Hariyana Ship Breakers Ltd has fulfilled its quarterly regulatory compliance requirements by submitting the mandatory certificate to BSE for the quarter ended March 31, 2026. The submission, made on April 8, 2026, demonstrates the company's adherence to SEBI depositories regulations.

Regulatory Compliance Certificate Details

The certificate was issued by the company's Registrar and Share Transfer Agent, MUFG Intime India Private Limited (formerly Link Intime India Private Limited), on April 3, 2026. This document confirms compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended March 31, 2026.

Registrar Confirmation

MUFG Intime India Private Limited confirmed that securities received from depository participants for dematerialisation during the quarter ended March 31, 2026, were properly processed and confirmed to the depositories. The registrar verified that:

• Securities received for dematerialisation were confirmed or rejected within prescribed timelines
• Security certificates were mutilated and cancelled after due verification
• Depository names were substituted in the register of members as registered owners
• All securities are listed on stock exchanges where earlier issued securities are listed

Corporate Governance

The submission was signed by Pooja Singh, Company Secretary and Compliance Officer (Membership No. A68696), on behalf of Hariyana Ship Breakers Limited. The certificate from MUFG Intime India was signed by Ashok Shetty, Sr. Vice President-Corporate Registry.

This quarterly compliance filing represents part of the company's ongoing regulatory obligations to maintain transparency and adherence to SEBI guidelines for listed entities.

Hariyana Ship Breakers Ltd has informed stock exchanges about a credit rating downgrade by Acuite Ratings & Research Limited. The rating agency has downgraded the company's long-term bank facilities to 'ACUITE BB' from 'ACUITE BB+' while maintaining its short-term facilities rating, reflecting operational challenges in the ship-breaking industry.

Rating Changes and Facility Details

The rating action affects the company's banking facilities across different tenures and amounts:

The downgrade comes as Acuite Ratings cited the company's significantly subdued operating performance in FY25 and FY26, primarily due to the absence of ships available for dismantling operations.

Operational Performance Impact

The company's core ship-breaking operations have faced severe challenges, resulting in dramatic revenue decline. Key performance indicators show the extent of operational difficulties:

The company reported negligible revenues of Rs 0.22 crore in FY25 compared to Rs 148.63 crore in FY24, representing a decline of over 99%. Despite operational challenges, the company maintained positive profit after tax of Rs 1.60 crore, supported largely by investment income rather than operational contributions.

Financial Risk Profile Assessment

Despite operational setbacks, Haryana Ship Breakers maintains a moderate financial risk profile with several supporting factors:

Strengths:

• Net worth of Rs 146.87 crore as of March 31, 2025
• Low gearing at 0.11 times in FY2025
• Adequate coverage indicators with interest coverage at 2.25 times
• DSCR at 1.88 times in FY2025
• Total Outside Liabilities to Tangible Net Worth ratio at 0.13 times

Key Concerns:

• Significant portion (~94%) of net worth invested in associate/affiliate real estate entities
• Continued operating losses due to ship unavailability
• Susceptibility to volatile steel prices and geopolitical factors affecting vessel inflow

Company Background and Operations

Incorporated in 1981, Haryana Ship Breakers operates in the ship-breaking industry at Alang-Sosiya, Bhavnagar, Gujarat, on a 4,185 sq. m plot leased from Gujarat Maritime Board. The company also engages in trading ferrous and non-ferrous metals, coils, and maintains real estate investments. The promoters bring over three decades of experience in the ship-recycling business, providing established industry relationships and operational familiarity at Alang, a key ship-breaking hub.

Liquidity and Future Outlook

The rating agency assessed the company's liquidity position as adequate, supported by positive cash accruals of Rs 2.72 crore in FY2025 against modest debt obligations of Rs 0.14 crore. Future cash accruals are expected in the range of Rs 5.45-5.80 crore over the medium term. The outlook remains 'Stable' with rating sensitivity dependent on operational revival and ship availability. Management expects improvement in FY2027 as discussions with brokers for vessel purchases continue.

Source: None/Company/INE400G01011/f1fa878e-3ddb-4e80-b63a-257862f252e0.pdf