Note 27: Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to theChief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocatingresources and assessing performance of the operating segments, has been identified as the ManagingDirector of the Company. The Company operates only in one Business Segment i.e. offshore business andthe activities incidental thereto within India, hence does not have any reportable Segments as per IndianAccounting Standard 108 "Operating Segments".
Note 28: Leases
Rental Charges of Rs. 7.70 Lakhs pertains to either short term lease or low value assets and hence notconsidered for Right-of-Use assets.
Note 29 - Additional Regulatory Information required by Schedule III
a) Details of Benami Property held
No proceedings have been initiated on or are pending against the company for holdingbenami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) andRules made thereunder.
b) Borrowing secured against current assets
The Company does not have borrowing from banks on the basis of current assets.
c) Wilful Defaulter
The Company has not been declared wilful defaulter by any bank or financialinstitutions or government or any government authority.
d) Relationship with struck off Companies
The Company has no transactions with the companies struck off under theCompanies Act, 2013.
e) Compliance with number of layer of Companies
The Company has complied with the number of layers prescribed under theCompanies Act, 2013.
f) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has anaccounting impact on current of previous financial year.
g) Utilisation of Borrowed funds and Share premium
No funds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds by the Company to or in any other personor entity, including foreign entities ("Intermediaries") with the understanding, whetherrecorded in writing or otherwise, that the Intermediary shall lend or invest in partyidentified by or on behalf of the Company (Ultimate Beneficiaries). The Company has notreceived any fund from any party (Funding Party) with the understanding that the Companyshall whether, directly or indirectly lend or invest in other persons or entities identified byor on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, securityor the like on behalf of the Ultimate Beneficiaries.
h) Undisclosed Income
There is no income surrendered or disclosed as income during the current or previous yearin the tax assessments under the Income Tax Act, 1961, that has not been recorded in thebooks of account.
i) Details of Crypto currency of virtual currency
The Company has not traded or invested in crypto currency or virtual currencyduring the current or previous year.
j) Valuation of PP&E, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-useassets) or intangible assets during the current or previous year.
k) Title deeds of immovable properties not held in name of the company
The title deeds of all the immovable properties are held in the name of theCompany.
l) Registration of charges or satisfaction with Registrar of Companies
There are no charges or satisfaction which are yet to be registered with the Registrarof Companies beyond the statutory period.
m) Core Investment Company (CIC)
The Company is not a CIC and the Company is not part of any group.
Note 31 - Capital Management and Financial Risk Management Strategies
Capital
Management
The Company being in a capital-intensive industry, its objective is to maintain a strong credit ratinghealthy and establish a capital structure that would maximise the return to stakeholders throughoptimum mix of debt and equity
The Company's capital requirement is mainly to fund its capacity expansion, repayment of principaland interest on its borrowings and strategic acquisitions. The principal source of funding of theCompany has been, and is expected to continue to be, cash generated from its operationssupplemented by funding from bank borrowings and the capital markets. The Company is notsubject to any externally imposed capital requirements.
The Company regularly considers other financing and refinancing opportunities to diversify its debtprofile, reduce interest cost and align maturity profile of its debt commensurate with life of theasset and closely monitors its judicious allocation amongst competing capital expansion projectsand strategic acquisitions, to capture market opportunities at minimum risk.
Financial Risk Management
The Company's business activities expose it to a variety of financial risks, namely liquidity risk,market risks and credit risk. The Company's senior management has the overall responsibility forthe establishment and oversight of the Company's risk management framework.
i) Price Risk
Price is negotiated in advance with the customers for a considerable time span, to provide marinesupport as per their requirements. The rate is fixed for per operational day and can fluctuatebecause of breakdowns.
ii) (a)Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in market interest rates. The Company's exposure to the risk ofchanges in market interest rates relates primarily to the Company's long-term debt obligationswith floating interest rates. The risk is managed by the Company by maintaining an appropriatemix between fixed and floating rate borrowings.
(b) Interest Rate Sensitivity
The sensitivity analyses below have been determined based on the exposure to interest rates fornon-derivative instruments at the end of the reporting period. For floating rate liabilities, theanalysis is prepared assuming the amount of the liability outstanding at the end of the reportingperiod was outstanding for the whole year. A 50-basis point increase or decrease is used whenreporting interest rate risk internally to key management personnel and represents management'sassessment of the reasonably possible change in interest rates.The following table provides a break-up of the Company's fixed and floating rate borrowings
iii) Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resultingin financial loss to the Company. The Company has adopted a policy of only dealing withcreditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means ofmitigating the risk of financial loss from defaults. The Company's exposure and the credit ratingsof its counterparties are continuously monitored.
Ultimate responsibility for liquidity risk management rests with the board of directors, which hasestablished an appropriate liquidity risk management framework for the management of theCompany's short-term, medium-term and long-term funding and liquidity managementrequirements. The Company manages liquidity risk by maintaining adequate reserves, bankingfacilities and reserve borrowing facilities, by continuously monitoring forecast and actual cashflows, and by matching the maturity profiles of financial assets and liabilities.
Note 30: Fair Value Hierarchy andMeasurements
The management assessed that cash and cash equivalents, trade receivables,trade payable, short term borrowings, bank overdrafts and other currentliabilities approximate their carrying amounts largely due to the short termmaturities of these instruments and are thus measured at amortised cost.