The Shipping Corporation of India Ltd.

1. The Shipping Corporation of India Ltd.

2. AGENDA FOR WORKSHOP ON PENSION SCHEMES • INTRODUCTION TO SCI • DPE GUIDELINES 26/11/08 and 2/4/09 • PRESIDENTIAL DIRECTIVES TO SCI 1/5/09 • WAY FORWARD & PRESENT SCHEMES

3. HISTORY • The Shipping Corporation of India Ltd. was incorporated on 2.10.1961 by amalgamation of Eastern & Western Shipping Corporation. • As on 2.10.1961, SCI fleet stood at 19 vessels with 0.192 million DWT constituting about 14% of Indian tonnage. • Fleet of 19 vessels at inception comprised of: 15 Liner Cargo ships 2 Product Tankers 2 Passenger-cum-cargo ships

4. SCI – A Navratna CPSE • A Navratna CPSE, ISO 9001: 2008 & Ir AA+ rating from ICRA • Today SCI is India’s largest and most diversified shipping company having about 35% share in Indian tonnage - owns 80 vessels of 5.85 million DWT & manages 38 vessels on behalf of other agencies. • For the past fifty years, SCI has been providing yeoman service to the country’s economy by meeting the ocean transportation requirements. • Presence in all the segments of shipping including Dry Bulk, Tanker, Container, Offshore segments . • Consistent track record of profitability & dividend till fiscal 2010-11. • ‘Excellent’ rating under the MOU system consecutively for the last 20 years • Corporate network spanning the 4 metros of India as well as office at London • Supported further by a strong agents network worldwide

5. Fleet 80 vessels – 5.85 million DWT

6. Fleet - Managed & Manned

7. Our Business • Provides Integrated shipping solution to the Indian oil industry – carriage of crude oil imports, lighterage, coastal movement & storage duties. Deployment of tankers in a combination of voyage charter, time charter & COA with Indian oil industry. • Deployment of bulk carriers through a judicious combination of COA, spot charter, trip-time-charter, period charter. • Operating 2 LPG/Ammonia carriers and 1 Chemical tanker, LPG/ Ammonia carriers are deployed mainly in service of Indian oil industry on time charter/ voyage charter basis. Carriage of LPG from West Asia Gulf, Malaysia to India as well as coastal movement of LPG from Indian refineries. • Presently operating 4 liner services in various consortium arrangements: Indian Subcontinent Europe service , India/ Far East service, India-Mediterranean service, India- Middle East(SMILE service). World wide break bulk services through space charter arrangements. Joint feeder services on the Indian Sub-continent. • 16 SCI-owned Offshore Supply Vessels (OSVs) deployed with ONGC, managing ONGC’s critical well stimulation vessel since 1986, operation and technical management of ONGC’s Offshore Supply Vessels (OSVs) and Multi-Support Vessels (MSVs). Technical consultancy to various organizations.

8. Strategic Joint Ventures SAIL SCI Shipping Private Limited • Entered into a 50:50 joint venture in March, 2010 to provide various shipping and related services to SAIL for importing coking coal and other bulk materials India LNG Transportation Company • Own three LNG carriers with total DWT of 229,687 under 3 separate joint venture companies with Mitsui OSK Lines, NYK, K Line, Qatar Shipping Company, Qatar Gas Transport Company • SCI mans and manages 2 LNG vessels – Only Indian shipping company with LNG carrier expertise • LNG tankers are under 25 year charter carrying LNG from Ras Laffan, Qatar to Dahej Terminal of Petronet LNG SCI Forbes Limited • Joint Venture with Forbes Gokak Company and Sterling Investment Corporation Pvt. Ltd. (50%) and SCI (50%) for acquisition and operation of chemical tankers • Operates 4 chemical tankers with total DWT of 52,092 under this joint venture Irano-Hind Shipping Co. Ltd. • Joint Venture established with Islamic Republic of Iran Shipping Lines in March 1975 • Owns and operates a fleet of 7 vessels (including subsidiaries) aggregating 0.64 mn DWT

9. MARITIME TRAINING INSTITUTE • In-house Maritime Training Institute (MTI) set up at Mumbai in 1987. • ISO-9001 compliant. • Recognized as a branch of World Maritime University, Sweden for specialized short courses for Asia & Pacific Region. • Also recognized by UNCTAD as a regional training centre. • Conducts pre-sea and post Sea training for seafarers • Offers value added management courses • Designs custom made courses on demand for various companies

10. DPE GUIDELINES 26/11/08 AND 2/4/09 & PRESIDENTIAL DIRECTIVES 1/5/09

11. 26/11/08 CPSEs would be allowed 30% of basic pay as superannuation benefits, which may include Contributory Provident Fund, Gratuity, Pension and Post superannuation Medical Benefits. The CPSEs should make their own schemes to manage these funds or operate through insurance companies on fixed contribution basis. The amount of Pension, Gratuity and Post Retirement Benefit will be decided based on the returns from the Schemes to be operated. The Pension and Medical benefits can be extended to those executives who superannuate from the PSE and have put in a minimum of 15 years of service in the CPSE prior to superannuation. 2/4/09 The ceiling of 30% towards superannuation benefit would be calculated on the Basic Pay plus DA instead of Basic Pay alone. Any superannuation scheme will be under a defined contribution scheme and not under a defined benefit scheme. CPSEs that do not have superannuation scheme, may develop such scheme and obtain approval of their Administrative Ministry. However, no other superannuation benefit can be granted outside this 30% ceiling. 1/5/09 The SCI would contribute 30% of the (Basic Pay + DA) towards superannuation benefits, which would include Contributory PF, Gratuity, Pension and Post superannuation Medical Benefits. Any superannuation benefit will be under a ‘defined contribution scheme’ and not under a ‘defined benefit scheme’. No other superannuation benefit can be granted outside this 30% ceiling. SCI may formulate a superannuation scheme and obtain approval of the Government. The pension and medical benefits can be extended to those executives who superannuate from the CPSE and have put in a minimum of 15 years of service in the CPSE prior to superannuation.

12. WAY FORWARD AND PRESENT SCHEMES • THE SCI HAS NOT IMPLEMENTED A PENSION SCHME AS YET. • DELIBERATIONS ARE ON TO IMPLEMENT A POST RETIREMENT MEDICAL SCHEME AND A PENSION SCHEME FOR EMPLOYEES RETIRING WEF 1.1.07. • FEASIBILITY OF OFFERING ANNUITY SCHEMES THROUGH INSURANCE BEING EXAMINED. • UNTIL FINALISATION OF SCHEMES, THE EXISTING POST RETIREMENT MEDICAL SCHEME, INTRODUCED IN 1997, STANDS EXTENDED TO EMPLOYEES RETIRING POST 1.1.07. • EXISTING PRMS BEING EXAMINED FOR IMPROVEMENT OF BENEFITS. • ALLOCATION/TRANSFER OF FUNDS MADE TO SUPERANNUATION BENEFIT FUND.

13. EXISTING POST RETIREMENT MEDICAL SCHEME • As per the PRMS, employees can avail of hospitalization in nominated hospitals in the 4 metros, where we have our offices. • In other cities we have on panel UTI approved hospitals. • Retired employees need necessarily be admitted into these hospitals for treatment, except in emergencies and life threatening situations. • 10% of billed amount or Rs. 15,000, whichever is higher, has to be borne by the employee.

14. Life time Ceilings are: Staff – RS. 4.00 lakh AM - DGM RS. 6.00 lakh GM – ED RS. 8.00 lakh Directors & C&MD RS. 10.00 lakh Domiciliary Limits Staff Rs. 3000 pa AM – DGM Rs. 6000 pa GM upwards Rs. 9000 pa Other Features: Open to employee and spouse only. In the event of unfortunate demise of the employee in service, the surviving spouse may become the member and avail benefits under the Scheme immediately. In VR cases the benefit is enjoyed by employee and spouse on notional date of superannuation.

15. Thank you