Shipping Corp net loss widens at Rs 54.87 cr in Q1

Total income, however, rose by over 28% to Rs 1,262.99 crore

Shipping Corporation of India (SCI) today reported net loss at Rs 54.87 crore for the quarter ended June 30, 2012, largely due to increased interest payments.

This is the second successive quarter, in which the state-owned shipping firm has reported net loss. It had reported a net loss of Rs 5.86 crore during the corresponding April-June quarter of the previous fiscal.

Total income of the company, however, rose by over 28% to Rs 1,262.99 crore during the quarter against Rs 985.13 crore of the first quarter of FY12, it said in a filing to the BSE, adding that it also includes Rs 42.97 crore profit on sale of ships.

 

Besides, its total expenditure also rose by nearly 23% to Rs 1,225.91 crore during the quarter.

However, the company's profit was impacted by over four and half times increase in its interest payments, amounting to Rs 110.38 crore, during the quarter. Of this, Rs 76.14 crore was forex loss, which the company accounted in interest payments citing Indian accounting norms.

Moreover, it also included a forex loss of Rs 558.29 crore in the segment -- capitalised to cost of vessel and a forex gain of Rs 50.79 crore in other expenditure segment.

However, company's auditors PSD & Associates and Sarda and Pareek have questioned Shipping Corporation's accuracy of exchange gain/loss calculations in respect of customer reconciliation/advance received from customers recognised on revaluation as per the Accounting Standards-11.

The accuracy of exchange gain or loss "remains unverifiable and effect thereof on the results remains unascertainable, wherein appropriate adjustments or settlements of Indian rupee/foreign currencies balances have not been in carried out prior to revaluation of such balances," the auditors said in their limited review report for the quarter.

Responding to it, the company said in its filing that it has "developed software to match the collectibles and collections related to customers" and has made substantial progress in this matter till June 30, 2012.

It further said the process will be completed by September 30, 2012, and "the management expects that the impact of the same on the results would not be material."

Shares of the company today closed at Rs 53.75 apiece on the BSE, down 1.92% from the previous close.