Markets

Your Directors hereby present the 53rd Annual Report on the
performance together with the Audited Financial Statements of the
Company for the year ended 31st March, 2026.

FINANCIAL RESULTS (Rs In Crores)

The Revenue from operations for FY 2025-26 stood at Rs. 337.77
crores, Profit before tax for FY 2025-26 stood at Rs. 52.72 crores.

DIVIDEND

In view of accumulated losses, the Board of Directors are not in a
position to recommend dividend for the Financial Year 2025-26.

SHARE CAPITAL

As of 31st March 2026, your Company's subscribed equity share capital
stood at Rs. 121,83,58,300. There were no alterations in share capital
during the year.

TRANSFER TO RESERVES

In accordance with Sections 123 and 134(3)(j) of the Companies Act,
2013, no transfers were made to the General Reserves for the year
under review.

CHANGE IN BUSINESS NATURE

There has been no changes in the nature of the Company's business
operations during FY 2025-26.

COMPANY OVERVIEW

Your Company is engaged in the manufacture of basic chemicals
including key alkali products, such as Soda Ash, Sodium Bicarbonate,
and also produces Ammonium Chloride through the modified Solvay
process. With a focus on operational efficiency, resource optimisation
and sustainable manufacturing practices, your Company continues to
strengthen its product capabilities while contributing to the development
of environmentally responsible chemical solutions.

PERFORMANCE REVIEW & STATE OF COMPANY'S AFFAIRS

During the year under review, your Company continued to focus on
operational excellence, process optimisation energy management and

improved plant reliability, resulting in a significant improvement in
production performance. Soda Ash production reached 70,450 MT, the
highest level achieved by the Company since FY 2011-12. The
improved operational performance was complemented by healthy
growth in sales across key product categories.

The production and sales during the year ended 31st March, 2026
compared to the previous year, are as given below;

Manufacturing Excellence

Manufacturing excellence remained the foundation of the Company's
operational strategy during FY 2025-26. Through disciplined plant
operations, continuous process optimization and enhanced asset
utilization, the Company delivered one of its strongest manufacturing
performances in recent years.

Your Company has achieved its highest Soda Ash production since FY
2011-12, recording 70,450 MT, while achieving 90.3% of its planned
annual production. These achievements reflect your Company's
continued focus on operational stability, manufacturing efficiency and
reliable customer supply. These accomplishments reinforce your
Company's commitment to operational excellence while creating a
strong foundation for sustainable growth.

Driving Operational Excellence

Operational excellence continued to strengthen manufacturing
performance across the organization. Continuous improvements in
process reliability, production planning and resource optimization
enhanced manufacturing efficiency while improving responsiveness to
market demand.

During the year, Soda Ash production recorded 13.1% growth over the
previous year, supported by improved plant reliability and disciplined
operational practices.

PRODUCT WISE PERFORMANCE

During the financial year 2025-26, your Company recorded an overall
improvement in production and sales volumes across its key products,
supported by enhanced plant performance, process optimisation and
improved operational efficiency. However, market conditions remained
challenging, particularly due to increased global supply and competitive
pricing pressures.

Soda Ash:

Soda Ash continued to be the Company's key product and witnessed
a significant improvement in operational performance during FY 2025¬
26. Production increased to 70,450 MT, the highest level achieved since
FY 2011-12, registering a 13.1% increase over the previous year's
production of 62,280 MT. Soda Ash sales also increased by 9.3% during
the year, reflecting improved market demand and the Company's ability
to meet customer requirements. However, realisations remained under

pressure due to a decline in market prices, primarily attributable to
increased global supply and competitive pricing pressures.

Ammonium Chloride:

Ammonium Chloride (ACL), a key co-product of the Company's Solvay
process, continued to remain an important part of its product portfolio.
Production remained broadly consistent with the previous year, while
sales increased by 18.6% during FY 2025-26. The product witnessed
wider acceptance among customers during the year and is expected
to benefit from further diversification in applications and product forms.
The market for ACL is expected to recover gradually, supported by
increasing customer acceptance and broader end-use opportunities.

Your Company successfully maintained its captive salt production
capacity at 16,353 MT, supporting operational self-reliance and ensuring
continuity of the Soda Ash manufacturing process. The Company
continued to enhance the utilisation of recovered carbon dioxide as part
of its resource-efficiency and sustainability initiatives, contributing to
improved resource utilisation and supporting its commitment to
sustainable manufacturing practices.

SUSTAINABILITY

Building on its sustainability initiatives, your Company has accelerated
the transition towards cleaner manufacturing. The successful
achievement of 100% biomass utilization together with the increase in
green power share from 28% to 53% significantly reduced dependence
on fossil fuels and strengthened the Company's decarbonization journey.

The carbon emission intensity for Soda Ash has been reduced substantially
with adoption of CO₂ capture and green power and the overall product
carbon footprint reduced to near zero tCO₂e per tonne. While alternative
technologies like the Solvay process aim for a 30% reduction in carbon
footprint by 2030, your Company has taken a pioneering role in establishing
low-carbon Green Soda ash. Renewable energy adoption, biomass
utilization and continuous operational improvements resulted in a significant
reduction in greenhouse gas emissions.

MARKET SCENARIO

India's chemical and fertilizer sector continues to remain an important
contributor to the country's industrial and agricultural growth, supported
by strong domestic demand, infrastructure development, expanding
manufacturing activity and increasing focus on self-reliance. India's
competitive manufacturing capabilities, skilled workforce, cost
advantages and strategic position in global supply-chain diversification
continue to attract investments and create opportunities for the chemical
industry. The growing demand from agriculture, FMCG and industrial
sectors, along with increasing emphasis on sustainable and
environmentally responsible manufacturing, is expected to support the
sector's long-term growth. However, volatility in raw material prices,
global trade uncertainties, geopolitical developments and competitive
imports remain key factors influencing the industry outlook for
FY 2026-27.

FUTURE OUTLOOK

Building on its operational achievements, your Company is committed
to shaping a future driven by innovation, sustainability and
manufacturing excellence. The strategic expansion of Soda Ash
production capacity from 75 KTPA to 275 KTPA, together with the
development of value-added products, will strengthen the Company's
manufacturing capabilities and support long-term business growth.

Your Company is actively progressing the development of Dense Soda
Ash, Fertilizer Grade Granular Ammonium Chloride, Micronutrient-
enriched Ammonium Chloride, and 99.5% purity Ammonium Chloride.

These initiatives will diversify the product portfolio, enhance customer
value and reinforce the Company's commitment to innovation,
sustainability and operational excellence.

As sustainability becomes a key purchasing criterion globally, particularly
within the European Union, Your company intends to expand its
presence in export markets. With its low-carbon manufacturing process
and verified Product Carbon Footprint (PCF), your company is well
positioned to supply environmentally sustainable soda ash to European
customers. This expansion is expected to diversify revenue streams
while improving export earnings and global market presence.

Your company currently operates a 174 MTPD CO₂ capture plant
integrated with biomass flue gas, enabling the use of biogenic CO₂ in
soda ash manufacturing. As part of its expansion strategy, your
company is also planning to install a 75 MT/hr biomass boiler to further
strengthen renewable energy integration.

OPPORTUNITIES AND THREATS

Your Company has initiated a long-term growth strategy in collaboration
with its customers, with a focus on capacity expansion, modernisation
and the implementation of a structured pricing policy. Engineering
activities are underway to revamp and upgrade the production facilities,
supported by the adoption of AI-driven process optimisation to improve
operational efficiency and productivity.

Recognising the potential challenges associated with marketing higher
volumes of Ammonium Chloride, the Company has developed long-term
strategies to strengthen its market presence and expand its customer
base. These initiatives are aimed at supporting sustainable growth and
meeting the anticipated increase in demand, particularly from the FMCG
and industrial sectors. However, ongoing geopolitical conflicts and
prevailing global economic conditions, fluctuations in raw material costs
and changes in global trade dynamics may continue to exert pressure
on margins, particularly amid rising imports and competitive market
pricing.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Soda Ash industry is concentrated in the state of Gujarat due to
availability of salt and lime and your company is the only factory which
is outside Gujarat. The product is mainly used in the manufacturing of
detergents and glass. Your company also co-produces Ammonium
Chloride fertilizers, unlike Gujarat based industries. Your company also
capture raw material Co2 gas from boiler flue gas whereas others use
lime kiln gas. Your company has converted both the boilers to utilize
Biomass to make the product in Greener route.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

Your Company maintains a recognized union that operates on
democratic principles and engages regularly with the Human Resources
department to foster a collaborative and transparent work environment.

As of 31st March 2026, your Company have employed a total of 310
individuals, primarily comprising young and dynamic professionals.
Recruitment efforts are focused on sourcing talent from nearby districts
and villages, with the objective of training and retaining local workforce.

New hires are inducted through structured training programs at both
engineering and junior engineering levels. These trainees contribute
significantly to the Company's operational energy and culture, forming
a vital part of its growth and performance strategy.

ENVIRONMENT AND SAFETY

During the year, your Company successfully updated certifications for
ISO 9001:2015 (Quality Management System) and ISO 14001:2015

(Environmental Management System) during the year, and is migrating
towards ISO 45001:2018. Your Company is migrating towards
reinforcing its commitment to occupational health and safety.
Additionally, your Company has maintained BIS certification for product
quality, ensuring zero deviations continously over the years.

In recognition of its efforts towards sustainability and innovation, your
Company was honored with the FICCI Award for 'Best Green Process
Award' in 2026 and has been recognized by Tuticorin Corporation for
successful environmental initiative in eradication of Juli flora, reinforcing
the company's commitment towards ecological sustainability during the
financial year 2025-26.

Achievements:

• Achieved a significant increase in biomass utilization, from 23%
to 89% in FY 2024-25 and raised biomass consumption from
89% to 99% in FY 2025-26

• Improved the CO₂ Recovery Plant performance by enhancing
permeability and stabilizing process parameters, resulting in
increased recovery of biogenic CO₂.

Safety Initiatives

• Implemented an AI-based safety violation detection system
across key plant areas to enable real-time monitoring, proactive
identification of unsafe acts and conditions, and timely corrective
actions.

• Launched the Safety Steward Initiative to strengthen employee
ownership, enhance frontline safety leadership, and foster a
proactive safety culture across the organization. The initiative
also recognizes and rewards the Best Safety Steward of the
Month, encouraging sustained commitment to safe work
practices

• Conducted inspection and statutory examination of all conveyor
belts, safety valves, and safety belts through an in-house DISH-
approved Competent Person, ensuring regulatory compliance,
equipment integrity, and operational safety.

• During FY 2025-26, National Safety Week and Road Safety
Week were observed in our plant through safety awareness
programmes, competitions, demonstrations and recognition
initiatives. These activities promoted safe work practices,
responsible driving and defensive driving, while strengthening
employee and contractor engagement and reinforcing a proactive
safety culture.

• Our Process Safety and Risk Management (PSRM) frameworks,
supported by HAZOP studies and structured risk assessments,
help identify and mitigate process hazards while enhancing
operational reliability. Occupational health initiatives, including
periodic health assessments, exposure monitoring and trained
First Aid Responders, safeguard employee well-being, while
active workforce participation through safety committees, toolbox
talks, hazard reporting and training strengthens a proactive safety
culture.

WIND MILL

During the year 2025-26 705715 units were generated from Wind
Turbine Power Generators at Gudimangalam, Tirupur District, as against
512117 units generated in the previous year. The aging windmills are
being maintained annually for better results.

POWER PURCHASE

Your Company purchased 4,23,62,855units of electricity (green power
units) under the Group Captive Scheme & IEX during the financial year
starting from 1st April 2025 to 31st March 2026 from to reduce the
cost of power.

CAPTIVE SALT PRODUCTION

16353 MTs of salt was produced and all the unused pans were also
brought under production Unseasonal and unpredicted rainfall
combining with has reduced the salt output last year, else the production
could have been made further improvement. The availability of
enrinched brine water from SWRO plant is also helping to enhance the
salt productivity.

DEPOSIT FROM PUBLIC

There was no outstanding deposit as at 31st March, 2026. The
Company has neither accepted nor renewed any deposits during the
year under review.

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION
AND PROTECTION FUND

Since there was no Dividend declared last year, the provisions of
Section 125 of the Companies Act, 2013 do not apply.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

1. Current Ratio (times) has decreased to 0.45 (FY 2024-25 : 0.73)
mainly due to Additional Borrowings during the year & Capex
creditors for ongoing projects as well as reduction in Trade
Receivables.

2. Debt Equity Ratio (times) has improved to 0.66 (FY 2024-25 :

0.69) because of increase in Share holder's equity due to
increase in profit

3. Debt Service Coverage Ratio (times) has decreased to 10.22
(FY 2024-25 : 13.01) Due to additional Borrowings & related
Finance cost

4. Return on Capital employed (%) has decreased marginally to
0.15 (FY 2024-25 : 0.17) due to increase in Share holder's
Equity.

MATERIAL CHANGES AND COMMITMENT IF ANY, AFFECTING THE
FINANCIAL POSITION OF THE COMPANY OCCURRED BETWEEN
THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL
STATEMENT RELATES AND THE DATE OF THE REPORT

No material changes and commitments affecting the financial position
of the Company occurred between the end of the financial year to which
this financial statement relates on the date of this report.

STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION
OF RISK MANAGEMENT POLICY OF THE COMPANY

The Statement showing the details regarding the development and
implementation of Risk Management Policy of the Company is furnished
in Annexure 1, which is attached to this report.

The risk management includes identifying types of risks and its
assessment, risk handling and monitoring and reporting.

Your company risk has been drastically reduced and only risk associated
to normal business operations persist, which is in regular monitoring
and control of Risk Management committee of the company. Hence the
Board does not envisage any other major risk.

DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE
COMPANY ON ITS CORPORATE SOCIAL RESPONIBILITY
INITIATIVES

The Company has voluntarily constituted a Corporate Social
Responsibility (CSR) Committee, which has recommended a CSR
Policy to the Board. The CSR Policy was subsequently approved and
adopted by the Board and is being implemented by the Company. The
CSR Policy is available on the Company's website and can be accessed
at the Web-link: https://tacfert.in/wp-content/uploads/2026/04/CSR-
policypdf.

Although the Company is not subject to any mandatory CSR
expenditure requirement based on the applicable profit criteria under
Section 198 of the Companies Act, 2013, it has voluntarily undertaken
CSR initiatives with a view to contributing to the welfare and
development of the communities in which it operates.

During FY 2025-26, your Company undertook voluntary CSR initiatives
focused on promoting the health and well-being of communities in the
rural and peri-urban areas of Tuticorin District. Two health-focused
programmes, namely a General Medical Camp and an Eye Camp, were
organised in association with reputed healthcare organisations.

The General Medical Camp benefited 135 persons, comprising 64
males and 71 females, through general medical consultations, health
screening, basic treatment, free medicines and health awareness
sessions.

The Eye Camp benefited 164 persons, comprising 49 males and 115
females, through eye screening, vision and refraction tests, health
screening and awareness on eye care. Free spectacles are proposed
to be provided to 50 eligible beneficiaries identified during the camp.

The expenditure incurred on these voluntary CSR initiatives was placed
before and reviewed by the CSR Committee against the approved
budgets. Through these initiatives, your Company continues to
demonstrate its commitment to community welfare, preventive
healthcare and inclusive social development.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013

No loans or guarantees under Section 186 of the Act were extended
by the Company during the year under review.

As at 31 st March 2026, the Company held equity shares of Rs. 10 each
in the following green power entities forming part of the "SEMBCORP
Group":

• Green Infra Renewable Energy Generation Private Limited
(GIREGPL) : 47,16,424 equity shares

• Green Infra Renewable Energy Projects Limited (GIREPL)
: 53,95,976 equity shares

• Green Infra Wind Energy Generation Limited (GIWEGL)
: 54,94,800 equity shares

Pursuant to the decision of the Board of Directors at its meeting held
on 11th March 2026, the Company agreed to transfer a portion of its
shareholding in the above entities to Greenstar Fertilizers Limited, a
related party, subject to obtaining the requisite approvals from all parties
to the contract.

The share transfer was completed on 14th May 2026. Following the
completion of the transaction, the Company's residual shareholding in
the respective entities is as follows:

• Green Infra Renewable Energy Generation Private Limited
(GIREGPL): 24,89,398 equity shares

• Green Infra Renewable Energy Projects Limited (GIREPL):
28,48,075 equity shares

• Green Infra Wind Energy Generation Limited (GIWEGL):
29,00,236 equity shares

PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE
WITH RELATED PARTIES

Your Company has in place a robust process for approval of Related
Party Transactions and on dealing with Related Parties. As per the
process, necessary details for each of the Related Party Transactions
as applicable along with the justification are provided to the Audit
Committee in terms of the Company's Policy on Materiality of and
Dealing with Related Party Transactions and as required under SEBI
Master Circular dated 30th January 2026 for compliance with the
provisions of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 ('SEBI LODR Regulations'). The
Material Related Party Transactions approved by the Members of the
C ompany are also review ed and recom mended by the Au dit
Committee to the Members. On quarterly basis, the Audit Committee
of the Company also reviews the actual transactions for which
Omnibus approval has been granted as per Regulation 23 of the SEBI
LODR Regulations and section 177 of the Companies Act, 2013
('the Act').

All Related Party Transactions entered during the year were in the
ordinary course of business and on arm's length basis. During the year,
your Company entered into Material Related Party Transactions as
previously approved by the Members under Regulation 23 of the SEBI
LODR Regulations. The Company also intends to enter into Material
Related Party Transactions for which the approval of Members is being
sought at the ensuing Annual General Meeting of the Company. Further,
there were no material contracts or arrangements or transactions for
the year ended 31 st March 2026 as per the provisions of the Act.

The Policy on Materiality of and Dealing with Related Party Transactions
as approved by the Board is uploaded on the Company's website and
can be accessed at the Web-link: https://tacfert.in/wp-content/uploads/
2026/04/Policy-on-related-party-t ransactions.pdf

DISCLOSURE UNDER SECTION 134(3)(L) OF THE COMPANIES
ACT, 2013

There are no material changes and commitments which could affect
the Company's financial position have occurred between the end of the
financial year of the Company and date of this report.

COMPANY'S POLICY RELATING TO DIRECTORS APPOINTMENT,
PAYMENT OF REMUNERATION AND DISCHARGE OF THEIR DUTIES

The Company's Policy relating to appointment of Directors, payment
of Managerial remuneration, Directors' qualifications, positive attributes,
independence of Directors and other related matters as provided under
Section 178(3) of the Companies Act, 2013 is furnished in Annexure 2
and is attached to this report.

NUMBER OF BOARD MEETINGS CONDUCTED DURING THE
YEAR UNDER REVIEW

The Company had five Board meetings during the financial year under
review. Full details are given in the Corporate Governance Report.

DIRECTORS' RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 134(5) of the Companies
Act, 2013 the Board hereby submits its responsibility Statement:-

a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper
explanation relating to material departures;

b) 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;

c) 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;

d) the directors had prepared the annual accounts on a going
concern basis; and

e) 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. Internal financial
control means the policies and procedures adopted by the
Company for ensuring the orderly and efficient conduct of its
business including adherence to Company's policies, the
safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting
records and the timely preparation of reliable financial
information.

f) 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.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The Company does not have any Subsidiary, Joint venture or Associate
Company.

REPORTING OF FRAUDS BY AUDITORS

During the year under review, the Statutory Auditors, Cost Auditors and
Secretarial Auditor 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 Companies Act, 2013.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN
AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL)
ACT, 2013:

The Company has complied with the provisions relating to the
constitution of Internal Complaints Committee under the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013.

No case of sexual harassment was reported during the year.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Company's Board comprises the following directors as on 31st
March 2026:

Mr. Ashwin C Muthiah, Ms. Devaki Muthiah Chardon, Ms. Sashikala
Srikanth, Ms. Latha Ramanathan, Mr. T. K. Arun, Mr. G. D Sharma,
Mr. K. R. Anandan and Mr. E Rajeshkumar

Appointments

• Ms. Latha Ramanathan (Appointed as Independent director wef
31st July,2025).

• Upon completion of his term as Whole time director from 8th
July,2023 to 7th July,2026, Mr. E Rajeshkumar (DIN:102027780)
was appointed as Wholetime director of the company for a term
of three years from 8th July 2026 to 7th July,2029 through postal
ballot approved on 31st July,2026.

Completion of term

• Ms. Rita Chandrasekar (Completed second term five year as
Independent director wef 30th July,2025)

Other Key Managerial Personnel of the company

• Mr. D Prembabu is the Chief Financial Officer of the company.

• Ms. C. S. Vijayalakshmi is the Company Secretary of the company.
COMMITTEES OF THE BOARD

There are six committees of the Board namely, Audit Committee,
Nomination & Remuneration Committee, Stakeholders Relationship
Committee, Risk Management Committee, Corporate Social
Responsibility Committee and Borrowing committee. The details of
composition of committees are furnished in the Corporate Governance
report, which is annexed to this report.

DECLARATION OF INDEPENDENT DIRECTORS

The Independent Directors have submitted their disclosures to the Board
that they fulfill all the requirements as stipulated in Section 149(6) of
the Companies Act, 2013 so as to qualify themselves for the
continuance / appointment as independent directors under the
provisions of the Companies Act, 2013 and the relevant rules.

The Independent Directors have also affirmed that they have completed
requisite steps towards the inclusion of their names in the data bank of
Independent Directors maintained with the Indian Institute of Corporate
Affairs in terms of Section 150 of the Act, read with Rule 6
of the Companies (Appointment and Qualification of Directors) Rules,
2014.

BOARD EVALUATION

In accordance with the provisions of the Companies Act, 2013 and
Regulation 17 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Board has undertaken an annual
evaluation of its own performance, that of individual Directors, and the
functioning of its various Committees.

The Independent Directors, at their separate meeting on 20th
March,2026 held without the participation of Non-Independent Directors
and Key Managerial Personnel, evaluated the performance of the Board
as a whole and that of the Non-Independent Directors. They also
reviewed the quality, quantity, and timeliness of information flow between
the Company's Management and the Board, which is essential for
effective decision-making and governance.

This structured evaluation process is aimed at enhancing the overall
effectiveness of the Board and ensuring that its composition and
functioning remain aligned with the Company's strategic objectives and
regulatory expectations

STATUTORY AUDITORS

M/s. M S K A & Associates LLP, Chartered Accountants, Chennai,
(Registration No.105047W / W101187) have been appointed as
Statutory Auditors of the Company in c and after completion of a five
years period, the term was further extended by another 5 years, till the
AGM to be held in 2027, in the AGM held on 21st September, 2022.

SECRETARIAL AUDITOR

M/s. KRA & Associates, Practicing Company Secretaries have been
appointed as the Secretarial Auditors of the company by the
Shareholders in the 52nd Annual General Meeting held on 29th
September,2025 for a term of 5 consecutive years from the Financial
year 2025-26 till the Financial Year 2029-30. Secretarial Auditor's Report
is annexed, which forms part of this report.

COST AUDITOR

As per the Government of India's directive, the Company's Cost Reports
in respect of Fertilizer -Ammonium Chloride and Chemical - Soda Ash
for the year ended 31st March 2026 are being audited by the Cost
Auditor M/s. B Y & ASSOCIATES, (Firm Reg No. '003498), who was
appointed by the Board. The Company is required to maintain Cost
Records as specified by the Central Government under Section 148
(1) of the Act and that accordingly such accounts and records are
made and maintained. The Cost Audit Report for the year ended
31 st March 2026 was filed within the time stipulated under the Act.

EXPLANATIONS OR COMMENTS ON QUALIFICATIONS,
RESERVATIONS OR ADVERSE REMARKS OR DISCLAIMERS
MADE BY THE AUDITORS AND THE PRACTICING COMPANY
SECRETARY IN THEIR REPORTS

There was no qualification, reservations or adverse remarks made by
the Statutory Auditors, M/s. MSKA & Associates and Secretarial Auditor,
KRA & Associates, Practicing Company Secretaries in their reports.

The Statutory Auditors' Report for the financial year ended, 31 st March
2026 is annexed.

INTERNAL FINANCIAL CONTROL

The Board has adopted comprehensive policies and procedures to
ensure the orderly and efficient conduct of the Company's operations,
commensurate with the size, scale and complexity of its operations.
These policies and procedures, supported by appropriate internal
controls, are designed to provide reasonable assurance regarding the
reliability of financial reporting, safeguarding of assets, prevention and
detection of frauds and errors, accuracy and completeness of
accounting records, and timely preparation of reliable financial
information.

The Company has a robust internal control system, supported by an
independent external agency appointed as the Internal Auditor, which
conducts regular audits across various operational areas and reports
its findings to the Audit Committee and the Board, as applicable. Major
decisions are subject to appropriate review and scrutiny at multiple
levels and across relevant functions prior to implementation, thereby
promoting transparency, accountability and sound governance.

The Management periodically evaluates the adequacy and effectiveness
of the internal controls, and necessary corrective actions are taken as
appropriate

SIGNIFICANT LEGAL ORDERS

No significant or material orders were passed by any regulatory
authority, court or tribunal that could adversely impact the Company's
going concern status or its future operations.

INSOLVENCY AND BANKRUPTCY PROCEEDINGS

As of 31 st March 2026 and through the date of this report, there have
been no applications filed or proceedings initiated against the Company
under the Insolvency and Bankruptcy Code, 2016.

ONE-TIME SETTLEMENT AND LOAN VALUATION DISCLOSURE

No one-time settlements or loan valuations differing in amount were
undertaken during the year. Hence, no disclosures are required under
this clause

DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND
PROVIDING VIGIL MECHANISM/WHISTLE BLOWER POLICY

The Audit Committee consists of Ms. Sashikala Srikanth,
Mr. K R Anandan and Ms. Latha Ramanathan.

The Company has established a Whistle Blower Policy/Vigil Mechanism,
overseen by the Whistle Blower Committee, to provide a structured
mechanism for employees and other stakeholders to raise genuine
concerns through physical or electronic modes, including email. The
Company has put in place adequate safeguards against victimisation
of employees and other stakeholders who report their concerns in good
faith. Further, the Company has provided direct access to the Chairman
of the Audit Committee for reporting matters concerning the interests
of employees and the Company through a dedicated email ID. Policy
is given in Annexure 3 and is placed on the Company's website and
can be accessed at the Web-link: https://tacfert.in/wp-content/uploads/
2026/04/Whistle-blower-policy.

SHARES

The Company has not bought back any of its shares during the year
under review.

The Company has not issued any "Sweat Equity" Shares during the
year under review.

No Bonus Shares were issued during the year under review.

The Company has not provided any Stock Option Scheme to the
employees.

ANNUAL RETURN

The extracts of Annual Return pursuant to the provisions of Section 92
of the Companies Act, 2013 read with relevant Rules, is placed in the
website of the Company in the link https://tacfert.in/investors/annual-
reports/.

CORPORATE GOVERNANCE

In accordance with the requirements of Schedule V and Regulation
34(3) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, a detailed report on Corporate Governance forms
an integral part of this Annual Report.

A certificate from M/s KRA & Associates, Practicing Company
Secretaries, confirming compliance with the prescribed Corporate
Governance norms has been annexed to this Report.

FAMILIARIZATION PROGRAMME

Upon induction to the Board, Independent Directors participate in a
structured Familiarization Programme designed to provide insights into
the Company's operations, governance framework, and regulatory
environment. Details of this programme are disclosed in the Corporate
Governance Report and are also available on the Company's website
at https://www.tacfert.in.

In addition to the initial programme, individual site visits and detailed
discussions are conducted periodically to ensure continuous
engagement. Directors are regularly updated on legal and regulatory
developments, enabling them to effectively discharge their
responsibilities and contribute meaningfully to Board deliberations.

DISCLOSURE ON COMPLIANCE WITH SECRETARIAL
STANDARDS

Your Directors confirm that the Secretarial Standards issued by the
Institute of Company Secretaries of India, have been complied with.

COMPLIANCE WITH THE MATERNITY BENEFIT ACT, 1961

The Company is compliant with the applicable provisions of The
Maternity Benefit Act, 1961 and has policies, systems and processes
in place to ensure ongoing compliance.

PARTICULARS OF EMPLOYEES
Nomination and Remuneration Policy

Pursuant to Section 178(3) of the Companies Act and the Listing
Regulations, the Nomination and Remuneration Policy is detailed in
Annexure 2, of this Report.

Remuneration of Directors, KMP & Employees

A comprehensive statement of remuneration for Directors, Key
Managerial Personnel (KMP), and other employees has been enclosed
in Annexure 4, in accordance with Section 197(12) of the Companies
Act, 2013 and Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.

AFFIRMATION THAT THE REMUNERATION IS AS PER THE
REMUNERATION POLICY OF THE COMPANY

Company is adopting remuneration guidelines for fixing the
remuneration as per the policies laid down by the Nomination and
Remuneration Committee.

PARTICULARS AS REQUIRED UNDER RULE 3 OF THE
COMPANIES (ACCOUNTS) RULES, 2014A. Conservation of Energy

1. Steps taken and impact on conservation of energy

2. Energy Saving - ACL Dryer Heating Conversion from FO to Steam
The ACL dryer heating system, which was previously operated
using Furnace Oil (FO), has been converted to steam-based
heating. This modification eliminates the direct consumption of
Furnace Oil for dryer heating and utilizes available process steam
as the heating medium. The conversion reduces overall energy
consumption by replacing direct FO firing with steam heating. It
also significantly reduces Furnace Oil consumption and
associated fuel handling requirements, thereby improving the
overall energy efficiency of the ACL drying process.

Due to installation of filter press in the recycle steam, added last
year, the distiller steam consumption has reduced along with
improved recovery efficiency.

3. Steps taken for utilizing alternative sources of energy

Your Company has successfully implemented switch over of fuel
from Coal to Biomass This has eliminated usage of coal of
approximately 7498 MTs in a year and producing low carbon
footprint product.

4. Capital investment in conservation energy

The Company has invested Rs. 1,324.90 lakhs during the year
in equity shares of a third-party electricity generation entity
towards procurement of green power generated through solar
and wind sources. The Company commenced receiving power
under the arrangement from September 2025.

B. Technology Absorption

(a) Since commissioning, we have been utilizing technology from
Hitachi Zosen. As part of the plant modernization project, we are
now incorporating technology from Dalian Engineering. The old
and new plant systems will be seamlessly integrated to ensure
smooth and efficient operation

(b) Expenditure on Research & Development

(i) Capital Nil

(ii) Recurring Nil

(iii) Total Nil

C. Foreign Exchange Earnings and outgo:

(a) Foreign Exchange inflow: NIL

(b) Foreign Exchange outflow: Rs. 4,296.91 Lakhs

GENERAL

No disclosure or reporting is required in respect of the following matters
as there were no transactions on these items during the year:

a. No significant and material orders passed by the regulators or
courts or tribunals impacting the going concern status and
Company's operations in future

b. There was no issue of Equity shares with differential voting rights
ACKNOWLEDGEMENTS

Your Directors place on record their sincere thanks to bankers, business
associates, consultants, and various Government Authorities for their
continued support extended to your Company's activities during the year
under review. Your Directors also acknowledge gratefully the shareholders
for their support and confidence reposed on your Company.

DISCLAIMER

Statements in the Management Discussion and Analysis describing the
Company's objectives, estimates, projections, expectations may be
"forward-looking statements" within the meaning of applicable securities
laws and regulations. Actual results could differ materially from those
expressed or implied. Important factors that would make a difference
to the Company's operations include economic conditions affecting
demand-supply and price conditions in the domestic and overseas
markets in which the Company operates, raw material availability and
its prices, changes in the Governmental regulations, labour negotiations,
tax laws and other statutes and economic development within India.

For and on behalf of the Board of Directors

Chennai K.R. Anandan E Rajeshkumar

12th August,2026 Director Wholetime Director