Note 2.1 Basis of accounting and preparation of financial statements

These financial statements have been prepared in accordance with Indian Accounting Standards (“Ind
AS“) under the provisions of the Companies Act, 2013 (the “Act“), to the extent notified. The Ind AS are
prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 and the Companies (Indian Accounting Standards) Amendment Rules issued thereafter. The
financial statements have been prepared on the accrual basis of accounting and on a going concern basis,
and are presented in Indian Rupees, which is also the Company’s functional currency. All amounts have
been rounded to the nearest rupee, except where otherwise indicated.

Note 2.2 Historical cost convention

The Standalone Financial Statements have been prepared on a historical cost basis, except for the
following items which have been measured at fair value: Certain financial assets and financial liabilities
measured at fair value; Defined benefit plan assets measured at fair value; Assets held for sale, where
measured at fair value less costs to sell. Fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the use of relevant observable inputs and minimising
the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the
financial statements are categorised within the fair value hierarchy described in Ind AS 113 “Fair Value
Measurement¹¹, based on the lowest level input that is significant to the fair value measurement as a
whole.

Note 2.3 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current
classification.

An asset is classified as current when it is.

• expected to be realised, or intended to be sold or consumed, in the normal operating cycle;

• held primarily for the purpose of trading;

• expected to be realised within twelve months after the reporting date;

• or cash or a cash equivalent, unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting date.

All other assets are classified as non-current.

A liability is classified as current when.

• it is expected to be settled in the normal operating cycle;

• it is held primarily for the purpose of trading;

• it is due to be settled within twelve months after the reporting date; or

• the Company does not have an unconditional right to defer settlement of the liability for at least twelve
months after the reporting date.

All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non¬
current. Based on the nature of services provided by the Company, twelve months has been considered as
the operating cycle for the purpose of current/non-current classification of assets and liabilities.

Note 2.4 Critical accounting estimates and judgements

The preparation of these financial statements in conformity with the recognition and measurement
principles of Ind AS requires management to make judgements, estimates and assumptions that affect the
reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the
financial statements, and the reported amounts of income and expenses for the year presented. Actual
results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected. The areas involving a higher degree of judgement or complexity, and items where assumptions
are significant to the financial statements, include:

• useful lives of property, plant and equipment, and intangible assets;

• impairment of assets and expected credit losses on financial assets;

• measurement of defined benefit obligations - actuarial assumptions including discount rate, salary
escalation and demographic assumptions;

• recognition of deferred tax assets to the extent recovery is probable;

• recognition and measurement of provisions and contingencies; and

• identification of lease term, including assessment of renewal/termination options under Ind AS 116.
Note 2.5 Property, plant and equipment

Items of property, plant and equipment are stated at cost, net of recoverable taxes, trade discounts and
rebates, less accumulated depreciation and impairment losses, if any. Such cost includes purchase price,
borrowing costs and any cost directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management, net charges on foreign
exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

In the case of land, the Company has availed the fair value as deemed cost on the date of transition to Ind
AS.

Subsequent costs are included in the asset’s carrying amount, or recognised as a separate asset (as
appropriate), only when it is probable that future economic benefits associated with the item will flow to
the Company and the cost can be measured reliably. Where significant components of property, plant and
equipment have different useful lives, they are accounted for as separate items (major components).

Other indirect expenses incurred during the project development stage, net of income earned during such
stage, are considered as pre-operative expenses and disclosed under Capital Work-in-Progress until the
asset is ready for its intended use.

are expected from its use or disposal. Gains or losses arising from derecognition are measured as the
difference between the net disposal proceeds and the carrying amount, and are recognised in the
Statement of Profit and Loss.

Note 2.6 Depreciation

Depreciation on property, plant and equipment is provided using the straight-line method on the estimated
useful lives of the assets. The residual values, useful lives and depreciation method are reviewed at each
financial year-end and any changes are accounted for prospectively as a change in accounting estimate.
Depreciation on assets under construction commences only when the assets are ready for their intended
use.

The useful lives of Vessels, Barges and Speed Boats have been determined based on technical evaluation
carried out by management, supported by external technical experts where considered necessary.
Management believes that these useful lives best represent the period over which the assets are expected
to be used and may differ from those specified in Part C of Schedule II to the Companies Act, 2013. For other
categories of property, plant and equipment, the useful lives adopted are aligned with those prescribed in
Schedule II to the Companies Act, 2013.

Note 2.7 Intangible assets

Intangible assets are stated at cost of acquisition net of recoverable taxes, trade discounts and rebates,
less accumulated amortisation and impairment losses, if any. Such cost includes purchase price,
borrowing costs and any cost directly attributable to bringing the asset to its working condition for the
intended use.

Intangible assets are amortised on a straight-line basis over their estimated useful lives. The amortisation
period and amortisation method are reviewed at the end of each financial year and adjusted prospectively,
if appropriate.

Subsequent costs are included in the asset’s carrying amount, or recognised as a separate asset (as
appropriate), only when it is probable that future economic benefits associated with the item will flow to
the Company and the cost can be measured reliably. Other indirect expenses incurred relating to proje115

development, net of income earned during such stage, are considered pre-operative expenses and
disclosed under Intangible Assets Under Development.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset, and are recognised in the Statement of
Profit and Loss when the asset is derecognised.

Note 2.8 Impairment of non-financial assets

Property, plant and equipment and intangible assets that are subject to depreciation/amortisation are
reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
of an asset (or cash-generating unit) may not be recoverable. An impairment loss is recognised for the
amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less costs to sell and value-in-use.

Value-in-use is determined based on estimated future cash flows discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. Significant estimates used include projected revenues and operating margins, growth
rates, terminal values and discount rates.

An impairment loss is recognised in the Statement of Profit and Loss. A previously recognised impairment
loss (other than for goodwill) is reversed if there has been a change in the estimates used to determine the
recoverable amount, but only to the extent that the carrying amount of the asset does not exceed the
carrying amount that would have been determined had no impairment loss been recognised previously.

Note 2.9 Leases

The Company assesses, at contract inception, whether a contract is, or contains, a lease in accordance
with Ind AS 116 “Leases". A contract is, or contains, a lease if the contract conveys the right to control the
use of an identified asset fora period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short¬
term leases (lease term of twelve months or less) and leases of low-value assets, for which lease
payments are recognised as an expense in the Statement of Profit and Loss on astraight-line basis over the
lease term.

At the commencement date, the Company recognises a right-of-use (“ROU“) asset and a corresponding
lease liability.

(a) Right -of-use assets

The ROU asset is initially measured at cost, comprising the initial amount of the lease liability, lease
payments made at or before the commencement date (less lease incentives received), initial direct costs
incurred, and an estimate of costs to dismantle and remove the underlying asset or to restore the
underlying asset or site. ROU assets are subsequently measured at cost less accumulated depreciation,
accumulated impairment losses, and adjusted for any remeasurement of the lease liability.

(b) Lease liabilities

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be
readily determined, the Company’s incremental borrowing rate. Lease payments included in the
measurement of the lease liability comprise fixed payments (including in-substance fixed payments),
variable lease payments that depend on an index or rate, amounts expected to be paid under residual
value guarantees, the exercise price under a purchase option if reasonably certain to be exercised, and
payments of penalties for terminating the lease if the lease term reflects the Company exercising an
option to terminate.

After the commencement date, the lease liability is increased to reflect the accretion of interest and
reduced for the lease payments made. The carrying amount is remeasured when there is a change in future
lease payments arising from a change in an index or rate, a change in the estimate of the amount
expected to be payable under a residual value guarantee, or a reassessment of options to extend or
terminate the lease.

Presentation

ROU assets are presented as a separate line item in the balance sheet. Lease liabilities are presented
separately under financial liabilities (current and non-current as applicable). Interest expense on lease
liabilities is presented within finance costs, and depreciation of ROU assets within depreciation and
amortisation expense, in the Statement of Profit and Loss. Cash payments for the principal portion of lease
liabilities are presented within financing activities, and the interest portion within operating activities (or
financing activities, consistently applied), in the Statement of Cash Flows.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to
ownership of an asset are classified as operating leases. Lease income from operating leases is recognised
on a straight-line basis over the lease term, unless the payments are structured to increase in line with
expected general inflation. Leases that transfer substantially all the risks and rewards incidental to
ownership are classified as finance leases; amounts due from lessees under finance leases are recognised
as receivables at amounts equal to the net investment in the lease.

Note 2.10 Financial instruments

(a) Financial assets - initial recognition and measurement

Financial assets are recognised when, and only when, the Company becomes a party to the contractual
provisions of the instrument. At initial recognition, financial assets are measured at fair value plus, in the
case of financial assets not measured at fair value through profit or loss, transaction costs that are directly
attributable to their acquisition. Transaction costs of financial assets carried at fair value through profit or
loss are expensed in the Statement of Profit and Loss.

(b) Classification and subsequent measurement -debt instruments

Debt instruments are subsequently measured at amortised cost, fair value through other comprehensive

income (“FVOCI“), or fair value through profit or loss (“FVTPL“), based on the Company’s business model
for managing the financial asset and the contractual cash flow characteristics of the asset:

• Amortised cost - assets held to collect contractual cash flows that are solely payments of principal
and interest (“SPPI“). Interest income is recognised using the effective interest method.

• FVOCI - assets held both to collect contractual cash flows and for sale, with cash flows meeting the
SPPI criterion. Fair value movements are recognised in OCI, except for interest, impairment and foreign
exchange gains/losses, which are recognised in profit or loss. On derecognition, the cumulative gain or
loss in OCI is reclassified to profit or loss.

• FVTPL-all other debt instruments. Changes in fair value are recognised in the Statement of Profit and
Loss.

(c) Equity instruments

Equity investments other than investments in subsidiaries, associates and joint ventures are measured at
fair value. The Company makes an irrevocable election at initial recognition, on an instrument-by¬
instrument basis, to present subsequent fair value changes in OCI (“FVOCI-equity“); otherwise, equity
investments are measured at FVTPL. For FVOCI-equity instruments, fair value gains and losses are not
subsequently reclassified to profit or loss on derecognition; dividends are recognised in profit or loss when
the right to receive payment is established.

(d) Derecognition of financial assets

A financial asset is derecognised when the contractual rights to the cash flows from the asset expire, or
when the asset and substantially all the risks and rewards of ownership are transferred. Where the
Company neither transfers nor retains substantially all the risks and rewards and retains control, the asset
continues to be recognised to the extent of the Company’s continuing involvement.

(e) Impairment of financial assets

The Company applies the expected credit loss (“ECL“) model under Ind AS 109 for measuring impairment
of financial assets carried at amortised cost and FVOCI debt instruments. For trade receivables and
contract assets, the Company applies the simplified approach and recognises lifetime ECL at each
reporting date from initial recognition. For other financial assets, ECL is measured at an amount equal to
12-month ECL, unless there has been a significant increase in credit risk since initial recognition, in which
case lifetime ECL is recognised.

(f) Financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans and
borrowings, or payables. All financial liabilities are recognised initially at fair value and, in the case of loans
and borrowings and payables, net of directly attributable transaction costs. After initial recognition,
interest-bearing borrowings and other financial liabilities are subsequently measured at amortised cost
using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are
derecognised, as well as through the effective interest rate amortisation process. A financial liability is
derecognised when the obligation under the liability is discharged, cancelled or expires.

(g) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet
when, and only when, the Company currently has a legally enforceable right to set off the recognised
amounts and intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.

(h) Derivatives

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured to fair value at the end of each reporting period. Changes in fair value of
derivatives that are not designated in a hedging relationship are recognised in the Statement of Profit and
Loss. During the years reported, no derivative was designated in a hedging relationship.

Note 2.11 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker (“CODM“), who is responsible for allocating resources and assessing
performance of the operating segments. The CODM reviews the Company’s performance as a single
business segment, namely ’shipping’. Accordingly, the Company has determined that it operates in a
single reportable segment for the purpose of Ind AS 108 “Operating Segments¹¹. The geographical
information required under Ind AS 108 is disclosed separately, where applicable.

Note 2.12 Inventories

In accordance with Ind AS 2 “Inventories¹¹, materials, stores and consumables procured for the purpose of
vessel and barge repairs and maintenance are recognised as an expense at the point of consumption. The
Company expenses such items at the time of purchase asa matter of accounting policy, since the value of
unconsumed stores, spares and consumables held by the Company at the reporting date is not considered
material in the context of the financial statements. The Company reassesses this position at each
reporting date.

Note 2.13 Foreign currency transactions and translation

The functional and presentation currency of the Company is Indian Rupee (*).

Initial recognition

On initial recognition, foreign currency transactions are recorded by applying to the foreign currency
amount the exchange rate between the functional currency and the foreign currency at the date of the
transaction.

Subsequent measurement

At the reporting date, monetary items denominated in foreign currencies are translated using the closing
exchange rate. Non-monetary items measured at historical cost in a foreign currency are translated using
the exchange rate at the date of the transaction, and non-monetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date the fair value is determined.

Exchange differences arising on settlement of monetary items, or on translation of such items at rates
different from those at which they were initially recorded during the period or in previous financial
statements are recognised in the Statement of Profit and Loss in the period in which they arise.

Note 2.14 Revenue recognition

Revenue from contracts with customers is recognised in accordance with Ind AS 115 “Revenue from
Contracts with Customers¹¹. Revenue is recognised when the Company transfers control of goods or
services to a customer, in an amount that reflects the consideration to which the Company expects to be
entitled in exchange for those goods or services.

Five -step model

The Company applies the following five-step model in recognising revenue: (i) identify the contract with
the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price;
(iv) allocate the transaction price to the performance obligations in the contract; and (v) recognise
revenue when (or as) the Company satisfies a performance obligation.

Shipping and related services

Revenue from voyage charter, time charter, ship management and related services is recognised over
time, on a straight-line or output basis, as the customer simultaneously receives and consumes the
benefits provided by the Company’s performance. Where revenue is recognised over time, the Company
uses an appropriate measure of progress (output method based on time elapsed or services performed).
Revenue from incidental services rendered at a point in time is recognised when control of the service
transfers to the customer.

Variable consideration

Variable consideration, such as demurrage, despatch, performance incentives, price adjustments and
similar items, is estimated using the expected value method or the most likely amount method, whichever
better predicts the consideration to which the Company will be entitled. Variable consideration is included
in the transaction price only to the extent that it is highly probable that a significant reversal of cumulative
revenue recognised will not occur when the uncertainty associated with the variable consideration is
subsequently resolved.

Contract balances

A contract asset is the Company’s right to consideration in exchange for goods or services that the
Company has transferred to a customer when that right is conditional on something other than the
passage of time. A receivable represents the Company’s right to an amount of consideration that is
unconditional. A contract liability is the obligation to transfer goods or services to a customer for which the
Company has received consideration (or an amount of consideration is due) from the customer.

Other income

Interest income is recognised on a time-proportion basis using the effective interest method. Dividend
income is recognised when the Company’s right to receive payment is established. Insurance claims and
other items of income are recognised when the rightto receive payment is established and it is reasonably
certain that the amount will be received.

Note 2.15 Employee benefits
Short-term employee benefits

Short-term employee benefits, including salaries, wages, short-term compensated absences and
performance incentives, are measured on an undiscounted basis and are charged to the Statement of
Profit and Loss in the period in which the related service is rendered.

Defined contribution plans

The Company’s contributions to defined contribution plans, including provident fund and other statutory
schemes, are recognised as an expense in the period in which the employee renders the related service.
The Company has no further obligations beyond its contributions to such schemes.

Defined benefit plans

The Company’s liability towards defined benefit retirement schemes (including gratuity) is determined
using the projected unit credit method, with actuarial valuations being carried out at each reporting date
by independent qualified actuaries. The service cost and net interest on the net defined benefit
liability/(asset) are recognised as an expense within employee benefit expense. Past service cost is
recognised in the Statement of Profit and Loss when the plan amendment or curtailment occurs, or when
any related restructuring costs or termination benefits are recognised, whichever is earlier.
Remeasurement gains and losses of the net defined benefit liability/(asset) - comprising actuarial gains
and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling- are
recognised in Other Comprehensive Income in the period in which they arise and are not reclassified to
profit or loss subsequently.

Other long-term employee benefits

Liabilities for other long-term employee benefits, such as long-term compensated absences, are
measured at the present value of the estimated future cash outflows expected to be made by the
Company, using the projected unit credit method with actuarial valuations carried out at each reporting
date. Actuarial gains and losses on such other long-term benefits are recognised in the Statement of Profit
and Loss in the period in which they arise.

Key assumptions

The Company’s retirement benefit obligations are subject to a number of assumptions, including discount
rates, inflation and salary growth. Significant judgement is required in setting these assumptions; the
Company sets them based on its own experience, market trends and third-party actuarial advice. The
sensitivity of the obligations to changes in these assumptions is disclosed separately.

Note 2.16 Taxes on income

Income tax expense comprises current tax and deferred tax. Current and deferred tax are recognised in the
Statement of Profit and Loss, except when they relate to items that are recognised in Other Comprehensive
Income or directly in equity, in which case the related tax is also recognised in Other Comprehensive
Income or directly in equity, respectively.

Current tax

Current tax is the amount of tax payable on the taxable profit for the year, determined in accordance with
the applicable tax rates and the provisions of the Income-tax Act, 1961 and other applicable tax laws.
Current tax assets and liabilities are offset where the Company has a legally enforceable right to set off the
recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability
simultaneously.

Deferred tax

Deferred income tax is recognised using the balance sheet approach. Deferred tax assets and liabilities are
recognised for deductible and taxable temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements, except where the deferred tax arises from
the initial recognition of goodwill or of an asset or liability in a transaction that is not a business
combination and affects neither accounting profit nor taxable profit at the time of the transaction.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences and the carry-forward of unused tax credits and
unused tax losses can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting
date and adjusted to reflect changes in probability.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset when
there is a legally enforceable right to set off current tax assets against current tax liabilities and when they
relate to income taxes levied by the same taxation authority on the same taxable entity.

Note 2.17 Borrowing costs

Borrowing costs include interest expense calculated using the effective interest method, finance charges
in respect of finance leases, and exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost. Borrowing costs that are directly
attributable to the acquisition, construction or production of a qualifying asset - i.e., an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale- are capitalised as
part of the cost of that asset, in accordance with Ind AS 23. All other borrowing costs are recognised as an
expense in the period in which they are incurred.

Note 2.18 Exceptional items

The Company discloses certain financial information both including and excluding exceptional items.
Exceptional items are identified by virtue of either their size or their nature, so as to facilitate comparison
with prior periods and to assess underlying trends in the financial performance of the Company. Items that
may be considered exceptional include, but are not limited to, gains or losses on disposal of
assets/investments, impairment charges, exchange gains/(losses) on long-term borrowings or long-term
monetary assets, and changes in fair value of derivative contracts.

Note 2.19 Earnings per share

Basic earnings per share is computed by dividing the net profit or loss after tax attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year, adjusted
retrospectively for any bonus issues and bonus elements in rights issues. Diluted earnings per share is
computed by dividing the net profit or loss after tax (as adjusted for dividend, interest and other charges to
expense or income, net of any attributable taxes, relating to the dilutive potential equity shares) by the
weighted average number of equity shares considered for deriving basic earnings per share plus the
weighted average number of equity shares which would be issued on the conversion of all dilutive potential
equity shares.

Note 2.20 Statement of cash flows

Cash flows are reported using the indirect method, whereby profit/(loss) before tax is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments, and items of income or expense associated with investing or financing cash flows.
Cash flows for the year are classified by operating, investing and financing activities.

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of accounting and preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standards (hereinafter
referred to as “Ind AS”) under the provisions of the Companies Act, 2013 (hereinafter referred to as
’the Act’) (to the extent notified).

The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment
Rules, 2016.

2.2 Historical Cost Convention

The Standalone Financial Statements have been prepared on a historical cost basis, except for the
following assets and liabilities, which have been measured at fair value:

Certain financial assets and financial liabilities;

Defined Benefit Plans Fair value is the price that would be received on sale of an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. The
Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

2.3 Current Vs Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current /non-current
classification.

An asset is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle.

• Held primarily for the purpose of trading

• Expected to be realized within twelve months after the reporting date, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period

• All other assets are classified as non-current.

• A liability is current when:

• It is expected to be settled in normal operating cycle

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period

• All other liabilities are classified as non-current.

• Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Based on the nature of products and services offered by the Company, operating cycle determined is
12 months for the purpose of current and non-current classification of assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in
cash and cash equivalents,

2.4 Critical Accounting Estimate & Judgements

The preparation of these financial statements in conformity with the recognition and measurement
principles of Ind. AS requires management to make judgments, estimates and assumptions, that affect
the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date
of the financial statements and the reported amounts of income and expenses for the years presented.
Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimates are revised and in any future periods
affected.

2.5 Property, Plant and Equipment’s:

Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discount and rebates
less accumulated depreciation and impairment losses, if any. Such cost includes purchase price,
borrowing cost and any cost directly attributable to bringing the assets to its working condition for its
intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate
variations attributable to the assets.

In case of land the Company has availed fair value as deemed cost on the date of transition to Ind AS.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the entity and the cost can be measured reliably.

Property, Plant and Equipment which are significant to the total cost of that item of Property, Plant
and Equipment and having different useful life are accounted separately.

Other Indirect Expenses incurred relating to project, net of income earned during the project
development stage prior to its intended use, are considered as pre - operative expenses and disclosed
under Capital Work - in - Progress.

Depreciation on Property, Plant and Equipment is provided using straight line method on useful
life of the assets as prescribed in Schedule II to the Companies Act, 2013. The residual values,
useful life and depreciation method are reviewed at each financial year-end to ensure that the
amount, method and period of depreciation are consistent with previous estimates and the expected
pattern of consumption of the future economic benefits embodied in the items of property, plant
and equipment.

Depreciation on assets under construction commences only when the assets are ready for their
intended use.

The Estimated useful lives of main categories of property, plant & equipment and intangible assets
are;

Vessels, Barges & Speed Boats
10 Yrs to 28 Yrs

Building
45 Yrs

Computers & Softwares
3 Yrs

Printers
10 Yrs

Furniture & Fixtures
5 Yrs to 10 Yrs

Office Equipment
5 Yrs to 10 Yrs

Motor Vehicles
8 to 10 Years

2.7 Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates
less accumulated amortization / depletion and impairment losses, if any. Such cost includes purchase
price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition
for the intended use, net charges on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the Intangible Assets.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the entity and the cost can be measured reliably.

Other Indirect Expenses incurred relating to project, net of income earned during the project
development stage prior to its intended use, are considered as pre - operative expenses and disclosed
under Intangible Assets Under Development.

Gains or losses arising from de-recognition of an Intangible Asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognised in the
Statement of Profit and Loss when the asset is de-recognized.

2.8 Impairment of Assets

Property, plant and equipment and intangible assets that are subject to depreciation / amortization are
tested for impairment periodically including when events occur or changes in circumstances indicate
that the recoverable amount of the cash generating unit is less than its carrying value. The recoverable
amount of cash generating units is higher of value-in-use and fair value less cost to sell. The
calculation involves use of significant estimates and assumptions which includes turnover and earnings
multiples, growth rates and net margins used to calculate projected future cash flows, risk-adjusted
discount rate, future economic and market conditions.

The Company reviews its carrying value of investments carried at cost or amortized cost annually or
more frequently when there is indication for impairment. If the recoverable amount is less than its
carrying amount, the impairment loss is accounted for.

An impairment loss is recognized in the Statement of Profit and Loss to the extent, asset’s carrying
amount exceeds its recoverable amount. Reversal of impairment loss is recognized immediately as
income in the statement of profit and loss.

The determination of whether an arrangement is (or contains) a lease is based on the substance of
the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment
of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if that right is not explicitly specified in an
arrangement.

A lease is classified at the inception date as a finance lease or an operating lease. A lease that
transfers substantially all the risks and rewards incidental to ownership to the lessee is classified as a
finance lease.

Finance Lease as a lessee

Finance leases are capitalized at the commencement of the lease at the inception date at fair value
of the leased property or, if lower, at the present value of the minimum lease payments. Lease
payments are apportioned between finance charges and reduction of the lease liability so as to
achieve a constant rate of interest on the remaining balance of the liability. Finance charges are
recognized in finance costs in the statement of profit and loss, unless they are directly attributable
to qualifying assets, in which case they are capitalized in accordance with the Company’s general
policy on the borrowing costs. Contingent rentals are recognized as expenses in the periods in which
they are incurred. A leased asset is depreciated over the useful life of the asset. However, if there is
no reasonable certainty that the Company will obtain ownership by the end of the lease term, the
asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating Lease as a lessee

Leases where a significant portion of the risks and rewards of ownership are retained by the lessor
are classified as operating leases. Operating lease payments are recognized as an expense in the
Statement of Profit and Loss on a straight-line basis over the lease term except where another
systematic basis is more representative of the time pattern in which economic benefits from leased
assets are consumed. The aggregate benefit of incentives (excluding inflationary increases) provided
by the lessor is recognized as a reduction of rental expense over the lease term on a straight-line
basis. Contingent rentals arising under operating leases are recognized as an expense in the period
in which they are incurred.

2.10 Financial Instruments

a. Financial assets

Initial recognition and measurement

Financial assets are recognized when, and only when, the Company becomes a party to the
contractual provisions of the financial instrument. The Company determines the classification of
its financial assets at initial recognition.

When financial assets are recognized initially, they are measured at fair value, plus, in the case of
financial assets not at fair value through profit or loss directly attributable transaction costs.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in the
Statement of Profit and Loss.

Classification

• Cash and Cash Equivalents - Cash comprises cash on hand and demand deposits with banks.
Cash equivalents are short-term balances (with an original maturity of three months or less
from the date of acquisition), highly liquid investments that are readily convertible into known
amounts of cash and which are subject to insignificant risk of changes in value.

• Debt Instruments - The Company classifies its debt instruments as subsequently measured at
amortized cost, fair value through Other Comprehensive Income or fair value through profit or
loss based on its business model for managing the financial assets and the contractual cash flow
characteristics of the financial asset.

(i) Financial assets at amortized cost

Financial assets are subsequently measured at amortized cost if these financial assets are held for
collection of contractual cash flows where those cash flows represent solely payments of principal
and interest. Interest income from these financial assets is included as a part of the Company’s
income in the Statement of Profit and Loss using the effective interest rate method.

(ii) Financial assets at fair value through Other Comprehensive Income (FVOCI)

Financial assets are subsequently measured at fair value through Other Comprehensive Income if
these financial assets are held for collection of contractual cash flows and for selling the financial
assets, where the assets’ cash flows represent solely payments of principal and interest. Movements
in the carrying value are taken through Other Comprehensive Income, except for the recognition of
impairment gains or losses, interest revenue and foreign exchange gains or losses which are
recognized in the Statement of Profit and Loss. When the financial asset is de-recognized, the
cumulative gain or loss previously recognized in Other Comprehensive Income is reclassified from
Other Comprehensive Income to the Statement of Profit and Loss. Interest income on such
financial assets is included as a part of the Company’s income in the Statement of Profit and Loss
using the effective interest rate method.

• Equity Instruments - The Company subsequently measures all equity investments (other than the
investment in subsidiaries, joint ventures and associates which are measured at cost) at fair value.
Where the Company has elected to present fair value gains and losses on equity investments in
Other Comprehensive Income (“FVOCI”), there is no subsequent reclassification of fair value
gains and losses to profit or loss. Dividends from such investments are recognized in the Statement
of Profit and Loss as other income when the Company’s right to receive payment is established.

The Company has made an irrevocable election to present in Other Comprehensive Income subsequent
changes in the fair value of equity investments that are not held for trading.

When the equity investment is de-recognized, the cumulative gain or loss previously recognized in
Other Comprehensive Income is reclassified from Other Comprehensive Income to the Retained
Earnings directly.

De-recognition

A financial asset is de-recognized only when the Company has transferred the rights to receive cash
flows from the financial asset. Where the Company has transferred an asset, the Company evaluates
whether it has transferred substantially all risks and rewards of ownership of the financial asset. In
such cases, the financial asset is de-recognized. Where the Company has not transferred substantially
all risks and rewards of ownership of the financial asset, the financial asset is not de-recognized. Where
the Company retains control of the financial asset, the asset is continued to be recognized to the extent
of continuing involvement in the financial asset.

b. Financial Liabilities

Initial recognition and measurement

Financial liabilities are recognized when, and only when, the Company becomes a party to the
contractual provisions of the financial instrument. The Company determines the classification of its
financial liabilities at initial recognition.

All financial liabilities are recognized initially at fair value, plus, in the case of financial liabilities not at
fair value through profit or loss directly attributable transaction costs.

Subsequent measurement

After initial recognition, financial liabilities that are not carried at fair value through profit or loss are
subsequently measured at amortised cost using the effective interest rate method. Gains and losses are
recognized in the Statement of Profit and Loss when the liabilities are de-recognized, and through the
amortization process.

De-recognition

A financial liability is de-recognized when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as a de-recognition of the original liability and the recognition of a
new liability, and the difference in the respective carrying amounts is recognized in the Statement of
Profit and Loss.

Derivatives

Derivatives are initially recognized at fair value on the date a derivative contract is entered into and
are subsequently re-measured to their fair value at the end of each reporting period. The accounting
for subsequent changes in fair value depends on whether the derivative is designated as a hedging
instrument, and if so, the nature of the item being hedged and the type of hedge relationship
designated. The fair value changes of derivatives which are not designated as a hedging instrument are
accounted through Statement of Profit and Loss.

During the years reported, no hedge relationship was designated.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by the Company are recognized at the
proceeds received, net of direct issue costs.

Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity.
No gain or loss is recognized in the Statement of Profit and Loss on the purchase, sale, issue or
cancellation of the Company’s own equity instruments.

c. Impairment of financial assets

The Company assesses, at each reporting date, whether a financial asset or a group of financial assets
is impaired. Ind AS-109 on Financial Instruments, requires expected credit losses to be measured
through a loss allowance. For trade receivables only, the Company recognizes expected lifetime losses
using the simplified approach permitted by Ind AS-109, from initial recognition of the receivables.

For other financial assets (not being equity instruments or debt instruments measured subsequently at
FVTPL) the expected credit losses are measured at the 12 month expected credit losses or an amount
equal to the lifetime expected credit losses if there has been a significant increase in credit risk since
initial recognition.

2.11 Segment Reporting

All business activities of the company revolve around one business segment i.e. Shipping. Therefore,
disclosure requirements under AS-17 (Segment Reporting) is not applicable.

2.12 Inventories:

All materials and consumables procured for the purpose of vessel and barge repairs are recognized as
expenses immediately upon purchase.

2.13 Foreign currency transactions and translation:

The functional currency of the Company is Indian Rupee (?).

Initial Recognition

On initial recognition, all foreign currency transactions are recorded by applying to the foreign
currency amount the exchange rate between the reporting currency and the foreign currency at the
date of the transaction.

Subsequent Recognition

As at the reporting date, non-monetary items which are carried at historical cost and denominated in
a foreign currency are reported using the exchange rate at the date of the transaction. All non¬
monetary items which are carried at fair value denominated in a foreign currency are retranslated at
the rates prevailing at the date when the fair value was determined.

Income and expenses in foreign currencies are recorded at exchange rates prevailing on the date of the
transaction. Foreign currency denominated monetary assets and liabilities are translated at the
exchange rate prevailing on the Balance Sheet date and exchange gains and losses arising on
settlement and restatement are recognised in the Statement of Profit and Loss.

2.14 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue is
recognized upon transfer of property of goods to buyer, provided persuasive evidence of an
arrangement exists, tariff / rates are fixed or are determinable and collectability is reasonably certain.
Revenue from sales of goods / service or rendering of services is net of Indirect taxes, returns and
discounts.

Income from services

Income from services is accounted for an accrual basis except for compensation which is accounted
for on receipt.

Dividend Income

Dividend income is recognized when the Company’s right to receive the payment is established.

Other Income:

Interest on Bank’s Fixed Deposits and other income are recognized on accrual basis.

2.15 Employees Benefits
Defined contribution plans

Contributions under defined contribution plans are recognized as expense for the period in which the
employee has rendered service. Payments made to state managed retirement benefit schemes are dealt
with as payments to defined contribution schemes where the Company’s obligations under the
schemes are equivalent to those arising in a defined contribution retirement benefit scheme.

Defined benefit plans

For defined benefit retirement schemes, the cost of providing benefits is determined using the
Projected Unit Credit Method, with actuarial valuation being carried out at each year-end balance
sheet date. Remeasurement gains and losses of the net defined benefit liability/(asset) are recognised
immediately in other comprehensive income.

The service cost and net interest on the net defined benefit liability/(asset) are recognised as an expense
within employee costs.

Past service cost is recognised as an expense when the plan amendment or curtailment occurs or when
any related restructuring costs or termination benefits are recognised, whichever is earlier.

The retirement benefit obligations recognised in the balance sheet represents the present value of the
defined benefit obligations as reduced by the fair value of plan assets.

Compensated absences

Liabilities recognised in respect of other long-term employee benefits such as annual leave and sick
leave are measured at the present value of the estimated future cash outflows expected to be made by
the Company in respect of services provided by employees up to the reporting date using the projected
unit credit method with actuarial valuation being carried out at each year-end balance sheet date.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions
are charged or credited to the statement of profit and loss in the period in which they arise.

Compensated absences which are not expected to occur within twelve months after the end of the
period in which the employee renders the related service are recognised based on actuarial valuation.

2.16 Retirement Benefits

The Company’s retirement benefit obligations are subject to number of assumptions including
discount rates, inflation and salary growth. Significant assumptions are required when setting these
criteria and a change in these assumptions would have a significant impact on the amount recorded in
the Company’s balance sheet and the statement of profit and loss. The Company sets these
assumptions based on previous experience and third-party actuarial advice.

2.17 Taxes on Income

Income tax expense comprises current tax expense and the net change in the deferred tax asset or
liability during the year. Current and deferred tax are recognized in the Statement of Profit and Loss,
except when they relate to items that are recognized in Other Comprehensive Income or directly in
equity, in which case, the current and deferred tax are also recognized in Other Comprehensive
Income or directly in equity, respectively.

(i) Current tax:

Current tax expenses are accounted in the same period to which the revenue and expenses relate.
Provision for current income tax is made for the tax liability payable on taxable income after
considering tax allowances, deductions and exemptions determined in accordance with the
applicable tax rates and the prevailing tax laws.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to
set off the recognized amounts and there is an intention to settle the asset and the liability on a net
basis.

(ii) Deferred Tax:

Deferred income tax is recognized using the balance sheet approach. Deferred tax assets and
liabilities are recognized for deductible and taxable temporary differences arising between the tax
base of assets and liabilities and their carrying amount in financial statements, except when the
deferred tax arises from the initial recognition of goodwill, an asset or liability in a transaction that
is not a business combination and affects neither accounting nor taxable profits or loss at the time
of the transaction.

Deferred income tax assets are recognized to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry forward of unused tax
credits and unused tax losses can be utilized.

Deferred tax liabilities are generally recognized for all taxable temporary differences except in
respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures where the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that
have been enacted or substantially enacted by the end of the reporting period.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they elate to income taxes levied by the
same taxation authority and the Company intends to settle its current tax assets and liabilities on a
net basis.

2.18 Borrowing Cost:

Borrowing cost includes interest cost and bank commissions incurred in connection with the
arrangement of borrowings. Borrowing cost directly attributable to acquisition or construction of
Fixed Assets which necessarily take a substantial period of time to get ready for their intended use,
incurred till the time of commencement of assets are ready to use or their intended use are capitalized.
All other borrowing costs are expensed in the period they occur.

2.19 Exceptional Items

The Company discloses certain financial information both including and excluding exceptional items.
The presentation of information excluding exceptional items allows a better understanding of the
underlying operating performance of the Company and provides consistency with the Company’s
internal management reporting.

Exceptional items are identified by virtue of either their size or nature so as to facilitate comparison
with prior periods and to assess underlying trends in the financial performance of the Company.

Exceptional items can include, but are not restricted to, gains and losses on the disposal of assets /
investments, impairment charges, exchange gain / (loss) on long term borrowings / assets and changes
in fair value of derivative contracts.

2.20 Earnings Per Share

Basic earnings per share is computed by dividing the profit or loss after tax by the weighted average
number of equity shares outstanding during the year adjusting the bonus element for all the reported
period arising on account of issue of equity shares on rights and including potential equity shares on
compulsory convertible debentures.

Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend,
interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive
potential equity shares, by the weighted average number of equity shares considered for deriving basic
earnings per share.

2.21 Statement of Cash Flows

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the
effects of transactions of non - cash nature and any deferrals or accruals of past or future cash receipts
or payments. Cash flow for the year are classified by operating, investing and financing activities.

Data Not Available