DIRECTORS' REPORT

For the financial year ended March 31,2026, the Company
reported a Total Income of ' 2,05,314.93 lakhs as against
' 1,49,734.59 lakhs in the previous year.

For the year ended on March 31, 2026, the Company
reported Earnings Before Interest, Finance Cost,
Depreciation and Amortisation and Tax (EBIDTA) of
' 60,340.90 lakhs, as against EBIDTA of ' 34,280.75 lakhs
during the previous year.

The Net Profit of the Company for the year ended March
31,2026 was ' 36,310.50 lakhs compared to ' 25,942.54
lakhs during the previous year.

BUSINESS REVIEW

During the year under review, your Company has made
significant strides in creating a strong base for the future.
The Company's CMS business showed robust growth on
the back of the commercial molecules even as the seeds
for long-term growth were laid through new projects. The
momentum in the business is seen in the decision to move
to a new R&D facility ensuring attractiveness to the full
range of potential clients. The other key capital expenditure
project driving long-term growth is the Peptides block

where progress is being made in accordance with the plan.
While the GDS business has seen a dip this year due to
the performance of a few key products, the Company has
undertaken actions to make the business a reliable source
of sustainable long-term growth. The planned strengthening
of the Project Management function has given the Company
better visibility on planning and execution of CMS projects.
During the course of the year, the Company has put into
effect its plan to create a better structure for accountability
as well as creating management bandwidth for crucial long¬
term planning.

During FY 2025-26, the Company further strengthened
its commitment to robust governance, sustainability and
environmental stewardship through continued focus on
Enterprise Risk Management (ERM) and the Environmental,
Social and Governance (ESG) agenda under the oversight of
the Risk and Sustainability Committee of the Board. During
the year, the Company sharpened its ESG governance and
execution through structured reviews and cross-functional
ownership of key initiatives, including progress on climate-
related disclosures and resilience planning. The Company
also continued to improve its performance as assessed by
external sustainability rating agencies. In parallel, capability

building remained aligned to strategic priorities and
anticipated business needs, with increasing emphasis on
strengthening people capabilities, deepening the leadership
and talent pipeline, and building organisational capacity for
long-term growth.

DIVIDEND

Your directors are pleased to recommend a final dividend
of ' 34/- (340%) per equity share of face value of ' 10/-
each of the Company, for the financial year ended March
31,2026. The final dividend, if approved at the 42^nd Annual
General Meeting, will be paid to members within the period
stipulated under the Companies Act, 2013 ('the Act'), as
amended from time to time. The outflow on account of final
dividend is estimated to be ' 4,362.16 lakhs.

In terms of Regulation 43A of the Securities and Exchange
Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (SEBI Listing Regulations),
the dividend distribution policy, is available on the
Company's website at -https://www.neulandlabs.com/
sites/neulandlabs/files/neuland-labs/Investors/corporate-
governance/policies-and-documents/dividend-distribution-
policy.pdf

SHARE CAPITAL

The equity shares of your Company continue to be listed
and traded on the BSE Limited and National Stock Exchange
of India Limited. The paid-up equity share capital of the
Company as on March 31, 2026 was ' 1,290.05 lakhs.
During the year under review, the Company has not issued
any shares with differential voting rights nor granted stock
options nor sweat equity.

OUTLOOK

The Company is continuing to evolve at a sustainable pace
to ensure long-term growth and deliver through execution
of the significant business that has been built over the
years. Even as the current environment seems uncertain, the
Company's planning and execution should ensure that the
long-term objectives are met consistently even as newer
avenues are explored. The Company is actively working on
plans to broaden the customer base by engaging with Big
Pharma, based on the investment in enhanced capabilities.
With a sharper focus on quality, reliability, sustainability and
execution excellence across the value chain, the Company
aims to create long-term value for all stakeholders and

strengthen its position as a preferred partner enabling a
healthier world.

CONSOLIDATED FINANCIAL STATEMENTS

The Audited Consolidated Financial Statements of your
Company as on March 31, 2026, which forms part of the
Integrated Annual Report, have been prepared pursuant to
the provisions of the SEBI Listing Regulations as amended
from time to time, and also in accordance with the applicable
Indian Accounting Standard (IndAS) on Consolidated
Financial Statements (IndAS-110) as notified by the Ministry
of Corporate Affairs.

The annual accounts of the subsidiary companies are kept
for inspection by any member at the Registered Office of the
Company as well as at the Registered Office of the respective
subsidiary companies and also available on the website of
the Company, https://www.neulandlabs.com/en/investors/
financials-and-reports/subsidiary-financials. Any member
interested in a copy of the accounts of the subsidiaries may
write to the Company Secretary at the Registered Office of
the Company.

SUBSIDIARIES

Your Company has two subsidiaries, Neuland Laboratories
K.K., Japan, and Neuland Laboratories Inc., USA, working on
market development. Your Company does not have any joint
venture or associate companies. Further, there has been no
material change in the nature of business of the subsidiaries.

A report on the performance and financial position of the
subsidiaries, set out in the prescribed form AOC-1, in terms
of the proviso to sub-section (3) of Section 129 of the Act,
as amended from time to time, is provided as Annexure
to the consolidated financial statements and hence not
repeated here.

CORPORATE GOVERNANCE REPORT,
MANAGEMENT DISCUSSION & ANALYSIS AND
OTHER INFORMATION REQUIRED UNDER THE
COMPANIES ACT, 2013 AND SEBI LISTING
REGULATIONS

As per the Act and the SEBI Listing Regulations, as amended
from time to time, Corporate Governance Report and
Management Discussion and Analysis report are attached
and forms part of this report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL
Appointments

During the year, the members of the Company vide their
Postal Ballot resolution dated September 26, 2025, approved
the appointment of Dr. Ravi Gopinath as Independent
Director of the Company, with effect from August 1, 2025.
The Board opined that the above Independent Director
possessed requisite experience and expertise (including the
proficiency). Further, the Board at its meeting held on May
12, 2026, based on the recommendation of the Nomination
and Remuneration Committee, approved the appointment
of Dr. Mauricio Futran (DIN: 11699767) as an Additional
Director of the Company in the category of Non-Executive
Non-Independent Director, with effect from May 12, 2026,
subject to approval of the Members at the ensuing Annual
General Meeting.

Cessation

Dr. Christopher M Cimarusti, Non-Executive Non¬
Independent Director (DIN: 02872948), ceased to be a
Director of the Company with effect from February 28,
2026, on account of his sad demise.

The Board places on record its profound sorrow on the
demise of Dr. Christopher M Cimarusti, who served
the Company with distinction as a Non-Executive Non¬
Independent Director since 2009 and as a member of its
Scientific Advisory Board. The Board, management, and the
employees, especially those in the Research & Development,
deeply valued his outstanding scientific leadership, insight,
mentorship, and unwavering commitment to innovation.
Dr. Cimarusti's contributions to advancing the Company's
scientific capabilities and strengthening its culture of
research excellence have left an enduring legacy that will
continue to inspire the organization.

Appointment of Directors

The Board of Directors on the recommendation of the
Nomination and Remuneration Committee, have approved
the following, subject to the approval of the members sought
in the Notice of the Forty-Second Annual General Meeting:

• Appointment of Dr. Mauricio Futran (DIN: 11699767)
as a Director of the Company, categorized as Non¬
Executive Non-Independent Director.

Retirement by Rotation

Pursuant to the provisions of Section 152(6)(d) of the Act
read with the Companies (Appointment and Qualification of
Directors) Rules, 2014, and the Articles of Association of the

Company, Dr. Davuluri Rama Mohan Rao (DIN: 00107737)
will retire by rotation at the ensuing Annual General Meeting
and, being eligible, has offered himself for re-appointment.
The Board recommends his re-appointment in the ensuing
AGM of the Company.

Change in designation of Whole-time Directors

During the year, the members of the Company vide Postal
Ballot resolutions dated November 5, 2025, approved
the a) re-designation of Mr. Davuluri Sucheth Rao (DIN:
00108880) as Executive Vice Chairman; and 2) re¬
designation of Mr. Davuluri Saharsh Rao (DIN: 02753145)
as Chief Executive Officer & Managing Director, effective
from April 1, 2026.

Changes in Key Managerial Personnel (KMP)

During the year under review, there were no changes to the
Key Managerial Personnel of the Company. As on the date of
this report, the Company has the following Key Managerial
Personnel as per Sections 2(51) and 203 of the Act:

Listing at Stock Exchanges

The equity shares of your Company continue to be listed
and traded on the BSE Limited and National Stock Exchange
of India Limited. The Annual Listing fee for the year 2026-27
has been paid to both the stock exchanges.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(3)(c) of the Companies Act, 2013,
as amended from time to time, your directors confirm that
to the best of their knowledge and belief and according to
the information and explanation obtained by them:

a. in the preparation of the annual financial statements
for the year ended March 31, 2026, the applicable
accounting standards have been followed, along with
proper explanation relating to material departures,
if any;

b. such accounting policies as mentioned in the Notes
to the Financial Statements have been selected and
applied consistently and judgements and estimates
have been made that are reasonable and prudent so
as to give a true and fair view of the state of affairs of
the Company as at March 31, 2026 and of the profit
of the Company for the year ended on that date;

c. proper and sufficient care has been taken for the
maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
2013, as amended from time to time, for safeguarding
the assets of the Company and for preventing and
detecting fraud and other irregularities;

d. the annual financial statements have been prepared on
a going concern basis;

e. proper internal financial controls were in place and
that the financial controls were adequate and were
operating effectively; and

f. systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and
operating effectively.

BOARD MEETINGS

During the year under review, nine Board Meetings were
convened and held, the details of which are given in the
Corporate Governance Report, which forms part of this
report. The intervening gap between the meetings was
within the period prescribed under the Act, and the SEBI
Listing Regulations, as amended from time to time.

COMPOSITION OF VARIOUS COMMITTEES

Details of various committees constituted by the Board as
per the provisions of the Act and the SEBI Listing Regulations,
as amended from time to time, and their meetings are given
in the Corporate Governance Report, which forms part of
this report.

BOARD EVALUATION

Pursuant to the provisions of the Act and SEBI Listing
Regulations, the annual evaluation of the performance of
the Board, its Committees and of individual directors has

been carried out by the Board. The process was carried out
by circulating questionnaires on the Board and Committees
functioning on certain parameters. The performance
evaluation of the Independent Directors was carried out by
the entire Board, except for the director being evaluated.
The performance evaluation of the non-Independent
Directors, including Executive Directors, was carried out by
the Independent Directors.

INDEPENDENT DIRECTORS

The Independent Directors met on February 10, 2026,
without the presence of non-Independent Directors and
members of the management. The Independent Directors,
inter alia, discussed matters pertaining to the Company's
affairs and reviewed the performance of non-Independent
Directors, the Chairman and the Board as a whole, and
assessed the quality, quantity and timeliness of flow of
information between the Company management and the
Board that is necessary for the Board to effectively and
reasonably perform their duties.

The Company has received declarations from all the
Independent Directors of the Company confirming that they
meet the criteria of independence prescribed under the Act
and the SEBI Listing Regulations, as amended from time to
time. All the Independent Directors are registered with the
Independent Director's databank and requisite disclosures
have been received from them in this regard. Further,
they have affirmed compliance with the code of conduct
for Independent Directors as prescribed in Schedule IV
of the Act. The terms and conditions of appointment
of Independent Directors is available on the website of
the Company.

DISCLOSURES BY DIRECTORS

None of the directors of your Company is disqualified as per
the provisions of Section 164(2) of the Act. Your directors
have made necessary disclosures to this effect as required
under the Act.

AUDIT COMMITTEE

During the year under review, four Audit Committee Meetings
were convened and held. The details of the committee
meetings and composition of the Audit Committee, and its
terms of reference are included in the Report on Corporate

Governance annexed. All the recommendations made by the
Audit Committee were accepted by the Board of Directors.

NOMINATION AND REMUNERATION COMMITTEE

The Nomination and Remuneration Policy of the Company
includes Board Diversity as part of the policy and is
available on the website of the Company athttps://www.
neulandlabs.com/sites/neulandlabs/files/neuland-labs/
Investors/corporate-governance/policies-and-documents/
NominationandRemuerationPolicy22042025.pdf. The
policy covers selection and appointment of Directors,
Key Managerial Personnel, Senior Management and
their remuneration, including criteria for determining
qualifications, positive attributes, independence of a
director and other matters provided under Section 178(3)
of the Act and the SEBI Listing Regulations.

CORPORATE SOCIAL RESPONSIBILITY

The Company has in place a Corporate Social Responsibility
Policy which is available on the website of the Company
athttps://www.neulandlabs.com/sites/neulandlabs/files/
neuland-labs/Investors/corporate-governance/policies-
and-documents/corporate-social-responsibility-csr-policy.
pdf. The CSR expenditure of the Company for FY 2025-26
as per Section 135 of the Act and the Companies (Corporate
Social Responsibility Policy) Rules 2014, as amended from
time to time, was ' 608.99 lakhs. After setting-off ' 33.52
lakhs from the excess CSR expenditure spent for FY 2024¬
25 the Company's total CSR obligation for FY 2025-26 was
' 575.47 lakhs.

The Company has spent an amount of ' 561.64 lakhs
towards CSR projects and administrative overheads for
FY 2025-26. In addition, an amount of ' 13.83 lakhs was
transferred to the Unspent account, in April 2026, towards
identified and ongoing CSR projects for FY 2025-26, due
for completion in FY 2026-27.

The total CSR expenditure for FY 2025-26 was ' 608.99
lakhs, which includes CSR projects spend, administrative
expenditure, and amount transferred to the Unspent
CSR account.

The annual report on CSR activities, as required under Rule
8 of the Companies (Corporate Social Responsibility Policy)
Rules, 2014 read with Section 134(3) and 135(2) of the Act,
has been appended as Annexure-1 and forms an integral
part of this Report.

INTEGRATED REPORT

The Company continues its integrated reporting journey
in the current financial year. This is the third year of the
publication of the Integrated Annual Report of the Company
in line with the Integrated Reporting Framework, now part
of the IFRS Foundation.

The Global Reporting Initiative disclosures reported in this
Integrated Annual Report have been subject to limited
assurance. The Assurance Report issued by BDO India
Services Private Limited has been annexed to this Integrated
Annual Report.

The Integrated Annual Report consists of both financial
and non-financial information to demonstrate how various
'capitals' are utilised to create value, thereby enabling
stakeholders to make informed decisions and gain a
comprehensive understanding of the Company's long-term
perspective and value creation for all stakeholders.

The Board acknowledges its responsibility for the integrity
of the report and the information contained therein.

BUSINESS RESPONSIBILITY AND SUSTAINABILITY
REPORT

In accordance with Regulation 34(2)(f) of the SEBI Listing
Regulations, the Business Responsibility and Sustainability
Report (BRSR), forms part of this report as Annexure-2.

CODE OF CONDUCT FOR BOARD OF DIRECTORS
AND SENIOR MANAGEMENT PERSONNEL

The directors and members of senior management have
affirmed compliance with the Code of Conduct for Board
of Directors and Senior Management Personnel of the
Company. A declaration to this effect by the Chief Executive
Officer & Managing Director, forms part of this Report.

VIGIL MECHANISM/ WHISTLE BLOWER POLICY

Your Company has a Vigil Mechanism/Whistle Blower Policy
which serves as a mechanism for its directors, employees
and stakeholders to report genuine concerns about
unethical behaviour, actual or suspected fraud or violation
of the Code of Conduct without fear of reprisal. Audit
Committee of the Company oversees the implementation
of the Whistle Blower Policy. During the year, the Company
has not received any protected disclosures. The Whistle
Blower Policy is available on the website of the Company,
athttps://www.neulandlabs.com/en/investors/corporate-
governance/policies-and-documents. A brief note on the
Whistle Blower Policy is also provided in the Report on
Corporate Governance, which forms part of this Report.

PROHIBITION OF INSIDER TRADING

Pursuant to the Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015, as
amended, the Company has adopted the Code of Internal
Procedures and Conduct for Regulating, Monitoring and
Reporting of Trading by Designated Persons and their
Immediate Relatives along with the Code of Fair Disclosures.
Periodically, insider trading awareness sessions are
conducted for the benefit of designated persons. Trading
window closures, when the designated persons are not
permitted to trade in the securities of the Company, are
intimated in advance to all concerned.

DISCLOSURE AS PER SEXUAL HARASSMENT
OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013

The Company is committed to ensure that there is no scope
for sexual harassment at the workplace and has adopted
a policy on prevention, prohibition and redressal of sexual
harassment at the workplace in line with the provisions of
the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and the rules framed
thereunder. The Company has not received any complaints
on sexual harassment during the year under review and as
on the date of this report.

EMPLOYEE STOCK OPTION SCHEME

As on March 31,2026, there are no employee stock options
available in the Company, and hence, no disclosures are
required to be made under Regulation 14 of the Securities
and Exchange Board of India (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021.

STATUTORY AUDITORS

M/s. M S K A & Associates LLP (Formerly known as M S K A
& Associates), (Firm Registration No: 105047W/W101187),
Chartered Accountants, were re-appointed as the Statutory
Auditors of the Company at the 40^th AGM of the Company
held on July 31, 2024, to hold the office till the conclusion
of the 45^th AGM to be held in the year 2029.

AUDITORS' REPORT

There are no qualifications, reservations or adverse remarks
made by M/s. M S K A & Associates LLP (Formerly known as
M S K A & Associates), Statutory Auditors, in their report for
the financial year ended March 31,2026.

Pursuant to the provisions of Section 143(12) of the Act,
the Statutory Auditors have not reported any incident of
fraud to the Audit Committee during the year under review.

SECRETARIAL AUDIT

M/s. P.S. Rao & Associates, a firm of Company Secretaries
in Practice, were appointed as the Secretarial Auditors of
the Company at the 41^st AGM of the Company held on July
30, 2025, for a term of five consecutive financial years
commencing from April 1, 2025, till March 31,2030.

The report of the Secretarial Audit for the financial year
ended March 31, 2026, is annexed to the Corporate
Governance Report and forms part of this report. There are
no qualifications, reservations or adverse remarks made by
the Secretarial Auditor in their report.

COST AUDITORS

In terms of Section 148(1) of the Act, read with the relevant
Rules made thereunder, the Company maintains the cost
records in respect of its pharmaceuticals business.

Pursuant to Section 148 of the Act read with the Companies
(Cost Records and Audit) Amendment Rules, 2014, as
amended from time to time, subject to the approval of the
Central Government, if required, the Audit Committee has
recommended, and the Board of Directors has appointed
M/s. Nageswara Rao & Co. (Registration No. 000332), Cost
Accountants, Hyderabad, being eligible and having sought
re-appointment, as Cost Auditors of the Company, to carry
out the cost audit of the products manufactured by the
Company during the FY 2026-27.

REPORTING OF FRAUD

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

INSURANCE

Your Company has taken necessary steps to mitigate
risks and obtained appropriate insurances, and the Board
is kept appraised of the risk assessment and minimisation
procedures. The assets of the Company have been
adequately covered under insurance. The policy values
have been determined taking into consideration the value
of the assets of the Company.

MATERIAL CHANGES

There have been no material changes and commitments
affecting the financial position of the Company between
the end of the financial year of the Company to which
the financial statements relate and the date of the report.
Further, it is hereby confirmed that there has been no
change in the nature of business of the Company.

ENERGY CONSERVATION, TECHNOLOGY
ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO

The information on conservation of energy, technology
absorption and foreign exchange earnings and outgo
stipulated under Section 134(3)(m) of the Act read with Rule
8 of the Companies (Accounts) Rules, 2014, as amended
from time to time, is annexed herewith as Annexure-3.

ANNUAL RETURN

Pursuant to Section 92 and Section 134 of the Act, the Annual
Return as on March 31, 2026, in form MGT-7 is available
on the website of the Company at www.neulandlabs.com.

PARTICULARS OF EMPLOYEES AND RELATED
DISCLOSURES

The information relating to remuneration and other details
as required pursuant to Section 197 of the Act read with

Rule 5(1) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, as amended, is
provided as Annexure-4 to this report.

In terms of the provisions of Section 197 of the Act read
with Rules 5(2) and 5(3) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014,
as amended, a statement showing the names and other
particulars of the employees drawing remuneration in
excess of the limits set out in the said rules is provided in
the Annual Report, which forms part of this Report.

Pursuant to the provisions of the first proviso to Section
136(1) of the Act, the Annual Report is being sent to the
members and other persons entitled thereto, excluding
the information in respect of employees of the Company
containing the particulars as specified in Rule 5(2) of the
said Rules. The said information is available for inspection
on all working days, during business hours, at the Registered
Office of the Company up to the date of the ensuing Annual
General Meeting. Any member interested in obtaining such
information may write to the Company Secretary, and the
same will be furnished on request.

RELATED PARTY TRANSACTIONS

All contracts/arrangements/transactions with the related
parties during the financial year were in the ordinary course
of business and at an arm's length basis.

During the year, the Company has not entered into any
contract or arrangement with related parties which could
be considered material in accordance with the policy of
the Company on materiality of related party transactions.
Further, there were no materially significant related party
transactions which could have potential conflict with
interest of the Company at large.

The Policy on Materiality of Related Party Transactions and
on dealing with Related Party Transactions as approved
by the Board may be accessed on the Company's website
athttps://www.neulandlabs.com/en/investors/corporate-
governance/policies-and-documents.

The particulars of transactions with related parties in the
prescribed format is annexed to this report, as Annexure-5.
Members may refer to Note No. 38 to the standalone
financial statements which sets out related party disclosures
pursuant to Ind AS.

PARTICULARS OF LOANS, GUARANTEES AND
INVESTMENTS

During the year, the Company has not given any loans
and guarantees under Section 186 of the Act, and the
investments made by the Company are in compliance with
the provisions of Section 186 of the Act.

DEPOSITS FROM PUBLIC

The Company has not accepted any deposits from the
public and, as such, no amount of principal or interest on
deposits from the public was outstanding as on the date of
the Balance Sheet.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY
THE REGULATORS OR COURTS

There are no significant and material orders passed by the
Regulators/Courts which would impact the going concern
status of the Company and its future operations.

TRANSFER TO RESERVES

No amount was proposed to be transferred to the general
reserve during the FY 2025-26.

RISK MANAGEMENT

The Risk & Sustainability Committee of the Board oversees
the Company's processes for determining risk tolerance and
reviews management's actions and comparison of overall
risk tolerance to established levels. The Company has in
place a Risk Management Policy, which outlines the risk
management process and framework for the identification
and management of risks. The framework is designed
to enable risks, to be identified, assessed and mitigated
appropriately. There are no risks which in the opinion of
the Board, threaten the existence of the Company. Major
risks identified by the businesses and functions are
systematically addressed through appropriate actions
on a continuous basis. For details, please refer to the
Management Discussion and Analysis report which forms
part of this Report.

INTERNAL FINANCIAL CONTROLS

Internal Financial Controls are an integral part of the risk
management process, addressing financial and financial
reporting risks. The internal financial controls have been
embedded and documented in the business processes.
The controls in place include essential components of
internal financial controls required under the Act, and also
the internal financial controls over financial reporting as
per the Guidance Note on Audit of Internal Controls over
Financial Reporting as issued by the Institute of Chartered
Accountants of India.

Assurance on the effectiveness of internal financial controls
is obtained through management reviews, continuous
monitoring by functional owners, as well as testing of the
internal financial control systems by the internal auditors
during the course of their audits. We believe that these
systems provide reasonable assurance that our internal
financial controls are designed effectively and are operating
as intended.

The Company has in place adequate internal financial
controls with reference to the financial statements. During
the year under review such controls were tested and no
reportable material weakness in the design or operation
were observed.

HUMAN RESOURCES & INDUSTRIAL RELATIONS

Your Company's relations with its employees continue to be
cordial. Dedicated work by the workmen, supervisors, and
executives of your Company made it possible to achieve
success under trying and difficult circumstances.

BOARD RESPONSIBILITY STATEMENT

The data and disclosures in the Report have been reviewed
internally by the management to ensure completeness and
relevance. The Board believes that this Report is a fair
representation of the Company's financial, non-financial,
sustainability, and operational performance and addresses
all material topics relevant to the Company for FY 2025-26.
The Board notes that the contents of this Report have been
prepared by the respective functions and businesses under
the guidance of the senior management.

OTHER DISCLOSURES

During the year under review:

a. No credit rating has been obtained by the Company
with respect to its securities. Further, the details of the
credit rating obtained by the Company with respect
to its long-term and short-term borrowings have been
provided in the Corporate Governance Report, which
forms part of this report.

b. No application has been made under the Insolvency
and Bankruptcy Code, 2016 (IBC). Further, there are
no proceedings admitted against the Company under
the IBC.

c. The Company is in compliance with the Maternity
Benefit Act, 1961.

d. During the year, there was no one-time settlement
done with the Banks or Financial Institutions.

e. Disclosures included in the the Corporate Governance
report & Business Responsibility and Sustainability
Report of this report are not included in the
Boards Report.

ACKNOWLEDGEMENT

Your Board of Directors take this opportunity to thank all
its stakeholders, including banks, financial institutions,
business partners, government and other statutory bodies,
regulatory authorities, analysts and members for their
continued support and valuable cooperation. The Board of
Directors also wish to place on record its deep sense of
appreciation for the committed services by the Company's
employees at all levels.

For and on behalf of the Board

Dr. Davuluri Rama Mohan Rao

Place: Hyderabad Executive Chairman

Date: May 12, 2026 (DIN: 00107737)