3.14.Provisions & Contingent Liabilities
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of a
past event and it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made
of the amount of the obligation. When the Company
expects some or all of a provision to be reimbursed, the
reimbursement is recognised as a separate asset, but only
when the reimbursement is virtually certain. The expense
relating to a provision is presented in the statement of
profit and loss net of any reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost. Provisions are reviewed at each balance
sheet and adjusted to reflect the current best estimates.
Disclosure of contingent liability is made when there is a
possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not
wholly within the control of the Company or a present
obligation that arises from past events where it is either
not probable that an outflow of resources embodying
economic benefits will be required to settle or a reliable
estimate of amount cannot be made.
Contingent assets are neither recognised nor disclosed.
3.15.Taxes
Current Income Tax
The tax currently payable is based on taxable profit for
the year. Taxable profit differs from 'Profit before tax' as
reported in the Statement of Profit and Loss because
of items of income or expense that are taxable or
deductible in other years and items that are never taxable
or deductible. The Company's current tax is calculated
using tax rates that have been enacted or substantively
enacted, by the end of the reporting period in accordance
with the provisions of the Income-tax Act, 1961.
Current tax is recognised as an expense or income in the
Statement of Profit & Loss, except when they relate to
items credited or debited either in other comprehensive
income or directly in equity, in which case the tax is also
recognised in other comprehensive income or directly in
equity respectively.
Deferred Tax
Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax
bases used in the computation of taxable profit. Deferred
tax liabilities are recognised for all taxable temporary
differences. Deferred tax assets are generally recognised
for all deductible temporary differences to the extent that
it is probable that taxable profits will be available against
which those deductible temporary differences can be
utilised.
The deferred tax assets are reviewed at the end of each
reporting period and are reduced to the extent that it is
no longer probable that sufficient taxable profit will be
available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year 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 end of the reporting date.
Deferred tax is recognised as an expense or income in
the Statement of Profit & Loss, except when they relate to
items credited or debited either in other comprehensive
income or directly in equity, in which case the tax is also
recognised in other comprehensive income or directly in
equity respectively.
3.16. Employee Benefit Expenses
Short-term Employee Benefits
The undiscounted amount of short-term employee
benefits expected to be paid in exchange for the services
rendered by employees are recognised as an expense
during the period when the employees render the services.
Post-employment Benefits
Defined Contribution Plans
The Company recognises contribution payable to the
provident fund scheme as an expense, during the period
in which employee renders the related service. If the
contribution payable to the scheme for service received
before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is
recognised as a liability. If the contribution already paid
exceeds the contribution due for services received before
the balance sheet date, then excess is recognised as an
asset to the extent that the pre-payment will lead to a
reduction in future payment or a cash refund.
Defined Benefit Plans
The Company pays gratuity to the employees as per
the applicable labour laws at the time of retirement /
resignation / death while in employment. The liability in
respect of gratuity and other post-employment benefits
is calculated using the Projected Unit Credit Method
and spread over the period during which the benefit is
expected to be derived from employees' services.
Re-measurement gains and losses arising from
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur in Other
Comprehensive Income.
3.17. Revenue Recognition
The Company derives revenue primarily from rendering
of services.
Revenue is recognized upon transfer of control of
promised services to customers in an amount that reflects
the consideration the Company expects to receive in
exchange for those services. Revenue excludes amounts
collected on behalf of government authorities such as
Goods and Service Tax (GST), returns, trade allowances,
rebates and amounts collected on behalf of third parties.
Revenue from rendering of services is recognized over
the time by measuring the progress towards complete
satisfaction of performance obligations at the reporting
period.
Demurrage revenue is recognised at the time when the
performance obligations under the contract is satisfied.
Revenue is measured based on the transaction price,
which is the consideration, adjusted for volume
discounts, rebates, scheme allowances, price concessions,
incentives, and returns, if any, as specified in the contracts
with the customers. Revenue excludes taxes collected
from customers on behalf of the government. Accruals
for discounts/incentives and returns are estimated
(using the most likely method based on accumulated
experience and underlying schemes and agreements
with customers). Due to the short nature of credit period
given to customers, there is no financing component in
the contract.
3.18.Other Income
Interest Income
Interest income from a financial asset is recognized when
it is probable that the economic benefits will flow to the
Company and the amount of income can be measured
reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the
expected life of the financial asset to that asset's net
carrying amount on initial recognition.
Dividend income
Dividends are recognised in the Statement of Profit and
Loss on the date on which the Company's right to receive
payment is established.
3.19. Finance Costs
General and specific borrowing costs that are attributable
to the acquisition, construction or production of a
qualifying asset are capitalised as part of the cost of such
asset till such time the asset is ready for its intended use
and borrowing cost are being incurred. A qualifying asset
is an asset that necessarily takes a substantial time to get
ready for its intended use. All other borrowing costs are
recognised as an expense in the period they are incurred.
Borrowing cost includes interest expense, amortisation of
discounts and ancillary costs incurred in connection with
borrowing of funds.
3.20. Earnings per share
Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period. The average
weighted average number of equity shares outstanding
during the period and for all periods presented is
adjusted for events, such as bonus shares, other than the
conversion of potential equity shares that have changed
the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of
shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares. There are no
potential equity shares outstanding during the year and,
accordingly, basic and diluted earnings per share are the
same.
3.21. Cash Flow Statement
Cash flows are reported using the indirect method,
whereby profit / (loss) for the period 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 item of income or expenses associated
with investing or financing cash flows. Cash flows for the
year are classified by operating, investing and financing
activities.
3.22. Leases
Company as a Lessee
The Company's lease asset classes primarily consist of
leases of land. The Company assesses whether a contract
contains a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right to control
the use of an identified asset for a period in exchange for
consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Company
assesses whether : (1) the contract involves the use of an
identified asset (2) the Company has substantially all of
the economic benefits from use of the asset through the
period of the lease and (3) the Company has the right to
direct the use of the asset. At the date of commencement
of the lease, the Company recognises a right-of-use asset
("ROU") and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases
with a term of twelve months or less (short-term leases)
and low value leases. For these short-term and low value
leases, the Company recognises the lease payments as an
operating expense on a straightline basis over the term of
the lease.
Certain lease arrangements include the options to extend
or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options
when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognised at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses. Right-of-use assets are depreciated
from the commencement date on a straight-line basis
over useful life of the underlying asset. The lease liability
is initially measured at amortised cost at the present
value of the future lease payments. The lease payments
are discounted using the interest rate implicit in the lease
or, if not readily determinable, using the incremental
borrowing rates in the country of domicile of the leases.
Lease liabilities are remeasured with a corresponding
adjustment to the related right-of-use assets if the
Company changes its assessment of either exercising an
extension or a termination option. Lease liability and ROU
asset have been separately presented in the Balance Sheet
and lease payments have been classified as financing cash
flows.
Company as a lessor
Leases can be classified as finance or operating leases.
In making the assessment, certain indicators, such as
whether the substantial risks and rewards of ownership
of the underlying asset continue with the Company, and
whether the contract is for a major part of the economic
life of the asset, are considered.
Based on the aforementioned assessment, the time
charter contracts for ships and hire contracts for vehicles
of the company does not contain operating lease
component for the purpose of Ind AS 116, 'Leases'-Refer
Note No. 4.1.
3.23.Segment Reporting:
An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses, whose operating
results are regularly reviewed by the Company's Chief
Operating Decision Maker ("CODM") to make decisions
and for which discrete financial information is available.
Operating segment is reported in a manner consistent
with the internal reporting provided to Chief Operating
Decision Maker (CODM).
Recent Accounting Developments :
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as
issued from time to time.
In May 2025, MCA notified amendments to Ind AS 21, 'The
Effects of Changes in Foreign Exchange Rates', applicable
w.e.f. April 01, 2025. The Company has reviewed the
amendment and based on its evaluation has determined
that it does not have any significant impact in its
standalone financial statements.
In August 2025, MCA notified the following amendments
to :
1. Ind AS 1, 'Presentation of Financial Statements',
applicable w.e.f. April 01, 2025 - The amendment
relates to classification of liabilities as current
or non-current and non-current liabilities with
covenants. In the context of classifying a liability as
current, it removes the requirement of existence of
a right to defer settlement for at least 12 months
after the reporting date and instead requires that
the said right should exist on the reporting date and
have substance. The amendment also introduces
guidance on classification of liabilities with
covenants. The Company has no impact of these
amendments in its classification criteria of current
and non-current liabilities.
2. Ind AS 7, 'Statement of Cash Flows' and Ind AS 107,
'Financial Instruments : Disclosures', applicable
w.e.f. April 01, 2025 - The amendment in Ind AS 7
requires to inform users of financial statements of
the existence of supplier finance arrangements and
explain the nature of the arrangements, the carrying
amount of liabilities and the range of payment
due dates. Ind AS 107 has been amended to add
supplier finance arrangements as a factor that may
cause concentration of liquidity risk. The Company
has reviewed the amendment and based on its
evaluation has determined that it does not have
any significant impact in its standalone financial
statements.
3. I nd AS 12, 'Income Taxes'-International Tax Reform
- Pillar Two Model Rules applicable immediately-
The amendments provide a temporary mandatory
relief from deferred tax accounting for top-up
tax and disclose that they have applied the relief.
The Company has reviewed the amendment and
based on its evaluation has determined that it does
not have any significant impact in its standalone
financial statements.
Terms and Rights:
(i) The company has only one class of equity shares having a face value of '10/- per share. Each holder of equity shares is
entitled to one vote per share. The company declares and pays dividends in Indian Rupees. Interim dividend is paid as
recommended by Board of Directors.
(ii) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the
company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.
(i) There are no shares reserved for issue under options and contracts or commitments for sale of shares.
(ii) On April 11, 2024, 1,00,000 Equity shares having face value of Rs 10 each were issued as initial subscription of
money in lieu of the partners' capital on conversion of erstwhile Partnership Firm M/s Shreeji Shipping.
(iii) On September 09, 2024, 4654 Equity shares having face value of Rs 10 each and at premium of Rs 3,60,808 per
share were issued in the form of right issue by capitalising the Director's Loan
(iv) On 12 September 2024 the Company capitalised Rs 1,46,51,56,000 from its securities-premium account and allotted
14,65,15,600 fully-paid equity shares of ? 10 each to existing shareholders in the ratio of 1,400 bonus shares for
every 1 share held (1400 : 1). No consideration was received in cash
(v) There are no securities convertible into equity shares.
Nature and purpose of each reserve: -
Securities Premium Reserve - The amount received in excess of face value of the equity shares is recognised in
Securities Premium Account. This Account is utilised in accordance with the provisions of the Companies Act 2013.
Retained earnings - Retained Earnings are the profits that the company has earned till date, less any transfers to
reserves and dividend distribution to shareholders.
The Board of Directors has paid interim dividend of '1 per equity share of '10/- each during the year. The outgo on this
account was '162.92 Million ).
Other Comprehensive Income - Other Comprehensive Income consists of actuarial gains or losses arising from
remeasurement of defined employee benefit plans. Remeasurement are not reclassified to profit & loss subsequently.
Tonnage Tax Reserve : Tonnage Tax Reserve is created as per the provisions of the Section 115VT of the Income Tax Act,
1961, whereby a minimum of 20% of book profits from the tonnage tax activities is to be utilized for acquiring new ships
within 8 years.
Note on Borrowings:
i) Car loan from Lexus financial services
Secured vehicle loan of ?28.50 million sanctioned on 29 March 2023, carrying interest at 7.60% per annum (fixed). The
loan was repayable in 25 equal monthly instalments of ?1.23 million each, commencing from 20 April 2023. The loan
was fully repaid on 20 April 2025. The loan was secured by way of hypothecation of the Lexus LX 500D motor vehicle
financed under the facility.As at the reporting date, no amount is outstanding under the above facility.
ii) Vehicle loan from Tata Motors Finance Limited
Secured vehicle loans aggregating to ?78.50 million, sanctioned on 28 March 2023 for financing the acquisition of 20
commercial trucks (?3.93 millions loan of each truck), carrying interest at a fixed rate of 8.66% per annum. The loans
were repayable in 24 equal monthly instalments of ?0.18 per vehicle, commencing from 02 May 2023 and ending on 02
April 2025. The loans were secured by way of hypothecation of the respective financed vehicles. The loans have been
fully repaid, and no amount is outstanding as at the reporting date.
iii) Vehicle loan from Indian bank
Secured vehicle loan of ?10.50 million, sanctioned on 27 June 2024, carrying interest at a fixed rate of 8.80% per annum.
The loan is repayable in 24 equal monthly instalments of ?0.48 million each, commencing from 7 July 2024 and ending
on 7 June 2026. The loan is secured by way of hypothecation of the financed vehicle.
iv) Term Loan - UCO Bank
Secured term loan of ?46.70 million sanctioned on 30 August 2025 for financing 5 Tata Hitachi Machines, comprising
a loan of ?9.34 million per machine, carrying interest at a overnight MCLR rate of 1 year with monthly rests. The loan is
repayable in 24 equal monthly instalments, commencing from 30 September 2025 and ending on 30 August 2027, and
is secured by way of hypothecation of the financed machines.
v) Vehicle Loan from Indian Bank
Secured vehicle loan of ?23.50 million sanctioned on 02 April 2025 for financing 1 Range Rover vechile, carrying interest
at a fixed rate of 8.55% p.a. The loan is repayable in 27 equal monthly instalments, commencing from 9 May 2025 and
ending on 9 July 2027, and is secured by way of hypothecation of the financed vehicle.
vi) Term Loan from Axis Bank Limited
Secured term loan of ?31.50 million sanctioned on 7 January 2026 for financing 3 Tata Hitachi Machines, comprising
a loan of ?10.50 million per machine, carrying interest at a fixed rate of 7.75% p.a. The loan is repayable in 37 equal
monthly instalments, commencing from 5 February 2026 and ending on 5 February 2029, and is secured by way of
hypothecation of the financed machines.
vii) Term Loan from Caterpillar Financial Services India Private Limited
Secured term loan of ?39.29 million sanctioned on 17th December 2025 for financing 5 Loaders, comprising a loan
of ?7.86 million per loader (approx.), carrying interest at a fixed rate of 7.65% p.a. The loan is repayable in 48 equal
monthly instalments, commencing from 15 January 2026 and ending on 15 December 2029, and is secured by way of
hypothecation of the financed loaders.
viii) Term Loan from HDFC Bank Limited
Secured term loan of ?500.00 million sanctioned on 07 January 2026 for financing 5 Barges, including four (4) under
construction and carrying interest at a floating rate linked to one month repo rate The loan is repayable in thirty-six (36)
equal installments after a moratorium of three (3) months, with first payment commencing from 01 January 2026, and
is secured by way of hypothecation of the financed barges. As at the balance sheet date, amounts paid towards the four
(4) barges under construction, aggregating ? 397.44 million paid out of the said loan, have been included in the "Capital
Advances" under Other Non-Current Assets,
ix) Term Loan from Kotak Mahindra Bank Limited
Secured term loan of ?500.00 million sanctioned on 05 November 2025 financed against two (2) Floating Cranes, two
(2) tugs, one (1) Mini bulk carrier as primary security and thirty (30) shore-handling equipments as collateral security,
carrying interest at a floating rate linked with 3 month repo rate. The loan is repayable in 48 equal monthly instalments,
commencing from 01 January 2026.
Note on Borrowings:
i) In respect of working capital loans, quarterly returns or statements of current assets filed by the Company with banks,
are in agreement with the books of account, except for the following items which are reported differently for the reasons
stated below :-
- Steel procured for dry-docking, which is reported as stock of steel in the quarterly statements filed with the bank,
due to pending completion of the dry-docking activity, whereas in the books of account it is capitalised as Capital
Work-in-Progress in accordance with recognition criteria prescribed under Ind AS 16.
- Trade receivables from one of the customers, which have been offset against the corresponding trade payable
due to the said customer as part of the financial statement closing process, resulting in a lower amount of trade
receivables in the audited books of account as compared to the amount reported in the quarterly statement filed
with the bank, wherein such receivable and payable were reflected on a gross basis, and certain other changes
in the value of trade receivables arising upon completion of quarterly financial statement closing activities
subsequent to submission of provisional quarterly statements to the bank.
- Trade receivables and trade payables pertaining to group entities, which, in accordance with the terms of the
sanction letter, are required to be excluded from the quarterly statements submitted to the banks, whereas such
balances are included in the books of account.
ii) Cash credit facility taken from Kotak bank of Rs ?1,000.00 millions (including ?800.00 millions as sub-limit of CC). It
is primarly secured against hypothecation of all current assets of the company and is collaterally secured against
hypothecation of immovable property having postal address Shop no 1 to 7, FF, and Shop No 1 to 7, U, GF, Croma, Shreeji,
Opp. ICICI Bank, Indira Marg, Jamnagar- 361001 which is in the name of Krishnaraj Buildcon Private Limited. There is
personal guarantee of Mr. Jitendra Haridas Lal(Joint Managing Director) and Mr. Ashokkumar Haridas Lal(Chairman &
Managing Director).
iii) Term Loan from HDFC Bank Limited
Secured term loan of ?20.95 million sanctioned on 13th November 2025 for financing 2 Tata Hitachi Machines, comprising
a loan of ?10.47 million per machine, carrying interest at a fixed rate of 8.78% p.a. The loan is repayable in 11 equal
monthly instalments, commencing from 10th December 2025 and ending on 10th October 2026, and is secured by way
of hypothecation of the financed machines.
iv) Term Loan from HDFC Bank Limited
Secured term loan of ?20.95 million sanctioned on 24th November 2025 for financing 2 Tata Hitachi Machines, comprising
a loan of ?10.47 million per machine, carrying interest at a fixed rate of 8.78% p.a. The loan is repayable in 11 equal
monthly instalments, commencing from 20th December 2025 and ending on 20th October 2026, and is secured by way
of hypothecation of the financed machines.
v) Term Loan from HDFC Bank Limited
Secured term loan of ?10.47 million sanctioned on 01st December 2025 for financing 1 Tata Hitachi Machine, carrying
interest at a fixed rate of 8.78% p.a. The loan is repayable in 11 equal monthly instalments, commencing from 05th
January 2026 and ending on 05th November 2026, and is secured by way of hypothecation of the financed machine.
(vi) Term Loan from HDFC Bank Limited
Secured term loan of ?25.93 million sanctioned for financing 1 SANY Machine, sanctioned on 24 September 2025
carrying interest at a fixed rate of 8.76% p.a. The loan is repayable in 11 equal monthly instalments, commencing from
20 October 2025 and ending on 20 August 2026, and is secured by way of hypothecation of the financed machine.
(vii) Loan from Related Parties and others represent interest bearing loans received by the Company, which has been
obtained for business purposes and repayable on demand with rate of interest ranging from 6.30% to 12%.
General Description of Defined Contribution Plans
Contributions are made to provident fund (including Seamen's Provident Fund), Labour Welfare Fund and Employees'
State Insurance in India for the employees of the Company in accordance with the applicable regulations. The Company's
contributions are made to registered funds administered by the Government of India or other applicable authorities.
The Company's obligation is limited to the amount of contributions required to be made to the respective funds, and
the Company has no further contractual or constructive obligation in respect of such plans.
In respect of the crew employed on board on the Company's vessels, contributions towards Provident Fund are made
to the Seamen's Provident Fund in accordance with the National Maritime Board Agreement, which is binding on the
Company.
B Defined Benefit Plans - As per actuarial valuation
Gratuity:
The Company has a defined benefit gratuity plan. The amount of gratuity payable on retirement/termination is
determined in accordance with the applicable labour law regulations. These benefits are unfunded.
The present value of obligation is determined based on actuarial valuation using the projected unit credit method,
which recognise each period of service as giving rise to additional employee benefit entitlement and measures each
unit separately to build up the final obligation.
The principal actuarial assumptions used in determining gratuity obligation for the Company's plans are shown
below:
Discount rate: The discount rate is based on the prevailing market yields of Indian government securities as at the
balance sheet date for the estimated term of the obligations.
Salary escalation rate: The estimates of future salary increases considered take into account inflation, seniority,
promotion and other relevant factors.
Attrition rate: Represents the Company's best estimate of employee turnover in future (other than on account of
retirement, death or disablement) determined considering various factors such as nature of business, retention policy,
industry factors, past experience, etc
i) The Government has notified and brought into force substantial provisions of the Code on Social Security, 2020 ('Social
Security Code'); the Occupational Safety, Health and Working Conditions Code, 2020; the Industrial Relations Code, 2020
and the Code on Wages, 2019 (collectively, the "Labour Codes") on November 21, 2025, which consolidate, subsume,
amend and replace numerous existing Central labour legislations. The Government had approved the Code on Social
Security, 2020, which will impact the Company's employee benefit obligations.
The Ministry of Labour and Employment had earlier released draft rules for the Code on November 13, 2020.
Subsequently, on November 21,2025, the Government has notified and brought into force substantial provisions of the
Labour Codes. However, certain specific rules and corresponding State-level notifications are yet to be notified.
Based on the evaluation carried out by the management, and having regard to the provisions notified till date, the
company has assessed the implications of the Labour Codes in accordance with Ind AS 19 - Employee Benefits and the
FAQs on key accounting implications arising from the New Labour Codes issued by the Institute of Chartered Accountants
of India ('ICAI'). Accordingly, the company has concluded that the implementation of the notified provisions of the
Labour Codes may not have any material impact on its employee benefit obligations as at and for the year ended March
31,2026. The company is further in the process of evaluating the impact of these Labour Codes changes.
36 SEGMENT REPORTING
Identification of Reportable Segments:
Segments are identified in line with Indian Accounting Standard (Ind AS) 108 "Operating Segments", taking into consideration
the internal organisation and management structure as well as the differential risk and returns of each of the segments. The
Company's chief operating decision maker (CODM) has identified one business segment viz. Shipping & Logistics Services.
During the year, the Company has also undertaken transactions relating to purchase and sale of engines. Though such activity
is not in the nature of the Company's regular business operations, the same has been disclosed separately under segment
information considering the distinct nature of the activity and materiality of the transactions during the year.
Operations of the Company are managed from different locations each of these locations are aggregated based on exchange
control regulations; and the underlying currency risk. Accordingly, the following have been identified as operating and
reportable segments: (a) "Within India", and (b) "Outside India" In presenting geographic information, segment revenue has
been based on the location of the customer and segment assets are based on geographical location of assets.
The Company is a financial partner in its joint venture entity, M/s Shreeji Nuravi Chuperbhita Simlong Mines Private Limited
("JV"). The financial obligations of the JV shall be endeavored to be fulfilled by the Company in case the same are not met by
the JV, pursuant to the contractual arrangements governing the joint venture.
As part of the contractual requirements of the joint venture, each of the joint venture partners, including the Company, has
provided an additional performance bank guarantee of '47.82 million in respect of the obligations of the JV.
Further, the JV has provided a performance guarantee, which is backed by lien on fixed deposits of the Company amounting
to '926.6 million.
#The company Shreeji Tisha Martime Private Limited a subsidiary of Shreeji Shipping Global Limited was incorporated on 25.03.2026. The Company
shall remit the investment amount upon completion of the requisite banking formalities by the subsidiary company
*The amount includes interest demand under section 220(2) of the Income-tax Act, 1961; however, it does not include any interest charged on such
interest demand.
***The Company was in the process of finalizing long term vessel charter-cum-sale agreements in August 2025 in respect of five vessels. During
the process differences arose with the potential counterparty. Legal disputes have arisen in relation to the said prospective agreements, and
an admiralty suit has been filed by the potential counterparty before the Hon'ble Gujarat High Court claiming damages for breach, including
alleged loss of profits. The original claim as filed amounts to '1,182.09 million. The plaintiff has subsequently sought to revise the claim to
'6,289.27 million. However the claim including revision thereof is sub-judice and no adjudication on merits or quantum has taken place as at
the reporting date. Based on legal advice and management assessment, no provision has been recognised, and the matter has been disclosed
as a contingent liability. By an order dated 24th December 2025, the Hon'ble Gujarat High Court has ordered arrest of vessels in accordance with
the provisions of the Admiralty Act to secure the claim of the potential counterparty. The Company has furnished security in the form of bank
guarantees amounting to '471.55 million for release of two of the five vessels and have initiated proceedings for reduction in the requirement in
value of security and vacation of the order of arrest of remaining three vessels.
ADoes not include corporate guarantees given to related parties that meet the definition of financial guarantee contracts and are recognised in
accordance with Ind AS 109, Financial Instruments.
It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective
proceedings as it is determinable only on receipt of judgements/decisions pending with various forums/authorities
Nature of CSR Activities
The CSR activities were undertaken through Kedar Lal (Kedar Jitendra Lal) Foundation and Shree Haridas Jivandas
Charitable Trust. The principal areas of CSR activities undertaken through these trusts are as follows:
Healthcare: Promoting healthcare initiatives and supporting programmes intended to improve the health and well-being of
communities in and around the areas of the Company's operations, including medical camps and blood donation drives
Environment Sustainability: Undertaking plantation drives and other environmental conservation initiatives aimed at
promoting ecological balance, increasing green cover, and creating environmental awareness.
Sports Promotion: Organising sports activities and events to encourage physical fitness, promote sportsmanship, and
support the holistic development of children and youth in the communities surrounding the Company's areas of operation.
*The Company was incorporated on 11 April2024 pursuant to conversion from a partnership firm. Since the previous year was the first financial year
of the incorporation of the Company, the provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility (CSR)
were not applicable for the year ended 31 March 2025.
43 FAIR VALUE MEASUREMENT HIERARCHY
All financial assets and liabilities are categorised under a Amortised Cost / Cost, hence there are no fair value adjustments and
therefore hierarchy table not applicable.
44 FINANCIAL RISK MANAGEMENT
The Company has exposure to the following risks arising from financial instruments:
- Credit risk;
- Liquidity risk; and
- Market risk
i) Credit risk:
Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk primarily from trade receivables arising from
services rendered, loans, bank balances and other financial assets.
As the Company does not hold any collateral, the maximum exposure to credit risk for each class of financial instruments
is the carrying amount of that class of financial instruments presented on the statement of financial position.
Trade receivables
The Company's exposure to credit risk is primarily influenced by the individual characteristics of each customer,
including the customer's credit profile, geographical location and the economic environment in which the customer
operates. Trade receivables comprise amounts due from a large number of customers thereby limiting concentration of
credit risk.
The Company manages customer credit risk through established policies, procedures and controls for credit risk
management. The creditworthiness of customers is assessed based on, inter alia, their credit profile and individual credit
limits determined in accordance with the Company's credit risk management policy. Outstanding trade receivables are
regularly monitored.
For details of expected credit loss allowance in respect of trade receivables based on their ageing, refer to Note No. 9.
Cash and Cash Equivalents
Credit risk from balances with banks is managed by the Company's Finance department team in accordance with the
Company's policy. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through
counter party's potential failure to make payments. Credit limits of all authorities are reviewed by the management on
regular basis. All balances with banks is subject to low credit risk due to good credit ratings assigned to the Company.
The Company's maximum exposure to credit risk for the Cash & Cash Equivalents components of the balance sheet at
March 31,2026 and March 31,2025 is the carrying amounts as illustrated in the Balance Sheet.
Other Financial Assets
Other financial assets mainly comprises of investments, security deposits, loans to employees & other receivables. Credit
risk arising from these financial asset is limited.
Financial guarantee contracts
The Company has issued corporate guarantees on behalf of certain related parties in respect of their financial obligations.
Such guarantees expose the Company to credit risk arising from the possibility that the guaranteed entity may fail to
meet its contractual obligations and the Company may be required to make payments under the guarantee.
The Company manages such credit risk by monitoring the financial position, operating performance and repayment
obligations of the entities whose obligations are guaranteed. The Company also monitors the underlying borrowings
and other relevant information relating to the guaranteed entities to identify any indications of deterioration in their
credit quality.
The financial guarantee liability is recognised at the higher of the amount of loss allowance determined in accordance
with the expected credit loss requirements of Ind AS 109 and the amount initially recognised less, where appropriate,
the cumulative amount of income recognised in accordance with Ind AS 115.
I n determining the loss allowance, the Company considers the probability of default of the guaranteed entity, the
extent of exposure under the guarantee, the expected amount and timing of any payment that may be required under
the guarantee and the availability and realisable value of any collateral or other credit enhancements. The Company
reassesses the financial guarantee liability at each reporting date based on the latest available information and changes
in the credit risk of the guaranteed entities.
ii) Liquidity Risk
Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management is to
maintain sufficient liquidity and ensure that funds are available for use as per requirements. The company manages
liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously
monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
iii) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risks comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as
equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings,
deposits, and foreign currency receivables and payables.
Foreign Currency Risk Management
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument 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, expense or capital expenditure is denominated in
foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the
respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and
follows established risk management policies.
Sensitivity Analysis:-
A 5% strengthening/weakening of Indian Rupee against key currencies to which the Company is exposed, with all other
variables being held constant, would have led to approximately a gain/loss of '12.61 Millions (Previous Year : '14.26
Millions) in the Statement of Profit and Loss.
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 relates primarily
to the Company's borrowings with floating interest rates.
Sensitivity Analysis:-
The sensitivity analysis has been determined based on the exposure to interest rates for unhedged floating rate
liabilities. A 1% decrease in interest rates and other variables held constant, would have led to approximately gain of
'18.24 Millions (Previous Year : '24.31 Millions) in the Statement of Profit and Loss. A 1% increase in interest rate would
have led to an equal but opposite effect.
Commodity rate risk
The company's operational contracts incorporate a commodity escalation/de-escalation clause, which allows the
adjustment of contract pricing based on changes in commodity prices. This contractual mechanism helps recover
increases in commodity costs from customers or reduce costs when prices decline, thereby stabilizing revenue and
profit margins despite commodity price volatility.
A dedicated team within the company continuously monitors commodity price movements, particularly diesel rates, to
anticipate and respond to market trends effectively. This proactive approach enables timely pricing adjustments and
operational decisions.
45 CAPITAL MANAGEMENT
The Company's Capital Management objectives are:
- to ensure the Company's ability to continue as a going concern; and
- to provide an adequate return to shareholders through optimisation of debts and equity balance.
For the purpose of the Company's Capital Management, debt includes long term borrowings and short term borrowings and
equity includes issued equity share capital, share premium and all other equity.
47 During the year ended March 31, 2026, the Company has completed its Initial Public Offering (IPO) of 1,62,98,000 equity
shares with a face value of '10 each at an issue price of '252 per share. The Company's equity shares were listed on the
National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on August 26, 2025.
Unutilised IPO proceeds as at March 31,2026 are temporarily invested in deposits as permitted under applicable regulations
and disclosed in the Prospectus.
The amount allocated towards General Corporate Purpose ("GCP") i.e., '953.64 million, as disclosed in the Offer Document,
was duly utilised during F.Y. 2025-26. Subsequently, during the year, the Issue Expenses were reduced by '3.37 million due to
revision and, accordingly, the allocation towards GCP was also revised upwards to '957.01 million.
48 OTHER STATUTORY INFORMATION
i) The Company do not hold any benami property and no proceedings have been initiated or pending against the
Companyfor holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and
Rules made thereunder.
ii) The Company has not been declared as a 'Wilful Defaulter' by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the
Reserve Bank of India.
iii) The Company do not have any transactions with struck-off companies under Section 248 of the Companies Act, 2013 or
Section 560 of the Companies Act, 1956.
iv) The Company does not have any charge which is yet to be registered/satisfied with ROC beyond the statutory period
v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
vi) The Company have 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:
(a) 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
vii) The Company has not undertaken any transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961).
viii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
ix) The company has used the borrowings from banks and fianancial institutions for the specific purpose for which they
were obtained
x) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
xi) The Company has used accounting software systems for maintaining its books of account for the financial year ended
March 31,2025. These systems have a feature for recording an audit trail (edit log), and the same has operated throughout
the year for all relevant transactions recorded in the software system.
Further, no instance of tampering with the audit trail feature was noted, and the audit trail has been preserved by the
Company in accordance with statutory requirements for record retention, with respect to accounting software systems,
for the period for which the audit trail feature was operating.
(xii) Previous year figures have been regrouped/reclassified wherever necessary.
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