You are here » Home » Companies » Company Overview » Shipping Corporation of India Ltd

Shipping Corporation of India Ltd.

BSE: 523598 Sector: Infrastructure
NSE: SCI ISIN Code: INE109A01011
BSE 13:27 | 22 Feb 36.15 0.75
(2.12%)
OPEN

35.50

HIGH

36.25

LOW

35.50

NSE 13:19 | 22 Feb 36.10 0.65
(1.83%)
OPEN

35.70

HIGH

36.25

LOW

35.60

OPEN 35.50
PREVIOUS CLOSE 35.40
VOLUME 15834
52-Week high 80.70
52-Week low 34.50
P/E 19.44
Mkt Cap.(Rs cr) 1,684
Buy Price 36.10
Buy Qty 259.00
Sell Price 36.20
Sell Qty 346.00
OPEN 35.50
CLOSE 35.40
VOLUME 15834
52-Week high 80.70
52-Week low 34.50
P/E 19.44
Mkt Cap.(Rs cr) 1,684
Buy Price 36.10
Buy Qty 259.00
Sell Price 36.20
Sell Qty 346.00

Shipping Corporation of India Ltd. (SCI) - Director Report

Company director report

To the Members

Your Directors have pleasure in presenting the 68th Annual Report onthe working of your Company for the financial year ended 31st March

2018.

Accounting Year

The year under report covers a period of 12 months ended on 31st March2018.

FINANCIAL PERFORMANCE

The comparative position of the working results for the year underreport vis-a-vis earlier year is as under:

(Rs in Crores)

2017-18

2016-17

Gross Earnings

3617

3592

Gross Profit (before interest depreciation & exceptional items & tax)

820

923

Less : Interest

180

172

Depreciation and Impairment

610

566

790

738

Profit before exceptional items & tax

30

185

Exceptional items

-

-

Provision for Taxation

224

(43)

Net Profit

254

142

The above figures have been extracted from the standalone financialstatements as per Indian Accounting Standards (Ind-AS). The financial statement for theyear 2016-17 has been restated to comply with Ind AS 8.

Appropriations:

The working results for your company for the year 2017-18 shows a netprofit of Rs.253.75 crores. A sum of Rs. 9.07 crores has been transferred to CapitalReserve for financial year 2017-18. After adjusting an opening credit balance of Rs.166.95 crores (being balance retained earnings brought forward from previous year) andadding items of other comprehensive income of Rs. 11.03 crores that are recognizeddirectly in retained earnings there is a credit balance in retained earnings of Rs.422.67 crores as on 31st March 2018.

Brief Analysis of Financial Performance

SCI has reported a net profit after tax of Rs. 253.75 crores for thefinancial year 2017-18. The freight and charter hire rates in the tanker segment continuedits downward trend due to depressed shipping market. Efficient capacity utilization ofoffshore and liner vessels coupled with cost control measures resulted profit in liner andoffshore segment. During the year SCI has reversed the deferred tax liability on shiftingof base year of indexation from year 1981 to 2001 as announced in Union Budget 2017 whichhas resulted in reduction in liability by Rs. 284.27 Cr. The consolidated net profit forthe company for Financial Year 2017-18 was Rs. 306.50 crores.

Performance and Financial positions of joint ventures and subsidiaryincluded in Consolidated Financial Statements:

Fig (Rs in lacs)

Particulars

ILT 1

ILT 2

ILT 3

ILT 4

ICSL

As on

31.03.2018

31.03.2018

31.03.2018

31.03.2018

31.03.2018

Total Income

17056

15659

17218

22278

0.21

PAT

7311

5954

848

5450

-0.14

Equity capital

14

14

6

27528

5

Number of equity shares

10000

10000

10000

42448300

50000

EPS (Rs/share)

73110

59540

8480

12.84

-0.27

Dividend

0

0

0

0

0

Net worth

25537

24800

-14713

25006

-5

The Consolidated profits for the year ended 31st March 2018 isincreased by Rs 52.75 crores upon consolidation of above joint ventures and subsidiary andon Net worth there is an increase of Rs 136.61 crores.

1.0 Fleet Position during the Year:

During the year under report there has been an addition of threevessels (Desh Abhimaan SCI Saraswati and Nanda Devi) and deletion of six vessels (IndiraGandhi Rajiv Gandhi SCI Ratna B.C. Chatterjee A.K. Azad and Harshavardhana) to SCI'sfleet. Thus the overall fleet of SCI stood at 66 vessels of 5.86 million DWT at the end ofthe year.

Fleet Profile during the Year
Particulars

As on 1.4.2017

Additions

Deletions

As on 31.3.2018

No.

DWT

No.

DWT

No.

DWT

No.

DWT

1. (a) Crude Oil Tanker

21

3608001

1

158710

1

92687

21

3674024

(b) Product Tankers

14

908059

-

-

1

45134

13

862925

(c) Gas Carriers

2

35202

1

53503

-

-

3

88705

2. Bulk Carriers

16

1068088

-

-

16

1068088

3. Liner Ships

5

202413

-

-

2

57913

3

144500

4. Offshore Supply Vessels

10

23502

1

3719

1

1983

10

25238

5. Passenger-Cum-Cargo Vessels

1

5140

-

-

1

5140

0

0

Total

69

5850405

3

215932

6

202857

66

5863480

2.0 During the period under report the following vessel was inductedin SCI fleet:

Vessel Name Type

Yard Built

DWT

Desh Abhimaan Suezmax Tanker

2007

158710

SCI Saraswati MPSV

2017

3719

Nanda Devi VLGC

2001

53503

2.1 During the same period the following vessels were disposed offfrom SCI fleet:

Vessel Name Type

Year Built

DWT

Indira Gandhi Container vessel

1993

28948

Rajiv Gandhi Container vessel

1994

28965

SCI Ratna * AHTSV

2011

1983

Bankimchandra Chatterjee Product Tanker

1994

45134

Abul Kalam Azad Crude Oil Tanker

1999

92687

Harshavardhana Passenger-cum-cargo carrier

1974

5140

* - SCI Ratna capsized on 21.11.2017

2.2 At the end of the year 2017-18 the Company did not have anynew build vessels.

2.3 Particulars of Loans Guarantees and investments

Details of Loans Guarantees and Investments are given in the notes tofinancial statements.

2.4 Extract of Annual Return

In accordance with section 134 (3) (a) and section 92(3) of thecompanies Act 2013 read with relevant rules an extract of annual return in form MGT-9 ason 31st March 2018 is appended to the Directors' Report. The extract of Annual Return isavailable at http://www.shipindia. com/investor-relations/Notice_shareholders.aspx

2.5 Subsidiaries and Associates

Your company has one subsidiary Company and has six Joint Ventures.Pursuant to section 129(3) of the Companies Act 2013 a statement containing salientfeatures of our subsidiary and associate companies in form AOC-1 is appended to theDirector's Report.

In accordance to section 136 of the Companies Act 2013 the auditedfinancial statements of the company are available on our website www. shipindia.com.

2.6 Particulars of contracts/arrangements with related parties

Particulars of contracts/arrangements with related parties referred toin Section 188(1) of the Companies Act 2013 in the prescribed form AOC-2 is appended tothe Director's Report. The details are also available in Note 31 under ‘Notes toFinancial statements'

2.7 Particulars of Employees

In accordance with Ministry of Corporate Affairs notification no. GSR463(E) dated 5th June 2015 Government Companies are exempt from Section 197 of theCompanies Act 2013 and its rules thereof.

2.8 Risk Management

In accordance with the section 134(3)(n) of the Companies Act 2013 theRisk Management is forming a part of the Corporate Governance

Report.

2.9 Conservation of Energy Technology Absorption

The information pertaining to conservation of energy technologyabsorption is forming a part of the Management Discussion and Analysis

Report.

3.0 Foreign exchange earnings and outgo

(Rs in crores)

Particulars

2017-18

2016-17

Foreign exchange earned & saved including deemed earned & saved

3459.77

3555.76

Foreign exchange used including deemed used

3767.53

3675.89

3.1 Expenses on entertainment foreign tours etc FY 2017-18

During the year under report your Company spent Rs.21 lakhs onentertainment Rs.97 lakhs on publicity & advertisements and Rs.269 lakhs on foreigntours of Company's executives.