Coastal Corporation Ltd

Dear Shareholders,

As Chairman of the Board of Directors of Coastal Corporation Limited, it is both a privilege and a responsibility to address our esteemed stakeholders. Your ongoing support and commitment are pivotal to our collective success, and I am honoured to lead our organization through these transformative times.

As you are aware India boasts a rich coastline and vast inland water resources, making it a natural leader in the seafood industry and compliments specifically the blue economy and in general the significant contributions to the Indian economy with few highlights given below:

• India ranks third globally in fish production (combining marine and inland sources).

• It's the second largest producer of aquaculture products.

• The industry employs over 28 million people, contributing significantly to livelihoods.

The seafood export industry has witnessed significant developments over the past year, characterized by both challenges and opportunities. The above highlights have made India as a major seafood exporter mainly to US and China which are the key markets, with frozen shrimp being the leading product. The recent figures show record exports exceeding $8 billions and earning the Foreign Exchange Earnings in boosting the Indian economy and contributing to the Indian GDP Contribution. The Seafood contributes around 1% of India's GDP and over 5% of the agricultural GDP.

It was observed the Global demand for high-quality seafood remains robust, driven by evolving consumer preferences towards healthier diets and sustainable food choices. This trend has been further emphasised by increased awareness of the nutritional benefits associated with seafood consumption. Exporters also faced challenges with ongoing geopolitical tensions, including the Russia-Ukraine and other conflicts with difficulty in accessing Red Sea Route for passage and global economic uncertainties. Even though the India's seafood exports volume, reached an all-time high, value declined by 8.8% compared to the previous year Despite these your company achieved a significant milestone during FY 2023-24, in terms of revenue, but due to increase in freight rates and increase in the cost of raw materials the profits have declined from the previous year by capitalising on the India's seafood exports in volume and growth during FY 2023-24.

For the year ended FY 2023-24 your company successfully exported 6147.6 MT of seafood, contributing to Standalone revenue of Rs 398.31 Crores, PAT of Rs. 8.17 Crores and on Consolidated basis a revenue of Rs 410.39 Crores and a PAT of Rs 4.52 Crores when compared to FY 2022-23 consolidated revenue of Rs 336.61 Crores and a PAT of Rs 6.70 Crores which suggests that industry-wide headwinds, due to rising input costs and fluctuating global demand, have impacted our profitability. Your company exports experienced a boom year, with frozen shrimp leading the surge. The US and China remained the top destinations, with the US holding the position of the biggest buyer. Your company strategically capitalized on these well-established markets while simultaneously exploring new opportunities presented by the EFTA free trade agreement. Recognizing the potential of the European market, our subsidiary, Continental Fisheries India Limited, is strategically positioned to tap into this new and exciting frontier.

Your company with its good operational excellence continued to optimize its business operations for high productivity and sustainability. The 3.6 MW solar power plant is fully operational, reducing our environmental GHG footprint and minimising the electricity costs. The state-of-the-art ERP system is operational and implemented in Kakinada Plant with reputed IT Solution vendor TCS Ltd, in streamlining various business operations and enhancing overall productivity with all the software modules in the ERP operating smoothly including the implementation of our HR payroll system and also currently running both Tally and our ERP system concurrently for accounting purposes for the time being until stabilisation of the system.

Your company as a part of its business planning for expansion and growth had operationalised and commissioned the new value-added shrimp processing facility in Kakinada which significantly expanded our capacity. We are further solidifying our future growth through strategic investments in our subsidiaries like Coastal Biotech Private Limited, where the plant and machinery erection for the ethanol production plant is well underway and nearing project completion. Additionally, construction work for Continental Fisheries India Limited's new shrimp processing facility is in work in progress at both Deras, Odisha and D Polavaram. These exciting new initiatives and developments position Coastal Corporation Ltd for continued success in the years to come by the following strategic business planning

• Value-added products and R&D: Focusing on higher- margin value-added shrimp products.

• Enhanced Production Capacity

• Cost optimization: Continuously optimizing costs across the supply chain.

• Business development: Exploring new international markets to increase sales volume.

• Diversified Biofuel Ethanol plant

With the above developments and positive outlook backed by strong operational and financial fundamentals, combined with our planned initiatives and growth drivers, your company is well-positioned for continued growth.

I am grateful for the continued support of the Board of Directors, management team, staff, and all our stakeholders. Together, we will build upon the achievements of FY 2023-24 and propel the company to even greater heights in the coming years.

" With the above developments and positive outlook backed by strong operational and financial fundamentals, combined with our planned initiatives and growth drivers, your company is well-positioned for continued growth."