Dear Members,

On behalf of the Board of Directors, it gives me immense pleasure in presenting to you 90th Annual Report together with the audited financial statements of the Company for the year ended 31 Mar 2023 and reports of the Statutory Auditors' and the Auditor General of India thereon.

1. Second Ship of Project Destroyer (P15B), ‘Mormugao' was delivered on 24 Nov 2022 & commissioned on 18 Dec 2022 by Hon'ble Raksha Mantri, Shri. Rajnath Singh.
2. Fifth Scorpene Submarine of Project 75, ‘Vagir' was delivered to the Indian Navy on 20 Dec 2022 and commissioned on 23 Jan 2023 by Admiral R Hari Kumar, PVSM, AVSM, VSM, ADC Chief of the Naval Staff.
4. Sixth Scorpene Submarine of Project 75 ‘ Vagsheer' launched on 20 Apr 2022.
5. Second Frigate of Project 17A, ‘Udayagiri' and Fourth Destroyer of Project 15B, ‘Surat' launched on 17 May 2022 in the presence of the Hon'ble Raksha Mantri, Shri Rajnath Singh.
6. Fuel Cell Electric Vessel (FCEV) launched on 01 Jul 2022 which is the India's First Indigenous Hydrogen Powered Fuel Cell Electric Boat.
7. 111Third Frigate of Project 17A, ‘Taragiri' launched on 11 Sept 2022 in the presence of FOC-in-C, Western Naval Command.
1. Financial Review
1. Financial Results and Performance Highlights:

(H in crore)

PARTICULARS	2022-23	2021-22 5733.28
Revenue from operations	7827.18
Profit before Tax (Before Exceptional Items)	1429.33	786.66
Profit for the year	1072.72	586.47
Gross Block	1493.57	1363.62
Net Block	1024.33	964.62
Working Capital	1945.34	1345.50
Net Worth	4177.56	3321.36
Finance Cost	6.37	7.16

During the year under review, the Company achieved the Revenue from Operations of H 7827.18 crore as compared to the previous year H 5733.28 crore. The Profit before tax and exceptional items is H 1429.33 crore for 2022-23 as against H 786.66 crore in the previous year. Highest ever Revenue from Operation with a whopping increase of more than 30% over the next best achieved in FY 2021-22. In the history of the Company, it is first time that Company is reporting PAT in four digits with a significant rise of 83% over the PAT of FY 2021-22.

Income Distribution for the year 2022-23 as against previous year is summarised as under:-

INCOME DISTRIBUTION	% 2022-23	% 2021-22
Cost of materials consumed	60.17	58.49
Employee benefit expenses	9.28	12.95
Finance costs	0.07	0.12
Depreciation and amortization expenses	0.88	1.21

3. Consolidated Financial Statement:

The consolidated financial statements of your Company and its associate Company Goa Shipyard Limited (GSL) for the year ended 31 March 2023 prepared pursuant to provisions of section 129(3) of the Companies Act, 2013 and applicable accounting standards together with the Auditors' Report forms part of this Report.

In accordance to Section 129(3)(1) of the Companies Act, 2013 read with Rule 5 of the Companies (Accounts) Rules, 2014, a statement containing salient features of the financial statement of the associate Company is attached to the financial statements in Form AOC-1 (Appendix 1).

4. Capital Structure:

The Authorised Equity Share Capital of the Company as on 31 Mar 2023 stood at H 323.72 crore comprising of 323720000 (Thirty-two crore thirty seven lakh twenty thousand) Equity shares of H 10 each.

The Paid-up Equity Share Capital as on 31 March 2023 is H 201.69 crore comprising of 20,16,90,000 (Twenty crore sixteen lakh ninety thousand) shares of H 10 each. During the year under review there was no increase in the Authorised or Paid up Share Capital. The Company

has not issued any equity shares with differential rights as to the Dividend, Voting or otherwise, during the year under review.

5. Dividend:

The Interim dividend of H 9.10 per equity share (91.00%), amounting to H 183.54 crore was paid in the year 2022-

23 in accordance with the provisions of the Income Tax Act, 1961, as approved by the Board of Directors in their meeting held on 10 Nov 2022. The Board of Directors recommended a Final Dividend of H 138.36 crore which is 68.60% of the paid up share capital. The total Dividend declared for F.Y. 2022-23 is H 321.90 crore, which is 159.60% of the paid up share capital including the interim dividend amounting to H 183.54 crore.

6. Contribution to the Central Exchequer:

Your Company's contribution during 2022-23 to the Central Exchequer by way of Income Tax, GST, IGST on imports and custom duty was H 1216.21 crore.

7. Public Deposits:

The Company has not accepted any deposits from the public and as such, no amount on account of principal or interest on deposits from public was outstanding either at the beginning or at the end of the Financial year 2022-23.

8. Loans, Guarantees or Investments:

Your Company has not given any loans, guarantees or made any investments under section186 of the Companies Act, 2013.

2. Review of Operations:

Your Company recorded a Revenue of H 7827.18 crore for 2022-23 as against H 5733.28 crore of the previous year.

At present your Company is handling two major Shipbuilding projects for the Indian Navy, comprising of four Destroyers & four Frigates each. Besides, MDL is also handling construction of six Scorpene class Submarines for the Indian Navy, out of which five Submarines have already been delivered. Medium Refit cum Life Certification(MRLC) of INS Shishumar is currently at an advanced stage of refit completion and presently undergoing trials.

1. Destroyer Project

Destroyers are potent surface combatants that are contemporary and state- of- the- art platforms. First Destroyer was delivered on 28 Oct 2021 and has been commissioned into the Indian Navy on 21 Nov 2021. Second Ship of the project was delivered on 24 Nov 2022 and has been commissioned on 18 Dec 2022. The highlight of both these deliveries is that both the Ships have been delivered within contractual timelines with out any delay. The Third ship of the project was launched on 20 Apr 2019 and is currently undergoing Sea Trials and is expected to be delivered ahead of the contractual timelines. The fourth Ship of the Project was launched on 17 May 2022 and is currently at an advance stage of outfitting.

To enhance the pace of production and undertake parallel construction for third and fourth ships, your Company has adopted new method of Mega Block outsourcing with enhanced outfitting in the Machinery Compartments where Units / Blocks are constructed simultaneously at two different geographical locations and towed to MDL and joined together, facilitating launching of ship from MDL premises.

2. Frigate Project:

Production of the first ship had commenced on 16 Feb 2017 and the keel was laid on 28 Dec 2017. The first ship was Launched on 28 Sep 2019. Production of Second ship commenced on 27 Feb 2018 and Keel laid on 07 May 2019 and was launched on 17 May 2022. Production of third ship commenced on 31 Jan 2019 and Keel laid on 10 Sep 2020 and was launched on 11 Sep 2022. Production for fourth ship commenced on 22 Jan 2020.

In order to meet the contractual timelines , the Units and Blocks are being built at three (03) different geographical location. These Blocks are being constructed by resorting to the ‘Integrated Construction Methodology' wherein the pre- outfitting of various element are being carried out at the Unit and Block stages itself. The infrastructure of the yard has been modernized for realizing ‘Integrated Construction Methodology' that is at par with the global best practices for warship building. All the four ships are at an advanced stage of outfitting.

3. Submarines Project:

The Scorpene Submarines under construction at MDL are state- of-the art Conventional Submarines being built in collaboration with Naval Group (NG), France.

Sr. No.	Scorpene Submarine	Delivered on	Commissioned on
1	First	21 Sep 2017	14 Dec 2017
2	Second	19 Sep 2019	28 Sep 2019
3	Third	15 Feb 2021	10 Mar 2021
4	Fourth	09 Nov 2021	25 Nov 2021
5	Fifth	20 Dec 2022	23 Jan 2023
6	Sixth	20 Apr 2022	undergoing trials

4. Submarine refit project MRLC:

Medium Refit cum Life Certification(MRLC) of INS Shishumar (SSK class) is at an advance stage of refit completion and is presently undergoing trials.

1. Capital Projects and their progress

3. Your Company has undertaken the construction of Submarine Launch Facility to facilitate load out/ launch of fully constructed Submarine from the Submarine Assembly Workshop at Alcock Yard. The project is expected to be completed by Sept 2023.
4. Your Company has completed the work of "Capital Dredging of Navigational Channel from Kanhoji Angre Wet Basin (MDL Water Front) to Offshore Container Terminal berth of MbPT, Mumbai in Nov 2022. This will facilitate the movement of vessels independent of tide variation.
5. Your Company is committed towards up gradation

/modernization of existing facilities from time to time. The company is replacing existing 12 nos. LL

1. Your Company has undertaken construction of a new state-of-art Security Complex at the main entrance. This G+2 storey building will be equipped with latest Security equipment, Gadgets, Access Control etc. This Complex will be the centralized hub for key MDL departments such as Security, PRO, Safety, Fire, Estate and HSE for effective coordination. The project is expected to be completed by July 2023.

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cranes by new Cranes in a phased manner. Company has also commenced the work of replacement of old Caisson Gate of East Yard Dry dock by new Caisson gate.

6. Your Company, in Jan 2022 completed modernization of MDL Medical & OHS Center to transform it into a ‘State of the Art' Medical Centre in Jan 2022. The Medical Centre is equipped with latest cutting edge Medical Emergency Equipment and OPD Consulting Rooms for Doctors into modern aesthetically designed consulting rooms equipped with modern diagnostic equipment.
7. Your Company has undertaken Setting up of a Centralized Kitchen at Alcock Yard spread over an area of 550 Sqm. The project is expected to be completed by June 2023.
8. Your Company has completed modernization of MDL Guest House located at 17th & 18th floor of Angre House in Dec 2022. The Guest House has a tranquil ambience for pleasant stay of VVIPs/ VIPs/Visitors in Residential Complex and to enable preparation of quality food for the workplace of MDL the kitchen will be equipped with modern cooking equipment having a capacity to cook meals for 2500 personnel under hygienic conditions.

1. Other infrastructure projects:

Your Company is also exploring the possibility for setting up a green field shipyard at its Nhava Yard in a phased manner with short term and long term developments plan. Short term development shall enable MDL to facilitate the immediate use of the existing infrastructure for Shipbuilding and Ship Repair business whereas long term development is to facilitate construction of large size vessels and Submarines including major refits and repairs.

Towards undertaking the construction of advanced and next generation vessels, MDL intends to build a New Floating Dry Dock of 12000T capacity.

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

The progress of all the ongoing projects were affected in 2020-22 on account of pandemic. All efforts are being made to complete ongoing projects as per revised time schedules.

2. Performance against MOUs:

During the year, MDL had signed Memorandum of Understanding (MoU) with Ministry of Defence, Government of India for the financial year 2022-23. The MoU outlines targets and various performance parameters for the Company. The value of production was targeted at H 7654 Crs. Achievement of value of production is H 7,584.03 crs for FY 2022-23. During the year, your Company achieved a Profit Before Tax (PBT) before exceptional items of H 1,429.33 crore. Final evaluation will be carried out post CAG Audit of the accounts for FY 2022-23. The Import Content in VOP for 2022-23 is Rs.2817.72 and for FY 2021-22 IS Rs. 1684.21 Cr.

3. Research & Development

The R&D policy of the Company was approved by the Board in June 2013 and a committee was formed to drive the implementation of the R&D policy, in accordance with the guidelines issued (September 2011) by the DPE on R&D.

Under the "Atmanirbhar Bharat" initiative, MDL has undertaken the challenge of Indigenously Designing and Development of conventional Submarine.

In addition to the Midget Submarine, many other innovative R&D projects are currently in progress at Submarine division through collaboration with Academic Institutions, Start Ups & industry not only in the defence sector but also in the field of energy and

other civil applications. Military products like Expendable Underwater Target (EUT) and Mobile Target Emulator (MTE) which are being developed in partnership with the Industry and are designed to simulate the situation of actual moving submarine for training purpose and for decoy measures.

MDL has developed and launched India's first Fuel Cell powered Electric Vessel (FCEV) as a ‘Proof of Concept'. This will provide a sustainable green technology solution for waterways transportation with zero emissions.

Modern marine transport solutions like Hybrid Electric & Solar boats which can provide an environment friendly options are also under development. This hybrid boat can offer a better alternative to conventional diesel boats. The R&D team is also developing prototype of Lithium Ion Battery system solution for conventional Submarines.

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

Your Company has executed and completed trials for three major R&D projects, through Industry-Academia participation with IIT Madras, Chennai through their incubated start-ups belonging to the Tamil Nadu Corridor. Your Company has ventured into the area of Artificial Intelligence (AI) also through these projects. The product developed through the first Project, AI enabled weld inspection tool with computerized radiography to replace manual radiography (RT), was launched during the Defexpo 2020 at Lucknow. The second project fruitfully concluded by developing an AI enabled robotic weld inspection tool employing phased array technique, and this can replace computerized radiography. The product was at display during Defexpo 2020. An AI enabled Remotely Operated

Vehicle (ROV) is the third project which was also displayed during DEFEXPO 2020. This AI ROV can detect and classify underwater images, thus making the inspections of Ships quick and safe. The products are now 100% operational and are deployed in-house for weld inspections and underwater inspections. Once the AI learning is completed with the current deployment, the commercializing of AI products will be explored.

Your company is exploring development of innovative AI projects with the help of Domestic industry, academia and startups. Some of the major projects includes Artificial Intelligence (AI) enabled Autonomous Underwater Swarm Drones, Artificial Intelligence Based Predictive Maintenance of Ship Equipment and Artificial Intelligence Based Energy Management of Fuel Cell .

The in-house projects as well as projects in collaboration withacademicinstitutionsofreputelikeWelding Research Institute, Trichy, IISc Bangalore and NID are all aimed at solving the unique issues faced by the Ship Yard during the detailed design and integration of complex systems into a front line Naval platform. The specialists' groups functioning under GM(Design) contributes consistently in the areas of structural analysis, ergonomics & HFE, noise & vibration Control, RCS management, propulsion system integration, materials and HVAC.

MDL has validated an innovative Shaft Alignment procedure wherein the propeller shaft line assembly is completed at the Dry Dock itself leading to significant cost saving to the Yard and reduction in the build period of the vessel.

In addition to the above, MDL has developed state-of- the-art Basic Design of Naval vessels, incorporating advanced and optimized equipment, machineries, weapon and arrangement etc.

MDL has initiated implementation of Product Data Management/Product lifecycle Management(PDM/ PLM) for the Frigates under construction.

Your Company has spent approximately 1.13 % of the total income as expenditure towards R&D during the FY year 2022-23. The various projects undertaken under R&D are elaborated in Appendix ‘F'.

1. MDL, having set-up a dedicated ‘Department of Indigenization' in Nov 2015, to provide focused impetus to the Hon'ble Prime Minister's "Make- in-India" initiative has been successfully able to partner with the Indian industry to undertake indigenization/import substitution of various equipment/items which have been imported. Till date MDL has indigenised 27 major items / system

for ships and Submarines. Some of the major items which have been indigenised include the Fire Fighting System for the Magazines (storage compartment on-board warship for Missiles, Torpedoes and other ammunition for the close range weapon system), Soda lime used in the carbon dioxide level monitoring system on-board submarines, Polychloroprene rubber flow straighter is used to bridge the gap between two casing panel so as to maintain the flow of water turbulent free, and GRP Panel provisioned for stream line the structure for a laminar flow and walls around the submarine.

2. Further indigenisation efforts are in progress for Shock mounts for attenuating the vibration levels of on-board machinery of Submarines, Rubber hoses for High pressure system, Ball valves for critical hydraulic system of submarines are presently in progress. There are many more items listed on the Srijan Defence Portal.
3. MDL has hosted 559 imported items of around H2474.31 Crores on the MoD/DDP initiated Srijan Defence portal. The website for the same is website www.srijandefence.gov.in.
4. MDL has contributed to Positive Indigenisation List (PIL) initiatives of MoD/DDP. The PIL-1 contains 05 items, PIL-2 contains 06 items, PIL-3 contains 134 items of MDL. Total 05 items are already indigenised amongst all the PILs and remaining items are in different stages of indigenisation.
5. Indigenisation of Conventional Submarine Design:

As a major leap in line with National Mission of "Atmanirbhar Bharat" and "Make in India" and with an aim of indigenizing the design of conventional submarines, MDL has initiated an ambitious program of Design and Construction of Indigenous Conventional Submarine.

1. Indigenisation of Submarine Equipment:

MDL has proactively pursued indigenous development for items/ equipment for conventional Submarine. 31 out of total 165 submarine equipment have been indigenized. Balance 134 have been tendered and PSO for 26 have been issued including for Main Electric Propulsion Motor, 03 out of 26 equipment have been indigenized for conventional Submarine.

6. QUALITY CONCEPTS
1. 5S (Work Place Management System)

Your Company has implemented 5S (Workplace Management System) in the 20 Workshops/ Stores/Offices.

As a part of sustaining 5S certification, all 20 workshops/offices/stores were re-certified during the period of report for continuation of 5S certification through surveillance audit.

2. Quality Circles

The Quality Circle teams are solving at least three numbers work related problems in a year and are presenting their case studies at Chapter, National and International Conventions and winning Top Most Awards for the company. The awards won by the QC teams in the year 2022-2023 are as under:

• 16 Quality Circle teams from MDL presented their case studies in Chapter Convention on Quality Concepts (CCQC-2022) hosted by M/s Quality Circle Forum of India, Mumbai Chapter from 17 to 18 Sep '22.
• 16 out of 11 QC teams won Gold (highest) Award and
• 05 QC team won Silver Award.

Awards Won by MDL QC teams at QC Events 22-23.

1. "Best QC – Case Study Award" for the day one Presentation of CCQC-22 won by Rainbow QC Team from Welding Department of Shipbuilding.
2. 1st and 3rd Prizes in "Slogan" Competition are also won MDL Personnel in CCQC-22.
3. "Best of Best QC Award" – [Oral Presentation

+ Case Study] for the day one Presentation of CCQC-22 won by Shramik QC Team from Fitting and Machinery Shop of Shipbuilding.

4. 11 QC teams from MDL participated in National Convention on Quality Concepts (NCQC –

2022) Aurangabad held at 27 to 30 Dec-2022. 08 out of 11 QC teams won PAR Excellence Award and 03 QC teams won Excellent Award.

5. 02 Quality Circle Teams from MDL participated in International Convention on Quality Control Circles (ICQCC – 2022) Jakarta, Indonesia held in Nov 2022. Both MDL QC Teams won Gold Award.

Benchmarking

MDL has a long Legacy of producing more than 800 ships of various types. Over the year Quality Inspection Procedure has evolved to suit the latest construction methodology for Ships and Submarine.

MDL has three tier Quality Management System, which comprises self-Inspection by Production Quality Team constituted from the best qualified executives/ operatives/ staff followed by inspection by QA department and finally by the Customer rep. (WOT/THIRD PARTY) which leaves no scope for any error right from the raw material stage to post completion of final product. The non-conformity management with three level monitoring and advising does not allow any anomaly to remain un- attended/un-resolved.

Other Achievements/Facts:

1. Coordination for PDM/PLM:

Quality Management and product Lifecycle Management (PLM) are both proven disciplines that help companies improve Quality and Product Profitability. All activities for P17A, specially Inspection process, (except those whose design module upload is in progress) are being managed through PLM, which offers potential cost savings and simplicity of a single system. All basic QIP and

one combine project QAP has been converted into PDM/PLM format with their relevant context parameters.

1. Inspection Process Achievement through Yard Practices Documentation and Modification:
1. In accordance with the Integrated Construction methodology, the process of existing QIP for preliminary shaft sighting was modified and implemented in the fourth Frigate.
2. To minimize the repeated type of inspection a mechanism was put in place and to save time, an amendment was done in the compartment dry survey process.
3. A detailed Quality Inspection procedure was prepared for identifying the pitting corrosion areas/eccentricity in shaft of the fourth Destroyer.
4. SQC section upgraded and documented the Inspection process of HVAC balancing, which leads to less rejections and reworks during Harbor acceptance trial (HATS) of ongoing projects.
5. SQC section has also modified and documented the Keel sighting activities for Frigates by considering mean weight of the Keel plates.
2. Integrated Construction & MEGA BLOCKs:

Integrated Constrution (IC) is being implemented on a live project on Project P17A for the first time in the Warship Building history of the Nation. In IC, the pre-outfitted blocks are prepared at multiple geographical locations and thereafter assembled into a Ship of the Yard with a significant benefit of reduced build period. The concept leverages on executing various activities in parallel instead of Sequentially. One of the complex activities like shaft alignment that used to take 6-8 months has been reduced to less than two(2) months.

3. AI Enabled Innovations and AI Def Expo 2022

MDL in partnership with IIT Madras, Chennai(IITM) has designed and developed different ARTIFICIAL INTELEGANCE enabled products, out of which below mentioned two are being used on regular work by SB QA :

2. AI enabled Computerized Radiography.
3. AIenabledAdvancePhaseArray Ultrasonic Testing(APAUT).

These products are being developed for improved quality assurance of weld with less time, less labor consumption and higher efficiency. Both the products are safer than the conventional methods in many ways. With data migration, they will become more smart and AI UT can altogether replace radiography (y-rays).

Artificial Intelligence (AI) enabled weld inspection with computerized radiography has been frequently utilized for all the thickness. The results are visible as it has reduced the cost of film by reusing the imaging plate in place of hundreds of films.

Artificial Intelligence (AI) enabled Robotic Weld Inspection using advanced phased array technique: Once mature, this system will enable us to reduce the use of conventional RT in many folds.

Your company is also exploring the development of innovative AI projects like Artificial Intelligence (AI) enabled Autonomous Underwater Swarm Drones, Artificial Intelligence Based Predictive Maintenance of Ship Equipment and Artificial Intelligence Based Energy Management of Fuel Cell .

AI Def Expo 2022

Hon'ble Raksha Mantri Shri. Rajnath Singh launched 75 Artificial Intelligence products / solutions developed by DPSUs, SERVICES (IA, IN, IAF), DRDO, IDex, SIDM and associated Startups, as part of "AiDEF" event on11th July 2022 at Vigyan Bhavan, New Delhi. This event showcased large number of AI projects

/ solutions that increase the efficiency of complex systems / manufacturing processes of the organizations with AI value addition. MDL presented it's 3 AI products in "AiDEF "expo which was well appreciated by Hon'ble Raksha Mantri during his visit at exhibition.

6. Quality Management System

Your Company is committed to implement Quality Management Systems (QMS) as per ISO 9001:2015 standard. 71 Lead Auditors and 77 Internal Auditors are trained for carrying out the Internal Audits for sustenance of QMS in Shipbuilding Division. As a part of sustaining QMS as per ISO 9001:2015 Standard,

1st Surveillance Audit for Submarine Division as per QMS ISO 9001:2015 was conducted on 26 & 27 Apr 2022 and successfully completed with ‘NIL' Non-conformity reports by M/s IRQS with respect to the scope of "Design, Development, Construction, Refit, Test & Trials of Submarines. Based on audit results, M/s IRQS has recommended the continuation for "Certificate of Approval" of QMS ISO 9001:2015.

7. Information Technology
• Your Company completed the following activities during the year under review:
1. SAP Implementation

Implementation of e-Measurement Book (e-MB): In compliance with Govt. of India guidelines, Online measurement book ‘e-MB' has been developed in existing SAP system in September 2022. This e-MB system will replace the existing system of physical Measurement Book for works undertaken by Technical Service Dept. The features of e-MB system include linking of each MB with service purchase order and its service line item, Automatic preparation of service entry sheet with e-MB submission, online document attachment facility.

2. Latest know how on IT

MDL is in the process of revamping MDL official website with new design, look, user features and product centric approach. The purpose and goal of the revamped website is to provide our Visitors / Clients / Vendors / Employees / other Stakeholders a user friendly platform which will give an insight of MDL and facilitate information about MDL's products and Services. The new website shall be interactive and provides convenient access to information about the company through classification under intuitive tabs such as About Us, Products, Services, Investors, Sustainability, Careers, Procurement and Employee information.

3. MoD guidelines on Safety measures adopted / safety measures followed

MoD guidelines related to Information Security are complied as and when received.

4. Achievements of IT in MDL

MDL is (International Organization for Standardization / International Electro Technical Commission) ISO/IEC 27001:2013 (Information Security Management System) ISMS Certified organization w.e.f November 22, 2022.

Indian Register Quality Systems has certified that the Information Security Management Systems (ISMS) of Mazagon Dock Shipbuilders Limited (MDL) has been assessed and found conforming to the Standard ISO/IEC 27001:2013.ISO 27001 is an international compliance framework set by the International Organization for Standardization (ISO). MDL has implemented an ISMS Information Security Management System and achieved conformity with the requirements for its Data Centre at Mumbai, Near Disaster Recovery (DR) at Mumbai & Far DR at Bangalore under CIT functions. ISO 27001 certification reinforces our commitment to Customers, Partners and Regulators to protect their information in all forms. This achievement demonstrates MDL's commitment to continual improvement, development, and protection of Information Assets/Sensitive Data by implementing appropriate Risk Assessments, Policies & Procedures and Controls.

5. Targets set and achieved for 2022-23
• Managed Print Services (MPS) implemented in MDL in January 2023. Around 250+ secured PIN based printers installed all over the yard. All printers are managed & monitored centrally through print server, hence print from any location within the yard is possible. New features of the printers reduced wastage of papers drastically.
• Network Monitoring System is implemented in November 2022 to reduce breakdown/fault finding of network equipment's.
6. Procurement from MSMEs

Your Company is complying with Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012. Accordingly, out of the total annual procurement,

25 % procurement is to be made from MSE.During the FY 2022-23, your Company has achieved 34.20 % procurement from MSEs.

During the FY 2022-23 your Company had conducted two vendor development programs exclusively for MSes owned by SC/ST and Women entrepreneurs. Your Company had also arranged supplier meeting (Buyer Seller) during the year. To futher enhance the vendor base, your Company had participated in eight online/ offline national level programs conducted by MSME- Development Institute (DI) across India.

7. Marketing initiatives

During the financial Year 2022-23, MDL participated in DEFEXPO 2022 in Gandhinagar and Africa Aerospace and Defence (AAD) in City of Tshwane – South Africa

as an exhibitor for marketing and business promotions. The exhibitions immensely helped in showcasing MDL's capabilities and technical strength in warship building and submarine construction. The exhibitions were successful in projecting the image and capabilities of India in the defence production sector in general and warship/ submarine building capabilities in particular. MDL had obtained various leads for potential future projects. MDL delegation visited 16th International Defence Exhibition 2023 (IDEX) and the 7th edition of Maritime Defence Exhibition 2023 (NAVDEX) held in Abu Dhabi. MDL was also part of Ministry of Defence, Government of India delegation who visited and participated in the seminars held in Tanzania, Malaysia, Australia and Bangladesh organized by High Commission of India. During the seminar MDL interacted with the Armed forces / Navy representatives wherein Indian shipbuilding capacities and capabilities were showcased.

8. Health Safety & Environment Management System

Your company has been conferred with "Certificate of Registration" for its integrated Health, Safety & Environment Management System (HSEMS) in compliance with ISO 14001:2015 and OHSAS 18001:2007

w.e.f. Apr 2019. The Certificate is issued by M/s KBS Certification, a firm accredited by Joint Accreditation System of Australia and New Zealand (JAS-ANZ), a member of the International Accreditation Forum (IAF).

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

The standard OHSAS 18001:2007 was upgraded to ISO 45001:2018 w.e.f. Sept 2021. Accordingly, MDL successfully completed the transition of its HSEMS

system from OHSAS 18001:2007 to ISO 45001:2018 in Sept 2021. The Current HSEMS Certification is valid till July 2025.

1. Human Resource Development

Your company has been putting emphasis on the overall growth & development of Human Resources and is committed to continue its relentless efforts in updating the competencies of its executives through exposure to various Learning & Development programs organized by Institutes of National Importance and through sponsoring function based Seminar

/ Conferences / workshops. Besides, in order to ensure smooth supply of skillsets for Company's requirement and shipbuilding industry, various training programs viz. trainings of Trade Apprentices under the Apprentices Act, 1961, BOAT Apprentices and Marine Engineering students under the aegis of DG, Shipping at the Company's run Apprentice Training School have regularly been organized.

A list of Programmes/Trainings conducted during 2022- 23 is as below:

1. To provide an opportunity to the grass root level employees to place their issues/suggestions directly before the management, an Interactive session of CMD & D(CP&P) along with employees under theme ‘Sanskar Se Samrudhi' has been started since 09 Mar 2023 onwards wherein a total of 782 employees have participated under HR initiative. This Platform has received wide appreciation and is designed to bring a cultural change in the organization.
2. A customised program ‘Ethics for Corporate Governance' for Finance Directors of all DPSUs was conducted on 11 Nov ‘22 through External faculty at MDL.
3. Three programs on Intellectual Property Rights (IPR), MOD, GOI's flagship program were conducted at MDL through External faculty to create an IPR driven Innovation Culture wherein 179 employees were benefited.
4. A Customized Online Training platform (COLT) was developed by BEL for training Executives for IPR. 34 Executives from MDL were trained through this platform.
5. In accordance with CVC guidelines, with a view to develop a highly ethical organisation, Executives were nominated for Exposure Visit at National Dairy Development Board (NDDB), Anand, Gujarat.

The exposure visit was a mix of classroom training with experiential learning by way of village visit.

3 programs have already been conducted and

65 Executives trained. The Executives trained at NDDB, Anand further shared the knowledge via a capsule program with a view to develop the Culture, Ethics & Values for MDL. 12 such programs were conducted and around 1565 employees were trained.

6. Executives who had received ‘Certified Welding Inspector' training from Welding Research Institute (WRI), Trichy during FY 2021-22 further shared their knowledge to around 269 non-Executives during FY 2022-23.
7. A customised certification program on ‘Business Communication Skills' was conducted for a batch of 23 Executives through Engineering Staff College of India.
8. Four programs were conducted on ‘Retirement Planning' for the retiring employees. These programs were comprehensive programs encompassing 4 aspects of ‘Diet Management', ‘Wealth Management', ‘Mind Management' & ‘Wellness'.
9. To hone the technical skills, Executives were nominated for various training programs like Fundamentals of Coating and Lining for Paint Officers, Industry 4.0, ‘Material Management, Technology & Advances in Heat Treatment', Procurement through GeM Portal, Non-Destructive Testing in Level-II & III, Vibration Analysis etc.
10. A customised training program on ‘Project Management' was developed and conducted by National Academy of Indian Railways (NAIR) at Vadodara for 30 MDL Executives.
11. Executives were nominated outside MDL for various programs conducted by Department of Public Enterprises (DPE). Topics include ‘Project Planning & Monitoring', ‘Outsourcing & Contract Management', ‘Strategic Marketing Management', ‘Industrial Artificial Intelligence in Industry 4.0', ‘Leadership Development', ‘Building Competencies for Personal Excellence', ‘Risk Management', ‘Decision Making with Data Analytics', ‘Corporate Branding in Digital Era', ‘Ethics in Governance & Preventive Vigilance', ‘Supply Chain Management', ‘Capital Market Reforms, Registration, e-invoicing, returns, TDS & GST', etc.
12. Five programs on ‘Wealth Management' were conducted wherein on roll employees were benefited.
13. A Neuro Linguistic Programming (NLP) course was conducted through External faculty for HR Executives, wherein 10 HR Executives were certified as NLP Practitioner.
14. With a view to develop a family feeling amongst the employees and dedication towards work, 2 capsule programs were developed viz ‘Soch Badlo' for Non-Executives and ‘Soch Banao' for Executives. A total of 633 Non-Executives were covered under ‘Soch Badlo' & 577 Executives covered under ‘Soch Banao'.
15. One outbound ‘Team Building' program was conducted for around 45 Senior level Executives at Lonavala. Similarly, 10 Outbound ‘Team Building' programs were conducted for Non-Executives at RCF, Thal, Alibag wherein around 249 Non- Executives were covered under the said program.
16. Information Security is a highly sensitive issue in current times and being a Defence PSU, further adds on to the vulnerability of the information. To sensitise the employees on the importance of Information Security, 10 programs were conducted in-house, benefiting around 684 employees.
17. Cyber Security, which is of utmost importance in today's digital world needs to be addressed with high sensitivity. Around 12 programs were conducted on ‘Cyber Security' benefiting 620 employees.
18. A capsule program developed comprising ‘Health', ‘Safety' & ‘Fire Fighting' was developed and conducted in-house. 30 programs have been conducted on the said topic and around 700 Employees were trained.
19. Two days capsule program on ‘Preventive Vigilance' was developed in line with CVC guidelines and 2 programs were conducted, benefiting around 85 employees.
20. A customised program ‘Life Vision Architect' was developed for MDL employees with a view to develop the employees internally & externally and develop dedication towards work. The program was conducted at Jeevanvidya foundation, Karjat; 10 programs were conducted and 993 employees were benefited.
21. With a view to develop a pool of training faculty in- house, employees were nominated to ‘Management of Training for Training Managers' was conducted at Shimla, wherein 16 employees were trained.
1. Executives were nominated for External training programs for development of their Technical, Managerial and Behavioural Skills such as ‘National Cost Convention' through ICAI, ‘Legal Aspects of Contract Management' through ASCI, ‘Higher Command Course' through Army War College, ‘Enhancing Assertiveness & Positive Attitude & Disciplinary Rules, Procedure and Vigilance Proceedings in the Organization' through DPC, ‘Emotional Intelligence-The Language of Leadership in a new hybrid world through IPE', ‘How to be an Effective Vigilance Officer' through Sterling Institute of Corporate Conference and Events, ‘International Maritime Law' through International Business Conference, ‘Innovation of Decoding of Human Resources' through Indian Society for Training and Development, ‘Leadership Excellence for Atma Nirbhar Bharat' through Indian Institute of Public Administration, ‘Materials, Engineering, Technology and Advances in Heat Treatment' through ASM International, ‘Strategy for Exports and Export Management & Executives Development Program for Defence Industries' through National Academy of Defence Production, ‘ESG (Energy, Social & Governance) for Industry Transformation' through National Productivity Council (NPC), ‘Administrative Effectiveness, Focus: Human Resource Management', ‘Administrative Effectiveness, Focus Preventive Vigilance, E-Procurement & RTI', ‘Developing Managerial Leadership Skill & E-Procurement & Tendering; GFR' through National Productivity Council, ‘Interactive Workshop on Preparation of Financial Statements as per best Financial Reporting Practices' through Standing Conference of Public Enterprises, ‘Procurement by CPSEs from MSEs and through GeM' through Indian Institute of Materials Management, ‘Workshop on RTI' through Standing Conference of Public Enterprises, ‘Emotional Intelligence for Vigilance Officers' through Sterling Institute of Corporate Conference and Events, ‘Workshop on Power Quality' through Centre for Indian Industry, ‘Transformational Leadership' through Manushou Uthan.
2. One Executive was nominated for ‘Technical Management Course' at INS Mandovi.
3. Special emphasis is laid in MDL to develop the skills of women employees at MDL. In order to ensure safety and dignity of women employees, MDL had conducted two sensitization programs on ‘Prevention of Sexual Harassment of Women at Workplace' (POSH). A total of 97 Employees had participated in the said program. 30th Regional Meet of Forum of Women in Public Sector (WIPS) was

conducted at Goa wherein 12 Women employees had been participated and in National Meet of Forum of women in Public Sector (WIPS) was conducted at Kolkata wherein 13 women employees participated. Training on ‘Women Empowerment' was conducted wherein 130 women employees participated. On the occasion of Women's Day, MDL organized Self Defence program for women Executives wherein 25 women Executives benefited. Apart from that, participation of lady employees is ensured in all the above mentioned programs.

4. An application ‘e-library' was developed on MDL Intranet Portal for knowledge sharing, where all employees can contribute with e-books/ journals/ magazines to be read by all other employees.
5. Various Institutes like Ordnance Factory, ISRO, RCF, ITI and other Educational Institutes visited MDL as part of Industry Institute Interface leading to interaction between MDL and Corporates/ Colleges.
6. MDC had conducted training for Board Level Executives on ‘Strategic Conclave' on 28-29 Jan 2023 wherein 06 Board Level Executives participated, and Masterclass for Directors was conducted on 11-13 March 2023.
1. National Integration:

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

1. MDL follows all directives of the Government with regard to recruitment of SCs/STs/OBCs/PWDs and Minorities.
2. Observes ‘Quami Ekta Diwas' every year and extends financial assistance. This amount is primarily spent towards those children, who become destitute and orphan in Communal, Caste, Ethnic or Terrorist violence for Care, giving Education and Training for their effective rehabilitation.
3. Consistent efforts in bringing the backward and downtrodden of the society in the mainstream through various CSR initiatives in the field of Health, Sanitation, Skill Development, Rural Development, Education and Rehabilitation etc.
4. Women Empowerment through various measures such as Learning and Development initiatives, Committee on WIPS and through Internal Complaint Committee (ICC) for redress of complaints of Sexual Harassment.
2. New initiative by HR- SBC during FY 2022-23
1. Your company assists employees in registering for pension under EPS-95 scheme. MDL has taken significant step in providing PPOs to retiring employees on the day of their retirement under the scheme PRAYAAS implemented by EPFO. Help desk has been set up under the concept of "Pension Mitra" to assist employees for exercising option for higher pension under the Para 11 (3) and Para 11

(4) of Employees Pension Scheme, 1995 in terms of direction given by Hon'ble Supreme Court vide Order dated 04th November 2022 and subsequent guidelines issued by EPFO in this regard.

2. All Non-Executives (retired before 2006, retired between 2006-2016 and retired after 2017) are extended similar coverage for medical expenses.
3. Earlier Health Insurance Policies for providing medical expenses coverage to retired employees is replaced by Self-Funded Scheme which is managed by MDL with assistance from Health Benefit Service Provider.
1. Welfare Activities

Your Company values its human resources highly. To keep their morale high, apart from statutory welfare measures, your company extends several other welfare activities.

1. Life Insurance Coverage:

Your Company has arranged various Group Savings Linked Insurance Schemes, which provide financial assistance in case of untimely death (accidental/ illness) of an employee while on duty. Besides, Group Personal Accident Insurance Scheme has also been in place, which provides 24 hours' coverage for compensation in the event of an accident of an employee resulting in death or permanent / partial disability.

2. Medical Scheme:

All the serving employees, including their dependent family members, are covered under the Medical scheme. Hospitalization claims of around H 45.78 Crore were disbursed towards treatment of the employees and their dependent family members during the FY 2022-23.

3. Other Welfare Activities:

Your Company also provides number of welfare measures viz., Onsite Dispensary and Occupational Health Centre, Hospitalization, Wellness Centre,

Onsite Gym & Club, Uniform, Monsoon Gears, Subsidized Canteen Facility, Scholarship to Unemployed Wards of Employees etc.

1. Superannuation Benefits to Ex-employees
1. Post-Retirement Medical Scheme (PRMS):

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

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

2. Executive's Superannuation (Pension) Scheme

Defined Contributory Superannuation (Pension) Scheme is in operation for Executives which is in line with the Department of Public Enterprise's Pay Revision Guidelines, operated through NPS, New Pension Scheme. MDL contributes 7% of Basic pay and DA to the Superannuation Pension Fund whereas minimum 3% contribution is made by the employees which is credited to National Pension Scheme.

3. Non-Executive's Superannuation (Pension) Scheme

Defined Contributory Superannuation (Pension) Scheme for Non-Executives is also operational in MDL similar to Pension Scheme for executives. The pension scheme is operated through NPS, New Pension Scheme. MDL contributes 5% of Basic pay and DA to the Superannuation Pension Fund whereas minimum 3% contribution is made by the employees which is credited to National Pension Scheme.

1. Manpower and Reservation of Posts for SCs/STs:
1. The Company has been following Presidential Directives of the Government with regard to reservation of posts for SCs/STs in recruitments.
2. Total manpower strength as on 31 Mar 2023 is at 5914 (including functional directors) out of which the number of persons on temporary rolls was 2926 of the total strength, 96 are Ex-servicemen, 825 are of Schedule Caste and 487 are of Scheduled Tribes. The percentage of Scheduled Caste and Scheduled Tribes in respect of Employees stood at 13.95% and 8.24% respectively.
3. Number of persons on temporary rolls as on 31 Mar 2023 is 2926 out of which 388 belong to Scheduled Caste and 272 belong to the Scheduled Tribes category.
4. Details of the statement showing position regarding representation of Schedule Castes and Schedule Tribes in various categories of post on 01 Jan 2022 and 01 Jan 2023 is annexed at Appendix ‘A'
2. Employment of Women:

As per the recommendation No.51, Para (ii)(a) of the National Commission for Women (NCW) in its Annual Report for the year 1995-96, the employment position of Women as on 31 Mar 2023 is given below as directed by the Ministry of Defence, vide their letter Nos. 39(6)/99/D(B&C), dated 27 Aug 1999.

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

1. Executives

Sr. no.	Grade	No. of Employees	Women	Percentage
1	E0	2	1	50.0
2	E1	8	2	25.0
3	E2	55	7	12.7
4	E3	180	18	10.0
5	E4	321	17	5.3
6	E5	201	7	3.5
7	E6	107	8	7.5
8	E7	43	7	16.3
9	E8	15		0
10	E9	4		0
11	CVO	1		0
12	Functional Directors	4		0
	Total	941	67.0	7.12

1. 111Non-Executives (Operatives)

Sr. no	Grade	No. of Employees	Women	Percentage
5	WG-05	2387	57	2.39
6	WG-06	655	14	2.14
7	WG-07	788	19	2.41
8	WG-08	74	0	0
9	WG-09	92	0	0
10	WG-10	36	0	0
11	WG-3A	2	0	0
12	WG-4A	91	0	0
	Total	4598	90	1.96

2. Non-Executives (Staff)

Sr no.	Grade	No. of Employees	Women	Percentage
1	SI-02	2	0	0
2	SI-03	1	0	0
3	SI-05	237	41	17.30
4	SI-06	16	0	0
5	SI-07	51	10	19.61
6	SI-08	7	1	14
7	SI-09	25	2	8.00
8	SI-10	24	4	16.67
9	SI-4A	11	0	0.0
	Total	374	58	15.5

3.6. Persons with Disabilities (PWD) As On 31 Mar 2023:

The total number of physically challenged employees as on 31 Mar 2023 was 111 and its percentage to total employees works out to 1.88%.

Sr no.	Group	HI	LD	VI	TOTAL
1	GROUP-A	7	13	8	28
2	GROUP-B	0	0	0	0
3	GROUP-C	9	69	5	83
	Total	16	82	13	111

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

7. Industrial Relations

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

The Meetings with the Unions on Bargaining Council are held on regular basis and issues of mutual concerns like safety precautions, issues relating to Covid19 pandemic, Recruitment of Fixed Term employees etc. are settled

through bilateral negotiation process and Industrial Relations & Labour situation at MDL, Mumbai, in general, is normal and peaceful.

8. Reservation of Posts

Your company has been observing all the Government directives and instructions issued from time to time on reservation of posts for SCs / STs / OBCs. All the rosters of SC / ST / OBC / PWD are maintained, which is inspected by the respective Liaison Officer from time to time and perused by the SC/ST Unions also. Detailed statistics regarding the total number of employees, number of women employees, recruitment made during the calendar year 2022 and the representation of SCs

/ STs / Ex-servicemen as on 01 Jan 2022 are given at Appendices A, B & C to this Report.

9. Grievance Redressal Committees for SCs/STs:

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

10. Report on Sexual Harassment under the Act.

Following enactment of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redress) Act, 2013, an Internal Complaint Committee (ICC) has been in place to deal with and redress complaints on sexual harassment. 01 (One) complaints were received during the fiscal year out of which 01 was disposed-off.

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1. Awards and Recognitions:

S. No	Awarding Authority	Awards For
1	Convention on Quality Concepts	16 Quality Circle teams from MDL presented their case studies in Chapter Convention on Quality Concepts (CCQC-2022) hosted by M/s Quality Circle Forum of India, Mumbai Chapter from 17 to 18 Sep 2022. 11 out of 16 QC teams won Gold (highest) Award and 05 QC team won Silver Award.
2	International Convention on Quality Control Circles (ICQCC – 2022) Jakarta, Indonesia	02 Quality Circle Teams from MDL participated in International Convention on Quality Control Circles (ICQCC – 2022) Jakarta, Indonesia held in Nov 2022. Both MDL QC Teams won Gold Award
3	National Convention on Quality Concepts (NCQC – 2022)	11 QC teams from MDL participated in National Convention on Quality Concepts (NCQC – 2022) Aurangabad held at 27 to 30 Dec-2022. 08 out of 11 QC teams won PAR Excellence Award and 03 QC teams won Excellent Award.
4	MDL's in-house magazine "Jaltarang"	MDL's in-house magazine "Jaltarang" was selected as the best magazine by Ashirwad Rajbhasha Sansthan and on 20 September 2022 was awarded first prize by Honorable Governor Shri Bhagat Singh Koshyari at Raj Bhavan.

1. Official Language Implementation

Your Company has been adhering to the directives issued by the Govt. of India from time to time for extensive use of Hindi for official purposes. MDL's efforts towards progressive use of Official Language are detailed below:

1. Hindi Diwas was celebrated in MDL on 14 September 2022 and Hindi Pakhwada was celebrated from 19 September 2022 to 29 September 2022 in which Hindi typing, Quiz, dictation, Translation, Hindi essay, Story-telling, Poetry-reading and Singing competitions were organized. Separate competitions are organized in MDL for Hindi speaking and non- Hindi speaking employees and officers. The program of singing competition started with the lighting of the lamp by the CMD.
2. Under the Hindi Teaching Scheme, in the year 2022, in January-May and July-November session, a total of 17 officers/employees passed the Parangat examination.
3. MDL's in-house magazine "Jaltarang" was selected as the best magazine by Ashirwad Rajbhasha Sansthan and on 20 September 2022 was awarded first prize by Honorable Governor Shri Bhagat Singh Koshyari at Raj Bhavan.
4. Official language magazine "Jaltarang" published by MDL was awarded first prize on 25 July, 2022 by Mumbai TOLIC (Town Official Language Implementation Committee).
5. Information related to implementation of Hindi was given through Hindi workshop by Hindi officers for the newly selected officers in MDL.
6. 06 digital boards has been installed for displaying of "Aaj ka Shabd" and "Aaj ka Vichar" at major places of the company
7. Officers and employees were given an incentive award of H 5,000/- for maximum Hindi typing.
8. Officer has been designated as Hindi Coordinator in each department of MDL for better implementation of Hindi.
9. Hindi Diwas and Akhil Bharatiya Rajbhasha Sammelan was organized in Surat on 14-15 September, 2022 where 02 officers/employees participated in the Official Language Conference.
1. Vigilance Activities

Vigilance is an integral Managerial function. Vigilance department takes appropriate action to carry out preventive, participative and punitive vigilance in

Mazagon Dock Shipbuilders Limited (MDL). It promotes transparency, integrity, fairness, accountability in various activities including all commercial procurement functions, recruitment, outsourcing activities etc. Vigilance department suggests Systemic Improvements based on the investigation of the complaints/ spot checks/ CTE type examination and also ensures that integrity is maintained in all functions of the organization.

Activities carried out by Vigilance Department during the period from 01 April 2022 to 31 March 2023 are as follows.

1. CTE Type Examination:

As a part of Preventive Vigilance, CTE type intensive examination of Procurements/ Service Contracts/ Consultancy Contracts/ Subcontracts/ Outsourcing orders are taken to verify compliance to prescribed procedures and statutory norms/ regulations. Five (05) such CTE type examinations were carried out by Vigilance department and Systemic Improvements were suggested.

2. Complaints:

Vigilance department received 47 complaints. Investigation of 11 complaints were pending from 2021-22. Out of these cumulative 58 nos., investigation has been completed for 51 complaints and the remaining 07 complaints are under investigation at various stages as on 31 March 2023.

3. Spot check/ Surprise Checks:

Surprise/Spot checks of various functions of the organization are also being conducted by Vigilance department. 13 nos. surprise/spot checks have been conducted and suggestions/corrective measures were recommended for Systemic Improvements.

4. Scrutiny of Audit Reports & CAG Reports:

40 nos. of Audit Reports (CAG-01 no. & Internal Audit Reports -39 nos.) were scrutinized.

5. Disciplinary Proceedings:

The pending Disciplinary proceedings against delinquent executives are being closely monitored by Vigilance Department. As on 31 March 2023, 02 Major Disciplinary Proceeding are in process. Penal action is recommended against 03 employees and administrative actions such as recordable warning, advisory, counseling etc. were recommended against

10 employees. Administrative actions were taken against 13 employees.

6. Vigilance Clearances:

Timely vigilance clearances were issued for personnel/ officials proceeding on foreign tours

and official duty abroad, compulsory retirement (FR 56J), separation (resignation/ retirement), DPC (Promotion), Board Level PESB Recruitment and attending interview/ forwarding application.

7. Scrutiny of Annual Property Returns (APRs) of executives:

82 APRs of MDL Executives were scrutinized by Vigilance department manually. From the year 2022 onwards, online submission of APRs has been implemented. Exception report to enable faster scrutiny is under development.

8. Preventive Vigilance:

Sixteen (16) Systemic Improvements in the areas of procurement, project execution and other organizational functions like HR, Medical, Administration etc. were suggested to management as an initiative for Preventive Vigilance and the same were accepted by the management and promulgated through Circulars by Directors concerned.

9. Vigilance Awareness Week Activities:
1. Observance of VAW – 2022 on the theme "Corruption free India for a developed Nation" as per CVC guidelines, was commenced with the Integrity Pledge on 31 October.2022 (Monday) at 10:00 a.m. during the Inaugural function which was led by CMD, MDL and attended by all Functional Directors, CVO, EDs and GMs/HODs. The digital version of MDL's In-house Vigilance Journal "Sucharita (Vol. XXV)" was released during the Inaugural function of VAW-2022.
2. In house activities like Essay, Slogan and Poster competitions were organized. An online quiz competition for all MDL employees and an online vendors meet were also organized to create awareness about Vigilance. A Street Play based on the theme of VAW 2022 was performed by students of Apprentice Training School of MDL at prominent places within MDL. Awareness on PIDPI was promoted by sending bulk SMS to stakeholders. A session on Preventive Vigilance and Case Studies was taken by CVO for executives of the Company.
3. Outreach activities like Mini Marathon, Drawing, Essay, Slogan and Rangoli Competition were also organized at Zilla Parishad School, Shahapur and D B Mohane Ashram Shala, Shahapur, Maharashtra for creating awareness about Corruption among school children and citizens.
4. Similarly, Essay competition in NSTI(General), Mumbai and Drawing competition in NSTI(Women), Mumbai were also conducted on the theme of VAW 2022. Total 328 students of these institutes participated in the said competitions.
5. Certificates/Prize awardswere given away to the winners of various competitions organized.
10. During observance of VAW-2022, Sensitization programs on Vigilance Awareness and Preventive Vigilance were organised using in-house as well as external resources for MDL employees covering 336 executives and 243 non-executives at MDL so as to create awareness for eradicating corruption. Two-Days Training module on Preventive Vigilance as part of Induction/ Mid-Career Training:

As per CVC guidelines to all CPSEs, 2-Days training module has been effectively implemented for MDL Executives at the Induction/Mid-Career level. Training has been imparted by MDL Vigilance Team to a total of 85 executives in 2 such batches during the year, in co-ordination with MDC.

11. Exposure visit of executives at NDDB Anand:

In terms of the CVC Letter No. 015/MXC/017 (Pt 16) dated 08 Jan' 21, MDL in coordination with NDDB, Anand organized Exposure Visit for executives at induction and mid-career level. This training at NDDB was attended by 100 executives of MDL, in 03 batches for induction level and 02 batches for mid-carrier level executives.

12. Capacity Building Initiative:

Vigilance executives are trained on various vigilance related aspects through internal & external resources; in turn these executives impart training to MDL Executives & Non-Executives.

1. Governance & Sustainability
1. Corporate Governance

In terms of Regulation 34 read with Schedule V of SEBI (LODR) Regulations and the DPE Guidelines, a report on Corporate Governance for the year ended 31 March, 2023 has been prepared and annexed to this Report. The Company's Secretarial Auditor has issued a certificate on Corporate Governance and is appended to the Corporate Governance Report at Appendix ‘D'.

2. Implementation of RTI Act, 2005

Under the Right to Information (RTI) Act, 2005, to facilitate provision of information to the citizens requesting for the same, your Company has evolved necessary structure by designating officers as Assistant Public Information Officer, Public Information Officer and Appellate Authority for the purpose of implementation of the Right to Information Act in the Company. During the year, the Company received

145 applications and 09 First appeals through online/ offline mode. The information/ replies sought for were duly furnished. The Quarterly Returns are being uploaded on the Central Information Commission's (CIC) website. Proactive disclosures of information were updated on the website of MDL under RTI Link as directed by CIC

3. Meetings of the Board

Against the Statutory requirement of minimum 4 meetings of the Board in a financial year, Ten meetings of the Board of Directors of the Company were held. These were on 30 May 2022, 30 July 2022, 10 Aug 2022, 27 Sep 2022, 10 Nov

2022, 06 Jan 2023, 21 Jan 2023, 30 Jan 2023, 28 Feb 2023

and 28 March 2023 were held during FY 2022-23.

4. Company'sPolicyonDirectorsAppointment and Remuneration

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

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

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

According, to the Ministry of Corporate Affairs, Government of India's Gazette Notification No GSR 463 (E ) dated 5 June 2015, your Company, a Government Company, is not required to frame a Policy on Directors' appointment and remuneration including criteria for determining qualifications, evaluation etc., under section 134(3)( e ) of the Companies Act.

5. Board Evaluation

Pursuant, to the Ministry of Corporate Affairs, Government of India's Gazette Notification No GSR 463 (E ) dated 5 June 2015, the statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors is not required for your Company, as the performance of directors is evaluated by the Administrative Ministry.

6. Changes in the Board

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

VAdm. Narayan Prasad, IN(Retd) (DIN 08644492) was appointed as the Chairman & Managing Director w.e.f.

30 December 2019 pursuant to appointment letter from Department of Defence Production, Ministry of Defence dated 29 November 2019. He superannuated on 31 Januaray 2023, the Board placed on record its appreciation for the valuable support, contribution and guidance provided by VAdm Narayan Prasad, IN (Retd) during his tenure.

Shri. Sanjeev Singhal, (DIN 07642358) Director(Finance) has been entrusted with additional charge of CMD of the Company w.e.f. 01 February 2023 as per the directions of Department of Defence Production, Ministry of Defence.

Shri. Anurag Bajpai,JS(DIP/P&C) (DIN 08948155) was appointed as the Government Nominee Director ( Part Time Official Director) on the Board of the Company

w.e.f 10 November 2022 in place of Shri Sanjay Jaju, ex- Additional Secretary (DP) (DIN 01671018) pursuant to orders conveyed by the Ministry of Defence vide their letter dated 10 November, 2022. The Board placed on record it's appreciation for the support and contribution provided by Shri Sanjay Jaju during his tenure.

Cdr. Vasudev Puranik, IN (Retd) (DIN 09623387) was appointed as the Director (Corporate Planning & Personel) w.e.f. 09 June 2022 pursuant to appointment letter from Department of Defence Production, Ministry of Defence dated 08 June 2022.

Shri. Dattaprasad Kholkar (DIN 10054086) was appointed as Independent Director (Part Time Non- Official) w.e.f. 23 Feb 2023 pursuant to appointment letter from Department of Defence Production, Ministry of Defence dated 13 Feb 2023.

Shri. Shambhuprasad B Tundiya (DIN 03245725) was appointed as Independent Director (Part Time Non- Official) w.e.f. 24 Dec 2021 pursuant to appointment letter from Department of Defence Production, Ministry of Defence dated 24 Dec 2021. He resigned on 13 Nov 2022 due to pre-ocupations, the Board placed on record its appreciation for the support and contribution provided by Shri. Shambhuprasad B Tundiya during his tenure.

7. Constitution of Audit Committee

Audit Committee pursuant to the provisions of Section 177 of the Companies Act, 2013 and the Rules made thereunder has been constituted by the Board. The Committee acts in accordance with the terms of reference as approved by the Board. The composition and other details are disclosed in the Corporate Governance Report. All recommendations made by the Audit Committee were accepted by the Board.

8. Declaration and Meeting of Independent Directors

All Independent Directors of your Company have confirmed that they meet the criteria of Independence as prescribed under both the Companies Act, 2013 and the SEBI Listing Regulations.

A Separate Meeting of Independent Directors in accordance with the provisions of the Companies Act, 2013 was held on 28 March 2023 and all the Independent Directors were present.

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

9. Corporate Social Responsibility

The Company is committed to all its stakeholders to conduct business in an economically, socially and environmentally sustainable manner as part of its CSR & Sustainability policy.

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

The CSR Budget of your company for the FY 2022-23 was H13.92 crore (2% of average profit of the previous three financial years as per section 198 of Companies Act 2013). In addition to above, a sum of H4.56 crore were carried forward from the previous financial year (2021-22). Out of total amount of H18.48 crore, your company spent H12.61 crore towards CSR activities during FY 2022-23 (current FY). Balance sum of H5.87 crore remains unspent

as several projects/programs could not be accomplished/ completed due to delay in the submission of required documents and/or delay in execution of some projects by the implementing agencies. The same was transferred to the Unspent CSR expenses on 26 April 2023.

Your Company has executed 27 projects as part of its CSR initiatives mainly in sectors of Education, Health & Sanitation, Skill Development and Village Development. The executed projects are in line with schedule VII of the Companies Act. The details of the major projects executed in FY 2022-23 are as under: -

1. COVID Management: Keeping MDL's commitment to support the nation's fight against the Covid-19 pandemic, your Company has supported Cama & Albless Hospital, Mumbai towards supply of oxygen from Oxygen Tank to the hospital wards.
2. Aspirational Districts: In line with Pradhan Mantri TB Mukt Bharat Abhiyaan, your Company has supported District Administration in eradication of TB in Nandurbar district (one of the Aspirational Districts in Maharashtra). Under this project, MDL has supported District Administration – Nandurbar in setting up of a mobile diagnostic facility and also provided nutrition support to 400 TB patients.

MDL has continued its support for Gift Milk project in Gadchiroli district (another Aspirational district of Maharashtra) under which fortified milk was supplied to about 4400 students of 40 Govt. Schools in the district.

3. Healthcare & Sanitation: Your Company has continued undertaking new initiatives in the Healthcare sector in the FY 2022-23. MDL has supported a Charitable Hospital in Kota district (Rajasthan) by providing medical equipment. MDL has also supported construction of health & nutritional facility in Rajkot district (Gujarat). Your company has also commenced Anemia Mukt Bharat project which will benefit 10000 patients.

MDL continued its project in supporting and counseling more than 93,000 cancer patients at nine Regional Cancer Centres in 5 different States/ UTs of India. Further, MDL provided much needed support for intellectually deficient children and adults at Children's Home in Mankhurd for the benefit of 265 children who are victims of natural calamity, social apathy and loss of parents. MDL has also made contribution to PMCARES fund.

In line with the Swachh Bharat Mission of Govt. of India, your company has continued the clean-ship of areas/ wards in Mazagon, Mumbai. MDL has also made contribution to Swacch Bharat Kosh.

4. Education Sector: Your Company has provided a 45 seater bus to Govt. Sainik School, Tilaiya in Jharkhand by augmenting transport facility for the school students.

MDL has continued its support for "MDL Super 10" project and a total of 25 students from Shahapur area (Thane district) have been provided support to get quality education at Bhonsala Military School, Nagpur.

5. Village Development: Your Company has continued its support for Kharade Gram Panchayat in Shahapur District Thane under Model Village Development project and had taken several new initiatives on school education, drinking water and health sectors benefitting around 9000 persons in 04 Gram Panchayatas. MDL has also provided support for construction of community hall in Yadadri Bhongir district of Telangana.
6. Skill Development: Your company has supported vocational training to 100 youths as Machine Operator in Plastics Processing and Injection Moulding trade in Aurangabad and Chandrapur through Central Institute of Petrochemical Engineering & Technology (CIPET). Besides this, MDL has continued its support for apprenticeship training at Apprenticeship Training School, MDL. Your company has also supported 300 students of Govt. ITI – Chikaldhara in Amravati district through scholarship and exposure visit.
7. Support for War Widows: Your company has supported construction of hostel (4 units of 1BHK) for war widows (Veer Naris) at Mankhurd in Mumbai. MDL has also made contribution to Armed Forces Flag Day Fund.
8. Support to Technological Incubators: MDL has continued its support to Partner Incubators under Innovations for Defence Excellence (iDEX) towards developing innovation ecosystem.

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

1. Environment and Pollution Control:

Your Company has engaged various initiatives towards sustainable development and energy conservation in the year under report. In alignment with the Government of India's policy to increase the quantum of renewable energy and to reduce energy consumption various projects were undertaken by your company as follows:

1. MDL is committed to reduce the consumption of energy generated by fossil fuel and to increase the generation of renewable energy to the maximum possible extent. MDL has already installed 1.85 MWp Roof Top solar power plant.
2. Procurement of 40,000 Nos. 110V LED bulbs.
3. Procurement of 40 Nos. LED flood lights

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

1. Swachh Bharat Initiatives

Your Company, adhering to the Prime Minister's Swachh Baharat Abhiyaan, has been able to make positive impact in creating mass awareness movement in and around MDL and bring about lasting behavior change in the society through participation of employees at all levels as well as the people from the surrounding area.

1. Clean-ship of adjacent areas/Roads of MDL by external agency: MDL has engaged a specific agency for carrying out daily cleaning of roads (approx. 4.5 km) adjacent to MDL.
2. MDL carried out special Swachhta Drive at Sewari Fort.
2. Particulars of Employees and Related Disclosures

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

3. Extract of Annual Return

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

4. Directors' Responsibility Statement

As required under Section 134(3) (c) and 134(5) of the Companies Act, 2013 the Directors' Responsibility Statement is given as under, that:-

1. In the preparation of the Annual Accounts for financial year ended 31 March 2023, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;
2. 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 the Company at the end of the Financial Year i.e. 31 March 2023 and of the Profit and Loss of the Company for the year ending on 31 March 2023;
3. 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, as amended from time to time, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
4. The Directors have prepared the Annual Accounts for the financial year ended on 31 March 2023 on a going concern basis;
5. The Directors have laid down Internal Financial Controls to be followed by the Company and that such Internal Financial Controls are adequate and are operating effectively and
6. The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
1. Statutory Auditors and their Report

The Comptroller and Auditor General of India under Companies Act 2013, appointed M/s. C.R. Sagdeo & Co, Chartered Accountants Mumbai, as the Statutory Auditors of the Company for the financial year 2022-

23 as MDL is a CPSE. The Auditors have certified the Accounts and their Report is placed as a part of Annual Report.

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

2. Comments of the Comptroller & Auditor General of India

The Comments of the Comptroller and Auditor General of India under Section 143 of the Companies Act 2013 are placed as a part of Annual Report.

3. Cost Auditors

M/s. Dhananjay V Joshi & Company, Mumbai, were appointed as Cost Auditors for conducting cost Audit of the Company under section 148 of the Companies Act, 2013 for the year 2022-23 and accordingly such accounts and records are made and maintained.

4. Secretarial Audit

M/sRaginiChokshi&Co.,PracticingCompanySecretaries, Mumbai were appointed to conduct Secretarial Audit of the Company for the financial year 2022-2023 pursuant to provisions of Section 204 of the Companies Act, 2013 and Regulation 24A of the SEBI(LODR) Regulations, 2015. The Report of the Secretarial Audit in Form MR-3 is annexed to the Directors' Report as Appendix 3 and forms part of this report. The Report does not contain Qualification, Reservation or Adverse remark except that the Company did not have sufficient numbers of Independent Directors on the Board of the Company as stipulated under the SEBI (LODR) Regulations, 2015.

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

5. Adequacy of Internal Financial Controls with Reference to The Financial Statements
1. The Company has an Internal Audit Department, which monitors compliances of Company's procedures, and policies with well-defined annual audit program and significant audit observations are reported to the Audit Committee of Board of Directors. The Internal Audit function is headed at the level of Executive Director who is reporting directly to the Chairman & Managing Director.
2. The implementation of SAP/ERP system has helped to strengthen the Internal Control Systems with its in built checks and balances at various level of operations and it has set up disaster recovery site at distant locations.
3. The system of Internal Control comprises well defined organization structures, pre-identified authority level and procedure issued by management covering all vital and important areas of activities which includes Purchase, Stock verification, Inventory Consumption, Fixed Assets, Cash & Bank Management & Treasury, Payroll, HR, Risk Management, Statutory Compliance and all other activities involved in financial statement closing process.
4. Internal audit of specific areas of the Company's operations has been outsourced to Chartered Accountant firm. In addition to outsourced audit activities, other audit activities are carried out by in-house Internal Audit department. Audit reports given by Internal Auditors were reviewed by Audit Committee and necessary directives were issued. The Company had initiated suitable actions on the said directives.
1. Management Discussion &Analysis Report

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

2. Business Risk Management

Pursuant to regulation 21 of the SEBI(LODR), 2015 the Company has constituted a Risk Management Committee and its terms of reference, Risk Management Policy etc. are set out in the Corporate Governance Report.

3. Business Responsibility Sustainability Report (BRSR)

The Listing Regulations mandates the inclusion of the BRSR as part of the Annual Report for the top 1000 listed entities based on Market Capitalization. In compliance with the Listing Regulations, we have integrated BRSR disclosures into our Annual Report.

4. Future Outlook

Your Company has envisaged following measures of future outlook.

i. Infrastructure

Your Company is exploring the possibility for setting up a green field shipyard at its Nhava Yard in a phased manner with short term and long term developments plan. Short term development will enable MDL to facilitate the immediate use of the existing infrastructure for shipbuilding and ship

repair business whereas long term development will facilitate the construction of large size vessels and submarines including major refit and repairs.

To undertake the construction of advanced and next generation vessels, MDL intends to build a New Floating Dry Dock of 12000T capacity.

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

The progress of all the ongoing projects were affected in 2020-21 & 2021-22 on account of the prolonged pandemic situation worldwide. All efforts are being made to complete ongoing projects as per revised time schedules.

2. Submarine Project
1. Project 75 (I):

MDL has been shortlisted as one of the Strategic Partners (SP) for future submarine project P 75(I). RFP from MoD for P75 (I) was issued on 20 July 2021 to shortlisted strategic partners and revised bid submission date is 01 Aug 2023.

2. Additional 03 nos. Scorpene class Submarines:

Preliminary proposal for additional 03 nos. Scorpene class Submarines with higher Indigenization content has been submitted to IHQ/MoD(N) on 10 Oct 2022. MDL comments on IN's SOC were forwarded on 08 Apr 2023. case is currently under deliberation at MOD.

3. Product Life Cycle Support for Conventional Submarines:

Successful completion of construction of two SSK class submarines, Modernization & Refit of four SSK class submarines, present construction of six Scorpene class submarines and Medium Refit cum Life Certification (MRLC) of one SSK class Submarine, INS Shishumar has forged MDL's position as the only Indian Shipyard with capabilities to build & provide Life Cycle Support for conventional submarines.

Medium Refit cum Life Certification (MRLC) of INS Shishumar, SSK class Submarine is currently in advanced stage of refit completion. RFP for second SSK class Submarine has been issued by IN on 28 Apr 2022 and order placement is expected by Jun 2023. MDL is fully poised to render Life Cycle support for Submarines of Indian and Foreign Navies.

4. Parallel lines for Submarine Construction

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

1. Exports:
1. Your Company has a rich legacy of building close to 801 ships since inception, a broad spectrum of exports carried out in the past comprising of more than 250 vessels, the impeccable quality of the products delivered that has been internationally acclaimed are all being leveraged in a concerted manner for exports. MDL's export portfolio covers a wide gamut of products comprising of new builds for civilian and military end-use, repairs of commercial vessels and refits of war vessels. Customized service portfolios wherein MDL can pitch-in as a Know-How Provider for specific needs of developing nations are also in the offer. The last export order was delivered in 2014 and MDL now intends to revamp its presence in the Export market. Highly competitive markets, changing technology, stringent quality criteria, increased expectations of the customer and competitive pricing of the products from North–East Asian countries are some of the challenges that MDL is working upon.
2. Your Company intends to revamp its presence in the export market. MDL has been in dialogue with various Indian Embassies/High Commissions abroad to expand its product outreach to prospective customers. MDL is participating aggressively in the global tenders issued by various countries and is in dialogue with foreign navies to fulfil their requirements. The commercial shipbuilding sector world-wide is passing through a down turn and MDL

is deeply aware of the situation. Nevertheless, the defence needs in the international market continue to rise. MDL has unique strengths and skill sets that have been painstakingly developed in the past eight decades and are adapted in the complex activities of weapon integration sensors for high tech defence platforms. This gives a cutting edge for MDL against their competitors and MDL is all set to cash-in this scenario. MDL has also appointed Management Representatives for canvasing MDL's rich legacy in construction of Naval and Non-Naval vessels and promoting MDL's products in the global market. The Management Representative will also facilitate expansion and growth of MDL business in near future.

3. In addition to constructing vessels, MDL is also ready to provide the services like design of Warships and Commercial Ships, Transfer of Technology and imparting training in construction of large Warships, Auxiliary Boats and Ferries, hand-holding to the Customer's Shipyard for construction and first line repairs of Warships and auxiliary vessels and Training the technical teams from customer's side in the field of Setting to Work of systems and Ship trials. Your company has the capability for Refit, Overhaul and Life extension refits of Ships and Submarines. MDL has provided yard facility to a luxury yatch from Caymans Island and an Ofshore supply vessel from United Arab Emirates. MDL intends to tap the global Ship Repairs market for both Naval and Commercial Ships, and Submarines in future.
4. MDL also has facilities & capacity for fabrication of Pressure hull subsections. Export of Pressure Hull sections to any other country manufacturing

/ procuring Scorpene class Submarines is being explored. Your Company also intends to undertake infrastructure development and become part of global supply chain for products. MDL was awarded an order for supply of various types of valves from M/s. Fortune Engineering & Energy services, Dubai, United Arab Emirates.

5. Your company is exploring the possibility of converting the requirements of government agencies of target countries to projects under LoC. Efforts are on for pursuing exports with various countries following both the G2G route wherein

the GoI have opened Lines of Credit with funding typically extended by EXIM bank as well as the B2B route with sovereign guarantee of the recipient nation.

6. Your Company's strategic positioning on the west coast of the country provides proximity to the main sea routes crisscrossing the Arabian Sea and Indian Ocean with accessibility to Europe and Middle East. Tie-ups with other small shipyards in the country are in place. MDL has aligned itself with the new thrust on Defence exports.
7. Products mentioned under R&D and diversification also have export potential. MDL is in touch with Indian Embassy's and also with authorised agents for export opportunities. MDL is also participating in various National & International level Defence Exhibitions like Defexpo, Aero India etc. to explore export opportunities.

Acknowledgements

Your Directors wish to place on record their gratitude and sincere appreciation for the assistance, co-operation and guidance received by the Company from various Ministries of the Government of India especially the Ministry of Defence, Department of Defence Production, the Indian Navy, Greater Mumbai Municipal Corporation,

Mumbai Port Trust, Principal Controller of Defence Accounts (Navy), the Departments of Customs, Income Tax and GST.

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

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

For and on behalf of the Board

Sanjeev Singhal

Chairman & Managing Director

DIN: 07642358

Place: Mumbai Date: 10 Aug, 2023