DIRECTORS' REPORT

Your Directors present the Sixty-second Annual Report and the Audited Accounts for the year ended 31st March, 2026. 1. FINANCIAL RESULTS

MANAGEMENT DISCUSSION, ANALYSIS / OPERATIONS REPORT AND PERFORMANCE OF THE COMPANY

During the year under review, the Company recorded a profit before finance charges, depreciation, exceptional items and tax is of INR 151.68 lakhs as against INR 281.38 lakhs in the previous financial year. The decrease in profit is primarily on account of a reduction in lease rental income due to a decrease in the leased area along with an increase in administrative expenses.

Additionally, the Company has made a provision for tax amounting to INR 106.38 lakhs during the year under review, as compared to INR 72.68 lakhs in the previous year.

The Company has huge experience of operating ships on international cross trade as well as on Indian coast and therefore looking for appropriate opportunities in such trade. The Company is exploring possibility of acquiring vessels / tugboats at appropriate time.

INTERNAL FINANCIAL CONTROL SYSTEM

The company maintains effective internal control systems, which are regularly reviewed by the Audit Committee of the Board of Directors. Based on the evaluation criteria defined in Section 177 of the Companies Act 2013 and Clause 18 of the SEBI (LODR) Regulations 2015, the Audit Committee has concluded that as of March 31, 2026, our internal financial controls were adequate and functioning effectively.

GOVERNMENT POLICIES

The Indian economy, alongside many developed nations, continues to strive for a rapid economic growth. As part of their comprehensive strategies, governments worldwide are prioritizing infrastructure development, which augurs well for global trade dynamics.

INDUSTRIAL RELATIONS

Throughout the year, industrial relations remained exceptionally harmonious with no reported disputes or conflicts.

THREATS, RISKS & CONCERNS

Freight Risks: The charter income is subject to freight rate risks and therefore the Company, at group level, follows the policy of mixture of short period and long period time charter contracts with first class charters to mitigate volatility in freight rates.

Interest Rate Risk: With a view to avoid uncertainty in the interest rate, the necessary forward cover is taken at regular intervals wherever necessary.

Forex Risk: As major portion of the Group's revenues is generated from international business in the US Dollar terms, the same creates a natural hedge against foreign exchange exposures. The Company reviews Rupee - US Dollar parity on regular basis to protect itself from currency fluctuation risks. At the Company standalone level, there is very limited forex risk for the Company.

Counter Party Risks: The Company engages into charter contracts with the reputed charters to avoid the risks to the freight earnings. Government Policies: The Company regularly reviews the changes in the applicable government policies affecting operations of the Company.

Human Resources: There is a scarcity of floating staff. In view of outsourcing of crew management, the Company gets the benefit of having efficient and cost effective floating staff from the Ship Manager's pool.

Ratios:

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof, including:

(i) Debtors Turnover :41.93:1 The change in debtors turnover is due to highly effective credit and collection process

(ii) Inventory Turnover : Not Applicable

(iii) Interest Coverage Ratio : Not Applicable

(iv) Current Ratio : 4.08:1

(v) Debt Equity Ratio : Not Applicable

(vi) Operating Profit Margin (%): Not Applicable

(vii) Net Profit Margin (%) or sector-specific equivalent ratios, as applicable: 0.28:1 The net profit margin has reduced due to a decline in an Income caused by vacancy of the leased property

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.

The Return on Net-worth for the year is "NIL" as against the previous year 2.86%.

2. DIVIDEND

The Board of Directors did not recommend any dividend for the financial year under review.

3. RESERVES

Throughout the financial year under review, the Company did not need to allocate any funds to reserves.

4. SHARE CAPITAL

The paid-up equity shares capital of the Company as on 31st March, 2026 was INR 36,30,84,250 comprising of 36,308,425 shares of INR 10/- each. During the year under review, there has been no change in the capital structure of the Company.

5. SUBSIDIARIES

Chowgule Steamships Overseas Ltd (CSOL), a wholly owned subsidiary of Chowgule Steamships Limited (CSL) registered in Guernsey, United Kingdom, has entered insolvent liquidation. On March 13, 2024, a resolution passed by CSOL's shareholders initiated the company's winding up and liquidation process. Leonard Curtis and Sophie Smith were appointed as joint liquidators to oversee this process.

As no objections were received the wholly owned subsidiary, CSOL, stood dissolved upon completion of the liquidation process in accordance with the applicable laws on June 16, 2025.

6. INSURANCE

The fleet of the Company has been adequately insured against Marine and War Risks.

7. DIRECTORS AND KEY MANAGERIAL PERSONNNEL

During the financial year under review, there were no changes in the composition of the Board of Directors of the Company. Further, there were no changes in the Key Managerial Personnel of the Company or in the positions held by them during the said period.

The Members of the Company, at the Annual General Meeting held on Friday, August 08, 2025, approved the continuation of the directorship of Prof. (Dr.) Rohini Chowgule (DIN: 00019057) as a Non-Executive, Non-Independent Director, including the continuation of her appointment upon attaining the age of seventy-five (75) years, in accordance with the applicable provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Members also approved the continuation of the directorship of Mr. Ramesh Chowgule (DIN: 0001810) as a Non-Executive, NonIndependent Director, who had already attained the age of seventy-five (75) years, in compliance with the applicable provisions of law.

Further, the Members re-appointed Mr. Amit Khandelwal (DIN: 02479119) as an Independent, Non-Executive Director, not liable to retire by rotation, for his second consecutive term in accordance with the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

On the recommendation of the Nomination and Remuneration Committee, the Board of Directors, at its meeting held on May 26, 2026, considered and approved the continuation of Mr. Vjay Vishwasrao Chowgule (DIN: 00018903) as the Whole-Time Director of the Company, liable to retire by rotation, subject to the approval of the Members at the ensuing Annual General Meeting. Being eligible, he has offered himself for re-appointment.

During the year under review, the non-executive directors of the Company maintained no financial relationships or transactions with the Company, aside from receiving sitting fees and reimbursements for expenses incurred while attending Board or Committee meetings.

8. CORPORATE GOVERNANCE

In terms of the listing agreement with the BSE Ltd., the Corporate Governance Report is annexed hereto and forms a part of this Report.

9. CODE OF CONDUCT

The Board of Directors has laid down a Code of Conduct for all the Board Members and Senior Management of the Company. The said Code has been hosted on the website of the Company. All the Board Members and Senior Management have affirmed compliance to the Code.

10. BOARD EVALUATION

Pursuant to the provisions of the Companies Act, 2013 and the Listing Regulations, the Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration and other Committees.

a) Observations of Board Evaluation carried out for the year - There were no observations in the Board Evaluation carried for the year.

b) Previous year's observations and actions taken - There were no observations of the Board evaluation for the last financial year

c) Proposed actions based on current year observations - Not applicable

11. REMUNERATION POLICY

The Board has, on recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration. The details of Remuneration Policy are stated in the Corporate Governance Report. The Remuneration policy is annexed to this Directors Report as Annexure I.

12. MEETINGS

During the year 4 Board Meetings and 4 Audit Committee Meetings were convened and held. The details of the same are given in the Corporate Governance Report which is part of this report. The intervening gap between the Meetings was within the period prescribed under the Act.

13. AUDIT COMMITTEE

The composition of the Audit Committee is in line with the provisions of Section 177 of the Act read with Regulation 18 of SEBI Listing Regulations. The Chairman of the Audit Committee is an Independent Director. The details of the composition of the Audit Committee are given in the Corporate Governance Report which is part of this report. During the year all the recommendation of the Audit Committee were accepted by the Board.

14. STAKEHOLDERS RELATIONSHIP COMMITTEE

The composition of the Stakeholders Relationship Committee (SRC) is in line with the Section 178 of the Act read with Regulation 20 of SEBI Listing Regulations.

15. NOMINATION AND REMUNERATION COMMITTEE

The composition of the Nomination and Remuneration Committee (NRC) is in line with the Section 178 of the Act read with Regulation 19 of SEBI Listing Regulations. The details of meetings and their attendance are included in the Corporate Governance Report.

16. CORPORATE SOCIAL RESPONSIBILITY

During the financial year 2025-26, the Company continued to discharge its Corporate Social Responsibility ("CSR") obligations in accordance with the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time.

The Company has constituted a Corporate Social Responsibility Committee, the composition and details of the meetings of which are set out in the Corporate Governance Report, forming part of this Annual Report.

The CSR expenditure incurred during the year was based on the recommendations of the Corporate Social Responsibility Committee and approved by the Board of Directors in accordance with the Company's CSR Policy and the applicable provisions of the Companies Act, 2013. The Company remains committed to implementing its CSR initiatives in a transparent and responsible manner while ensuring compliance with the statutory framework governing Corporate Social Responsibility.

Detailed information can be found in the Corporate Governance Report and the Annexure II to the Director's report pertaining to the details of expenditure incurred towards the Corporate Social Responsibility.

17. EXTRACT OF ANNUAL RETURN

In accordance with Section 134 (3) (a) of the Companies Act 2013, annual return form is available on the Company's website www.chowgulesteamhsips.co.in the 'Investor Information' section.

18. DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Act, the Board of Directors, to the best of its knowledge and ability, hereby state and confirm that:

a) in the preparation of annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same.

b) appropriate accounting policies have been selected and applied consistently and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2026 and the profit of the Company for that period.

c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) the annual accounts have been prepared on a 'going concern' basis.

e) proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.

f) that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.

19. AUDITORS Statutory Auditors

Pursuant to the Section 139 of Companies Act, 2013 and other applicable rules there under, M/s. M. N. Chokshi & Co. LLP., Chartered Accountants (Firm Registration No. FRN 101899W/W100812) were appointed as Statutory Auditor of the Company for 5 consecutive financial years commencing from conclusion of 59th Annual General Meeting to conclusion of the 64th Annual General Meeting. i.e. to audit the accounts for the period commencing from 2022-2023 until 2026-2027. Accordingly, M/s. M. N. Chokshi & Co. LLP., Chartered Accountants (Firm Registration No. FRN 101899W/W100812) shall continue to be the Statutory Auditors of the Company till FY 2026-2027.

Secretarial Auditors

M/s. Pranay D. Vaidya & Co., Practicing Company Secretaries, were appointed as the Secretarial Auditors of the Company by the Board of Directors at its meeting held on May 26, 2026, pursuant to the recommendation of the Audit Committee.

Further, in accordance with the provisions of Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Members of the Company, at the Annual General Meeting held on August 08, 2025, approved the appointment of M/s. Pranay D. Vaidya & Co. as the Secretarial Auditors of the Company for a term of five consecutive financial years commencing from FY 2025-26 and ending with FY 2029-30.

The Firm has conveyed its consent and confirmed its eligibility to continue as the Secretarial Auditors of the Company for the aforesaid tenure. During the said term, M/s. Pranay D. Vaidya & Co. shall conduct the Secretarial Audit under Section 204 of the Companies Act, 2013 and shall also issue the Secretarial Compliance Reports and such other certificates, reports and confirmations as may be required under the applicable provisions of the SEBI (LODR) Regulations, 2015 and other applicable laws.

The Secretarial Audit Report for the financial year 2025-26 forms part of this Directors' Report. as Annexure III. The said Report does not contain any qualification, reservation, adverse remark or disclaimer.

20. MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION

This Director's Report has been approved and adopted by Board of Directors of the Company as on 26th May 2026 and as on that date there have been no material changes and commitments which have occurred between the end of financial year and the date of this report which can have impact on financial position of the Company.

21. LOANS, INVESTMENT AND GUARANTEES ETC

During the year under review, the Company has not advanced any loans or made any investments. The balance of Outstanding loans and advances are depicted in Note No. 5, Note No. 11 and Note No. 33 of the Standalone Financial Statements forming integral part of the balance sheet

22. CONVERSATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EARNING AND OUTGO

In accordance with the requirements of Rule 8 (A) of the Companies (Accounts) Rules 2014, a statement annexed hereto gives the particulars as required under the said rules and forms part of this Report (Annexure IV).

23. STATEMENT OF PARTICULARS OF APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL

The information required under section 197 of the Act read with Rule 5(1)(i) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company and Directors is enclosed as “Annexure V to this report.

24. POLICY ON RELATED PARTY TRANSACTIONS

The Company has formulated a policy on materiality of Related Party Transactions for dealing with such transactions in line with the requirements of Listing Regulations. The policy on Related Party Transactions is available on the Company's website viz. chowgulesteamships.co.in. The details of Related party Transaction as required as is Annexed to this Directors Report as Annexure VI (AOC 2).

25. POLICY ON RISK MANAGEMENT

The Risk Management Policy of the Company evaluates various risks surrounding the business of the Company and seeks to review and upgrade its risk management process. The Board of Directors formulates strategies and takes necessary steps

26. SIGNIFICANT/MATERIAL ORDERS PASSED BY THE REGULATORS:

There were no significant material orders passed by the Regulators or Courts or Tribunals impacting the going concern status of the Company and its operations in future.

27. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has in place adequate internal controls to commensurate with the size, scale and complexity of its operations. To maintain its objectivity and independence, the Internal Auditors report to the Chairman of the Audit Committee of the Board. Internal Auditors monitor and evaluate the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company.

28. WHISTLE BLOWER POLICY/VIGIL MECHANISM:

Company has established a Vigil Mechanism for enabling the Directors and Employees to report genuine concerns. The Vigil Mechanism provides for: -

(a) Adequate safeguards against victimization of persons who use the Vigil Mechanism; and

(b) Direct access to the Chairperson of the Audit Committee of the Board of Directors of the Company in appropriate or exceptional cases. The Audit Committee of the Board has been entrusted with the responsibility of overseeing the Vigil Mechanism.

The Whistle Blower Policy is available on the website of the Company viz www.chowgulesteamships.co.in

29. PREVENTION, PROHIBITION AND REDRESSAL OF SEXUAL HARASSMENT AT WORKPLACE:

The Company as an organization is committed to provide a healthy environment to all employees and thus does not tolerate any discrimination and/or harassment in any form. The Company ensures that there is healthy and safe atmosphere for every employee at the workplace. There was no case pertaining to any harassment filed during the year.

30. DEPOSITS (SECTION 73 OF THE COMPANIES ACT 2013):

The Company has not accepted any deposits during the period under review.

31. SECRETARIAL STANDARDS:

The Directors state that applicable Secretarial Standards with regard to Meeting of Board of Directors (SS-1) and General Meetings (SS-2) as well as the Report on Board of Directors (SS-4) issued by The Institute of Company Secretaries of India, have been duly followed by the Company.

32. INSIDER TRADING:

In compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, your Company has constituted a comprehensive Code, which lays down guide lines and advises the Directors and Employees of the Company on procedures to be followed and disclosures to be made while dealing in securities of the Company.

The said policy can be viewed on our website: www.chowgulesteamships.co.in

33. GENERAL:

Your Directors state that no disclosure or reporting is required in respect of the following matters as there were no transactions on these items during the year under review:

a. Issue of equity shares with differential rights as to dividend, voting or otherwise;

b. The Company does not have any scheme of provision of money for the purchase of its own shares by employees or by trustees for the benefit of employees;

c. No fraud has been reported by the Auditors to the Audit Committee or the Board.

d. There are no shares lying in demat suspense account/unclaimed suspense account. Hence no disclosure is required to be given for the same

e. A Summons dated 02TH February 2026 was received on Tuesday, February 3, 2026 from the Directorate of Enforcement (ED), Panji Zonal Office Goa to the Director of Chowgule Steamships Limited (under Section 37 (1) and (3) of FEMA, 1999 read with section 131 (1) of the Income Tax Act, 1961 and Section 30 of the Code of Civil Procedure, 1908).

f. There is no change in nature of business of the company

g. During the year under review no amounts were required to be transferred to the IEPF / details of unclaimed dividends transferred

h. The Basic and diluted EPS of the Company is -0.04

i. The Independent Directors of the company have issued a declaration of Independence.

34. DETAILS OF APPLICATION MADE OR PROCEEDING PENDING UNDER INSOLVENCY AND BANKRUPTCY CODE, 2016:

During the year under review there were no application made or any proceedings were pending under insolvency and Bankruptcy Code, 2016.

35. DETAILS OF DIFFERENCE BETWEEN VALUATION AMOUNT ON ONE-TIME SETTLEMENT AND VALUATION WHILE AVAILING LOAN FROM BANKS AND FINANCIAL INSTITUTIONS:

During the year under review there were no instances of One-Time Settlements.

36. SEXUAL HARASSMENT AT WORKPLACE:

Our Company is committed to maintaining a safe, respectful, and inclusive workplace, free from any form of sexual harassment. In compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) the company has implemented all laws, provisions and policies for the time being in force

During the year under review, 0 (No) case of sexual harassment was reported in line with POSH guidelines.

37. MATERNITY BENEFIT COMPLIANCE:

During the year under review, the company complied with the provisions of the Maternity Benefit Act 1961 along with all the applicable amendments & undertook necessary measures to ensure compliance for all eligible employees.

38. ACKNOWLEDGEMENTS:

Directors place on records their appreciation for the continuing support and co-operation from the customers, vendors, dealers, distributors, resellers, bankers, shareholders, State Industries electricity and other Government departments. The Directors also take this opportunity to thank the employees for their dedicated service throughout the year in mitigating these risks.