SIGNIFICANT ACCOUNTING POLICIES
1.1. Basis of Preparation of Financials Statement:
The Financial Statements are prepared in accordance with Indian Accounting Standards (hereinafter referred to as the
"Ind AS”) as notified under Section 133 of the Companies Act, 2013 ("Act”) read with Companies (Indian Accounting
Standards) Rules, 2015 ("Rules”), each as amended, and the other relevant provisions of the Act and Rules thereunder,
including the presentation and disclosure requirements of Division II of Schedule III to the Act and the guidelines issued
by the Securities and Exchange Board of India ('SEBI'), to the extent applicable. The accounting policies for the years
ended 31 March 2026 and 31 March 2025 are consistent.
The Ind AS financial statements have been prepared on accrual and going concern basis. The accounting policies are
applied consistently to all the periods and presented in the Ind AS financial statements.
The Company's presentation and functional currency is in the Indian Rupees (Rs.). All figures appearing the financial
statements are rounded off to the Rupee, except where otherwise indicated
These standalone financial statements are separate financial statements of the Company under Ind AS 27 "Separate
Financial Statements” ('Ind AS 27').
1.2. Historical cost Convention
The Ind AS financial statements have been prepared on a historical cost basis, except for the following:
1. Certain financial assets and liabilities including derivative instruments are measured at fair value.
2. Assets held for sale-measured at fair value less costs to sell
3. Defined benefit plans- plan assets measured at Fair value.
1.3. Uses of Estimates
The preparation of the Ind AS Financial Statements in conformity with the recognition and measurement principles of
Ind-AS Rules which requires the Management to make estimates and assumptions considered in the reported amounts
of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the Ind AS Financial Statements are prudent and
reasonable. Future results could differ due to these estimates and the differences between the actual results and the
estimates are recognised in the periods in which the results are known / materialised.
Revisions to accounting estimates are recognized prospectively in the Statement of Profit and Loss in the period in which
the estimates are revised and in any future periods affected.
Critical estimates and judgements
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and items which
are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally
assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with
information about the basis of calculation for each affected line item in the Ind AS financial statements
The areas involving critical estimates or judgement are:
Estimation of Defined benefit obligation - refer note 30 of notes to financial statement
Useful lives of property, plant and equipment- refer para 1.6 below of Notes to Accounts.
1.4. Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
All the assets and liabilities have been classified as current/non-current as per the Company's normal operating cycle and
other criteria set out in Division II to
Schedule III of the Companies Act, 2013.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash
equivalents. Based on the nature of activities of the Company and the normal time between acquisition of assets and
their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the
purpose of classification of its assets and liabilities as current and non-current.
1.5. Foreign Currencies
(i) Functional and presentation currency
The Company's Ind AS financial statements are presented in Indian Rupee (Rs.), which is also the Company's
functional and presentation currency.
(ii) Transactions and Balances
Transactions in foreign currencies are translated into functional currency using the exchange rate at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation of monetary assets and liabilities denominated in foreign currencies at the yearend exchange rates
are generally recognised in Profit or loss. They are deferred in Equity, if they relate to qualifying cash flow hedges. A
monetary item for which settlement is neither planned nor likely to occur in the foreseeable future is considered as
a part of the Entity's Net Investment in those foreign operations.
Foreign exchanges differences regarded as an adjustment to borrowing costs are presented in the statement of
Profit and loss, within finance cost. All other foreign exchange gains and losses are presented in the Statement of
Profit and loss on a net basis within other gains/ (losses).
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss
arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain
or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is
recognised in Other Comprehensive Income or profit or loss are also recognised in Other Comprehensive Income or
profit or loss, respectively).
1.6. Property, Plant and Equipment
Free hold land is carried at historical cost. All other items of Property, Plant and Equipment are stated at cost less
accumulated depreciation and impairment losses, if any. Historical cost includes expenditure that is directly attributable
to the acquisition of the item.
The cost of Property, Plant and equipment comprises its purchase price net of any trade discounts and rebates, any import
duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable
expenditure including brokerage and start-up costs on making the asset ready for its intended use, other incidental
expenses and interest on borrowings attributable to acquisition of qualifying assets up to the date the asset is ready for
its intended use.
Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction
projects if the recognition criteria are met.
When significant parts of plant and equipment are required to be replaced at intervals, Company depreciates them
separately based on their specific useful lives.
When major repairs are conducted, its cost is recognized in the carrying amount of the Plant and Equipment as a
replacement, if the recognition criteria are satisfied. All other repairs and maintenance costs are recognized in profit or
loss as incurred.
Advance paid towards the acquisition of property, plant and Equipment outstanding at each B/s Date is classified as
Capital advance under other non-current assets and non-current assets and the cost of assets not put to use before such
date are disclosed under Capital Work in Progress (CWIP)
Drydocks are considered as component of fleet with estimated useful lives different than the main component of fleet.
Cost relating to drydock which is mandatorily required to be carried out as per the Classification Rules and Regulations is
recognized in the carrying amount of ship and is amortised over 2.5 years.
Depreciation on Property, Plant and equipment is provided to the extent of depreciable amount on the Straight Line
Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Companies
Act, 2013, except in respect of Vessels, where useful life is considered as under based on technical evaluation:
An item of Property, Plant and Equipment and any significant part initially recognised is derecognised upon disposal or
when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the
Asset (calculated as the difference between the net disposal proceeds and the carrying amount of the Asset) is included
in the income statement when the asset is derecognised.
The residual values, useful lives and methods of depreciation of Property, Plant and Equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.
Assets costing less than ' 25,000/- are fully depreciated in the year of capitalization.
1.7. Impairment of non-financials assets
Non-financial assets other than inventories and non-current assets held for sale are reviewed at each Balance Sheet date
to determine whether there is any indication of impairment. If any such indication exists, or when annual impairment
testing for an asset is required, the Company estimates the asset's recoverable amount. The recoverable amount is higher
of Asset's or Cash Generating Units (CGU) fair value less costs of disposal and its value in use. Recoverable amount is
determined for an individual asset, unless the asset does not generate cash flows that are largely independent of those
from other assets or group of assets.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.
1.8. Investment Property
Since there is no change in the functional currency, the company has elected to continue with the carrying value for all
of its investment property as recognised in IND-AS.
Investment Property is property (land or a building- or a part of a building) held either to earn rental income or for capital
appreciation or for both, but not for sale in the ordinary course of business, use in production or supply of goods or
services or for administrative purposes nor it includes property held for sale in the ordinary course of business.
More specifically, investment property includes land held for long-term capital appreciation as well as land held for a
currently undetermined future use. Investment property also includes (a) building owned by the Company and leased
out under operating lease(s), (b) a vacant building that is being held to be leased out under an operating lease (or leases),
and/ or (c) property that is being constructed or developed for future use as investment property. In cases when property
is held partly for capital appreciation and/or rentals, and partly for the production of goods or services or administrative
purposes, the two parts are accounted for separately if they could be sold, or leased out under a finance lease, separately.
If two parts could not be sold (or leased out under a finance lease) separately, the property is accounted for as an
investment property only if an insignificant portion is held for use in the production or supply of goods or services
or for administrative purposes. Similarly, in cases where the Company provides ancillary services to the occupants of
its property, the property is accounted for as investment property if the services are an 'insignificant' portion of the
arrangement.
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition,
investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
The Company Office Premises was under CWIP during the previous year and the same was capitalized during the current
year. Therefore, depreciation has not been considered in the previous year. The Office premises is used for self-occupation
and not for investment purpose.
Investment properties are derecognised either when they have been disposed of or when they are permanently
withdrawn from use and no future economic benefit is expected from their disposal.
The difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in
the period of derecognition.
In determining the amount of consideration from the derecognition of investment properties, the Company considers
the effects of variable consideration, existence of a significant financing component, non cash consideration, and
consideration payable to the buyer (if any).
1.9. Investment in Subsidiaries
Investment in equity shares of subsidiaries are recorded at cost and reviewed for impairment at each reporting date.
1.10. Inventories
Bunker and Lubes on vessels are valued at lower of cost and Net Realisable Value ascertained on First in First out basis.
Stores / Spares/ fuel / lubricants issued /delivered to crafts are charged off to statement of Profit and Loss, as and when
consumed by respective crafts. However, spares consumed in Dry Dock are capitalised vide Policy on Property Plant
& Equipment.
Service works in Progress are valued at lower of cost and net realizable value.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
and the estimated costs necessary to make the sale.
1.11. Cash and Cash Equivalents
For the purpose of presentation in statement of cash flows, cash and cash equivalents includes cash in hand and at bank
in current and foreign currency accounts, deposit held at call with financial institution, other short term, highly liquid
investments with original maturities of within twelve months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value, and bank overdrafts having debit balances. Bank
Overdrafts with debit balance as closing figure are shown cash and cash equivalent in current assets in Balance sheet.
1.12. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing activities of the Company are segregated based on the available
information.
1.13. Taxes on Income
Tax expenses comprise both current and deferred tax
(a) Current Tax
Current income tax assets and liabilities are measured at the amount expected to be paid to or recovered from
the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date, where the Company operates and generates taxable income.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either
in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns
with respect to situations in which applicable tax regulations are subject to interpretation and considers whether
it is probable that a taxation authority will accept an uncertain tax treatment. The Company reflects the effect
of uncertainty for each uncertain tax treatment by using either most likely method or expected value method,
depending on which method predicts better resolution of the treatment.
Provision for Current tax, on operational income, is made, on the basis of deemed tonnage income of the company,
as per special provisions relating to shipping companies under the Income Tax Act,1961.
Provision for Current tax on non-operational income is made as per the provisions of the Income Tax Act 1961.
Current Tax items are recognised in co-relation to the underlying transaction either in the Statement of Profit and
Loss, other comprehensive income or directly in equity.
(b) Deferred Tax
Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences, and the carry forward of unused tax credits and
unused tax losses can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be
utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent
that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted
at the reporting date.
Deferred Tax items are recognised in co-relation to the underlying transaction either in the Statement of Profit and
Loss, other comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
(c) Minimum Alternate Tax (MAT)
Minimum Alternate Tax (MAT) is not applicable to the Company as the Company pays tax as per section 115 BAA of
income tax where MAT is not applicable to the company opting to pay the tax under section 115BAA of the Income
Tax Act 1961.
(d) Tonnage Tax
The Company's income from eligible shipping activities is taxed under the Tonnage Tax Scheme, wherever
applicable. Under this scheme, taxable income is calculated based on the net tonnage of qualifying vessels and
the number of days they are operated, instead of actual profits earned. The related tax expense and liability are
recognised in the Statement of Profit and Loss in accordance with the applicable tax laws.
1.14. Provisions and Contingencies
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material,
provisions are discounted using equivalent period government securities interest rate. Unwinding of the discount is
recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each balance sheet date and
are adjusted to reflect the current best estimate.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
Contingent liabilities are disclosed 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 to settle or a reliable estimate of the amount cannot be made. Information on
contingent liability is disclosed in the Notes to the Ind AS financial statements. Contingent assets are not recognised.
However, when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it
is recognised as an asset.
1.15. Earnings Per Share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary
items, if any) by the weighted average number of equities shares outstanding during the year. Diluted earnings per share
is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) 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 which could have been issued on the conversion of all dilutive
potential equity shares.
Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit
per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the
beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted
for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding
shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity
shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as
appropriate.
1.16. Leases
a) Finance Lease
Leases are classified as finance leases, if substantially all of the risks and rewards incidental to ownership of the leased
asset is transferred to the lessee.
b) Operating Lease
As a lessee
A lease is classified at the inception date as a finance lease or an operating lease.
A lease that transfers substantially all the risks and rewards incidental to ownership to company is classified as a
finance lease.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that
the company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the
estimated useful life of the asset and the lease term.
Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis
over the lease term.
As a lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are
classified as operating leases. Initial direct costs incurred in negotiating and arranging an operating lease are added
to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the period in which they are earned.
1.17. Revenue Recognition
Revenue from contracts with customers that meet the recognition criteria under paragraph 9 of Ind AS 115 is recognised,
when (or as) a performance obligation is satisfied by transferring a promised service to a customer, for the amount of the
transaction price that is allocated to that performance obligation based on internal assessment/survey
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value
of the consideration received or receivable, taking into account contractually defined terms of payment and excluding
taxes or duties collected on behalf of the government. The Company recognises revenue when the specific criteria have
been met for each of the Company's activities as described below:
a) Charter Hire Income
Income from Charter hire and demurrage earnings is recognized on accrual basis as per the terms of agreement.
b) Dredging Income
Income from Dredging hire and demurrage earnings is recognized on accrual basis as per the terms of agreement.
c) Ship-Building Contract
i) The Company transfers control of a goods or service over time and, therefore, satisfies a performance obligation
and recognises revenue over time, if one of the following criteria is met -
a) the customer simultaneously receives and consumes the benefits provided by the Company's performance
as the Company performs; or
b) the Company's performance creates or enhances an asset (for example, work in progress) that the
customer controls as the asset is created or enhanced; or
c) The Company's performance does not create an asset with an alternative use to the Company and the
Company has an enforceable right to payment for performance completed to date.
d) Ship Building Financial Assistance is recognised over a period of time in respect of contracts which are
eligible under SBFA policy when the management can reliably measure the probable receipt of the same.
The Company recognises revenue for a performance obligation satisfied over time only if the entity can reasonably
measure its progress towards complete satisfaction of the performance obligation.
Methods for Measuring Progress:
• Based on the nature of the goods, progress w.r.t Ship Construction is recognized over time using Input Method
i.e. by comparing the actual costs incurred to the total costs anticipated for the entire contract. These estimates
are revised periodically.
• For ship repair contracts having defined performance obligation, revenue is recognized over time using Input
Method i.e. by comparing the actual costs incurred to the total costs anticipated for the entire contract.
• For Ship repair contracts involving continuous maintenance support, revenue is recognised by using Output
Method to measure its progress based on time elapsed upto reporting date as the same is representative of
the satisfaction of performance obligation subject to entitlement of consideration in exchange of goods and/
or services.
ii) Revenue from supply of B&D Spares is recognised based on satisfaction of performance obligation at point in
time on proof of receipt of goods from Naval Stores.
iii) Revenue Recognition for Modification Jobs: In case of modification jobs, revenue against completed
Modification jobs is recognised on the basis of Work
Done Certificate issued by appropriate authority and for which Modification Cost for Approval is submitted to
the customer, duly recommended by onsite representative of customer.
e) Interest Income
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the
applicable effective interest rate.
f) Insurance Claims
Claims including insurance claims are accounted when there is a reasonable certainty of the realisation of the claim
amount.
g) Income from other services is accounted on accrual basis as per the terms of the relevant agreement.
1.18. Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured
at amortised cost. Any differences between the proceeds (net of transaction costs) and the redemption amount
is recognised in Profit or loss over the period of the borrowing using the effective interest method. Fees paid on the
establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some
or all of the facilities will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is
no evidence that it is probable that some or all of the facilities will be drawn down, the fee is capitalised as a prepayment
for liquidity services and amortised over the period of the facility to which it relates.
The borrowings are removed from the Balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of the financial liability that has been extinguished or
transferred to another party and the consideration paid including any noncash asset transferred or liabilities assumed, is
recognised in profit or loss as other gains/(losses).
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the
liability of at least 12 months after the reporting period. Where there is a breach of a material provision of a long term loan
arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand
on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period
and before the approval of the financial statement for issue, not to demand payment as a consequence of the breach.
1.19. Borrowing cost
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of
a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its
intended use for sale. Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of
the asset.
All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences
to the extent regarded as an adjustment to the borrowing costs.
1.20. Assets held for Sale
Non-current assets are classified as held for sale if their carrying amounts will be recovered through a sale transaction
rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset
is available for immediate sale in its present condition subject to only terms that are usual and customary for sale of such
assets.
Non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less cost to sell.
Property, plant and equipment classified as held for sale are not depreciated.
1.21. Fair Value Measurement
The Company measures certain financial instruments at fair value at each reporting date.
Certain accounting policies and disclosures require the measurement of fair values, for both financial and non- financial
assets and liabilities.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date in the principal or, in its absence, the most advantageous market to which
the Company has access at that date. The fair value of a liability also reflects its non-performance risk.
The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction price - i.e.,
the fair value of the consideration given or received. If the Company determines that the fair value on initial recognition
differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an
identical asset or liability nor based on a valuation technique that uses only data from observable markets, then the
financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial
recognition and the transaction price. Subsequently that difference is recognised in Statement of Profit and Loss on an
appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable
market data or the transaction is closed out.
1.22. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
a) Financial Assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
other comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow
characteristics and the Company's business model for managing them. With the exception of trade receivables that
do not contain a significant financing component or for which the Company has applied the practical expedient,
the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or
for which the Company has applied the practical expedient are measured at the transaction price determined under
Ind AS 115.
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. Purchases or
sales of financial assets that require delivery of assets within a time frame established by regulation or convention in
the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to
purchase or sell the asset.
Subsequent measurement
Subsequent measurement is determined with reference to the classification of the respective financial assets and
the contractual cash flow characteristics of the financial asset, the Company classifies financial assets as subsequently
measured at amortised cost, fair value through Other Comprehensive Income or fair value through profit and loss.
Debt instruments at amortised cost
Debt instruments such as trade and other 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 the effective
interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income
in the profit or loss. The losses arising from impairment are recognised in the profit or loss.
This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently
measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking
into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included in other income in the profit or loss. The losses arising from impairment are recognised in
the profit or loss. The Company's financial assets at amortised cost includes trade receivables and loans to related
parties included under other financial assets.
Debt instrument at FVTOCI
A 'debt instrument' is classified as at the FVTOCI if both of the following criteria are met:
> The objective of the business model is achieved both by collecting contractual cash flows and selling the
financial assets, and
> The asset's contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date
at fair value. For debt instruments, at fair value through OCI, interest income, foreign exchange revaluation and
impairment losses or reversals are recognised in the profit or loss and computed in the same manner as for financial
assets measured at amortised cost. The remaining fair value changes are recognised in OCI.
Upon derecognition, the cumulative fair value changes recognised in OCI is reclassified from the equity to profit or
loss.
Debt instrument at FVTPL
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.
Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in
the Statement of Profit and Loss. However currently the company does not have any financial instruments in this
category.
Equity investments
All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for
trading are classified as at FVTPL.
For all other equity instruments, the company decides to classify the same either as at FVTOCI or FVTPL The company
makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is
irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, all fair value changes on the instrument,
excluding dividends, are recognized in the Other Comprehensive Income. There is no recycling of the amounts from
Other Comprehensive Income to Statement Profit and Loss, even on sale of investment. However, the Company
may transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the
Profit or loss.
De- recognition
A financial asset is primarily derecognised when:
> The rights to receive cash flows from the asset have expired, or
> The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and
either (a) the company has transferred substantially all the risks and rewards of the asset, or (b) the company
has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset
On de-recognition, any gains or losses on all debt instruments (other than debt instruments measured at FVOCI)
and equity instruments (measured at FVPTL) are recognized in the Statement of Profit and Loss. Gains and losses in
respect of debt instruments measured at FVOCI and that are accumulated in are reclassified to profit or loss on de¬
recognition. Gains or losses on equity instruments measured at FVOCI that are recognized and accumulated in
Other Comprehensive Income are not reclassified to profit or loss on de-recognition
Impairment of financial assets
The company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the
following financial assets and credit risk exposure:
> Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities,
deposits, trade receivables and bank balance.
> Financial assets measured at fair value through other comprehensive income.
In case of other assets (listed as a) above), the company determines if there has been a significant increase in credit
risk of the financial asset since initial recognition.
b) Financial liabilities
Initial recognition and measurement
All financial liabilities are recognised initially at fair value and, in the case of loans and 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,
financial guarantee contracts and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at FVTPL
Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition
as at fair value through profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial
date of recognition, and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value
gains/losses attributable to changes in own credit risk are recognized in Other Comprehensive Income. These gains/
losses are not subsequently transferred to profit or loss. However, the company may transfer the cumulative gain or
loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss.
Financial liabilities at amortized cost
Financial liabilities classified and measured at amortized such as loans and borrowings are initially recognized at
fair value, net of transaction cost incurred. After initial recognition, financial liabilities are subsequently measured at
amortised cost using the Effective interest rate (EIR) method.
Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
De-recognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired.
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 de¬
recognition 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.
c) Financial guarantee obligation
The company's investments include the effect of notional income from financial guarantee obligations.
d) Derivative Financial Instruments
Initial recognition and subsequent measurement
The company uses derivative financial instruments such as forward currency contracts to hedge its foreign currency
risks.
Such derivative financial instrument is initially recognised at fair value on the date on which derivative contract is
entered into and is subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair
value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken through other comprehensive
income.
e) Foreign Currency Convertible bonds (FCCBs)
FCCBs are separated into liability and equity components based on the terms of the contract. On issuance of the
FCCBs, the fair value of the liability component is determined using a market rate for an equivalent non-convertible
instrument. This amount is classified as a financial liability measured at amortised cost (net of transaction costs)
until it is extinguished on conversion or redemption. The remainder of the proceeds is allocated to the conversion
option that is recognised and included in equity since conversion option meets Ind AS 32 criteria for fixed-to-fixed
classification. Transaction costs are apportioned between the liability and equity components of the FCCBS based
on the allocation of proceeds to the liability and equity components when the instruments are initially recognised.
However, during the year under review, no FCCBs were issued or outstanding.
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,
to realise the assets and settle the liabilities simultaneously.
1.23. Employee Benefits
a) Short-term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term
employee benefits. Benefits such as salaries, wages, performance incentives, etc. are recognised at actual amounts
due in the period in which the employee renders the related service.
b) Post-employment benefits
(i) Defined Contribution Plans
Payments made to defined contribution plans such as Provident Fund are charged as an expense as they fall
due.
(ii) Defined benefit schemes
Defined benefit scheme surpluses and deficits are measured at:
(i) The fair value of plan assets at the reporting date; less
(ii) Plan liabilities calculated using the projected unit credit method discounted to its present value using
yields available on government bonds that have maturity dates approximating to the terms of the
liabilities and are denominated in the same currency as the post-employment benefit obligations; less
(iii) The effect of minimum funding requirements agreed with scheme trustees.
Remeasurements of the net defined obligation are recognised directly within equity. The remeasurements
include:
(i) Actuarial gains and losses
(ii) Return on plan assets (interest exclusive)
(iii) Any asset ceiling effects (interest exclusive).
Service costs are recognised in profit or loss, and include current and past service costs as well as gains and
losses on curtailments.
Net interest expense (income) is recognised in profit or loss, and is calculated by applying the discount rate
used to measure the defined benefit obligation (asset) at the beginning of the annual period to the balance of
the net defined benefit obligation (asset), considering the effects of contributions and benefit payments during
the period.
Gains or losses arising from changes to scheme benefits or scheme curtailment are recognised immediately
in profit or loss. Settlements of defined benefit schemes are recognised in the period in which the settlement
occurs.
c) Other Long-term employee benefits
Other Long - term employee benefit viz. leave-encashment, gratuity is recognised as an expense in the other
comprehensive income as it accrues. The Company determines the liability using the Projected Unit Credit Method,
with actuarial valuation carried out as at the balance sheet date. The actuarial gains and losses in respect of such
benefit are charged to the other comprehensive income.
1.24. Property, Plant & Equipment and Intangible Asset
a) During the year, River Pearl 1 (Survey Boat) was purchased from Associate Company M/s KMEW Offshore Private
Limited for a consideration amount of Rs 1.35 crores.
b) During the year under review, the Company has purchased the River Pearl 18 (Trailing Suction Hopper Dredger)
from Knowledge Marine Co. W. L. L., Bahrain for Rs. 39.19 Crores.
c) During the year River Pearl 15 & 16 (Tug Boat), River Pearl 33 (Cutter Suction Dredger), River Pearl 34 & 35 (Survey
Boat), River Pearl 36 & 38 (Speed Patrol Boat), River Pearl 39 (VIP Security Launch), River Pearl 41 & 42 (Cutter Suction
Dredger) was transferred from Capital working in progress to respective Fixed Assets Classification. Expense incurred
in constructing these assets have been capitalized till the date it is available for use. Finance and transaction cost till
the date assets is available for use have also been capitalized in the cost of the assets in accordance with IND AS116.
These assets were "available for use” to generate the revenue and has been deployed with the respective projects
for which they have been acquired.
d) During the year under review, assets such as VOCPA Green Tug, River Pearl 37 , River Pearl 40 , River Pearl 44, River
Pearl 45, River Pearl 46, River Pearl 47, Speed Boat (Earlier RP39) were acquired as per the requirement of tender and
are under CWIP till the asset is made "available for use”.
e) The office construction has been successfully completed, and the Occupancy Certificate (OC) has been obtained.
Furniture installation and interior fit-out work have also been completed. The office was relocated to the newly
owned premises in May 2025 and has been functioning from the new location since then.
f) Vessels net book Value amounting to '13,168.16 Lakhs have been charged/mortgage with the lenders (Refer Note
- 13(Borrowings) & Note 1- (FAR-26).
g) The Registered Office bearing Unit No. 706-707, situated at The Epicentre, W. T. Patil Marg, Chembur East, Mumbai
- 400 071 with Net Book Value of Rs 854.42 Lakhs has been charged/mortgage with the Bank of India (Refer Note
-13 - Borrowings)
1.26. Foreign Currency Transactions:
During the year under review, the Company has earned Foreign Exchange in USD 32,19,076/- amounting to Rs. 2,955.11/-
Lakhs and the foreign exchange outflow during the year under review was USD 1,29,78,289.56 /-amounting to Rs.
11,914.07 /- Lakhs only.
Considering average 1 USD is equal to Rs. 91.80/-
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