The Directors have pleasure in presenting the 74^th Annual Report
together with the Audited Financial Statements for the Financial
Year ended March 31,2026.

FINANCIAL RESULTSThe following are the standalone financial highlights for the

Financial Year 2025-26:

[MINR]

Total revenue from operations grew by 10.8 % over the previous
year. Profit before tax (w/o exceptional items) was 15.4 % of total
revenue from operations for 2025-26 (Previous Year: 15.1 %).

ACQUISITION OF EQUITY SHARES OF BOSCH CHASSIS
SYSTEMS INDIA PRIVATE LIMITED (RBIC)

The mobility sector is rapidly changing worldwide due to
acceleration in electrification, introduction of autonomous cars,
and regulatory changes towards safer vehicles. To secure long-term
success, Bosch Limited is also adapting quickly to the changing
circumstances and developing highly flexible, business-oriented
solutions aligned to regional needs within a very short time.

Bosch Limited expects the mobility landscape to evolve rapidly by
2030 & beyond with sustainable, safe & exciting technologies. This
will involve cross-domain synergies, cross-functional thinking, and
cross-entity working mindset. There is a growing need to integrate
businesses and product portfolios together to deliver platform level
solutions to our customers across the various mobility domains.
Currently, diverse businesses are housed under different entities
of Bosch Group in India. While the Power Solutions business is
in Bosch Limited, the Safety & Braking portfolio including active
& passive safety and actuation is under a different Bosch group
company, Bosch Chassis Systems India Private Limited (RBIC),
located in Pune.

As the above-mentioned portfolios are complimentary to each
other, a combined approach would offer synergies in delivering
greater value to the customer. To achieve this objective, the
Company believes the acquisition of the safety and braking
systems of RBIC would enhance the value of Bosch Limited.

The Board of Directors of Bosch Limited has approved the
acquisition of RBIC by way of acquiring 100 % equity capital of RBIC
from its existing shareholders. The Company has also obtained the
approval of its shareholders via a Postal Ballot for the proposed
acquisition. The purchase consideration of this acquisition is
an amount not exceeding ' 9,068.68 Crores (as valued by an
independent valuer), will be financed through internal accruals.
The Company believes that utilization of cash for the acquisition
will be an efficient use of the Balance Sheet, particularly when
RBIC offers strong and sustainable growth with high profitability.
The transaction is expected to be completed by the end of Q1 2026¬
27 after obtaining necessary regulatory approvals. Post which RBIC
will become a 100 % subsidiary of Bosch Limited.

DIVIDEND AND TRANSFER TO RESERVES

Based on the good financial performance for the year under
review coupled with strong balance sheet strength with no debt
and sufficient cash reserves (even after the acquisition of RBIC)
and considering future cash flows, the Board of Directors have
recommended a final dividend of ' 270/- per equity share for the
financial year 2025-26 for the approval of the members at the 74^th
Annual General Meeting of the Company. The total dividend payout
ratio comes to 29% for 2025-26.

The final dividend recommended is in accordance with the
Dividend Distribution Policy of the Company. The Company does
not propose to transfer any amount to Reserves for the year under
review.

Pursuant to the requirements of regulation 43A of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015,
the Company has adopted a Dividend Distribution Policy and is
enclosed as Annexure 'H' to this Report.

Details of outstanding and unclaimed dividends previously
declared and paid by your Company are given under the Corporate
Governance Report which forms part of this Integrated Annual
Report.

MANAGEMENT DISCUSSION AND ANALYSIS
Economic Scenario
Global economy:

Global economy in 2025 was characterized by resilient growth,
ending up at 3.4 % with uneven performance across United States
(2.1 %) & Europe (1.4 %) & emerging and developing economies
namely China (5.0 %) & India (7.6 %) leading the growth. While
inflation declined in many nations, high geopolitical tensions, trade
protectionism, and tariffs and elevated interest rates marked the
year. Average global inflation for 2025 was 4.1 %. Global trade with
the US witnessed some front-loading of imports in H1 of 2025 with
uneven tariffs for different countries, affecting trade in the later
months. Since then, the tariffs have been rolled back due to US
Supreme Court rulings.

In 2026, the global economy faces renewed stress as the conflict in
the Middle East threatens growth and inflation, following resilience
in previous year. Assuming limited impact of middle east conflict,
in scope and duration, global growth is projected to moderate to
3.1 % in 2026 and 3.2 % in 2027. U.S. is expected to grow by 2.3 %,
Europe by 1.1 %, and key developing economies, namely China &
India are expected to grow by 4.4 % and 6.5 % respectively. Global
headline inflation is projected to rise moderately to 4.4 % in 2026.

Foreign exchange volatility is expected to persist, especially in
emerging markets which are sensitive to capital inflows and high
oil imports. However, global activity could improve if productivity
gains from AI materialize more rapidly & geopolitical and trade
tensions ease on a sustained basis.

Indian Economy:

India remained the bright spot clocking high growth (7.6 % GDP)
in 2025-26, supported by strong domestic consumption with tax
& fiscal supports by government. Foreign Direct Investments (FDI)
and Foreign Portfolio Investments (FPI) were weak in the entire
financial year compared to previous years and has led to wider
trade deficits and weaker Rupee.

GDP for 2026-27 is expected to grow by 6.5 % (less than previous
year), affected by headwinds from geo-political impact, higher
inflation (base effect & elevated commodity prices) and weak
monsoon forecast. On the fiscal side, last year's GST and income
tax support aided growth. However, geopolitical risks and inflation
pressures could moderate consumption momentum in 2026-27.
Manufacturing growth outlook is closely tied to global demand,
with exports exposed to trade dynamics and external slowdown
risks.

Depreciation pressure in INR continues, driven by persistent
capital outflows, higher oil prices, and global uncertainty.

Source: IMF World Economic Outlook Report - April 2026
Industry Structure and Development
(A) Automotive

Indian Automotive Industry 2025-26: Robust growth
supported by GST 2.0 tailwinds

2025-26 was a year of contrasting halves. Apr-Aug remained
muted amid consumer caution and geopolitical tensions;
Sep-Mar saw a decisive upshift as GST 2.0 improved
affordability, lifted sentiment, and triggered broad-based
sales momentum. The recovery was driven by GST rate cuts,
a favorable monsoon boosting rural demand, and supportive
macroeconomic measures including repo rate reductions and
income tax relief, which improved affordability and boosted
consumer confidence. As a result, overall, 4-Wheeler vehicle
production rose 12.2 % Y-on-Y, with the industry overcoming
early volatility to exit the fiscal on a strong footing compared
to 2024-25.

In 2025-26, the electric vehicle (EV) market expanded
across all segments, signaling a broad-based shift toward
electrification. Electrification in Passenger Cars also gained
strong momentum in the segment, aided by expanding
charging infrastructure and a broader portfolio of feature-
rich models across price points. Electric 2-wheelers recorded
healthy growth, reflecting a more sustainable, demand-led
transition compared to earlier subsidy-driven spikes, while
3-wheelers gained momentum on the back of rising last-mile
delivery demand. Electric buses also saw steady growth,
supported by government initiatives such as PM e-Bus
Sewa. Overall, the expansion of charging infrastructure and
continued policy support accelerated EV adoption.

Vehicle segment wise performance in 2025-26
Passenger Car (PC): Consistent UV demand and GST
impact drove growth

Passenger vehicle production reached an all-time high of
5.6 million units in 2025-26 with a growth of 10.2 % Y-o-Y,

marking a shift from steady to robust growth, driven by
strong consumer demand and supportive macroeconomic
conditions.

While sentiment was impacted in the first half due to
geopolitical tensions, particularly tariff-related uncertainties,
demand rebounded sharply post-September 2025,
supported by GST benefits, sustained SUV traction, and
improved consumer confidence.

Electrification also gained strong momentum in the
segment, aided by expanding charging infrastructure and a
broader portfolio of feature-rich models across price points.
Additionally, inventory levels normalized to ~28 days (from
~52 days in March 2025), indicating one of the healthiest
channel positions in recent years.

Commercial Vehicle (CV): Strong growth driven by
sustained infrastructure investment and e-commerce
demand

The Heavy Commercial Vehicle (HCV) segment delivered
strong 15.8 % Y-on-Y growth, returning to its 2018-19 peak,
supported by sustained infrastructure-led demand and
robust freight activity. Higher infrastructure spending (~10 %
increase) further strengthened demand, while GST rate cuts
boosted freight movement and drove replacement cycles.
The bus segment recorded double-digit growth, led by
accelerating EV adoption, backed by state-led electrification
initiatives, rising urban mobility needs, and an increased
focus on sustainability.

Light Commercial Vehicle (LCV) production grew 10.5 %
Y-on-Y, surpassing its 2023-24 peak, driven by sustained
infrastructure spending and festive-led demand supporting
freight and last-mile connectivity. Additionally, GST-led
benefits and repo rate cuts improved affordability, unlocking
both deferred and replacement demand.

Tractors: Good & timely monsoon led to robust
agricultural output fueling the demand

The tractor segment emerged as a standout performer
in 2025-26, registering robust 21.8 % Y-on-Y growth and
surpassing its previous peak seen in 2022-23. Favorable
monsoon conditions played a pivotal role, supporting strong
Kharif output and improving Rabi crop prospects, which
significantly boosted farm incomes and sentiment.

Healthy reservoir levels further enhanced irrigation
availability, aiding overall farm productivity. In addition,
higher Minimum Support Prices (MSPs), improved rural
liquidity, and supportive policy measures such as GST
benefits strengthened purchasing power in rural markets.
This, coupled with increased mechanization across regions,
drove strong volume growth.

2-Wheeler (2W): Improved affordability & rural cashflow
coupled with steady urban demand led growth

The 2-wheeler segment recorded a robust 11.2 % Y-on-Y
growth in 2025-26, surpassing its 2018-19 peak. Growth
was supported by improved rural cash flows, steady urban
demand, and a widening product portfolio across both entry-
level and premium segments.

Shift towards higher end 2-wheelers, rising participation of
women riders, higher fleet and last-mile mobility demand

further contributed to volume expansion. GST rationalization and income tax relief continued to enhance affordability and support
disposable incomes.

Electric 2-wheelers gained further traction, with adoption becoming increasingly demand-driven. Additionally, strong festive and
wedding-season demand, particularly in H2 2025-26, provided an added boost, enabling the segment to close the year on a strong note.

3-Wheelers: GST boost and e-commerce growth drove segment momentum

The 3-wheeler segment recorded strong 24.2 % Y-on-Y growth in 2025-26, surpassing its 2018-19 peak, driven by robust demand for
passenger mobility and expanding last-mile connectivity.

Growth was further supported by steady adoption of electric 3-wheelers, aided by lower operating costs. The segment's evolution
reflects a broader structural shift toward clean mobility and cost-efficient last-mile delivery, with e-3Wheelers steadily gaining share
from CNG.

Trend of Vehicle Production in the Indian automotive market for the past 5 financial years

Indian Automotive Industry outlook for 2026-27:

The Indian automotive market outlook for 2026-27 remains
in the growth trajectory, with the expectation of a high
single-digit growth supported by strong macroeconomic
fundamentals and tailwinds from GST rationalization.
However, the sector remains at a crossroads, as escalating
geopolitical tensions could drive cost pressures and
disruptions across the automotive value chain.

(B) Non-AutomotiveConsumer goods - Power Tools

India's resilient & rapidly growing economy, continued
infrastructure development, and sustained manufacturing
growth are key macroeconomic drivers supporting the power
tools market in 2025-26. Government led infrastructure
spending remained structurally high during 2025-26, with
capital expenditure maintained at ~'11.2 Lakhs Crores under
Union Budget 2025-26, reinforcing demand across roads,
railways, urban infrastructure, logistics, and housing. India's
manufacturing sector showed strong momentum during
2025-26, supported by policy continuity under Make in India
and the formal launch of the National Manufacturing Mission
(2025-26).

The Indian power tools market is estimated at approximately
'120 billion in 2025-26 and is expected to grow at a CAGR
of around ~7 % over the next 3 years, driven by sustained
infrastructure investments, manufacturing growth across
industries, and rising adoption of cordless power tools. Over

the medium-to-long term, this growth trajectory reflects
steady expansion across construction, manufacturing,
MSMEs, professional, and consumer segments.

The market continues to witness intensified competition,
particularly from Chinese / new entrants who are gaining
traction in the lower to mid-price segment and challenging
established professional players. However, during the year,
the regulatory environment continued to tighten imports,
with increased focus on BIS certification, quality compliance,
and license renewals. These measures are gradually curbing
the inflow of sub-standard products and supporting a shift
towards compliant, branded offerings. This development
is structurally favorable for organized players like Bosch
Limited, who are investing in quality, safety, and localized
manufacturing, while also contributing to improved long-term
industry sustainability. Total revenue of Power tools segment
of Bosch Limited grew by a modest 6.4 % in 2025-26 vs PY. The
outlook for 2026-27 remains positive; however, a prolonged
middle east conflict could act as a dampener.

Building Technologies - Fire safety

The Fire Safety segment in India is expected to witness steady
growth, supported by ongoing infrastructure development, a
strong construction pipeline, stricter regulatory enforcement,
and increasing awareness of fire safety standards. However,
the market remains highly competitive, and price sensitive,
characterized by a fragmented landscape of international
and domestic players. The current market size is estimated at
approximately '1,200 Crores.

Bosch Building Technologies offers a comprehensive
fire safety portfolio designed to meet varied building
requirements. Backed by a wide range of intelligent,
dependable solutions, the Company is well placed to serve
rising demand across sectors. Its solutions combine high
reliability with future-ready scalability, delivering early and
accurate fire detection through advanced AI-enabled smart
sensors.

During the year, as a part of global restructuring, the “Video
solutions, Access & Intrusion and Communication systems”
business of Building Technology division was hived off in
May 2025. The division would now focus on “Fire Safety”
business. The outlook for 2026-27 remains promising, and
sales revenue is expected to post a strong growth.

Business segment wise performance

The Company operates in the manufacturing and trading business
in the Mobility sector, which constitutes around 89.4 % of total
sales in 2025-26. Business Beyond Mobility, comprising Consumer
Goods (Power Tools), Energy & Building Technology (Fire safety),
and Industrial Technology, had a share of 10.6 %.

The operating segments of the Company are broadly classified
into “Mobility Business” (Automotive products) and “Businesses
Beyond Mobility” (Non-Automotive products).

(A) Mobility Business:

Power Solutions (PS)

Power Solutions division is a global leader of components
and systems for internal combustion engines and develops
high-performance thermal management systems that
increase efficiency of motor vehicles. Fuel cell systems
and system solutions for hydrogen engines enable climate-
neutral propulsion. To produce low-carbon hydrogen, PS
is developing a powerful electrolysis stack. A significant
strength of the division's high system competence is
comprehensive expertise in software, controls and services.
The Power Solutions division recorded a growth of 17.6
% during 2025-26, supported by strong growth of the
automotive industry, driven by GST lead tailwinds and
demand across all automotive vehicle segments. In line
with Bosch's Mobility transformation, the integration of
Thermal Systems and Commercial Vehicle/Off-Road (CV/
OR) business further strengthens the division's systems
capabilities and contributes positively to future growth. The
CV/OR business continues to align its strategy with evolving
legislative requirements in the commercial vehicle segment
while focusing on expanding into emerging mobility solutions.
During the year, the division also marked an important
milestone in hydrogen mobility. Bosch India showcased its
hydrogen engine prototype truck to the Honorable Federal
Chancellor of Germany, Mr. Friedrich Merz, during his visit
to the Company's Adugodi campus in Bengaluru. The live
demonstration highlighted Bosch's local development
capabilities and reflected the joint commitment of Bosch
in India and Bosch, Germany to accelerate hydrogen
transformation toward sustainable mobility.

Aligned with Bosch's sustainability commitments, the
division continued to accelerate the transition toward
improved internal combustion engine technologies, near zero

emission technology with hydrogen engine and electrification
initiatives. Looking ahead, the division expects the growth
momentum to continue, supported by strong economic
fundamentals and anticipated growth in the automotive
industry and the upcoming implementation of commercial
vehicle ADAS regulations, and the acquisition of key OEM
businesses, positioning PS for sustained growth in the
coming years.

Mobility Aftermarket (MA)

The Mobility Aftermarket division has presence in Sales,
Supply, and Distribution of automotive parts for vehicle
servicing, diagnostics equipment for workshops and technical
information, training, and consulting for after-sales service
for Bosch automotive products and systems. The product
portfolio ranges from Diesel & Gasoline Fuel Injection System
& Components, Spark Plugs, Filters to Batteries, Lubricants,
Wiper Blades, and Diagnostic Equipment & Software, among
others.

The MA segment has over 50,000 retail touch points, spread
across 650+ districts across India, catering to over 15,000-
part numbers to ensure widespread availability of both
products and after sales services. The division also has over
1,500 authorized workshops & service centers comprising
of Bosch Car Service & Bosch Diesel Service Centers, Auto
Electrical Modules & 2-Wheeler Service partners, in India.

MA achieved the highest ever Revenue from operations in
2025-26 with a growth of +3.7 % compared to PY.

The Independent After Market (IAM) segment, consisting of
around 60.5 % of the total business of MA division, grew by
+3.2 % in 2025-26 vs PY.

The Original Equipment (OE) block led the growth in 2025-26
with an impressive 14.0 % increase over PY.

IAM continued its Zing+NXT strategy with a focus on
enhanced Demand Generation for deeper Market Penetration
& enhanced product portfolio for wider range participation.
Core product categories, including Filters, Diesel systems,
Braking systems, Wipers, Auto Electricals and Gasoline
products, performed particularly well, each delivering strong
growth compared to the previous year, supported by strong
aftermarket demand and effective execution initiatives.

MA India launched DAP (Diagnostics Amplifier Project)
last year which empowered every garage with cutting-edge
Bosch Diagnostics and eventually increase parts availability.
Likewise, 2-Wheeler workshops doubled in number
compared to last year.

MA plans to sustain and improve its growth in the coming year
with a focus on core products & new product launches.

2-Wheeler & Power sports (2WP)

Bosch has solidified its position as a key partner to major
two-wheeler original equipment manufacturers (OEMs)
by providing a suite of innovative technologies and
comprehensive system solutions tailored for a variety of
vehicle types. Our specialized Engine Management System
(EMS) portfolio is engineered specifically for the two-wheeler
segment and includes critical components such as lambda
sensors, fuel injectors, fuel supply modules, and advanced
Electronic Control Units (ECUs).

The 2025-26 marked a period of outstanding achievement for
our two-wheeler business in India which recorded remarkable
growth of 69.1 % compared to previous year. A significant
highlight was the successful large-scale implementation
of our exhaust gas sensors for OBDII norms, which was
instrumental in achieving substantial top-line growth and
setting new performance benchmarks.

New legislative frameworks introduced in 2025,
combined with emerging market opportunities such as
tax incentives, GST reductions, and technology trends
toward premiumization and value-added functions,
created a favorable environment for growth. The past year
was also pivotal in advancing our sustainability goals. We
developed and scaled critical technologies that enabled the
2-Wheeler industry to seamlessly adopt stricter emission
norms, contributing to a cleaner and more environmentally
responsible future for mobility.

(B)Business Beyond mobility:

The Business Beyond Mobility sales have decreased by
(13.6)% in 2025-26 vs PY mainly due to sale of “Video
solutions, Access and Intrusions and Communication
systems” business under Building Technology division, in
May 2025.

Consumer Goods - Power Tools (PT)

Bosch Power Tools has been a leading global supplier
of power tools, and related accessories, garden tools,
measuring technology & has recently expanded its portfolio
to hand tools. The division has a wide range of products
with a focus on equipping professionals and industry users
with cutting-edge tools that ensure precision, efficiency, and
durability.

During 2025-26, the division's revenue grew by +6.4 % vs PY,
of which the global tools segment which includes grinders
and cutters, constituting 54.8 % of the total power tools
business, grew by +6.0 % over PY. The accessories business,
which constitutes 28.8 % of the total power tools business,
grew by +3.6% over PY. The division also aims at reducing the
distance to its users and will continue to focus on improving
their lives by providing affordable solutions. The Power
tools division continues to focus on increasing the share of
localization of high-volume products and thereby offering
better value to customers.

The power tools business is expected to continue to grow
in the coming years. Focus will be on the Cordless Tools
business, Industrial Tools, Dealer engagement & New
launches across all business units. Lower price products will
continue to be essential for business growth with emphasis
on localization. The division is also expanding its business in
adjacent segments, namely hand tools.

Building Technology (BT)

Bosch's Building Technology division provides solutions
that create safe environments through advanced fire safety
systems. Our goal is to reduce risks, enhance protection,
and deliver the most suitable solution for every type of
building. BT offers cutting-edge technologies across a wide
range of sectors, including Metro and Railway Terminals,
Airports, Industrial Facilities, Government and Defense

Establishments, Hospitality, Education, Healthcare, Retail,
and Corporate Offices.

Across India, BT serves customers through a strong and
reliable network of System Integrators and Distributors,
ensuring seamless delivery, implementation, and support.

BT previously operated across Video Solutions, Access &
Intrusions, Communication Systems, and Fire Safety Systems
until April 2025. In alignment with its global strategy, the
Company hived off its Video Solutions, Access & Intrusions,
and Communication Systems businesses effective May 2025.
Following this restructuring, BT continues to operate only in
the Fire Safety Systems segment.

Revenue by geographical area

Bulk of the Net Sales in 2025-26 is from sales made within
India in the domestic market. Exports at 14,916 MINR
constitute ~7.8 % of total sales in 2025-26. Most of the
exports are manufactured goods to other Bosch group
companies from Power solutions and Mobility aftermarket
divisions. Close to 75 % of the total products exported are to
Robert Bosch, Germany.

Financial Performance
(A) Profit & Loss statement:

(i)    Sale of products

Sales of products grew by +12.7 % over PY and stood at
190,853 MINR in 2025-26.

Mobility business revenues increased by +16.9 % vs PY,
which comprises of Power Solutions, which grew by
+17.6 % vs PY aided by growth in the overall automotive
market, 2-Wheeler business grew by +69.1 % mainly on
account of sale of exhaust gas sensors due to ramp up
for OBDII norms implementation from April 01,2025.
Sales of Business Beyond Mobility decreased by (13.6)
% vs PY mainly due to sale of “Video solutions, Access
and Intrusions and Communication systems” business
in May 2025.

(ii)    Sale of services

Income from sale of services comprises of engineering
& application projects done mainly for Indian OEMs.

(iii)    Other operating revenue

Other operating revenue for 2025-26 stood at 4,400
MINR, which increased by +8.5 % over PY. This increase
is mainly due to higher government grants received in
2025-26.

(iv)    Other income

Other income comprises mark-to-market gains on
mutual fund investments and interest income on fixed
deposits and loans given, which increased by +4.9 %
over PY.

(v)    Cost of raw material & components consumed
(incl. trade goods)

Cost of goods sold (incl. trade goods) as a % of Sale
of products improved from 67.7 % in 2024-25 to 67.1 %
in 2025-26. The improvement is mainly on account of
material cost reduction and favorable product mix.

(vi)    Employee benefit expense

Personnel costs in 2025-26 were 15,458 MINR, which
is 7.7 % of total revenue as against 8.3 % of revenue
in PY. The reduction was mainly driven by employee
productivity improvement.

(vii)    Finance costs

Finance costs for 2025-26 were 267 MINR as compared
to 171 MINR in 2024-25.

(viii)    Depreciation and amortization expense

Depreciation charge for 2025-26 was 3,920 MINR
as against 3,756 MINR in PY. The increase is due to
investments made during the year in plant & machinery
for new products & upgradation/capacity increase for
existing products.

(ix)    Other expenses

Other expenses mainly comprise spending on plant
operating expenses, selling & administrative overheads,
& royalty payments. Other expenses were 15.2 % of
total revenue in 2025-26 as compared to 15.6 % of total
revenue in PY. The decrease is due to budgetary control
of expenses and better fixed cost absorption.

(x)    Exceptional item

Exceptional item in 2025-26 comprises of profit on
sale of Video Solutions, Access & Intrusions, and
Communication Systems businesses in May 2025.
Exceptional item in 2024-25 comprises of profit on sale
of OE diagnostics business offset by provision made for
restructuring of operations in mobility business.

(xi)    Total tax expense

Total tax expense for 2025-26 (including tax on
exceptional items) amounts to 8,717 MINR, as
compared to 7,193 MINR in PY. The effective tax rate
(including deferred tax, but excluding tax adjustments
related to earlier years), for 2025-26, is 23.3 % of Profit
Before Tax as compared to 25.6 % in PY. The effective
tax rate has decreased due to long term capital gain on
sale of business, which is taxed at lower rates.

(xii)    Profit for the year, viz. Profit After Tax (PAT)

Profit after tax (including exceptional items) increased
by +37.6 % over PY. Current year profit after tax has
one-time profit on sale of “Video Solutions, Access &
Intrusions, and Communication Systems business”
amounting to 5,560 MINR.

(xiii)    Other Comprehensive Income (OCI)

The investment in equity shares is classified as financial
assets through other comprehensive income as per the
requirements of Ind AS 109. The changes in fair value of
equity shares are recognized under the OCI. Also, the
gains/(losses) arising on remeasurement of employee
deferred benefit plans is recognized through OCI.
Because of a drop in market value of equity shares as
of March 31,2026, a net reduction in OCI of 2,312 MINR
(net of taxes) has been recognized in 2025-26.

(xiv) Earnings per Share (EPS)

EPS (basic and diluted) of the Company for 2025-26
stands at 939 INR per share as compared to 683 INR
per share in PY. Current Year had one time profit on
sale of “Video Solutions, Access & Intrusions, and
Communication Systems business.”

(B) Balance Sheet:

(i)    Share capital

As on March 31, 2026, the Authorized Share Capital
comprises 38,051,460 Equity Shares of ' 10/- each. The
issued, subscribed, and paid-up capital is 295 MINR
divided into 29,493,640 equity shares of ' 10/- each.

(ii)    Reserves & Surplus

Reserves & Surplus as on March 31, 2026, stood at
137,311 MINR, as compared to 124,459 MINR in PY. The
increase is on account of profit after tax earned during
2025-26, after payment of final dividend for 2024-25.

(iii)    Other Reserves

Other Reserves comprise fair value of equity
investments valued in line with Ind AS-109. The balance
of other reserves as of March 31, 2026, is at 10,861
MINR.

(iv)    Total Equity

The total Shareholders' funds increased to 148,467
MINR as on March 31, 2026, from 138,177 MINR as on
March 31, 2025, contributed by increase in retained
earnings for the year.

(v)    Property, Plant and Equipment (viz. Fixed assets)

Gross Block of fixed assets (including Capital Work-
In-Progress) as on March 31, 2026, was 46,588 MINR
compared to 44,347 MINR as on March 31,2025.

The Company added fixed assets worth 4,101 MINR
during the year 2025-26, mainly in plant & machinery
for new products, upgradation/capacity expansion &
replacements of old machines.

(vi)    Financial Investments

The total financial investments (Current & Non-Current)
as on March 31, 2026, was 79,813 MINR as against
71,246 MINR as on March 31, 2025. The net operating
profit earned during the year after meeting capex and
working capital requirements is invested in liquid
mutual funds.

Working capital:

(i)    Inventories

Inventories as on March 31, 2026, were at 21,242 MINR as
compared to 19,423 MINR as on March 31, 2025. Better
inventory management & inventory control measures have
improved the average inventory coverage days from 39 days
in PY to 37 days in 2025-26.

(ii)    Trade receivables

Trade receivables on March 31,2026, stood at 27,727 MINR as
against 23,650 MINR as on March 31,2025. The increase is in
line with increased revenue in 2025-26.

(iii)    Trade Payables

Trade payables on March 31, 2026, stood at 34,345 MINR as
against 29,553 MINR as on March 31, 2025. Coverage days
improved from 56 in 2024-25 to 58 days in 2025-26.

(iv)    Cash and Bank balances

The total cash and bank balances as on March 31, 2026, was
4,025 MINR (including cash and cash equivalent of 3,963
MINR), compared to 5,077 MINR (including cash and cash
equivalent of 3,528 MINR) as on March 31,2025.

Key Ratios:

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL
RELATIONS

Bosch Limited in India is operating in a phase of significant business
transformation. While there are global headwinds, Bosch India
remains on a strong growth trajectory, with ambitions to achieve
multifold growth over the coming years. The organization continues
to benefit from its strong legacy in automotive, engineering, and
manufacturing, complemented by a deep and trusted customer
connect. To sustain and accelerate this growth ambition, Bosch
India must adapt rapidly to a changing external environment.
Market expectations are shifting towards affordable quality and
faster innovation. Growth in electric vehicles, software-defined
mobility, connected systems, and smart manufacturing is
fundamentally reshaping the business landscape. To enable
this transition at Bosch India, we are driving a delicate balance
between sustaining the current core business capabilities at one
end while simultaneously investing in future-ready technologies
and capabilities to build the growth engine for future.

We at Bosch India is rethinking our workforce model. While
existing talent structures are strong in certain domains, we are
progressively building complementing capabilities in embedded
software, artificial intelligence, analytics, mechatronics, and digital
product development. At the same time, faster time-to-market
and increased localization are critical to positioning India as a
cost-effective innovation engine. Accordingly, the people strategy
now is prioritizing workforce transformation through reskilling,
upskilling, and sustained capability building. Through a focused

strategic workforce planning we are going beyond traditional
headcount management towards focus on role criticality,
demand forecasting, productivity optimization, and flexible
talent deployment. We are developing future ready skills through
structured capability academies, role-based learning journeys,
internal expert-led development, and measurable readiness for
future-critical roles.

a)    In addition, portfolio evolution, supply chain uncertainty, and
global volatility require Bosch India to strengthen internal
talent mobility, leadership resilience, and organizational
adaptability. Future leaders are further being equipped
to manage ambiguity, balance cost with innovation, drive
transformation, and build talent across functions and
businesses.

b)    Overall our HR organization is focused on enabling the
transformation through strategic workforce planning, talent
management, leadership and succession development,
internal career mobility, developing high-performance
culture, creating great employee experience and building
Bosch India as a Talent Magnet.

Strategic Workforce Planning

As Bosch India navigates the shift from traditional automotive
strengths toward electrification, hydrogen, hybrid vehicles, digital
mobility, smart manufacturing, cordless product expansion and
marketing excellence to drive business. Our workforce strategy is
now focused on building a talent pipeline to enable future business
needs. We have focused our efforts in buying scarce, fast-moving
digital and electrification capabilities, build core engineering
and leadership skills for scale and succession, and borrow
regulation-led or adjacent capabilities for flexibility from our global
network. Based on the analyses, largest increments are needed in
manufacturing, sales, and R&D. Hence, we have made proactive
plans to invest ahead of the curve by prioritizing critical capability
requirements for a future-ready workforce.

Succession Planning and Career Mobility

At Bosch, succession planning and career mobility are connected
levers to build a strong and future-ready talent pipeline. Our
succession planning approach is becoming more focused
and strategic, with clear attention on future-critical roles and
capabilities. By identifying key positions and assessing ready and
near-ready talent, we are building a stronger leadership pipeline
for the future. For senior roles, we are ensuring that multiple
successors are identified. Today we have close to 80 % successor
coverage across critical positions. In areas where specialized
capabilities are still emerging, we are also building an external
talent pipeline to complement internal readiness.

At Bosch Limited we have orchestrated a very enabling internal
market place where more than 180 talents have moved across roles
both within and across businesses. This in-turn created promising
career opportunities for associates and facilitated exposure at an
enterprise level beyond their respective functions.

Bosch launched Short-Term Exchange Program (STEP) which is
further supporting mobility by enabling associates to explore new
roles, teams, and business units through structured short-term
assignments and immersive learning experiences.

We currently have approximately 50 outbound and around 20
expatriates (XPATs) working with us through both short-term and
long-term international assignments. These opportunities enable

employees to gain valuable cross-cultural exposure, broaden their
global perspective, and enrich their professional development
across geographies.

To make career growth more visible and structured, Bosch has
also implemented a Job Architecture Program with clear job
descriptions and a consistent role framework aligned to business
needs. This has improved role clarity, strengthened workforce
planning, and created better visibility into career pathways. This is
implemented across businesses covering 84 % of total headcount.
Bosch is also leveraging AI by launching career lattice to make
career growth more personalized and future-focused, to match
employees' skills with potential emerging roles for development
opportunities. This is helping create a more transparent, agile,
and future-ready internal talent marketplace that supports growth,
reskilling, and retention.

Building High-Performance Culture

At Bosch, we recognize that incremental shifts will not be enough to
support our future ambitions. Bosch India is therefore consciously
evolving into a more dynamic and performance-oriented enterprise.
While process discipline remains one of our core strengths, it must
now be complemented by faster innovation, quicker decision¬
making, and greater speed in the market. In line with this shift,
our performance management approach is becoming sharper and
more continuous, with stronger emphasis on goal clarity, regular
feedback, capability building, and timely recognition.

A high-performance culture at Bosch is being anchored in stronger
accountability, recognition of strong performers, encouragement
of calculated risk-taking, and appropriate consequence
management for consistently suboptimal performance. We are
moving toward more meaningful performance differentiation
to reinforce meritocracy and ownership. To support this, we
have strengthened leadership calibration through the 9-box
methodology for performance and potential assessment, clarified
role-based expectations, and introduced clearer consequence
management practices to ensure differentiation is credible, fair,
and well accepted.

Bosch follows a structured rating framework for performance
differentiation. Employees in the lower performance band are
placed on focused improvement plans with tailored development
support and close performance monitoring. Those in the higher
performance band are recognized as future talent and are
supported through customized development journeys, including
strategic and global project exposure, along with differentiated
rewards aligned to their contribution and potential.

Bosch as a Talent Magnet

At Bosch talent acquisition and attraction now encompasses 4
strategic levers of business enablement. This includes future
proofing for leadership and niche roles through strategic hiring from
the lateral market, breaking gender narratives in manufacturing
thereby facilitating inclusive talent hiring, creating an ecosystem of
early careers to negate the twin challenge of dwindling non circuit
branches of engineering in academia and blurring lines in market
place where similar talent is targeted by manufacturing and also
divergent industries.

For entry level roles we have increased our early career absorption
of talent by almost 8 times over the last few years. In the last financial
year more than 25 % of external hires were women associates. Our
efforts in both acquiring and attracting talent has been recognized
through prestigious industry forums such as “People matters” and
Economic times”, “Gold in Employer Branding, Silver in Excellence
in Talent Acquisition" through multiple awards for excellence.

Leadership Capability Building and Learning Architecture

At Bosch, leadership development and learning are being
shaped as integrated enablers of business performance and
long-term organizational growth. The Leadership Enablement
and Development Framework is a focused intervention designed
to build a future-ready leadership bench by strengthening the
capabilities of leaders who play a critical role in driving business
performance and transformation. We are building future leaders
through self-assessments, one-on-one coaching, and customized
development programs. The are enabling the with qualities like
one-level-up thinking, customer centricity, radical collaboration
and bold decision-making with accountability.

This leadership agenda is closely linked to Bosch's broader
Learning & Competence strategy, which leverages strong in-house
expertise to continuously strengthen capabilities that support
and expand the core business. At Bosch Technical Centre India,
learning is viewed as an ongoing journey aligned with business
priorities and industry transformation. As mobility evolves through
electrification, connectivity, and digitalization, Bosch's learning
strategy is evolving in parallel to equip associates with the skills,
mindset, and adaptability needed to lead change.

A key enabler in this journey is the Bosch Learning Campus
(BLC), a state-of-the-art learning ecosystem that offers immersive
and future-ready learning experiences. Together, leadership
enablement and continuous learning form a critical pillar in building
a resilient, high-performing, and future-ready organization.

Overall, training delivery is as follows:

Valuable insights gathered from our associates have been
instrumental in shaping our approach. In response to associate
feedback, we have developed a customised TRS (Total Rewards
Statement) that articulates our comprehensive Employer
Value Proposition. This resource provides our associates with
transparent, on-demand access to information on a wide array of
topics, including individual compensation structures, best-in-class
benefits, work-life balance initiatives and extensive learning and
development programs. We encourage cross function movements
and have great programs which provide multiple development
opportunities through career related mobility for associates. We
also consciously strive towards living the culture of recognition in
Bosch and have programs directed towards increasing associate
participation and focussed team collaboration and appreciation
as a critical pillar for business success. Bosch has benchmarked
industry practices and implemented salary increments that are
higher than the market average, with the objective of retaining top
talent and ensuring competitive, market-aligned pay across the
organization.

Diversity, Equity, and Inclusion (DEI)

At Bosch, Diversity, Equity, and Inclusion (DEI) is embedded as a
strategic driver of sustainable growth, innovation, and employee
engagement rather than a standalone initiative. The approach is
grounded in four core principles: Diversity, Equity, Inclusion, and
Belonging. This is operationalized through four pillars: gender
diversity, generational diversity, international diversity, and
inclusion of people with diverse physical and mental abilities.
Together, these create equitable access to opportunities,
strengthen culture, and build a future-ready workforce.

A key enabler of DEI is Bosch's Career Progression Program for
women, offering structured development across career stages
from early-career clarity with the program “In it to win it” to
executive readiness with “Flying lessons” including a dedicated
program for women in shopfloor roles. These interventions

combine diagnostics, mentoring, leadership development, and
capability building to strengthen the leadership pipeline.

We have improved our gender diversity from 11 % to 14 %,
supported by inclusive hiring, focused retention, and targeted
career development.

Gender diversity is not limited to white collar associates. We are
proud to say that we have made significant progress in hiring
women associates at the shopfloor. Our Chennai power tools plant
operates with more than 80 % women associates at the shopfloor
and Gangaikondan plant with 70 % women at the shopfloor,
delivering world class products and performance metrics. Bosch
supports associates with a two-shift day care facility to help early
mothers continue their careers with confidence. We also conduct
home visits for shopfloor associates to offer care and emotional
support during both difficult and important life moments. In
the event of the loss of an immediate family member, financial
assistance of '15,000 is provided under the bereavement policy,
the amount is credited within 48 hours in the associates bank
account.

International Women's Day 2026 further advanced inclusion
through leadership advocacy, expert perspectives, employee-led
dialogue, and supportive policies. Bosch's efforts have been
externally recognized through prestigious awards “Economic
Times HR Capital Award in the category of Most Inspiring
Workplace for Women - Gold”, validating its disciplined execution
and commitment to an inclusive workplace.

b) Industrial Relations / Employee Relations:

Employee Relations: Advancing Workplace Relations

The strategic intent of Employee Relations (ER) is to establish a
resilient, compliant, and people-centric ecosystem that enables
organizational compliance, strengthens governance, and
ensures business continuity. This is achieved through four
key strategic interventions - Assessment, Engagement, Conflict
Resolution and Capability Building.

Preparedness for Labour Code Implementation

A comprehensive Labour Code Playbook
was developed and released in August
2025, ahead of the regulatory rollout
on November 21, 2025, to support a
planned and consistent transition. Given
the significance of the Labour Codes in
reshaping India’s regulatory framework,
the playbook serves as a practical
reference to guide implementation. It

outlines applicability, provides interpretative clarity, and defines
key requirements, enabling a consistent approach across Bosch
locations. To support adoption, structured discussions and
training sessions were conducted for key stakeholders, including
HR, business leaders, and operational teams. These interventions
were aimed at building awareness, strengthening understanding of
regulatory provisions, and enabling their application in day-to-day
operations. This approach has strengthened compliance readiness,
improved governance practices, and supported more consistent
decision-making. In parallel, Labour Code awareness sessions and
workshops were conducted under Bosch ER Academy to educate
the stakeholders for smooth implementation of the changes. These
efforts have supported a structured transition towards Labour
Code compliance, while positioning Employee Relations as an
important contributor to a stable and compliant work environment.

Bosch ER Academy

Bosch progressed its capability-building journey under
the Bosch ERA framework with the launch of a Web-Based
Training (WBT) Module - Essentials of Employee Relations

at the ER Conference held on March 26, 2026. The module
provides a structured understanding of the evolution of work

and employment relationships, covering key aspects such as
industrial relations fundamentals, employment frameworks, and
workforce representation, thereby enabling consistent learning
at scale.

Building on existing ERA modules covering grievance management,
disciplinary process, contract labour management, and conflict
resolution, additional focused training sessions on “Dealing with
Collectives (Unions)” and “Demystifying Labour Codes” were
introduced. These interventions were designed to strengthen
leadership capability in managing workforce dynamics and
navigating regulatory changes, with emphasis on practical
application through case-based discussions and role-based
learning. These initiatives were rolled out across key stakeholder
groups, covering 531 participants, and have contributed to
improved readiness and a more consistent approach to employee
relations across the organization.

In another ER conference held at Nashik Plant under the theme
“AccelERating Growth”, further reinforced the role of ER as
a strategic enabler of business performance. The conference
brought together ER and HR leaders to align on priorities focused
on organizational agility, workforce stability, and productivity, while
enabling cross-location learning through the AccelERate showcase
of practical, growth-oriented initiatives.

contract validity, license limits, and work-hour thresholds, thereby
supporting improved oversight and risk management.

Vendor Compliance Management System run on Simpliance
Enabled Audit Logic (SEAL) tool and Establishment Compliance
Management System run on Simpliance Regulatory Module
(REMO) tool, provide a centralized platform for vendor compliance
and establishment compliance respectively. These platforms
enable timely submission, tracking, and closure of statutory
requirements, supported by compliance scoring and audit trails.
This has enhanced transparency, accountability, and audit
readiness across locations while reducing manual dependencies.
Collectively, these initiatives have strengthened the organization's
ability to manage compliance in a structured and consistent
manner, while improving visibility and control across ER processes.
Taken together, these efforts reflect a shift towards a more
structured, capability-led, and forward-looking Employee
Relations function - one that not only ensures compliance, but also
contributes to organizational stability, workforce confidence, and
sustained business continuity.

Bosch's continued focus on strengthening Employee Relations
practices has been recognized at leading industry platforms. At
the SICCI National Employee Relations Conference & Awards
2025 held in Chennai, Bosch was conferred the National Award
for “Organization with Proactive ER Practices” in the Large-Scale
Industry category. Building on this momentum, Bosch was also
honored at the “11th Edition HR Tech Summit & Awards 2026”
conducted by UBS Forum, under the category of “Most Innovative
HR Tech Award”. These recognitions serve as strong testimony to
the progress made in strengthening the ER and IR landscape at
Bosch.

Health and wellness

In 2025, Bosch India strengthened its “We Care” commitment
by taking a more holistic approach to employee health and
wellbeing, recognizing that a resilient workforce is essential to
long-term business success. The organization enhanced access
to quality healthcare by standardizing Health & Wellness Centers
and Occupational Health Centers across locations. This initiative
is enabled through a strategic partnership with an external
vendor that has a strong presence across the country. Bosch also
advanced its digital healthcare journey through the successful
rollout of Electronic Health Records (EHR), enabling seamless and
secure access to health information and continuity of care.

To ensure comprehensive support, Bosch continued to provide
robust medical protection through health insurance and the Bosch
Hospitalization Scheme (BHS), while also expanding emotional
wellbeing support through platforms such as Wysa, face-to-face
counseling, and Emotional Resilience Workshops for managers.
These initiatives helped foster psychologically safe workplaces and
improve both individual wellbeing and productivity.

Bosch also focused strongly on health awareness and preventive
care through high-engagement initiatives such as Run Bosch
Run 2025, the No Sugar Challenge 2.0, Executive Health Checks,
and the Health Index Program. Together, these efforts have had
a measurable impact, including an 18.8 % improvement in the
Health Index, reflecting a meaningful reduction in health risks
and reinforcing Bosch's commitment to a healthier, future-ready
workforce.

HR as a Strategic Business Partner

HR at Bosch is closely aligned with evolving business priorities
and plays an important role in enabling transformation. While
we continue to deliver error-free and digitally enabled services to
our associates, our focus is increasingly on becoming a strategic
partner that actively contributes to business performance,
workforce transformation, and capability development.

Bosch Limited is widely recognized as a Great Place to Work, and
our internal employee engagement survey, Bosch Pulse Check,
further reflects Bosch's strong position as an employer of choice.
With low single-digit attrition, significantly below the industry
average, Bosch continues to demonstrate strong employee
commitment and organizational stability, which directly supports
sustainable business growth.

In addition, Bosch has been recognized among the Top 20
Manufacturing Organizations in India, further strengthening
its position as a leading employer in the sector. Our people and
talent practices have also received external recognition through
prestigious platforms such as AIMA’s 51st National Competition
for Young Managers - Winners 2025, the Best Young Manager
Award 2025, the People Matters Infini-T Awards 2025,
and the 5th Edition of The Economic Times Human Capital
Awards 2026, where Bosch received the Bronze Award for
Talent Acquisition. These recognitions reflect Bosch's continued
commitment to building a high-performing, future-ready, and
widely respected workforce.

INTERNAL AUDIT AND INTERNAL FINANCIAL CONTROLS

The Company has an Internal Audit function. The Internal Audit
department provides an appropriate level of assurance on the
design and effectiveness of internal controls, its compliance with
operating systems and policies of the Company at all locations.
Based on the internal audit report, process owners undertake
corrective actions in their respective areas and thereby strengthen
the controls. Significant audit observations and corrective
measures thereon are presented to the Audit Committee.

The Company has an effective and reliable internal financial control
system commensurate with the nature of its business, size, and
complexity of its operations. The internal financial control system
provides for well- documented policies and procedures that are
aligned with Bosch global standards and processes, adhere to
local statutory requirements for orderly and efficient conduct
of business, safeguarding of assets, detection and prevention of
frauds and errors, adequacy and completeness of accounting
records and timely preparation of reliable financial information.
This also identifies opportunities for improvement and ensures
that good practices are imbibed in the processes that develop and
strengthen the internal financial control system and enhances the
reliability of the Company's financial statements.

The Audit Committee reviews the internal audit plan, adequacy
and effectiveness of the internal control system, significant audit
observations and monitors the sustainability of remedial measures.
It also reviews functioning of the Whistle Blower mechanism and
reviews the action taken on the cases reported.

The efficacy of the internal checks and control systems is validated
by self-audits and verified by internal as well as statutory auditors.

OPPORTUNITIES AND THREATS

The fiscal year 2025-26 unfolded against a backdrop of geopolitical
tensions, an uncertain global trade environment, volatility in
financial markets, and fluctuations in international commodity
prices. Despite these external pressures, the Indian economy
remained resilient, supported by strong domestic demand,
sustained investment activity, and a benign inflation environment.
The Reserve Bank of India continued to note that, even as global
headwinds persisted, domestic macroeconomic conditions
remained broadly supportive of growth.

India’s growth momentum strengthened during the year. Under
MoSPI's new national accounts series with 2022-23 as the base
year, real GDP growth for 2025-26 is estimated at 7.6 %, compared
with 7.1 % in 2024-25, while real GVA is estimated to grow by 7.7
%. Growth remained broad-based, with manufacturing recording
double-digit growth, trade, hotels, transport, communication and
related services expanding at 10.1 %, financial, real estate, IT and
professional services and public administration, defence and
other services combined growing at 9.9 %, and construction at 7.1
%. Agriculture, livestock, forestry and fishing is estimated to grow
by 2.4 %, indicating a positive though more moderate contribution
relative to industry and services.

Inflation remained firmly under control for much of the year,
allowing monetary policy to turn more supportive. Headline CPI
inflation fell to 0.25 % in October 2025, the lowest reading in the
current CPI series, and stood at 3.21 % in February 2026. Over
the course of 2025-26, the RBI reduced the policy repo rate by a
cumulative 125 basis points, from 6.50 % at the start of the fiscal
year to 5.25 % by December 2025 and retained it at that level in
February 2026. In its February 2026 policy resolution, the RBI
projected 2025-26 CPI inflation at 2.1 %, underscoring the extent
of disinflation achieved during the year.

India's private sector ended 2025-26 in expansionary territory,
although momentum moderated toward year-end. According to
the HSBC Flash India PMI, the Composite Output Index eased
from 58.9 in February 2026 to 56.5 in March 2026, while the
Manufacturing PMI softened from 56.9 to 53.8. Even so, both
indicators remained comfortably above the neutral 50 mark,
signalling continued expansion in business activity. The survey
also indicated that export orders rose at the fastest pace in the
series history, helping offset softer domestic demand.

India's automobile sector achieved record-breaking annual sales
across all key segments in 2025-26, driven by improved affordability
and stronger consumer confidence following GST 2.0 reforms,
successive repo rate reductions, and revised income tax structures.
Data from the Society of Indian Automobile Manufacturers (SIAM)
indicates that passenger vehicle sales increased by 7.9 % to 4.64
million units. Commercial vehicle volumes rose by 12.6 % to 1.08
million units, while three-wheeler sales grew 12.8 % to 0.84 million
units. Two-wheeler sales also saw robust growth, expanding 10.7
% to reach 21.71 million units. Additionally, total vehicle exports
climbed 24 % to 6.65 million units, reinforcing India's position as a
key global hub for automotive manufacturing and exports.

Overall, 2025-26 reaffirmed the resilience of the Indian economy:
growth remained strong, inflation eased materially, monetary
policy turned more supportive, and core industrial sectors such
as automobiles continued to post healthy gains, even as external
uncertainties required continued vigilance.

Amid this evolving landscape, we remain focused on driving
innovation, operational agility, and excellence. We continue to
invest in advanced technologies, automation, and sustainable
manufacturing while expanding into electric mobility and alternative
fuels in line with India's green transition. Backed by strong R&D,
strategic partnerships, and a customer-centric approach, we are
well-positioned to anticipate change and deliver future-ready
solutions, as we strive to lead transformation and contribute to
India's emergence as a global automotive powerhouse.

RISKS AND CONCERNS
Risk overview

Following are the top risks and corresponding mitigation measures
reviewed by the Risk Management Committee.

1.    IT infrastructure, cyber security and data protection

Risk:

The interconnected nature of business processes in the
digital environment is increasing the risk of cyber threats
potentially disrupting business operations and leakage of
sensitive information causing financial losses or reputational
damage.

Mitigating measures:

The organization ensures safe handling of the Company's
sensitive data, including information related to associates
as well as that of our business partners by implementing
appropriate process controls as well as adequate protection
in business processes. These efforts are complimented
by detailed internal guidelines, rules of conduct, extensive
periodical training, continuous monitoring as well as various
internal and external assessments.

Data Protection Management System (DPMS), Information
Security Management System (ISMS) and Cyber Security
Management System (CSMS) stakeholder groups work
together to monitor and mitigate associated risks.

2.    Market dynamics

Risk:

The market share of company is influenced by changing
consumer behavior, high dependencies on customers,
competitive business environment and change in product
portfolios. New entrants are positioning themselves in non¬
mobility business through low-cost solutions.

Mitigating Measures:

The Company is applying design to cost principles and
implementing operational efficiency improvement initiatives
to increase cost competitiveness. The Company is also
leveraging digital ecosystem to expand market presence for
new innovative products.

3.    Supply chain

Risk:

Our business efficiency depends on timely availability of raw
material and efficient distribution systems. Supply chain
bottlenecks caused by geo-political developments namely
tariff, shipment restrictions on rare earth material and other
critical parts as well as shortage of electronic components.
Mitigating measures:

The Company is actively exploring other sourcing options as
well as working on projects to reduce import dependency
through localization. Whenever there is a need, both
global and regional task forces have taken appropriate risk
mitigating measures to meet the customer demands. The
actions include close collaboration with logistics service
providers.

4.    Financial

Risk:

Unfavorable macro-economic environment, such as tariff
threat, geopolitical tensions, currency devaluation and
negative impact on investor sentiment could lead to a global
slowdown, market recession as well may affect economic
stability.

Mitigating Measures:

The forex monitoring is performed on daily basis and
hedging is carried out as per defined internal guidelines. The
Company aims to reduce foreign exchange risks by hedging
its net exposures and constantly monitoring the risks.
Further, the investment portfolio predominantly consists of
fixed deposits in highly rated major banks and mutual funds
with necessary continuous monitoring as well as controls to
avoid any major risks.

5.    Order fulfillment

Risk:

The possible risks of production stoppage due to capacity
constraints, regulatory non-compliance in value chain and
quick change in customer demand could lead to nonfulfillment
of customer orders.

Mitigating measures:

Building strong supplier relationships through collaborative
partnerships and long-term contracts as well as close
coordination with customers, thereby closely monitoring
the supply v/s demand situation to maximize the order
fulfillment. Further, various assessments and checks are
performed in the organization by different functions ensuring
strict compliance in the entire value chain.

OUTLOOK

The Indian automotive industry exited 2025-26 on a strong footing
compared to 2024-25, with overall vehicle production (excluding
two-wheelers) rising 14 % YoY. Growth was supported by favorable
policy and macroeconomic factors, including GST rationalization,
multiple repo rate cuts by the RBI, and income tax relief measures,
which improved affordability and strengthened consumer
sentiment. While the year began on a modest note, the industry
gained momentum & closed FY26 on a high note.

Passenger vehicle production grew 10 % YoY in FY26, surpassing
FY25 peak. Demand picked up sharply post-September 2025,
supported by GST benefits, continued strength in SUV demand and
improved consumer sentiment. Inventory levels also normalized
to ~28 days (from ~52 days in March '25), reflecting one of the
healthiest channel positions in recent years.

CV segment recorded 13 % YOY. HCV segment registered strong
growth of 16 % YoY, returning to its FY19 peak. LCV segment grew 11
% YoY, surpassing its FY24 peak. Growth was driven by sustained
infrastructure spending, and festive-led demand supporting
freight and last-mile connectivity. Additionally, GST-led benefits
and repo rate cuts improved affordability, unlocking deferred and
replacement demand.

The two-wheeler segment grew 11 % YoY, surpassing its 2019
peak, driven by a favorable monsoon, higher agricultural output,
and improved rural cash flows. GST benefits and income tax relief
supported disposable incomes, while strong festive and wedding-
led demand, particularly in H2 FY26, further accelerated growth.

The three-wheeler segment grew strongly by 25 % YoY in FY26,
surpassing its FY19 peak, driven by growth in passenger mobility
and rising last-mile connectivity demand. Growth was further
supported by rapid adoption of electric three-wheelers, aided by
lower operating costs, and GST benefits.

The tractor segment was a standout performer, registering 22 %
YoY growth and surpassing its 2023 peak. Above-normal monsoon
conditions supported strong Kharif output and improved Rabi
prospects, boosting farm sentiment and tractor demand. Healthy
reservoir levels further aided farm productivity, while higher MSPs,
improved rural liquidity, GST-led support, and strong replacement
demand sustained volume growth.

MANUFACTURING AND OTHER FACILITIES
Bidadi (Karnataka)-BidP1. Introduction:

The Bidadi Manufacturing Plant (BidP) of Bosch Limited,
located in Ramanagara district near Bengaluru, is a
cornerstone of the Company’s Power Solutions business,
serving both domestic and global markets. Spread across
98 acres, the plant combines a rich legacy—ranging from the
99-year-old A-Pump and 125-year-old Glow Plug used in diesel
4 wheelers to advanced technologies such as Lambda sensor
used in 2 wheelers and NOx sensors. It features a diversified
product portfolio catering to two major business units: Diesel
Components and Sensor Business.

BidP has evolved into a future-ready, smart manufacturing
hub, driving excellence in sustainability, safety, digitalization,
and operational efficiency. The plant plays a pivotal role in
enabling business growth through successful new product
launches and high-volume production ramp-ups.

2. Operational Excellence: A Landmark Year of Growth

In 2025, BidP demonstrated exceptional operational
resilience, delivering strong results across all key
performance indicators and solidifying its position within the
Bosch network:

•    Division Leadership: BidP remained the highest
turnover contributor within the Power Solutions India
(PSIN) division

•    Key Project Milestones: A major highlight of the year
was the successful launch of the NOx sensor line in
May 2025, alongside a threefold ramp-up of LSFmPI
volumes, significantly strengthening our manufacturing
performance and topline growth

•    Market Resilience: Sustained demand across multiple
segments drove high capacity utilization and consistent
vear-on-vear growth

•    Strong Culture Driving Sustainable Performance

Backed by committed teams and a clear vision, BidP's
culture promotes teamwork, continuous improvement,
and high engagement-ensuring safe operations,
reliable quality, and sustained long-term growth.

4. Awards & Recognitions: Celebrating Excellence and
Impact

The year 2025 marked a significant milestone in BidP's
journey, with widespread recognition across national
platforms, industry bodies, customers, and within the
Bosch network-reinforcing its position as a benchmark
manufacturing plant.

•    At the national level, BidP demonstrated its strength
in continuous improvement and innovation through
outstanding performances at the Confederation of
Indian Industry (CII) Kaizen competitions.

o At the 48th National CII Kaizen Awards, the plant
secured four prestigious recognitions, including
the Jury Champion Award, Star Champion
Award, and multiple Star Challenger Awards,
for impactful shopfloor innovations ranging from
poka-yoke implementations to breakthrough
improvements in quality and maintenance
efficiency. Further elevating this achievement,
BidP earned a Platinum Award at the 51st
CII National Kaizen Competition for OEE
improvement in A-Pump Assembly, showcasing
excellence in nroductivitv enhancement.

• The plant's commitment to safety and people excellence
was recognized through the Best Workmen Award of
Karnataka conferred by the Department of Factories,
Boilers, Industrial Safety and Health, under the Mega
Industries category-reflecting BidP's strong focus on
workforce well-being and safe operations.

• Customer trust and partnership were further
strengthened through multiple prestigious
recognitions, including Best Supplier Award from
TAFE, Best Delivery Award from Escorts Kubota, and
acknowledgements from KOEL for digitalization and
future-ready initiatives-highlighting BidP's consistent
performance in quality, delivery, and innovation.

• BidP's culture of grassroots innovation was also celebrated at the Quality Circle Forum of India (QCFI), where multiple Gold Awards
were secured across Associate Quality Circles and Engineering Innovation categories, demonstrating the strength of employee-
driven improvements and technology-led problem solving.

Common Rail Injectors (CRI) for Passenger Cars and Commercial
Vehicles, along with diesel injector nozzles serving a broad range of
market applications and addressing global customer requirements.

Operating in an environment characterized by rapid market
transitions, evolving diesel demand, and regulatory changes, NaP
continued to respond with resilience, innovation, and disciplined
execution. The plant’s actions remain aligned with Bosch’s vision
to be the first choice for mobility products globally, guided by
the strategic pillars of Customer Success, People First, Value
Chain Excellence, and Accelerated Growth.

1.    Customer Success

During 2025-26, NaP delivered reliable and consistent
execution amid market volatility. The year reflected sustained
improvement in manufacturing performance across the Valve
Set, Body, and CRIN assembly lines, reflecting effective
cross-functional coordination and operational discipline
across component and assembly operations.

Targeted localization initiatives, including raw material
localization, enhanced supply resilience in line with Atma
Nirbhar Bharat strategy. In parallel, the institutionalization
of AI-driven Human Error Prevention strengthened quality,
safety, and delivery reliability, supporting long-term customer
partnerships and confidence.

2.    People First

NaP’s performance continued to be underpinned by a People
First philosophy, acknowledging that sustainable results
are built on strong shop-floor ownership and leadership
capability. Structured practices such as Toyota Kata and
Daily Leadership Routines reinforced accountability,
problem-solving capability, and engagement across levels.
Focused capability development through Centers of
Competence (CoCs) strengthened readiness for emerging
technologies and evolving business requirements. NaP’s
inclusive and employee-centric culture was externally
recognized through the Diversity Maximiser Award, the
Gold Award at the CII National Competition, and the CII
Award for Excellence in Health and Wellness, reflecting
its continued emphasis on a respectful, safe, and healthy
workplace.

3.    Value Chain Excellence

The Bosch Production System (BPS) remained the
foundation of operations at NaP, enabling transparency,
stability, and continuous improvement across the end-to-end
value chain. The plant’s focus on structured, fact-based
problem-solving was recognized through the Dorian Shainin
RT5 Leadership Award.

EHS and sustainability remained integral to operations at the
Bosch Nashik Plant, supported by strong governance and
consistent execution. During the year, NaP received several
national and global recognitions, including the CII Platinum
and Gold Awards, GEEF Global EHS Company of the
Year Award 2025, South Asia OSH India - HSE Team
of the Year, and the National Water Awards 2025.
CSR initiatives in the Trimbak region focused on water
conservation, rejuvenation of water structures, afforestation,
and community kitchen gardens, strengthening water
security and community resilience.

4. Accelerated Growth

Stable operational performance was maintained through disciplined execution, supported by consistent process stability. Ongoing
deployment of the TPM framework, together with focused capacity development, CRIN localization readiness, and digital initiatives,
supported strengthening of core operations and future capability development. Productivity efforts continued through selective
automation, advanced machining solutions, and optical inspection systems, contributing to process consistency and quality assurance.
These measures supported higher-skill operational roles and reduced reliance on manual activities, enabled through structured
capability-building.

The plant also expanded its scope through manufacturing-as-a-service, strengthening flexibility and value contribution. Supported by
empowered teams, resilient value chains, and customer-focused execution, NaP continued its progression toward becoming the Best
Execution Plant within the Bosch manufacturing network.

About Bosch Jaipur Plant

Established in 1999, Jaipur Plant is a key manufacturing lead Plant in
the International Production Network for VE pumps and conventional
Injectors (Nozzle Holder Assembly) having applications mainly in
Light and Heavy commercial vehicles and tractors. Building on the
milestone of completing 25 years in 2024, 2025 had emerged as a
defining year for Bosch Jaipur Plant (JaP), demonstrating resilience,
growth and transformation. Guided by our vision UDAAN.NXT, JaP
strengthened its position as a preferred manufacturing and business

destination, delivering strong results across Safety, Quality, Cost,
Delivery, Digitalization and People development.

The business delivered a strong performance through decisive
customer acquisition, disciplined execution, and 100 % delivery
fulfillment, supported by a continued focus on operational
excellence. Expansion with customers such as Daedong, TYM,
and Kartar, alongside strengthened local OEM and aftermarket
engagement, enabled the organization to exceed its TNS business
plan target by ~28 %. Customer recognitions from CNHi and
Greaves reflect sustained progress toward the Zero Defects
ambition, in line with the JaP House of Quality.

Digitalization remained a strong enabler of performance in
2025, with the plant achieving a digital maturity level of 83%.
Deployment of MES, AI-based vision systems, collaborative
robots (COBO), advanced data analytics significantly improved
productivity, quality assurance, and operational robustness. The
initiatives also received national recognition at platforms such as CII
DigiTech and other innovation forums, reflecting the plant's digital
leadership. Our Gen AI-based recommendation solution which
enabled accurate VE pump rework through intelligent guidance,
removing reliance on highly skilled operators was recognized at
BBM AI Day. This solution empowers semi-skilled operators,
improves the process flow, accuracy, and batch dispatch lead time.
JaP progressed to Level-2 BPS maturity, reflecting stable
processes, standardized practices and deployment of BPS GO+
across value streams.

Bosch JaP strengthened its societal impact through focused CSR
initiatives across environment, water, education, road safety. Key
efforts included sustained afforestation drives with CRPF and
local Gram Panchayats, support to the Moondali Lake Rejuvenation
Project capturing ~1.5 Croresc liters of rainwater, and large-scale
road safety education engaging teachers, youth, and communities,
reaching 10,500+ beneficiaries. These initiatives, impacted over
400,000 stakeholders. For our outstanding contribution to girl child
education, with impactful initiatives benefiting 108 government
schools, we were conferred by prestigious Bhamashah Award
from the Government of Rajasthan.

In 2025, JaP successfully conceptualized, hosted, and executed
the Value Chain Conference at Jaipur, reflecting strong
ownership and execution excellence, and was recognized for best
implementation practices & Customer crown award. The plant was
further honored with four Quality awards at QCM 2025, reinforcing
its sustained focus on excellence and continuous improvement

Safety & Sustainability remains central to JaP operations, marked
by Zero Waste to Landfill, 4 months of zero freshwater
withdrawal, zero accidents for over 1300 days, and a
steady increase in renewable adoption, with green energy now
contributing 28 % of total energy consumption, supported
by AI-based solar analytics. These efforts were recognized by CII
Northern Region, conferring JaP the Water Conservation and
Waste Management Champion Award.

Nurturing People is a key strategic pillar under our vision
UDAAN.NXT at Bosch Jaipur. We continue to strengthen
competencies through focused capability building, enable career
growth across the organization, and actively promote diversity and
inclusion. Employee engagement and well-being are reinforced
through a structured engagement calendar encompassing sports

initiatives, regular medical programs such as health check-ups and
walkathons. Open-door interactions with Plant Management

foster transparency and trust, while a leveled sports framework,
including BCA and M&SS, promotes inclusive participation,
teamwork, and a positive work environment.

To make JaP a preferred destination—“Destination JaP”—the
plant continues to strengthen its strategic position within the
IPN network. The strategic momentum is further reinforced
by the successful acquisition of new customers such as
Daedong, TYM, and Kartar in 2025, highlighting JaP's enhanced
competitiveness and customer trust. The Jaipur Plant is working
on consolidating the VE (Verteiler Einspritz ) Pump business in
the International Production Network (IPN) , collaborating with
the team from the Higashimatsuyama plant in Japan. The entire
Zexel design VE Pump manufacturing from Japan will be shifted to
Jaipur by End 2026, and preparations for future challenges include
exploring 3D printing technology for handling complex, varied, and
small lot sizes. Competency building for metallic 3D printing is
underway, positioning the Jaipur Plant as the hub for 3D printing
in the region.

Naganathapura (Karnataka)-NhP

The Naganathapura Plant produces Spark Plugs, a product
produced by the Bosch group for over a century and various
kinds of Automotive Filters. Productivity improvement projects
were implemented in addition to safety and quality improvement
programs. The plant made significant progress on its transformation
journey towards best performance. Digital Transformation
continues to be a strategic focus area, and the Plant is moving
towards improving its digital footprint for Industry 4.0 with various
projects like connecting the production lines and machines to a
central platform to calculate OEE and production daily on real time
basis. The plant invested in new laser welding process for precious
metal spark plugs and received the machine for the same in 2025.
In beginning of 2026 the plant achieved start of series production
of locally made Platinum electrode spark plugs which have longer
product lifespan.

The Plant improved its operational excellence through structured
implementation of Bosch Production System (BPS) in 2025
resulting in a significant jump in the maturity assessment of the
same and for the first time, this was higher than that of the Lead
plant of Spark Plugs in Germany.

Spark Plugs business received orders for the export market,
thereby Naganathapura Plant is transforming itself from being a
“Local for Local” to “Local for Global” Plant.

The new addition of locally made Platinum electrode spark plugs
supports this transformation with increased export orders that
could be received in 2026 and onwards.

The Plant has sustained Gender Diversity with > 25 % of the flexible
workforce being women deployed in shopfloor in 2025 in all shifts,
including night shift.

The Plant became a zero liquid discharge plant a few years ago
with installation of an evaporator along with a boiler and thereby
exceeds the requirements specified by the Karnataka State
Pollution Control Board and has become a benchmark for the
same. It has been a Carbon Neutral plant since July 2020.
Gangaikondan (Tamil Nadu)-GanP

The GanP plant is strategically located in the southern part of
India, approximately 40 km from Tuticorin Airport. The plant plays
a pivotal role in serving the Power Solutions business segment,
catering to both domestic and global markets.

With an impressive portfolio of 12 products, GanP supports a
wide range of technologies including ICE, EV, and Hydrogen (H2),
supplying to leading OEM customers across the world.

During the year 2025-2026, the plant demonstrated significant
growth across all key performance indicators—Safety, Quality, Cost,
and Delivery—highlighting its strong foundation in operational
excellence. This progress has been further reinforced through high
levels of people engagement and impactful CSR initiatives.

GanP stands out for its exceptional flexibility and diversity. As one
of the youngest plants in India, it is a women-driven organization,
with 70 % of the shopfloor workforce comprising women, 25 % men,
and 5 % differently-abled employees—making it a true benchmark
for inclusive and future-ready manufacturing.

Sustainably & Safety:

The plant has achieved significant milestones in health, safety,
and sustainability through structured initiatives and strong
compliance practices. A 100 % fire sprinkler system has been
implemented, alongside 96 % BBS compliance and completion of
FMEA for MAE safety. The facility has been recognized with an EHS
Excellence Award and maintained zero non-conformities in IMS
external audits. Sustainability efforts include implementation of a
1500 KL rainwater harvesting system, contributing to 22 % water
utilization and savings. The plant has also achieved 100 % green
energy through wind and solar power and successfully completed
plantation of 5,000 trees. These initiatives are supported by a
strong safety and environmental culture, reflected in reduced
incidents and achievement of near miss reporting targets.

Furthermore, continuous employee engagement programs, safety
trainings, and awareness campaigns have strengthened workforce
participation in EHS practices. Proactive risk identification and
corrective actions have enhanced operational reliability and
minimized potential hazards. The organization remains committed
to continuous improvement, aligning its EHS and sustainability
goals with global best practices and regulatory requirements.
Operational Excellence:

GanP is widely recognized for its strong operational excellence
culture. In recognition of this, the plant was honored with the
prestigious Golden Award from NAMC, reinforcing its benchmark
performance and continuous improvement mindset.

This year, GanP was also awarded as the Best VCS Implemented
Plant, demonstrating excellence not only internally but also through
multiple external recognitions. Overall, Bosch received 38 internal
and external awards from reputed bodies such as Confederation of
Indian Industry and key customers—further strengthening GanP's
position as a high-performing plant within the network.

In 2025-26, GanP achieved its highest-ever turnover, marking a
significant business milestone. Continuing its focus on quality
excellence, the plant inaugurated one of the best Quality Learning
Centre for Maruti Suzuki India Limited, becoming the first MSIL
supplier to establish such a facility-setting a new benchmark in
supplier quality capability building.

The Bosch Production System has been a key driver in
strengthening standards and operational excellence across the
entire value chain-Source, Make, and Deliver. GanP continues to
be a frontrunner in adopting Industry 4.0 initiatives, seamlessly
integrating BPS and digitalization to achieve next-level operational
performance.

A strong culture of associate involvement is a major enabler at
GanP. Every year, nearly 4,500 ideas are generated by blue-collar
associates, reflecting high engagement and ownership. Notably,
one GanP associate secured the 2nd Runner-Up Award at the
ROIN level for the highest quality idea-showcasing the plant's
innovation-driven mindset.

GanP has also demonstrated logistics excellence by leveraging
railway transportation and exploring the potential of the nearby
Tuticorin seaport. These initiatives have not only optimized its own
logistics cost but also supported other plants in reducing lead time
and overall logistics cost.

The plant has established a robust Rewards & Recognition
framework that acknowledges the exemplary contributions of both
Blue Collar (BC) and White Collar (WC) employees. This structured
approach ensures that performance, innovation, and commitment
are consistently celebrated, reinforcing a culture of appreciation
and excellence.

Through year-round engagement activities, GanP continues to
strengthen employee connect, enhance morale, and build a strong
sense of belonging-resulting in a highly motivated and committed
workforce that contributes actively to the plant's success.

GanP is deeply committed to the continuous development of its
employees, with a strong focus on building future-ready talent.
The plant actively promotes internal job rotations IJR & STEP,
enabling employees to gain cross-functional exposure and develop
competencies across various domains.

WINGS - Women Inspiring Growth & Success, a dedicated
development platform aimed at empowering women employees.
The program focuses on increasing diversity in managerial
roles, including SLx levels, while also nurturing shopfloor
women associates to progress into higher responsibilities.
Through structured learning, mentoring, and career progression
opportunities, WINGS plays a pivotal role in shaping the next
generation of women leaders at GanP

Chennai (Tamil Nadu)-ChiP

Power Tools Manufacturing Plant, Chennai (Tamil Nadu)

The Chennai Power Tools plant, spanning approximately 7,000 sq.
mts at the SIPCOT Industrial Growth Center in Oragadam,
Tamil Nadu, stands as a global manufacturing powerhouse.
Driven by core strengths such as its India Engineering Center,
a unique 100 % women workforce in shopfloor, a robust local
supplier base, and its strategic location, the facility reached a
historic milestone of 15 million power tools in 2024. As the plant
celebrates over 10 years of operational excellence in Chennai
since its inauguration in 2015, it continues to be guided by the
purpose of PT India—"Bosch power tools in every artisan’s
hand." The Engineering Center has been pivotal in developing
products for the "Local for Local" (L4L) market, strongly
supported by aggressive localization efforts exceeding 70 %. To
further boost operational efficiency, the plant is intensely focused
on component localization, productivity, and digitalization
across all key business processes, while maintaining its status as a
carbon-neutral leader.

As the plant's profile rises within the global network, its focus has
intensified on a "Local for Global" (L4G) strategy, leveraging its
high competitiveness and the capability of its people to deliver
world-class products This is highlighted by the first-ever export
of Angle Grinders to the EU market in 2025, proving the plant's
ability to meet the world's most stringent quality standards.
Moving forward, the facility is positioned as the preferred
manufacturing location for corded segments in alignment with
India's BIS regulations and with future exports expansion plan.
This strategic importance is further cemented by the plant securing
BIS certifications for Drills, Grinders, and Rotary Hammers

—marking an industry first in India for both the Grinders and
Rotary Hammers segments. To meet this surging demand, the
facility is rapidly moving towards another historic milestone of 20
million power tools by H2.2026, solidifying its status as a future-
proof hub for the local & international market.

Smart Campus Transformation:

Engineering Sustainability, Reliability, and the Future

Over the past year, we embarked on a comprehensive
transformation of our Smart Campus with a clear and deliberate
objective: to enhance energy efficiency, strengthen system
reliability, and align our infrastructure with long-term sustainability
goals. Rather than pursuing isolated upgrades, we adopted a
holistic modernization approach—reimagining core utilities such
as cooling, power, and water to reduce operational costs, minimize
environmental impact, and future-proof our campus against
evolving regulatory and business demands.

This transformation reflects our belief that infrastructure
excellence is a strategic enabler—supporting innovation, employee
well-being, and responsible growth.

Advancing Energy-Efficient and Low-Carbon Cooling

A key milestone in our journey was the replacement of two 100
TR chillers in our R&D building with next-generation systems
using R1234ze refrigerant. This transition significantly improves
the coefficient of performance while adopting a refrigerant
with a low Global Warming Potential (GWP). The outcome is
twofold: substantial reduction in electrical energy consumption
and proactive alignment with future environmental regulations—
ensuring long-term resilience of the facility.

To fully realize these gains, we complemented water-side efficiency
with air-side optimization. Fourteen Air Handling Units across
Engine Test Laboratories were upgraded with EC and EC+ fan
technologies, enabling up to 50 % energy savings compared
to conventional systems. These upgrades deliver more than
efficiency—they improve acoustic comfort, enhance controllability,
and ensure that energy benefits are translated directly into
occupied spaces.

Strengthening Water Sustainability and Campus Resilience

Water stewardship remains a cornerstone of our sustainability
strategy. During the year, we implemented a centralized drinking
water treatment plant at the North Campus. This initiative ensures
consistent water quality, centralized monitoring, and optimized
consumption across facilities.

Investing in Employee Well-Being: Adugodi South Campus Central
Kitchen

To support our growing campus population, we operationalized
the Adugodi South Campus Central Kitchen, a world-class facility
spanning 5,290 square meters across three floors. The ground
floor hosts the kitchen, the first floor accommodates the dining
area, and the second floor integrates technical services.

The fully air-conditioned kitchen is equipped with electric
cooking appliances and biogas systems, significantly reducing
environmental impact. Key features include:

•    State-of-the-art ventilation with exhaust hoods and integrated
fire suppression systems

•    Dedicated cold storage, change rooms, and structured food
storage areas

•    Real-time monitoring through Building Management Systems
(BMS) and CCTV surveillance

This facility now serves over 10,000 associates daily, ensuring
high standards of food quality, safety, and operational efficiency—
while reinforcing our commitment to sustainability and employee
welfare.

Smart Office Renovation for Modern Workstyles

As part of our Smart Campus vision, we completed office
refurbishments at two buildings, covering approximately 1,800
square meters. These spaces are now equipped with state-of-the-art
interiors, modern furniture, and advanced audio-visual systems—
enabling collaborative, flexible, and technology-enabled working
environments aligned with evolving workplace expectations.

INFORMATION TECHNOLOGY AND DIGITAL TRANSFORMATION
(IT AND DT)

In our pursuit of enabling growth and competitiveness for Bosch in
Region India, we remain committed to empowering our businesses
and functions with a digital edge, by enhancing human experiences,
improving profitability, and making RBIN a #AI First Enterprise
We remain steadfast in focusing and achieving our key goals viz.,

a.    AI led business transformation,

b.    Strengthening our Digital Core,

c.    Modernizing our infrastructure and application architecture,

d.    Optimizing total cost of ownership,

e.    Enabling overall experiences covering employees, customers
and partners

f.    Creating an Intelligent Enterprise and

g.    Ensuring compliance.

Our endeavor is well enabled by excellent collaboration internally
with our plants, functions and business GBs. Our partner eco¬
system renders us with the agility and flexibility in handling the
flow of our digitization requirements. We have also strengthened
our Delivery excellence to offer greater customer satisfaction and
experience of interacting with team BDO.

Our Key Goals and Achievements:

AI led business transformation

1.    Creating business Impact through AI: We have made
significant progress in establishing a structured AI ecosystem
through the launch of VISM.ai (Value driven Innovation &
Strategic Management of AI), creating a strong foundation
for AI-driven innovation and scaled adoption of AI across
RBIN. Through focused AI initiatives, several high-impact
use cases have been identified, developed, and validated,
demonstrating tangible business value.

In parallel, AI Awareness and Discovery workshops across
plants and functions have enabled the identification of a
strong pipeline of use cases, supporting scalable and impact-
driven AI adoption.

2.    Platform for Scalable and Responsible AI: We continue
to focus on building a secure, scalable, and future-ready
AI ecosystem by defining a comprehensive AI architecture
aligned with enterprise standards. This includes the
development of data, analytics, and AI platform layers,
ensuring responsible and compliant use of AI technologies.

3.    Creating AI first mindset: Driving AI adoption across the
organization requires a strong cultural foundation. We have
taken focused steps to build this mindset through initiatives
such as the AI Fluency program, aimed at enhancing
awareness and practical understanding of AI across
functions. In addition, platforms like BBM AI Day have played
a key role in fostering engagement, showcasing innovations,
and encouraging collaboration across teams.

Strengthening our Digital Core

1.    ERP Process Optimization: Our ERP process specialist
team has conducted process maturity assessments across
all locations and process areas, reinforcing our sustained
focus on process harmonization and optimization. These
improvements are vital in preparing the organization for
embracing digitalization and operational excellence.

2.    Focus on Data Quality: Ensuring clean, accurate, and
accessible data remains a key priority, forming the backbone
of reliable insights and effective decision-making. Through
sustained efforts under the Ready to Drive (Continuous
Standardization and Improvements) initiative, we continue
to drive data quality improvements and provide ongoing
support to plant operations, enabling a stronger foundation
for data-driven excellence.

3.    S/4 HANA Preparation: The processes of existing SAP
R/3 and S/4 HANA templates were compared to identify
the gaps and preparation of IT business change requests is
ongoing to address the same. Additionally, processes which
need changes to adopt for S/4 template are identified. The
rollout of horizontal financial backbone system, which is a
prerequisite for S/4 HANA is ongoing with planned Go-Live in
Oct-2027.

Optimizing Total Cost of Ownership

4.    IT Cost Optimization: In our drive for cost optimization,
we have maximized IT efficiency through asset usage
enhancement, removal of unused software, assignment
of appropriate user licenses. This rationalization enables
resource allocation to strategic priorities, fostering
sustainable growth for stakeholders.

5.    Application Lifecycle    Management: With an eye

on scalability and simplicity, we undertook a major
rationalization of our digital landscape. Applications were
streamlined, and redundant systems were phased out,
resulting in a more agile and cost-effective portfolio. Various
state of the art applications for Leave Management, Contract
Employee Management System, Claims Management,
Financial Management, and Board Management Suite was
successfully deployed, aiming to streamline processes and
improve efficiency. Across the organizational landscape,
mobile applications have emerged as essential tools for
optimizing operations and boosting productivity.

Enabling overall experiences covering employees, customers

and partners

6.    Customer & Employee Experience: We continue to
advance our digital journey by enhancing both customer and
employee experience through data-driven solutions. Focused
efforts were made to improve transparency, responsiveness,
and decision-making support for customers via smarter
digital interfaces and strengthened data capabilities.

On the employee front, existing mobile applications were
modernized and enhanced driving greater engagement,
seamless communication, and operational efficiency.

7.    Customer-Centric Innovation: Advancing our commitment
to customer-centric innovation, we have established a
platform to provide seamless information exchange between
Bosch and its customers, strengthening our “zero distance
to customer” approach. By enhancing connectivity and
transparency, we are better equipped to address evolving
customer needs and ensure meaningful, data-driven
engagement.

8.    Partner Experience: We continue to strengthen our external
digital ecosystem by integrating intelligent solutions across
key partner touchpoints. These efforts support our broader
vision of fostering a connected, collaborative, and digitally
empowered partner network to drive sustainable growth.

Creating an Intelligent Enterprise

9.    Center of Excellence - Hyper Automation: The Center
of Excellence for Hyperautomation continues to drive
significant value by accelerating automation adoption across
our operations in India. This year, our focused approach
has enabled the successful delivery of multiple high-value
projects with strong resource efficiency. Key achievements
include the stabilization of the Hyperautomation lifecycle
orchestration platform and the addition of Copilot Studio,
enhancing our automation capabilities. Initiatives such as
"Ideathon” workshop and “Copy with Pride” continue to
foster innovation and enable scalable, impactful solutions.

10.    Center of Excellence - Analytics: In today's data-rich
world, Bosch India recognizes the immense potential of data

analytics to optimize operations and drive strategic decision¬
making. To unlock this potential, we have established a
Center of Excellence (CoE) for Data Analytics. This initiative
aims to cultivate a robust analytics capability across all major
functional teams within the organization. Key Achievements
being:

a.    Dashboards delivering business insights for 10+
divisions and functions

b.    Sustenance of community of practitioners (100+) with
multiple advanced analytics competency

We continue to explore and adopt next-generation
technologies with a sharp focus on practical impact and
scalability. Our GenAI initiatives have progressed from pilot
phases to implementation, targeting areas such as sales
enablement, customs classification, and R&D knowledge
management. These solutions help streamline operations,
enhance decision-making and drive long-term efficiency by
embedding intelligence into everyday processes.

Enabling Governance and Compliance

11.    Access Management: Continued focus on strengthening
access governance has led to improved process adherence
and system integration. Key initiatives have enhanced
control, reduced manual interventions, and supported
secure and streamlined user lifecycle management across
the organization. We have implemented 'Business Role
Catalogue' which has simplified the process of requesting
authorizations by the user department, thereby bringing in
transparency and clarity in the authorization management
process.

12.    Compliance: We continue to leverage digital technologies
to strengthen our compliance posture and ensure seamless
adherence to regulatory and statutory requirements.
Localization, automation, and standardization have
improved agility, transparency, and audit readiness across
the organization. Trusted Information Security Assessment
Exchange (TISAX) certification completed successfully
across our Plants and Corporate Office.

We have achieved a significant milestone in our journey of
operational excellence with the successful certification
under ISO 27001:2022, marking the first time the organization
has attained this globally recognized Information Security
Management System (ISMS) standard.

ISO 27001:2022 certification reflects RBIN's structured and
systematic approach to safeguarding information assets,
build trust with customers, gain a competitive edge in the
marketplace, managing security risks, and embedding
robust information security practices across operations. The
certification reinforces the organization's commitment to
strengthening trust and upholding the highest standards of
security in line with global best practices.

The Digital Personal Data Protection (DPDP) Rules, 2025 were
notified on November 13, 2025 by the Ministry of Electronics
and Information Technology (MeitY) and to be implemented
in a phased manner over the period of 18 months (i.e.
go-live second quarter 2027). Complying with the Indian
DPDPA Rules is crucial for building trust with customers and
demonstrating a commitment to data privacy. As part of the

Bosch preparedness, a PDP project was already set-up to
drive the implementation and rollout of DPDP compliance
across all Bosch India Entities.

Cybersecurity is now a key focus area within risk management
and we have reinforced our position by implementing
robust vulnerability scanning, remediation and reporting
mechanisms.

Key Enablers:

13.    Collaboration and Business Partnerships: We continue
our focus on digital transformation by strengthening
collaboration across our manufacturing plants and corporate
functions. With a strong pool of external partners identified,
we are sustaining momentum and ensuring agility in
responding to evolving business needs through robust IT and
digital partnerships.

14.    Plant Engagements and Roadshows: Engagement across
plant locations was further strengthened this year with the
introduction of roadshows, site interactions and review
mechanisms. These initiatives have played a key role in
creating awareness, accountability and fostering a culture of
collaboration.

15.    Culture and Communication: Driving a digital
transformation goes beyond technology, it begins with
people. Our Culture & Communication efforts focus on
fostering a shared digital mindset and encouraging active
participation across the organization. Through a structured
framework, we are actively shaping the narrative around “AI
first mindset” and "Being Digital,” with increasing visibility
across global platforms.

Awards and Accolades:

We continue to receive numerous industry awards and accolades
this year, recognizing our commitment to digital transformation
and delivering business value through innovative solutions.
Bosch India was honored with the LogiTech Award for the Best
Supply Chain Transformation Project (TraVis), acknowledging
our advancements in supply chain digitalization. Additionally, we
received the Digital Intelligence Award at Maruti Suzuki's MQVC
2025 for the ECU Diagnostics application, and we were further
recognized at the CM National AI Awards 2025, where our Al-
based Inventory Optimization initiative was acknowledged for its
contribution to intelligent and data-driven operations.

CHANGE INITIATIVES
Value Chain Strategy - NxT

In today's competitive landscape, manufacturing excellence is
no longer shaped by regional performance alone. It is measured
against global benchmarks for quality, cost competitiveness,
speed, and reliability. Success therefore depends not just on strong
strategy, but on the ability to translate strategy into consistent,
high-quality execution.

Against this backdrop, Bosch India drives the Value Chain
Strategy - NxT (VCS.NxT) with a clear ambition: to position
Bosch India as a preferred global value chain partner for

customers across industries.

Aligned with Bosch's global operations strategy, VCS.NxT enables
sustainable and profitable growth through four strategic pillars:

•    Customer Delight - delivering superior quality, reliability,
and responsiveness

•    Innovative Industrialization - accelerating smart,
future-ready manufacturing

•    People Excellence - developing skilled, empowered, and
engaged teams

•    Operational Excellence - building efficient, resilient, and
competitive value chains

The strategy is governed by Bosch India's senior leadership, with
plant managers and functional leaders driving execution across
defined strategic action fields. A structured governance model
ensures clear accountability, disciplined execution, and fast
decision-making across locations.

VCS.NxT spans the full operations ecosystem—manufacturing,
quality, logistics, purchasing, digitalization, and people
development. Its focus areas include:

•    Standardized and robust operational processes

•    AI- and data-driven problem solving

•    End-to-end connected value streams across sourcing,
production, and delivery

•    Targeted capability building for future technologies and
leadership roles

Together, these initiatives strengthen operational resilience and
improve performance across the value chain, supporting Bosch
India's long-term competitiveness and growth.

Quality Management

Ri lilrlino Tri ict \A/ith f'l ictnmor Holiaht

Quality remains a prime focus of Bosch's commitment to
operational excellence and customer trust. During the year, while
0-mileage customer incidences attributable to Bosch failures
reduced by 8 % reflecting improved product Quality at the point of
delivery though a notable increase in overall customer incidences.
Logistics-related incidences and internal defect costs, however,
remained stable, indicating sustained control within internal
operations and supply chain execution.

Our Quality First strategic action field under VCS.NxT, focused
initiatives were driven across Bosch India within three sub-action
fields: Building Insightful and Trusted Partnerships, Preventive
Quality Organization, and Supplier Quality Improvement.
Supported by clearly defined KPIs to ensure disciplined execution
and continuous improvement. A data-driven approach enabled
closer collaboration with key customers such as MSIL and
TVS, resulting in quicker response cycles to Quality issues and
recognition at the MSIL Vendor Quality Conference 2025. Joint
investigations, ECU simulation exercises, and EOS awareness
programs further strengthened customer confidence and
demonstrated Bosch's problem-solving capabilities, contributing
to improved customer perception. Enhanced problem-solving
maturity across plants was recognized with two prestigious
Shainin Dorian Awards, while focused supplier Quality initiatives
delivered a 12 % improvement over the previous year.

Significant emphasis was also placed on embedding a strong
Quality mindset through leadership engagement on Value Stream
Basics, recognition and motivation of shopfloor associates to
inculcate the Quality mindset behavior via the Q1st Associate
program. Quality Mindset Drive initiatives reinforced foundational
Q-Basics, promoted proactive problem prevention, and
strengthened the “Learn to See” approach to identify deviations in
day-to-day operations.

Looking ahead, Bosch remains focused on improving agility and
responsiveness to customer needs to further strengthen trust and
deliver sustained customer delight.

Bosch Production System (BPS): 2025 Overview

In 2025, Bosch India further strengthened its manufacturing
foundation through the Bosch Production System (BPS)—the

Company's global framework for operational excellence. Under the
transformation program BPS GO!+, the focus was on accelerating
performance improvements and scaling best practices across
plants.

Four priorities guided BPS initiatives during the year:

•    Leadership    Commitment

•    Everyday Continuous Improvement

•    Waste-Free    and Stable Production Flow

•    Investment    Efficiency

With a strong emphasis on digital enablement and standardized
execution, these initiatives delivered measurable improvements in
efficiency, transparency, and reliability across the production value
stream.

Building a Strong Continuous Improvement Culture

A robust culture of continuous improvement was reinforced
through leadership involvement, structured capability building,
and digital integration.

•    Digital Capability Development

Around 85 % of manufacturing associates in Bosch India
completed advanced training on digital manufacturing tools,
strengthening data-driven decision-making and real-time
operational transparency on the shopfloor.

•    Structured Problem Solving Beyond the Shopfloor

The Toyota Kata methodology-focused on scientific thinking
and coaching-was expanded beyond direct manufacturing
into indirect functions. This helped embed structured
problem solving and continuous learning across the
organization.

•    Standardized Lean Management

Daily performance management routines and layered
process confirmations were digitally standardized across
plants. These routines improved consistency, strengthened
governance, and ensured long-term sustainability of lean
practices.

Waste-Free and Stable Production Flow

Targeted initiatives were deployed to improve production flow,
eliminate waste, and enhance delivery performance.

•    End-to-End Flow Transparency

A digital throughput-time dashboard provided real-time
visibility into value-adding and non-value-adding activities.
This enabled faster identification of bottlenecks and more
focused improvement actions.

•    Inventory and Material Efficiency

Digitally enabled leftover management improved material
transparency, reduced waste, and increased resource
utilization across plants.

•    Line Balancing Excellence

Improved line-balancing standards led to a 26 % increase in
operational efficiency, supporting smoother production flow
and more reliable customer deliveries.

Investment Efficiency and Cost Competitiveness

To strengthen cost competitiveness while supporting growth,
Bosch India focused on maximizing value from capital investments.

•    Standardized Manufacturing Equipment

Reuse and standardization of assembly equipment enabled
faster replication and economies of scale across plants.

•    Innovation-Driven Cost Avoidance

Creative engineering solutions leveraged existing assets
to meet new requirements, avoiding unnecessary capital
expenditure.

•    Optimized Asset Utilization

Cross-plant sharing of spare tools and optimized procurement
improved utilization rates and reduced overall costs.

Benchmarking and Continuous Maturity Assessment

Bosch India further strengthened its ability to measure and improve
operational maturity.

•    Capability Calibration

Assessors and plant teams were aligned on the latest Bosch
Production System maturity standards, ensuring consistent
evaluation and benchmarking.

•    Value Stream Gap Analysis

Structured value-stream assessments helped identify
targeted improvement actions and accelerate maturity
progression.

•    Knowledge Sharing Platform

A centralized knowledge database was introduced to
capture best practices and lessons learned, accelerating
organizational learning across locations.

Climate Action

Bosch Group supports the United Nations 2015 Paris Agreement
on climate action and the target formulated therein of limiting
global warming to as close to 1.5 degrees Celsius as possible.
This aspiration also shapes our climate targets, which have been
confirmed by the SBTi for the 1.5-degree pathway.*

*Robert Bosch GmbH’s entry in the Science Based Targets
initiative sTarget Dashboard.

Bosch Group is pursuing the target of reducing its scope 1 & 2 CO2
emissions by 85 % by 2030 (baseline year 2018).*

•    Scope 1, 2, 3 are used in accordance with the Greenhouse Gas
Protocol Corporate Accounting and Reporting Standard. We have
taken into account the effects of both CO2 and of other greenhouse
gases, as well as climate-relevant substances, to the extent that
these are of relevance for the analysis. To enable comparability
between the climate impact of the various greenhouse gases and
substances of relevance for the climate, emissions are presented
in CO2 equivalents. For ease of reading, we use the terms CO2 and
CO2 equivalents synonymously.

With its more than 470 locations worldwide, the Bosch Group
has been carbon-neutral overall since 2020 (scope 1 & 2). Four
levers were used to achieve carbon neutrality: increasing energy
efficiency, generating our own energy from renewable sources
(new clean power), purchasing electricity from renewable sources
(green electricity), and - as the last resort - offsetting residual CO2
emissions with carbon credits.

At Bosch India, we are committed to advancing renewable energy
generation and fostering sustainability through various initiatives.
This includes generating renewable energy at our own facilities
and establishing long-term supply agreements to support the
development of new photovoltaic plants. We continue to focus on
phasing out substances with climate impact by transitioning from
higher Global Warming Potential (GWP) substances to lower GWP
alternatives.

Bosch Limited has adopted a systematic 4E (Energy Audit, Energy
Re-tuning, Energy Lifecycle, and Energy Culture) approach and
is embracing digitization though the 4C approach (Connect,
Communicate, Consolidate, and Cognitive).

During the financial year 2025-26, out of the total electricity
demand of the Company,16 % of the demand was met through
in-house solar power plants. The volume of purchased green
electricity from new plants (PPA) and corresponding guarantees
of origin amounted to 137.8GWh fulfilling 84 % of total electricity
requirement. Additionally, 9239.17 metric tons of CO2 was
compensated with carbon credits during 2025-26.

At the same time, we also want to reduce emissions produced
outside Bosch's direct sphere of influence (scope 3), for example
at suppliers, in logistics, or when our products are used. Our aim
is to reduce these upstream and downstream emissions by 30 % in
absolute terms by 2030, compared with the baseline year 2018 -
irrespective of our Company's growth.

Work safety

Measures to protect and promote associates' health and provide
a safe working environment at all times have always been a
top priority for Bosch. Internal regulations define the relevant
principles, organization and responsibilities within the Bosch
Group.

Bosch Group carry out an in-depth analysis of any work-related
accidents causing at least one day of downtime - irrespective of
whether Bosch associates or third-party staff are involved. In the
event of serious accidents, special analysis methods are used to
perform a detailed investigation of the root causes and to derive
specific measures.

Based on internal regulations, workplace or activity-related hazard
assessments are also carried out regularly. These are used as a
basis for determining any preventive and protective measures
needed, and our associates are instructed accordingly.

Bosch Limited continue to advance its Value Chain Strategy
(VCS.NXT), placing a strong emphasis on the “Zero Accident”
initiative within the sustainability pillar. We focus on strengthening
engineering controls through detailed risk assessments, improved
machine safeguarding, and interlock enhancements to address
risks at source. These measures have been implemented across
locations to ensure consistency in safety standards. At the
same time, efforts to sustain Behavior-Based Safety (BBS) have
been continued through a structured observer program and
standardized observation checklists, enabling regular feedback
and reinforcement of safe practices.

Our approach to fostering a robust safety culture is anchored
in a three-pillar framework: MAE (Machines and Equipment)
safety, Human Factors, and Management Systems. We have made
significant strides in enhancing MAE safety by focusing on key areas
such as the standardization, effective interruption management,
and the prevention of human error.

Our enabling and leading KPIs have shown marked improvement,
reflecting our commitment to safety. For instance, we have seen
better performance in near miss reporting closure rates and a
strengthened culture around first aid reporting. These metrics not
only demonstrate our initiative-taking approach to safety but also
highlight the engagement of our associates in cultivating a safer
workplace.

Through these initiatives, we aim to reinforce our commitment
to safety and ensure that all associates are actively involved in
fostering a culture of safety, driving us closer to our goal of zero
accidents.

AWARDS AND RECOGNITION

During the year under review, the Company won several awards for excellence. They are:

Sr. no Dept    Award

1    DEI    Best Companies for Women In India - 2025 by Avtar Seramount

2    DEI    Most Inspiring Workplace for Women in India - 2025 by Economic Times Human Capital Awards

3    Bidadi    Plant    Best Workmen Award (Mega Industries Category, Winner) - Department of Factories,    Boilers,

Industrial Safety & Health

4    Bidadi    Plant    Best Supplier Award (Overall Performance) - TAFE Global Suppliers Award 2025

5    Bidadi    Plant    Best Delivery Award (Bosch Limited) - ESCORTS KUBOTA Limited Suppliers Meet 2025

6    Bidadi    Plant    Digitalization & Future Ready Supplier Award - KOEL

Project: Integrating value streams with digital connectivity in operations

7    Bidadi    Plant    Gold Award (Associate Quality Circles - QC) - Quality Circle Forum of India, 34th Chapter

Project: Bearing Cover Quality Improvement through simple automation

8    Bidadi    Plant    Gold Award (Associate Quality Circles - QC) - Quality Circle Forum of India, 34th Chapter

Project: Poka-Yoke Implementation in Pre-Packing Line (A-Pump)

9    Bidadi Plant    Gold Award (Engineers - Quality Innovation Technology) - Quality Circle Forum of India, 34th

Chapter

Project: Camera-based detection of wrong DV holder & O-ring assembly

10    Bidadi    Plant    Gold Award (Associate Quality Circles - QC) - Quality Circle Forum of India, 34th Chapter

Project: Barrel bore measurement improvement using high-resolution digital gauge

11    Bidadi    Plant    Platinum (Runner-up) - Digitalization & AI for Quality (Manufacturing Sector) - CII Institute of

Quality

Project: Machine Learning Implementation

12    Bidadi    Plant    National Supply Chain & Logistics Excellence Award (Digital Excellence - Auto & Ancillary) -

CII SCALE 12th Edition

13    Bidadi    Plant    National Supply Chain & Logistics Excellence Award (Innovation Category) - CII SCALE 12th Edition

14    Bidadi    Plant    Gold Winner (Renovative Kaizen) - 53rd CII National Kaizen Competition

15    Bidadi    Plant    Platinum Winner (MUDA Category) - 20th CII National 3M Competition

Project: Reuse of oil, coolant & swarf management

16    Bidadi    Plant    Runner-up (Delivery Category) - ACMA SR 17th Regional Kaizen Contest

Project: Delivery improvement in nameplate laser marking

17    Bidadi    Plant    Gold (Renovative Kaizen Category) - CII Challengers Trophy Competition

Project: Bearing flanee leakage reduction

DIRECTORS AND KEY MANAGERIAL PERSONNEL
Directors Retiring by Rotation

In accordance with the provisions of the Companies Act, 2013 and
Articles of Association of the Company, Mr. Stefan Grosch (DIN:
10145827) retires by rotation at the forthcoming Annual General
Meeting and is eligible for re-election.

Changes in the Board and Key Managerial Personnel:

Dr. Pawan Goenka (DIN: 00254502) Independent Director
completed his first (1^st) term of 5 years on the closing hours of May
20, 2026. The Board places on record their deep appreciation of
the valuable contributions made by Dr. Goenka to the growth and
profitability of the Company.

The Board of Directors has, in its meeting held on May 20, 2026,
on the recommendations of the Nomination & Remuneration
Committee and subject to the approval of the Members of the
Company, approved the appointment of Mr. Ramesh Ramadurai
(DIN: 07109252) as an Additional Director and Non- Executive
Independent Director of the Company with effect from May 21,
2026 to May 20, 2031.

Your Directors recommend the appointment of Mr. Ramesh
Ramadurai's proposed resolution to be passed by requisite
majority at the ensuing Annual General Meeting.

Key Managerial Personnel

As on the date of this report, the following persons have been
designated as the Key Managerial Personnel of the Company
pursuant to Section 2 (51) and 203 of the Companies Act, 2013
read with the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014:

(a)    Mr. Guruprasad Mudlapur - Managing Director and Chief
Technology Officer

(b)    Mr. Sandeep Nelamangala - Joint Managing Director

(c)    Ms. Karin Gilges- Chief Financial Officer

(d)    Mr. V. Srinivasan - Company Secretary and Compliance
Officer.

Independent Directors (IDs)

All the independent directors of the Company meet the criteria of
independence as provided under sub-section (6) of Section 149 of

the Companies Act, 2013 and Regulation 16(1)(b) of SEBI(LODR)
Regulations, 2015. Declarations to this effect have been received
from them. The Independent Directors of the Company have
registered themselves with the databank maintained by the Indian
Institute of Corporate Affairs (“IICA”) and are either exempt from
the requirement to undertake online proficiency self-assessment
test or passed the same. The Board is of the opinion that all the
Independent Directors are persons of integrity and possess
relevant expertise and experience (including proficiency).
Familiarization Programme for Independent Directors
The Company familiarizes its Independent Directors with their
roles, rights, responsibilities in the Company, nature of the
industry in which the Company operates, etc., through various
programmes. These sessions are delivered upon induction of a
new Director, as well on an ongoing basis.

Regular presentations are made at the Board Meetings by the
Executive Directors and other Senior Management persons which
gives the Directors an opportunity to interact with the Management
and get an overview of the operations and familiarize them with
matters related to the Company's values and commitments. The
Directors are provided with all information on regular basis to
enable them to have a better understanding of the Company, its
operations, and the industry in which it operates. The Directors are
also made aware of their roles and responsibilities on regular basis.
For details of familiarization programmes of the Independent
Directors and number of hours please refer to the Corporate
Governance Report.

Performance Evaluation of Directors

In line with the provisions of the Act and the Listing Regulations,
the Nomination & Remuneration Committee and the Board
have conducted an annual performance evaluation of its own
performance, Committees, and individual Directors.

For details of the performance evaluation including evaluation
criteria for Independent Directors, please refer to the Corporate
Governance Report.

BOARD MEETINGS

During the year under review, 6 (six)meetings of the Board
of Directors were held. The particulars of the meetings and
attendance thereat are mentioned in the Corporate Governance
Report.

CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE
AND INITIATIVES

As on March 31, 2026, the CSR Committee of Bosch Limited
comprised of 4 members, including Dr. Gopichand Katragadda
(Independent Director) as its Chairperson, Ms. Hema Ravichandar
(Independent Director), Mr. Soumitra Bhattacharya (Non-Executive
Director) and Mr. Guruprasad Mudlapur (Managing Director), as its
members. Details of the CSR Committee meetings and attendance
thereat forms a part of the Corporate Governance Report.

During the year, the CSR Committee not only oversaw the
Company's CSR initiatives and assessed the impact being created
through multiple interventions. Members also visited project
locations and interacted with multiple stakeholders including
beneficiaries, government, academia and NGO representatives to

ensure the social interventions of Bosch Limited are appropriate to
the requirements on ground.

In 2025-26, the CSR initiatives approved by the committee reached
over 390,000 beneficiaries across 22 states, 180+ districts,
and 200+ villages, creating meaningful and measurable impact
across skill development, sustainable mobility, and interventions
undertaken under the umbrella of integrated community
development.

1. Employability and Livelihood Enhancing Skill
Development

Through multiple skill development projects, a total of
22,819 youth were enrolled for training during the year, which
included 8,932 women trainees and to enhance the training
quality on ground, 390 Trainers were identified across India
and undertaken though a rigorous Train the Trainer program
to upskill and improve their training delivery and ensure
better outcome for the trainees.

a.    Bosch’s Response to India’s Development &
Growth through Employability Enhancement
(BRIDGE) - focused on enabling youth with key
employability skills (life skills, soft skills and digital
literacy), enabling their transition into entry-level
roles in the service sector. By combining structured
classroom based interactive and activity driven training
along with on-the-job training, the programme created
meaningful pathways to dignified livelihood for the
beneficiaries of this project. During the reporting
year, 13,065 youth were enrolled for training across
20 states and 2 union territories through 200+ partner
training centres, including a few aspirational districts,
and in partnership with training centers, academic
institutions, and NGOs. The women participation of
this project stood at 47 %, with an overall average of 70
% placement rate and initiatives to build capacity of 152
trainers for enhanced quality of training delivery.

b.    Livelihood Enhancement through Automotive
Skills Development Programme (LEAP) - equips
youth with specialized training in two-wheeler and
four-wheeler service technology, opening pathways to
careers in the automotive sector, with the curriculum
customized and aligned with the requirement of the
industry. In 2025-26, 8,040 youth were enrolled, and
223 Trainers underwent the Train the Trainer (TTT)
intervention, strengthening instructional quality and
effectiveness.

c.    Technical Skills (Carpentry, Home Appliances
and Power Tools), a programme is dedicated to
empowering youth with skills in carpentry, home
appliances service and use of power tools, enabling
them to build dignified and a sustained source of their
livelihood which has a high demand. 1,134 youth were
enrolled, at technical skill centers across multiple
locations and 15 Trainers underwent the Train the
Trainer (TTT ) programme.

d. Economic Empowerment of Women, People with
Disabilities (PWDs) & LGBTQIA+ Community,

is a continued commitment of Bosch Limited, to be
inclusive in its approach on societal development
and advocate for inclusion of women, people with
disabilities (PwD) & LGBTQIA+ community members
into the mainstream. During the year, 75 women were
trained as Electric Vehicle (Auto) Drivers and guided
in obtaining their driving licences, enabling greater
financial independence and access to sustainable
livelihood opportunities. 350 youth with disabilities
and 155 individuals from the LGBTQIA+ community
trained in sector-specific skills delivered in partnership
were with expert partner organisations. This initiative
represents a meaningful and sustained effort towards
adopting an inclusive approach for providing equal
access to skill development and economic opportunity.

2. Sustainable Mobility

The focus on sustainable mobility envisions a comprehensive
and inclusive framework that not only advances
environmental sustainability but also promotes safe road
behaviour, enhances safety, strengthens capacity building,
encourages innovation and research to identify challenges
related to mobility and create solution for the mass. Efforts
are underway through long term interventions, on improving
road safety through identification of black spots on select
highways, designing a model corridor, safe school zone
initiatives and related policy advocacy. In parallel, we are
also advancing sustainable urban mobility through research
and public transport enhancement efforts, academia led
innovation and developing digital solutions for inclusive
and data-driven city mobility planning. In 2025-26, through
varied interventions under this focus, we reached to 37,300+
beneficiaries across multiple locations.

a. Bosch’s Road Safety Awareness and Community
Engagement (BRACE) programme is meant to
foster a culture of responsible road behaviour through
education, engagement, and targeted interventions.
Focused on school children, youth, and communities,
the programme combines learning, engagement,
and safety measures to create safer roads and more
aware citizens. In 2025-26, 23,511 school students
and 197 teachers across 72 schools were sensitised
on road safety. Additionally, 1180 commercial drivers
and 4,059 college students were reached, further
strengthening awareness among key road users. The
initiatives included school audits, safe school zones,
public awareness campaigns, etc. In Nashik, over 5,000
license applicants at the RTO received critical hands-
on road safety experience through simulator training,
enhancing their preparedness before driving. In
Chennai and Gangaikondan, school-based awareness
and safety interventions are being strengthened, while
in Jaipur, programmes extended to colleges and road
safety clubs. These efforts were further supplemented
through installation of 84 CCTVs cameras in Nashik
to enhance road safety and surveillance by the police,
along with highway audits and blackspot rectification
to minimise road accidents, ensure compliance with
safety and environmental standards, and create safer
road environments for all.

b.    Sustainable Urban Transportation focuses on
promoting low-emission, efficient, and inclusive
mobility solutions, with a strong emphasis on public
transport systems. The approach combines capacity
building for mechanics and service providers with
improved access to safe, seamless transport networks,
addressing key urban mobility challenges. Bosch's
efforts include Green Service Camps and awareness
campaigns for roadside mechanics, through which 3,147
mechanics were trained in sustainable vehicle service
practices, encouraging environmentally responsible
automotive practices by mechanics and vehicle drivers.
In parallel, the work on development of city-scale Multi¬
Modal Mobility Demand Modelling (M3DM) continued
with a prominent academic institution, that intents to
support data-driven transport planning and reduce
reliance on personal vehicles and increase efforts on
strengthening public bus systems, by helping improve
ease of local travel and access to efficient public
conveyance, accessibility and efficiency.

c.    Supporting Research & Innovation on topics
related to sustainable mobility, is also one of
Bosch Limited's CSR mandates, to identify challenges
in sustainable and inclusive mobility solutions that
respond meaningfully to real-world needs. By fostering
data-driven approaches and collaborative partnerships
with government, academic, and private research
institutions to improve road connectivity, strengthen
transport planning, and create safer, more accessible
mobility systems. Among the key initiatives underway is
the development of an assistive smart cane for visually
impaired children, aimed at enabling safer and more
independent movement. The projects are supporting
research in inclusive mobility, green transportation,
and alternative fuels through ongoing institutional
collaborations. In parallel, the Safe School Zone
initiative is using research and pilot interventions to
shape scalable, evidence-based solutions that ensure
safer journeys to school for every child.

3. Integrated Community Development (ICD)

Bosch Limited's Integrated Community Development
approach focuses on local level challenges that address
issues related to environment sustainability, conservation
of waterbodies, lack of access to quality education, basic
healthcare and sustained livelihood. The need-based
development approach by Bosch aims at strengthening
community well-being in a sustainable and inclusive manner.

? Water Conservation and Afforestation

a. Lake rejuvenation and maintenance efforts continue
to be carried out in several locations in multiple
locations across 4 states, with a shared intent to
restore ecological balance, strengthen water security,
and revive local ecosystems for communities and
future generations. In the reporting year, Bosch Limited
through its CSR, focused on 7 waterbodies, reinforcing
its commitment to sustained water conservation
efforts. These large-scale initiatives included
maintenance of lakes that were taken up in earlier years
for rejuvenation and are being maintained to preserve

their water-holding capacity, rainwater harvesting
potential, green cover, and biodiversity, eventually to
be handed over to surrounding communities for its
upkeep and maintenance. Other initiative includes
the Ridge-to-Valley Watershed Restoration project,
aimed at improving groundwater recharge and reducing
soil erosion, rejuvenation of Percolation Tank, Pond
and restoration of an Irrigation Tank. All these have
collectively touched over 36,300+ lives, while creating
capacity to conserve over 1.76 billion liters of water over
these years and contributing to healthier ecosystems
and more resilient communities.

b. Afforestation, tree plantation, agroforestry, and social
forestry projects across multiple locations have been
a long-term commitment to ecological restoration and
community prosperity. To date, 3,08,200 trees have
been planted, including over 18,200+ saplings in the
reporting year, alongside the continued maintenance
of over 51,000 trees planted in previous years across
multiple locations. The initiative has benefitted
over 1,10,442 community members in surrounding
areas. Under the Agroforestry initiative 43 farmers
were supported with 6,915 multi-species saplings,
enabling improved income generation over time. It is
estimated to support carbon sequestration, reinforcing
environmental sustainability.

> Promoting Education

a.    Excellence in Education and Learning (EXCEL)

has continued its focus on strengthening foundational
teaching and learning skills and nurturing 21^st-Century
competencies among students in grade 4^th to 8^th through
schoolteachers. Aligned with the National Education
Policy (NEP) 2020 and NIPUN Bharat, it empowers
government schoolteachers to move beyond traditional
instruction towards experiential and project-based
learning, creating classrooms that are more engaging,
participatory, and outcome-driven. In 2025-26, 836
teachers from 227 schools across multiple locations
were trained, directly impacting 25,080 students.

b.    Need based infra support in government
Anganwadis (Early Child Care Centers) and
government schools has enhanced quality of learning
and teaching environment. These interventions are
helping create learning spaces where children feel
supported, engaged, and encouraged to grow, with
access to environments that enable both participation
and confidence. By strengthening both early childhood
care and school education, the initiative is fostering a
supportive and structured ecosystem where children
can learn, grow, and thrive, while also building a
stronger foundation for their long-term development.
These interventions have strengthened the learning and
positively impacted 6135 students and 167 Teachers;
18 Anganwadi teachers were trained, supporting 616
beneficiaries.

c.    Pragya Niketa, has over years been a knowledge centre
and after-school learning initiative empowering high
potential schoolgirls in rural areas of Jaipur, Rajasthan
by strengthening their education and learning level,

enhancing life skills, and leadership development. Since
2014, the programme has grown from 70 to 210 students
in classes 8 to 12, supported in a purpose-built facility
with classrooms, a computer lab, and a playground.
Beyond academics, students are nurtured through self¬
defense training, cyber awareness sessions, leadership
development, and career mentoring, creating pathways
to dignity, aspiration, and self-belief.

?    Access to Basic Healthcare

a.    Mobile Medical Units being operated for the
past 3 years, have ensured access to quality and
preventive healthcare, particularly for underserved
rural communities. In 2025-26, these units were
operating in 4 locations, reaching approximately 66,149
beneficiaries across 105 villages, delivering essential
medical services while also promoting awareness
on preventive healthcare. Alongside service delivery,
frontline healthcare workers were also trained to
strengthen community-level care contributing to healthier,
better-informed communities.

b.    RMNCAH+N (Reproductive, Maternal, Newborn,
Child, Adolescent Health + Nutrition) focus
increased due to findings that anaemia continues to
affect women and adolescent girls across generations
in many communities that Bosch Limited has been
working in. To address this, the RMNCAH+N initiative
was launched in 2025-26, a targeted programme
focused on awareness, early detection, and timely
intervention to avoid consequences of rising anemia
cases, especially in school-going adolescent girls and
women. Reaching 21,736 beneficiaries in its very first
year, the programme delivered screenings, health
camps, and community sensitization initiatives,
strengthening preventive healthcare practices and
improving health outcomes across families and
communities.

c.    Midday Meal project for ensuring children's growth,
health, and ability to learn has been supported
since 2016, by contributing towards the upkeep of a
centralized mid-day meal kitchen at Jigani in Bengaluru,
a facility with the capacity to prepare and deliver 30,000
meals per day to children across government schools,
contributing to improved nutrition, better attendance,
and holistic child development.

?    Community Development Centres, set up by Bosch
Limited as one of its rural community-based support system,
have been serving as as nodal hubs across multiple locations,
driving positive change by facilitating access to government
schemes, raising awareness, and providing hands-on support
to villagers. Across the network of seven centers, it continues
to deepen and sustain the community impact, reaching
approximately 36,900 individuals across 126 villages in 2025¬
26, enabling wider community access and meaningful impact
through linkages with 15 government departments.

?    Rural Livelihood Enhancement project has been
promoting access to sustainable livelihood as fundamental
to long-term empowerment, particularly for women and
marginalized communities in rural areas. These initiatives
are designed as per the specific requirement of each
location, thoughtfully shaped by the needs, strengths,
and opportunities of each community, spanning women's
entrepreneurship, regenerative agriculture, community-
based enterprises, and natural resource-based livelihood
for tribal and rural communities. In 2025-26, the programme
reached 3,997 beneficiaries, including 957 women, with
support extended to 183 Self-Help Groups, strengthening
income generation, community resilience, and creating
pathways to greater financial independence and dignity. This
support was also extended to women affected by domestic
violence, by providing them skills to ensure their economic
empowerment, reflecting our commitment to protecting
women's right to lead a dignified life.

4. Employee Social Engagement

Bosch has not only followed its sustained commitment
through CSR towards the communities outside its business
premises, but has also sustained and promoted employee's
social engagement, reflecting its belief in collective
responsibility by encouraging Boschlers across all levels
to share their time, skills, and expertise in serving the
communities, fostering a deep-rooted culture of empathy
through volunteering and purpose driven approach. In 2025¬
26, 105 volunteering initiatives were organized, reaching over
109,910 beneficiaries, with 3,776 Bosch associates and 947
community volunteers collectively contributing 13,629 hours
of service. Efforts spanned across multiple projects including
but not limited to tree plantation, classroom mural painting,
blood donation drives, awareness sessions on health and
sustainability, and support for orphanages and old age
homes, reflecting meaningful impact and compassionate
community engagement.

To further strengthen participation, the Socio app was launched
during the year, to enable associates to discover and engage with
meaningful volunteering opportunities across Bosch locations in
India. The annual Social Engagement Thank-a-Thon was also held
to recognise and celebrate the employee volunteers' contributions,
reinforcing a culture of appreciation and sustained engagement
and the Kindness Carnival 2025 brought together NGO partners
and 700+ attendees through fundraising, wish-fulfilment, and
community connection, further deepening commitment to close
community level engagement.

Annual Report on Corporate Social Responsibility Activities of the
Company along with Impact assessment of CSR projects (2025¬
26) is enclosed as Annexure 'D' to this Report.

AUDIT COMMITTEE

As on the date of this report, the Audit Committee comprises
Ms. Padmini Khare, Chairperson (Independent Director),
Dr. Pawan Goenka (Independent Director), Ms. Hema Ravichandar
(Independent Director), Dr. Gopichand Katragadda (Independent
Director), Mr. Stefan Grosch (Non-Executive Director) and
Mr. Soumitra Bhattacharya (Non- Executive Director) as its
members.

The Members of the Committee possess accounting and/or
financial management knowledge and expertise. The Company
Secretary of the Company is the Secretary of the Committee.
During the year under review, the Board accepted all the
recommendations of the Audit Committee.

In pursuance of the amended SEBI Listing Regulations effective
from January 01, 2022, members of the audit committee who are
Independent Directors approve the related party transactions.
Details of the roles and responsibilities, particulars of meeting and
attendance thereat are mentioned in the Corporate Governance
Report.

SUBSIDIARY, ASSOCIATE AND JOINT VENTURE COMPANIES

Subsidiary Companies

MICO Trading Private Limited (MTPL)

The summary of financial nos. of MICO Trading Private Limited
(MTPL) for the 2025-26 are given below:

Robert Bosch India Manufacturing & Technology Private
Limited (RBIM)

RBIM was incorporated as a subsidiary of Bosch Limited in 2020,
with the objective of manufacturing automotive products including
automotive and electrical components. The Company is yet to start
commercial activities.

The summary of financial nos. for the 2025-26 is given below:

The Audited Statement of Accounts of RBIM & MTPL can be
accessed on the website of the Company at www.bosch.inunder
the “Shareholder Information” section.

Associate Companies

Newtech Filter India Private Limited (NTFI)

The Company holds 25 % and Robert Bosch Investment Nederland
B.V. holds 75 % of the paid-up share capital of Newtech Filter India
Private Limited.

NTFI is the manufacturer of automotive filters, selling their products
to the Company, which further sells the same to end customers.
The financial performance of NTFI during 2025-26 is as under:

Autozilla Solutions Private Limited (Autozilla)

The Company holds 26 % in Autozilla Solutions Private Ltd., a
Hyderabad based start-up, offering B2B e-commerce solutions for
manufacturers, sellers, and buyers of automobile spare parts, as
part of an initiative to establish effective digital ecosystem around
vehicle workshops.

The financial performance of Autozilla during 2025-26 is as under:

Joint Venture CompanyPreBo Automotive India Private Limited (PreBo)

Prebo Automotive India Private Limited is a Joint Venture Company
in which the Company holds 40 % of the paid-up share capital.
PreBo is in the business of manufacturing/assembly and supply of
mechanical and electromechanical components and assemblies
for automobile and non-automobile industry.

The financial performance of PreBo for 2025-26 is as under:

A separate statement containing the salient features of the financial
statement of the aforementioned Subsidiaries, Associate and Joint
Venture are disclosed under AOC-1 and is enclosed as Annexure ‘I’
to this Report.

DIVESTMENT OF SHARES OF NIVAATA SYSTEMS PRIVATE
LIMITED HELD AS UNQUOTED INVESTMENTS

Bosch Limited had acquired a 6.97 % equity stake in Nivaata
Systems Private Limited for an investment of ' 148 million (with
an actual cash outflow of ' 131 million). The investment was made
with the strategic objective of enabling the Company to create a
data lake based on the data generated from fleets managed by
Nivaata Systems Private Limited, having its office in Bengaluru and
operating under the brand name “Routematic”. The investment
also enabled the Company to access and host “Employee
Transportation Services” data from over 80 corporate customers,
including approximately eight years of historical data, and provided
an opportunity to offer the Company's Parking Solutions to such
customers.

As the intended strategic objectives of the investment have been
achieved and no significant future synergies are expected, the
Board of Directors, at its Meeting held on May 27, 2025, approved
the divestment of the Company's entire 6.97 % stake in Nivaata
Systems Private Limited at a price of ' 16,300 per share (against
an acquisition cost of ' 13,101 per share). The divestment value
of ' 184.12 million was based on the valuation report dated May 7,
2025, and the fairness opinion dated May 15, 2025.

JOINT VENTURE WITH TATA AUTOCOMP SYSTEMS LIMITED
(TACO)

Bosch Limited, a leading supplier of technology and services,
and Tata AutoComp Systems Limited (TACO), India's leading
automotive components conglomerate, announced a joint venture
to unlock growth opportunities in India's e-mobility segment. The
partners propose to hold equal equity participation in the joint
venture, with an aggregate capital contribution of '94 Crores.,
which aims to start its operations by mid-2026, subject to receiving
all regulatory approvals.

The joint venture will focus on engineering, manufacturing and
sales of eAxle systems and electric motors in India. With a registered
office in Pune, this joint venture aims to accelerate the adoption of
sustainable and forward-looking technologies, thereby expanding
the regional footprint for both companies in the e-mobility space.
This partnership enables the Company to bring these advanced
eAxle systems and electric motor solutions to India's growing
e-mobility market, reinstating their ongoing commitment to the
region. Both companies are confident that this collaboration will
provide significant impetus for the e-mobility market in India and
develop innovative solutions for customers.

JOINT VENTURE WITH WHEELS INDIA LIMITED AND
BRAKES INDIA PRIVATE LIMITED

Wheels India Limited (“WIL”) is engaged in the business of
manufacturing and distribution of automotive components,
industrial components, and components for wind turbines
and Brakes India Private Limited is engaged in the business of
manufacturing, sale and supply of brakes of certain descriptions,
and automobile components, spares, accessories and service
tools for the automobile industry. Both companies are a part of
TSF group of companies and are collectively known as (“TSF
Companies”)

Bosch Limited and TSF Companies have recognized the emerging
synergies amongst themselves and their mutual capabilities in
their respective fields and entered into a joint venture arrangement
to form a joint venture company in India, through which the Parties
propose to jointly undertake development and production of
solutions for the commercial vehicle (CV) air system segment and
any other product that joint venture shall decide from time to time.
Both parties have agreed to invest equity share paid-up capital, at
the time of incorporation of the Joint Venture Company, up to '
1,00,000 (Indian Rupees One Lakhs only), as paid by Bosch and the
TSF Companies in the ratio of 50:50. Thereafter, within 60 (sixty)
days from the date of incorporation of the Joint Venture Company,
an ' equivalent of EUR 1,000,000 (Euros One million only) less the
initial subscription of ' 1,00,000 (Indian Rupees One Lakhs only)
shall be infused in the Joint Venture Company by Bosch and the
TSF Companies in the ratio of 50:50.

Based on the future funding requirements, Bosch Limited, WIL
and BIPL will contribute in proportion of their shareholding, at
the discretion of the Board of the Joint Venture Company, as per
requirements of its Business.

VOLUNTARY STRIKE OFF OF ROBERT BOSCH INDIA
MANUFACTURING & TECHNOLOGY PRIVATE LIMITED
(RBIM)

Robert Bosch Manufacturing and Technology Private Limited
(“RBIM”), a wholly owned nonmaterial subsidiary of Bosch Limited,
was incorporated in March 2020 with the objective of serving as
an agile manufacturing platform for automotive products and
electrical components, particularly in emerging and growth areas
such as BS-VI products and mobility solutions.

However, RBIM could not commence commercial or operational
activities since its incorporation and has remained inactive. In view
of the evolving business environment and strategic priorities of the
Company, a review of the operations and business relevance of
RBIM was undertaken. Pursuant to such review, it was concluded
that RBIM no longer serves any strategic or operational purpose
for the Company.

Accordingly, considering the absence of business and operational
activities and as part of the strategic realignment of the Company's
operations, it was decided for the closure of the business of RBIM
through voluntary strike off in accordance with the provisions of
the Companies Act, 2013 read with the Companies (Removal of
Names of Companies from the Register of Companies) Rules, 2016
and other applicable laws.

REMUNERATION POLICY

The Nomination and Remuneration Policy, inter-alia, provides
for criteria and qualifications for appointments of Director, Key
Managerial Personnel and Senior Management, Board diversity,
remuneration to Directors, Key Managerial Personnel, etc.

PARTICULARS OF EMPLOYEES

Your Company had 6,087 employees as of March 31, 2026.
Disclosures pertaining to remuneration of employees and other
details, as required under Section 197(12) of the Act, read with
Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 is enclosed as Annexure “F to
this Report.

Pursuant to Section 197(12) of the Companies Act, 2013 read with
Rules 5(2) & (3) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, a statement showing details
of the top Ten (10) employees in terms of remuneration drawn
during the financial year and employed throughout the year and
top Ten (10) employees employed for part of the year who were in
receipt of remuneration of ' 1.02 Crores or more per annum and '
8.50 Lakhs or more per month respectively is annexed herewith as
“Annexure J ”, which forms part of this report.

RISK MANAGEMENT

The Bosch Group's risk management system is based on ISO
31000 and COSO (ERM) standards. It comprises of systematic
identification and assessment of risks, followed by appropriate
mitigation measures. The process also includes periodical
monitoring and review of risks as well as risk control measures.
The Company additionally complies with listing and disclosure
obligations required by market regulator, The Securities and
Exchange Board of India (SEBI).

Risk Management Committee (RMC) has been entrusted with
overall responsibility of general design and implementation of
risk management policy. The committee (RMC), consisting of
Board Members review the risk inventory, controls, mitigating
measures and makes appropriate recommendations as necessary.
The Corporate Risk Council, consisting of three or more senior
company officials periodically examine the risk inventory and cross
functional risks as well as adequacy of mitigation measures before
submission to Risk Management Committee.

Plan-Do-Check-Act (PDCA) risk management approach facilitates
collaborative participation and engagement across all business
units, enabling common understanding of risks, uniformity
in reporting and continuous improvement in the overall risk
management process.

The Company follows a specific, well-defined risk management
policy, integrated with its operations. The policy has been
developed after taking cognizance of applicable statutory
guidelines, Bosch global policies on risk management and
feedback from stakeholders.

Risk Management Committee:

(a)    monitors and ensures effective implementation of the
Company's Risk Management Systems (RMS).

(b)    monitors and approves the Company's risk policy and
associated practices.

(c)    monitors the effectiveness of the overall risk management
framework.

(d)    reviews the Company's overall risk profile and ensures that
risk-based decisions are within the Company's risk appetite.

(e)    ensures that the Company takes prudent measures to
balance risk and reward in its business decisions.

(f)    periodically report risk movements and trends to the Board,
recommending appropriate actions.

(g)    ensures it meets statutory and regulatory responsibilities.

(h)    ensures a culture of risk is embedded and lived across the
organization.

Subordinate risk management teams, led by the respective
business heads, identify, evaluate and respond to functional,
operational as well as strategic risks in their corresponding area
of responsibility. There are 18 functional risk areas defined in
the risk policy and those risks are evaluated both qualitatively
and quantitively. Each individual risk with an impact on EBIT is
documented in the risk register.

WHISTLE BLOWER POLICY/VIGIL MECHANISM

The Company has a Whistle Blower Policy, which includes
vigil mechanism for dealing with instances of fraud and
mismanagement.

Details of the Whistle Blower Policy have been mentioned in the
Corporate Governance Report. The Whistle Blower Policy has been
uploaded on the website of the Company.

RELATED PARTY TRANSACTIONS

Prior approval of the Audit Committee is obtained for all Related
Party Transactions. The Audit Committee accords omnibus
approval for Related Party Transactions which are in ordinary
course of business, foreseen, repetitive in nature and satisfy
the arm's length principles. The Audit Committee reviews, on
a quarterly basis, the details of the Related Party Transactions
entered pursuant to the omnibus approval.

Additionally, the Company obtains a half yearly certificate from
a Chartered Accountant in Practice confirming that the Related
Party Transactions during the said period were in ordinary course
of business, repetitive in nature and satisfy the arm's length
principles.

The details of Material Related Party Transactions under Section
188(1) of the Act required to be disclosed under Form AOC - 2
pursuant to Section 134(3) of the Act is enclosed as Annexure 'E'
to this Report.

The Company has framed a Policy for determining materiality
of Related Party Transactions and dealing with Related Party
Transactions. During May 2025, the Policy has been revised in line
with regulatory amendments in SEBI Listing Regulations. The said
Policy is hosted on the website of the Company.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS & OUTGO

The report in respect of conservation of energy, technology
absorption, foreign exchange earnings and outgo as required
under Section 134(3) of the Act read with Rule 8 of Companies
(Accounts) Rules, 2014, is enclosed as Annexure 'G' to this Report.

AUDITORS
Statutory Auditor

Pursuant to provisions of Section 139 of the Act read with the
Companies (Audit and Auditors) Rules, 2014, Messrs. S. R. Batliboi
& Associates LLP (member firm of Ernst & Young) (Firm Regn. no.
101049W/E300004), were appointed as Statutory Auditors of the
Company for a term of 5 years, to hold office from the conclusion
of 70^th Annual General Meeting held on August 3, 2022, until the
conclusion of 75th Annual General Meeting to be held in the year
2027.

The Audit Committee annually reviews and monitors the
performance, independence of the Statutory Auditors and
effectiveness of audit process.

The Auditors have issued an unmodified opinion on the Financial
Statements, for the financial year ended March 31, 2026. The said
Auditors' Report(s) for the financial year ended March 31,2026, on
the financial statements of the Company forms part of this Annual
Report.

Cost Audit & Cost Auditors

The Board of Directors, on recommendation of the Audit
Committee, re-appointed Messrs., Kamalakara & Co., Cost
Accountants, Bengaluru (Registration No. FRN 000296) as Cost
Auditors to audit the following cost records of the Company for the
Financial Year 2026-27 in terms of the provisions of Section 148 of
the Companies Act, 2013.

In terms of the requirements of the said section, the members
are required to ratify remuneration payable to the Cost Auditors.
Accordingly, resolution ratifying the remuneration payable to
Messrs. Kamalakara & Co., will form part of the Notice convening
of the 74^th Annual General Meeting.

As per Section 148 (1) of the Companies Act, 2013, the Company is
required to maintain Cost Records. Accordingly, Cost Records and
Cost Accounts are duly maintained by the Company.

Secretarial Auditor

Pursuant to the provisions of Section 204 and other applicable
provisions of the Companies Act, 2013, if any, read with Rule 9 of
the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 and Regulation 24A of the Securities and
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, (including any statutory
modifications (s) or re-enactment thereof for the time being in
force), the Company had appointed CS Parameshwar Ganapati
Bhat, Practising Company Secretary (FCS-8860, COP-11004 and
Peer Review Certificate No. 5508/2024) as the Secretarial Auditor
of the Company to conduct the Secretarial Audit of the Company
for a term of five(5) consecutive years commencing from April 1,
2025 to March 31, 2030. The Report of the Secretarial Auditor is
enclosed as Annexure 'A' with this Report. The Auditor has issued
a report without any observations, for the financial year ended
March 31,2026.

REPORTING OF FRAUD

During the year under review, the Statutory Auditors, Cost Auditors
and Secretarial Auditor have not reported any instances of fraud
committed in the Company by its Officers or Employees to the
Audit Committee under Section 143 (12) of the Act.

DIRECTORS’ RESPONSIBILITY STATEMENT

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

i.    in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper
explanation relating to material departures.

ii.    they have selected and consistently applied accounting
policies and have made judgements and estimates that are
reasonable and prudent to give a true and fair view of the
state of affairs of the Company at the end of the financial year
and the profit of the Company for that period.

iii.    proper and sufficient care has been taken for maintenance
of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities.

iv.    the annual accounts have been prepared on a 'going concern'
basis.

v.    proper internal financial controls are in place and that such
controls are adequate and are operating effectively; and

vi.    proper systems to ensure compliance with the provisions of
all applicable laws were in place and that such systems were
adequate and operating effectively.

DETAILS OF LOANS, ADVANCES, GUARANTEES OR
INVESTMENTS

Particulars of loans given, investments made, guarantee given, or
security provided and the purpose for which the loan or guarantee
or security is proposed to be utilized by the recipient of the loan
or guarantee, or security are provided in Notes to the Financial
Statements.

Internal Complaints Committee (ICC) is in place to redress
complaints received regarding sexual harassment. The Company
is committed to provide protection against sexual harassment of
women at workplace (including employee or any other women
visiting worksite for any other purpose).

1.    Number of complaints of sexual harassment received in the
financial year (April 1, 2025, to March 31, 2026): 5

2.    Number of complaints disposed off during the financial year-.
5

3.    Number of cases pending for more than 90 days- Nil

4.    Number of workshops or awareness programmes conducted
in connection with sexual harassment- 5 exclusive in person
sessions. Additionally, every employee goes through a
mandatory Web Based Training (WBT) -96 % is the completion
rate as of March 31,2026.

5.    Remedial measures taken by the Company-

•    POSH Annual Conclave through which all IC members
underwent training included group discussion, case
studies and benchmark practices presentation and
discussion.

•    Quarterly Meetings of IC - Some of the Topics covered
Case scenarios & Case laws, Handling post inquiry
situation when allegations are not proved, Post Inquiry
preventive recommendations, Investigation techniques,
scenario-based group exercise.

•    Campaign through mailers, Awareness sessions for
contract and temporary employees is continued.

•    Refreshers for Blue collar associates.

•    Inclusion of POSH topic in induction for Trainees and
temporaries.

•    All location committees are registered in “She box”
portal - initiated by Central Government.

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

In terms of the requirements of Regulation 34 (2) (f) of the SEBI
Listing Regulations, a report on Business Responsibility and
Sustainability Report on the environmental, social and governance
disclosures in the format and assurance of the Business
Responsibility and Sustainability Report Core forms a part of this
Annual Report as Annexure 'C' to this Report. The BRSR Core
disclosures have been independently assured by an external
agency, Messrs. S. R. Batliboi & Associates LLP (member firm of
Ernst & Young) (Firm Regn. no. 101049W/E300004).

CORPORATE GOVERNANCE

A report on Corporate Governance in terms of the requirements
of the Listing Regulations and a certificate from the Practicing
Company Secretary, forms part of this Annual Report as Annexure
“B' to this Report.

SECRETARIAL STANDARDS

The applicable Secretarial Standards i.e., SS - 1 and SS - 2, relating
to “Meeting of the Board of Directors” and “General Meetings”,
respectively, have been duly complied by the Company.

GENERAL DISCLOSURE

Your Directors state that no disclosure or reporting is required
in respect of the following items as there were no transactions/
events on these items during the year under review¬

i. Issue of Equity Shares with differential rights as to Dividend,
voting or otherwise.

ii.    Issue of Shares (including Sweat Equity Shares) to employees
of the Company under any scheme.

iii.    Significant or material orders passed by the Regulators or
Courts or Tribunals which impact the going concern status
and the Company's operations in future.

iv.    Voting rights which are not directly exercised by the employees
in respect of Shares for the subscription/ purchase of which
loan was given by the Company (as there is no scheme
pursuant to which such persons can beneficially hold shares
as envisaged under Section 67 (3) (c) of the Act).

v.    Difference between amount of valuation done at the time of
one-time settlement and the valuation done while taking loan
from the Banks or Financial Institutions.

vi.    Application made or any proceeding pending under the
Insolvency and Bankruptcy Code, 2016.

vii.    Revision of financial statements and Directors' Report of your
Company.

FOREIGN EXCHANGE MANAGEMENT (NON-DEBT
INSTRUMENTS) RULES, 2019

The Company has not made any investments under Foreign
Exchange Management (Non-Debt Instruments) Rules, 2019.

CODE FOR PREVENTION OF INSIDER TRADING

Your Company has adopted a Code of Conduct (“Code”) to
regulate, monitor and report trading in Company's shares by
Company's designated persons and their immediate relatives as
per the requirements under the Securities and Exchange Board
of India (Prohibition of Insider Trading) Regulations, 2015. The
Code, inter alia, lays down the procedures to be followed by
designated persons, while trading/ dealing in Company’s shares
and sharing Unpublished Price Sensitive Information (“UPSI”). The
Code covers Company's obligation to maintain a digital database,
mechanism for prevention of insider trading and handling of UPSI,
and the process to familiarize with the sensitivity of UPSI. Further,
it also includes code of Practices and procedures for fair disclosure
of unpublished price sensitive information which has been made
available on your Company's website.

MATERNITY BENEFIT PROVIDED BY THE COMPANY UNDER
MATERNITY BENEFIT ACT, 1961

The Company is in full compliance with the provisions of the
Maternity Benefit Act, 1961. This includes adherence to all
applicable statutory requirements such as maternity leave,
medical bonus, nursing breaks, and creche facilities, wherever
applicable.

ACKNOWLEDGEMENTS

The Directors express their gratitude to the Government of India
and State Governments of Karnataka, Maharashtra, Rajasthan,
and Tamil Nadu for their continued cooperation extended to
the Company. The Directors also thank all customers, dealers,
suppliers, banks, members, and business partners for the
excellent support received from them. The Directors would also
like to acknowledge the exceptional contribution and commitment
of the employees of the Company during the year under review.

CAUTIONARY STATEMENT

Statements in the Board’s Report and the Management Discussion
& Analysis describing the Company’s objective, expectations or
forecasts may be forward looking within the meaning of applicable
laws and regulations. Actual results may differ materially from
those expressed in the statement.

For and on behalf of the Board of Directors

Guruprasad Mudlapur    Sandeep Nelamangala

DIN: 07598798    DIN: 08264554

Managing Director &    Joint Managing Director

Chief Technology Officer
Place: Bengaluru
Date: May 20, 2026