Essar Shipping Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. The above financial results were reviewed by the Audit Committee and approved by the Board of Directors at the meeting held on 31st January, 2019. The Statutory Auditors have carried out a Limited Review of the above results.

2. The Company has only one reportable business segment of Fleet Operating and Chartering.

3. Evaluation of impairment of Company's investments in certain subsidiary companies, as per Ind AS 36 "Impairment of assets", is being assessed and the impact, will be considered at the year end.

4. During the previous year 2017-18, the Company has recognized income from an Arbitration Award along with interest accrued thereon amounting to Rs. 369.81 crore. The dispute in this regard has been adjudged in favour of the Company by the Arbitrator. On the direction of the Supreme Court, the contractor has deposited 50% of the awarded amount, pending disposal of the case. The interest on the awarded amount for the current period of nine months will be considered on final adjudication of the case.

5. The net exchange loss of current nine months period is Rs. 42.23 crore as compared to net exchange gain of Rs. 7.25 crore in the corresponding previous period of nine months.

6. Two vessels which could not be deployed, have significantly impacted the revenue of the Company for the nine months. These vessels would be back into operation from the 4th quarter.

7. The figures of the previous period(s) / year have been regrouped / reclassified wherever necessary.

Rahul Bhargava