Your Directors are pleased to present the 50^th Annual Report together with the Audited financial statements of the Company for
the year ended 31^st March, 2026.

1. FINANCIAL RESULTS AND STATE OF THE COMPANY'S AFFAIRS:

The Company's financial performance for the year under review along with previous year's figures is given hereunder:

2. ACQUISITION OF NEW DREDGER

As informed in previous year's Board's Reports we are happy to give you update on procurement of 12000 m3 TSHD dredgers
by DCI being constructed at M/s Cochin Shipyard Limited under the Atma Nirbhar Program. The agreement between Dredging
Corporation of India and Cochin Shipyard Limited was signed on 17/03/2022 and tripartite agreement between DCI-CSL-
IHC was signed on 13/04/2022. The Cost of the dredger is 104.59 million EUROs. The first dredger was already launched on
18.10.2025, and the process of Commissionimng & Trials of Major equipment is underway. All the installments / payments due
under the said agreement in the financial year 2025-2026 were paid by DCI within time limit. Yard is expediting to complete
the Sea Trails and initiate the Protocols of delivery by October 2026.

DCI envisions fleet modernization and capacity building, by acquisitoin of Higher capacity THSDs, CSDs, Inland Cutter Dredgers
ranging from 350-650 m3 , Water Injection Dredger over the next Five years, This strategic investment would boost DCI's
capacity to meet the dredging requirements at Indian Major Ports as outlined in the Maritime Vision 2030 and Amrit Kaal Bharat
2047. Realizing this vision, process for acquisition of 2^nd 12,000m3 TSHD is underway and we are committed to place Order
in FY 2026-27.

3. CAPACITY UTILIZATION

The capacity utilization in number of days and quantity dredged as against the targets during the year is as under:-

The lower capacity utilization is mainly because of dry-docking and ageing of dredgers.

4. DCI FLEET

The Company has, 10 Trailer Suction Hopper Dredgers (TSHDs), one Cutter Suction Dredger (CSD), one Back Hoe Dredger
and one Inland Cutter Suction Dredger apart from other ancillary crafts. Fleet details are as under:

5. DREDGING OPERATIONS

A) Important contracts completed during the
year: 2025-26

i) Maintenance Dredging in the Hooghly

Estuary Shipping Channel of Syama Prasad
Mookerjee Port, Kolkata - The Company
successfully completed the first year of the
five-year maintenance dredging contract
for the period from 01.08.2024 to 31.07.2025
during FY 2025-26..

ii) Undertaking Dredging at Approach

Channel of Multi Model IWT Terminal, Haldia
(3 years) - Completed for 1^st year from
12.08.2025 to 20.03.2026.

iii) Maintenance dredging of 8.5 Million CuM from
Approach Channel, Entrance Channel, Turning
Circle and Docks of Paradip Port Authority for
the year 2025-26.

iv) Capital (Grab) dredging works at different
locations in the Port Dock Areas of Paradip Port
Authority from 07.09.2025 to 02.12.2025.

v) Maintenance Dredging at the New Sand Trap
(NST), its approaches, and other designated
areas of Visakhapatnam Port Authority for
FY 2024-25 - The Company successfully
completed the maintenance dredging works
during FY 2025-26Dredging for Maintenance of
Channels and Basins at Cochin Port for FY 2024¬
25 - The Company successfully completed the
maintenance dredging works for channels and
basins at Cochin Port during FY 2025-26.

vi) Dredging of Ernakulam channel and Wharf in
connection with docking & undocking of INS
VIKRAMADITYA (Phase-II) for Cochin Shipyard
Limited from 23.10.2024 to 05.05.2025.

vii) Post Monsoon Maintenance Dredging at New
Mangalore Port for the year 2025-26.

viii) Maintenance Dredging of Mumbai Harbour
Channel and JN Port Channel for FY 2024-25
- The Company successfully completed the
maintenance dredging works in the Mumbai
Harbour Channel and the channel of Jawaharlal
Nehru Port Authority during FY 2025-26.

ix) Dredging in the Navigational Channel,
Kandla Creek, and alongside Cargo Berths/
Oil Jetties at Deendayal Port Authority for the
period 2024-27 - The Company successfully
completed the first year of the contract,
covering the period from 09.08.2024 to
08.08.2025, during FY 2025-2

x) Development and Maintenance of a 32-metre
Fairway Width in North Eastern Region (NER)
Waters through dredging, bandalling, channel
marking, river training, and allied works for a
period of three years (2024-25 to 2026-27) -
The Company successfully completed the first
year of the contract during the FY 2025-26 .

xi) Chartering of DCI BH-1 to M/s. RKEC
Projects Limited for dredging operations
at Visakhapatnam.

xii) Chartering of DCI BH-1 to M/s. JP Offshores for
dredging operations at Visakhapatnam.

B) New Contracts taken up during the year: 2025-26

i) Maintenance dredging of Mumbai harbour
channel and JN Port channel for 5 years from
2025-25 to 2029-30.

ii) Dredging for maintenance of channels and
basins at Cochin Port for the year 2025-26.

iii) Annual Maintenance dredging at New Sand
Trap (NST), its Approaches and other areas
of VPA i.e. OHTB,OB-I, OB-II, VCTPL, IC
and IHTB etc. and to pump the dredged
material ashore for 3 years period i.e.2025-
26,2026-27 and 2027-28.

iv) Dredging in front of existing WQ-1, WQ-2,
WQ-3 Berths in the Northern Arm of Inner
Harbour up to (-)15.50mDredging Depth of
Visakhapatnam Port Authority.

v) Removal of spillage and loose materials /
disturbed seabed in the Inner Harbour basin
& approach channel at VOC Port by engaging
Backhoe Dredger through M/s.DCI Ltd.

6. SAFETY MANAGEMENT SYSTEM (ISM)

(a) DCI DR-XII, DR-XIV, DR-XV, DR-XVI, DR-XVII, DR-

XIX, DR-XX, DR-XXI (hold valid Safety Management

Certificate (SMC).

(b) DCI Dredge VIII hold valid Indian Coastal Vessel

Safety Certificate.

(c) DCI holds a Document of Compliance (DOC) valid
till 24.06.2027. The same is being endorsed every
year after annual verification audit by DG Shipping.

Ship Security System (ISPS):

(a) DCI DR-XII, DR-XIV, DR-XV, DR-XVI, DR-XVII, DR-XIX,
DR-XX, DR-XXI hold valid International Ship Security
Certificate (ISSC).

(b) DCI Dredge VIII, DCI Dredge XI and DCI Multicat-1
ensure compliance with regard to Ship Security
measures as defined in Annex -11 of the Notification
for Indian Coastal Vessels.

Quality Management System (ISO 9001:2015):

The QMS (Quality Management System) Renewal Audit
was held in March 2025 and the audit team recommended
for issuance of certificate. ISO 9001:2015 certificate, valid
for next 3 years was issued.

Environmental Management System (ISO 14001:2015):

The EMS Renewal Audit was held in March 2025 and the
audit team recommended for issuance of certificate. ISO
14001:2015 certificate, valid for next 3 years was issued.

Maritime Labour Convention (MLC) -2006

All dredgers of DCI, except dumb vessel DCI Dredge
XVIII, currently hold valid MLC-2006 certificates.

OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT
SYSTEM (OHSMS) (ISO 45001:2018):

OHSMS Stage -I & Stage -II audits held in February
2026 and the audit term recommended for issuance of
certificate. A draft ISO 45001:2018, certificate, valid for the
next 3 years was issued. The original certificate is awaited.

7. MEMBERS/ INVESTOR SERVICES

The shares of the Company are listed on BSE Limited
(BSE) and National Stock Exchange of India Limited (NSE).
The shares of the Company are dematerialized with both
the depositories, NSDL and CDSL. M/s. KFin Technologies
Limited, Hyderabad are the R&T Agents of the Company.

8. CHANGE IN NATURE OF BUSINESS:

The Company has not changed its nature of business
during the relevant financial Year 2025-26.

9. HIGHLIGHTS OF PERFORMANCE OF
SUBSIDIARIES, ASSOCIATES ANDJOINTVENTURE
COMPANIES AND THEIR CONTRIBUTION TO THE
OVERALL PERFORMANCE OF THE COMPANY
DURING THE PERIOD UNDER REPORT

The Company did not have any subsidiary, associate,
or joint venture company during the Financial Year
2025-26. Accordingly, the preparation of Consolidated
Financial Statements was not required and, therefore, no
Consolidated Financial Statements have been prepared
for the Financial Year.

10. CAPITAL AND DEBT STRUCTURE

A. Any changes in the Capital Structure of
the Company during the year including the
following:

i. CHANGES IN SUBSCRIBED, ISSUED, PAID-UP
SHARE CAPITAL:

During the year under review, there is no
changes in subscribed, issued, paid-up
share capital .

ii. CHANGES IN AUTHORIZED SHARE CAPITAL:

During the Financial Year 2025-26, Company
has increased its Authorized share capital
from H 30,00,00,000 (Rupees Thirty Crore
only) divided into 3,00,00,000 Equity Shares
of H 10 each to, H 60,00,00,000 (Rupees Sixty
Crore only) divided into 6,00,00,000 Equity
Shares of Rs 10 each by creation of additional
3,00,00,000 Equity Shares of H 10 each ranking
pari passu in all respects with the existing
Equity Shares of the Company.

iii. RECLASSIFICATION OR SUBDIVISION OF
AUTHORIZED SHARE CAPITAL:

There were no reclassifications or subdivision
of Authorized share capital during the
year under review.

iv. REDUCTION OF SHARE CAPITAL:

There was no Reduction of share capital during
the year under review.

v. BUYBACK OF SHARES:

There was no buyback of share capital during
the year under review.

vi. CHANGES IN CAPITAL STRUCTURE RESULTING
FROM RESTRUCTURING:

There was no restructuring of capital during
the year under review.

vii CHANGES IN SHARE TRANSFER AND SHARE
TRANSMISSION:

There were no transfer and transmission of
securities during the year under review.

B. ISSUE OF EQUITY SHARES WITH DIFFERENTIAL
RIGHTS:

There was no issue of Equity Shares with Differential
Rights during the year under review.

C. ISSUE OF SWEAT EQUITY SHARES:

There was no issue of Sweat Equity Shares during
the year under review.

D. DETAILS OF EMPLOYEE STOCK OPTIONS:

There were no shares issued under Employee stock
options during the year under review.

E. SHARES HELD IN TRUST FOR THE BENEFIT OF
EMPLOYEES WHERE THE VOTING RIGHTS ARE
NOT EXERCISED DIRECTLY BY THE EMPLOYEES:

There were no shares held in trust for the benefit
of employees where the voting rights are not
exercised directly by the employees during the
year under review.

F. ISSUE OF DEBENTURES, BONDS OR ANY NON¬
CONVERTIBLE SECURITIES:

During the Financial Year 2025-26 Company
has issued, secured, unrated, unlisted and
redeemable Non-Cconvertible Debentures to M/s
Cochin Shipyard Limited. Size of the issue was
H 111,48,00,000/-.

G. ISSUE OF WARRANTS:

There was no Issue of warrants during the
year under review.

H Securities of the Company are not suspended from
trading during the year under review.

I. During the year under review, statement of deviation
in the use of proceeds from the objects stated
in the offer document or explanatory statement
to the notice for the general meeting for public
issue, rights issue, preferential issue in pursuance
to Regulation 32(4) of the SEBI(LODR), 2015 is not
applicable on the Company.

J. The Audit Committee accorded approval and
recommended the Related Party Transactions
for the Financial Year 2026-27 to the Board for
its approval. Accordingly, the Board accorded
approval to the recommendations of the Audit
Committee. The same was subsequently approved
by the shareholders through Postal Ballot.

PARTICULARS PURSUANT TO SECTION 134 (3) OF THE
COMPANIES ACT 2013 ARE AS UNDER:-

11. The Annual Return pursuant to Section 92(3) read with
Section 134(3)(a) of the Companies Act, 2013, and rule
12(1) of the Company (Management & Administration)
Rules, 2014 for the Financial Year ended 31^st March 2026 is
available on the Company's website and can be accessed
athttps://dredqe-india.com/files/MGT-7.pdf.

12. Eight meetings of the Board of Directors were held
during the year. The particulars of the meetings held
and attendance of each Director are detailed in the
Corporate Governance Report. The Company has
duly constituted Audit Committee, Nomination and
Remuneration Committee, Stakeholders Relationship
Committee, Corporate Social Responsibility Committee
and Risk Management Committee and the details of the
same including their constitution, Number of meetings
etc., are included in the Corporate Governance Report.

13. Directors' Responsibility Statement:- Pursuant to the
provisions of Section 134(3)(c) & 134 (5) of the Companies
Act, 2013 your Directors state that:

i) in the preparation of the Annual Accounts for the year
ended March 31, 2026, the applicable accounting
standards had been followed along with a proper
explanation relating to material departures;

ii) the Directors had selected such accounting policies,
applied them consistently and made judgements
and estimates that are reasonable and prudent to
present a true and fair view of the state of affairs of
the Company at the end of the financial year and its
profit or loss for that period;

iii) the Directors had taken proper and sufficient
care to maintain adequate accounting records in
accordance with the provisions of the Act, ensuring
the safeguarding of the Company's assets and for
the prevention and detention of fraud and other
irregularities;

iv) the Directors had prepared the Annual Accounts on
a going concern basis;

v) the Directors, had laid down internal financial
controls to be followed by the Company and that
such internal financial controls are adequate and
operating effectively;

vii) the Directors had devised proper systems to ensure
compliance with the provisions of all applicable
laws and that these systems were adequate and
operating effectively.

14. DETAILS IN RESPECT OF FRAUDS REPORTED
BY AUDITORS UNDER SUB-SECTION (12) OF
SECTION 143 OTHER THAN THOSE WHICH ARE
REPORTABLE TO THE CENTRAL GOVERNMENT

No fraud was reported by Auditors to the Audit
Committee or the Board as per section 143(12) of the
Companies Act, 2013.

15. During the year, all the Independent Directors have
met the requirements specified under Section 149(6)
of the Companies Act, 2013 for holding the position
of 'Independent Director' and necessary declaration
from each Independent Director under Section 149
(7) of the Companies Act, 2013 was received and also,
they have registered their names in the Independent
Director's Databank.

16. The Independent directors are paid a sitting fee of ?
20,000/-(Rupees Twenty Thousand Only) for attending
each meeting of the Board or its committees and they do
not receive any other remuneration. Non-Independent
Directors are not paid any remuneration or sitting
fees by the Company. The Company has constituted
a Nomination and Remuneration committee as per
Section 178, comprising three Independent Directors,

which consider different criteria for recommendation of
person as directors like qualifications, positive attributes,
independence etc of a director. Terms and conditions
for appointment of Director is available on website
of the company https://www.dredge-india.com/

investors/terms-and-conditions-for-the-appointment-of-
independent-directors. Remuneration policy is available
on website of the companyhttps://www.dredqe-india.
com/investors/remuneration-policy

17. Explanations or comments by the Board on every
qualification, reservation or adverse remark or
disclaimer made.

MANAGEMENT COMMENTS ON STATUTORY
AUDITORS' REPORT

The Chartered Accountant firm M/s. Grandhy & Co., Chartered
Accountants, Hyderabad was appointed by the Comptroller
and Auditor General of India as Statutory Auditors for auditing
the accounts of the Company and compliance with applicable
laws, regulations, and accounting standards for the financial
year 2025-26. Pursuant to Section 142 (1) of the Companies
Act, 2013 the remuneration of the Auditors has to be approved
by the Members at the Annual General Meeting (AGM). In the
previous AGM the Board of Directors of the Company was
authorized to fix the fees payable to the Statutory Auditors. It
was recommended to authorize the Board of Directors of the
Company for fixation of remuneration for statutory auditors
for FY 2026-27.

The Statutory Auditors of the Company have given a report on
the accounts of the Company for the financial year 2025-26.
They have drawn attention under 'Emphasis of Matter' to the
following notes of the Financial Statements:

A. Note No. 29(19) relating to assets classified as held for
sale - DCl Dredger XI - The board accorded approval
for declaration of Dredger XI as Scrap and authorized
disposal of the asset through tendering process.
Accordingly, as the asset has been identified for
disposal and the disposal process has been initiated, the
carrying value of DR XI amounting to H 54,65,123/- as on
31.03.2026 has been reclassified under "Assets Classified
as Held for Sale" and disclosed under Current Assets in
the financial statements.

The issues have been adequately explained in the respective
Notes referred to by the Auditors.

REVIEW OF ACCOUNTS BY COMPTROLLER &
AUDITOR GENERAL OF INDIA (C&AG)

Review and comments of the C&AG on financial statements
for the FY 2025-26 form part of the financial Statements of the
Company. The Management's comments on same are being
placed with the report of Statutory Auditors of your Company
elsewhere in this Annual Report.

MANAGEMENT COMMENTS ON SECRETARIAL AUDIT REPORT

The "Secretarial Audit Report" from the secretarial auditor in Form MR-3 as required under Section 204 of the Companies Act, 2013
read with rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this report.
The Management's Response on the qualification in the Secretarial Auditor Report is mentioned below:

18. PARTICULARS OF LOANS, INVESTMENTS,
GUARANTEES AND SECURITIES UNDER
SECTION 186

Pursuant to the provisions of Section 186 of the Companies
Act, 2013, the Company has not made any investments,
provided any loans, given any guarantees, or provided
any securities during the Financial Year 2025-26.

19. CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION &FOREIGN EXCHANGE EARNINGS
AND OUTGO:

The Particulars relating to conservation of energy,
technology absorption, foreign exchange earnings and
outgo as required to be disclosed under Section 134(3)
(m) of the Companies Act 2013 read with Companies
(Accounts) Rules 2014 are provided in Annexure -1
to this report.

20. CONTRACTS OR ARRANGEMENTS WITH
RELATED PARTIES

Details of contracts/arrangements/transactions with
related parties which are required to be reported in Form
No. AOC-2 in terms of Section 134(3)(h) read with Section
188 of the Act and Rule 8(2) of the Companies (Accounts)
Rules, 2014 are provided in Annexure -3 to this Report.

21. TRANSFER TO RESERVES

The details of amount transferred to reserves are
given in note no. 12 of the Notes forming part of the
financial statements.

22. DIVIDEND

Your Directors did not recommend any dividend for
the financial year 2025-26. The Dividend Distribution
Policy, in terms of Regulation 43A of the Securities
and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 ("SEBI Listing
Regulations"), is available on the Company's website
https://dredqe-india.com/files/dciddp.pdf

23. MATERIAL CHANGES AND COMMITMENTS, IF ANY,
AFFECTING THE FINANCIAL POSITION OF THE
COMPANY WHICH HAVE OCCURRED BETWEEN
THE END OF THE FINANCIAL YEAR OF THE
COMPANY TO WHICH THE FINANCIAL STATEMENTS
RELATE AND THE DATE OF THE REPORT

There have been no material changes and commitments,
which affect the financial position of the company which
have occurred between the end of the financial year
to which the financial statements relate and the date
of this Report.

24. RISK MANAGEMENT POLICY

Risk Management is the process of identification,
assessment and prioritization of risks followed by

coordinated efforts to minimize, monitor and mitigate/
control the probability and/or impact of unfortunate
events or to maximize the realization of opportunities.
The Company has laid down a comprehensive Risk
Assessment and Minimization Procedure which is
reviewed from time to time. These procedures are
reviewed to ensure that executive management controls
risk through means of a properly defined framework. The
major risks have been identified by the Company and
its mitigation process/measures have been formulated
in the areas such as business, project execution, event,
financial, human, environment and statutory compliance.
Further key risks identified and their mitigations are
covered in Management Discussion and Analysis Report,
which forms part of this Annual Report. Weblink of the
Risk Management Policy of the Company ishttps://
dredge-india.com/files/riskmanagementpolicv.pdf

25. CORPORATE SOCIAL RESPONSIBILITIES (CSR)

The Company firmly believes that the commitment
towards playing a defining role in the development
of its stakeholders extends to uplifting lives of the
weaker segments of the society living in and around
its areas of operation. The principles of Corporate
Social Responsibility (CSR) are deeply imbibed in your
Company's corporate culture. The provisions of section
135 towards the Corporate Social Responsibility are
applicable on the Company.

In pursuant to the provisions of Section 135 and Schedule
VII of the Companies Act, 2013, the Board of Directors of
the Company had duly constituted the Corporate Social
Responsibility (CSR) Committee.

The details of the members of the CSR Committee and
the details of the meeting of CSR Committee along
with their attendance held during the year are given in
Corporate Governance Report

Mr. Rajiv Jalota (DIN : 00152021) is the Chairman
of the Corporate Social Responsibility Committee
as on 31.03.2026.

The Company has a duly approved Corporate Social
Responsibility (CSR) Policy. There has been no change
in the development and implementation of the
Company's CSR Policy during the year. A brief outline
of the Company's CSR Policy and the web link thereto,
in pursuance of Section 134(3)(o) of the Companies Act,
2013, are provided below.

The Corporate Social Responsibility Committee has
been entrusted with the responsibility of recommending
to the Board the activities/projects/programs to be
undertaken by the Company as per its Corporate Social
Responsibility Policy. The terms of reference of the CSR
Committee include the matters specified in Section
135 of the Act. Weblink of the CSR Policy ishttps://
www.dredge-india.com/left-related-links/corporate-
social-responsiblities

Further, pursuant to Rule 8(1) of the Companies (CSR
Policy) Rules, 2014, The Annual Report on CSR activities
is annexed and marked as Annexure -2 to this Report.

26. ANNUAL EVALUATION OF THE PERFORMANCE
OF THE BOARD, ITS COMMITTEES AND OF
INDIVIDUAL DIRECTORS

The Board implemented a formal procedure to assess its
performance, along with its Committees and Individual
Directors, including the Chairman. This evaluation
involved a structured process covering various aspects
of the Board's functioning, such as composition,
Committee effectiveness, experience, competencies,
fulfilment of specific duties and obligations, contribution
to meetings, and overall governance issues.

The evaluation of Independent Directors was conducted
by the entire Board, excluding the Independent Director
under evaluation.

27. STATEMENT REGARDING OPINION OF THE
BOARD WITH REGARD TO INTEGRITY,
EXPERTISE AND EXPERIENCE (INCLUDING
THE PROFICIENCY) OF THE INDEPENDENT
DIRECTORS APPOINTED DURING THE YEAR

During the Financial Year 2025-2026, the following
independent directors were appointed.

1. Shri Vinod Kumar Pipersenia, IAS (Retd.)
w.e.f 02.07.2025

2. Shri Sanjay pant, IRS (Retd.,) w.e.f 03.07.2025

3. Shri Rajiv Jalota, IAS (Retd.) w.e.f 11.07.2025

4. Smt Krishna Das w.e.f 09.03.2026

5. Shri Devendra Kumar Pathak, w.e.f 18.03.2026

In the opinion of the Board, all the Independent Directors
possess requisite expertise, integrity, experience
and proficiency.

28. COMPANIES/BODIES CORPORATE WHICH
BECAME OR CEASED TO BE SUBSIDIARY,
JOINT VENTURE OR ASSOCIATE AS PER THE
PROVISIONS OF THE COMPANIES ACT, 2013:

During the Financial Year 2025-2026, the Company did
not have any subsidiaries or material subsidiary, joint
ventures or associate companies. Hence statement
containing salient features of the financial statement of
Subsidiaries/associates companies/joint venture are not
provided in AOC -1.

29. DETAILS RELATING TO DEPOSITS, COVERED
UNDER CHAPTER V OF THE COMPANIES ACT,
2013

The Company does not have any deposits which are
in compliance with the requirements of or are covered
under Chapter V of the Act.

30. DETAILS OF DEPOSITS WHICH ARE NOT IN
COMPLIANCE WITH THE REQUIREMENTS OF
CHAPTER V OF THE ACT

The Company does not have any deposits which are not in
compliance with the requirements of Chapter V of theAct.

31 DETAILS OF SIGNIFICANT AND MATERIAL
ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS IMPACTING THE
GOING CONCERN STATUS AND COMPANY'S
OPERATIONS IN FUTURE

There were no significant and material order passed by
the Regulators / Courts / Tribunals which impacts the
going concern status and company's operations in future.

32. INTERNAL FINANCIAL CONTROL

The Company's internal control systems are
commensurate with the nature of its business, the size and
complexity of its operations and such internal financial
controls with reference to the financial statements are
adequate. During the year, such controls were tested
and no reportable material weakness in the design or
operation was observed.

33. COST AUDITOR AND COST RECORDS

Maintenance of cost records and requirement of cost
audit as prescribed under the provisions of Section 148(1)
of the Act are not applicable for the business activities
carried out by the Company.

34 VIGIL MECHANISM AND WHISTLE BLOWER
POLICY

The Company has in place a robust vigil mechanism and
Whistle Blower Policy for reporting genuine concerns.
All cases reported as part of whistleblower mechanism
are taken to their logical conclusion within a reasonable
timeframe. The Whistle-Blower Policy is available on the
Company's website athttps://dredqe-india.com/files/
DCI-Whistle-Blower-Policy.pdf.

35. DETAILS OF APPLICATION MADE OR
PROCEEDING PENDING UNDER INSOLVENCY
AND BANKRUPTCY CODE 2016

No application has been made under the Insolvency
and Bankruptcy Code by your Company. Hence, the
requirement to disclose the details of the application
made or any proceeding pending under the Insolvency
and Bankruptcy Code, 2016 during the year along
with their status as at the end of the financial year is
not applicable.

36. THE DETAILS OF DIFFERENCE BETWEEN
AMOUNT OF THE VALUATION DONE AT THE TIME
OF ONE TIME SETTLEMENT AND THE VALUATION
DONE WHILE TAKING LOAN FROM THE BANKS
OR FINANCIAL INSTITUTIONS ALONG WITH
THE REASONS THEREOF

During the year under review, there has been no instance
of one-time settlement of loans taken from bank and
financial institutions.

37. INSURANCE

The Company has taken appropriate insurance
for its assets.

38. DISCLOSURE AS PER SECTION 197 OF THE
COMPANIES ACT AND THE REQUIREMENTS
OF COMPANIES (APPOINTMENT AND
REMUNERATION OF MANAGERIAL PERSONNEL)
RULES 2014.

Pursuant to provisions of Section 197 of the Companies Act,
2013, read with the Rule 5 of Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014,
the names and other particulars of employees along with
the ratio of remuneration of each Director to the median
employee's remuneration and such other details forms
part of Directors' Report and is Annexedto this Report.

39. VENDOR DEVELOPMENT

This is a continuous process and DCI procures Spares,
stores, Fuel & Lubes and services on a regular basis from
suppliers spread all over the world. DCI is updating the
supplier-base on regular basis by onboarding them
post due process of scrutiny & review. DCI has adopted
e-procurement and GeM process, as per Govt. of India
guidelines, where emphasis was given to facilitate and
enable the vendors by way of training support and hand
holding support to participate in the e-procurement
processes of the Company. Tenders are published in DCI
official website along with Central Public Procurement
Portal and GeM portal for wider publicity so that MSMEs
can also participate. In view that out of the total annual
procurement, a major portion is fuel, lubes and OEM
spares which cannot be procured from MSME Vendors
and further that since most of dredgers of DCI have been
built at Netherlands and therefore most of the spare
need to be imported from OEMs abroad, the Company
has represented for relaxation for implementation of the
Public Procurement Policy wherein mandatory provision

of 20% procurement was required from MSMEs. However,
DCIL incorporate the clause in tenders as public
procurement policy and following the same.

40. R&D ACTIVITIES

DCI Dredge Aquarius was fitted with an indigenously
developed Programmable Logic Controller (PLC) in place
of existing PLC system which was imported and giving
frequent problems because of non-availability of spare
parts/ services of the Original Equipment Manufacturer
abroad. The newly installed PLC has been found to be
cost effective and working satisfactorily.

41. CORPORATE GOVERNANCE AND MANAGEMENT
DISCUSSION AND ANALYSIS REPORT

Pursuant to the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 (SEBI (LODR) Regulations, 2015)
Management Discussion and Analysis Report, Corporate
Governance Report, Secretarial Audit Report, and
Certificate from the Company Secretary in practice
regarding compliance of conditions of Corporate
Governance, Certificate of Non-Disqualification of
Directors, Compliance Certificate under Regulation 17(8)
of SEBI (LODR) Regulations, 2015 are attached, forming
part of this Report.

42. MAN POWER:

The total number of employees (both Shore and Floating)
in the Company, as on March 31, 2026 was as under:

43. INDUSTRIAL RELATIONS:

The industrial relations in the Company continued to be
cordial throughout the year under report.

44. EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:

The manpower position with regard to various reserved categories is as indicated hereunder:

A EMPLOYMENT OF SC/ST CANDIDATES

The Company continued its efforts to fulfill its obligation in providing employment opportunities to SC/ST candidates,
in accordance with the Government Policy. The overall representation of SC/STs in the Company (both Shore and
Floating Establishments, but excluding MPWs) as on March 31, 2026.

B. EMPLOYMENT OF EX-SERVICEMEN

The representation of ex-servicemen (shore based employees) in Group 'C' and 'D' categories in the Corporation was
Nil and Nil against the percentage of 14.5% and 24.5% respectively prescribed by the Government.

C. EMPLOYMENT OF PHYSICALLY CHALLENGED:

The number of Physically Challenged employees in the Company as on 31^st March, 2026 is 02 (Two). The group-wise
break-up A, B, C, D Categories in Shore Establishment, is as furnished hereunder :

D. THE EXISTING SCHEMES AND THE POLICY ON WOMEN EMPLOYEES IN DCI:

45. COMPLIANCE WITH GOVERNMENT'S POLICY ON WOMEN— PREVENTION OF SEXUAL HARASSMENT
COMMITTEE (POSH):

Basing on the Supreme Court's judgment and keeping in view the Government instructions on sexual harassment of women
at work places, a Complaints Committee/ Internal Committee headed by a woman officer is in place to inquire into the
complaints of sexual harassment at work places. A complaints register is also being maintained. Training/workshop is also
being conducted for the employees for the purpose. The Company has in place a robust Policy on Prevention, Prohibition
and Redressal of Sexual Harassment of Women at Workplace in line with the requirements of the Sexual Harassment of
Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. The weblink of the policy is -https://www.dredge-
india.com/investors/prevention-of-sexual-harassment-posh-policy

DCI is a Life Member of the Forum for Women in Public Sector and one woman representative from DCI has been nominated
to the above forum. Apart from the Trade Unions, the problems, if any relating particularly to women employees are looked
into as and when the same are brought to the notice of the Management.

The company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual
Harassment of woman at workplace (Prevention, Prohibition and Redressal) Act, 2013.

The Complaints Committee/Internal Committee have following members which are nominated by the employer, namely:

Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
with respect to FY 2025-26 is as under:

46 EXISTING BENEFITS AND WELFARE MEASURES
FOR THE WOMEN EMPLOYEES:

a) The women employees of the Company, with less
than two surviving children are entitled for 26 weeks
of Maternity Leave.

b) Special casual leave not exceeding 14 working days
is sanctioned to regular women employees of the
Company to undergo non-puerperal sterilisation.

c) One day special casual leave is allowed to the
regular women employees of the Company who
had ICUD insertions.

d) As per the Apex Court judgement and basing on the
Government instructions, a Complaints Committee
headed by a Woman Officer was constituted to
inquire into the complaints of Sexual Harassment
at work places. A Complaints Register is also
being maintained.

e) Apart from the Trade Unions, the problems, if any,
relating particularly to women employees are
looked into as and when the same are brought to
the notice of the Management.

f) A Recreation Room has been provided exclusively
for the women employees in the Company.

g) Working uniforms are provided to Group 'D'
employees, as per the scales prescribed in the Rules.

h) Provisions of the Maternity Benefit Act 1961 are
implemented in the Company.

47. OTHER BENEFITS:

Paternity leave of 15 days is allowed to a regular
male employee having less than two children,
during confinement of his wife, as per Leave Rules of
the Corporation.

48. WAGE SETTLEMENTS:

A. SHORE ESTABLISHMENT:

i) Pay revision of Executive Employees is
implemented w.e.f. 01.01.2017.

ii) The wage revision of Non-Executive employees
in the Shore Establishment is implemented
w.e.f. 01.01.2017.

B. FLOATING ESTABLISHMENT :

i) New Wage Agreements in respect of Officers
is implemented w.e.f. 01.01.2024.

ii) New Wage Agreements in respect of Floating
Petty Officers is implemented w.e.f. 01.01.2024.

iii) New Wage Agreements in respect of Floating
crew is implemented w.e.f. 01.01.2024.

49. HUMAN RESOURCES DEVELOPMENT:

The Company is making sincere and concerted efforts
for the overall development of Human Resources. During
the year 2025-26, 97 Executives and 464 Non-Executives
were imparted with various training Programs.

50. IMPLEMENTATION OF THE RIGHT TOINFORMATION ACT, 2005:

As per the Directives of the Government of India, your
company implemented the Right to Information Act,
2005 w.e.f. 12.10.2005. All necessary infrastructural
arrangements have been made, including the

appointment of Public Information Officers, Asst. Public
Information Officers and Appellate Authority. Additionally,
procedures have been established for the submission
of periodic reports on the Act's implementation
progress. A register is being maintained for monitoring
the requests from public seeking information and the
replies by the concerned are also being coordinated.
Required periodical reports on the implementation of
RTI/ Status of RTI replies are being furnished to the CIC
from time to time.

51. ACTIVITIES OF PUBLIC GRIEVANCES AND
COMPLAINTS CELL:

A Public Grievance Cell has been functioning in the
Company since 1988 to look into the Grievances/
Complaints received from the Public. The Company
Secretary is the officer in charge for Public Grievances.
As per the Ministry's guidelines, a status report is
being submitted for the information to the Board of
Directors at the Board meetings and a quarterly status
report is forwarded to the Ministry. In line with the
Ministry's direction, a Public Grievance Redressal and
Monitoring System (PGRAMS) software was installed in
the Computer Network in the Company, which works in
a collaborative 'hand-shake' mode between the Ministry
and the Company.

52. WELFARE MEASURES PROVIDED FOR THE
EMPLOYEES AND THEIR FAMILY MEMBERS:

The Company continued various welfare schemes viz.,
Family Pension Scheme, Gratuity Scheme, Personal

Accident Insurance Coverage, Group Savings Linked
Insurance Scheme, Contributory Provident Fund,
Maternity Leave, Paternity Leave, Payment of ex-gratia
to legal heirs/members of the family of deceased
employees, Canteen for project employees, Medical
Attendance, Merit Scholarships for the children of SC/ST
employees, Pension Scheme and DCI Retired Employees
Medical Trust/Scheme, family carriage facility for fleet
personnel etc. Other welfare measures such as Special
Casual Leave for maternity/ paternity are extended to
the employees.

53. ACTIVITIES AND ACHIEVEMENTS OF VIGILANCE
DEPARTMENT DURING THE YEAR 2025-2026

Vigilance Department is playing a proactive role for
continuous simplification and improvements in systems
and procedures and facilitating faster and effective
decision making in transparent manner.

1) The Vigilance Awareness Week (VAW) 2025

The Vigilance Awareness Week 2025 was
observed at the Corporate Headquarters and at
various Regional / Project Offices of Dredging
Corporation of India Ltd. from 27^th October 2025 to
2^nd November 2025, under the auspices of Central
Vigilance Commission (CVC) to spread awareness
against corruption. CVC's theme for the year 2025
was "Vigilance: Our Shared Responsibility" with
emphasis on spreading awareness in fight against
corruption to all sections of Society. In line with
the letter and spirit of the theme and guidelines of
CVC, several activities were organized covering a
wide spectrum of society, with the aim of spreading
awareness and sensitizing the public about ways
and means to fight corrupt practices.

During the VAW-2025, outreach activities were
conducted at schools and colleges like essay
writing, elocution and painting etc. We could
achieve this with the help of support of the print
media and Social media, which gave wide publicity
to our activities.

2) Preventive Vigilance

As a measure of preventive vigilance, 06 Periodic,
09 Surprise and 3 CTE type inspections have been
taken up during the year. The lapses/ irregularities
noticed in this regard have been communicated for
taking remedial/ corrective actions

3) Systemic Improvements undertaken:

During the year, various Systemic improvement
measures were suggested by the Vigilance
Department for implementation.

i) To ensure that suitability / inspection of the
dredgers / crafts offered by the party were
carried out as per tender conditions without
deviating and thereby evaluate the bids.

ii) To verify the documents pertaining to
qualifications and experiences from the issuing
authorities in respect of all future recruitments
at the time of issuing the appointment orders or
at least before declaration of probation period.

iii) HR FS Department shall ensure that all the
P-Files were updated on a time bound
manner and suggested to digitalize the
records immediately.

iv) Expedite in clearing the long pending
probationary declaration cases as well as
promotion cases of floating employees.

4) Implementation of Online Confidential Reports (CRs)
for crew and officers working onboard dredgers for
timely declaration of probationary period.

5) Training Programmes conducted:

As a part of Vigilance Awareness Week campaign,
multiple training programmes were conducted to
the employees on following thematic areas.

a) Investigation and Report

b) Framing of Charge sheets

c) Conducting CTE type Intensive Examinations

d) Training programme on i-GOT topics Ethics,
Conduct Rules, Integrity, Attitudinal change,
Cyber Hygiene, Public Procurement.

There about 73 employees have attended the above
mentioned training programmes.

54. INFORMATION TECHNOLOGY DEPARTMENT -
ACTIVITIES DURING 2025-26

DEVELOPMENT / IMPROVEMENT IN ERP

Automation of invoice (E invoice and e way bill)
Development of project wise Profit and loss report
Balance sheet
Corporate profit and loss
Budget implementation

1. Implementation of Integrated Command and
Control centre at Head Office and Vessels placed
on M/s Railtel and work is under progress.

2. Planned Maintenance System issued to M/s Danaos
management, Greece and work in progress.

55. BUSINESS RESPONSIBILITY AND SUSTAINABILITY
REPORT (BRSR)

The Business Responsibility Report for the year ended
31^st March, 2026 as required under the SEBI regulations is
annexed to the Directors Report. The Website link is
https://dredge-india.com/files/BRSR25.pdf

56. DIRECTORS & KEY MANAGERIAL PERSONNEL:

The changes in composition of the Board during the
Financial Year 2025-2026 are given in detail in Corporate
Governance Report. The Directors recommend
for approval of the Members the appointments/
re-appointment of the Director as proposed in the
Notice to the AGM.

57. COMPLIANCE OF THE SECRETARIAL STANDARDS

Your directors state that proper systems have been
devised to ensure compliance with the applicable laws.
Pursuant to the provisions of Section 118 of the Act, during
FY 2025-26, the Company has generally adhered with
the applicable provisions of the Secretarial Standards
(SS-1 and SS-2) relating to 'Meetings of the Board of
Directors' and 'General Meetings' issued by the ICSI and
approved by the Central Government under Section 118
(10) of the Act.

58. COMPLIANCE WITH MATERNITY BENEFIT ACT,
1961

The Company is compliant with the applicable provisions
of the Maternity Benefit Act, 1961 and has policies, systems
and processes in place to ensure ongoing compliance.

59. FAMILIARIZATION PROGRAM FOR INDEPENDENT
DIRECTORS

Pursuant to the provisions of Regulation 25(7) of the
SEBI Listing Regulations read with Schedule IV of the
Act, the Company has in place a Familiarization Program
for its Independent Directors to acquaint them with the
Company, their roles and responsibilities, the business
model, operational aspects and governance framework
of the Company.

Through this program, the Independent Directors are
provided with relevant information and insights to enable
them to gain a comprehensive understanding of the
Company's business and to contribute effectively to the
Board and its Committees.

Details of the Familiarization Program for Independent
Directors are also disclosed on the Company's website
https://dredqe-india.com/files/familirisationPqm.pdf

60. CREDIT RATING

List of all credit ratings obtained by the entity along with
any revisions thereto during the relevant financial year,
for all debt instruments:

61. INDIA MARITIME WEEK (IMW) 2025

Dredging Corporation of India Limited (DCI) actively
participated in India Maritime Week (IMW) 2025, held from
27^th October 2025 to 31^st October 2025 at the Bombay
Exhibition Centre, Mumbai. The event was organized under
the aegis of the Ministry of Ports, Shipping and Waterways
and served as a premier platform for showcasing India's
maritime capabilities, fostering industry collaboration,
and promoting investment opportunities in the maritime
sector. During the event, DCI achieved a major milestone
by entering into 22 Memoranda of Understanding (MoUs)
with 16 organizations, having a potential business value
of approximately ?17,645 crore. These agreements
were executed with major ports, shipyards, technology
partners, and other maritime stakeholders for dredging
services, fleet modernization, dredger construction and
repair, indigenous manufacturing of dredging equipment,
technical collaboration, and operational support.

The participation reinforced DCI's strategic role in
supporting the Government of India's Maritime Amrit Kaal
Vision 2047 and strengthening the country's maritime
infrastructure through sustainable and efficient dredging
solutions. The MoUs are expected to enhance DCI's
business prospects, operational capabilities, and long¬
term growth in the maritime sector.

During the inauguration of India Maritime Week (IMW)
2025, Prime Minister Narendra Modi announced a ?4,000
crore investment for the modernization of Dredging
Corporation of India Limited (DCIL) under the Maritime
Amrit Kaal Vision. The announcement was aimed at
enhancing DCIL's dredging capacity, operational
efficiency, and global competitiveness through fleet
modernization, acquisition of advanced dredgers,
technological upgradation, and adoption of sustainable
dredging practices.

The modernization programme envisages the
procurement of new dredgers and strengthening of
DCIL's capabilities in maintenance dredging, capital
dredging, and inland waterway development, thereby
supporting India's maritime infrastructure growth and
the vision of becoming a global maritime leader

62 GOLDEN JUBILEE CELEBRATION - 50 YEARS OF
DREDGING EXCELLENCE (1976-2026)

Dredging Corporation of India Limited (DCIL) celebrated
its Golden Jubilee on 29 March 2026, marking 50 years
of dedicated service to India's maritime sector since
its incorporation on 29 March 1976. The celebrations
were held at Visakhapatnam in the presence of
employees, former employees, stakeholders, customers,
and representatives from the Ministry of Ports,
Shipping and Waterways.

On the occasion, Union Minister for Ports, Shipping and
Waterways Shri Sarbananda Sonowal and Minister of State
Shri Shantanu Thakur conveyed their congratulations
and appreciated DCIL's significant contribution
towards strengthening India's port infrastructure, cargo
movement, and blue economy.

Over the last five decades, DCIL has emerged as the
country's premier dredging organization and currently
undertakes nearly 80% of India's maintenance dredging
operations, playing a pivotal role in maintaining navigable
channels and supporting the growth of major ports
across the nation.

As part of the Golden Jubilee celebrations, DCIL unveiled
its long-term growth and modernization roadmap,

targeting enhanced dredging capacity, induction of new
dredgers, diversification into emerging maritime sectors,
and expansion of its global footprint. The Company also
reaffirmed its vision of becoming a globally recognized
leader in dredging services by 2047.

To commemorate the occasion, India Post released a
special "My Stamp" celebrating DCIL's contribution to
India's maritime infrastructure and nation-building.

63. ACKNOWLEDGEMENTS:

The Directors place on record their sincere appreciation
and gratitude to the Hon'ble Union Minister of Ports,
Shipping and Waterways, the Hon'ble Minister of State for
Ports, Shipping and Waterways, the Hon'ble Secretary,
Ministry of Ports, Shipping and Waterways, and other
officials of the Ministry for the valuable help, assistance,
guidance and support extended to the Company from
time to time. The Directors thank all other Ministries for
the help and co-operation extended by them. The Board
is grateful to the Comptroller & Auditor General of India,
the Member, Audit Board and the Statutory Auditors for
their co-operation. The Board also thanks the Bankers
of the Company for their valuable services. The Board
expresses its gratitude to the valued customers for their
continued patronage. The Directors place on record
their appreciation of the services rendered by all the
employees of the Company.

For and on behalf of the Board of Directors

-sd-

Jasmeet Singh Bindra, IRTS