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Your Company's Directors are pleased to present the 53rd Annual Report of the Company together with the
Statement of Audited Accounts for the financial year ended 31st March, 2026.

FINANCIAL RESULTS (^ in Lakhs)

REVIEW OF OPERATIONS

The Company recorded total income of ^387.22 crores as compared to ^385.81 crores in the previous year. The
Company achieved a Profit after Tax for the year of ^(2.26) crores as against ^3.33 crores in the previous year. The
loss is primarily attributable to Tax credit reversal of ^ 2.79 crore.

DIVIDEND

The Board of Directors do not recommend any dividend for the financial year ended March 31, 2026.

Pursuant to Regulation 43(A) of the SEBI Listing Regulations (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the Company does not fall under top 1000 Listed Companies by market capitalization as on
31st March, 2026 and hence the requirement for adopting the Dividend Distribution Policy is not applicable to the
Company.

TRANSFER TO RESERVES

The Board of Directors has decided to retain the entire amount of profit for the financial year 2025-26 in the
Statement of Profit and Loss.

MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION

There were no material changes and commitments affecting the financial position of the Company between the
end of the financial year and the date of this Report.

SHARE CAPITAL

The paid-up Equity Share Capital of your Company as on March 31, 2026 stood at ^ 19.08 crores comprising of
1,90,78,329 equity shares of ^ 10/- each. The Company has not issued shares with differential voting rights/Bonus
Shares nor has granted stock opti'ons/sweat equity and has not bought back any of its securities during the year
under review.

FIXED DEPOSITS

The Company does not have 'Deposits' as contemplated under Chapter V of the Companies Act, 2013 read with
the Companies (Acceptance of Deposits) Rules, 2014. Further, the Company has not invited or accepted any such
deposit during the financial year ended 31^st March, 2026.

CREDIT RATING

The Rating Agency, India Ratings and Research (Ind-Ra) vide its letter dtd. 03.08.2026 has affirmed the ratings of
various credit facilities of the Company as stated below:

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Companies Act, 2013, the Directors confirm that:

a) in preparation of the annual accounts 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) they have selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the
Company as at March 31, 2026 and of the profit of the Company for the year ended on that date;

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 that such internal
financial controls are adequate and are operating effectively; and

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

CORPORATE GOVERNANCE REPORT

The Company has complied with the Corporate Governance requirements under the Companies Act, 2013 and

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

A report on Corporate Governance together with the certificate of the statutory auditors confirming compliance

with the conditions of Corporate Governance as stipulated in Regulation 34(3) read with Schedule V of SEBI

(Listing Obligations and Disclosure Requirements) Regulations, 2015 is enclosed as a part of this report as

Annexure-D.

MANAGEMENT DISCUSSION AND ANALYSIS

As required under Regulation 34(2)(e) read with Schedule V of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, Management Discussion and Analysis is enclosed as a part of this report as
Annexure-E.

CORPORATE SOCIAL RESPONSIBILITY

The provisions of corporate social responsibility as prescribed under Section 135 of the Companies Act, 2013 and
the Companies (Corporate Social Responsibility) Rules, 2014 as amended from time to time are not applicable to
your Company. Accordingly, there was no CSR obligation for the Company for the financial year 2025-26. The
Annual Reporting on CSR under Rule 8 of the Companies (Corporate Social Responsibility) Rules, 2014 is currently
not applicable to the Company.

Pursuant to the provisions of sub-section (9) of Section 135, the functions of CSR committee, if any, are duly
discharged by the Board of Directors of the Company. The Board has formulated a Corporate Social Responsibility
Policy (CSR Policy) indicating the activities to be undertaken by the Company. The CSR Policy may be accessed on
the Company's website at https://www.panchmahalsteel.co.in/assets/pdfs/disclosure-under-ree-46-2-of-the-
LODR/policies/Corporate-Social-Responsibilitv-Policv.pdf.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Your Company has not directly or indirectly:

a) given any loan to any person or other body corporate other than usual advances envisaged in a contract of
supply of materials if any,

b) given any guarantee or provide security in connection with a loan to any other body corporate or person;
and

c) acquired by way of subscription purchase or otherwise, the securities of any other body corporate
exceeding sixty percent, of its paid-up share capital, free reserve and securities premium account or one
hundred percent of its free reserves and securities premium account whichever is more.

RELATED PARTY TRANSACTIONS

In line with the requirements of the Act and the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the Company has formulated a Policy on Related Party Transactions. The Policy can be
accessed on the Company's website at https://www.panchmahalsteel.co.in/assets/pdfs/disclosure-under-reg-
46-2-of-the-LODR/Related-Partv-Transaction-Policv.pdf.

During the year under review, all related party transactions entered into by the Company, were approved by the
Audit Committee and were at arm's length and in the ordinary course of business. There were no materially
significant related party transactions with the Company's promoters, directors, management or their relatives,
which could have had a potential conflict with the interests of the Company at large or which is required to be
reported The Company did not have any contracts or arrangements with related parties in terms of Section 188(1)
of the Companies Act, 2013.

Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Act in Form
AOC-2 is not applicable to the Company for FY 2025-26 and hence does not form part of this report.

Details of related party transactions entered into by the Company, in terms of Ind AS-24 have been disclosed in the
notes to the financial statements forming part of this Report & Annual Accounts 2025-26.

DIRECTORS AND KEY MANAGERIAL PERSONNEL
Appointment /Re-appointment of Directors

Mr. Kalpesh J. Parmar (DIN : 00230588) was re-appointed as a retiring director by the members at their 52nd AGM
held on 22nd September, 2025.

In accordance with the provisions of Section 152(6) of the Companies Act, 2013 and Rules made thereunder and
Regulation 17(1A) of the Listing Regulations, Ms. Suchita Shah (DIN : 00427169), Non-Executive Non¬
Independent Director of the Company retires by rotation at the ensuing Annual General Meeting and being
eligible, offers herself for re- appointment. The members are requested to consider and approve the re¬
appointment and continuation of her directorship post attaining the age of 75 years.

The Board of Directors at their meeting held on 3rd August, 2026 on recommendation of Nomination and
Remuneration Committee, have appointed Mr. Ashok Malhotra (DIN: 00120198) as Chairman & Managing
Director of the Company for a period of 3 years with effect from April 1, 2027, subject to approval of the
Shareholders. Your directors recommend to the Shareholders the appointment of Mr. Ashok Malhotra as
Chairman & Managing Director of the Company at the ensuing Annual General Meeting.

Key Management Personnel

As on the date of this report, the following are the Key Managerial Personnel ('KMPs') of the Company as per
Sections 2(51) and 203 of the Companies Act, 2013:

- Mr. Ashok Ramlubhaya Malhotra - Chairman & Managing Director

- Mr. Deepak Nagar - AVP (Legal) & Company Secretary

- Mr. Kunal Thakrar - Chief Financial Officer

During the year under review, Mr. Nilesh Shah, resigned from the post of CFO with effect from the close of
business hours on 5th March, 2026. The Board acknowledges the significant contributions provided by him during
his tenure as Chief Financial Officer of the Company.

Pursuant to the provisions of Section 2(19) and 203 of the Companies Act, 2013 read with Rule 8 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 and other applicable provisions of
Companies Act, 2013 and pursuant to the applicable provisions of the Listing Regulations, the Board of Directors
of the Company on the recommendation of Nomination & remuneration Committee and Audit Committee of the
Board, has appointed Mr. Kunal M. Thakrar as Chief Financial Officer and Key Management personnel of the
Company with effect from 01.06.2026.

Declaration by Independent Directors

The Company has received the necessary declarati'ons/confirmati'ons from each Independent Director under
Section 149(6) and 149(7) of the Act and Regulations 16(1)(b) and 25(8) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, that they meet the criteria of independence laid down thereunder.
The independent directors have also confirmed compliance with the provisions of rule 6 of Companies
(Appointment and Qualification of Directors) Rules, 2014 as amended, relating to inclusion of their name in the
data bank of Independent Directors.

In the opinion of the Board, there has been no change in the circumstances which may affect their status as
Independent Directors of the Company and the Board is satisfied of the integrity, expertise, and experience
(including proficiency in terms of Section 150(1) of the Act and applicable rules thereunder) of all Independent
Directors on the Board.

Performance Evaluation

Pursuant to the provisions of the Companies Act, 2013 and Regulation 17(10) of the SEBI (Listing Obligations &
Disclosure Requirements) Regulations, 2015, the Board has carried out an annual performance evaluation of its
own performance, the Directors individually as well as the evaluation of the working of Board Committees viz.
Audit Committee, Nomination & Remuneration Committee, Stakeholders' Relationship Committee. The details of
Board evaluation process have been provided under the Corporate Governance Report.

Familiarization Programme for Independent Directors

All Independent Directors are familiarized with the Company, their roles, rights and responsibilities, nature of the
industry and operations of your Company. The Independent Directors were regularly updated on the industry and
market trends, plant processes and the operational performance of the Company through presentations.

In compliance with the requirements of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015,
the Company has put in place a familiarization program for Independent Directors. The details of familiarization
programs are explained in the Corporate Governance Report.

Nomination & Remuneration Policy

The Company's policy for appointment of Directors, Key Management Personnel and Senior Management
employees and their remuneration and other matters provided in Section 178(3) of the Act is available on the
website of the Company at https://www.panchmahalsteel.co.in/assets/pdfs/disclosure-under-ree-46-2-of-the-
LODR/Remuneration-Policv-for-Directors-KMP-and-other-Emplovees.pdf. The details of Nomination &
Remuneration Policy form part of the Corporate Governance Report of this Annual Report.

Number of Meetings of the Board and its committees

During the year under review, 5 (five) meetings of the Board of Directors of the Company were convened and held.
The detailed information on the meeting of the Board and its various Committee Meetings is included in the
Corporate Governance Report forming part of this report. The Company has complied with the applicable
Secretarial Standards issued by the Institute of Company Secretaries of India.

Committees of the Board

The Board of Directors has the following Committees:

• Audit Committee

• Remuneration and Nomination Committee

• Stakeholders' Relationship Committee

The details of the Committees along with their composition, number of meetings held and attendance at the
meetings are provided in the Corporate Governance Report.

AUDITORS AND AUDITORS' REPORTStatutory Auditors

The members of the Company at the AGM held on September 28, 2019, approved the appointment of, M/s CNK &
Associates LLP (Firm Registration No. 101961W), Chartered Accountants Vadodara, as the statutory auditors of
the Company. Further, the shareholders approved the re-appointment of M/s CNK & Associates, LLP for a second
term of five years commencing from the conclusion of the 51st AGM held on September 27, 2024 until the
conclusion of 56th AGM of the Company to be held in the year 2029.

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

Internal Auditors

Your Company has re-appointed M/s Keyur Patel & Co., Chartered Accountants, Vadodara as Internal Auditors of
the Company to carry out the internal audit of various operational areas of the Company for the financial year
2026-27. The Internal Auditors independently evaluate the internal controls, adherence to and compliance with
the procedures, guidelines and statutory requirements. The Audit Committee of Directors periodically reviews
the reports of the Internal Auditors and the corrective actions if any, are taken by the Management.

Cost Auditors

In terms of Section 148 of the Companies Act, 2013, 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 Companies Act, 2013.

The Board of Directors of the Company, on the recommendation of the Audit Committee, has approved the
appointment of M/s Kiran J. Mehta & Co. as cost auditors of the Company for the year ending March 31, 2027. M/s
Kiran J. Mehta & Co., Cost Accountants (FRN: 000025), Ahmedabad 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.

As required under the Companies Act, 2013, a resolution seeking members' approval for the remuneration
payable to the Cost Auditor forms part of the Notice convening the Annual General Meeting for their ratification.
The Cost Audit Report for the financial year ended 31st March, 2025 was filed with the Ministry of Corporate
Affairs on 26th August, 2025.

Secretarial Auditor

Pursuant to the provisions of Section 204 of the Act and Regulation 24A of the Listing Regulations, CS Niraj Trivedi
(FCS - 3844; COP -3123), Practicing Company Secretary was appointed as the Secretarial Auditors of the Company
to hold office for a period of 5 (five) consecutive years from financial year 2025-26 to financial year 2029-30 with
the approval of the Members at the 52nd AGM held on September 22, 2025.

The Secretarial Audit Report as issued by the Secretarial Auditor in Form No. MR-3 for the financial year 2025-26 is
annexed herewith as Annexure-A and forms integral part of this Annual Report. There are no qualifications,
reservations, adverse remarks or disclaimers made by the Secretarial Auditors, in their Audit Report for the
financial year 2025-26 except for those detailed in the attached Auditors' report included in the Annual Report.

Secretarial Standards

The Company has complied with the applicable Secretarial Standards (as amended from time to time) on
meetings of the Board of Directors and Meeting of Shareholders (EGM/AGM) i.e. SS-1 and SS-2 issued by The
Institute of Company Secretaries of India and approved by Central Government under section 118(10) of the
Companies Act, 2013.

The Company has in place proper systems to ensure compliance with the provisions of the applicable secretarial
standards issued by ICSI The Institute of the Company Secretaries of India and such systems are adequate and
operating effectively.

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.

ANNUAL RETURN

As required under Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on March 31, 2026 is
available on the Company's website at https://www.panchmahalsteel.co.in/assets/pdfs/disclosure-under-ree-
46-2-of-the-L0DR/annual-returns/MGT%20-7%20%28Annual%20Return%20-%2031.03.2026%29.pdf.

AUDIT COMMITTEE

During the year, the Board has accepted all recommendations of Audit Committee and accordingly no disclosure
is required to be made in respect of non-acceptance of the recommendation of the Audit Committee by the
Board. The composition of Audit Committee and other details are given in the Corporate Governance Report.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

The Company has a vigil mechanism named Whistle Blower Policy to deal with instances of fraud and
mismanagement, if any. The details of the Whistle Blower Policy are explained in the Corporate Governance
Report and also posted on the website of the Company.

RISK MANAGEMENT POLICY

The Company has a Risk Management Policy to ensure appropriate risk management within its systems and
culture. The Board of Directors and the Audit Committee of the Company periodically review the Risk
Management Policy of the Company.

The provisions of Regulation 21 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
relating to Risk Management Committee, are not applicable to the Company.

INSURANCE

The Company takes a very pragmatic approach towards insurance. Adequate cover has been taken for all movable
and immovable assets for various types of risks.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations.
The scope of the audit activity is broadly guided by the annual audit plan approved by the top management and
audit committee. The Internal Auditors routinely test these systems and significant audit observations, if any, and
follow up actions thereon are reported to the Audit Committee.

The Company has in place adequate internal financial controls with reference to financial statements.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS & OUTGO

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo as
stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts)
Rules, 2014, is annexed herewith as "Annexure-B" to this Report.

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The information required under Section 197 of the Companies Act, 2013 read with Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Companies (Appointment and
Remuneration of Managerial Personnel) Amendments Rules, 2016, as amended from time to time, in respect of
Directors / employees of the Company is set out in "Annexure-C" to this report.

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

Pursuant to Regulation 34(2)(f) of Listing Regulations, a Business Responsibility and Sustainability Report (BRSR) is
mandatory for the top 1,000 listed entities based on market capitalization. Your Company is not being covered
under top 1000 companies, BRSR is not applicable to the Company.

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.

SUBSIDIARY, JOINT VENTURES OR ASSOCIATE COMPANY

Honeyvick Enterprises Private Limited continues to be a holding company, holding 55.36% Equity Share Capital of
the Company. The Company neither has any subsidiary/ associate/ joint venture company nor has any other
company become subsidiary/ associate/ joint venture company of the Company during the year.

UNPAID OR UNCLAIMED DIVIDEND

Pursuant to 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, if not claimed for a period of seven
years from the date of transfer to Unpaid Dividend Account of the Company, are liable to be transferred to IEPF.

Further, all the shares in respect of which dividend has remained unclaimed for seven consecutive years or more
from the date of transfer to unpaid dividend account shall also be transferred to IEPF Authority. The said
requirement does not apply to shares in respect of which there is a specific order of Court, Tribunal or Statutory
Authority, restraining any transfer of the shares. Other relevant details are included in the Corporate Governance
Report furnished in Annexure-D, which forms part of this report.

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

The Company has zero tolerance for sexual harassment at workplace and has in place an Anti-Sexual Harassment
Policy in line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 and the rules framed thereunder.

During the year under review, the Company has not received any complaint on sexual harassment. Hence, no
complaint was disposed off and/or remains pending for more than 90 days as of March 31, 2026.

OTHER DISCLOSURES

• There was no change in the nature of business of the Company as stipulated under sub-rule 5(ii) of Rule 8 of
Companies (Accounts) Rules, 2014.

• There was no application made or proceeding pending against the Company under the Insolvency and
Bankruptcy Code, 2016 during the year under review.

• There was no instance of one-time settlement with any Bank or Financial Institution.

• Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 regarding
Business Responsibility and Sustainability Report is not appliable to the Company.

• As required under the Companies (Accounts) Second Amendment Rules, 2025, the Board confirms that
during the year under review, the Company has complied with all provisions of the Maternity Benefit Act,
1961.

APPRECIATION

Your Directors thank the Banks, Central and State Government Authorities, Shareholders, Customers, Suppliers
and other business associates for their co-operation and support to the Company. The Directors express their
sincere appreciation for the dedication and commitment of all their employees.

For and on behalf of the Board of Directors

Sd/-

Ashok Malhotra

^Place : ^Vadodara Chairman & Managing Director

Date : 3 ^d August, 2026 DIN : 00120198