To the Members
Your Directors have pleasure in presenting the 67th Annual Report on theworking of your Company for the financial year ended 31st March 2017.
The year under report covers a period of 12 months ended on 31st March2017.
The comparative position of the working results for the year under report vis-a-visearlier year is as under:
| || ||(' in Crores |
| ||2016-17 ||2015-16 |
|Gross Earnings ||3592 ||4215 |
|Gross Profit (before interest depreciation & exceptional items & tax) ||915 ||1503 |
|Less : Interest ||172 ||172 |
|Depreciation and Impairment ||566 738 ||542 714 |
|Profit before exceptional items & tax ||177 ||789 |
|Exceptional items ||- ||- |
|Provision for Taxation ||(42) ||(36) |
|Net Profit ||135 ||753 |
The financial statements for the year 2016-17 are the first financial statements theCompany has prepared under Ind AS (Indian Accounting Standards)
The financial statements for the year 2015-16 have been restated in accordance with IndAS for comparative information.
The above figures have been extracted from the Standalone Financial Statements as perIndian Accounting Standards (Ind-AS). The Financial Statements of the company have beenprepared in accordance with Ind-AS notified under the Companies (Indian AccountingStandards) Rules 2015 ( as amended) read with Section 133 of the Companies Act 2013 tothe extent applicable and current practices prevailing within the Shipping Industries inIndia. For the purpose of transition to Ind-AS the Company has followed the guidanceprescribed in IND-AS 101. First time adoption of Indian Accounting Standards with effectfrom transition date of 1st April 2015.
A sum of ' 7.5 crores has been transferred to Tonnage Tax Reserve for financial year2016-17. The working results for your company for the year 2016-17 shows a net profit of '135.52 crores.
After adjusting an opening credit balance of ' 65.16 crores (being balance retainedearnings brought forward from previous year) and adding items of other comprehensiveincome of ' 8.38 crores that are recognised directly in retained earnings there is acredit balance in retained earnings of ' 201.56 crores as on 31st March 2017.
Brief Analysis of Financial Performance
FY 2016-17 marks the first annual accounts of your company under IND-AS withcomparatives of FY 2015-16 being restated. SCI has reported a net profit of ' 135.52Crores for financial year 2016-17. Reduction in operating revenues of tanker and offshoresegments coupled with an increase in repair costs has resulted in a reduction in netprofits. The Consolidated net profit for the company for Financial Year 201617 was '175.62 crores.
Performance and Financial positions of joint ventures included in ConsolidatedFinancial Statements:
| || || || || ||Fig (' in lacs) |
|Particulars ||ILT 1 ||ILT 2 ||ILT 3 ||ILT 4 ||ICSL |
|As on ||31.03.2017 ||31.03.2017 ||31.03.2017 ||31.12.2016 ||31.03.2017 |
|Total Income ||17628 ||18078 ||17912 ||1089 ||- |
|PAT ||6914 ||7506 ||743 ||-517 ||-9 |
|Equity capital ||14 ||14 ||6 ||27528 ||5 |
|Number of equity shares ||10000 ||10000 ||10000 ||42448300 ||50000 |
|EPS (Rs/share) ||69140 ||75060 ||7430 ||(1.21) ||-18 |
|Dividend ||0 ||0 ||0 ||0 ||0 |
|Net worth ||16646 ||17190 ||-19870 ||14512 ||-4 |
Net Impact on Consolidated profits for the year ended 31st March 2017 isincrease of ' 4010 lacs upon consolidation of above joint ventures and subsidiary and onNet worth is an increase of ' 6135 lacs.
1.0 Fleet Position during the Year:
During the year under report your company has taken delivery of one Multi-PurposeSupport Vessel (MPSV) (named SCI Sabarmati) and has disposed off one Bulk carrier (MvGoa). Thus the overall fleet of SCI was almost constant at 69 vessels of 5.85 million DWTat the end of the year.
Fleet Profile during the Year
|Particulars || |
As on 1.4.2016
As on 31.3.2017
| ||No. ||DWT ||No. ||DWT ||No. ||DWT ||No. ||DWT |
|1. (a) Crude Oil Tanker ||21 ||3608001 ||- ||- ||- ||- ||21 ||3608001 |
|(b) Product Tankers ||14 ||908059 ||- ||- ||- ||- ||14 ||908059 |
|(c) Gas Carriers ||2 ||35202 ||- ||- ||- ||- ||2 ||35202 |
|2. Bulk Carriers ||17 ||1113889 ||- ||- ||1 ||45801 ||16 ||1068088 |
|3. Liner Ships ||5 ||202413 ||- ||- ||- ||- ||5 ||202413 |
|4. Offshore Supply Vsls. ||9 ||20150 ||1 ||3352 ||- ||- ||10 ||23502 |
|5. Passenger-Cum-Cargo Vessels ||1 ||5140 ||- ||- ||- ||- ||1 ||5140 |
|Total ||69 ||5892854 ||1 ||3352.31 ||1 ||45801 ||69 ||5850405 |
2.0 During the period under report the following vessel was inducted in SCI fleet:
|Vessel Name ||Type ||Yard Built ||DWT |
|SCI Sabarmati ||MPSV ||2013 ||3352.31 |
2.1 During the same period the following vessel were disposed off from SCI fleet:
|Vessel Name ||Type ||Year Built ||DWT |
|MV Goa ||Bulk Carrier ||1998 ||45801 |
2.2 At the end of the year 2016-17 the Company had no new vessels on order. Howeveryour company had signed MOAs for acquisition of a secondhand Suezmax tanker and a resaleMPSV. These vessels were delivered on 26.4.2017 and 07.07.2017 respectively. Two vesselsviz; MV Indira Gandhi and MV Rajiv Gandhi were sold on 22.05.2017 and 07.07.2017respectively.
Particulars of Loans Guarantees and investments.
Details of Loans Guarantees and Investments are given in the notes to financialstatements.
Extract of Annual Return
In accordance with section 134 (3) (a) and section 92(3) of the companies Act 2013read with relevant rules an extract of annual return in form MGT-9 as on 31st March 2017is appended to the Directors' Report.
Subsidiaries and Associates
Your company has one subsidiary Company and has six Joint Ventures. Investment insubsidiary Inland and Coastal Shipping Limited was done on 29th September2016. It is a wholly owned subsidiary of your company. Pursuant to section 129(3) of theCompanies Act 2013 a statement containing salient features of our subsidiary andassociates companies in form AOC-1 is appended to the Director's Report.
In accordance to section 136 of the Companies Act 2013 the audited financialstatements of the company are available on our website www.shipindia.com .
Particulars of contracts/arrangements with related parties
Particulars of contracts/arrangements with related parties referred to in Section188(1) of the Companies Act 2013 in the prescribed form AOC-2 is appended to theDirector's Report. The details are also available in Note 29 under Notes toFinancial statements'.
Particulars of Employees
In accordance with Ministry of Corporate Affairs notification no. GSR 463(E) dated 5thJune 2015 Government Companies are exempt from Section 197 of the Companies Act 2013and its rules thereof.
In accordance with the section 134(3)(n) of the Companies Act 2013 the Risk Managementis forming a part of the Corporate Governance Report.
Conservation of Energy Technology Absorption
The information pertaining to conservation of energy technology absorption is forminga part of the Management Discussion and Analysis Report.
|Particulars ||2016-17 ||2015-16* |
|Foreign exchange earned & saved including deemed earned & saved ||3555.76 ||3771.57 |
|Foreign exchange used including deemed used ||3675.89 ||3678.42 |
* Figures as per IGAAP
Expenses on entertainment foreign tours etc - FY 2016-17
During the year under report your Company spent ' 32 lakhs on entertainment ' 393lakhs on publicity and advertisements and ' 335 lakhs on foreign tours of Company'sexecutives.