2.22 Provisions, Contingent and Contingent Assets

Provisions are recognized when the Company has a binding present obligation. This may be either
legal because it derives from a contract, legislation or other operation of law, or constructive because
the Company created valid expectations on the part of third parties by accepting certain
responsibilities.

To record such an obligation, it must be probable that an outflow of resources will be required to settle
the obligation and a reliable estimate can be made for the amount of the obligation. The amount
recognized as a provision and the indicated time range of the outflow of economic benefits are the best
estimate (most probable outcome) of the expenditure required to settle the present obligation at the
Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Non¬
current provisions are discounted if the impact is material.

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized because it is not probable that
an outflow of resources will be required to settle the obligation. The Company does not recognize a
contingent liability but discloses its existence in the financial statements. Payments in respect of such
liabilities, if any are shown as advances.

2.23 Recent Accounting Pronouncement

Ministry of Corporate Affairs (“MCA”) has notified the following new amendments to Ind AS which
the Company has applied as they are effective for annual periods beginning on or after April 1, 2023.
Amendment to Ind AS 1 “Presentation of Financial Instruments”

The amendments require companies to disclose their material accounting policies rather than their
significant accounting policies. Accounting policy information is material if, together with other
information can reasonably be expected to influence decisions of primary users of general-purpose
financial statements. The Company does not expect this amendment to have any significant impact in
its financial statements.

Amendment to Ind AS 12 “Income Taxes”

The amendments clarify how companies account for deferred tax on transactions such as leases and
decommissioning obligations. The amendments narrowed the scope of the recognition exemption in
paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions
that, on initial recognition, give rise to equal taxable and deductible temporary differences. The
Company is evaluating the impact, if any, in its financial statements.

Amendment to Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”

The amendments will help entities to distinguish between accounting policies and accounting
estimates. The definition of a change in accounting estimates has been replaced with a definition of
accounting estimates. Under the new definition, accounting estimates are “monetary amounts in
financial statements that are subject to measurement uncertainty”. Entities use measurement
techniques and inputs to develop accounting estimates if accounting policies require items in financial
statements to be measured in a way that involves measurement uncertainty. The Company does not
expect this amendment to have any significant impact in its financial statements.

28 Disclosure under MSME Act :

Amount due to micro and small enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has
been determined to the extent such parties have been identified on the basis of information available with the Company.

a. Credit Risk: Credit risk is the risk of financial loss arising from counter party failure to repay or service debt according to the
contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers
on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Trade receivables consists
of large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk.
The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

b.Liquidity Risk: Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach for managing liquidity is to ensure
that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to Company's reputation, typically the company ensures that it has sufficient cash on
demand to meet expected operational expenses, servicing of financial obligations.

C.Market Risk: Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the
price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign
exchange rates and other market changes that affect market risk sensitive instruments. The do not have such exposure as on Balance
Sheet date.

31 The company is engaged in the business of owning & operating barges, tugs & vessels in addition to undertaking ship
management for other owners. From the internal organization of the Company's activities and consistent with the internal
reporting provided to the chief operating decision-maker and after considering the nature of its services, the ultimate customer
availing those services and the methods used by its to provide those services, "Vessel Operating Services" has been identified to
be the Company's sole operating segment. The Company's management reporting and controlling systems principally use
accounting policies that are the same as those described in Note 2 in the summary of significant accounting policies under Ind AS.

32 Disclosure U/s 186 (4) Of Companies Act, 2013

Name of Subsidiary : Nil

Investment Details in Subsidiary : Not Applicable

33 In the opinion of the management, the current assets, loans and advances (including capital advances) have a value on
realization in the ordinary course of business at least equal to the amount at which they are stated. The provision for all
known liabilities is adequate and not in excess of what is required.

34 The balances in the account of Trade Debtors and Trade creditors are subject to reconciliation / confirmations. The management
have prepared the reconciliation statements and there is no material difference affecting the current year's financial statements.

35 The company is not covered under the provisions of Section 135 of Companies Act, 2013, hence no disclosure is required for same.

36 The Aditri Vessel engaged in overseas operation in Nigeria from 25th March 2025.

37 The company have incurred Liquidity Damage of Rs.3.64 Crores during the year.

38 The company has not traded or invested in Crypto Currency or virtual currency during the financial year.

39 The company has availed borrowings from Bank during the financial year and utilized same for the purpose it was taken. The
company has never been declared as wilful defaulter by any of bank or financial institution.

40 The Company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities, which
are in agreement with the books of account.

41 Capital Management: The Company's capital management is intended to create value for shareholders by facilitating the
achievement of long-term and short-term goals of the Company. The Company determines the amount of capital required on the
basis of annual business plan coupled with long-term and short-term strategic investment and expansion plans. The funding
needs are met through equity, cash generated from operations, long-term and short-term bank borrowings and issue of non¬
convertible debt securities.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt
portfolio of the Company.

42 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment received
Indian Parliament approval and Presidential assent in September 2020. The Code has been published in the Gazette of India
and subsequently on November 13, 2020 draft rules were published and invited for stakeholders' suggestions. However, the
date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it
comes into effect and will record any related impact in the period the Code becomes effective.

43 Considering future economic benefits of the assets and appropriate preparation and presentation of the financial statements,
the company has adopted straight line method of depreciation w.e.f. 01st April 2022.

44 The company do not have any intangible assets under development; hence no disclosure is required under the clause.

45 Capital Commitment Current Year - Rs. 177.68 lakhs. ( Previous Years : 3808.05 Lakhs )

46 The title deeds of all the immovable properties (other than properties where the Company is the lessee), are held in the name
of the Company.

47 The company has not granted any loans or Advances in the nature of loans to promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person during the financial year.

48 No proceeding has been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988.

49 The provision of the sub section 87 of section 2 of Companies Act, 2013 is not applicable to the company.

53 The company have not entered into any transaction(s) with companies struck off under section 248 of the Companies Act, 2013 or

section 560 of Companies Act, 1956.

54 Previous Year Figures have been regrouped/ re- arranged / re- classified, wherever required to make comparable.

SIGNATURE TO NOTES T TO '54'

For Suvarna & Katdare For and on behalf of the Board of Directors

Chartered Accountants Sadhav Shipping Limited

FRN : 125080W

Ravindra Raju Suvarna Kamalkant Choudhury Vedant Choudhury

Partner M. No.: 032007 Director DIN 00249338 Director DIN

07694884

UDIN: 25032007BMIGDP2203

Nilakantha Sahu Madhuri Rathi

CFO CS

Place : Mumbai Place : Mumbai

Date:May 21, 2025 Date:May 21, 2025