For the year ended March 31, 2011.
 
 1.  Contingent Liabilities :
 
                                                     (RS. IN LAKHS)
 
 SR.  PARTICULARS                                CURRENT     PREVIOUS
 NO.                                                YEAR         YEAR
 
 (a) Guarantees given by banks counter 
 guaranteed by the Company.                           55       23627
 
 (b) Guarantees by bank given on behalf of 
 a subsidiary company.                               189         190
 
 (c) Guarantees given to banks/shipyard on 
 behalf of subsidiaries.                           69661       34898
 
 (d) Sales Tax demands under BST Act for the 
 years 1995-96,1996-97,1997-98,1998-99,
 2001-02,2009-10,2010-11 against which the 
 Company has preferred appeals.                      746         746
 
 (e) Lease Tax liability in respect of a matter 
 decided against the Company, against which the
 Company has filed a revision petition in the 
 Madras High Court.                                 1740        1740
 
 (f) Possible obligation in respect of matters 
 under arbitration/appeal.                             -          59
 
 (g) Demand from the Office of the Collector & 
 District Magistrate, Mumbai City and from 
 Brihanmumbai Mahanagarpalika towards transfer
 charges for transfer of premises not
 acknowledged by the Company.                        434        434
 
 2.  Share Capital :
 
 Under orders from the Special Court (Trial of Offences relating to
 Transactions in Securities) Act, 1992, - the allotment of 2,85,922
 (previous year 2,85,922) right equity shares of the Company have been
 kept in abeyance in accordance with section 206A of the Companies Act,
 1956, till such time as the title of the bonafide owner is certified by
 the concerned Stock Exchanges. An additional 40,608 [previous year
 40,608] shares have also been kept in abeyance for disputed cases in
 consultation with the Bombay Stock Exchange.
 
 3.  Secured Loans :
 
 (a) Term loans from banks are secured by mortgage of specific ships.
 
 (b) Term loans from banks includes a syndicated loan of USD 16 million
 from a consortium of banks against security by way of assignment of
 bank deposit of USD 2.5 million and a financial covenant inter-alia, to
 maintain unencumbered assets of value not less than 1.25 times the said
 borrowing.
 
 (c) 9.80% 2500 Secured Redeemable Non-Convertible Debentures of Rs.
 10,00,000 each, redeemable on July 03, 2019, are secured by exclusive
 charge on ships with 1.25 times cover on the book value of ships and
 additional security by way of mortgage on immovable property of the
 company.
 
 4.  Fixed Assets :
 
 (a) Estimated amount of contracts, net of advances paid thereon,
 remaining to be executed on capital account and not provided for - Rs.
 105521 lakhs (previous year Rs. 206426 lakhs).
 
 (b) The amount of exchange gains / (losses) on account of fluctuation
 of the rupee against foreign currencies and gains / (losses) on hedging
 contracts (including on cancellation of forward covers), relating to
 long term monetary items for acquisition of depreciable capital assets
 and gains / (losses) on forward contracts for hedging capital
 commitments for acquisition of depreciable assets, deducted from the
 carrying amount of fixed assets during the year is Rs. 305 lakhs.
 Corresponding gain relating to the previous year deducted from the
 carrying amount of fixed assets was Rs. 31022 lakhs.
 
 (c) The deed of assignment in respect of the Companys leasehold
 property at Worli is yet to be transferred in the name of the Company.
 
 (d) In accordance with the Accounting Standard (AS-28), during the year
 the Company has recognised an impairment loss of Rs. 8570 lakhs in
 respect of the three Very Large Crude Carriers under construction which
 are proposed to be sold. These assets have been impaired on account of
 the agreed sale price being lower than the contracted purchase price.
 
 5.  Debtors and Creditors :
 
 Debtors and Creditors are subject to confirmation, reconciliation and
 adjustments, if any.
 
 6.  Cash and Bank Balance :
 
 Balances with scheduled banks on deposit account include margin
 deposits of Rs. 1651 lakhs (previous year Rs. 1301 lakhs) placed with
 the bank, under a lien against the guarantees issued by the said bank.
 Balances with other banks include a deposit of Rs. 1246 lakhs (previous
 year Rs. 1122 lakhs) which is under lien as security against a
 syndicated loan.
 
 8.  Current Liabilities :
 
 According to the information available with the Company regarding the
 status of the suppliers as defined under the Micro, Small and Medium
 Enterprises Development Act, 2006, no amount is overdue as on March
 31, 2011, to Micro, Small and Medium Enterprises on account of
 principal or interest.
 
 9.  Deferred Ta x :
 
 Pursuant to the introduction of Section 115VA under the Income-tax Act,
 1961, the Company has opted for computation of its income from
 shipping activities under the Tonnage Tax Scheme. Thus, income from the
 business of operating ships is assessed on the basis of the deemed
 Tonnage Income of the Company and no deferred tax is applicable to such
 income as there are no timing differences. The timing difference in
 respect of the non-tonnage activities of the Company are not material,
 in view of which provision for deferred taxation is not considered
 necessary.
 
 10.  Provisions :
 
 The Company has recognised the following provisions in its accounts in
 respect of obligations arising from past events, the settlement of
 which is expected to result in an outflow embodying economic benefits.
 
 11. The Company has provided performance guarantees in favour of
 parties which have awarded a contract to the Companys wholly owned
 subsidiary which would require it to assume the benefits and costs of
 this contract in the event the subsidiary is not able to fulfill the
 same, in which event, the company does not expect any net liability or
 outflow of resources.
 
 (vii) Basis used to determine expected rate of return on assets :
 
 Expected rate of return on investments is determined based on the
 assessment made by the Company at the beginning of the year on the
 return expected on its existing portfolio since these are generally
 held to maturity, along with the estimated incremental investments to
 be made during the year.
 
 (viii) General description of significant defined plans :
 
 Gratuity Plan :
 
 Gratuity is payable to all eligible employees of the Company on
 superannuation, death, permanent disablement and resignation in terms
 of the provisions of the Payment of Gratuity Act or as per the
 Companys Scheme whichever is more beneficial. Benefit would be paid at
 the time of separation based on the last drawn basic salary.
 
 Pension Plan :
 
 Under the Companys Pension Scheme for the whole-time Directors as
 approved by the Shareholders, all the whole-time Directors are entitled
 to the benefits of the scheme only after attaining the age of 62 years,
 except for retirement due to physical disability, in which case, the
 benefits shall start on his retirement. The benefits are in the form of
 monthly pension @ 50% of his last drawn monthly salary subject to
 maximum of Rs. 75 lakhs p.a. during his lifetime. If he predeceases the
 spouse, she will be paid monthly pension @ 50% of his last drawn
 pension during her lifetime. Benefit also include reimbursement of
 medical expense for self and spouse, overseas medical treatment upto
 Rs. 50 lakhs per illness, office space including telephone in the
 Companys office premises and use of Companys car including
 reimbursement of drivers salary and other related expenses during his
 lifetime.
 
 Leave Encashment :
 
 Eligible employees can carry forward and encash leave upto
 superannuation, death, permanent disablement and resignation subject to
 maximum accumulation allowed at 15 days for employees on CTC basis and
 at 300 days for other employees. The leave over and above 15 days for
 CTC employees and over 300 days for others is encashed and paid to
 employees as per the balance as on June 30th every year. Benefit would
 be paid at the time of separation based on the last drawn basic salary.
 
 16.  Hedging Contracts :
 
 The Company uses foreign exchange forward contracts, currency &
 interest rate swaps and options to hedge its exposure to movements in
 foreign exchange rates. The use of these foreign exchange forward
 contracts, currency & interest rate swaps and options reduces the risk
 or cost to the Company and the Company does not use the foreign
 exchange forward contracts, currency & interest rate swaps and options
 for trading or speculation purposes.
 
 The Company also uses commodity futures contracts for hedging the
 exposure to bunker price risk.
 
 3. The above mentioned derivative contracts having been entered into to
 hedge foreign currency risk of firm commitments and highly probable
 forecast transactions and the interest rate risk, have been designated
 as hedge instruments that qualify as effective cash flow hedges. The
 mark-to-market loss / (gain) on the foreign exchange derivative
 contracts outstanding as on March 31, 2011 amounting to loss of Rs.
 17228 lakhs (previous year Rs. 17727 lakhs) has been recorded in the
 Hedging Reserve Account.
 
 17.  Segment Reporting :
 
 The Company is only engaged in shipping business and there are no
 separate reportable segments as per Accounting Standard AS -17 ‘Segment
 Reporting.
 
 18.  Related Party Disclosures :
 
 (I) List of Related Parties
 
 a) Parties where control exists : Subsidiary Companies :
 
 The Great Eastern Shipping Co. London Ltd.  The Greatship (Singapore)
 Pte. Ltd.  Great Eastern Chartering LLC (FZC) Greatship (India) Ltd.
 and its subsidiaries :
 
 - Greatship Global Holdings Ltd., Mauritius.
 
 - Greatship Global Energy Services Pte Ltd., Singapore.
 
 - Greatship Global Offshore Services Pte Ltd., Singapore.
 
 - Greatship DOF Subsea Projects Private Ltd., India.
 
 - Greatship Subsea Solutions Singapore Pte. Ltd., Singapore.
 
 - Greatship Subsea Solutions Australia Pty. Ltd., Australia.
 
 - Greatship (UK) Ltd., UK.
 
 - Greatship Global Offshore Management Services Pte. Ltd., Singapore.
 
 b) Other related parties with whom transactions have taken place during
 the year (i) Key Management Personnel :
 
 Mr. K. M. Sheth - Executive Chairman
 
 Mr. Bharat K. Sheth - Deputy Chairman and Managing Director
 
 Mr. Ravi K. Sheth - Executive Director
 
 20.  The Ministry of Corporate Affairs has issued on February 8, 2011 a
 notification on General Exepmtion under Section 211 of the Companies
 Act 1956. Accordingly shipping companies are exempted to give
 information pursuant to para 4D(a), (b), (c) and (e) of Part II of
 Schedule VI to the Companies Act, 1956.
 
 The Company has not remitted any amount in foreign currencies on
 account of dividend during the year.
 
 21.  Previous years figures have been regrouped/restated wherever
 necessary to conform to current years classification.