Garden Reach Shipbuilders & Engineers Limited has appointed Shri Vijay Namdeorao Zade as Part-Time Official Director on its Board, replacing Shri Dinesh Mahur, effective June 5, 2026. The nomination was made by the Ministry of Defence, Government of India, via its letter No. 8(29)/2026-D(Coord/DDP) dated June 5, 2026. Shri Dinesh Mahur has relinquished his position as Part-Time Official Director and Government Nominee Director with effect from the same date.

The company is currently awaiting requisite details, including the Director Identification Number (DIN), from the newly appointed director. These details are necessary to complete the disclosure prescribed under Regulation 30 of the SEBI (LODR) Regulations, 2015. The information will be intimated to the stock exchanges upon receipt.

The appointment follows the standard regulatory process for changes in board composition involving government nominees. The outgoing director, Shri Dinesh Mahur, held the DIN 10862645.

Garden Reach Shipbuilders & Engineers Limited has been fined ₹9,55,800 by BSE Ltd for failing to comply with board composition requirements during the quarter ended 31 Mar 2026. The penalty, inclusive of GST, was levied due to the non-availability of the required Independent Directors, including a Woman Independent Director, and the non-constitution of the Audit Committee and Nomination and Remuneration Committee. The exchange cited violations under Regulation 17(1), 18(1), and 19(1)/19(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Garden Reach Shipbuilders & Engineers Limited submitted a response to BSE on 29 May 2026, explaining that it is a Central Public Sector Enterprise under the administrative control of the Ministry of Defence. The company stated that the President of India, acting through the Ministry of Defence, is the Promoter and that Directors are appointed via Presidential Orders. Consequently, the company argued that the non-compliance arose due to the non-appointment of Independent Directors by the Government of India, a matter beyond its control.

Details of Non-Compliance

The specific lapses identified by the exchange during Q4FY26 included the absence of mandated Independent Directors and the failure to constitute key committees required for corporate governance.

The company has formally requested that the fine be waived, asserting it should not be held liable for the delays in appointments. Garden Reach Shipbuilders & Engineers Limited confirmed it continues to actively pursue the matter with the Government of India through the Ministry of Defence to ensure the timely appointment of the requisite Independent Directors.