Note 1: Material Accounting Policy Information

The material accounting policy information applied in the preparation of these Standalone Financial Statements
are set out below. The accounting policies applied are consistent with those of the previous financial years.

1.1 Basis of Preparation

(a) Compliance with the Indian Accounting Standards

The Standalone Financial Statements of the Company have been prepared in accordance with the
Indian Accounting Standards (“Ind AS”) notified under Section133 of the Companies Act, 2013 (“the Act”)
read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) to
the extent applicable and current accounting practices prevailing within the Shipping Industry in India.
The policies set out below have been consistently applied during the years presented.

(b) Historical Cost Convention

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

• Certain financial assets and financial liabilities;

• Defined Benefit Plans - Plan assets

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

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

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level of input that is significant to the fair value measurement as a
whole) at the end of each reporting period.

(c) Current/Non-Current Classification:

The assets and liabilities reported in the balance sheet are classified as “current/non-current” as per the
Company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013.
Current assets are assets that are intended to be realized, sold or consumed during the normal
operating cycle of the Company or within the 12 months following the balance sheet date; current
liabilities are liabilities that are expected to be settled during the normal operating cycle of the Company
or within the 12 months following the balance sheet date.

(d) All material prior period errors are adjusted retrospectively in the first set of financial statements
approved for issue after their discovery by:

(i) Restating the comparative amounts for the prior period(s) presented in which the error occurred; or

(ii) If the error occurred before the earliest prior period presented, restating the opening balances of
assets, liabilities and equity for the earliest prior period presented.

(e) The Standalone Financial Statements are presented in ‘Indian Rupees' (inr), which is also the Company's
functional currency and all amounts are rounded to the nearest lakhs, unless otherwise stated.

(f) The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards)
Amendment Rules, 2025, which are effective for accounting periods commencing on or after 1 April 2025.
The Key amendments include amendments in following Ind AS:

Ind AS 21 - The Effects of Changes in Foreign Exchange Rates: Provides guidance on determining
exchange rates when a currency is not exchangeable and related disclosures.

Ind AS 1 Presentation of Financial Statements - The amendment to Ind AS 1 clarifies the principles for
classification of liabilities as current or non-current, particularly in respect of loan covenants and the
right to defer settlement.

Ind AS 7 - Cash Flow Statements - Ind AS 7 has been amended to disclose information about supplier
finance arrangement that enables users of financial statements to assess the effects of those
arrangements on the entity's liabilities and cash flows and on the entity's exposure to liquidity risk.

IND AS 12 - Income Tax - The amendment provides an exception to the requirements in this Standard, an
entity shall neither recognise nor disclose information about deferred tax assets and liabilities related to
Pillar Two income taxes.

The amendments to following Ind AS are consequential in nature, arising from changes in other
standards:

Ind AS 101 - First Time adoption

IND AS 107 - Financial Instruments- Disclosures

Ind AS 109- Financial Instruments

Ind AS 108 - Operating Segments

Ind AS 10- Events After The Reporting Period

Ind AS 115- Revenue From Contracts With Customers

The Company has evaluated the impact of amendments in the aforesaid Ind AS and concluded that these
amendments either do not apply to the Company or are not expected to have any material impact on the
financial statements. Accordingly, no adjustments have been made in the financial statements.

1.2 Foreign Currency Translation

(a) Functional and Presentational Currency

Items included in the Standalone Financial Statements of the Company are measured using the
currency of the primary economic environment in which the entity operates (‘the functional currency').
The Standalone Financial Statements are presented in ‘Indian Rupees' (INR), which is the Company's
functional and presentation currency.

(b) Transactions and Balances

All foreign currency transactions are recorded at the previous day's available RBI reference
rate/exchange rate published through FBIL (Financial Benchmarks India Private Limited). Since the RBI
reference rate published through FBIL is available for four major currencies only i.e. USD, GBP, EUR, YEN,
exchange rates of other currencies are taken from xe.com website.

The foreign currency balances in US Dollars, UK Pounds, Euro and Japanese YEN appearing in the books of
account at the period end are translated into Indian Rupees at the available RBI reference
rate/exchange rate published through FBIL at the period end. The foreign currency balances other than
US Dollars, UK Pounds, Euro and Japanese YEN appearing in the books of account at the period end are
translated into Indian Rupees at the rate available on xe.com website at the period end. Thereafter, the
monetary assets and monetary liabilities as well as the Long Term Loans are translated into rupees at
rate prevailing at the period end.

Exchange difference arising on repayment of liabilities and conversion of foreign currency closing
balances pertaining to long term loans for acquiring ships / containers / other depreciable assets and
asset under construction is recognised as follows:

a) In respect of long term loans outstanding as on 31.03.2016, exchange difference is adjusted in the
carrying cost of respective assets.

b) In respect of long term loans taken after 31.03.2016, the exchange difference is charged / credited to
Statement of Profit & Loss.

The exchange differences arising on translation of other monetary assets and liabilities are recognised
in the Statement of profit and loss.

Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at
the rates prevailing at the date when the fair value is determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.

1.3 Property, Plant and Equipment

Items of property, plant and equipment acquired or constructed are stated at historical cost net of
recoverable taxes, less accumulated depreciation and accumulated impairment of loss, if any. The cost of
tangible assets comprises of its purchase price, borrowing costs and adjustment arising for exchange rate
variations attributable to the assets, wherever applicable including any cost directly attributable till
completion of maiden voyage for bringing the asset to the condition of its intended use. In respect of second-

hand vessels, the cost of acquisition includes the purchase price and all expenditures directly attributable to
bringing the vessel to the condition necessary for it to be capable of operating in the manner intended by
management. Such costs are capitalised as part of the cost of the asset. Where the vessel is not in a condition
ready for its intended use at the date of acquisition, expenditures incurred subsequent to acquisition that are
necessary to bring the vessel to such condition are also capitalised.

Expenditure incurred on assets which are not ready for their intended use as on Balance Sheet date
comprising direct cost, related incidental expenses and attributable borrowing cost (net of revenues during
constructions) are disclosed under Capital Work-in-Progress.

Subsequent costs like expenditure on major maintenance refits or repairs including planned drydock are
included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Company and the cost of the
item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repair and
maintenance costs are recognised in Statement of Profit and Loss as incurred.

Transition to Ind AS:

On transition to Ind AS -

a) a certain items of fleet have been measured at fair value and that fair value is used as deemed cost as on
transition date.

b) All other assets which are not fair valued have been measured in accordance with Ind AS 16
retrospectively.

Depreciation:

Depreciation on all vessels is charged on “Straight Line Method” less residual value. In the case of Liner and
Bulk Carrier vessels, the company has adopted useful life of 25 years as mentioned in Schedule II to the
Companies Act, 2013. In case of Tankers & Offshore Vessels, the company has adopted a useful life of 25 years
based on the technical parameters including design life and the past record. In case of VLGC vessel, the
company has adopted a useful life of 30 years as mentioned in Schedule II to the Companies Act, 2013. Second
hand vessels are depreciated over their remaining useful lives as determined by technical evaluation not
exceeding 25 or 30 years from the date of original built.

Capitalised expenditures on dry-dock are depreciated until the next planned dry-docking and derecognised
on recognition of new dry dock asset.

Depreciation on other tangible assets is provided on the straight line basis, over the estimated useful lives of
assets as prescribed in the Schedule II of the Act, except in following cases:

1) Assets costing individually '5,000/- and below are fully depreciated in the year of acquisition.

2) Furnishing allowances given to Senior Executives are depreciated over a period of 3 years.

Depreciation on additions / deductions to PPE made during the year is provided on pro-rata basis from / up to
the date of such additions / deductions, as the case may be.

Estimated useful lives, residual values and depreciation methods are reviewed annually, taking into account
commercial and technological obsolescence as well as normal wear and tear and adjusted prospectively, if
appropriate.

Retirement and Disposal of Assets

a) Assets which have been retired from operations for eventual disposal are exhibited separately -as
Assets classified as held for sale.

b) Anticipated loss, if any, in the disposal of such assets is provided in the accounts for the year in which
these have been retired from active use. For the purpose of determining the loss, the sale price is
recognised, if contract for sale is concluded. In other cases, assessment of the realisable value is made
on the basis of the prevailing market conditions. Losses on such assets are provided for after taking into
account the expenses such as customs duty, sales tax / value added tax, GST etc. in connection with the
disposal, as well as estimated expenses in maintaining the asset, till its sale. Wherever the exact amount
under each item of expenses is not known, an assessment is done on the best estimate basis.

c) Profits on sale of assets are accounted for only upon completion of sale thereof.

1.4 Intangible Assets

Intangible assets acquired are stated at cost less accumulated amortization and accumulated impairment
losses, if any. The cost comprises of purchase price, borrowing costs and directly attributable costs for
bringing the asset to the condition of its intended use.

Transition to Ind AS:

On transition to Ind AS, the company has elected to continue with the carrying value of all of intangible assets
recognised as at April 1, 2015 measured as per the previous GAAP and use that carrying value as the deemed
cost of intangible assets.

Amortisation

Amortization is charged on a straight-line basis over the estimated useful lives. The useful lives of intangible
assets are either finite or indefinite. Finite-life intangible assets are amortised on a straight line basis over the
period of their estimated useful lives. An intangible asset having indefinite useful life is not amortised but is
tested for impairment annually. The estimated useful life and amortization method are reviewed at the end of
each annual reporting period, with the effect of any changes in the estimate being accounted for on a
prospective basis.

Intangible assets including software is amortised over the useful life not exceeding five years.

1.5 Borrowing Costs

Borrowing costs include interest, ancillary cost incurred in connection with the arrangement of borrowings,
interest on lease liability and exchange differences arising from foreign currency borrowings availed on or
after April 1, 2016, to the extent they are regarded as an adjustment to the interest cost as per Ind AS 23.
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are
capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of
Profit and Loss in the period in which they are incurred.

1.6 Impairment of Non-Financial Assets

Non-financial assets that are subject to depreciation or amortisation are reviewed for impairment as on 31st
March of every year or whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. The impairment loss, if any, is recognised in the Statement of Profit and Loss to the
extent, asset's carrying amount exceeds its recoverable amount. The Company estimates asset's

recoverable amount, which is higher of an asset's fair value less cost of disposal and its value in use. Value in use is
based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that
reflects current market assessment of the time value of money and risk specific to the assets.

1.7 Inventories

Inventories are valued at cost (Moving average method / Weighted Average method) or net realisable value,
whichever is lower, unless otherwise stated. Net realisable value is the estimated selling price in the ordinary
course of business.

Fuel oil purchases are initially booked as stock. The value of year-end stock is arrived at after charging
consumption on “moving average /weighted average” method.

Store / Spares including paints, etc. are charged to revenue as consumed when delivered to ships.

1.8 Non-Current Assets Held-For-Sale

Non-current assets are classified as assets held for sale when their carrying amount is to be recovered
principally through a sale transaction and a sale is considered highly probable. They are stated at the lower of
carrying amount and fair value less costs to sell. Property, plant and equipment classified as held for sale are
not depreciated.

1.9 Trade Receivable

Trade receivables are amounts due from customers for sale of goods or services performed in the ordinary
course of business. Trade receivables are recognized initially at fair value. They are subsequently measured
at amortised cost using the effective interest method, net of provision for impairment. The carrying value less
impairment provision of trade receivables, are assumed to be approximate to their fair values.

1.10 Cash and Cash Equivalents

Cash and cash equivalents include cash at bank and in hand, deposits with banks, other short-term highly
liquid investments with original maturities of three months or less.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above. Cash and Cash Equivalents consists of Balances with Banks which are restricted
for withdrawl and usage.

1.11 Investments and other Financial Assets

i. Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at
fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial
asset.

ii. Subsequent measurement

For the purposes of subsequent measurement, the company classifies its financial assets in the
following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or
through profit or loss), and

• those measured at amortised cost.

The classification depends on the Company's business model for managing the financial assets and the
contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in
profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the
business model in which the investment is held. For investments in equity instruments, this will depend on whether
the company has made an irrevocable election at the time of initial recognition to account for the equity
investment at fair value through other comprehensive income.

The company reclassifies debt instruments when and only when its business model for managing those
assets changes.

ii(a) Debt Instruments

Subsequent measurement of debt instruments depends on the Company's business model for
managing the asset and the cash flow characteristics of the asset. There are three measurement
categories into which the company classifies its debt instruments:

Financial Assets measured at Amortised Cost:

Financial assets such as trade receivables, security deposits and loans given are measured at the
amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using
effective interest (EIR) method.

Gain or loss on a debt instrument that is subsequently measured at amortised cost is recognised in profit
or loss when the asset is derecognised or impaired. Interest income from these financial assets is
included in finance income using the effective interest rate method.

Financial Assets measured at Fair Value through Other Comprehensive Income (FVTOCl):

A financial asset is classified as at the FVTOCI if both the following criteria are met:

• The asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets and

• The contractual terms of the financial assets give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

Movements in the carrying amount are taken through OCI, except for the recognition of impairment
gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit
and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in
OCI is reclassified from equity to profit or loss. Interest income from these financial assets is included in
other income using the effective interest rate method.

Financial Assets measured at Fair Value through Profit or Loss (FVTPL): Assets that do not meet the
criteria for amortised cost or FVTOCI are measured at fair value through profit or loss. A gain or loss on a
financial asset that is subsequently measured at fair value through profit or loss is recognised in profit or
loss in the period in which it arises. Interest income from these financial assets is included in other
income.

ii(b) Equity Instruments

a) Subsidiary and Joint Ventures

Investments in equity instruments of subsidiary and joint ventures are carried at cost less
impairment, if any.

b) Others

The company subsequently measures all equity instruments at fair value. Equity instruments which
are held for trading are classified as FVTPL. For all other equity instruments, the Company decides to
classify the same either as at FVTOCI or FVTPL. Changes in the fair value of financial assets at fair value
through profit or loss are recognised in the statement of profit and loss.

iii. Derecognition

A financial asset is derecognised only when:

i. the rights to receive cash flows from the asset have expired, or

ii. the company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows to one or more recipient

Where the Company has transferred an asset, the company evaluates whether it has transferred
substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is
derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of
the financial asset, the financial asset is not derecognised.

Where the Company has neither transferred a financial asset nor retains substantially all risks and
rewards of ownership of the financial asset, the financial asset is derecognised if the company has not
retained control of the financial asset. Where the company retains control of the financial asset, the
asset is continued to be recognised to the extent of continuing involvement in the financial asset.

iv. Impairment of Financial Assets

The company assesses on a forward looking basis the expected credit losses associated with its assets
carried at amortised cost and FVTOCI debt instruments. The impairment methodology applied depends
on whether there has been a significant increase in credit risk.

The impairment methodology for each class of financial assets stated above is as follows:

Debt instruments measured at amortised cost and FVTOCI: Debt instruments at amortised cost and
those at FVTOCI where there has been a significant increase in credit risk, lifetime expected credit loss
provision method is used and in all other cases, the impairment provision is determined as 12 months
expected credit losses.

Trade receivables from customers: The Company applies the simplified approach for providing
expected credit losses prescribed by Ind AS 109, which requires the use of the lifetime expected loss
provision for all trade receivables.

1.12 Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or
realise the asset and settle the liability simultaneously.

1.13 Contributed Equity

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.

1.14 Financial Liabilities

i. Classification as debt or equity

Debt and equity instruments issued by the company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability
and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities.

ii. Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of borrowings and payables, net of
directly attributable transaction costs.

The Company's financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts.

iii. Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Borrowings: Borrowings are subsequently carried at amortised cost; any difference between the proceeds
(net of transaction costs) and the redemption value is recognised in the statement of profit and loss over the
period of the borrowings using the effective interest method.

Trade and Other Payable: These amounts represent obligations to pay for goods or services that have been
acquired in the ordinary course of business from suppliers. They are recognized initially at fair value and
subsequently measured at amortised cost using the effective interest method.

iv. Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognised in the statement of profit or loss.

1.15 Income Tax

Provision for income tax liability is made as per special provisions relating to income of shipping companies
under the Income Tax Act, 1961 on the basis of deemed tonnage income of the Company. Provision for
income- tax on non- shipping income is made as per the normal provisions of the Income- Tax Act 1961. The
tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at
the reporting date.

Deferred income tax is provided in full, using the liability method, on temporary differences (other than those
which are covered in tonnage tax scheme; arising between the tax bases of assets and liabilities and their
carrying amounts in the Standalone Financial Statements. Deferred tax assets are recognized to the extent
that it is probable that future taxable profit will be available against which the deductible temporary
differences can be utilised.

Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period
when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised
in other comprehensive income or directly in equity.

1.16 Employee Benefits

a) Short-Term / Long Term Obligations

All employee benefits payable wholly within twelve months of rendering the service including performance
incentives and compensated absences are classified as 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 charged off to the Statement of Profit and Loss. The employee benefits which are not
expected to occur within twelve months are classified as long term benefits and are recognised as liability at
the net present value.

b) Defined Contribution Plan

Employee benefits under defined contribution plans comprising of post-retirement medical benefits (w.e.f
01.01.2007), provident fund and pension contribution are recognized based on the undiscounted amount of
obligations of the company to contribute to the plan. This contribution is recognised based on its
undiscounted amount and paid to a fund administered through a separate trust.

c) Defined Benefit Plan

Employee benefits under defined benefit plans comprising of gratuity, leave encashment and post¬
retirement medical benefits for employees retired before 01.01.2007 are recognized based on the present
value of defined benefit obligation, which is computed on the basis of actuarial valuation

The defined benefit obligation is calculated annually by independent actuaries using the projected unit
credit method.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding
amounts included in net interest on the net defined benefit liability), are recognised immediately in the
balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which
they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.