Notes to Accounts of Shipping Corporation of India Land And Assets Ltd.

Mar 31, 2025

a) Pursuant to demerger scheme, the shares of the joint venture of SAIL SCI Shipping Company Pvt. Ltd. (SSSPL) are transferred to the company. The said joint venture was incorporated on 19.05.2010 with an authorised share capital of '' 1000 lakhs. (Refer Note 38)

b) The Government of India in meeting of cabinet held on 02.04.2013 approved the proposal for dissolution of Irano-Hind Shipping Co. (PJ.S) (IHSC) and splitting the assets/liabilities of IHSC between Joint Venture partners shall be undertaken. Pursuant to demerger scheme, the Company holds 49% in IHSC, a joint venture company incorporated in Iran on which sanction has been imposed by United Nations Organisation (UN). Substantive efforts are made to eventually dissolve the JV which is depending on geo political environment and sanctions imposed by UN. The company shall remain committed by the decision of cabinet. However Legal transfer of shares and advance from SCI to SCILAL is pending

Non-recurring fair value measurements

Investments classified as held for sale during the reporting period is measured at the lower of its carrying amount and fair value less costs to sell at the time of the reclassification, resulting in the recognition of a write down of '' 42 lakhs as impairment loss in the statement of Capital Reserve at the time of demerger while '' 7 lakhs being recognised as impairment loss through P&L Account in FY 2024-25

d) For the period of five years immediately preceding the date as at which the Balance Sheet is prepared, no shares have been issued for consideration other than cash, no shares have been issued as bonus shares & no shares have been bought back. However the shares were allotted to shareholders of SCI on record date i.e 31.03.2023 as per the demerger scheme.

e) Rights/Preference/Restriction attached to Equity Shares:

The Company has only one class of Equity shares having par value of '' 10. Each shareholder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the company after distribution of all preferential allotment in proportion to their shareholding. The dividend whenever proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Nature and Purpose of other reserves

Capital Reserve: The balance amount of net assets as per the scheme of demerger after issue of equity share capital as received from SCI. This is not available for distribution of dividend but can be utilised for issuing bonus shares.

Retained Earnings: Retained Earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders except '' 2,31,857 (lakhs) representing upward valuation of MTI Land.

General Reserve: General Reserve represents appropriation of retained earnings and are available for distribution to shareholders.

(e) 1. The CMD of the company hold the position of Chairman and Managing Director in The Shipping Corporation of India

2. The Director (Operations) of the company hold the position of Director (P&A) in The Shipping Corporation of India

3. The Director (Finance) of SCI hold the position of Director (Finance) in the company till 23.02.2025 Note 30: Segment information

(a) Business Segments

The Company is managed by the Board which is the chief decision maker. The Board has determined the operating segments for the purposes of allocating resources and assessing performance.

(I) MTI - MTI segment includes Maritime Training Institute.

(II) Others - Others segment includes Investment property and surplus funds received pursuant to demerger.

(b) Geographical Segments

Presently, the Company''s operations are confined in India.

(c) Earnings before Interest & Tax (EBIT)

Adjusted EBIT excludes discontinued operations and the effects of significant items of income and expenditure which may have an impact on the quality of earnings such as restructuring costs, impairments when the impairment is the result of an isolated, non-recurring event. It also excludes the effects of gains or losses on financial instruments.

The carrying amounts of trade receivables, trade payables, short term security deposits, bank deposits with more than 12 months maturity, cash and cash equivalents including other bank balances and other current financial assets and liabilities are considered to be the same as their fair values. Hence the current financial assets & liabilities have not been considered for Fair value hierarchy above.

Note 34: Financial risk management

The Company has exposure to the Credit risk, Liquidity risk and Market risk. The Board of Directors of the Company holds overall responsibility for the establishment, implementation, and supervision of the Company’s risk management framework. In the absence of a Risk Management Committee and Audit Committee, the Board itself discharges all related functions. The Company has a Risk Management Policy duly approved by the Board, and risk registers are maintained in accordance with this policy. These risk registers, also approved by the Board, are reviewed periodically to ensure effective identification, assessment, and mitigation of risks faced by the Company.

(A) 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. 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. Based on the periodical analyses, the credit risk is managed by continuous review and follow-up.

(ii) Provision for expected credit losses (ECL):

The Company does not provide for expected credit loss on trade receivables. Further, customers failing to engage in payment plan with the Company, provisioning is made on case to case basis i.e. such customers do not form part of this impairment exercise and provided for separately.

(B) 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. Based on the service agreement between SCI and SCILAL, SCI''s treasury maintains flexibility in funding by maintaining availability of funds. Company manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(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 as interest rates 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 foreign exchange rate and interest rates.

(i) Foreign currency risk

The company has a laibility received under demerger towards Irano Hind Shipping Company which is denominated in a currency that is not the Company''s functional currency (INR).

Note 40

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

The accompanying note no. 1 to 40 are an integral part of these Standalone Financial Statements.

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Mar 31, 2024

2.10 Provisions and Contingent Liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or reliable estimate of the amount cannot be made is treated as contingent liability.

2.11 Revenue Recognition

Revenue Income is recognised in the Statement of Profit and Loss when:

• The income generating activities have been carried out on the basis of a binding agreement

• The income can be measured reliably

• It is probable that the economic benefits associated with the transaction will flow to the Company

• Costs relating to the transaction can be measured reliably

Revenue for all businesses is recognised when the performance obligation has been satisfied, which happens upon the transfer of control to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for the goods and services.

Revenue is recognised when or as performance obligations are satisfied by transferring the promised goods or services to the customer, i.e. at a point in time or over time provided that the stage of completion can be measured reliably.

Interest income - Interest income consists of interest on Surplus Funds received from SCI under scheme of arrangement. The interest income is recognised as it accrues in the statement of profit and loss.

2.12 Insurance Claims

The Insurance claims made by the Company are recognized on acceptance by the underwriters.

2.13 Leases

A contract or parts of contracts that conveys the right to control the use of an identified asset for a period of time in exchange for payments to be made to the owners (lessors) are accounted for as leases. Contracts are assessed to determine whether a contract is, or contains, a lease at the inception of a contract or when the terms and conditions of a contract are significantly changed.

Where the Company is the lessee in a lease arrangement at inception, the lease contracts are recognized as rights-of use assets and lease liabilities are measured at present value of lease payments at initial recognition except for short-term leases and leases of low value. The rights of use assets are depreciated on a straight line basis over a lease term. Lease payments are discounted using the interest rate implicit in the lease. If that rate is not readily available, the incremental borrowing rate is applied. The incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a similar economic environment. Payments associated with short-term leases and leases of low-value assets are recognised as an expense in Profit & Loss Account.

2.14 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating Diluted Earnings per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

2.15 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Note 38

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

The accompanying note no. 1 to 38 are an integral part of these Standalone Financial Statements.

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

For JKJS & CO. LLP Sd/- Sd/-

Chartered Accountants Mr. Mohammad Firoz Ms. Laxmi Kamath

ICAI Regn. No. 121161W/ W100195 Company Secretary Chief Financial Officer

Sd/- Sd/- Sd/-

CA Nirmal Kumar Khetan Mr. Atul Ubale Capt. B. K.Tyagi

Partner, M No. 044687 Director (Finance) Chairman & Managing Director

UDIN:24044687BKFGFL4536 DIN -08630613 DIN - 08966904

Mumbai Dated: 29.04.2024 Mumbai Dated: 29.04.2024