Piece of Shipping Cake

Piece of Shipping Cake Kumaran Pola ESSAR SHIPPING increased its main income from charter hire and freight by 47 per cent on annualised basis during the year ended March 31, 1990. Due to the increase in the number of ship days, judicious deployment of ships, tight control over expenses and also profit on sale of two ships, the company could achieve substantial improvement in performance during the year. There was increase in operating expenses such as employees' cost by 35 per cent and depreciation by 40 per cent on annualised basis mainly due to increase in number of ships and due to a larger number of voyages over the preceding year. Despite such spurts in expenses, the company could substantially reduce the expenses to sales (main income) 1989-90. This provided the explanation for