1. The Company has acquired a High Bollard Pull Anchor Handling Towing and Supply Vessel viz Subhadra and sold two small Offshore Supply Vessels, in the month of March 2009, and Product Tanker as well as one Gas Carrier during the previous quarters of the year.

Subsequent to the year end, Company has acquired two Offshore Supply Vessels (OSV) on Bare Boat Charter Cum Demise (BBCD) basis as well as acquired a High Bollard Pull Anchor Handling Towing and Supply Vessel viz Suchandra.

2. The Directors have recommended a final dividend of Rs 1.50 per equity share taking the total dividend on equity shares to Rs 5.00 per equity share (previous year Rs 5.00 per equity share). The total equity dividend for the year amounts to Rs 7,500.45 lakhs (previous year Rs 7,498.99 lakhs) and dividend distribution tax thereon for the year amounts to Rs 1,274.72 lakhs (previous year Rs 1,274.46 lakhs).

3. Recognizing substantial fall (28%) in the value of Indian Rupee against US Dollar during the financial year and considering the representation made by the various trade associations including Indian National Shipowners’ Association (INSA), Government of India, Ministry of Corporate Affairs vide Notification No.GSR 225(E) dated March 31, 2009 issued Companies (Accounting Standards) Amendment Rules 2009 with effect from Accounting Year commencing on or after December 07, 2006. In view of this, instead of early adoption of Accounting Standard 30, the company has decided to exercise the option available under para 46 of the said notification. Hence, loss on account of revaluation of foreign currency loans which was charged to Profit & Loss Account as also amount transferred to Hedging Reserve Account during the period from April 01, 2008 to December 31, 2008 has been reversed.

In terms of the notification referred above, exchange difference arising on reporting of long term foreign currency loans, so far as they relate to acquisition of depreciable capital assets, is required to be added to or deducted from the cost of the asset and depreciated over the balance life of the asset and in other cases it is required to be accumulated in a "Foreign Currency Monetary Items Translation Difference Account" and amortized over balance period of such long term liability but not beyond March 31, 2011.

Accordingly, differences arising due to change in exchange rate on foreign currency loans relating to acquisition of depreciable Capital Assets amounting to Rs. 51,477 lakhs are added to the cost of such Capital Assets and in respect of other long term loans an amount of Rs. 685.12 lakhs has been transferred to Foreign Currency Monetary Items Translation Difference Account.

Consequent to the change, the depreciation for the year is higher by Rs. 2,996 lakhs and other expenses by Rs 218 lakhs.

If the option provided under AS 11 revised issued by Ministry of Corporate Affairs vide Notification No.GSR 225(E) dated March 31, 2009, was not exercised the profit referred above would have been a loss of Rs. 35,541 lakhs and reserves would have been lower by Rs. 34,172 lakhs.

The exchange gain of Rs. 14,438 lakhs recognized in Profit & Loss Account during the previous financial year ended March 31, 2008 has been reversed from the opening balance of General Reserve (net of Depreciation and other expenses of Rs. 788 lakhs) and deducted from the cost of such assets.

4. Provision for exchange rate variation of Rs 5,000 lakhs made in the previous year is no longer required&#59; hence written back.

5. The Company has not entered into any derivative transactions by way of currency and/or interest rate swap.

6. Provision for the cost of Employee benefits as per AS-15 (Revised) has been made on actuarial valuation basis.

7. Provision for current tax is based on the Minimum Alternate Tax payable under the provisions of the Income-tax Act, 1961, mainly arising from tax payable on the profit on sale of ship and other assets and includes Rs 20 lakhs for previous years.

8. The disclosure regarding details of promoter and promoter group shareholding including the details of pledge of shares has been made effective from February 03, 2009. Accordingly disclosure for corresponding previous year is not applicable.

9. The Company is engaged primarily in shipping business and there are no separate reportable segments as per Accounting Standard 17.

10. Figures for the previous accounting periods have been regrouped wherever necessary.

11. The above results have been reviewed by the Audit Committee at its meeting held on May 20, 2009 and have been approved by the Board of Directors of the Company at its meeting held on May 21, 2009.

Arun Mehta
Chairman & Managing Director