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.

Essar Shipping Limited (ESL) announced a significant change in its board composition as Non-Executive Director Srinivasan Vaidyanathan tendered his resignation, effective from the close of business hours on July 21, 2025. The company made this disclosure in compliance with SEBI regulations.

Resignation Details

Mr. Vaidyanathan, who served as an Additional Director on the board, cited "other commitments and personal reasons" for his departure. In his resignation letter, he expressed gratitude to the board of directors and the management team for their support during his tenure. Vaidyanathan confirmed that there were no other material reasons for his resignation.

Company's Response

Essar Shipping's management has accepted Vaidyanathan's resignation and relieved him of his responsibilities. The company's filing stated that there were no material reasons for the resignation other than those mentioned by Mr. Vaidyanathan himself.

Regulatory Compliance

The resignation was reported to the stock exchanges as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Essar Shipping's Company Secretary and Compliance Officer, Bharat Modi, submitted the necessary documentation, including Mr. Vaidyanathan's resignation letter.

About Essar Shipping Limited

Essar Shipping Limited, with its registered office in Gujarat, operates in the shipping industry. The company, bearing the Corporate Identification Number L61200GJ2010PLC060285, is part of the larger Essar Group, which has interests across steel, energy, infrastructure, and services sectors.

This board-level change comes as Essar Shipping continues to navigate the dynamic shipping industry landscape. Stakeholders will be watching closely to see how this change might influence the company's strategic direction moving forward.