Shreyas Shipping

The year 2008 has been one of the most testing years across the globe
 for almost all the sectors.  In particular, it proved to be one of
 great turmoil in the financial sector with the collapse of the sub
 prime mortgage market in the US. The global meltdown, which originated
 in the US and gradually spread to the rest of the world, engulfed most
 businesses and sectors. What started as just a ripple in the housing
 sector in the US rapidly turned into a tsunami of economic crisis for
 the world. In the beginning, the financial crisis that affected
 banking, investment and real estate in the US later turned towards
 manufacturing and other allied sectors jolting the world economy. The
 world output and trade have witnessed a significant fall in the final
 months of 2008.
 
 The shadows of the financial meltdown have threatened to loom large
 over the Indian economic horizon as well. The shipping sector was not
 far behind in being impacted by this crisis. The sky rocketing oil
 prices gave its first blow but in due course the situation normalized
 and the circumstances appeared to be balanced.  However later during
 the year, the freight rates drastically came down.  Resultantly the
 shipowners had to lay off their vessels.  Freight rates marred the ship
 movements, port investments etc. finding it difficult to even recover
 the operating costs for the ship owners. The Indian shipping players
 are as a matter of fact now waiting for the markets to recover
 positively.
 
 The journey for Shreyas has been interesting during the current year.
 Shreyas having realized the gravity of the downturn has taken active
 steps way before the meltdown actually hit the industry. This has
 proved to be of great value in retrospect. During the year, Shreyas has
 sold off four vessels i.e M. V. OEL Express, M. V. OEL India, M. V. OEL
 Strength, M. V. OEL Aishwarya for a total consideration of Rs. 21011.31
 lacs. The Company has, with the sale proceeds, repaid its secured loans
 to the tune of Rs. 15865.07 lacs. Today the Company enjoys a minimal
 debt to the tune of Rs.8058.80 lacs as against Rs. 20763. 39 lacs in
 the previous year.
 
 Even with the reduction in the fleet strength, your Company was able to
 maintain its total income at Rs. 17984.57 lacs in the current year as
 against Rs. 17611.31 lacs in the previous year. Profit after Tax was
 Rs. 1453.59 lacs vis-a-vis Rs.838.39 lacs in the previous year which is
 an increase of 73.38% over the previous year.
 
 We will continue with our goal of providing safe, reliable and cost
 effective transportation and offer customized transportation solutions
 to our clients. We will also continue with our quest to strike out new
 paths. We will not rest on our accomplishments but build on them.
 
 I take this opportunity to thank our shareholders and business partners
 for the trust they have placed in us and your confidence and
 unflinching belief in our ability to deliver value. We believe your
 faith is well-founded and that together we will impact the logistics
 industry. Your continued support would further strengthen our hands as
 we set out to scale new heights of performance.  I also thank my
 colleagues on the Board, whose support and leadership has been
 invaluable.
 
 I also take this opportunity to recognise the support of our customers,
 suppliers, all regulatory authorities, our bankers, auditors,
 consultants, other business associates and legal advisors/counsels. I
 would like to assure you that all our efforts will be directed towards
 strong growth in the future.
 
 We look forward for your continued patronage with Shreyas.
 
 Mumbai                                              S. Ramakrishnan
 17,th June, 2009                        Chairman & Managing Director