MIRA INFORM REPORT

Report Date :

05.01.2008

IDENTIFICATION DETAILS

Name :	THE GREAT EASTERN SHIPPING COMPANY LIMITED
Registered Office :	Ocean House, 134/A, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	03.08.1948
Com. Reg. No.:	006472
CIN No.: [Company Identification No.]	L35110MH1948PLC006472
TAN No.: [Tax Deduction & Collection Account No.]	MUMT09401A
PAN No.: [Permanent Account No.]	AAACT1565C
Legal Form :	Public limited liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Owning and Operating of Ships

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 122711600
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed Shipping Company having satisfactory track. Available information indicates high financial responsibility of the company. Financial position is satisfactory. Payments are usually correct and as per commitments. It can be regarded as a promising business partner in a long run. Your proposed business dealings can be considered against normal trade terms and conditions.

LOCATIONS

Registered Office :	Ocean House, 134/A, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India
Tel. No.:	91-22-24922100
Fax No.:	91-22-24921200
E-Mail :	info@greatship.com
Website :	http://www.greatship.com
Head Office :	Hong Kong Bank Building, Dr. D. N. Road, Fort, Mumbai – 400 001, Maharashtra, India
Representive Office :	· Dubai · UAE
Offshore Division :	Energy House, 81, D. N. Road, Mumbai - 400 001, Maharashtra, India
Tel. No.:	91-22-56352222
Shipping Division :	Ocean House, 134/A, Dr. Annie Besant Road, Worli, Mumbai - 400 018, Maharashtra, India
Tel. No.:	91-22-56613000

DIRECTORS

Name :	Mr. K. M. Sheth
Designation :	Executive Chairman
Date of Birth/Age :	71 years
Qualification :	U.G.Com.
Experience :	51 years
Date of Appointment :	1^st October, 1952
Name :	Mr. S. J. Mulji
Designation :	Executive Deputy Chairman
Date of Birth/Age :	65 years
Qualification :	M.A. (OXON)
Experience :	42 years
Date of Appointment :	1^st April, 1998
Previous Employment	The Great Eastern Shipping Company London Limited
Name :	Mr. Vijay K. Sheth
Designation :	Managing Director
Date of Birth/Age :	48 years
Qualification :	B.Com., MBM (Manila)
Experience :	25 years
Date of Appointment :	1^st September, 1983
Previous Employment	A. H. Bhiwandiwalla and Company Private Limited
Name :	Mr. Bharat K. Sheth
Designation :	Deputy Chairman and Managing Director
Date of Birth/Age :	45 years
Qualification :	B.Sc. (Scotland)
Experience :	22 years
Date of Appointment :	1^st October, 1981
Name :	Mr. R. N. Sethna
Designation :	Director
Name :	Mr. K. P. Byramjee
Designation :	Director (Upto December 24, 2002)
Name :	Mr. A. K. Parikh
Designation :	Director
Name :	Ms. Asha V. Sheth
Designation :	Director
Name :	Mr. Manu Shroff
Designation :	Director
Name :	Mr. T. N. Pandey
Designation :	Director
Name :	Mr. Cyrus Guzder
Designation :	Director (March 14, 2003 onwards)
Name :	Mr. Keki Mistry
Designation :	Director (March 14, 2003 onwards)
Name :	Mr. Vineet Nayyar
Designation :	Director
Name:	Mr. Berjis Desai
Designation:	Director
Name:	Mr. Ravi K. Sheth
Designation:	Executive Director

KEY EXECUTIVES

Name :	Mr. Jayesh M. Trivedi
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters
Mr. K. M. Sheth	2050933	1.35
Other Promoters	42915372	28.18
Directors (Other than Promoters)
Mr. R. N. Sheth	40000	0.02
Mr. Keki Mistry	640	0.00
Mr. Vineet Nayyar	23005	0.02
Mr. Berjis Desai	800	0.00
Other Directors	1178	0.00
Other Public Shareholders	107241996	70.43
Total Shares	152273924	100.00

BUSINESS DETAILS

Line of Business :	Shipping and Offshore
Products :	· Shipping · Offshore

GENERAL INFORMATION

Customers :

· Oil and Natural Gas Corporation Limited

· Cairn Energy Limited

· Enron Oil and Gas India Limited / British Gas Exploration and Production India Limited

· Hardy Exploration and Production (India) Inc.

· NPCC

· Saudi Aramco

· Marathon Oil

· Nico M. E. Limited

· Maersk Oil, Qatar

· Schlumberger Overseas S. A.

· Noble Asset Company

· Petrom S A

· Transocean Sedco Forex

No. of Employees :

3000

Bankers :

State Bank of India, Mumbai

Facilities :

SECURED LOANS :	Rs. In Millions
TERM LOANS -
From Banks	20061.800
Secured by mortgage of specific ships, assignment of bank deposit and a financial covenent to maintain unencumbered assets (refer note 3).
NON-CONVERTIBLE DEBENTURES -
1. Secured Redeemable Non-Convertible Debentures of Rs. 1,00,00,000 each -
8.95 % redeemable on July 07, 2007.	712.700
6.05 % redeemable on September 19, 2010	873.300
2. Secured Redeemable Non-Convertible Debentures of Rs. 50,00,000 each
10.25 % (series 6 - 7 ) redeemable in two annual installments on May 25, 2007 to May 25, 2008.	250.000
Secured by mortgage of specified immovable properties and ships
Liability for Debentures is net of amount recoverable from Great Offshore Limited in respect of amount transferred on de-merger.
Total	21897.800

Banking Relations :	Good
Auditors :
Name :	Kalyaniwalla and Mistry Chartered Accountants
Address :	Kalpataru Heritage, 127 Mahatma Gandhi Road, Mumbai - 400001
Name:	Chandabhoy and Jassoobhoy Chartered Accountants
Associates :	· Business Standard Limited · Great Ocean Shipping Services Limited · Prime Securities Limited · United Helicharterers Private Limited
Subsidiaries :	· The Great Eastern Shipping Company London Limited · The Greatship (Singapore) Pte Limited · The Great Eastern (Fujairah) L.L.C. – FZC · The Great Eastern Investments Limited · Greatship (India) Limited · Deep Water Services (India) Private Limited · P and O Travels India Limited · The Great Eastern Chartering L.L.C. – (FZC)

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
300000000	Equity Shares	Rs.10/- each	Rs. 3000.000 millions
200000000	Preference Shares	Rs. 10/- each	Rs. 2000.000 millions
	Total		Rs. 5000.000millions

Issued Capital :

No. of Shares	Type	Value	Amount
152698445	Equity Shares	Rs.10/- each	Rs. 1526.984 Millions

Subscribed Capital :

No. of Shares	Type	Value	Amount
152276442	Equity Shares	Rs.10/- each	Rs. 1522.764 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
152273924	Equity Shares	Rs. 10/- Each	Rs.1522.739 Millions

Note:

1. Out of above, 74,39,858 (Previous Year 74,39,858) shares are allotted as fully paid up persuant to a contract without payment

being received in cash.

2. The Paid-up Equity Share Capital includes Rs.0.030 Million (Previous year Rs. 0.030 Million), on account of forfeited shares and is net of Calls in Arrears Rs. 0.031Million (Previous year Rs. 0.033 Million).

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		1522.700	1522.700	1903.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		29155.200	22339.200	19987.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		30677.900	23861.900	21890.400
LOAN FUNDS
1] Secured Loans		21897.800	18691.500	20797.500
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		21897.800	18691.500	20797.500
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		52575.700	42553.400	42687.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		36324.100	27553.100	28741.800
Capital work-in-progress		1800.000	1097.400	3271.500
INVESTMENT		4036.100	1857.900	575.300
DEFERREX TAX ASSETS		0.000	0.000	40.600
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	351.500	334.500	308.900
	Sundry Debtors	1548.200	684.600	1653.600
	Cash & Bank Balances	10653.700	13515.600	10364.500
	Other Current Assets	320.300	151.700	125.400
	Loans & Advances	938.800	816.200	1247.200
	Incomplete voyages (NET)	0.000	0.000	0.000
Total Current Assets		13812.500	15502.600	13699.600
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2344.200	3193.900	2673.900
	Provisions	950.300	215.600	803.400
	Incomplete voyages (NET)	102.500	48.100	182.800
Total Current Liabilities		3397.000	3457.600	3660.100
Net Current Assets		10415.500	12045.000	10039.500
MISCELLANEOUS EXPENSES		0.000	0.000	19.200
TOTAL		52575.700	42553.400	42687.900

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		21338.200	22661.300	21192.300
Other Income		1172.800	759.500	0.000
Total Income		22511.000	23420.800	21192.300
Profit/(Loss) Before Tax		9098.900	8757.700	7911.800
Provision for Taxation		320.000	322.700	253.800
Profit/(Loss) After Tax		8778.900	8435.000	8165.600
Export Value		N.A.	N.A.	N.A.
Import Value		N.A.	N.A.	N.A.
Expenditures :
	Operating Expenses	8874.500	9204.700	0.000
	Administration and Other Expenses	813.200	785.400	0.000
	Interest and Financial Charges	1071.800	969.400	0.000
	Depreciation	2652.600	2828.100	13280.500
	Impairment loss on Certain assets	0.000	875.500	0.000
Total Expenditure		13412.100	14663.100	13280.500

QUARTERLY RESULTS

PARTICULARS	30.06.2007 1^st Quarter	30.09.2007 2^nd Quarter
Sales Turnover	6371.300	6013.100
Other Income	2325.600	2048.500
Total Income	8696.900	8061.600
Total Expenditure	3244.400	3234.500
Operating Profit	5452.500	4827.100
Interest	314.000	341.200
Gross Profit	5138.500	4485.900
Depreciation	835.500	865.600
Tax	92.600	192.400
Reported PAT	4210.400	3427.900

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt Equity Ratio	0.74	0.86	0.94
Long Term Debt Equity Ratio	0.74	0.86	0.94
Current Ratio	4.28	4.11	2.32
TURNOVER RATIOS
Fixed Assets	0.41	0.44	0.50
Inventory	58.24	60.14	50.16
Debtors	17.89	16.55	15.03
Interest Cover Ratio	8.19	6.60	9.56
Operating Profit Margin (%)	57.23	47.68	52.58
Profit Before Interest and Tax Margin (%)	43.95	33.07	38.67
Cash Profit Margin (%)	50.50	41.60	49.82
Adjusted Net Profit Margin (%)	37.22	26.98	35.91
Return on Capital Employed (%)	18.46	15.01	21.73
Return on Net Worth (%)	27.26	22.82	36.79

LOCAL AGENCY FURTHER INFORMATION

History:

G E Shipping owes its success to the foresightedness of two families - the Sheths and the Bhiwandiwallas, who started their own shipping line to help expand the reach of their trading businesses. In 1948, after obtaining the mothballed Liberty ship, SS Fort Elice, G E Shipping began its maiden voyage under the entrepreneurial genius of Vasant J. Sheth and steered ahead confidently, tasting new waters and exploring new avenues. From providing sea-logistics support in its initial years to venturing in tramp shipping, to diversifying into offshore oil field services, much against the industry norms, the company has often swum against the tide and in the process, turned the tides in its favour, thereby laying a path for others to follow.

Directors Profile:

· MR. VINEET NAYYAR

Mr. Vineet Nayyar holds a Master's degree in Development Economics from Williams College, Massachusetts. He has varied experience in Government, multilateral financial institutions and the Corporate sector. He was the member of the Indian Administrative Service. He has held major assignments such as:

· 1970 - 73 Secretary, Agriculture, State of Haryana.

· 1973 - 78 Director, Department of Economic Affairs, Ministry of Finance, Government of India.

He has held various prestigious positions in The World Bank, Washington DC like:

· 1978 - 86 Chief, Petroleum Department, Europe, Middle East and North Africa. Chief and Head of Energy Department, East Asia and Pacific.

· 1991 -95 Chief and Head of Energy, Finance and Infrastructure Departments, East Asia and Pacific.

During this period he led the first Energy mission to China and was responsible for the privatization of Infrastructure in Philippines, reorganisation of the Central Bank of Philippines and financial reforms and reorganisation of the Central Bank of South Korea, etc.

He was the Promoter and Vice Chairman of HCL Technologies. He was also the founder and Chief Executive Officer of HCL Perot Systems. He is currently functioning as Vice Chairman and MD of Tech Mahindra Limited.

He was the Chairman and Managing Director of Gas Authority of India Limited (GAIL). As the first regular Chairman of GAIL he was responsible for setting up the HBJ pipeline, gas fractionation plants and the startup of Auriya Petro Chemical Plant. As on date Mr. Vineet Nayyar holds 23,005 equity shares in the company.

He is also a Director on the Board of following public limited companies:

· Indian Oil Corporation Limited

· Tech Mahindra Limited

· Business Standard Limited.

· CanvasM Technologies Limited.

· Kotak Mahindra Old Mutual Life Insurance Company Limited

· Mahindra Holidays and Resorts (India) Limited

· Tech Mahindra (R and D Services) Limited

· MR. R. N. SETHNA

Mr. R. N. Sethna completed LLB in the year 1954 from Government Law College with a first class and ranked first in the University. He passed his Solicitors' exam with a 1st class first in 1958.

He joined M/s. Romer Dadachanji Sethna and company, as a Partner in 1960 and is presently a partner in Maneksha and Sethna. He has been a Director of the company since 1974. He was a member of the Indian Advisory Committee of HSBC from 1992 to 2001 and Chairman thereof for about 2 years.

His specialization includes commercial, corporate, real estate and foreign exchange laws. As on date, Mr. R. N. Sethna holds 40,000 equity shares in the company.

He is also a Director on the Board of the following public limited companies:

· Pudumjee Pulp and Paper Mills Limited

· Modern Mills Limited

· National Peroxide Limited

· Chalet Hotels Limited

Mr. R. N. Sethna is also a member of the following:

Name of the Company	Name of Committees	Member / Chairman
Modern Mills Limited	Shareholders' and Investors' Grievances Committee	Member
National Peroxide Limited	Audit Committee	Chairman

· MR. BHARAT K. SHETH

Mr. Bharat K. Sheth has completed his Bachelor of Science Economics with honours from St. Andrews University, Scotland, in 1981. In the same year he joined the company and since then has gained rich experience in chartering and later sale and purchase activities. He was inducted on the Board as an Executive Director on July I, 1989 and became Managing Director of the company with effect from April I, 1999. He has been redesigned as Deputy chairman and Managing Director of the company with effect from August 12, 2005. He has been spearheading the shipping division of the company.

His expertise in specific functional areas include management and market expertise, capital investment / disinvestments and capital budgeting. He is also a Director on the Board of Greatship (India) Limited

The demand-supply relationship was tightly balanced, leading to a high level of volatility. VLCC spot rates, for instance for the route between the Arabian Gulf to Japan ranged between World Scale 141 (WS) (Time Charter Equivalent, or TCE, approx. $ 82,000 /day) and WS 52 (TCE approx. $ 24,000/day) during the year.

COMPANY PERFORMANCE:

The tanker business accounted for around 82% of the company's net revenues and 79% of the operating profits.

In FY 06-07, around 42% of the earnings was derived from the spot market. The crude tankers, inclusive of 'spot' and 'period', earned an average TCY of $ 29,700/day (previous year $28,2007 day). The improved crude tanker earnings were mainly a result of time charter renewals at higher rates. The product carriers, inclusive of 'spot' and 'period', earned an average TCY of $ 23,0007 day, which was at similar levels as that of last year. The Company's two LPG carriers, on period, earned an average TCY of $!5,800/day (previous year $ 16,000/day).

TANKER FLEET CHANGES:

The current tanker fleet of the company stands at 34 tankers aggregating 2.55 million dwt, with an average age of 11.7 years as against 32 tankers aggregating 2.54 million dwt with an average age of 12.8 years as on 31st March 06.

During the year, the company took delivery of its third double hull Suezmax tanker, 'Jag Layak', November 2006.

During the year, the company also took delivery of three double hull product tankers, 'Jag Panna' in January 2007, 'Jag Payal' and 'Jag Prakash' in March 2007. Subsequently the double hull product tanker'JagPushpa' was delivered to the company in April 2007.

The company also acquired a double sided Handysize tanker, 'Jag Parwar', in February 2007. the Company sold a Aframax tanker, 'Jag Leena' in August 2006 and also the Suezmax tanker 'Jag Laadki' in April 2007. The company also sold 2 product tankers, 'Jag Prachi' in May 2006 and 'Jag Padma' in February 2007.

During FY 06-07, The company placed ordersfor two Long range one (LRI) product tankers, both of which are to be delivered in end 2008. The total new buildings orders for the company now rest at five vessels involving a total outlay of about US $ 240 million.

OUTLOOK FOR THE TANKER MARKET:

IEA expects that the average demand for 2007 in total will be 86.03 million barrels per day, or a 1.8 percent growth from 2006, hence showing belief in continued strong demand growth. They expect that the incremental demand for tankers will be approximately 3-4%. With a total of 34 million dwt of tankers to be delivered in 2007, and about 12 million dwt of scrapping expected, the net fleet growth in tankers in 2007 will be about 6%. This could lead to lower fleet utilization numbers as compared to last year's levels. They therefore expect that average spot rates, though healthy, could be lower than those in the previous year, although the eventual outcome will depend on the unknown! The tanker orderbook stands at about 149 million dwt, or 40% of the fleet, at the end of March 2007.

· DRY BULK BUSINESS

MARKET TREND AND ANALYSIS

2006 was the year of resurgence in the demand for dry bulk ships. Although the initial part of the financial year did not show any significant gains in earnings, the balance part of the year saw a one directional move in the earnings for the dry bulk ships. Similar to 2005, the dry-bulk markets in 2006 were predominantly driven by the Chinese demand for commodities. Chinese imports of iron ore grew an impressive 51 million tons over the 2005 level of 275 million tons totaling 326 million tons, while steel production moved up 76 million tons to 350 million tons in 2006. India too registered a robust increase in steel production from 37million tons in 2005 to 42.9 million tons in 2006.

The overall increase in demand for bulkers in 2006 was a result of robust growth in commodity imports by Asia, particularly China. This led to congestion in the loading ports effectively increasing the utilization rates. Also, minor bulk trades especially that of cement and steel firmed up significantly in 2006.

The total income for the year was recorded at Rs. 22511.000 Millions as against Rs. 23420.800 Millions in the previous year and a Net Profit after prior period adjustments of Rs. 8833.100 Millions as against Rs. 8386.000 Millions in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

COMPANY PERFORMANCE

In FY 07, the Company recorded a total income of Rs. 22511.000 Millions (Previous year Rs. 23420.800 Millions) and earned a PBIDT of Rs. 12823.300 Millions (previous year Rs. 13430.700 Millions).

TANKER BUSINESS

MARKET TREND AND ANALYSIS

Similar to FY 06, FY 07 was characterized by significant volatility in shipping markets. World oil demand grew by a relatively modest 1%, or 0.8 million barrels per day ("b/d"), in 2006, after recording a growth of 1.6% in 2005. The lower growth rate in 2006 resulted primarily due to 1% reduction in oil demand in the U.S. Similarly, demand out of Europe also decreased by 0.5%. China, on the other hand saw robust growth in its consumption, whereby the demand in 2006 was up by nearly 7% over 2005. Higher prices and an unusually warm winter in the Northern Hemisphere kept a lid on crude oil demand in 2006.

The world tanker fleet increased to 369.2 million dwt at the end of the financial year, 5% higher than the 351.3 million dwt at the beginning of FY 06-07.

The hurricane season in the Atlantic, which lent support to tanker earnings in 2005 was inactive in 2006 and thus there was an absence of a spike in earnings in 2006. Also, OPEC cut its production by about I million barrels per day during the year, which resulted in lesser loadings from the Arabian Gulf. As a result crude tankers loading from the Gulf saw their earnings virtually stalled during Q2 and Q3 FY07.

Overall, tanker rates in 2006, though healthy as compared to historical averages, were weaker than 2005 as a result of subdued demand emanating from high oil prices and an increasing world tanker fleet.

Fixed Assets :

· Fleet

· Plant and Machinery

· Land (Freehold, Leasehold and Perpetual Lease)

· Ownership Flats and Office Premises

· Furniture

· Fixtures and Office Equipments

· Vehicles.

Website details:

Overview

· The Great Eastern Shipping Company Ltd. (G E Shipping)

· India’s largest private sector shipping company

· Experience and expertise spanning 5 decades.

· An enviable global reputation.

· Creating value for customers.

The company has two main business: shipping and offshore. The shipping business is involved in transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business services to the oil companies in carrying out offshore exploration and production activities, through its wholly owned subsidiary Greatship (India) Limited. The shipping business has been awarded the ISO 9001: 2000 standard certification by DNV.

Subsidiaries Companies:

· The Great Eastern Shipping Company London Limited

In 1985, The Great Eastern Shipping Company London Limited was set up as a fully owned subsidiary of G E Shipping. Apart from international exposure and reach, the London subsidiary also offered greater flexibility in the sale and purchase and in chartering markets.

Board of Directors

B.K. Sheth

M.J. Brace

P.B. Kerr-Dineen

Auditors

G.R. Atkinson, FCA

Bankers

Bank of Baroda

Royal Bank of Scotland PLC

Address

Correspondence Address:

19 Brook Meadow, Woodside Park, London N12 7DB, UK

Registered Address:

The Galleries, Charters Road, Sunningdale Ascot, Berkshire SL5 9QJ, UK

Tel.: No. 91-44-208 445 1942

Fax: 91-44-208 492 0545

· Greatship (India) Limited

The wholly owned subsidiary company was incorporated on June 26, 2002.

Board of Directors

Bharat K. Sheth

Ravi K. Sheth - Managing Director

P.R. Naware - Executive Director

Balan Wasudeo

K. J. Vesuna

Tapas Icot

Auditors

Kalyaniwalla and Mistry

Address

Marathon Inova, 101/ 1st Floor, B Wing, Lower Parel, Mumbai-400013

Tel No.: 91 22 24822101, 24822000

· The Greatship (Singapore) Pte. Limited

Singapore has been a leading maritime centre in the Asia Pacific zone and is one of the most advanced countries globally as regards infrastructure and maritime development.

In 1994, with a view to explore business opportunities in the Far East and South East Asia, G E Shipping set up a subsidiary, The Greatship (Singapore) Pte. Limited.

Board of Directors

P.R. Naware

Jaya Prakash

Balan Wasudeo

Auditors

Shankar Iyer and Company.

Bankers

Development Bank of Singapore

Address

51, Goldhill Plaza, #11/03-05, Singapore - 308900.

Tel. No.: 91-65-63534248

Press Release :

G E Shipping deliverd its Handysize dry bulk carrier, “Jag Rupali” to the buyers. The 1983 built 37092 dwt vessel was contracted to be sold in October 2005.

With the delivery of “Jag Rupali”, the company’s fleet size stands at 72 vessels – 40 ships aggregating 2.80 Mn dwt and 32 offshore units. The company’s new building orderbook stands at 11 vessels – 5 MR product Tankers and 6 Offshore Suppally Vessels.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.39.32
UK Pound	1	Rs.77.53
Euro	1	Rs.57.91

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	10
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		81

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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