The Board of Directors are pleased to present the Company's Forty Second Annual Report (third Integrated Annual Report)and the Company's audited financial statements (standalone and consolidated) for the financial year ended March 31,2026.
FINANCIAL PERFORMANCE
The Company's financial performance (standalone) for the year ended March 31, 2026, is summarised below:
Particulars
2025-26
2024-25
Total Income
2,05,314.93
1,49,734.59
Profit before Finance Costs, Depreciation, Amortisation and Tax
60,340.90
34,280.75
Finance costs
2,394.54
829.59
Profit before Depreciation, Amortisation and Tax
57,946.36
33,451.16
Less: Depreciation & Amortisation
9,173.05
6,554.19
Profit before exceptional items and tax
48,773.31
26,896.97
Exceptional item
-
7,640.36
Profit before tax
34,537.33
Less: Current tax
12,888.35
7365.30
Deferred tax
(425.54)
1229.49
Profit after Tax
36,310.50
25,942.54
Add / (Less): Other comprehensive income
35.16
(21.19)
Total comprehensive income for the year
36,345.66
25,921.35
For the financial year ended March 31,2026, the Companyreported a Total Income of ' 2,05,314.93 lakhs as against' 1,49,734.59 lakhs in the previous year.
For the year ended on March 31, 2026, the Companyreported Earnings Before Interest, Finance Cost,Depreciation and Amortisation and Tax (EBIDTA) of' 60,340.90 lakhs, as against EBIDTA of ' 34,280.75 lakhsduring the previous year.
The Net Profit of the Company for the year ended March31,2026 was ' 36,310.50 lakhs compared to ' 25,942.54lakhs during the previous year.
BUSINESS REVIEW
During the year under review, your Company has madesignificant strides in creating a strong base for the future.The Company's CMS business showed robust growth onthe back of the commercial molecules even as the seedsfor long-term growth were laid through new projects. Themomentum in the business is seen in the decision to moveto a new R&D facility ensuring attractiveness to the fullrange of potential clients. The other key capital expenditureproject driving long-term growth is the Peptides block
where progress is being made in accordance with the plan.While the GDS business has seen a dip this year due tothe performance of a few key products, the Company hasundertaken actions to make the business a reliable sourceof sustainable long-term growth. The planned strengtheningof the Project Management function has given the Companybetter visibility on planning and execution of CMS projects.During the course of the year, the Company has put intoeffect its plan to create a better structure for accountabilityas well as creating management bandwidth for crucial long¬term planning.
During FY 2025-26, the Company further strengthenedits commitment to robust governance, sustainability andenvironmental stewardship through continued focus onEnterprise Risk Management (ERM) and the Environmental,Social and Governance (ESG) agenda under the oversight ofthe Risk and Sustainability Committee of the Board. Duringthe year, the Company sharpened its ESG governance andexecution through structured reviews and cross-functionalownership of key initiatives, including progress on climate-related disclosures and resilience planning. The Companyalso continued to improve its performance as assessed byexternal sustainability rating agencies. In parallel, capability
building remained aligned to strategic priorities andanticipated business needs, with increasing emphasis onstrengthening people capabilities, deepening the leadershipand talent pipeline, and building organisational capacity forlong-term growth.
DIVIDEND
Your directors are pleased to recommend a final dividendof ' 34/- (340%) per equity share of face value of ' 10/-each of the Company, for the financial year ended March31,2026. The final dividend, if approved at the 42nd AnnualGeneral Meeting, will be paid to members within the periodstipulated under the Companies Act, 2013 ('the Act'), asamended from time to time. The outflow on account of finaldividend is estimated to be ' 4,362.16 lakhs.
In terms of Regulation 43A of the Securities and ExchangeBoard of India (Listing Obligations and DisclosureRequirements) Regulations, 2015 (SEBI Listing Regulations),the dividend distribution policy, is available on theCompany's website at -https://www.neulandlabs.com/sites/neulandlabs/files/neuland-labs/Investors/corporate-governance/policies-and-documents/dividend-distribution-policy.pdf
SHARE CAPITAL
The equity shares of your Company continue to be listedand traded on the BSE Limited and National Stock Exchangeof India Limited. The paid-up equity share capital of theCompany as on March 31, 2026 was ' 1,290.05 lakhs.During the year under review, the Company has not issuedany shares with differential voting rights nor granted stockoptions nor sweat equity.
OUTLOOK
The Company is continuing to evolve at a sustainable paceto ensure long-term growth and deliver through executionof the significant business that has been built over theyears. Even as the current environment seems uncertain, theCompany's planning and execution should ensure that thelong-term objectives are met consistently even as neweravenues are explored. The Company is actively working onplans to broaden the customer base by engaging with BigPharma, based on the investment in enhanced capabilities.With a sharper focus on quality, reliability, sustainability andexecution excellence across the value chain, the Companyaims to create long-term value for all stakeholders and
strengthen its position as a preferred partner enabling ahealthier world.
CONSOLIDATED FINANCIAL STATEMENTS
The Audited Consolidated Financial Statements of yourCompany as on March 31, 2026, which forms part of theIntegrated Annual Report, have been prepared pursuant tothe provisions of the SEBI Listing Regulations as amendedfrom time to time, and also in accordance with the applicableIndian Accounting Standard (IndAS) on ConsolidatedFinancial Statements (IndAS-110) as notified by the Ministryof Corporate Affairs.
The annual accounts of the subsidiary companies are keptfor inspection by any member at the Registered Office of theCompany as well as at the Registered Office of the respectivesubsidiary companies and also available on the website ofthe Company, https://www.neulandlabs.com/en/investors/financials-and-reports/subsidiary-financials. Any memberinterested in a copy of the accounts of the subsidiaries maywrite to the Company Secretary at the Registered Office ofthe Company.
SUBSIDIARIES
Your Company has two subsidiaries, Neuland LaboratoriesK.K., Japan, and Neuland Laboratories Inc., USA, working onmarket development. Your Company does not have any jointventure or associate companies. Further, there has been nomaterial change in the nature of business of the subsidiaries.
A report on the performance and financial position of thesubsidiaries, set out in the prescribed form AOC-1, in termsof the proviso to sub-section (3) of Section 129 of the Act,as amended from time to time, is provided as Annexureto the consolidated financial statements and hence notrepeated here.
CORPORATE GOVERNANCE REPORT,MANAGEMENT DISCUSSION & ANALYSIS ANDOTHER INFORMATION REQUIRED UNDER THECOMPANIES ACT, 2013 AND SEBI LISTINGREGULATIONS
As per the Act and the SEBI Listing Regulations, as amendedfrom time to time, Corporate Governance Report andManagement Discussion and Analysis report are attachedand forms part of this report.
DIRECTORS AND KEY MANAGERIAL PERSONNELAppointments
During the year, the members of the Company vide theirPostal Ballot resolution dated September 26, 2025, approvedthe appointment of Dr. Ravi Gopinath as IndependentDirector of the Company, with effect from August 1, 2025.The Board opined that the above Independent Directorpossessed requisite experience and expertise (including theproficiency). Further, the Board at its meeting held on May12, 2026, based on the recommendation of the Nominationand Remuneration Committee, approved the appointmentof Dr. Mauricio Futran (DIN: 11699767) as an AdditionalDirector of the Company in the category of Non-ExecutiveNon-Independent Director, with effect from May 12, 2026,subject to approval of the Members at the ensuing AnnualGeneral Meeting.
Cessation
Dr. Christopher M Cimarusti, Non-Executive Non¬Independent Director (DIN: 02872948), ceased to be aDirector of the Company with effect from February 28,2026, on account of his sad demise.
The Board places on record its profound sorrow on thedemise of Dr. Christopher M Cimarusti, who servedthe Company with distinction as a Non-Executive Non¬Independent Director since 2009 and as a member of itsScientific Advisory Board. The Board, management, and theemployees, especially those in the Research & Development,deeply valued his outstanding scientific leadership, insight,mentorship, and unwavering commitment to innovation.Dr. Cimarusti's contributions to advancing the Company'sscientific capabilities and strengthening its culture ofresearch excellence have left an enduring legacy that willcontinue to inspire the organization.
Appointment of Directors
The Board of Directors on the recommendation of theNomination and Remuneration Committee, have approvedthe following, subject to the approval of the members soughtin the Notice of the Forty-Second Annual General Meeting:
• Appointment of Dr. Mauricio Futran (DIN: 11699767)as a Director of the Company, categorized as Non¬Executive Non-Independent Director.
Retirement by Rotation
Pursuant to the provisions of Section 152(6)(d) of the Actread with the Companies (Appointment and Qualification ofDirectors) Rules, 2014, and the Articles of Association of the
Company, Dr. Davuluri Rama Mohan Rao (DIN: 00107737)will retire by rotation at the ensuing Annual General Meetingand, being eligible, has offered himself for re-appointment.The Board recommends his re-appointment in the ensuingAGM of the Company.
Change in designation of Whole-time Directors
During the year, the members of the Company vide PostalBallot resolutions dated November 5, 2025, approvedthe a) re-designation of Mr. Davuluri Sucheth Rao (DIN:00108880) as Executive Vice Chairman; and 2) re¬designation of Mr. Davuluri Saharsh Rao (DIN: 02753145)as Chief Executive Officer & Managing Director, effectivefrom April 1, 2026.
Changes in Key Managerial Personnel (KMP)
During the year under review, there were no changes to theKey Managerial Personnel of the Company. As on the date ofthis report, the Company has the following Key ManagerialPersonnel as per Sections 2(51) and 203 of the Act:
Sl.
No.
Name of KMP
Designation
1
Dr.Davuluri Rama Mohan Rao
Executive Chairman
2
Mr. Davuluri Sucheth Rao
Executive ViceChairman
3
Mr. Davuluri Saharsh Rao
Chief ExecutiveOfficer & ManagingDirector
4
Mr. Abhijit Majumdar
Chief Financial Officer
5
Ms. Sarada Bhamidipati
Company Secretary &Compliance Officer
Listing at Stock Exchanges
The equity shares of your Company continue to be listedand traded on the BSE Limited and National Stock Exchangeof India Limited. The Annual Listing fee for the year 2026-27has been paid to both the stock exchanges.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) of the Companies Act, 2013,as amended from time to time, your directors confirm thatto the best of their knowledge and belief and according tothe information and explanation obtained by them:
a. in the preparation of the annual financial statementsfor the year ended March 31, 2026, the applicableaccounting standards have been followed, along withproper explanation relating to material departures,if any;
b. such accounting policies as mentioned in the Notesto the Financial Statements have been selected andapplied consistently and judgements and estimateshave been made that are reasonable and prudent soas to give a true and fair view of the state of affairs ofthe Company as at March 31, 2026 and of the profitof the Company for the year ended on that date;
c. proper and sufficient care has been taken for themaintenance of adequate accounting records inaccordance with the provisions of the Companies Act,2013, as amended from time to time, for safeguardingthe assets of the Company and for preventing anddetecting fraud and other irregularities;
d. the annual financial statements have been prepared ona going concern basis;
e. proper internal financial controls were in place andthat the financial controls were adequate and wereoperating effectively; and
f. systems to ensure compliance with the provisions of allapplicable laws were in place and were adequate andoperating effectively.
BOARD MEETINGS
During the year under review, nine Board Meetings wereconvened and held, the details of which are given in theCorporate Governance Report, which forms part of thisreport. The intervening gap between the meetings waswithin the period prescribed under the Act, and the SEBIListing Regulations, as amended from time to time.
COMPOSITION OF VARIOUS COMMITTEES
Details of various committees constituted by the Board asper the provisions of the Act and the SEBI Listing Regulations,as amended from time to time, and their meetings are givenin the Corporate Governance Report, which forms part ofthis report.
BOARD EVALUATION
Pursuant to the provisions of the Act and SEBI ListingRegulations, the annual evaluation of the performance ofthe Board, its Committees and of individual directors has
been carried out by the Board. The process was carried outby circulating questionnaires on the Board and Committeesfunctioning on certain parameters. The performanceevaluation of the Independent Directors was carried out bythe entire Board, except for the director being evaluated.The performance evaluation of the non-IndependentDirectors, including Executive Directors, was carried out bythe Independent Directors.
INDEPENDENT DIRECTORS
The Independent Directors met on February 10, 2026,without the presence of non-Independent Directors andmembers of the management. The Independent Directors,inter alia, discussed matters pertaining to the Company'saffairs and reviewed the performance of non-IndependentDirectors, the Chairman and the Board as a whole, andassessed the quality, quantity and timeliness of flow ofinformation between the Company management and theBoard that is necessary for the Board to effectively andreasonably perform their duties.
The Company has received declarations from all theIndependent Directors of the Company confirming that theymeet the criteria of independence prescribed under the Actand the SEBI Listing Regulations, as amended from time totime. All the Independent Directors are registered with theIndependent Director's databank and requisite disclosureshave been received from them in this regard. Further,they have affirmed compliance with the code of conductfor Independent Directors as prescribed in Schedule IVof the Act. The terms and conditions of appointmentof Independent Directors is available on the website ofthe Company.
DISCLOSURES BY DIRECTORS
None of the directors of your Company is disqualified as perthe provisions of Section 164(2) of the Act. Your directorshave made necessary disclosures to this effect as requiredunder the Act.
AUDIT COMMITTEE
During the year under review, four Audit Committee Meetingswere convened and held. The details of the committeemeetings and composition of the Audit Committee, and itsterms of reference are included in the Report on Corporate
Governance annexed. All the recommendations made by theAudit Committee were accepted by the Board of Directors.
NOMINATION AND REMUNERATION COMMITTEE
The Nomination and Remuneration Policy of the Companyincludes Board Diversity as part of the policy and isavailable on the website of the Company athttps://www.neulandlabs.com/sites/neulandlabs/files/neuland-labs/Investors/corporate-governance/policies-and-documents/NominationandRemuerationPolicy22042025.pdf. Thepolicy covers selection and appointment of Directors,Key Managerial Personnel, Senior Management andtheir remuneration, including criteria for determiningqualifications, positive attributes, independence of adirector and other matters provided under Section 178(3)of the Act and the SEBI Listing Regulations.
CORPORATE SOCIAL RESPONSIBILITY
The Company has in place a Corporate Social ResponsibilityPolicy which is available on the website of the Companyathttps://www.neulandlabs.com/sites/neulandlabs/files/neuland-labs/Investors/corporate-governance/policies-and-documents/corporate-social-responsibility-csr-policy.pdf. The CSR expenditure of the Company for FY 2025-26as per Section 135 of the Act and the Companies (CorporateSocial Responsibility Policy) Rules 2014, as amended fromtime to time, was ' 608.99 lakhs. After setting-off ' 33.52lakhs from the excess CSR expenditure spent for FY 2024¬25 the Company's total CSR obligation for FY 2025-26 was' 575.47 lakhs.
The Company has spent an amount of ' 561.64 lakhstowards CSR projects and administrative overheads forFY 2025-26. In addition, an amount of ' 13.83 lakhs wastransferred to the Unspent account, in April 2026, towardsidentified and ongoing CSR projects for FY 2025-26, duefor completion in FY 2026-27.
The total CSR expenditure for FY 2025-26 was ' 608.99lakhs, which includes CSR projects spend, administrativeexpenditure, and amount transferred to the UnspentCSR account.
The annual report on CSR activities, as required under Rule8 of the Companies (Corporate Social Responsibility Policy)Rules, 2014 read with Section 134(3) and 135(2) of the Act,has been appended as Annexure-1 and forms an integralpart of this Report.
INTEGRATED REPORT
The Company continues its integrated reporting journeyin the current financial year. This is the third year of thepublication of the Integrated Annual Report of the Companyin line with the Integrated Reporting Framework, now partof the IFRS Foundation.
The Global Reporting Initiative disclosures reported in thisIntegrated Annual Report have been subject to limitedassurance. The Assurance Report issued by BDO IndiaServices Private Limited has been annexed to this IntegratedAnnual Report.
The Integrated Annual Report consists of both financialand non-financial information to demonstrate how various'capitals' are utilised to create value, thereby enablingstakeholders to make informed decisions and gain acomprehensive understanding of the Company's long-termperspective and value creation for all stakeholders.
The Board acknowledges its responsibility for the integrityof the report and the information contained therein.
BUSINESS RESPONSIBILITY AND SUSTAINABILITYREPORT
In accordance with Regulation 34(2)(f) of the SEBI ListingRegulations, the Business Responsibility and SustainabilityReport (BRSR), forms part of this report as Annexure-2.
CODE OF CONDUCT FOR BOARD OF DIRECTORSAND SENIOR MANAGEMENT PERSONNEL
The directors and members of senior management haveaffirmed compliance with the Code of Conduct for Boardof Directors and Senior Management Personnel of theCompany. A declaration to this effect by the Chief ExecutiveOfficer & Managing Director, forms part of this Report.
VIGIL MECHANISM/ WHISTLE BLOWER POLICY
Your Company has a Vigil Mechanism/Whistle Blower Policywhich serves as a mechanism for its directors, employeesand stakeholders to report genuine concerns aboutunethical behaviour, actual or suspected fraud or violationof the Code of Conduct without fear of reprisal. AuditCommittee of the Company oversees the implementationof the Whistle Blower Policy. During the year, the Companyhas not received any protected disclosures. The WhistleBlower Policy is available on the website of the Company,athttps://www.neulandlabs.com/en/investors/corporate-governance/policies-and-documents. A brief note on theWhistle Blower Policy is also provided in the Report onCorporate Governance, which forms part of this Report.
PROHIBITION OF INSIDER TRADING
Pursuant to the Securities and Exchange Board of India(Prohibition of Insider Trading) Regulations, 2015, asamended, the Company has adopted the Code of InternalProcedures and Conduct for Regulating, Monitoring andReporting of Trading by Designated Persons and theirImmediate Relatives along with the Code of Fair Disclosures.Periodically, insider trading awareness sessions areconducted for the benefit of designated persons. Tradingwindow closures, when the designated persons are notpermitted to trade in the securities of the Company, areintimated in advance to all concerned.
DISCLOSURE AS PER SEXUAL HARASSMENTOF WOMEN AT WORKPLACE (PREVENTION,PROHIBITION AND REDRESSAL) ACT, 2013
The Company is committed to ensure that there is no scopefor sexual harassment at the workplace and has adopteda policy on prevention, prohibition and redressal of sexualharassment at the workplace in line with the provisions ofthe Sexual Harassment of Women at Workplace (Prevention,Prohibition and Redressal) Act, 2013 and the rules framedthereunder. The Company has not received any complaintson sexual harassment during the year under review and ason the date of this report.
EMPLOYEE STOCK OPTION SCHEME
As on March 31,2026, there are no employee stock optionsavailable in the Company, and hence, no disclosures arerequired to be made under Regulation 14 of the Securitiesand Exchange Board of India (Share Based EmployeeBenefits and Sweat Equity) Regulations, 2021.
STATUTORY AUDITORS
M/s. M S K A & Associates LLP (Formerly known as M S K A& Associates), (Firm Registration No: 105047W/W101187),Chartered Accountants, were re-appointed as the StatutoryAuditors of the Company at the 40th AGM of the Companyheld on July 31, 2024, to hold the office till the conclusionof the 45th AGM to be held in the year 2029.
AUDITORS' REPORT
There are no qualifications, reservations or adverse remarksmade by M/s. M S K A & Associates LLP (Formerly known asM S K A & Associates), Statutory Auditors, in their report forthe financial year ended March 31,2026.
Pursuant to the provisions of Section 143(12) of the Act,the Statutory Auditors have not reported any incident offraud to the Audit Committee during the year under review.
SECRETARIAL AUDIT
M/s. P.S. Rao & Associates, a firm of Company Secretariesin Practice, were appointed as the Secretarial Auditors ofthe Company at the 41st AGM of the Company held on July30, 2025, for a term of five consecutive financial yearscommencing from April 1, 2025, till March 31,2030.
The report of the Secretarial Audit for the financial yearended March 31, 2026, is annexed to the CorporateGovernance Report and forms part of this report. There areno qualifications, reservations or adverse remarks made bythe Secretarial Auditor in their report.
COST AUDITORS
In terms of Section 148(1) of the Act, read with the relevantRules made thereunder, the Company maintains the costrecords in respect of its pharmaceuticals business.
Pursuant to Section 148 of the Act read with the Companies(Cost Records and Audit) Amendment Rules, 2014, asamended from time to time, subject to the approval of theCentral Government, if required, the Audit Committee hasrecommended, and the Board of Directors has appointedM/s. Nageswara Rao & Co. (Registration No. 000332), CostAccountants, Hyderabad, being eligible and having soughtre-appointment, as Cost Auditors of the Company, to carryout the cost audit of the products manufactured by theCompany during the FY 2026-27.
REPORTING OF FRAUD
During the year, the Statutory Auditors, Cost Auditorsand Secretarial Auditors have not reported any instancesof frauds committed in the Company by its officers andemployees under Section 143(12) of the Act, details ofwhich need to be mentioned in this Report.
INSURANCE
Your Company has taken necessary steps to mitigaterisks and obtained appropriate insurances, and the Boardis kept appraised of the risk assessment and minimisationprocedures. The assets of the Company have beenadequately covered under insurance. The policy valueshave been determined taking into consideration the valueof the assets of the Company.
MATERIAL CHANGES
There have been no material changes and commitmentsaffecting the financial position of the Company betweenthe end of the financial year of the Company to whichthe financial statements relate and the date of the report.Further, it is hereby confirmed that there has been nochange in the nature of business of the Company.
ENERGY CONSERVATION, TECHNOLOGYABSORPTION AND FOREIGN EXCHANGE EARNINGSAND OUTGO
The information on conservation of energy, technologyabsorption and foreign exchange earnings and outgostipulated under Section 134(3)(m) of the Act read with Rule8 of the Companies (Accounts) Rules, 2014, as amendedfrom time to time, is annexed herewith as Annexure-3.
ANNUAL RETURN
Pursuant to Section 92 and Section 134 of the Act, the AnnualReturn as on March 31, 2026, in form MGT-7 is availableon the website of the Company at www.neulandlabs.com.
PARTICULARS OF EMPLOYEES AND RELATEDDISCLOSURES
The information relating to remuneration and other detailsas required pursuant to Section 197 of the Act read with
Rule 5(1) of the Companies (Appointment and Remunerationof Managerial Personnel) Rules, 2014, as amended, isprovided as Annexure-4 to this report.
In terms of the provisions of Section 197 of the Act readwith Rules 5(2) and 5(3) of the Companies (Appointmentand Remuneration of Managerial Personnel) Rules, 2014,as amended, a statement showing the names and otherparticulars of the employees drawing remuneration inexcess of the limits set out in the said rules is provided inthe Annual Report, which forms part of this Report.
Pursuant to the provisions of the first proviso to Section136(1) of the Act, the Annual Report is being sent to themembers and other persons entitled thereto, excludingthe information in respect of employees of the Companycontaining the particulars as specified in Rule 5(2) of thesaid Rules. The said information is available for inspectionon all working days, during business hours, at the RegisteredOffice of the Company up to the date of the ensuing AnnualGeneral Meeting. Any member interested in obtaining suchinformation may write to the Company Secretary, and thesame will be furnished on request.
RELATED PARTY TRANSACTIONS
All contracts/arrangements/transactions with the relatedparties during the financial year were in the ordinary courseof business and at an arm's length basis.
During the year, the Company has not entered into anycontract or arrangement with related parties which couldbe considered material in accordance with the policy ofthe Company on materiality of related party transactions.Further, there were no materially significant related partytransactions which could have potential conflict withinterest of the Company at large.
The Policy on Materiality of Related Party Transactions andon dealing with Related Party Transactions as approvedby the Board may be accessed on the Company's websiteathttps://www.neulandlabs.com/en/investors/corporate-governance/policies-and-documents.
The particulars of transactions with related parties in theprescribed format is annexed to this report, as Annexure-5.Members may refer to Note No. 38 to the standalonefinancial statements which sets out related party disclosurespursuant to Ind AS.
PARTICULARS OF LOANS, GUARANTEES ANDINVESTMENTS
During the year, the Company has not given any loansand guarantees under Section 186 of the Act, and theinvestments made by the Company are in compliance withthe provisions of Section 186 of the Act.
DEPOSITS FROM PUBLIC
The Company has not accepted any deposits from thepublic and, as such, no amount of principal or interest ondeposits from the public was outstanding as on the date ofthe Balance Sheet.
SIGNIFICANT AND MATERIAL ORDERS PASSED BYTHE REGULATORS OR COURTS
There are no significant and material orders passed by theRegulators/Courts which would impact the going concernstatus of the Company and its future operations.
TRANSFER TO RESERVES
No amount was proposed to be transferred to the generalreserve during the FY 2025-26.
RISK MANAGEMENT
The Risk & Sustainability Committee of the Board overseesthe Company's processes for determining risk tolerance andreviews management's actions and comparison of overallrisk tolerance to established levels. The Company has inplace a Risk Management Policy, which outlines the riskmanagement process and framework for the identificationand management of risks. The framework is designedto enable risks, to be identified, assessed and mitigatedappropriately. There are no risks which in the opinion ofthe Board, threaten the existence of the Company. Majorrisks identified by the businesses and functions aresystematically addressed through appropriate actionson a continuous basis. For details, please refer to theManagement Discussion and Analysis report which formspart of this Report.
INTERNAL FINANCIAL CONTROLS
Internal Financial Controls are an integral part of the riskmanagement process, addressing financial and financialreporting risks. The internal financial controls have beenembedded and documented in the business processes.The controls in place include essential components ofinternal financial controls required under the Act, and alsothe internal financial controls over financial reporting asper the Guidance Note on Audit of Internal Controls overFinancial Reporting as issued by the Institute of CharteredAccountants of India.
Assurance on the effectiveness of internal financial controlsis obtained through management reviews, continuousmonitoring by functional owners, as well as testing of theinternal financial control systems by the internal auditorsduring the course of their audits. We believe that thesesystems provide reasonable assurance that our internalfinancial controls are designed effectively and are operatingas intended.
The Company has in place adequate internal financialcontrols with reference to the financial statements. Duringthe year under review such controls were tested and noreportable material weakness in the design or operationwere observed.
HUMAN RESOURCES & INDUSTRIAL RELATIONS
Your Company's relations with its employees continue to becordial. Dedicated work by the workmen, supervisors, andexecutives of your Company made it possible to achievesuccess under trying and difficult circumstances.
BOARD RESPONSIBILITY STATEMENT
The data and disclosures in the Report have been reviewedinternally by the management to ensure completeness andrelevance. The Board believes that this Report is a fairrepresentation of the Company's financial, non-financial,sustainability, and operational performance and addressesall material topics relevant to the Company for FY 2025-26.The Board notes that the contents of this Report have beenprepared by the respective functions and businesses underthe guidance of the senior management.
OTHER DISCLOSURES
During the year under review:
a. No credit rating has been obtained by the Companywith respect to its securities. Further, the details of thecredit rating obtained by the Company with respectto its long-term and short-term borrowings have beenprovided in the Corporate Governance Report, whichforms part of this report.
b. No application has been made under the Insolvencyand Bankruptcy Code, 2016 (IBC). Further, there areno proceedings admitted against the Company underthe IBC.
c. The Company is in compliance with the MaternityBenefit Act, 1961.
d. During the year, there was no one-time settlementdone with the Banks or Financial Institutions.
e. Disclosures included in the the Corporate Governancereport & Business Responsibility and SustainabilityReport of this report are not included in theBoards Report.
ACKNOWLEDGEMENT
Your Board of Directors take this opportunity to thank allits stakeholders, including banks, financial institutions,business partners, government and other statutory bodies,regulatory authorities, analysts and members for theircontinued support and valuable cooperation. The Board ofDirectors also wish to place on record its deep sense ofappreciation for the committed services by the Company'semployees at all levels.
For and on behalf of the Board
Dr. Davuluri Rama Mohan Rao
Place: Hyderabad Executive Chairman
Date: May 12, 2026 (DIN: 00107737)