OVERVIEW OF FINANCIAL AND BUSINESS
OPERATIONS:

Standalone Financial Summary: On a standalone basis, the
revenue from operations was H 34,739.60 million in FY 2025-26
as against H 30,301.63 millon for FY 2024-25 and the net
profit after tax was H 4,006.67 million in FY 2025-26 as against
H 3,193.36 million for FY 2024-25.

Consolidated Financial Summary: On a consolidated
basis, the revenue from operations was H 53,656.42 million in
FY 2025-26 as against H 44,816.08 million for FY 2024-25 and
the net profit after tax was H 5,950.21 million in FY 2025-26 as
against H 5,015.16 million for FY 2024-25.

For more details, please refer to the Management Discussion
and Analysis report.

On a standalone basis, the Finished Dosages (FD) business
contributed the largest share of revenue of the Company at
64.34% while Pharmaceutical Finished Intermediates (PFI) and
Active Pharmaceutical Ingredients (API) contributed 15.54%
and 20.12% respectively while it was 65.20%, 14.68% and
20.12% for FD, PFI and API respectively for the FY 2024-25.

In FY 2025-26, the Company filed six ANDAs with the USFDA,
three MAA’s in the European region and one OTC application
in Canada. The Company also filed six US DMFs, which will
be used to build future revenue from the API business. The
Company received two tentative USFDA approvals and four
approvals in Europe. The management believes that it will
continue to strengthen its position through dedicated research
and the launch of new products.

Vertical integration has always been the strength and focus
area of the Company. It will continue its focus on its core
business and strengthen it by enhancing its market presence
through backward integration strategies, improving operational
efficiencies and continuous supply chain management. The non¬
core business will also be given equal focus and the Company
shall endeavour towards adding new products, cost leadership
and most importantly offering reliable and consistent services
to all the customers. The Company’s goal of transforming
more of its business into the finished dosage business will
continue and with this objective, the Company will continue to
grow as an integrated Pharmaceutical Company sustainably
and responsibly.

DIVIDEND:

The Board of Directors has recommended a final dividend of
H1.75/- per equity share (Face value H 1/- per equity share) for
the financial year 2025-26.

The dividend payout is in accordance with the Company’s
Dividend Distribution Policy. The Dividend Distribution Policy of
the Company may be accessed on the Company’s website at
https://granulesindia.com/wp-content/uploads/pdf/Dividend-
Distribution-policy.pdf.

MATERIAL CHANGES AFFECTING THE COMPANY:

There have been no material changes and commitments
affecting the financial position of the Company between the end
of the financial year and the date of this report. There has been
no change in the business of the Company.

SHARE CAPITAL:

The authorized share capital of the Company is 50,50,00,000
equity shares of H 1/- each. The paid-up share capital is
24,77,96,921 equity shares of H 1/- each.

The Company had allotted the below mentioned equity shares
during the year under review:

• 1,25,000 equity shares of H 1/- each upon the exercise of an
equal number of stock options by the employees pursuant to
the Employees Stock Option Scheme(s) of the Company.

• 51,28,205 equity shares of H 1/- each on preferential basis to
members of the Non- Promoter caregorey investors.

TRANSFER TO THE INVESTOR EDUCATION &
PROTECTION FUND (IEPF):

In terms of Section 124(5) of the Companies Act, 2013 read with
Investor Education and Protection Fund Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016, unclaimed dividends
amounting to H 10,85,815/- (Ten Lakhs Eighty five Thousand
eight hundred and fifteen rupees only) pertaining to the final
dividend for the financial year 2017-18 and up to the third interim
dividend for the financial year 2018-19 was transferred during
the year under review to the Investor Education and Protection
Fund established by the Central Government. Further, during
the year under review, the Company transferred 10,793 equity
shares to the Investor Education and Protection Fund relating
to the investors who have not claimed any dividend for the last
seven consecutive years.

The details of the investors whose dividend amount and shares
are transferred are available on the website of the Company
athttps://granulesindia.com/investors/investor-resources/
unclaimed-dividend-shares-transferred-to-iepf/.

Further, in accordance with the IEPF Rules, the Board of
Directors has appointed Nodal Officer of the Company for the
purposes of verification of claims of shareholders pertaining
to shares transferred to IEPF and/or refund of dividend from
IEPF Authority. The details of Ms. Chaitanya Tummala, Nodal
Officer is available on the website of the Company.

MANAGEMENT’S DISCUSSION AND ANALYSIS
REPORT:

Management’s Discussion and Analysis Report for the year
under review, as stipulated under regulation 34(2) of the Listing
Regulations, is presented in a separate section, forming part of
the annual report.

SUBSIDIARIES, JOINT VENTURES AND
ASSOCIATE COMPANIES:

SUBSIDIARY COMPANIES, THEIR PERFORMANCE AND
DEVELOPMENTS

Granules Pharmaceuticals, Inc.

Granules Pharmaceuticals, Inc. (GPI), a wholly-owned foreign
subsidiary of the Company located in Virginia, USA focuses
on formulation R&D. During the FY 2025-26, the consolidated
turnover of GPI was H 36,590.01 million against the turnover
of H 29,316.10 million for FY 2024-25 and the profit after tax is
H 3,348.52 million against H 1,698.15 million for FY 2024-25.

Granules USA, Inc., together with Granules Consumer Health,
LLC. has been merged with Granules Pharmaceuticals, Inc.
with effect from April 01, 2025. As a result of this merger,
Granules Consumer Health LLC became a 100% subsidiary
of GPI. During the year GPI also incorporated a wholly
owned subsidiary in Canada titled "Granules Pharmaceuticals
Canada, Inc."

During the year FY 2025-26, GPI filed three ANDAs with USFDA,
approvals for which are awaited.

Granules Life Sciences Private Limited

Granules Life Sciences Private Limited is a wholly owned Indian
subsidiary of the Company located in Hyderabad, India. This
facility has undergone two FDA inspections in the months of
July & Decemeber, 2025 and Establishment Inspection Report
(EIR) was received from the USFDA for both the inspections
with Voluntary Action Indicated (VAI) category. The facility has
a capacity of 10 billion dosage units per annum.

During the FY 2025-26, the Company achieved a turnover of
H 2,119.23 million against the turnover of H 621.23 million for
FY 2024-25 and the profit after tax is H 118.71 million against
H 55.19 million for FY 2024-25.

Granules CZRO Private Limited

Granules CZRO Private Limited is a wholly-owned Indian
subsidiary of the Company was established for manufacturing
green chemicals. It has successfully commissioned the
pilot plant for Dicyandiamide (DCDA) at Visakhapatnam and
achieved its objectives of establishing Indigenous Technology
for DCDA production. However, it is in the process of improving
the Technology to further optimise on cost of Production
by developing a first-of-its-kind continuous process for
DCDA production.

In addition, the Company has developed alternate continuous
manufacturing process technology for para-aminophenol (PAP)
first time in the country and is in the process of executing
a pilot plant to enable decarbonisation of Paracetamol
production. Efforts are also underway to adopt green energy
and green molecule manufacturing technologies aimed at
reducing the overall carbon footprint and achieving net-zero
emissions by 2050.

Ascelis Peptides Private Limited

Ascelis Peptides Private Limited is a wholly owned Indian
subsidiary of the Company and operates as the Group’s
integrated global peptides CDMO platform. The Company was
established for the acquisition of M/s. Senn Chemicals AG,
Switzerland, which was completed in April, 2025. Building on
decades of Swiss peptide expertise, Ascelis provides end to
end development and manufacturing solutions for complex
peptide APIs, amino acid derivatives and peptide fragments,
serving pharmaceutical, cosmetic and theragnostic segments.
During the year under review, the Company progressed with
post acquisition integration and strengthened its India based
research and development footprint, including the establishment
of a Centre of Excellence for peptide development and
characterisation at IIT Hyderabad.

Granules Pharmaceutical, Gmbh

During the year under review, the Company acquired
M/s. Optus 1039. GmbH in Frankfurt, Germany for strategic entry
into the B2C segment and to strengthen consumer engagement
and drive focused growth across key European markets in the
European region. Subsequently the name of M/s. Optus 1039
has been changed to Granules Pharmaceuticals GmbH.

The Policy for determining material subsidiaries as approved
by the Board may be accessed on the Company’s website
athttps://granulesindia.com/wp-content/uploads/2022/03/
Policy-on-Material-Subsidiaries.pdf

JOINT VENTURE /ASSOCIATE COMPANIES

The Company has no joint venture or associate Company during
the period under review.

No other Company except Granules Pharmaceuticals, Gmbh
has become or ceased to be a Company’s subsidiary, joint
venture or associate Company during the period under review.

As per the provisions of Section 129 of the Companies
Act, 2013 read with Companies (Accounts) Rules, 2014,
a separate statement containing the salient features of
the financial statements of the subsidiary Companies is
prepared in Form AOC-1 and it forms part of the consolidated
financial statements.

CONSOLIDATED FINANCIAL STATEMENTS:

The consolidated financial statements of the Company and its
subsidiaries for FY 2025-26 are prepared in compliance with
section 129(3) of the Companies Act, 2013 and regulation 34
of the Listing Regulations and in accordance with the Indian
Accounting Standards (Ind AS) notified under the Companies
(Indian Accounting Standards) Rules, 2015. The audited
consolidated financial statements together with the auditor’s
report thereon form a part of this annual report. The consolidated
financial statements have been prepared on the basis of audited
financial statements of the Company and its subsidiaries as
approved by their respective Boards. As per the provisions
of section 136 of the Companies Act, 2013, the Company

has placed separate audited accounts of its subsidiaries on
its website athttps://granulesindia.com/investors/financial-
reports/annual-accounts-of-subsidiaries-jvs/ and a copy of
separate audited accounts of its subsidiaries will be provided to
the members at their request till the date of the Annual General
Meeting of the Company.

COMPLIANCE WITH SECRETARIAL STANDARDS:

The Company has complied with Secretarial Standards issued
by the Institute of Company Secretaries of India.

DIRECTOR’S RESPONSIBILITY STATEMENT:

Pursuant to the requirement of section 134(5) of the Companies
Act, 2013, with respect to the Director’s Responsibility
Statement, the Board of Directors of the Company to the best
of their knowledge and ability hereby confirm that:

a) in the preparation of the annual accounts for the year
ended March 31, 2026, the applicable accounting
standards have been followed and there are no material
departures from the same;

b) accounting policies 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 as at March 31,2026
and of the profit and loss of the Company for the year
ended on that date;

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 have been prepared on a going
concern basis for the financial year ended March 31,2026;

e) adequate internal financial controls for the Company
to follow have been laid down and these are operating
effectively; and

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

CORPORATE GOVERNANCE:

The Company is committed to maintaining the highest
standards of corporate governance and adhering to the
corporate governance requirements set out by the Securities
and Exchange Board of India (SEBI). The report on corporate
governance as stipulated under the Listing Regulations forms
an integral part of this report. The requisite certificate from the
secretarial auditor of the Company confirming compliance with
the conditions of corporate governance is attached to the report
on corporate governance.

BUSINESS RESPONSIBILITY & SUSTAINABILITY
REPORT:

The Business Responsibility & Sustainability Report for the
year under review, as stipulated under regulation 34(2)(f) of the
Listing Regulations, is presented in a separate section, forming
part of the annual report.

RELATED PARTY TRANSACTIONS:

All related party transactions entered by the Company during the
financial year 2025-26 with related parties were in the ordinary
course of business and are on an arm’s length basis. During the
year, except for the wholly-owned subsidiaries, the Company
had not entered into any transaction with related parties which
could be considered material in accordance with the policy of
the Company on the materiality of related party transactions.

The Policy on the materiality of related party transactions and
dealing with related party transactions as approved by the
Board may be accessed on the Company’s website athttps://
granulesindia.com/wp-content/uploads/2025/02/Granules-
Related-Partv-Transactions-Policv-Updated-24.01.2025.pdf

The particulars of transactions with related parties referred to
in section 188(1) are prepared in Form No. AOC-2 pursuant
to clause (h) of sub-Section (3) of section 134 of the Act and
Rule 8(2) of the Companies (Accounts) Rules, 2014 and the
same is annexed herewith as Annexure IV to the Board’s report.

The details of the transactions with related parties were also
provided in the notes to the financial statements.

CORPORATE SOCIAL RESPONSIBILITY:

The Sustainability & Corporate Social Responsibility Committee
is comprised of four members out of which two are Independent
Directors. The details of the constitution of the Committee and
its meetings are provided in the corporate governance report.
The CSR activities of the Company are governed through
the Corporate Social Responsibility Policy (CSR Policy)
approved by the Board and in compliance with Schedule
VII of the Act. The CSR Policy may be accessed on the
Company’s website athttps://granulesindia.com/wp-content/
uploads/2025/12/CSR-Policy.pdf

During the year under review, the Company has spent H 112.73
million on CSR activities. The annual report on CSR activities is
annexed herewith as Annexure I to the Board’s report.

NOMINATION AND REMUNERATION COMMITTEE:

During the year under review, the Committee comprised three
members and the details of the constitution of the Committee
and its meetings are provided in the corporate governance
report. The Chairman of the Committee and all other members
are Independent Directors, thereby resulting in independent and
unbiased decisions.

The Performance Evaluation and Remuneration Policy
framed by the Committee and approved by the Board is
directed towards rewarding the performance of Executive and

Non-Executive Directors, Key Managerial Personnel and
Senior Management Personnel of the Company based on
a review of achievements periodically. The Performance
Evaluation and Remuneration Policy may be accessed on the
Company’s website athttps://granulesindia.com/wp-content/
uploads/2025/11/Performance-Evaluation-And-Remuneration-
Policy-2025-final.pdf

ENTERPRISE RISK MANAGEMENT:

The Company has a Risk Management Committee of the Board
and the details of the Committee and its terms of reference are
set out in the corporate governance report.

The Risk Management Committee has been entrusted with the
responsibility to:

(a) oversee and approve the Company’s enterprise risk
management framework;

(b) oversee all the risks that the organization faces such as
financial, operational, sectoral, sustainability (particularly,
ESG-related risks), information, cyber security risks or any
other risk as may be determined by the Committee;

(c) ensure that appropriate methodology, processes, and
systems are in place to monitor, evaluate and mitigate
risks associated with the business of the Company.

The Company has a proper process for risk management.

INTERNAL FINANCIAL CONTROLS:

Internal financial controls are an integrated part of the risk
management process, addressing financial and financial
reporting risks. The internal financial controls have been
documented, digitized and embedded in the business
processes. An assurance of the effectiveness of internal financial
controls is obtained through management reviews, control
self-assessment, continuous monitoring by functional experts
as well as testing of the internal financial control systems by
external consultants on behalf of the management at least
once a year. We believe that these systems provide reasonable
assurance that our internal financial controls are designed
effectively and are operating as intended.

INTERNAL AUDIT AND CONTROLS:

The Company continues to engage M/s. Dhanunjaya & Haranath,
Chartered Accountants as its internal auditors. During the
year, the Company continued to implement its suggestions
and recommendations to improve internal controls. Their
scope of work includes a review of the operational efficiency,
the effectiveness of systems & processes, compliance and
assessing the robustness of the internal control systems in all
areas of operations and the financial closure process. Internal
auditor’s findings are discussed and suitable corrective actions
are taken as per the directions of the Audit Committee on an
ongoing basis to improve the performance of the Company.

The Company’s internal control systems are well established
and are commensurate with the nature of its business, the size
and complexity of its operations. The Audit Committee reviews
the adequacy and effectiveness of the Company’s internal
control environment and monitors the implementation of audit
recommendations.

The recommendations/suggestions of the internal auditors are
discussed in the Audit Committee meetings.

DIRECTORS AND KEY MANAGERIAL PERSONNEL:

Assessment and appointment of members to the Board are
based on a combination of the criteria that include ethics,
personal and professional stature, domain expertise, gender
diversity and specific qualifications required for the position.
While appointing the Independent Directors, the potential Board
member is also assessed on the basis of the independence
criteria defined in Section 149(6) of the Act, and regulation 16(1)
(b) of the Listing Regulations.

Retirement by Rotation

In accordance with the provisions of Section 152 of the
Companies Act, 2013 and the Articles of Association of
the Company, Ms. Priyanka Chigurupati, (DIN: 01793431)
Executive Director of the Company retires by rotation at the
ensuing Annual General Meeting and being eligible, has offered
herself for re-appointment.

The Board recommends the above re-appointment to the
shareholders. The notice convening the 35^th Annual General
Meeting to be held on August 06, 2026 sets out the details.

Cessation

Dr. Kandiraju Venkata Sitaram Rao ceased to be
Joint Managing Director & CEO of the Company consequent to
his resignation from his office with effect from August 01,2025.

The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria
of independence as prescribed both under the Companies Act
and the Listing Regulations.

The Board of Directors has complete access to the information
within the Company. Independent Directors have the freedom to
interact with the Company’s core management team. Interactions
happen during the Board / Committee meetings when
executives of the Company are asked to make presentations
about the performance of the Company. Apart from this, they
also have independent interactions with the statutory auditors,
the internal auditors and external advisors appointed from
time to time. Further, they meet without the presence of any
management personnel and their meetings are conducted to
enable the Independent Directors to discuss matters about the
Company’s affairs and put forth their combined views to the
Board of Directors of the Company.

Key Managerial Personnel

The following have been designated as the key managerial
personnel of the Company pursuant to section 2(51) and 203 of

the Companies Act, 2013 read with the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014:

Dr. Krishna Prasad Chigurupati - Chairman and Managing Director

Ms. Uma Devi Chigurupati - Executive Director

Mr. Harsha Chigurupati - Executive Director

Ms. Priyanka Chigurupati - Executive Director

Mr. Mukesh Surana - Chief Financial Officer

Ms. Chaitanya Tummala - Company Secretary

BOARD EVALUATION:

The Company has devised a policy for the performance
evaluation of the Independent Directors, Board, Committees
and other individual Directors and also includes criteria for
performance evaluation of the Non-Executive Directors and
Executive Directors. Pursuant to the provisions of the Companies
Act, 2013 read with the Rules issued thereunder and the
Listing Regulations (including any statutory modification(s) or
re-enactment(s) for the time being in force), the process
for annual evaluation of the performance of the Board, its
Committees and individual Directors was carried out.

The performance of the Board and individual Directors
was evaluated by the Board after seeking input from all the
Directors. The criteria for performance evaluation of the Board
included aspects such as Board composition and structure, the
effectiveness of Board processes, contribution to long-term
strategic planning, etc. The performance of the Committees
was evaluated by the Board after seeking input from the
Committee Members.

In a separate meeting, the Independent Directors evaluated the
performance of Non-Independent Directors and the performance
of the Board as a whole including the Chairman of the Board.

EMPLOYEE STOCK OPTION SCHEME:

The Company’s Employees Stock Option Schemes viz.
ESOS-2009 & ESOS-2017 have been in place and the Company
has made grants under ESOS-2009 & ESOS-2017 to the eligible
employees of the Company and its subsidiaries. The Nomination
and Remuneration Committee of the Board of Directors of the
Company, inter alia, administers and monitors the Employees’
Stock Option Schemes. The Company did not make any grant
under ESOS- 2017 during the FY 2025-26. There has not been
any material change in the Employee Stock Option Schemes
during the financial year under review. The Schemes and
their implementation are in line with the SEBI (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021
(“SBEB Regulations”) as amended thereof.

The applicable disclosures as stipulated under the
SEBI guidelines as of March 31, 2026 (cumulative position)
about the Employee’s Stock Option Schemes are herein under¬
provided. The issue of equity shares pursuant to the exercise of
options does not affect the Statement of Profit and Loss of the
Company, as the exercise is made at the market price prevailing
as on the date of the grant plus taxes as applicable.

AUDITORS AND THEIR REPORTS:

Statutory Auditors

M/s. S.R. Batliboi & Associates LLP, a Firm of Chartered
Accountants, Hyderabad was appointed as the statutory
auditors of the Company for a term of 5 (five) consecutive years,
at the 31^st Annual General Meeting held on July 27, 2022. They
have confirmed that they are not disqualified from continuing as
auditors of the Company.

The notes on the financial statement referred to in the
auditors’ report are self-explanatory and do not call for any
further comments. The auditors’ report does not contain any
qualification, reservation, adverse remark or disclaimer.

Secretarial Auditor

M/s. Saurabh Poddar & Associates, Company Secretaries
(Registration No. S2012AP177700) was appointed as the
secretarial auditor of the Company for a period of 5 (five)
consecutive years, at the 34^th Annual General Meeting held on
Augsut 07, 2025. Further, Mr. Saurabh Poddar, Proprietor of
M/s. Saurabh Poddar & Associates, Company Secretaries had
confirmed that he meets the criteria for continuing as secretarial
auditor as specified in regulation 24 (A) of listing regulations,
section 203 and all other applicable provisions of the Act.

The secretarial audit report of the Company and its material
unlisted Indian subsidiary for the financial year ended
March 31, 2026 is annexed herewith as Annexure III to the
Board’s report. The secretarial audit report does not contain any
qualification, reservation or adverse remark.

DISCLOSURES:

Meetings of the Board

Seven meetings of the Board of Directors were held during the
year. The particulars of meetings held and attended by each
Director are detailed in the Corporate Governance report, which
forms part of this report.

Audit Committee

The Audit Committee is comprised of four (4) Members
out of which three (3) are Independent Directors and one (1)
is an Executive Director. During the year under review, five
Committee meetings were held, details of which are provided in
the Corporate Governance report. During the year under review,
there were no instances when the recommendations of the
Audit Committee were not accepted by the Board.

Vigil Mechanism & Whistleblower Policy

The Company has established a mechanism for Directors and
employees of the Company to report concerns about unethical
behaviour, actual or suspected fraud, or violation of the Code.
It also provides adequate safeguards against the victimization
of employees who avail of the mechanism and allows direct
access to the Chairperson of the Audit Committee in exceptional
cases. During the year, no person was denied access to the
Audit Committee.

The Vigil Mechanism & Whistleblower policy may be
accessed on the Company’s website athttps://granulesindia.
com/wp-content/uploads/2026/02/GIL-Whistle-blower-
policy-Jan-2026.pdf

Code of Conduct

A declaration regarding compliance with the code of conduct
signed by the Company’s Chairman & Managing Directors is
published in the Corporate Governance report, which forms
part of the annual report.

Particulars of Loans given, Investments made,
Guarantees given and Securities provided

Particulars of loans given, investments made, guarantees given
and securities provided are provided in the standalone financial
statement (Please refer to Note No.4A, 4B, 7C and 26(b) to the
standalone financial statement).

Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo

The particulars relating to the conservation of energy, technology
absorption, foreign exchange earnings and outgo, as required to
be disclosed under the Act, are annexed herewith as Annexure V
to the Board’s report.

Annual Return

Pursuant to section 92(3) read with section 134(3)(a) of the
Act, the Annual Return as of March 31, 2026 is placed on
the website of the Company and may be accessed on the
Company’s website athttps://granulesindia.com/investors/
notice-disclosures/annual-returns/.

Particulars of Employees and Related Disclosures

Disclosures pertaining to remuneration and other details as
required under section 197(12) of the Act, read with Rule 5(1) of
the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, are annexed herewith as Annexure VI
to the Board’s report.

In terms of the provisions of section 197(12) of the Act read
with Rules 5(2) and 5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, as
amended thereof, a statement showing the names and other
particulars of the employees drawing remuneration over the
limits set out in the said rules forms part of this report.

Considering the first proviso to section 136 (1) of the Act, the
annual report, excluding the aforesaid information is being
sent to the members of the Company. The said information is
available for inspection by the members at the registered office
of the Company or through electronic mode during business
hours on working days up to the date of the forthcoming 35^th
AGM of the Company. Any member interested in obtaining a
copy thereof may write to the Company Secretary in this regard.

The Directors further state that the remuneration paid to the
Key Managerial Personnel and Senior Management Personnel
is as per the Company's Performance Evaluation and
Remuneration Policy.

Maintenance of Cost Records specified by the Central
Government under Section 148 of the Companies Act,
2013

The Company has complied with the provisions relating to
the maintenance of Cost Records as specified by the Central
Government under section 148 of the Companies Act, 2013
during the year under review.

Policy on Sexual Harassment and Constitution of Internal
Complaints Committee under the Sexual Harassment
of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013

The Company has a Policy on “Prevention of Sexual Harassment
of Women at Workplace” for the matters connected therewith
or incidental thereto covering all the aspects as contained
under the “The Sexual Harassment of Women at Workplace
(Prohibition, Prevention and Redressal) Act, 2013” and
constituted an Internal Complaints Committee under the Sexual
Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013.

No complaints were pending at the beginning of the year.
During the year under review, two concern(s)/complaint(s) were
reported and resolved. No complaint was pending for more than
ninety days and as of the end of the financial year. The Company
regularly conducts awareness programs for the employees.

The Code on Social Security, 2020 -Maternity benefit

The Company is in compliance with the applicable provisions
relating to maternity benefits as prescribed under the Maternity
Benefit Act, 1961/ the Code on Social Security, 2020.

Declaration on funds raised through Preferential
Allotment and utilisation of such funds during the year
under review

Pursuant to the approval of the Board in their meetings held
on December 23, 2025 & January 13, 2026, approval of the
shareholders in the Extraordinary General Meeting held on
January 22, 2026 and In-Principal approval for the preferential
issue received from the stock exchanges dated February 10,
2026, the following securities were allotted in the meeting of
the Share Transfer and Stakeholders Relationship Committee of
the Board of Directors held on February 23, 2026 upon receipt
of the subscription amount i.e., H365.625 crores for convertible
warrants (25% of the consideration of the warrants) &
H 300 crores for equity shares.

• Allotment of 2,50,00,000 convertible warrants on preferential
basis to the members of Promoter group and Non-Promoter
investor category, convertible into equivalent number of fully
paid equity shares of the Company having face value of H1/-
(Rupee one only) each, in one or more tranches within a period
of 18 months from the date of allotment of convertible warrants.

• Allotment of 51,28,205 fully paid-up equity shares of the
Company at face value of H1/- (Rupee one only) each to the
members of the non-promoter category, on a preferential basis.

The object of the preferential issue was to utilize the proceeds to
meet the funding of business operations i.e., capital expenditure,
operating expenses, investment in wholly owned subsidiary for
its repayment of loan & working capital requrirement and/or for
general corporate purposes of the Company.

During the financial year 2025-26, no warrants were converted
into Equity Shares.

The proceeds realized upon preferential issue has not been fully
utilized by the Company and the details of the utilisation has been
provided in Coporate Governance section of this annual report.

GENERAL

No disclosure or reporting is required in respect of the following
matters, as there were no transactions on these items during
the year under review:

• Details relating to deposits covered under Chapter V of the Act.

• Issue of equity shares with differential rights as to dividend,
voting or otherwise.

• Issue of shares (including sweat equity shares) to employees
of the Company under any scheme save and except the
Employee Stock Option Scheme referred to in this report.

• Neither the Managing Director nor the Whole-time Directors of
the Company received any remuneration or commission from
any of its subsidiaries during the financial year 2025-26.

• The Company does not have any scheme of provision of
money for the purchase of its shares by employees or by
trustees for the benefit of employees.

• Cost Audit is not applicable for the financial year 2025-26.

• No significant or material orders were passed by the Regulators
or Courts or Tribunals which impact the going concern status
and the Company’s operations in the future.

• No fraud has been reported by the auditors to the Audit
Committee or the Board.

• There are no proceedings pending under the Insolvency and
Bankruptcy Code, 2016.

• There was no instance of a one-time settlement with any Bank
or Financial Institution.

ACKNOWLEDGEMENTS:

We express our sincere appreciation and thank our valued
shareholders, customers, bankers, business partners/
associates, analysts, financial institutions, insurance companies
and Central and State government departments for their
continued support towards the Company.

We are pleased to record our appreciation of the sincere and
dedicated services of the employees and workmen at all levels.

On behalf of the Board of Directors

Dr. Krishna Prasad Chigurupati

Chairman and Managing Director
Hyderabad, April 29, 2026 DIN: 00020180