Cochin Shipyard Ltd Management Discussions

Forward Looking Statements

1. Statements in this Management Discussion and Analysis of financial condition and results of operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include governments strategy relating to

acquisition of naval platforms, changes in government regulations, tax laws, economic developments within the country and such other factors globally. The financial statements are prepared under historical cost convention, on accrual basis of accounting and in accordance with the provisions of the Companies Act, 2013 and comply with the Accounting Standards specified under Section 133 of the said Act. The Company has used estimates and judgements relating to the financial statements on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner, the state of affairs for the year.

2. The following discussions on our financial condition and result of operations should be read together with our audited financial statements and the notes to these statements included in the annual report.

Shipbuilding Industry

Global Shipbuilding Industry

3. Global GDP was reported to be 3.2% which is slightly better than the forecasted figure of 3.1% as per IMF report. Indian GDP growth is reported to be 6.4% against 6.8% as projected. Similarly, the trade volume which increased at 2.9% as expected in 2024 which was expected to grow in similar lines may get heavily impacted by the new tariffs and trade wars across the spectrum which may impact the vessel occupancy and demand negatively impacting the shipping demand in the coming year.

4. Regarding cargo volumes, last year brought varied performances across different segments. Dry bulk and oil & gas trades both decelerated as their growth declined from 3.4% to 1.7% and from 3% to 2.6%, respectively. However, the container liner segment saw a significant rebound of 3.8%, approaching levels not seen since 2021 when the world was exiting COVID. The global landscape remained unpredictable in 2024 as the Ukrainian war persisted and conflicts in the Middle East continued unabated. Houthi attacks in the Red Sea have essentially cut off one of the worlds most crucial and busy waterways between East and West. Meanwhile, the US presidential election and declarations of increased tariffs that could lead to economic warfare sparked interrogations, although the full impact on shipping markets remains hard to predict and brings uncertainty to the future market.

Dry Bulk Oil & Gas Container

Source: BRS Annual Review 2025

5. Last year, the shipbuilding market continued to flourish despite increasing delivery times and higher prices that showed no signs of weakening. New orders surged by more than 50% (DWT basis) compared with 2023, which had already seen a 37% increase on 2022. One striking feature of 2024 was that China significantly grew its order book, boosting its share of the global shipbuilding market by 9.7%, further solidifying its dominant position at the expense of Japan (-4.3%) and South Korea (-5.1%).

Meanwhile, robust market conditions discouraged owners from recycling their older tonnage.

Summary	2022	2023	2024
Orders	93.6	128.4	193.1
	1,698	2,045	2,488
Deliveries	80.1	83.6	86.0
	1,377	1,388	1,564
Orderbook	239.1	281.7	387.3
	3,958	4,560	5,468
Active Fleet	2,146	2,219	2,298
	42,242	43,321	44,607
Orderbook/Active Fleet	11.1%	12.7%	16.9%
	9.4%	10.5%	12.3%

Only Bulk, Tankers and Containers Source: BRS Annual Review 2025

6. Standard vessels (bulkers, tankers, container carriers) in 2024 observed dramatic growth in newbuilding orders from already- elevated levels, rising from 128.4 MN DWT to 193.1 MN DWT However, deliveries, which reflect the prevailing shipbuilding output, only slightly increased from 2023. Container liners saw the largest rise in new orders last year as they more than doubled to 49.8 MN DWT from 20.6 MN DWT in 2023. The major container lines have continued their large vessel ordering spree. Many

yards, which had begun to focus on other segments due to the contraction in container orders in 2023, shifted their attention back to containerships. However, container carriers were not alone in contributing more orders; the tanker segment grew

7. Specialised vessels segment for the third consecutive year, new building activity for specialised tonnage remained strong with around 20 MN DWT ordered. This was broadly on par with 2022 and 2023 when 18.6 MN DWT and 15.3 MN DWT were ordered, respectively. For comparison, the 2012-21 annual average was 7.5 MN DWT Similarly, new orders were seen in small numbers for the Oil and Gas support vessels (AHTs/ PSVs) after a long gap in the market indicating ageing replacement market making a comeback.

World Fleets & Orderbooks

Total Cargo		Year End						Orderbook & Delivery Schedule
Fleet, m. Dwt	2021	2022	2023	2024			No.	m.Dwt	% Fleet	2025	2026	2027+
CRUDE TANKERS	434.9	453.1	461.6	462.5	2,327	462.4	242	49.9	10.8%	6.4	16.8	26.7
PRODUCTS TANKERS	196.0	199.5	203.5	206.9	10,339	208.6	691	40.2	19.3%	10.7	13.6	15.8
CHEMICAL TANKERS	48.9	50.4	51.5	53.2	4,299	53.4	484	9.2	17.2%	2.5	3.5	3.1
OTHER TANKERS	1.0	1.0	1.1	1.1	429	1.1	0	0.0	0.0%	0.0	0.0	0.0
BULKERS	947.8	975.3	1,005.2	1,035.0	14,204	1,040.3	1,356	108.8	10.5%	32.6	40.3	36.0
COMBOS	1.1	1.1	1.1	1.1	12	1.1	0	0.0	0.0%	0.0	0.0	0.0
LPG CARRIERS	28.4	30.2	33.2	35.0	1,686	35.1	298	13.1	37.3%	1.7	3.7	7.8
LNG CARRIERS	55.6	58.1	60.7	65.6	817	66.4	341	31.8	47.9%	8.5	8.6	14.8
CONTAINERSHIPS	296.0	307.7	331.6	363.8	6,838	367.9	793	93.8	25.5%	19.5	16.4	57.9
MULTI-PURPOSE	30.3	31.1	31.3	31.6	3,365	31.8	202	4.2	13.1%	1.6	1.0	1.5
GENERAL CARGO	43.0	44.4	45.5	46.6	16,921	46.5	436	3.1	6.6%	1.5	1.2	0.4
RO-RO	7.2	7.4	7.5	7.7	837	7.7	21	0.2	2.6%	0.2	0.0	0.0
CAR CARRIERS	12.4	12.5	12.7	13.6	829	13.8	201	4.4	32.0%	1.3	1.3	1.9
REEFERS	4.5	4.5	4.4	4.4	1,551	4.4	31	0.4	8.0%	0.2	0.1	0.1
OFFSHORE (AHTS/PSV)	9.2	9.2	9.2	9.2	4,349	9.2	138	0.4	4.5%	0.1	0.2	0.1
WORLD CARGO FLEET	2,116.4	2,185.5	2,260.0	2,337.3	68,803	2,349.8	5,234	359.4	15.3%	86.8	106.6	165.9
TOTAL WORLD FLEET	2,203.8	2,275.6	2,352.5	2,431.9	112,812	2,444.7	6,890	366.4	15.0%	88.9	108.5	169.0
TOTAL WORLD FLEET ($bn)*	1,310.2	1,290.6	1,375.6	1,523.2		1,510.9		488.4	32.3%	116.2	133.5	238.7

Source: Clarksons Report

8. Currently, there are about 348 operational shipyards worldwide, having either secured new contracts or completed deliveries in the past year. This is roughly 50% of 2007s peak of around 700 active yards. It is noteworthy that recent years have seen significant consolidation among shipyards. This has reduced the total number of active yards but increased overall production capacity, while dormant yards are being revitalised and brought back into operation.

9. Regarding order book position, China continues to dominate the shipbuilding industry, accounting for nearly three- quarters of global shipbuilding orders. This dominance has raised concerns in other nations, prompting discussions on revitalizing domestic shipbuilding capabilities. India has reaffirmed its presence in the international shipbuilding market, climbing in the group of countries other than big three (China, Korea, Japan) and Europe from sixth to fourth place with 68 ships on order, up from 48 in 2023 and 30 in 2022. Main contributions being Chowgule Shipyard secured six contracts for 10,740 DWT general cargo ships for Dutch company Vertom at its new Mangalore facility. State-owned Cochin Shipyard won orders for eight 6,375 DWT general cargo ships for Norways Wilson. Mazagon Shipyard is building six 7,500 DWT general cargo ships for Denmarks Navi Merchants, while Garden Reach Shipyard (GRSE) has four 7,800 DWT dry cargo ships.

10. New building prices for bulkers, tankers and container carriers saw only modest increases in 2024. The Chinese New building Price Index (CNPI), produced by a panel of

11. Similar to 2024, which was a strong year for ordering (second only to 2007), with order books for some segments already stretching to 2028 and beyond, 2025 may not be as buoyant but there are several factors such as the need to meet new environmental rules and regulations, the need to replace an ageing fleet and the need to reduce speed to comply with intermediate requirements like the CII can keep the order book build up to continue. However, there remains potential for a new super-cycle in the shipbuilding industry to replace the large number of vessels that were delivered between 2005 and 2010.

Indian Shipbuilding Industry and Government Initiatives

12. Indias shipbuilding and shipping sectors are undergoing strategic transformation under the Government of Indias long-term maritime vision. Through the Maritime India Vision 2030 (MIV 2030) and Maritime Amrit Kaal Vision

2047 (MAKV 2047), the Government has set ambitious shipbuilders and shipbrokers, strengthened by 6% in 2024.

Individual indices related to bulkers, tankers and container carriers, meanwhile, rose by 7%, 7% and 3%, respectively. After a slight uptick in the first and second quarters, prices stabilised. The booming container market played a key role in driving prices up, with second-hand vessel values also rising considerably. Meanwhile, shipyard costs have been steadily rising. Salaries are up, but the more significant factor has been price hikes from suppliers, driven by inflation and higher demand. Despite the apparent "boom in the market, shipyards are still facing difficulties. Growing construction costs seem to be outpacing the rise in new building prices, leaving shipyards less satisfied than one might expect. targets to elevate Indias position to the 10th largest globally in ship owning and shipbuilding by 2030, and 5th by 2047. These targets are supported by targeted policy interventions and infrastructure development programs.

13. The Government estimates that an addition of 4-5 million gross tonnes (GT) of annual shipbuilding capacity over the next 23 years. The cumulative shipbuilding output is projected to be valued at USD 237 billion to carry Indian cargo, with an additional USD 142 billion in potential value addition from ancillary suppliers. Realizing this scale will require an estimated investment of approximately USD 18 billion across shipbuilding, repair, and ancillary sectors. Key policy measures include the Shipbuilding Financial Assistance Policy (SBFAP) 2.0, which provides financial support to promote domestic ship construction, with enhanced incentives for larger, technologically advanced, and green vessels operating on alternative fuels like ammonia, methanol, hydrogen, and hybrid propulsion systems.

14. The Government is also fostering the development of integrated shipbuilding clusters in potential coastal states such as Gujarat, Odisha, Andhra Pradesh, and Tamil Nadu. The factors such as deep-draft coastal land, industrial and social infrastructure, skilled workforce, and state backed ecosystem makes these locations worthy of consideration to establish shipbuilding clusters.

15. To address capital cost barriers, a dedicated Maritime Development Fund (MDF) of RS.25,000 crore has been announced in the Union Budget 2025-26. The MDF aims to provide long-term financing for vessel acquisition, shipyard development, ship repair infrastructure, and inland/ coastal transport systems.

16. The Shipbreaking Credit Note scheme further incentivizes ship recycling in India. It allows ship owners to receive a credit equivalent to 40% of a ships scrap value, redeemable against the cost of constructing a new vessel at an Indian shipyard. Over the next decade, approximately 17 million tonnes (LDT) of foreign vessels and 5,71,000 tonnes (LDT) of Indian vessels are expected to be scrapped.

17. To boost internal demand, the Government has initiated demand aggregation across key user ministries. This includes the procurement of 80 ships by 2035 with an estimated value of ~USD 2.8 billion, 200 green tugs under the Green Tug Transition Programme (GTTP) by 2036 (~USD 2.6 billion), and 1,000 inland vessels under the Harit Nauka programme by 2035 (~USD 1.2 billion). In addition, a projected requirement of 40 dredgers by 2030 has been identified, representing a market opportunity of approximately USD 2.3 billion.

18. In ship repair, significant progress has been made with the operationalization of the International Ship Repair Facility (ISRF) in Kochi. A second ship repair cluster is planned at Vadinar, with a project report under review and a projected investment of approximately USD 200 million.

19. Other enabling measures include the extension of import duty exemptions on shipbuilding materials and infrastructure status for large vessels, both aimed at reducing cost and enhancing competitiveness.

20. To facilitate global cooperation, India has engaged with leading friendly shipbuilding nations such as Japan and South Korea to attract foreign investment and promote joint ventures in the maritime sector. Additionally, international shipping lines have been encouraged to flag vessels in India, which is expected to further stimulate domestic shipbuilding activity. The Government has also formulated attractive tax framework for ship owning and leasing in GIFT City which is further expected to boost shipbuilding industry.

21. Overall, the government is showing a clear intent to position India as a major global hub for shipbuilding and ship ownership and towards this laying the groundwork for a globally competitive and resilient maritime ecosystem.

Constitution of ViBhaS and NAVIC Functional Cells at MoPSW

22. Identifying the need for a theme based focused approach towards effective monitoring and implementation of Governments broad objectives as enlisted in the Maritime India Vision 2030 (MIV 2030) and Maritime AmritKaal Vision 2047 (MAKV 2047) to work towards a Viksit Bharat, the Ministry of Ports, Shipping and Waterways (MoPSW) constituted a total of 20+ Viksit Bharat Sankalp (ViBhaS) Cells and Neel Arth Vision Implementation Cells (NAVIC).

23. These Cells cover key areas such as Traffic-Cargo, Projects Schemes & PPP, Shipbuilding-Repair-Recycling, Maritime Finance, Technology, Legal, HR, etc. and have a twotiered framework with ViBhaS members primarily being senior officers from MoPSW for review, monitoring & coordination whereas NAVIC members being from various organizations under MoPSW (Major Ports, DGS, IWAI, etc.) focused on implementation.

24. The MIV 2030 & MAKV 2047 initiatives are organized into two broad categories for implementation and monitoring: one under the ViBhaS Cells and the other under the NAVIC Cells. The ViBhaS Cells are primarily responsible for overseeing the policies, legislation and Government of India level solutions and initiatives. They also provide guidance/ inputs to the NAVIC Cells. The NAVIC Cells focus on implementation of MIV/ MAKV initiatives and provides inputs/ feedback to ViBhaS Cells where Governments intervention is required.

25. The ViBhaS and NAVIC Cells have played a pivotal role in advancing key reforms and initiatives across the maritime sector. Notable contributions include the revamping of the Shipbuilding Financial Assistance Policy (SBFAP) 2.0, launch of the Credit Note Scheme to incentivize ship recycling in India, establishment of the Maritime Development Fund, and facilitation of import duty exemptions to support industry growth. Further, active engagement is underway with leading friendly shipbuilding nations to foster partnerships in areas such as shipbuilding, repair, and maritime skilling. In parallel, several initiatives have been launched and are on the anvil to promote indigenisation in ship technology, aimed at strengthening domestic capabilities and fostering self-reliance in the sector.

26. CSL a key Public Sector Undertaking under MoPSW, plays a vital role in this institutional mechanism with active involvement of its Officers in 21 ViBhaS and NAVIC Cells. The Chairman & Managing Director of CSL serves as the Nodal Officer for the Shipbuilding-Repair-Recycling Cell, while other Senior Officers including the Whole-time Directors act as conveners of five critical Cells, contributing significantly to the strategic and operational goals of the Governments maritime vision roadmap.

27. The ViBhaS and NAVIC Cells are set to play a central role in achieving the Governments vision outlined in the MIV 2030 and MAKV 2047. This institutional mechanism bridges the gap between vision and execution, enabling focused planning and seamless policy-to-practice translation.

Some Key Sectors focused by CSL which is in line with the International marker drivers coupled with Indian demand is:

Tugs and Port Crafts

28. The policy of the Ministry of Ports, Shipping and Waterways (MoPSW), under ASTDS continued to show improved demand for the building of harbour tugs and the Company through its wholly owned subsidiaries viz., Udupi-CSL and Hooghly-CSL are actively working to bag many more orders. Further, with the new GTTP program on green tugs, the Company is ready to roll its green tugs meeting the Green Tug Transition Program (GTTP) guidelines which is likely to bring many more orders to the Company.

Short sea/ Coastal

29. The new generation vessels with alternate fuels and green technologies are indicating huge potential in the replacement market of ageing short sea European shipping segment. The Company was successful in bagging such projects with innovative technologies to meet the new regulations. Further order intake is likely in the coming year as well.

Inland vessels

30. The government is focussed on improving the port and inland water infrastructure. This enhances the opportunity for the Indian yards to participate in this market with improved demands. The Companys pilot project of a hydrogen fuel cell powered catamaran vessel is ready for operationalisation in Varanasi. Similar projects are under discussion and it is expected to generate good demand. Further discussions are underway for water metro battery hybrid passenger ferries and likely to be implemented in various urban mobility Indian markets.

Renewables and Offshore Wind Segment

31. The renewable energy mix in the overall power generation continued in the world energy segment due to the compelling reasons to meet green energy mix targets. New large offshore wind farm infrastructure in deep ocean is expanding and the demand for various types of vessels to support the development, operations and maintenance of infrastructure for offshore wind farms such as Commissioning Service Operation Vessels (CSOV) market where CSL has established footprint is likely to further enhance the order book on such projects.

Defence Shipbuilding

32. The Indian defence shipbuilding industry is well poised with huge outlay by the Government of India (GOI) and CSL is very much involved in many of the future projects which are under discussions.

Large Merchant vessels

33. Even though CSL in the past built merchant vessels for carrying liquid and bulk cargo, for the last 18 years, the Company could not make much inroads due to market conditions and stiff competition to offer large tonnage vessels meeting market expectations. However, with the new large dry dock coming into action coupled with the GOI policy to promote large tonnage vessels demand aggregation for Indian build Indian owned vessels, CSL is sensing a good opportunity to enter this market and bring better value to the Company.

Ship Repair Industry

India & the Global Ship Repair Industry

34. The current Global ship repair market is expected to reach $40 billion+ by 2030. Asia-Pacific (APAC) dominates the ship repair and maintenance services market because of the increased sea-borne trade activities within the region. Shipyards in China, Singapore, Korea and Middle East largely due to the availability of skilled workforce and latest technology has always been in the forefront of the Ship repair industry. The global market for ship repair and maintenance service is expected to witness significant growth, supported by developments in the markets in South East Asia and India. Europe is also expected to witness significant growth during the forecast period of 2024 to 2029 due to the improvements in region. Though Indias share in global ship repair is currently less than 1%, the country is favourably located in respect of the major trade routes/ shipping routes with 7 to 9% of the global trade passing within 300 NM of the coastline. Additionally, India is poised well to offer repair services in the Defence segment

providing an array of ship repair services catering to both the Indian defence and the International Navies as more significance has been accorded to the Indian Ocean Region (IOR) being the important sea route to be protected.

35. Indias annual ship repair market is estimated to be around RS.2,000 Crores, with an overall estimated potential of RS.6,000 Crores. However, more than 30% of the commercial ship repair is conducted outside India catering this market. Nevertheless, over the next 10 years, India has the potential to create RS.14,000+ Crores Ship repair market which is critical to indigenize the ship repair business in the country.

36. India has a strong workforce that can potentially cater to the labour-intensive ship repair industry. However, the untapped potential in the Indian ship repair market can be attributed to the presence of competing international ship repair yards on major trade routes and a capability gap of Indian yards in repairing certain types of vessels. Other reasons for the cost disadvantage include high financing costs, lack of readily available ship spares in India, insufficient ancillary support and technology-related issues that increase the ship repair execution cycle time.

37. To address these gaps, the Government of India, under the MIV 2030 initiative, is actively supporting the industry through multiple initiatives. These include channelising domestic demands by leveraging the AatmaNirbhar Bharat (Self-Reliant India) policy, developing infrastructure through better access to financial instruments and providing better opportunities for overall development and enhanced business in the industry by creating free trade depots and maritime clusters.

CSL initiatives in Ship repair

38. With the new International Ship Repair Facility (ISRF), CSL ship repair infrastructure has been made world class enabling to take up additionally about 100 vessels a year. This facility at Willingdon Island, Kochi hosts a state-of-the- art ship lift system with six independent work stations. The Facility was commissioned on August 12, 2024 with the first vessel HSC Parali being docked for repairs. This new

greenfield facility, in close proximity to the Southern Naval Command in Kochi would be capable of accommodating vessels up to 130 Mtr. length & 6000 T displacement.

39. In April 2024, CSL signed the prestigious Master Ship Repair

Agreement (MSRA) with the US Navy, after a rigorous capability assessment enabling repairs to US Naval Vessels thus enhancing the Yards global reputation.

40. CSL Ship repair business has grown leaps and bounds. In addition to the ship repair facilities at Kochi, the Company has also established ship repair units at Mumbai, Kolkata and Port Blair. The Ship Repair Division is focusing on

increased business volumes. The Yard is also focussing on entering new areas of ship repair market such as weapons platforms, offshore fabrications, conversions etc.

41. In April 2025, CSL signed an MOU with Drydocks World, a DP World company, under the aegis of the Ministry of Ports, Shipping and Waterways, Government of India, to enable development of Ship repair clusters, synergizing mutual strengths. This is expected to bring global best practices to the Ship repair ecosystem in the country and add significant capacities.

42. With GOI, MIV 2030 in place and fuelled with various initiatives including governments initiative for setting up of ship repair clusters in India, CSL is well poised for vibrant ship repair business times in the future.

Operations

43. The total turnover of the Company is RS.4,527.84 Crores as against the previous year of RS.3,645.28 Crores. The shipbuilding income during the year is RS.2,663.27 Crores

as against the previous year income of RS.2,638.91 Crores. The ship repair income during the year is RS.1,864.57 Crores as against the previous year income of RS.1,006.37 Crores. During the year CSL successfully delivered five nos. of Hybrid Electric Catamaran Hull vessels to Kochi Metro Rail Limited (KMRL). Shri Sarbananda Sonowal, Honble Minister of Ports, Shipping and Waterways laid the keel (in virtual mode) for 12000 Cu.M capacity Tailing Suction Hopper Dredger being built for Dredging Corporation of India (DCI).

Financial Information

44. The financial information of the Company pertaining to the last decade is given below:

(Amount in Crores unless otherwise stated)

Financial Year	Paid up capital	Nominal value of shares (? per share)	Capital employed	Net worth	Profit Before Tax	Tax on Profits	Net Profit	EPS (?)	Dividend	Payout ratio
2024-25	131.54	5	5,549.91	5,610.65	1,133.85	290.94	842.91	32.04	256.50	0.30
2023-24	131.54	5	4,971.89	5,025.87	1,093.62	280.52	813.10	30.91	256.50	0.32
2022-23	131.54	10	4,480.05	4,423.42	448.51	114.02	334.49	25.43	223.62	0.67
2021-22	131.54	10	4,355.75	4,359.18	794.39	207.82	586.57	44.59	220.33	0.38
2020-21	131.54	10	3,964.27	3,977.57	810.59	200.49	610.10	46.38	203.89	0.33
2019-20	131.54	10	3,748.78	3,731.80	863.43	225.74	637.69	48.48	218.75	0.34
2018-19	131.54	10	3,327.72	3,332.08	751.38	270.20	481.18	35.72	171.00	0.35
2017-18	135.94	10	3,271.03	3,255.87	604.86	208.11	396.75	31.03	163.12	0.41
2016-17	113.28	10	2,062.02	2,028.58	493.40	171.85	321.55	28.39	101.61	0.32
2015-16	113.28	10	1,749.31	1,814.33	419.65	145.86	273.79	24.07	86.65	0.32

Key Financial Ratios

Sl. No.	Particulars	FY 2024-25	FY 2023-24	Change (in %) as compared to FY 2023-24	Detailed explanation for change of 25% or more
1.	Debtors Turnover	13.52	8.52	58.69	Due to increase in turnover and reduction in trade receivables.
2.	Inventory Turnover	3.34	5.57	-40.04	Due to project specific materials and equipment held in stock for the vessels currently at various stages of construction.
3.	Interest Coverage	17.4	15.49	12.33	N.A.
4.	Current Ratio	1.34	1.32	1.52	N.A.
5.	Debt Equity Ratio	0.00	0.00	0.00	N.A.
6.	Operating Profit Margin (%)	25.85	30.87	-16.26	N.A.
7.	Net Profit Margin (%)	18.62	22.31	-16.54	N.A.

Return on Networth

Particulars	FY 2024-25	FY 2023-24	Change (in %) as compared to FY 2023-24	Detailed explanation for change
Return on Networth (%)	15.02	16.18	-7.17	Depreciation impact due to capitalization of major capex projects and reduction in interest income.

Proposed/ Declared Dividend

45. As per Office Memorandum F.No.5/2/2016-Policy dated November 18, 2024 issued by the Department of Investment and Public Asset Management (DIPAM), every CPSE have to pay a minimum annual dividend of 30% of PAT or 4% of the networth, whichever is higher. Accordingly, your Directors are pleased to recommend a final dividend of RS.2.25 per share on the 26,30,80,780 fully paid equity shares of RS.5 each. Earlier, interim dividends of RS.4 and RS.3.50, aggregating to RS.7.50 per equity share had been paid to the shareholders during 2024-25. Thus, the total dividend for the year 2024-25 is RS.9.75 per equity share (195%), amounting to RS.256.50 Crores.

Segment-wise/ Product-wise Performance

46. The Company is engaged in two major activities viz., shipbuilding and repair of ships/ offshore rigs etc. Segment wise analysis has been made on the above basis and amounts allocated on a reasonable basis. The segment wise performance is given below:

(H Lakhs)

Particulars	As at Mar 31, 2025	As at Mar 31, 2024
Segment Assets
Shipbuilding	8,22,323.58	5,70,597.30
Ship Repair	3,48,784.30	3,03,008.95
Unallocated	1,33,441.35	3,14,420.86
Total	13,04,549.23	11,88,027.11
Segment Liabilities
Shipbuilding	4,36,865.61	4,14,480.77
Ship Repair	1,01,917.29	47,383.19
Unallocated	2,04,701.13	2,23,576.06
Total	7,43,484.03	6,85,440.02
Segment Revenue
Shipbuilding	2,66,326.95	2,63,891.24
Ship Repair	1,86,457.20	1,00,636.73
Unallocated	38,044.61	30,738.25
Total	4,90,828.76	3,95,266.22
Segment Result
Shipbuilding	43,421.67	59,920.68
Ship Repair	72,919.61	36,320.76
Unallocated	(2,956.74)	13,120.96
Total	1,13,384.54	1,09,362.40

47. The Company has two major business segments - "Shipbuilding" and "Ship Repair". Revenue under Shipbuilding includes RS.2,06,665.27 Lakhs (previous year:

RS.2,30,672.72 Lakhs) from two customer (previous year: one customer) having around 78% of the total Shipbuilding revenue, and for Ship Repair includes RS.1,53,005.55 Lakhs (previous year: RS.63,351.17 Lakhs) from two customers (previous year: two customers) having around 82% of the total Ship Repair revenue.

SWOT

Strengths

(i) Diversified product portfolio in ship building and repair;

(ii) A very good product mix compatibility comprising of defence ships, commercial ships and offshore ships;

(iii) Highly trained, motivated and knowledgeable manpower with an average of 15 years of experience at all levels of hierarchy resulting in extremely high-quality workmanship;

(iv) State-of-the-art facilities with well-planned and laid out shipyard enabling smooth work flow and efficient production;

(v) Pan India presence with seven units spread across the country thus providing more flexibility to meet the market demands;

(vi) A modern state-of-the-art design centre manned by highly trained, experienced and competent naval architects/ engineers, draftsmen etc.;

(vii) Highly evolved shipbuilding processes and practices permitting modular construction of ships; and

(viii) Availability of quality sub-contractors and good supply chain network.

Weaknesses

(i) Virtually non-existent indigenous ancillary industries and consequently non-availability of major equipment/ raw materials in India;

(ii) Non-availability of standard designed products as a part of current product line;

(iii) Non-availability of visible domestic demand which makes company dependant on International Market;

(iv) Higher finance and logistics costs resulting in higher input costs for production;

(v) Comparatively higher social and employee overheads being a public sector enterprise; and

(vi) Governmental system induced procedural delays.

Opportunities

(i) Projected increase in requirement of ships for the domestic commercial segment, owing to the Government of Indias policy towards demand aggregation and channelizing it for Make in India policies;

(ii) Projected demand in the defence sector;

(iii) Geopolitical situations and India being seen as a favourable destination for the Industry;

(iv) New generation vessels with green technology to meet new regulations for International and domestic markets;

(v) The lead position and preparedness of the Company to meet the demand from green tug market;

(vi) First mover advantage for introducing complete indigenous solutions for hydrogen fuel cell technology integration in vessel building in collaboration with Indian partners;

(vii) Strategic partnerships with global technology segments in maritime space;

(viii) Vessels to support offshore renewable and return of Oil & Gas industry;

(ix) Huge demand - supply gap for the repair of commercial and defence ships and virtually no competition in India;

(x) Aging global fleet, increased maritime trade and stringent environmental regulations necessitating regular maintenance and retrofitting.

Threats

(i) Distress pricing policies of competitors;

(ii) Adverse reputational impact on the Indian shipbuilding industry due to under performance by Indian yards;

(iii) Rising cost of labour and materials;

(iv) Non-flexible government regulations on procurement policies delaying the product delivery timelines and cost;

(v) Difficulty to tap skilled manpower due to

migration of experienced workforce to booming International market; and

(vi) Adverse geopolitical situations and trade war uncertainties.

CRUISE 2030 20

48. Over the past few years, CSL has made significant strides under its long-term transformation initiative, CRUISE 2030 (CSL Revenue Unlock through Integrated Strategic Excellence). This program laid a strong foundation for future growth through targeted expansion, modernization and capability building. Notable achievements include the establishment and operationalization of three new Ship Repair Units (SRUs) - CMSRU, CKSRU and CANSRU - and the operational strengthening of CSLs subsidiaries Hooghly-CSL and Udupi-CSL. Major investments were made in digital systems and infrastructure, including the implementation of SAP S/4HANA, integration of the Dassault 3DEXPERIENCE platform and deployment of state-of-the-art digital surveillance system. A dedicated Digital Centre of Excellence (DCoE) was also created to lead CSLs digital transformation across functions. Furthermore, CSL launched a third vertical - CSL Strategic & Advanced Solutions (C-SAS) - to tap into emerging technologies and deliver end-to-end maritime solutions.

49. Having largely achieved the objectives of the initial CRUISE 2030 roadmap, CSL initiated a strategic review to assess its current positioning and define the way forward in light of changing global maritime dynamics and new business opportunities. In October 2024, a Leadership Offsite was convened at Kumarakom, bringing together senior executives and strategy consultants, BCG. The two- day conclave led to a collective vision of scaling CSL to a RS.12,000 Crores company by FY31. The discussions focused on identifying actionable priorities and strategic enablers to support this growth.

50. Based on these deliberations, CSL has now launched CRUISE 2030 2.0 (CRUISE 2030 raised to 2.0), a refreshed and forward-looking roadmap that builds on the foundation laid over the past few years. Key initiatives under CRUISE 2030 2.0 include the establishment of ship repair clusters at Kochi and Vadinar, investment in marine electrification technologies to enhance design capabilities, development of a ship block-making facility to support scale and efficiency and the exploration of strategic partnerships with European shipyards to access advanced markets. To ensure effective implementation, a CRUISE 2030 20 Strategic Review Team has been constituted at the highest level to track progress monthly, provide strategic oversight, recommend course corrections and periodically report to the Board. These initiatives are aligned with national maritime goals under MIV 2030 and MAKV 2047 and reflect CSLs ambition to emerge as a globally competitive, innovation-led leader in the maritime sector.

CSL Strategic & Advanced Solutions (C-SAS)

51. Expanding beyond our core Shipbuilding and Ship Repair portfolios, CSL has established a dedicated division named CSL Strategic & Advanced Solutions (C-SAS) to venture into the arena of strategic and knowledge-driven future technologies in the maritime sector. C-SAS has been actively engaged in identifying and developing sustainable and future-oriented business models. Some of the key initiatives undertaken by the C-SAS Division during the financial year 2024-25 are as follows:

?€? System Integration of Indias first fully Indigenous

High Endurance Autonomous Underwater Vehicle (HEAUV): C-SAS team successfully completed

integration and trials of three carriers. The carrier-3 was successfully tested for the vehicle dynamics in both surface and submerged condition through multiple runs with perfect performance of sonars and communication systems. Additionally, C-SAS successfully delivered five sets of integration jigs and six sets of trussells. C-SAS also developed an innovative centre of gravity measurement device as part of the HEAUV project. The indigenous development of the launch and recovery system is currently in progress.

?€? C-SAS is presently undertaking the development of the Launch Control Station of the High Endurance Autonomous Underwater Vehicle (HEAUV), a fully integrated platform designed to manage the command, control and communication operations of HEAUV.

?€? Indias first Indigenously Developed Hydrogen Fuel Cell-based Vessel has completed 100 Hrs. of field operations at Varanasi as per IR Class recommendation. A temporary hydrogen dispensing system and AC charging system was also successfully commissioned by C-SAS team at Varanasi. Further, C-SAS team contributed to the development of the control system, automation system and marine classification of the Fuel Cell System, working closely with the Indian Register of Shipping (IRS). The vessel will be handed over to Inland Waterways Authority of India (IWAI) shortly and will commence its commercial operations at Varanasi.

?€? The C-SAS team has completed the development and delivery of 40 Submersible Temperature Measurement Systems to the Naval Physical and Oceanographic Laboratory (NPOL), DRDO Kochi in December 2023 and the system is presently undergoing various induction and platform level trials.

?€? Digital Twin Implementation for INS Vikrant (IAC):

C-SAS has undertaken the Digital Twin implementation on board INS Vikrant (IAC) for the Indian Navy. The Digital Twin software was procured from M/s. GE Vernova and necessary interfacing software with Gas Turbine controllers from M/s. L3 Harris. The data servers, hardware equipment and interfacing solutions, onboard and shore office implementation were provided by C-SAS team. The implementation of Digital Twin onboard INS Vikrant was completed in March 2025 and the system successfully went live in April 2025.

?€? C-SAS is currently working on the development of a fully indigenous Autonomous Surface Vessel (ASV) pilot project by collaborating with Indian development partner firms. In addition to the vessel building aspects, the ASV pilot project also involves indigenous co-development of maritime autonomy and its associated critical subsystems/ technologies by CSL and the identified Indian strategic partner firms including start-ups. In this context, five contracts were awarded and the vessel including related subsystems is advancing progressively. IR class contract is also underway for the development & certification of indigenous ASV and its key subsystems/ technologies.

ESG initiatives

52. Over the years, CSL has undertaken a range of proactive measures aimed at reducing its carbon footprints and conserving resources, reaffirming its commitment to environmental sustainability. Aligned with the global imperative to address climate change and mitigate greenhouse gas emissions, CSL has embarked on a comprehensive journey towards achieving net zero carbon emissions. The Company continues to drive improvements through initiatives focused on optimizing energy consumption, transitioning to renewable energy sources, and enhancing overall operational efficiency. Key initiatives undertaken in this regard are listed below:

(i) The current installed renewable energy capacity (solar) in CSL premises is 1972 kWp, which is proposed to be expanded to 3572 kWp soon.

(ii) Purchasing of renewable energy through Open Access (Green Day Ahead Market).

(iii) Recognizing the importance of clean transportation, 9 solar-powered electric two-wheeler charging docks supplying free of cost energy, have been installed at various locations across the Yard. This not only supports the shift towards electric mobility but also encourages employees to adopt greener travel options.

(iv) The replacement of the conventional rotor resistance speed control with a Variable Frequency Drive (VFD) for the hoist of the 50 T OBE LLTT crane at the Building Dock Port Side has resulted in enhanced overall efficiency and substantial energy savings. VFD also enables smooth start and stop of the motor, thus improving operational reliability.

(v) A significant stride has been made through the installation of a Static Frequency Converter (SFC), serving as a sustainable alternative to the traditional motor generator sets. This provides reliable power at 60 Hz frequency to docks and quays, reducing energy losses and improving efficiency.

(vi) The Yard is also benefiting from solar-powered street lighting installed at the new parking area outside CSL and METI, showcasing a commitment to harnessing solar energy for facility operations.

53. The Company is also exploring the possibility of converting its existing equipments from non-renewable energy sources to green fuels and has undertaken modification of several Material Handling Equipment (MHEs), leading to significantly cutting down greenhouse gas emissions.

54. In addition, CSL has implemented several smart energy management and automation measures aimed at improving energy efficiency and reducing operational costs. These initiatives leverage advanced technologies to monitor, control and optimize energy usage in real time. Key measures include:

(i) To monitor energy utilization, an IoT-based remote energy monitoring system has been implemented, enabling real-time tracking and analytics for energy consumption/ generation.

(ii) In alignment with intelligent energy use, sensor- based lighting controls have been installed in critical areas like the ship repair store and service tunnel. These systems automatically adjust lighting based on occupancy, ensuring energy is used only when necessary.

(iii) VRF (Variable Refrigerant Flow) air conditioning systems have been installed to optimize cooling energy consumption. Additionally, BLDC 5-star rated ceiling fans and man coolers have been introduced, improving energy efficiency while maintaining comfort standards.

(iv) Significant upgrades also include the replacement of high-pressure mercury vapor light fittings with energy-efficient LED lights at various strategic locations such as shops, welding skids, LLTT and gantry cranes.

(v) Power factor is closely monitored and maintained near unity to ensure optimal electrical performance and reduce wastage.

55. As part of CSLs long-term sustainability vision, the Company has set an ambitious target of transitioning to 100% clean energy for its operations, making CSL the first Indian shipyard powered entirely by green energy. Towards this CSL is planning a combination of wind and solar hybrid power plant in a suitable location in the state of Kerala and an expansion of the rooftop solar capacity to 4 MWp. Collectively, these initiatives are expected to generate substantial amount of green energy annually, exceeding CSLs current average energy consumption. A consultancy contract has been awarded to EMC, Kerala, to guide CSLs Renewable Energy Expansion Program, focusing on the development of a hybrid power plant integrating both wind and solar energy sources.

56. Beyond energy efficiency, CSL is actively pursuing a comprehensive range of Environmental, Social and Governance (ESG) initiatives aimed at driving sustainable growth and long-term value creation. These initiatives include:

(i) Gap Analysis, Materiality Assessment and ESG Roadmap.

(ii) Conversion of training institute centre to net zero/ green building.

(iii) Pilot conversion of diesel forklifts to CNG.

(iv) Purchase of battery-operated forklifts (2 nos., 3 T capacity).

(v) Implementation of micro-algae-based liquid tree systems at various locations.

(vi) Site dining facilities for subcontractor workmen (two locations).

(vii) Afforestation study for environmental protection with Kerala Forest Research Institute (KFRI).

57. Recognizing CSLs robust environmental management systems and proactive initiatives in sustainable practices, CSL earned the distinction of becoming the first company in the shipping sector to be certified with the "GreenCo Silver" ratings in October 2020 by the Confederation of

Indian Industry (CII). CSL was subsequently upgraded to "GreenCo Gold" ratings in December 2023.

Risks and Concerns

58. The risks for the Company arise from the inherent nature of the shipbuilding industry. An indispensable portion

of the Companys revenue over the years is from the commercial shipbuilding which is highly cyclical in nature. The commercial shipbuilding industry prospects are dependent on world trade and the cyclicity of oil, natural gas, shipping, transportation and other trade related industries. The Yard, being located at coastal areas due to the inherent nature of the industry, may be affected by the rise in sea level due to change in climate conditions and global warming.

59. Substantial portion of the Companys activities involve the fabrication and refurbishment of large steel structures and its erection which would entail the operation of cranes and other heavy machinery and other operating hazards. The operational risks faced by the Company also could result in fires and explosions etc. Though the losses caused on such eventualities are covered under a standard fire and special perils policy, CSL do not have insurance for business interruption. These risks could expose the Company to substantial liability for personal injury, wrongful death, product liability, property damage, pollution and other environmental damages.

60. Another high risk area for the Company is the availability and price fluctuations of major raw materials. The major raw materials include steel (the grade and quality of which, in each project, depends on the applicable classification rules) and other materials, equipment and other components such as pumps, propellers and engines. In fiscals 2023, 2024 and 2025 respectively, the Companys material consumption costs constituted 51.29%, 56.87% and 52.50% of its total costs, respectively. In particular, bought out components accounted for around 91.41% of our total raw material cost in these recent fiscals.

61. Shortages in the supply of raw materials may result in an increase in the price of these raw materials. For example, there are supply-side constraints in relation to steel in India which we expect will continue in future. The Indian steel industry has been unable to compete globally due to which the GOI has imposed significant duties on the import of steel from other countries such as China to protect the domestic steel industry. This has adverse impacts when CSL is unable to source steel economically. In addition, the cost of certain raw materials, such as steel, aluminium, copper etc., may fluctuate in line with any changes in their global supply and demand and thus impacting the material cost.

62. In the event that the price of the Companys raw materials increases, the Company will not be able to pass these price increases to its customers on its existing fixed contracts and its business, financial condition and results of operations can be adversely affected.

63. Changes in currency exchange rates may influence our results of operations. Globally, a substantial part of all worldwide ship sales transactions and purchase of offshore structures is generally conducted in USD and Euro. To mitigate this risk, the Company hedges the net forex exposure on the export receivables. However, in the case of import components in respect of shipbuilding/ ship repair contracts denominated in Rupee terms, CSL is exposed to exchange rate fluctuation risk unless the contract with the ship owner provides for an exchange variation reimbursement clause. Currently, some of the shipbuilding contracts do not contain such provision. Hence, adverse fluctuation in the currency rates will affect and influence our results of operations.

Product Diversification

64. CSL is undertaking product diversification efforts to align with emerging technologies and sustainability goals. As part of this, CSL designed and built Indias first fully indigenous Hydrogen Fuel Cell Catamaran Vessel in

collaboration with Indian partners with the assistance of the Ministry of Ports, Shipping and Waterways, supporting the National Green Hydrogen Mission. The Company is also constructing 23 Hybrid Electric Catamaran Hull Vessels for the Kochi Water Metro Project, of which 19 have been delivered, and 8 similar vessels for IWAI, with 2 delivered. CSL secured an international order for a Hybrid Service Operation Vessel for offshore wind farm support in Europe, where sustainable energy solutions are in high demand. In the autonomous space, CSL is developing the SWAYAT Autonomous Surface Vessel and a High Endurance Autonomous Underwater Vehicle to enhance capabilities in emerging maritime space. Further, through CSLs Start-up Engagement Framework USHUS, launched with an initial RS.50 crore corpus, the Company aims to support maritime start-ups. So far, RS.5.1 Crores has been committed to 11 start-ups working in areas like deeptech, AI, renewable energy and eco-materials. The framework provides financial, technical and mentoring support, with Indian Institute of Management Kozhikode LIVE (IIMK LIVE) and Indian Institute of Technology Madras (IITM) serving as Review and Recommending Agencies for selection, monitoring and stakeholder coordination.

Internal Control

65. The Company has in place adequate internal control systems. The internal audit function is carried out by an independent firm of Chartered Accountants who carry out an in-depth review of internal control systems in critical areas based on the audit programme approved by the Board level Audit Committee headed by an Independent Director.

Human Resource Development and Industrial Relations

66. The details regarding Human Resource Development and Industrial Relations are more specifically covered in the Directors Report.

Women Empowerment

67. CSL has constituted Internal Complaints Committees, chaired by senior women executives, in accordance with the guidelines and norms prescribed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act). The Certified Standing Orders applicable to workmen include sexual harassment as an act constituting misconduct. The Internal Complaints Committees are empowered to enquire into such complaints as per the procedure laid down in the Certified Standing Orders and Industrial Employment (Standing Orders) Acts and Rules.

68. CSL has observed Sexual Harassment Prevention Week 2024 from December 09 to 13, 2024 by reiterating our commitment to providing a safe, respectful and inclusive work environment for all the women employees at CSL. The observance week encompass conducting sensitization workshops on POSH Act by external faculty, conducting competitions like essay writing, quiz and poster design for all CSL employees.

69. Yet another milestone in CSLs women empowerment initiative is introduction of Child Care Leave (CCL). Women employees with dependant disabled children (40% or more disability) are eligible for CCL up to 730 days without age restrictions. Single parents (male or female) with minor dependent children (up to 18 years old) are also eligible for CCL for purposes such as exams or sickness.

70. CSL has conducted the Early Cancer Detection Screening (ECDS) for female spouses of employees as a part of the periodic health check-up programme. Further, in order to educate CSL women community about safe and defensive driving, how their vehicle works, basic vehicle maintenance, dealing mechanical issues in emergencies etc., a hands-on

workshop called KNOW YOUR VEHICLE was conducted for all permanent women employees in different batches.

71. CSL celebrated International Womens Day on March 12, 2025 in a befitting manner. A full-day programme was organized, including inaugural session by the chief guest, followed by an awareness session on Parenting. The talents of CSL women workforce were also showcased as part of celebration of the International Womens Day.

72. Further, the Company ensures the participation of women in various forum including Joint Council, Shop Council, Central Safety Council, Shop Safety Council, Employees Contributory Provident Fund Trust, Cochin Shipyard Recreation Club, Cochin Shipyard Consumer Society, Cochin Shipyard Officers Welfare Centre etc.

Micro, Small and Medium Enterprises (MSME) as per the Public Procurement Policy 2012

73. CSL is making sustained efforts to enhance the procurement of goods and services from MSEs. For the financial year 2024-25, the Company has achieved a total indigenous procurement of 59.6% from MSEs, 0.61% from SC/ ST and 4.72% from women entrepreneurs against the MoU targets of 25%, 4% and 3% respectively. CSL could successfully contribute business opportunities to more than 25 SC/ ST entrepreneurs and 100 women entrepreneurs during the year. Efforts are being continued to enhance the participation of SC/ ST and women MSEs, to meet the targets of 4% and 3% respectively.

74. During the year 2024-25, CSL has conducted various Vendor Development Programmes (VDPs) for MSEs including SC/ ST and women in association with MSME DFO, Thrissur, National Small Industries (NSIC), Kochi and agencies like Aerospace Industry Development Association of Tamil Nadu (AIDAT), Tamil Nadu Industrial Development Corporation (TIDCO), Facilitating MSMEs of Tamil Nadu (FaMeTN), India Boat & Marine Show (IBMS), Kochi etc. In addition to the above, Exposure visits to CSL for various MSMEs were conducted during the period. The details of such programmes conducted and participated during the FY 2024-25 are given below:

(i) VDP and B2B meetings for MSMEs of Kerala,

conducted at Thrissur on December 04, 2024, in association with MSME DFO, Thrissur. More than 350 MSMEs including SC/ ST and women entrepreneurs attended the VDP session, visited CSL exhibition stall and had interactions with CSL officials on business possibilities in shipbuilding, ship repair and other general requirements of CSL.

(ii) VDP and B2B meetings were held on January 18, 2025, at Hotel Radisson Blue, Coimbatore in association with AIDAT and TIDCO, Chennai. This event could facilitate interaction with potential MSME vendors well established in the Aerospace/ Defence sector who are looking for opportunities in the Marine products/ services as well. There was a participation of around 90 MSMEs including SC/ ST and women entrepreneurs.

(iii) CSL conducted a session on Vendor Development and Awareness Programme in the exclusive VDP for Marine Products and Services organized by FaMeTN, Chennai for the MSMEs of Tamil Nadu, targeting the opportunities with Indian shipbuilders & ship repairers. The programme held at Coimbatore on January 31, 2025 had a participation of around 85 MSMEs including SC/ ST and women category. All Govt./ Defence shipyards as well as few private shipyards in India had participated in the VDP and this was an opportunity to understand the good practices followed by the peer industries as well.

(iv) CSL organized exposure visits to the Yard for industrial associations like Tirupur Small Industries Cluster on May 03, 2024 and Tiruchirappalli Engineering & Technology Cluster (TREAT) on May 21, 2024, to familiarize the nature of material/ services required for CSLs ship building and repair activities. Through the visits of Tirupur and Trichy clusters, CSL could interact with about 15-20 MSEs. Upon subsequent discussions and tender process, CSL outsourcing cell could award work order to TREAT, Trichy for A-Frame fabrication as well.

(v) Another exposure visit/ familiarization programme was conducted for the Muvattupuzha Taluk Scheduled Caste Labour Contract Co-operative Society on October 07, 2024 to enable the members of the Society to understand practical aspects of labour requirements for shipbuilding/ ship repair. Subsequently, a skill development training session was arranged for their members in the welding and grinding work, through the Shipbuilding division.

(vi) Consequent to the VDPs and exposure visits, many suppliers from Tamil Nadu as well as within Kerala

have started participating in CSL GeM tenders and about 49 MSEs within Kerala and 18 MSEs from Tamil Nadu have enlisted with CSL as permanent suppliers.

75. Other initiatives include, periodic updation of CSL website with MSME related information beneficial for the vendors, regular uploading of procurement data, payment data and other relevant information as per directives of MoMSME in the "MSME SAMBANDH" and "MSME SAMADHAAN" portals etc. CSL is promoting payment through TReDS platform and around 300 MSME vendors have already on-boarded in the TReDS portal and a few are utilizing the facility.

Other Information

76. The details regarding the Companys CSR activities, environment protection and conservation initiatives, technology absorption and upgradation efforts, forays into renewable energy, foreign exchange conservation etc., are provided in the Directors Report and the Annexure thereon.

Cautionary statement

77. Statement in this Management Discussion and Analysis Report describing the objectives, expectations, assumptions or predictions of the Company may be forward looking statements within the meaning of applicable rules and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the operations of the Company include economic conditions affecting demand/ supply, price conditions in the domestic and international markets, Government policies and regulations, statutes and other incidental factors.

	For and on behalf of the Board of Directors
	Madhu Sankunny Nair
Kochi	Chairman & Managing Director
May 15, 2025	DIN: 07376798