DIRECTORS' REPORT

The Directors have pleasure to present their 39^th Board's Report on the business and operations of the Company
and the Audited Financial Statements for the year ended March 31, 2026.

Financial Results

The Company's standalone and consolidated financial performance for the year ended March 31, 2026, is summarized
below:

Dividend

For the Financial Year 2025-26, the Board of Directors
has recommended a dividend of '1.25/- per Ordinary
Equity Share of face value ' 5/- each i.e., 25%, consistent
with the dividend declared for the previous financial
year. The proposed dividend has been determined in
accordance with the parameters specified under the
Company's Dividend Distribution Policy and shall be
paid out of the profits for the year, subject to approval of
the shareholders at the ensuing Annual General Meeting
(“AGM”).

In compliance with Regulation 43A of the Securities
and Exchange Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2015 (“SEBI
Listing Regulations”), the Company has in place a
Dividend Distribution Policy, which outlines the guiding
principles for declaration of dividend. The said policy
is available on the Company's website and can be
accessed at:https://www.20microns.com/corporate-
governance-policies-codes.

Transfer to Reserves

During the year under review, the Company has not
transferred any amount to the General Reserve.

The details of movement in other reserves and surplus
during the financial year ended March 31, 2026, are

provided in the ‘Statement of Changes in Equity' forming
part of the Standalone and Consolidated Financial
Statements included in this Annual Report.

State of Company’s Affairs

During the year under consideration, following financial
developments have taken place -

a) Consolidated Results

On a consolidated basis, the Revenue from
Operations for the Financial Year 2025-26 stood
at '95,383.26 lakhs as compared to '91,278.52
lakhs in the previous financial year, registering a
year-on-year growth of 4.50%. Earnings Before
Interest, Tax, Depreciation and Amortisation
(EBITDA) for the year stood at '12,308.61 lakhs, as
against '11,738.79 lakhs in FY 2024-25, reflecting
an increase of 4.85%.

The consolidated performance was supported by
sustained demand for the Company's products,
improved operational efficiencies and continued
growth momentum in the minerals and specialty
chemicals segments. The favourable business
environment, supported by positive economic
indicators and strong industry fundamentals, further
contributed to the Company's performance during
the year under review.

Profit Before Tax, before exceptional items, stood
at '9,167.48 lakhs in FY 2025-26 as compared
to '8,472.93 lakhs in the previous financial year.
During the year, the Company recognised an
exceptional item of '39.90 lakhs towards a one¬
time labour claim settlement in respect of a matter
before the Labour Court, as against '203.50 lakhs
recognised in the previous financial year.

Profit After Tax from continuing operations stood
at '6,667.00 lakhs in FY 2025-26 as compared to
'6,248.47 lakhs in FY 2024-25, registering a year-
on-year increase of 6.70%.

b) Standalone Results

On a standalone basis, the Revenue from Operations
for FY 2025-26 stood at '82,403.69 lakhs as
compared to '79,491.98 lakhs in the previous
financial year, reflecting a year-on-year growth
of 3.66%. EBITDA, before other income, stood at
'10,316.78 lakhs as against '9,735.52 lakhs in FY
2024-25, representing an increase of 5.97%.

The standalone performance was primarily
attributable to sustained demand across product
segments, improved capacity utilisation and the
favourable market outlook for minerals and specialty
chemicals. Continued macroeconomic resilience and
strong sectoral fundamentals further supported the
Company's performance during the year.

Profit Before Tax, before exceptional items, stood
at '8,157.86 lakhs in FY 2025-26 as compared to
' 7,573.17 lakhs in the previous financial year.

Profit After Tax from continuing operations stood
at '6,023.06 lakhs in FY 2025-26 as compared
to ' 5,635.98 lakhs in the previous financial year,
registering a year-on-year increase of 6.87%.

Investors Education and Protection Fund

Pursuant to Sections 124 and 125 of the Companies Act,
2013 and the Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer and Refund) Rules,
2016, the Company has complied with all applicable
statutory requirements during the year under review.

Disclosures for FY 2025-26

The cumulative unpaid/unclaimed dividend amount lying
in the Company's unpaid dividend accounts as on March
31, 2026, aggregates to Rs. 3,63,985.45.

Compliance & Access to Information:

The Company has uploaded the statement of unpaid/
unclaimed amounts as on March 31, 2026, in compliance
with the IEPF (Uploading of Information) Rules, 2012.

The information is accessible on the Company's website at:
https://www.20microns.com/unpaid-dividend-deposit

Shareholder Action:

Members who have not claimed their dividends are
requested to do so at the earliest by contacting:

Company Secretary & Nodal Officer:

Ms. Komal Pandey

co_ secretary@20microns.com

Cameo Corporate Services Limited (RTAs)

Subramanian Building, No. 1, Club House Road
Near Spencers Signal, Anna Salai, Royapettah
Chennai - 600002, Tamil Nadu
rani@cameoindia.com

Other Disclosures:

Details of unclaimed dividends, shares liable for transfer
to the IEPF Authority, and benefits accrued on shares
already transferred are disclosed in the Corporate
Governance Report, forming part of this Annual Report.

The Company has also published the contact details of
the Nodal Officer designated for coordinating with the
IEPF Authority on its website.

For further details, shareholders are requested to refer
to the Corporate Governance Report, which forms part
of this Annual Report.

Material Changes and commitments
affecting financial position between the end
of the financial year and the date of report

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

Corporate Governance and Board Oversight

In accordance with its Vision, 20 Microns Limited (‘20ML')
aspires to be the global Minerals & Specialty Chemical
industry benchmark for value creation and corporate
citizenship. 20 Microns Limited expects to realize its
Vision by taking such actions as may be necessary in
order to achieve its goals of value creation, safety,
environment and people.

Pursuant to the Schedule V of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015 (“SEBI Listing Regulations”), the Corporate
Governance Report along with the Certificate from a
Practicing Company Secretary, certifying compliance
with conditions of Corporate Governance, forms part of
this Annual Accounts 2025-26 (Annexure).

a) Meetings of the Board and Committees of the
Board

The Board met four times during the year
under review. The intervening gap between
the meetings was within the period prescribed
under the Companies Act, 2013 and the SEBI
Listing Regulations. The Committees of the Board
usually meet the day before or on the day of the
Board meeting, or whenever the need arises for
transacting business. Details of composition of
the Board and its Committees as well as details
of Board and Committee meetings held during
the year under review and Directors attending
the same are given in the Corporate Governance
Report.

b) Selection of New Directors and Board Membership
Criteria

The Nomination and Remuneration Committee
(‘NRC') engages with the Board to evaluate the
appropriate characteristics, skills and experience
for the Board as a whole as well as for its individual
members with the objective of having a Board with
diverse backgrounds and experience in business,
finance, governance, and public service. The NRC
on the basis of such evaluation, determines the
role and capabilities required for appointment
of Independent Director. Thereafter, the NRC
recommends to the Board the selection of new
Directors.

Characteristics expected of all Directors include
independence, integrity, high personal and
professional ethics, sound business judgement,
ability to participate constructively in deliberations
and willingness to exercise authority in a collective
manner. The Company has in place a Policy on
appointment & removal of Directors.

The salient features of the Policy are:

a) It acts as a guideline for matters relating
to appointment and re-appointment of
Directors.

b) It contains guidelines for determining
qualifications, positive attributes of directors,
and independence of Director

c) It lays down the criteria for Board Membership

d) I t sets out the approach of the Company on
board diversity

e) It lays down the criteria for determining
independence of a director, in case of
appointment of an Independent Director

The Policy is available on the website of the
Company athttps://www.20microns.com/
corporate-governance-policies-codes.

Familiarization Programme for Directors

As a practice, all new Directors (including Independent
Directors) inducted to the Board go through a
structured orientation programme. Presentations are
made by Senior Management giving an overview of the
operations, to familiarize the new Directors with the
Company's business operations. The new Directors are
given an orientation on the products of the business,
group structure and subsidiaries, Board constitution
and procedures, matters reserved for the Board,
and the major risks and risk management strategy of
the Company. Visits to plant and mining locations are
organized for the new Directors to enable them to
understand the business better.

Details of orientation given to the new and existing
Independent Directors in the areas of strategy/industry
trends, operations & governance, and safety, health and
environment initiatives are available on the website of the
Company at https:// www.20microns.com/corporate-
governance-policies-codes.

Evaluation

The Board evaluated the effectiveness of its functioning
of the Committees and of individual Directors, pursuant
to the provisions of the Act and the SEBI Listing
Regulations. The Board sought the feedback of Directors
on various parameters including:

a) Degree of fulfillment of key responsibilities towards
stakeholders (by way of monitoring corporate
governance practices, participation in the long-term
strategic planning, etc.);

b) Structure, composition and role clarity of the Board
and Committees;

c) Extent of co-ordination and cohesiveness between
the Board and its Committees;

d) Effectiveness of the deliberations and process
management;

e) Board/Committee culture and dynamics; and

f) Quality of relationship between Board Members
and the Management.

The above criteria are broadly based on the Guidance
Note on Board Evaluation issued by the Securities and
Exchange Board of India on January 5, 2017.

In a separate meeting of the IDs, the performance of the
Non-Independent Directors, the Board as a whole and
Chairman of the Company were evaluated taking into
account the views of Executive Directors and other Non¬
Executive Directors.

The NRC reviewed the performance of the individual
Directors and the Board as a whole.

Outcome of Evaluation

The evaluation process endorsed the Board Members
confidence in the ethical standards of the Company,
the resilience of the Board and the Management in
navigating the Company during challenging times,
cohesiveness amongst the Board Members, constructive
relationship between the Board and the Management
and the openness of the Management in sharing strategic
information to enable Board Members to discharge their
responsibilities and fiduciary duties.

Remuneration Policy for the Board and
Senior Management

Based on the recommendations of the NRC, the Board
has approved the Remuneration Policy for Directors, Key
Managerial Personnel (‘KMPs') and all other employees
of the Company. As part of the policy, the Company
strives to ensure that:

a) the level and composition of remuneration is
reasonable and sufficient to attract, retain and
motivate Directors of the quality required to run the
Company successfully;

b) relationship between remuneration and
performance is clear and meets appropriate
performance benchmarks; and

c) remuneration to Directors, KMPs and Senior
Management involves a balance between fixed and
incentive pay, reflecting short, medium and long¬
term performance objectives appropriate to the
working of the Company and its goals.

The salient features of the Policy are:

• Based on which payment of remuneration (including
sitting fees, remuneration and commission) should
be made to Independent Directors (IDs) and Non¬
Executive Directors (NEDs).

• Based on which remuneration (including fixed salary,
benefits and perquisites, bonus/performance linked
incentive, commission, retirement benefits) should
be given to whole-time directors, KMPs and rest of
the employees.

• For remuneration payable to Directors for services
rendered in other capacity.

During the year under review, there has been no change
to the Policy. The Policy is available on the website of the
Company athttps://www.20microns.com/corporate-
governance-policies-codes.

Particulars of Employees

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
(‘Rules') are annexed to this report (Annexure).

In terms of the provisions of Section 197(12) of the Act
read with Rules 5(2) and 5(3) of the Rules, a statement
showing the names and other particulars of employees
drawing remuneration in excess of the limits set out in
the said Rules forms part of this Report. Further, the
Report and the Annual Accounts are being sent to the
Members excluding the aforesaid statement. In terms of
Section 136 of the Act, the said statement will be open for
inspection upon request by the Members. Any Member
interested in obtaining such particulars may write to the
Company Secretary at co_secretary@20microns.com

Directors

The year under review following changes has been
made in the Board of Directors (‘Board').

a) Retirement

During the year under review, Dr. Ajay I. Ranka
(DIN: 01676073) completed his second consecutive
term as an Independent Director of the Company
on September 24, 2025, in accordance with
the provisions of Section 149(10) and 149(11) of
the Companies Act, 2013 read with Rule 4 of the
Companies (Appointment and Qualification of
Directors) Rules, 2014, and the tenure guidelines
for Independent Directors issued by the Ministry of
Corporate Affairs (MCA).

Accordingly, he ceased to be an Independent
Director and Member of the Board with effect from
the said date. The Board places on record its sincere
appreciation for the invaluable contributions,
strategic insights and guidance provided by Dr. Ajay

I. Ranka during his tenure, and acknowledges his
significant role in upholding the highest standards
of governance as an Independent Director on the
Board of the Company.

b) Appointment

The Board of Directors, based on the
recommendation of the Nomination and
Remuneration Committee (“NRC”), appointed
Mr. Prem Kumar Taneja (DIN: 00010589) as
an Additional Director in the capacity of an
Independent Director, with effect from May
23, 2025, in accordance with the provisions of
Sections 149 and 161 of the Companies Act, 2013
and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

Subsequently, the Members approved his
appointment as an Independent Director, not liable
to retire by rotation, for a term of five (5) consecutive
years from May 23, 2025 to May 22, 2030, through a
special resolution passed at the 38^th Annual General
Meeting held on August 8, 2025.

Mr. Taneja has extensive experience in governance,
administration and business management. His
expertise is expected to add significant value to the
deliberations of the Board and its Committees.

This item is included in the AGM Notice of the 38^th
AGM for the information of the Members, as the
appointment and regularization of Mr. Prem Kumar
Taneja were completed during the financial year
2025-26.

c) Re-appointment of Director retiring by rotation

In terms of the provisions of the Companies Act,
2013, Mrs. Sejal Parikh (DIN 00140489), Director
of the Company, retires at the ensuing AGM and
being eligible, seeks re-appointment. The necessary
resolution for re-appointment of Mrs. Sejal Parikh
forms part of the Notice convening the ensuing AGM.

Independent Directors’ Declaration

The Company has received declarations from all the
Independent Directors confirming that they meet the
criteria of independence as prescribed under Section
149(6) of the Act and Regulation 16(1)(b) of the SEBI Listing
Regulations and are independent of the Management. In
terms of Regulation 25(8) of the SEBI Listing Regulations,
they have confirmed that they are not aware of any
circumstance or situation which exist or may be reasonably
anticipated, that could impair or impact their ability to
discharge their duties with an objective independent

judgement and without any external influence. The
Board of Directors of the Company has taken on record
the declaration and confirmation submitted by the
Independent Directors after undertaking due assessment
of the veracity of the same.

The Board is of the opinion that all Directors including
the Independent Directors of the Company possess
requisite qualifications, integrity, expertise and
experience (including proficiency) in the fields of
science and technology, digitalization, strategy, finance,
governance, human resources, safety, sustainability, etc.
In the opinion of the Board, the Independent Directors of
the Company are persons of high repute, integrity and
possesses the relevant expertise and experience in the
respective fields.

The Independent Directors of the Company have
confirmed that they have enrolled themselves in the
Independent Directors' Databank maintained with the
Indian Institute of Corporate Affairs (‘IICA') in terms of
Section 150 of the Act read with Rule 6 of the Companies
(Appointment & Qualification of Directors) Rules, 2014.

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 incurred
by them for the purpose of attending meetings of the
Board/ Committees of the Company.

Key Managerial Personnel

In accordance with the provisions of Section 2(51) and
Section 203 of the Companies Act, 2013, read with
the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the Key Managerial
Personnel (KMP) of the Company as on the date of this
Report are:

There were no changes in the Key Managerial Personnel
of the Company during the year under review and up to
the date of this Report.

Summary of Board Composition and Changes (as on March 31, 2026)

Board & Committee Meeting General Disclosures and Composition

a) Meetings of the Board

Four (4) meetings of the Board of Directors were held during the year. The particulars of the meetings held and
attendance of each Director are detailed in the Corporate Governance Report.

The composition of the Board of Directors is in compliance with the provisions of the Companies Act, 2013
and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board comprises an
appropriate mix of Executive, Non-Executive, and Independent Directors, including one Woman Director,
reflecting a diversity of skills, experience, and perspectives.

b) Board Committees

The Board of Directors has constituted various committees in accordance with the provisions of the Companies
Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to ensure
focused and effective governance. The composition of these committees underwent changes during the year
under review following the completion of the second consecutive term of Dr. Ajay I. Ranka (DIN: 01676073),
Independent Director, on September 24, 2025.

The Board places on record its sincere appreciation for the outstanding service, strategic guidance, and valuable
insights provided by Dr. Ajay I. Ranka during his association with the Company and as member/chairperson of
various committees.

i) Audit Committee

The Audit Committee of the Company is duly constituted in accordance with the provisions of Section 177
of the Companies Act, 2013 and Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.

The Committee was reconstituted during the year to align with the changes in the composition of the Board
of Directors. The terms of reference, role and powers of the Audit Committee are in accordance with the
applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations.

During the financial year 2025-26, four (4) meetings of the Audit Committee were held. All recommendations
made by the Audit Committee during the year were accepted by the Board of Directors.

The details relating to the meetings, attendance, terms of reference and other particulars of the Audit
Committee are provided in the Corporate Governance Report forming part of this Annual Report.

ii) Nomination and Remuneration Committee

The Nomination and Remuneration Committee has been duly constituted in accordance with the provisions
of Section 178 of the Companies Act, 2013 and Regulation 19 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. The Committee was reconstituted during the year to align with changes
in the Board composition.

During the financial year 2025-26, two (2) meetings of the Nomination and Remuneration Committee
were held. All recommendations made by the Committee during the year were accepted by the Board of
Directors.

The details relating to the meetings, attendance, terms of reference and other particulars of the Nomination
and Remuneration Committee are provided in the Corporate Governance Report forming part of this Annual
Report.

iii) Stakeholders Relationship Committee

The Stakeholders Relationship Committee was duly constituted in compliance with Section 178 of the
Companies Act, 2013 and Regulation 20 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. The Committee was reconstituted during the year to align with changes in the Board
composition.

Current composition of the Stakeholders Relationship Committee:

The Committee met once (1) during FY 2025-26. The Board accepted all recommendations made by the
Committee. Further details are furnished in the Corporate Governance Report.

iv) Corporate Social Responsibility (CSR) Committee

In compliance with the provisions of Section 135 of the Companies Act, 2013, the Corporate Social
Responsibility (CSR) Committee was duly constituted.

During FY 2025-26, the CSR Committee held meeting(s). All recommendations made by the Committee
were duly accepted by the Board. Details of attendance and CSR initiatives undertaken are available in the
Corporate Governance and CSR Reports respectively.

Internal Financial Controls

In accordance with the provisions of Section 134(5)(e) of
the Companies Act, 2013, the Company has established
and maintained adequate internal financial controls with
reference to the financial statements. These controls are
commensurate with the nature, scale, and complexity
of the Company's operations and are designed to
ensure accuracy and reliability in financial reporting,
compliance with applicable laws and regulations, and
the safeguarding of assets.

The Company follows a robust internal control framework
embedded across its operations. The key internal
financial controls have been documented, automated
wherever feasible, and integrated into the relevant
business processes. These systems are continually
assessed and strengthened to respond to changing
business needs and emerging risks.

Assurance on the effectiveness of the internal financial
controls is provided through a structured Three Lines of
Defense model:

• First Line - Management reviews, internal control
self-assessments, and process ownership by
operational teams.

• Second Line - Ongoing monitoring and functional
reviews by compliance and risk management teams.

• Third Line - Independent evaluation by the Group
Internal Audit function through periodic design and
operational effectiveness testing.

The Audit Committee and the Board regularly review the
internal audit reports and oversee the implementation
of audit recommendations to ensure timely remediation

of control gaps, if any. There were no significant control
deficiencies reported during the year under review.

The Company operates on the SAP ERP platform,
which ensures robust transactional controls, including
segregation of duties, approval workflows, policy
compliance, and audit trails.

During the year under review, no material weaknesses
in the design or operation of internal financial controls
were observed. Further details are provided in the
Management Discussion and Analysis section of this
Annual Report.

Whistleblower and Vigil Mechanism Policy

The Company believes in the conduct of the affairs of
its constituents in a fair and transparent manner by
adopting the highest standards of professionalism,
honesty, integrity and ethical behavior. In line with the
20 Microns Code of Conduct (‘20MLCoC'), any actual or
potential violation, howsoever insignificant or perceived
as such, would be a matter of serious concern for the
Company. The role of the employees in pointing out
such violations of the 20MLCoC cannot be undermined.
Pursuant to Section 177(9) of the Act and Regulation
22 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, a vigil mechanism was
established for directors and employees to report to the
management instances of unethical behavior, actual or
suspected, fraud or violation of the Company's code of
conduct or ethics policy. The vigil mechanism provides
multiple channels for reporting concerns including an
option for escalations, if any, to the Chairperson of the
Audit Committee of the Company. The policy of vigil
mechanism is available on the Company's website at URL:
https://www.20microns.com/corporate-governance-
policies-codes

Prevention of sexual harassment at
workplace

20 Microns Limited is committed to providing a safe,
respectful, and inclusive work environment for all its
employees. The Company follows a zero-tolerance
policy towards sexual harassment at the workplace and
has adopted a Policy on Prevention, Prohibition and
Redressal of Sexual Harassment at Workplace, in line
with the provisions of the Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal)
Act, 2013 and the Rules made thereunder.

In compliance with the aforesaid legislation, the Company
has constituted an Internal Committee (IC) at all its work
locations to inquire into complaints of sexual harassment
and recommend appropriate action, wherever required.

The details of complaints under the POSH Act during the
financial year ended March 31, 2026, are as follows:

The Company continues to reinforce awareness among
employees through regular training sessions and the
POSH campaign, thereby reiterating its unwavering
commitment to a safe and equitable workplace.

Compliance with the Maternity Benefit Act,
1961

Pursuant to the applicable provisions of the Companies
Act, 2013 read with the Companies (Accounts) Rules,
2014, as amended, the Company confirms that it has
complied with the applicable provisions of the Maternity
Benefit Act, 1961 during the financial year under review.

The Company remains committed to ensuring welfare,
dignity and equal opportunity for women employees
and provides applicable maternity benefits and related
statutory entitlements to eligible women employees in
accordance with the provisions of the Maternity Benefit
Act, 1961 and the rules framed thereunder.

Compliance with Secretarial Standards

The applicable Secretarial Standards, i.e. SS-1 and
SS-2 relating to ‘Meetings of the Board of Directors'
and ‘General Meetings' respectively, have been duly
complied by your Company.

Contracts or arrangements with related
parties

The Company has in place a robust framework for
identifying, reviewing, and approving Related Party
Transactions (RPTs), in accordance with the provisions
of the Companies Act, 2013 and Regulation 23 of the
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. The Policy on Materiality of and
Dealing with Related Party Transactions is available on
the Company's website at:https://www.20microns.
com/ corporate-governance-policies-codes.

All RPTs entered into during the year were in the ordinary
course of business and on an arm's length basis. These
transactions were placed before the Audit Committee
for prior approval, and where applicable, omnibus
approvals were obtained for repetitive transactions of a

routine nature. There were no materially significant RPTs
that could have a potential conflict with the interests of
the Company.

Pursuant to Section 134(3)(h) of the Act read with
Rule 8(2) of the Companies (Accounts) Rules, 2014,
particulars of contracts or arrangements with related
parties referred to in Section 188(1) are disclosed in Form
AOC-2, annexed to this Report as Annexure.

Disclosures relating to related party transactions, as
required under Indian Accounting Standard (Ind AS)
24, are provided in the notes to the standalone and
consolidated financial statements forming part of this
Annual Report.

Subsidiaries, Joint Ventures and Associates

As on March 31, 2026, your Company had four
subsidiaries, three step-down subsidiaries and two
associate / joint venture companies. Out of the said
subsidiaries, 20 MCC Private Limited and 20 Microns Sdn.
Bhd. were wholly-owned subsidiaries of the Company.

The details of financial performance and position of
each of these entities are provided in Form AOC-1, which
forms part of this Report as Annexure.

During the year under review, the Board of Directors
reviewed the operations and financials of all material
subsidiaries. There was no material change in the nature
of business of any subsidiary, associate company or joint
venture company.

In accordance with Section 129(3) of the Companies
Act, 2013 (“the Act”) read with Rule 8 of the Companies
(Accounts) Rules, 2014 and applicable Accounting
Standards, the Consolidated Financial Statements of the
Company, including its subsidiaries, associates and joint
ventures, form part of this Annual Report. A statement
containing the salient features of their financial
statements is provided in Form AOC-1.

Pursuant to Section 136 of the Act and the SEBI Listing
Regulations, the audited standalone and consolidated
financial statements of the Company, along with the
separate financial statements and relevant documents
of its subsidiaries, associate companies and joint venture
companies, are available on the Company's website at
www.20microns.com. These documents shall also be
available for inspection through electronic mode during
the Annual General Meeting.

Group Composition (as on March 31, 2026)

Key Developments During the Year

During the financial year under review, the Company undertook the following strategic initiative in relation to its
subsidiary:

Increase in shareholding in 20 Microns Nano Minerals Limited

The Board of Directors, at its meeting held on May 23, 2025, approved the acquisition of the remaining equity shares
of 20 Microns Nano Minerals Limited (“20MNML”), a subsidiary of the Company, from its existing shareholders.

Pursuant to the said approval, the Company's shareholding in 20MNML increased from 97.21% to 99.99%. The said
acquisition was undertaken with a view to strengthening the Company's ownership and control over 20MNML
and facilitating more effective management, faster decision-making and strategic, operational and other potential
benefits under applicable laws.

Except as stated above, there were no material changes in the nature of business of the subsidiaries, associate
companies or joint venture companies during the year under review.

Performance Snapshot - FY 2025-26

Auditors

a) Statutory Auditors

Members of the Company at the 35^th AGM held on
July 22, 2022, approved the appointment of M/s.
Manubhai & Shah LLP, Chartered Accountants
(Registration No. 106041W/W100136), as the
Statutory Auditors of the Company for a tenure of
five (5) years commencing from the conclusion of
the 35th AGM of the Company until the conclusion
of the 40th AGM of the Company to be held in the
year 2027.

The report of the Statutory Auditors forms part
of this Annual Report and Annual Accounts for
FY 2025-26. The said report does not contain
any qualification, reservation, adverse remark or
disclaimer.

b) Cost Auditors

I n terms of Section 148 of the Act, the Company is
required to maintain cost records and have the audit
of its cost records conducted by a Cost Accountant.
Cost records are prepared and maintained by the
Company as required under Section 148(1) of the
Act.

The Board of Directors of the Company has,
at its meeting held on May 22, 2026, on the
recommendation of the Audit Committee meeting
held on May 22, 2026, approved the re-appointment
of M/s. Y. S. Thakar & Co., Cost Accountants (Firm
Registration No. 000318), in Practice as Cost
Auditors of the Company for conducting cost audit
for FY 2026-27. M/s. Y. S. Thakar & Co. have vast
experience in the field of cost audit and have been
conducting the audit of the cost records of the
Company for the past several years.

I n accordance with the provisions of Section 148(3)
of the Act read with Rule 14 of the Companies
(Audit and Auditors) Rules, 2014, as amended, the
remuneration payable to the Cost Auditors for
conducting cost audit of the Company for FY 2026¬
27, as recommended by the Audit Committee and
approved by the Board, has to be ratified by the
Members of the Company. The same is placed for
ratification of Members and forms part of the Notice
of the ensuing 39^th AGM.

c) Secretarial Auditors

Pursuant to Section 204 of the Companies Act, 2013
and Regulation 24A of the SEBI Listing Regulations,
M/s. Parikh Dave & Associates, Practicing Company
Secretaries, Firm Registration No. P2006GJ009900,
conducted the Secretarial Audit of the Company
for FY 2025-26. The Secretarial Audit Report is
annexed to this Report as Annexure and does
not contain any qualification, reservation, adverse
remark or disclaimer.

The Secretarial Audit Report of the Company's
Indian material unlisted subsidiary, 20 Microns Nano
Minerals Limited, is also annexed to this Report as
Annexure.

Further, pursuant to the amended Regulation 24A
of the SEBI Listing Regulations, the Members at the
39^th AGM approved the appointment of M/s. Parikh
Dave & Associates as Secretarial Auditors of the

Company for five consecutive financial years from
FY 2025-26 to FY 2029-30.

Reporting of Fraud

During the year under review, the Statutory Auditors,
Cost Auditors and Secretarial Auditors have not reported
any instances of frauds committed in the Company by
its officers or employees to the Audit Committee under
Section 143(12) of the Act, details of which need to be
mentioned in this Report.

Industrial Relations

During the year under review, the industrial relations
climate across all manufacturing locations in the Minerals
and Specialty Chemicals sectors remained consistently
positive. The Company continues to promote a proactive,
employee-centric approach, fostering a collaborative
and future-ready workplace.

Several initiatives aimed at enhancing workforce
engagement and nurturing an innovative, productive, and
competitive shop-floor environment have gained further
momentum. Key programs include the development
of Self-Managed Teams, the “Employee of the Year”
award, Rewards and Recognition for associates, and
other general employee engagement initiatives.

To strengthen a culture of integrity and ethical conduct,
the Company has made training on the Code of
Conduct, Prevention of Sexual Harassment (POSH), Anti¬
Bribery and Anti-Corruption (ABAC), and Human Rights
mandatory for all employees. The Human Resources
Department plays a pivotal role in fostering a positive
work culture, leading the design, implementation, and
periodic evaluation of these initiatives.

With an emphasis on capability building and developing
a future-ready workforce, the Company continues to
implement a wide range of training and engagement
programs. During the year, particular focus was placed
on employee health and wellness. In addition to annual
medical check-ups and health awareness initiatives,
the Company has promoted the adoption of balanced
dietary habits as part of a healthy lifestyle. The
introduction of employee health assessments has also
proven effective in identifying individuals who require
focused counselling and monitoring.

The Company's employee relations approach is
underpinned by transparent communication, timely
grievance resolution, and the core belief that employees
are its most valuable asset. The ongoing adoption of an
open-door policy and continuous dialogue has helped
cultivate trust, alignment, and mutual respect at all levels
of the organization.

These sustained efforts have contributed to a highly
positive industrial relations environment throughout FY
2025-26, with zero production loss reported across any
manufacturing location. This reflects the success of the
Company's commitment to building a cohesive, healthy,
and high-performance workplace.

Fixed Deposits

The Company accepts unsecured fixed deposits
exclusively from its shareholders, in accordance with the
provisions of the Companies Act, 2013 and the applicable
Rules made thereunder.

As on March 31, 2026, the total outstanding fixed
deposits from shareholders stood at Rs. 2,147.66 lacs,
of which deposits amounting to Rs. 1,352.66 lacs are due
for repayment on or before March 31, 2027.

During the year:

• Deposits amounting to Rs. 1,148.62 lacs were
renewed.

• Unpaid or unclaimed deposits as on March 31, 2026,
stood at Rs. 2 lacs.

During the year under review, the Company has not
defaulted in the repayment of deposits or payment
of interest thereon at any time. Further, there was no
default in this regard at the beginning of the financial
year.

Credit Rating

The Company's credit rating has been reaffirmed by
ICRA Limited (Moody's Group Company), which has
taken a consolidated view of 20 Microns Limited and its
subsidiaries, including foreign entities.

The reaffirmed ratings reflect the Group's established
market position in the micronized mineral segment,
experienced leadership, consistent growth in operations,
and healthy profitability. The rating also factors in the
Company's ongoing focus on Research & Development
for value-added products and process enhancements,
which continues to strengthen its competitive advantage.

Summary of Rating Action by ICRA

Annual Return

The Annual Return for Financial Year 2025-26 as per
provisions of the Act and Rules thereto, is available on
the Company's website athttps://www.20microns.
com/annual-returns

Significant and Material Orders passed by
the Regulators or Courts

There has been no significant and material order passed
by the regulators or courts or tribunals impacting
the going concern status and the Company's future
operations. However, Members' attention is drawn to
the statement on contingent liabilities, commitments in
the notes forming part of the Financial Statements.

Risk Management

Risk management at 20 Microns Limited is a key
component of the Company's strategic and operational
planning. While the SEBI (LODR) Regulations mandate
a Risk Management Committee (RMC) only for the top
1,000 listed entities, the Board has voluntarily taken
proactive steps to strengthen the Company's risk
oversight framework and is in the process of constituting
an RMC.

The Board currently oversees the risk management
function, supported by the Senior Leadership Team,
designated as the Risk Management Group. The
Company has adopted a Risk Management Policy
that sets out an Enterprise Risk Management (ERM)
framework to identify, assess, mitigate, and monitor both
internal and external risks across business functions and
geographies.

The ERM process follows a dual approach-bottom-up,
where business units assess their own risks and apply
mitigation strategies, and top-down, where strategic and
macro-level risks are reviewed by senior management
and, prospectively, by the RMC. This structure ensures
that emerging risks are integrated into the Company's
strategic decision-making process.

With an increasingly volatile and complex business
environment, 20 Microns continues to benchmark its
risk practices against global standards, reaffirming its
commitment to resilient and sustainable growth.

Particulars of Loans, Guarantees or
Investments

Pursuant to Section 186 and other applicable provisions
of the Companies Act, 2013 and the Rules made
thereunder, the details of loans given, guarantees
provided and investments made by the Company during
FY 2025-26 are as under:

Details of Loans and Investments

During the year under review, the Company acquired
2,49,891 equity shares of 20 Microns Nano Minerals
Limited for an aggregate consideration of '489.79
Lakhs, thereby increasing its shareholding from 97.21%
to 99.99%.

In respect of the Company's investment in 20 Microns
Sdn. Bhd., Wholly-Owned Foreign Subsidiary, an amount
of '77.46 Lakhs has been recognised as an adjustment
towards the cost of investment on account of favourable
foreign currency fluctuation. The said adjustment did not
result in any change in the number of equity shares held
by the Company or in its percentage of shareholding in
the said subsidiary.

The Company also provided a shareholder / inter¬
corporate loan of '200.00 Lakhs to Sievert 20 Microns
Building Materials Private Limited, pursuant to the
approval of Members obtained through Postal Ballot,
the results of which were declared on March 9, 2026,
in accordance with Section 185 of the Companies Act,
2013.

The above loan and investments were made in
compliance with the applicable provisions of the
Companies Act, 2013.

Energy Conservation, Technology
Absorption and Foreign Exchange Earnings
and Outgo

Details of the energy conservation, technology
absorption and foreign exchange earnings and outgo
are annexed to this report (Annexure).

Directors’ Responsibility Statement

Based on the framework of internal financial controls
and compliance systems established and maintained by
the Company, work performed by the internal, statutory,
cost, secretarial auditors and external agencies,
including audit of internal controls over financial
reporting by the Statutory Auditors and the reviews
performed by Management and the relevant Board
Committees, including the Audit Committee, the Board
is of the opinion that the Company's internal financial
controls were adequate and effective during FY 2025¬
26. Accordingly, pursuant to Section 134(5) of the Act,
the Board of Directors, to the best of their knowledge
and ability, confirm that:

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

b) they have selected such accounting policies and
have 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 of the Company for that period;

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

d) they have prepared the annual accounts on a going
concern basis;

e) they have laid down internal financial controls to be
followed by the Company and such internal financial
controls are adequate and operating effectively;
and

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

Please refer to the paragraph on Internal Control Systems
and their Adequacy in the Management Discussion and
Analysis report for detailed analysis.

Acknowledgements

The Board of Directors expresses its sincere appreciation
to all employees of the Company for their dedication,
commitment, and contribution to its performance
and growth during the year. The collective efforts of
the workforce have been instrumental in navigating
challenges and driving progress.

The Board also extends its gratitude to the Company's
shareholders, customers, dealers, vendors, business
associates, bankers, employee unions, and other
stakeholders for their continued trust, support, and
collaboration.

The Directors acknowledge the valuable support and
guidance received from the Government of India, various
State Governments, local authorities, and regulatory
bodies in India and abroad. The Board looks forward to
their continued cooperation in the years ahead.

For and On behalf of Board of Directorss
For 20 Microns Limited

Sd/-

Rajesh C Parikh

Place: Waghodia, Vadodara Chairman & Managing
Date: May 22, 2026 Director

DIN:00041610