3.9 Provisions , Contingent Liabilities and Contingent assets

a) Provisions

A provision is recognized if, as a result of a past event,
the Company has a present legal obligation that can be
estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation.

Provisions (excluding retirement benefits and
compensated leave) are not discounted to its present value
and are determined by the best estimate of the outflow of
economic benefits required to settle the obligation at the
reporting date. These are reviewed at each reporting date
adjusted to reflect the current best estimates.

Warranty obligations included in this type of provisions are
not treated as a separate performance obligation, unless
the customer has the option of contracting the warranty
separately, therefore they are recognized in accordance
with Ind AS 37. These provisions are classified as current
liabilities since they relate to the operating construction
projects cycle, in line with Ind AS 1.

Provision towards guarantee claims in respect of ships
delivered wherever provided/ maintained is based on
technical estimation. For the ships delivered, guarantee
claims are covered by way of insurance policies covering the
guarantee period on case-to-case basis, wherever required

Provisions for anticipated losses are recognized when it
becomes apparent that the total costs expected to fulfi
a contract exceed expected contract revenues. For the
purpose of determining, where appropriate, the amount
of the provision, budgeted contract revenue will include
the forecast revenue that is considered probable, in line
with Ind AS 37 as well as incremental costs. General costs
are not directly attributable to a contract and are therefore
excluded from the Budgeted cost unless they are explicitly
passed on to the counterparty in accordance with the
contract, in line with paragraph 68 of Ind AS 37.

b) Contingent Liabilities and Contingent Assets

In the normal course of business, contingent liabilities may
arise from litigations and other claims against the Company.
Where the potential liabilities have a low probability of
crystallizing or are very difficult to quantify reliably, the
Company treats them as contingent liabilities. Such liabilities
are disclosed in the notes but are not provided for in the
financial statements. Although there can be no assurance
regarding the final outcome of the legal proceedings
Company does not expect them to have a materially
adverse impact on the financial position or profitability
The Company does not recognize a contingent liability but
discloses its existence in the financial statements.

A contingent asset is a possible asset that arises from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain

future events not wholly within the control of the entity.
The Company does not recognize a contingent asset but
discloses its existence in the financial statements where an
inflow of economic benefits is probable.

3.10 Revenue Recognition

a) Revenue from Operations

Revenue from contracts with customers are measured
based on the consideration specified in a contract with a
customer (ie., transaction price, which is the fair value of
consideration received or receivable)

At the first instance, revenue recognition process involves
identifying the relevant contracts and technical evaluation
of the performance obligations, contained therein.

A single performance obligation is identified in

shipbuilding and/or ship repair segments for each vessel,
due to the high degree of integration and customization of
the various goods and services forming a combined output
that is transferred to the customer over time.

The company choses the appropriate method of measuring
the progress of the completion at the contract inception
for recognizing revenue over time, and are applied
consistently to similar performance obligations under the
respective segments and/or activities carried out thereon.

Recognition of Revenue for a performance obligation
satisfied over time is made only if the company can
reasonably measure its progress towards complete
satisfaction of the performance obligation.

The performance obligations for the shipbuilding and
Ship repair activities carried out by the company are
satisfied over time rather than at a point in time since
the Company's performance does not create an asset
with an alternative use to the Company ie contractual
restrictions and practical limitations to readily direct that
asset for another use (Even in some cases it will be able to
do so, it can only be done after significant changes and at
significant cost) and it has an enforceable right to payment
for performance completed to date.

Revenue is recognized when the company satisfies
performance obligations by transferring promised goods
and services to the customer over a period of time using
output method based on measurement of physical
performance completed to date in respect of contracts
with customers for ship building and ship repair other than
Indigenous Aircraft Carrier (IAC).

In respect of contract with Indian Navy for construction
of Indigenous Aircraft Carrier, which is partly 'fixed price
basis' and partly 'cost plus basis', the revenue:

• from fixed price portion is recognized using
output method .

• by way of mark up from cost plus part of the contract
for procuring and supply of materials and design
outsourcing is recognized when performance
obligations as per the terms of the contract are
fulfilled upon making payments to the suppliers.

• The cost of materials, value of design outsourcing
and other expenses incurred for the vessel which are
recoverable separately from Navy are charged off
to the statement of Profit and Loss when materials
are consumed/activities are performed/expenses are
incurred and are simultaneously grossed up with the
value of work done and recognized as revenue.

In the case of ship repair contracts involving continuous
multiple years maintenance support/ recurring and routine
services, the company opted for time-elapsed output
method, i.e, measuring the progress based on time elapsed
to reporting date, which is representative of the satisfaction
of performance obligation subject to entitlement of
consideration in exchange of goods and/or services.

Based on the technical assessment considering the latest
available information to the company, measuring the
progress towards complete satisfaction of a performance
obligation in the method adopted will be revised/updated
on an ongoing basis.

During the initial stages of a contract, where the company
may not be able to reasonably measure the outcome of
a performance obligation and the company expects to
recover the costs incurred in satisfying the performance
obligation, revenue will be recognized only to the extent
of the costs incurred until such time that it can reasonably
measure the outcome of the performance obligation.

Contract modifications are accounted when additions,
deletions or changes are approved either to the contract
scope or contract price. The accounting for modifications
of contracts involves assessing whether the services added
to an existing contract are distinct and whether the pricing
is at the stand alone selling price. Where the goods or
services added are not distinct, adjustment to revenue is
made on a cumulative catch up basis. Where the goods or

services added are distinct, and such additional goods or
services are priced at standalone selling prices, the contract
modification is accounted for as a separate contract;
whereas if the modification is not priced at standalone
selling price, the same is accounted as a termination of the
existing contract and creation of a new contract.

The Company generally does not recognize any revenue
from additional work until it has been approved by the
customer. When the scope of work has been approved but
the impact on revenue is yet to be valued, the "variable
consideration" requirement (as explained below) will
apply. This entails recognizing revenue in an amount that
is unlikely to be reversed.

If the consideration promised in a contract includes variable
amounts like discounts, rebates, refunds, credits, price
concessions, liquidated damages or other similar items, the
Company estimates the net amount of consideration to which
the Company is entitled in exchange for transferring the
promised goods or services to a customer and accounts for the
same. The payment terms are based on milestones specified
in the respective contracts with customers. On achieving the
specified milestones these payments are released.

Revenue from Supply of Base & Depot Spares is recognized
based on the satisfaction of performance obligation at a
point in time on proof of receipt of goods from customer.

Unlike revenue recognition, amounts billed to the
customer are based on the various milestones reached
under the contract and on acknowledgement thereof by
the customer by means of a contractual document referred
to as a progress billing certificate. Therefore, the amounts
recognized as revenue for a given year do not necessarily
match those billed to or certified by the customer. For
contracts in which the revenue recognized exceeds the
amount billed or certified, the difference is recognized in
as "Contract Asset" under "Other Current Assets", while for
contracts in which the revenue recognized is lower than
the amount billed or certified, the difference is recognized
as "Contract Liability" under "Other Current Liabilities".

Other Operating Revenue with respect to sale of stock
items ,scrap and consultancy income is recognized at a
point in time when the company satisfies performance
obligations and right to receive the income is established
as per terms of the contract by transferring promised
goods and services to the customer.

Management fee is also recognized over a period of time.

b) Government Grants

Government grants are recognized when there is
reasonable assurance that the Company will comply with
the conditions attaching to them and that the grants
will be received.

Government grants are recognized in Statement of Profit
and Loss on a systematic basis over the periods in which
the Company recognizes as expenses, the related costs for
which the grants are intended to compensate. Where the
Grant relates to an asset value, it is recognized as deferred
income, and amortized over the expected useful life of
the asset. Other grants are recognized in the statement
of Profit & Loss concurrent to the expenses to which such
grants relate/ are intended to cover.

Ship Building Financial Assistance (SBFA) is recognized

over a period of time in proportion to the expenses / cost
incurred and classified under "other operating revenue".

Government grants that are receivable as compensation
for expenses or losses already incurred or for the purpose
of giving immediate financial support to the Company with
no future related costs are recognized in statement of
profit & loss in the period in which they become receivable.

c) Other income

i) Liquidated damages and interest on advances

No income is recognized on (a) interest on advances
given and (b) liquidated damages, where the levies
depend on decisions regarding force majeure
condition of contract. These are accounted for
on completion of contracts and / or when final
decisions are taken.

In the case of contracts entered into for execution of
capital works having long gestation period, where the
extant commercial terms of the contract provides for
provision of extending interest bearing mobilisation
advance to the service provider for mobilising various
resources for timely execution, mobilisation advances
are paid and interest is accounted on accrual basis.

ii) Accounting for insurance claims

(i) Warranty/Builder Risk claims

In the case of guarantee defects covered under
warranty insurance policies or claims under
Insurance Policies taken for ship building and

ship repair works, the insurance claims lodged
are recognized in the financial statements in the
year in which the survey is completed and the
probable amount of settlement is intimated by
the insurance Company.

(ii) Other Insurance Policies

In the case of other Insurance Policies like Asset
Insurance, Transit Insurance, Marine Insurance,
Cash Insurance etc., the claims are recognized
in the the financial statements on settlement of
the claims by way of receipt of the amount from
the Insurance Company.

In the case of Medical insurance, claims are
recognized on due basis, based on the claims
submitted with the insurance company.

Other items of income are accounted as and
when the right to receive such income arises
and it is probable that the economic benefits
will flow to the company and the amount of
income can be measured reliably.

11 Employee benefits

Employee benefits consist of salaries and wages,
contribution to provident fund, superannuation fund,
gratuity fund, towards medical assistance, which are short
term in nature and contribution towards compensated
absences, which is long term in nature.

Post-employment benefit plans
i) Defined Contribution plans

Defined contribution to Employees Pension scheme
for eligible employees is made to National Pension
Scheme (NPS) and are charged as expense as they
fall due. Such benefits are classified as Defined
Contribution Schemes as the Company does not
carry any further obligations, apart from the
contributions made.

The Company makes contributions to the Cochin
Shipyard Employees Mutual Public Welfare Trust
and Employees Medical Assistance Trusts, which
are charged as expense, as and when they fall due.
Such benefits are classified as Defined Contribution
Schemes as the Company does not carry any further
obligations, apart from the contributions made.

Gratuity

The Company provides for gratuity, a defined benefit
retirement plan covering eligible employees. The
fund is managed by the trustees of the Cochin
Shipyard Ltd Group Gratuity Trust .The liability or
asset recognized in the balance sheet in respect
of its defined benefit plan is the present value of
the defined benefit obligation at the end of the
reporting period less the fair value of plan assets. The
defined benefit obligation is calculated periodically
by actuaries using the projected unit credit method.

The present value of the said obligation is determined
by discounting the estimated future cash outflows,
using market yields of government bonds that have
terms approximating the terms of the related liability.

The interest income / (expense) are calculated
by applying the discount rate to the net defined
benefit liability or asset. The net interest income /
(expense) on the net defined benefit liability or asset
is recognised in the Statement of Profit and loss.

Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in which they
occur, directly in other comprehensive income. They
are included in retained earnings in the Statement of
Changes in Equity and in the Balance Sheet.

Changes in the present value of the defined
benefit obligation resulting from plan amendments
or curtailments are recognised immediately in
Statement of profit and loss as past service cost.

Provident Fund and Pension Scheme

The Company also makes contribution towards
provident fund. The provident fund is administered
by the Trustees of the Cochin Shipyard Limited
Employees Contributory Provident Fund Trust. The
rules of the Company's provident fund administered
by the Trust, require that if the Board of Trustees
are unable to pay interest at the rate declared by
the Government under para 60 of the Employees'
Provident Fund Scheme, 1952, then the deficiency
shall be made good by the Company. The deficiency,
if any assessed by the Company based on actuarial
valuation will be provided for in the accounts.

Other employee benefits
Compensated absences

The Company has a policy on compensated absence
which are both accumulating and non-accumulating
in nature. The expected cost of accumulating
compensated absence is determined by Actuarial
valuation performed by an independent actuary at
each Balance Sheet date using projected unit credit
method on the additional amount expected to be
paid/availed as a result of unused entitlement that
has accumulated at the Balance Sheet date. Expense
on non-accumulating compensated absence is
recognised in the period in which the absences occur.

3.12 Taxes on Income

a) Income tax

Income tax expense comprises current tax expense
and the net change in the deferred tax asset or liability
during the year.

Current and deferred taxes are recognized in Statement of
Profit and Loss, except when they relate to items that are
recognized in other comprehensive income or directly in
equity, in which case, the current and deferred tax are also
recognized in other comprehensive income or directly in
equity, respectively.

The Company has determined that interest and
penalties related to income taxes, including uncertain
tax treatments, do not meet the definition of income
taxes, and therefore accounted for them under Ind AS 37
Provisions, Contingent Liabilities and Contingent Assets.

b) Current tax

Current tax is measured at the amount of tax expected
to be payable or receivable on the taxable income or
loss for the year and any adjustment to the tax payable
or receivable in respect of previous years as determined
in accordance with the provisions of the Income Tax Act,
1961. The amount of current tax payable or receivable is
the best estimate of the tax amount expected to be paid
or received that reflects uncertainty related to income
taxes, if any. It is measured using the tax rates enacted or
substantively enacted at the reporting date.

Current tax assets and current tax liabilities are offset,
when there is a legally enforceable right to set off the
recognized amounts and there is an intention to settle the
asset and the liability on a net basis.

Deferred tax is recognized using the Balance Sheet
approach. Deferred tax assets and liabilities are recognised
for deductible and taxable temporary differences arising
between the tax base of assets and liabilities and their
carrying amount, except when the deferred tax arises
from the initial recognition of an asset or liability in a
transaction that is not a business combination and affects
neither accounting nor taxable profit or loss at the time of
the transaction.

Deferred tax assets are recognised only to the extent that
it is probable that either future taxable profits or reversal
of deferred tax liabilities will be available, against which the
deductible temporary differences, and the carry forward
of unused tax credits and unused tax losses can be utilised.

The carrying amount of a deferred tax asset shall be
reviewed at the end of each reporting date and reduced
to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised. Unrecognized
deferred tax assets are re-assessed at each reporting
date and are recognized to the extent that it has become
probable that future taxable profits will allow the deferred
tax assets to be recovered.

Deferred tax relating to items recognized outside profit
or loss is recognized outside profit or loss (either in other
comprehensive income or in equity).

Deferred tax assets and liabilities are measured using
the tax rates and tax laws that have been enacted or
substantively enacted by the end of the reporting period
and are expected to apply when the related deferred tax
asset is realised or the deferred tax liability is settled.

Deferred tax assets and liabilities are off set when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the
same taxation authority.

3.13 Operating Segments

Operating segments are defined as components of an
enterprise for which discrete financial information is
available that is evaluated regularly by the chief operating
decision maker, in deciding how to allocate resources and
assessing performance. The Company's chief operating
decision maker is the Chairman & Managing Director.

The Company has identified business segments (industry
practice) as reportable segments. The business segments
comprise: 1) Ship Building and 2) Ship Repair.

Segment revenue, segment expenses, segment assets and
segment liabilities have been identified to segments on the
basis of their relationship to the operating activities of the
segment. Revenue, expenses, assets and liabilities which
relate to the Company as a whole and are not allocable to
segments on a reasonable basis have been included under
"unallocated revenue / expenses / assets / liabilities".

3.14 Recent Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. During the year ended March 31, 2025,
MCA has notified Ind AS 117 - Insurance Contracts and
amendments to Ind As 116 - Leases , relating to sale and
lease back transactions, applicable from April 1, 2024. The
Company has assessed that there is no significant impact
on its financial statements.

On May 9, 2025, MCA notifies the amendments to Ind AS
21- Effects of Changes in Foreign Exchange Rates. These
amendments aim to provide clearer guidance on assessing
currency exchangeability and estimating exchange
rates when currencies are not readily exchangeable. The
amendments are effective for annual periods beginning
on or after April 1, 2025. The Company is currently
assessing the probable impact of these amendments on its
financial statements.

a) Freehold Land includes the value of (a) land allotted on lease basis to (i) Bharatiya Vidya Bhavan (0.69045 hectare) (ii) M/s Indian
Oil Corporation Ltd (0.620 hectare) for laying pipeline (iii) land leased to M/s Kochin Air Products (0.30 hectare) and (b) land
leased to Kerala State Electricity Board (0.47 hectare).

b) Value of land includes value of buildings acquired along with the land for which depreciation has not been provided as the value
is not separately available and most of these buildings are likely to be demolished for putting up facilities for the factory.

c) Freehold land includes landed properties of the Company admeasuring 197.12 ares (487.00 cents) made up of 34.30 ares in Sy
No. 713/11, 23.57 ares in Sy No. 713/12, 59.12 ares in Sy No. 713/13, 50.18 ares in Sy No. 714/06, 10.12 ares in Sy No. 714/2,
8.90 ares in Sy No. 714/4 and 10.93 ares in Sy No. 714/5 of land all are lying contiguously in Elamkulam village, Kanayannur taluk,
Ernakulam Dist, Kerala provided as security for issue of Tax free bonds.

d) The company has bearer plants in its premises and other sites which generates nominal income .Cost of such bearer plants
cannot be reliably measured and hence these plants were not capitalized.

e) Title deeds of all immovable properties (ie freehold land) are held in the name of the Company.

f) In the case of following properties where the Company is the lessee, lease agreements are duly executed in favour of the lessee
with the following exceptions:

1. The Company has taken 8.12 HA of land (re-measured as 8.1164HA) and 15 HA of water body on lease from Cochin Port
Authority ( CoPA) on 12 April 2013 (1st phase) .CSL has also taken 8.134 HA of additional land area on lease from CoPA on
16 Nov 2017 (2nd phase).Two lease agreements (ie 1st phase allotment of land/waterbody and 2nd phase allotment of
land) were entered between CSL & CoPA and both lease deeds have not been registered.

2. The company has executed concessionaire agreements with the Mumbai Port Trust(MBPT) and Syama Prasad Mukherjee
Port (SMPT) to Upgrade,Operate and Manage Ship Repair facility at Hughes Dry Dock and specified berths at Indira Dock
of MBPT and two dry docks and Berth No.6 of Netaji Subash Dock of SMPT respectively.

The project site at MBPT is taken on license for 29 years. The license agreement is yet to be registered, as a request
submitted for waiver of the stamp duty to the Government of Maharashtra is under consideration.

The project site at Syama Prasad Mukherjee Port is taken on license for 30 years .As license agreement does not attract
stamp duty and registration charges in West Bengal ,Concession Agreement with SMPT has not been registered .

g) The Right to use of land and ship repair facility represents the upfront fee paid to Cochin Port Trust towards setting up of
International Ship Repair Facility (ISRF) project, to be amortised over the period of lease which was further extended based on
the date of obtaining of Environmental Clearance. As all environmental clearances for ISRF are obtained as on January 09, 2018,
the lease period of 30 years effectively starts from this date.

h) Staff quarters at Kolkata held in the name of Syama Prasad Mookerjee Port Authority has been allotted to CSL. Lease agreement
is yet to be executed.

i) Registration is pending in case of following leasehold properties:

j) As at 31 March 2025, plant and equipment with a carrying amount of H403.40 lakhs (previous year H465.55 lakhs) were
temporarily idle, but the company plans to operate the assets in FY 2025-26.

k) The Gross carrying value of assets of H17918.81 lakhs (previous year H1 2,938.36 Lakhs) have been fully depreciated, but
still are in use.

l) Additions on Plant & Equipments includes capital expenditure on Research & development relating to R&D centre amounting
to H2.83 lakhs (previous year H25.95 lakhs relating to welding technology)

m) During the financial year the Company has capitalised major Projects "International Ship Repair Facility " and "New Dry Dock" for
an amount of H79344.26 lakhs and H131938.92 lakhs respectively.

Depreciation on these assets has been calculated considering the useful lives as determined by the management based on
technical estimates made. The adopted useful lives are detailed in the table below;

lerms & Rights attached to Equity shares: Ihe Company has only one class or equity shares having a face value of per share which
is fully paid up. Equity shareholders are eligible for one vote per share held, and are entitled to dividends as and when declared
by the Company. Interim dividend is paid as and when declared by the Board. Final dividend proposed by the Board of Directors
is subject to approval/regularisation by the share holders in the Annual General meeting. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion
to their shareholding.

Sub-division & Other information:

On 10 Jan 2024, the Company sub-divided every 1 (one) Equity Share of the nominal/face value of H10/- each into 2 (Two) Equity Share
of the nominal/face value of H5/- each.

In October 2024, the Government of India sold 1,30,15,689 (4.95%) equity shares out of its 19,16,86,928 (72.86%) equity shares
held in Cochin Shipyard Limited (CSL) by way of Offer for Sale (OFS) through the Stock Exchange mechanism in accordance with
the applicable SEBI guidelines. Consequently, the Government of India's shareholding in Company stands at 17,86,71,239 (67.91%)
equity shares as on March 31, 2025.

Movement or eacn item in utner Equity is detailed in Statement or Changes in Equity

Capital Reserve: Capital reserve includes H263.56 lakhs being restoration charges received from M/s. Indian Oil Corporation Ltd for
laying pipe line through the Company's land.

Capital Redemption Reserve: Capital Redemption Reserve of W 12353.76 lakhs includes W 11914.20 lakhs being reserves created
on redemption of preference shares and W 439.56 lakhs being a sum equal to the nominal value of the shares bought back, which will
be utilised for the purpose defined under the Companies Act 2013.

Securities Premium: Premium on tax free bonds is amortised on straight line basis over the period of bonds. The company had completed
the Initial Public Offer (IPO) during 2017-18 and had allotted 22656000 equity shares of H10 each at premium ( H93929.76 lakhs).
Expenses incurred net of deferred tax adjustment towards such allotment of shares amounting H777.93 lakhs has been debited in
Securities Premium in accordance with the requirements of Indian Accounting Standard (Ind AS) 32- Financial Instruments.

General Reserve: General reserve is primarily created to comply with the requirements of section 123(1) of the Companies Act,
2013. This is a free reserve and can be utilised for any general purpose like issue of bonus shares, payment of dividend, buy back of
shares etc. The Company created a General reserve in earlier years pursuant to the provisions of the Companies Act,1956 where in
certain percentage of profits were required to be transferred to General reserve before declaring dividends. As per the Companies
Act 2013, the requirements to transfer profits to General reserve is not mandatory.

Cash flow Hedge Reserve: Cash flow hedge reserve represents the effective portion of change in the fair value of designated
hedging instruments recognised in the Other Comprehensive Income. (Refer Note No. 45)

Interim dividend : During the year, the Company paid interim dividends of H4.00 per equity share of face value of H5 and H3.5 per equity
share of face value of H5, as recommended at the board meetings held on November 7, 2024 and February 06, 2025 respectively.

Proposed dividend : The Board of Directors of the Company have recommended a final dividend of H2.25 per equity share of face
value of H5 for the financial year ended March 31, 2025 at the Board meeting held on May 15, 2025. This is subject to approval/
regularisation by the share holders in the Annual General meeting.

Tax Free Infrastructure Bond Series 2013-14

a) Tranche 1: 1000 bonds of face value of ?10 lakhs totalling ?10000 lakhs with interest rate of 8.51% payable annually , redeemable
at par, redeemed on 02nd December 2023.

b) Tranche 2: 230 bonds of face value of ?10 lakhs totalling ? 2300 lakhs with interest rate of 8.72% payable annually, redeemable
at par, due for redemption on 28th March 2029 .

These bonds are secured against the landed properties of the Company admeasuring 197.12 ares (487.00 cents) made up of 34.30
ares in Sy No. 713/11, 23.57 ares in Sy No. 713/12, 59.12 ares in Sy No. 713/13, 50.18 ares in Sy No. 714/06, 10.12 ares in Sy No. 714/2,
8.90 ares in Sy No. 714/4 and 10.93 ares in Sy No. 714/5 of land all are lying contiguously in Elamkulam village, Kanayannur taluk,
Ernakulam Dist, Kerala.

Utilisation : Out of the issue proceeds of ?12300 lakhs received, the Company has fully utilised/adjusted funds towards various
expenditure incurred on International Ship Repair Facility (ISRF) project.

Difference between carrying amounts and fair values of financial liabilities of borrowings is not significant in each of the year presented.

1. Revenue is recognized when the company satisfies performance obligations by transferring promised goods and services to
the customer over a period of time using output method based on measurement of physical performance completed to date.
Output method faithfully depicts the Company's performance towards complete satisfaction of the performance obligation and
gives a clear picture of Company's efforts and hence the same is being adopted to depict the performance completed to date

2. Refer Note No 43 on Ind AS 115 "Revenue from Contract with Customers".

3. Out of the Revenue from Operations, H 53,436.82 lakhs (H 23140.03 lakhs in previous year) pertain to revenue from export orders.

4. The Company has considered the lock down period due to COVID 19 & Gol circular dated May 13, 2020, which ever is applicable
to the projects and Kerala Flood natural calamity 2018 as Force Majeure period for computation of Liquidated Damages while
calculating Revenue from operations.

5. The Company is executing shipbuilding contracts with the Andaman & Nicobar (A&N) Administration for the construction of two
1200-passenger vessels (yard nos. SH.0023 and SH.0024). The contractual delivery dates, as extended, have expired for both
vessels as on 29 April 2023 for vessel SH.0023, and 30 October 2023 for vessel SH.0024.

The two vessels are customized and designed for specific operations between Andaman Islands and Main Land. Subsequently
based on a request from the A&N Administration, the Company has abated delivery activity, as the Administration has sought
reallocation of the vessels to other prospective buyers. However, such reallocation would necessitate significant technical
modifications and cost, and the vessels, in their current state, are considered to have no alternative use.

Given that the Company continues to have a valid and enforceable contract with the A&N Administration, and there is no current
mutual termination or novation of the contract, no additional provision for LD has been recognized beyond 29 April 2023 and 30
October 2023, respectively, for SH.0023 and SH.0024 for reason of abated delivery at the request of the buyer. In accordance
with the terms of the contract and based on prudent estimates, the Company has recognized provision for liquidated damages
(LD) up to the aforementioned dates.

The Company continues to monitor developments related to this contract and will review its accounting estimates and
provisioning requirements in subsequent periods as more information becomes available.

The cumulative percentage of completion for the two vessels as on 31.03.2025 is 54.84 percent for SH.0023 and 55.19 percent
for SH.0024. The total liquidated damages for SH.0023 is H. 11814.08 lakhs and for SH.0024 is H. 9756.34 lakhs up to the financial
year 2024-25. The Company has recognized revenue to the tune of H. 16943.66 lakhs towards SH.0023 and H. 17156.89 lakhs
towards SH.0024 upto 31.03.2025 after considering the liquidated damages.

6. The Government of India provides Ship Building Financial Assistance (SBFA) to promote domestic shipbuilding. This scheme is

aimed at compensating the cost incurred in the construction of vessels and not for any operational losses.

In accordance with the SBFA policy guidelines, financial assistance is available only for vessels that are constructed and delivered
within the stipulated period and are covered under an in-principle approval obtained from the Directorate General of Shipping.
The Company recognizes SBFA income over the construction period of the eligible vessels, in proportion to the cost incurred,
provided the conditions under the policy are met or are reasonably expected to be met.

Where there is uncertainty regarding compliance with any of the policy conditions, such as delays in construction or delivery
timelines resulting in non-fulfilment of eligibility criteria, the Company either does not recognize the SBFA income or
derecognizes the income previously recognized, as appropriate. Such contingencies are assessed regularly, and necessary
accounting adjustments are made to reflect the revised expectations.

During the current financial year based on the amendment by MoPSW granting additional time for delivery of vessels affected
by the Covid pandemic, the Company has re-recognised the financial assistance amounting to H.822.29 Lakhs in respect of
delivered vessels as income for the current year. Out of claim made to the Government of the re-recognised of H. 822.29 lakhs,
the Company has realized H.404.03 Lakhs and the balance amount of H. 418.26 lakhs is yet to be realised.

With regard to vessels under construction, the Company has recognized financial assistance income of H.10,309.45 lakhs towards
Ship Building Financial Assistance from Govt. of India, in order to compensate the cost incurred by the company in building the
vessels. Further, the Company has reversed H. 890.01 lakhs due to revision in expected delivery dates of the vessels which
resulted in non-fulfilment of the stipulated conditions under the SBFA policy. As on the reporting date, the cumulative income
accrued amounting to H. 13546.03 lakhs account of financial assistance is subject to the fulfilment of conditions stipulated in
the Guidelines for Shipbuilding Financial Assistance Policy (SBFAP), as amended from time to time.

7. Cochin Shipyard Ltd (CSL) has entered into an Agreement with the Andaman and Nicobar Administration to commence its
operations at Marine Dockyard, at Port Blair, a facility that is currently being operated directly by the A&N Administration.
Management fee on pro rata basis is accounted based on this agreement. In addition to Management fee, Consultancy fee for
technical assistance in preparation of DPR relating to Augmentation & Modernisation plan for Marine Dockyard is also accounted
as per the agreement with A&N Administration. Under the ambit of this Agreement signed on 28 Nov 2019, CSL shall assist the
Administration to set up a Ship repair ecosystem at A&N islands. CSL shall also focus efforts towards Skill Development in the
Islands in consultation with the Administration and Technical Institutions located in the Islands.

8. Disclosure pursuant to CAG audit observation

The company reassesses the measurement progress of its performance obligation under the output method as mandated
by Ind AS 115 at every reporting date. During the year, the company noticed that on application of Ind AS 21, the existing
measurement resulted in variations in faithful representation of revenue in the case of export contracts denominated in foreign
currency. In order to address the same, the Company refined its quantification approach for the said contracts. Revenue is
recognised by applying the physical completion percentage on the total transaction price, which the company is entitled to,
without bifurcating between material and service portions. The effect of change in the quantification measure in the current
year has resulted in increase in revenue from operations of about Rs. 11808.65 lakhs. The Company intends to consistently
adopt this measurement technique in recognising revenue for contracts involving similar performance obligations.

Contribution to Provident Fund and Family Pension Fund includes provident fund inspection and administration charges W 28.07 lakhs
(previous year W 27.92 lakhs).

Salaries, Wages, bonus/exgratia and allowances includes provision for encashment of half pay compensated absences for workmen
amounting to W 103.82 lakhs (previous year W 65.87 lakhs).

The employee benefits accruing to the employees on deputation from Cochin Port Trust and Mumbai Port Trust are being accounted
based on demands received from Cochin Port Trust & Mumbai Port Trust as per tripartite agreement between the Company, Cochin
Port Trust & Mumbai Port Trust and the recognised Trade unions of the Port and not based on actuarial valuation except for gratuity
which is actuarially valued.

Post-employment obligations
Provident fund

Provident Fund for eligible employees is managed by the Company through a trust in line with the Provident Fund and Miscellaneous
Provision Act,1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the
employees and employer @12% of basic salary (including Dearness Allowance) together with the interest accumulated thereon are
payable to employees at the time of separation from the Company or retirement whichever is earlier.

The benefits vests immediately on rendering of the services by the employee. The contribution is charged to Statement of Profit and
Loss of the year when the contributions to the respective funds are due in accordance with relevant statute. Employer's contribution
to Provident Fund & Pension fund is H.2076.29 Lakhs for the year 2024-25 (H.1693.55 Lakhs for the year 2023-24). The minimum
interest rate payable by the trust to the beneficiaries every year is notified by the Government. The Company has an obligation to
make good the shortfall, if any, between the return from the investments of the trust (including investment risk fall) and the notified
interest rate, which is determined on the basis of actuarial valuation.

The Company has obtained report on the determination and disclosure of interest rate Guarantee, valuation of Assets & Liabilities as
per Ind AS 19 of Employees Benefits relating to Exempt Provident Fund for the period ended 31st March 2025.

a) USHUS is a start-up support program of CSL in association with Indian Institute of Management Kozhikode (IIM K) & Indian
Institutes of Technology Madras (IIT) to augment the Government of India's initiatives to encourage and develop an ecosystem
in India to support Maritime Start-ups. As part of this program maritime start-ups will receive seed funds from CSL as grants/
investments. IIMK LIVE & IIT Madras will review and recommend the proposals received under this scheme for investment by
CSL. Fee for their services amounts to H.26.50 lakhs current year (Previous Year - H 7.00 lakhs). H.105.00 Lakhs has been disbursed
to 9 start ups identified by IIM K under seed funding scheme during the F.Y 2024-25.

b) M/s Boston Consulting group was entrusted with preparation of detailed report for Setting up of Ship repair cluster in Kochi
(Phase-II) with MoPSW's Maritime India Vision-2030 for an amount of H 343.00 lakhs. M/s Boston Consulting group is also
entrusted for preparation of detailed report for Setting up of Ship repair business in Vadinar, Gujrat in India for an amount of
H 343.00 lakhs. H 686.00 lakhs has been charged to Profit and loss account during current year.

c) Design, development, Construction activities of Fully Indigenous Autonomous Surface Vessel (ASV) Pilot Project under the
Aatma Nirbhar Bharat procurement model. The project is being executed with a total estimated project cost of ?4000.00 lakhs.
The Ministry of Ports, Shipping and Waterways (MoPSW) has sanctioned a grant-in-aid of ?2000.00 lakhs towards the design and
development of this project under R&D (Shipping) Scheme.

Company has received grant of H 925.07 lakhs during the year, out of which H 314.28 lakhs was utilized towards ASV project
and balance H 610.78 lakhs is lying under Central Nodal Account maintained by the Sagarmala Development Corporation
Limited(SDCL). In addition to the grant amount utilised H 314.28 lakhs, Company has also incurred overhead and other
expenditure of H 41.20 lakhs towards the project .Hence the cumulative cost incurred towards ASV project for the year is
H 355.48 lakhs and same has been charged as Research & development expenditure in the Statement of Profit and Loss for the
year ended 31 March 2025.

d) The Company is engaged in a pilot Research and Development project for construction of a Hydrogen Fuel Cell Electric
Vessel (HFCEV), pursuant to approval by the Research Committee of the Ministry of Ports, Shipping and Waterways (MoPSW),
Government of India. A work order was issued to the Company wherein 75% of the project cost being funded by the MoPSW,
under the ambit of the National Hydrogen Mission and Atmanirbhar Bharat initiative. All the assets acquired from the grant will
be the property of the Government of India and the funds released for such projects or schemes in one or more installments are
not treated as Grants-in-aid in the books of the implementing agency.

In the parallel, the Company also entered into a Memorandum of Understanding (MoU) with the Inland Waterways Authority
of India (IWAI) to develop, design, construct, and supply the vessel, with an intention to transfer title and ownership through a
separate agreement.

During the previous financial year (FY 2023-24), based on management's expectations of an near-term sale to IWAI, the cost
incurred (net of grant received) was presented under Non-Current Assets. However, as of 31 March 2025, no further progress
has been made in formalizing the sale arrangement, and the vessel continues to remain under demonstration phase. Given
the absence of reasonable certainty regarding the timing and realisation of the proceeds from IWAI , the management has
reassessed the accounting treatment.

Accordingly, in compliance with the principles of prudence the Company has recognized the net cost incurred H 925.14 lakhs (ie.
cost incurred less grant received) as Research and Development (R&D) expenditure in the Statement of Profit and Loss for the
year ended 31 March 2025.Cost incurred during 2024-25 is H 837.78 lakhs.

Financial Risk Management Objective and Policies:

The Company's principal financial liabilities, other than derivatives, comprise of loans and borrowings, trade and other payables
and advances from customers. The Company's principal financial assets include Investment, loans and advances, trade and other
receivables and cash and bank balances that derive directly from its operations. The Company is exposed to market risk, credit risk
and liquidity risk. The Company's senior management oversees the management of these risks. The Board provides written principles
for overall risk management as well as policies covering specific areas such as foreign exchange risk, interest rate risk, credit risk, the
use of derivative financial instruments and non-derivative financial instruments, and the investment of excess liquidity. The Company
does not enter into or trade financial instruments, including derivatives for speculative purposes.

Market Risk

Market risk is the risk that the fair value of future cash flows of financial assets will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk, being mainly commodity price
risk. Financial Assets affected by market risk include loans and advances, deposits and derivative financial instruments.

A. Interest rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company's exposure to the risk of changes in market interest rates is minimal since the exposure
relates primarily to the Company's long-term debt obligations of redeemable non-convertible bonds with fixed interest rates as
disclosed in Note 23 . With the current profile of fixed rate borrowing, the company is not sensitive to interest rate fluctuations.

B. Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's
operating activities (when revenue or expense is denominated in a foreign currency).

Foreign currency risk of the company is managed through a properly documented risk management policy approved by the
board. The Board of directors also reviews the foreign currency exposure of the Company on quarterly basis. The company
manages the net foreign currency risk mainly by entering into forward contracts with the bank as the counter party. The
disclosures of outstanding forward contract as on reporting date is given in Note 45.

Note 63. The Company has entered agreement with Andaman & Nicobar Administration on a long term license basis for a period of
30 years from November 2019 onwards for developing, designing, constructing, modernising, operating, maintaining and managing
the existing shiprepair facility which is named as CSL-AN Ship Repair Unit (CANSRU).

Note 64. There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.

Note 65. 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(s) or entity(ies), including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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. No funds have been received by the Company from any person(s)
or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that
the Company shall, 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.

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the company shall (i) 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 (ii) provide
any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Note 66. The company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence disclosures
relating to it are not applicable.

Note 67. In the case of contracts/ sub-contracts, wherever final bills are not submitted by the contractors for the work done as at
the close of the year, liability is estimated and provided based on the work done.

Note 68. The Company has made adequate provision towards material foreseeable losses wherever required, in respect of long
term contracts. The Company do not have any long term derivative contracts for which there were any material foreseeable losses.

Note 69. Fig ures in brackets denote negative figures.

Note 70. Previous year figures have been regrouped and reclassified wherever necessary to conform to the current year presentation.

The accompanying notes are an integral part of these financial statements
As per our report attached

For M/s Anand & Ponnapan For and on behalf of Board of Directors

Chartered Accountants
(Firm Registration No.000111S)

SYAMKAMAL N BEJOY BHASKER

Company Secretary Director (Technical)

(Membership Number: A25337 ) DIN - 08103825

C. Krishnan Menon JOSE V J MADHU S NAIR

Partner Director (Finance) & Chief Financial Officer Chairman and Managing Director

(Membership Number: 074736) DIN - 08444440 DIN - 07376798

Kochi dated May 15, 2025 Kochi dated May 15, 2025