Cochin Shipyard Limited has executed a Joint Venture Agreement with HBL Engineering Limited to establish Green Maritime Propulsion Private Limited. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI LODR Regulations, marking a strategic move into electric mobility technology and energy storage solutions for the maritime sector.

Joint Venture Structure and Capital Details

The partnership establishes a comprehensive framework for the new venture with specific capital allocation and ownership structure:

Governance and Management Structure

The joint venture will operate under a structured governance model with a five-member Board of Directors. HBL Engineering, holding the majority stake, will nominate three directors including the Managing Director, while Cochin Shipyard will nominate two directors including the Chairman. HBL may also appoint a Chief Executive Officer in lieu of a Managing Director for day-to-day operations.

Strategic Focus Areas

Green Maritime Propulsion Private Limited will concentrate on developing electric mobility technology and energy storage solutions specifically for the maritime sector. The venture aims to cater to both domestic and global markets, aligning with the Government of India's Aatmanirbhar Bharat vision.

Market Opportunities

The collaboration positions both companies to capitalize on the growing adoption of electric and hybrid propulsion systems in the maritime industry. The partnership leverages Cochin Shipyard's established shipbuilding expertise with HBL Engineering's technical capabilities in sustainable maritime technologies.

Regulatory Compliance

The joint venture agreement execution follows proper regulatory protocols, with Cochin Shipyard filing the disclosure under SEBI Master Circular guidelines. The company confirmed that this arrangement does not fall under related party transactions and has been structured at arm's length terms.

Cochin Shipyard Limited has informed stock exchanges about receiving regulatory fines from both BSE and NSE for non-compliance with SEBI LODR Regulations. The company disclosed this information in a regulatory filing dated March 02, 2026, pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Action Details

Both stock exchanges have imposed identical fines on the company for violations during the quarter ended December 31, 2025. The regulatory action encompasses multiple compliance failures related to board composition and committee constitution.

Nature of Violations

The fines stem from multiple regulatory breaches identified during the quarter ended December 31, 2025. The violations encompass critical governance requirements under the SEBI LODR framework.

The specific non-compliances include:

• Regulation 17(1): Composition of Board of Directors – absence of sufficient number of Independent Directors
• Regulation 18: Non-compliance with the constitution of audit committee
• Regulation 19: Non-compliance with the constitution of nomination and remuneration committee

Company's Position and Remedial Measures

Cochin Shipyard Limited has clarified its status as a Central Public Sector Enterprise under the administrative control of the Ministry of Ports, Shipping and Waterways, Government of India. This structure significantly impacts the company's ability to independently address board composition requirements.

The company has outlined its remedial approach:

• Forwarded necessary requests to the Government of India for appointing sufficient number of independent directors
• Making constant efforts to meet compliance requirements
• Planning to constitute audit committee and nomination and remuneration committee once sufficient independent directors are appointed

Financial Impact and Waiver Requests

The company has assessed the financial impact of the regulatory action as minimal, limited to the extent of fines imposed. Cochin Shipyard Limited plans to file appropriate requests for waiver of the imposed fines with both stock exchanges.

The company emphasizes that the non-compliances were neither due to negligence nor default by the company, nor within the control of the management, given the government's authority over director appointments in public sector enterprises.