7 th nna report 219 22 the shipping corporation of india ...m/s haribhakti & co. llp *m/s g.d. apte...

170th Annual Report 2019 - 2020 The Shipping Corporation of India Limited


VISIONTo emerge as a team of inspired performers in the field of Maritime Logistics, Offshore, Port and Terminal Management, serving Indian and global trade.

MISSIONTo serve India’s overseas and coastal seaborne trade as its primary flag carrier, and be an important player in the field of global maritime logistics with focus on: Maintaining its ‘Numero Uno’ position in Indian Shipping. Establishing a major global presence in energy-related, dry bulk and niche container shipping

markets. Evolving reliable and cost-effective business models to exploit emerging opportunities in

maritime and allied industries. Achieving excellence in Quality, Occupational Health, Safety and Environmental Management

Systems.OBJECTIVES

The Shipping Corporation of India Ltd. works to fulfill its objectives as mentioned below:To provide its clientele safe, environmentally sustainable, reliable, efficient and qualityshippingservices,complyingwithalllegalandotherrequirements.

Tobeanoptimallyprofitable,viable,ethicalandsociallyresponsiblecommercialorganizationcontributing to the national economy by securing a reasonable return on capital and serving the nation’s needs.

Toownoracquireanadequate,welldesignedandefficientfleettocatertothedemandofglobal maritime trade through options like leasing, demise charter, joint ventures and other innovativefinancialmeasures.

To be a major player in India’s offshore and other marine activities and to continue to explore opportunitiesfordiversificationforsteadygrowthoftheCompany.

Toenhancecompetencyandprofessionalismamongitsfleetandshorepersonnelthrougheffective and dynamic Human Resource Management.

Tocontinuallyimproveitsefficiencyinprocessandtechnology,adoptingvariousmeasuresincluding E-governance and optimum use of Information Technology.

TominimizerisksandenvironmentalimpactsforachievingSafety,OccupationalHealthandEnvironmental performance.

2 70th Annual Report 2019 - 2020 The Shipping Corporation of India Limited

CORPORATE INFORMATION 3

CHAIRPERSON’S MESSAGE 4

BOARD OF DIRECTORS 9

EXECUTIVE DIRECTOR AND GENERAL MANAGERS 15

DECADE AT A GLANCE 16

GRAPHS 17

SALIENT STATISTICS 2019-20 19

NOTICE OF MEETING 20

DIRECTORS’ REPORT 31

REPORT ON CORPORATE SOCIAL RESPONSIBILITY 2019-20 64

BUSINESS RESPONSIBILITY REPORT FOR THE YEAR ENDED 31ST MARCH, 2020 66

FORM MGT - 9 EXTRACT OF ANNUAL RETURN 74

FORM AOC - 1 STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIAR-IES / ASSOCIATE COMPANIES / JOINT VENTURES 85

FORM AOC- 2 PARTICULARS OF CONTRACTS/ ARRANGEMENTS ENTERED INTO WITH RELATED PARTIES 87

FORM MR-3 SECRETARIAL AUDIT REPORT FOR THE YEAR ENDED 31ST MARCH, 2020 88

REPORT OF THE DIRECTORS ON CORPORATE GOVERNANCE 91

INDEPENDENT AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE 109

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA 110

STANDALONE FINANCIAL STATEMENTS •INDEPENDENTAUDITORS’REPORT•ANNEXURESTOTHEINDEPENDENTAUDITORS’REPORT•STANDALONEBALANCESHEETASON31STMARCH2020•STANDALONESTATEMENTOFPROFIT&LOSSFORTHEYEARENDED31STMARCH2020•STANDALONECASHFLOWSTATEMENT•STANDALONESTATEMENTOFCHANGESINEQUITY•SIGNIFICANTACCOUNTINGPOLICIES&CRITICALACCOUNTINGESTIMATESANDJUDGEMENTS•NOTESTOFINANCIALSTATEMENTSFORTHEYEARENDED31STMARCH2020

112117124126127129130140

CONSOLIDATED FINANCIAL STATEMENTS • INDEPENDENTAUDITORS’REPORT•ANNEXURESTOTHEINDEPENDENTAUDITORS’REPORT•CONSOLIDATEDBALANCESHEETASON31STMARCH2020•CONSOLIDATEDSTATEMENTOFPROFIT&LOSSFORTHEYEARENDED31STMARCH2020•CONSOLIDATEDCASHFLOWSTATEMENT•CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY•SIGNIFICANTACCOUNTINGPOLICIES&CRITICALACCOUNTINGESTIMATESANDJUDGEMENTS•NOTESTOCONSOLIDATEDFINANCIALSTATEMENTSFORTHEYEARENDED31STMARCH2020

187193198200201203204214

GLOSSARY 267

IRQS CERTIFICATE OF APPROVAL 272

INDEX

2


CORPORATE INFORMATION

BOARD OF DIRECTORS#

Smt. H. K. Joshi Chairperson & Managing Director & Director (Finance) Addl.charge

Shri Sanjay Kumar Government Director

Shri Satinder Pal Singh Government Director

Dr. Gautam Sinha Independent Director

Shri Raj Kishore Tewari Independent Director

Dr. P. Kanagasabapathi Independent Director

Shri Rajesh Sood Director (Technical & Offshore Services)

Smt Sangeeta Sharma Director (Liner & Passenger Services)

Shri Surinder Pal Singh Jaggi Director (Personnel & Administration)

Shri Vijay Tulshiramji Jadhao Independent Director

CA Mavjibhai B Sorathia Independent Director

Shri Pramod Kumar Panda Independent Director

Shri Atul Ubale Director (Bulk Carrier & Tanker)# Except for first three names, all other names are in the order of date of appointment.

Shri Dipankar Haldar Executive Director (Legal Affairs) and Company Secretary

Shri Lawrence C Serrao Chief Financial Officer w.e.f 05.02.2020

STATUTORY AUDITORS* M/s V. Sankar Aiyar & Co. M/s Haribhakti & Co. LLP *M/s G.D. Apte & Co. and M/s. A. Bafna & Co. had conducted limited review audit of the Company for quarter ended June 2019. *M/s Haribhakti & Co. LLP and M/s V. Sankar Aiyar were appointed as Statutory Auditors of the Company for FY 2019-2020 and had also conducted limited review audit of the Company for quarter ended June 2020. For Financial Year 2020-21, M/s. CHOKSHI & CHOKSHI LLP and M/s. V SANKAR AIYAR & Co. are appointed as Statutory Auditors.

SECRETARIAL AUDITOR Shri Upendra Shukla, Practicing Company Secretary

REGISTERED OFFICE Shipping House, 245, Madame Cama Road, Mumbai 400 021.

REGISTRAR & TRANSFER AGENTS M/s. Bigshare Services Pvt. Ltd. 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai 400 059. Maharashtra.

3

4 70th Annual Report 2019 - 2020 The Shipping Corporation of India Limited4

Chairperson’s Message

DearShareholders,LadiesandGentlemen,

OnbehalfoftheBoardofDirectorsofTheShippingCorporationofIndiaLtd.,Iampleasedtoplacebeforeyou,ouresteemedshareholders,the70thAnnualReportofyourCompanyforthefinancialyear2019-2020.ThereportenumeratesexhaustivelyyourCompany’sperformanceforthefinancialyearended31stMarch2020.Itakethisopportunity,however,totouchuponsalientfeaturesofyourCompany’sachievementsduringthelastfinancialyear.

Whenthegoinggetstough,thetoughgetgoingandtheclichéseemsmorethanapttodescribeyourCompanyatthisjuncturewhichhasdisplayed immense resilience, fortitude and dexterity in its operations, systems and functions during the crisis which struck us towards the end of the year. Operations across all the sectors were impacted by the outbreak of the pandemic and its cascading effects were ably sustainedbyyourCompanyduringthesetryingtimesinthebackdropofawell-documented“BusinessContinuityPlan”preparedinadvancetomeet theeventualityof the lockdown imposed from24/3.Theconsequent restrictiveworkscenariobrought in itswakemultifacetedproblemswhichyourcompanybracedwellowingtoitspreparednessforsuchaneventuality.Wepre-empteddisruptionstotheoperationsintwophases,initially,byenvisioningthemodalitiesofanalternatePlantodealwithananticipatedconfinementwhichseemedinevitableyetunprecedented,andlater,focusingonexecutingthePlanandrealigningitaswarrantedtotheever-changingrequirements.ActionsweretakentoinstitutetheWorkFromHomemechanismandimplementingShipboardOutbreakManagementPlanandthesituationonboardallownedandmannedvesselswascloselymonitoredbytheFleetandOperationsDivisions.ThechallengeswereformidablebutanevolvingPlanheldusingoodsteadandtheywereovercome.AnditmakesusproudtoconveythatyourCompanycontinuedtoensuretransportationofessentialsuppliesanduninterruptedtradeflowrequirementsdespitetheconstraints.

570th Annual Report 2019 - 2020 The Shipping Corporation of India Limited 5

Impact of the PandemicThe shipping industry had already been contending with the global slowdown and trade wars during the year and an expectation of a recovery of world economy seems remote now due to the pandemic which has caused enormous disruption impacting all sectors and walks of life, the effects of which would keep transcending across business operations and segments in various ways and at different points in time which cannot be predicted with any degree of certainty.

Maritime sector has been affected severely and themost significant impact has been feltwith respect to the crewchange,which theInternationalMaritimeOrganisation(IMO)atthegloballevelandtheDGShippingonthenationalfront,continuetoregulateandfacilitatewithissuanceofvariousSOPsandordersforcontrolledcrewchangetobringinasmuchexpediencyasisfeasibleconsideringthedynamicsofthepandemic.Theincreasedcostofsuchcrewchangeshasnotdeterredthecompanyinputtingtheseafarersfirstandensuringtheirwelfare.Crewchangeshavebeenaddressedwith‘SafetyFirst”andensuringaqualitativecrewchangewithduecare,compassion,ensuringthattheseafarerreachedhishomehealthyandsafe.Duecarewasalsotakentoensurethattheonsigningcrewwasinfectionfreesothatfleetoperationswerenotdisrupted.YourCompanyhasadheredtostrictpreventivemeasuresandtillthetimeofmywritingthismessage,yourentireownedfleetremainsCOVIDfree.

As the lockdown progressed, innumerable challenges kept surfacing which were met with due adroitness, empathy and expertise which were theoutcomeofsheerdiligenceandtenacitythatyourCompany’semployeesexhibited.Healthconcernsoftheemployees,shoreandafloat,were accorded priority and while hygiene kept getting upgraded on one hand, advisories were issued from time to time, on the other, for their safetyinlinewiththeguidelinesissuedbytheMinistryofHomeAffairsandtheDGShippingfortheshoreandfleet,respectively,includingtheinstallationofAarogyaSetuApponthemobilesandonlinestatusdeclarationformsfortheemployeeswhoattendedofficeduringexigenciesduringlockdownandwhentheUnlockPhasecommenced.MeasurescontinuetobetakenandinteractionsbetweentheManagementandtheemployees continue to share mutual concerns and promote a positive environment and enthusiasm during these challenging times.

OperationsShipping markets in 2019-2020Shippingplaysavitalroleinfacilitatingglobaltrade,withabout85%ofalltrademovedbysea.InCalendaryear2019seabornetradelevelsgrewby1%toreach11.9bntonnes,almostdoublethatattheturnofthemillennium.Inadditiontothislong-termgrowthtrendinvolume,therehasbeenabroadeningofthecargobaseandincreasingcomplexities.Besidesthetraditionalinfluenceoftheglobalbusinesscycleandcommodityprices,otherfactorsareincreasinglyimpactingtradeandfreight:theUS-Chinatradewar,theimpactofsanctions,thegrowthofUSenergyexportsandfleetsupply interruption. Inshippingmarkets thathave reducedsurpluscapacity in recentyears, these tradecomplexitiesalsohaveagreaterinfluenceonfreightratevolatility.

DryCargomarketremainedlacklustreduring2019-20.Inthebeginningoffinancialyear,BDIason1stApril2019wasat685pointsandon31stMarch2020closedat626points.DuringtheyearearningsforPanamaxandSupramaxBulkersremainedsubdued.Higheroperatingcosts,weakerimportdemandinChinaandasupplysideinfluxadverselyaffectedthedrycargomarket.

In thecrude tanker segment,Q1of2019-20witnessedfleet growthacceleration,withplentyof tankerdeliveries seen. Inevitably, spotearnings fell,averagingclose tooperatingexpensesonmost routes.The tidegraduallystarted to turn inQ2of2019-20,whilst tankerearningsjumped,mostnotablyintheVLCCandAframaxsegmentsamidaperfectstormofimprovingfundamentals,geopoliticaleventsandtheIMOrelateddisruptions.CrudetankerdemandundoubtedlybenefitedfromtheongoingrobustgrowthinUScrudeexportsthroughouttheyear(andgainsinNorway/Brazilproductiontowardstheendof2019),withincreasesinnon-OPECsupplyeventuallymorethanoffsettingOPEC+productioncuts.

InContainerindustrygrowthinfleetcapacitycontinuedtoexertdownwardpressureonratesformostmajortraderoutes,includingthebusywestbound Asia–Europe lane.

Mostof thedemand foroffshoresupportvessels (OSV)canbeattributed to the risingdeepwaterdevelopmentactivities,drivenby thedecliningproductionfromthematurefieldsandincreasingcrudeoildemand.ThedemandforoffshoresupplyvesselsontheIndiancoastremainedflatthroughouttheyearwithshadesofimprovementduringsomemonths.

Market OutlookEvenasChina,thebiggestdriverforthedrybulkindustryrecovers,theimpactonshippingdemandfordrybulkindustryremainstobeseen.Some of the stimulus measures that have been, or are expected to be, announced concentrate on infrastructure and housing investment, whichwillboostdemandforrawmaterials.Butotherindustriesthatprovidedemandfordrybulk–suchassteelandaluminiumfortheautomotive industry – have all but collapsed.


It is expected trading in all commodities to fall, including the grains trade. Lower commodity demand comes as a direct result of thelockdowns, as well as from the ensuing economic slowdown. The International Energy Agency (IEA) expects demand for coal will fall by 8% in2020,withlowerdemandcomingfromlowerelectricityconsumptionbecauseoflockdownsandreducedmanufacturingactivity.

Giventheovercapacity–whichwasalreadyplaguingthemarketafteryearsofsupplygrowthoutstrippingdemand,theoutlookmayyetdeteriorate further if lockdown. Measures last longer than expected, or have to be reinstated to avoid a new wave of infections, but there is little prospect of an improvement. Even with large government investments in infrastructure, the global recession will doubtless lead to lower demand and low freight rates.

Undernormalcircumstances,freightratesinthecrudetankermarketmoveintandemwithoildemand.Weakoildemandnormallyleadstolowerrefineryrunsandweakcrudeoiltrade,whichinturntranslatesintolowerfreightrates.Arecord30%declineinglobaloildemandinApril2020alsoforcedrefinerstocutproduction,whichinturnputthebrakesonglobalcrudeoiltrade.DespiteahistoricdeclineinoilpricesbecauseofCOVID-19,majoroilproducerskeptpumpingoilatfullthrottleespeciallywhenSaudiArabiaandRussiastartedthepricewar.Theconsequentoilgluttothetuneof30mbpdthreatenedtooverwhelmglobalonshorestoragecapacityandledtoasteepcontangoinoilprices,whichinturnresultedinasuddenriseinfloatingstorageofoiltherebypushingtankerfreightratesnorthwards.

About11%ofthecrudetankerfleet(82VLCCs,70Suemaxesand80Aframaxes)waslockedinfloatingstorageattheendofApril2020,squeezingtonnagesupplyinthemarket.Inaddition,thepandemic-relatedincreaseinportdelaysandslowsteamingbytankersduetoweakdemand further suffocated vessel supply in the market, underpinning freight rates.

WitheasingofCOVID-19-enforcedlockdowns,theoildemandisexpectedtorecovergraduallyandtheoilstoredonvesselswillbethefirsttocomeoutofstorage.Thisshallresultintheincrementalvesselscurrentlylockedinfloatingstoragetoreturntotradebytheendoftheyear,whichinconjunctionwiththeexpansioninfleetwillinflatevesselsupplyinthemarketandimpactthefreightrates.Theexpectedincreaseinoildemandontheotherhandwillnotfullytranslateintohighertradeintheneartermas,inadditiontooilstoredonvessels,refinerswilluseonshore stocks which in turn will cap crude oil trade.

InContainershipping,nosuddenbounceback indemand isexpected.Salesofcontainerisedconsumergoodshavebeensomeof thehardest-hit by lockdown measures, and lower consumer spending power is likely to persist for a prolonged period.

Intheoffshoresegment,neartermoutlooklooksgrim.Duetorecentfall incrudeoilprices,theactivitiesoftheE&PplayershavebeenaffectedandmajorityofE&Pcompaniesaregoingslowwiththeirprojects.

FinancialsItgivesmeimmensepleasureandsatisfactiontoinformyouthatSCIhasreportedastandalonenetprofitofRs.302.35croresexcludingOtherComprehensiveIncome(OCI)againstanetlossofRs.121.99croresinthepreviousyear(consolidatednetprofitofRs.336.48croresexcludingOCIasagainstanetlossofRs.62.66croresinthepreviousyear).YourCompanybeingadiversifiedcompanyhasbeenabletoabsorbthelossesofboththebulkandcontainersegmentswhichhavebeenoffsetbytheprofitsofboththeTankerandtheOffshorefleet.TheOperatingRevenueclockedthisyearwasthehighestachievedoverthelastdecade;itincreasedfromRs.3872.85CroreinFY2018-19toRs.4425.44CroreinFY2019-20.YourCompanyhasbrokenrecordsonseveralfrontsacoupleofthemalmostoveradecade,andweare genuinely happy to be announcing this.

It is indeedamatterofgreatpride for theCompanythatwhileweworkedon improving theoverallfinancialhealthof thecompany, theCompanyyetagaincreatednewmilestones.YourCompanyachievedthedistinctionofbeingthefirstCPSEamongtheNavratna/Maharatnacompaniestohaveadoptedanddeclaredthefinancialresultsinthepandemicwhilealsobeingwellaheadofmostprivatecompaniesindoingso.Itmightwellbeappreciatedthattherestrictionsimposedduetothelockdownfrom24/3createdvariouschallengeswhichwereaddressedwithasenseofpurposefulnessandagility.Alloperations,ashoreandafloat,continuedunhindered,thefinancialstatementstoowerepreparedwellintimedespitetheconstrainingconditionsoflockdownandwereremotelyauditedbytheJointStatutoryAuditors.TheresultswereadoptedbytheSCIBoardinitsmeetingheldon29thMay2020withoutavailingofanyextensionsgrantedbytheSEBIduetothepandemic.ThestatutorymeetingswereheldviavideoconferencingwithanalmostfullattendanceoftheBoardmembersjoininginfromtheirrespectivelocations.ThisisonlytodemonstratethecommitmentoftheSCIteamtothecompanyagainstallodds.TheCompanyhasalsogotacleanunqualifiedreportfromthejointstatutoryauditorsaswellas“NIL”CommentsfromtheComptrollerandAuditorGeneralofIndiaonthefinancialstatementsforFY2019-20.

DividendTheCompanyinthetimesofthePandemichasendeavoredtobringcheerbyreturningtothedividendpayinglistafteralonggapofeightyears.TheBoardofDirectorsveryresponsiblygivingdueconsiderationtosustainabilityonallaccountshaverecommendedadividendof


Rs.0.75/-perequityshareoffacevalueofRs.10/-eachsubjecttoyourapprovalattheAnnualGeneralMeeting.TheBoardofDirectorsremains grateful to all the stakeholders for the unstinted support faith and patience that you had reposed in us during the global downturn facedbytheshippingindustryfrom2008onwardsandwhichcontinuedwithoccasionalspurtsthatdidnotsustainlongenough.Wearealsowellseizedthatwehaveanincreasedresponsibilityofmaintainingandsustaining,ifnotsurpassingthepreviousperformanceandgrowthdespite the adversities which today has taken the form of the unprecedented pandemic and its unpredictable impact for future as they unfold. Challengingtimeslieaheadforallofusandwearecommittedtostriketherightbalanceandbraceourselvesappropriatelywiththesameconviction, commitment, perseverance and resilience that we have displayed in the past.

AstheNation’s largestShippingLineandproudNationalFlagCarrier,TheShippingCorporationof IndiaLtd.carriestheNation’shopes,dreamsandaspirationsofAtmanirbharBharatasitsailsacrossvastseasandfarflungcontinentstoreinvigorateandreaffirmtheNation’semergenceasamajorGlobalPower.

Acquisitions and DisposalsTheyear2019-20commencedwithafleetstrengthof61vesselsand two tankers,m.t.Ankleshwarandm.t.MaharajaAgrasen,weredisposedofduringthecourseoftheyearandyourcompanywith59VesselstodayisthelargestIndianShippingcompanycateringtotheoverseasandcoastaltransportationofgoods.Ithasovertheyears,successfullyretainedits‘NumeroUno’positioninIndianShippingandhasbeenafrontrunnerintermsofgrowth,diversificationandreplenishmentofitstonnage.Withayoungerandmodernfleet,yourcompanywillbefullygeareduptotakeadvantageofthebetterfreightmarketconditions.Yourcompanyenjoysanenviablepositionintermsoftheaverageageofthefleetandhavingoneoftheyoungestmerchantshippingfleetsintheworld.YourCompanywishestoaugmentitstonnageandishopefulofacquiringvesselsbasedonthemarketconditionsandviability.

Corporate Social ResponsibilityYourcompany’svaluesasasociallyresponsibleorganisationarewellentrenchedinitsactivities.Thisyear,theemphasishasbeenonschooleducation for underprivileged children, eradication of hunger and malnutrition, women empowerment, health care and other areas of social upliftment.

YourCompany’semployeesincludingseafarershavevoluntarilycontributedoneday’swagestoReliefFundsamountingtoRs.108.69lacstofighttheCOVID19pandemic.AcontributionofRs.36.97lakhshasalsobeenmadetowardsPM-CARESaspartofitsCorporateSocialResponsibilitysumminguptoRs.145.66lakhs.TheBoardofDirectorsinitsmeetingheldonthe29thofMay,2020hasplacedonrecordand appreciated this voluntary effort and display of solidarity by the employees towards the national cause.

Corporate GovernanceYourCompanyhasalwaysbeensteadfast in itsorientation towards instituting andmaintaining fair, transparent andethical governancepractices inachieving long-termcorporategoalsand toenhancestakeholders'value.TheReportofDirectorsonCorporateGovernanceplacedintheDirectors’ReportcomprehensivelydescribesthestructureandpracticeofCorporateGovernanceofyourCompany.InadditiontocomplyingwiththerequirementsofCorporateGovernanceemanatingfromvariousstatutes,rulesandregulations,yourCompanyisalsoincompliancewiththeDPEguidelinesonCorporateGovernance.TheCorporateGovernanceissuesarekeptinconstantfocusbytheBoardofDirectorsofyourCompanyandyourCompanycomplieswiththeapplicableguidelinesbothinletterandspirit.

Other developmentsYourcompanyon1stofJanuary2020smoothlyandsuccessfullytransitionedtobeingcompliantwithIMO's0.5%sulphurfuelregulationandthevesselsremainedcompliantandarebeingsuppliedlowsulphurfueloilsince1stJanuary,2020.

YourCompanyhasthehonourofcontinuedassociationwiththeIndianNavythroughdeploymentofSCISabarmati,offshorevessel, forconductingSeaAcceptanceTrials(SAT)foritsnewDeepSubmergenceRescueVehicle(DSRV)equipmentontheWestandEastCoastsofIndia and is proud to serve the project of national importance.

YourCompanycontinuedtodisplaycourageandcommitmentwhenSCI’soffshorevesselm.v.‘SCIUrja’towedadistressedtrawlerwith18fishermenduringtheseveretropicalstorm‘KYARR’ofOctober2019tosafety.

YourCompanyhasbeenidentifiedforstrategicdisinvestmentbytheGovernmentofIndiaandtheDepartmentofInvestmentandPublicAssetManagement(DIPAM)ofMinistryofFinancehasappointedTransactionAdvisors,AssetValuersandLegalAdvisorsandtheduediligenceprocess is in progress.

YourCompanycomplieswiththeGovernmentofIndia'sPublicProcurementPolicy(PPP)forMSEsOrder,2012asallitstendershavearelevantclausegivingthebenefitsandpurchasepreferencesavailabletoMSEsintheOrder.DuringtheFinancialyear2019-20,thetotal


procurementofGoodsandServicesfromMSEsisaround30.68%asagainstthetargetof25%setintheOrderdulyamendedinNovember2018.YourCompanyactivelyparticipatesinVendorDevelopmentProgramsorganisedforMSEsacrossIndiaandprovidesthedetailsofprocurementsandservicesrequiredenableMSEstoparticipateinSCItenders.

IamhappytosharewithallofyouthefollowingaccoladesreceivedbyyourCompany–

• ‘MostCompassionateEmployerofIndianSeafarers’atNMDCelebrations

• ‘StrategicInvestments’and‘HRExcellenceAwards’undertheFinancialandNon-FinancialCategoryrespectivelyat‘7thPSUAwards-Governancenow’

• FirstPrizeforBestEnterpriseawardatthe30thNationalMeetofWIPS,atributetoExcellenceinPublicEnterpriseManagementunderNavratnaCategory

• MumbaiRegionalRoundofAIIMA-4thNationalCompetitionforManagersinPSUcategory

• “TheShippingCompanyoftheYear-IndianFlag”atSamudraManthanAwards

• Ranked1stamongtheKeyOrganizationsunder theSwachhBharatMission2019–SwachhSurvekshan initiativeof theMinistryofShipping

• SecondPrizeforSwachhtaPakhwada2019,MinistryofShipping

YourCompanyalsoreceivedthefollowingrecognitionsapartfromtheaboveaccolades

• RecognitionFromNationalUnionofSeafarersofIndia(NUSI)for'employingthehighestnumberofwomenseafarersonMerchantNavyShips'onthe'NUSIFounderMohamedEbrahimSerangday'

• "CertificateofAppreciation"fromtheNauticalInstitute,London,IndiaSWBranchAwardtoCapt.RohanJNandTeamOSVColonelSPWAHIfortheirRescuemissionoffMumbaiHigh.

• "CertificateofAppreciation"fromtheNauticalInstitute,London,IndiaSWBranchAwardtoMrs.HKJoshiandTeamSCIforpivotalrolein handling the crew management crisis during the pandemic.

AcknowledgementsI would take this opportunity to express my gratitude to the Government of India for its support to your Company. I wish to thank ShriMansukhL.MandaviyaJi, theHonourableMinisterofState(IndependentCharge)forShippingandMinisterofStateforMinistryofChemical andFertilizers,Governmentof India forhis vision, leadershipandconsistentguidance toyourCompany. Iwouldalso like toacknowledgewithgratefulnessthecounselanddirectionsofShriGopalKrishna,erstwhileSecretary(Shipping)GovernmentofIndiaduringhistenureforthegrowthofyourCompany.IalsowelcomeDr.SanjeevRanjan,Secretary(Shipping)GovernmentofIndiaandthankhimforhiswhole-heartedsupportandguidance.MysincerethanksarealsoduetotheotherofficialsoftheAdministrativeMinistry,otherMinistriesandDepartmentsoftheGovernmentofIndia.IwouldalsoliketoexpressmygratitudetowardstheDirectorateGeneralofShippingforitssupportandunderstandingofvariousproblemsbeingfacedbytheIndianshippingindustryandspecificallybyyourCompany.Ialsowishto express my special appreciation towards the seafarers our key workers during the pandemic, all the shareholders, stakeholders, my colleaguesontheBoardofDirectorsandallthefloatingandshoreemployeesfortheircontinuedsupportovertheyears.

Smt. H.K. Joshi,

Chairperson & Managing Director


BOARD OF DIRECTORS

Smt. H.K. Joshi - Chairperson & Managing Director& Director (Finance) Addl.chargeSmt. H.K. Joshi, Chairperson andManaging Director, joined SCI on 5th February, 2015 as Director(Finance)andwasalsoappointedasCFO,SCIw.e.f.thesamedate.Duringhertermlastinglessthanfiveyears,sheheldmultipleadditionalchargesfromtimetotimeattheBoardlevel-Director(Personnel&Administration)in2017-18,Director(BulkCarrier&Tankers)in2019,CMDfrom12thSeptember2019consequenttocompletionofthetenureoftheformerCMDandcurrentlysheholdstheadditionalchargeofDirector(Finance)w.e.f.19thDecember2019whenshewasappointedbytheGovernmentofIndiaastheChairperson&ManagingDirector,SCI.With a very rich and diversified experience spanning over three decades with ONGC, a MammothMaharatnaPSU,herexperienceincludesalmosttwodecadeswithONGCVideshLimited(OVL–overseasarmofONGC)whichlooksaftertheinternationalbusinessacquisitionsofONGCwhereinshewasactivelyassociatedwiththepathbreakinginternationaltransactionswhichledthecompany(OVL)toturnaround.This assignment gave her a lot of exposure and opportunity to travel and brought an all-round corporate developmentofherprofessionalattributestoInternationalstandardsinadditiontopolishingherfinancialacumen.ShestartedhercareerasaLecturerinDelhiUniversityandjoinedthecorporateworldin1984.SheisamemberoftheInstituteofDirectors(IOD),FellowMemberofTheInstituteofCostAccountantsofIndia,LifememberoftheInstituteofPublicAdministration,rankholderinPost-GraduationinCommerce(FinancialManagement)fromDelhiSchoolofEconomics,B.Com(Hons.)fromDelhiUniversity,MastersofBusinessAdministration(MBA)-FinancialManagement.ShebelievesincontinuouslearningandhasPostGraduateDiplomasinHumanResourceManagement,ManagementandFinancialManagementaswell.Smt.H.K.Joshiwasconferredwith‘CEOwithHROrientation’Awardat the28thEditionoftheWorldHRDCongress2020andwith‘SailorTodaySeaShoreAwards2019’underthecategoryof"WomanofSubstance".ShewasalsohonouredwiththeBestWomanEmployeeAward1stPlace(ExecutiveCategory)bytheForumofWomeninPublicSector(undertheaegisofSCOPE)in2018.Shewasawarded“TheTenthIndiaCFOAwards–ExcellenceinFinancetoenableaTurnaround”hostedbyInternationalMarketAssessmentIndiaPrivateLimitedinassociationwithPierianServicesinMay2016.Smt.Joshihasalsobeentherecipientof“TheMostInfluentialCFOsofIndiaAward”fromCharteredInstituteofManagementAccounts,UKfortwoyearsinsuccessionviz.2015and2016andthe“CMACFOAward2014”fromTheInstituteofCostAccountantsofIndia.Dynamic, resultorientedwithaneye for identifying talentshebelieves thathuman resourcesare theintegral assets of a company. She believes in team work which is evidenced with the various group awardsthatshereceivedinherpreviousassignmentwithONGC.

Shri Sanjay Kumar - Government DirectorShri.SanjayKumarIAS,1992Batch.PriortothishewasworkingasJointSecretary(Institutions),DepartmentofSchoolEducation&Literacy,MinistryofHumanResourceDevelopment,Governmentof India,NewDelhi.LookingafterallGovernmentof India Institutions likeKVS,NVS,CBSE,NIOS,CTSA,NCERTandNCTE.HehaswideexperienceandhandledseniorpositionsinbothCentralGovernmentandStateGovernmentindiversefieldslikeFinance,IndustriesandCommerce,conductofelections,districtadministration,economic policies and school education. Qualifications-MastersinBusinessAdministration(MBA)andICWA.


BOARD OF DIRECTORS

Shri Satinder Pal Singh - Government DirectorShriSatinderPalSingh,JointSecretaryintheMinistryofShippingwasappointedaspart-timeOfficialDirectorontheBoardofDirectorsofShippingCorporationofIndiaLtd.inAugust2017.ShriSatinderPalSingh,anIPSOfficerof1995batchfromHimachalPradeshcadreisapostgraduateinLawfromBrunelUniversity,London.ShriSinghalsoholdsaMaster’sdegreeinPoliceManagementfromOsmaniaUniversity,Hyderabad.HehasservedinseniorpositionsintheStateGovernmentofHimachalPradeshincluding InspectorGeneralofPoliceandSpecialSecretary in theDepartmentofHome.Prior tohispresentpostingasJointSecretaryintheMinistry,ShriSinghhasservedasDirectorintheMinistryofHousingandUrbanAffairs.

Dr. Gautam Sinha - Independent DirectorDr.GautamSinhahasbeeninductedasanIndependentDirectorontheBoardofShippingCorporationof IndiaLtd inSeptember2017.Dr.SinhareceivedhisPhDforhis thesisonDirectionsDimensionsofcustomerserviceinIndianSteelIndustryfromDepartmentofIndustrialEngineeringManagement,IIT Kharagpur in 2001. Dr. Gautam Sinha is anM Tech (Industrial Engineering Management) fromIIT- ISMDhanbad in1990andBTech(Production),BITSindri in1978.Presently,he is theFounderDirectorofIIMKashipurfrom2012onwards,whereinhehadbeenawardedforhismeritoriousworkindifferencefieldsofacademics.Dr.Sinhahasbeenconferreduponvariousawardsviz.;‘BestTeacherinOperationsManagement’awardatAsia’sBestB-SchoolAwards,Singapore, ‘100most influentialDirectors in India’,‘Thought Leader Award’, ‘Institution Builder’ to name a few. Prior to his presentpositionasDirector,IIMKashipurheheldthechargeofDirector,LalBahadurInstituteofManagement,Delhi fromApril2011 toMay2012 responsible forall academicandfinancial resultsof theschooland reporting to Board of Governors. Dr.Sinha has assumed various responsibilities in the field ofacademicsasProfessor,AssociateProfessor in IITKharagpur from2002-2011.AsProfessor in IITKharagpur, Dr.Sinhawas involved in teaching OperationsManagement, Supply ChainManagement,ManufacturingStrategy,ServiceOperationstoMBAstudents,conductingMDPsforexecutives,guidingPhDresearchersinOperationManagementanddesignednewExecutiveMBAProgrammewhichwaslaunchedatKolkataandBhubaneshwar.PriortohiscareerinIITKharagpur,fromtheperiod1990-2002,Dr.SinhaalsoheldchargeofSeniorDeputyDirector inManagementTraining Institute(MTI)ofSAILwherein, he implemented ISO9001:1984QAsystem in1993andhelpedMTIwinGoldenPeacockNationalQualityAwards.From theperiod1979-1990heheld responsibilityas IndustrialEngineer inBokaroSteelPlant,SAILandasTraineeEngineerinLarsenToubrofrom1978-79.Dr.SinhahasgottohiscreditvariouspublicationsonResearchmethodology,CustomerRelationshipManagementinRetailetc.Hehasreceivedtraininginteaching/learningpedagogyatHarvardBusinessSchoolin2013andTQMat InstituteforResourceDevelopment,Marylandin1991.HehasalsoundertakenconsultancyassignmentsandMDPsforvariouscompaniesinIndiaandabroad.CurrentlyMr.GautamSinhaisViceChancellor,IMSUnisonUniversity,Dehradun.


BOARD OF DIRECTORS

Shri Raj Kishore Tewari - Independent DirectorShriRajKishoreTewarihasbeeninductedontheBoardofSCIinSeptember2017.HehasdonehisB.Sc. (Hons)andM.Sc. (Physics) from theUniversityofLucknow,M.Sc. (FiscalStudies) from theUniversityofBath,U.K.andLLBfromtheUniversityofMumbai.ShriTewariwasrecruitedtotheIndianRevenueServicein1976andhasbeenapartoftheDirectTaxesAdministrationsincethentillretirement.Hehasexpertiseandwideexperienceofaround38yearsinmattersrelatingtodirect taxesandhasretiredastheChairmanof theCentralBoardofDirectTaxes(CBDT).Hehasbeenactivelyinvolvedinformulation,implementationandadministrationofDirectTaxespolicyoftheGovernmentofIndia.Asamember/chairmanCBDThehasattendedinternationalseminars/conferences.Hewasamemberof high level committee appointed by Ministry of Corporate Affairs for making recommendationsto strengthen the disciplinarymechanism in professional institutes of ICAI, ICSI and ICMI. He alsofunctionedasGovtNomineeinBoardofDisciplineofICAIforthreeyears.InJan2019hewasappointedCourseDirectorfor34thcourseonLegislativeDraftingconductedbyBureauofParliamentaryStudiesandTraining,LokSabhaSecretariat.

Dr. P. Kanagasabapathi - Independent DirectorDr.P.KanagasabapathiwasinductedintheBoardofSCIinNovember2017.AProfessorofManagementandAdjunctProfessorofLaw,heobtainedhisDoctorateincapitalmarketsandinvestmentmanagementasaUGCResearchFellow.HehasaPostGraduateDegreeinCommercefromtheUniversityofMadras,besidesadegreeinLaw.Known for his pioneeringfield studies in different industrial andbusinesscentres, he andhis teamhavebeentakingupstudiesfordifferentindustriesandhadcompletedamajorstudyfortheGujaratGovernment.HeisinvolvedinIndia-centricresearchandstudiesformorethantwodecadesandwasearliertheDirectorofstatelevelresearchandtraininginstitutepromotedbytheTamilNaduGovernment.He writes in English and Tamil.OneofhisbooksentitledIndianEconomic,BusinessandManagementModelsisconsideredapioneeringinitiativetowardsindianizingtheeconomicsandmanagementeducationandusedasatext/referenceinthe premier national institutions. He has been working with the central and state bodies and had served astheelectedPresidentofanagriculturalcooperativebank.

Smt. Sangeeta Sharma – Director (L&PS)Smt.SangeetaSharma tookover chargeofDirector (Liner&PassengerServices) of TheShippingCorporationofIndiaLtd.(SCI)inDecember2017.Smt.SharmahasdoneherMastersinManagementStudies fromWorldMaritimeUniversity,Malmo,Sweden.Sheholdsdegrees inMastersofPersonalManagement&B.ComfromPuneUniversity.Shehasavastexperienceofover34yearsatSCIandhasservedatvariousresponsiblelevelsinPurchase&ServicesDivision,Technical&OffshoreServicesDivision,BulkCarrier&TankerDivisionandLiner&PassengerServicesDivision.DuringhertenurewithSCI,shehasacquiredindepthknowledgeofshippingbusinessandhasbeenanimportantpillarofthecompany in bringing control and stability in operations. Her core competencies are strategic planning, commercial operations, contract negotiations, project management and personnel management.Smt.SharmawasthepremierinstartingoftheGulfandCoastalcontainerservices(SMILEService)ofSCIintheyear2008.ShehashandledcommercialoperationsofvarioussectorslikeEurope,USA,Gulf&CoastalandhasalsomanagedfeederservicesofSCI.Underherableguidance,LinerDivisionofSCIstartednewservicesonChennaiPortBlairandKolkataPortBlairroutesinlinewithGOI'splanofpromoting coastal shipping.Shewasawardedwith “WomanProfessional inShipping&Logistics” inprestigious IndiaMaritimeAward2018forheroutstandingcontributionintheshippingbusiness.Shewasfurtherawardedwith1st prizeforthe“BestWomenEmployeeAward–Executivecategory”inFebruary2019byForumofWomeninPublicSector(WIPS).ShewasalsodeclaredWinnerofMaritimeandLogisticsAwards-2019of“WomenProfessionaloftheYear”organizedbyEXIMIndiaandaddedonemorefeathertohercap.


BOARD OF DIRECTORS

Shri Rajesh Sood – Director (T&OS)ShriRajeshSoodistheDirector(Technical&OffshoreServices)ofTheShippingCorporationofIndiaLtd.sinceDecember2017.HeisaMarineEngineerholdingClassI(Motor)certificateofcompetencyissuedbyMinistryofTransportandMasters’degreeinShippingManagementfromtheWorldMaritimeUniversity,Malmo,Sweden.ShriSoodhasavastexperienceofover35yearsinvarioussegmentsofMaritimefield.Hestartedhisprofessional journeywith“TheShippingCorporationof India” in1984as a5thEngineer officer.After servingondiverse typesof ships in various ranks for 15 years, hejoined shore establishment in 1998.He gained experience performing diverse roles across variousdepartmentsincludingshipbuilding&services,tankertechnicalandbulkcarriertechnical.Hewasalsoinvolvedinanumberofshipacquisitionprojectsfromconceptualdesignstagetilldeliveryofvarioustypesandsizesof thevessels.He isalsomemberofvarious technicalcommitteesand involved informationofrules/standards.DuringhistenureasGeneralManager,hewasresponsibleforbringingmuch needed stability and control in operations.

Shri Surinder Pal Singh Jaggi – Director (P&A)Shri Surinder Pal Singh Jaggi took over as Director (Personnel & Administration) of The ShippingCorporation of India Ltd. on 24th April, 2018. Prior to assuming charge of the office of Director(Personnel&Administration)inSCI,ShriJaggiwasworkingasED(P&A),SAILCorporateofficelookingafter all functions of Personnel, Training, Estate Administration, Industrial Relations&Welfare. ShriJaggiholdsadegreeinBA(Hons.),PoliticalScience,DiplomainSocialWelfare,LLB,PGDiplomainJournalism&CommunicationandPostGraduateDiplomainHumanResourceManagement.HewasalsosponsoredforathreemonthscertificatecourseonPersonnelManagementintheRoyalInstituteofPublicAdministration,(RIPA),London.AnactiveManagementTrainerandQuizMaster,ShriJaggiisalifememberofQualityCircleForumofIndiaandNationalInstituteofPersonnelManagement.Shri Jaggi has over 37 years of experience in HR& allied functions, dealingwith diverse Key HRprocesses likeDevelopmentandImplementationofHRPolicy,TalentPromotion, InnovativeLearningand Development Initiatives, Performance Management, Employee Involvement and Engagement,Shop-floorDisciplineManagementandIndustrialRelationsinMines,WorksandNon-worksareas.HehasalsoworkedinthefieldofPublicRelations,BusinessExcellence,Liaison&Administrationetc.AtSCI,asheadofPersonnelandAdministrationDivision,ShriJaggihaslednumerousnewinitiativesto enhance employee engagement and to promote a culture of learning in the organisation. A range of training&capabilitybuildingprogramshavealsobeenlaunchedinSCIunderhisleadership.Capitalizingonhisrichexperience,SCIhastakenupsystematicreviewofpoliciesandsystems,forshoreaswellasforfleetemployees,tobringthematparwithbestacrosstheindustryandotherCPSEs.

Shri Vijay Tulshiramji Jadhao - Independent DirectorShriVijayTulshiramjiJadhaohasbeeninductedasanIndependentDirectorontheBoardofShippingCorporationof India Ltd in July2018.He is a business consultant having experienceofmore than30 years in corporate sectors.He is also amember of variousNon-Governmental and educationalInstitutionsinVidarbharegionofMaharashtralikeShriVyankateshSevaSamiti,Washimetc.Hiscorecompetency lies indeepunderstandingofagriculturesectors.He isalsoEx-DirectorofMaharashtraAgroIndustriesDevelopmentCorporation(MAIDC).He is also closely associated as Guest Faculty with various reputedManagement and EngineeringInstitutes. He has conducted various training programmes on project management and also working as an Advisor for corporate training assignments and training faculty.ShriJadhaoisalsoinvolvedinco-operativesectorsandco-operativeBanksinMaharashtralikeAkolaDistrictCentralCo-opBankLtd.HeisaSocialActivistandhissocialcontactsandexperienceinbusinessare also very helpful to the future prospects of various company.


BOARD OF DIRECTORS

CA Mavjibhai B. Sorathia - Independent DirectorCAMavjibhai B. Sorathia has been inducted as an Independent Director on the Board Of ShippingCorporationofIndialtd.inDec2018.HeisPracticingCharteredAccountantandfellowmemberoftheInstituteofCharteredAccountantsofIndia.HehasdoneB.Com(Hons)fromM.S.UNIVERSITY,BarodaandBachelorofLaw(LL.B.)fromShri.L.A.ShahLawCollege,Ahmadabad.HehasdonediplomainGerman&FrenchlanguagefromfacultyofArts,M.S.UNIVERSITYofBaroda.Heholdsmorethan33yearsofexperienceinpracticeandatvariousIndustrieslevel.HewasappointedasTrusteeonBoardofDeendayalPortTrust,Kandla–AMajorPortofIndia(FormallyknownasKandlaPortTrust.)HeisaDirectorontheBoardoftheKutchDistrictCentralCo-opBankLtd.HewasConvenerofCAcell,BJPGujaratPradesh.Heisactingtrusteeonboardofmanycharitabletrusts.HewasEx.MayorofAnjar,Kutch.He isregularspeakeratvariousprofessional forumsandprominentcolumnwriteronSwamiVivekanandandMaharshiAurobindoandMother.He is promoter of Development of GIDC, Anjar-Kutch. He was Chairman of Taxation Committee,GandhidhamChamberofCommerce.HewasChairmanofdirecttaxationcommittee,Anjarchamberofcommerce&industries.HewasPresidentofGandhidhamtaxconsultantsassociationforcontinuoustenureof14Years.HewasVice-PresidentofAllGujaratFederationofTaxConsultantsAssociation,Ahmedabad.

Shri Atul Ubale – DIRECTOR (B&T)ShriAtulLaxmanUbalejoinedSCIon15thMay,1989andtookchargeasDirector(BulkCarrier&TankerDivision)from11thNovember,2019.ShriUbaleisanalumnusofMumbaiUniversityholdingBachelorofCommerceDegreeandPostGraduateMaster’sDegreeinManagementStudies.Inacareerspanningover3decadesendowedwithrichandvastexperienceinvariousfacetsofcoreshippingactivities,hehasservedandheldvitalpositions inTechnical&OffshoreServicesDivision-handlingO&MOffshoreContracts,indigenisingIndianoffshoreindustry,shipacquisitions/shipbuildingcontractsforaugmentingIndiantonnage;andinBulkcarrierandTankerDivision-overseeingcharteringand commercial operations of bulk carriers and tankers meeting the ever growing and diverse needs of the Indian Oil Industry. Shri Ubale with his hands on experience, commercial acumen, intimate knowledge of all types ofcharteringinvariousmarketsegmentsincludingBulkCarriers,Tankers,GasCarriers,ContainerShips,Passenger Vessels, Tugs etc. is a highly regarded andwell-known personality in domestic aswellas international chartering market. He has been instrumental in evolving innovative and sustainable strategies for gainfully employing SCI’s vast fleet featuring, in-chartering / out-chartering fixtures,various typesofContract ofAffreightments (COAs)&pool arrangements and alsohasbeen at theforefront of conceptualizing and securing highly remunerative and innovative long termcharters forSCI’sfleet.OwingtohisengagementinSCI’soverseasofficeinUKandSCI’sJointVentureCompanyinTehran,ShriUbalecarrieswithhimselfsubstantialinternationalexposureandexperience,helpingmakeSCI’sChartering&CommercialOperationsanametobereckonedwithinthedomesticaswellasinternationalshipping markets.


Shri Pramod Kumar Panda – Independent DirectorShri Pramod Kumar Panda, a career central banker, specializes in financial regulation, bankingsupervisionandfinancial inclusion.Healsospecializes in strategiccapacitybuilding, particularly infinancialregulationandinclusion.HehaslongandextensiveexperienceinReserveBankofIndia(RBI)'sonsitesupervisionandoffsitemonitoringofcommercialbanks.HehasalsoheadedtheFinancialFraudMonitoringCellofDepartmentofBankingSupervision(DBS),CentralOfficeofRBI.Basishisfinancialsupervisionexperience,Shri.Panda has deep technical understanding of internal controls, riskmanagement including fraud riskmanagementandcorporategovernanceinthefinancialsector.Hehasrichexperience,bothatglobalandnationallevelsindesigninganddeliveringhighqualityandinnovativecapacitybuildingprograms.Shri Panda, is currently associatedwith the Centre for Advanced Financial Research and Learning(CAFRAL)'s, learning activities as Senior Program Director. Also, he was Director on the Board ofCorporationBankasRBl'snominee.HewasalsotheRBINomineeDirectorontheBoardofBankofIndia.HewasalsoanIndependentDirectorontheBoardofHomeCreditIndiaFinancePrivateLimited,asystemicallyimportantNBFCwhichisasubsidiaryofaninternationalnon-bankfinancialinstitution,HomeCreditB.V.headquarteredinNetherlands.HeholdsaMasters'DegreeinScience(MSc)fromLondonSchoolofEconomics&PoliticalScience,UK, aMaster's Degree in Arts (MA) in Political Science fromUtkal University, Odisha, India and aBachelor'sDegreeinLaw(LLB)fromUtkalUniversity.HehascompletedtheSloanExecutiveEducationProgrammeonMIT'sApproachtoDesignThinkingfromMassachusettsInstituteofTechnology,USA.AsGeneralManagerandChiefGeneralManageratRBl'sDBS,hehasledprojectsforimplementationofRiskBasedSupervision,Pillar2ofBaseII,FinancialConglomerateSupervisionandCrossBorderSupervision&SupervisoryCooperation.Hehasbeenamemberof theTaskForce that advised theAccordImplementationGroupofTheBaselCommitteeonBankingSupervision(BCBS)infinalizingtheGoodPracticePrinciplesonSupervisoryColleges.ShriPandahasbeenwith the InternationalMonetaryFundfor threeyearsasResidentAdvisorat itsTechnicalAssistanceCentre(AFRITACSouth),MauritiuswhereheassistedthefinancialregulatorsofsouthernAfricancountriesinstrengtheningtheirfinancialsectorregulationandsupervision.HehasalsobeenthePrincipalofRBl'sCollegeofAgriculturalBanking,PunewhichbuildscapacityamongstbankersinIndiaandSouthAsiaininclusivefinance.

BOARD OF DIRECTORS


S. No NAME TITLE DES LOCATION DIVISION

1 DIPANKARHALDAR Mr. ED MUM BoardSectt.

2 MANDALSHILADITYA Mr. GM PortBlair PortBlair

3 KULKARNIPRADEEPV. Mr. GM MUM P&S

4 KULKARNIANJALIP. Ms. GM MUM F&A

5 MISRASANDEEP Mr. GM MUM B&T

6 MURUGADASJ. Mr. GM MUM IT

7 VINODG. Mr. GM MUM L&PS

8 GANGOPADHYAYPRABIRKUMAR Mr. GM MUM B&T

9 TYAGIBINESHK. Capt. GM MUM P&A

10 SERRAOLAWRENCE Mr. GM MUM F&A

11 BANDEKARS.R. Mr. GM MUM B&T

12 SAINIMANJITSINGH Mr. GM CHEN CHEN

13 DINGLEYVIKRAM Mr. GM MUM B&T

14 N.SUBRAMANYAPRAKASH Mr. GM MUM F&A

15 RAJESHKUMAR Capt. GM MUM B&T

16 PURUSHOTHAMJAYARAMAN Mr. GM MUM L&PS

EXECUTIVE DIRECTOR AND GENERAL MANAGERS AS ON 1.7.2020


DECADE AT GLANCE (STANDALONE)OPERATIONAL STATISTICS

(FiguresinCroresof`)IGAAP IND AS

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2015-16* 2016-17 2016-17** 2017-18 2018-19 2019-20Operating Earnings 3543.4 3820.8 4152.5 4155.2 4153.8 4078.3 4049.9 3446.9 3447.4 3469.5 3872.9 4425.4Interest Income 191.4 183.4 107.3 103.3 145.9 113.2 114.1 106.4 106.4 86.3 90.5 81.2Other Income 285.0 495.9 236.4 280.5 288.0 85.7 50.7 38.8 38.8 61.7 141.8 161.8Total Earnings 4019.8 4500.1 4496.2 4539.0 4587.6 4277.2 4214.7 3592.1 3592.6 3617.5 4105.2 4668.4Operating Expenses 2254.5 3328.4 3273.7 3112.3 2794.2 2339.6 2098.8 2141.3 2178.0 2,223.0 2,533.0 2,558.3Other Expenses 576.7 515.7 668.4 585.6 567.8 636.9 612.4 535.4 490.6 574.9 629.5 727.2FinanceCosts 66.9 387.3 161.8 206.1 179.3 160.6 171.9 172.2 172.2 179.8 359.1 364.1Depreciation 465.1 608.7 760.5 856.4 770.2 580.0 542.3 566.1 566.1 610.3 658.5 671.2Impairment - - - - - 136.4 - - - - - - Extraordinary items - - (299.7) - - - - - - - - - TaxLiability 89.3 88.2 45.8 53.3 75.2 46.5 36.1 41.7 43.5 (224.3) 47.1 45.2Total Expenses 3452.5 4928.3 4610.5 4813.7 4386.7 3899.9 3461.4 3456.6 3450.3 3363.7 4227.2 4366.0ProfitafterTax 567.3 (428.2) (114.3) (274.7) 200.9 377.3 753.3 135.5 142.3 253.8 (122.0) 302.4

* Figures are restated as per Ind AS ** Figures are restated as per Ind AS 8

FINANCIAL HIGHLIGHTS:IGAAP IND AS

31-03-11 31-03-12 31-03-13 31-03-14 31-03-15 31-03-16 31-03-16* 31-03-17 31-03-17** 31-03-18 31-03-19 31-03-20

WHAT THE COMPANY OWNEDFixedAssetsGrossBlock 11841.3 13334.4 16556.8 17486.3 17,297.9 18,154.4 15,851.3 15,945.6 15,945.6 15,986.2 15,594.9 15,218.3

Less:Depreciation(Cum)&Impairment 4472.1 4421.6 5017.0 5551.6 5,853.4 6,551.0 4,024.1 4,534.9 4,534.9 4,638.2 4,475.8 4,565.1NetBlock 7369.2 8912.8 11540.3 11934.7 11,444.5 11,603.4 11,827.2 11,410.7 11,410.7 11,348.0 11,119.1 10,653.1AssetsunderConstruction 1790.4 1833.3 1572.5 710.9 490.9 - - 27.3 27.3 7.8 7.6 2.8WorkingCapital 2431.0 2036.6 1550.1 1837.6 1,341.3 1139.6 1027.0 216.4 226.4 25.8 (441.1) (605.0)Investments 292.7 274.6 117.7 113.5 90.1 65.3 65.7 74.6 74.6 130.9 77.1 77.3Total 11883.3 13057.3 14780.6 14,596.7 13,366.8 12,808.3 12,919.9 11,729.1 11,739.1 11,512.5 10,762.7 10,128.3WHAT THE COMPANY OWEDLongTermFunds:BankLoans 4715.2 6323.0 7707.4 8000.5 6,833.2 5897.9 5844.8 4518.1 4518.1 3,790.6 2,963.7 2,189.4UnsecuredLoans - - 457.0 256.4 - - - - - 520.4 726.3 565.4TotalLongTermFunds 4715.2 6323.0 8164.4 8256.9 6,833.2 5,897.9 5,844.8 4,518.1 4,518.1 4,311.0 3,690.0 2,754.8DeferredTaxLiability - - - - - - 351.6 343.6 388.2 104.0 91.5 75.3NET WORTH OF THE COMPANYShareCapital 465.8 465.8 465.8 465.8 465.8 465.8 465.8 465.8 465.8 465.8 465.8 465.8Reserves&Surplus 6702.3 6268.5 6150.4 5874.0 6,067.8 6444.6 6257.7 6401.6 6367.0 6,631.8 6,515.4 6,832.4Total 7168.1 6734.3 6616.2 6339.8 6,533.6 6,910.4 6,723.5 6,867.4 6,832.8 7,097.6 6,981.2 7,298.2Dividendpaid 256.2 - - - - - - - - - - - Dividend%*** 55.0 - - - - - - - - - - 7.5

* Figures are restated as per Ind AS ** Figures are restated as per Ind AS 8*** The Board of Directors, in its meeting held on May 29, 2020, has recommended a dividend of Rs 0.75/- per equity share of face value of Rs. 10/- each for the financial year ended March 31, 2020 which is subject to the approval of the shareholders at the Annual General Meeting.

(FiguresinCroresof`)


TOTAL INCOME(in ` Crores)

PROFIT BEFORE TAX(in ` Crores)

GRAPHS (STANDALONE)

GROSS BLOCK(in ` Crores)

1.*IGAAP.2.#RestatedIndAS.3.**IndAS.4.Fiscalyear2015representsFinancialyear2015-16,2016-Financialyear2016-17,2017-Financialyear2017-18,2018-Financialyear2018-19and2019-Financialyear2019-20.



46684277

42153592 3593

41053617

2015* 2015# 2016** 2016# 2017** 2018** 2019**

423.79

789.42

177.24 185.76

29.48

347.51

2015* 2015# 2016** 2016# 2017** 2018** 2019**

(74.85)

18154

15851

15946 15946 1598615595

15218

2015* 2015# 2016** 2016# 2017** 2018** 2019**


DEBT EQUITY RATIO

0.85 0.87

0.66 0.660.61

0.53

0.38

2015* 2015# 2016** 2016# 2017** 2018** 2019**

BOOK VALUE PER SHARE AT THE END OF FINANCIAL YEAR(in `)

GRAPHS (STANDALONE)

148.4

144.3

147.4 146.7

152.4

149.9

156.7

2015* 2015# 2016** 2016# 2017** 2018** 2019**




SALIENT STATISTICS 2019-20

Authorised Capital `1000.00Crores

Subscribed & Paid-up Capital `465.80Crores

Depreciation and Amortisation `671.27crores

Gross Earnings `4668.39crores

Gross Investment on Fleet `11900.48crores

No. of Passengers carried (including managed vessels)Mainland-24670

Inter-Island-195282 Foreshore-461037

No. of Employees (including crew) (As on 1st July, 2020)Contract / Retainers

195030

Vessels Owned (As on 1st July, 2020)

• Number 59

• Tonnage 5.311millionDWT2.940millionGT

Vessels on Order (As on 1st July, 2020) NIL

No. of Acquisitions (from 01.04.2019- 01.07.2020) NIL


NOTICE OF MEETING

NOTICEisherebygiventhatthe70thAnnualGeneralMeetingofTheShippingCorporationofIndiaLimited(“theCompany”)will be held on Friday, September 18, 2020 at 03:30 PM IST throughVideoConferencing (“VC”) /OtherAudio-VisualMeans(“OAVM”)totransactthefollowingbusiness:ORDINARY BUSINESS:

1. To receive, consider and adopt the Audited StandaloneandConsolidatedFinancialStatementsof theCompanyfortheFinancialYearendedMarch31,2020togetherwiththeReports of theBoard ofDirectors and theAuditorsthereon.

2. To declare Dividend on Equity Shares for the FinancialYear2019-2020.

3. ToappointaDirectorinplaceofSmt.SangeetaSharma(DIN:07969443)whoretiresbyrotationatthismeetingand being eligible, offers herself for re-appointment.

4. To fix remuneration of Auditors for the Financial Year2020-21.

SPECIAL BUSINESS:

5. Appointment of Shri Pramod Kumar Panda (DIN: 08150489) as a Non-official Part time (Independent) Director of the Company.To consider and if thought fit, to pass with or withoutmodification(s) the following resolution as an OrdinaryResolution:RESOLVED THAT pursuant to the provisions of Sections 149,152,161andotherapplicableprovisions,ifany,oftheCompaniesAct,2013andRulesmadethereunder,Article125of theArticlesofAssociationof theCompanyandother relevant applicable regulations of the Securities and ExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015,asamendedfromtimetotime,ShriPramodKumarPanda(DIN:08150489),whowasappointedasAdditionalDirectoroftheCompanybytheBoardofDirectorswitheffectfromOctober18,2019andwhoholdsthesaidofficepursuanttotheprovisionsofSection161oftheCompaniesAct,2013uptothedateofthisAnnualGeneralMeetingorthelastdateonwhichtheAnnualGeneralMeetingfortheFinancialYear2019-2020shouldhavebeenheld,whicheverisearlierandwhois eligible for appointment under the relevant provisions

oftheCompaniesAct,2013andinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromaMembersignifying his intention to propose him as a candidate for theofficeof the IndependentDirector,beand isherebyappointed as a Non-official Part time (Independent)DirectoroftheCompany,notliabletoretirebyrotation.

6. Appointment of Shri Atul Ubale (DIN:08630613) as a Whole-time Director.

To consider and if thought fit, to pass with or withoutmodification(s) the following resolution as an OrdinaryResolution:

RESOLVED THAT pursuant to the provisions of Sections 149,152,161andotherapplicableprovisions,ifany,oftheCompaniesAct,2013andRulesmade thereunder ,Article125oftheArticlesofAssociationoftheCompanyand relevant applicable regulations of the Securities and ExchangeBoardofIndia(ListingObligationsandDisclosureRequirements) Regulations, 2015, as amended fromtimetotime,ShriAtulUbale(DIN:08630613),whowasappointedasDirectoroftheCompanybytheGovernmentof India on November 11, 2019 and as an AdditionalDirectorof theCompanybytheBoardofDirectorswitheffectfromDecember05,2019i.eonhisobtainingDINandwhoholdsthesaidofficepursuanttotheprovisionsofSection161oftheCompaniesAct,2013uptothedateofthisAnnualGeneralMeetingorthelastdateonwhichtheAnnualGeneralMeetingfortheFinancialYear2019-2020shouldhavebeenheld,whicheverisearlierandwhois eligible for appointment under the relevant provisions oftheCompaniesAct,2013andinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromaMembersignifying his intention to propose him as a candidate for theofficeoftheDirector,beandisherebyappointedasDirectoroftheCompany,liabletoretirebyrotation.

By Order of the Board of Directors

for The Shipping Corporation of India Ltd. Dipankar Haldar

Executive Director (Legal Affairs) & Company Secretary

Registered Office: ShippingHouse,245,MadameCamaRoad,Mumbai–400021.Dated:07.08.2020


NOTICE OF MEETING

NOTES1. In viewof the continuing restrictions on themovement

ofpeopleatseveralplaces,duetooutbreakofCOVID-19pandemic, theMinistry of Corporate Affairs(“MCA”)hasvideitscircularNo.20/2020datedMay05,2020readwithcircularsNo.14/2020datedApril08,2020andCircularNo.17/2020datedApril13,2020(collectivelyreferredtoas“MCACirculars”)permittedtheholdingoftheAnnualGeneralMeeting(“AGM”)throughVC/OAVM,withoutthephysical presence of the Members at a common venue. IncompliancewiththeprovisionsoftheCompaniesAct,2013 (“Act”), SEBI (Listing Obligations and DisclosureRequirements) Regulations, 2015 (“SEBI LODR,2015”)andMCACirculars, the AGMof the Company is beingheldthroughVC/OAVM.ThedeemedvenuefortheAGMwillbetheplacefromwheretheChairpersonoftheBoardconducts the Meeting.

2. Statementpursuanttosection102(1)oftheCompaniesAct,2013isannexedandformspartofthisnotice.

3. The relevantdetails, pursuant toRegulations26(4) and36(3)oftheSEBI(LODR),2015andSecretarialStandardsontheGeneralMeetingsissuedbytheInstituteofCompanySecretariesofIndia(ICSI)inrespectofDirectorsseekingre-appointmentatthisAGMisannexed.

4. Since this AGM is being held pursuant to the MCACirculars throughVC/OAVM,physical attendanceof themembers has been dispensed with. Accordingly, the facility for appointment of proxies by the Members will notbeavailable for theAGMandhence theproxy formandAttendanceSliparenotannexedtothisNotice.

5. A person who is not a member as on cut-off date of remotee-voting i.eFriday,September11,2020,shouldtreat the notice for information purpose only.

6. MembersattendingtheAGMthroughVC/OAVMshallbecountedforthepurposeofreckoningthequorumunderSection103oftheAct

7. President of India/ Institutional/ Corporate Shareholders(i.eotherthanindividuals/HUF/NRI,etc)arerequiredtosendascannedcopy(PDF/JPGformat)of itsdecision/Board or governing bodyResolution/ Authorisation etc,authorizingitsrepresentativetoattendtheAGMthroughVC/OAVM on its behalf and to vote through remotee-voting.ThesaidResolution/Authorisationshallbesentto the Company by email through its registered emailaddress at [email protected] with a copy marked to [email protected]:00pm(IST).

8. TheRegisterofMembersandtheShareTransferBooksoftheCompanywillremainclosedfromtoFriday,September11,2020toFriday,September18,2020(boththedaysinclusive).

9. The Members, whose names appear in the Registerof Members / list of Beneficial Owners as onThursday, September 10, 2020 i.e. the date prior tothe commencement of book closure, will be paid the Dividendforthefinancialyearended31stMarch,2020,asrecommendedbytheBoard,ifapprovedattheAGM.

10. TheDividend,onceapprovedbytheshareholdersintheensuingAGMwillbepaidwithin30daysfromthedateofAGMelectronicallythroughvariousonlinetransfermodesto those shareholders who have updated bank account details.Forshareholderswhohavenotupdatedtheirbankdetails,dividendwarrants/demanddrafts/chequeswillbe sent out to their registered address once the postal facility is available. To avoid delay in receiving dividend, shareholders are requested toupdate theirBankdetailsandKYCwithourRTA

11. AsperRegulation40ofSEBILODR,2015,asamended,securities of listed companies can be transferred only in dematerialized form with effect from, April 1, 2019,except in case of request received for transmission ortransposition of securities. In view of this and to eliminate all risks associated with physical shares and for ease of portfolio management, members holding shares in physicalformarerequestedtoconsiderconvertingtheirholdings to dematerialized form.Members can contacttheRTA,M/sBigshareServicesPvtLtdforassistanceinthisregardonTel:022-62638200.

12. To support the ‘Green Initiative’, Members who havenot yet registered their email addresses are requestedto register the samewith their DPs in case the sharesare held by them in electronic form and with RTA in case the shares are held by them in physical form. The detail process regarding the registration is mentioned under SerialNo.21ofthisNotice.

13. Members are requested to intimate changes, if any,pertaining to their name, postal address, email address, telephone/mobilenumbers,PermanentAccountNumber(PAN),mandates,nominations,powerofattorney,bankdetails such as, name of the bank and branch details, bank account number, MICR code, IFSC code, or anyotherKYCdetails, etc., to theirDPs in case the sharesare held by them in electronic form and to the RTA of the Companyincasethesharesareheldinthephysicalform.


Members are requested to notify any change in theiraddress to the Registrars and Transfer Agents (“RTA”)of the Company at the following address - BigshareServicesPvtLtd., 1st Floor,BharatTinWorksBuilding,Opp.VasantOasis,MakwanaRoad,Marol,AndheriEast,Mumbai-400059,Maharashtra, Tel:022-62638200, Fax:022-62638299, or at Email: [email protected]

14. Members are requested to note that, dividends if notencashed for a consecutive period of 7 years from the date oftransfertoUnpaidDividendAccountoftheCompany,are liable to be transferred to the Investor Education and ProtectionFund(“IEPF”).Thesharesinrespectofsuchunclaimed dividends are also liable to be transferred to thedemataccountoftheIEPFAuthority.Inviewofthis,MembersarerequestedtoclaimtheirdividendsfromtheCompany,withinthestipulatedtimeline.

15. In compliance with the aforesaid MCA Circulars andSEBI Circular datedMay 12, 2020, Notice of the AGMalong with the Annual Report 2019-20 is being sentonly through electronic mode to those Members holding shares of theCompany as on Friday,August 07, 2020and whose email addresses are registered. Members may note that the Notice and Annual Report 2019-

20 will also be available on the Company’s website www.shipindia.com, websites of the Stock Exchanges i.e. BSE Limited and National Stock Exchange of IndiaLimited at www.bseindia.com and www.nseindia.com respectively, and on the website of NSDL https://www.evoting.nsdl.com. Any person acquiringsharesafterFriday,August07,2020andholdingsharesasonthecloseofthebusinesshoursofFriday,September11, 2020 may visit SCI’s website www.shipindia.com under‘FinancialResults Annual Reports’ section.

16. Taxability and Other Dividend Related Informationa) AspertheIncomeTaxAct,1961(“ITAct”),asamended

by the FinanceAct,2020,dividendspaidordistributedbyaCompanyafterApril1,2020shallbetaxableinthehandsoftheshareholders.TheCompanyshallthereforeberequiredtodeducttaxatsourceattheapplicableratesat the time of making the payment of the Dividend, ifdeclaredattheAGM.

b) The TDS rate may vary depending on the residentialstatus of the shareholder and the documents submitted by the shareholders and accepted by the Company inaccordancewith theprovisionsof theAct.TheTDSforvarious categories of shareholders along with requireddocumentsaresummarizedbelow:

Table 1: Resident Shareholders

Particulars & Category of shareholders Rate of Tax Deduction

Exemption documents to be given

Resident IndividualsIftotalDividendincometoaresidentindividualshareholderinFY2020-21>Rs.5,000

- 7.5% in case wherePANis

provided/available-20%,inother

caseswherePANisnotprovided/not

available

UpdatethePANifnotalreadydonewithdepositaries,in case of shares held in demat mode and with the Company's Registrar and Transfer Agents –BigshareServicesPvtLtd(“RTA”),incaseofsharesheld in physical mode.

ShareholdersprovidingdulysignedForm15G(applicabletoanypersonotherthanaCompanyoraFirm)/15H(applicabletoanIndividualabovetheageof60years)providedthatallthe prescribed eligibility conditions are met.

NIL Form 15G/15H duly signed – The formsare available on the website of RTA at https://www.bigshareonline.com/Resources.aspx

IftotalDividendincometoaresidentindividualshareholderinFY2020-21<Rs.5,000

NIL -

Resident - Other than IndividualsIndianCommercialBanks/IndianFinancialInstitutions 7.5% -Insurance Companies: LIC & Other Insurance Companiessuch as GIC/United India Insurance Co/Oriental InsuranceCo/NewIndiaAssuranceCo,etcasprovidedunderSecondProvisotosection194ofITAct

NIL AdeclarationthatithasafullbeneficialinterestwithrespecttothesharesownedbyitalongwithPAN.

NOTICE OF MEETING


NOTICE OF MEETING

Particulars & Category of shareholders Rate of Tax Deduction

Exemption documents to be given

Govtof India,CorporationestablishedbyorunderaCentralAct which is, under any law for the time being in force, exempt fromincome-taxonitsincome(Section196)

NIL Self-declarationspecifyingthespecificCentralActunder which such corporation is established and that their income is exempt under the provisions ofIncomeTaxAct,1961alongwithaself-attestedcopyofthePANcardandregistrationcertificate.

MutualFunds NIL Self-declarationthattheyarespecifiedandcoveredundersection10(23D)oftheIncomeTaxAct,1961along with a self-attested copy of PAN card andregistrationcertificate.

7.5% In case of mutual funds not covered under section 10(23D)oftheIncomeTaxAct,1961

AlternativeInvestmentFund NIL Self-declaration that its income is exempt under Section10(23FBA)oftheIncomeTaxAct,1961andtheyaregovernedbySEBIregulationsasCategoryIorCategoryIIAIFalongwithaself-attestedcopyofthePANcardandregistrationcertificate.

7.5% IncaseAIFotherthanthoseregisteredwithSEBIasperSection115UBoftheITAct.

Orderundersection197oftheITAct Rate provided in the order

Lower/NILwithholdingtaxcertificateobtainedfromIncome Tax authorities.

OtherresidentshareholderwithoutPAN/InvalidPAN 20% -

Please Note that:a) Recording of the valid Permanent Account Number (PAN) for the registered Folio/DP id-Client Id is mandatory. In

absence of valid PAN, tax will be deducted at a higher rate of 20% as per Section 206AA of the IT Act.b) Shareholders holding shares under multiple accounts under different status / category and single PAN, may note that,

higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts

Table 2: Non-resident Shareholders TaxisrequiredtobewithheldinaccordancewiththeprovisionsofSection195oftheIncomeTaxAct,1961atapplicableratesinforce.Asperthesaidprovisions,thetaxshallbewithheld@20%plusapplicablesurchargeandcessontheamountofdividendpayable.However,asperSection90oftheIncomeTaxAct,1961,anon-residentpayeehastheoptiontobegovernedbytheprovisionsoftheDoubleTaxAvoidanceAgreement(DTAA)betweenIndiaandthecountryoftaxresidenceoftheshareholder,iftheyaremorebeneficialtotheshareholder.Forthispurpose,i.e.toavailtheDTAAbenefits,thenon-residentshareholderwillhave to provide documents provided in the following table:


Category of shareholder Tax Deduction Rate

Exemption applicability/ Documentation requirement

Any non-resident shareholder (This includes Foreign Companies, BodiesCorporate,NRI,ForeignNationalsandother foreign entities)

20%(plusapplicable

surcharge and cess) or Tax Treaty rate

whichever is lower

Non-residentshareholdersmayoptfortaxrateunderDoubleTaxationAvoidanceAgreement("TaxTreaty")asperSection90oftheIncometaxAct,1961.TheTax Treaty rate shall be applied for tax deduction at source on submission of following documents to the RTA;• CopyofthePANCard,ifany,allottedbytheIndianauthorities.• Self-attested copy of Tax Residency Certificate (TRC) valid as on theAGMdateobtained from the tax authoritiesof thecountryofwhich theshareholder is resident.

• Self-declaration in Form 10F available on RTA website at https://www.bigshareonline.com//docs/Form_10F.pdf

• Self-declaration by the shareholder of having no permanent establishment in India in accordance with the applicable tax treaty

• Self-declarationofbeneficialownershipbythenon-residentshareholder• Any other documents as prescribed under the IT Act for lower withholding

of taxes if applicable, duly attested by memberTDSshallberecoveredat20%(plusapplicablesurchargeandcess)ifanyofthe above-mentioned documents are not provided. However, theCompany in its solediscretion reserves the right toapply thebeneficial DTAA rates at the time of tax deduction/withholding on dividendamounts and to call for any further information. Application of DTAA rateshalldependuponthecompletenessofthedocumentssubmittedbytheNon-ResidentshareholderandreviewtothesatisfactionoftheCompany.

ForeignInstitutionalInvestors,ForeignPortfolioInvestors(FII,FPI)

20%(plusapplicable

surcharge and cess)

None(TreatybenefitnotavailabletoFII/FPI).TDSrateshallnotbereducedonaccountoftheapplicationoftheLowerDTAArateorlowertaxdeductionorder,if any

SubmittingOrderundersection197of the IT Act

Rate provided in the Order

Lower/NILwithholdingtaxcertificateobtainedfromIncomeTaxauthorities.

Note: The Shareholders holding shares under multiple accounts under different status / category and single PAN, may note that, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts.PROCEDURE FOR SUBMISSION OF DOCUMENTS:Form 15G/15H/10F are available on the website of our RTA, Bigshare Services Private Limited. The same can be downloaded from Bigshare Services Private Limited’s website https://www.bigshareonline.com/Resources.aspx The above mentioned documents (dulycompletedandsigned)are required tobeuploadedathttps://www.bigshareonline.com/dividendTDS.aspx. TheCompanyhassharedlinksofthisformsaswellaslinkforuploadingthedocuments/formsviaSMSwiththoseShareholdersholdingsharesoftheCompanyasonFriday,August07,2020andhavingtheirMobileNumberregisteredwiththeCompany.Shareholderscanalsosendtheirdulysignedtaxdeclarationsorcommunications/queriestocompany’[email protected],inordertoenableustodeterminetheappropriateTDS/withholdingtaxrateapplicable,werequestyoutoprovide/uploadthesedetailsanddocumentsasmentionedabovebeforeFriday,September04,2020.Incompleteand/orunsignedformsanddeclarationswillnotbeconsideredbytheCompany.Nocommunication/documentsonthetaxdetermination/deductionshallbeconsideredpostFriday,September04,2020.Further, shareholders who have not registered their email address are requested to register the same with our RTA.Shareholders are further requested to complete necessary formalitieswith regard to their Bank accounts attached to theirDemataccountforenablingtheCompanytomaketimelycreditofdividendinrespectivebankaccountespeciallyinviewofCOVID19pandemic.Shareholdercanupdatetheiremailids/Bankdetails/MobileNumberonlineatcompany’sRTAwebsiteat https://www.bigshareonline.com/InvestorRegistration.aspx The detailed steps regarding the registration are mentioned under serialnumber21.

NOTICE OF MEETING


It may be further noted that in case the tax on said dividend is deducted at a higher rate in absence of receipt of the aforementioned details/documentsfromyou,therewouldstillbeanoptionavailablewithyoutofilethereturnofincomeandclaimanappropriaterefund,ifeligible.NoclaimshalllieagainsttheCompanyforsuchtaxesdeducted.17.SincetheAGMwillbeheldthroughVC/OAVM,theRouteMapisnotannexedinthisNotice.18.TheRegistersoftheDirectorsandKeyManagerialPersonnelandtheirshareholdingunderSection170oftheCompaniesAct,2013andotherstatutorydocuments,willonlybemadeavailableforinspectiontothemembersontheirrequesttotheCompanyatcs@sci.co.inmentioningtheirname,foliono./clientIDandDPID,andthedocumentstheywishtoinspect,withaself-attestedcopyoftheirPANcardattachedtotheemail.

19.Instructionsfore-votingandjoiningtheAGMareasfollows:20. VOTING THROUGH ELECTRONIC MEANSI. Incompliancewith theprovisionsofSection108of theAct, readwithRule20of theCompanies(ManagementandAdministration)Rules,2014,asamended from time to time,andRegulation44of theSEBIListingRegulations, theMembersareprovidedwiththefacilitytocasttheirvoteelectronically,throughthee-votingservicesprovidedbyNSDL,onalltheresolutionssetforthinthisNotice.Theinstructionsfore-votingaregivenhereinbelow.

II. The remote e-voting period commences on Tuesday, September 15, 2020 (9:00 a.m. IST) and ends on Thursday,September17,2020(5:00p.m.IST).Duringthisperiod,Membersholdingsharesasoncut-offdatei.eFriday,September11,2020eitherinphysicalformorindematerializedformmaycasttheirvoteelectronically.Thee-votingmoduleshallbedisabledbyNSDLforvotingthereafter.ThoseMembers,whowillbepresentintheAGMthroughVC/OAVMfacilityandhave not cast their vote on the Resolutions through remote e-voting and are otherwise not barred from doing so, shall be eligibletovotethroughe-votingsystemduringtheAGM.

III. TheBoardofDirectorshasappointedShriUpendraShukla(MembershipNo.FCS2727),PracticingCompanySecretaryastheScrutinizertoscrutinizethevotingduringtheAGMandremotee-votingprocessinafairandtransparentmanner.

IV. TheMemberswhohavecasttheirvotebyremotee-votingpriortotheAGMmayalsoattend/participateintheAGMthroughVC/OAVMbutshallnotbeentitledtocasttheirvoteagain.

V. ThevotingrightsofMembersshallbeinproportiontotheirsharesinthepaid-upequitysharecapitaloftheCompanyason the cut-off date.

VI.Anyperson,whoacquiressharesoftheCompanyandbecomesaMemberoftheCompanyaftersendingoftheNoticeandholdingsharesasonthecloseofthebusinesshoursofFriday,September11,2020,mayobtaintheloginIDandpasswordbysendingarequestatevoting@nsdl.co.in.However,ifhe/shearealreadyregisteredwithNSDLforremotee-votingthenhe/shecanusehis/herexistingUserIDandpasswordforcastingthevote.

VII.Thedetailsoftheprocessandmannerforremotee-votingareexplainedhereinbelow:How to vote electronically using NSDL e-Voting systemThewaytovoteelectronicallyonNSDLe-Votingsystemconsistsof“TwoSteps”whicharementionedbelow:Step 1: Log-in to NSDL e-Voting system at https://www.evoting.nsdl.com/Step 2: Cast your vote electronically on NSDL e-Voting system.Details on Step 1 is mentioned below:

NOTICE OF MEETING


How to Log-in to NSDL e-Voting websiteI. Visitthee-VotingwebsiteofNSDL.OpenwebbrowserbytypingthefollowingURL:https://www.evoting.nsdl.com/eitheronaPersonalComputeroronamobile.

II. Oncethehomepageofe-Votingsystemislaunched,clickontheicon“Login”whichisavailableunder‘Shareholders’section.III. Anewscreenwillopen.YouwillhavetoenteryourUserID,yourPasswordandaVerificationCodeasshownonthescreen. Alternatively,ifyouareregisteredforNSDLeservicesi.e.IDEAS,youcanlog-inathttps://eservices.nsdl.com/withyourexistingIDEASlogin.Onceyoulog-intoNSDLeservicesafterusingyourlog-incredentials,clickone-VotingandyoucanproceedtoStep2i.e.Castyour vote electronically.

IV. YourUserIDdetailsaregivenbelow:

Manner of holding shares i.e. Demat (NSDL or CDSL) or Physical

Your User ID is:

a)ForMemberswhoholdsharesindemataccountwithNSDL. 8CharacterDPIDfollowedby8DigitClientIDForexample,ifyourDPIDisIN300***andClientIDis12******thenyouruserIDisIN300***12******.

b)ForMemberswhoholdsharesindemataccountwithCDSL. 16DigitBeneficiaryIDForexample,ifyourBeneficiaryIDis12**************thenyouruserIDis12**************

c)ForMembersholdingsharesinPhysicalForm. EVEN Number followed by Folio Number registered with thecompanyForexampleiffolionumberis001***andEVENis101456thenuserIDis101456001***

V. Yourpassworddetailsaregivenbelow:a) Ifyouarealreadyregisteredfore-Voting,thenyoucanuseyourexistingpasswordtologinandcastyourvote.b) IfyouareusingNSDLe-Votingsystemforthefirsttime,youwillneedtoretrievethe‘initialpassword’whichwascommunicatedto

you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ and the system will force you to change your password.

c) How to retrieve your ‘initial password’(i) IfyouremailIDisregisteredinyourdemataccountorwiththecompany,your‘initialpassword’iscommunicatedtoyouonyouremailID.TracetheemailsenttoyoufromNSDLfromyourmailbox.Opentheemailandopentheattachmenti.e.a.pdffile.Openthe.pdffile.Thepasswordtoopenthe.pdffileisyour8digitclientIDforNSDLaccount,last8digitsofclientIDforCDSLaccountorfolionumberforsharesheldinphysicalform.The.pdffilecontainsyour‘UserID’andyour‘initialpassword’.

(ii) IfyouremailIDisnotregistered,pleasefollowstepsmentionedbelowinprocessforthoseshareholderswhoseemailidarenotregistered.

VI. Ifyouareunabletoretrieveorhavenotreceivedthe“Initialpassword”orhaveforgottenyourpassword:a) Clickon“ForgotUserDetails/Password?”(IfyouareholdingsharesinyourdemataccountwithNSDLorCDSL)optionavailableon

www.evoting.nsdl.com.b) "PhysicalUserResetPassword?”(Ifyouareholdingsharesinphysicalmode)optionavailableonwww.evoting.nsdl.com.c) Ifyouarestillunabletogetthepasswordbyaforesaidtwooptions,youcansendarequestatevoting@nsdl.co.inmentioningyourdemataccountnumber/folionumber,yourPAN,yournameandyourregisteredaddress.

d) MemberscanalsousetheOTP(OneTimePassword)basedloginforcastingthevotesonthee-VotingsystemofNSDLVII. Afterenteringyourpassword,tickonAgreeto“TermsandConditions”byselectingonthecheckbox.VIII. Now,youwillhavetoclickon“Login”button.IX. Afteryouclickonthe“Login”button,Homepageofe-Votingwillopen.

Details on Step 2 are given below:How to cast your vote electronically on NSDL e-Voting system?I. AftersuccessfulloginatStep1,youwillbeabletoseetheHomepageofe-Voting.Clickone-Voting.Then,clickonActiveVotingCycles.II. AfterclickonActiveVotingCycles,youwillbeabletoseeallthecompanies“EVEN”inwhichyouareholdingsharesandwhosevoting

cycle is in active status.III. Select“EVEN”ofcompanywhichis113581.IV. Nowyouarereadyfore-VotingastheVotingpageopens.

NOTICE OF MEETING


V. Castyourvotebyselectingappropriateoptionsi.e.assentordissent,verify/modifythenumberofsharesforwhichyouwishtocastyourvoteandclickon“Submit”andalso“Confirm”whenprompted.

VI. Uponconfirmation,themessage“Votecastsuccessfully”willbedisplayed.VII. Youcanalsotaketheprintoutofthevotescastbyyoubyclickingontheprintoptionontheconfirmationpage.VIII.Onceyouconfirmyourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.General Guidelines for shareholdersI. President of India/Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/

JPGFormat)of therelevantDecision/BoardResolution/Authority letteretc.withattestedspecimensignatureof thedulyauthorizedsignatory(ies)whoareauthorizedtovote,[email protected]@nsdl.co.in.

II. Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.Logintothee-votingwebsitewillbedisableduponfiveunsuccessfulattemptstokeyinthecorrectpassword.Insuchanevent,youwillneedtogothroughthe“ForgotUserDetails/Password?”or“PhysicalUserResetPassword?”optionavailableonwww.evoting.nsdl.com to reset the password.

III. Incaseofanyqueries,withrespecttoremotee-votingore-votingattheAGM,youmayrefertheFrequentlyAskedQuestions(FAQs)forShareholders and e-voting user manual for Shareholders available at the download section of www.evoting.nsdl.com or call on toll free no.:[email protected]

IV. Further,pleasefindbelowdetailsofNSDLofficialsforqueries:Mr.AmitVishal,SeniorManager–NSDL,[email protected],Manager,[email protected]

21. Manner of updating Mobile Numbers, Bank Account and Email addresses.Byfollowinganyofthebelowmentionedprocess,theshareholdersarerequestedtoupdatetheirMobileNumbers,EmailaddressesandBankAccountDetailsinordertoreceive:• E-Notice,AnnualReportandallotherelectroniccommunicationrelatingtotheconductoftheAGM.• DividenddirectlyintheBankAccounts.

I. ThoseshareholdersholdingsharesintheDematFormcanupdatetheirMobileNumber,EmailaddressesandBankAccountdetailswiththeirrelevantDepositoriesthroughtheirDepositoryParticipants.ThoseshareholdersholdingsharesinthePhysicalForm,arerequestedtofurnishthedetailsofmobilenumber,emailaddressesandbankaccountdetailstotheCompany'sRegistrarandShareTransferAgent(RTA)atfollowingaddress-BigshareServicesPvtLtd.,1stFloor,BharatTinWorksBuilding,Opp.VasantOasis,MakwanaRoad,Marol,Andheri East,Mumbai-400059,Maharashtra, Tel:022-62638200, Fax:022-62638299or at Email: [email protected],folionumber,scannedcopyofthesharecertificate(frontandback)andselfattestedcopyofPANCard.FollowingadditionaldetailstobeprovidedforupdatingBankAccountforreceivingDividend.(i) NameandbranchoftheBank(ii) TheBankAccounttype(iii) Bankaccountnumber(iv) 9DigitMICRNumber(v) 11DigitIFSCCode(vi) Scannedcopyofthecancelledchequebearingthenameofthefirstshareholder.

II. Company has also provided the SMS facility, underwhich those shareholderswho have registered theirmobile numberswith theCompanyandholdingsharesof theCompanyasonFriday,August07,2020will receiveSMSon their registeredmobilenumbers.TheshareholderswillbedirectlyroutedtothewindowofupdationofEmailaddressesandBankAccountdetailsbyaccessingtheURLprovided in the SMS .

III. ThoseshareholderswhohavenotreceivedSMSfromtheRTAbutholdingthesharesoftheCompanyonFriday,September11,2020,canaccess thisURLatRTA’websiteathttps://www.bigshareonline.com/InvestorRegistration.aspx forupdating theirMobileNumber,EmailaddressesandBankAccountDetails.

IV. TheshareholderscanalsosendthedetailsofMobileNumber,EmailaddressesandBankAccountalongwithotherdetailsanddocumentsmentioned at Sr no.(I) above directly to the RTA at [email protected]

22. THE INSTRUCTIONS FOR MEMBERS FOR e-VOTING ON THE DAY OF THE AGM ARE AS UNDER:-I. Theprocedurefore-VotingonthedayoftheAGMissameastheinstructionsmentionedaboveforremotee-voting.II. OnlythoseMembers/shareholders,whowillbepresentintheAGMthroughVC/OAVMfacilityandhavenotcastedtheirvoteontheResolutionsthroughremotee-Votingandareotherwisenotbarredfromdoingso,shallbeeligibletovotethroughe-VotingsystemintheAGM.

NOTICE OF MEETING


III. MemberswhohavevotedthroughRemotee-VotingwillbeeligibletoattendtheAGM.However,theywillnotbeeligibletovoteattheAGM.IV. Thedetailsofthepersonswhomaybecontactedforanygrievancesconnectedwiththefacilityfore-VotingonthedayoftheAGMshall

be the same persons mentioned for remote e-voting.23. INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE AGM THROUGH VC/OAVM ARE AS UNDER:I. MemberwillbeprovidedwithafacilitytoattendtheAGMthroughVC/OAVMthroughtheNSDLe-Votingsystem.Membersmayaccessthesameathttps://www.evoting.nsdl.comundershareholders/membersloginbyusingtheremotee-votingcredentials.ThelinkforVC/OAVMwillbeavailableinshareholder/membersloginwheretheEVENofCompanywillbedisplayed.PleasenotethatthememberswhodonothavetheUserIDandPasswordfore-VotingorhaveforgottentheUserIDandPasswordmayretrievethesamebyfollowingtheremotee-VotinginstructionsmentionedintheNoticetoavoidlastminuterush.FurthermemberscanalsousetheOTPbasedloginforloggingintothee-VotingsystemofNSDL.

II. Facility of joining theAGM throughVC /OAVMshall open2hoursbefore the timescheduled for theAGMandshall be kept openthroughouttheproceedingsoftheAGM.

III. MemberswhoneedassistancebeforeorduringtheAGM,cancontactNSDLoncallontollfreeno.:[email protected],pleasefindbelowdetailsofNSDLofficialsforqueries:Mr.AmitVishal,SeniorManager–NSDL,[email protected],Manager,[email protected].

IV. MemberswhowouldliketoexpresstheirviewsoraskquestionsduringtheAGMmayregisterthemselvesasaspeakerbysendingtheirrequestfromtheirregisteredemailaddressmentioningtheirname,DPIDandClientID/folionumber,PAN,mobilenumber,[email protected] fromFriday,September04,2020(9:00a.m. IST) toFriday,September11,2020(5:00p.m. IST).ThoseMemberswhohaveregisteredthemselvesasaspeakerwillonlybeallowedtoexpresstheirviews/askquestionsduringtheAGM.TheCompanyreserves the right to restrict thenumberofspeakersdependingon theavailabilityof time for theAGM.TheCompanymayrespondsuitablytothoseshareholderswhohadsentrequesttotheCompanytoexpresstheirviews/questionsbutduetopaucityoftimedidnotgetopportunitytoaskquestionsduringAGM.

V. MembersareencouragedtojointheMeetingthroughLaptopsforbetterexperience.VI. FurtherMemberswillberequiredtoallowCameraanduseInternetwithagoodspeedtoavoidanydisturbanceduringthemeeting.VII.InstitutionalMembersareencouragedtoattendandvoteattheAGMthroughVC/OAVM.IncaseanyInstitutionalMembers,facingissuesforparticipatinginAGMcancontactNSDLoncallontollfreeno.:[email protected],pleasefindbelowdetailsofNSDLofficialsforqueries:Mr.AmitVishal,SeniorManager–NSDL,[email protected],Manager,[email protected]

VIII.PleasenotethatParticipantsConnectingfromMobileDevicesorTabletsorthroughLaptopconnectingviaMobileHotspotmayexperienceAudio/VideolossduetoFluctuationintheirrespectivenetwork.ItisthereforerecommendedtouseStableWi-FiorLANConnectiontomitigate any kind of aforesaid glitches.

24. Other Instructions I. TheScrutinizershall,immediatelyaftertheconclusionofvotingattheAGM,firstcountthevotescastduringtheAGM,thereafterunblockthevotescastthroughremotee-votingandmake,notlaterthan48hoursofconclusionoftheAGM,aconsolidatedScrutinizer’sReportofthetotalvotescastinfavouroragainst,ifany,andsubmitthereporttotheChairpersonorapersonauthorisedbyherinwriting,whoshall countersign the same.

II. TheresultdeclaredalongwiththeScrutinizer’sReportshallbesubmittedtoNationalStockExchangeofIndiaLimitedandBSELimited,wherethesharesoftheCompanyarelistedandshallalsobeplacedontheCompany’swebsitewww.shipindia.comandonthewebsiteofNSDLhttps://www.evoting.nsdl.comimmediately.

Dipankar Haldar Executive Director (Legal Affairs) &

Company SecretaryRegistered Office:ShippingHouse,245,MadameCamaRoad,Mumbai–400021Date:07.08.2020

NOTICE OF MEETING


ANNEXURE TO THE NOTICE EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013Item No. 5 of the NoticeThefollowingexplanatorystatementsetsoutallthematerialfactsrelatingtospecialbusinessmentionedinItemNo.5oftheaccompanyingnoticedated07.08.2020conveningthe70thAnnualGeneralMeetingoftheCompany.TheBoardofDirectorsoftheCompanyappointedShriPramodKumarPandaasanAdditionalDirector(Independent)oftheCompanywitheffectfrom18.10.2019,pursuanttotheprovisionsofSection161(1)oftheActandArticle125oftheArticlesofAssociationoftheCompany.IntermsoftheprovisionsofSection161(1)oftheAct,ShriPramodKumarPandawouldholdofficeuptothedateoftheensuingAnnualGeneralMeeting.TheCompanyhasreceivedanoticeinwritingfromaMemberunderSection160oftheAct,proposinghiscandidaturefortheofficeofDirectoroftheCompany.TheCompanyhasreceivedfromShriPramodKumarPanda(i)intimationinFormDIR-8intermsofCompanies(Appointment&QualificationofDirectors)Rules,2014totheeffectthatheisnotdisqualifiedunderSub-Section(2)ofSec.164oftheCompaniesAct,2013;and(ii)adeclarationtotheeffectthathemeetsthecriteriaofindependenceasprovidedinsub-Section6ofSec.149oftheCompaniesAct,2013andRegulation16oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.IntheopinionoftheBoardofDirectors,ShriPramodKumarPanda,proposedtobeappointedasanIndependentDirector,fulfilstheconditionsspecifiedintheActandtheRulesmadethereunderandheisindependentofthemanagement.Saveandexcepttheabove,noneoftheotherDirectors/KeyManagerialPersonneloftheCompany/theirrelativesare,inanyway,concernedorinterested,financiallyorotherwise,inthisresolution.ThisstatementmayalsoberegardedasanappropriatedisclosureundertheListingRegul

7 th nna report 219 22 the shipping corporation of india ...m/s haribhakti & co. llp *m/s g.d. apte...

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