Shipping Corporation of India (SCI) has been impacted due to a slowdown attributable to the global economic crisis, but it has the financial capacity to overcome the problem, Shipping Secretary K Mohandas said.

"As of now, SCI has the financial capacity to withstand this temporary crisis," Mohandas said.

"There is an impact of the global slowdown, but then that's an economic reality that has to be accepted. But things are certainly not as dismal as some projections have come out," he added.

"The company will be in the red from this year, if the interest income and income from sale of assets is excluded," Vijay Chibber, financial advisor and additional secretary in the ministry said.

Mohandas said SCI with cash reserves of Rs 2,500 crore and debt-equity ratio of 0.66%, was well placed to come out of the downturn once the economic situation improves.