The Board of Directors of your Company take great pleasure in presenting the 18^th Annual Report on the business and operations of
the Company together with the Audited Financial Statements for the year ended March 31, 2025.

1. FINANCIAL RESULTS:

The financial performance of the Company for the year ended March 31, 2025 is summarized below:

2. FINANCIAL PERFORMANCE:

During the year under review, total revenue earned by the Company was Rs. 10223.10 Lakhs as compared toRs. 8831.33 Lakhs
in previous year. The expenditure incurred during the year was Rs. 10100.53 Lakhs as against the amount of Rs. 8378.72 Lakhs
during the previous year. The Company recorded a Net Profit after tax of Rs. 81.73 Lakhs as compared to the previous year of
Rs. 71.89 Lakhs and it recorded Increase by 10.75%. Your directors are optimistic of future growth.

3. NATURE OF BUSINESS:

The Company is into pharmaceutical business, mainly dealing in Active Pharmaceutical Ingredient, pharmaceutical formulations,
surgical products, veterinary supplements operating in domestic and export markets.

The success of the Company depends significantly on ability to commercialize new pharmaceutical products in India and across
various markets around the world.

4. DIVIDEND:

Your Company is committed towards enhancing shareholder value for its investors. The Company has considered it prudent
not to recommend the dividend for F.Y. 2024 - 2025 in order to maintain its liquidity position.

5. LISTING OF EQUITY SHARES:

The equity shares of the Company are listed on the trading platform of National Stock Exchange of India Limited (NSE), a
recognized stock exchange having nationwide trading terminal.

6. TRANSFER TO RESERVES:

The Company has not transferred any amount to the reserves during the year ended March 31, 2025.

7. DEPOSITS:

The Company has not accepted any deposits from public and as such no amount on account of principal or interest on deposits
from public was outstanding as on March 31, 2025 in terms of Section 76 of the CompaniesAct, 2013.

8. 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.

9. CHANGE IN THE NATURE OF BUSINESS:

There has been no change in the nature of business during the year under review.

10. INTERNAL FINANCIAL CONTROLS:

The Company has well placed, proper and adequate internal financial control system that commensurate with the size, scale
and complexity of its operations. The Company has in place a mechanism to identify, assess, monitor and mitigate various risks
to key business objectives. Major risks identified by the business and functions are systematically addressed through mitigation
action on continuing basis. These are routinely tested by InternalAuditors. The Audit observations on internal financial controls
are periodically reported to the Audit Committee.

11. SHARE CAPITAL:

As on March 31, 2025, the paid-up Equity Share Capital of the Company stood at ' 26,09,24,260, comprising 13,04,62,130 equity
shares of ' 2/- each.

During the year under review, the Authorized Share Capital of the Company was increased from ' 22,00,00,000 (Rupees
Twenty-Two Crore) divided into 2,20,00,000 (Two Crore Twenty Lakh) equity shares of ' 10/- each to ' 27,00,00,000 (Rupees
Twenty-Seven Crore) divided into 13,50,00,000 (Thirteen Crore Fifty Lakh) equity shares of ' 2/- each, ranking pari passu in all
respects with the existing equity shares.

During the year under review, there were changes in the paid-up share capital of the Company, which are summarized below:

* The Company has converted 11,635,000 Share Warrants into 11,635,000 Equity Shares. However, as of the date of filing this
report, listing approval for these shares has not yet been received. Furthermore, the proportionate Bonus Issue of 11,635,000
Equity Shares (on a 1:1 basis) is also pending for the same, resulting in a total of 23,270,000 Equity Shares awaiting listing
approval.

12. MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY:

There is no material change and commitment affecting the financial position of the Company that have occurredafter closure of
the financial year of the Company to which the financial statements relate and the date of the report.

13. RELATED PARTY TRANSACTIONS:

During the period under review, the transactions entered into with related parties during the financial year wereon arm's length
pricing basis and in the ordinary course of business and do not attract the provisions of Section 188 of the Act. There were no
materially significant transactions with related parties during the financial year which were in conflict with the interest of the
Company. The particulars of contracts or arrangements with related parties referred to in Section 188(1) and applicable rules of
the Companies Act, is disclosed in Form AOC-2 as shown in ANNEXURE - A.

All Related Party Transactions are periodically placed before the Audit Committee and also before the Board forapproval. Prior
omnibus approval of the Audit Committee is obtained for the transactions which are of a foreseeable and repetitive nature.
The policy on Related Party Transactions as approved by the Board is available on website of the Company visa: https://www.
vaishalipharma.com/investors/Company-policy.

14. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES:

As of the date of this Report, the Company has invested in Kesar Pharma Limited on 5 May 2025, acquiring an 11.3% equity
stake. Apart from this investment, the Company has no Subsidiary, Joint Venture, or any other Associate Company.

15. DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to Section 134 of the Companies Act, 2013, with respect to Directors' Responsibility Statement, it is hereby confirmed
that:

a) In the preparation of the annual accounts for the year ended March 31, 2025, the applicable accounting standards have
been followed along with proper explanation relating to material departures;

b) The Directors have selected such accounting policies 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 on March 31,
2025 and of the profit and loss of the Company for that period ended on that date;

c) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with
the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;

d) The Directors had prepared the annual accounts on a going concern basis; and

e) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial
controls are adequate and were operating effectively.

f) The Directors have devised proper system to ensure compliance with the provisions of all applicable laws and that such
systems are adequate and operating effectively.

16. DIRECTORS AND KEY MANAGERIAL PERSONNEL:

A. BOARD OF DIRECTORS:

The Board of Directors of the Company comprise of 6 (Six) Directors with combination of 3 (Six) Independent Directors
and 3 (Three) Executive Directors as on March 31, 2025.

The composition of the Board of Directors and Key Managerial Personnel is as under:

Pursuant to the provisions of Section 149 of the Act, the Independent Directors have submitted declarations that each of
them meet the criteria of independence as provided in Section 149(6) of the Act along with Rules framed thereunder and
Regulation 16(1)(b) of the SEBI Listing Regulations. There has been no change in the circumstances affecting their status
as Independent Directors of the Company.

During the year and as on date of this report, following were the changes in Director/ Key Managerial Personnel:

1. Mr. Bhaveshkumar Upadhyay (DIN: 08384922) was appointed as a Non-Executive Independent Director of the
Company in the Board meeting held on January 28, 2025. His appointment was subsequently regularized through
Postal Ballot for a term of five consecutive years, upto January 27, 2030.

2. Re-appointment of Mr. Manish Bhagwandas Ved as an Independent Director of the Company through Postal Ballot
for a Second term of five consecutive years, upto 30^th December, 2029.

3. Mr. Ratnesh Singh, the Chief Financial Officer of the Company, resigned from the position with effect from February
28, 2025 due to personal reason and other Occupancies.

4. Mr. Dewansh Ajay Vasani, was appointed as the Chief Financial Officer of the Company, with effect from May 24,
2025.

5. Mr. Ashvin Jamnadas Ganatra (DIN: 08653815), Non-Executive Independent Director of the Company, retired upon
the successful completion of his second five-year term as a Non-Executive Independent Director, with effect from
January 24, 2025.

B. RETIREMENT BY ROTATION:

In accordance with the provisions of Section 152(6) and other applicable provisions of the Act, Mr. Dewansh Vasani (DIN:
08111804) will retire by rotation at the ensuing Annual General Meeting of the Company and being eligible, offers himself
for re-appointment and will continue as Executive Director of the Company. The Board recommends his re-appointment.

17. KEY MANAGERIAL PERSONNEL:

Pursuant to Section 2(51) of the Companies Act, 2013, read with the Rules framed there under, the following persons have been
designated as Key Managerial Personnel of the Company:

18. INDEPENDENT DIRECTORS' DECLARATION:

The Independent Directors were appointed at the Board meeting and hold office for a fixed term not exceeding five years and
are not liable to retire by rotation. In accordance with Section 149(7) of the Companies Act 2013, All Independent Directors of the
Company have submitted the requisite declarations confirming that they meet the criteria of independence as prescribed under
Section 149(6) of the Act read with Regulation 16 and 25(8) of SEBI Listing Regulations. The Independent Directors have also
confirmed that they have complied with Schedule IV of the Act and the Company's Code of Conduct.

19. FAMILIARIZATION PROGRAMME:

The Familiarization Programme for Independent Directors aims to provide them an opportunity to familiarize with the
Company, its Management and its operations so as to gain a clear understanding of their roles, rights and responsibilities and
contribute significantly towards the growth of the Company. They have full opportunity to interact with Senior Management
Personnel and are provided all the documents required and sought by them for enabling them to have a good understanding
of the Company, its business model and various operations andthe industry of which it is a part. The policy undertaken by the
Company in this respect has been disclosed on the website of the Company at https://www.vaishalipharma.com/investors/
Company-policy.

20. VIGIL MECHANISM

Pursuant to the provisions of Section 177 (9) & (10) of the Act read with Rule 7 of the Companies (Meeting of Board and its Powers)
Rules, 2014, Vigil Mechanism for Directors and employees to report genuine concern and grievances has been established. The
said mechanism is governed by the Audit Committee. The details of the policy is available on the website of the Company at
https://www.vaishalipharma.com/investors/Company-policy.

21. BOARD AND DIRECTOR'S EVALUATION:

The Board of Directors has carried out an annual evaluation of its own performance, Board, Committees and Individual Directors
pursuant to the provisions of the Act and the Corporate Governance requirements as prescribed by Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015 ("SEBI Listing Regulations").

The performance of the Board was evaluated by the Board Members after seeking inputs from all the Directors on the basis of
the criteria such as the Board composition and structure, effectiveness of Board processes, information and functioning, etc.

The performance of the Committees was evaluated by the Board after seeking inputs from the Committee Members on the basis
of the criteria such as the composition of Committees, effectiveness of Committee Meetings, etc.

The Board and the Nomination and Remuneration Committee reviewed the performance of the Individual Directors on the
basis of the criteria such as the contribution of the Individual Director to the Board and Committee meetings like preparedness
on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc.

In a separate meeting of Independent Directors, performance of Non-Independent Directors, performance of the Board as a
whole and performance of the Chairman was evaluated, taking into account the views of Executive Directors and Non-Executive
Directors. The same was discussed at the Board Meeting that followed the meeting of the Independent Directors, at which the
performance of the Board, its Committees and Individual Directors was also discussed. Performance evaluation of Independent
Directors was done by the entire Board, excluding the Independent Director being evaluated.

22. REMUNERATION POLICY:

The Board has adopted a policy for selection and appointment of Directors, Senior Management and their remuneration in order
to comply with the requirement under the Companies Act, 2013 and SEBI (LODR) Regulations, 2015. The brief information
about Remuneration Policy is provided in the Corporate Governance Report which is annexed to this report.

The policy of the Company on director's appointment and remuneration is uploaded on to the Company's website and available
at https://www.vaishalipharma.com/investors/Company-policy/.

23. MEETINGS OF THE BOARD:

Total Sixteen (16) Board Meetings were held during the financial year 2024 - 2025. For details of the meeting ofthe Board please
refer to the Corporate Governance Report which is a part of this report.

24. CONSTITUTION OF COMMITTEES:

In compliance of SEBI Listing Regulations and provisions of Companies Act, 2013, the Board of Directors constituted three
Committees to comply with the requirements of listing, the Company has constituted the following Committees

1. Audit Committee

2. Nomination and Remuneration Committee

3. Stakeholder Relationship Committee.

25. AUDIT COMMITTEE:

Total Eight (8) Audit Committee Meetings were and held during the financial year 2024 - 2025. For details ofthe meeting and the
composition of the Committee, kindly refer the Corporate Governance Report, which is apart of this report.

26. NOMINATION AND REMUNERATION COMMITTEE:

Total Three (3) Nomination and Remuneration Committee Meeting was held during the financial year 2024 - 2025. For details of
the meeting and the composition of the Committee, kindly refer the Corporate Governance Report, which is a part of this report.

In accordance with the provisions of the Section 178 of the Companies Act, 2013 read along with the applicable Rules, the
Company has formulated "Nomination and Remuneration Policy" containing criteria for determining qualifications, positive
attributes, independence of a director and other matters provided under section 178 of Companies Act, 2013 for selection of any
Director, Key Managerial Personnel and Senior Management Employees. The said policy is available on the Company's website
and the web link thereto ishttps://www.vaishalipharma.com/investors/Company-policy.

27. STAKEHOLDER RELATIONSHIP COMMITTEE:

Total Two (2) Stakeholder Relationship Committee Meetings were and held during the financial year 2024 - 2025. For
details of the meeting and the composition of the Committee kindly refer the Corporate Governance Report, which is a part of
this report.

28. AUDITORS:

a. STATUTORY AUDITORS:

In accordance with the provisions of Section 139 of the Companies Act, 2013 and Companies (Audit and Auditors)
Rules, 2014, M/s Raman S. Shah & Associates, Chartered Accountants, having Firm Registration No.: 119891W has been
appointed as Statutory Auditors of the Company by the members their 15^th Annual General Meeting held on September
30, 2022 to hold office for second term of five consecutive years i.e. till the conclusion of Annual General Meeting for the
financial year 2026-2027.

There being no qualification or adverse remark in the Auditor's Report and hence, the report is self- explanatory.

b. INTERNAL AUDITOR:

M/S. Yogesh J Walavalkar, Chartered Accountants has been appointed as internal Auditor for the Financial Year 2025¬
2026.

The Internal Auditors reports to the Audit Committee of the Board, which helps to maintain its objectivity and
Independence. The scope and authority of the Internal Audit function is defined by Audit Committee.

c. SECRETARIAL AUDITOR:

In compliance with the provisions of Section 204 of the Companies Act, 2013, the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 and SEBI Listing Regulation, as amended, the Board of Directors has,
on the recommendation of Audit Committee considered Appointment of M/s. HD and Associates, Practicing Company
Secretaries, as Secretarial Auditors of the Company for conducting Secretarial Audit for financial year 2025 - 2026.

The Secretarial Auditor's Report for Financial Year 2024-25 is annexed herewith as ANNEXURE - B.

29. MAINTENANCE OF COST RECORDS:

The maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of the Section 148 of
the Act in respect of the activities carried on by the Company.

30. SECRETARIAL STANDARDS:

The Directors declared that applicable Secretarial Standards relating to 'Meetings of the Board of Directors' and 'General
Meetings' respectively, has been duly followed.

31. CORPORATE GOVERNANCE:

Your Company is committed to maintain the highest standards of corporate governance. We believe in adherence to good
corporate practices, implement policies and guidelines and develop a culture of the best management practices and compliance
with the law coupled with the highest standards of integrity, transparency, accountability and ethics in all business matters to
enhance and retain investor trust, long-term shareholder valueand respect minority rights in all our business decisions.

The Corporate Governance Report of the Company confirming compliance with the conditions of corporate governance as
stipulated under SEBI Listing Regulations forms part of the Annual Report.

The Certificate on Corporate Governance Compliance issued by Secretarial Auditor is enclosed in ANNEXURE - C.

32. CORPORATE SOCIAL RESPONSIBILITY:

As the provisions of section 135 of Companies Act, 2013 dealing with Corporate Social Responsibility are applicable to the
Company during the financial year, the Corporate Social Responsibility Policy of the Company is available on the website of the
Company at www.vaishalipharma.com/investors/company-policy/

Further, the Corporate Social Report activities carried out for FY 24-25 forms part of the Annual Report, enclosed at ANNEXURE
-D.

33. PARTICULARS OF EMPLOYEES:

No employee was employed by the Company receiving remuneration prescribed under Rule 5(2) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014 (Rules) and the rules framedthereunder.

Disclosures with respect to the remuneration of Directors and employees as required under Section 197 of the Act and Rule 5 (1)
of the Rules have been appended as ANNEXURE - E to this report.

34. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

Management Discussion and Analysis Report for the financial year 2024 - 2025, as stipulated under Regulation 34(2)(e) of the
SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as "the SEBI LODR"), is
presented in a separate section forming part of the Annual Report as ANNEXURE - F.

35. DEMATERIALISATION OF EQUITY SHARES AND SHARE WARRANTS:

Equity Shares and Share warrants of the Company are in dematerialized form with Depositories viz. NSDL andCDSL.

The Equity ISIN No. allotted is INE972X01022.

The Share Warrant ISIN No. allotted is INE972X13019.

36. DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,PROHIBITION AND
REDRESSAL) ACT, 2013:

The Company is committed and dedicated in providing a healthy and harassment free work environment to every individual of
the Company, a work environment that does not tolerate sexual harassment. We highly respect dignity of everyone involved at
our work place, whether they are employees, suppliers or our customers. We require all employees to strictly maintain mutual
respect and positive attitude towards each other.

The Company has adopted a policy for prevention of Sexual Harassment of Women at Workplace. No complaints or grievances
were noticed under the aforesaid policy during the period under review.

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

As on the date of this report, the constitution of the Internal Complaints Committee is as under:

37. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGEEARNINGS AND OUTGO:

a) CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION:

Considering the nature of activities undertaken by the Company, above clauses of Section 134 of the Companies Act, 2013
pertaining to the Conservation of Energy, Technology absorption are not applicableto the Company.

b) FOREIGN EXCHANGE EARNINGS AND OUTGO:

During the year there were foreign exchange inflow of Rs. 2991.19 lakhs (PY: Rs. 1843.44 lakhs) on account of export of
goods on FOB basis and foreign outflow as follows: -

38. INSURANCE & RISK MANAGEMENT:

Business risks exist for any enterprise having national and international exposure. Your Company also faces some such risks,
the key ones being - a longer than anticipated delay in economic revival, unfavorable exchange rate fluctuations, emergence of
inflationary conditions, rise in counterfeits and look-alikes and any unexpected changes in regulatory framework.

The Company is well aware of these risks and challenges and has put in place mechanisms to ensure that theyare managed and
mitigated with adequate timely actions.

39. MATERNITY BENEFITS:

Your Company is committed to upholding the rights and welfare of its women employees. During the year under review, the
Company continued to comply with the provisions of the Maternity Benefit Act, 1961, as amended from time to time.

The Company provides maternity benefits to eligible female employees, including paid maternity leave, nursing breaks,
and other necessary facilities, in accordance with the law. The Company also supports a conducive and inclusive workplace
environment to ensure the health, safety, and dignity of women employees during and after maternity.

40. PENALITIES / PUNISHMENT / COMPOUNDING OF OFFENCES:

During the last three years, there were no instances of non-compliance by the Company on any matters related to the capital
markets or penalties or strictures imposed by the Stock Exchange, SEBI, or any other statutory authority, except for a penalty
under Schedule XIX - Para (2) of the SEBI (ICDR) Regulations, 2018, amounting to '21,24,000 (including GST), and a penalty of
'15,33,600 imposed by NSE for delay in the bonus issue due to the pendency of the warrant application, with the record date of
15th October 2024.

41. ACKNOWLEDGEMENTS:

The Directors thank the Company's employees, investors and academic partners for their continuous support.

The Directors also thank the Government of India, Governments of various states in India, Governments ofvarious countries
and concerned Government departments and agencies for their co-operation.

Your directors are thankful to the Vendors, Customers, Bankers, and Government together with theirdepartments and the local
authorities, Employees, Stakeholders for their valuable support and co-operation.

For and on behalf of the Board of Directors
Vaishali Pharma Limited

Sd/- Sd/-

Atul Vasani Jagruti Atul Vasani

Chairman & Managing Director Whole-time Director

DIN:- 02107085 DIN: 02107094

Date: 11^th August, 2025
Place: Mumbai