Cosmo First Ltd Management Discussions

1. COMPANY OVERVIEW

Cosmo First, originally established as Cosmo Films in 1981, P1oneered the introduction of BOPP films in India. Today, the Company stands as the worlds largest producer of thermal lamination films and the second-largest producer of specialty label films globally. It is also a leading player in the Indian BOPP films market and over the years the company has also forayed into the technical film, rigid packaging, synthetic paper, and premium window film businesses. Cosmo Firsts commitment to innovation is underscored by its advanced R&D center in Aurangabad, with six registered patents; eleven in P1peline- seven in India and four overseas. The Company prides itself on practicing excellent corporate governance and maintaining a culture of professional management, which provides a long- term competitive advantage.

Cosmo First had developed a well-diversified business model that caters to the evolving needs of its customers. The Company combines specialty and commodity films, specialty chemicals, rigid plastics, window films brand Cosmo Sushield and Cosmo Paint Protection Film and its pet care brand, Zigly, under one umbrella.

Cosmo has maintained a consistent strategy and business model. We have a unique combination of widest product portfolio under one roof, customised innovation, always ahead in product development curve, allocation flexibility in job line, scale, global reach and global warehousing facility. By remaining focused on our strategy and our unique value proposition for customers, the Company will continue to grow and drive long term value creation for shareholders and other stakeholders.

DesP1te changing market conditions, Cosmo Firsts long-term value-generating potential remains robust. The Companys diversification into new product segments, such as Cosmo Sunshield Window Films, Transparent CPP film especially developed for chocolate sealant layer, Graphic films PVC free, High shrink label films, Chemically recycled PCR BOPP film, Holographic Lamination Films, Capacitor Grade MPP Film, Green-Graphic Self Adhesive Film reflects the Companys dedication to innovation and broadening its market reach. Moreover, the promising opportunities in specialty chemicals and the pet care segment further strengthen the robust local demand for packaging products.

The Companys strategic investments and a focus on customer needs, combined with a capable and experienced team and a people-first approach, ensure that Cosmo First will continue to thrive and create value for all stakeholders.

2. MACROECONOMIC OVERVIEW AND OUTLOOK

2.1 Global Economy

The global economy is again disrupted, this time with the outbreak of war in the Middle East. Rising commodity prices, firmer inflation expectations, and tighter financial conditions are testing the recent resilience. Under the assumption ofa limited conflict, global growth is projected at 3.1 percent in 2026 and

3.2 percent in 2027, below recent outcomes and well under prepandemic averages. Global inflation is expected to tick up in 2026 and resume its decline in 2027.

Global headline inflation is expected to increase to

4.4 percent in 2026 and decline to 3.7 percent in 2027, marking upward revisions for both years.¹

2.2 Indian economy

Indias economy continued to demonstrate strong momentum during the year, with GDP growth of 7.4%, driven by robust consumption and investment, reinforcing its position as the worlds fastest-growing major economy for the fourth consecutive year.

3. INDUSTRY OVERVIEW

Cosmo First, a prominent leader in the flexible packaging industry hasestablished a robust presence worldwide. With an expansive product portfolio encompassing BOPP films, BOPET films, thermal films, coated and other specialty films, the company effectively serves diverse packaging requirements across various industries.

Over last few years, the Company has diversified into various other business verticals-Speciality Chemicals, Rigid Packaging, Sun Control Films and Petcare.

Cosmo Specialty Chemicals is operating in niche value add areas aims to revolutionize the coating chemicals, masterbatch and adhesive segments through sustainable technology.

Addittionaly, our rigid packaging solutions provides end-to-end rigid packaging solutions and is uniquely focused on direct to brand sales. It uses injection moulding and thermoforming techniques and specializes in creating customized packaging solutions for a variety of fast-moving consumer goods products.

We recently launched a new vertival Cosmo Consumer which includes window films under the brand name Cosmo Sunshield and Paint protection film under the brand Cosmo PPF. Cosmo Sunshield specializes in premium window film solutions designed for commercial buildings, residential spaces and automotives with a wide range of Safety Films and Privacy Films. Cosmo Paint protection films are high quality grade films launched for Indian market with qualities like scratch resistance, UV protection and Chemical resistance.

Furthermore, our petcare brand Zigly provides unique value proposition to Pet Parents with D2C Omni-channel presence.

Driven by innovation, a customer-centric approach, and a commitment to sustainability, Cosmo First continues to drive growth and deliver significant value to its stakeholders across these dynamic industries.

3.1 Flexible packaging industry overview

The global flexible packaging market size has grown strongly in recent years. It will grow from $308.11 billion in 2025 to $331.79 billion in 2026 at a compound annual growth rate (CACR) of 7.7%. It will grow to $444.76 billion in 2030 at a compound annual growth rate (CACR) of 7.6%.

The India Flexible packaging market is worth USD 20.41 Billion in 2025, growing at an 11.46% CACR and is forecast to hit USD 35.11 Billion by 2030.

The India Flexible packaging market is witnessing adoption of smart packaging technologies with recyclable and biodegradable materials, rising demand for lightweight packaging solutions, growing use of high-barrier flexible packaging, expansion of custom printed packaging formats and enhanced focus on shelf-life extension.

Several factors propeling the packaging industrys growth are increased demand in food and beverage sectors, regulatory pressures for recyclable materials, light weighting in transport logistics, rising disposable incomes and improved living standards of people.

Other factors driving the growth of packaging industry includs the burgeoning e-commerce sector, evolving consumer preferences favoring customization, convenience, health, and affordability, and increasing global demand for processed foods.

Domestic demand and supply scenario is expected to be favourable for coming years.

3.2 Speciality chemicals industry overview

The speciality chemicals market plays a critical role in many sectors of the global economy, including construction, automotive, electronics, textiles, and healthcare. Specialty chemicals exist as high-value chemical products that manufacturers produce to fulfill specific functions. Specialty chemicals differ from commodity chemicals because they require advanced research and development while custom production methods create specialized products which generate higher profit margins.

The Indian Coatings Chemicals market is 1200K MT and is expected to grow @8-10% p.a.

The growth can be attributed to raP1d urbanization, massive government-backed infrastructure projects (such as the Smart Cities Mission) and a rising middle class with higher disposable incomes. Additionally, the expansion of local manufacturing and strict environmental regulations favoring eco-friendly products are propelling demand.

The Indian masterbatch maket size has grown strongly in recent years. Currently it is 35K MTand is expected to grow @10% p.a.

The growth can be attributed to expansion of plastics manufacturing, rising demand for colored plastic products, growth of packaging industry, availability of polymer processing technologies, adoption of additive-enhanced plastics.

The Indian market size of adhesives is Rs 30K Cr and is growing @8-10% p.a. The growth can be attributed to increasing demand for electric vehicle adhesives, rising adoption of automation-compatible adhesive systems, expansion of sustainable adhesive formulations, growing use in renewable energy installations, increasing focus on long-life bonding solutions.

3.3 Rigid Packaging

The Global Rigid packing market grow from $603.32 billion in 2025 to $639.97 billion in 2026 at a compound annual growth rate (CACR) of 6.1%.² The rigid packaging market size is expected to see growth in the next few years. It will grow to $801.3 billion in 2030 at a compound annual growth rate (CAGR) of 5.8%.

The Indian industry size of rigid packaging is Rs 10000 Cr. and is growing @10% p.a.

The market is experiancing positive growth due to increasing demand for packaged goods and beverages globally. Rising preference of consumers towards packaged products due to lifestyle and growing busy schedules has propelled the sales of rigid packaging.

3.4 Sun Control Films

The global sun control film market size was valued at USD 822 million in 2025. The market is projected to grow from USD 865 million in 2026 to USD 1,160 million by 2034, exhibiting a CAGR of 5.1% during the forecast period.³

The India window film market is Rs 1000 Cr and is growing @ 8% p.a. This growth is driven by increasing awareness of energy efficiency and rising demand for sustainable building materials

3.5 Pet care industry

The pet care market size was valued at USD 243.50 billion in 2025 and is projected to grow from USD 260.10 billion in 2026 to USD 361.20 billion by 2031, registering a CAGR of 6.80% from 2026 to 2031.⁴

The Indian Petcare market is Rs 25000 Cr and is growing @ 22-23% p.a Increasing adoption rates, particularly among millennials, Gen Z, and urban households, have expanded the global pet population and boosted demand forfood, healthcare, grooming, and related services. At the same time, pets are increasingly viewed as family members rather than animals, leading owners to prioritize comfort, nutrition, and overall well-being. This emotional connection encourages higher spending on premium products, specialized diets, wellness solutions, and personalized services, significantly accelerating market growth and premiumization within the industry.

A 2025 consumer survey referenced by the pet food industry showed that over 50% of pet owners ranked pet-related expenses above discretionary personal spending, including entertainment and dining. Even amid inflationary pressure, consumers continued to maintain or increase spending on pet food, grooming, and healthcare, highlighting the non-discretionary nature of pet care. This spending resilience is supporting volume stability and premium adoption across the industry.

Among the 1,500 respondents, 68% dog owners and 32% cat owners, 72% reported spending between USD 50 and USD 200 per month on pet-related expenses such as food, grooming, insurance, veterinary care, toys, and dental hygiene products. This steady expenditure reflects strong demand, particularly within the dog care market, where owners invest heavily in specialized nutrition, grooming services, and oral hygiene solutions such as dental chews, toothpaste, and cleaning accessories, contributing to the expansion of the pet oral care products market. The consistency of monthly spending indicates that pet care has become a regular household expense rather than an occasional one.

Pet ownership in India is growing, with pets increasingly treated as family members, and this shift is reflected in changing shopP1ng patterns and spending on pet welbeing.⁵

4. BUSINESS SEGMENTS AND PERFORMANCE

Cosmo First, a prominent leader in the flexible packaging industry, has established a robust presence worldwide. It has developed a well- diversified business model that caters to the evolving needs of its customers. The Company combines specialty and commodity films, specialty chemicals, rigid plastics, window films brand Cosmo Sushield and Cosmo Paint Protection Film and its pet care brand, Zigly, under one umbrella.

4.1 Flexible packaging

Asa market leader in Packaging Industry, Cosmo First excels in delivering high-quality films and provides additional value-added services. We are among the top four global players in BOPP specialty films and rank as the second-largest player in the world for specialty label films. Additionally, Cosmo First

is the largest supplier of thermal lamination films worldwide. Our comprehensive portfolio of BOPP Films caters to various applications such as flexible packaging, lamination, labeling, and industrial uses. This range features innovative specialty films like high barrier films, velvet thermal lamination films, and direct thermal printable films.

Crowing Specialty Films Product Portfolio

The Company operates state-of-the-art manufacturing facilities with a combined annual installed capacity of:

BOPP Films: 2,77,000 MT (Last year 1,96,000 MT)

BOPET Films: 30,000 MT

Thermal Lamination Films: 26,000 MT

Coated Specialty Films: 45,000 MT (Last year 36.000MT)

Metalised Films: 57,000 MT CPP Films: 30,000 MT CSP Films: 7,200 MT

4.2 Speciality chemicals

Cosmo Speciality Chemicals excels with three distinct verticals: coating chemicals, masterbatches and adhesives. Each segment focuses on niche specialties, addressing current industry challenges or providing significantly superior products compared to those currently available.

Our annual capacities are impressive with 7KMT for coating chemicals, 10KMT for masterbatch and 2.8KMT for adhesives.

In the Specialty Chemicals segment, Cosmo First has achieved EBITDA of over 25% with sales revenue of Rs 204 crore in FY26.The revenue growth CAGR in last 2year increased to 20% We target to reach about 10% of Companys consolidated revenue from specialty chemicals with 20%+ ROCE by FY30.

4.3 Rigid Packaging (Plastech)

Started In 2023, Cosmo Plastech is the end-to-end rigid packaging solutions division of Cosmo First that specializes in creating customized packaging solutions for a variety of fast-moving consumer goods (FMCG) products. At Cosmo Plastech, we use injection moulding and thermoforming techniques to manufacture our products, which are made from high-quality materials to ensure durability and reliability.

At Cosmo Plastech, we work closely with ourclients to understand their specific packaging needs and then design and manufactures customized containers to meet those needs. Our expertise in injection moulding and thermoforming techniques, as well as our BOPP-based film, makes us a trusted partner for many companies across the globe.

We are proud to have achieved the globally recognized FSSC 22000 food safety certification,

Why Cosmo Plastech:

Cosmo Plastechs ability to provide customized solutions with high-quality and precision accuracy along with our R&D strengths sets us apart from others.

Our focus on meeting the unique needs of our customers is unparalleled and has helped us become a trusted partner for a wide range of industries.

Highest focus on sustainability and circular economy Global Footprints with presence in 100+ countries Highest level of precision accuracy across the industry. reflecting our commitment to the highest standards. Cosmo State-of-the-art machineries and R&D team makes our products moisture resistance tamper proof and gives excellent clarity which makes it a popular choice for packaging applications.

With a target ROCE in the teens and operating in an industry growing at over 10%, we are focused on establishing direct partnerships with leading brands. Our dedication to quality and innovation positions us as a trusted partner in the FMCG sector, ensuring we consistently meet and exceed the expectations of our clients.

4.4 Cosmo Consumer

Cosmo Consumer is the consumer-focused business division of Cosmo First Limited, dedicated to offering high-performance surface protection and lifestyle solutions for homes, commercial buildings, and automobiles

Its portfolio includes-

• Cosmo Sunshield for high-performance window films,

• Cosmo PPF for durable paint protection film, and

• Cosmo Guard for innovative surface protection.

Together, these brands combine technology and design to elevate comfort and aesthetics in everyday environments by using the nanotechnology that enhances thermal comfort and visibility. These solutions are engineered for durability, clarity, and long-term performance.

4.5 Pet care

The companys direct-to-consumer vertical, launched under the brand Zigly in September 2021, is progressing well as per plan following an D2C Omni Channel Approach. With over 40 experience centers operational as of March 2026 as compared to 30 centres in FY 25, the Company is on targetting to achieve 50+ experience centre in next couple of years out of which Company had already established 2 additiional experience centres till May 2026.

Zigly achieved an annualised Cross Merchandise Value (CMV) run-rate of Rs 90Cr. in FY26 representing robust 91% year on year growth , fruther, the revenue from opertions reached Rs 55 Cr. in FY26 registering 63% increase over FY25.

Zigly has already served miore than 71000 customers during FY26 with approximately 35% repeated custosmers indicating strong customer retentions and loyalty. The brand digital and social media presence continued to strenghthen with the community of over 313000 followers.

The Company had recently launched the Dry foods, wet foods, shampoo and winter collection etc under the brand name of Zigly Lifestyle, applod and Furpro. The Company had recently acquired 2 vet hosP1tals onein Mumbaiand other in Bangalore. The Companys focus is to further amplify Ziglys growth in the coming years, both organically and through potential acquisitions.

5. GROWTH

The Company is in significant expansion mode. The Company has invested around 1200 crores in the last three years in multiple growth projects including BOPP, CPP & Polyester lines, Metallizers, Coating lines, Window/PPF films, Zigly and Rigid Packaging. These investments will position the Company for significant revenue as well as profitability ramp up in the coming years.

The BOPP line with annual capaicty of 81000 MT started commercial production in June 2025. Further one of the worlds largest coating line is expected to be commenced in FY 27 with the annual capacity of 18000MT. The new film lines are the most cost- efficient and should make Cosmo more competitive in the market.

Cosmo Sunshield commenced commercial production in May 2025 and has achieved an annualized run rate of Rs38 crore, while generating revenue of Rs23 crore in FY26. The Company has also launched the 4 new vairants of Cosmo PPF (Paint Protection Film) which delivers premium, high performance paint protection for vehicles, engineered with cutting edge technology, these films preserve original paint finish, shield against environment damage and ensure long lasting

showroom fresh and flawless look.These products are now available across TOO cities through its distributor network, along with direct channel partners in more than 10 cities.

These initiatives will ramp up in revenue as well as profitability in next two to three years.

The companys focus will be on building consumer businesses (Window Films, Paint Protection Films & Petcare verticals), achieving close to full capacity utilization in all B2B businesses, scaling verticals having high return on caP1tal employed and further pushing down the cost.

6. FINANCIAL PERFORMANCE

During the financial year 2026, Cosmo First achieved consolidated sales of Rs 3,639 crores. Consolidated EBITDA for theyear stood at Rs 479 crores, compared to Rs 362 crores in the previous financial year, primarily due to higher volumes following the commissioning of new BOPP and CPP lines, growth in speciality films, and improved profitability in the specialty chemicals business.

On a standalone basis, the Company recorded sales of Rs 3,356 crores. Standalone EBITDA was Rs 397 crores, compared to Rs 301 crores in the previous year, primarily for the same reasons as mentioned above.

The financial strength is further highlighted by a healthy Net Debt/EBITDA ratio of 2.4 times and Net Debt/Equity ratio of 0.7 times. These metrics demonstrate the Companys prudent financial management and strong ability to leverage its resources for sustained growth and stability.

During this year, Cosmo First incurred caP1tal expenditure of Rs 412 crores, compared to Rs 502 crores in the previous financial year. This expenditure is set to enhance the sale of specialty films, support sustainability initiatives, and sourcing solar power as an energy source. Continuous investment in R&D, sales and marketing, employee practices, quality, and customer satisfaction has reaffirmed the Companys growth strategy, as evidenced by the year-on-year growth in specialty films sales.

The Company has made concerted efforts to enhance brand visibility. Exports for the financial year amounted to Rs 1,592 crores, representing 44% of total sales. The Company exports to over 100+ countries across the globe.

The Company maintains a robust financial position, evidenced by its substantial cash and cash equivalents, including liquid investments of Rs 420 Crore as of 31st March 2026 at the consolidated level.

These strategic initiatives and strong financial performance highlight Cosmo Firsts resilience and commitment to sustainable growth and industry leadership.

The Specialty Chemical subsidiary has achieved EBITDA of over 25% with topline of Rs 204 crores in FY26. The performance of the overseas subsidiaries remained broadly consistent with that of the previous year. However, an improvement is anticipated in FY27.

For next financial year, focus will be on achieving full capacity utilization in Films & Chemicals, higher growth in speciality sales; scaling up and being profitable in Plastech business and substantially grow B2C businesses.

7. KEY FINANCIAL INDICATORS

In accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) the Company is required to give details of significant changes (i.e. changes of 25% or more as compared to the immediately previous financial year) in key financial ratios.

There is no significant changes (i.e. 25% or more) in financial ratios viz. Current Ratio, Total Debt/Equity, Inventory and Trade Receivable Turnover Ratios.

Ratio	Measurement unit	FY26	FY25	% Change	Explanation
i) Net working caP1tal turnover ratio	Times	-24.36	-34.48	-29.37%	Primarily changed due to increase in trade payables.
ii) Return on investment (Equity instruments)	Percentage	22.48%	4.52%	397.79%	Return increased in financial year 2025-26 due to higher performance of equity instruments.

8. CHANCE IN RETURN ON NET WORTH

During the financial year 2025-26, Cosmo First maintained a positive return on net worth of 10.10%..

9. R&D AND NEW PRODUCT DEVELOPMENT

Cosmo First has largest Flexible Packaging R&D Infrastructure in India. Our state-of-the-art R&D labs, located in India and the USA, are equipped with cutting-edge equipment and instruments. These facilities are at the heart of our innovation efforts, where our dedicated R&D team actively pursues several sustainability projects, ensuring that Company remains a leader in sustainable film solutions.

Cosmo First has an impressive track record in product development, with six registered patents and eleven in the P1peline- seven in India and four overseas. Our dedicated R&D team, consisting of more than 30 scientists and technologists from prestigious universities in the USA and Europe, brings extensive global experience in packaging, polymer engineering, and biopolymers. This team plays a crucial role in maintaining our competitive edge through continuous innovation.

Cosmo First takes immense pride in its continuous investment in research and development, focusing on delivering innovative solutions that drive accelerated growth and spearhead new product development globally.

The Company has outstanding track record of continuous investment in R&D infrastructure by keep adding new instruments. Company has installed P1lot Laboratory Stretcher Machine KARO-IV (By Bruckner), Scanning Electron Microscope (Phenom XL G2 Desktop SEM by Thermo-Fisher), Water Vapor Transmission Rate Analyzer (MOCON AQUATRAN 3/38 H) and Oxygen Permeation Analyzer (MOCON OX-TRAN 2/28 H) for films division.

Throughout the year, our R&D efforts have resulted in the development of several new and sustainable products, significantly contributing to our growth and success.

During FY26, Company launched Premium Window Films Cosmo Sunshield and Paint Protection Films Cosmo PPF. Many more new films were launched this year- Green Graphics (PVC free) - Import substitute, TR BOPP film- Replacement of PET

(With uniform linear tear), Ultra High Barrier MET CPP film- Replacement of Foil & PE, CSP Dualcoat under Cosmo Synthetic Paper (sustainable), High Resistance BOPP film for string packs (replacing PET), barrier Metallized CPP film (nitrogen flushing - biscuits), Retort Grade Transparent CPP film (easy seal & peel), UV Inkjet Printable Coated Label Film (HP Indigo printing).

Cosmo Speciality Chemicals further strengthened its positioning in the masterbatch segment by redefining the category under a unified brand architecture tailored to the evolving needs of modern packaging

- The CosmoWhite™ & the CosmoAdd™ Brands. This year the R&D team has successfully developed two high-performance water-based side seaming adhesives: Cosmobond SPW 457 HP (for wheel application) and Cosmobond SPA 410 HP (for nozzle application) and two PU Adhesives : COSMOBOND SLPU 703A / 603B - A 2K low-cost general-purpose adhesive and COSMOBOND SLPU 507A/407B - A2K adhesive system specifically designed for lamination of metallized structures.

These achievements reflect the strong R&D capabilities, effective cross-functional collaboration, and a focused approach toward delivering customer- centric and commercially viable solutions.

10. SUSTAINABILITY AND ESC INITIATIVES

Cosmo First is deeply committed to sustainability, continuously enhancing the environmental performance of its products, operations, and supply chain. By prioritizing product efficiency and eliminating high-impact gases, the Company has significantly reduced its carbon footprint.

10.1 Environment

Cosmo First continues to enhance the sustainability profile of its products and operations through innovation-led initiatives that support circularity and responsible resource utilization. The Company offers mono-material film solutions that facilitate recycling and works closely with global customers to develop packaging structures with improved recyclability. Its innovation P1peline includes products such as Oxo- Biodegradable Films, Water-Based Coatings, and heat-resistant BOPP films, reflecting its focus on next-generation sustainable solutions. Additionally, ongoing improvements in BOPP and CPP film yield contribute to lower material usage and greater environmental efficiency without compromising product effectiveness.

The Company has invested in renewable energy sources and taking initiatives to consume green energy. The roof top solar power plants have been installed for all manufacturing units. The Company is currently catering solar renewable power through group captive plant and raised total usage of renewable energy to close to 50%. The Company expects to increase its usage to more than 2/3^rd of total consumption which would lead to power cost rationalization of about 20-50 Crore per annum.

The Company has achieved carbon footprint reduction of 1.02 lacs MT equivalent C02 emission for FY26. We have water treatment plants. 35% of the wastewater is being reused. The Company has taken several steps towards rainwater harvesting. Collection P1ts are provided to collect rainwater. Noise reduction measures are taken across all plants.

Recognizing that sustainability not only benefits the environment but also enhances business performance, Cosmo First stays ahead of customer demand for sustainable products and practices. This commitment positions the Company as an industry leader, dedicated to protecting the planet while driving innovation.

Acoustic enclosures are provided at high noise area to reduce noise to 80-85 DB. Initiatives and measures are being taken to minimize waste production and maximize the recyclability of post-industrial waste. Each plant has dedicated recycling plant for regranulation processes to increase input of usable Re-processed Granules (RPC).

Through strategic collaborations with the Indian Army, BSF, and local farmers, we have P1oneered Miyawaki and agroforestry projects that now cover 179 acres. A significant milestone was achieved this year with the plantation of 50,000 saplings, bringing our total cumulative plantation to 1,61,000 trees across Gujarat, Maharashtra, Haryana and Delhi. Thisyear, Cosmo Foundation expanded its ecological horizons by a robust electronic waste recycle program. We successfully facilitated the ethical processing of 383.3 kg of decommissioned hardware—comprising desktops and peripherals—through specialized, accredited recycling partners Our 11 rainwater harvesting systems in rural schools reached a critical milestone this year, conserving approximately 6.87 million liters and revitalizing local groundwater reserves. In tandem, we strengthened the upkeep of 201 rural school toilets, ensuring high standards of hygiene and safety.

10.2 Social

Under Computer Operation and Digital Skill Building initiative, our network grew to 28 computer labs, reached 7,115 students across two states. This year we launched a flagship Three-Tier Cyber Safety

Model to safeguard our digital beneficiaries. Through intensive training and community awareness, this intervention empowered 6,800+villagers to become informed, resilient digital citizens.

Through Cosmo Foundation initiative of Basic English Fluency Development Program we operated across 18 rural schools, the program empowered 2,645 students by shifting the focus from functional fluency in reading, writing, and verbal communication to complex.

Aligning our mission with the National Education Policy (NEP) 2020, we focused on the core components of Early Child Care Education (ECCE) and the LSWR (Listening, Speaking, Writing, Reading) framework.

Through a network of 36 learning centers and 34 dedicated Balmitras, we reached 3,645 students across Gujarat and Maharashtra.

We bridged the gender gap in the automotive sector through our Auto Electrical and EV Assembly Technician Course. In strategic alliance with JMA Marketing and ISIE India, we equipped 50 young women with specialized technical competencies and professional soft skills. This initiative achieved a prestigious 100% placement rate, with graduates securing roles in the burgeoning electric vehicle market with starting monthly salary between Rs 9,000 and 20,000, effectively recalibrating the gender ratio in technical manufacturing.

Our Nari ki Sawari initiative redefined mobility and vocational traditionalism by training 50 women in two and four-wheeler driving. Partnering with Maharani Chimnabai Stree Udyogalay, we empowered these women to enter male-dominated professional spheres with poise

Through our program The Beautiful Creation we transformed home-based crafting into a sophisticated business engine producing artisanal diyas, candles, rakhis, hanger, decorative items, soaps, candles, and handcrafted ornaments.Through our collaboration with FICCI FLO Vadodara, we institutionalized professional packaging and design standards through various trainings, while facilitating market access through 10 high-profile exhibitions

10.3 Governance

Governance and Responsibility

The Board of Directors bears the overall responsibility for upholding the highest standards of corporate governance. Supported by senior management, the Board ensures best practices are followed consistently.

This is achieved through a consultative approach, seeking input from all stakeholders, including shareholders, employees, vendors, suppliers, customers, community representatives, government authorities, and industry representatives.

Cosmo First is deeply committed to ethical and responsible business practices, not just to ensure fairness but because it is the right thing to do. The Company integrates economic, social, and environmental considerations into its strategic planning, risk management, and governance approach.

Philosophy of Corporate Governance

For Cosmo First, maintaining the highest standards of corporate governance is not a mere formality, but an integral part of its core values and a way of life. The Companys philosophy of corporate governance aims to achieve business excellence by enhancing shareholder value, and transparency and ethical business practices are key in discharging corporate responsibilities

By adhering to these principles, Cosmo First strives to foster trust and confidence among its stakeholders, ensuring long-term sustainable growth and a positive impact on society and the environment.

11. INTERNAL CONTROL SYSTEMS, RISKS AND MITIGATION STRATEGY

At Cosmo First, the Risk Management, Internal Control Systems, and Internal Audit functions collaborate to form a comprehensive risk management framework. This framework is designed to effectively identify and mitigate risks across the organization..

Internal control systems

The Companys internal control systems are commensurate with the nature of its business, the size and complexity of its operations and such internal financial controls with reference to the Financial Statements are adequate.

The Company has documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance regarding maintaining proper accounting controls for ensuring reliability of financial reporting, monitoring of operations and protecting assets from unauthorized use or losses, compliance with regulations.

The Internal Financial control is supplemented by an extensive program of internal audit conducted by in house trained personnel and external firm of Chartered Accountants appointed on recommendation of the Audit Committee and the Board. The audit observations and corrective action, if any, taken thereon are periodically reviewed by the Audit committee to ensure effectiveness of the Internal Financial Control System. The internal financial control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data, and for maintaining accountability of persons.

Risks & mitigation strategy

The Company has in place a robust risk management framework that identifies and evaluates business risks and opportunities. Cosmo recognises that the risks need to be handled effectively and mitigated to protect the interests of the shareholders and stakeholders, to achieve business objectives and create sustainable value and growth.

Few factors have been identified that could potentially have an adverse impact on the Companys consolidated financial position, results of operations, or cash flows.

The addition of capacity in the industry within a short time frame may temporarily impact margins. To mitigate this, Cosmo First has taken steps to increase resistance to market fluctuations by shifting its product mix to specialty products.

Potential loss due to non-availability of technical infrastructure or appropriate software technology, impact on data integrity, data theft or loss of Intellectual Property Right (1 PR) due to compromised networksecurity

Strategic risks can be in form of changes in consumer demand, competition, intellectual property challenges and key customer attrition. Our risk mitigation activities include staying ahead in the new product development curve, relying on the patent, trademark, copyright and trade secret laws of the countries in which we operate and non-disclosure agreements. Our Key Account Team works with the purpose to maintain good customer relationships and keep the attrition at manageable level.

Operational risks involve attracting and retaining key personnel, global health outbreaks, and information technology vulnerabilities. Cosmo First addresses these risks by:

Creating a supportive workenvironment that promotes personal and professional growth

Implementing measures to mitigate IT risks, although acknowledging the susceptibility to advanced threats that could disrupt operations and compromise sensitive data

Financial risks include exchange rate risks, interest rate risks, and internal control risks. To manage these risks, the Company uses various derivative contracts, such as foreign exchange forward contracts, currency options, cross-currency swaps, and interest rate swaps. Add itional ly, the Com pa ny:

Follows a policy to minimize exposure to long-term financing interest rate fluctuations

Maintains adequate internal financial controls, adhering to criteria established by the Institute of Chartered Accountants of India (ICAI)

In response to regulations concerning safety, green house gas emissions, climate change, and plastic recycling, Cosmo First takes proactive measures to ensure compliance with all safety, health, and environmental regulations. The Companys legal and R&D functions work diligently to protect its patents and proprietary technology across different regions. Robust systems and processes are in place to monitor and ensure compliance with relevant laws, rules, regulations, and guidelines, thereby upholding legal and regulatory compliance atall levels ofthe organization.

12. OPPORTUNITIES

1. Rising Demand from FMCG and Food & Beverage Sectors

Growing consumption of packaged food, beverages, personal care, and household products is driving demand for flexible packaging due to its convenience, durability, and cost-effectiveness.

2. Shift Towards Sustainable Packaging

Brands and consumers are increasingly seeking environmentally responsible packaging solutions. This creates opportunities for:

• Recyclable mono-material structures

• Lightweight packaging solutions

• Use of recycled content

• Developmentof biodegradableand compostable packaging

3. Growth of E-commerce

The raP1d expansion of e-commerce requires packaging that is lightweight, durable, and capable of protecting productsduring transportation. Flexible packaging offers advantages in shipP1ng efficiency and reduced logistics costs.

4. Technological Advancements

Innovations in:

• High-barrier films

• Smart packaging

• Specialty coatings

• Advanced laminates are enabling manufacturers to offer value-added solutions and improve product performance.

5. Replacement of Rigid Packaging

Flexible packaging often offers:

• Lower material consumption

• Reduced transportation costs

• Better storage efficiency

• Lower carbon footprint

As a result, many applications are transitioning from rigid to flexible packaging formats.

6. Increasing Demand for Specialty Films

Industries are increasingly seeking packaging with enhanced barrier properties, longer shelf life, anti- counterfeiting features, and superior aesthetics, creating opportunities for specialty and value-added films.

13. HUMAN RESOURCES

For Cosmo, people are at the heart of all actions and decisions. The organisation has always nurtured people, empowering them to grow both personally and professionally. Being focussed on helP1ng people thrive, HR has been playing a transformative role. It has always gone beyond traditional administrative tasks to focus on creating a supportive culture, fostering learning opportunities, and ensuring everyone feels valued. While building inclusivity in the organisation remained at the forefront of the HR strategy, development of all forms of diversity witnessed a greater focus.

As we continue our journey of growth at Cosmo, we remain committed to strengthening a performance- driven, fair and transparent culture.

14. INDUSTRIAL ENVIRONMENT

The organisations overall employee relations remained positive throughout the year. Understanding them and keeP1ng employees need ahead in all major decisions resulted in a more engaged, motivated, involved and committed workforce. Various initiatives were implemented at the plant locations that encouraged collaboration and participation of not just employees but also of their families. We maintained a pleasant and cordial working environment across all manufacturing locations.

The total employee strength as on March 31, 2026 stood at 1518.

15. CAUTIONARY STATEMENT

This report will includeForward-Looking Statements, such as statements about the implementation of strategic plans and other statements about Cosmo Firsts potential business developments and financial results. While these statements reflect the Companys current assessments and future expectations, several risks, uncertainties, and unknown factors could cause actual results to differ significantly from those anticipated. General market, macroeconomic, governmental, and regulatory patterns, changes in currency exchange and interest rates, competitive pressures, technical advances, changes in the financial conditions of third parties doing business with the Company, regulatory developments, and other main factors that may have an effect on the Companys business and financial results. The Company does not undertake any obligation to update or revise forward-looking statements to reflect new information, future events, or circumstances that may arise.