Freehold Land includes the value of (a) land allotted on lease basis to (i) Bharatiya Vidya Bhavan (0.69045 hectare) (ii) M/s Indian Oil Corporation Ltd (0.620 hectare) for laying pipeline (iii) land leased to M/s Cochin Air Products (0.30 hectare) and (b) land leased to Kerala State Electricity Board (0.47 hectare).

Value of land includes value of buildings acquired along with the land for which depreciation has not been provided as the value is not separately available and most of these buildings are likely to be demolished for putting up facilities for the factory.

Freehold land includes landed properties of the Company admeasuring 197.12 ares (487.00 cents) made up of 34.30 ares in Sy No. 713/11, 23.57 ares in Sy No. 713/12, 59.12 ares in Sy No. 713/13, 50.18 ares in Sy No. 714/06, 10.12 ares in Sy No. 714/2, 8.90 ares in Sy No. 714/4 and 10.93 ares in Sy No. 714/5 of land all are lying contiguously in Elamkulam village, Kanayannur taluk, Ernakulam Dist, Kerala provided as security for issue of Tax free bonds.

The company has bearer plants in its premises and other sites which generates nominal income .Cost of such bearer plants cannot be reliably measured and hence these plants were not capitalized.

Title deeds of all immovable properties are held in the name of the Company. In the case of following properties where the Company is the lessee, lease agreements are duly executed in favour of the lessee with the following exceptions:

* CSL has taken 8.12 Ha of land and 15 HA of water body on lease from COPT on 12 April 2013. A lease agreement was entered with COPT in this connection however the same has not yet been registered.

* CSL has also taken 8.134 HA of additional land area on lease from COPT on 16 Nov 2017 - Lease deed is yet to be executed and registered.

The company has executed concessionaire agreements with the Mumbai Port Trust and Kolkata port Trust to Upgrade, Operate and Manage Ship Repair facility at Hughes Dry Dock and specified berths at Indira Dock of MbPT and two dry docks and Berth No.6 of Netaji Subash Dock of KoPT respectively.

The project site at MbPT is taken on license for 29 years. The license agreement is yet to be registered, as a request submitted for waiver of the stamp duty to the Government of Maharashtra is under consideration.

The project site at Syama Prasad Mukherjee Port is taken on license for 30 years . As license agreement does not attract stamp duty and registration charges in West Bengal , Concession Agreement with KoPT has not been registered .

The Right to use of land and ship repair facility represents the upfront fee paid to Cochin Port Trust towards setting up of International Ship Repair Facility (ISRF) project, to be amortised over the period of lease which was further extended based on the date of obtaining of Environmental Clearance. As all environmental clearances for ISRF are obtained as on January 09, 2018, the lease period of 30 years effectively starts from this date.

Considering the indicators of the value of an investment such as investee's assets, results etc. a decline, other than temporary, in the value of investment in Cochin Waste to Energy (P) Ltd is noticed and accordingly fair value is considered as Nil .Similarly, increase in value of investment in Kerala Enviro Infrastructure Limited is noticed and accordingly investment is fair valued.

The Company's Investment in Cochin Shipyard Employees Consumer Co-operative Society Limited are non-participative shares and normally does not carry any voting rights. Hence, the company has carried this investment at its transaction value considering to be its fair value.

At the beginning of the current year, the Company had invested in the equity share capital of Hooghly Cochin Shipyard Limited (HCSL), a sum of H4935.34 lakhs, comprising of 5,00,00,000 shares of H10 each, during the period from 2017 to 2021. Out of the above 2,80,00,000 shares of H10 each were acquired through rights share.

During the year the Company has made further investment of H4600.00 lakhs comprising 4,60,00,000 of H10 each again on a rights basis, and the total investment in HCSL at the end of the year is H9535.34 lakhs.

The Company had acquired Temba Shipyard Limited, now renamed as Udupi Cochin Shipyard Limited, by an Order of NCLT by investing H6500.00 lakhs comprising of 6,50,00,000 shares of H10 each. During the year the company has made further investment of H25,00,00,000 comprising 2,50,00,000 of H10 each again on a rights basis, and the total investment in UCSL at the end of the year is H9000 lakhs.

The equity shares issued on rights basis shall rank pari passu with the existing equity shares of the Company in all respects, The above investment are accounted at cost in accordance with IND AS 27-Separate Financial Statement.

Terms & Rights attached to Equity shares: The Company has only one class of equity shares having a face value of ?10 per share which is fully paid up. Equity shareholders are eligible for one vote per share held, and are entitled to dividends as and when declared by the Company. Interim dividend is paid as and when declared by the Board. Final dividend proposed by the Board of Directors is subject to approval/regularisation by the share holders in the Annual General meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

Movement of each item in Other Equity is detailed in Statement of Changes in Equity.

Capital Reserve: Capital reserve includes H263.56 lakhs being restoration charges received from Ms Indian Oil Corporation Ltd for laying pipe line through the Company's land.

Capital Redemption Reserve: Capital Redemption Reserve of ?12353.76 includes ?11914.20 lakhs being reserves created on redemption of preference shares and ?439.56 lakhs being a sum equal to the nominal value of the shares bought back, which will be utilised for the purpose defined under the Companies Act 2013.

Securities Premium: Premium on tax free bonds is amortised on straight line basis over the period of bonds. The company had completed the Initial Public Offer (IPO) during 2017-18 and had allotted 22656000 equity shares of H10 each at premium ( H93929.76 lakhs). Expenses incurred net of deferred tax adjustment towards such allotment of shares amounting H777.93 lakhs has been debited in Securities Premium in accordance with the requirements of Indian Accounting Standard (Ind AS) 32- Financial Instruments.

Debenture Redemption Reserve: The Company was hitherto creating Debenture Redemption Reserve at 25% of the value of bonds issued by the company over the maturity period of such debentures in accordance with Section 71(4) of the Companies Act, 2013 read with Rule 18(7) of the Companies (Share Capital and Debentures) Rules, 2014 and as per SEBI (Issue and Listing of Debt Securities) Regulations, 2008. As per the amendment made to the Companies (Share Capital and Debentures) Rules, 2014 notified vide Notification No. G.S.R. 574(E) by the Ministry of Corporate Affairs, the company is not required to create Debenture Redemption Reserves in respect of the bonds issued by it. However, the Debenture Redemption Reserve already created up to 30.09.2019, H1668.44 lakhs, shall be retained in the books till the time of redemption of the bonds.

General Reserve: General reserve is primarily created to comply with the requirements of section 123(1) of the Companies Act, 2013. This is a free reserve and can be utilised for any general purpose like issue of bonus shares, payment of dividend, buy back of shares etc. The Company created a General reserve in earlier years pursuant to the provisions of the Companies Act,1956 where in certain percentage of profits were required to be transferred to General reserve before declaring dividends. As per the Companies Act 2013, the requirements to transfer profits to General reserve is not mandatory.

Cash flow Hedge Reserve: Cash flow hedge reserve represents the effective portion of change in the fair value of designated hedging instruments recognised in the Other Comprehensive Income. (Refer Note No. 46)

Interim dividend : During the year, the Company paid interim dividends of H7 per equity share of face value of H10 and H7 per equity share of face value of H10, as recommended at the board meetings held on Nov 10, 2022 and Feb 10, 2023 respectively.

Proposed dividend :The Board of Directors of the Company have recommended a final dividend of H3.00 per equity share of face value of H10 for the financial year ended March 31, 2023 at the Board meeting held on May 19, 2023. This is subject to approval/ regularisation by the share holders in the Annual General meeting.

a) Tranche 1: 1000 bonds of face value of ?10 lakhs totalling ?10000 lakhs with interest rate of 8.51% payable annually , redeemable at par, due for redemption on 02nd December 2023.

b) Tranche 2: 230 bonds of face value of ?10 lakhs totalling ? 2300 lakhs with interest rate of 8.72% payable annually, redeemable at par, due for redemption on 28th March 2029 .

These bonds are secured against the landed properties of the Company admeasuring 197.12 ares (487.00 cents) made up of 34.30 ares in Sy No. 713/11, 23.57 ares in Sy No. 713/12, 59.12 ares in Sy No. 713/13, 50.18 ares in Sy No. 714/06, 10.12 ares in Sy No. 714/2, 8.90 ares in Sy No. 714/4 and 10.93 ares in Sy No. 714/5 of land all are lying contiguously in Elamkulam village, Kanayannur taluk, Ernakulam Dist, Kerala.

Utilisation: Out of the issue proceeds of ?12300 lakhs received, the Company has fully utilised/adjusted funds towards various expenditure incurred on International Ship Repair Facility (ISRF) project.

Difference between carrying amounts and fair values of financial liabilities of borrowings is not significant in each of the year presented.

IAC Trade Payables include H1,774.84 lakhs payable to MSME vendors which are not due as on 31 March 2023.

The company has incurred H37,377.15 lakhs till 31 March 2023 (H34,808.21 lakhs till 31st March 2022) towards augmentation of infrastructure facility out of funds received from Indian Navy. The ownership of the assets created out of the said funds vests with Indian Navy.

Stock of raw materials and bought out components procured under "Cost Plus" part of the IAC contract amounting to ?6966.24 lakhs (previous year ?8977.28 lakhs) held on behalf of Indian Navy lying with the Company is adjusted against Advances from Indian Navy for Indigenous Aircraft Carrier.

During the Financial Year 2022-23, the Company has handed over the Indigenous Aircraft Carrier (IAC P-71) to Indian Navy in accordance with the contract for the construction of IAC P-71. The Company has raised Invoice for H1915000 lakhs on achievement of the delivery milestone of the contract. The balance scope of work will be completed subsequently within 2 years as per the construction contract.

1. Revenue is recognized when the company satisfies performance obligations by transferring promised goods and services to the customer over a period of time using output method based on measurement of physical performance completed to date. Output method faithfully depicts the Company's performance towards complete satisfaction of the performance obligation and gives clear picture of Company's efforts and hence the same is being adopted to depict the performance completed to date.

2. Refer Note No 44 on Ind AS 115 "Revenue from Contract with Customers".

3. Out of the Revenue from Operations, H6905.65 lakhs (H9503.19 lakhs in previous year) pertain to revenue from export orders.

4. The Company has considered the lock down period due to COVID 19 & Gol circular dated May 13, 2020, which ever is applicable to the projects and Kerala Flood natural calamity 2018 as Force Majeure period for computation of Liquidated Damages while calculating Revenue from operations.

5. With regard to the Shipbuilding contract with Andaman & Nicobar ('A&N') Administration for construction of 2 Nos 1200 Passenger Vessels, the contractual delivery dates (as extended) for SH.0023 is already expired and other vessel SH.0024 is nearing expiry. The Company has provided for LD for the delay upto 29 Apr 2023 and 30 Oct 2023 in respect of SH.0023 & SH.0024 respectively. At the request of the A&N administration for reallocation of the vessel for other prospective buyers, the delivery of ships has been abated, with minor progress. Since the Company has a valid contract with A&N Administration, the company has not recognized further liquidated damages in the financials beyond the dates mentioned above.

6. Ship Building Financial Assistance ('SBFA') provided by Govt. of India is to compensate the cost incurred by the company in building the vessels and it is not for the losses already incurred. Prior to 2016, SBFA was named as "Shipbuilding Subsidy", with an intention to subsidize the cost/compensating the cost of construction of vessel. Subsequently the term has been reworded as "Ship Building Financial Assistance", without any change in the intention of the Government, modality, principles and procedure of the policy. During FY 2022-23 ,SBFA is recognised over a period of time in proportion to the expenses / cost incurred as against 'recognition based on physical performance' which was followed in previous years. The impact of the same H85.21 lakhs is charged to P&L account.

7. Cochin Shipyard Ltd (CSL) has entered into an Agreement with the Andaman and Nicobar Administration to commence its operations at Marine Dockyard, at Port Blair, a facility that is currently being operated directly by the A&N Administration. Management fee on pro rata basis is accounted based on this agreement. Under the ambit of this Agreement signed on 28 Nov 2019, CSL shall assist the Administration to set up a Ship repair ecosystem at A&N islands.CSL shall also associate in Augmentation and Modernisation of the facility and also focus efforts towards Skill Development in the Islands in consultation with the Administration and Technical Institutions located in the Islands.

Contribution to Provident Fund and Family Pension Fund includes provident fund inspection and administration charges H43.62 lakhs (previous year ?20.46 lakhs )

Salaries, Wages, bonus/exgratia and allowances includes provision for encashment of half pay compensated absences for workmen amounting to ?13.26 lakhs (previous year ?47.67 lakhs)

The employee benefits accruing to the employees on deputation from Cochin Port Trust and Mumbai Port Trust are being accounted based on demands received from Cochin Port Trust & Mumbai Port Trust as per tripartite agreement between the Company, Cochin Port Trust & Mumbai Port Trust and the recognised Trade unions of the Port and not based on actuarial valuation except for gratuity which is actuarially valued.

Post-employment obligations

Provident fund

Provident Fund for eligible employees is managed by the Company through a trust in line with the Provident Fund and Miscellaneous Provision Act,1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employees and employer @12% of basic salary (including Dearness Allowance) together with the interest accumulated thereon are payable to employees at the time of separation from the Company or retirement whichever is earlier The benefits vests immediately on rendering of the services by the employee. The contribution is charged to Statement of Profit and Loss of the year when the contributions to the respective funds are due in accordance with relevant statute. Employer's contribution to Provident Fund & Family Pension fund is H2028.84 lakhs for the year 2022-23 (H1353.43 lakhs for the year 2021-22). The minimum interest rate payable by the trust to the beneficiaries every year is notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust (including investment risk fall) and the notified interest rate, which is determined on the basis of actuarial valuation.

The Company has obtained report on the determination and disclosure of interest rate Guarantee, valuation of Assets & Liabilities as per Ind AS 19 of Employees Benefits relating to Exempt Provident Fund for the period ended 31st March 2023.

• National Centre of Excellence for Green Port & Shipping (NCoEGPS) is a major initiative by the Ministry of Ports, Shipping and Waterways (MoPSW) towards providing greener solutions. The Energy and Resources Institute (TERI) is the knowledge and implementation partner for this project. The centre aims to develop a regulatory framework and alternate technology adoption road map for Green Shipping to foster carbon neutrality and circular economy (CE) in shipping sector in India. MoPSW, Deenadayal Port Authority Kandal, Paradip Port Authority Paradip, V O Chidambaranar Port authority Thoothukudi & Cochin Shipyard Ltd have partnered to develop NCoEGPS by providing funding support for infrastructure development and supporting research and capacitybuilding activities for 5 years. During FY 22-23, CSL has paid H475.00 lakhs to TERI which has been reported as R&D expenses.

• Ushus is a startup support program of CSL in association with IIMK LIVE & IIT Madras to augment the Government of India's initiatives to encourage and develop an ecosystem in India to support Maritime Startups. As part of this program maritime startups will receive seed funds from CSL as grants/investments. IIMK LIVE & IIT Madras will review and recommend the proposals received under this scheme for investment by CSL. Fee for their services amounts to H18.50 lakhs.

• M/s Boston Consulting group was entrusted for preparation of detailed report for Setting up of Ship repair cluster (Mumbai & Kochi) in India in line with MoPSW's Maritime India Vision-2030 for an amount of H343.00 lakhs

The land and water area on which the International Ship Repair Facility (ISRF) project is taken on lease from Cochin Port Trust. The company has commenced development of the new ship repair facility with effect from 09th Jan 2018. The lease period of 30 years commences from date of Environmental Clearance. The Company has not considered capitalization of said cost amounting to H8288.21 lakhs from the commencement of project construction/development till 31 Mar 2023. As the amount is less than the materiality level arrived by the Company, the management rectified/corrected the prior periods error amounting to H6181.35 lakhs during the year, which was duly classified as 'Exceptional items'.

Details of transaction price allocated to unsatisfied/ partially satisfied performance obligations:

Aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period amounts to H1693669.58 lakhs (excluding Cost Plus Part of IAC contract).The amount of transaction price relating to unsatisfied performance obligation that are part of a contract that has an original expected duration of one year or less has not been included in the above disclosure as permitted under Ind AS 115. Further the estimate of the transaction price as above would not include any estimated amounts of variable consideration that are constrained. Management expects that 19.63 % of transaction price allocated to unsatisfied/ partially satisfied contracts as of 31.03.2023, as stated above, will be recognised as revenue during FY 2023-24 and the remaining thereafter.

Note 45: Additional Disclosures under Ind AS 116-"Leases"

Rent and Hire charges Expense includes expense incurred for the year ended 31.03.2023 relating to Short term leases and leases of low value assets amounting to H130.23 lakhs (Previous year H83.83 lakhs).

Total Cash outflow for leases for the year ended March 31, 2023 including outflow for short term and low value leases is H2548.22 lakhs (Previous year H2560.62 lakhs).

The Company has lease term extension options that are not reflected in the measurement of lease liabilities.

Note 46: Additional Disclosures for Hedge Accounting

The company enters into foreign exchange derivative contracts to offset the foreign currency risks arising from the amounts denominated in currencies other than Indian Rupee. The counter party to the company's foreign currency forward contracts is generally a bank.

47.1. CONTINGENCIES AND COMMITMENTS

The Income Tax Assessment of the company has been completed up to AY 2020-21.

Demands raised as per the assessment orders totaling ?2,236.53 lakhs for the Assessment Years 2010-11, 2014-15, 2018-19,201718, 2020-21, and 2021-22 are shown under Contingent Liability pending disposal of the appeals filed before the Commissioner of Income Tax (Appeals). The demands are mainly due to the disallowance of certain genuine claims. However, the above demands have been adjusted against the refund due for the subsequent years.

48. Value of advance Bank Guarantee/Indemnity Bond outstanding as on reporting date is H690720.85 lakhs ( Previous year H514684.76 lakhs)

49. Litigations :

The Company is subject to legal proceedings and claims, in the ordinary course of business. The Company's Management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have material and adverse effect on the Company's results of operation.

Nature of transaction - Transaction with other related parties

As CSL is a Government company under the control of Ministry of Shipping, Ports and Waterways (MoPSW), the Company has availed exemption from detailed disclosures prepared under Ind AS 24 with respect to related party transactions with Government and Government related entities.

However, as required under Ind AS 24, following are the individually significant transactions:

CSL's ERP system, 'SAP S/4HANA' has been implemented both in UCSL & HCSL with the entire SAP implementation cost and licenses charges for the financial year 2022-23, aggregating to H77.88 lakhs, being borne by the Company on behalf of its subsidiaries, given that the Subsidiaries operations are in a nascent stage and the cash outgo would have a negative impact on their financial position. Since the costs have been borne by CSL, it is considered to be a related party transaction not at arm's length basis and Board approval has been granted under the provisions of Section 188 of the Companies Act, 2013.

In addition to the above, around 94.44 % (approx) of the companies turnover and 96.74% (approx) of trade receivables and customer advance is with respect to Government and Government related entities.

52. FINANCIAL INSTRUMENTS

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels:

Level I Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level II Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level III Inputs are unobservable inputs for the asset or liability.

1. The investments in equity instruments are not held for trading. Instead, they are held for medium or long term strategic purpose. The Company has chosen to designate these investments in equity instruments of Subsidiary at cost (as per Ind AS 27 ) and other equity instruments at FVTOCI (as per Ind AS 109), as the directors believe that this provides a more meaningful presentation of medium or long term strategic investments, than reflecting changes in fair value immediately in profit or loss. The investments in debt instruments are not held for trading. Upon the application of Ind AS 109, the Company has chosen to designate these investments at Amortised Cost.

Investments included in level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a wide range of possible fair value measurements and the cost represents estimate of fair value within that range.

There were no transfers between Level 1 and 2 in the period.

2. Loans, Borrowings are at the market rates and therefore the carrying value is the fair value.

3. The carrying amount of trade receivables, trade and other payables and short term loans are considered to be the same as their fair value due to their short term nature.

Difference between carrying amounts and fair values of bank deposits, other financial assets,other financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the years presented

53. Financial Risk Management Policy

Financial Risk Management Objective and Policies:

The Company's principal financial liabilities, other than derivatives, comprise of loans and borrowings, trade and other payables and advances from customers. The Company's principal financial assets include Investment, loans and advances, trade and other receivables and cash and bank balances that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Board provides written principles for overall risk management as well as policies covering specific areas such as foreign exchange risk, interest rate risk, credit risk, the use of derivative financial instruments and non-derivative financial instruments, and the investment of excess liquidity. The Company does not enter into or trade financial instruments, including derivatives for speculative purposes.

Market Risk

Market risk is the risk that the fair value of future cash flows of financial assets will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk, being mainly commodity price risk. Financial Assets affected by market risk include loans and advances, deposits and derivative financial instruments.

A. Interest rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates is minimal since the exposure relates primarily to the Company's long-term debt obligations of redeemable non-convertible bonds with fixed interest rates as disclosed in Notes 22 and 27. With the current profile of fixed rate borrowing, the company is not sensitive to interest rate fluctuations.

B. Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency).

Foreign currency risk of the company is managed through a properly documented risk management policy approved by the board. The Board of directors also reviews the foreign currency exposure of the Company on quarterly basis. The company manages the net foreign currency risk mainly by entering into forward contracts with the bank as the counter party. The disclosures of outstanding forward contract as on reporting date is given in Note 46.

C. Commodity Price Risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the purchase of steel, major machineries, equipments etc. The Company primarily purchases its raw materials in the open market from third parties. The Company is therefore subject to fluctuations in prices for the purchase of steel, being the primary raw material inputs. The Company aims to sell the finished products based on firm contract which is negotiated after due consideration of the expected raw material prices. Therefore, the Company plans its purchases closely to optimise the price. Further since the products are of a specific nature which does not entail competition and is heterogeneous in nature due to its specification, the company's exposure to commodity risk is minimal.

Liquidity Risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk may arise from an inability to sell a financial asset quickly at a rate close to its fair value.

Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and advances to suppliers) and from its exposure to other financial assets, including deposits with banks and financial institutions, derivative instruments, and other financial instruments. The company has adopted a policy of only dealing with counterparties that have sufficiently high credit rating in order to manage the credit risk. Trade receivables mainly comprise of government entities and the cash and cash equivalents and derivative instruments are maintained with banks and recognised financial institutions with high credit rating.

For trade receivables, as a practical expedient the company computes credit loss allowance based on a provision matrix which considers historically observed default rates over expected life of trade receivables, adjusted for forward looking estimates. The movement in expected credit loss allowance is disclosed in Note 14.

The Company's maximum exposure to the credit risk for the components of Balance Sheet as 31st March 2023 and 31st March 2022 is the carrying amounts mentioned in Note no 14 and as stated in Note 53, around 94.44%(approx) of company's turnover and 96.74% (approx.) of trade receivables and customer advance it with respect to Government and Govt. regulated entities. The maximum exposure relating to financial derivative instruments and financial guarantees is disclosed in Note 46 and Note 47 respectively.

The Company has two major business segments -"Ship Building" and "Ship Repair". Revenue under Ship building includes H155800.89 lakhs (Previous year: H204473.56 lakhs) from one customer (Previous year: one customer) having more than 10% revenue of the total revenue, and for Ship repair includes H193571.56 lakhs (Previous year: H40786.31 lakhs) from two customers ( Previous year: two customers) having more than 10% revenue of the total revenue.

56. Capital Management

The company's objective when managing capital are to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and maintain an optimal capital structure to reduce the cost of capital.

For the purpose of capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the parent. The company is not subject to any externally imposed capital requirements.

To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return on capital to shareholders or issue new shares. The company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings (including bonds).

57. Consumption of imported goods/services for the year amounts to H74122.85 lakhs (H92189.67 lakhs in previous year)

58. No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

59. The Company has no borrowings from banks or financial institutions on the basis of security of current assets. The company has been sanctioned aggregate Non -Fund based limits in excess of H5 Crores by the multiple banks, which are availed as and when required . It has also been sanctioned aggregate fund based limits in excess of H5 Crores by multiple banks which has not been availed by the company. The company is not required to file any quarterly returns or statements with the banks.

60. The company is not declared wilful defaulter by any bank or financial Institution or other lender.

61. The company has no transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

62. The Company has entered agreement with Andaman & Nicobar Administration on a long term license basis for a period of 30 years from November 2019 onwards for developing, designing, constructing, modernising, operating, maintaining and managing the existing shiprepair facility which is named as CSL-AN Ship Repair Unit (CANSRU)

63. There are no charges or satisfaction yet to be registered with ROC beyond the statutory period

64. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. No funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

65. The company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence disclosures relating to it are not applicable.

66. In the case of contracts/ sub-contracts, wherever final bills are not submitted by the contractors for the work done as at the close of the year, liability is estimated and provided based on the work done.

67. The Company has made adequate provision towards material foreseeable losses wherever required, in respect of long term contracts. The Company do not have any long term derivative contracts for which there were any material foreseeable losses.

68. Figures in brackets denote negative figures.

69. Previous year figures have been regrouped and classified wherever necessary to conform to the current year presentation.

Corporate overview and Significant Accounting Policies 1-2

Notes to the Standalone Financial Statements 3-69