DIRECTORS' REPORT

To the Members of Essar Shipping Limited

Your Directors are pleased to present the Sixth Annual Report and Audited Financial Statements of the Company for the financial year ended March 31, 2016.

DIVIDEND

In view of loss during the year 2015 -16, the Board of Directors has not recommended any dividend for the year under review.

MANAGEMENT DISCUSSION AND ANALYSIS

Overview of the World Economy & Shipping Industry

Global growth remains moderate, with uneven prospects across the main countries and regions. Growth rate is expected to be 3.4 percent in 2016 and 3.6 percent in 2017, as estimated by International Monetary Fund. Relative to last year, the outlook for advanced economies is improving, while growth in emerging market and developing economies is projected to be lower, primarily reflecting weaker prospects for some large emerging market economies and oil-exporting countries.

Throughout the last century shipping industry has seen a general trend of increases in total trade volume. Increasing industrialization and the liberalization of national economies have fuelled free trade and a growing demand for consumer products. Following several years of incredibly buoyant shipping markets, much of the international shipping industry has fallen prey to the worldwide economic downturn.

Overview of the Indian Economy

Notwithstanding the current situation, the longer term outlook for the industry remains good. The world's population continues to expand, and emerging economies will continue to increase their requirements for the goods and raw materials that shipping transports so safely and efficiently. Emerging economies such as India have undertaken several initiatives such as development of coastal shipping, advanced technology ports, incentives to the domestic ship repair and ship building industry, port led development, revival of the manufacturing sector & infrastructure development of the country as a whole. Amongst the developing economies, IMF expects India to report the highest GDP growth of 7.5% in 2016-17 against the growth of world economy.

As per the latest Global Economic Prospects (GEP) report by World Bank, India is leading The World Bank's growth chart for major economies. India's maritime trade is expected to grow at a CAGR of 9.6% increasing India's share to the global sea borne trade to 17% by 2025. Thus, leading to an opportunity to increase cargo handling capacity from 1Bn MTPA to 2.5 Bn MTPA.

BUSINESS PERFORMANCE, OPPORTUNITIES AND OUTLOOK

The business performance is attributed to the demand & supply in the world trade industry. With focus on crude and dry bulk carriers, port to plant logistics and oilfield services, your Company intends to build an integrated value chain by providing end-to-end logistics solutions to its customers in a very cost effective manner.

a) Sea Transportation Business

The Company currently operates a diversified fleet of 15 vessels which includes Very Large Crude Carriers, Bulk carriers such as Capsize, Mini-capes, Supramaxes and Handy-size. Company's revenue has declined in the recent past due to decline in charter rates as a result of continuous slowdown in the Shipping industry. The sector is in a crisis mode as it navigates oil price volatility, a drop in global demand and a glut of supply in ship capacity. The benchmark Baltic Dry Index, which tracks sea trade prices, hit an all-time low of 290 in February'16. It's recovered somewhat since then, but prospects still appear bleak. The shipping industry is experiencing its largest dry bulk market recession since the 1980s. The uncertain global economic outlook and the increased imbalance between supply and demand have led to historical low freight rates.

Given the current oversupply of vessels in the marketplace that has built up over the past five years, rates are expected to remain at depressed levels for at least two more years as the market struggles to find a new equilibrium.

Your company is taking a series of initiatives to weather the difficult market conditions on the operational front as well as on the financing end to make a sustainable business model for its shipping business. The initiative includes using a collective mix model for deployment of vessels into long term contracts to ensure assured returns & to employ few vessels on spot contracts to take advantage of the volatility in the market. In addition to the same, the company plans to optimise its fleet by scrapping its older tonnage (commercially non- viable) & therefore reduce OPEX in the subsequent financial year. Further your Company has provided a business plan to its lenders on its plan to refinance the existing borrowings in line with the useful life of its assets. All these initiatives will insure sustainable operations in the current challenging market conditions in the shipping industries especially in the dry bulk segment.

Dry Bulk Market

Dry-bulk vessels aren't in demand, principally because China's industrial slowdown has reduced its appetite for raw materials such as iron ore, bauxite and cement. Despite the reduction, the import demand of emerging developing economies, in particular China and India, remained the main driver of growth in dry bulk cargo shipments in 2014.

The state of the dry bulk market especially indicates that economies worldwide are likely to stay weak, much to the disappointment of central banks, FX traders, miners, steel makers, trading houses, and commodity economies.

The dry bulk shipping market is not expected to return to profitability until 2017, despite a modest recovery in earnings anticipated over the next two years.

So far this year there have been a record number of dry bulk demolitions, and at a younger age. The year 2014- 15 witnessed the highest number of demolitions increased to 36% from 2013 while deliveries increased a mere 7.7%. With the older tonnage being replaced with a young fleet, the year also witnessed highest number of lay ups in the industry. All this effecting a net change of 2.2% in comparison to 2.9% in 2014 in the global dry bulk fleet. While some improvement in earnings through 2016 is expected, this is unlikely to be sufficient for freight rates to reach breakeven. However, the sector is anticipated to return to profitability by 2017, provided current rates of demolitions persist and ship owners refrain from placing new orders.

India's thermal coal imports are however, projected to grow, which may compensate the decline in coal transport caused by China's reduced coal import. With growing impetus to the power sector by the Indian government, coal trade is expected to increase by 10-12 % in the following year while the Steel industry is expected to ramp up its capacity from the current 81% to 83% utilisation levels with an estimated increase in growth of 6-7% in the year 2016. Overall, the trade growth is projected to remain steady in short term.

Tanker Market

Crude oil tankers are classified according to their sizes as Ultra Large Crude Carriers (ULCC), Very Large Crude Carriers (VLCC), Suezmax, Aframax, Panamax, Long Range (LR) and Medium Range (MR) tankers.

In stark contrast to dry bulk carriers, tankers that transport oil have in recent months enjoyed their best earnings in years. As crude prices have plummeted, bargain-buying has driven up demand.

Demand for oil tankers and the rates they command have surged to their highest levels since 2008 in the past months.

China has been looking to boost strategic reserves of crude, taking advantage of multi-year lows in prices, which has helped the oil tanker market rally. Earlier this month China said it more than doubled the size of its strategic crude oil reserves between November 2014 and the middle of this year, a rate exceeding analysts' estimates.

Increasing crude output will drive search for new markets for the produce, leading to expansion in trade routes. Reduced ordering, continued slippages and sizeable scrappage of old vessels have caused net addition in fleet to remain at a moderate level. The scrapping of tankers, which picked up in 2011, has also shrunk the fleet adding to its advantage. Tankers witnessed a net change of 3.4 % in 2015 in comparison to 1.4 % in 2014 having a net addition of 16,718k dwt in the recent year.

(b) Oilfields Services Business

Offshore Segment:

As the oil price has tumbled since June 2014, Exploration & Production (E&P) companies have continued to curb discretionary spending, including both brownfield development investments and exploration activity, and sanctioned few projects with near-term start-up an effort to match near or medium term investments with operating cash flow. The absence of oil price stabilization and clarity on future investment capacity is also continuing to postpone investment decisions for new longer term projects. The short-term nature of supplier contracts is also resulting in pricing concessions being realized quickly, enabling the E&P's to drill more for less.

Demand projections will remain erratic given the current crude prices. The looming oversupply of floating rigs that has been a feature of the market for some time has been joined by a sudden, significant drop in oil prices, resulting in a less favorable outlook for drilling contractors. On the back of lower oil price projections, floater demand is expected to drop almost 50% from 2014 levels to approximately 150 rigs (Pareto 16-Mar-2016). With few new contracts with near term start-up and some more terminations expected as oil companies right-size their drilling capacity, the 150 rig level is expected to be reached around YE'2016 or early 2017, and a recovery is expected after that. Should the oil price take another hit and remain volatile for some more time, the demand recovery would be postponed further.

The marketed utilization in the worldwide semisubmersible market is expected to further drop to an average of 61.7% in 2016 from the December 2015 level of 67.4%. The marketed utilization of the worldwide jackup market is expected to drop from 73.2% in December 2015 to an average of 66.7% in 2016. The dayrate for 2G/3G mid water floaters is expected to be in the range of $100,000 to $110,000 against a dayrate levels of USD 190,000 a year back.

The oilfields services business of your company has been going through extremely challenging market conditions due to continuous low crude oil prices. This has resulted in various assets of the Company being unemployed for prolonged duration resulting into financial stress. The Management of the oil field business is in active discussion with its creditors, both lenders and vendors to reschedule/extend the payment obligations.

Onshore Segment:

Considering the market for onshore drilling services in India, it has been highly skewed towards the customers such as ONGC, Oil India Limited and Indian Oil Corporation Ltd. In the regime of 12th five year plan, the government is expected to focus majorly on E&P activities, including intensive exploration of existing hydrocarbon reserves and geographical focus on the east coast for exploring oil fields. While ONGC and IOC, are expected to make substantial investments in exploration activities, it is essential to capitalize upon key opportunities that are put forth to maximize deployment of land rig assets on longer duration with these companies. Apart from these two, in the private sector, the E&P companies like Cairn Energy & other marginal field operator in India are expected to increase their spending on exploration of wells. This apart, development of the unconventional energy sources such as shale gas & CBM poses larger opportunities for the deployment of land rig business.

SUBSIDIARIES

As on March 31, 2016, your Company has five direct subsidiaries and three indirect subsidiary. Essar Oilfields Services Limited, Mauritius; Arkay Logistics Limited, India (Formerly known as Essar Logistics Limited); Energy Transportation International Limited, Bermuda; Energy II Limited, Bermuda; and Essar Shipping DMCC (incorporated/ registered on August 5, 2015) are direct subsidiaries of the Company. Essar Oilfield Services India Limited, Cosmic Driling Services Limited (Incorporated / Registered on March 15, 2016) and Essar Oilfields Middle East DMCC are step down subsidiary of the Company.

A report on the performance and financial position of each of the subsidiaries and associates companies as per the Companies Act, 2013 is provided as Annexure to this report and hence not repeated here for the sake of brevity. The Policy for determining material subsidiaries is available on Company's website www. essar.com.

CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the Companies Act, 2013 and Accounting Standard (AS) - 21 on Consolidated Financial Statements read with AS - 23 on Accounting for Investments in Associates, the audited Consolidated Financial Statements are provided in the Annual Report. The audited Consolidated Financial Statements together with Auditors' Report thereon form part of the Annual Report.

AWARDS AND RECOGNITIONS

• In August 2015, your Company received the 'Bulk Operator of the Year' award at the Gateway Awards, for the fourth time consecutively, in appreciation of the impressive performance in dry bulk segment for the year 2014-15. The Gateway Awards is one of the most coveted awards in the maritime industry honouring individuals, organizations and companies from across India's maritime industry. The awards promote best practices, innovation and motivation encompassed in the performance of such companies that have contributed to the Indian maritime industry.ESL was recognized apart from its performance for the initiatives taken in the areas of safety, environment, technological innovation for fleet operations & sustainability reporting amongst others.

• ESL also won the Samudra Manthan award organized by Bhandarkar Shipping Events for the "Line of the Year (Dry Bulk) - Diamond category'' recognizing the companies operational performance in the year 2014-15 in the Dry Bulk category

• "Sailor Today Awards" that recognize talent & performance among employees in the Shipping Industry awarded Ms. Sunita Kotian (Fleet personnel department) with the "Exemplary Achievement Award for Women on Shore" in the Indian Shipping industry. Ms. Kotian has been associated with ESL for 29 years & has contributed significantly to the growth of the company. Our company focuses on recognizing talent within the organization & ensuring business excellence with such employee engagement practices.

SUSTANABILITY REPORTING

Since the launch of the first sustainability report by the Company for the year 2010-11, the Company has demonstrated progress based on a systematic approach of integrating sustainability into the business. Over the years, the focus on energy efficiency has helped reduce the costs and environmental footprint related to the shipping business.

The Company's fifth Sustainability Report titled, "Sustainability- A process for +ve Change has been released on March 31, 2016. Most of the sustainability indicators have shown improvement over the years. During the year, further steps have been initiated to strengthen the sustainability governance framework. The sustainability report is available at <http://www.essar.com/upload/pdf/> Essar Sustainability Report Final.pdf.

The report has been independently audited as per Global Reporting Initiative (GRI ) 2011& assured by DNV GL Business Assurance using DNV's Verification Protocol for Sustainability Reporting.

HUMAN RESOURCE

Your Company believes that employee competence and motivation are necessary to achieve its business objectives. Your Company has undertaken many training initiatives to enhance technical and managerial competence of the employees and to further leverage their capabilities to enhance their performance. The Company has taken a series of initiatives to enhance emotional and intellectual engagement of employees. During the year under review, the Company held many employees engagement programs at the Company premises and outside. Families of employees were invited and attended these programs.

The Company has policies on conduct, sexual harassment of women at workplace, whistle blower, corporate governance, insider trading etc. guiding the human assets of the Company. For the year under review, there was no instance of the sexual harassment reported pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

DIRECTORS

In accordance with the provisions of the Companies Act, 2013 and the Article of Association of the Company, Ms. S. Gayathri retires by rotation at the ensuing Annual General Meeting and being eligible has offered herself for re-appointment. The Company has received requisite notice in writing from a member proposing Ms. S. Gayathri for appointment as Director.

The brief resume of the Director being re-appointed, the nature of her expertise in specific functional areas, names of companies in which she hold directorships, committee memberships/ chairmanships, their shareholding etc., are provided in the Notes to the Notice of the ensuing Annual General Meeting. Your Directors recommend her re-appointment at the ensuing Annual General Meeting.

The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of independence as prescribed both under sub-section (6) of Section 149 of the Companies Act, 2013 and under Regulation 16 (b) (iv) of SEBI (LODR) Regulations, 2015.

The information on Policy for performance evaluation of Independent Directors, Board, Committees and other individual Directors; Separate meeting of Independent Directors; Familiarization programme for Independent Directors, etc. is provided under Corporate Governance Report annexed with this Report and the relevant policies are also available on the website of the Company www.essar.com .

BOARD MEETINGS

During the year ended on March 31, 2016, five (5) meetings of the Board were held on May 21, 2015, June 24, 2015, August 14, 2015, November 06, 2015 and February 11, 2016.

DIRECTORS' RESPONSIBILITY STATEMENT

Your Directors state that:

(a) in the preparation of the annual accounts for the year ended March 31, 2016, the applicable accounting standards had been followed and there are no material departures from the same;

(b) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2016 and of the loss of the Company for the year ended on that date;

(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis as explained in Note No. 35 of Standalone Financial Statements .

(e) the Directors, had laid down internal financial controls followed by the Company and that such internal financial controls are adequate and were operating effectively as endorsed by Statutory Auditor in their separate report annexed to the Annual Report

(f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

RISK MANAGEMENT

Your Company has a Risk Management Policy that outlines the framework and procedures to assess and mitigate the impact of risks, and to update the Board and the senior management on a periodical basis on the risk assessed, actions taken for mitigation and efficacy of mitigation measures. With efficient Risk Management Framework, your Company is able to manage:

(a) Economic Risks by entering into long term contracts with reputed global majors in each of its divisions thereby ensuring long term profitability of the Company and assured cash flows;

(b) Interest Rate Risk by undertaking suitable hedging strategies to overcome any adverse interest rate risks. It has formulated internal target rates at which any open interest rate risk can be hedged;

(c) Control over the operational matrix of various vessels to reduce cost and reduce downtime of vessels; and

(d) Control over various OPEX cost of the organization.

As per LODR, Regulation 2015, Compliance related with Risk Management Committee is required to be done by top 100 Companies as per list released by NSE, since our Company doesn't fall in that category hence the Compliance of Risk Management was not needed but your Company do believe in mitigation/minimisation of risk therefore the management had put its best effort to minimise/mitigate the risk.

INTERNAL CONTROL SYSTEMS AND ITS ADEQUACY

Your Company has a well-established framework of internal operational and financial controls, including suitable monitoring procedures systems which are adequate for the nature of its business and the size of its operations. The detailed report on Internal Finance Control and Risk Management Systems is given in Corporate Governance Report.

CORPORATE GOVERNANCE

The Company has complied with all mandatory provisions of SEBI (LODR) Regulations 2015, relating to Corporate Governance. A separate report on Corporate Governance as stipulated under the SEBI (LODR) Regulations, 2015 forms part of this Report. The requisite certificate from the Auditors of the Company regarding compliance with the conditions of corporate governance is attached to the report on Corporate Governance.

VIGIL MECHANISM

The Company has in compliance with Section 177 of the Companies Act, 2013 has established Vigil Mechanism by adopting the, 'Whistle Blower Policy', for Directors and Employees. The Whistle Blower Policy provides for adequate safeguards against victimization of persons who use such mechanism and have provision for direct access to the Chairperson of the Audit Committee in appropriate cases. A copy of the Whistle Blower Policy is available on the website of the Company www.essar.com .

CORPORATE SOCIAL RESPONSIBILITY

The Corporate Social Responsibility Committee comprises Captain B. S. Kumar - Chairman; Captain Anoop Kumar Sharma; and Ms. S. Gayathri.

Since the Company has incurred losses in preceding three financial years hence it is not required to spend on CSR Activities.

EMPLOYEE STOCK OPTION SCHEME

The Company has implemented the "Essar Shipping Employees Stock Option Scheme-2011" ("Scheme") in accordance with the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 ("the SEBI Guidelines"). The Nomination and Remuneration Committee of the Board of Directors of the Company administers and monitors the Scheme. The applicable disclosures as stipulated under the SEBI Guidelines as at March 31, 2016 are provided in the Annexure - B to this Report.

During the year Company has allotted equity shares to Essar Shipping-Employee Options Stock Scheme Trust which had remitted the Share Application Money considering the number of options vested to the eligible employees, the same was approved by Board of Directors and allotment was made and listing for the trading of the same was approved by NSE and BSE.

AUDITORS

Your Company's Statutory Auditor, M/s. CNK & Associates LLP, (Registration No. 101961W) will retire at the conclusion of the ensuing Annual General Meeting.

The Board of Directors of the Company recommend M/s CNK & Associates LLP, Chartered Accountants, Mumbai, (Registration No. 101961W) for appointment as Statutory Auditors of the Company by the Members at the ensuing Annual General Meeting. The Company has received letter from M/s CNK & Associates LLP, Chartered Accountants, Mumbai to the effect that if their appointment is made, would be within the prescribed limits laid down under Section 141(3)(g) of the Companies Act, 2013 and they are not disqualified for such appointments under the provisions of applicable laws.

AUDITORS' REPORT

With regard to the Auditors' observation, the Note no. 13 (a) (ii) of Standalone Financial Statement and Note no. 37 of the consolidated Financial Statements are self-explanatory.

Further with regard to the observations made in Annexure 1 to the Auditors' Report, the management explanation is as under:

a) TDS & Service Tax dues:

The Company is making all efforts to clear outstanding statutory dues at earliest.

b) Regarding the dues to the Bank/FI/Debenture-holders

The Company is continuing its negotiation with lenders to refinance the existing loans with balance useful life of its asset, in view of depressed market conditions in the shipping industry.

The delay in repayment of instalments and Interest has been unavoidable due to cash flow mismatch and efforts are being made to avoid the recurrence thereof.

c) With regard to the apparent excess Managerial Remuneration paid to the Managing Director:

The remuneration paid to the Managing Director includes the performance linked incentive amounting Rs. 30,99,004 pertaining to the financial year 2014-15, accordingly there has been no excess remuneration paid to the Managing Director.

However an application has been made to the Central Government as matter of abundant caution.

SECRETARIAL AUDIT

The Board has appointed M/s. Martinho Ferrao & Associates, Practising Company Secretaries, to conduct Secretarial Audit for the financial year 2015-16. The Secretarial Audit Report for the financial year ended March 31, 2016 is annexed herewith marked as Annexure - C to this Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

APPOINTMENT AND REMUNERATION POLICY FOR DIRECTORS AND SENIOR MANAGEMENT

The Board of Directors on recommendation of the Nomination & Remuneration Committee has adopted a policy for appointment of Directors, remuneration of Directors, Key Managerial Personnel and other employees. The brief details on the above are provided in Corporate Governance Report and the policy is available on the website of the Company www.essar.com ‘ The details of remuneration as required to be disclosed pursuant to the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are annexed as Annexure - D to this Report.

PARTICULARS OF EMPLOYEES

In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules together with disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in the Annexure - E to this Report.

CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES

All contracts / arrangements / transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an arm's length basis. During the year, the Company had entered into one contract / arrangement / transaction with Essar Steel India Limited, a Fellow Subsidiary which could be considered material in accordance with the policy of the Company on materiality of related party transactions.

The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Company's website www.essar.com . The information on each of the transactions with the related party as per the Companies Act, 2013 is provided in note 33 of notes forming part of the financial statement and hence not repeated. The disclosure required pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 and Rule 8(2) of the

Companies (Accounts) Rules, 2014 in Form AOC-2 is annexed herewith as Annexure - F to this Report.

EXTRACT OF ANNUAL RETURN

The extract of the Annual Return in Form MGT 9 is annexed herewith as Annexure - G to this Report.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Particulars of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the financial statements.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company's operations in future.

ARBITRATION AWARD

Subsequent to the closure of Financial Year the Company has won arbitration award in May 2016. The tribunal has passed award in favour of the Company as compensation (including intrest) to be paid by SAIL amounting to Rs. 323 Crores approx.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO

Conservation of energy and Technology absorption

Your company is committed for continual environmental improvement. The Company has taken several initiatives towards conservation of energy. The Company initiated the process of monitoring carbon emissions as per IMO GHG Guidelines and also explored opportunities to improve energy efficiency onboard the ships. Due to the nature of the business (transportation), fuel and lubricants are necessary to deliver the services.

Following are few steps taken towards conservation of energy and use of alternate source of energy:

Ship Energy Efficient Management Plan (SEEMP): In line with current guidelines that have been established by IMO, this plan has been implemented all across fleet vessels. The capturing and monitoring of the data on regular basis prompts to take appropriate corrective measures on a timely basis. Onboard performance monitoring systems will give a holistic approach to ship operations with the aim of reducing fuel consumption and emissions while achieving optimum vessel performance. The Company have already completed energy efficiency evaluation on our assets and are now in the process of implementing fuel efficiency measures. These include trim, speed reduction and weather routing. These fuel efficiency measures will not only reduce energy consumption but also benefit customers through lower fuel cost, where applicable.

Alternate source of energy: In order to reduce fuel consumption, the Company's vessels utilize shore power during repair lay-up period and thereby reduce carbon foot print. Periodical cleaning of ship's hull and propellers apart from routine dry-docking of floating assets is another step which has been taken towards conservation of energy with insignificant investment or expenses.

Technology Absorption

The Company has successfully implemented SAP in its financial and budget management systems. The Company has also now implemented various methods of automation so as to have greater visibility and control over its assets and further improve the turnaround time thereby increasing asset utilisation and profitability. Planned maintenance and purchase management system of all the vessels are now being integrated with SAP in order to have uniform platform. The Company has implemented a robust Document Management System thus improving the availability of critical information in e-mode thereby reducing the use of paper. Ship-staff payroll system has been developed and implemented successfully.

In-house developed software EIS system has now been upgraded to monitor all the above energy conservation measures and is now available online. Various energy and cargo related data are available in e-mode and helps in close monitoring and control of energy conservation related matters. Due to in-house developed software, your company has not only saved on investment towards purchase of third party software but also reduced dependency on third party service provide.

Foreign Exchange Earnings and Outgo

The details of Foreign Exchange Earnings and Outgo during the year are as follows:

Foreign Exchanged Earned (including loan receipts, sale of ships, freight, charter hire earnings, interest income, etc.) : Rs. 359.04 Crore

Foreign Exchanged Used (including cost of acquisition of ships, loan repayments, interest, Operating expenses, etc.) : Rs. 699.53 Crore

PUBLIC DEPOSITS

Your Company has not accepted any public deposits under section 73 of the Companies Act, 2013, during the Financial Year under report.

APPRECIATION AND ACKNOWLEDGEMENTS

Your Directors express their appreciation of commendable teamwork of all employees. Your Directors express their thanks to all the offices of the Ministry of Shipping, Directorate General of Shipping, Ministry of Petroleum and Natural Gas, Indian Navy, Indian Coast Guard, Mercantile Marine Department, State Government and Central Government, Classification societies, Oil Companies and Charterers for the valuable support, help and co­operation extended by them to the Company.

Your Directors also thank its Bankers and other business associates, including the Members of the Company for their continued co­operation and support extended towards the Company.

For and on behalf of the Board

Captain Anoop Kumar Managing Director(DIN : 03531392)

Sharma P.K. Srivastava Chairman  (DIN : 00843258)

Mumbai

May 25, 2016