Garden Reach Shipbuilders & Engineers Ltd Directors Report

Directors Report

Dear Shareholders,

Your Board of Directors is delighted to present the Annual Report on the performance of your Company and its Audited Financial Statements for the Financial Year ended 31^st March 2025, along with the Reports of the Statutory Auditors and the Comptroller & Auditor General of India (C&AG) thereon.

FINANCIAL PERFORMANCE

The financial performance of your Company has been exceptional during the financial year 2024-25. During the year, the Company has registered an improvement in Revenue from Operation by 41%, by registering Rs. 5,075.69 crore against Rs. 3,592.64 crore in the previous year. Furthermore, EBIDTA and PAT experienced robust growth, increasing by 42% and 48%, respectively, underscoring our strong operational performance and profitability.

The financial highlights for the financial year 2024-25 and 2023-24 are summarized below:

		( Rs. in crore)
Particulars	2024-25	2023-24
Value of Production	5,070.98	3,588.46
Revenue from Operation	5,075.69	3,592.64
Profit Before Depreciation, Interest and Tax	756.10	533.74
Finance Cost	10.32	11.49
Depreciation	42.49	41.33
Profit Before Tax	703.29	480.92
Provision for Tax	175.89	123.65
Profit After Tax	527.40	357.27
Other Comprehensive Income (Net of Tax)	(2.56)	1.10
Total Comprehensive Income	524.84	358.37

The financial position of your Company as on 31 March 2025 and 31 March 2024 is appended below:

		(Rs. in crore)
Particular	As on 31 March 25	As on 31 March 24
Capital Employed	2,079.26	1,673.44
Gross Block	816.18	754.21
Net Block	515.16	492.57
Working Capital	1,374.94	989.43
Net Worth	2,079.26	1,673.44
Value Added	1,479.75	1,335.21
Value of Production	5,070.98	3,588.46
Profit Before Tax	703.29	480.92

 

Particular	As on 31 March 25	As on 31 March 24
Ratios:
Profit before interest and tax: Capital Employed (%)	34.32	29.43
Profit after tax: Net Worth (%)	25.36	21.35
Gross Profit: Capital Employed (%)	36.36	31.89
Profit Before Tax: Value of Production (%)	13.87	13.40
Value of Production: Capital Employed (%)	243.88	214.44
Current Ratio (In times)	1.17	1.12
Return on Equity (%)	28.11	23.14
Trade Receivables Turnover Ratio (In times)	22.38	29.32
Trade Payable Turnover Ratio (In times)	3.57	3.73

Value of Production

Your company has achieved a record Value of Production (VoP) of Rs.5,070.98 crore as against Rs.3,588.46 crore during the previous year. The comparative VoP for the three Divisions of the Company are as follows:

					(Rs. in crore)
Year	Ship Division	Engineering Division	Engine Division	Misc.	Total
2024-25	4,870.85	149.79	50.34	-	5,070.98
2023-24	3,373.22	167.17	47.90	0.17	3,588.46

Net Worth

During the year under review, your Company reported a Net worth of Rs.2,079.26 crore as on 31 March 2025 against Rs.1,673.44 crore as reported on 31 March 2024.

Value Addition

The Value added during the financial year under review was Rs.1,479.75 crore as against Rs.1,335.21 crore during the previous year. The Value added per employee rose to Rs.87.56 lakh compared to Rs.80.97 lakh in the previous year.

Appropriations

Considering the financial performance of your Company in the year 2024-25, the Board of Directors are pleased to recommend the following appropriations from the disposable surplus:

	( Rs. in crore)
Profit After Tax	527.40
Other Comprehensive income for the year, Net of Tax	(2.56)
Total Comprehensive income for the period	524.84
Less:
Final Dividend of FY 2023-24 on the Paid-up Capital	16.50
Interim Dividend of FY 2024-25	102.52
Balance retained in Statement of Profit & Loss	405.82

Contribution to the Exchequer

During the financial year 2024-25, your Company contributed Rs.85.70 crore to the National Exchequer by way of Income Tax and GST.

Dividend Distribution Policy

Pursuant to Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"), the Board of Directors of the

Company have formulated a Dividend Distribution Policy keeping in view the provisions of SEBI Listing Regulations, the Companies Act, 2013 and Guidelines issued by the Department of Public Enterprises (DPE) and the Department of Investment and Public Asset Management (DIPAM). The Policy is available on the Companys website at https:// grse.in/wp-content/uploads/2022/04/GRSE-Dividend-Distribution- Policy.pdf.

Dividend

Pursuant to the approval of the Board of Directors on 03 Feb 2025, your Company has paid an interim dividend of Rs.8.95/- per equity share of face value of Rs.10/- each to Shareholders who were on the Register of Members as on 07 Feb 2025, being the record date fixed for this purpose. Further, the Board, at its meeting held on 13 May 2025 has recommended final dividend of Rs.4.90/- per equity share of face value of Rs.10/- each for the financial year 2024-25. Thus, the total dividend for the financial year 2024-25, if approved by the Shareholders, would be Rs.13.85/- per equity share.

MOU Rating

Your Company has been rated "Excellent" with a score of 96.5 out of 100 as per MoU Evaluation for FY 2023-24 by the Department of Public Enterprises. Further, on the basis of actual achievements vis-avis parameters laid down in the MoU signed with the Government of India, your Company is expected to be rated "Excellent" again for its performance during the FY 2024-25.

Directors Report

PERFORMANCE OF THE COMPANY DURING THE YEAR

A. SHIPBUILDING

The Company has achieved a total shipbuilding income of Rs.4,757.03 crore during 2024-25 as against Rs.3,280.33 crore in 2023-24. Notably, the Company delivered a Survey Vessel (Large) to Indian Navy on 08 Oct 2024, which was commissioned on 18 Dec 2024 at Vizag. Further, the details of vessels under construction in your Company as on 31 Mar 2025 are as follows:

Project/Vessel Type	No. of Vessels
Project P-17A for Indian Navy	03
Survey Vessel (Large) for Indian Navy	02
ASW-SWC for Indian Navy	08
NG OPV for Indian Navy	04
Hybrid Ferry Vessel (100PAX)	07
Hybrid Ferry Vessel (200PAX)	06
Acoustic Research Vessel	01
Multi-Purpose Vessel CORAL 7500	08
Trailing Suction Hopper Dredger	01
Total Platforms	40

During the year, your Company has signed contracts with M/s Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG Germany for construction and delivery of 08 Multi-Purpose Vessel CORAL 7500. The total contract value is 106.8 million USD. These vessels will advance the idea of "Make in India, Make for World, and marking a key milestone in its global outreach and export capabilities.

The Shipyard also delivered 03 Patrol cum Surveillance Boat to Bangladesh on 03 Jun 2024 and the Autonomous Unmanned Surface Vessel (USV), Jal Doot to Naval Science & Technological Laboratories (NSTL) on 28 Oct 2024.

The Company has delivered its first ASW SWC Ship on 08 May 2025.

The Company has signed the Contract for Construction of two Coastal Research Vessels (CRVs) for the Geological Survey of India (GSI) on 11 Jun 2025.

The Shipyard also completed major milestones on various projects during the financial year as follows:

Commissioning

Sl. No.			Ship	Yard		Date
(a)	02 Survey Nirdeshak		Vessel (Large), INS	3026		18 Dec 2024
Delivery
Sl. No.		Ship		Yard	Date
(a)		03 Patrol Cum Surveillance Boat for Bangladesh		-	03 Jun 2024
(b)		2nd Survey Vessel (Large)		3026	08 Oct 2024
(c)		NG Electric Ferry, DHEU		2120	09 Jan 2025
(d)		USV Jaldoot for NSTL		-	28 Oct 2024

Launching

Sl. No.

Ship

Yard

: Date

Keel Laying

Sl. No.	Ship	Yard	Date
(a)	8th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3034	10 May 2024
(b)	1st Next Generation Offshore Patrol Vessel (NGOPV)	3037	05 Nov 2024
(c)	2nd Next Generation Offshore Patrol Vessel (NGOPV)	3038	05 Nov 2024

Start Production

Sl. No.	Ship	Yard	Date
(a)	Ocean Research Vessel (ORV)	-	29 Nov 2024

Contract Signed

Sl. No.	Ship	Yard	Date
(a)	01 No. Acoustic Research Ship (ARS) for Naval Physical and Oceanographic Laboratory (NPOL), DRDO, Kochi, Kerala.	3058	21 Oct 2024
(b)	01 No. Ocean Research Vessel (ORV) for National Centre for Polar & Ocean Research (NCPOR), Ministry of Earth & Science, GoI.	3041	16 Jul 2024
(c)	07 Nos. Hybrid Ferry (100 PAX) for Govt. of West Bengal	2124 to 2130	03 Oct 2024
(d)	06 Nos. Hybrid Ferry (200 PAX) for Govt. of West Bengal.	2131 to 2136
(e)	04 MPV Export Order with Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG Germany	3050 to 3053	22 Jun 24
(f)	02 MPV Export Order with Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG Germany	3054 & 3055	04 Oct 24 and 04 Dec 24
(g)	02 MPV Export Order with Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG Germany	3056 & 3057	24 Mar 25
(h)	01 No. 58.70 M long Trailing Suction Hopper Dredger - TSHD (Hopper Cap. 1000 m3) with Spare Parts for BIWTA, Bangladesh of Contract Value 16.575 million USD	2121	02 Jun 2024

B. SHIP REPAIR

The Ship Repair Division having commenced independent operation from FY 2021-22 with a yearly revenue of approx. Rs.19 crore has witnessed multi-fold increase in the business revenue over past two years. During FY 2024-25, GRSE has aggressively pursued tenders for high value refits of Indian Navy having secured an order book of Rs.172.40 crore (approx.). This has been followed by couple of more projects from National Coast Guard Seychelles, Indian Coast Guard and dry docking of M/s TRSL vessels and other commercial ships.

The revenue from Ship Repair activities surged to Rs.113.82 crore in the year 2024-25 from Rs.92.89 crore in the year 2023-24, reflecting substantial growth and operational efficiency.

C. ENGINEERING DIVISION

The Value of Production (VoP) achieved by the Engineering Division during the financial year 2024-25 amounted to Rs.149.79 crore in comparison to Rs. 167.17 crore in financial year 2023-24.

Portable Steel Bridge Unit

During the financial year 2024-25, the Bailey Bridge unit has achieved a Value of Production (VoP) totalling Rs.145.46 crore. This included the production of 102 bridges totalling 7,715 MT, compared to 90 bridges totalling 6,750 MT in the preceding year.

The Company has also exported 14 sets of Bridges to Nepal and Bhutan amounting to Rs.27.93 crore (10 sets of Bridges under Ministry of External Affairs (MEA) to Kathmandu, Nepal, 02 Sets of Bridges to Ministry of Infrastructures and Transport, Bhutan and 02 Sets of Bridges to Private Agencies in Nepal) during 2024-25.

During the year, your Company achieved a major milestone through delivery of 13 sets of various spans of Bailey Bridges to PWD Uttarakhand in a short span of only one month to restore immediate and critical geo-connectivity in the flood affected regions of Himachal Pradesh.

Your Company has delivered successfully 13 sets of Double Lane MSBs to BRO under the MOU with DGBR (BRO). The Company has also been successful in delivering 03 sets of Bailey Suspension bridges and 01 set of 230 feet Single Lane Modular Bridges to Project Swastik (BRO) under the MOU with BGBR (BRO). All these strategic bridges helped to restore geo-connectivity in the flash flood affected areas in North Sikkim.

Under R&D initiatives, your Company has completed the design of 60 Meters Steel Through Type Permanent Bridge with collaboration with BERD, Portugal and Design of 400 feet Foot Suspension Bridge. Trial Assembly of both bridges are under progress.

Deck Machinery Unit

The Deck Machinery Unit of GRSE is an ISO 9001-2015 qualified marine deck equipment manufacturing unit. The Deck Machinery Unit has been designing and manufacturing a range of equipment for applications onboard ships over the last three decades. The equipment conforms to the stringent marine operational requirements for certification by Classification Societies (IRS/ABS/RINA) and Defence Quality Assurance. This equipment is performing well on Seagoing Platforms and GRSE also provides pan India support to the Indian Navy and Coast Guard by way of supply of spares and repair assistance through partnerships with reputed engineering firms at all ports in the country. A few products from the existing inventory like Telescopic Hangars, Hangar Doors, Rail based as well as Rail Less Helicopter Traversing Systems, Dock Capstans & Winches are being gradually

phased out based on GRSEs assessment of market trends and future requirements. In lieu, newer equipment and projects have been added to the product portfolio. Some of these include: -

(a) 30mm Naval Surface Gun for Indian Navy/ Coast Guard.

(b) Power Distribution Panels (PDPs)

(c) Marine Valves (Hull & Line)

(d) Ground Support Equipment for handling MH60R, SK42C and ALH helicopters

(e) Green Shipping Projects like Methanol Fuel Conversion Retrofits

The Unit has undertaken Factory Acceptance Trials (FATs) for over 27 deck machinery equipment, in addition to Harbour Acceptance Test (HATs)/ Sea Acceptance Test (SATs) across various platforms and locations including Chennai, Vizag, Mumbai, Karwar, Goa and Kolkata.

During the year, the Unit has supplied over thirty-one (31) Nos. of different types of major deck machinery equipment to multiple new construction yards and operational ships of the Indian Navy, in addition to meeting ABER and B&D requirements. The division also achieved several significant milestones and first-time achievements.

Major Evolutions

RLHTS and GSE Integration: The Rail Less Helicopter Traversing System (RLHTS) has been successfully indigenised and proven on all four twin hangar platforms (P15B vessels). SATs with Sealing (SK42C) helicopters, along with Ground Support Equipment (GSE) modified to suit all SK42C version helicopters has been successfully conducted on two P15B platforms i.e. INS Imphal & INS Visakhapatnam. This pioneering achievement is a first of its kind being deployed on a Naval platform across the globe with indigenous GSE fabricated suitably for SK42C and also ALH MK-I helicopters. Additionally, prior to SATs, successful trials of GSE for SK42C were conducted at INS Shikra. The success has been noteworthy, as the SATs were completed without any observations and the earned accolades from the agencies of Indian Navy, having been proved on Survey Vessel Large (SVL) ships apart from P15B.

GSE for MH60R Helicopters: Based on emergent requirement from the Indian Navy to supply GSEs for handling new induction MH60R helicopters, design and development of the Ground Support Equipment has been undertaken. Initial fitment trials on the helicopters at INS Garuda have been satisfactory. Following successful preliminary trials, manufacturing of the GSE has commenced and final trials planned shortly.

Telescopic Helicopter Hanger: A notable milestone has been complete in house design, development, manufacturing and validation of the Telescopic Helicopter Hangar with integrated hangar doors originally planned for import. The system has been placed in-house by way of Factory Acceptance Trials (FATs) followed by successful trials at harbour and sea on three SVL class ships to the satisfaction of Indian Navy. Setting to Work (STW) is in currently in progress on the fourth SVL.

Accommodation Ladder: Accommodation Ladder plays a significant role in readiness of any platform. The development of an in-house accommodation ladder with closure was undertaken for P17A platforms under construction at GRSE. Trials of a fully automated ladder have been conducted successfully at sea on the first P17A vessel at GRSE. The equipment for the remaining two vessels has been made ready for FATs to be followed by Harbour and Sea Trials.

Mooring/ Anchor Capstans: GRSE has been in the forefront for design and development of various capstans & windlasses. Specialised capstans for LST (L)s and all other projects at MDL, GRSE, HSL, GSL have been developed. The DKMC Unit of GRSE takes pride in design, development, manufacturing and providing product support of the largest shipboard mooring capstan of 15T capacity. A contract for three years has been put in place with Indian Navy for providing unhindered support to this equipment. Based on the contract, unhindered support to the Aircraft Career (INS Vikrant) is being rendered to all ports.

Deck Cranes: The development of a 3-ton deck crane with telescopic capabilities, boasting a maximum reach of 13 meters, for the Survey Vessel Large (SVL) project has been completed successfully. This crane has been validated on all four SVL vessels and is being used extensively.

Boat Davits: GRSE has contributed significantly to the development of state-of-the-art 3T Boat Davits for ASW-SWC, SVL and NGOPV projects. These Boat Davits have been proved on two of eight ASWSWCs, all four SVLs and FATs for all four ships of the NGOPV project have also been completed.

Marine Valves: In keeping pace with the requirement of construction of multiple new generation warships and other commercial vessels for Indian and Foreign requirements, a project for in-house development of hull & lines valves was started with plans for future production of Type Tested valves. As a pilot project, ten types of valves were selected for design and development. Design and manufacturing of these valves has been undertaken successfully and presently the valves are under Type Testing with IACS involvement through a NABL accredited lab. Major type tests of five valves have been completed successfully, and plans for future production are being worked out.

D. ENGINE DIVISION

The Diesel Engine Plant (DEP) of your Company at Ranchi has successfully delivered the balance eight nos. 1MW DAs of P17A and by these deliveries, all 28 Nos. DAs have been delivered to MDL and GRSE Yard against this project.

DEP Ranchi has also delivered one (01) MTU 4000 series engines to the Indian Coast Guard following the completion of W6 routines and successful Factory Acceptance Trials.

The Engine division achieved a notable Value of Production of Rs.50.33 crore during the financial year 2024-25 in comparison to Rs.47.90 crore last year.

Bailey Bridge Components are also being manufactured at DEP unit at Ranchi, where Bailey Bridge Division of DEP Unit achieved a VoP of approx. Rs.27.29 crore and production of 2,142 MT during the financial year 2024-25.

DEP Unit has enhanced its capacity for testing the MTU engines by completing the upgradation of its existing test bed No.1 for testing MTU engines with capital investment of approx. Rs.437 lakh in this financial year 2024-25.

E. NSG PROJECT

The contract for manufacturing and supply of 30 mm Naval Surface Guns worth Rs.248.50 crore for the Ministry of Defence (MoD)/Indian Navy was signed on 24 May 23 as a step towards indigenisation of weapon system for Indian Armed Forces

The Gun is being indigenised under Buy (India) Category with 60% Indigenous Content (IC). With the successful indigenisation of the NSG-30 with EOD, GRSE has established a new business vertical. The NSG-30 is a sophisticated, automated and remotely controlled weapon System. GRSE will also participate in the Make-II project for another 97 NSG-30 with EOD spanning over the next 05 years. Talks with the Indian Coast Guard are also in progress for their requirements. GRSE has already entered into an MoU with its collaborative partners for 15 years.

EXPORT INITIATIVES

Your Company is the first Indian shipyard to export a warship, an Offshore Patrol Vessel to Mauritius in 2014. GRSE also exported a Fast Patrol Vessel SCG PS Zoroaster to the Govt. of Seychelles and completed its Guarantee Refit & Dry Docking (GRDD) on 31 Mar 22. Your Company also exported 01 No. Ocean Going Vessel (OGV) to Republic of Guyana at a value of 12.73 Million USD. Recently, 06 Patrolling and Surveillance Boats have been delivered to Bangladesh at a value of 1.82 million USD.

Your Company has taken initiatives to export Naval ships to the friendly foreign countries and has identified SAARC, ASEAN, African & Latin American countries. Countries such as Bangladesh, Guyana, Philippines, Seychelles, Malaysia, Mauritius, UAE, Vietnam, etc. are in focus. Further, GRSE regularly supplies Portable Steel Bailey Bridges and its components to the neighboring countries such as Nepal, Bhutan, and Bangladesh. Efforts are on to further enhance the export of Bailey Bridges and their components to other friendly foreign countries as well.

During FY 2024-25, your Company has generated revenue (VoP) of Rs.73.63 crore from export orders which includes Rs.19.28 crore from Shipbuilding, Rs.26.42 crore from Ship Repair and Rs.27.93 crore from the Bailey Bridges.

Your Company is presently executing the following Export Orders:

(a) 01 No. 58.70 M long Trailing Suction Hopper Dredger - TSHD (Hopper Cap. 1000 m3) with Spare Parts for BIWTA, Bangladesh of Contract Value 16.575 million USD.

(b) 08 Nos. 7500 DWT Multi-Purpose Vessel - MPV for M/s Carsten Rehder Schiffsmakler and Reederei GmBH & Co. KG, Germany worth of Contract Value 106.8 million USD.

(c) 16 Nos. Pre-Fabricated Portable Steel Bridge worth Rs.11.44 Crore from Bhutan.

ORDER BOOK POSITION

The total order book position of your Company for the three (3) divisions as on 31 Mar 2025 is as follows:

	(Rs. in crore)
Sl. No. DIVISION/DEPTS	Closing order Value as on 31 Mar 2025
A Ship Division
Ship (including B&D Spares)	22,259.55
Ship Repair & AMCs	282.12
Total Ship Division	22,541.67
B Engineering Division
Bailey Bridge	90.18
Deck Machinery & Pump	21.59
Total Engineering Division	111.77
C Engine Division	27.31
Total (A+B+C)	22,680.75

NEW INITIATIVES

To foster long-term business growth and embrace new technologies, your company has taken up following major initiatives through signing of Memorandum of Understanding (MoUs) during FY 2024-25:

(a) M/s Larsen & Toubro Ltd. to optimally develop and utilize indigenous technology that can build commercial vessels for world-wide customers.

(b) M/s SHM Shipcare Pvt. Ltd., Mumbai to undertake repair/ refits and allied activities of all types of ships & vessels including Naval warships, Coast Guard ships and those of merchant marine both Government as well as privately owned at its Units at Kolkata.

(c) M/s Merlinhawk Aerospace Private Limited, Bangalore for Collaboration in the development & Manufacturing of composite Doors and Hatches for use in naval ships

(d) M/s Kerala State Electronics Development Corporation Limited (KELTRON), Thiruvananthapuram, Kerala for collaborative working arrangement for manufacturing and deployment of core and futuristic technologies in various fields to achieve selfreliance in certain areas of Under Water Surveillance.

(e) NAVAL GROUP S.A., France for co-operation to supply versatile Offshore Patrol Vessels (OPVs) to a Friendly Foreign Country (Bangladesh).

(f) M/s. Mercury Ship Repairs Pvt. Ltd. Karwar, Karnataka to work together for the purpose of undertaking jobs of ships refits, and to determine their respective work share in repair jobs.

(g) M/s Conceptia Software Technologies Pvt. Ltd., Bangalore for Developing Design, Drawings & support for Deck Machinery Product(s) under GRSE Brand Name.

(h) M/s IOE Offshore Equipment (India) Pvt. Ltd., Pudukkottai, Tamil Nadu For Developing Electro-Hydraulic Drive Deck Machinery Product(s).

(i) M/s National Highways and Infrastructure Development Corporation (NHIDCL) for supply of Double Lane Modular Bridges and Bailey Bridges for National Highway Projects Pan-India.

RESEARCH & DEVELOPMENT

GRSE executes all R&D projects through carefully chosen industry partners and Institutions after detailed technical discussions covering various aspects of the product including compliances with industry standards. Reputed Academia like IITs and IISC have been GRSEs partners for some of the key R&D projects implemented to date. GRSE also has strategic MoUs with reputed Academia and (Start-ups/MSME) for various developmental activities. GRSEs initiatives to indigenously develop latest technology in collaboration with industry partner have been summarised in the succeeding paragraphs.

GREEN ENERGY TECHNOLOGIES

The use of green/ renewable energy is a major focus area globally. Although, from a purely military perspective the need for adopting green technology in Naval platforms may not be immediately apparent, there are compelling reasons for the same. Besides reduced emissions and contribution to the environment, energy security of the nation, enhanced endurance and reduction in operational costs are key drivers for the Navy to adopt green technologies.

Next Generation Electric Ferry: As a critical first step towards zero emission water transportation and increased use of waterways as envisioned in the Maritime India Vision-2030, your Company has designed and built a largest zero-emission 150 Pax fully electric ferry, first of a kind in the country with potential to replace the conventional diesel engine driven ferries. This indigenously developed de-novo design was further optimised and validated at IIT Kharagpur. This electric ferry is a revolutionary measure in reduction of Carbon Emission in the water transportation sector. This new generation ferry was built and outfitted in compliance with applicable provisions and regulations of the Classification Society, Indian Register of Shipping (IRS). The order for one such ferry has been received from the Government of West Bengal and GRSE has successfully delivered the vessel to the Govt. of West Bengal in Jan 2025. The Company has received an order for design & construction 13 such vessels from Government of West Bengal.

Hydrogen Fuel Cell Ferry: GRSE is working with the industry to modify the design of the zero-emission electric ferry by integrating the same with indigenously developed Hydrogen Fuel Cells. The Hydrogen Fuel-based Ferry project has reached a significant milestone with the completion of its concept design. The hydrogen fuel cell-powered ferry has received Approval in Principle (AIP) from the Indian Register of Shipping (IRS) for a 100-passenger vessel. The ferry will utilize electric propulsion powered by hydrogen fuel cells, offering an endurance of more than 30 kilometres on a single fuelling. The Indian Navy and the Directorate of Marine Engineering (DME) have issued a Preliminary Staff Requirements (PSR) for the development of a 50-passenger ferry with an extended endurance of 100 nautical miles. GRSE has submitted its comments on the PSR and the RFI response in December 2024 and is currently awaiting feedback from the Indian Navy regarding the next steps in the project development. This initiative aligns with Indias push toward sustainable maritime transport, leveraging hydrogen fuel cell technology to minimize environmental impact and enhance operational capabilities.

Green Tug Transition Plan: GRSE is also working on design of hybrid tugs to facilitate ports to meet the Government of Indias Green Tug Transition Plan (GTTP). The GTTP is a strategic initiative aimed at transforming Indias port operations with sustainable and energy- efficient tugboats. The plan mandates the operation of fully electric tugs, with initial deployments set to commence in all major ports by 2025. The objective is to achieve at least 50% conversion of all tugs into green tugs by 2030. A technical solution has been developed, incorporating indigenous electric motors, energy storage systems (ESS), and advanced control systems to ensure optimal performance and efficiency. The adoption of green tugs is expected to significantly reduce carbon emissions, enhance port operational sustainability, and establish India as a leader in eco-friendly maritime solutions. With the timeline and strategy in place, the implementation of GTTP is set to revolutionize the countrys tugboat operations, making them more environmentally friendly and technologically advanced.

AUTONOMOUS VESSELS

Autonomous systems are set to revolutionize the maritime sector. With extensive expertise in designing and building complex platforms, GRSE is actively collaborating with start-ups and innovators to develop cutting-edge autonomous technologies. Focused on a triad of fully autonomous vehicles, these initiatives are in an advanced stage of development. With continued support from the Indian Navy through joint technical deliberations and funding, GRSE is well-positioned to deliver operationally ready autonomous solutions aligned with naval requirements.

Unmanned Surface Vessel (USV):

(a) Jaldoot USV: GRSE has delivered a cutting-edge Unmanned Surface Vessel (USV) to Naval Science and Technological Laboratory (NSTL), DRDO on 28 Oct 2024. The above achievement is testament to the efforts of GRSE in nurturing inhouse expertise as well as indigenous start-ups. This compact vessel, with dimensions of 1.5m length, 0.8m breadth, and 0.8m height, shall be designed to play a pivotal role in enhancing communication between underwater vessels and a mother ship/ shore station.

(b) Swadheen USV: GRSE in collaboration with a start-up has developed Unmanned Surface Vessel (USV) Swadheen, is a 5 m long USV designed specifically to meet the unique needs of the Indian Navy, while also acting as a robust testing ground for future larger and more sophisticated USVs. Swadheen is Indias first operational, electric-powered, fully autonomous vessel with capabilities to operate safely in open ocean conditions.

(c) ASV MCM Autonomous Surface Vessel for Mine Counter Measures: The ASV MCM Project is identified for Enhancing Naval Defence Capabilities. In the dynamic realm of naval defence, where technological prowess is paramount, the Autonomous Surface Vessel for Mine Counter Measure (ASV MCM) project emerges as a flagship initiative undertaken by the Indian Navy. This ambitious endeavour represents a paradigm shift in the approach to mine countermeasure capabilities, leveraging state-of-the-art autonomous technologies. The ASV MCM project, approved under the Make - II category, signifies not just a technological leap but a comprehensive strategy to strengthen the nations defence capabilities. The journey from prototype development to subsequent procurement under the Buy (Indian-IDDM) category encapsulates a meticulous process aimed at ensuring indigenous excellence in mine countermeasure operations. This venture embodies a synergy between innovation and national security, reflecting the Indian Navys dedication to self-reliance and cutting-edge defence solutions.

Ship Based Drones: It is understood that Indian Navy is currently operating Radio-Controlled drones from some of its platforms. However, fully autonomous UAVs which can operate autonomously, round the clock from a ship can be a game changer. The UAV currently being developed by GRSE in partnership with a Start-up will be capable of day and night autonomous operations and autonomous recovery on deck, without any manual intervention. The prototype UAV will be able to provide day and night surveillance video feed to a ground control station on the mothership and complete a pre-defined mission autonomously. Range and functionality of the UAV can be scaled/upgraded as required once the prototype testing is completed.

MAKE IN INDIA INITIATIVES

As part of Make in India initiatives of Ministry of Defence through indigenisation efforts, GRSE has made commendable progress by successfully incorporating a high percentage of indigenous content into the ships. In-house design capability, Innovations in technology and strategic partnerships have propelled achieving over 90% Indigenous Equipment Fit for Anti-Submarine Shallow Watercraft (ASW-SWC), 87% for Survey Vessel Large (SVL), and 80% for P17A Frigates. Some of the initiatives are enumerated as under: -

(a) Positive Indigenisation Lists (PILs): In continuous pursuit of self-reliant India and provide opportunity to the domestic industry DDP/MoD has notified Five (05) PILs for DPSUs for which there would be an embargo on the import beyond the timeline indicated against them. GRSE has total 41 items in 5 PILs promulgated by MoD/ DDP and out of which 30 items have been indigenised so far.

(b) Indigenisation Portal (SRIJAN Defence Portal): To promote indigenisation initiatives of DPSUs & Services and encourage private entity, SRIJAN Defence Portal was launched by MoD on 14 Aug 20. As on date, GRSE has uploaded 57 items in the portal (including 41 PIL items & 16 Non PIL Items), which were earlier imported or indigenous vendors not available, have been displayed on the portal. So far, GRSE has successfully indigenised 39 items (30 PIL & 9 Non PIL item).

(c) Implementation of Make-II: As per directive of the DDP/ MoD and as approved by the Board of GRSE, a "Framework for implementation of Make-II procedure at GRSE" was adopted in the GRSEs Procurement Manual on 09 Jul 19 (Industry funded prototype development). As on date, GRSE has 7 items identified under Make-II initiatives and out of them 4 items have been successfully indigenised. As per directive of DDP/MoD, granular level plan with tentative timelines for ongoing project submitted on 18 Mar 25.

Some of the key items indigenised under DDP/MoD PIL for the period from 01 Apr 2024 to 31 Mar 2025 are enumerated below:

(a) AI Enabled Welding Helmet. GRSE in collaboration with M/s Zeekers has designed & developed a prototype of AI Enabled Welding Hemet to give the welder real time feedback on quality of weld and required corrective action, the helmet provides real time display of welding parameters like Voltage, Current, traverse speed, electrode stick out etc. for immediate corrective control by welder during MIG & TIG welding processes.

(b) Flexible Rod Gearing for Valve consists of a high-performance valve coupler with or without rising stem, valve geared actuators, flexible shaft and a deck box/handle operator with Indicators as options. This flexible rod gearing is the new innovation which enables control of fluid flow in valves through the envisaged control location without hampering/interfering auxiliary items in proximity.

(c) 13M Patrol Boat for Sustainable coastal and Marine

Fisheries project. The construction of the 13m Patrol Boats was undertaken as part of a bilateral agreement between India and Bangladesh. The successful delivery of the 13m Patrol Boats by GRSE to Bangladesh reinforces GRSEs position as a reliable defence exporter.

INNOVATION

GRSE Accelerated Innovation Nurturing Scheme: GRSE launched the second edition of GRSE Accelerated Innovation Nurturing Scheme (GAINS), GAINS-2024 by the Honble Raksha Rajya Mantri, Shri Sanjay Seth. The Open Challenge received an overwhelming response with 66 responses received from innovators across the country, from which 10 promising proposals were selected for detailed evaluation. After a rigorous selection process involving detailed technical deliberations and discussions with the innovators, proposals received from M/s IIT Guwahati Technology Innovation and Development Foundation (IITG TI&DF), and M/s Cloudmetica Technologies, have been declared winners of GAINS 2024 and were awarded with formal development contract and being funded by GRSE.

IDEX Projects of GRSE: GRSE is actively working with various startups selected through iDEX route and co-developing following products/solutions:

• Design of Active Roll Stabilization (System for Naval Ship (DISC -05)

• AI Enabled Welding Helmet (DISC-06)

• Implementation of Industry 4.0 without Wi-Fi Connectivity (DISC- 09)

• Heavy Duty Non-Slip Epoxy Wearing Surface for Modular Steel Bridge (DISC-10)

Intellectual Property Right (IPR): To maintain national sovereignty and achieve military superiority framework, the "Mission Raksha Gyan Shakti" (MRGS) was instituted in 2018 by the Ministry of Defence. This impetus from Ministry has become key driver, stimulating innovation as well as ingenuity in the GRSE ecosystem. GRSE has filed 202 IPRs (198 IPRs post MRGS launching) out of which 110 IPRs are granted (19 Patents, 74 copyrights & 17 Trademarks) as on date. GRSE has trained 1420 personnel including own employees as well as private vendor on IPR awareness till date.

Implementation of Industry 4.0 & QA 4.0: GRSE has embarked on a journey to embrace Industry 4.0 (or Shipyard 4.0) with the aim of transforming its operations, increasing competitiveness, and achieving sustainable growth. Based on the typical nature of operations and need to adhere to IT security compliance requirements, the shipyard has opted to go in for a stage wise implementation rather than attempting a pan yard approach across all operational. New initiatives towards implementation of I 4.0 and QA 4.0 is an ongoing process at GRSE. The Projects are as follows:

i) Online Bill Processing System (OBPS)

ii) Online Vendor Registration Portal (OVRP)

iii) Robotic Welding in shipbuilding fabrication

iv) Robotic Painting of Outer Hull

v) Development of software for AI Enabled Material Code Generation

vi) Tab based Online Inspection Monitoring System (OMS)

vii) Version 2 of AI Enabled Automatic Weld Defect Identification System

viii) Extended application of Phased Array Ultrasonic Testing

INFRASTRUCTURE AND TECHNOLOGICAL MODERNIZATION

In continuation of thrust on infrastructure modernisation & technological upgradation in line with the functional & production necessities, the Company has spent Rs.68 crore as a part of CAPEX investment during the year 2024-25. Some of the major facilities created/modernised during FY 2024-25 and currently in progress are as under:

(a) New Steel Stockyard at RBD Unit: Creation of New Steel Stock Yard along with installation of Gantry Crane at RBD has been completed.

(b) Construction OF Dehumidifier room at RBD: Creation of dehumidifier room of approx. 864 Sqm has been completed at RBD unit.

(c) Refurbishment of Shops & Stores: Refurbishment of major Shops & Stores at RBD, 61-Park & Taratala Units has been completed by replacing old asbestos sheet with metal sheet, structural strengthening and allied jobs.

(d) Rooftop Solar Plant: As a part of green energy initiative for reducing the impact of atmospheric climate change, 550 kWp roof top solar power plant has been commissioned in this year at 61P (400 kWp) and Taratala Unit (150 kWp). With this, the total capacity of rooftop solar plant of the Company is now 2800 kWp i.e. 2.80 MWp, which is more than 50% of total agreement load.

(e) Remodelling of Gates at Main: In order to achieve better aesthetics with modern look, enhance safety & security and for efficient pedestrian/vehicular movement, Remodelling of Gate-1 & Gate-2 was completed during April 2024.

(f) Construction of hardstand at FOJ: Creation of approx.3200 Sqm concrete hardstand at FOJ has been completed to increase the production capacity.

(g) Tower Cranes: To facilitate outfitting work of ships, installation of Tower Cranes on Dolphin Jetty at Main and on Ganga & Hooghly Jetty at RBD are in progress. EDC: Aug 2025

(h) Concrete Hardstand at RBD Unit: Creation of approx.12000 Sqm concrete hardstand at RBD for production activity is in the verge of completion. EDC: Jul 2025

(i) Ship launching pad for Commercial Ship at RBD Unit:

Construction of ship launching pad of approx. area 10216 Sqm for commercial ship building at RBD unit is near to completion. EDC: Jun 2025.

(j) EOT Cranes: Installation of 4 Nos. 10T EOT cranes at 61 P is in progress which will increase the production capacity. EDC: Jul 2025.

(k) Asbestos Free GRSE: Tender has been floated to replace the remaining asbestos shed of Kolkata based units with metal sheets to make GRSE completely asbestos free. EDC: Mar 2026.

FUTURE OUTLOOK

A strong order book for design and construction of Warships for Indian Navy along with non-defence platforms at this juncture holds exciting times ahead for GRSE. With all the policy initiatives taken by the Government of India in the recent times for encouraging & supporting ‘Atmanirbharta¹, the overall scenario for warship building looks quite positive in coming years. The defence shipbuilding segment continues to look promising on account of ambitious acquisition plan of the Indian Navy and Indian Coast Guard which is quite encouraging for the Indian Shipbuilders and the entire eco-system. A number of Request for Proposals (RFPs) for various shipbuilding projects have been floated by the MoD during last one year and some more are expected to come out in the near future. GRSE also plans to enter in to the highly competitive commercial shipbuilding segment in order to address domestic as well as global demands for ships. Your company has identified Ocean going Ferry (Cargo + Passenger), Multi-purpose Vessels, Tugs, Dredger, Barges, and E-Ferry as targeted non-defence products to promote Export Market in Friendly Foreign Countries (FFCs). The shipyard has made significant breakthrough in commercial shipbuilding by securing export orders for construction of 01 advanced Dredger for Bangladesh as well as 08 Multipurpose Vessels for Germany.

It is a good opportunity for the company to become part of global value chain to meet our vision of becoming global player in Shipbuilding. Our willingness to adopt latest technologies and modern tools in various areas of operations would play a significant role in improving efficiency, quality and productivity of the Company. The company has taken steps to adopt Industry 4.0 practices in its core areas of functioning.

GRSE has strengthened its green energy footprint with inauguration of another 400 kWp capacity at 61 Park Unit and 150 kWp capacity at Taratala Unit during FY 2024-25. With this the total capacity of rooftop solar plants at GRSE is now 2800 kWp which is 70% of agreement load of 4MW. GRSE plans to install new Roof-Top Solar Plants of 250 kWp capacity at DEP Ranchi Unit during FY 2025-26 as continual enhancement of the solar power plant capacity as part of its Green initiatives.

GRSE delivered Indias largest "Fully Electric 150 Passenger Catamaran Ferry - DHEU" to Government of West Bengal on 09 Jan 25. This Zero- Emission Electric Passenger Catamaran Ferry revolutionised passenger transport across River Hooghly as well as National Waterways - 1. Consequently, your company received Orders for supply of 07 Nos. 100 PAX and 06 Nos. 200 PAX Hybrid Ferries from Water Transport Dept. Govt. of West Bengal during FY 2024-25. During FY 2024-25, GRSE also received Order for supply of 01 No. Acoustic Research Ship (ARS) for Naval Physical and Oceanographic Laboratory (NPOL), DRDO, Kochi, Kerala and 01 No. Ocean Research Vessel (ORV) for National Centre for Polar & Ocean Research (NCPOR), Ministry of Earth & Science, GoI. GRSE is also working on several projects incorporating new technologies such as Unmanned Surface Vessel, Autonomous Underwater Vessel, Ship based drones, Green platforms etc.

Your Companys major future plans for steady business growth and stability are as follows:

(a) To become a Global player by increasing export footprint by looking at the entire operations from the view point of cost, delivery time, quality & credibility. In this regard, GRSE is actively pursuing all avenues to increase geo-strategic reach for exports of defence as well as commercial ships to friendly foreign countries.

The current export orders, as a result of aggressive marketing strategy in the last few years has now allowed GRSE to gain a foothold in the export market, especially in Europe.

(b) Continuous endeavour towards assessment of tentative & likely opportunities from the Indian Navy, Indian Coast Guard, Indian Army, BRO, Ministry of Home Affairs, Ministry of Earth Sciences, National Centre for Polar and Ocean Research, Naval Physical and Oceanographic Laboratory, Inland Waterways Authority of India, Shipping Corporation of India, Kochi Water Metro, Government of West Bengal and other State Governments over the next five Years.

(c) Your Company also senses a huge opportunity in the GoIs drive to increase the share of Indian built and Indian flagged ships that will carry out our maritime trade. Newbuild projects catering for more than 100 ships, feeding Oil, fertiliser and steel industries are expected in the near future. GRSE has prepared itself through ramping up of design and construction resources to capitalise on this demand.

(d) To meet the growing demands of the defence and commercial shipbuilding sectors, GRSE has envisioned the establishment of a state-of-the-art greenfield shipyard outside Kolkata by 2028 to enhance in-house capacity. This expansion is necessary to overcome the inherent limitations of its current riverine shipyard. GRSE is concurrently exploring potential options on East and west coast, in addition to acquiring parcels of land in West Bengal, with higher tidal depths availability.

(e) Your Company believes that innovation in the production processes coupled with enhanced efficiency and optimum utilisation of resources is the key to reduce production costs. The Company intends to leverage its design, engineering and manufacturing capabilities to improve its procurement and production processes.

(f) Your Company has also planned to further strengthen and expand the refit & repair business verticals and is actively targeting orders from the Indian Navy, Indian Coast Guard, Ministry of Home Affairs, Govt. of West Bengal, Odisha and Tamil Nadu for AMC & Refits of GRSE built vessels & vessels of other companies.

(g) Towards diversification, growth of the Engineering and Engine business segments is also being aggressively pursued. GRSE continues to expand its footprint in the manufacture of modular and portable steel bridges, such as Bailey-type and advanced prefabricated variants, which are crucial for defence, disaster relief, and remote connectivity. This includes indigenisation efforts towards Medium Speed engines and shafting/propellers.

(h) Your Company is steadily building on the successful development of prototypes of Autonomous Vessels, as also widening our footprint in green vessels, especially ferries and tugs. These verticals are expected to create a niche in these areas and capture a significant share of the domestic market, as well as provide export opportunities. ⁽ⁱ⁾

(i) GRSE has also embarked on a strategic initiative to design, develop, and manufacture Naval Surface Guns and other artillery systems to meet the Indian Navys evolving needs. Going forward, GRSE expects a steady order book on this front.

VENDOR DEVELOPMENT INITIATIVES WITH EMPHASIS ON DIVERSITY, SUSTAINABILITY & INCLUSIVITY

GRSE continues to foster a paradigm where vendors are treated as integral extensions of the enterprise rather than independent entities. Our vendor ecosystem reflects the principles of supply chain resilience and sustainable growth.

The companys Vendor Development Policy is geared toward cultivating a robust and diverse supplier base by expanding the vendor pool within existing verticals and aligning with future business needs. This approach enhances supply chain efficiency and adds significant value to productivity. GRSE conducts a series of online and offline vendor development programs throughout the year to identify and onboard capable partners.

To enhance ease of doing business, GRSE has developed an Online Vendor Registration Portal, providing accessible remote onboarding for potential vendors. The portal has seen strong adoption, with hundreds of applications already submitted and many more in the pipeline. The streamlined and transparent registration process has significantly reduced turnaround time.

Quality vendor assessment remains a cornerstone of our development process. GRSEs internal teams conduct detailed evaluations, including site visits, to establish reliable partnerships. This effort aims to shorten lead times, foster innovation, and build capabilities aligned with GRSEs pursuit of excellence in shipbuilding.

GRSE actively promotes awareness of the mutual value created through vendor partnerships. The company regularly participates in nationwide industry forums organized by esteemed bodies such as ICC, BCCI, MSME-DFO, IIF, NSIC-NSSHO, EEPC, IEEMA, IIM Indore, BGBS, NPC, DCCI, FOSMI, DGQA, and others across various states including Tamil Nadu and West Bengal.

Initiatives such as a robust vendor grievance redressal mechanism, online bill processing, and vendor performance evaluation contribute to enhanced transparency, trust, and alignment with global best practices.

In line with Government of India directives, GRSE places special emphasis on onboarding MSMEs, including those led by SC/ST and Women entrepreneurs. Notably, GRSE has met its targets under the MSME Public Procurement Policy for FY 2024-25, achieving 25% procurement from MSEs and 3% from Women-owned MSEs.

During the financial year 2024-25, your Company procured items worth Rs.1320.81 crore from the MSEs, which is approx. 73.9% of the total annual procurement value (considering exclusions as applicable for MSEs). The list of items reserved for procurement from MSEs is available on your Companys website at https://grse.in/policies-for- msme/.

GRSE is registered on the TReDS platform launched by the Reserve Bank of India, enabling seamless financing and discounting of MSME trade receivables through multiple financiers.

As a Defence PSU, GRSE actively engages with the India Defence Mart (IDM) for mapping indigenous defence manufacturers and the Sambandh Portal for quarterly tracking of procurement from SC/ST MSEs.

GOVERNMENT e-MARKETPLACE (GeM)

Since inception of the Government e-Market (GeM) (from 2017), Your company has consistently achieved high target procurement volume of Rs. 1,599.06 crore on GeM during financial year 2024-25.

INFORMATION TECHNOLOGY

Your company has a robust IT system and all the key business processes such as Supply Chain, Finance, HR, Payroll, Vendor Management, and Plant Maintenance have been seamlessly integrated into SAP ERP. This includes establishing a state-of-the-art on-premise Data Centre in Kolkata and a Disaster Recovery Centre in Mumbai. Further, the company employs advanced technologies like AVEVA CAD, VR LAB, and PDM-PLM to enhance design operations.

Cyber Security is accorded adequate impetus with a well-defined organizational structure headed by the Chief Information Security Officer (CISO). The company has implemented secured intranet LAN separated from ILL-based internet LAN across all units, conducted comprehensive Cyber Security Enhanced Awareness Training, and centralized SAP-ERP management to optimize IT infrastructure efficiency. Additionally, the company facilitates remote work through secure VPN access and high-end Video Conferencing solutions. The Company also has company-wide comprehensive CCTV surveillance system ensuring effective monitoring, control and enhancing safety and security measure.

HUMAN RESOURCE & ADMINISTRATION

Manpower

The total Manpower strength in the payroll of the Company as on 31 Mar 2025 (AN) was 1,690 including 488 Board level & below Board level Officers and 109 Supervisors on regular roll, 23 Officers and 64 Supervisors on Fixed Term contract.

Statements showing the representation of SC/ ST/ OBC/PWD/Women, etc., as on 31 Dec 2024 as well as the total recruitment made during the period from January to December 2024 are given at Appendix "A & B" of this report.

Further, in accordance with Ministry of Corporate Affairs Notification dated 05 Jun 2015, Government Companies are exempted from the provisions of Section 197 of the Companies Act, 2013 and its rules thereof.

Industrial Relations

Industrial relations during the period across all Units of the Company including DEP, Ranchi was remained peaceful.

The elections for recognition of Sole Bargaining Union for operative category of employees were conducted on 27 June 2024. The election was conducted by the Office of the Registrar of Trade Unions, Government of West Bengal.

The Management and GRW Ltd. Clerks Union finalized the revised Promotion policy for Office Assistant category of employees. Upon receipt of Board approval, GRSE Office Assistant category of employees Promotion Rules - 2024 was circulated on 24 Dec 2024.

The approval of the Board of Directors for implementation of Premature Retirement Scheme through Special Committee in respect of Unionized employees in line with FR(56)(I) of CCS (Pension) Rules 1972 after amending the Certified Standing Orders of Unionized category of employees for West Bengal based Units and DEP Unit, Ranchi obtained and the scheme has been promulgated effective from April, 2025 onwards.

Human Resource Development

The Company has undertaken various initiatives to enhance the efficiency of the workforce in an atmosphere that encourages pursuit of individual excellence and cohesive teamwork. In FY 2024-25, your company has prepared and implemented a well-defined Annual Training Plan covering technical, leadership, managerial effectiveness, functional, cross-functional and behavioural competencies, and development topics for all categories of employees. During the year, 4,000 training man-days (approx.) were achieved through various training programmes conducted by nominating participants in various online and offline workshops/ conferences/ webinars organised by external agencies/training providers in India. In-house training programmes were also conducted by inviting faculty/ trainers from reputed institutions/agencies, as well as through in-house faculty.

Employee Engagement Initiatives

(A) GRSE DAY CELEBRATION

The 66^th GRSE Day was celebrated on 19 April 2025. GRSE Shri and CMDs Commendation awards were conferred to employees for their outstanding performance in the year 2024. Further, GRSE Merit Awards were given to the employees children who excelled in their academic performance in the year 2023-24. An added attraction of the event was the unveiling of the new logo of GRSE. GRSE Varta 2025, an Annual In-House Journal and Hindi magazine of GRSE Rajbhasha Jagriti were also released on this occasion. Six employees who retired between 01 April 2024 to 31 March 2025 and completed 40 years of service were also felicitated. 61 Park Unit was adjudged as the cleanest unit and conferred Swachh Unit Award.

(B) CELEBRATION OF GRSE FAMILY DAY "AHOBAN

AHOBAN is a day filled with joy and gaiety for recreation of the entire GRSE family. The family members eagerly wait for this annual event. This year AHOBAN was held on 19 Jan 2025 (Sunday) with well thought-out events for each and every family member of GRSE employees. Around 1,200 employees and their family members participated in this event.

(C) VANITA 2025: International Womens Day

GRSE reaffirmed its unwavering commitment to womens empowerment by organising the "Vanita - A Day-Out Programme", as part of the International Womens Day celebration on 12 March, 2025. The event brought together the women employees of GRSE to connect and celebrate.

The event featured various group activities and captivating cultural performances, fostering camaraderie and enjoyment amongst all participants.

(D) OUTBOUND TEAMBUILDING PROGRAMMES

Outbound Teambuilding Workshop for officers in senior management level (Chief General Managers and General Managers) was conducted towards building harmonious intra-team relationships as well as achieving better inter - departmental cohesiveness for enhanced accomplishment of organizational goals.

(E) LEADERSHIP DEVELOPMENT PROGRAMMES

(a) Orientation Programme for Capacity Building of Functional Directors of CPSEs was conducted. This was aimed to enhance the skills of functional directors in fields of corporate governance, finance, risk management, strategic management etc.

(b) Advanced Leadership Development Programme - Women Leading the Way on the theme "Rise with Pride: Evolve Enrich Empower" was conducted for woman officers of the Senior Management. The program addressed the systemic biases and disparities that hinder womens advancement and equipped the participant with the skills, knowledge, and mindset necessary to thrive as leaders in todays competitive business landscape.

(c) Mid-Career Training Program on "Leading and Managing in the 21^st Century" was conducted for officers who were promoted in the rank of Deputy General Managers and Senior Managers.

(d) Management Development Program was conducted for newly inducted Assistant Managers in which they were groomed in areas of Personality Development, Managerial Skills, Softskills, Teambuilding etc.

(F) ADVANCED TECHNICAL TRAINING PROGRAMMES

GRSE executives were imparted technical upgradation training conducted by reputed training providers in India on topics like NACE (National Association of Corrosion Engineers) Coating Inspector Program (Level-1); Marine HVAC (Heating, Ventilation and Air Conditioning), Project Management, NDT (NonDestructive Testing) Methods etc.

(G) APPRENTICE TRAINING

The company has a dedicated Apprentice Training Department named Technical Training Centre for conducting Apprenticeship training at Taratala Unit. The company has trained 196 apprentices during FY 2024-25 wherein the Apprentices were engaged under Trade Apprentice, Graduate Apprentice and Technician Apprentice categories and their total strength was approx. 12% of total manpower strength. Apart from the technical training, various development programmes were conducted for overall personality development of the apprentices. Safety awareness training sessions were conducted for all apprentices before they were placed for on-job-training in the yard.

(H) ANNUAL HEALTH CHECK-UP FOR EMPLOYEES

The annual health check-ups was organized for the employees and 96.84% employees (1590 nos.) employees benefited from this initiative.

(I) REVIEW AND REVISION OF HR POLICIES

Keeping in view the organizational requirement, HR policies are reviewed for talent acquisition, talent management, welfare and career progression of employees. The Company has formulated policies for Time on Task, Internship Scheme, implementation of NPS in GRSE Superannuation Pension Scheme, Prevention of sexual harassment of women at workplace and Guidelines for dealing with Accidents/ Injury inside Factory. In addition, a number of existing policies such as Attendance policy, Recruitment and Promotion Rules for various category of employees were reviewed and revised as per organizational requirement.

(J) PERSONS WITH DISABILITIES (PWD)

The Company extended all necessary relaxations /concessions to the employees with disabilities as per the Statute/Govt. directives.

(K) EMPOWERMENT OF WOMEN

The women representation is 5% of the total strength in the Company at the end of FY 2024-25. During 2024, out of total recruitment of 89 employees, 03 were female employees which is 3.4%.

SAFETY AT WORK

The Shipyard has strived to ensure safe working environment at the company, and in order to achieve the goal, systematic approach to safety management has been adopted through close monitoring and implementation of safety norms and procedures at work place. Your company has achieved a safety frequency rate of 2.72 (for permanent workers) and 0.29 (for contractor workers) during the year 2024-25.

In order to maintain high safety standard, your Company has imparted system-based Safety Training to all employees including contractor employees through Group Safety Training Kiosk (GSTK), where 300 batches (approx.) of Safety Awareness Programme on different topics like Material Handling, Hot Work, Electrical Safety, Painting Activity, Height Work Activity, Work at Confined Space etc. have been organized at Main, FOJ and RBD unit.

INDUSTRIAL SECURITY

GRSE is a Public Sector Undertaking functioning under the administrative control of the Ministry of Defence, Govt. of lndia. The shipyard has been declared a "Prohibited Place" under the Indian Official Secret Act 1923. Sec-2 clause 8 sub clause (a) published under Govt. of West Bengal Gazette Notification Bo. 2145/ (I) (7)-P dated 30^th Mar 2004. It is also placed in Category A i.e. "Highly Sensitive" from security point of view by the IB, Ministry of Home Affairs.

The physical security of the production units of our Company has been entrusted to the Central Industrial Security Force (CISF). Further, twenty-four hours water-front patrolling with armed personnel and a robust CCTV system covering all critical and important locations are in place. The Entry/Exit of all employees is being done through Facial Recognition System. The Police Clearance Certificate of all Contractor Labourers are being obtained before issue of the Gate Pass.

OFFICIAL LANGUAGE

GRSE is committed to adhere to the Official Language (OL) policy of the Government of India (GoI). During the year 2024-25, the Company has achieved the various targets prescribed in the Annual Programme 2024-25 issued by Dept. of OL, Ministry of Home Affairs (MHA), GoI, to transact official work in Hindi. The efforts made towards implementation of Official Language include:

(a) Hindi Month Celebrations: Hindi Month and Hindi Day were observed during September-October month in all the Units and Offices of the Company. During the Hindi month, employees of the Company participated enthusiastically in various programs and competitions.

(b) Official Language Implementation Committee: Official Language Implementation Committee (OLIC) meetings were conducted on quarterly basis under the chairmanship of Chairman & Managing Director, to review the progress made by various departments.

(c) Incentives: Incentive Schemes are propagated among all employees and number of employees who took part in these schemes were awarded with cash prize.

(d) Hindi competitions outside the Company to encourage the use of Hindi: Use of Official Language is not restricted within the four walls of GRSE but is also publicized outside the Company by conducting Hindi competitions. A Hindi Quiz competition was conducted in Arya Parishad Vidyalaya, Khidirpore, a Hindi Slogan writing competition was organized at Calcutta University and a Hindi Essay writing competition was conducted in Sanghmitra Vidyalaya, Kolkata & prizes distributed to deserving students.

(e) Hindi competition under the aegis of TOLIC : GRSE organized Hindi Travelogue/memoir writing competition under the aegis of Town Official Language Implementation Committee in GRSE Bhawan for the member organizations of TOLIC on 19 Dec 2024 in which a large number of Nominated employees from PSUs participated.

(f) Rajbhasha Awards:

(i) TOLIC RAJBHASHA SHIELD:

Rajbhasha Shield has been awarded to GRSE for Excellence in Implementation of Official Language in the company by Town Official Language Implementation Committee (PSU), Kolkata. The award presented by Honourable Chairman of TOLIC was received by Director (Personnel) of GRSE at a grand ceremony held at Kolkata on 28 Aug 2024.

(ii) TOLIC Active Participation Award: Active Participation Award has been awarded to GRSE for the year 2024-25 by Town Official Language Implementation Committee. The Award presented by Honourable Chairman of TOLIC was received by GRSE at a ceremony held at Kolkata on 22 Jan 2025.

(iii) Prizes in Various Inter-PSU Hindi Competitions: GRSE employees have made us proud by winning 02 different prizes in various hindi competitions organized by different PSUs during the year 2024-25 under the aegis of TOLIC (PSU), Kolkata.

(iv) Mgr (OL) has been awarded appreciation letter by TOLIC for Excellence in Implementation of Official Language in the GRSE.

AWARDS & RECOGNITIONS

During the year, your Company has received various awards and recognitions. Some of the important accolades conferred to the Company are as under:

(a) Award on Artificial intelligence. GRSE received the award in Artificial Intelligence category for implementing "I-weld inspector" an AI based software to examine radiography film and detect faults, in the PSE summit of Indian Express Group at Jaipur from 14-15 Jun 24.

(b) Sustainable Governance Champion Award. GRSE received Sustainable Governance Champion Award at Outlook Planet Sustainability Summit 2024 on 24 Jun 24.

(c) CSR Times Awards 2024. GRSE received two prestigious awards at CSR Times Awards 2024 on 23 Aug 24 at Goa in the categories of Healthcare and Skill Development.

(d) Safety, Health & Environment (SH&E) Excellence Award 2024. GRSE received prestigious SH&E Excellence Award 2024 by Confederation of Indian Industry (CII) on 22 Aug 24 for Industrial Safety, Health & Environment.

(e) Best CFO Award. Director(Finance), GRSE received Best CFO Award from Dalal Street Investment Journal (DSIJ) 2024 in the month of Aug 24 for the category Best Returns (MID CAP).

(f) Swachhata Pakhwada Awards. GRSE received Swachhata Pakhwada Awards - 2023 (administered by DDP, MoD) on 01 Aug 24, securing 2^nd position.

(g) TOLIC Rajbhasha Shield. The prestigious Rajbhasha Shield for FY 2023-24 was awarded to GRSE by the Chairman, Town Official Language Implementation Committee (TOLIC) during a presentation ceremony held at Kolkata on 28 Aug 24.

(h) CHRO of the year Award 2024. Director (Personnel) of GRSE, DIG Subrato Ghosh, ICG (Retd.) received prestigious CHRO of the year Award on 19 Sep 24 at 23^rd Asia Pacific HRMC Awards 2024 ceremony at Bengaluru.

(i) Best Use of Emerging Technologies Award. GRSE received the prestigious Best Use of Emerging Technologies Award in 9^th Governance Now PSU IT Awards 2024 on 26 Sep 24 at Delhi.

(j) GRSE received CII Industry-Academia Awards 2024 on 12 Dec 24 in the "Top Industry Excelling in Industry-Academia Partnership 2024" category for its innovative New Generation Electric Ferry.

(k) GRSE received 14^th ICC PSE Excellence Awards 2024 in two categories on 23 Dec 24.

(l) WIPS Award 2025. GRSE received Women in Public Sector (WIPS) award 2025 at the 35^th National Meet of WIPS at New Delhi from 17 -18 Feb 2025.

(m) 11^th Governance Now PSU Awards. GRSE received three awards in the 11^th Governance Now PSU Awards on 28 Feb 2025 for Excellence in Leadership, Financial Performance and Communication Outreach. The Leadership award was conferred to CMD GRSE and GRSE ranked 1^st and 2^nd in the categories of overall Financial Performance and Communication Outreach respectively.

CORPORATE GOVERNANCE

Your Company is committed to maintain the highest standards of corporate governance in all spheres of business operations and continues to lay strong emphasis on transparency, accountability and integrity. Your Company complies with the applicable regulations under the Companies Act, 2013, the SEBI Listing Regulations and also the Guidelines on Corporate Governance for CPSEs issued by Department of Public Enterprises (DPE), except with respect to the composition of Board of Directors viz. appointment of Independent Directors including a Woman Director. Further, due to inadequate number of Independent Directors on the Board, the Company was unable to reconstitute its Nomination and Remuneration Committee and Audit Committee of the Board of Directors w.e.f. 11 Dec 2024 and 27 Dec 2024, respectively. Furthermore, due to which Audit Committee failed to meet within 120 days of the previous meeting held on 13 Nov 2024.

GRSE being a Government Company, the power to appoint Directors vests with the Government of India and the Company has made necessary intimations to the Administrative Ministry for filling up the post of Independent Directors including that of a Woman Director. The Company also strives to comply with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

Further, DPE Guidelines on Corporate Governance for CPSEs provide that CPSEs would be graded on the basis of their compliance with the Guidelines. DPE has graded GRSE as "Excellent" for the year 2024-25.

In terms of Regulation 34 of the SEBI Listing Regulations and DPE Guidelines, a Report on Corporate Governance along with Compliance Certificate issued by M/s. Maheshwari R & Associates, Company Secretaries forms part of this Annual Report.

BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL

The Board of your Company comprises a total of ten (10) directors which includes four (4) Whole-Time Directors, five (5) Part-Time NonOfficial (Independent) Directors including one (1) Woman Director, and one (1) Government Nominee Director.

During the year 2024-25, the following changes took place in the Board of Directors and of Key Managerial Personnel (KMP) of your Company:

Sl. No.	Name of Director	Designation	Date of Appointment	Date of Cessation
(a)	Shri Rajeev Prakash	Government Nominee Director	-	11 Dec 2024
(b)	Dr Garima Bhagat	Government Nominee Director	23 Dec 2024	-
(c)	Shri Sanjay Dattatraya Panse	Independent Director	-	27 Dec 2024

DIRECTORS RETIRING BY ROTATION

Pursuant to Section 152(6) of the Companies Act, 2013 and Article 206 and 207 of Article of Association of the Company, Cdr. Shantanu Bose, IN (Retd.), Director (Shipbuilding), who has served on the Board of Directors and the longest amongst the retiring directors, is liable to retire by rotation, and being eligible, offers himself for reappointment.

DECLARATION AND MEETING OF CRITERIA BY INDEPENDENT DIRECTORS

During the financial year 2024-25, the Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed under the Companies Act, 2013, the Guidelines on Corporate Governance for CPSEs issued by the Department of Public Enterprises and the SEBI Listing Regulations. Further, in the opinion of the Board, the Independent Directors fulfil the conditions prescribed under the SEBI Listing Regulations and are independent of the management of the Company. The Independent Directors of the Company have confirmed that they have registered themselves with the Indian Institute of Corporate Affairs (IICA), and have included their name in the databank of Independent Directors within the statutory timeline and they will also appear for the online proficiency test within the prescribed time, wherever applicable.

MEETINGS OF INDEPENDENT DIRECTORS

During the year 2024-25, a separate meeting of Independent Directors was held on 27 Oct 2024 in which all the Independent Directors were present.

MEETINGS OF THE BOARD

Nine (09) meetings of the Board of Directors were held during the year. For further details, please refer to the ‘Report on Corporate Governance.

REMUNERATION POLICY & EVALUATION OF BOARDS PERFORMANCE

Your Company is a Government of India company under the Ministry of Defence. The Directors of the Company are appointed by the President of India and their remuneration is fixed in accordance with the DPE Guidelines by the Administrative Ministry. The Articles 194 and 216 of the Articles of Association of your Company also states that the President of India will appoint Directors and determine their remuneration. Since, the Board level appointments are made by President of India, the evaluation of performance of such appointees is also done by the Government of India.

AUDIT COMMITTEE

During the year, the Audit Committee had proper composition in accordance with Section 177 of the Companies Act, 2013, the DPE Guidelines on Corporate Governance for CPSEs, 2010 and the SEBI Listing Regulations except for the period from 27 Dec 2024 to 31 Mar 2025.

For further details, please refer the ‘Reporton Corporate Governance.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(3)(c) and 134(5) of the Companies Act, 2013, your Directors hereby confirm that: -

(a) In the preparation of the Annual Accounts for the year ended 31 March, 2025, the applicable accounting standards read with requirements set out under Schedule III to the Companies Act, 2013, had been followed and there are no material departures;

(b) The Directors have selected such accounting policies and 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 your Company as at 31 March, 2025 and of the profit of your Company for the year ended on that date;

(c) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities;

(d) The Directors have prepared the Annual Accounts on a ‘going concern basis;

(e) The Directors have laid down internal financial controls to be followed by your Company and such internal financial controls are adequate and were operating effectively; and

(f) The Directors had devised proper systems to ensure compliance with the provisions of all the applicable laws and that such systems are adequate and operating effectively.

STATUTORY AUDITORS

Your Company being a CPSE, the Comptroller & Auditor General of India (C&AG) has, under Section 139(5) of the Companies Act, 2013, appointed M/s. Guha, Nandi & Co., Chartered Accountants, Kolkata, as the Statutory Auditors of the Company for the financial year 202425.

The Comments of the C&AG u/s 143(6) of the Companies Act, 2013 on the Financial Statements of the Company for financial year 2024-25 form part of this Report.

COST AUDITORS

Pursuant to Section 148 of the Companies Act, 2013 and the Companies (Cost Record and Audit) Rules, 2014, the Board of Directors of your Company has appointed M/s. Chatterjee & Co., Cost Accountants, Kolkata, as the Cost Auditors of your Company for the financial year 2024-25 to conduct audit of cost records maintained by your Company.

SECRETARIAL AUDITOR

In terms of Section 204(1) of the Companies Act, 2013, the Board of your Company has appointed M/s. Mehta & Mehta, Company Secretaries to conduct Secretarial Audit of the Company for the FY 2024-25. The Secretarial Audit Report of M/s. Mehta & Mehta, Company Secretaries is placed at Appendix - "C" to this Report. The Secretarial Audit Report has no adverse remarks. However, the other observations and clarifications made by the Secretarial Auditor in their Secretarial Audit Report are self-explanatory.

Pursuant to the Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"), the Company has obtained an Annual Secretarial Compliance Report for the year 2024-25 from M/s. Mehta & Mehta, Company Secretaries, confirming compliance of SEBI Regulations/Circulars/Guidelines issued thereunder and applicable to the Company and the said report was filed with the National Stock Exchange of India Limited and BSE Ltd. There are no adverse remarks in the said report.

INTERNAL AUDITOR

The Board of your Company has appointed M/s. S Guha & Associates, Chartered Accountants for carrying out Internal Audit of the Company for the financial year 2024-25.

DETAILS OF FRAUDS REPORTED BY AUDITORS UNDER SECTION 143 OF THE COMPANIES ACT, 2013

Nil

CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES

During the year under review, your Company did not enter into any contract/arrangement/transaction with related parties in pursuance of section 188 of the Companies Act, 2013 and the rules framed thereunder and Regulation 23 of the SEBI Listing Regulations. Your Directors draw attention of the Members to Note 32 to the financial statements which sets out related party disclosures as per Indian Accounting Standard 24. The Form AOC-2 on details of related party transactions has been attached as Appendix - "D" to this Report, as required under section 134(3)(h) of the Companies Act, 2013. The Company has a Policy on Related Party Transactions, which can be accessed at https://grse.in/policies/GRSE Policy for Related Party Transactions.pdf

PARTICULARS OF LOAN, GUARNATEES OR INVESTMENTS

During the year under Report, your Company has not:

(a) given any loan to any person or other body corporate;

(b) given any guarantee or provided security in connection with a loan to any other body corporate or person; nor

(c) acquired by way of subscription, purchase or otherwise, the securities of any other body corporate, as prescribed under Section 186 of the Companies Act, 2013.

VIGIL MECHANISM

As a part of its vigil mechanism, your Company has adopted a Whistle Blower Policy to provide appropriate avenues to the employees of your Company to report to the management, instances of unethical behaviour, actual or suspected fraud or violation of your Companys Code of Conduct. As per the Whistle Blower Policy, a whistle blower can send written communications to the Chairman & Managing Director of your Company (or any person to whom he has delegated his power). Alternatively, the whistle blower may send such Protected Disclosure directly to the Chairman, Audit Committee. Once a Protected Disclosure is received, a Screening Committee comprising the Chairman & Managing Director of your Company, a Functional Director as nominated by C&MD and the Chairman, Audit Committee, will be constituted to investigate into the matter. All employees are encouraged to use this whistle blowing mechanism and voice their concerns to the Management. Further, all employees have been given access to the Chairman, Audit Committee. The Whistle Blower Policy can be accessed on your Companys website at https://grse.in/wp- content/uploads/2022/04/Whistle-Blower-Policv-1.pdf.

ANNUAL RETURN

In accordance with the Companies Act, 2013, the Annual Returns in the prescribed format (Form MGT-7) will be available on your Companys website at https://grse.in/annual-returns/.

MANAGEMENT DISCUSSION & ANALYSIS

The Management Discussion & Analysis Report as required under the SEBI Listing Regulations and the DPE Guidelines on Corporate Governance for CPSEs forms part of this Annual Report.

CORPORATE SOCIAL RESPONSIBILITY

Garden Reach Shipbuilders & Engineers Limiteds Corporate Social Responsibility (CSR) projects are aligned with the Gols vision of sustainable and inclusive development and are framed to enhance inclusive development, social justice, sustainable development, community welfare. The company remains dedicated to expanding its CSR efforts, ensuring that its contributions continue to make a meaningful difference in the society. CSR is not just an obligation for GRSE but an integral part of its business. By aligning its business objectives with social and environmental commitments, GRSE exemplifies responsible corporate citizenship, strengthening its role as contributor to national development. GRSE has embedded CSR into its corporate governance and core philosophy, reflecting its commitment to the social and environmental responsibility alike business operations.

GRSEs CSR initiatives have played a significant role in mainstreaming the differently abled, holistic development of underprivileged and vulnerable children, empowering the youth, healthcare etc. for the disadvantaged segment in the society. These initiatives have played significant role in socio-economic development of a large segment of underprivileged populace. The detailed outline of the Annual Report on CSR initiatives undertaken during the FY 2024-25 has been annexed at "Appendix - E"

RISK MANAGEMENT

Pursuant to Regulation 21 of SEBI Listing Regulations, the Company has constituted a Risk Management Committee. The details of the Committee and its terms of reference, Risk Management Policy etc. are set out in the Corporate Governance Report and a detailed note on Risk Management is provided in the Management Discussion and Analysis Report, which forms part of this report.

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

The Securities and Exchange Board of India (SEBI) has mandated inclusion of Business Responsibility and Sustainability Report (BRSR) as part of the Annual Report for the top 1000 listed entities based on market capitalisation. Regulation 34(2)(f) of SEBI Listing Regulations stipulates that the annual report shall include a Business Responsibility and Sustainability Report in the format specified by the SEBI. Accordingly, the Business Responsibility and Sustainability Report for the year 2024-25 has been drawn up and appended to this Report.

INTERNAL FINANCIAL CONTROLS

Your Company has in place adequate internal financial controls with reference to financial statements. A detailed note on Internal Financial Controls is provided in the Management Discussions and Analysis Report, which forms part of this report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Your Company being a Government Company engaged in producing defence platforms, the disclosure of information with respect to conservation of energy, technology absorption, foreign exchange earnings and outgo under the provisions of Section 134(3)(m) read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is not required as the MCA vide its notification GSR No.680 (E) dated 04 Sep 2015 has granted exemption to Defence Public Sector Undertakings.

IMPLEMENTATION OF RTI ACT

RTI matters are being executed as per the provisions of the Right to Information Act, 2005 and Rules made therein. During the year 2024-25, a net total of 212 numbers of RTI Requests through online/ office mode were received to provide information, while opening balance number from previous year was brought forwarded as 27 in number. A total of 237 numbers of RTI applications were replied to during the year including 03 RTI applications which were transferred to other concerned Public Authority and remaining 02 numbers of RTI applications were taken as "Carried forward" to the year 2025-2026.

Total 22 numbers of RTI First Appeals were received during 20242025 through online/offline mode and 01 number of First Appeal was Carried Forward as "opening balance" from previous year. A total of 21 numbers of RTI First appeals were decided and replied and remaining 02 numbers of RTI First appeals were taken as "carried forward" to the year 2025-26.

In this financial Year 2024-25, 04 numbers of RTI Second Appeals were filed with Central Information Commission (CIC). Total 02 numbers of RTI Second Appeals had since been heard and decided and remaining 02 numbers of RTI Second appeals were taken as "carried forward" to the year 2025-26.

The Quarterly Returns are being uploaded on the CICs website as well as on the DOPT website. Proactive Disclosures of information were updated on the website of GRSE under RTI link as directed by CIC.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013

In pursuance of Section 4 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act 2013, the Internal Committee was reconstituted on 18^th October 2024 initially comprising of 10 members for West Bengal based units and presently comprising of 9 members inview of superannuation of 1 member. A separate Internal Committee is in existence for DEP Unit, Ranchi. The Internal Committee of DEP was reconstituted on 29 Mar 2023 comprising of 5 members.

In accordance with Section 21 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act 2013 and the Rules framed thereunder, the following details are submitted:

(i) Number of complaints of sexual harassment received during the year	NIL
(ii) Number of complaints disposed off during the year	NIL
(iii) Number of complaints pending more than ninety days	NIL
(iv) Number of workshops or awareness programme against sexual harassment carried out	05
(v) Nature of action taken by the employer	NA

COMPLIANCE WITH THE MATERNITY BENEFIT ACT, 1961

Your Company is in compliance with the applicable provisions of the Maternity Benefit Act, 1961, in respect of its employees. For further details, please refer the Business Responsibility and Sustainability Report (BRSR).

PUBLIC GRIEVANCES

In order to facilitate resolution of grievances in a transparent and time bound manner, the Department of Administrative Reforms & Public Grievances, Ministry of Personnel, Public Grievance & Pensions, Government of India has initiated a web-based monitoring system at www.pgportal.gov.in (PG Portal).

During the year 2024-25, a total of 17 numbers of Public grievance petitions through online/offline mode were received and 06 numbers of Public grievances were brought forward as "opening balance" from previous year. Total 20 numbers of Public Grievances were resolved and remaining 03 numbers of Public Grievance Petitions were taken as carried forward to the year 2025-26.

VIGILANCE ACTIVITIES

Your Company has a well-established Vigilance Department headed by the Chief Vigilance Officer (CVO). The main thrust of the Vigilance Department is to ensure transparency, fairness & probity in all spheres of activities of the Company. Towards this, the focus of the Department was on Surveillance & Detection as well as on Punitive & Preventive Vigilance. To make Preventive Vigilance function more effective, the Department has given thrust to leveraging of technology. During the year, many spheres of activities were taken up for investigation and various processes were carefully observed, analysed and scrutinised to ensure that the systems of checks & balances are working as per the required parameters. In certain cases, the management was advised for systemic improvements. Apart from the above, the following activities were also carried out by the Vigilance Department during the year:

(a) Periodic/ Surprise rounds by CVO & Vigilance officials at different locations of GRSE were conducted.

(b) Several Preventive Vigilance Measures were undertaken as below:

(i) Files were randomly picked and scrutinized;

(ii) CVCs Online complaint handling mechanism is linked with GRSE Website in addition to the GRSEs own online Complaint handling system; email OTP based Complaint System has been started to minimise spurious and anonymous complaints.

(iii) Complaint boxes are installed in all units of GRSE;

(iv) During Vigilance Awareness Week (VAW) 2024 following activities were conducted:

• Integrity Pledge was taken by all employees.

• Gram Sabha was held at Darbesh Mollar Chak Village, Kakdwip, WB.

• Different awareness activities like Cartoon Making, Slogan Writing, Essay Writing and Quiz involving GRSE Employees and their family members were conducted.

• As a prelude to VAW 2024 various Capacity Building Programmes were held in which around employees participated.

(c) Investigations were conducted on the complaints received from various sources and appropriate actions were taken.

(d) Scrutiny of 20 % of the Annual Property Returns (APR) have been completed for the Year 2024.

(e) Inputs on the vigilance status/ Clearance of officers below board level were conveyed for around 1,515 cases. The inputs on the vigilance profile of the Board level officers were also conveyed as desired by the Ministry.

(f) Several System Improvements were suggested for the interest of the organization.

(g) Structured meetings were conducted between CVO and C&MD in every quarter.

(h) Sensitive posts have been reviewed and identified.

(i) Review of GRSEs Vigilance Clearance policy was taken up.

(j) The following Vigilance Activities are continuing online:

(i) Submission of Annual Property Return

(ii) Processing of Vigilance Clearance of employees

INTEGRITY PACT

One of the initiatives of the Central Vigilance Commission (CVC) to eradicate corruption in procurement activity is the purpose for introduction of Integrity Pact in large value contracts. In line with the directives from Ministry of Defence and the CVC, your Company has adopted Integrity Pact with all vendors/suppliers/contractors/service providers for all Orders/Contracts of value Rs.2 crore and above and only those vendors/bidders, who commit themselves to IP with the Company would be considered competent to participate in the bidding process.

The Integrity Pact essentially envisages an agreement between the prospective vendors/bidders and the principal (GRSE), committing the persons/officials of both sides, not to resort to any corrupt practices in any aspect/stage of the contract. Only those vendors/bidders, who commit themselves to such a Pact with the principal, would be considered competent to participate in the bidding process. Integrity Pact, in respect of a particular contract, would be operative from the stage of invitation of bids till the final completion of the contract. Any violation of the same would entail disqualification of the bidders and exclusion from future business dealings.

As recommended by the CVC, the Company has appointed Independent External Monitors (IEMs) for monitoring implementation of Integrity Pact in the Company. During the Financial Year 2024-25, the IEMs monitored Orders/Contracts of value Rs.2 crore and above and held quarterly meetings with commercial department and half yearly structured meetings with the Chairman & Managing Director.

GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

(a) Detailed reasons for any voluntary revision of financial statement or Boards Report in the relevant financial year in which the revision is made.

(b) Details relating to deposits covered under Chapter V of the Companies Act, 2013.

(c) Issue of equity shares with differential rights as to dividend, voting or otherwise.

(d) No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and future operations of your Company.

ACKNOWLEDGEMENTS

Your Directors express their deep appreciation and place on record their gratitude to the Department of Defence Production and other Departments in the Ministry of Defence for their continued support, assistance and guidance. The Directors also express their sincere thanks to the Government of India and also to the Governments of West Bengal, Jharkhand and various other States, for their continued co-operation and valuable support. Your Directors are particularly grateful to the Indian Navy, Indian Army and Indian Coast Guard Headquarters, Border Road Organisation (BRO), Ministry of Home Affairs, Syama Prasad Mookerjee Port Trust, Public Works Departments of various State Governments, Police Department of West Bengal & Kolkata and other valued customers as well as business associates for the confidence reposed by them in your Company. We will fail in our duty if we do not acknowledge the co-operation and positive approach of the Warship Production Superintendent, Coast Guard Refit Production Superintendent and their dedicated teams under whose oversight our ships are being built/ refitted. Also, we thank all classification societies, in particular, IRS, ABS, BVR, and DNV who have ensured quality and adherence to the required standards.

The Directors acknowledge with thanks the valuable advice rendered by, and co-operation received from the Comptroller and Auditor General of India, the Principal Director of Commercial Audit, Exofficio Member of the Audit Board, Bengaluru, Principal Controller of Defence Accounts (Navy), Mumbai, Controller of Defence Accounts (Navy), Kolkata, Registrar of Companies, the Department of Public Enterprises, the Securities Exchange Board of India, the National Stock Exchange of India Limited and BSE Limited.

The Directors wish to place on record their appreciation to its Statutory, Cost, Internal and Secretarial Auditors, Companys Bankers, Trade Unions and all Officers and Employees at various levels of the organisation for their hard work, dedication and commitment. The enthusiasm and unstinted efforts of the employees have enabled your Company to remain at the forefront of the industry despite increased competition from several existing and new players.

	For and on behalf of the Board of Directors
	Sd/-
Place: Kolkata	Cmde P R Hari, IN (Retd.)
Date: 22 July, 2025	Chairman & Managing Director
	DIN: 08591411