Your Directors have pleasure in presenting the 75th Annual Report on the working of your Company for the Financial Year ended 31st March, 2025.

FINANCIAL PERFORMANCE

The comparative position of the working results for the year under report vis - a vis earlier year is as under:

The above figures have been extracted from the standalone financial statements as per Indian Accounting Standards (Ind-AS). Appropriations:

The working results of your company for the year 2024-25 shows a net profit of Rs. 814.10 crore. A sum of Rs 137.30 crore has been transferred to Tonnage Tax Reserve. Retained Earnings has been further adjusted for dividend payment of Rs. 23.29 Crores during the financial year 2024-25.

Dividend:

The Board of Directors at their meeting held on 16.05.2025 recommended a dividend of Rs. 6.59 /- per equity share of face value of Rs.10 each i.e. 65.90% per share on the paid up Capital of the Company. The Dividend will become payable once approved by the shareholders at the ensuing AGM. The said dividend will be paid within 30 days of its declaration at the AGM.

The dividend, subject to approval of the Members at the Annual General Meeting scheduled to be held on 19.09.2025 will be payable to those Shareholders, whose names appear in the Register of Members/ list of beneficial owners as on the Record Date. The payment of dividend will be subject to deduction of tax at source. The dividend pay-out is in accordance with the company’s dividend distribution policy which is available on the Company’s website http://shipindia.com/upload/policies/SCI_Dividend_Distribution_ Policy1.pdf and also as per the prevalent provisions of laws, rules and regulations.

Share Capital:

The Company has not issued any Equity Shares with differential voting rights. Hence, no information as required under Section 43(a) (ii) of the Companies Act, 2013 read with Rule 4(4) of the Companies (Share Capital and Debentures) Rules, 2014 is furnished. The Company has only one class of Equity Shares having face value of Rs. 10/- each.

Brief Analysis of Financial Performance:

SCI has reported a net profit after tax of Rs.814.10 crores for the financial year 2024-25. Liner segment reported profit of Rs. 154.20 crores in current financial year as compared to loss of Rs. 87.66 crores in previous financial year due to strategic decisions. Tanker and Bulk segment revenue and profits are in line with market scenarios. Tanker segment posted profit of Rs. 664.51 crores while Bulk segment posted loss of Rs. 46.10 Crores during the financial year 2024-25. T&OS segment has reported profit of Rs. 24.69 Crores during current year.

A SUBSIDIARY COMPANIES

Inland and Coastal Shipping Limited

Inland and Coastal Shipping Limited (ICSL), a wholly owned subsidiary of your Company, was incorporated on 29.09.2016. As per the Ministry of Ports, Shipping and Waterways (MoPSW), Inland Waterways Transport (IWT) Division’s letter dated 27.10.2020, approval was granted to the Inland Waterways Authority of India (IWAI) for handing over three vessels to ICSL:

(i)    M.V. Rabindra Nath Tagore

(ii)    M.V. Lal Bahadur Shastri

(iii)    M.V. Homi Bhabha

Subsequently, ICSL signed a Memorandum of Understanding (MoU) with IWAI on 22.01.2021 for operation and management of above mentioned cargo vessels of IWAI. M.V. Rabindra Nath Tagore, & M.V. Lal Bahadur Shastri were taken over by ICSL on

22.01.2021    & 26.02.2021 respectively & M.V. Homi Bhabha was taken over by ICSL on 05.12.2024.

Further, to support RO-RO (Roll-on/Roll-off) transportation and reduce road congestion, ICSL and IWAI signed an MoU on

11.03.2022    for transfer of two RO-RO vessels owned by IWAI. As part of this initiative, ICSL took over M.V. Gopinath Bordoloi on 08.08.2023. The second vessel, M.V. Sankar Dev, is expected to be taken over in due course.

ICSL has been designated as the implementing agency for establishing scheduled cargo services on National Waterways 1 and 2 i.e., Haldia/Kolkata to Varanasi (NW-1) and Kolkata to Dhubri/Pandu (NW-2) under Jal Vahak Scheme, a promotional initiative announced by MoPSW in December 2024, for enhancing cargo movement through Inland Waterways Transport (IWT).

B. SCI Bharat IFSC Limited

SCI BHARAT IFSC LTD, wholly-owned subsidiary of Shipping Corporation of India Limited, has been incorporated on August 12, 2024 with paid-up share capital of INR 30 crores through an Overseas Direct Investment (ODI) on 17.09.2024, after obtaining the necessary approval from the Reserve Bank of India (RBI).

SCI BHARAT IFSC LTD has obtained the certificate of registration on 23.09.2024 to commence business as Finance Company at GIFT City, Gujarat, from International Financial Services Centres Authority (IFSCA) and commenced its operations by in-chartering an oil tanker ship to transport crude oil from Persian Gulf to India. During 2024-25, the first year of operation of your company, a new office was set up in the GIFT City and relationships are being developed with local authorities.

At present SCI Bharat IFSC Ltd is in budding stage and various initiatives are being taken at company level as well as in Ministry to develop structures and systems which can enable efficient and smooth functioning of the organization.

SPECIAL PURPOSE VEHICLE:

Sethusamudram CorporationLtd.

The Government of India established Sethusamudram Corporation Limited (SCL) to fund and manage the Sethusamudram Ship Channel Project, aiming to create a navigable channel from the Gulf of Mannar to the Bay of Bengal through Palk Bay. As mandated by the government, various PSUs, including SCI, were to contribute equity to this project. By FY 2016-17, SCI had invested '50 crore. Work was suspended on September 17, 2007, due to an interim stay order from Hon’ble Supreme Court, regarding dredging operations in the Adam’s Bridge area. All dredgers were subsequently withdrawn by July 27, 2009, as a final decision on an alternative alignment remained pending. A Supreme Court hearing scheduled for April 6, 2018, was indefinitely withheld.

At its meeting held on August 9, 2024, the Board of Directors of SCI approved the nomination of Rear Admiral Jaswinder Singh, Director (L&PS) as SCI’s representative on the Board of Sethusamudram Corporation Ltd (SCL), subject to the approval of the Ministry of Ports, Shipping and Waterways (MoPSW). Following MoPSW’s advice that the earlier established procedure be followed, as per which, SCI may directly appoint a Nominee Director to the SCL Board. Accordingly, at its meeting held on November 8, 2024, the SCI Board granted approval for the appointment of the Director (L&PS) as a Nominee Director on the SCL Board to represent SCI.

The Board of Sethusamudram Corporation Ltd. thereafter appointed Director (L&PS) as an Additional Director of SCL on February 4, 2025.

B. JOINT VENTURES

(i)    India LNG Transport Co. (No.1), (No.2) and (No.3) Ltd

SCI has entered into three JVCs, registered in Malta, with three Japanese Companies viz. Mitsui O.S.K.Lines (MOL), Nippon Yusen Kabushiki Kaisha (NYK) and Kawasaki Kisen Kaisha Ltd (K Line) along with Qatar Shipping Company (Q Ship) in case of ILT No. 1 & 2 and Qatar Gas Transport Company (QGTC) in case of ILT No. 3, each owning and operating an LNG tanker deployed in the import of a total of 7.5 million metric ton per annum of LNG for the Dahej Terminal of M/s Petronet LNG Ltd (PLL). SCI is the first and only Indian company to enter into the high-technology oriented & sunrise sector of LNG. SCI is the manager for these three companies, managing the techno-commercial operations of 3 LNG tankers.

(ii)    India LNG Transport Co. No.4 Pvt Ltd

SCI has entered into 4th JV registered in Singapore, with the same three Japanese companies viz. Mitsui O.S.K.Lines (MOL), Nippon Yusen Kabushiki Kaisha (NYK) and Kawasaki Kisen Kaisha Ltd (K Line) and Petronet LNG Ltd to own and operate one 173,000 CBM LNG Tanker for transporting LNG primarily from Gorgon, Australia to India and Far East region for charterers Exxon Mobil LNG Services B.V. SCI is the manager for this company and is managing the techno-commercial operations of the tanker.

Fleet position during the year:

During the year under report, there were NIL additions to the SCI fleet. The overall fleet position of SCI stood at 57 vessels of 5.245 million DWT at the end of the year.

Fleet profile during the year:

Particulars of Loans Guarantees and Investments.

Details of Loans, Guarantees and Investments are given in the notes to financial statements. Further, SCI is as an Infrastructure Company under Schedule VI referred to in Section 186 of the Companies Act, 2013, hence the provisions of Section 186 are not applicable to it.

The details of transaction with related party are available in Note 29 under ‘Notes to Financial statements.

Annual Return

Pursuant to Section 92(3) of the Companies Act, 2013 read with Section 134(3)(a) of the Companies Act, 2013, the Annual Return in Form MGT 7 is available on the Company’s website and can be accessed at www.shipindia.com/investors/agm new/13 Particulars of contracts/arrangements with related parties

Particulars of contracts/arrangements with related parties referred to in Section 188(1) of the Companies Act, 2013, in the prescribed form AOC-2 is appended to the Director’s Report as Annexure -IV. The details are also available in Note 29 under ‘Notes to Financial statements’

For the purpose of above disclosures directors’ interest shall have the same meaning as given in Section 184 of Companies Act, 2013. Particulars of Employees

Your Company, being a Government Company, is exempted to furnish information under Section 197 of Companies Act, 2013 vide Ministry of Corporate Affairs (MCA) Notification dated 05.06.2015.

Employees Stock Option Scheme

The company does not have any Employee Stock Option Scheme.

Company’s Policy on Directors appointment and remuneration

The terms of Directors appointment and remuneration are fixed by the Government of India.

Receipt of Remuneration by Managing Director from Subsidiary Companies.

Capt. B.K. Tyagi, CMD has not received any remuneration from the Subsidiary Companies of SCI.

Risk Management.

SCI considers Risk Management to be a core component of the Management of the Company and its ability to identify and address risks is central to achieving Corporate objectives. Accordingly, SCI has developed a detailed Risk Management Policy in line with the requirements of SEBI (LODR) Regulations, 2015, which includes framework for identification of risks, measures for risk mitigation and Business Continuity Plan. The Policy has been approved by the Risk Management Committee and the Board.

The company has identified entity level Risks which includes:

i)    Strategic Risk

ii)    Operational Risk

iii)    Financial Risk

iv)    Compliance Risk

Some of the risks identified by SCI include market volatility, increasing bunkering cost, cyber security risk, geo-political risks, decarbonisation challenges, Piracy, Foreign exchange fluctuation, regulatory compliances among others. All efforts are made for mitigating and controlling the risks through well-defined mitigation measures and coordination with all stakeholders.

SCI has formulated a three line of Risk Reporting viz. Corporate Risk Committee, Risk Management Committee and Audit Committee.

A corporate level Risk Register is maintained and reviewed quarterly by the Corporate Risk Committee. At each meeting of the RMC, the Corporate Risk Committee reports all the risks including the High risks and their mitigation plans. Further, in the area of ’Risk Management’, the Audit Committee and the Board continued to function in accordance with the applicable laws, rules and regulations. Conservation of Energy, Technology Absorption

The information pertaining to conservation of energy, technology absorption is forming a part of the Management Discussion and Analysis Report.

Foreign exchange earnings and outgo

Public Deposit

During the financial year 2024-25, SCI has not accepted any deposit within the meaning of Section 73 and 76 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014 and as such no amount of principal or interest was outstanding as on the date of the Balance Sheet.

Proposed Strategic Disinvestment and Demerger of SCI

The proposed strategic disinvestment of SCI is being handled by Department of Investment and Public Asset Management (DIPAM) with the engagement of Transaction Advisor. In this regard, Preliminary Information Memorandum (PIM) for inviting expression of interest was released on 22.12.2020. The Virtual Data Room is open and is being managed by the Transaction Advisor for the process of due diligence by the Qualified Interested Parties.

Updates on transfer of non-core assets from Shipping Corporation of India Limited to Shipping Corporation of India Land and Assets Limited

In accordance with the MCA Order dated 22.02.2023, during the Financial Year 2023-2024, titles of all Fixed Deposits eligible to be transferred to Shipping Corporation of India Land and Assets Limited (SCILAL) have been transferred in to their name.

Consequent to the approved Demerger Scheme, all non-core assets (i.e., real estate properties) of The Shipping Corporation of India Ltd. (SCI), as listed in the scheme, have been transferred de facto to Shipping Corporation of India Land and Assets Limited (SCILAL). To effectuate the de jure transfer, the execution and registration of conveyance deeds with the respective Land & Revenue Departments of

State Governments is required. The Company is actively pursuing the necessary legal and administrative steps in this regard. Brief details

of transfer of non-core assets are as under:

a)    Subsequent to the issuance of a Stamp Duty Exemption Order by the Government of West Bengal, registration of all freehold properties located in Kolkata has been completed on 22.03.2024. Transfer Deeds for 15 flats and Shipping House, Kolkata have been registered and the original registered documents have been received by the Company. Mutation (name change) entries with the Kolkata Municipal Corporation will also be undertaken in due course.

b)    To facilitate transfer of properties in Maharashtra from SCI to SCILAL, Office of the Collector of Stamps, Enforcement - 1 in Case No. ADJ/249/2024 dated 16.09.2024, has issued a certificate, which was received by the company on 16.07.2025, wherein it has been certified that under Section 32(1)(a)(b) of the Maharashtra Stamp Act, the Demerger Scheme is exempted from payments of Stamp Duty vide Government of Maharashtra Notification No. Mudrank-2023/698/C.R. 436/M-1 (Dhoran) dated 12.10.2023. Adjudication process for residential freehold properties aimed at enabling the execution of Transfer Deeds at the respective Sub-Registrar offices is currently in process. Additionally, follow-ups are being actively pursued with the concerned authorities for issuance of No Objection Certificates (NOCs) for Lease hold and Grant properties from Maharashtra State Govt., by SCI to facilitate the transfer of Shipping House (Lease hold property) and Maritime Training Institute (Land given on Grant) to the Resultant Company i.e., SCILAL.

c)    The Company is taking necessary and appropriate actions for the legal transfer of Irano Hind Shipping Company,P.J.S(IHSC) from SCI to SCILAL.

MANAGEMENT DISCUSSION AND ANALYSIS

The following remaining information w.r.t. to addition of new sub clause (i) under clause 1 in Part B (‘Management Discussion and

Analysis) of schedule V of SEBI (LODR) Regulations, 2015.

The Company has identified the following ratios as key financial ratios :_ ^1 2

i]    WORLD SCENARIO

The world GDP grew by an average of 2.8% in 2023. In the near term, global growth is projected to fall from an estimated 3.3% in 2024 to 2.8% in 2025, before recovering to 3% in 2026. (Source: IMF World Economic Outlook publication, April 2025)

In emerging market and developing economies, growth is expected to slow down from 4.3% in 2024 to 3.7% in 2025 and 3.9% in 2026, with significant downgrades for countries affected most by recent trade measures, such as China. Global headline inflation is expected to decline at a pace that is slightly slower than what was expected in January, reaching 4.3% in 2025 and 3.6% in 2026, with notable upward revisions for advanced economies and slight downward revisions for emerging market and developing economies in

2025.

Global Trade

According to IMF’s World Economic Update outlook update in, Global trade growth is expected to slow down in 2025 to 1.7 percentage point, a downward revision of 1.5 percentage point since January. This revised forecast reflects increased tariff restrictions affecting trade flows and, to a lesser extent, the waning effects of cyclical factors that have underpinned the recent rise in goods trade.

Seaborne Trade, Fleet & Market

In 2024, global seaborne trade reached an estimated 12.6 billion tonnes, marking a 2.4% year-on-year increase over 2023.

In terms of fleet, the world fleet grew by only 3.4% to 2.4 bn dwt (1.7bn GT), but with wide variations (tanker fleet +0.8%, container fleet +10.1%).

With respect to market for dry bulk carriers in 2024, demand surged by an estimated 165 MMT, driven largely by Chinese stock piling particularly coal and iron ore.

During the first half of 2024, Dry bulk earnings and charter rates were strong, especially for Capesize vessels, supported by disruptions (Red Sea re-routing, Panama Canal drought).

The global crude oil trade, after a decline in 2024, is expected increase in 2025 supported by growing Asian imports. Global crude seaborne trade in 2025 is expected to grow around 0.8 - 1%. Likewise, the crude oil tanker fleet is likely to expand at a modest pace in 2025 and is forecast to grow by 0.9% in 2025 amid increased deliveries, mostly led by Suezmax vessels, and improved yet lower demolitions, leading to net growth.

The outlook for crude tanker owners in 2025 is expected to be mixed, with VLCCs likely to outshine their smaller counterparts. While an increase in Asia-bound trade will benefit VLCCs, a likely weakness in refinery runs in the West will hurt the demand for mid-size tankers.

For product tankers, seaborne trade is expected to grow by 0.4% in 2025. The trading fleet on the other hand is expected to grow at a healthy 3.7% this year. Overall, product tanker market is facing mounting pressure, with earnings set to decline, especially in 2025 and

2026.

ii]    INDIAN SCENARIO

India, the world’s fourth-largest economy, has emerged as the fastest-growing major economy and is on track to become the world’s third-largest economy with a projected GDP of $7.3 trillion by 2030. India is projected to be world’s fastest growing major economy (6.3% to 6.8% in 2025-26).

This sustained economic expansion is set to bolster India’s seaborne dry bulk import demand, driven by infrastructure development, manufacturing activity, and energy needs.Thermal coal imports are likely to remain firm or even increase moderately, as domestic coal output struggles to keep pace with soaring power demand, thus supporting demand for Panamax and Supramax vessels. Infrastructure led demand for steel and cement, coupled with the government’s emphasis on largescale projects such as the Gati Shakti plan, will also drive imports of steelmaking raw materials, benefiting the Capesize segment.

Additionally, steady growth in agriculture related imports, including fertilizers such as urea and DAP, will support Handysize and Supramax traffic. However, the upside potential may be capped by domestic production expansion in coal and iron ore, and the government’s long term push toward renewable energy.

Overall, India’s strong economic growth trajectory will remain a positive factor for regional dry bulk demand in 2025, ensuring stable import volumes across multiple commodity groups, even as global dry bulk trade growth moderates.

On the tanker front, India’s steady economic trajectory for 2025 are expected to have a positive impact on the country’s crude and product tanker demand. As the world’s third-largest crude importer, India’s strong growth ensures continued high refinery runs to meet rising domestic fuel consumption particularly for diesel, gasoline, and petrochemicals which in turn supports inbound crude shipments.

On the clean product tanker front, India’s role as an emerging exporter of refined petroleum products is expanding due to its modern refining capacity and competitive pricing. Rising exports of diesel, jet fuel, and naphtha especially to Europe, Africa, and Southeast Asia are expected to support MR and LR tanker demand.

Overall, India’s economic momentum will continue to provide firm underlying support to both crude and product tanker markets in 2025.

iii]    STRENGTHS

SCI has decades of experience in the industry and operates a diversified fleet including crude oil tankers, product tankers, LPG carriers, bulk carriers, container ships, and offshore supply vessels. This allows your company to better hedge the volatility in the shipping market and provides with a unique ability to exploit demand growth in any given.

The company’s fleet is deployed in India’s EXIM and Coastal trade as well as international cross trade. Moreover, SCI is the only Indian shipping company providing both coastal as well as international container liner service and it also enjoys a unique distinction of being the only Indian shipping company operating LNG carriers, which are owned by its joint venture companies. The depth and vastness in expertise of your company makes it a front runner in the industry.

Your company also has longstanding relationships with major Indian oil refineries and other major players. The strong clientele base offer cargo security & employment assurance for sizeable part of the fleet.

iv]    OUTLOOK

Projections for 2025 indicate a deceleration in the dry bulk sector’s demand growth to 2.4%, influenced by escalating geopolitical tensions and the looming threat of a global recession after the sector experienced robust growth of 3.6% in 2024. While global dry bulk trade is anticipated to expand 2.1%, the demand for key commodities such as grains and steel is expected to contract due to the ongoing trade disputes. Conversely, the demand for commodities like coal and bauxite is forecast to remain strong, partially offsetting the downturn in other sectors.

However India’s growth will be a bright spot and will see healthy demand for Iron Ore, Coal as well as fertilizer.

v]    OPPORTUNITIES

Growth in Iron Ore Trade, strong Thermal coal demand in Asia and increase in bauxite trade to China are likely key opportunities in Dry Bulk trade.

Iron ore remains the biggest opportunity driver as Australia and Brazil expand exports. With respect to Thermal coal, India’s government policy to operate coal-based power plants at full capacity ensures continued coal import demand. India also presents an opportunity as a significant force in global coking coal demand. The nation’s infrastructure expansion and plans to boost steel production capacity to 300 million tonnes by 2031 will sustain high import levels. Additionally, medium-sized steel plants are expanding output, further elevating coking coal requirements.

Minor bulk and bauxite trade will also present growth opportunities. Bauxite shipments from Guinea to China are increasing and expected to engage more Capesize tonnage, boosting tonne-miles.

In the oil and gas sector, India’s growing crude oil demand owing to expansion in domestic refining capacity and country’s robust gas demand present good opportunity for tonnage deployment in this sector.

vi]    RISKS AND CONCERNS

Most of the risk and concerns are likely to be a direct or indirect result of the changes in current trade policy and geo political situations.

The recently proposed US Trade Representative (USTR) fee could bring in negative sentiment and curb cargo shipments in 2H25 and the political instability in the Red Sea continues to pose risks.

With respect to the trade, fears of a possible recession in the global economy could slow down the manufacturing and construction sectors across the globe.

Another possible downside is China growing emphasis on self sufficiency with respect to grain. While China remained among the largest importers of grains historically, its share of global grain imports declined massively over 2024, reflecting the country’s aim to meet its grain needs primarily through domestic production.

B. BULK CARRIERS & TANKERS

1) Crude Oil & Product Tankers

Crude Oil market in the year 2024 experienced notable fluctuations influenced by a combination of geopolitical tensions, shifting supply-demand dynamics and macroeconomic factors. There was marginal increase in global oil demand for the year 2024 with a

growth of about 0.9% compared to 2023. It is expected that further expansion in the EV fleet, increase in fuel efficiency of vehicles and a shift towards cleaner fuels might dampen the global crude oil demand growth after 2025. On the contrary, Asian market demand is expected to revive in the year 2025. The increase in crude oil flows through the TMX pipeline in Canada will also add to the seaborne trade. The sanctions on Russian tankers has influenced freight rates. These sanctions will also impact crude oil supply from Russia in the short term forcing India and China to increase imports from other sources, which will benefit VLCCs. Global refinery run has shown modest growth of 470 kbpd in 2024 and it is further expected that refinery throughput will improve in year 2025. The increased throughput will be supported by improved demand and stocking activity in the crude as well as product segment. With new refineries coming up in the Middle East, Africa (Nigeria) and North America (Mexico) will boost the trade.

In case of Crude tanker fleet, it is expected that the fleet to expand 0.9% in 2025 amid increased deliveries and fewer demolitions. A robust expansion of the Suezmax fleet will lead to this fleet growth. Demolitions are still muted as owners are unwilling to scrap their vessels due to strong earnings amid high freight rates resulting from longer voyages and the shift in trade patterns. However, transit risks through the Suez Canal seem to be easing as the Houthis have pledged to limit their attacks in the Red Sea. If transits via the Suez improve, voyages could shorten and earnings could decrease.

The Israel-Iran conflict that began in mid June 2025 led to a highly volatile security situation in the Middle East Gulf and the Strait of Hormuz, through which around 20% of global oil passes. The risk was further heightened in the wake of US military strike on Iran’s nuclear facilities and tanker rates saw a sudden spike. With the subsequent declaration of ceasefire the freight rates began to decline, but were still higher compared to the pre-conflict levels. The situation in the Middle East, which is a major loading area for oil and gas cargoes, remains fluid. Going forward, any changes in US policy on Iranian sanctions and the re-opening of the Red Sea shall have fundamental shift in demand supply situation across entire spectrum of shipping markets

In the year 2024 a total of 15 vessels (2.21 m dwt) comprising seven Aframaxes, seven Suezmaxes and one VLCC joined the crude tanker fleet; as against this, 37 crude carriers are scheduled to be delivered in 2025. For product tankers, as per reports around 20 Large Range and 3 small tankers joined the fleet in 2024. It is to be noted that along with conventional tankers, new orders of alternative-fuelled vessels have also increased in 2024.

VLCC earnings were seen to be at healthy levels in 2024, which are expected to rise in 2025, but decrease by the 2026. Sanctions on Russia linked tankers are forcing Asian buyers of Russian crude to look for alternative supplies, boosting tonnage demand in the Arabian Gulf. However, if disruption to the Russian crude exports extends for long, it will keep Middle Eastern crude exports to Asia strong benefitting VLCCs at the expense of mid-size tankers. For the Suezmax segment, fleet expansion amid weakening demand is causing softness in the market. Usually decline in Russian exports would mean lower demand for mid-size tankers because of the dominance of these tankers in Russian trade. View this, average spot earnings of the Aframax segment that showed good for the year 2024, is expected to exhibit downward trend in 2025 and 2026. There could be support for the Aframax tonnage demand due to increase in Canadian exports to Asia through the TMX pipeline.

Spot earnings of LR2 and LR1 product tankers, which were at healthy levels in 2024, declined subsequently as many large crude tankers cleaned up and switched to refined products trade inflating tonnage supply in the LR market. The average spot rate yield (TCE) of TC12, WCI - Japan route for the year 2024 was US$ 17,500 and for the MEG- East Africa TC17 route, was around US$ 27,700. The product tanker market has shown less movement in year 2024 due to significant changes in the supply-demand balance. Inspite of tight supply of the existing product carriers on account of a shift in trade patterns, there was softening of rates. One of major reason was the surge in new building vessel deliveries in the year 2025. Going forward, any possible improvements in the Suez Canal traffic or a resolution to the Russia-Ukraine conflict could lower tonne-miles demand and suppress product tanker earnings. The unfolding of post Iran-Israel conflict situation would be crucial in deciding the freight rates in tanker market. Furthermore, the shift to clean energy has added another dimension to the tanker market as it will significantly replace oil with renewables, while the petchem industry will support the demand for LPG and Naphtha. With future oil demand driven primarily by Naphtha and Jet fuel, LR tankers are expected to see stronger demand than smaller product tankers in the segment.

Opportunities

A likely rebound in China’s refinery runs in coming months will boost long-haul crude trade, which will keep tonnage utilisation of VLCCs high amid the stable fleet. Any possible resolution of the Russia-Ukraine conflict will increase short haul crude trade between Russia and Europe, hurting tonne-mile demand for crude tankers, especially mid-size tankers. It is expected that OPEC+ producers may continue to curb production amid surging non-OPEC output. However, any possible easing in production cut by OPEC+ members will have positive demand scenario and can boost trade. Stricter sanctions on tankers employed in the shadow trade of Russian oil will squeeze tonnage supply in the market and more non-sanctioned vessels will be needed for the Russian crude within price cap. Any shift in Iranian sanctions policy will increase the oil supply from the Middle East Gulf providing loading opportunities.

Further, as a result of the new IMO regulations there could be increase in tonnage scrapping which will tighten the tonnage list and further improving rates. For product tankers, increasing refinery runs in East of Suez, especially in the Middle East and India, will support the export of refined product. Further, with future oil demand driven primarily by naphtha and jet fuel, LR tankers are expected to see stronger demand than smaller product tankers.

Risks and Concerns

The ongoing economic and geopolitical uncertainties pose a significant risk to the prospects of crude tankers. The recent Iran-Israel conflict as well as US sanctions on Russian tankers will impact largely on freight rates as it will disrupt crude oil supply in the coming years. The Israel-Hamas conflict has forced many tankers avoid the Suez Canal and transit via the Cape of Good Hope. However, the recent peace deal between Israel and Hamas has increased the odds of potential normalisation of the trade through the Suez Canal. Any such improvement in Suez Canal traffic will ease Red Sea transits and it will normalise the voyages, hurting tonne-mile demand for crude tankers. Further disruption to the Russian crude flows will squeeze global crude oil trade and tanker demand. Any delay in reaching full capacity utilisation of the TMX pipeline because of operational bottlenecks will hurt the seaborne exports of Canadian crude and thereby, tonnage demand for Aframax tankers.

In long term the demand for the diesel and gasoline is set to decline gradually due to higher EV sales and increasing fuel efficiency. It will be a major concern for the product tankers. The shift to clean energy will further replace oil with renewables, while the petchem industry will support the demand for LPG and naphtha.

The new IMO Regulations pertaining to decarbonisation will increasingly have a significant impact on the tanker trade. There will be requirement of retrofitting Energy Saving Devices on old vessels which are burning fossil fuel. Such retrofitting may become economically unviable and can lead to fleet owners to invest in modern energy efficient tonnage by incurring substantial capital costs.

2) Dry Bulk

The overall dry bulk segment earnings for the year FY 24-25 were weaker as compared to FY 23-24. The average Baltic Dry Index (BDI) slipped slightly in FY 24-25 when compared to FY 23-24 and the TCY earning were also lower, especially for Panamax segment. While the first 3 quarters of FY 24-25 were relatively healthy, the Dry Bulk market endured a tough time in Q4 of 24-25, with markets staying below breakeven levels for most of the quarter. Unlike Q4 of 23-24, which had defied the cyclical lull of Q4, the months of Jan and Feb were very subdued with market exhibiting weaknesses in both supply and demand.

In 2025, total Dry Bulk Trade is expected to grow more softly than it did in 2024, both volume wise as well as tonne-mile wise. By volume, dry bulk trade forecast to grow by 2.1% in 2025, down from a higher growth rate of 3.2% in 2024 and by tonne-mile demand (reflecting distance and volume) is expected to increase by 2.4% in 2025, also slower than the 3.6% growth in 2024. The moderation in growth projection reflects recessionary fears, trade tensions, and policy uncertainties globally.

In the first 6 months of 2025 so far, Dry bulk markets have been dull. In Jan - Feb the Dry Bulk market had tumbled and was at one of the lowest levels since 2020, especially in the Indian Ocean region. While in March the market did improve with occasional spikes, the average yields were not comfortably above the breakeven levels. From demand point of view, the rest of 2025 is not expected to be not very exciting as global economy is appears to be sliding into a recessionary phase whereby the economic growth is projected to slow down to below 2.5% in 2025 and 2026. Iron Ore and coal movement will continue to be major drivers in 2025, however China’s stockpiling and slower domestic demand may temper overall impact. Moreover, grain trade is also expected to decline after strong 2024 trade, owing to reduced exports from major suppliers like the US, EU, Russia, and Ukraine.

From supply point of view, some support can be expected as fleet Growth will slow to 1.4% in 2025, down from 2.1% in 2024, due to modest new build deliveries, higher demolitions, and IMO Carbon Intensity Indicator (CII) speed restrictions.

The effective supply is expected to remain constrained, which is likely to support the freight market despite moderate demand growth. Overall, the dry bulk market in 2025 is expected to grow more moderately than in 2024, with supply constraints supporting freight rates, especially for Capesize vessels. However, downside risks from economic slowdown, trade policy shifts, and geopolitical uncertainties may cap upside potential for smaller segments.

Your company’s dry bulk fleet comprises of eight modern Supramax vessels of around 57,000 dwt each & seven modern Panamax / Kamsarmax dry bulk carriers of around 80-82,000 dwt. The dry bulk carrier fleet is relatively young with an average age of about 13.1 years. The company’s dry bulk carriers have been engaged over a spread of various trade & deployment pattern like spot voyages, period time charter including index linked time charter, COA’s etc. In addition to import/export/cross trade voyages, your dry bulk carriers were also employed on Indian coast, performing a few coastal time charters & voyage charters, whose earnings compare well with markets. The diverse trade & deployment patterns ensured that the market volatility and geo political uncertainties were well covered.

Opportunities

About 65% of dry bulk trade is expected to be Iron Ore and Coal. Iron ore remains the biggest opportunity driver as Australia and Brazil expand exports.

China’s strategic stockpiling and stable demand from sectors like machinery and EV manufacturing will sustain seaborne trade. The global iron ore trade is projected to grow 2.9% in 2025,underpinned by stable steel demand worldwide especially in Asia Pacific.

India is seen as a bright opportunity with India’s strong GDP and industrial growth in 2025 expected to create significant demand-side opportunities. India’s crude steel production is projected to grow by 7.1% in 2025, driven by infrastructure expansion and private sector investments. This will drive Iron ore requirements. Similarly, increasing power demand is expected to provide good support for growth in coal trade.

From the supply side, slower fleet growth (1.4%) and regulatory measures (IMO’s Carbon Intensity Indicator) are expected to restrain supply expansion and thus support freight levels. This supply-side discipline will support higher earnings for modern, fuel-efficient vessels.

Other than pure supply demand factors, a lot will depend on how geo-political issues and trade war pan out. US - China trade tensions and new tariffs could create fresh routing opportunities. As geopolitical tensions and tariff risks continue to weigh on the US - China trade, Chinese buyers increasingly shift away from American soyabeans in favour of competitively priced Brazilian produce, thereby likely to fuel Panamax tonne-mile demand.

Another possible upside is the growth in tonne-mile of Bauxite and other minor bulk trade. Bauxite shipments from Guinea to China are increasing and expected to engage more Capesize tonnage, boosting tonne-miles.

Risks & Concerns

Leading indicators suggest that GDP growth across major economies may slow to below 2.5%, impacting industrial activity, manufacturing output, and infrastructure spending. This poses a direct risk to demand for key dry bulk commodities.

Also, China remains central to the dry bulk market due to its dominance in iron ore, coal, and steel-related trades. However, structural challenges in its property sector, environmental restrictions on steel mills, and evolving trade policies could constrain its import appetite.

In terms of geo politics, the stability (or the lack of it) in Red Sea/Suez canal will also play a role. Any geopolitical easing in the Red Sea/Suez Canal region could reduce tonne-mile demand. Also, US Tariff Measures tariffs targeting Chinese-owned, operated, or built vessels may distort trade flows and restrict some fleet utilization, which may lead to a two-tier market.

3) LNG Transportation

The year 2024 marked a downturn in the global LNG market, primarily due to reduced gas demand in key European and Northeast Asian countries. This was largely driven by the accelerated adoption of renewable and nuclear energy sources. At the same time, uncertainties surrounding over 300 million tonnes per annum (mtpa) of planned LNG supply amid geopolitical, financial, and environmental concerns has further constrained trade activity.

Despite these challenges, the global LNG trade is projected to grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2029. Asia is expected to dominate, accounting for 70-75% of total LNG trade by 2029. China, India, Taiwan, Japan, and South Korea are set to drive this growth, together comprising nearly 50% of global imports. While imports from Japan and South Korea are forecasted to decline gradually due to expanding nuclear generation, both countries will remain critical to the global LNG market. China and India are expected to register the strongest import growth 11% and 8% respectively driven by economic expansion, a shift from coal to gas, and the growing role of gas in the power and industrial sectors.

In Europe, LNG imports weakened in 2024 amid strong renewable and nuclear generation and above average inventory levels. However, a colder than expected 2024-25 winter temporarily boosted LNG demand. A modest recovery in European imports is anticipated from 2025, peaking in 2026, as the region continues to diversify its energy mix and extends its reliance on LNG due to delayed renewable integration and growing opportunities in synthetic and bio-LNG.

The LNG market is expected to remain tight through 2025-26, with limited new liquefaction capacity scheduled. This could lead to price volatility, potentially hindering LNG-to-power and bunkering projects in price-sensitive regions. An oversupply scenario is likely by the decade’s end, which should support broader demand growth and expansion into new import and export markets.

The U.S. is expected to lead in new LNG supply volumes, though its political and fiscal environment will influence project timelines. On the demand side, China will remain the top importer, driven by growing use of LNG in power, industry, and transportation. However, geopolitical factors such as the U.S.- China trade relationship, Russia’s pivot to China, and China’s economic trajectory will

be key in shaping the market.

While European demand is expected to stabilize, South and Southeast Asia are set to drive the next wave of LNG growth. Market dynamics may hift in favor of sellers by 2027, potentially leading to price reductions. The competition among top exporters - Qatar, U.S., and Australia is expected to intensify, with scepticism surrounding Australia’s cost competitiveness.

Shipping rates declined in 2024-25 amid fleet expansion and weak demolition activity. Fleet growth outpaced trade as 41 vessels were added by Q3 2024, exacerbating vessel oversupply during a period of limited liquefaction growth and soft demand.

Longer voyage routes, particularly via the Cape of Good Hope, may help support shipping rates in 2025, especially given rising U.S. -Asia trade and on-going tensions at the Strait of Hormuz. However, it will be other way as US is trying to resolve the Red Sea crisis. Charter rates are not expected to improve in 2025 but moderately grow as supply-demand fundamentals may be rebalanced. More than 50% of the total current estimated required LNG fleet are in the order books and these vessels will be delivered by 2027. Vessel demolitions are expected to rise due to ageing fleets and stricter regulations, peaking around 2027-28. New regulations by EU and IMO on the methane ships are expected to be implemented by 2027-28.

The global regasification capacity is projected to expand at a CAGR of 4.0% reaching 1,432.3 mtpa by the end of 2029. The growth will be driven by the rising interest in LNG-to-power projects and increasing LNG demand in Asia, which accounts for 73% of the current under-construction capacity.

Europe has been investing heavily in building regasification capacities to diversify its supply from Russia, but the long-term use of the existing terminals is at risk, especially given the recent weak demand and stiff competition from alternative energy sources. It is expected that Europe’s regasification capacity to grow modestly over the period, but larger potential still lies in Asia.

Moreover, the development of LNG import terminals will be boosted by the expected rise in investments for more LNG-fired power plants, mainly in Asia and South America, supported by the ease in prices (expected post-2026).

Further, it is expected that there will be increase in conversion opportunities for older ships to FSRUs and FSUs due to the rising scrutiny and shrinking employment opportunities for the ageing steam turbine vessels amid tight new building capacity.

Although 45 mtpa of new liquefaction build-up is expected in 2025, it will be insufficient to absorb newly built vessels as 1) Most of the new supply will be added by the 2025, 2) The delays in project start-up will curtail the expected supply growth, 3) nearly about 83 and 88 LNGCs are scheduled to be delivered in 2025 and 2026, respectively, despite adjusted slippages, and 4) demolitions will be higher in 2025, a greater impetus will be required to stabilise the supply-demand imbalance, which seems unlikely in 2025. Thus, high vessel availability will nudge buyers towards spot purchases, keeping short-term chartering subdued in 2025-26.

Over the long term, countries such as Ecuador, Nicaragua, Ghana, Morocco, South Africa, and Mozambique may begin importing LNG as affordability and availability improve. By 2030, 350 mtpa of new liquefaction capacity is expected to come online.

India

•    India is considered as one of the bright spots, recording YoY increases in their LNG imports in Q4 of 24 due to higher gas demand for electricity generation and declining domestic production. Imports increased 26% YoY in 2024, to a high 27.8 million tonnes in 2024. This surge can be attributed to the rise in consumption, particularly by city gas distribution companies. Despite the increase in consumption, domestic production remained muted, leading to a rise in imports

The key reasons for the steady increase in LNG imports are mainly due to the Increasing demand from city gas distribution, Falling domestic gas production, Expanding LNG import Infrastructure, Supportive policy and shift towards natural gas.

•    India’s LNG imports to remain robust in 2025, driven by following factors:

-    The stronger economic growth and growing dependence of the country on imported LNG, which now accounts for more than 50% of the country’s LNG consumption

-    A gradual increase in offshore gas production and the expansion of pipeline infrastructure to the northern regions

-    The growing government support to LNG infrastructure development with the goal of increasing the share of LNG to 15% in the energy mix by 2030

-    The shift towards piped natural gas from bottled petroleum gas

-    Government support for increasing the number of CNG stations to 18,000 across the country by 2032.

•    The expansion project, which is set to be completed in 2025, will also support this trend - the 5 mtpa Dhamra LNG terminal is expected to see increased imports with the completion of the Pradhan Mantri Urja Ganga pipeline

•    Furthermore, GAIL India will start operating its 5 mtpa Dabhol LNG terminal at full capacity, boosted by new breakwater facility

infrastructure. To seek additional LNG supplies for meeting India’s growing demand GAIL (India) is actively seeking long-term supply deals for LNG amounting to 5.5 mtpa, raising its capacity to 21 mtpa by 2030. The company has already signed deals for the supply of 15.53 mtpa of LNG, with recent deals with Vitol and ADNOC for the supply of 1 mtpa and 2 mtpa, respectively.

•    With renewable energy still not fully capable for grid connectivity, dependency on coal-based and gas-based plants is expected to increase to meet the incremental power demand, especially during seasonal peaks as witnessed in 2024 when higher cooling demand amplified the role of LNG power generation.

•    LNG consumption by India’s power sector is also expected to grow as the country progresses with various LNG to power projects. The Central Electricity Authority projects that the country’s power demand will grow at a CAGR of 7% over the next five years.

•    Three terminals of India that is Chhara LNG, Jafrabad FSRU, and Dahej LNG Phase 2 are under construction with a combined capacity of 15 mtpa. Upon completion, India’s total regasification capacity will rise to 62.7 mtpa. While current utilization remains low, it is expected to improve as LNG import demand grows at a projected CAGR of 8%.

•    Your company jointly owns and operates 3 LNG carriers under long term charters with charterers Petronet LNG Limited, India for transportation of LNG predominantly from Qatar. The 4th LNG carrier is under long term charter to Exxon Mobil LNG Services B.V, Netherlands. In order to ensure its presence in the new areas of the LNG market, your company is exploring opportunities for operating small LNG carriers and coastal LNG shipping as well as other emerging opportunities in India’s LNG import sector. Your company has built up a pool of trained LNG officers and the experience of independent technical operation of LNG tankers has helped to provide ship management services.

4) LPG Transportation

India’s LPG imports surged to 27% in 2024 from last year. The LPG imports of 2024 were 22.7 million tonnes compared to 17.9 million tonnes in 2023. The top four Asian importers (China, Japan, South Korea and India) surged 10.4% in 2024, reaching 75.8 million tonnes and constituting 57.3% of the global LPG trade. The growth was driven by India’s stronger than expected residential and industrial demand. The LPG imports account for 90% of the India’s LPG demand. Additionally China’s resilient petchem demand of 2024 and Vietnam’s robust demand all throughout year led the surge in 2024.

After the national elections held in 2024, the country added 75 million low-income households under the Pradhan Mantri Ujjwala Yojna (PMUY) subsidy scheme, increasing residential demand. State policy to keep the price of a 14.2 kg LPG cylinder stable throughout 2024 also added to the residential demand. Further, competitive pricing of propane as compared to piped natural gas resulted in strong industrial demand for LPG, particularly from the ceramic manufacturers in Gujarat’s Morbi region.

While 2024 marked a year of record imports, India’s LPG consumption is expected to dip in 2025 due to multiple headwinds:

-    Urban Transition to Piped Natural Gas (PNG): Urban households are increasingly shifting from LPG to PNG, especially in metros.

-    Subsidy Reduction: The anticipated rollback of government subsidies will likely temper residential demand.

-    Price Adjustments: Expected alignment of residential LPG prices with Saudi Arabia Contract Prices (CP), along with a projected increase in CP particularly if a US - China tariff war boosts Chinese demand could make LPG less affordable for price-sensitive consumers.

-    Competitive Energy Sources: The rise of PNG and other alternatives in urban areas will pose additional challenges.

Despite a potentially softer demand outlook, several factors are expected to support India’s LPG import levels in 2025:

-    Infrastructure Development: The Kandla-Gorakhpur LPG pipeline, spanning 2,800 km, is scheduled to commence operations by March 2025.

-    Petrochemical Investments: New capacity additions, such as Reliance Industries’ Jamnagar Polypropylene Plant 3 (with a capacity of 5.2 mtpa), will increase LPG use in the industrial and petrochemical sectors.

-    Terminal Expansion: Continued investments in LPG import terminals will enhance handling and distribution capacity.

India’s economy is projected to grow at 6.5% annually until 2029, with inflation expected to ease to 4.5% in 2025, moving toward the RBI’s target of 4% by 2029. Additionally, the country’s aggressive push in renewable energy (solar, wind and green hydrogen) is likely to reshape energy consumption patterns and reduce dependency on fossil fuels over the long term, including coal.

Your company’s sole VLGC carrier - VLGC Nanda Devi, was employed under time charter with Indian energy PSU during the financial year under review. The daily earnings were attractive as compared with markets.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The bottom line and top line of tanker segment exhibited improvement to the already strong performance of last year. The financial performance of the tanker segment has been largely influenced by earnings on all segments.

Your company’s five VLCCs were gainfully employed during the financial year under review; in a mix of time charters and spot voyage charters with Indian charterers both in public and private sector. The segment earnings were in line with the prevailing market and brought good margins over vessels’ operating costs.

Your company’s modern Suezmax tankers were deployed in a mix of Indian as well as foreign charterers mainly on voyage charter basis. Older Suezmax vessels were available for trading after their fourth special survey and were gainfully deployed on account of Indian oil refiners to carry import cargoes.

Aframax tankers were deployed in a mix of COA, spot voyages and time charter for carriage of Indian import cargoes as well as cross trade cargoes. Through judicious deployment of some of the modern tankers in international cross trades and by triangulation of voyages, your Company maximized earnings of these tankers.

Out of five LR1 tankers trading in DPP, four tankers were employed on Indian coast in a mix of COAs and spot voyages, catering to coastal crude movement for the Indian oil industry. One DPP LR1 tanker was employed with foreign charterers ensuring steady earnings at healthy levels.

In case of product carriers, LR2 and LR1 tankers of your Company were deployed in the East of Suez market in the international cross trades and achieved a healthy level of revenue as compared to the prevailing market. Three MR product tankers were gainfully employed on the Indian coast supporting coastal movement of Indian oil industry’s product cargoes.

With respect to Dry Bulk segment, contrary to FY 23-24, the 1st half of FY 24-25 was relatively healthy before the market started tapering off.

Although the period of Jan- Feb is generally seen to be weak for the Dry Bulk segment, the drop in levels was lot more significant as against what was expected. In Q4 of 24-25, the grain movement from South America, especially Brazil was seen to be weak, leading to lot of ships stuck in the Pacific. As these ships were engaged in trade movement within the Pacific, the tonne-mile dropped substantially, thereby exacerbating the situation.

However your company’s diversified strategic tonnage deployment of tonnages (including a COA in dry bulk segment) minimized the negative impact of decline in the dry bulk segment. The segment revenue of Dry Bulk carrier actually improved slightly in FY 24-25 visa-vis FY 23-24, however, the PBIT fell short due to higher depreciation and other non operating expenses.

C. LINER AND Passenger Services

A. Industry Structure & Developments

1) World Scenario:

A.1 In 2024-25, the shipping industry grappled with weaker global growth and complex trade dynamics. The OECD cut its 2025 GDP forecast to 2.9% amid inflation and tighter monetary policies. Modest trade gains and ongoing tensions impacted regional demand and strategic shifts across the sector.

A.2 Container shipping saw strong growth from e-commerce and inventory replenishment, prompting record fleet expansion and a shipbuilding boom, with yards booked till 2028. However, this has raised concerns regarding capacity oversupply leading to weak demand. While containers led orders, demand also surged for LNG and car carriers. New builds increasingly featured dual-fuel and green-ready designs to meet future environmental norms.

A.3 Geopolitical risks—especially Red Sea disruptions forced longer routes around the Cape of Good Hope, raising costs and transit times. Additional challenges from U.S.-China tensions, the Russia-Ukraine war, and rising protectionism disrupted trade flows. Meanwhile, de-carbonization pressures driven by IMO mandates, drove investments in alternative fuels and efficiency, though progress varied due to cost and technological challenges.

B) Indian Scenario:

In fiscal year 2024-25, India’s economy experienced robust growth of 6.5%, establishing it as one of the fastest-growing major economies globally, a fact confirmed by both the Reserve Bank of India and the World Bank. This expansion was primarily driven by strong performances in the construction and manufacturing sectors, alongside a significant rebound in rural consumption during the final quarter. While impressive, this pace did moderate slightly from the previous year’s 8.2%, reflecting a post-pandemic normalization and the influence of global economic headwinds. Despite these challenges, India’s external sector remained stable, with resilient export performance—particularly in services—helping to narrow the trade deficit, even as imports remained high due to energy, defense, and capital goods need.

A key highlight for India’s maritime sector in FY 2024-25 was the impressive 4.3% annual growth in cargo handling at its Major Ports,

which processed approximately 855 million tonnes. This increase underscored the ports’ resilience and growing capacity, driven by higher container throughput and increased handling of various commodities, with Petroleum, Oil, and Lubricants (POL) remaining dominant. Furthermore, May 2025 marked a pivotal moment with the inauguration of the Vizhinjam International Seaport in Kerala. As India’s first deep-water transshipment and automated port, capable of accommodating ultra-large container ships, it significantly strengthens India’s role in global maritime trade.

2)    Business Sector & Outlook

Global GDP growth is expected to slow to 2.7-2.9% in 2025 (World Bank, IMF, OECD), down from 3.3% in 2024, with UNCTAD projecting a lower 2.3% amid uncertainty and geopolitical tensions. Merchandise trade is forecast to rise by 3.3% (WTO), while services exports - led by IT, tourism, and digital trade are set to continue outpacing goods.

The global container shipping market anticipates moderate demand growth of approximately 3% in TEU-mile demand for 2025, a significant deceleration from 2024’s 17% increase. This is set against fleet expansion of over 5.4%, raising concerns about overcapacity and potential softening freight rates. While temporary trade rerouting due to the Red Sea crisis offers some short-term support, analysts like MSI caution that this is fleeting. The influx of roughly 2.1 million TEUs of new vessel capacity in 2025, concentrated in ultra-large vessels, could lead to renewed rate volatility once current disruptions ease.

3)    SWOT Analysis - L&PS Division

A)    Strength & Weaknesses:

A.1 Liner Division of SCI has vast experience in liner trade, instilling confidence in cargo interests / owners who continue to lend their invaluable support to SCI.

A.2 Global network of agent provides and facilitates for localized contacts in markets to offer bespoke, customised, end-to-end total logistics solutions.

A.3 Operating partnerships have been forged with internationally recognized container carriers in select consortia, to enhance coverage and frequency on major trading routes.

A.4 Break-bulk operations are providing a stable source of revenue.

A. 5 Compared to Global Shipping Lines, the percentage share of SCI’s Liner Fleet is small.

B)    Opportunities & Threats:

B. 1 Substantial growth of Indian EXIM container trade facilitated by enabling GOI policies viz. Maritime AmritKaal Vision 2047, Maritime

Vision 2030, Sagarmala, Gati Shakti, National Logistics Policy, Foreign Trade Policy 2023 etc.

B.2 Substantial potential for enhancing presence on Indian coast in coastal shipping sector, feeder operations etc.

B.3 India-Maldives service would serve as template for expansion into Indian Ocean Region (IOR) & near Coastal Regions.

B.4 Break-bulk sector affords inherent potential for carriage of ODC / Project / Heavy Lift cargoes of Government Organizations / Departments / PSUs etc.

B.5 Supply / demand overhang with increased box-ship order book dominated by larger ships (ULCS / VLCS) placing considerable stress on already depressed freight markets.

B.6 Merchandise/EXIM trade growth is being hindered by geopolitical risks, global inflation, slowing demand, trade tariffs, high inventory overhang, and rising protectionism, all of which are depressing capacity utilization and impacting emerging markets.

B.7 Extreme volatility in input costs viz. especially bunker prices, charter hire rates, container shortage/surplus depending on the service routes, increased regulations by regulatory bodies, huge investments in advance technologies which is ever evolving, port / terminal / depot tariffs etc. severely impacting bottom line.

4)    Liner Shipping Services 2024-25 A) Segment-Wise Performance

Liner Vessels: Table below shows profile of SCI’s liner fleet as on 31.03.2025 having a total container carrying capacity of 20,000 TEUs (nominal capacity).

SCI owned container vessels viz. MV SCI Chennai and MV SCI Mumbai are 16 years old. As on 31.03.2025, 5 vessels including 3 inchartered container vessels having combined DWT of about 2,70,198 MT were operated by SCI.

In addition to above owned and in-chartered vessel, SCI also has loading rights on 13 vessels of its partners in various consortia arrangements with leading Shipping Lines.

SCI continued to be present in following sectors.

B)    Container Services

B.1 India - Europe Shipping Services: SCI launched its UK-Continent Cellular Container Service in 1994, initially as a sole operator with three 1,800 TEU vessels. The service evolved to a fixed-day weekly schedule with partners, then rationalized in 2009 by forming a consortium with MSC, with SCI contributing two 4,400 TEU vessels to an eight-vessel operation. By early 2016, the service was upgraded to nine vessels of 8,500-10,000 TEU, with SCI providing one 8,500 TEU chartered vessel until its redelivery in August 2021, after which SCI maintained its presence via slot purchase from MSC.

The ongoing Red Sea crisis, prompting rerouting via the Cape of Good Hope, increased voyage durations for MSC’s Asia-Europe services (IPAK and Himalaya) from 63 to 84 days, necessitating an increase from nine to twelve vessels. MSC subsequently reorganized these services. In response, SCI in-chartered the 9,000 TEU "SCI Delhi" in January 2024 and inducted it into the India-Europe Service at Nhava Sheva on October 18, 2024.

B.2 SCI’s Coastal Shipping Services: SCI operates the SMILE service, linking India’s West Coast to its Southern ports. Additionally, through a partnership, it provides connectivity to the East Coast via the Chennai-Colombo-Gulf (CCG) Service. This collaboration significantly enhances SCI’s capabilities, allowing for high-quality, fixed-day, fixed-window coastal services. These two services, SMILE and CCG, create a robust network that enables SCI to connect pan-Indian ports with improved transit times. This expanded reach includes connecting the West Coast to Eastern ports like Vizag, Kattupalli, and Krishnapatnam, effectively promoting a pan-India shipping service. SCI is actively cooperates with other entities to develop optimal, commercially viable, and environmentally friendly transportation solutions for the trading community. By facilitating increased coastal shipping and modal shifts, SCI is a key contributor to the propagation of Indian coastal trade and the goals of the Sagarmala initiative.

B.3 India—Maldives Shipping Services: India-Maldives Cargo Shipping Service was jointly launched through a virtual ceremony on 21.09.2020, adding a new chapter in connectivity initiatives taken by both Countries in the Indian Ocean Region (IOR). Although majority shipments are containerized in nature, this service also caters to Breakbulk cargoes. Currently, MV MSM Douro, a 220 TEU (nominal capacity) vessel in-chartered by SCI, has been deployed in IMS Service operating between ports of Tuticorin & Male.

B.4 Inland Waterways Services: SCI’s wholly owned subsidiary, Inland & Coastal Shipping Ltd (ICSL), established in 2016, focuses on inland waterway transportation. In 2021, ICSL signed an MOU with the Inland Waterways Authority of India (IWAI) to operate three cargo vessels on bareboat charter on National Waterways serving Indian hinterlands & 2 cargo vessels were taken over by ICSL in January and February 2021 and third vessel was taken over by ICSL in December 2024. ICSL launched scheduled services on NW1 and NW2 in December 2024 under the JalVahak Scheme, promoting cargo movement on inland waterways. Furthermore, ICSL and IWAI also agreed in March 2022 for ICSL to operate two IWAI-owned RO-RO vessels to boost RO-RO transportation; one vessel, MV Gopinath Bordoloi, was out-chartered in August 2023, and the second, MV Sankar Dev, is expected to be taken over by ICSL soon.

B.5 Feeder Operations: SCI enters feeder arrangements with “Common Carriers” between various destinations / port-pairs on Indian Sub-continent for providing seamless connectivity for EXIM & Coastal trade.

B.6 Break-Bulk Services: SCI arranges carriage of break-bulk cargoes on space charter basis from various regions across globe including USA, Europe, Far-East etc. for imports of Government Departments / PSUs and other GOI Organisations, which includes ODC / Project / Heavy Lift / IMO Class-I Cargoes etc. and also containers.

B. 7 Marketing: SCI’s marketing team continues to make regular customer calls through its own Offices and also through Agents

appointed at various ports in India and abroad in order to market its container and break-bulk services. Both physical & virtual meetings with Agents, Customers, Shippers, and Cargo Consolidators etc. are held periodically, and SCI representatives also participate in various trade meets at important locations in India.

C)    Managed Vessels

L&PS Division also oversees the operation and management (O&M) of vessels belonging to other government organizations. The O&M brief for these managed vessels includes:

C. 1 O&M of A&NA (Andaman & Nicobar Administration) owned vessels: L&PS Division operates domestic passenger and cargo

transportation services between mainland and A&N group of islands and inter-islands by managing vessels owned by Andaman &

Nicobar Administration (A&NA). Presently, a total of 25 vessels of A&N administration are being managed by SCI. These comprise of 17 nos. Foreshore passenger vessels, 6 nos. inter-island vessels, 01 no. Mainland vessel and 01 no. cargo vessel.

C.2 O&M of other organizations: During the year, SCI continued operation and management of Oceanographic and Coastal Research vessels on behalf of the Government agencies / departments, viz, three vessels owned by Geological Survey of India (GSI) under Ministry of Mines.

The following table shows the profile of Passenger vessels, cargo vessels and other vessels of various Government departments managed by L&PS Division.

C.3 ndia-Sri Lanka Ferry Service: International passenger ferry services between Nagapattinam, India and Kankesanthurai, Sri Lanka, began on October 14, 2023, initially using the HSC Cheriyapani as a temporary measure. To secure a long-term solution, SCI issued an Expression of Interest (EOI) in October 2023. After thorough evaluation of the proposals, M/s IndSri Ferry Services Pvt. Ltd. was chosen to operate the route.

M/s IndSri Ferry Services then acquired the 150-capacity passenger vessel "Sivagangai." Following its relocation from Port Blair to Chennai, the vessel underwent essential repairs, surveys, and certifications. The "Sivagangai" officially commenced service on August 16, 2024, connecting Nagapattinam and Kankesanthurai.

SCI has been instrumental in supporting M/s IndSri Ferry Services, providing comprehensive assistance with certifications, planning, and ensuring regulatory compliance for the international service. Initially, the ferry operated three times a week. By October 2024, M/s IndSri Ferry Services increased the frequency to four times a week (Tuesday, Thursday, Saturday, and Sunday) to meet passenger demand. Due to seasonal weather conditions, the service was temporarily suspended from November 19, 2024, and restarted in February 2025.

5)    Outlook:

(A)    India’s FY 2025-26 GDP growth forecasts vary, with the IMF projecting 6.2% due to global trade uncertainties, while the ADB remains more optimistic at 6.7% citing strong domestic demand and investment. Simultaneously, India’s maritime infrastructure is expanding, notably with the recent inauguration of Vizhinjam International Seaport and ongoing developments at various other Indian ports, enhancing port capacity and trans-shipment capabilities. Despite this, the global maritime outlook remains uncertain due to persistent geopolitical challenges like the Red Sea crisis, which causes extended transit times and increased costs, impacting freight rates. Ongoing tariff impositions are also reshaping global trade flows.

(B)    The India-Europe Service is projected to grow in 2025-26, supported by infrastructure upgrades and strategic realignments, despite global uncertainties. However, Red Sea disruptions are forcing route adjustments, while a growing focus on sustainability emphasizes low-emission vessels. Agility and collaboration will be key for players like SCI.

(C)    SCI is committed to expand India’s coastal trade, planning to add more vessels in line with government initiatives like ’Make in India’ and ’Sagarmala’ that foresee significant market growth. Furthermore, SCI is pursuing inland waterway expansion through its subsidiary, ICSL, capitalizing on government efforts to develop this underutilized sector as a key multimodal transport mode.

6)    Risks & Concerns:

Container freight rates are unlikely to sustain the growth seen in the past two years. This, combined with geopolitical instability, could lead to significant volatility and downward pressure on the Liner division’s revenue and profit. However, the L&PS Division’s costcutting efforts may mitigate these impacts. Concurrently, SCI is seeking to expand its liner shipping services and achieve further market penetration in both EXIM and coastal sectors.

7)    Discussion on Financial Performance w.r.t. To Operational Performance:

SCI’s Liner Segment registered a net profit of Rs. 166.22 crores in FY 2024-25, driven by improvements in both volumes and freight rates.

8)    Important Developments, If Any:

As a path breaking initiative to promote cargo transportation through inland waterways, an innovative Cargo Promotion Scheme was

announced by Hon’ble Minister, MoPSW on 15.12.2024. The Scheme named as JalVahak Scheme comprises of two components viz., Scheduled Services on National Waterways 1 & 2 by ICSL (a wholly owned subsidiary of SCI) and grant of 35% incentive to Cargo Owners for modal shift of cargo to Inland Waterways. These initiatives by MoPSW & IWAI are aimed at providing reliable, cost effective and efficient cargo movement to key catchment areas along Kolkata / Patna / Varanasi on NW1 & Kolkata / Pandu (Assam) on NW2. ICSL has been designated as the implementing agency for JalVahak Scheme.

9) Information Technology:

E-tendering platform is extensively being used for procurements, thus enabling transparency and efficiency in the procurement process. SCI has implemented a Vendor Invoice Management system which facilitates registration of invoices centrally by the vendors which then goes through a work flow mechanism for approvals till settlement. Vendor has a facility to track and understand the status of their invoices.

Further to strengthen SCI IT system, SCI is in the process of upgrading complete IT infrastructure. As a first step complete workstations have been replaced with latest machines. Server and other equipment are in the process and expected to complete at the earliest.

D. Technical and Offshore Services Division

Information relating to the year under review viz 01.04.2024 to 31.03.2025:

The T&OS Division of SCI operates fleet of 10 owned offshore vessels. In addition to the above, it has also been managing two (02) vessels of ONGC.

Offshore vessels:

SCI owned Offshore vessels:

Your Company’s owned offshore fleet comprises of 10 vessels i.e. 02 nos. 80T Anchor Handling, Towing & Supply Vessels (AHTSVs), 04 nos. 120T AHTSVs, 02 nos. Platform Supply Vessels (PSVs) and 02 nos. Multi-Purpose Support Vessels (MPSV).

During the year under review, five (5) vessels (one PSV and four 120T BP AHTSVs) continued to be on long term charter with ONGC. Further, two vessels were under deployment with DRDO (one MPSV and one 80T BP AHTSV); and two vessels were under deployment with Indian Navy (one MPSV and one PSV). Vessels deployed with DRDO and Indian Navy were providing assistance in national missions of strategic importance.

While at the beginning of the year, five (5) vessels were with ONGC, all the contracts have been concluded during the year and your company could secure long term contracts for four (4) vessels from ONGC through international competitive bidding process of ONGC. Out of these, one vessel has been deployed back with ONGC after upgradation to DP2 and other fitments. Further, another three vessels were under upgradation, DD/repairs, etc. would be deployed with ONGC in the beginning of the FY 2025-26.

O&M of ONGC owned vessels

i. Specialized vessels of ONGC:

During the year 2024-25, your company continued the Operation & Maintenance (O&M) of ONGC’s one Geotechnical vessel (GTV Samudra Sarvekshak) and one Well Stimulation vessel (WSV Samudra Nidhi).

ii    Other Projects:

DRDO Project:

Your Company continued to deploy its one Multi-Purpose Support vessel (MPSV) “SCI Saraswati” and one OSV “SCI Mukta” with the Defence Research & Development Organisation (DRDO) during the entire FY 2024-25. These vessels are being utilized to meet support requirements towards DRDO’s strategic missions of national importance.

iii    Indian Navy Projects:

Similar to previous year, during the current year also, the Indian Navy has continued to avail services of your company’s one MPSV “SCI Sabarmati” and one PSV “SCI Yamuna”. Your company is proud to have been associated and assisting the Indian Navy in their critical missions of national importance.

Risks and Concerns:

Availability of competent/suitable manpower for the Indian Flag Offshore vessels has become a serious concern. The acute shortage of manpower onboard vessels is hampering the employment of vessels and thereby affecting adversely in commercial operation of vessels. Moreover, with good opportunities available across globe, Indian seafarers are moving to foreign/private shipping lines for pay & taxation benefits, thereby India is facing shortage of competent manpower onboard Offshore vessels.

Further, there has been shortage of availability of yards on the Indian Coast for dry-docking and repairs of Offshore vessels. There are only limited yards present and various difficulties are being faced in availability of dry-dock slots as per the vessels requirements.

Entry of new players in the Indian market with low Capex is another concern and challenge for your company. Many small private players acquiring vintage secondhand vessels at low cost and competition' with these players is a big challenge for SCI. To counter the same, your company has been taking all efforts to deploy vessels on long term basis, so as to avoid the impact of fluctuations in charter hire rates in market.

Strengths and Weaknesses:

Your company has a diversified fleet of offshore vessels with 02 nos. 80T AHTSVs, 04 nos. 120T AHTSVs, 02 nos. PSVs and 02 nos. MPSVs, thus enabling it to cater to requirements of various clients in the offshore market. Your company is also in the process of tonnage acquisition in the required segments.

Further to keep the vessels technologically up-to-date your company has upgraded two 120T BP AHTS vessels to DP-2 and remaining two vessels are in the process of upgrading from DPI to DP2, in line with the market requirements of E&P operators.

During the period under review, your Company has successfully deployed majority vessels on long term charter thus ensuring steady revenues for long term period.

ONGC being the biggest E&P company in India, your company has been employing majority of its vessels with them on long term basis. However to mitigate the risk of dependence on one client, your company has been in constant discussions with various other public/private operators to deploy our vessels for their offshore activities.

While SCI has diversified Offshore fleet, it is comparatively small to cater/fulfill to the needs of E&P companies in India, which is being capitalized by the private & small players by adding low cost assets.

Opportunities and Threats:

The offshore vessel market in India presents several opportunities, driven by the country’s expanding energy sector, regulatory initiatives and increasing demand for maritime infrastructure. Here are some key opportunities:

i.    Oil and Gas Exploration:

>    Increased Exploration Activities: The Indian Government has been encouraging exploration and production activities in its offshore oil and gas fields. This creates demand for offshore assets like Offshore Support Vessels (OSVs), Platform Supply Vessels (PSVs), Anchor Handling Tug Supply Vessels (AHTSVs) and Multi-Purpose Support Vessels (MPSVs).

>    Deepwater and Ultra-Deepwater Projects: As exploration moves to deeper waters, there is a growing need for specialized vessels capable of operating in challenging environments.

ii.    Renewable Energy:

>    Offshore Wind Farms: India is exploring the potential of offshore wind energy. The development of offshore wind farms will require various types of support vessels for installation, maintenance and operations.

iii.    Subsea Operations:

>    Pipeline and Cable Laying: With the expansion of offshore oil and gas fields and the development of renewable energy projects, there is a need for vessels specializing in laying subsea pipelines and cables.

>    Inspection, Maintenance, and Repair (IMR): Regular IMR activities for existing offshore infrastructure present ongoing opportunities for offshore vessels.

iv.    Maritime Security:

>    Coastal Surveillance: Enhancing coastal security and monitoring activities requires specialized vessels equipped with advanced surveillance and monitoring systems.

>    Search and Rescue Operations: The need for efficient search and rescue operations in India’s vast maritime domain creates demand for well-equipped and versatile offshore vessels.

Investment in Technology: Investing in modern, technologically advanced vessels can enhance efficiency and safety in offshore operations.

By capitalizing on these opportunities, companies in the offshore vessel market can play a crucial role in supporting India’s maritime infrastructure and energy ambitions.

With steady growth in the demand for crude oil, the E&P activities are expected to rise, thereby creating shipping demand for offshore assets in the Indian coast. Substantial potential is foreseen for growth in offshore services on the Indian coast as well as in the

neighboring areas. Informatively, during the second half of the year, ONGC floated tender for chartering of various offshore vessels for a long term period of 3 years, wherein SCI was successful in getting contract for one vessel for 3 years period under OSV category. Further, OnGc is expected to publish a global tender for their further requirements in the Offshore field. Also your Company is being approached by various Government organizations as well as private operators for requirement of Offshore vessels. Thus various opportunities exist in the market for deployment of Offshore vessels of your Company.

The Indian offshore market, while presenting considerable opportunities, faces significant competition from both domestic private players and an increasing influx of foreign assets. Recent ONGC tenders vividly illustrated this intense rivalry, evidenced by the high volume of vessel offers from Indian private shipping companies and international entities alike.

Furthermore, the offshore industry exhibits a strong preference for operational efficiency, driving demand towards modern, technologically advanced vessels boasting superior fuel economy. Consequently, older, high fuel consumption vessels, particularly those with DP1 classification, are encountering increasing challenges in securing employment.

Industry Structure and Developments:

i) World scenario:

i)    The offshore support vessels industry is dependent on utilization of rigs, E&P activities and other activities in oil fields, which in turn depends upon strategic decisions of energy security by oil and gas producers, shifts in Government policies and long term crude oil price trends.

Global headwinds, economic turmoil, recessionary trends in many developed economies, impact of Russia-Ukraine war, US Tariffs, etc. played / will be playing the critical role in deciding future course for the off-shore market.

In summary, the global OSV market has shifted from a buyer’s market to a seller’s market, particularly for modern, capable assets.While challenges remain, the outlook is broadly positive, driven by recovering oil and gas activity and the strong secular growth trend in offshore renewables.

ii)    Indian scenario:

The Indian OSV market is primarily driven by the activities of state-owned oil and gas companies, predominantly ONGC, with significant operations on both the West Coast (Mumbai High, Bassein fields) and the East Coast (Krishna Godavari Basin). Consistent demand arises from exploration drilling, production support, and extensive Inspection, Maintenance, and Repair (IMR) programs for the substantial existing offshore infrastructure.

Huge competition is observed in the recent tenders of ONGC, this competitive pressure often means that charter rates in India may not fully mirror the sharp increases seen in some other global regions, although there is likely upward pressure compared to the market lows of previous years.

Meanwhile, offshore vessels of your company were engaged on long term charter with ONGC and other Govt. Departments also, thus having less impact of the subdued market.

iii)    Outlook:

The outlook for the Indian offshore oil industry is influenced by various factors, including domestic and global demand for oil, technological advancements, regulatory frameworks, and geopolitical dynamics. Here’s an overview:

^ Reserves and Exploration: India has significant offshore oil reserves, particularly in the western offshore region of the Arabian Sea and the eastern offshore region of the Bay of Bengal. Exploration efforts continue to identify new reserves, including deepwater and ultradeepwater prospects.

^ Production Growth: The Indian offshore oil industry has experienced steady production growth over the years, driven by projects operated by state-owned companies like Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL), as well as private players like Reliance Industries Limited (RIL). However, ageing fields and declining production rates in some areas pose challenges to sustaining growth.

^ Investment and Development: The Indian Government has been encouraging investment in the offshore oil sector through policies aimed at attracting domestic and foreign investment, promoting exploration and production activities, and facilitating technology transfer. Initiatives such as the Open Acreage Licensing Policy (OALP) and the Hydrocarbon Exploration and Licensing Policy (HELP) aim to boost exploration and production activities in both shallow and deepwater areas.

^ Technological Advancements: Advancements in exploration and production technologies, including seismic imaging, drilling techniques and enhanced oil recovery methods, are enhancing the viability of offshore oil projects in deeper waters and challenging environments. These technologies contribute to unlocking new reserves and improving production efficiency.

^ Global Market Dynamics: The Indian offshore oil industry is influenced by global oil market dynamics, including oil prices, supply-demand trends and geopolitical developments. Fluctuations in oil prices can impact investment decisions, project economics and Government revenue from oil exports.

^ Renewable Energy Transition: The global transition towards renewable energy sources, including solar, wind and hydroelectric power, presents both challenges and opportunities for the offshore oil industry. While there is increasing pressure to reduce reliance on fossil fuels and mitigate climate change, oil will likely remain a significant part of the energy mix for the foreseeable future, especially for industries like transportation and petrochemicals.

In summary, the outlook for the Indian offshore oil industry is influenced by a complex interplay of factors, including technological advancements, regulatory frameworks, market dynamics and the transition towards renewable energy. Despite challenges, the industry is expected to continue playing a significant role in India’s energy security and economic development. Furthermore, ONGC is also expected to come up with more tenders with long term requirements for its offshore assets. Also, more requirements, albeit short term, are emanating from private operators / contractors in the Indian offshore market.

Technical Services:

Technical Consultancy Services

During the year under report, the Company continued to provide technical consultancy services to A&N Administration, Union Territory of Lakshadweep Administration, Geological Survey of India and other Government Departments for their various ship acquisition projects. During the year, your Company assisted A&N Administration in construction supervision of 2 nos. 1200 Passenger-cum-cargo vessels, which are under construction at M/s. Cochin Shipyard Ltd. Similarly, your Company has also been providing assistance to the UTL Administration for supervision of 2 nos. 2000 LpG Cylinder carriers under construction at M/s Goa Shipyard Ltd. The first vessel was delivered to UTL Administration on 19.07.2024 and the second vessel is scheduled to be delivered on 31.10.2025. Your Company is actively exploring opportunities to add new clients to its consultancy base such as SSNNL, ONGC etc. Tonnage Acquisition Programme

During the year under report, your company had envisaged acquisition of new-building and secondhand vessels in various segments viz., Container, Gas, Product Carrier, Offshore vessels, etc.

Necessary steps were taken in this regard and accordingly tenders were floated for acquisition of various vessels and the acquisition is in advance stage of finalization.

Informatively, your company has been continuously scanning the market for right assets in the market in relation to the available employment opportunities and is optimistic about acquisition of vessels at the opportune time.

Eco-Friendly and Conservation of Energy

As a policy, your Company remained committed to environmental protection as per International Convention for the Prevention of Pollution from Ships (MARPOL). Necessary steps have been taken to minimize air pollution and oil pollution from ships.

Your company has floated a tender for acquisition of 2 + 2 Optional new building Platform Supply Vessels having provision of duel fuel capability.

Your company has embarked on various Technical & Operational measures to improve energy efficiency with options to use bio-fuels. Bio-fuel was tried out on one of the Bulk carriers during this period on pilot basis.

As far as Carbon Intensity Indicator (CII) is concerned, SCI is exploring various types of Energy Saving Devices (ESDs)/technology such as propeller boss cap fins, low resistance (high performance) anti-fouling paints, trim optimization, time & speed monitoring, etc with an objective to achieve continuous improvement in ship’s operational CII.

Fitment of Engine Power Limitation (EPL), fitment of PBCF (Energy Saving Device) on some of the vessels, Prevention of use of Single Use Plastics (SUP) onboard vessels in compliance with DGS orders, regular hull cleaning, propeller cleaning / polishing / periodic hull coating during drydock, use of tin free and cybutryne free Anti-fouling paints, using environmental friendly refrigerants, use of asbestos free products onboard, installation of Ballast Water Treatment plants in a phased manner on existing vessels depending on their dry dock schedule (BWTS installation completed on 44 existing vessels till 31.03.2025), replacement of existing lights with LED lights, etc are some of the measures showing your company’s commitment to Eco-friendly policies and conservation of energy. Technology Absorption, Adoption and Innovation

The technological advancement in Maritime sector is focused towards optimizing ship operations, building cost efficiencies, developing sustainable and environment friendly maritime business.

The 2023 IMO GHG Strategy is particularly focusing on reduction in carbon intensity of international shipping (to reduce CO2

emissions per transport work), as an average across international shipping, by at least 40% by 2030. The 2023 IMO GHG Strategy also includes a new level of ambition relating to the uptake of zero or near-zero GHG emission technologies, fuels and/or energy sources which are to represent at least 5%, striving for 10%, of the energy used by international shipping by 2030.Your company is committed to align with IMO’s 2023 revised GHG Emissions strategy.

Your company is continuously trying to identify and implement emission reduction technologies and best practices.

The Company has estimated the Carbon Intensity Indicator (CII) ratings for its fleet, which is helping to monitor vessel’s CII rating and appropriate action plan can be formulated accordingly to improve CII (2% improvement in CII annually from 2023 to 2026).

Your company has taken initiative to install Ballast Water Treatment Plants on all those vessels which are not fitted with the treatment plants. This exercise is being carried out in a phased manner in order to comply with the IMO regulations.

To take of the Cyber related risk, SCI has developed “Cyber Risk Management Policy” in line with the IMO regulations, so as to build capabilities to prevent, mitigate and respond to cyber risks, to reduce vulnerabilities and minimize damage from cyber incidents and protect information systems of SCI.

For the (2 firm + 1 optional) 2000 Domestic LPG Carriers for UTL Administration which are under construction at M/s Goa Shipyard Limited, your company as the technical consultant has recommended various optional features such as installation of sewage treatment plant, double hull protection to fuel oil tanks, etc. over and above rule requirement for such size of vessels which reflects your company’s commitment environment protection and technology absorption.

Situation in Coastal operation and Offshore areas:

Coastal shipping is receiving significant government attention as a means to decongest road and rail networks, reduce logistics costs, and promote sustainable transport.Coastal cargo traffic has seen impressive growth, reportedly surging 119% over the last decade (from 74 million tonnes in 2014-15 to 162 million tonnes in 2023-24).

ONGC continues to be the main player, focusing on maintaining production from mature fields like Mumbai High (recently signing a technical service agreement with BP to enhance production) and developing deepwater assets on the East Coast (KG Basin).ONGC is expected to spend significantly ($3.9-$4.1 billion) on E&P projects this financial year. ONGC has recently concluded tender for chartering of 6 offshore vessels and it is expected that few more tenders are likely to be floated shortly.

Shortage of competent/suitable manpower onboard vessels and limited availability of repair yards on the Indian coast for dry-docking/repairs of offshore vessels has been a major cause of concern for SCI’s Offshore business.

Measures taken to improve services and operations

To keep the vessels technologically up-to-date your company has upgraded 02nos. 120T BP AHTSVs from DP1 to DP2, in line with the market requirements of E&P operators, these vessels also fitted with EFMS (Electronic Fuel management system), CCTV, Data Logger etc. Further, another two vessels (120T BP AHTSVs) are also scheduled to be upgraded to DP2 along with other fitments in the current financial year.

Further your company also endeavours to augment its offshore fleet by acquisition of vessels and deploy on the Indian coast Purchase & Services department Procurement of Good & Services:

Your company enters into rate contract on periodical basis for procurement and supply of high value and safety items like Marine Lubes, Marine Paints, Charts, Wire ropes, LSA / FFA, Life Rafts etc. both at Indian ports and major foreign ports, like Singapore and Fujairah. This ensures timely supply of right quality goods / services to the vessels at reasonable price.

During the financial year 2024-25, your Company continues to support the Micro and Small scale Enterprises (MSEs) by procuring 55.06% of its applicable supplies of goods and services from MSEs as against the set target of 25% in line with the Public Procurement Policy. The Procurement from Women MSE vendors during the year is 5.71% of total eligible procurement exceeding the target of 3% earmarked for women category, while the procurement from sC/ST owned MSE Vendors is 0.65% of eligible procurement as against the requirement of 4% specified under Public Procurement Policy. The shortfall in sub-target of SC-ST vendors has been met from other MSE vendors.

Further, your company actively participates in the programs organized by the Ministry so as to make MSEs aware of the SCI’s requirements. The Vendor Development Programmes (VDP) were conducted by your company on 03rd May 2024, 25th September 2024 and 4th October 2024 for developing SC/ST and Women owned MSE vendors. Your company was appreciated for conducting Special Vendor Development Program on 04.10.2024 for National Small Industries Corporation Ltd - National SC-ST Hub (Agra) in the financial

year 2024-2025. Further, a Vendor Development programme was conducted on 12th& 13th Feb. 2025 in association with MSME Development and Facilitation office, Mumbai and All India Rubber Industries Association, Western Region.

In line with Government’s vision for procurement through Government-E-Marketplace, your company has adopted the Government e-Marketplace (GeM) system of procurement for items which are available in GeM. Target for procurement through GeM portal was set at Rs.260 Crore for the financial year 2024-25. With consistent efforts, your company was able to achieve 100% target set for the procurement through GeM portal.

Protection & Indemnity (P&I) Insurance:

Protection and Indemnity (P&I) Insurance cover entered with three International Group P&I Clubs for your company’s fleet for the policy year 2024-25 commencing from 20.02.2024 has been negotiated by your Company. There was an increase of 1.40% in the renewal premium over the expiring premium for policy year 2023-24.

Developments, if any, There is no material changes affecting the financial position of the company which have occurred between the end of financial year of the Company to which financial statement relates and the date of the report.

Your Company had participated in the tender floated by M/s.ONGC last year and has emerged successful in the global competitive bidding process and accordingly deploying one vessel in OSV category International Safety Management Cell -

The SCI has introduced the Safety Management System by setting up a dedicated International Safety Management (ISM) Cell, which has developed, structured and documented procedures in compliance with the International Management Code for Safe Operation of Ships and for Pollution Prevention (ISM Code), in accordance with the resolution A.788(9) of the International Maritime Organization (IMO) and SOLAS, Chapter IX.

The SCI has laid the foundation of the Safety Management System (SMS) by recognising that the cornerstone of good Safety Management is a commitment from the top management, coupled with the competence, attitude and motivation of individuals at all levels, that determines the expectations of a good Safety Management System.

The SCI has complied with all the functional requirements of the ISM Code, which includes the Safety, Occupational Health & Environment Protection Policy, Drug & Alcohol Policy and Cyber Security Policy.

As regards, Safety Management Certificate (SMC) for SCI fleet, all ships are put up for periodical/ renewal SMC audits within time frame and respective SMCs are accordingly endorsed.

The requirements of various amendments to ISM Code and Statutory regulations from IMO/Flag are also complied with.

Towards addressing all emergency related issues officers with dedicated single point contact numbers remain manned 24 hours in the operating divisions.

The achievement of time-bound certifications was the result of the SCI’s strength of professional experience, planning, training, execution, systematic analysis and quality expertise, which enables SCI to remain world-class ship operator/ owner. The SCI is also in a position to provide such management expertise to other national/ international ship operators.

ISPS Cell

The SCI has successfully implemented the ISPS Code on all vessels on international voyages and coastal trade vessel as per the Administration requirement.

SCI is committed to the following objectives to fulfil the requirements of its security policy:

•    Security of its ships and their crew, passengers and cargo

•    Support to its ships in implementing and maintaining the Ship Security Plan.

Integrated Management System (IMS)

SCI is now in compliance with IMS (ISO 9001:2015 - Quality Management System, ISO 14001:2015 - Environmental Management System and ISO 45001:2018 - Occupational Health and Safety Management System) on board all vessels and shore establishments.

The scope of IMS certification includes

(1)    Owning, Managing and Chartering of ships for transportation of Goods and Passengers,

(2)    Offshore and Marine Advisory Services.

The Certificate is valid till 20th December 2027.

E. PERSONNNEL AND ADMINISTRATION

A.    FLEET PERSONNEL

The global maritime industry is facing a significant challenge in the form of a growing shortage of qualified seafarer officers. Reports from the Baltic and International Maritime Council (BIMCO) and the International Chamber of Shipping (ICS) have highlighted the existing shortfall and projected a potential crisis by 2026, driven by the rapid expansion of the global merchant fleet. The shortage is particularly acute in senior ranks across vessel types, with Bulk Carriers being especially affected.

To proactively address this issue, the Fleet Personnel Department of SCI has implemented a multi-pronged strategy focused on both retention and recruitment. Key initiatives include market-aligned wage enhancements, career progression incentives, rejoining bonuses, family carriage permissions, and targeted talent acquisition drives. These measures have resulted in visible improvements, especially in the manning of offshore vessels and Special Trade Passenger Ships.

Vacancies for fleet personnel are regularly published on the SCI website, and engagement through social media platforms is being actively encouraged to expand outreach. In addition, officers are being recruited both on contract and through manning agents to bridge immediate shortages.

SCI continues to maintain a robust pipeline of future officers by inducting Deck Cadets, Engine Cadets, and Trainee Electrical Officers into the regular roster upon successful completion of shipboard training and acquisition of Certificates of Competency (CoC), under the terms of the INSA-MUI Agreement. While the overall pool of officers has grown, efforts continue to address specific gaps, particularly at the 2nd Mate and MEO Class IV levels, through open market recruitment.

As a pioneer of diversity and inclusion in the Indian shipping industry, SCI remains at the forefront of empowering women at sea. In Calendar Year (CY) 2024, SCI employed 23 women officers and 8 women trainees, supported by initiatives such as age relaxations and fee concessions for aspiring female cadets.

To modernize operations and ensure transparency, SCI has successfully implemented an online system for the selection of crew (ratings). The selection process is continuously reviewed and updated to remain aligned with evolving industry dynamics.

In line with SCI’s mission to be a key player in global maritime logistics, the Fleet Personnel Department remains committed to enhancing the competencies of seafarers in areas such as safety management, green practices, and digital innovation. The Department continues to promote careers at sea through competitive compensation, a supportive work culture, structured performance evaluations, and ample opportunities for professional growth—ensuring SCI maintains its position as a leading Indian shipping company in a rapidly changing global landscape.

B.    SHORE PERSONNEL

Material developments in Human Resource / Industrial Relations front, including number of people employed:

The total Manpower as on 31.03.2025 is 473 (excluding Board Level members), out of which 440 are officers (including AMs on contract) and 33 are staff members. With a view to meet the present and future challenges and be a globally competitive Corporation, various capacity development initiatives and employee engagement activities were carried out in the year 2024-25.

Training and Employee Engagement Activities of 2024-25:

SCI ensures that its employees are up to date to tackle the ever changing landscape of the shipping industry. During FY 2024-25, SCI employees benefited from over 17 in - house and external training programmes. Training man days per employees stood at 0.5 days. Employees were sent for a plethora of trainings ranging from Skill development, specialized courses in Domain, compliance related trainings, Enhancing Inter personal Skills & Business communication, Training for the Technical Superintendents Familiarization / Workshop and Training programme on Reservation in services.

In an attempt to ensure the health of the employees, so as to live a holistic and balanced life style, employees were provided training on stress management, work life balance, general health awareness through trained medical professionals.

Training on IT systems like DANAOS, SAP HCM, SRM, MM and FI was imparted by the IT department. Phygital trainings were conducted to ensure knowledge dissemination to all our offices pan India.

Some of the key conferences attended by employees are Bunkering India, India tanker Shipping and Trade Summit 2025, Coaltrans India Conference and Centre of Excellence in Maritime and Shipbuilding.

Employee engagement

Concerted efforts of the leadership team of SCI to ‘invest in people’ have led to tremendous progress in employee engagement initiatives across the organization. Numerous in-house events was carried out for employees both ashore as well as onboard.

Besides celebrating International Day of Yoga, World Environment Day, Constitution day, Communal Harmony week and Flag Day, National Space Day, Marathi Fortnight, a series of activities were organized.

For the wellness of employees, health check-up camps were organized at the Head Office & Regional Offices. The International Day of Yoga 2024 was celebrated. Various activities including physical yoga and sessions on benefits of yoga by eminent yoga teachers / faculty was conducted for employees, ship staff & all regional offices.

133rd birth anniversary of Bharat Ratna Ambedkar was celebrated on 14th April. Public Sector Week was celebrated by organizing various activities like Health Check-up Camp, essay Writing Competition, Speech Competition from 10th April to 16th April 2024. 1st National Space Day was celebrated on 23rd August.

Marathi Language Preservation Fortnight was celebrated from 14 January to 28th January 2025. Presentation cum Interactive session on NPS by Protean was organized on 18th February 2025. A 2 days camp and session was organized to highlight the various Government Schemes of the Postal Department for all SCI employees.

Reservation Policy

SCI is complying with all the guidelines issued by the Government regarding Reservation from time to time in Recruitments and Promotions.

SC/ST/OBC Report

Annual Statement showing the representation of SCs, STs and OBCs as on 31.03.2025 and number of appointments made during the preceding Financial Year (01.04.2024 to 31.03.2025).

Note:

In financial year 2024-25, process for recruitment of 43 Master Mariners and Chief Engineers in the rank of Senior Manager (E-5) was carried out, out of which 9 Master Mariners and 8 Chief Engineers were selected. In financial year 2024-25, 12 candidates joined.

Women Representation

Company is committed to the principle of equal employment opportunity and strives to provide employees with a workplace free from discrimination. All HR activities of recruitment, placement, promotion, transfer, separation, compensation, benefits and training ensure equal opportunities for skill enhancement and career progression. Company’s efforts are reflected in the representation of women across various hierarchical grades. Women constitute around 21% of total workforce at shore establishments of SCI.

SCI was conferred with "Third Place" for "Best Enterprise Award 2025", a tribute to Excellence in Public Enterprise Management under ’Navratna Category’ in recognition of the commendable work done for the development of women in the organization, at WIPS 35th National Meet at SCOPE Complex, Vigyan Bhavan, New Delhi on 17th and 18th February 2025.

Policy to prevent sexual harassment in work place.

SCI promotes gender equality and has been taking proactive measures to prevent any Sexual Harassment at workplace. SCI has been complying with the requirements of the “The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013”. SCI has prepared a Prevention of Sexual Harassment policy in line with the Act. SCI has constituted a committee comprising of senior women executives and a woman representative from the NGO Pratham to enquire into complaints of Sexual Harassment at the workplace. No complaints were received in the year 2024-25 related to Sexual Harassment.

Additional Information :

There have been no cases of sexual harassment in SCI during 2024-25.

A statement that the company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 [14 of 20131a ong with the following details:-

2. A statement by the company with respect to the compliance to the provisions relating to the Maternity Benefits Act, 1961.

SCI is complying with the necessary provisions as contained in the Maternity Benefits Act, 1961.

CORPORATE SOCIAL RESPONSIBILITY (CSR) AND SUSTAINABLE DEVELOPMENT FORFY2024-25

The Corporate Social Responsibility vision of SCI articulates its aim to be a corporate with its strategies, policies and actions aligned with wider social concerns, through initiatives in education, public health, women empowerment, environment sustainability, skill development and other areas of social upliftment.

SCI has framed its CSR policy in line with the guidelines contained in the Companies Act 2013 and Companies (CSR Policy) Rules, 2021 & 2022 notified therein" and constituted a CSR committee as per the act to coordinate and oversee the implementation of CSR initiatives. The budget available for CSR initiatives in the year 2024-25, as per applicable provisions was Rs.14.32 Crores which was allocated against the following initiatives in the year 2024-25:

CSR Activities for the Year 2024-25

A.    Health & Nutrition

1.    Support for two cardiac ambulance for underprivileged people in urban slums.

2.    A programme towards prevention, detection, treatment and improved nutrition for reducing the incidence and impact of Tuberculosis in households targeting 2500 beneficiaries.

3.    Support for a programme "Nanha sa Dil - Saving Little Hearts" - Screening, diagnosis, treatment support and post-operative care of 66 children with congenital heart diseases.

4.    Support for medical and supportive equipments at Narayanpur District Hospital.

5.    Support of treatment of Clubfoot in 350 children through clinics developed at government hospitals.

6.    Support for running community based program for screening of cervical cancer and nutritional deficiencies among 500 women.

7.    Support for installation of 11 medical equipments in sub-district (govt.) hospital, Kankavali.

8.    Support for Ulcer Care Treatment - a disability prevention treatment - for people affected by leprosy.

9.    Drinking Water Access Improvement for Integrated Child Development Services (Anganwadi Centers) Centers - Installation of 15 deep tube wells (1000 ft) with hand pumps.

10.    Support for sanitation, safe drinking water and other infrastructure facilities at an Inter College for the safety of students.

11.    Support for essential medical equipment’s at Jewar government hospital (PHC).

12.    Support for essential medical equipment’s for sub district hospital - Karanprayag and district hospital Gopeshwar.

B.    Environment Sustainability

13.    Sustainable Afforestation Initiative in Dr. Shyama Prasad Mukherjee Zoological Garden on approximately 6230 sq. m. land by planting 10,000 saplings of 60+ species.

C.    Promotion of Education

14.    Support for Construction of 5 Classrooms and other school infrastructure in Primary School.

15.    Setting up open gym at government schools.

16.    Support for "Savitri Leki Chalaya Pudhe" Project for distribution of bicycles to underprivileged schools girls who walk more than 2KMs to reach schools.

17.    Infrastructure Development (which will have 4 classrooms, one toilet block each for boys & girls) including drinking water facilities at Government Primary School.

18.    Annual Grants for Maritime Education for SC/ST/Financially weaker students studying maritime related courses at Indian Maritime University and Maritime Training Institute.

D.    Skill Development & Women Empowerment

19.    Support for project NARITVA - Socio-economic empowerment of 1000 Women/ girls.

20.    Support for training and upskilling of sanitation workers.

21.    Empowering transgender by Livelihood skill training as per protocols of National Skill Development Council.

22.    Skill development for fishermen / coastal communities in the fields of Aquaculture Worker and Fish & Seafood processing technicians as per National Skill Development Corporation protocols.

E.    Cultural Heritage

23.    An initiative towards commitment to preserve the beauty of country’s heritage by intervening at Vijaydurg Fort, at Vijaydurg, fulfilling the PM’s vision of "VIRAASAT BHI, VIKAS BHI".

24.    Support for development of the National Maritime Heritage Complex.

F.    Social Welfare

25.    Rehabilitation, Upliftment of divyangjan, orphans and elderly people - Support for completing the construction work of the hostel building (2nd Floor).

26.    Support for construction of residential skill development centre for tribal students.

G.    Promotion of Sports

27.    Financial support for development of para sports by contributing to the common fund of Paralympic Committee of India.

The Annual Report on Corporate Social Responsibility 2024-2025 is annexed to the Director’s report as Annexure - I Material Orders of Judicial Bodies/Regulators

Details of significant and material orders passed by any Regulator, Court, Tribunal, Statutory and quasi-judicial body, impacting the going concerns tatus of the company and itsfuture operations-The Canteen Workers deployed in SCI by M/s Saikripa Foods Services Pvt. Ltd. have been deemed to have been absorbed into the payroll of SCI w.e.f 31.03.2011 consequent to Hon’ble Supreme Court Order dtd. 27.01.2025.

Implementation of Official Language Policy.

In accordance with the Official Language policy of the Union Government, SCI continued its persistent efforts towards the progressive use of Hindi in its day-to-day affairs during the year under report. As per annual programme, SCI conducted Hindi activities and competitions at regular intervals and awarded prizes to the employees. Apart from this, SCI also arranged in-house Hindi typing and translation training programme.

Under the Hindi Incentive Scheme, employees’ children were encouraged by giving incentive prizes for scoring 70% and above marks in Hindi subject in SSC / HSC level exams held in the academic year 2023-24.

With a view to creating a sense of competition amongst all Divisions/Departments and individual officers for increasing the use of Hindi in daily correspondence and activities, the Annual Rajbhasha Shield (at Divisional Level) and Annual Rajbhasha Gaurav Sammaan (at Individual Level) schemes were continued for 2024-25 after necessary modifications. For the year 2023-24, the “Annual Rajbhasha Shield” was awarded to Liner & Passenger Services Division, and “Annual Rajbhasha Gaurav Sammaan” was awarded to eligible officers on the basis of their Hindi performance. All these initiatives have proved to be a booster for progressive use of Hindi in daily office routine work.

During Hindi Pakhwada in September 2024, an appeal made by CMD was emailed to all employees to enhance the usage of Hindi in official noting and correspondence. SCI also attended meetings of Town Official Language Implementation Committee (TOLIC) during the year under report and participated in their activities. SCI has conducted a Hindi Seminar under the auspices of TOLIC on “Stress Management through Mental Strength”. In this year SCI has released Hindi Magazine named "SCI Samudri Safarnama" which encourages creativity of employees, provides a platform to share their insightful thoughts and knowledge.

Appointment and Remuneration policy

The appointments in our company are done in accordance with Government of India guidelines. The remuneration to the senior management and other shore employees of SCI is governed by the Presidential Directives issued by the Ministry of Ports, Shipping and Waterways (MoPSW) and Department of Public Enterprises (DPE), from time to time, which forms the remuneration policy of our company.

Memorandum of Understanding (MOU) with the Ministry of Ports, Shipping & Waterways

The MOU for the Financial year 2024-25 is under progress. The MOU is being processed as per the consolidated guidelines issued by

Department of Public Enterprise (DPE) vide circular dated 12th October 2022. Under the new guidelines, entering, signing, monitoring and evaluation of MOU will be done through online dashboard.

MOU performance evaluation data for Financial year 2024-25 on the basis of Audited accounts will be submitted to DPE through online dashboard after the approval of the Board and through the Administrative Ministry by 31st October 2025.

a)    Ship Availability as a percentage of Total Ships:

The Planned Ship Availability (Total days of the year less quoted days for planned repair and dry dock) for 57 ships for 2024-25 was 20242 days. The Ships were available (Total days of the year less Actual repair and dry dock days) for 19006 days which is 93.89 % to the Planned Ship Available days.

b)    Revenue from Exports:

Earnings of SCI from Export Revenue as per the GST Returns filed for the FY 2024-25 amounts to INR 1,78,151 Lakhs (previous year INR 1,54,472 Lakhs). Basis the above, export earnings as a percentage of Revenue from Operations for the FY 2024-25 stands at 31.78% (previous year 30.62%).

c)    Compliance parameters not verifiable from any outside sources:

(i)    DPE guidelines issued from time to time on CSR expenditure by CPSEs has been complied with.

(ii)    SCI has integrated ERP with Vendor Invoice Management (VIM) system on GeM portal

(iii)    Parameters w.r.t. steps and initiative taken for Health & Safety improvement of Human Resources in CPSEs has been complied with.

Utilization of Proceeds from public issues, right issues, preferential issues etc.

During the year 2010-11, your Company had floated a “Further Public Offer”, (FPO), comprising of a ‘fresh issue’ of 42,345,365 equity shares in your company and an ‘offer for sale’ of 42,345,365 equity shares by the President of India. The FPO proceeds of Rs. 582.45 crores were fully utilized in the financial year 2011-12 as per object of the issue for part financing of capital expenditure on nine shipbuilding projects. However, due to delays in the projects resulting in default by the shipyards, during the period January 2014 to May 2014, your Company rescinded contracts for four shipbuilding projects and also, re-negotiated the payments for two projects. The investment in the rescinded contracts out of the FPO Proceeds was Rs. 330.65 crores.

Your Company has received back entire sum of Rs. 330.65 crores from the shipyards. The shareholders vide the resolution passed through postal ballot on 11.02.2017 approved the proposal to re-deploy the said sum of Rs. 330.65 crores received as refund from Shipyards, towards various shipbuilding projects including offshore assets and liquid petroleum gas (LPG) vessels and also for acquisition of the any other such vessels, on such terms and conditions as the Board would deem fit from time to time as mentioned in the approval of the postal ballot. Further based on the approval granted by the shareholders, the Company can also utilize the sum towards the balance payments remaining due for the tonnage acquisition made by it.

The un-utilised FPO proceeds amount of Rs 133.85 crores are kept in fixed deposit.

Large Corporate Entity

SCI is a “Large Corporate” fulfilling the criteria specified in para 3.2 of the SEBI circular no SEBI/HO/DDHS-RACPOD1/P/CIR/2023/172 dated 19.10.2023. There was no “incremental borrowings” by SCI in FY 2023 and FY 2024. The outstanding Qualified borrowings as at the

start of Financial year 2025 was 2267 crores and the outstanding Qualified borrowings as at the end of the Financial year 2025 was 1585 crores. Hence, there are no “incremental borrowings” by SCI in FY 2025.

Additional Disclosures as required under the Guidelines laid down by DPE

i.    Disclosure on materially related party transactions that may have potential conflict with the interest of the company at large. Transactions with all related parties have been entered at arm’s length or in accordance with Provisions of relevant Act.

ii.    Items of expenditure debited in books of accounts, which are not for the purposes of the business:-

There is no item of expenditure debited in books of accounts which are not for the purposes of the business

iii.    Expenses incurred which are personal in nature and incurred for the Board of Directors and Top Management - NIL

iv.    The office and administration expenses as a percentage of total expenses are 5.89% in FY 2024- 25 as against 4.88% in FY 2023-24.

v.    The finance expenses as a percentage of total expenses is 3.75% in FY 2024-25 as against 3.66% in FY 2023-24.

Segment-wise Performance

Report on performance of the various operating segments of the Company (audited) is included at Note No. 31 of the Notes on Financial Statements (Standalone) for the year ended 31st March 2025, which is forming part of the Annual Accounts.

Internal Control System and their adequacy:

The Company has an internal control system that is adequate and commensurate with the size, scale and complexity of its operations. Internal control framework and Risk Control Matrix (RCM) for various business processes is in place. The internal control systems (including Internal Financial Controls over Financial Reporting) are reviewed on an ongoing basis and necessary changes are carried out to align with the changing business / statutory requirements.

Internal audit is carried out by an independent firm of Chartered Accountants / Cost and Management Accountants on concurrent basis. The scope and authority of the Internal Audit function is defined in the Internal Audit Plan, which is approved by the Audit Committee. To maintain its objectivity and independence, the Internal Audit function submits quarterly reports to the Audit Committee of the Board. The internal audit examines, evaluates and reports on the adequacy and effectiveness of the internal control systems in the company, its compliance with the laid down policies and procedures and ensure compliance with applicable laws and regulations. Based on the report of internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and corrective actions thereon are reviewed, deliberated and presented to the Audit Committee of the Board. Dividend Distribution Policy:

As per Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 the top 1000 listed entities shall formulate a dividend distribution policy. Accordingly, dividend distribution policy has been adopted to set out the parameters and circumstances that will be taken into account by the Board in determining the distribution of dividend to its shareholders and/ or retaining the profit into the business. The policy is available on the website of the Company at the link https://www.shipindia.com/upload/policies/SCI_Dividend_Distribution_Policy2.pdf Role of Vigilance Division in SCI:

SCI has a full-fledged Vigilance Division headed by Chief Vigilance Officer. The Division operates as per the guidelines of the Central Vigilance Commission for Vigilance management in Public Sector Enterprises and is guided further by the instructions issued by the Ministry of Ports, Shipping and Waterways. During the year under review, the Chief Vigilance Officer put in place preventive vigilance initiatives in the business processes thereby striving towards greater transparency and improved ethical & corporate governance standards. There was concerted effort to achieve greater transparency and eliminate systemic weaknesses through use of technology in business processes such as e-payments, Supplier Relationship Management, bill tracking, greater use of GeM portal and online dissemination of important circulars/ guidelines. Vigilance Division interacted with various employees of SCI as well as various stake holders which has helped in understanding the issues from their perspective as well.

Activities of the Vigilance Division carried out in 2024-25

During the year under review, the Vigilance Division carried out the activities under Preventive, Punitive and Participative Vigilance. The important activities carried out in 2024-25 by the Vigilance Division were as follows:

A.    Complaints were handled as per complaint handling policies stipulated in Vigilance Manual issued by the Central Vigilance Commission.

B.    In adherence to the CVC guidelines, random scrutiny of APRs of SCI employees was carried out.

C.    Active monitoring of the implementation of Integrity Pact in SCI has been done.

D.    Vigilance Division has acted as a catalyst in the implementation of preventive vigilance measures such as e-payments, bill tracking systems, transfers of employees posted in sensitive areas in a phased manner etc.

E.    As part of preventive vigilance activities, a surprise inspection on - board SCI’s vessel MT Swarna Sindhu was carried out by the Vigilance Division, on basis of which recommendations for systemic improvements were issued. Subsequently, a second surprise inspection was conducted in TAX cell of F&A Division in which files are being scrutinized.

F.    1) As a part of system improvement measures, Vigilance Division regularly undertake scrutiny of ship repair invoices. Upon such

Scrutiny/observations, Vigilance Division has recommended following preventive vigilance measures which was also accepted and appreciated by CVC through publishing the said recommendations of SCI Vigilance Division in CVC annual report.

I)    Technical superintendent should ensure that the work done certificates which are issued and endorsed by the shipstaff should be specific and corroborate to the type of job carried out on board.

II)    Vendors empaneled with SCI should adhere to the tariff terms and conditions and delayed submission of invoices to Shipping Corporation of India Ltd. (SCI) Head Office should be suitably dealt with.

III)    Work completion certificates issued by the vessels should clearly mention the condition of the machinery after the repair work are carried out and if such post repair trails could not be carried put successfully due to unavoidable circumstances, same should be clearly mentioned in the work completion certificates, providing scope for carrying out inspections of repair work done later when the invoices are being processed.

2) Additionally Selective scrutiny of Dry-docking bills have been done during the year.

G.    A number of training sessions in various thematic areas as a part of precursor campaign period of the Vigilance Awareness Week 2024 were conducted for SCI officers as follows:

1)    Training session on “General awareness on procurement guidelines”

2)    Cyber security training session on “Email Security for Safeguarding your Digital Communication” by external speaker Mr.Amol Suroshe, CDAC.

3)    Training session on benefits of electronic BG and its implementation/ execution process by external speaker Mr. Chetan Lulla, Assistant Vice President, NeSL

4)    Training session on Conduct Rules and Ethics

5)    Training session on e-office software

H.    Following Seminars/Workshops were organized by SCI to increase awareness and participation among vendors

1)    Special Vendor Development Program conducted in association with NSIC NSSHO for MSME- SC/ST Women vendors

2)    Vendor Development Awareness Program and on boarding of new vendors in SCI

3)    A workshop on “Enhancing Interpersonal Skills and Business Communication”

I.    As part of Vigilance Awareness Week, The outreach programmes such as Poster making competition, Slogan writing competition, Quiz competition, Essay - writing competition were conducted throughout India by SCI in two schools in Mumbai namely, Lok Kalyan Public School, Kalyan and PM Shri Kendriya Vidyalaya I, Colaba, Mumbai, Queens of Mission School in Kolkata, P&T Senior Secondary School in New Delhi, Ebenezeer Marcus Higher Secondary School in Chennai and Andaman Law College in Port Blair Wherein various competitions for schoolchildren were conducted with the aim of inculcating ethical behavior among younger generation.

Outreach programmes were also conducted in professional institute viz. Maritime Training Institute (MTI) in Mumbai and Indian Maritime Institute in Kolkata. In MTI, the cadets presented a thought- provoking skit which was based on theme of Vigilance Awareness Week. These activities were geared towards making the youngsters reflect on prevalent corrupt activities which have become a norm in our day to day life and the ways these can be stopped.

J.    In order to spread the awareness about Vigilance machinery among people, an awareness campaign was organized via FM Radio, wherein jingles related to the Vigilance functions and VAW-2024 theme were composed in house and broadcasted on FM Rainbow-Radio during Vigilance Awareness Week and played at various events/places also.

In continuation with this, SCI also has made banners in vernacular languages for wider publicity and to sensitize the general public about the need for transparency and integrity in public governance

K.    Awareness campaign was conducted on-board SCI ships for generating awareness about Vigilance amongst seafarers. The Integrity pledge was also administered onboard the ships and banners were displayed.

During the FY 2024 - 25, 11 nos. registered complaints were processed by the Vigilance Division. As on 31/03/2025, all of these registered complaints have been disposed off as per prescribed procedure.

Cautionary Statement

The statements made in the Management Discussion and Analysis report describing Company’s objectives, projections, estimates and expectations may be “forward looking statements” within the meaning of applicable laws and regulations. Actual results might differ materially from those expressed or implied.

Key Managerial Personnel

Tpfailsof Kpv Maoanprial Pprsooopl as nn 31 03 ?n?F>arp as follows-

Changes in KMP during financial year 2024-25 till the date of report

Shri Atul Ubale, erstwhile Director (B&T) pursuant to his superannuation on 30.06.2025 ceased to be a Director w.e.f. 01.07.2025.

Shri C.I Acharya, erstwhile Whole-Time Director (Finance), who was suspended w.e.f. 07.03.2024, has now been dismissed from service by Competent Authority w.e.f. 05.05.2025.

Shri Manjit Singh Saini, erstwhile Director (P&A) pursuant to his superannuation on 31.01.2025 ceased to be a Director w.e.f. 01.02.2025. Shri N. Subramanya Prakash, erstwhile Chief Financial Officer ceased to be the Chief Financial Officer w.e.f. 01.01.2025 pursuant to his superannuation on 31.01.2025.

Smt. Charusheela Golapalli was appointed as Chief Financial Officer w.e.f. 01.01.2025.

Declaration of Independence

The Company has received Declaration from Independent Directors conforming that they meet the criteria of Independence and have complied with the Code for Independent Directors as prescribed under Companies Act 2013, the SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015 and DPE guidelines.

Composition and Meeting of the Board and its Committee

1.    Board Composition - As on 31.03.2025, the Company is non-compliant with Regulation 17(1)(a) & (b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding the requirement of having at least half of the Board of Directors and appointment of women Independent Director on board as Independent Directors. To this extent, the Company is non-compliant with the relevant provisions of DPE Guidelines on Corporate Governance, 2010 and Companies Act, 2013.

2.    Committees of the Board - The Company has constituted Audit Committee, Corporate Social Responsibility Committee, Nomination and Remuneration Committee, Stakeholders’ Relationship Committee, Risk Management Committee and other Committees for operational convenience in terms of requirements of the Companies Act, 2013 read with rules made thereunder, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance, 2010. Due to completion of tenure of all Independent Directors on SCI Board on 21.11.2024, during the period 22.11.2024 to 10.04.2025 the Composition of various Statutory Committees was non-compliant with the applicable provisions of extant laws. Thereafter, consequent to appointment/re-appointment of 3 Independent Directors on SCI Board, all Statutory Committees were reconstituted in compliance with the applicable provisions of extant laws. The composition and scope of the Board level Committees are provided in the Report on Corporate Governance, which forms part of this report.

3. Number of Meetings of the Board and Committees thereof - The details in respect of the number of Board Meeting and Committee meetings of the Company are set out in the Corporate Governance Report which forms part of the Annual Report.

Performance Evaluation of Board, Committee and Directors

In accordance with applicable provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the evaluation of the Board as a whole, Committees and the Directors was conducted, as per the internally designed evaluation process approved by the Board.

Secretarial Standard

The Company complied with all the applicable Secretarial Standards.

Secretarial Audit

Pursuant to Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the Board had appointed M/s Mehta & Mehta, Practicing Company Secretary firm to conduct Secretarial Audit for the Financial Year 2024-2025.The Annual Secretarial Compliance Report in compliance to Regulation 24 A of SEBI LODR Regulations 2015 and Secretarial Audit Report in Form MR-3 as per Companies Act, 2013 for the financial year 2024-25 is appended to the Director’s report.

The Secretarial Auditor in this report for the year ended 31st March,2025 has brought out that:

During the period under review the Company has complied with the provisions of the Companies Act, 2013 read with Rules made thereunder, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above except;

a)    Regulation 17(1)(a) of SEBI Listing Regulations and Clause 3.1.2 of DPE Guidelines, regarding requirement of having at least 50% of the Board of Directors as Non-executive Directors during the period 22.11.2024 till 31.03.2025.

b)    Regulation 17(1)(b) of SEBI Listing Regulations, Section 149 of the Act and Clause 3.1.4 of DPE Guidelines, regarding requirement of having at least half of the Board of Directors as Independent Directors.

c)    Regulation 17 (1)(a) of SEBI Listing Regulations regarding having an Independent Woman Director on the Board of the Company and Section 149(1) of the Act read with Rule 3 of The Companies (Appointment and Qualifications of Directors) Rules, 2014 regarding requirement of appointing a Woman Director on the Board of the Company during the period 22.11.2024 till 31.03.2025.

d)    Regulation 17(2A) of SEBI Listing Regulations regarding requirement of quorum for meetings of the Board of Directors held during

22.11.2024    till 31.03.2025, due to absence of Independent Directors on the Board of the Company during the said period.

e)    Regulation 20 of SEBI Listing Regulations and Section 178(4) of the Act regarding requirement for Composition of the Stakeholders Relationship Committee viz. absence of Chairperson, adequate number of members and Independent Directors, during the period

22.11.2024    till 31.03.2025, due to absence of Independent Directors on the Board of the Company during the said period.

f)    Regulation 21 of SEBI Listing Regulations regarding requirement for composition of Risk Management Committee viz. absence of adequate number of Independent Directors during the period 22.11.2024 till 31.03.2025, due to absence of Independent Directors on the Board of the Company during the said period.

g)    Regulation 18 of SEBI Listing Regulations, Section 177 of the Act and Clause 4.1.1 and 4.1.2 of DPE Guidelines regarding requirement for composition of the Audit Committee viz. absence of adequate number of Independent Directors and Chairperson of said Committee to be Independent Director during the period 22.11.2024 till 31.03.2025, due to absence of Independent Directors on the Board of the Company during the said period. Additionally, the Audit Committee did not have requisite number of members as stipulated in the aforementioned statutory provisions during the period 22.11.2024 to 28.01.2025

h)    Regulation 19 of SEBI Listing Regulations, Section 178 of the Act and Clause 5.1 of DPE Guidelines regarding requirement for composition of the Nomination & remuneration Committee viz. absence of Chairperson, adequate number of members and Independent Directors during the period 22.11.2024 till 31.03.2025, due to absence of Independent Directors on the Board of the Company during the said period.

In light of the aforesaid the National Stock exchange (“NSE”) and the Bombay Stock Exchange (“BSE”) vide their letter(s)/email(s) dated as stated below in the table, have levied fine(s) for the aforesaid non-compliance as follows:

The Management response on the above observation was as follows:

The Company being Navratna Public Sector Undertaking (PSU), the Competent Authority nominates Directors on Board. The Company through its various communication letters dated 28.05.2024, 04.09.2024, 15.10.2024, 18.11.2024, 22.11.2024, 02.01.2025 and

27.03.2025 had taken up the matter with Competent authority with a request to appoint requisite number of Independent Directors on the Board of the Company. The matter is under active consideration with the Competent Authority.

Auditors Report

The Statutory Auditors have given an unqualified report on the Financial Statement of the Company for the Financial Year 2024-25. Further, there are NIL comment made by Controller and Auditor General of India on the Statement of Standalone and Consolidated Financial for year ended 31.03.2025.

Cost Auditors and Cost Audit report

The Central Government has not prescribed the maintenance of cost records for any of the business activities carried out by the Company under sub-section (1) of section 148 of the Act and the rules framed there under. Hence not applicable.

150th Report of the Committee of Papers Laid on the Table (COPLOT) presented in Rajya Sabha on 31March 2017-Para 24 of the COPLOT recommendations

Please find the following information with respect to Audit Para No.9.2 of CAG Report No.13 of 2019:

Name of Audit Para: Para No.9.2 of CAG Report No.13 of 2019 Brief of the Para:

Payment of Performance Related Pay in violation of DPE guidelines.

SCI paid an amount of Rs. 11.03 crore as Performance Related Pay to employees for the financial year 2014-15. C&AG, however, raised an observation that payment of Performance Related Pay of Rs. 11.03 crore for the year 2014-15 was made in violation of DPE guidelines and that the non-core profits had not been deducted for calculation of PRP.

PRP of year 2014-15 was paid after approval of Nomination and Remuneration Committee. However, matter was again put upto Nomination and Remuneration Committee held on 04.02.2020 specifically to review the position with respect to C&AG observation.

SCI’s stand on C&AG’s unsettled observations is reiterated below:-

a)    Profit on sale of Vessels: Scrapping of vessels is a normal activity in shipping and SCI follows a policy of scrapping at the end of the useful life of the vessel after a techno economic study is done on possible further extension of the life of the vessel. All activities starting from placing of an order, building a ship till the end point of scrapping of the ship at the end of its useful life, fall within the ambit of core business activity of a shipping company.

b)    Income (Compensation) received from rescindment of Contract: Possibility of contract rescindment termination in any business is normal and cannot be ruled out. Hence, rescindment of contract needs to be considered within the purview of normal business activity. In our case compensation/ income received for rescindment of contract is nothing but is in nature of liquidated damaged given by shipyard for their subpar performance and not completing the contract on time. Had the vessel been delivered in time, SCI would have earned normal income from freight/charter hire.

c)    Interest on loans given to Joint Ventures: Formation of Joint venture is a normal business activity. Loans given to Joint Venture Companies is part of well deliberated strategic planning by all JV partners and in line with the MOA

The Nomination & Remuneration Committee deliberated the matter in detail and concluded that all the above mentioned items are core activities of SCI.

Resolution of minutes of above agenda is placed below:

“The Committee thereafter passed the following resolution:

RESOLVED That any business activity which is undertaken to sustain, promote, enhance or grow its primary business is to be considered as “Core Business Activity" of the Company,

RESOLVED Further THAT income from rescindment of contract (liquidated damages), interest earned on loan exposure to the joint venture companies, profit on sale of ships constitute as income arising from core activity

Resolved Further that payments made by the company to the employees as Performance Related Pay for the FY2014-15 based on the above notion, on which taxes have been paid by the employees and further in order to avoid complications arising on account of differential treatment afforded to the same class of employees whether serving or otherwise, should not be recovered,

RESOLVED FURTHER THAT the Company may communicate the above decision of the Committee to the Ministry of Ports, Shipping and Waterways (MoPSW) for further action."

In view of instructions of the Nomination and Remuneration Committee, matter was put to The Ministry of Ports, Shipping and Waterways (MoPSW) on 27.07.2020 seeking guidance on the way forward considering the above resolution of the Nomination & Remuneration Committee.

Reporting Status:

The clarifications on the above unsettled observations were provided by SCI to CAG on the subject of “Core Business Activity” of SCI, which was also concurred by MoPSW vide response dated 13^th January 2021. However, C&AG did not agree to the SCI/MoPSW clarifications and subsequently the matter of PRP payment to SCI Employees for FY 2014-15 was referred by the MoPSW, on advice from C&AG, to Committee on Public Undertakings (COPU) for decision.

The Committee on Public Enterprises (COPU) at their sitting held on 5^th December, 2024 undertook examination of ’Audit Para No. 9.2 of C&AG Report No. 13 of 2019 relating to Payment of Performance Related Pay (PRP) in violation of DPE Guidelines relating to Shipping Corporation of India (SCI) Limited’ for final decision. SCI is in receipt of the corresponding report of COPU which was tabled in the Parliament on 12.08.2025.

The Committee’s (COPU) recommendations, inter alia include the following:

1.    As regards for Interpretation of Core and Non-Core Business Activities in PRP Calculation, the Committee recommend that (i) DPE, in future, should issue clear sector-specific Guidelines clarifying ’core’ and ’non-core’ activities for applicability to the shipping industry not only for PRP calculation but also for other related matters; (ii) Given the non-specificity of the then existing Guidelines and approval by SCI’s Board and concurred by its administrative Ministry on activities forming ’Core Business’, the Committee is also of unanimous opinion that the unsettled observations should be resolved in favor of SCI as a one-time measure; and (iii) Further, the future cases should follow updated DPE Guidelines to prevent any scope of ambiguity.

2.    As regards Final Resolution of Three Unsettled Audit Observations of SCI, the Committee recommended (i) Settling the three remaining audit observations as a one-time resolution. The three unsettled cases may be cleared for settlement, in line with submission made by the SCI before the Committee on sympathetic ground and non-specificity of DPE Guidelines which have already been approved by the Board and its administrative Ministry; and (ii) Also, since the MoPSW had approved the Board’s decision on activities of SCI forming part of ’Core Business’, the Ministry may see for uniform applicability of the same across all CPSUs under its wing.

3.    As regards Bell Curve Approach, the Committee recommend that (i) DPE should issue a clear directive on the Bell Curve model’s applicability in CPSUs, (ii) Settlement of SCI’s PRP Case- considering that SCI’s approach was aimed at employee motivation rather than guideline violation, this specific instance be accepted as a one-time exception and closed. Future PRP distribution in SCI should align with DPE’s clarified stance, once issued.

The detailed Report of COPU is available at website: https://sansad.in Thus, view above, the matter of PRP 2014-15 may be treated as closed.

Corporate Governance

A report on Corporate Governance pursuant to the SEBI (Listing Obligation sand Disclosure Requirements) Regulations, 2015 is attached to this report and forms part of it.

The Annual Report on Corporate Governance 2024 -25 is annexed to Director Reports as Annexure - V Business Responsibility and Sustainability Report:

The Shipping Corporation of India’s Business Responsibility and Sustainability Report (BRSR) for the fiscal year 2024-25 emphasizes its unwavering commitment to Environmental, Social, and Governance (ESG) principles and the strides we have made in addressing sustainability challenges. We see our responsibility to take the lead in sustainable development not only as a duty to the society but also as an opportunity to do well by doing good.

The Annual Report on BRSR 2024 -25 is annexed to Director Reports as Annexure - II ESG Related Challenges:

Over the past year, we have encountered a range of ESG challenges that have guided our focus on responsible business practices. We acknowledge our responsibility in mitigating the impact of shipping operations on the environment and communities. Additionally, ensuring the safety, well-being, and growth of our workforce while fostering transparency, diversity and inclusion both within and outside our organisation continues to be a priority for us.

Processes:

In response to these challenges, we have set ESG processes that align with our commitment to sustainable shipping and fostering a culture of diversity and inclusion within our organization.

1.    Emission Reduction: The Company is compliant with International Maritime Organization (IMO) - MARPOL Convention and has taken appropriate actions impacting Emissions, Ballast Water Treatment, Domestic discharges and Oil Pollution enabling us to contribute to global efforts to combat climate change and promote cleaner oceans.

2.    Waste Management: Waste generated on board during normal operation of the ship is managed as per the vessel-specific garbage management plan and landed ashore at approved reception facilities for further processing. Also, the discharge of oil, solid waste & sewage etc. from its ships is prohibited under MARPOL (International Convention for the Prevention of Pollution from Ships). Most of our vessels comply with Green Passport or equivalent notation. In addition, the Company diligently adheres to the compliance requirements specified in the administration circular concerning the Transport and Handling of hazardous and noxious liquid substances in bulk on Indian-flagged offshore support vessels.

3.    Workforce Development: Multiple training programs with a core focus on the principles of varied topics such as Leadership, Soft Skills, Health & Wellness and Industrial skills were conducted for the workforce ensuring their professional growth and well-being while fostering a diverse and inclusive work culture.

4.    CSR Initiatives: Our community engagement initiatives positively impacted the lives of multiple individuals and many families, focusing on education, healthcare and livelihood opportunities across diverse communities.

5.    Vendor Selection: The Company sources vendors who are maintaining registration under local/ regional laws, are complying with National and International applicable legislations, and are maintaining management systems under ISO 9001 and 14001 or any other equivalent systems wherever applicable. Additionally, suppliers are requested to be in accordance with SOLAS Chapter 11-1/ Reg 35. Furthermore, the sellers should guarantee that no hazardous material identified under MEPC269 (68) and EUSRR has been used in the supplies, no use of plastic for packing material and whenever possible assist the vessel in collecting back the packing material if the vessel so requests.

Flexibility in Placement:

As an organization that values transparency and accountability, we have exercised our flexibility in placing this disclosure within the Annual Report. This ensures that stakeholders have easy access to crucial information about our sustainability efforts and responsible business practices.

Conclusion:

At The Shipping Corporation of India Limited, sustainability is ingrained in our corporate ethos. We view ESG as a foundation for creating long-term value and positively impacting the world around us. Through collaboration and unwavering commitment, we remain steadfast in our pursuit of sustainable shipping solutions.

Directors’ Responsibility Statement:

Pursuant to the requirement under Section 134 of the Companies Act, 2013, with respect to Directors’ Responsibility Statement, it is here by confirmed that :

a)    Applicable standards have been followed in preparation of financial statements.

b)    The directors had selected such 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 and loss of the company for that period;

c)    The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities

d)    The directors had prepared the annual accounts on a going concern basis.

e)    The Company has an internal control system that is adequate and commensurate with the size, scale and complexity of its operations. Internal control framework and Risk Control Matrix (RCM) for various business processes is in place. The internal control systems (including Internal Financial Controls over Financial Reporting) are reviewed on an ongoing basis and necessary changes are carried out to align with the changing business / statutory requirements.

Internal audit is carried out by an independent firm of Chartered Accountants / Cost and Management Accountants on concurrent basis. The scope and authority of the Internal Audit function is defined in the Internal Audit Plan, which is approved by the Audit Committee. To maintain its objectivity and independence, the Internal Audit function submits quarterly reports to the Audit Committee of the Board. The internal audit examines, evaluates and reports on the adequacy and effectiveness of the internal control systems in the company, its compliance with the laid down policies and procedures and ensure compliance with applicable laws and regulations. Based on the report of internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and corrective actions thereon are reviewed, deliberated and presented to the Audit Committee of the Board.

Explanation - For the purposes of this clause, the term “internal financial controls” means the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information;

f)    The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

General Disclosures

Your directors state th at:

(1)    There was no change in the nature of business of the company during the financial year ended 31st March 2025.

(2)    During the year, the details of application made or any proceeding pending under the Insolvency and Bankruptcy Code 2016, along with their status was ’NIL’.

Acknowledgements.

The Directors express their sincere gratitude for the help, guidance and support received from the Government of India, especially the Ministry of Ports, Shipping and Waterways, as well as various State Governments, regulatory and statutory authorities.

Your Directors also wish to express their thanks to the officials in the Ministry of Ports, Shipping and Waterways for the unstinted support

given by them in various matters concerning the Company. Your Directors would also like to convey their thanks to other Ministries, Trade Organizations, and Shippers’ Councils, who have played a vital role in the continued success of your Company. The Directors thank the shareholders, other stakeholders and valued customers for the continued patronage extended by them to your Company.

Last but not the least, your Directors wish to record their deep appreciation for the dedicated and loyal service of your Company’s employees, both afloat and ashore, without whose co-operation and efforts the achievements made by your Company would not have been possible.

1

Ratios of comparative period i.e, 2023-24 are based on previous year figures which have been regrouped and rearranged wherever necessary to confirm to current year presentation of the financial statements as per Schedule III (Division II) to the Companies Act 2013. Ratio - Details of Significant changes and explanation thereto:

1)    Return on Net Worth- Return on Net worth has increased to 10.61 for F.Y. 2024-25 as compared to Return on Net worth of 8.89 for F.Y. 2023-24 due to increase in profit.

2)    Operating Profit Margin- Increase in operating profit from Rs. 74,979 in 2023-24 to Rs. 100,874 in 2024-25 has resulted in increase in Operating profit margin.

3)    Debt Equity Ratio- Debt Equity ratio has reduced due to repayment of debts.

4)    Current Ratio- Current ratio has improved due to increase in current assets.

2

Return on Net Worth is calculated on Net Worth as per Section 2(57) of Companies Act 2013 - Standalone Net Worth is Rs. 7,67,022 lakhs and Consolidated Net worth works out to Rs. 8,23,313 lakhs Accounting treatment

In preparation of financial statements, the Company has followed the Indian Accounting Standards (IND AS) laid down by the Ministry of Corporate Affairs and the relevant provisions of the Companies Act, 2013

A. INDUSTRY STRUCTUREAND DEVELOPMENTS

The overall scenario under which the Shipping industry operated and which impacted the various segments is discussed below.