To The Members of Shreeji Shipping Global Limited (Formerly known as Shreeji Shipping Global Private Limited & converted from Shreeji Shipping)
REPORT ON AUDIT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Opinion
We have audited the accompanying standalone financial statements of Shreeji Shipping Global Limited (Formerly known as Shreeji Shipping Global Private Limited & converted from Shreeji Shipping) (the Company), including operations of the Companys branch office at Africa, the financial effects whereof have been incorporated in the books of account maintained at the Head Office which comprise the Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year ended on that date, and notes to the standalone financial statements, including a summary of material accounting policies and other explanatory information (hereinafter referred to as the 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 (hereinafter referred to as 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, (hereinafter referred to as Ind AS) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2026, and its profit and other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified 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 (hereinafter referred to as ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance 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.
| Key Audit Matters | Auditors Response |
| Evaluation of Dry Docking Cost, Repair Expenses and remaining useful life of Ships: | Our audit procedures in response to this Key Audit Matter included, inter alia, the following: |
| As per Ind AS 16, Property, Plant and Equipment, subsequent expenditure relating to major inspections, overhauls and planned dry-docking of ships is recognised as part of the carrying amount of the ship or as a separate component, as appropriate, when the recognition criteria prescribed under the Standard are met. Such expenditure is subsequently depreciated over the estimated useful life of the relevant component. | - Obtained an understanding of the Companys processes and controls relating to ships repair and dry-docking expenditure. |
| - Evaluated the design and tested the operating effectiveness of key internal controls over classification of expenditure between capitalisable dry-docking costs and routine repairs and maintenance. | |
| - On a sample basis, examined supporting documents for significant repair and dry-docking expenditure, including shipyard invoices, completion reports and dry-docking records, to assess the nature and accounting treatment of such expenditure. | |
| - Assessed whether expenditure capitalised as dry-docking costs met the recognition criteria under Ind AS 16 and whether routine repairs and maintenance were appropriately charged to the Statement of Profit and Loss. |
| Key Audit Matters | Auditors Response |
| The Company is required to periodically undertake dry-docking and major inspections of its vessels to meet statutory and classification requirements and to maintain the ships in seaworthy condition. The determination of whether expenditure represents capitalisable dry-docking expenditure or repairs and maintenance expenditure involves management judgement. Further, determination of the estimated useful life of the dry-docking component involves judgement, including consideration of the expected period of economic benefit and applicable statutory and classification requirements. Considering the materiality of such expenditure and the judgement involved in determining its nature, recognition and useful life, we considered this matter to be a Key Audit Matter. | Evaluated the estimated useful lives assigned to dry-docking components with reference to managements assessment, historical dry-docking cycles and expected economic benefits. Tested the depreciation charge relating to capitalised dry-docking expenditure, including the commencement of depreciation and useful lives applied. Considered the adequacy of related disclosures in the Standalone Financial Statements in accordance with Ind AS 16 and other applicable Indian Accounting Standards |
| Litigations, Claims and Contingent Liabilities: The Company is involved in various legal, regulatory and other disputes, the outcomes of which cannot be determined with certainty and may result in significant financial liabilities. The assessment of whether such claims against the company are is required to be recognised as a provision or disclosed as a contingent liability involves significant management judgement, particularly in evaluating the probability of an adverse outcome and, where applicable, estimating the potential financial impact. The assessment of these matters involves significant uncertainty and requires management to consider the status of proceedings, legal advice, precedents and other relevant factors. Given the magnitude of certain litigations, the inherent uncertainty associated with their outcomes and the judgement involved in assessing the related accounting and disclosures, we considered this matter to be a Key Audit Matter. (Refer Note No. 40 to the Standalone Financial Statements regarding provisions, contingent liabilities and commitments.) | Our audit procedures in response to this Key Audit Matter included, inter alia, the following: Obtained an understanding of the processes and relevant controls implemented by the Company for identifying, assessing, monitoring and reporting legal, regulatory and other litigations and claims. Reviewed the litigation register and, on a sample basis, corroborated significant matters with relevant legal correspondence and other supporting documentation to assess the completeness of litigations and claims considered for a disclosure purposes. Obtained an understanding of the status of significant ongoing litigations and claims through discussions with management and relevant personnel. Inspected selected legal correspondence, notices and other supporting documents. Assessed managements evaluation of the likelihood of an adverse outcome and the related financial implications, with reference to the facts and circumstances of the respective cases, developments during the year and relevant legal precedents, wherever applicable. Obtained and evaluated, where considered relevant and available, legal opinions and other communications from external legal advisors and considered the same in assessing managements evaluation of the likely outcome of significant litigations and claims. Assessed the adequacy of related disclosures in the financial statements in accordance with applicable Indian Accounting Standards. |
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the Consolidated Financial Statements, Standalone Financial Statements and our auditors report thereon.
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.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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 financial position, financial performance, total comprehensive income, changes in equity and cash flows 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 financial 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 and the Board of Directors are 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Companys Management and Board of Directors are also responsible for overseeing the Companys financial 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 sufficient 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 financial controls system 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 significant 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 influenced. 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 identified 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 significant audit findings, including any significant deficiencies 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 significance in the audit of the standalone financial statements of the current period 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 benefits of such communication.
Other Matters
The Company has a branch located in Africa. The branch is not currently engaged in active business operations; however, one of the Companys barges is stationed at the said location, in respect of which the branch continues to incur repair and maintenance expenses, crew-related expenses and other related expenses including depreciation on the said barge. The books of account of the said branch are maintained at the Head Office of the Company in India and no separate audit of the financial information of the said branch has been carried out in Africa.
The financial information relating to the said branch, aggregating to 23.08 million during the year, comprises expenses of 6.32 million, current tax expense of 3.66 million and foreign exchange gain of 13.10 million arising on a trade receivable of the said branch. We have audited the aforesaid amounts based on the books of account and other records maintained at the Head Office, together with the supporting documents, information and explanations made available to us by the Management.
Our opinion on the financial statements is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. 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 purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
c) The Balance Sheet and the Statement of Profit 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 Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
e) On the basis of the written representations received from the directors as on March 31, 2026, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2026, from being appointed as director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to the standalone financial statement of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure A. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls with reference to standalone financial statements.
g) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, no remuneration has been paid by the Company to its directors during the year. Accordingly, the provisions of Section 197 of the Act relating to payment of remuneration to directors are not applicable to the Company.
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 financial position in its standalone financial statements - Refer Note No. 40 to the standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts required to be transferred by the Company to the Investor Education and Protection Fund during the year. Accordingly, the question of delay in transfer of any such amounts does not arise.
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) 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 identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) 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 identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been 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 (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The interim dividend declared and paid by the Company during the year is in accordance with Section 123 of the Companies Act 2013. No final dividend has been proposed by the Board of Directors for the year.
vi. Based on our examination, which included test checks, the company has used accounting software for maintaining its books of account for the financial year ended March 31, 2026 which has feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of the audit trail featured being tampered with and the audit trail has been preserved by the Company as per the statutory requirements for record retention.
2. As required by the Companies (Auditors Report) Order, 2020 (the Order) issued by the Central Government in terms of Section 143(11) of the Act, we give in Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Sarda & Sarda Chartered Accountants (FRN 109264W)
Rajnikant Pragada Proprietor M.No.118132 UDIN:26118132RWCRWI3954
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF SHREEJI SHIPPING GLOBAL LIMITED
(FORMERLY KNOWN AS SHREEJI SHIPPING GLOBAL PRIVATE LIMITED & CONVERTED FROM SHREEJI SHIPPING)
(Referred to in paragraph 1(f) under Report on Other Legal and Regulatory Requirements section of our report of even date)
Report on the Internal Financial Controls with reference to standalone financial statements under Clause (i) of subsection 3 of Section 143 of the Companies Act, 2013 (the Act)
We have audited the internal financial controls over financial reporting of Shreeji Shipping Global Limited (Formerly Known as Shreeji Shipping Global Private Limited & Converted From Shreeji Shipping) (the Company) as of March 31, 2026 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managements and Board of Directors Responsibilities for Internal Financial Controls
The Companys management and Board of Directors are responsible for establishing and maintaining internal financial controls with reference to standalone financial statements based on the internal control criteria with reference to standalone financial statements, 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 issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient 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 financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial controls with reference to standalone financial statements of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls with reference to standalone financial statements. 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 financial controls with reference to standalone financial statements were 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 financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of internal financial controls with reference to standalone financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting.
Meaning of Internal Financial Controls with reference to standalone financial statements
A companys internal financial control with reference to Standalone Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control with reference to Standalone Financial Statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to Standalone Financial Statements
Because of the inherent limitations of internal financial controls over financial reporting, 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 financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting 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, to the best of our information and according to the explanations given to us the Company has, in all material respects, an adequate internal financial controls with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as at March 31, 2026, based on the criteria for internal financial control with reference to standalone financial statements 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 issued by the Institute of Chartered Accountants of India.
For Sarda & Sarda Chartered Accountants (FRN 109264W)
Rajnikant Pragada Proprietor M.No.118132 UDIN:26118132RWCW13954
Place: Jamnagar Date: May 29, 2026
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF SHREEJI SHIPPING GLOBAL LIMITED
(FORMERLY KNOWN AS SHREEJI SHIPPING GLOBAL PRIVATE LIMITED & CONVERTED FROM SHREEJI SHIPPING)
(Referred to in Paragraph 2 under the heading of Report on Other Legal and Regulatory Requirements of our report of even date.)
In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:
(i) In respect of Property, Plant and Equipment,
(a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment and capital work in progress and relevant details of Right-of-use assets.
(B) The Company has maintained records showing full particulars of Intangible Assets and Intangibles assets under Development.
(b) According to information and explanations given to us, the Property, Plant and Equipment have been physically verified by the management at reasonable intervals during the year and no material discrepancies were noticed during such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company provided to us, we report that, the title in respect of self-constructed buildings and title deeds of all other immovable properties (Other than immovable properties where company the company is lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the Company as at the balance sheet date except in respect of the following immovable properties:
| Gross carrying amount as at Balance Sheet date (in millions) | Title deeds held in the name of | Whether title deeds held is a promoter, director or their relative or employee | Property held since which date | Reason for not being held in name of the Company |
| Bedeshwar Land, (Survey No. 4131/A41), Gujarat | Shreeji Shipping | No | September 2, 2005 | |
| Bedeshwar Plot Assets (Survey No. 4131/A31 to A40), Gujarat | Shreeji Shipping | No | February 18, 2006 | |
| Dharmbhakti Estate Plot-Pipaliya (Survey No. 125-48 & 49), Gujarat | Shreeji Shipping | No | August 10, 2010 | |
| Dharmbhakti Estate Plot-Pipaliya (Survey No. 125-50), Gujarat | Shreeji Shipping | No | February 18, 2012 | |
| Land at Mota Dahisara Morbi (Survey No. 558 Paiki 2), Gujarat | Shreeji Shipping | No | December 7, 2023 | |
| Land at Mota Dahisara Morbi (Survey No. 558 Paiki 3), Gujarat | Shreeji Shipping | No | December 7, 2023 | |
| Land at Mota Dahisara Morbi (Survey No. 971) | Shreeji Shipping | No | December 7, 2023 |
(d) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-use assets) or intangible assets or both during the year.
(e) According to information and explanations given to us, there are no proceedings initiated during the year or are pending against the Company as at March 31, 2026 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
(ii) In respect of Inventory:
(a) The company is engaged in rendering of services and accordingly does not hold inventory other than consumable items. Steel procured for dry-docking, though held during the year, is not classified as inventory, being capitalised as Capital Work-in-Progress in the books of account, and is accordingly excluded from the scope of this paragraph. According to the information and explanations given to us, physical verification of inventory of consumable items has been conducted by the management at reasonable intervals during the year. In our opinion, the coverage and
procedure of such verification by the management is appropriate. No discrepancies of 10% or more in the aggregate for each class of inventory were noticed on such physical verification.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks on the basis of security of current assets. On the basis of our examination of the records of the Company, the quarterly returns or statements filed by the Company with such banks or financial institutions are in agreement with the books of account, except for the following items which are reported differently for the reasons stated below:
? Steel procured for dry-docking, which is reported as stock of steel in the quarterly statements filed with the bank, due to pending completion of the dry-docking activity, whereas in the books of account it is capitalised as Capital Work-in-Progress in accordance with recognition criteria prescribed under Ind AS 16.
? Trade receivables from one of the customers, which have been offset against the corresponding trade payable due to the said customer as part of the financial statement closing process, resulting in a lower amount of trade receivables in the audited books of account as compared to the amount reported in the quarterly statement filed with the bank, wherein such receivable and payable were reflected on a gross basis, and certain other changes in the value of trade receivables arising upon completion of quarterly financial statement closing activities subsequent to submission of provisional quarterly statements to the bank.
(iii) The Company has made investments in, provided guarantee or security and granted unsecured loans during the year, in respect of which:
a. The Company has provided loans, guarantee & security during the year, the details of which are given below:
( Rs.in millions)
| Particulars | Loan | Guarantee | Security |
| Aggregate Amount granted/ Provided during the year: | |||
| - Subsidiary | - | - | - |
| - Joint Venture | - | - | - |
| - Others | 70.50 | 2,777.82 | 947.80 |
| Balance Outstanding as at Balance Sheet date in respect of the above case: | |||
| - Subsidiary | - | - | - |
| - Joint Venture | - | - | - |
| - Others | 72.31 | 6,832.82 | 947.80 |
*Includes Fixed Deposits given as security on behalf of Joint Venture Entity. ^Others includes loan provided to employees and unrelated parties
The Company has not provided any advances in the nature of loans to any other entity during the year.
b. The investments made, guarantees provided, security given and the terms and conditions of the grant of all the above-mentioned loans and guarantees provided, during the year are, in our opinion, prima facie, not prejudicial to the Companys interest.
c. In respect of loans, no specific schedule for repayment of principal and payment of interest has been stipulated by the Company, as the loans are repayable on demand. Accordingly, there is no question of regularity of repayment of principal and payment of interest. (Refer reporting under clause (iii)(f) below).
d. According to information and explanations given to us and based on the audit procedures performed, in respect of loans granted there is no overdue amount remaining outstanding as at the balance sheet date.
e. No loan granted by the Company 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 to its employees and to a business concern, which is not a related party, and such loans are repayable on demand.
(iv) In our opinion and according to the information and explanations given to us, the Company has not granted any loans or made any investments or provided any guarantees and security in contravention of the provisions of Section 185 and 186, to the extent applicable, of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits in contravention of the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and rules framed thereunder.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended,
prescribed by the Central Government for the maintenance of cost records under Section 148(1) of the Act, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained by the Company.
(vii) (a) Undisputed statutory dues, including Goods and Service tax, Provident Fund, Employees State Insurance, Income-tax, Sales Tax, duty of Custom, duty of Excise, Value Added Tax, cess and other material statutory dues applicable to the Company have generally been regularly deposited by it with the appropriate authorities.
There were no undisputed amounts payable in respect of Goods and Service tax, Provident Fund, Income-tax, Sales Tax, Service Tax, duty of Custom, Duty of Excise, Value Added Tax, cess and other material statutory dues in arrears as at March 31, 2026 for a period of more than six months from the date they became payable.
(b) Details of statutory dues referred to in sub-clause (a) above which have not been deposited as on March 31, 2026 on account of disputes are given below:
( Rs.in millions)
| Nature of Statute | Nature of Dues | Amount Unpaid | Amount paid under protest | Period to which the amount relates | Forum where the dispute is pending |
| Income-tax Act, 1961 | Interest on Income Tax | 1.48* | - | 2012-13 | Assistant Commissioner of Income Tax Circle 2 (1)-Jamnagar. |
| Income-tax Act, 1961 | Income-tax | 0.49 | 1.22 | 2017-18 | Commissioner of Income Tax (Appeals) |
| Income-tax Act, 1961 | Income-tax | 9.97 | - | 2019-20 | Commissioner of Income Tax (Appeals) |
| Service Tax Act, 1994 and Central Excise Act, 1944 | Service Tax | 6.58 | - | 2012-13 to 2013-14 | Principle Commissioner Central Excise, Central Excise Department |
| Service Tax Act, 1994 and Central Excise Act, 1944 | Service Tax | 8.11 | - | 2013-14 to 2014-15 | Principle Commissioner Central Excise, Central Excise Department |
| Service Tax Act, 1994 and Central Excise Act, 1944 | Service Tax | 15.28 | - | 2014-15 to 2017-18 | Principle Commissioner Central Excise, Central Excise Department |
| State Goods and Services Tax Act, 2017 And Central Goods and Service Tax Act, 2017 | Goods and Service Tax | 25.23 | 2.42 | 2018-19 to 2020-21 | Appellate Authority - Rajkot (Appeal) |
*The amount relates to interest demand under section 220(2) of the Income-tax Act, 1961; however, it does not include any interest charged on such interest demand.
(viii) According to the information and explanations given to us, the Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year.
(ix) (a) According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings or in the payment of interest thereof to a financial institution, bank or government.
(b) According to the information and explanations given to us, the Company has not been declared a willful defaulter by any bank or financial institution or government.
(c) According to the information and explanations given to us, the Company has applied funds for the purpose for which they were obtained.
(d) According to the information and explanation given to us, the Company has not applied funds raised for short term basis for long term purposes.
(e) According to the information and explanation given to us, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates, or joint ventures.
(f) According to the information and explanation given to me, the Company has not raised loans during the year on the pledge of securities held in its subsidiaries, associates, or joint ventures.
(x) (a) In our opinion, moneys raised by way of initial public offer during the year, have been, prima facie, applied by the Company for the purposes for which they were raised. However the portion of the amount raised, which remain unutilized during the year, have been temporarily invested in bank deposits of scheduled commercial banks as on 31 March 2026.
(b) 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) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud by or on the Company has been noticed or reported during the year under audit.
(b) According to the information and explanations given to us, no report under sub-section (12) of Section 143 of the Companies Act, 2013 has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) As represented to us by the Management, there were no whistle blower complaints received by the Company during the year.
(xii) The Company not being Nidhi Company the matters specified in para (xii) of the Order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to us, the transactions with related parties are in compliance with Section 177 and 188 of the Act, where applicable, and the details of the related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
(xiv) (a) Based on information and explanations provided to us and our audit procedures, in our opinion, the Company has an internal audit system commensurate with the size and nature of its business.
(b) We have considered the internal audit report of the Company issued for the year under audit.
(xv) In our opinion, during the year the Company has not entered into any non-cash transactions with any of its directors or subsidiaries or persons connected with such directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a) of the Order is not applicable.
(b) According to the information and explanations given to us, the Company has not conducted any Non-Banking Financial or Housing Finance Activities without a valid Certificate of Registration from the Reserve Bank of India.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Hence, reporting under clause 3(xvi)(c) of the Order is not applicable.
(d) According to the information and explanation given to us, the company is not a core investment company (CIC) as defined in the regulations made by the Reserve Bank of India, so question of number of CICs which are part of group does not arise.
(xvii) The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.
(xix) On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that 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) The Company has fully spent the required amount towards Corporate Social Responsibility (CSR) and there are no unspent CSR amounts for the year requiring a transfer to a fund specified in Schedule VII of the Act or special account in compliance with the provision of sub-section (6) of Section 135 of the Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable for the year.
(b) The Company does not have any amount remaining unspent which is required to be transferred to a special account in compliance with the provision of sub-section (6) of Section 135 of the Act. Accordingly, provision of clause 3(xx)(b) of the Order is not applicable.
For Sarda & Sarda Chartered Accountants (FRN 109264W)
Rajnikant Pragada Proprietor M. No. 118132 UDIN: 26118132RWCWRW13954
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