Daikaffil Chemicals India Ltd Directors Report

To,

The Members,

Your Directors have pleasure in submitting their 34 th Annual Report of the Company together with the Audited Statements of Accounts for the year ended March 31, 2026.

1. FINANCIAL RESULTS:

The summarized standalone results of your Company are given in the table below:

( in Lakhs except per share)

Revenue from Business Operations	1334.75	749.84
Other Income	5.31	46.85
Total Income	1340.06	796.60
Total Expenses	1558.34	956.87
Profit/(loss) before Tax	(218.28)	(160.29)
Less: Tax Expenses (including for earlier years)	(4.21)	(1.31)
Net Profit/(Loss) After Tax	(214.07)	(158.98)
Paid Up Equity Share Capital (Face Value 10 each fully paid up)	600.00	600.00
Other Equity	73.77	285.22
Earning Per Share (Basic/Diluted)	(3.57)	(2.65)

2. DIVIDEND:

As the Company is incurring the losses during the year under review, your Directors do not recommend a dividend for the financial year 2025-26.

3. FINANCIAL PERFORMANCE AND OPERATIONAL REVIEW:

During the financial year ended 31 March 2026, the Company recorded a significant improvement in its operational scale with Revenue from Operations increasing by 77.99% to 1,334.75 Lakhs as against 749.84 Lakhs in the previous financial year. Total Revenue increased correspondingly to 1,340.06 Lakhs from 796.60 Lakhs in FY 2024-25.

Despite the substantial growth in revenue, the Company reported a Loss Before Tax (PBT) of 218.28 Lakhs as compared to a loss of 160.29 Lakhs in the previous year. The Loss After Tax (PAT) stood at 214.07 Lakhs against 158.98 Lakhs in FY 2024-25. The increase in losses was primarily attributable to higher operating expenses incurred during the year in connection with business expansion and operational activities.

The Companys EBITDA stood at negative 181.04 Lakhs compared to negative 133.11 Lakhs in the previous year. However, the EBITDA Margin improved from negative 16.71% in FY 2024-25 to negative 13.51% in FY 2025-26, indicating better operating efficiency relative to revenue generation.

The Net Worth of the Company stood at 673.77 Lakhs as on 31 March 2026 as against 885.22 Lakhs as on 31 March 2025. The reduction in Net Worth was primarily on account of the loss incurred during the year.

Earnings Per Share (EPS) stood at negative 3.57 per share compared to negative 2.65 per share in the previous year, in line with the higher loss recorded during the year.

Management Outlook

The Directors noted the strong growth in revenue achieved during the year. While profitability remained under pressure due to increased operating costs and investments in business activities, the improvement in EBITDA and PAT margins reflects better absorption of fixed costs and enhanced operational efficiency. The management remains focused on improving margins, strengthening working capital management, optimizing costs and achieving sustainable profitability in the coming years.

4. SHARE CAPITAL:

As on March 31, 2026, the Authorized share capital of the company stood at 10,00,00,000/- (Rupees Ten Crore Only) divided into 1,00,00,000 (One Crore) equity shares of 10/- ( Ten) Each.

As on March 31, 2026, the issued, subscribed and paid up Equity share capital of your Company stood at 6,00,00,000/- (Rupees Six Crore Only) divided into 60,00,000 (Sixty Lakh) Equity shares of 10/- (Rupees Ten ) each.

During the financial year 2025-26, the Authorised Share Capital of the Company was increased from 6,50,00,000/- (Rupees Six Crore Fifty Lakhs Only) to 10,00,00,000/- (Rupees Ten Crore Only) pursuant to the approval of the Members obtained through Postal Ballot on May 29, 2025, and consequential alteration of the Memorandum of Association.

5. TRANSFER TO GENERAL RESERVES:

The Company doesnt propose to transfer any amount to General Reserve.

6. INTERNAL FINANCIAL CONTROLS:

The internal financial controls with reference to the Financial Statements commensurate with the size and nature of business of the Company. Further Directors have personally overviewed the adequacy of internal controls and also appointed M/s SPSJ & Associates LLP. as the Internal Auditor to manage the internal controls of the company.

In addition to Internal Audit, the Company has implemented well established internal financial practices, tool for mitigating risk in order to ensure adequate internal financial control commensurate with the size of the Company.

7. FINANCIAL LIQUIDITY:

Cash and Cash Equivalent as at March 31, 2026 was 56.90 Lakh . The Companys working capital management is based on a well-organized process of continuous monitoring and control on Receivables, Inventories and other parameters.

8. RELATED PARTY TRANSACTIONS:

All contracts, arrangements, and transactions entered into by the Company with related parties during the financial year were in the ordinary course of business and on an arms length basis.

During the year under review, the Company has not entered into any Material Related Party Transactions except with its Parent Companies and/or Group Companies, i.e., transactions exceeding 10% of the annual consolidated turnover of the Company as per the last audited financial statements. Further, no transactions were entered into with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.

All Related Party Transactions are placed before the Audit Committee on a quarterly basis for its approval, ratification, and/or noting, as may be required. The Audit Committee has reviewed such transactions in accordance with the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR).

The Company has obtained omnibus approval from the Audit Committee for repetitive transactions proposed to be entered into during the financial year 2025-26. All such transactions were periodically reviewed by the Audit Committee and were found to be in compliance with the prescribed criteria.

A significant portion of the Related Party Transactions during the year pertains to transactions with the Companys

Parent Company and/or Group Companies, namely Mikusu India Private Limited, Heranba Industries Limited and/or Heranba Organics Private Limited .

Further, the Company had obtained prior approval of the shareholders at the previous Annual General Meeting for material Related Party Transactions in compliance with the provisions of Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The policy on Related Party Transactions as approved by the Board is uploaded on the Companys website may be accessed on the Companys website www.daikaffil.com .

As such, the disclosure of related party transactions in Form AOC-2 is not applicable. Comprehensive disclosures regarding related party transactions, in accordance with Ind AS-24, including the names of related parties and the specifics of transactions with them, are provided under the Notes to the Financial Statements.

9. VIGIL MECHANISM/WHISTLE BLOWER POLICY:

The Company has a Vigil Mechanism/Whistle Policy under which it established a Whistle Blower Policy/Vigil Mechanism.

This policy seeks the support of employees, channel partners and vendors to report Significant deviations from key management policies and report any non- compliance and wrong practices, e.g., unethical behaviour, fraud, violation of law, inappropriate behaviour/conduct etc.

The Vigil Mechanism/Whistle Blower policy cover serious concerns that could have grave impact on the operations and performance of the business of Daikaffil Chemicals India Limited. A Vigil (Whistle Blower) mechanism provides a channel to the employees and directors to report to the management concerns ethical behaviour, actual or suspected fraud or violation of the code of conduct mechanism provides for adequate safeguards against victimization of employees and Directors to avail of the mechanism and provide for direct access to the Chairman of the Audit Committee in exceptional cases.

The policy neither releases employees from their duty of confidentiality in the course of their work nor can it be used as a route for raising malicious or unfounded allegations against people in authority and/or colleagues in general.

The detailed Vigil Mechanism/Whistle Blower Policy of the Company is uploaded on the Companys website.

10. CODE OF CONDUCT:

All the Board Members and the Senior Management personnel have confirmed compliance with the Code.

11. POLICYONDIRECTORSAPPOINTMENT AND REMUNERATION:

The Nomination and Remuneration Committee of the Board formulated a Policy relating to the remuneration of Directors, Key Managerial Personnel and other Employees which, inter alia, prescribes the criteria for determining qualifications, positive attributes and independence of Directors. The

Policy is available on the website of the Company www. daikaffil.com .

12. PREVENTION OF INSIDER TRADING:

Pursuant to the SEBI (Prohibition of insider trading) Regulations, 2015, the Company has formulated and adopted a Code for Prevention of Insider Trading.

The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company. The Code requires pre-clearance for dealing in the Companys shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Board is responsible for implementation of the Code.

All Board of Directors and the designated employees have confirmed compliance with the Code.

13. CORPORATE GOVERNANCE REPORT:

The paid-up capital of the Company is 6,00,00,000/- (Rupees Six Crores) i.e. less than 10 Crores and the Net- worth of the Company is less than 25 Crores as on the last day of the previous financial year.

Pursuant to regulation 15(2) of SEBI (LODR) Regulations, 2015 the compliance with the corporate governance provisions as specified in regulations 17, 18, 19, 20, 21,22, 23, 24, 24A, 25, 26, 27 and clauses (b) to (i) of sub-regulation (2) of regulation 46 and para C, D and E of Schedule V SHALL NOT apply, in respect of those listed entities whose paid up equity share capital does not exceed rupees ten crore and net worth does not exceed rupees twenty five crore, as on the last day of the previous financial year. Accordingly, your company is exempt from attaching Corporate Governance report

14. RISK MANAGEMENT POLICY:

The Board has been vested with specific responsibilities in assessing of risk management policy, process and system.

The Board has evaluated the risks which may arise from the external factors such as economic conditions, regulatory framework, competition etc. The Executive management has embedded risk management and critical support functions and the necessary steps are taken to reduce the impact of risks. The Independent Directors expressed their satisfaction that the systems of risk management are defensible.

15. INDUSTRIAL RELATIONS:

During the year under review, your Company enjoyed cordial relationship with workers and employees at all levels.

16. CORPORATE SOCIAL RESPONSIBILITY:

The provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules 2014, were not applicable to the Company for the financial year ended March 31, 2026.

17. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES:

As on March 31, 2026, the Company has one 100% Wholly Owned Subsidiary namely Mikusu Global Industries Limited in Nigeria. A Statement containing the basic financial details of the aforesaid Subsidiary in Form AOC-I is annexed as Annexure-A .

Considering the criteria mentioned in Regulation 16 of the Listing Regulations, the subsidiary of the Company is not a Material Subsidiary. The Board of Directors of the Company has approved a Policy for determining material subsidiaries which is in line with the requirements of Listing Regulations. The Policy has been uploaded on the website of the Company and the same can be accessed at www.daikaffil.com .

Mikusu India Private Limited is a wholly owned (100%) subsidiary of Heranba Industries Limited. Mikusu, in turn, exercises de facto control over Daikaffil Chemicals India Limited by virtue of being its single largest shareholder and holding controlling voting rights at the Annual General Meeting of the company. Accordingly, Daikaffil Chemicals India Limited is considered a subsidiary of Mikusu India Private Limited and, therefore, a step-down subsidiary of Heranba Industries Limited.

18. DIRECTORS & KMP:

a. Appointment/Re-appointment/Resignation of Directors.

At the ensuring Annual General Meeting, Shri Sadashiv Kanyana Shetty (DIN: 00038681) , would retire by rotation and being eligible for the re-appointment, offers himself for re-appointment.

During the year under review following appointments and resignations took place:

Sr. No. Name	Designation	Nature of Change	Effective Date
1 Mr. Roshan Raghuram Shetty (DIN:08006518)	Whole-Time Director	Appointment	August 12, 2025

During the year under review, the non-executive directors of the Company had no material pecuniary relationship or transactions with the Company, other than sitting fees and reimbursement of expenses incurred by them for the purpose of attending meetings of the Board/Committee of the Company.

Details of the Directors seeking appointment/reappointment including a profile of these Directors, are given in the Notice convening the 34 th Annual General Meeting of the Company.

Based on the confirmations received, none of the Directors are disqualified for appointment under section 164(2) of Companies Act, 2013.

b. Key Managerial Personnel (KMP):

Pursuant to Section 2(51) read with Section 203 of the Companies Act, 2013 read with Rules made thereunder, the following persons has been designated as Key Managerial Personnel of the Company under the Companies Act, 2013

(a) Mr. Raghuram K Shetty, Managing Director

(b) Mr. Roshan Raghuram Shetty, Whole-Time Director

(c) Mr. Raunak R Shetty, Chief Financial Officer

(d) Mr. Jay Patel, Company Secretary & Compliance Officer

Mr. Roshan Raghuram Shetty was appointed as Whole-Time Director of the Company w.e.f. August 12, 2025 which was subsequently approved by the shareholders at the 33 rd Annual General Meeting held on September 23, 2025.

c. Declaration by Independent Directors:

The Company has received necessary declaration from each independent director under Section 149(7) of the Companies Act, 2013, that he/she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 read with rules framed thereunder and SEBI (LODR) Regulation.

In the opinion of the Board, the independent directors are, individually, person of integrity and possess relevant expertise and experience.

In terms of regulation 25(8) of the Listing Regulations, they have confirmed that they are not aware of any circumstances or situation which exist or may be reasonably anticipated that could impair or impact their ability to discharge their duties. Based on the declarations received from the independent directors, the Board has confirmed that they meet the criteria of independence as mentioned under regulation 16(1)(b) of the Listing Regulations and that they are independent of the management.

d. Annual Evaluation:

Pursuant to the provisions of the Companies Act, 2013 the Board has carried out the annual performance evaluation of its own performance, its committees and that of its individual Directors. The evaluation was done based on set questionnaires which were given to them at the time of evaluation.

e. Personnel:

Industrial relations at the Companys factory and other establishments remained cordial during the year. We appreciate the contribution made by the employees.

f. Remuneration Policy for the Directors, Key Managerial Personnel and other Employees:

In terms of the provisions of Section 178 (3) of the Act, the Nomination & Remuneration Committee is responsible for formulating the criteria for determining qualification, positive attributes and independence of a Director. The Nomination & Remuneration Committee is also responsible for recommending to the Board a policy relating to the remuneration of the Directors, Key Managerial Personal and other employees. In line with this requirement, the Board has decided to form Remuneration Committee.

g. Non Disqualifications of Directors:

None of the Directors on the Board of the Company for the Financial Year ending on March 31, 2026 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority. Practising Company Secretarys Certificate confrming the above is annexed herewith as Annexure-B .

19. MEETING OF BOARD AND COMMITTEE:

During the financial year under review the Board met 7 times, Audit Committee met 4 times, Nomination and Remuneration Committee met 2 times and Stakeholders Relationship Committee met 1 time. The details are given below:

(a) Meetings of the Board and Attendance thereof:

The Board met 7 (Seven) times during the financial year ended March 31, 2026 on the below mention date

Sr. No.	Date of Board Meeting
1	April 23, 2025
2	May 21, 2025
3	August 12, 2025
4	November 13, 2025
5	February 10, 2026
6	March 27, 2026*
7	March 27, 2026

* Separate Board Meeting of Independent Director.

Directors Attendance Record:

Sr. No.	Name of Director	No of Meetings entitled to attend	No of Meetings attended	% of attendance
1	Mr. Sadashiv K. Shetty	6	6	100%
2	Mr. Raghuram K. Shetty	6	6	100%
3	Mr. Omprakash Singh	7	7	100%
4	Mrs. Bhagavati Kalpesh Donga	7	7	100%
5	Mr. Roshan R. Shetty	3	3	100%

b) Meetings of the Audit Committee and Attendance thereof:

The committee met 4 (Four) times during the financial year ended March 31, 2026. These meetings were held on May 21, 2025, August 12, 2025, November 13, 2025 and February 10, 2026.

Sr. No.	Name of Director	No of Meetings entitled to attend	No of Meetings attended	% of attendance
1	Mr. Omprakash Singh	4	4	100%
3	Mr. Raghuram K Shetty	4	4	100%
2	Mrs. Bhagavati Kalpesh Donga	4	4	100%
(c) Meetings of the Nomination and Remuneration Committee and Attendance thereof: The committee met 2 (Two) times during the financial year ended March 31, 2026. These meetings were held on August 12, 2025 and March 27, 2026.
Sr. No.	Name of Director	No of Meetings entitled to attend	No of Meetings attended	% of attendance
1	Mr. Omprakash Singh	2	2	100%
2	Mr. Sadashiv K Shetty	2	2	100%
3	Mrs. Bhagavati Kalpesh Donga	2	2	100%

(d) Meetings of the Stakeholders Relationship Committee and Attendance thereof:

The committee met 1 (One) time during the financial year ended March 31, 2026 on March 27, 2026.

Sr. No.	Name of Director	No of Meetings entitled	No of Meetings	% of attendance
		to attend	attended
1	Mr. Omprakash Singh	1	1	100%
2	Mr. Raghuram K Shetty	1	1	100%
3	Mrs. Bhagavati Kalpesh Donga	1	1	100%

20. AUDITORS:

(a) Statutory Auditor:

The Members of the Company at the 33 rd Annual General Meeting (AGM) held on Tuesday, September 23, 2025 approved the appointment of M/s. N V C & Associates LLP., Chartered Accountants (Registration No. 106971W), as the Statutory Auditor of the Company for a period of 5 (five) years from the conclusion of 33 rd Annual General Meeting (AGM) till the conclusion of the 38 th (Thirty Eight) AGM.

EXPLANATIONS OR COMMENTS BY THE BOARD ON EVERY QUALIFICATION, RESERVATION OR ADVERSE REMARK OR DISCLAIMER MADE:

The Statutory Auditors Report for FY 2025-26 does not contain any qualification, reservation or adverse remarks.

The comments by the auditors in their report read along with information and explanation given in notes to accounts are self-explanatory and do not call for further explanation.

(b) Secretarial Auditors & Secretarial Audit Report:

In accordance with the provisions of Section 204 of the Act read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, M/s. GMJ & Associates, Practicing Company Secretaries bearing Peer Review No: 6140/2024, were appointed as the Secretarial Auditor of

the Company for a term of 5 (five) consecutive financial years, commencing from the financial year 2025-26 to the financial year 2029-30 to conduct Secretarial Audit of the Company, at the Annual General Meeting held on September 23, 2025. They have confirmed their eligibility and qualification required under the Act and the Listing Regulations for holding office, as the Secretarial Auditor of the Company.

The Secretarial Audit Report for the financial year 202526 is annexed herewith and marked as Annexure-C to this Report. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.

EXPLANATIONS OR COMMENTS BY THE BOARD ON EVERY QUALIFICATION, RESERVATION OR ADVERSE REMARK OR DISCLAIMER MADE:

The report of Secretarial Auditor is self-explanatory and does not contain any qualification, reservation, adverse remarks or disclaimer.

21. DETAILS OF FRAUD REPORTED BY AUDITORS:

During the year under review, the Auditors of the Company have not reported to the Audit Committee, under Section 143(12) of the Act, any instances of fraud committed against the Company by its officers or employees, therefore no detail is required to be disclosed under Section 134 (3)(ca) of the Act.

22. SECRETARIAL STANDARDS:

The Directors confirm that the Company is in compliance with applicable secretarial standards issued by Institute of Company Secretaries of India.

23. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

The Management Discussion and Analysis Report for the year under review, as stipulated under SEBI (LODR) Regulations is given separately and forms part of this 34 th Annual Report of the Company as Annexure-D .

24. INVESTOR EDUCATION AND PROTECTION FUND (IEPF):

Pursuant to the provisions of Section 124(5) of the Companies Act, 2013 read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, the dividend declared by the Company

for the financial year 2019-20 , which remains unpaid or unclaimed for a period of seven consecutive years, shall become due for transfer to the Investor Education and Protection Fund (IEPF) during the financial year 2026-27 .

Shareholders who have not yet encashed their dividend warrants for the financial year 2019-20 are requested to lodge their claims with the Company/Registrar and Share Transfer Agent at the earliest.

Further, pursuant to the provisions of Section 124(6) of the Companies Act, 2013 and the Rules made thereunder, all equity shares in respect of which dividend has remained unclaimed for seven consecutive years or more shall also be transferred by the Company to the IEPF Authority.

The Company has been regularly uploading the details of unpaid and unclaimed dividends on its website and also on the website of the Ministry of Corporate Affairs (MCA) in compliance with the aforesaid provisions.information in respect of such unclaimed dividend when due for transfer to the fund is given below:

Financial Year	Type of Dividend	Date of Declaration	Remained Unclaimed for 7 years (Due date shall be plus 30 days)	Amount lying in the Account as on 31.03.2026
2019-2020	Interim Dividend	11-02-2020	18-03-2027	84,024.50

Those Members who have so far not encashed their dividend warrants from the final dividend from F.Y. 20172018 onwards, may approach the Registrar and Share Transfer Agents, M/s. MUFG India Pvt. Ltd, for making their claim without any further delay as the said unpaid dividends shall be transferred to the Investor Education and Protection Fund of the Central Government pursuant to the provisions of Companies Act.

In terms of Section 124(6) of Companies Act, 2013 and the Rules notified there under, including amendments thereof, the shares in respect of which dividend has not been paid or claimed for a period of seven consecutive years or more, are required to be transferred by the Company to the IEPF Suspense Account.

Accordingly, the Company has transferred shares to IEPF Suspense Account in respect of which dividend has not been paid or claimed since 2016-17. The summary for the same is given below:

Name of Depository	Demat Account Maintained with	Account details
CDSL	SBICAP Securities	DP ID: 1204 7200
	Limited	Client ID: 1367 6780

the break-up/details of total number of shares transferred to Investor Education and Protection Fund (IEPF) is provided below:

Shares held with	Number of records	Number of shares (Quantity)
CDSL	01	200
NSDL	14	11491
Physical	60	10600
Total	75	22291

The details of unpaid/unclaimed dividend and number of shares transferred are available on our website: (www.daikaffil.com) .

Shareholders are requested to note that no claim shall lie against the Company in respect of any amounts which were unclaimed and unpaid for a period of seven years and transferred to Investor Education and Protection Fund of the Central Government. However, Shareholders may claim from IEPF Authority both unclaimed dividend amount and the shares transferred to IEPF Suspense Account as per the applicable provisions of Companies Act, 2013 and rules made thereunder.

25. OTHER DISCLOSURE:

a. Cost Records:

The provisions of Section 148(1) of the Companies Act, 2013 relating to maintenance of cost records are not applicable to the Company and accordingly the Company is not required to maintain such cost records

b. Change in the nature of business:

There has been no change in the Nature of Business during the year under review. However the Company has resumed its Operation of manufacturing of Chemical business during the period under review. Further no material changes or commitments have occurred between the end of the financial year and the date of this report which affect the financial statements of the Company.

c. Material Changes and Commitments, If Any affecting the Financial Position of the Company:

No material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to which this financial statements relate and the date of this report.

d. Deposits:

The Company has neither accepted nor renewed any deposits from public during the year nor has any outstanding Deposits in terms of Section 73 of the Companies Act, 2013. Further there were no Deposits which are not in compliance of the requirements of Chapter V of the Act.

e. Loans, Guarantees and Investments:

Details of Loans, Guarantees and Investments covered under the provision of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.

f. Annual Return:

Pursuant to Section 134(3)(a) of the Act, the Annual Report referred to in Section 92(3) of the Act read with Rule 12 of the Companies (Management and Administration) Rules, 2014, the Annual Return for the financial year ended March 31, 2026 is available on the Companys website at www.daikaffil.com .

g. Particulars of employees:

The Statement of Disclosure of Remuneration under Section 197 of the Companies Act, 2013 read Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure E .

h. Status of Listing Fees:

The Shares of the Company are continued to be listed on the BSE Limited (BSE). Listing Fees till date have been duly paid to BSE, where Companys shares are Listed.

i. Registrar and Share Transfer Agent:

M/s . MUFG Intime India Private Limited, C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai - 400 083 Tel No- 1800 1020 878 is the Registrar and Share Transfer Agent of the Company for the physical and Demat shares.

The members are requested to contact directly for any requirements.

j. Complaints relating to Child Labour, Forced Labour, Involuntary Labour, Sexual Harassment:

The Company has adopted a policy on prevention, prohibition and Redressal of Sexual harassment at workplace and has duly constituted an Internal Complaints Committee in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder. No case of child labour, forced labour, involuntary labour, sexual harassment and discriminatory employment was reported during the FY 2025-26. The Company has a policy on sexual harassment under which employees can register their complaints against sexual harassment. The policy ensures a free and fair enquiry with clear timelines.

During the financial year under review, the Company has not received any complaints of work place complaints, including complaints on sexual harassment.

k. Maternity benefit provided by the company under maternity benefit act 1961:

The Company confirms that it is fully aware of and remains committed to complying with the provisions of the Maternity Benefit Act, 1961. While there are currently no women employees on its rolls, the Company has appropriate systems and policies in place to ensure that all statutory benefits under the Act, including paid maternity leave, continuity of salary and service during the leave period, nursing breaks, and flexible return-to-work arrangements will be extended to eligible women employees as and when applicable. The Company remains committed to fostering an inclusive and legally compliant work environment.

l. Material Orders passed by Regulators, Courts or Tribunal:

There were no significant or material orders passed by the Regulators, Courts or Tribunal which impact the going concern status of the Company and the Companys operations in future.

m. Research and Development and Quality Control:

The activities of R & D consist of improvement in the process of existing products, decrease of effluent load and to develop new products and by-products.

The management is committed to maintain the quality control and it is the strength of the Company. All raw material and finished products and materials at various stages of process pass through stringent quality check for the better result and product.

26. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

As required under Section 134 (3) (m) of the Companies Act, 2013 read together with the Rule 8 of the Companies (Accounts) Rules, 2014 the relevant information is given below.

(A) Power and fuel Consumption

The information on Conservation of Energy, Technology Absorption, and Foreign Exchange Earnings and Outgo is provided in accordance with Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014.

The details are as follows:

Particulars	31.03.2026	31.03.2025
(1) Electricity
Purchased units	521649	188300
Total Amount	6504060/-	3080822/-
Rate per Unit (in )	12.46	16.36
(2) Own Generator
Fuel (Diesel) units	2000	640
Total Amount (in )	182160/-	59634/-
Rate per Liter (in )	91.08/-	93.17/-

(B) Technology Absorption:

The technology required for the Company is available indigenously.

(C) Foreign Exchange Earnings and Outgo:

( in Lakh)

Particulars	31.03.2026	31.03.2025
Earnings	0.43	2.77
Outgo	-	-

27. DIRECTORS RESPONSIBILITY STATEMENT:

In accordance with the provisions of Section 134(5) of the Companies Act, 2013 the Board hereby submits its responsibility Statement:

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

(b) The directors had selected such accounting policies 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 at the end of the financial year and of the profit and loss of the company for that period;

(c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(d) The directors had prepared the annual accounts on a going concern basis; and

(e) The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

28. DETAILS OF APPLICATION MADE OR PROCEEDING PENDING UNDER INSOLVENCY AND BANKRUPTCY CODE, 2016:

No application has been made under the Insolvency and Bankruptcy Code; hence the requirement to disclose the details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end of the financial year is not applicable.

29. DETAILS OF DIFFERENCE BETWEEN VALUATION AMOUNT ON ONE TIME SETTLEMENT AND VALUATION WHILE AVAILING LOAN FROM BANKS AND FINANCIAL INSTITUTIONS:

The requirement to disclose the details of difference between amount of the valuation done at the time of onetime settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof, is not applicable.

30. ACKNOWLEDGEMENTS:

Your Directors place on record their sincere thanks to bankers, business associates, consultants, and various Government Authorities for their continued support extended to your Companies activities during the year under review. Your Directors deeply appreciate the committed efforts put in by employees at all levels, whose continued commitment and dedication contributed greatly to achieving the goals set by your Company. Your Directors also acknowledges gratefully the shareholders for their support and confidence reposed on your Company.

For Daikaffil Chemicals India Limited

	Sadashiv. K. Shetty	Raghuram. K. Shetty
	Chairman	Managing Director
	DIN: 00038681	DIN:00038703
Date: August 14, 2026
Place: Mumbai