The Board of Directors (hereinafter referred to as "the Board") are pleased to present the 5^th (Fifth) Annual Report of Valiant
Laboratories Limited (hereinafter referred to as "the Company" or "VLL") on the business and operations of the Company together
with the Audited Financial Statements for the financial year ended March 31, 2026 (hereinafter referred to as "year under review").

1. CORPORATE OVERVIEW AND GENERAL INFORMATION

The Company was originally formed as a partnership firm under Indian Partnership Act, 1932, under the name and style of
"M/s. Bharat Chemicals". Subsequently, the partnership firm, M/s. Bharat Chemicals was converted into a public limited
company under the provisions of the Companies Act, 2013, (hereinafter referred to as "the Act") with the name "Valiant
Laboratories Limited" pursuant to certificate of incorporation dated August 16, 2021, issued by Central Registration Centre,
Registrar of Companies.

On October 06, 2023, the Company successfully completed the IPO process, and the equity shares of the Company are listed on
the National Stock Exchange of India Limited ("NSE") and the BSE Limited ("BSE").

2. FINANCIAL HIGHLIGHTS

The Financial Statements for the financial year ended
March 31, 2026 have been prepared in accordance with the
accounting principles generally accepted in India, including
the Indian Accounting Standards (IND AS) specified under
Section 133 of the Companies Act, 2013 ('the Act') read
with the Companies (Indian Accounting Standards) Rules,
2015, as amended.

3. COMPANY'S PERFORMANCE/ STATE OF
AFFAIRS OF THE COMPANY

On a Standalone basis, the Revenue from Operations
for FY 2025-26 was H21,704.25 Lakhs, higher by 62.75%
over the previous year's Revenue from Operations of
H 13,336.18 Lakhs. The profit after tax ("PAT") attributable
to shareholders for FY 2025-26 was H554.82 Lakhs as against
H (215.02) lakhs for FY 2024-25.

On a Consolidated basis, the Revenue from Operations for
FY 2025-26 was H 23,746.75 Lakhs, higher by 78.04% over
the previous year's Revenue from Operations of
H 13,338.20 Lakhs. The profit after tax ("PAT") attributable
to shareholders for FY 2025-26 was H (326.79) Lakhs as
against H (220.12) Lakhs for FY 2024-25.

On a Standalone basis, earning per share stood at
H 1.10(Basic) and H 1.10 (Diluted) in FY 2025-26 as compared to
H (0.50) (Basic) and H (0.50) (Diluted) in FY 2024-25.

On a Consolidated basis, earning per share stood at H (0.65)
(Basic) and H (0.65) (Diluted) in FY 2025-26 as compared to
H (0.51) (Basic) and H (0.51) (Diluted) in FY 2024-25.

4. OPERATIONS/ STATE OF COMPANY'SAFFAIRS

Valiant Laboratories Limited is a pharmaceutical
company focused on manufacturing high-quality Active
Pharmaceutical Ingredients (APIs), with a strong presence
in the Paracetamol API segment. The operations/ state of
the Company's affairs/ nature of business forms part of
the Management Discussion and Analysis Report forming
part of the Annual Report.

5. CHANGE IN NATURE OF BUSINESS

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

6. SHARE CAPITAL

Authorized Share Capital

The Authorized Share Capital of the Company as on March
31, 2026, is H60,00,00,000 (Rupees Sixty Crore Only) divided
into 6,00,00,000 Equity Shares of H 10/- each.

Paid up and subscribed share capital

The paid up and subscribed share capital of the Company as
on March 31, 2026 is H 54,31,25,000 (Rupees Fifty- Four Crore
Thirty-One Lakh Twenty-Five Thousand Only) comprising
of 5,43,12,500 Equity Shares having face value of H10/- each.

Change during the year

Rights Issue

The Board of Directors of the Company, at its meeting held
on July 09, 2025, approved the offer and issuance of equity
shares by way of a Rights Issue for an amount not exceeding
H 8,146.88 Lakhs.

Subsequently, the Rights Issue Committee constituted
by the Board of Directors, in its meeting held on July 15,
2025, approved the Rights Issue of 1,08,62,500 fully paid-
up Equity Shares of face value of H 10/- each for cash at
a price of H 75/- per share (including a premium of H 65/-
per equity share), aggregating up to H 8,146.88 Lakhs, on a
rights basis to the eligible equity shareholders.

The Rights Issue shares were offered in the ratio of 1 (one)
Rights Equity Share for every 4 (four) fully paid-up equity

shares held by eligible shareholders as on the record date,
i.e., July 19, 2025.

The Rights Issue opened on July 28, 2025, and closed on
August 08, 2025. Fractional entitlements were disregarded
while computing the Rights Entitlement.

Upon successful completion on August 13, 2025, the post¬
issue paid-up share capital of the Company stands increased
to H 54,31,25,000/- (Rupees Fifty-Four Crore Thirty-One
Lakh Twenty-Five Thousand Only), comprising 5,43,12,500
Equity Shares of face value of H 10/- each.

7. STATEMENT ON DEVIATION OR VARIATION

In terms of Regulation 32 of the Securities and Exchange
Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (hereinafter referred to as
the "Listing Regulations"), a listed entity is required to report
deviation(s) and variation(s) with respect to funds raised
through a public issue, rights issue or preferential issue.

For IPO:

Post the issue and listing of its equity shares on October
06, 2023, the Company appointed CARE Ratings Limited,
a SEBI registered Monitoring Agency, for monitoring the
utilisation of the proceeds of the Initial Public Offer. The
Monitoring Agency, in its report for the quarter ended
September 30, 2024, confirmed that the Company had fully
utilised the net proceeds of the IPO. There was no deviation
or variation in the utilisation of the IPO proceeds from the
objects stated in the Prospectus.

For Rights Issue:

During the year under review, the Company issued

I, 08,62,500 equity shares of face value of H10/- each at an
issue price of H75/- per equity share (including a premium
of H65/- per equity share), aggregating to H8,146.88 Lakhs,
on a rights basis, in terms of the Letter of Offer dated July
15, 2025. The Rights Equity Shares were allotted on August

II, 2025 and listed on BSE Limited and National Stock
Exchange of India Limited on August 13, 2025.

For monitoring the utilisation of the proceeds of the Rights
Issue, the Company appointed India Ratings and Research
Private Limited, a SEBI registered Monitoring Agency, in
terms of Regulation 82 of the SEBI (Issue of Capital and
Disclosure Requirements) Regulations, 2018.

There has been no deviation or variation in the utilisation
of the Net Proceeds from the objects stated in the Letter
of Offer, and there has been no change in the objects of
the Rights Issue.

Out of the Gross Proceeds of H8146.88 Lakhs, an amount
of H8094.27 Lakhs was deployed during the year under
review. The balance of H52.61 Lakhs, earmarked towards
"Capital Expenditure - Purchase and Installation of new
HVAC" could not be deployed within Fiscal 2025-26
as the installation required a shutdown of the plant at
the manufacturing facility at Tarapur, which had to be
scheduled so as to minimise disruption to production.

The shutdown was accordingly taken in June 2026 and the
installation was completed during that period. Pending
deployment, the said amount was held in fixed deposits
with the Company's bankers, and the interest earned
thereon was also applied towards the same object.

In terms of the Letter of Offer, which provided for
utilisation in the next fiscal year in such an event, the Board
determined that the said amount be deployed in Fiscal 2026¬
27 towards the same object. The amount has since been fully
deployed in June 2026, and the Monitoring Agency, in its
report for the quarter ended June 30, 2026, has confirmed
full utilisation of the net proceeds of the Rights Issue.

9. DIVIDEND

With a view to conserve resources for expansion of business,
the Directors of the Company have considered it prudent
not to recommend any dividend for the year under review.

The Company has formulated a Dividend Distribution
Policy in accordance with Regulation 43A of the Listing
Regulations and the same is available on the Company's
website at www.valiantlabs.in.

10. TRANSFER TO RESERVES

During the year under review the Company has not
transferred any amount of profit to the reserves.

11. DETAILS OF HOLDING/ SUBSIDIARY/

ASSOCIATE/ JOINT VENTURE COMPANIES

As on March 31, 2026, the Company has 1 (One) wholly
owned subsidiary, namely Valiant Advanced Sciences
Private Limited (VASPL).

In accordance with the provisions of the Act, read with the
Listing Regulations and the relevant Indian Accounting
Standards ("Ind AS"), the Board of Directors at its meeting
held on May 14, 2026, approved the audited standalone and
consolidated financial statements for the year ended March
31, 2026, which forms an integral part of this Annual Report.

Pursuant to the provisions of Section 136 of the Act, the
financial statements of the Company, consolidated financial
statements and separate audited financial statements in
respect of subsidiary company are available on the website
of the Company at www.valiantlabs.in. The same shall
also be sent to the shareholders electronically who request
for the same by sending e-mail to Company at investor@
valiantlabs.in from their registered e-mail address.

A statement in Form AOC-1 as required under Section 129
(3) of the Act, containing salient features of the financial
statements of the subsidiary company is forming part of
this Report in Annexure- I.

12. MATERIAL SUBSIDIARY

In line with the provisions of Regulation 16(1)(c) of the
Listing Regulations, VASPL falls under the purview of
a material subsidiary of the Company for FY 2025-26
and, based on the audited accounts for FY 2025-26, will
continue to be a material subsidiary for FY 2026-27. The
Board of Directors of the Company has approved a Policy
for determining material subsidiaries which is in line with
the requirements of Listing Regulations. The said Policy is
available on the Company's website at www.valiantlabs.in.

13. RELATED PARTY TRANSACTIONS

The Company has formulated a policy on the Related Party
Transactions and the same is available on the Company's
website at www.valiantlabs.in.

All the related party transactions are placed before the
Audit Committee for their review and approval. Omnibus
approval is obtained for the transactions which are repetitive
in nature and for the transactions which are not foreseen
(subject to financial limit). A statement of all related party
transactions is presented before the Audit Committee on
a quarterly basis specifying the nature, value and terms &
conditions of the transactions.

All transactions entered with related parties during
the Financial Year 2025-26 were in compliance with the
applicable provisions of the Act, read with the relevant
rules made thereunder, the Listing Regulations and the
Company's policy on related party transactions.

Further, particulars of contracts/arrangements entered
into by the Company with related parties referred to in
sub-section (1) of Section 188 of the Act, which were not at
arm's length basis or which were material transactions on
an arm's length basis, as specified under the provisions of
Section 134(3)(h) of the Act and Rule 8(2) of the Companies
(Accounts) Rules, 2014, are disclosed in Form AOC-2,
forming part of this report as Annexure-II.

14. EXTRACT OF ANNUAL RETURN

The Annual Return of the Company as on March 31,
2026, in Form MGT-7 in accordance with the provisions
of Section 92(3) and Section 134 (3) (a) of the Act and Rule
12 of the Companies (Management and Administration)
Rules, 2014, is available on the Company's website at www.
valiantlabs.in.

15. PARTICULARS OF CONSERVATION OF
ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND
OUTGO

Information pursuant to Section 134(3) (m) of the Act read
with Rule 8(3) of the Companies (Accounts) Rules, 2014 is
forming part of this report as Annexure- III.

16. PARTICULARS OF DEPOSITS

The Company has not accepted any deposits within the
meaning of Sections 73 of the Act, read with Rule 2(c)
of the Companies (Acceptance of Deposits) Rules, 2014
(including any statutory modifications or re-enactments
for the time being in force). Accordingly, there were no
deposits outstanding as on March 31, 2026. Therefore, the
requirement to disclose details of deposits which are not
in compliance with Chapter V of the Act is not applicable
to the Company.

17. LOANS, GUARANTEES AND INVESTMENTS

Pursuant to Section 186 of the Act and Schedule V of the
Listing Regulations, disclosure on particulars relating
to Loans, Advances, Guarantees and Investments are
provided as part of the financial statements.

18. BOARD OF DIRECTORS & KEY MANAGERIAL
PERSONNEL

As on March 31, 2026, the Company has 7 (Seven) Directors
with an optimum combination of Executive and Non¬
Executive Directors including 1 (One) Independent Woman
Director. The Board comprises of 5 (Five) Non-Executive
Directors, out of which 3 (Three) are Independent Directors.
During the year under review, the Board met 6 (Six) times
on May 20, 2025, July 09, 2025, August 08, 2025, November
11, 2025, February 11, 2026 and March 07, 2026.

During the year under review, the Non-Executive
Directors of the Company had no pecuniary relationship
or transactions with the Company, other than sitting fees,
commission and reimbursement of expenses, if any.

Retirement by Rotation

In accordance with the provisions of Section 152 of the Act,
read with provisions contained in the Articles of Association
of the Company, Mr. Sandeep Gupta (DIN:09245060) shall
be liable to retire by rotation at the ensuing Annual General
Meeting ("AGM") of the Company and, being eligible,
offers himself for re-appointment. The Nomination and
Remuneration Committee and the Board has recommended
his re-appointment.

Pursuant to Regulation 36 of the Listing Regulations read
with Secretarial Standards- II on General Meetings necessary
details of Directors appointed on the Board of the Company
are provided in Annexure- VII to the notice of the AGM.

Appointments and Resignations

Appointments

During the year under review, the following changes took
place in the composition of the Board of Directors and Key
Managerial Personnel of the Company:

Mr. Akshay Gangurde (ACS: 70561) was appointed
as the Company Secretary, Compliance Officer, and
Key Managerial Personnel of the Company with effect
from July 09, 2025.

Further, the Board of Directors and its Committees, at their
respective meeting(s) held on August 10, 2026, approved
reappointment of:

• Mr. Santosh Vora (DIN:07633923), Managing director
of the Company for a further term of five (5) years, with
effect from February 06, 2027 subject to the approval of
members at the ensuing Annual General Meeting.

• Ms. Sonal Vira (DIN:09505883), Independent
Director of the Company for a second term of five (5)
consecutive years, with effect from February 16, 2027
subject to the approval of members at the ensuing
Annual General Meeting.

In this regard, the requisite details of Mr. Santosh Vora
and Ms. Sonal Vira, pursuant to Regulation 36 of the
Listing Regulations, read with Secretarial Standard-2 on
General Meetings, are provided in Annexure VII to the
Notice of the AGM.

The Company has received the requisite declarations
from Ms. Sonal Vira confirming that she meets the criteria
of independence as prescribed under the Act and the
Listing Regulations.

Resignations

Ms. Prajakta Patil (ACS: 53370) resigned from the position
of Company Secretary & Compliance Officer with effect
from June 15, 2025, to pursue alternate career opportunity.

Director(s) Disclosure

Based on the declarations and confirmations received from
the Directors, none of the Directors of the Company are
disqualified from being appointed/ continuing as Directors
of the Company.

A certificate of non - disqualification of directors obtained
from M/s. Mehta & Mehta is provided as Annexure II to
the Report on Corporate Governance.

Independent Directors' Declaration

The Company has received the necessary declaration
from each Independent Director stating that they meet the
criteria of independence as laid out in Section 149(6) and
149(7) of the Act and Regulation 16(1)(b) and 25(8) of the
Listing Regulations. The Company has also received from
them declaration of compliance of Rule 6 (1) & (2) of the
Companies (Appointment and Qualifications of Directors)
Rules, 2014, regarding online registration with the "Indian
Institute of Corporate Affairs" at Manesar, for inclusion of
name in the data bank of Independent Directors.

Familiarisation Programme

The Company has conducted Familiarisation programmes
for the Independent Directors of the Company covering
the matters a specified in Regulation 25(7) of the Listing
Regulations. The details of the training and familiarisation
programmes conducted by the Company are hosted on the
Company's website at www.valiantlabs.in.

Annual Evaluation of Directors, Committees and
Board

Pursuant to the provisions of the Act and as per the
Listing Regulations, the Board of Directors carried out
annual performance evaluation of its own performance,
the directors individually as well as the working of
its committees.

The performance of the Board as a whole and of its
committees was evaluated by the Board through
structured questionnaire which covered various aspects
such as the composition and quality, meetings and
procedures, contribution to Board processes, effectiveness
of the functions allocated, relationship with management,
professional development, adequacy, appropriateness and
timeliness of information etc.

Taking into consideration the responses received from the
Individual Directors to the questionnaire, performance of
the Board and its Committees was evaluated. The Directors
expressed their satisfaction with the evaluation process.

In terms of requirements of Schedule IV of the Companies
Act, 2013 and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, 1 (One) meeting of
the Independent Directors was held on February 11,
2026 to review:

(i) The performance of non-independent directors and
the Board as a whole and its committees thereof;

(ii) The performance of the Chairperson of the Company,
taking into account the views of executive directors
and non- executive directors;

(iii) To assess the quality, quantity and timeliness
of the flow of information between the
Management and the Board.

Performance evaluation of Independent Directors was done
by the entire Board, excluding the Independent Director
being evaluated.

Statement regarding opinion of the Board with regard
to integrity, expertise and experience (including the
proficiency) of the Independent Directors appointed
during the year:

With regard to integrity, expertise and experience
(including the proficiency) of the Independent Directors
appointed during the year under review, the Board of
Directors have taken on record the declarations and
confirmations submitted by the Independent Directors and
is of the opinion that each Independent Director is a person
of integrity and possesses relevant expertise and experience
and his/her continued association as Director will be of
immense benefit and in the best interest of the Company.

Regarding proficiency of the Independent Directors,
ascertained from the online proficiency self-assessment test
conducted by the institute, as notified under sub-section
(1) of section 150 of the Act, the Board of Directors have
taken on record the information submitted by Independent
Director that he/she has complied with the applicable laws.

Key Managerial Personnel

In accordance with the provisions of Sections 2(51) and
203 of the Act, read with the Companies (Appointment
and Remuneration of Managerial Personnel) Rules,
2014, the following are the Key Managerial Personnel
of the Company:

(i) Mr. Santosh Vora, Managing Director;

(ii) Mr. Paresh Shah, Whole-Time Director & Chief
Financial Officer;

(iii) Mr. Akshay Gangurde, Company Secretary &
Compliance Officer (appointed w.e.f. July 09, 2025);

(iv) Ms. Prajakta Patil, Company Secretary & Compliance
Officer (resigned w.e.f. June 15, 2025)

19. COMMITTEES OF THE BOARD

The Company has constituted various Board level
committees in accordance with the requirements of the Act
and the Listing Regulations. The Board has the following
committees as under:

• Audit Committee

• Nomination and Remuneration Committee

• Stakeholders' Relationship Committee

• Risk Management Committee

• Corporate Social Responsibility Committee

• Rights Issue Committee (dissolved on
November 11, 2025)

• Restructuring Committee (w.e.f. March 07, 2026)

Details of the Statutory Committees along with composition
and meetings held during the year under review are
provided in the Corporate Governance Report forming part
of this Report.

20. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(3) and 134(5) of the Act, Directors of
the Company confirm 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. the Directors have selected appropriate 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 at the end of the financial
year and of the profit and loss of the company
for that period;

c. the Directors have 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 annual accounts have been prepared on a
going concern basis;

e. the Directors have laid down proper internal financial
controls to be followed by the company and that
such internal financial controls are adequate and are
operating effectively; and

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

21. INTERNAL FINANCIAL CONTROLS
WITH REFERENCE TO THE FINANCIAL
STATEMENTS

Internal Financial Controls are an integral part of the risk
management process which in turn is a part of Corporate
Governance addressing financial and financial reporting
risks. The Internal Financial Controls have been documented
and embedded in the business processes. The Company's
approach on Corporate Governance has been detailed in the
Corporate Governance Report. The Company has deployed
the principles enunciated therein to ensure adequacy of
Internal Financial Controls with reference to:

• Effectiveness and efficiency of operations

• Reliability of financial reporting

• Compliance with applicable laws and regulations

• Prevention and detection of frauds

• Safeguarding of assets

The Company has defined policies and standard operating
procedures for all key business processes to guide business
operations in an ethical and compliant manner. Compliance
of these policies is ensured through periodic self-assessment
as well as internal and statutory audits. The Company has
robust systems which are an integral part of internal control
framework. The Company continues to constantly leverage
technology in enhancing the internal controls.

The Audit Committee of the Board reviews the internal
processes, systems and the internal financial controls
and accordingly, the Directors' Responsibility Statement
contains a confirmation as regards adequacy of the
internal financial controls. Assurances on the effectiveness
of Internal Financial Controls is obtained through
management reviews, self-assessment, continuous
monitoring by functional heads as well as testing of the
internal financial control systems by the internal auditors
during the course of their audits. The Company believes
that these systems provide reasonable assurance that the
internal financial controls are designed effectively and are
operating as intended.

The Statutory Auditor's Reports on Internal Financial
Controls as required under Clause (i) of sub-section 3 of
Section 143 of the Act is annexed with the Independent
Auditors' Report.

In the opinion of the Board, there are no elements of risk
identified which may threaten the existence of the Company.

22. VIGIL MECHANISM/ WHISTLE BLOWER
POLICY

Pursuant to the provisions of Section 177(9) of the Act read
with Rule 7 of the Companies (Meetings of Board and its
Powers) Rules, 2014, and in accordance with Regulation 22
of the Listing Regulations, the Company had adopted 'Vigil
Mechanism/ Whistle Blower Policy' for Directors, Employees
and other Stakeholders of the Company to report concerns
about unethical behaviour. The policy provides a mechanism,
which ensures adequate safeguards to Employees, Directors

and other stakeholders from any victimisation on raising
concerns of any violations of legal or regulatory requirements,
incorrect or misrepresentation of any, financial statements
and reports, and so on. The employees of the Company have
the right/option to report their concern/grievance to the
Chairman of the Audit Committee.

During the year under review, the Company has not
received any complaints.

The Company is committed to adhere to the highest
standards of ethical, moral and legal conduct of business
operations. The Vigil Mechanism/ Whistle Blower Policy is
available on the Company's website at www.valiantlabs.in.

23. RISK MANAGEMENT

For the Company, Risk Management is an integral and
important aspect of Corporate Governance. The Company
believes that a robust Risk Management Framework
ensures adequate controls and monitoring mechanisms
for smooth and efficient running of the business. A
risk- aware organization is better equipped to maximize
shareholder value.

The risk management objectives of the company are: -

• To safeguard the Company's and its subsidiaries'
property & interest of all stakeholders.

• To protect and enhance the corporate governance.

• To manage risks within a framework & consistently
achieve desired outcomes.

• To implement a process to identify potential /
emerging risks.

• To implement appropriate risk management initiatives,
controls, incident monitoring, reviews and continuous
improvement initiatives.

• To minimize undesirable outcomes arising out of
potential risks.

• To align and integrate views of risk across the enterprise.

To ensure protection of shareholder value through the
establishment of an integrated Risk Management Framework
for identifying, assessing, mitigating, monitoring,
evaluating and reporting of all risks and to continually
strive towards strengthening the Risk Management
System through continuous learning and improvement,
the company, in accordance with the provisions of the Act
and Listing Regulations, has formulated a risk management
policy which is available on the website of the company at
www.valiantlabs.in.

Risk management process: -

The Company's Risk Management Process encompasses
the following steps:

24. CORPORATE SOCIAL RESPONSIBILITY

As the Company does not fall under any of the threshold
limits given under the provisions of Section 135 of the
Act, the compliances under CSR are not applicable
to the Company.

The Company's CSR Policy has been uploaded on
Company's website at www.valiantlabs.in.

The brief terms of reference, particulars of meetings
held and attendance thereat are mentioned in the
Corporate Governance Report forming an integral part of
this Annual Report.

25. NOMINATION AND REMUNERATION
POLICY

In compliance with the requirements of Act and Rules
made thereunder, the Company has framed a Nomination
and Remuneration Policy for its Directors, Key Managerial
Personnel, Functional Heads and other employees
of the Company.

Salient Features of the Nomination & Remuneration
Policy

• Establishes criteria for appointment, re-appointment
and removal of Directors, Key Managerial Personnel
(KMPs) and Senior Management Personnel.

• Prescribes qualifications, competencies, experience,
integrity and independence requirements
for appointment to the Board and senior
leadership positions.

• Provides for succession planning and promotes Board
diversity in terms of gender, experience, knowledge
and perspective.

• Lays down a framework for performance evaluation of
Directors, KMPs and Senior Management Personnel.

• Ensures that remuneration is fair, competitive,
performance-linked and aligned with the Company's
long-term objectives and business strategy.

• Remuneration structure comprises fixed pay,
performance-linked incentives, stock options, long¬
term incentives, retirement benefits and other
perquisites, as applicable.

• The Nomination and Remuneration Committee
reviews and recommends remuneration policies,
Board composition and leadership succession
matters to the Board.

• Provides for periodic review of compensation
levels with reference to industry benchmarks and
organizational performance.

• Ensures compliance with the Companies Act,
2013 and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

The policy is available on the website of the Company at
www.valiantlabs.in

26. DISCLOSURES UNDER SEXUAL

HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION & REDRESSAL)
ACT 2013

In compliance with the provisions of the Sexual Harassment
of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013, ("POSH Act") and Rules framed
thereunder, the Company has formulated and implemented
a policy on prevention, prohibition and redressal of
complaints related to sexual harassment of women
at the workplace.

The Company is committed to providing a safe and
conducive work environment to all its employees and
associates. All women employees whether permanent,
temporary or contractual are covered under the above
policy. The said policy is available on the website of the
Company for information of all employees at www.
valiantlabs.in. An Internal Complaints Committee has been
set up in compliance with the POSH Act.

Details of complaints received during the year under review
under POSH Act are as under:

a. Number of complaints filed during the
financial year: NIL.

b. Number of complaints disposed of during the
financial year: NIL.

c. Number of complaints pending as on end of the
financial year: NIL.

27. COMPLIANCE WITH PROVISIONS OF
MATERNITY BENEFIT ACT, 1961

Your Company has complied with the provisions of
Maternity Benefit Act, 1961.

28. REMUNERATION OF DIRECTORS AND
EMPLOYEES

Disclosure comprising particulars with respect to the
remuneration of directors and employees, as required to
be disclosed in terms of the provisions of Section 197(12)
of the Act and Rule 5(1) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014
(Appointment and Remuneration Rules, 2014) is given as
Annexure - IV forming part of this report.

Further, for the details of employee remuneration as
required under provisions of Section 197 of the Act read
with Rule 5(2) & 5(3) of Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, the
members may write to the Company Secretary in this
regard at investor@valiantlabs.in

Remuneration / Commission drawn from Holding /
Subsidiary Company:

None of the Directors of the Company have drawn any
remuneration/commission from the Company's Holding
Company/ Subsidiary Companies.

29. BUSINESS RESPONSIBILITY &SUSTAINABILITY REPORTING (BRSR)

The Listing Regulations stipulate that the top 1000 listed
companies by market capitalization must include a
Business Responsibility & Sustainability Report (BRSR)
in their Annual Report. This requirement aims to
enhance transparency and accountability regarding the
environmental, social and governance (ESG) practices of
these companies. However, the Company is not ranked
among the top 1000 listed entities for the FY 2025-26.
Consequently, the company is not required to include the
BRSR in the Annual Report for this period. However, the
Company as a good governance practice has disclosed
certain EHS related initiatives taken by the Company which
can be referred to under the title Environment, Health and
Safety (EHS) in clause 30 of this Report.

30. ENVIRONMENT, HEALTH AND SAFETY (EHS)

The Company recognizes the pivotal role of EHS in shaping
the operations and upholding commitment to sustainability
and responsible corporate citizenship. This encapsulates
the key EHS highlights during the year under review,
underscoring the company's dedication to fostering a culture
of excellence in environmental stewardship, employee well¬
being, and safety across the chemical industry.

As part of our continued commitment to sustainability,
employee well-being, and regulatory compliance, Valiant
Laboratories Limited has taken several key initiatives under
the Environment, Health, and Safety (EHS) program during
the Financial Year 2025-26:

1. Environment

a) Process Containment and Environmental
Safeguards

• All pipelines connected to the Acetic
Anhydride storage tank were fitted with
flange covers/guards, strengthening
containment and reducing the risk of leaks.

• Carbon separation was relocated to
a dedicated, fully covered enclosure,
improving containment and ambient air
quality around the operation.

• The arrangement of old and active pipelines
across the facility was streamlined to
prevent incorrect connections and improve
overall process safety.

• The temporary shed was replaced with
a permanent structure to provide better
structural safety, weather protection and
long-term operational reliability.

b) Waste Management

Waste segregation practices were followed
across the facility, with hazardous waste and
e-waste disposed of through authorized vendors
in accordance with applicable regulations.

c) Energy and Water Conservation

The Company continued its energy and water
conservation initiatives during the year,
including arrangements to ensure continuous
availability of drinking water for the workforce
during interruptions to the regular water supply.

d) Environmental Awareness and Green Belt
Development

50 trees were planted in the green belt and
garden areas in and around the facility during
the year, reinforcing the Company's commitment
to long-term ecological balance.

2. Health

a) Occupational Health Centre (OHC)

• The Occupational Health Centre maintained
first-aid boxes and stretchers during the
year, with personnels trained in first aid by
an authorized first-aid trainer.

• Periodic health check-ups were conducted,
first-aid facilities and health records
were maintained and kept updated, and
no occupational illness was reported
during the year.

• Specialized external training, including CPR
training, was conducted for employees.

b) Employee Welfare

The Company ensured continuous availability
of drinking water for the workforce, including
arrangements to safeguard hydration and
welfare of contract labour during interruptions
to the water supply.

3. Safety

a) Workplace Safety Training

• Structured monthly safety training was
conducted in line with the Safety Training
Calendar, covering topics including
Material Handling & MSDS, First Aid,
PPE usage and health hygiene, general
workplace safety, and fire extinguisher use.

• External training sessions, including on fire
extinguisher and fire hydrant systems, were
conducted by qualified external trainers.

• Regular toolbox talks were conducted
across departments - Production,
Maintenance, Stores and Quality Control -
reinforcing day-to-day safety awareness on
the shop floor.

• Gate safety checks were conducted
every month.

b) Work Permit System

A structured work permit system continued to govern
General, Height, Hot, Confined Space, Hazardous and
Electrical work, ensuring controlled execution of high-
risk activities across the facility.

c) Incident and Accident Performance

The Company maintained Zero Lost Time Injury (LTI)
and Zero Medical Treatment Case (MTC) during the
year, with no fatal accidents reported.

Near-miss incidents and unsafe acts/conditions
continued to be proactively reported and tracked,
with corrective and preventive actions implemented
in each instance.

d) Emergency Preparedness

Mock drills were conducted during the year, including
a plant-wide emergency drill and a dedicated mock
drill on electric shock emergency response covering
safe rescue techniques, power isolation and first-aid
procedures. Reports of the drills conducted were
submitted to the Directorate of Industrial Safety
and Health (DISH).

e) Safety Week

Safety Week was celebrated with full participation
from employees and contract workers, comprising fire
hydrant training, fire extinguisher training, and poster,
PPE, slogan and quiz competitions, to strengthen the
Company's overall safety culture.

f) Housekeeping

A facility-wide cleaning drive was carried out jointly
by staff and contract workers to improve overall
premises hygiene.

Valiant Laboratories Limited continues to prioritize
EHS as an integral part of its operational ethos, striving
to build a resilient, sustainable, and safe workplace for
all stakeholders.

31. EMPLOYEES STOCK OPTION PLAN (ESOP)

The Nomination and Remuneration Committee and the
Board of Directors, at their respective meetings held on
January 4, 2023, approved the "Valiant Laboratories -
Employees Stock Option Plan - 2023" ("the Plan") and
the grant of Employee Stock Options to employees of the
Company's subsidiary under the Plan.

The Plan, together with the proposed grant of stock options
to employees of the subsidiary company, was subsequently
approved by the shareholders of the Company at their
meeting held on January 20, 2023.

The Plan was approved prior to the Initial Public Offering
("IPO") of the Company, i.e., at a time when the equity shares
of the Company were not listed on any recognised stock
exchange. Pursuant to the listing of the Company's equity
shares, the Plan has not been listed on the Stock Exchanges
in terms of the SEBI (Share Based Employee Benefits and
Sweat Equity) Regulations, 2021, and as on the date of this

Report, no stock options have been granted under the Plan.
The Company will make appropriate disclosures in terms
of the applicable regulations at the time of any future grant
under the Plan.

32. REPORT ON MANAGEMENT DISCUSSION
AND ANALYSIS

The Report on Management Discussion and Analysis,
pursuant to the provisions of Regulation 34 read with Part
B of Schedule V of Listing Regulations on the operations of
the Company, as required under the Listing Regulations is
provided in a separate section and forms an integral part of
this Annual Report.

33. REPORT ON CORPORATE GOVERNANCE

The Report on Corporate Governance, pursuant to the
provisions of Regulation 34 read with Part C of Schedule
V of Listing Regulations on the operations of the Company,
as required under the Listing Regulations forms an integral
part of this Annual Report.

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

During the year under review, the Company received an
Adjudication Order dated December 26, 2025 from the
Office of the Assistant Commissioner of CGST & Central
Excise, Division-IV, Navi Mumbai Commissionerate,
in relation to alleged wrongful availment of Input Tax
Credit (ITC) on capital goods for FY 2021-22 on account of
depreciation claimed on the GST component of such capital
goods. The adjudicating authority confirmed the demand
towards alleged wrongful availment of ITC amounting to
approximately H 57.25 lakhs. The Company has filed an
appeal before the Appellate Authority on March 09, 2026.

Further, the Company received an Adjudication Order dated
May 29, 2026, from the Office of the Joint Commissioner,
CGST & C. Ex., Navi Mumbai Commissionerate, in relation
to alleged non-payment of GST on a corporate guarantee
provided to a related party during the FY 2023-24. The
adjudicating authority confirmed a GST demand of H 18
Lakhs on the Corporate Guarantee, along with an equal
penalty of H 18 Lakhs and interest under Section 50(1) of
the CGST Act, 2017 and the corresponding provisions of
the SGST Act, 2017. The Company is evaluating all options,
including filing an appeal against the order before the
appropriate authority.

Further, the Ministry of Corporate Affairs, through the
Registrar of Companies, Maharashtra, vide adjudication
order dated August 11, 2025, imposed a penalty of H3,45,000
on the Company and H1,08,000 each on the Managing
Director, Chief Financial Officer and erstwhile Company
Secretary under Section 90(11) of the Companies Act,
2013 read with Rule 4 of the Companies (Significant
Beneficial Owners) Rules, 2018 for non-filing of e-Form
BEN-2. The Company has paid the penalty imposed under
the said order.

The Company does not expect these above matters to have
a material impact on its financial position or operations.

Except for the above, no material orders were passed by
any regulators, courts, or tribunals during the year which
could impact the Company's going concern status or its
future operations.

However, Members' attention is invited to the statement
on contingent liabilities provided in the notes to the
Financial Statements.

35. MATERIAL CHANGES AND COMMITMENTS,
IF ANY, AFFECTING THE FINANCIAL
POSITION OF THE COMPANY WHICH
OCCURRED BETWEEN THE END OF THE
FINANCIAL YEAR OF THE COMPANY AND
THE DATE OF THE REPORT

There were no material changes or commitments affecting the
financial position of the Company that occurred between the
end of the financial year and the date of this Report except that
the Board of Directors, at its meeting held on May 16, 2026,
approved the evaluation of potential restructuring options
involving the Company, its holding company, subsidiaries and
associates, with a view to achieving operational efficiencies,
organizational alignment and strategic synergies. As on the
date of this Report, no definitive decision has been taken and
the evaluation process remains ongoing.

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

During the year under review, there was no application
made and proceeding initiated/ pending by any Financial
and/or Operational Creditors against your Company under
the Insolvency and Bankruptcy Code, 2016 ("the Code").
Further, there is no application or proceeding pending
against your Company under the Code.

37. ONE-TIME SETTLEMENT WITH ANY BANK
OR FINANCIAL INSTITUTION

During the year under review, there was no instance of one¬
time settlement with any bank or financial institution.

38. TRANSFER OF UNPAID/UNCLAIMED
DIVIDEND TO INVESTOR EDUCATION AND
PROTECTION FUND (IEPF)

During the year under review, there was no requirement of
transferring any unpaid/unclaimed dividend to IEPF.

39. AUDITORS AND REPORT OF THE AUDITORS

Statutory Auditor

As per the provisions of Section 139 and 141 of the Act
and rules made thereunder, the Company at its 3^rd Annual
General Meeting("AGM") held on August 08, 2024,
approved the appointment of M/s. Raman S. Shah & Co.,

Chartered Accountants (FRN:111919W) as Statutory
Auditor for a period of 5 years commencing from the
conclusion of (3^rd AGM) till the conclusion of the (8^th AGM)
to be held in the year of 2028-29.

The Report of the Auditors is provided in a separate
section and forms an integral part of this Annual Report.
The Statutory Auditor's report does not contain any
qualification, reservation or adverse remark for the
year under review.

During the year under review, there were no instances of
fraud which requires the Statutory Auditors to report the
same to the Central Government under Section 143(12) of
the Act and rules framed thereunder.

Cost Auditor

As per the requirements of the Section 148 of the Act read
with the Companies (Cost Records and Audit) Rules, 2014
as amended from time to time, the Company is required
to maintain cost records and accordingly, such accounts
are prepared and records have been maintained relating to
Drugs and Pharmaceuticals division.

The Board of Directors at their meeting held on May 14,
2026, on the recommendation of Audit Committee, has re¬
appointed M/s. Ketki D. Visariya & Co., Cost Accountants,
(Firm Registration Number: 000362) as the Cost Auditor of
the Company to audit the cost accounts of the Company's
Drugs and Pharmaceuticals Division for the FY 2026-27.

As required under the Act, a resolution seeking member's
ratification for the remuneration payable to the Cost
Auditor forms part of the Notice convening the Annual
General Meeting.

Secretarial Auditor

As per the provisions of Section 204 of the Act and rules
made thereunder, the Company at its 4^th Annual General
Meeting("AGM") held on September 25, 2025, approved the
appointment of M/s Mehta & Mehta, Practicing Company
Secretaries (ICSI Firm Registration No. P1996MH007500)
as the Secretarial Auditor of the Company for a term of 5
(five) consecutive years, commencing from FY 2025-26 to
the FY 2029-30.

The Secretarial Audit Report (MR-3) issued by M/s Mehta
& Mehta, Practicing Company Secretaries is forming part of
this report as Annexure- V.

Further, pursuant to Regulation 24A of Listing Regulations
read with SEBI Master Circular No. SEBI/HO/CFD/
PoD2/CIR/P/0155 dated November 11, 2024; the Annual
Secretarial Compliance Report of the Company, issued
by M/s Mehta & Mehta, Practicing Company Secretaries,
is also available on the website of the Company at www.
valiantlabs.in.

The Secretarial Audit Report and Annual Secretarial
Compliance Report for FY 2025-26 do not contain any
qualification, reservation or adverse remark. However, the
Reports contain the following observation.

During the period under review, the Company has complied with
the provisions of the Act, Rules, Regulations, Guidelines and
Standards mentioned above, except for delay in prior intimation
of the Rights Issue Committee Meeting held on July 15, 2025,
under Regulation 29(1)(d) read with Regulation 29(2) of SEBI
(LODR) Regulations, 2015, for which notices were received from
BSE Limited and National Stock Exchange of India Limited and
the applicable fine was paid by the Company.

Management/Board Response: The non-compliance was not
deliberate and arose due to scheduling constraints, as the Rights
Issue Committee meeting was held only after receipt of the in¬
principle approvals from the Stock Exchanges. The Company
acted in good faith and paid the fine of H 11,800 each (inclusive of
GST) imposed by BSE and NSE on 20 August 2025 within the
prescribed timelines.

Further, pursuant to Regulation 24A of the Listing
Regulations, the Secretarial Audit of the Unlisted Indian
Material Subsidiaries of the Company identified in terms
of Regulation 16(1)(c) of the Listing Regulations viz.
Valiant Advanced Sciences Private Limited ('VASPL') was
conducted by M/s Mehta & Mehta, Practicing Company
Secretaries. The Secretarial Audit Report of VASPL is
annexed to this Report as Annexure V-A.

40. SECRETARIAL STANDARDS

During the year under review, the Company has complied
with all the applicable Secretarial Standards issued by the
Institute of Company Secretaries of India and approved by
the Central Government pursuant to Section 118 of the Act.

41. ACKNOWLEDGEMENT

The Board of directors takes this opportunity to thank
Company's employees at all levels for their hard work and
commitment. The Directors would like to express their
grateful appreciation for the assistance and support received
from the Shareholders, Government Authorities, Auditors,
Financial Institutions, Customers, Employees, Suppliers,
other business associates and various other stakeholders.
The Board looks forward for continued support of all these
partners in the future.

For and on behalf of the Board

Sd/- Sd/-

Santosh Vora Paresh Shah

Managing Director Whole-Time Director &

Place: Mumbai DIN: 07633923 Chief Financial Officer

Date: August 10, 2026 DIN: 08291953