Garden Reach: Penalty fallout, but sustainability still key.

Garden Reach Shipbuilders & Engineers Limited (GRSE) announced a monetary penalty of INR 25,87,740 each from NSE and BSE. This was for non-compliance with Regulation 17(1) of SEBI (LODR) Regulations, 2015, regarding its board composition in FY 2024-25. The issue stemmed from the non-appointment of the required number of independent directors, including a woman independent director, by the Government of India. This led to improperly constituted Audit and Nomination and Remuneration Committees. GRSE has appealed for a waiver, noting the appointments are beyond its control.

Despite this compliance challenge, GRSE's Business Responsibility and Sustainability Report (BRSR) for FY 2024-25 highlights various sustainability initiatives. The company reported dedicating 2.34% of its capital expenditure to improving environmental and social impacts, with 74% of procurement value sourced from supply chain partners implementing sustainable practices. Total energy consumption stood at 47,003 GJ, with renewable sources contributing 9,087 GJ, demonstrating efforts in green energy and resource optimization. The company also detailed its waste management practices, emphasizing reduction, recycling, and safe disposal.

GRSE also reported ongoing efforts in human capital development. In FY 2024-25, 38.22% of employees and 24.90% of workers received health and safety training, and 66.43% of employees and 13.63% of workers underwent skill upgradation. Additionally, the company is engaged in several CSR projects aimed at inclusive growth and equitable development, focusing on skill training, health check-ups, and community infrastructure in vulnerable regions.