Shipping Corporation of India Ltd Auditor Reports

To The Members of

The Shipping Corporation of India Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of The Shipping Corporation of India Limited (“the Company”), which comprise the Balance Sheet as at 31.03.2026, the Statement of Pro t and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the Standalone Financial Statements including a summary of signi cant accounting policies and other explanatory information (hereinafter referred to as “Standalone Financial Statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”), and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31.03.2026, its pro t (including other comprehensive income), changes in equity and its cash ows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with Standards on Auditing (SAs) speci ed under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and Rules made thereunder, and we have ful lled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is suf cient and appropriate to provide a basis for our opinion on the Standalone Financial Statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most signi cance in our audit of the Standalone Financial Statements of the current year. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

The direct access of certain overseas foreign agents to fund collected on account of freight and other charges.	We assessed the Companys process to evaluate Agents on timely basis to identify the impact on the revenue and collection of funds.
Liner division of the Company has been carrying out its vessels operations and container marketing activities at various ports in India and abroad through its agency network. Agents perform various activities such as marketing, booking, clearing of cargo, port calls of vessels & also collection of freight on behalf of the Company. The Company depends on its agents for operation of Liner segment business.	? The Company has obtained bank guarantee from major agents & also reviewed the same periodically to con rm its validity and completeness with respect to risk exposure on revenue due to direct access to agents.
Since all the activities are performed by the agents, there is requirement of funds. Collection of income is done directly by agents and subsequently remitted to the Company. Therefore, it involves a risk on the part of the Company and hence is identified as a Key Audit Matter.	? The Company has provided Statement of Account (SOA) obtained from these foreign agents for confirmation of transactions and closing balance.
Evaluation of Dry Docking Cost, Repair Expenses and remaining useful life of Vessels:-	To assess the recognition of dry docking cost, its useful life & repair cost, we performed the following procedure:
As per Ind AS 16 Property, Plant and Equipment, subsequent costs like expenditure on major maintenance re ts or repairs including planned dry-dock are included in the assets carrying amount or recognized as a separate asset, as appropriate, when they meet the recognition criteria, i.e., only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.	? Evaluated the design of internal controls relating to the major cost like repairs & dry-docking which are of two types i.e. planned dry-dock & emergency dry-dock.
A shipping company on periodic basis is required to bring all ships into dry dock for major inspection and overhaul. Overhaul expenditure might at first sight seem to be a repair to the ships but it is actually a cost incurred in getting the ship back into seaworthy condition.	? Selected a sample to verify the operating effectiveness of the internal control, relating to identi cation of the distinction between the two cost i.e. repair & dry-dock cost.
The dry-docking cost and repairs expenses of vessels are considered as Key Audit Matter as it requires management judgment to assess future economic benefits from the expenditure incurred and the measurement of the cost.	? Tested the relevant information technology systems relating to the dry-dock & Fleet related expenses.
	? Tested the useful life of dry-docking of vessels based on the assessment by management and statutory requirement on dry docking.
Provisions for taxes and Contingent Liabilities	Our audit procedure in response to this key Audit Matter inter-alia included:
The Company is involved in various taxes and other disputes for which nal outcomes cannot be easily predicted and which could potentially result in significant liabilities. The assessment of the risks associated with the litigations is based on complex assumptions, which require the use of judgment and such judgment relates, primarily, to the assessment of the uncertainties connected to the prediction of the outcome of the proceedings and to the adequacy of the disclosures in the financial statements.	? Assessment of the process and relevant controls implemented to identify legal and tax litigations, and pending administrative proceedings.
Because of the judgment required, the materiality of such litigations and the complexity of the assessment process, this is identified as a Key Audit Matter. (Refer Note no 27 to the Standalone Financial Statements regarding disclosure of contingent liabilities)	? Assessment of assumptions used in the evaluation of potential legal and tax risks performed by the legal and tax department of the Company considering the legal precedence and other rulings in similar cases.
	? Inquiry with the legal and tax departments personnel regarding the status of the most significant disputes and perusal of the key relevant documentation.
	? Analysis of opinion obtained by the Company from external experts, wherever available.
	? Review of the adequacy of the disclosures in the notes to the financial statements.
	? We have observed that the provision for tax estimated as above including the deferred tax, has not resulted in material deviation from the applicable rate of tax after considering the exemptions, deductions and disallowances as per the provisions of the Income Tax Act.

Emphasis of Matter

We draw attention to the following matters in the notes to the Standalone Financial Statements:

1. Note No. 40 regarding present geopolitical escalation in Middle East and restricted maritime movement through the Strait of Hormuz and few vessels of the company are awaiting clearance for transit. As stated in the said note company does not expect any material impact of the same.

2. Note No. 42 regarding selection of the Company for Strategic Disinvestment process by the Government of India. The disinvestment process and the procedural aspects in relation to the same are in progress.

3. a) Note No. 43 (a) regarding the practice of seeking balance con rmations in respect of Trade receivables, Trade payables and Deposits, the process of reconciliation and the managements assertion that it would not have any material difference affecting the nancial statements.

b) Note No. 43 (b) regarding reconciliation of agent/vendor/customer balances and its consequential impact on foreign exchange gain/loss including the accuracy of the exchange gain / loss accounted on revaluation of balances. As stated in the referred note by management, the impact of the same would not be material.

c) Note No. 44 regarding reconciliation of tax assets as per books of accounts and corresponding tax returns and assessment orders. As stated in the said note the impact of the same would not be material.

Our opinion is not modi ed in respect of above matters.

Other Information

The Companys Board of Directors are responsible for the other information. The other information comprises the information included in the Directors Report including Annexures to Directors Report, Business Responsibility Report, Corporate Governance and Shareholders Information, but does not include the Standalone Financial Statements, and our auditors report thereon. The Annual report/Boards report is expected to be made available to us after the date of this auditors report.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the other information, If we conclude that there is a material misstatement therein, we are required to communicate the matters to those charged with governance and determine the actions under the applicable laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Companys Management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the nancial position, nancial performance (including other comprehensive income), changes in equity and cash ows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal nancial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Companys nancial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to in uence the economic decisions of users taken on the basis of this Standalone Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suf cient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(I) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal nancial controls with reference to nancial statements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signi cant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be in uenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identi ed misstatements in the Standalone Financial Statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signi cant audit ndings, including any signi cant de ciencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most signi cance in the audit of the Standalone Financial Statements of the current year and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest bene ts of such communication.

Report on Other Legal and Regulatory Requirements

(1) As required by the Companies (Auditors Report) Order, 2020 (“the Order”) issued by the Central Government of India in terms of section 143(11) of the Act, we give in “Annexure 1”, a statement on the matters speci ed in paragraphs 3 and 4 of the Order, to the extent applicable.

(2) As required by section 143(3) of the Act, we report that:

a. We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

c. The Balance Sheet, the Statement of Pro t and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this report are in agreement with the books of account;

d. In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS speci ed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended;

e. In our opinion and to the best of our information and according to the explanations given to us, the Company being a Government Company, section 164(2) related to disquali cations for appointment of directors is not applicable to it in accordance with exceptions, modi cations and adaptations provided vide Noti cation No. G.S.R. 463 (E) dated June 5, 2015 issued by Ministry of Corporate Affairs (the “Noti cation”).

f. With respect to the adequacy of the internal nancial controls with reference to Standalone Financial Statements of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure 2”;

g. With respect to the other matter to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Act:

In our opinion and to the best of our information and according to the explanations given to us, the Company being a Government Company, section 197 of the Act related to the managerial remuneration is not applicable to it in accordance with exceptions, modi cations and adaptations provided vide the Noti cation referred earlier under clause (e) above.

h. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its nancial position in its Standalone Financial Statements Refer Note 27 to the Standalone Financial Statements;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;

iii. There were no amounts, which were required to be transferred to the Investor Education and Protection Fund by the Company.

iv. (a) The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identi ed in any manner whatsoever by or on behalf of the Company ("Ultimate Bene ciaries") or provide any guarantee, security or the like on behalf of the Ultimate Bene ciaries;

(b) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identi ed in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Bene ciaries") or provide any guarantee, security or the like on behalf of the Ultimate Bene ciaries; and

(c) In our opinion and based on the audit procedures, we have considered reasonable and appropriate in the circumstances; nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.

v. As stated in Note 39 to the standalone nancial statements - The dividend declared or paid during the year by the Company is in compliance with section 123 of the Companies Act, 2013.

vi. Based on our examination which included test checks, except for instances mentioned below the company has used an accounting software (SAP and other interfacing functional softwares such as DANAOS and Afsys) for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software.

Edit logs are not being generated properly with all details from interfacing functional software from November 2025 to March 2026.

Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with and the audit trail has been preserved by the company as per the statutory requirements for record retention except as stated above.

(3) Pursuant to the requirement under Section 143(5) of the Act, applicable in case of a Government Company, we give in the “Annexure 3” a statement containing our comments on the matters speci ed in the directions and additional directions issued by of ce of the Comptroller and Auditor General of India to be reported in respect of the Company.

ANNEXURE 1 TO THE INDEPENDENT AUDITORS REPORT

[Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements in the Independent Auditors Report of even date to the members of the company on the Standalone Financial Statements for the year ended 31.03.2026]

Based on the audit procedures performed for the purpose of reporting a true and fair view on the Standalone Financial Statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:

(i) (a) As per the information and explanations given to us,

(A) the Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment and relevant details of Right of Use assets.

(B) the Company has maintained proper records showing full particulars of intangible assets;

(b) As per the information and explanations given to us, the Property, Plant and Equipment have been physically veri ed by the management at reasonable intervals. According to information and explanations given to us, company has a policy to physically verify Property, plant and Equipment except eets in every three years, basis on which the latest physical veri cation was carried out during the nancial year 2024-25 by an independent third party.

(c) According to the information and explanation given to us and on the basis of our examination of records of the Company the title deeds of immovable properties recorded as xed assets [Right of Use (ROU) Assets] in the books of account of the Company are held in the name of the Company. During FY 2022-23, pursuant to the MCAs approval of the Demerger Scheme on 22.02.2023, non-core assets have been transferred by the Company to The Shipping Corporation of India Land and Assets Limited. These transferred assets inter-alia included certain immovable properties for which title deeds were not available in the name of company as on the date of transfer.

(d) As per the information and explanations given to us, the Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year. Accordingly reporting under clause 3 (i) (d) of the Order is not applicable to the Company.

(e) As per the information and explanations given to us, 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 rules made thereunder. Accordingly reporting under clause 3 (i) (e) of the Order is not applicable to the Company.

(ii) (a) The inventory has been physically veri ed by the management during the year. In our opinion, the frequency of veri cation is reasonable and the coverage and procedure of such veri cation by the management is adequate. In our opinion, the Company is maintaining proper records and no material discrepancies were noticed on physical veri cation of inventory during the year.

(b) In our opinion and according to the information and explanation given to us, during the year under consideration, the Company has not availed any unsecured working capital limits in excess of ve crore rupees from Banks. Therefore, reporting under this clause of the Order is not applicable to the Company.

(iii) The Company has made investments in, provided guarantee or security or granted loans or advances in the nature of loans, secured or unsecured, to companies, rms, Limited Liability Partnerships or any other parties as per details mentioned below:

DETAILS OF GUARANTEE, SECURITY, LOAN AND ADVANCES IN NATURE OF LOANS

(Amount Rs. in lakhs)

Particulars	Guarantees	Security	Loans	Advances in nature of loans
Aggregate amount granted/ provided during the year:
- Subsidiaries	Nil	Nil	66.00	Nil
- Joint Ventures	Nil	Nil	Nil	Nil
- Associates	Nil	Nil	Nil	Nil
- Others	Nil	Nil	268.50	Nil
Balance outstanding as at balance sheet date in respect of above cases:
- Subsidiaries	Nil	Nil	404.37	Nil
- Joint Ventures	6,779.80	Nil	22,123.41	Nil
- Associates	Nil	Niltd>	Nil	Nil
- Others	Nil	Nil	2588.38	Nil

b. The investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in nature of loans and guarantees provided are not prejudicial to the companys interest. c. In our opinion and according to the information and explanations given to us, in respect of loans no schedule of repayment of principal has been stipulated as the loans are repayable on demand. In respect of the loan granted to a joint venture, the terms for payment of interest are stipulated; however the receipt of such interest is irregular. d. In our opinion and according to the information and explanations given to us, the interest on the loan given to Joint Venture (ILT-3) was overdue for more than ninety days as detailed below.

S.No.	Overdue Amount		Due Date	Receipt Date	Delay in Days
	USD	INR
1.	4,41,340	378,97,127	31-03-2025	30-06-2025	91
2.	3,27,959	280,60,000	30-06-2025	30-09-2025	92
3.	2,43,110	215,78,557	30-09-2025	30-12-2025	91

The entire overdue interest amount was recovered in 30.12.2025. e. In our opinion and according to the information and explanation given to us, the Company has not granted any loan or advance in the nature of loan granted which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same parties. f. The Company has granted loans either repayable on demand or without specifying any terms or period of repayments, details for which have been mentioned below

(Amount in lakhs)

	All Parties	Promoters	Related Parties
Particulars			Joint Venture	Subsidiary
Aggregate amount of loans/ advances in nature of loans:
- Repayable on demand (A)	Nil	Nil	22,123.41	Nil
- Agreement does not specify any terms or period of repayment (B)	Nil	Nil	Nil	404.37
Total (A+B)	Nil	Nil	22,123.41	404.37
Percentage of loans/ advances in nature of loans to the total loans	Nil	Nil	100	100

(iv) Based on information and explanation given to us, the Company has not advanced loans to the Directors/ to a Company in which the Directors are interested under section 185 of the Act read with proviso 185(1)(a). Further, the provisions of section 186 of the Act are not applicable to the Company.

(v) In our opinion and according to the information and explanations given to us, the Company has neither accepted any deposits nor any amounts which are deemed to be deposits from the public within the provisions of sections 73 to 76 of the Act and the rules framed there under. Therefore, clause 3(v) of the Order is not applicable to the Company.

(vi) The Central Government has not prescribed the maintenance of cost records for any of the business activities carried out by the Company under sub-section (1) of section 148 of the Act and the rules framed there under. Therefore, clause 3(vi) of the Order is not applicable to the Company.

(vii) (a) According to the information and explanation given to us, the Company is generally regular in depositing with appropriate authorities, undisputed statutory dues including Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues applicable to it. There were no undisputed amounts payable in respect of Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues applicable to it, which were outstanding, at the year end, for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us, statutory dues referred to in sub-clause (a) above which have not been deposited at the year-end on account of disputes, are as follows:

Period	Name of the statute	Nature of the dues	Forum where Case is pending	Disputed Tax/ Penalty Demand	Amount paid under Protest
AY 2005-06	Income Tax Act, 1961	Tax u/s 143(3)	Bombay High Court	114.73	-
AY 2006-07	Income Tax Act, 1961	Tax u/s 143(3) r.w.s. 147	Bombay High Court	2,101.46	-
AY 2007-08	Income Tax Act, 1961	Tax u/s 143(3)	Bombay High Court	4,957.91	-
AY 2008-09	Income Tax Act, 1961	Tax u/s 143(3)	Bombay High Court	8,956.54	-
AY 2009-10	Income Tax Act, 1961	Tax u/s 143(3)	Bombay High Court	1,564.03	-
AY 2010-11	Income Tax Act, 1961	Penalty u/s 271(1)(C)	CIT(A)	1,358.02	-
AY 2011-12	Income Tax Act, 1961	Tax u/s 143(3)	CIT(A)	1,079.81	14.00
AY 2012-13	Income Tax Act, 1961	Tax u/s 143(3)	CIT(A)	522.39	-
AY 2013-14	Income Tax Act, 1961	Tax u/s 143(3)	CIT(A)	684.76	-
AY 2014-15	Income Tax Act, 1961	Tax u/s 143(3) r.w.s. 144C(13)	Bombay High Court	684.87	-
AY 2015-16	Income Tax Act, 1961	Tax u/s 143(3)	CIT(A)	3,284.64	851.00
AY 2016-17	Income Tax Act, 1961	Tax u/s 143(3)	CIT(A)	1,940.06	-
AY 2017-18	Income Tax Act, 1961	Tax u/s 143(3)	CIT(A)	1,304.84	-
AY 2023-24	Income Tax Act, 1961	Tax u/s 143(3)	CIT(A)	37.28	-
FY 2003-04 to 2005-06	Income Tax Act, 1961	Tax u/s 201(1) and 201(1A)	Bombay High Court	9,820.00	-
FY 2010-11	Income Tax Act, 1961	Tax u/s 201(1) and 201(1A)	CIT(A)	2,170.00	109.00
Oct - 09 to June - 17	Finance Act, 1994	Service Tax	CESTAT	2,38,580.63	4,369.01
Apr 09 to Jul 14	Finance Act, 1994	Service Tax	Commissioner (Appeals)	1,553.18	767.00
1st June 2016 to 30th June 2017	Finance Act, 1994	Service Tax	Commissioner (Appeals)	33.55	0.72
FY 1993-94, FY 1994-95 & Apr 2017 to June 2017	VAT	Sales Tax	Bombay High Court/ Asst Comm(GVAT)*	245.69	95.00
FY 2018-19	CGST / SGST Act	GST	Bombay High Court	2,307.46	348.58
FY 2019-20	CGST / SGST Act	GST	GSTAT**	6,006.96	776.62
FY 2019-20 (Calcutta RO)	CGST / SGST Act	GST	Commissioner (Appeals)	76.83	3.90
FY 2020-21 & FY 2021-22 (SVP)	CGST / SGST Act	GST	Commissioner (Appeals)	412.88	37.53
FY 2018-19 to FY 2022-23 (SVP)	CGST / SGST Act	GST	Commissioner (Appeals)	17.13	0.86
FY 2018-19 to FY 2020-21 (SVP)	CGST / SGST Act	GST	Commissioner (Appeals)	245.26	12.26
FY 2019-20 & FY 2020-21 (SVP)	CGST / SGST Act	GST	Commissioner (Appeals)***	2,702.68	-

(d) the Company has not utilized the funds raised on short term basis for long term purposes.

(e) the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiary, and joint ventures and hence reporting under clause 3(ix)(e) of the Order is not applicable.

(f) the Company has not raised loans on the pledge of securities held in its subsidiary and joint ventures during the year and hence reporting under clause 3(ix)(f) of the Order is not applicable.

(x) (a) According to the information and explanations given to us, the Company has utilized proceeds amounting to Rs.13,385 lakhs raised through further public offer (FPO) in the earlier years towards the acquisition of vessel in current nancial year. (b) According to the information and explanations given to us, the company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year.

(xi) (a) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company, noticed or reported during the year, nor have we been informed of any such instance by the management. (b) During the year, no report under sub-section (12) of section 143 of the Companies Act has been led by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(c) According to the information and explanations given to us, the Company has not received any whistle-blower complaints during the year.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, paragraph 3(xii) (a), (b) and (c) of the Order are not applicable to the Company. (xiii) According to the information and explanation given to us, all transactions entered into by the Company with the related parties are in compliance with sections 177 and 188 of Act, where applicable, and the details have been disclosed in the Standalone Financial Statements as required by the applicable accounting standards.

(xiv) (a) In our opinion and according to the information and explanations given to us, the Company has an internal audit system commensurate with its current size and nature of its business.

(b) We have considered the internal audit reports for the year under audit, issued to the Company till date, in determining the nature, timing and extent of our audit procedures.

(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with them during the year and therefore, paragraph 3(xv) of the Order is not applicable to the Company.

(xvi) (a) According to the information and explanation given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and therefore, paragraph 3(xvi) (a) of the Order is not applicable to the Company.

(b) According to the information and explanation given to us, there are no Non-Banking Financial or Housing Finance activities and therefore, paragraph 3(xvi) (b) of the Order is not applicable to the Company.

(c) According to the information and explanation given to us, the company is not a Core Investment

Company (CIC) as de ned in the regulations made by the Reserve Bank of India and therefore, paragraph 3(xvi) (c) of the Order is not applicable to the Company.

(d) According to the information and explanation given to us, the Group (the Company and its two subsidiary and four JVs) does not have any CIC as part of the Group and hence clause 3(xvi)(d) of the Order is not applicable to the Company.

(xvii) On an overall examination of the nancial statements and in our opinion, the Company has not incurred cash losses in the nancial year and in the immediately preceding nancial year.

(xviii) During the year there has not been any resignation of the statutory auditors and therefore, paragraph 3(xviii) of the Order is not applicable to the Company.

(xix) On the basis of the nancial ratios, ageing and expected dates of realization of nancial assets and payment of nancial liabilities, other information accompanying the nancial statements, our knowledge of the Board of Directors and management plans, we are of the opinion that no material uncertainty exists as on the date of the audit report that the company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We however state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

(xx) (a) According to the information and explanations given to us the unspent amounts as on 31.03.2026 that are required to be transferred to a fund speci ed in Schedule VII of the Companies Act (the Act), in compliance with second proviso to sub section 5 of section 135 of the Act have been identi ed and approved to be transferred to funds speci ed in schedule VII. The same has not been transferred till the date of our signing of the report since the prescribed period of six months from the balance sheet date has not elapsed. (b) According to the information and explanations given to us, any amount remaining unspent under sub section (5) of section 135 of Companies Act, pursuant to any ongoing project, has been transferred to special account in compliance with provision of sub section (6) of section 135 of the said Act. However, in few instances the unspent amount of ongoing projects have not been transferred to a special account (Unspent CSR A/c) within stipulated period owing to the decision of the management to transfer the fund speci ed under Schedule VII of The Companies Act 2013.

Further, we draw attention to the fact that the Annual Action Plan (AAP), as originally approved by the Board, did not explicitly classify the CSR projects as "ongoing" or "other than ongoing" as required under Rule 2(1)(i) read with Rule 5(2) of the Companies (CSR Policy) Rules, 2014. The said classi cation was carried out and the AAP was subsequently amended with Board approval prior to the close of the current nancial year.

ANNEXURE 2 TO THE INDEPENDENT AUDITORS REPORT

[Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory Requirements section in our Independent Auditors Report of even date to the members of The Shipping Corporation of India Limited on the Standalone Financial Statements for the year ended 31.03.2026]

Report on the Internal Financial Controls with reference to Standalone Financial Statements under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal nancial controls with reference to Standalone Financial Statements of The Shipping Corporation of India Limited (“the Company”) as of 31.03.2026 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal nancial controls based on the internal control with reference to nancial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance of adequate internal nancial controls that were operating effectively for ensuring the orderly and ef cient conduct of its business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable nancial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal nancial controls with reference to nancial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing speci ed under section 143(10) of the Act to the extent applicable to an audit of internal nancial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal nancial controls with reference to nancial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal nancial controls with reference to nancial statements and their operating effectiveness.

Our audit of internal nancial controls with reference to nancial statements included obtaining an understanding of internal nancial controls with reference to nancial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal controls based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the nancial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is suf cient and appropriate to provide a basis for our audit opinion on the Companys internal nancial controls with reference to nancial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A companys internal nancial control with reference to nancial statements is a process designed to provide reasonable assurance regarding the reliability of nancial reporting and the preparation of nancial statements for external purposes in accordance with generally accepted accounting principles. A companys internal nancial control with reference to nancial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly re ect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of nancial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the nancial statements.

Inherent Limitations of Internal Financial Controls with reference to Financial Statements

Because of the inherent limitations of internal nancial controls with reference to nancial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal nancial controls with reference to nancial statements to future periods are subject to the risk that the internal nancial controls with reference to nancial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, and to the best of our information and according to explanations given to us, the Company has, in all material respects, adequate internal nancial controls with reference to nancial statements and such internal nancial controls with reference to nancial statements were operating effectively as at 31.03.2026, based on the internal control with reference to nancial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

ANNEXURE 3 TO THE INDEPENDENT AUDITORS REPORT

Annexure 3(a) - Directions under Section 143(5) of the Companies Act, 2013

On the accounts of The Shipping Corporation of India Limited for the nancial year 2025-26

To the Members of The Shipping Corporation of India Limited

Revision in Independent Auditors Report dated May 08, 2026 on Standalone Financial Statements of The Shipping Corporation of India Limited for the year ended on March 31, 2026.

The Shipping Corporation of India Limited (‘ the Company) being a government company, the Comptroller & Auditor General of India (C&AG) had carried out supplementary audit of the company pursuant to provisions of section 143 (6) of the Companies Act, 2013.

Upon supplementary audit, the C&AG has issued comments under section 143 (6) (b) of the Companies Act, 2013 on our report as Statutory Auditors of the Company with respect to S.No. 1 and 3 of Annexure 3(a) Directions under Section 143(5) of the Companies Act, 2013 and S.No. 4 of Annexure 3(b) Additional directions under Section 143(5) of the Companies Act, 2013.

Pursuant to the comments made by C&AG, we hereby make consequent revision in our Independent Auditors Report dated May 08, 2026 at S.No. 1 and 3 of Annexure 3(a) Directions under Section 143(5) of the Companies Act, 2013 and S.No. 4 of Annexure 3(b) Additional directions under Section 143(5) of the Companies Act, 2013 to the aforesaid audit report on Standalone Financial Statements of the Company and making necessary changes in these said clauses.

The revised S.No. 1 and 3 of Annexure 3(a)- Directions under section 143 (5) of the Companies Act, 2013 to our Independent Auditors Report dated May 08, 2026, on Standalone Financial Statements of the Company, should now be read as under:-

Sr. No.	Directions	Auditors comments including Action taken wherever required to be taken	Impact on the Accounts and financial statements
1	Assess the fair valuation of all the investments, both quoted and unquoted, made directly by the Company or through Trusts, for Post- retirement benefits of the employees. This includes verifying valuation methodologies, ensuring consistency with Ind AS and reviewing supporting documentation. The auditor shall provide a brief note on the valuation approach, its reasonability, and compliance with applicable regulations, reporting any material deviations or misstatements.	The Companys investments for post- retirement benefits of employees to trusts have been fair valued and shown as plan assets (As per Actuarial Valuation) in the financial statements of the company. We obtained an understanding of the investment policies, and reviewed the nature and composition of their investments. The Plan Assets of quoted investments was verified with reference to market prices, and mutual fund investments with published NAVs. The plan Assets of unquoted investments, we assessed the valuation methodologies and key assumptions, and evaluated their consistency with Ind AS 113. We also reviewed actuarial valuation reports. Based on the above, in our opinion, the valuation methodologies of plan assets (As per actuarial valuations) applied are reasonable and consistent with applicable Indian Accounting Standards, and no material	No Impact