Your Directors have pleasure in presenting their 17^th Annual Report on the business and operations of the Company
together with Audited Statement of Accounts for the financial year ended March 31, 2026.

1. FINANCIAL PERFORMANCE :

The highlights of the financial performance of the Company on Standalone and Consolidated basis for the
financial year ended March 31, 2026, are as under:

*includes share in profits of associates and joint ventures

2. Share Capital

The paid-up Equity Share Capital as on 31^st March, 2026 stood at Rs.188.34 Millions. During the year under
review, the Company has not issued shares with differential voting rights nor has granted any stock options or
sweat equity. As on 31^st March, 2026, none of the Directors of the Company hold instruments convertible into
equity shares of the Company.

3. Dividend & Reserves :

Based on the Company's performance, the Directors are pleased to recommend a dividend of $ 10/- per Equity
Share of $ 5/- each (i.e. 200%), for the financial year ended March 31, 2026, for approval of the members. The
Board has recommended dividend based on the parameters laid down in the Dividend Distribution Policy,
adopted by the Company pursuant to Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. The dividend on Equity Shares, if approved by the members would involve cash outflow of
$ 376.68/- Million and shall be subject to deduction of income tax at source.

During the year under review, the Company does not propose to transfer any amount to the General Reserve.

4. Management Discussion and Analysis

The main object of the Company is to make strategic investments in the Kalyani Group Companies. The Company
is a Non-Deposit taking Core Investment Company, as defined in the Core Investment Companies (Reserve Bank)
Directions, 2011. Since the Company is not a Systemically Important Non Deposit taking Core Investment Company,
it is not required to obtain Certificate of Registration under Sec. 45-IA of the Reserve Bank of India Act, 1934.

The Directors confirm that the Investments have been made with the intent to hold for long term and are not
held for sale.

The Company endeavours to evaluate opportunities and invest considering the macro economic conditions. The
report on management discussion and analysis forms part of Annual Report.

Key Financial Ratios

Details of changes in key financial ratios including significant changes i.e. change of 25% or more as compared
to the immediately previous financial year along with detailed explanations:

Return on net worth is computed as net profit by average net worth. The details for change, if any, in return on
net worth are explained in relevant sections above.

Concerns and Threats

• Fluctuations in the securities market and global economic scenario, may pose a risk of devaluation of the
investments made by the Company.

• Main source of income for the Company is dividend from the Kalyani Group Companies.

• The risks and concerns associated with the businesses / operations of these investee companies, which may
impact the performance of these companies, could result in variation in dividends declared by these
companies.

• Non-recovery of principal of the amounts lent and interest thereon.

Company Performance

During the Financial Year under review, on a standalone basis, your Company earned total income of
Rs. 2074.23/- Millions (previous years Rs. 1367.32/- Millions). The net profit after tax is Rs. 1465.44/- Millions
(previous years Rs. 924.79/- Millions).

During the Financial Year under review, on a consolidated basis, your Company earned total income of Rs.
778.84/- Millions (previous years Rs. 627.45/- Millions). The net profit after tax is Rs. 2820.10/- Millions (previous
years Rs 2222.91/-Millions).

Business Overview and Operations of the Company

The main operations of the Company are that of investments and majority of the investments of the Company
are in the nature of strategic investments in Kalyani Group Companies. The Investments have been made with
a view to hold for long term and are not held for trade. The investment pattern of the Company also complies
with the requirement for the Company continuing to qualify as a Non-Deposit taking Core Investment Company.
The main source of income for the Company is in the form of dividends as declared by these companies. The
business prospects of the Company depend upon the business prospects of the underlying companies in which
your Company holds investments.

Finance and Credit Rating

During the year under review, the liquidity and cash positions were monitored with reinforced focus. Earnings
from the cash surplus investments, comprising bank fixed deposits during the year saw an increase due to the
increase in the market interest rates. Nevertheless, utmost importance was given to ensure the safety and
liquidity of surplus cash. Your Company has not done any Credit Rating during the year.

Human Resources

As on March 31, 2026, the Company had 2 employees who are also Key Managerial Personnel's i.e. CEO & CFO
& Company Secretary.

5. Business Responsibility and Sustainability Report

Pursuant to Regulation 34(2)(f) of the SEBI Listing Regulations, the Business Responsibility and Sustainability
Report initiatives taken from an environmental, social and governance perspective in given the prescribed
format. The same is also available on the Company's website at https://www.bfilpune.com/annual-report.html

6. Internal Control Systems and Their Adequacy

The Company has adequate internal control systems to ensure operational efficiency and accuracy in financial
reporting and compliance of various laws and regulations.

The internal control system is supported by the internal audit process. The internal audit is conducted by an
Independent Chartered Accountant. The Audit Committee of the Board reviews the Internal Audit process and
the adequacy and effectiveness of internal audit and controls periodically.

7. Safety, Health and Environment

The Company ensures safety of all its employees working at different places.

8. Cautionary Statement

Statements in this Report, particularly those which relate to Management Discussion and Analysis, describing
the Company's objectives, projections, estimates and expectations may constitute "forward looking statements"
within the meaning of applicable laws and regulations. Actual results might differ materially from those either
expressed or implied.

9. Subsidiary Companies, Joint Ventures & Associates

The Company does not have any subsidiary as on March 31, 2026. The information of joint ventures and associate
Company is given in the annual accounts for the year ended March 31, 2026 enclosed and forming part of the
Annual Report. As on March 31,2026, the Company had 6 Associates Companies and 2 joint ventures. There has
been no material change in the nature of the business of the Joint Ventures and Associates.

The Company's Policy on determining material subsidiaries, as approved by the Board, is uploaded on the
Company's website at

https://www.bfilpune.com/pdf/Polides%20and%20Terms/Policv%20on%20Material %20Subsidiary%2013022025.pdf

A report on the financial position of each of the Associates and joint ventures as per the Act is provided in Form
No. AOC-1 attached hereto as "Annexure IV" and also given in the Financial Statements.

10. Particulars of Information forming part of the Board's Report pursuant to Section 197(12) of
the Companies Act, 2013, read with Rule 5 of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014

The information required pursuant to section 197(12) of the Companies Act, 2013 read with Rule 5 of the
Companies (Appointment and Remuneration of Managerial Personnel ) Rules, 2014, as amended has been
provided in 'Annexure II'.

11. Number of Meetings of the Board

During the year under review, five Board Meetings were convened and held. The details of which are given in
the Corporate Governance Report which forms a part of this Integrated Annual Report. The intervening gap
between the Meetings was within the period prescribed under the Companies Act, 2013.

12. Directors' Responsibility Statement

Pursuant to the requirements of Section 134(5) of the Companies Act, 2013, in respect of Directors' Responsibility
Statement, your Directors' to the best of their knowledge and ability confirm that:

a) In the preparation of the Annual Financial Statements for the year ended March 31, 2026, the applicable
accounting standards have been followed and there are no material departures;

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

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

d) They have prepared the Annual Financial Statements on a going concern basis;

e) They have laid down proper internal financial controls and that such financial controls are adequate and
operating effectively; and

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

13. Company's Policy on Directors' and KMP's Appointment and Remuneration

Director's appointment and remuneration is done as per the policy for selection and appointment of Directors,
Key Managerial Personnel and Senior Management Personnel and their remuneration. The Policy is available on
the website of the Company viz

https://www.bfilpune.com/pdf/Polides%20and%20Terms/Nomination %20Remuneration%20Policv%2013022025.pdf

14. Accounts and Audit

a. Statutory Auditors and Audit Report :

At the fourteenth Annual General Meeting held on 26^th September, 2023 M/s P. G. BHAGWAT LLP, Chartered
Accountants (Firm Registration No.101118W/W100682), were re- appointed as Statutory Auditors of the
Company to hold office till the conclusion of 19^th Annual General Meeting. The Audit report of M/s P. G.
BHAGWAT LLP on the Financial Statements of the Company for the Financial Year 2025-26 forms part of
the Annual Report.

b. Secretarial Auditor and Secretarial Standards :

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. SVD & Associates,
Practicing Company Secretaries, Pune, to undertake the Secretarial Audit of the Company for the year
2025-26. The Report of the Secretarial Audit is annexed herewith as 'Annexure IN' to this Report.

Further in compliance with Regulation 24A of SEBI Listing Regulations and Section 204 of the Act and rules
thereunder, the Board at its meeting held on May 29, 2025 based on the recommendation of Audit
Committee, had approved the appointment of M/s. SVD & Associates, Practicing Company Secretaries,
Peer Reviewed Firm ( UIN: P2013MH031900 ) as Secretarial auditors of the Company for a term of 5 (five)
consecutive years commencing from FY 2025-26 to FY2029-30, as approved by members in 16^th AGM.

During the year under review, the Company has complied up to the extent applicable to the Company with
Secretarial Standards issued by The Institute of Company Secretaries of India and approved by the Central
Government under Section 118(10) of the Companies Act, 2013, to the extent applicable.

c. Cost auditors :

The maintenance of cost records and Cost Audit as prescribed under the provisions of Section 148(1) of the
Act are not applicable to the Company.

d. Reporting of Fraud by auditors :

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

15. Explanation on Comments on Statutory Auditors' and Secretarial Auditors' Reports

There are no qualifications, reservations or adverse remarks or disclaimers made by M/s P. G. BHAGWAT LLP,
Statutory Auditors, in their Audit Report. The reply to qualifications in Secretarial Audit report issued by M/s.
SVD & Associates is mentioned as under:

16. Particulars of Loans, Guarantees or Investment Under Section 186

During the year, the Company has not made any fresh investments. The closing balances of investments which
would be covered under Section 186 of the Companies Act, 2013, are disclosed in the Note No. 06 pertaining to
Schedule of Non-Current Investments in the Standalone Financial Statements. The details of loans and guarantees,
if any, are given in the Note N0. 05 of the Standalone Financial Statements of 2025-26.

17. Particulars of Contracts or arrangements with Related Parties referred to in Sub-section (1) of
Section 188 of the Companies Act, 2013

The Company has formulated a Policy on Related Party Transactions which is available on the Company's website at

https://bfilpune.com/pdf/Policies%20and%20Terms/BFIL Related%20Partv%20Transaction%20Policv%2029052026%20.pdf

All related party transactions entered into during FY 2025-26 were on arm's length basis and in the ordinary
course of business. No material related party transactions were entered into during the year under review by
the Company. Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of
the Companies Act, 2013 ('the Act') in Form No. AOC-2 is not applicable to the Company for FY 2025-26 and
hence the same is not provided. The details of the transactions with related parties are provided in the
accompanying Financial Statements.

18. State of Company's Affairs

Discussion on state of Company's affairs has been covered in the Management Discussion and Analysis.

19. Material Changes and Commitments between the date of the Balance Sheet and the date of
report

There have been no material changes and commitments affecting the financial position of the Company which
have occurred between the end of the Financial Year of the Company to which the Financial Statements relate
and the date of the report.

20. Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

A. Conservation of Energy and Technology Absorption

The Company has no particulars to report regarding conservation of energy, technology absorption as
required under Section 134 (3) (m) of the Companies Act, 2013, read with Rules thereunder.

B. Foreign exchange earnings and outgo

21. Dividend Distribution Policy:

In term of Regulations 43A of SEBI Listing Regulations, the Board of Directors of the Company has adopted a
Dividend Distribution Policy which can be accessed on the website of the Company at

https://www.bfilpune.com/pdf/Polides%20and%20Terms/Dividend%20Distribution%20Policy%20BFIL%2020082021.pdf

22. Risk Management

Risk Management at BF Investment Ltd. forms an integral part of Management focus.

The Risk Management Committee oversees the risk management process in the Company. The RMC is chaired
by an Independent Director and the Chairperson of the Audit Committee is also a member of the RMC. Some of
the risks identified are set out in the Management Discussion and Analysis and this report which forms part of
this Director's Report.

The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business
objectives. Major risks identified are systematically addressed through mitigating actions on a continuing basis.
These are discussed at the meetings of the Audit Committee and the Board of Directors of the Company.

23. Corporate Social Responsibility (CSR)

The Corporate Social Responsibility ('CSR') activities of the Company are governed through the Corporate
Social Responsibility Policy ('CSR Policy') approved by the Board. The CSR Policy guides in designing CSR activities
for improving quality of life of society and conserving the environment and biodiversity in a sustainable
manner. The CSR Committee of the Board oversees the implementation of CSR Projects in line with the Company's
CSR Policy. The CSR Policy is available on Company's website

https://www.bfilpune.com/pdf/Policies%20and%20Terms/CSR%20Policy.pdf

The Annual Report on CSR activities for FY 2025-26 is enclosed as 'Annexure I' to this Report.

24. Performance and Financial Position of each of the Subsidiaries, Associates And Joint Venture
Companies:

The information is given in AOC-1 attached as Annexure IV and at the relevant places in the Financial Statements.

25. Change in the nature of Business, if any

There has been no change in the nature of business during the Financial Year under review.

26. Details of Directors or Key Managerial Personnel
Directors/KMP's appointed/resigned during the year

Material Changes in the Board structure which have occurred between the end of the financial
year of the Company to which the financial statements pertains and the date of the report

Mrs. Mugdha Rajesh Vartak appointed as Director in capacity of Additional, Non-Executive Independent Director
of the Company w.e.f March 17, 2026. Shareholders Special Resolution was passed with requisite majority
through Postal Ballot dated May 06, 2026. Except this no such material changes occurred in the Board structure.

Employees designated as Key Managerial Personnel (KMP) during the year
• Not Applicable as both the employees are Key Managerial Personnels of the Company.

Independent Directors

The Company has received necessary declarations from all the Independent Directors confirming that they
meet the criteria of independence as prescribed under Section 149(6) of the Act and Regulation 16(1 )(b) and
25(8) of the SEBI Listing Regulations , that he/she meets the criteria of independence as laid it in Section 149(6)
of the Act and Regulation 16(1) (b) of the Listing Regulations. In the opinion of the Board, there has been no
change in the circumstances which may affect their status as Independent Directors of the Company and the
Board is satisfied of the Integrity, expertise and experience of all Independent Directors on the Board.

Further, the Independent Directors have in terms of Section 150 of the Act read with Rule 6 of the Companies
(Appointment & Qualification of Directors) Rules, 2014, confirmed that they have enrolled themselves in the
Independent Directors' Databank maintained with the Indian Institute of Corporate Affairs ('IICA'). They are
exempt from the requirement to undertake the online proficiency self-assessment test conducted by IICA or will
be giving the proficiency test if applicable within the stipulated time.

During the Financial Year 2025-26, a separate meeting, exclusively of the Independent Directors was held on
February 13, 2026.

Procedure for Nomination and Appointment of Directors.

The NRC is responsible for developing competency requirements for the Board based on the industry and
strategy of the Company. The Board composition analysis reflects in-depth understanding of the Company,
including its strategies, environment, operations, financial condition and compliance requirements.

The NRC conducts a gap analysis to refresh the Board on a periodic basis, including each time a Director's
appointment or re-appointment is required. The Committee is also responsible for reviewing the profiles of
potential candidates vis-s-vis the required competencies and meeting the potential candidates, prior to making
recommendations of their nomination to the Board. At the time of appointment, specific requirements for the
position including expert knowledge expected is communicated to the appointee.

The list of core skills, expertise and competencies of the Board of Directors as are required in the context of the
businesses and sectors applicable to the Company are identified by the Board and are available with the Board.
The Company has also mapped each of the skills, expertise and competencies against the names of the Board
Members possessing the same. The same is disclosed in the Corporate Governance Report forming part of this
Integrated Annual Report.

Criteria for determining Qualifications, Positive Attributes and Independence of a Director

The NRC has formulated the criteria for determining qualifications, positive attributes and independence of
Directors in terms of provisions of Section 178(3) of the Act and the SEBI Listing Regulations. The Policy on
Nomination & Remuneration is available on the website of the Company

https://www.bfilpune.com/pdf/Policies%20and%20Terms/Nomination %20Remuneration%20Policv%2013022025.pdf

Board Evaluation

The Board has carried out the annual evaluation of its own performance and that of its Committees and
individual Directors for the year pursuant to the provisions of the Act and the SEBI Listing Regulations.

The performance of the Board and individual Directors was evaluated by the Board after seeking inputs from all
the Directors. The criteria for performance evaluation of the Board included aspects such as Board composition
and structure, effectiveness of Board processes, contribution in the long-term strategic planning, etc. The
performance of the Committees was evaluated by the Board after seeking inputs from the Committee Members.
The criteria for performance evaluation are broadly based on the Guidance Note issued by SEBI on Board
Evaluation which included aspects such as structure and composition of Committees, effectiveness of Committee
Meetings, etc.

The Chairman of the Board had one-on-one meetings with each Independent Director and the Chairman of the
NRC had one-on-one meetings with each Non-Executive, Non-Independent Directors.

In a meeting dated February 13, 2026, the Independent Directors evaluated the performance of Non-Independent
Directors and performance of the Board as a whole including the Chairman of the Board. The NRC reviewed the
performance of the Board, its Committees and of the Individual Directors. The same was discussed in the Board
Meeting that followed the meeting of the Independent Directors and the NRC, at which the feedback received
from the Directors on the performance of the Board and its Committees was also discussed.

The Company follows a practice of addressing each of the observations and suggestions by drawing up an action
plan and monitoring its implementation through the Action Taken Report which is reviewed by the Board of
Directors from time to time.

Directors proposed to be appointed / re-appointed at the ensuing Annual General Meeting

1) Appointment of Mr. Amit B Kalyani (DIN: 00089430) who retires by rotation, at the ensuing Annual
General Meeting and being eligible, offers himself for re-appointment.

The brief resumes and other details relating to Directors who are proposed to be re-appointed, as required to
be disclosed under 'Secretarial Standard -2' (SS-2) and 'SEBI LODR', form part of the Notes and Statement
setting out material facts annexed to the Notice of the Annual General Meeting.

27. Names of Companies which have become or Ceased to be its Subsidiaries, Joint Ventures or
Associate Companies during the year

There were no new companies which have become subsidiaries or ceased to be joint ventures or associate
companies during the year.

28. Details of deposits which are not in compliance with the requirements of Chapter V of the
Companies Act, 2013

The Company has not accepted any Public Deposits under Chapter V of the Companies Act, 2013.

29. Details of significant and material orders passed by the regulators or court or tribunals
impacting the going concern status and company's operations in future

The Company has neither received nor is aware of any such order from Regulators, Courts or Tribunals during
the year.

There are no application made or proceeding pending under the Insolvency and Bankruptcy Code, 2016 as at the
end of the financial year, nor has the Company done any one time settlement with any Bank or Financial
Institutions.

30. Details in respect of adequacy of internal financial controls with reference to the financial
statements

The Company has suitable internal control system comprising of proper checks and balances, policies and
procedures. This includes code of conduct, whistle blower policy, MIS and internal audit mechanism.

The Audit Committee along with Management review the internal audit and internal controls on a regular
basis. The internal audit is conducted by an Independent Chartered Accountant.

The Audit Committee deliberated with the members of the management, considered the systems as laid down
and met the internal audit team and statutory auditors to ascertain, their views on the internal financial control
systems. The Audit Committee satisfied itself as to the adequacy and effectiveness of the internal financial
control system as laid down and kept the Board of Directors informed. However, the Company recognises that
no matter how the internal control framework is, it has inherent limitations and accordingly, periodic audits and
reviews ensure that such systems are updated on regular intervals.

31. Disclosure regarding maintenance of Cost Records as specified by the Central Government under
Sub-section (1) of Section 148 of the Companies Act, 2013

The Company is not required to comply with the provisions of Section 148 (1) of the Companies Act, 2013 with
respect to maintenance of cost records.

32. Composition of Board and Audit Committee

The composition of the Board and Audit Committee has been mentioned in the Corporate Governance Report
forming part of Annual Report.

33. Composition of CSR Committee

The CSR Committee comprised 3 Members out of which 1 is independent Director. During the year under review,
two meetings of the CSR Committee were held, details of which are provided in the Corporate Governance
Report. The CSR Policy is available on the website of the Company at

https://www.bfilpune.com/pdf/Policies%20and%20Terms/CSR%20Policy.pdf

During the year under review, there were no instances when the recommendations of the CSR Committee were
not accepted by the Board.

The details of amount spent/unspent, if any on CSR activities during the FY 2025-26 has been given in Annual
report of CSR annexed to this report.

34. Whistleblower Policy and Vigil Mechanism

The Company has formulated and implemented the Whistle Blower Policy / Vigil Mechanism. This has provided
a mechanism for directors and employees of the Company and other persons dealing with the Company to
report to the Chairman of the Audit Committee; any instance of unethical behavior, actual or suspected fraud
or violation of the Company's code of conduct. The aforesaid policy has also been uploaded on the Company's
website https://www.bfilpune.com/pdf/Policies%20and%20Terms/Whisle%20Blower%20Policy.pdf

35. Cash Flow

A Cash Flow Statement for the year ended March 31, 2026 is attached to the Balance Sheet.

36. Corporate Governance

A report on the Corporate Governance, along with the certificate of compliance from the Auditors, forms part
of this Annual Report. The Chief Executive Officer and the Chief Financial Officer of the Company have certified
to the Board on financial statements and other matters in accordance with the Regulation 17 (8) of the Listing
Regulations pertaining to CEO/CFO certification for the financial year ended March 31, 2026.

37. Obligation of Company under the sexual harassment of women at workplace (Prevention,
Prohibition And Redressal) Act, 2013 and Disclosure under the Maternity Benefit Act, 1961

The Company does not require to constitute the Internal Complaints Committee under the POSH Act as the
number of women employees are less than the required count. However, there are no complaints received
during the year.

Your Company is compliant with the statutory provisions of the Maternity Benefit Act, 1961.

38. Certificate from Practicing Company Secretary:

The Company has received a certificate from M/s. Paritosh Khandelwal & Associates, Company Secretaries,
confirming that none of the Directors on the Board of the Company have been debarred or disqualified by MCA
or SEBI or any such statutory authority from being appointed / continuing as Director and the same is appended
as 'Annexure V' to the Directors' Report.

39. Annual Return

Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on March 31, 2026 is
available on the Company's website at https://www.bfilpune.com/annual-return.html

40. Acknowledgment

Your Directors wish to place on record, their appreciation for the contribution made and support provided to the
Company by the shareholders, employees and bankers, during the year.

For and on behalf of the Board of Directors
of BF Investment Limited

A. B. Kalyani

Place : Pune Chairman

Date : May 29, 2026 DIN:00089430