Notes to Accounts of Shahi Shipping Ltd.

Mar 31, 2024

c) Rights, entitlement and obligations of different classes of equity shares:

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. Each shareholder is eligible for one vote per share held.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

d) Buy Back of shares or shares allotted by way of bonus shares:

The Company has not made any buy-back, nor there has been an issue of shares by way of bonus share nor issue of share pursuant to contract without payment being received / paid in cash for the period of five years immediately preceding the balance sheet date.

Note 1 * Working Capital Loan taken from State Bank of India is secured by principal security of hypothecation charge on the company’s entire receivables and collateral security of : 1) extension of mortgage on the registered office premises 2) Exclusive 1st charge over vessels of the company i.e. M.V Royal Gandak, MV Krishna, MV Royal Gomati by way of hypothecation 3) Personal guarantee of chairman & Managing Director.

Note 2 This loan taken under Gauranteed Emergancy Credit Line scheme. As per scheme it is to augument net working capital, meet operation liabilities, restart business and overcome the stress faced by business due to covid-19 crisis. Tenor of the loan is 60 months including moratorium of 24 months. Repayment will be in 36 eqaul monthly installments of Rs. 372222.22 with first installment commencing in July 2024 and last installment falling due in June 2027.

Basic EPS amounts are calculated by dividing the profit for the year attributable to shareholders by the weighted average number of shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to shareholders by the weighted average number of shares outstanding during the year plus the weighted average number of shares that would be issued on conversion of all the dilutive potential shares into share capital.

30 Commitments and contingencies

a) a) On account of guarantees executed by the company''s bankers for Rs. 51.13 Lakhs ( FY 22-23: 41.13 lakhs), which is partly secured by the Margin Money amounting to Rs. 36.18 lakhs (FY 22-23: Rs. 17.69 lakhs) retained by the Bank.

b) t here is ongoing appeal for service Tax for FY 2009-2017 amounting to Rs. 1093.49 lakhs (for Various issues) with Appellate Tribunal, and for FY 2017-18 GST appeal is filled with Deputy commissioner for dispute in Input Tax Credit amount is 14.13 Lakhs.

Based on management''s best estimate and basis expert opinion obtained by the Company, no provisions have been made for above claims during the year. The Company will continue to monitor developments to identify significant uncertainties and change in estimates, if any, in future period.

31 Related Party Disclosures

In accordance with the requirements of IND AS 24, on related party disclosures, name of the related party, related party relationship, transactions and outstanding balances including commitments where control exists and with whom transactions have taken place during reported periods, are:

I The other current assets in Note No. 8 includes Rs. 645.23 lacs of interest subsidy receivable from Central Government Inland Waterways Authority. To recover the same the petition is pending before the Allahabad High Court. The amount outstanding is considered good by the management..

II In the opinion of the Board, Current Assets, Loans, Advances and Deposit have a value on realisation in the ordinary course of the business at least equal to the amount at which they are stated in the balance sheet.

III The company is engaged only in the business of shipping and as such there is no separate reportable segment as per

Indian Accounting Standard 108.

IV The company has not identified amount payable to Micro,Small and Medium Enterprise, as defined in the Micro, Small, Medium Enterprises 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.

The above information regarding Micro, Small and Medium Enterprises, has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

V Company has not earned any income in foreign exchnage

VI Company has average loss in past three years. So Corporate Social Responsibility as per section 135 of Companies

Act, 2013 not applicable.

VII The Company does not have any 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).

a) Fair value for financial investments are valued using Net Assets Methods as per the latest available balance sheets of the investee companies.

B Measurement of fair values

“The section explains the judgement and estimates made in determining the fair values of the financial instruments that are:

a) recognised and measured at fair value

b) measured at amortised cost and for which fair values are disclosed in the financial statements.”

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level is mentioned below:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

TTransfers between Level 1, Level 2 and Level 3

There were no transfers between Level 1, Level 2 or Level 3 during the year ended 31 March 2024 and 31 March 2023. Determination of fair values

Fair values of financial assets and liabilities have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

i) The fair value of mutual funds are based on price quotations at reporting date.

ii) The fair values of other current financial assets and financial liabilities are considered to be equivalent to their carrying values.

34 Financial instruments - risk management

The Company has exposure to the following risks arising from financial instruments: credit risk (refer note (b) below); liquidity

risk (refer note (c) below); market risk (refer note (d) below).

(a) Risk management framework

The Company''s board of directors (hereinafter referred to as "the Board") has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Board oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Board is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the Board.

(b) Credit risk

(i) Credit risk is the risk of financial loss to the Company, if a customer to a financial instrument fails to meet its contractual obligations. Company''s exposure to credit risk primarily arises on account of its Trade receivables. Trade receivables consist of a large number of customers spread across diverse geographical areas. A default on a trade receivable is considered when the customer fails to make contractual payments within the credit period. This credit period has been determined by considering the business environment in which the Company operates. The Company considers dealing with creditworthy customers and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The credit risk due to above is periodically monitored.

(ii) Provision for expected credit losses : The Company provides for expected credit loss on trade receivables. The model uses historical credit loss experience for trade receivables i.e. this model uses aging analysis of trade receivables as at the reporting date and is based on the number of days that a trade receivables is past due. The ageing has been done for bracket of last 3 years. Further, customers declaring bankruptcy or failing to engage in repayment plan with the Company, 100% provisioning is made i.e. such customers do not form part of this impairment exercise and provided for separately.

ii) Cash and cash equivalents

The Company holds cash and cash equivalents of Rs. 36.40 lacs at 31 March 2024 (31 March 2023: Rs.36.69 lacs). The cash and cash equivalents are mainly held with banks which are highly regulated. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings of counterparties..

iii) Other financial assets

The Company considers that its other financial assets which mainly represents unbilled revenue with its tenants and have low credit risk based on its nature and other security available.

(c) Liquidity risk

i) Prudent liquidity risk management refers to the management of the Company''s short term and long term funding and liquidity management requirements. The Company’s treasury maintains flexibility in funding by maintaining availability of funds under committed credit lines. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

ii) (ii) Maturities of financial liabilities

The tables below analyse the Company’s non-derivative financial liabilities into relevant maturity groupings based on their contractual maturities.

(C) Market risk

Market risk is the risk that changes in market indicators such foreign exchange rates, interest rates and commodity prices will affect the Company’s income or the value of its financial instruments. The Company’s activities mainly expose it to risks arising from changes in freight/charter hire rates.

(i) Freight/Charter hire risk

(a) Foreign currency risk exposure:

Shipping industry is governed by various national and international economic and geopolitical developments. Local and international demand and supply determine freight and charter hire rates.

Fair value sensitivity for fixed-rate instrument

‘The company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Hence, there is no exposure as at the reporting date to the statement of profit or loss.

(iii) Price risk

Price risk is the risk of fluctuations in the values of assets and liabilities as a result of changes in the market price of investments. The Company has no material exposure to equity securities price risk and is not exposed to commodity price risk.

35 Capital management

The Company''s objectives when managing capital are to safeguard the Company''s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The Company monitors capital on the basis of the debt equity ratio. This ratio is calculated as debt divided by total equity. Debt is calculated as Long Term Borrowings (including current portion of Long Term borrowings as shown in the Balance Sheet).

The Company''s adjusted net debt to equity ratio is analysed as follows:

36 Employee Benefit Plans

The Company provides the Group Gratuity Scheme under defined benefit plans for qualifying employees. The gratuity is payable to all eligible employee on retirement , subject to completion of five years of the continuous employee, death or termination of employee that is based on last drawn salary and tenure of employment. Liabilities in gratuity plan are determined by actuarial valuation on the balance sheet date.

39 Additional regulatory information required by Schedule III of Companies Act, 20131 Details of Benami property:

No proceedings have been initiated or are pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

2 Utilisation of borrowed funds and share premium:

A) 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.

B) 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 Group shall:

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

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

3 Compliance with number of layers of companies:

The company has complied with the number of layers prescribed under the Companies Act, 2013.

4 Compliance with approved scheme(s) of arrangements:

The company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

5 Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

6 Details of crypto currency or virtual currency:

The company has not traded or invested in crypto currency or virtual currency during the current or previous year

7 Valuation of Property,Plant and Equipment :

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

8 Willful Defaulter :

The company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium there of or other lender inaccordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

9 Details of Transaction with Struck of Companies :

The Company has not identified transaction with struck off companies

40 Approval of Financial Statement

The Financial Statements have been approved by the Board of Directors at their Meeting held on May 21, 2024.

41 Previous Year Figures

The figures of previous year have been regrouped or rearranged wherever necessary to conform to current year’s presentation as per Schedule III (Division II) to the Companies Act 2013.

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Mar 31, 2017

1. Contingent liability not provided for:

2. On account of guarantees executed by the company’s Bankers for Rs. 312.64 lacs (previous year Rs.178.83 lacs), which is partly secured by the Margin Money amounting to Rs. 52.60 lacs (previous year Rs. 19.35 lacs) retained by the Bank.

3. Claim against the Company not acknowledged as debts Rs.30.37 Lacs (previous year Rs. 30.37 lacs)

4. Debtors include Rs. 22.67 lacs (Previous year Rs. 22.67 lacs) in respect of cases which are under arbitration/ dispute. In the opinion of the management they said debts are considered good.

5. The other current assets in Note No.16 includes Rs. 645.23 lacs (Previous year Rs. 645.23 lacs) of interest subsidy receivable from Central Government Inland Waterways Authority. To recover the same the petition is pending before the Allahabad High Court. The amount outstanding is considered good by the management,

6. During the year, the company had Specified Bank Notes (SBNs) or other denomination notes as defined in the MCA notification, G.S.R. 308 (E), dated March 30, 2017. The details of SBNs held and transacted during the period from November 8, 2016 to December 30, 2016, the denomination - wise SBNs and other notes as per the notification are as follows:

7. In the opinion of the Board, Current Assets, Loans, Advances and Deposit have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

8. The company is engaged only in the business of shipping and as such there is no separate reportable segment as per Accounting Standard 17.

9. There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises 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.

The above information regarding Micro, Small and Medium Enterprises, has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

10. The company’s two Subsidiary Company namely SKS Waterways Ltd and Royal Logistics (Ship) Ltd has not yet started operation hence the consolidated financial statement of the Shahi Shipping Limited and its subsidiaries SKS Waterways Ltd & Royal Logistics (Ship) Ltd has not been prepared.

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Mar 31, 2015

NOTE 1 : SHARE CAPITAL

(a) Terms / Rights - Equity Shares

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of Equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Payment of dividend is also made in foreign currency to shareholders outside India.

NOTE NO-2 OTHER NOTES TO ACCOUNTS

I. Contingent liability not provided for:

(a) On account of guarantees executed by the company's Bankers for Rs. 155.99 lacs (previous year Rs. 110.33 lacs), which is partly secured by the Margin Money amounting to Rs. 17.15 lacs (previous year Rs. 11.18 lacs) retained by the Bank.

(b) (i) Rs. 240.12 Lacs (Previous Year Rs. 240.12 Lacs) in respect of Appeal Orders passed in favour of Company

by the Commissioner of Income Tax (Appeal) and by Income Tax appelate Tribunal , the Income Tax Department has prefer appeals against the above said orders before the High Court.

(ii) Claim against the Company not acknowledged as debts Rs. 30.37 Lacs (previous year Rs. 30.37 lacs)

II. Debtors include Rs. 22.67 lacs (Previous year Rs. 22.67 lacs) in respect of cases which are under arbitration/ dispute. In the opinion of the management the said debts are considered good.

III. The other current assets in Note No.16 includes Rs. 645.23 lacs (Previous year Rs. 645.23 lacs) of interest subsidy receivable from Central Government Inland Waterways Authority. To recover the same the petition is pending before the Allahabad High Court. The amount outstanding is considered good by the management,

IV. The Company is in the process of restructuring its Dena Bank 3(Three) Term Loans outstanding as on 31/03/2015 principal sum of Rs. 530.32 lacs (Previous Year Rs. 486.35 Lacs) and interest sum of Rs. 169.08 lacs (Previous Year Rs. 132.98 Lacs) , to reduce the interest burden and improve the financial condition of the Company. Accordingly the company has approached to Dena Bank who have advanced above stated loans to the Company to restructure / reschedule the above stated loans in line with expected cash flow to enable the Company to service them appropriately. However the Company has made the interest provision sum of Rs. 169.08 lacs (Previous Year Rs. 132.98 Lacs) on above stated term loans up to 31/03/2015

V. In the opinion of the Board, Current Assets, Loans, Advances and Deposit have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

VI. The company is engaged only in the business of shipping and as such there is no separate reportable segment as per Accounting Standard 17.

VII. There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises 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.

The above information regarding Micro, Small and Medium Enterprises, has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

VIII. The company's two Subsidiary Company namely SKS Waterways Ltd and Royal Logistics (Ship) Ltd has not yet started operation hence the consolidated financial statement of the Shahi Shipping Limited and its subsidiaries SKS Waterways Ltd & Royal Logistics (Ship) Ltd has not been prepared.

IX. There was no impairment loss on fixed assets on the basis of review carried out by the management in accordance with the Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

X. Pursuant to the enactment of the Companies Act, 2013 ("the Act") and its applicability for the accounting periods commencing on or after 1, April 2014, the Company has reviewed and revised the useful lifes of Fixed Assets as prescribed in PART-C of Schedule II of the Act. Accordingly where the remaining useful life of an fixed asset have expired as at 1st April, 2014, the carrying amount of those assets amounting to Rs. 7.93 lacs (net of deferred tax Rs. 3.79 Lacs) has been adjusted in the opening balance of Profit & Loss Account after retaining the residual value of those assets. As a result of this for the year ended 31st march 2015 the depreciation charge is higher by Rs. 116.48 Lacs and so Loss has been increased to that extent.

XI. Employee Benefit Expenses Note 19 includes Managerial Remuneration to (i) the Chairman & Managing Director amounting to Rs.42 Lacs and sum of Rs. 1.80 Lacs Employer's Contribution to Provided Fund . The Members had approved the remuneration as per Ordinary Resolution passed in the Extra Ordinary General Meeting held on 14/02/2015 . (ii) the Whole Time Director for the period from April 2014 to August 2014 amounts to Rs. 126452/-, whose reappointment was recommended by the Board of Directors in the Meeting held on 12/02/2014 which was subject to the approval in the ensuing Annual General Meeting. The members at the said Annual General Meeting did not approve the Special Resolution of above said reappointment of Whole Time Director.

XII. Prior period expenses debited during the year is Rs. 0.99 Lacs. (previous year was Rs. 11.38 Lacs).

XIII. Previous year's figures have been regrouped and rearranged wherever necessary to confirm to those of the current year.

XIV. Related parties Disclosures:

Description of relationship Names of related parties

Where Control Exists India First Logistics Limited

Shahi Gasol Limited

Royal Logstics (Ship) Ltd.

SKS Waterways Ltd.

Key Management Personnel and Relatives Mr.S.K Shahi

Chairman & Managing Director

Mrs.Anjana Shahi

Relative of Mr.S.K.Shahi

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Mar 31, 2014

1. SHARE CAPITAL

a) Equity Shares Issued for consideration other than cash

Out of total Issued, Subscribed & Paid Up Equity Shares, 72,47,437 Equity shares of Rs.10/- each was alloted as fully paid-up bonus shares by capitalisation of General Reserve

b) Terms/Rights - Equity Shares

The Company has only one class of shares referred to as equity shares having a par value of Rs.10/- per share. Each holder of Equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Payment of dividend is also made in foreign currency to shareholders outside India.

2. DEFERRED TAX LIABILITY (NET)

* Working Capital Borrowings repayable on demand is secured by principal security of hypothecation of Book Debts & collateral security of: 1) extension of mortgage on the Registered Office Premises 2) Exclusive 1st charge over specific barges of the company by way of mortgage/hypothecation.

3. NON CURRENT INVESTMENT

All the above Investments are intended to be held on a long term basis and have been classified accordingly.

4. CONTINGENT LIABILITY NOT PROVIDED FOR

I. (a) On account of guarantees executed by the company''s Bankers for Rs. 110.33 lacs (previous year Rs. 74.28 lacs), which is partly secured by the Margin Money amounting to Rs. 11.18 lacs (previous year Rs. 7.50 lacs) retained by the Bank.

(b) Claim against the Company not acknowledged as debts Rs. 30.37 Lacs (previous year Rs. 30.37 lacs).

(c) Rs. 240.12 Lacs in respect of Appeal Orders passed in favour of Company by the Commissioner of Income Tax (Appeal) and by Income Tax appelate Tribunal ,the Income Tax Deprtment has prefer appeals against the above said orders before the High Court and Rs. 686.85 Lacs demand in respect of Income Tax against which Compnay has prefer appeal before the Commissioner of Income Tax (Appeal) (previous Year : NIL)

(d) Demand in respect of ESI Contribution dispited in Industrial Court sum of Rs. 83.62 lacs (Previous Year : Rs. 83.62 lacs).

II. Debtors include Rs. 22.67 lacs (Previous year Rs. 22.67 lacs) in respect of cases which are under arbitration/ dispute. In the opinion of the management the said debts are considered good.

III. The other current assets in Note No.18 includes Rs. 645.23 lacs (Previous year Rs. 645.23 lacs) of interest subsidy receivable from Central Government Inland Waterways Authority. To recover the same the petition is pending before the Allahabad High Court. The amount outstanding is considered good by the management,

IV. The Company is in the process of restructuring its Dena Bank 3 (Three) Term Loans outstanding as on 31/03/2014 principal sum of Rs. 486.35 lacs and interest sum of Rs. 132.98 lacs, to reduce the interest burden and improve the financial condition of the Company. Accordingly the company has approached to Dena Bank who have advanced above stated loans to the Company to restructure/reschedule the above stated loans in line with expected cash flow to enable the Company to service them appropriately. However the Company has made the interest provision sum of Rs. 132.98 lacs on above stated term loans up to 31/03/2014

V. Trade receivable, Trade Payable, Loans, Advances & Deposit Taken, Loan, Advances & Deposit given are subject to confirmation.

VI. In the opinion of the Board, Current Assets, Loans, Advances and Deposit have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

VII. The company is engaged only in the business of shipping and as such there is no separate reportable segment as per Accounting Standard 17.

VIII. There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises 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.

The above information regarding Micro, Small and Medium Enterprises, has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

IX. The company''s two Subsidiary Company namely SKS Waterways Ltd and Royal Logistics (Ship) Ltd has not yet started operation. Shahi Shipping (BD) Ltd, is in the process of liquidation, hence the consolidated financial statement of the SKS Logistics Limited and its subsidiaries SKS Waterways Ltd, Royal Logistics (Ship) Ltd and Shahi Shipping (BD) Ltd has not been prepared.

X. There was no impairment loss on fixed assets on the basis of review carried out by the management in accordance with the Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

XI. Prior period expenses debited during the year was Rs. 11.38 lacs (previous year was Rs. 2.65 Lacs).

XII. Previous year''s figures have been regrouped and rearranged wherever necessary to confirm to those of the current year.

XIII. Related parties Disclosures

Description of relationship Names of related parties

(a) Where Control Exists Shahi Shipping (BD) Limited

India First Logistics Limited

Shahi Gasol Limited

SKS Shipyard Pvt. Ltd

Royal Logstics (Ship) Ltd.

SKS Waterways Ltd.

(b) Key Management Personnel Mr.S.K Shahi and Relatives Chairman & Managing Director

Mrs.Anjana Shahi

Relative of Mr.S.K.Shahi

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Mar 31, 2013

I Contingent liability not provided for:

(a) On account of guarantees executed by the company''s Bankers for Rs. 74.28 lacs (previous year Rs. 169.87 lacs), which is partly secured by the Margin Money amounting to Rs. 7.50 lacs (previous year Rs. 20.00 lacs) retained by the Bank.

(b) Claim against the Company not acknowledged as debts Rs.30.37 Lacs (previous year Rs. 30.37 lacs)

(c) Demand in respect of additional ESI Contribution dispited in Industrial Court sum of Rs. 83.62 lacs and the industrial court has granted stay to the company. (Previous Year: NIL)

II Debtors include Rs. 22.67 lacs (Previous year Rs. 22.67 lacs) in respect''of cases which are under arbitration/ dispute. In the opinion of the management the said debts are considered good. .,

III The other current assets in Note No.18 includes Rs. 645.23 lacs (Previous year Rs. 645.23 lacs) of interest subsidy receivable from Central Government Inland Waterways Authority. To recover the same the petition is pending before the Delhi High Court. The amount outstanding is considered good by the management,

IV The company had lodged a claim for Rs. 396.23 lacs in the Financial Year 2009-10, in respect of main engine break down of a ship during the voyage. The salvage expenses of Rs. 321.58 lacs, which has been incurred on account of above has been shown in the books of accounts in other current assets till 31.03.2012. During the current year, the said claim has been settled by the insurance company by making the full and final payment of Rs. 34.25 lacs, As per Company accounting policy the insurance cliam are accounted on cash basis.Accordingly, the above said insurance claim which has been settled and received during the year has been credited to above stated Salvage Expenses and reaming balance amount sum of Rs. 287.33 lacs has been charge to Profits Loss a/c under the head Salvage Expenses.

V As per representation received from the Management o''f the Company, the Other Current Liabilities Note No.9 includes the sum of Rs. 21.68 lacs outstanding dues to Bank subject to reconsilation.

VI Trade receivable, Trade Payable, Loans, Advances & Deposit Taken, Loan, Advances & Deposit given are subject to confirmation.

VII In the opinion of the Board, Current Assets, Loans, Advances and Deposit have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

VIII The company is engaged only in the business of shipping and as such there is no separate reportable segment as per Accounting Standard 17.

IX There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises 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.

The above information regarding Micro, Small and Medium Enterprises, has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

X The company''s two Joint Venture Company namely SKS Waterways Ltd and Royal Logistics (Ship) Ltd has not yet started operation. Shahi Shipping (BD) Ltd, is in the process of liquidation, hence the consolidated financial statement of the SKS Logistics Limited and its subsidiaries SKS Waterways Ltd, Royal Logistics (Ship) Ltd and Shahi Shipping (BD) Ltd has not been prepared.

XI There was no impairment loss on fixed assets on the basis of review carried out by the management in accordance with the Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

XII Prior period expenses debited during the year was 2.65 lacs (previous year was Rs. 2.61 Lacs).

XIII Previous year''s figures have been regrouped and rearranged wherever necessary to confirm to those of the current year.

XIV Related parties Disclosures:

Description of relationship Names of related parties

(a) Where Contror Exists . Shahi Shipping (BD) Limited

India First Logistics Limited Shahi Gasol Limited SKS Shipyard Pyt. Ltd Royal Logstics (Ship) Ltd. SKS Waterways Ltd.

(b) Key Management Personnel and Relatives Mr.S.K Shahi

Chairman & Managing Director Mrs. Anjana Shahi Relative of Mr.S.K.Shahi

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Mar 31, 2012

(a) Equity Shares issued for consideration other then cash

Out of total issued, Subscribed & Paid Up Equity Shares, 72,47,437 Equity shares of Rs.10/- each were ailoted as fully paid-up bonus shares by capitalisation of General Reserve

(b) Terms / Rights - Equity Shares

The Company has only one class o* shares referred to as equity shares having a par value of Rs.10/- per share. Each holder of Equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Payment of dividend is also made in foreign currency to shareholders outside India. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Terms of Borrowing and other details

a. Repayable in quartely 28 equal installments, Last Installment falling due 30th June 2013,Interest Rate 12.50%) Term Loan is Secured by hypothecation on vessels Hugali, Mahanadi, Sewaree, Saraswati And Vishal Laxmi, Gandak & Book debts and personal guarantee of director.

b. Repayable in quarterly 20 equal installments,Last Installment falling due 15th Feb 2013 .Interest Rate 12.25% Term loan is secured by hypothecation on vessels of the Company and personal guarantee of director.

c. Repayable in quarterly 16 installment, Last Installment falling due on 1st April 2014, Interest Rate 13.25%. Overdue Installment of interest sum of Rs.12,19,880/- exist as on 31-03-2012.

Term loans is secured by hypothecation on vessels Amba, Yamuna, Tapi, Godavari, Petrol, Sharavati, Priyabandhu And personal guarantee of director.

d. Repayable in quarterly 16 equal installments , Last Installment falling due 30th June 2012 .Interest Rate 14.00%. Overdue Installment of loan sum of Rs. 3,10,17,336/- and interest sum of Rs. 11,98,939/- exist as on 31-03-2012.

Term loans are secured by hypothecation on Office Premises & R Kali, Vikrant & Gomati and personal guarantee of director.

e. Repayable in monthly 44 equal installments , Last Installment falling due 1st March 2014 .Interest Rate 14.00%. Overdue Installment of loan sum of Rs. 3,52,201/- and interest sum of Rs. 1,31,799/- exist as on 31-03-2012

Term loan are secured by hypothecation on Office Premises and personal guarantee of director.

f. Repayble in quartely 28 equal installments, Last Installment falling due 1st Sept 2013 .Interest Rate 14.75%. Overdue interest sum of Rs. 6,13,833/- exist as on 31-03-2012.

Term Loan is Secured by hypothecation on vessals Hugali, Mahanadi, Sewaree, Saraswati And Vishal Laxmi, Gandhak & Book debts.

g. Repayble in quartely 20 equal installments , Last Installment falling due 1st Sept 2013 .Interest Rate 14.75%. Overdue interest sum of Rs. 12,74,788/- exist as on 31-03-2012.

Term Loan is Secured by hypothecation on vessel :mgali, Mahanadi, Sewaree, Saraswati And Vishal Laxmi, Gandhak & Book debts.

h. Repayble in quartely 30 equal installmentsLast Installment falling due 30th June 2016 .Interest Rate 14.75%

Term Loan is Secured by hypothecation on vessals Hugali, Mahanadi, Sewaree, Saraswati And Vishal Laxmi, Gandhak & Book debts

i. Repayble in monthly 60 equal installments Last Instalment falling due 7th Aug 2016 .Interest Rate 12.50%.

j. Repayble in monthly 60 equal installments, Last ih.s.-JIment falling aue 15th Aug 2015 .Interest Rate 10.05%. k. Repayble in monthly 84 equal installments,Last li bailment falling due 1st March 2019, Interest Rate 12.00%.

I. Repayble in monthly 48 equal installments,Last installment falling due 11th April 2012 .Interest Rate 10.50%

* Working Capital Borrowings repayable on demand is secured by principal security of hypothecation of Book Debts & collateral security of: 1) extension of mortgage on the Registered Office Premises 2) Exclusive 1st charge over 5 vessels of the company by way of mortgage/hypothecation, valued at Rs. 1000 lacs, namely: a) M V Vishalaksmi b) D B Mahanadi c) M V Royal Gandak d) Royal Sewree e) Royal Saraswati.

Note: The Board of Directors has recommended dividend Rs. 0.10 per equity share of Rs. 10/- each on 1,44,94,874 equity shares for the year ended 31st March 2012 (Previous year Rs. 0.50 per equity share of Rs. 10 each on 1,44,94,874 equity shares)

I Contingent liability not provided for:

(a) On account of guarantees executed by the company's Bankers for Rs. 169.87 lacs (previous year Rs. 258.43 lacs), which is partly secured by the Margin Money amounting to Rs. 20.00 lacs (previous year Rs. 99.46 lacs) retained by the Bank.

(b) Claim against the Company not acknowledged as debts ^ 30.37 Lacs (previous year Rs. 30.37 lacs)

II Debtors include Rs. 22.67 lacs (Previous year Rs. 22.67 lacs) in respect of cases which are under arbitration/ dispute. In the opinion of the management the said debts are considered good.

III The other current assets in Note No. 18 includes Rs. 645.23 lacs (Previous year Rs. 645.23 lacs) of interest subsidy receivable from Central Government Inland Waterways Authority. To recover the same the petition is pending before the Delhi High Court. The amount outstanding is considered good by the management,

IV The company has lodged the claim of sum of Rs. 396.23 lacs in the Financial Year 2009-10, in respect of main engine break down of a ship during the voyage. The salvage expenses sum of Rs. 316.58 (Previous year 316.58lacs) which has been incurred on account of above has been included in the other current assets in Note No. 18 . As per Company accounting policy the insurance claim are accounted on cash basis, the above said insurance claim has not been received hence not recorded in the books of accounts. The amount outstanding is considered good by the management.

V Trade receivable, Trade Payable, Loans, Advances & Deposit Taken, Loan, Advances & Deposit given are subject to confirmation.

VI In the opinion of the Board, Current Assets, Loans, Advances and Deposit have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

VII The company is engaged only in the business of shipping and as such there is no separate reportable segment as per Accounting Standard 17.

VIII There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises 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.

The above information regarding Micro, Small and Medium Enterprises, has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

IX The company's two Subsidiary Companies namely SKS Waterways Ltd and Royal Logistics (Ship) Ltd have not yet started operations. Shahi Shipping (BD) Ltd, is in the process of liquidation, hence the consolidated financial statement of the SKS Logistics Limited and its subsidiaries SKS Waterways Ltd, Royal Logistics (Ship) Ltd and Shahi Shipping (BD) Ltd has not been prepared.

X There was no impairment loss on fixed assets on the basis of review carried out by the management in accordance with the Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

XI Prior period expenses debited during the year was Rs. 2.61 lacs (previous year was Rs. 18.38 Lacs).

XII The remunaration committee has approved the remunaration of shri Sarvesh Kumar Shahi Chairman & Managing Director a sum of Rs 3.50 lacs per month with effect from 1st April 2011. The Company will seek the approval of the shareholder of the Company by way of a special resolution in the ensuring Annual General Meeting for the aforesaid remunaration paid by it to its Chairman & Managing Director.

XIII Till the year ended 31st March 2011,the Company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the companies Act 1956, has become applicable to the company. The company has reclassified previous year figures to confirm to this year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.

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Mar 31, 2010

1. Contingent liability not provided for:

a) On account of guarantees executed by the companys Bankers for Rs. 108.15 lacs (previous year Rs. 73.90 lacs), which is partly secured by the Margin Money amounting to Rs. 16.28 lacs (previous year Rs. 11.15 lacs) retained by the Bank.

b) Claim against the Company not acknowledged as debts Rs. 30.37 lacs.

c) Demand in respect of additional Income Tax disputed in Appeal Rs. NIL ( Previous year 146.16 lacs ).

2. Debtors include Rs. 22.67 lacs (Previous year Rs. 22.67 lacs) in respect of cases which are under arbitration/ dispute. In the opinion of the management the said debts are considered good.

3. On account of being a shipping company, details in connection with Para 3 of Part II of Schedule VI of the Companies Act, 1956 have not been given.

4. The other current assets in schedule 9 includes Rs. 645.23 lacs (Previous year Rs. 645.23 lacs) of interest subsidy receivable from Central Government Inland Waterways Authority. The Company to recover there dues has filed a petition in the Delhi High Court in May 2010. The amount outstanding is considered good by the management,

5. The company has lodged the claim of sum of Rs 396.23 lacs in respect of main engine break down of a ship during the voyage. The salvage expenses sum of Rs 312.10 lacs which has been incurred on account of above has been shown in the books of accounts in Loan & Advances. As per Company accounting policy the insurance claim are accounted on cash basis, the above said insurance claim has not been received hence not recorded in the books of accounts.

6. The Sundry Debtors, Sundry Creditors, Loans, Deposits and Loans & Advances are subject to confirmation/ reconciliation.

7. In the opinion of the Board, Current Assets, Loan and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

8. The company is engaged only in the business of shipping and as such there is no separate reportable segment as per Accounting Standard 17.

9. (a) Sundry Creditors include amounts due to small scale Industrial undertakings - Rs. 6076 /-(previous year Rs. 50,333 ).

(b) There were no party being small scale /ancillary industrial undertaking to whom amount exceeding Rs. 100,000/- is outstanding for more than 30 days but not overdue.

(c) There were no amounts overdue to Small Scale and/or Ancilliary Industrial suppliers on account of principal and / or interest as at the close of the year.

(d) The above disclosure is based on the information/ documents available with the company.

10. The company has formed two Subsidiary Company to namely SKS Waterways Ltd and Royal Logistics (Ship) Ltd which has not been started operation during the year. Shahi Shipping (BD) Ltd, in the process of liquidation, hence the consolidated financial statement of the SKS Logistics Limited and its subsidiaries SKS Waterways Ltd, Royal Logistics (Ship) Ltd and Shahi Shipping (BD) Ltd has not been prepared. SKS Logistics (Singapore) Pvt Ltd has been wound up during the year.

11. Previous years figures have been regrouped and rearranged wherever necessary to confirm to those of the current year.

As in the past years the accumulated credit balance in the Deferred Tax Account has been shown under the head "Reserves & Surplus ", as in the opinion of the management the liability for deferred tax does not exist on the date of the Balance Sheet.

12. There was no impairment loss on fixed assets on the basis of review carried out by the management in accordance with the Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

13. Prior period expenses debited during the year was 2.93 lacs (previous year was Rs. NIL).

14. Related Party Disclosures :

RELATED PARTY RELATIONSHIPS:

a) Where control exists:

Shahi Shipping (BD) Limited

India First Logistics Limited

Shahi Gasol Limited

SKS Shipyard Pvt.Ltd.

Royal Logistics ( Ship ) Ltd.

SKS Waterways Ltd

b) Key Management Personnel:

Mr. S. K. Shahi

Chairman & Managing Director

Late Mr. F. M. Koli

Wholetime Director

c) Other Related Parties:

Aryan Transport Company Pvt Ltd.

Royal Cruise Liners Limited

Koli Finance Pvt. Limited