Your Directors are pleased to present the Seventeenth
Annual Report of the Company (“ACIL or Archean
Chemical”) together with the Audited Standalone and
Consolidated Financial Statements for the Financial Year
ended March 31,2026.

FINANCIAL PERFORMANCE

In the Financial Year (“FY”) 2025-26, the standalone
revenue from operations was Rs. 1,04,153.98 Lakhs as
against Rs. 1,01,379.02 Lakhs during 2024-25, with a
Increase of 2.74%.

Net Profit after tax for FY 2025-26 was Rs. 15,437.29 Lakhs
as against Rs. 18,492.34 Lakhs in the previous year.

For FY 2025-26, the consolidated revenue from operations
was Rs. 1,08,105.07 Lakhs as against Rs. 1,04,101.79 Lakhs
during FY 2024-25, with a Increase of 3.85%. Net Profit after
tax for FY 2025-26 was Rs. 10,540.80 Lakhs as against
Rs. 16,214.49 Lakhs in the previous year.

For more details on the Consolidated and Standalone
performance, please refer to Management Discussion and
Analysis Report and the Financial Statements.

Industrial Salt Business

Industrial Salt remained a key revenue driver during the year
and the division delivered steady performance, supported
by consistent demand from the chlor-alkali, water treatment,
and chemical processing industries. The Company's
large-scale salt production infrastructure and cost-effective
operations enabled it to remain a preferred supplier in both
domestic and international markets.

Strategic initiatives focused on improving yield, optimizing
logistics, and enhancing supply chain efficiencies
contributed positively to the segment's overall performance.

Sulphate of Potash (SOP) Business

The Sulphate of Potash segment witnessed gradual
growth during the year, driven by increasing awareness
and adoption of high-value fertilizers in agriculture.
SOP continued to gain traction due to its suitability for
chloride-sensitive crops and its role in improving crop yield
and quality.

The Company focused on strengthening its market
presence, enhancing distribution networks, and promoting
the agronomic benefits of SOP among farmers and
agri-input stakeholders.

Market Outlook and Strategic Direction

Looking ahead, the Company remains optimistic about
long-term growth prospects across all its business
segments. Rising global demand for bromine derivatives,
increasing industrialisation, and the growing need for
sustainable agricultural inputs are expected to provide
significant growth opportunities.

The Company will continue to focus on:

• Expanding its global footprint and customer base

• Enhancing operational efficiencies and cost
competitiveness

• Investing in sustainability and environmentally
responsible practices

• Strengthening value-added product offerings

Overall, FY 2025-26 has been a year of stable performance
and strategic progress for ACIL. The Company remains
well-positioned to capitalise on emerging opportunities
and deliver sustained value to its stakeholders through
its integrated business model and strong operational
capabilities.

DIVIDEND

During FY 2025-26, the Board of Directors
(“Board”/”Directors”) has recommended a final dividend of

Rs. 3/- per equity share for the financial year ended March
31, 2025 and the same has been approved by the Members
at the 16^th Annual General Meeting of the Company
held on June 02, 2025 and this entailed an outflow of
Rs. 3,702.83 Lakhs with a pay-out ratio of 150%.

Your Directors have pleasure in recommending a dividend
of Rs. 2.50/- per equity share for the financial year ended
March 31, 2026 subject to the approval of Members at the
ensuing Annual General Meeting (“AGM”) of the Company.
This would entail an outflow of Rs. 3086.46 Lakhs with a
pay-out ratio of 125%. Upon approval of Members, it will be
paid to all the Members whose name appears in the register
of members as on June 05, 2026 (being the record date
fixed for this purpose).

In accordance with Regulation 43A of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, (hereinafter referred to as “SEBI LODR”), the Directors
of the Company has adopted a Dividend Distribution
Policy which endeavours for fairness, consistency and
sustainability while distributing profits to the members & the
above recommendation of the dividend by the Board is in
accordance with the “Dividend Distribution Policy” of the
company and the same is available on the website under the
link: https://www.archeanchemicals.com/investor-relations/
admin/assets/products/Dividend%20Distribution%20Policv.
pdf.

TRANSFER TO RESERVE

The Directors has decided to retain the entire amount of
profits for FY 2025-26 in the retained earnings.

TAXATION

The Company has made a current tax provision of
Rs. 5,384.87 Lakhs [PY: 6,531.62 Lakhs].

Current tax adjustments of earlier years is Rs. (31.33) Lakhs
as against Nil during the previous year.

The deferred tax for the Financial Year ended March 31,
2026 is Rs. 235.58 Lakhs (PY: Rs. (47.28) Lakhs).

SHARE CAPITAL

During FY 2025-26, the paid-up capital of the Company has
increased upon exercise of stock options by option grantees
and allotment of shares pursuant to the same.

As on March 31, 2026, the authorised share Capital of
the Company stood at Rs. 32,00,00,000 divided into
16,00,00,000 equity shares of Rs. 2/- each and consequent
to the ESOP allotment made during the year, the

paid-up share capital of the Company increased from
Rs. 24,68,55,364 divided into 12,34,27,682 equity shares of
Rs. 2/- each to Rs. 24,69,16,788 divided into 12,34,58,394
equity shares of Rs. 2/- each.

Other than the above, there is no change in the capital
structure of the Company during the year.

EMPLOYEE STOCK OPTION SCHEME

During FY 2025-26, the Board had allotted 30,712 equity
shares of face value of Rs. 2/- each upon exercise of stock
options granted under “Archean Employee Stock Option
Plan 2022 (ESOP 2022)”.

The Company has in place an Employee Stock Option
Scheme to incentivise and retain select senior management
personnel and key employees. The Nomination and
Remuneration Committee (“NRC”) administers and
monitors the Scheme in accordance with the provisions of
the Securities and Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) Regulations 2021
(ESOP Regulations) and other applicable laws.

The details of the stock options granted under “ESOP 2022”
and the disclosures in compliance with ESOP Regulations
and Section 62(1 )(b) of the Companies Act 2013, (“Act”)
read with Rule 12(9) of the Companies (Share Capital and
Debentures) Rules, 2014 is available on the website of the
Company at www.archeanchemicals.com. The relevant
disclosures in terms of the Act and in accordance with the
said Regulations are enclosed as Annexure I to the Board's
Report. The scheme is in compliance with the ESOP
Regulations.

During the year, no ESOP were granted to Non-Executive
Non-Independent Directors.

No Option grantee was granted options/shares during the
year, equal to or exceeding 1% of the issued capital.

The Company does not have any Scheme for issue of sweat
equity to the employees or Directors of the Company.

A certificate from Secretarial Auditor, with respect to
implementation of the above Employee Stock Option
Schemes in accordance with SEBI Regulations and the
resolution passed by the Members of the Company, will be
available electronically for inspection by the Members during
the ensuing AGM and a copy of the same shall be available
for inspection at the Corporate Office of the Company during
normal business hours on any working day.

DEPOSITORY SYSTEM

Your Company's shares are in compulsorily tradable
securities in electronic form. As on March 31, 2026, Equity
Shares 12,34,58,394 representing 100% of the paid-up
share are in dematerialised form.

INCOME TAX PROCEEDINGS

During the year under review, the Income Tax Department
conducted search proceedings under Section 132 of the
Income-tax Act, 1961 at certain offices, plants and other
premises of the Company and its subsidiary companies,
as well as at the residences of certain Directors and
employees, during the period from September 04, 2025 to
September 09, 2025. The proceedings were subsequently
continued through certain revisits by the authorities.

The Company and its representatives extended full
cooperation and provided the information and documents
sought by the authorities from time to time. As on the date
of this Report, no order or demand has been received by
the Company pursuant to the said proceedings. The matter
is being monitored by the Management and the impact
thereof, if any, is presently not ascertainable.

BOARD OF DIRECTORS

As on March 31, 2026, your Board comprises of seven (7)
Directors with an optimum combination of Executive and
Non-Executive Directors. Out of seven (7), three (3) are
Independent Directors including an Independent Woman
Director, two (2) are Non-Executive Non-Independent
Directors and two (2) are Executive Directors of the
Company. Mr. P Ranjit, Executive Vice Chairman (Whole¬
Time Director), Mr. P Ravi, Non-Executive Director and
M/s. Chemikas Speciality LLP are the Promoters of the
Company.

During the year, following appointment/re-appointment of
Directors took place:

a) Retirement by rotation and re-appointment of
Mr. S Meenakshisundaram, (DIN: 01176085) as
Non-Executive Director.

b) Mrs. Padma Chandrasekaran (DIN: 06609477)
Independent Director, designated as the Non-Executive
Chairperson of the Board.

c) Elevated Mr. P Ranjit (DIN: 01952929) from Managing
Director to Executive Vice Chairman (Whole-Time
Director).

d) Appointment of Mr. Rampraveen Swaminathan
(DIN: 01300682) as Managing Director of the Company.

The Company had formulated a Code of Conduct for the
Directors and Senior Management Personnel and the same
has been complied with.

Retirement by Rotation and Re-Appointment

In accordance with Section 152(6) of the Act and
Articles of Association of the Company, Mr. P Ravi,
(DIN: 02334379) a Non-Executive Director of the Company,
retires by rotation and being eligible, offers himself for
re-appointment at the ensuing AGM of the Company.

A brief resume of the Director being re-appointed, the
nature of expertise in specific functional areas, names of
companies in which he holds Directorships, Committee
Memberships/Chairpersonships, his shareholding in the
Company etc., have been furnished in the explanatory
statement to the notice of the ensuing AGM.

Independent Directors

The Independent Directors of the Company hold office for a
fixed term of five (5) years from the date of their appointment
and are not liable to retire by rotation.

The Company has received declarations from all
Independent Directors pursuant to Section 149(7) of the
Act, confirming that they meet the criteria of independence
prescribed under Section 149(6) of the Act and the SEBI
LODR. The Independent Directors have also complied with
the Code for Independent Directors as set out in Schedule
IV to the Act.

In terms of the Companies (Appointment and Qualification
of Directors) Rules, 2014, all Independent Directors have
registered themselves with the Independent Directors
Databank maintained by the Indian Institute of Corporate
Affairs (“IICA”) and are exempted/qualified the online
proficiency self-assessment test, as applicable.

Based on the recommendation of the NRC, the
Directors at its meeting held on May 11, 2026, has
evaluated the performance and contribution of the
following Independent Directors and recommended their
re-appointment to the Members for a second term of five (5)
consecutive years:

• Mr. Kandheri Munuswamy Mohandass (DIN: 00707839)

- from December 06, 2026 to December 05, 2031

• Mr. Chittoor Ghatambu Sethuram (DIN: 01081951)

- from December 06, 2026 to December 05, 2031

Both the above, Independent Directors are currently serving
their first term from December 06, 2021 to December 05,
2026 and are eligible for re-appointment.

The Company had issued letter of appointment to the Directors.
In accordance with Regulation 46 of the SEBI LODR, the terms
and conditions of appointment of Independent Directors are
available at the Company's website, at the following weblink:
https://www.archeanchemicals.com/investor-relations/
admin/assets/products/Terms-and-conditions-of-appt-of-
ID.pdf.

Details of familiarisation programmes imparted to Independent
Directors are provided in the Corporate Governance Report
Section of this Annual Report and the same is available at
the Company's website, at the following weblink:https://www.
archeanchemicals.com/investor-relations/annual-report.
php?id=MTc0.

Details of Remuneration to Directors

Details as required under the Act, in respect of remuneration
paid to Directors, are given in Corporate Governance Section
of this Annual Report and in the Annual Return uploaded
in the Company's website, at the following weblink:https://
www.archeanchemicals.com/investor-relations/annual-
report.php?id=MTY5.

Number of meetings of the Board

The Board met 7 (Seven) times during FY 2025-26 on May
02, 2025, July 28, 2025, November 14, 2025, January 19,
2026, February 04, 2026 March 19, 2026 and March 25,
2026. The details of Board meetings and attendance of the
Directors are provided in the Corporate Governance Report
Section of this Annual Report.

Diversity

Your Company recognises that a diverse Board enhances
the effectiveness of its deliberations and decision-making.
An appropriate balance of skills, experience, industry
knowledge and perspectives enables the Board to discharge
its responsibilities efficiently and supports sustainable long¬
term value creation for stakeholders.

Policy on Directors' Appointment and Remuneration:

Your Company's policy is to maintain an appropriate mix
of Independent and Non-Independent Directors to ensure
Board independence and an effective separation between
governance and management functions.

In accordance with Section 134 and 178 of the Act, the
Policy on appointment of Board Members including
criteria for determining qualifications, positive attributes,
independence of a Director and the Policy on remuneration
of Directors, KMP and other employees are outlined as part
of Nomination and Remuneration Policy of the Company
and salient features of the same are disclosed in this report.

NRC of your Board had fixed the criteria for nominating a
person on the Board which inter alia include desired size
and composition of the Board, age limit, qualification/
experience, areas of expertise and independence of the
individual.

BOARD EVALUATION

In accordance with the provisions of the Act and the SEBI
LODR, the Board carried out the annual performance
evaluation of the Board as a whole, its Committees and
individual Directors, based on the criteria laid down by the
NRC.

The evaluation criteria included, inter alia, attendance,
participation, expertise, contribution at Board and Committee
meetings, composition of the Board and Committees,
commitment to good corporate governance practices,
adherence to regulatory compliance, grievance redressal
mechanism, financial performance oversight, existence of
an integrated risk management system, flow of information,
Board culture and diversity, execution of specific duties,
obligations and governance responsibilities.

The evaluation was carried out through a structured
questionnaire, circulated electronically and/or in physical
mode, covering various aspects of Board functioning,
Committee effectiveness, individual performance and
governance processes.

In accordance with Regulation 25(4) of the SEBI LODR, the
Independent Directors, at their separate meeting, evaluated
the performance of the Chairman, Non-Independent
Directors and the Board as a whole, and also assessed
the quality, quantity and timeliness of flow of information
between the Management and the Board.

In accordance with Regulation 17(10) of the SEBI LODR,
the Board evaluated the performance of the Independent
Directors and observed that their performance was
satisfactory and that their participation and deliberations
were beneficial to the Board and Committee meetings.

In accordance with Regulation 4(2) of the SEBI LODR, the
Board reviewed the evaluation framework and observed
that the same was adequate and effective.

The Board's observations on the evaluation for the year
under review, carried out on May 11, 2026, were broadly in
line with previous years and no specific action was warranted
based on the current year evaluation. The Company
will continue to familiarise its Directors with industry,
technological, statutory and regulatory developments
having a bearing on the Company and the industry, to
enable them to effectively discharge their duties.

The Board is of the opinion that all Directors, including the
Independent Directors, possess the requisite qualifications,
integrity, expertise and experience in diverse fields such
as science and technology, digitalisation, strategy, finance,
governance, safety and sustainability etc.

BOARD COMMITTEES

The Board had following Committees during FY 2025-26:

a) Audit Committee

b) Stakeholders Relationship Committee

c) Nomination and Remuneration Committee

d) Corporate Social Responsibility Committee

e) Risk Management Committee

f) IPO Committee

The composition of the Directors and its Committees are in
accordance with the Act and the SEBI LODR.

In accordance with the requirement of Section 177(8) of
the Act, it is hereby disclosed that the Audit Committee
comprises of Mr. K M Mohandass, Chairperson of the
Committee, Mr. S Meenakshisundaram, Member and
Mrs. Padma Chandrasekaran, Member. A detailed note on
the attendance, composition of the Board and Committees
along with other disclosures are provided in the Corporate
Governance Report Section of this Annual Report.

Meetings of Board and Committees held during the year are
in compliance with the Act & SEBI LODR read with circulars
and notifications issued by Ministry of Corporate Affairs and
SEBI in this regard.

DIRECTORS' RESPONSIBILITY STATEMENT

Your Company's Directors make the following statement in
terms of sub-section (5) of Section 134 of the Act, which is
to the best of their knowledge and belief and according to
the information and explanations obtained by them:

a) In that the financial statements for the year ended
March 31, 2026 have been prepared in conformity
with Indian Accounting Standards (Ind AS) and
requirements of the Act and that of guidelines issued
by SEBI, to the extent applicable to the Company along
with proper explanation relating to material departures,
the directors had selected such accounting policies
and applied them consistently and made judgments
and estimates that are reasonable and prudent so as
to give a true and fair view of the state of affairs of the
Company at the end of the financial year and of the
profit and loss of the Company for that period,

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

c) The directors had prepared the annual accounts on a
going concern basis,

d) The directors had laid down internal financial controls
to be followed by the Company and that such internal
financial controls are adequate and were operating
effectively; and

e) The directors had devised proper systems to ensure
compliance with the provisions of all applicable laws
and that such systems were adequate and operating
effectively.

KEY MANAGERIAL PERSONNEL

Pursuant to the provisions of Section 2(51) and 203 of the
Act, the Key Managerial Personnel of the Company as on
March 31, 2026, are as follows:

• Mr. P Ranjit

Executive Vice Chairman (Whole-Time Director),

• Mr. Rampraveen Swaminathan
Managing Director,

• Mr. N R Kannan

KMP (Executive Director),

• Mr. R Natarajan

Chief Financial Officer; and

• Mr. Vijayaraghavan N E

Company Secretary & Compliance Officer.

During FY 2025-26, based on the recommendation of
the NRC, the Directors at its meeting held on January
19, 2026, approved the appointment of Mr. Rampraveen
Swaminathan as an Additional Director in the capacity of
Managing Director with effect from January 22, 2026 and
Mr. P. Ranjit, erstwhile Managing Director, was elevated as
Executive Vice Chairman in the designation of Whole-Time
Director of the Company with effect from January 22, 2026.

The aforesaid appointment and elevation/re-designation
were subsequently approved by the Members through
postal ballot on March 12, 2026.

Mr. N R Kannan, ceased to be a Key Managerial Personnel
with effect from the close of business hours on April 30, 2026.

There were no other changes in the Key Managerial
Personnel during the year under review.

REMUNERATION POLICY

In accordance with Section 178 of the Act, the NRC
of your Company has formulated the Nomination and
Remuneration Policy for the appointment and determination
of remuneration of the Directors, Key Managerial Personnel
and other employees of your Company. The Nomination
and Remuneration Policy ensure that the level and
composition of remuneration is reasonable and sufficient, to
attract, retain and motivate Directors and employees, and
that the relationship of remuneration to performance is clear
and aligned with the long-term objectives of the Company.
It also lays down the criteria for determining qualifications,
positive attributes and independence of Directors.

The NRC has also developed the criteria for determining
the qualifications, positive attributes and independence of
Directors and for making payments to Executive and Non¬
Executive Directors of the Company. The NRC recommends
to the Board the remuneration payable to Directors, which
is within the limits prescribed under the Act and where
required, approved by the Members.

The Company follows a compensation structure comprising
fixed pay, benefits and performance-linked variable pay,
based on the performance of the Company and individual
performance assessed through an annual appraisal
process.

The Erstwhile Managing Director Mr. P Ranjit, was paid
a fixed monthly remuneration in the form of salary and
paid commission annually based on the profits computed
in accordance with Section 198 of the Act. The present
Managing Director Mr. Rampraveen Swaminathan, was
paid a fixed monthly remuneration in the form of salary and
Performance Linked Annual Variable Pay. Non-Executive
Directors are paid remuneration by way of sitting fees based
on their participation in the Meetings and Commission paid
annually.

The remuneration paid to Directors is within the limits
prescribed under Section 197 of the Act and approved
by the Board and Members, wherever applicable. Sitting
fees paid to Directors for attending the Board Meeting &
Committee Meetings.

In accordance with Section 178(4) of the Act, the salient
features of the Nomination and Remuneration Policy are as
follows:

• 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,

e) Average percentile increase already made in the
salaries of employees other than the managerial
personnel in FY 2025-26: 8% and its comparison with
the percentile increase in the managerial remuneration
in FY 2025-26: 9%. Justification thereof and point out
if there are any exceptional circumstances for increase
in the managerial remuneration: NIL.

f) There was no variable component of remuneration
availed by Directors, except Commission of
Rs. 2,830.44 Lakhs paid to Mr. P Ranjit, Executive Vice
Chairman-WTD (Erstwhile Managing Director) and
Rs. 15 Lakhs each paid to Non-Executive Directors
including Independent Directors except Mr. P Ravi,
Non-Executive Director, who voluntarily waived his
entitlement to commission for the period ended
March 31, 2025.

g) It is hereby affirmed that the remuneration paid is as
per the Nomination and Remuneration Policy of the
Company to Directors, KMP and other Employees.

h) No employee who was in receipt of remuneration
in excess of that drawn by Whole-Time Director/
Managing Director, holds 2% or more of the equity
shares of the Company by himself or along with his
spouse and dependent children.

The information as per Rule 5(2) and Rule 5(3) of the Rules,
forms part of this Report. However, as per first proviso to
Section 136(1) of the Act and Second Proviso to Rule 5 of
the Rules, the Annual Report is being sent to the Members
of the Company excluding the statement of particulars of
employees under Rule 5(2) and Rule 5(3) of the Rules. Any
member interested in obtaining a copy of the said statement
may write to the Company Secretary & Compliance
Officer at the Registered Office of the Company. The said
statement is also available for inspection by the members
at Registered Office of the Company during office hours till
the date of AGM.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE
COMPANIES

Your Company has 3 subsidiaries and 2 step down
subsidiaries as on March 31, 2026.

The Audit Committee reviews the financial statements
of subsidiaries, including the investments made therein,
on a quarterly basis. The minutes of the Meetings of the
subsidiary companies are periodically placed before the
Board.

In accordance with Section 129(3) of the Act, read with
Rule 5 of Companies (Accounts) Rules, 2014, statement

containing the salient features of the financial statements
of the Subsidiary Company(ies) as per Form AOC-1 is
enclosed as Annexure II to the Board's Report.

In accordance with Regulation 46(2)(s) of SEBI LODR,
the separate audited/reviewed financial statements of the
above subsidiary companies for FY 2025-26 are available
at the Company's website at the following weblink:https://
www.archeanchemicals.com/investor-relations/annual-
report.php?id=MTc4.

Material Subsidiary

As per Regulation 16(1)(c) of the SEBI LODR, the Company
does not have any material subsidiary as on March 31,
2026.

The Company has formulated a Policy for determining
Material Subsidiaries. The Policy is available on the
Company's website at the following weblink:https://www.
archeanchemicals.com/investor-relations/annual-report.
php?id=MTYx.

Consolidated Financial Statements

In accordance with Section 129(3) of the Act and Regulation
33 and 34 of SEBI LODR, the Company has prepared
Consolidated Financial Statements in compliance with
the applicable Indian Accounting Standards (Ind AS). The
consolidated financial statements together with the Auditor's
Report thereon are set out in this Annual Report and are
available at the Company's website, at the following weblink:
https://www.archeanchemicals.com/investor-relations/
annual-report.php?id=MTU5.

Pursuant to Section 136 of the Act, the standalone and
consolidated financial statements of the Company, along
with the relevant documents and the separate audited
financial statements of the subsidiary companies, are
available on the website of the Companyhttps://www.
archeanchemicals.com/investor-relations/annual-report.
php?id=MTc4.

These financial statements are also available for inspection
by Members during normal business hours on any working
day. A copy of the same will be provided to any Member
upon request.

Subsidiary Company details:

The details of the subsidiary companies are as given below:

Idealis Chemicals Private Limited (ICPL)

ICPL, a wholly owned subsidiary of the Company,
incorporated on October 05, 2023 and is engaged in
the business of manufacture, processing and trading of
specialty chemicals, including oilfield and mud chemicals.

Idealis Mudchemie Private Limited (“IMPL”) (Formerly
known as Oren Hydrocarbons Private Limited)

IMPL, originally incorporated on July 20, 1990, became
a subsidiary of ICPL pursuant to its acquisition through
an e-auction process under the liquidation proceedings
approved by the National Company Law Tribunal (“NCLT”)
on July 09, 2024. Consequently, IMPL is a step-down
subsidiary of the Company. The Company is engaged in
oilfield services, including drilling and allied services, as well
as manufacturing and trading of oilfield and mud chemicals.

During FY 2025-26, the Directors approved a Scheme of
Amalgamation for the merger of ICPL with IMPL (reverse
merger), as the surviving entity, subject to regulatory
approvals.

The proposed amalgamation is aimed at rationalising the
group structure and is expected to result in operational
efficiencies, reduction in compliance requirements, better
alignment of governance, and effective utilisation of
resources. The Scheme has been filed with the Regional
Director and is currently awaiting approval.

The Board is of the opinion that the proposed amalgamation
is in the best interests of the Company and its stakeholders
and will enhance long-term value.

Neun Infra Private Limited (Neun)

Neun Infra Private Limited, is a wholly owned subsidiary
of the Company, incorporated on October 03, 2023 and
is engaged in the business of energy storage solutions,
including manufacture, assembly and trading of batteries,
energy storage devices, and related components and
systems.

SiCSem Private Limited (SiCSem)

SiCSem Private Limited is a subsidiary of Neun Infra Private
Limited was incorporated on December 30, 2023 and has
been established to develop India's domestic capabilities in
compound semiconductor manufacturing, with a particular
focus on silicon carbide (SiC)-based power semiconductor
devices. SiCSem is setting up an integrated Silicon Carbide
compound semiconductor facility (Fab Atmp) at Info Valley,
Bhubaneswar, Odisha. The project has been approved
under the India Semiconductor Mission and it is the first
commercial compound semiconductor fab approved by
India Semiconductor Mission in the country. The approved
project investment is approximately Rs. 2,066 cr. The facility
is proposed to have a production capacity of 5,000 wafers
per month, equivalent to 60,000 wafers per year, and a
packaging capacity of 8 million units per month, equivalent
to 96 million units per year. The facility will manufacture

silicon carbide devices and package power semiconductor
products for high-growth and strategically important sectors.

The proposed products are expected to serve applications
across electric vehicles, fast chargers, renewable energy
systems, solar power inverters, railway, data centre
infrastructure, consumer appliances, and other high-power
electronics applications.

The state government has allotted ~25 acres land at
Infovalley-II, Bhubaneshwar for this prestigious project
and approved the project under the Odisha Semiconductor
& Fabless Policy - 2023. SiCSem is in the process of
executing the Fiscal Support Agreement (“FSA”) with
the India Semiconductor Mission (“ISM”) under the
Semicon India Programme of the Government of India
for establishment of India's Silicon Carbide (SiC) based
Compound Semiconductor Fab and ATMP facility. The FSA
formalises the fiscal support framework for eligible capital
expenditure assistance under the said scheme.

SiCSem Star Pte. Ltd, Singapore (SiCSem Star)

SiCSem Star Pte. Ltd. Singapore (“SiCSem Star”) is
incorporated on November 10, 2025. SiCSem Star will
serve as a focused R&D and technology support platform
for the India manufacturing project.

It will Support advanced product design and process
optimisation, Develop next-generation SiC and compound
semiconductor technologies and facilitate collaborations
with leading Singapore research institutions.

Through the establishment of SiCSem Star, SiCSem aims
to enhance its technological capabilities, foster a culture
of innovation and strengthen its strategic growth initiatives
through the proposed investment in SiCSem Star.

Acume Chemicals Private Limited (Acume)

Acume Chemicals Private Limited, a wholly owned subsidiary
of the Company, was incorporated on November 18,
2021 and is engaged in the business of manufacturing
and marketing of specialty chemicals, including bromine
derivatives, marine chemicals and allied products.

During the year under review, Acume launched 5
in-organic derivatives and 1 organic derivative. It expanded
its marketing footprint by engaging with customers across
domestic and international markets for its specialty and fine
chemicals for applications in oil & gas, pharmaceuticals
intermediates and agrochemicals precursor segments. Its
key products received Global Approvals at Global MNCs
engaged in Oil & Gas Industry and Agrochemical Industry.
Acume's products are well accepted in Middle East Africa

region and India. It is also exploring opportunities in China
and Asia Pacific Region. One of its In-Organic Bromide also
received approval for use in batteries which will open newer
opportunities. With this Acume's revenue in FY 2025-26
quadruplicate compared to FY 2024-25. Acume also started
participating in Trade Shows promoting its products and
chemistry capabilities.

To solidify its standing with Global MNCs, Acume
also received Integrated Management Systems ISO
9001 (Quality), ISO 14001 (Environment), ISO 45001
(Occupational Health & Safety) Accreditation for its site. This
has enhanced formalization of its operational standards.
This unified framework simplifies audits and demonstrates
a commitment to the “Safety, Sustainability, and Innovation”
standards often required by global clients.

Going forward Acume will pursue the chemical industry's
“Responsible Care” certification to align with global
sustainability and safety benchmarks, a critical factor for
long-term approvals from large-scale agrochemical and
pharma partners.

During FY 2025-26, Acume also completed expansion of its
dedicated state-of-the-art R&D facility supported with latest
equipment and pilot facilities. Acume is also expanding its
sales team to ensure expansion of its product portfolio as
well as market reach.

PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS

Particulars of Loans, Guarantees or Investments covered
under the provisions of Section 186 of the Act are set out in
the notes to the financial statements.

CONTRACTS OR ARRANGEMENTS WITH RELATED
PARTIES

Particulars of the same as referred in Section 188(1) of
the Act, in the prescribed Form AOC-2 is enclosed as
Annexure III to the Board's Report.

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility is an integral part of the
Company's ethos and the Company remains committed
to conducting its business in a socially, economically and
environmentally sustainable manner.

In compliance with Section 135 of the Act, the Directors had
constituted a CSR Committee and adopted a CSR Policy, in
accordance with Schedule VII of the Act.

As on March 31, 2026, CSR Committee comprises of
Mr. S Meenakshisundaram, Chairperson, Mrs. Padma

Chandrasekaran, Member and Mr. P Ravi, Member. The
Committee is responsible for formulating, monitoring and
implementing the CSR policy of the Company.

The Annual Report on CSR activities as prescribed under
Companies (Corporate Social Responsibility Policy) Rules,
2014 is enclosed as Annexure IV to the Board's Report.

The Chief Financial Officer has certified that the CSR funds
disbursed during FY 2025-26 have been utilised for the
purposes and in the manner approved by the Directors.

The CSR Policy outlines, inter alia, the focus areas,
implementation mechanisms and governance framework
for undertaking CSR initiatives, and is available on the
Company's website.

In accordance with Section 135(4) of the Act, the major
contents of CSR policy are as follows:

Preamble: Corporate Social Responsibility (CSR) is the
affirmation that the Archean Chemical Industries Limited
is committed to its stakeholders to conduct its business
operations in an economically, socially and environmentally
sustainable manner.

Objectives: The objective of the CSR Policy is to:

a) To create positive and sustainable impact on society
and invest in improving lives of nearby community,

b) To engage with nearby community in identifying local
needs and requirements,

c) To identify opportunity and initiatives to enhance -
Social, Environmental and Economic Value to the
Society along with desired impact,

d) To Institute a process and a suitable mechanism for the
implementation and monitoring of the CSR activities.

Implementation Process:

The CSR initiatives shall be undertaken by the Company
as per its stated CSR Policy as Projects or Programs or
Activities (either new or ongoing).

The CSR activities may be undertaken directly by the
Company or through a registered trust or a registered
society or a Company/firm/foundation established by the
Company.

In addition to the above, CSR Policy also includes
composition of CSR Committee, meetings & quorum, duties
& responsibilities of CSR Committee/Board, CSR Activities/
expenditure/reporting etc., and the said policy is available
at the Company's website, at the following weblink:https://
www.archeanchemicals.com/investor-relations/admin/
assets/products/Corporate%20Social%20Responsibility%20
Policv.pdf.

RISK MANAGEMENT

Risk management is an integral part of the Company's
governance framework and is embedded in its business
processes.

In accordance with Regulation 21 of SEBI LODR, the Board
has constituted the Risk Management Committee. Details
of the composition, meetings and terms of reference of
the Committee are provided in the Corporate Governance
Report section of this Annual Report.

In accordance with Section 134(3)(n) of the Act and
Regulation 17(9) of SEBI LODR, the Company has developed
and implemented a Risk Management Policy aligned with
the industry in which it operates. The Policy envisages
identification of risk and procedures for assessment and
minimisation of risk thereof. The said policy is available at
the Company's website, at the following weblink:https://www.
archeanchemicals.com/investor-relations/admin/assets/
products/Risk%20Management%20Policv-02.05.2025.pdf.

The Company manages and monitors risks on a continuous
basis through a dynamic risk management framework,
commensurate with the size and nature of its operations.
The framework is periodically reviewed and updated to
align with changes in the business environment and the
Company's activities, enabling effective achievement of
both short-term and long-term strategic objectives.

In the opinion of the Board, there are no material risks
which may threaten the existence of the Company or its
operations.

INTERNAL FINANCIAL CONTROL SYSTEM

Your Company has established adequate internal financial
controls in accordance with Section 134(5)(e) of the Act,
commensurate with the size, scale and complexity of its
operations. The Audit Committee, comprising professionally
qualified Directors, periodically interacts with the Statutory
Auditor, Internal Auditor and the Management to review the
adequacy and effectiveness of the internal control systems.

The Management is responsible for establishing and
maintaining internal controls over financial reporting.
The Statutory Auditor have evaluated the adequacy
and operating effectiveness of the Company's internal
financial controls and have confirmed that the same are
commensurate with the size and nature of the Company's
business. They have also reviewed the internal controls
pertaining to financial reporting of the Company to ensure
that financial statements of the Company present a true and
fair view of the state of affairs of the Company. The Statutory
Auditor have further opined that the Company had, in all

material respects, adequate internal financial controls over
financial reporting and that such controls were operating
effectively as on March 31, 2026.

The Internal Auditor periodically review the adequacy
and effectiveness of the internal control framework, and
summaries of significant audit observations, together with
status of implementation of corrective actions and risk
mitigation measures, are placed before the Audit Committee
on a quarterly basis. Residual risks, if any, are appropriately
escalated to the Board.

Based on the internal financial control framework
established by the Company, audit processes carried out
by the internal, statutory, cost and secretarial Auditor, and
the reviews undertaken by the Management and the Audit
Committee, the Board is of the opinion that the Company's
internal financial controls were adequate and effective
during FY 2025-26.

VIGIL MECHANISM/WHISTLE BLOWER POLICY

Pursuant to provisions of Section 177(9) of the Act, read
with Rule 7 of the Companies (Meetings of Board and its
Powers) Rules, 2014 and Regulation 22 of the SEBI LODR,
your Company has adopted a Whistle Blower Policy on
Vigil Mechanism which provides a formal mechanism for
all Directors, Employees and other Stakeholders of the
Company to report their genuine concerns or grievances
about unethical behaviour, actual or suspected fraud and
any violation of the Company's Code of Business Conduct
and Ethics.

The Policy provides for adequate safeguards against
victimisation of persons who use such mechanism and
also provides direct access to the Chairperson of the Audit
Committee in appropriate cases.

Brief details about the policy are provided in the Corporate
Governance section of this Annual Report.

The Policy is available on the website of the Company
at:https://www.archeanchemicals.com/investor-relations/
admin/assets/products/Whistle%20Blower%20and%20
Vigil%20Mechanism%20Policv.pdf.

RELATED PARTY TRANSACTIONS

Your Company has formulated a policy on Related Party
Transactions (RPT). During the year, same has been
reviewed, amended and approved by the Audit Committee
& Board in its meeting held on February 04, 2026, which
is available on the Company's website at https://www.
archeanchemicals.com/investor-relations/admin/assets/
products/RPT%20Policy%2004.02.2026.pdf.

STATUTORY AUDITOR

In accordance with section 139 of the Act, read with the
Companies (Audit and Auditor) Rules, 2014, the Members of
the Company at the 12^th AGM, approved the appointment of
M/s PKF Sridhar & Santhanam LLP, Chartered Accountants
(Firm Registration Number: 003990S/S200018), as the
Statutory Auditor of the Company for a term of Five (5)
consecutive years i.e. from the conclusion of 12^th AGM till
the conclusion of the 17^th AGM of the Company, to be held
in the FY 2026-27.

Based on the recommendation of the Audit Committee, and
considering, inter alia, the experience, expertise, industry
understanding, audit quality, independence, peer review
status and continuity in the audit process, the Directors has
recommended the re-appointment of M/s. PKF Sridhar &
Santhanam LLP, Chartered Accountants, as the Statutory
Auditor of the Company for a second term of four (4)
consecutive years, within the overall tenure permissible
under the applicable provisions of the Act, commencing

from the conclusion of the 17^th AGM until the conclusion of
the 21^st AGM of the Company, subject to approval of the
Members at the ensuing AGM, at such remuneration as may
be mutually agreed between the Directors and the Statutory
Auditor, in addition to applicable taxes and reimbursement
of out-of-pocket expenses.

Pursuant to Sections 139 and 141 of the Act and the
applicable Rules framed thereunder, the Company has
received written consent and a certificate from the Statutory
Auditor confirming that their re-appointment, if approved,
would be in accordance with the provisions of the Act and
that they satisfy the eligibility criteria prescribed thereunder.
The Statutory Auditor also hold a valid Peer Review
Certificate issued by the Peer Review Board of the Institute
of Chartered Accountants of India (“ICAI”).

Details of remuneration paid to the Statutory Auditor are
disclosed in the Corporate Governance Report forming part
of this Annual Report.

COST AUDITOR

In accordance with Section 148 of the Act read with the
Companies (Cost Records and Audit) Rules, 2014, the
Directors, based on the recommendation of the Audit
Committee, has re-appointed Mr. G. Sundaresan, Cost
Accountant, as the Cost Auditor of the Company for the FY
2026-27.

The remuneration payable to the Cost Auditor is subject to
ratification by the Members at the ensuing AGM.

The Company has received consent and eligibility certificate
from the Cost Auditor confirming that his appointment is in
accordance with the applicable provisions of the Act and
that he is not disqualified under Section 141 of the Act. The
Cost Auditor has also confirmed his independence and
arm's length relationship with the Company.

Pursuant to Section 148 of the Act, the Company is required
to maintain cost records and accounts, and accordingly
such records and accounts are made and maintained by
the Company. The Cost Audit Report for the financial year
under review will be filed with the Central Government
within the prescribed timelines.

SECRETARIAL AUDITOR

In accordance with Section 204 of the Act, read with
Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, and Regulation 24A SEBI LODR
read with SEBI LODR (Third Amendment) Regulations, the
Members of the Company at the 16^th AGM approved the
appointment of HVS & Associates, peer reviewed Practicing
Company Secretaries (FCS NO: 10974), Chennai as
Secretarial Auditor of the Company for a period of 5 years
from FY 2025-26 to FY 2029-30.

The Company has obtained a certificate from the Secretarial
Auditor affirming their eligibility to remain in their role as
Auditor. Additionally, the Auditor have verified that they have
participated in the peer review process and possess a valid
certificate issued by the Peer Review Board of the Institute
of Company Secretaries of India (“ICSI”).

COMMENTS ON AUDITOR' REPORT

The Statutory Auditor, Secretarial auditor and Internal
Auditor of the Company have not reported any fraud
to the Audit Committee or to the Directors during the year
under Section 143(12) of the Act, read with rules made
thereunder.

There were no qualifications, reservations, adverse
remarks or disclaimers made by the Statutory Auditor and
the Secretarial Auditor in their respective reports.

The Statutory Audit Report in the prescribed format issued
by Statutory Auditor is provided in this Annual Report. The
Secretarial Auditor's Report in the prescribed format issued
by the Secretarial Auditor is enclosed as Annexure V to the
Board's Report.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The particulars relating to Conservation of Energy,
Technology Absorption and Foreign Exchange Earnings
and Outgo, as required under Section 134(3) of the Act,
read with Rule 8(3) of the Companies (Accounts) Rules,
2014 are enclosed as Annexure VI to the Boards Report.

MANAGEMENT DISCUSSION AND ANALYSIS

In accordance with Regulation 34 of SEBI LODR, the
Management Discussion and Analysis (MDNA) Report is
set out in this Annual Report.

CORPORATE GOVERNANCE

Your Company is committed to maintaining the highest
standards of corporate governance and believes that
sound governance practices are essential for enhancing
long-term shareholder value and protecting the interests of
all stakeholders.

In accordance with Regulation 34 (3) read with Schedule V
(C) of the SEBI LODR, a report on Corporate Governance
is set out in this report.

The requisite certificate from the Statutory Auditor confirming
compliance with the conditions of Corporate Governance,
as stipulated under Schedule V(E) of the SEBI LODR, is
annexed to the Corporate Governance Report.

All the Directors and Senior Management Personnel have
affirmed compliance with the Code of Conduct adopted by
the Company.

BUSINESS RESPONSIBILITY AND SUSTAINABILITY

As per Regulation 34(2)(f) of the SEBI LODR, the top one
thousand listed entities based on market capitalisation
are required to include a Business Responsibility and
Sustainability Report (“BRSR”) as part of their Annual
Report.

For the FY ended March 31, 2026, the Company falls
within the top one thousand listed entities based on market
capitalisation on BSE Limited and National Stock Exchange
of India Limited.

The BRSR contains disclosures on the Company's
environmental, social and governance initiatives and
performance against the nine principles of the National

Guidelines on Responsible Business Conduct (“NGRBC”).
The Company continues to undertake various sustainability
and responsible business initiatives in line with its Business
Responsibility and Sustainability Policy.

The BRSR in terms of above regulation for FY 2025-26 is
set out in this report.

ANNUAL RETURN

In accordance with Section 92(3) read with section 134(3)
(a) of the Act, the Annual Return of the Company is
available on the website of the Company athttps://www.
archeanchemicals.com/investor-relations/annual-report.
php?id=MTY5.

The annual return hosted on the website is subject to filing
with the Ministry of Corporate Affairs (“MCA”) and the final
version, upon filing, shall continue to remain available at the
same location on the Company's website.

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR
EDUCATION & PROTECTION FUND

In accordance with Sections 124 and 125 of the Act, read
with the Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016
(“IEPF Rules”), dividends remaining unpaid or unclaimed
for a period of seven consecutive years are required to be
transferred to the Investor Education and Protection Fund
(“IEPF”) established by the Central Government.

Further, in accordance with the IEPF Rules, shares in
respect of which dividend has remained unpaid or unclaimed
for seven consecutive years or more are also required to be
transferred to the demat account of the IEPF Authority.

During FY 2025-26, there were no amounts or shares
required to be transferred by the Company to the IEPF

CODE OF CONDUCT

All the Directors and Senior Management Personnel have
affirmed compliance with the Code of Conduct adopted by
the Company. A declaration to this effect, signed by the
Managing Director, is set out in this report.

MANAGING DIRECTOR/CHIEF FINANCIAL OFFICER
CERTIFICATE

The certificate issued by the Managing Director and the
Chief Financial Officer as stipulated under Regulation 17
(8) read with Part B of Schedule II of SEBI LODR is set out
in this report.

COMPLIANCE WITH MATERNITY BENEFIT ACT 1961

The Company has complied with the applicable provisions
of the Maternity Benefit Act, 1961 and the rules made
thereunder.

COMPLIANCE WITH SECRETARIAL STANDARDS

The Company has complied with applicable Secretarial
Standards issued by ICSI.

OTHER DISCLOSURES

Your Directors state that disclosure or reporting in respect
of the following matters is not applicable/not required, as
there were no transactions or events during the year under
review:

1. Proceedings under Insolvency and Bankruptcy
Code 2016: No application was made, nor were any
proceedings pending against the Company under the
Insolvency and Bankruptcy Code, 2016 during the
year under review.

2. Deposits: The Company has not accepted any deposit
from the public within the meaning of Section 76 of the
Act, for the year ended March 31,2026.

3. Significant and Material Orders: No significant
or material orders were passed by any Regulators,
Courts or Tribunals impacting the going concern status
of the Company or its future operations.

4. Change in the nature of business, if any: No change
in the nature of business of the Company during the
year under review.

5. Material changes and commitments: No material
changes and commitments affecting the financial
position of the Company occurred between April 01,
2026, and the date of this report.

6. Shares with differential rights: The Company has
not issued any equity shares with differential rights as
to dividend, voting or otherwise during FY 2025-26.

7. Sweat Equity Shares: The Company has not issued
any shares (including Sweat Equity Shares) to
employees of the Company under any Scheme during
FY 2025-26.

8. One time settlement with Banks: The Company has
not entered into any one-time settlement for loans
taken from the Banks or Financial Institutions during
FY 2025-26.

9. Revision in the financial statements and Boards
Report: No revision of the Financial Statements or the
Board's Report during the year under review.

ACKNOWLEDGEMENTS

The Directors places on record its sincere appreciation for the continued support and cooperation extended by Banks,
Financial Institutions, customers, vendors, business associates, regulatory authorities, bankers and other stakeholders.

The Directors also acknowledge with gratitude the dedication, commitment and contribution of the employees at all levels,
whose continued efforts have significantly contributed to the Company's performance and growth.

The Board expresses its gratitude to the members for their continued confidence, trust and support.

For and on behalf of the Board of Directors

Rampraveen Swaminathan P Ranjit

Date: May 11, 2026 Managing Director Executive Vice Chairman (WTD)

Place: Chennai DIN: 01300682 DIN: 01952929