The Directors are pleased to present the 63rd Annual Report on the
 business and operations of your Company and Audited Accounts for the
 financial year ended March 31, 2011.
 
 FINANCIAL PERFORMANCE
 
 The financial results of the Company for the financial year ended March
 31, 2011 are presented below:
 
                                                         Rs. in Lakhs
 
                                                  2010-11    2009-10
 
 Total Income                                      165928     224539
 
 Total Expenditure                                 136407     181343
 
 Profit before tax                                  29521      43196
 
 Less : Provision for Income Tax                     2800       3915
 
 Profit for the year after tax                      26721      39281
 
 Add/(Less): Prior period adjustments                 (75)       294
 
 Net Profit                                         26646      39575
 
 Less: Transfer to Tonnage Tax Reserve 
 Account under section
 115VT of the Income-tax Act, 1961                   4000       4000
 
                                                    22646      35575
 
 Add : Surplus brought forward from previous year  288673     271177
 
 Amount available for appropriation                311319     306752
 
 Appropriations:
 
 -Transfer to General Reserve                        2700       4000
 
 -Interim Dividend on Equity Shares                  5330          -
 
 -Proposed Dividend on Equity Shares                 6853      12183
 
 -Tax on Dividends                                   1660       1896
 
 Balance Carried Forward                           294776     288673
 
 The total income for the year was recorded at Rs. 165928 lakhs as
 against Rs. 224539 lakhs in the previous year and a Net Profit after
 prior period adjustments of Rs. 26646 lakhs as against Rs. 39575 lakhs
 in the previous year.
 
 DIVIDEND ON EQUITY SHARES
 
 During the year, your Directors declared and paid interim dividend of
 Rs. 3.50/- per share resulting in an outflow of Rs.6215 lakhs
 (inclusive of tax on dividend).
 
 Your Directors recommend a dividend of Rs. 4.50/- per share. The
 dividend will be paid after your approval at the ensuing Annual General
 Meeting. The aggregate outflow on account of the equity dividend for
 the year would be Rs. 13843 lakhs including tax on dividend. This
 represents a payout ratio of 51.95% (previous year 35.57%).
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Articles of Association of the Company, Ms. Asha V.  Sheth and Mr. Keki
 Mistry are liable to retire by rotation and being eligible, offer
 themselves for re-appointment. Necessary resolutions for their
 re-appointment have been included in the Notice convening the ensuing
 Annual General Meeting.
 
 CORPORATE GOVERNANCE
 
 Your Company was Corporate Governance compliant much before SEBI
 stipulated deadline in the year 2005. Your Company has complied with
 the mandatory provisions of Clause 49 of the Listing Agreement,
 relating to Corporate Governance. A separate section on Corporate
 Governance forms part of the Directors Report and the certificate from
 the Companys auditors confirming the compliance of conditions on
 Corporate Governance is included in the Annual Report.
 
 Your Company has also complied with the ‘Corporate Governance
 -Voluntary Guidelines 2009 issued by the Ministry of Corporate
 Affairs, to the extent disclosed in the Annual Report.
 
 RISK MANAGEMENT PROCESS
 
 In accordance with requirements of Clause 49 of the Listing Agreement,
 your Company has established a Risk Management mechanism for its
 business risks. The programme is built upon the foundation of the
 existing risk management process and
 
 practices of the Company and has evolved a structured approach for risk
 management to manage significant risks faced by your Company.
 
 The Risk Management framework and reporting regime enables the Company
 to assess and demonstrate whether its significant risks are properly
 identified and controlled, and to potentially eliminate unnecessary
 control related overheads.
 
 The Risk Management framework involves risk identification, assessment,
 treatment/action plan, review and reporting as a continuous process.
 
 Your Directors believe that your Company has a sound risk assessment
 and minimisation mechanism in place.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to the requirement of Section 217 (2AA) of the Companies Act,
 1956 the Board of Directors hereby state that:
 
 i. in preparation of the annual accounts, the applicable accounting
 standards had been followed (alongwith proper explanation relating to
 material departures) and that there are no material departures;
 
 ii. they have, selected the 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 at the end of the financial year and of the profit of the
 Company for that period;
 
 iii. the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 iv.  they have prepared the annual accounts on a going concern basis.
 
 COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF
 DIRECTORS) RULES, 1988
 
 Pursuant to Notification No. GSR 1029 dated 31.12.1988 your Company is
 not required to furnish prescribed information regarding conservation
 of energy and technology absorption, as Shipping Industry is not
 covered by the schedule to the said rules. The details of Foreign
 Exchange Earnings and Outgo are:
 
                                                      Rs. in lakhs
 
 (a) Foreign Exchange earned on account of freight, 
 charter hire earnings, etc.                                114186
 
 (b) Foreign Exchange used including operating 
 expenses, capital repayment, down payments for             149786 
 acquisition of ships (net of loan),
 interest payment, etc.
 
 PARTICULARS OF EMPLOYEES
 
 Statement pursuant to Section 217(2A) of the Companies Act, 1956 (Act),
 read with the Companies (Particulars of Employees) Rules, 1975, is
 annexed to this Report. As contemplated by Section 219 of the Act,
 members are provided with abridged accounts. Members desirous of
 receiving the Statement pursuant of Section 217(2A) will be provided
 the same on receipt of written request from them.
 
 AUDITORS
 
 Messrs Kalyaniwalla & Mistry, the Auditors of your Company, who hold
 office until the conclusion of the forthcoming Annual General Meeting
 being eligible, offer themselves for re-appointment.
 
 APPRECIATION
 
 Your Directors express their sincere thanks to all customers,
 charterers, vendors, investors, shareholders, shipping agents, bankers,
 insurance companies, protection and indemnity clubs, consultants and
 advisors for their continued support throughout the year. Your
 Directors also sincerely acknowledge the significant contributions made
 by all the employees for their dedicated services to the Company.
 
 Your Directors are grateful to the Government of India, Ministry of
 Shipping, Transchart, Ministry of Petroleum & Natural Gas, Ministry of
 Finance, Directorate General of Shipping, Port Authorities, Mercantile
 Marine Department and various other authorities for their co-operation.
 Your Directors look forward to their continued support.
 
                                             For and on behalf of the 
 
                                                   Board of Directors
 
                                                           K.M. Sheth
 
                                                   Executive Chairman
 
 Mumbai, May 06, 2011