Notes to Accounts of Chowgule Steamships Ltd.

Mar 31, 2025

2.16 Provisions:

Provisions are recognised 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. Provisions are reviewed at each balance sheet date and
are adjusted to reflect the current best estimate.

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 discounting is used, the increase
in the provision due to the passage of time is recognized as a finance cost.

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 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 arising 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 Financial Statements.

Contingent assets are not recognized but disclosed when the inflow of economic benefits is probable. However, when
the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as
an asset.

2.17 Revenue recognition:

The Company earns revenues from contracts with customers from Charter Hire Earnings, demurrage and freight earnings.

2.17.1 Determining the timing of satisfaction of performance obligations:

The Company recognises revenue when the entity satisfies the performance obligation by transferring promised goods
or services to a customer. An asset is transferred when the customer obtains control of that asset The typical timing of
payment coincides with the issue of invoice for satisfaction of performance obligations or are within the normal credit
period extended by the Company. The contract assets as at the year end pertain to the balance receivables in case of
revenues of the Company

Revenue is net of trade discounts and exclude Goods and Service Taxes (GST) or duties collected on behalf of the
government.

Determining the transaction price and the amounts allocated to performance obligations.

The transaction price is normally fixed as per the terms of contract and there are no significant judgements involved in
allocating the same to the performance obligations as the prices are standalone for separate performance obligations.

As a practical expedient, the Company has not disclosed the information for a transaction price allocated to performance
obligation which are unsatisfied as of the end of the reporting period for performance obligation which is part of a
contract that has an original expected duration of one year or less.

Trade receivables and contract balances:

The Company classifies the right to consideration in exchange for deliverables as either a receivable or as Customer
advances.

2.17.2 Dividend and interest income

Dividend income from investments is recognised when the shareholder''s right to receive payment has been established
(provided that it is probable that the economic benefits will flow to the Company and the amount of income can be
measured reliably)

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference
to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

2.17.3 Rental income

The Company''s policy for recognition of revenue from operating leases is described in note 2.8 above

2.17.4 Insurance Claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the
amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

2.17.5 Other Income

Other income is accounted for on accrual basis except where the receipt of income is uncertain in which case it is
accounted for on receipt basis.

2.18 Operating Expenses

All expenses relating to the operation of the vessel including crewing, insurance, stores, bunkers, charter hire and special
survey costs are expensed under operating expenses on accrual basis. Dry-docking expenses are amortised over 30
months.

2.19 Financial instruments:

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions
of the instrument.

Financial assets and liabilities are initially measured at fair value. 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 of the financial asset or financial liability, as
appropriate, on initial recognition. The transaction costs 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.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating
interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts future
cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period,
to the net carrying amount on initial recognition.

2.20 Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the consolidated 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. The legally enforceable right must not be contingent on future
events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy
of the company, or the counterparty.

2.21 Financial assets:

Purchases or sales of financial assets which require delivery of assets within a time frame established by regulation or
convention in the marketplace (regular way trades) are recognised on the trade date, i.e., the date that the Company
commits to purchase or sell the asset.

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

2.21.1 Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost 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 on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

2.21.2 Financial assets at fair value through other comprehensive income

Financial assets are subsequently measured at fair value through other comprehensive income if these financial assets are
held within a business model whose objective is to hold these assets in order to collect contractual cash flows or to sell
these financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

2.21.3 Financial assets at fair value through profit or loss

Financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

2.21.4 Impairment of financial assets

Loss allowance for expected credit losses is recognised for financial assets measured at amortised cost and fair value
through other comprehensive income.

Loss allowance equal to the lifetime expected credit losses is recognised if the credit risk on the financial instruments has
significantly increased since initial recognition. For financial instruments whose credit risk has not significantly increased
since initial recognition, loss allowance equal to twelve months expected credit losses is recognised.

2.21.5 Derecognition of financial assets

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

2.22 Financial liabilities and equity instruments:

Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of
its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Financial Liabilities

Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at
amortised cost, using the effective interest rate method.

Interest-bearing bank loans ,issued debts are initially measured at fair value and are subsequently measured at amortised
cost using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and
the settlement or redemption of borrowings is recognised over the term of the borrowings in accordance with the
Company''s accounting policy for borrowing costs.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged,
cancelled or they expired.

2.23 Earnings per equity share:

Basic earnings per equity share is computed by dividing the profit/(loss) after tax (including the post-tax effect of
extraordinary items, if any) attributable to the equity holders of the company by the weighted average number of
equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the profit 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 dilutive potential equity shares attributable to the equity
holders of the company by the weighted average number of equity shares considered for deriving basic earnings per
equity share and also the weighted average number of equity shares that could have been issued upon 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. The dilutive potential equity shares are adjusted for the proceeds
receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity
shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined independently for each period presented.

2.24 Segment Reporting

Operating segments are defined as components of an enterprise for which available discrete financial information is
evaluated based on the single operating segment ''Shipping'', regularly by the chief operating decision maker, in deciding
how to allocate resources and assessing performance.

Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the
basis of their relationship to the operating activities of the segment. Inter segment revenue is accounted on the basis of
transactions which are primarily determined based on market / fair value factors.

2.25 Exceptional items:

Exceptional items are those items that management considers, by virtue of their size or incidence (including but not limited
to impairment charges), should be disclosed separately to ensure that the financial information allows an understanding
of the underlying performance of the business in the year, so as to facilitate comparison with prior periods. Such items
are material by nature or amount to the year''s result and require separate disclosure in accordance with Ind AS.

r in lakhs

33 EMPLOYEE BENEFIT PLANS

a) Defined Contribution plans
Prov''dent Fund :

The Company makes contributions to Provident Fund which is defined contribution plan for qualifying employees. Under the
Scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The fund is
administered by the Trustees. The contributions payable by the Company are at rates specified in the rules of the schemes.
The Company has recognised amount in the statement of profit and loss under the head “Employee Benefit Expenses” as
mentioned in the following table.

Superannuation Fund :

All eligible employees are entitled to benefits under superannuation, a defined contribution plan. The company makes yearly
contribution until retirement or resignation of the employee. The company recognises such contributions an expense. The
Company has no further obligation beyond yearly contribution.

b) Defined benefit plan

The Company makes annual contributions to the Chowgule Steamships Limited Shore Employees Gratuity Fund (Income tax
approved irrevocable trust), which in-turn, has taken group gratuity cum Life assurance scheme of the Life Insurance Corporation
of India, which is a funded defined benefit plan for qualifying employees. This scheme provides for lump sum payment to
vested employees at retirement, death while in employment or on termination of employment as per the Company''s gratuity
scheme. Vesting occurs upon completion of five years of service.

The Company offers its employees defined benefit plan in the form of a gratuity scheme (a lump sum amount). For gratuity
scheme the Company contributes funds to Gratuity Trust, which is irrevocable. Commitments are actuarially determined at
year-end. The actuarial valuation is done based on “Projected Unit Credit” method. These plans typically expose the Company
to actuarial risk such as: investment risk, interest rate risk, longevity risk and salary risk

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will
create plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially off set by an increase in the
plan assets.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As
such, an increase in the salary of the plan participants will increase the plan''s liability.

Foot notes:

a) 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.

b) The estimate of future salary increase considered, takes into account the inflation, seniority, promotion, increments and
other relevant factors, such as supply and demand in the employment market.

c) The fair value of the plan assets are based on the LIC Fund balance position as at the Balance Sheet date. The composition
and the categories of plan assets are unavailable with the Company.

d) The expected rate of return on plan assets is based on the average long-term rate of return expected on investment of
funds during the estimated term of obligation.

37 FINANCIAL INSTRUMENTS
37.1 Capital Management

The company manages its capital to ensure that the company will be able to continue as a going concern while
maximising the return to stakeholder through the optimisation of the debt and equity balance.

The capital structure of the company consists of net debt (borrowings and off set by cash and bank balance) and total
equity of the company.

The Company''s Board of directors review the capital structure of the company on an annual basis. As part of the review,
the audit committee considers the cost of capital and the risks associated with each class of capital. The gearing ratio at
March 31, 2025 is 0 (2024: 0) (see below).

37.3 Financial Risk Management Objectives

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other
payables. The main purpose of these financial liabilities is to finance the operations. The Company''s principal financial
assets include loans, trade and other receivables, and cash and cash equivalents that generates directly from its
operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees
the management of these risks. It is the Company''s policy that no trading in derivatives for speculative purposes is
undertaken.

37.4 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk. The
objective of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return. Financial instruments affected by market risk include loans and borrowings, deposits, trade and
other receivables and investments.

37.5 Foreign currency Risk

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s operating activities and
lendings when transactions are denominated in a different currency from the Company''s functional currency.

The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk
management policies. The Company''s policy is not to hedge transactions and to buy and sell currency at spot rate where
applicable.

Sensitiv''ty analysis

The Group has not disclosed foreign currency sensitivity analysis. Since the exposure is not significant.

37.6 Interest risk

Interest risk is the risk that the fair value or future cash flows of the financial instruments will fluctuate because of the
changes in the market rate risk, the Company performs a comprehensive corporate interest rate risk management. The
Company is not exposed to significant interest rate risk as at the respective reporting dates.

The Company''s exposure to interest rates on financial assets and financial liabilities are detailed in the liquidity risk
management section.

37.7 Price risk

The Company is affected by the price volatility. The Company''s operating activities comprise of employment of ships
on time charter contracts. Due to the cyclical nature of shipping industry, the revenue from shipping operations are
subjected to price risk. To mitigate the impact of price risk the Company adopts mixture of short, medium and long term
employment contract for its fleet.

37.8 Credit risk management

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage
this, the Company periodically assesses the financial reliability of customers taking into account the financial conditions,
current economic trends and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in credit risk on an on-going basis throughout each reporting period. To assess whether there is significant
increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the
risk of default as at the date on initial recognition. Financial assets are written off when there is no reasonable expectation
of recovery. When loans or receivables have been written off, the company continues to engage in enforcement activity
to attempt to recover the receivable due. Where recoveries are made, these are recognized in statement of profit and
loss. The Companies operations involves employment of the vessels on time charter contracts where receivables are
collected periodically in advance and therefore credit risk is minimal.

37.9 Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate
liquidity risk management framework for the management of the company''s short-term, medium - term and long-term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate banking
facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial
assets and liabilities.

41 PRESENT STATUS ON LIQUIDATION OF CHOWGULE STEAMSHIPS OVERSEAS LIMITED (CSOL)

The Joint Liquidators of CSOL (In voluntary winding up) have concluded their administration of its liquidation.

In accordance with section 400 of the Companies(Guernsey) Law, 2008(as amended), on 13th March 2025, a final meeting of
CSOL members was held for the purpose of approving the companies final accounts and passed resolution accordingly.

Notice of the completion of the liquidation was filed at the Guernsey Registry on the same day & CSOL''s status was changed to “
Voluntary winding up-Part2”.

Provided no objections are received , CSOL shall be automatically dissolved from the register upon the passing of 3 months of this
date, being 13th June, 2025.

42 The Previous year''s figures have been re-classified, re-grouped and re-arranged wherever necessary

43 The Previous year''s figures have been rounded off to the nearest Lakhs.

44 The preparation of financial statements is in conformity with IndAS and requires that the management of the company makes
estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent
liabilities as at the date of financial statements.

45 CONFIRMATION OF CURRENT LIABILITIES AND CURRENT ASSETS

i) The Balances pertaining to the Current Liabilities and Current Assets are subject to confirmation. No independent confirmation
of balances of the items under the Current Liabilities and Current Assets have been obtained and consequential impact on the
Balance Sheet and Profit and Loss Statement / Account, if any, could not be ascertained.

ii) In the opinion of the Management / Board of Directors, the Current Assets, Loans and Advances are approximately of the value
stated if realized in the ordinary course of the business. Hence, no further adjustments are required to be made.

iii) However, if on later confirmation and reconciliation, any major differences are located , the consequential impact , if any , on
the Balance Sheet and Profit and Loss Statement / Account, if any, could not be ascertained.

46 TRADE PAYABLES

i) The Company has taken steps to identify suppliers who qualify under the definition of Micro and Small enterprises as defined
under the Micro, Small and Medium Enterprises Development Act, 2006 .

ii) The Company has taken note of the intimation received from certain suppliers regarding their status under the Micro, Small
and Medium Enterprises Development Act, 2006 and where the intimation is not received , the suppliers are considered to
be suppliers other than the Micro and Small enterprises

iii) Accordingly , where no intimation has been received from the suppliers regarding their status under the Micro , Small and
Medium Enterprises Development Act , 2006 , disclosures relating to amounts unpaid as at the year end , if any , have not
been furnished.

iv) In the opinion of the management, the impact of the interest, if any , that may be payable in accordance with the provisions
of the Micro , Small and Medium Enterprises Development Act , 2006 , is not expected to be material .

47 BENAMI PROPERTY

There are no proceedings initiated or pending against the company for holding any benamy property under the Benami Transactions
Prohibition Act, 1988 and the rules made thereunder.

48 WILFUL DEFAULTER

The Company has not been declared a wilful defaulter by any bank or financials institution or other lender

49 STRUCK OFF COMPANIES

The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the
Companies Act, 1956.

50 REGISTRATION OF CHARGES

The Company has certain open charges against the loans which have been repaid in the previous years. The necessary compliances
with respect to release of charge from bankers and corresponding updation with ROC is in process.

51 LAYERS

The Company has complied with the number of the layers prescribed under clause 87 of the section 2 of the Companies Act,
2013 read with Companies (restrictionon number of layers) rules, 2017.

52 SCHEME OF ARRANGEMENTS

There is no scheme of Arrangements approved for the company in terms of section 230 to 237 of the Companies Act, 2013.

53 INTERMEDIARY

i) The Company has not advanced or loaned or invested any funds through the intermediary for the ultimate beneficiary.

ii) The Company has not received any fund to be advanced or loaned or invested for advancing or lending or investing as an
intermediary for the ultimate beneficiary.

54 UNDISCLOSED INCOME

The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as
income during the year.

55 CRYPTO CURRENCY

The Company has neither traded not invested in crypto currency or virtual currency during the financial year.

In terms of our report attached For and on behalf of the Board of Directors

For M N CHOKSI AND CO LLP RINKY GUPTA (Membership No. A61742) VIJAY CHOWGULE (DIN:00018903)

Chartered Accountants Company Secretary Chairman

FRN 101899W\W100812 Place: Mumbai Place: Mumbai

Date: 22^nd May, 2025 Date: 22^nd May, 2025

CA M N CHOKSI

_Partner VIKRAM DESHPANDE (PAN:AAQPD3025L) MANGESH SAWANT (DIN:00007197)

Membership No. 041224 Chief Financial Officer ^Director

UDIN: 25041224BMMBPT5365

Place: Mumbai Place: Mumbai Place: Mumbai

Date: 22^nd May, 2025 Date: 22^nd May, 2025 Date: 22^nd May, 2025

---

Mar 31, 2024

(i) Loans to related party and loan to others are receivable on demand after one year. Interest is receivable @7% p.a. During the year 2021-22 out of ? 1,500 lakhs loan given to related party an amount of ? 200 lakhs has been refunded in previous year by the related party. During the previous year i.e. FY 2022-23 based on request received from the above parties an amount of ? 192.13 Lakhs was waived.

(ii) During the earlier year out of loan given to others, an amount of ? 7.84 lakhs has been given to an employee. Out of which an amount of ? 2.37 lakhs has been recovered from employee. Interest is receivable @5.4% p.a over a period of 5 years.

(iii) During the year there are no loans granted to parties covered under section 185 of the Companies Act, 2013.

(iv) Loans and advances in the nature of loans granted to related parties and others that are receivable on demand after one year are as below:

(i) The Company has paid an advance for purchase of immovable property vide Agreement to Sell (Sathekhat) dated 21-Feb-2024. Accordingly, stamp duty and registration fees paid are grouped under Capital Advances.

(ii) The Company Management has policy to capitalize the immovable property after execution of the Sale Deed consequent to the full payment under the Agreement to Sell (Sathekhat).

(I) Rights, preferences and restrictions attached to equity shares

The Company has issued only one class of shares referred to as equity shares having a par value of R 10. Each holder of equity shares is entitled to one vote per share.The Company declares dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting except, in the case of interim dividend. The equity shares are not repayable except, in the case of a buy-back, reduction of capital or winding up. In the event of liquidation of the Company, members of the Company holding equity shares are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(II) In last 5 years no classes of shares has been issued or bought back by the Company nor have any bonus issues been made by the Company.

Nature of reserves Capital reserve:

Capital reserve includes profit on forfeiture of shares.

Capital redemption reserve:

Capital redemption reserve is created out of profits on redemption of preference share capital. Securities premium reserve:

Amount received on issue of shares in excess of the par value has been classified as securities premium.

General reserve:

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

Retained earnings:

The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering the requirements of the Companies Act, 2013.

25 CONTINGENT LIABILITIES	As at	As at
	31st March, 2024	31st March, 2023
a. Claims against the company not acknowledged as debt; Sales tax demand not prov''ded for: (Refer note no 7)	237.00	237.00
The Company has contested the above claims against the Order of the Appellate Assistant Commissioner, Chennai, confirming the Order of the Commercial Tax Officer for the Assessment Year 1995-96 in respect of charter hire of the vessel, ''m.v. Maratha Prudence''. The Company had already deposited R 47.40 lakhs (including refunds withheld by the authorities) and executed a bond of R 218.04 lakhs in respect of the said claim The Company does not expect any liability to devolve on it in respect of the above and therefore no provision is held. b. Income tax demand not provided for: (Refer note no. 7) The company has filed appeal in respect of the same.	32.72	32.72
Note : Future cash outflows in respect of the above matters are determinable only on receipt of judgments / decisions pending at various forums / authorities. The Company believes the probabilty of the assessments in accordance with Ind AS 12 in these cases is nil, accordingly no provision is made in books of accounts

33 EMPLOYEE BENEFIT PLANS

a) Defined Contribution plans Provident Fund :

The Company makes contributions to Provident Fund which is defined contribution plan for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The fund is administered by the Trustees. The contributions payable by the Company are at rates specified in the rules of the schemes. The Company has recognised amount in the statement of profit and loss under the head “Employee Benefit Expenses” as mentioned in the following table.

Superannuation Fund :

All eligible employees are entitled to benefits under superannuation, a defined contribution plan. The company makes yearly contribution until retirement or resignation of the employee. The company recognises such contributions an expense. The Company has no further obligation beyond yearly contribution.

b) Defined benefit plan

The Company makes annual contributions to the Chowgule Steamships Limited Shore Employees Gratuity Fund (Income tax approved irrevocable trust), which in-turn, has taken group gratuity cum Life assurance scheme of the Life Insurance Corporation of India, which is a funded defined benefit plan for qualifying employees. This scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company''s gratuity scheme. Vesting occurs upon completion of five years of service.

The Company offers its employees defined benefit plan in the form of a gratuity scheme (a lump sum amount). For gratuity scheme the Company contributes funds to Gratuity Trust, which is irrevocable. Commitments are actuarially determined at year-end. The actuarial valuation is done based on “Projected Unit Credit” method. These plans typically expose the Company to actuarial risk such as: investment risk, interest rate risk, longevity risk and salary risk

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially off set by an increase in the plan assets.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

a) 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.

b) The estimate of future salary increase considered, takes into account the inflation, seniority, promotion, increments and other relevant factors, such as supply and demand in the employment market.

c) The fair value of the plan assets are based on the LIC Fund balance position as at the Balance Sheet date. The composition and the categories of plan assets are unavailable with the Company.

d) The expected rate of return on plan assets is based on the average long-term rate of return expected on investment of funds during the estimated term of obligation.

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.. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation 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.

35 SEGMENT REPORTING

The Company treats ''Shipping'' as single reportable segment. All other activities of the company revolve around its main business. Therefore there are no separate reportable segment. Given the nature of the business there are no geographic segments.

37 FINANCIAL INSTRUMENTS

37.1 Capital Management

The company manages its capital to ensure that the company will be able to continue as a going concern while maximising the return to stakeholder through the optimisation of the debt and equity balance.

The capital structure of the company consists of net debt (borrowings and off set by cash and bank balance) and total equity of the company.

The Company''s Board of directors review the capital structure of the company on an annual basis. As part of the review, the audit committee considers the cost of capital and the risks associated with each class of capital. The gearing ratio at March 31, 2024 is 0 (2023: 0) (see below).

37.3 Financial Risk Management Objectives

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that generates directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. It is the Company''s policy that no trading in derivatives for speculative purposes is undertaken.

37.4 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Financial instruments affected by market risk include loans and borrowings, deposits, trade and other receivables and investments.

37.5 Foreign currency Risk

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s operating activities and lendings when transactions are denominated in a different currency from the Company''s functional currency.

The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies. The Company''s policy is not to hedge transactions and to buy and sell currency at spot rate where applicable. 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

37.6 Interest risk

Interest risk is the risk that the fair value or future cash flows of the financial instruments will fluctuate because of the changes in the market rate risk, the Company performs a comprehensive corporate interest rate risk management. The Company is not exposed to significant interest rate risk as at the respective reporting dates.

The Company''s exposure to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section.

37.7 Price risk

The Company is affected by the price volatility. The Company''s operating activities comprise of employment of ships on time charter contracts. Due to the cyclical nature of shipping industry, the revenue from shipping operations are subjected to price risk. To mitigate the impact of price risk the Company adopts mixture of short, medium and long term employment contract for its fleet.

37.8 Credit risk management

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers taking into account the financial conditions, current economic trends and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an on-going basis throughout each reporting period. To assess whether there is significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date on initial recognition. Financial assets are written off when there is no reasonable expectation of recovery. When loans or receivables have been written off, the company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in statement of profit and loss. The Companies operations involves employment of the vessels on time charter contracts where receivables are collected periodically in advance and therefore credit risk is minimal.

37.9 Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company''s short-term, medium - term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate banking facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

37.9.1 Expected maturity for non-derivative financial liability

The following table details the company''s remaining contractual maturity for the non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flow of financial liabilities based on the earliest date on which the company may be required to pay. The table includes both interest and principal cash flows.

37.9.2 Expected maturity for non-derivative financial assets

The following table details the company''s expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial asset is necessary in order to understand the company''s liquidity risk management as the liquidity is managed on a net asset and liability basis.

The amount included above for variable interest instruments for both non-derivatives financial assets and liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.

The Company does not enjoy working capital facility. The Company expects to meet its obligations from operating cash flows and proceeds of maturing financial assets.

1) Contractual obligation against property, plant & equipment of previous year became due within one year.

2) Increase in revenue and recovery of sundry balances previously written off.

3) Increase in trade debtors.

39 EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY (CSR)

The company has not incurred any expenditure towards Corporate Social Responsibility, as the provision of section 135 of the Companies Act,2013 is not applicable to the Company.

40 DISCLOSURE PURSUANT TO SECTION 186(4) OF THE COMPANIES ACT, 2013

Details of loans given, Investments made, Guarantee and Security provided and oustanding , covered under section 186 of the Companies Act, 2013.

41 Chowgule Steamships Overseas Ltd (CSOL), 100% Wholly Owned Subsidiary (WOS) of Chowgule Steamships Limited (CSL) registered in Guernsey, United Kingdom. CSOL has gone into Insolvent Liquidation. Following the passing of a resolution of the Shareholders on 13th March 2024, the subsidiary Company viz CSOL was wound up and placed into liquidation and CSOL has appointed Leonard Curtis along with Sophie Smith as Liquidators (the Joint “Liquidators”) to the said Company.

In accordance with Section 395(2) of the Companies (Guernsey) Law 2008, as amended (the “Law”), upon the appointment of a liquidator, all powers of the Directors ceases, unless liquidator sanctions their continuance.

In view of the above, since CSOL is under liquidation as on the date of reporting period i.e. on 31st March 2024 neither financial statements of CSOL as on 31st March 2024 has been prepared nor consolidated financials of CSL have been prepared.

However, as on the date of liquidation i.e. on 13th March 2024, CSOL was having following financial position which is submitted to the Liquidators.

The Provision for the impairment of the value of the shareholding assets in the subsidiary company has already been made in the earlier years and the value of the shares is being carried forward as NIL value, hence there is no impact on the Statement of Profit and Loss and the Balance Sheet.

42 The Previous year''s figures have been re-classified, re-grouped and re-arranged wherever necessary

43 The Previous year''s figures have been rounded off to the nearest Lakhs.

44 The preparation of financial statements is in conformity with IndAS and requires that the management of the company makes estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of financial statements.

45 CONFIRMATION OF CURRENT LIABILITIES AND CURRENT ASSETS

i) The Balances pertaining to the Current Liabilities and Current Assets are subject to confirmation. No independent confirmation of balances of the items under the Current Liabilities and Current Assets have been obtained and consequential impact on the Balance Sheet and Profit and Loss Statement / Account, if any, could not be ascertained.

ii) In the opinion of the Management / Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of the business. Hence, no further adjustments are required to be made.

iii) However, if on later confirmation and reconciliation, any major differences are located , the consequential impact , if any , on the Balance Sheet and Profit and Loss Statement / Account, if any, could not be ascertained.

46 TRADE PAYABLES

i) The Company has taken steps to identify suppliers who qualify under the definition of Micro and Small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006.

ii) The Company has taken note of the intimation received from certain suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and where the intimation is not received , the suppliers are considered to be suppliers other than the Micro and Small enterprises

iii) Accordingly , where no intimation has been received from the suppliers regarding their status under the Micro , Small and Medium Enterprises Development Act , 2006 , disclosures relating to amounts unpaid as at the year end , if any , have not been furnished.

iv) In the opinion of the management, the impact of the interest, if any , that may be payable in accordance with the provisions of the Micro , Small and Medium Enterprises Development Act , 2006 , is not expected to be material.

47 BENAMI PROPERTY

There are no proceedings initiated or pending against the company for holding any benamy property under the Benami Transactions Prohibition Act, 1988 and the rules made thereunder.

48 WILFUL DEFAULTER

The Company has not been declared a wilful defaulter by any bank or financials institution or other lender

49 STRUCK OFF COMPANIES

The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

50 REGISTRATION OF CHARGES

The Company has certain open charges against the loans which have been repaid in the previous years. The necessary compliances with respect to release of charge from bankers and corresponding updation with ROC is in process.

51 LAYERS

The Company has complied with the number of the layers prescribed under clause 87 of the section 2 of the Companies Act, 2013 read with Companies (restrictionon number of layers) rules, 2017.

52 SCHEME OF ARRANGEMENTS

There is no scheme of Arrangements approved for the company in terms of section 230 to 237 of the Companies Act, 2013.

53 INTERMEDIARY

53.1 The Company has not advanced or loaned or invested any funds through the intermediary for the ultimate beneficiary.

53.2 The Company has not received any fund to be advanced or loaned or invested for advancing or lending or investing as an intermediary for the ultimate beneficiary.

54 UNDISCLOSED INCOME

The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year.

55 CRYPTO CURRENCY

The Company has neither traded not invested in crypto currency or virtual currency during the financial year.

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Mar 31, 2017

1. Corporate information

Chowgule Steamships Limited (CSL) (“the Company”) is a limited company incorporated & domiciled in India whose shares are publically traded on Bombay Stock Exchange. CSL is a shipping company which presently owns and operates a fleet of 5 vessels (including that of its wholly owned subsidiaries) for seaborne transportation of bulk cargo. CSL is principally engaged in the carriage of goods by sea and is committed to serve its customers to their satisfaction and mutual optimum benefits.

The Company’s registered office address is at Chowgule House, Mormugao Harbour, Goa - 403 803 and the principal place of business is 4th Floor, Bakhtawar, Nariman Point, Mumbai 400 021.

2. Recent accounting pronouncement:

Standards issued but not yet effective:

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ‘Statement of Cash Flows’ and Ind AS 102, ‘Share-based payment.’ These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ‘Statement of Cash Flows’ and IFRS 2, ‘Share-based payment,’ respectively. The amendments are applicable from 1st April, 2017.

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated. Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash settled awards and awards that include a net settlement feature in respect of withholding taxes.

The requirements of the amendment have no impact on the financial statements applicable as the Company does not have any share based payments.

3 Employee benefit plans

a) Defined Contribution plans Provident Fund :

The Company makes contributions to Provident Fund which is defined contribution plan for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The fund is administered by the Trustees. The contributions payable by the Company are at rates specified in the rules of the schemes. The Company has recognised amount in the statement of profit and loss under the head “Employee Benefit Expenses” as mentioned in the following table.

Superannuation Fund :

All eligible employees are entitled to benefits under superannuation, a defined contribution plan. The company makes yearly contribution until retirement or resignation of the employee. The company recognises such contributions an expense. The Company has no further obligation beyond yearly contribution.

The Company has recognised the following amounts in the Statement of profit and loss as contribution under defined contribution schemes

b) Defined benefit plan

The Company makes annual contributions to the Chowgule Steamships Limited Shore Employees Gratuity Fund (Income tax approved irrevocable trust), which in-turn, has taken group gratuity cum Life assurance scheme of the Life Insurance Corporation of India, which is a funded defined benefit plan for qualifying employees. This scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company’s gratuity scheme. Vesting occurs upon completion of five years of service.

The Company offers its employees defined benefit plan in the form of a gratuity scheme (a lump sum amount). For gratuity scheme the Company contributes funds to Gratuity Trust, which is irrevocable. Commitments are actuarially determined at year-end. The actuarial valuation is done based on “Projected Unit Credit” method. These plans typically expose the Company to actuarial risk such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially off set by an increase in the plan assets.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

Foot notes:

a) 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.

b) The estimate of future salary increase considered, takes into account the inflation, seniority, promotion, increments and other relevant factors, such as supply and demand in the employment market.

c) The fair value of the plan assets are based on the LIC Fund balance position as at the balance sheet date. The composition and the categories of plan assets are unavailable with the Company.

d) The expected rate of return on plan assets is based on the average long-term rate of return expected on investment of funds during the estimated term of obligation.

The current service cost and the net interest expense for the year are included in the “Employee benefits expense” line item in the statement of profit and loss. The remeasurement of the net defined liability is included in other comprehensive income.

4 Segment reporting

The Company treats ‘Shipping’ as single reportable segment. All other activities of the company revolve around its main business. Therefore there are no separate reportable segment. Given the nature of the business there are no Geographic Segments either. The segment information has been provided in consolidated financial statements.

5 During the year, the Company had Specified Bank Notes (SBN) or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 31 March, 2017 on the details of SBN held and transacted during the period from 8 November, 2016 to 30 December, 2016, the denomination wise SBNs and other notes as per the notification is given below:

6. Financial instruments

6.1 Capital management

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the return to stakeholder through the optimisation of the debt and equity balance.

The capital structure of the company consists of net debt (borrowings as detailed in note 21 & 23 and off set by cash and bank balance) and total equity of the Company.

6.1.1 Gearing ratio

The gearing ratio at the end of the reporting period was as follows:

6.2 Financial risk management objectives

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that generates directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. It is the Company’s policy that no trading in derivatives for speculative purposes is undertaken. The Company’s risk management committee, an independent body, monitors risk and policies implemented by the Company to mitigate risk exposures.

6.3 Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Financial instruments affected by market risk include loans and borrowings, deposits, trade and other receivables and investments.

6.4 Foreign currency risk

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company’s exposure to currency risk relates primarily to the Company’s operating activities and borrowings when transactions are denominated in a different currency from the Company’s functional currency. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies. 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.

6.5 Interest risk

Interest risk is the risk that the fair value or future cash flows of the financial instruments will fluctuate because of the changes in the market rate risk, the Company performs a comprehensive corporate interest rate risk management. The Company is not exposed to significant interest rate risk as at the respective reporting dates.

The Company’s exposure to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section.

6.7 Price risk

The Company is affected by the price volatility. The Company’s operating activities comprise of employment of ships on time charter contracts. Due to the cyclical nature of shipping industry, the revenue from shipping operations are subjected to price risk. To mitigate the impact of price risk the Company adopts mixture of short, medium and long term employment contract for its fleet.

6.8 Credit risk management

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers taking into account the financial conditions, current economic trends and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an on-going basis throughout each reporting period. To assess whether there is significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date on initial recognition. Financial assets are written off when there is no reasonable expectation of recovery. When loans or receivables have been written off, the company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss. The Companies operations involves employment of the vessels on time charter contracts where receivables are collected periodically in advance and therefore credit risk is minimal.

6.9 Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the company’s short-term, medium - term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate banking facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

6.9.1 Expected maturity for non-derivative financial liability

The following table details the Company’s remaining contractual maturity for the non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flow of financial liabilities based on the earliest date on which the Company may be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

6.9.2 Expected maturity for non-derivative financial assets

The following table details the Company expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial asset is necessary in order to understand the Company’s liquidity risk management as the liquidity is managed on a net asset and liability basis.

The amount included above for variable interest instruments for both non-derivatives financial assets and liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.

The Company do not enjoy working capital facility. The Company expects to meet its obligations from operating cash flows and proceeds of maturing financial assets.

6.9.3 Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Companies financial assets and financial liabilities that are measured at fair value or where fair value disclosure is required as at 31st March 2017:

7 Explanation of transition to Ind AS

The Company’s financial statements for the year ended 31st March, 2017 are the first annual financial statements prepared by the Company in order to comply with Ind AS. The adoption of Ind AS was carried out in accordance with Ind AS 101, using 1st April, 2015 as the transition date. The transition was carried out from Previous GAAP (based on the AS framework) to Ind AS. The effect of adopting Ind AS has been summarised in the reconciliations provided below. Ind AS 101 generally requires full retrospective application of the Standards in force at the first reporting date. However, Ind AS 101 allows certain exemptions in the application of particular Standards to prior periods in order to assist companies with the transition process.

Reconciliations

The accounting policies as stated in note 3 have been applied in preparing the financial statements for the year ended 31st March, 2017, the financial statements for the year ending 31st March, 2016 and the preparation of an opening Ind AS statement of financial position as at 1st April, 2015. In preparing its opening Ind AS balance sheet and statement of profit and loss for the year ended 31st March, 2016, the Company has adjusted amounts reported in financial statements prepared in accordance with Previous GAAP. An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flow is set out in the following tables.

iii Explanation of material adjustments to statement of cash flow for the year ended 31st March, 2016

Under Ind AS, bank overdrafts which are repayable on demand and form an integral part of an entity’s cash management system are included in cash and cash equivalent for the purpose of presentation of statement of cash flows. Whereas under previous GAAP, there was no similar guidance and hence, bank overdrafts were considered similar to other borrowings and the movements therein were reflected in cash flows from financing activities. The effect of this is that bank overdrafts of Rs.193.26 Lakhs as at 31st March, 2015 have been considered as part of cash and cash equivalents under Ind AS for the purpose of presentation of statement of cash flows. Consequently, the cash outflow from financing activities as per the statement of cash flows for the year ended 31st March, 2016 prepared as per Ind AS is lower to the extent of this net movement of Rs.193.26 Lakhs

Notes to the reconciliations

a) Under previous GAAP, payment for property, plant and equipment is deferred beyond normal credit terms, its cost is the cash price equivalent unless interest element is specifically identified in the arrangement. Under Ind AS the difference between the purchase price under normal credit terms and the total amount incurred would be recognised as interest expense over the period of the credit term. Accordingly, the Company has derecognised Rs.421.48 lakhs from gross block and Rs.0.14 lakhs from depreciation and an equivalent amount has been recognised in statement of profit and loss as on 31st March, 2016. The net effect of these changes is a decrease in total equity as at 31st March, 2016 of Rs.1.07 lakhs and increase of Rs.1.07 lakhs in Loss before tax and increase of Rs.0.71 lakhs in loss after tax for the year ended 31st March, 2016.

b) Under previous GAAP, current investment were measured at lower of cost or fair value. Under Ind AS, these financial assets have been classified as FVTPL on date of transition. The fair value changes are recognised in profit or loss. On transitioning to Ind AS, these financial assets have been measured at their fair values which is higher than cost as per previous GAAP, resulting in an increase in carrying amount by Rs.18.05 lakhs as at 31st March, 2016 and increase by Rs.57.58 lakhs as at 1st April, 2015 . The net effect of these changes is an decrease in total equity as at 31st March, 2016 of Rs.18.05 lakhs (Rs.57.58 lakhs increase as at 1st April 2015) and increase in loss before tax of Rs.39.53. lakhs.

c) Under the previous GAAP, Interest free security deposit (that are refundable in cash on completion of the lease term) are recorded at their transactional value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued the security deposit under Ind AS. Difference between the fair value and transaction value of the security deposit has been considered as advance rent receivable from lessee. This is recognized as additional rental income on a straight line basis over the lease term. Interest will be accreted on the fair value recognised on inception to bring fair value to deposit amount will be repaid. Consequent to this change, the amount of security deposit decreased by Rs.14.96 lakhs as at 31st March, 2016 (1st April 2015 - Rs.21.57 lakhs ) and advance rent Increased by Rs.6.66 lakhs as at 31st March, 2016 (1st April, 2015 - Rs.13.31 lakhs). The loss for the year decreased by Rs.6.65 lakhs due to recognition of additional rental income which is partially off-set by notional interest expense of Rs.6.60 lakhs recognised on security deposit consequently, total equity as at 31st March, 2016, increased by 1.64 lakhs (1st April, 2015 - Rs.1.60 lakhs).

d) Under previous GAAP, actuarial gains and losses were recognised in profit and loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/ asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of profit or loss, The actuarial loss for the year ended 31st March, 2016 were Rs.70.47 lakhs and the tax effect thereon Rs.23.30 lakhs . This change does not affect total equity, but there is a decrease in loss before tax of Rs.70.47 lakhs and in total loss of Rs.47.17 lakhs for the year ended 31st March, 2016.

8 Events after the reporting period

There are no events that needs to be reported after balance sheet date.

9 Approval of financial statements

The financial statements were approved and taken on record by the Board of Directors at its meeting held on May 12, 2017.

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Mar 31, 2016

1. SEGMENT REPORTING

The Company treats ''Shipping'' as single business segment and therefore details of segments are not separately shown. Given the nature of the business there are no Geographic Segments either.

2. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2015

1. Corporate information:

Chowgule Steamships Limited (CSL) ("the Company") is a shipping company which presently owns and operates a fleet of 5 vessels (including that of its wholly owned subsidiaries) for seaborne transportation of bulk cargoes. CSL is principally engaged in the carriage of goods by sea and is committed to serve its customers to their satisfaction and mutual optimum benefits.

2. Rights, Preferences and Restrictions Attached to Equity Shares

The Company has issued only one class of shares referred to as equity shares having a par value of Rs. 10.

Each holder of equity shares is entitled to one vote per share.

The Company declares dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting except, in the case of interim dividend.

The equity shares are not repayable except, in the case of a buy-back, reduction of capital or winding up. In the event of liquidation of the Company, members of the Company holding equity shares are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

In last 5 years no classes of shares has been issued or bought back by the Company nor have any bonus issues been made by the Company.

3. CONTINGENT LIABILITIES

a) Sales Tax demand not provided for: (Refer to Note No. 13) 237.00 237.00 Note: The Company has contested the above claims against the Order of the Appellate Assistant Commissioner, Chennai, confirming the Order of the Commercial Tax Officer for the Assessment Year 1995-96 in respect of charter hire of the vessel, ''m.v. Maratha Prudence''. The Company has already deposited Rs. 47.40 lakhs (Refer Note No. 13) (including refunds withheld by the authorities) and executed a bond of Rs. 218.04 lakhs in respect of the said claim. The Company does not expect any liability to devolve on it in respect of the above and therefore no provision is held.

b) Income Tax demand not provided for: 479.71 386.14 The Company has filed appeal in respect of the same. Note : Future cash outflows in respect of the above matters are determinable only on receipt of judgments / decisions pending at various forums / authorities.

4. SEGMENT REPORTING

The Company treats ''Shipping'' as single business segment and therefore details of segments are not separately shown. Given the nature of the business there are no Geographic Segments either.

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Mar 31, 2013

The Company has issued only one class of shares referred to as Equity Shares having a par value of Rs. 10.

Each holder of Equity Shares is entitled to one vote per share.

The Company declares and pays dividends in Indian Rupees.

The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However,no such preferential amounts exist currently. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

In last 5 years, no classes of shares has been issued or bought back by the Company nor have any bonus issues been made by the Company. Following are the names of the shareholders together with the number of Equity Shares holding more than 5 percent of the total Equity Shares:

Terns of Repayment

The loan shall be repaid over a period of 8 years in 16 Semi annual installments to be paid durins Septermber & March every year of USD 1,500,000 each plus USD 6,000,000 alongwith last installment. Till date 12 installments of USD 1,500,000 has been paid and USD 8,500,000 has been prepaid.

1 CONTINGENT LIABILITIES AND COMMITMENTS

Sales Tax demand not provided for: (Refer to Note No. 14) 237.00 237.00

Note: The Company has contested the above claims asainst the Order of the Appellate Assistant Commissioner, Chennai, confirmins the Order of the Commercial Tax Officer for the Assessment Year 1995-96 in respect of charter hire of the vessel, ''m.v. Maratha

Prudence''. The Company has already deposited Rs. 47.40 lakhs (Refer Note No.14) (including refunds withheld by the authorities) and executed a bond of Rs. 218.04 lakhs in respect of the said claim. The Company does not expect any liability to devolve on it in respect of the above and therefore no provision is held.

The estimates of future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

The contribution expected to be made by the Company during the financial year 2013-14 is Rs. 19.00 lakhs (2012-13Rs. 25.00 lakhs).

The amounts of the present value of the obligation, fair value of plan assets, surplus or deficit in the plan, experience adjustment arising on plan liabilities and plan assets for the current annual period and previous four periods are as under -

2 SEGMENT REPORTING

The Company treats ''Shipping'' as single business segment and therefore details of segments are not separately shown. Given the nature of the business there are no Geographic Segments either.

3 Previous year''s figures have been regrouped /reclassified wherever necessary to correspond with the current year''s classification /disclosure.

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Mar 31, 2011

1. CONTINGENT LIABILITIES (NOT PROVIDED FOR):

In respect of a Sales Tax demand, the Company has contested claims amounting to Rs. 23,700 thousand (2010 - Rs. 23,700 thousand) against the Order of the Appellate Assistant Commissioner, Chennai, confirming the Order of the Commercial Tax Officer for the Assessment Year 1995-96 in respect of charter hire of the vessel, m.v. Maratha Prudence. The Company has already deposited Rs. 14,740 thousand (including refunds withheld by the authorities) and executed a bond of Rs. 21,804 thousand in respect of the said claim. The Company does not expect any liability to devolve on it in respect of the above and therefore no provision is held.

Guarantees given by Bank and counter guaranteed by the Company is Rs. 50 thousand (2010 - Rs. 50 thousand) for due performance of the Companys obligations.

2. i) Miscellaneous Income includes exchange gain (net) Rs. 11,725 thousand (2010- Rs. Nil)

ii) Miscellaneous Expenses include exchange loss (Net) Rs. Nil (2010- Rs. 72,038 thousand)

The revaluation was based on comparable sale approach, taking into consideration situation of buildings, size, specification of construction, existing amenities and demand for such type of buildings in same locality and prevailing market for such type of buildings. Revaluation Reserve was appropriately created for the same.

3. Depreciation provided on the revalued portion of the buildings amounting to Rs. 7,186 thousand (2010- Rs. 7,564 thousand) has been directly adjusted from the Revaluation Reserve.

4.SEGMENT REPORTING

The Company treats Shipping as single business segment and therefore details of segments are not separately shown. Given the nature of the business there are no Geographic Segments either.

5. RELATED PARTY TRANSACTIONS

As per Accounting Standards (AS) 18, the transactions with Companys related parties are disclosed below: Name of the related parties where control exists

a) Chowgule Steamships Overseas Ltd. (CSOL) - Wholly owned subsidiary

b) Sunshine LLC - Wholly owned subsidiary of CSOL

c) Sea Bird LLC - Wholly owned subsidiary of CSOL

d) Sea Lord LLC - Wholly owned subsidiary of CSOL

e) Sea Green LLC - Wholly owned subsidiary of CSOL

f) Sea King LLC - Wholly owned subsidiary of CSOL

The Company has recognised in the Profit and Loss Account the net provision of deferred tax asset of Rs. 54,990 thousand (2010- net provision of deferred tax liability of Rs. 167,134 thousand),

Deferred Tax Asset had been recognized in the previous year on carry forward of Losses to the extent that the reversal of the deferred tax liability will give rise to sufficient future taxable income against which such deferred tax asset can be realized.

Deferred Tax Asset had also been recognized in the previous year on carry forward of long term capital losses on the assumption that the Company would make profits from current investments which are likely to be disposed off.

6. According to the information available with the Company there are no dues payable to micro and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2011. This has been accepted by the Auditors.

7. The Ministry of Corporate Affairs, Government of India vide its notification dated 8th February, 2011 granted general exemption under sub-section (3) of section 211 of the Companies Act, 1956 to certain classes of Companies, including Shipping Companies from disclosing information under paragraphs 4-D(a), (b), (c) and (e) of Part II to Schedule VI of the Companies Act, 1956 in the Profit & Loss Account. The Board of Directors have passed a resolution to avail of the aforesaid exemption for the current financial year.

8. Previous years figures have been regrouped wherever necessary to conform to current years presentation.