1. The Company has recognised an impairment of Rs 70 crores in respect of one dry bulk carrier in accordance with Accounting Standard (AS) 28 consequent to a sharp fall in the recoverable value of the said asset. In the opinion of the management, the book value of this asset, after correcting for the impairment recognised, is aligned closer to the current market price and also broadly reflects the earnings expectations from it.

2. Exceptional items include:

(a) Net Compensation (paid) / received on cancellation of vessel construction / ship sale contracts : Year ended March 31, 2009 - Rs (14.85) crores and

(b) Exchange gain / (loss) on revaluation of foreign currency loan liabilities in accordance with AS-11.

3. The Company has opted for accounting the exchange differences arising on reporting of long term foreign currency monetary items in line with the Companies (Accounting Standards) Amendment Rules 2009, on Accounting Standard AS 11, notified by Government of India on March 31, 2009. Accordingly, losses arising from the effect of changes in foreign exchange rates on foreign currency loans relating to acquisition of depreciable capital assets, amounting to Rs 540.23 crores for the year ended March 31, 2009, are added to the cost of such assets. Consequent to the change, the depreciation for the year is higher by Rs 22.53 crores and the profit for the year and reserves are higher by Rs 517.70 crores. The corresponding foreign exchange gains of Rs 122.60 crores (net of depreciation of Rs 10.05 crores) for the year ended March 31 2008, have been reversed from the General Reserve and deducted from the cost of such assets.

The Company has with effect from April 01, 2008, adopted the principles of hedge accounting enunciated in Accounting Standard (AS) 30 - Financial instruments: Recognition and Measurement in respect of derivative transactions entered into to hedge currency, interest rate and bunker price risk Consequently, the mark-to-market losses of Rs 365.14 crores on such designated hedging instruments that qualify as effective hedges have been recorded in the hedging reserve account until the maturity of the underlying hedged item, when the actual crystallised gains or losses will be recognized in the Profit and Loss Account or adjusted to the cost of the hedged asset. The reserves as at March 31, 2009 are lower to that extent.

4. (a) The Board of Directors has declared and paid two interim dividends aggregating Rs 5.00 per equity share. The outgo on this account was Rs 89.08 crores including Tax on Dividend.

(b) The Board of Directors has declared a 3rd interim dividend of Rs 3.00 per equity share. The outgo on this account is Rs 53.45 crores including Tax on Dividend. The Board of Directors has decided that there will be no further dividend for the Financial Year ended March 31, 2009.

5. The Company had on August 09, 2007 allotted 50,05,000 convertible warrants to certain Promoters and non-executive directors, of which the option has not been exercised for 49,95,000 warrants. Accordingly the said warrants stand cancelled and the amount of Rs 1598 lakhs received upfront from the warrant holders has been forfeited and credited to the Capital Reserve.

6. During the quarter, the Company undertook following transaction:

(i) sold and delivered -

- a Gas Carrier named Jag Vayu (Year Built: 1978) of DWT 28400 MT.
- a Handymax Drybulk Carrier named Jag Riddhi (Year Built: 1997) of DWT 47240 MT.

Subsequent to the end of the year, the Company undertook following transactions:

(i) took delivery of a newly built Long Range One (LRI) Product Tanker named Jag Amisha of DWT 74500 MT.

(ii) contracted to sell a Handymax Drybulk Carrier named Jag Reena (Year Built 2000) of DWT 45659 MT for delivery in first quarter of Financial Year 2009-10

(iii) delivered a Double Hull Medium Range Product Tanker named Jag Payal of DWI 37159 MT.

7. During the quarter, the Company has subscribed 6,60,00,000 7.50% Cumulative Convertible Redeemable Preference Shares of Rs 10/- each at a premium of Rs 20/- per share aggregating to Rs 198 crores in its wholly owned subsidiary Greatship (India) Ltd. The total investment in Greatship (India) Ltd. till date aggregates to Rs 1116 crores.

8. Previous period figures have been re-grouped wherever necessary.

9. The Board of Directors has approved the aforesaid results at its meeting held on May 08, 2009.

K M Sheth
Executive Chairman