Coastal Corporation Ltd

" Together with our management, staff, bankers, suppliers and other stake holders we will try to keep building and growing the company value within the scope of its planned business activities."

Dear Valued Shareholders,

It is always a pleasure to connect with you!Last year, I spoke to you about our ensured

continuity of the company operations while re-calibrating our business operations to make the best of those challenging pandemic times. I am pleased to share that your company has done reasonably well even in a volatile global environment with low economic growths and signs of recession in various countries during the FY 2022-23. As you are aware the global environment is going through considerable changes with the geopolitical factors such as the continuing conflict between Russia and Ukraine, rising inflation, low GDP and volatile commodity prices have caused slowing down of global economic growth and created stress in the overall economic environment. Despite the above unfavourable economic conditions in the international markets during FY 2022-23 we were able to export to the countries USA, Europe, Canada, UAE, Saudi Arabia, Hong Kong, Korea, Japan & Russia During the FY 2022-23, the Indian sea food exports have increased in quantity terms by 26.73% and in rupee terms by 4.31% when compared to 2021-22. India had exported 13,69,264 MT of seafood worth Rs 57,586.48 crore (US$ 7.759 Billion) and during FY 2022-23 about 17,35,286 MT of sea food exported worth US$ 8.09 Billion and USA being the largest importer of Indian seafood followed by China, EU, South East

Asia, Japan and Middle East with the Frozen shrimp retains the top position as the major export of seafood product.

During the year your company had consolidated its business operations by optimizing the plants and new initiatives taken up in line with the business planning for the next 5 years. Here I am giving you the status and progress of each new initiative.

1. To optimise the cost of electricity and also to reduce the CO2 and greenhouse gases to protect environment your company had set up a Solar Power Plant with a capacity of 3.6MW which was installed and commissioned and using for captive consumption for CCL plants.

2. To enhance the productivity your company is under the process of implementation of the state of the art ERP System from a reputed International vendor Tata Consultancy Services Limited by using TCS ION software. All the human resources of the company are being trained to use the ERP IT system.

3 The new factory at Kakinada is operational and having a Plant with a freezer capacity of 14MTPD with a Quick Frozen of 32 MTPD and Cooker of 12 MTPD for making various range of Shrimp products like, Headless Shell On (HL), Peeled Deveined Tail On (PDTO), Peeled Deveined Tail Off (PD), Pulled Vein Tail On (PVTO), Peeled

4. Un-Deveined (PUD), Butter_y and various Cooked Shrimp value added products The CCL subsidiary Coastal Biotech Private Limited located at Parlakimidi, Odissa which is going to produce the Ethanol is having a Plant Capacity of 198 KLPD, and the construction is as per the schedule and is expected to be operational by end of next year as per the business plan if other factors remains same as per the prevailing conditions.

5. Similarly to expand the shrimp production as per the coming years demand the subsidiary Continental Fisheries India Limited at Odissa is going to be the new Shrimp Processing Facility with a plant capacity of 12 MTPD

I'm happy to report that with the guidance of the Board of Directors and support of the management and the dedication of our employees, customers, suppliers and all other stakeholders continued trust in us have helped us navigate to a reasonable position during FY 2022-23 along with the establishment of Plant III at Kakinada which augmented Company's value-added supply.

For the FY 2022-23, year ended on standalone basis the Revenue from company operations was Rs.347.77 Crores, EBITDA of Rs 22.374 Crores, PAT of Rs 8.95 Crores and a Net worth of Rs Rs 264.91 Cr. On a consolidated basis the Revenue from Operations was Rs.364.26 Crores, EBITDA of Rs 19.84 Crores, PAT of Rs 6.69 Crores and a Net worth of Rs 244.71 Crores. The decline in income and profits for the financial year FY2022-23 when compared to the earlier year FY 2021-22 was largely on account of un-favorable external environment factors such as rising input costs, increase in freight charges, low market demand for sales and the non-availability of the containers which have adversely dented the financials and the margins.

However the Board and the Management had taken note and now in the FY2023-24 with the improvement and normalisation in the International and Indian market conditions and with the commitment by the Promoters by infusing equity to the tune of Rs 19.49 Crores. With these positive inputs the Board and management are optimistic to enhance the company operations by value added products, optimising the costs and with business development by exploring the other international markets for enhancing the volume of sales which gives me the confidence