(j) Provisions and contingent liabilities
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, 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 a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows (when the effect of the time value of money is material).
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.
Contingent liabilities exist 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 will be required or the amount cannot be reliably estimated. Contingent
liabilities are appropriately disclosed unless the possibility of an outflow of resources embodying economic
benefits is remote.
(k) Employee benefits
(i) Short-term employee benefits:
Benefits accruing to employees in respect of wages, salaries, compensated absences, and expected cost
of bonus which are expected to be availed within twelve months immediately following the year-end are
reported as expenses during the year in which the employee performs the service that the benefit covers
and the liabilities are reported at the undiscounted amount of the benefits expected to be paid in exchange
for that service.
Where the availment or encashment is otherwise not expected to wholly occur within the next twelve
months, the liability on account of the benefit is actuarially determined using the projected unit credit
method at the present value of the estimated future cash flow expected to be made by the Company in
respect of services provided by employees up to the reporting date.
In respect of offshore employees benefit accruing in the nature of salaries are reported as expenses during
the year in which the employee' performs the related service. The Company does not provide benefits in
the nature of bonuses or compensated absences to offshore employees.
(ii) Retirement benefit costs and termination benefits
Defined contribution plans:
The eligible Onshore employees of the Company are entitled to receive benefits under the provident fund
scheme which is in substance, a defined contribution plan, in which both employees and the Company
make monthly contributions at a specified percentage of the covered employees' salary (currently 12%
of employees' salary). Payments to defined contribution retirement benefit plans are recognised as an
expense when employees have rendered service entitling them to the contributions.
As per the Company's agreement with the National Union Seafarers of India under Section 101 of the
Merchant Navy Act, 1958, the Company in respect of its offshore employees makes monthly contributions
towards provident fund and annuity at a specified percentage of the covered employees' salary (currently
12% of basic salary and 10% of basic salary respectively) under Seamens Provident Fund Act and towards
Gratuity at 12% of basic salary to Seafarers Welfare Fund Society. Payment to this fund is regarded as a
contribution to defined contribution retirement benefits plans as the Company's liability is restricted to
the contribution made to these funds and recognized as an expense when employees have rendered the
services entitling them to the contribution.
Defined benefit plans:
The Company's liabilities towards gratuity is determined using the projected unit credit method, by an
external actuary on annual basis.
Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if
applicable) and the return on plan assets (excluding net interest), is reflected immediately in the Balance
Sheet with a charge or credit recognised in other comprehensive income in the period in which they occur.
Re-measurement recognised in other comprehensive income is reflected immediately in other equity and
is not reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan
amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the
net defined benefit liability or asset.
Defined benefit costs are categorised as follows:
• service cost (including current service cost, past service cost, as well as gains and losses on curtailments
and settlements);
• net interest expense or income; and
• re-measurement
The Company presents the first two components of defined benefit costs in the Statement of Profit or
Loss in the line item 'Employee benefits expense'. Curtailment gains and losses are accounted for as
past service costs.
The defined benefit obligation recognised in the Balance Sheet represents the actual deficit or surplus in
the Company's defined benefit plans. Any surplus resulting from this calculation is limited to the present
value of any economic benefits available in the form of reductions in future contributions to the plans.
Liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the
offer of termination benefit and when the entity recognises any related restructuring costs.
Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave
and sick leave in the period the related services are rendered at the undiscounted amount of benefits
expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount
of the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of
the estimated future cash outflows expected to be made by the Company in respect of services provided
by the employees up to reporting date.
(l) Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number
of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the
profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any
attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity
shares considered for deriving basic earnings per share and the weighted average number of equity shares that
could have been issued upon conversion of all dilutive potential equity shares.
(m) Accounting and reporting of information for Operating Segments
Operating segments are those components of the business whose operating results are regularly reviewed by
the Chief Operating Decision Makers (CODM) in the Company to make decisions for performance assessment
and resource allocation. The Company's Chief Operating Decision Maker is its Managing Director. The reporting
of segment information is the same as provided to the management for the purpose of the performance
assessment and resource allocation to the segments.
(n) Inventories
Inventories are stated at the lower of cost and net realisable value. The net realisable value represents the
estimated selling price for inventories less all estimated costs necessary to make the sale.
The cost of inventories includes the cost of purchase and other costs incurred in bringing the inventories to their
present location and condition. The cost of inventories of fuel oil, lube oil and victualling stock is determined
on a first-in-first-out basis. Stores and spares of routine consumable nature are charged to the Statement of
Profit and Loss on receipt on board the vessel. Major Components, spare parts and stand-by equipment that
are expected to be used during more than one period are capitalised as property, plant and equipment in
accordance with paragraph 8 of Ind AS 16.
(o) Cash and cash equivalents
Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
(p) Current and Non-Current Classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
Equity shares are classified as equity.
When an asset meets any of the following criteria it is treated as current:
• Expected to be realised or intended to be sold or consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period
All other assets are classified as non-current.
When a liability meets any of the following criteria it is treated as current:
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• The Company does not have a right at the end of the reporting period to defer settlement of the liability
for at least twelve months after the reporting period
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and
cash equivalents. The Company has identified twelve months as its operating cycle.
(q) Financial instruments
Financial assets and financial liabilities are recognised when Company becomes a party to the contractual
provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value except
equity investments in associates and joint ventures and trade receivables that do not contain a significant
financing component are initially measured at transaction price. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or deducted from the fair value/transaction price of
the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs that are directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are
recognised immediately in the Statement of Profit and Loss.
(a) Non-derivative financial instruments:
i) Cash and cash equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk of change in value and having original maturities
of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents
consist of balances with banks that are unrestricted for withdrawal and usage.
ii) Financial assets carried at amortised cost
Financial assets are subsequently measured at amortised cost using the effective interest method
if these financial assets are held within a business model whose objective is to hold these assets
in order to collect contractual cash flows and the contractual terms of the financial asset give rise
to specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
iii) Financial assets at fair value through other comprehensive income
Financial assets are measured at fair value through other comprehensive income if these financial assets
are 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.
iv) Financial assets at fair value through profit or loss
Financial assets are measured at fair value through profit or loss unless it is measured at amortised
cost or at fair value through other comprehensive income on initial recognition. Transaction costs that
are directly attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in the Statement of Profit and Loss.
v) Investment in subsidiary, associate and joint venture
Investments in subsidiaries, associates and joint ventures are accounted at cost less accumulated
impairment losses, if any, in accordance with the cost option elected under paragraph 10 of Ind AS 27
“Separate Financial Statements”.
vi) Equity instruments
An equity instrument is a contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds
received, net of direct issue costs.
vii) Financial liabilities at amortized cost
Financial liabilities are measured at amortised cost using the effective interest method. For trade
and other payables maturing within one year from the Balance Sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.
(b) Impairment:
i) Financial assets:
The Company assesses at each balance sheet date whether a financial asset or a group of financial
assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance.
The Company recognises lifetime expected losses for trade receivables that do not constitute a
financing transaction. For all other financial assets, expected credit losses are measured at an amount
equal to 12 month expected credit losses or at an amount equal to lifetime expected losses, if the credit
risk on the financial asset has increased significantly since initial recognition.
The Company assessed the expected credit losses associated with its assets carried at amortised cost
and fair value through other comprehensive income based on the company's past history of recovery,
credit worthiness of the counterparty and existing market conditions.
ii) Non-financial assets:
Property, plant and equipment and intangible assets:
Property, plant and equipment and intangible assets with a finite life are evaluated for recoverability
wherever there is any indication that their carrying amounts may not be recoverable. If any such
indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value in
use) is determined on an individual asset basis unless the asset does not generate cash flows that are
largely independent of those from other assets. In such cases, the recoverable amount is determined
for the cash-generating unit (CGU) to which the asset belongs.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is
recognised in the Statement of Profit and Loss.
(c) De-recognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset
expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of
the asset to another party. On de-recognition of a financial asset in its entirety, the difference between
the asset's carrying amount and the sum of the consideration received and receivable is recognised in the
Statement of Profit and Loss.
A financial liability (or a part of a financial liability) is derecognised from the company's Balance Sheet when
the obligation specified in the contract is discharged or cancelled or expires. The difference between the
carrying amount of the financial liability derecognised and the consideration paid and payable is recognised
in the Statement of Profit and Loss
(d) Derivative Financial instruments
The Company enters into derivative financial instruments to manage its exposure to interest rate and
foreign exchange rate risk.
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and
are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or
loss is recognised in the Statement of Profit and Loss immediately unless the derivative is designated and
effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on
the nature of the hedged item and hedging relationship.
(e) Offsetting of financial instruments:
Financial assets and financial liabilities are offset, and the net amount is reported in the Balance Sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
(f) The fair value of financial instruments:
In determining the fair value of its financial instruments, the Company uses a variety of methods and
assumptions that are based on market conditions and risks existing at each reporting date. The methods
used to determine fair value include discounted cash flow analysis, available quoted market prices and
dealer quotes. All methods of assessing fair value result in a general approximation of value and such value
may never actually be realised.
(g) Hedge Accounting:
The Company designates certain hedging instruments, which include derivatives in respect of foreign
currency, as either cash flow hedge or fair value hedge. Hedges of foreign currency risk on firm commitments
are accounted for as cash flow hedges.
At the inception of the hedge relationship, the entity documents the relationship between the hedging
instrument and the hedged item, along with its risk management objectives and its strategy for undertaking
various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the
Company documents whether the hedging instrument is highly effective in offsetting changes in fair values
or cash flows of the hedged item attributable to the hedged risk.
(h) Fair value hedges
Changes in the fair value of the designated portion of derivatives that qualify as fair value hedges are
recognized in profit or loss immediately, together with any changes in the fair value of the hedged asset or
liability that are attributable to the hedged risk. The change in the fair value of the designated portion of
the hedging instrument and the change in the hedged item attributable to the hedged risk are recognized
in profit or loss in the line item relating to the hedged item.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised,
or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the
hedged item arising from the hedged risk is amortised to profit or loss from that date.
(i) Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash
flow hedges are recognized in other comprehensive income and accumulated under the heading of cash
flow hedging reserve. The gain or loss relating to the ineffective portion is recognised immediately in
profit or loss.
Amounts previously recognised in other comprehensive income and accumulated in equity relating to the
effective portion as described above are reclassified to profit or loss in the periods when the hedged
item affects profit or loss, in the same line as the recognised hedged item. However, when the hedged
forecast transaction results in the recognition of a non-financial asset or a non-financial liability, such gains
or losses are transferred from equity (but not as a reclassification adjustment) and included in the initial
measurement of the cost of the non-financial asset or non-financial liability.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised,
or when it no longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive
income and accumulated in equity at that time remains in equity and is recognised in profit or loss account
when the forecast transaction is ultimately recognised in profit or loss. When a forecast transaction is no
longer expected to occur, the gain or loss accumulated in equity is recognised immediately in profit or loss.
(r) Assets held for sale
The Company classifies non-current assets, including vessels, as held for sale when their carrying amount
will be recovered principally through a sale transaction rather than through continuing use.
A non-current asset is classified as held for sale when all of the following criteria are met:
• Management is committed to a formal plan to sell the asset;
• The asset is available for immediate sale in its present condition, subject only to terms that are
usual and customary;
• An active programme to locate a buyer has been initiated;
• The sale is highly probable, including:
• Expected completion of sale within 12 months from the date of classification;
• Asset is being actively marketed at a price reasonable in relation to its fair value;
• Actions required to complete the plan indicate it is unlikely that significant changes will be made or
that the plan will be withdrawn;
Assets classified as held for sale are measured at the lower of Carrying amount; and Fair value less costs
to sell. Any initial or subsequent write-down to fair value less costs to sell is recognised in the Statement of
Profit and Loss. Depreciation is not charged on such assets after classification as held for sale.
Such assets are presented separately as “Non-current assets held for sale” in the Balance Sheet.
If the criteria for classification as held for sale are no longer met, the asset is reclassified to property,
plant and equipment and measured at the lower of: carrying amount before classification adjusted for
depreciation; and recoverable amount at the date of decision not to sell.
(s) Events After the Reporting Period
Events occurring after the Balance Sheet date that provide evidence of conditions existing at the Balance
Sheet date (adjusting events) are reflected in the financial statements. Events occurring after the Balance
Sheet date that are indicative of conditions arising subsequent to the Balance Sheet date (non-adjusting
events) are disclosed, where material, in the notes to the financial statements.
4 A. Key sources of estimation uncertainty and critical accounting judgements:
The preparation of the Standalone Financial Statements in conformity with the Ind AS requires management
to make judgements, estimates and assumptions about the reported amounts of assets and liabilities and
income and expenses that are not readily apparent from other sources. Such judgments, estimates and
associated assumptions are evaluated based on historical experience and various other factors, including
estimation of the effects of uncertain future events, which are believed to be reasonable under the
circumstances. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going 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.
The following are the critical judgements and estimations that have been made by the management in the
process of applying the Company's accounting policies and that have the most significant effect on the
amount recognised in the Standalone Financial Statements and/or key sources of estimation uncertainty
that may have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year.
i. Revenue recognition:
The Company recognises unfinished voyage income and related expenses based on management's
estimates of the total number of days required to complete the voyage from the port of origin for
the voyage to the port of destination given its operational performance during the period. The actual
travel time per voyage may differ due to numerous reasons such as the size of the ship being loaded,
cargo type and quantity, ship speed as well as delays occasioned by weather or due congestion at
load or discharge ports etc., leading to differences in unfinished voyage income and expenses to be
recognised for voyages in-transit at the end of the period.
ii. Useful lives and residual values of property, plant and equipment:
As described in 3(c) above, the management reviews the useful lives of property, plant and equipment
at least once a year. Such lives for the fleet are dependent upon an assessment of both the technical
lives of the assets and also their likely economic lives based on various internal and external factors
including relative efficiency and operating costs, historical planned and scheduled maintenance, the
operating condition of the vessel etc. Accordingly, depreciable lives are reviewed annually using the
best information available to the Management.
Residual values for each vessel in the fleet are estimated based on the current steel scrap rate (adjusted
for related cost of disposal) applied to the light weight of each vessel at the end of each financial year.
Depending on the market conditions, if the residual value of a vessel is higher than its net book value.
Company suspends depreciation until such time as the residual value falls below the net book value of
the vessel. The residual value of other property, plant and equipment is considered at 5% unless based
on technical review, actual residual value post technical / economic lives are significantly different.
It is possible that the estimates made based on existing experience are different to the actual outcomes
within the following financial periods and could cause a material adjustment to the carrying amount or
depreciation charge on property, plant and equipment.
iii. Contingencies:
In the normal course of business, contingent liabilities may arise from litigation and other claims
against the Company. Potential liabilities that are possible but not probable of crystallising or are very
difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in note 34
to the Standalone Financial Statements but are not recognized in books. The management decides
whether the matters need to be classified as 'remote,' 'possible' or 'probable' based on expert advice,
past judgements, terms of the contract etc. The Company's assessment of exposure to contingencies
could change as new developments occur or more information becomes available. The outcome of
the contingencies could vary significantly and could materially impact the Company's results and
financial position.
iv. Expected credit losses:
The Company assesses its expected credit losses at each reporting date. Allowances are applied to
receivables where events or changes in circumstances indicate that the carrying amounts may not
be recoverable. Key assumptions applied are experience (including comparisons of the relative age
of accounts and consideration of actual write-off history), customer creditworthiness, changes in
customer payment terms, the estimated debt recovery rates and future market conditions that could
affect recovery. The actual level of debt collected may differ from the estimated levels of recovery.
v. Defined benefit plans:
The cost of a defined benefit plan and other post-employment benefits and the present value of such
obligations are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual development in the future. These include the determination
of the discount rate, future salary escalations and mortality rates etc. Due to the complexities involved
in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each financial year end.
vi. Fair value measurements
When the fair values of financial assets or financial liabilities recorded or disclosed in the financial
statements cannot be measured based on quoted prices in active markets, their fair value is measured
using valuation techniques including the discounted cash flow model. The inputs to these models are
taken from observable markets where possible, but where this is not feasible, a degree of judgment
is required in establishing fair values. Judgements include consideration of inputs such as liquidity
risk, credit risk and volatility.
vii. Preparation of financials statements on going concern basis
Company prepares financial statements on a Going Concern assuming the cash flows generation
from the continuation of operations including recovery against the insurance receivables, outflow for
capital expenditure and the repayment obligations of debt and interest for the next twelve months.
In calculating the cash flow generation from the business, certain assumptions are required to be
made in respect of highly uncertain matters, including management's expectations of earnings,
interest cost and capex outflow to reflect the risks involved.
4 B. Recent Accounting and Other Pronouncements:
(i) New and amended standards adopted by the Company:
The Ministry of Corporate Affairs (“MCA”) notified the Companies (Indian Accounting Standards)
Amendment Rules, 2025 and the Companies (Indian Accounting Standards) Second Amendment
Rules, 2025 introducing amendments to Ind AS 21, Ind AS 7, Ind AS 107, Ind AS 12, Ind AS 1, Ind
AS 10 and certain other standards, applicable to the Company with effect from 1st April, 2025. The
key changes include guidance on foreign currency exchangeability (Ind AS 21), new disclosure
requirements for supplier finance arrangements (Ind AS 7 / Ind AS 107), an exception and disclosure
requirements relating to OECD Pillar Two income taxes (Ind AS 12), and clarifications on classification
of liabilities subject to covenants (Ind AS 1 / Ind AS 10, certain provisions of which are effective from
1st April, 2026). The Company has reviewed these amendments and determined that they do not
have any material impact on its Standalone Financial Statements.
(ii) New Standards/Amendments notified but not yet effective:
Certain provisions of the amendments to Ind AS 1 and Ind AS 10 relating to classification of
liabilities subject to covenants are mandatory only for annual reporting periods beginning
on or after 1st April 2026. The Company does not expect these to have a material impact
on its Standalone Financial Statements.
Footnotes:
(a) Capital redemption reserve: The Companies Act provides that companies redeeming preference shares at face value or nominal value is required
to transfer an equivalent amount into capital redemption reserve. This reserve can be used to issue fully paid-up bonus shares to the shareholders
of the Company.
(b) Securities premium reserve: The amount received in excess of face value of equity shares is recognised in securities premium reserve. This is not
available for distribution of dividend but can be utilised for issuing bonus shares.
(c) Tonnage tax reserve: The reserve is a statutory reserve as per requirements of section 115VT of the Income Tax Act, 1961 for the purpose of
complying with the conditions of tonnage tax scheme.
(d) Tonnage tax utilisation reserve: The tonnage tax utilised reserve represents the utilisation of tonnage tax reserve created as per requirements
of section 115VT of the Income Tax Act, 1961 for the purpose of purchase of vessel.
(e) General reserve: The Company created a general reserve in earlier years pursuant to the provisions of the Companies Act wherein certain
percentage of profits were required to be transferred to general reserve before declaring dividends. The provision of the Companies Act 2013,
do not mandate transfer of profits to general reserve. General reserve is a free reserve available for distribution subject to compliance with the
Companies.(Declaration and Payment of Dividend ) Rules, 2014.
(f) Retained earnings: Retained earnings comprise balances of accumulated (undistributed ) profit and loss at each year end.
(g) Cash flow hedging reserve: Cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair
value of designated hedging instruments entered into for cash flow hedges, which shall be reclassified to Statement of Profit and Loss only when
the hedged transaction affects the profit or loss.
Note 28(a): One of the Company's vessels, MV SSL Brahmaputra, experienced a fire onboard on January 1, 2024. The
Company has recognised the cost of repairs and the estimated loss adjustment expenses, including towing charges,
in the respective reporting periods. Based on management's assessment, duly supported by an initial survey report
from an independent expert, the Company recognised the corresponding insurance claim as exceptional items in
the Statement of Profit and Loss during the respective periods. Subsequent to the receipt of the final survey report
and claim settlement, the Company has accounted for an insurance claim recoverable amounting to ' 281 lakhs,
net of repair costs and estimated loss adjustment expenses. The related claim recovery has been recognised as
income. Further, the Company expects no liability towards potential cargo claims, as such liabilities are adequately
covered by insurance.
29.2. Defined benefit plans
a) Gratuity (funded)
The Company provides gratuity benefits to its employees as per its gratuity policy, which meets the minimum
requirements under Code on Social Security, 2020. Present value of gratuity obligation (funded) based on
actuarial valuation done by an independent Actuary using the Projected Unit Credit Method, which recognizes
each period of service as giving rise to an additional unit of employee benefit entitlement and measures each
unit separately to build up the final obligation.
The following table sets out the status of the defined benefit plan as required under Ind AS -19 - Employee Benefits
The amount included in the balance sheet arising from the entity's obligation in respect of gratuity
is as follows:
In assessing the Company's post retirement liabilities, the Company monitors mortality assumptions and uses
up-to date mortality tables, the base being the Indian assured lives mortality (2012-14) ultimate.
The Company expects to contribute ^ 10 Lakhs (for the year ended March 31, 2025: ^ 10 lakhs) to its gratuity plan
for the next year.
Expected return on plan assets is based on expectation of the average long term rate of return expected on
investments of the fund during the estimated term of the obligations after considering several applicable factors
such as the composition of plan assets, investment strategy, market scenario, etc.
The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.
The discount rate is based on the prevailing market yields of Government of India securities as at the balance
sheet date for the estimated term of the obligations.
Significant actuarial assumptions for the determination of the defined obligation are discount rate and
expected salary increase. The sensitivity analysis below have been determined based on reasonably possible
changes of the respective assumptions occurring at the end of the reporting period, while holding all other
assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.
In presenting the above sensitivity analysis, the present value of the defined benefit obligations has
been calculated using the projected unit credit method at the end of the reporting period, which is the
same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
On 21 November 2025, the Government of India notified four Labour Codes (Code on Wages, 2019; Industrial
Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions
Code, 2020), consolidating 29 existing labour laws. The Ministry of Labour & Employment subsequently issued
Central Rules and FAQs to facilitate assessment of the financial implications. In line with the guidance issued by
the Institute of Chartered Accountants of India, the Company has completed its assessment based on the best
information currently available and has recognised and disclosed the incremental impact of the Labour Codes
in the financial statements for the year ended 31 March 2026. Given its materiality, the incremental impact has
been included within “Employee Benefit Expenditure” in the Statement of Profit and Loss. The incremental
impact primarily comprises gratuity past service cost of ^ 26 lakhs, mainly due to changes in the definition of
wages. This approach is consistent with prevalent industry practice of recognising the one-time past service
cost immediately upon notification of the Labour Codes. Based on the Company's assessment as at 31 March
2026, no further material impact is expected; however, the Company will continue to monitor the notification/
finalisation of the State Rules and any further clarifications and will recognise any additional impact, if required.
b) Compensated absences (unfunded)
As per the Company's policy, accumulated leave may be availed by an employee during the period of his service
and may be encashed on separation (i.e. due to death, retirement, separation or resignation). Compensated
absences which are not expected to be encashed or availed within twelve months of the end of the period in
which the employee renders the related services are recognised as an actuarially determined liability at the
present value of the defined benefit obligation at the Balance Sheet date.
b) Non-current assets:
All non-current assets of the Company are registered in India.
c) Information about major customers
Revenue from operations include revenues of Rs 29,634 lakhs (for the year March 31, 2025: Rs 39,400 lakh) from
the single largest customer of the Company.
33. Financial instruments
33.1 Capital management
The Company's objective for capital management is to maximize shareholder value, safeguard business
continuity and maintain an optimal capital structure to reduce the cost of capital. The Company maintains its
financial framework to support the pursuit of value growth for shareholders, while ensuring a secure financial
base. In order to maintain or adjust the capital structure, the Company may return capital to shareholders, issue
new shares or sell assets to reduce debt.
The capital structure of the Company consists of total equity and debt. The Company is not subject to any
externally imposed capital requirements.
Footnotes:
(a) Discounted cash flow. Future cash flows are estimated based on forward interest rates (from observable
yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects
the credit risk on various counter parties
(b) Generally accepted pricing model based on discounted cash flow analysis with most significant input being
the discounting rate that reflects the credit risk of counter parties.
(c) The management considers that the carrying amounts of financial assets and financial liabilities recognised
in the financial statements, other than as detailed in table above, approximate their fair values.
The financial instruments are categorised into three levels based on the inputs used to arrive at fair value
measurements as described below:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly; and
Level 3: Inputs based on unobservable market data
The following table presents the changes in investment in unlisted equity shares (level 3 item)
While ensuring liquidity is sufficient to meet Company's operational requirements, the Company's financial
management committee also monitors and manages key financial risks relating to the operations of the
Company by analyzing exposures by degree and magnitude of risks. These risks include market risk (including
currency risk, interest rate risk and price risk), credit risk and liquidity risk.
33.6Market risk
Market risk is the risk or uncertainty arising from possible market price movements and their impact on the
future performance of a business. The major components of market risk are freight rate movements, commodity
price risk (fuel), foreign currency exchange risk and interest rate risk.
33.7Foreign currency risk management
The Company undertakes transactions denominated in different foreign currencies and consequently exposed
to exchange rate fluctuations. Exchange rate exposures are managed within approved policy parameters. The
carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at
the end of the reporting period are as follows:
The Company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss arises mainly
from USD denominated receivables and payables. As per management's assessment of reasonable possible changes
in the exchange rate of /- 5% between INR and following currencies, sensitivity of profit or loss only on outstanding
foreign currency denominated monetary items at the period end is presented below. A positive number below
indicates an increase in profits or equity where INR strengthens 5% against the relevant currency. For a 5% weakening
of INR against the relevant currency , there would be a comparable impact on profit or equity, and the balances
below would be negative.
In the management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk
because the exposure at the end of the reporting period does not reflect the exposure during the year.
Hedge Accounting
As part of its risk management strategy, the Company makes use of financial derivative instruments, including
cross currency interest rate swaps, natural hedging and foreign exchange forward contracts, for hedging the risk
embedded in some of its financial liabilities recognized on the balance sheet. The objective of hedge accounting
is to represent, in the Company's financial statements, the effect of the Company's use of financial instruments
to manage exposures arising from particular risks that could affect profit or loss.
For derivative contracts designated as hedge, the Company documents, at inception, the economic relationship
between the hedging instrument and the hedged item, the hedge ratio, the risk management objective for
undertaking the hedge and the methods used to assess the hedge effectiveness. The tenor of hedging instrument
may be less than or equal to the tenor of underlying hedged liability. Financial contracts designated as hedges
are accounted for in accordance with the requirements of Ind AS 109 depending upon the type of hedge. The
Company applies cash flow hedge accounting to hedge the variability in the future cash flows attributable to
interest rate risk on floating rate liabilities and liabilities subject to foreign exchange risk.
The Company has a policy on assessment, measurement and monitoring of hedge effectiveness which provides
a guideline for the evaluation of hedge effectiveness, treatment and monitoring of the hedge effective position
from an accounting and risk monitoring perspective. Hedge effectiveness is ascertained at the time of inception
of the hedge and periodically thereafter. The Company assesses hedge effectiveness both on prospective and
retrospective basis. The prospective hedge effectiveness test is a forward looking evaluation of whether or
not the changes in the cash flows of the hedging position are expected to be highly effective on offsetting
the changes in the cash flows of the hedged position over the term of the relationship. On the other hand, the
retrospective hedge effectiveness test is a backward-looking evaluation of whether the changes in the cash
flows of the hedging position have been highly effective in offsetting changes in the cash flows of the hedged
position since the date of designation of the hedge.
Hedge effectiveness is assessed through the application of critical terms match method. Any ineffectiveness
in a hedging relationship is accounted for in the statement of profit and loss. The Company determines the
existence of an economic relationship between the hedging instrument and hedged item based on the currency,
amount and timing of their respective cash flows. The Company assesses whether the derivative designated
in each hedging relationship is expected to be and has been effective in offsetting changes in cash flows of
the hedged item.
The Company, inter alia, takes into account the following criteria for constructing a hedge structure as part
of its hedging strategy:
a) The hedge is undertaken to reduce the variability in the profit & loss i.e. the profit or loss arising from the
hedge structure should be lesser than the profit & loss on the standalone underlying exposure. In case of cash
flow hedge for covering interest rate risk the hedge shall be only undertaken to convert floating cash flows
to fixed cash flows i.e. the underlying has to be a floating rate liability.
b) At any point in time the outstanding notional value of the derivative deal(s) undertaken for the purpose of
hedging shall not exceed the underlying portfolio notional. The hedge ratio therefore does not exceed 100%
at the time of establishing the hedging relationship.
c) At any point in time the maturity of each underlying forming a part of the cluster/portfolio hedged shall be
higher than the maturity of the derivative hedging instrument.
The Company is exposed to Interest risk if the fair value or future cash flows of its financial instruments will
fluctuate as a result of changes in market interest rates. Fair value interest rate risk is the risk of changes in fair
values of interest bearing instruments because of fluctuations in the interest rates. Cash flow interest rate risk is
the risk that the future cash flows of floating interest bearing instruments will fluctuate because of fluctuations
in the interest rates.
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. For the floating rate interest bearing liabilities which have been hedged and
converted into fixed rate interest bearing liabilities, the hedge is expected to be fully effective and hence there
is no interest rate risk.
Interest Rate Sensitivity - Floating Rate Instruments
TThe sensitivity of the statement of profit and loss is the effect of the assumed changes in interest rates on
the profit or loss for a year, based on the floating rate financial liabilities held as at each reporting date, after
considering the effect of hedging instruments.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company's
profit for the year ended March 31, 2026 would decrease/increase by Rs. 95 lakhs (for the year ended March
31,2025: Rs. 137 lakhs)
33.10 Other price risks
The Company is exposed to price risk arising from investments in mutual funds. Company's equity
investments are held for strategic rather than trading purpose.
The sensitivity analysis below have been determined based on the exposure to mutual fund price risk at the
end of the reporting period.
If the Net Asset Value of mutual fund scheme has been 5% higher / lower, profit for the year ended March
31, 2026 would increase / decrease by Rs. 51 lakhs (for the year ended March 31, 2025 : increase / decrease
by Rs. 80 lakhs ) as a results of the changes in the fair values of mutual fund investments.
33.11 Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. The Company has adopted a policy of dealing only with creditworthy counterparties
as a means of mitigating the risk of financial loss from defaults.
Credit risk arises from cash and cash equivalents, deposits with banks as well as customers including
receivables. Credit risk management considers available reasonable and supportive forward-looking
information including indicators like external credit rating (as far as available), macro-economic information
(such as regulatory changes, government directives, market interest rate).
Credit exposure is managed by counterparty limits for investment of surplus funds which is reviewed by
the Management. Investments in liquid plan/schemes are with reputed fund houses having high rating. For
banks, only high rated banks are considered for Placement of deposits.
Trade receivables consist of number of customers, spread across diverse industries and geographical areas.
Ongoing credit evaluation is performed on the financial condition of accounts receivable.
Of the trade receivables (net) of impairment balance as at March 31, 2026 : Rs 1213 lakhs (as at March 31,
2025: Rs. 834 lakhs), below table shown customer wise breakup.
33.12 Liquidity risk management
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.
33.13 Liquidity and interest rate tables
The following tables detail the Company's remaining contractual maturity for its non-derivative financial
liabilities with agreed repayment periods. The information included in the tables have been drawn up based
on the cash flows of financial liabilities based on the earliest date on which the Company can be required
to pay. The Company consistently generated sufficient cash flows from operations to meet its financial
obligations including lease liabilities as and when they fall due. The tables include principal cash flows.
(b) Management is generally unable to reasonably estimate a range of possible loss for proceedings or disputes
other than those included in the estimate above, including where parties are yet to raise claims on account
of damages to the cargo, and the Company's management does not believe, based on currently available
information, that the outcomes of the above matters will have a material adverse effect on the Company's
financial position, though the outcomes could be material to the Company's operating results for any particular
period, depending, in part, upon the operating results for such year. It is not practicable for the Company to
estimate the timings of cash flows, if any, in respect of the above.
35. Disclosure made in terms of schedule V of SEBI (Listing obligation and Disclosure Requirement ) 2015
The Company has not given any loan or advance in the nature of loan to subsidiary, associates or firm/companies
in which directors are interested in view of Regulation 34(3) of SEBI (Listing obligations and disclosure
requirement) Regulation, 2015.
36. i) The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and Medium Enterprises
Development Act, 2006” has been determined to the extent such parties have been identified on the basis
of information collected by the Management.
40 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 has not traded or invested in Crypto currency or Virtual Currency during the financial year.
iii) 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”
iv) 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.”
v) The Company does not have any 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.
vi) 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.
vii) The Company is not declared wilful defaulter by any bank or financials institution or lender during the year.
viii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
ix) The Company did not have any long-term contracts including derivative contracts (except as included in
the note no. 16 and 33.8) for which there were any material foreseeable losses.
x) For the year ended March 31, 2026, the company is not required to transfer any amount into the Investor
Education & Protection Fund.
xi) The Company do not have transactions with companies which are struck off for the financial year 2025-2026..
41 No dividend, whether final or interim, has been proposed or declared for the year ended March 31, 2026.
During the year, the Company declared, approved and paid the final dividend for the previous year amounting
to '329 lakhs, equivalent to ^1.50 per share.” remove earlier one & add this
42 One of the Company's vessels, 'SSL KAVERI', is presently stranded in a region affected by ongoing geopolitical
developments in the Middle East and is currently unable to sail out. The movement of the vessel remains
subject to prevailing conditions and other external factors beyond the Company's control. The Company is
in continuous coordination with the relevant authorities and is closely monitoring the situation.
43 One of the Company's vessels, 'SSL KRISHNA', was approved for sale by the Finance Committee, and a
memorandum of understanding was executed on March 10, 2026 for a sale consideration of US$ 11.90 million
(approximately Rs. 11,062 lakhs). Accordingly, its carrying amount (including carrying value of expenditure
incurred on dry dock activity) of Rs. 5,421 lakhs has been classified as 'held for sale' as at the balance sheet
date in accordance with the applicable Indian accounting standards. Subsequent to the balance sheet date,
the Company completed the sale of the vessel on April 8, 2026.
44 Subsequent Events
Pursuant to Ind AS 10 - Events after the Reporting Period, the following events have occurred after the
balance sheet date:
On April 13, 2026, the Company entered into a memorandum of understanding for the sale of its vessels,
'SSL GODAVARI', for a total consideration of US$ 19.6 million (approximately Rs. 18,302 lakhs). The sale has
not yet been completed.
On April 27, 2026, the Company entered into a memorandum of understanding for the sale of its vessels,
'SSL GUJARAT', for a total consideration of US$ 3.5 million (approximately Rs. 3,297 lakhs). The sale has not
yet been completed.
On May 5, 2026, the Company entered into a memorandum of understanding for the sale of its vessels, 'SSL
BHARAT', for a total consideration of US$ 4.8 million (approximately Rs. 4,574 lakhs). The sale has not yet
been completed.
On May 15, 2026, the Company entered into a memorandum of understanding for sale of its vessel 'SSL
MUMBAI' for a total consideration of US$ 3.5 million (approximately Rs. 3,374 lakhs). The sale has not yet
been completed.
These events are considered non-adjusting events and do not require any adjustment to the financial
statements as at and for the year ended March 31, 2026.
45 Maintenance of Books of accounts under Section 128 of the Companies Act, 2013
The Company has used software applications for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the respective software applications. Further the Company did not come across
any instance of the audit trail feature being tampered with. The audit trail has been preserved by the
Company as per the statutory requirements for record retention from the date it was enabled.”
46 Prior year figures have been reclassified / regrouped wherever necessary to conform to the current
year's classification
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