Mazagon Dock Shipbuilders Ltd

Dear Members,

It gives your Board of Directors immense pleasure to present the 92^nd Annual Report together with the Audited Standalone and Consolidated Financial Statements of the Company for the FY 2024-25 and Auditors' Report thereon.

Important Events:

(i) Hon'ble Prime Minister S hri. Narendra Modi commissioned three significant Naval assets ? the Destroyer Surat, the Frigate Nilgiri, and the Submarine Vaghsheer ? in a grand ceremony held at Naval Dockyard, Mumbai on 15 January 2025;

(ii) Sixth Scorpene Submarine of Project 75, ‘INS Vaghsheer' was delivered to the Indian Navy on 09 January 2025;

(iii) Fourth Guided Missile Destroyer of Project 15B, INS Surat and First Stealth Frigate of Project 17A, INS Nilgiri were delivered to the Indian Navy on 20 December 2024;

(iv) Commencement of production activity for One Training ship for the Indian Coast Guard on 26 April 2024. The Keel laying ceremony for the project was held on 13 January 2025;

(v) Production activity for Next Generation Offshore Patrol Vessels (NGOPV) commenced in May 2024 and Fast Patrol Vessels (FPV) commenced in December 2024.

1. Financial Overview

1.1 Standalone Financial Results and Performance Highlights:

(Rs in crore)

PARTICULARS	FY 2024-25	FY 2023-24
Revenue from Operations	11,431.88	9,466.58
Profit before Tax (before Exceptional Items)	3,109.20	2,461.38
Profit for the year	2,324.88	1,845.43
Gross Block	2,091.00	1,354.70
Net Block	1,465.72	837.94
Working Capital	4,890.78	3,169.46
Net Worth	7,180.84	5,570.68
Finance Cost	4.40	5.12

• Revenue from Operations increased by 20.76 % from Rs 9,466.58 Crores in the FY 2023-24 to Rs 11,431.88 Crores in the FY 2024-25.

• Profit Before Tax (PBT) increased by 26.32 % from Rs 2,461.38 Crores in the FY 2023-24 to 7 3,109.20 Crores in FY 2024-25.

• Historic milestone with a record Profit After Tax (PAT) of 7 2,324.88 crore for the FY 202425 achieved against the previous FY 2023-24 marking a 26% growth over last year's PAT of Rs 1,845.43 Crores.

Income Distribution for the FY 2024-25 as against the

previous FY 2023-24 is summarised as under: -

(in %)

INCOME DISTRIBUTION	FY 2024-25	FY 2023-24
Cost of Materials consumed	45.10	58.72
Employee benefit Expenses	7.77	8.45
Finance Costs	0.03	0.05
Depreciation and Amortization expenses	0.91	0.78
Sub-Contracting charges	10.48	3.61
Power & Fuel	0.16	0.17
Expenses related to Projects	2.38	1.57
Other Expenses	2.57	1.84
Provisions	5.93	1.59
Exceptional Items	-	-
Tax Expense	6.22	5.81
Other Comprehensive Income	0.02	0.04
Total Comprehensive Income	18.43	17.36
Total	100	100

1.2 Consolidated Financial Statements:

The Consolidated Financial Statements of your Company and its Associate Company Goa Shipyard Limited (GSL) for the year ended 31 March 2025 has been prepared pursuant to provisions of section 129(3) of the Companies Act, 2013 and applicable Accounting Standards and forms part of this Report.

In accordance to Section 129(3)(1) of the Companies Act, 2013 read with Rule 5 of the Companies (Accounts) Rules, 2014, a statement containing salient features of

the financial statement of the Associate Company in Form AOC-1 (Appendix 'H') is appended to this Report, which forms part of the Financial Statements.

1.3 Capital Structure:

The authorised Equity Share Capital of the Company as on 31 March 2025 stood at Rs 323.72 crore comprising of 64,74,40,000 (Sixty Four Crores Seventy Four Lakh Forty Thousand) equity shares of 7 5 each.

The paid-up Equity Share Capital as on 31 March 2025 stood at Rs 201.69 crore comprising of 40,33,80,000 (Forty Crores Thirty Three Lakh Eighty Thousand) equity shares of Rs 5 each. During the year under review, there was no change in the authorised or paid up share capital of the company. Further, the Company has not issued any equity shares with differential rights as to dividend, voting or otherwise during the year.

During the year, the Company sub divided it's 1 (One) Equity Share of face value of Rs 10 (Rupees Ten Only) each into two Equity Shares of face value of 7 5 (Rupees Five only) each effective 27 December 2024.

1.4 Dividend:

For the FY 2024-25, the Board of Directors approved payment of interim dividend as under:

1^st Interim Dividend of Rs 23.19 per equity share of Rs 10 each (231.90%) amounting to Rs 467.72 Crores approved by the Board on 22 October 2024.

2^nd Interim Dividend of Rs 3 per equity share of Rs 5 each (60%) amounting to Rs 121.01 Crores approved by the Board on 08 April 2025.

The Board of Directors has recommended a Final Dividend of Rs 2.71 per equity share of Rs5 each (54.2%). The Final Dividend if approved by the shareholders, would involve cash outflow of Rs 109.32 Crores.

Thus, the total dividend including final dividend for the FY 2024-25 would be Rs 17.305 per equity share of 7 5 each (346.10%), amounting to 7 698.05 Crores.

1.5 Transfer to Reserves:

During the year under review, the Company does not propose to transfer any sum to reserves.

1.6 Contribution to the Exchequer:

For the FY 2024-25 your Company's contribution to the exchequer by way of Income Tax, GST, IGST on imports and Custom Duty was Rs 2,312.15 Crores.

1.7 Public Deposits:

The Company has not accepted any deposits from the public and no amount on account of principal or

interest on deposits from public was outstanding either at the beginning or at the end of the FY 2024-25 or as on the date of this report.

1.8 Loans, Guarantees or Investments:

Your Company has not given any loans, guarantees or made any Investments under Section 186 of the Companies Act, 2013.

1.9 Material Changes subsequent to the date of Financial Statements:

No material changes / commitment of the Company have occurred after the end of the FY 2024-25 and till the date of this report, which affect the financial position of the Company.

2. Review of Operations

Your Company recorded a revenue of Rs 11,431.88 crore for the FY 2024-25 as against Rs 9,466.58 crore in the previous FY 2023-24.

There is no material change in the nature of business of the Company during the year.

2.1 Update on Ongoing Projects: At present your Company is handling the following important Projects -

a) Destroyer Project:

Destroyer Ships are potent combatants which are Contemporary and State-of-the-Art platforms. First Destroyer of Project P15B was delivered on 28 October 2021 and has been commissioned into the Indian Navy on 21 November 2021. Second Destroyer of the project was delivered on 24 November 2022 and has been commissioned on 18 December 2022. Third Destroyer of the project was delivered on 20 October 2023 and has been commissioned on 26 December 2023. The Fourth Destroyer of the project was delivered on 20 December 2024 and commissioned on 15 January 2025.

All the four ships have been delivered before Contractual timelines and Guarantee related activities are being executed now.

b) Frigate Project:

MDL was awarded contract to build four (4) ships under P17A Project in the year 2015. The First of Class of 17A Project was delivered in December 2024 and has been commissioned on 15 January 2025. The second ship of the series is undergoing trials and is getting ready for delivery. The remaining two ships shall be delivered as per contractual timelines.

c) Repair & Refit Projects:

Your company has successfully completed Repair & Refit projects of one Coast Guard Vessel and five commercial vessels during FY 2024-25. At present your Company has participated in tender for four repair & refit projects (comprising of two Offshore Patrol Vessels & two Fast Patrol Vessels) for the Indian Coast Guard.

d) Coast Guard (CG) Project:

Under CG Projects MDL is making 1 training ship, 6 NGOPVs and 14 FPVs. The contracts for these projects were signed in October 2023, December 2023 and January 2024 with total contract value of 7 2,991 crores. Production of all the three Projects has already started. These ships will be built at MDL and at newly developed facility of Nhava Yard. These ships will perform as training platform for Coast guard recruits, coastal patrolling, Ocean surveillance, anti-smuggling and anti-piracy operations, logistic supports, rescue operations and to supplement Naval resources.

e) Project Multi Purpose Vessels (MPV) - Commercial Vessels:

Multi-purpose vessels, or MPVs, are known for their versatility, flexibility, and capability to perform across various functions.

MDL has signed an order with M/s Navi Merchants, Denmark for the construction of six 7500 DWT Multi-Purpose Hybrid Powered Vessel at a value of USD 85 million (7 715 Crores) with an optional clause for four more vessels.

The production of the first three vessels is already commenced on 24 September 2024, 16 October 2024 & 03 January 2025 respectively.

f) Submarine Project:

The Scorpene Submarines are State-of-the Art Conventional Diesel Electric Submarines built by MDL in collaboration with M/s Naval Group (NG), France. MDL is the only Shipyard in India which has constructed Conventional Submarines with two different technologies viz., German SSK Class Submarines and French Scorpene Class Submarines. Sixth Scorpene Submarine of Project 75, ‘INS Vaghsheer' was delivered to the Indian Navy on 09 January 2025.

g) Offshore Projects:

MDL is also diversifying its business into following offshore projects. Currently, 03 Nos. Offshore projects for M/s ONGC are in progress:

1. Part Replacement of Pipeline Project (PRPP) - MDL has received a NOA (Notification of Award) for PRPP from M/s ONGC on 07 December 2023 for part replacement of Subsea pipelines (approx. 44 kms).

2. Discover Small Field-II Project - MDL has received a NOA (Notification of Award) for the project DSF-II from M/s ONGC on 08 August 2024 for building new Six (06) Nos. well Head platforms and modification of three (03) Nos. of platforms along with Subsea pipe laying of approx. 200 kms.

3. PRP 8(a) Project- MDL has received a NOA (Notification of Award) for PRPP 8(a) on 05 September 2024 for Subsea pipe laying of approx. 59.8 kms. & 17.9 kms. of Piggy back along with modification to the existing platforms.

2.2 Capital Projects and their progress

a) Your Company is committed towards up gradation/modernization of existing facilities from time to time. The company has taken up replacement of existing 08 nos. vintage Level Luffing cranes with new modernized cranes in a phased manner which is expected to be completed in August 2027.

b) Your Company has undertaken the work of manufacture of new Caisson Gate for the East Yard Dry dock for replacement of existing old Caisson gate. The replacement of gate is completed in June 2025.

c) Your Company has taken up setting up a green field shipyard at its Nhava Yard in phased manner with short term and long term developments plan. Short term development shall enable MDL to facilitate the immediate use of the existing infrastructure for shipbuilding and ship repair business whereas long term development is to facilitate construction of large size vessels and submarines including major refit and repairs. The facilities include construction of Dry Dock cum Wet Basin, Grand Assembly Area, Hard Stands, provision of Goliath Cranes of 400T, LL Cranes 50T to 120T, Workshops, Stores, offices and Allied Services.

d) Your Company has taken up development of newly acquired land parcel of approx. 15 acres at adjacent MPA land to facilitate construction of large size vessels and submarines including major refit and repairs.

e) Your Company is setting up a New Fabrication Workshop including stores at Alcock Yard in MDL Premises.

2.3 Other Infrastructure Projects:

For undertaking the construction of advanced and next generation vessels, MDL has undertaken construction of a New Floating Dry Dock of 12000T capacity.

Your Company is committed towards up-liftment of under privileged sections of society and towards this a skill development hub is being created with an Apprentice Training School (ATS) and associated development work at Gavhan village, Navi Mumbai.

2.4 Performance against MoUs:

During the year, MDL had signed Memorandum of Understanding (MoU) with Ministry of Defence, Government of India for the FY 2024-25. The MoU outlines targets and various performance parameters for the Company. The value of production for FY 202425 was targeted at k 11,250 Crores against which achievement of value of production is k 11,196.04 Crores.

During the year FY 2024-25, your Company achieved a Profit before Tax (PBT) before exceptional items of k 3,109.20 crore. The import content in Value of Production for FY 2024-25 is k 1885.61 Crore and for FY 2023-24 was k 2,414.71 Crores.

2.5 Research & Development (R&D):

The Company's R&D policy was approved by the Board in June 2013, following the guidelines issued by the Department of Public Enterprises in September 2011. A dedicated committee was established to oversee its implementation.

MDL for the period under review, pursued targeted R&D initiatives in collaboration with academic institutions, start-ups, and MSMEs?not only within the core defence sector but also in critical areas such as autonomous underwater technology and sustainable, eco-friendly transportation solutions.

Further, MDL actively participated in the Government of India's iDEX initiative and, in partnership with startups, MSMEs, and innovators, has taken on several challenges.

Three major R&D projects were successfully completed through collaboration with IIT Chennai, and start-ups within the Tamil Nadu Defence Corridor. These projects involved the development of Al-powered technologies, including:

• Al-enabled Computerized Radiography (RT)

• Al-based Robotic Weld Inspection using Phased Array Ultrasonic Testing (UT)

• Al-enabled Remotely Operated Vehicles (ROVs)

These solutions have been effectively deployed in their respective domains, with full-scale Al optimization anticipated as more operational data becomes available.

MDL continues to explore innovative Al initiatives in partnership with domestic industry, academia, and start-ups.

ln addition, MDL has developed a state-of-the-art basic design framework for naval vessels, featuring advanced and optimized systems for equipment, machinery, weaponry, and overall arrangement.

MDL has also implemented Product Data Management (PDM) and Product Lifecycle Management (PLM) systems for the frigates currently under construction.

The Submarine Division has undertaken focused R&D initiatives through collaboration with Academic lnstitutions, Start Ups & MSMEs not only in the core Defence sector but also other critical areas like underwater autonomous technology, sustainable & environment friendly transport solutions etc.

lnnovative R&D projects are currently in progress at Submarine division not only in the defence sector but also in the field of energy and other civil applications. Military products like Expendable Underwater Target (EUT) and Mobile Target Emulator (MTE) which are being developed in partnership with the Industry and are designed to simulate the situation of actual moving submarine for training purpose and for decoy measures.

MDL has developed lndia's first Fuel Cell powered Electric Vessel (FCEV) as a ‘Proof of Concept'. MDL is also undertaking a few Artificial intelligence (Al) Projects under R & D viz; Autonomous/ unmanning of Surface vessels and Optimum utilization of Fuel cell under Hybrid power management.

Modern marine transport solutions like Hybrid Electric & Solar boats which can provide sustainable and environment friendly options have been developed. Solar Boat has been launched in December 2023. This Boat can offer a better alternative to conventional diesel boats. The R&D team has also developed prototype of

Lithium Ion Battery system for Submarine in collaboration with M/s QMAX as technology partner.

In addition to the above, MDL is actively participating in iDEX initiative of Govt of India and in collaboration with Start-ups/ MSMEs/ Innovators has already accepted various challenges like Autonomous Underwater Swarm Drone, Development of Steering console for maneuvering of Underwater platform, Design & Development of Submersible Boat etc.

Your Company has spent approximately 5.06% of the PAT towards R&D expenditure during the FY 2024-25. The various projects undertaken under R&D are elaborated in Appendix 'F'.

In order to promote R&D, your Company has joined hands under CSR with IIT Bombay, IIT Madras, IIT Hyderabad and IIT Indore. MDL has supported following five research projects with IITs under CSR.

Sr. No. IIT	Name of Project	Project Objectives
a IIT Bombay	Robotic welding for Shipbuilding: Sensors based automatic programming with collision detection for rapid deployment.	Development of an automatic programming approach for robotic welding, which would enable the rapid deployment of robotic welding for Shipbuilding resulting in increased productivity
b IIT Bombay	Improved Adhesion & Corrosion Resistance for Marine Applications via Robotic Plasma Surface Treatment Technology.	To explore the potential of dielectric barrier discharge (DBS) plasma surface treatment as a promising approach to enhance the performance of protective coatings in marine engineering applications
c IIT Indore	Investigations on Prototype Development for on Laser based Large Area Cleaning of Biofouling from Ship Hulls.	• To Investigate the influence of laser parameters towards Laser Cleaning of Biofouling from Ship Hull.
		• To optimise the laser parameters for efficient clearing without any impact on the Ship Hull.
		• To design and optimise the Laser system for large area Cleaning.
		• To investigate the growth/complete removal of micro organism after the treatment of Laser.
d IIT Indore	Impact Induced Failure of Stiffened Curved FRP Ship Panels under Hygro - thermal Environment.	To develop a computer code for contact forces (loading, unloading and reloading) due to impact on curved FRP Ship panels for varying shape, size and speed of Impactor.
e IIT Hyderabad	Time-dependent reliability analysis and structural health monitoring of Ship structure considering uncertainty.	To perform a time dependent reliability analysis and Structural Health Monitoring (SHM) of Ship structures considering uncertainties.
f IIT Madras	Construction of Circulating Water Tank at Dept. of Ocean Engineering, IIT Madras	The primary focus is on the design, analysis, and construction of the Circulating Water Channel (CWC), including the procurement of advanced instruments. This robust setup will facilitate precise experimental studies, enabling the CWC to become a foundational resource for fluid dynamics research.
		The CWC's testing capabilities allow for scaled model studies of complex phenomena such as turbulence and cavitation.

The above mentioned research based projects will help in developing technologies in marine/ocean/naval technologies.

2.6. Indigenization & Make in India:

a) Strong Commitment to Indigenisation: MDL has

consistently demonstrated a firm commitment to advancing indigenisation, in line with the vision of the Hon'ble Prime Minister's Make-in- India and AtmaNirbhar Bharat initiatives. Since the establishment of a dedicated Indigenisation Department in October 2015, MDL has actively collaborated with Indian industries to develop indigenous alternatives to imported components. To-date, a total of 74 major systems and components for ships and submarines have been successfully indigenised, a majority of which were developed in partnership with MSMEs.

b) Key Indigenous Development Initiatives of MDL includes:

• Electric Propulsion Motor (EPM) critical for submarine propulsion - Concept finalized; Design and Development is in progress;

• Controllable Pitch Propeller (CPP) & Shaft System, converts engine power into propulsion - Development of the system is in progress; and

• Helicopter Fire Fighting System (HFFS) ensures on-board Helo-deck safety -

Development of the system is in progress

c) MDL Innovation Program (MIP): MDL has

introduced its own in-house innovation scheme, the MDL Innovation Program (MIP), mirroring the Ministry of Defence's iDEX initiative. The program is administered by the Indigenisation Department and has a dedicated funding allocation of 7 10 Crores for the period 2024-2027. It is aimed at providing financial assistance?up to Rs One Crore per project?to start-ups, MSMEs, academic institutions, industry professionals, and partner incubators to foster indigenous development.

d) Success Stories under Innovation in Defence Excellence (iDEX) DISC-6 : As a proof of concept under the iDEX DISC-6 Challenge, MDL has indigenously developed the Steering Console for Midget Submarines. This critical system is responsible for controlling the submarine's movement in all three dimensions by managing the Rudder and Diving planes.

e) Ongoing Projects under Innovation in Defence Excellence (iDEX) DISC-10: MDL is actively contributing to the iDEX DISC-10 initiative with projects aimed at indigenising key submarine

technologies such as the Sonar Beacon, Windlass & Capstan, and Digital Bearing Time Device. These items are currently under development.

f) Contribution to the Positive Indigenisation List (PIL): MDL has made a substantial contribution to the Ministry of Defence's Positive Indigenisation List (PIL) by submitting 1,024 items. Out of these, 24 items have already been indigenised, while the rest are in various stages of Research, Design, and development.

g) Outreach and Industry Engagement: In its efforts to promote indigenisation and enhance industry participation, MDL also conducted a seminar through the SRIJAN Portal on 26 November 2024. The event served as a platform to share information, invite industry collaboration, and discuss future opportunities in indigenous development of Naval equipment and system components.

h) MDL remains committed to strengthening India's Defence manufacturing ecosystem by fostering innovation, supporting MSMEs, and reducing dependency on imports through focused indigenisation initiatives.

i) Indigenization of Submarine Equipment: MDL has proactively pursued indigenous development for items/ equipment of foreign OEMs for conventional Submarine. 51 out of total 174 Submarine equipment have been indigenized. 35 items are being developed by Indian Navy, balance 88 are under various stages of tendering/ scrutiny, out of which Project Sanction Order (PSO) for 42 items have been issued including Main Electric Propulsion Motor.

2.7 Quality Assurance

a) Quality Management System (QMS)

MDL has obtained & maintained QMS as per ISO 9001 Standards since 1998 onwards. Your Company is committed to implement Quality Management Systems (QMS) as per ISO 9001:2015 standard. A total of 55 Lead Auditors and 65 Internal Auditors were trained for carrying out the Internal Audits for sustenance of QMS in Shipbuilding Division.

As a part of sustaining QMS as per ISO 9001:2015 Standard, 1st Surveillance Audit of Shipbuilding Division including Nhava and Ship Repair & Refit was carried out successfully from 10 to 14 February 2025 by M/s International Certification Services Pvt Ltd (ICS).

Renewal Audit for Submarine Division as per QMS ISO 9001:2015 was conducted from 24 to 26 April 2024 and successfully completed with ‘NIL' Non-conformity reports by M/s ICS (International Certification Services Pvt Ltd) with the scope of “Design, Development, Construction, Refit, Test & Trials of Submarines”. Based on audit results, M/s ICS has certified that Quality Management System of Submarine Division has been assessed and registered as complying with the requirements of International Standard ISO 9001:2015.

b) Quality Concepts

5S (Work Place Management System)

MDL has implemented 5S (Workplace Management System) in the 21 Workshops/ Stores/Offices and carried out internal audits regularly. As a part of sustaining 5S certification, all 21 workshops/offices/stores were re-certified through external agency.

c) Quality Circles (QC)

Quality Circle movement was started in October 2004. In a span of 20 years, MDL has developed QC in various Shops/Sections/Projects. They are actively working in their respective areas & solving their respective work related problems proactively. QC teams from MDL presented their case studies in Chapter Convention on Quality Concepts (CCQC-2024) and 38th National Convention on Quality Concepts (NCQC-2024) and have won various awards in the FY 2024-25 as mentioned under Awards and Recognition.

d) Technology Advancement in Quality control & Assurance

India has caught up with the Industry 4.0 trends and MDL is not far behind in incorporating the best practices. Design and development in

the field of Robotics, Machine Learning, Data Analytics, Big Data has started and is in different stages of maturity. MDL has implemented the following new initiatives in the field of Quality:

1. With the implementation of AI-

Enabled Weld Inspection Machine with Computerized Radiography-(AI- RT) & Advanced TFM/FMC Ultrasound Technique-(AI-UT) MDL has increased the use of more environment friendly imaging plate film reducing the conventional process of film processing with chemical. Along with these system various other QA

4.0 advancement are either implemented like Parikshan Portal for online Inspection, QR code compartment inspection or in process of implementation i.e. PAUT for UT & other methods.

2. To enhance skill and expertise within the QC team, targeted training programs were organized. As a result of these initiatives, three personnel successfully cleared the level III certification in different methods, one achieved NACE level I certification. On similar line various certification course as per ISO 9712, ISO 13805, Coating Inspector as per NACE, Certified welding Inspector as per TWI etc. are already scheduled as a reflection of the organizations commitment to continuous learning and professional growth.

3. Vacuum test was implemented at the shop level as a quality control measure to ensure the integrity of tanks and to enable detect any potential leaks. This testing method involves creating a vacuum inside the tank and monitoring pressure levels to identify any loss that would indicate a leak. By incorporating an additional activity of this new test into the production process, early detection of defects is now possible prior to erection stage of units under construction.

4. MDL QC teams also actively participated in National and International level conferences.

2.8 Information Technology

Your Company has completed the following activities during the year:

a) Cyber Security of Internet PCs as per CIRA guidelines

The guidelines have been received from MoD- Cyber Security Operation Centre (CSOC) for implementation of CHAKRAVYUH solution to ensure the automated audit response of Defence Industries Network Endpoints of internet enabled PCs/ laptops of DPSUs at CSOC.

Accordingly, the following actions were completed in time bound manner:

1. Procurement of Chakravyuh Servers along with its installation was completed in November 2024.

2. The Cyber security posture ensured by migrating of all internet facing machines (241 No.) to MAYA OS in February 2025.

b) MoD guidelines related to Information Security are complied as and when received from the authority.

c) MDL has successfully completed 2nd Surveillance Audit ISO/IEC 27001:2013 in October 2024.

d) Targets set and achieved for 2024-25

• Cyber Security Audit for VAPT of Business Application Servers & Physical Audit of the Computers: - Completed from September 2024 to December 2024.

• Implementation of Vigilance Management System (e-Vidhan): -

The existing manual vigilance system has been migrated to IT driven system with the theme ‘Increasing Transparency through use of Technology' of Central Vigilance Commission.

The various procedures of Vigilance Dept. such as Action on Investigation Report, Annual Property Returns, Complaint Register along with the required reports have been implemented in e-Vidhan Module which is integral part of in SAP ERP

6.0 (ECC system).

• The existing IT infrastructure of Servers/ Storage/ Backup/ VM (Make-Fujitsu) at CIT domain was procured in Year 2016 under CAPEX which hosts critical MDL business applications like SAP, Emailing, AD, file server, etc.

• In order to overcome the challenges of oversized/ under sized data storage followed by the scale up requirement and technological obsolescence, the procurement of this critical requirement with OPEX model has been initiated wherein the IT infrastructure is procured as a service.

• SAP QM Inspection Module enhancement

for SB Division: This development

successfully completed in January 2025 which ensured for availability of inspection status on real time basis across the ongoing projects.

• SAP configuration for auto deletion of PR's which are not processed for RFQ/ tendering within 6 months from PR creation date:- Activity completed in February 2025. This ensured for data quality and consistency by data cleansing activity.

2.9 Procurement from MSMEs

Your Company is complying with the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012. According to which, minimum 25% of the total annual procurement is to be made from MSEs. During the FY 2024-25, your Company has achieved 34.32% procurement from MSEs.

During the FY 2024-25 your Company had conducted 2 and participated in 2 Vendor Development Programs exclusively for MSEs owned by SC/ ST and Women Entrepreneurs. To further enhance the vendor base, your Company had participated in 8 online/ offline National level programs conducted by MSME Development Institute (DI), State Directorates, NSSH and industry associations such as DICCI, FICCI, CII, etc.

2.10 Marketing Initiatives and Exports:

During the FY 2024-25, MDL participated in Africa Aerospace and Defence (AAD)-South Africa, Asian Defence & Security Exhibition(ADAS)-Philippines, EXPO Naval-Chile, Vietnam International Defence Expo(VIDEX)-Vietnam and Naval Defence & Maritime Security Exhibition (NAVDEX)-UAE as an exhibitor for marketing and business promotions.

Further, MDL was also part of Ministry of Defence, Government of India/FICCI/SIDM led delegation and participated in the seminars organized by High Commission/Embassy of India in Australia, Romania, Indonesia, Mozambique, UAE, Vietnam, Kazakhstan, Saudi Arabia, Malaysia, DR Congo and Oman.

The above exhibitions/seminars have immensely helped in showcasing MDL's capabilities and technical strength in Warship Building and Submarine construction. The exhibitions were successful in projecting the image and capabilities of India in the Defence production sector in general and Warship/Submarine building capabilities in particular. MDL had obtained various leads for potential future projects.

During the exhibitions/seminars, MDL also interacted with the Armed forces/ Navy representatives of various countries and showcased Indian shipbuilding capacities and capabilities.

Your company has been awarded an order for Construction of additional 03 Nos. Dry Cargo Ship (7500 Tons) by M/s Navi Merchants, Denmark in addition to existing order for similar 03 Ships.

Your company has the capability for Refit, Overhaul and Life Extension of Ships & Submarines. MDL intends to tap the global ship repair market for both Naval and Commercial Ships and Submarines in future. Your company has also bagged an order for Inspection of Pipes & Valves from M/s BHIC Submarine Engineering Services Sdn. Bhd. Malaysia.

In addition to above your company has also been awarded contract for Maintenance Repair & Overhaul (MRO) 01 No. MI 17 Helicopters of Nepali Army in addition to earlier similar order.

Further, your company has also signed Memorandum of Understanding (MoU) with Asyad Drydock Company (ADC), Oman for collaboration on new build / repair of Commercial and Defence platforms.

2.11 Health Safety & Environment Management System:

Your company has been conferred with “Certificate of Registration” for its integrated Health, Safety & Environment Management System (HSEMS) in compliance with ISO 14001:2015 and OHS AS 18001:2007 w.e.f. April 2019. The Certificate is issued by M/s KBS Certification, a firm accredited by Joint Accreditation System of Australia and New Zealand (JAS-ANZ), a member of the International Accreditation Forum (IAF).

MDL having qualified the above standards has joined the exclusive club of companies, committed to sustainable development by continual improvement in performance towards Health, Safety & Environment in their operations/ processes. This qualification fortifies MDL's credibility in all its functioning and future business prospects.

The standard OHSAS 18001:2007 was upgraded to ISO 45001:2018 w.e.f. September 2021. Accordingly, MDL has successfully completed the transition of its HSEMS system from OHSAS 18001:2007 to ISO 45001:2018 in September 2021. The Current HSEMS Certification is valid till July 2025. Revalidation of the HSEMS Certification is under process.

3. Human Resource Development:

Your Company has been putting emphasis on the overall growth & development of Human Resources and is committed to continue its relentless efforts in updating the competencies of its employees through exposure to various Learning & Development programs organized

by Institutes of National Importance and through sponsoring function based Seminar/Conferences/ workshops. Besides, in order to ensure smooth supply of skillsets for Company's requirement and shipbuilding industry, various Training Programs Viz. Trainings of Trade Apprentices under the Apprentices Act, 1961, BOAT Apprentices and Marine Engineering students under the aegis of DG, Shipping at the Company's run Apprentice Training School have regularly been organized.

a) In house Training session of 03 batches on ‘5S & 6 SIGMA and Kaizen' Organised for employees wherein around 108 Non-Executives actively participated.

b) In today's digital world, Cyber Security plays a pivotal role in terms of sensitivity and security of information. In order to address the above, Training sessions on Cyber Security Awareness organised through external faculty and internal faculty. 07 sessions were organised for employees wherein 340 executives, 77 Non-Executives and 135 contract employees actively participated. Further, 03 online sessions were conducted wherein 296 executives actively participated.

c) An in-house capsule program comprising ‘Health', First Aid, ‘Safety' & ‘Fire Fighting' was developed and conducted. Around 48 programs were conducted on the said topics and around 722 Executives and 2012 Non-executives employees were trained. Also, 735 contract employees, outsourced employees and apprentice trainees were provided training.

d) Induction Training programme of 04 weeks were conducted for 51 newly recruited Executives.

e) Various in house Training programmes were organised on wealth management, Direct and indirect taxation and financial investment wherein 14 Training Sessions were organised and total 273 Executives and 186 Non Executives and 185 contract employees participated.

f) A capsule programmes on “Retirement Planning” for the retiring employees and their spouse were conducted. 191 employees along with their spouses participated. The said program encompasses 04 aspects of ‘Diet Management', ‘Wealth Management', ‘Stress Management' and ‘superannuation benefits'.

g) MDL being a DPSU, Information Security is a highly sensitive issue in the current times. In order to restrict vulnerability of the information and to sensitise the employees 09 sessions on “Security Sensitization” were conducted inhouse, benefiting around 571 employees.

h) A customised programs consisting of 13 sessions on ‘Design Thinking, Strategic Thinking, Leadership presence, Leadership skills, Stress management, Work life balance, Business Communication Skills & Presentation Skill' were conducted for 345 Executives.

i) In order to ensure safety and dignity of women employees, MDL had conducted two sensitization programs on ‘Prevention of Sexual Harassment of Women at Workplace' (POSH). Wherein 122 Executives and 254 Non-Executives had participated in the said program.

j) Various training programs for Women employees Training on ‘Women Empowerment', ‘Health' and ‘Suraksha Bandhan' was conducted wherein 840 women employees participated. On the occasion of Women's Day, MDL had organized various outreach activities for women Executives including outsourced women employees. These programmes were aiming to empower the women employees in MDL.

k) In order to spread awareness on Procurement, various training programs on Commercial procedures, procurement through GeM portal and Public procurement was organised, wherein 04 sessions were organised and 224 Employees have undergone the Training.

l) A customized training program on “Preventive Vigilance” were conducted wherein 225 employees actively participated through 05 sessions.

m) 01 program on Intellectual Property Rights (IPR), through External faculty to create an IPR driven Innovation Culture wherein 119 employees were trained.

n) With view to develop standardisation in production, ISO Awareness and HSE Awareness (under Soch Badlo Initiative) Programmes were conducted wherein 82 Executives and 542 NonExecutives participated in 14 sessions.

o) As per CVC directives, 05 core subjects were identified such as Cyber Hygiene & security, System & procedure organization, Ethics & Governance, Public procurement and Role of IO & PO to train the trainers under Capacity

Building programme. Five in house programmes were conducted wherein around 204 Executives participated and potential trainers were identified for carrying out training outside MDL.

p) Training Sessions on ‘Enterprise Risk Management' exclusively for Executives were organised wherein 88 Executives attended through 04 Sessions.

q) 07 sessions on YOGA were carried out for employees for understanding the importance of Physical and Mental health. Total 180 employees were trained under this initiative.

r) 09 sessions on Hindi Karyashala were conducted for employees, wherein 124 participants were trained.

s) 03 sessions on Microsoft Excel, PPT and Word were conducted wherein 36 employees were trained.

t) An application ‘e-library' was developed on MDL Intranet Portal for knowledge sharing, wherein all employees can contribute with e-books/ Journals/Magazines/Articles to be read by all other employees.

3.1 National Integration:

Your Company has undertaken a number of measures, which have immensely facilitated towards National Integration. Some of these activities are enumerated below:

a) MDL follows necessary directives of the Government in so far as recruitment of SCs/STs/ OBCs/PWDs and Minorities.

b) Observes 'Quami Ekta Diwas' every year and extends financial assistance. This amount is primarily spent towards those children, who become destitute and orphan in communal, caste, ethnic or terrorist violence for care education and training for effective rehabilitation.

c) Taken sincere efforts in bringing the backward and downtrodden of the society in the mainstream through various CSR initiatives in the field of Health, Sanitation, Skill Development, Rural Development, Education and Rehabilitation etc.

d) Empowered women through various measures such as Learning and Development initiatives, Committee on WIPS and through Internal Complaint Committee (ICC) for redress of complaints of Sexual Harassment.

3.2 Welfare Activities

Your Company values its Human Resources the most.

In order to keep their moral high, apart from statutory

Welfare measures. MDL also extends several other

voluntary Welfare Activities these are as under:

a) Life Insurance Coverage:

Company has made a customised scheme i.e. Group Savings Linked Insurance Schemes (GSLIS), which provides financial assistance in case of untimely death (accidental/illness) of an employee while on duty. Besides this, Group Personal Accident Insurance Scheme (GPAIS) has also been in place, which provides 24 hours' coverage for compensation in the event of an accident of an employee resulting in death or permanent/partial disability.

b) Medical Scheme:

All the serving employees, including their dependent family members, are covered under the Medical scheme. Hospitalization claims of around Rs 55.23 Crore were disbursed towards treatment to the employees and their dependent family members during the FY 2024-25.

c) Funeral Expenses:

If any permanent employee of MDL expires for any reason whatsoever, while in employment; a non- refundable financial assistance of

7 20,000/- (Rupees Twenty thousand only) is given to the next of kin of the deceased employee towards funeral expenses.

d) Death Benefit Scheme:

a) The contribution of employees, in case of death of a fellow employee due to accident in the premises of the Company will continue to be 7 50/-per head and the company grants a matching contribution and the total amount so collected is handed over to the next of kin of the deceased employee.

b) The contribution of employees in case of death of a fellow employee due to natural causes and other than as mentioned above is 7 25/- per employee and your Company grants a matching contribution and the total amount so collected is handed over to the next of kin of the deceased employee.

e) Other Welfare Activities:

Your Company also provides number of welfare measures viz., Onsite Dispensary and Occupational Health Centre, Hospitalization, Wellness Centre, Onsite Gym & Club, Uniform, Monsoon Gears, Canteen Facility, Incentive for acquiring higher qualification, Scholarship to Unemployed Wards of Employees etc.

f) Financial assistance to legal heir in the event of death in harness:

Financial assistance of total Rs 10,50,000/- was given to the beneficiary of 02 deceased nonexecutives in death in harness during the FY 2024-25.

Superannuation Benefits to Ex-employees

1. Post-Retirement Medical Scheme (PRMS):

Your Company has Post-Retirement Medical Scheme to provide medical facilities to the retired employees and their spouse. The Scheme is administered through a Health Service Benefit Provider and is funded directly by MDL. In terms of the Scheme, expenses incurred beyond the stipulated ceiling is also provided in case of critical diseases. MDL also provides medical expenses to Executives retired before 2007 and Non-Executives retired before 2006 as per extant Scheme.

Your Company has facilitated Group Personal Accident Policy covering all active employees (Executives and NonExecutives).

2. Executive's Superannuation (Pension) Scheme

Defined Contributory Superannuation (Pension) Scheme is in operation for Executives which is in line with the Department of Public Enterprise's Pay Revision Guidelines, operated through NPS. MDL contributes 10% of Basic pay and DA to the Superannuation Pension Fund whereas minimum 3% contribution is made by the employees which is credited to National Pension Scheme.

3. Non-Executive's Superannuation

(Pension) Scheme

Defined Contributory Superannuation (Pension) Scheme for Non-Executives is also operational in MDL similar to Pension Scheme for executives. The pension scheme is operated through NPS. MDL

contributes 5% of Basic pay and DA to the Superannuation Pension Fund whereas similar contribution is made by the employees which is credited to National Pension Scheme.

4. Group Personal Accident Scheme (GPA)

Company funded Group Personal Accident Scheme (GPA) is operational in order to provide compensation towards accident/ injury of any Permanent/ Fixed Term/ Apprentice/ Outsourced employee as well as visitors in MDL.

5. Significant step is taken in providing PPOs to retiring employees on the day of their retirement under the scheme PRAYAAS implemented by EPFO. Help desk has been set up under the concept of “Pension Mitra” to assist employees for getting pension.

3.3 Manpower and Reservation of Posts for SCs/STs:

a) The Company has been following Presidential Directives of the Government with regard to reservation of posts for SCs/STs in recruitments.

b) Total Manpower strength as on 31 March 2025 is at 6039 (including functional directors) out

of which the number of persons on Fixed Term basis was 3385 of the total strength, 87 are Ex-servicemen, 886 are of Schedule Caste and 531 are of Scheduled Tribes. The percentage of Scheduled Caste and Scheduled Tribes in respect of Employees was at 14.68% and 8.79% respectively.

c) Number of persons on Fixed Term basis as on 31 March 2025 is 3385 out of which 465 belong to Scheduled Caste and 300 belong to the Scheduled Tribes category.

Details of the statement showing position regarding representation of Schedule Castes and Schedule Tribes in various categories of post on 01 January 2024 and 01 January 2025 is annexed at Appendix 'A'.

3.4 Employment of Women:

As per the recommendation No.51, Para (ii)(a) of the National Commission for Women (NCW) in its Annual Report for the year 1995-96, the employment position of Women as on 31 March 2025 is given below as directed by the Ministry of Defence, vide their letter Nos. 39(6)/99/D(B&C), dated 27 August 1999.

Note: MDL being a heavy engineering industry, the number of women applying in various trades and disciplines against vacancies notified is low.

i) Executives

Sr. No.	Grade	No. of Employees	Women	Percentage
1	E0	34	3	8.82
2	E1	43	9	20.93
3	E2	15	3	20.00
4	E3	168	14	8.33
5	E4	270	22	8.15
6	E5	251	8	3.19
7	E6	123	8	6.50
8	E7	45	7	15.56
9	E8	18	0	0
10	E9	3	0	0
11	CVO	1	0	0
12	Functional Directors	4	0	0
	Total	975	74	7.59

ii) Non-Executives (Operatives)

Sr. No	Grade	No. of Employees	Women	Percentage
1	WG-01	11	0	0
2	WG-02	371	0	0
3	WG-03	6	0	0
4	WG-04	27	0	0
5	WG-05	2785	70	2.51
6	WG-06	341	7	2.05
7	WG-07	935	25	2.67
8	WG-08	127	0	0
9	WG-09	18	0	0
10	WG-10	17	0	0
11	WG-3A	1	0	0
12	WG-4A	60	0	0
	Total	4699	102	2.17
iii) Non-Executives (Staff)
Sr No.	Grade	No. of Employees	Women	Percentage
1	SI-03	1	0	0
2	SI-04	1	0	0
3	SI-05	290	52	17.93
4	SI-06	20	4	20.00
5	SI-07	36	8	22.22
6	SI-08	6	2	33.33
7	SI-09	8	1	12.50
8	SI-10	3	1	33.33
	Total	365	68	18.63

*As on 31 March 2025, out of 6040 employees, 5796 constitutes male and 244 constitutes females. There are no transgender employees.

3.5 Persons with Disabilities (PWD) as on 31 March 2025:

The total number of physically challenged employees as on 31 March 2025 was 126 and its percentage to total employees works out to 2.09%.

Sr No.	Group	HI	LD	VI	TOTAL
1	Group-A	7	15	10	32
2	Group-B	0	0	0	0
3	Group-C	17	71	6	94
	Total	24	86	16	126

HI- Hearing Impaired, LD-Locomotive Disability, VI-Visually Impaired.

3.6 Industrial Relations:

a) Industrial relation scenario during this period was cordial and harmonious. There were no man-hours loss on account of Industrial conflict. In the absence of a recognized Union, efforts were made to resolve issues of mutual concern through deliberations with the Unions on the Bargaining Council and other Unions.

b) The Meetings with the Unions on Bargaining Council were conducted on regular basis and issues of mutual concerns like Safety Precautions, Recruitment of Fixed Term employees etc. were settled through bilateral negotiation process. Industrial Relations & Labour situation at MDL, Mumbai is normal and peaceful.

3.7 Reservation for SCs/STs/OBCs:

Your company has been observing all the Government directives and instructions issued from time to time on reservation of posts for SCs/STs/OBCs. All the rosters of SC/ST/OBC/PWD are maintained, which is inspected by the respective Liaison Officer from time to time and perused by the SC/ST Unions also. Detailed statistics regarding the total number of employees, number of women employees, recruitment made during the calendar year 2024 and the representation of SCs/STs/Ex-servicemen as on 01 January 2025 are given at Appendices A, B & C to this Report.

3.8 Grievance Redressal Committees for SCs/STs:

Weaker sections of the society are given adequate protection in the form of just and equitable treatment at the hands of employer. To ensure the same, a separate “Grievance Redressal Cell” has been constituted for SC/ ST employees. A quarterly meeting of representatives of SC/ST is held with Director (CP&P) wherein grievances related to SC/ST are discussed and resolved.

3.9 Report on Sexual Harassment under the Act.:

In compliance with “The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013”, our organisation has established an Internal Complaint Committee (ICC) to address and redress complaints related to sexual harassment. During the period 2024-25 ICC did not receive any complaint related sexual harassment at work place.

Number of complaints received during the financial year- NIL

Number of complaints disposed off - NA

Number of complaints pending for more than 90 days- NA

To promote awareness and prevention, your Company conducts regular Awareness programs, utilize print and digital media and engage external agencies for employee training on appropriate behaviour and prevention of sexual harassment.

3.10 Compliance with the Maternity Benefit Act, 1961:

Company is fully compliant with the Maternity Benefit Act, 1961.

4. Awards and Recognitions:

The awards won in the year 2024-2025 are as under:

a) 23 Quality Circle teams from MDL presented their case studies in Chapter Convention on Quality Concepts (CCQC-2024) hosted by M/s Quality Circle Forum of India, Mumbai Chapter held on 28 & 29 September 2024. Out of 21 QC teams won Gold (highest) Award and 02 QC teams won Silver Award.

Special Awards Won by MDL QC teams at CCQC-24.

• 1st Prize in “Poster” “Poem” and “Essay” Competition

• 3rd Prize in “Slogan” Competition

• “Best of Best QC Team of the day Award”

• “Certificate of Excellence for NAVRATNA Status”

• “Corporate Patronage Excellence Award”

b) 20 QC teams from MDL had participated in 38^th National Convention on Quality Concepts (NCQC - 2024) hosted by M/s Quality Circle Forum of India held at ABV-IIITM, Gwalior from 27 to 30 December 2024. Out of 20, 14 QC teams won “Par Excellence” Award and 06 QC teams won “Excellent” Award.

c) Four Quality Circle teams, Parivartan, Ganaji, Eagle Eye and Anurakshak Participated in ICQCC at Sri Lanka, Colombo from 11 to 14 November 2024. All the QC teams prepared well and shown outstanding performance in the International Convention and all teams won Gold Award.

d) SODET and M/s. BEML Ltd jointly organized National Level Quality Circle Competition (QCC for DPSU) from 21 to 22 November 2024 held at BEML Mysore, Karnataka. 03 QC teams from MDL had participated in SODET QCC and 02 QC team won the gold award and one QC team won Silver award

e) Official language Magazine 'Jaltarang' published by MDL was awarded First prize on 17 July 2024 by Mumbai TOLIC (Town Official Language Implementation Committee).

f) MDL was awarded the Rajbhasha Samman Shield for excellent Hindi work by Rajbhasha Academy Institute on 30 August 2024.

g) MDL's in-house magazine 'Jaltarang' was selected as the best magazine and its Corporate Film was

awarded best CSR Film by Ashirwad Rajbhasha Sansthan and awarded the first prize on 27 September 2024.

h) MDL was awarded the Rajbhasha Samman Shield for excellent Hindi work by Official Language and Management Development Institute on 19 November 2024.

5. Official Language Implementation Activities

a) Hindi Diwas/Week/Pakhwada/Month

Hindi Diwas was celebrated in MDL on 14 September and Hindi Pakhwada was celebrated from 16 September 2024 to 01 October 2024 in which Hindi typing, Quiz, Translation, Hindi essay, Story-telling, Poetry-reading, Crossword, Slogan and Singing competitions were organized. Separate competitions are organized in MDL for Hindi speaking and non-Hindi Speaking Executive and Non-Executives. A program on singing competition was organized which started with the lighting of the lamp by the CMD.

b) Under the Hindi Teaching Scheme, a total Number of 26 Executives and Non-Executives passed the Pravin, Pragya and Parangat examination in November 2024 Session.

c) A grand event on Official Language Seminar was organized in the MDL premises on 29 January 2025, under the aegis of TOLIC during the FY 2024-25.

d) Information related to Hindi implementation was given to the newly selected Executives in MDL through Hindi workshop on 28 March 2025.

e) In order to enhance implementation of Hindi language, MDL management has installed 06 digital boards of “Aaj ka shabd'' and Aaj ka Vichar" at important places of the company and apart from this, Management has also approved to install 05 Hindi digital boards in major departments.

f) An incentive award of 7 5000/- is given to officers and employees who do the maximum typing work in Hindi through Unicode on Computers.

g) An Executive has been nominated as Hindi coordinator in each department of MDL for smooth implementation of Hindi.

h) Hindi Notings have been compiled on the intranet portal of MDL for the promotion of Hindi.

i) Daily “Suvichar” are uploaded on MDL's intranet portal.

6. Vigilance Activities

MDL has a well-established vigilance department which carries out preventive, participative and punitive vigilance, suggests Systemic Improvements based on the investigation of the complaints/ spot checks/ CTE type examination and also ensures that integrity is maintained in all functions of the organization.

Major activities carried out by Vigilance Department are as follows:

a) Preventive Vigilance:

During the period, 11 surprise/ spot checks, 6 CTE type intensive examinations were carried out across the company and thereafter, 6 suggestions/ corrective measures were recommended for Systemic Improvements and the same were promulgated through Circulars by the Directors concerned. Further, 59 complaints were handled during the period 1 CAG Audit and 27 Internal Audit Reports were scrutinized.

b) Vigilance Awareness Week (VAW):

Following programs were conducted during the Vigilance Awareness Week (VAW):

Precursor to VAW 2024 - Capacity building programs on related topics were undertaken during the 3 months' period (16 August 2024 to 15 November 2024).

Vigilance Awareness Week commencing on 28 October 2024 was observed on the theme “Culture of Integrity for Nation's Prosperity”

The digital version of MDL's In-house Vigilance Journal “Sucharita (Vol. XXVII)” was released during the Inaugural function and a skit on the Theme of VAW - 2024 was also performed.

Inhouse activities like Essay, Slogan, Poster, Quiz competitions, Street plays were organized to create awareness about Vigilance.

Outreach activities like Drawing, Essay, Slogan, Poetry writing, running relay and other competitions were also carried out. Gram-sabha was arranged for creating awareness about Corruption citizens at Vani village in Nashik which received a good response. Drawing competition was also conducted at National Skill Training Institute (Women), Mumbai.

Sensitization programs on Vigilance Awareness and Preventive Vigilance were organized for MDL employees so as to create awareness for eradicating corruption.

7. Governance & Sustainability

7.1 Corporate Governance

In terms of Regulation 34 read with Schedule V of SEBI (LODR) Regulations, 2015 and the DPE Guidelines, a report on Corporate Governance for the year ended 31 March 2025 has been prepared and annexed to this Report. The Company's Secretarial Auditor has issued a certificate on Corporate Governance and the same is appended to the Corporate Governance Report at Appendix 'D'.

7.2 Implementation of Right to Information (RTI) Act, 2005

Under the Right to Information (RTI) Act, 2005, to facilitate provision of information to the citizens requesting for the same, your Company has evolved necessary structure by designating officers as Assistant Public Information Officer, Public Information Officer and Appellate Authority for the purpose of implementation of the Act in the Company. During the FY 2024- 25, the Company received 130 applications and 24 first appeals though online/offline mode. The information/ replies sought for were duly furnished. The Quarterly Returns are being uploaded on the Central Information Commission's (CIC) website. Proactive disclosures of information were updated on the website of MDL under RTI Link as directed by CIC

7.3 Meetings of the Board

During the FY 2024-25, the Board of the Company met 8 (eight) times on 29 May 2024, 19 June 2024, 23 July 2024, 14 August 2024, 22 October 2024, 05 November 2024, 16 January 2025 and 07 February 2025 respectively. Further details with regard to meetings attended by each Director are available in the Corporate Governance Report at Appendix 'D'.

7.4 Company's Policy on Directors Appointment and Remuneration

As your Company is a Central Government Public Sector Enterprise (CPSE), the appointment, tenure and remuneration of Directors (Functional Directors including the CMD) are determined by Government of India through Search & Selection Committee of the Public Enterprises Selection Board (PESB), the terms and conditions of appointment, including the period of appointment, the scale of pay and other entitlements are notified by the Government of India.

The Ministry of Defence (Administrative Ministry) appoints the Government Nominee Director and they are not entitled to any remuneration or sitting fees.

The Non-Executive Independent Directors are appointed by the Government of India and they are entitled to sitting fees for attending the Board/ Committee meetings as prescribed by the Board in accordance with the statutory rules and regulations.

Pursuant to exemption granted by the Ministry of Corporate Affairs, vide Government of India's Gazette Notification No GSR 463 (E) dated 05 June 2015, your Company, a Government Company, is not required to frame a Policy on Directors' appointment and remuneration including criteria for determining qualifications, evaluation etc., as per section 134(3)(e) of the Companies Act, 2013.

7.5 Board Evaluation

Pursuant to exemption granted by the Ministry of Corporate Affairs, vide Government of India's Gazette Notification No GSR 463 (E) dated 05 June 2015, the statement indicating the manner in which formal Annual Evaluation has been made by the Board of its own performance and that of its committees and individual Directors is not required for your Company, as the performance of Directors is evaluated by the Administrative Ministry.

7.6 Changes in the Board of Directors and Key Managerial Personnel

The following changes took place in the Directorship of the Company during the year under review: -

Shri. Amit Satija, Joint Secretary (DIN: 08989543) was appointed as the Government Director (Part Time Official Director) w.e.f 14 August 2024 in place of Shri. Anurag Bajpai, Additional Secretary (DIN: 08948155).

Cdr. Jasbir Singh, IN (Retd.), Director (DIN: 08556592) ceased to be a Director due to retirement on 31 October 2024.

Shri. Rajeev Prakash, Joint Secretary (DIN: 08590061) was appointed as the Government Director (Part Time Official Director) w.e.f 10 December 2024 in place of Shri. Amit Satija, Joint Secretary (DIN: 08989543).

Shri. Mallikarjunarao Bhyrisetty, Non-Official Independent Director (DIN: 06557777) ceased to be an Independent Director w.e.f 24 December 2024 on completion of his tenure on 23 December 2024.

Smt. Neeru Singh Jagjeet Kaur, Non-Official Independent Director (DIN: 09449410) ceased to be an Independent Director w.e.f 27 December 2024 on completion of her tenure on 26 December 2024.

Shri. Sanjeev Singhal, Director (Finance) (DIN: 07642358) of the Company, holding Additional Charge

of Chairman and Managing Director ceased to be Director due to superannuation from the services of the Company on 28 February 2025.

Shri. Biju George, Director (Shipbuilding) (DIN: 09343562), was conveyed the additional charge of the post of Chairman & Managing Director of the Company by MOD till the appointment of Capt. Jagmohan (Retd.) as Chairman & Managing Director w.e.f. 21 April 2025.

Shri. Ruchir Agrawal (DIN: 10166533) was appointed as Director (Finance) on the Board of the Company for a period of five years with effect from 07 March 2025. Shri. Biju George, Director (Shipbuilding) ceased to hold the additional charge of the post of Director (Finance) of the Company which was assigned to him w.e.f. 01 March 2025.

Cmde. S B Jamgaonkar, (Retd.) (DIN: 11017821), was appointed as Director (Submarine & Heavy Engineering) on the Board of the Company w.e.f. 25 March 2025 till the date of his superannuation i.e. 30 April 2027 or until further orders, whichever is earlier, Cdr. Vasudev Puranik, IN (Retd.) held the Additional Charge of Director (Submarine & Heavy Engineering) w.e.f. 28 May 2024 till 24 March 2025.

Capt. Jagmohan (Retd.) (DIN: 08630668), was appointed as Chairman & Managing Director on the Board of the Company w.e.f. 21 April 2025 till the date of his superannuation i.e. 30 September 2029 or until further orders, whichever is earlier.

Dr. Vivek Atul Bhuskute (DIN: 09417992), was appointed as Part-Time Non-Official (Independent) Director on the Board of the Company for a period of 1 year, with effect from 21 April 2025, or until further orders, whichever is earlier.

Smt. Veni Thapar (DIN: 01811724), was appointed as Part-time Non-Official (Independent) Director on the Board of the Company for a period of 1 year, w.e.f. 21 April 2025, or until further orders, whichever is earlier.

Shri. Kedarnath Gupta (DIN: 06460508), was appointed as Part-time Non-Official (Independent) Director on the Board of the Company for a period of 3 years, with effect from 21 May 2025, or until further orders, whichever is earlier.

Shri. Lalatendu Acharya was appointed as Company Secretary and Compliance Officer w.e.f 01 June 2025.

Smt. Madhavi Kulkarni ceased to be the Company Secretary and Compliance Officer w.e.f 01 June 2025.

7.7 Constitution of Audit Committee

Audit Committee pursuant to the provisions of Section 177 of the Companies Act, 2013 and the Rules made

thereunder has been constituted by the Board. The Committee acts in accordance with the terms of reference as approved by the Board. The composition and other details are disclosed in the Corporate Governance Report. All recommendations made by the Audit Committee were accepted by the Board.

7.8 Declaration and Meeting of Independent Directors

All Independent Directors of your Company have confirmed that they meet the criteria of Independence as prescribed under both the Companies Act, 2013 and the SEBI Listing Regulations. In the opinion of the Board the Independent Directors fulfill the conditions specified under SEBI (LODR) Regulations, 2015 and are independent of the management.

A Separate Meeting of Independent Directors in accordance with the provisions of the Companies Act, 2013 was held on 19 December 2024 and all the Independent Directors were present.

The Independent Directors have also confirmed that they have complied with the “Code of Business Conduct and Ethics for Board Members and Senior Management” of the Company.

In the opinion of the Board the Independent Directors fulfil the conditions specified under SEBI (LODR) Regulations, 2015 and are independent of the management.

7.9 Corporate Social Responsibility (CSR)

MDL is the only Shipyard which builds Destroyers class of Ships and conventional Submarines. While the warships and submarines built by us help in securing nation and making it formidable power, MDL believes in what Mahatma Gandhi said “a chain is as strong as its weak link”. Therefore, strengthening of weakest link is our mantra while undertaking CSR activities.

MDL is committed to undertake various programs for integrating social and business goals in a sustainable manner through inclusive growth so as to make a positive impact for the society at large. MDL has adopted Corporate Social Responsibility policy in compliance with Section 135 of the Companies Act, 2013 and Rules framed there under.

The CSR Budget of MDL for the FY 2024-25 was ^ 30.51 Cr (2% of average profit of the previous three financial years as per section 198 of Companies Act - 2013). In addition to above, a sum of 7 2.15 Cr was carried forward from the previous financial years as part of multi-year ongoing projects and an additional 7 0.21 Cr has been spent in excess of budget during FY 202324 which was also set off in expenditure for FY 202425. Out of total obligation of ^ 32.45 Cr, MDL has spent

^ 33.10 Cr (7 30.95 Cr against 2% of average net profit and 7 2.15 Cr against multi-year ongoing projects) towards CSR activities during FY 2024-25. Thus, MDL has complied with the requirement of spending 2% of average net profit with an excess amount spent of ^ 0.65 Cr as part of CSR expenditure for FY 2024-25, which will be set off against expenditure for FY 202526 in accordance with rules governing CSR expenditure.

MDL has executed 46 projects as part of its CSR initiatives mainly in sectors of Education, Health & Sanitation, Skill Development and Village Development. The executed projects are in line with Schedule VII of the Companies Act. The details of the major projects executed in FY 2024-25 are as under: -

a) Aspirational Districts: MDL has completed the project to support the Community Hospital at Gadchiroli District run by Society for Education, Action and Research in Community Health by providing medical equipment. In order to address the problem of malnutrition in Gadchiroli district, MDL has undertaken a project to provide 200 ml of Fortified flavored milk to 4000 Govt. School Students through NDDB Foundation for Nutrition.

MDL has also supported towards cataract surgery of 4000 persons in Gadchiroli, Chandrapur & Vidharbha region of Maharashtra in FY 202425. MDL has also undertaken construction of Anganwadi centers in the Aspirational District Nandurbar.

b) Healthcare & Nutrition: Your Company has continued undertaking new initiatives in the Healthcare sector in the FY 2024-25. Your company has continued its support to the Govt. Hospitals i.e. Sir J J Group of Hospitals, BYL Nair Charitable Hospital, LTMMC & GH Sion Hospital and King Edward Memorial Hospital, Byculla, Mumbai and thereby helped in equipping these hospitals with necessary medical items so as to serve the needy sections of the society.

Further MDL has completed treatment and surgeries for 175 children suffering from Congenital Heart Disease (CHD) at Sri Sathya Sai Sanjeevani Hospital in Navi Mumbai (Maharashtra) & Raipur (Chhattisgarh). Your company has also supported Charitable Hospitals/Trust like Indian Red Cross Society, Gwalior, Saidham Charitable Hospital, Rahuri (Ahilyanagar), Narmada Samagra Nyas (Alirajpur), Sewa Bharati Guntur etc. by providing medical equipment & mobile medical unit.

Cancer Care: Your company has given special focus towards cancer care/ treatment and undertook several projects in FY 2024-25. MDL has been pioneer in providing much needed support for vaccination against Cervical Cancer for 2800 adolescent girls between 9-14 Years in Maharashtra. MDL has supported 200 cancer patients financially getting treatment at Tata Memorial Hospital, Mumbai.

MDL has continued its support to two shelter homes in Mumbai & Navi Mumbai so as share the burden of high living cost required to be borne by the Cancer patients & their dependents who are required to visit Mumbai, for availing the cancer treatment facilities at reputed institution such as Tata Memorial Hospital etc.

MDL has provided support for intellectually deficient children and adults at Children's Home in Mankhurd for the benefit of 265 children who are basically victims of natural calamities, social apathy and loss of parents. In order to eradicate thalassemia from society, under Thalassemia Mukt Bharat Abhiyan, MDL has supported 105 Thalassemia patients with their medicinal needs.

Further, MDL has undertaken to support the medical & nutritional requirement of 150 orphans, destitute & homeless children in the age group of 0-7 years, 13-18 years at residential care institution run by Maharashtra State Women's Council Asha Sadan.

c) Education Sector: MDL has continued its support

for “MDL Super 10” project and by enrolling 20 new students to get quality education at Bhonsala Military School, Nagpur in FY 2024-25. A total of 44 students from tribal dominated Shahapur area (Thane district) have been provided support under this project.

MDL has continued its support to the educational institutions who are serving to the needy sections of the society like Bombay Utkal Samiti, Sri Saraswathi Sisu Mandir Sanchalitha Samithi, Sadguru Madhyamik Aashram Shala, Ek Kadam Aur Foundation, Vijnana Vihara Vidya Kendram Committee, thereby helped in upgradation of their infrastructure facility for providing at par education.

Further, MDL has continued its support towards 100 Abhyasikas (Tuition Centres) in Vijayawada Urban slum areas for educating 3000 underprivileged slum children.

d) Contribution to Indian Institute of Technology (IITs): Being part of Schedule VII of Companies Act, 2013 in order to promote efforts of Research & Development through support to Country's premier institutions, MDL has joined hands with IIT Bombay, IIT Hyderabad, IIT Chennai and IIT Indore. The research projects undertaken with IITs is expected to develop technologies in Marine/ Ocean/Naval fields which will benefit Startups, MSMEs & Indian Industry in particular.

e) Skill Development: MDL has continued

its support for Apprenticeship Training at Apprenticeship Training School, MDL Mumbai. MDL has also undertaken construction of one floor of Rural Youth Development Center at Nautakki, Vijayawada to impart vocational training.

f) Heritage: MDL has also boosted the functioning of the Museum Ship Khukri by completing significant enhancements, value additions for expanding visitor engagement and interest with the aim of establishing Museum Ship Khukri as a tourist attraction of international standards.

The CSR committee certifies that the implementation and monitoring of the CSR projects being executed are in accordance with the CSR objectives and policy of the company. The Annual Report on CSR contains the requisite details as specified in the Companies Act, 2013 and is placed at Appendix 'E'.

7.10 Environment and Pollution Control:

In alignment with the Government of India's policy to increase the quantum of renewable energy and to reduce energy consumption various projects were undertaken by your Company. MDL is committed to reduce the consumption of energy generated by fossil fuel and to increase the generation of renewable energy to the maximum possible extent. MDL has already installed 1.85 MWp roof top Solar Power Plant.

Information required under Section 134(3)(m) of the Companies Act, 2013, pertaining to Conservation of Energy, Technology Absorption is given in Appendix 'F' to this Report.

7.11 Swachh Bharat Initiatives

In line with the Swachh Bharat Mission of Government of India, your Company has continued the clean-ship of areas/wards in Mazagon, Mumbai:

a) Clean-ship of adjacent areas/roads of MDL by external agency: MDL has engaged a clean-ship -

specific agency for carrying out daily cleaning of roads (approx. 4.5 km) adjacent to MDL.

b) Celebration of 'Swacchata hi Seva 4.0 Campaign' from 17 September 2024 to 02 October 2024.

Cleanliness drive (Shramadaan) was organized from 17 September 2024 to 02 October 2024 within and surrounding areas of MDL and conducted various outreach activities like:

1. Identifications of Scraps

2. Segregation of records and weeding of old records

3. Cleanliness drive in MDL residential Complex

4. Cleanliness drive (Shramadaan) in the surrounding public areas viz road, and market areas

5. Plogging (Picking of Single Use Plastic) and collection of Plastic waste

6. Tree Plantation

c) Celebration of Swachhta Pakhwada, 2024 from 01 December 2024 to 15 December 2024. In accordance with the Ministry's guidelines promulgated, various outreach activities has been conducted from 01 December 2024 to 15 December 2024 at MDL.

7.12 Particulars of Employees and Related Disclosures

In accordance with the Ministry of Corporate Affairs notification no. GSR 463(E) dated 05 June 2015, Government Companies are exempt from Section 197 of the Companies Act, 2013 and rules thereof regarding disclosure of particulars of employees drawing remuneration in excess of the specified limit.

7.13 Extract of Annual Return

In terms of the Companies Act, 2013 as amended, the Annual Return is available on https://mazagondock.in/ English/pages/Annual-Return

7.14 Directors' Responsibility Statement

As required under Section 134(3)(c) and 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, confirm that: -

a) in the preparation of the Annual Accounts for FY ended on 31 March 2025, the applicable Accounting Standards have been followed and that there are no material departures.

b) they have selected such Accounting Policies and have applied them consistently and made

judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the FY 2024-25 and of the Profit and Loss of the Company for the FY ended on 31 March 2025;

c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, as amended from time to time, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) they have prepared the Annual Accounts for the FY ended on 31 March 2025 on a going concern basis;

e) they have laid down Internal Financial Controls to be followed by the Company and such Internal Financial Controls are adequate and are operating effectively and

f) they have devised proper systems to ensure compliance with the provisions of all the applicable laws and such systems are adequate and operating effectively.

7.15 Statutory Auditors and their Report

The Comptroller and Auditor General of India under Companies Act, 2013 appointed M/s. C.R. Sagdeo & Co, Chartered Accountants, Mumbai as the Statutory Auditors of the Company for the FY 2024-25, as MDL is a CPSE. The Auditors have certified the Accounts and their Report is placed as a part of Annual Report.

The Notes on the Financial Statements referred to in the Auditors' Report are self-explanatory and do not call for further comments. During the year under review, no fraud has been reported by the Auditors under section 143(12) of the Companies Act, 2013 read with Rule 13 of the Companies (Audit and Auditors) Amendment Rules, 2015.

7.16 Comments of the Comptroller & Auditor General of India

The Comments of the Comptroller and Auditor General of India under Section 143 of the Companies Act, 2013 forms part of this Annual Report.

7.17 Cost Auditors

M/s. Dhananjay V Joshi & Associates, Mumbai were appointed as Cost Auditors for conducting Cost Audit of the Company under Section 148 of the Companies Act, 2013 for the FY 2023-24 and FY 2024-25 and accordingly such accounts and records are made and maintained.

7.18 Secretarial Audit

M/s. Ragini Chokshi & Co., Practicing Company Secretaries, Mumbai were appointed to conduct Secretarial Audit of the Company for the FY 202425 pursuant to the provisions of Section 204 of the Companies Act, 2013 and Regulation 24A of the SEBI Listing Regulations. The Report of the Secretarial Audit in Form MR-3 is annexed to the Board's Report as Appendix 'J' and forms part of this report. The Report does not contain qualification, reservation or adverse remark except that “As per Regulation 17 of the SEBI (LODR), 2015, and the DPE Guidelines on Corporate Governance, the Company could not comply with the following requirements such as Fifty percent of the Board of Directors as Non-Executive Directors w.e.f 25 March 2025, Independent Directors w.e.f. 23 December 2024, an Independent Woman Director w.e.f. 27 December

2024, and non-availability of a minimum of six directors during the period from 01 March 2025 to 06 March 2025. "

In this regard, it is clarified that your Company being a Government Company, falls under the Administrative Control of the Ministry of Defence, Department of Defence Production. The power to appoint Directors (including Independent Directors) and finalizing the terms and conditions of appointment vest with the Government of India. The matter regarding appointment of required number of Independent Directors is being taken up with the Administrative Ministry from time to time and the Government is seized of the matter.

7.19 Adequacy of Internal Financial Controls with Reference to the Financial Statements

a) The Company has an Internal Audit Department, which monitors compliances of Company's procedures and policies with well-defined Annual Audit Program and significant audit observations are reported to the Audit Committee of Board of Directors. The Internal Audit function is headed by AGM/HOD (Internal Audit) who is reporting directly to the Chairperson & Managing Director of the Company.

b) Internal Audit of specific areas of the Company's operations has been outsourced to Chartered Accountant firm. In addition to outsourced audit activities, other audit activities are carried out by in-house Internal Audit department. Audit reports given by Internal Auditors were reviewed by Audit Committee and necessary directives were issued. The Company had initiated suitable actions on the said directives.

8. Management Discussion & Analysis Report

As per Regulation 34(2) (e) of the SEBI Listing Regulations, the Management Discussion and Analysis Report is attached to this Report as Appendix 'G'.

9. Business Risk Management

As per Regulation 21 of the SEBI Listing Regulations, the Company has constituted a Risk Management Committee and its terms of reference, Risk Management Policy etc. are set out in the Corporate Governance Report.

Details of any application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end of the financial year - Nil

Details of the difference between the amount of valuation done at the time of one-time settlement and the valuation done while taking loans from banks or financial institutions, along with the reasons for such differences - Not applicable

10. Business Responsibility Sustainability Report (BRSR)

In terms of Regulation 34(2)(f) of SEBI (LODR) Regulations, 2015 the Company has prepared Business Responsibility and Sustainability Report (BRSR) on Environment, Social and Governance (ESG) parameters in the prescribed format for the FY 2024-25 along with reasonable assurance Report of BRSR Core, which is received from Independent Assurance Provider , JointValues ESG Services Pvt. Ltd. which is available on the Company's website at https:7mazagondock.in/ English/pages/Business-Responsibility-and-Sustainability- Report

11. Future Outlook

Your Company has envisaged following measures of future outlook.

a) Infrastructure:

1. Your Company has taken up setting up a green field shipyard at its Nhava Yard in phased manner with short term and long term developments plan. Short term development shall enable MDL to facilitate the immediate use of the existing infrastructure for shipbuilding and ship repair business whereas long term development is to facilitate construction of large size vessels and submarines including major refit and repairs. The facilities include construction of Dry Dock cum Wet Basin, Grand Assembly Area, Hard Stands,

provision of Goliath Cranes of 400T, LL Cranes 50T to 120T, Workshops, Stores, offices and Allied Services.

2. Your Company has taken up development of newly acquired land parcel of approx. 15 acres at adjacent MPA land to facilitate construction of large size vessels and submarines including major refit and repairs.

3. Your Company is setting up a New Fabrication Workshop including stores at Alcock Yard in MDL Premises.

b) Diversification:

1. MDL has also diversified its portfolio and is undertaking the Maintenance, Repair & Overhaul (MRO) and spare parts of MI-17 helicopter of Nepalese Army.

2. Reinitiated the Heavy Engineering and Offshore Projects vertical and obtained orders from ONGC for Part Replacement of Pipeline Project worth approx. 7 7000 Cr.

3. MDL has offered and undertaken maintenance support for scorpene submarines of Malaysian Navy.

c) Exports:

1. Your Company has a rich legacy of building 805 platforms since its inception, which includes a broad spectrum of exports carried out in the past and comprising of more than 240 vessels. The impeccable quality of the products delivered to date which have been internationally acclaimed is being leveraged in a concerted manner to rejuvenate the thrust for exports in consonance with GoI impetus in increasing Defence Exports. MDL's export portfolio covers a wide gamut of products comprising of new builds for Civilian and Military end- use, repairs of commercial vessels and Refits and Repair of warships/Submarine.

2. Your Company intends to revamp its presence in the export market. MDL has been in dialogue with various Indian Embassies/High Commissions abroad to expand its product outreach to prospective customers. MDL is participating aggressively in the global tenders issued by various countries and are in dialogue with

foreign navies to fulfil their requirements. d)

The commercial shipbuilding sector worldwide is passing through a down turn and MDL is deeply aware of the situation. Nevertheless, the Defence needs in the international market continues to rise. MDL has certain unique strengths and skill sets that have been painstakingly developed in the past decades and are adapted in the complex activities of weapon integration sensors for high tech Defence platforms.

This gives a cutting edge advantage for MDL against their competitors and MDL is all set to cash-in this scenario. MDL has also appointed Marketing Representatives/

Channel Partners for canvasing MDL's rich legacy in construction of Naval and Commercial vessels and promoting MDL's products in the global market.

The Marketing Representatives/ Channel Partners will also facilitate expansion and growth of MDL business in near future.

3. Your Company's strategic positioning on the west coast of the country provides proximity to the main sea routes crisscrossing the Arabian Sea and Indian Ocean with accessibility to Europe and Middle East. Tie-ups with other small shipyards in the country are in place. MDL has aligned itself with the new thrust on Defence exports.

4. MDL is expecting an export order for construction of additional four (04) units of 7,500 DWT Multi-Purpose Hybrid Powered Vessels from Navi Merchants,

Denmark.

5. Leads of various marine platforms are being aggressively and expeditiously pursued for bagging export orders.

6. Products mentioned under R&D and diversification have huge export potential.

MDL is in touch with Indian Embassies and also with authorized agents for export opportunities. MDL is also participating in various National & International level Defence Exhibitions like Defexpo, Aero India etc. to give impetus to export. MDL has facilities & capacity for fabrication of Pressure hull sections. Export of Pressure Hull sections to any other country manufacturing/ procuring Scorpene class Submarines is being explored.

Parallel lines for Submarine Construction:

MDL has augmented necessary infrastructure for Submarine construction through a modernisation project. Presently, high skill level has been developed in MDL for Submarine construction and at the same time local vendors have been developed for complex and high quality fabrication jobs. The skilled workforce of MDL and vendors are ready to take on new challenges in submarine construction. Post infrastructure augmentation, MDL submarine building capacity has been enhanced substantially to cater for two dedicated Submarine Assembly Lines fully ready for operations. With these assembly lines, MDL has a capacity to undertake construction of 11 Submarines at any given time.

Acknowledgements

Your Directors wish to place on record their gratitude and sincere appreciation for the assistance, co-operation and guidance received by the Company from various Ministries of the Government of India especially the Ministry of Defence, Department of Defence Production, the Indian Navy, Greater Mumbai Municipal Corporation, Mumbai Port Trust, Principal Controller of Defence Accounts (Navy), the Departments of Customs, Income Tax and GST.

Your Directors also place on record their appreciation for the assistance extended by the Company's Bankers, the valuable advice rendered and co-operation extended by the Statutory Auditors, M/s. Sagdeo & Co., Mumbai, and the officers of the Principal Director of Commercial Audit and Ex-Officio Member of the Audit Board, Bengaluru. Your Directors express their gratitude to the clients, who have extended patronage to the Company. Your Directors also appreciate and acknowledge the devoted efforts put in by the Company's employees at all levels.

Sincere thanks also to all the Stakeholders for having unwavering confidence in the Company and willingness to extend all support to the Company.

For and on behalf of the Board Sd/-

Capt. Jagmohan (Retd.)

Chairman & Managing Director DIN:08630668

Place: Mumbai Date: 06 August 2025