1. The Great Eastern Shipping Company Limited Corporate Presentation & Financial Announcement FY 2001 8 May 2001

2. 2 Corporate mission “To be a leading service provider of marine logistics involving shipping and offshore services with a focus on the energy sector.”

3. 3 Corporate profile Largest Indian private sector shipping co. Crude & products transportation Dry bulk transportation Largest Indian private sector offshore service provider Oil field services Port services Global customer base Techno-commercial expertise Opportunities & Risk assessment Knowledge driven organisation 50 years of experience Leveraged to enhance intl. trade Emphasis on safety & quality Strong financials Steady Cash Generator Increasing capital productivity

4. 4 Professional management structure Board of Directors Managing Director Core operating committees Overall mgt. responsibilit y Consensus on important decisions Pooling experience & resources Head - Shipping Head - Offshore President–Corp & Co. Sec. CFOCIO & Head-HR

5. 5 Corporate objectives Preferred service provider Focus on customer and quality of service Constant modernisation / upgradation of assets Stability & visibility of earnings Long-term growth Diversified portfolio of related businesses Exposure to multiple geographies, trades and customers Period covers: revenue visibility Asset expansion: supporting growth opportunities Stronger operating model Inorganic opportunities Total organisational focus on enhancing human capital contribution

6. 6 Business segments G.E. Shipping SHIPPINGOFFSHORE CrudeProductDry bulkGas Offshore services Port support / Terminal services Suezmax Aframax Medium range General purpose Handymax Handysize Drilling services Marine const. Proj & serv. Offshore support / logistics Drilling rigs Construction barge Anchor handling tugs (AHT) AHT supply vessels (AHTSV) Dive support/supply vessels Harbour / terminal tugs

7. 7 Shipping Business

8. 8 Global overview Earnings drivers Demand driversSupply drivers World GDP growth OPEC prodn Inventory levels Steel prodn OrderingScrapping New building prices Shipyard capacity Replacement demand Wet/dry WetDry Crude sourcing areas Refinery location Regional grain prodn Wet Wet/dry Age Market conditions Regulatory parameters Wet/dry Wet Trade growthTrade patterns Wet Dry

9. 9 Techno-commercial Capabilities Ability to participate in premium international trades CAP rating initiative: 4 product tankers certified All oil major approvals on 3 crude oil carriers All oil major approvals on 7 MR product tankers

10. 10 Redefining asset allocation DetailsNo.Aggr. DWTAvg age (yrs) 200119972001199720011997 Crude oil tankers31355,000150,00055 Product tankers-GP69173,000259,0001514 Product tankers-MR76335,000280,0001514 Gas carrier1128,400 2319 Bulk carriers15*17410,000610,0001917 Total32341,301,4001,327,400 * Includes 4 MBCs Committed capex of US$ 136 million for 3 Aframax tankers and one product tanker Rs mln

11. 11 Global customer acceptability FY01FY97

12. 12 Risk Management: optimising opportunities Market Multiple sector exposure Cross geo asset deployment Period cover Favourable value asset acquisition Environment Quality assets – intl. certifications Stringent safety practices Global oil pollution response contract Commercial Pre-purchase inspection process Ongoing maintenance & inspection Technical Operational Credibility assessment RISKMANAGEMENT

13. 13 Operating highlights Q4 FY01Q4 FY00FY2001FY2000 Crude tankers – Suezmax Operating days9058380335 Operating capacity13.08.455.248.6 TCY [$ / day]18,87615,37319,00515,108 Crude tankers –Aframax Operating days179195732735 Operating capacity18.820.576.977.2 TCY [$ / day]41,04113,68630,35512,029 Product tankers – Medium range Operating days66352921641821 Operating capacity31.825.9104.889.3 TCY [$ / day]23,45611,61516,00610,402 Product tankers – General Purpose Operating days49858323142829 Operating capacity14.416.365.979.2 TCY [$ / day]11,88810,52610,66210,914

14. 14 Operating highlights Q4 FY01Q4 FY00FY2001FY2000 Bulk carriers – Handymax Operating days82794034853398 Operating capacity32.236.2137.9130.8 TCY [$ / day]7,6786,5968,0956,569 Bulk carriers – Handysize Operating days25824510441221 Operating capacity7.06.628.433.0 TCY [$ / day]5,5125,8326,7155,095 Operating capacity in million DWT-days

15. 15 Freight rates: current perspective 30,00 0 25,00 0 19,00 0 9,000 6,000 Current 14,00 0

16. 16 Future outlook Freight rates off Q4 peaks OPEC supply cut Slowdown in U.S. economy Positive outlook through FY 2002 IEA estimated oil demand increase by 1.8% Marginal fleet accretion – 4% of current fleet to be delivered in 2001 Weakness expected in FY 2002 Aggressive fleet additions: 12% of existing fleet on order 30m DWT additions by 2002 Reduced scrapping trends: <6m DWT in 2000 & YTD 2001 Supply overhang expected over next year Weakening global economic prospects 6% demand growth required to maintain existing freight rates DRY BULK TANKERS

17. 17 Revenue visibility 35% of FY 2001 revenues already covered Targeting enhanced crude coverage Limited risk management in dry bulk Monthly trend assessment & cover reviewed by mgt FY02 operating capacity covered Rs 674 million covered Rs 1057 million coveredRs 93 million covered

18. 18 Future direction Enhanced focus on tankers Modernisation of asset base: greater intl. exposure Dry bulk expansion linked with attractive market opportunities De-risking strategies Enhanced customer focus Creation of a sustainable brand

19. 19 Offshore Business

20. 20 Offshore business matrix Drilling service s Port services Marine construction Air logistics Marine logistics

21. 21 Global sector outlook Trend of range-bound oil prices Brent crude: FY2001 US$ 22-28 / barrel Enhanced exploration activity Increased demand for offshore services Buoyant gas prices Emergence of limited number of strong players Indications of US exploring gas production indigenously Offshore industry in consolidation phase

22. 22 Domestic sector outlook Drilling activity at core of the sector Marine support services revolve around drilling GoI policy allows private & foreign investment in oil exploration 25 of identified 48 blocks awarded under NELP-I 23 bids under scrutiny for 25 exploration blocks under NELP-2 Increasing capacity utilisation and greater demand visibility Composite services Attractive business ONGC experience leveraged for emerging opportunities Enron, Hardy Oil, Cairn Energy, Niko Resources, Mosbacher

23. 23 Company position Initial investment focused on ONGC operations Leading service provider within the sector Developed long experience & productive relationships Improving profitability Poised to capitalise on emerging opportunities Increasing E&P operations

24. 24 Offshore fleet profile DetailsNo.Avg age (yrs) 2001199720011997 Oil drilling rigs222723 Offshore support vessels14101615 Harbour tugs102611 Construction barge112319 Rs mln

25. 25 Offshore Support Vessels Leading service provider in the sector Main competition from foreign contractors Servicing all E&P operators in India Further demand from NELP and E&P expansion programmes Foray into specialised services: deep water drilling

26. 26 Port services Servicing public & private sector port trusts Competition from port authority-owned infrastructure & further acquisition Focused on market led growth Corporatisation of major ports / devlpt of minor open greater opportunities Further demand from upcoming LNG / chemical terminals

27. 27 Safety, quality and training System Driven by high operational standards required in the sector Implementation Compliance Monitoring Accolades Benefits Control systems to regulate Safety, Quality & Environmental Protection Safety & knowledge enhancement training programmes: increase awareness, efficiency Regular internal & external safety audits Loss prevention by monitoring fleet safety performance Recent awards from Enron and Hardy recognising efficient and safe practices

28. 28 Operating highlights Q4 FY01Q4 FY00FY2001FY2000 Drilling rigs Operating days102138652607 Operating rate [$ / day]22,67427,47422,17930,306 Support vessels Operating days107211863,7903,621 Operating rate [$ / day]4,5814,0184,2714,130 Harbour tugs Operating days9227213,2722,449 Operating rate [$ / day]130,063152,397146,912139,614 Construction barges Project revenues [Rs mln]N/A 263758

29. 29 Revenue visibility FY02 operating capacity covered 57% of FY2001 revenues covered Rs.500 million coveredRs.198 million covered Rs.543 million coveredRs.10 million covered

30. 30 Revenue visibility OSVs / Tugs Rig / Construction

31. 31 The Future Commitment to deepwater drilling services - enhanced business prospects –Acquisition of Malaviya Ten (US$20 m) –2 PSVs ordered - US$26 m - delivery 2002 Future expansion linked to E&P activity in India –Mumbai High redevelopment programme –Ravva Phase II - KG basin –Lakshmi Field –Enron’s Panna-Mukta field programme Potential opportunities from NELP

32. 32 Financial performance

33. 33 Financial overview Market capitalisation: Rs. 7,178 million* Cash generation of Rs. 3,782 million in FY2001 Net Worth Rs. 10,910 million Capital employed Rs. 20,124 million - Debt:Equity 0.84:1 Book Value per share: Rs. 50 per share NAV of Assets: Rs.67 per share* AAA rating by CRISIL since 1995 Uninterrupted 15-year dividend record *As on 7 May 2001

34. 34 Financial performance

35. 35 Capital employed 19,944 20,307 21,457 21,335 20,124

36. 36 Operating highlights Q4 FY01Q4 FY00FY2001FY2000 TCE Income2783204091678115 Operating profit1335103547403684 Cash profit103781837822916 PAT54632317741067 EPS (Rs.)2.31.28.04.1

37. 37 Business distribution 2000-01 64% 76% 14% 20% Others 22%4% Composition of capital employed Rs.20,124 mn Composition of Operating Profit (PBDIT) Rs.4,740 mn* * - incl.profit on sale Shipping Offshore

38. 38 Financial analysis FY01FY00 OPM42%32% NPM16%11% RONW16%9.5% EPS8.004.10 CEPS17.211.3 Debt/Equity0.840.89 Interest cover6.66.1

39. 39 Value initiatives Optimisation of Capital structure Buyback of equity shares Prepayment of high cost debt Cost Reduction initiatives Reduced non- operating assets Appointed Accenture to advise Cost savings in FY 2001: Rs.195 million Expected savings in FY 2002: Rs.250 million Enhancing decision support systems Aggressive divestment of properties Reduced portfolio of equities / commodities Accenture implementation of integrated IT package in shipping division

40. 40 Buyback objectives Strong cash generation expected Positive operating outlook Sale of non-core assets Value enhancement Book Value per share: Rs.50 NAV per share: Rs.67 Optimal Debt / Equity balance Buy back II – Rs 1,000 million – maximum Rs 42 per share Adequate fund availability for near-term capital expenditure To be funded from internal accruals and higher leveraging

41. 41 Concerns: pro-active redressal Equities trading No investments, liquidating existing portfolio Current exposure: Rs. 20 million Commodities trading Property exposure Forex exposure Promoter participation High Equity base Reduced substantially over last 3 years Close positions by FY 2002 Demerged property division Pro-active liquidation of assets Cautious approach Exposure on operations driven forward cover Buyback I: Rs. 1.5 billion; Equity base  16% Second tranche to be cleared at AGM Current shareholding 20% Creeping acquisition

42. 42 Sector position Global acceptability De-risking business Focusing on Returns Creation of brand identity Modernising infrastructure Sector leadership: global focus Enhancing stakeholder value

43. 43 Visit us at www.greatship.com