Notes to Accounts of Global Offshore Services Ltd.

Mar 31, 2024

3.8 Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

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

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

3.9 Investment in subsidiaries

The Company has availed the optional exemption under Ind AS 101 and accordingly it has used the carrying value as at the date of transition i.e. 1st April 2016 as the deemed cost for investment in subsidiaries. The Company''s investment in instruments of subsidiaries are accounted for at cost less impairment loss if any.

3.9.1 Investment in Associate

Investments in associates are initially recognized at cost, which includes transaction costs directly attributable to the acquisition. Subsequently, these investments are measured using the equity method, where the carrying amount is adjusted for the investor’s share of the associate''s profit or loss and other comprehensive income. Any dividends received from the associate reduce the carrying amount of the investment. The investment is tested for impairment whenever there is an indication that the investment may be impaired, in line with Ind AS 36.

3.10 Financial asset

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

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

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

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

3.10.2 Financial Assets at Fair value through Other Comprehensive Income (FVTOCI)

Financial assets at FVTOCI are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognized in Other Comprehensive Income.

3.10.3 Impairment of financial assets

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

For trade receivables or any contractual rights to receive cash or another financial assets that results from transactions that are within the scope of Ind AS 18, the Company always measures their allowances at an amount equal to lifetime expected credit losses.

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

3.10.4 Derecognition of financial assets

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

3.11 Foreign Exchange Transaction

Transactions in foreign currency are recorded at the standard exchange rates determined monthly. Monetary assets and liabilities denominated in foreign currency, remaining unsettled at the period end are re-stated at closing rates. The difference in translation of monetary assets and liabilities and realised gains and losses on foreign currency transactions (including those relating to acquisition of depreciable assets) is recognised in the Profit and Loss Account.

Foreign Exchange gain or loss on restatement of long term foreign currency borrowing is recognised in the profit and loss.

In the previous GAAP the Company has created Foreign Exchange Hedge Reserve and any foreign exchange gain or loss on restatement were transfer to this account and subsequently on actual realisation of exchange gain / loss, such amount is transfer to the profit and loss account. Under lnd-AS-21 -The effects in changes in foreign exchange rates, exchange gain / loss on such restatement of foreign currency loans needs to charge to profit and loss account. Accordingly on transition date i.e. 01/04/2016, debit balance in Hedge Reserve Account amounting to Rs. 3735.90 lakhs have been transferred to retained earnings.

3.12 Leases

In accordance with Ind-AS 116, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease, in case of short-term leases and leases of low value assets.

In case of long-term leases, the right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

A lease liability is re-measured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease payments. The remeasurement normally also adjusts the leased assets. Lease liability and ROU assets are separately presented in the Balance Sheet and lease payments are classified as financing cash flows.

3.13 Employee benefits

The Defined benefit plan

The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligations is performed periodically by an independent qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements. Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses and the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in other comprehensive income (OCI). Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset). Net interest expense and other expenses related to defined benefit plans are recognised in Consolidated Statement of Profit and Loss. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in Consolidated Statement of Profit and Loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

3.14 Financial Liabilities

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

3.14.1 Financial liabilities at FVTPL

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

3.14.2 Financial liabilities subsequently measured at amortised cost

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

3.14.3 Derecognition of financial liabilities

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

3.15 Cash flow statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

3.16 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for the events for bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares). Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares.

3.17 Segment Reporting

The Company is engaged in only one type of business i.e. ownership/charter of offshore support vessels. There are no separate reportable segments.

3.18 Critical accounting judgements and key sources of estimation uncertainty

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

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

4 Amendment to Existing issued Ind AS Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

(A) Defined benefit plans

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

(a) Characteristics of defined benefit plan

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

(b) Risks associated with defined benefit plan

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

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

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

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

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

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

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

(c) Characteristics of defined benefit plans

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

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

30 - Risk management 30A Capital risk management

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the returns to stakeholders. 30B Financial instruments

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

30C Financial and liquidity risk management objectives

The average payment terms of creditors (trade payables) is 90-120 days. Other financial liabilities viz. employee payments, other payables are payable as and when due.

30D Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The major class of financial asset of the Company is trade receivables. For credit exposures to customer, management assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. As the Company does not hold any collateral, the maximum exposure to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented on the statement of financial position.

30E Foreign Currency risk management

Since part of the revenues of the Company are denominated in US Dollars, there is a translation risk as the Company has to report its financial performance in INR. However, a small portion of the risk is “paired”, as some of the Company’s operating costs are incurred in US Dollars.

31 - Segment Information

The Company is engaged in only one type of business i.e. charter of offshore support vessels. There are no separate reportable segments.

36 Other Statutory Information

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

ii. The Company does not have any transactions with companies that have been struck off.

iii. The Company has created charges in favour of an ARC which have “"stepped into the shoes"” of erstwhile lenders of the Company. The Company has filed satisfaction of Charges with MMD ( Mercantile Marine Department) and ROC (Registrar of Companies), in respect of dues that have been repaid. However, some old charges are still appearing in the record of MCA site for the loans that has been repaid in full. The Company is in the process to vacate the same.

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

v. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vi. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

vii. The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

viii. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

37 The Company does not have any material significant impact due to Ind AS 116 - Leases, as all the lease arrangement are of short term nature with insignificant value.

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

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

For D. Kothary & Co. Aditya Garware J. M. Guhathakurta M. M. Honkan

Chartered Accountants Chairman Director Wholetime Director

Firm Reg. No. 105335W DIN: 00019816 DIN: 10306595 DIN : 08392886

Deepak O. Narsaria P. S. Shah A. C. Chandarana

Partner Chief Financial Officer Company Secretary

Membership No. 121190 & President - Legal &Admn.

UDIN: 24121190BKBOTE9763

Mumbai, 29th May 2024 Mumbai, 29th May 2024

---

Mar 31, 2023

3.8 Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

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

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

3.9 Investment in subsidiaries

The Company has availed the optional exemption under Ind AS 101 and accordingly it has used the carrying value as at the date of transition i.e. 1st April 2016 as the deemed cost for investment in subsidiaries. The Company''s investment in instruments of subsidiaries are accounted for at cost less impairment loss if any.

3.10 Financial asset

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

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

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

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

3.10.2 Financial Assets at Fair value through Other Comprehensive Income (FVTOCI)

Financial assets at FVTOCI are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognized in Other Comprehensive Income.

3.10.3 Impairment of financial assets

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

For trade receivables or any contractual rights to receive cash or another financial assets that results from transactions that are within the scope of Ind AS 18, the Company always measures their allowances at an amount equal to lifetime expected credit losses.

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

3.10.4 Derecognition of financial assets

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

3.11 Foreign Exchange Transaction

Transactions in foreign currency are recorded at the standard exchange rates determined monthly. Monetary assets and liabilities denominated in foreign currency, remaining unsettled at the period end are re-stated at closing rates. The difference in translation of monetary assets and liabilities and realised gains and losses on foreign currency transactions (including those relating to acquisition of depreciable assets) is recognised in the Profit and Loss Account.

Foreign Exchange gain or loss on restatement of long term foreign currency borrowing is recognised in the profit and loss.

In the previous GAAP the Company has created Foreign Exchange Hedge Reserve and any foreign exchange gain or loss on restatement were transfer to this account and subsequently on actual realisation of exchange gain / loss, such amount is transfer to the profit and loss account. Under lnd-AS-21 -The effects in changes in foreign exchange rates, exchange gain / loss on such restatement of foreign currency loans needs to charge to profit and loss account. Accordingly on transition date i.e. 01/04/2016, debit balance in Hedge Reserve Account amounting to Rs. 3735.90 lakhs have been transferred to retained earnings.

3.12 Leases

The Company determines whether an arrangement contains a lease by assessing whether the fulfilment of a transaction is dependent on the use of a specific asset and whether the transaction conveys the right to use that asset to the Company in return for payment. Where this occurs, the arrangement is deemed to include a lease and is accounted for either as finance or operating lease. Leases are classified as finance leases where the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases Where Company is lessee

Operating lease - Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straightline basis over the lease term except where scheduled increase in rent compensates the Company with expected inflationary costs. Finance lease - Finance leases are capitalised at the commencement of lease, at the lower of the fair value of the property or the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the statement of profit and loss over the period of the lease.

Where Company is lessor

Assets acquired on leases where a significant portion of risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease rental are charged to statement of profit and loss on straight-line basis except where scheduled increase in rent compensate the lessor for expected inflationary costs.

3.13 Employee benefits The Defined benefit plan

The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligations is performed periodically by an independent qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Compnay, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements. Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses and the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in other comprehensive income (OCI). Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset). Net interest expense and other expenses related to defined benefit plans are recognised in Consolidated Statement of Profit and Loss. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in Consolidated Statement of Profit and Loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

3.14 Financial Liabilities

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

3.14.1 Financial liabilities at FVTPL

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

3.14.2 Financial liabilities subsequently measured at amortised cost

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

3.14.3 Derecognition of financial liabilities

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

3.15 Cash flow statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

3.16 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) aftertax by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for the events for bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares). Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares.

3.17 Segment Reporting

The Company is engaged in only one type of business i.e. charter of offshore support vessels. There are no separate reportable segments.

3.18 Critical accounting judgements and key sources of estimation uncertainty

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

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

4 Amendment to Existing issued Ind AS Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1st, 2022, as below:

Ind AS 103- Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 16 - Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ‘cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ‘10 percent'' test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements. Ind AS 106 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

New Standards / Amendments Notified but not yet Effective:

Ministry of Corporate Affairs (MCA), on March 31,2023 through the Companies (Indian Accounting Standards (Ind AS) Amendment Rules, 2023 amended certain existing Ind As’s with effect from April 01,2023. Following are few key amendments relevant to the Company Ind AS 1 - Presentation of Financial Statements & Ind AS 34 - Interim Financial Reporting - Material accounting policy information (including focus on how an entity applied the requirements of Ind AS) shall be disclosed instead of significant accounting policies as part of the financial statements.

Ind AS 107 - Financial Instruments: Disclosures - Information about the measurement basis for financial instruments shall be disclosed as part of material accounting policy information.

Ind AS 8 - Accounting policies, changes in accounting estimate and errors clarification on what constitutes an accounting estimate provided.

Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences.

The Company does not expect the effect of this on the financial statements to be material based on preliminary evaluation.

1. The non- current investments in unquoted equity shares of subsidiaries are stated at amortised cost less impairment if any.

2. The Company has made provision for diminution in value of investment for:

(i) Garware Offshore International Services Pte Ltd. due to negative net worth and future uncertainty in terms of operations.

(ii) Global Offshore Services B.V. in view of Company''s losses, as a matter of prudence.

3. The fair value of other investments (Non-current and Current) as at 31st March 2023 and 31st March 2022 have been arrived at on the basis of closing market price of the said quoted investments on a recognized stock exchange.

4. Company has not impaired any further amount of its investment in its Partly Owned Subsidiary, Global OFfshore Services B.V. (GOSBV) due to following reasons:

(i) As on 31st March 2023, M.V. Makalu, owned by a 100% subsidiary of GOSBV, was working on a long term contract.

(ii) The management of GOSBV is looking at the possibilty of, managing a fleet on Vessels on behalf of financial Investors.

(iii) GOSBV has recoveries from Charterers and has filed necessary claims for the same.

(iv) The Company is in discussion with Lenders to settle outstanding debts.

(A) Defined benefit plans

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

(a) Characteristics of defined benefit plan

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

(b) Risks associated with defined benefit plan

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

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

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

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments. Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

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

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

(c) Characteristics of defined benefit plans

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

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

28.1 As per the guidelines provided under Ind AS 101- first time adoption of Indian Accounting Standards , the Company has decided to change its accounting policy related to hedge accounting. Under Ind AS, the Company will follow Ind AS -21 - The effects of Changes in Foreign Exchange Rates, under which restated gain or loss on such foreign currency borrowing will be charged to profit and loss account for the respective period.

28.2 The Company has executed a settlement agreement with Phoenix ARC Private Ltd. Accordingly loan outstanding of Rs. 32,196 lakhs and interest outstanding of Rs. 9,300.04 lakhs has been written back during the year.

28.3 During the year, the Company sold 3 vessels. Accordingly a loss of Rs. 15,960.34 lakhs on the sale of vessels has been accounted. Major portion of the proceed from the sale of vessels has been used to reduced the outstanding payable to Phoenix ARC Pvt. Ltd.

28.4 Subsequent to balance sheet date, the Company has sold one vessel. The diffrence between the WDV as on 31st March 2023 and Net Sale value have been accounted as impairment loss of Rs. 4,174.66 lakhs,

28.5 During the year, the Company sold part of its office premises. Accordingly profit of Rs. 420.53 lakhs has been accounted. The proceed from sale of office premises have been used for repayment of the Working Capital Limits availed by the Company.

30C Financial and liquidity risk management objectives

The average payment terms of creditors (trade payables) is 90-120 days. Other financial liabilities viz. employee payments, other payables are payable as and when due.

30D Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The major class of financial asset of the Company is trade receivables. For credit exposures to customer, management assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. As the Company does not hold any collateral, the maximum exposure to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented on the statement of financial position.

30E Foreign Currency risk management

Since part of the revenues of the Company are denominated in US Dollars, there is a translation risk as the Company has to report its financial performance in INR. However, a small portion of the risk is “paired", as some of the Company’s operating costs are incurred in US dollars.

36 Other Statutory Information

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

ii. The Company does not have any transactions with companies that have been struck off.

iii. The Company has created charges in favour of an ARC which have “stepped into the shoes" of erstwhile lenders of the Company. The Company has filed satisfaction of Charges with MMD (Mercantile Marine Department) and ROC (Registrar of Companies), in respect of which dues are settled.

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

v. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vi. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

vii. The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

viii. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

37 The Company does not have any material significant impact due to Ind AS 116 - Leases, as all the lease arrangement are of short term nature with insignificant value.

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

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

For D. Kothary & Co. Aditya Garware A. K. Thanavala M. M. Honkan

Chartered Accountants Chairman Director Wholetime Director

Firm Reg. No. 105335W DIN: 00019816 DIN: 00017476 DIN : 08392886

Mehul N. Patel P. S. Shah A. C. Chandarana

Partner Chief Financial Officer Company Secretary

Membership No. 132650 & President - Legal & Admn.

UDIN: 23132650BGPYBH2510

Mumbai, 30th May 2023 Mumbai, 30th May 2023

---

Mar 31, 2018

4 Standards Issued but not Effective

On March 28, 2018,the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contract with Customers and certain amendment to existing Ind AS. These amendments shall be applicable to the Company from April 01, 2018.

(a) Issue of Ind AS 115 - Revenue from Contracts with Customers

Ind AS 115 will supersede the current revenue recognition guidance including Ind AS 18 Revenue, Ind AS 11 Construction Contracts and the related interpretations. Ind AS 115 provides a single model of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations.

(b) Amendment to Existing issued Ind AS

The MCA has also carried out amendments of the following accounting standards:

i Ind AS 21 - The Effects of Changes in Foreign Exchange Rates

ii Ind AS 40 - Investment Property

iii Ind AS 12 - Income Taxes

iv Ind AS 28 - Investments in Associates and Joint Ventures and

v Ind AS 112 - Disclosure of Interests in Other Entities

Application of above standards are not expected to have any significant impact on the Company''s Financial Statements.

1. The non- current investments in unquoted equity shares of subsidiaries are stated at amortized cost less impairment if any.

2. During the financial year ended 31st March 2018, the Company has made provision for diminution in value of investment for :

(i) Garware Offshore International Services Pte Ltd. due to negative net worth and future uncertainty in terms of profitability.

(ii) Global Offshore Services B.V. in view of Company''s losses, as a matter of prudence.

3. The fair value of other investments (Non-current and Current) as at 31st March 2018, 31st March 2017 and 1st April 2016 have been arrived at on the basis of closing market price of recognized stock exchange.

For the financial assets that are measured at amortized cost, the fair values are not materially different from their carrying amounts, since they are either of short term nature or interest receivable is close to current market rates.

Trade receivables are recognized at their original invoiced amounts which represent their fair values on initial recognition. Trade receivables are considered to be of short duration and are not discounted. The carrying values are equivalent to their fair values. All trade receivables are reviewed and assessed for default on a regular basis. Trade receivables are mainly from customers having high credit quality and strong financials. In determining the allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on historical credit loss experience and is adjusted for forward looking information. The Company has availed fund based working capital facilities by hypothecation of trade receivables.

The Company has provided for Rs. 1156.22 lakhs as Bad Debts. These are amounts receivable from the Company''s subsidiaries.

(i) Terms and Conditions

Four term loans are secured by way of first charge on the respective vessels (3 AHTSVs and 1 PSVs). Additionally, one of these loans is also secured by way of receivables, up to the limit of monthly principal and interest, of the vessel financed and by second charge on the Company''s office premises.

One term loan is secured by way of first charge on the vessel (AHTSV) financed and 2nd charge on a Platform Supply Vessel (PSV).

One term loan is secured by way of first charge on the vessel (PSV) financed and 2nd charge on a Anchor Handling Tug cum Supply Vessel (AHTSV).

(ii) Other Term Loans Foreign Currency Loans :

One Corporate loan is secured by way of receivables from the operations of one Anchor Handling Tug cum Supply Vessel to the extent of the monthly principal and interest and by extension of first charge on Company''s office premises. This loan has since been repaid (after the period under review).

(vi) Out of the Foreign Currency Term Loans (FCTL) for Acquisition / Modification of vessels, an amount of Rs. 32,247.46 lakhs is due to State Bank Of India (SBI). On account of the default in repayment of installment due and interest, SBI has treated the same as an Non Performing Assets w.e.f. 27th January, 2017. Subsequently, the bank has converted the FCTL''s into rupee loans and started charging higher rates of interest. The Company has not accepted the switchover of the loans into rupees and is continuing to provide interest as per the original terms.

Terms and Conditions

(i) Working Capital Facility granted by United Bank of India is secured by pari passu 1st charge with State Bank of India on stock of stores, spares, fuel on board the vessel (to the extent owned by the Company) and the book debts excluding receivable on one AHTS. All facilities provided by the United Bank of India are also secured by the 1st charge on the Company office premises. Interest on rupee based facility is charged @ 12.40% p.a and USD based facility @ 6month LIBOR 500 bps.

(ii) Working Capital Facility granted by State Bank of India is secured by pari passu 1st charge with United Bank of India on stock of stores, spares, fuel on board the vessel ( to the extent owned by the Company ) and the book debts excluding receivable on one AHTS. Interest on rupee based facility is charged @ 12.95% p.a and USD based facility @ 6 month LIBOR 400 bps. However, with the merger of State Bank of Tranvancore into State Bank of India, the working capital limits stands “frozen”, since the Company was declared an NPA with the Bank.

(iii) Unsecured Demand Loan facility from Axis Bank at an interest rate of 3 months LIBOR 450 bps p.a. The said loan has not been repaid till date, even though due.

*As per the information available with the Company, there are no Micro and Medium Enterprises, as defined in the Micro, Small, Medium Enterprise Development Act, 2006 to whom the Company owes on account of principal amount together with the interest and accordingly no additional disclosures are required.

Employee benefit plans 23A Defined contribution plans

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

23B (A) Defined benefit plans

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

(a) Characteristics of defined benefit plan

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

(b) Risks associated with defined benefit plan

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

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

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

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

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

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

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

(c) Characteristics of defined benefit plans

During the year, the Company has changed the benefit scheme in line with Payment of Gratuity Act, 1972 by increasing monetary ceiling from 10 lakhs to 20 lakhs, for those employees who are getting benefit as per Payment of Gratuity Act, 1972. Change in liability (if any) due to this scheme change is recognized as past service cost.

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

Note :

27.1 As per the guidelines provided under Ind AS 101- first time adoption of Indian Accounting Standards , the Company has decided to change its accounting policy related to hedge accounting. Under Ind AS, the Company will follow Ind AS -21-The effects of Changes in Foreign Exchange Rates, under which restated gain or loss on such foreign currency borrowing will be charged to profit and loss account for the respective period. On transition date i.e. 1 April, 2016, the debit balance in Foreign Currency Hedge Reserve has been transferred to Retained earnings.

The exceptional items includes credit for the year of Rs. 427.51 Lakhs ( Previous year Rs. 1369.05 Lakhs ).

27.2 The Company considers the probability of recovering loans and advances and receivables from the subsidiaries as extremely low, and has therefore provided for Rs. 1785.88 lakhs on account of loans and advances and Rs. 1156.22 lakhs on account of receivables. This is considered as an exceptional item in the standalone financial result.

27.3 In view of its losses and taking into consideration the future profitability of the business prospects of one Subsidiary of the Company. viz Garware Offshore International Singapore Pte Ltd., the Company, as a matter of prudence, has provided for an amount of Rs. 2273.58 lakhs towards the impairment in the value of the investment in equity of the said Subsidiary. This is considered as an exceptional item.

In view of the mounting losses and Net Worth getting eroded in the second subsidiary of the Company viz. Global Offshore Services B.V., the Company carried out the impairment testing of the investment based on the enterprise valuation of the business, (since majority of the vessels are working). As a prudent measure the Management decided to take a provision of 38% of equity invested, equivalent to Rs. 6851.47 lakhs towards the impairment of investment which is considered as an exceptional item.

27.4 The Company carried out the impairment testing of its own vessels based on discounted cash flow mechanism. The EV of the vessels is arrived on the basis of the discounting the projected cash flow. Accordingly, the Company has provided for an amount Rs. 410.24 lakhs towards the impairment in the value of the assets.

29 - Risk management

29A Capital risk management

The Company manages its capital to ensure that it will be able to continue as a going concern while making all efforts to maximize returns to stakeholders.

29B Financial instruments

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

The management considers that the carrying amount of financials assets & financial liabilities recognized in the financial statements are at approximately their fair values.

29C Financial and liquidity risk management objectives

The average payment terms of creditors (trade payables) is 45-60 days. Other financial liabilities viz. employee payments, other payables are payable within one year.

29D Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The major class of financial asset of the Company is trade receivables. For credit exposures to customer, management assesses the credit quality of the customer, taking into account its financial position, past experience and

other factors. As the Company does not hold any collateral, the maximum exposure to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented on the statement of financial position. 29E Foreign Currency risk management

Since the majority of the revenues of the Company are denominated in US dollars, there is a translation risk as the Company has to report its financial performance in INR. A significant part of this exposure is hedged by denominating most of its debt servicing obligations in U.S. Dollars and incurring some of its operating and repair costs in foreign currency. However, in view of non payment of some of its debts the natural hedge is now limited.

30 - Segment Information

The Company is engaged in only one type of business i.e. charter of offshore support vessels and there are no separate reportable segment.

34E Notes to first time adoption

(a) Fair valuation of investments

Investment in Garware Marine Industries Ltd is restated on 1st April 2016 (transition date) at fair value as against accounting at cost or market value (whichever is lower) under previous GAAP. This has resulted in decrease in investment by Rs. 17.59 lakhs as on 1st April 2016 and by Rs. 8.65 lakhs as on 31st March 2017 aggregating to decrease in investment by Rs. 26.24 lakhs as on 31st March 2017

(b) Fair valuation of security deposits

The Company has taken interest free security deposits from supplier. The interest free security deposits have been fair valued on the date of initial recognition and the difference between the transaction amount and the fair value has been recognized as deferred income. The security deposits have been subsequently amortized under effective interest rate method and the deferred income on a straight line basis over the term of the lease. This has resulted in recognizing deferred income of Rs.10.20 lakhs in other current liabilities. Also, security deposits have been reduced by Rs. 10.20 lakhs on the date of transition.

(c) Interest Cost on security deposits and unwinding of deferred income

The company has recognized interest cost of Rs. 1.63 lakhs on security deposit under the effective interest method and also to the same extent vessel hire income i.e. Rs. 1.63 lakhs accounted for the year ended 31st March 2017.

(d) Actuarial gain/loss

Under Ind AS, all actuarial gain and loss are recognized in other comprehensive income. Under previous GAAP the Company has recognized actuarial gains and losses in the statement of profit and loss amounting to Rs. 6.19 lakhs.

(e) Exceptional Items

As per Ind AS 101 An entity shall not reflect in its opening Ind AS Balance Sheet a hedging relationship of a type that does not qualify for hedge accounting in accordance with Ind AS 109

The Company transferred the foreign exchange gain/loss on restatement of long term foreign currency monetary items in Foreign Exchange Hedge Reserve under previous GAAP. Under Ind AS the entire balance in the Foreign Exchange Hedge Reserve has been transferred to Retained Earnings as on the date of transition.

The foreign exchange gain/loss on restatement of foreign currency monetary items recognized in Foreign Exchange Hedge Reserve under previous GAAP amounting to Rs. 1369.05 lakhs has been transferred to the Profit and Loss Account for the year ended 31st March 2017.

(f) Under Ind-AS-21 -The effects in changes in foreign exchange rates, exchange gain / loss on such restatement of foreign currency loans needs to charge to profit and loss account. Accordingly on transition date i.e. 01/04/2016, debit balance in Hedge Reserve Account amounting to Rs. 3735.90 lakhs have been transferred to retained earnings.

34F Adjustments to Statement of Cash flows

There were no material differences between the Statement of Cash Flows presented under Ind AS and the previous

GAAP.

---

Mar 31, 2016

Security:

1 Term loans for acquisition/modification of vessels

Four term loans are secured by way of first charge on the respective vessels ( 3 AHTSVs and 1 PSVs ). Additionally, one of these loans is also secured by way of receivables up to the limit of monthly principal and interest of the vessel financed and by second charge on Company’s office premises.

One term loan is secured by way of first charge on the respective vessel (AHTSV) and 2nd charge on a Platform Supply Vessel.

One term loan is secured by way of first charge on the respective vessel (PSV) and 2nd charge on a Anchor Handling Tug cum Supply Vessel.

2 Other Term Loans Foreign Currency Loans :

One Corporate loan is secured by way of receivables from the operations of one Anchor Handling Tug cum Supply Vessel to the extent of the monthly principal and interest and by extension of first charge on Company’s office premises.

3 Car Finance Loans

Car loans availed from banks are secured against respective motor cars against which the finances are availed.

4 Working Capital Facility from United Bank of India is secured by hypothecation of Tangible Assets such as stocks of stores and spares on board the vessel and book debts at an interest rate of 12.40% p.a.

5 Working Capital Facility from State Bank of Travancore is secured by pari passu first charge on all current assets including stores, spares and book debts at an interest rate of 12.95% p.a.

6 As per the information available with the Company, there are no Micro and Medium Enterprises, as defined in the Micro, Small, Medium Enterprise Development Act, 2006 to whom the Company owes on account of principal amount together with the interest and accordingly no additional disclosures are required.

B. Consequent to Schedule II of The Companies Act, 2013, becoming applicable with effect from April 01, 2014, depreciation for the year ended March 31, 2016, has been provided on the basis of the useful life and residual values as prescribed in Schedule II; except in case of certain types of assets where, based on past experience, the Company has adopted useful life and residual values other than those prescribed in Schedule II. In the case of the fleet, the Company has adopted useful life that is higher than prescribed in Schedule II, resulting in a lower charge of depreciation and in the case of motor cars it has adopted useful life that is lower than prescribed in Schedule II, resulting in higher charge of depreciation . The net impact of these changes is that the depreciation charge for the year ended is lower by Rs. 1,136.78 lacs.

C) Other Long Term Benefits

The charge recognized in the Profit & Loss Account for Leave Encashment for the year is Rs. 12.54 Lacs (Previous Year 29.83 Lacs) and the closing liability is Rs. 12.00 Lacs (Previous Year Rs. 10.79 Lacs)

Note :

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the Year.

The Company has given Guarantees of Rs. 38,221.08 lacs to Banks on behalf of its Subsidiaries for outstanding loans installments.

The Company has given Guarantees to Vessel Owners against the Bare Boat Charter of vessels by its subsidiary - the financial effect of which can not be determined/estimated.

H. Segment Reporting :

The Company is engaged in only one type of business i.e. charter of offshore support vessels and there are no separate reportable segment as per Accounting Standards AS-17 “Segment Reporting”.

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

---

Mar 31, 2014

A. Contingent Liabilities :

Particulars 31st March, 2014 31st March, 2013 Rs. In Lacs Rs. In Lacs

Guarantees given by the Banks 1,227.89 18,290.68 ( Counter Guarantees given by the Company)

Total 1,227.89 18,290.68

The Company has given Guarantees to Banks on behalf of its Subsidiary for outstanding installments of loans.

The Company has given Guarantees to Vessel Owners against the Bare Boat Charter of vessels by its subsidiary - the financial effect of which can not be determined/estimated.

B. Segment Reporting :

The Company is engaged in only one type of business i.e. charter of offshore support vessels and there are no separate reportable segment as per Accounting Standards AS-17 "Segment Reporting".

C. Garware Nylons Limited has been ordered to be wound up by the Bombay High Court and Bombay High Court has appointed Offi cial Liquidator on 18th December, 1998. During the year the value of investment of 35,050 equity shares valued at Rs.6.01 lacs has been written off in the books.

D. Previous year''s figures have been regrouped / reclassified, to correspond with the current year''s classifi cation / disclosure.

---

Mar 31, 2013

A) Other Long Term Benefi ts

The charge recognised in the Profi t & Loss Account for Leave Encashment for the year is Rs. 6.83 Lacs ( Previous Year 133.74 Lacs) and the closing liability is Rs. 16.77 Lacs ( Previous Year Rs. 30.71 Lacs )

B. Contingent Liabilities :

Particulars

For the Year Ended For the Year Ended 31st March, 2013 31st March, 2012 Rs. In Lacs Rs. In Lacs

Guarantees given by the Banks 18,290.68 2,006.41 (Counter Guarantees given by the Company)

Total 18,290.68 2,006.41

The Company has given Guarantees to Banks on behalf of its Subsidiary for outstanding installments of loa The Company has given Guarantees to Vessel Owners against the Bare Boat Charter of vessels by its subsidiary - the fi nancial effect of which cannot be determined/estimated.

C. Segment Reporting :

The Company is engaged in only one type of business i.e. charter of offshore support vessels and there are no separate reportable segment as per Accounting Standards AS-17 "Segment Reporting".

D. Garware Nylons Limited has been ordered to be wound up by the Bombay High Court and Bombay High Court has appointed Offi cial Liquidator on 18th December, 1998. No provision for diminution in the value of investment of 35,050 equity shares valued at Rs.6.01 lacs has been made in the books.

E. Previous year''s fi gures have been regrouped / reclassifi ed, to correspond with the current year''s.

---

Mar 31, 2012

Note No. 1 :

Share application money pending allotment

The Company had issued and allotted on a preferential basis 4,69,700 share warrants of Rs. 10/- each at issue price of Rs. 121/- per warrant (Including premium of Rs, 111/-). The same are to be converted into equity shares within 18 months from the date of allotment and have lock-in period of 3 years. Out of these 2,28,000 fully paid share warrants were converted into equity shares as per the terms of the issue. The Company has received Rs. 150.09 lacs against the issue price of Rs. 121/- in respect of balance 2,41,700 share warrants.

2.1 Term loans for acquisition of vessels

Six term loans are secured by way of first charge on the respective vessels (3 AHTSVs and 3 PSVs).

2.2 Other Term Loans

1. Foreign Currency Loans :

a. One Corporate term loan from a bank is secured by way of second charge on one vessel (AHTSV) of the Company.

b. Two Corporate term loans from a bank are secured by way of receivables from the operations of two vessels (PSV) of the Company respectively and extension of first charge on Company's office premises.

c. One Corporate term loan from a bank is secured by way of extention of second charge of one vessel (AHTSV) of the Company and second charge on Company's office premises.

2. Rupee Loans :

a. One Corporate Rupee term loan from a bank is secured by way of first charge on one vessel (AHTSV) of the Company.

b. One term loan from a bank for acquisition of office premises is secured by way of first charge of the said premises.

c. Overall limit from a bank is secured by way of extention of first charge on office premises.

2.3 Car Finance Loans

Car loans availed by the Company from banks are secured against respective motor cars against which the finances are availed.

3.1 Working Capital Facility from United Bank of India is secured by hypothecation of Book Debts and Tangible Assets such as stocks, stores and spares on board the vessel as also against collateral security by way of first mortgage on one AHTSV of the Company and extension of first charge on office premises.

3.2 Working Capital Facility from State Bank of Travancore is secured by pari passu first charge on all current assets including stores, spares and book debts ( excluding receivables from two of the Company's PSV).

4.1 As per the information available with the Company, there are no Micro and Medium Enterprises, as defined in the Micro, small, Medium Enterprise Development Act, 2006 to whom the Company owes on account of principal amount together with the interest and accordingly no additional disclosures have been made.

A. Related Party Disclosure

a) Subsidiary Companies

Garware Offshore International Services Pte. Ltd., Singapore ( Wholly Owned Subsidiary) Global Offshore Services B.V.,Netherlands ( Wholly Owned Subsidiary)

Other related parties with whom transactions have taken place during the year.

Key Management Personnel

Ashok B. Garware - Executive Chairman

Aditya A. Garware - Vice Chairman and Managing Director

(B) Other Long Term Benefits

The charge recognised in the Profit & Loss Account for Leave Encashment for the year is Rs. 133.74 Lacs ( Previous Year 7.86 Lacs) and the closing liability is Rs. 30.71 Lacs ( Previous Year Rs. 24.78 Lacs )

C. Contingent Liabilities :

31st March, 2012 31st March, 2011 Rs. In Lacs Rs. In Lacs

Guarantees given by the Banks 2,006.41 2,126.89 (Counter Guarantees given by the Company)

Total 2,006.41 2,126.89

The Company has given a guarantee on behalf of its wholly owned subsidiary for the difference, if any, between the Bareboat Charter payable to the owner of one Accommodation barge and one Anchor Handling T ug-cum Supply Vessel and the market value of the said assets. In view of the fact that the Accommodation barge is on long term contract, the Company expects no liability on this account. With regard to the Anchor Handling Tug-cum Supply Vessel, the same has now been acquired by Company's subsidiary in the Netherlands. Therefore the guarantee is no longer valid.

The Company has given a guarantee on behalf of its Wholly Owned Subsidiary based in Singapore for USD 35 million in favour of Northern Star Shipping Pte. Ltd., for the bareboat charter of one Platform Supply Vessel. This guarantee covers the difference between market value and the charter obligations of the Company's Wholly Owned Subsidiary. In view of the fact that the vessel is on long term contract and it's market value is substantially higher than the Bareboat charter exposure, the Company does not expect any liability whatsoever on this account.

The Company has given a guarantee of USD 55 million to Axis Bank, Singapore on behalf of Wholly Owned Subsidiary based in Netherlands. This amount relates to the debt raised by the Company's Wholly Owned Subsidiary in order to acquire the vessel, M.V.Beaucephalus. Since the market value of the vessel is substantially higher than the total debt outstanding and since the vessel is on long term contract with Petrobras, the Company does not expect any liability whatsoever on this account.

D. Segment Reporting :

The Company is engaged in only one type of business i.e. charter of offshore support vessels and there are no separate reportable segment as per Accounting Standards AS-17 "Segment Reporting".

E. Garware Nylons Limited has been ordered to be wound up by the Bombay High Court and Bombay High Court has appointed Official Liquidator on 18th December, 1998. No provision for diminution in the value of investment of 35,050 equity shares valued at Rs.6.01 lacs has been made in the books.

F. The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statement. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have accordingly been regrouped / reclassified, to correspond with the current year's classification / disclosure.

---

Mar 31, 2011

(1) The name of the Company was changed from Garware Offshore Services Limited to Global Offshore Services Limited w.e.f. 11th January, 2011.

(2) Contingent Liabilities :

Particulars As on 31st March, 2011 As on 31st March, 2010

(In Rs. Lacs) (In Rs. Lacs)

Guarantees given by the Banks

[Counter Guarantees given by the Company] 2,126.89 23,235.40

TOTAL 2,126.89 23,235.40

The Company has given a guarantee on behalf of its wholly owned subsidiary for the difference, if any, between the Bareboat Charter payable to the owner of one Accommodation barge and one Anchor Handling Tug-cum Supply Vessel, and the market value of the said assets. The company does not expect any liability on this account.

The Company has given a guarantee on behalf of its Wholly Owned Subsidiary based in Singapore for USD 75 million in favour of Northern Star Shipping Pte. Ltd., for the bareboat charter of one Platform Supply Vessel. This guarantee covers the difference between market value and the charter obligations of the Company's Wholly Owned Subsidiary. The Company does not expect any liability whatsoever on this account.

The Company has given a guarantee of USD 55 million to Axis Bank, Singapore on behalf of Wholly Owned Subsidiary based in Netherlands. This amount relates to the debt raised by the Company's Wholly Owned Subsidiary in order to acquire the vessel, M.V.Beaucephalus. Since the market value of the vessel is substantially higher than the total debt outstanding and since the vessel is on long term contract with Petrobras, Brazil, the Company does not expect any liability whatsoever on this account.

(3) Assets offered as securities to banks & financial institution :

A) Term loans for acquisition of vessels

(1) Outstanding loan of US$ 13.47 million from State Bank of India is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 1.47 million.

(2) Outstanding loan of US$ 14.06 million from State Bank of India is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 1.52 million.

(3) Outstanding loan of US$ 8.17 million from DVB Group Merchant Bank is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 0.92 million.

(4) Outstanding loan of US$ 7.71 million from DVB Group Merchant Bank is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 0.83 million.

(5) Outstanding loan of US$ 11.46 million from State Bank of India is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 0.96 million.

(6) Outstanding loan of US$ 16.39 million from DNB NOR Bank is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 1.64 million.

B) Other Term Loans

(1) Outstanding Corporate loan of US$ 1.69 million from State Bank of Travancore, is secured by way of second charge on one of the Company's AHTSV.

Amount repayable within a year US$ 0.93 million.

(2) Outstanding Corporate loan of US$ 1.10 million from State Bank of Travancore, is secured by way of first charge on one of the Company's AHTSV.

Amount repayable within a year US$ 1.10 million.

(3) Outstanding Corporate loan of US$ 3.87 million from State Bank of Travancore, is secured by way of extension of first charge on one of the Company's AHTSV, extension of second charge on one of the Company's AHTSV and extension of second charge on Office premises.

Amount repayable within a year US$ 0.73 million.

(4) Outstanding Corporate loan of US$ 2.22 million from State Bank of Travancore, is secured by way of extension of first charge on one of the Company's AHTSV, extension of second charge on one of the Company's AHTSV, extension of second charge on Office premises and exclusive charge on receivables from the operation of one of the Company's AHTSV.

Amount repayable within a year US$ 0.52 million.

(5) Outstanding Corporate loan of US$ 0.38 million from United Bank of India, which is secured by way of receivables from the operation of one of the Company's PSV and extension of charge on one of Company's AHTSV.

Amount repayable within a year US$ 0.38 million.

(6) Outstanding Corporate loan of US$ 1.62 million from United Bank of India, which is secured by way of receivables from the operation of one of the Company's PSV and extension of charge on one of Company's AHTSV.

Amount repayable within a year US$ 1.38 million.

(7) Outstanding loan of Rs. 539.13 lacs from United Bank of India, which is secured by way of charge on the property / office premises acquired as also charge on one of the AHTSV of the Company.

Amount repayable within a year Rs. 160.38 lacs.

(8) Outstanding loan of Rs. 312.53 lacs from Ratnakar Bank, which is secured by way of charge on one of the AHTSV of the Company.

Amount repayable within a year Rs. 125.00 lacs.

C) Car Finance Loans

Car ioans availed by the Company from ICICI Bank are secured against respective motor cars against which the finances are availed.

Amount repayable within a year Rs. 9.03 lacs.

D) Working Capital Facilities

(!) Working Capital Facility from United Bank of India is secured by hypothecation of Book Debts and Tangible Assets such as stocks, stores and spares on board the vessel as also against collateral security by way of first mortgage on one AHTSV of the Company. Part of this facility is now denominated in US$.

(2) Working Capital Facility from State Bank of Travancore is secured by pari passu first charge on all current assets including stores & spares, fuel, oil and book debts ( Excluding receivables from two of the Company's PSV). Part of this facility is now denominated in US$.

(C) Other Long Term Benefits

The charge recognised in the Profit & Loss Account for Leave Encashment for the year is Rs. 7.86 Lacs ( Previous Year 12.81 Lacs) and the closing liability is Rs. 24.78 Lacs ( Previous Year Rs. 24.87 Lacs )

(5) Current Liabilities :

As per the information available with the Company, there are no Micro and Medium Enterprises, as defined in the Micro small, Medium Enterprise Development Act 2006 to whom the Company owes on account of principal amount together with the interest and accordingly no additional disclosures have been made.

(6) Amount Due from wholly owned subsidiaries :

Garware Offshore International Services Pte. Ltd.

Sundry Debtors - Rs. 106.34 Lacs, (previous year Rs. 1,116.88 Lacs.)

Advances - Rs. 0.44 lacs (Previous year Rs. 0.45 lacs )

Global Offshore Services B. V.

Sundry Debtors - Rs. 6.21 Lacs (Previous year Nil )

(7) Garware Nylons Limited has been ordered to be wound up by the Bombay High Court and Bombay High Court has appointed Official Liquidator on 18th December, 1998. No provision for diminution in the value of investment of 35,050 equity shares valued at Rs.6.01 lacs has been made in the books.

(12) Related Party Disclosure :

a) List of Related Parties :

Subsidiary Companies

Garware Offshore International Services Pte. Ltd, Singapore

Global Offshore Services B.V.,Netherlands

Other related parties with whom transactions have taken place during the year,

Key Management Personnel

Ashok B. Garware - Executive Chairman

Aditya A. Garware - Vice Chairman and Managing Director

(13) The previous year figures have been regrouped whenever necessary to confirm to current years classification.

(14) Segment Reporting :

The Company is engaged in only one type of business i.e. charter of offshore support vessels and there are no separate reportable segment as per Accounting Standards AS-17 "Segment Reporting".

---

Mar 31, 2010

(1) Contingent Liabilities :

Particulars As on 31st March, 2010 As on 31st March, 2009 (In Rs. Lacs) (In Rs. Lacs)

(a) Guarantees given by the Banks [Counter Guarantees given by the Company] 23,235.40 1,906.60

(b) Corporate Guarantee on behalf of other Company [No such guarantee has devolved on the Company] 0.00 232.84

TOTAL 23,235.40 2,139.44

The Company has given a guarantee on behalf of its wholly owned subsidiary for the difference, if any, between the Bareboat Charter payable to the owner of one Accommodation barge and one Anchor Handling Tug-cum Supply Vessel, and the market value of the said assets. The company does not expect any liability on this account.

(2) Assets offered as securities to banks & financial institution :

A) Term loans for acquisition of vessels

(a) Outstanding term loan of US $ 14.94 million from State Bank of India is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 1.47 million.

(b) Outstanding term loan of US $ 15.58 million from State Bank of India is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 1.52 million.

(c) Outstanding term loan of US $ 9.25 million from DVB Group Merchant Bank is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 1.23 million.

(d) Outstanding term loan of US $ 20.23 million from DVB Group Merchant Bank is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 1.99 million.

(e) Outstanding term loan of US $ 8.80 million from DVB Group Merchant Bank is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 1.11 million.

(f) Outstanding term loan of US $ 12.18 million from State Bank of India is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 0.72 million.

(g) Outstanding term loan of US $ 8.22 million from State Bank of Hyderabad is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 0.98 million.

(h) Outstanding term loan of US $ 8.38 million from State Bank of India is secured by way of first charge of the vessel acquired.

Amount repayable within a year US$ 1.00 million.

B) Other Term Loans

(a) Outstanding Corporate Term loan of US$ 2.70 million from State Bank of Travancore, is secured by way of second charge on one of the Companys AHTSV.

Amount repayable within a year US$ 1.01 million.

(b) Outstanding Corporate Term loan of US$ 2.00 million from State Bank of Travancore, is secured by way of first charge on one of the Companys AHTSV.

Amount repayable within a year US$ 0.90 million.

(c) Outstanding Corporate Term loan of US$ 1.88 million from United Bank of India, which is secured by way of receivables from the operation of one of the Companys PSV and extension of charge on one of Companys AHTSV.

Amount repayable within a year US$ 1.50 million.

(d) Outstanding Corporate Term loan of US$ 3.00 million from United Bank of India, which is secured by way of receivables from the operation of one of the Companys PSV and extension of charge on one of Companys AHTSV.

Amount repayable within a year US$ 1.38 million.

(e) Outstanding term loan of Rs. 728.67 lacs from United Bank of India, which is secured by way of charge on the property / office premises acquired as also charge on one of the AHTSV of the Company.

Amount repayable within a year Rs. 174.96 lacs.

(f) Outstanding term loan of Rs. 437.53 lacs from Ratnakar Bank, which is secured by way of charge on one of the AHTSV of the Company.

Amount repayable within a year Rs. 125.00 lacs.

C) Car Finance Loans

Car finances availed by the Company from ICICI Bank is secured against respective motor cars against which the finances are availed.

Amount repayable within a year Rs. 15.15 lacs.

D) Working Capital Facilities

(a) Working Capital Facility from United Bank of India is secured by hypothecation of Book Debts and Tangible Assets such as stocks, stores and spares on board the vessel as also against collateral security by way of first mortgage on one AHTSV of the Company.

(b) Working Capital Facility from State Bank of Travancore is secured by pari passu first charge on all current assets including stores & spares, fuel, oil and book debts ( Excluding receivables from one of the Companys PSV).

(C) Other Long Term Benefits

The charge recognised in the Profit & Loss Account for Leave Encashment for the year is Rs. 12.81 Lacs (Previous Year 56.00 Lacs) and the closing liability is Rs. 24.87 Lacs (Previous Year Rs. 27.33 Lacs)

(3) Change In Accounting Policy :

During the current year the company changed its policy for providing for Depreciation on the assets (other than on fleet). Hitherto depreciation had been provided on the written down value method at the rates and in the maner specified in Schedule XIV to the Companies Act 1956. From the current year, on all assets (other than fleet) acquired from 1 st January, 2004 onwards depreciation has been provided on the straight line method as under :

(i) On Motor Vehicles - At 25% p.a.

(ii) On Residual Assets - At the SLM rates provided under Schedule XIV of Companies Act 1956.

As a consequence of this change a net amount of Rs. 27.21 Lacs has been charged to the current year Profit and Loss Account, being the additional depreciation to be provided upto 31st March, 2009 to give effect to this change.

(4) Capital Commitment :

Estimated amount of contracts remaining to be executed on account of capital expenses is Rs. 27,290.00 Lacs, against which an advance of Rs. 1,763.28 Lacs has been paid.

(5) Current Liabilities :

As per the information available with the Company, there are no Micro and Medium Enterprises, as defined in the Micro small, Medium Enterprise Development Act 2006 to whom the Company owes on account of principal amount together with the interest and accordingly no additional disclosures have been made.

(6) Amount Due from a wholly owned subsidiary :

(a) Sundry Debtors includes Rs. 1,116.88 Lacs (previous year Rs. 642.09 Lacs)

(b) Short term loan Rs. 1,109.12 Lacs (previous year Rs. 0.45 Lacs)

(7) Garware Nylons Limited has been ordered to be wound up by the Bombay High Court and Bombay High Court has appointed Official Liquidator on 18th December, 1998. No provision for diminution in the value of investment of 35,050 equity shares valued at Rs. 6.01 Lacs has been made in the books.

(8) Related Party Disclosure :

a) List of Related Parties :

Subsidiary Companies

Garware Offshore International Services Pte. Ltd, Singapore

Other related parties with whom transactions have taken place during the year.

Key Management Personnel

Ashok B. Garware - Executive Chairman

Aditya A. Garware - Vice Chairman and Managing Director

(9) The previous year figures have been regrouped whenever ncecessary to confirm to current years classification.

(10) Segment Reporting :

The Company is engaged in only one type of business i.e. charter of offshore support vessels and there are no separate reportable segment as per Accounting Standards AS-17 "Segment Reporting".