Essar Shipping Limited , a prominent player in the shipping industry, has announced significant changes in its leadership team. The company has disclosed the resignation of Bharat Modi from his position as Company Secretary and Compliance Officer, effective August 28, 2025. Simultaneously, Essar Shipping has appointed Habib Jan as the new Company Secretary and Compliance Officer, with his tenure commencing on August 29, 2025.

Departure of Bharat Modi

Bharat Modi, who has served as the Company Secretary and Compliance Officer, submitted his resignation citing personal reasons. In his resignation letter, Modi expressed gratitude to the Board and management for the opportunities and support extended during his tenure. The company confirmed that there were no material reasons for his resignation other than those provided in his letter.

Appointment of Habib Jan

Taking over the reins from Modi, Habib Jan brings a wealth of experience to his new role at Essar Shipping. With over 20 years of expertise in secretarial, compliance, and finance aspects of businesses, Jan is well-equipped to handle the responsibilities of Company Secretary and Compliance Officer.

Habib Jan's Professional Background

Habib Jan's career highlights include:

• Specialization in corporate and securities law, capital issues, corporate restructuring, mergers and amalgamations, and corporate governance.
• Extensive experience in project and debt financing, refinancing, and corporate debt restructuring.
• Proficiency in business development contracts management, framing legal corporate policies, and foreign exchange management.
• Expertise in fund-raising activities, including public issues in primary and secondary markets, and international listings.
• Previous association with Essar since 2009, where he played key roles in various corporate actions, including the delisting of Essar Shipping, Ports & Logistics Limited (ESPLL) and the subsequent listing of Essar Shipping Limited and Essar Ports Limited.
• Prior experience with Reliance ADA Group, where he was involved in significant restructuring and M&A activities.
• Achievements include registering India's first land-based casino at Daman Hospitality and raising primary and secondary debt from overseas markets.

Jan is a qualified Company Secretary from The Institute of Company Secretaries of India and holds directorships in oilfields, shipping, and logistics businesses.

Additional Board Changes

In a separate announcement, Essar Shipping also informed that Mr. Ketan Shah (DIN: 02481491) has ceased to be a Non-Executive Additional Director of the company effective August 29, 2025. This change occurred as the required shareholder approval for his appointment was not obtained within the stipulated three-month period, as per Regulation 17(1C) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

These leadership changes come at a crucial time for Essar Shipping as the company continues to navigate the dynamic shipping industry landscape. The appointment of Habib Jan, with his extensive experience and diverse skill set, is expected to contribute significantly to the company's corporate governance and strategic initiatives moving forward.

Essar Shipping Limited , a prominent player in the maritime industry, finds itself navigating turbulent waters as it faces a probe from the Serious Fraud Investigation Office (SFIO) while grappling with ongoing financial challenges.

SFIO Investigation

The company recently disclosed that it received a notice from the SFIO dated August 11, initiating an investigation into its affairs under Section 212 of the Companies Act, 2013. The notice demands data, documents, and information from Essar Shipping, although it does not specify any particular violations or contraventions. The company has stated that it will cooperate fully with the SFIO during the investigation process.

Financial Performance

Despite the regulatory scrutiny, Essar Shipping's latest financial results for the quarter ended June 30 show signs of improvement:

• Total income from operations increased to ₹52.03 crore, up from ₹4.62 crore in the same quarter last year.
• The company reported a profit after tax of ₹41.67 crore, a significant turnaround from a loss of ₹144.58 crore in the corresponding quarter of the previous year.
• Other income saw a substantial rise to ₹47.78 crore, primarily due to exchange fluctuations and profit from the sale of a foreign subsidiary.

Operational Highlights

• The management agreement with a group company was terminated effective May 31, and with a subsidiary company effective June 30.
• Essar Shipping completed the sale of its stake in a foreign subsidiary, recognizing a profit of ₹47.70 crore, which includes a foreign exchange gain of ₹21.89 crore.

Ongoing Concerns

Despite the positive quarterly results, Essar Shipping continues to face significant challenges:

• The company's net worth remains eroded, with accumulated losses of ₹6,479.08 crore against a share capital and reserves of ₹5,217.75 crore.
• Current liabilities exceed current assets, raising concerns about the company's liquidity position.
• The company is involved in legal proceedings with lenders of a subsidiary (under liquidation) where Essar Shipping stands as a guarantor.

Future Outlook

Management is actively pursuing measures to improve the company's financial position:

• Plans to place its Tug vessel on a charter hire basis to generate steady revenue.
• Undertaking steps to address the mismatch between current assets and current liabilities.

The company maintains that despite the ongoing SFIO investigation, there is no material impact on its financial, operational, or other activities, and it will continue normal business operations.

As Essar Shipping navigates through these challenges, stakeholders will be closely watching how the company manages to steer through the regulatory investigation while addressing its financial concerns.