DIRECTORS' REPORT

Your Directors are pleased to present the 36^th Annual Report together with the Audited Financial Statements of the Company for
the financial year ended 31^st March 2026.

1. PERFORMANCE

Your Company reported revenue of ^4,162.79 million for the financial year under review, as compared to ^3,482.22 million
in the previous financial year, recording a growth of 19.54%. The EBITDA margin stood at 35.8%, compared to 36.2% in the
previous financial year.

The financial performance of the Company for the year ended 31^st March 2026 is summarized below:

2. MANAGEMENT DISCUSSION AND ANALYSIS
A. Macro Economy
Global Economy

The global economy entered the year on a stable footing,
supported by resilient output and steady investment
momentum. Early-year estimates projected global GDP
growth at 3.3% for 2026 and 3.2% for 2027 according to
the January 2026 IMF Update. Inflation was expected to
continue moderating, with global headline inflation easing
to 3.8% in 2026 and 3.4% in 2027. Against this backdrop,
several major economies were positioned for solid
performance: the United States was projected to grow
2.4% in 2026 supported by fiscal policy and lower policy
rates, while India was expected to expand at 6.4% in 2026
owing to strong underlying momentum and a positive
tariff environment. Global trade volumes were anticipated
to normalize after expanding 4.1% in 2025.

However, the economic landscape shifted following the
outbreak of conflict in the Middle East in late February
2026, which disrupted energy markets and critical
shipping routes. The oil prices which previously were
expected to decline are now projected to rise by 21.4% in
2026 because of supply interruptions through the Strait
of Hormuz. Energy commodity prices as a whole are
expected to increase by 19% in 2026. This shock prompted
a downward revision of global growth to 3.1% for 2026,
compared with the earlier 3.3% estimate. Global inflation
projections were revised upward to 4.4%, reflecting higher
energy and food costs partially tied to disrupted transport
and fertilizer markets. Emerging market and developing
economies particularly energy importers face the sharpest
impact, with growth for this group revised down by 0.3
percentage points for 2026.

Despite these headwinds, several structural positives
continue to support global activity. Advanced economies

are expected to record combined growth of 1.8% in 2026,
while technology-related investment remains a key driver
of output as firms continue to expand AI-related capital
expenditure. Global trade volumes are projected to grow
2.8% in 2026 and 3.8% in 2027, supported by resilient
services trade and the gradual reorientation of supply
chains. Financial conditions, although affected by risk-off
sentiment at the onset of the conflict, remain broadly
accommodative relative to historical norms. These factors
help offset the near-term drag from commodity-linked
inflation and supply bottlenecks.

Outlook

Looking ahead, global growth is expected to stabilize at
3.2% in 2027, assuming a gradual normalization of energy
supplies and a stabilization of geopolitical conditions.
Key tailwinds include sustained productivity gains from
AI investment, resilient domestic demand in several
large economies, and easing trade policy uncertainty
as temporary tariff measures expire or are replaced by
negotiated arrangements. However, the outlook remains
sensitive to persistent energy price volatility, elevated
geopolitical risk, and tighter financial conditions. Under
the adverse-case scenario outlined in the April 2026 WEO,
global growth could slow further to 2.5% in 2026, and
in a severe scenario involving prolonged energy market
disruption it could approach 2%, bringing the world close
to recession territory. Even so, the global economy has
demonstrated considerable adaptability in recent years,
and with constructive policy coordination and improving
supply conditions, a gradual return to stronger medium-
term growth remains achievable.

(Source: IMF January 2026, IMF April 2026)

Indian Economy

India continued to stand out as one of the fastest-growing
major economies, underpinned by strong domestic
demand, resilient services exports, and sustained public
investment. Real GDP growth for 2025 is estimated at
7.3% in the IMF January 2026 Update and was revised
upward to 7.6% in the IMF April 2026 World Economic
Outlook, reflecting stronger-than-expected momentum
and favourable carryover effects into 2026. Growth is
projected to moderate to around 6.4-6.5% in 2026 and
2027, primarily as cyclical factors normalize, yet remains
well above both the global average and peer emerging-
market economies.

Inflation conditions improved markedly in 2025, aided
by subdued food prices and easing supply pressures.
While global commodity prices rose sharply following the
escalation of conflict in the Middle East, India's inflation
is expected to remain broadly contained. Consumer price
inflation is projected at 4.7% in 2026, before easing to
4.0% in 2027, broadly aligned with the Reserve Bank of

India's target range. Stable labor-market conditions further
support domestic demand, with unemployment projected
to remain around 4.9% during 2025-2027.

The outbreak of war in the Middle East in early 2026
introduced new external risks for the Indian economy,
primarily through higher global energy and food prices
and increased volatility in shipping and financial markets.
Oil prices are projected to rise significantly in 2026 under
the baseline conflict scenario, increasing import costs for
energy-dependent economies such as India. As a result,
India's current account deficit is projected to widen from
-0.9% of GDP in 2025 to -2.0% in 2026, before narrowing
to -1.6% in 2027 as price pressures ease and services
exports remain strong. Despite these pressures, India
benefits from resilient remittance inflows, a competitive
services sector, and improved market access following
reductions in U.S. tariffs on Indian goods.

Overall, while global uncertainties have increased, India's
economic fundamentals—supported by investment,
formalization, and ongoing infrastructure expansion—
continue to provide a degree of insulation against external
shocks.

Outlook

Looking ahead, India's growth outlook remains favourable
despite heightened global risks. The IMF expects India
to remain a key driver of global growth through 2027,
even as world output slows to 3.1% in 2026 and 3.2%
in 2027 amid geopolitical tensions and tighter financial
conditions. Downside risks for India stem primarily from
prolonged energy price volatility, escalation of geopolitical
conflicts, and slower global trade growth. At the same
time, upside potential exists from faster adoption of digital
technologies, continued public-sector capital expenditure,
and structural reforms that enhance productivity and
manufacturing competitiveness. In the baseline scenario,
India is expected to sustain medium-term growth above
6.5%, reinforcing its position as one of the most resilient
large economies in a challenging global environment.

(Source: IMF January 2026, IMF April 2026)

B. Industry Overview

1. Contract Research Organisation

1.1 Global Scenario

The global Contract Research Organization (CRO) market
is experiencing strong growth, driven by increasing
outsourcing of clinical research by pharmaceutical,
biotechnology, and medical device companies. The market
is projected to grow from USD 91.4 billion in 2026 to USD
175.8 billion by 2033, at a CAGR of ~9.8%, supported by
rising drug development complexity and the need for cost-
efficient, faster time-to-market solutions.

(Source:Coherent Market Insights)

•    Drug Discovery services

The global drug discovery market is witnessing strong
and accelerated growth, expanding from USD 124.1
billion in 2025 to USD 142.5 billion in 2026, and
is projected to reach ~USD 250.5 billion by 2030,
registering a CAGR of ~15%. Growth is driven by the
rising prevalence of chronic and infectious diseases,
increasing pharmaceutical R&D spending, and
growing collaborations between biotechnology and
pharmaceutical companies.

The market outlook remains highly positive,
supported by advancements in molecular biology,
increasing healthcare expenditure, and the need
for continuous innovation in drug development.
Emerging trends such as AI-driven drug discovery,
personalized medicine, integration of genomics
(omics data), and adoption of automation and
robotics are significantly improving efficiency and
accelerating drug development timelines.

Additionally, the market is witnessing structural
shifts due to outsourcing to CROs and increasing
use of advanced technologies such as high-
throughput screening and nanotechnology. However,
macroeconomic factors including geopolitical
tensions, trade tariffs, and supply chain disruptions
are increasing input costs—particularly for laboratory
equipment and reagents—while also encouraging
localization and self-reliance in certain markets.

Overall, the drug discovery market remains a critical
and innovation-driven segment of the pharmaceutical
industry, with strong long-term growth supported by
technology adoption, rising healthcare needs, and
sustained investment in R&D.

(Source:Research and Markets)

•    Pre-Clinical services

The global preclinical Contract Research Organization
(CRO) market is witnessing steady growth, driven by
increasing outsourcing of early-stage development
activities and rising R&D investments.

Within this landscape, preclinical services for
agrochemical and specialty chemical industries
primarily comprise allied non-clinical studies such as
toxicology, ecotoxicology, environmental fate, residue
analysis, and regulatory dossier preparation, which
are critical for demonstrating product safety and
environmental compliance prior to commercialization.

Pharmaceutical, biotechnology, agrochemical, and
specialty chemical companies are increasingly relying
on CROs to access specialized expertise, reduce
infrastructure costs, and accelerate development
timelines, particularly as development pipelines

become more complex and compliance requirements
intensify.

Technological advancements are significantly
transforming the market, with the adoption of AI/ML,
3D cell culture models, and organ-on-chip platforms
enhancing predictive accuracy and reducing reliance
on traditional animal testing. These innovations
support improved decision-making in early-stage
safety and pharmacokinetic assessments across both
pharmaceutical and chemical regulatory programs.

Global demand is further driven by stringent
regulations, notably Europe's REACH framework,
which mandates extensive non-clinical data for
both new and existing chemicals, creating sustained
opportunities for global CROs. While the market is
mature in North America and Europe, Asia-Pacific
has emerged as the fastest-growing execution hub
due to cost efficiencies and expanding regulatory
adoption. Despite challenges arising from diverse
regulatory requirements and high GLP compliance
costs, regulatory complexity, sustainability focus,
technological innovation, and outsourcing trends
underpin a stable, long-term growth outlook for CROs
supporting these industries.

(Source:ECHA, Market Research Future, Emergen
Research, VPA Research, NCBI, Outcome Capital,
Research and Markets)

•    Bioanalytical testing and bioavailability/
bioequivalence (BA/BE) and Clinical Trials

The global bioequivalence studies market is witnessing
steady growth, and projected to reach ~USD 1.35
billion by 2033, growing at a CAGR of ~7.5%. Growth
is primarily driven by the rising demand for generic
drugs, increasing patent expiries, and regulatory
requirements mandating bioequivalence studies for
drug approvals.

•    Clinical trials market size was estimated is
projected to reach USD 158.4 billion by 2033,
growing at a CAGR of 7.7% from 2026 to 2033,
driven by the rising prevalence of chronic and rare
diseases, advancements in precision medicine and
biotechnology, the expansion of decentralized &
virtual trials, and growing R&D investments by
pharmaceutical and biotech companies.

Technological advancements and biosimulation are
reshaping the sector by enabling virtual bioequivalence
assessments and reducing dependence on extensive in-
vivo studies. Growing outsourcing to CROs and the rapid
expansion of clinical research infrastructure particularly
in emerging markets like India and China are further
accelerating market growth.

However, the market faces challenges from stringent

regulatory requirements, high validation costs, and data
quality constraints, which can increase timelines and
operational complexity. Overall, the bioequivalence studies
market remains a critical component of generic drug
development, with stable long-term growth supported
by regulatory compliance needs and the expanding global
generics market.

(Source:openPR.com, Grandview research)

Outlook

The overall outlook for drug discovery, pre-clinical services,
BA/BE studies, and the broader CRO sector remains strongly
positive. Drug discovery is accelerating with advances
in AI, genomics, automation, and sustained growth in
global R&D spending. Pre-clinical services continue to
expand as companies outsource complex toxicology and
regulatory studies, supported by technologies like 3D cell
culture and organ-on-chip. BA/BE studies show stable
growth driven by rising generic drug demand, patent
expiries, and biosimulation-based efficiencies. Across
all segments, CROs benefit from deeper outsourcing,
growing therapeutic complexity, and Asia-Pacific's rise as
a cost-efficient research hub, reinforcing long-term sector
resilience.

1.2 Indian Scenario

The Indian pharmaceutical Contract Research Organization
(CRO) market is witnessing robust growth, supported by
increasing outsourcing of drug development activities and
the country's emergence as a preferred destination for
clinical research. The market is projected to reach ~USD

5.0 billion by 2033, growing at a CAGR of ~9.5%.

Growth is driven by rising R&D costs, increasing patent
expiries, and the need for cost optimization, prompting
pharmaceutical companies to outsource clinical and
pre-clinical activities. India's cost-effective healthcare
ecosystem, skilled talent pool, and growing number of
CROs are further strengthening its position as a global
outsourcing hub.

Services-wise, clinical research dominates the market,
while pre-clinical services are expected to witness the
fastest growth, reflecting increasing demand for early-
stage drug development support. Additionally, factors such
as increasing healthcare investments, favorable regulatory
environment, and logistical advantages are expected to
sustain strong growth momentum. Overall, India continues
to gain prominence in the global CRO landscape, driven by
outsourcing trends.

(Source:Grand View Research)

• Drug Discovery Outsourcing

The India drug discovery outsourcing market is
witnessing strong growth, with market size projected
to reach ~USD 497.7 million by 2033, growing

at a CAGR of ~10.8%. This growth is driven by
increasing outsourcing by global pharmaceutical and
biotechnology companies seeking cost efficiency,
access to skilled scientific talent, and faster drug
development timelines.

India is emerging as a key global hub for early-
stage drug discovery services, supported by low
operating costs (up to ~40% lower than developed
markets), availability of skilled professionals, and
WHO-cGMP compliant infrastructure. Demand is
further supported by rising prevalence of complex
and genetic diseases, increasing R&D investments,
and government initiatives to strengthen the
pharmaceutical ecosystem.

Segment-wise, lead identification and candidate
optimization dominate the market, reflecting
growing demand for early-stage discovery services,
while other associated workflows are expected to
witness the fastest growth. Overall, India's increasing
integration into global drug development value
chains and its cost-capability advantage position it
as a high-growth, strategic outsourcing destination in
the pharmaceutical industry.

(Source:Grand View Research)

•    Pre-Clinical Services

The India preclinical CRO market is witnessing strong
growth projected to reach ~USD 450.9 million by
2033, growing at a CAGR of ~9.7%. Growth is primarily
driven by the increasing cost and complexity of drug
development, rising R&D investments, and growing
pressure on pharmaceutical companies to adhere to
strict timelines, thereby accelerating outsourcing of
preclinical research activities.

India is emerging as a preferred destination for
preclinical outsourcing, supported by its, skilled
talent pool, and increasing investments from global
pharmaceutical companies. Service-wise, toxicology
testing dominates the market, while bioanalysis and
DMPK studies are expected to witness the fastest
growth, reflecting rising demand for advanced and
complex testing capabilities.

Overall, the market outlook remains positive,
supported by increasing global outsourcing trends,
technological advancements, and India's growing
integration into the global drug development value
chain.

(Source:Grand View Research)

•    Bioanalytical testing and bioavailability/
bioequivalence (BA/BE) and Clinical trials

The Bioequivalence (BE) studies market in India is
projected to grow at a Compound Annual Growth

Rate (CAGR) of 9% from 2025 to 2030, with revenue
expected to reach USD 42.6 million by 2030. The
broader bioanalytical testing services market in India
is projected to see an even higher CAGR of 10.7% to
11.3% from 2025 to 2032/2033.

India has introduced significant regulatory reforms
through the New Drugs and Clinical Trials (Second
Amendment) Rules, 2026, aimed at simplifying
and accelerating export-focused bioavailability and
bioequivalence (BA/BE) studies. The amendment
introduces a "prior intimation" route, allowing
eligible low-risk BA/BE studies to commence upon
online submission and acknowledgment, eliminating
the need for prior regulatory approval and thereby
reducing approval timelines and procedural delays.

The relaxation applies to specific study types involving
already approved molecules in India or major global
markets, while maintaining safeguards such as
mandatory ethics approvals and exclusions for high-
risk drug categories. Overall, the reform is expected
to enable faster study initiation, improve turnaround
times for global regulatory submissions, and enhance
India's competitiveness as a hub for pharmaceutical
research and export-oriented clinical studies, while
retaining necessary regulatory oversight.

• India's clinical trials ecosystem is expected to grow at
a CAGR of 8.6% by from 2026 to 2030, supported by
regulatory reforms, a large and diverse patient pool,
and strong pharmaceutical capabilities. With rising
global confidence and growing registrations, India is
emerging as a key global hub for efficient, scalable
clinical research.

(Source:Lex Counsel)

Outlook

India's life sciences outsourcing market is set for strong
growth across drug discovery, preclinical research, BA/BE
studies, and CRO services. Rising R&D costs, increasing
patent expiries, and demand for cost-efficient development
continue to drive outsourcing to India's skilled,
costcompetitive ecosystem. Drug discovery outsourcing
is expanding rapidly, supported by advanced capabilities
and growing global integration. Pre- Clinical services and
BA/BE studies are also accelerating, aided by regulatory
reforms, expanding clinical research infrastructure, and
rising demand for toxicology, bioanalysis, and generics
development. Clinical trials market is also expanding
significantly, driven by increasing global demand for
cost-effective research and modernized, faster approval
processes under the New Drugs and Clinical Trials (NDCT)
Rules. Overall, India is strengthening its position as a high-
growth global hub for pharmaceutical R&D and clinical
research.

The global pharmaceutical analytical testing market is
witnessing robust growth, driven by increasing regulatory
stringency, rising complexity of drug development, and
the expanding pipeline of biologics and biosimilars. The
market is estimated at approximately USD 10.5 billion in
2026 and is projected to reach USD 15.7 billion by 2031,
growing at a CAGR of ~8.3%.

Growth is primarily supported by stringent regulatory
frameworks such as evolving validation and compliance
standards, which require continuous verification of
analytical procedures across the drug lifecycle. Additionally,
the increasing complexity of modern therapeutics including
cell and gene therapies, antibody-drug conjugates, and
mRNA based drugs has significantly elevated the demand
for advanced analytical capabilities.

A key structural trend is the outsourcing of analytical
testing to specialized contract research organizations
(CROs), driven by cost optimization and the need for
advanced instrumentation and expertise. Furthermore,
rising scrutiny around impurities (e.g., nitrosamines) and
stability testing is increasing testing volumes. Despite
challenges such as high equipment costs and data security
concerns, the market remains resilient, underpinned by its
non-discretionary role in regulatory compliance and drug
safety.

The Indian pharmaceutical analytical testing outsourcing
market is witnessing strong and sustained growth, driven by
increasing regulatory stringency, rising R&D investments,
and the growing complexity of drug development. The
market is projected to reach ~USD 780 million by 2035,
expanding at a CAGR of around 8.7%.

Growth is primarily supported by the increasing shift toward
outsourcing, as pharmaceutical and biopharmaceutical
companies seek to optimize costs, access specialized
expertise, and focus on core competencies. Heightened
regulatory scrutiny and compliance requirements,
particularly around quality assurance, are further
accelerating demand for advanced analytical testing
services.

Additionally, the expansion of biologics, personalized
medicine, and complex formulations is driving the
need for sophisticated testing capabilities, including
characterization, impurity testing, bioassays, bioanalytical
testing, stability studies, and method validation.
Technological advancements such as automation,
digitalization, and advanced analytical techniques are
further enhancing testing efficiency and accuracy.

Overall, India is emerging as a strategic hub for
pharmaceutical analytical testing outsourcing, supported
by strong scientific talent, cost competitiveness, and
increasing integration into global pharmaceutical value
chains.

3. Testing, Inspection & Certification Market

3.1 Global Scenario

The global Testing, Inspection and Certification (TIC)
market is a key enabler of quality assurance and regulatory
compliance across industries. It is projected to reach USD
555.9 billion by 2033, growing at a CAGR of 3.6%. Growth
is driven by increasing regulatory requirements, rising

consumer awareness of safety and quality, and expanding
global trade requiring adherence to international
standards.

Demand for TIC services remains strong across sectors such
as healthcare, food & agri, automotive, Electronics, energy,
and manufacturing, supported by rapid industrialization,
infrastructure development, and increasingly complex
supply chains. Technological advancements, including
automation, artificial intelligence, IoT, and data analytics,
are enhancing efficiency, accuracy, and scalability of
services.

Testing services dominate the market due to their
widespread use in industrial and manufacturing processes,
while certification services are expected to grow faster,
driven by sustainability and regulatory needs. Although
in-house services currently lead due to greater control,
outsourcing is gaining traction as companies seek
specialized expertise and cost efficiencies.

Manufacturing remains the largest application segment,
while healthcare is expected to grow at a faster pace due
to stringent safety standards. Regionally, Asia Pacific leads
the market, driven by strong industrial growth and export-
oriented economies such as China and India, while North
America and Europe benefit from established regulatory
frameworks.

Overall, the TIC market is expected to witness steady,
compliance-led growth, with emerging sectors such
as electric vehicles, renewable energy, and advanced
manufacturing creating new opportunities, alongside
increasing digitalization and outsourcing.

(Source:Grand View Research)

• Food and Agricultural Testing Industry

The global food safety testing market is witnessing
strong growth, driven by increasing concerns over
foodborne illnesses, rising consumer awareness, and
stringent regulatory requirements. The market was
valued at approximately USD 26.3 billion in 2025 and
is projected to reach USD 48.0 billion by 2033, growing
at a CAGR of 7.8% (2026-2033). Growth is further
supported by the rising consumption of processed
and packaged foods, globalization of food supply
chains, and parallel expansion in agricultural testing,
which ensures quality and safety at the source level.
Agricultural testing, involving analysis of soil, water,
seeds, and fertilizers, is gaining importance due to
the need for higher crop productivity, contamination
control, and sustainable farming practices, with the
market expected to grow at over 7% CAGR.

Demand for food safety testing is underpinned by
regulatory frameworks and standards such as HACCP
and ISO, as well as enforcement by authorities
like the FDA and FSSAI. Increasing incidences of

contamination, product recalls, and health risks
are prompting food manufacturers to adopt robust
testing protocols, while agricultural testing is being
increasingly integrated into the farm-to-fork value
chain to enhance traceability and quality assurance.

Technological advancements including PCR-
based testing, biosensors, DNA-based agricultural
diagnostics, and rapid testing methods are improving
the speed, accuracy, and efficiency of testing
processes, enabling real-time monitoring across both
agricultural inputs and downstream food processing
systems. From a segment perspective, microbiological
testing dominates the food safety market due to
its critical role in detecting pathogens, while soil
and water analysis represent key segments within
agricultural testing, driven by concerns over pollution
and nutrient management.

Traditional testing methods continue to hold the
largest share due to their reliability and regulatory
acceptance, although rapid testing technologies are
expected to grow at a faster pace due to shorter
turnaround times across both domains. Meat,
poultry, and seafood remain the largest application
segment in food testing due to high contamination
risks, while increasing demand for organic produce
and precision farming techniques is driving growth in
agricultural testing services.

Regionally, Europe leads due to stringent food safety
regulations, while Asia Pacific is the fastest-growing
region, supported by expanding food processing
industries, rising agricultural modernization, and
stronger regulatory enforcement in countries such as
India and China. Overall, the market is characterized
by growing integration between agricultural and food
testing ecosystems, technological innovation, and
increasing consolidation, positioning testing services
as a critical enabler of food safety, sustainability, and
regulatory compliance.

(Source:Grand View Research, CMI, [giiresearch.
coml)

• Electrical and Electronics Testing

The global Electrical & Electronics (E&E) Testing,
Inspection, and Certification (TIC) industry remains
a critical enabler of product safety, regulatory
compliance, and international trade. The market is
expected to reach USD 25.58 billion by 2033, growing
at a CAGR of approximately 4.5% during 2026-2033.

Growth continues to be driven by stringent regulatory
standards, increasing adoption of electrified and
connected devices, and the expanding scale of global
electronics manufacturing. Mandatory requirements
related to electrical safety, electromagnetic
compatibility (EMC), and energy efficiency support

stable demand across consumer and industrial
segments.

Asia Pacific remains the largest regional market,
supported by strong manufacturing activity, while
India is expected to record the highest growth rate
over the forecast period due to rapid industrialization
and strengthening compliance frameworks.

Outlook

Looking ahead, the industry outlook remains stable,
with sustained demand anticipated from electrification,
digitalization, and evolving regulatory requirements.
Providers with strong technical capabilities, global
accreditations, and digital testing infrastructure are well
positioned for longterm growth.

(Source:Verified Market Reports)

3.2 Indian Scenario

The Indian Testing, Inspection and Certification (TIC)
market is witnessing robust growth, driven by increasing
regulatory enforcement, industrial expansion, and deeper
integration with global supply chains. The market is
projected to reach USD 33.2 billion by 2033, growing at a
CAGR of 7.2%, significantly higher than the global average.
India accounted for around 4.5% of the global TIC market
in 2025 and is expected to remain one of the fastest-
growing markets in the Asia Pacific region, supported by
stricter compliance requirements across sectors such as
food, healthcare, and electronics.

Testing services dominate the market, accounting
for over 80% share, driven by strong demand across
manufacturing and industrial applications. Certification
services are expected to grow at a faster pace due to
increasing regulatory scrutiny, export requirements,
and rising focus on quality and sustainability standards.
Government initiatives such as Make in India and the
Smart Cities Mission, along with growth in infrastructure,
pharmaceuticals, and healthcare, are further driving
demand for TIC services.

Outlook

Overall, the India TIC market is expected to sustain
strong growth over the medium to long term, supported
by regulatory tightening, infrastructure development,
and increasing participation in global trade, alongside a
gradual shift toward specialized and outsourced testing
and certification services.

(Source: Grand View Research)

• Food Testing

The food safety testing market in India is characterized
by robust expansion, driven by a compound annual
growth rate (CAGR) of 9.8% from 2024 to 2033. Valued
at USD 655.4 million in 2024, the market is projected

to reach approximately USD 1.51 billion by 2033. This
growth is underpinned by rising consumer awareness
regarding foodborne illnesses and the increasing
stringency of domestic food safety regulations.

Segment and Regional Insights

•    Dominant Segments: Meat, poultry, seafood,
daily products, fruits and vegetables testing
remains the largest application area, reflecting
India's significant role in global protein exports
and the high safety standards required for
these commodities. Microbiological testing is
the primary service requested, focusing on the
detection of pathogens like Salmonella and
Listeria.

•    Technological Shifts: There is a notable
transition toward rapid testing methods,
including PCR-based assays and immunoassay-
based technologies, as manufacturers seek to
reduce turnaround times and enhance supply
chain efficiency.

•    Geographical Drivers: The market is
concentrated in regions with high industrial
activity and food processing hubs. These areas
benefit from a dense network of accredited
laboratories and proximity to major export ports,
facilitating seamless compliance with both local
and international safety mandates.

The ongoing geopolitical hostilities in Eastern Europe
and the Middle East have significantly disrupted global
food trade, placing food export shipments to Gulf
markets at risk due to the instability of critical shipping
corridors. Exports of key agricultural products have
declined sharply, with rice, bananas, and other food
items seeing steep drops, including reported declines
of up to 58% in March 2026. Large volumes of Basmati
rice and seafood remain stranded due to shipping
disruptions, while instability around the Strait of
Hormuz has driven up logistics, insurance, and fuel
costs, causing delays and container shortages. Rising
prices of imported fertilizer inputs from the Gulf are
further pressuring domestic agricultural production.

These disruptions have forced a strategic pivot
toward intensified shelf-life and stability testing to
manage extended transit times, alongside frequent
re-verification of products rerouted to alternative
destination markets. Furthermore, surging energy
costs and supply chain volatility for laboratory reagents
have increased operational overhead, accelerating an
industry wide shift toward localized, on-site testing
and mobile diagnostics to de-risk quality assurance
from centralized, vulnerable logistics hubs.

Outlook

The Indian market is poised for long-term sustainability as
the food processing industry matures. The integration of
advanced analytical tools and the expansion of third-party
testing services are expected to remain key themes. As
regulatory oversight continues to harmonize with global
standards, the demand for comprehensive contaminant
testing covering pesticides, antibiotics, toxins, and heavy
metals will serve as a critical pillar for brand protection and
public health safety.

(Source:Grand View Research, Money Control, NDTV,
Outlook Business, Deccan Chronicle, The ET)

• Electrical and Electronics Testing

India has emerged as a highgrowth market, driven by
the government's push to develop a global electronics
manufacturing hub and strengthen indigenous R&D
capabilities, including in the defence and strategic
sectors. The expansion of mandatory BIS certification
continues to create stable, non-discretionary demand
for domestic TIC services, while India has become
the fastest-growing TIC submarket in Asia-Pacific,
supported by up to USD 5 billion in production-
linked incentives. Under the Atmanirbhar Bharat
framework, scaling domestic manufacturing alongside
defence-related R&D in areas such as aerospace,
missiles, electronics, and secure communications is
increasing the need for compliance with international
certification standards, including advanced EMI/
EMC testing to support reliable and mission-critical
systems. The forthcoming USD 5 billion Mobile PLI 2.0
scheme is expected to further deepen the domestic
manufacturing base and drive incremental certified
testing requirements.

Near-term risks have risen due to the Iran-US-Israel
conflict, which has pushed up energy costs for a
country sourcing roughly half of its crude and most
LNG from the Middle East. Higher input prices are
pressuring manufacturing margins, delaying product
launches, and slowing the flow of goods entering
the certification cycle, while heightened geopolitical
uncertainty is weighing on private investment and
R&D pipelines.

Outlook

Despite these pressures, the medium-term outlook for
India's E&E TIC sector remains strong. Growth will be
supported by automation-led testing innovations, rising
demand for complex compliance services such as EMI/
EMC driven by defence and high-reliability electronics
R&D, supply-chain diversification into India, and policy-
driven manufacturing expansion. The combination of
regulatory requirements, domestic capability building
across commercial and defence sectors, and global supply-

chain realignment positions India's TIC sector for sustained
outperformance.

(Source:Manufacturing today India, Verified Market
Reports, Ministry of Defence, DRDO, MIL-STD Reamt)

4. Environment Testing Industry

4.1 Global Scenario

The global environmental testing market is evolving
rapidly, shaped by increasingly stringent compliance
requirements, advances in analytical technologies, and a
growing emphasis on sustainable operations. The market
expanded from USD 8.07 billion in 2025 to USD 8.61
billion in 2026, reflecting steady demand for accurate and
timely environmental monitoring across industrial, utility,
laboratory, agricultural, and government applications.

Environmental testing supports regulatory alignment,
public-health protection, and environmental risk
mitigation through comprehensive analysis of air, water,
soil, and noise samples. The market encompasses a
broad range of testing technologies, from conventional
methods to advanced solutions such as chromatography,
mass spectrometry, molecular diagnostics, and PCR-based
testing, enabling faster, more reliable, and increasingly
field-deployable assessments of chemical, microbiological,
physical, and radiological contaminants.

Outlook

Over the forecast period, the environmental testing
market is projected to grow at a compound annual growth
rate of 6.9%, reaching approximately USD 12.9 billion
by 2032. Growth is expected to be supported by tighter
environmental regulations, expanding sustainability
initiatives, and increased adoption of digital, AI-enabled,
and real-time monitoring solutions. While rising tariffs
and supply-chain pressures have increased procurement
costs for analytical equipment and reagents, organizations
are responding through localized sourcing and diversified
supplier strategies, supporting continued market resilience
and long-term growth. (Source:Research and markets)

The environmental testing market in India continues to
expand, driven by stricter environmental regulations,
increased industrial activity, and rising ESG compliance
across sectors. In 2025, the market generated revenues of
approximately USD 535.9 million, supported by demand
from manufacturing, infrastructure, pharmaceuticals,
and utilities. Rapid testing technologies led the market
due to faster turnaround times and growing adoption for
regulatory compliance and monitoring applications.

Outlook

Looking ahead, the India environmental testing market is
expected to grow at a CAGR of around 8.9% during 2026¬
2033, reaching an estimated USD 1,053.0 million by 2033.
Growth is anticipated to be driven by tighter enforcement
of environmental norms, sustained industrial and
infrastructure development, increased corporate focus on
sustainability disclosures, and continued adoption of rapid
and automated testing solutions. The long-term outlook for
the sector remains positive, with stable demand visibility
and opportunities for technology-led service expansion.

(Source:Grandview Research)

5. Overall Industry Outlook

Global Scenario

The global CRO, drug discovery, pre-clinical, BA/BE, CT,
TIC, food safety, E&E testing, and environmental testing
industries are positioned for continued growth despite
rising geopolitical and macroeconomic risks. Strong R&D
investments, increasing therapeutic complexity, and
rising outsourcing to specialized CROs support long-term
demand across drug discovery and pre-clinical services.
BA/BE and analytical testing continue to expand due
to generics growth and evolving regulatory standards.
In TIC and food/agri testing, supply chain globalization
and stringent compliance drive sustained activity. While
energy-linked inflation, disrupted shipping routes, and
equipment cost pressures pose near-term challenges,
digitalization, AI adoption, and supply-chain reorientation
underpin a resilient medium-term global outlook.

Indian Scenario

India's life sciences, CRO, TIC, food testing, and
environmental testing sectors are set for strong
expansion, supported by cost advantages, regulatory
reforms, and growing integration into global value chains.
Pharmaceutical CRO and drug discovery outsourcing
markets are accelerating due to rising R&D costs, patent
expiries, and India's deep scientific talent pool. Pre-clinical
and BA/BE services benefit from simplified approval
pathways, expanding clinical trial infrastructure, and
increasing generics demand. The TIC sector is strengthened
by industrial growth, mandatory certification, and PLI-

driven electronics manufacturing. Food and environmental
testing are rising due to stricter standards and supply-chain
disruptions. Overall, India remains a high-growth, strategic
hub despite global volatility.

Risks and Concerns

The Company operates in an environment marked
by heightened global uncertainty. The escalation of
geopolitical tensions, particularly the 2026 Middle East
conflict, poses significant macroeconomic risks through
rising energy prices, volatile shipping routes, and elevated
inflationary pressures. These developments may adversely
impact operating costs, laboratory consumables, freight,
and turnaround timelines across the services Vimta
provides. The risk of global growth deceleration, as
projected in revised IMF assessments, remains a source of
concern for demand visibility in export-linked segments.

Across the CRO, drug discovery, pre-clinical, and BA/BE
markets, the increasing complexity of R&D, tightening
regulations, and varying global compliance requirements
elevate execution risks. Stringent cGMP, GLP, GCP, and
REACH-driven obligations can increase project timelines
and operational costs. BA/BE studies face risks from
evolving regulatory scrutiny, data integrity expectations,
and the need for robust bioanalytical validation. Delays or
changes in regulatory frameworks despite recent process
simplifications in India remain a key area of uncertainty.

The TIC and analytical testing industries face challenges
from equipment cost inflation, reagent supply instability,
and rising expectations for advanced testing capabilities.
The food and agri-testing ecosystem remains exposed
to logistics disruptions, supply chain bottlenecks, and
volatile fertilizer import prices, which can affect sample
flow and test volumes. In electrical and electronics testing,
especially for defence EMI/EMC services, rising input costs
and delayed capital expenditure cycles may slow customer
investments.

Competitive pressures are intensifying across all service
lines due to consolidation, global CRO expansion,
and increased entry of domestic players. Maintaining
pricing discipline amid tightening margins, especially in
commoditized segments, is an ongoing challenge. Talent
availability and retention, particularly in specialized
scientific and regulatory roles, represent structural
operational risks.

Cybersecurity, data protection, and confidentiality risks
also remain high due to the sensitive nature of client
research data, clinical records, and regulatory submissions.
The shift toward digital and decentralized testing models
increases exposure to system vulnerabilities, requiring
sustained investment in secure digital infrastructure.

Overall, while long-term demand fundamentals remain
strong, the Company must navigate an environment

characterized by geopolitical volatility, regulatory
complexity, supply chain fragility, cost pressures, and
intensifying competition, any of which may affect
operational performance and growth trajectories.

Competitive Landscape

Global Landscape

Globally, the CRO, drug discovery, pre-clinical, bioanalytical,
and TIC industries are witnessing increased consolidation,
driven by rising R&D complexity, demand for end-to-end
capabilities, and the need for scale in technology and
regulatory compliance. Large multinational CROs are
expanding portfolios through acquisitions in advanced
modalities, bioanalysis, toxicology, and digital clinical
platforms. The TIC industry is also consolidating, with
leading players strengthening capabilities in food testing,
E&E testing, environmental testing, and specialized
regulatory services. Competitive intensity continues to
increase as technology-enabled service models AI-driven
discovery, biosimulation, organ-on-chip, rapid diagnostics,
and automated laboratories differentiate global leaders
from mid-size and niche providers.

India Landscape

India's competitive environment is strengthening as
the country emerges as a preferred global hub for CRO,
drug discovery outsourcing, BA/BE studies, analytical
testing, and TIC services. Domestic CROs are expanding
capacity, building GLP/GCP/GMP - aligned infrastructure,
and investing in toxicology, bioanalysis, DMPK, and
specialty chemistry capabilities. Regulatory reforms and
cost advantages are attracting global partnerships, while
local consolidation is accelerating as firms seek scale,
deeper scientific expertise, and multi-site capabilities.
In TIC, competition is intensifying across food, E&E, and
environmental testing, supported by expanding PLI
incentives, mandatory certification requirements, and
growing demand for EMI/EMC, and high-reliability testing.
Overall, India's competitive positioning is improving as
companies integrate advanced technologies, expand
geographic reach, and align with global quality standards.

Outlook for VIMTA

The outlook for Vimta remains constructive over the
medium to long term, supported by favourable industry
growth trends and sustained outsourcing across its service
lines, alongside increasing opportunities to leverage AI and
other technological advancements to enhance productivity,
turnaround times, and operating efficiency. However, the
short-term outlook remains uncertain given potential
disruption from supply-chain constraints in critical reagents
and chemicals, volatility in food-testing volumes linked to
trade flows between India, the Middle East, and Europe,
constraints in sourcing for large-animal testing and soil
imports for European REACH-related programs, and rising

manpower costs amid growing competition for scientific
talent. Notwithstanding these near-term uncertainties, the
Company remains well positioned to navigate such factors
through its diversified service portfolio, strong domestic
franchise, expanding international client base, proven
quality and compliance track record, specialised scientific
capabilities, economies of scale, and ability to ramp up
capacity in line with demand. The Company's experienced
senior management and scientific leadership further
strengthen execution resilience and strategic agility. Taken
together, these strengths provide a strong foundation for
sustained growth, deeper client engagement, improved
operating leverage, and a positive medium- to long-term
outlook.

2.1 OUR STRENGTHS & STRATEGIES

Your Company's strengths have been its human resources,
processes, partnerships, and unparalleled laboratory
infrastructure. VIMTA provides services to its customers
through processes and procedures that are oriented to
deliver strong compliance with regulatory requirements,
thereby maintaining the integrity of data and the reports,
and minimizing risks to the customers. VIMTA has a
track record of strong science and quality over a 42-year
history, earning it a reputation as a leading, high-quality,
sophisticated contract research and testing organization.
Over the years, it has developed a wide range of capabilities
and offers high-value, advanced testing services to support
product research and development. VIMTA believes it is
amongst the leaders in the domestic market for GMP
analytical services and GLP nonclinical services. The GMP,
GLP and GCP compliant services have been successfully
audited several times during the year by customers,
regulatory agencies, accrediting and certifying bodies.

In addition to its established pre-clinical research,
clinical research, and analytical capabilities, VIMTA has
strengthened its biopharmaceutical services platform
through backward integration across the biologics and
peptides drug development continuum. The Company has
introduced integrated contract research and development
services spanning clone development to product
development, including upstream and downstream
process development, impurity control studies, and titer
enhancement. This integrated capability enables VIMTA
to engage across the biologics and peptides development
value chain, thereby enhancing scientific continuity,
strengthening customer relevance, and expanding value
capture across multiple stages of development. It positions
the Company as a differentiated, end-to-end contract
research and development partner for biologics and
peptides, with the ability to deliver integrated solutions
spanning the service continuum.

Similarly, in the food testing business, VIMTA is recognized
as the leader not only in its testing expertise, technologies,
and quality, but also in its scale. VIMTA has the largest pan-

India network of full-fledged laboratories, positioning it to
take more market share within the industry and continue
to grow. It is counted as a center of excellence for the
country by government organizations as well.

In both food and above-mentioned product development
services for biopharmaceutical companies, the broad
spectrum of our services, cutting edge instrumentation
and facilities with large footprint allows VIMTA to offer
a comprehensive set of scientific laboratory services.
Further, the scale of services enables us to continuously
develop and refine our expertise and enhance our ability to
bend the cost and time curve of services to our customers.
The Company has strengthened its presence in Electronics
and Electrical testing and is better positioned to serve the
defence, industrial, telecom, and medical devices sectors
with enhanced operational capacities and wider market
reach.

Across all its business units, the company believes that
the technical and scientific expertise of its dedicated
employees provides it with a competitive advantage. With
a large pool of scientists holding advanced, masters or
equivalent degrees, including PhDs, VIMTA has an edge
due to the varied-scientific talent pool. The compliment
of scientific domain expertise is leveraged often to
create innovative as well as comprehensive solutions for
customers across industries.

VIMTA has strategically developed and oriented its research
and testing laboratory services towards the lucratively
growing industries and their outsourcing needs, to position
itself to win high value-add business. The service model
is focused on providing customers with both stand-alone
services as well as a mix of full-service contracts. VIMTA
leverages its experience in managing laboratory operations
for over 40+ years, to create efficient processes delivering
quality outputs that help in maintaining long-term stable
customer relationships. Furthermore, your company
is focused on continuous operational improvements
and prudent cost management. Your company believes
that its strong financial profile demonstrates the quality
and efficiency of the business model and positions it for
continued growth.

2.2 KEY FINANCIAL RATIOS

Reason for % change from previous year: Debt service
coverage ratio improvement aided by decrease in interest

cost owing to debt repayment and increase in earnings
available for debt service driven by higher operating
revenue.

2.3    MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/
INDUSTRIAL RELATIONS, INCLUDING NUMBER OF PEOPLE
EMPLOYED

Vimta has highly talented workforce of 1384 employees
out of which 71.11% are scientists. During the year, with
the commitment to upskill and retain talent, the company
continued to provide various trainings as well as other
employee engagement activities. We are focused on
increasing productivity of our employees and engaging
them well for achieving greater connect to business goals
and objectives using various initiatives. The company
is using technology effectively to drive some of these
employee centric initiatives.

2.4    INFRASTRUCTURE

Vimta is one of India's largest Contract Research & Testing
Organisations, headquartered in Hyderabad. As on 31^st
March 2026, the Company has a network comprising its
Registered Office & Central Laboratory at Cherlapally,
Hyderabad, a Life Sciences Campus at Genome Valley,
Hyderabad. The Company also operates one (1) Electricals &
Electronics laboratory and six (6) Food branch laboratories,
and one (1) liaison office in Kolkata. The total built-up area
of the laboratories is approximately 6,00,000 sq. ft.

2.5    FORAY INTO BIOLOGICS

Vimta has forayed into the niche segment of contract
research and development of biologics and peptides in
the year 2025-26. The program commenced with strategic
manpower recruitment, assessment of infrastructure and
technical requirements across upstream, downstream, and
analytical development functions. Based on the project
scope, procurement of advanced laboratory equipment
and development of dedicated laboratory infrastructure
were systematically executed. The laboratories have
been fully commissioned, including completion of
equipment installation, operational qualification and
facility readiness. This was followed by establishment of
quality and operational systems to support compliant and
efficient biopharmaceutical development activities.

We have been engaged in advanced discussions with
several customers and are confident of successfully
commercializing this business in FY 2026-27, in line with
our expectations.

2.6    RISKS & CONCERNS

Risks are inherent to any business. They are managed by
the Company through a risk management process of risk
identification and risk mitigation, through risk reduction
strategies & plans and continuous monitoring of the
effectiveness of the risk mitigation measures to control
them.

The Company has established a robust risk management
framework for identifying, assessing, monitoring, and
mitigating risks across its operations. The Risk Management
Committee continues to oversee the implementation and
effectiveness of the Company's Risk Management Policy
and Enterprise Risk Management Framework, supported
by a comprehensive Risk Register for systematic monitoring
and management of key risks. The Board of Directors
periodically reviews the risk management framework to
ensure that significant risks are appropriately identified
and mitigated, and the Company maintains adequate
internal control systems and procedures commensurate
with the nature and size of its business.

Vimta continues to strive to stay ahead on the competition
curve through creation of new service opportunities,
operational excellence and uncompromising commitment
to quality, regulatory compliance, and customer service.
However, there may be certain risk factors that could
adversely impact business.

Quality related risks: Poor performance in regulatory audits
and accreditation body audits could adversely impact
our business. Maintaining quality and compliance is part
of every activity in the organization. The management
leads the quality culture, understanding very well that
this is critical for business success and survival. However,
unforeseen poor or inadequate performance by employees
could lead to regulatory risks. There are adequate built in
controls and checks to mitigate this risk. Nevertheless,
these risks cannot be ruled out.

IT related risks: The Company's operations are dependent
on the reliability, security, and uninterrupted functioning
of its laboratory, data management, and communication
systems. Any system failure, cyber-attack, unauthorized
access, or data breach could adversely affect operations
and business continuity. To mitigate these risks, the
Company maintains robust backup and disaster recovery
mechanisms, continuously upgrades its IT infrastructure.
Systems and tools such as multi stage authentication,
least-privilege access, device validation, and enhanced
monitoring across critical digital assets have been
implemented. However, despite these measures, the risk
of disruption cannot be entirely eliminated.

Service failure related risks: We are a scientific services
organization and quality of service to the customers is
critical for growth of our business. Quality of service
is related to our ability to deliver reports and projects
with scientifically reliable and accurate information;
compliance to contractual requirements, regulations,
standards, guidelines as applicable; and service customers
with professional and ethical conduct. If we fail to
perform our services per these expectations, we could
lose confidence of our customers who may choose not
to award further work to us or make claims against us
for breach of our contractual obligations. Any such action
could have a material adverse effect on our reputation,

business, results of operations, financial condition and/
or cash flows. Our mitigation strategy is directed towards
continuously strengthening our capabilities and learning
and implementing best practices. In addition, we have
strengthened our customer feedback mechanisms through
stringent review systems and appropriate preventive
actions.

Financial risks: Vimta makes continuous investments
in capacity expansion, market reach and new business
streams. These investments are based on good business
judgement through market study, backed by strong
planning and risk mitigation measures. However, time
factors and market dynamics could delay results and/
or create risks in obtaining returns on such investment.
Other financial risks include bad debts from customers for
various reasons; and liquidity risks as a result of any poor
cash flows that could further lead to non-servicing of loans.
Your company has dedicated groups for customer relations
management and credit control. There are adequate
checks to identify risky customer accounts and control
business with them to minimize risks. Nevertheless, these
risks cannot be completely ruled out.

Data risks: As a third-party provider of services, we often
get into various service agreements, with customers
including requirements on data confidentiality, data
security and IP protection. Given the large scale of human
resources involved in our organization, and the inherent
vulnerability of IT solutions deployed, we may be at risk as
a result of unintentional violations of customer contracts
and agreements, which could further lead to significant
legal risks for the business. This is mitigated through strong
physical security and electronic security systems; trainings
to employees, business continuity processes such as
electronic data disaster recovery systems; confidentiality
oaths from employees; well-propagated whistle blower
policies etc. Nevertheless, these risks cannot be completely
ruled out.

Growth and personnel related risks: Growth if not
managed well places a strain on human, operational
and financial resources. To manage our growth, we must
continue to attract and retain talented staff across the
business operations. Management pays strong attention
to continuously building and improving operating and
administrative systems to enhance productivity of
personnel and processes and also to have a stronger
administrative control on the businesses spread at various
locations across the country. Given the dependency of
business on quality of personnel there are inherent risks
associated with personnel's abilities and ethical conduct,
which may impact adversely customer satisfaction. Thus,
if we are unable to manage our growth effectively, we
could lose business from our customers. Further, if we
are unable to recruit, retain and motivate key personnel,
our business could be adversely affected. Our success

depends on the collective performance, contribution and
expertise of our senior management team and other key
personnel throughout our businesses, including qualified
management, professional, operational, scientific,
technical, and business development personnel. There is
significant competition for qualified personnel in all the
industries that we operate in, particularly personnel with
significant experience and expertise. The loss of any key
executive, or our inability to continue to recruit, retain and
motivate key personnel in a timely fashion, may adversely
impact our ability to compete effectively and grow our
business and negatively affect our ability to meet our short
and long-term business and financial goals. Company
takes several steps to maintain a motivated and engaged
team. Initiatives such as ESOPs to attract & retain talent,
rewards and recognition programs, personnel competency
enlargement programs etc., are among the many best
practices followed by the company. Nevertheless, the risks
related to growth and personnel cannot be completely
ruled out.

Other risks: A few more such risks and concerns are,
change in regulations and regulatory environment;
downturn in economies that our business operates in;
steep drop-in service prices from competition; increase
in prices of input material; changes in laws such as tax
laws etc. External risks also include foreign exchange
risks; interest rate risks; risks from terrorism etc. Further
there are also risks of critical equipment breakdowns,
power breakouts, short supply of any input material or
consumable, fire, and other natural calamities. These are
handled through a robust business continuity plan where
adequate backups are created and tested from time to time
for their effectiveness, nevertheless, these risks cannot be
completely ruled out. It is possible that the above list of
risks does not cover all risks exhaustively. However, being
an experienced organization, the mitigation measures are
in-built into the organization, its strategy and processes,
which have so far helped the organization go through, and
grow through, various phases of business and the market
situations. It will be management's continuous endeavour
to develop strategies that would help the organization de¬
risk its business & grow with opportunities.

3 DIVIDEND

Your directors have recommended a final dividend of ^ 2/-
per equity share of ^ 2/- each, for financial year 2025-26,
subject to approval of members.

Dividend Distribution Policy

The Dividend Distribution Policy as formulated and
adopted by the Board in terms of Regulation 43A of the
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 is available on the Company's website
and can be accessed at: httDs://vimta.com/wD-content/
uploads/Dividend-Distribution-Policv.pdf

4 TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION & PROTECTION FUND (IEPF)

Members may please note that as per the provisions of Sections 124 & 125 of the Companies Act, 2013, read with Investor
Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, dividends that remain unclaimed
for a period of seven consecutive years from the date of transfer to the Unpaid Dividend Account shall be transferred to the
Investor Education & Protection Fund.

The details of the unclaimed dividends as on 31^st March 2026 and the due dates on which those unclaimed dividends are liable
to be transferred to the Investor Education & Protection Fund are given below:

5    TRANSFER TO RESERVES

No amount is proposed to be transferred to the reserves
during the year under review.

6    CORPORATE GOVERNANCE REPORT

In compliance with the provisions of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, a separate Report on Corporate Governance,
together with a certificate from a Practicing Company
Secretary confirming compliance with the conditions
of Corporate Governance, is attached, which forms an
integral part of this Board's Report.

The Corporate Governance Report is enclosed as Annexure
A to this Report.

7    ANNUAL RETURN

Pursuant to Section 92(3) of the Companies Act, 2013
read with Rule 12(1) of the Companies (Management
and Administration) Rules, 2014, a copy of the Annual
Return of the Company is available on the website of the
Company and can be accessed at https://vimta.com/wp-
content/uploads/MGT-7-Website-Upload.pdf

8    CORPORATE SOCIAL RESPONSIBILITY

During the year under review, the Company has spent a
total sum of R 1,39,21,028/- (Rupees One Crore Thirty-
Nine Lakhs Twenty-One Thousand Twenty-Eight only) on
CSR activities as approved by the CSR Committee. The
disclosure required under Rule 8 of Companies (Corporate
Social Responsibility Policy) Rules, 2014 is enclosed as
Annexure I to this report. There is a surplus of R 871
(Rupees Eight Hundred Seventy-One) spent during the
financial year under review.

9    MEETINGS OF THE BOARD

During the year under review, four (4) Meetings of the
Board 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 limits prescribed under the
Companies Act, 2013.

The Board Meetings of the Company were convened and
conducted in compliance with the applicable provisions
of the Companies Act, 2013 and Secretarial Standard on
Meetings of the Board of Directors (SS-1).

10    SHARE CAPITAL

As at the end of the year, following is the status on share
capital:

1.    Authorised share capital: R 11,99,99,500 (Rupees
Eleven Crore Ninety-Nine Lakhs Ninety-Nine Thousand
Five Hundred only) divided into 5,99,99,750 equity
share of R 2/- each.

2.    Paid up capital: R 8,93,38,710 (Rupees Eight Crore
Ninety-Three Lakhs Thirty-Eight Thousand Seven
Hundred and Ten only) divided into 4,46,69,355
equity shares of R 2/- each.

3.    ESOPs allotted during the year under review: 1,82,059
equity shares of R 2/- each to the Employees upon
exercise of Employee Stock Options under "Vimta Labs
Employee Stock Option Plan 2021". The disclosure
under Section 67(3)(c) of the Act in respect of voting
rights not exercised directly by the employees of the
Company is not applicable.

11    ISSUE OF SHARES

During the financial year under review, the Company has
not:

i)    Issued any shares with differential voting rights
pursuant to provisions of Rule 4 of the Companies
(Share Capital and Debenture) Rules, 2014.

ii)    Issued any sweat equity shares to any of its employees,
pursuant to the provisions of Rule 8 of the Companies
(Share Capital and Debenture) Rules, 2014.

No shares were bought back during the financial year
under review.

Bonus Issue

The Board of Directors, at its meeting held on 28^th April
2025, recommended the issue of bonus equity shares,
which was subsequently approved by the shareholders at
the 35^th Annual General Meeting held on 06^th June 2025.
The shareholders approved the issuance of 2,22,52,784
(Two Crore Twenty-Two Lakh Fifty-Two Thousand Seven
Hundred and Eighty-Four) bonus equity shares in the ratio
of 1:1, i.e., 1 (One) bonus equity share of ^2/- each for
every 1 (One) fully paid-up equity share held.

Pursuant to the aforesaid approval, the Board of Directors
allotted the said bonus equity shares on 14^th June 2025, to
the eligible shareholders as on the record date, i.e., 13^th
June 2025.

12    FINANCING THE PURCHASE OF SHARES OF THE COMPANY

During the financial year under review, the company has
not given, either directly or indirectly, nor by means of a
loan, guarantee, the provision of security or otherwise,
financial assistance for the purpose of, or in connection
with, a purchase or subscription made or to be made, by
any person of or for any shares in the company in violation
of the provisions of Section 67 of the Companies Act, 2013.

13    EMPLOYEE STOCK OPTION PLAN

The Members of the Company, at their 31^st Annual General
Meeting held on 05^th July 2021, approved the "Vimta Labs
Employee Stock Option Plan 2021" ("ESOP 2021") and the
grant of stock options to the eligible employees of the
Company under the said plan. Pursuant to the same, the
Company obtained in-principle approval from the Stock
Exchanges for the grant of 6,63,234 stock options.

Further, the Members of the Company, at their 35^th Annual
General Meeting held on 06^th June 2025, approved the
issue of bonus equity shares in the ratio of 1:1 to the
eligible members as on the record date, i.e., 13^th June 2025.
Consequent to the bonus issue, the Company obtained
additional in-principle approvals from the Stock Exchanges
for 5,18,260 stock options under ESOP 2021.

Accordingly, the total in-principle approvals obtained from
the Stock Exchanges aggregate to 11,81,494 stock options
under ESOP 2021.

Out of the aforesaid, the Nomination and Remuneration
Committee, at its meetings held from time to time, has
granted stock options at various stages, as detailed below:

On receipt of the in-principle approval from both the Stock
Exchanges (post bonus issue) for 5,18,260 grants, eligible
employees were granted benefits pursuant to Clause 13.3
of the Vimta Labs Employee Stock Option Plan, 2021.
Consequently, the total adjusted eligible employee grants
pursuant to the bonus issue stood at 3,41,099.

Further, during the financial year under review, the
company allotted 1,82,059 equity shares of ^ 2/- each to
the Employees upon exercise of Employee Stock Options
under "Vimta Labs Employee Stock Option Plan 2021."

The details of "Vimta Labs Employee Stock Option Plan
2021" form part of the Notes to Accounts of the Financial
Statements in this Annual Report.

The disclosures pursuant to Regulation 14 of Securities and
Exchange Board of India (Share Based Employee Benefits
and Sweat Equity) Regulations, 2021 can be accessed
at https://vimta.com/wD-content/uploads/Rea 14.pdf
and the same are enclosed as Annexure II to this report
together with a certificate obtained from the Secretarial
Auditors confirming compliance with the Companies Act,
2013 and the Securities and Exchange Board of India (Share
Based Employee Benefits and Sweat Equity) Regulations,
2021, which is enclosed as Annexure III to this report.

14    CHANGE IN NATURE OF BUSINESS

There was no change in the nature of business of the
Company during the financial year under review. However,
the Company has forayed into Contract R&D of Biologics
and Peptides, in addition to its existing services.

15    CHANGES IN MEMORANDUM OF ASSOCIATION

During the financial year under review, the Memorandum
of Association (MoA) of the Company was amended,
pursuant to the approval accorded by the shareholders at
the 35^th Annual General Meeting held on 06^th June 2025.
Specifically, the Main Object Clause (Clause III—A) was
altered to enable the Company to undertake activities in
the Biologics Contract Research and Development and
Manufacturing (CDMO) segment. This includes contract

development, analytical testing, and other R&D services
relating to biologics and peptide-based drug development
and manufacturing support. The aforesaid amendment
was carried out in strict compliance with the applicable
provisions of the Companies Act, 2013.

16    PARTICULARS OF DEPOSITS

During the financial year under review, the company has
not accepted any deposit pursuant to the provisions of
Sections 73 and 76 of the Companies Act, 2013 read with
the Companies (Acceptance of Deposits) Rules, 2014.
Thus, there is no non-compliance with the requirements
of Chapter V of the Companies Act, 2013.

17    SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

During the financial year under review, no company has
become or ceased to be a subsidiary, joint venture, or
associate company of the Company.

18    PARTICULARS OF LOANS AND GUARANTEE GIVEN,
SECURITY PROVIDED AND INVESTMENT MADE

As required under Section 186(4) of the Companies Act,
2013, particulars of loans, guarantees given, securities
provided, and investments made by the Company are
disclosed in Annexure IV and the Notes to the Financial
Statements.

(Refer note no. 45 of Financial Statements).

19    PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

Disclosures pertaining to remuneration and other details
as required under Section 197(12) of the Companies Act,
2013 read with Rule 5(1) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014
are provided in Annexure V to this Report.

Any Member interested in obtaining information pursuant
to Rule 5(2) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, may
write to the Company Secretary at the Registered Office of
the Company or send an email to shares@vimta.com.

20    AUDITORS

a)    Independent Auditor's Report

During the financial year under review, the Company's
auditors have not made any qualification, reservation
or adverse remark or disclaimer in their Report on the
financial statements of the Company and there were no
instances of frauds reported by the auditors under Section
143(12) of the Companies Act, 2013.

b)    Statutory Auditors

Pursuant to the provisions of Sections 139, 142 and other
applicable provisions of the Companies Act, 2013 read
with the rules made thereunder, M/s Gattamaneni & Co.,
Chartered Accountants (Firm Reg. No. 009303S) were
appointed as Statutory Auditors of the Company for a term
of five consecutive years from the conclusion of the 32^nd
Annual General Meeting (AGM) held on 25^th June 2022 on
a remuneration mutually agreed by the Board of Directors
and the Auditors. They hold office until the conclusion of
the 37^th Annual General Meeting to be held in the calendar
year 2027. The auditors have confirmed that they hold
valid certificate issued by the Peer Review Board of the
Institute of Chartered Accountants of India and are eligible
to continue to hold the office for rest of their tenure.

c)    Internal Auditors

Pursuant to the provisions of Section 138 of the Companies
Act, 2013 and based on the recommendations of Audit
Committee, the Board of Directors at their meeting held
on 06^th May 2026, have reappointed M/s Chaitanya V &
Associates, Chartered Accountants as Internal Auditors
of the Company for the financial year 2026-27. M/s
Chaitanya V & Associates, Chartered Accountants,
have confirmed their willingness and eligibility to be
reappointed as the Internal Auditors of the Company.
Further, the Audit Committee in consultation with Internal
Auditors, formulated the scope, functioning periodicity
and methodology for conducting the Internal Audit.

d)    Cost Auditors

Pursuant to the provisions of Section 148 of the
Companies Act, 2013 read with the Companies (Audit
and Auditors) Rules, 2014, the Board of Directors at its
meeting held on 17^th July 2025, took note of the change in
constitution of M/s Lavanya and Associates, Cost Auditors,
from proprietorship firm to Limited Liability Partnership,
namely M/s Lavanya and Associates LLP (LLP Identification
Number: ACO-7111), and treated the same as a casual
vacancy. Based on the recommendation of the Audit
Committee, the Board approved the appointment of M/s
Lavanya and Associates LLP as Cost Auditors for FY 2024-25
and FY 2025-26 at a remuneration of ^50,000/- (Rupees
Fifty Thousand only) plus applicable GST per financial year.

Further, based on the recommendation of the Audit
Committee, the Board at its meeting held on 06^th May
2026, approved the re-appointment of M/s Lavanya and
Associates LLP as Cost Auditors of the Company for the
financial year 2026-27 at a remuneration of ^50,000/-
(Rupees Fifty Thousand only) plus applicable GST.

In accordance with the provisions of the Companies Act,
2013, a resolution seeking ratification of the remuneration
payable to the Cost Auditors for financial years 2024¬
25, and 2025-26, is included in the Notice of 36^th Annual
General Meeting.

The Company has received the necessary consent and
certificate of eligibility from the Cost Auditors confirming
their eligibility for appointment.

e)    Maintenance of cost records

The Company has maintained the cost records as specified
by the Central Government under sub-section (1) of
section 148 of the Companies Act, 2013 for the services
covered under the said section.

f)    Secretarial Auditors

Pursuant to the provisions of regulation 24A of the
Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and
Section 204 of the Companies Act, 2013, read with
the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the Shareholders
at the 35^th Annual General Meeting appointed M/s D
Hanumanta Raju & Co., Practicing Company Secretaries as
Secretarial Auditors on a remuneration mutually agreed by
the Board of Directors and the Secretarial Auditors for a
term of five consecutive years from the conclusion of the
35^th Annual General Meeting until the conclusion of the
40^th Annual General Meeting of the Company to be held
in the year 2030. The auditors have confirmed that they
hold valid Peer Review certificate issued by the Institute of
Company Secretaries of India and are eligible to continue
to hold the office for rest of their tenure.

The Secretarial Auditors' Report for financial year 2025-26
does not contain any qualification, reservation or adverse
remark. The Secretarial Audit Report for the financial year
2025-26 in the prescribed form MR-3 is enclosed with this
Report as Annexure VI.

g)    Annual Secretarial Compliance Report

The Secretarial Compliance Report for the financial year
ended 31^st March 2026, required under the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, has been issued by M/s D. Hanumanta Raju & Co.,
Practicing Company Secretaries, for submission to both
the Stock Exchanges in due compliance with the applicable
guidelines.

h)    Disclosure as per Section 143(12)

During the financial year under review, neither the Statutory
Auditors nor the Secretarial Auditor have reported any
offence of fraud committed by the Company's officers or
employees under Section 143(12) of the Act to the Central
Government or to the Audit Committee.

21 AUDIT COMMITTEE

The Board has constituted the Audit Committee as per the
provisions of Section 177 of the Companies Act, 2013 and
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. The composition, attendance, powers
and role of the Audit Committee are included in Corporate
Governance Report. All the recommendations made by the
Audit Committee were accepted by the Board of Directors.

22    COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD
MEETINGS AND GENERAL MEETINGS

During the financial year under review, the Company has
complied with the Secretarial Standards issued by the
Institute of Company Secretaries of India as applicable to
Board Meetings and General Meetings.

23    POSTAL BALLOT

During the financial year under review, no Postal Ballot
notice was issued.

24    DIRECTORS' RESPONSIBILITY STATEMENT

Directors' Responsibility Statement as required under
Section 134 (5) of the Companies Act, 2013 (the Act),
Directors of your Company hereby state and confirm that:

a)    In the preparation of the annual accounts, the
applicable accounting standards have been followed,
along with proper explanation relating to material
departures, if any;

b)    They had selected such accounting policies as
mentioned in the notes to the financial statements
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 31^st March 2026 and of the profit and
loss of the Company for the year ended on that date;

c)    They had taken proper and sufficient care for the
maintenance of adequate accounting records in
accordance with the provisions of the Companies
Act, 2013 for safeguarding the assets of the company
and for preventing and detecting fraud and other
irregularities;

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

e)    They had laid down proper internal financial controls
to be followed by the Company and that such internal
financial controls were adequate and were operating
effectively; and

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

25    DIRECTORS AND KEY MANGERIAL PERSONNEL

The Board of Directors of the Company is constituted in
compliance with the requirements of the Companies Act,
2013 and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. It comprises an
appropriate mix of Executive Directors and Non-Executive
Independent Directors, including a Woman Independent
Director

a)    Directors retiring by rotation

In accordance with the provisions of the Companies Act,
2013 and the Articles of Association of the Company, Mr.
Harriman Vungal (DIN: 00242621), Executive Director
- Operations, retires by rotation at the ensuing Annual
General Meeting and, being eligible, offered himself for
re-appointment. The proposal for his re-appointment
is included in the Notice of the Annual General Meeting
(AGM) along with the requisite details. Subject to his
re-appointment, Mr. Harriman Vungal will continue as
Executive Director - Operations for the remainder of his
tenure.

b)    Changes in Directorship/Committee Position

During the financial year under review, there was no
change in the composition of the Board except for the
reappointment of Dr. Yadagiri R Pendri (DIN: 01966100) as
an Independent Director. Similarly, there was no change in
the composition of the Board Committees during the year
under review.

Currently, the Board has five committees: The Audit
Committee, Nomination and Remuneration Committee,
Stakeholders' Relationship Committee, Corporate
Social Responsibility Committee and Risk Management
Committee.

Composition of the committees is given below.

Note: The Board of Directors, at its meeting held on 06^th

May 2026, approved the reconstitution of the Corporate
Social Responsibility (CSR) Committee. Accordingly, the
composition of the CSR Committee with effect from 07th
May 2026 is as follows:

Disclosure by Directors

None of the Directors of the Company are disqualified as
per the provisions of Section 164(2) of the Companies Act,
2013, and the Directors have made necessary disclosures
to this effect. Further, the Company has obtained a
Compliance Certificate pursuant to Regulation 34(3) and
Schedule V of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 from M/s D. Hanumanta
Raju & Co., Practicing Company Secretaries. The said
certificate is annexed to this report.

c)    Appointment/ Re-appointment

i.    At the 35^th AGM held in 2025, Dr. Yadagiri R Pendri
(DIN:01966100) was reappointed as an independent
director, not liable to retire by rotation, for the second
and final term of five years commencing from 10^th
August 2025 to 09^th August 2030;

ii.    The Board of Directors in their meeting held on 06^th
May 2026, on recommendation of Nomination and
Remuneration Committee and approval of Audit
Committee, has re-appointed Dr. S P Vasireddi
(DIN:00242288) as an Executive Chairman, liable
to retire by rotation, for a term of five (5) years
commencing from 01^st July 2026 to 30^th June 2031,
subject to the approval of the shareholders at the
ensuing Annual General Meeting.

d)    Changes in the Key Managerial Personnel and their terms
and conditions of appointment

Dr. Sivalinga Prasad Vasireddi (DIN: 00242288), Executive
Chairman, Ms. Harita Vasireddi (DIN: 00242512),
Managing Director, Mr. Harriman Vungal (DIN: 00242621),
Executive Director - Operations, Mr. Satya Sreenivas

Neerukonda (DIN: 00269814), Executive Director, Mr.
Siva Rama Krishna Kambhampati, Chief Financial Officer
and Ms. Sujani Vasireddi, Company Secretary, are the Key
Managerial Personnel of the Company within the meaning
of Sections 2(51) and 203 of the Companies Act, 2013 read
with the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014.

There have been no changes in the Key Managerial
Personnel during the financial year under review.

e)    Change in terms and conditions of Appointment

During the financial year under review, the shareholders
approved changes in the terms and conditions of
appointment, including remuneration, of the following Key
Managerial Personnel at the 35^th Annual General Meeting:

i.    Ms. Harita Vasireddi, Managing Director (DIN:
00242512);

ii.    Mr. Harriman Vungal, Executive Director - Operations
(DIN: 00242621); and

iii.    Mr. Satya Sreenivas Neerukonda, Executive Director
(DIN: 00269814).

Mr. Siva Rama Krishna Kambhampati was appointed as
the Chief Financial Officer of the Company at the Board
Meeting held on 24^th January 2025, with effect from
6^th March 2025. There was no change in the terms and
conditions of his appointment during the financial year
under review.

During the financial year under review, there was no
change in the terms and conditions of appointment of Ms.
Sujani Vasireddi, Company Secretary & Compliance Officer
of the Company.

f)    Declaration by Independent Directors

As required under Section 149(7) of the Companies Act,
2013, all the Independent Directors of the Company have
submitted declarations confirming that they meet the
criteria of independence prescribed under Section 149(6)
of the Companies Act, 2013 read with Regulation 25 of
the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.

g)    All the Independent Directors of the Company are
registered with and are members of the Independent
Directors Databank maintained by the Indian Institute of
Corporate Affairs (IICA).

h)    It is hereby declared that in the opinion of the Board, each
independent director appointed is a person of integrity
and possess all the relevant expertise and experience
(including proficiency). The Company has imparted
necessary familiarization programme to the independent
directors.

i)    During the financial year under review, Dr. Yadagiri R Pendri
(DIN: 01966100), Independent Director of the Company,
was re-appointed at the 35^th Annual General Meeting.

26    POLICY ON DIRECTORS' APPOINTMENT AND
REMUNERATION

Based on the recommendation of the Nomination
and Remuneration Committee, the Board of Directors
has approved and adopted a Policy for the selection,
appointment and remuneration of Directors, Key
Managerial Personnel and other employees of the
Company, in accordance with the requirements of Section
178(3) of the Companies Act, 2013.

The Nomination and Remuneration Policy and the Board
Diversity Policy are set out in Annexure VII and can also be
accessed on the website of the Company at

Nomination and Remuneration Policy

https://vimta.com/wD-content/uploads/NOMINATION-

AND-REMUNERATION-POLICY.pdf

Board Diversity Policy

https://vimta.com/wp-content/uploads/Board-Diversitv-

Policv.pdt

27    HUMAN RESOURCES

Our success depends on the collective performance,
contribution, and expertise of our senior management
team and several key personnel across the organization,
including scientific, technical, administrative, and other
business-enabling functions such as business development.
With an employee base of 1384, the Company leverages
diverse skills and domain expertise to build a scientifically
strong and quality-driven organization. Vimta believes
that its human resources are key to achieving sustainable
business growth. Accordingly, to ensure employee
satisfaction, the Company provides a safe, conducive,
and productive work environment. Continuous efforts are
made to attract new talent and retain existing employees.

To establish a strong connection with employees, several
employee engagement initiatives are undertaken.
Training and skill development programmes are regularly
conducted to promote a culture of continuous learning.
Specialised skill development and training programmes
are also organised for identified talent pools. The
Company continued its focus on employee well-being by
organising mental health and wellness programmes aimed
at promoting emotional resilience and stress management
among employees. Further, various outdoor sports and
recreational activities were introduced to encourage
physical fitness, team bonding, and a healthy work-life
balance, thereby fostering a positive and engaging work
environment.

Keeping pace with technological advancements, the
Company has digitalised several HR processes through
substantial investments in technology and automation.

Employees are sufficiently empowered, and the Company
believes that such a work environment enables teams to
achieve higher levels of performance. The unwavering
commitment of its employees continues to be the driving
force behind the Company's profitable growth. Your
Company appreciates the dedication, spirit, and valuable
contributions of its employees.

28    PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH
RELATED PARTIES

All the contracts/ arrangements/ transactions entered by
the Company during the year under review with related
parties were in the ordinary course of business and at
arm's length basis. The particulars of such contracts
or arrangements with related parties, pursuant to the
provisions of section 134(3)(h) of the Companies Act, 2013
and Rule 8 of the Companies (Accounts) Rules, 2014, in the
prescribed form AOC-2 is enclosed as Annexure VIII to this
report.

All Related Party Transactions are placed before the Audit
Committee and the Board of Directors for their respective
approvals. Omnibus approval of the Audit Committee
is obtained in accordance with the provisions of the
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, and in compliance with the applicable
circulars, notifications, and FAQs relating to Industry
Standards on "Minimum Information to be Provided to the
Audit Committee and Shareholders for Approval of Related
Party Transactions" for transactions that are repetitive in
nature and can be foreseen.

The Company has formulated a Policy on Materiality of
Related Party Transactions and on dealing with Related
Party Transactions, including amendments made thereto
from time to time, for the purpose of identification,
monitoring, and regulation of such transactions. The said
Policy is available on the website of the Company and can
be accessed at https://vimta.com/wD-content/uploads/
Policy-on-Related-Party-Transactions.pdf .

29    CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy, technology
absorption and foreign exchange earnings and outgo as
required under Section 134(3)(m) of the Companies Act,
2013 read with Rule 8 of the Companies (Accounts) Rules,
2014, is enclosed as Annexure IX to this report.

30    RISK MANAGEMENT POLICY

The Risk Management Committee, constituted by the
Board of Directors during the previous financial year,
continues to oversee the implementation and effectiveness
of the Company's Risk Management Policy and Enterprise
Risk Management Framework, including the identification,
assessment, monitoring, and mitigation of key risks. The
Company also maintains a comprehensive Risk Register to
systematically monitor, evaluate, and manage identified
risks across the organisation. The Committee ensures
effective implementation of risk management practices
throughout the Company.

During the financial year under review, two (2) meetings
of the Risk Management Committee were held. The details
of the meetings are provided in the Corporate Governance
Report. The Board of Directors continues to review and
support the Company's risk management framework to
ensure that significant risks are periodically identified,
assessed, and appropriately mitigated. Further, details of
key risks and the management's perception thereof are
provided in the Management Discussion and Analysis
section (refer point no.2) of this Report and also in the
Business Responsibility and Sustainability Report (BRSR).

31    ANNUAL EVALUATION OF BOARD PERFORMANCE AND
PERFORMANCE OF ITS COMMITTEES AND OF DIRECTORS

Pursuant to the provisions of the Companies Act, 2013 and
Regulation 25 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Board has carried
out the annual performance evaluation of its own, that of
its committees and individual directors.

A structured evaluation is performed covering various
aspects of the Board's functioning such as adequacy of
the composition of the Board and its Committees, Board
culture, execution and performance of specific duties,
obligations and governance aspects.

The performance evaluation of the Independent Directors
was carried out by the entire Board. The performance
evaluation of the Chairman and the Non-Independent
Directors was carried out by the Independent Directors
who also reviewed the performance of the Secretarial
Department. All the evaluations had satisfactory outcomes.

32    CODE OF CONDUCT FOR BOARD OF DIRECTORS AND
SENIOR MANAGEMENT PERSONNEL

The Company has adopted a comprehensive Code of
Conduct ("Code") pursuant to Regulation 17(5) of the
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, applicable to all Directors and
Senior Management Personnel, including Independent
Directors, as may be applicable based on their roles and
responsibilities. The Code incorporates the duties of
Independent Directors as prescribed under the Companies
Act, 2013, and provides guidance for ethical conduct of
business and compliance with applicable laws. Further, the
Company has in place a policy on obligations of Directors
and Senior Management Personnel for disclosure of
committee positions and commercial transactions
pursuant to Regulation 26(2), (5) and (6) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015. All Directors and Senior Management Personnel
have affirmed compliance with the Code. A declaration to
this effect signed by the CEO forms part of this Report and
is annexed as Annexure X to the Corporate Governance
Report.

33    PREVENTION OF INSIDER TRADING

Pursuant to Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015, the
Company has adopted and complied to the Code of Internal
Procedures and Conduct for Regulating, monitoring and
reporting of trading by designated persons and their
immediate relatives along with Code of Fair Disclosures.

34    PREVENTION, PROHIBITION AND REDRESSAL OF SEXUAL
HARASSMENT AT WORKPLACE

The Company has complied with provisions relating to the
constitution of Internal Complaints Committee under the
Sexual Harassment of women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. The company formed
a committee to attend to the complaints and monitor
implementation of the above Act. During the financial year
ended 31^st March 2026, the company has not received any
complaints from employees regarding sexual harassment.
The number of complaints filed, disposed of, and pending
as of the financial year under review is zero (0).

35    VIGIL MECHANISM/ WHISTLE BLOWER POLICY

The Company has a Whistle Blower Policy in place, framed
to deal with instances of fraud and mismanagement, if
any in the Company. The Policy provides for adequate
safeguards against victimization of employees who avail
the mechanism and also provides for direct access to
the Chairman of the Audit Committee. The details of the
Policy are explained in the Corporate Governance Report
and also posted on the website of the Company, which can
be accessed at https://vimta.com/wp-content/uploads/
Whistle-Blower-Policv.pdt.

36    INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

A robust internal control mechanism is a prerequisite to
ensure that an organisation functions ethically, complies
with all legal and regulatory requirements and observes
the generally accepted principles of good governance.

Your Company has adequate internal control systems
for business processes, efficiency in its operations, and
compliance with all the applicable laws and regulations.
Regular internal checks and audits ensure that the
responsibilities are being effectively executed. In-depth
review of internal controls, accounting procedures and
policies of Company is conducted. Your Company has
adopted adequate internal controls and audit system
commensurate with its size and nature of business. Internal
financial control with reference to financial statement is
adhered.

Internal audit is carried on a quarterly basis. The Internal
Auditor reports directly to the Audit Committee of the
Board, which ensures process independence. The Audit

Committee reviews the adequacy and efficacy of the
internal controls, as well as the effectiveness of the risk
management process across the Company. After reviewing
the findings and suggestions, the Audit Committee directs
the respective departments through Board to implement
the same.

37    CASH FLOW STATEMENT

In compliance with the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, the
Companies Act, 2013, and the applicable Accounting
Standards, the Cash Flow Statement has been prepared
and forms part of the Financial Statement for the year
ended 31^st March 2026 included in this Annual Report.

38    ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH
REFERENCE TO THE FINANCIAL STATEMENTS

The Company has established adequate internal financial
controls with reference to the financial statements,
commensurate with the size, scale, and complexity of its
operations. These controls are designed to ensure the
orderly and efficient conduct of business, safeguarding
of assets, prevention and detection of frauds and errors,
accuracy and completeness of accounting records, and
timely preparation of reliable financial information. The
internal financial controls were operating effectively
during the financial year under review.

Based on the internal financial control framework and
compliance systems established and maintained by the
Company, the audit and review processes carried out by
the Internal Auditors, Statutory Auditors, and Secretarial
Auditors, along with the periodic reviews undertaken by
the Management and the relevant Board Committees,
including the Audit Committee, the Board of Directors is of
the opinion that the Company's internal financial controls
with reference to the financial statements were adequate
and effective as at 31^st March 2026.

Pursuant to the Circular dated 07^th January 2026 issued
by the National Financial Reporting Authority (NFRA) on
"Effective Communication Between Statutory Auditors
and Those Charged With Governance (TCWG), including
Audit Committees", the Company has constituted a Those
Charged With Governance (TCWG) Committee to oversee
the implementation of the requirements prescribed under
the said circular.

In line with the recommendations of the aforesaid circular,
the Company has also adopted an appropriate framework
to facilitate structured and effective communication
between the Statutory Auditors and the TCWG, including
documentation, monitoring, and governance mechanisms,
thereby strengthening the overall corporate governance
and audit oversight processes

39    PROCEEDINGS UNDER THE INSOLVENCY & BANKRUPTCY
CODE, 2016 (31 OF 2016)

During the financial year under review, the company has
neither made any application under the Insolvency and
Bankruptcy Code, 2016, nor any proceeding is pending
under the said code.

40    BORROWINGS

During the financial year under review, the company has
not approached its Bankers/Financial Institutions for one
time settlement in respect of its borrowings. Accordingly,
no valuation was done during the year under review.

41    TRANSFER OF SHAREHOLDING FROM ANDHRA PRADESH
INDUSTRIAL DEVELOPMENT CORPORATION LIMITED
TO TELANGANA STATE INDUSTRIAL DEVELOPMENT
CORPORATION LIMITED

During the financial year under review, the shareholding
held by Andhra Pradesh Industrial Development
Corporation Limited ("APIDC") was transferred to
Telangana State Industrial Development Corporation
Limited ("TSIDC") with effect from 18^th November 2025.
The said transfer is pursuant to the bifurcation of the
erstwhile State of Andhra Pradesh and the demerger
scheme of APIDC in accordance with the provisions of the
Andhra Pradesh Reorganisation Act, 2014.

In accordance with Regulation 31A of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, APIDC was classified as a Promoter pursuant to
the Investment Agreement dated 27^th June 1991. In
view of the transfer of shareholding and in accordance
with Regulation 31A of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, TSIDC has
been classified as 'Promoter - Body Corporate' and APIDC
has been reclassified under the 'Public' category, pursuant
to the provisions of the Andhra Pradesh Reorganisation
Act, 2014 enacted by the Parliament of India.

The matter relating to the Investment Agreement dated
27^th June 1991 remains sub judice before the appropriate
judicial authority.

42    MATERIAL CHANGES

No material changes have occurred subsequent to the end
of the financial year of the Company to which the financial
statements relate and till the date of the report, that have
an impact on the financial position of the Company.

43    PARTICULARS OF SIGNIFICANT/MATERIAL ORDERS
PASSED, IF ANY

During the financial year under review, there were no
significant and material orders passed by any Regulator or
Court or Tribunals which would impact the going concern
status of the Company's operations in future.

44    BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

Your Company is committed to conducting its business
in a responsible and sustainable manner by integrating
environmental, social, and governance (ESG) principles

into its operations and service delivery. As a leading testing,
inspection, and certification Company, your Company plays
a vital role in supporting quality, safety, and regulatory
compliance across industries, thereby contributing to
environmental protection and public health.

Your Company continues to strengthen its sustainability
practices across its operations with a focus on efficient
resource utilization, responsible waste management,
energy conservation, and compliance with applicable
environmental laws and regulations. Your Company also
places strong emphasis on ethical business conduct,
employee well-being, diversity and inclusion, and proactive
stakeholder engagement as part of its ESG framework.

Through its services, your Company enables its clients to
meet regulatory standards and sustainability objectives,
thereby creating a positive impact across the value chain
and the communities it serves.

In pursuance of Regulation 34 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, the Business Responsibility and Sustainability
Report (BRSR), describing the initiatives taken by your
Company from an environmental, social and governance
perspective, forms part of this Annual Report. Kindly refer
to Annexure B for detailed disclosures.

45    GREEN INITIATIVE IN CORPORATE GOVERNANCE

The Ministry of Corporate Affairs (MCA), as part of its
green initiative in corporate governance, has permitted
companies to undertake paperless compliances and to
serve Annual Reports and other documents to shareholders
through electronic mode, subject to compliance with
the prescribed conditions. Members who have not yet
registered their email addresses are requested to register
the same with their respective Depository Participants,
in case the shares are held in electronic form, and with
the Company's Registrar and Share Transfer Agent, CIL
Securities Limited, in case the shares are held in physical
form.

46    ACKNOWLEDGEMENTS

The Directors place on record their deep appreciation for
the valuable contributions made by employees at all levels
for their sincerity, hard work, solidarity, and dedicated
support to the Company during the financial year under
review. The Directors also express their gratitude to the
shareholders, customers, vendors, consultants, bankers,
and all other stakeholders for their continued trust and
support extended to the Company.

For and on behalf of the Board,

Date: 06^th May 2026    Dr. Sivalinga Prasad Vasireddi

Place: Hyderabad    Executive Chairman

(DIN:00242288)