The Ministry of Ports, Shipping and Waterways (MoPSW) has directed Shipping Corporation of India (SCI) to expedite the process of demerger of non-core assets of the company to its wholly-owned subsidiary, Shipping Corporation of India Land and Assets Ltd (SCILAL).
The Ministry also requested the Board of SCI to review the demerger scheme for demerging the company’s non-core assets, including Shipping House, Mumbai and MTI, Powai, to SCILAL.
This is to ensure that the process of demerging all the non-core assets to SCILAL is completed on immediate basis prior to the completion of Share Purchase Agreement. The Ministry also suggested certain modifications in the scheme, SCI said in a regulatory disclosure.
Pursuant to the November 2021 instructions of MoPSW, SCI had incorporated SCILAL as a 100 per cent subsidiary for the demerger of non-core assets.
“The implementation of the (demerger) scheme including the modified scheme is in process and considering the reiteration by MoPSW and DIPAM to expedite the dernerger process, there is a certainty of completion of the process in the near future, and accordingly, the relevant disclosures with continued accounting effects have been considered in the financial statements,” SCI said.
Meanwhile, SCI has reported a 97 per cent year-on-year (yoy) jump in standalone net profit at ₹131 crore in the fourth quarter against ₹66 crore in the year ago quarter.
SCI reported a 29 per cent increase in FY22 standalone net profit at ₹795 crore against ₹618 crore in FY21.
The Board of Directors of the company recommended a dividend of ₹0.33 per equity share of face value of ₹10 each. The outgo on this account will be approximately ₹15.51 crore, the company said.
May 14, 2022