Shahi Shipping Limited Reports Related Party Transactions Worth ₹24.47 Crores for H1 FY25

Shahi Shipping Limited has disclosed detailed related party transactions for the half-year ended March 31, 2024, revealing comprehensive financial dealings worth ₹24.47 crores across multiple entities and individuals. The disclosure covers transactions with related companies, key management personnel, and their relatives, providing transparency into the company's inter-entity financial relationships.

Major Related Entity Transactions

The company's most significant transactions occurred with India First Logistics Ltd, a related entity connected through common directors. The financial dealings with this entity encompassed multiple transaction types:

The loan repayment of ₹1.58 crores to India First Logistics Ltd represents the largest single transaction, significantly reducing the outstanding balance from ₹1.88 crores to ₹50.06 lakhs. Additionally, the company took a fresh loan of ₹20.18 lakhs during the reporting period, with all loan arrangements being interest-free and unsecured.

Transactions with Shahi Gasol Ltd

Shahi Gasol Ltd, another related entity with common directors, was involved in financial transactions totaling ₹17.01 lakhs during the period:

The interest payable amount of ₹16.61 lakhs indicates ongoing borrowing arrangements with this related entity, with the loan carrying a 12% interest rate, unlike the interest-free arrangements with India First Logistics Ltd.

Key Management Personnel Compensation

The company reported remuneration payments to key management personnel and their relatives during the half-year period:

• Sarvesh Kumar Shahi (Promoter and Director): ₹30.00 lakhs in remuneration, with balances moving from ₹2.80 lakhs opening to ₹6.23 lakhs closing
• Somesh Kumar Shahi (Relative of Director): ₹3.00 lakhs in remuneration, with balances decreasing from ₹1.78 lakhs to ₹43,100

Additionally, the company recorded an advance transaction of ₹25.00 lakhs with promoter-director Sarvesh Kumar Shahi, which was fully settled during the period, reducing the balance from ₹25.00 lakhs to zero.

Minor Related Party Dealings

Royal Logistics Ltd, connected through common directors, had minimal transaction activity during the period. The company reported a loan repayment of zero value, with a negative balance of ₹48,100 maintained throughout the period, suggesting a credit position in favor of Shahi Shipping Limited.

Transaction Characteristics

All loan arrangements disclosed in the related party transactions share common characteristics of being unsecured and primarily interest-free, except for dealings with Shahi Gasol Ltd which carries a 12% interest rate. The transactions demonstrate active financial relationships between Shahi Shipping Limited and its related entities, with significant loan repayments and ongoing business arrangements forming the core of these inter-entity dealings.