3.7 Provisions

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 the Company will be required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third
party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the
amount of the receivable can be measured reliably.

3.8 Financial asset

All regular way purchases or sales of financial assets are recognised and de-recognised on a trade date basis.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within
the time frame established by regulation or convention in the market place.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.

3.8.1 Financial assets at Fair Value Through Profit and Loss (FVTPL):

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or
losses arising on re-measurement recognised in profit and loss. The net gain or loss recognised in profit and loss
incorporates any dividend or interest earned on the financial asset and is included in the ’Other Income / Other
expenses' line item. Dividend on financial assets at FVTPL is recognised when the Company's right to receive
the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the
entity and the amount of dividend can be measured reliably.

3.8.2 Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets
measured at amortised cost, lease receivables, trade receivables, other contractual rights to receive cash or
other financial asset, and financial guarantees not designated as at FVTPL.

For trade receivables or any contractual rights to receive cash or another financial assets that results from
transactions that are within the scope of Ind AS 115 the Company always measures their allowances at an
amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivable, the Company
has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed
based on a provision matrix which takes into account historical credit loss experience and adjusted for forward¬
looking information.

3.8.3 Derecognition of financial assets

The Company de-recognises a financial asset when contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially ail the risks and rewards of ownership of the asset to
another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership
and continues to control the transferred asset, the Company recognises its retained interest in the asset and an
associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards
of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also
recognises a collateralised borrowing for the proceeds received

3.9 Financial liabilities:

Financial liabilities are subsequently measured at amortised cost or at FVTPL.

3.9.1 Financial liabilities at FVTPL

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement
recognised in profit and loss. The net gain or loss recognised in profit and loss is included in the Other Income /
Other expenses’ line item.

3.9.2 Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not held for trading and are not designated as at FVTPL are measured at amortised
cost.

3.9.3 Derecognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company's obligations are discharged,
cancelled or have expired.

3.10 Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, which are described in note 3, the Management of the
Company is required to make judgements, estimates and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based
on historical experience and other factors that are considered to be relevant. Actual results may differ from these
estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and future periods.

4 Recent pronouncements

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. For the year ended March 31,2025,
MCA has notified IndAS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale
and leaseback transactions, applicable to the Company w.e.f. April 1,2024. The Company has reviewed the new
pronouncements and based on its evaluation has determined that it does not have any significant impact in its
financial statements.

Provision Matrix

Trade receivables - the Company’s exposure to credit risk is influenced mainly by the individual characteristics of
each customer. However, management also considers the factors that may influence the credit risk of its customer
base, including the default risk of the industry and place in which customers operate.

Based on a management review, the Company is making efforts to recover dues which are outstanding for more
than 360 days. Management believes that the unimpaired amounts which are due for more than 360 days are still
collectable. They are in the process of pursuing the same

18A Defined contribution plans

The Company makes contribution towards provident fund to a defined contribution benefit plan for qualifying
employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the
contribution plan to fund the benefits. The provident fund plan is operated by the Government administrated
Employee Provident Fund Organisation. Eligible employees receive the benefits from the said Provident Fund.
Both the employees and the Company make monthly contributions to the Provident Fund plan equal to specific
percentage of the covered employee’s salary The Company has no obligations other than this to make the
specified contribution.

18B (A) Defined benefit plans

The Company earmarks liability towards Gratuity and provides for payment under Group Gratuity Scheme
administered by the Life Insurance Corporation of India (LIC).

(a) Characteristics of defined benefit plan

The Company has a defined benefit gratuity plan in India (funded). The company’s defined benefit
gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately
administered fund The fund is managed by a trust which is governed by the Board of Trustees. The Board
of Trustees are responsible for the administration of the plan assets and for the definition of the investment
strategy.

(b) Risks associated with defined benefit plan

Gratuity is a defined benefit plan and company is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G. Sec. Rate will increase the present
value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to
market value of the assets liability requiring higher provision. A fall in the discount rate generally increases
the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary of the members more than assumed level will
increase the plan's liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate
which is determined by reference to market yields at the end of the reporting period on government bonds.
If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has
a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is
invested in lines of Rule 101 of Income Tax Rules, 1962. this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age
only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance
company and a default will wipe out all the assets. Although probability of this is very less as insurance
companies have to follow regulatory guidelines.

(c) Characteristics of defined benefit plans

The Company has the benefit scheme in line with Payment of Gratuity Act, 1972 for those employees who
are getting benefit as per Payment of Gratuity Act, 1972. Change in liability (if any) due to this scheme
change is recognised as past service cost.

(d) A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is
done as guided by rule 103 of Income Tax Rules, 1962.

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing
the returns to stakeholders. The company does not have any borrowings from Banks, Financial Institutions etc

26B Financial instruments

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis
on which income & expenses are recognised, in respect of each class of financial asset, financial liability and
equity instrument are as disclosed in note nos. 1 to 4 to financial statements

26C Financial and liquidity risk management objectives

i) The average payment terms of creditors (trade payables) is 45 days to 90 days. Other financial liabilities
are payable within one year. There are instances of delays.

ii) Trade receivables are unsecured in nature which are receviable in 30 days to 360 days. However there are
instances of delays in this timeline also

iii) In case of unsecured receivables the company has a credit policy where the provision for debts outstanding
is made based on provision matrix to compute the expected credit loss allowance taking into account
historical experience of customers and the credit limit as determined by the management.

The company has credit policy for its trade receivables. Ongoing credit evaluation is performed on the financial
condition of accounts receivable

26E The Company has investment in quoted and unquoted shares:

Quoted shares - The company has carried out fair value determination based on closing market rate and
recognised the fair value through OCI,

Unquoted shares - as the entity in which the Company has invested has a negative net worth, the investment has
been impaired on the date of transition.

27 i) The income tax assets (Net) under non current assets represents the advance taxes paid for past years

net of provisions.

ii) The income tax liabilities (Net) under current liabilities represents the income tax liabilities for current and
past years net of advance taxes paid.

28 The activity of the company, viz. providing repair services to ships, is considered as a single segment business.
Further, there is no activity outside India and hence there are no requirement for geographical segment reporting.

29 Other Statutory Information:

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has 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 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:

(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 no such 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 has complied with the number of layers prescribed under clause (87) of section 2 of the Act
read with the Companies (Restriction on number of Layers) Rules, 2017.

(ix) The Company has not been declared as a Wilful Defaulter by any bank or financial institution or government
or any government authority.

30 Contingent liabilites and contingent assets

Signaificant & Material Order by any Court
Suit No. 01

As a background, the Company had filed an application for setting aside the Ex parte Decree dated 15 06.2012
passed by the Hon'ble High Court of Madras in the matter of Integrated Finance Company Limited (IFCL). The
Hon’ble Court was pleased to set aside the Exparte Decree by an Order dated 04.04.2017 upon condition of
deposit of Rs 30 lakh with the Court, which the Company has complied with. The Company has thereafter filed its
written statement and also filed an application for dismissal of the suit filed by IFCL on the grounds of limitation
and also whether the Suit could be considered as a "Commercial Suit¹’.

Prior to deciding on the issue of limitation, the Hon’ble High Court of Madras declined to entertain the disputes
between the parties as a “Commercial Suit” as originally argued by IFCL and passed the order in favour of the
Company. Thereafter, IFCL preferred an appeal against the same order in the Appellate Bench of the Hon’ble
High Court of Madras where they lost once again. IFCL thereafter filed an appeal with the Hon’ble Supreme Court.
Upon hearing the matter, the Hon. Supreme Court decided that the matter was a commercial suit and therefore
the further hearing/s could be conducted at The High Court of Madras. Accordingly, the matter is now listed in the
High Court of Madras, waiting for a date of hearing. There has been no hearing during the current financial year
ended 31/03/2025.

Suit No. 02

The Company has also filed a suit for an amount of Rs 1.93/-cr together with interest @ 18% against Integrated
Finance Company Limited (IFCL) for loss of profit.

The order passed by the Appellate Bench of High Court of Madras in their judgement against the appeal filed by
IFCL (as stated above in the second para of Suit No. 01) further stated that since the matter mentioned in Suit No.
02 (the Suit filed by the Company) is interconnected with Suit No. 01 (the Suit filed by IFCL), the suits should by
heard jointly, as “civil suits'.

32 Previous year's figures have been regrouped / reclassified, to correspond with the current year's classification /
disclosure.

As per our report of even date attached For and on behalf of the Board

For D. Kothary & Co. A. A. Garware S. V. Atre

Chartered Accountants Chairman Executive Director

Firm Registration No. 105335W DIN: 00019816 DIN: 01893024

Deepak O. Narsaria

Partner V. S. Tandel P. P. Shedge

Membership No. 121190 Chief Financial Officer Company Secretary

UDIN : 25121190BMLLW85127 A29787

Mumbai, May 19, 2025 Mumbai, May 19, 2025