Directors Report of Garden Reach Shipbuilders & Engineers Ltd.

Mar 31, 2025

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 ? 5,075.69 crore against ? 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:

(? 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:

(? 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:	Â	Â
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
^5,070.98 crore as against ^3,588.46 crore during the previous year.
The comparative VoP for the three Divisions of the Company are as
follows:

(? 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 ^2,079.26 crore as on 31 March 2025 against ^1,673.44 crore as
reported on 31 March 2024.

Value Addition

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

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:	Â
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 ^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 Company's 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 ?8.95/- per equity share
of face value of ?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 ?4.90/- per equity share of face value
of ?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 ^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-a¬
vis 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.

A. SHIPBUILDING

The Company has achieved a total shipbuilding income of ^4,757.03
crore during 2024-25 as against ^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.	Â	Ship	Yard	Date
(a)	02 Survey Nirdeshak	Vessel (Large), INS	3026	18 Dec 2024

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
(a)	Anti-Submarine Warfare Water Craft (ASW SWC)	Shallow 3032 25 Oct 2024

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

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	2124 to	03 Oct 2024
Â	Govt. of West Bengal	2130	Â
(d)	06 Nos. Hybrid Ferry (200 PAX) for	2131 to	Â
Â	Govt. of West Bengal.	2136	Â
(e)	04 MPV Export Order with Carsten	3050	22 Jun 24
Â	Rehder Schiffsmakler and Reederei	to	Â
Â	GmbH & Co. KG Germany	3053	Â
(f)	02 MPV Export Order with Carsten	3054	04 Oct 24
Â	Rehder Schiffsmakler and Reederei	&	and 04 Dec
Â	GmbH & Co. KG Germany	3055	24
(g)	02 MPV Export Order with Carsten	3056	24 Mar 25
Â	Rehder Schiffsmakler and Reederei	&	Â
Â	GmbH & Co. KG Germany	3057	Â
(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	2121	02 Jun 2024
Â	USD	Â	Â

B.    SHIP REPAIR

The Ship Repair Division having commenced independent operation
from FY 2021-22 with a yearly revenue of approx. ?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
^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 ^113.82 crore in
the year 2024-25 from ^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 ^149.79 crore in
comparison to ^ 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 ^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 ^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 ^50.33
crore during the financial year 2024-25 in comparison to ^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. ^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. ^437 lakh in this
financial year 2024-25.

E. NSG PROJECT

The contract for manufacturing and supply of 30 mm Naval Surface
Guns worth ^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
^73.63 crore from export orders which includes ^19.28 crore from
Shipbuilding, ^26.42 crore from Ship Repair and ^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 ^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:

Sl. No.	DIVISION / DEPTS	Closing order Value as on 31 Mar 2025
A	Ship Division	Â
Â	Ship (including B&D Spares)	22,259.55
Â	Ship Repair & AMCs	282.12
Â	Total Ship Division	22,541.67
B	Engineering Division	Â
Â	Bailey Bridge	90.18
Â	Deck Machinery & Pump	21.59
Â	Total Engineering Division	111.77
C	Engine Division	27.31
Â	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 self¬
reliance 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 GRSE's
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. GRSE's 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 India's
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 India's Green
Tug Transition Plan (GTTP). The GTTP is a strategic initiative aimed
at transforming India's 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 country's 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 in¬
house 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 India's
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 nation's 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 Navy's 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 GRSE's 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 GRSE's 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 Hon'ble 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 start¬
ups 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 ^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 India's 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 Company's 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 GoI's 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 pre¬
fabricated 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. ¹

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 company's 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. GRSE's 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
GRSE's 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 ^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 Company's 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 ? 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 'CMD's 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 Women's Day

GRSE reaffirmed its unwavering commitment to women's empowerment by organising the "Vanita - A Day-Out Programme", as part of the
International Women's 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
women's advancement and equipped the participant with the skills, knowledge, and mindset necessary to thrive as leaders in today's
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 (Non¬
Destructive 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 Non¬
Official (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 BOARD'S
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 2024¬
25.

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 Company's
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 Company's 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
Company's 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 Limited's Corporate Social
Responsibility (CSR) projects are aligned with the Gol's 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.

GRSE's 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 2024¬
2025 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 CIC's 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)    CVC's Online complaint handling mechanism is linked
with GRSE Website in addition to the GRSE's 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 GRSE's 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 ^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 ^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 Board's 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, Ex¬
officio 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, Company's 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

1

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

---

Mar 31, 2024

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 2024, 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 2023-24. During the year, the Company has registered an improvement in Revenue from Operation by 40%, by registering T3,592.64 crore against T2,561.15 crore in the previous year. Furthermore, EBIDTA and PAT experienced robust growth, increasing by 52% and 57%, respectively, underscoring our strong operational performance and profitability.

The financial highlights for the financial year 2023-24 and 2022-23 are summarized below:

('' in crore)

Particulars	2023-24	2022-23
Value of Production	3,588.46	2,547.84
Revenue from Operation	3,592.64	2,561.15
Profit Before Depreciation, Interest and Tax	533.74	350.86
Finance Cost	11.49	6.48
Depreciation	41.33	39.17
Profit Before Tax	480.92	305.22
Provision for Tax	123.65	77.09
Profit After Tax	357.27	228.12
Other Comprehensive Income (Net of Tax)	1.10	0.54
Total Comprehensive Income	358.37	228.67

The financial position of your Company as on 31 March 2024 and 31 March 2023 is appended below:

(T in crore)

Particular	As on 31 March 24	As on 31 March 23
Capital Employed	1,673.44	1,413.82
Gross Block	754.21	729.70
Net Block	492.57	507.61
Working Capital	989.43	724.97
Net Worth	1,673.44	1,413.82
Value Added	1,335.21	953.81
Value of Production	3,588.46	2,547.84
Profit Before Tax	480.92	305.22

Particular	As on 31 March 24	As on 31 March 23
Ratios: (%)
Profit before interest and tax: Capital Employed (%)	29.43	22.05
Profit after tax: Net Worth (%)	21.35	16.14
Gross Profit: Capital Employed (%)	31.89	24.82
Profit Before Tax: Value of Production (%)	13.40	11.98
Value of Production: Capital Employed (%)	214.44	180.21
Current Ratio (In times)	1.12	1.08
Return on Equity (%)	23.14	17.08
Trade Receivables Turnover Ratio (In times)	29.32	25.33
Trade Payable Turnover Ratio (In times)	3.73	4.78

Value of Production

Your company has achieved a record Value of Production (''VoP'') of T3,588.46 crore as against T2,547.84 crore during the previous year. The comparative VoP for the three Divisions of the Company are as follows:

(T in crore)

Year	Ship Division	Engineering Division	Engine Division	Misc.	Total
2023-24	3,373.22	167.17	47.90	0.17	3,588.46
2022-23	2,454.89	69.82	22.97	0.16	2,547.84

Net Worth

During the year under review, your Company reported a Net worth of T1,673.44 crore as on 31 March 2024 against T1,413.82 crore as reported on 31 March 2023.

Value Addition

The Value added during the financial year under review was T1,335.21 crore as against T953.81 crore during the previous year. The Value added per employee rose to T80.97 lakh compared to T54.60 lakh in the previous year.

Appropriations

Considering the financial performance of your Company in the year 2023-24, the Board of Directors are pleased to recommend the following appropriations from the disposable surplus:

(7 in crore)

Profit After Tax	357.27
Other Comprehensive income for the year, Net of Tax	1.10
Total Comprehensive income for the period	358.37
Less:
Final Dividend of FY 2023-24 on the Paid-up Capital	8.02
Interim Dividend of FY 2023-24	90.73
Balance retained in Statement of Profit & Loss	259.62

Contribution to the Exchequer

During the financial year 2023-24, your Company contributed 753.41 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 has 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 Company''s 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 13 February 2024, your Company has paid an interim dividend of 77.92/- per equity share of face value of 7:10/- each to Shareholders who were on the Register of Members as on 23 February 2024, being the record date fixed for this purpose. Further, the Board, at its meeting held on 22 May 2024 has recommended final dividend of 71.44/- per equity share of face value of 710/- each for the financial year 2023-24. Thus, the total dividend for the financial year 2023-24, if approved by the Shareholders, would be 79.36/- per equity share.

MOU Rating

Your Company achieved "Excellent" rating with a score of 90 out of 100 for FY 2022-23 under MoU Evaluation 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 maintain "Excellent" rating once again for its performance during the FY 2023-24.

A. SHIPBUILDING

The Company has achieved a total shipbuilding income of T3,373.22 crore during 2023-24 as against T2,454.89 crore in 2022-23. Notably, the Company delivered a Survey Vessel (Large) to Indian Navy on 04 Dec 2023, which was commissioned on 03 Feb 2024 at Vizag. Further, the details of vessels under construction in your Company as on 31 Mar 2024 are as follows:

Project / Vessel Type	No. of Vessels
Project P-17A for Indian Navy	03
Survey Vessel (Large) for Indian Navy	03
ASW-SWC for Indian Navy	08
NG OPV for Indian Navy	04
Total Ships	18
Patrol Boats for Govt. of Bangladesh	6
NG Ferry for Govt of West Bengal	1

Technical Acceptance of NG Ferry for Govt. of West Bengal was successfully completed on 22 Mar 24.

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

Commissioning

Sl. No.	Ship	Yard	Date
(a)	Survey Vessel (Large)	3025	03 Feb 2024

Delivery

Sl. No.	Ship	Yard	Date
(a)	Survey Vessel (Large)	3025	04 Dec 2023

Launching

Sl. No.	Ship	Yard	Date
(a)	3rd Project P-17A	3024	17 Aug 2023
(b)	3rd Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3030	13 Jun 2023
(c)	4th Survey Vessel Large (SVL)	3028	13 Jun 2023
(d)	4th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3031	16 Nov 2023
(e)	5th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3033	13 Mar 2024
(f)	6th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3036	13 Mar 2024
(g)	Next Generation Electric Ferry	2120	11 Jan 2024

Sl. No.	Ship	Yard Date
(a)	7th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3032 13 Jun 2023

Start Production

Sl. No.	Ship	Yard	Date
(a)	8th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3034	01 May 2023
(b)	1st Next Generation Offshore Patrol Vessel (NGOPV)	3037	25 Sep 2023
(c)	2nd Next Generation Offshore Patrol Vessel (NGOPV)	3038	25 Sep 2023
(e)	3rd Next Generation Offshore Patrol Vessel (NGOPV)	3039	24 Feb 2024
(d)	4th Next Generation Offshore Patrol Vessel (NGOPV)	3040	24 Feb 2024

B. SHIP REPAIR

The Ship Repair Division of your Company has effectively utilised all the three dry-docks taken from Syama Prasad Mukherjee Port (SPMK), Kolkata and successfully completed docking of 18 Ships and Crafts at SPMK, Kolkata and Okha during the FY 2023-24. Additionally, it successfully conducted refits for 12 ships and Crafts, amounting to a total order value of T91.20 crore.

The revenue from Ship Repair activities surged to T 92.89 crore in the year 2023-24 from T33.98 crore in the year 2022-23, reflecting substantial growth and operational efficiency.

The Value of Production (VoP) achieved by the Engineering Division during the financial year 2023-24 amounted to T167.17 crore in comparison to T69.82 crore in financial year 2022-23.

Portable Steel Bridge Unit

During the financial year 2023-24, the Bailey Bridge unit has achieved a Value of Production (VoP) totalling T140.24 crore, marking a significant increase from T69.30 crore in the previous year. This included the production of 90 bridges totalling 6,750 MT, compared to 78 bridges totalling 5,850 MT in the preceding year.

In addition, the Company exported seven sets of 80-feet single-lane modular bridges to the Bangladesh Army under DLOC, amounting to T8.92 crore. Furthermore, one set of 120-feet double-lane modular bridge was delivered to Project Dantak (BRO) in Bhutan during the fiscal year 2023-24.

During the year, your Company swiftly delivered 12 sets of various spans of Bailey Bridges to PWD, Himachal Pradesh in a short span of only two months to restore immediate and critical geo-connectivity in the flood affected regions of Himachal Pradesh.

Your Company also achieved a commendable milestone by delivering 26 sets of double-lane MSBs to BRO under the MoU with DGBR (BRO). Notably, GRSE successfully launched 25 double-lane MSBs across various projects in remote areas of Arunachal Pradesh and the Union Territory of Ladakh.

Additionally, the Company delivered three sets of Bailey Suspension bridges and two sets of 200-feet single-lane modular bridges to Project Swastik (BRO) under the MoU with DGBR (BRO). These strategic installations significantly contributed to the restoration of geoconnectivity in flash flood-affected areas in North Sikkim.

Under its R&D initiatives, the Bailey Bridge Unit of your Company has successfully conducted Load Testing of a 5.30 M Carriageway 200-feet

Single Lane Modular Bridge at Belur, under the supervision of CSIR-SERC, Chennai. This bridge, a first of its kind in India, complies with the requirements of IRC: 6 provisions.

Deck Machinery Unit

Deck Machinery Unit of your Company specialises in manufacturing and supplying various Deck Machinery equipment such as Anchor Capstan, Anchor Windlass, Mooring Capstan, Dock Capstan, General Purpose Davits, Ammunition Davit, Electric Boat Davits, ElectroHydraulic Boat Davits, Survey Motor Boat Davits, Hydrographic Davits, Oceanographic Winch, Anchor cum General Purpose Winches for beaching operations, Helicopter Traversing System (Both Rail based and Rail Less type), etc. Also, the unit is providing product support for all deck machinery equipment under exploitation by the customers and furnishing spares apart from refurbishment of equipment based on the requirements of Indian Navy and Indian Coast Guard.

In FY 2023-24, the Deck Machinery Unit achieved a Value of Production (VoP) amounting to ^26.93 crore which was ^0.52 crore last year. During the year, total of thirty-four (34) Nos. of different types of deck machinery equipment have been supplied to various new construction yards and operational ships of the Indian Navy. The division has achieved certain major firsts to its credit which are highlighted in the succeeding paragraphs.

Major Evolutions

The Rail Less Helicopter Traversing System (RLHTS) has been successfully indigenised and proven on twin hangar platform (P15B vessel INS Imphal). This pioneering achievement is a first of its kind in a Naval platform across the globe with indigenous Ground Support Equipment (GSE) fabricated suitably for ALH MK-I helicopters. The success has been noteworthy as the Sea Acceptance Tests (SATs) were completed without any observations and has earned accolades from the agencies of Indian Navy.

Notably, the Telescopic Helicopter Hangar, complete with hangar doors originally planned for import from overseas firms, has been designed, developed, manufactured, and validated in-house by way of Factory Acceptance Trials (FATs) followed by successful trials at harbour and sea to the satisfaction of Indian Navy.

GRSE DKMC 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 for providing unhindered support to this equipment.

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 the first two SVL vessels, with installation on the remaining two ships currently in progress.

D. ENGINE DIVISION

The Diesel Engine Plant (DEP) of your Company at Ranchi has achieved successful completion of Factory Acceptance Trials and delivery of fourteen (14) in number 1 MW Diesel Alternators (DAs) during the year for the P17A project.

DEP Ranchi has also delivered two (02) 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 ^47.90 crore during the financial year 2023-24 in comparison to ^22.97 crore last year.

40 GARDEN REACH SHIPBUILDERS & ENGINEERS LTD.

Bailey Bridge Components are also being manufactured at DEP unit at Ranchi, where Bailey Bridge Division of DEP Unit achieved a VoP of approx. ^22.56 crore and production of 1573 MT during the financial year 2023-24.

DEP Ranchi is also executing a running rate contract with NSRY Karwar for the W5 routines of 4000 Series MTU engines.

ORDER BOOK POSITION

The total order book position of your Company for the three (3) divisions as on 31 Mar 2024 is as follows:

(^ in crore)

Sl.	DIVISION / DEPTS	Closing order Value
No.		as on 31 Mar 2024
A	Ship Division
	Ship (including B&D Spares)	22,511.12
	Ship Repair & AMCs	82.51
	Total Ship Division	22,593.63
B	Engineering Division
	Bailey Bridge	4.16
	Deck Machinery & Pump	25.89
	Total Engineering Division	30.05
C	Engine Division	29.00
	Total (A B C)	22,652.68

NEW INITIATIVES

To foster long-term business growth and embrace new technologies,

your company has taken up the following major initiatives through

signing of Memoranda of Understanding (MoUs) during FY 2023-24:

(a) Lloyd''s Register Marine and Offshore India LLP, Mumbai, Maharashtra for collaboration in the Design & Development of Hydrogen Fuel Cell Ferry.

(b) M/s Syama Prasad Mookerjee Port, Kolkata, West Bengal to design and construct Green Vessels that meet the specific operational and environmental requirements of the Port Authority (SMPK).

(c) M/s Border Roads Organization (BRO) for manufacture, supply, transport, launch and erection of 10 sets of 400 feet span Bailey Suspension Bridges (40T Single Vehicle) reinforced with Timber Decking and Galvanized Finish.

(d) M/s Steel Authority of India (SAIL) for availability of raw materials like special grade DMR steel in time for GRSE.

(e) M/s. KONGSBERG Maritime Sweden AB for license production with localization of the Kongsberg waterjets to support the indigenous content / Indigenous Assembly of Water Jets.

(f) M/s Caterpillar Inc., USA for Transfer of Technology regarding development of a Medium Speed Marine Diesel Engine - 6 MW for Indian Navy.

(g) Individual License Agreement with M/s Rolls-Royce Solutions GmbH, 88040 Friedrichshafen, Germany, as a part of the Framework License Agreement for Diesel Engine defining the business relationship, included products, conditions, duties, and responsibilities of the Parties.

(h) M/s Crawley & Ray (F & E) Pvt. Ltd for collaboration in design and manufacture of type tested marine valves under the brand name of GRSE.

(i) M/s. Artson Engineering Ltd. Mumbai and M/s. Vishwakarma Salvage Pvt. Ltd., Porbandar, Gujarat to undertake ship repair / refit and allied activities at GRSE / GRSE-KPDD / elsewhere in India as ship repair associate.

(j) M/s Syama prasad Mookerjee Port, (SMPK), Kolkata for Establishment of Portal to provide repair services to vessels calling at ports of Kolkata & Haldia.

(k) Modest Infrastructure Private Limited of the Ultimate Holding Company V S DEMPO HOLDINGS PVT. LTD., Panaji, Goa for ''Cooperation in Shipbuilding on West Coast''.

(l) Naval Group SA, France for Collaboration in design for warship construction.

(m) Hooghly Cochin Shipyard Ltd. (HCSL), Kolkata, West Bengal for collaboration in resource utilisation (engineering, procurement) and construction of ships by GRSE.

(n) M/s Seatech Solutions International (S) PTE Ltd. & Shift Clean Solutions Ltd. and American Bureau of Shipping for collaboration on development and construction of the 50T BP Electric Tug -E-VOLT 50 ("Vessel").

(o) M/s Rudram Infotech, Ahmedabad, Gujarat for the purpose of Business Development and marketing of GRSE products.

(p) M/s Maritime Tactical Systems Inc., Florida, USA to define the rights and obligations of the Parties with respect to the use, handling, protection, and safeguarding of proprietary Information which is disclosed by MARTAC to GRSE.

(q) MoU with Indian Register of Shipping (IRS) for collaboration to jointly pursue and execute contracts for the development of autonomous and green energy vessels, leveraging the complementary capabilities of GRSE and IRS.

(r) MoU with Eurotech Pivot Solutions Pvt Ltd., Coimbatore for collaboration on the Development of Air Cushion Vehicles.

RESEARCH & DEVELOPMENT

Next Generation Electric Ferry: Your Company has developed the design for a fully electric, battery-operated ferry for passenger transportation in the inland waters. This 24m long catamaran hull aluminium vessel with FRP superstructure shall have a max speed of 8 Knots and a capacity to carry up to 150 passengers. This pioneering effort promotes green technologies in the inland water transportation sector, marking a significant step towards replacing diesel ferries and reducing environmental pollution. The Company has successfully built and delivered one vessel to the Government of West Bengal as a pilot project.

Unmanned Surface Vessel (USV): Your Company has developed a 5m USV prototype called ''SWADHEEN''. The potential roles of the USV are bathymetric survey and mine-hunting. The remote-control capabilities have been successfully demonstrated, and the prototype is being enhanced further with collision avoidance capabilities with required payloads for defined potential roles. In September, 2023, GRSE received an order from NSTL, DRDO for the design and development of USV to communicate between various submerged vehicles. Your company has also been issued a project sanction order under Make II project ASV MCM by Indian Navy in Nov 23 for the design and development of Autonomous Surface Vessel - Mine

Counter Measure (ASV MCM) which will play a critical role in securing maritime territories by effectively countering the threat of sea mines.

Autonomous Underwater Vehicle (AUV): GRSE has developed an Autonomous Underwater Vehicle of length 2.15m for Mine Counter Measure operations, Reusable ASW training target, and passive acoustic monitoring. Integration of payloads is under progress.

Unmanned Aerial Vehicle (UAV): Technology for UAVs (Drones) which can be successfully launched and recovered by ships at sea is still in a nascent stage. GRSE in association with M/s Tunga Aerospace is in the process of developing Indigenous Ship Based Aerial Unmanned Drones (UAV) in the country, which will be of great use to the Navy, Coast Guard as well as Coastal Police. This UAV is designed to operate seamlessly offering round-the-clock surveillance capabilities from a ship. One of the key features of this UAV is its ability to autonomously recover on the ship''s deck, further enhancing its operational efficiency. The UAV will transmit real-time surveillance video feeds to a ground control station located on the mother ship, allowing for quick and informed decision-making during missions. With its autonomous capabilities and mission-driven design, this UAV represents a significant leap in technological innovation for maritime operations.

MAKE IN INDIA INITIATIVES

Your Company has implemented the "Make in India and Indigenisation" Policy whereby indigenous vendors are encouraged to quote with maximum indigenisation content through Licensed production with collaboration, Licensed production by way of Transfer of Technology (ToT), Co-production, Assembling, Design and Manufacture in India with ToT. Your Company has developed in-house capabilities to design & build most modern warships in the country and has achieved over 80% indigenisation for the recently completed and ongoing shipbuilding projects (Landing Craft Utility (LCU) Ships, Anti-Submarine Warfare Corvettes, Anti-Submarine Shallow Water Craft (ASW-SWC), Survey Vessel Large (SVL) and P-17A Stealth Frigate ) for Indian Navy, which is a major step towards achieving self-reliance in state-of-the-art warship design and construction.

Ministry of Defence through Department of Defence Production (DDP) published 04 Positive Indigenisation List (PIL) and through Department of Military Affairs (DMA) published 05 PILs respectively for which there would be an embargo on the import beyond the timeline indicated against them. This is a big step towards self-reliance in defence. This offers a great opportunity to the Indian defence industry to manufacture these items using own design and development capabilities to meet the requirements of the Armed Forces. GRSE has identified total 62 items (37 items from DDP-MoD List & 25 items from DMA-MoD list) for indigenisation. GRSE has already indigenised 27 items out of 37 items specified in 04 PILs promulgated by MoD-DDP and indigenization of rest 10 items are scheduled to be completed by year 2027.

GRSE has uploaded 58 items for Public View (37 PIL Items, 17 Non-PIL items and 4 items proposed for PIL-5 of DDP-MoD) at SRIJAN Defence Portal for public view, which were earlier imported or indigenous vendors not available. GRSE has successfully indigenized 35 items of this list (27 are PILs and 08 are non-PILs). GRSE has identified 17 Non-PIL items and of them 08 Non-PIL items are already indigenised.

The Make-II framework (Industry funded prototype development) was implemented at GRSE on 09 Jul 22. As on date, GRSE has 08 items identified under Make-II project, of which 04 are non-PIL and 04 are PIL items. 02 non-PIL and 01 PIL Items have already been Indigenised, whereas, indigenization / development of rest 05 items scheduled to be completed by Dec 2027.

With regard to Innovations for Defence Excellence (iDEX), GRSE has identified 04 iDEX projects, namely, (a) Active Roll Stabilization System (IDEX DISC-05), (b) AI Enable Welding Helmet (IDEX DISC-06),

(c) Implementing Industry 4.0 for shipyard without Wi-Fi connectivity (IDEX DISC-09), and (d) Heavy Duty Non-Slip Epoxy Wearing Surface for Modular Steel Bridge Decks (IDEX DISC-10).

The contract for manufacturing and supply of 30 mm Naval Surface Guns worth ''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

Self-reliance in defence manufacturing is a crucial component of effective defence capability to maintain national sovereignty and achieve military superiority. As a part of these initiatives, a framework, the "Mission Raksha Gyan Shakti" 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 143 IPRs (139 IPRs post MRGS launching) out of which 95 IPRs are granted/ registered (15 Patents, 64 Copyrights & 16 Trademarks) as on date. GRSE trained around 1385 personnel (own employees as well as vendors personnel) with an objective to imbibe technology and innovation driven work culture. Further, to promote and encourage employees towards innovation "Employee Innovation Scheme" has been promulgated at the company level in Jan 2019 which includes monetary and career encouragement benefits.

GRSE Accelerated Innovation Nurturing Scheme - 2023 (GAINS 2023): In pursuance of ''Make in India'' and ''Start-up India'' initiatives of the Government of India, your company has taken an initiative of identifying and encouraging development of innovative solutions, as part of the shipyard''s technology development efforts, by leveraging the vast Start-up ecosystem created in the country. The GRSE Accelerated Innovation Nurturing Scheme (GAINS) is envisaged as a means to leverage this eco system for addressing present and emerging challenges in the ship design and construction industry, while also achieving the objectives of ''Atmanirbharata''. GAINS 2023, an Open Innovation Challenge, was launched by the Honourable Minister of State for Skill Development, Entrepreneurship, Electronics & IT, Shri Rajeev Chandrashekar on 22 May 23. Artificial Intelligence, Renewable/ Green Energy, and Energy Efficiency and Efficiency Enhancement, which are key focus areas for GRSE were the thematic areas for this challenge. This open challenge received an overwhelming response from innovators all across the country, from which six promising proposals were selected for detailed evaluation in Stage II and paid incentives of upto ''4 Lakh each for their efforts. After a rigorous down selection process, following proposals received from M/s Smart Machines and Structures (MSME) and M/s Bodkin Technologies Pvt Ltd (Start-up) were declared winners of GAINS 2023

on 29 Sep 23 and shall be funded by GRSE. Development orders to GAINS 2023 winners were handed over on 26 Mar 24 during the "GAINS-2023 Funding Award Ceremony".

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.

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.

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 2023-24, your Company has generated revenue of Y46.90 crore from export orders which includes Y33.60 crore from Shipbuilding and Y13.30 crore from the Bailey Bridges.

Your Company is presently executing the following Export Orders:

(a) Supply of 06 Patrol/ Surveillance Boats for Govt. of Bangladesh for a value of 1.82 Million USD.

(b) Short Refit of Fast Patrol Vessel (FPV) ''SCG PS Zoroaster'' of the Govt. of Seychelles (Basic Refit Cost ''23 crore received on 22 Mar 2024) to be completed by 06 months.

(c) 02 Nos. Pre-Fabricated Portable Steel Bridge worth ''1.82 crore of Nepal and 01 No. Pre-Fabricated Portable Steel Bridge worth ''0.09 crore of Bhutan.

INFRASTRUCTURE AND TECHNOLOGICAL MODERNIZATION

In continuation of thrust on infrastructure modernisation & technological upgradation in line with the functional & production necessities, the Company has spent Y50 crore as a part of CAPEX investment during the year 2023-24. Some of the major facilities created/modernised during FY 2023-24 and currently in progress are as under:

(a) Upgradation of Main Unit

(i) Installation of Robotic Welding M/C at Ship Building Shop: Installed Robotic Welding M/C at Bay-4 for continuous automatic welding of flat panel to enhance production capacity.

(ii) Renewal of Groundways of Building Berth-1: Renewal of Old existing groundways for launching of ship is under completion.

(iii) DA Manifold & piping network of Building Berth-1:

Complete revamping of DA Manifold & Piping Network to facilitate production effectively has been completed.

(iv) Tower Cranes: Case for installation of Tower Crane on Jetty at Main & RBD Unit is underway to facilitate outfitting work of ships.

(b) Upgradation of DEP Unit: The test bed No.1 is being upgraded for testing MTU engine upto 4500 KW at 3000 engine speed. Under this upgradation, Hydraulic Pressure Controlled Dynamometer has been procured and is under installation along with installation of other accessories required for testing of the engines. The total estimated cost towards upgradation is '' 6.00 crore.

(c) Rooftop Solar Plant: As a part of green energy initiative for reducing the impact of atmospheric climate change, 300 KWp roof top solar power plant has been commissioned in this year at RBD Unit. With this, the total capacity of rooftop solar plant of the Company is now 2250 KW i.e. 2.25 MW, which is more than 50% of total agreement load.

(d) New Steel Stockyard at RBD Unit: Construction of a new steel stockyard at RBD with relocation of a portal crane is in progress.

(e) Concrete Hardstand at RBD Unit: About 4,000 sqm of area has been developed at RBD Unit with concrete hardstand for production support, storage of ship materials & hull blocks.

(f) Retrofitting of Old Buildings at Main & 61-Park: Retrofitting & structural refurbishment/repair of old building of Main (Security Building, ES Building & Time Office) and 61-Park (Block-D & Block-A partially) has been completed.

(g) Refurbishment of Shops & Stores - Refurbishment of major Shops & Stores at RBD, 61-Park & Taratala Units is under completion by replacing old asbestos sheet with metal sheet, structural strengthening and allied jobs.

FUTURE OUTLOOK

A strong order book for design and construction of 18 warships for Indian Navy 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 ''Atmanirbharta'', 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. Further, the MoD plan to increase export of defence products to 3.59 Billion USD by end of 2024-25 augurs well for all of us. 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. A dedicated Commercial Shipbuilding Department headed by one CGM level officer has been constituted to explore the vast opportunities prevalent in this sector. Your company has identified Ocean going Ferry (Cargo Passenger), Tugs, Dredger, Barges, and E-Ferry as targeted non-defence products to promote Export Market in Friendly Foreign Countries (FFCs).

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 such as ''Design'', ''Planning'', ''Production'' and ''Supply Chain Management''.

GRSE has strengthened its green energy footprint with inauguration

of another 300 kWp capacity of solar power at RBD Unit on 04 Apr 2024. The total capacity of rooftop solar plants at GRSE is now 2250 kWp which is 56% of agreement load of 4MW. GRSE plans to install new Roof-Top Solar Plants of 300 kWp capacity at 61 Park Unit and 200 kWp capacity at Taratala Unit during FY 2024-25. GRSE has plans to further enhance the solar power plant capacity as part of its Green initiatives.

Technical Acceptance of India''s largest "Fully Electric 150 Passenger Catamaran Ferry" built by GRSE for Government of West Bengal was signed on 22 Mar 24. This zero-emission ferry is poised to revolutionise passenger transport across River Hooghly as well as National Waterways - 1 and other Metro waterways of the country. GRSE also received a Letter of Intent on 09 Nov 2023 towards construction and delivery of an Ocean Research Vessel for National Centre for Polar & Ocean Research (NCPOR) Goa, under the Ministry of Earth Sciences. The contract value is ''Rs 839.55 crore. The newly formed "Innovation & New Technology" department at GRSE is also working on several projects incorporating new technologies such as Unmanned Surface Vessel, Autonomous Underwater Vessel, Ship based drones, Green platforms etc.

GRSE has a glorious past and the company''s credentials and achievements are unmatched in the Indian Warship building arena. GRSE presently has a world class infrastructure and amongst the best talent that is needed to scale newer heights in shipbuilding.

Presently, the company is at the cusp of transformation to embark upon an unprecedented growth trajectory. This entails a mindset change, coupled with efficient project management, strategic partnerships, new technology adaptation and most importantly effective management of resources. GRSE has set its aspirations on "Upgradation as a "Navaratna" Company by 2030 and be Globally recognized as the Best Indian Shipyard".

Your Company''s 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.

(b) 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.

(c) 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, Kochi Water Metro, Government of West Bengal and other State Governments over the next five Years.

(d) Your Company is 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, and has plans to further strengthen and expand the refit & repair business verticals.

(e) Towards diversification, growth of the Engineering and Engine business segments is also being aggressively pursued.

VENDOR DEVELOPMENT

VENDOR DEVELOPMENT WITH IMPETUS TO MICRO, SMALL AND MEDIUM ENTERPRISES

Our vendor base has played a pivotal role in achieving sustainable growth of GRSE and your company is in constant endeavour to strengthen the MSME footprints in different aspect of business growth through various vendor meets, seminars, webinars, etc. organized by various important fora like CII, BCCI, MSME, etc. In the post pandemic chapter too, webinars are being continued to be leveraged for identifying capable entrepreneurs to the GRSE fold.

In post Covid19 scenario, when resurgence with time was a real challenge throughout the world, GRSE has continued their production excellency with the delivery of warships within a very short interval. It was only possible when the organization is equipped with world class commercial and best industrial practises and a robust vendor base. The close monitoring of the major vendor''s performance, introduction of vendor grievance redressal system, and online performance rating system for the vendors are the other major verticals of such performance. Further, the development of online vendor registration for new vendor has been undertaken in order to improve ease of registration process and minimise the registration cycle time.

In order to develop vendor base, your Company is in constant search for competent vendors including MSMEs through organizing & participating in various Vendor Meets, Seminars, Webinars, etc., organized by various important fora like; BCC (Bharat Chamber of

Commerce), MSME-DFO (MSME-Development & Facilitation Office), NSIC-NSSHO (National Small Industries Corporation-National SC ST Hub office), EEPC (Engineering Export Promotion Council of India), MCCI (Merchants'' Chamber of Commerce & Industry), SIDBI (Small Industries Development Bank of India).

As a special initiative, your Company had organised an event, "Vendors Meet 2023" - An interactive session with Business Partners for detailed interaction with stakeholders. Several business partners participated in the programme, making it a grand success.

Your company has made significant improvement in production with effective execution of contract management on the outsourced jobs, engagement of good capable service & supply vendor, maintaining proper vendor relation and monitoring vendor performance.

Your Company has been providing increased thrust on enhancing procurement from Micro and Small Enterprises (MSEs) and has strictly adhered to the restriction/preference on MSME vendors wherever applicable in line with MSMED Act, and same are being strictly followed and monitored closely.

Your Company extends technical guidance and requisite support to these industries wherever required by regularly conducting MSE Vendor Development programmes in association with CII and MSME Ministry, Government of West Bengal. In order to meet the requisite quality standard of the product, our quality control personnel are visiting these industries to assist them.

During the financial year 2023-24, your Company procured items worth ''987.50 crore from the MSEs, which is approx. 73.76% 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 Company''s website at https://grse.in/policies-for-msme/.

Your company is continuously increasing the permanent vendor base after due assessment as per laid down company policy & procedure abiding by directive of MSME Public Procurement Policy.

Being a DPSU, your Company has on-boarded on TReDS Platform and MSME Sambandh & MSME Samadhaan portals complying with Government guidelines/ directives.

GOVERNMENT e-MARKETPLACE (GeM)

Since inception of the Government e-Market (GeM) (from 2017), Your company has consistently achieved highest procurement volume on GeM amongst all the shipyards.

During the financial year 2023-24, your Company has recorded GeM procurement volume of ''572.00 crore.

INFORMATION TECHNOLOGY

Your company has prioritized SAP implementation and IT initiatives extensively across its operations. This includes establishing a robust IT infrastructure with a state-of-the-art on-premise Data Centre in Kolkata and a Disaster Recovery Centre in Mumbai. Since 2010, key business processes such as Supply Chain, Finance, HR, Payroll, Vendor Management, and Plant Maintenance have seamlessly integrated into SAP ERP. Moreover, the company employs advanced technologies like AVEVA CAD, VR LAB, and PDM-PLM to enhance design operations.

Cyber Security remains a top priority with a well-defined organizational structure overseen by the Chief Information Security Officer (CISO). The company has implemented AIR-GAP and ILL-based internet LAN across all units, conducted comprehensive Cyber Security Enhanced Awareness Training, and centralized SAP-ERP management to optimize IT infrastructure efficiency. Innovations in Product Data Management (PDM) and Product Lifecycle Management (PLM) software are set to revolutionize operations, particularly in modular construction for P17A ships. 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 roll of the Company as on 31 Mar 2024 was 1,649 including 473 Board level & below Board level Officers on regular roll, 11 Officers and 60 Supervisors on Fixed Term contract.

Statements showing the representation of SC/ ST/ OBC / PWD / Women, etc., as on 31 Dec 2023 as well as the total recruitment made during the period from January to December 2023 are given at Appendices "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 under review across all Units of the Company including DEP, Ranchi remained more or less peaceful.

The Management and GRW Mazdoor & Staff Union signed a Memorandum of Understanding on Promotion policy for operative category of employees on 16 May 23 upon receipt of Board approval, Memorandum of Settlement in the same matter was signed on 29 May 23.

The Management and 03 Unions representing Unionized employees of DEP, Ranchi signed a Memorandum of Settlement on Promotion policy for operative category of employees on 03 June 23.

Human Resource Development

The Company is nurturing and developing a well-balanced workforce of talented individuals who can contribute towards enhancing organization''s growth trajectory. 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 2023-24, your company has prepared and implemented a well-defined Annual Training Plan covering technical, leadership, managerial effectiveness, functional, cross-functional and behavioural competencies development topics for all categories of employees. During the year, 3,860 training man-days (approx.) were achieved through various training programmes. Training programmes were conducted by nominating participants in various online and offline workshops/conferences/webinars organized 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 65^th GRSE Day was celebrated on 22 Apr 2024. ''GRSE Shri'' and ''CMD''s Commendation'' were conferred to employees for their outstanding performance in the year 2023. GRSE Merit Awards were given to the employees'' children who excelled in their academic performance in the year 2022-23. ''GRSE Varta 2024'', an Annual In-House Journal was released on this occasion. Employees who retired between 01 April 2023 to 31 March 2024 and completed 40 years of service were also felicitated. Taratala Unit was adjudged as cleanest unit and conferred Swachh Unit Award. Prizes for Group Events of the Annual Sports viz Cricket & Volleyball were given to the Runners-up and Winner teams during the event. Employees staged cultural programme which was appreciated by all.

(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 14 Jan 2024 with well thought-out events for each and every family member of GRSE employees. Around 1000 employees and their family members participated in this event. Cultural event was performed by the in-house talents.

(C) VANITA 2024: INTERNATIONAL WOMEN''S DAY

GRSE celebrated International Women''s Day in a creative and thoughtful manner. A day-out programme filled with fun and frolic was organized for all the female employees of the company on 06 March 2024. The programme comprised of various activities and scintillating cultural performances by employees.

(D) 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 engagement of project-based manpower on contractual basis, re-designation of senior officers as General Manager In-charge, absorption of Fixed term Supervisors in permanent roll and Child adoption leave. In addition, a number of existing policies such as Compensation package scheme, Recruitment and promotion Rules for various category of employees, Foreign TA/DA rules for non-executives, leave entitlement for new joinees were reviewed and revised as per organizational requirement.

(E) CAREER ADVANCEMENT SCHEME FOR NON-EXECUTIVE CATEGORY EMPLOYEES

Internal induction was conducted for career upgradation of deserving employees of GRSE from non-executive category

working in permanent roll of the company under ''Abhyudaya Scheme for Career Advancement of Non-Executives Category of Employees'' in 2023. As per the scheme, selection process consists of knowledge test, skill test and personal interview.

(F) LEADERSHIP DEVELOPMENT PROGRAMMES

Orientation Programme for Capacity Building of Functional Directors of CPSEs was conducted for Officers in Senior Management Level. It aimed to enhance the skills of Functional Directors in fields of corporate governance, finance, risk management, strategic management etc.

(G) MID-CAREER TRAINING PROGRAM

Mid-Career Training Program on "Leading and Managing in the 21st Century" was conducted for Managers and Senior Managers coming in the zone of promotion. It aimed to develop and sharpen the managerial and leadership skills of mid-level managers.

(H) MANAGEMENT DEVELOPMENT PROGRAM

Management Development Program was conducted for newly inducted Assistant Managers in which the officers were groomed in areas of Personality Development, Managerial Skills, Soft skills, Teambuilding etc.

(I) SAFETY TRAINING

Safety Training was conducted for employees as per MoU directives through GST- K in which around 350 employees were trained.

(J) SKILL UPGRADATION AND CERTIFICATION TRAINING PROGRAM

Skill Upgradation and Certification Training Program in various technical trades was conducted in order to improve the efficiency of the operatives in which around 130 employees were trained and certified.

(K) Apprentice Training

The company has trained 210 apprentices during FY 2023-24. Apprentices were engaged under Trade Apprentice, Graduate Apprentice and Technician Apprentice categories and their total strength was approx. 13% of total manpower strength.

The company has a dedicated Apprentice Training Department named Technical Training Centre for conducting Apprenticeship training at Taratala Unit. 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.

PERSONS WITH DISABILITIES (PWD)

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

EMPOWERMENT OF WOMEN

The women representation is 5.2% of the total strength in the Company at the end of FY 2023-24. During 2023, out of total recruitment of 51 employees 05 were female employees which is 9.8%.

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 1.24 (for permanent workers) and 0.66 (for contractor workers) during the year 2023-24.

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 more than 167 batches 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.

As a promotional measure, different safety competitions were conducted like drawing competition, picture composition competition and safety quiz competition by arrangement of mobile safety display van

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 30th 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 Armed Guards of 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 2023-24, the Company has achieved the various targets prescribed in the Annual Programme 2023-24 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 was 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 in local schools 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 in Schools. Hindi Essay competition was conducted on 17^th October 2023 in Brahma Hindi Primary School and Hindi Quiz competition was organized on 11^th December 2023 in Fatehpur Hindi Nagri Pracharak Vidyalaya and prizes distributed to best three participants.

(e) Hindi competition under the aegis of TOLIC: GRSE organized Hindi Essay competition under the aegis of Town Official Language Implementation Committee on 20^th December 2023. Nominated employees of more than 30 PSUs of Kolkata including GRSE participated in this competition.

(f) Rajbhasha Awards:

(i) TOLIC RAJBHASHA SHIELD: Rajbhasha Shield has been awarded to GRSE for the year 2022-23 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 25^th August, 2023.

(ii) Certificate of appreciation by MHA-OL : GRSE was awarded a certificate of appreciation by Smt. Anshuli Arya, IAS, Secretary, Official Language Department, MHA-OL in the presence of Union Minister of State for Home Affairs, Shri Nishith Pramanik. This recognition was given to the Company for its special contribution in the successful organization of Joint Regional Official Language Conference of East and North-Eastern Regions, organized by the Department of Official Language, Ministry of Home Affairs in Siliguri (West Bengal) on March 08, 2024.

(iii) TOLIC Active Participation Award: Active Participation Award has been awarded to GRSE for the year 2023-24 by The Town Official Language Implementation Committee. The Award presented by Honourable Chairman of TOLIC was received by Director (Personnel) of GRSE at a ceremony held at Kolkata on 31^st January 2024.

(iv) Prizes in Various Inter-PSU Hindi Competitions: Our

GRSE employees have made us proud by winning 04 different prizes in Various Hindi Competitions organized during the year 2023 by different PSUs under the aegis of TOLIC (PSU), KOLKATA.

(v) Manager (OL) has been awarded appreciation letter by TOLIC for Excellence in Implementation of Official Language in the GRSE on 25 Aug 2023.

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) Governance Now 10^th PSU Award for "Communication Outreach", "Nation Building" and "Reskilling of Employees (Training & Development)" on 22 Mar 24.

(b) "Sakriya Sahbhagita Samman" from the Town Official Language Implementation Committee for the year 2023-24 on 31 Jan 24.

(c) 91^st SKOCH Awards for "Unique Transfer & Loading of Fully Built 250 T Goliath Crane" on 27 May 23.

(d) Durga Bharat Param Samman on 18 Oct 23.

(e) PRSI National Awards 2023 for "Coffee Table Book", "Best PSU for Implementing CSR", "Best PSU for Childcare Project", "Best Organisational Effort for Atmanirbhar Bharat" and "New R&D Efforts in Defence Sector" on 25 Nov 23.

(f) 13^th ICC PSE Excellence Award 2023 for "Company of the Year", "Contribution of Women &/ Differently Abled in PSEs", "CSR & Sustainability", "Operational Performance Exscellence" and "Corporate Governance" on 20 Dec 23.

(g) "Best Strategic Central Public Sector Enterprise of India - Defence (Naval & Shipbuilding)" at 6^th IPSE Awards 2024 on 10 Feb 24.

(h) WIPS Award 2024 in the Category "Best Performing Enterprise 2024" on 12 Feb 24.

(i) Cmde PR Hari, IN (Retd), CMD GRSE recognized with ''CEO of the Year Award'' at the 22^nd Global Edition - Business Leader of the Year 2024 & the ''CEO with HR Orientation Award'' at the World HRD Congress 2024 on 26 Feb 24.

(j) CII AI Award in the Project "AI Enabled NDT" on 26 Feb 24.

Your Company is committed to maintain the highest standards of corporate governance in all spheres of business activity carried out by your Company 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. 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 2023-24.

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 2023-24, the following changes took place in the Board of Directors and of Key Managerial Personnel (KMP) of your Company:

Sl. Name of No. Director	Designation	Date of Appointment	Date of Cessation
(a) DIG Subrato	Director	20 Jun 2023	-
Ghosh, ICG	(Personnel)
(Retd.)

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, Shri Ramesh Kumar Dash, Director (Finance), 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 2023-24, 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 2023-24, a separate meeting of Independent Directors was held on 20 Jan 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 BOARD''S 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 Article 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.

For further details, please refer the ''Report on 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, 2024, 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, 2024 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 202324.

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 2023-24 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 2023-24 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 2023-24. 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 SEBI circular no. CIR/CFD/ CMD1/27/2019 dated February 8, 2019, the Company has obtained an Annual Secretarial Compliance Report for the year 2023-24 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 2023-24.

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 Company''s 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 Company''s 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 Company''s 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

Corporate Social responsibility is an integral part of GRSE''s Corporate strategy. Fulfilment of social and environmental responsibilities are accorded equal importance alike business operations.

GRSE continuously endeavours to align its CSR initiatives with national mission and Sustainable Development Goals. The CSR initiatives were primarily implemented in the areas surrounding the production units with the aim to improve the quality of life and bring about inclusive growth for the marginalised segment.

The CSR projects are carefully selected to address the concerns of the communities residing in the vicinity and is in consonance with the social fabric of the local community.

GRSE''s CSR initiatives have played a significant role in mainstreaming the differently abled children, holistic development of underprivileged and vulnerable children, empowering the youth by providing employment oriented vocational trainings, health camps for the disadvantaged segment etc. These initiatives have played significant role in socioeconomic development of the vast stretch of underprivileged segment. The detailed outline of the Annual Report on CSR initiatives undertaken during the FY 2023-24 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 2023-24 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 Sept 2015 has granted exemption to Defence Public Sector Undertakings.

IMPLEMENTATION OF RTI ACT

RTI matter are being executed as per the provisions of the Right to Information Act, 2005 and Rules made therein. During the year 2023-24, a net total of 144 number RTI requests through online/ offline mode were received to provide ''information'', while opening balance number from previous year was brought forwarded as 12 in number. A total of 128 number of RTI applications were replied to during the year and 01 RTI application transferred to other concerned public authority and remaining 27 number of RTI applications were taken as "carried forward" to the year 2024-25.

13 No. of RTI First Appeals were received during 2023-24 through online/offline mode and 02 No. First Appeal was carried forward as "opening balance" from previous year. A total of 14 number of RTI First Appeals were decided and replied and remaining 01 of RTI First appeal were taken as ''carried forward'' to the year 2024-25.

In this financial Year 2023-24, No RTI Second Appeal were filed with Central Information Commission (CIC), while opening balance from

previous year was brought forwarded as 01 in number. The said second appeal has since been heard and decided on 24 Apr 2024.

The Quarterly Returns are being uploaded on the CIC''s 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. In compliance with the provision of section 26 of the RTI Act, 2005, an in-house Awareness programme on RTI Act was conducted during the year 2023-24.

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 31^st August, 2023 comprising of 10 members for West Bengal based units. A separate Internal Committee is in existence for DEP Unit, Ranchi. The Internal Committee of DEP was reconstituted on 29 Mar 23 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 of 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	03
(v)	Nature of action taken by the employer	NA

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 2023-24, a total of 19 number of Public Grievance Petitions through online/offline mode were received and no grievance was brought forward as "opening balance'' from previous year. Total 13 number of Public Grievance were resolved and remaining 06 number of Public Grievance Petitions are under different stages of action and carried forward to the year 2024-25.

VIGILANCE ACTIVITIES

Your Company has a well-established vigilance department headed by 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, focus of the department was on Surveillance & Detection as well as Punitive & Preventive vigilance. To make preventive vigilance function more effective, the Department has given thrust to leverage technology. During the year, many spheres of activities were taken up 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) CTE Type Intensive Examinations were conducted in the FY 202324

(b) An awareness cum sensitization program for all Officers and Supervisors on filing of Annual Property Return was conducted in Jan 2024.

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

(i) Files were randomly picked and scrutinized;

(ii) CVC''s Online complaint handling mechanism is linked with GRSE Web Site in addition to the GRSE''s own online Complaint handling system;

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

(iv) During Vigilance Awareness Week (VAW) 2023 following activities were conducted:

• Integrity Pledge was taken by all employees.

• Gram Sabha was held at Gosaba Village.

• CBI Kolkata conducted an awareness session on Preventive Vigilance.

• Different awareness activities involving GRSE

Employees and their family members were conducted.

• Vendor''s Meet was conducted wherein Vendors participated.

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

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

(e) Scrutiny of 20 % of the Annual Property Returns (APR) have been completed for the Year 2023.

(f) 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.

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

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

(i) Sensitive posts have been reviewed and identified.

(j) The following Vigilance Activities have been made and/or 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 ''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 Shri Bam Bahadur Singh and Shri Pidatala Sridhar, IRS (Retd.) as Independent External Monitors (IEMs) for a period of three years from 26 Dec 2021 for monitoring implementation of Integrity Pact in the Company. During the Financial Year 2023-24, the IEMs monitored 162 contracts 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 Board''s 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, Kolkata 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 cooperation 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, 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, Company''s 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/-

Cmde Hari P R, IN (Retd.)

Place: Kolkata Chairman & Managing Director

Dated: Aug, 2024 DIN: 08591411

---

Mar 31, 2023

FINANCIAL PERFORMANCE

The financial performance of your Company has been the best ever during the financial year 2022-23. During the year, the Company has registered an improvement in Revenue from Operation by 46% by registering ''2,561.15 crore against ''1,754.45 crore in the previous year. During the year, the Company has also registered growth in EBIDTA and PAT by 19% and 20%, respectively.

The financial highlights for the financial 2022-23 and 2021-22 are summarized below:

(Rs. in crore)
Particulars	2022-23	2021-22
Value of Production	2,547.84	1,745.28
Revenue from Operation	2,561.15	1754.45
Profit Before Depreciation, Interest and Tax	350.86	294.38
Finance Cost	6.48	1.43
Depreciation	39.17	35.71
Profit Before Exceptional Items & Tax	305.22	264.93
Exceptional Item	-	(7.69)
Profit Before Tax	305.22	257.24
Provision for Tax	77.09	67.71
Profit After Tax	228.12	189.53
Other Comprehensive Income (Net of Tax)	0.54	1.12
Total Comprehensive Income	228.67	190.65
The financial position of your Company as on 31 March 2023 and 31 March 2022 is appended below: ('' in crore)
Particular	As on 31 March 23	As on 31 March 22
Capital Employed	1,413.82	1,257.89
Gross Block	729.70	687.03
Net Block	507.61	500.65
Working Capital	654.25	569.04
Net Worth	1,413.82	1,257.89
Value Added	953.81	810.88
Value of Production	2,547.84	1,745.28
Profit Before Exceptional Items & Tax	305.22	264.93
Exceptional Item	-	(7.69)
Profit Before Tax	305.22	257.24

Particular	As on 31 March 23	As on 31 March 22
Ratios: (%)
Profit before interest and tax: Capital Employed (%)	21.81	20.33
Profit after tax: Net Worth (%)	16.14	15.07
Gross Profit: Capital Employed (%)	24.55	23.14
Profit Before Tax: Value of Production (%)	11.98	14.74
Value of Production: Capital Employed (%)	178.27	137.17
Ratios	FY - 23	FY - 22
Current Ratio (In times)	1.07	0.93
Return on Equity (%)	17.08%	15.83%
Trade Receivables Turnover Ratio (In times)	25.33	10.65
Trade Payable Turnover Ratio (In times)	4.19	2.20
Return on Capital Employed (%)	21.81%	20.33%

Value of Production

Your company has achieved the highest ever Value of Production (''VoP'') of ''2,547.84 crore as against ''1,745.28 crore during the previous year. The comparative VoP for the three Divisions of the Company are as follows:

('' in crore)
Year	Ship Division	Engineering Division	Engine Division	Misc.	Total
2022-23	2,454.89	69.82	22.97	0.16	2,547.84
2021-22	1,620.16	70.32	54.27	0.53	1,745.28

Net Worth

During the year under review, your Company has reported Net worth of ''1,413.82 crore as on 31 March 2023 against ''1,257.89 crore as reported on 31 March 2022.

Value Addition

The Value added during the financial year under review was ''953.81 crore as against ''810.88 crore during the previous year. The Value added per employee was ''54.60 lakh as compared to ''45.30 lakh during the previous year.

Appropriations

Considering the financial performance of your Company in the year 2022-23, the Board of Directors are pleased to recommend the following appropriations from the disposable surplus:

('' in crore)
Profit After Tax	228.12
Other Comprehensive income for the year, Net of Tax	0.54
Total Comprehensive income for the period	228.67
Less:
Final Dividend of FY 2021-22 on the Paid-up Capital	9.74
Interim Dividend of FY 2022-23	63.00
Balance retained in Statement of Profit & Loss	155.93

Contribution to Exchequer

Your Company has made a contribution of ''79.98 crore to the National Exchequer during the financial year 2022-23 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 top one thousand listed entities shall formulate a Dividend Distribution Policy. Accordingly, the Board of Directors of the Company has 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 Company''s 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 10 February 2023, your Company has paid an interim dividend of ''5.50/- per equity share of face value of ''10/- each to Shareholders who were on the Register of Members as on 20 February 2023, being the record date fixed for this purpose. Further, the Board, at its meeting held on 24 May 2023 has recommended a dividend of ''0.70/- per equity share of face value of ''10/- each for the financial year 2022-23. Thus, the total dividend for the financial year 2022-23, if approved by the Shareholders, would be ''6.20/- per equity share.

MOU Rating

Your Company has been rated "Very Good" with a score of 85.44 out of 100 as per MoU Evaluation for FY 2021-22 by the Department of Public Enterprises. This is a remarkable achievement as GRSE is one of the two DPSU Shipyard to attain ''Very Good'' rating. Further, on the basis of actual achievements vis-a-vis parameters laid down in the MoU signed with the Government of India, your Company is expected to be rated "Excellent" for its performance during the FY 2022-23.

SHIPBUILDING

The Company has achieved a total shipbuilding income of ''2,454.89 crore during 2022-23 as against ''1,620.16 crore in 2021-22. During the year, One Fast Patrol Vessel for Indian Coast Guard, built and delivered by GRSE on 31 Dec 2022, and the same was also commissioned on 12 Jan 2023. Further, the details of vessels under construction in your Company as on 31 Mar 2023 are as follows:

Project / Vessel Type	No. of Vessels
Project P-17A for Indian Navy	03
Survey Vessel (Large) for Indian Navy	04
ASW-SWC for Indian Navy	08
NG OPV for Indian Navy	04
Total Ships	19
Patrol Boats for Govt. of Bangladesh	6
NG Ferry for Govt of West Bengal	1

The Shipyard has also completed construction of an Ocean-Going Cargo cum Passenger Vessel for the Govt. of Co-operative Republic of Guyana (South America). The vessel was transported from GRSE to Georgetown, Guyana and commissioned on 23 Apr 2023 in the august presence of HE Dr Mohammad Irfan Ali, Hon''ble President Cooperative Republic of Guyana, Brigadier (Retd.) Mark Anthony Phillips, Prime Minister, Cooperative Republic of Guyana, Dr. S Jaishankar, External Affairs Minister of India and several cabinet ministers of the Cooperative Republic of Guyana.

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

Commissioning
Sl. No.	Ship	Yard	Date
(a)	Fast Patrol Vessel for ICG	2118	12 Jan 2023
Delivery
Sl. No.	Ship	Yard	Date
(a)	Ocean-Going Cargo cum Passenger Vessel for Guyana	2119	15 Dec 2022
(b)	Fast Patrol Vessel for ICG	2118	31 Dec 2022
Launching
Sl. No.	Ship	Yard	Date
(a) 2nd Survey Vessel Large		3026	26 May 2022
(b) 2nd Project P-17A		3023	15 Jul 2022
(c) 3rd Survey Vessel Large		3027	26 Nov 2022
(d) 1st Anti-Submarine Warfare		3029	20 Dec 2022
Shallow Water Craft (ASW SWC)
(e) 2nd Anti-Submarine Warfare		3035	21 Mar 2023
Shallow Water Craft (ASW SWC)

Keel Laying
Sl. No.	Ship	Yard	Date
(a)	3rd Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3030	17 Jun 2022
(b)	6th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3031	17 Jun 2022
(c)	4th Survey Vessel Large	3028	17 Jun 2022
(d)	4th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3033	31 Dec 2022
(e)	5th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3036	31 Dec 2022
(f)	Next Generation Electric Ferry	2120	19 Jan 2023
Start Production
Sl. No.	Ship	Yard	Date
(a)	4th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3033	01 Jul 2022
(b)	7th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3032	27 Oct 2022
(c)	5th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3036	01 Nov 2022
Contract signed CONTRACT SIGNED
Sl. No.	Ship	Yard	Date
(a)	04 Nos. Next Generation Offshore Patrol Vessels (NGOPV)	3037-40	30 Mar 2023

SHIP REPAIR

The Ship Repair Division of your Company has effectively utilised all the three dry-docks taken from Shyama Prasad Mukherjee Port, Kolkata and successfully completed docking of 15 ships during the Financial Year 2022-23. Further, the Division has also completed refits of 04 ships (ICGS Sujay, ICGS Priyadarshini, River Pearl-4 & River Pearl-1) at a total value of '' 27.65 crore.

ENGINEERING DIVISION

The Value of Production (VoP) achieved by the Engineering Division during the financial year 2022-23 amounted to '' 69.82 crore.

Portable Steel Bridge Unit

The Value of Production achieved by the Bailey Bridge unit during the financial year 2022-23 amounted to '' 69.30 crore [consisting of (78) Bridges, 5850 MT] as against '' 59.35 crore [consisting of (70) Bridges, 5400 MT] during the previous year. The Company has also exported two Bridges to Bhutan during 2022-23.

During the year, your Company has delivered and launched 01 No. of 160 ft. Single Lane Modular Steel Bridge and 1 No. of 90 ft. Single Lane Modular Steel Bridge (MSB) in Arunachal Pradesh under Project Arunank (BRO) despite inclement weather conditions. This major achievement helped to restore critical geo-connectivity around the region.

ORDER BOOK POSITION
The total order book position of your Company for the three (3) divisions as on 31 Mar 2023 is as follows:
			('' in crore)
	Sl. No.	DIVISION / DEPTS	Closing order Value as on 31 Mar 2023
A		Ship Division
		Ship (including B&D Spares)	24,804.49
		Ship Repair & AMCs	52.30
		Total Ship Division	24,856.79
B		Engineering Division
		Bailey Bridge	74.78
		Deck Machinery	58.95
		Total Engineering Division	133.73
C		Engine Division	120.77
		Total (A B C)	25,111.29

Your Company has also been successful in delivering 11 sets of Double Lane MSB to BRO under the MoU with DGBR (BRO) for supply and launching of 30 sets of Double Lane MSBs. It is noteworthy to record that GRSE has successfully launched of 02 Nos. of 60 ft. and 02 Nos. 50 ft. Double Lane MSBs and 2 Nos of Single Lane Modular Bridges in the span of 70 feet & 80 feet under Project Brahmank.

Bailey Bridge unit also received an export supply order from DGDP/ Bangladesh Army under DLOC of Govt. of India for supply of 07 Nos of 80 feet Modular Steel Bridges of contract value of '' 8.98 crore.

Your Company is the only Indian organisation that has been conferred with the coveted ''Green Channel Status'' for "Design and Supply of Bailey Bridges and Bailey Suspension Bridges" to Indian Army / Border Road Organisation (BRO) as per Indian Defence Specifications.

Deck Machinery Unit

Deck Machinery Unit of your Company is engaged in manufacturing and supply of various Deck Machinery equipment (Anchor Capstan, Anchor Windlass, Mooring Capstan, Dock Capstan, General Purpose Davits, Ammunition Davit, Electric Boat Davits, Electro-Hydraulic Boat Davits, Survey Motor Boat Davits, Hydrographic Davits, Oceanographic Winch, Anchor cum General Purpose Winches for beaching operations, Helo Traversing System (Both Rail based and Rail Less type) etc).

During FY 2022-23, the total Value of Production of the Deck Machinery Unit is '' 0.52 crore.

During FY 2022-23, total thirty-four (34) Nos. of different Deck Machinery equipment have been supplied to various new construction yards as well as to operational ships of Indian Navy. In

this regard, it is worthy to mention that indigenization of Telescopic Helicopter Hangar and 3T Telescopic Deck Crane with maximum reach of 13M for Survey Vessel Large (SVL) project has been completed successfully.

ENGINE DIVISION

The Diesel Engine Plant (DEP) of your Company at Ranchi has successfully completed the Factory Acceptance Trials and delivery of five (5) 1 MW DAs of the P17A Project during this year. It is also pertinent to state that the Unit has also completed Type test of these DAs including the "tilt test" which is a major milestone and undertaken for the first time in India for a DA of this capacity.

The division has achieved Value of Production of '' 22.97 crore during the financial year 2022-23.

DEP Ranchi has also delivered three (03) MTU 4000 series engines of Indian Coast Guard post completion of W6 routines and successful Factory Acceptance Trials.

The Bailey Bridge Components are also being produced at DEP unit at Ranchi where Bailey Bridge Division of DEP Ranchi Unit achieved a VoP of approx. '' 16.86 crore during the financial year.

During the year, DEP Ranchi Unit has also signed the Running Rate Contract (RRC) with NSRY (Karwar) for routines which has been won on competitive basis and execution of the job has already been commenced.

NEW INITIATIVES

In order to establish long term business growth and adoption of new technologies, your company has taken up the following major initiatives through signing of MoUs during FY 2022-23:

(a) M/s Rolls-Royce Solutions GmbH (MTU), Germany for License production with localization of the MTU 16V4000M73L engine.

(b) M/s Tunga Aerospace Industries Pvt. Ltd., Chennai for Design, development, testing, series production and after sales service of products requiring advanced technologies in the domain of ship based drones.

(c) IIT, Kharagpur to effectively leverage competence & strength in warship construction / Ship Design/ Naval Architecture

by undertaking process improvement using Industry 4.0, AI / ML to pursue & optimise new State of the Art Warship Construction.

(d) In order to increase Ship Repair Associates of GRSE and thereby enhance business from Ship Repair / Ship Refit and allied activities at GRSE / GRSE-KPDD / elsewhere in India, separate MoUs were signed by GRSE with 7 (seven) firms.

(e) Alliance for indigenized design, production, supply and maintenance of FRO/GRP boats established with separate MoUs with (a) M/s Elite Polymer, Howrah, West Bengal and (b) M/s RAADS Marine, Muthialpet, Puducherry.

(f) Indian Register of Shipping (IRS), Mumbai for Effectively leverage competence and strengths in Quality Inspection Services as well as Assistance in Quality Inspection Services and other technical studies during Refits/ Repairs of Naval & Coast Guard Ships/ Crafts and Merchant Ships/ Crafts.

(g) For Collaboration in design for warship construction - (i) M/s Gibbs and Cox, USA and (ii) Naval Group SA, France.

(h) For Portable Pre-Fabricated Steel Bridges, MoU has been signed with CSIR - Structural Engineering Research Centre (SERC), Chennai for Analysis, Design Checking & Testing of Modular/ Girder/ Permanent Steel Bridges and Health Monitoring of Bridges and with M/s Vrinda Engineers Pvt Ltd, Kolkata for Technical and Marketing collaboration for manufacture and supply of Large Span Steel Bridges.

(i) M/s. Indian Armour Systems Pvt. Ltd. (IAS), Haryana for exploring ''Export Opportunities'' in the field of armour for boats in overseas territory.

(j) Kerala Electrical & Allied Engineering Co. Ltd. (KEL), Kochi,

Kerala (a state-owned Enterprise of Kerala) to associate/ collaborate in design & development and supply of various products to GRSE as per need.

(k) Supply Agreement with M/s. Indian Oil Corporation Ltd. (IOCL), Kolkata for oil & lubricants

(l) Steel Authority of India (SAIL) for supply of Non DMR Steel Structural.

(m) M/s Rekise Marine Pvt. Ltd., Hyderabad to jointly conduct R&D in connection with unmanned surface vessels and jointly pursue and execute contracts for the same.

(n) M/s Aerospace Engineers Pvt Ltd., (AEPL), Salem, Tamilnadu for Design, development, testing, series production and after sales service of products requiring advanced technologies in the domain of Autonomous Underwater vehicles and allied systems.

(o) M/s KELTRON, India to jointly develop sensors required for AUVs, explore possibilities of using Noise Anomaly detectors & noise ranging equipment in shipbuilding project for technology development to aide future business.

(p) M/s CIFT, India for Design, engineering, construction and supply of Deep sea fishing vessels/ Boats of medium to large size.

(q) M/s Damien, Netherlands for cooperation in commercial shipbuilding.

(r) M/s Dynatron for undertaking ship repair/ refit and allied activities at GRSE/ GRSE-KPDD/ elsewhere in India.

(s) M/s KONGSBERG, Sweden for license production with localization of the ''Kongsberg'' waterjet in India.

RESEARCH & DEVELOPMENT

Next Generation Electric Ferry: Your Company has developed the design for a full electric battery operated ferry for transportation of passengers in the inland waters. This 24m long Catamaran Hull aluminium vessel with FRP superstructure shall have a max speed of 8 Knots and a capacity of carrying 145 passengers. This will be pioneering effort in promoting Green technologies in the Inland Water transportation sector in the country. This is a step towards replacing diesel ferries and reduce environmental pollution. The Company is now building a vessel for Government of West Bengal as a pilot project.

Unmanned Surface Vessel (USV): Your Company has developed a 5m USV prototype called ''SWADHEEN''. The potential roles of the USV are bathymetric survey and mine-hunting. The remote-control capabilities have been successfully demonstrated, and the prototype is being enhanced further with collision avoidance capabilities with required payloads for defined potential roles. Demonstration of autonomous operations shall enable the fructification of order from Indian Navy, Coast Guard and DRDO, where they have already issued RFI''s which are of similar requirements of the prototype being developed.

Autonomous Underwater Vehicle (AUV): GRSE has developed an Autonomous Underwater Vehicle of length 2.15m for Mine Counter Measure operations, Reusable ASW training target, and passive acoustic monitoring. Integration of payloads under progress. GRSE intends to demonstrate the prototype to potential customers.

MAKE IN INDIA INITIATIVES

Your Company has implemented the "Make in India and Indigenisation" Policy whereby indigenous vendors are encouraged to quote with maximum indigenisation content through Licensed production with collaboration, Licensed production by way of Transfer of Technology (ToT), Co-production, Assembling, Design and Manufacture in India with ToT. Your Company has developed in-house capabilities to design & build most modern warships in the country and has achieved over 90% indigenisation for Landing Craft Utility Ships and over 85% indigenisation for Anti-Submarine Warfare Corvettes, which is a major step towards achieving self-reliance in state-of-the-art warship design and construction.

Ministry of Defence through DDP-MoD has notified three positive lists (03 PILs) of items for DPSUs, for which there would be an embargo on the import beyond the timeline indicated against them. Further, Ministry of Defence through Department of Military Affairs (DMA-MoD) has notified four positive lists (04 PILs) of items required for

Armed Forces. This initiative offers a great opportunity to the Indian defence industry to manufacture these items using own design and development capabilities to meet the requirements of the Armed Forces. GRSE has identified total 34 items from the DDP-MoD list and 24 items from DMA-MoD lists. GRSE has already indigenised 24 items out of 34 items specified in three PILs promulgated by DDP-MoD.

GRSE has uploaded 70 items in the SRIJAN Defence Portal (srijandefence.gov.in) launched by the GoI on 14 Aug 2020. These items were earlier imported or indigenous vendors not available, and as on date, GRSE has successfully indigenized 27 items from this list.

The Make-II framework (Industry funded prototype development) was implemented at GRSE on 09 Jul 22. As on date, GRSE has 4 items identified under Make-II project and these items are at various stages of development process.

Your Company has also a comprehensive ''5 Year Indigenisation Plan'' (FY 2019-20 to FY 2023-24) for developing equipment that are primarily project specific and are also planned for incorporation & utilization for various upcoming projects. Since FY 2013-14, GRSE has indigenized 27 items worth ''216.74 crore. Another 12 items worth ''535.20 crore (approx.) have been planned to be Indigenised by FY 2024-25.

Self-reliance in defence manufacturing is a crucial component of effective defence capability to maintain national sovereignty and achieve military superiority. As a part of these initiatives, a framework, the "Mission Raksha Gyan Shakti" 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 133 IPRs (129 IPRs post MRGS launching) out of which 44 IPRs are granted (03 Patents) / registered (38 Copyrights & 03 Trademarks) as on date. GRSE trained around 1305 personnel (own employees as well as vendors personnel) with an objective to imbibe Technology and Innovation Driven work culture. Further, to promote and encourage employees towards innovation "Employee Innovation Scheme" has been promulgated at the company level in Jan 2019 which includes monetary and career encouragement benefits.

Since launching of ''Make-in-India'' programme by GoI in Sep 2014, GRSE has constructed and delivered 22 Warships to the Indian Armed Forces and Friendly Foreign Countries.

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.

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.

GRSE regularly supplies Portable Steel Bailey Bridges and its components to the neighbouring countries such as Nepal, Bhutan & Bangladesh. Efforts are on to further enhance the export of Bailey Bridges & their components to other friendly foreign countries as well.

During FY 2022-23, your Company has generated revenue of '' 59.78 crore from export orders which includes '' 58.49 crore from Shipbuilding and '' 1.29 crore from the Bailey Bridges.

Your Company is presently executing the following Export Orders:

(a) Supply of 06 Patrol/ Surveillance Boats for Govt. of Bangladesh for a value of 1.82 Million USD.

(b) Maintenance/ Afloat Support for 03 years for one Fast Patrol Vessel of the Govt. of Seychelles which was constructed and delivered to Govt. of Seychelles by your Company.

(c) 07 Nos. Single Lane Pre-Fabricated Portable Steel Bridges of '' 8.92 crore for Bangladesh Army through DLoC

INFRASTRUCTURE AND TECHNOLOGICAL MODERNIZATION

Your Company has been continuously modernising its infrastructure/ facilities to be in tune with the changing needs of the technology/ products. During the year 2022-23, the Company has spent '' 43 crore as a part of CAPEX investment towards modernisation of Infrastructure, Technology, Plant & Machinery etc.

The following are some of the major facilities modernised during the year:

(a) Upgradation of Fitting Out Jetty (FOJ) Unit - Towards enhancing production capability at at FOJ, following actions have been taken: -

(i) Refurbishment of Jetties - Both the Finger Jetty &

Naval Jetty has been refurbished including structural strengthening and replacement of old Fenders & Bollards.

(ii) Refurbishment of Shops & Stores - All major Shops & Stores at FOJ has been refurbished in terms of replacing

old asbestos sheet with metal sheet, structural retrofitting/ strengthening work & allied jobs.

(iii) Installation of new Flanging Machine - To enhance productivity of pipes, a new Flanging Machine has been installed at Pipe Shop of FOJ.

(iv) Also, refurbishment of age old 02 Nos. Jib Cranes at both the Jetties is currently underway, which will be completed by 20 September 2023.

(b) Retrofitting of old shipbuilding Docks & Berths at Main & RBD Unit - Retrofitting & structural refurbishment/repair of old Dry Dock & Inclined Berth of Main and also old Dry Dock of RBD has been completed.

(c) Commissioning of 04 nos. of 25 Ton capacity EOT Cranes

at RBD - For enhancement of Shipyards'' block fabrication capacity, 02 nos. of 25 Ton capacity EOT cranes, each at two nos. Block Fabrication Shops has been commissioned.

(d) Rooftop Solar Plant - As a part of green energy initiative for reducing the impact of atmospheric climate change, total 450 KWp roof top solar power plant (200 KWp at Main & 250 KWp at FOJ) has been commissioned in this year. With this, the total capacity of rooftop solar plant at GRSE is now 1950 KW i.e.

1.95 MW.

(e) 3D Printed Modular Building - In line with the Government of India''s thrust towards latest technology and also Start Up India Mission, a Modular Building using 3D Printing technology (concrete) by a start-up company has been created at RBD Unit.

(f) Cherry Picker with Articulated Boom - For faster ship construction outfitting work, a new Cherry Picker with Articulated Boom has been procured & installed.

FUTURE OUTLOOK

A strong order book for design and construction of 19 warships concurrently for Indian Navy at this juncture holds exciting times ahead for the GRSE. With all the policy initiatives taken by the Government of India in the recent times for encouraging & supporting ''Atmanirbharata'', 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 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. Further, the MoD plan to increase export of defence products to 3.59 Billion USD by end of 2024-25 augurs well for all of us. GRSE also plans to enter in to the highly competitive commercial shipbuilding segment in order to address the domestic as well as global demands for ships. Thus, your company has identified Ocean going Ferry (Cargo Passenger), Tugs, Dredger, Barges, E-Ferry as targeted nondefence products to promote in Export Market of Friendly Foreign Countries (FFCs).

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 adapt Industry 4.0 practises in its core areas of functioning such as ''Design'', ''Planning'', ''Production'' and ''Supply Chain Management''.

GRSE has strengthened its green energy footprint with inauguration of a 250 kWP Rooftop Solar Power Plant at FOJ Unit. This is the second plant to be commissioned in a span of 04 months. The total capacity of rooftop solar plants at GRSE is now 1950 KWP. GRSE has plans to further enhance the solar power plant capacity as part of its Green initiatives.

GRSE was awarded the order for design, construction & delivery of 01 No. Zero emission Next Generation Electric Ferry by Govt. of West Bengal on 05 July 2022. The ferry is planned to be delivered in FY 2023-24. The newly formed "Innovation & New Technology" department at GRSE is also working on several projects incorporating new technologies.

GRSE has a glorious past and the company''s credentials and achievements are unmatched in the Indian Warship building arena. GRSE presently has a world class infrastructure and amongst the best talent that is needed to scale newer heights in shipbuilding.

Presently, the company is at the cusp of transformation to embark upon an unprecedented growth trajectory. This entails a mindset change, coupled with efficient project management, strategic partnerships, new technology adaptation and most importantly effective management of resources. GRSE has set its aspirations on "Upgradation as a "Navaratna" Company by 2030 and be Globally recognized as the Best Indian Shipyard".

Your Company''s 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.

(b) 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.

(c) 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, Inland Waterways Authority of India, Kochi Water Metro, Government of West Bengal and other State Governments over the next 05 Years.

(d) Your Company is targeting orders from the Indian Navy, Indian Coast Guard and Ministry of Home Affairs for AMC & Refits

of GRSE built vessels, and has plans to further strengthen and expand the refit & repair business verticals.

(e) Towards diversification, growth of the Engineering and Engine business segments is also being aggressively pursued.

VENDOR DEVELOPMENT

VENDOR DEVELOPMENT WITH IMPETUS TO MICRO, SMALL AND MEDIUM ENTERPRISES

Our vendor base has played a pivotal role in achieving sustainable growth of GRSE and your company is in constant endeavour to strengthen the MSME footprints in different aspect of business growth through various vendor meets, seminars, webinars, etc. organized by various important fora like CII, BCCI, MSME, etc. In the post pandemic chapter too, webinars are being continued to be leveraged for identifying capable entrepreneurs to the GRSE fold.

In post Covid19 scenario, when resurgence with time was a real challenge throughout the world, GRSE has continued their production excellency with the delivery of warships within a very short interval. It was only possible when the organization is equipped with world class commercial and best industrial practises and a robust vendor base. The close monitoring of the major vendor''s performance, introduction of vendor grievance redressal system, online performance rating system for the vendors are the other major verticals of such performance. Further, the development of online vendor registration for new vendor has been undertaken in order to improve ease of registration process and minimise the registration cycle time.

In order to develop vendor base, your Company is in constant search for competent vendors including MSMEs through organizing & participating in various Vendor Meets, Seminars, Webinars, etc., organized by various important fora like; BCC (BHARAT CHAMBER OF COMMERCE), MSME-DFO (MSME-Development & Facilitation Office), NSIC-NSSHO (National Small Industries Corporation-National SC ST Hub office), EEPC (Engineering Export Promotion Council of India), MCCI (Merchants'' Chamber of Commerce & Industry), SIDBI (SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA).

In addition to above, your Company has also participated in "National MSME Conclave and Exhibition in Defence Sector", at Kota, Rajasthan and a highlighted participation in "DEFEXPO-2022" in Gandhinagar, Gujarat to explore technically competent firms and seek advantage of their services for GRSE''s ongoing / future projects to realise the "Make in India" endeavour of the nation.

As a special initiative, your Company had organised an event, "Melbandhan 2022" - A delightful meet with Business Partners for detailed interaction with stakeholders. The program was participated by several business partners making it a grand success.

Your company has made significant improvement in production with effective execution of contract management on the outsourced jobs, engagement of good capable service & supply vendor, maintaining proper vendor relation and monitoring vendor performance.

Your Company has been providing increased thrust on enhancing procurement from Micro and Small Enterprises (MSEs) and has strictly adhered the restriction/preference on MSME vendors wherever applicable in line with MSMED Act, and same are being strictly followed and monitored closely.

Your Company extends technical guidance and requisite support to these industries wherever required by regularly conducting MSE Vendor Development programmes in association with CII and MSME Ministry, Government of West Bengal. In order to meet the requisite quality standard of the product, our quality control personnel are visiting these industries to assist them.

During the financial year 2022-23, your Company procured items worth '' 564.11 crore from the MSEs, which is 62.64% (approx.) of the total annual procurement value (considering exclusions as applicable for MSEs). The list of items reserved for MSEs procurement is available on your Company''s website at https://grse.in/policies-for-msme/.

Your company is continuously increasing the permanent vendor base after due assessment as per laid down company policy & procedure abiding directive of MSME Public Procurement Policy.

Being a DPSU, your Company has on-boarded on TReDS Platform and MSME Sambandh & MSME Samadhaan Portals complying with Government guidelines/ directives.

GOVERNMENT e-MARKETPLACE (GeM)

Since inception of the Government e-Market (GeM) (from 2017),

Your company has consistently achieved a highest procurement volume on GeM amongst all the shipyards.

During the financial year 2022-23, your Company has recorded GeM procurement volume of '' 524.07 crore, which is highest ever amongst all the shipyards.

ERP & IT

Your Company is giving thrust to SAP implementation and IT initiatives all across its activities. The highlights in the area of ERP & IT are as follows:

(a) IT Infrastructure: Your Company has well established on premise Data Centre (DC) in Kolkata and Disaster Recovery Centre (DR) at Mumbai. All its local and remote locations are connected through dedicated leased lines and LAN for seamless data transfer and communication. GRSE has already mapped major business processes like Supply Chain, Finance, HR, Payroll, Vendor, Plant Maintenance etc. in SAP ERP in 2010. Total Design Operations are covered under secured IT Platform with AVEVA CAD, VR LAB, PDM-PLM etc.

(b) Cyber Security: Your Company has a well defined organisational structure for Cyber Security Management. Director (Personnel) is nominated as the Chief Information Security Officer (CISO) for the Company. Cyber Security Enhanced Awareness Training by CDAC has been imparted to cyber security core group. AIR-GAP implementation across organization and ILL based internet LAN was also implemented in all its units.

(c) ERP-SAP: GRSE has adopted a centralised approach to manage critical IT infrastructure on which all business processes are dependent. It includes ERP infrastructure, mail servers, WAN,

LAN, network security components, antivirus and patch management. Further, ERP/SAP core team has also been revitalized.

(d) PDM / PLM (Product Data Management / Product Lifecycle Management): Implementation of AVEVA Marine based

PDM & Siemens Team Centre based PLM software is under implementation. Modular construction technology with the use of PDM / PLM will improve efficiency and reduction of construction time of P17A ships.

(e) Work From Home: Secured VPN (Virtual Private Network) facilities are provided to nominated users for "Work From Home" and seamless high-end device based VC (Video Conferencing) being utilized for Video Conferencing with Internal, Ministry and External stakeholders''.

(f) Access Control System: GRSE has already migrated from finger print based system to Face Recognition Based Biometric Access Control System for both permanent as well as contractual employees.

(g) Employee Portal: Employee Portal has been revamped to cover various online modules like PMS (Performance Management System), e-Note Sheet, e-File Tracking, Employee Survey, Asset Tracking, Production Monitoring, QMS, Attendance, Visitor Management System, Employee document like Salary slip, PF-Pension-Tax etc.

Manpower

The total Manpower strength under permanent roll of the Company as on 31 Mar 2023 was 1,747 including 481 Board level & below Board level Officers on regular roll, 09 Officers and 69 Supervisors on Fixed Term contract.

The Statements showing the representation of SC/ ST/ OBC / PWD / Women, etc., as on 31 Dec 2022 as well as the total recruitment made during the period from Jan to Dec 2022 are given at Appendices "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 under review across all Units of the Company including DEP, Ranchi remained more or less peaceful

(i) Signing of Memorandum of Settlement (MoS) with GRW Mazdoor & Staff Union :

Memorandum of Settlement on wages and other benefits for operative category of employees of Main and other Units / Offices of GRSE except DEP Ranchi has been signed on 29 Apr 2022 for 10 years periodicity with effect from 01 Jan 2017 to 31 Dec 2026, thereby resolving all outstanding issues relating to pay and allowances of operative category of employees.

(ii) Signing of Supplementary Memorandum of Settlement with GRW Ltd. Clerks'' Union & Unionized employees of DEP Ranchi:

GRSE Management had signed 10 years MoS with GRW Ltd. Clerks'' Union for the Office Assistant category of employees of WB based Units on 25 Mar 21 and with Unionized category of employees of DEP, Ranchi on 03 Jul 21. The Management signed supplementary Memorandum of Settlements effective from 01.01.2017 with GRW Ltd. Clerks'' Union on 26 Sep 22 for the Office Assistant category of employees of WB based Units and with Unionized employees of DEP, Ranchi on 29 Sep 22 to ensure uniformity in various benefits & allowances in Memorandum of Settlement of all Unionized categories of employees.

Human Resource Development

Your Company is nurturing and developing a well-balanced workforce of talented individuals who can contribute towards enhancing organization''s growth trajectory. 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 2022-23, your company has prepared and implemented a well-defined Annual Training Plan covering technical, leadership, managerial effectiveness, functional, cross-functional and behavioural competencies development topics for all categories of employees. During the year, 3640 training man-days were achieved through various training programmes. Training programmes were conducted through online mode by nominating participants in various online workshops/conferences/webinars organized by external agencies/training providers in India. In-house training programmes were also conducted by inviting faculty/ trainers from reputed institutions/agencies.

Employee Engagement Initiatives

(A) GRSE DAY CELEBRATION:

The 64^th GRSE Day was celebrated on 19 Apr 2023. ''GRSE Shri'' and ''CMD''s Commendation'' were conferred to employees for their outstanding performance in 2022. GRSE Merit Awards were given to the employees'' children who excelled in their academic performance in 2021-22. ''GRSE Varta 2023'', an Annual In-House Journal was released on this occasion. Employees and their children staged cultural programme.

(B) CELEBRATION OF GRSE FAMILY DAY "AHOBAN''

GRSE organized a day filled with joy and gaiety for recreation of the entire GRSE family on 29 Jan 23 with planned events for each and every family member of GRSE

(C) CELEBRATION OF INTERNATIONAL WOMEN''S DAY ''VANITA -2023''

To celebrate International Women''s Day in a creative and thoughtful manner, a day-out programme filled with fun and frolic was organized for all the female employees of the company on 05 April 2023. The programme comprised of various activities and scintillating cultural performances by employees.

(E) LEADERSHIP DEVELOPMENT PROGRAMMES

(i) Masterclass for Directors'' Certification Course was conducted for officers in Senior Management Level. It aimed to enhance the understanding of best practices in the boardroom, key elements of corporate governance, the board and management accountability to shareholders.

(ii) Mid-Career Training Program on Leading and Managing in the 21^st Century was conducted for Managers and Senior Managers coming in the zone of promotion.

(iii) Management Development Programmes were conducted for newly inducted Assistant Managers & Supervisors.

(F) GENERAL AWARENESS ASSESSMENT TEST (GAAT)

''General Awareness Assessment Test (GAAT)'' for officers (upto the level of AGM) was conducted on 02 June 2022 at various centers of Kolkata as well as at GRSE regional offices. A large number of Officers were participated in the test.

The aim of this assessment is to ensure the clear understanding of the Officers not only in their respective fields of work but also the role & functions of all the departments, general awareness of Company, the prevalent policies / laws governing the functioning of Shipyard,

Gol guidelines, CDA rules etc. Such awareness can ensure better performance of the Officers and help in grooming them towards taking on higher positions and greater responsibilities.

(G) CAREER ADVANCEMENT SCHEME FOR NON-EXECUTIVE CATEGORY OF EMPLOYEES

Internal induction was conducted for career upgradation of deserving employees of GRSE from non-executive category working in permanent roll of the company under ''Abhyudaya Scheme for Career Advancement of Non-Executives Category of Employees'' in 2022. As per the scheme, selection process consists of knowledge test, skill test and personal interview.

(H) APPRENTICESHIP TRAINING UNDER APPRENTICES ACT, 1963:

The company has trained 246 apprentices during FY 202223. Apprentices were engaged under Trade Apprentice, Graduate Apprentice and Technician Apprentice categories and their total strength was approx. 14% of total manpower strength. The company has a dedicated Apprentice Training Department named Technical Training Centre for conducting Apprenticeship training. 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.

Your Company Celebrated Azadi Ka Amrit Mahotsav (India@75-AKAM) during FY 2022-23 with following events:

(i) Phase V - IX celebrations comprising various webinars and reach out programmes.

(ii) GRSE participated in AKAM Mega Show 2022 - "Nation Building and CPSEs" organised by Department of Public Enterprise (DPE) from 09 to 12 June 22 at Gandhinagar, Gujarat to promote "Contribution of CPSEs in Nation building since Independence" through an exhibition.

(iii) As a part of ''Special Campaign 2.0'' by MoD, GRSE conducted Cleanliness Drive at various locations including all of its units from 02 to 31 Oct 22.

(iv) Swachhta Pakhwada 22 was celebrated in GRSE in a befitting manner from 01 to 15 Dec 22.

PERSONS WITH DISABILITIES (PWD)

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

EMPOWERMENT OF WOMEN

The women representation is 5.2% of the total strength in the Company at the end of the 2022-23. During 2022-23, 05 lady employees have been appointed out of 75 new appointed employees, which is 6.7%.

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 2.43 during the year 2022-23.

In order to maintain high safety standard, your Company has imparted system-based Safety Training to the contractor employees through Group Safety Training Kiosk (GSTK), where more than 130 batches 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.

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 30th 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 Armed Guards of 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 2022-23, the Company has achieved the various targets prescribed in the Annual Programme 2022-23 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 was 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) Promoting Official Language outside the Company: Use

of Official Language is not restricted within the four walls of GRSE but is also publicized outside the Company, by conducting Hindi competitions in Schools. Hindi Essay competition was conducted on 08 December 2022 and prizes distributed to best three participants.

(e) Rajbhasha Awards:

(i) Rajbhasha Kirti Puraskar: GRSE has been awarded prestigious Rajbhasha Kirti Puraskar - 2nd Prize for Excellence in Implementation of Official Language in the

company. The Award was received by GRSE from Hon''ble Minister of State, Shri Ajay Kumar Mishra at a ceremony held at Surat, Gujrat on 14 Sep 22.

(ii) 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.

(iii) TOLIC Active Participation Award: Active Participation Award has been awarded to GRSE for the year 2022-23 by Town Official Language Implementation Committee.

(iv) Prizes in Various Inter-PSU Hindi Competitions: Our

GRSE employees have made us proud by winning 06 different prizes in Various Hindi Competitions organized during the year 2022 by different PSUs under the aegis of TOLIC (PSU), Kolkata.

(v) Manager (OL) has been awarded appreciation letter by TOLIC for Excellence in Implementation of Official Language in 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) 12^th ICC PSE Excellence Award 2023 in the categories of "CSR and Sustainability & Corporate Governance" for implementing Swachh Vidyalaya in local Government schools in some of the most densely populated areas of Kolkata and focus of the initiative was for girl students.

(b) ''9^th Governance Now PSU Awards'' for the categories of Communication Outreach, CSR Commitment (Overall), Digital PSU and Reskilling of Employees (Training & Development).

(c) ''Best Enterprise Award 2022'' received at the 33^rd National Meet of Women in Public Sector (WIPS) in recognition of WIPS activities in the company.

(d) ''WSO India Maritime OHS&E Awards 2022'' in the categories of ''Environment Excellence'' and ''Fire Excellence'' that was declared by ''World Safety Organisation''.

(e) GRSE Quality Circle teams participated in the 36^th NCQC 2022 held at Aurangabad and 07 of our teams conferred with ''Par Excellence'' and ''Excellence'' awards.

(f) ICQCC-2022 ''Gold Award''. Gold Award was won by GRSE QC team in the International Convention on QC Circles

(ICQCC-2022) held at Jakarta, Indonesia.

(g) "Quality Leadership Award" for 21-22 by Quality Circle Forum of India on 27 Sep 2022.

(h) PRSI National Award 2022 from the Public Relations Society of India for Best Organisational Efforts, New R&D Efforts in Defence Sector and Outstanding Initiatives for Promoting Medical & Health.

(i) ''Raksha Mantri Award 22'' by the Hon''ble Raksha Mantri Shri Rajnath Singh for excellence in ''Design & Development of Silent Ship for the Indian Navy'' at DefExpo 2022, Gandhinagar. GRSE is the only DPSU shipyard to have received the Raksha Mantri Award 2022. GRSE won this prestigious ''Raksha Anveshan Ratna Award'' under Innovation category for design of stealth platform for the Indian Navy to manage underwater noise at specified level wherein no major expertise was available within India.

(j) "Dun & Bradstreet PSU award for Digital Transformation"

as The Best PSU of FY 2021-22.

(k) Times Ascent EIILM Award as the "Eastern India Best Employer Brand Awards (Shipbuilding Sector)"..

(l) ICC PSE Excellence Award 2021 in the categories of "CSR and Sustainability" & "Corporate Governance".

Your Company is committed to maintain the highest standards of corporate governance in all spheres of business activity carried out by your Company 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, except with respect to the composition of Board of Directors viz. appointment of Independent Directors including a Woman Director. 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, Department of Public Enterprise 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 2022-23.

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 2022-23, 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 Sanjeeb Mohanty	Independent Director	06 Apr 2022	-
(b)	Smt. Darshana Singh	Independent Director	12 Apr 2022	01 Jun 2022
(c)	Cdr. Shantanu Bose, IN (Retd.)	Director (Shipbuilding)	08 Jun 2022	-
(d)	Cmde Hari P R, IN (Retd.)	Director (Personnel)	-	10 Jun 2022
(e)	Cmde Hari P R, IN (Retd.)	Chairman & Managing Director	10Jun 2022	-

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 2022-23, 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 2022-23, a separate meeting of Independent Directors was held on 25 Mar 2023 in which all the Independent Directors were present.

MEETINGS OF THE BOARD

Seven (07) 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 BOARD''S PERFORMANCE

Your Company is a Government of India company under the Ministry of Defence. The Directors of the Company are appointed by the Presidential of India and their remuneration is fixed in accordance with the DPE Guidelines by the Administrative Ministry. The Article 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 period from 01 Apr 2022 to 24 Apr 2022, the said Committee was not constituted due to non-availability of adequate number of Independent Directors on the Board of the Company. However, the Company had proper composition of Audit Committee from 25 Apr 2022 in accordance with Section 177 of the Companies Act, 2013, the DPE Guidelines on Corporate Governance for CPSEs, 2010 and the SEBI Listing Regulations.

For further details, please refer the ''Report on Corporate Governance''.

DIRECTORS'' RESPONSIBILITY STATEMENT

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

(a) In the preparation of the annual accounts for the year ended 31 March, 2023, 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 had 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, 2023 and of the profit of your Company for the year ended on that date;

(c) The Directors had 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 had prepared the Annual Accounts on a ''going concern'' basis;

(e) The Directors had 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 have, under Section 139(5) of the Companies Act,

2013, appointed M/s. Mookherjee, Biswas & Pathak., Chartered Accountants, Kolkata, as the Statutory Auditors of the Company for the financial year 2022-23.

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 202223 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 2022-23 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 2022-23. 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 Secretarial Auditor observed that the Company did not have requisite number of Independent Directors including Woman Independent Director. The Secretarial Auditor also observed that the Audit Committee and HR, Nomination and Remuneration Committee was not constituted from 01 Apr 2022 to 24 Apr 2023 due to inadequate number of Independent Directors in the Board of the Company. However, the Audit Committee and HR, Nomination and Remuneration Committee were reconstituted from 25 Apr 2022.

The Independent Directors of your Company are appointed by the President of India acting through Ministry of Defence, Government of India and such appointment is pending at their end.

The other observations and clarifications made by the Secretarial Auditor in their Secretarial Audit Report are self-explanatory.

Pursuant to the SEBI circular no. CIR/CFD/ CMD1/27/2019 dated February 8, 2019, the Company has obtained an Annual Secretarial

Compliance Report for the year 2022-23 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 2022-23.

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 33 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/wp-content/ uploads/2022/04/Policv-for-Related-Partv-Transactions-GRSE.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 Company''s 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 Company''s website at https://www.grse.in/wp-content/uploads/2022/04/Whistle-Blower-Policy.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 Company''s 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

GRSE has played a major role in supporting socio-economic development of the marginalized segment mainly, residing in the vicinity of its production units through various CSR initiatives. During the last few years, GRSE has created a positive footprint towards sustainable development and made a significant difference in the lives of disadvantaged section of the society through a slew of well throughout CSR initiative.

The CSR Policy of GRSE is in line with the provisions of Companies Act 2013, the Companies (CSR Policy) Amendment Rules 2021 and Govt. guidelines issued from time-to-time.

The focus areas of Company''s CSR initiatives include Health & Nutrition, Education, Skill development, Infrastructure development of educational institutes, cleanliness campaigns under Swachh Bharat Swachh Vidyalaya Mission, mainstreaming differently abled persons and improving the quality of life of the marginalized segment. Thrust was also given for holistic development of underprivileged tribal children in Aspirational Districts as well as promoting various flagship schemes of the Govt. The Annual report on CSR projects and activities undertaken in FY 2022-23 has been annexed as Appendix-"E".

RISK MANAGEMENT

Pursuant to the 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 2022-23 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 Sept 2015 has granted exemption to Defence Public Sector Undertakings.

IMPLEMENTATION OF RTI ACT

In consonance with the provisions of the Right to Information Act, 2005 (the RTI Act), your Company has well-defined mechanism in place to address the provisions of the 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 202223, a net total of 246 number RTI requests through online/offline mode were received to provide ''Information'', while opening balance number from previous year was brought forward as 30 in number.

A total of 263 number of RTI applications were replied to during the year and 1 RTI Application was transferred to other concerned public authority and remaining 12 number of RTI applications were taken as ''carried forward'' to the year 2023-24.

The Quarterly Returns are being uploaded on the CIC''s 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. In compliance with the provision of section 26 of the RTI Act, 2005, an In-house Awareness Programme on RTI Act was conducted during the year 2022-23.

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 19th August 2020 comprising of 7 members for West Bengal based units. A separate Internal Committee is in existence for DEP Unit, Ranchi. The Internal Committee of DEP was reconstituted on 29 Mar 23 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 of 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 - 02 Nos.

(v) Nature of action taken by the employer - NA 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).

Your Company is committed to the resolution of public grievances in an efficient and time bound manner. Upon receipt of public grievances, the matters are being resolved by examination of facts of each case with due diligence by the concerned departments. During the year 2022-23, a total of 18 number of Public Grievances Petitions through online/offline mode were received and no grievance was brought forward as ''opening balance'' from previous year. Total 18 number of Public Grievances were resolved.

VIGILANCE ACTIVITIES

Your Company has a well-established vigilance department headed by 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. The main thrust of the Vigilance Department is to ensure transparency, fairness & probity in all spheres of activities of the Company. Towards this, focus of the department was on Surveillance & Detection as well as punitive & preventive vigilance. To make preventive vigilance function more effective, the Department has given thrust to leverage technology. During the year, many spheres of activities were taken up 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) CTE Type Intensive Examinations were conducted in the FY 2022-23

(b) An awareness cum sensitization program for the senior Management was conducted on the Observations made on the CTE Type Intensive Examinations for year 2022.

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

(i) Awareness / training program on preventive vigilance are conducted for 2 days in every month;

(ii) Scrutiny files were conducted;

(iii) CVC''s Online complaint handling mechanism is liked with GRSE Web Site in addition to the GRSE''s own online Complaint handling system;

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

(v) Displaying Vigilance slogans at Display Board was done;

(vi) Conducted Gram Sabha at Sundarbans, different

awareness activities at nearby school as well as within GRSE Employees and their family members along with prize distribution during VAW 2022 program;

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

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

(e) Scrutiny of 60 % of the Annual Property Returns (APR) have been completed for the Year 2022.

(f) Inputs on the vigilance status/ Clearance of officers below board level were conveyed for around 1000 cases. The inputs on the vigilance profile of the Board level officers were also conveyed as desired by the Ministry.

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

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

(i) ODI for 2023 was finalized. Agreed List was also prepared and shared with the CBI maintaining close liaison with them.

(j) CAG audit Reports were scrutinized.

(k) Sensitive posts have been reviewed and identified.

(l) The following Vigilance Activities have been made and/or continuing online:

(i) Submission of Annual Property Return

(ii) Processing of Vigilance Clearance of employees

(m) Review of the policy for conveying Vigilance Clearance/ Status was done and the same was amended in GRSE Vigilance Clearance Policy.

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 ''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 Shri Bam Bahadur Singh and Shri Pidatala Sridhar, IRS (Retd.) as Independent External Monitors (IEMs) for a period of three years from 26 Dec 2021 for monitoring implementation of Integrity Pact in the Company. During the Financial Year 2022-23, the IEMs monitored 113 contracts 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 Board''s 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, Kolkata 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 cooperation and positive approach of the Warships Production Superintendent and his dedicated team under whose watchful eyes our ships are being built. Also, we thank all classification societies, in particular, IRS & ABS, 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, Company''s 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/-

Cmde Hari P R, IN (Retd.)

Place: Kolkata Chairman & Managing Director

Dated: 21 July, 2023 DIN: 08591411

---

Mar 31, 2022

FINANCIAL PERFORMANCE

Despite the challenges of the COVID-19 pandemic, the performance of your Company has been the best ever in terms of revenue generation during the financial year 2021-22.

In current year, the Company registered an improvement in Revenue from Operation by 54%, registering '' 1,757 crore against '' 1,141 crore in the previous year. During the year, the Company has registered growth in EBIDTA and PAT by 24%.

The summarized operating results for the financial years 2021-22 and 2020-21 are given below:

('' in crore)
Particulars	2021-22	2020-21
Value of Production	1,748.34	1,132.76
Revenue from Operation	1,757.51	1,140.83
Profit Before Depreciation, Interest and Tax	293.71	236.89
Finance Cost	0.76	0.67
Depreciation	35.71	29.09
Profit Before Exceptional Items & Tax	264.93	227.87
Exceptional Item	(7.69)	(20.75)
Profit Before Tax	257.24	207.12
Provision for Tax	67.71	53.65
Profit After Tax	189.53	153.47
Other Comprehensive Income (Net of Tax)	1.12	3.56
Total Comprehensive Income	190.65	157.03
The financial position of your Company as on 31 March 2022 and 31 March 2021 is shown below: ('' in crore)
Particular	As on 31 March 22	As on 31 March 21
Capital Employed	1,257.89	1,137.12
Gross Block	687.03	496.14
Net Block	500.65	340.20
Working Capital	569.65	542.98
Net Worth	1,257.89	1,137.12
Value Added	550.53	466.41
Value of Production	1,748.34	1,132.76
Profit Before Exceptional Items & Tax	264.93	227.87
Exceptional Item	(7.69)	(20.75)
Profit Before Tax	257.24	207.12

Net Worth

During the year under review, your Company has reported Net worth of '' 1,257.89 crore as on 31 March 2022 against '' 1,137.12 crore as reported on 31 March 2021.

Value Addition

The Value added during the financial year under review was '' 550.53 crore as against '' 466.41 crore during the previous year. The Value added per employee was '' 30.76 lakh as compared to '' 24.56 lakh during the previous year.

Contribution to Exchequer

Your Company has made a contribution of '' 47.52 crore to the National Exchequer during the financial year 2021-22 by way of Income Tax and GST.

Particular	As on 31 March 22	As on 31 March 21
Ratios: (%)
Profit before interest and tax :	20.51	18.27
Capital Employed (%)
Profit after tax: Net Worth (%)	15.07	13.50
Gross Profit: Capital Employed (%)	23.34	20.83
Profit Before Tax: Value of Production (%)	14.71	18.28
Value of Production: Capital Employed (%)	138.98	99.62
Ratios	FY - 22	FY -21
Current Ratio (In times)	0.93	0.99
Return on Equity (%)	16 %	14 %
Trade Receivables Turnover Ratio (In times)	10.55	3.20
Trade Payable Turnover Ratio (In times)	2.20	1.24
Return on Capital Employed (%)	20%	18%

Value of Production

During the financial year under review, due to the then emerging second wave of the COVID-19 pandemic and as per Government directives, your Company was affected by lock-downs from mid of May 2021 to mid of June 2021. Despite these interruptions, your company has achieved the highest ever Value of Production (''VoP'') of '' 1,748.34 crore as against '' 1,132.76 crore during the previous year. The comparative VoP for the three Divisions are as follows:

('' in crore)
Year	Ship Division	Engineering Division	Engine Division	Misc.	Total
2021-22	1,620.50	71.83	55.48	0.53	1,748.34
2020-21	1,048.02	66.69	18.05	-	1,132.76

Dividend

Pursuant to Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"), the top one thousand listed entities shall formulate a Dividend Distribution Policy. Accordingly, the Board of Directors of the Company has 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 Company''s website at https://grse.in/wp-content/uploads/2022/04/GRSE-Dividend-Distribution-Policy.pdf.

Appropriations

Considering the financial performance of your Company in the year 2021-22, the Directors are pleased to recommend the following appropriations from the disposable surplus:

('' in crore)
Profit After Tax	189.53
Other Comprehensive income for the year, Net of Tax	1.12
Total Comprehensive income for the period	190.65
Less:
Final Dividend of FY 2020-21 on the Paid-up Capital	13.17
Interim Dividend of FY 2021-22	56.70
Balance retained in Statement of Profit & Loss	120.78

Pursuant to the approval of the Board of Directors on 11 February 2022, your Company has paid an interim dividend of '' 4.95/- per equity share of face value of '' 10/- each to Shareholders who were on the Register of Members as on 18 February 2022, being the record date fixed for this purpose. Further, the Board, at its meeting held on 25 May 2022 has recommended a dividend of '' 0.85/- per equity share of face value of '' 10/- each for the financial year 2021-22. Thus, the total dividend for the financial year 2021-22, if approved by the Shareholders, would be '' 5.80/- per equity share.

IMPACT OF COVID-19 PANDEMIC

The Company was impacted by the second wave of the COVID-19 pandemic during the first Quarter of FY 2021-22, wherein the operations were interrupted from mid of May, 2021. While we resumed operations partially almost after a month with requisite precautions, this has had an adverse effect on the revenue and financial performance of the Company. Management has estimated value of loss of production hours and quantum of non-usage of Plant & Machinery of production shops as '' 709.95 lakh and '' 58.59 lakh (Total '' 768.54 lakh), respectively for the quarter ended 30^th June 2021, and nil in the subsequent quarters of FY 2021-22, and the same has been stated as Exceptional items in the Financial Statement.

MOU RATING

Your Company has been rated "Excellent" with a score of 91.23 out of 100 as per MoU Evaluation for FY 2020-21 approved by the Department of Public Enterprises. This is a remarkable achievement as GRSE is the only shipyard, one of the two DPSUs & one among 22 CPSEs to attain "Excellent" rating for FY 2020-21. This Excellent rating is significant, as the financial year was plagued by Covid-19 pandemic and consequent imposition of 75 days of complete lock down, several associated restrictions hampering production activities and delays in material supply throughout the year. Further, on the basis of actual achievements vis-a-vis parameters laid down in the MoU signed with the Government of India for FY 2021-22, your Company is expected to be rated "Very Good" for its performance during the Financial Year.

SHIPBUILDING

The Company has achieved a total shipbuilding income of '' 1,620.50 crore during 2021-22 as against '' 1,048.02 crore in 2020-21. During the year, SCG PS ''Zoroaster'', the fourth ship in the series of Fast Patrol Vessel (FPV) built by GRSE was commissioned on 08 Apr 2021 at Seychelles by Hon''ble Prime Minister of India Shri Narendra Modi. Further, the details of ships under construction in your Company as on 31 Mar 2022 are as follows:

Project / Vessel Type	No. of Vessels as on 31 Mar 2022
Project P-17A for Indian Navy	03
Survey Vessel (Large) for Indian Navy	04
ASW-SWC for Indian Navy	08
Ocean Going Passenger cum Cargo Ferry for Govt. of Guyana	01
Fast Patrol Vessel for Indian Coast Guard	01
Total Ships	17
Patrol Boats for Govt. of Bangladesh	6

The Shipyard also completed major milestones on various projects including launching, keel laying and start production during the financial year are as follows:

Launching

Sl. No.	Ship Yard		Date
1	1st Survey Vessel (L) 3025	05 Dec 2021
2	2nd Survey Vessel (L) 3026	21	Mar 2022
Keel Laying
Sl. No.	Ship	Yard	Date
1	Fast Patrol Vessel (FPV)	2118	15 Jul 2021
2	3rd Survey Vessel (L)	3027	06 Aug 2021
3	1st Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3029	06 Aug 2021
4	Ocean Going Passenger & Cargo Ferry Vessel (OGV)	2119	20 Nov 2021
5	5th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3035	21 Dec 2021

Start Production
Sl. No.	Ship	Yard	Date
1	2nd Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3030	14 Jul 2021
2	3rd Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3031	14 Jul 2021
3	Ocean Going Passenger & Cargo Ferry Vessel (OGV)	2119	07 Aug 2021
4	5th Anti-Submarine Warfare Shallow Water Craft (ASW SWC)	3035	28 May 2021

Contracts Signed

During this year, your Company concluded a contract for supply of an additional Fast Patrol Vessel (FPV) for the Indian Coast Guard as a replacement against the FPV exported to Seychelles on 28 May 2021.

In addition to pursuing defence projects, your Company has also pursued projects in non-defence government sectors. GRSE bagged an export order worth 1.82 M USD from Department of Fisheries, Bangladesh to supply six ''Patrol Boats''. This was the first export order won by GRSE on competitive bidding where 06 bidders from Bangladesh, Sri Lanka, South Korea, Finland and Singapore participated. Notification of Award was issued to GRSE on 01 Jul 2021 and subsequently, contract has been signed on 28 Jul 2021 between GRSE and Department of Fisheries.

SHIP REPAIR

During the Financial Year 2021-22, your Company has successfully completed the refit of Barracuda, a Mauritius Ship for amount of '' 20.90 crore. In order to give thrust to Ship Repair and Refit business, the Company has signed an agreement with Syama Prasad Mookherjee Port, Kolkata for long term lease of 03 existing Dry Docks for shipbuilding including repair & refit of ships. The refit of ICGS Sarojini Naidu was also undertaken in this year.

ENGINEERING DIVISION

The Value of Production (VOP) achieved by the Engineering Division during the financial year 2021-22 amounted to '' 71.83 crore.

Portable Steel Bridge Unit

The Value of Production achieved by the Bailey Bridge unit during the financial year 2021-22 amounted to '' 60.03 crore [consisting of (70) Bridges, 5400 MT] as against '' 50.16 crore [consisting of (58) Bridges, 4895 MT] during the previous year 2020-21.

Out of 70 Bridges, your Company has exported Fourteen Bridges to Bhutan (Ten Bridges) and Nepal (Four Bridges) during 2021-22, VOP from such export order in FY 2021-22 is '' 7.07 crore.

Bailey Bridge Unit has also achieved a major milestone in August 2021 by successfully completing Load Testing for 1 No of 140 ft. Double Lane Modular Bridge Load class 70R Bailey bridge and supplied the

same to Director General of Border Roads (DGBR) / Project Swastik at Flaghill, Dokala, Sikkim. Another important achievement was the signing of an MOU with DGBR for supply of 27 Double Lane Modular Steel Bridges.

Deck Machinery Unit

Deck Machinery Unit of your Company is engaged in manufacturing and supply of various Deck Machinery equipment comprising of Anchor Capstan, Anchor Windlass, Mooring Capstan, Dock Capstan, General Purpose Davits, Ammunition Davit, Electric Boat Davits, Electro-Hydraulic Boat Davits, Survey Motor Boat Davits, Hydrographic Davits, Oceanographic Winch, Anchor cum General Purpose Winches for beaching operations, Helo Traversing System (Both Rail based and Rail Less type) & various types of Naval Pumps consisting of marine fresh water and sea water pumps of different discharge and capacity based on application.

During FY 2021-22, the total Value of Production of the Deck Machinery Unit for the financial year 2021-22 is '' 20.61 crore. Out of this, Value of Production of Deck Machinery division stands at '' 11.80 crore excluding internal consumption. Equipment and spares with sale value of '' 6.03 crore have been supplied to various new construction yards as well as to operational ships of Indian Navy and Indian Coast Guard.

During FY 2021-22, total fifty-six (56) Nos. of different Deck Machinery equipment and pumps have been supplied to various new construction yards as well as to operational ships of Indian Navy and Indian Coast Guards. In addition, the Ground Support Equipment of Rail Less Helicopter Traversing System for Advanced Light Helicopter (ALH) has been indigenously designed and manufactured for use on board Indian Navy and Indian Coast Guard ships.

ENGINE DIVISION

The Diesel Engine Plant (DEP) of your Company at Ranchi has successfully completed the Factory Acceptance Trial and delivery of the first shipset of 1 MW DAs of the P17A Project.

The division has achieved Value of Production of '' 55.48 crore during the financial year 2021-22 from diesel engine business.

The DEP Ranchi has also signed the rate contract with Indian Coast Guard (ICG) for the W6 routines (overhaul) of MTU 4000 series engines.

You may also note that the Bailey Bridge Components are also being produced at DEP unit at Ranchi.

NEW INITIATIVES

In order to establish long term business growth, create & increase of various footprints, your company has taken up the following initiatives with signing of the following MoUs during FY 2021-22:

(a) M/s Kongsberg, Sweden to explore manufacture of propulsion waterjets in India with high level of Indigenous content.

(b) M/s Bridge Engineering Research & Design (BERD), Matosinhos, Portugal to explore and identify synergies and partnerships to approach the bridge market with new design bridges in India and friendly neighbouring countries. GRSE and BERD co-operation offers more and diverse products of Modular Steel Bridges to the markets.

(c) M/s Hindustan Shipyard Limited to facilitate construction and repairs of warships & commercial vessels.

ORDER BOOK POSITION
The total order book position of your Company for the three (3) divisions as on 31 Mar 2022 is as follows:
			('' in crore)
	Sl. No.	DIVISION / DEPTS	Closing order Value as on 31 Mar 2022
A		Ship Division
		Ship (including B&D Spares)	23,864.31
B		Engineering Division
		Bailey Bridge	16.51
		Deck Machinery	78.80
		Total Engineering Division	95.31
C		Engine Division	143.98
		Total (A B C)	24,103.60

(d) M/s ABS Hovercraft Ltd. to explore avenues to collaborate to effectively leverage each other''s competence and strengths to offer state of art Hovercraft to the prospective customers (domestic & foreign) by way of customized design and construction.

(e) Naval Science & Technological Laboratory (NSTL), DRDO - MoD Visakhapatnam for Transfer of Technology (ToT) of 4 MW Diesel Engine Infrared Signature Suppression (DEIRSS) System.

(f) Naval Group SA, France to develop detailed contemplated cooperation and establish a frame work thereof for GOWIND class Frigate project.

(g) M/s. CDC Consulting Design Engg Centre Pvt. Ltd. for Design development and research to pursue and optimize new design requirement and system integration for state of art new generation deck Machinery items.

(h) M/s. Syama Prasad Mookerjee Port, Kolkata (SMP, Kolkata) to undertake the development & utilisation of 03 existing Dry Docks of the Port Trust at Khidderpore, Kolkata. This collaboration will also contribute to the future strategy of GRSE to take on additional shipbuilding activities including repair & refit of ships. Based on the concession agreement, the facility named GRSE-KPDD Unit was inaugurated and taken over from SMPK by GRSE on 01 Dec 21.

(i) DGBR - Border Roads Organisation (BRO) for supply of 27 Nos. Double Lane Galvanised Modular Steel Bridge Load Class IRC-6 70 R (Carriageway 7.5 Mtrs. wide).

(j) M/s Vrinda Engineers Pvt. Ltd., Kolkata for Collaboration for Supply of Permanent Steel Bridges.

RESEARCH & DEVELOPMENT

Next Generation Electric Ferry: Your Company has developed a

concept design for full electric battery operated ferry for transportation

of passengers in the inland waters. This 24m long aluminium vessel

shall have a max speed of 8 Knots and a capacity of carrying 145 passengers. This will be pioneering effort in promoting Green technologies in the Inland Water transportation sector in the country as replacing the conventional inland ferries. This is a step to replace the diesel ferries that cause environmental pollution as they ply over the Hooghly river. Your Company is now building a vessel for Government of West Bengal as a pilot project.

Hovercraft: At present, Hovercraft technology is not available with any of the Indian firms. Various requirements of Indian Coast Guard/ Indian Army etc. are met by Indian Shipyards through licensed production of foreign OEMs design involving royalty payment in foreign exchange. Your Company in past had built Hovercraft for Indian Coast Guard in collaboration with M/s Griffon Hovercraft, UK. Presently, your Company is in the process of working towards Hovercraft requirement of Indian Armed Forces and Coast Guard.

MAKE IN INDIA INITIATIVES

Your Company has implemented the "Make in India and Indigenisation" Policy whereby indigenous vendors are encouraged to quote with maximum indigenisation content through Licensed production with collaboration, Licensed production by way of Transfer of Technology (ToT), Co-production, Assembling, Design and Manufacture in India with ToT. Your Company has developed in-house capabilities to design & build most modern warships in the country. Of these ships, your company has achieved over 90% indigenisation for Landing Craft Utility Ships and over 85% indigenisation for AntiSubmarine Warfare, which is a major step towards achieving selfreliance in state-of-the-art warship design and construction. MoD/GoI has published an Initial Negative List of 101 items followed by 2^nd positive Indigenisation list of 108 items. GRSE''s capabilities for design, development and manufacture of several designated items has been conveyed to MoD-DDP. As per directive of GoI, several imported items have been identified for indigenisation and uploaded in Srijan Portal. Interaction with several interested domestic vendors are underway. GRSE also has a 5 year'' Indigenisation Plan aimed towards Aatma

Nirbhar Bharat'' for presently imported equipment which are primarily project specific and are also planned for incorporation & utilization for various upcoming projects. In accordance with GoI guidelines, GRSE has implemented various measures to support the domestic defence industry for indigenisation of defence manufacturing such as ''Make in India'', ''Make - II'', TReDS, GeM, MSME Sambandh, MSME Samadhan, Online Vendor Registration, E-Procurement, effective utilization of assorted Industry Clusters and ''Aatmanirbhar Bharat for overall selfreliance.

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 March 2022. The Shipyard also won a 1.82 Million USD contract for construction and delivery of six Patrol Boats for the Govt. of Bangladesh, and the contract was signed on 01 July 2021. This is the first export order from Bangladesh through global competitive bidding, with participants of other shipyards, including from Netherland, South Korea, Finland and UAE. Your Company has taken initiatives to export Naval ships to the friendly foreign countries and has identified SAARC, ASEAN, African & Latin American countries such as Seychelles, Bangladesh, Vietnam, Philippines, Myanmar, Guyana, Mauritius etc. as areas of focus.

During FY 2021-22, your Company has generated revenue of '' 60.94 crore from export orders which includes '' 53.87 crore from Shipbuilding & Ship Repairs and '' 7.07 crore from Bailey Bridge.

Your Company has adopted a strategy of engaging with the authorities of the target market countries for export of its products. GRSE regularly supplies Portable Steel Bailey Bridges and its components to the neighbouring countries such as Nepal & Bhutan. Efforts are on to further enhance the export of Bailey Bridges & their components to other friendly foreign countries including Bangladesh (through DLoC route) as well.

Your Company is presently executing the following Export Orders:

(a) Export order of 12.73 Million USD for supply of 01 No. Ocean Going Vessel (OGV) to Republic of Guyana.

(b) Supply of 06 Patrol/ Surveillance Boats for Govt. of Bangladesh for a value of 1.82 Million USD.

(c) Maintenance/ Afloat Support for 03 years for one Fast Patrol Vessel of the Govt. of Seychelles which was constructed and delivered to Govt. of Seychelles by your Company.

INFRASTRUCTURE AND TECHNOLOGICAL MODERNIZATION

Your Company has been continuously modernising its infrastructure/ facilities to be in tune with the changing needs of the technology/ products. During the year 2021-22, the Company has spent '' 42 crore as a part of CAPEX investment towards modernisation of Infrastructure, Technology, Plant & Machinery etc. Following are some of the facilities modernised during the year:

(a) Goliath Crane Project - The new 250 Ton capacity Goliath Crane (116m span) covering Dry Dock, Inclined Berth & Module Hall, has been commissioned in Aug 2021. This facility has enabled Modular and Integrated Construction of warships akin to the best in the world, which is presently being followed for construction of advanced Stealth Frigates (P-17A).

(ii) Augmentation of Low Tension (LT) Power - After modernisation, now both the Finger & Naval Jetties individually is capable of using power up to 2000 A (from previous 630 A) during ship outfitting work.

(iii) Vendor Sheds - For streamlining the activities of OEMs/ contractors and more effective utilisation of space, Vendor Sheds with allied facilities have been created for maximum 50 nos. contractors'' office/store/workshop in a collocated place.

(d) Augmentation of Shipyards'' Block Fabrication Capacity

- Further to construction of two nos. Block Fabrication Sheds in Sept 2020 at Raja Bagan Dockyard (RBD), 02 nos. 25 Ton capacity EOT crane at each workshop has been installed for enhancement of Shipyards'' Block fabrication capacity.

(e) Rooftop Solar Plant - As a part of commitment towards green energy for reducing the impact of atmospheric climate change, 200KWp roof top solar power plant has been commissioned in Feb 2022. With this, the total capacity of rooftop solar plant at GRSE is now 1500 KW i.e. 1.5 MW.

(b) Restoration of Module Hall - The Module Hall at Main Unit, which got severely damaged due to collapse of 250 Ton Goliath Crane in 2018, has been restored along with telescopic sliding roof arrangement & services and made fully functional in Dec 2021. This shop facilitates integration of mega-hull blocks weighing up to 250 Ton with outfitting items.

(c) Upgradation of Fitting Out Jetty (FOJ) Unit - Looking into intensive outfitting for number of ships at FOJ in forthcoming years, following actions have been taken during year: -

(i) Refurbishment of Jetties - The Finger Jetty has been refurbished including structural strengthening and replacement of all Fenders & Bollards.

(f) Technological Modernization - Product Data Management (PDM) & Product Lifecycle Management (PLM) are under implementation for P-17A project by M/s Siemens for interconnection of data at the Naval HQ (New Delhi), MDL (Mumbai), GRSE (Kolkata). and a Disaster Recovery Site. Module related to Design activities has gone live in Nov 21.

(i) Further, a Project Management System based on PLM platform for all shipbuilding projects other than P-17A is also under final stages of implementation.

(ii) Critical Chain Project Management (CCPM) system is also under implementation for two ships.

(iii) Towards enhancing efficiency of the Supply chain management system, an AI based application "Procurement Accelerator" has been implemented in 2021.

FUTURE OUTLOOK

A strong order book for construction of 16 warships concurrently for Indian Armed Forces at this juncture holds exciting times ahead for the GRSE. Recent policy announcement by the Raksha Mantri declaring ‘Initial Negative List of 101 items followed by 2^nd positive Indigenisation list of 108 items'' in the negative list of imports over next five years in defence segment provides huge opportunities to Indian Industry as part of larger objective of ''Atmanirbhar Bharat Abhiyan''. GRSE''s capabilities for design, development and manufacture of several such designated items has also been conveyed to the Ministry of Defence (MoD). The defence shipbuilding segment continues to look promising on account of ambitious acquisition plan of 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. Further, the MoD plan to increase export of defence products to 3.59 Billion USD by end 2024-25 augurs well for all of us.

With all the policy initiatives taken by the Government of India in the recent times for encouraging & supporting ‘Atmanirbharata¹, the overall scenario for warship building looks quite positive in coming years. However, it requires building capabilities and competencies to meet global standards. 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. Thus, the company has embarked on a mission to adapt Industry 4.0 practises in its core areas of functioning such as ‘Design'', ‘Planning'', ‘Production'' and ‘Supply Chain Management''.

Your Company''s major future plans for steady business growth and stability are as follows:

(a) The Vision is to become a Global player by increasing exports 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 possibilities to engage Marketing Representatives to increase geo-strategic reach for exports to friendly countries.

(b) 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.

(c) Continuous endeavour towards assessment of tentative & likely opportunities from the Indian Navy, Indian Coast Guard, Ministry of Home Affairs, Inland Waterways Authority of India over next 05 Years.

(d) Your Company is targeting for orders from the Indian Navy, Indian Coast Guard and Ministry of Home Affairs for AMC & Refits of GRSE built vessels, and have plans to strengthen the refit & repair business verticals.

VENDOR DEVELOPMENT

VENDOR DEVELOPMENT WITH IMPETUS TO MICRO, SMALL AND MEDIUM ENTERPRISES

Our Vendor base has played a pivotal role in the growth of GRSE and your Company is in constant search for MSME Vendors through various vendor meets, seminars, webinars, etc. organized by various important fora like CII, BCCI, MSME, etc. In the ongoing pandemic, webinars are being leveraged for identifying capable entrepreneurs to the GRSE fold.

Your company has made significant improvement in production in spite of lockdown due to COVID Pandemic. This was possible with effective execution of contract management on the outsourced jobs, engagement of good capable service & supply vendor, maintaining proper vendor relation and monitoring vendor performance. To achieve this, your company has introduced vendor grievance redressal system, online performance rating system for service and supply vendor. Further, development of online vendor registration for new vendor has been undertaken in order to improve ease of registration process and minimise the registration cycle time.

Your Company has been providing increased thrust on enhancing procurement from Micro and Small Enterprises (MSEs) and has implemented the Public Procurement Policy for MSEs issued by the Ministry of MSME. Your Company extends technical guidance and requisite support to these industries wherever required. Your Company is regularly conducting MSE Vendor Development programmes in association with CII and MSME Ministry, Government of West Bengal. Our quality control personnel visit these industries to assist and ensure that the quality of the products meet the requisite standards.

During the financial year 2021-22, your Company procured items worth '' 589.81 crore from the MSEs, which is 64% (approx.) of the total annual procurement value (considering exclusions as applicable for MSEs). List of items reserved for MSEs procurement is available on your Company''s website at https://grse.in/policies-for-msme/.

Your Company has on-boarded on TReDS Platform and MSME Sambandh & MSME Samadhaan Portals complying with Government guidelines/ directives.

GOVERNMENT e-MARKETPLACE (GeM)

Your Company has registered with GeM as per Rule No.149 of the General Financial Rules, 2017, for online procurement of common use of Goods & Services.

During the financial year 2021-22, your Company has achieved a purchase figure of '' 305 crores worth goods and services through the GeM portal.

ERP & IT

Your Company is giving thrust to SAP implementation and IT initiatives all across its activities. The highlights in the area of ERP & IT are as follows:

(a) IT Infrastructure: Your Company has well established on premise Data Centre (DC) in Kolkata and Disaster Recovery Centre (DR) at Mumbai. All its local and remote locations are connected through dedicated leased lines and LAN for seamless data transfer and communication. GRSE has already mapped major business processes like Supply Chain, Finance, HR, Payroll, Vendor, Plant Maintenance etc. in SAP ERP in 2010. Total Design

Operations are covered under secured IT Platform with AVEVA CAD, VR LAB, PDM-PLM etc.

(b) Cyber Security: Your Company has a well defined organisational structure for Cyber Security Management. Director (Personnel) is nominated as the Chief Information Security Officer (CISO) for the Company. Cyber Security Enhanced Awareness Training by CDAC to cyber security core group. AIR-GAP implementation across organization and ILL based internet LAN was implemented in all its units.

(c) ERP-SAP: GRSE has adopted a centralised approach to manage critical IT infrastructure on which all business processes are dependent. It includes ERP infrastructure, mail servers, WAN, LAN, network security components, Antivirus and patch management. Further, ERP/SAP core team has also been re-vitalized.

(d) PDM / PLM (Product Data Management / Product Lifecycle Management): Implementation of AVEVA Marine based PDM & Siemens Team Centre based PLM software is under implementation. Modular construction technology with the use of PDM / PLM will improve efficiency and reduction of construction time of P17A ships. Integration of AVEVA CAD data with PLM has been completed. PMS (Project Monitoring System) for SVL and ASW-SWC projects have already been implemented to collaborate with Directorate of Ship Production (DSP) and Directorate of Naval Design (DND). Further, CCPM (Critical Chain Project Management) has already been implemented for two ships as a pilot project.

(e) Work From Home: Secured VPN (Virtual Private Network) facilities are provided to nominated users for "Work From Home" and seamless high-end device based VC (Video Conferencing) being utilized for Video Conferencing with Internal, Ministry and External stakeholders''.

(f) Access Control System: GRSE has already migrated from finger print based system to Face Recognition Based Biometric Access Control System for both permanent as well as contractual employees.

(g) Employee Portal: Employee Portal has been revamped to cover various online modules like PMS (Performance Management System), e-Note Sheet, e-File Tracking, Employee Survey, Asset Tracking, Production Monitoring, QMS, Attendance, Visitor Management System, Employee document like Salary slip, PF-Pension-Tax etc.

HUMAN RESOURCE & ADMINISTRATION

The total Manpower strength under permanent roll of the Company as on 31 Mar 2022 was 1790 including 479 Officers on regular roll, 4 Officers and 39 Supervisors on Fixed Term contract.

(ii) Signing of Memorandum of Settlement with Unionised employees of DEP Unit, Ranchi

The Memorandum of Settlement (MoS) for unionized category of employees of DEP Unit, Ranchi was signed with 04 Unions representing unionized employees of DEP, Ranchi on 03 July 2021. The MoS was signed for 10 years'' periodicity from 01 January 2017 to 31 December 2026. The MoS was implemented and arrears paid in the month of September 2021.

Human Resource Development

Statements showing the representation of SC/ ST/ Women, etc., as on 31 Dec 2021 as well as the total recruitment made during the period from Jan to Dec 2021 are given at Appendices "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 under review across all Units of the Company including DEP, Ranchi remained more or less peaceful.

(i) Election for recognition of Trade Union as ''Sole Bargaining Agent''

The election for recognition of Trade Union as Sole Bargaining Agent was held through secret ballot method on 02 Dec 2021, and operatives posted in Main Yard, 61 Park, GRSE Bhavan, FOJ, Taratala, RBD, TTC, Belur and Regional Office-Delhi participated for electing the Sole Bargaining agent. This election was conducted by the Office of Registrar of Trade Unions, Govt. of West Bengal. In the election, Garden Reach Workshop Mazdoor & Staff Union emerged as ''Sole Bargaining Union'' for 02 years w.e.f 03 Dec 21. Management made all arrangements to ensure smooth conduct of the elections.

Your Company is nurturing and developing a well-balanced workforce of talented individuals who can contribute towards enhancing organization''s growth trajectory. 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 2021-22, your company has prepared and implemented a well-defined Annual Training Plan covering technical, leadership, managerial effectiveness, functional, cross-functional and behavioural competencies development topics for all categories of employees. During the year, 2480 training man-days were achieved through various training programmes. Due to the pandemic scenario, most of the training programmes were conducted through online mode by nominating participants in various online workshops/ conferences/webinars organized by external agencies/training providers in India. In-house training programmes were also conducted by inviting faculty/ trainers from reputed institutions/agencies.

The Company has also promulgated a revised policy on Competency Mapping to develop a robust competency mapping framework at the shipyard.

Apprenticeship Training under Apprentices Act: The company has trained 260 Apprentices during FY 2021-22. Apprentices are engaged under Trade Apprentice, Graduate Apprentices and Technician Apprentice categories and their total strength is approx. 15% of total manpower strength which is over and above the statutory requirement of 2.5%. The Company has a dedicated Apprentice Training School named Technical Training Centre for conducting apprenticeship training. 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 are placed for on job training in the yard.

New HR Initiatives Group Safety Training Kiosk

Your company has been at the forefront of transforming the landscape of its work place. As a part of its safety cultural transformation inside shipyard, the Company has introduced a system-based safety training facility for Contractors'' workmen through installation of a Group Safety Training Kiosk (GSTK) with the motto to ensure zero accident at workplace.

Employee Satisfaction Survey

Employee Satisfaction is one of the key metrics that can help determine the overall health of an organization. Online Employee Satisfaction Survey was conducted for Officers and Supervisors for the year 2021. The objective of the survey was to measure employee satisfaction at GRSE on parameters like Quality of Work Life (Work Environment), Company People Policies & Practices (Compensation/ Benefits/ Facilities), Communication, Learning & Development, Rewards & Recognition. A substantial number of employees actively participated in the survey and candidly submitted their responses. The response of the employee''s satisfaction survey was analysed and many initiatives are being undertaken based on feedback captured through the survey.

Contract Labour Management Software

Your Company has installed Contract Labour Management Software (CLMS) in all the three shipbuilding units as a part of digitisation drive, to bring transparency as well as to ensure robust and real-time compliance by contractors in respect of their workmen deployed inside the factory premises.

Workplace Covid Vaccination Centre

In order to ensure better performance from the workforce during the Covid 19 pandemic situation, your Company with the support of Health Dept., Govt. of West Bengal has started Covid Vaccination Centre inside the Company''s premises and provided free vaccination for permanent employees and contractors'' workers.

MoD Swachhata Pakhwada

As a part of Swachh Bharat Abhiyan, GRSE observed MOD Swachhta Pakhwada from 01 Dec to 15 Dec 21 and several events/ activities were conducted inside and outside the units of GRSE. Your company was conferred the 2nd prize in DPSU Swachhta Pakhwada Competition by MoD.

PERSONS WITH DISABILITIES (PWD)

The Company extended all necessary relaxations /concessions to the employees with disabilities as per the Statute / Govt. directives. During the year 2021, the Company has recruited 01 PWD out of total recruitment of 43 employees.

EMPOWERMENT OF WOMEN

The women representation is 4.97% of the total strength in the Company at the end of the FY 2021-22. During 2021, 04 lady employees have been appointed out of 43 which is 9.3%.

SAFETY AT WORK

The Shipyard has strived to ensure safe working environment to achieve the objective of "zero accident". In order to achieve the same, 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 3.02 during the year 2021-22.

INDUSTRIAL SECURITY

GRSE is a vital organisation with national importance and is classified as special security zone by both State and Central Government and the security of the establishments has got national importance. The physical security of the shipbuilding units of your Company has been entrusted to the Central Industrial Security Force (CISF). Twenty four hours water-front patrolling with armed personnel and a robust CCTV system covering all critical and important locations are in place.

OFFICIAL LANGUAGE

Your Company is committed to adhere to the Official Language (OL) policy of the Government of India (Gol). During the year 202122, the Company has achieved the various targets prescribed in the Annual Programme 2021-22 issued by Dept. of OL, Ministry of Home Affairs (MHA), Gol to transact official work in Hindi. The efforts made towards implementation of Official Language include:

(a) Hindi Month Celebrations: Hindi Month and Hindi Day was observed during September month in all the Units and

Offices of the Company. During the 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.

AWARDS & RECOGNITIONS

Your Company has received the following prestigious awards and

recognitions during the year under review:

(a) Ranking of GRSE at ''Fortune The Next 500 - 2021'' list: GRSE witnessed a phenomenal improvement in its ranking from 123^rd position in 2020 with a giant leap to 40^th position in 2021 in the Fortune Next 500 2021 List of companies in India.

(b) Recognition for GRSE Quality Circle Teams: Four teams conferred with ''Par Excellence'' award and three teams were conferred with ''Excellence'' award in the National Council for Quality Circle (NCQC) 2021.

(c) National Awards for Corporate Excellence 2021: In the

Category - "Innovative Leader in Manufacturing" conferred on 27 Aug 21.

(d) Asian Leadership Award 2021 for ''CEO of the Year'' in the category of Excellence in Branding and Marketing: Asian Leadership Award 2021 for ''CEO of the Year'' in the category of Excellence in Branding and Marketing.

(e) 8^th Governance Now PSU Awards: Governance Now 8^th PSU Awards in the Categories "CSR Commitment", "Digital PSU", "Research & Innovation" and "Communication Outreach" conferred to GRSE on 29 Jul 21.

CORPORATE GOVERNANCE

Your Company is committed to maintain the highest standards of corporate governance in all spheres of business activity carried out by your Company 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, except with respect to the composition of Board of Directors viz. appointment of Independent Directors including a Woman Director and consequence compliances related to Statutory Committees. GRSE being a Government Company, the power to appoint Directors vests with the Government of India and the Company has provided 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, Department of Public Enterprise 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 "Very Good" for the year 2021-22.

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 2021-22, 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
1	Dr. Biswapriya Roychoudhury	Independent Director	-	15 Aug 2021
2	Cmde Sanjeev Nayyar, IN (Retd.)	Director (Shipbuilding)	-	31 Dec 2021
3	RAdm Vipin Kumar Saxena, IN (Retd.)	Chairman & Managing Director	-	28 Feb 2022
4	Shri Sanjay Dattatraya Panse	Independent Director	27 Dec 2021	-

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, Shri Ramesh Kumar Dash, Director (Finance) & CFO, 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 2021-22, 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 2021-22, Meeting of Independent Directors was not held due to non-availability of requisite number of Independent Directors.

MEETINGS OF THE BOARD

Seven (07) meetings of the Board of Directors were held during the year under review. For further details, please refer to the ‘Report on Corporate Governance''.

REMUNERATION POLICY & EVALUATION OF BOARD''S PERFORMANCE

Your Company is a Government of India company under the Ministry of Defence. Presently, the Directors of the Company are the Presidential appointees and their remuneration is fixed in accordance with the DPE Guidelines. Accordingly, Articles 194 and 216 of the Articles of Association of your Company 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

As on 31^st March 2022 and during the FY 2021-22, the Audit Committee was not reconstituted due to non-availability of adequate number of Independent Directors on the Board of the Company, in line with Section 177 of the Companies Act, 2013, the DPE Guidelines on Corporate Governance for CPSEs, 2010 and the SEBI Listing Regulations. The Independent directors of your Company are appointed by the President of India acting through the Government of India and such appointment is pending at their end.

During the year, all the agenda items which are required to be discussed at the Audit Committee were directly placed to the Board for discussion and approval.

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

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 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, 2022, 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 from the same;

(b) The Directors had 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, 2022 and of the profit of your Company for the year ended on that date;

(c) The Directors had 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 had prepared the Annual Accounts on a ''going concern'' basis;

(e) The Directors had 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

The Comptroller & Auditor General of India have, under Section 139(5) of the Companies Act, 2013, appointed M/s. Mookherjee, Biswas & Pathak., Chartered Accountants, Kolkata, as the Statutory Auditors of your Company for the financial year 2021-22.

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 2021-22 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 2021-22 to conduct audit of cost records maintained by your Company.

SECRETARIAL AUDITOR

Pursuant to Section 204 of the Companies Act, 2013, the Board of your Company has appointed M/s. Vinod Kothari & Co., Practicing Company Secretaries to conduct Secretarial Audit of the Company for the FY 2021-22. The Secretarial Audit Report of M/s. Vinod Kothari & Co. is placed at Appendix - "C" to this Report. The Secretarial Audit Report has no adverse remarks. However, the Secretarial Auditor observed that the Company did not have requisite number of Independent Directors including Woman Independent Director. The Secretarial Auditor also observed that the Audit Committee and HR, Nomination and Remuneration Committee was not constituted during the Financial Year 2021-22 and also Stakeholder Relationship Committee, Risk Management Committee and Corporate Social Responsibility & Sustainability Committee were not constituted from 15

Aug 2021 to 11 Feb 2022 due to inadequate number of Independent Directors in the Board of the Company during the FY 2021-22.

The Company being a Government Company under the administrative control of the Ministry of Defence, the appointment/nomination of Directors, (including Independent Directors and Woman Director) are made by the Government of India through Presidential Order, as per the Government guidelines. The Company on several occasions has requested to the Ministry of Defence (MoD), Government of India, for appointment of requisite number of Independent Directors on the Board. The appointment/ nomination order from the Government is awaited.

The other observations and clarifications made by the Secretarial Auditor in their Secretarial Audit Report are self-explanatory.

Pursuant to the SEBI circular no. CIR/CFD/ CMD1/27/2019 dated February 8, 2019, the Company has obtained an Annual Secretarial Compliance Report for the year 2021-22 from M/s Vinod Kothari & Co., Practicing Company Secretary, 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. V Singhi & Associate, Chartered Accountants to conduct Internal Audit for the financial year 2021-22.

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 33 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/wp-content/uploads/2022/04/Policy-for-Related-Party-Transactions-GRSE.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 Company''s

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 Company''s website at https://grse.in/wp-content/uploads/2022/04/Whistle-Blower-Policy-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 Company''s 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

GRSE believes in cultivating socially sustainable inclusive development which can contribute to build better sustainable community and touch lives of millions of people positively, specifically the marginalized segment residing in the vicinity of the production Units by undertaking CSR initiatives. In last few years, GRSE has created a positive footprint within the society to make a meaningful difference in the lives of people by continually aligning its CSR initiatives to the goals for sustainable development.

The GRSE CSR Policy was amended in accordance with the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 issued by Ministry of Corporate Affairs (MCA) vide its Gazette notification no. G.S.R.40 (E) dated 22 Jan 2021. The revised GRSE CSR & Sustainability Policy was promulgated on 07 Sep 2021 and can be accessed on the website of the Company.

The focus areas of Company''s CSR initiatives include Health care, Nutrition, Education, Skill development, Infrastructure development of educational institutes, cleanliness campaigns under Swachh Bharat Mission, sanitation and hygiene, mainstreaming differently abled persons and improving the quality of life of the marginalized segment. Keeping in view the spread of COVID-19 in India, GRSE embarked on noble ventures of Covid prevention initiatives like installation of medical oxygen generation plants and other healthcare facilities for the marginalized segment of population residing in the vicinity of the factory premises. Thrust was also given for mainstreaming the differently abled and holistic development of underprivileged tribal children including provisioning of nutritional supplements especially when this segment was hard hit by the pandemic. The Annual report on CSR projects/ activities undertaken in FY 2021-22 has been appended as Appendix- "E".

RISK MANAGEMENT

103. Pursuant to the 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 REPORT

The Securities and Exchange Board of India (SEBI) has mandated inclusion of Business Responsibility Report ("BR Report") 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 Report describing the initiatives taken by the listed entity from an environmental, social and governance perspective in the format specified. Accordingly, the Business Responsibility Report for the year 2021-22 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, TECHNOLGY 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 Sept 2015 has granted exemption to Defence Public Sector Undertakings.

IMPLEMENTATION OF RTI ACT

In consonance with the provisions of the Right to Information Act, 2005 (the RTI Act), your Company has well-defined mechanism in place to address the provisions of the RTI Act.

RTI matters are being executed as per the provisions of the Right to Information Act, 2005 and rules therein. During the year 2021-22, a total of 119 in number RTI requests through online/offline mode were received, while opening balance from previous year was brought forward to 8. A total of 96 in number RTI applications were replied to during the year and 1 in number RTI Application was transferred to other concerned Department of Govt. of India and remaining 30 in number RTI applications were taken as ''carried forward'' to the year 2022-23. The Quarterly Returns are being uploaded on the CIC''s 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. In compliance with the provision of section 26 of the RTI Act, 2005, an In-house Awareness Programme on RTI Act was conducted during the year 2021-22.

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 and Redressal) Act, 2013, the Internal Committee was reconstituted on 18 Aug 17 with an external member who is a person familiar with the issues relating to sexual harassment.

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

(a) Number of complaints of sexual harassment received during the year: Nil

(b) Number of complaints disposed off during the year: Nil

(c) Number of complaints pending for more than ninety days: Nil

(d) Number of workshops or awareness programme against sexual harassment carried out: Two

(e) Number of meetings of Internal Committee conducted during the year: Two

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).

Your Company is committed to the resolution of public grievances in an efficient and time bound manner. Upon receipt of public grievances, the matters are being resolved by examination of facts of each case with due diligence by the concerned departments. During the year under review 2021-22, a total of 25 no. of public grievances through online/ offline mode were received, while opening balance of 1 no. from previous year was brought forward. All the above mentioned 26 no. of public grievances were resolved within 2021-22. Company''s official website has provided a link to the PG portal to enable the citizens to file grievance online.

VIGILANCE ACTIVITIES

The main thrust of the Vigilance Department is to ensure transparency, fairness & probity in all spheres of activities of the Company. Towards this, focus of the department was on both, punitive & preventive vigilance. During the year, many spheres of activities were taken up 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) Investigations were conducted on complaints received from various sources and appropriate actions were taken.

(b) As a preventive measure, regular & surprise inspections and scrutiny of files were carried out.

(c) Suggestions for system improvements have been made to the management for implementation.

(d) As per the directives of CVC, training to officers on Preventive Vigilance has been started from Nov 2020. The Two day Training Programme is being conducted for 20 officers each month.

(e) Annual Property Returns filed by the officers were scrutinized. Vigilance status of officers was assessed at various stages. The implementation of actionable points is being monitored through quarterly reports and submitted to MoD informing the status of action taken.

(f) The following Vigilance Activities have been made online in 2022:

(i) Submission of Annual Property Return

(ii) Processing of Vigilance Clearance of employees

(g) Agreed list was drawn up with the CBI and close liaison was also maintained with the CBI.

(h) The Company observed Vigilance Awareness Week during 26 Oct - 01 Nov 2021 and carried outreach activities for employees and their families.

(i) Meetings with C&MD were held with CVO at regular intervals to discuss the status of vigilance cases.

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 '' 2 crore and above.

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 Shri Girish Shankar, IAS (Retd.) and Shri R Kuppan, IRSME (Retd.) as Independent External Monitors of the Company and they completed their 3 years'' tenure on 25 Dec 2021. Subsequently, Shri Bam Bahadur Singh and Shri Pidatala Sridhar, IRS (Retd.) as Independent External Monitors (IEMs) for a period of three years from 26 Dec 2021 for monitoring implementation of Integrity Pact in the Company. During the Financial Year 2021-22, the IEMs monitored 224 contracts and held 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 Board''s 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 and Indian Coast Guard Headquarters, Ministry of Home Affairs, Ordnance Factory Board, Kolkata 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 cooperation and positive approach of the Warships Production Superintendent and his dedicated team under whose watchful eyes our ships are being built. Also, we thank all classification societies, in particular, IRS & ABS, 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, Company''s 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/-

Cmde Hari P R, IN (Retd.) Place: Kolkata Chairman & Managing Director

Dated: 26^th July, 2022 DIN: 08591411

---

Mar 31, 2018

Dear Members,

1. The Directors have great pleasure in presenting the Annual Report of your Company for the financial year 2017-18 together with the Audited Financial Statements for the year ended 31" March 2018.

PERFORMANCEHIGHLIGHTS

2. Profit: The Directors are delighted to inform that the Company recorded Profit Before Tax of Rs. 127.75 crore during FY 2017-18, registering a growth of 535%. The Net Profit of Rs. 86.80 crore reflects an impressive growth of 657% on the figures reported during last year.

3. Turnover / Value of Production: The Company''s marked improvement in its profitability is reflected in the substantial growth in turnover of around 45% over previous financial year

4. MoU Rating: Your Company has been rated "Good” as per MoU Rating for FY 2016-17 by the Department of Public Enterprises. Further, on the basis of actual achievements vis-a-vis parameters laid down in the MoU signed with the Government for the year 2017-18, the Company expects ‘Excellent’ Rating for its performance during 2017-18.

5. Ship Division Activity: Your Company has delivered four (04) ships to the Indian Navy during the financial year 201718

AWARDS# RECOGNITIONS

6. Your Company has received the following major awards and recognitions during theyear under review:

(a) ''Raksha Mantri''s Awards’ for Excellence in respect of OFB and DPSUs for the years 2014-15 & 2015-16 for ‘In-house Design Efforts for Offshore Patrol Vessel for Mauritius - CGS Barracuda''.

(b) Rajbhasha Kirti Puraskar'' – 2^nd Prize awarded for the year 2016-17 for Excellence in Implementation of Official Language in the Company in “C" Region. This is the Highest Award of the Government of India for Excellence in Implementation of Official Language and your Company is now the proud winner for five years in a row.

(c) PSE Excellence Award - 2016'' by Indian Chamber of Commerce for the year 2016 are as follows:

(i) Winner ICC PSE Excellence Award in the category ''Company of the Year''.

(ii) Winner ICC PSE Excellence Award in the category Corporate Governance''.

(iii) Runner-Up; ICC PSE Excellence Award in the category ''Contribution of Women in PSEs¹.

(iv) Runner-Up: ICC PSE Excellence Award in the category ''Human Resource Management Excellence''.

(v) Runner-Up: ICC PSE Excellence Award In the category ‘CSR & Sustainability'',

(d) ''GOLD Award'' was conferred at the International Convention on Quality Control Circle-2017 (ICQCC-2017) held at Pasay City, Philippines for outstanding performance on ‘Quality Control'' activities.

(e) ‘SCOPE Corporate Communication Excellence Award - 2017'' awarded to the Company in the following two categories:

(i) Best Corporate Communication Campaign / Program (External)

(ii) Brand Building through Inclusive Growth Initiatives.

(f) ''Governance Now 5'' PSU Award for 2016-17'' in three (03) categories, namely, Adoption of Technological Innovations, HR Excellence and Nation Building for the financial year 2016-17.

(g) ''WIPS Activities Award 2018'' in recognition of the commendable performances with regard to issues related to Women in Public Sector.

(h) ‘ET Bengal Corporate Award on Best CSR Idea -2018'' awarded by The Economic Times Group in recognition to the innovative ideas on CSR activities.

OPERTAT1NG RESULTS

7. The summarized operating results for the financial years 2017-18 and 2016-17 are given below:

(Rs. in crore)

Particulars	2017-18	2016-17
Value of Production	1342.38	927.08
Total Revenue from Operation	1346.52	929.32
Profit Before Depreciation, Interest and Tax	164.40	55.89
finance Cost	2.79	3.04
Finance Cost due to discounting	4.90	6.08

(Rs. in crore)

Particulars	2017-18	2016-17
Depreciation	28.26	26.65
Profit Before Tax	127.75	20.12
Provision for Tax	40.95	8.65
Profit After Tax	86.80	11.47
Other Comprehensive Income (Net of Tax)	7.55	0.23
Total Comprehensive income	94.35	11.69

8. The financial position of your Company as on 31 Mar 2018 and 31 Mar 2017 is shown below:

(Rs. in crore)

Particular	As on 31 Mar 18	As on 31 Mar 17
Capital Employed	939.89	mm
Gross Block	472.33	412,63
Net Block	389.17	358,34
Working Capital	550.72	523.20
Net Worth	1015.93	1083,15
Value Added	419.23	318,58
Ratios: (%)
Profit before interest and tax: Capital Employed (%}	14.41	2.98
Profit after tax: Net Worth (%)	8.54	1.06

VALUEOF PRODUCTION

9, During the financial year under review, your Company achieved Value of Production (''VoP'') of Rs.1342.38 crore as against Rs.927.Q8 crore during the previous year, which is an increase of 45% over previous year.

10, The comparative VoP for the three Divisions are as follows:

(Rs. in crore)

Year	Ship Division	Engineering Division	Engine Division	Total
2017-18	1267,92	68.90	5.56	1342.38
2016-17	337.56	85.80	3.72	927.08

PROFIT BEFORE TAX

11. Your Company earned Profit Before Tax of Rs.127,75 crore as against Rs.20.12 crore in the previous year, signifying an increase by 535%,

NETWORTH

12, During the year under review, your Company reported Net Worth of Rs.1015.93 crore as at 31 Mar 18 against Rs.1083.15 crore as reported at 31 Mar 17.

VALUEADOITION

13. The Value Added during the financial year under review was Rs.419.22 crore as against Rs.318.58 crore during the previous year. The Value Added per Employee was Rs.18.94 lakh as compared to Rs.13.27 lakh during the previous year,

APPROPRIATIONS&DIV1DEND

14, Considering the financial performance of your Company in the year 2017-18, the Directors are pleased to recommend the following appropriations from the disposable surplus:

(Rs. in crore)

Profit After Tax	86,60
Less:
Transfer to Genera! Reserve	-
Dividend on the Paid-up Capital	50,80
Dividend Tax	10,44
Balance retained in Statement of Profit & loss	25.56

CONTRIBUTION TO EXCHEQUER

15. Your Company has made a contribution of Rs.167.81 crore to the National Exchequer during the financial year 2017-18 as detailed below:

(Rs. in crore)

(a)	Income Tax. Wealth Tax & Dividend Tax	45.64
(b)	Customs Duty	0.30
(c)	Excise Duty	0.02
(d)	Sales Tax / GST	119.39
(e)	Service Tax	2.46
TOTAL		167.81

Note; The above figures are inclusive of Education Cess, but exclusive of the Excise Duty & Taxes included in the purchase price of the inputs.

CAPITAL STRUCTURE

16. The Authorized Equity Share Capital of your Company as on 31 Mar 18 was Rs.125 crore. During the year under review, your Company has sub-divided its shares from Rs.100/- per share to Rs.10/- per share at its Annual General Meeting held on 25 Aug 2017. Further, the Board of Directors at its meeting held on 06 Dec 2017 approved the Buyback of 92,88,000 equity shares of Rs. 10/- per share at a Buyback price of Rs.83.58/- per share amounting to Rs.77,62,72,500/-. The Buyback of shares was completed on 02 Jan 2018, During the FY 2017-18, the Government of India did not make any fresh investments in the Share Capital of your Company. Consequent to the aforementioned activities, the Paid-up Equity Share Capital as on 31 Mar 2018 stood at Rs. 114.55 crore.

LOANSFROMTHEGOVERNMENT

17. Your Company neither had any outstanding loan from the Government of India at the beginning of the year nor did it take any fresh loan during the current year.

CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES

18. 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,

EXPENDITURE ON ENTERTAINMENT AND FOREIGN TRAVEL

19. Expenditure on business promotion abroad during the year was Rs.39.43 lakh (approx.). An amount of Rs.58.41 lakh (approx.) was spent on foreign travel by your Company''s executives for export promotion and for business visits.

FOREIG N EXCHANG E EARNINGS & OUTGO

20. The income and expenditure in foreign currency for FY 2017-18 is Nil and Rs.1090,45 lakh, respectively.

PERFORMANCE OFSKIP DIVISION

Deliveries of Ships

21. The following four(04) ships were delivered during the financial year 2017-18:

SI. No.	Ship	Yard	Delivery
1	INS TARASA (4 FO-WJFAC)	2112	15 Jun 17
2	L-52 (2 Landing Craft Utility)	2093	20 Jul 17
3	INS KILTAN (3''ASWC)	3019	14 Oct 17
4	L-53 (3 Landing Craft Utility)	2094	09 Jan 18

22. The 3^rd Ship of Anti-Submarine Warfare Corvette (ASW Corvette) class, ’INS Kiltan¹ was commissioned by Smt. Ninnala Sitharaman, Hon''ble Raksha Mantri at Visakhapatnam on 16 Oct 17.

23. The 2^nd Landing Craft Utility (LCU) MK-IV class ship, ''L-52'' was commissioned and inducted into the Andaman & Nicobar Command’s fleet by Lt. Governor, Andaman & Nicobar Islands, Prof. Jagdish Mukhi on 21Aug 17.

24.The 3^rd LCU MK-IV class ship. ‘L-53¹ was commissioned at Port Blair by Vice Admiral B K Verma, AVSM, ADC, Flag Officer Commander-in-Chief, Andaman & Nicobar Command on 25 April 18,

25. The 4^th Follow-on Water Jet Fast Attack Craft class (FO-WJFAC), ''INS Tarasa¹, was commissioned by VAdm Girish Luthra, PVSM, AVSM, VSM, ADC Flag Officer Commanding in Chief, Western Naval Command at Mumbai on 26 Sep 17.

Launching of ships

26. The following two (02) ships were launched during the FY 2017-18:

Keel Laying

SI. No	Ship	Yard	Date
1	PRIYADARSHANI (1'' FPV)	2113	30 Dec 17
2	ANNIE 0ESAMT (2* FPV)	2114	31 War 18

27. The first & second ships of the Fast Patrol Vessel (FPV) class were launched by Smt. Kadambari Saxena, W/o Rear Admiral V K Saxena, IN (Retd), Chairman & Managing Director, GRSE and by Smt. Bibha Krishna, W/o Lt. Gen Abhay Krishna, PVSM, UYSM, AVSM, SM, VSM, GOC-ln-C, HQ Eastern Command on 30 Dec 2017 &31 Mar 2018, respectively.

Keel Laying

28. Kee! of the following five (05) FPVs have been laid during in this financial year;

SI. No.	Ship	Yard	Date
1	1st FPV	2113	15 May 17
2	2nd FPV	2114	11 Aug 17
3	3rd FPV	2115	30 Oct 17
4	4thFPV	2116	30 Oct 17
5	5th FPV	2117	20 Feb 18

Start Production

29. "Start Production of Yard 3022” the first Frigate of the P-17A Project was commenced ahead of schedule which was another credible achievement during the FY 2017-18.

Major Projects in Progress

SI. No.	Ship	Yard	Status
1	L-54 (4:" LCU)	2095	All trials completed and the ship is being readied for delivery,
2	1-55 j? LCU)	2096	Trials of auxiliary machinery & systems in progress. Ship is being readied for BUCST.
3	L-56 (6;il LCU)	2097	Ship in advanced stages of outfitting

ENGINEERING DIVISION

30. The Value of Production achieved by the Engineering Division during the financial year 2017-18 amounted to Rs.68.89 crore.

Portable Steel Bridge Unit

31. The Vaiueof Production achieved by the Bailey Bridge Unit during the financial year 2017-18 amounted to Rs.68 crore (consisting of sixty-seven (67) Bridges with combined 4305 MT) as against Rs.79 crore (consisting of seventy-four (74) Bridges with combined 4848 MT) during the previous year 2016-17.

32, This drop in VoP is mainly because of reduced receipt of Supply Orders due to increase in competition. Suppliers of Bailey type Bridges registered with CQA (EE) is now around sixteen (16) Nos. as against five (05) Nos. two years back. Further, value of orders received during 2017-18 was about Rs.60crore.

33. During 2017-18, your Company exported about ten (10) Bailey Bridges to Bhutan & Myanmar which includes 8 Nos. to Myanmar Army through MEA (i.e. F.Q.R. to Moreh, Manipur, India).

34, During 2017-18, your Company has undertaken its Maiden Delivery of Portable Steel Bridge from DEP, Ranchi Unit to M/s. Reniya Enterprises, Itanagar. Additional Production line was created here and production started during July 2016 which resulted In the first delivery of the Portable Steef Bridge from there.

35, To meet the latest requirements of prospective customers, the following R&D initiatives were taken:

(a) Indigenous development of Cable Gripper used in Suspension Bridges,

(b) Development of Double Lane Bridge using 7 ft. Panel.

(c) Development of Portable Pedestrian Bridge (i.e. Assault Bridge) using Carbon Fiber Reinforced Polymer Composites to meet the requirements of !HQ(Army).

36. During 2017-18, Quality Management System of both Bailey Bridge Unit & DEP Unit were re-certified to ISO 9001-2008.

Deck Machinery and Naval Pump Unit

37. The Taratala Unit of your Company is engaged in manufacturing and supply of various Deck Machinery equipment comprising of Anchor Capstan, Anchor Windlass, Mooring Capstan, Dock Capstan, Electric & Electro-hydraulic Boat Davits, Survey Motor Boat Davits, Hydrographic Davits, Oceanographic Winch, General Purpose Davits, Ammunition Davit / Rocket Launcher Davit, Raii-less helo traversing system, Aft Anchor cum General Purpose Winches for beaching operations & various types of Naval Pumps consisting of marine fresh water and sea water pumps of different discharge and capacity based on application.

38. During FY 2017-18, a total of fifteen (15) Nos. of different Deck Machinery equipment have been supplied to various new construction yards as well as operational ships of Indian Navy and Indian Coast Guards and a total of twenty-one (21) Nos. of pumps have been supplied for ships of Indian Navy. The indigenized electro-hydraulic davits have been successfully Installed and commissioned on-board two Indian Naval ships. A new state-of-the-art pump test bed with PLC system has been installed and commissioned in Taratala Unit for trials of pumps with different discharge and heads.

ENGINEDIVISION (RANCHI)

39. During the year under review, your Company completed W6 routines of 06 Nos. MTU 16\/4000M90 engines of ICGS Aruna Asaf Ali & ICGS Subhadra Kumart Chauhan including onboard trial. Further, your Company completed assembly and test bed trial / FAT of twelve (12) Nos. SKD MTU16V4000M90 engines for FPV ships of Indian Coast Guard under construction at your Company,

NEW OROERS

Ship Division

40. Your Company is expected to receive the following new shipbuilding orders:

(a) Your Company has emerged as LI bidder for construction of Survey Vessel (Large) @ Rs.518.96 crore per ship, The contract is expected to be signed by end 2018.

(b) Your Company had submitted Bids for AntiSubmarine Warfare - Shallow Water Crafts (ASW-SWC) for Indian Navy in the year 2014. The tender was for awarding contract for certain number of ships to LI bidder and the same number of ships to L2 bidder at LI quote. Price Bids were opened on 28 Sep 2017 in which your Company has emerged as L2 bidder vis-a-vis Cochin Shipyard Limited (CSL) emerging as the LI bidder. As per RFP, L2 has to match LI contract price as finalised at Commercial Negotiation Committee and is required to accept the order for the second lot of ships at LI bid price.

Your Company has officially given its willingness, submitting firm and final offer, matching LI Price and Terms & Conditions, The case is under process for CCS approvals. The contract (amounting to Rs.674.29 crore per ship) is expected to be signed by end 2018.

Engineering Division

41. During the year under review, the Bailey Bridge Unit bagged two (02) orders against competitive bidding viz. thirteen (13) Nos. Bailey Bridges from DGBR amounting to Rs.5,25 crore and thirty-four (34) Bailey Bridges from (HQ (Army) amounting to Rs.24 crore.

42. During Jan 2018, our design team extended their expertise (i.e. design verification and review) to IHQ (Army) In construction of five (05) Nos. Foot Over bridges for Mumbai Railways towards disaster management. Subsequently, your Company bagged order for supply of these bridges to IHQ (Army) amounting to Rs. 2.54crore,

43. MoU Agreement with M/s. Bihar Rajya Pul Nirman Nigam Ltd. (''BRPNNL'') on 21 Nov 2017 for supply of seven (07) Nos, of Bailey Bridges. Under this agreement, all civil related works will be carried-out by BRPNNL and bridge supply & erection will be by your Company.

Engine Division

44. Your Company received purchase orders for supply of twenty-eight (28) Nos, 1MW DG set for P-17A project at a total value of Rs.225.82 crores.

MAKE IN INDIA INITIATIVES

45. Your Company has implemented the "Make in India and Indigenisation" Policy whereby indigenous vendors are encouraged to quote with maximum indigenisation content through Licensed production with collaboration, Licensed production with Transfer of Technology (ToT), Co-production, Assembling. Design and Manufacture in India with ToT. Your Company has developed in-house capabilities to design & build most modern warships in the country. Of these ships, the ASW Corvettes and LCUs have high indigenous content of over 90%, which is a major step towards achieving self-reliance in state-of-the-art warship design and construction.

46. Your Company has taken various indigenisation initiatives towards the Government''s Policy on ''Make in India''. Some of the initiatives are as follows:

(a) The Memorandum of Understanding (MoU) regarding development of engines for marine applications was signed between your Company and M/s. Cooper Corporation Private Limited on 16 Oct 2017. The scope of collaboration is to manufacture Diesel Engines for marine Diesel Genset (DG) application for Navy and Coast Guard vessels of the Range 50-500 KW with an aim towards self-reliance and to promote ''Make in India'' initiative,

(b) Your Company has taken up the challenging indigenisation initiative and successfully completed Assembly, Test and Factory Acceptance Trials (FAT) of eighteen (18) Nos. MTU Diesel Engines from Semi-Knocked Down (SKD) condition to Completely Built Unit (CBU) at your Company’s Diesel Engine Plant (DEP) at Ranchi,

(c) The major indigenisation target of Deck Machinery & Pump Dept, set for FY 2018-19 is ''Indigenisation of Russian Origin Pump with Capacity of 100 TPH at 80 M Head Fire Main Pump for Indian Naval Ships''.

(d) Manufacture of Cable Gripper for suspension bridges,

EXPORT INITIATIVES

47. Your Company participates in global tenders abiding by all Government Policies & Guidelines to build up healthy order book position. Your Company has a full-fledged Marketing Department for securing orders. The Shipyard is pursuing export initiatives of its warships / vessels with Governments of Guyana, Philippines, Bangladesh, UAE etc. In addition, your Company is also aggressively marketing its Portable Steel Bridges with neighbouring countries like Bhutan, Myanmar, Nepal etc.

48. The following are the various export initiatives taken by the Company during the FY 2017-18:

(a) The Memorandum of Understanding (MoU) for promulgation of export business and cooperation on mutual interests was signed between your Company and M/s, Construction Development Corporation Ltd (CDCL), a state owned company under Druk Holdings and investments [DHI], Royal Government of Bhutan, Your Company and CDCL mutually agreed to share their experience and expertise to develop products to meet changing requirements of prospective customers in Bhutan,

(b) Your Company bagged an order worth Rs.4.65 crore (excluding applicable taxes) for supply and transportation of components of GRSE make Portable Steel Bridges to Myanmar (Army).

(c) Your Company bagged an export order worth Rs.70.67 lakh from M/s. Green Ventures Pvt. Ltd., Kathmandu, Nepal, for supply of GRSE manufactured pre fabricated Portable Steel Bridge.

(d) Your Company is to submit its response to an RFP promulgated by the Transport & Harbour Department, Guyana, for Design and Construction of one (01) No. Ferry. Your Company has forwarded the proposed Technical Specifications as well as a sample internationally practiced Draft Contract document to suit the construction and delivery requirements of the Ferry Craft.

(e) Our portable bridges confirm to Global AASHTO (American Association of State Highway Transportation Officials) Standards and are supplied in hot dip galvanized condition.

FUTUREOUTLOOK

49. Your Company''s major future plans for steady business growth and stability is contained in succeeding paragraphs,

50. Your Company has planned to deliver 09 warships in the next 02 years of 2018-19 and 2019-20. Your Company has set a visionary target for Value of Production (VoP) increasing the same from Rs.i_t342.38 crore in 2017-18 to Rs.4,500 crore over the period of next 05 years (2023-24). In order to achieve this VoP target and make the entire ship construction process time and cost effective, your Company has worked out a strategy in consultation with M/s. Fincantieri, Italy to implement Integrated Construction Technology in Project 17-A and future warship projects of existing domestic customers {Indian Navy / Coast Guard) and overseas customers.

51. After creating world class modern infrastructure facilities, your Company has now embarked upon new measures to enhance the shipbuilding capacity, modernise & upgrade the machines / tools in the workshops, upgrade the design / planning tools, softwares etc. In order to ensure optimization of capacity utilization, your Company is endeavouring to obtain further orders from the Indian Navy and Indian Coast Guard as well as a overseas clients. Your Company is pursuing with Indian Navy and Ministry of Defence for nominating the shipyard for construction of New Generation Corvettes, early award of contracts for construction of Survey Vessel (Large) & AntiSubmarine Warfare Shallow Water Craft (ASW-SWC).

52. Your Company has taken up challenging Research and Development targets with regard to shipbuilding activities during 2018-19 and three major R&D targets are slated during the given year. These include Basic Design of Survey Vessel Large (SVL), Design Development of Floating Border Outpost (FBoP) and Hull form Development for ASW-SWC.

53. Your Company has also planned to upgrade and expand its business of Pre fabricated Steel Bridges, Deck Machinery Products and Engines, The Bailey Bridge Unit is actively and on continuous basis upgrading its Design and R&D capabilities in order to meet the changing market requirements, The new R&D Initiatives in the given business segment include Indigenous Development of Cable Gripper as a substitute to Trewhella Grabs, Design & Development of Double Lane Bridge and Design & Development of Assault Bridges. Further, Deck Machinery Unit has drawn plans to improve upon the existing product lines to meet customer requirements and also to develop the business segment of Marine Pumps with higher degree of indigenisation of Russian made Pumps. Leveraging on the modernisation at Diesel Engine Plant at Ranchi, your Company has devised a business strategy not only to ensure timely delivery of 28 Nos. 1 MW Diesel Alternator for Project P17-A but also grow in capacity and product lines by signing new agreement with M/s. Cooper Corporation of India, Pune for developing & producing engines of lower power ratings (50-500 kw).

54. Your Company has identified a few countries to explore & pursue export potential of building warships. The Company has signed MoU with M/s. Elbeit Systems, Israel, for manufacturing of Unmanned Surface Vessels (USVs) under make in India initiatives, These USVs will be multirole, smaller & Indian Coast Guard. Your Company has also signed a MoU with M/s. CDCL, Bhutan, for supply of Bridges & related parts to that country where good market exists as per the estimates given by M/s, CDCL.

IMPETUSTO MICRO, SMALL AND MEDIUM ENTERPRISES

55. Your Company has been providing increased thrust on enhancing procurement from Micro, Small and Medium Enterprises (MSMEs) and has implemented the Public Procurement Policy for SMEs issued by the Ministry of MSMEs. Your Company extends technical guidance and requisite support to these industries wherever required. Your Company is regularly conducting MSME Vendor Development programmes in association with CII and MSME Ministry, Govt, of West Bengal, Our quality control personnel visit these industries to assist and ensure that the quality of the products meet the requisite standards.

55. During the financial year 2017-18, your Company procured items worth Rs.102.25 crore from the SMEs, which is 25.84% (approx.) of the total annual procurement value (considering exclusions as applicable for SMEs), List of items reserved for SMEs procurement is available on your Company''s website at:http://www.grse.in/mse_notice_website.pdf.

MANPOWER

57. The total Manpower strength under permanent roll of the Company as on 31 Mar 18 was 2214 including 482 Officers, In addition, 04 tradesmen are on roll engaged as journeyman. During the previous year ended 31 Dec 17, a total of 2254 employees were borne in the roll of the Company including 02 employees as journeyman. Statements showing the representation of SC/ST/Women etc. as on 31 Dec 17 as well as the total recruitment made during the period from Jan to Dec 17 are given at Appendix - "A" & "B",

58. Your Company has no employee covered under Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules. 2014.

STATUTORY AUDITORS

59. The Comptroller & Auditor General of India have, under Section 139(5) of the Companies Act, 2013, appointed M/s, G P Agrawal & Co,, Chartered Accountants, Kolkata, as the Statutory Auditors of your Company and M/s. Sinha & Ghelani, Chartered Accountants, as Branch Auditors for the Diesef Engine Plant, Ranchi, for the year 2017-18.

60. 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 2017-18 will be appended on receipt,

COST AUDITORS

61. 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 2017-18 to conduct audit of cost records maintained by your Company.

SECRETARIAL AUDITOR

62. Pursuant to Section 204 of the Companies Act_r 2013, your Board appointed Mls, Vinod Kothari & Co., Practicing Company Secretaries, to conduct Secretarial Audit of the Company for the FY 201718, The Secretarial Audit Report of M/s, Vinod Kothari & Co. is placed at Appendix - "C" to this Report.

CORPORATE GOVERNANCE

63. Your Company is committed to maintain the highest standards of corporate governance in all spheres of business activity carried out by your Company and continues to lay strong emphasis on transparency, accountability and integrity. Your Company has implemented the Guidelines on Corporate Governance for CPSEs issued by Department of Public Enterprises (DPE) vide OM No. 18(8)/2005-GM dated 14 May 2010, both in letter and spirit, The Report on Corporate Governance along with Compliance Certificate from a Practicing Company Secretary, as required under the said Guidelines has been placed at Appendix-"D" to this Report.

MANAGEMENTDISCUSSION & ANALYSIS REPORT

64. The Management Discussion & Analysis Report as required under the DPE Guidelines on Corporate Governance for CPSEs is placed at Appendix "E” to this Report.

DISINVESTMENTANDINITIALPUBLICOFFER

65. The Cabinet Committee on Economic Affairs, on 12 Apr 2017, has approved disinvestment of the Company''s shares through IPO and its subsequent listing.

66. Pursuant to the proposed IPO, your Company was converted to a Public Limited Company vide Shareholders'' resolution at the 101 Annual General Meeting of your Company held on 25 Aug 2017, Pursuant to the conversion, Ministry of Corporate Affairs, Government of India, issued a new ''Certificate of Incorporation¹ dated on 17 Nov 2017, giving effect to the conversion of your Company from Private Limited to Public Limited under section 18 of the Companies Act, 2013.

67. The Draft Red Herring Prospectus (DRHP) of your Company was filed with SEBI on 26 Mar 2018,

BOARD OF DIRECTORS

68. The following four (04) Directors ceased to be Members of the Board of your Company during the period under review:

(a) Cmde RatnakarGhosh, IN (Retd.) Director (Shipbuilding)

(b) Shri Swapan Kumar Mukherjee Part-Time Non-Official (Independent) Director

(c) Cmde M.Jitendran, IN (Retd,) Part-Time Non-Official (independent) Director

(d) Shri Ajay Bhattacharya Part-Time Non-Official (Independent) Director

69. The Board of Directors of your Company placed on record its deep appreciation for the valuable contributions made by the outgoing Directors during the tenure of their association with your Company.

70. The Board welcomed the appointment of the following five (05) new Directors during the financial year 2017-18:

(a) Shri Bharat Bhushan, FCA

Part-Time Non-Official (Independent) Director

(b)Smt. Kanwaljit Deol, IPS (Retd,)

Part-Time Non-Official (Independent) Director

(c) Cmde Sanjeev Nayyar, IN (Retd.)

Director (Shipbuilding)

(d) Dr. Ajai Bhandari, IAS (Retd.)

Port-Time Non-Official (Independent) Director

(e) RAdm Inder Paul Singh Ball, AVSM, VSM, IN (Retd.)

Part-Time Non-Official (Independent) Director

71. Your Company has received declarations from all the Independent Directors of your Company confirming that they meet the criteria of independence as prescribed under both, the Companies Act, 2013 and the Guidelines on Corporate Governance for CPSEs issued bythe Department of Public Enterprises.

MEETINGS OF THE BOARD

72. Six (06) meetings of the Board of Directors were held during the year under review. For further details, please refer to the Report on Corporate Governance placed at Appendix -“D” to this Report.

DISCLOSURES

CSR & Sustainability Committee

73. The CSR & Sustainability Committee of the Board of Directors comprises of Smt. Kanwaljit Deol, Independent Director, as Chairman, Director (Shipbuilding) and Director (Personnel) as Members. For further details, please refer to the Report on Corporate Governance placed at Appendix - “D” to this Report,

Audit Committee

74. The Audit Committee of the Board of Directors comprise of following Directors;

1	Shri 8harat Bhushan	Chairman	Part-Time Non Official (Independent) Director
2	Smt. Kanwaljit Deol	Member
3	RAdm Inder Paul Singh Bali, IN (Retired)	Member
4	Cmde Sanjeev Nayyar, IN (Retired)	Member	Director (Shipbuilding)

For further details, please refer Report on Corporate Governance placed at Appendix-"D" to this Report. It is further stated that all the recommendations made by the Audit Committee were accepted by the Board.

Vigil Mechanism

75. 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 Company''s 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, he 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 Company''s website at the following link: http://grse.in/pdf/investors/Whistle%20Blower%20 Policy, pdf.

EXTRACT 0 F AN NUAL RETU RN

76. The extract of Annual Return of your Company for the FY 2017-18 in Form MGT-9, as required under Section 92(3) and Rule 12 of the Companies (Management and Administration) Rules, 2014 is appended as Appendix-“F" to this Report.

DIRECTORS''RESPONSIBILITY STATEMENT

77. Pursuant to the requirement under Section 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, 2018, 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 from the same;

(b) The Directors had 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, 2018 and of the profit of your Company for the year ended on that date;

(c) The Directors had 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 had prepared the annual accounts on a ''going concern'' basis; and

(e) 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.

RISKMANAGEMENT AND INTERNAL FINANCIALCONTROLS

78. Your Company has developed a risk management framework to strategize, monitor, identify, assess and mitigate risks that may potentially impact your Company''s performance. As part of this framework, your Company has adopted a comprehensive Risk Management Policy in line with the DPE Guidelines on Corporate Governance for CPSEs. The Policy aims towards a comprehensive risk management system consisting of a defined process of risk management and methodology of identification, assessment response, monitoring and reporting of risks. The Policy provides the management and Board an assurance that key risks are being properly identified and effectively managed. Under the Policy, a Functional Director level Committee called Risk Management Steering Committee (RMSC) has been constituted, This Committee is assisted by the various Risk Management Committees (RMCs) formed under the respective functional heads (CGMs, GM, HoDs) which evaluates the risks identified in their respective areas of operation,

79. To ensure regulatory and statutory compliance as well to provide corporate governance, the Company has adequate internal systems and processes in place for smooth and efficient conduct of business. The Company has SAP-ERP as the IT backbone, with commensurate built-in controls, checks and balances at various levels of operations. The system of Internal Control comprises well defined organization structures, pre-identified authority level and procedure issued by management covering alt vital and important areas of activities. The Company has an Internal Audit Department, which monitors compliances of Company’s procedures, and policies with well-defined annual audit program and significant audit observations are reported to the Audit Committee of Board of Directors, C&AG also conducts propriety audits. Significant audit observations and follow up actions thereon are reported to the Audit Committee. The Audit Committee reviews adequacy and effectiveness of your Company''s internal control environment and monitors the implementation of audit recommendations,

CONSERVATION OF ENERGY

80. (a) Steps taken towards better Conservation of Energy

As a part of commitment of your Company towards energy conservation for reducing the impact of atmospheric climate change, continuation of various measures as implemented by your Company in FY 2017-18 are listed in the succeeding paragraphs. All these actions have facilitated in reducing consumption of electrical energy (i.e, conventional energy) as well as reduction in greenhouse gas emission:

(i) The average power factor of the Shipyard is maintained at 99.10. Performance is being constantly monitored to maintain the optimum power factor and consumption of power to reduce demand and emission of GHG indirectly. To ensure step less control of system power factor thyristorised automatic power factor correction system is introduced in sub-stations.

(ii) To operate at optimum energy efficient manner, the Shipyard conducts energy audit at ail its units every year to optimize consumption of fuel i.e, coal, electricity, petroleum etc. and implement the recommendations of the said audit,

(iii) Other energy conservation measures like introduction of battery operated material handling equipment to reduce noise and air pollution as also oil conservation have been taken in the Shipyard.

(iv) Energy efficient induction luminaires and sensor based LED light are now being introduced for illumination of new offices and departments; existing conventional fittings are also being replaced by said energy efficient luminaires, This had effectively reduced power consumption cost from 23499.84 Kwh to 5179.20 Kwh annually at Main Works for FY 2017-18.

(v) Solar powered street lighting system is being used to cut down energy consumption resulting a recurring saving of energy cost of the yard. Your Company has taken such energy conservation initiatives in local schools as a CSR and sustainability activity.

(vi) Through various energy efficient initiatives undertaken, your Company is being able to bring down the electricity consumption by 20% in FY 2017-18 and thereby reducing the energy bill value by 20% (amounting to Rs.10 lakh) than that of previous financial year This has resulted in reduction of environmental impact through green-house gas emission by 609 Tons of CO_; equivalent.

(vii) Consistent effort to minimize distribution loss in compressed air and water supply system has been undertaken as part of conservation of energy,

(viii) Use of Bureau of Energy Efficiency accredited star rated window AC, ceiling fan, blower / man cooler and geyser. In AC plants, solid state control system, energy efficient compressors are introduced.

(ix) Using battery operated material handling equipment is also a part of the energy conservation initiative. Calibration of measuring instrument were also done from NABL accredited Lab to Measure Miscellaneous parameter to monitor Energy Loss,

(x) Replacement of bulbs in office spaces in all unit in FY 2017-18 has saved 15% from earlier consumption.

(xl) Replacement of 480 KVAR APFC panel reduced demand 53.61 KVA i.e. Rs.11,793,74 monthly and Rs.1,41,524.88 annually with effect of P.F 0,99 at Main Works.

(xii) Replacement of aged HT/LT cables as per BIS standard and CT/PT breakdown time have been minimised and to achieve good voltage level as a protection of devices and their life,

(xiii) Efforts are continuing to minimize distribution loss in compressed air and water supply system. Your Company proposes to bring all the air compressors, pumps and utility vehicles under AMC for maintaining and repairing which would increase the efficiency of all the compressors and pollution can be further reduced due to periodical maintenance.

(b) Steps taken by your Company for utilising alternate sources of energy

Solar energy

(i) Being committed to promote green energy under sustainable development on long term basis for reducing the impact of atmospheric climate change, your Company has already embarked upon rooftop solar power plant since 2014-15.

(ii) So far, your Company has installed total 600kWp rooftop Solar Power Plant at Main Works Unit. In FY 2017-18, total generation of power from the above 600kWp rooftop Solar Power plants was 6.94 lakh unit (KWH) out of which 0.7 lakh unit (KWH) was injected to CESC Grid. This enabled your Company to reduce consumption of conventional electrical energy and also saving in electricity bill amounting to the tune of Rs.55 lakh. Further, this facilitates reduction in emission of greenhouse gas by about 650 ton.

Utilising Bio-Gas

(iii) Bio-Gas Plant of 150 kg/day capacity for recycling / conversion of food & kitchen waste (from the canteens) has been installed at Main Works Unit from which Bio-Gas will be generated amounting to 17 to 20 cubic meter per day (equivalent 8 to 10 kg LPG/day) at full feed. Generated Bio-Gas will be utilised for cooking purposes in the canteen and enable saving of Rs.2 lakh annually,

Other Initiatives

(iv) By changing of translucent ! transparent corrugated roof sheets in the main machinery workshops by Yard Modernisation Department, the natural sunlight enters from 0500 Hrs. to 1700 Hrs. inside Engineering complex and other shops. Hence usage of considerable no. of overhead flood lights fitted on roof has been considerably reduced during daytime thus saving in electricity.

(c) Capital investment on energy conservation equipment

Capital investment made by the Company for installing the 100KwP grid interactive solar power plant and Bio-gas Plant during theyear under review is Rs.46 lakh and Rs.15 lakh (approx.), respectively.

TECHNOLOGY ABSORPTION

81. Your Company has a robust Research & Development Plan. In the Central Design Office (CDO) a dedicated multi-disciplinary team is continuously working towards developing various concept designs for vessels that can cater to the future requirement of Indian Navy, Generic design platforms are also being developed which can cater to requirements of auxiliary vessels like survey and research, pollution control etc., front-line warships like frigates, corvettes and vessels required for inland and coastal security. The total Research & Development expenditure during the year 2017-18 was Rs.8.75 crore.

82. While working with the domestic and foreign vendors on various projects, your Company has developed In-house competency in contemporary and emerging technology avenues like fem analysis of Composite Material in HYPERWORKS. Your Company is the 1"’ Defence shipyard in India that has developed in-house design and analysis capabilities in composite material and has built the first warship with Composite superstructure. Central Design office has developed considerable understanding on Hydrodynamic optimization using Computational Fluid Dynamics (CFD) during execution of various collaborative projects with IIT Kharagpur. Similar capacity is being developed to become self-sufficient in developing RCS optimized Hull form, Global strength & vibration assessment using FEM etc.

ISO CERTIFICATIONS

83. The three (03) ISO Certifications for your Company pertaining to Integrated Management System, namely, ISO 14001:2004 (Environment Management System). BS OHSAS 18001:2007 (Occupational Health & Safety Assessment Standard) and EN ISO 50001:2011 (Energy Management System) were revalidated for a period of three (03) years (upto Year 2020) on successful completion of ''Audit and Certification Procedures’ by the world renowned certification body TUV NORD, Germany.

ERP&IT

84. The highlights of the year under review in the area of ERP& IT are as follows:

(a) Amplification of SAP Production Modules has been restructured and capturing information at different stages of production process to obtain real-time monitoring of Project Progress, Cost involved, Alert, Tracking and cost estimation for new projects with advance MIS Dashboard.

(b) Huge number of Paper Documents have been digitized and stored at Central Location for ease of information availability towards Paperless Office, Your Company has implemented SAP for core processes and Microsoft Share Point as Document Management System for all non-core processes since 2011 to achieve Paper Less Secured Access Operations, Your Company has targeted to achieve 100% by 2019.

(c) All Contract Labours are under Biometric Access Control for Regular IN/OUT with centralized validation of Gate Pass.

(d) Your Company has gone for major companywide CCTV implementation.

(e) Virtual Reality Lab has been implemented for 3-D Simulation and nearto Digital Manufacturing.

(f) Your Company has successfully converted Finance module to GST compliant.

(g) Bill Tracking System has been implemented for ease of Bill Monitoring by all stake holders with automated email alerts,

(h) Modules being developed for app-based online / mobile Transport Monitoring and Tracking System.

(i) Your Company’s Cyber Security has been certified by Cert-ln empanelled auditor.

(j) Your Company is in process to implement PDM-PLM for P-17A Project to collaborate with MDL and DND.

e-PROCUREMENT

85, e-Procurement is the key component of "Mission Mode Project” under National e-Governance Plan, It has several advantages such as cost saving, saving in time, safety, security, speed and above all, transparency in achieving efficiency in procurement. The following milestones were achieved during the year under review:

(a) Value of materials procured through e-mode has been Rs. 1,180.55 crore. The Materials Department of your Company achieved 99.16% of its total procurement through e-procurement mode.

(b) Wider participation of vendors in e-procurement has been achieved. Number of Vendors registered with your Company''s e-procurement system rose from 1990 to 2080 during 2017-18, an increase of nearly 4.52%.

(c) 760 Nos. of tenders have been floated through e-procurement mode during the financial year 2017-18.

(d) Approximately 200 Nos. of vendors obtained on-line training on e-procurement procedure during the year.

QUALITY ASSURANCE

86. QA department has taken proactive steps in formulating Quality Assurance Plans (QAP), Quality Inspection Procedures (QIP) and Quality Control Reports (OCRs) for Integrated Construction of P-17A project by taking all stakeholders like production and WOT on-board. This procedure empowers production to take higher autonomy and responsibility for quality. Inspections are being progressed as per the newly formulated processes satisfactorily. Your Company continues to maintain its ISO 9001:2015 in Ship Building, Ship Repair and Ship Design rating. Additionally, RBD has also been upgraded to ISO 9001:2015.

VENDOR DEVELOPMENT

87. in addition to infrastructure and technological growth, the key to successful shipbuilding is having a robust Vendor Base. Your Company has taken-up Vendor Development as a thrust area in recent years and has increased its Vendor Base from 1746 in 2014-15 to 2057 in 2017-18. As part of Government initiatives to encourage Public Private Partnership through outsourcing, your Company has planned a strategy of identifying and developing competent vendors and private shipyards who will adopt the Modular & Integrated Construction technology, The Shipyard will also be tapping the idle capacities of the private shipyards for undertaking part of the construction of these ships.

88. The Micro & Small Enterprises (MSE) Vendors registered with your Company increased from 319 Nos. (as on 31 Mar 2013) to 632 Nos. (as on 31 Mar 2018). Your Company has set a challenging target to increase the vendor base for Micro & Small category vendors by 5% during FY 2018-19.

89. Your Company has analysed complete production activities, identified core and strategic operations and undertaken comprehensive mapping of activities to be outsourced. Accordingly vendor development initiatives like organizing Vendor Meet, participation in Vendor Fairs, Melas, programs, seminars, conferences, conclaves organized by CII_T FICCI. MSME-OI, BCCI, NS1C, FOSME, other Defence Shipyards, State / Central Governments, Industry Defence Linkage, etc, has been undertaken to induct technically competent and financially capable vendors from across the country for outsourced jobs, Long term association, joint ventures, strategic partnership etc. with interested business associates are being explored. The net outsourcing content of the Shipyard has been recorded as 58% confirming achievement of fairly high indigenization levels in warship construction projects executed by the Shipyard in FY 2017-13.

90. Your Shipyard participated in “National Vendor Development Program for Micro & Small Enterprise" organized by Cll at New Delhi on 05 July 2017 and “State Level Vendor Development Programme" organised by FOSMI at Kolkata on 15 Sep 2017 to explore more technically competent SMEs and avail their services for your Company''s ongoing / future projects fulfilling the "Make in India" concept of the Government of India,

91. During the year under review, your Company participated in several National & State Level Vendor Development Programs initiated by Ministry of MSME and program organized by MSME-DI, NSIC. in search of technically capable & interested SMEs to avail their expertise in your Company''s business growth and to fulfill the "Make in India" initiative of the Government of India.

92. The Shipyard organized a special Vendor Development Programme exclusively for MSME SC/ST entrepreneurs on 28 Nov 2017. The executives from MSME Development Institute, Kolkata, attended the said event represented by large number of business houses from different fields, giving positive responses.

QUALITY CIRCLE ACTIVITIES

Quality Circle

93. The concept of Quality Circle is being implemented in various departments of your Company by the IE&P Department. This year 8 (Eight) Quality Circle Teams from the Company had participated in Chapter Convention on Quality Circles 2017 organized by QCFI, Kolkata Chapter, All the eight teams were Ranked GOLD Category.

94. National Convention on Quality Concepts 2017 organized by QCFI Head Quarter was held at Raipur, Madhya Pradesh where 4 (four) Quality Circle teams from your Company participated. Performances of two teams were judged in PAR EXCELLENCE Category and two teams were judged in EXCELLENT Category.

95. ICQCC - 2017 was held at Manila, Philippines, where two QC team from your Company had participated and was judged in the "Gold" Category.

“5-S” Activities of your Company

96. The drive for improving housekeeping at your Company has been undertaken by the IE&P Department under the initiative of workplace Management applying “5-S''^r principles. The three best shops / departments in each area of Production, Production Support and Service Group considering all the units including DEP, Ranchi were awarded the Prizes based on their performance during 2017 on GRSE Day. During 2017, the 5-S Audit was also conducted by IE&P Department, the result published with observations and the actions identified for improvement.

TPM Activities

97. As far as maintenance of machines and other facilities are concerned, the calculation and monitoring of machine availability vis-a-vis the quality of work performed by them is very important. TPM Initiative has been implemented by IE&P Department in three targe shops viz. Ship Building Shop, Plate Preparation Shop and Modem Hull Shop at the Main Unit of the Organization. The TPM concept is initiated at structural shop of FOJ Unit, the efforts are being made to spread this concept across your Company.

SAFETY AT WORK

98. The Shipyard thrives to ensure safe working environment to achieve the objective of zero accident, In order to achieve the same, systematic approach to safety management has been adopted through close monitoring of implementation of safety norms and procedures at work place.

99. In order to upgrade the safety awareness amongst the employees, 47" National Safety Day /Week has been celebrated in all units of your Company during 4-10 Mar 2018 through administering National Safety Council''s Health & Safety Pledge and displaying of Safety Banners at strategic locations of various Units.

100. During the year F,Y. 2017-18, the Shipyard has achieved a Safety Frequency Rate (industrial injuries index) 4,14 as against the last year''s Safety Frequency Rate of 5.98, indicating a marked improvement in the area of Safety Culture of shipyard.

101. For better monitoring and controlling of safety activities, Unit Level Safety Committees have been constituted under the control of the respective Unit Occupier.

HUMAN RESOURCES ADMINISTRATION

Industrial Relations

102. Industrial Relations during the period under review across all the units were more or less peaceful barring few incidents by the operative category of employees on various issues, led by the recognised Union such as ''one day tool down strike'' without any notice, staging of dharna on two occasions against the issue of disinvestment of your Company and other employee related issues.

Major HR Initiatives

Training &Skill Development Initiatives

(a) Capacity Building Initiatives: Your Company has undertaken various initiatives in updating the competencies of its human resources through exposure to various Learning & Development programs organized by premier institutes in India and abroad. The major capacity building initiatives in FY 2017-18 are given below:

(i) Advanced Technical Training Programmes: In FY 2017-18, 17 executives of your Company were sent abroad for advanced training on topics like Integrated Construction, Main Engine, CPP Shafting, Dry Docking and Electronic Control Systems for the P17A project, The Know How Provider (KHP) appointed for P17A project has also conducted On Site Training (OST) modules on PDM-PLM implementation. Weight Management and Ergonomics & HFE during 2017-18, The training was conducted at Company premises where 46 participants from your Company have participated.

(ii) Leadership Development Programme: In order to develop a strong leadership in the company, a 6 days Leadership Development Programme was organized at IIM Calcutta in November 2017 for 30 senior officers of the Company, The course content was customized to address the behavioural competency gaps identified through the Assessment Centers.

(iii) Apart from the above, employees has been nominated to various technical, functional and behavioural programme conducted in-house and through external agencies. This exposure has facilitated in developing their knowledge, skill and attitude.

(iv) Apprenticeship Training under Apprentices Act:

Your Company has increased the intake of Apprentices by 15% over and above the statutory requirement of 2.5% of total manpower strength. Apart from the technical training, personality development and employability skills training was also imparted to the apprentices. Your Company has been declared as "Best Establishment in Eastern Region” in the 98" Regional Skill Competition of Apprentices held in October 2017. In FY2017-18, five (05) GRSE apprentices have excelled by securing 1" and 2 positions in Regional and National level Workskills Competitions.

(b) Benchmarking and knowledge sharing in HR among DPSUs YourCompany took the initiative to develop a common HR platform / forum of DPSUs with a view to share the best HR practices as also discuss topical HR issues relevant to DPSUs. Your Company hosted the inaugural meet at Kolkata on 08-09 Mar 2018, Executives from various DPSUs viz, HAL. BEL, MDL, BDL. MlDHANi, HSL and GRSE participated in the Meet.

(c) Culture Building Initiatives

(i) HR Newsletter: Your Company''s HR Department has taken an endeavour to publish HR Newsletter on a fortnightly basis since Sep 2017 towards dissemination of various information, knowledge and better understanding of happenings inside and outside the organization. With the tagline - ''Realizing Business Strategy through People''. the Newsletter aims to create an informed and empowered Human Capital and building a positive wok culture, thereby contributing to the growth and excellence of your Company.

(ii) Sports: With an objective to inculcate team spirit and involvement among employees and in order to improve work-life balance, your Company conducted the Annual Sports Event 2018 from 12 Feb 2018 to03 Mar 2018 with total of 9 events, viz. Cricket, Badminton, Volleyball, Table Tennis, Chess, Carom, 50 meters race, 100 meters race and musical chair. The annual sports event 2018 witnessed huge participation and created immense enthusiasm not only among participants but also among other employees.

(iii) Swachh Bharat Pakhwada: As a part of Swachh Bharat Mission, Swachhta Pakhwada 2017 was celebrated in your Company from 01 - 15 Dec 2017. Your Company has conducted various activities during the fortnight such as training to employees on cleanliness and hygiene, organizing mini marathon to spread awareness on cleanliness and hygiene, painting and essay competition for employees'' families on topics of cleanliness, tree plantation etc. The aforesaid activities during the Swachh Bharat Pakhwada has created awareness amongst the employees, their family members and the local community regarding the importance of cleanliness and hygiene in their homes as well as in their work life.

Persons with Disabilities (PwD)

103. The Company extended all the relaxations/ concessions to the employees with disabilities as per the Government directives, During the year 2017-18, the Company has recruited 04PwDs,

Empowerment of Women

104. The Women representation is 4.8% of the total strength in the Company. GRSE WIPS Chapter regularly interacts with Eastern Region WIPS Chapter and Company nominates women employees to participate in different workshops conducted by the WIPS wing of various CPSUs in and around Kolkata.

CORPORATE SOCIAL RESPONSIBILITY

105, Corporate Social Responsibility (CSR) is an integral part of your Company''s corporate philosophy and your Company is committed to grow its business in a socially responsible way, Towards this end, your Company has adopted a comprehensive CSR Policy that defines the framework for your Company''s Social Initiatives Programme. The Policy identifies the focus areas of your Company''s CSR and Sustainability activities to benefit the marginalized sections of the local community through different projects that enhance income through creation of sustainable livelihood opportunities and improving the quality of life. Your Company places thrust on the areas of health care, education & skill development and community development under CSR and conservation of natural resources and energy efficient initiatives under Sustainability initiatives. Your Company would also undertake other need based initiatives in compliance with Schedule VII to the Companies Act, 2013. All social interventions are identified keeping in mind the needs and requirements of the community beneficiaries for whom these interventions are intended to be implemented.

106. Your Company''s Policy on Corporate Social Responsibility can be accessed on its website link at http://grse.in/pdf/investors/GRSE%20Policy%20on%20Corporate%20Social%20Responsibility%20and %20Sustainability.pdf. The Annual Report on your Company''s CSR activities as required under the Companies (Corporate Social Responsibility Policy) Rules, 2014 has been appended as Appendix - "C" to this Report.

OFFICIAL LANGUAGE

Official Language Implementation Committee

107. Official Language implementation has improved considerably during the period under review. Quarterly meetings of Official Language Implementation Committee were held under the chairmanship of Chairman & Managing Director, to review the progress made by various Units and Departments,

Rajbhasha Awards

108. (a) In recognision of the excellence in Implementation of Official Language in the Company, your Company bagged two prestigious awards detailed below:

(i) 2^nd Prize in the National Award ''Rajbhasha Kirti Puraskar'' for the year 2016-17 from the Honorable President of India, which is being awarded to the Company for the fifth time in a row.

(ii) Rajbhasha Shield for the year 2016-17 by Town Official Language Implementation Committee which was presented by the Honorable Governor of West Bengal,

(b) Company''s Hindi Magazine “Rajbhasha Jagriti" was conferred with the 1^st prize by Town Official Language Implementation Committee presented by Honorable Governor of West Bengal.

(c) DGM (OL), GRSE, received appreciation letters by Honorable Governor of West Bengal for her contributions in editing the Rajbhasha Jagriti Magazine and for Excellence in Implementation of Official Language in the Company.

Efforts to Promote Use of Official Language

109. In order to promote use of Official Language in the Company, the following activities had been undertaken:

(a) Celebration of Hindi Day / Month

(b) Publication of 15^th edition of Hindi Magazine, "RajbhashaJagriti¹;

(c) Hindi Computer Workshops

(d) In-House Hindi Training

(e) Implementation of various incentive schemes

(f) Books for Hindi Library

(g) Hindi competition in schools

(h) Annual Meet of Nodal Officers

(i) Induction Programme for newly joined employees.

Preparation of your Company''s Shipyard Glossary

110. Five Day Meeting was organised with the help of Commission for Scientific and Technical Terminology for preparation of Shipyard Glossary in your Company. On completion, the same will be used on Defence Shipbuilding.

Inspection by First Sub-Committee of Committee of Parliament on Official Language

111. Inspection regarding Implementation of Official Langage in your Company was held on 27 Oct 2017 by First Sub-Committee of Committee of Parliament on Official Language. The Committee appreciated the progress made by your Company to implement Official Language. However, they have also suggested few things for further improvement.

PUBLICITY* PUBLIC RELATIONS

112. As a measure towards Brand Building, Publicity and Public Relations, your Company has participated & organised the following major events:

(a) Participated in the LAAD - 2017 (Latin American Aerospace & Defence Industry Exhibition) held at Rio, Brazil from 04-07 Apr 2017.

(b) Participated in the IMDEX - 2017 (International Maritime Defence Industry Exhibition) held at Changi Exhibition Centre, Singapore from 16 -18 May 2017.

(c) Participated in the DSEl - 2017 (Defence & Security Equipment International Exhibition) held at London, United Kingdom from 12 -15 Sep 2017.

(d) Participated in the 3 days'' "CSR Fair" organised by Department of Public Enterprises at Pragati Maidan, New Delhi from 04-06 May 2017.

(e) Participated in ‘The Indian National Exhibition-Cum-Fair 2017'' on the theme ’Science & Technology for National Development & Make in India'' organised by Bengal Human Resource Development Foundation at Kolkata from 17 - 20 Aug 2017.

(f) Participated in the ''21'' National Defence Exhibition'' on the theme India progressing towards a great Nation¹ organised by Central Calcutta Science & Culture Organisation for Youth at Kolkata from 24- 27 Aug 2017.

(g) Participated in the ''Biz Bridge - 2017'' Exhibition and Conference on ''B2B session¹ organised by Cl I, Kolkata from 15-18 Nov 2017.

(h) Participated in the ''National Level Vendor Development Programme cum Industrial Exhibition'' organised by MSME Development Institute, Kolkata under Ministry of MSME, Gol at MSME - Dl Campus, Kolkata from 22 - 24 Nov 2017, The theme of the exhibition was "Marketing Support to the MSEs of the country”

(i) Organised the State Level Vendor Development Program for MSEs Entrepreneurs of SC/ST Category on 28 Nov 2017. Representatives of thirty (30) business houses attended the event and evinced keen interest in pursuing business opportunities in your Company.

(j) Participated in the ''13^:’ Jatiya Sanhati Utsab - O - Bharat Mela - 2017'' Exhibition held at Kolkata from 14-18 Dec 2017.

(k) Participated at ''Vendor Development Meet¹ at Kalaivanar Arangam, Chennai Tamil Nadu from 18 - 19 Jan 2018. This exhibition was jointly organised by Ministry of Defence (Defence Production) DPSUs and OFB,

(I) Participated in the ''Defence Indigenisation Expo'' jointly organised by Coimbatore District Small Industries Association (COD1SSIA) and Ministry of Defence (MoD) at Coimbatore, Tamil Nadu from 05-06 Mar2018.

IMPLEMENTATION OF RTI ACT

113. Implementation of RTI matters is being complied in line with the Right to Information Act, 2005. During the year 2017-18, a total of 63 RTI requests were received, while the opening balance from previous year was 8 RTE Applications. A total of 68 RTI applications were replied to during the year, and remaining 3 RTI Applications were taken as carry forward for the year 2018-19. In case of RT! appeals, 13 appeals were received during 2017-18 and 4 appeal was as opening balance from previous year. A total of 13 RTI appeals were decided and replied to, while 4 RTI appeals were carried forward for the year 2018-19. The Quarterly Returns have been uploaded on the CIC''s website with in due date by the CPlO and Assistant CPIO, Also, the quarterly returns in the DOPT website are being uploaded as per schedule.

PUBLIC GRIEVANCES

114. Prompt acknowledgement is issued upon receipt of Public Grievances and the matter is resolved by thorough examination of facts of the case with due diligence. During the year under review, a total of 16 Public Grievances were received and 17 were resolved, {1 public grievance was carried forward from previous year 2016-17). As all the pending grievances were resolved during 2017-18, there was no grievance to be carried forward for the year 2018-19 for its resolution, Details of the Grievance Committee have been uploaded on the Company''s website with the provision of a link to the PG Portal to enable the citizen to file grievances online.

VIGILANCE ACTIVITIES

115. The main thrust of the Vigilance Department is to ensure transparency, fairness & probity in all spheres of activities of the Company. Towards this end, focus of the department was on both, predictive & preventive vigilance during the year. Many spheres of activities were taken up and various processes were carefully observed, analysed and scrutinised to ensure that the systems of checks & balances are working as per the required parameters and there are no leakages and loopholes in the system. In many cases, the officers were counselled and advised to improve their behaviour and manner of carrying out various official activities instead of going for harsher punitive measures. Apart from the above, the following activities were also carried out by the Vigilance Department during the year:

(a) Investigations were conducted regarding complaints received from various sources and appropriate actions were taken.

(b) As a preventive measure, regular & surprise inspections and verification of files were carried out. Annual Property Returns filed by the officers were scrutinized. Vigilance status of officers was assessed at various stages. Identified Sensitive Posts in the Company & action initiated is In a phase manner for rotation of officers. The implementation of actionable points is being monitored through quarterly reports and submitted to MoD informing the status of action taken.

(c) Structured meetings with C&MD were held at regular interval to appraise the status of vigilance cases.

(d) Agreed List was also drawn up with the CBI and close liaison was maintained withtheCBI,

(e) Suggestions for system improvements have been made to the management and the same are being followed up to ensure that they are implemented,

(f) Induction Training Programme was carried out for newly joined officers in line with Vigilance Manual,

(g) Company observed Vigilance Awareness Week during 30 Oct - 04 Nov 2017. Sri A. K. Bhatacharya, IAS (Retd.) / Ex- Independent Director and Sri S. K. Sadangi (IRRS), CVO, Kolkata Port Trust., presented their valuable comments in the seminar organised on 31 Oct and 02 Nov 2017, respectively.

(h) GRSE observed Vigilance Awareness Week during 30 Oct to 04 Nov 2017 in relevance to the theme both within the organization and outreach activities for citizens / public. The activities within the organization include display of Banners and Display of Anti-Corruption themes in various Units and departments, taking of Integrity Pledge by employees, distribution of pamphlets on preventive vigilance activities, conducting workshops and sensitizing programmes for employees and other stake holders on policies / procedures of the organization and preventive vigilance measures. Outreach activities for public / citizen include display of banners at prominent places. E-integrity pledge was administered with a view to participating in fight against corruption. Competitions were held among the employees and School & College students to spread the message on corruption & its ill effects. Bulk e-mail was sent to vendors with the message to participate in the fight against corruption by taking e-Pledge inCVC website.

(j) Took active part in the Vigilance Study Circle, Kolkata Chapter.

(j) Vigilance Manual 2''"^! edition has been prepared & published, Vigilance Manual 2018 (as observed during Inter organization MOD Audit) was approved by CMD and circulated among employees.

(k) Inter Organization Auditing was taken up as per MOD guidelines.

116. The overall objective of vigilance activities has been to encourage transparency in the organization. The other activities of Vigilance Department are to ensure the existence of a corruption-free environment and also to ascertain that the various guidelines of the CVC, MOD and DPE etc. are complied with, The role of the CVO is to guide the management to achieve the various objectives laid down in the above mentioned lines.

PRESIDENTIAL DIRECTIVE

117. A Presidential Directive has been received from the Department of Defence Production, Ministry of Defence, Government of India, vide Order No. 11(110)/2017/GRSE/D(NS) dated 09 Jan 2018 under the provisions contained under Article No. 318 of the Articles of Association of the Company for implementation of pay scales, fitment formula, DA Guidelines, ceilings on perquisites etc, for Board Level and below Board Level executives and non-unionised supervisors in accordance with DPE circulars dated 03 Aug 2017 and 07 Aug 2017, The revised pay scales for executives and non-unionised supervisors have been implemented.

GENERAL

118. 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 Board''s 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.

DISCLOSURE UNDERTHESEXUALHARASSMENTOF WOMEN AT THE WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013

119. In pursuance of Section 4 of ’The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013'', the Internal Complaints Committee operating in the Company has been reconstituted on 18 Aug 17 with an external independent member who is a person familiar with the issues relating to sexual harassment,

120. In accordance with section 21 of ''The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013’ and rules framed thereunder, the following details are submitted for the calendar year 2017:

(a) Number of complaints received during the year: Two (02)

(b) Number of complaints disposed-off during the year: Two (02)

(c) Number of complaints pending for more than ninety days: Nil

(d) Number of workshops or awareness programme against sexual harassment carried out: Two (02)

(e) Nature of action taken by the employer: One complaint was disposed-off through conciliation. Enquiry was held for the other complaint and based on the enquiry report submitted by the Internal Committee, punishment was awarded in accordance with the applicable service rules.

ACKNOWLEDGEMENTS

121, 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 Ministry of Surface Transport, Govt, of India as also to the Governments of West Bengal, Jharkhand and various other States, for their continued cooperation and valuable support, Your Directors are particularly grateful to the Indian Navy and Coast Guard Headquarters, Ministry of Home Affairs, Ordnance Factory Board, Kolkata 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 cooperation and positive approach of the Warships Production Superintendent and his dedicated team under whose watchful eyes our ships are being built Also, we thank all classification societies, in particular, IRS & ABS, who have ensured quality and adherence to the required standards.

122. 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, Ex-offico Member of the Audit Board, Bengaluru, Principal Controller of Defence Accounts (Navy), Mumbai, Controller of Defence Accounts (Navy), Kolkata, Registrar of Companies, Company Law Board and the Department of Public Enterprises.

123. The Directors wish to place on record their appreciation to its Statutory, Cost, Secretarial and Internal Auditors, Company 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

(V K Saxena)

Kolkata, Rear Admiral, IN (Retd.)

Dated: 22^nd June, 2018 Chairman & Managing Director