Your Directors are pleased to present the 38^th Annual Report together with the Audited Standalone and Consolidated Financial Statements of the Company for the financial year ended 31^st March, 2026.

2. PERFORMANCE HIGHLIGHTS AND THE STATE OF COMPANY'S AFFAIRS

Your company has achieved a total income of C 1,31,956.64 Lakhs on Standalone Basis and C1,45,378.74 Lakhs on Consolidated Basis during the financial year 2025-26 as compared to C1,29,637.68 Lakhs on Standalone Basis and C 1,43,028.76 Lakhs on consolidated basis in the previous year. The Standalone and Consolidated Profit before Tax (PBT) for the year stood at C22,740.40 Lakhs and C23,249.02 Lakhs as compared to C20,896.70 Lakhs and C21,321.94 Lakhs respectively over the previous year. The Standalone and Consolidated Profit after Tax (PAT) stood at C16,552.83 Lakhs and C16,915.68 Lakhs as compared to C 15,621.27 Lakhs and C 15,859.14 Lakhs over the previous year.

Further, the details of operations are given in the Management Discussion and Analysis Report which forms part of this report.

3. DIVIDEND

During the Financial Year, based on the Company's performance, the Board of Directors have declared dividend of C11/- each per equity share at 550% of the face value of C2/- each, if approved by the Members and would involve a cash outflow of C3,564.11 Lakhs. Pursuant to Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has framed a Dividend Distribution Policy and the same is herewith annexed as 'Annexure I' to this report. The Dividend Distribution Policy is posted on the website of the Company at https:// balajiamines.com/pdfn/1 772536575Dividend%20 Distribution%20Policy.pdf

4. TRANSFER TO RESERVES

The Company proposes to transfer a sum of C1,655.28 Lakhs to the General Reserves. An amount of C14,897.56 Lakhs is proposed to be retained in the statement of profit and loss.

5. SUBSIDIARIES

Balaji Speciality Chemicals Limited (BSCL) is the only Subsidiary of the Company. BSCL is engaged in Manufacturing of Ethylenediamine (EDA), Piperazine (Anhydrous), Aminoethylpiperazine (AEP) and Diethylene triamine (DETA) and other Speciality Chemicals. The new Greenfield Project and Expansion cum diversification of Unit -I of BSCL is under execution at MIDC, Chincholi, Solapur with an investment of C750 Crores as a Mega Project in a phased manner to manufacture some of the high technology products such as Hydrogen Cyanide, Sodium cyanide, EDTA/EDTA 2na etc.,

6. CONSOLIDATED FINANCIAL STATEMENTS

As required pursuant to the provisions of Section 129 of the Companies Act, 2013, and the SEBI (Listing Regulations and Disclosure Requirements) Regulations, 2015, the Consolidated Financial Statements of the Company are prepared in accordance with the Indian Accounting Standards (Ind-AS) issued by the Institute of Chartered Accountants of India on the basis of the Audited Financial Statements of the Company and its Subsidiary.

As per the provisions of Section 136 of the Companies Act, 2013, the Company will also place separate audited accounts of its Subsidiaries on its website. The audited financial statements of the subsidiary are available on the website of the Company at

https://balajia mi nes.com/resu lts.php?ref=1 &Disclosure-under-Regulation-46-of-SEBI--LODR--Regulations--2015

The Statement containing salient features of the financial statements of the subsidiaries in Form AOC-1 is attached as 'Annexure II' to this Annual Report.

7. CREDIT RATING

The Credit Rating of the Company is affirmed during the year as “IND AA/Negative/IND A1 " by India Ratings and Research Private Limited.

8. DETAILS OF COMPANIES WHICH HAVE BECOME OR CEASED TO BE ITS SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES DURING THE FINANCIAL YEAR

During the Financial Year 2025-26, no company ceased to be a subsidiary of the company and your company does not have any associates or joint ventures.

9. DETAILS OF DIRECTORS OR KEY MANAGERIAL PERSONNEL WHO WERE APPOINTED OR HAVE RESIGNED DURING THE FINANCIAL YEAR

The constitution of the Board is in compliance with the provisions of Section 149 of the Companies Act, 2013 and the Listing Regulations.

During the financial year 2025-26, Mr. A. Prathap Reddy, Executive Chairman of the Company, Mr. A. Srinivas Reddy, Whole time Director and CFO of the Company, Mr. D Ram Reddy, Managing Director of the Company and Mr. N Rajeshwar Reddy, Whole time Director of the Company were re-appointed in the 37^th Annual General Meeting of the Company held on 8^th August, 2025.

10. DECLARATION BY INDEPENDENT DIRECTORS

The Company has received declarations of independence from all Independent Directors pursuant to the provisions of Section 149(7) of the Act and Regulation 25(8) of the SEBI Listing Regulations, stating that they meet the criteria of independence as provided in Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations and they are not aware of any circumstance or situation, which exist or may be reasonably anticipated, that could impair or impact their ability to discharge their duties with an objective independent judgment and without any external influence.

The Board is of the opinion that the Independent Directors of the Company possess requisite qualifications, experience and expertise and hold the highest standards of integrity during their tenure. In terms of Section 150 read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended, the Independent Directors of the Company have included their names in the data bank of Independent Directors maintained with the Indian Institute of Corporate Affairs.

11. MEETINGS

During the year, four meetings of the Board of Directors were held, as more particularly disclosed in the attached Report on Corporate Governance. The intervening gap between any two meetings was within the prescribed period.

The number and dates of meetings held by the Board and its Committees, attendance of Directors and details of remuneration paid to them is given separately in the Report on Corporate Governance in terms of Section 134(3) (b) of the Companies Act, 2013.

None of the Directors are disqualified under Section 164(2) of the Act. Certificate on non-disqualification, as required under Regulation 34 of SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015 is annexed to the Report on Corporate Governance.

Committees of the Board

Details of committees of the Board, their composition, terms of reference and other details are provided in the Report on Corporate Governance, which forms a part of this Annual Report.

Meetings of Independent Directors

As stipulated by the Code of Independent Directors under the Act and the Listing Regulations, one meeting of Independent Directors was held during the year. The Independent Directors reviewed the performance of the Chairman, NonIndependent Directors and the Board as a whole.

12. BOARD EVALUATION

Pursuant to the provisions of the Companies Act, 2013 and Listing Regulations, the Board has carried out the annual performance evaluation of its own performance by the Directors individually (including Independent Directors) as well as the evaluation of the working of its Audit, Nomination and Remuneration and other Committees.

A structured questionnaire was prepared after taking into consideration inputs received from the Directors, covering various aspects of the Board's functioning such as adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance.

A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgments, safeguarding the interest of the Company.

The performance evaluation of the Independent Directors

was carried out by the entire Board. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors. The Directors expressed their satisfaction with the evaluation process.

Familiarisation program for Independent Directors

The Company familiarises its Independent Directors pursuant to the requirements of the Listing Regulations with their roles, rights, responsibilities in the Company. The details of the familiarisation programme imparted to Independent Directors of the Company during Financial Year 2025-26 are available on the website of the Company at https://balajiamines.com/ pdfn/1779457484Familiarisation%20Programme%20of%20 Indpendent%20Directors.pdf .

It is the general practice of the Company to notify the changes in all the applicable laws from time to time in Board Meetings conducted.

13. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Companies Act, 2013, Board of Directors confirm that, to the best of their knowledge and belief and according to the information and explanation available to them that -

(a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

(b) such accounting policies as mentioned in the notes to the financial statements have been selected and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year 2025-26 and of 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 Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the annual accounts for the year 2025-26 have been prepared on a going concern basis;

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

(f) the proper systems have been devised to ensure compliance with the provisions of all applicable laws and were adequate and operating effectively

mentioned under various heads of the departments which are in turn reporting to the Whole-time Directors.

14. RESEARCH & DEVELOPMENT

Your Company has been carrying out continuous Research and Development activities in the following areas:

The Company has initiated various process development activities in the following plants which have bearing on the cost reduction, product quality improvements

i. Morpholine

ii. DMAHCL -

iii. Propylene Glycol Pharma grade

iv. MIPA and DIPA

v. PVPK 30

vi. NMP - Electronic Grade

vii. DMC - Electronic Grade

viii. Ethanol Purification

ix. TEA - Electronic Grade

x. DMAC and DMU ultrapure grades

xi. DMF - ultrapure Grade

15. EXPANSION/DIVERSIFICATION

1. Di Methyl Ether : The plant is expected to be commissioned during the First quarter of Financial Year 2026-27.

2. N-Methyl Morpholine(NMM) : The NMM plant with a capacity of 15 MT/Day is under execution at Unit IV. The plant is likely to be commissioned during the Financial Year 2026-27.

3. ACETONITRILE: The company has taken up a project for upgradation of technology and increasing the capacity of existing ACN plant to a capacity of 60 MT/Day at Unit-Mi MIDC, Chincholi. The execution of the project is in progress and the plant is expected to be commissioned during the Second quarter of the FY 2026-27.

16. CHANGE IN NATURE OF BUSINESS

There is no change in the nature of business during the year.

17. MATERIAL CHANGES AND COMMITMENTS

There have been no material changes and commitments, if any affecting the financial position of your Company which have occurred after the closure of the Financial Year 2025-26 till the date of this Report.

18. REMUNERATION POLICY

The Board has, on the recommendations of the Nomination and Remuneration Committee, framed a policy for selection

and appointment of Directors and Senior Management personnel and fix their remuneration. The Remuneration Policy is placed on the website of the Company at the link: h tt ps ://bal a jia mines.com/pdfn/1 7727059201 5% 20 Nomination,%20Remuneration%20and%20Evaluation%20 Policy.pdf

19. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013, are given in the notes to the Financial Statements.

20. ANNUAL RETURN

Pursuant to the provisions of Section 92(3) of the Act, the

Annual Return of the Company as on 31^st March, 2026 is

available on the Company's website at

https://balajia mi nes.com/resu lts.php?ref=1 &Disclosure-

under-Regulation-46-of-SEBI--LODR--Regulations--2015

21. PARTICULARS OF EMPLOYEES

In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in 'Annexure III' to this report.

Details as required under Section 197(12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, with respect to information of employees of the Company will be provided upon request by a Member. In terms of the provisions of Section 136(1) of the Act, the Annual Report is being sent to all the Members of the Company whose email address(es) are registered with the Company/ Depository Participants via electronic mode, excluding the aforesaid Annexure. If any Member is interested in obtaining a copy thereof, the Member may write to the Company Secretary in this regard or send an email to cs@balajiamines.com .

22. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

The Company has in place proper and adequate internal control systems commensurate with the nature of its business, size and complexity of its operations. Internal control systems comprising policies and procedures designed and implemented to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedure, applicable laws

and regulations, and that all assets and resources acquired are used optimally.

23. STATUTORY AUDITORS

M/s. M. Anandam & Co., Chartered Accountants (Firm Registration No. 000125S), were appointed as Statutory Auditors of the Company for a period of 5 years from the conclusion of 34^th Annual General Meeting of the Company till the conclusion of 39^th Annual General Meeting of the Company.

The Independent Auditors report given by M/s. M. Anandam & Co., Chartered Accountants, Statutory Auditors of the Company on Standalone and Consolidated Financial Statements of the Company does not contain any qualification, reservation or adverse remark.

24. REPORTING OF FRAUDS

During the year under review, there was no instance of fraud, which required the Statutory Auditors to report to the Audit Committee and /or Board under Section 143(12) of the Companies Act, 2013 and the rules made thereunder.

25. INTERNAL AUDITORS

The Board of Directors based on the recommendations of the Audit Committee have appointed M/s. Pandhare Bhutada & Co., Chartered Accountants as Internal Auditors of the Company for Manufacturing Division and M/s. Aherkar & Co., Chartered Accountants as Internal Auditors of the Company for the Hotel Division. The Internal Auditors are submitting their reports on a monthly basis to the management.

26. COST AUDITORS

In accordance with Section 148(3) read with the Companies (Cost Records and Audit) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013, the Audit Committee has recommended and the Board of Directors had appointed Mr. Narayan D. Dontul, Practicing Cost Accountants, Solapur, (Firm Registration No. 100224) as Cost Auditors of the Company, to carry out the cost audit of the products manufactured by the Company during the financial year 2025-26 on a remuneration of C75,000/- (Rupees Seventy Five Thousand only) (plus GST and reimbursement of out of pocket expenses). The remuneration payable to the cost auditor is required to be placed before the Members in a general meeting for their approval. Accordingly, a resolution seeking Members' approval for the remuneration payable to Mr. Narayan D. Dontul, Cost Accountants, is included at Item No. 4 of the Notice convening the 38^th Annual General Meeting.

27. SECRETARIAL AUDITORS & SECRETARIAL AUDIT REPORT

During the year under the review, Members approved the appointment of M/s. P. S. Rao & Associates, Practising Company Secretaries as the Secretarial Auditors of the Company, to hold office for a term of 5 (Five) consecutive years up to the conclusion of the 42^nd AGM of the Company to be held in the Year 2030.

The Secretarial Audit Report, pursuant to Section 204(1) of the Companies Act, 2013, for the financial year ended 31^st March, 2026 is given in 'Annexure IV' attached hereto and forms part of this Report.

The Secretarial Audit Report does not contain any qualification, reservation or adverse remark on the Company.

The Secretarial Audit Report of Unlisted Material Subsidiary, Balaji Speciality Chemicals Limited issued by M/s. P. S. Rao & Associates, Practicing Company Secretaries is forming part of the Report on Corporate Governance.

As per Regulation 24A of the Listing Regulations, the Annual Secretarial Compliance Report issued by M/s. P. S. Rao & Associates, Practicing Company Secretaries pursuant to SEBI circular dated February 8, 2019 and is forming part of the Report on Corporate Governance.

28. VIGIL MECHANISM / WHISTLE BLOWER POLICY

The Company has formulated a Whistle Blower Policy in terms of Section 177 of the Companies Act, 2013 and as per Regulation 22 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI (Prohibition of Insider Trading) Regulations, 2015 for the employees to report their grievances / concerns about instances of unethical behavior, actual or suspected fraud or violation of Company's Code of Conduct by means of Protected Disclosure to the Authorised Officer or the Chairman of the Audit Committee.

The vigil mechanism / whistle blower policy may be accessed on the Company's website at the link: https://balajiamines. com/pdfn/1772520512Whistle%20Blower%20Policy.pdf

29. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134 (3) (m) of the Companies Act, 2013, read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith as 'Annexure V.

30. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTY

All related party transactions that were entered into during the financial year were at an arm's length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. All the related party transactions are approved by the Audit Committee and Board of Directors.

During the year, all Related Party Transactions were placed before the Audit Committee and also to the Board for approval. Prior omnibus approval of the Audit Committee was obtained for the transactions which were of a foreseen and repetitive nature. A statement on Related Party Transactions specifying the details of the transactions pursuant to each omnibus approval granted, is placed on a quarterly basis for review by the Audit Committee.

Pursuant to Regulation 23(9) of SEBI Listing Regulations, the disclosures of Related Party Transactions are submitted to the Stock Exchanges on a half-yearly basis. The Policy on Related Party Transactions as approved by the Board of Directors of the Company is uploaded on the website of the Company and the same can be accessed at the link: https://balajiamines.com/

pdfn/1781273752PolicyonRelatedPartyTransactions.pdf

The particulars of contracts or arrangements with related parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013, in Form AOC-2 and disclosures under Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, is annexed as 'Annexure VI' to this report.

31. RISK MANAGEMENT

The Company has constituted a Risk Management Committee and formulated a policy on Risk Management in accordance with the Companies Act, 2013 and Regulation 21 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The details of the Committee and its terms of reference are set out in the Report on Corporate Governance forming part of the Director's Report. The Risk Management Policy of the Company is posted on the website of the Company and the web link:

https://balajiamines.com/pdfn/1 7727056005%20 RiskManagementPolicy.pdf

32. CORPORATE SOCIAL RESPONSIBILITY

The Board in compliance with the provisions of Section 135(1)

or the Companies Act, 2013, and rules made thereunder has constituted Corporate Social Responsibility (CSR) Committee. The details of the Committee and its terms of reference are set out in the Report on Corporate Governance forming part of the Director's Report. The CSR policy has been placed on the Website of the Company and can be accessed through the link: https://balajiamines.com/pdfn/17727057109%20 CorporateSocialReponsibilityPolicy.pdf and a brief outline of the CSR Policy and the CSR initiatives undertaken by the Company during the year as per Annexure prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014 have been appended as 'Annexure VII' to this Report.

33. FIXED DEPOSITS

Your Company has not accepted any fixed deposits from the public within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 and as such no principal or interest was outstanding as on the date of the Balance Sheet.

34. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS

There are no significant and material orders passed by the Regulators or Courts or Tribunals that would impact the going concern status of the Company and its future operations.

35. MANAGEMENT DISCUSSION & ANALYSIS

Pursuant to Regulation 34(2) read with the Schedule V of the Listing Regulations, the Management Discussion and Analysis Report for the financial year is shown in a separate section forming part of the Annual Report.

36. DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER INSOLVENCY AND BANKRUPTCY CODE, 2016

During the year under review, the Company has not filed any application or no proceeding is pending against the Company under the Insolvency and Bankruptcy Code, 2016.

37. 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, the Company has not made any one-time settlement while taking any loans from the Banks or Financial Institutions.

38. COMPLIANCE WITH SECRETARIAL STANDARDS

During the year under review, your Company has complied

with the respective Secretarial Standards issued by the Institute of Company Secretaries of India on Meeting on Board of Directors (SS-1), General Meetings (SS-2) and Dividend (SS-3).

39. EMPLOYEE STOCK OPTIONS

The Company is yet to implement the ESOP Scheme.

40. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT WITH ENVIRONMENT, SOCIAL & GOVERNANCE

The Company forms part of the top 1000 listed entities on BSE and NSE as on 31^st March, 2026. Accordingly, pursuant to Regulation 34(2)(f) of Listing Regulations, Business Responsibility and Sustainability Report (BRSR) for the financial year ended 31^st March, 2026 is provided in a separate section which forms part of the Annual Report.

41. CORPORATE GOVERNANCE

Your Company practices a culture that is built on core values and ethical good governance practices and is committed to transparency in all its operations and activities. A Report on Corporate Governance along with a Certificate from M/s. P. S. Rao & Associates, Practising Company Secretaries regarding compliance with the conditions of Corporate Governance as stipulated in Regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of Regulation 46 and paragraphs C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of the Annual Report.

42. HUMAN RESOURCES

Your Company considers its Human Resource as the major strength to achieve its objectives. Keeping this in view, your Company takes all the care to attract, train and retain well qualified and deserving employees. The employees are sufficiently empowered and enabled to work in an environment that inspires them to achieve higher levels of