Transworld Shipping Lines Limited has disclosed receiving a significant GST demand order from tax authorities, marking a regulatory development that requires investor attention under stock exchange compliance norms.

GST Order Details

The company received an order under Section 73(9) of the CGST/MGST Act, 2017, passed by the Deputy Commissioner of State Tax, Maharashtra. This order relates to GST audit proceedings for the financial year 2021-22.

Financial Impact

The aggregate demand specified in the order amounts to ₹10,25,84,579, which includes multiple components:

• Tax amount
• Interest charges
• Penalty components

The total demand of approximately ₹10.26 crores represents the cumulative liability as assessed by the tax authorities for the audit period.

Company's Response Strategy

Transworld Shipping Lines has outlined its approach to address this tax demand:

• Legal Challenge: The company believes it has strong grounds to contest the order
• Appeal Process: Management plans to file an appeal before the appropriate appellate authority
• Timeline Compliance: The appeal will be submitted within prescribed regulatory timelines
• Financial Assessment: Company does not expect any material financial impact

Regulatory Compliance

This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has fulfilled its obligation to inform stock exchanges and investors about this regulatory development.

The company has made detailed information available on its website and submitted the required documentation to BSE and NSE. This development represents a regulatory matter that the company is addressing through established legal channels, with management expressing confidence in their position to contest the demand.

Transworld Shipping Lines Limited (formerly known as Shreyas Shipping and Logistics Limited) has announced its financial results for the second quarter of fiscal year 2025-26, revealing a challenging period for the shipping company. The results, approved by the company's Board of Directors on November 11, 2025, show a significant downturn in performance compared to the same period last year.

Financial Highlights

Key Factors Affecting Performance

The company's performance was impacted by several factors:

1. Revenue Decline: Consolidated revenue fell to ₹98.00 crores from ₹125.00 crores in the previous year's corresponding quarter, marking a 21.6% decrease.

2. EBITDA Compression: EBITDA saw a sharp decline to ₹18.00 crores from ₹50.00 crores, with the EBITDA margin compressing to 15.96% from 38.86% year-over-year.

3. Aging Fleet: Four container vessels in the company's fleet are nearing the end of their 30-year residual life, requiring enhanced maintenance and leading to increased operating expenses.

4. Vessel Downtime: The aging vessels require periodic scheduled lay-ups for technical upkeep and compliance, resulting in a loss of operating days.

5. Market Volatility: The global shipping industry experienced volatility, particularly in the container freight segment, with the Shanghai Containerized Freight Index (SCFI) declining by 8.1% to 1319.34 points in mid-September 2025.

Operational Overview

Transworld Shipping Lines currently operates a fleet of 12 vessels, including 10 container feeder vessels and 2 dry handy size bulk vessels. All container vessels are deployed on charter with Avana Logistek Limited, while the dry bulk vessels operate in global markets.

The company faces challenges in replacing its aging vessels due to high acquisition costs and limited suitable options in the current market. Management is actively exploring opportunities to address this critical aspect and strengthen its position for future growth.

Industry Outlook

Despite the challenges, there are some positive indicators in the shipping industry:

• The Baltic Handysize Index (BHSI) showed a bullish trend, with rates climbing from 690 to 856 points through September, driven by tight vessel supply and increased demand for dry bulk movement along India's coasts.
• Indian coastal container trade remained resilient due to domestic consumption and policy support.

Management Commentary

While specific management quotes were not provided, the company's press release indicates that Transworld Shipping Lines is actively evaluating options to replace its aging vessels and exploring opportunities to meet equity requirements for fleet renewal.

As the shipping industry continues to navigate through global economic uncertainties and market volatility, Transworld Shipping Lines faces the dual challenge of managing its aging fleet while adapting to changing market conditions. Investors and stakeholders will be watching closely to see how the company addresses these challenges in the coming quarters.