Garden Reach Shipbuilders & Engineers Limited has released its Annual Secretarial Compliance Report for the financial year ended March 31, 2026. The report details the company’s commitment to regulatory standards, while acknowledging certain non-compliances regarding board composition, committee constitution, and performance evaluation. The company, as a Central Public Sector Enterprise, continues to engage with the government to address these procedural gaps, emphasizing its dependence on government-led appointments for board-level leadership and audit functions.
Report Overview
Garden Reach Shipbuilders & Engineers Limited (GRSE) has made public its secretarial compliance status for the fiscal year 2025-26. The report, prepared by the practicing company secretary, serves as a comprehensive review of the company’s adherence to corporate governance and regulatory requirements during the 12-month period ending March 31, 2026.
Compliance and Challenges
During the review period, the company faced challenges in meeting specific requirements related to board structure and committee constitution. Key deviations highlighted include the absence of the prescribed number of Independent Directors, the lack of a woman independent director, and the resulting inability to fully reconstitute vital board committees such as the Audit Committee, Nomination and Remuneration Committee, and the Stakeholder Relationship Committee during certain parts of the year.
These deviations were primarily due to the timing of appointments, which are managed by the Government of India through the administrative Ministry. The report notes that these matters are outside the direct control of the company.
Government-Led Governance Structure
As a Central Public Sector Enterprise (CPSE), GRSE operates under the administrative control of the Ministry of Defence. Board-level appointments, including the designation of independent directors, are determined through presidential orders. Consequently, the report clarifies that the company maintains its commitment to regulatory compliance and actively pursues the matter with the relevant government authorities to ensure the timely appointment of requisite personnel.
Performance Evaluation and Operational Framework
The company also addressed procedural observations regarding performance evaluations and succession planning. In line with the Ministry of Corporate Affairs (MCA) notification dated July 5, 2017, the company follows an evaluation framework administered by the Department of Public Enterprises for government companies. The management has reaffirmed that its existing internal talent pipeline at the Senior Management level successfully supports the company’s succession planning, even as board-level roles remain subject to government selection mechanisms.
Source: BSE
