalakrishnancompletedhistenureasIndependentDirectorandceasedtobeontheBoardofSCI,w.e.f20.03.2020.Smt.SangeetaSharma,retiresbyrotationandbeingeligibleoffersherselfforre-appointmentintheensuingAGMincompliancewiththeprovisionsoftheCompaniesAct2013andArticlesofAssociationoftheCompanyTheBoardplacesonrecorditssincereappreciationforthevaluableservicesrenderedbyCapt.AnoopKumarSharma,ShriShrikantVKher,ShriShambhuSinghandShriArunBalakrishnanasDirectorsduringtheirtenureintheCorporation.AsondateSmt.H.K.Joshi,CMD&CEOandalsoholdingAddl.chargeofDirector(Finance),ShriLawrenceSerrao,CFOandShriDipankarHaldar,CompanySecretaryaretheKeyManagerialPersonneloftheCompany.XXI. Declaration of IndependenceThe Company has received Declaration from Independent Directors conforming that theymeet the criteria of Independence and havecompliedwiththeCodeforIndependentDirectorsasprescribedunderCompaniesAct2013,theSEBI(ListingObligationsandDisclosureRequirements),Regulations2015andDPEguidelines.XXII. Composition and Meeting of the Board and its CommitteeTheBoardand its variousCommitteesareconstituted in termsof requirementsof theCompaniesAct,2013 readwith the rulesmadethereunderandSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.ThedetailsinrespectofthenumberofBoardandCommitteemeetingsofyourCompanyaresetoutintheCorporateGovernanceReport,which forms part of the Annual Report.XXIII. Performance Evaluation of Board, Committee and DirectorsInaccordancewithapplicableprovisionsoftheCompaniesActandSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,theevaluationoftheBoardasawhole,CommitteesandalltheDirectorswasconducted,aspertheinternallydesignedevaluationprocessapprovedbytheBoard.XXIV. Secretarial StandardTheCompanycompliedwithalltheapplicableSecretarialStandards.XXV. Auditors Report TheStatutoryAuditorshavegivenanunqualifiedreportontheFinancialStatementsoftheCompanyfortheFinancialYear2019-20.Further,therearenocommentsmadebyComptrollerandAuditorGeneralofIndiaontheStandaloneandConsolidatedFinancialStatementsfortheyearended31stMarch2020.TheManagement’sreplytotheStatutoryAuditorsobservationonInternalFinancialControlundersection143(3)(i)oftheCompaniesAct,2013isgivenbelow;Statutory Auditors Observationsa) SystemforMonitoringandClearingofVendorAccounts(IncludingAgentPrefunding)shouldbedoneontimelybasis.Management Reply a) Thecompanyhas formedaCentralizedTeamand implementedanend toendprocess towardsmonitoringof theVendorPayables,including the branch offices. Such team follows up from respective departments /regional offices thus accelerating the process ofclearingtheVendoraccounts.EffortsarealsomadebytherespectivedivisionstoexpeditetheapprovalsofFDAs.

Duringthefinancialyear2019-20,therehasnotbeenanyfraudreportedbytheStatutoryAuditorsoftheCompany.XXVII. Secretarial AuditPursuanttoSection204oftheCompaniesAct,2013andtheCompanies(AppointmentandRemunerationofManagerialpersonnel)Rules,

DIRECTORS’ REPORT


2014,theBoardhadappointedMr.UpendraCShukla,PracticingCompanySecretarytoconductSecretarialAudit fortheFinancialYears2017-2018and2018-19.SCIcouldnotcompletetheprocessforappointmentofnewPCSfortheFinancialYear2019-20.Therefore,thetermofcontractofexistingPCShasbeenextendedonthesameterms&conditionsbyinvokingenablingclauseoftheearlieragreementforaperiodofsixmonthending30thSeptember,2020toconductsecretarialauditforthefinancialyear2019-20.TheSecretarialAuditreportforthefinancialyear2019-20isappendedtotheDirectors’Report.TheSecretarialAuditorinhisreportfortheyearended31stMarch,2020has brought out that: TheCorporationhascompliedwiththerequirementsofCorporateGovernanceasprovidedunderRegulation17oftheSEBI(ListingObligationsandDisclosureRequirements) Regulations, 2015 andDPEGuidelines onCorporateGovernance,with the exception of appointment ofIndependentDirectorstotheextentof50%ofthetotalstrengthoftheBoardduringtheperiodfrom1stApril,2019to30thSeptember,2019andfrom20thMarch,2020onwards.ItisclarifiedbytheCorporationthatthematterisbeingpursuedwiththeAdministrativeMinistryforappointingrequirednumberofIndependentDirectorsontheBoardwithintheperiodprescribedunderSection149oftheCompaniesAct,2013andRegulation25(6)oftheSEBI(LODR)Regulations,2015.The Management views on the above observation are as follows:Asondate,theBoardofSCIincludesthefollowingsixIndependentDirectors:DrGautamSinha,ShriRajKishoreTewari,DrP.Kanagasabapathi,ShriVijayTulsiramjiJadhao,CAMavjibhaiBSorathiaandShriPramodPanda.SCIisfollowingupwithTheMinistryofShippingforappointmentofrequirednumberofIndependentDirectors.XXVII. Corporate GovernanceAreportonCorporateGovernancePursuanttotheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015isattachedtothis Report.XXVIII. Business Responsibility ReportYourCompanyhasbeenconductingbusinessfromanEnvironment,SocialandGovernanceperspectivethatnotonlydeliverslongtermshareholdervaluebutalsobenefitsthesociety.TheBusinessResponsibilityReportasperRegulation34oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015isannexedandformsanintegralpartofthisAnnualReport.XXIX. Directors’ Responsibility StatementPursuanttotherequirementunderSection134(5)oftheCompaniesAct,2013,withrespecttoDirectors’ResponsibilityStatement, it isherebyconfirmed:(a) That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation

relating to material departures;(b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable andprudentsoastogiveatrueandfairviewofthestateofaffairsofthecompanyattheendofthefinancialyearandoftheprofitandloss of the company for that period;

(c)thedirectorshadtakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsof this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(d) the directors had prepared the annual accounts on a going concern basis; and(e)thedirectors,hadlaiddowninternalfinancialcontrolstobefollowedbythecompanyandthatsuchinternalfinancialcontrolsareadequate

and were operating effectively. Explanation-Forthepurposesofthisclause,theterm“internalfinancialcontrols”meansthepoliciesandproceduresadoptedbythecompanyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetocompany’spolicies,thesafeguardingofits assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparationofreliablefinancialinformation;

(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequateandoperatingeffectively.

XXX. AcknowledgementsYourDirectorsextend theirgratitude toHonourableMinisterofState forShippingShriMansukhlalMandaviya (Independentcharge)andMinisterofStateforChemicalsandFertilizers,andlookforwardtohissupportandguidanceinmanagingtheaffairsoftheCompany.YourDirectorsalsoextendtheirgratitudetoerstwhileSecretaryShipping,ShriGopalKrishnaandDr.SanjeevRanjan,currentSecretary(Shipping)Ministry of Shipping for guidance.YourDirectorsalsowishtoexpresstheirthankstotheofficialsintheMinistryofShippingfortheunstintedsupportgivenbytheminvarious

DIRECTORS’ REPORT


mattersconcerningtheCompany.YourDirectorswouldalsoliketoconveytheirthankstootherMinistries,TradeOrganizations,andShippers’Councils,whohaveplayedavitalroleinthecontinuedsuccessofyourCompany.TheDirectorsthanktheshareholders,otherstakeholdersandvaluedcustomersforthecontinuedpatronageextendedbythemtoyourCompany.Lastbutnottheleast,yourDirectorswishtorecordtheirdeepappreciationforthededicatedandloyalserviceofyourCompany’semployees,bothafloatandashore,withoutwhoseco-operationandeffortstheachievementsmadebyyourCompanywouldnothavebeenpossible.

ForandonbehalfoftheBoardofDirectorsPlace : Mumbai Mrs H.K. JoshiDated: 7th August, 2020 Chairperson&ManagingDirector&Director(Finance)Addl.charge

DIRECTORS’ REPORT


REPORT ON CORPORATE SOCIAL RESPONSIBILITY 2019-20

1 A brief outline of the company’s CSR policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programs.

The Corporate Social Responsibility vision of the company articu-lates its aim to be a corporate with its strategies, policies and actions aligned with wider social concerns, through initiatives in education, public health,women empowerment and other areas of social uplift-ment.ThethrustofSCICSRinitiativesin2019-2020wereinthefol-lowing broad areas :1)PromotionofSchoolEducation&MaritimeEducation2)EradicatingHunger&Malnutrition3)HealthCareWeblinkhttp://www.shipindia.com/csr/csrpage/overview

2 The Composition of the CSR Committee In accordancewith the provisionsof theCompaniesAct 2013andCompanies (CSR Policy) Rules 2014, SCI has constituted twoCommittees for theeffective implementationof itsCorporateSocialResponsibilityPolicy.Theyconsistof:Tier I Committee:C&MD(Chairpersonofthecommittee)TwoIndependentDirector'sDirector(P&A)-Exofficiomember&ConvenerofthecommitteeOneFunctionalDirector-MemberTier II Committee:GM(P&A)–ExofficioNodalOfficerDGM(P-CSR)-Exofficiomember2OfficialsfromPersonnel&AdministrationDivision.

3 Average net profit of the company for last three financial years.

`43.77Crores

4 Prescribed CSR Expenditure (two per cent of the amount as in item 3 above)

`0.88crores

5 Details of CSR spent during the financial year (a)Totalamounttobespentforthefinancialyear:Rs.0.88Crores(b)Totalamountspentforthefinancialyear:Rs.0.88croresofCSRallocation of FY 2019-2020, an unspent amount of Rs. 9.55 lakhs(Rs.2.68LakhsfromCSRallocationofFY2017-18+Rs.6.87LakhsfromCSRallocationofFY2018-19)C/FfromthepreviousyearstotheCSRBudgetofFY2019-2020,thusincreasingtheCSRallocationforyeartoRs.97.55lakhswhichwasallocatedforundertakenbelowmentioned6projects.(c)Amoutunspent,ifany:Nil(d)Manner in which the amount spent during the financial year isdetailed below:


REPORT ON CORPORATE SOCIAL RESPONSIBILITY 2019-20

"CSR Projects or activity Identified"

Sector in which the Project is covered

"Projects or programs

(1) Local Area or other

(2) Specify State and district

where projects or programs was

undertaken "

"Amount Outlay

(budget) Project or

Program wise"

"Amount Spent on the project or Programs Sub-heads: (i) Direct

Expenditure on projects or

programs (ii) Overheads:"

Cumulative Expenditure

upto reporting period

Amount Spent : Direct or through

Implementing Agency

Setting up of Mini Science Centreatgovernmentschools

School Education

Osmanabad (aspirational

district)1,529,100.00 1,529,100.00 1,529,100.00

Seva Sahayog Foundation

SupportforrunningGAPfor holistic development of underprivileged children at Ramakrishna Mission Asharam

School Education

"Sargachhi,Murshidabad, WestBengal"

691,000.00 691,000.00 691,000.00Ramakrishna

Mission

SCICSRAnnualGrantstoSC/ST/BPLstudentspursuingOceanEngineering/NavalArchitecture/NauticalScience/MarineEngineering courses at premier institutes of the country.

Education

"Chennai/Mumbai/Vizag/ Kolkata/ Kharagpur"

4,400,000.00 4,400,000.00 4,400,000.00 IIT's/IMU's

ProvisionforMidDayMealfor2000schoolchildren

Eradicating Hunger&

Malnutrition Gujrat/UP 2,200,000.00 2,200,000.00 2,200,000.00

AkshayaPatraFoundation

SupporttoCancerpatientsforsurgeriesatBhaktivedantaHospital

HealthcareThane,

Maharashtra860,081.00 860,081.00 860,081.00

SriChaitanyaSewa Trust

ContributiontoPMCARESFundNationalFund/

HealthcareNA 750,00.00 750,00.00 750,00.00 Direct

Total 9,755,181.00 9,755,181.00 9,755,181.00

6. In case the company has failed to spend the two per cent of the average net profit of the last three financial years or any part thereof, the reasons for not spending the amount: NA

7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the company.TheCSRSubCommitteeoftheBoardhasapprovedtheallocationofCSRfundforthevariousprojectsundertakenduringtheyear2019-20whichareincompliancewiththeobjectivesandCSRPolicyoftheCompany.

Sd/- Sd/-

(ChiefExecutiveOfficeror ManagingDirectororDirector)

(ChairpersonCSRCommittee)(Personspecifiedunderclause(d)ofsub-section(1)ofsection380oftheAct)


TheDirectorspresenttheBusinessResponsibilityReportoftheCompanyfortheFinancialYearendedon31stMarch2020,pursuanttoRegulation34(2)(f)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.Section A: General Information about the Company

1. Corporate Identity Number (CIN) L63030MH1950GOI008033

2. Name of the Company TheShippingCorporationofIndiaLimited

3. Registered address ‘ShippingHouse’,245,MadameCamaRoad,Mumbai-400021.

4. Website www.shipindia.com

5. E-mail id [email protected]

6. Financial Year Reported 2019-20

7. Sector(s) that the Company is engaged in (industrial activity code-wise)

50120

8. List three key products/services that the Company manufactures/provides (as in Balance Sheet)

1.DryBulkTransportationServices2.CrudeOil&POLTransportation3.ContainerTransportationServices4.OffshoreServices.5. Marine Technical Services

9. Total number of locations where business activity is undertaken by the Companyi. Number of International Locations (Provide details of major 5)ii. Number of National Locations

I. Internationala) London

II. Nationala)Mumbaib) Kolkatac)Chennaid) NewDelhie) PortBlair

10. Markets served by the Company – Local/ State/ National/International

National/International

Section B: Financial Details of the Company

1. Paid up Capital (INR) : `46,580lakhs2. Total Turnover (INR) : `4,66,839Lakhs3. Total profit after taxes (INR) : `30,235Lakhs4. Total Spending on Corporate Social Responsibility (CSR) as

percentage of profit after tax (%) :`88lakhs(Tobereadw.r.t.note26(b)oftheaccountsoftheCompany)

5. List of activities in which expenditure in 4 above has been incurred:

InaccordancewiththescheduleVIIoftheCompaniesAct,2013theareasofCSRinitiativesforFY2019-20areasfollows:a. PromotionofSchoolEducation&MaritimeEducationb. EradicatingHunger&Malnutritionc. PromotionofPreventiveHealthCare

Section C: Other Details

1. Does the Company have any Subsidiary Company/ Companies? Yes-M/sInland&CoastalShippingLtd(awhollyownedsubsidi-ary)

2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s)

Ason31.03.2020,thecompanywasnotoperational.

3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR initiatives of the Company? If yes, then indicate the percent-age of such entity/entities? [Less than 30%, 30-60%, More than 60%]

NA

BUSINESS RESPONSIBILITY REPORT FOR THE YEAR ENDED 31ST MARCH, 2020


Section D: BR Information1. Details of Director/Directors responsible for BR

a) DetailsoftheDirector/DirectorsresponsibleforimplementationoftheBRpolicy/policiesl DIN : 08116127l Name : ShriSPSJaggil Designation : Director(P&A)

b) DetailsoftheBRheadS.No. Particulars Details1. DINNumber(ifapplicable) NA2. Name MsSashikalaCharles/Dr.SomaTandon(w.e.f01.04.2020)3. Designation GM(P&A)/DGM(P)4. Telephone number 022-22772652/022-227726255. e-mail id [email protected]/[email protected]

2 . Principle-wise SCI BR Policy based on NVGs issued by MCA (Reply in Y/N) (a) Details of compliance (Reply in Y/N)

S.No. Questions P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9

1. Do you have a policy for all the principles? YES

2. Has the policy being formulated in consultation with the relevant stakeholders? YES

3. Does the policy conform to any national/international standards? If yes, specify? (50 words)

SCIBRPolicyisbasedonSEBIguidelinesandprinciplesofUNGlobalCompact,TransparencyInternationalISO9001:2015,ISO14001:2015&BSOHSAS18001:2007Standards.

4. Has the policy being approved by the Board? If yes, has it been signed by MD/owner/CEO/appropriate Board Director? YES,thepolicyissignedbyC&MD.

5. Does the company have a specified committee of the Board/ Director/Official to oversee the implementation of the policy? YES

6. Indicate the link for the policy to be viewed online http://www.shipindia.com>>Interface>>Investor>>Dis-closureunderListingRegulation>>BRRPolicy.

7. Has the policy been formally communicated to all relevant internal and external stakeholders?

ThePolicyhasbeendisplayedonSCIwebsitewhichcanbeaccessed by all the stakeholders.

8. Does the company have in-house structure to implement the policy/policies? YES

9. Does the Company have a grievance redressal mechanism related to the policy/policies to address stakeholders’ grievances related to the policy/policies?

YES.TheStakeholderRelationshipCommitteeisfunctionalaspertheSEBI(LODR)Regulation,2015.

10. Has the company carried out independent audit/evaluation of the working of this policy by an internal or external agency?

NO.SCIhasstartedimplementingthestructuralrequirementtoaddressissuesofBRR.TheprocessisstillundernascentstageinsomeareasanditisnotnecessaryforSCItoconductanauditatthisstage.Oncetheprocessemergescompletely,SCIManagement will take necessary decision for audit. ThepolicyextendstotheJVs,subsidiaries,suppliers,contrac-torstotheextenttheyaredealingwithSCI.



(b) If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)

S.No. Questions P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 91. The company has not understood the Principles

NotApplicable

2. The company is not at a stage where it finds itself in a position to formulate and implement the policies on specified principles

3. The company does not have financial or manpower resources available for the task

4. It is planned to be done within next 6 months5. It is planned to be done within the next 1 year6. Any other reason (please specify)

3. Governance related to BR1. Indicate the frequency with which the Board of

Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year.

Annually

2. Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published?

YES,TheBRisapartofAnnualReportpublishedeveryyear.Thepolicy is also available for viewing on the website of the company. The path is as follows:http://www.shipindia.com>>Interface>>Investor>>DisclosureunderListingRegulation>>BRRPolicy.

Section E: Principle-wise performance

Principle 11. Doesthepolicyrelatingtoethics,briberyandcorruptioncoveronlythecompany?Yes/No. No.Itcoversallthestakeholdersincludingcompany’semployees&Directors.

DoesitextendtotheGroup/JointVentures/Suppliers/Contractors/NGOs/Others? ThepolicyextendstotheJointVentures,Subsidiaries,suppliers,contractorsetc.,totheextenttheyaredealingwithSCI.

2. Howmanystakeholdercomplaintshavebeenreceivedinthepastfinancialyearandwhatpercentagewassatisfactorilyresolvedbythemanagement?Ifso,providedetailsthereof,inabout50wordsorso. Detailsw.r.t.Stakeholders’Grievancesreceived,pendingandredressedduringtheyearareasfollows:

Sr No

Particulars No. of Investor Complaints

No. of Customer Complaints

No. of Employee Complaints

No. of Other Complaints

1 Complaintspendingatbeginningofyear01.04.2019 0 0 1 7

2 Complaintsreceivedduringtheyear 3 0 13 50

1st Qtr 1 0 3 6

2nd Qtr 1 0 1 10

3rd Qtr 0 0 5 18

4th Qtr 1 0 4 16

3 Complaintsdisposedofduringtheyear 3 0 6 47

4 Complaintsremainingunresolvedattheendoftheyear31.03.2020

0 0 8 10

Principle 21. Listupto3ofyourproductsorserviceswhosedesignhasincorporatedsocialorenvironmentalconcerns,risksand/oropportunities. The company has adopted latest technologies on its ships to improve environmental sustainability by:



i. ReducingNOx&SOxemissionsfromitsshipstoimproveairquality&reducecarbonfootprint.CompanyhassuccessfullycompliedwithIMO's0.5%sulphurfuelregulationwhichcameintoforcefromJanuary2020andallvesselsarebeingsuppliedlowsulphurfueloilsince1stJanuary2020.

ii. Useoftinfreepaintsontheship’shulltosustainmarineecosystems.iii. Prohibitionondischargeofoil,solidwaste&sewageetc.fromitsships.iv. Useofsolarpower&LEDlighting.v. RefrigerantusedinACplantsonboardshipsisenvironmentfriendlyasasafeguardagainstOzonelayerdepletion.vi. MostofourvesselscomplyGreenPassportorequivalentnotationwhichrequiresinventoryofhazardousmaterialstobemaintained

onboardandstatementofcomplianceissuedbyrecognisedorganizationforsame,whichwillbeusefulwhilerecycling/handlingofhazardousmaterials.

vii. BallastWaterTreatmentPlantsarebeinginstalledonvesselsinaphasedmannerinordertocomplywiththeIMOregulations.viii. VesselshaveShipEnergyEfficiencyManagementPlan (SEEMP)onboardwhich reduceSox&C02emissionbyminimizing fuel

consumption.ix. Slow steaming of vessel is done whenever possible, thereby reducing fuel consumption and related emissions.

2. Foreachsuchproduct,providethefollowingdetails inrespectofresourceuse(energy,water,rawmaterialetc.)perunitofproduct(optional):I. Reductionduringsourcing/production/distributionachievedsincethepreviousyearthroughoutthevaluechain. Anincreaseinsavingoffuelconsumptionbyabout1%bycleaningofvesselshullregularly–conservationofnaturalresources. ReductionofonboardGarbageGenerationby2%frompreviousyear–conservationofnaturalresources Reductionofsludgegenerationonboardby1%of fuelconsumptiononboard frompreviousyear–conservationofnatural

resources.II. Reductionduringusagebyconsumers(energy,water)hasbeenachievedsincethepreviousyear? NIL.

3. Doesthecompanyhaveproceduresinplaceforsustainablesourcing(includingtransportation)?I. Ifyes,whatpercentageofyourinputswassourcedsustainably?Also,providedetailsthereof,inabout50wordsorso. Yes. Thecompanysourcesthebunkerfuelforitsshipswhichhaslessthan0.1%ofsulphurcontentforECAareasandnotmore

than0.5%forotherareas,aspertheprevailingIMOregulationseffectivefrom01.01.2020.4. Hasthecompanytakenanystepstoprocuregoodsandservicesfromlocal&smallproducers,includingcommunitiessurroundingtheir

placeofwork? Ifyes,whatstepshavebeentakentoimprovetheircapacityandcapabilityoflocalandsmallvendors? SCIcontinuestosupportMSMEsinareasofsupplies&serviceswheresuchMSMEvendorsarepresent,thusimplementingthe

PublicProcurementPolicyofGovt.ofIndiaandencourageMakeinIndia.Duringthefinancialyear2019-20,theprocurementfromMSMEvendors isabout30.68%,complying theD.O. letterNo.19(07)/2018-SMEdated04.01.2019fromtheMicro,SmallandMediumEnterprisesandalsofromtheDepartmentofPublicEnterprisesvidetheirOMdated08.01.2019.

SCIparticipatesinvariousworkshops/seminarsarrangedforthebenefitofMSMEvendorstomakethemawareofSCI’srequirements. Procurementof goodsandservices is carriedout from the local empanelledworkshopsall around India.Parties are selected

through tenderingprocedure.Supplyofstoresand repairsonboardship isdone through localvendors/workshopsonVesselscalling Indian ports.

Ensuringminimumlocalcontentforshipbuilding/shiprepairitemsasperMoSnotificationSY-24015/2/2018-SBR(332405)dated31.8.2018andrecommendingforincreaseinminimumpercentageoflocalcontentforexistingitems.Alsofurtherrecommendingadditionoffewotheritemsinthelistforwhichenoughlocalmarket/manufacturersexistinordertosupportthe‘MakeinIndia’initiativeoftheGovernment

5. Doesthecompanyhaveamechanismtorecycleproductsandwaste?Ifyeswhatisthepercentageofrecyclingofproductsandwaste(separatelyas<5%,5-10%,>10%).Also,providedetailsthereof,inabout50wordsorso. Old/expiredbatteriesandpyrotechnicsarehandedovertoauthorizedvendorsforsafedisposal/recycling.Eventhesludgeremaining

onshipshasbeendisposedthroughPortAuthoritiesforrecycling/recrystalizing.Principle 31. PleaseindicatetheTotalnumberofemployees



646ason31.03.20202. PleaseindicatetheTotalnumberofemployeeshiredontemporary/contractual/casualbasis 21ason31.03.2020

3. PleaseindicatetheNumberofpermanentwomenemployees 135ason31.03.2020

4. PleaseindicatetheNumberofpermanentemployeeswithdisabilities 10ason31.03.2020

5. Doyouhaveanemployeeassociationthatisrecognizedbymanagement YES

6. Whatpercentageofyourpermanentemployeesismembersofthisrecognizedemployeeassociation? The company encourages voluntary participation of its employees.

1. PleaseindicatetheNumberofcomplaintsrelatingtochildlabour,forcedlabour,involuntarylabour,sexualharassmentinthelastfinan-cialyearandpending,asontheendofthefinancialyear.

S. No. Category No of complaints filed during the

financial yearNo of complaints pending as on the

end of the financial year1. Childlabour/forcedlabour/involuntarylabour NIL NIL2. Sexual harassment 2 NIL3. Discriminatoryemployment NIL NIL

2. Whatpercentageofyourundermentionedemployeesweregivensafety&skillup-gradationtraininginthelastyear? PermanentEmployees :74.60% PermanentWomenEmployees :86.30% Casual/Temporary/ContractualEmployees :NIL EmployeeswithDisabilities :10%

Principle 41. Hasthecompanymappeditsinternalandexternalstakeholders?Yes/No Yes.Thecompanyrecognizestheroleofitsemployees,shareholders,customersandsuppliersasitsstakeholders.

2. Outoftheabove,hasthecompanyidentifiedthedisadvantaged,vulnerable&marginalizedstakeholders? SCIcontinuestosupportMSME’sinareasofsuppliesandserviceswheresuchMSMEvendorsarepresent.

3. Arethereanyspecialinitiativestakenbythecompanytoengagewiththedisadvantaged,vulnerableandmarginalizedstakeholders.Ifso,providedetailsthereof,inabout50wordsorso. NIL.

Principle 51. DoesthepolicyofthecompanyonhumanrightscoveronlythecompanyorextendtotheGroup/JointVentures/Suppliers/Contractors/

NGOs/Others? ThepolicycoverstotheCompanyanditsJointVentureCompanies,totheextenttheyaredealingwithSCI.

2. Howmanystakeholdercomplaintshavebeenreceivedinthepastfinancialyearandwhatpercentwassatisfactorilyresolvedbythemanagement? Detailsw.r..t.StakeholdersGrievancesreceived,pendingandredressedduringtheyearareasfollows:

Sr. No. Particulars No. of Investor

ComplaintsNo. of Customer

ComplaintsNo. of Employee

ComplaintsNo. of Other Complaints

1 Complaintspendingatbeginningofyear01.04.2019 0 0 1 7

2 Complaintsreceivedduringtheyear 3 0 13 50

1st Qtr 1 0 3 6

2nd Qtr 1 0 1 10

3rd Qtr 0 0 5 18



Sr. No. Particulars No. of Investor

ComplaintsNo. of Customer

ComplaintsNo. of Employee

ComplaintsNo. of Other Complaints

4th Qtr 1 0 4 16

3 Complaintsdisposedofduringtheyear 3 0 6 47

4 Complaintsremainingunresolvedattheendoftheyear31.03.2020

0 0 8 10

Principle 6 1. DoesthepolicyrelatedtoPrinciple6coveronlythecompanyorextendstotheGroup/JointVentures/Suppliers/Contractors/NGOs

/others. ThepolicyonSafety,OccupationalHealth&EnvironmentProtectioncoversthecompanyanditsJointVenturecompanies.Beinga

memberoftheUNGlobalCompact,SCIfunctionsinanenvironmentallyresponsiblefashion.2. Doesthecompanyhavestrategies/initiativestoaddressglobalenvironmentalissuessuchasclimatechange,globalwarming,etc?

Y/N.Ifyes,pleasegivehyperlinkforwebpageetc. CompanyhassuccessfullycompliedwithIMO's0.5%sulphurfuelregulationwhichcameintoforcefromJanuary2020andallves-

selsarebeingsuppliedlowsulphurfueloilsince1stJanuary2020.CompanyhasalsotakeninitiativetoinstallBallastWaterTreat-mentPlantsonallthosevesselswhicharenotfittedwiththetreatmentplants.ThisexercisewillbecarriedoutinaphasedmannerinordertocomplywiththeIMOregulationsAlltheShip’sinthefleetcomplywithMARPOLregulationsandhavebeencertifiedwithIOPP(InternationalOilPollutionPrevention),IAPP(InternationalAirPollutionPrevention)certificateandISPP(InternationalSewagePollutionPrevention)certificate.ThishasbeendiscussedindetailintheDirectorsReportunderthepara:ManagementDiscussion&Analysis.

3. Doesthecompanyidentifyandassesspotentialenvironmentalrisks?Y/N Yes.

4. DoesthecompanyhaveanyprojectrelatedtoCleanDevelopmentMechanism?Ifso,providedetailsthereof,inabout50wordsorso.Also,ifYes,whetheranyenvironmentalcompliancereportisfiled? NIL

5. Hasthecompanyundertakenanyotherinitiativeson–cleantechnology,energyefficiency,renewableenergy,etc./N.Ifyes,pleasegive hyperlink for web page etc. Yes. CompanyhassuccessfullycompliedwithIMO's0.5%sulphurfuelregulationwhichcameintoforcefromJanuary2020andall

vesselsarebeingsuppliedlowsulphurfueloilsince1stJanuary2020.6. AretheEmissions/WastegeneratedbythecompanywithinthepermissiblelimitsgivenbyCPCB/SPCBforthefinancialyearbeing

reported? Emissions/WastegeneratedbythecompanyShipsareincomplianceasperIMOrequirements.

7. Numberofshowcause/legalnoticesreceivedfromCPCB/SPCBwhicharepending(i.e.notresolvedtosatisfaction)asonendofFinan-cialYear. Nil.

Principle 71. Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business

deals with:1. BombayChambersofCommerce&Industry(BCCI)2. AssociationofMulti-modalTransportOperatorsofIndia(AMTOI)3. IndianNationalShipOwner'sAssociation(INSA)4. FederationofIndianChambersofCommerce&Industry(FICCI)5. ConfederationofIndianIndustry(CII)6. Baltic&InternationalMaritimeCouncil(BIMCO)7. StandingConferenceofPublicEnterprises(SCOPE)



2. Haveyouadvocated/lobbiedthroughaboveassociationsfortheadvancementorimprovementofpublicgood?Yes/No;ifyesspecifythebroadareas(dropbox:GovernanceandAdministration,EconomicReforms,InclusiveDevelopmentPolicies,Energysecurity,Water,FoodSecurity,SustainableBusinessPrinciples,Others). Thecompanybeinganactivememberofthetradebodies/associations/Autonomousbodiesalwayslobbiesforvariousinitiatives

in Economic Reforms, Energy, Security.Principle 81. Doesthecompanyhavespecifiedprogrammes/initiatives/projectsinpursuitofthepolicyrelatedtoPrinciple8?Ifyesdetailsthereof. Yes.ThevariousCSRinitiativestakenbySCIare:A. Promotion of School Education& Maritime EducationSettingupMiniScienceCentreatgovernmentschoolsofOsmanabad(aspirationaldistrictinMaharashtra)SupportforrunningGAPforholisticdevelopmentofunderprivilegedchildrenatRamakrishnaMissionAshramAnnualGrantstomeritoriousstudentsfromweakersectionofthesociety,viz.SC/ST/BPLcandidates,pursuingMaritimeEducationatpremierinstitutes(IMU’s,IIT’s&MTI)B. Eradicating Hunger & MalnutritionProvisionofMid-Daymealsfor2000schoolchildren.C. Promoting Preventive Health CareSupporttoCancerpatientsforsurgeriesatBhaktiVedantaHospital,MiraRoad,Thane.ContributiontoPMCARESFundforCOVID19support.

2. Aretheprogrammes/projectsundertakenthroughin-houseteam/ownfoundation/externalNGO/governmentstructures/anyotherorganization? Theprojectshavebeenundertakenbythecompanyselfandwithactivesupport&collaborationwithspecializedagencies.

3. Haveyoudoneanyimpactassessmentofyourinitiative? ThecompanyundertakesanImpactAssessmentoftheCSRinitiativestoensurethattheresourcesaregainfullyutilizedforthe

welfare of the intended communities.4. Whatisyourcompany’sdirectcontributiontocommunitydevelopmentprojects-AmountinINRandthedetailsoftheprojectsunder-

taken? Rs.88Lakhs(2019-20)The projects have been mentioned Under Principal No.8 point 1 which are re-iterated below:A. Promotion of School Education & Maritime EducationSettingupMiniScienceCentreatgovernmentschoolsofOsmanabad(aspirationaldistrictinMaharashtra)SupportforrunningGAPforholisticdevelopmentofunderprivilegedchildrenatRamakrishnaMissionAsharamAnnualGrantstomeritoriousstudentsfromweakersectionofthesociety,viz.SC/ST/BPLcandidates,pursuingMaritimeEducationatpremierinstitutes(IMU’s,IIT’s&MTI)B. Eradicating Hunger & MalnutritionProvisionofMid-Daymealsfor2000schoolchildren.C. Promoting Preventive Health CareSupporttoCancerpatientsforsurgeriesatBhaktivedantaHospital,MiraRoad,Thane.ContributiontoPMCARESFundforCOVID19support.

5. Haveyoutakenstepstoensurethatthiscommunitydevelopmentinitiativeissuccessfullyadoptedbythecommunity?Pleaseexplainin50words,orso. ThevariousCSRinitiativesaretakenwithfocusonwelfareoftheeconomicallyandsociallydeprivedsectionsofthesociety,

which are implemented mostly after conducting baseline surveys. It is also our endeavour that a large section of the society is benefitedfromourinitiatives.

Principle 91. Whatpercentageofcustomercomplaints/consumercasesarependingasontheendoffinancialyear. Nocustomer/consumer/shareholders’complaintsarependingasonendoffinancialyear.

2. Doesthecompanydisplayproductinformationontheproductlabel,overandabovewhatismandatedasperlocallaws?Yes/No/N.A./Remarks(additionalinformation)




The company does not manufacture any product. The company being a service provider displays all its services on its website.3. Is thereanycasefiledbyanystakeholderagainst thecompanyregardingunfair tradepractices, irresponsibleadvertisingand/oran-

ti-competitivebehaviourduringthelastfiveyearsandpendingasonendoffinancialyear.Ifso,providedetailsthereof,inabout50wordsor so. NotApplicable.

4. Didyourcompanycarryoutanyconsumersurvey/consumersatisfactiontrend. Noconsumersurveyorconsumersatisfactiontrendwascarriedoutbycompanybutcompanybeinginservicesectorcustomer

satisfactionreportsgeneratedbyoperatingdivisionfortheserviceprovidedbyourfleetvesselstocustomersisanalysedinternallyand trend analysis is done annually.


FORM NO. MGT 9EXTRACT OF ANNUAL RETURN AS ON FINANCIAL YEAR ENDED ON 31.03.2020

PursuanttoSection92(3)oftheCompaniesAct,2013andrule12(1)oftheCompanies (Management&Administration)Rules,2014.

I REGISTRATION & OTHER DETAILS:

i CIN L63030MH1950GOI008033

ii Registration Date 24.03.1950

iii Name of the Company TheShippingCorporationofIndiaLtd.

iv Category/Sub-category of the Company Companylimitedbyshares/UnionGovernmentCompany

v Address of the Registered office & contact details ShippingHouse,245,MadameCamaRoad,Mumbai-400021 ShriDipankarHaldar,ED(LA)&CS, Tel-02222772213

vi Whether listed company Yes

vii Name, Address & contact details of the Registrar & Share Transfer Agent, if any.

M/s. Bigshare Services Pvt Ltd 1stFloor,BharatTinWorksBuilding,Opp.VasantOasis,Makwana Road, Marol, Andheri (East),Mumbai400059,Maharashtra.Tel: 02262638200,Fax :02262638299Email: [email protected]: www.bigshareonline.com

II PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestatedSl. No.

Name & Description of main products/services NIC Code of the Product /service

% to total turnover of the company

1 SeaandCoastalFreightWaterTransport 50120 100%

III PARTICULARS OF HOLDING, SUBSIDIARY & ASSOCIATE COMPANIES

Sl. No. Name & Address of the Company CIN/GLN Holding/Subsidiary/

Associate

% Of Shares Held

Applicable Section

1 India LNG Transport Co.(No. 1) Ltd.171,OldBakeryStreet,Valletta,Malta.

NA

Associate

29.08%

2(6)

2 India LNG Transport Co. (No. 2) Ltd.171,OldBakeryStreet,Valletta,Malta.

29.08%

3 India LNG Transport Co. (No. 3) Ltd.171,OldBakeryStreet,Valletta,Malta.

26.00%

4 India LNG Transport Co. (No. 4) Pvt Ltd.1,HarbourfrontPlace,#13-01,HarbourfrontTowerOne, Singapore

26.00%

5 Irano Hind Shipping Co. Ltd.“IranoHindBuilding”,Adj.MehrshadSt.,SedaghatSt.Opp.ParkMellat,ValiasrAve.,Tehran,Iran.

49.00%

6 SAIL SCI Shipping Co. Pvt. Ltd.“ShippingHouse”,13,StrandRoad, Kolkatta–700001.

U61100WB2010PTC148428 50.00%

7 Inland & Coastal Shipping Ltd.“ShippingHouse”,13,StrandRoad,Kolkatta–700001.

U61100WB2016GOI217822 Subsidiary 100.00% 2(87)

FORM MGT - 9 EXTRACT OF ANNUAL RETURN


IV SHAREHOLDING PATTERN (Equity Share capital Break up as % to total Equity)i) Category-wise Share Holding

Category of Shareholders

No. of Shares held at the beginning of the year 01/04/2019

No. of Shares held at the end of the year31/03/2020 % Change

during the yearDemat Physical Total

% of Total

SharesDemat Physical Total

% of Total

Shares

A. Promoters

(1)Indian

a)Individual/HUF 0 0 0 0.00 0 0 0 0.00 0.00

b)CentralGovt 29,69,42,977 0 29,69,42,977 63.75 29,69,42,977 0 29,69,42,977 63.75 0.00

c)StateGovt(s) 0 0 0 0.00 0 0 0 0.00 0.00

d)BodiesCorp 0 0 0 0.00 0 0 0 0.00 0.00

e)Banks/FI 0 0 0 0.00 0 0 0 0.00 0.00

f) Any Other 0 0 0 0.00 0 0 0 0.00 0.00

Sub-total (A) (1):- 29,69,42,977 0 29,69,42,977 63.75 29,69,42,977 0 29,69,42,977 63.75 0.00

(2) Foreign

a)NRIs-Individuals 0 0 0 0.00 0 0 0 0.00 0.00

b) Other - Individuals 0 0 0 0.00 0 0 0 0.00 0.00

c)BodiesCorp. 0 0 0 0.00 0 0 0 0.00 0.00

d)Banks/FI 0 0 0 0.00 0 0 0 0.00 0.00

e) Any Other 0 0 0 0.00 0 0 0 0.00 0.00

Sub-total (A) (2):- 0 0 0 0.00 0 0 0 0.00 0.00

Total shareholding of Promoter (A) = (A)(1)+(A)( 2) 29,69,42,977 0 29,69,42,977 63.75 29,69,42,977 0 29,69,42,977 63.75 0.00

B. Public Shareholding

1. Institutions

a)MutualFunds 2059685 0 2059685 0.44 2508849 0 2508849 0.54 0.10

b)Banks/FI 6153109 0 6153109 1.32 6721370 0 6721370 1.44 0.12

c)CentralGovt 0 0 0 0.00 0 0 0 0.00 0.00

d)StateGovt(s) 0 0 0 0.00 0 0 0 0.00 0.00

e)VentureCapitalFunds 0 0 0 0.00 0 0 0 0.00 0.00

f) Insurance Companies 68052095 0 68052095 14.61 60656193 0 60656193 13.02 (1.59)

g)FIIs 3309720 0 3309720 0.71 2711701 0 2711701 0.58 (0.13)

h)ForeignPortfolio-Corp. 7451281 0 7451281 1.60 8024688 0 8024688 1.72 0.12

i)ForeignVentureCapitalFunds 0 0 0 0.00 0 0 0 0.00 0.00

j) Others (specify) 0 0 0 0.00 0 0 0 0.00 0.00







% of Total


% of Total

Shares

Sub-total (B)(1):- 87025890 0 87025890 18.68 80622801 0 80622801 17.31 (1.37)

2. Non-Institutions

a)BodiesCorp.

i) Indian 14976100 13700 14989800 3.22 5801844 13700 5815544 1.25 (1.97)

ii) Overseas 0 0 0 0 0 0 0 0 0

b) Individuals

i) Individual shareholders holding nominal share capital upto `1lakh 42589555 20769 42610324 9.15 42178353 13169 42191522 9.06 (0.09)

ii) Individual shareholders holding nominal share capital in excess of `1lakh 16113170 143150 16256320 3.49 21425884 113000 21538884 4.62 1.13

c) Others (specify)

NonResidentIndians 3520326 324100 3844426 0.83 3002982 324100 3327082 0.72 (0.11)

OverseasCorporateBodies 0 0 0 0.00 0 0 0 0.00 0.00

ForeignNationals 0 0 0 0.00 0 0 0 0.00 0.00

NBFC 51223 0 51223 0.01 2203 0 2203 0.00 (0.01)

Trusts 271732 0 271732 0.06 308871 0 308871 0.07 0.01

HUF 0 0 0 0.00 3640677 0 3640677 0.78 0.78

ClearingMember 3573582 0 3573582 0.77 11184093 0 11184093 2.40 1.63

IEPF 232736 0 232736 0.05 224356 0 224356 0.05 0.00

ForeignBodies 0 0 0 0 0 0 0 0 0

Sub-total (B)(2):- 81328424 501719 81830143 17.57 87769263 463969 88233232 18.94 1.37

Total Public Shareholding

(B) = (B)(1) + (B)(2) 168354314 501719 168856033 36.25 168392064 463969 168856033 36.25 0.00

TOTAL (A)+(B) 465297291 501719 465799010 100.00 465335041 463969 465799010 100.00 0.00

C. Shares held by Custodians and against which Depository Receipts have been issued

PromoterandPromoterGroup 0 0 0 0.00 0 0 0 0.00 0.00

Public 0 0 0 0.00 0 0 0 0.00 0.00







% of Total


% of Total

Shares

Sub-total (C):- 0 0 0 0.00 0 0 0 0.00 0.00

GRAND TOTAL (A)+(B)+( C) 465297291 501719 465799010 100.00 465335041 463969 465799010 100.00 0.00

ii) SHARE HOLDING OF PROMOTERS

Sl. No. Shareholders Name

Shareholding at the beginning of the year (as on 01.04.2019)

Shareholding at the end of the year (as on 31.03.2020) % change

in share holding

during the year

No. of shares % of total shares of the

company

% of shares pledged/

encumbered to total shares

No. of shares % of total shares of the

company

% of shares pledged/

encumbered to total shares

1. PresidentofIndia 296942977 63.75 0.00 296942977 63.75 0.000.00Total 296942977 63.75 0.00 296942977 63.75 0.00

(iii) CHANGE IN PROMOTERS’ SHAREHOLDING - Nil

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters & Holders of GDRs & ADRs)

Sl.No. Name

Shareholding

Date

Increase/Decrease

in Shareholding

Reason

Cumulative Shareholding during the year

(01-04-2019 to 31-03-2020)No. of Shares at the beginning (01.04.2019) /

end of year(31.03.2020)

% of totalshares of the

Company No. of Shares


Company

1. LIFE INSURANCE CORPORATION OF INDIA - ULIF004200910LICEND + GRW512

55473797 11.91 01/04/2019 NA NA 55473797 11.9105/04/2019 561827

Sell

54911970 11.7912/04/2019 2687862 52224108 11.2119/04/2019 1370150 50853958 10.9203/05/2019 69671 50784287 10.9010/05/2019 153589 50630698 10.8717/05/2019 143561 50487137 10.8424/05/2019 1178642 49308495 10.5931/05/2019 160968 49147527 10.5514/06/2019 266833 48880694 10.4921/06/2019 536151 48344543 10.3828/06/2019 266648 48077895 10.32

48077895 10.32 31/03/20202. MARWADI SHARES AND

FINANCE LIMITED 5217842 1.12 01/04/2019 NA NA 5217842 1.12

05/04/2019 997285 Sell 4220557 0.9112/04/2019 1008609 Sell 3211948 0.6919/04/2019 40695 Buy 3252643 0.70



Sl.No. Name

Shareholding

Date

Increase/Decrease

in Shareholding

Reason



end of year(31.03.2020)


CompanyNo. of Shares


Company

26/04/2019 57158 Sell 3195485 0.6903/05/2019 627 Sell 3194858 0.6910/05/2019 2100 Sell 3192758 0.6917/05/2019 3976 Buy 3196734 0.6924/05/2019 3028 Buy 3199762 0.6931/05/2019 12050 Buy 3211812 0.6907/06/2019 19420 Sell 3192392 0.6914/06/2019 24355 Sell 3168037 0.6821/06/2019 653647 Sell 2514390 0.5428/06/2019 531429 Sell 1982961 0.4305/07/2019 3433 Sell 1979528 0.4312/07/2019 13952 Sell 1965576 0.4219/07/2019 1625862 Sell 339714 0.0726/07/2019 2012081 Buy 2351795 0.5002/08/2019 2850 Buy 2354645 0.5109/08/2019 9034 Sell 2345611 0.5016/08/2019 1980534 Sell 365077 0.0823/08/2019 1829 Buy 366906 0.0830/08/2019 6855 Buy 373761 0.0806/09/2019 4377470 Buy 4751231 1.0213/09/2019 4353114 Sell 398117 0.0917/09/2019 37276 Sell 360841 0.0818/09/2019 745731 Buy 1106572 0.2420/09/2019 984765 Sell 121807 0.0325/09/2019 43072 Sell 78735 0.0227/09/2019 33454 Buy 112189 0.0230/09/2019 84093 Buy 196282 0.0404/10/2019 99058 Sell 97224 0.0211/10/2019 65848 Sell 31376 0.0118/10/2019 37174 Buy 68550 0.0125/10/2019 31197 Sell 37353 0.0101/11/2019 55452 Buy 92805 0.0208/11/2019 512167 Buy 604972 0.1315/11/2019 32546 Buy 637518 0.1422/11/2019 899369 Buy 1536887 0.3329/11/2019 124463 Buy 1661350 0.3606/12/2019 450790 Sell 1210560 0.2613/12/2019 217391 Buy 1427951 0.3120/12/2019 220525 Sell 1207426 0.26



Sl.No. Name

Shareholding

Date

Increase/Decrease

in Shareholding

Reason



end of year(31.03.2020)




Company

27/12/2019 86276 Sell 1121150 0.2431/12/2019 1001430 Buy 2122580 0.4603/01/2020 974923 Sell 1147657 0.2510/01/2020 169141 Buy 1316798 0.2817/01/2020 226477 Sell 1090321 0.2324/01/2020 3941 Buy 1094262 0.2331/01/2020 154298 Buy 1248560 0.2707/02/2020 178946 Buy 1427506 0.3114/02/2020 7238 Buy 1434744 0.3121/02/2020 117093 Buy 1551837 0.3328/02/2020 78902 Sell 1472935 0.3206/03/2020 1430653 Buy 2903588 0.6213/03/2020 1023202 Buy 3926790 0.8420/03/2020 3532452 Buy 7459242 1.6027/03/2020 118435 Sell 7340807 1.5831/03/2020 347366 Buy 7688173 1.65

7688173 1.65 31/03/20203. THE NEW INDIA ASSURANCE

COMPANY LIMITED4958095 1.06 01/04/2019 NA NA 4958095 1.064958095 1.06 31/03/2020

4. GENERAL INSURANCE CORPORATION OF INDIA

4000000 0.86 01/04/2019 NA NA 4000000 0.864000000 0.86 31/03/2020

5. ICICI PRUDENTIAL VALUEFUND -SERIES 19 2053079 0.44 01/04/2019 NA NA 2053079 0.44

17/05/2019 170 Buy 2053249 0.4424/05/2019 85 Buy 2053334 0.4421/06/2019 550828 Buy 2604162 0.5628/06/2019 396199 Buy 3000361 0.6405/07/2019 86 Buy 3000447 0.6426/07/2019 86 Buy 3000533 0.6416/08/2019 86 Buy 3000619 0.6423/08/2019 92 Buy 3000711 0.6430/08/2019 86 Buy 3000797 0.6425/09/2019 145 Buy 3000942 0.6430/09/2019 85 Buy 3001027 0.6404/10/2019 299915 Sell 2701112 0.58

11/10/2019 85 Buy 2701197 0.58

18/10/2019 13 Buy 2701210 0.58

25/10/2019 85 Buy 2701295 0.58



Sl.No. Name

Shareholding

Date

Increase/Decrease

in Shareholding

Reason



end of year(31.03.2020)




Company

01/11/2019 2 Buy 2701297 0.58

22/11/2019 199915 Sell 2501382 0.54

27/12/2019 67 Buy 2501449 0.54

10/01/2020 85 Buy 2501534 0.54

31/01/2020 85 Buy 2501619 0.54

07/02/2020 85 Buy 2501704 0.54

14/02/2020 43 Buy 2501747 0.54

06/03/2020 215 Buy 2501962 0.54

20/03/2020 129 Buy 2502091 0.54

27/03/2020 172 Buy 2502263 0.54

31/03/2020 86 Buy 2502349 0.54

2502349 0.54 31/03/2020

6. JUDE MAGIMA 800000 0.17 01/04/2019 NA NA 800000 0.1712/04/2019 272000 Buy 1072000 0.2319/04/2019 371211 Buy 1443211 0.3126/04/2019 523587 Buy 1966798 0.4203/05/2019 86092 Buy 2052890 0.4410/05/2019 204475 Buy 2257365 0.4817/09/2019 100000 Sell 2157365 0.4625/09/2019 157365 Sell 2000000 0.43

2000000 0.43 31/03/20207. NATIONAL INSURANCE

COMPANY 1991333 0.43 01/04/2019 NA NA 1991333 0.43

1991333 0.43 31/03/20208. HSBC GLOBAL INVESTMENT

FUNDS - ASIA EX JAPAN EQUITY SMALLER COMPANIES

0 0.00 01/04/2019 NA NA 0 0.00

11/10/2019 767277 Buy 767277 0.1618/10/2019 525665 Buy 1292942 0.2801/11/2019 1292942 Sell 0 0.0013/03/2020 136596 Buy 136596 0.0320/03/2020 1174679 Buy 1311275 0.2827/03/2020 603818 Buy 1915093 0.41

1915093 0.41 31/03/20209. PUNJAB NATIONAL BANK 1906153 0.41 01/04/2019 NA NA 1906153 0.41

1906153 0.41 31/03/202010. CENTRAL BANK OF INDIA 1726153 0.37 01/04/2019 NA NA 1726153 0.37

1726153 0.37 31/03/202011. DIMENSIONAL EMERGING

MARKETS VALUE FUND 1499009 0.32 01/04/2019 NA NA 1499009 0.32

12/04/2019 20204 Buy 1519213 0.3327/09/2019 30122 Sell 1489091 0.3230/09/2019 74958 Sell 1414133 0.30



Sl.No. Name

Shareholding

Date

Increase/Decrease

in Shareholding

Reason



end of year(31.03.2020)




Company

15/11/2019 49983 Sell 1364150 0.2922/11/2019 91341 Sell 1272809 0.2713/12/2019 31287 Sell 1241522 0.27

1241522 0.27 31/03/202012. ISSL SETTLEMENT AND

TRANSACTION SERVICES LIMITED

2000000 0.43 01/04/2019 NA NA 2000000 0.43

26/07/2019 2000000 Sell 0 0.000 0.00 31/03/2020

13. IL AND FS SECURITIES SERVICES LIMITED

1540663 0.33 01/04/2019 NA NA 1540663 0.3305/04/2019 1262031 Sell 278632 0.0605/04/2019 1330 Buy 279962 0.0612/04/2019 17920 Sell 262042 0.0610/05/2019 10171 Sell 251871 0.0524/05/2019 4195 Sell 247676 0.0531/05/2019 1070 Sell 246606 0.0507/06/2019 53164 Sell 193442 0.0414/06/2019 15296 Sell 178146 0.0421/06/2019 166508 Sell 11638 0.0028/06/2019 2120 Sell 9518 0.0012/07/2019 3000 Sell 6518 0.0019/07/2019 6518 Sell 0 0.00

0 0.00 31/03/2020

(v) Shareholding of Directors & KMP:TheDirectorsandKMPsdonotholdanysharesinSCI.

V : INDEBTEDNESS (` in lakhs)Indebtedness of the Company including interest outstanding / accrued but not due for payment

Secured Loans excluding deposits *

Unsecured Loans**

Deposits Total Indebtedness

Indebtedness at the beginning of the financial yeari) PrincipalAmount 2,96,368.00 2,31,377.00 - 5,27,745.00ii) Interest due but not paid - - - -iii) Interest accrued but not due 3,419.90 518.84 - 3,938.74

Total (i + ii + iii) 2,99,787.90 2,31,895.84 - 5,31,683.74 Change in Indebtedness during the financial yearAddition - 1,62,672.77 - 1,62,672.77Reduction*** 78,842.03 1,38,884.97 - 2,17,727.00Net Change (78,842.03) 23,787.80 - (55,054.23)Indebtedness at the end of the financial year

i) PrincipalAmount 2,18,937.00 2,55,182.00 - 4,74,119.00ii) Interest due but not paid - - - -iii) Interest accrued but not due 2,008.86 501.65 - 2,510.51

Total (i + ii + iii) 2,20,945.86 2,55,683.65 - 4,76,629.51


---


*TheSecuredLoansincludescurrentmaturitiesonLongtermLoanswhichareincludedunderFinancialOtherCurrentLiabilitiesintheFinancialStatements.**UnsecuredLoaniscomprisingofbothshorttermandlongtermloans.***IncludeschangesduetoForex.

VI : REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Whole Time Director and/or Manager

(Amount in `)

Sl. No.

Particulars of Remuneration

Name of the Directors Total AmountCapt

Anoop Kumar

Sharma *

Smt H.K. Joshi

Shri Shrikant Kher **

Shri Rajesh Sood

Smt. Sangeeta Sharma

Shri Surinder Pal Singh Jaggi

Shri Atul Ubale ***

1 GrossSalary

(a) Salary as per provi-sions contained in section 17(1) of the Income Tax Act, 1961

26,33,089 47,98,153 38,78,599 43,74,695 46,53,715 36,44,385 12,01,457 2,51,84,093

(b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961

7,18,009 4,00,780 30,319 3,45,476 3,93,396 2,42,464 76,682 22,07,126

(c)Profitsinlieuofsalaryundersection17(3)oftheIncomeTaxAct,1961

- - - - - - - -

2 Stock option - - - - - - - -

3 SweatEquity - - - - - - - -

4 Commision

as%ofProfit - - - - - - - -

others (specify) - - - - - - - -

5 Others, please specify -(CanteenCoupons&ContributionofPF

3,45,281 4,96,196 7,81,911 3,90,234 3,52,443 4,90,325 2,66,298 31,22,688

Total (A) 36,96,379 56,95,129 46,90,829 51,10,405 53,99,554 43,77,174 15,44,437 3,05,13,907

CeilingaspertheAct - - - - - - -

*Capt.AnoopKumarSharmaceasedtobeontheBoardofSCIw.e.f11thSeptember2019**ShriS.V.Khersuperannuatedon30thSeptember2019***ShriAtulUbalehasbeenholdingthepostofDirector(B&T)w.e.f.5thDecember2019

B. Remuneration to other directors:(Amount in `)

Sl. No.

Name of Directors Particulars of Remuneration

Fee for attending board/committee

meetings

Commission and/ or any other remu-

neration

Others, please specify

Total

i. INDEPENDENT DIRECTORS1. ShriArunBalakrishnan* 1,60,000 - - 1,60,0002. Dr.GautamSinha 2,00,000 - - 2,00,0003. Dr.KanagasabapathiP. 3,20,000 - - 3,20,000



Sl. No.

Name of Directors Particulars of Remuneration

Fee for attending board/committee

meetings

Commission and/ or any other remu-

neration

Others, please specify

Total

4. ShriRajKishoreTewari 2,80,000 - - 2,80,0005. CAMavjibhaiBSorathia 2,80,000 - - 2,80,0006. ShriVijayTulshiramjiJadhao 1,80,000 - - 1,80,0007. ShriPramodKumarPanda** 60,000 - - 60,000

TOTAL (B1) 14,80,000ii. OTHER NON-EXECUTIVE DIRECTORS

8 Shri Shambhu Singh - - - -9. ShriSanjayKumar - - - -10. ShriSatinderPalSingh - - - -

TOTAL (B2) -GRAND TOTAL (A+B1+B2) 3,19,93,907

*ShriArunBalakrishnanceasedtobeontheBoardwitheffectfrom20.03.2020**ShriPramodKumarPandahadbeeninductedontheBoardwitheffectfrom18.10.2019.

C. Remuneration to Key Managerial Personnel other than MD/ Manager/ WTD (Amount in `)

Sl.No.


Key Managerial Personnel

Total

CEO CFO Company Secretary

Capt. Anoop Kumar Sharma

Smt. H.K. Joshi(w.e.f. 19th

December 2019 to 31st March

2020)

Smt. H.K. Joshi(1st April 2019 to 18th Decem-

ber 2019)

Shri L C Serrao ( w.e.f. 5th Feb 2020 to 31st March 2020)

Shri Dipankar Haldar

1 GrossSalary

(a) Salary as per provisions contained in sec-tion17(1)oftheIncome Tax Act, 1961

26,33,089 13,63,410 34,34,743 6,66,605 38,22,996 1,19,20,843

(b)Valueofper-quisitesu/s17(2)of the Income Tax Act,1961

7,18,009 1,13,883 2,86,897 23,978 2,70,653 14,13,420

(c)Profitsinlieuof salary under section17(3)ofthe Income Tax Act,1961

- - - -

2 Stock option - - - -

3 SweatEquity - - - -



Sl.No.


Key Managerial Personnel

Total

CEO CFO Company Secretary

Capt. Anoop Kumar Sharma

Smt. H.K. Joshi(w.e.f. 19th

December 2019 to 31st March

2020)

Smt. H.K. Joshi(1st April 2019 to 18th Decem-

ber 2019)

Shri L C Serrao ( w.e.f. 5th Feb 2020 to 31st March 2020)

Shri Dipankar Haldar

4 Commission

as%ofProfit - - - -

others (specify) - - - -

5 Others, please specify-(CanteenCoupons&Contri-butionofPF)

3,45,281 1,40,996 3,55,200 5,234 5,09,898 13,56,609

Total 36,96,379 16,18,289 40,76,840 6,95,817 46,03,547 1,46,90,872

Notes: Capt.AnoopKumarSharmawasholdingthepositionofCEOtill11thSeptember2019forwhichhedoesnotreceiveanyseparate

remuneration.HeceasedtobeontheBoardofSCIw.e.f11thSeptember2019.Theabove-mentionedcomponentsofhisremunerationarethesameasdeclaredunderParaVI(A)above.

SmtHKJoshiwasholdingthepositionofDirector(Finance) i.e.,CFOtill18thDecember2019andalsoholdingadditionalchargeofChairpersonandManagingDirectori.e.,CEOfortheperiod12thSeptember2019to18thDecember2019forwhichshedoesnotreceiveanyseparateremuneration.SmtHKJoshiisholdingthepositionofChairpersonandManagingDirectori.e,CEOw.e.f19thDecember2019andalsoholdingadditionalchargeofDirector(Finance)w.e.f.19thDecember2019forwhichshedoesnotreceiveanyseparateremuneration.Inviewofabove,herremunerationfortheperiod1stApril2019to18thDecember2019ispresentedinabovetableunderheading"CFO"andfortheperiod19thDecember2019to31stMarch2020isshowninabovetableunderheading"CEO".Theabove-mentionedcomponentsofherremunerationarethesameasdeclaredunderParaVI(A)above.

TheBoardofDirectorsoftheCompanyattheirmeetingheldon04.02.2020hasappointedShri.LawrenceCajetanSerraoasChiefFi-nancialOfficer(CFO)oftheCompanyw.e.f.05.02.2020.ShriLawrenceCajetanSerraoisholdingthepositionofCFOw.e.f.05.02.2020for which he does not receive any separate remuneration.

VII PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES SCIhasreceivedlettercommunicationfromNationalStockExchangeofIndiaLtd.AndfromBombayStockExchangeLtd,levyingpenaltyfornon-complianceoftheprovisionsofReg.34(1)ofSEBI(LODR)Regulations,2015fornotfilingAnnualReporttoStockExchangewithinthetime.BasedontherepresentationmadebytheCompany,boththeStockExchangeshavethereafterwithdrawnthisallegationandrefunded/adjusted the penalty which was levied.



FORM AOC-I[Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014]Statementcontainingsalientfeaturesofthefinancialstatementofsubsidiaries/associatecompanies/jointventures

Part “A”: Subsidiaries (` in lakhs)

Sl. No. Particulars Details

1. Name of the subsidiary Inland&CoastalShippingLimited*

2. Financial Year ending on 31.03.2020

3. Reporting Currency INR

4. Share capital 5

5. Reserves & surplus -9.68

6. Total assets 5.46

7. Total Liabilities 10.14

8. Investments 0

9. Turnover 0

10. Profit before taxation -0.082

11. Provision for taxation 0

12. Profit after taxation -0.082

13. Proposed Dividend 0

14. % of shareholding 100%

*“InlandandCoastalShippingLimited"(ICSL)iswhollyownedsubsidiarycompanyincorporatedinIndiaon29thSeptember2016.ICSLisyettocommencecommercialoperations.Forthepurposeofconsolidationprofit/lossforICSLhasbeentakenfromtheauditedfinancialstatementsfortheyearending31stMarch2020.TheabovesubsidiaryaccountsareauditedbytheauditorsotherthanstatutoryauditorsoftheCompany.

PART “B” : Associate Companies and Joint Ventures [Pursuanttofirstprovisotosub-section(3)ofsection129readwithrule5oftheCompanies(Accounts)Rules,2014]

Name of Associates/Joint Venture India LNG Transport Co. (No. 1) Ltd.

India LNG Transport Co. (No. 2) Ltd.


India LNG Transport Co.

(No. 4) Pvt Ltd.

Irano Hind Shipping

Company Ltd.

SAIL SCI Shipping Pvt.

Ltd.

1.LatestauditedBalanceSheetDate 31.03.2020 31.03.2020 31.03.2020 31.12.2019 20.03.2018 31.03.2019

2.DateonwhichtheAssociateorJointVenturewasassociatedoracquired

21.05.2001 21.05.2001 05.12.2006 13.11.2013 20.03.1975 02.08.2010

3.SharesofAssociate/JointVenturesheld by the company at year end

No.ofShares 2908 2908 2600 11036558 46060000 100000

STATEMENT PURSUANT TO ASSOCIATE COMPANIES & JOINT VENTURES


Name of Associates/Joint Venture India LNG Transport Co. (No. 1) Ltd.



India LNG Transport Co.

(No. 4) Pvt Ltd.

Irano Hind Shipping

Company Ltd.

SAIL SCI Shipping Pvt.

Ltd.

Amount of Investment in Associ-ates/JointVenture(inlakhs)

3 3 1 7352 39 10

Extent of Holding 29.08% 29.08% 26% 26% 49% 50%

4.Descriptionofhowthereis significantinfluence

shareholding shareholding shareholding shareholding shareholding shareholding

5.Reasonwhyassociate/jointventureis not consolidated

NA NA NA NA IHSCisaninvestment

held for sale

SAILSCIisan investment held for sale

6.Networthattributabletoshare-holdingasperlatestauditedBalancesheet (` in lakhs)

11644 11541 -3556 8303 -8046 6

7. Profit / (-) Loss for the year (` in lakhs)*

i.Consideredinconsolidation 1962 1949 -1707 1210 NA NA

ii.Notconsideredinconsolidation NA NA NA NA -696 0

*Profit/lossfortheyeardoesnotincludeothercomprehensiveincome TheabovejointventureaccountsareauditedbytheauditorsotherthanstatutoryauditorsoftheCompany.

As per our report of even date attached hereto. For and on behalf of the Board of Directors,

For V. Sankar Aiyar & Co., Chartered Accountants

FR. No. 109208W

For Haribhakti & Co. LLP,Chartered Accountants

FR. No. 103523W/W100048

Mr. Dipankar HaldarED (LA & Company Secretary)

Mr. L. C. SerraoChief Financial Officer

CA G SankarPartner

Membership No. 046050

CA Hemant J. BhattPartner


Mrs. H. K. JoshiChairperson & Managing Director &

Director (Finance) Addl.chargeDIN - 07085755

Mumbai, Dated the 29th May, 2020 Mumbai, Dated the 29th May, 2020

FORM AOC-1 STATEMENT PURSUANT TO ASSOCIATE COMPANIES & JOINT VENTURES


FORM NO. AOC-2[Pursuanttoclause(h)ofsub-section(3)ofsection134oftheActandRule8(2)oftheCompanies

(Accounts)Rules,2014]Formfordisclosureofparticularsofcontracts/arrangementsenteredintobythecompanywithrelatedpartiesreferredtoinsub-section(1)

ofsection188oftheCompaniesAct,2013includingcertainarm’slengthtransactionsunderthirdprovisothereto1.Details of contracts or arrangements or transactions not at arm’s length basisTherewerenocontractsorarrangementsortransactionsenteredintoduringtheyearended31stMarch,2020whichwerenotatarm’slength basis.

2.Details of material contracts or arrangement or transactions at arm’s length basisThedetailsofmaterialcontractsorarrangementortransactionatarm’slengthbasisfortheyearended31stMarch,2020areasfollows:

Name of the related

party

Nature of relationship

Duration of contracts/ arrange-ments/

transactions (yr)

Salient terms of the contract or arrangements

Nature of Transactions Material Transactions (in INR lacs)

Date (s) of approval by the Board,

if any

Amount paid as advances,

if any

ILTNo.1Ltd.

JointVentureCompany

till2028Basedon

transfer pricing guidelines

Management&Accountingfee 497 12.12.2008 Noadvances

InterestonSHL* 16106.05.2001

SHLprovided/(repaidbyJV) (510)

Guarantees given during theYear -

TOTAL 148

ILTNo.2Ltd.

JointVentureCompany

till2028Basedon




SHLprovided/(repaidbyJV) (481)

Guarantees given during theYear 1,813

TOTAL 1,981

ILTNo.3Ltd.

JointVentureCompany

till2034Basedon



InterestonSHL* 1,01924.09.2012

SHLprovided/(repaidbyJV) 1,060


TOTAL 2,616

ILTNo.4Pvt.Ltd.

JointVentureCompany

till2035Basedon




SHLprovided/(repaidbyJV) 33


TOTAL 451

*SHL-Shareholders'LoanprovidedbySCItoJointVentures

MumbaiDate : 7th August 2020

For and on behalf of the Board of DirectorsMrs. H. K. Joshi,

Chairperson & Managing Director & Director (Finance) Addl.chargeDIN - 07085755

PARTICULARS OF CONTRACTS/ARRANGEMENTS ENTERED INTO WITH RELATED PARTIES


SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED 31st March, 2020

[Pursuant to section 204(1) of the Companies Act, 2013 and Rule no.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

To,The Members,TheShippingCorporationofIndiaLimited,Shipping House, MadameCamaRoad,NarimanPoint,Mumbai400021.I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by TheShippingCorporationofIndiaLimited(hereinaftercalled‘theCorporation’).SecretarialAuditwasconductedinamannerthatprovidedmeareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.BasedonmyverificationoftheCorporation’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCorporationandalsotheinformationprovidedbytheCorporation,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,Iherebyreportthatinmyopinion,theCorporationhasduringtheauditperiodcoveringthefinancialyearendedon31stMarch,2020compliedwiththestatutoryprovisionslistedhereunderandalsothattheCorporationhasproperBoardprocessandcompliancemechanism in place to the extent, in the manner and subject to the reporting made hereinafter.Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbyTheShippingCorporationofIndiaLimitedforthefinancialyearendedon31stMarch,2020accordingtotheprovisionsof:(i) TheCompaniesAct,2013(theAct)andtherulesmadethereunder;(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;(iii) TheDepositoriesAct,1996andtheRegulationsandByelawsframedthereunder;(iv) ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereundertotheextentofForeignDirectInvestment,

OverseasDirectInvestmentandExternalCommercialborrowing;(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIACT’):-

(a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;(b) SecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015.

(vi) ThefollowingActs/GuidelinesspecificallyapplicabletotheCompany:(a) MerchantShippingAct,1958(b) GuidelinesonCorporateGovernanceforCentralPublicSectorEnterprises,2010;(c) InternationalSafetyManagementCode(ISM).(d) GuidelinesonCorporateGovernanceforCentralPublicSectorEnterprises,2010.

Ireportthatduringtheyearunderreviewtherewasnoaction/eventinpursuanceof–(a) TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtsSecurities)Regulations,2008(b) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;(c) TheSecuritiesandExchangeBoardofIndia(Buy-backofSecurities)Regulations,1998;(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme)

Guidelines,1999;(e) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009;(f) The Securities and Exchange Board of India (Registrar to an Issue and Share Transfer Agents) Regulations, 1993 regarding the

CompaniesActanddealingwiththeclient.I have also examined compliance with the applicable clauses of the following:a) SecretarialStandardswithregardtoMeetingoftheBoardofDirectors(SS-1)andGeneralMeetings(SS-2)issuedbytheInstituteof

theCompanySecretariesofIndia;and

FORM MR-3 SECRETARIAL AUDIT REPORT FOR THE YEAR ENDED 31ST MARCH, 2020


b) SEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.DuringtheperiodunderreviewtheCorporationhascompliedwiththeprovisionsoftheAct,RulesRegulations,Guidelines,Standards,etc.mentioned above subject to the following observations:

The Corporation has complied with the requirements of Corporate Governance as provided under Regulation 17 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance, with the exception of appointment of Independent Directors to the extent of 50% of the total strength of the Board during the period 1st April, 2019 to 30th September, 2019 and 21st March, 2020 onwards. It is clarified by the Corporation that the matter is being pursued with the Administrative Ministry for appointing required number of Independent Directors on the Board within the period prescribed under Section 149 of the Companies Act, 2013 and Regulation 25(6) of the SEBI (LODR) Regulations, 2015.

According to Company, though it complied with the provisions of Regulation 34 (1) of the SEBI (LODR) Regulations, 2015, which relates to simultaneous submission of Annual Report to the Exchanges, the Company received the notice from both the Stock Exchanges i.e. NSE and BSE, expressing their views that there was non-compliance by the Company. In this regard, the Company had made representation with the said Stock Exchanges and SEBI. Based on the representation both these Stock Exchanges have withdrawn this allegation and refunded/adjusted the penalty.

IfurtherreportthatthecompliancebytheCompanyofapplicablefinanciallawslikedirectandindirecttaxlawshasnotbeenreviewedinthisauditsincethesamehasbeensubjecttoreviewbystatutoryfinancialauditandotherdesignatedprofessionals.I further report that –l The Board of Directors of the Company is constituted as per Regulation 17 of the SEBI (Listing Obligations and Disclosure

Requirements) Regulations, 2015 with balance of Executive Directors and Non-Executive Directors, but with the exception of appointment of Independent Directors to the extent of 50% of the total strength of the Board during the period 1st April, 2019 to 30th September, 2019 and 21st March, 2020 onwards. It is clarified by the Corporation that the matter is being pursued with the Administrative Ministry for appointing required number of Independent Directors on the Board within the period prescribed under Section 149 of the Companies Act, 2013 and Regulation 25(6) of the SEBI (LODR) Regulations, 2015. The changes in the composition oftheBoardofDirectorsthattookplaceduringtheyearunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.

l AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvanceandasystemexitsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeeting and for meaningful participation at the meeting.

l Aspertheminutesofthemeetingdulyrecordedandsignedbythechairman,thedecisionsoftheBoardwereunanimousandnodissenting views have been recorded.

l According to the Company though it had complied with the provisions of Clause 34 (1) of SEBI (LODR) Regulations, 2015, which relates to simultaneous submission of Annual Report to the Stock Exchanges, the Company received the notice from both the Stock Exchanges. However, based on the representation made before the BSE/NSE and SEBI, both these Stock Exchanges have withdrawn this allegation and refunded/adjusted the penalty.

IfurtherreportthatthereareadequatesystemsandprocessesintheCorporationcommensuratewiththesizeandoperationoftheCorporationto monitor and ensure compliance with applicable laws, rules, regulations and guidelines. IfurtherreportthatduringtheauditperiodtheCorporationhadnospecificevents/actionshavingamajorbearingontheCorporation’saffairsin pursuance to the laws, rules, regulations, guidelines, standards, etc. referred to above.

UDIN: F002727B000369161 (U.C. SHUKLA)Place: Mumbai COMPANY SECRETARYDate: 23/06/2020 FCS: 2727/CP: 1654

Note: This report is to be read with my letter of even date which is annexed as ‘ANNEXURE A’ and forms an integral part of this report.




ANNEXURE ATo,The MembersTheShippingCorporationofIndiaLtd.,Shipping House MadameCamaRoad,NarimanPoint,Mumbai400021.

My report of even date is to be read with this letter.

1. MaintenanceofsecretarialrecordistheresponsibilityofthemanagementoftheCorporation.Myresponsibilityistoexpressanopinionon these secretarial records based on my audit.

2. Ihavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsofthesecretarialrecords.Theverificationwasdoneonthetestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords. I believe that the process and practices, I followed, provide reasonable basis for my opinion.

3. IhavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandbooksofaccountsoftheCorporation.

4. Wherever required, I have obtained themanagement representation about the compliance of the laws, rules and regulations andhappening of events etc.

5. The compliance of the provisions of corporate and other applicable laws, rules, regulations and standards is the responsibility of the management.Myexaminationwaslimitedtotheverificationofprocedureontestbasis.

6. ThesecretarialauditreportisneitheranassuranceastofutureviabilityoftheCorporationnoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCorporation.

(U.C. SHUKLA)Place: Mumbai COMPANY SECRETARYDate: 23/06/2020 FCS: 2727/CP: 1654


SCI’s Philosophy on Corporate GovernanceSCI constantly keeps the Corporate Governance issues in focus. It is SCI’s policy to provide adequate and timely information to allstakeholders.SCI’sendeavorinthisrespecthasbeenacknowledgedandappreciatedyearafteryear.Thisyeartoo,SCIwillstrivetomeettheexpectationsofvariousstakeholders.SCIapartfromcomplyingwiththeCompaniesAct2013andSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015[hereinafterreferredasSEBI(LODR)Regulations,2015]hasalsoadoptedtheguidelinesissuedbytheDPEin2010onCorporateGovernance.SCI’s Code of ConductTheBoardofDirectorsoftheCompanyadopted“CodeofBusinessConduct&EthicsforBoardmembers&SeniorManagementPersonnel”.ThisCodeofConductisbifurcatedintothe“CodeofBusinessConduct&EthicsforBoardMembers”&“CodeofBusinessConductforSeniorManagementPersonnel”.TheCodeisinalignmentwiththeCompany’svisionandvaluestoachievetheMission&ObjectivesandaimsatenhancingethicalandtransparentprocessinmanagingtheaffairsoftheCompany.TheCodeispostedontheCompany’sWebsite-www.shipindia.comTheBoardmembersandSeniorManagementPersonnelhaveaffirmedcompliancetothiscodeandadeclarationtothiseffectsignedbyChairperson&ManagingDirectorisprovidedattheendofthisReport.Board of Directors:Composition of the Board of DirectorsAsofdate,theBoardofDirectorsofyourCompanycomprises13memberswithamixof5executiveDirectors(includingChairperson&ManagingDirector)and2non-executiveDirectors(GovernmentDirectorswhorepresentthepromotersi.e.GovernmentofIndia)and6Non-OfficialPartTimeDirectors(IndependentDirectors).AsthecompositionofBoardisnotcompliantwiththerequirementsofregulation17(1)ofSEBI(LODR)Regulations,2015,theCompanyisinregularcommunicationwiththeMinistryofShippingforfillingupofthevacantpositionsofIndependentDirectors.NoneoftheBoardofDirectorsoftheSCIisrelatedinter-se.UponcompletionoftenureofCapt.AnoopKumarSharma,Smt.HKJoshitookadditionalchargeasChairpersonandManagingDirectorofSCIw.e.f12.09.2019apart fromherregularpositionofDirector(Finance).Thereafter,w.e.f19thDecember,2019shewasappointedbytheGovernmentofIndiaastheChairperson&ManagingDirector,SCIapartfromholdingadditionalchargeofDirector(Finance).UponcompletionoftenureofShriShrikantVKheron30.09.2019,SmtH.K.JoshialsoassumedtheadditionalchargeofthepostofDirector(BulkCarrier&Tanker)w.e.f01.10.2019.SmtHKJoshiassumedadditionalchargeofthepostofDirector(Finance)witheffectfrom19.12.2019forperiodsof3monthsvideMinistrycommunicationdated26.12.2019.TheMinistryofShippinginformedvideOrderdated26.12.2019thatSmt.H.K.Joshi,willcontinuetoholdtheadditionalchargeofthepostofDirector(Finance),forafurtherperiodof3(three)monthsw.e.f.19.03.2020.Further,on11.06.2020,theMinistryofShippinginformedthatincontinuationofMinistry’sOfficeOrderdated16.04.2019Smt.H.K.Joshi,willcontinuetoholdtheadditionalchargeofthepostoftheDirector(Finance),forafurtherperiodof3(three)monthsw.e.f.19.06.2020oruntilfurtherorders,whicheverisearlier.ShriAtulUbalewasappointedontheBoardofSCIasDirector(B&T)on11.11.2019whichwasregularizedfrom05.12.2019onhisobtainingDIN.ShriShambhuSingh,aPartTimeOfficialNomineeDirectorhasceasedtobeontheBoardofSCIwitheffectfrom28.01.2020.Subsequently,ShriSanjayKumar,AdditionalSecretary&FinancialAdvisor(Shipping),wasappointedasParttimeOfficialNomineeDirectorontheBoardofSCIwitheffectfrom29.01.2020.ShriPramodKumarPandahasbeenappointedasNon-OfficialPartTimeIndependentDirectorontheBoardofSCIwitheffectfrom18.10.2019.ShriArunBalakrishnanwhowasre-appointedasNon-OfficialPartTime(Independent)Director,ceasedtobeDirectorontheBoardofSCIwitheffectfrom20.03.2020.Thedirectorshipsheldinotherpubliclimitedcompaniesandmembership/chairpersonshipheldintheCommitteesofsuchBoardsbythemembersoftheBoardofyourCompanyason31stMarch,2020aresetoutbelow:-

Name Designation

No. of Directorships, category of Directorships and Committee Membership / Chairpersonship in other public

limited companiesDirectorship

& Category of Directorship

**Committee

Membership/ ChairpersonshipExecutive Directors (Whole-Time)

Smt H K Joshi Chairperson&ManagingDirector&Director(Finance)Addl.charge

Inland&CoastalShippingLtd.–Non-ExecutiveDirector#

Nil

REPORT OF THE DIRECTORS ON CORPORATE GOVERNANCE


Name Designation

No. of Directorships, category of Directorships and Committee Membership / Chairpersonship in other public

limited companiesDirectorship

& Category of Directorship

**Committee

Membership/ Chairpersonship

Smt Sangeeta Sharma Director(Liner&PassengerServices)

Sethusamudram CorporationLtd-Non-ExecutiveDirector#

NIL

Shri Rajesh Sood Director(Technical&OffshoreServices) NILShri Surinder Pal Singh Jaggi Director(Personnel&Administration) NILShri Atul Ubale@ Director(BulkCarrierandTanker) NIL

Non-Executive Directors (Part-Time Ex-Officio)

Shri Sanjay Kumar AdditionalSecretary&FinancialAdvisor(Shipping)

NIL

Shri Satinder Pal Singh JointSecretary(Shipping)SagarmalaDevelopmentCoLtd-GovernmentNomineeDirector

Membership:AuditCommittee

Non-Executive Directors (Part-Time Independent)

Shri Raj Kishore Tewari IndependentDirectorMahanagarGasLtd-IndependentDirector

Chairpersonship:1)Auditcommittee2)Stakeholders’RelationshipCommittee.

Dr Gautam Sinha

IndependentDirector NIL

Dr. P. KanagasabapathiShri Vijay Tulshiramji JadhaoCA Mavjibhai B SorathiaShri Pramod Kumar Panda@@

**InaccordancewithRegulation26(1)oftheSEBI(LODR)Regulations,2015onlydirectorshipsonpubliclimitedcompanieshavebeenconsideredandthedirectorshipsonprivatelimitedcompanies,foreigncompaniesandcompaniesunderSection8oftheCompaniesAct,2013havebeenexcluded.Similarly,intermsoftheaboveregulationmembership/chairpersonshipoftheAuditCommitteeandStakeholders’RelationshipCommitteeofallPublicLimitedCompanieshasbeenconsidered.#NominatedbySCI@Videletterdated11.11.2019theMinistryofShippinginformedthat,ShriAtulUbalewasappointedasDirector(B&T)ontheBoardofSCI.ShriAtulUbalehadbeenappointedasAdditionalDirectorontheBoardofSCIundersection161oftheCompaniesAct,2013w.e.f05.12.2019i.ethedateofobtaininghisDINtilltheforthcomingAnnualGeneralMeeting.@@Vide letter dated 18.10.2019, theMinistry of Shipping informed that, Shri. Pramod Kumar Pandawas appointed as IndependentDirectorontheBoardofSCI.Shri.PramodKumarPandawasappointedasAdditionalDirectorontheBoardofSCIundersection161oftheCompaniesAct,2013toholdofficeasaNon-OfficialPartTimeIndependentdirectoroftheCompanyundersection149oftheCompaniesAct,2013witheffectfrom18.10.2019tilltheforthcomingAnnualGeneralMeeting.Board Meetings / Annual General MeetingDuringthefinancialyear2019-2020,five(5)BoardMeetingswereheld,thedatesbeing,28.05.2019,09.08.2019,06.11.2019,04.02.2020and13.03.2020.ThedetailsaboutattendanceoftheDirectorsattheBoardMeetingsandatthe69thAnnualGeneralMeeting(AGM)heldon25.09.2019aregivenbelow:



Name of the DirectorNo. of Meetings Attendance at the last AGM held on

25.09.2019Held during the tenure of Directors AttendedSmt. H.K. Joshi* 5 5 YesCapt. Anoop Kumar Sharma* 2 2 NAShri. Shambhu Singh* 3 1 NAShri. Sanjay Kumar* 2 0 NAShri Satinder Pal Singh 5 3 NASmt. Sangeeta Sharma 5 4 YesShri. Rajesh Sood 5 5 YesShri. Shrikant V.Kher* 2 2 YesShri. Surinder Pal Singh Jaggi 5 5 YesShri. Atul Ubale* 2 2 NAShri. Arun Balakrishnan* 4 3 NADr. Gautam Sinha 5 4 YesShri. Raj Kishore Tewari 5 5 YesDr. P Kanagasabapathi 5 5 NACA Mavjibhai B Sorathia 5 5 YesShri. Vijay Tulshiramji Jadhao 5 5 NAShri. Pramod Kumar Panda* 3 2 NA

*ThechangestakenplaceintheconstitutionoftheBoardofDirectorsofSCIduringtheFY2019-2020areasfollows:-

Name of the Director Date of Appointment Date of Cessation Reason for cessation

Capt. Anoop Kumar Sharma - 11.09.2019 CompletionofTenure

Smt H K Joshi 12.09.2019 18.12.2019 AdditionalChargeofCMD

Shri S V Kher - 30.09.2019 CompletionofTenure

Smt H K Joshi 01.10.2019 04.12.2019 AdditionalChargeofD(B&T)

Shri Pramod Kumar Panda 18.10.2019 - -

Shri. Atul Ubale 05.12.2019 - -

Smt. H. K Joshi 19.12.2019 - -

Smt. H. K Joshi 19.12.2019 18.03.2020 AdditionalChargeofD(Finance)

Smt. H. K Joshi 19.03.2020 18.06.2020 AdditionalChargeofD(Finance)

Smt. H. K Joshi 19.06.2020 - ExtensionofAdditionalChargeofD(Finance)

Shri Shambhu Singh 03.05.2018 28.01.2020 CompletionofTenure

Shri Sanjay Kumar 29.01.2020 - NominatedbytheMinistryofShipping

Shri Arun Balakrishnan 21.03.2019 20.03.2020 CompletionofTenure

INDEPENDENT DIRECTORS:AsprovidedunderSchedule IVof theCompaniesAct,2013andalsoasperRegulation25(6)of theSEBI(LODR)Regulations,2015,separatemeetingsofIndependentDirectorswereheldonMarch13,2020andMay29,2020.ItisherebyconfirmedthatintheopinionoftheBoard,theIndependentDirectorsfulfilstheconditionsspecifiedintheSEBI(LODR)Regulations,2015andareindependentoftheManagement.SCIbeingaGovernmentCompany,alltheDirectorsontheBoardofSCIareappointedbyMinistryofShipping,GovernmentofIndia.NoIndependentDirectorhasresignedbeforetheexpiryoftheirtermduringtheFY2019-2020.



DETAILS OF FAMILIARISATION PROGRAMME:InthewakeofCOVID-19outbreakinthecountryandtheGovernmentadvisoryagainstlargepublicgatherings,OrientationProgrammeforCapacityBuildingofDirectorsofCPSEsscheduledon19th-20thMarch2020atScope,NewDelhiandon21stMarch2020atDPE,NewDelhifornewlyappointeddirectorsontheBoardofCompanywerepostponedtillfurthernotice.ThedetailsoffamiliarisationprogrammeimpartedtoIndependentDirectorsaredisclosedonSCIwebsitewww.shipindia.com Investors Information for shareholders DisclosuresunderListingRegulation.List of Directors’ Core Skills / Experience / Competencies identified by The Board – Para 2(h)(c) of Schedule V to the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015TheCompanybeinginshippingsectorandalso,beingaGovernmentCompanyhastomaintainproperco-ordinationwithvariousoperatingagenciesinthesectorsworkingincloseconnectionwithShippingaswellaswithvariousGovernmentBodies.Therefore,besidesthefunctionalexperiencelikefinance,HRandthatrelevanttoeachbusinessverticals,theCompanyalsoneedsdirectorswhohavestrongcommercialfocusintheoperatingenvironmentandindepthunderstandingofPSUs/Governmentsectorworking.Eachdirectorbringsaskillsetwhichisalignedtotheseareas.

Sr No Name Skills/ Expertise/ Competence

1 Smt H K Joshi

Over 36 years of rich and diverse experience in handling all facets of Corporate Finance, Financialaccounting,FinancialManagement,ProjectAppraisalintheOil&GassectorandinShipping.Internationalexperience in commercial negotiations, Contract Management and Joint Ventures.Strength of AuditCompliancesandCorporateGovernance.SheisFellowmemberofTheInstituteofCostAccountantsofIndiaandalsoMemberofTheInstituteofDirectors(lOD).

2 Shri Sanjay Kumar

MemberofIndianAdministrativeServices.HeldvariousseniorpositionsasJointSecretary(Institutions),DepartmentofSchoolEducation&Literacy,MinistryofHumanResourceDevelopment,GovernmentofIndia,NewDelhi.Wideexperienceinthefieldofadministration.HandledseniorpositionsinbothCentralandStateGovernment in diverse fields like Finance, Industries andCommerce, conduct of elections,district administration, economic policies and school education.

3 Shri Satinder Pal SinghMember of Indian Police Services. Held senior positions in State Government of Himachal Pradesh,MinistryofHomeAffairsandcurrentlypostedasJointSecretaryinMinistryofShipping.Wideexperienceinthefieldofadministration.

4 Smt Sangeeta Sharma Over34yearsofexperienceinallfacetsofshippingservicesespeciallyinlinercommercialoperations,project management and personnel management, strategic planning and contract negotiations.

5 Shri Rajesh Sood Over35yearsofexperienceinvarioussegmentsofMaritimefieldincludingshipbuilding,shipacquisition,technical operations and allied services.

6 Shri Surinder Pal Singh Jaggi

Over 37 years of experience of developing and implementing key HR processes,Talent Promotion,InnovativeLearningandDevelopmentInitiatives,PerformanceManagement,EmployeeInvolvementandEngagement,Shop-floorDisciplineManagementandIndustrialRelationsinMines,WorksandNon-worksareas.Also,workedinthefieldofPublicRelations,BusinessExcellence,AdministrationandLiaison.

7 Shri Atul Ubale

Over30yearsofvastexperienceinvariousfacetsofcoreshippingactivities,O&MOffShoreContracts,indigenising Indian offshore industry, Ship acquisition/ shipbuilding contracts for augmenting IndiantonnageinTechnical&OffshoreServices.Chartering&CommercialoperationsofBulkCarriers&Tankers,besidesservinginSCl'soverseasofficeinUKandSCI’sJointVentureCompanyinTehran.ExpertiseinChartering&Commercialoperations.

8 Shri Raj Kishore Tewari Former Chairman of Central Board of Direct Taxes (CBDT). Over 38years of experience in finance/accounts, administration and tax matters.

9 Dr Gautam Sinha Morethan25yearsofexperienceinSteelandEngineeringindustryfollowedby18yearsofacademicexperienceatIIT&IIM.

10 Dr P Kanagasabapathi Morethan32yearsofexperience inacademicfieldand involved instudiesw.r.t. IndianEconomics&BusinessSystem.

11 Shri Vijay Tulshiramji Jadhao

Morethan32yearsofexperienceasbusinessconsultantincorporatesector.Hasacorecompetencyinagricultural sector.



Sr No Name Skills/ Expertise/ Competence

12 CA Mavjibhai B Sorathia Over33yearsofexperienceasaPracticingCharteredAccountant.

13 Shri Pramod Kumar Panda

VastandExtensiveexperienceinReserveBankofIndia(RBI)'sonsitesupervisionandoff-sitemonitoringofcommercialbanks.Healsospecializesinfinancialregulation,bankingsupervisionandcapacitybuildingfinancialinclusion.Deeptechnicalknowledgeandunderstandingofinternalcontrols,riskmanagementincluding fraud risk management and corporate governance. He has rich experience, both at global and nationallevelsindesigninganddeliveringhighqualityandinnovativecapacitybuildingprograms.HeisassociatedwiththeCentreforAdvancedFinancialResearchandLearning(CAFRAL)'s.

Directors Shareholding NoneofthedirectorsholdsharesinSCI.Committees of the BoardToenablebetterandmorefocusedattentionontheaffairsoftheCompany,theBoardhasconstitutedthefollowingCommitteesoftheBoardasrequiredunderCompaniesAct2013andtheSEBI(LODR)Regulations,2015.Audit Committee TheCommitteewasreconstitutedon16.05.2019,subsequenttocessationofdirectorshipofShriArunBalakrishnanon21.03.2019,byResolutionpassedthroughCirculationwithDr.P.KanagasabapathiasChairmanwithDirector(Bulk&Tanker)andCAMavjibhaiBSorathiaasitsmembers.Onre-appointmentofShriArunBalakrishnanontheBoardofSCIw.e.f21.03.2019theCommitteewasagainreconstitutedbytheBoardintheirmeetingheldon09.08.2019withCAMavjibhaiBSorathiaasChairmanandDirector(Bulk&Tanker),Dr.P.KanagasabapathiandShriArunBalakrishnanasitsmembers.SubsequenttocompletionoftenureofShriArunBalakrishnanwitheffectfrom21.03.2020,theAuditCommitteewasagainreconstitutedbyResolutionpassedthroughCirculationwhereShriPramodKumarPanda,IndependentDirectorwasinductedasamemberinplaceofShriArunBalakrishnan.AllthemembersoftheCommitteeare“financiallyliterate”andhaveaccountingandfinancialmanagementexpertise.TheCompanySecretaryactsasSecretarytotheCommittee.TheDirector(Finance)andtheDirectorsinchargeofoperationsattendthemeetingsasinvitees.TheStatutoryAuditorsandInternalAuditorsalsoattendmeetingsatwhichtheAuditReports/Company’sFinancialStatementsarereviewedbytheCommittee.ThetermsofreferenceofAuditCommitteeincludeallmattersspecifiedinSection177oftheCompaniesAct,2013andRegulation18ofSEBI(LODR)Regulations,2015andtheDPEguidelinesonCorporateGovernanceforCPSEs,2010andcovers,inter-alia,overseeingCompany’sfinancialreportingprocess,adequacyofinternalcontrolsystems,reviewingfinancialrisks,managementpolicies,compliance with Accounting Standards, etc.Auditcommitteemeetingswereheldon28.05.2019,09.08.2019,06.11.2019,04.02.2020and13.03.2020duringtheFinancialYear2019-2020.TheMinutesofthemeetingsofAuditCommitteehavebeenplacedbeforetheBoardfromtimetotime.AlltherecommendationsmadebytheAuditCommitteehavebeenacceptedbytheBoardofDirectorsoftheCompany.

Name of the Director No. of Meetings

Held during the tenure of Directors Attended

CA Mavjibhai B Sorathia 5 5

Shri S V Kher as D(B&T) 2 2

Dr. P. Kanagasabapathi 5 5

Shri Arun Balakrishnan 3 2

Smt H K Joshi as D(B&T) 1 1

Shri Atul Ubale as D(B&T) 2 2

Nomination and Remuneration CommitteeConsequent uponcessationof directorship ofShriArunBalakrishnanon21.03.2019, theBoard again reconstituted theCommittee on16.05.2019byResolutionpassedthroughCirculationwithDr.GautamSinhaasChairmanandShriSatinderPalSingh,ShriVijayTulshiramjiJadhaoandCAMavjibhaiBSorathiaasitsmembers.ThetermsofreferenceofNominationandRemunerationCommitteearetotakecareof




CompliancesunderSection178ofCompaniesAct,2013andclause5.1oftheDPEguidelinesonCorporateGovernanceforCPSEs,2010andPartDofScheduleIIofSEBI(LODR)Regulations2015.TheremunerationofWhole-timeFunctionalDirectorsandotherofficersisfixedbytheMinistryofShipping,GovernmentofIndiainviewofthefactthat,SCIisaGovernmentCompanyasperSection2(45)oftheCompaniesAct,2013.DuringtheFinancialYear2019-20,themeetingsofNominationandRemunerationCommitteewereheldon28.05.2019,04.02.2020and13.03.2020.

Name of the Director No. of Meetings

Held during the tenure of Directors Attended

Dr. Gautam Sinha 3 2

Shri Satinder Pal Singh 3 1

CA Mavjibhai B Sorathia 3 3

Shri Vijay Tulshiramji Jadhao 3 3

Corporate Social Responsibility CommitteeOn25.04.2018,thecommitteewasreconstitutedwithC&MDasChairpersonoftheCommittee,ShriArunBalakrishnan,Dr.GautamSinha,ShriRajKishoreTewariandDirector(Technical&OffshoreServices)asitsmemberandDirector(Personnel&Administration)asitsmemberconvener.OncessationofdirectorshipofShriArunBalakrishnanon21.03.2019,thecommitteewasagainreconstitutedon16.05.2019byResolutionpassedthroughCirculationwiththecontinuingmembers.DuringtheFinancialYear2019-2020,thecommitteemeetingswereheldon09.08.2019,06.11.2019and04.02.2020.Share Transfer CommitteeThisCommitteeoftheBoardcomprisingofChairperson&ManagingDirectorandTwoExecutiveDirector(WholeTime),regularlyapprovesthetransferandtransmissionofsharesandotherrelatedmatters.Asandwhentheshareholdersmadelodgmentsfortransfer/re-materialisation/issueofDuplicateShareCertificate,theShareTransferCommitteeheldtheirmeetingspromptlytoeffectthetransfers.TheShareTransferCommitteeMeetingsoftheBoardwereheldon15.04.2019and16.12.2019duringtheFinancialYear2019-20.Stakeholders’ Relationship CommitteeTheCommitteecomprisedofShriRajKishoreTewariasChairmanandDr.GautamSinha,Dr.P.KanagasabapathiandDirector (Liner&PassengerServices)asitsmembers.TheStakeholders’RelationshipCommitteeMeetingwasheldon06.11.2019.ThetermsofreferenceofStakeholders’RelationshipCommitteearetotakecareofcompliancesunderSection178ofCompaniesAct,2013andPartDofScheduleIIofSEBI(LODR)Regulations2015.Grievances & their redressals: Duringtheyearunderreview,allthecomplaintswereresolved.Thecomplaintshavebeenreplied/sortedoutwithinstipulatedtimeasperSEBIRegulations.Nosharetransferswerependingattheendofthefinancialyear.Thesourcesofcomplaintsreceived and other details are given below:

Source(s) of Complaints

Pending as on 01.04.2019

Received during the year

Redressed during the year

Pending as on 31.03.2020

SEBI NIL 1 1 NIL

Stock Exchanges NIL 1 1 NIL

Other NIL 1 1 NIL

Total NIL 3 3 NIL

Compliance Officer :TheComplianceOfficerformonitoringtheShareTransferprocessandforcarryingoutotherrelatedfunctionsasperListingRegulations,isShriDipankarHaldar,ExecutiveDirector(LegalAffairs)andCompanySecretary,andcanbecontactedat: “ShippingHouse” Tel: 22772213 245,MadameCamaRoad 22024572 NarimanPoint, Fax: 22022906 Mumbai–400021. E-mail: [email protected]



Investors can lodge their complaints, if any, on [email protected] their Folionumber/DP ID-Client ID,contactnumber,e-mailIDandtheaddressforcorrespondencewhichwouldenableustorespondtothempromptly.Risk Management CommitteeAsperRegulation21oftheSEBI(LODR)Regulations,2015andamendmentsthereon,Top500ListedentitiesbasedonMarketCapitalisationasattheendoftheimmediatepreviousfinancialyearshallconstituteaRiskManagementCommittee.Consequently,thesaidprovisionsarealsoapplicabletoSCI.However,regularmeetingswereheldatManagementleveltoreviewtheriskregisterswhichwerethereafterputuptotheBoard.IntheBoardmeetingheldon03.08.2018,theRiskManagementCommitteehasbeenreconstitutedconsistingofallFunctionalDirectorsandHOD(IT).TheseniormostDirectorwouldbetheChairpersonoftheCommittee.InSeptember2019,Director(Finance)onbeingelevatedasChairpersonandManagingDirectorhasnominatedChiefFinancialOfficerasamemberintheRiskManagementCommitteewitheffect from01.11.2019 to representFinanceDivision.Subsequently themeetingof theRiskManagementCommitteewasheldon17.03.2020.TheTermsofReferenceofRiskManagementCommitteeincludes–a)TomonitorandreviewtheriskmanagementplanoftheCompanyincludingcybersecurityb)suchotherfunctionsasstipulatedbySEBI,MCA,DPEandanyotherstatutoryauthority.IntheRiskManagementCommitteeMeetingheldon17.03.2020,theBusinessContinuityPlan(BCP)wasalsodevisedtomitigaterisksduetooutbreakofCovid-19Pandemic.Unpaid Dividend DetailsAspertheprovisionsofSection124readwithSection125oftheCompaniesAct,2013,theCompanyisrequiredtotransfertheunpaiddividends remainingunclaimed/unpaid foraperiodofseven (7)years from theduedate to the InvestorEducationandProtectionFundAuthority(IEPF)setupby theCentralGovernment.Further,sharesonwhichdividendhasbeenunclaimed/unpaid foraperiodofsevenconsecutiveyearsormore,isrequiredtobetransferredtoIEPFAuthority.TheCompanyhastransferredunclaimed/unpaidamountofInterimandFinaldividendfortheFY2010-11totheIEPFAuthorityon12.04.2018and21.11.2018,respectively.ThesharesrelatingtotheaforesaiddividendamountshavealsobeentransferredtoIEPFAuthority.DetailsofsuchsharesarepostedontheSCIwebsitewww.shipindia.com Interface Investors UnclaimedShares/Dividend.TheCompanyhasmadeallthetransfersrequiredtobemadeasperActintheFY2018-19andtherearenopendingtransferstobemadeinFY2019-2020

General Body MeetingsThedate,timeandvenueofthelastthreeAnnualGeneralMeetingsoftheCompanyandthedetailsofspecialresolutionpassedthereat,aregiven below:

General Meetings Date & Time Venue Special Resolutions passed thereat

67thAGM(FY2016-17) 26.09.2017,15.30hrsRegisteredOfficeoftheCompany,Mumbai

No

68thAGM(FY2017-18) 25.09.2018,15.30hrs No

69thAGM(FY2018-19) 25.09.2019,15.30hrs Yes*

*Atthe69thAnnualGeneralMeetingwhichwasheldonSeptember25,2019oneresolutionwaspassedforRe-appointmentofShriArunBalakrishnan(DIN:0130241)asanIndependentDirectorwitheffectfromMarch21,2019ontheBoardofSCI.

Means of Communication

Publishing of Financial ResultsTheUnauditedFinancialResultsandAuditedAnnualFinancialResultsoftheCompanyarepublishedquarterlyandyearlyrespectivelyinthenewspapersandarealsomadeavailableontheCompany’swebsite.ResultsfortheFY2019-2020werepublishedinthefollowingnewspapers:

Newspaper Publications Citiesa.FinancialExpress Mumbai,Ahmedabad,Delhi,Kolkata,Hyderabad,Chennai,Bengaluru,Pune,Chandigarh,Lucknow,Kochib.Jansatta Kolkata,Chandigarh,Delhi,Lucknowc.Loksatta Mumbai

Financialresultsandofficialnewsreleasedaredisplayedonwww.shipindia.com

NopresentationwasmadetoInstitutionalInvestorsortotheAnalystsduringtheFY2019-2020.

ManagementDiscussionandAnalysisisapartofAnnualReport.


General Shareholder InformationAnnual General Meeting Date, Time & Venue:Friday,September18,2020at03:30PMISTthroughVideoConferencing(VC)/OtherAudio-VisualMeans(OAVM).Financial Year 01.04.2019to31.03.2020Book Closure Dates Friday,September11,2020toFriday,September18,2020Dividend TheBoardhasrecommendedDividendofRe.0.75/-perequityshareofRs.10/-eachoutofthefreereservesof

theCompany forconsiderationof theMembersat theensuingAnnualGeneralMeeting.TheMembers,whosenamesappear in theRegisterofMembers/ listofBeneficialOwnersasonThursday,September10,2020i.e.the date prior to the commencement of book closure, will be paid the Dividend for the financial year ended 31stMarch,2020,asrecommendedbytheBoard,ifapprovedattheAGM.IftheDividend,asrecommendedbytheBoardofDirectors,isdeclaredbytheshareholdersattheAGM,paymentofsuchDividendsubjecttodeductionoftaxatsource(TDS)willbemadewithin30daysfromthedateofdeclarationinAGM.

Listing on Stock Exchanges

BombayStockExchangeLtd.,PhirozeJeejeebhoyTowers,DalalStreet,Mumbai–400001.[StockCode:523598]NationalStockExchangeofIndiaLimited,ExchangePlaza,5thFloor,PlotNo.C/1,GBlock,Bandra-KurlaComplex,Mumbai–400051.[StockCode:SCI]

TheCompanyhaspaidtheAnnualListingFeesfortheyear2020-21totheaforesaidStockExchangeswithinthestipulatedtime.WEBSITE - TheSCIofficialwebsitewww.shipindia.com provides a separate section for investors where relevant information for share-holders is kept available. Demat-ISIN Number–INE109A01011Address for Correspondence / Registrar and Share Transfer AgentsShareholders’ correspondences should be addressed to the Company’s Share Transfer Agents at their following addresses: - M/s. Bigshare Services Pvt Ltd, 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai 400 059, Maharashtra. Tel: 022 6263 8200, Fax : 022 62638299, Email ID: [email protected], Website: www.bigshareonline.comShare Transfer SystemTheProcessingofsharetransferaredonebytheRegistrarandShareTransferAgentsandapprovedbytheShareTransferCommitteeoftheCompany.Therearenopendingsharetransferrequestsason31stMarch2020.

Dematerialization of shares and liquidityWitheffectfrom26.06.2000,tradingintheCompany’sshareswasmadecompulsoryinthedematerializedform.TheCompany’ssharesareavailablefortradinginthedepositorysystemsofbothNationalSecuritiesDepositoryLimited(NSDL)andCentralDepositoryServices(India)Limited(CDSL).Asat31stMarch2020,99.90%ofthepaid-upequitysharecapital,representing46,53,35,041shareswasheldindepositorymode.Theprocessingactivitieswithrespecttotherequestsreceivedfordematerializationarecompletedwithin15daysfromthedateofreceiptofrequest.

Foreign Exchange Risk & Hedging ActivitiesInthecourseofourbusinessactivities,financialrisksmayarisefromchangesin interestratesandexchangerates.SCIhasanaturalhedgeasmajorityofourreceiptsareeitherinforeigncurrencyoraredenominatedinforeigncurrencyandaccordinglynospecifichedgingactivities have been undertaken. TheCompany'sBoardofDirectorshasoverallresponsibilityfortheestablishmentandsupervisionoftheCompany'sriskmanagementframework.TheBoardofDirectorshasestablished theRiskManagementCommittee (RMC),which is responsible fordevelopingandmonitoring theCompany's riskmanagementpolicies.TheAuditCommitteeoverseeshowmanagementmonitorscompliancewith thecompany'sriskmanagementpoliciesandprocedures,andreviewstheadequacyoftheriskmanagementframeworkinrelationtotherisksfaced by the company.YourCompanyhasnotissuedanyGDRs/ADRs/Warrantsoranyconvertibleinstruments.YourCompanyhasnoPlant

STOCK PERFORMANCE ON BSE DURING THE FINANCIAL YEAR 2019-2020.

MonthShare Price on BSE SCI’s Closing Price

on BSE(`) BSE SensexHigh (`) Low (`)

April 2019 38.70 34.20 34.45 39031.55May 2019 36.00 30.50 32.75 39714.20June 2019 33.60 28.50 31.35 39394.64July 2019 34.85 28.10 28.60 37481.12




MonthShare Price on BSE SCI’s Closing Price

on BSE(`) BSE SensexHigh (`) Low (`)

August 2019 28.85 24.85 27.90 37332.79September 2019 44.90 27.40 43.20 38667.33October 2019 64.00 38.20 57.75 40129.05November 2019 69.80 55.65 60.45 40793.81December 2019 65.90 56.15 62.00 41253.74January 2020 64.50 58.15 59.95 40723.49February 2020 64.00 44.15 44.95 38297.29March 2020 48.75 31.65 37.55 29468.49

Graph showing the SCI share price movement vis-a-vis BSE SENSEX based on the above data:

SCI S

ha

re P

rICe

BSe SeNSeX

STOCK PERFORMANCE ON NSE DURING THE FINANCIAL YEAR 2019-2020

MonthShare Price on NSE SCI’s Closing Price

on NSE(`) NIFTYHigh (`) Low (`)

April 2019 38.70 34.10 34.40 11748.15May 2019 35.90 30.75 32.70 11922.80June 2019 33.60 28.45 31.30 11788.85July 2019 34.90 28.10 28.70 11118.00August 2019 28.90 24.80 28.00 11023.25September 2019 44.65 27.45 43.25 11474.45October 2019 64.00 38.15 57.75 11877.45November 2019 69.70 55.60 60.50 12056.05December 2019 65.95 56.25 62.00 12168.45January 2020 64.40 58.00 59.95 11962.10February 2020 64.00 44.10 45.00 11201.75March 2020 48.90 31.50 37.50 8597.75


Graph showing the SCI share price movement vis-a-vis NIFTY based on above data:

DISTRIBUTION OF SHARE HOLDING AS ON 31ST MARCH, 2020.

CATEGORYDEMAT PHYSICAL TOTAL %TO (A)

FOLIOS SHARES FOLIOS SHARES FOLIOS SHARES FOLIOS SHARES1-500 139785 18767890 70 9769 139855 18777659 88.8849 4.0313501-1000 8943 7202879 4 3300 8947 7206179 5.6863 1.54711001-2000 4360 6611892 1 1200 4361 6613092 2.7716 1.41972001-3000 1476 3784080 0 0 1476 3784080 0.9381 0.81243001-4000 624 2251152 0 0 624 2251152 0.3966 0.48334001-5000 546 2594984 0 0 546 2594984 0.3470 0.55715001-10000 830 6123610 0 0 830 6123610 0.5275 1.314610000&above 700 417998554 5 449700 705 418448254 0.4481 89.8345

TOTAL 157264 465335041 80 463969 157344 465799010 (A) 100.0000 100.0000

DISTRIBUTION OF SHAREHOLDING BY PERCENTAGE OF OWNERSHIP AS ON 31ST MARCH, 2020


SCI S

ha

re P

rICe

NIFTY


Directors’ Remuneration(Amount in `)

Name of the Director

Consolidated Salary

Perquisites, Allowances and other benefits

Post Retirement Benefit (Post Retirement Medical

Scheme)

Performance Linked Incentives

Sitting Fees Total

Capt.AnoopKumarSharma*

24,05,158 12,40,145 51,076 - - 36,96,379

Smt.HKJoshi 42,45,666 13,25,095 1,24,368 - - 56,95,129

ShriShrikantKher** 37,37,625 8,97,992 55,212 - - 46,90,829

Shri Rajesh Sood 39,23,495 10,85,558 1,01,352 - - 51,10,405

Smt. Sangeeta Sharma

41,91,317 11,05,460 1,02,777 - - 53,99,554

ShriSurinderPalSinghJaggi

32,12,277 10,63,985 1,00,912 - - 43,77,174

ShriAtulUbale*** 10,91,451 4,14,005 38,981 - - 15,44,437

Shri ArunBalakrishnan****

- - - - 1,60,000 1,60,000

Dr.GautamSinha - - - - 2,00,000 2,00,000

Dr.P.Kanagasabapathi

- - - - 3,20,000 3,20,000

ShriRajKishoreTewari

- - - - 2,80,000 2,80,000

CAMavjibhaiBSorathia

- - - - 2,80,000 2,80,000

ShriVijayTulshiramjiJadhao

- - - - 1,80,000 1,80,000

ShriPramodKumarPanda*****

- - - - 60,000 60,000

TOTAL 2,28,06,989 71,32,240 5,74,678 - 14,80,000 3,19,93,907Note: As the liabilities for gratuity and leave encashment are provided on actuarial basis for the company as a whole the amounts pertaining toKeyManagementPersonnelcompensationarenotincludedintheabovetable.*Capt.AnoopKumarSharmaceasedtobeontheBoardofSCIw.e.f11thSeptember2019**ShriShrikantKhersuperannuatedon30thSeptember2019***ShriAtulUbalehasbeenholdingthepostofDirector(B&T)w.e.f.5thDecember2019****ShriArunBalakrishnanwasceasedtobeonBoardw.e.f.20.03.2020*****ShriPramodKumarPandahasbeeninductedontheBoardw.e.f.18.10.2019.#Forindependentdirectors,thesittingfeesarefixedbytheBoardasRs.20000/-permeetingperday.TheNon-ExecutivePart-TimeEx-officioDirectors(GovernmentDirectors)donotdrawanyremuneration/sittingfeesfromthecompany.Thecriteriaforpaymentofsittingfees is displayedon theCompany’swebsitewww.shipindia.com InvestorsInformation for ShareholdersDisclosuresunder ListingRegulations.Subsidiary CompaniesTheInlandandCoastalShippingLimited(ICSL)isthewhollyownedsubsidiaryofyourCompanywhichwasincorporatedon29.09.2016.The said subsidiary is yet to start its operations. DisclosuresDuringtheyearunderreview,theCompanyhasnotenteredintofinancialorothertransactionsofmaterialnaturewithitsPromoters,theDirectors,andseniormanagementthatmayhavepotentialconflictwiththeinterestsoftheCompanyatlarge.SCIhasreceivedlettercommunicationfromNationalStockExchangeofIndiaLtd.andfromBombayStockExchangeLtd,levyingpenaltyfornon-complianceoftheprovisionsofRegulation34(1)ofSEBI(LODR)Regulations,2015fornotfilingAnnualReporttoStockExchange



withinthetime.BasedontherepresentationmadebytheCompany,boththeStockExchangeshavethereafterwithdrawnthisallegationandrefunded/adjustedthepenaltywhichwaslevied.SCIhasalsoreceivedlettersfromBSELtdandNationalStockExchangeLtdinformingpenaltyfornon-complianceofRegulation17(1)oftheSEBI(LODR)Regulations,2015i.e.appointmentofrequisitenumberofIndependentDirectorsontheBoardduringtheperiod1stApril,2019to30thSeptember,2019.Inthisregard,theCompanyhasrequestedtheStockExchangesforwaiveroffine,asSCIbeingaGovernmentCompany,thepowertoappointDirectors(includingIndependentDirectors)ontheBoardandtheirtermsandconditionsisvestedwiththeAdministrativeMinistry.TheCompanyhasalsowrittentotheAdministrativeMinistryfromtimetotimetomakenecessaryappointmentontheBoardofSCI.TheCompanyhascompliedwiththeapplicableconditionsofCorporateGovernancerequirementsasspecifiedunderRegulation17to27totheextentapplicableandclauses(b)to(i)ofsub-regulation2ofRegulation46oftheSEBI(LODR)Regulations,2015excepttotheextentofappointmentofrequirednumberofIndependentDirectorsontheBoardofSCIduringtheperiod1stApril,2019to30thSeptember,2019and21stMarch,2020onwards.ThelinkforaccessingthedetailsasprescribedunderRegulation46ofSEBI(LODR)Regulations,2015iswww.shipindia.com Investor DisclosureunderListingRegulations.Fees Paid to Statutory AuditorsTheinformationisdisclosedinnoteno26(a)ofStandaloneandConsolidatedfinancialstatementsofFY2019-2020.Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013:

Particulars Numbers

Numberofcomplaintspendingason01.04.2019 0

Numberofcomplaintsfiledduringthefinancialyear 2

Numberofcomplaintsdisposedoffduringthefinancialyear 2

Numberofcomplaintspendingason31.03.2020 0

Code of Conduct for Prevention of Insider TradingTheCompanyhasitsSCICodeofConductforPreventionofInsiderTradinginaccordancewiththeSEBI(ProhibitionofInsiderTrading)Regulations,2015.TheCodelaysdownguidelineswhichadvisethemanagementandthestaffonprocedurestobefollowedanddisclosurestobemadewhiledealingwith thesharesofCompany,andcautions themof theconsequencesofviolations. In linewith theaforesaidregulations,thepolicyisalsoavailableattheCompany’swebsitewww.shipindia.com About SCI Policies. Related Party TransactionsParticularsofcontracts/arrangementswithrelatedpartiesreferredtoinSection188(1)oftheCompaniesAct,2013,intheprescribedformAOC-2isappendedtotheDirector’sReport.ThedetailsarealsoavailableinNote30under‘NotestoFinancialstatements’.ThepolicyisavailableontheCompany’swebsitewww.shipindia.com About SCI Policies.Accounting TreatmentInpreparationoffinancialstatements,theCompanyhasfollowedtheIndianAccountingStandards(INDAS)laiddownbytheMinistryofCorporateAffairsandtherelevantprovisionsoftheCompaniesAct,2013.Proceeds from public issues, right issues, preferential issues etc.Duringtheyear2010-11,yourCompanyhadfloateda“FurtherPublicOffer”,(FPO),comprisingofa‘freshissue’of42,345,365equityshares inyourcompanyandan ‘offer forsale’of42,345,365equitysharesby thePresidentof India.TheFPOproceedsofRs.58245lakhswerefullyutilizedinthefinancialyear2011-12asperobjectoftheissueforpartfinancingofcapitalexpenditureonnineshipbuildingprojects.However,duetodelaysintheprojectsresultingindefaultbytheshipyards,duringtheperiodJanuary2014toMay2014,yourCompanyrescindedcontractsforfourshipbuildingprojectsandalso,re-negotiatedthepaymentsfortwoprojects.TheinvestmentintherescindedcontractsoutoftheFPOProceedswasRs.330.65crores.YourCompanyhasreceivedbackentiresumofRs.330.65croresfromtheshipyards.Theshareholdersvidetheresolutionpassedthroughpostalballoton11.02.2017approved theproposal to re-deploy thesaidsumofRs.330.65croresreceivedasrefund fromShipyards,towardsvariousshipbuildingprojectsincludingoffshoreassetsandliquidpetroleumgas(LPG)vesselsandalsoforacquisitionoftheanyothersuchvessels,onsuchtermsandconditionsastheBoardwoulddeemfitfromtimetotimeasmentionedintheapprovalofthepostalballot.Furtherbasedontheapprovalgrantedbytheshareholders,theCompanycanalsoutilizethesumtowardsthebalancepaymentsremainingdueforthetonnageacquisitionmadebyit.OutofthesaidamountofRs.330.65crores,anamountofRs.196.80croreshasbeenutilisedtilldateasunder–

Month & Year ` Crores Utilised for

November2016 34.37 EquityportionofPSV–SCISabarmati

April2017 63.82 EquityportionofSuezmaxTanker–DeshAbhiman



Month & Year ` Crores Utilised for

July2017 27.63 EquityportionofPSV–SCISaraswati

September2017 70.98 EquityPortionofVLGC–NandaDevi

Total Utilised till date 196.80Theun-utilisedFPOproceedsamountofRs133.85croresarekeptinfixeddeposit.Management Discussions and Analysis ReportThereportformsapartoftheDirectors’ReporttotheShareholdersanditincludesdiscussionsonmatters,asrequiredundertheprovisionsofRegulation34ofSEBI(LODR)Regulations,2015.Material Financial and Commercial Transactions of Senior Management PersonnelTherehavebeennomaterialfinancialandcommercial transactionsentered intoby theSeniorManagementPersonnelwhere theyhavepersonalinterestthatmayhaveapotentialconflictwiththeinterestoftheCompany.ThiswasalsoplacedbeforetheBoard.CEO / CFO CertificationAcertificate fromChairperson andManagingDirector andDirector (Finance)/Chief FinancialOfficer on the financial statementsof theCompanyandonthematterswhichwererequiredtobecertifiedaccordingtotheRegulation17(8)ofSEBI(LODR)Regulations,2015wasplacedbeforetheBoard.RIGHT TO INFORMATION ACT, 2005RighttoInformationAct,2005(RTI)whichbecameeffectiveon12thOctober,2005iscompliedbySCI.DetailedinformationonRTIishostedonSCIWebsiteunder following linkhttp://shipindia.com/rti/rtipage/rti-act-2005andupdated thesame from time to time.ShriDipankarHaldar,ED(LA)&CompanySecretaryhasbeenappointedasPublicInformationOfficer(PIO)todealwithqueriesreceivedfromtheIndianCitizensunderRTI.Compliance with Discretionary Requirements under Regulation 27(1) of SEBI (LODR) Regulations, 2015.Maintenance of Office and reimbursement of expenses of Non-Executive ChairpersonAstheCompanyhasanExecutiveChairperson,therequirementsofthisclausearenotapplicable.Key Managerial PersonnelShriLawrenceSerraowasappointedasChiefFinancialOfficerinplaceofSmtHKJoshiwitheffectfrom5thFebruary,2020bytheBoardofDirectorsintheirBoardMeetingheldon04.02.2020.Shareholder Rights - Declaration of financial performanceThefinancialresultsarepostedontheCompany’swebsiteimmediately.TheresultsoftheCompanyarealsopublishedinthenewspaperswithinthetimelimitsprescribedundertheSEBI(LODR)Regulations,2015.Audit ReportsYoumayliketoreferthesections‘AuditorsReport’and‘SecretarialAudit’undertheDirectors’Reportaswellas'CommentsofTheComptrollerandAuditorGeneralofIndia'forthispurpose.Reporting of Internal AuditorTheInternalAuditor,M/sAmitRayandCompanyisreportingdirectlytotheAuditCommittee,alsoallInternalAuditreportsaresubmittedtoAuditCommitteeforreviewanddirectionWhistle Blower Policy SCIhasformulatedaWhistleBlowerPolicyasapartofvigilmechanismunderSection177oftheCompaniesAct,2013andRegulation22ofSEBI(LODR)Regulations,2015.SCIhasalsolaiddownproceduresasperCentralVigilanceCommission(CVC)guidelines.ThedetailsareprovidedunderDirectors’Report.Thepolicyisavailableatthecompany’swebsitewww.shipindia.com under tab “About SCI Policies”. Duringtheyearunderreview,nopersonnelweredeniedaccesstotheAuditCommittee,inrespectofAllegedMisconductunderthesaidPolicy.Annual Performance Evaluation of the BoardBasedontheSEBIGuidancenotedated05.01.2017,apolicyonBoardPerformanceEvaluationwasformulated.EvaluationofperformanceoftheBoardasawhole,individualdirectorsandCommitteesoftheBoardwascarriedoutbasedonthesaidpolicyforFY2019-2020.Additional Disclosures as required under the Guidelines laid down by DPE1. Tothebestourknowledgeandfromthedatagatheredfromallthedepartmentstransactionswithallrelatedpartieshavebeenenteredat

arm’s length.2. PresidentialDirectivedated28.02.2018,regardingimplementationofPayrevisionofBoardlevelandbelowBoardlevelExecutivesandNon-UnionizedSupervisorsofCentralPublicSectorEnterprises(CPSEs)w.e.f.01.01.2017,wasreceivedandthesamewasimplementedinMarch2018.



AsperMinistryofShipping'sletterno.SS-11013/1/2017-SUdated22.11.2018,SCIwasdirectedforimplementationofpayrevisionofStaffMembersw.e.f01.01.2017.ThesamewasimplementedinDecember,2018.

3. Tothebestofourknowledgethereisnoitemofexpendituredebitedinbooksofaccountswhicharenotforthepurposesofthebusiness4. TherearenoexpensesincurredwhicharepersonalinnatureandincurredfortheBoardofDirectorsandTopManagement.5. Theofficeandadministrationexpensesasapercentageoftotalexpensesare6.04%inFY2019-20asagainst5.91%inFY2018-19.6. Thefinanceexpensesasapercentageoftotalexpensesis8.43%inFY2019-20asagainst8.59%inFY2018-19Annexures

I AnnualSecretarialComplianceAuditunderRegulation24AofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015

II CertificateunderRegulation34(3)oftheSEBI(ListingObligations&DisclosureRequirements)Regulations,2015

Place : Mumbai For and on behalf of the Board of DirectorsDated : 07.08.2020 Sd/-

Smt. H. K. JoshiChairperson & Managing Director & Director (Finance) Addl.charge

DECLARATION OF COMPLIANCE OF CODE OF CONDUCTBY CHAIRPERSON & MANAGING DIRECTOR

TheCompanyhasadoptedaCodeofConduct for theBoardMembersandSeniorManagementof theCompany,whichhasbeenpostedonthewebsiteoftheCompany.

ItisherebyaffirmedthatalltheDirectors&SeniorManagementpersonnelhavecompliedwiththeCodeofConductfor thefinancialyear2019-2020andaconfirmationto thiseffecthasbeenobtainedfromtheDirectors&SeniorManagement personnel.

Place : Mumbai For and on behalf of the Board of DirectorsDated : 07.08.2020 Sd/- Smt. H. K. Joshi Chairperson & Managing Director & Director (Finance) Addl.charge



Annexure IAnnual Secretarial Compliance Audit under Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

23rdJune,2020To,TheBoardofDirectorsTheShippingCorporationofIndiaLimitedShippingHouse,245,MadameCamaRoadMumbai-400021

DearSir,Annual Secretarial Compliance Report for the Financial Year 2019-20

IhavebeenengagedbyShippingCorporationofIndiaLimited(hereinafterreferredtoas‘theCompany’)bearingCIN: L63030MH1950GOI008033, whoseEquitySharesarelistedontheBSELtd.(Security Code 523598)andNationalStockExchangeofIndiaLtd.(Symbol: SCI), to conduct anauditintermsofRegulation24AofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015asamendedreadwithSEBI’sCircularNo.CIR/CFD/CMD1/27/2019dated8thFebruary,2019andtoissuetheAnnualSecretarialComplianceReportthereon.

ItistheresponsibilityofthemanagementoftheCompanytomaintainrecords,devisepropersystemstoensurecompliancewithprovisionsofall theapplicableSEBIRegulationsandcirculars/guidelines issuedthereunderfromtimetotimeandtoensurethat thesystemsareadequateandareoperatingeffectively.

OurresponsibilityistoverifycompliancesbytheCompanywithprovisionsofallapplicableSEBIRegulationsandcirculars/guidelinesissuedthereunder from time to time and issue a report thereon.

OurauditwasconductedinaccordancewiththeGuidanceNoteonAnnualSecretarialComplianceReport,issuedbytheInstituteofCompanySecretariesofIndiaandinamannerwhichinvolvessuchexaminationsandverificationsasconsiderednecessaryandadequateforthesaidpurpose.AnnualSecretarialComplianceReportisenclosed

Thanking you, Yours faithfully, Sd/- (UPENDRA C. SHUKLA) COMPANY SECRETARY FCS: 2727/CP No: 1654



SECRETARIAL COMPLIANCE REPORT OF THE SHIPPING CORPORATION OF INDIA LIMITED

FOR THE YEAR ENDED 31.03.2020I have examined:

(a) All thedocumentsandrecordsmadeavailabletomeandexplanationprovidedbyTheShippingCorporationof IndiaLimited(“the listedentity”);

(b) thefilings/submissionsmadebythelistedentitytothestockexchanges;

(c) website of the listed entity;

(d) anyotherdocument/filing,asmayberelevant,whichhasbeenreliedupontomakethiscertification;

fortheyearended31stMarch,2020(“ReviewPeriod”)inrespectofcompliancewiththeprovisionsof:

(a) theSecuritiesandExchangeBoardofIndiaAct,1992(“SEBIAct”)andtheRegulations,circulars,guidelinesissuedthereunder;and

(b) theSecuritiesContracts(Regulation)Act,1956(“SCRA”),rulesmadethereunderandtheRegulations,circulars,guidelines issuedthereunderbytheSecuritiesandExchangeBoardofIndia(“SEBI”).

ThespecificRegulations,whoseprovisionsandthecirculars/guidelinesissuedthereunder,havebeenexamined,include–(a) SecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015;

(b) SecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018- [Not Applicable since there was no reportable event during the year under review];

(c) SecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

(d) SecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,2018-[Not Applicable since there was no reportable event during the year under review];

(e) SecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014-[Not Applicable since there was no reportable event during the year under review];

(f) SecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;[Not Applicable since there was no reportable event during the year under review];

(g) SecuritiesandExchangeBoardofIndia(IssueandListingofNon-ConvertibleandRedeemablePreferenceShares)Regulations,2013- [Not Applicable since there was no reportable event during the year under review];

(h) SecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;

andcirculars/guidelinesissuedthereunder;

andbasedontheaboveexamination,IherebyreportthatduringtheReviewPeriod:(a) ThelistedentityhascompliedwiththeprovisionsoftheaboveRegulationsandcirculars/guidelinesissuedthereunderexcept in

respect of matter specified below:

Sr. No: Compliance Requirement (Regulations/Circulars/ Guidelines including specific clause)

Deviations Observations/ Remarks of the Practicing Company Secretary

1) Regulation 17 (1) (a) and (b) of SEBI(LODR)Regulations,2015–compositionoftheBoardofDirectors.

a) More than 50% of the BoardcomprisesofExecutiveDirectors;

b) Company does not have requirednumber of Independent Director ontheBoard.

Nil

(b) ThelistedentityhasmaintainedproperrecordsundertheprovisionsoftheaboveRegulationsandcirculars/guidelinesissuedthereunder in so far as it appears from my examination of those records.

(c) Thefollowingarethedetailsofactionstakenagainstthelistedentity/itspromoters/directors/materialsubsidiarieseitherbySEBIorbyStockExchanges(including under the Standard Operating Procedures issued by SEBI through various circulars) undertheaforesaidActs/Regulationsandcirculars/guidelinesissuedthereunder:



Sr.

No.

Action taken by Details of violation

Details of action taken e.g. fines, warning letter, debarment, etc.

Observations/ remarks of the Practicing Company Secretary, if any.

1) a) BSELimited

b) NationalStockExchange of IndiaLimited

Regulation17(1) SCIhasreceived lettersdated19/08/2019and 01/11/2019 from National StockExchange of India Ltd. and letters dated19/08/2019 and 31/10/2019 from BSELtd.,levyingpenaltyfornon-complianceoftheprovisionsofReg.17(1)ofSEBI(LODR)Regulations,2015[fornothavingrequirednumber of Independent Directors on theBoard]

The Company has requested the BSEand NSE and also to SEBI for waiver ofpenaltysinceSCIisaCentralPublicSectorEnterprise, appointment of Directors (bothfunctional and Independent) is done on the basis of nominations received from the Administrative Ministry i.e. the Ministry of Shipping.

2) a) BSELimited

b) NationalStockExchange of IndiaLimited

Regulation34(1) SCIhasreceivedaemaildated15/10/2019fromNationalStockExchangeofIndiaLtd.andemaildated15/10/2019fromBSELtd.,levying penalty for non-compliance of the provisions of Reg. 34(1) of SEBI (LODR)Regulations, 2015 [for not filing AnnualReporttoStockExchangewithintime]

Basedon the representationmade toSEBIandtheStockExchanges,theBSEandNSEhave withdrawn the notice and refunded/adjusted the penalty.

(d) The listed entity has taken the following actions to comply with the observations made in previous reports:

Sr. No.

Observations of the Practicing Company Secretary in the previous reports

Observations made in the secretarial compliance report for the year ended March 31, 2020

Actions taken by the listed entity, if any

Comments of the Practicing Company Secretary on the actions taken by the listed entity

1) Non-complianceofReg.17(1)ofSEBI (LODR)Reg.2015fornothaving requirednumberofIndependentDirectors.

--

As informed, the listed entity is pursuing the matter with the Administrative Ministry for appointing required number ofindependent directors within the period prescribed under Section149oftheCompaniesAct, 2013 and Reg. 25(6) oftheSEBI(LODR)Reg.2015.

Listing entity being a PSU,is dependent on the Ministry of Shipping for appointment of independent directors. As informed, the Companyis following up with the Administrative Ministries for the said appointments.

Sd/-UDIN: F002727B000369247 (UPENDRA C. SHUKLA) Place: MUMBAI COMPANY SECRETARYDate: 23.06.2020 FCS: 2727/CP No: 1654



Annexure II

Certificate under Regulation 34 (3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

TheBoardofDirectorsTheShippingCorporationofIndiaLimited,ShippingHouse,MadameCamaRoad,NarimanPoint,Mumbai400021

Ihaveexaminedtheregisters,records,books,form,returnsanddisclosuresreceivedfromtheDirectorsofTheShippingCorporationofIndiaLimited,(CIN- L63030MH1950GOI008033),havingRegisteredOfficeatShippingHouse,MadamCamaRoad,NarimanPoint,Mumbai400021(theCompany),producedbeforemebytheCompanyforthepurposeofissuingthisCertificateinpursuancetoRegulation34(3)readwithScheduleVPara-CSub-clause10(i)oftheSecuritiesExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.Inmyopinionandtothebestofmyinformationandaccordingtotheverification(includingDirectorIdentificationNumber(DIN)statusonMCAwebsite)asconsiderednecessaryandexplanationfurnishedtomebytheCompanyanditsofficers,IherebycertifythatnoneoftheDirectorsontheBoardoftheCompanyasstatedbelowforthefinancialyearendedon31stMarch,2020hasbeendebarredordisqualifiedfrombeingappointedorcontinuingasDirectorsofthecompaniesbytheSecuritiesandExchangeBoardofIndiaand/orMinistryofCorporateAffairs:

Sr. No:

Name of the Director DIN DesignationDate of Appointment in the

Company

1) Smt.H.K.Joshi 07085755 ChairpersonandManagingDirector 19/12/2019

2) ShriSanjayKumar 08683335 NonExecutiveDirector(PartTimeEx-Officio) 29/01/2020

3) ShriSatinderPalSingh 07490296 NonExecutiveDirector(PartTimeEx-Officio) 28/08/2017

4) Shri Rajesh Sood 07958667 Whole-timeDirector 29/12/2017

5) Smt. Sangeeta Sharma 07969443 Whole-timeDirector 29/12/2017

6) ShriSurinderPalSinghJaggi 08116127 Whole-timeDirector 24/04/2018

7) Shri.AtulUbale 08630613 Whole-timeDirector 05/12/2019

8) DrGautamSinha 02480182 IndependentDirector 29/09/2017

9) ShriRajKishoreTewari 07056080 IndependentDirector 29/09/2017

10) DrP.Kanagasabapathi 07986023 IndependentDirector 20/11/2017

11) ShriVijayTulshiramjiJadhao 02907818 IndependentDirector 03/07/2018

12) CAMavjibhaiBSorathia 02015175 IndependentDirector 17/12/2018

13) Shri.PramodKumarPanda 08150489 IndependentDirector 18/10/2019

Note: Ensuringtheeligibilityforappointment/continuingasDirectorontheBoardistheresponsibilityofthemanagementoftheCompany.Myresponsibilityistoexpressanopinionbasedonverificationofdocuments/informationavailabletome.ThiscertificateisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

Sd/-UDIN:F002727B000369126 (UPENDRA C. SHUKLA) Place: MUMBAI COMPANY SECRETARYDate: 23/06/2020 FCS: 2727/CP No: 1654



INDEPENDENT AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCEREQUIREMENTS UNDER SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

To The Members ofThe Shipping Corporation of India Limited1. ThisCertificateisissuedinaccordancewiththetermsofourengagementletterdatedSeptember03,2019.2. WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyTHESHIPPINGCORPORATIONOFINDIALIMITED(‘theCompany’), for theyearendedonMarch31,2020asstipulated inRegulations17 to27andclauses (b) to (i)of regulation46 (2)andparagraphsC,DandEofScheduleVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(“ListingRegulations”)andasstipulatedintheguidelinesonCorporateGovernanceforCentralPublicSectorEnterprisesissuedbyDepartmentofPublicEnterprises,GovernmentofIndia

Management’s Responsibility3. TheManagementisresponsibleforensuringthattheCompanycomplieswiththeconditionsofCorporateGovernance.Thisresponsibility

also includes the design, implementation and maintenance of internal controls and procedures to ensure compliance with the conditions oftheCorporateGovernancestipulatedintheListingRegulations.

Auditor’s Responsibility4. Ourresponsibilityislimitedtoexaminingtheproceduresandimplementationthereof,adoptedbytheCompanyforensuringthecomplianceof theconditionsof theCorporateGovernance. It isneitheranauditnoranexpressionofopinionon thefinancialstatementsof theCompany.

5. Wehaveexamined thebooksofaccountandother relevant recordsanddocumentsmaintainedby theCompanyfor thepurposeofprovidingreasonableassuranceonthecompliancewithCorporateGovernancerequirementsbytheCompany.

6. WeconductedourexaminationinaccordancewiththeGuidanceNoteonCertificationofCorporateGovernanceissuedbytheInstituteoftheCharteredAccountantsofIndia(“ICAI”),theStandardsonAuditingspecifiedunderSection143(10)oftheCompaniesAct,2013,insofarasapplicableforthepurposeofthiscertificateandaspertheGuidanceNoteonReportsorCertificatesforSpecialPurposesissuedbytheICAIwhichrequiresthatwecomplywiththeethicalrequirementsoftheCodeofEthicsissuedbytheICAI.

7. WehavecompliedwiththerelevantapplicablerequirementsoftheStandardonQualityControl(SQC)1,QualityControlforFirmsthatPerformAuditsandReviewsofHistoricalFinancialInformation,andOtherAssuranceandRelatedServicesEngagementsissuedbyICAI

Opinion8. Basedonourexamination,asabove,andtothebestoftheinformationandexplanationsgiventousandrepresentationsprovidedbythemanagement,wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedinregulations17to27andclauses(b)to(i)ofregulation46(2)andparagraphsC,DandEofScheduleVoftheListingRegulationsduringtheyearendedMarch31,2020,subjecttothefollowing:

TheCompanyhasnotcompliedwiththerequirementofRegulation17(1)(b)ofthelistingRegulationswithregardtothecompositionofatleast50%IndependentDirectors,exceptfortheperiodof01.10.2019to20.03.2020(bothdaysinclusive)duringwhichthenumberofIndependentdirectorscomprisedof50%ofthetotalstrengthoftheboard.

9. WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

Restriction on use10.ThecertificateisaddressedandprovidedtothemembersoftheCompanysolelyforthepurposetoenabletheCompanytocomplywiththerequirementoftheListingRegulations,anditshouldnotbeusedbyanyotherpersonorforanyotherpurpose.Accordingly,wedonotacceptorassumeanyliabilityoranydutyofcareforanyotherpurposeortoanyotherpersontowhomthiscertificateisshownorintowhosehandsitmaycomewithoutourpriorconsentinwriting.Wehavenoresponsibilitytoupdatethiscertificateforanyeventorcircumstancesoccurringafterthedateofthiscertificate.

For V. Sankar Aiyar & Co. Chartered Accountants ICAI FRN: 109208W

G SankarPartner Membership No.46050UDIN: 20046050AAAAFE6645

Place: Mumbai Date: 07-08-2020

For Haribhakti & Co. LLP.Chartered AccountantsICAI FRN: 103523W/W100048

Hemant J. BhattPartnerMembership No. 036834UDIN: 20036834AAAAEA5478 Place: Mumbai Date: 07-08-2020

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE


COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE STANDALONE FINANCIAL STATEMENTS OF THE SHIPPING

CORPORATION OF INDIA LIMITED, MUMBAI FOR THE YEAR ENDED 31 MARCH 2020

ThepreparationofStandaloneFinancialStatementsofTheShippingCorporationof IndiaLimited,Mumbai for the

yearended31March2020inaccordancewiththefinancialreportingframeworkprescribedundertheCompanies

Act,2013(Act)istheresponsibilityofthemanagementoftheCompany.TheStatutoryAuditorsappointedbythe

ComptrollerandAuditorGeneralofIndiaunderSection139(5)oftheActareresponsibleforexpressingopinionon

theFinancialStatementsunderSection143oftheActbasedonindependentauditinaccordancewiththestandards

onauditingprescribedunderSection143(10)oftheAct.ThisisstatedtohavebeendonebythemvidetheirAudit

Reportdated29May2020.

I,onbehalfoftheComptrollerandAuditorGeneralofIndia,haveconductedaSupplementaryAuditofthefinancial

statementsofTheShippingCorporationofIndiaLimited,Mumbaifortheyearended31March2020underSection

143(6)(a)oftheAct.ThisSupplementaryAudithasbeencarriedoutindependentlywithoutaccesstotheworking

papersoftheStatutoryAuditorsandislimitedprimarilytoinquiriesoftheStatutoryAuditorsandCompanypersonnel

and a selective examination of some of the accounting records.

Onthebasisofmysupplementaryauditnothingsignificanthascometomyknowledgewhichwouldgiverisetoany

commentuponorsupplementtoStatutoryAuditors’Reportundersection143(6)(b)oftheAct.

Forandonbehalfofthe

ComptrollerandAuditorGeneralofIndia

(P.V.HariKrishna)

PrincipalDirectorofAudit(Shipping)

Place:Mumbai

Date:06August2020


COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF THE

SHIPPING CORPORATION OF INDIA LIMITED, MUMBAI FOR THE YEAR ENDED 31 MARCH 2020

ThepreparationofConsolidatedFinancialStatementsofTheShippingCorporationofIndiaLimited,Mumbaifortheyearended31March2020inaccordancewiththefinancialreportingframeworkprescribedundertheCompaniesAct,2013(Act)istheresponsibilityofthemanagementoftheCompany.TheStatutoryAuditorsappointedbytheComptrollerandAuditorGeneralofIndiaunderSection139(5)readwithSection129(4)oftheActareresponsibleforexpressingopinionontheFinancialStatementsunderSection143readwithSection129(4)oftheActbasedonindependentauditinaccordancewiththestandardsonauditingprescribedunderSection143(10)oftheAct.ThisisstatedtohavebeendonebythemvidetheirAuditReportdated29May2020.

I,onbehalfoftheComptrollerandAuditorGeneralofIndia,haveconductedaSupplementaryAuditoftheConsolidatedFinancialStatementsofTheShippingCorporationofIndiaLimited,Mumbaifortheyearended31March2020underSection143(6)(a) readwith section129(4) of theAct.Weconducted aSupplementaryAudit of theStandaloneFinancialStatementsofTheShippingCorporationofIndiaLimitedbutdidnotconductSupplementaryAuditoftheFinancialStatementsofInlandandCoastalShippingLimited,IndiaLNGTransportCompany(No.1)Limited(Malta),IndiaLNGTransportCompany(No.2)Limited(Malta),IndiaLNGTransportCompany(No.3)Limited(Malta)andIndiaLNGTransportCompany(No.4)Limited(Singapore)fortheyearendedonthatdate.Further,Sections139(5) and 143(6)(b) of theAct are not applicable to India LNGTransport Company (No. 1) Limited (Malta), IndiaLNGTransportCompany(No.2)Limited(Malta),IndiaLNGTransportCompany(No.3)Limited(Malta)andIndiaLNGTransportCompany(No.4)Limited(Singapore)beingprivateentities/entitiesincorporatedinforeigncountriesunder the respective laws, for appointment of their Statutory Auditor and for conduct of Supplementary Audit. Accordingly,theComptrollerandAuditorGeneralofIndiahasneitherappointedtheStatutoryAuditorsnorconductedtheSupplementaryAuditoftheseCompanies.ThisSupplementaryAudithasbeencarriedoutindependentlywithoutaccesstotheworkingpapersoftheStatutoryAuditorsandislimitedprimarilytoinquiriesoftheStatutoryAuditorsand company personnel and a selective examination of some of the accounting records.

Onthebasisofmysupplementaryaudit,nothingsignificanthascometomyknowledgewhichwouldgiverisetoanycommentuponorsupplementtoStatutoryAuditors’Reportundersection143(6)(b)oftheAct.

Forandonbehalfofthe

ComptrollerandAuditorGeneralofIndia

(P.V.HariKrishna)

PrincipalDirectorofAudit(Shipping)

Place:Mumbai

Date:06August2020


INDEPENDENT AUDITOR’S REPORT

To the Members of The Shipping Corporation of India limitedReport on the Audit of the Standalone Ind AS Financial StatementsOpinionWe have audited the accompanying Standalone Ind AS FinancialStatements of The Shipping Corporation of India Limited (“theCompany”),whichcomprisetheBalanceSheetasatMarch31,2020,theStatementofProfit andLoss (includingOtherComprehensiveIncome),theStatementofChangesinEquityandtheStatementofCashFlowsfortheyearendedandnotestotheStandaloneIndASFinancialStatementsincludingasummaryofsignificantaccountingpolicies and other explanatory information (hereinafter referred to as “StandaloneIndASFinancialStatements”).In our opinion and to the best of our information and according to the explanationsgiventous,theaforesaidStandaloneIndASFinancialStatements give the information required by the Companies Act,2013 (“the Act”) in themanner so required and give a true andfair view in conformity with the accounting principles generally accepted in India including the IndianAccountingStandards(“IndAS”)prescribedundersection133oftheAct,ofthestateofaffairsof theCompanyasatMarch31,2020, itsprofit (includingothercomprehensive income),changes inequityand itscashflowsforthe year ended on that date.

Basis for OpinionWe conducted our audit in accordance with Standards onAuditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Ind ASFinancialStatementssectionofourreport.Weareindependentof theCompany inaccordancewith theCodeofEthics issuedbythe Institute of Chartered Accountants of India (“ICAI”) togetherwith the ethical requirements that are relevant to our audit of theStandaloneIndASFinancialStatementsundertheprovisionsoftheAct and Rules thereunder, andwe have fulfilled our other ethicalresponsibilitiesinaccordancewiththeserequirementsandtheCodeofEthics.Webelieve that theauditevidencewehaveobtained issufficientandappropriatetoprovideabasisforouropinionontheStandaloneIndASFinancialStatements.Key Audit Matters Key audit matters are those matters that, in our professionaljudgment,wereofmostsignificanceinourauditoftheStandaloneInd AS Financial Statements of the current year. These matterswere addressed in the context of our audit of the Standalone Ind AS Financial Statements as awhole, and in forming our opinionthereon, and we do not provide a separate opinion on these matters. Wehavedeterminedthemattersdescribedbelowtobethekeyauditmatters to be communicated in our report.

Sr. No. Key Audit Matter Auditor’s Response1 Accuracy of recognition, measurement, presentation and

disclosures of revenues and other related balances in view of adoption of Ind AS 115 “Revenue from Contracts with Customers” (revenue accounting standard)The application of the revenue accounting standard involves certain key judgments relating to identification of distinctperformance obligations, determination of transaction price of the identified performance obligations, the appropriateness ofthe basis used tomeasure revenue recognized over a period.Additionally, revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheetdate.(ReferNoteNo33totheStandaloneFinancialStatements)

WeassessedtheCompany’sprocesstoidentifytheimpactofadoption of the revenue accounting standard.Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:• Evaluated the design of internal controls relating to

Implementation of the revenue accounting standard.• Selectedasampleofcontinuingandnewcontracts,and

tested the operating effectiveness of the internal control, relating to identification of the distinct performanceobligations and determination of transaction price.

• Selectedasampleofcontinuingandnewcontractsandperformed the following procedures:

Read, analyzed and identified the distinct performanceobligations in these contracts.

Compared these performance obligations with thatidentifiedandrecordedbytheCompany.

Considered the terms of the contracts to determine thetransaction price including any variable consideration to verify the transaction price used to compute revenue.

In respect of samples relating to fixed price contracts,progress towards satisfaction of performance obligation usedtocomputerecordedrevenuewasverified

Sample of revenues disaggregated by type and service offerings was tested with the performance obligations specifiedinthe underlying contracts.



Sr. No. Key Audit Matter Auditor’s Response2. Impairment testing of Fleets in line with the Ind AS 36

The Company at every reporting period, assesses marketconditionsandotherspecificriskstodetermineifthereareanytriggering events that may be indicators of an impairment of the fleets.The impairment loss, ifany, is recognized in theStatementofProfitandLossintheperiodinwhichimpairmenttakesplace.TheprovisionforimpairmentoffleetsisidentifiedasaKeyAuditMatterasit involvessignificantmanagementassumptionsandjudgment to assess the market conditions and other associated risks in assessment of provisions.

Wehaveobtainedthemanagement’sviewtogainanoverviewofthetriggeringevents,marketconditions(present&future)operational factors and other key assumptions supporting the impairment assessment.WehaveperformedthefollowingproceduresforverificationofimpairmenttestingofFleets:• Understanding the process for collecting the inputs

into the valuation models to evaluate the design of the Company’s controls over its impairment assessmentand challenged the appropriateness of the inputs and significant assumptions, including the cash flowprojections, discount rate, costs and expenses.

• Re-performed the valuation calculations; benchmarkedthe valuation model with generally accepted valuation techniques; compared historical estimates used bymanagement to actual results.

3. The direct access of certain overseas foreign agents to fund collected on account of freight and other charges.LinerdivisionoftheCompanyhasbeencarryingoutitsvesselsoperations and container marketing activities at various ports in India and abroad through its agency network. Agents perform various activities such as marketing, booking, clearing of cargo, portcallsofvessels&alsocollectionoffreightonbehalfoftheCompany.The Company depends on its agents for operation of Linersegment business.Since all the activities are performed by the agents, there is requirementoffunds&collectionofincomeisdonedirectlybyagentsandsubsequentlyremittedtotheCompany.ThereforeitinvolvesariskonthepartoftheCompanyandhenceisidentifiedasaKeyAuditMatter.

We assessed the Company’s process to evaluate Agentson timely basis to identify the impact of on the revenue and collection of funds.• TheCompanyhasconductedauditbyexternalCAFirms

of major overseas agents to whom direct access to collectionof fundonaccountof freight&otherchargeshave been given by the Company in order to verify theperformance and inspection of evidence in respect of operations.

• The Company has also obtained bank guarantee frommajor agents & also reviewed the same periodically toconfirmitsvalidityandcompletenesswithrespecttoriskexposure on revenue due to direct access to agents.

4. Evaluation of Dry Docking Cost & Repair Expenses of Vessels:- AsperIndAS16‘Property,PlantandEquipment’,subsequentcosts like expenditure onmajor maintenance refits or repairsincluding planned dry-dock are included in the asset’s carrying amountorrecognizedasaseparateasset,asappropriate,whenthey meet the recognition criteria, i.e., only when it is probable thatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompanyandthecostoftheitemcanbemeasuredreliably.A shippingcompanyonperiodicbasis is required tobring allships into dry dock for major inspection and overhaul. Overhaul expendituremightatfirstsightseemtobearepairtotheshipsbut it is actually a cost incurred in getting the ship back into seaworthy condition.The dry docking cost and repairs expenses of vessels are considered as Key Audit Matter as it requires managementjudgment to assess future economic benefits from theexpenditure incurred and the measurement of the cost.

Toassesstherecognitionofdrydockingcost&repaircost,weperformed the following process:• Evaluated the design of internal controls relating to the

major cost like repairs& dry-dockingwhich are of twotypesi.e.planneddry-dock&emergencydry-dock.

• Selected a sample to verify the operating effectivenessof the internal control, relating to identification of thedistinction between the two cost i.e. repair & dry-dockcost.

• Tested the relevant information technology systems’relatingtotheDry-dock&Fleetrelatedexpenses.



Sr. No. Key Audit Matter Auditor’s Response5. Provisions for taxes and Contingent Liabilities

TheCompany is involved in various taxes and other disputesfor which final outcomes cannot be easily predicted andwhich could potentially result in significant liabilities. Theassessment of the risks associated with the litigations is based on complex assumptions, which require the use of judgmentand such judgment relates, primarily, to the assessment of the uncertainties connected to the prediction of the outcome of the proceedings and to the adequacy of the disclosures inthe financial statements. Because of the judgment required,the materiality of such litigations and the complexity of the assessment process, the area is a key matter for our audit.

Our audit procedure in response to this key Audit Matter included, among others,• Assessment of the process and relevant controls

implemented to identify legal and tax litigations, and pending administrative proceedings.

• Assessment of assumptions used in the evaluation ofpotential legal and tax risks performed by the legal and tax department of the Company considering the legalprecedence and other rulings in similar cases.

• Inquirywith the legalandtaxdepartmentsregarding thestatusofthemostsignificantdisputesandinspectionofthe key relevant documentation.

• Analysis of opinion received from the experts whereavailable.

• Reviewoftheadequacyofthedisclosuresinthenotestothefinancialstatements.

• Wehaveobservedthattheprovisionfortaxestimatedasabove including the deferred tax, has not resulted in material deviation from the applicable rate of tax after considering the exemptions, deductions and disallowances as per the provisions of the Income Tax Act.

Emphasis of MatterWe draw attention to the following matters in the notes to theStandaloneIndASFinancialStatements:(i) We draw attention to Note No. 42 to the Standalone Ind AS

Financial Statements, which states that the Comptroller andAuditor General of India (“C&AG”) raised an observationrelating to payment of Performance Related Pay (PRP) ofRs. 11.03 crores for the financial year 2014-15with respectto two issues i.e. identificationofCoreandNonCore incomeas per DPE guidelines and observing “Bell Curve” approachin PRP calculation. Regarding identification of Core and NonCoreincome,theCompanyhastakentheissuefordeliberationin theNominationandRemunerationCommitteeof theBoard.TheCommitteehasendorsedthestandtakenbytheCompanyoncertain itemsandadvised theCompany to take thematterforward.

(ii)We draw attention to Note No. 45 to the Standalone Ind ASFinancialStatements,whichstatesthattradereceivables,tradepayablesanddepositsaresubjecttothebalanceconfirmations,subsequent reconciliation and consequential adjustments, ifany.

Ouropinionisnotmodifiedinrespectofthesematters.Other InformationThe Company’s Board of Directors is responsible for the otherinformation. The other information comprises the information includedintheDirector’sReport includingAnnexurestoDirector’sReport,BusinessResponsibilityReport,CorporateGovernanceandShareholder’s Information, but does not include the Standalone Ind

ASFinancialStatements,andourauditor’sreportthereon.Our opinion on the Standalone Ind AS Financial Statements doesnot cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the Standalone Ind AS FinancialStatements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistentwiththeStandaloneIndASFinancialStatementsorourknowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are requiredtoreportthatfact.Wehavenothingtoreportinthisregard.Responsibilities of Management and Those Charged with Governance for the Standalone Ind AS Financial StatementsThe Company’s Board of Directors is responsible for themattersstated insection134(5)of theActwithrespect to thepreparationoftheseStandaloneIndASFinancialStatementsthatgiveatrueandfairviewof thefinancialposition,financialperformance(includingothercomprehensiveincome),changesinequityandcashflowsoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyaccepted in India, including Ind AS prescribed under section 133oftheAct,readwiththeCompanies(IndianAccountingStandards)Rules, 2015, as amended. This responsibility also includesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheCompanyand for preventing and detecting frauds and other irregularities;



selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; anddesign, implementation andmaintenance of adequate internalfinancial controls, that were operating effectively for ensuring theaccuracy and completeness of the accounting records, relevant to thepreparationandpresentationoftheStandaloneIndASFinancialStatements that give a true and fair view and are free from material misstatement, whether due to fraud or error.InpreparingtheStandaloneIndASFinancialStatements,managementisresponsibleforassessingtheCompany’sabilitytocontinueasagoing concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to ceaseoperations, or has no realistic alternative but to do so.Those Board of Directors are also responsible for overseeing theCompany’sfinancialreportingprocess.Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial StatementsOur objectives are to obtain reasonable assurance about whether theStandaloneIndASFinancialStatementsasawholearefreefrommaterial 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 reasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthisStandaloneIndASFinancialStatements.As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. Wealso:• Identifyandassesstherisksofmaterialmisstatementofthe

StandaloneIndASfinancialstatements,whetherduetofraudor error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient andappropriate 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 theaudit in order to design audit procedures that are appropriate inthecircumstances.Undersection143(3)(i)oftheAct,weare also responsible for expressing our opinion on whether the Company has adequate internal financial controls withreference to financial statements inplaceand theoperatingeffectiveness of such controls.

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

• Concludeontheappropriatenessofmanagement’suseofthegoing concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists relatedtoeventsorconditionsthatmaycastsignificantdoubton the Company’s ability to continue as a going concern.If we conclude that a material uncertainty exists, we are requiredtodrawattentioninourauditor’sreporttotherelateddisclosures in the Standalone Ind AS Financial Statementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditionsmaycausetheCompanytoceasetocontinueasagoing concern.

• Evaluate the overall presentation, structure and content ofthe Standalone Ind AS Financial Statements, including thedisclosures, and whether the Standalone Ind AS FinancialStatements 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 ininternal control that we identify during our audit.Wealsoprovide thosechargedwithgovernancewith a statementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence, 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.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthestandaloneIndASfinancialstatementsofthecurrentyearandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’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 theadverseconsequencesofdoingsowould reasonablybe expected to outweigh the public interest benefits of suchcommunication. Other MatterThe audit of Standalone Ind AS Financial Statements for the yearended March 31, 2019, was carried out and reported by jointauditors,G.D.Apte&CoandA.Bafna&Co,videtheirunmodifiedauditreportdatedMay28,2019whosereporthasbeenfurnishedtous by the management and which has been relied upon by us for the purposeofourauditofthestandaloneIndASfinancialstatements.Ouropinionisnotmodifiedinrespectofthismatter.Report on Other Legal and Regulatory Requirements(1) Asrequiredby theCompanies(Auditor’sReport)Order,2016

(“the Order”) issued by the Central Government of India intermsofsection143(11)oftheAct,wegivein“Annexure1”,astatementonthemattersspecifiedinparagraphs3and4oftheOrder, to the extent applicable.


(2) Asrequiredbysection143(3)oftheAct,wereportthat:a. We have sought and obtained all the information and

explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

b. Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromour examination of those books;

c. The Balance Sheet, the Statement of Profit and Loss(including Other Comprehensive Income), the Statementof Changes in Equity and the Statement of Cash Flowsdealt with by this report are in agreement with the books of account;

d. In our opinion, the aforesaid standalone Ind AS financialstatements comply with the Ind AS prescribed under section 133 of the Act readwith the Companies (IndianAccountingStandards)Rules,2015,asamended;

e. In our opinion and to the best of our information and according to the explanations given to us, the Companybeing a Government Company, section 164(2) relatedto disqualifications for appointment of directors is notapplicabletoitinaccordancewithexceptionsmodificationsandadaptationsprovidedvideNotificationNo.G.S.R.463(E) dated June 5, 2015 issued byMinistry of CorporateAffairs(the“Notification”).

f. With respect to the adequacy of the internal financialcontrols with reference to financial statements of theCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportin“Annexure2”;

g. With respect to the other matter to be included in theAuditor’s Report in accordancewith the requirements of

section197(16)oftheAct: In our opinion and to the best of our information and

according to the explanations given to us, the Companybeing a Government Company, section 197 of the Actrelated to the managerial remuneration is not applicable to it in accordance with exceptions modifications andadaptationsprovidedvideNotificationNo.G.S.R.463(E)datedJune5,2015issuedbyMinistryofCorporateAffairs.

h. With respect to the other matters to be included in theAuditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, in ouropinion and 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 standaloneInd AS financial statements – Refer Note 28 to thestandaloneIndASfinancialstatements;

(ii) The Company has made provision, as requiredunder the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;

(iii) There were no amounts whichwere required to betransferred to the Investor Education andProtectionFundbytheCompany.

3. As required under sub section (5) ofSection143of theAct,incaseoftheGovernmentCompany,wegiveinthe“Annexure3” a statement on thematters specified in the directions andsub-directions issuedbyofficeof theComptrollerandAuditorGeneralofIndia.

For V. Sankar Aiyar & Co., For Haribhakti & Co. LLP,Chartered Accountants Chartered AccountantsICAI FRN: 109208W ICAI FRN: 103523W/W100048

G Sankar Hemant J. BhattPartner PartnerMembership No. 46050 Membership No. 036834UDIN: 20046050AAAADB7091 UDIN: 20036834AAAABA7350

Place: Mumbai Place: MumbaiDate: May 29, 2020 Date: May 29, 2020



[Referredtoinparagraph1under‘ReportonOtherLegalandRegulatoryRequirements’intheIndependentAuditor’sReportofevendatetothemembersofthecompanyontheStandaloneIndASFinancialStatementsfortheyearendedMarch31,2020]BasedontheauditproceduresperformedforthepurposeofreportingatrueandfairviewontheStandaloneIndASFinancialStatementsof theCompanyandtaking intoconsiderationthe informationandexplanationsgiventousandthebooksofaccountandotherrecordsexamined by us in the normal course of audit, we report that:(i) (a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationoffixedassets.

(b) Aspertheinformationandexplanationsgiventous,thefixedassetshavebeenphysicallyverifiedbythemanagementatreasonableintervals,whichinouropinionisreasonable,havingregardtothesizeoftheCompanyandthenatureofitsassets.

(c) According to the informationandexplanationgiven tousandon thebasisofourexaminationof recordsof theCompany, thetitledeedsofimmovablepropertiesrecordedasfixedassetsinthebooksofaccountoftheCompanyareheldinthenameoftheCompanyexceptforthedetailsgivenbelow,forwhichnorecordsweremadeavailabletousforverificationandinrespectofsomeproperties the written agreements are not on the traditional stamp papers, however, such agreements are written on green ledger papers and duly signed by the all concerned parties.

ANNEXURE 1 TO THE INDEPENDENT AUDITOR’S REPORT

(Amount in lakhs)

Land/ Building Total number of Flats / Garage

Leasehold/ Freehold/Tittle deeds

Gross Block as on March 31, 2020

Net Block as on March 31, 2020 Remarks

GONDAVALIAPTS 10 NotAvailable 18.79 7.83Sharecertificates

are available.

CHITRAKOOTAPTS 2 NotAvailable 4.57 0.78Sharecertificates

are available.

KAVITAAPTS 1 NotAvailable 2.62 1.09Sharecertificates

are available.

LANDSENDAPTS 1 NotAvailable 2.76 0.55Sharecertificates

are available.

AJANTAAPTS 1 NotAvailable 2.35 0.98Sharecertificates

are available.

RAJHANSAPTS 1 NotAvailable 1.47 0.15Sharecertificates

are available.

SOMMERSETHOUSE 1 NotAvailable 4.20 0.84Sharecertificates

are available.

ANITAAPTS(Garage) 1 NotAvailable 0.12 0.02Sharecertificates

are available.

ASHARYAAPTS(Garage) 1 NotAvailable 0.16 0.01Sharecertificates

are available.

SATNAMAPTS(Garage) 1 NotAvailable 0.10 0.03Sharecertificatesare not available.

VIJAYAPTS(Garage) 3 NotAvailable 0.70 0.22Sharecertificatesare not available.

(ii) Theinventoryhasbeenphysicallyverifiedbythemanagementduringtheyear.Inouropinion,thefrequencyofverificationisreasonable.Asinformed,nomaterialdiscrepancieswerenoticedonphysicalverificationcarriedoutduringtheyear.

(iii) TheCompanyhasgrantedloans,securedorunsecured,tocompanies,firms,LimitedLiabilityPartnershipsorotherpartiescoveredintheregistermaintainedundersection189oftheAct.(a) ThetermsandconditionsoftheaforesaidloansgrantedbytheCompanyarenotprejudicialtotheinterestoftheCompany.(b) In case of loans granted, the terms of arrangement do not stipulate any repayment schedule and the loans are repayable on demand

subjecttotheapprovalfromothershareholders.Paymentofinteresthasbeenstipulated,andthereceiptsthereofareregular,exceptincaseofloangrantedtojointventuresIndiaLNGTransportCo.No.1Ltd,IndiaLNGTransportCo.No.2Ltd,IndiaLNGTransportCo.No.3Ltd&IndiaLNGTransportCo.No.4PvtLtd,interestamountingto`34.10Lakhs,32.11lakhs,266.69lakhsand8.36lakhsrespectivelyfortheperiodfromDecember30,2019toMarch30,2020dueonMarch31,2020hasnotbeenreceivedbytheCompany.


(c) In respect of the aforesaid loans, there are no overdue amount for more than ninety days in respect of the loans granted except, inrespectofinterestfortheperiodfromDecember28,2018toDecember29,2019amountingto`1,060.42Lakhsand`33.25LakhsinrespectofjointventurecompanyIndiaLNGTransportCo.No.3LtdandIndiaLNGTransportCo.No.4PvtLtdrespectivelywhichhasnotbeenreceivedbytheCompanyandthesamehasbeencompoundedintoloan.

(iv) Basedoninformationandexplanationgiventous,theCompanyhasnotadvancedloanstotheDirectors/toaCompanyinwhichtheDirectorsareinterestedtowhichtheprovisionsofsection185oftheActarenotapplicabletotheCompany.Further,theCompanyhascompliedwiththeprovisionsofsection186oftheAct.

(v) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotacceptedanydepositsfromthepublicwithintheprovisionsofsections73to76oftheActandtherulesframedthereunder.Therefore,paragraph3(v)oftheOrderisnotapplicabletotheCompany.

(vi) TheCentralGovernmenthasnotprescribedthemaintenanceofcostrecordsforanyoftheproductsoftheCompanyundersub-section(1)ofsection148oftheActandtherulesframedthereunder.Therefore,paragraph3(vi)oftheOrderisnotapplicabletotheCompany.

(vii) (a) Accordingtotheinformationandexplanationgiventous,theCompanyisgenerallyregularindepositingwithappropriateauthorities,

undisputedstatutoryduesincludingprovidentfund,employees’stateinsurance,incometax,goodsandservicestax(GST),customsduty, cess and any other material statutory dues applicable to it. However, there has been slight delays in certain months while depositingprovident fund in respectoffleetpersonnel.And therewerenoundisputedamountspayable in respectofprovidentfund,employees’stateinsurance,incometax,GST,customsduty,cessandanyothermaterialstatutoryduesapplicabletoit,wereoutstanding, at the year end, for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us, the dues outstanding with respect to, income tax, sales tax, service tax, value added tax, goods and service tax, customs duty, excise duty on account of any dispute, are as follows:

(Amount in ` lakhs)

Name of the statute Nature of duesThe Forum /

Authority where Dispute is pending

Period to which the amount relates

Sum of Amount Involved

Sum of Amount Paid Under Protest

Sum of Unpaid Amount

FinanceAct,1994 Service Tax CESTAT April09toSep2015 1,57,421.64 3,099.00 1,54,322.64

FinanceAct,1994 Service TaxCommissioner

(Appeals)Oct15toJun17 116.26 4.00 112.26

FinanceAct,1994 Service TaxJoint

Commissioner,LTUOct15toJun17 401.96 18.00 383.96

APVATAct,2005 VAT CTO 2011-12 10.00 0 10.00

Sales Tax VATBombayHighCourt

1993-94,1994-95&2017-18

131.00 95.00* 36.00

IncomeTaxAct,1961 U/s195BombayHighCourt

2003-04to2005-06 9,819.59 0 9,819.59

IncomeTaxAct,1961 TaxU/s143(3)BombayHighCourt

2006-07 2,901.00 0 2,901.00

IncomeTaxAct,1961 TaxU/s143(3) ITAT Mumbai 2007-08 1,013.00 0 1,013.00

IncomeTaxAct,1961 TaxU/s143(3) ITAT Mumbai 2009-10 2,452.35 0 2,452.35

IncomeTaxAct,1961 TaxU/s143(3) CIT(A)Mumbai 2010-11 71.88 14.38 57.50

IncomeTaxAct,1961TaxU/s201(1)201(1A)

CIT(A)Mumbai 2010-11 2,170.35 109.00 2,061.35

IncomeTaxAct,1961 TaxU/s143(3) CIT(A)Mumbai 2014-15 4,134.18 851.00 3,283.18

IncomeTaxAct,1961 TaxU/s143(3) CIT(A)Mumbai 2016-17 1,639.50 0 1,639.50



*(AccordingtothedirectionsreceivedfromBombayHighCourtinrespectoffinancialyear2017-18,theCompanyhasdepositedtheamountof `95lakhswiththeProthonotaryandSeniormasterofHighCourt,untiltheissueisdecidedbytheHon’blecourt.)(viii) Accordingtotheinformationandexplanationsgiventous,theCompanyhasnotdefaultedinrepaymentofloansorborrowingsto

financialinstitutions&banks.TheCompanyhasnotissuedanydebentures.(ix) ThecompanyhasunutilizedproceedsamountingtoRs.13,385lakhsraisedthroughfurtherpublicoffer(FPO)intheearlieryears.

Duringtheyearalsocompanyhasnotutilizedthesameandtheunutilizedproceedsarekeptinfixeddeposits.Inouropinion,thetermloans have been applied for the purpose for which those have been raised.

(x) DuringthecourseofourexaminationofthebooksandrecordsoftheCompany,carriedoutinaccordancewiththegenerallyacceptedauditing practices in India, and according to the information and explanations given to us, we have neither come across any instance offraudbytheCompanyoranyfraudontheCompanybyitsofficersoremployees,noticedorreportedduringtheyear,norhavewebeen informed of any such instance by the management.

(xi) TheCompanyisaGovernmentcompany,andtheprovisionsofsection197readwithScheduleVtotheActarenotapplicabletotheCompany.Accordingly,paragraph3(xi)oftheOrderisnotapplicabletotheCompany.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore,paragraph3(xii)oftheOrderisnotapplicabletotheCompany.

(xiii) Accordingtotheinformationandexplanationgiventous,AlltransactionsenteredintobytheCompanywiththerelatedpartiesareincompliancewithsections177and188ofAct,whereapplicable,andthedetailshavebeendisclosedinthestandaloneIndASfinancialstatementsasrequiredbytheapplicableaccountingstandards.

(xiv) TheCompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlyconvertibledebenturesduringtheyearunderreview.Therefore,paragraph3(xiv)oftheOrderisnotapplicabletotheCompany.

(xv) TheCompanyhasnotentered intoanynon-cashtransactionswithdirectorsorpersonsconnectedwith themduringtheyearandtherefore,paragraph3(xv)oftheOrderisnotapplicabletotheCompany.

(xvi) Accordingtotheinformationandexplanationgiventous,theCompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct,1934.


G Sankar Hemant J. BhattPartner PartnerMembership No.46050 Membership No. 036834UDIN: 20046050AAAADB7091 UDIN: 20036834AAAABA7350





[Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory Requirements’ section in our Independent Auditor’s Report of even date to the members of The Shipping Corporation of India Limited on the Standalone Ind AS Financial Statements for the year ended March 31, 2020]Report on the Internal Financial Controls with reference to Financial Statements under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 (“the Act”)WehaveauditedtheinternalfinancialcontrolswithreferencetoFinancialStatementsofTheShippingCorporationofIndiaLimited(“TheCompany”)asofMarch31,2020inconjunctionwithourauditoftheStandaloneIndASFinancialStatementsoftheCompanyfortheyearended on that date.Management’s Responsibility for Internal Financial ControlsTheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontrolwithreferencetofinancialstatementscriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)issuedbytheInstituteofCharteredAccountantsof India (“ICAI”). These responsibilities include thedesign, implementation andmaintenanceof adequate internal financialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductof itsbusiness, includingadherencetoCompany’spolicies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheAct.Auditors’ ResponsibilityOurresponsibilityistoexpressanopinionontheCompany'sinternalfinancialcontrolswithreferencetofinancialstatementsbasedonouraudit.Weconductedouraudit inaccordancewiththeGuidanceNoteandtheStandardsonAuditingspecifiedundersection143(10)oftheActtotheextentapplicabletoanauditofinternalfinancialcontrols,bothissuedbytheICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolswithreferencetofinancialstatementswasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinall material respects.Ouraudit involvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolswithreferencetofinancialstatementsandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolswithreferencetofinancialstatementsincludedobtaininganunderstandingofinternalfinancialcontrolswithreferencetofinancialstatements,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectiveness of internal controls based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolswithreferencetofinancialstatements.Meaning of Internal Financial Controls with reference to Financial StatementsAcompany'sinternalfinancialcontrolwithreferencetofinancialstatementsisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany'sinternalfinancialcontrolwithreferencetofinancialstatementsincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only inaccordancewithauthorisationsofmanagementanddirectorsof thecompany;and (3)provide reasonableassurance regardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany'sassetsthatcouldhaveamaterialeffectonthefinancialstatements.Inherent Limitations of Internal Financial Controls with reference to Financial StatementsBecauseoftheinherentlimitationsofinternalfinancialcontrolswithreferencetofinancialstatements,includingthepossibilityofcollusionorimproper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of anyevaluationoftheinternalfinancialcontrolswithreferencetofinancialstatementstofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrolswithreferencetofinancialstatementsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliance with the policies or procedures may deteriorate.Qualified opinionAccordingtotheinformationandexplanationsgiventousandbasedonouraudit,thefollowingmaterialweaknesseshavebeenidentifiedin



theoperatingeffectivenessoftheCompany’sinternalfinancialcontrolswithreferencetofinancialstatementsasatMarch31,2020:a) SystemforMonitoringandClearingofVendorAccounts(IncludingAgentPrefunding)shouldbedoneontimelybasis.A‘materialweakness’isadeficiency,oracombinationofdeficiencies,ininternalfinancialcontrolswithreferencetofinancialstatements,suchthatthereisareasonablepossibilitythatamaterialmisstatementofthecompany'sannualorinterimfinancialstatementswillnotbeprevented or detected on a timely basis.Inouropinion,theCompanyhas,inallmaterialrespects,adequateinternalfinancialcontrolswithreferencetofinancialstatementsasofMarch31,2020,basedontheinternalcontrolwithreferencetofinancialstatementscriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteissuedbytheICAI,andexceptforthepossibleeffectsofthematerialweaknessesdescribedaboveontheachievementof theobjectivesof thecontrolcriteria, theCompany’s internalfinancialcontrolswithreferencetofinancialstatementswereoperatingeffectivelyasofMarch31,2020.Wehaveconsidered thematerialweaknesses identifiedand reportedabove indetermining thenature, timing, andextentof audit testsappliedinourauditoftheStandaloneIndASFinancialStatementsoftheCompanyfortheyearendedMarch31,2020,andthesematerialweaknessesdonotaffectouropinionontheStandaloneIndASFinancialStatementsoftheCompany.


G Sankar Hemant J. BhattPartner PartnerMembership No. 46050 Membership No. 036834UDIN: 20046050AAAADB7091 UDIN: 20036834AAAABA7350




Directions under Section 143(5) of the Companies Act, 2013On the Accounts of The Shipping Corporation of India Limited for the year 2019-20

Sr. No. Directions Auditors’ comments including Action taken

wherever required to be taken

Impact on the Accounts and financial statements

1 Whether the company has system in place to process allthe accounting transactions through IT system? If NO,the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with thefinancialimplications,ifany,maybestated.

ThecompanyhasOneAccountingSystemi.e.SAP&othermajoroperatingsoftwaressuchasDanaos&Afsysetc.Allthesesoftwaresareintegratedwitheach other& there are no transactionswhich areaccounted outside the IT System.

NoImpact

2 Whether there is any restructuring of an existing loan orcasesofwaiver/writeoffofdebts/loans/interestetc.madeby a lender to the company due to the company’s inability to repaytheloan?Ifyes,thefinancialimpactmaybestated.

As explained to us and observed during the course of audit, there is no restructuring of an existing loan orcasesofwaiver/writeoffofdebts/loans/interestetc. made by a lender to the company due to the company’s inability to repay the loan.

NoImpact

3 Whetherfundsreceived/receivableforspecificschemesfromcentral/stateagencieswereproperlyaccountedfor/utilizedasperitstermandconditions?Listthecasesofdeviation.

Asexplainedtous&observedduringthecourseofaudit the Company has received two subsidies inearlier years, status of the same is as follows:-

a) Related to Myanmar Service, Company hasaccounted and utilised the grant as per its term and conditions and amount spent exceeding the grant amounting to `4.67Croresisshownasreceivable and provision for doubtful advances is created on the same.

NoImpact

b) The Company had received Ministry ofShipping subsidy of ` 19croresinthefinancialyear 2017-18 provided for running directshippingservicesbetweenIndiatoBangladesh- Myanmar and Srilanka - Maldives. However, theCompany awaited direction fromMinistryto start the Service and hence action for in-chartering of the vessel was deferred by the Company. In financial year2019-20,Ministryof Shipping directed to refund the Subsidy amount. Accordingly, subsidy and interest earned thereon from date of receipt of funds till date of refund amounting to ` 20.53croreswas transferred to Ministry of Shipping.

Impact

Sub-directions under Section 143(5) of the Companies Act, 2013 in respect of the Shipping Corporation of India Limited for the year 2019-20

Sr. No. Sub-directions Auditors’ comments including Action taken



1 Whether Substantial portion of Revenue Booked/ invoicesraisedarereversedorcancelled?

As explained to us and observed during the course ofaudit,Nosubstantial portionof revenuebooked/ invoices raised by company are reversed orcancelled except that in normal course of business and due to provision created at the cut-off date as per relevant Ind AS.

NoImpact






2 State the system for providing Impairment to vessels To determine Impairment of each vessel, carrying amount of the vessel is compared with its recoverable amount.Where the carrying amount of the vesselexceeds the recoverable amount, an impairment loss forthevesselisrecognized.Recoverableamountofthe vessel ishigherof itsMarketValue&Value inuse as on the balance sheet date. Market value of vesselsatBalanceSheetdatearebasedonvaluationreports provided by reputed international Valuationfirms.Valueinuseofvesselsisbasedonprojectionsof FutureCash inflows&Outflowsgenerated fromtheuseofthevesselanditssubsequentsale.Cashinflows and outflows used in the calculation arebased on market report of research and advisory firmslikeDrewry(whereavailable)aswellasbestavailable management estimates. Cash Inflow onsale of vessels is considered as their ScrapValueat the end of their useful life. The Value in use ofVessels as on the reporting date is arrived at bydiscountingtheNetCashInflowsbyusingWeightedAverageCostofCapital(WACC).

NoImpact

3 State the system for bifurcating repairs and expense for capitalizationandcharging to revenue.Whether repairsandexpenses which do not add to useful Iife of vessels are capitalized?

As per the company's accounting policy, expenses incurred during the planned dry docking of vessels and other major repair expenses of vessels like replacement of auxiliary engine etc. are capitalised in the asset’s carrying amount if it is probable that future economic benefits associatedwith the itemwillflow to theentityand thecostof the itemcanbe measured reliably as per the recognition criteria ofIndAS16.Allotherrepairsandexpensesthatdonotmeet the recognition criteria of Ind AS 16 arecharged to revenue.As observed during the course of audit, repairs and other expenses which do not add to useful life of vesselsarenotcapitalisedbytheCompanyandthesame are charged to revenue.

NoImpact

4 WhetherTitletoallinvestments/FDactuallyavailablewiththeCompany?

Title to all Investments including investments in shares & fixed deposits are available with thecompany.

NoImpact

5 Whether balance payable to Agents as at the yearend iscorrectlyreflectedunderthe“Liability"headinBalanceSheet?

Yes,Asexplained&observedduringthecourseofaudit at the end of the year, where money is payable to the agent, such balances are disclosed under the"Liability"head in thebalancesheet,subject toreconciliation with Agents.

NoImpact


G Sankar Hemant J. BhattPartner PartnerMembership No.46050 Membership No. 036834UDIN: 20046050AAAADB7091 UDIN: 20036834AAAABA7350



The Shipping Corporation of India Limited

STANDALONE BALANCE SHEET(AllamountsinINRlakhs,unlessotherwisestated)

Particulars Notes As at 31 March 2020

As at 31 March 2019

ASSETSNon-current assetsProperty,plantandequipment 3 1,062,764 1,111,656Capitalwork-in-progress 4 284 763

Other intangible assets 5 146 253Right-of-use asset 6 2,403 - Financialassets

i. Investments 7(a) 7,726 7,714ii.Loans 7(b) 26,030 2,036iii.Otherfinancialassets 7(c) 7 7

Income Tax assets (net) 8 20,112 15,562Other non-current assets 9 9,635 8,180Total non-current assets 1,129,107 1,146,171 Current assetsInventories 10 13,138 15,979Financialassets

i. Investments 7(d) - - ii. Trade receivables 7(e) 60,623 59,892iii.Cashandcashequivalents 7(f) 24,478 9,538iv.Bankbalancesotherthan(iii)above 7(g) 69,299 90,278v.Loans 7(b) 791 22,381vi.Otherfinancialassets 7(c) 56,322 47,676

Other current assets 9 19,547 23,545Assetsclassifiedasheldforsale 11 7 7 Total current assets 244,205 269,296 Total assets 1,373,312 1,415,467 EQUITY AND LIABILITIESEquityEquitysharecapital 12 46,580 46,580OtherEquity 13 683,238 651,541Total equity 729,818 698,121 LIABILITIESNon-current liabilitiesFinancialliabilitiesi.Borrowings 14(a) 167,738 252,666ii.LeaseLiabilities 14(b) 2,395 - iii.Otherfinancialliabilities 14(c) 25 41

Provisions 15 6,497 6,356Deferredtaxliabilities(net) 16 7,531 9,153 Total non-current liabilities 184,186 268,216




As at 31 March 2019

CurrentliabilitiesFinancialliabilitiesi.Borrowings 14(d) 198,642 158,748ii.LeaseLiabilities 14(b) 209 - iii. Trade payables

(a) total outstanding dues of micro enterprises and small enterprises; and 14(e) 629 545(b) total outstanding dues of creditors other than micro enterprises and small enterprises

14(e) 94,931 126,725

iv.Otherfinancialliabilities 14(c) 129,396 131,619Other current liabilities 17 12,148 9,859Provisions 15 1,007 1,130Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale 18 22,346 20,504Total current liabilities 459,308 449,130 Total liabilities 643,494 2,648 Total equity and liabilities 1,373,312 1,415,467

Theaccompanyingnotesno.1to47areanintegralpartoftheseStandaloneFinancialStatements.



FR. No. 109208W


FR. No. 103523W/W100048



CA G SankarPartner







STANDALONE BALANCE SHEET(AllamountsinINRlakhs,unlessotherwisestated)


STANDALONE STATEMENT OF PROFIT AND LOSS(AllamountsinINRlakhs,unlessotherwisestated)

Particulars Note Year ended 31 March 2020

Year ended 31 March 2019

Revenue from operations 19,20 442,544 387,285Other income 21 24,295 23,223Total Income 466,839 410,508 ExpensesCostofservicesrendered 22 255,825 253,296Employeebenefitsexpense 23 47,654 44,757Financecosts 24 36,413 35,905Depreciationandamortisationexpense 25 67,127 65,846Other expenses 26 25,069 18,189Total expenses 432,088 417,993 Profit/(Loss) before exceptional items and tax 34,751 (7,485)Exceptional items - - Profit/(Loss) before tax 34,751 (7,485)Tax expense 29Currenttax 4,850 7,090Tax pertaining to earlier years 154 - Deferredtax (1,622) (1,242)MATCreditEntitlement 1,134 (1,134)

Total tax expense 4,516 4,714 Profit/(Loss) for the period 30,235 (12,199)Other comprehensive incomeItems that will not be reclassified to profit or loss:Remeasurementsgain/(loss)ofdefinedbenefitplans 1,462 564

Other comprehensive income for the period, net of tax 1,462 564 Total comprehensive income for the period 31,697 (11,635)

Earnings per equity share 27(1)Basicearningspershare(in`) 6.49 (2.62)(2)Dilutedearningspershare(in`) 6.49 (2.62)




FR. No. 109208W


FR. No. 103523W/W100048



CA G SankarPartner




Mrs. H. K. JoshiChairperson & Managing Director & Director (Finance) Addl.charge

DIN - 07085755




STANDALONE CASH FLOW STATEMENT (AllamountsinINRlakhs,unlessotherwisestated)

Particulars Year ended 31 March 2020


A Cash Flow from operating activities

Profit/(Loss) before income tax 34,751 (7,485)

Adjustments for

Add:

Depreciationandamortisationexpenses 67,127 65,846

Financecosts 20,937 24,586

Baddebtsandirrecoverablebalanceswrittenoff 2,782 986

Provisionfordoubtfuldebts (839) 3,195

WriteoffofFixedAssets 242 191

ProvisionofAssetheldforsale (5) 95

ForeignCurrencyFluctuations 27,590 8,794

Less:

Dividendreceived (185) (287)

Interest received (8,117) (9,045)

ExcessProvisionswrittenback (6,212) (1,778)

Profitonsaleofinvestment (226) -

Surplusonsaleoffixedassets (9,337) (11,395)

Changeinnon-currentinvestmentduetofairvaluation (12) (232)

Change in operating assets and liabilities

(Increase)/DecreaseintradeandOtherReceivables (7,565) (17,876)

(Increase)/Decreaseininventories 2,841 (4,326)

(Increase)/DecreaseintradeandotherPayables/Provision (18,612) 22,193

105,160 73,462

Cash generated from operations

Income taxes paid (10,688) (6,639)

Net cash inflow from operating activities (A) 94,472 66,823

B Cash flow from investing activities:

Purchaseofproperty,plantandequipment/intangibleassets (10,450) (35,734)

Saleproceedsofproperty,plantandequipment 11,844 16,050

Dividendreceived 185 287

Proceedsfromsaleofinvestments 226 5,605

Loanremmited/Recoveryto/fromemployeesandJointventure (488) 2,510

OtherDepositswithbanks 20,722 (3,095)

AdvancesandotherDeposits 88 (738)

Interest received 9,792 8,490

Net cash inflow / (outflow) from investing activities (B) 31,919 (6,625)





C Cash flow from financing activities

Longtermloansrepaid (116,325) (109,024)

Longtermloansborrowed - 26,089

Shorttermloansborrowed/(repaid) 26,813 32,541

*DividendonsharespaidofearlieryearsandtransfertoIEPF - (20)

Interest paid (21,023) (22,640)

PaymentofLeaseliability (116) -

Otherfinancingcosts (1,318) (1,243)

Net cash outflow from financing activities (C) (111,969) (74,297)Net increase/(decrease) in cash and cash equivalents (A+B+C) 14,422 (14,099)

Add:ChangesinBankbalances(unavailableforuse)* 257 (223)

Add:Cashandcashequivalentsatthebeginningofthe financialyear

9,538 24,178

Exchange difference on translation of foreign currency cash and cash equivalents

261 (318)

Cash and cash equivalents at the end of the year** 24,478 9,538

**Comprisesof

Balanceswithbanksincurrentaccounts 21,830 5,995

Balanceswithbanksindepositsaccountwithoriginalmaturityoflessthan three months

2,648 3,543

Total 24,478 9,538

*Therestrictionsareprimarilyonaccountofbankbalancesheldasmarginmoneydepositsagainstguarantees.Theaccompanyingnotesno.1to47areanintegralpartoftheseStandaloneFinancialStatements.



FR. No. 109208W


FR. No. 103523W/W100048



CA G SankarPartner







STANDALONE CASH FLOW STATEMENT (AllamountsinINRlakhs,unlessotherwisestated)



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Corporate InformationThe Shipping Corporation of India Limited is the largest IndianShipping company limited by shares, incorporated in 1961. SCIis involved in business of transporting goods and passengers. SCI’sownedfleetincludesBulkcarriers,Crudeoiltankers,Producttankers, Container vessels, Passenger-cum-Cargo vessels, LPGcarrierandOffshoreSupplyVessels.Inaddition,SCImanagesalargenumber of vessels on behalf of various government departments andorganizations.TheregisteredofficeoftheCompanyislocatedatShippingHouse,245,MadameCamaRoad,NarimanPoint,Mumbai-400021.Thesefinancialstatementsareapprovedforissuebytheboardofdirectorson29th May2020.Note 1: Significant Accounting Policies The principal accounting policies applied in the preparation of

thesefinancialstatementsaresetoutbelow.Theaccountingpolicies applied are consistent with those of the previous financialyearsexceptfortheadoptionofIndAS116–Leasesw.e.f.April1,2019.

1.1 Basis of Preparation(a) Compliance with the Indian Accounting Standards ThefinancialstatementsoftheCompanyhavebeenprepared

in accordance with the Indian Accounting Standards (“IndAS”) notified under the Companies (Indian AccountingStandards)Rules,2015(asamendedfromtimetotime)readwithSection133of theCompaniesAct,2013(“theAct”) tothe extent applicable and current practices prevailing within the Shipping Industries in India. The policies set out below have been consistently applied during the years presented.

(b) Historical cost convention The financial statements have been prepared under the

historicalcostconvention,asmodifiedbythefollowing:• Certainfinancialassetandfinancialliabilitiesatfairvalue;• Definedbenefitplans–planassetsthataremeasuredatfair

value Fair value is the price that would be received to sell an

asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Companyusesvaluationtechniquesthatareappropriateinthecircumstancesand forwhichsufficientdataareavailable tomeasure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosedinthefinancialstatementsarecategorisedwithinthefair value hierarchy, described as follows, based on the lowest levelinputthatissignificanttothefairvaluemeasurementasa whole:

• Level 1 — Quoted (unadjusted) market prices in activemarkets for identical assets or liabilities

• Level 2— Valuation techniques for which the lowest levelinput that is significant to the fair value measurement isdirectly or indirectly observable

• Level 3— Valuation techniques for which the lowest levelinput that is significant to the fair value measurement isunobservable

(c) The assets and liabilities reported in the balance sheet are classified on a “current/non-current basis”, with separatereportingofassetsheldforsale.Currentassets,whichincludecash and cash equivalents (includes earmarked balances,margin money for bank guarantee) are assets that are intendedtoberealized,soldorconsumedduringthenormaloperatingcycleoftheCompanyorinthe12monthsfollowingthe balance sheet date; current liabilities are liabilities that are expected to be settled during the normal operating cycle of the Companyorwithinthe12monthsfollowingthecloseofthefinancialyear.

(d) The financial statements are presented in ‘Indian Rupees’(INR),whichisalsotheCompany’sfunctionalcurrencyandall amounts are rounded to the nearest lakhs, unless otherwise stated.

(e) Amended standard adopted by the Company (i) Ind AS 116 “Leases” The Company has implemented the Ind AS 116 “Leases”

as notified byMinistry of Corporate Affairs on 30thMarch2019 through the Companies (Indian Accounting Standard)AmendmentRules,2019.

The Company has applied the standard w.e.f. accountingperiod commenced on or after April 1, 2019 to its Leasesusingthemodifiedretrospectiveapproach,thereforepreviousperiod comparative figures are not adjusted in the financialstatements. This has resulted in recognising a lease liability measured at present value of the remaining lease payments andacorrespondingRight-of-Use(ROU)assetasiftheleasehas been commencedw.e.f. 1st April 2019. The Companydiscounted remaining lease payments using the lessee’s incrementalborrowingrateasat1stApril2019.TheCompanyhasalsoelectednottoapplytherequirementsofIndAS116to short term leases and leases for which underlying asset is of low value. In the results for the current period, the nature of expenses in respect of Operating lease has changed from lease rent in previous periods to depreciation cost for the right-of-use asset and finance cost for interest accrued onlease liability. The rights of use assets are depreciated on a straight line basis over a lease term.

The Company has therefore recognised a lease liability of

Standalone Financial Statement for the year ended 31 March 2020





`2640 lakhsandacorrespondingROUassetasat1st April 2019.TheimpactofadoptingIndAS116ontheCompany’sfinancial results for the year ended 31st March 2020 is asfollows:

1. Depreciationexpensehasincreasedby`293lakhsduetoamortisationofROUasset.

2. Financecosthasincreasedby`249lakhsduetointereston outstanding lease liability.

3. Otherexpenseshasbeendecreasedby`340lakhsduetorecognitionofleaseliabilityandcorrespondingROUasset.

4. ThenetimpactonPBTamountstoalossof`202lakhs. The net impact of this adoption is not material on the earnings

per share. The other amendments encompass various guidance and clarifications which affect disclosures. Thedisclosures of significant accounting reporting requirementsandassumptionsrelatingleasesareprovidedinNote6,14(b),24,25and34.

In connection with the transition to the new standard, management has applied judgement and formed assumptions in relation to assessing the incremental borrowing rate, service components and extension options of leasing arrangements. Management has formed its judgements and assumptions based on historical experience, internal and external available information and data.

(ii) Ind AS 12 “Income Tax” - Uncertainty over income tax treatments

TheMinistryofCorporateAffairs(MCA)notifiedtheCompanies(Indian Accounting Standards) Amendment Rules, 2019 on30th March2019.TheRulesamendedIndAS12–Uncertaintyover income tax treatments. These amendments are applicable from1April2019onwardsandtheCompanyhasappliedthisamendment w.e.f. accounting period commenced on or after April1,2019.

The principles of uncertain tax treatments are included in the scopeofIndAS12“Incometaxes”.Itclarifiestherecognitionand measurement for income tax when it is unclear whether a taxation authority will accept the tax treatment claimed. An uncertain tax position arises where there is more than one possible interpretation of how tax regulations apply to a given transactionorevent.TheinterpretationrequirestheCompanyto determine whether uncertain tax treatments are assessed separately or as a group. The interpretation also requiresan assumption that a taxation authority has full knowledge of all relevant information. Where it is not probable that ataxation authority will accept an uncertain tax treatment, it requires theCompany to reflect theeffectof theuncertaintyintheaccountingtaxposition.Finally,reassessmentshouldbeperformed on a yearly basis in the event of changes in facts

and circumstances. Management reviewed the features of the new interpretation,

notably in terms of tax risks included in the scope of the interpretation. However, the implementation of the standard has no impact on accounts.

(iii) The Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendment Rules, 2019 on 30th March 2019 and notified the following amendments (other than Ind AS 116 & amendment in Ind AS 12 mentioned above) which were applicable for period beginning on 1st April 2019:

Amendments to Ind AS 103: BusinessCombinations–Theamendment explains that when a party to a joint arrangement on obtaining a control of a business that is a joint operation and had right to the assets and obligation for the liabilities relating tothejointoperationimmediatelybeforetheacquisitiondate,the transaction is a business combination achieved in stages andacquirershallapplyrequirementforbusinesscombinationachievedinstages.TheCompanywillapplythisamendmentw.e.f.fromaccountingperiodcommencingonorafterApril1,2019.However,theadoptionaboveamendmentsdidnothaveanyeffectonthefinancialstatements.

Amendments to Ind AS 109: Financial Instruments -Prepayment features with Negative Compensation – Theamendment allows companies to measure particular prepayable financial assets with negative compensation atamortised cost or at fair value through other comprehensive income instead of measuring those assets at fair value through profitorloss.TheCompanywillapplythisamendmentw.e.f.fromaccountingperiodcommencingonorafterApril1,2019.However, the adoption above amendments did not have any effectonthefinancialstatements.

Amendments to Ind AS 111: Joint Arrangements - JointControlandJointOperations–Theamendmentthatstatesthata party that participates in, but does not have joint control of, a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes abusinessasdefinedinIndAS103.Insuchcases,previouslyheld interests in the joint operation are not remeasured. The Companywill apply this amendmentw.e.f. from accountingperiod commencing on or after April 1, 2019.However, theadoption above amendments did not have any effect on the financialstatements.

Amendments to Ind AS 19: Employee Benefits – PlanAmendment, Curtailment or Settlement - The amendmentsare relating to changes in determining the past service cost and current service cost on plan amendment, curtailment or settlement and about consideration of effect of asset ceiling. TheCompanywillapplythisamendmentw.e.f.fromaccounting


period commencing on or after April 1, 2019.However, theadoption above amendments did not have any effect on the financialstatements.

Amendments to Ind AS 23: BorrowingCosts–Theamendmentis about determination of amount of borrowing cost eligible for capitalisation in a case where an entity borrows fund generally andusesthemforthepurposeofobtainingaqualifyingassetby applying a capitalisation rate to the expenditures on that asset. The Company will apply this amendment w.e.f. fromaccounting period commencing on or after April 1, 2019.However, the adoption above amendments did not have any effectonthefinancialstatements.

Amendments to Ind AS 28: Investments in Associates and Joint Ventures - The amendment is about application of IndAS109(FinancialInstruments)tootherfinancialinstrumentsinanassociateorjointventuretowhichtheequitymethodisnot applied. The Companywill apply this amendmentw.e.f.fromaccountingperiodcommencingonorafterApril1,2019.However, the adoption above amendments did not have any effectonthefinancialstatements.

There are no other standard, changes in standards and interpretationsthatarenotinforcethattheCompanyexpectsto have a material impact arising from its application in its financialstatements.

1.2 Foreign currency translation(a) Functional and presentation currency Items included in the financial statements of the Company

are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’).Thefinancial statementsarepresented in ‘IndianRupees’ (INR), which is the Company’s functional and theCompany’spresentationcurrency.

(b) Transactions and balances All foreign currency transactions are recorded at the previous

day’s available RBI reference rate/exchange rate publishedthrough FBIL (Financial Benchmarks India Private Limited).Since the RBI reference rate published through FBIL isavailable for fourmajor currenciesonly i.e,USD,UKP,EUR,YEN,exchangeratesofothercurrenciesaretakenfromxe.comwebsite.

The foreign currency balances in US Dollars, UK Pounds,EuroandJapaneseYENappearinginthebooksofaccountattheperiodendare translated intoUSDollarsat theavailableRBI reference rate/exchange rate published through FBIL attheperiodend.TheforeigncurrencybalancesotherthanUSDollars, UK Pounds, Euro and Japanese YEN appearing inthebooksofaccountattheperiodendaretranslatedintoUSDollarsat the rateavailableonxe.comwebsiteat theperiod

end. Thereafter, the monetary assets and monetary liabilities as well as the Long Term Loans are translated into rupeesat RBI reference rate/exchange rate published through FBILprevailing at the period end.

Exchange difference arising on repayment of liabilities and conversion of foreign currency closing balances pertaining to long term loans for acquiring ships / containers / otherdepreciable assets and asset under construction is recognised as follows:

a) In respect of long term loans as on 31.03.2016, exchangedifference is adjusted in the carrying cost of respective assets.

b) Inrespectoflongtermloansafter31.03.2016,theexchangedifferenceischarged/creditedtoStatementofProfit&Loss.

The exchange differences arising on translation of other monetary assets and liabilities are recognised in the Statement ofprofitandloss.

1.3 Property, plant and equipment Items of property, plant and equipment acquired or

constructed are stated at historical cost net of recoverable taxes, less accumulated depreciation and impairment of loss, if any. The cost of tangible assets comprises of its purchase price, borrowing costs and adjustment arising for exchange rate variations attributable to the assets, wherever applicable including any cost directly attributable till completion of maiden voyage.

Expenditure incurred on assets which are not ready for their intended use comprising direct cost, related incidental expenses and attributable borrowing cost (net of revenues during constructions) are disclosed under Capital Work-in-Progress.

Subsequent costs like expenditure on major maintenancerefitsorrepairsincludingplanneddrydockareincludedintheasset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefitsassociatedwiththeitemwillflowtotheCompanyandthe cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised.

Transition to Ind AS: On transition to Ind AS -

a) Freehold land has been measured at fair value ontransition date and that fair value is used as the deemed cost;

b) Certain items of fleet have been measured at fairvalue and that fair value is used as deemed cost as on transition date.

c) All other assets which are not fair valued have been measuredinaccordancewithIndAS16retrospectively.




Depreciation: Depreciationonallvesselsischargedon“StraightLineMethod”

lessresidualvalue.InthecaseofLinerandBulkCarriervessels,thecompanyhasadoptedusefullifeof25yearsasmentionedinScheduleIItotheCompaniesAct,2013.IncaseofTankers&OffshoreVessels,thecompanyhasadoptedausefullifeof25yearsbasedonthetechnicalparametersincludingdesignlifeandthepastrecord.IncaseofVLGCvessel,thecompanyhasadoptedausefullifeof30yearsasmentionedinScheduleII to the Companies Act, 2013. Second hand vessels aredepreciated over their remaining useful lives as determined by technicalevaluationnotexceeding25/30yearsfromthedateof original built.

Capitalised expenditure on drydock are depreciated until thenext planned dry-docking.

Depreciation on other tangible assets is provided on thestraight line basis, over the estimated useful lives of assets as prescribed in the Schedule II of the Act, except in following cases:1) SolarPlantsaredepreciatedoveraperiodof25years

based on the technical assessment of useful life.2) Assetscostingindividually`5000/-andbelowarefully

depreciatedintheyearofacquisition.3) Furnishing allowances given to Senior Executives are

depreciatedoveraperiodof3years. Estimated useful lives, residual values and depreciation

methods are reviewed annually, taking into account commercial and technological obsolescence as well as normal wear and tear and adjusted prospectively, if appropriate.

Retirement And Disposal Of Assetsa) Assets which have been retired from operations for eventual

disposalareexhibitedseparatelyintheNoteNo.11-Assetsclassifiedasheldforsale.

b) Anticipated loss, if any, in the disposal of such assets is provided in the accounts for the year in which these have been retiredfromactiveuse.Forthepurposeofdeterminingtheloss,the sale price is recognised, if contract for sale is concluded. In other cases, assessment of the realisable value is made on thebasisoftheprevailingmarketconditions.Lossesonsuchassets are provided for after taking into account the expenses suchascustomsduty,salestax/valueaddedtax,GSTetc.inconnection with the disposal, as well as estimated expenses in maintainingtheasset,tillitssale.Wherevertheexactamountunder each item of expenses is not known, an assessment is done on the best estimate basis.

c) Profits on sale of assets are accounted for only uponcompletion of sale thereof.

1.4 Intangible assets Intangibleassetsacquiredarestatedatcostlessaccumulated

amortization and accumulated impairment losses, if any.The cost comprises of purchase price, borrowing costs and directly attributable costs.

Transition to Ind AS: On transition to Ind AS, the company has elected to continue

with the carrying value of all of intangible assets recognised as atApril1,2015measuredasperthepreviousGAAPandusethat carrying value as the deemed cost of intangible assets.

Amortisation Amortization is charged on a straight-line basis over

the estimated useful lives. The estimated useful life and amortizationmethodarereviewedat theendofeachannualreporting period, with the effect of any changes in the estimate being accounted for on a prospective basis.

Intangible assets including software is amortised over the usefullifenotexceedingfiveyears.

1.5 Borrowing costs Borrowing costs that are attributable to the acquisition or

constructionofqualifyingassetsarecapitalisedaspartofthecostofsuchassets.Aqualifyingassetisonethatnecessarilytakes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of ProfitandLossintheperiodinwhichtheyareincurred.

1.6 Impairment of non-financial assets Assets that are subject to depreciation or amortisation are

reviewed for impairment31st March every year or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The impairment loss, if any, isrecognisedintheStatementofProfitandLossintheperiodin which impairment takes place.

1.7 Inventories Inventories are valued at cost (as determined on Moving

Average/Weighted Average method) or net realisable value,whichever is lower, unless otherwise stated.

Fueloilpurchasesare initiallybookedasstock.Thevalueofyear-end stock is arrived at after charging consumption on “movingaverage/weightedaverage”method.

Store/Sparesincludingpaints,etc.arechargedtorevenueasconsumed when delivered to ships.

1.8 Non-current assets held-for-sale Non-currentassetsareclassifiedasassetsheldforsalewhen

their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value




less costs to sell if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use.

1.9 Trade Receivable Trade receivables are amounts due from customers for sale

of goods or services performed in the ordinary course of business.Tradereceivablesarerecognizedinitiallyatfairvalue.Theyaresubsequentlymeasuredatamortisedcostusingtheeffective interest method, net of provision for impairment. The carrying value less impairment provision of trade receivables, are assumed to be approximate to their fair values.

1.10 Cash and cash equivalents Cashandcashequivalentsincludescashatbankandinhand,

depositswithbanks,othershort-termhighlyliquidinvestmentswith original maturities of three months or less from date of acquisition.

For the purpose of the statement of cash flows, cash andcashequivalentsconsistofcashandshort-termdeposits,asdefinedabove.

1.11 Investments and other financial assets i. Initial recognition and measurement Allfinancialassetsarerecognisedinitiallyatfairvalueplus,

in the case of financial assets not recorded at fair valuethroughprofitorloss,transactioncoststhatareattributabletotheacquisitionofthefinancialasset.

ii. Subsequent measurement For the purposes of subsequent measurement, the

company classifies its financial assets in the followingmeasurement categories:

•thosetobemeasuredsubsequentlyatfairvalue(eitherthroughothercomprehensiveincome,orthroughprofitor loss), and

•thosemeasuredatamortisedcost. Theclassificationdependsontheentity’sbusinessmodelfor

managingthefinancialassetsandthecontractualtermsofthecashflows.Forassetsmeasuredatfairvalue,gainsandlosseswilleitherberecordedinprofitorlossorothercomprehensiveincome.Forinvestmentsindebtinstruments,thiswilldependon the businessmodel inwhich the investment is held. Forinvestmentsinequityinstruments,thiswilldependonwhetherthe company has made an irrevocable election at the time of initial recognition toaccount for theequity investmentat fairvalue through other comprehensive income.

The company reclassifies debt instruments when and onlywhen its business model for managing those assets changes.

Debt instruments Subsequent measurement of debt instruments depends on

the company’s business model for managing the asset and the cash flow characteristics of the asset. There are threemeasurementcategoriesintowhichthecompanyclassifiesitsdebt instruments:

Amortised cost: Assets that are held for collection of contractualcashflowswherethosecashflowsrepresentsolelypayments of principal and interest are measured at amortised cost.Againorlossonadebtinstrumentthatissubsequentlymeasured at amortised cost is recognised in profit or losswhen the asset is derecognised or impaired. Interest income fromthesefinancialassetsisincludedinfinanceincomeusingthe effective interest rate method.

Fair value through other comprehensive income (FVTOCI): Assets that areheld forcollectionof contractual cashflowsand for selling the financial assets, where the assets’ cashflowsrepresentsolelypaymentsofprincipalandinterest,aremeasured at fair value through other comprehensive income (FVTOCI). Movements in the carrying amount are takenthroughOCI,exceptfortherecognitionofimpairmentgainsorlosses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss.When the financialasset is derecognised, the cumulative gain or loss previously recognisedinOCIisreclassifiedfromequitytoprofitorloss.Interestincomefromthesefinancialassetsisincludedinotherincome using the effective interest rate method.

Fair value through profit or loss (FVTPL): Assets that do not meetthecriteriaforamortisedcostorFVTOCIaremeasuredat fair value throughprofitor loss.Againor lossonadebtinstrumentthatissubsequentlymeasuredatfairvaluethroughprofit or loss is recognised in profit or loss in the period inwhichitarises.Interestincomefromthesefinancialassetsisincluded in other income.

Equity Instrumentsa) Subsidiary and Joint Ventures Investments in equity instruments of subsidiary and joint

ventures are carried at cost less impairment, if any.b) Others Thecompanysubsequentlymeasuresallequityinstrumentsat

fairvalue.Changesinthefairvalueoffinancialassetsatfairvaluethroughprofitorlossarerecognisedinthestatementofprofitandloss.

iii. Derecognition Afinancialassetisderecognisedonlywhen:

i. the rights to receive cash flows from the asset haveexpired, or

ii. the company has transferred its rights to receive cash flows fromtheassetorhasassumedanobligation topaythereceivedcashflowstooneormorerecipient




Where the entity has transferred an asset, the companyevaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases,thefinancialasset isderecognised.Wheretheentityhasnottransferred substantially all risks and rewards of ownership of thefinancialasset,thefinancialassetisnotderecognised.

Where the entity has neither transferred a financial assetnor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised ifthe companyhasnot retainedcontrol of the financial asset.Wherethecompanyretainscontrolofthefinancialasset,theasset is continued to be recognised to the extent of continuing involvementinthefinancialasset.

iv. Impairment of Financial Assets The company assesses on a forward looking basis the

expected credit losses associated with its assets carried at amortisedcostandFVTOCIdebtinstruments.Theimpairmentmethodology applied depends on whether there has been a significantincreaseincreditrisk.

Theimpairmentmethodologyforeachclassoffinancialassetsstated above is as follows:

Debt instruments measured at amortised cost and FVTOCI: DebtinstrumentsatamortisedcostandthoseatFVTOCIwherethere has been a significant increase in credit risk, lifetimeexpected credit loss provision method is used and in all other cases,theimpairmentprovisionisdeterminedas12monthsexpected credit losses.

Trade receivables from customers: The Company appliesthe simplified approach for providing expected credit lossesprescribed by Ind AS 109, which requires the use of thelifetime expected loss provision for all trade receivables.

v. Income recognition Interest income Interest income from debt instruments is recognised using

the effective interest rate method. The effective interest rate istheratethatexactlydiscountsestimatedfuturecashflowsthrough the expected life of the financial asset to the grosscarrying amount of a financial asset. When calculating theeffective interest rate, the company estimates the expected cash flows by considering all the contractual terms of thefinancialinstrument(forexample,prepayment,extension,calland similar options) but does not consider the expected credit losses.

Dividend Dividendsarerecognisedinprofitorlossonlywhentherightto

receive payment is established, it is probable that the economic benefitsassociatedwiththedividendwillflowtothecompany,and the amount of the dividend can be measured reliably.

1.12 Offsetting Financial instruments Financialassetsand liabilitiesareoffsetand thenetamount

reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

1.13 Contributed equity Ordinary shares are classified as equity. Incremental costs

directly attributable to the issue of new shares or options are showninequityasadeduction,netoftax,fromtheproceeds.

1.14 Financial liabilities i. Classification as debt or equity Debt and equity instruments issued by the company are

classifiedaseitherfinancialliabilitiesorasequityinaccordancewith the substance of the contractual arrangements and the definitionofafinancialliabilityandanequityinstrument.

Anequityinstrumentisanycontractthatevidencesaresidualinterest in the assets of an entity after deducting all of its liabilities.

ii. Initial recognition and measurement Allfinancialliabilitiesarerecognisedinitiallyatfairvalueand,in

the case of borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and otherpayables, loans and borrowings including bank overdrafts.

iii. Subsequent measurement The measurement of financial liabilities depends on their

classification,asdescribedbelow: Borrowings: Borrowingsaresubsequentlycarriedatamortised

cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement ofprofitandlossovertheperiodoftheborrowingsusingtheeffective interest method.

Trade and other payable: These amounts represent obligations to pay for goods or services that have been acquired inthe ordinary course of business from suppliers. They are recognizedinitiallyatfairvalueandsubsequentlymeasuredatamortised cost using the effective interest method.

iv. Derecognition Afinancialliabilityisderecognisedwhentheobligationunder

the liability is discharged or cancelled or expires. When anexistingfinancialliabilityisreplacedbyanotherfromthesamelender on substantially different terms, or the terms of an existingliabilityaresubstantiallymodified,suchanexchangeormodification istreatedasthederecognitionof theoriginalliability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement ofprofitorloss.




1.15 Income tax Provision for income tax liability is made as per special

provisions relating to income of shipping companies under the IncomeTaxAct,1961onthebasisofdeemedtonnageincomeof theCompany.Provision for income- taxonnon-shippingincome is made as per the normal provisions of the Income- TaxAct1961.Asper thenewly introducedsection115BAAoftheAct,witheffectfromtheyearended31stMarch2020,all domestic companies shall have an option to pay income tax@22%[excludingsurchargeandcess]orattherateasapplicable from time to time subject to conditions.

Deferred income tax is provided in full, using the liabilitymethod, on temporary differences (other than those which are covered in tonnage tax scheme) arising between the tax bases of assets and liabilities and their carrying amounts in thefinancialstatements.Deferredtaxassetsarerecognizedtothe extent that it is probable that future taxable income will be available against which the deductible temporary differences can be utilised.

Deferredtaxassetsandliabilitiesaremeasuredbasedonthetax rates that are expected to apply in the period when the asset is realizedor the liability issettled,basedon tax ratesand tax laws that have been enacted or substantively enacted by the balance sheet date.

Current and deferred tax is recognised in profit or loss,except to the extent that it relates to items recognised in other comprehensiveincomeordirectlyinequity.

1.16 Employee Benefitsa) Short-term / long term obligations Allemployeebenefitspayablewhollywithintwelvemonthsof

rendering the service including performance incentives and compensatedabsencesareclassifiedasshorttermemployeebenefits. The undiscounted amount of short term employeebenefits expected to be paid in exchange for the servicesrendered by employees are charged off to the Statement of ProfitandLoss.Theemployeebenefitswhicharenotexpectedto occur within twelve months are classified as long termbenefitsandarerecognisedasliabilityatthenetpresentvalue.

b) Defined contribution plan Employeebenefitsunderdefinedcontributionplanscomprising

of post - retirement medical benefits (w.e.f 01.01.2007),providentfundandpensioncontributionarerecognizedbasedon the undiscounted amount of obligations of the company to contribute to the plan. This contribution is recognised based on its undiscounted amount and paid to a fund administered through a separate trust except post- retirement medical benefitforemployee’sretiredw.e.f01.01.2007.

c) Defined benefit plan Employeebenefitsunderdefinedbenefitplanscomprisingof

gratuity,leaveencashmentandpost-retirementmedicalbenefitsforemployeesretiredbefore01.01.2007arerecognizedbasedon the present value of defined benefit obligation, which iscomputed on the basis of actuarial valuation.

The defined benefit obligation is calculated annually byindependent actuaries using the projected unit credit method.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net intereston thenetdefinedbenefit liability and the returnon plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediatelyin the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which theyoccur.Remeasurementsarenotreclassifiedtoprofitorlossinsubsequentperiods.

Netinterestiscalculatedbyapplyingthediscountratetothenetdefinedbenefitliabilityorasset.

1.17 Prior period items All material prior period errors are adjusted retrospectively in

the first set of financial statements approved for issue aftertheir discovery by:

(a) Restating the comparative amounts for the prior period(s) presented in which the error occurred; or

(b) If the error occurred before the earliest prior period presented, restatingtheopeningbalancesofassets,liabilitiesandequityfor the earliest prior period presented.

1.18 Provisions, contingent liabilities and contingent assets Provisions Provisionsare recognisedwhen theCompanyhasapresent

legal or constructive obligation as a result of past events; it is probablethatanoutflowofresourceswillberequiredtosettlethe obligation; and the amount has been reliably estimated.

Contingent liabilities Contingent liabilities are disclosedwhen there is a possible

obligation arising from past events, the existence of which will beconfirmedonlybytheoccurrenceornon-occurrenceofoneor more uncertain future events not wholly within the control of theCompany.Apresentobligationthatarisesfrompasteventswhereitiseithernotprobablethatanoutflowofresourceswillberequiredtosettleorreliableestimateoftheamountcannotbe made is treated as contingent liability.

Contingent Assets Acontingentassetisdisclosed,whereaninflowofeconomic

benefitsisprobable.




1.19 Revenue Recognition RevenueIncomeisrecognisedintheStatementofProfitand

Losswhen:• Theincomegeneratingactivitieshavebeencarriedout

on the basis of a binding agreement • Theincomecanbemeasuredreliably• Itisprobablethattheeconomicbenefitsassociatedwith

thetransactionwillflowtotheCompany• Costs relating to the transaction can be measured

reliably Revenue for all businesses is recognised when the performance

obligationhasbeensatisfied,whichhappensuponthetransferof control to the customer at an amount that reflects theconsiderationtowhichtheCompanyexpectstobeentitledinexchange for the goods and services.

Revenue is recognised when or as performance obligations aresatisfiedbytransferringthepromisedgoodsorservicestothe customer, i.e. at a point in time or over time provided that the stage of completion can be measured reliably.

Revenue mainly comprises freight, charter hire and demurrage revenues from the vessels.

Freight - The Company generates revenue from shippingactivities. Revenues from vessels are mainly derived from a combination of time charters and voyage charters. Revenue from a voyage charter is recognised over time, which is determined on a percentage of voyage completion method.

Charter-hire-Revenuefromatimecharterisrecognisedonastraight-line basis over the period of the charter.

Demurrage revenue - Freight contracts contain conditionsregarding the amount of time available for loading and discharging of the vessel. If these conditions are breached, theCompanyiscompensatedfortheadditionaltimeincurredin the form of demurrage revenue. Demurrage revenue isrecognised upon delivery of services in accordance with the termsandconditionsofthecontract.Uponcompletionofthevoyage,theCompanyassessesthetimespentinport,andademurrage claim based on the relevant contractual conditions issubmittedtothecharterers.(Further,referNoteNo2(g)–Demurrage).

Profitfromsaleofvessels-Revenuefromthesaleofvesselisrecognised upon the transfer of control to the buyer.

Cost of services rendered includes port expenses, bunkers(FuelOil), commissions, hire of chartered steamers, stores,spares, repair and maintenance expenses, Insurance expenses etc.

Employee Benefit Expenses - Operating expenses, whichcompriseofshorestaff&floatingstaffexpenses.

Financial expenses - Financial expenses comprise interestexpenses.

Other expenses – Other expenses which comprise officeexpenses, provisions, managements cost and other expenses relating to administration.

1.20 Insurance, P&I And Other Claims(a) ProvisioninrespectofclaimsagainsttheCompanyismadeas

under:-i. InrespectofcollisionclaimsandP&Iclaims(otherthan

crew&cargoclaims), to the extent of deductible limitbased on the assessment provided by the surveyors.

ii. In caseofCargoclaims, actual claims registered and/or paid pertaining to the relevant year’s voyages as ascertainedattheperiodendortheP&Ideductiblelimitwhichever is lower.

(b) No provision ismade in respect of claims by theCompanycoveredunderHull&Machinery insuranceand treatmentofsuch claims is as under:-i. Expenses on account of particular and general average

claims/damagestoshipsarechargedoffintheperiodin which they are incurred.

ii. Claimsagainst theunderwritersare initiallyaccountedfor based on the admission of the claims liability by the underwriters. The final adjustment in the recoverableamount is done on submission of the Adjuster’s report totheunderwriterswhichreflecttheexactrecoverableamount from the underwriters

(c) ClaimsmadebytheCompanyagainstotherpartiesnotcoveredunder insurance including ship repair yards, ship-owners, ship charterers, customs and others, etc. are recognised on realisation, due to uncertainty in the amounts of their ultimate recovery

1.21 Leases A contract or parts of contracts that conveys the right to

control theuseof an identifiedasset for aperiodof time inexchange for payments to be made to the owners (lessors) are accountedforasleases.Contractsareassessedtodeterminewhether a contract is, or contains, a lease at the inception of a contract or when the terms and conditions of a contract are significantlychanged.

Where theCompany is the lessee ina leasearrangementatinception,theleasecontractsarerecognizedasrights-ofuseassets and lease liabilities are measured at present value of lease payments at initial recognition except for short-term leases and leases of low value. The rights of use assets are depreciatedonastraight linebasisovera leaseterm.Leasepayments are discounted using the interest rate implicit in the lease. If that rate is not readily available, the incremental




borrowing rate is applied. The incremental borrowing rate reflectstherateofinterestthatthelesseewouldhavetopaytoborrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a similar economic environment. Payments associated with short-term leases and leases oflow-valueassetsarerecognisedasanexpenseinprofit&lossAccount.

Where theCompany is the lessor in a leasearrangementatinception,theleasearrangementwillbeclassifiedasafinancelease or an operating lease. Classification is based on theextent to which the risks and rewards incidental to ownership oftheunderlyingassetliewiththelessororthelessee.Underoperatinglease,wheretheCompanyisthelessor,theassetsare included in the balance sheet and, where applicable, are depreciated in accordancewith the Company’s depreciationpoliciesassetoutinNote1.3Property,plantandequipment.Revenue arising from assets leased out under operating leases is recognised on overtime basis.

1.22 Segment Reporting Operating segments are reported in a manner consistent with

the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board ofDirectorsthatmakesstrategicdecisions.

1.23 Earnings per share Basic iscomputedbydividing thenetprofit after taxby the

weightedaveragenumberofequitysharesoutstandingduringtheperiod.DilutedearningsperequitysharearecomputedbydividingthenetprofitattributabletotheequityholdersoftheCompanyby theweighted averagenumberof equity sharesconsidered for deriving basic earnings per equity share andalsotheweightedaveragenumberofequitysharesthatcouldhave been issued upon conversion of all dilutive potential equityshares.

1.24 Cash flow statement Cashflowsare reportedusing the indirectmethod,whereby

profit before tax is adjusted for the effects of transactionsof non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows fromoperating, investing and financing activities of theCompanyare segregated based on the available information.

1.25 Government Grants Grantsfromthegovernmentarerecognisedattheirfairvalue

where there is a reasonable assurance that the grant will be received and the Companywill complywith all attachedconditions. Government grants relating to duty scrips on

export of services (Served from India Scheme) are related to incomeandarerecognisedintheprofitorlossovertheperiodnecessary to match them with the costs that they are intended to compensate and presented within other income.

Government grants are recognised in profit or loss on asystematic basis over the periods in which the entity recognises as expenses the related costs for which the grants are intended to compensate.

Note 2: Critical Accounting Estimates and Judgements Preparing the financial statements under Ind AS requires

management to take decisions and make estimates and assumptions that may impact the value of revenues, costs, assets and liabilities and the related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

TheCompanymake estimates and assumptions concerningthefuture.Theresultingaccountingestimateswill,bydefinition,seldom equal the related actual results. The estimates andassumptionsthathaveasignificantriskofcausingamaterialadjustment to the carrying amounts of assets and liabilities withinthenextfinancialyeararediscussedbelow:

a) Useful lives of vessels Management of the Company decided the estimated useful

lives of vessels and respective depreciation. The accounting estimateisbasedontheexpectedwearsandtears.Wearsandtearscanbesignificantlydifferent following renovationeachtime.Whentheuseful livesdiffer fromtheoriginalestimateduseful lives, management will adjust the estimated useful lives accordingly. It is possible that the estimates made based on existing experience are different to the actual outcomes within thenextfinancialperiodandcouldcauseamaterialadjustmenttothecarryingamountoffixedassets.

b) Residual Value Residualvalueisconsideredas5%oforiginalcostofVessel.

In case of other assets, the residual value, being negligible, has been considered as nil. The residual value of vessels is reviewedeveryyearon31st March. On the basis of review of residualvalueofvesselsason31stMarch2020,2PSVand5AHTS vessels are estimated to be having scrap value less than 5%oforiginalcost.[ReferNoteNo.40]

c) Impairment of assets The recoverable amount of an asset or a cash-generating unit

is determined based on value-in-use calculations prepared on the basis of management’s assumptions and estimates




An impairment loss is recognised for the amount by which the asset’s or cash generating unit’s carrying amount exceeds its recoverable amount and is recognised in the Statement of ProfitandLoss.Recoverableamount ishigherofanasset’snetsellingpriceanditsvalueinuse.Valueinuseisthepresentvalueofestimatedfuturecashflowsexpectedtoarisefromthecontinuing use of an asset and from its disposal at the end of its useful life.

d) Defined benefit obligations Thepresentvalueofthedefinedbenefitobligationsdependson

a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for post employments plans include the discount rate. Any changes in these assumptions will impact the carrying amount of such obligations.

DiscountRateforthevaluationisdeterminedbyreferencetomarketyieldsatthebalancesheetdateonGovernmentBonds.This is the rate that is used to determine the present value ofestimatedfuturecashoutflowsexpectedtoberequiredtosettlethedefinedbenefitobligations.

e) Provision Estimates of the amounts of provisions recognised are based

oncurrentlegalandconstructiverequirements,technologyandpricelevels.Becauseactualoutflowscandifferfromestimatesdue to changes in laws, regulations, public expectations, technology, prices and conditions, and can take place many years in the future, the carrying amounts of provisions are regularly reviewed and adjusted to take account of such changes.

f) Impairment of Trade Receivable Themethodology followed by SCI is the use of a provision

matrix as a practical expedient to measure expected credit losses on its portfolio of trade receivables. The model uses historical credit loss experience for trade receivables i.e. this model uses aging analysis of trade receivables as at the reporting date.

Considering the different servicesprovidedbyour companyand provisioning made segment wise in SCI, analysis andcomputation of expected credit loss for trade receivables is done for different segments.

g) Demurrage Vessel Demurrage income due as per contractual terms is

recognized.Aprovisiononestimatedbasis ismadetowardsdeduction from demurrage based on past experience of settlements.

h) Income Tax DuetoTonnagetaxregimeapplicableonthemainpartofthe

company's activities, resulting in a lower income tax payable in the future, the amount of deferred tax to be recognised is limited. Considering the tonnage tax regime applicable toshipping activities, difference between taxable and book values of assets and liabilities are generally of permanent nature. This is due to the fact that the taxable result for tonnage tax eligible activities has no correlation with either carrying value or the generally applicable tax value of assets and liabilities. Asaconsequence,temporarydifferencesarelimitedtothosearising from other activities which are subject to normal Income tax provisions.

i) Leases Lease contracts contain extension or termination options.

Assessment of the exercise or non-exercise of such options impacts the value of right-of-use asset recognised. Such assessments are reviewed whenever a significant event orchange in circumstances occurs.

For thepurposeofcalculating thepresentvalue, the interestrate implicit in the lease or an incremental borrowing rate is usedasdiscountfactor.Wheretherateimplicitintheleaseisnot readily available, an incremental borrowing rate is applied. This incremental borrowing rate reflects the rate of interestthat the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset. Determination of the incremental borrowing rate requiresestimation.

Management has applied judgement and formed assumptions in relation to assessment of incremental borrowing rate, service components and extension options of leasing arrangements. Management has formed its judgements and assumptions based on historical experience, internal and external information and data available.




NOTE 3: PROPERTY, PLANT AND EQUIPMENT

Particulars Freehold Land Buildings

Ownership Flats &

Residential Buildings

Fleet* Fleet Drydock

Own-ership Con-tainer

Furni-ture,

Fittings & Equip-

ments

Moter Vehi-cles

Total

Net carrying amount (31 March 2018) 237,630 1,027 125 865,376 29,757 - 833 - 1,134,748Year ended 31 March 2019 Gross carrying amount Opening gross carrying amount(31March2018) 237,630 1,107 140 1,292,676 64,039 - 1,681 8 1,597,281

Additions - - - 21,128 25,158 - 267 10 46,563Assetsclassifiedasheldforsale(Note11) - - - (97) - - - - (97)Disposals - - - (82,088) (4,571) - - - (86,659)Transfer - - - - 781 - - - 781Closing gross carrying amount (31 March 2019) 237,630 1,107 140 1,231,619 85,407 - 1,948 18 1,557,869

Accumulated depreciation Opening accumulated depreciation(31March2018) - 80 15 427,300 34,282 - 848 8 462,533

Depreciationchargefortheyear - 28 5 47,787 17,689 - 250 1 65,760Assetsclassifiedasheldforsale(Note11) - - - (16) - - - - (16)Disposals - - - (77,994) (4,070) - - - (82,064)Closing accumulated depreciation (31 March 2019) - 108 20 397,077 47,901 - 1,098 9 446,213

Net carrying amount (31 March 2019) 237,630 999 120 834,542 37,506 - 850 9 1,111,656Year ended 31 March 2020 Gross carrying amount Opening gross carrying amount(31March2019) 237,630 1,107 140 1,231,619 85,407 - 1,948 18 1,557,869

Additions - 34 - 14,869 4,818 - 97 - 19,818Disposals - - - (56,440) (4,502) - (3) - (60,945)Transfer - - - - 763 - - - 763Closing gross carrying amount (31 March 2020) 237,630 1,141 140 1,190,048 86,486 - 2,042 18 1,517,505

Accumulated depreciation Openingaccumulateddepreciation(31March2019) - 108 20 397,077 47,901 - 1,098 9 446,213

Depreciationchargefortheyear - 29 5 48,032 18,477 - 180 1 66,724Disposals - - - (53,965) (4,228) - (3) - (58,196)Closing accumulated depreciation (31 March 2020) - 137 25 391,144 62,150 - 1,275 10 454,741

Net carrying amount (31 March 2020) 237,630 1,004 115 798,904 24,336 - 767 8 1,062,764

Notes:-(1)AdditionstoFleetinclude`11,875Lakhs(Previousyear`19,743lakhs)onaccountofcurrencyexchangedifferenceadjustedasperSignificantAccountingPolicyofforeigncurrencytranslation.

(2)BuildingsincludecostofShippingHouseatMumbai` 134lakhswhichisonleaseholdland(Previousyear`134lakhs)(3)OwnershipFlatsandResidentialBuildingsinclude:CostofsharesandbondsinCooperativeSocieties/Companyoffacevalue`0.73lakhs(Previousyear`0.73lakhs).

(4)*ReferNote35forFleetpledgedwithbanksforBorrowings.(5)Thereisnosignificantproperty,plantandequipmentason31stMarch2020whicharefullydepreciatedandarestillinuse.

NOTES TO STANDALONE FINANCIAL STATEMENTS(AllamountsinINRlakhs,unlessotherwisestated)



NOTE 4: CAPITAL WORK-IN-PROGRESS

Particulars As at

March 31, 2018

Incurred during

the year

Capitalised/ Adjusted

As at March 31,

2019

Incurred during the

year


As at March 31,

2020 (A) Construction Work in Progress AssetunderConstructionexcludingadvance

781 763 781 763 284 763 284

(B) Construction Period Expenses a. Interest - - - - - - - b. Other directly attributable expenses - - - - - - - c.Exchangefluctuation - - - - - - - Total (A+B) 781 763 781 763 284 763 284

NOTE 5: INTANGIBLE ASSETSParticulars Computer Software Total

Net carrying amount (31 March 2018) 52 52 Year ended 31 March 2019 Gross carrying amount Openinggrosscarryingamount(31March2018) 1,336 1,336 Additions 287 287 Closing gross carrying amount (31 March 2019) 1,623 1,623 Accumulated amortisation Openingaccumulatedamortisation(31March2018) 1,284 1,284 Amortisation charge for the year 86 86 Closing accumulated amortisation (31 March 2019) 1,370 1,370 Net carrying amount (31 March 2019) 253 253 Year ended 31 March 2020 Gross carrying amount Openinggrosscarryingamount(31March2019) 1,623 1,623 Additions 2 2 Closing gross carrying amount (31 March 2020) 1,625 1,625 Accumulated amortisation Openingaccumulatedamortisation(31March2019) 1,370 1,370 Amortisation charge for the year 109 109 Closing accumulated amortisation (31 March 2020) 1,479 1,479 Net carrying amount (31 March 2020) 146 146

NOTE 6: RIGHT OF USE ASSET

Particulars Land Buildings Fleet Furniture, Fittings &

Equipments

Moter Vehicles Total

Year ended 31 March 2020 Gross carrying amount Openinggrosscarryingamount(1 April2019) 428 2,012 - - 200 2,640 Additions - 7 - 49 - 56 Closing gross carrying amount (31 March 2020) 428 2,019 - 49 200 2,696





Equipments


Accumulated depreciation Openingaccumulateddepreciation(1April2019) - - - - - - Depreciationchargefortheyear 42 177 - 5 69 293 Closing accumulated depreciation (31 March 2020) 42 177 - 5 69 293 Net carrying amount (31 March 2020) 386 1,842 - 44 131 2,403

NOTE 7: FINANCIAL ASSETSNOTE 7(a): NON-CURRENT INVESTMENTS

ParticularsFace value

31 March 2020 31 March 2019No. of shares/

UnitsRupees in

lakhsNo. of shares/

UnitsRupees in

lakhsInvestmentinequityinstruments(fullypaid-up)Unquoted(i) Investment carried at cost

In SubsidiaryInland&CoastalShippingLimited `10 50000 5 50000 5

In Joint VentureOrdinarySharesof2.33EuroeachfullypaidofIndiaLNGTransportCompany(No.1)Ltd.

2.33Euro 2908 3 2908 3

OrdinarySharesof2.33EuroeachfullypaidofIndiaLNGTransportCompany(No.2)Ltd.

2.33Euro 2908 3 2908 3

OrdinarySharesof1USDeachfullypaidofIndiaLNGTransportCompany(No.3)Ltd.

1USD 2600 1 2600 1

OrdinarySharesof1USDeachfullypaidofIndiaLNGTransportCompany(No.4)PvtLtd.

1USD 11036558 7,352 11036558 7,352

(ii) Investment carried at fair value through Profit or loss5,00,00,000(Prev.yr.5,00,00,000)OrdinarySharesof` 10eachfullypaidofSethusamudramCorp.Ltd.

` 10 50000000 5,000 50000000 5,000

Less:Lossallowance 5,000 5,000 - -

3438EquitySharesof` 20/-eachofScindiaSteamNavigationCompanyLtd.,fullypaid(`0.30lakhs;Prev.yr.` 0.30lakhs)

`20 3438 - 3438 -

Less:Lossallowance - - - -

60,000EquitySharesof`10/-eachofWoodlandSpecialityHospitalLtd.(Prev.yr.60,000)

` 10 60000 362 60000 350

Total (equity instruments) 7,726 7,714 Total non-current investments 7,726 7,714 Aggregateamountofunquotedinvestments 12,726 12,714 Aggregate amount of impairment in the value of investments 5,000 5,000 Investments carried at cost 7,364 7,364 InvestmentscarriedatfairvaluethroughProfitandLoss 362 350




(A) SethusamudramCorporationLtd.(SCL),aSpecialPurposeVehiclewasincorporatedon06.12.2004fordevelopingtheSethusamudramChannelProjectwithTuticorinPortTrust,EnnorePortLtd,VisakhapatnamPorttrust,ChennaiPortTrust,DredgingCorporationofIndiaLtd.,ShippingCorporationofIndiaLtd.andParadipPortTrustastheshareholders.SCIparticipatedwithaninvestmentof`5000lakhs(previous year ̀ 5000lakhs).Thedredgingworkissuspendedfrom17.09.2009consequentuponthedirectionoftheHon'bleSupremeCourtofIndia.Asthereisnoprogressintheprojectsincethen,theManagementhadprovidedfordiminutiontowardstheinvestmentinFY2012-13.

(B) IndiaLNGTransportCompaniesNo.1&2Ltd.aretwojointventurecompaniespromotedbytheCorporationandthreeJapanesecompaniesViz.M/SMitsuiO.S.K.linesLtd.(MOL),M/SNipponYusenKabushikiKaishaLtd(NYKLines)andM/SKawasakiKisenKaishaLtd(KLine)alongwithM/SQatarShippingCompany(QShip),Qatar.SCIandMOLarethelargestshareholders,eachholding29.08%shareswhileNYKLine17.89%,KLine8.95%&QShipholds15%respectively.TheSharesheldbytheCorporationandotherpartners inthetwojointventureCompanieshavebeenpledgedagainstloansprovidedbylenderbankstothesecompanies.IndiaLNGTransportCompanyNo.1LtdownsandoperatesoneLNGCarrierDishaandIndiaLNGTransportCompanyNo.2LtdownsandoperatesoneLNGCarrierRaahi.

(C) IndiaLNGTransportCompanyNo.3Ltd.isthe3rdjointventurecompanywhichownsandoperatesoneLNGCarrierAseem.Thecompany is promoted by theCorporation and three Japanese partners viz.MOL,NYKLines, K Line alongwithM/SQatarGasTransportCompany(QGTC),QatarandM/sPetronetLNGLimited(PLL),Indiawhoaretheotherpartners.SCIandMOLarethelargestshareholderswith26%shareeach,whileNYK,KLine,QGTCandPLLhold16.67%,8.33%,20%and3%respectively.TheSharesheldbytheCorporationandotherpartnersinthejointventurecompanyhavebeenpledgedagainstloansprovidedbylenderbankstothis company.

(D) IndiaLNGTransportCompany(No.4)Pvt.Ltd.isthe4thJointVentureCompanyispromotedbytheCorporationandthreeJapanesepartnersvizNYK,MOLandKLinealongwithPLL,India.SCI,NYKandPLLarethelargestshareholderswith26%shareeach,whileMOLandKlinehold15.67%and6.33%respectively.TheSharesheldby theCorporationandotherpartners in the jointventurecompanyhavebeenpledgedagainstloansprovidedbylenderbankstothiscompany.IndiaLNGTransportCompany(No.4)Pvt.LtdownsandoperatesoneLNGCarrierPrachi.

(E) Inland&CoastalShippingLtdisthe100percentSubsidiary.NOTE 7(b): LOANS

Particulars31 March 2020 31 March 2019

Current Non-Current Current Non-CurrentConsidered good - Secured Loanstoemployees 181 1,896 347 1,562

Considered good - Unsecured Loanstorelatedparties* 610 23,512 22,034 - SecurityDeposits - 622 - 474Total loans 791 26,030 22,381 2,036

*Thisincludesamountof`609.70lakhsremittedbyIndiaLNGTransportCompany(No.4)Pvt.Ltd.on31st March2020whichcreditwasreceivedbySCIon01/04/2020.NOTE 7(c): OTHER FINANCIAL ASSETS


Current Non-Current Current Non-CurrentFinancial Assets carried at amortised cost

Advances recoverable in cash-FromRelatedParties(ReferNoteno30fordetails)InterestReceivable* 342 - 302 -

Bankdepositswithmorethan12monthsmaturity-TermDeposits - - - - ReceivablefromSubsidiary-ICSLLtd. 10 - 10 -





Current Non-Current Current Non-CurrentIncomeaccruedondeposits/investments 1,380 - 2,985 - ClaimRecoverable 7,837 - 11,060 - UnbilledRevenue(ContractAsset)(ReferNoteno33fordetails) 46,752 - 33,968 - Less:Provisionfordoubtfuldebts - - (650) -

46,752 - 33,318 - Others 1 7 1 7 Total other financial assets 56,322 7 47,676 7

*Thisincludesamountof̀ 266.94lakhsand̀ 8.36lakhsremittedbyIndiaLNGTransportCo.(No.3)Ltd.&IndiaLNGTransportCompany(No.4)Pvt.Ltd.respectivelyon31stMarch2020whichcreditswerereceivedbySCIon01/04/2020.NOTE 7(d): CURRENT INVESTMENTS

Particulars Face value

31 March 2020 31 March 2019No. of shares/

Units Amount No. of shares/Units Amount

Investment carried at fair value through profit or lossUnquoted(a) Investment in equity instruments (fully paid-up) 295,029(Prev.yr.295,029)sharesof1USDeachfullypaidofISIMaritimeLtd.(SharesarereceivedasagiftfromIrano-HindShippingCo.Ltd.)

1USD 295,029 - 295,029 -

500(Prev.yr.500)sharesof`10eachfullypaidupofJaladhiShippingServices(India)Pvt.Ltd.(SharesarereceivedasgiftfromIrano-HindShippingCo.(P.J.S)*

`10 500 -

16(Prev.yr.16)sharesofUSD1eachfullypaidupofBIISMaritime(SharesarereceivedasgiftfromIrano-HindShippingCo.(P.J.S)**

1USD 16 - 16 -

Total (Equity instruments) - - Total current investments - - Aggregateamountofquotedinvestmentsandmarketvaluethereof - - Aggregateamountofunquotedinvestments - - Aggregate amount of impairment in the value of investments - - InvestmentscarriedatfairvaluethroughProfitandLoss - - *JaladhiShippingServices(India)PvtLtdisdissolvedthereforesharesofthecompanyarenotshownforFY2019-20.**Shareshavepledgedtobanksagainstloansgivenbythem.NOTE 7(e): TRADE RECEIVABLES

Particulars 31 March 2020 31 March 2019TradeReceivable* 82,672 85,515Less:Allowancefordoubtfuldebts** 22,049 25,623Total receivables 60,623 59,892 CurrentPortion 60,623 59,892NonCurrentPortion - -

BREAK UP OF ABOVE DETAILSParticulars 31 March 2020 31 March 2019

Consideredgood-Secured 7,710 8,474Consideredgood-Unsecured 54,766 53,311




Particulars 31 March 2020 31 March 2019TradeReceivableswhichhavesignificantincreaseinCreditRisk 19,138 20,124Trade Receivables - credit impaired 1,058 3,606Total 82,672 85,515 Allowance for doubtful debts 22,049 25,623Total trade Receivables 60,623 59,892 *SignificantReceivablesfromrelatedparties(refernote30)**ReferNoteno.38forfurtherdetailsNOTE 7(f): CASH AND CASH EQUIVALENTS

Particulars 31 March 2020 31 March 2019Balanceswithbanks- in current accounts 21,830 5,995- in deposits account with original maturity of less than three months 2,648 3,543Total cash and cash equivalents 24,478 9,538

NOTE 7(g): BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTSParticulars 31 March 2020 31 March 2019

MarginmoneyforBankGuarantee - 257OtherDepositswithbanks* 69,299 90,021Total Bank balances other than cash and cash equivalents 69,299 90,278 *ReferNote35forDepositspledgedwithbanksforBorrowings*FixeddepositincludesunutilisedfundsofFPOason31stMarch2020is`13385lakhs(ason31stMarch2019is`13385lakhs).NOTE 8: INCOME TAX ASSETS(NET)


Current Non-Current Current Non-CurrentIncomeTaxAssets(NetofProvision)* - 20,112 - 15,562Income Tax Assets (Net) - 20,112 - 15,562 *ReferNoteno.29forfurtherdetailsNOTE 9: OTHER ASSETS


Current Non-Current Current Non-Current(a) Advances other than Capital Advances

Advances to employeesi)Secured,ConsideredGood - - - - ii)Unsecured,ConsideredGood 495 - 647 -

495 647Less:ProvisionforDoubtfulAdvances 205 - 100 -

290 547Advances to Othersi)Unsecured,ConsideredGood 8,952 - 9,892 - ii)Unsecured,ConsideredDoubtful 1,519 - 1,638 -

10,471 - 11,530 - Less:ProvisionforDoubtfulAdvances 1,519 1,638

8,952 - 9,892 -





Current Non-Current Current Non-Current(b) OthersExcess-GratuityFund - 4,573 - 3,265Balanceswithstatutoryauthorities-CenvatCreditReceivables 95 - 95 - -ServicetaxpaidunderProtest - 3,122 - 3,100-GSTReceivable* 9,706 - 11,236 - -PredepositwithIncomeTaxDepartment - 974 - 974

9,801 4,096 11,331 4,074MATCreditOpening 1,134 - - - Add:Creditduringtheyear - - 1,134 - Less:MATWrittenoff** 1,134 - - -

- - 1,134 - SubsidyforPassengerservice(Myanmmar)*** 467 - 467 - Less:ProvisionforDoubtfulAdvances 467 - 467 -

- - - - PrepaidExpenses 503 - 640 - Others 1 966 1 841

Total other assets 19,547 9,635 23,545 8,180 *Asaprudentpractice,theCompanyistakingGoodsandServiceTaxCreditintheElectronicCreditLedgeruponpaymentoftheliabilities.Hence,thereisadifferenceintheamountofcreditappearinginbooksofaccountsandtheElectronicCreditLedgeroftherespectivestates.Therefore,thebalanceinInputTaxCreditledgersason31stMarch,2020willbeprogressivelyreviewedandavailedfordischargeofGoodsandServiceTaxliabilitypayablebytheCorporation.**Asperthenewlyintroducedsection115BAAoftheAct,witheffectfromtheyearended31stMarch2020,alldomesticcompaniesshallhaveanoptiontopayincometax@22%subjecttoconditions.Theeffectivetaxrateforsuchcompaniesshallbe25.17%[tax@22%plussurcharge@10%and4%cess(ontaxandsurcharge)].Further,suchcompaniesoptingforreducedtaxrateu/s115BAAshallnotberequiredtopayMAT. Inviewoftheabove,asSCIhasoptedforlowertaxrateinFY2019-20,theMATcreditof` 1134lakhshadtobewrittenoff.***ThispertainstoIndiaMyanmmarServicestartedon02.10.2014onthedirectionsofMinistryofShipping.TheservicewascompletedonNov2016.NOTE 10: INVENTORIES

Particulars 31 March 2020 31 March 2019FuelOil* 13,138 15,979Total inventories 13,138 15,979 *WritedowninventoriescarriedatNRVof` 829.14lakhsason31.03.2020andrecognisedasexpense.NOTE 11: ASSETS CLASSIFIED AS HELD FOR SALE

Particulars 31 March 2020 31 March 2019FleetandContainerheldforSale 90 95Less:Impairmentlossallowance (90) (95)

- - Investment held for Sale1,00,000(Prev.yr.1,00,000)sharesof`10eachfullypaidupofSAILSCIShippingCompanyPvt.Ltd.

10 10

Less:Impairmentlossallowance (3) (3) 7 7




Particulars 31 March 2020 31 March 2019IranoHindShippingCo.Ltd. 39 39Less:Impairmentlossallowance (39) (39)

- - AdvancetoIranoHindShippingCo.Ltd. 23 23Less:ProvisionforDoubtfuladvances (23) (23)

- - Total assets held for sale 7 7 a) TheGovernmentof India inmeetingof cabinet heldon02.04.2013approved theproposal for dissolutionof IranoHindShipping

Company(IHSC)andsplittingtheassets/liabilitiesofIHSCbetweenJointVenturepartnersshallbeundertaken.TheCompanyholds49%inIHSC,ajointventurecompanyincorporatedinIranonwhichsanctionhasbeenimposedbyUnitedNationsOrganisation(UN).SubstantiveeffortsaremadetoeventuallydissolvetheJVwhichisdependingongeopoliticalenvironmentandsanctionsimposedbyUNwhichiscompletelybeyondSCI'scontrol.SCIshallremaincommittedbythedecisionofcabinetandthereforeismakingalleffortsfordissolutionofJV.Further,GovernmentofIndiavideletterdated08thMay2018hasadvisedSCItogoaheadwiththedissolutionofIHSC. UnderIndAS,investmentinIranoHindhasbeenwrittenoffduringFY16-17toreflectitsfairvalue.

b) TheCompanyenteredintoajointventureagreementwithSteelAuthorityofIndiaLtd.withparticipationinterestintheratioof50:50andpromotedajointlycontrolledentitySAILSCIShippingPvt.Ltd.(SSSPL).Thesaidcompanywasincorporatedon19.05.2010withan authorised share capital of ` 1000lakhs.TheCompanyhassubscribedequitycapitalof100000sharesof`10eachamountingto` 10lakhs.Ithasbeendecidedbythejointventurepartnerstowindupthiscompany.UnderIndAS,investmentinSSSPLhasbeenwrittendownduringFY15-16toreflectitsfairvalue.

Non-recurring fair value measurementsInvestmentsclassifiedasheldforsaleduringthereportingperiodismeasuredatthelowerofitscarryingamountandfairvaluelesscoststosellatthetimeofthereclassification,resultingintherecognitionofawritedownof`42Lakhs(Previousyear`3Lakhs)asimpairmentlossinthestatementofprofitandlossinFY2016-17.Thefairvalueoftheinvestmentsweredeterminedusingthebookvalueapproach.Thisisalevel3measurementasperthefairvaluehierarchyassetoutinfairvaluemeasurementdisclosures(refernote37).

NOTE 12: EQUITY SHARE CAPITAL

Particulars As at 31 March 2020

As at 31 March 2019

Authorised1,00,00,00,000[31March2019:1,00,00,00,000and1April2018:1,00,00,00,000]EquitySharesofINR10each

100,000 100,000

Issued, subscribed and fully paid up46,57,99,010[31March2019:46,57,99,010and1April2018:46,57,99,010]EquitySharesofINR10each

46,580 46,580

46,580 46,580a) Reconciliation of number of shares

ParticularsAs at 31 March 2020 As at 31 March 2019

Number of shares Amount Number of shares Amount

Equity Shares :Balanceasatthebeginningoftheyear 465,799,010 4,657,990,100 465,799,010 4,657,990,100Add:Bonussharesissuedduringtheyear - - - - Less:Sharesboughtbackduringtheyear - - - - Balance as at the end of the year 465,799,010 4,657,990,100 465,799,010 4,657,990,100




b) Details of equity shares held by shareholders holding more than 5% of the aggregate shares


Number of shares

% of share holding Number of shares % of share

holdingEquity shares1.PresidentofIndia 296,942,977 63.75 296,942,977 63.752.LifeInsuranceCorporationofIndia 48,077,895 10.32 55,473,797 11.91

345,020,872 74.07 352,416,774 75.66c) FortheperiodoffiveyearsimmediatelyprecedingthedateasatwhichtheBalanceSheetisprepared,noshareshavebeenissuedfor

considerationotherthancash,noshareshavebeenissuedasbonusshares&noshareshavebeenboughtback.d) Rights/Preference/RestrictionattachedtoEquityShares: TheCompanyhasonlyoneclassofEquityshareshavingparvalueof` 10.Eachshareholderofequitysharesisentitledtoonevote

pershare.IntheeventofliquidationoftheCompany,theholderofequityshareswillbeentitledtoreceivetheremainingassetsofthe company after distribution of all preferential allotment in proportion to their shareholding. The dividend whenever proposed by the BoardofDirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting.

e) TheCompanydoesnothaveholdingcompany.f) Therearenosharesreservedforissueunderoptionandcontract/commitmentforthesaleofshares/disinvestment.NOTE 13: OTHER EQUITYSurplus

Particulars As at 31 March 2020 As at 31 March 2019(i) Capitalreserve 15,205 15,205(ii) Securities premium 52,177 52,177(iii) Generalreserve 553,527 553,527(iv) Tonnage Tax Reserve 2,100 - (v) Retained Earnings 60,229 30,632

Total Surplus 683,238 651,541 (i) CAPITAL RESERVE

Particulars As at 31 March 2020 As at 31 March 2019Opening balance 15,205 15,205Add: Transfer from Retained Earnings - - Less:Transferredtogeneralreserve - - Closing Balance 15,205 15,205

(ii) SECURITIES PREMIUMParticulars As at 31 March 2020 As at 31 March 2019

Opening balance 52,177 52,177Add:PremiumonsharesheldintrustforemployeesunderESOSScheme - - Add:Liabilitypertainingtoshareissueexpensesnolongerrequiredwrittenback - - Closing Balance 52,177 52,177

(iii) GENERAL RESERVEParticulars As at 31 March 2020 As at 31 March 2019

Opening balance 553,527 553,527Add:TransferfromTonnageTaxReserve(Utilised) - - Closing Balance 553,527 553,527




(iv) TONNAGE TAX RESERVEParticulars 31 March 2020 31 March 2019

Opening balance - - Less:TransfertoTonnageTaxReserve(Utilised) - - Add:TransferfromSurplusintheStatementofProfitorLoss 2,100 - Closing Balance 2,100 -

(v) RETAINED EARNINGSParticulars 31 March 2020 31 March 2019

Opening balance 30,632 42,267Add:Profit/(Loss)fortheyear 30,235 (12,199)Items of other comprehensive income recognised directly in retained earningsRemeasurementsgain/(loss)ofdefinedbenefitplans 1,462 564

Adjustments:Less:TonnageTaxReserve 2,100 - Closing Balance 60,229 30,632 RetainedearningsincludeaccumulatedOCIof`2486.28lakhs(Previousyear`1024.28lakhs)Nature and Purpose of other reservesCapital Reserve:TheamountofsalesproceedsinexcessoforiginalcostofshipssoldbytheCompany.Thisisnotavailablefordistributionof dividend but can be utilised for issuing bonus shares.Securities Premium:TheamountreceivedinexcessoffacevalueoftheequitysharesisrecognisedinSharePremiumReserve.Thisisnotavailable for distribution of dividend but can be utilised for issuing bonus shares.General Reserve:GeneralReserverepresentsappropriationofretainedearningsandareavailablefordistributiontoshareholders.Tonnage Tax Reserve/Tonnage Tax Reserve (Utilised):This reserve isastatutory reserveasper requirementofsection115VTof theIncomeTaxAct,1961forthepurposeofcomplyingwiththeconditionsforapplicabilityoftonnagetaxscheme.Retained Earnings:RetainedEarnings represents surplus/accumulated earningsof theCorporation and are available for distribution toshareholders.Other comprehensive income (OCI):OCIcomprisesitemsof incomeandexpenses(includingreclassificationadjustments)thatarenotrecognisedinprofitorlossasrequiredorpermittedbyIndianAccountingStandards.ThecomponentsofOCIinclude:re-measurementsofdefinedbenefitplans,gainsandlossesarisingfromtranslatingthefinancialstatementsofaforeignoperationetc.Note: 14: Financial LiabilitiesNOTE 14(a): LONG-TERM BORROWINGS


Non Current Current* Non Current Current*Secured

Term Loans:Rupee loans from banks A - - - - Foreigncurrencyloansfrombanks B 111,198 107,739 200,788 95,580

Total C 111,198 107,739 200,788 95,580 Unsecured

Term Loans:Rupee loans from banks A - - - - Foreigncurrencyloansfrombanks B 56,540 - 51,878 20,751

Total C 56,540 - 51,878 20,751 Long-term borrowings 167,738 107,739 252,666 116,331




Maturity Profile

SecuredLoans

1-2years 2-3years 3-4years Beyond4years38,507 19,560 17,943 35,188

UnsecuredLoans1-2years 2-3years 3-4years Beyond4years6,058 8,077 8,077 34,328

*RepresentscurrentmaturitiesofLongtermborrowingsincludedin"FinancialOtherCurrentLiabilities"Thecarryingamountsoffinancialandnon-financialassetspledgedassecurityaredisclosedinnote35.NOTE 14(b): LEASE LIABILITIES


Non Current Current Non Current CurrentLeaseLiabilities 2,395 209 - - Total Lease Liabilities 2,395 209 - -

NOTE 14(c): OTHER FINANCIAL LIABILITIES


Current Non Current Current Non CurrentFinancial Liabilities at amortised costSecurityDeposits 1,013 25 861 41Currentmaturitiesoflong-termdebt 107,739 - 116,331 - Interest accrued but not due on borrowings 2,511 - 3,939 - UnpaidDividend - - - - OthersOtherDepositspayable 252 - 269 - EmployeerelatedLiabilities 9,197 - 8,618 - Others* 8,684 - 1,601 -

Total other financial liabilities 129,396 25 131,619 41 *Includesbookoverdraftof`7907lakhs(Previousyear`729lakhs)forwhichreconciliationhasbeendone.NOTE 14(d): CURRENT BORROWINGS

Particulars 31 March 2020 31 March 2019UnsecuredfromBanksrepayableondemand

Rupee loans from banks - - Foreigncurrencyloansfrombanks 198,642 158,748

Total current borrowings 198,642 158,748 Statement of changes in liabilities for which cash flows have been classified as Financing Activities

ParticularsLiabilities from Financing Activities

Long Term borrowings

Short Term borrowings Total

Net debt as at 1st April 2019 372,936 158,748 531,684Cashflows (116,325) 26,813 (89,512)ForeignExchangeadjustments 22,805 13,081 35,886Interest expense 14,492 6,197 20,689InterestPaid (15,920) (6,197) (22,117)Net debt as at 31st March 2020 277,988 198,642 476,630




Note 14(e): Trade payables

Particulars 31 March 2020 31 March 2019Trade payables

(a) total outstanding dues of micro enterprises and small enterprises; and 629 545(b)totaloutstandingduesofcreditorsotherthanmicroenterprisesandsmallenterprises* 94,931 126,725Total trade payables 95,560 127,270

*SignificantPayablefromrelatedparties(refernote30)Disclosure requirement under MSMED Act, 2006

Particulars 31 March 2020 31 March 2019(a) (i) the principal amount remaining unpaid to any supplier at the end of each accounting year; 629 545(ii)the interest due thereon (to be shown separately) remaining unpaid to any supplier at the end of each accounting year;

3 -

(b) theamountof interestpaidby thebuyer in termsof section16of theMicro,Small andMediumEnterprisesDevelopmentAct,2006(27of2006),alongwiththeamountofthepaymentmade to the supplier beyond the appointed day during each accounting year;

- -

(c) the amount of interest due and payable for the period of delay in making payment (which has beenpaidbutbeyondtheappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedundertheMicro,SmallandMediumEnterprisesDevelopmentAct,2006;

- -

(d) the amount of interest accrued and remaining unpaid at the end of each accounting year; and 3 - (e) the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose ofdisallowanceofadeductibleexpenditureundersection23oftheMicro,SmallandMediumEnterprisesDevelopmentAct,2006.

3 -

TheinformationhasbeengiveninrespectofsuchvendorstotheextenttheycouldbeidentifiedasMicro,SmallandMediumenterprisesonthebasisofinformationavailablewiththeCompany.NOTE 15: PROVISIONS


Current Non Current Current Non CurrentEmployee Benefit ObligationsProvisionforleaveencashment 263 5,159 360 5,483PostRetirementMedicalScheme 217 1,338 239 873

480 6,497 599 6,356 Other ProvisionsInsurance&cargoclaims* 527 - 531 -

527 - 531 - Total 1,007 6,497 1,130 6,356

Short term provision As at31st March 2019

Provided during the

year

Utilised during the year

Amount reversed

As at31st March 2020

Other ProvisionsInsurance&cargoclaims* 531 122 126 - 527

Total 531 122 126 - 527 *Representsprovisionofamountpayable/bornebytheCompanyagainstInsurance&cargoclaims




NOTE 16: DEFERRED TAX LIABILITIESParticulars 31 March 2020 31 March 2019

Deferredtax-upwardvaluationofPPE 7,450 9,073Deferredtax-upwardvaluationofFinancialAsset 81 80Deferred Tax Liabilities(Net) 7,531 9,153

NOTE 17: OTHER CURRENT LIABILITIES


Current Non Current Current Non CurrentDeferredTradeReceivable(ContractLiability)(ReferNoteno33fordetails)

1,238 - 688 -

AdvancesandDeposits 7,967 - 5,466 - Others

Statutory dues 2,896 - 1,639 - OthersCurrentLiabilities 47 - 42 - SubsidyforBangladesh-Myanmmar&Srilanka* - - 2,024 -

Total other current liabilities 12,148 - 9,859 - *MinistryofShippingprovidedsubsidyof`19croreinthefinancialyear2017-18toSCIforrunningadirectshippingservicefromIndiatoBangladesh-MyanmarandSrilanka-Maldives.ActionforcharteringavesselforrunningtheservicewasdeferredsinceSCIawaiteddirectionfromMinistryofShippingtostarttheService.DuringFY2019-20,MinistryofShippingdirectedSCItorefundthesubsidyamount.Accordingly subsidy amount and interest earned from date of receipt of funds till date of refund was paid to Ministry of Shipping. Total amount refundedbySCIincludinginterestis`20.53Crores.NOTE 18: LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS CLASSIFIED AS HELD FOR SALE

Particulars 31 March 2020 31 March 2019Othercurrentliabilities* 22,346 20,504Total Liabilities of disposal held for sale 22,346 20,504 *ReferNoteNo.11(a)forfurtherdetails.NOTE 19: REVENUE FROM OPERATIONS

Particulars 31 March 2020 31 March 2019Freight 318,540 286,639CharterHire 82,445 65,310Demurrage 17,126 14,508ContractRevenue:Coreshippingactivities 102 376Incidental activities 9,170 6,441Reimbursement of expenses 10,639 10,298

Total 438,022 383,572

NOTE 20: OTHER OPERATING REVENUEParticulars 31 March 2020 31 March 2019

Training&Consultancyfee 2,512 1,975SundryReceipts(Core) 327 1Sundry Receipts (Incidental) 65 43RecoveryofInsurance&PIClaims 1,618 1,694Total 4,522 3,713




NOTE 21: OTHER INCOMEParticulars 31 March 2020 31 March 2019

Interest on financial assets carried at amortised costa)FixedDepositswithBanks 5,755 6,339b)LoanstoEmployees 218 165c)LoanstoJointVenture(ReferNoteno.30) 1,365 1,662d) Others 780 879

DividendFromMutualFund 185 287Other non operating incomeProfitonSaleofFixedAssetsa)SaleofShips(Net) 9,314 11,392b)SaleofOtherFixedAssets 22 3

Profitonsaleofinvestments 226 - Profitonsaleofbunker 153 457GainorLossonFairvaluationofinvestment 12 232ExcessProvisions&UnclaimedCreditWrittenBack 6,212 1,778Other Miscellaneous Income 53 29Total 24,295 23,223

NOTE 22: COST OF SERVICES RENDEREDParticulars 31 March 2020 31 March 2019

Direct Operating Expenses :AgencyFees 1,164 1,281Brokerage 1,281 2,286Commission 236 379Stevedoring,Dunnage,CargoExpensesEtc.&SlotExpensesOnJointSectorContainerServices(Net)

17,198 16,906

Marine,LightAndCanalDues 42,224 42,543FuelOil(Net) 112,125 110,212WaterCharges 347 440Manning expenses 143 1,028Honorarium&Trainingexpenses 434 603

Hire Of Chartered Steamers 42,300 35,598Other Indirect Operating Expenses TransferAndRepatriationAndOtherBenefits 218 170Stores&Spares* 17,952 18,714Sundry Steamer Expenses 2,615 3,526Repairs And Maintenance and Survey Expenses 9,701 13,678InsuranceAndProtection,IndemnityClubFees&InsuranceFranchise 7,887 5,932ProvisionforOffHireEtc. - -

Total 255,825 253,296 *Includesamountof`Nil(PreviousYear`803lakhs)towardsServedfromIndiaScheme(SFIS).UnderSFIS,Scripsreceivedareutilisedagainstthecustomdutyliability&SFISschemebeingGovernmentGrant,isaccountedasstatedintheAccountingpolicyonGovernmentGrant.ThevalidityofSFISlicenseswithSCIisexpiredinApr'19.SCIhaveappliedforextensionofthevaliditydatebutsamenotacceptedsofar.AccordinglySCIcouldnotuseanyofthecreditinFY2019-20.HencethevalueforFY19-20isNIL.




NOTE 23: EMPLOYEE BENEFIT EXPENSEParticulars 31 March 2020 31 March 2019

A) Floating StaffWages,BonusAndOtherExpensesOnFloatingStaff 25,736 25,319Gratuity* 783 557 ContributionToProvidentFund 312 301StaffWelfareExpenses 284 258

B) Shore StaffSalaries,Wages,Bonusetc 17,812 15,834Gratuity* 102 45ContributionToProvidentFund 1,086 1,067ContributionToPension 1,096 1,026StaffWelfareExpenses** 144 110

C)RemunerationtoDirectors 299 240Total 47,654 44,757 *ReferNoteNo.31forfurtherdetails**Includesamountof̀ 129.03lakhs(PreviousYear̀ 94.07lakhs)amortisationofdeferredemployeecostasemployeeloansaremeasuredat amortised cost.NOTE 24: FINANCE COSTS

Particulars 31 March 2020 31 March 2019Interest on:

- Rupee loans 28 20-Foreigncurrencyloans 19,567 23,323-LeaseLiability 249 -

Exchange differences regarded as an adjustment to borrowing costs 15,476 11,319Otherborrowingcosts* 1,093 1,243Total 36,413 35,905 *Includesamountof`995.92lakhs(PreviousYear` 1087.18lakhs)amortisationofupfrontfeeforborrowingstakenoverthetenureoftheborrowing by applying the effective interest rate method.NOTE 25: DEPRECIATION AND AMORTISATION EXPENSE

Particulars 31 March 2020 31 March 2019DepreciationonProperty,plantandequipment 66,725 65,760DepreciationonRightofUseAssets* 293 - Amortisation of Intangible Assets 109 86Total 67,127 65,846 *ReferNoteno.6forfurtherdetails.NOTE 26: OTHER EXPENSES

Particulars 31 March 2020 31 March 2019Power&Fuel 441 379Rent 7 267Repairs and Maintenance-Building 514 543- Others 1,345 1,433

Insurance, Rates and Taxes 187 87




Particulars 31 March 2020 31 March 2019Auditors'Remuneration(DetailinNoteno26(a)) 61 68EstablishmentCharges 2,165 2,215Advertisement&Publicity 60 90Legal&professional 182 385Postage,TelephoneTelegram&Telex 64 126Printing&stationery 104 113Training,Seminar&ConferenceFee 23 23Travel&Conveyance 361 578 Directors'SittingFees 15 21Directors'TravelExpenses 22 32Debts/Advanceswrittenoff 2,782 986InterestandPenalties 4 4BankCharges 255 263ServicetaxineligibleforCENVAT 48 - GSTineligibleITC 485 61CSRExpenditure(DetailinNoteno26(b)) 336 582NetlossonForeignCurrencyTransaction/Translation 16,180 6,403ProvisionsProvisionforDoubtfulDebtsandAdvances (839) 3,195ForeignTaxation 30 49WriteoffofFixedAssets 242 191ProvisionofAssetheldforsale (5) 95Total 25,069 18,189

NOTE 26(a): DETAILS OF PAYMENTS TO AUDITORSParticulars 31 March 2020 31 March 2019

Payment to auditorsStatutory auditors

a) Audit fees 32 32b)CertificationWork 27 32c)Travelling&OutofPocketExpenses 2 4

Total 61 68 NOTE 26(b): CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE

Particulars 31 March 2020 31 March 2019(i)GrossamountrequiredtobespentbytheCompanyduringtheyear 88 420(ii) Amount spent and paid during the year on(a)Construction/acquisitionofanyasset 109 211(b) On purpose other than (a) above 227 371

Total 336 582 NOTE 27: EARNINGS PER SHARE

Particulars 31 March 2020 31 March 2019(a) Basic and diluted earnings per shareProfitattributabletotheequityholdersofthecompany(A) 30,235 (12,199)




Particulars 31 March 2020 31 March 2019(b) Weighted average number of shares used as the denominatorWeightedaveragenumberofequitysharesusedasthedenominatorincalculatingbasicanddilutedearningspershare(B)

465,799,010 465,799,010

BasicandDilutedearningspershareattributabletotheequityholdersofthecompany(A/B)(in`) 6.49 (2.62)

NOTE 28: CONTINGENT LIABILITIES AND COMMITMENTS(a) Contingent Liabilities

Particulars As at 31 March 2020 As at 31 March 2019I. Claims against the company not acknowledged as debtsa)StateGovernments/LocalAuthorities 2,001 1,835b)CPSEs 1,437 1,402c)CentralGovernmentDepartments*

a)IncomeTax&SalesTax 27,836 25,080b) Service Tax @ 157,939 268,101c) Others - -

d)Others# 7,154 21,238II. Guarantees given by the Banks

On behalf of the company 5,571 3,047OnbehalfofJointVenturetotheextentofthecompany'sshare 5,399 4,954

III. Undertaking cum Indemnity given by Company 6,516 6,516IV. Bonds/Undertakings given by the Company to Customs Authorities 38,187 34,838V. Corporate Guarantees/Undertakings

a)InrespectofJointventures Nil Nilb) Others 3,684 4,432

(b) Contingent Assets

Particulars As at 31 March 2020 As at 31 March 2019I. Claims by the Company not acknowledged as asseta)StateGovernments/LocalAuthorities Nil Nilb)CPSEs Nil Nilc)CentralGovernmentDepartments 150 150d) Others 358 545

(c) Commitments

Particulars As at 31 March 2020 As at 31 March 2019

I.Estimated amount of contracts remaining unexecuted on capital account (net of advances paid) and not provided for

4457 3,837

II. Uncalledliabilityonsharesandotherinvestmentspartlypaid Nil NilIII. OtherCommitmentsintheformofequitysharewithJV's Nil Nil*ThecontingentLiabilityincludescasesdecidedinfavourofSCIamountingto`14800lakhs.Thereafter,departmenthavegoneinappeal.@ Includes a sum of `71,282lakhsasinterest(previousyear`105,137lakhs).# Details of other Cases




Sl. No PARTICULARS Brief Description

As at 31st March,

2019Addition Deletion

As at 31st March,

2020

1

SVenkiteswaran-ChokhaniIntlLtdNew

Delhi-drydockofDadabhaiNaoroji

MT. D.B. Naoroji stemmed for drydock repairs with M/s.Chokhani International,ChennaiduringJuly1997withquotedrepair period of 45 days and stemmed cost of INR 792.16lakhs. The shipyard took total of 229 days i.e. 184 days inexcess of quoted period. Since there were additional repairswhich cropped up, after opening of machineries during drydock period,SCIallowedadditional66daysi.e.fromSCIsidetotalrepairperiodistobe111days.YardsubmittedinvoicesforINR1736.56lakhsinMarch1998.Yardunwillingtoacceptdelayincompletion of repairs and relevant penalty due to delayed repair completion.

4,864 174 - 5,038

2Mercuriav/sSCIMTMaharshiParashruam

M.T Maharshi Parashuram was fixed on voyage charter onaccount of Mercuria Energy Trading Pte Ltd via C/P dated20.01.2012.VesselloadedcargoofFuelOil(380CST).Vesselcompletedcargoloadingon12thFebruary2012andsailedfordischargeporton13thFebruary2012.DuringloadingatVadinar(Essar Terminal), it was observed that main cargo leaked into slop tank (Starboard). The reason for the same as advised by MasterwasduetofailureofmechanicalValvebetweenCargoTanks and Slops Tank (Starboard).

35 3 - 38

3

M.V.VishvaShakti(1995caseM/s.S.S.JainvsSCILtd

defendant)

M.V.VishvaShakti-refundofEMDclaimanthasrequestedofEMDof`7lakhswithinterestat24%p.a.whichwasforfeitedbySCIfornotfulfillingtheterms&conditionsofthetender.

24 1 - 25

4

M.V.SamratAshok(1997caseM/s.ChaudharyIndvsSCILtd

defendant)

M.V.SamratAshok-refundofEMD.TheclaimanthadrequestedforrefundoftheirEMDof`10lakhswithinterestthereon@16%p.a or at the highest rate on deposits by aNationalisedbank.TheEMDwasforfeitedbySCIfornotfulfillingtheterms&conditionsoftender.

32 1 - 33

5

M.T.CVRaman(2013case

SYMCOMIMPEXclaimant directed SCItoshowcause as to

why the loss to Symcom leviable onSCIshouldnotberecovered/

demanded)

M.T.CVRAMANshowcausenoticefromSYMCOMIPEXPVT.LTD.MUMBAITheclaimanthaddirectedSCItoshowcausesastowhytheLOSSTOSYMCOMleviableontheSCIshouldnotberecovered/demanded.

80 - - 80

6

Amsterdam Bridge(Explosionof cargo in ship)

Kline

AmsterdamBridge(Explosionofcargoinship)Kline 14,526 - 14,526 -





As at 31st March,


As at 31st March,

2020

7M/SNKTraders(2002case)

MoneyclaimagainstSCIfornon-paymentofparty'sbillsof` 29,91,871/-andthesecuritydepositof` 1,25,000/

84 4 - 88

8

RabirunVinimayvsA.L.Logistics&Ors.(SCI

respondent no. 2)2015case

M/s. Rabirun Vinimay pvt ltd, had imported used plant &machineryfromUKtoHaldiaascontainerizedshipments(SOC)throughseveralshippinglinesinNov2011.Howeverconsigneecould not take delivery of cargo immediately as they could not obtain necessary clearance / permission from customs.Since thecontainersareSOCboxes,SCI's responsibilitywasonly till landing of the containers at Haldia. A legal notice dated 09.04.2015fromthelawyersofM/sRabirunVinimaypvt.ltdinthis context.

100 - - 100

9

BLTransport&BLShippingagencies&UnitedIndiaIns

Coltd

Towards Repair cost of pay loader used for loading of barytee powder

32 16 - 48

10Mr.JosephArputhanath

This case was closed on 30.11.2009 as the petition wasdisposedbytheHighCourt,Chennaion30.11.2009directingthePetitioner(pleasefillupname&relationtoSCI)toapproachtheNationalMaritimeBoard(NMB).AsdirectedbytheHon'bleHigh Court, Petitioner has filed a petition against NMB–RehabilitationCentre,whichhasdeclaredthatthepetitionerisentitled to compensation amounting to ` 1,25,000/-.

10 - - 10

11S. Rajasekaran ERR-2CDCNO

SeamanS.RajasekaransignedArticleon20.09.1996andwasdeclaredpermanentlyunfitforseaserviceon20.06.1997afterbeing diagnosed for DiabetesMellituswith Parkinson by SCIMedicalofficer.TheSeamanhadchallengedabovedecisionandfiledaWritPetition20941/2001beforeMadrasHighCourt.

22 - - 22

12GopalSelvamani-vs-SCI

Shri Gopal Selvamani, ERPO-III was relieved of service afterhis sickness and diagnosis of cancerous tumor by our Medical Officer,whichwas challenged by him and Commissioner forWorkman Compensation-II had awarded compensation of ` 55,251/-,

1 - - 1

13

Mrs.Periyammalw/olateNarayanaMuthuraja2.MallikaD/OlateNarayan

Narayana Muthuraja had travelled in SCI's passenger vesselm.v. Chidambaram, which arrived in Chennai on or about12.02.1985.VesselmetwithfireaccidentandintheaccidentNarayana Muthuraja died and SCI paid compensation of` 10,000/- to the passenger's family on 29.04.1985 onhumanitarian grounds. Later Mrs. Periammal, W/o NarayanaMuthurajaanddaughterMallikafiledaCivilSuit1250of1988claiming a sum of ` 1,30,000/-asdeathcompensation.

10 - - 10

14CanteenWorkersLalBavta

LalBavtaCase(absorptionofcanteencontractworker) 625 95 - 720





As at 31st March,


As at 31st March,

2020

15Mr.AbdulAzizIbrahim Makani

"Mr Abdul had claim against the insurance company andSCI. And court had ordered that 50% should be given byinsurance company and 50% by SCI the claim amount. Insurance company had paid the full amount to Mr Abdul and they had to claim 50 percent from SCI. Buttilldateinsurancecompanyhasnotaskedaboutthemoney."

1 - - 1

16Kolkata

TechnicalFleetPersonnel

CompensationrelatedFleetpersonnelcases 137 62 - 199

17 OSV CompensationcasesofOSVfleetpersonnel 266 - - 266

18Disabilitycases-Officers

DisabilitycompensationofFleetpersonnel(Officer)cases. 43 - 20 23

19 Disability-Crew DisabilitycompensationofFleetpersonnel(Crew)cases. 40 14 - 5420 DeathCases DeathcompensationcasesofFleetpersonnel 24 86 - 11021 Misc Fleetpersonnelmiscellaneouscases 263 - 23 240

22PFandGratuity

CasesCompensationcasesofwages,PF&Gratuity - 29 - 29

23 Manning agent (Wage/PF/Gratuity)

Manningagentcasesonwages,PF&Gratuity 19 - - 19

Total 21,238 485 14,569 7,154

(a) TheCompany’spendinglitigationscompriseclaimsagainsttheCompanyandproceedingspendingwithTax/Statutory/GovernmentAuthorities.Afterreviewofallitspendinglitigationsandproceedings,theCompanyhasmadeadequateprovisions,whereverrequiredanddisclosedthecontingentliabilities,whereverapplicable,initsfinancialstatements.TheCompanydoesnotexpecttheoutcomeoftheseproceedingstohaveamaterialimpactonitsfinancialposition.Futurecashoutflowsinrespectoftheabovearedeterminableonlyonreceiptofjudgments/decisionspendingwithvariousforums/authorities.

(b) Acontingentassetisapossibleassetthatarisesfrompasteventsandwhoseexistencewillbeconfirmedonlybytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheentity.Duringthenormalcourseofbusiness,severalunresolvedclaimsarecurrentlyoutstanding.Theinflowofeconomicbenefits,inrespectofsuchclaimscannotbemeasureddue to uncertainties that surround the related events and circumstances.

(c) The company issued bonds of ̀ 38,187lakhstocustomauthorities[a(IV)]ismainlyfordutyfreemovementofImport/Exportcontainers.The movement of contingent liabilities from [I (a)] to [(I (d)] under various categories is tabulated below.

Categories As at 31st March, 2019 Addition Deletion As at

31st March, 2020

a)StateGovernments/LocalAuthorities 1,835 166 - 2,001

b)CPSEs 1,402 35 - 1,437c)CentralGovernmentDepartmentsa)IncomeTax&SalesTax 25,080 4,332 1,576 27,836b) Service Tax 268,101 7,842 118,004 157,939c) Others - - - -

d) Others 21,238 485 14,569 7,154Total 317,656 12,860 134,149 196,367




Note 29: Income taxesThemajorcomponentsofincometaxexpensefortheyearsended31March2020and31March2019are:(a) Deferred Tax

Particulars 31 March 2020 31 March 2019Deferred tax relates to the following:UpwardfairvaluationofPPE 7,450 9,073Deferredtax-upwardvaluationofFinancialAsset 81 80Net Deferred Tax Liabilities 7,531 9,153

(b) Movement in deferred tax liabilities

Particulars 31 March 2020 31 March 2019Opening balance as of April 1 9,153 10,395Taxincome/(expense)duringtheperiodrecognisedinprofitorloss (1,622) (1,242)Closing balance as at March 31 7,531 9,153

(c) Income tax recognised in profit or loss

Particulars 31 March 2020 31 March 2019Income tax expenseCurrenttax

Currenttaxonprofitsfortheyear 4,850 7,090Tax pertaining to earlier years 154 - Deferredtax (1,622) (1,242)MATCreditEntitlement 1,134 (1,134)

Income tax expense 4,516 4,714 (d) The reconciliation of tax expense and the accounting profit multiplied by tax rate :

Particulars 31 March 2020 31 March 2019Profitbeforeincometaxexpense 34,751 (7,485)Less:Incomesubjecttotonnagetaxation 8,849 (33,239)Profitbeforetax,adjusted 25,902 25,754 Tax computed using applicable statutory tax rate 6,520 5,550 Tax effect of amounts which are not deductible(taxable) in calculating taxable income:

Impact of tonnage tax scheme 723 - Differenceintaxgainsandbookgains(Capitalgains) (2,346) - Tax pertaining to earlier years 154 - Differenceona/cofIndASadoption - 1,595Exemptincome-Dividendfrommutualfunds (47) (62)MAT credit adjusted 1,134 (1,134)ReversalofDeferredTaxLiability (1,622) (1,242)Others - 7

Income tax expense 4,516 4,714 Basis of applicable tax rate:

NormalTaxrate 22% 18.50%Surcharge 10% 12%HealthandEducationCess 4% 4%Applicable Tax rate 25.17% 21.55%




TheTaxationLaws(Amendment)Act,2019hasamendedtheIncomeTaxAct,1961,andtheFinance(No.2)Act,2019byinsertingsection115BAAwhichprovidesdomesticcompanieswithanoptiontooptforlowertaxrates,providedtheydonotclaimcertaindeductions.TheCompanyhaselectedtoexercisetheoptionandhasaccordinglyrecognisedProvisionforIncomeTaxfortheyearendedMarch31,2020,reversedtheaccumulatedMATcreditandre-measuredtheopeningbalanceofDeferredTaxLiabilityasatApril01,2019atthelowertax rate prescribed in the said section.This change has reduced provision for taxation by `1883lakhsanddeferredtaxliabilityby`137lakhsfortheyearendedMarch31,2020.Consequently,theCompanyhadalsoreversedaccumulatedMATcredit̀ 1134lakhs.Theoverallimpactofthischangeduringtheyearended31stMarch2020hasbeenrecognisedinthestatementofprofitandloss.(e) Current tax liabilities

Particulars 31 March 2020 31 March 2019Opening balance - - Add:Currenttaxpayablefortheyear 4,850 7,090Less:Taxespaid (4,850) (7,090)Closing balance - -

Note 30: Related party transactions(a) Control GovernmentofIndiaenterprisescontrolledbyCentralGovernment(b) Subsidiaries Inland&CoastalShippingLtdisthe100percentSubsidiary.(c) Joint Venture Companies 1. IranoHindShippingCo.Ltd. 2. IndiaLNGTransportCo.(No.1)Ltd. 3. IndiaLNGTransportCo.(No.2)Ltd. 4. IndiaLNGTransportCo.(No.3)Ltd. 5. IndiaLNGTransportCo.(No.4)PvtLtd. 6. SAILSCIShippingPvt.Ltd.(d) Key Management Personnel Executive Director 1. CaptAnoopKumarSharma(ceasedtobeontheBoardofSCIw.e.f11.09.2019) 2. Smt.H.K.Joshi{CMDw.e.f.12.09.2019andDirector(Finance)} 3. ShriS.V.Kher(ceasedtobeontheboardofSCIw.e.f.30.09.2019) 4. Shri.RajeshSood 5. Smt. Sangeeta Sharma 6. ShriSurinderPalSinghJaggi 7. ShriAtulUbale[joinedSCIBoardw.e.f05.12.2019] 8. ShriDipankarHaldar Chief Financial Officer 1. ShriLCSerrao(w.e.f05.02.2020) Non Executive Director 1. ShriShambhuSingh(ceasedtobeontheBoardofSCIw.e.f28.01.2020) 2. ShriSanjayKumar(joinedSCIBoardw.e.f29.01.2020) 3. ShriSatinderPalSingh 4. ShriArunBalakrishnan(reapppointedontheBoardofSCIw.e.f21.03.2019andcompletedhistenureon20.03.2020)




5. ShriGautamSinha 6. ShriP.Kanagasabapathi 7. ShriRajKishoreTewari 8. ShriMavjiBhikhabhaiSorathia 9. ShriVijayTulshiramjiJadhao 10. ShriPramodKumarPanda(joinedSCIBoardw.e.f.18.10.2019)Key management personnel compensation

Name

Short-term employee benefits

Post-employment benefits

Long-term employee benefits

Employee share-based payment

31 March 2020

31 March 2019

31 March 2020

31 March 2019

31 March 2020

31 March 2019

31 March 2020

31 March 2019

1.ShriA.K.Sharma 26 36 11 4 - - - -

2.SmtH.K.Joshi 48 37 9 8 - - - -

3.ShriS.V.Kher 43 40 4 7 - - - -

4.ShriRajeshSood 44 31 7 6 - - - -

5. Smt. Sangeeta Sharma 47 32 7 7 - - - -

6.ShriSurinderPalSinghJaggi 37 31 7 6 - - - -

7.ShriAtulUbale 13 - 3 - - - - -

8.ShriDipankarHaldar 39 39 8 7 - - - -

9.ShriL.C.Serrao 6 - 1 - - - - -

Total 303 246 57 45 - - - -

Note:-AstheliabilitiesforgratuityandleaveencashmentareprovidedonactuarialbasisforthecompanyasawholetheamountspertainingtoKeymanagementpersonnelcompensationarenotincludedintheabovetable.Other transactions with related partiesThe following transactions occurred with related parties:

Nature of Transactions 31 March 2020 31 March 2019SittingFees 14.8 21.2

(e) Transactions with JV's and Outstanding Balances are as follows:

Nature of Transactions 31 March 2020 31 March 20191)InterestIncomeduringtheyear 1,365 1,3522)ExpensesReimbursedduringtheyear 50 333)Management&Accountingfeesearnedduringtheyear 1,917 1,8394)Guaranteefeesreceivedduringtheyear 41 415) Investment made during the year - - 6)Loansrealisedduringtheyear 991 2,8117) Interest amount compounded in to principal during the year 1,094 33

Outstanding Balances 31 March 2020 31 March 20191)Investments 7,408 7,4082)LoanBalances 24,122 22,0343)OtherReceivable 23 234)PayableonaccountofShip 22,346 20,504




Outstanding Balances 31 March 2020 31 March 20195)GuaranteesGivenforJV's 5,399 4,9546)Interestreceivable 342 3017)ExpensesrecoverablefromJV's 10 10

(f) Transactions with Subsidiary and Outstanding Balances are as follows:

Nature of Transactions 31 March 2020 31 March 2019Investment made during the year - - Expenses incurred on behalf during the year 0.22 0.19

Outstanding Balances 31 March 2020 31 March 2019Investment at the year end 5.00 5.00Receivable as at year end 9.97 9.75

(g) Transactions with Government related entities(1) Significant TransactionsGovernment related entities along with description of relationship wherein significant amount of transaction carried out:

Name of related party Relation Nature of transaction 31 March 2020 31 March 2019

IndianOilCorporationLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 45,585 32,692

HindustanPetroleumCorporationLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 84,703 66,098

BharatPetroleumCorporationLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 51,185 45,557

OilAndNaturalGasCorporationLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 20,247 12,938

MangaloreRefineryandPetrochemicalsLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 26,455 19,213

ChennaiPetroleumCorporationLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 14,086 12,340

SteelAuthorityOfIndiaLtd CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 19,257 17,528

IndianOilCorporationLimited CentralPSU PurchasesofBunker,Oiletc 27,168 21,922

HindustanPetroleumCorporationLimited CentralPSU PurchasesofBunker,Oiletc 5,919 9,141

CochinShipyard CentralPSU Repair/Drydockofvessel 10,953 10,447

TheOrientalInsuranceCo.Ltd CentralPSU Insurance etc. 9,580 3,778

OilAndNaturalGasCorporationLimited CentralPSU Recovery of Reimbursable expenses 27,916 33,030

Andaman&NicobarAdministration A&NAdmin Recovery of Reimbursable expenses 16,962 15,641

Ministry of Earth SciencesMinistry of Earth Sciences

Recovery of Reimbursable expenses 6,106 5,655

GeologicalSurveyOfIndiaMinistry of

MinesRecovery of Reimbursable expenses 5,615 6,797

Government related entities along with description of relationship wherein significant amount of balance receivable/payable from/to related parties are as follows:


HindustanPetroleumCoporationLtd. CentralPSU TradeReceivable/(Advancefromcustomer) 9,092 4,852

OilAndNaturalGasCorporationLtd. CentralPSU TradeReceivable/(Advancefromcustomer) 8,379 13,191

BharatPetroleumCorporationLtd. CentralPSU TradeReceivable/(Advancefromcustomer) 6,125 5,364

IndianOilCorporationLtd. CentralPSU TradeReceivable/(Advancefromcustomer) 5,458 3,664






MinesTradeReceivable/(Advancefromcustomer) 1,534 5,648

DepartmentofFertilizersMinistry of Fertilizers

TradeReceivable/(Advancefromcustomer) (162) 492

NuclearPowerCorporation CentralPSU TradeReceivable/(Advancefromcustomer) 131 (4)

Ministry of External affairsMinistry

of External affairs

TradeReceivable/(Advancefromcustomer) - (4)

AndamanLakshdeepHarbourworksMinistry

of Surface transport

TradeReceivable/(Advancefromcustomer) 2 (4)

CochinShipyardLimited CentralPSU TradePayable/(Advancetovendor) 9,974 11,551

IndianOilCorporationLimited CentralPSU TradePayable/(Advancetovendor) 3,514 859

CochinPortTrustTrust under MPTAct

TradePayable/(Advancetovendor) (288) 6,871

VizagPortTrustTrust under MPTAct


KolkataPortTrustTrust under MPTAct


ParadeepPortTrustTrust under MPTAct


Balmer&Lawrie&Co.Ltd CentralPSU TradePayable/(Advancetovendor) 2 (7)

TheChairmanCHPTTrust under MPTAct

TradePayable/(Advancetovendor) (105) (1)

TheOrientalInsuranceCoLtd. CentralPSU TradePayable/(Advancetovendor) 28 (1)

(2) Other than Significant TransactionsOther than significant transactions carried out are as follows:

Particulars 31 March 2020 31 March 2019Revenue 34,665 40,061Purchases/services 34,481 34,232Recovery of Reimbursable expenses 4,809 5,480

Other than significant amount of balance receivable/payable from/to related parties are as follows:

Particulars 31 March 2020 31 March 2019TradeReceivable/(Advancefromcustomers) 17,362 23,097TradePayable/(Advancetovendors) 3,569 17,553

Transactions with other government-related entitiesApartfromthetransactionsdisclosedin(g)above,theCompanyalsoconductsbusinesswithothergovernmentrelatedentities.TheCompanyhasbankdeposits,borrowingsandothergeneralbankingrelationswithPSUbanks.Otherthanthesubstantialamountofbankbalances,bankborrowingsandthefacilitieswiththesebanks,transactionswithothergovernmentrelatedentitiesareindividuallyinsignificant.




(h) TrustTransactions with Post Retirement Plans managed through separate trust wherein SCI having control :

Name of the related party Nature of transaction 31 March 2020 31 March 20191. ShippingCorporationofIndiaEmployeesGratuityFund - - - 2. PostRetirementMedicalSchemefortheShoreemployeesofTheShippingCorporationofIndiaLimited

- - -

3. ProvidentFundfortheemployeesofTheShippingCorporationofIndiaLimited

Employer'sContribution 1,249 1,215

4. SCIEmployeeSuperannuationTrust Employer'sContribution 1,090 1,0625. ProvidentFundforTheCrewNonCDCholdersofTheShippingCorporationofIndiaLimited

- - -

Note 31: Employee Benefit Obligations(A) Description of type of employee benefitsa) The Company offers to its employee’s defined benefits plans in the form of Gratuity, leave encashment and post retirement Medical

Scheme

i. Gratuity

a) Representsbenefitstoemployeeonthebasisofnumberofyearsofservicerenderedbyemployee.Theemployee is entitled to receive the same on retirement or resignation.

b) SCIhasformedatrustforgratuitywhichisfundedbytheCompanyonaregularbasis.Theassetsofthe trust have been considered as plan assets.

ii. LeaveEncashmentRepresents unavailed leave to the credit of the employee and carried forward in accordance with terms of agreement.

iii.PostRetirementMedicalBenefitScheme

Representsbenefitsgiven toemployeessubsequent to retirementon thehappeningofanyunforeseenevent resulting in medical costs to the employee

b) The Company offers to its employee’s defined benefits plans in the form of Gratuity, leave encashment and post retirement Medical Scheme

The details of the plan are as follows:-

i. ProvidentFundItisacontributionmadeonmonthlybasis@12%ofmonthlyBasicandDAtothePFTrustwhocredits annual interest on PF balances. The corpus accumulated is paid on retirement of theemployee.

ii.PostRetirementMedicalScheme(Neww.e.f.01.01.2007)

It isacontribution@4%ofmonthlyBasicandDA towardsprovisionofemployees’medicalexpenses incurred after retirement.

iii. PensioncontributionItisacontribution@12%ofmonthlyBasicandDAtowardsprovisionofannuityafterretirementof employees.

(B) Gratuity Balance sheet amount (Gratuity Plan)

Particulars Present value of obligation

Fair value of plan assets

Net amount

01-Apr-18 12,228 15,471 (3,243)

Currentservicecost 706 - 706

Interestexpense/(income) 910 1,138 (228)

Total amount recognised in profit and loss 1,616 1,138 479






Net amount

Remeasurements

Returnonplanassets,excludingamountincludedininterestexpense/(income) - 304 (304)

(Gain)/lossfromchangeindemographicassumptions (9) - (9)

(Gain)/lossfromchangeinfinancialassumptions 289 - 289

Experience(gains)/losses (477) - (477)

(i) Amount recognised in other comprehensive income (197) 304 (501)

Employer contributions -

Benefitpayments (1,202) (1,202) -

UnrecognisedAssetduetoLimitinPara64(b) - - -

(ii) 31 March 2019 12,446 15,711 (3,265)

(iii)UnrecognisedAssetatthebeginningoftheperiod - - -

(iv)Assetrecognisedduringtheyear(AssetCeling) - - -

(v)UnrecognisedAssetduetoLimitinPara64(b)-ChangeinAssetCeiling[(iii)-(iv)] - - -

Total amount recognised in other comprehensive income [(i) & (v)] (197) 304 (501)

Closing Balance Sheet (Asset) / Liability as on 31 March 2019 [(ii) + (iii)+ (v)] (3,265)



Net amount

31-Mar-19 12,446 15,711 (3,265)


Pastservicecost - - -



Remeasurements

Returnonplanassets,excludingamountincludedininterestexpense/(income) - (243) 243

(Gain)/lossfromchangeindemographicassumptions - - -


Experience(gains)/losses (2,640) - (2,640)

(i) Amount recognised in other comprehensive income (2,087) (243) (1,844)

Employer contributions


UnrecognisedAssetduetoLimitinPara64(b)

(ii) 31 March 2020 10,388 14,961 (4,573)(iii)UnrecognisedAssetatthebeginningoftheperiod - - -(iv)Assetrecognisedduringtheyear(AssetCeling) - - -


Total amount recognised in other comprehensive income [(i) & (v)] (2,087) (243) (1,844)






Net amount


For gratuity, the benefits are paid by the trust and are not debited to the profit & loss of the Company. The net liability disclosed above relates to funded and unfunded plans are as follows:

Particulars 31-Mar-20 31-Mar-19Presentvalueoffundedobligations 10,388 12,446Fairvalueofplanassets 14,961 15,711Deficit of funded plan (4,573) (3,265)Unfundedplans - - UnrecognisedAssetduetoLimitinPara64(b)Deficit of gratuity plan (4,573) (3,265)

Significant estimates: Actuarial assumptionsThe significant actuarial assumptions were as follows:

Principal Assumptions at the balance sheet date:

Financial Assumptions 31-Mar-20 31-Mar-19

DiscountRate 6.69% 7.67%

Salary Escalation Rate-Shore Staff 7.80%7.50%

SalaryEscalationRate-FloatingStaff 9.00%

Expected Return on Assets 6.69% 7.67%

Demographic Assumptions 31-Mar-20 31-Mar-19

Mortality Table IndianAssuredLivesMortality

(2012-14)Ult.IndianAssuredLivesMortality

(2012-14)Ult.

WithdrawalRate IALM(2012-14)Ultimate0.50% IALM(2012-14)Ultimate0.50%

Retirement Age 60years 60years

Timing Related Assumptions

Time of Retirement Immediately on achieving normal retirement

SalaryIncreasefrequency Once a year

Sensitivity analysisThe sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

31-Mar-20 31-Mar-19

Defined Benefit Obligation (Base) 10388 10749

Sensitivity Analysis 31-Mar-20 31-Mar-19

Table 14 : Sensitivity Analysis Decrease Increase Decrease Increase

Discount RateImpactofincrease/decreasein50bpsonDBO

320 372 633 695

Salary Growth RateImpactofincrease/decreasein50bpsonDBO

313 355 500 550




Change in the Unrecognised Asset due to the Asset Ceiling During the Period 31-Mar-19 to31-Mar-20

31-Mar-18 to 31-Mar-19

UnrecognisedAsset,BeginningofPeriod - -

Asset recognised during the year - -

UnrecognisedAsset,EndofPeriod - -

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikelytooccur,andchangesinsomeoftheassumptionsmaybecorrelated.Whencalculatingthesensitivityofthedefinedbenefitobligationtosignificantactuarialassumptionsthesamemethod(presentvalueofthedefinedbenefitobligationcalculatedwiththeprojectedunitcreditmethodattheendofthereportingperiod)hasbeenappliedaswhencalculatingthedefinedbenefitliabilityrecognisedinthebalancesheet.Major category of plan assets are as follows:-

Particulars31-Mar-20 31-Mar-19

Quoted Unquoted Total in % Quoted Unquoted Total in %Government of India Securities 9,895 - 9,895 66% 6,984 - 6,984 44%Debt instrumentsInvestmentinBonds 400 - 400 3% 1,893 - 1,893 12%

Other Assets including accrued interest 707 226 933 6% 670 330 1,000 6%Investment in Deposits including Bank Balance - 3,733 3,733 25% - 5,834 5,834 37%Total 11,002 3,959 14,961 100% 9,547 6,164 15,711 100%

NoneofthefinancialassetsofSCIhavebeenconsideredinthefairvalueofplanassets.The expected rate of return on plan assets has been estimated on the basis of actual returns of the trust in the past years. The securities of trust have an effect on the fair value of plan assets as the value of the securities vary with the changes in the market interest rates.Actual Return on plan assets `894lakh(Prev.period`1441lakhs)Throughitsdefinedbenefitplans,thegroupisexposedtoanumberofrisks,themostsignificantofwhicharedetailedbelow:Asset volatility:The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will createadeficit.Mostoftheplanassetinvestmentsisinfixedincomesecuritieswithhighgradesandingovernmentsecurities.TheCompanyintends to maintain the above investment mix in the continuing years.Changes in bond yields:A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans’ bond holdings. Life expectancy:Thegratuityplanobligationsaretoprovidebenefitsforthelifeofthemember,soincreasesinlifeexpectancywillresultinanincreaseintheplans’liabilities.Thisisparticularlysignificantwhereinflationaryincreasesresultinhighersensitivitytochangesinlifeexpectancy.ContributionexpectedtobepaidinthenextyearisNIL.Theweightedaveragedurationofthedefinedbenefitobligationis11.24years(2019–12.01years).(C) Leave Encashment (Unfunded)Balance sheet amount (Leave Encashment)

Particulars Present value of obligation01-Apr-18 5,281 Currentservicecost 407Interestexpense/(income) 414Actuarial(Gain)/lossfromchangeinfinancialassumptions 138Actuarial(Gain)/lossfromchangeindemographicassumptions (4)Actuarial-Experience(gains)/losses 448Total amount recognised in profit and loss 1,403 Benefitpayments* (841)31-Mar-19 5,843




*Forleaveencashment,thebenefitspaidaredebitedtothestatementofProfitandLoss.

Particulars Present value of obligation31-Mar-19 5,843 Currentservicecost 450Interestexpense/(income) 452Actuarial(Gain)/lossfromchangeinfinancialassumptions 507Actuarial(Gain)/lossfromchangeindemographicassumptions - Actuarial-Experience(gains)/losses 593Total amount recognised in profit and loss 2,002 Employer contributionsBenefitpayments* (2,423)31-Mar-20 5,422 *Forleaveencashment,thebenefitspaidaredebitedtothestatementofProfitandLoss.The net liability disclosed above relates to unfunded plan are as follows:

Particulars 31-Mar-20 31-Mar-19

Presentvalueofunfundedobligations 5,422 5,843

Deficit of leave encashment plan 5,422 5,843

Significant estimates: Actuarial assumptions Thesignificantactuarialassumptionswereasfollows:


Financial Assumptions 31-Mar-20 31-Mar-19DiscountRate 6.69% 7.67%Salary Escalation Rate-Shore Staff 7.80%

7.50%SalaryEscalationRate-FloatingStaff 9.00%Demographic Assumptions 31-Mar-20 31-Mar-19

Mortality Table IndianAssuredLivesMortality(2012-14)Ult.

IndianAssuredLivesMortality(2012-14)Ult.

WithdrawalRateIALM(2012-14)Ultimate0.50%

IALM(2012-14)Ultimate0.50%

Retirement Age 60years 60yearsTiming Related AssumptionsTime of Retirement Immediately on achieving normal retirementSalaryIncreasefrequency Once a year

Sensitivity analysisThesensitivityofthedefinedbenefitobligationtochangesintheweightedprincipalassumptionsis:

31-Mar-20 31-Mar-19Defined Benefit Obligation (Base) 5,422 5,843

Sensitivity Analysis31-Mar-20 31-Mar-19

Decrease Increase Decrease IncreaseDiscount Rate Impactofincrease/decreasein50bpsonDBO

211 178 344 309

Salary Growth Rate Impactofincrease/decreasein50bpsonDBO

231 220 249 238




Theweightedaveragedurationofthedefinedbenefitobligationis11.24years(2019-12.01years). The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikelytooccur,andchangesinsomeoftheassumptionsmaybecorrelated.Whencalculatingthesensitivityofthedefinedbenefitobligationtosignificantactuarialassumptionsthesamemethod(presentvalueofthedefinedbenefitobligationcalculatedwiththeprojectedunitcreditmethodattheendofthereportingperiod)hasbeenappliedaswhencalculatingthedefinedbenefitliabilityrecognisedinthebalancesheet.(D) Post Retirement Medical Benefit SchemeBalance sheet amount (Post Retirement Medical Benefit Scheme)



Net amount

01-Apr-18 2,442 1,091 1,351Pastservicecost (279) (279)Interestexpense/(income) 181 77 104Total amount recognised in profit and loss (98) 77 (175)RemeasurementsReturnonplanassets,excludingamountincludedininterestexpense/(income) - - - (Gain)/lossfromchangeindemographicassumptions - - -(Gain)/lossfromchangeinfinancialassumptions 12 12Experience(gains)/losses (75) 1 (76)Total amount recognised in other comprehensive income (63) 1 (64)Employer contributions - - Benefitpayments (198) (198) - 31-Mar-19 2,083 971 1,112



Net amount

31-Mar-19 2,083 971 1,112Pastservicecost (17) (17)Interestexpense/(income) 151 74 77 Total amount recognised in profit and loss 134 74 60RemeasurementsReturnonplanassets,excludingamountincludedininterestexpense/(income) - - -(Gain)/lossfromchangeindemographicassumptions - - -(Gain)/lossfromchangeinfinancialassumptions 202 - 202Experience(gains)/losses 75 (105) 180Total amount recognised in other comprehensive income 277 (105) 382Employer contributions - - - Benefitpayments (230) (230) - 31-Mar-20 2,264 710 1,554

The net liability disclosed above relates to funded and unfunded plans are as follows:

Particulars 31-Mar-20 31-Mar-19Presentvalueoffundedobligations 2,264 2,083Fairvalueofplanassets 710 971Deficit of funded plan 1,554 1,112 Deficit of Post Retirement Medical Benefit Scheme plan 1,554 1,112

Significant estimates: Actuarial assumptionsThesignificantactuarialassumptionswereasfollows:




Financial Assumptions 31-Mar-20 31-Mar-19DiscountRate 6.69% 7.67%Expected Return on Assets 6.69% 7.67%Demographic Assumptions 31-Mar-20 31-Mar-19

Mortality Table LIC(1996-98)Ult

(Annuitant)LIC(1996-98)Ult

(Annuitant)Timing Related Assumptions

Time of RetirementImmediately on achieving normal

retirement



Defined Benefit Obligation (Base) 2,264 2,083

Table 12 : Sensitivity Analysis31-Mar-20 31-Mar-19

Decrease Increase Decrease Increase


86 (76) 44 39


31-Mar-20

Quoted Unquoted Total in %

InvestmentinDepositsincludingBankBalance - 670 670 94%

Other Assets including accrued interest - 40 40 6%

Total - 710 710 100%

Major category of plan assets are as follows:-

31-Mar-19




Total - 971 971 100%

NoneofthefinancialassetsofSCIhavebeenconsideredinthefairvalueofplanassets.The expected rate of return on plan assets has been estimated on the basis of actual returns of the trust in the past years. The securities of trust have an effect on the fair value of plan assets as the value of the securities vary with the changes in the market interest rates.Defined benefit liability and employer contributions:ContributionexpectedtobepaidinthenextyearisNIL.Theweightedaveragedurationofthedefinedbenefitobligationis10.76years(2019–10.21years).Theexpectedfuturecashflowsasat31.03.2020areasfollows:Projectedbenefitspayableinfutureyearsfromthedateofreporting




Expected Contribution Gratuity Leave Encashment PRMS

1st following year 1,426 272 247

2nd following year 749 322 273

3rd following year 777 454 308

4th following year 950 666 355


Years6to10 3,451 2,608 1,432

Theexpectedfuturecashflowsasat31.03.2019areasfollows:Projectedbenefitspayableinfutureyearsfromthedateofreporting






5th following year 1,054 672 373

Years6to10 3,502 2,248 1,305

Note 32: Segment information(a) Business Segments TheCompanyismanagedbytheBoardwhichisthechiefdecisionmaker.TheBoardhasdeterminedtheoperatingsegmentsbasedon

thepatternofvesselsdeployedbytheCompany,forthepurposesofallocatingresourcesandassessingperformance. (I) Liner Liner segment includes break-bulk, container transport, passenger vessels & research vessels managed on behalf of other

organisations. (II) Bulk BulkCarriersincludedrybulkcarriers. (III) Tanker Tankers segment includes both crude and product carriers, gas carriers. (IV) T&OS

Technical&Offshoreservicessegmentincludescompanyownedoffshorevessels,offshorevesselsmanagedonbehalfofotherorganisations and income from technical consultancy.

(V) Others Others segment include income earned from Maritime Training Institute. (VI) Unallocated Unallocableitemsandinterestincome/expensesaredisclosedseparately.

Expense and Revenue items are allocated vessel wise wherever possible. Expenses and revenue items that cannot be allocated vesselwiseareallocatedonthebasisofageofthevesseli.e.(Currentyear-Builtyear)+1.

(b) Geographical Segments Presently,theCompany'soperationsarepredominantlyconfinedinIndia.(c) Adjusted Earnings before Interest & Tax (EBIT) AdjustedEBITexcludesdiscontinuedoperationsand theeffectsofsignificant itemsof incomeandexpenditurewhichmayhavean

impacton thequalityof earningssuchas restructuringcosts, impairmentswhen the impairment is the result of an isolated,non-recurringevent.Italsoexcludestheeffectsofgainsorlossesonfinancialinstruments.




Interest income is not allocated to segments, as this type of activity is driven by the central treasury function, which manages the cash positionoftheCompany.

EBIT 31 March 2020 31 March 2019Liner (13,131) (8,960)Bulk (1,276) 3,277Tanker 73,667 19,301T&OS 7,412 (906)Others 188 (171)Unallocated (3,813) 6,834Total adjusted EBIT 63,047 19,375 AdjustedEBITreconcilestoprofitbeforeincometaxasfollows:

31 March 2020 31 March 2019

TotaladjustedEBIT 63,047 19,375

Financecosts:

Liner 87 125

Bulk 3,718 4,788

Tanker 5,894 7,935

T&OS 1,967 2,546

Others - -

Unallocated 24,747 20,511

TotalFinancecosts 36,413 35,905

Interest income from investments 8,117 9,045

Profit before income tax from continuing operations 34,751 (7,485)

DepreciationincludedinadjustedEBIT

31 March 2020 31 March 2019

Liner 2,115 1,889

Bulk 11,256 11,234

Tanker 46,679 44,619

T&OS 7,017 8,045

Others 61 59

Unallocated (1) -

Total Depreciation included in adjusted EBIT 67,127 65,846

(d) Segment revenueThe segment revenue is measured in the same way as in the statement of profit or loss.




Segment

31 March 2020 31 March 2019Total

segment revenue

Inter segment revenue

Revenue from external

customers

Total segment revenue


Revenue from external

customersLiner 64,488 - 64,488 59,362 - 59,362Bulk 57,034 - 57,034 58,603 - 58,603Tanker 295,819 - 295,819 246,195 - 246,195T&OS 28,706 - 28,706 22,832 - 22,832Others 1,886 - 1,886 1,693 - 1,693Total Segment Revenue 447,933 - 447,933 388,685 - 388,685Unallocated 10,789 - 10,789 12,778 - 12,778 Total segment revenue as per profit and loss 458,722 - 458,722 401,463 - 401,463

Information about major customersRevenuetospecificcustomersexceeding10%oftotalrevenuefortheyearended31stMarch2020and31stMarch2019wereasfollows:

Revenue from external customers31 March 2020 31 March 2019

Tanker segment

Liner Segment Total Tanker

segmentLiner

Segment Total

BharatPetroleumCorporationLtd. 51,185 - 51,185 45,557 - 45,557HindustanPetroleumCorporationLtd. 84,703 - 84,703 66,098 - 66,098IndianOilCorporationLtd 44,699 885 45,584 31,902 790 32,692TheCompanyisdomiciledinIndia.Theamountof itsrevenuefromexternalcustomers(exceeding4%)brokendownbylocationofthecustomers is shown in the table below:

Revenue from external customers 31 March 2020 31 March 2019India 373,996 320,733Singapore 26,757 16,241OtherCountries 47,180 51,711Total 447,933 388,685

(e) Segment assets

Segment31 March 2020 31 March 2019

Segment assets

Addition to non-current assets

Segment assets


Liner 68,246 - 71,353 - Bulk 172,212 - 176,108 - Tanker 599,972 - 629,368 - T&OS 121,393 - 128,530 - Others 1,227 - 707 - Total segment assets 963,050 - 1,006,066 - Unallocated 410,262 - 409,401 - Total assets as per the balance sheet 1,373,312 - 1,415,467 -

(f) Segment liabilities

31 March 2020 31 March 2019Liner 72,883 107,803Bulk 73,172 110,458Tanker 113,145 217,560




31 March 2020 31 March 2019T&OS 43,110 72,281Others 474 485Total segment liabilities 302,784 508,587 Unallocated 340,710 208,759Total liabilities as per the balance sheet 643,494 717,346

Note 33: Revenue from Contract with customersThe revenue from contracts with customers to the amounts disclosed as total revenue are as under:

Particulars 31 March 2020 31 March 2019RevenuefromContractwithCustomers 375,853 335,634Revenue from Other SourcesCharterhire(lease) 82,445 65,309Other income 8,541 9,565

Total Revenue 466,839 410,508 ThedisaggregationofRevenuefromContractwithCustomersisasunder:(A) Revenue from Contract with Customers - Segmentwise

Particulars 31 March 2020 31 March 2019Liner 64,486 59,362Bulk 38,552 35,232Tanker 249,498 220,449T&OS 11,065 6,640Others 1,886 1,693Unalloacated 10,366 12,258Total Revenue 375,853 335,634

(B) Revenue from Contract with Customers – Geographical Location

Particulars31 March 2020

India Singapore Others Total Liner 57,888 355 6,243 64,486Bulk 36,595 126 1,831 38,552Tanker 218,650 8,047 22,801 249,498T&OS 11,065 - - 11,065Others 1,886 - - 1,886Unalloacated 355 22 9,989 10,366Total Revenue 326,439 8,550 40,864 375,853


India Singapore Others Total Liner 49,845 331 9,186 59,362Bulk 35,264 (62) 30 35,232Tanker 187,943 4,791 27,715 220,449T&OS 6,636 1 3 6,640Others 1,329 - 364 1,693Unalloacated (251) - 12,509 12,258Total Revenue 280,766 5,061 49,807 335,634




C) On the basis of Timing of Revenue Recognition:


At Point in time At Point over time Total Liner 150 64,336 64,486Bulk 2,219 36,333 38,552Tanker 19,507 229,991 249,498T&OS 4,648 6,417 11,065Others 45 1,841 1,886Unalloacated 11,084 (718) 10,366Total Revenue 37,653 338,200 375,853


At Point in time At Point over time Total Liner 820 58,542 59,362Bulk 2,894 32,338 35,232Tanker 15,035 205,414 220,449T&OS 270 6,370 6,640Others 33 1,660 1,693Unalloacated 12,928 (670) 12,258Total Revenue 31,980 303,654 335,634

Contract Asset

Particulars 31 March 2020 31 March 2019

OpeningBalanceofContractAsset 33,968 26,597

OpeningBalancereclassifiedasTradeReceivableincurrentperiod 33,052 25,545

CurrentyearContractAsset-CarriedForward 46,485 32,267

Closing Balance of Contract Asset 46,752 33,968

Contract Liability


OpeningBalanceofContractLiability 688 1,894

RevenuerecognisedfromopeningbalanceofContractLiability 688 1,894

CurrentyearContractLiability-CarriedForward 1,238 688

Closing Balance of Contract Liability 1,238 688

Thenatureofservicesanditsdisclosureoftimingofsatisfactionofperformanceobligationismentionedinpara1.19ofNoteNo.1.ContractAssetsinthebalancesheetconstitutesunbilledamountstocustomersrepresentingtheCompany’srighttoconsiderationfortheservicestransferredtodate.AnyamountpreviouslyrecognisedasContractAssetsisreclassifiedtotradereceivablesatthetimeitisinvoicedto the customer.ContractLiabilitiesinthebalancesheetconstitutesadvancepaymentsandbillingsinexcessofrevenuerecognised.TheCompanyexpectstorecognisesuchrevenueinthesubsequentfinancialyears.Therewerenosignificantchangesincontractassetsandcontractliabilitiesduringthereportingperiodexceptamountasmentionedinthetable and explanation given above.Tradereceivablesasdisclosedinnoteno7(e)includescontractbalances.ImpairmentlossesasdisclosedinNote38includesreceivables




arising from contracts with customers.UnderthepaymenttermsgenerallyapplicabletotheCompany’srevenuegeneratingactivities,prepaymentsarereceivedonlytoalimitedextent. Typically, payment is due upon or after completion of the services.TheCompanygeneratesrevenuefromshippingactivities.Revenuefromavoyagecharterisrecognisedovertime,whichisdeterminedonapercentageofvoyagecompletionmethod.TheCompanyhasrecognisedrevenueoveraperiodoftimebasisfollowingoutputmethod.Since,theCompanycantrackstheprogresstowardcompletionofthecontractbymeasuringdaystodaterelativetototalestimateddaysneededtosatisfytheperformanceobligation,thepercentageofvoyagecompletionmethod/straight-linebasisovertheperiodofthecharteri.e.outputmethod provide a faithful depiction of transfer of goods or services.Note 34: LEASETheCompanyaslesseehasagreements/contractsrelatingtocharterinofvesselontimebasis,land,building,Cars,Photocopiermachineetc.TheCompanyaslessorhasenteredintoagreements/contractsofoutcharterofvesselontime,etc.Theright-of-useandleaseliabilityaredisclosedinthefinancialstatementsatnoteno6&14(b)respectively.ThePaymentsassociatedwithshort-termleasesandleasesoflow-valueassetsarerecognisedonastraight-linebasisasanexpenseinprofitorloss.The following table shows the effects of Leases in the Statement of the Profit and Loss in financial year 2019-20:

Amounts recognised in profit and loss 31 March 2020 Depreciationcostonright-of-useassets 293Interestexpenses(includedinfinancecosts) 249 Expenses relating to service elements of leases - Expenses relating to short-term leases 7,489 Expenses relating to variable lease payments - Expenses relating to leases of low-value assets - Total recognised in operating costs 8,031 Totalcashoutflowimpactforleasesfortheyear2019-20was`340lakhs,ofwhich`224lakhsrelatestointerestexpense.OPERATING LEASE COMMITMENTS(1) As a Lessee - Payments Atthebalancesheetdate,theCompanyhasthefollowingcontractualcommittedfutureminimumleasepayablesundernon-cancellable

operatingleasesfromtime-chartercontracts,land,building,Cars,Photocopiermachineetcintheaggregateandeachofthefollowingperiods:

Particulars 31 March 2020* 31 March 2019

Notlaterthan1year 3,125 2,183

Laterthan1yearandnotlaterthan5years 1,369 150

Laterthan5Years 2,392 30

*Theleasepayablesincludebothinterestandprincipalcashflows.Theleasehasvaryingtermsandrenewalrights.TheCompany'soperatingleaseforvesselshavetermsrangingfromlessthan1yearto5years.Vesselsontimecharterhireareconsideredasoperatinglease.(2) As a Lessor - Receipts Atthebalancesheetdate,theCompanyhasthefollowingcontractualcommittedfutureminimumleasereceivableundernon-cancellable

operating leases from time - charter contracts in the aggregate and each of the following periods:

Particulars 31 March 2020 31 March 2019Notlaterthan1year 38,469 19,777Laterthan1yearandnotlaterthan5years 23,243 9,485Laterthan5Years - -




TheCompany'soperatingleaseforvesselshavetermsrangingfromlessthan1yearto5years.Certainoftheleaseshavevaryingtermsand renewal rights.Vesselsontimecharterhireareconsideredasoperatinglease.Note 35: Assets pledged as security

Particulars Notes 31 March 2020 31 March 2019CurrentFinancial AssetsOther bank balances 7(g) 8,553 8,434Total current assets pledged as security 8,553 8,434 Non-currentFinancial AssetsNon-currentinvestments 7(a) 7,359 7,359Non Finacial AssetsProperty,PlantandEquipment 3 656,439 682,099Total non-current assets pledged as security 663,798 689,458 Total assets pledged as security 672,351 697,892

Note 36: Offsetting Financial Assets and Financial LiabilitiesThefollowingtablepresentstherecognisedfinancialinstrumentsthatareoffsetandotheragreementsbutnotoffset,asatMarch31,2020andMarch31,2019.Thecolumn‘netamount’showstheimpactontheCompany’sBalanceSheetifallset-offrightswereexercised.

Particulars

Effects of offsetting on the balance sheet Related amounts not offset

Gross amount

Gross amounts set off in the

balance sheet

Net amount presented in the balance sheet

Amounts subjects to master netting

arrangements

Financial instruments collateral

Net amount

March 31, 2020Financial assetsi. Investments 7,726 - 7,726 - - 7,726ii. Trade receivables 60,623 - 60,623 - - 60,623iii.Cashandcashequivalents 24,478 - 24,478 - - 24,478iv.Bankbalancesotherthan(iii)above 69,299 - 69,299 - 8,553 60,746v.Loans 26,821 - 26,821 - - 26,821vi.Otherfinancialassets 56,329 - 56,329 - - 56,329Total 245,276 - 245,276 - 8,553 236,723 Financial liabilitiesi.Borrowings 366,380 - 366,380 - - 366,380ii.LeaseLiabilities 2,604 - 2,604 - - 2,604iii. Trade payables

Micro, Small and Medium Enterprises 629 - 629 - - 629Others 94,931 - 94,931 - - 94,931

iv.Otherfinancialliabilities 129,421 - 129,421 - - 129,421Total 593,965 - 593,965 - - 593,965 March 31, 2019Financial assetsi. Investments 7,714 - 7,714 - - 7,714ii. Trade receivables 59,892 - 59,892 - - 59,892iii.Cashandcashequivalents 9,538 - 9,538 - - 9,538




Particulars


Gross amount

Gross amounts set off in the

balance sheet

Net amount presented in the balance sheet

Amounts subjects to master netting

arrangements


Net amount

iv.Bankbalancesotherthan(iii)above 90,278 - 90,278 - 8,434 81,844v.Loans 24,417 - 24,417 - - 24,417vi.Otherfinancialassets 47,683 - 47,683 - - 47,683Total 239,522 - 239,522 - 8,434 231,088 Financial liabilitiesi.Borrowings 411,414 - 411,414 - - 411,414ii.LeaseLiabilities - - - - - - iii. Trade payables


iv.Otherfinancialliabilities 131,660 - 131,660 - - 131,660Total 670,344 - 670,344 - - 670,344

Note 37: Fair value measurementsFinancial instruments by category

31 March 2020 31 March 2019FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised cost

Financial assets

Investments-Equityinstruments 362 - - 350 - - - Mutual funds - - - - - - Loans - - 26,821 - - 24,417Trade receivables - - 60,623 - - 59,892Cashandcashequivalents - - 24,478 - - 9,538Other bank balances - - 69,299 - - 90,278Bankdepositswithmorethan12monthsmaturity - - - - - - Otherfinancialassets - - 56,329 - - 47,683Total financial assets 362 - 237,550 350 - 231,808 Financial liabilitiesBorrowings - - 366,380 - - 411,414LeaseLiabilities - - 2,604 - - - Trade payables - - 95,560 - - 127,270Currentmaturitiesoflongtermdebt - - 107,739 - - 116,331Otherfinancialliabilities - - 21,682 - - 15,329Total financial liabilities - - 593,965 - - 670,344

(i) Fair value hierarchyThissectionexplainsthejudgementsandestimatesmadeindeterminingthefairvaluesofthefinancialinstrumentsthatare(a)recognisedandmeasuredatfairvalueand(b)measuredatamortisedcostandforwhichfairvaluesaredisclosedinthefinancialstatements.Toprovideanindicationaboutthereliabilityoftheinputsusedindeterminingfairvalue,theCompanyhasclassifieditsfinancialinstrumentsintothethreelevelsprescribedunderIndAS113.Anexplanationofeachlevelfollowsunderneaththetable.




Financial assets measured at fair value - recurring fair value measurementsAt 31 March 2020 Notes Level 1 Level 2 Level 3 Total

Financial assetsFinancialInvestmentsatFVTPLMutualfunds-Growthplan 7(d) - - - - Mutualfunds-Dividendplan 7(d) - - - - Unquotedequityinstruments-WoodlandSpecialityHospitalLtd 7(a) - - 362 362Total financial assets - - 362 362

Assets and liabilities which are measured at amortised cost for which fair values are disclosedAt 31 March 2020

Notes Level 1 Level 2 Level 3 Total

Financial assetsLoanstorelatedparties 7(b) - - 23,512 23,512Loanstoothers 7(b) - - 1,896 1,896Bankdeposits 7(c) - - - - Total financial assets - - 25,408 25,408 Financial LiabilitiesBorrowings 14(a) - 275,477 - 275,477Security deposits 14(c) - - 25 25Total financial liabilities - 275,477 25 275,502





Financial assetsLoanstorelatedparties 7(b) - - - - Loanstoothers 7(b) - - 1,562 1,562Bankdeposits 7(c) - - - - Total financial assets - - 1,562 1,562 Financial LiabilitiesBorrowings 14(a) - 368,997 - 368,997Security deposits 14(c) - - 41 41Total financial liabilities - 368,997 41 369,038 Thefairvalueoffinancialinstrumentsreferredabovehavebeenclassifiedintothreecategoriesdependingontheinputsusedinthevaluationtechnique.Thehierarchygivesthehighestprioritytoquotedpricesinactivemarketforidenticalassetsorliabilities(level1measurements)andlowestprioritytounobservableinputs(level3measurements).Thecategoriesusedareasfollows:




Level 1: Level1hierarchyincludesfinancialinstrumentsmeasuredusingquotedprices.Thisincludesmutualfundsthathaveaquotedprice.ThemutualfundsarevaluedusingtheclosingNAV.Level 2: The fair valueof financial instruments that arenot traded inanactivemarket isdeterminedusingvaluation techniqueswhichmaximisetheuseofobservablemarketdataandrelyaslittleaspossibleonentity-specificestimates.Ifallsignificantinputsrequiredtofairvalueaninstrumentareobservable,theinstrumentisincludedinlevel2.Level 3:Ifoneormoreofthesignificantinputsisnotbasedonobservablemarketdata,theinstrumentisincludedinlevel3.Thisisthecaseforunlistedequitysecuritieswhichareincludedinlevel.There were no transfers between any levels during the year.(ii) Valuation technique used to determine fair value Specificvaluationtechniquesusedtovaluefinancialinstrumentsinclude: • theuseofclosingNAVforinvestmentinmutualfunds • theuseofbookvaluesforinvestmentinunlistedequitysecurities • thefairvalueoftheremainingfinancialinstrumentsisdeterminedusingdiscountedcashflowanalysis. Alloftheresultingfairvalueestimatesareincludedinlevel1and2exceptforunlistedequitysecurities,wherethefairvalueshavebeen

determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.(iii) Fair value measurements using significant unobservable inputs (level 3) Thefollowingtablepresentsthechangesinlevel3itemsfortheperiodsended31March2020and31March2019:

Particulars Unlisted Equity SecuritiesAs at 1st April 2018 118 Gains(losses)recognisedinStatementofprofitorloss 232As at 31 March 2019 350 Gains(losses)recognisedinStatementofprofitorloss 12As at 31 March 2020 362

ParticularsFair Value as at Significant

unobservable inputs

Sensitivity

31 March 2020 31 March 2019 2020 2019

Valuation inputs and relationship to fair value- Investment inEquitySecuritiesheld forsale(non recurring)

7 7 Netbook values

Notapplicable

Valuationinputsandrelationshiptofairvalue-UnlistedEquitySecurities(recurring)*

362 350Netbook values

increase (decrease) in the book value would result in

increase (decrease) in fair value*Netbookvalueason31stMarch,2020iscalculatedbasedonlatestavailableFinancialStatements(i.e.31stMarch2019)(iv) Valuation processesThefinancedepartmentoftheCompanyincludesateamthatalongwithtreasuryfunctionperformsthevaluationsoffinancialassetsandliabilitiesrequiredforfinancialreportingpurposes,includinglevel3fairvalues.ThisteamreportsdirectlytotheDirector(finance).•Forunlistedequitysecurities,theirfairvaluesareestimatedbasedonthebookvaluesoftheinvesteecompanies.(v) Fair value of financial assets and liabilities measured at amortised cost


Carrying amount Fair value Carrying amount Fair valueFinancial assetsLoanstorelatedparties 23,512 23,512 - - Loanstoemployee 1,896 1,896 1,562 1,562Bankdeposits - - - -





Carrying amount Fair value Carrying amount Fair valueTotal financial assets 25,408 25,408 1,562 1,562 Financial LiabilitiesBorrowings 275,477 275,477 368,997 368,997Security deposits 25 25 41 41Total financial liabilities 275,502 275,502 369,038 369,038 Thecarryingamountsoftradereceivables,tradepayables,shorttermsecuritydeposits,bankdepositswithmorethan12monthsmaturity,cashandcashequivalentsincludingotherbankbalancesandothercurrentfinancialassetsandliabilitiesareconsideredtobethesameastheirfairvalues.Hencethecurrentfinancialassets&liabilitieshavenotbeenconsideredforFairvaluehierarchyabove.The fair values of non-current borrowings (with floating rate of interest) is not impacted due to interest rate changes andwill not besignificantlydifferentfromtheircarryingamountasthereisnosignificantchangeintheunderlyingcreditriskoftheCompany'sborrowings.Thefairvaluesofnon-currentborrowings(withfixedrateofinterest)arebasedondiscountedcashflowsusingacurrentborrowingrate.Theyareclassifiedaslevel2fairvaluesinthefairvaluehierarchyduetotheuseofobservableinputs.Forfinancialassetsandliabilitiesthataremeasuredatfairvalue,thecarryingamountsareequaltothefairvalues.Note 38: Financial risk management TheCompanyhasexposuretotheCreditrisk,LiquidityriskandMarketrisk.TheCompany'sBoardofDirectorshasoverallresponsibilityfor theestablishmentandsupervisionof theCompany's riskmanagement framework.TheBoardofDirectorshasestablished theRiskManagementCommittee(RMC),whichisresponsiblefordevelopingandmonitoringtheCompany'sriskmanagementpolicies.TheAuditCommitteeoverseeshowmanagementmonitorscompliancewiththeCompany'sriskmanagementpoliciesandprocedures,andreviewstheadequacyoftheriskmanagementframeworkinrelationtotherisksfacedbytheCompany.(A) Credit Risk:(i) CreditriskistheriskoffinanciallosstotheCompanyifacustomertoafinancialinstrumentfailstomeetitscontractualobligations.

Company'sexposuretocreditriskprimarilyarisesonaccountofitsTradereceivables.Tradereceivablesconsistofalargenumberof customers spread across diverse geographical areas. A default on a trade receivable is considered when the customer fails to make contractual payments within the credit period. This credit period has been determined by considering the business environment in whichtheCompanyoperates.TheCompanyconsidersdealingwithcreditworthycustomersandobtainingsufficientcollateral,whereappropriate,asameansofmitigatingtheriskoffinanciallossfromdefaults.Thecreditriskduetoaboveisperiodicallymonitored.Basedontheperiodicalanalyses,thecreditriskismanagedbycontinuousreviewandfollow-up.

(ii) Provision for expected credit losses (ECL): TheCompanyprovidesforexpectedcredit lossontradereceivablesbasedonaprovisionmatrix.Thismatrix isasimplifiedbasis

of recognition of expected credit losses in case of trade receivables. The model uses historical credit loss experience for trade receivables i.e. this model uses aging analysis of trade receivables as at the reporting date and is based on the number of days that a tradereceivablesispastdue.Theaginghasbeendoneforbracketof90daysoveraperiodoflast3years.Receivablesthataremorethan3yearsoldareconsidereduncollectible.Further,customersdeclaringbankruptcyorfailingtoengageinrepaymentplanwiththeCompany,provisioningismadeoncasetocasebasisi.e.suchcustomersdonotformpartofthisimpairmentexerciseandprovidedfor separately.

(iii) Reconciliation of Trade receivables:

Particulars 31 March 2020 31 March 2019Grosscarryingamountoftradereceivables 82,672 85,515Less:Expectedcreditlosses 8,469 10,940Less:Provisionmadeseparatelyforbankrupt/terminatedagents 1,059 4,255Less:OtherProvision(i.e.OffHire,Demurrage,others) 12,521 10,428Carrying amount of trade receivables (net of impairment) 60,623 59,892




(iv) Reconciliation of loss allowance provision (ECL)- Trade receivables:

Particulars AmountLoss allowance on 1st April 2018 12,504 Changesinlossallowance (1,564)Loss allowance on 31st March 2019 10,940 Changesinlossallowance (2,471)Loss allowance on 31st March 2020 8,469

(B) Liquidity risk(i) PrudentliquidityriskmanagementreferstothemanagementoftheCompany'sshorttermandlongtermfundingandliquiditymanagement

requirements.TheCompany'streasurymaintainsflexibilityinfundingbymaintainingavailabilityoffundsundercommittedcreditlines. Companymanagesliquidityriskbymaintainingadequatereserves,bankingfacilitiesandreserveborrowingfacilities,bycontinuouslymonitoringforecastandactualcashflows,andbymatchingthematurityprofilesoffinancialassetsandliabilities.

(ii) Maturitiesoffinancialliabilities ThetablesbelowanalysetheCompany’snon-derivativefinancialliabilitiesintorelevantmaturitygroupingsbasedontheircontractual

maturities. Thetableshavebeendrawnupbasedontheundiscountedcashflowsoffinancialliabilitiesbasedontheearliestdateonwhichthe

Companycanberequiredtopay.Inthetablebelow,borrowingsincludebothinterestandprincipalcashflows.Totheextentthatinterestratesarefloatingrate,theundiscountedamountisderivedfrominterestratecurvesattheendofthereportingperiod.

Contractual maturities of financial liabilities31 March 2020

Less than 1 year

Between 1 and 5 years

More than 5 years Total

Borrowings 318,900 139,088 45,820 503,808Trade payables 95,560 - - 95,560LeaseLiabilities 3,125 1,369 2,392 6,886Security and other deposits 1,013 25 - 1,038Othersfinancialliabilities 20,644 - - 20,644Total liabilities 439,242 140,482 48,212 627,936


Less than 1 year



Borrowings 297,007 213,242 68,570 578,819Trade payables 127,270 - - 127,270LeaseLiabilities - - - - Security and other deposits 861 41 - 902Othersfinancialliabilities 14,427 - - 14,427Total liabilities 439,565 213,283 68,570 721,418

(C) Market risk Market risk is the risk that changes in market indicators such foreign exchange rates, interest rates and commodity prices will affect the

Company'sincomeorthevalueofitsfinancialinstruments.TheCompany'sactivitiesmainlyexposeittorisksarisingfromchangesinforeignexchangerateandinterestrateandfreight/charterhirerates.

(i) Foreign currency risk TheCompanyoperatesvesselsinforeignwaters,earnsrevenuesandincursexpenditureinforeigncurrencies,primarilywithrespect

toUSD,EUROandcertainotherforeigncurrencies.ForeigncurrencyriskarisesfromfuturecommercialtransactionsandrecognisedassetsandliabilitiesdenominatedinacurrencythatisnottheCompany'sfunctionalcurrency(INR).

Considering thebusinessenvironment inwhichCompanyoperates,exposure to foreignexchange rate risk is largelymanagedbycollection of income in foreign currencies in short term bank accounts abroad.




(a) Foreign currency risk exposure: TheCompany'sexposuretoforeigncurrencyriskattheendofthereportingperiodexpressedinINR,areasfollows:


USD EUR Others USD EUR OthersFinancial assetsNonCurrentLoans&Advances 23,512 - - - - - Currentassets 2,440 - 79 10,599 - 77 CurrentLoans&Advances 610 - - 22,034 - - Cashandcashequivalents 801 748 1,290 2,017 729 386OtherBankBalances - - - 208 - - Trade Receivables 14,952 6,625 6,336 20,781 5,060 10,752Exposure to foreign currency risk (assets) 42,315 7,373 7,705 55,639 5,789 11,215 Financial liabilitiesLongTerm(Non-Current)Borrowings 167,738 - - 252,666 - - OthercurrentLiabilities 119,758 334 (69) 84,866 446 (504)ShortTermBorrowings 198,642 - - 158,748 - - TradePayables 21,315 5,494 8,941 57,628 1,927 9,364Exposure to foreign currency risk (liabilities) 507,453 5,828 8,872 553,908 2,373 8,860 Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale 22,346 - - 20,504 - - Total exposure to foreign currency risk (liabilities) 529,799 5,828 8,872 574,412 2,373 8,860

(b) Sensitivity ThefollowingtabledetailstheCompany'ssensitivitytoa3%increase/decreaseinINRasagainstUSDand3%increase/decreasein

INRasagainstEUR.Thesensitivityanalysisincludesonlyforeigncurrencydenominatedmonetaryitems.

ParticularsImpact on profit after tax

31 March 2020 31 March 2019USD sensitivityINR/USD-Increaseby3%(31March2019-3%) (14,625) (15,563)INR/USD-Decreaseby3%(31March2019-3%) 14,625 15,563EUR sensitivityINR/EUR-Increaseby3%(31March2019-4%) 46 137INR/EUR-Decreaseby3%(31March2019-4%) (46) (137)

(ii) Interest rate risk Interestrateriskistheriskthatthefuturecashflowsoffloatinginterestbearingborrowingswillfluctuatebecauseoffluctuationsinthe

interestrates.TheCompany’smaininterestrateriskarisesfromlong-termborrowingswithvariablerates,whichexposetheCompanytocashflowinterestraterisk.

TheCompany'sfixedrateborrowingsarecarriedatamortisedcost.TheyarethereforenotsubjecttointerestrateriskasdefinedinIndAS107,sinceneitherthecarryingamountnorthefuturecashflowswillfluctuatebecauseofachangeinmarketinterestrates.

TheCompanymanagesitsinterestrateriskbyregularlymonitoringtheinterestratemovementanddecidingontypeofinterestratei.e.fixedorfluctuating.

(a) Interest rate risk exposure TheexposureoftheCompany’sborrowingtointerestratechangesattheendofthereportingperiodareasfollows:

Particulars 31 March 2020 31 March 2019Variablerateborrowings 475,282 529,906Total borrowings at variable rate 475,282 529,906




(b) Sensitivity The sensitivity analysis has been determined based on the exposure to interest rate risk on the borrowings outstanding as at the end of

the reporting period. The analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstandingforthewholeyearwitha100basispointincreaseordecrease.


31 March 2020 31 March 2019Interestrates–increaseby100basispoints(100bps) (4,753) (5,299)Interestrates–decreaseby100basispoints(100bps) 4,753 5,299

(iii) Freight/Charter hire risk Shippingindustryisgovernedbyvariousnationalandinternationaleconomicandgeopoliticaldevelopments.Localandinternational

demandandsupplydeterminefreightandcharterhirerates.SinceCompany'svesselsplyininternationalwaters,itisaffectedbysuchdevelopments.Also,bunkercostismajorcomponentofCompany'scoststructureandbunkerpricesarehighlyvolatile.

Note 39: Capital management(a) Risk management TheCompany’sobjectiveswhenmanagingcapitalaretosafeguardthecompany’sabilitytocontinueasagoingconcerninorderto

providereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.

TheCompanymonitorscapitalonthebasisofthedebtequityratio.Thisratioiscalculatedasdebtdividedbytotalequity.DebtiscalculatedasLongTermBorrowings(includingcurrentportionofLongTermborrowingsasshownintheBalanceSheet).

Particulars 31 March 2020 31 March 2019NetDebt 275,477 368,997TotalEquity 729,818 698,121Net debt to equity ratio 0.38 0.53

(b) Loan covenants Thecompanyhas7ECBLoanAgreementswith5banksoutofwhich3banksarehavingfinancialcovenantofDebtServiceCoverage

Ratio(DSCR).OneofthebankcomputesDSCRbyaddingunencumberedcashwithEBIDTAhencerequiredDSCRismetforthatbankhoweverforremainingtwobanksDSCRisnotmetduringtheFinancialyear2019-20.Thecorporationisintheprocessofseekingwaiverforthebreachofthecovenantonthegroundthatallthefinancialobligationhavebeenmetappropriately.

Note 40Onthebasisofreviewofresidualvalueofvessels,2PSVand5AHTSvesselsareestimatedtobehavingscrapvaluelessthan5%oforiginalcost.Therefore,residualvalueof2PSVand5AHTSvesselsisreducedaccordingly.Duetothischange,depreciationfortheyearended31stMarch2020ishigherby`19.19lakhsandprofitfortheFY2019-20islowerby`19.19lakhs.Duetothesaidchange,depreciationexpenses for the future period will be higher by approximate `19.19lakhseveryyear.Note 41During the quarter ended31stMarch, 2020, theCompany sold its vesselMT.MaharajaAgrasenDWT1,47,474. TheMemorandumofAgreement(MOA)wassignedwiththebuyeron19.03.2020andInstrumentofSalewasreleasedtothebuyeron26.03.2020.InviewoftheworldwidepandemicduetospreadofCovid-19,SriLankahadimposednationwidelockdownandcurfew,duringwhichsigning-offandlandingofourcrewinSriLankanterritorywastotallybannedbythelocalauthorities.Thereafterthephysicaldeliveryofthevesseltobuyerfinallytookplaceon27.04.2020atGalleanchorage(SriLanka).Note 42C&AGhasraisedanobservationrelatingtopaymentofPerformanceRelatedPay(PRP)of` 11.03croresfortheFY2014-15withrespecttotwoissuesi.e.identificationofCoreandNonCoreincomeasperDPEguidelinesandobserving“BellCurve”approachinPRPcalculation.RegardingidentificationofCoreandNonCoreincome,theCompanyhastakentheissuefordeliberationintheNominationandRemunerationCommitteeoftheBoard.TheCommitteehasendorsedthestandtakenbytheCompanyoncertainitemsandadvisedtheCompanytotakethe matter forward. Appropriate action shall be taken based on further developments in the matter.




Note 43TheCovid-19outbreakhasaffectedthewholesupplychainworldwideandhashadsevereimpactwithrespecttopolitical,social,economicandfinancial frontsaswell.TheCompanyhasassessedtheoverall impactofthesituationinMarch2020itselfandhadtakeneffectivemeasures to minimise disruption to operations and ensure that the business remains viable during the virus outbreak and thereafter. Revenue oftheCompanyfortheyearended31stMarch2020isnotaffectedbypandemicCovid19asitstartedinlateMarch2020.Howevertherewasasuddendropinthecrudeoilprices,whichtouchedhistorically lowlevels.This ledtheCompanytowritedownits inventoriesby `829.14lakhsandcorrespondingimpactisdisclosedasexpenseintheStatementofProfitandLoss.It isalsofurtherassessedthatCovid-19doesnothaveanysignificantimpactonCompanyOperationsgoingforward.TheManagementbasedonitsassessmenthasestimateditsfuturecashflowsfortheCompanywhichindicatesnomajorchangeinthefinancialperformanceasestimatedpriortoCOVID-19andhence,theCompanybelievesthatthereisnoimpactonitsabilitytocontinueasagoingconcernandmeeting its liabilitiesasandwhen they falldue.Withsystemdrivenenvironment therehasbeenno impact in the internalcontrolsandreporting as well.Note 44Duringtheyearended31stMarch2020,DepartmentofInvestmentandPublicAssetManagement(DIPAM),GovernmentofIndiavideitsthreeseparatelettersno.F.No.7/4/2018-DIPAM-II-Adated8th January2020hasappointedthefollowingrespectivelyasTransactionAdvisor,LegalAdvisorandAssetValuerforStrategicDisinvestmentofSCI:i)M/s.RBSACapitalAdvisorsLLP;ii)M/s.Luthra&LuthraPartners;andiii)M/s.ProtocolInsuranceSurveyors&LossAssessorsPvt.Ltd.InformationsoughtbythethreeAdvisorsisbeingfurnishedbySCI.Note 45TradePayables,TradeReceivablesandDepositsaresubject toconfirmationand reconciliation.During theyear, letters forconfirmationofbalanceshavebeensenttovarioustradepayableandtradereceivablepartiesbytheCompanyandthesameareunderreconciliationwherever replies have been received. The management, however, does not expect any material changes on reconciliation.Note 46TheBoardofDirectors,initsmeetingheldonMay29,2020,hasrecommendedadividendof`0.75/-perequityshareoffacevalueof`10/-eachforthefinancialyearendedMarch31,2020.TheequitydividendissubjecttotheapprovaloftheshareholdersattheensuingAnnualGeneralMeetingandhasnotbeenincludedasliabilityinthesefinancialstatements.Thetotaloutflowonthisaccountisestimatedtobe `3493lakhs.Note 47The figures of previous year have been regrouped or rearrangedwherever necessary to conform to current year's presentation as perScheduleIII(DivisionII)totheCompaniesAct2013.

For Note no. 1 to 47 of Standalone Financial Statements



FR. No. 109208W


FR. No. 103523W/W100048



CA G SankarPartner











To the Members of The Shipping Corporation of India LimitedReport on the Audit of the Consolidated Ind AS Financial Statements1. OpinionWehaveaudited theaccompanyingconsolidated IndASfinancialstatementsofTheShippingCorporationofIndiaLimited(hereinafterreferredtoas“theHoldingCompany”)anditssubsidiary(theHoldingCompanyand itssubsidiary together referred toas“theGroup”),anditsjointventures,comprisingoftheConsolidatedBalanceSheetas atMarch 31, 2020, the Consolidated Statement of Profit andLoss (including Other Comprehensive Income), the ConsolidatedStatement of Changes in Equity and the Consolidated Statementof Cash Flows for the year ended and notes to theConsolidatedIndASFinancialStatementsincludingasummaryofthesignificantaccounting policies and other explanatory information (hereinafter referredtoas“ConsolidatedIndASFinancialStatements”).In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports ofotherauditorsonseparate IndASFinancialStatementsandontheotherfinancialinformationofthesubsidiaryandjointventures,the aforesaid consolidated Ind AS financial statements give theinformationrequiredbytheCompaniesAct,2013(“theAct”)inthemannersorequiredandgiveatrueandfairviewinconformitywiththe accounting principles generally accepted in India including the IndianAccountingStandards (“IndAS”)prescribedunder section133 of the Act, of the consolidated state of affairs of the Group

and its joint ventures as at March 31, 2020, their consolidatedprofit (including other comprehensive income), their consolidatedchanges in equity and their consolidated cash flows for the yearended on that date. BASIS FOR OPINIONWe conducted our audit in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilitiesfortheAuditoftheConsolidatedIndASFinancialStatementssectionofourreport.Weareindependentofthe Group and its joint ventures in accordancewith the Code ofEthics issued by the Institute of Chartered Accountants of India(“ICAI”) togetherwith theethical requirements thatarerelevant toourauditoftheconsolidatedIndASfinancialstatementsundertheprovisionsoftheActandRulesthereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheCodeofEthics.Webelievethattheauditevidencewehaveobtained is sufficient and appropriate to provide a basis for ouropinionontheconsolidatedIndASfinancialstatements.Key Audit Matters Key audit matters are those matters that, in our professionaljudgment,wereofmostsignificanceinourauditoftheConsolidatedInd AS Financial Statements of the current year. These matterswereaddressedinthecontextofourauditoftheConsolidatedIndAS Financial Statements as awhole, and in forming our opinionthereon, and we do not provide a separate opinion on these matters. Wehavedeterminedthemattersdescribedbelowtobethekeyauditmatters to be communicated in our report.

Sr. No. Key Audit Matter Auditor’s Response

1 Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 “Revenue from Contracts with Customers” (revenue accounting standard)The application of the new revenue accounting standard involves certain key judgments relating to identificationof distinct performance obligations, determination of transaction price of the identified performance obligations,the appropriateness of the basis used to measure revenue recognized over a period. Additionally, revenue accountingstandard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfiedsubsequenttothebalancesheetdate.(ReferNoteNo33totheConsolidatedFinancialStatements)

We assessed the Company’s process to identify the impact ofadoption of new revenue accounting standard.Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:• Evaluated the design of internal controls relating to

Implementation of the revenue accounting standard.• Selected a sample of continuing and new contracts, and

tested the operating effectiveness of the internal control, relating to identification of the distinct performanceobligations and determination of transaction price.

• Selected a sample of continuing and new contracts andperformed the following procedures:

Read, analyzed and identified the distinct performanceobligations in these contracts.

ComparedtheseperformanceobligationswiththatidentifiedandrecordedbytheCompany.

Considered the terms of the contracts to determine thetransaction price including any variable consideration to verify the transaction price used to compute revenue.

In respect of samples relating to fixed price contracts,progress towards satisfaction of performance obligation usedtocomputerecordedrevenuewasverified

Sample of revenues disaggregated by type and service offerings was tested with the performance obligations specifiedintheunderlyingcontracts




2 Impairment testing of Fleets in line with the Ind AS 36The Company at every reporting period, assesses marketconditions and other specific risks to determine if there areany triggering events that may be indicators of an impairment ofthefleets.Theimpairmentloss,ifany,isrecognizedintheStatementofProfitandLossintheperiodinwhichimpairmenttakesplace.TheprovisionforimpairmentoffleetsisidentifiedasaKeyAuditMatterasitinvolvessignificantmanagementassumptionsandjudgment to assess the market conditions and other associated risks in assessment of provisions.

We have obtained the management’s view to gain an overviewof the triggering events, market conditions (present & future)operational factors and other key assumptions supporting the impairment assessment.We have performed the following procedures for verification ofimpairmenttestingofFleets:• Understandingtheprocessforcollectingtheinputsintothe

valuationmodels to evaluate thedesignof theCompany’scontrols over its impairment assessment and challenged the appropriatenessof the inputsandsignificant assumptions,includingthecashflowprojections,discountrate,costsandexpenses.

• Re-performed the valuation calculations; benchmarked thevaluationmodelwithgenerallyacceptedvaluationtechniques;compared historical estimates used by management to actual results.

3 The direct access of certain overseas foreign agents to fund collected on account of freight and other charges.LinerdivisionoftheCompanyhasbeencarryingoutitsvesselsoperations and container marketing activities at various ports in India and abroad through its agency network. Agents perform various activities such as marketing, booking, clearing ofcargo,portcallsofvessels&alsocollectionoffreightonbehalfoftheCompany.The Company depends on its agents for operation of Linersegment business.Since all the activities are performed by the agents, there is requirementoffunds&collectionofincomeisdonedirectlybyagentsandsubsequentlyremittedtotheCompany.Thereforeit involves a risk on the part of the Company and hence isidentifiedasaKeyAuditMatter.

WeassessedtheCompany’sprocesstoevaluateAgentsontimelybasis to identify the impact of on the revenue and collection of funds.• TheCompanyhasconductedauditbyexternalCAFirmsof

major overseas agents to whom direct access to collection of fund on account of freight & other charges have beengivenbytheCompanyinordertoverifytheperformanceandinspection of evidence in respect of operations.

• TheCompanyhasalsoobtainedbankguaranteefrommajoragents&alsoreviewedthesameperiodicallytoconfirmitsvalidity and completeness with respect to risk exposure on revenue due to direct access to agents.

4 Evaluation of Dry Docking Cost & Repair Expenses of Vessels:- Asper IndAS16‘Property,PlantandEquipment’,subsequent costs like expenditure on major maintenancerefitsorrepairsincludingplanneddry-dockareincludedintheasset’scarryingamountorrecognizedasaseparateasset,asappropriate, when they meet the recognition criteria, i.e., only when it isprobable that futureeconomicbenefitsassociatedwiththeitemwillflowtotheCompanyandthecostoftheitemcan be measured reliably.Ashippingcompanyonperiodicbasisisrequiredtobringallships into dry dock for major inspection and overhaul. Overhaul expendituremightatfirstsightseemtobearepairtotheshipsbut it is actually a cost incurred in getting the ship back into seaworthy condition.The dry docking cost and repairs expenses of vessels are considered as Key Audit Matter as it requires managementjudgment to assess future economic benefits from theexpenditure incurred and the measurement of the cost.

Toassess the recognitionofdrydockingcost& repaircost,weperformed the following process:• Evaluatedthedesignofinternalcontrolsrelatingtothemajor

cost likerepairs&dry-dockingwhichareof twotypes i.e.planneddry-dock&Emergencydry-dock.

• Selected a sample to verify the operating effectiveness oftheinternalcontrol,relatingtoidentificationofthedistinctionbetweenthetwocosti.e.repair&dry-dockcost.

• Testedtherelevantinformationtechnologysystems’relatingtotheDry-dock&Fleetrelatedexpenses.




5 Provisions for taxes and Contingent LiabilitiesTheCompanyisinvolvedinvarioustaxesandotherdisputesfor which final outcomes cannot be easily predicted andwhich could potentially result in significant liabilities. Theassessment of the risks associated with the litigations is based oncomplexassumptions,whichrequiretheuseof judgmentand such judgment relates, primarily, to the assessment of the uncertainties connected to the prediction of the outcome oftheproceedingsandtotheadequacyofthedisclosuresinthe financial statements. Because of the judgment required,the materiality of such litigations and the complexity of the assessment process, the area is a key matter for our audit.

Our audit procedure in response to this key Audit Matter included, among others,• Assessment of the process and relevant controls

implemented to identify legal and tax litigations, and pending administrative proceedings.

• Assessment of assumptions used in the evaluation ofpotential legal and tax risks performed by the legal and tax departmentoftheCompanyconsideringthelegalprecedenceand other rulings in similar cases.

• Inquiry with the legal and tax departments regarding thestatusofthemostsignificantdisputesandinspectionofthekey relevant documentation .

• Analysisofopinionreceivedfromtheexpertswhereavailable.• Reviewoftheadequacyofthedisclosuresinthenotestothe

FinancialStatements.• We have observed that the provision for tax estimated as

above including the deferred tax, has not resulted in material deviation from the applicable rate of tax after considering the exemptions, deductions and disallowances as per the provisions of the Income Tax Act.

Emphasis of MatterWe draw attention to the following matters in the notes to theconsolidatedIndASfinancialstatements:(i) We draw attention to Note No. 42 to the Consolidated Ind

AS Financial Statements, which states that the ComptrollerandAuditorGeneralofIndia(“C&AG”)raisedanobservationrelatingtopaymentofPerformanceRelatedPay(PRP)ofRs.11.03crores for thefinancialyear2014-15with respect totwo issues i.e. identification of Core andNonCore incomeasperDPEguidelinesandobserving“BellCurve”approachinPRPcalculation.RegardingidentificationofCoreandNonCoreincome,theCompanyhastakentheissuefordeliberationintheNominationandRemunerationCommitteeoftheBoard.TheCommitteehasendorsedthestandtakenbytheCompanyoncertainitemsandadvisedtheCompanytotakethematterforward.

(ii) WedrawattentiontoNoteNo.45totheConsolidatedIndASFinancial Statements, which states that trade receivables,trade payables and deposits are subject to the balance confirmations, subsequent reconciliation and consequentialadjustments, if any.

Ouropinionisnotmodifiedinrespectofthesematters.Other InformationTheHoldingCompany’sBoardofDirectors is responsible for theother information. The other information comprises the information included in the Holding Company’s Director’s Report includingAnnexures to Director’s Report, Business Responsibility Report,Corporate Governance and Shareholder’s Information but doesnot include theConsolidated IndASFinancialStatementsandour

auditor’s report thereon. OuropinionontheConsolidatedIndASFinancialStatementsdoesnot cover the other information and we do not express any form of assurance conclusion thereon. Inconnectionwithourauditof theConsolidated IndASFinancialStatements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistentwiththeConsolidatedIndASFinancialStatementsorour knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report and the reports of other auditors, we conclude that there is a material misstatement of thisotherinformation,wearerequiredtoreportthatfact.Wehavenothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Consolidated Ind AS Financial Statements TheHoldingCompany’sBoardofDirectors is responsible for thepreparationandpresentationoftheseConsolidatedIndASFinancialStatementsintermsoftherequirementsoftheActthatgiveatrueand fair view of the consolidated financial position, consolidatedfinancial performance (including other comprehensive income),consolidatedchangesinequityandconsolidatedcashflowsoftheGroupincludingitsjointventuresinaccordancewiththeaccountingprinciples generally accepted in India, including Ind AS prescribed under section 133 of the Act, read with the Companies (IndianAccountingStandards)Rules,2015, as amended.The respectiveBoard of Directors of the companies included in the Group andof its joint ventures are responsible formaintenance of adequate



accounting records in accordance with the provisions of the Act forsafeguarding theassetsof theGroupandof its jointventuresand for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; anddesign, implementationandmaintenanceofadequate internalfinancial controls, thatwere operating effectively for ensuring theaccuracy and completeness of the accounting records, relevant to thepreparationandpresentationoftheIndASFinancialStatementsthat give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose ofpreparationoftheConsolidatedIndASFinancialStatementsbytheDirectorsoftheHoldingCompany,asaforesaid.In preparing the Consolidated Ind AS Financial Statements, therespectiveBoardofDirectorsofthecompaniesincludedintheGroupand of its joint ventures are responsible for assessing the ability of theGroupandofitsjointventurestocontinueasagoingconcern,disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management eitherintendstoliquidatetheGrouportoceaseoperations,orhasno realistic alternative but to do so.TherespectiveBoardofDirectorsofthecompaniesincludedintheGroupandof its jointventuresare responsible foroverseeing thefinancialreportingprocessoftheGroupandofitsjointventures.Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements Our objectives are to obtain reasonable assurance about whether the ConsolidatedIndASFinancialStatementsasawholearefreefrommaterial 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 economicdecisions of users taken on the basis of these consolidated Ind AS financial statements. As part of an audit in accordance withSAs, we exercise professional judgment and maintain professional skepticismthroughouttheaudit.Wealso:• Identifyandassesstherisksofmaterialmisstatementofthe

consolidatedIndASfinancialstatements,whetherduetofraudor error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient andappropriate 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 theaudit in order to design audit procedures that are appropriate inthecircumstances.Undersection143(3)(i)oftheAct,we

are also responsible for expressing our opinion on whether the Holding Company and its subsidiary company, whicharecompanies incorporated in India,haveadequate internalfinancial controls with reference to financial statements inplace and the operating effectiveness of such controls.

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

• Concludeontheappropriatenessofmanagement’suseofthegoing concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists relatedtoeventsorconditionsthatmaycastsignificantdoubtontheabilityof theGroupandits jointventurestocontinueas a going concern. If we conclude that a material uncertainty exists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresintheconsolidatedIndASfinancialstatementsor, ifsuchdisclosuresareinadequate,tomodifyour opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, futureeventsorconditionsmaycausetheGroupanditsjointventures to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content oftheConsolidated IndASFinancialStatements, including thedisclosures, andwhether theConsolidated IndASFinancialStatements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding thefinancial informationof theentitieswithin theGroupand itsjoint ventures to express an opinion on the ConsolidatedInd AS Financial Statements. We are responsible for thedirection, supervision and performance of the audit of the IndASFinancialStatementsofsuchentities included in theConsolidated Ind AS Financial Statements of whichwe arethe independent auditors. For the other entities included inthe Consolidated Ind AS Financial Statements, which havebeen audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of theauditscarriedoutbythem.Weremainsolelyresponsiblefor our audit opinion.

WecommunicatewiththosechargedwithgovernanceoftheHoldingCompanyandsuchotherentitiesincludedintheConsolidatedIndASFinancialStatementsofwhichwearetheindependentauditorsregarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovide thosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence, 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 consolidated Ind AS financialstatements of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law orregulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicatedinourreportbecausetheadverseconsequencesof doing so would reasonably be expected to outweigh the public interestbenefitsofsuchcommunication.Other Matters(a) We did not audit the Ind AS financial statements of one

subsidiary Company, whose Ind AS Financial Statementsreflects total assets of Rs. 5.47 lakhs as at March 31,2020, total revenuesofRs.0.32 lakhsandnetcash inflowsamountingtoRs.0.14lakhsfortheyearendedonthatdate,asconsidered in theConsolidated IndASFinancialStatements.The Consolidated Ind AS Financial Statements also includeGroup’sshareofnetprofitofRs.2,203.55lakhsfortheyearendedMarch31,2020,asconsideredintheConsolidatedIndASFinancialStatements,inrespectofthreejointventuresviz.,ILT1,2&3,whoseIndASFinancialStatementshavenotbeenauditedbyus.TheseIndASFinancialStatementshavebeenaudited by other auditors whose reports have been furnished to usbythemanagementandouropinionontheConsolidatedIndASFinancialStatements,insofarasitrelatestotheamountsand disclosures included in respect of these subsidiary and jointventures,andourreportintermsofsection143(3)oftheAct, in so far as it relates to the aforesaid subsidiary and joint ventures, is based solely on the reports of the other auditors.

All the joint ventures are located outside India whose FinancialStatementshavebeenpreparedinaccordancewithaccounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Holding Company’s managementhasconvertedthefinancialstatementsofsuchjointventureslocated outside India from accounting principles generally accepted in their respective countries to accounting principles generallyacceptedinIndia.Wehaveauditedtheseconversionadjustmentsmade by theHoldingCompany’smanagement.Our opinion in so far as it relates to the balances and affairs of such joint ventures located outside India is based on the report of other auditors and the conversion adjustments prepared by themanagementoftheHoldingCompanyandauditedbyus.

(b) The Consolidated Ind AS Financial Statements also includeGroup’s share of net profit of Rs. 1,210 lakhs for the yearendedMarch31,2020,asconsideredintheConsolidatedIndASFinancialStatements,inrespectofonejointventure,whoseIndASFinancialStatementshavenotbeenauditedbyus.ThisInd AS Financial Statements are unaudited and have beenfurnished to us by the management and our opinion on the ConsolidatedIndASFinancialStatements,insofarasitrelates

to the amounts and disclosures included in respect of this joint venture,andourreportintermsofsection143(3)oftheAct,inso far as it relates to the aforesaid joint venture, is based solely onsuchunauditedIndASFinancialStatements.Inouropinionand according to the information and explanations given to us bythemanagement,thisIndASfinancialstatementsarenotmaterialtotheGroupincludingitsjointventures.

(c) TheauditofConsolidatedIndASFinancialStatementsfortheyearendedMarch31,2019,wascarriedoutandreportedbyjointauditors,G.D.Apte&CoandA.Bafna&Co,videtheirunmodified audit report datedMay 28, 2019,whose reporthas been furnished to us by the management and which has been relied upon by us for the purpose of our audit of the ConsolidatedIndASFinancialStatements.

Our opinion on theConsolidated IndAS Financial Statements andourreportonOtherLegalandRegulatoryRequirementsbelow,isnotmodifiedinrespectoftheabovematterswithrespecttoourrelianceon the work done and the reports of the other auditors and the Ind AS FinancialStatementscertifiedbythemanagement.Report on Other Legal and Regulatory Requirements1. As requiredby section143(3) of theAct andbasedonour

audit, we report, to the extent applicable, that:a. We have sought and obtained all the information and

explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of theaforesaidConsolidatedIndASFinancialStatements;

b. Inouropinion,properbooksofaccountasrequiredbylawrelatingtopreparationoftheaforesaidConsolidatedIndASFinancialStatementshavebeenkeptsofarasitappears from our examination of those books and the reports of the other auditors;

c. The Consolidated Balance Sheet, the ConsolidatedStatement of Profit and Loss (including OtherComprehensive Income), the Consolidated StatementofChangesinEquityandtheConsolidatedStatementofCashFlowsdealtwithby this reportare inagreementwith the relevant books of account maintained for the purpose of preparation of the Consolidated Ind ASFinancialStatements;

d. In our opinion, the aforesaid Consolidated Ind ASFinancialStatementscomplywith the IndASspecifiedundersection133oftheActreadwiththeCompanies(Indian Accounting Standards) Rules, 2015, asamended;

e. In our opinion and to the best of our information and according to the explanations given to us, the Holding CompanybeingGovernmentCompanies,section164(2)relatedtodisqualificationsforappointmentofdirectorsare not applicable, in accordance with exceptions modificationsandadaptationsprovidedvideNotification


No. G.S.R. 463 (E) dated June 5, 2015 issued byMinistry of Corporate Affairs (the “Notification”) andthe reports of the statutory auditors of its subsidiary company, incorporated in India, none of the directors ofthesubsidiarycompanyisdisqualifiedasonMarch31,2020frombeingappointedasadirectorintermsofsection164(2)oftheAct;

f. With respect to the adequacy of the internal financialcontrols with reference to financial statements of theHoldingCompanyanditssubsidiarycompanyincorporatedin India and the operating effectiveness of such controls, refertoourseparatereportin“Annexure1”;

g. WithrespecttotheothermatterstobeincludedintheAuditor’sReport inaccordancewith the requirementsofsection197(16)oftheAct:

In our opinion and to the best of our information and according to the explanations given to us, the Holding Company and the subsidiary company incorporatedin India being Government Companies, section 197of the Act related to the managerial remuneration are not applicable to in accordance with exceptions modificationsandadaptationsprovidedvideNotificationNo. G.S.R. 463 (E) dated June 5, 2015 issued byMinistryofCorporateAffairs.

h. WithrespecttotheothermatterstobeincludedintheAuditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, in our

opinion and to the best of our information and according to the explanations given to us:(i) The consolidated Ind AS financial statements

disclose the impact of pending litigations on the consolidated financial position of theGroupand its joint ventures – Refer Note 28 to theconsolidatedIndASfinancialstatements;

(ii) Provision has been made in the consolidatedInd AS financial statements, as required underthe applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;

(iii) There were no amounts which were requiredto be transferred to the Investor Education and ProtectionFundbytheHoldingCompanyanditssubsidiary company incorporated in India.

2. Asrequiredundersub-section(5)ofsection143oftheAct,in case of Holding Company and its subsidiary companybeing theGovernmentCompaniesand its jointventuresnotbeing Government Companies, whose financial statementshavebeenconsolidated,undertheAct,wegivein“Annexure2”astatementonthemattersspecifiedinthedirectionsandsub-directionsissuedbyOfficeoftheComptrollerandAuditorGeneralofIndiawithrespecttotheHoldingCompanyonly.



G Sankar Hemant J. BhattPartner PartnerMembership No.46050 Membership No. 036834UDIN: 20046050AAAADC9620 UDIN: 20036834AAAABB5662




[Referred to in paragraph 2(f) under ‘Report on Other Legal andRegulatory Requirements’ section in our Independent Auditor’sReportofevendatetothemembersofTheShippingCorporationofIndiaLimitedontheConsolidatedIndASFinancialStatementsfortheyearendedMarch31,2020]Report on the Internal Financial Controls with reference to Financial Statements under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 (“the Act”)Inconjunctionwithourauditof theConsolidated IndASFinancialStatementsofTheShippingCorporationof IndiaLimited(“HoldingCompany”)asofandfortheyearendedMarch31,2020,wehaveaudited the internal financial controls with reference to financialstatements of the Holding Company and its subsidiary company,which are companies incorporated in India, as of that date.Management’s Responsibility for Internal Financial ControlsThe respective Board of Directors of the Holding Company andits subsidiary company, which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal control with reference tofinancial statements criteria established by the Holding Companyconsidering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the “Guidance Note”) issued by the Instituteof Chartered Accountants of India (“ICAI”). These responsibilitiesinclude the design, implementation and maintenance of adequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherenceto the respective 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 ofreliablefinancialinformation,asrequiredundertheAct.Auditor’s ResponsibilityOurresponsibility is toexpressanopiniononthe internalfinancialcontrolswithreferencetoFinancialStatementsofHoldingCompanyand its subsidiary company, which are companies incorporated in India, basedon our audit.We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing specifiedunder section 143(10) of the Act, to the extent applicable to anauditof internalfinancialcontrols,both issuedby the ICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperform theaudit toobtain reasonableassurance aboutwhether adequate internal financial controlswithreference to financial statements was established andmaintainedand if such controls operated effectively in all material respects.Our audit involves performing procedures to obtain audit evidence abouttheadequacyoftheinternalfinancialcontrolswithreferencetofinancialstatementsand theiroperatingeffectiveness.Ourauditof internal financial controlswith reference tofinancial statementsincluded obtaining an understanding of internal financial controlswith reference to financial statements, assessing the risk that amaterial 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 financialstatements,whetherduetofraudorerror.Webelievethat theauditevidencewehaveobtainedandtheauditevidence obtained by the other auditor, in terms of their report referred to in theOtherMattersparagraphbelow, is sufficient andappropriate to provide a basis for our audit opinion on the internal financialcontrolswith reference tofinancialstatementsofHoldingCompanyanditssubsidiarycompany.Meaning of Internal Financial Controls with reference to Financial StatementsA company's internal financial control with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control with reference to financial statements includesthosepoliciesandprocedures that (1)pertain to themaintenanceof records that, in reasonable detail, accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewith 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)providereasonableassuranceregardingpreventionortimelydetection of unauthorised acquisition, use, or disposition of thecompany'sassetsthatcouldhaveamaterialeffectonthefinancialstatements.Inherent Limitations of Internal Financial Controls with reference to Financial StatementsBecause of the inherent limitations of internal financial controlswith reference to financial statements, including the possibility ofcollusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also,projectionsofanyevaluationoftheinternalfinancialcontrolswithreferencetofinancialstatementstofutureperiodsaresubjectto the risk that the internal financial control with reference tofinancial statementsmaybecome inadequatebecauseofchangesin conditions, or that the degree of compliance with the policies or procedures may deteriorate.Qualified opinionAccording to the information and explanations given to us and based onouraudit,thefollowingmaterialweaknesseshavebeenidentifiedin the operating effectiveness of the Holding Company’s internalfinancialcontrolwithreferencetofinancialstatementsasatMarch31,2020:a) System for Monitoring and Clearing of Vendor Accounts

(IncludingAgentPrefunding)shouldbedoneontimelybasis.A ‘material weakness’ is a deficiency, or a combination ofdeficiencies,ininternalfinancialcontrolswithreferencetofinancialstatements, such that there is a reasonable possibility that a material misstatementofthecompany'sannualorinterimfinancialstatementswill not be prevented or detected on a timely basis.


Inouropinion,theHoldingCompanyandthesubsidiarycompany,which are companies incorporated in India, have, in all material respects, adequate internal financial controls with reference tofinancial statements as ofMarch31, 2020, basedon the internalcontrol with reference to financial statements criteria establishedby theCompanyconsidering theessential componentsof internalcontrolstatedintheGuidanceNoteissuedbytheICAI,andexceptforthe possible effects of the material weaknesses described above on the achievement of the objectives of the control criteria, the internal financialcontrolswith reference tofinancialstatementsofHoldingCompanyanditssubsidiarycompanywereoperatingeffectivelyasofMarch31,2020.Wehaveconsideredthematerialweaknessesidentifiedandreported

above in determining the nature, timing, and extent of audit tests appliedinourauditoftheConsolidatedIndASFinancialStatementsoftheHoldingCompanyfortheyearendedMarch31,2020andthesematerialweaknessdonotaffectouropinionontheConsolidatedIndASFinancialStatementsoftheHoldingCompany.Other MattersOur aforesaid reports under section 143(3)(i) of the Act on theadequacy and operating effectiveness of the internal financialcontrolswithreferencetofinancialstatementsinsofarasitrelatesto a subsidiary company, which is a company incorporated in India, is based on the corresponding report of the auditor of such company incorporated in India.







Directions under Section 143(5) of the Companies Act, 2013On the Accounts of The Shipping Corporation of India Limited for the year 2019-20

Sr. No.

DirectionsAuditors’ comments including Action taken

wherever required to be takenImpact on the Accounts and

financial statements

1 Whether the company has system in place to

process all the accounting transactions through IT

system? IfNO, the implicationsofprocessingof

accounting transactions outside IT system on the

integrity of the accounts alongwith the financial

implications, if any, may be stated.

The company has One Accounting System

i.e. SAP & other operating softwares such

as Danaos & Afsys etc. All these softwares

are integratedwitheachother&thereareno

transactions which are accounted outside the

IT System.

NoImpact

2 Whether there is any restructuringof anexisting

loanorcasesofwaiver/writeoffofdebts/loans/

interest etc. made by a lender to the company due

tothecompany’sinabilitytorepaytheloan?Ifyes,

thefinancialimpactmaybestated.

As explained to us and observed during the

course of audit, there is no restructuring of

anexistingloanorcasesofwaiver/writeoffof

debts/loans/interestetc.madebyalenderto

the company due to the company’s inability to

repay the loan.

NoImpact

3 Whether funds received/receivable for specific

schemes from central/ state agencies were

properlyaccountedfor/utilizedasperitstermand

conditions?Listthecasesofdeviation.

As explained to us & observed during thecourseofaudittheCompanyhasreceivedtwosubsidies in earlier years, status of the same is as follows:-

a) Related to Myanmar Service, Companyhas accounted and utilised the grant as per its term and conditions and amount spent exceeding the grant amounting to ` 4.67 Cr. is shown as receivable andprovision for doubtful advances is created on the same.

NoImpact

b) The Company had received Ministryof Shipping subsidy of Rs.19 croresin the financial year 2017-18 providedfor running direct shipping services betweenIndia toBangladesh-Myanmarand Srilanka - Maldives. However, the CompanyawaiteddirectionfromMinistryto start the Service and hence action for in-chartering of the vessel was deferred by theCompany. Infinancialyear2019-20, Ministry of Shipping directed torefund the Subsidy amount. Accordingly, subsidy and interest earned thereon from date of receipt of funds till date of refund amounting to `20.53croreswastransferred to Ministry of Shipping.

Impact


Sub-directions under Section 143(5) of the Companies Act, 2013 in respect of the Shipping Corporation of India Limited for the year 2019-20




1 WhetherSubstantialportionofRevenueBooked/invoicesraisedarereversedorcancelled?

As explained to us and observed during the course of audit, No substantial portion ofrevenue booked / invoices raised by companyare reversed or cancelled except that in normal course of business and due to provision created at the cut-off date as per relevant Ind AS.

NoImpact

2 State the system for providing Impairment to vessels

To determine Impairment of each vessel, carrying amount of the vessel is compared with its recoverableamount.Wherethecarryingamountof the vessel exceeds the recoverable amount, animpairmentlossforthevesselisrecognized.Recoverable amount of the vessel is higher of its MarketValue&Value inuseason thebalancesheet date.Market value of vessels at BalanceSheet date are based on valuation reports providedbyreputedinternationalValuationfirms.ValueinuseofvesselsisbasedonprojectionsofFutureCash inflows&Outflowsgeneratedfromthe use of the vessel and its subsequent sale.Cashinflowsandoutflowsusedinthecalculationare based on market report of research and advisoryfirms likeDrewry (whereavailable)aswell as best available management estimates. CashInflowonsaleofvesselsisconsideredastheirScrapValueattheendoftheirusefullife.TheValueinuseofVesselsasonthereportingdateisarrivedatbydiscountingtheNetCashInflowsbyusingWeightedAverageCostofCapital(WACC).

NoImpact

3 State the system for bifurcating repairs and expense for capitalization and charging torevenue.WhetherrepairsandexpenseswhichdonotaddtousefulIifeofvesselsarecapitalized?

As per the company's accounting policy, expenses incurred during the planned dry docking of vessels and other major repair expenses of vessels like replacement of auxiliary engine etc. are capitalised in the asset’s carrying amount if it is probable that future economic benefitsassociated with the itemwill flow to the entityand the cost of the item can be measured reliably asper the recognitioncriteriaof IndAS16.Allother repairs and expenses that do not meet the recognitioncriteriaof IndAS16arechargedtorevenue.As observed during the course of audit, repairs and other expenses which do not add to useful lifeofvesselsarenotcapitalisedbytheCompanyand the same are charged to revenue.

NoImpact






4 Whether Title to all investments / FD actuallyavailablewiththeCompany?

Title to all Investments including investments in shares & fixed deposits are available with thecompany.

NoImpact

5 Whether balance payable to Agents as atthe year-end is correctly reflected under the“Liability"headinBalanceSheet?

Yes,Asexplained&observedduringthecourseof audit at the end of the year, where money is payable to the agent, such balances are disclosed under the "Liability" head in the balance sheet,subject to reconciliation with Agents.

NoImpact






CONSOLIDATED BALANCE SHEET(AllamountsinINRlakhs,unlessotherwisestated)


As at 31 March 2019

ASSETSNon-current assetsProperty,plantandequipment 3 1,062,764 1,111,656Capitalwork-in-progress 4 284 763Other intangible assets 5 146 253Right-of-use asset 6 2,403 - Investmentsaccountedforusingtheequitymethod 6(a) 29,473 27,571Financialassets

i. Investments 7(a) 362 350ii.Loans 7(b) 22,474 2,036iii.Otherfinancialassets 7(c) 7 7

Income Tax assets (net) 8 20,112 15,562Other non-current assets 9 9,635 8,180Total non-current assets 1,147,660 1,166,378 Current assetsInventories 10 13,138 15,979Financialassets

i. Investments 7(d) - - ii. Trade receivables 7(e) 60,623 59,892iii.Cashandcashequivalents 7(f) 24,478 9,538iv.Bankbalancesotherthan(iii)above 7(g) 69,304 90,282v.Loans 7(b) 791 22,381vi.Otherfinancialassets 7(c) 56,312 47,667

Other current assets 9 19,547 23,545Assetsclassifiedasheldforsale 11 7 7 Total current assets 244,200 269,291 Total assets 1,391,860 1,435,669 EQUITY AND LIABILITIESEquityEquitysharecapital 12 46,580 46,580OtherEquity 13 701,786 671,743Total equity 748,366 718,323 LIABILITIESNon-current liabilitiesFinancialliabilitiesi.Borrowings 14(a) 167,738 252,666ii.LeaseLiabilities 14(b) 2,395 - iii.Otherfinancialliabilities 14(c) 25 41

Provisions 15 6,497 6,356Deferredtaxliabilities(net) 16 7,531 9,153Total non-current liabilities 184,186 268,216



CONSOLIDATED BALANCE SHEET(AllamountsinINRlakhs,unlessotherwisestated)


As at 31 March 2019

Current liabilitiesFinancialliabilitiesi.Borrowings 14(d) 198,642 158,748ii.LeaseLiabilities 14(b) 209 - iii. Trade payables

(a) total outstanding dues of micro enterprises and small enterprises; and 14(e) 629 545(b) total outstanding dues of creditors other than micro enterprises and small enterprises

14(e) 94,931 126,725

iv.Otherfinancialliabilities 14(c) 129,396 131,619Other current liabilities 17 12,148 9,859Provisions 15 1,007 1,130Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale 18 22,346 20,504Total current liabilities 459,308 2,648 Total liabilities 643,494 717,346 Total equity and liabilities 1,391,860 1,435,669

Theaccompanyingnotesno.1to50areanintegralpartoftheseConsolidatedFinancialStatements.



FR. No. 109208W


FR. No. 103523W/W100048



CA G SankarPartner









CONSOLIDATED STATEMENT OF PROFIT AND LOSS(AllamountsinINRlakhs,unlessotherwisestated)

Particulars Note Year ended 31 March 2020


Revenue from operations 19,20 442,544 387,285Other income 21 24,295 23,224Total Income 466,839 410,509 ExpensesCostofservicesrendered 22 255,825 253,296Employeebenefitsexpense 23 47,654 44,757Financecosts 24 36,413 35,905Depreciationandamortisationexpense 25 67,127 65,846Other expenses 26 25,070 18,189Total expenses 432,089 417,993 Profit/(Loss) before exceptional items,share of net profits of investments ac-counted for using equity method and tax

34,750 (7,484)

Shareofnetprofitofassociatesandjointventuresaccountedforusingequitymethod 3,414 5,932Profit/(Loss) before exceptional items and tax 38,164 (1,552)Exceptional items - - Profit/(Loss) before tax 38,164 (1,552)Tax expense 29Currenttax 4,850 7,090Tax pertaining to earlier years 154 - Deferredtax (1,622) (1,242)MATCreditEntitlement 1,134 (1,134)

Total tax expense 4,516 4,714 Profit/(Loss) for the period 33,648 (6,266)Other comprehensive income

Items that will not be reclassified to profit or loss:Remeasurementsgain/(loss)ofdefinedbenefitplans 1,462 564ShareofOCIofassociatesandjointventures,netoftax (5,068) 499

Other comprehensive income for the period, net of tax (3,606) 1,063 Total comprehensive income for the period 30,042 (5,203)

Earnings per equity share 27(1)Basicearningspershare(in`) 7.22 (1.35)(2)Dilutedearningspershare(in`) 7.22 (1.35)

Theaccompanyingnotesno.1to50areanintegralpartoftheseConsolidatedFinancialStatements.



FR. No. 109208W


FR. No. 103523W/W100048



CA G SankarPartner









CONSOLIDATED CASH FLOW STATEMENT(AllamountsinINRlakhs,unlessotherwisestated)



(A) Cash Flow from operating activities

Profit/(Loss) before income tax 38,164 (1,552)

Adjustments for

Add:

Depreciationandamortisationexpenses 67,127 65,846

Financecosts 20,937 24,586

Baddebtsandirrecoverablebalanceswrittenoff 2,782 986

Provisionfordoubtfuldebts (839) 3,195



ForeignCurrencyFluctuations 27,590 13,221

Less:

Dividendreceived (185) (287)

Interest received (8,116) (9,046)

Shareofprofitsofassociatesandjointventures (3,414) (5,932)

ExcessProvisionswrittenback (6,212) (1,778)

Profitonsaleofinvestment (226) -

Surplusonsaleoffixedassets (9,337) (11,395)

Changeinnon-currentinvestmentduetofairvaluation (12) (232)

Change in operating assets and liabilities

(Increase)/DecreaseintradeandOtherReceivables (7,565) (17,876)

(Increase)/Decreaseininventories 2,841 (4,326)

(Increase)/DecreaseintradeandotherPayables/Provision (18,612) 22,193

105,160 77,889

Cash generated from operations

Income taxes paid (10,688) (6,639)

Net cash inflow from operating activities (A) 94,472 71,250

(B) Cash flow from investing activities:

Purchaseofproperty,plantandequipment/intangibleassets (10,450) (27,866)

Saleproceedsofproperty,plantandequipment 11,844 16,050

Dividendreceived 185 287

Proceedsfromsaleofinvestments 226 5,605

Loanremmited/Recoveryto/fromemployeesandJointventure (488) 2,510

OtherDepositswithbanks 20,722 (3,095)

AdvancesandotherDeposits 88 (738)

Interest received 9,792 8,490

Net cash inflow / (outflow) from investing activities (B) 31,919 1,243



CONSOLIDATED CASH FLOW STATEMENT (AllamountsinINRlakhs,unlessotherwisestated)



C Cash flow from financing activities

Longtermloansrepaid (116,325) (117,798)

Longtermloansborrowed - 26,089

Shorttermloansborrowed/(repaid) 26,813 29,020

*DividendonsharespaidofearlieryearsandtransfertoIEPF - (20)

Interest paid (21,023) (22,640)

PaymentofLeaseliability (116) -

Otherfinancingcosts (1,318) (1,243)

Net cash outflow from financing activities (C) (111,969) (86,592)

Net increase/(decrease) in cash and cash equivalents (A+B+C) 14,422 (14,099)

Add:ChangesinBankbalances(unavailableforuse)* 257 (223)

Add:Cashandcashequivalentsatthebeginningofthefinancialyear 9,538 24,178

Exchangedifferenceontranslationofforeigncurrencycashandcashequivalents 261 (318)

Cash and cash equivalents at the end of the year** 24,478 9,538

**Comprisesof

Balanceswithbanksincurrentaccounts 21,830 5,995

Balanceswithbanksindepositsaccountwithoriginalmaturityoflessthanthree months

2,648 3,543

Total 24,478 9,538

*Therestrictionsareprimarilyonaccountofbankbalancesheldasmarginmoneydepositsagainstguarantees.Theaccompanyingnotesno.1to50areanintegralpartoftheseConsolidatedFinancialStatements.



FR. No. 109208W


FR. No. 103523W/W100048



CA G SankarPartner








The Shipping Corporation of India LimitedCO

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Corporate InformationTheShippingCorporationofIndiaLimited(“theCompany”)togetherwith its subsidiary and joint ventures (“theGroup”) is the largestIndianShippingCompanylimitedbyshares,incorporatedin1961.The Group is involved in business of transporting goods andpassengers.TheGroup’sownedfleetincludesBulkcarriers,Crudeoil tankers, Product tankers, Container vessels, Passenger-cum-Cargovessels,LPG/LNGcarriersandOffshoreSupplyVessels. Inaddition,theGroupmanagesalargenumberofvesselsonbehalfofvariousgovernmentdepartmentsandorganizations.TheregisteredofficeoftheCompanyislocatedatShippingHouse,245,MadameCamaRoad,NarimanPoint,Mumbai-400021.Theseconsolidatedfinancialstatementsareapprovedforissuebytheboardofdirectorson29thMay2020.Note 1: Significant Accounting PoliciesThe principal accounting policies applied in the preparation of these financial statements are set out below. The accounting policiesapplied are consistent with those of the previous financial yearsexceptfortheadoptionofIndAS116–Leasesw.e.f.April1,2019.TheconsolidatedfinancialstatementsarefortheGroupconsistingoftheCompanyanditssubsidiaryandjointventures.1.1 Basis of Preparation(a) Compliance with the Indian Accounting Standards TheConsolidatedfinancialstatementsofthegrouphavebeen

prepared in accordance with the Indian Accounting Standards (“IndAS”)notifiedunder theCompanies(IndianAccountingStandards)Rules,2015(asamendedfromtimetotime)readwithSection133oftheCompaniesAct,2013(“theAct”)tothe extent applicable and current practices prevailing within the Shipping Industries in India. The policies set out below have been consistently applied during the years presented.

(b) Historical cost convention The consolidated financial statements have been prepared

under the historical cost convention, as modified by thefollowing:• Certain financial asset and financial liabilities at fair

value; • Definedbenefitplans–planassetsthataremeasuredat

fair value Fairvalueisthepricethatwouldbereceivedtosellanasset

or paid to transfer a liability in an orderly transaction between marketparticipantsatthemeasurementdate.TheGroupusesvaluationtechniquesthatareappropriateinthecircumstancesand for which sufficient data are available to measure fairvalue, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements arecategorised within the fair value hierarchy, described as follows,basedonthelowestlevelinputthatissignificanttothe fair value measurement as a whole:

• Level1—Quoted(unadjusted)marketpricesinactivemarkets for identical assets or liabilities

• Level2—Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisdirectly or indirectly observable

• Level3—Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisunobservable

(c) The assets and liabilities reported in the balance sheet are classified on a “current/non-current basis”, with separatereportingofassetsheldforsale.Currentassets,whichincludecash and cash equivalents (includes earmarked balances,margin money for bank guarantee) are assets that are intended toberealized,soldorconsumedduringthenormaloperatingcycleoftheGrouporinthe12monthsfollowingthebalancesheet date; current liabilities are liabilities that are expected to besettledduringthenormaloperatingcycleoftheGrouporwithinthe12monthsfollowingthecloseofthefinancialyear.

(d) Theconsolidatedfinancialstatementsarepresentedin‘IndianRupees’(INR),whichisalsotheGroup’sfunctionalcurrencyand all amounts are rounded to the nearest lakhs, unless otherwise stated.

(e) Amended standard adopted by the Group –(i) Ind AS 116 “Leases” The Group has implemented the Ind AS 116 “Leases” as

notified by Ministry of Corporate Affairs on 30th March 2019 through the Companies (Indian Accounting Standard)AmendmentRules,2019.

TheGrouphasappliedthestandardw.e.f.accountingperiodcommenced on or after April 1, 2019 to its Leases usingthe modified retrospective approach, therefore previousperiod comparative figures are not adjusted in the financialstatements. This has resulted in recognising a lease liability measured at present value of the remaining lease payments and a corresponding Right-of-Use (ROU) asset as if theleasehasbeencommencedw.e.f.1stApril2019.TheGroupdiscounted remaining lease payments using the lessee’s incremental borrowing rate as at 1st April 2019. TheGrouphasalsoelectednottoapplytherequirementsofIndAS116to short term leases and leases for which underlying asset is of low value. In the results for the current period, the nature of expenses in respect of Operating lease has changed from lease rent in previous periods to depreciation cost for the right-of-use asset and finance cost for interest accrued onlease liability. The rights of use assets are depreciated on a straight line basis over a lease term.

TheGrouphasthereforerecognisedaleaseliabilityof` 2640lakhsandacorrespondingROUassetasat1st April2019.TheimpactofadoptingIndAS116ontheGroup’sfinancialresultsfortheyearended31st March2020isasfollows:1. Depreciationexpensehasincreasedby`293lakhsdue

toamortisationofROUasset.

Consolidated Financial Statement for the year ended 31 March 2020




Consolidated Financial Statement for the year ended 31 March 20202. Finance cost has increased by ` 249 lakhs due to

interest on outstanding lease liability.3. Otherexpenseshasbeendecreasedby`340lakhsdue

torecognitionof lease liabilityandcorrespondingROUasset.

4. ThenetimpactonPBTamountstoalossof̀ 202lakhs. The net impact of this adoption is not material on the

earnings per share. The other amendments encompass various guidance and clarifications which affectdisclosures. The disclosures of significant accountingreportingrequirementsandassumptionsrelatingleasesareprovidedinNote6,14(b),24,25and34.

In connection with the transition to the new standard, management has applied judgement and formed assumptions in relation to assessing the incremental borrowing rate, service components and extension options of leasing arrangements. Management has formed its judgements and assumptions based on historical experience, internal and external available information and data.

(ii) Ind AS 12 “Income Tax” - Uncertainty over income tax treatments

TheMinistryofCorporateAffairs(MCA)notifiedtheCompanies(Indian Accounting Standards) Amendment Rules, 2019 on30thMarch2019.TheRulesamendedIndAS12–Uncertaintyover income tax treatments. These amendments are applicable from 1 April 2019 onwards and the Group has applied thisamendment w.e.f. accounting period commenced on or after April1,2019.

The principles of uncertain tax treatments are included in the scopeofIndAS12“Incometaxes”.Itclarifiestherecognitionand measurement for income tax when it is unclear whether a taxation authority will accept the tax treatment claimed. An uncertain tax position arises where there is more than one possible interpretation of how tax regulations apply to a given transaction or event. The interpretation requires the Groupto determine whether uncertain tax treatments are assessed separatelyorasagroup.The interpretationalso requiresanassumption that a taxation authority has full knowledge of all relevant information.Where it isnotprobable thata taxationauthoritywillacceptanuncertaintaxtreatment,itrequirestheGrouptoreflecttheeffectoftheuncertaintyintheaccountingtaxposition.Finally,reassessmentshouldbeperformedonayearly basis in the event of changes in facts and circumstances.

Management reviewed the features of the new interpretation, notably in terms of tax risks included in the scope of the interpretation. However, the implementation of the standard has no impact on accounts.

(iii) The Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendment Rules, 2019 on 30th March 2019 and notified the following amendments (other than Ind AS 116 & amendment in Ind

AS 12 mentioned above) which were applicable for period beginning on 1st April 2019:

Amendments to Ind AS 103: Business Combinations – The amendment explains that when a party to a joint arrangement on obtaining a control of a business that is a joint operation and had right to the assets and obligation for the liabilities relating tothejointoperationimmediatelybeforetheacquisitiondate,the transaction is a business combination achieved in stages andacquirershallapplyrequirementforbusinesscombinationachievedinstages.TheGroupwillapplythisamendmentw.e.f.fromaccountingperiodcommencingonorafterApril1,2019.However, the adoption above amendments did not have any effectonthefinancialstatements.

Amendments to Ind AS 109: Financial Instruments - Prepayment features with Negative Compensation – Theamendment allows companies to measure particular prepayable financial assets with negative compensation atamortised cost or at fair value through other comprehensive income instead of measuring those assets at fair value through profitorloss.TheGroupwillapplythisamendmentw.e.f.fromaccounting period commencing on or after April 1, 2019.However, the adoption above amendments did not have any effectonthefinancialstatements.

Amendments to Ind AS 111: Joint Arrangements - JointControlandJointOperations–Theamendmentthatstatesthata party that participates in, but does not have joint control of, a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes abusinessasdefinedinIndAS103.Insuchcases,previouslyheld interests in the joint operation are not remeasured. The Groupwillapplythisamendmentw.e.f.fromaccountingperiodcommencingonorafterApril1,2019.However,theadoptionabove amendments did not have any effect on the financialstatements.

Amendments to Ind AS 19: Employee Benefits – PlanAmendment, Curtailment or Settlement - The amendmentsare relating to changes in determining the past service cost and current service cost on plan amendment, curtailment or settlement and about consideration of effect of asset ceiling. TheGroupwillapplythisamendmentw.e.f. fromaccountingperiod commencing on or after April 1, 2019.However, theadoption above amendments did not have any effect on the financialstatements.

Amendments to Ind AS 23: Borrowing Costs – The amendment is about determination of amount of borrowing cost eligible for capitalisation in a case where an entity borrows fund generally andusesthemforthepurposeofobtainingaqualifyingassetbyapplying a capitalisation rate to the expenditures on that asset. TheGroupwillapplythisamendmentw.e.f. fromaccountingperiod commencing on or after April 1, 2019.However, theadoption above amendments did not have any effect on the financialstatements.




Amendments to Ind AS 28: Investments in Associates and Joint Ventures - The amendment is about application of IndAS109(FinancialInstruments)tootherfinancialinstrumentsin an associate or joint venture towhich the equitymethodis not applied. The Group will apply this amendment w.e.f.fromaccountingperiodcommencingonorafterApril1,2019.However, the adoption above amendments did not have any effectonthefinancialstatements.

There are no other standard, changes in standards and interpretations that are not in force that the Group expectsto have a material impact arising from its application in its financialstatements.

1.2 Basis of Consolidation Subsidiaries

i. The Consolidated Financial Statements comprise thefinancialstatementsoftheCompanyanditssubsidiaryover which the group has control which has been preparedinaccordancewithIndAS110-“ConsolidatedFinancial Statements”. Control is achieved when theGroupisexposed,orhasrights,tovariablereturnsfromits involvement with the investee and has the ability to affect those returns through its power over the investee.

ii. The financial statements of the Company and itssubsidiary have been combined on a line by line basis by adding together the book values of like items of assets, liabilities, income and expenses after fully eliminating intra-groupbalancesandunrealisedprofitsorlossesonintra-group transactions.

iii. The consolidated financial statements have beenprepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible, in the same mannerastheCompany’sseparatefinancialstatements.

iv. The financial statements of the subsidiary used inconsolidation are drawn up to the same reporting date asthatoftheCompanyi.e.yearended31March2020.

Joint arrangements UnderIndAS111,“JointArrangements”,investmentsinjoint

arrangementsareclassifiedaseitherjointoperationsorjointventures.Theclassificationdependsonthecontractualrightsand obligations of each investor, rather than the legal structure ofthejointarrangement.TheCompanyhasonlyjointventures.

Joint ventures Theconsolidatedfinancial statements include the interest of

theCompanyinjointventureswhichareaccountedusingtheequitymethod.

Under theequitymethodofaccounting, the investmentsareinitially recognised at cost and adjusted thereafter to recognise theCompany’sshareofthepost-acquisitionprofitsorlossesof the investee in profit and loss, and theCompany’s share

of other comprehensive income of the investee in other comprehensive income. Dividend received or receivablesfrom joint ventures are recognised as reduction in the carrying amount of the investments.

WhentheCompany’sshareoflossesintheequityaccountedinvestments equals or exceeds its interest in the investee,including any other unsecured long term receivables, the Company does not recognise further losses, unless it hasincurred obligations.

The financial statements of the joint ventures used in theconsolidationhavebeenpreparedunder IFRS.For IndiaLNGTransportCompany(No.1,2,3,4)period1stApril2019to31st March2020hasbeentaken.Since, the IndiaLNGTransportCompany (No. 1, 2, 3, 4) are preparing audited financialstatements following calendar year, The audited financialresultsof ILT1, ILT2& ILT3and limited reviewedfinancialresultofILT4fortheperiodJanuary2020toMarch2020areadded to January2019 toDecember2019audited financialresultswhereasUnauditedfinancialresultsfortheperiodJan2019toMarch2019aredeductedtoarrivefinancialresultsfortheperiodApril2019toMarch2020ofJVCompanies.

The resultsandfinancialpositionof foreignoperationssuchas joint ventures that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • assetsandliabilitiesaretranslatedattheclosingrateat

the date of that balance sheet • incomeandexpensesaretranslatedataverageexchange

rates and • All resulting exchange differences are recognised in

other comprehensive income.1.3 Foreign currency translation(a) Functional and presentation currency Items included in the consolidated financial statements of

the Group are measured using the currency of the primaryeconomic environment in which the Group operates (‘thefunctional currency’). The consolidated financial statementsarepresentedin‘IndianRupees’(INR),whichistheGroup’sfunctionalandtheGroup’spresentationcurrency.

(b) Transactions and balances All foreign currency transactions are recorded at the previous

day’s available RBI reference rate/exchange rate publishedthrough FBIL (Financial Benchmarks India Private Limited).Since the RBI reference rate published through FBIL isavailable for fourmajor currenciesonly i.e,USD,UKP,EUR,YEN,exchangeratesofothercurrenciesaretakenfromxe.comwebsite.

The foreign currency balances in US Dollars, UK Pounds,EuroandJapaneseYENappearinginthebooksofaccountattheperiodendare translated intoUSDollarsat theavailable




RBI reference rate/exchange rate published through FBIL attheperiodend.TheforeigncurrencybalancesotherthanUSDollars, UK Pounds, Euro and Japanese YEN appearing inthebooksofaccountattheperiodendaretranslatedintoUSDollarsat the rateavailableonxe.comwebsiteat theperiodend. Thereafter, the monetary assets and monetary liabilities as well as the Long Term Loans are translated into rupeesat RBI reference rate/exchange rate published through FBILprevailing at the period end.

Exchange difference arising on repayment of liabilities and conversion of foreign currency closing balances pertaining to long term loans for acquiring ships / containers / otherdepreciable assets and asset under construction is recognised as follows:

a) In respect of long term loans as on 31.03.2016, exchangedifference is adjusted in the carrying cost of respective assets.

b) Inrespectoflongtermloansafter31.03.2016,theexchangedifferenceischarged/creditedtoStatementofProfit&Loss.

The exchange differences arising on translation of other monetary assets and liabilities are recognised in the Statement ofprofitandloss.

1.4 Property, plant and equipment Items of property, plant and equipment acquired or

constructed are stated at historical cost net of recoverable taxes, less accumulated depreciation and impairment of loss, if any. The cost of tangible assets comprises of its purchase price, borrowing costs and adjustment arising for exchange rate variations attributable to the assets, wherever applicable including any cost directly attributable till completion of maiden voyage.

Expenditure incurred on assets which are not ready for their intended use comprising direct cost, related incidental expenses and attributable borrowing cost (net of revenues during constructions) are disclosed under Capital Work-in-Progress.

Subsequent costs like expenditure on major maintenancerefitsorrepairsincludingplanneddrydockareincludedintheasset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefitsassociatedwiththeitemwillflowtotheGroupandthecost of the item can be measured reliably. The carrying amount of the replaced part is derecognised.

Transition to Ind AS:On transition to Ind AS -a) Freehold land has beenmeasured at fair value on transition

date and that fair value is used as the deemed cost;b) Certainitemsoffleethavebeenmeasuredatfairvalueandthat

fair value is used as deemed cost as on transition date. c) All other assets which are not fair valued have been measured

inaccordancewithIndAS16retrospectively.

Depreciation:Depreciation on all vessels is charged on “Straight LineMethod”lessresidualvalue.InthecaseofLinerandBulkCarriervessels,theGrouphasadoptedusefullifeof25yearsasmentionedinScheduleIItotheCompaniesAct,2013.IncaseofTankers&OffshoreVessels,the Group has adopted a useful life of 25 years based on thetechnical parameters including design life and the past record. . In caseofVLGCvessel,theGrouphasadoptedausefullifeof30yearsasmentioned inSchedule II to theCompaniesAct,2013.Secondhand vessels are depreciated over their remaining useful lives as determinedbytechnicalevaluationnotexceeding25/30yearsfromthe date of original built.Capitalised expenditure on drydock are depreciated until the nextplanned dry-docking.Depreciationonothertangibleassetsisprovidedonthestraightlinebasis, over the estimated useful lives of assets as prescribed in the Schedule II of the Act, except in following cases:1) SolarPlantsaredepreciatedoveraperiodof25yearsbased

on the technical assessment of useful life.2) Assets costing individually Rs. 5000/- and below are fully

depreciatedintheyearofacquisition.3) Furnishing allowances given to Senior Executives are

depreciatedoveraperiodof3years.Estimated useful lives, residual values and depreciation methods are reviewed annually, taking into account commercial and technological obsolescence as well as normal wear and tear and adjusted prospectively, if appropriate.Retirement and Disposal Of Assets a) Assets which have been retired from operations for eventual

disposalareexhibitedseparatelyintheNoteNo.11-Assetsclassifiedasheldforsale.

b) Anticipated loss, if any, in the disposal of such assets is provided in the accounts for the year in which these have been retiredfromactiveuse.Forthepurposeofdeterminingtheloss,the sale price is recognised, if contract for sale is concluded. In other cases, assessment of the realisable value is made on thebasisoftheprevailingmarketconditions.Lossesonsuchassets are provided for after taking into account the expenses suchascustomsduty,salestax/valueaddedtax,GSTetc.inconnection with the disposal, as well as estimated expenses in maintainingtheasset,tillitssale.Wherevertheexactamountunder each item of expenses is not known, an assessment is done on the best estimate basis.

c) Profits on sale of assets are accounted for only uponcompletion of sale thereof.

1.5 Intangible assets Intangibleassetsacquiredarestatedatcostlessaccumulated

amortization and accumulated impairment losses, if any.The cost comprises of purchase price, borrowing costs and directly attributable costs.




Transition to Ind AS: OntransitiontoIndAS,theGrouphaselectedtocontinuewith

the carrying value of all of intangible assets recognised as at April1,2015measuredasperthepreviousGAAPandusethatcarrying value as the deemed cost of intangible assets.

Amortisation Amortization is charged on a straight-line basis over

the estimated useful lives. The estimated useful life and amortizationmethodarereviewedat theendofeachannualreporting period, with the effect of any changes in the estimate being accounted for on a prospective basis.

Intangible assets including software is amortised over the usefullifenotexceedingfiveyears.

1.6 Borrowing costs Borrowing costs that are attributable to the acquisition or

constructionofqualifyingassetsarecapitalisedaspartofthecostofsuchassets.Aqualifyingassetisonethatnecessarilytakes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of ProfitandLossintheperiodinwhichtheyareincurred.

1.7 Impairment of non-financial assets Assets that are subject to depreciation or amortisation are

reviewedforimpairment31stMarcheveryyearorwheneverevents or changes in circumstances indicate that the carrying amount may not be recoverable. The impairment loss, if any, isrecognisedintheStatementofProfitandLossintheperiodin which impairment takes place.

1.8 Inventories Inventories are valued at cost (as determined on Moving

Average/WeightedAveragemethod)ornetrealisablevalue,whichever is lower, unless otherwise stated.

Fueloilpurchasesare initiallybookedasstock.Thevalueofyear-end stock is arrived at after charging consumption on “movingaverage/weightedaverage”method.

Store/Sparesincludingpaints,etc.arechargedtorevenueasconsumed when delivered to ships.

1.9 Non-current assets held-for-sale Non-currentassetsareclassifiedasassetsheldforsalewhen

their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use.

1.10 Trade Receivable Trade receivables are amounts due from customers for sale

of goods or services performed in the ordinary course of business.Tradereceivablesarerecognizedinitiallyatfairvalue.Theyaresubsequentlymeasuredatamortisedcostusingtheeffective interest method, net of provision for impairment. The

carrying value less impairment provision of trade receivables, are assumed to be approximate to their fair values.

1.11 Cash and cash equivalents Cashandcashequivalentsincludescashatbankandinhand,

depositswithbanks,othershort-termhighlyliquidinvestmentswith original maturities of three months or less from date of acquisition.

For the purpose of the statement of cash flows, cash andcashequivalentsconsistofcashandshort-termdeposits,asdefinedabove.

1.12 Investments and other financial assetsi. Initial recognition and measurement Allfinancialassetsarerecognisedinitiallyatfairvalueplus,in

thecaseoffinancialassetsnotrecordedatfairvaluethroughprofit or loss, transaction costs that are attributable to theacquisitionofthefinancialasset.

ii. Subsequent measurement Forpurposesofsubsequentmeasurement,theGroupclassifies

itsfinancialassetsinthefollowingmeasurementcategories:• thosetobemeasuredsubsequentlyatfairvalue(either

throughothercomprehensiveincome,orthroughprofitor loss), and

• thosemeasuredatamortisedcost. Theclassificationdependsontheentity’sbusinessmodelfor

managingthefinancialassetsandthecontractualtermsofthecashflows.Forassetsmeasuredatfairvalue,gainsandlosseswilleitherberecordedinprofitorlossorothercomprehensiveincome.Forinvestmentsindebtinstruments,thiswilldependon the businessmodel inwhich the investment is held. Forinvestmentsinequityinstruments,thiswilldependonwhethertheGrouphasmadeanirrevocableelectionatthetimeofinitialrecognition toaccount for theequity investmentat fairvaluethrough other comprehensive income.

TheGroupreclassifiesdebtinstrumentswhenandonlywhenits business model for managing those assets changes.

Debt instruments Subsequentmeasurementofdebtinstrumentsdependsonthe

Group’sbusinessmodelformanagingtheassetandthecashflowcharacteristicsoftheasset.TherearethreemeasurementcategoriesintowhichtheGroupclassifiesitsdebtinstruments:

Amortised cost: Assets that are held for collection of contractualcashflowswherethosecashflowsrepresentsolelypayments of principal and interest are measured at amortised cost.Againorlossonadebtinstrumentthatissubsequentlymeasured at amortised cost is recognised in profit or losswhen the asset is derecognised or impaired. Interest income fromthesefinancialassetsisincludedinfinanceincomeusingthe effective interest rate method.

Fair value through other comprehensive income (FVTOCI): Assets that areheld forcollectionof contractual cashflows




and for selling the financial assets, where the assets’ cashflowsrepresentsolelypaymentsofprincipalandinterest,aremeasured at fair value through other comprehensive income (FVTOCI). Movements in the carrying amount are takenthroughOCI,exceptfortherecognitionofimpairmentgainsorlosses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss.When the financialasset is derecognised, the cumulative gain or loss previously recognisedinOCIisreclassifiedfromequitytoprofitorloss.Interestincomefromthesefinancialassetsisincludedinotherincome using the effective interest rate method.

Fair value through profit or loss (FVTPL): Assets that do not meetthecriteriaforamortisedcostorFVTOCIaremeasuredat fair value throughprofitor loss.Againor lossonadebtinstrumentthatissubsequentlymeasuredatfairvaluethroughprofit or loss is recognised in profit or loss in the period inwhichitarises.Interestincomefromthesefinancialassetsisincluded in other income.

Equity Instruments The Group subsequentlymeasures all equity instruments at

fairvalue.Changesinthefairvalueoffinancialassetsatfairvaluethroughprofitorlossarerecognisedinthestatementofprofitandloss.

iii. Derecognition Afinancialassetisderecognisedonlywhen:

i. the rights to receive cash flows from the asset haveexpired, or

ii. theGrouphastransferreditsrightstoreceivecashflowsfrom the asset or has assumed an obligation to pay the receivedcashflowstooneormorerecipient

Wheretheentityhastransferredanasset,theGroupevaluateswhether it has transferred substantially all risks and rewards of ownershipofthefinancialasset. Insuchcases,thefinancialasset is derecognised.Where the entity has not transferredsubstantiallyallrisksandrewardsofownershipofthefinancialasset,thefinancialassetisnotderecognised.

Wheretheentityhasneither transferredafinancialassetnorretains substantially all risks and rewards of ownership of the financialasset,thefinancialassetisderecognisediftheGrouphasnotretainedcontrolofthefinancialasset.WheretheGroupretainscontrolofthefinancialasset,theassetiscontinuedtobe recognised to the extent of continuing involvement in the financialasset.

iv. Impairment of Financial Assets TheGroupassessesonaforwardlookingbasistheexpected

credit losses associated with its assets carried at amortised cost and FVTOCI debt instruments. The impairmentmethodology applied depends on whether there has been a significantincreaseincreditrisk.

Theimpairmentmethodologyforeachclassoffinancialassetsstated above is as follows:

Debt instruments measured at amortised cost and FVTOCI: DebtinstrumentsatamortisedcostandthoseatFVTOCIwherethere has been a significant increase in credit risk, lifetimeexpected credit loss provision method is used and in all other cases,theimpairmentprovisionisdeterminedas12monthsexpected credit losses.

Trade receivables from customers: The Group applies thesimplified approach for providing expected credit lossesprescribed by Ind AS 109, which requires the use of thelifetime expected loss provision for all trade receivables.

v. Income recognition Interest income Interest income from debt instruments is recognised using the

effective interest rate method. The effective interest rate is the ratethatexactlydiscountsestimatedfuturecashflowsthroughtheexpected lifeof thefinancial asset to thegrosscarryingamount of a financial asset. When calculating the effectiveinterestrate,theGroupestimatestheexpectedcashflowsbyconsideringallthecontractualtermsofthefinancialinstrument(for example, prepayment, extension, call and similar options) but does not consider the expected credit losses

Dividend Dividendsarerecognisedinprofitorlossonlywhentherightto

receive payment is established, it is probable that the economic benefitsassociatedwith thedividendwill flow to theGroup,and the amount of the dividend can be measured reliably.

1.13 Offsetting Financial instruments Financialassetsand liabilitiesareoffsetand thenetamount

reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

1.14 Contributed equity Ordinary shares are classified as equity. Incremental costs

directly attributable to the issue of new shares or options are showninequityasadeduction,netoftax,fromtheproceed

1.15 Financial liabilities i. Classification as debt or equity Debt and equity instruments issued by the Group are

classified as either financial liabilities or as equity inaccordance with the substance of the contractual arrangementsandthedefinitionofafinancialliabilityandanequityinstrument.

An equity instrument is any contract that evidences aresidual interest in the assets of an entity after deducting all of its liabilities.

ii. Initial recognition and measurement Allfinancialliabilitiesarerecognisedinitiallyatfairvalueand,in

the case of borrowings and payables, net of directly attributable transaction costs.




The Group’s financial liabilities include trade and otherpayables, loans and borrowings including bank overdrafts.

iii. Subsequent measurement Themeasurementof financial liabilitiesdependson their

classification,asdescribedbelow: Borrowings: Borrowings are subsequently carried at

amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in thestatementofprofitand lossover theperiodof theborrowings using the effective interest method.

Trade and other payable: These amounts represent obligations to pay for goods or services that have been acquiredintheordinarycourseofbusinessfromsuppliers.Theyarerecognizedinitiallyatfairvalueandsubsequentlymeasured at amortised cost using the effective interest method.

iv. Derecognition A financial liability is derecognised when the obligation

under the liability is discharged or cancelled or expires. Whenanexistingfinancial liability is replacedbyanotherfrom the same lender on substantially different terms, or thetermsofanexistingliabilityaresubstantiallymodified,such an exchange or modification is treated as thederecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amountsisrecognisedinthestatementofprofitorloss.

1.16 Income tax Provision for income tax liability is made as per special

provisions relating to income of shipping companies under the IncomeTaxAct,1961onthebasisofdeemedtonnageincomeof the Group. Provision for incometax on non- shippingincome is made as per the normal provisions of the Income- Tax Act 1961 As per the newly introduced section 115BAAoftheAct,witheffectfromtheyearended31stMarch2020,all domestic companies shall have an option to pay income tax@22%[excludingsurchargeandcess]orattherateasapplicable from time to time subject to conditions.

Deferred income tax is provided in full, using the liabilitymethod, on temporary differences (other than those which are covered in tonnage tax scheme) arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are recognizedto the extent that it is probable that future taxable income will be available against which the deductible temporary can be utilised.

Deferredtaxassetsandliabilitiesaremeasuredbasedonthetax rates that are expected to apply in the period when the asset is realizedor the liability issettled,basedon tax ratesand tax laws that have been enacted or substantively enacted by the balance sheet date.

Current and deferred tax is recognised in profit or loss,except to the extent that it relates to items recognised in other comprehensiveincomeordirectlyinequity.

1.17 Employee Benefitsa) Short-term / long term obligations All employee benefits payable wholly within twelve

months of rendering the service including performance incentivesandcompensatedabsencesareclassifiedasshorttermemployeebenefits.Theundiscountedamountofshorttermemployeebenefitsexpectedtobepaidinexchange for the services rendered by employees are charged off to the Statement of Profit and Loss. Theemployee benefits which are not expected to occurwithintwelvemonthsareclassifiedaslongtermbenefitsand are recognised as liability at the net present value.

b) Defined contribution plan Employee benefits under defined contribution plans

comprisingofpost-retirementmedicalbenefits(w.e.f01.01.2007), provident fund and pension contributionare recognized based on the undiscounted amount ofobligationsof theGrouptocontributetotheplan.Thiscontribution is recognised based on its undiscounted amount and paid to a fund administered through a separate trustexceptpost - retirementmedicalbenefitforemployee’sretiredw.e.f01.01.2007.

c) Defined benefit plan Employee benefits under defined benefit plans

comprising of gratuity, leave encashment and post- retirementmedicalbenefitsforemployeesretiredbefore01.01.2007arerecognizedbasedonthepresentvalueofdefinedbenefitobligation,whichiscomputedonthebasis of actuarial valuation.

Thedefinedbenefitobligationiscalculatedannuallybyindependent actuaries using the projected unit credit method.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts includedinnetinterestonthenetdefinedbenefitliabilityand the return on plan assets (excluding amounts included in net interest on the net defined benefitliability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earningsthroughOCIintheperiodinwhichtheyoccur.Remeasurementsarenotreclassifiedtoprofitorlossinsubsequentperiods.

Netinterestiscalculatedbyapplyingthediscountratetothenetdefinedbenefitliabilityorasset.

1.18 Prior period items All material prior period errors are adjusted retrospectively in

thefirstsetofconsolidatedfinancialstatementsapprovedfor




issue after their discovery by: (a) Restating the comparative amounts for the prior period(s)

presented in which the error occurred; or (b) If the error occurred before the earliest prior period

presented, restating the opening balances of assets, liabilitiesandequityfortheearliestpriorperiodpresented.

1.19 Provisions, contingent liabilities and contingent assets Provisions Provisions are recognised when the Group has a present

legal or constructive obligation as a result of past events; it is probablethatanoutflowofresourceswillberequiredtosettlethe obligation; and the amount has been reliably estimated.

Contingent liabilities Contingent liabilities are disclosedwhen there is a possible

obligation arising from past events, the existence of which will beconfirmedonlybytheoccurrenceornon-occurrenceofoneor more uncertain future events not wholly within the control oftheGroup.Apresentobligationthatarisesfrompasteventswhereitiseithernotprobablethatanoutflowofresourceswillberequiredtosettleorreliableestimateoftheamountcannotbe made, is treated as contingent liability.

Contingent Assets Acontingentassetisdisclosed,whereaninflowofeconomic

benefitsisprobable.1.20 Revenue Recognition RevenueIncomeisrecognisedintheStatementofProfitand

Losswhen:• Theincomegeneratingactivitieshavebeencarriedout

on the basis of a binding agreement • Theincomecanbemeasuredreliably• Itisprobablethattheeconomicbenefitsassociatedwith

thetransactionwillflowtotheGroup• Costs relating to the transaction can be measured

reliably Revenue for all businesses is recognised when the

performance obligation has been satisfied, which happensupon the transfer of control to the customer at an amount that reflects the consideration towhich theGroup expects to beentitled in exchange for the goods and services.

Revenue is recognised when or as performance obligations aresatisfiedbytransferringthepromisedgoodsorservicestothe customer, i.e. at a point in time or over time provided that the stage of completion can be measured reliably.

Revenue mainly comprises freight, charter hire and demurrage revenues from the vessels.

Freight-TheGroupgeneratesrevenuefromshippingactivities.Revenues from vessels are mainly derived from a combination of time charters and voyage charters. Revenue from a voyage charter is recognised over time, which is determined on a

percentage of voyage completion method. Charter-hire-Revenuefromatimecharterisrecognisedona

straight-line basis over the period of the charter. Demurrage revenue - Freight contracts contain conditions

regarding the amount of time available for loading and discharging of the vessel. If these conditions are breached, the Group iscompensatedfor theadditional time incurred in theformofdemurragerevenue.Demurragerevenueisrecognisedupon delivery of services in accordance with the terms and conditionsofthecontract.Uponcompletionofthevoyage,theGroupassessesthetimespentinport,andademurrageclaimbased on the relevant contractual conditions is submitted to thecharterers.(Further,referNoteNo2(g)–Demurrage).

Profitfromsaleofvessels-Revenuefromthesaleofvesselisrecognised upon the transfer of control to the buyer.

Costofservicesrenderedincludesportexpenses,bunkers(FuelOil), commissions, hire of chartered steamers, stores, spares, repair and maintenance expenses, Insurance expenses etc.

Employee Benefit Expenses - Operating expenses, whichcompriseofshorestaff&floatingstaffexpenses.

Financial expenses - Financial expenses comprise interestexpenses.

Other expenses – Other expenses which comprise officeexpenses, provisions, managements cost and other expenses relating to administration.

1.21 Insurance, P&I and Other Claims(a) ProvisioninrespectofclaimsagainsttheGroupismade

as under:-i. In respect of collision claims and P& I claims

(other thancrew&cargoclaims), to theextentof deductible limit based on the assessment provided by the surveyors.

ii. IncaseofCargoclaims,actualclaimsregisteredand/or paid pertaining to the relevant year’svoyages as ascertained at the period end or the P&Ideductiblelimitwhicheverislower.

(b) No provision is made in respect of claims by theGroupcoveredunderHull&Machinery insuranceandtreatment of such claims is as under:-i. Expenses on account of particular and general

average claims/ damages to ships are chargedoff in the period in which they are incurred.

ii. Claims against the underwriters are initiallyaccounted for based on the admission of the claims liability by the underwriters. The finaladjustment in the recoverable amount is done on submission of the Adjuster’s report to the underwriterswhichreflecttheexactrecoverableamount from the underwriters

(c) Claims made by the Group against other parties notcovered under insurance including ship repair yards, ship-owners, ship charterers, customs and others, etc.




are recognised on realisation, due to uncertainty in the amounts of their ultimate recovery

1.22 Leases A contract or parts of contracts that conveys the right to

control theuseof an identifiedasset for aperiodof time inexchange for payments to be made to the owners (lessors) are accountedforasleases.Contractsareassessedtodeterminewhether a contract is, or contains, a lease at the inception of a contract or when the terms and conditions of a contract are significantlychanged.

Where the Group is the lessee in a lease arrangement atinception,theleasecontractsarerecognizedasrights-ofuseassets and lease liabilities are measured at present value of lease payments at initial recognition except for short-term leases and leases of low value. The rights of use assets are depreciatedonastraight linebasisovera leaseterm.Leasepayments are discounted using the interest rate implicit in the lease. If that rate is not readily available, the incremental borrowing rate is applied. The incremental borrowing rate reflectstherateofinterestthatthelesseewouldhavetopaytoborrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a similar economic environment. Payments associated with short-term leases and leases oflow-valueassetsarerecognisedbasisasanexpenseinprofit&lossAccount.

Where the Group is the lessor in a lease arrangement atinception,theleasearrangementwillbeclassifiedasafinancelease or an operating lease. Classification is based on theextent to which the risks and rewards incidental to ownership oftheunderlyingassetliewiththelessororthelessee.Underoperating lease, where the Group is the lessor, the assetsare included in the balance sheet and, where applicable, are depreciated in accordance with the Group’s depreciationpoliciesassetoutinNote1.3Property,plantandequipment.Revenue arising from assets leased out under operating leases is recognised on overtime basis.

1.23 Segment Reporting Operating segments are reported in a manner consistent with

the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board ofDirectorsthatmakesstrategicdecisions.

1.24 Earnings per share Basic iscomputedbydividing thenetprofit after taxby the

weightedaveragenumberofequitysharesoutstandingduringthe period. Diluted earnings per equity share are computedbydividing thenetprofitattributable to theequityholdersoftheGroupby theweightedaveragenumberofequitysharesconsidered for deriving basic earnings per equity share andalsotheweightedaveragenumberofequitysharesthatcould

have been issued upon conversion of all dilutive potential equityshares.

1.25 Cash flow statement Cashflowsare reportedusing the indirectmethod,whereby

profitbeforetax isadjustedfor theeffectsof transactionsofnon-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating,investingandfinancingactivitiesoftheGrouparesegregatedbased on the available information.

1.26 Government Grants Grants from the government are recognised at their fair

value where there is a reasonable assurance that the grant willbe receivedand theGroupwill complywithall attachedconditions. Government grants relating to duty scrips onexport of services (Served from India Scheme) are related to incomeandarerecognisedintheprofitorlossovertheperiodnecessary to match them with the costs that they are intended to compensate and presented within other income.

Government grants are recognised in profit or loss on asystematic basis over the periods in which the entity recognises as expenses the related costs for which the grants are intended to compensate.

Note 2: Critical Accounting Estimates and JudgementsPreparingtheconsolidatedfinancialstatementsunderIndASrequiresmanagement to take decisions and make estimates and assumptions that may impact the value of revenues, costs, assets and liabilities and the related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.TheGroupmakeestimatesandassumptionsconcerningthefuture.Theresultingaccountingestimateswill,bydefinition,seldomequalthe related actual results. The estimates and assumptions that have a significant risk of causing amaterial adjustment to the carryingamountsof assets and liabilitieswithin the next financial year arediscussed below:a) Useful lives of vessels ManagementoftheGroupdecidedtheestimatedusefullivesof

vessels and respective depreciation. The accounting estimate isbasedontheexpectedwearsandtears.Wearsandtearscanbesignificantlydifferentfollowingrenovationeachtime.Whenthe useful lives differ from the original estimated useful lives, management will adjust the estimated useful lives accordingly. It is possible that the estimates made based on existing experience are different to the actual outcomes within the next financialperiodandcouldcauseamaterialadjustmenttothecarryingamountoffixedassets.

b) Residual Value Residualvalueisconsideredas5%oforiginalcostofVessel.

In case of other assets, the residual value, being negligible,




has been considered as nil. The residual value of vessels is reviewedeveryyearon31st March. On the basis of review of residualvalueofvesselsason31stMarch2020,2PSVand5AHTS vessels are estimated to be having scrap value less than 5%oforiginalcost.[ReferNoteNo.40]

c) Impairment of assets The recoverable amount of an asset or a cash-generating unit

is determined based on value-in-use calculations prepared on the basis of management’s assumptions and estimates

An impairment loss is recognised for the amount by which the asset’s or cash generating unit’s carrying amount exceeds its recoverable amount and is recognised in the Statement of ProfitandLoss.Recoverableamount ishigherofanasset’snetsellingpriceanditsvalueinuse.Valueinuseisthepresentvalueofestimatedfuturecashflowsexpectedtoarisefromthecontinuing use of an asset and from its disposal at the end of its useful life.

d) Defined benefit obligations Thepresentvalueofthedefinedbenefitobligationsdependson

a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for post employments plans include the discount rate. Any changes in these assumptions will impact the carrying amount of such obligations.

DiscountRateforthevaluationisdeterminedbyreferencetomarketyieldsatthebalancesheetdateonGovernmentBonds.This is the rate that is used to determine the present value ofestimatedfuturecashoutflowsexpectedtoberequiredtosettlethedefinedbenefitobligations

e) Provision Estimates of the amounts of provisions recognised are based

oncurrentlegalandconstructiverequirements,technologyandpricelevels.Becauseactualoutflowscandifferfromestimatesdue to changes in laws, regulations, public expectations, technology, prices and conditions, and can take place many years in the future, the carrying amounts of provisions are regularly reviewed and adjusted to take account of such changes.

f) Impairment of Trade Receivable Themethodology followed by SCI is the use of a provision

matrix as a practical expedient to measure expected credit losses on its portfolio of trade receivables. The model uses historical credit loss experience for trade receivables i.e. this model uses aging analysis of trade receivables as at the reporting date.

Considering the different services provided by our Groupand provisioning made segment wise in SCI, analysis andcomputation of expected credit loss for trade receivables is

done for different segments.g) Demurrage Vessel Demurrage income due as per contractual terms is

recognized.Aprovisiononestimatedbasis ismadetowardsdeduction from demurrage based on past experience of settlements.

h) Income Tax DuetoTonnagetaxregimeapplicableonthemainpartofthe

Group's activities, resulting in a lower income tax payablein the future, the amount of deferred tax to be recognised is limited. Considering the tonnage tax regime applicable toshipping activities, difference between taxable and book values of assets and liabilities are generally of permanent nature. This is due to the fact that the taxable result for tonnage tax eligible activities has no correlation with either carrying value or the generally applicable tax value of assets and liabilities. Asaconsequence,temporarydifferencesarelimitedtothosearising from other activities which are subject to normal Income tax provisions.

i) Leases Lease contracts contain extension or termination options.

Assessment of the exercise or non-exercise of such options impacts the value of right-of-use asset recognised. Such assessments are reviewed whenever a significant event orchange in circumstances occurs.

For thepurposeofcalculating thepresentvalue, the interestrate implicit in the lease or an incremental borrowing rate is usedasdiscountfactor.Wheretherateimplicitintheleaseisnot readily available, an incremental borrowing rate is applied. This incremental borrowing rate reflects the rate of interestthat the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset. Determination of the incremental borrowing rate requiresestimation.

Management has applied judgement and formed assumptions in relation to assessment of incremental borrowing rate, service components and extension options of leasing arrangements. Management has formed its judgements and assumptions based on historical experience, internal and external information and data available.


Note 3: Property, plant and equipment

Particulars Freehold Land Buildings

Ownership Flats &

Residential Buildings

Fleet* Fleet Drydock

Own-ership Con-tainer

Furni-ture,

Fittings & Equip-

ments

Moter Vehi-cles

Total

Net carrying amount (31 March 2018) 237,630 1,027 125 865,376 29,757 - 833 - 1,134,748Year ended 31 March 2019 Gross carrying amount Opening gross carrying amount(31March2018) 237,630 1,107 140 1,292,676 64,039 - 1,681 8 1,597,281

Additions - - - 21,128 25,158 - 267 10 46,563Assetsclassifiedasheldforsale(Note11) - - - (97) - - - - (97)Disposals - - - (82,088) (4,571) - - - (86,659)Transfer - - - - 781 - - - 781Closing gross carrying amount (31 March 2019) 237,630 1,107 140 1,231,619 85,407 - 1,948 18 1,557,869

Accumulated depreciation Opening accumulated depreciation(31March2018) - 80 15 427,300 34,282 - 848 8 462,533

Depreciationchargefortheyear - 28 5 47,787 17,689 - 250 1 65,760Assetsclassifiedasheldforsale(Note11) - - - (16) - - - - (16)Disposals - - - (77,994) (4,070) - - - (82,064)Closing accumulated depreciation (31 March 2019) - 108 20 397,077 47,901 - 1,098 9 446,213

Net carrying amount (31 March 2019) 237,630 999 120 834,542 37,506 - 850 9 1,111,656Year ended 31 March 2020 Gross carrying amount Opening gross carrying amount(31March2019) 237,630 1,107 140 1,231,619 85,407 - 1,948 18 1,557,869

Additions - 34 - 14,869 4,818 - 97 - 19,818Disposals - - - (56,440) (4,502) - (3) - (60,945)Transfer - - - - 763 - - - 763Closing gross carrying amount (31 March 2020) 237,630 1,141 140 1,190,048 86,486 - 2,042 18 1,517,505

Accumulated depreciation Openingaccumulateddepreciation(31March2019) - 108 20 397,077 47,901 - 1,098 9 446,213

Depreciationchargefortheyear - 29 5 48,032 18,477 - 180 1 66,724Disposals - - - (53,965) (4,228) - (3) - (58,196)Closing accumulated depreciation (31 March 2020) - 137 25 391,144 62,150 - 1,275 10 454,741

Net carrying amount (31 March 2020) 237,630 1,004 115 798,904 24,336 - 767 8 1,062,764

Notes:-(1)AdditionstoFleetinclude`11,875Lakhs(Previousyear`19,743lakhs)onaccountofcurrencyexchangedifferenceadjustedasperSignificantAccountingPolicyofforeigncurrencytranslation.

(2)BuildingsincludecostofShippingHouseatMumbai` 134lakhswhichisonleaseholdland(Previousyear`134lakhs)(3)OwnershipFlatsandResidentialBuildingsinclude:CostofsharesandbondsinCooperativeSocieties/Companyoffacevalue`0.73lakhs(Previousyear`0.73lakhs).

(4)*ReferNote35forFleetpledgedwithbanksforBorrowings.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(AllamountsinINRlakhs,unlessotherwisestated)




(5)Thereisnosignificantproperty,plantandequipmentason31stMarch2020whicharefullydepreciatedandarestillinuse.NOTE 4: CAPITAL WORK-IN-PROGRESS

Particulars As at

March 31, 2018

Incurred during

the year


As at March 31,

2019

Incurred during the

year


As at March 31,

2020 (A) Construction Work in Progress AssetunderConstructionexcludingadvance

781 763 781 763 284 763 284

(B) Construction Period Expenses a. Interest - - - - - - - b. Other directly attributable expenses - - - - - - - c.Exchangefluctuation - - - - - - - Total (A+B) 781 763 781 763 284 763 284

NOTE 5: INTANGIBLE ASSETSParticulars Computer Software Total

Net carrying amount (31 March 2018) 52 52 Year ended 31 March 2019 Gross carrying amount Openinggrosscarryingamount(31March2018) 1,336 1,336 Additions 287 287 Closing gross carrying amount (31 March 2019) 1,623 1,623 Accumulated amortisation Openingaccumulatedamortisation(31March2018) 1,284 1,284 Amortisation charge for the year 86 86 Closing accumulated amortisation (31 March 2019) 1,370 1,370 Net carrying amount (31 March 2019) 253 253 Year ended 31 March 2020 Gross carrying amount Openinggrosscarryingamount(31March2019) 1,623 1,623 Additions 2 2 Closing gross carrying amount (31 March 2020) 1,625 1,625 Accumulated amortisation Openingaccumulatedamortisation(31March2019) 1,370 1,370 Amortisation charge for the year 109 109 Closing accumulated amortisation (31 March 2020) 1,479 1,479 Net carrying amount (31 March 2020) 146 146

NOTE 6: RIGHT OF USE ASSET


Equipments


Year ended 31 March 2020 Gross carrying amount Openinggrosscarryingamount(1 April2019) 428 2,012 - - 200 2,640 Additions - 7 - 49 - 56 Closing gross carrying amount (31 March 2020) 428 2,019 - 49 200 2,696






Equipments


Accumulated depreciation Openingaccumulateddepreciation(1April2019) - - - - - - Depreciationchargefortheyear 42 177 - 5 69 293 Closing accumulated depreciation (31 March 2020) 42 177 - 5 69 293 Net carrying amount (31 March 2020) 386 1,842 - 44 131 2,403

Note 6(a): Investments accounted for using the equity method


31 March 2020 31 March 2019

No.of shares/Units

Rupees in lakhs

No.of shares/Units

Rupees in lakhs

Investment in equity instruments (fully paid-up)

Unquoted

In Joint Venture


2.33Euro 2908 11,646 2908 9,930


2.33Euro 2908 11,541 2908 9,909

OrdinarySharesof1USDeachfullypaidofIndiaLNGTransportCompany(No.3)Ltd.

1USD 2600 - 2600 -

OrdinarySharesof1USDeachfullypaidofIndiaLNGTransportCompany(No.4)PvtLtd.

1USD 11036558 6,286 11036558 7,732

Total (equity instruments) 29,473 27,571

(A) IndiaLNGTransportCompaniesNo.1&2Ltd.aretwojointventurecompaniespromotedbytheCorporationandthreeJapanesecompaniesViz.M/SMitsuiO.S.K.linesLtd.(MOL),M/SNipponYusenKabushikiKaishaLtd(NYKLines)andM/SKawasakiKisenKaishaLtd(KLine)alongwithM/SQatarShippingCompany(QShip),Qatar.SCIandMOLarethelargestshareholders,eachholding29.08%shareswhileNYKLine17.89%,KLine8.95%&QShipholds15%respectively.TheSharesheldbytheCorporationandotherpartners inthetwojointventureCompanieshavebeenpledgedagainst loansprovidedbylenderbankstothesecompanies. IndiaLNGTransportCompanyNo.1LtdownsandoperatesoneLNGCarrierDishaandIndiaLNGTransportCompanyNo.2LtdownsandoperatesoneLNGCarrierRaahi.

(B) IndiaLNGTransportCompanyNo.3Ltd. is the3rd jointventurecompanywhichownsandoperatesoneLNGCarrierAseem.Thecompany is promoted by the Corporation and three Japanese partners viz. MOL, NYK Lines, K Line alongwithM/S Qatar GasTransportCompany(QGTC),QatarandM/sPetronetLNGLimited(PLL),Indiawhoaretheotherpartners.SCIandMOLarethelargestshareholderswith26%shareeach,whileNYK,KLine,QGTCandPLLhold16.67%,8.33%,20%and3%respectively.TheSharesheldbytheCorporationandotherpartnersinthejointventurecompanyhavebeenpledgedagainstloansprovidedbylenderbankstothiscompany.

(C) IndiaLNGTransportCompany(No.4)Pvt.Ltd.isthe4thJointVentureCompanyispromotedbytheCorporationandthreeJapanesepartnersvizNYK,MOLandKLinealongwithPLL,India.SCI,NYKandPLLarethelargestshareholderswith26%shareeach,whileMOL andKline hold 15.67%and6.33% respectively. TheShares held by theCorporation andother partners in the joint venturecompanyhavebeenpledgedagainstloansprovidedbylenderbankstothiscompany.IndiaLNGTransportCompany(No.4)Pvt.LtdownsandoperatesoneLNGCarrierPrachi.



Note 7: Financial assetsNote 7 (a): Non-current investments


31 March 2020 31 March 2019No. of

shares/UnitsRupees in

lakhsNo. of

shares/UnitsRupees in

lakhsInvestment in equity instruments (fully paid-up) Unquoted(i) Investment carried at fair value through Profit or loss5,00,00,000(Prev.yr.5,00,00,000)OrdinarySharesof` 10eachfullypaidofSethusamudramCorp.Ltd.

`10 50000000 5,000 50000000 5,000

Less:Lossallowance 5,000 5,000 - -

3438EquitySharesof`20/-eachofScindiaSteamNavigationCompanyLtd.,fullypaid(`0.30lakhs;Prev.yr.`0.30lakhs)

`20 3438 - 3438 -

Less:Lossallowance - - - -

60,000EquitySharesof`10/-eachofWoodlandSpecialityHospitalLtd.(Prev.yr.60,000)

`10 60000 362 60000 350

Total (equity instruments) 362 350 Total non-current investments 362 350 Aggregate amount of unquoted investments 5,362 5,350 Aggregate amount of impairment in the value of investments 5,000 5,000 Investments carried at fair value through Profit and Loss 362 350

SethusamudramCorporationLtd.(SCL),aSpecialPurposeVehiclewasincorporatedon06.12.2004fordevelopingtheSethusamudramChannelProjectwithTuticorinPortTrust,EnnorePortLtd,VisakhapatnamPorttrust,ChennaiPortTrust,DredgingCorporationofIndiaLtd.,ShippingCorporationofIndiaLtd.andParadipPortTrustastheshareholders.SCIparticipatedwithaninvestmentof`5000lakhs(previousyear `5000lakhs).Thedredgingworkissuspendedfrom17.09.2009consequentuponthedirectionoftheHon'bleSupremeCourtofIndia.Asthereisnoprogressintheprojectsincethen,theManagementhadprovidedfordiminutiontowardstheinvestmentinFY2012-13.Note 7(b): Loans


Current Non-Current Current Non-Current

Considered good - Secured Loanstoemployees 181 1,896 347 1,562

Considered good - Unsecured Loanstorelatedparties* 610 23,512 22,034 - Less:Unabsorbedlosses - 3,556 - -

610 19,956 22,034 - SecurityDeposits - 622 - 474

Total loans 791 22,474 22,381 2,036 *Thisincludesamountof`609.70lakhsremittedbyIndiaLNGTransportCompany(No.4)Pvt.Ltd.on31stMarch2020whichcreditwasreceivedbySCIon01/04/2020.




Note 7(c): Other financial assets



Financial Assets carried at amortised costAdvances recoverable in cash-FromRelatedParties(ReferNoteno30fordetails)

InterestReceivable* 342 - 302 - Bankdepositswithmorethan12monthsmaturity-TermDeposits - - - -

Incomeaccruedondeposits/investments 1,380 - 2,986 - ClaimRecoverable 7,837 - 11,060 -

UnbilledRevenue(ContractAsset)(ReferNoteno33fordetails) 46,752 - 33,968 - Less:Provisionfordoubtfuldebts - - (650) -

46,752 - 33,318 - Others 1 7 1 7

Total other financial assets 56,312 7 47,667 7

*Thisincludesamountof`266.94lakhsand`8.36lakhsremittedbyIndiaLNGTransportCo.(No.3)Ltd.&IndiaLNGTransportCompany(No.4)Pvt.Ltd.respectivelyon31stMarch2020whichcreditswerereceivedbySCIon01/04/2020.

Note 7(d): Current investments


31 March 2020 31 March 2019

No. of Shares/Units

Rupees in lakhs

No. of Shares/Units

Rupees in lakhs

Investment carried at fair value through profit or loss

Unquoted

(a) Investment in equity instruments (fully paid-up)

295,029 (Prev. yr. 295,029) shares of 1 USD each fully paid of ISIMaritimeLtd. (Sharesare receivedasagift from Irano-HindShippingCo.Ltd.)

1USD 295,029 - 295,029 -

500(Prev.yr.500)sharesof`10eachfullypaidupofJaladhiShippingServices(India)Pvt.Ltd. (Sharesare receivedasgift from Irano-HindShippingCo.(P.J.S)*

`10 500 -

16 (Prev.yr.16) shares of USD 1 each fully paid up of BIISMaritime(SharesarereceivedasgiftfromIrano-HindShippingCo.(P.J.S)**

1USD 16 - 16 -

Total(Equity instruments) - - Total current investments - - Aggregateamountofquotedinvestmentsandmarketvaluethereof - - Aggregateamountofunquotedinvestments - - Aggregate amount of impairment in the value of investments - -

Investments carried at fair value through Profit and Loss - -

*JaladhiShippingServices(India)PvtLtdisdissolvedthereforesharesofthecompanyarenotshownfromFY2019-20.**Shares have pledged to banks against loans given by them




Note 7(e): Trade receivables


TradeReceivable* 82,672 85,515

Less:Allowancefordoubtfuldebts** 22,049 25,623

Total receivables 60,623 59,892

CurrentPortion 60,623 59,892

NonCurrentPortion - -

Break up of above details


Consideredgood-Secured 7,710 8,474

Consideredgood-Unsecured 54,766 53,311

TradeReceivableswhichhavesignificantincreaseinCreditRisk 19,138 20,124

Trade Receivables - credit impaired 1,058 3,606

Total 82,672 85,515

Allowance for doubtful debts 22,049 25,623

Total trade Receivables 60,623 59,892 *SignificantReceivablesfromrelatedparties(refernote30)**ReferNoteno.38forfurtherdetails

Note 7(f): Cash and cash equivalents


Balanceswithbanks

- in current accounts 21,830 5,995

- in deposits account with original maturity of less than three months 2,648 3,543

Total cash and cash equivalents 24,478 9,538

Note 7(g): Bank balances other than cash and cash equivalentsParticulars 31 March 2020 31 March 2019

MarginmoneyforBankGuarantee - 257OtherDepositswithbanks* 69,304 90,025Total Bank balances other than cash and cash equivalents 69,304 90,282

*ReferNote35forDepositspledgedwithbanksforBorrowings*FixeddepositincludesunutilisedfundsofFPOason31stMarch2020is`13385lakhs(ason31stMarch2019is`13385lakhs).

Note 8: Income Tax Assets(net)



IncomeTaxAssets(NetofProvision)* - 20,112 - 15,562

Income Tax Assets (Net) - 20,112 - 15,562

*ReferNoteno.29forfurtherdetails




Note 9: Other Assets


Current Non-Current Current Non-Current (a) Advances other than Capital Advances

Advances to employeesi)Secured,ConsideredGood - - - - ii)Unsecured,ConsideredGood 495 - 647 -

495 - 647 -Less:ProvisionforDoubtfulAdvances 205 - 100 -

290 - 547 -Advances to Others

i)Unsecured,ConsideredGood 8,952 - 9,892 - ii)Unsecured,ConsideredDoubtful 1,519 - 1,638 -

10,471 - 11,530 - Less:ProvisionforDoubtfulAdvances 1,519 1,638

8,952 - 9,892 - (b) Others - -

Excess-GratuityFund - 4,573 - 3,265Balanceswithstatutoryauthorities-CenvatCreditReceivables 95 - 95 - -ServicetaxpaidunderProtest - 3,122 - 3,100-GSTReceivable* 9,706 - 11,236 - -PredepositwithIncomeTaxDepartment - 974 - 974

9,801 4,096 11,331 4,074MATCreditOpening 1,134 - - Add:Creditduringtheyear - - 1,134 - Less:MATCreditAvailed - - - - Less:MATWrittenoff** 1,134

- - 1,134 - SubsidyforPassengerservice(Myanmmar)*** 467 - 467 - Less:ProvisionforDoubtfulAdvances 467 - 467 -

- - - - PrepaidExpenses 503 - 640 - Others 1 966 1 841Total other assets 19,547 9,635 23,545 8,180 *Asaprudentpractice,theGroupistakingGoodsandServiceTaxCredit intheElectronicCreditLedgeruponpaymentoftheliabilities.Hence,thereisadifferenceintheamountofcreditappearinginbooksofaccountsandtheElectronicCreditLedgeroftherespectivestates.Therefore,thebalanceinInputTaxCreditledgersason31stMarch,2020willbeprogressivelyreviewedandavailedfordischargeofGoodsandServiceTaxliabilitypayablebytheCorporation.**Asperthenewlyintroducedsection115BAAoftheAct,witheffectfromtheyearended31stMarch2020,alldomesticcompaniesshallhaveanoptiontopayincometax@22%subjecttoconditions.Theeffectivetaxrateforsuchcompaniesshallbe25.17%[tax@22%plussurcharge@10%and4%cess(ontaxandsurcharge)].Further,suchcompaniesoptingforreducedtaxrateu/s115BAAshallnotberequiredtopayMAT. Inviewoftheabove,asSCIhasoptedforlowertaxrateinFY2019-20,theMATcreditof`1134lakhshadtobewrittenoff.***ThispertainstoIndiaMyanmmarServicestartedon02.10.2014onthedirectionsofMinistryofShipping.TheservicewascompletedonNov2016.




Note 10: InventoriesParticulars 31 March 2020 31 March 2019

FuelOil* 13,138 15,979

Total inventories 13,138 15,979

*WritedowninventoriescarriedatNRVof`829.14lakhsason31.03.2020andrecognisedasexpense.

Note 11: Assets classified as held for saleParticulars 31 March 2020 31 March 2019

FleetandContainerheldforSale 90 95

Less:Impairmentlossallowance (90) (95)

- -

Investment held for Sale

1,00,000 (Prev.yr.1,00,000)sharesofRs10each fullypaidupofSAILSCIShippingCompanyPvt.Ltd.

7 7

IranoHindShippingCo.Ltd. 39 39

Less:Impairmentlossallowance (39) (39)

- -

AdvancetoIranoHindShippingCo.Ltd. 23 23

Less:ProvisionforDoubtfuladvances (23) (23)

- -

Total assets held for sale 7 7

a) The Government of India inmeeting of cabinet held on 02.04.2013 approved the proposal for dissolution of Irano Hind ShippingCompany(IHSC)andsplittingtheassets/liabilitiesofIHSCbetweenJointVenturepartnersshallbeundertaken.TheCompanyholds49%inIHSC,ajointventurecompanyincorporatedinIranonwhichsanctionhasbeenimposedbyUnitedNationsOrganisation(UN).SubstantiveeffortsaremadetoeventuallydissolvetheJVwhichisdependingongeopoliticalenvironmentandsanctionsimposedbyUNwhichiscompletelybeyondSCI'scontrol.SCIshallremaincommittedbythedecisionofcabinetandthereforeismakingalleffortsfordissolutionofJV.Further,GovernmentofIndiavideletterdated08thMay2018hasadvisedSCItogoaheadwiththedissolutionofIHSC. UnderIndAS,investmentinIranoHindhasbeenwrittenoffduringFY16-17toreflectitsfairvalue.

b) TheCompanyenteredintoajointventureagreementwithSteelAuthorityofIndiaLtd.withparticipationinterestintheratioof50:50andpromotedajointlycontrolledentitySAILSCIShippingPvt.Ltd.(SSSPL).Thesaidcompanywasincorporatedon19.05.2010withanauthorised share capital of `1000lakhs.TheCompanyhassubscribedequitycapitalof100000sharesof`10eachamountingto`10lakhs.Ithasbeendecidedbythejointventurepartnerstowindupthiscompany.UnderIndAS,investmentinSSSPLhasbeenwrittendownduringFY15-16toreflectitsfairvalue.

Non-recurring fair value measurementsInvestmentsclassifiedasheldforsaleduringthereportingperiodismeasuredatthelowerofitscarryingamountandfairvaluelesscoststosellatthetimeofthereclassification,resultingintherecognitionofawritedownof`42lakhs(Previousyear`3lakhs)asimpairmentlossinthestatementofprofitandlossinFY2016-17.Thefairvalueoftheinvestmentsweredeterminedusingthebookvalueapproach.Thisisalevel3measurementasperthefairvaluehierarchyassetoutinfairvaluemeasurementdisclosures(refernote37).




Note 12: Equity Share capital

Particulars As at 31 March 2020

As at 31 March 2019

Authorised

1,00,00,00,000[31March2019:1,00,00,00,000and1April2018:1,00,00,00,000]EquitySharesofINR10each

100,000 100,000

Issued, subscribed and fully paid up

46,57,99,010 [31 March 2019: 46,57,99,010 and 1 April 2018: 46,57,99,010] EquitySharesofINR10each

46,580 46,580

46,580 46,580

a) Reconciliation of number of shares

Particulars

As at 31 March 2020 As at 31 March 2019

Number of shares Amount Number of

shares Amount

Equity Shares :

Balanceasatthebeginningoftheyear 465,799,010 4,657,990,100 465,799,010 4,657,990,100

Add:Bonussharesissuedduringtheyear - - - -

Less:Sharesboughtbackduringtheyear - - - -

Balance as at the end of the year 465,799,010 4,657,990,100 465,799,010 4,657,990,100

b) Details of equity shares held by shareholders holding more than 5% of the aggregate shares


Number of shares

% of share holding

Number of shares

% of share holding

Equity shares

1.PresidentofIndia 296,942,977 63.75 296,942,977 63.75

2.LifeInsuranceCorporationofIndia 48,077,895 10.32 55,473,797 11.91

345,020,872 74.07 352,416,774 75.66

c) FortheperiodoffiveyearsimmediatelyprecedingthedateasatwhichtheBalanceSheetisprepared,noshareshavebeenissuedforconsiderationotherthancash,noshareshavebeenissuedasbonusshares&noshareshavebeenboughtback.

d) Rights/Preference/RestrictionattachedtoEquityShares:

TheGrouphasonlyoneclassofEquityshareshavingparvalueof ` 10.Eachshareholderofequitysharesisentitledtoonevotepershare.IntheeventofliquidationoftheGroup,theholderofequityshareswillbeentitledtoreceivetheremainingassetsoftheGroupafterdistributionofallpreferentialallotmentinproportiontotheirshareholding.ThedividendwheneverproposedbytheBoardofDirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting.

e) TheGroupdoesnothaveholdingcompany.

f) Therearenosharesreservedforissueunderoptionandcontract/commitmentforthesaleofshares/disinvestment.




Note 13: Other EquitySurplus


(I) Capitalreserve 15,205 15,205

(II) Securities premium 52,177 52,177

(III) Generalreserve 553,527 553,527

(IV) TonnageTaxReserve 2,100 -

(V) RetainedEarnings 85,043 52,033

Total surplus 708,052 672,942

(i) Capital reserve


Opening balance 15,205 15,205

Add: Transfer from Retained Earnings - -

Less:Transferredtogeneralreserve - -

Closing Balance 15,205 15,205

(ii) Securities premium account

Particulars As at 31 March 2020 As at 31 March 2019Opening balance 52,177 52,177Add:PremiumonsharesheldintrustforemployeesunderESOSScheme - - Add:Liabilitypertainingtoshareissueexpensesnolongerrequiredwrittenback - - Closing Balance 52,177 52,177

(iii) General reserve

Particulars As at 31 March 2020 As at 31 March 2019Opening balance 553,527 553,527Add:TransferfromTonnageTaxReserve(Utilised) - - Closing Balance 553,527 553,527

(iv) Tonnage Tax Reserve


Opening balance - -

Less:TransfertoTonnageTaxReserve(Utilised) - -

Add:TransferfromSurplusintheStatementofProfitorLoss 2,100 -

Closing Balance 2,100 -

(v) Retained Earnings

Particulars As at 31 March 2020 As at 31 March 2019Opening balance 52,033 57,735Add:Profit/(Loss)fortheyear 30,234 (12,198)Items of other comprehensive income recognised directly in retained earningsRemeasurementsgain/(loss)ofdefinedbenefitplans 1,462 564




Particulars As at 31 March 2020 As at 31 March 2019Shareofprofitsofassociatesandjointventures,netoftax 3,414 5,932Adjustments:Less:TonnageTaxReserve 2,100 - Closing Balance 85,043 52,033 Retainedearnings includeaccumulatedOCI{Remeasurementsgain/(loss)ofdefinedbenefitplans}of` 2486.28 lakhs (Previousyear`1024.28lakhs)Note 13(a): Other Surplus

Particulars Cash Flow Hedging Reserve

Foreign currency translation reserve Total other reserves

As at 1 April 2018 (1,296) (402) (1,698)ShareofOCIofassociatesandjointventures,netoftax (790) - (790)Currencytranslationdifferences - 1,289 1,289As at 31 March 2019 (2,086) 887 (1,199)ShareofOCIofassociatesandjointventures,netoftax (6,603) - (6,603)Currencytranslationdifferences - 1,536 1,536As at 31 March 2020 (8,689) 2,423 (6,266)

Nature and Purpose of other reservesCapital Reserve:TheamountofsalesproceedsinexcessoforiginalcostofshipssoldbytheGroup.Thisisnotavailablefordistributionofdividend but can be utilised for issuing bonus shares.Securities Premium:TheamountreceivedinexcessoffacevalueoftheequitysharesisrecognisedinSharePremiumReserve.Thisisnotavailable for distribution of dividend but can be utilised for issuing bonus shares.General Reserve:GeneralReserverepresentsappropriationofretainedearningsandareavailablefordistributiontoshareholders.Tonnage Tax Reserve/Tonnage Tax Reserve (Utilised): This reserve isastatutory reserveasper requirementofsection115VTof theIncomeTaxAct,1961forthepurposeofcomplyingwiththeconditionsforapplicabilityoftonnagetaxschemeRetained Earnings:RetainedEarnings represents surplus/accumulated earningsof theCorporation and are available for distribution toshareholders.Other comprehensive income (OCI):OCIcomprisesitemsof incomeandexpenses(includingreclassificationadjustments)thatarenotrecognisedinprofitorlossasrequiredorpermittedbyIndianAccountingStandards.ThecomponentsofOCIinclude:re-measurementsofdefinedbenefitplans,gainsandlossesarisingfromtranslatingthefinancialstatementsofaforeignoperationetc.

Note 14(a): Long-term borrowings


Non Current Current* Non Current Current*Secured

Term Loans:Rupee loans from banks A - - - - Foreigncurrencyloansfrombanks B 111,198 107,739 200,788 95,580

Total C 111,198 107,739 200,788 95,580 Unsecured

Term Loans:Rupee loans from banks A - - - - Foreigncurrencyloansfrombanks B 56,540 - 51,878 20,751

Total C 56,540 - 51,878 20,751 Long-term borrowings 167,738 107,739 252,666 116,331




Maturity Profile

1-2years 2-3years 3-4years Beyond4years

SecuredLoans 38,507 19,560 17,943 35,188

1-2years 2-3years 3-4years Beyond4years

UnsecuredLoans 6,058 8,077 8,077 34,328

*RepresentscurrentmaturitiesofLongtermborrowingsincludedin"FinancialOtherCurrentLiabilitiesThecarryingamountsoffinancialandnon-financialassetspledgedassecurityaredisclosedinnote35.

Note 14(b): Other financial liabilities


Current Non Current Current Non-Current

LeaseLiabilities 2,395 209 - -

Total Lease Liabilities 2,395 209 - -

Note 14(c): Other financial liabilities

Particulars

31 March 2020 31 March 2019

Current Non Current Current Non-

Current

Financial Liablilities at amortised cost

SecurityDeposits 1,013 25 861 41

Currentmaturitiesoflong-termdebt 107,739 - 116,331 -

Interest accrued but not due on borrowings 2,511 - 3,939 -

UnpaidDividend - - - -

Others

OtherDepositspayable 252 - 269 -

EmployeerelatedLiabilities 9,197 - 8,618 -

Others* 8,684 - 1,601 -

Total other financial liabilities 129,396 25 131,619 41

*Includesbookoverdraftof`7907lakhs(Previousyear`729lakhs)forwhichreconciliationhasbeendone.

Note 14(d): Current borrowings


Unsecured

FromBanksrepayableondemand

Rupee loans from banks - -

Foreigncurrencyloansfrombanks 198,642 158,748

Total current borrowings 198,642 158,748




StatementofchangesinliabilitiesforwhichcashflowshavebeenclassifiedasFinancingActivities

ParticularsLiabilities from Financing Activities

Long Term borrowings

Short Term borrowings Total

Net debt as at 1st April 2019 372,936 158,748 531,684 Cashflows (116,325) 24,360 (91,965)ForeignExchangeadjustments 22,805 15,534 38,339Interest expense 14,492 6,197 20,689InterestPaid (15,920) (6,197) (22,117)

Net debt as at 31st March 2020 277,988 198,642 476,630

Note 14(e): Trade payables

Particulars 31 March 2020 31 March 2019Trade payables (a) total outstanding dues of micro enterprises and small enterprises; and 629 545(b)totaloutstandingduesofcreditorsotherthanmicroenterprisesandsmallenterprises* 94,931 126,725Total trade payables 95,560 127,270 *SignificantPayablefromrelatedparties(refernote30)Disclosure requirement under MSMED Act, 2006

Particulars 31 March 2020 31 March 2019(a) (i) the principal amount remaining unpaid to any supplier at the end of each accounting year; 629 545

(ii)the interest due thereon (to be shown separately) remaining unpaid to any supplier at the end of each accounting year;

3 -

(b)theamountof interestpaidbythebuyerintermsofsection16oftheMicro,SmallandMediumEnterprisesDevelopmentAct,2006(27of2006),alongwiththeamountofthepaymentmadetothesupplier beyond the appointed day during each accounting year;

- -

(c) the amount of interest due and payable for the period of delay in making payment (which has been paidbutbeyondtheappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedundertheMicro,SmallandMediumEnterprisesDevelopmentAct,2006;

- -

(d) the amount of interest accrued and remaining unpaid at the end of each accounting year; and 3 -

(e) the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowanceofadeductibleexpenditureundersection23oftheMicro,SmallandMediumEnterprisesDevelopmentAct,2006.

3 -

TheinformationhasbeengiveninrespectofsuchvendorstotheextenttheycouldbeidentifiedasMicro,SmallandMediumenterprisesonthebasisofinformationavailablewiththeGroup.

Note 15: Provisions


Current Non-Current Current Non-CurrentEmployee Benefit ObligationsProvisionforleaveencashment 263 5,159 360 5,483PostRetirementMedicalScheme 217 1,338 239 873

480 6,497 599 6,356





Current Non-Current Current Non-CurrentOther ProvisionsInsurance&cargoclaims* 527 - 531 -

527 - 531 - Total 1,007 6,497 1,130 6,356

Short term provision As at 31st March 2019

Provided during the year

Utilised during the year

Amount reversed

As at 31st March 2020

Other Provisions

Insurance&cargoclaims* 531 122 126 - 527

531 122 126 - 527

*Representsprovisionofamountpayable/bornebytheGroupagainstInsurance&cargoclaims

Note 16: Deferred Tax LiabilitiesParticulars 31 March 2020 31 March 2019

Deferredtax-upwardvaluationofPPE 7,450 9,073

Deferredtax-upwardvaluationofFinancialAsset 81 80

Deferred Tax Liabilities(Net) 7,531 9,153

Note 17: Other current liabilities


Current Non Current Current Non-Current

DeferredTradeReceivable(ContractLiability)(ReferNoteno33fordetails) 1,238 - 688 -

AdvancesandDeposits 7,967 - 5,466 -

Others

EmployeeRelatedLiabilities - - - -

Statutory dues 2,896 - 1,639 -

OthersCurrentLiabilities 47 - 42 -

SubsidyforBangladesh-Myanmmar&Srilanka* - - 2,024 -

Total other current liabilities 12,148 - 9,859 -

*Ministry of Shipping provided subsidy of `19croreinthefinancialyear2017-18toSCIforrunningadirectshippingservicefromIndiatoBangladesh-MyanmarandSrilanka-Maldives.ActionforcharteringavesselforrunningtheservicewasdeferredsinceSCIawaiteddirectionfromMinistryofShippingtostarttheService.DuringFY2019-20,MinistryofShippingdirectedSCItorefundthesubsidyamount.Accordingly subsidy amount and interest earned from date of receipt of funds till date of refund was paid to Ministry of Shipping. Total amount refundedbySCIincludinginterestis`20.53Crores.

Note 18: Liabilities directly associated with assets classified as held for saleParticulars 31 March 2020 31 March 2019

Othercurrentliabilities* 22,346 20,504

Total Liabilities of disposal held for sale 22,346 20,504 *ReferNoteno.11(a)forfurtherdetails




Note 19: Revenue from operationsParticulars 31 March 2020 31 March 2019

Freight 318,540 286,639CharterHire 82,445 65,310Demurrage 17,126 14,508ContractRevenue:

Coreshippingactivities 102 376Incidental activities 9,170 6,441Reimbursement of Expenses 10,639 10,298

Total 438,022 383,572

Note 20: Other Operating RevenueParticulars 31 March 2020 31 March 2019

Training&Consultancyfee 2,512 1,975

SundryReceipts(Core) 327 1

Sundry Receipts (Incidental) 65 43

RecoveryofInsurance&PIClaims 1,618 1,694

Total 4,522 3,713

Note 21: Other IncomeParticulars 31 March 2020 31 March 2019

Interest on financial assets carried at amortised costa)FixedDepositswithBanks 5,755 6,340b)LoanstoEmployees 218 165c)LoanstoJointVenture(ReferNoteno.30) 1,365 1,662d) Others 780 879

DividendFromMutualFund 185 287Other non operating incomeProfitonSaleofFixedAssetsa)SaleofShips(Net) 9,314 11,392b)SaleofOtherFixedAssets 22 3

Profitonsaleofinvestments 226 - Profitonsaleofbunker 153 457GainorLossonFairvaluationofinvestment 12 232ExcessProvisions&UnclaimedCreditWrittenBack 6,212 1,778Other Miscellaneous Income 53 29

Total 24,295 23,224

Note 22: Cost of services renderedParticulars 31 March 2020 31 March 2019

Direct Operating Expenses :AgencyFees 1,164 1,281Brokerage 1,281 2,286Commission 236 379




Particulars 31 March 2020 31 March 2019Stevedoring,Dunnage,CargoExpensesEtc.&SlotExpensesOnJointSectorContainerServices(Net)

17,198 16,906

Marine,LightAndCanalDues 42,224 42,543FuelOil(Net) 112,125 110,212WaterCharges 347 440 Manning expenses 143 1,028Honorarium&Trainingexpenses 434 603

Hire Of Chartered Steamers 42,300 35,598Other Indirect Operating Expenses TransferAndRepatriationAndOtherBenefits 218 170Stores&Spares* 17,952 18,714 Sundry Steamer Expenses 2,615 3,526 Repairs And Maintenance and Survey Expenses 9,701 13,678InsuranceAndProtection,IndemnityClubFees&InsuranceFranchise 7,887 5,932ProvisionforOffHireEtc. - -

Total 255,825 253,296

*IncludesamountofRsNil(PreviousYear`803lakhs)towardsServedfromIndiaScheme(SFIS).UnderSFIS,Scripsreceivedareutilisedagainstthecustomdutyliability&SFISschemebeingGovernmentGrant,isaccountedasstatedintheAccountingpolicyonGovernmentGrant.ThevalidityofSFISlicenseswithSCIisexpiredinApr'19.SCIhaveappliedforextensionofthevaliditydatebutsamenotacceptedsofar.AccordinglySCIcouldnotuseanyofthecreditinFY2019-20.HencethevalueforFY19-20isNIL.

Note 23: Employee benefit expenseParticulars 31 March 2020 31 March 2019

A) Floating staffWages,BonusandOtherExpensesonFloatingStaff 25,736 25,319Gratuity* 783 557 ContributiontoProvidentFund 312 301StaffWelfareExpenses 284 258

B) Shore StaffSalaries,Wages,Bonusetc 17,812 15,834Gratuity* 102 45ContributiontoProvidentFunds 1,086 1,067ContributiontoPension 1,096 1,026StaffWelfareExpenses** 144 110

C) Remuneration to Directors 299 240Total 47,654 44,757

*ReferNoteno.31forfurtherdetails.**Includesamountof̀ 129.03lakhs(PreviousYear̀ 94.07lakhs)amortisationofdeferredemployeecostasemployeeloansaremeasuredat amortised cost.

Note 24: Finance costsParticulars 31 March 2020 31 March 2019

Interest on:- Rupee loans 28 20-Foreigncurrencyloans 19,567 23,323

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AllamountsinINRlakhs,unlessotherwisestated)



Particulars 31 March 2020 31 March 2019-LeaseLiability 249 - - Others - -

Exchange differences regarded as an adjustment to borrowing costs 15,476 11,319Otherborrowingcosts* 1,093 1,243Total 36,413 35,905 *Includesamountof`995.92lakhs(PreviousYear`1087.18lakhs)amortisationofupfrontfeeforborrowingstakenoverthetenureoftheborrowing by applying the effective interest rate method.

Note 25: Depreciation and amortisation expenseParticulars 31 March 2020 31 March 2019

DepreciationonProperty,plantandequipment 66,725 65,760DepreciationonRightofUseAssets* 293 -

Amortisation of Intangible Assets 109 86

Total 67,127 65,846

*ReferNoteno.6forfurtherdetails.

Note 26: Other expensesParticulars 31 March 2020 31 March 2019

Power&Fuel 441 379

Rent 7 267

Repairs and Maintenance

-Building 514 543

- Others 1,345 1,433

Insurance, Rates and Taxes 187 87

Auditors'Remuneration(DetailinNoteno26(a)) 61 68

EstablishmentCharges 2,165 2,215

Advertisement&Publicity 60 90

Legal&professional 183 385

Postage,TelephoneTelegram&Telex 64 126

Printing&stationery 104 113

Training,Seminar&ConferenceFee 23 23

Travel&Conveyance 361 578

Directors'SittingFees 15 21

Directors'TravelExpenses 22 32

Debts/Advanceswrittenoff 2,782 986

InterestandPenalties 4 4

BankCharges 255 263

ServicetaxineligibleforCENVAT 48 -

GSTineligibleITC 485 61

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AllamountsinINRlakhs,unlessotherwisestated)




CSRExpenditure(DetailinNoteno26(b)) 336 582

NetlossonForeignCurrencyTransaction/Translation 16,180 6,403

Provisions

ProvisionforDoubtfulDebtsandAdvances (839) 3,195

ForeignTaxation 30 49



Total 25,070 18,189

Note 26(a): Details of payments to auditorsParticulars 31 March 2020 31 March 2019

Payment to auditors

Statutory auditors

a) Audit fees 32 32

b)CertificationWork 27 32

c)Travelling&OutofPocketExpenses 2 4

Total 61 68

Note 26(b): Corporate social responsibility expenditure


(i)GrossamountrequiredtobespentbytheCompanyduringtheyear 88 420

(ii) Amount spent and paid during the year on

(a)Construction/acquisitionofanyasset 109 211

(b) On purpose other than (a) above 227 371

Total 336 582

Note 27: Earnings per shareParticulars 31 March 2020 31 March 2019

(a) Basic and diluted earnings per share

Profitattributabletotheequityholdersofthecompany(A) 33,648 (6,266)

(b) Weighted average number of shares used as the denominator

Weighted average number of equity shares used as the denominator incalculatingbasicanddilutedearningspershare(B)

465,799,010 465,799,010

BasicandDilutedearningspershareattributabletotheequityholdersofthegroup(A/B)(in`)

7.22 (1.35)




NOTE 28: CONTINGENT LIABILITIES AND COMMITMENTS(a) Contingent Liabilities


I. Claims against the company not acknowledged as debts

a)StateGovernments/LocalAuthorities 2,001 1,835

b)CPSEs 1,437 1,402

c)CentralGovernmentDepartments*

a)IncomeTax&SalesTax 27,836 25,080

b) Service Tax @ 157,939 268,101

c) Others - -

d)Others# 7,154 21,238

II. Guarantees given by the Banks

On behalf of the company 5,571 3,047

OnbehalfofJointVenturetotheextentofthecompany'sshare 5,399 4,954

III. Undertaking cum Indemnity given by Company 6,516 6,516

IV. Bonds/Undertakings given by the Company to Customs Authorities 38,187 34,838

V. Corporate Guarantees/Undertakings

a)InrespectofJointventures Nil Nil

b) Others 3,684 4,432

(b) Contingent Assets

Particulars As at 31 March 2020 As at 31 March 2019I. Claims by the Company not acknowledged as asseta)StateGovernments/LocalAuthorities Nil Nilb)CPSEs Nil Nilc)CentralGovernmentDepartments 150 150d) Others 358 545

(c) Commitments


I.Estimated amount of contracts remaining unexecuted on capital account (net of advances paid) and not provided for

4457 3,837

II. Uncalledliabilityonsharesandotherinvestmentspartlypaid Nil NilIII. OtherCommitmentsintheformofequitysharewithJV's Nil Nil*ThecontingentLiabilityincludescasesdecidedinfavourofSCIamountingto`14800lakhs.Thereafter,departmenthavegoneinappeal.@ Includes a sum of `71,282lakhsasinterest(previousyear`105,137lakhs).



# Details of other Cases


As at 31st March,


As at 31st March,

2020

1

SVenkiteswaran-ChokhaniIntlLtdNew

Delhi-drydockofDadabhaiNaoroji

MT. D.B. Naoroji stemmed for drydock repairs with M/s.Chokhani International,ChennaiduringJuly1997withquotedrepair period of 45 days and stemmed cost of INR 792.16lakhs. The shipyard took total of 229 days i.e. 184 days inexcess of quoted period. Since there were additional repairswhich cropped up, after opening of machineries during drydock period,SCIallowedadditional66daysi.e.fromSCIsidetotalrepairperiodistobe111days.YardsubmittedinvoicesforINR1736.56lakhsinMarch1998.Yardunwillingtoacceptdelayincompletion of repairs and relevant penalty due to delayed repair completion.

4,864 174 - 5,038

2Mercuriav/sSCIMTMaharshiParashruam

M.T Maharshi Parashuram was fixed on voyage charter onaccount of Mercuria Energy Trading Pte Ltd via C/P dated20.01.2012.VesselloadedcargoofFuelOil(380CST).Vesselcompletedcargoloadingon12thFebruary2012andsailedfordischargeporton13thFebruary2012.DuringloadingatVadinar(Essar Terminal), it was observed that main cargo leaked into slop tank (Starboard). The reason for the same as advised by MasterwasduetofailureofmechanicalValvebetweenCargoTanks and Slops Tank (Starboard).

35 3 - 38

3

M.V.VishvaShakti(1995caseM/s.S.S.JainvsSCILtd

defendant)

M.V.VishvaShakti-refundofEMDclaimanthasrequestedofEMDof`7lakhswithinterestat24%p.a.whichwasforfeitedbySCIfornotfulfillingtheterms&conditionsofthetender.

24 1 - 25

4

M.V.SamratAshok(1997caseM/s.ChaudharyIndvsSCILtd

defendant)

M.V.SamratAshok-refundofEMD.TheclaimanthadrequestedforrefundoftheirEMDof`10lakhswithinterestthereon@16%p.a or at the highest rate on deposits by aNationalisedbank.TheEMDwasforfeitedbySCIfornotfulfillingtheterms&conditionsoftender.

32 1 - 33

5

M.T.CVRaman(2013case

SYMCOMIMPEXclaimant directed SCItoshowcause as to

why the loss to Symcom leviable onSCIshouldnotberecovered/

demanded)

M.T.CVRAMANshowcausenoticefromSYMCOMIPEXPVT.LTD.MUMBAITheclaimanthaddirectedSCItoshowcausesastowhytheLOSSTOSYMCOMleviableontheSCIshouldnotberecovered/demanded.

80 - - 80





As at 31st March,


As at 31st March,

2020

6

Amsterdam Bridge(Explosionof cargo in ship)

Kline

AmsterdamBridge(Explosionofcargoinship)Kline 14,526 - 14,526 -

7M/SNKTraders(2002case)

MoneyclaimagainstSCIfornon-paymentofparty'sbillsof` 29,91,871/-andthesecuritydepositof` 1,25,000/

84 4 - 88

8

RabirunVinimayvsA.L.Logistics&Ors.(SCI

respondent no. 2)2015case

M/s. Rabirun Vinimay pvt ltd, had imported used plant &machineryfromUKtoHaldiaascontainerizedshipments(SOC)throughseveralshippinglinesinNov2011.Howeverconsigneecould not take delivery of cargo immediately as they could not obtain necessary clearance / permission from customs.Since thecontainersareSOCboxes,SCI's responsibilitywasonly till landing of the containers at Haldia. A legal notice dated 09.04.2015fromthelawyersofM/sRabirunVinimaypvt.ltdinthis context.

100 - - 100

9

BLTransport&BLShippingagencies&UnitedIndiaIns

Coltd

Towards Repair cost of pay loader used for loading of barytee powder

32 16 - 48

10Mr.JosephArputhanath

This case was closed on 30.11.2009 as the petition wasdisposedbytheHighCourt,Chennaion30.11.2009directingthePetitioner(pleasefillupname&relationtoSCI)toapproachtheNationalMaritimeBoard(NMB).AsdirectedbytheHon'bleHigh Court, Petitioner has filed a petition against NMB–RehabilitationCentre,whichhasdeclaredthatthepetitionerisentitled to compensation amounting to ` 1,25,000/-.

10 - - 10

11S. Rajasekaran ERR-2CDCNO

SeamanS.RajasekaransignedArticleon20.09.1996andwasdeclaredpermanentlyunfitforseaserviceon20.06.1997afterbeing diagnosed for DiabetesMellituswith Parkinson by SCIMedicalofficer.TheSeamanhadchallengedabovedecisionandfiledaWritPetition20941/2001beforeMadrasHighCourt.

22 - - 22

12GopalSelvamani-vs-SCI

Shri Gopal Selvamani, ERPO-III was relieved of service afterhis sickness and diagnosis of cancerous tumor by our Medical Officer,whichwas challenged by him and Commissioner forWorkman Compensation-II had awarded compensation of ` 55,251/-,

1 - - 1

13

Mrs.Periyammalw/olateNarayanaMuthuraja2.MallikaD/OlateNarayan

Narayana Muthuraja had travelled in SCI's passenger vesselm.v. Chidambaram, which arrived in Chennai on or about12.02.1985.VesselmetwithfireaccidentandintheaccidentNarayana Muthuraja died and SCI paid compensation of` 10,000/- to the passenger's family on 29.04.1985 onhumanitarian grounds. Later Mrs. Periammal, W/o NarayanaMuthurajaanddaughterMallikafiledaCivilSuit1250of1988claiming a sum of ` 1,30,000/-asdeathcompensation.

10 - - 10






As at 31st March,


As at 31st March,

2020

14CanteenWorkersLalBavta

LalBavtaCase(absorptionofcanteencontractworker) 625 95 - 720

15Mr.AbdulAzizIbrahim Makani

"Mr Abdul had claim against the insurance company andSCI. And court had ordered that 50% should be given byinsurance company and 50% by SCI the claim amount. Insurance company had paid the full amount to Mr Abdul and they had to claim 50 percent from SCI. Buttilldateinsurancecompanyhasnotaskedaboutthemoney."

1 - - 1

16Kolkata

TechnicalFleetPersonnel

CompensationrelatedFleetpersonnelcases 137 62 - 199

17 OSV CompensationcasesofOSVfleetpersonnel 266 - - 266

18Disabilitycases-Officers

DisabilitycompensationofFleetpersonnel(Officer)cases. 43 - 20 23

19 Disability-Crew DisabilitycompensationofFleetpersonnel(Crew)cases. 40 14 - 5420 DeathCases DeathcompensationcasesofFleetpersonnel 24 86 - 11021 Misc Fleetpersonnelmiscellaneouscases 263 - 23 240

22PFandGratuity

CasesCompensationcasesofwages,PF&Gratuity - 29 - 29

23 Manning agent (Wage/PF/Gratuity)

Manningagentcasesonwages,PF&Gratuity 19 - - 19

Total 21,238 485 14,569 7,154 (a) TheCompany’spendinglitigationscompriseclaimsagainsttheCompanyandproceedingspendingwithTax/Statutory/Government

Authorities.Afterreviewofallitspendinglitigationsandproceedings,theCompanyhasmadeadequateprovisions,whereverrequiredanddisclosedthecontingentliabilities,whereverapplicable,initsfinancialstatements.TheCompanydoesnotexpecttheoutcomeoftheseproceedingstohaveamaterialimpactonitsfinancialposition.Futurecashoutflowsinrespectoftheabovearedeterminableonlyonreceiptofjudgments/decisionspendingwithvariousforums/authorities.

(b) Acontingentassetisapossibleassetthatarisesfrompasteventsandwhoseexistencewillbeconfirmedonlybytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheentity.Duringthenormalcourseofbusiness,severalunresolvedclaimsarecurrentlyoutstanding.Theinflowofeconomicbenefits,inrespectofsuchclaimscannotbemeasureddue to uncertainties that surround the related events and circumstances.

(c) The company issued bonds of ̀ 38,187lakhstocustomauthorities[a(IV)]ismainlyfordutyfreemovementofImport/Exportcontainers.The movement of contingent liabilities from [I (a)] to [(I (d)] under various categories is tabulated below.

Categories As at 31st March, 2019 Addition Deletion As at

31st March, 2020a)StateGovernments/LocalAuthorities 1,835 166 - 2,001

b)CPSEs 1,402 35 - 1,437c)CentralGovernmentDepartmentsa)IncomeTax&SalesTax 25,080 4,332 1,576 27,836b) Service Tax 268,101 7,842 118,004 157,939c) Others - - - -

d) Others 21,238 485 14,569 7,154Total 317,656 12,860 134,149 196,367




Note 29: Income taxesThemajorcomponentsofincometaxexpensefortheyearsended31March2020and31March2019are:(a) Deferred Tax


Deferred tax relates to the following:UpwardfairvaluationofPPE 7,450 9,073

Deferredtax-upwardvaluationofFinancialAsset 81 80

Net Deferred Tax Liabilities 7,531 9,153

(b) Movement in deferred tax liabilities


Opening balance as of April 1 9,153 10,395

Taxincome/(expense)duringtheperiodrecognisedinprofitorloss (1,622) (1,242)

Closing balance as at March 31 7,531 9,153

(c) Income tax recognised in profit or loss


Income tax expense

Currenttax

Currenttaxonprofitsfortheyear 4,850 7,090

Tax pertaining to earlier years 154 -

Deferredtax (1,622) (1,242)

MATCreditEntitlement 1,134 (1,134)

Income tax expense 4,516 4,714

(d) The reconciliation of tax expense and the accounting profit multiplied by tax rate :Particulars 31 March 2020 31 March 2019

Profitbeforeincometaxexpense 34,750 (7,484)Less:Incomesubjecttotonnagetaxation 8,849 (33,239)Profitbeforetax,adjusted 25,901 25,755 Tax computed using applicable statutory tax rate 6,520 5,550Tax effect of amounts which are not deductible(taxable) in calculating taxable income:

Impact of tonnage tax scheme 723 - Differenceintaxgainsandbookgains(Capitalgains) (2,346) - Tax pertaining to earlier years 154 - Differenceona/cofIndASadoption - 1,595Exemptincome-Dividendfrommutualfunds (47) (62)MAT credit adjusted 1,134 (1,134)ReversalofDeferredTaxLiability (1,622) (1,242)Others - 7

Income tax expense 4,516 4,714




Basis of applicable tax rate :

NormalTaxrate 22% 18.50%Surcharge 10% 12%HealthandEducationCess 4% 4%

Applicable Tax rate 25.17% 21.55%

TheTaxationLaws(Amendment)Act,2019hasamendedtheIncomeTaxAct,1961,andtheFinance(No.2)Act,2019byinsertingsection115BAAwhichprovidesdomesticcompanieswithanoptiontooptforlowertaxrates,providedtheydonotclaimcertaindeductions.TheCompanyhaselectedtoexercisetheoptionandhasaccordinglyrecognisedProvisionforIncomeTaxfortheyearendedMarch31,2020,reversedtheaccumulatedMATcreditandre-measuredtheopeningbalanceofDeferredTaxLiabilityasatApril01,2019atthelowertax rate prescribed in the said section.This change has reduced provision for taxation by `1883lakhsanddeferredtaxliabilityby`137lakhsfortheyearendedMarch31,2020.Consequently,theCompanyhadalsoreversedaccumulatedMATcredit` 1134lakhs.Theoverall impactofthischangeduringtheyearended31stMarch2020hasbeenrecognisedinthestatementofprofitandloss.(e) Current tax liabilities


Opening balance - - Add:Currenttaxpayablefortheyear 4,850 7,090Less:Taxespaid (4,850) (7,090)

Closing balance - -

Note 30: Related party transactions(a) Control GovernmentofIndiaenterprisescontrolledbyCentralGovernment(b) Subsidiaries Inland&CoastalShippingLtdisthe100percentSubsidiary.(c) Joint Venture Companies 1. IranoHindShippingCo.Ltd. 2. IndiaLNGTransportCo.(No.1)Ltd. 3. IndiaLNGTransportCo.(No.2)Ltd. 4. IndiaLNGTransportCo.(No.3)Ltd. 5. IndiaLNGTransportCo.(No.4)PvtLtd. 6. SAILSCIShippingPvt.Ltd.(d) Key Management Personnel Executive Director 1. CaptAnoopKumarSharma(ceasedtobeontheBoardofSCIw.e.f11.09.2019) 2. Smt.H.K.Joshi{CMDw.e.f.12.09.2019andDirector(Finance)} 3. ShriS.V.Kher(ceasedtobeontheboardofSCIw.e.f.30.09.2019) 4. Shri.RajeshSood 5. Smt. Sangeeta Sharma 6. ShriSurinderPalSinghJaggi 7. ShriAtulUbale[joinedSCIBoardw.e.f05.12.2019] 8. ShriDipankarHaldar




Chief Financial Officer 1. ShriLCSerrao(w.e.f05.02.2020) Non Executive Director 1. ShriShambhuSingh(ceasedtobeontheBoardofSCIw.e.f28.01.2020) 2. ShriSanjayKumar(joinedSCIBoardw.e.f29.01.2020) 3. ShriSatinderPalSingh 4. ShriArunBalakrishnan(reapppointedontheBoardofSCIw.e.f21.03.2019andcompletedhistenureon20.03.2020) 5. ShriGautamSinha 6. ShriP.Kanagasabapathi 7. ShriRajKishoreTewari 8. ShriMavjiBhikhabhaiSorathia 9. ShriVijayTulshiramjiJadhao 10. ShriPramodKumarPanda(joinedSCIBoardw.e.f.18.10.2019)Key management personnel compensation

Name

Short-term employee benefits

Post-employment benefits

Long-term employee benefits

Employee share-based payment

31 March 2020

31 March 2019

31 March 2020

31 March 2019

31 March 2020

31 March 2019

31 March 2020

31 March 2019

1.ShriA.K.Sharma 26 36 11 4 - - - -

2.SmtH.K.Joshi 48 37 9 8 - - - -

3.ShriS.V.Kher 43 40 4 7 - - - -

4.ShriRajeshSood 44 31 7 6 - - - -

5. Smt. Sangeeta Sharma 47 32 7 7 - - - -

6.ShriSurinderPalSinghJaggi 37 31 7 6 - - - -

7.ShriAtulUbale 13 - 3 - - - - -

8.ShriDipankarHaldar 39 39 8 7 - - - -

9.ShriL.C.Serrao 6 - 1 - - - - -

Total 303 246 57 45 - - - -

Note:-AstheliabilitiesforgratuityandleaveencashmentareprovidedonactuarialbasisforthecompanyasawholetheamountspertainingtoKeymanagementpersonnelcompensationarenotincludedintheabovetable.Other transactions with related partiesThe following transactions occurred with related parties:

Nature of Transactions 31 March 2020 31 March 2019SittingFees 14.8 21.2

(e) Transactions with JV's and Outstanding Balances are as follows:

Nature of Transactions 31 March 2020 31 March 20191)InterestIncomeduringtheyear 1,365 1,3522)ExpensesReimbursedduringtheyear 50 333)Management&Accountingfeesearnedduringtheyear 1,917 1,8394)Guaranteefeesreceivedduringtheyear 41 415) Investment made during the year - - 6)Loansrealisedduringtheyear 991 2,8117) Interest amount compounded in to principal during the year 1,094 33




Outstanding Balances 31 March 2020 31 March 20191)Investments 7,408 7,4082)LoanBalances 24,122 22,0343)OtherReceivable 23 234)PayableonaccountofShip 22,346 20,5045)GuaranteesGivenforJV's 5,399 4,9546)Interestreceivable 342 3017)ExpensesrecoverablefromJV's 10 10

(f) Transactions with Subsidiary and Outstanding Balances are as follows:

Nature of Transactions 31 March 2020 31 March 2019Investment made during the year - - Expenses incurred on behalf during the year 0.22 0.19

Outstanding Balances 31 March 2020 31 March 2019Investment at the year end 5.00 5.00Receivable as at year end 9.97 9.75

(g) Transactions with Government related entities(1) Significant TransactionsGovernment related entities along with description of relationship wherein significant amount of transaction carried out:


IndianOilCorporationLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 45,585 32,692

HindustanPetroleumCorporationLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 84,703 66,098

BharatPetroleumCorporationLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 51,185 45,557

OilAndNaturalGasCorporationLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 20,247 12,938

MangaloreRefineryandPetrochemicalsLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 26,455 19,213

ChennaiPetroleumCorporationLimited CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 14,086 12,340

SteelAuthorityOfIndiaLtd CentralPSU RevenuefromFreight/CharterHire/Demurrageetc. 19,257 17,528

IndianOilCorporationLimited CentralPSU PurchasesofBunker,Oiletc 27,168 21,922

HindustanPetroleumCorporationLimited CentralPSU PurchasesofBunker,Oiletc 5,919 9,141

CochinShipyard CentralPSU Repair/Drydockofvessel 10,953 10,447

TheOrientalInsuranceCo.Ltd CentralPSU Insurance etc. 9,580 3,778

OilAndNaturalGasCorporationLimited CentralPSU Recovery of Reimbursable expenses 27,916 33,030

Andaman&NicobarAdministration A&NAdmin Recovery of Reimbursable expenses 16,962 15,641

Ministry of Earth SciencesMinistry of Earth Sciences

Recovery of Reimbursable expenses 6,106 5,655


MinesRecovery of Reimbursable expenses 5,615 6,797

Government related entities along with description of relationship wherein significant amount of balance receivable/payable from/to related parties are as follows:


HindustanPetroleumCoporationLtd. CentralPSU TradeReceivable/(Advancefromcustomer) 9,092 4,852





OilAndNaturalGasCorporationLtd. CentralPSU TradeReceivable/(Advancefromcustomer) 8,379 13,191

BharatPetroleumCorporationLtd. CentralPSU TradeReceivable/(Advancefromcustomer) 6,125 5,364

IndianOilCorporationLtd. CentralPSU TradeReceivable/(Advancefromcustomer) 5,458 3,664

GeologicalSurveyOfIndia Ministry of Mines TradeReceivable/(Advancefromcustomer) 1,534 5,648

DepartmentofFertilizers MinistryofFertilizers TradeReceivable/(Advancefromcustomer) (162) 492

NuclearPowerCorporation CentralPSU TradeReceivable/(Advancefromcustomer) 131 (4)

Ministry of External affairsMinistry of External

affairsTradeReceivable/(Advancefromcustomer) - (4)

AndamanLakshdeepHarbourworksMinistry of Surface

transportTradeReceivable/(Advancefromcustomer) 2 (4)

CochinShipyardLimited CentralPSU TradePayable/(Advancetovendor) 9,974 11,551

IndianOilCorporationLimited CentralPSU TradePayable/(Advancetovendor) 3,514 859

CochinPortTrust TrustunderMPTAct TradePayable/(Advancetovendor) (288) 6,871

VizagPortTrust TrustunderMPTAct TradePayable/(Advancetovendor) (652) 6,757

KolkataPortTrust TrustunderMPTAct TradePayable/(Advancetovendor) (433) 1,589

ParadeepPortTrust TrustunderMPTAct TradePayable/(Advancetovendor) (362) 1,411

Balmer&Lawrie&Co.Ltd CentralPSU TradePayable/(Advancetovendor) 2 (7)

TheChairmanCHPT TrustunderMPTAct TradePayable/(Advancetovendor) (105) (1)

TheOrientalInsuranceCoLtd. CentralPSU TradePayable/(Advancetovendor) 28 (1)

(2) Other than Significant TransactionsOther than significant transactions carried out are as follows:

Particulars 31 March 2020 31 March 2019Revenue 34,665 40,061Purchases/services 34,481 34,232Recovery of Reimbursable expenses 4,809 5,480

Other than significant amount of balance receivable/payable from/to related parties are as follows:

Particulars 31 March 2020 31 March 2019TradeReceivable/(Advancefromcustomers) 17,362 23,097TradePayable/(Advancetovendors) 3,569 17,553

Transactions with other government-related entitiesApartfromthetransactionsdisclosedin(g)above,theCompanyalsoconductsbusinesswithothergovernmentrelatedentities.TheCompanyhasbankdeposits,borrowingsandothergeneralbankingrelationswithPSUbanks.Otherthanthesubstantialamountofbankbalances,bankborrowingsandthefacilitieswiththesebanks,transactionswithothergovernmentrelatedentitiesareindividuallyinsignificant.(h) TrustTransactions with Post Retirement Plans managed through separate trust wherein SCI having control :

Name of the related party Nature of transaction 31 March 2020 31 March 20191. ShippingCorporationofIndiaEmployeesGratuityFund - - - 2. PostRetirementMedicalSchemefortheShoreemployeesofTheShippingCorporationofIndiaLimited

- - -

3. ProvidentFundfortheemployeesofTheShippingCorporationofIndiaLimited

Employer'sContribution 1,249 1,215




Name of the related party Nature of transaction 31 March 2020 31 March 20194. SCIEmployeeSuperannuationTrust Employer'sContribution 1,090 1,0625. ProvidentFundforTheCrewNonCDCholdersofTheShippingCorporationofIndiaLimited

- - -

Note 31: Employee Benefit Obligations(A) Description of type of employee benefitsa) The Company offers to its employee’s defined benefits plans in the form of Gratuity, leave encashment and post retirement Medical

Scheme

i. Gratuity

a) Representsbenefitstoemployeeonthebasisofnumberofyearsofservicerenderedbyemployee.Theemployee is entitled to receive the same on retirement or resignation.

b) SCIhasformedatrustforgratuitywhichisfundedbytheCompanyonaregularbasis.Theassetsofthe trust have been considered as plan assets.

ii. LeaveEncashmentRepresents unavailed leave to the credit of the employee and carried forward in accordance with terms of agreement.

iii.PostRetirementMedicalBenefitScheme

Representsbenefitsgiven toemployeessubsequent to retirementon thehappeningofanyunforeseenevent resulting in medical costs to the employee

b) The Company offers to its employee’s defined benefits plans in the form of Gratuity, leave encashment and post retirement Medical Scheme

The details of the plan are as follows:-

i. ProvidentFundItisacontributionmadeonmonthlybasis@12%ofmonthlyBasicandDAtothePFTrustwhocredits annual interest on PF balances. The corpus accumulated is paid on retirement of theemployee.

ii.PostRetirementMedicalScheme(Neww.e.f.01.01.2007)

It isacontribution@4%ofmonthlyBasicandDA towardsprovisionofemployees’medicalexpenses incurred after retirement.

iii. PensioncontributionItisacontribution@12%ofmonthlyBasicandDAtowardsprovisionofannuityafterretirementof employees.

(B) Gratuity Balance sheet amount (Gratuity Plan)



Net amount

01-Apr-18 12,228 15,471 (3,243)Currentservicecost 706 - 706Interestexpense/(income) 910 1,138 (228)


Remeasurements

Returnonplanassets,excludingamountincludedininterestexpense/(income) - 304 (304)

(Gain)/lossfromchangeindemographicassumptions (9) - (9)


Experience(gains)/losses (477) - (477)

(i) Amount recognised in other comprehensive income (197) 304 (501)Employer contributions - Benefitpayments (1,202) (1,202) -






Net amount

UnrecognisedAssetduetoLimitinPara64(b) - - -

(ii) 31 March 2019 12,446 15,711 (3,265)

(iii)UnrecognisedAssetatthebeginningoftheperiod - - -

(iv)Assetrecognisedduringtheyear(AssetCeling) - - -


Total amount recognised in other comprehensive income [(i) & (v)] (197) 304 (501)




Net amount

31-Mar-19 12,446 15,711 (3,265)


Pastservicecost - - -



Remeasurements

Returnonplanassets,excludingamountincludedininterestexpense/(income) - (243) 243

(Gain)/lossfromchangeindemographicassumptions - - -


Experience(gains)/losses (2,640) - (2,640)

(i) Amount recognised in other comprehensive income (2,087) (243) (1,844)

Employer contributions



(ii) 31 March 2020 10,388 14,961 (4,573)(iii)UnrecognisedAssetatthebeginningoftheperiod - - -(iv)Assetrecognisedduringtheyear(AssetCeling) - - -


Total amount recognised in other comprehensive income [(i) & (v)] (2,087) (243) (1,844)


For gratuity, the benefits are paid by the trust and are not debited to the profit & loss of the Company. The net liability disclosed above relates to funded and unfunded plans are as follows:


Presentvalueoffundedobligations 10,388 12,446

Fairvalueofplanassets 14,961 15,711

Deficit of funded plan (4,573) (3,265)

Unfundedplans - -


Deficit of gratuity plan (4,573) (3,265)




Significant estimates: Actuarial assumptionsThe significant actuarial assumptions were as follows:


Financial Assumptions 31-Mar-20 31-Mar-19

DiscountRate 6.69% 7.67%

Salary Escalation Rate-Shore Staff 7.80%7.50%

SalaryEscalationRate-FloatingStaff 9.00%

Expected Return on Assets 6.69% 7.67%


Mortality Table IndianAssuredLivesMortality

(2012-14)Ult.IndianAssuredLivesMortality

(2012-14)Ult.

WithdrawalRate IALM(2012-14)Ultimate0.50% IALM(2012-14)Ultimate0.50%

Retirement Age 60years 60years

Timing Related Assumptions

Time of Retirement Immediately on achieving normal retirement

SalaryIncreasefrequency Once a year

Sensitivity analysisThe sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

31-Mar-20 31-Mar-19

Defined Benefit Obligation (Base) 10388 10749


Table 14 : Sensitivity Analysis Decrease Increase Decrease Increase


320 372 633 695

Salary Growth RateImpactofincrease/decreasein50bpsonDBO

313 355 500 550

Change in the Unrecognised Asset due to the Asset Ceiling During the Period31-Mar-19 to31-Mar-20

31-Mar-18 to 31-Mar-19

UnrecognisedAsset,BeginningofPeriod - -

Asset recognised during the year - -

UnrecognisedAsset,EndofPeriod - -

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikelytooccur,andchangesinsomeoftheassumptionsmaybecorrelated.Whencalculatingthesensitivityofthedefinedbenefitobligationtosignificantactuarialassumptionsthesamemethod(presentvalueofthedefinedbenefitobligationcalculatedwiththeprojectedunitcreditmethodattheendofthereportingperiod)hasbeenappliedaswhencalculatingthedefinedbenefitliabilityrecognisedinthebalancesheet.




Particulars31-Mar-20 31-Mar-19

Quoted Unquoted Total in % Quoted Unquoted Total in %Government of India Securities 9,895 - 9,895 66% 6,984 - 6,984 44%Debt instrumentsInvestmentinBonds 400 - 400 3% 1,893 - 1,893 12%

Other Assets including accrued interest 707 226 933 6% 670 330 1,000 6%Investment in Deposits including Bank Balance - 3,733 3,733 25% - 5,834 5,834 37%Total 11,002 3,959 14,961 100% 9,547 6,164 15,711 100%

NoneofthefinancialassetsofSCIhavebeenconsideredinthefairvalueofplanassets.The expected rate of return on plan assets has been estimated on the basis of actual returns of the trust in the past years. The securities of trust have an effect on the fair value of plan assets as the value of the securities vary with the changes in the market interest rates.Actual Return on plan assets `894lakh(Prev.period`1441lakhs)Throughitsdefinedbenefitplans,thegroupisexposedtoanumberofrisks,themostsignificantofwhicharedetailedbelow:Asset volatility:The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will createadeficit.Mostoftheplanassetinvestmentsisinfixedincomesecuritieswithhighgradesandingovernmentsecurities.TheCompanyintends to maintain the above investment mix in the continuing years.Changes in bond yields:A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans’ bond holdings. Life expectancy:Thegratuityplanobligationsaretoprovidebenefitsforthelifeofthemember,soincreasesinlifeexpectancywillresultinanincreaseintheplans’liabilities.Thisisparticularlysignificantwhereinflationaryincreasesresultinhighersensitivitytochangesinlifeexpectancy.ContributionexpectedtobepaidinthenextyearisNIL.Theweightedaveragedurationofthedefinedbenefitobligationis11.24years(2019–12.01years).(C) Leave Encashment (Unfunded)Balance sheet amount (Leave Encashment)

Particulars Present value of obligation01-Apr-18 5,281 Currentservicecost 407Interestexpense/(income) 414Actuarial(Gain)/lossfromchangeinfinancialassumptions 138Actuarial(Gain)/lossfromchangeindemographicassumptions (4)Actuarial-Experience(gains)/losses 448Total amount recognised in profit and loss 1,403 Benefitpayments* (841)31-Mar-19 5,843*Forleaveencashment,thebenefitspaidaredebitedtothestatementofProfitandLoss.

Particulars Present value of obligation31-Mar-19 5,843 Currentservicecost 450Interestexpense/(income) 452Actuarial(Gain)/lossfromchangeinfinancialassumptions 507Actuarial(Gain)/lossfromchangeindemographicassumptions - Actuarial-Experience(gains)/losses 593




Particulars Present value of obligationTotal amount recognised in profit and loss 2,002 Employer contributionsBenefitpayments* (2,423)31-Mar-20 5,422 *Forleaveencashment,thebenefitspaidaredebitedtothestatementofProfitandLoss.The net liability disclosed above relates to unfunded plan are as follows:


Presentvalueofunfundedobligations 5,422 5,843

Deficit of leave encashment plan 5,422 5,843

Significant estimates: Actuarial assumptions Thesignificantactuarialassumptionswereasfollows:


Financial Assumptions 31-Mar-20 31-Mar-19DiscountRate 6.69% 7.67%Salary Escalation Rate-Shore Staff 7.80%

7.50%SalaryEscalationRate-FloatingStaff 9.00%Demographic Assumptions 31-Mar-20 31-Mar-19

Mortality Table IndianAssuredLivesMortality(2012-14)Ult.

IndianAssuredLivesMortality(2012-14)Ult.

WithdrawalRateIALM(2012-14)Ultimate0.50%

IALM(2012-14)Ultimate0.50%

Retirement Age 60years 60yearsTiming Related AssumptionsTime of Retirement Immediately on achieving normal retirementSalaryIncreasefrequency Once a year


31-Mar-20 31-Mar-19


Sensitivity Analysis31-Mar-20 31-Mar-19


Discount Rate Impactofincrease/decreasein50bpsonDBO

211 178 344 309

Salary Growth Rate Impactofincrease/decreasein50bpsonDBO

231 220 249 238

Theweightedaveragedurationofthedefinedbenefitobligationis11.24years(2019-12.01years). The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikelytooccur,andchangesinsomeoftheassumptionsmaybecorrelated.Whencalculatingthesensitivityofthedefinedbenefitobligationtosignificantactuarialassumptionsthesamemethod(presentvalueofthedefinedbenefitobligationcalculatedwiththeprojectedunitcreditmethodattheendofthereportingperiod)hasbeenappliedaswhencalculatingthedefinedbenefitliabilityrecognisedinthebalancesheet.




(D) Post Retirement Medical Benefit SchemeBalance sheet amount (Post Retirement Medical Benefit Scheme)



Net amount

01-Apr-18 2,442 1,091 1,351Pastservicecost (279) (279)Interestexpense/(income) 181 77 104Total amount recognised in profit and loss (98) 77 (175)RemeasurementsReturnonplanassets,excludingamountincludedininterestexpense/(income) - - - (Gain)/lossfromchangeindemographicassumptions - - -(Gain)/lossfromchangeinfinancialassumptions 12 12Experience(gains)/losses (75) 1 (76)Total amount recognised in other comprehensive income (63) 1 (64)Employer contributions - - Benefitpayments (198) (198) - 31-Mar-19 2,083 971 1,112



Net amount

31-Mar-19 2,083 971 1,112Pastservicecost (17) (17)Interestexpense/(income) 151 74 77 Total amount recognised in profit and loss 134 74 60RemeasurementsReturnonplanassets,excludingamountincludedininterestexpense/(income) - - -(Gain)/lossfromchangeindemographicassumptions - - -(Gain)/lossfromchangeinfinancialassumptions 202 - 202Experience(gains)/losses 75 (105) 180Total amount recognised in other comprehensive income 277 (105) 382Employer contributions - - - Benefitpayments (230) (230) - 31-Mar-20 2,264 710 1,554

The net liability disclosed above relates to funded and unfunded plans are as follows:

Particulars 31-Mar-20 31-Mar-19Presentvalueoffundedobligations 2,264 2,083Fairvalueofplanassets 710 971Deficit of funded plan 1,554 1,112 Deficit of Post Retirement Medical Benefit Scheme plan 1,554 1,112

Significant estimates: Actuarial assumptionsThesignificantactuarialassumptionswereasfollows:

Financial Assumptions 31-Mar-20 31-Mar-19DiscountRate 6.69% 7.67%Expected Return on Assets 6.69% 7.67%





Mortality Table LIC(1996-98)Ult

(Annuitant)LIC(1996-98)Ult

(Annuitant)Timing Related Assumptions

Time of RetirementImmediately on achieving normal

retirement




Table 12 : Sensitivity Analysis31-Mar-20 31-Mar-19



86 (76) 44 39


31-Mar-20




Total - 710 710 100%


31-Mar-19




Total - 971 971 100%

NoneofthefinancialassetsofSCIhavebeenconsideredinthefairvalueofplanassets.The expected rate of return on plan assets has been estimated on the basis of actual returns of the trust in the past years. The securities of trust have an effect on the fair value of plan assets as the value of the securities vary with the changes in the market interest rates.Defined benefit liability and employer contributions:ContributionexpectedtobepaidinthenextyearisNIL.Theweightedaveragedurationofthedefinedbenefitobligationis10.76years(2019–10.21years).Theexpectedfuturecashflowsasat31.03.2020areasfollows:Projectedbenefitspayableinfutureyearsfromthedateofreporting











Years6to10 3,451 2,608 1,432

Theexpectedfuturecashflowsasat31.03.2019areasfollows:Projectedbenefitspayableinfutureyearsfromthedateofreporting






5th following year 1,054 672 373

Years6to10 3,502 2,248 1,305

Note 32: Segment information(a) Business SegmentsTheGroupismanagedbytheBoardwhichisthechiefdecisionmaker.TheBoardhasdeterminedtheoperatingsegmentsbasedonthepatternofvesselsdeployedbytheGroup,forthepurposesofallocatingresourcesandassessingperformance.(I) Liner Liner segment includes break-bulk, container transport, passenger vessels & research vessels managed on behalf of other

organisations.(II) Bulk BulkCarriersincludedrybulkcarriers.(III) Tanker Tankers segment includes both crude and product carriers, gas carriers.(IV) T&OS Technical & Offshore services segment includes group owned offshore vessels, offshore vessels managed on behalf of other

organisations and income from technical consultancy.(V) Others Others segment include income earned from Maritime Training Institute.(VI) Unallocated Unallocableitemsandinterestincome/expensesaredisclosedseparately. Expense and Revenue items are allocated vessel wise wherever possible. Expenses and revenue items that cannot be allocated vessel

wiseareallocatedonthebasisofageofthevesseli.e.(Currentyear-Builtyear)+1.(b) Geographical Segments Presently,theGroup'soperationsarepredominantlyconfinedinIndia.(c) Adjusted Earnings before Interest & Tax (EBIT) AdjustedEBITexcludesdiscontinuedoperationsand theeffectsofsignificant itemsof incomeandexpenditurewhichmayhavean

impacton thequalityof earningssuchas restructuringcosts, impairmentswhen the impairment is the result of an isolated,non-recurringevent.Italsoexcludestheeffectsofgainsorlossesonfinancialinstruments.

Interest income is not allocated to segments, as this type of activity is driven by the central treasury function, which manages the cash positionoftheGroup




EBIT 31 March 2020 31 March 2019Liner (13,131) (8,960)Bulk (1,276) 3,277Tanker 73,667 19,301T&OS 7,412 (906)Others 188 (171)Unallocated (400) 12,767Total adjusted EBIT 66,460 25,308

Adjusted EBIT reconciles to profit before income tax as follows: Particulars 31 March 2020 31 March 2019Total adjusted EBIT 66,460 25,308Financecosts:Liner 87 125Bulk 3,718 4,788Tanker 5,894 7,935T&OS 1,967 2,546Others - - Unallocated 24,747 20,511TotalFinancecosts 36,413 35,905Interest income from investments 8,117 9,045Profit before income tax from continuing operations 38,164 (1,552)

Depreciation included in adjusted EBIT Particulars 31 March 2020 31 March 2019Liner 2,115 1,889Bulk 11,256 11,234Tanker 46,679 44,619T&OS 7,017 8,045Others 61 59Unallocated (1) - Total Depreciation included in adjusted EBIT 67,127 65,846

(d) Segment revenue Thesegmentrevenueismeasuredinthesamewayasinthestatementofprofitorloss.

Segment

31 March 2020 31 March 2019



Revenue from

external customers



Revenue from

external customers

Liner 64,488 - 64,488 59,362 - 59,362Bulk 57,034 - 57,034 58,603 - 58,603Tanker 295,819 - 295,819 246,195 - 246,195T&OS 28,706 - 28,706 22,832 - 22,832Others 1,886 - 1,886 1,693 - 1,693Total Segment Revenue 447,933 - 447,933 388,685 - 388,685 Unallocated 10,789 - 10,789 12,779 - 12,779Total segment revenue as per Profit and Loss 458,722 - 458,722 401,464 - 401,464




Information about major customers Revenuetospecificcustomersexceeding10%oftotalrevenuefortheyearended31st March2020and31stMarch2019wereasfollows:

Revenue from external customers31 March 2020 31 March 2019

Tanker segment

Liner Segment Total Tanker

segmentLiner

Segment Total

BharatPetroleumCorporationLtd. 51,185 - 51,185 45,557 - 45,557

HindustanPetroleumCorporationLtd. 84,703 - 84,703 66,098 - 66,098

IndianOilCorporationLtd 44,699 885 45,584 31,902 790 32,692

The Group is domiciled in India. The amount of its revenue from external customers (exceeding 4%) broken down by location of thecustomers is shown in the table below:

Revenue from external customers 31 March 2020 31 March 2019

India 373,996 320,733

Singapore 26,757 16,241

OtherCountries 47,180 51,711

Total 447,933 388,685

(e) Segment assets

Segment31 March 2020 31 March 2019

Segment assets


Segment assets


Liner 68,246 - 71,353 -

Bulk 172,212 - 176,108 -

Tanker 599,972 - 629,368 -

T&OS 121,393 - 128,530 -

Others 1,227 - 707 -

Total segment assets 963,050 - 1,006,066 -

Unallocated 428,810 - 429,603 -

Total assets as per the balance sheet 1,391,860 - 1,435,669 -

(f) Segment liabilities

Segment 31 March 2020 31 March 2019

Liner 72,883 107,803

Bulk 73,172 110,458

Tanker 113,145 217,560

T&OS 43,110 72,281

Others 474 485

Total segment liabilities 302,784 508,587

Unallocated 340,710 208,759

Total liabilities as per the balance sheet 643,494 717,346




Note 33: Revenue from Contract with customers The revenue from contracts with customers to the amounts disclosed as total revenue are as under:


RevenuefromContractwithCustomers 375,853 335,634

Revenue from Other Sources

Charterhire(lease) 82,445 65,309

Other income 8,541 9,566

Total Revenue 466,839 410,509

The disaggregation of Revenue from Contract with Customers is as under: (A) Revenue from Contract with Customers - Segmentwise


Liner 64,486 59,362

Bulk 38,552 35,232

Tanker 249,498 220,449

T&OS 11,065 6,640

Others 1,886 1,693

Unalloacated 10,366 12,258

Total Revenue from Contract with Customers - Segmentwise 375,853 335,634

(B) Revenue from Contract with Customers – Geographical Location

Particulars 31 March 2020

India Singapore Others Total

Liner 57,888 355 6,243 64,486

Bulk 36,595 126 1,831 38,552

Tanker 218,650 8,047 22,801 249,498

T&OS 11,065 - - 11,065

Others 1,886 - - 1,886

Unalloacated 355 22 9,989 10,366

Total Revenue 326,439 8,550 40,864 375,853


India Singapore Others Total

Liner 49,845 331 9,186 59,362

Bulk 35,264 (62) 30 35,232

Tanker 187,943 4,791 27,715 220,449

T&OS 6,636 1 3 6,640

Others 1,329 - 364 1,693

Unalloacated (251) - 12,509 12,258

Total Revenue 280,766 5,061 49,807 335,634




C) On the basis of Timing of Revenue Recognition:


At Point in time At Point over time Total

Liner 150 64,336 64,486

Bulk 2,219 36,333 38,552

Tanker 19,507 229,991 249,498

T&OS 4,648 6,417 11,065

Others 45 1,841 1,886

Unalloacated 11,084 (718) 10,366

Total Revenue 37,653 338,200 375,853


At Point in time At Point over time Total Liner 820 58,542 59,362Bulk 2,894 32,338 35,232Tanker 15,035 205,414 220,449T&OS 270 6,370 6,640Others 33 1,660 1,693Unalloacated 12,928 (670) 12,258Total Revenue 31,980 303,654 335,634

Contract Asset


OpeningBalanceofContractAsset 33,968 26,597

OpeningBalancereclassifiedasTradeReceivableincurrentperiod 33,052 25,545

Currentyearadjustmentcarriedforward 46,485 32,267

Closing Balance of Contract Asset 46,752 33,968

Contract Liability Particulars 31 March 2020 31 March 2019

OpeningBalanceofContractLiability 688 1,894RevenueRecognisedfromtheopeningbalanceofContractLiability 688 1,894CurrentyearContractliability-CarriedForward 1,238 688Closing Balance of Contract Liability 1,238 688 Thenatureofservicesanditsdisclosureoftimingofsatisfactionofperformanceobligationismentionedinpara1.19ofNoteNo.1.ContractAssets in thebalancesheetconstitutesunbilledamounts tocustomers representing theGroup’s right toconsideration for theservicestransferredtodate.AnyamountpreviouslyrecognisedasContractAssetsisreclassifiedtotradereceivablesatthetimeitisinvoicedto the customer.ContractLiabilitiesinthebalancesheetconstitutesadvancepaymentsandbillingsinexcessofrevenuerecognised.TheGroupexpectstorecognisesuchrevenueinthesubsequentfinancialyears.Therewerenosignificantchangesincontractassetsandcontractliabilitiesduringthereportingperiodexceptamountasmentionedinthetable and explanation given above.Tradereceivablesasdisclosedinnoteno7(e)includescontractbalances.ImpairmentlossesasdisclosedinNote38includesreceivablesarising from contracts with customers.




UnderthepaymenttermsgenerallyapplicabletotheGroup’srevenuegeneratingactivities,prepaymentsarereceivedonlytoalimitedextent.Typically, payment is due upon or after completion of the services.TheGroupgeneratesrevenuefromshippingactivities.Revenuefromavoyagecharterisrecognisedovertime,whichisdeterminedonapercentageofvoyagecompletionmethod.TheGrouphasrecognisedrevenueoveraperiodoftimebasisfollowingoutputmethod.Since,theGroupcantrackstheprogresstowardcompletionofthecontractbymeasuringdaystodaterelativetototalestimateddaysneededtosatisfytheperformanceobligation,thepercentageofvoyagecompletionmethod/straight-linebasisovertheperiodofthecharteri.e.outputmethod provide a faithful depiction of transfer of goods or services.

Note 34: LEASETheGroupas lesseehasagreements/contractsrelating tocharter inofvesselontimebasis, land,building,Cars,Photocopiermachineetc.TheGroupaslessorhasenteredintoagreements/contractsofoutcharterofvesselontime,etc.Theright-of-useandleaseliabilityaredisclosedinthefinancialstatementsatnoteno6&15(b)respectively.ThePaymentsassociatedwithshort-termleasesandleasesoflow-valueassetsarerecognisedonastraight-linebasisasanexpenseinprofitorloss.ThefollowingtableshowstheeffectsofLeasesintheStatementoftheProfitandLossinfinancialyear2019-20:

Amounts recognised in profit and loss 31 March 2020

Depreciationcostonright-of-useassets 293

Interestexpenses(includedinfinancecosts) 249

Expenses relating to service elements of leases -

Expenses relating to short-term leases 7,489

Expenses relating to variable lease payments -

Expenses relating to leases of low-value assets -

Total recognised in operating costs 8,031

Totalcashoutflowimpactforleasesfortheyear2019-20was`340lakhs,ofwhich`224lakhsrelatestointerestexpense.OPERATING LEASE COMMITMENTS(1) As a Lessee - PaymentsAtthebalancesheetdate,theGrouphasthefollowingcontractualcommittedfutureminimumleasepayablesundernon-cancellableoperatingleasesfromtime-chartercontracts,land,building,Cars,Photocopiermachineetcintheaggregateandeachofthefollowingperiods:

Particulars 31 March 2020* 31 March 2019Notlaterthan1year 3,125 2,183Laterthan1yearandnotlaterthan5years 1,369 150Laterthan5Years 2,392 30*Theleasepayablesincludebothinterestandprincipalcashflows.Theleasehasvaryingtermsandrenewalrights.TheGroup'soperatingleaseforvesselshavetermsrangingfromlessthan1yearto5years.Vesselsontimecharterhireareconsideredasoperatinglease.(2) As a Lessor - ReceiptsAt the balance sheet date, the Group has the following contractual committed futureminimum lease receivable under non-cancellableoperating leases from time - charter contracts in the aggregate and each of the following periods:

Particulars 31 March 2020 31 March 2019Notlaterthan1year 38,469 19,777Laterthan1yearandnotlaterthan5years 23,243 9,485Laterthan5Years - - TheGroup'soperatingleaseforvesselshavetermsrangingfromlessthan1yearto5years.Certainoftheleaseshavevaryingtermsandrenewal rights.Vesselsontimecharterhireareconsideredasoperatinglease.




Note 35: Assets pledged as securityParticulars Notes 31 March 2020 31 March 2019

CurrentFinancial AssetsOther bank balances 7(g) 8,553 8,434Total current assets pledged as security 8,553 8,434 Non-currentFinancial AssetsNon-currentinvestments 6(a) 7,359 7,359Non Financial AssetsProperty,PlantandEquipment 3 656,439 682,099Total non-current assets pledged as security 663,798 689,458 Total assets pledged as security 672,351 697,892

Note 36: Offsetting Financial Assets and Financial LiabilitiesThefollowingtablepresentstherecognisedfinancialinstrumentsthatareoffsetandotheragreementsbutnotoffset,asatMarch31,2020andMarch31,2019.Thecolumn‘netamount’showstheimpactontheGroup’sBalanceSheetifallset-offrightswereexercised.

Particulars


Gross amount

Gross amounts set

off in the balance sheet

Net amount presented in the balance

sheet

Amounts subjects to

master netting arrangements


Net amount

March 31, 2020Financial assetsi. Investments 29,835 - 29,835 - - 29,835ii. Trade receivables 60,623 - 60,623 - - 60,623iii.Cashandcashequivalents 24,478 - 24,478 - - 24,478iv.Bankbalancesotherthan(iii)above 69,304 - 69,304 - 8,553 60,751v.Loans 23,265 - 23,265 - - 23,265vi.Otherfinancialassets 56,319 - 56,319 - - 56,319Total 263,824 - 263,824 - 8,553 255,271 Financial liabilitiesi.Borrowings 366,380 - 366,380 - - 366,380ii.LeaseLiabilities 2,604 - 2,604 - - 2,604iii. Trade payables


iv.Otherfinancialliabilities 129,421 - 129,421 - - 129,421Total 593,965 - 593,965 - - 593,965March 31, 2019Financialassetsi. Investments 27,921 - 27,921 - - 27,921ii. Trade receivables 59,892 - 59,892 - - 59,892iii.Cashandcashequivalents 9,538 - 9,538 - - 9,538iv.Bankbalancesotherthan(iii)above 90,282 - 90,282 - 8,434 81,848v.Loans 24,417 - 24,417 - - 24,417




Particulars


Gross amount

Gross amounts set

off in the balance sheet

Net amount presented in the balance

sheet

Amounts subjects to

master netting arrangements


Net amount

vi.Otherfinancialassets 47,674 - 47,674 - - 47,674Total 259,724 - 259,724 - 8,434 251,290Financialliabilitiesi.Borrowings 411,414 - 411,414 - - 411,414ii. Trade payables


iii.Otherfinancialliabilities 131,660 - 131,660 - - 131,660Total 670,344 - 670,344 - - 670,344

Note 37: Fair value measurements Financial instruments by category


FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised

costFinancial assetsInvestments-Equityinstruments 362 - - 350 - - - Mutual funds - - - - - - Loans - - 23,265 - - 24,417Trade receivables - - 60,623 - - 59,892Cashandcashequivalents - - 24,478 - - 9,538Other bank balances - - 69,304 - - 90,282Bankdepositswithmorethan12monthsmaturity - - - - - - Otherfinancialassets - - 56,319 - - 47,674Total financial assets 362 - 233,989 350 - 231,803 Financial liabilitiesBorrowings - - 366,380 - - 411,414LeaseLiabilities - - 2,604 - - - Trade payables - - 95,560 - - 127,270Currentmaturitiesoflongtermdebt - - 107,739 - - 116,331Otherfinancialliabilities - - 21,682 - - 15,329Total financial liabilities - - 593,965 - - 670,344

(i) Fair value hierarchyThis section explains thejudgementsandestimatesmadeindeterminingthefairvaluesofthefinancialinstrumentsthatare(a)recognisedandmeasuredatfairvalueand(b)measuredatamortisedcostandforwhichfairvaluesaredisclosedinthefinancialstatements.Toprovidean indication about the reliabilityoftheinputsusedindeterminingfairvalue,theGrouphasclassifieditsfinancialinstrumentsintothethreelevelsprescribedunderIndAS113.Anexplanationofeachlevelfollowsunderneaththetable.








Financial assetsLoanstorelatedparties 7(b) - - 23,512 23,512Loanstoothers 7(b) - - 1,896 1,896Bankdeposits 7(c) - - - - Total financial assets - - 25,408 25,408 Financial LiabilitiesBorrowings 14(a) - 275,477 - 275,477Security deposits 14(c) - - 25 25Total financial liabilities - 275,477 25 275,502





Financial assetsInvestmentsLoanstorelatedparties 7(b) - - - - Loanstoothers 7(b) - - 1,562 1,562Bankdeposits 7(c) - - - - Total financial assets - - 1,562 1,562 Financial LiabilitiesBorrowings 14(a) - 368,997 - 368,997Security deposits 14(c) - - 41 41Total financial liabilities - 368,997 41 369,038 Thefairvalueoffinancialinstrumentsreferredabovehavebeenclassifiedintothreecategoriesdependingontheinputsusedinthevaluationtechnique.Thehierarchygivesthehighestprioritytoquotedpricesinactivemarketforidenticalassetsorliabilities(level1measurements)andlowestprioritytounobservableinputs(level3measurements).Thecategoriesusedareasfollows:




Level 1: Hierarchyincludesfinancialinstrumentsmeasuredusingquotedprices.Thisincludesmutualfundsthathaveaquotedprice.ThemutualfundsarevaluedusingtheclosingNAV.Level 2: The fair valueof financial instruments that arenot traded inanactivemarket isdeterminedusingvaluation techniqueswhichmaximisetheuseofobservablemarketdataandrelyaslittleaspossibleonentity-specificestimates.Ifallsignificantinputsrequiredtofairvalueaninstrumentareobservable,theinstrumentisincludedinlevel2.Level 3:Ifoneormoreofthesignificantinputsisnotbasedonobservablemarketdata,theinstrumentisincludedinlevel3.Thisisthecaseforunlistedequitysecuritieswhichareincludedinlevel.There were no transfers between any levels during the year.(ii) Valuation technique used to determine fair valueSpecificvaluationtechniquesusedtovaluefinancialinstrumentsinclude:l theuseofclosingNAVforinvestmentinmutualfundsl theuseofbookvaluesforinvestmentinunlistedequitysecuritiesl thefairvalueoftheremainingfinancialinstrumentsisdeterminedusingdiscountedcashflowanalysis.Alloftheresultingfairvalueestimatesareincludedinlevel1and2exceptforunlistedequitysecurities,wherethefairvalueshavebeendetermined based on present values and the discount rates used were adjusted for counterparty or own credit risk.(iii) Fair value measurements using significant unobservable inputs (level 3)Thefollowingtablepresentsthechangesinlevel3itemsfortheperiodsended31March2020and31March2019:

Particulars Unlisted Equity SecuritiesAs at 1st April 2018 118 Gains(losses)recognisedinStatementofprofitorloss 232As at 31 March 2019 350 Gains(losses)recognisedinStatementofprofitorloss 12As at 31 March 2020 362

ParticularsFair Value as at Significant

unobservable inputs

Sensitivity

31 March 2020 31 March 2019 2020 2019

Valuation inputs and relationship to fairvalue-InvestmentinEquitySecuritiesheldfor sale (non recurring)

7 7 Netbook values

Notapplicable

Valuationinputsandrelationshiptofairvalue-UnlistedEquitySecurities(recurring)* 362 350

Netbook values

increase (decrease) in the book value would result in

increase (decrease) in fair value*Netbookvalueason31stMarch,2020iscalculatedbasedonlatestavailableFinancialStatements(i.e.31st March2019)(iv) Valuation processes Thefinancedepartmentof theGroup includesa team thatalongwith treasury functionperforms thevaluationsoffinancialassetsandliabilitiesrequiredforfinancialreportingpurposes,includinglevel3fairvalues.ThisteamreportsdirectlytotheDirector(finance).·Forunlistedequitysecurities,theirfairvaluesareestimatedbasedonthebookvaluesoftheinvesteecompanies.(v) Fair value of financial assets and liabilities measured at amortised cost


Carrying amount Fair value Carrying amount Fair valueFinancial assetsLoanstorelatedparties 23,512 23,512 - - Loanstoemployee 1,896 1,896 1,562 1,562Bankdeposits - - - - Total financial assets 25,408 25,408 1,562 1,562





Carrying amount Fair value Carrying amount Fair valueFinancial Liabilities

Borrowings 167,738 275,477 368,997 368,997

Security deposits 25 25 41 41Total financial liabilities 167,763 275,502 369,038 369,038 Thecarryingamountsoftradereceivables,tradepayables,shorttermsecuritydeposits,bankdepositswithmorethan12monthsmaturity,cashandcashequivalentsincludingotherbankbalancesandothercurrentfinancialassetsandliabilitiesareconsideredtobethesameastheirfairvalues.Hencethecurrentfinancialassets&liabilitieshavenotbeenconsideredforFairvaluehierarchyabove.

The fair values of non-current borrowings (with floating rate of interest) is not impacted due to interest rate changes andwill not besignificantlydifferentfromtheircarryingamountasthereisnosignificantchangeintheunderlyingcreditriskoftheGroup'sborrowings.

Thefairvaluesofnon-currentborrowings(withfixedrateofinterest)arebasedondiscountedcashflowsusingacurrentborrowingrate.Theyareclassifiedaslevel2fairvaluesinthefairvaluehierarchyduetotheuseofobservableinputs.

Forfinancialassetsandliabilitiesthataremeasuredatfairvalue,thecarryingamountsareequaltothefairvalues.

Note 38: Financial risk management

TheGrouphasexposuretotheCreditrisk,LiquidityriskandMarketrisk.

TheGroup'sBoardofDirectorshasoverallresponsibilityfortheestablishmentandsupervisionoftheGroup'sriskmanagementframework.TheBoardofDirectorshasestablishedtheRiskManagementCommittee(RMC),whichisresponsiblefordevelopingandmonitoringtheGroup'sriskmanagementpolicies.TheAuditCommitteeoverseeshowmanagementmonitorscompliancewiththeGroup'sriskmanagementpoliciesandprocedures,andreviewstheadequacyoftheriskmanagementframeworkinrelationtotherisksfacedbytheGroup.

(A) Credit Risk :

(i)CreditriskistheriskoffinanciallosstotheGroupifacustomertoafinancialinstrumentfailstomeetitscontractualobligations.Group'sexposure to credit risk primarily arises on account of its Trade receivables. Trade receivables consist of a large number of customers spread across diverse geographical areas. A default on a trade receivable is considered when the customer fails to make contractual payments withinthecreditperiod.ThiscreditperiodhasbeendeterminedbyconsideringthebusinessenvironmentinwhichtheGroupoperates.TheGroupconsidersdealingwithcreditworthycustomersandobtainingsufficientcollateral,whereappropriate,asameansofmitigatingtheriskoffinanciallossfromdefaults.Thecreditriskduetoaboveisperiodicallymonitored.Basedontheperiodicalanalyses,thecreditriskismanaged by continuous review and follow-up.

(ii) Provision for expected credit losses (ECL) :

TheGroupprovidesforexpectedcreditlossontradereceivablesbasedonaprovisionmatrix.Thismatrixisasimplifiedbasisofrecognitionof expected credit losses in case of trade receivables. The model uses historical credit loss experience for trade receivables i.e. this model uses aging analysis of trade receivables as at the reporting date and is based on the number of days that a trade receivables is past due. Theaginghasbeendoneforbracketof90daysoveraperiodoflast3years.Receivablesthataremorethan3yearsoldareconsidereduncollectible.Further,customersdeclaringbankruptcyorfailingtoengageinrepaymentplanwiththeGroup,provisioningismadeoncaseto case basis i.e. such customers do not form part of this impairment exercise and provided for separately.(iii) Reconciliation of Trade receivables:


Grosscarryingamountoftradereceivables 82,672 85,515

Less:Expectedcreditlosses 8,469 10,940

Less:Provisionmadeseparatelyforbankrupt/terminatedagents 1,059 4,255

Less:OtherProvision(i.e.OffHire,Demurrage,others) 12,521 10,428

Carrying amount of trade receivables (net of impairment) 60,623 59,892




(iv) Reconciliation of loss allowance provision (ECL) - Trade receivables : Particulars Amount

Loss allowance on 1st April 2018 12,504 Changesinlossallowance (1,564)Loss allowance on 31st March 2019 10,940 Changesinlossallowance (2,471)Loss allowance on 31st March 2020 8,469

(B) Liquidity risk (i) PrudentliquidityriskmanagementreferstothemanagementoftheGroup'sshorttermandlongtermfundingandliquiditymanagementrequirements.TheGroup'streasurymaintainsflexibilityinfundingbymaintainingavailabilityoffundsundercommittedcreditlines.Groupmanagesliquidityriskbymaintainingadequatereserves,bankingfacilitiesandreserveborrowingfacilities,bycontinuouslymonitoringforecastandactualcashflows,andbymatchingthematurityprofilesoffinancialassetsandliabilities.(ii) Maturities of financial liabilitiesThetablesbelowanalysetheGroup’snon-derivativefinancialliabilitiesintorelevantmaturitygroupingsbasedontheircontractualmaturities.ThetableshavebeendrawnupbasedontheundiscountedcashflowsoffinancialliabilitiesbasedontheearliestdateonwhichtheGroupcanberequiredtopay.Inthetablebelow,borrowingsincludebothinterestandprincipalcashflows.Totheextentthatinterestratesarefloatingrate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.


Less than 1 year



Borrowings 318,900 139,088 45,820 503,808Trade payables 95,560 - - 95,560LeaseLiabilities 3,125 1,369 2,392 6,886Security and other deposits 1,013 25 - 1,038Othersfinancialliabilities 20,644 - - 20,644Total liabilities 439,242 140,482 48,212 627,936


Less than 1 year



Borrowings 297,007 213,242 68,570 578,819Trade payables 127,270 - - 127,270LeaseLiabilities - - - - Security and other deposits 861 41 - 902Othersfinancialliabilities 14,427 - - 14,427Total liabilities 439,565 213,283 68,570 721,418

(C) Market riskMarket risk is the risk that changes in market indicators such foreign exchange rates, interest rates and commodity prices will affect the Group's incomeor thevalueof itsfinancial instruments.TheGroup'sactivitiesmainlyexpose it torisksarisingfromchanges inforeignexchangerateandinterestrateandfreight/charterhirerates.(i) Foreign currency riskTheGroupoperatesvesselsinforeignwaters,earnsrevenuesandincursexpenditureinforeigncurrencies,primarilywithrespecttoUSD,EUROandcertainotherforeigncurrencies.ForeigncurrencyriskarisesfromfuturecommercialtransactionsandrecognisedassetsandliabilitiesdenominatedinacurrencythatisnottheGroup'sfunctionalcurrency(INR).ConsideringthebusinessenvironmentinwhichGroupoperates,exposuretoforeignexchangerateriskislargelymanagedbycollectionofincome in foreign currencies in short term bank accounts abroad.




(a) Foreign currency risk exposure:TheGroup'sexposuretoforeigncurrencyriskattheendofthereportingperiodexpressedinINR,areasfollows


USD EUR Others USD EUR OthersFinancial assetsNonCurrentloans&Advances 23,512 - - - - - Currentassets 2,440 - 79 10,599 - 77 CurrentLoans&Advances 610 - - 22,034 - - Cashandcashequivalents 801 748 1,290 2,017 729 386OtherBankBalances - - - 208 - - Trade Receivables 15,079 6,625 6,336 20,781 5,060 10,752Exposure to foreign currency risk (assets) 42,442 7,373 7,705 55,639 5,789 11,215 Financial liabilitiesLongTerm(Non-Current)Borrowings 167,738 - - 252,666 - - OthercurrentLiabilities 119,758 334 (69) 84,866 446 (504)ShortTermBorrowings 198,642 - - 158,748 - - TradePayables 21,315 5,494 8,941 57,628 1,927 9,364Exposure to foreign currency risk (liabilities) 507,453 5,828 8,872 553,908 2,373 8,860 Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale 22,346 - - 20,504 - - Total exposure to foreign currency risk (liabilities) 529,799 5,828 8,872 574,412 2,373 8,860

(b) SensitivityThefollowingtabledetailstheGroup'ssensitivitytoa3%increase/decreaseinINRasagainstUSDand3%increase/decreaseinINRasagainstEUR.Thesensitivityanalysisincludesonlyforeigncurrencydenominatedmonetaryitems.


31 March 2020 31 March 2019USD sensitivityINR/USD-Increaseby3%(31March2019-3%) (14,621) (15,563)INR/USD-Decreaseby3%(31March2019-3%) 14,621 15,563EUR sensitivityINR/EUR-Increaseby3%(31March2019-4%) 46 137INR/EUR-Decreaseby3%(31March2019-4%) (46) (137)

(ii) Interest rate riskInterestraterisk is therisk that thefuturecashflowsoffloating interestbearingborrowingswillfluctuatebecauseoffluctuations in theinterestrates.TheGroup’smaininterestrateriskarisesfromlong-termborrowingswithvariablerates,whichexposetheGrouptocashflowinterest rate risk. TheGroup'sfixedrateborrowingsarecarriedatamortisedcost.TheyarethereforenotsubjecttointerestrateriskasdefinedinIndAS107,sinceneitherthecarryingamountnorthefuturecashflowswillfluctuatebecauseofachangeinmarketinterestrates.TheGroupmanagesitsinterestrateriskbyregularlymonitoringtheinterestratemovementanddecidingontypeofinterestratei.e.fixedorfluctuating.(a) Interest rate risk exposureTheexposureoftheGroup’sborrowingtointerestratechangesattheendofthereportingperiodareasfollows:

Particulars 31 March 2020 31 March 2019Variablerateborrowings 475,282 529,906Total borrowings at variable rate 475,282 529,906




(b) Sensitivity The sensitivity analysis has been determined based on the exposure to interest rate risk on the borrowings outstanding as at the end of the reporting period. The analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding forthewholeyearwitha100basispointincreaseordecrease.


31 March 2020 31 March 2019

Interestrates–increaseby100basispoints(100bps) (4,753) (5,299)

Interestrates–decreaseby100basispoints(100bps) 4,753 5,299

(iii) Freight/Charter hire riskShippingindustryisgovernedbyvariousnationalandinternationaleconomicandgeopoliticaldevelopments.Localandinternationaldemandandsupplydeterminefreightandcharterhirerates.SinceGroup'svesselsplyininternationalwaters,itisaffectedbysuchdevelopments.Also,bunkercostismajorcomponentofGroup'scoststructureandbunkerpricesarehighlyvolatile.

Note 39: Capital management(a) Risk managementTheGroup’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sabilitytocontinueasagoingconcerninordertoprovidereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.TheGroupmonitorscapitalonthebasisofthedebtequityratio.Thisratioiscalculatedasdebtdividedbytotalequity.DebtiscalculatedasLongTermBorrowings(includingcurrentportionofLongTermborrowingsasshownintheBalanceSheet).


NetDebt 275,477 368,997

TotalEquity 748,366 718,323

Net debt to equity ratio 0.37 0.51

(b) Loan covenantsThecompanyhas7ECBLoanAgreementswith5banksoutofwhich3banksarehavingfinancialcovenantofDebtServiceCoverageRatio(DSCR).OneofthebankcomputesDSCRbyaddingunencumberedcashwithEBIDTAhencerequiredDSCRismetforthatbankhoweverforremainingtwobanksDSCRisnotmetduringtheFinancialyear2019-20.Thecorporationisintheprocessofseekingwaiverforthebreachofthecovenantonthegroundthatallthefinancialobligationhavebeenmetappropriately.

Note 40Onthebasisofreviewofresidualvalueofvessels,2PSVand5AHTSvesselsareestimatedtobehavingscrapvaluelessthan5%oforiginalcost.Therefore,residualvalueof2PSVand5AHTSvesselsisreducedaccordingly.Duetothischange,depreciationfortheyearended31stMarch2020ishigherby`19.19lakhsandprofitfortheFY2019-20islowerby`19.19lakhs.Duetothesaidchange,depreciationexpenses for the future period will be higher by approximate `19.19lakhseveryyear.

Note 41During the quarter ended31stMarch, 2020, theCompany sold its vesselMT.MaharajaAgrasenDWT1,47,474. TheMemorandumofAgreement(MOA)wassignedwiththebuyeron19.03.2020andInstrumentofSalewasreleasedtothebuyeron26.03.2020.InviewoftheworldwidepandemicduetospreadofCovid-19,SriLankahadimposednationwidelockdownandcurfew,duringwhichsigning-offandlandingofourcrewinSriLankanterritorywastotallybannedbythelocalauthorities.Thereafterthephysicaldeliveryofthevesseltobuyerfinallytookplaceon27.04.2020atGalleanchorage(SriLanka).

Note 42C&AGhasraisedanobservationrelatingtopaymentofPerformanceRelatedPay(PRP)of` 11.03croresfortheFY2014-15withrespecttotwoissuesi.e.identificationofCoreandNonCoreincomeasperDPEguidelinesandobserving“BellCurve”approachinPRPcalculation.RegardingidentificationofCoreandNonCoreincome,theCompanyhastakentheissuefordeliberationintheNominationandRemunerationCommitteeoftheBoard.TheCommitteehasendorsedthestandtakenbytheCompanyoncertainitemsandadvisedtheCompanytotakethe matter forward. Appropriate action shall be taken based on further developments in the matter.




Note 43TheCovid-19outbreakhasaffectedthewholesupplychainworldwideandhashadsevereimpactwithrespecttopolitical,social,economicandfinancial frontsaswell.TheCompanyhasassessedtheoverall impactofthesituationinMarch2020itselfandhadtakeneffectivemeasures to minimise disruption to operations and ensure that the business remains viable during the virus outbreak and thereafter. Revenue oftheCompanyfortheyearended31stMarch2020isnotaffectedbypandemicCovid19asitstartedinlateMarch2020.Howevertherewasasuddendropinthecrudeoilprices,whichtouchedhistoricallylowlevels.ThisledtheCompanytowritedownitsinventoriesby` 829.14lakhsandcorrespondingimpactisdisclosedasexpenseintheStatementofProfitandLoss.It isalsofurtherassessedthatCovid-19doesnothaveanysignificantimpactonCompanyOperationsgoingforward.TheManagementbasedonitsassessmenthasestimateditsfuturecashflowsfortheCompanywhichindicatesnomajorchangeinthefinancialperformanceasestimatedpriortoCOVID-19andhence,theCompanybelievesthatthereisnoimpactonitsabilitytocontinueasagoingconcernandmeeting its liabilitiesasandwhen they falldue.Withsystemdrivenenvironment therehasbeenno impact in the internalcontrolsandreporting as well.

Note 44Duringtheyearended31stMarch2020,DepartmentofInvestmentandPublicAssetManagement(DIPAM),GovernmentofIndiavideitsthreeseparatelettersno.F.No.7/4/2018-DIPAM-II-Adated8thJanuary2020hasappointedthefollowingrespectivelyasTransactionAdvisor,LegalAdvisorandAssetValuerforStrategicDisinvestmentofSCI: i) M/s.RBSACapitalAdvisorsLLP; ii) M/s.Luthra&LuthraPartners;and iii) M/s.ProtocolInsuranceSurveyors&LossAssessorsPvt.Ltd.InformationsoughtbythethreeAdvisorsisbeingfurnishedbySCI.

Note 45TradePayables,TradeReceivablesandDepositsaresubject toconfirmationand reconciliation.During theyear, letters forconfirmationofbalanceshavebeensenttovarioustradepayableandtradereceivablepartiesbytheCompanyandthesameareunderreconciliationwherever replies have been received. The management, however, does not expect any material changes on reconciliation.

Note 46TheBoardofDirectors,initsmeetingheldonMay29,2020,hasrecommendedadividendof`0.75/-perequityshareoffacevalueof` 10/-eachforthefinancialyearendedMarch31,2020.TheequitydividendissubjecttotheapprovaloftheshareholdersattheensuingAnnualGeneralMeetingandhasnotbeenincludedasliabilityinthesefinancialstatements.Thetotaloutflowonthisaccountisestimatedtobe `3493lakhs.

Note 47The figures of previous year have been regrouped or rearrangedwherever necessary to conform to current year's presentation as perScheduleIII(DivisionII)totheCompaniesAct2013.

Note 48: Companies considered for consolidationThefollowingjointventures/subsidiaryhavebeenconsideredforthepurposeofconsolidation:-

Name Nature of Interest Description of Interest

Country of Incorporation

Percentage of Interest As on 31.03.20 (As on 31.03.19)

1.IndiaLNGTransportCompany(No.1)Ltd. Jointventure Equity Malta 29.08%(29.08%)



4.IndiaLNGTransportCompany(No.4)PvtLtd. Jointventure Equity Singapore 26.00%(26.00%)

5.Inland&CoastalShippingLimited Subsidiary Equity India 100.00%(100%)

TheGovernmentofIndiainmeetingofcabinetheldon02.04.2013approvedtheproposalfordissolutionofIranoHindShippingCompany




(IHSC)andsplitting theassets/liabilitiesof IHSCbetweenJointVenturepartners shall beundertaken. IHSC is a joint venturecompanyincorporatedinIranonwhichsanctionhasbeenimposedbyUnitedNationsOrganisation(UN).SubstantiveeffortsaremadetoeventuallydissolvetheJVwhichisdependingongeopoliticalenvironmentandsanctionsimposedbyUNwhichiscompletelybeyondSCI'scontrol.SCIshallremaincommittedbythedecisionofcabinetandthereforeismakingalleffortsfordissolutionofJV.Further,GovernmentofIndiavide letterdated08thMay2018hasadvisedSCI togoaheadwith thedissolutionof IHSC.Therefore IHSChasbeenexcluded fromtheconsolidation.SAILSCIShippingPvtLtd.hasbeenexcludedfromtheconsolidationproceduresasthejointventureisheldfordisposal..

Note 49: Interest in Other Entities(a) Information about subsidiaries TheGrouphasthefollowinginvestmentsinsubsidiaries:

Sl. No. Name of the subsidiary Principal place

of businessPrincipal activities

Proportion (%) of ownership

As at 31st March, 2020


1 INLAND&COASTALSHIPPINGLTD India InlandWaterways 100% 100%

(b) Interest in associate and joint ventures(i) SetoutbelowaretheassociatesandjointventuresoftheGroupasat31March2020which,intheopinionofthedirectors,arematerialtotheGroup.Theentitieslistedbelowhavesharecapitalconsistingsolelyofequityshares,whicharehelddirectlybytheGroup,andtheproportionofownershipinterestsheldequalsthevotingrightsheldbytheGroup.

Sl. No. Name of the entity

Principal place of business

Principal activities

Proportion (%) of ownership Carrying Value

As 31st March, 2020


As at 31st

March, 2020

As at 31st

March, 2019

1 IndiaLNGTransportCo.(No.1)Ltd. Malta LNGCarriers 29.08% 29.08% 11,644 9,930

2 IndiaLNGTransportCo.(No.2)Ltd. Malta LNGCarriers 29.08% 29.08% 11,542 9,910

3 IndiaLNGTransportCo.(No.3)Ltd. Malta LNGCarriers 26.00% 26.00% - -

4 IndiaLNGTransportCo.(No.4)PvtLtd. Singapore LNGCarriers 26.00% 26.00% 6,287 7,732

5 IranoHindShippingCo.Ltd. Iran Shipping 49.00% 49.00% - -

6 SailSCIPvt.Ltd India Shipping 50.00% 50.00% 7 7

(ii) Summarised financial information for associates and joint venturesThe table below provide summarised financial statements for those joint ventures and associates that arematerial to the Group. TheinformationdisclosedreflectstheamountspresentedinthefinancialstatementsoftherelevantassociatesandjointventuresandnotSCI'sshare of those amounts.

Summarised Balance Sheet

ILT 1 ILT 2 ILT 3 ILT 4

As at 31st

March, 2020

As at 31st

March, 2019

As at 31st

March, 2020

As at 31st

March, 2019

As at 31st

March, 2020

As at 31st

March, 2019

As at 31st

March, 2020

As at 31st

March 2019

Current Assets

CashandCashEquivalents 13,807 11,804 11,581 11,118 10,949 11,563 16,761 13,362

Other Assets 5,680 2,749 3,727 1,721 4,607 1,509 2,454 2,265




Summarised Balance Sheet


As at 31st

March, 2020

As at 31st

March, 2019

As at 31st

March, 2020

As at 31st

March, 2019

As at 31st

March, 2020

As at 31st

March, 2019

As at 31st

March, 2020

As at 31st

March 2019

Total Current Assets 19,487 14,553 15,308 12,839 15,556 13,072 19,215 15,627

Total Non - Current Assets 86,315 83,567 92,321 85,680 139,022 130,545 149,357 140,645

Current Liabilities

FinancialLiabilities(excl.tradepayables) 13,425 13,781 13,365 13,612 81,251 70,207 4,275 5,672

OtherLiabilities 3,655 3,011 3,088 931 6,278 5,965 4,083 4,299

Total Current Liabilities 17,080 16,792 16,453 14,543 87,529 76,172 8,358 9,971

Non-CurrentLiabilities

FinancialLiabilities(excl.tradepayables) 45,471 47,429 48,094 50,162 78,317 77,780 114,864 109,311

OtherLiabilities 3,209 (247) 3,394 (261) 2,412 3,056 21,171 7,252

Total Non-Current Liabilities 48,680 47,182 51,488 49,901 80,729 80,836 136,035 116,563

NET ASSETS 40,042 34,146 39,688 34,075 (13,680) (13,391) 24,179 29,738

(iii) Unrecognised losses of joint ventures carried forward

Particulars

Accumulated as on 31.03.2020

For Year Ended 31.03.2020

Accumulated as on 31.03.2019

For Year Ended 31.03.2019

Loss/(Profit) OCI Loss/

(Profit) OCI Loss/(Profit) OCI Loss/

(Profit) OCI

IndiaLNGTransportCo.(No.1)Ltd. - - - - - - - -

IndiaLNGTransportCo.(No.2)Ltd. - - - - - - - -

IndiaLNGTransportCo.(No.3)Ltd. - - - - 1,877 1,605 (186) (157)

IndiaLNGTransportCo.(No.4)PvtLtd. - - - - - - - -

Negative amount reflect previous year losses recognised during the year due to profit earned or further investment in the joint venture.(iv) Reconciliation to carrying amounts

Particulars


31st March, 2020

31st March, 2019

31st March, 2020

31st March, 2019

31st March, 2020

31st March, 2019

31st March, 2020

31st March, 2019

OpeningNetassets 34,145 25,537 34,075 24,800 (13,391) (14,713) 29,737 25,006

Profitfortheyear 6,747 7,313 6,701 8,051 653 717 4,654 5,633

OtherComprehensiveIncome (850) 1,295 (1,090) 1,226 (941) 605 (10,213) (903)

Share capital issued during the year - - - - - - - -

Closing Net Assets 40,042 34,145 39,688 34,075 (13,680) (13,391) 24,179 29,737






Particulars


31st March, 2020

31st March, 2019

31st March, 2020

31st March, 2019

31st March, 2020

31st March, 2019

31st March, 2020

31st March, 2019

Groups share in % 29.08% 29.08% 29.08% 29.08% 26.00% 26.00% 26.00% 26.00%

Groups share in INR 11,644 9,930 11,542 9,910 (3,557) (3,482) 6,287 7,732

Carrying Amount* 11,644 9,930 11,542 9,910 - - 6,287 7,732

*AsperIndAS28lossesarerecognisedtotheextentofinvestmentmade.(v) Summarised statement of profit and loss

Particulars

ILT 1 ILT 2 ILT 3 ILT 431st

March, 2020

31st March, 2019

31st March, 2020

31st March, 2019

31st March, 2020

31st March, 2019

31st March 2020

31st March, 2019

Revenue 17,375 17,152 17,107 18,760 18,673 18,800 18,884 19,550Other Income 89 119 100 125 18 25 0 0DepreciationandAmmortisation 4,670 4,069 4,912 5,060 5,150 5,044 8,085 0Interest Expense 2,806 3,320 2,886 3,405 8,958 9,731 7,128 6,924Income tax expense 0 6 0 6 0 6 0 0Other Expense 3,242 2,563 2,707 2,363 3,930 3,328 (983) 6,993Profit for the year 6,747 7,313 6,701 8,051 653 717 4,654 5,633OtherComprehensiveIncome (850) 1,295 (1,090) 1,226 (941) 605 (10,213) (903)Total Comprehensive Income 5,897 8,608 5,611 9,277 (288) 1,322 (5,558) 4,730

Note 50: Additional Information required by Schedule III (Division II)

Information under Companies Act 2013Net Assets (total

assets minus total liabilities)

Share in profit/lossShare in other comprehensive

income

Share in total comprehensive

income

Particulars

As % of consoli-

dated net assets

Amount (` in lacs)

As % of consoli-

dated profit/

loss

Amount(` in lacs)

As % of consoli-

dated other compre-hensive income

Amount(` in lacs)

As % of consol-idated total

compre-hensive income

Amount(` in lacs)

ParentThe Shipping Corporation of India Ltd.31stMarch2020 97% 722,454 90% 30,235 -41% 1,462 106% 31,69731stMarch2019 96% 690,754 195% (12,199) 53% 564 224% (11,635)Joint Ventures(Investment as per equity method)IndiaLNGTransportCo.(No.1)Ltd.31stMarch2020 2% 11,644 6% 1,962 7% (247) 6% 1,71531st March2019 1% 9,931 -34% 2,127 35% 377 -48% 2,503IndiaLNGTransportCo.(No.2)Ltd.31stMarch2020 2% 11,542 6% 1,949 9% (317) 5% 1,63231stMarch2019 1% 9,910 -37% 2,341 33% 356 -52% 2,697


Information under Companies Act 2013Net Assets (total

assets minus total liabilities)

Share in profit/lossShare in other comprehensive

income

Share in total comprehensive

income

Particulars

As % of consoli-

dated net assets

Amount (` in lacs)

As % of consoli-

dated profit/

loss

Amount(` in lacs)

As % of consoli-

dated other compre-hensive income

Amount(` in lacs)

As % of consol-idated total

compre-hensive income

Amount(` in lacs)

IndiaLNGTransportCo.(No.3)Ltd.31st March2020 0% (3,557) -5% (1,707) 51% (1,849) -12% (3,557)31st March2019 0% - 0% - 0% - 0% - IndiaLNGTransportCo.(No.4)PvtLtd.31stMarch2020 1% 6,287 4% 1,210 74% (2,655) -5% (1,445)31stMarch2019 1% 7,732 -23% 1,465 -22% (234) -24% 1,231SubsidiaryINLAND&COASTALSHIPPINGLTD31stMarch2020 0% (5) 0% (0) 0% - 0% (0)31stMarch2019 0% (4) 0% 0 0% - 0% 0TOTAL31st March 2020 100% 748,365 100% 33,648 100% -3,607 100% 30,041 31st March 2019 100% 718,323 100% (6,266) 100% 1,062 100% (5,203)

For Note no. 1 to 50 of Consolidated Financial Statements



FR. No. 109208W


FR. No. 103523W/W100048



CA G SankarPartner








GLOSSARYAboardReferring to cargo being put, or laden, onto a means of conveyance.

Act of GodAnactbeyondhumancontrol,suchaslightning,floodorearthquake.

ATDActualTimeofDeparture.

Ad ValoremIn proportion to the value: A phrase applied to certain freight or customs duties levied ongoods, property, etc. set as a percentage of their value.

Aircraft ContainerAunitloaddevice(ULD)whichlinksdirectlywiththeairplanecargohandlingandrestraint system.

Aframax TankerAvesselof70,000to120,000DWTcapacity.ThelargesttankersizeintheAFRA(average freight rate assessment) tanker rate system.

Contract of AffreightmentAnagreementbyanoceancarriertoprovidecargospaceonavesselataspecifiedtimeandforaspecifiedpricetoaccommodateanexporterorimporter.

AftMovement toward the stern (back end) of a ship.

Agency TariffA tariff published by an agent on behalf of several carriers.

Agent Apersonauthorizedtotransactbusinessforandinthenameofanotherpersonorcompany.Typesofagentsare:(1)brokers(2)commissionmerchants(3)residentbuyers(4)salesagents(5)manufacturer’srepresentatives.

AFRA : Average Freight Rate AssessmentAFRAwascommissionedoriginally byoneof the oilmajors as a sophisticatedindicator of freighting values for its affiliated companies, AFRA results havebeen published by the London Tanker Brokers’ Panel continuously since 1954.Theyareuniqueinbeingtheonlyassessmentsoftheirkindtoberecognisedbytaxationauthoritiesasanacceptablemethodofchargingfreightbetweenaffiliatedcompaniesofmulti-nationalgroups.AFRAresultsarealsousedbyoiltradersandgovernment agencies to assess the freight element in various types of oil sale agreements.AFRAresultsarepublishedonthefirstbusinessdayofeachmonthandcoverfivedeadweightgroups:Mediumrange-25,000-44,999(long)tonsdwtLargerange1-45,000-79,999(long)tonsdwtLargerange2-80,000-159,999(long)tonsdwtVLCC-160,000-319,999(long)tonsdwtULCC-320,000-549,999(long)tonsdwtIneachofthefivegroups,tonnageisdividedintothreecategories:LongtermchartersShort term chartersSingle voyage charters

AHTSV : Anchor Handling, Towing & Supply VesselAHTSV’saremainlybuilttohandleanchorsforoilrigs,towthemtolocation,anchorthemupand,inafewcases,serveasanEmergencyRescueandRecoveryVessel(ERRV).Theyarealsousedtotransportsuppliestoandfromoffshoredrillingrigs.

All InclusiveThe total price to move cargo from origin to destination, inclusive of all charges.

AlongsideAphrase referring to the side of a ship.Goods delivered “alongside” are to beplaced on the dock or barge within reach of the transport ship’s tackle so that they can be loaded.

All RiskAllRisksCoverage,atypeofmarine insurance, isthebroadestkindofstandardcoverage, but excludes damage caused by war, strikes, and riots.

AllotmentAtermusedtodescribeblockedspacebyairlinesonbehalfofforwarders/shippers.

AssignmentA term commonly used in connection with a bill of lading. It involves the transfer of rights, title and interest in order to assign goods by endorsing the bill of lading.

AsternBehindavessel–Moveinareversedirection.

ATDNSHINCAnytimeDayorNightSundays&HolidaysIncluded.Acharteringtermreferringtowhen a vessel will work.

AthwartshipsA direction across the width of a vessel.

Automated Identification System (AIS)It isasystemusedbyshipsandVesselTrafficService (VTS)principally for theidentification and the locating of vessels. AIS provides a means for ships toelectronically exchange ship data including: identification, position, course, andspeed,withothernearbyshipsandVTSstations.

BAF (Bunker Adjustment Factor)Anadjustmentinshippingchargestooffsetpricefluctuationsinthecostofbunkerfuel.

Bill of Lading (B/L)Bills of lading are contracts between the owner of the goods and the carrier. There are two types. A straight bill of lading is nonnegotiable. A negotiable or shipper’s order bill of lading can be bought, sold, or traded while goods are in transit and is used for many types of financing transactions. The customer usually needs the original or a copy as proof of ownership to take possession of the goods.

Barrel (BBL)Atermofmeasurereferringto42gallonsofliquidat600degrees.

Baltic Dry IndexTheBalticDryIndex(BDI)isanumber(inUSD)issueddailybytheLondon-basedBaltic Exchange. Not restricted to Baltic Sea countries, the index provides “anassessmentofthepriceofmovingthemajorrawmaterialsbysea.Takingin23shipping routesmeasuredona timecharterbasis, the indexcoversHandysize,Supramax,PanamaxandCapesizebulkcarrierscarryingarangeofcommoditiesincluding coal, iron ore and grain.

BeamThe width of a ship.

BIMCOTheBalticandInternationalMaritimeCouncil,theworld’slargestprivateshippingorganization.

Bonded WarehouseTheCustomsServiceauthorizesbondedwarehousesforstorageormanufactureofgoodsonwhichpaymentofdutiesisdeferreduntilthegoodsentertheCustomsTerritory. The goods are not subject to duties if re-shipped to foreign points.

BowThe front of a vessel.

Break Bulk (B/B)Forconsolidatedairfreight,itismovedunderoneMAWBandeachconsignmentdesignated to specific consigneeor recipient is under oneHAWB.When freightforwarder receives the consolidated cargo from carrier, they will break the consolidation apart per HAWB then proceed customs clearance along withassociatedshippingandimportdocuments.SuchBreak-Bulkisnormallyhandledby airlines or their contracted ground handling agent.

Breakbulk VesselAgeneralcargovesseldesignedtoefficientlyhandleun-containerisedcargo.Vesselsare usually self-sustaining in that they have their own loading and unloading machinery.


BulkerA bulk carrier, bulk freighter, or bulker is a merchant ship specially designed to transport unpackaged bulk cargo, such as grains, coal, and cement, in its cargo holds.

BunkeringTheactorprocessofsupplyingashipwith fuel.Bunkerquality ishighlyvariableacross theworldandLRprovidesshipoperatorsandmanagerswith independentvarificationoffuelquality.

CabotageWater transportation term applicable to shipments between ports of a nation;commonly refers to coastwise or intercoastal navigation or trade. Many nations, includingtheUnitedStates,havecabotagelawswhichrequirenationalflagvesselsto provide domestic interport service.

CAF (Currency Adjustment Factor)A freight surcharge or adjustment factor imposed by an international carrier to offset foreign currency fluctuations. In some cases an emergency currency adjustmentfactor(ECAF)maybeappliedwhenachargeorratehasbeenoriginallypublishedinacurrencythatisexperiencingsustainedorrapiddecline.TheCAFischargedasapercentage of the freight.

Capesize VesselA dry bulk vessel above 80,000dwt or whose beam precludes passage via thePanamaCanalandthusforcesthemtopassaroundCapeHornortheCapeofGoodHope.

Clean Bill of LadingA receipt for goods issued by a carrier with an indication that the goods were received in apparent good order and condition, without damages or other irregularities.

ClassificationThe development, implementation an maintenance of standards (Rules) for the design, construction and operation of ships and offshore units. Compliancewiththese standards ensures assignment and maintenance of class.

Classification SocietyAnorganizationmaintainedforthesurveyingandclassingofshipssothatinsuranceunderwritersandothersmayknowthequalityandconditionofthevesselsofferedfor insurance or employment.

Commercial InvoiceThe commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods for the assessment of customs duties and are also used to prepare consular documentation. Governmentsusingthecommercialinvoicetocontrolimportsoftenspecifyitsform,content, number of copies, language to be used, and other characteristics.

ConsigneeThepersonorfirmnamedinafreightcontracttowhomgoodshavebeenconsignedorturnedover.Forexportcontrolpurposes,thedocumentationdifferentiatesbetweenan intermediate consignee and an ultimate consignee.

ConsignmentDeliveryofmerchandisefromanexporter(theconsignor)toanagent(theconsignee)under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.

ConsolidationIn order to handle small lot of consignment efficiently and competitively, freightforwarder usually put many consignments into one lot then tender to carrier for forwarding. In this case, each consignment will be shipped with one HAWBrespectivelyandallofthemwillbeunderonemasterAWB.

ContainerA truck trailer body that can be detached from the chassis for loading into a vessel, arailcarorstacked inacontainerdepot.Containersmaybeventilated, insulated,refrigerated, flat rack, vehicle rack, open top, bulk liquid or equippedwith interiordevices.Acontainermaybe20feet,40feet,45feet,48feetor53feetinlength,8’0”or8’6”inwidth,and8’6”or9’6”inheight.

Cost and Freight (C&F)CostandFreight (CFR) toanamedoverseasportof import.Under this term, theseller quotes aprice for thegoods that includes the cost of transportation to thenamed point of debarkation. The cost of insurance is left to the buyer’s account. (Typicallyusedforoceanshipmentsonly.CPT,orcarriagepaidto, isatermusedfor shipment by modes other than water.) Also, a method of import valuation that includes insurance and freight charges with the merchandise values.

Cost, Insurance and Freight (CIF)Cost, insurance,and freight (CIF) toanamedoverseasportof import.Under thisterm,thesellerquotesapriceforthegoods(includinginsurance),alltransportation,and miscellaneous charges to the point of debarkation for the vessel. (Typically used foroceanshipmentsonly.CIP,orcarriageandinsurancepaidto,isatermusedforshipment by modes other than water.)

Dangerous GoodsCommoditiesclassifiedbyIATAaccordingtoitsnatureandcharacteristicintermsoftheeffectofitsdangertocarrier’sflyingsafety.

*Deadweight Tonnage (DWT)The maximum weight of cargo and stores that a ship can carry.

Deadweight Tonnage (DWT)Thenumberof tonsof2,240pounds thatavesselcan transportofcargo,storesand bunker fuel. It is the difference between the number of tons of water a vessel displaces“light”andthenumberoftonsitdisplaceswhensubmergedtothe“loadline.”Anapproximateconversionratiois1NT=1.7GTand1GT=1.5DWT.

DemurrageApenaltychargeagainstshippersorconsigneesfordelayingthecarrier’sequipmentor vessel beyond the allowed free time. The free time and demurrage charges are set forth in the charter party or freight tariff.

DespatchAn incentive payment paid by the vessel to the charterer for loading and unloading the cargo faster than agreed. Usually negotiated only in charter parties. Also called“dispatch.”

Directorate General of Shipping (DGS)The role of Indian Maritime Administration has been well brought out in the Indian MerchantShipping1958.TheMerchantShippingAct is the legislation in India formaritime development and effective enforcement of standards. The DirectorateGeneralofShippingastheexecutivearmfullyadministersthislegislation.

Dimensional Weight

Alsocalledmeasurementweight.Thisisthesizeofconsignmentcalculatedbytotalsquarefeetby6000.Carrierchargeforfreightbasedonthedimensionalweightoractual gross weight whichever is higher.

Direct ShipShipwithoutconsolidationandunderoneMAWBienon-consolidation.

D.O.E : Direct Operating Expenses:Direct Operating Expenses are voyage related expenses. Whenever a vesselundertakes a voyage, steaming from one port to another port, expenses incurred suchasBunker(fuel),PortDues,Freshwater,stevedoringCharges,AgencyfeesandothervoyagerelatedexpensesarecalledDirectOperatingExpenses.

G.O.P. (Gross Operating Profit)

G.O.P.=Earnings/(Freight)–D.O.E

N.O.P. (Net Operating Profit)=G.O.P.–I.O.E.

EDIEDI,ElectronicDataInterchangeforAdministration,Commerce,andTransportation,isaninternationalsyntaxusedintheinterchangeofelectronicdata.CustomsusesEDItointerchangedatawiththeimportingtradecommunity.

ETAEstimatedTimeofArrival.Then,Itnormallytakes3hoursforcarrierstoBreakBulkthenreadytobepickedupbyforwardersalongwithcustomsreleasenotification.

GLOSSARY


GLOSSARYETDEstimatedTimeofDeparture.Thecut-offtimeforcarriers’cargoramphandlingisnormallytwohoursaheadofETD.However,thefreightforwarders’consolidationcut-off time may vary depending on each forwarder’s operations respectively.

FCL or CYFullContainerLoad,alsoknownasCY.CYistheabbreviationofContainerYard.When the termCY toCY, itmeans full container loadall theway fromorigin todestination.

Federal Maritime CommissionTheFMCisanindependentagencywhichregulatesoceanbornetransportationintheforeigncommerceandinthedomesticoffshoretradeoftheUnitedStates.

Flat Rack ContainersEspecially for heavy loads and over-dimensional cargo.Containers do not havesides or a top. This allows easy fork-lift and crane access.

Fore and AftThe direction on a vessel parallel to the center line.

Forty-Foot Equivalent Unit (FEU)FEUisameasureofaship’scargo-carryingcapacity.OneFEUmeasuresfortyfeetby eight feet by eight feet -- the dimensions of a standard forty-foot container. An FEUequalstwoTEUs.

Free Alongside ShipFreeAlongsideShip,FAS,atanamedportofexport.UnderFAS,thesellerquotesa price for the goods that includes charges for delivery of the goods alongside a vessel at the port of departure. The seller handles the cost of unloading and wharfage;loading,oceantransportation,andinsurancearelefttothebuyer.FASisalso a method of export and import valuation.

Free Carrier (FCA)FreeCarrier,FCA,toanamedplace.Thistermreplacestheformer“FOBnamedinlandport” todesignate theseller’sresponsibility for thecostof loadinggoodsat the named shipping point. It may be used for multimodal transport, container stations, and any mode of transport, including air.

Free On Board (FOB)Commonpricetermusedininternationaltrademeaningseller’sresponsibleforthecost of goods is to the point of loading it to the vessel deck or aircraft loading deck. The risk of loss of or damage to the goods is transferred from the seller to the buyer whenthegoodshavebeensodelivered.FOBnormallycomeswithportofloadingeither airport or sea port.

Freight Carriage ... and Insurance paid toThis term is thesameas“Freight/CarriagePaid to ...”butwith theaddition thatthe seller has to procure transport insurance against the risk of loss of damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

Freight Carriage ... paid toLikeC&F,“Freight/Carriagepaidto...”meansthatthesellerpaysthefreightforthe carriage of the goods to the named destination. However, the risk of loss of or damage to the goods, as well as of any cost increases, is transferred from the sellertothebuyerwhenthegoodshavebeendeliveredintothecustodyofthefirstcarrier and not at the ship’s rail. The term can be used for all modes of transport includingmulti-modaloperationsandcontaineror“rollon-rolloff”trafficbytrailerand ferries. When the seller has to furnish a bill of lading, waybill or carrier’sreceipt,hedulyfulfillsthisobligationbypresentingsuchadocumentissuedbytheperson with whom he has contracted for carriage to the named destination. (Also see incoterms)

Freight ForwarderAn independent business which handles export shipments for compensation. At the requestoftheshipper,theforwardermakestheactualarrangementsandprovidesthe necessary services for expediting the shipment to its overseas destination. The forwarder takes care of all documentation needed to move the shipment from origin to destination, making up and assembling the necessary documentation for submission to the bank in the exporter’s name. The forwarder arranges for

cargo insurance, makes the necessary overseas communications, and advises the shipperonoverseasrequirementsofmarkingandlabeling.

Freight for All Kinds (FAK)FAKisashippingclassification.GoodsclassifiedFAKareusuallychargedhigherrates than those marked with a specific classification and are frequently in acontainer which includes various classes of cargo.

*Gross Tonnage (GT)Grosstonnageisafunctionofthemouldedvolumeofallenclosedspacesoftheship. It forms tha basis on which manning rules and safety regulations are applied, and registration fees determined.

Gross Tonnage (GT)Appliestovessels,nottocargo,(0.2+0.02log10V)whereVisthevolumeincubicmeters of all en¬closed spaces on the vessel. Since 1994, it replaces “GrossRegisteredTonnage.”Anapproximateconversionratiois1NT=1.7GTand1GT=1.5DWT.

Handysize Mostusuallyreferstoadrybulkvesselwithdeadweightofupto50,000tonnes.This allows the ships to enter smaller ports to pick up cargoes. Vessels ofdeadweightofabove35,000tonnesarereferredtoasHandymaxbulkers(typically35,000-50,000tonsdeadweight).

Handymax and Supramax are naval architecture terms for a bulk carrier, in a series thatiscalledHandysizeclass.HandysizeclassconsistsofSupramax(50,000to60,000DWT),Handymax(40,000to50,000DWT),andHandy(<40,000DWT).The ships are used for less voluminous cargos, even allowing for combining different cargos in different holds.

I.M.D.G. CodeInternationalMaritimeDangerousGoodsCode.The regulationspublishedby theIMOfortransportinghazardousmaterialsinternationally.

IncotermsMaintainedbytheInternationalChamberofCommerce(ICC),thiscodificationoftermsisusedinforeigntradecontractstodefinewhichpartiesincurthecostsandatwhatspecificpointthecostsareincurred.(alsoseeincotermsection)

I.O.E : Indirect Operating ExpensesIndirect Operating Expenses are those expenses incurred by the owner of the vessel towards and includes maintenance, stores, spares, repairs, insurance, victualling and other management overheads.

Indian Register of Shipping (IRS)TheIndianRegisterofShipping(IRS)isaninternationallyrecognized,independentshipclassificationsocietywhichwasfoundedinIndiain1975.In1991,theIRSwasadmittedasanAssociateMemberoftheInternationalAssociationofClassificationSocieties(IACS)whichisthemajorinternationalbodyofclassificationsocieties.ItismanagedbyaCommitteeofManagementwhichhasrepresentativesfromeachof the industry segments that use its services. These include representatives from the maritime industries, underwriters, general engineering, government agencies and defense services. They are further supported by sub-committees such as the TechnicalCommittee,theClassificationSub-committee,theQualitySub-committeeand the Research Advisory Sub-committee for all operational aspects of IRS which cover marine, offshore and industrial services.

Intermediate ConsigneeAn intermediate consignee is the bank, forwarding agent, or other intermediary (if any) that acts in a foreign country as an agent for the exporter, the purchaser, or the ultimate consignee, for the purpose of effecting delivery of the export to the ultimate consignee.

IntermodalMovement of goods by more than one mode of transport, ie. airplane, truck, railroad and ship.

International Association of Classification Societies (IACS)A membership organisation that contributes to maritime safety and regulation throughtechnicalsupport,complianceverificationandresearchanddevelopment.


GLOSSARYMorethan90%oftheworld’scargo-carryingtonnageiscoveredbytheclassificationrulesandstandardssetbythe13membersocietiesofIACS.

International Maritime Organisation (IMO)The specialised agency of the United Nationswith responsibility for safety andsecurity at sea and the prevention of marine pollution from ships. Established in 1948, IMO firstmet in 1959 and is the only United Nations agencywith itsheadquartersinLondon.

International Ship and Port Security Code (ISPS)ItisanamendmenttotheSafetyofLifeatSea(SOLAS)Convention(1974/1988)on minimum security arrangements for ships, ports and government agencies. Having come into force in 2004, it prescribes responsibilities to governments,shipping companies, shipboard personnel, and port/facility personnel to “detectsecurity threats and take preventative measures against security incidents affecting shipsorportfacilitiesusedininternationaltrade.”

Irrevocable Letter of CreditAletterofcreditinwhichthespecifiedpaymentisguaranteedbytheissuingbankif all terms and conditions are met by the drawee. It is as good as the issuing bank.

ISO (Internation Organization for Standardization)An independent, non-governmental standard-setting body composed of representativesfrom165nationalstandardsorganisations.Internationalstandardsgive world-class specirfications for products, services and systems to ensurequality,safetyandefficiency.Theyareinstrumentalinfacilitatinginternationaltrade.

ISO 9001The international management systems standard concerned with qualitymanagement – what an organisation does to ensure customer need and expectationsandapplicable regulatory requirements, andcontinually to improveitsqualityperformance.

KamsarmaxA Kamsarmax type bulk carrier is basically a 82,000 dwt Panamax with anincreasedLOA=229m(forPortKamsarinEquatorialGuinea).

LCLLessthanContainerLoad,consolidatedcontainerload.

LDT (Light Displacement Tonnage)LightDisplacementTon(Tonnage).It isalsocalledDisplacementLightWeightofthevesselwithoutstores,bunker,freshwater,cargoandpassengers.Usuallyusedfor vessels for scrapping.

LNG (Liquefied Natural Gas)Naturalgaschangestoaliquidat–162C,creatingLNG.Whenliquefied,thegasis reduced to1/600thof its original volumemaking it economic to transport inspecially designed

LNGC(LNGCarrier)Anocean-goingshipspeciallyconstructedtocarryLNGintanksat-160C.CurrentaveragecarryingcapacityofLNGsis125,000cubicmetres.ManyLNGCspresently under construction or onorder are in the210,000–215,000cubic metre range.

Liquefied Petroleum Gas (LPG)Not to be confused with LNG, LPG is often called ‘propane’ as it is made ofvarious mixtures of propane and other similar types of hydrocarbon gases. These hydrocarbonsaregasesat rooms temperature,but turn to liquidwhen theyarecompressed.LPGisstoredinspecialtanksthatkeepitunderpressure,soitstaysa liquid.While thedistributionofLNGrequiresheavy infrastructure investments,LPGismoreeasilytransported.

Load LineThe waterline corresponding to the maximum draft to which a vessel is permitted to load, either by freeboard regulations, the conditions of classification, or theconditions of service.

LR1 :LongRange1,mostlyrefers to theproduct tankerwithDWTin therangebetween55000to79999tons.

LR2 :LongRange2,mostlyrefers to theproduct tankerwithDWTin therangebetween80000-159999tons.

Marine Cargo InsuranceBroadly,insurancecoveringlossof,ordamageto,goodsatsea.Marineinsurancetypically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire,shipwreck, piracy, and various other causes. Three of the most common types of marineinsurancecoverageare“freeofparticularaverage”(f.p.a.),“withaverage”(w.a.),and“AllRisksCoverage.”

Maritime Labour ConventionTheinternationalLabourOrganization’sConvention,knownas‘MLC,2006’cameinto force inAugust2013,effectivelybecomingbinding in international law. It iscurrentlyratifiedby56ILOmemberstatesresponsibleforregulatingconditionsforseafarersonmorethan80%oftheworld’sgrosstonnageofships.Itestablishesminimum working and living standards on those ships.

MR :MediumRangeTanker,mostlyreferstotheproducttankerwithDWTintherangebetween25000-54999tons.

Net Tonnage (NT)Thereplacement,since1994,for“NetRegisterTonnage.”Theoreticallythecargocapacity of the ship. Sometimes used to charge fees or taxes on a vessel. The formula is(0.2+0.02 log10(Vc))Vc (4d/3D)2,whereVc is thevolumeofcargoholds,Disthedistancebetweenship’sbottomandtheuppermostdeck,disthedraught)“Ton”isfiguredasa100cubicfootton.Anapproximateconversionratiois1NT=1.7GTand1GT=1.5DWT.

Non–Vessel Operating Common Carrier (NVOCC)A cargo consolidator in ocean trades who will buy space from a carrier and sub–sellittosmallershippers.TheNVOCCissuesbillsoflading,publishestariffsandotherwise conducts itself as an ocean common carrier, except that it will not provide the actual ocean or intermodal service.

O.E.C.D.OrganizationofEconomicCooperationandDevelopment,headquartered inPariswith membership consisting of the world’s developed nations.

On BoardAnotationonabillofladingthatcargohasbeenloadedonboardavessel.Usedto satisfy the requirements of a letter of credit, in the absence of an expressrequirementtothecontrary.

On DeckA notation on a bill of lading that the cargo has been stowed on the open deck of the ship.

P&IAbbreviationfor“ProtectionandIndemnity,”aninsuranceterm.

Panamax VesselThe largest size vessel that can traverse the Panama Canal. Currentmaximumdimensionsare:Length294.1meters (965 feet);width32.3meters (106 feet);draft12.0meters(39.5feet)intropicalfreshwater;height57.91meters(190feet)above the water.

PODProofOfDelivery,oracargo/packagereceiptwiththesignatureofrecipient.Thisterm has been widely used in courier and express industry and also gaining more attention and implementation at air cargo industry..

Packing ListAshippingdocumentissuedbyshippertocarrier,Customsandconsigneeservingthe purposes of identifying detail information of package count, products count, measurement of each package, weight of each package, etc.

PortHarborwithpiersordocks.Leftsideofashipwhenfacingforward.

Port state controlThe inspection of foreign ships in national ports to verify that the condition of the


GLOSSARYshipanditsequipmentcomplieswiththerequirementsofinternationalconventionsand that the ship is manned and operated in compliance with these rules.

Pro Forma InvoiceAn invoice provided by a supplier prior to the shipment of merchandise, informing thebuyerofthekindsandquantitiesofgoodstobesent,theirvalue,andimportantspecifications (weight, size, and similar characteristics). When an importerapplies forLetterofCreditas themeansofpayment,aProForma Invoice fromthebeneficiaryofsuchLetterofCredit,usuallytheexporter,isrequiredbytheL/Cissuing bank.

Project CargoThis is a term normal referred to when shipping cargo air or sea, which does not fall withinstandardmethods.Ieover-height,oroversizecargowhichrequiresspecialequipmentandhandle.

PSVAPlatformsupplyvessel(oftenabbreviatedasPSV)isashipspeciallydesignedtosupplyoffshoreoilplatforms.Theseshipsrangefrom20to100metersinlengthand accomplish a variety of tasks. The primary function for most of these vessels is transportation of goods and personnel to and from offshore oil platforms and other offshore structures

Roll-on, Roll-off (RORO)A type of ship designed to load and discharge cargo which rolls on wheels or tracks.

Shipping MarkThe letters, numbers or other symbols placed on the outside of cargo to facilitate identification.

Shipping WeightShipping weight represents the gross weight in kilograms of shipments, including the weight of moisture content, wrappings, crates, boxes, and containers (other than cargo vans and similar substantial outer containers).

StarboardThe right side of a ship when facing the bow.

SternThe end of a vessel. Opposite of bow.

StevedoreIndividualorfirmthatemployslongshoremenandwhocontractstoloadorunloadthe ship.

Suezmax TankerSuezmaxisanavalarchitecturetermforthelargestshipmeasurementscapableof transiting theSuezcanal ina ladencondition,and isalmostexclusivelyusedin reference to tankers. Since the canal has no locks, the only serious limiting factors are draft (maximum depth belowwaterline) and height due to the SuezCanalBridge.Thecurrentchanneldepthofthecanalallowsforamaximumof20.1m(66ft)ofdraft.ThetypicaldeadweightofaSuezmaxshipisabout160,000tons.

SupramaxBulkcarrierswithacapacitybetween50,000and60,000dwt.These‘bulkers’arewell suited for small ports with length and draught restrictions, or ports lacking transshipment infrastructure.

Tare WeightThe weight of a ULD and tie down materials without the weight of the goods it contains.

Through Bill of LadingA single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation.

Time Charter (TC)A timecharter is thehiringof a vessel for a specificperiodof time; theownerstill manages the vessel but the charterer selects the ports and directs the vessel where to go. The charterer pays for all fuel the vessel consumes, port charges, commissions, and a daily hire to the owner of the vessel.

TransshipmentTransshipment refers to the act of sending an exported product through an intermediate country before routing it to the country intended to be its finaldestination.

*Twenty-Foot Equivalent Unit (TEU)Themeasureusedforcontainercapacity,ateuisavolumemeasurementequaltoonestandard20ft(length6.1meter;approximately39cubicmeters)container.

Twenty-Foot Equivalent Unit (TEU)TEUisameasureofaship’scargo-carryingcapacity.OneTEUmeasurestwentyfeet by eight feet by eight feet -- the dimensions of a standard twenty-foot container. AnFEUequalstwoTEUs.

Ultimate ConsigneeThe ultimate consignee is the person located abroad who is the true party in interest, receiving the export for the designated end-use.

ULCCUltraLargeCrudeCarrier.Atankerinexcessof320,000dwt.

VLCCVeryLargeCrudeCarrier.Atankerof200,000to319,000dwt.Itcancarryabout2million barrels of crude oil.

WharfageA charge assessed by a pier or dock owner for handling incoming or outgoing cargo.

Worldscale Worldscaleisaunifiedsystemofestablishingpaymentoffreightrateforagivenoiltanker’scargo.WorldscalewasestablishedinNovember1952byLondonTankerBrokers’Panelon the requestofBritishPetroleumandShellasanaverage totalcost of shipping oil from one port to another by ship. A large table was created for this purpose.


This is to certify that the Integrated Management System Across the Establishments & Fleet of

Organisation: The Shipping Corporation of India Limited

Address:

H.O.: “Shipping House”, 245, Madame Cama Road Nariman Point, Mumbai - 400 021

Support Locations & Scope: Refer Annexure has been assessed as Integrated Management System and found

conforming to the following requirement Standard:

ISO 9001:2015

ISO 14001:2015 ISO 45001:2018

Scope:

Certificate No.:

• Owning, Managing & Chartering of Ships

for Transportation of Goods and Passengers

• Offshore and Marine Advisory Services • Maritime Training Services

IRQS/ 201200318 This Certificate Supersedes our Previous Certificate no.

IRQS/18101546, IRQS/18301547 & IRQS/18401548 dated 21st December 2018

Original Certification Date: 23/12/2015

Current Date of Granting: 12/06/2020

Expiry Date: 21/12/2021


Annexure to Certificate No. IRQS/201200318 with respect to the following scope:

Sites/Support Functions & Locations which support M/s. The Shipping Corporation of India Limited

Location Scope

SCI -Chennai Regional Office Jawahar Building, Rajaji Salai, Chennai – 600 001

Co-ordination, Liason with Head Office & Fleet Management

SCI – Kolkata Regional Office Shipping House, 13 Strand Road, Kolkata – 700 001

Co-ordination, Liason with Head Office & Fleet Management

SCI- Delhi Regional Office Chandralok, 1st Floor, 36, Janpath, New Delhi – 110 001

Liasoning with Internal & External Agencies

SCI – Port Blair Regional Office Gati Coast to Coast Building, No:99, J.L. Nehru Road, P.B. No: 310, Delanipur, Port Blair – 744 101

Co-ordination with Kolkata & HO and Technical Management of A&N ships

Maritime Institutes MTI- Powai, Adi Shankaracharya Marg, Powai – 400 072, Mumbai, Maharashtra, India

Maritime Training Services

Entire Fleet Shipboard Operations

Documents

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