Great Eastern Shipping Company Ltd
Directors Reports
Your Directors are pleased to present the 75th Annual Report on the business
operations and the Financial Statements of your Company for the financial year ended March
31,2023.
FINANCIAL PERFORMANCE
The financial results of your Company (standalone) for the financial year ended March
31,2023 are presented below:
|
|
(Rs. in crores) |
|
2022-23 |
2021-22 |
Total Revenue |
5096.18 |
2966.39 |
Total Expenses |
2707.59 |
2135.84 |
Profit before tax |
2388.59 |
830.55 |
Less : Tax Expenses |
36.58 |
18.88 |
Profit for the year |
2352.01 |
811.67 |
Retained Earnings |
|
|
Balance at the beginning of the year |
2556.51 |
2135.71 |
Add: |
|
|
- Profit for the year |
2352.01 |
811.67 |
Less: |
|
|
- Other Comprehensive Loss |
4.05 |
12.51 |
-Transferto Tonnage Tax Reserve |
450.00 |
150.00 |
- Dividend paid during the year |
359.77 |
198.40 |
- Tax on Buyback of equity shares |
- |
29.96 |
Balance at the end of the year |
4094.70 |
2556.51 |
The net worth of your Company as on March 31,2023 was Rs.8520.25 crores as compared to
Rs.5571.43 crores for the previous year.
The financial statements have been prepared in accordance with the Indian Accounting
Standards (IndAS) notified under the Companies (Indian Accounting Standards) Rules, 2015.
DIVIDEND
During the year, your Directors declared and paid three interim dividends aggregating
to Rs.19.80 per share. Subsequent to the end of the year, your Directors declared fourth
interim dividend of Rs.9.00 per share. The aggregate outflow on account of the equity
dividend for the year will be Rs.411.15 crores.
Your Directors have not recommended any final dividend for the year under review.
BUYBACK OF EQUITYSHARES
During the previous year, your Directors had announced buyback of the Company's equity
shares from the open market through stock exchanges at a price not exceeding Rs.333 per
share for an aggregate amount not exceeding Rs.225 crores ('Maximum Buyback Size'). The
buyback commenced on January 07, 2022 and closed on July 05, 2022.
The Company bought back 41,99,323 equity shares utilizing Rs.133.23 crore which
represents 59.21% of the Maximum Buyback Size. The highest, lowest and average market
price at which the shares were bought back was Rs.333.00, Rs.301.55 and Rs.315.21 per
share respectively.
Consequent upon the buyback, the paid-up equity share capital of your Company was
reduced from Rs.1,45,95,54,840 comprising of 14,59,55,484 equity shares of Rs.10 each to
Rs.142,75,71,510 comprising of 14,27,57,151 equity shares of Rs.10 each.
MANAGEMENT DISCUSSION AND ANALYSIS
COMPANY PERFORMANCE
In Financial Year 2022-23 (FY23), your Company recorded a total income of Rs.5096.18
crores (Previous Year Rs.2966.39 crores) and earned a PBiDT of Rs.3097.88 crores (Previous
Year Rs.1542.78 crores).
MARKET ANALYSIS
CRUDE TANKER MARKET
Crude tanker earnings were around operating expense (opex) levels for about one and a
half years prior to the start of FY23 as COVID-19 took a toll on oil demand. Earnings
surged in FY23to levels not seen since FY09, mainly clue to trade disruptions caused by
the Russia- Ukraine war.
Following the start of the Russia-Ukraine conflict, many participants in the oil and
tanker markets began to self-sanction even before EU's official ban on Russian crude
imports took full effect on December 05, 2022, reshaping both Russia's exports and EU's
imports during FY23. As a result, Russia's oil exports have seen longer voyages,
particularly flowing to India and China. The EU has increased imports from farther sources
like Middle East and the Atlantic region. This has benefited Suezmax and Aframax tanker
segments, driving higher ton miles and consequently higher freight rates.
Overall seaborne crude trade grew by -10% y/y during FY23, recovering to pre-Covid
levels. Apart from the trade flow disruption caused by the conflict, the following factors
were also influential in creating a strong tanker market during the year:
1. Recovering oil products demand, historically low product nventories and elevated
product cracks enabled steady crude ntake into refineries during FY23. Plowever, refinery
runs were still below pre-pandemic levels.
2. Crude production increased sharply in FY23 led by both OPEC and non-OPEC with
production levels in Q4 FY23 nearing pre-pandemic levels. OPEC+ stuck to its planned
addition of -400 kbpd each month but announced cuts of 2.0 mbpd from November, which in
real terms appears to be a cut of closer to 1.0 mbpd once underproduction is accounted
for.
3. In an attemptto cap prices, the US also released a record -200 mn bbl of crude from
its Strategic Petroleum Reserves. This resulted in higher than normal crude exports from
the country, generating a significant amount of tanker demand.
4. On the other side, crude tanker supply was constrained as global fleet grew by 3.0%
during the year. Consequently, crude tankers witnessed record high freight rates for most
of FY23.
The table below captures spot market earnings for Suezmax and Aframax tankers over the
financial year (in USD/day). While average Suezmax earnings for FY23 are at their highest
since FY2009, Aframax earnings are higher than any year within our data set starting from
FY1991.
|
FY23 |
FY22 |
YOYCHANGE 1 |
Suezmax |
57,481 |
9,079 |
533% |
Aframax |
66,332 |
13,609 |
387% |
PRODUCT TANKER MARKET
As in the case of crude, product tanker earnings also boomed during FY23, and reached
the highest annual earnings within our data set starting from FY1991.
Global products trade also saw healthy growth in FY23 (+5% y/y) and recovered to
pre-pandemic levels. Seaborne products trade flow was marked by incremental growth from
East-of-Suez to West- of-Suez thereby aiding ton-mile growth.
While EU's ban on Russian product imports officially began from February 05, 2023, the
shift in trade patterns began to appear as early as August/September with the EU
increasing its sourcing from Asia and Middle East. Russian products on the other hand are
now making their way to newer destinations in Asia, Middle East, Africa and South America.
Chinese product exports were an additional catalyst to products trade as they jumped
sharply in H2 FY23, led by liberal export quotas and commissioning of two large new
refineries. Middle East also saw refinery capacity increases in Saudi Arabia and Kuwait,
enabling higher exports from the region.
Product tanker fleet supply grew by 1.9% in nominal terms. However, supply tightness in
crude markets relative to products prompted many LR2 owners to switch their vessels from
clean trade to dirty trade, which further curtailed product fleet growth. LR2 product
tankers are Aframax sized, and can therefore work as Aframax crude tankers if that market
is stronger.
The table below captures the market spot earnings of the LR1 and MR product tankers
over the financial year (in USD/day).
|
FY23 |
FY22 |
YOYCHANGE |
MR - Avg. Earnings |
36,418 |
7,597 |
379% |
LR1 MEG-Asia Earnings* |
39,092 |
7,489 |
422% |
* Earnings of LR1s on the Middle East to Far East route
ASSETVALUES
Both crude and product tanker asset prices followed the trend in earnings and increased
sharply during the year, to levels last seen in 2008. Values have increased between
30?/o-100% in FY23 depending upon the age profile and the type of the vessel.
OUTLOOK
Tanker earnings are currently at highly elevated levels implying solid fleet
utilizations and even a slight change in supply-demand dynamics from here can have an
outsized impact on freight rates. China remains the key trigger for oil demand as it takes
steps to emerge from its zero-COVID policy. Oil supply is likely to be lower y/y in
absence of US SPR releases and with OPEC having announced a voluntary cut of 1.2 mbpd from
May-Dec 2023. Non-OPEC suppliers such as US, Brazil, and Canada will drive global
production increases in 2023 and with much of the oil demand growth coming from countries
in the Far East, these incremental barrels will need to travel on longer voyages.
Moreover, uncertainty remains around Russia and its ability to sell its oil with full
sanctions put in place. Circumstances such as end of war and more importantly whether
sanctions on Russia are reversed or not can have profound impact on tanker earnings. It is
also important to be cautious in view of the prevailing macro uncertainties, driven by
higher interest rates and recession in the West, which will be an overhang on oil demand
growth and therefore tanker earnings.
The fleet supply side remains favourable as the orderbook for crude and product tankers
are at about 3% and 6% of the fleet respectively, the lowest levels in at least the last
27 years. At the same time the current fleet is ageing, which coupled with new regulations
(EEX C ), could lead to accelerated scrapping going forward.
LPG CARRIER MARKET
The VLGC freight market, which was reasonably strong in FY22, strengthened further
during FY23. VLGC TCE earnings averaged ~ 96 % higher YoY as compared to FY22.
The main factors driving the VLGC market during FY23 were:
1. Global VLGC trade demand increased ~ 11% YoY driven by increase in LPG exports from
both Middle East & North America.
2. The change in the reservation rules for the Neo - Panamax locks at the Panama Canal
altered trade patterns during the year.
3. The share of US - Asia VLGC trade through the Panama Canal declined on a YoY basis
and more volumes had to take the longer route to Asia via the Cape of Good Hope (CoGH).
4. Additionally, at the end of the year, a higher proportion of ships ballasting
towards US had to come via CoGH in wake of these new reservation rules.
5. On the supply side, the in-water VLGC fleet grew by - 6% YoY during FY23.
However, effective VLGC fleet supply growth was lower clue to congestion at the Panama
Canal, especially during H2 FY-23.
The table below captures the market spot earnings of VLGC type of ships over the
financial year (in USD/day).
|
FY23 |
FY22 |
YOYCHANGE 1 |
VLGC Earnings |
63,072 |
32,125 |
96% |
ASSETVALUES
VLGC asset values increased by ~ 25% during the year driven by the strong freight
market.
OUTLOOK
US LPG exports are expected to continue to grow on the back of sustained production,
low domestic consumption and high inventories. Additionally, while the Middle East LPG
production growth may be limited in the short term clue to OPEC production cuts, the
longterm LPG production outlook continues to be positive on the back of an expected firm
oil price environment.
LPG demand is likely to sustain mainly driven by increase in feedstock demand in the
petrochemical sector. LPG continues to remain price competitive to naphtha. In addition,
scheduled commissioning of new PDH plants in China would support increase in import demand
into Asia. Retail demand growth in India is expected to normalize as most of the new
(free) connections under the PMUY scheme have already been provided and refills may not
happen at the same rate going forward.
Congestion at Panama Canal continues to remain a wild card as new booking rules
prioritize other ship categories over VLGCs, which could lead to congestion during peak
demand months.
On the supply side, VLGC orderbook is quite high at 20% of the fleet, and this could
present headwinds to the freight market and possibly asset values.
DRY BULK CARRIER MARKETS
During FY23, dry bulk freight rates corrected from the multi-year highs seen in FY22 as
the Covid - 19 related port inefficiencies normalized. On a YoY basis, Capesize earnings
fell 55% while earnings for Sub - Capes fell 36%. On an absolute basis also, Sub - Capes
continued to outperform Capesizes during the year.
The key factors driving the dry bulk freight market were:
1. Dry bulk fleet grew by only ~ 3 % YoY. However, effective fleet supply was much
higher as most of the Covid - 19 related congestions seen last year normalized.
2. On the demand side, global dry bulk trade was only marginally positive YoY.
3. Trade demand for individual commodities showed varying trends.
4. Iron ore trade was marginally negative on the back of low steel production.
5. On the plus side, coal trade was up 5% YoY on the back of increased coal import
demand from India and Europe. The Russia - Ukraine war resulted in a dramatic increase in
LNG prices in Europe leading to increased coal demand for power generation.
6. The conflict was also the main reason behind a 3% YoY drop in global grain trade as
Ukraine's grain exports fell 55% YoY. Brazil and Australia made up for some of the lost
Ukrainian grain volumes as exports were up by 15% and 20% respectively.
The table below shows the market spot earnings of the various categories of dry bulk
ships over the financial year (in USD/day):
|
FY 23 |
FY 22 |
YOY CHANGE |
Capesize |
14,760 |
32,642 |
-55% |
Kamsarmax |
17,735 |
27,914 |
-36% |
Supramax |
18,339 |
28,730 |
-36% |
ASSETVALUES
In line with the drop in freight market, dry bulk asset values corrected between 7 -12%
during FY23. However, asset values continue to be at very healthy levels.
OUTLOOK
Outlook for the dry bulk freight market continues to be cautiously positive mainly on
the back of limited fleet supply growth going forward. The current dry bulk orderbook
stands at 6.9% of the fleet, which is close to the lowest seen in the 27 years.
On the demand side, the extent of the recovery of the Chinese economy continues to be
the most critical factor. Coal import demand in India is expected to increase further as
the "El Nino" weather phenomenon may lead to lower hydro electricity generation
in the coming months.
Following are the near-term risks to the dry bulk freight market -
1. Weak property demand in China
2. Continuous steel production cuts in China to prioritize emission controls
3. Continued Russia-Ukraine conflict negatively impacting global grain trade
FLEET SIZE AND CHANGES DURING THE YEAR
As on March 31, 2023, your Company's fleet stood at 43 vessels, comprising 29 tankers
(7 crude carriers, 18 product carriers, 4 LPG carriers) and 14 dry bulk carriers (2
Capesize, 7 Kamsarmax, 5 Supramax) with an average age of 13.34 years aggregating 3.44 mn
dwt.
During the year, your Company sold and delivered to the buyers a Midsize Gas Carrier
'Jag Vijaya' and an Aframax crude oil carrier Jag Lyall'. Subsequent to the end of the
year, your Company contracted to sell an Aframax crude oil carrier Jag Lavanya '.
A detailed Asset Profile section forms part of this Annual Report.
KEY FINANCIAL RATIOS
Conventional return ratios are not appropriate to assess the performance or condition
of your Company, for the following reasons:
1. Avery significant part of the return in shipping comes from the appreciation in the
value of the asset itself. This does not enter the Profit and Loss account except at the
time of sale.
2. In recent years, due to the change in accounting standards, the Company's profits
have been affected very significantly by the movement in exchange rates. This has
generally had the effect of increasing the Company's profits when the rupee appreciates
against the US Dollar and of reducing its profits when the rupee depreciates against the
US Dollar. In reality, the depreciation of the rupee against the US Dollar improves the
profitability of the Company.
Considering the cyclical and highly volatile nature of the shipping industry, the
ability to survive weak markets, and if possible, even take advantage of them, is critical
to success. The Company therefore believes that the following are the key financial ratios
applicable to its business:
1. Gross and Net Debbequitv Ratio - This shows the extent of leverage taken by the
business, both at a gross level and net of the cash and cash equivalents held. Net
debtequity is a standard ratio used in assessing a shipping company's creditworthiness.
There has been a significant improvement in these ratios over the course of FY23, as a
result of the high cash flows, repayment of debt and increase in net worth during the
year.
|
FY 23 |
FY 22 1 |
Gross |
0.30 |
0.52 |
Net |
-0.20 |
0.06 |
2. Cash Debt Service Coverage Ratio - This represents the Company's ability to meet its
debt servicing obligations. It is the sum of the PBIDT plus the cash and cash equivalents
held by the Company divided by the expected debt service payments over the next 12 months.
This ratio stood at 12.82 as of end FY23, versus 5.95 at the end of the previous
financial year. The increase in the ratio is due to (i) increased PBIDT and (ii) increase
in cash and cash equivalents in FY23.
3. Net DebbPBIDT - This shows the number of years earnings it would take to cover the
repayment of the debt which is not covered by the cash and cash equivalents.
The ratio was -0.54 as of end FY23 versus 0.24 as at the end of the previous financial
year. The decrease in the ratio is due to (i) decrease in net debt to a negative number
and (ii) increased PBIDT in FY23.
4. Return on net worth - The ratio was 31.17% for FY23 vs 12.81 % for FY22.
Profitability was higher during the year as a result of sharply higher tanker markets,
which was only partially offset by weaker bulk carrier markets. The reasons for these have
been explained in the above sections. The movement in exchange rates had a higher negative
impact on the P&L in FY23, as against previous year.
RISKS AND CONCERNS
Your Company has carried out a detailed exercise to identify the various risks faced by
your Company and has put in place mitigation, control and monitoring plans for each of the
risks. Risk owners have been identified for each risk, and these risk owners are
responsible for controlling the respective risks. The efficacy of these processes is
monitored on a regular basis by Risk Committees for the different areas in order to make
continuous improvement and is further reviewed by the Risk Management Committee.
The Risk Management Committee currently consists of Mr. Bharat K. Sheth (Chairman),
Mrs. Rita Bhagwati, Dr. Shankar N. Acharya, Mr. Shivshankar Menon, Mr. T. N. Ninan, and
Mr. G. Shivakumar. Mr. Tapas Icot is a permanent invitee to the meetings of the Risk
Management Committee.
The Board of Directors and Audit Committee are regularly briefed on your Company's risk
management process.
The material risks and challenges faced by your Company are as follows:
ECONOMIC RISK:
Shipping is a global business whose performance is closely linked to the state of the
global economy. Therefore, if global economic growth is adversely impacted, it could have
an unfavourable effect on the state of the shipping market.
GEO-POLITICAL RISK:
OPEC nations control more than one third of the world oil supply. Therefore, their
decision on whether to comply with (or extend) crude production targets can have a
material impact on the crude, product and LPG freight markets.
Many of the countries producing and exporting crude oil are politically volatile. Any
change in the political situation in these countries may alter the supply-demand scenario.
This would have a consequential impact on the tanker market.
Issues such as sanctions and wars may also affect shipping markets.
TRADE BARRIERS:
Trade disputes between countries can turn into trade wars with erection of tariff and
non-tariff barriers. The manner in which such barriers are implemented could have
significant impact on trade volumes and routes.
CHINESE ECONOMY:
China has been a major driver of global growth especially for commodities. If the
economy falters or changes its policy towards import of various commodities, the
consequential damage to shipping will be significant.
CHALLENGES FACED BY THE SHIPPING BUSINESS
EARNINGS VOLATILITY:
The shipping industry is a truly global business with a host of issues potentially
impacting the supply demand balance of the industry. This results in tremendous volatility
in freight earnings and asset values.
Your Company attempts to manage that risk in various ways.
If your Company believes that the freight market could weaken, it may enter into Lime
charter contracts ranging from 6 months to 3 years or use freight derivatives to hedge the
risk. Another method of managing risk is by adjusting the mix of assets in the fleet
through sale or purchase of ships.
Your Company also ensures that assets are bought at cheap prices as capital cost is a
major cost component. Your Company hopes to weather the depressed markets better than most
players in the business by having among the lowest fleet break-evens.
Your Company operates ships in different asset classes and different markets. This
ensures that your Company's fortunes are not fully dependent upon a single market.
LIQUIDITY RISK:
The sale and purchase market and time charter markets are not always liquid. Therefore,
there could be times when your Company is not able to position the portfolio in the ideal
manner.
FINANCE RISK:
Your Company's business is predominantly USD denominated as freight rates are
determined in USD and so are ship values. Your Company has its liabilities also
denominated in USD. Any significant movement in currency or interest rates could
meaningfully impact the financials of your Company.
SHIPBOARD PERSONNEL:
Indian officers continue to be in great demand all over the world. Given the
unfavourable taxes on a seafarer sailing on an Indian flagged vessel, it is becoming
increasingly difficult to source officers capable of meeting the modern-day challenges of
worldwide trading.
CYBER RISK:
A new and worrying threat to our business is cyber risk. Your Company is taking steps
to secure its assets and systems from this threat, including by having suitable protection
in place and by constant training to employees on how to avoid such issues.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Your Company has instituted internal financial control systems which are adequate for
the nature of its business and the size of its operations. The policies and procedures
adopted by your Company ensure the orderly and efficient conduct of its business,
including adherence to Company's policies, safeguarding of its assets, prevention and
detection of frauds and errors, accuracy and completeness of the accounting records, and
timely preparation of reliable financial information.
The systems have been well documented and communicated. The systems are tested and
audited from time to time by your Company and internal as well as statutory auditors to
ensure that the systems are reinforced on an ongoing basis. Significant audit observations
and follow up actions thereon are reported to the Audit Committee.
No reportable material weakness or significant deficiencies in the design or operation
of internal financial controls were observed during the year.
The internal audit is carried out by a firm of external Chartered Accountants (Ernst
& Young LLP) and covers all departments. Your Company also has an independent Internal
Audit Department. Apart from facilitating the internal audit by Ernst & Young LLP, the
Internal Audit Department also conducts internal audit as per the scope decided from time
to time.
Both Ernst & Young LLP and Head (Internal Audit) report to the Audit Committee in
their capacity of internal auditors of your Company.
In the beginning of the year, the scope of the internal audit exercise including the
key business processes and selected risk areas to be audited are finalised in consultation
with the Audit Committee. All significant audit observations and follow up actions thereon
are reported to the Audit Committee.
The Audit Committee currently comprises of Mr. T.N. Ninan (Chairman), Mrs. Bhavna
Doshi, Mr. Raju Shukla and Mrs. Rita Bhagwati, all of whom are Independent Directors and
Mr. Berjis Desai, who is a Non-Executive Director on the Board of your Company.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements have been prepared byyour Company in accordance
with the Indian Accounting Standards (Incl AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015. The audited Consolidated Financial Statements together
with Auditors' Report thereon form part of the Annual Report.
The group recorded a consolidated net profit of Rs.2575.01 crores for the year under
review as compared to net profit of Rs.629.68 crores for the previous year. The net worth
of the group as on March 31, 2023 was Rs.10275.36 crores as compared to Rs.8051.30 crores
for the previous year.
SUBSIDIARIES
The statement containing the salient features of the financial statements of your
Company's subsidiaries for the year ended March 31, 2023 is attached along with the
financial statements of your Company.
The report on performance of the subsidiaries is as follows:
GREATSHIP (INDIA) LIMITED, MUMBAI
Greatship (India) Limited (GIL), wholly owned subsidiary of your Company and one of
India's largest offshore oilfield services providers, experienced an improved year of
performance in the backdrop of market positivity. In the financial year 2022-23, GIL has
recorded a total income of Rs. 804.19 crores (previous year Rs.606.25 crores) on a
standalone basis and Rs.938.23 crores (previous year Rs.725.45 crores) on a consolidated
basis. In the current financial year, the company has earned a profit before interest,
depreciation (including impairment) & tax of Rs.316.04 crores (previous year Rs.165.56
crores) and Rs.346.97 crores (previous year Rs.216.80 crores) on a standalone and
consolidated basis, respectively. Your Company's net profit for the current financial year
is Rs.56.32 crores (previous year net loss Rs.149.05 crores) and net profit Rs.33.62
crores (previous year net loss Rs.143.69 crores) on a standalone and consolidated basis,
respectively.
GIL bought a 2007-built AHTSV TC Lam Son' of 80T bollard pull capacity in March 2023
renaming her as 'Greatship Amaira'. With this addition, the vessel fleet of GIL along with
its subsidiaries stands at nineteen vessels which comprises four Platform Supply Vessels
(PSVs), four R-Class Supply Vessels, nine Anchor Handling Tug cum Supply Vessels (AHTSVs)
and two Multi-purpose Platform Supply and Support Vessels (MPSSVs).
GIL has the following four wholly owned subsidiaries, whose performance during the year
is summarized hereunder:
1. Greatship Global Energy Services Pte. Ltd., Singapore (GGES)
GGES has incurred a net profit of USD 0.11 Mn for the current financial year as against
the net loss of USD 0.02 Mn in the previous year. The net profit in the current year has
been on account of the interest received on bank deposits and net loss in the previous
year has been on account of reduction in the interest rates resulting into reduced
interest on bank deposits.
2 Greatship Global Offshore Services Pte. Ltd., Singapore (GGOS)
GGOS owns and operates two Multi-purpose Platform Supply and Support Vessels and one
R-Class Supply Vessel. GGOS has earned a net profit of USD 1.80 Mn for the current
financial year as against a net profit of USD 2.93 Mn in the previous year. The reason for
decline in net profit in the current year is due to provision made for debtors.
3. Greatship (UK) Limited, United Kingdom (GUK)
GUK's net loss for the current financial year amounted to USD 0.02 Mn as against the
net loss of USD 0.32 Mn in the previous year. Higher net loss in the previous year has
been on account of foreign exchange difference which arose on account of the reimbursement
of expenses to parent company.
4. Greatship Oilfield Services Limited, India (GOSL)
During the year under review, GOSL has been exploring possible business opportunities
and has incurred certain expenses resulting into net losses of less than Rs.0.01 crore for
the current financial year (Previous Year: Rs.0.01 crore).
THE GREATSHIP (SINGAPORE) PTE. LTD., SINGAPORE
The Greatship (Singapore) Pte. Ltd. is a wholly owned subsidiary of your Company. The
Greatship (Singapore) Pte. Ltd. does shipping agency business for the ships owned by your
Company. During the year ended March 31, 2023, there were 69 ship calls at Singapore. The
company's loss for the current financial year amounted to S$ 43,948 as against the loss of
S$ 94,640 in the previous year.
THE GREAT EASTERN CHARTERING LLC (FZC), U.A.E.
The Great Eastern Chartering LLC (FZC) is a wholly owned subsidiary of your Company.
During the year ended March 31, 2023, the company made a profit of USD 21.48 Mn (previous
year loss of USD 3.12 Mn). The company has invested in shares of some listed shipping
companies and these shares were valued at USD 26.89 Mn as of March 31,2023.
THE GREAT EASTERN CHARTERING (SINGAPORE) PTE. LTD., SINGAPORE
The Great Eastern Chartering (Singapore) Pte. Ltd. is a wholly owned subsidiary of The
Great Eastern Chartering LLC (FZC), UAE. During the financial year ended March 31,2023,
the company made a profit of USD 3.10 Mn (previous year loss of USD 6.47 Mn). The company
held positions in dry bulk freight futures and fuel oil futures as of March 31,2023.
GREAT EASTERN CSR FOUNDATION, INDIA
Great Eastern CSR Foundation (Foundation) is a wholly owned subsidiary of your Company
which handles the CSR activities of your Company and its subsidiaries. The Foundation
received a total contribution of Rs.10.18 crores from your Company during the year ended
March 31, 2023. The Foundation spent Rs.10.03 crores on CSR activities during the year.
Details of CSR activities carried out by Great Eastern CSR Foundation are set out in
the reports on CSR activities which form part of this Annual Report.
GREAT EASTERN SERVICES LIMITED, INDIA
Great Eastern Services Limited is a wholly owned subsidiary of your Company. The
company has not yet started its commercial operations. The company made a loss of
Rs.41,300 for the year ended March 31, 2023 as compared to a loss of Rs.45,800 for the
year ended March 31,2022.
DEBT FUNDRAISING
During the year, no fresh debt was raised. The gross debtequity ratio as on March
31,2023 was 0.30:1 (including effect of currency swaps on rupee debt was 0.35:1) and the
debtequity ratio net of cash and cash equivalents as on March 31, 2023 was -0.20:1
(including effect of currency swaps on rupee debt was -0.14:1). The Company redeemed
Non-convertible Debentures aggregating to Rs.200 crores during the year and also settled
the swaps relating to those debentures.
HEALTH, SAFETY, ENVIRONMENT AND QUALITY (HSEQ)
The last few years have been very challenging for the shipping industry, as it grappled
with the pandemic and its after effects, followed shortly by geopolitical instability.
Your Company's committed teams on board and ashore ensured the implementation of
risk-based plan helping in minimizing its impact on business operations to a large extent.
Regardless to say the team is still on the job with continued sincerity to deal with ever
evolving conditions.
Your Company believes in ensuring clean seas, reducing generation of waste and avoiding
pollution at sea. This year also, your Company had zero spills to sea. Continuing its
quest to decarbonize the fleet, your Company has placed orders for redesigned efficient
propellers, subscribed to a voyage optimization software which will help in selecting an
optimized route for ships, and continued with other earlier initiatives like fitment of
Mewis Duct, LED lighting and application of high-performance hull coatings. Additionally,
the Company is in process of generating voluntary market carbon credits for the applicable
energy savings devices from Gold Standards and also enrolled selected ships in
Environmental Ship Index (ESI) program.
Your Company cares for its employees and has taken enhanced measures towards their
health and safety. For the benefit of all shore employees, arrangements like continued
work from home option, remote offices located in Mumbai suburbs and TPA Services for
providing larger pool of hospitals pan India closer to their homes are in place. For the
benefit of seafarers, a remote expert counselling service, enhanced pre-employment mental
examination from the experts and a dedicated crew relationship officer for managing their
welfare and to enhance their relationship with the organization are in place.
TRAINING AND ASSESSMENT
Training and Assessment (T&A) department remains commuted to your Company's vision
and mission of manning the fleet with competent and well-trained seafarers. To meet the
ever-evolving demands of the maritime industry, the department is engaged in providing
high-quality training to the Company's seafarers.
It gives us delight to share that your Company's Training Centre has got its
certification revalidated as a Maritime Training Provider (MTP) by Det Norske Veritas
(DNV) following a successful audit with zero non-conformities and no observations. This
achievement reflects your Company's unwavering commitment to providing top- notch training
that aligns with the latest industry and regulatory standards. DNV's report specifically
acknowledges your Company's positive contribution in training, highlighting your quick
adaptation to emerging topics such as EEXI/CII/SEEMP Part III and Bridge Team Resource
Management. This recognition underscores your Company's dedication to staying ahead of the
curve and equipping professionals with the skills and knowledge needed to thrive in the
maritime sector, this will hold your Company in good stead in achieving its goals of
operational excellence and sustainability.
The Company has taken proactive measures to address identified areas for improvement in
the safety and efficiency of its fleet. These efforts have included the development and
delivery of targeted training programs such as Engine Room Best Practices, Blackout
Prevention Workshop, Purifier Operation, Maintenance & Troubleshooting, Bridge
Equipment Maintenance, Safe Anchoring etc. to address incidents and breakdowns experienced
by the vessels. Through these programs, seafarers are provided with the knowledge and
skills necessary to effectively maintain critical equipment and prevent potential safety
hazards.
The T&A department has been diligently conducting shore-based and computer-based
training in line with your Company's training matrix, which is continuously updated to
meet the latest maritime regulatory requirements. Although the pandemic had a profound
mpact on the training landscape, your Company has adapted and resumed in-person training
while retaining the web-based channels that were introduced during the pandemic. This
approach ensures that your Company can derive maximum benefits from both modes of training
and remain prepared for any situation as we move forward. The department has also
implemented a rigorous system of competency assessments for seafarers at every rank,
making it mandatory for both recruitment and promotions. This process ensures that capable
candidates are selected for manning your Company's fleet.
The department has designed & developed a structured on-the- job skill-upgradation
program based on industry best practices that provides practical skills and knowledge
necessary for career progression of seafarers. The trainings and assessments are aligned
with industry best practices such as INTERTANKO Competence Management Guidance.
IT INITIATIVES
Your Company's continued focus on technology initiative which includes new platform
implementation, Robotic Process Automation (RPA), process automation, application
consolidation, Business Continuity Process (BCP) and cybersecurity governance have enabled
your Company to conduct smooth business operations. It has also kept the Company and its
assets safe from cyberthreats and helped in successfully completing major change
initiatives with the implementation of 'Rise with SAP S/4 FIANA' ERP implementation. These
changes have helped the Company.
Implement process improvements bring transparency and enable audit compliance. The
organization's technology enablement and collaboration platform have enabled the Company
to seamlessly nplement a hybrid work policy and ensured zero disruption.
In FY 2022-23, IT department has focused on the following major initiatives:
APPLICATION CONSOLIDATION INITIATIVE
To ensure efficient and effective performance of the business support system, the
Company has partnered with SAP and have gone live with the latest 'Rise with SAP S/4 HANA1
on September 9, 2022, which is a complete Enterprise Resource Tanning (ERP) system which
brings in process improvements and standardization, improved compliance management
capabilities, built-in data intelligence capabilities to support improved decision making.
Continuing on this improvement journey, additional functional developments and integration
with other internal business systems are planned as Phase 2 which will be completed by
March 2024.
BUSINESS CONTINUITY PLAN
Your Company is committed to ensuring that its systems are resilient and ensure high
availability in case of any disaster scenarios. They are designed with a strong business
continuity plan. It enables the IT function to respond quickly to any kind of disruption
and be prepared with a strong recovery and response time to make systems available with
minimum restoration time and data loss. In 2022-23, the Company ensured the continuity of
critical business operations through various technology initiatives, so that business can
run smoothly during or after the crisis.
Technology transformation initiatives like modernized infrastructure, cloud-first
strategy, and setup of a complete Disaster Recovery Site (DR) have helped your Company to
run the business from Work from Home (WFH) without compromising on employee productivity.
Work from Home (WFH): Company has ensured that there are zero cybersecurity incidents,
100% application availability, and provided 24x7 remote support (earlier 9x5 support) to
ships for smooth business operations.
SHIP IT MANAGEMENT
Your Company is piloting new technology solutions for vessel performance optimization,
loT solutions for improved monitoring and management. Additionally, vessels have been
upgraded to support higher bandwidth for real-time data transfer, data utilization and to
have improved user experience in terms of uninterrupted connectivity. These will enable
remote inspections and monitoring cadingto improved operational control and cost
optimization. The improved connectivity will also help seafarers stay more connected with
their families when they are sailing.
BUSINESS INTELLIGENCE
Your Company is committed to improving decision-making by enhancing data visibility and
accessibility. To this end, the organization has initiated efforts to define
enterprise-level data and analytics requirements for the business. Additionally, the
Company is putting in place the necessary Bl (Business Intelligence) and analytics
systems, along with scalable architectures, to support the organization's growing data
needs. Through these endeavors, the Company aims to improve data management and analysis,
leading to positive business outcomes and competitive advantage.
CYBER RESILIENCE
Cybersecurity has been and will continue to be a top priority in the international
maritime sector. We have strengthened the cybersecurity posture for ships and shore to
protect the integrity of the organization's information and IT assets.
Governance through "Sea Hawk" an Al & ML-based security application has
helped the team to protect the organization from any advanced level cyber threat.
Additional cyber security transformation Initiatives has been taken up to benchmark and
improve our cyber resilience. Industry-leading technology solutions have been implemented
for end-point protection and data leakage prevention. Additionally, the Company has
strengthened the underlying infrastructure components and improved their overall security
posture.
FUTURE ROADMAP
Your Company is committed for continuing technology modernization initiatives and has a
well-defined IT Strategy and Digital Transformation roadmap which is being implemented. As
part of this roadmap, the Company is undertaking process and technology transformation
initiatives across all business functions.
The Company is planning to take up initiatives to adopt industry best practices in
shipping across all functions. Among the Company's key focus areas for the coming year
will be the stabilization of the SAP ERP system, process automation leading to operational
efficiency Improvements in operating functions, development of strategic and analytical
dashboards to support decision making, adoption of loT and RPA to automate repetitive
tasks.
HUMAN RESOURCES
After two years of Work From Home, the Company resumed office during April 2022,
by adopting a hybrid work model. This model enabled the employees to have adequate
flexibility and work-life balance. The organization also tied up with co-working spaces in
three locations in Mumbai lowering the to-and-fro commute time for employees.
During the year, the Company resumed in-person training sessions while continuing
online learning arrangements with various platforms like Harappa and Linkedln Learning.
Programs on influence, fundamentals of leadership, POSH, ethics and governance were the
focal themes.
The Company has witnessed a steady improvement in employee engagement scores during the
last three years. The scores have moved up from 68 to 79 during this period.
Employee retention stood healthy at 95%.
Total number of shore staff and ship board personnel was 253 and 1,897 respectively at
the end of the year.
GREAT EASTERN INSTITUTE OF MARITIME STUDIES (GEIMS)
Whilst GEIMS has overcome all challenges posed by COVID and the numerous disruptions in
the training schedules and delayed course completions of the batches clue to partial or
total lockdowns, it recently re-opened the college finally for physical lectures in 2022,
as per the Government and Director General of Shipping Office directives. All these
challenges were successfully overcome by taking additional classes when possible and the
Institute is now back to full strength with all batches in the campus. Despite all the
disruptions to normal life, the selection, recruitment and training programs have
continued unhindered; all faculty and staff have toiled tirelessly to keep to the schedule
and maintain quality in all the defined processes successfully.
During FY 2022-23, a total of 293 cadets passed out from the Nautical, Marine
Engineering, Electrical Technology and GP Rating courses. The Institute also admitted 435
new cadets during the year in these 4 courses.
The Institute was audited and certified for Quality Management System ISO 9001:2015 by
Indian Register of Shipping. An impressive result of 95.1% during the Comprehensive
Inspection Program (CIP) Audit of Director General of Shipping was obtained, thus enabling
the Institute to maintain the "OUTSTANDING" rating it has held since inception.
This was a very detailed audit as the institute had to change the Classification Society
to Det Norske Veritas and hence was equivalent to an Initial Audit.
The Institute was also awarded the 'BestTraining Institute Award' by National Maritime
Day Celebrations Committee in April 2022 as part of the National Maritime Day Celebrations
for the 2nd consecutive year. The award is recognition enough to show that the
Institute is indeed one of the best managed and operated Maritime Institutes in India.
At the recently concluded Board of Director's meeting in GEIMS campus, the Institute as
also the personnel were greatly appreciated by the Directors. Many new innovations and
upgrading work has been consistently carried out for ensuring the Institute remains in
line with the latest techniques of training and educating the trainees passing out from
the Institute.
CORPORATE SOCIAL RESPONSIBILITY
Your Company has always been conscious of its role as a good corporate citizen and
strives to fulfil this role by running its business with utmost care for the environment
and all the stakeholders. Your Company looks at Corporate Social Responsibility (CSR)
activities as significant tool to contribute to the society.
The Board of Directors of your Company has constituted a committee of Directors, known
as the Corporate Social Responsibility Committee, currently comprising of Mrs. Rita
Bhagwati (Chairman), Dr. Shankar N. Acharya and Mr. Bharat K. Sheth to steer its CSR
activities.
Copy of the Corporate Social Responsibility Policy of your Company as recommended by
the CSR Committee and approved by the Board is enclosed as 'Annexure A'. The CSR Policy is
also available on the website of your Company: www.greatship.com.
The CSR Policy is implemented by your Company through Great Eastern CSR Foundation, a
wholly owned subsidiary of your Company, specifically set up for the purpose.
During FY 2022-23, Rs.10.18 crores were contributed by your Company to Great Eastern
CSR Foundation for undertaking CSR activities as per the provisions of Section 135 of the
Companies Act, 2013.
The Annual Report on CSR activities is enclosed herewith as Annexure B'.
DIRECTORS
Following appointments / re-appointments were approved by the members at their Annual
General Meeting held onjuly 29, 2022:
Re-appointment of Mr. Tapas Icot as a Director of the Company, liable to retire
by rotation.
Appointment of Mr. Shivshankar Menon as an Independent Director of the Company
for a term of 3 years w.e.f. May 06, 2022.
Appointment of Mr. T.N. Ninan as an Independent Director of the Company for a
term of 3 years w.e.f. May 06, 2022.
Appointment of Mr. Uday Shankar as an Independent Director of the Company for a
term of 3 years w.e.f. May 06, 2022.
Re-appointment of Mr. Bharat K. Sheth as 'Deputy Chairman & Managing
Director* for a term of 3 years w.e.f. April 01,2023.
Re-appointment of Mr. G. Shivakumar as 'Executive Director' for a term of 3
years w.e.f. November 14, 2022.
Mr. Cyrus Guzder and Mr. Vineet Nayyar ceased to be Directors on the Board of the
Company upon completion of their second term with effect from September 25,2022.
Your Directors place on record their appreciation for the valuable guidance and support
extended by Mr. Cyrus Guzder and Mr. Vineet Nayyar during their tenure as Independent
Directors of the Company.
The Board of Directors, at its meeting held on May 12, 2023, appointed Mrs. Bhavna
Doshi as Additional Director and Independent Director of the Company for a term of 3 years
w.e.f. May 12, 2023. She brings with her years of rich experience and knowledge of working
with various companies, which will be of immense benefit to your Company.
Mrs. Bhavna Doshi, being Additional Director, ceases to be the Director of the Company
on the date of the ensuing Annual General Meeting and is required to be appointed by the
members. Notice under Section 160 of the Companies Act, 2013 has been received in respect
of her appointment as an Independent Director of the Company.
Mr. Berjis Desai shall retire by rotation atthe ensuing Annual Genera Meeting and being
eligible, offers himself for re-appointment.
Appointment of Mrs. Bhavna Doshi as an'Independent Director'and re-appointment of Mr.
Berjis Desai as a 'Director retiring by rotation' require your approval at the ensuing
Annual General Meeting.
Necessary resolutions for their appointment/ re-appointment have been included in the
Notice convening the ensuing Annual Genera Meeting.
As per the provisions of the Companies Act, 2013, Independent Directors shall not be
liable to retire by rotation. The Independent Directors of your Company have given the
certificate of independence to your Company stating that they meet the criteria of
independence as mentioned under Section 149(6) of the Companies Act, 2013 and under
Regulation 16(1 )(b) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. In the opinion of the Board, all the Independent Directors are persons
of integrity and possess relevant expertise and experience to effectively discharge their
duties as Independent Directors of the Company.
The policies on Director's appointment and remuneration including criteria for
determining qualifications, positive attributes, independence of Director and also
remuneration for key managerial personnel and other employees, are enclosed herewith as
'Annexure C' and 'Annexure D' respectively.
The details of remuneration as required to be disclosed pursuant to the Companies
(Appointment and Remuneration of Managers Personnel) Rules, 2014 are enclosed as 'Annexure
E'.
During the year, Mr. Bharat K. Sheth, who is also the Non-executive Chairman of
Greatship (India) Ltd. (GIL), a wholly owned subsidiary of the Company, was in receipt of
remuneration of Rs. 9,00,000/- for FY 2021-22 from GIL. The Board of Directors of GIL have
approved payment of remuneration of Rs. 54,00,000/- for FY 2022-23 to Mr. Bharat K. Sheth,
subject to GIL's shareholders' approval.
BOARD MEETINGS
During the year, 5 meetings of the Board were held. The details of Board meetings as
well as Committee meetings are provided in the Corporate Governance Report.
BOARD EVALUATION
With a view to bring in objectivity and independence in the process of performance
evaluation of the Board, its Committees and individual Directors, your Company engaged the
services of Talentonic HR Solutions Private Limited ('Talentonic') to assist in conducting
performance evaluation for FY 2022-23.
Talentonic conducted the assessment in line with the regulatory requirements and
leading practices in the market and submitted its Board Evaluation Reports.They made a
comprehensive presentation of their findings to the Board. The annual performance
evaluation
of the Board, its committees and all the Directors individually were done based on the
same.
Pursuant to the provisions of the Companies Act, 2013, a separate meeting of
Independent Directors reviewed performance of your Company, Board as a whole and
Non-Independent Directors (including Chairman) of your Company. The Board of Directors
reviewed the performance of Independent Directors and Committees of the Board. Nomination
and Remuneration Committee also reviewed performance of your Company and every Director.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement of Section 134(3) of the Companies Act, 2013, the Board of
Directors hereby state that:
(a) in the preparation of the annual accounts, the applicable accounting standards had
been followed along with proper explanation relating to material departures;
(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 companyforthat 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; and
(e) the directors, in the case of a listed company, had laid down internal financial
controls to be followed by the company and that such internal financial controls are
adequate and were operating effectively.
(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.
CORPORATE GOVERNANCE
Maintaining high standards of Corporate Governance has been fundamental to the business
of your Company since its inception. A separate report on Corporate Governance is provided
together with a certificate from the practicing Company Secretary regarding compliance of
conditions of Corporate Governance as stipulated under the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
Your Company has formally adopted the 'National Guidelines on Responsible Business
Conduct' ('NGRBC') issued by Ministry of Corporate Affairs. The applicable aspects of the
principles of NGRBC have been suitably incorporated in the internal policy framework and
operating processes followed by your Company.
The Business Responsibility and Sustainability Report as per the format specified by
Securities & Exchange Board of India forms part of this Annual Report.
A separate section on ESG (Environment, Social & Governance) also forms part of
this Annual Report .
Copy of Annual Return as required under Section 92(3) of the Companies Act, 2013 has
been placed at the website of your Company: www.greatship.com
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
With a view to create safe workplace, your Company has formulated and implemented
Sexual Harassment (Prevention, Prohibition and Redressal) Policy in accordance with the
requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013. For the purpose of handling and addressing complaints regarding
sexual harassment, your Company has constituted Internal Complaint Committee(s) with an
external lady representative (who has the requisite experience in this area) as a member
of the Committee. To build awareness in this area, your Company also conducts awareness
programmes within the organisation.
During the year, one complaint with allegations of sexual harassment was received by
the Company. The complaint was investigated by the Internal Committee. Based on the
Internal Committee's recommendations appropriate action was taken and the case was
concluded.
VIGIL MECHANISM
Your Company has established a vigil mechanism (Whistle Blower Policy) for Directors
and employees to report genuine concerns. The Whistle Blower Policy provides for adequate
safeguards against victimisation of persons who use such mechanism and make provision for
direct access to the Chairperson of the Audit Committee in appropriate or exceptional
cases.
A copy of the Whistle Blower Policy is available on the website of your Company:
www.greatship.com
RELATED PARTY TRANSACTIONS
Your Company has formulated a policy on dealing with Related Party Transactions, a copy
of which is available on the website of your Company: www.greatship.com
The particulars of contracts or arrangements with related parties in Form AOC 2 is
annexed herewith as Annexure F.
All the related party transactions have been entered into by your Company in the
ordinary course of business and on arm's length basis.
DIVIDEND DISTRIBUTION POLICY
The Dividend Distribution Policy of your Company is available on the website of your
Company: www.greatship.com
ENERGY CONSERVATION AND TECHNOLOGY ABSORPTION
CONSERVATION OF ENERGY
In order to align with IMO's Green House Gas (GHG) emission reduction targets and to
prepare for a low carbon future, your Company has been undertaking various initiatives
about enhancing energy efficiency in its business operations. The same have also been
described in detail in the ESG Report, which forms part of this Annual Report.
ENERGY SAVING TECHNOLOGIES
In its efforts to reduce emissions, your Company has implemented following energy
efficiency projects on various vessels during this financial year. Few of these will help
in complying with new IMO MARPOL Annex VI regulations - EEXI & Cll requirements on
emission reduction:
Mewis duct - 05 vessels. It's a device which improves the flow of water on to
propeller and thus its efficiency. It also helps in reduction of underwater noise.
LED lighting - 05 vessels. LED lights are energy efficient as compared to
traditional lights such as fluorescent, halogen and incandescent lights.
High performance paints - For a typical ship loss of energy through hull
resistance is around 30% and this increases with growth of hull roughness due to
biofouling. To minimize growth of biofouling, your Company has applied superior
anti-fouling coatings on 02 vessels during their respective dry dockings in this financial
year.
Redesign efficient Propellers - Placed order for 04 LR Tankers. These new
propellers will befitted in their upcoming drydocking in FY24& FY25.
Voyage optimization software - 13 ships. It will help in selecting an optimized
route for ships thereby reducing emissions.
COMPLIANCE WITH IMO DCS AND EU MRV REGULATIONS
MO DCS Data for the calendar year 2022 has been submitted to Recognized Organization by
the clue date for their review. A similar exercise for corresponding requirement of
European Union, but applicable to vessels which have made commercial voyages to or from EU
for the calendar year 2022, has been completed.
QUANTIFICATION AND REPORTING OF GHG EMISSION
Since FY 2015-15, your Company has captured and quantified GHG emissions from its
business operations in a transparent and standardized manner for the information of
stakeholders of your Company on a voluntary basis. The GHG emission quantification and
reporting has been clone taking into account:
ISO 14054-1 (2005) Greenhouse gases - Part 1: Specification with guidance at the
organization level for quantification and reporting of greenhouse gas emissions and
removals, and
The Greenhouse Gas Protocol - A Corporate Accounting and Reporting Standard
(Revised edition) published by World Business Council for Sustainable Development and
World Resources Institute.
COMPLIANCE WITH ENERGY EFFICIENCY EXISTING SHIP INDEX (EEXI) AND CARBON INTENSITY
INDICATOR (CM)
Your Company has performed EEXI calculations for all vessels with the support of
Classification Societies and plan to fully comply through a combination of Engine Power
Limitation (EPL) and other energy savings devices like MEWIS duct etc. Your Company
intends to complete the whole process well before the clue date.
Your Company is tracking and monitoring Carbon Intensity Indicator (CM) ratings for all
its vessels. This will help the organization in timely identifying the vessels which
require improvement and appropriate actions can be planned accordingly.
AUDITORS
Pursuant to the provisions of Section 139 of Companies Act, 2013, Deloitte Haskins
& Sells LLP were re-appointed as the Statutory Auditors of your Company at the Annual
General Meeting held on July 29, 2022, to hold office till the conclusion of the 79th
Annual General Meetingto be held in calendar year 2027.
The report given by the Auditors on the financial statements of your Company is part of
this Report. There has been no qualification, adverse remark of disclaimer given by the
Auditors in their Report.
SECRETARIAL AUDITORS
Pursuant to the provisions of Section 204 of the Companies Act, 2013, your Company
appointed M/s. Mehta & Mehta, Company Secretaries to undertake the Secretarial Audit
of your Company (or the financial year ended March 31, 2023. The Secretarial Audit Report
of your Company is annexed herewith as Annexure Gt.
The Secretarial Audit Report of Greatship (India) Limited, the material unlisted Indian
subsidiary of your Company, is annexed herewith as 'Annexure H'.
FOREIGN EXCHANGE EARNINGS AND OUTGO
The details of Foreign Exchange Earnings and Outgo are as follows:
|
Rs. in crores) |
a) Foreign Exchange earned on account of freight, charter hire
earnings, sales proceeds of ships, etc. |
3764.76 |
b) Foreign Exchange used including operating expenses, capital
repayment, clown payments for acquisition of ships (net of loan), interest payment, etc. |
3278.56 |
OTHER DISCLOSURES
Mr.Jayesh M. Trivedi, who currently holds the position of' President (Seel. &
Legal) and Company Secretaiy' of the Company, has decided to relinquish his position as
the 'Company Secretary' with effect from July 01,2023. He will, however, continue to work
with the Company as 'President'.
The Board of Directors, at its meeting held on May 12, 2023, appointed Mr. Anand Punde,
who is currently working with the Company as 'Deputy General Manager (Seel. & Legal)',
as the 'Company Secretary' of the Company with effect from July 1,2023.
Particulars of Loans, Guarantees and Investments covered under the provisions of
Section 186 of the Companies Act, 2013 are given in the notes to the financial statements.
There are no significant and material orders passed by the regulators or courts or
tribunals impacting the going concern status and the Company's operations in future.
Maintenance of cost records as specified by the Central Government under sub-section
(1) of section 148 of the Companies Act, 2013 is not required by your Company.
Neither any application was made, nor any proceeding was pending under the Insolvency
and Bankruptcy Code, 2016 in respect of your Company during or at the end of the financial
year 2022-23.
The disclosures on valuation of assets as required under Rule 8(5) (xii) of the
Companies (Accounts) Rules, 2014 are not applicable.
APPRECIATION
Your Directors express their sincere thanks to all customers, charterers, vendors,
investors, shareholders, shipping agents, bankers, insurance companies, protection and
indemnity clubs, consultants and advisors for their continued support throughout the year.
Your Directors also sincerely acknowledge the significant contributions made by all the
employees through their dedicated services to your Company. Your Directors look forward to
their continued support.
For and on behalf of the Board of Directors
K.M. Sheth
Chairman (DIN: 00022079)
Mumbai, May 12, 2023.