Deccan Health Care Ltd Directors Report

Dear Shareholders,

On behalf of the Board of Directors, it is my privilege to present the 30^th Annual Report of the Deccan
Health Care Limited, along with the Audited Financial Statement (Standalone & Consolidated) for
the Financial Year ended on 31 March 2026.

THREE DECADES OF BUTT TUNG A HFAITHIFR FUTURE

The presentation of this 30^th Annual Report marks an important milestone in the Companys
journey of three decades. Since its incorporation in 1996, Deccan Health Care Limited has
evolved into a leading nutraceutical and preventive healthcare company, committed to
developing innovative, science-based nutritional, wellness, personal care and healthcare
solutions. Guided by its vision of promoting preventive healthcare and improving the quality
of life, the Company has consistently focused on innovation, quality, regulatory compliance
and customer-centric growth while strengthening its presence in domestic and international
markets.

I. COMPANY BACKGROUND:

Deccan Health Care Limited (L72200TG1996PLC024351) was originally incorporated as "Deccan
Health Care Limited" at Hyderabad, Andhra Pradesh as a Public Limited Company under the provisions
of Companies Act, 1956 vide Certificate of Incorporation dated 14 June 1996 bearing Registration
Number 01-24351 issued by the Registrar of Companies, Andhra Pradesh, Hyderabad. Subsequently,
our Company was converted into a private limited company, and the name of our Company was changed
to "Deccan Health Care Private Limited" vide a Fresh Certificate of Incorporation dated 12 June 2009,
issued by the Assistant Registrar of Companies, Andhra Pradesh. Further, our Company was converted
into a public limited company pursuant to special resolution passed by the members in Extraordinary
General Meeting held on 12 August 2017 and the name of our Company was changed to "Deccan Health
Care Limited" vide a Fresh Certificate of Incorporation dated 31 August 2017, issued by the Registrar
of Companies, Hyderabad. The equity shares of the Company were listed on BSE SME Platform since
31 December 2018. The company had migrated from SME Platform of BSE Limited to the BSE Main
Board dated 18 May 2023.

II. FINANCIAL HIGHLIGHTS:

The summarized financial highlights of the Company for the year ended 31 March 2026 vis-a-vis
the previous year are as follows:

(Rs. in Lakhs except EPS)

Particulars	Standalone		Consolidated
	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25
Revenue from Operations	8917.10	7513.19	8190.48	7505.79
Other Income	0.87	0.57	0.87	0.57
Total Revenue	8917.97	7513.76	8191.35	7506.36
Cost of Material Consumed	6292.45	4096.37	5265.76	4088.97

 

Changes in Inventories of Finished Goods and Work-in-Progress	(227.54)	660.78	(227.54)	660.78
Employee Benefit Expenses	524.53	434.82	533.77	444.21
Other Expenses	1839.98	2002.22	2109.80	1996.70
Finance Cost	36.61	7.39	36.63	7.42
Depreciation and Amortization Expenses	146.36	145.26	146.36	145.26
Total Expenses	8612.39	7346.84	7864.78	7343.34
Profit / (Loss) Before Tax	305.58	166.92	326.57	163.02
Tax Expenses:
Provision for Income Tax	88.54	57.01	89.81	57.01
Less: MAT Credit Entitlement	-	-	-	-
Deferred Tax	(12.00)	(9.88)	(12.00)	(9.86)
Profit / (Loss) after Tax	229.04	119.79	248.76	115.87
Earnings Per Share:
Basic	0.93	0.56	1.01	0.54
Diluted	0.93	0.47	1.01	0.45

III. STATE OF TIIF. COMPANYS AFFAIRS

The Company is operating into a single segment of manufacturing of nutraceutical products. During the
period under review, there is no change in the nature of business of the Company.

Standalone Operational Performance:

On a Standalone basis, Revenue has grown by approximately 18.69% for the year ended 31^st March
2026, standing at Rs 8,917.10 Lakhs compared to Rs 7,513.19 Lakhs in the corresponding period last year

The Company delivered a strong improvement in profitability during the period, with Profit After Tax
(PAT) increasing by 91.21% to Rs229.05 Lakhs, compared to Rs119.79 Lakhs in the corresponding period
of the previous year. Basic Earnings Per Share (EPS) also increased by 66.01%, from Rs0.56 to Rs0.93,
reflecting improved earnings performance.

Consolidated Operational Performance:

Revenue from Operations has grown by approximately 9.12% for the year ended 31st March
2026, standing at Rs 8,190.48 Lakhs compared to Rs 7,505.79 Lakhs in the corresponding period
last year.

Profit After Tax reflects a growth of approximately 114.69%, increasing to Rs248.76 Lakhs from
Rs115.87 Lakhs in the corresponding period last year.

IV. RESERVES & DIVIDEND

During the year, the Reserve & Surplus of the company stands at 8483.79 lakhs. Company has not
apportioned any amount to other reserves. The profit earned during the year has been carried to the
balance sheet of the Company.

In view of the future expansion plans, Board of Directors have not recommended any divided for the
financial year ending 31 March 2026.

V. SHARE CAPITAL:

During the years, the following changes have taken place in the authorized and paid-up share capital of
the Company:

- Authorized Capital:

During the year under review, the Authorized Share Capital of the Company remained unchanged
at Rs. 26,00,00,000/- (Rupees Twenty-Six Crore only) divided into 2,60,00,000 (Two Crore Sixty
Lakh only) Equity Shares of Re. 10/- (Rupees Ten each).

Further, there has been no change in the Authorized Share Capital of the Company from the end of
the Financial Year up to the date of this report.

- Issued, Subscribed, Paid-Up Capital & Allotments

As on 31 March 2026, the Issued Capital of the company is Rs. 24,74,91,800 and the listed capital
of the Company is Rs. 23,42,55,130/- (Rupees Twenty-Three Crore Forty-Two Lakh Fifty-Five
Thousand One Hundred Thirty Only) divided into 2,34,25,513 (Two Crore Thirty-Four Lakh
Twenty-Five Thousand Five Hundred Thirteen) Equity Shares of Rs. 10/- each.

During the year ended on 31^st March 2026 Company has issued 7,15,000 Equity shares on 1st
April 2025 pursuant to the conversion of convertible warrants at an Issue price of Rs. 30.00 per
Warrant (including face value of Rs. 10.00 per Equity share and Security Premium of Rs. 20.00
per equity share), aggregating to Rs.214.50/- Lakhs from which 25% amount received on Issue of
Warrants and the funds has been utilised as per object.

Further, during the year ended 31^st March 2026, the Company allotted 6,08,667 Equity Shares on
11th April 2025, pursuant to the conversion of convertible warrants, at an issue price of Rs. 30.00
per warrant, comprising Rs. 10.00 towards the face value of each Equity Share and Rs. 20.00
towards Securities Premium. The total consideration amounted to Rs. 182.60 lakhs.

Since trading approval for 13,23,667 equity shares is in approval process on BSE Limited, these
shares, although forming part of the Issued and Paid-up Capital, have not been admitted to trading.
This has resulted in a difference between the Issued Capital and Listed Capital of the Company to
the extent of 13,23,667 equity shares

There was no reduction of share capital or buy back of shares or changes in capital transaction
resulting from restructuring. Also, the Company has not issued equity shares with differential
rights as to dividend, voting or otherwise or sweat equity shares to its directors or employees. The
Company does not have any Employees Stock Option Scheme for its Employees/Directors.

VI. DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to Section 134(5) of the Act, the Board of Directors, to the best of its knowledge and
ability, confirm that:

a) in the preparation of the Annual Accounts, the applicable Accounting Standards have been
followed and that no material departures have been made from the same;

b) the Directors have selected such accounting policies as mentioned in Notes to the Financial
Statements have been selected 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 of March 31, 2026, and of the profit of the Company for the year
ended on that date;

c) the Directors have taken proper and sufficient care has been taken 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 have prepared the Annual Accounts on a going concern basis;

e) the Directors have laid down Internal Financial Controls to be followed by the Company and
that such Internal Financial Controls are adequate and were operating effectively; and

f) the Directors have devised proper systems to ensure compliance with the provisions of all
applicable Laws and that such systems were adequate and operating effectively.

VII. AUDITORS AND AUDIT REPORT

- STATUTORY AUDITORS

The Statutory Audit of the Company for the financial year 2025-26 will continue to be carried out
by M/s. Keyur Shah & Associates, Chartered Accountants (Firm Registration No. 333288W).
Their appointment, approved by the members at the 27^th Annual General Meeting, is valid until the
conclusion of the 32nd Annual General Meeting. The Auditors have furnished a confirmation of
their eligibility in terms of Section 141 of the Companies Act, 2013 and the rules made thereunder.

Further, the report of the Statutory Auditors along with notes is enclosed to this report. The
statutory auditors report does not contain any qualifications, reservations, or adverse remarks or
disclaimer. Therefore, no explanations or comments by the Board is required.

No fraud has been reported by the Statutory Auditors under Section 143(12) of the Companies
Act, 2013 and the rules made thereunder.

- SECRETARIAL AUDITORS

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 had
appointed M/s. M. R. Bhatia & Co., Company Secretaries, to undertake the Secretarial Audit of
the Company for the Financial Year 2025-26. The Secretarial Audit Report (Form MR-3) is
annexed herewith as Annexure-A.

The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
Therefore, no explanations or comments by the Board is required.

No fraud has been reported by the Secretarial Auditors under Section 143 (12) of the Companies
Act, 2013 and the rules made thereunder.

VIII. POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION:

The Board has, on the recommendation of the Nomination & Remuneration Committee,
formulated a policy on appointment and remuneration of Directors, Key Managerial personnel and
Senior Management personnel, including the criteria for determining qualifications, positive
attributes, independence of a director and other matters, as required under sub-section (3) of
Section 178 of the Companies Act, 2013.

The policy on remuneration and other matters provided in Section 178(3) of the Act has been
disclosed in the Corporate Governance Report, which is a part of this report and is also available
on the Companys website at www.deccanhealthcare.co.in

IX. PARTICULARS OF EMPLOYEES:

The information required under Section 197 of the Companies Act, 2013 read with Rule 5(1) of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms an
integral part of this Report is attached as Annexure B and B(i).

The statement containing particulars of employees as required under section 197 of the Companies
Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, will be provided upon request. In terms of Section 136 of the Companies
Act, 2013, the Report and accounts are being sent to the members and others entitled thereto.

X. RISK MANAGEMENT

A well-defined risk management mechanism covering the risk mapping and trend analysis risk
exposure potential impact and risk mitigation process is in place. The objective of the mechanism
is to minimize the impact of risks identified and taking advance actions to mitigate it. The
mechanism works on the principles of probability of occurrence and impact if triggered. A detailed
exercise is being carried out to identify evaluate monitor and manage both business and non-
business risks. During the year under review, the Management reviewed the risk management and
minimization procedure adopted by the Company covering the business operations of the
Company.

XL SUBSIDIARY COMPANIES:

The details of subsidiaries of the Company are given below:

Sr. Name of the Subsidiaries and No. Address of Registered Office	Place of incorporation	Nature of Business	Date of Incorporation	Statutory Auditor
1. Beyoungstore Private Limited (Wholly Owned Subsidiary) 6-3-347/17/5/ A, Dwarakapuri Colony Punjagutta, Hyderabad TG 500082 India	India	E- Commerce Store for dealing in Healthcare and Nutraceutical Products etc.	12 May 2020	Keyur Shah & Co
2. Deccan Better Living INC* 896 S State ST Unit 1155 Dover, DE 19901, Kent USA	USA	Retailing of Nutraceutical Pills / Tablets / Powders / Items (Hardgel as well as Softgel)	02 February 2024	NA

During the year, the Board of Directors reviewed the affairs of the subsidiaries. There has been no
material change in the nature of the business of the subsidiaries.

Further, a statement containing the salient features of the financial statements of its respective
subsidiaries of the Company in the prescribed format i.e. Form AOC-1 is annexed to this Report
as Annexure C.

Further, pursuant to the provisions of Section 136 of the Act, the financial statements of the
Company, consolidated

Financial Statements along with relevant documents and separate audited financial statements in
respect of subsidiaries, are available on the Companys website at
https://deccanhealthcare.co.in/corDorate-information/Disclosures-under-Regulation.aspx

Except above, the Company does not have any Subsidiary Companies and Joint Venture or
Associate Companies, during the year under review.

Xn. INTERNAL FINANCIAL CONTROL SYSTEMS AND ADEQUACY THEREOF

The Companys Board of Directors is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered
Accountants of India ("ICAI"). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for ensuring
the orderly and efficient conduct of its business, including adherence to respective companys
policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of reliable
financial information, as required under the Companies Act, 2013.

Xin. CORPORATE GOVERNANCE

A separate report on Corporate Governance and Certificate from the Practicing Company
Secretary regarding compliance of condition of corporate governance, as stipulated under SEBI
(LODR) Regulations, 2015 is forming a part of this Annual Report. A Certificate of CFO of the
Company in terms of the SEBI (LODR) Regulations, 2015, inter-alia, confirming the correctness
of the financial statements and cash flow statements, adequacy of the internal control measures
and reporting of matters to the Audit Committee, is also annexed to report on Corporate
Governance.

XIV. TRANSACTION WITH RELATED PARTIES:

All the Related Party Transactions entered during the financial year were on an Arms Length basis
and in the Ordinary Course of Business. There are no material significant Related Party
Transactions with Promoters, Directors, Key Managerial Personnel (KMP) which may have a
potential conflict with the interest of the Company at large, were entered during the year by your
Company. The disclosure of Related Party Transactions as required under Section 134(3)(h) of the
Companies Act, 2013 in Form AOC-2 as annexed in Annexure D. Further, prior approval of the
Audit Committee is obtained for the transactions.

The details of the related party transactions for the financial year 2025-26 is given in notes of the
financial statements which is part of Annual Report.

XV. HUMAN RESOURCES:

The Company believes that quality of its employees is the key to success in long run. The
Company continues to have cordial relations with its employees.

XVI. WEBSITE:

As per Regulation 46 of SEBI (LODR) Regulations, 2015, the Company has maintained a
functional website namely www.deccanhealthcare.co.in containing basic information about the
Company.

XVH. NON-EXECUTIVE DIRECTORS COMPENSATION AND DISCLOSURES

Non-Executive Directors, including Independent Directors are paid sitting fees in accordance with
the applicable Laws. During the financial year 2025-26, the Company has paid sitting fees of
Rs. 2,50,000/- to Independent Directors for attending Board Meetings

XVIH. COMPLIANCE WITH SECRETARIAL STANDARDS:

The Company has devised proper systems to ensure compliance with the provisions of all
applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that
such systems are adequate and operating effectively. During the year under review, the Company
has complied with the applicable Secretarial Standards issued by the Institute of Company
Secretaries of India, New Delhi.

XIX. PROHIBITION OF INSIDER TRADING

The Company has devised a Code of Conduct of Insider Trading Regulations which is applicable
to all the Designated Persons of the Company who are expected to have access to the unpublished
Price Sensitive information relating to the Company and is available on the website of the
Company at www.deccanhealthcare.co.in.

The said Code lays down guidelines which advise them on procedures to be followed and
disclosures to be made while dealing with the Shares of the Company.

XX. DISCLOSURE OF ACCOUNTING TREATMENT

In the preparation of the financial statements, the Company has followed the Accounting Standards
issued by Institute of Chartered Accountants of India. The significant accounting policies, which
are consistently applied, have been set out in the Notes to the Accounts. Business risk evaluation
and management is an ongoing process within the organization. The Company has adequate
systems of internal control to ensure reliability of financial and operational information and
compliance with all statutory /regulatory compliances.

XXL VIGIL MECHANISM:

The Company has adopted a Whistle Blower Policy establishing vigil mechanism, to provide a
formal mechanism to the Directors and Employees to report their concerns about unethical
behavior, actual or suspected fraud or violation of the Companys Code of Conduct or ethics
policy. The Policy provides for adequate safeguards against victimization of employees who avail
of the mechanism. This Policy is available on the Companys website at
www.deccanhealthcare.co .in.

XXH. STATUTORY DISCLOSURES

i) 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 Companys website at

https://deccanhealthcare.co.in/corporate-information/compliances-documents.aspx.

ii) Insurance - The Company is in process of identifying a suitable insurance policy.

iii) Cost records -The maintenance of cost records as specified by the Central Government under
sub-section (1) of section 148 of the Companies Act, 2013, is not required by the Company and
accordingly such accounts and records are not required to be made and maintained.

iv) Material Changes & Commitments - No other material changes and commitments affecting
the financial position of the Company have occurred between the end of the financial year of
the company to which the financial statements relate and the date of the report.

v) Management Discussion and Analysis- Management Discussion and Analysis Report as
required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
forms part of this Annual Report.

vi) Loans, Guarantees and Investments - The particulars of loans, guarantees and investments as
per Section 186 of the Act by the Company, have been disclosed in the financial statements.

vii) Credit Rating - During the Financial Year, there was no credit rating being obtained by the
Company.

viii) Deposits From Public - The Company has not accepted any deposits from public and as such,
no amount on account of principal or interest on deposits from public was outstanding as on the
date of the balance sheet.

ix) Proceedings initiated/pending against your company under the Insolvency and
Bankruptcy Code, 2016 - There are no proceedings initiated/pending against your Company
under the Insolvency and Bankruptcy Code, 2016 which materially impact the Business of the
Company.

x) Significant and material orders passed by the regulators or courts or tribunals impacting
the going concern status of the companys operation - There has been no significant and
material Order passed by the Regulators or Courts or Tribunals in the FY 2024-25, impacting
the going concern status of the Companys operations.

xi) One time settlement and valuation - The details of difference between amount of the valuation
done at the time of one-time settlement and the valuation done while taking loan from the Banks
or Financial Institutions along with the reasons thereof was not applicable to the company during
the Financial Year.

ACKNOWLEDGEMENTS:

Your directors wish to place on record their appreciation of the contribution made by the
employees at all levels, towards the continued growth and prosperity of your company. Your
directors also wish to place on record their sincere thanks to the Banks and various Government
Authorities for the support and co-operation extended to the Company. Your directors are
especially grateful to the shareholders for reposing their trust and confidence in the Company.

For & on behalf of Board of Directors

Dr. Minto Purshotam Gupta

Chairman and Managing Director
DIN: 00843784

Date: 5 September 2026
Place: Hyderabad