Annual Secretarial Compliance Report for the financial year ended March 31, 2025
Awaiting price reaction for this filing.
Cochin Shipyard submitted its Annual Secretarial Compliance Report for FY25, flagging multiple SEBI LODR compliance deviations. The main issue is insufficient Independent Directors on the board — none since November 22, 2024 — which in turn led to the Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee, and Risk Management Committee being improperly constituted. Board meetings on February 6 and March 28, 2025 also lacked the required independent director quorum. BSE and NSE levied total fines of about Rs 12.59 lakh (including GST) across five non-compliances. Being a Central Public Sector Enterprise, director appointments rest with the Government of India; Dr. Seema Suri was appointed as an independent director on May 20, 2025, and the remaining five appointments are awaited.
Minor financial impact from penalties but reflects weak governance compliance for over a year, which is a governance red flag for shareholders even though it is driven by delayed government appointments of independent directors. Full compliance is expected once all independent directors are in place.