MIRA INFORM REPORT

Report Date :

18.12.2012

IDENTIFICATION DETAILS

Name :	SHIPPING CORPORATION OF INDIA LIMITED

Registered Office :	Shipping House, 245 Madame Cama Road, Mumbai – 400021, Maharashtra

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	24.03.1950

Com. Reg. No.:	11-008033

Capital Investment / Paid-up Capital :	Rs.4658.000 Millions

CIN No.: [Company Identification No.]	L63030MH1950GOI008033
Legal Form :	A Public Limited Liability Company.

Line of Business :	Providing all types of Ship Owner, Operator Services, Cargo Liner, Container Services, etc.

No. of Employees :	3520 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 269300000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a Union Government Company. It is a well established and reputed company having good track record. Financial strength is strong. But there appears loss in the current year, However performance capacity is high. The creditors and the lenders can be confident to their exposure in the company. Trade relation are reported to be fair. Business is active. Payment are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	AA-
Rating Explanation	Having high degree of safety regarding timely servicing of financial obligation it carry very low credit risk.
Date	December 2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Shipping House, 245 Madame Cama Road, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22853556 / 22772163 / 22822041 / 22772168 / 22026666 / 22023463
Mobile No.:	91-22-228754790 / 22833772 / 22026905
E-Mail :	dipankar.haldar@sci.co.in arun.gupta@sci.co.in k.devdas@sci.co.in
Website :	www.shipindia.com

Regional Office - Chennai	" Jawahar Building", 17, Rajaji Salai, Chennai - 600001, Tamilnadu, India
Tel. No.:	91 044 25231401 ( 10 lines)
Fax No.:	91 044 25231218

Regional Office, New Delhi	"Chandralok", 1st Floor, 36, Janpath, New Delhi - 110 001, India
Tel. No.:	91 11 23322627/ 23322604 / 23322675
Fax No.:	91 11 3713755

Regional Office - Kolkata	"Shipping House", 13, Strand Road, P.O.Box No.2653, Kolkata – 700001, West Bengal, India
Tel. No.:	91 33 22482354 (18 Lines)
Fax No.:	91 33 22480377/22482035

Regional office - Haldia	Jawahar Tower Building Office
Tel. No.:	91- 324-263359/ 263257

Regional Office - Port Blair	Gati Coast-to-Coast building, No 99, Jawaharlal Nehru Road, Delanipur, Post, box No 310, Port Blair, Andaman Islands, 744102
Tel. No.:	91-3192-233590 / 233347
Fax No.:	91-3192-233778

Technical and Offshore Division :	Shipping House, 4^th floor, 245, Madame Cama Road , Mumbai 400021, Maharashtra, India Tel. No.: 91-22-25701430 E-Mail : ec.rao@sci.co.in Fax No.: 91-22-25700824 250, Sudam Kalu Ahire Marg , Worli, Mumbai - 400 002, Maharashtra, India Tel. No.: 91-22-24937484 E-Mail : jvs.rao@sci.co.in Fax No.: 91-22-24914728

DIRECTORS

As on: 31.03.2012

Name :	Mr. S. Hajara
Designation :	Chairman and Managing Director

Name :	Mr. Vijay Chhibber
Designation :	Government Director

Name :	Mr. M.C. Jauhari
Designation :	Government Director

Name :	Mr. J.N. Das
Designation :	Director
Date of Birth/Age :	24.04.1954
Qualification :	Graduation from Directorate of Marine Engineering Training (DMET) 1^st Class Engineer (MOTOR) Certificate of Competency from MOT Member of Institute of Engineers (MIE, India) Fellow of Institute of Marine Engineers (F.I.M.E) – India
Date of Appointment :	24.12.2007
Expertise in specific functional areas :	Vast experience in shipping management, Bulk carrier, tankers, chemicals, LPG and LNG operations, New Building and Offshore services.

Name :	Rear Admiral (Retd.) T.S. Ganeshan
Designation :	Director

Name :	Mr. Arun kumar Gupta
Designation :	Director

Name :	Mr. Kailash Gupta
Designation :	Director
Date of Birth/Age :	25.12.1952
Qualification :	B. A. (Hons.) Post Graduate Diploma in Personnel Management from XLRI, Jamshedpur LL. B.
Date of Appointment :	20.07.2006
Expertise in specific functional areas :	Vast experience in light engineering, super thermal and hydroelectric power projects/power utility, hospitality services, and mines and mineral sector in human resources management/ development, industrial relations, administrative support services, legal affairs, corporate communications and media affairs, and related functions

Name :	Prof. Sushil Khanna
Designation :	Director
Date of Birth/Age :	05.07.1951
Qualification :	· ‘Fellow’ India Institute of management Calcutta, 1984 (Ph.D) · Post Graduate Diploma in Management Calcutta, 1973 · BSc. Major Physics from Allahabad University
Experience :	Vast experience as investment banker and as an academic in area of corporate strategy, organizational restructuring, finance and general management.
Date of Appointment :	11.08.2010

Name :	Mr. B.K. Mandal
Designation :	Director
Date of Birth/Age :	09.05.1954
Qualification :	B. Com (Hons) Post Graduate Diploma in Management (MBA) from IIM, Ahmedabad FICWA
Date of Appointment :	11.11.2005
Expertise in specific functional areas :	Vast experience in Financial, Accounting and General Management area.

Name :	Mr. Nasser Munjee
Designation :	Director
Date of Birth/Age :	18.11.1952
Qualification :	Master’s degree from the London School of Economics, UK
Date of Appointment :	13.08.2007
Expertise in specific functional areas :	Vast experience in housing finance and is deeply interested in rural development, urban issues, specially the development of modern cities and humanitarian causes.
Chairmanship/Directorship held in other public companies :	1. ABB Limited 2. Apollo Health Street Limited 3. Bharati AXA Life Insurance Company Limited 4. Cummins India Limited 5. Tata Chemicals Limited 6. Unichem Laboratories Limited 7. Voltas Limited 8. Tata Motors Limited 9. Neptune Developers Limited 10.Development Credit Bank Limited 11. HDFC Limited. 12.Ambuja Cements Limited 13.Bharati AXA General Insurance Company Limited 14.Britannia Industries Limited

Name :	Mr. Arun Ramanathan
Designation :	Director
Date of Birth/Age :	25.04.1949
Qualification :	Msc. Nuclear Physics (Andhra University) MBA (Financial Management) – Madras University Mphil. In Development Economics (Cambridge University) AICWA
Experience :	Vast experience in general and financial administration in Government and Public Sector
Date of Appointment :	11.08.2010

Name :	Mr. S.K. Roongta
Designation :	Director

Name :	Mr. U. Sundararajan
Designation :	Director
Date of Birth/Age :	14.06.1942
Qualification :	Cost Accountant
Experience :	Vast experience in financial, Accounting and general Management area
Date of Appointment :	11.08.2010

Name :	Capt. Sunil Thapar
Designation :	Director

Name :	Mr. S.C. Tripathi
Designation :	Director

Name :	Mr. Arun Kumar Verma
Designation :	Director
Date of Birth/Age :	28.06.1951
Qualification :	B.Com. (Hons) LL.B. DISA (ICA) Fellow Member of Institute of Chartered Accountants of India
Experience :	Vast experience in areas concerning Accounts, Audit, Finance and Law
Date of Appointment :	11.08.2010

Name :	Mr. Dipankar Haldar
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. Dipankar Haldar
Designation :	SVP (Legal Affairs) and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3057	0.00
Central Government / State Government(s)	296939920	63.75
Sub Total	296942977	63.75
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	296942977	63.75
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	286570	0.06
Financial Institutions / Banks	10952015	2.35
Insurance Companies	79744068	17.12
Foreign Institutional Investors	8552381	1.84
Sub Total	99535034	21.37
(2) Non-Institutions
Bodies Corporate	15890214	3.41
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	40409220	8.68
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	9205786	1.98
Any Others (Specify)	3815779	0.82
Overseas Corporate Bodies	5250	0.00
Non Resident Indians	3432981	0.74
Trusts	377448	0.08
Foreign Nationals	100	0.00
Sub Total	69320999	14.88
Total Public shareholding (B)	168856033	36.25
Total (A)+(B)	465799010	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	465799010	0.00

BUSINESS DETAILS

Line of Business :

Providing all types of Ship Owner, Operator Services, Cargo Liner, Container Services, etc.

GENERAL INFORMATION

Customers :

Indian Oil Corporation Limited
Steel Authority of India Limited
Oil and Natural Gas Corporation Limited
Al kabeer Exports Private Limited
HT Media Limited, New Delhi
Bharat Heavy Electricals Limited
Controller of Stores (Shipping) – Central Railway
Reliance Industries Limited
Bharat Forge Limited
Geologistics Private Limited

No. of Employees :

3520(Approximately)

Bankers :

· Oriental Bank of Commerce

· Bank of Maharashtra

· United Bank of India

· State Bank of India

· Andhra Bank

· EXIM Bank

· Citi Bank

· HSBC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Indian Banks	3577.800	1061.800
Foreign Banks	51680.000	39501.200

Total	55257.800	40563.000


Banking Relations :	--

Auditors :
Name :	P.S.D. and Associates Chartered Accountant
Address :	324. Ganpati Plaza, M.I. Road, Jaipur – 302001, Rajasthan, India

Name :	Sarda and Pareek Chartered Accountant
Address :	Mahavir Apartments, 3rd Floor, 598, M G Road, Near Suncity Cinema, Vile Parle (East), Mumbai - 400057, Maharashtra, India

Joint Venture Companies :	Irano Hind Shipping Company Limited India LNG Transport Company (No. 1) Limited India LNG Transport Company (No. 2) Limited India LNG Transport Company (No. 3) Limited SCI Forbes Limited SAIL SCI Shipping Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

1000000000	Equity Shares	Rs.10/- each	Rs.10000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

465799010	Equity Shares	Rs.10/- each	Rs.4658.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4658.000	4658.000	4234.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		62685.200	67023.100	59135.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		67343.200	71681.100	63370.000
LOAN FUNDS
1] Secured Loans		55257.800	40563.000	26968.600
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		55257.800	40563.000	26968.600
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		122601.000	112244.100	90338.600

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		89127.500	73692.000	45068.100
Capital work-in-progress		3619.900	3290.500	0.000
Asset under construction		0.000	0.000	18547.000

INVESTMENT		2746.700	2926.700	1666.600
DEFERREX TAX ASSETS		0.000	0.000	0.000
OTHER NON CURRENT ASSETS		50.000	50.800	0.000
Asset hold for disposal		0.000	0.000	0.200

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1774.500	1465.000	832.100
	Sundry Debtors	7859.300	3807.300	3380.600
	Cash & Bank Balances	14424.100	24667.200	24064.600
	Other Current Assets	1759.100	2096.800	1391.200
	Loans & Advances	18953.900	18204.300	3198.500
	Amount advanced to joint venture companies	0.000	0.000	2348.300
	Deposit with public financial institutions	0.000	0.000	2700.000
Total Current Assets		44770.900	50240.600	37915.300
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6037.600	6357.400	7177.600
	Other Current Liabilities	10234.000	8928.000	2274.800
	Provisions	1442.400	2671.100	3406.200
Total Current Liabilities		17714.000	17956.500	12858.600
Net Current Assets		27056.900	32284.100	25056.700

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		122601.000	112244.100	90338.600

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	38675.500	35946.400
		Other Income	5996.300	3953.500
		TOTAL (A)	44671.800	39899.900	39026.900

Less	EXPENSES
		Cost of Service Rendered	33284.400	22544.500
		Employees Benefit Expenses	4141.300	4304.000
		Other expenses	1016.100	1462.600
		Prior period Adjustment	(330.000)	(297.500)
		TOTAL (B)	38111.800	28013.600	29940.800

Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6560.000	11886.300	9086.100

Less	FINANCIAL EXPENSES (D)		3873.000	668.900	525.300

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2687.000	11217.400	8560.800

Less/ Add	DEPRECIATION/ AMORTISATION (F)		6087.200	4651.00	3801.100

	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(3400.200)	6566.400	4759.700

Less	TAX (H)		881.900	892.900	990.600

	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(4282.100)	5673.500	3769.100

Less	Transferred to Tonnage Tax Reserve u/s 115VT of Income Tax Act		0.000	1140.000	800.00

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5904.300	5166.300	5113.800

Less	APPROPRIATIONS
		Staff Welfare Fund		10.000	10.000
		Corporate Social Responsibility Reserve		56.700	37.700
		Capital Reserve		175.900	0.000
		General Reserve	NA	570.000	400.000
		Interim Dividend		1397.400	0.000
		Tax on Interim Dividend		232.100	0.000
		Proposed Dividend		1164.500	2117.300
		Tax on Proposed Dividend		188.900	351.600

	BALANCE CARRIED TO THE B/S		NA	5904.300	5166.300

	Earnings Per Share (Rs.)		(9.19)	13.01	8.90

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
	1^stQuarter	2^ndQuarter
Net Sales	12200.200	10286.500
Total Expenditure	10575.800	10490.400
PBIDT (Excl OI)	1624.400	(203.900)
Other Income	777.000	890.900
Operating Profit	2401.400	687.000
Interest	1103.800	299.900
Exceptional Items	0.000	0.000
PBDT	1297.600	387.100
Depreciation	1683.300	1964.900
Profit Before Tax	(385.700)	(1577.800)
Tax	163.000	237.000
Provisions and contingencies	0.000	0.000
Profit After Tax	(548.700)	(1814.800)
Extraordinary Items	0.000	4787.400
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(548.700)	2972.600

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(9.59)	14.22	9.66

Net Profit Margin (PBT/Sales)	(%)	(8.79)	18.27	NA

Return on Total Assets (PBT/Total Assets}	(%)	2.54	5.30	5.74

Return on Investment (ROI) (PBT/Networth)		(0.05)	0.09	0.08

Debt Equity Ratio (Total Liability/Networth)		1.08	0.82	0.63

Current Ratio (Current Asset/Current Liability)		2.53	2.80	2.95

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	No
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

BRIEF ANALYSIS OF FINANCIAL PERFORMANCE:

The financial performance of the Company was impacted by the adverse freight markets during the year. There has been an increase in the gross earnings due to induction of ten new vessels during the year even though freight rates were depressed. However, the same have been offset primarily by an increase in fuel prices. Further the Company has also reported finance cost at Rs.3873.000 Millions during the year which includes Rs.2967.300 Millions on account of exchange loss arising out of revaluation of the foreign currency loans as a result of the depreciation of the Indian rupee to the US Dollar. This exchange loss has been considered as finance cost as per the requirement of the relevant accounting standard. The actual interest outgo in the current year was only Rs.905.700 Millions as against Rs. 639.400 Millions in the earlier year.

INDUSTRY STRUCTURE AND DEVELOPMENTS

World Scenario - Economy and Seaborne Trade

The global GDP growth contracted to 3.8% in 2011, down from 5.2% growth witnessed in 2010 mainly as a result of the ongoing European debt crisis and the sluggish growth of US economy. Some of the other factors that led to this contraction in growth were the shrinking Japanese economy and slower economic growth in China and ‘Other Developing Asia’ with the Indian economy slowing down due to fall in Industrial production.

Seaborne Trade, Fleet and Market

In the ‘Dry Bulk’ segment, global trade was nearly 4 billion tonnes in 2011, growing at a much slower pace of 6.4%compared to a robust 12% growth seen in 2010. The growth was mainly on account of Chinese dry bulk imports which increased by 11%, with imports into the ‘Developing Asia’ region and Europe growing by 9% each. In contrast, Japanese imports shrank from their previous year’s level. In terms of commodities, global iron ore trade rose by 7.5% in 2011while the steam coal and steel products trades grew by 12% and 7% respectively. Grain imports growth slowed down considerably while the Met coal trade actually contracted from its previous year’s volume. On the supply side, the‘ Dry bulk and combi’ fleet registered a substantial growth of 14.8% in 2011, which was more than double the growth in trade. With these unfavourable market conditions, the Dry bulk shipping market witnessed very depressed rates in2011, falling far below their 2010 averages.

In the ‘Crude Oil’ segment, global imports in 2011 were nearly 2 billion tonnes, remaining at almost the same level asin 2010. China’s seaborne crude imports grew by a moderate 3.8% in 2011 as growth in pipeline imports from Russia had a negative impact on seaborne trade. While ‘Other Asia’ also registered a growth in imports, several other major countries / regions namely North America, Europe and Japan witnessed a fall in their respective crude imports. On the supply side, the Crude tanker fleet grew by 6.5% in 2011. As a result of much higher fleet growth as against negligible increase in trade, Crude tanker rates were very depressed, with earnings in 2011 being lowest in 30 years after accounting for inflation.

In the ‘Products’ segment, imports in 2011 were around 0.9 billion tonnes, registering a small increase of 2.3% over the previous year’s volumes. The Product tanker fleet expanded by around 3%. The rates for Product tankers of medium range size improved in 2011 over their 2010 averages, while for the larger sizes the rates fell from their previous year’s levels.

Indian Scenario

As per RBI, India’s GDP growth in 2011-12 declined to around 6.5% from 8.4% in 2010-11. ‘Agriculture’ sector growth in 2011-12 was the lowest at 2.5%, ‘Industry’ sector at 3.9% and ‘Services’ sector at 9.4%. (As per Central Statistical Office, (CSO) Advance estimate of National Income GDP growth rate has been pegged at 6.9%).

According to sources from Ministry of Commerce, the provisional data shows India’s exports in value terms rose by 21%to US$ 303.7 billion in 2011-12, while imports rose by 32.1% to US$ 488.6 billion. As per Indian Port Association (IPA),the quantum of Cargo Traffic at India’s 12 major ports declined by 1.7% in 2011-12 i.e. from around 570 million tonnesin 2010-11 to 560 million tonnes in 2011-12. The largest commodity group comprising the total traffic was POL with around 32% share, followed by Container traffic (22%), ‘Other cargo’ (18%), Iron ore (11%), Thermal Coal (9%), Coking coal (5%) and Fertilizers - Finished and Raw (3%).

The decline in traffic was mainly due to a huge drop of 22% in the traffic at Mormugao, followed by a 9% drop each in traffic at ‘Kolkata and Haldia’ combined and Chennai. In terms of commodities, the decline was mainly on account of a 30%drop in Iron ore exports, followed by 4% decline in Coking coal imports and nearly 1.5% decline in finished fertilizers. The minor ports in India registered a robust double digit growth of 17% in cargo traffic in 2011-12, handling around 370million tonnes with a share of nearly 40% of the 930 million tonnes total cargo handled by both major and non-major (minor) ports. In contrast, the traffic in major ports, accounting for the remaining 60% share of total traffic, witnessed amarginal reduction from its previous year’s volume.7

OUTLOOK :

In the Container segment, major international liner shipping companies continued to experience substantial operating losses in the first quarter of 2012, which was the 5th consecutive loss-making quarter. Despite witnessing improvement from January to June 2012, the average east-west freight rates are expected to fall back again in October- December 2012. Rates in routes other than the main-haul lane remain low even in May 2012. However, with the expansion in fleet expected to be lower than the growth in trade in 2013, market conditions are expected to improve next year with freight rates projected to recover in early 2013.

In tandem with the global scenario, SCI’s container services did not register positive results in 2011-12. During the subsequent six months i.e. from April to September 2012, the freight rates in most sectors / services are expected to show improvement over the previous year’s average levels. However, in the last quarter of 2012 (October–December), rates in the main east-west lane are projected to fall back while the expected recovery in trade in early 2013 remains to be seen. On the other hand, bunker prices, after having increased sharply for a considerable period, have come downto some extent as a result of the economic turmoil in Europe and consequent fall in demand. Overall, considering theabove mentioned developments and projections of fluctuating freight rates and the possibility of somewhat lower bunker prices (though from the high levels prevailing earlier), a slight improvement in the results of SCI’s Container segment could be expected in 2012-13.

SCI has obtained Freight Forwarding and Multimodal Transport Operator (MTO) licences and continues to use its vast experience and large agency network to render 3PL (Third Party Logistics) services to the customers. This helps SCI to retain the clients while generating additional revenue. The prospects of Break bulk services provided by the Company continue to be reasonably bright in respect of the independent Space Charter arrangements being made by SCI for carriage of import cargoes from various locations worldwide. The Company will continue to operate Coastal and Passenger Services successfully by deploying its owned / managed vessels for the Andaman and Nicobar Administration, Geological Survey of India (Ministry of Mines), Ministry of Earth Sciences (Dept. of Ocean Development).

JOINT VENTURE COMPANIES

Irano-Hind Shipping Company (IHSC)

The performance of Irano Hind Shipping Company remains a matter of concern. During the Iranian year ended 19th March 2012 (Iranian year 1390) company earned net profit after tax of Iranian Riyals 430,026 Millions (US$ 35.08 Millions). The consolidated net loss of the joint venture company and its subsidiaries for the Iranian year ended 19th March 2012 stood at Iranian Riyals 14928 Millions (US$ 1.22 Million). The fleet owned by the joint venture company together with its subsidiaries as at 19th March 2012 stood at seven ships with an aggregate of 0.66 million dwt. The Joint Venture Company had recommended issue of bonus shares of Iranian Riyals 120 Billion in the 36th General Assembly meeting held on 21.07.2010 increasing share capital of the company from Iranian Riyals 350 Billion to Iranian Riyals 470 Billion and actual increase was effected in the current year (Year ended 19th March, 2012) after obtaining approvals from competent authorities.

US and European Union authorities in addition to United Nations security council, have imposed sanctions, whereby

IHSC and its subsidiaries, cannot deal in US Dollars or Euros. PandI Cover is also not available from the Insurance Companieswhich are dealing in US Dollars / Euros. The IHSC and group companies have been given “notice of acceleration” by twobankers (DVB Bank and Commerze bank) requiring repayment of all term loan (approx US$ 88 Million) along with pending interest immediately. The matter is receiving the attention at proper level in the Government, as the Company has substantial interest in the joint venture and step down subsidiaries.

SCI’S JOINT VENTURE IN LNG (LIQUEFIED NATURAL GAS) VESSELS

India LNG Transport Company No. 1 and 2 Limited

As on 31st March 2012, both vessels, SS Disha and SS Raahi have carried about 307 cargoes and 277 cargoes of LNG each from the inception of the two Joint Venture Companies (JVC) in May, 2001, namely India LNG Transport Companies No. 1 and 2 Limited The vessels have delivered 77 cargoes equivalent to 5.01 MMTPA in the financial year 2011-12. The Company had extended Shareholders’ loan to the two companies and during the year 2011-12 the joint venture company has repaid an amount of US$ 3.31 million towards Shareholders’ loan and US$ 1.52 million as interest on Shareholders’ loan, to the company. The outstanding amount of Shareholders’ loan as on 31st March 2012 is US$ 24.15million. The Company is managing these 2 LNG tankers independently from 24.12.08 for SS Raahi and 29.12.08 for SS Disha. The Company has been paid US$ 1.23 million towards Management Fee and Accounting fee during the year 2011-12 by the joint venture company.

India LNG Transport Company No 3 Limited

The third JVC, India LNG Transport Company No. 3 Limited, set up to service the Dahej Expansion Project was formed on 21.02.2006. Pursuant to the execution of the TCA (Time Charter Agreement) and other related project agreements viz. SBC (Ship Building Contract) etc., the Loan Agreement was executed on 19.12.2006 by the JVC for a loan of US$ 178.29million. The outstanding Shareholders’ loan by the Company as on 31st March 2011 is US$ 22.62 million. The LNG tanker, M.T. Aseem, was delivered on 16th November, 2009 and transports 2.5 million tons per annum of LNG from Ras Gas, Qatar to Dahej for Petronet LNG Limited’s expansion project. As on 31st March 2012, M.T. Aseem has carried about 86cargoes of LNG from the inception. The vessel has delivered 39 cargoes in the financial year 2011-12. The Company is manning the tanker from inception i.e. delivery of the tanker with its officers and crew and has been paid US$ 66,990/- towards Manning fee during the year

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	31.03.2012	31.03.2011
i. Claim against the company not acknowledged as debts -
A. Claim made by Chokhani International Limited towards dry dock expenses pending before High Court, Chennai	422.500	400.600
B. Forfeiture of Earnest Money Deposit, Cargo Loss, Freight, Demurrage, Slot Payments, Fuel Cost, other operational claims and Custom duty disputed demand. (As certified by the Management)	820.400	921.700
C. Disputed demand of Statutory Dues (As certified by the Management)
a) Income Tax	587.400	917.500
b) Service Tax	651.800	0.000
ii. Guarantees given by the Banks
A. On behalf of the Company	343.600	189.200
B. On behalf of the Joint Venture to the extent of the Company’s share.	366.100	320.000
iii. Undertaking cum Indemnity given by Company	100.000	100.000
iv. Cargo Claims covered by P and I Club	6.600	2.000
v. Bonds / Undertakings given by the Company to Customs Authorities.	868.600	1014.000
vi. Corporate Guarantees / Undertakings	Not Ascertainable	Not Ascertainable

FIXED ASSETS:

Tangible Assets:

· Fleet

· Ownership Containers

· Freehold Land

· Buildings

· Ownership Flats and Residential Buildings

· Furniture, Fittings and Equipments etc

· Motor Vehicles

Intangible Assets

· Computer Software

AS PER WEBSITE DETAILS:

PRESS RELEASE

The Shipping Corporation of India Limited (SCI) accepted delivery of a Panamax Bulk carrier, m.v. Vishva Preeti today, 30th October, 2012.

The vessel is the last of the series of four Panamax bulk carriers ordered by SCI with STX (Dalian) Shipbuilding Company Limited, China. Orders for these vessels were placed in August 2008.

These vessels were ordered to replace SCI’s Daewoo series Handymax bulk carriers which were built in 1986/87

and have been recently phased out. These vessels are of higher capacity of over 80,000 dwt each, compared with conventional Panamax vessels which are of about 75,000 dwt.

“m.v. Vishva Preeti” has a gross tonnage of 44,007 tonnes and deadweight of 80,250 tonnes. The vessel is dually classed with LR and IRS and has been built to comply with the latest and most stringent international regulations.

India is one of the growth drivers for the world economy recording impressive GDP growth compared to the developed economies. Industrial and infrastructural development plays a major role to sustain this growth. As a National carrier, SCI has been aiming to increase its presence in India’s ever increasing dry bulk trade and strengthening the bulk carrier fleet would help SCI contribute to this growth.

With the addition of this vessel, SCI’s fleet strength stands at 80 vessels of 5.85 million dwt. Acquisition of this vessel is in line with SCI’s strategy of maintaining a modern and young fleet of vessels. The Company has 19 vessels on order at present out of which 4 vessels are scheduled for delivery by the end of 2012.

SCI OBSERVES VIGILANCE AWARENESS WEEK 2012

29th October, 2012

As per the instructions of the Central Vigilance Commission (CVC), the Vigilance Awareness Week 2012 (VAW 2012) is being observed in SCI from 29th October, 2012 to 3rd November, 2012. The inauguration of VAW 2012 began today at 1100 hrs. with administering of Vigilance Pledge by Shri S.Hajara, Chairman and Managing Director. Shri M.B. Sagar, Chief Vigilance Officer read out the messages received from the dignitaries viz. Hon’ble President, Vice President, Prime Minister, Leader of Opposition and the Central Vigilance Commission.

The 5th edition of “SCI Voyager” was released by Shri S.Hajara, CandMD on this occasion. The SCI Vigilance Division has lined up various competitions such as Essay Writing, Speech Competition, Slogan, Cartoon/Poster competition etc.during this week. Further, Shri M.B.Sagar, CVO will be delivering a lecture on “Integrity Pact” at 1100 hrs. on 30.10.2012. Shri Ramesh Chandra, Chief Technical Examiner from the Central Vigilance Commission has been invited to deliver a talk on “Transparency in Public Procurement”on 1st November 2012 at 1100 hrs.

The Valedictory function of VAW 2012 will be held on 2nd November 2012 from 3.00 pm onwards.

PRESS RELEASE

The Shipping Corporation of India Limited (SCI) accepted delivery of a Panamax Bulk carrier, m.v. Vishva Vijay today, 25th October, 2012.

The vessel is the third of the series of the four Panamax bulk carriers ordered by SCI with STX (Dalian) Shipbuilding Company Limited, China. Orders for these vessels were placed in August 2008.

These vessels were ordered to replace SCI’s Daewoo series Handymax bulk carriers which were built in 1986/87 and have been recently phased out. These vessels are of higher capacity of over 80,000 dwt each, compared with conventional Panamax vessels which are of about 75,000 dwt.

“m.v. Vishva Vijay” has a gross tonnage of 44,010 tonnes and deadweight of 80,312 tonnes. The vessel is dually classed with LR and IRS and has been built to comply with the latest and most stringent international regulations.

With the addition of this vessel, SCI’s fleet strength stands at 79 vessels of 5.77 million dwt. Acquisition of this vessel is in line with SCI’s strategy of maintaining a modern and young fleet of vessels. The Company has 20 vessels on order at present out of which 5 vessels are scheduled for delivery by the end of 2012.

The Shipping Corporation of India Limited, Wins the 1st Prize for the Best Activity Report In the 23rd Regional Meet held by Forum of Women in Public Sector, WR.

The forum of Women in Public Sector and its strong network has been functioning since 1989 under the Aegis of SCOPE to promote growth and development of women in PSUs. Central PSUs, Nationalised Banks and Insurance companies are Corporate Life Members of WIPS and about 10,000 women employees of PSUs from across the country are individual members. SCI is one of the Corporate Life Member of WIPS. Forum of Women in Public Sector held its 23rd Annual Regional Meet on 13th October, 2012 at Hotel Kalasagar, Mumbai-Pune Road, Kasarwadi, Pune 411034 on the theme “Informed Women – Empowered Women”.

The Best Activity Report award was instituted by the Forum since last 4 years, for giving recognition to best PSUs /PS banks, who have done commendable work for development of women in their companies. The criteria for evaluation for the Best Activity Report involved WIPS activities performed in Organisation, WIPS Membership drive, Database submission, CSR and Social activities conducted, Support services in their respective Organisation, participation in the Training programmes, Support to WIPS from the Organisation, training and development activities conducted by the organisation for women employees.

The Shipping Corporation of India Limited won the 1st Prize for the BEST ACTIVITY REPORT. The award was presented by the Chief Guest present on the occasion, Mayor of Pimpri-Chinchwad Municipal Corporation Smt. Mohinitai V. Lande

Around 165 delegates from various PSUs across the Western Region participated in this Regional Meet.

SCI DECLARES ANNUAL RESULTS

The Shipping Corporation of India (SCI) declared its audited annual results for the year 2011-12 posting a loss of Rs.4282.100 Millions as compared to profit of Rs. 5673.500 Millions during 2010-11. There has been an increase in the operating revenue of about 8% due to delivery of nine new vessels during the year, however the same have been offset primarily by an increase in bunker cost of almost 91% (Rs.7430.000 Millions), increase in depreciation cost of Rs.1440.000 Millions due to induction of new vessels and increase in finance cost by Rs.3230.000 Millions when compared to previous year. Of the increase in finance cost, the amount charged in accordance with Accounting Standard Interpretation 10 to Accounting Standard AS 16 is Rs. 2970.000 Millions.

The Company owns 75 ships of 5.52 million dead weight tonne and is present in most segments of shipping including the container, bulk carrier, tanker and the offshore segment. Inspite of the above losses, SCI, India’s largest and premier shipping company has sound fundamentals with its net worth of Rs. 67340.000 Millions and strong cash balances.

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 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 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.54.63
UK Pound	1	Rs.88.40
Euro	1	Rs.71.86

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	7
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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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	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
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

1774.500

7859.300

14424.100

1759.100

18953.900

0.000

0.000

44770.900

6037.600

10234.000

1442.400

17714.000

17956.500

27056.900

(9.59)

9.66

(8.79)

NA

2.54

5.74

(0.05)

1.08

0.63

2.53

2.95

Unit