Mazagon Dock Shipbuilders Ltd Management Discussions

FORWARD LOOKING STATEMENTS

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 development, 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.

A. Industry Structure and Developments, Strengths, Weaknesses, Opportunities and Threats, major initiatives undertaken and planned to ensure sustained Performance and Growth:

The global landscape is undergoing a significant transition, driven by rapidly evolving geopolitical and technological developments. These dynamics are reshaping international power structures and creating new security challenges. Indias defence and security policy reflects its firm commitment to regional stability and global prosperity. In this context, Indias strategic maritime location presents a unique opportunity for the development of a robust shipbuilding and ship repair industry.

During the Sectoral Review of Ports, Shipping, and Waterways for FY 2022-23, chaired by the Honble Prime Minister, a key directive was issued to establish India as a global hub for shipbuilding. This aligns with the Economic Survey 2022-23, which identified the shipbuilding sector as a strategically important industry, essential to Indias defence capabilities, energy security, and the growth of the heavy engineering sector.

The survey highlighted two critical economic advantages of shipbuilding:

• High Employment Multiplier (6.48): The industry is capable of generating large-scale employment, particularly in coastal, remote, and rural regions.

• Investment Multiplier (Approx. 1.82): Based on a conservative Marginal Consumption to GDP Ratio (MCGR) of 0.45, an investment of 71.5 lakh crore in naval shipbuilding could generate 72.73 lakh crore in economic activity, underscoring the sectors strong growth potential.

From a maritime defence perspective, India boasts a 7,500 km-long coastline and a territorial border exceeding 15,000 km. Located along major international shipping routes, India depends heavily on maritime trade, which forms a significant component of its GDP. As the economy expands, the volume of maritime trade is expected to grow substantially.

The Indian Navy, in collaboration with the Indian Coast Guard and various state and central agencies, plays a crucial role in safeguarding maritime interests. Its fleet spans from aircraft carriers to small patrol boats, underscoring the need for diverse shipbuilding capabilities.

The global shipbuilding industry encompasses the construction and modification of ships, offshore vessels, and rigs. Domestically, the industry primarily serves the Indian Navy and the Indian Coast Guard. In December 2015, the Government of India approved a new Shipbuilding Policy aimed at providing financial support to shipbuilders and granting infrastructure status to the sector. 74,000 crore has been allocated for implementation over a ten-year period.

Additionally, the Indian Naval Indigenisation Plan (INIP) 2015-2030 outlines the vital role of domestic industry in meeting the sophisticated requirements of the armed forces. This supports the Governments “Make in India” initiative, encouraging the development of advanced indigenous systems for naval platforms.

Company Overview and Industry Position

Your Company, a Defence Public Sector Undertaking (DPSU) under the Ministry of Defence (MoD), specializes in the construction and repair of warships and submarines for the Indian Navy, as well as vessels for commercial clients. It was conferred with ‘Navratna status in 2024 by the Department of Public Enterprises.

MDL is the only Indian shipyard to have built destroyers and conventional submarines for the Indian Navy and the Only shipyard in India Conferred with Navratna

Status. It was also among the first to manufacture corvettes (Veer and Khukri class) domestically. The Company has played a pivotal role in supporting the Indian Navys indigenization goals, contributing significantly to national defence capabilities.

With a strong legacy in advanced warship construction, the Company operates under the motto “Building Quality Ships on Time.” Notable achievements include the successful delivery of:

• Warships: 6 Leander-Class Frigates, 3 Godavari- Class Frigates, 3 Corvettes, 4 Missile Boats, 10 Destroyers, 3 Shivalik-Class Frigates And 01 Nilgiri Class Frigate.

• Submarines: 8 Submarines.

• Indian Coast Guard Vessels: 7 offshore patrol vessels.

• Additionally, the Company has delivered jackets, decks of wellhead and process platforms, jack-up rigs, and various offshore structures.

Business Segments

Your Company operates across two primary divisions:

1. Shipbuilding Division: Involved in building and repairing commercial vessels, as well as refitting naval ships.

2. Submarine and Heavy Engineering Division:

Focuses on the construction, repair, and refit of diesel-electric submarines.

Since its nationalisation in 1960, the Company has delivered 805 vessels, including:

• Warships (ranging from destroyers to missile boats)

• Submarines

• Commercial and Support Vessels, including cargo ships, passenger vessels, supply ships, multipurpose support vessels, water tankers, dredgers, fishing trawlers, tugs, barges, and border outposts for both domestic and international clients.

The Shipbuilding industry is inherently multidisciplinary and possesses a unique set of complexities. In the context of rising threat perceptions and evolving security challenges, defence technology remains highly dynamic, necessitating constant innovation and upgradation. Keeping pace with global technological advancements is one of the foremost challenges in the Warship building segment.

Despite these challenges, your Company has successfully transformed itself into a centre of excellence-powered by modern infrastructure, a highly skilled workforce, and a team of dedicated engineers. This synergy of capability, commitment, and continuous improvement ensures that the shipyard remains at the forefront of Indias defence shipbuilding landscape.

B. SWOT ANALYSIS

1. STRENGTHS

1.1 World-Class Infrastructure and Capacity

Your Company boasts state-of-the-art infrastructure, certified under ISO 9001:2015, for both Shipbuilding and Submarine & Heavy Engineering. The integrated facilities at Mazdock, including the recently modernized yard, Nhava Yard, newly acquired South Yard Annexe, and the Shore Integration Facility, collectively enable the shipyard to serve the needs of both the Ministry of Defence and the commercial sector.

Your Company currently has the capacity to construct ten warships and eleven conventional submarines simultaneously, supported by key facilities such as:

• Module Workshop with two 50-ton EOT cranes and a retractable roof, designed for fabricating large, pre-outfitted hull blocks under a covered environment.

• 300-ton Goliath Crane with a 138-meter span, straddling two slipways and the module workshop.

• Wet Basin spanning approximately 27,000 sq. meters.

• Cradle Assembly Shop used for fabricating and pre-outfitting cradle structures in unit block assemblies.

1.2 Commitment to Make in India

A dedicated Make in India Department drives the Companys indigenization initiatives. Over the past five years, indigenous content in warships and submarines has steadily increased, resulting in reduced construction costs and lower dependency on foreign component suppliers. This strategic focus enhances self-reliance and aligns with the Government of Indias vision of Atmanirbhar Bharat (Self-Reliant India).

1.3 Strategic Geographical Location

Located on the west coast of India, the shipyard benefits from its position along one of the busiest international maritime trade routes connecting Europe,

West Asia, and the Pacific Rim. Based in Mumbai?the commercial capital of India and home to the Western Naval Command?the location provides easy access to key clients, including the Indian Navy and Indian Coast Guard, and a robust network of sub-contractors and ancillary industries, thereby enhancing coordination, logistics, and overall efficiency.

1.4 Advanced Design Capabilities

Your Companys strong technical foundation, proven quality, and the efficient construction of complex vessels are driven by its mature design systems and experienced team. A large pool of naval architects, engineers, and draftsmen, supported by a seasoned senior management team, contributes significantly to accelerated project execution and innovation in design.

1.5 Niche Capabilities

MDL holds a unique position among Defence Public Sector Undertakings (DPSUs) as the only shipyard constructing both conventional submarines and destroyers for the Indian Navy. Additionally, it was one of the first shipyards in India to manufacture Corvettes (Veer and Khukri Class), showcasing its leadership in high-end naval shipbuilding.

1.6 Ongoing Infrastructure Expansion

Your Company owns 40 acres of freehold land at Nhava, Navi Mumbai, being developed into a greenfield shipyard with modern amenities including a shiplift, wet basin, workshops, storage facilities, and a ship repair center. Additionally, it has acquired 15 acres of contiguous land from the Mumbai Port Authority on a long-term lease (29 years), currently undergoing infrastructure upgrades to further enhance operational capacity.

2. WEAKNESSES

2.1 Extended Project Timelines

The construction of warships and submarines involves long gestation periods due to the inherent technological complexities and sophisticated processes required. These extended timelines pose challenges in project planning and timely execution.

2.2 Tidal Constraints and Siltation

The waterfront at our shipyard is susceptible to siltation, necessitating regular dredging to maintain navigable depth. Significant expenditure on such maintenance activities could adversely impact the Companys financial performance and operational outcomes.

2.3 Complex and Risk-Prone Manufacturing Processes

The manufacturing of defence vessels involves intricate processes requiring advanced, high-cost equipment and the handling of hazardous materials. This exposes operations to risks such as equipment breakdowns, performance issues, installation errors, environmental hazards, and potential industrial accidents. Any malfunction or defect in final products may result in substantial damage, including personal injury or loss of life, leading to legal liabilities and reputational risks.

2.4 Project Delay Consequences

Delays in project completion can trigger imposition of liquidated damages, invocation of performance bank guarantees, and indemnity bonds by clients. Such consequences may negatively affect the Companys financial results and expose it to future claims or litigation from customers.

2.5 Dependency on External Suppliers

Timely procurement of raw materials, equipment, and components from Original Equipment Manufacturers (OEMs) and other suppliers is critical to maintaining delivery schedules. Any delays or deviations by suppliers can disrupt production timelines and client commitments.

2.6 Skilled Workforce Requirement

Warship and submarine building is a highly capital- and skill-intensive industry. It demands a specialized workforce capable of integrating advanced technologies, weapon systems, and sensor platforms to meet the strategic and operational requirements of the Indian Navy. Ensuring a steady supply of skilled professionals remains a challenge.

2.7 Competitive Global Pricing Pressures

The global shipbuilding market is marked by intense price competition, particularly from developing nations. These market conditions, coupled with cyclical downturns in the commercial shipbuilding sector, limit the Companys ability to scale up exports competitively.

2.8 Dependence on Foreign OEMs

There is a significant reliance on foreign Original Equipment Manufacturers for critical components such as weapons, sensors, propulsion systems, and other specialized equipment. This dependency poses risks related to supply chain disruptions, cost volatility, and geopolitical uncertainties.

3. OPPORTUNITIES

3.1 Government Support through Financial Assistance Policies

Under the Shipbuilding Financial Assistance Policy (2015), the Government of India has earmarked 740 billion over a 10-year period to support shipbuilders. This policy, along with exemptions from Customs and Central Excise Duties on raw materials and parts used in ship construction, aims to significantly reduce manufacturing costs and enhance the global competitiveness of Indian shipyards.

3.2 Indigenization and Make in India Initiative

The Indian Naval Indigenisation Plan (2015-2030)

highlights the pivotal role of both public and private sectors in meeting the sophisticated requirements of the Armed Forces through the efficient use of existing industrial capabilities. This aligns with the Governments Make in India vision and creates significant opportunities for indigenous design, development, and manufacturing of warships, submarines, and associated components.

3.3 Sagarmala Project and Coastal Infrastructure Expansion

The Sagarmala Project is expected to drive a 15-fold increase in coastal and inland waterway traffic over the next two decades. The projected expansion of port capacity by nearly five times (from the current 350 million tonnes) presents a substantial opportunity for increased demand in shipbuilding, ship repair, and maintenance services, particularly in coastal infrastructure and support vessels.

3.4 Atmanirbhar Bharat and Defence Sector Reforms

The Draft Defence Production Policy (DPP) 2018

aims to build a robust, competitive domestic defence industry. It advocates self-reliance in the development and manufacturing of platforms such as warships and promotes liberalised FDI policies, including automatic approval of up to 74% FDI in areas of niche defence technology. These initiatives provide substantial impetus for industry growth and modernization.

3.5 Ship Repair and Refit Opportunities

Indias strategic location along major global shipping routes connecting Europe, the Americas, and East Asia offers vast potential in ship repair and refit services. The proximity of these international trade corridors to the Indian coastline positions MDL advantageously to service commercial and military vessels traversing these high-traffic maritime routes.

3.6 Defence Exports and High-Tech Integration

With over eight decades of specialized expertise in warship construction and complex weapon-sensor integration, MDL is uniquely positioned to address the growing global demand for advanced defence platforms. The Companys proven capabilities in building high- tech defence vessels provide a competitive edge in the international market.

3.7 Industry 4.0 and Artificial Intelligence Integration

Technologies such as Artificial Intelligence (AI), a

cornerstone of the Industry 4.0 revolution, offer promising avenues to enhance shipbuilding efficiency, automation, predictive maintenance, and intelligent decision-making. Integration of AI-driven solutions across operations could significantly improve productivity, accuracy, and cost-effectiveness.

3.8 Diversification into Aerospace and MRO Services

MDL has initiated diversification efforts by entering the aviation segment and has undertaken a Maintenance, Repair, and Overhaul (MRO) contract for helicopter repair. This marks a strategic expansion into the aerospace and aviation support domain, further broadening the Companys capabilities and revenue streams.

4. THREATS

4.1 Strategic Partnership Model under DPP 2016

The implementation of the Strategic Partnership Model under the Defence Procurement Procedure (DPP) 2016, introduced in 2017, has designated select Indian private companies to partner with foreign OEMs for manufacturing defence platforms. This shift has intensified competition, especially in high-value defence projects, potentially impacting the market share of public sector entities like MDL.

4.2 Global Competition from International Shipyards

Shipbuilders in countries such as China, Japan, and South Korea benefit from extensive government support, cost-effective labour, and massive production capacities. These advantages enable them to offer highly competitive pricing in the international market. While MDL remains confident in the superior technical standards, quality, and efficiency of its vessels, this external competitive pressure cannot be overlooked.

4.3 Challenges with Telescopic Design Methodology

The reliance on telescopic design approaches, wherein design, procurement, and construction phases overlap, poses significant risks. The viability of such models is

increasingly challenged due to dependencies on foreign vendors for critical components such as weapons and propulsion systems. Any delays in customer nominations, procurement approvals, or supplier decisions can lead to time and cost overruns, adversely affecting project deliverables and profitability.

4.4 Geopolitical Risks and Terrorism

Terrorism and radicalisation remain pressing global threats with potential to disrupt economic and defence stability. Indias continued emphasis on counter-terrorism at both bilateral and multilateral levels underlines the severity of this risk. Any regional instability or terrorist activity near strategic assets could impair operations or heighten security costs.

4.5 Exposure to International Sanctions

There exists a risk of exposure to international sanctions, particularly U.S. or EU sanctions, through direct or indirect engagement with restricted countries or entities via technical collaborations. Such risks could interrupt supply chains, hinder foreign cooperation, or result in reputational and financial consequences.

4.6 Margin Pressure due to Fixed-Price Contracts

A significant proportion of MDLs contracts are fixed-price in nature, which limits profitability if cost escalations or timeline overruns occur. Factors such as ambiguous specifications, evolving technical standards, and procedural complexities in defence procurement can result in cost overruns and contractual penalties, negatively impacting the Companys financial health.

C. BUSINESS RISKS AND CONCERNS

Your Company has developed a robust Risk Management Framework to identify, assess, monitor, and mitigate potential risks that could affect operational and financial performance. The key business risks and concerns include:

1. Project Delays and Quality Issues

• Delay in Deliveries: Delays in project execution can severely impact the Companys reputation, operational efficiency, and financial outcomes.

• Subcontractor Performance: Poor quality or delayed performance by subcontractors can compromise project timelines and quality standards, affecting customer trust and business sustainability.

2. Supply Chain and Material Risks

• Import Dependencies: A significant

portion of critical equipment (65-70%) is imported, and fluctuations in exchange rates and international prices directly impact production costs and profit margins.

• Raw Material Availability: Global

disruptions may lead to non-availability or delays in sourcing essential materials, undermining the competitiveness of domestic shipbuilding.

3. Operational and Infrastructure Challenges

• Siltation of Waterfront: The natural tendency for siltation at the shipyard waterfront necessitates regular dredging. This increases operational costs and can delay vessel movements if not adequately maintained.

4. Regulatory and Legal Uncertainties

• Policy and Taxation Risks: Changing

government policies, tax laws, and potential retrospective applications of legal provisions may lead to unforeseen financial liabilities and affect cash flow stability.

5. Competitive Constraints

• Global Benchmarking: To remain

competitive globally, the Company must reduce build periods and pricing to match international shipbuilding leaders. This remains a challenge given the relatively nascent state of the ancillary industrial ecosystem in India.

• Labour and Equipment Costs: Labour costs, though lower than some countries, still contribute 10-15% of total cost. Equipment costs constitute 50-55% due to lack of domestic manufacturing, increasing overall project expenses.

6. Order Book Volatility

• Revenue Realization Risks: Existing

contracts in the order book may not always convert into realized income due to cancellation, delays, or budgetary constraints from clients, impacting revenue projections.

D. Financial performance with respect to operational performance during the year ended 31^st March 2025 are as follows:

(4 in Lakh)

Particulars	As on 31st March, 2025	As on 31st March, 2024
Total Income	12,60,065	10,60,460
Revenue from Operations	11,43,188	9,46,658
Gross Margin (EBIDTA)	3,22,879	2,54,963
Profit before Exceptional Items & Tax	3,10,920	2,46,138
Exceptional Item	-	-
Profit Before Tax After Exceptional Items	3,10,920	2,46,138
Tax Expense	78,432	61,595
Profit After Tax	2,32,488	1,84,543
Net Worth	7,18,084	5,57,068
Book Value per Share (in 4) (FV 45)	178.02	138.10
Earnings per Share (in 4) (FV 45)	57.63	45.75
Dividend per Share (in 4) (FV 45)	17.31	13.73

 

Efficiency Ratios (%)	FY 2025	FY 2024
PBT Margin	27.20	26.00
PAT Margin	20.34	19.49
Debtors Turnover	7.75	6.56
Basic EPS	57.63	45.75
Export/Import	FY 2025	FY 2024
Export as a percentage of Revenue from Operations	0.53%	0.16%
Import as a percentage of Revenue from Operations	16.49%	25.51%

• Total Income has increased by 18.82% from 4 10,60,460 lakh in FY 2023-24 to 4 12,60,065 lakh in FY 2024-25.

• Revenue from Operations has increased from 1 9,46,658 lakh in FY 2023-24 to 4 11,43,188 lakh in FY 2024-25.

• Profit Before Tax (PBT) has increased from 4 2,46,138 lakh in FY 2023-24 to 4 3,10,920 lakh in FY 2024-25.

• Book Value per Share has increased from 4 138.10 in FY 2023-24 to 4 178.02 in FY 2024-25.

• Net Worth has increased by 28.90 % from 4 5,57,068 lakh in FY 2023-24 to 4 7,18,084 lakh in FY 2024-25.

E. CORPORATE INITIATIVES FOR ENSURING SUSTAINED PERFORMANCE AND GROWTH:

Your Company remains committed to strategic initiatives aimed at strengthening its market position, diversifying operations, and ensuring sustainable long-term growth:

1. Expansion into Ship Repair and Refits

• Revival and expansion of refit and repair operations for Warships, Submarines, and commercial vessels offer new revenue streams. MDL aims to significantly scale this segment in the coming years.

2. Diversification of Product Portfolio

• The Company is venturing into the manufacture of underwater platforms, marine and heavy engineering equipment, and offshore platforms. A dedicated team has been formed at the East Yard (Submarine Division) and a new marketing manual has been published to support this diversification drive.

3. Modernisation of Infrastructure

• Continued investment in modernising shipbuilding facilities and equipment is being undertaken to stay aligned with evolving technologies and enhance productivity.

4. Export and Indigenisation Focus

• Exports have been identified as a strategic growth area. Active efforts are underway to penetrate international defence markets.

• The Company is prioritising the indigenisation of equipment and systems in line with the Government of Indias selfreliance (Atmanirbhar Bharat) and Make in India initiatives, aimed at reducing foreign dependency and enhancing cost efficiency.

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

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

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

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

F. INFORMATION TECHNOLOGY

The company has institutionalized SAP/ERP to support its operations. The details are provided in the Boards Report.

G. MARKETING AND BUSINESS DEVELOPMENT

The company has participated in various Naval/ Defence related exhibitions in India as well as abroad in order to project its capability and to assimilate the product range. The details are provided in the Boards Report.

H. HUMAN RESOURCE INITIATIVES

Your Company has taken a number of initiatives on the

Human Resource Management (HRM) front. Some of

the initiatives are as below:

a) Some important events like International Yoga Day and ‘Samvidhan Diwas, Marathi Rajbhasha Din were celebrated and various activities were carried out in order to spread awareness amongst Executives & Non-Executives.

b) Chhatrapati Shivaji Maharaj Jayanti, ‘Dr Ambedkar Jayanti, Mahaparinirvan Diwas and Yard Open Day, were celebrated as part of Employee engagement activities.

c) All HR MoU parameters have been complied/ achieved.

d) Settlement of PF & Gratuity on the last day of the month has been initiated for superannuating employees. Pension Payment Order (PPO) has been handed over to employees on the last date of the month in which they attain the age of superannuation.

e) Celebration of ‘World Blood Donor Day on 14th June 2024 by conducting outreach activities like Health Talk on Blood Donation, Blood Group Testing, and organizing Blood Donation Camp wherein 2600 employees actively participated.

f) Important events like the ‘International Yoga Day was celebrated in virtual mode on 21 June 2024, and ‘Satyanarayan Mahapooja was celebrated on 14 December 2024.

g) Celebration like ‘Har Ghar Tiranga and ‘Ek Ped Maa Ke Naam Campaign were conducted during Independence week, 13 August 2024 to 15 August 2024.Under the campaign ‘Ek Ped Maa Ke Naam MDL has planted 7101 trees till 31 December 2024.

h) The Departmental Promotion for executives in June 2024 and December 2024 and for non-executives w.e.f. 01 October 2024 were completed in time.

i) Annual Health Check-up for all employees was conducted. Total 5743 Employees completed Annual Medical Examination by certifying Surgeon till 31 March 2025.

j) HR Department has been complying with all applicable Industrial & Labour Laws, local laws like The Municipal Corporation Act and Other laws viz. RTI Act and Official Languages Act.

k) MDL filled up 62 vacancies during FY 2024-25 which includes vacancies filled under Government initiative of Recruitment under Mission Mode.

l) MDL has been laying emphasis on the overall I. growth & development of Human Resources and is committed to continue its relentless efforts in updating the competencies of its executives through exposure to various Learning

6 Development programs organized by Institutes of National Importance and through sponsoring function based Seminar /Conferences/ workshops.

m) Clean-ship of adjacent areas/Roads of MDL by external agency: MDL has engaged a cleanship - specific agency for carrying out daily cleaning of roads (approx. 4.5 km) adjacent to MDL.

n) Celebration of ‘Swachhta Pakhwada, 2024 from 01 December 2024 to 15 December 2024.

In accordance with the Ministrys guidelines promulgated, various outreach activities have been conducted from 01 December 2024 to 15 December 2024 at MDL.

o) In accordance with the Ministrys guidelines promulgated, various outreach activities have been conducted and ‘Swachchta Hi Seva Campaign was carried out from 17 September 2024 to 02 October 2024 at MDL. Celebration of ‘Swachhta Pakhwada, was carried out from 01 December 2024 to 15 December 2024. Various programs like Mini Marathon, Nukkad Natak, Sports events were conducted.

p) Training for BOAT Apprentices and Graduate Apprentices on ‘Behavioural and Spiritual aspects of 08 sessions was conducted for selfdevelopment of apprentice students

q) Mazdock Mumbai 10K Challenge - Mazdock Mumbai 10K Challenge was organized on

07 January 2025 at Nariman Point, Mumbai for employees as a part of MDL existence of 250 years. Around 2500 persons participated wholeheartedly in 10KM Challenge Run and 03KM Family Run.

r) MDL was conferred with the distinguished ‘Navratna Status by Dept. Of Public Enterprise.

Govt of India on 25 June 2024.

s) A second edition of the Marathon was conducted on 15 December 2024 to celebrate the grant of Navratna status to MDL

t) Implementation of extended zone of

consideration in promotion of Non-executives for SC/ST employees

EMPOWERMENT AND WELFARE OF WOMEN

a) There are around 255 Women employees (executives and staff) in MDL. Women employees were imparted training on various topics viz. Leadership, Soft Skills and Technical training.

b) MDL also provided Apprenticeship for skill enhancement in various trades to 72 girls Apprentices during this Financial Year.

c) Women employees are members in the Forum of Women in Public Sector (WIPS). WIPS carries out various women empowering activities viz. National & Regional Meet - WIPS, Celebration of International Womens Day.

d) Following enactment of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, an Internal Complaint Committee (ICC) has been in place to deal with and redress complaints on sexual harassment.

e) Regular Awareness programs for enhancement of the prevention and redressal of sexual harassment at the workplace also conducted through print and digital media and regular training programs conducted from external agencies to sensitize employees about appropriate behavior and prevention of sexual harassment. Internal lady faculties shall be developed from within to impart training on POSH to both on roll and contract lady employees.

f) The Company provides Creche facility for the children of Women / Lady Employees under the supervision of a lady Doctor and two female attendants. Currently, 6 children are utilising the creche facility on regular basis.

g) Female employees who are on the permanent as well as Contract basis are entitled to Maternity Leave for 180 days. Similarly, 45 days maximum leave is allowed in case of Miscarriage.

Promotion to Leadership Roles

The percentage of Women employees at the Middle

and Higher management level has increased on account

of promotion in management grade.

a) 02 Women Executives are heading by Section/ Department at MDL.

b) 5.06% Women Executives in Middle

Management/higher Management level of MDL

c) The President of MDL Officers Association is chaired by Woman Executive.

d) Office bearers of Unions at MDL is also represented by women Non Executives

e) The Directors of MDL employees Co-operative Credit Society chaired by 02 Women NonExecutives.

Other Committees

There are a number of other committees wherein Women employees represent, these are:

a) Grievance Redressal of Executives of all Yards of MDL

b) Grievance Redressal Cell for SC/ST Employees

c) Grievance Redressal of Staff/Sub Staff & Workmen of MDL, Mumbai Anik Chembur Yard & Nhava Yard.

d) Redressal of Complaints of Sexual Harassment

e) Women/WIPS Cell

f) Award Committee Learning & Development

With a view to upgrade the knowledge and skill of employees, MDL has conducted various training programs in which lady employees also participated. Lady employees are provided with equal opportunity for skill development and career progression in MDL.

a) Women in Public Sector (WIPS) - Participated National and Regional Conference.

b) Women Empowerment - Leadership Development

c) Stress Management - stress management for working women

d) ‘Mahila Manomilan - Traditional methodology for women Team building

e) Medical Awareness Sessions (Gynecology / Cancer)

f) Leadership Development through IIM - Specialized training programme for Leadership Development

g) Regular sessions on Prevention of Sexual Harassment (POSH) at workplace

h) Security Sensitization (Prevention/Protection from Social crime) - Conducted through Mumbai Police

i) Mentorship - Woman Executives appointed as Mentors

J. INFORMATION TECHNOLOGY FOR HUMAN

RESOURCE:

a) MDL launched online web portal for employees named MDL e-Connect where employees can access static employee details like Pay Slip, PF Slip, Contributory Pension details, Leave balance, Procedures/Manuals and Recent Circulars digitally. The process is a green initiative aimed at reducing the use of paper thereby the carbon footprint of MDL. The online system is simple and user-friendly and this will make the process hassle free for employees. It will also optimize the workload of HR by helping in compliance and reporting. The launch of these initiatives seeks to realize the goal of inclusive development by adopting to the technology. This will further consolidate MDLs initiative of digital transformation and MDLs commitment in participating with the Government of Indias flagship initiative of Digital India.

b) Payroll in SAP system has been merged to single payroll area from three different payroll areas having two different timelines for running of payroll. This has streamlined the payroll process bringing down the number of man- days required for running of payroll. This has also brought efficiency in payment of statutory dues, reconciliation of payroll data and posting of payroll data in finance module.

K. SKILL INDIA INITIATIVES:

In line with the Skill India Mission of Government of

India, your Company has set up an ambitious target for

Skill Development Projects:

a) Trade Apprentices:

i. Induction of 518 nos. Apprentices in October Batch 2024 in MDL.

ii. Basic Training, Soft skill training and on- the-job training were imparted to trade apprentices.

b) Graduate & Diploma Apprentices:

i. Selection of 200 nos. Diploma, Engineering Graduate & General Stream Graduate for One Year on-the-job apprenticeship training in MDL as per Apprentices Act under Board of Apprenticeship Training, Western Region (BOAT WR).

ii. General Stream Graduate of BCOM, BCA & BBA disciplines were selected and deputed to Finance, Commercial, CIT, HR & Admin dept. for one year on the job training.

iii. 74 nos. of Batch 2023-24 completed one- year on-the-job training in March 2025 and 72 nos. joined training in March 2025 under batch 2024-25.

c) Marine Engineering Apprenticeship Scheme:

i. 152 Nos. cadets of Shipping Corporation of India (SCI), Marine Engineering and Research Institute (MERI), TS-Rahman, AMET Chennai and BP marine Mumbai were trained in FY 2024-25.

d) MDL Participation with various Govt. Scheme:

i. Ministry of Corporate Affairs (PMIS Cell) has launched “Prime Ministers Internship Scheme (PMIS)” in 2024 with an aim to help 1 crore youth in next 5 years to gain exposure for 12 months to real-life business environment, across varied professions and employment opportunities in Top 500 companies.

MDL has been selected as a partner company for implementing PMIS

ii. Centre of Excellence in Welding is registered on Skill India Portal under Capital Goods Sector Skill Council with Registration Number: TC220117 for imparting short term training under Skill India Mission.

iii. MDL ATS is also registered with registration number TC225915 for imparting training to un-organized sectors such as Boat Maker & Carpenter under PM Vishwakarma Scheme.

L. INTERNAL CONTROL SYSTEM

i. The Company has an Internal control system commensurate with the nature and size of business which monitors efficient use and safeguarding of resources, compliance with statutes, policies and procedure and maintains accuracy of recording transactions and reporting the same to the Audit Committee and Board. The system of Internal Control comprises of well defined organization structures, pre-identified authority level and procedure issued by management covering all vital and important areas of activities which includes purchase, inventory consumption, Fixed Assets, Cash & Bank management and Treasury, Payroll, Statutory Compliance, Personnel & all other activities involved in financial statement closing process.