The directors submit the 33rd Annual Report of Krebs Biochemicals & Industries Limited (the 'Company') along with the audited
financial statements for the financial year ended 31st March 2025.

1. Financial Summary

2. Financial Performance and Operations

During the financial year under review, the Company has
reported total income of Rs. 4402.08 Lakhs as against
total income of Rs. 5087.28 Lakhs in the previous financial
year. During the year under report, operations of the
Company have resulted in a loss of Rs. 2693.93 Lakhs
as against loss of Rs. 1972.84 Lakhs of the previous
financial year. Detailed Performance of the Company is
given in the Management Discussion and Analysis Report
forming part of this Annual Report.

The manufacturing operations at the Company's Vizag
manufacturing unit remain closed since 9th February 2025
pursuant to order issued by Andhra Pradesh Pollution
Control Board.

The Company taking all the possible efforts to revoke the
closure order issued by Pollution Control Board and restart
the manufacturing operations at this manufacturing unit.
Closure of the manufacturing operations at this
manufacturing unit materially impacted the Company's
business.

3. Change in nature of business

During the year under review, there was no change in the
nature of business of the Company.

4. Dividend

In view of losses incurred during the year, no dividend is
proposed to be declared for the financial year 2024-25.

5. Material changes and commitments affecting the
financial position of the Company

No material changes or commitments affecting the
financial position of the Company have occurred between

the end of the financial year to which financial statement
in this report relate and date of this report.

6. Share Capital

There is no change in the share capital of the Company
during the financial year under report.

7. Investor Education and Protection Fund

No unclaimed dividend and/or shares were transferred or
transferable to the Investor Education and Protection Fund
during the year under review.

8. Statutory Auditors, Audit Report and Aud ited Accounts

At the 32nd Annual General Meeting (AGM) of the
Company held on 27th September 2024, the Members
approved re-appointment of M/s. Bhavani & Co, Chartered
Accountants (Firm Registration No. 012139S) as the
Statutory Auditors of the Company to hold office for a
period of three years from the conclusion of the 32nd AGM
till the conclusion of 35th Annual General Meeting to be
held in the year 2027. Based on the legal opinion and as
pointed out by the Secretarial Auditors, it is now proposed
to extend the term of re-appointment of M/s. Bhavani &
Co., Chartered Accountants as Statutory Auditors for a
period of 5 years ( instead of 3 years) from the conclusion
of the 32nd AGM held on 27th September 2024 and till
the conclusion of the 37th AGM to be held in the year
2029. The necessary approval of the shareholders for
this is being taken at the ensuing Annual General Meeting.
The Auditors report read with notes to the accounts
refereed to therein are self explanatory.

Explanation or Comments on Qualification,
Reservation or Adverse Remark or Disclaimer made
by the Auditors

9. Internal Auditors

The Board of Directors based on the recommendation of
Audit Committee have re-appointed M/s. Suryanarayana
& Suresh, Chartered Accountants, Hyderabad, as Internal
Auditors of the Company for the Financial Year 2025-26
at their meeting held on 20th May 2025.

The internal auditors have submitted their reports at
quarterly intervals to the Audit Committee and the Board
during the financial year ended 31st March 2025.

10. Directors and Key Managerial Personnel

During the year, the Non-Executive Directors of the
Company had no pecuniary relationship or transactions
with the Company, other than sitting fees and
reimbursement of expenses incurred by them for the
purpose of attending meetings of the Board and
Committees.

The second term of appointment of Mr. GVL Prasad, Mr.
Raj Kamal Prasad Verma, Mrs. Malti Tangirala and Mr.
Satish Khivsara as Independent Directors of the Company
were completed on 31st December 2024, 12th February
2025, 11th March 2025 and 31st March 2025, respectively.
The Board of Directors at their Meeting held on 4th
February 2025 appointed Mr. P M Kathariya, Ms. Dipti
Shah, Mr. Satya Prakash Chigurupati and Mr. Sumanth

Karlapudi as Independent Directors of the Company for
a period of five consecutive years w.e.f. 4th February 2025
and shareholders approved their appointment through
postal ballot process on 28th May 2025.

Key Managerial Personnel

Pursuant to the provisions of Section 203 of the
Companies Act, 2013, the Key Managerial Personnel of
the Company as on the date of this report are:

Mr. Jitendra Shah - Managing Director& CEO- Upto 7th
August 2025

Mr. Manish Kumar Jain - Managing Director & CEO -

w.e.f. 7th August 2025

Mr. Ritesh Jain - Chief Financial Officer

Mr. Rakesh R Kalbate - Company Secretary & Compliance

Officer

Appointment/ Resignation of KMPs

a) Mr. Keyur Doshi resigned from the post of Company
Secretary & Compliance Office of the Company w.e.f.
15th April 2024.

b) Mr. Rakesh R Kalbate appointed as a Company
Secretary & Compliance Officer of the Company
w.e.f. 21st May 2024.

c) Mr. Jitendra Shah resigned as Managing Director &
CEO of the Company w.e.f. close of business hours
on 7th August 2025.

d) Mr. Manish Kumar Jain appointed as a Managing
Director & CEO of the Company w.e.f. 7th August
2025.

Retirement by Rotation

Mr. Avinash Ravi and Mr. Pabitrakumar Bhattacharyya,
retires by rotation as Directors at the ensuing Annual
General Meeting and they have offered themselves for
re-appointment.

11. Declaration of Independence

The Company has received the declarations under
section149(6) of the Companies Act, 2013, from the
Independent Directors that each of them meets the criteria
of independence and there has been no change in the
circumstances which may affect their status as
Independent Directors during the year. They have also
declared that they are not debarred from the holding the
office of director by virtue of any SEBI order or order by
any other competent authority.

All the Independent Directors have registered themselves
under Independent Directors data bank maintained by the
Indian Institute of Corporate Affairs (IICA).

12. Board Meetings

During the financial year 2024-25, Four (4) meetings of
the Board were held. Details of the meetings of the Board
and attendance of the Directors have been provided in
the corporate governance report which forms part of this
report.

13. Corporate Social Responsibility

The provisions of Section 135 of the Companies Act, 2013
pertaining to Corporate Social Responsibility (CSR) is not
applicable to the Company.

14. Quality Initiatives

The Company is committed to meet the customers Quality
requirements and satisfaction by maintaining high degree
of assurance in Quality, Safety, efficacy of the products
manufactured. The Company maintains mutual and
beneficial relationship with the Suppliers, Vendors and
Customers.

The Company provide continual training to all the
employees working in the plants for upgrading their
knowledge of CGMP practices. Your Company
continuously focus on developing new products with
innovative knowledge and robust practices meeting the
Regulatory requirements.

The Company is committed to meet the regulatory
standards set by global regulators and Company's Unit-II
Vizag site has been accredited and certified by EDQM,
Europe. Many customers have audited Unit-I Nellore plant
and have approved the plant as qualified Vendor.
Company is totally focusing to be as an integrated
Company emerging in the Pharma market by improving
and implementing best-in class methodologies to meet
the customer requirements with zero complaints and by
implementing the ALCOA Practices in both the plants.

15. Policy on directors' appointment and remuneration
and other details

The Nomination and Remuneration Committee has laid
down the criteria for Directors' appointment and
remuneration including criteria for determining
qualifications, positive attributes and independence of a
Director. The following attributes/criteria for selection have
been laid by the Board on the recommendation of the
Committee:

• The candidate should posses the positive attributes such
as leadership, entrepreneurship, industrialist, business
advisor or such other attributes which in the opinion of
the Committee the candidate possess and are in the
interest of the Company;

• The candidate should be free from any disqualifications
as provided under sections 164 and 167 of the Companies
Act, 2013;

• The candidate should meet the conditions of being
independent as stipulated under the Companies Act, 2013
and SEBI (LODR) Regulations, 2015 in case of
appointment as an independent director; and

• The candidate should posses appropriate educational
qualification, skills, experience and knowledge in one or
more fields of finance, law, management, sales, marketing,
administration, research, corporate governance, technical
operations, infrastructure, medical, social service,
professional teaching or such other areas or disciplines
which are relevant for the Company's business.

16. Board Evaluation

The Nomination and Remuneration Committee lays down
the criteria for performance evaluation of Independent
Directors, Board of Directors and Committees of the Board.
The criteria for performance evaluation is based on the
parameters like attendance and participation at the
meetings of the Board and Committees thereof,

contribution to strategic decision making, review of
financial statements and business performance.

The Board has carried out evaluation of its own
performance as well as that of the Committees of the
Board and all the Directors.

17. Remuneration Policy

The objective and broad framework of the Company's
Remuneration Policy is to consider and determine the
remuneration, based on the fundamental principles of
payment for performance, potential and growth. The
Remuneration Policy reflects on certain guiding principles
of the Company such as aligning remuneration with the
longer term interests of the Company and its shareholders,
promoting a culture of meritocracy and creating a linkage
to corporate and individual performance and emphasising
on line expertise and market competitiveness so as to
attract the talent. The Nomination and Remuneration
Committee recommends the remuneration of Directors
and Key and Senior Managerial Personnel, which is
approved by the Board of Directors, subject to the approval
of shareholders, where necessary. The level and
composition of remuneration shall be reasonable and
sufficient to attract, retain and motivate the directors, key
managerial personnel and other employees of the quality
required to run the Company successfully. The relationship
of remuneration to performance should be clear and meet
appropriate performance benchmarks. The remuneration
to directors, key managerial personnel and senior
management personnel should also involve a balance
between fixed and incentive pay reflecting short and long
term performance objectives appropriate to the working
of the Company and its goals. The Remuneration Policy
is placed on the Company's website at
https://www.krebsbiochem.com/krebs.php?id=41&title=Policies-and-Corporate-Documents

Information about elements of remuneration package of
individual directors is provided in the Annual Return as
provided under Section 92(3) of the Companies Act, 2013
which is placed on the website of the Company.

18. Familiarisation program for Independent Directors

The Company has conducted familiarisation programs for
the Independent Directors as required under the
provisions of Companies Act, 2013, the same is uploaded
on the Company's website at www.krebsbiochem.com.

19. Internal Financial Control Systems and their adequacy

The details in respect of internal financial controls and
their adequacy are included in the Management
Discussion and Analysis Report which forms part of this
report.

20. Audit Committee

Your Company has a duly constituted Audit Committee
and the Board has accepted all the recommendations of
Audit Committee during the year under review. The
composition of Audit Committee as on date of signing this
report are:

a) Mr. P M Kathariya - Chairman

b) Ms. Dipti Shah - Member

c) Mr. Satya Prakash Chigurupati - Member

d) Mr. Sumanth Karlapudi - Member

e) Mr. Manish Kumar Jain - Member w.e.f. 08.08.2025

f) Mr. Jitendra Shah - Member upto 07.08.2025

The details pertaining to meeting, role and responsibilities
of Audit Committee are provided in the Corporate
Governance Report, which forms part of this report.

21. Nomination and Remuneration Committee

Your Company has in place a duly constituted Nomination
and Remuneration Committee which has following
members as on date of signing of this report:

a) Mr. Satya Prakash Chigurupati - Chairman

b) Ms. Dipti Shah - Member

c) Mr. P M Kathariya - Member

d) Mr. Sumanth Karlapudi - Member

Details pertaining to meetings, role and responsibilities
of Nomination and Remuneration Committee are provided
in the Corporate Governance Report which forms part of
this report.

22. Stakeholders Relationship Committee

Your Company has constituted a Stakeholders
Relationship Committee as required under the provisions
of SEBI Listing Regulations and the Companies Act, 2013.
Members of the committee as on signing date of this report
are:

a) Mr. Sumanth Karlapudi - Chairman

b) Ms. Dipti Shah - Member

c) Mr. Satya Prakash Chigurupati - Member

d) Mr. P M Kathariya - Member

e) Mr. Manish Kumar Jain - Member w.e.f. 08.08.2025

f) Mr. Jitendra Shah - Member upto 07.08.2025

Details pertaining to meetings, role and responsibilities
of Stakeholders Relationship Committee are provided in
the Corporate Governance Report which forms part of
this report.

23. Corporate Governance

As per the requirements of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, the
Company has complied with the requirements of
Corporate Governance in all material aspects.

A report on Corporate Governance together with a
certificate of its compliance from the Statutory Auditors,
forms part of this report.

24. Loans and Investments

During the year under review, the Company has not given
any loans and not made any investments under the
provisions of Section 186 of the Companies Act, 2013.

25. Particulars of Employees

Pursuant to the provisions of Section 197 of the
Companies Act 2013 read with Rule 5 of the Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014, no employee of the Company is
drawing salary of more than Rs. 1.02 Crores (Rupees
One Crore Two Lakhs) per annum or Rs. 8.5 lakhs
(Rupees Eight Lakhs Fifty Thousand) per month, as the
case may be, for the financial year ended 31st March
2025.

The statement containing particulars of employees as
required under Section 197(12) of the Act read with Rule
5(2) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, is provided in a
separate Annexure-I forming part of this report. Further,
the report and the accounts are being sent to the members
excluding the aforesaid annexure. In terms of Section 136
of the Act, the said annexure is open for inspection at the
Registered Office of the Company. Any shareholder
interested in obtaining a copy of the same may write to
the Company Secretary.

26. Cost Audit

Pursuant to the provisions of section 148 of the
Companies Act, 2013, the cost audit of cost records
became applicable to the Company for financial year
2024-25. M/s. Bojanapalli & Associates, Cost Accountant
(Firm Registration No. 100849) were appointed as Cost
Auditors to conduct audit of cost records of the Company
for the financial year 2024-25.

The Cost Audit Report for financial year 2024-25 will be
filed on or before the due date.

27. Secretarial Audit

Pursuant to the provisions of Section 204 of the
Companies Act, 2013 and the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014
as amended from time to time, the Company has
appointed M/s DSMR and Associates, Practicing
Company Secretaries, as Secretarial Auditors to undertake
the secretarial audit of the Company. The Secretarial Audit
Report is annexed herewith as Annexure- II to the Board's
Report.

Qualifications in Secretarial Audit Report:

28. Annual Secretarial Compliance Report

The Company has undertaken an audit for the financial
year 2024-25 for all applicable compliances as per
Securities and Exchange Board of India Regulations and
Circulars/Guidelines issued thereunder. The Annual
Secretarial Compliance Report issued by M/s. DSMR &
Associates, Practicing Company Secretaries, Hyderabad
has been submitted to the Stock Exchanges within the
specified time.

29. Transactions with related parties

Information on transactions with related parties are given
in Annexure-III in Form AOC-2 and the same forms the
part of this report.

30. Fixed Deposits

Your Company has not accepted any fixed deposits and
as such no principal or interest was outstanding as on the
date of the Balance Sheet.

31. Annual Return

In accordance with the requirements of Section 92 (3) of
the Companies Act, 2013 and Rule 12 (1) of the
Companies (Management and Administration) Rules,
2014, a copy of Annual Return in Form MGT-7 is placed
on the website of the Company at
www.krebsbiochem.com.

32. Directors' Responsibility Statement

Pursuant to Section 134(5) of the Companies Act, 2013,
the Board of Directors, to the best of their knowledge and
ability, confirm that:

i) In the preparation of the annual accounts, the applicable
accounting standards have been followed and there are
no material departures;

ii) They have selected such accounting policies and applied
them consistently and made judgments and estimates that
are reasonable and prudent so as to give a fair and true
view of the state of affairs of the Company at the end of
the financial year;

iii) They have taken proper and sufficient care 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.

iv) They have prepared the annual accounts on a going
concern basis.

v) They have laid down internal financial controls to be
followed by the Company and such internal financial
controls are adequate and operating effectively.

vi) They have devised proper systems to ensure compliance
with the provisions of all applicable laws and that such
systems were adequate and operating effectively.

33. Disclosures relating to Subsidiaries, Associates and
Joint Ventures

The Company does not have any Subsidiary Company,
Associate Company or Joint Ventures Company.

34. Disclosure Requirements

As per SEBI Listing Regulations, Corporate Governance
Report with Auditors' Certificate thereon and Management
Discussion and Analysis are attached, which form part of
this report.

35. Code of Conduct

The Board has laid down a code of conduct for Board
members and senior management personnel of the
Company. The Company has also adopted code of
conduct for independent directors incorporating the role
and functions, duties as laid down in the Companies Act,
2013. The said code of conduct is available on the website

of the Company www.krebsbiochem.com. The Board
members and senior management personnel have
affirmed compliance with the said code of conduct. A
declaration signed by the Managing Director in this regard
is given at the end of this report.

36. Prevention of Insider Trading

The Company has adopted a code of conduct for
prevention of insider trading. All directors, senior
management employees and other employees who have
access to the unpublished price sensitive information of
the Company are governed by the Code. During the year
under report, there has been due compliance with the code
of conduct for prevention of insider trading.

The said code is available in the Company's website
www.krebsbiochem.com.

37. Vigil Mechanism/Whistle Blower Policy

The Company has in place a whistle blower policy and no
personnel have been denied access to the Chairman of
the Audit Committee. The policy also provides for the
safeguarding of whistle blowers. The whistle blower policy
is available on website of the Company
www.krebsbiochem.com.

38. Energy conservation, technology absorption and
foreign exchange earnings outgo

The information on conservation of energy, technology
absorption and foreign exchange earnings and outgo as
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-IV" to this report.

39. Safety, Environment and Health

The Company considers safety, environment and health
as the management responsibility. The employees are
provided training programs at regular intervals on
manufacturing facilities on safety and environment.

40. Significant or material orders passed against the
Company

The Company has received closure order dated 7th
February 2025 issued by A. P. Pollution Control Board for
its Manufacturing Facility situated at Vizag on 9th February
2025. Accordingly, the manufacturing operations of this
manufacturing facility is closed since 9th February 2025.
The Management of the Company is taking necessary
steps to get closure order revocated from the Pollution
Control Board at the earliest.

Except above, there were no significant or material orders
passed during the year against the Company by
regulators/ Courts/Tribunals impacting the going concern
status and operations of the Company in future.

41. Disclosure on Corporate Insolvency Resolution
Process initiated under the Insolvency and
Bankruptcy Code (IBC)

During the year under review, there were no IBC
proceedings initiated/ pending against the Company.

42. Disclosures pertaining to the Sexual Harassment of
Women at the workplace (Prevention, Prohibition and
Redressal) Act, 2013

The Company has complied with the provision relating to
the constitution of Internal Complaints Committee under
the Sexual Harassment of Women at the Workplace
(Prevention, Prohibition and Redressal) Act, 2013.

There are no complaints registered in this matter during
the year under review.

43. Secretarial Standards

The Company is in due compliance with the applicable
secretarial standards issued by the Institute of the
Company Secretaries of India (ICSI).

44. Acknowledgments

Your Directors take this opportunity to express their sincere
appreciation to the shareholders, customers, bankers,
employees, suppliers and other business associates for
the excellent support and co-operation extended by them.

For and on behalf of the Board
Krebs Biochemicals & Industries Limited

Dr. RT Ravi

Chairman
DIN-00272977

Place : Mumbai
Date : 7th August, 2025