Elango Industries Ltd Directors Report

Dear Members,

The Board presents the Thirty-Sixth (36^th) Annual Report together with the Audited Financial

Statement and the Auditor s Report for the Financial Year ended March 31, 2025

FINANCIAL HIGHLIGHTS

The financial highlights are set out below:

		Rs in Lakhs
Particulars
	2024-25	2023-24
Net Sales/ Income	95.92	258.02
Other Income	0.01	0.62
Total Income	95.92	258.65
Profit/Loss Before Depreciation and Tax	(19.74)	(11.67)
Depreciation	1.60	2.08
Profit/Loss before Tax	(21.34)	(13.75)
Less : Provision for Tax	(0.35)	(0.72)
Profit/Loss after Tax	(21.69)	(14.48)
Add : Profit/ Loss brought forward	(33.52)	(19.04)
Changes during the year	-	-
Profit/Loss Carried to Balance Sheet	(55.21)	(33.52)

PERFORMANCE:

During the financial year 2024 25, the Company recorded a total income of Rs. 95.92 lakhs and reported a loss of Rs. 21.69 lakhs, compared to Rs. 14.48 lakhs in 2023 24.

India is anticipated to experience an unprecedented 8-10% increase in electricity demand in 2025, driven by extreme heatwaves and significant growth in both industrial and residential power consumption. As the fastest-growing major economy globally, India is expected to match the rapid 8-10% growth in electricity consumption observed in 2025.

The Company continues to explore opportunities in the renewable energy sector, in line with its long-term strategy to diversify and strengthen its operations. As part of this initiative, the Company has identified Mayladuthurai , Tamilnadu as a suitable location for setting up a solar power generation project with a proposed capacity of 20 MW and an estimated investment of approximately Rs.100 crore.

The location offers the advantage of existing evacuation facilities, and the Company has initiated discussions with the relevant Government authorities for obtaining the necessary clearances. Approvals for the project are expected before the end of March 2026.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the requirements under Section 134(5) of the Companies Act, 2013 with respect to Directors

Responsibility Statement, your Directors confirm that they have:

a) followed in the preparation of the Annual Accounts, the applicable Accounting Standards and given proper explanation relating to material departures ; if any b) 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 Account of the Company for that period; c) taken proper and sufficient care for maintenance of adequate accounting records for the year ended March 31, 2025 in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for the prevention and detection of Fraud and other irregularities; d) prepared the Annual Accounts on an ongoing basis; e) 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) Devised proper systems to ensure compliance with the provisions of all applicable laws and that such system were adequate and operating effectively.

MANAGEMENT DISCUSSSION AND ANALYSIS

Pursuant to Schedule V of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 Management Discussions and Analysis is given separately in Annexure- 1 and forms part of this report.

BUSINESS RESPONSIBILTY REPORT

Business Responsibility Report is not applicable to our Company as it doesn t form part of top 1000 companies based on market capitalisation.

STATEMENT PURSUANT TO LISTING AGREEMENTS

The Company s securities are listed with BSE Limited. The company confirms that it has paid the Annual

Listing Fees for the year 2025-26 in time and there were no arrears.

CORPORATE GOVERNANCE

As per Regulation 15(2)(a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, compliance with the provisions relating to Corporate Governance is exempt for listed entities whose paid-up share capital does not exceed Rs. 10 crore and net worth does not exceed Rs. 25 crore, as on the last day of the preceding financial year.

It is informed that the provisions of Corporate Governance under Regulation 27 of the said Regulations are not applicable to the Company, as its paid-up share capital and net worth as on March 31, 2025, fall below the prescribed thresholds.

DIVIDEND

Considering financial performance and ensuring liquidity for operations for the financial year 2024-25, the Directors have decided not to recommend any dividend to the shareholders for the financial year 2024-25

BOARD MEETINGS

During the Financial Year, four meetings of the Board of Directors were held:

1. May 27, 2024

2. August 02, 2024

3. November 06, 2024

4. February 13, 2025

The intervening gap between the meetings was within the period as prescribed under the Companies Act, 2013. All the directors attended all the meetings.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

As of the date of this report, the Company s Board comprises four directors, including two independent directors, one Managing Director, and one Non-Executive Director.

Mr. S. A. Premkumar (DIN: 00342952) is due to retire by rotation at the upcoming Annual General Meeting. He is eligible for reappointment and has expressed his willingness to continue in his role. The Directors recommend the reappointment of Mr. S. A. Premkumar to the Board.

Based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors, at its meeting held on 13th August 2025, re-appointed Mr. S. Elangovan as the Managing Director of the Company for a further term of five years, effective from 13th August 2025 to 12th August 2030, subject to the approval of the Members and such other approvals as may be required.

The Board recommends the passing of the ordinary resolution as set out in Item No. 4 of the Notice for appointment of Mr. S. Elangovan as Managing Director.

The Board of Directors, based on the recommendation of the Nomination and Remuneration Committee, at its meeting held on 6th August 2025, appointed Mrs. Ashitha K (DIN: 07233606) as an Independent Non-Executive woman Director of the Company not liable to retire by rotation, in accordance with the provisions of Section 149 of the Companies Act, 2013, for a term of five consecutive years commencing from 6th August 2025 to 5th August 2030.

The Board recommends the passing of the Special Resolution as set out in Item No. 5 of the accompanying Notice for the appointment of Mrs. Ashitha K as an Independent Non-Executive woman Director.

Based on the recommendation of the Nomination & Remuneration Committee, it was proposed to appoint Mr. G. Maheswara Reddy (DIN: 11253588), as an Independent, Non- Executive Director of the Company, not liable to retire by rotation, in accordance with the provisions of Section 149 of the Companies Act, 2013, for a term of five consecutive years with effect from 29th September, 2025 to 28th September , 2030 .

The Board recommends the passing of the Special Resolution as set out in Item No. 6 of the accompanying Notice for the appointment of Mr. G. Maheswara Reddy as an Independent, Non-Executive Director

In compliance with Section 203 of the Companies Act, 2013, the following individuals are designated as the Whole-Time Key Managerial Personnel (KMP) of the Company as of the date of this report: Mr. S. Elangovan, Managing Director; Mr. M. Nagarajan, Chief Financial Officer; and Mr Nitesh Kumar Sharma, Company Secretary.

INDEPENDENT DIRECTORS

In accordance with Section 149(7) of the Companies Act, 2013 each Independent Director has confirmed to the Company that he / she meets the criteria of independence as laid down in Section 149(6) of the Companies Act, 2013 and Regulation 25 of the Listing Regulations.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The provisions of Section 135 of the Companies Act 2013 pertaining to Corporate Social Responsibility are not applicable to the Company.

EVENTS SUBSEQUENT TO THE DATE OF FINANCIAL STATEMENTS

There are no such material events subsequent to the date of financial statement.

SECRETARIAL AUDIT

Pursuant to the provisions of Section 204 (1) of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed, a Practicing Company Secretary to undertake the Secretarial Audit of the Company for the Financial year 2024-25. The

Secretarial Auditors have confirmed they are not disqualified to be appointed as the Secretarial Auditors of the Company for the year ending 31st March, 2024. The Secretarial Audit Report is annexed to this report as

Annexure - 4.

There are no qualifications or adverse remarks in the Secretarial Auditors Report which require any clarification/ explanation.

During the year under review, the Secretarial Auditors had not reported any matter under Section 143 (12) of the Act therefore no detail is required to be disclosed under Section 134 of the Act

Pursuant to the provisions of Section 204 and other applicable provisions of the Companies Act, 2013 and in terms of Regulation 24A of the Listing Regulations, with effect from 1st April 2025, your Company is required to appoint a Practicing Company Secretary for not more than one term of five consecutive years or a firm of Practicing Company Secretaries for not more than two terms of five consecutive years, as a Secretarial Auditor, with the approval of the members at its AGM and such Secretarial Auditor must be a peer reviewed company secretary and should not have incurred any of the disqualifications as specified under the Listing Regulations.

Further, as per the said Regulation, any association of the individual or the firm as the Secretarial Auditors of the Company before 31st March 2025 shall not be considered for the purpose of calculating the tenure of the Secretarial Auditors taking into account the above requirements, the Board, on the recommendation of the Audit Committee, has approved the appointment of Mr. S. Ganesan Practicing Company Secretary as the Secretarial Auditors of the Company for a term of five consecutive years, to hold office from the conclusion this Annual General Meeting ( AGM ) till the conclusion of 41^st AGM of the Company to be held in the Year 2030 covering the period from the financial year ending 31st March 2026 till the financial year ending 31st March 2030, subject to the approval of the members at the ensuing 33^rd AGM of your Company.

The recommendation followed a detailed evaluation of proposals received by the Company and consideration of factors such as capabilities, independence, industry experience, subject matter expertise and past association with the Company.

The Board recommends the passing of the Ordianry Resolution as set out in Item No. 7 of the accompanying Notice for the appointment of Mr. S. Ganesan Practicing Company Secretary as the Secretarial Auditors of the Company for a term of five consecutive years

STATUTORY AUDITORS

M/s. P. Pattabiramen & Co, Chartered Accountants, [Firm Registration No.002609S], Chennai were appointed as the Statutory Auditors of the Company at the Extra Ordinary General Meeting held on 31^st Annual General Meeting of the Company held on 30^th September, 2020 to hold office for a term of five years till the conclusion of 36^th Annual General Meeting of the Company. The Board was authorized to fix such remuneration as may be recommended by the Audit Committee in consultation with the Auditors.

Accordingly, tenure of statutory auditors expired by the financial year ended 31st March 2025. Company has appointed M/s. P. Pattabiramen & Co, Statutory auditors for another term of five years from the conclusion of this Annual General Meeting till the conclusion of 41^st Annual General Meeting of the Company

Company has received their written consent and a certificate that they satisfy the criteria provided under Section 141 of the Act and that the appointment, if made, shall be in accordance with the applicable provisions of the Act and rules framed thereunder

The Report given by M/s. P. Pattabiramen & Co on the financial statements of the company for the financial year 2024-25 contains a qualified opinion and a Statement of Impact on Audit Qualification has been submitted by the Company to the Stock Exchange.

The Audit Report given by M/s. P. Pattabiramen & Co on the financial results for the quarter and year ended March 31, 2025 was approved by the Board of Directors in their meeting held on 23^rd May, 2025 .

The Statutory Audit report for the financial year 31^st March, 2025 contains observation and clarification by the Board is given as under:

Auditors Observation	Managements Reply
1. Based on information provided to us by management, the Standalone Quarterly Financial Statements consists of a Rs.1,09,96,636/- under Other Non-Current	1. The management is in the process of recovering the electricity subsidy amounting to Rs.1,09,96,636/-. Hence the same is considered as recoverable.
Assets Electricity Subsidy. As per explanations received; this is Electricity Subsidy receivable pending for a long period. In the absence of adequate information with regard to their present status, we are unable to ascertain the recoverability of this balance.	2. The Company could not obtain confirmation from its two related companies since the same is under Corporate Insolvency Resolution Process (CIRP). The balance for one of the related company is Nil and the balance for M/s. Kaveri Gas Power Private Limited is Rs. 3,16,88,271/- which is recoverable.
2. Balance Confirmations and supporting for transactions with some of the Companies M/s. Kaveri Gas Power Private Limited outstanding balance Rs.3,16,88,271/- and M/s. Cauvery Power Generation Private Limited outstanding balance Rs.Nil, who are related parties are to be obtained and reconciled	Any settlement of the above claim will not have any material impact on the financial statements.

INTERNAL AUDITOR

The Company has appointed qualified Chartered Accountants as the Internal Auditor of the Company for the financial year 2025-26

The Internal Auditors carry out audit as per the audit plan defined by the Audit Committee and regularly updates the committee on their internal audit findings at the Committee s meetings. The Internal Auditors were satisfied with the management response on the observation and recommendations made by them during the course of their audit and have expressed satisfaction with the internal systems, controls and process followed by the Company.

COST AUDITOR

In terms of Section 148 of the Companies Act, 2013 read with Companies (Cost records and Audits) Rules, 2014, as amended from time to time the business activities of the company do not fall under the scope of mandatory cost audit.

AUDIT COMMITTEE

The Audit Committee consists of three Directors, Viz. Mr. S. A. Premkumar, Dr. M. Ramasamy and Ms. Preethi Natarajan. During the year, four meetings of the Audit Committee were held:

1. May 27, 2024

2. August 02, 2024

3. November 06, 2024

4. February 13, 2025

The Board of Directors have reconstituted the Audit Committee on 13^th August, 2025 consisting of three Directors, Viz. Mr. S. A. Premkumar, Mrs. Preethi Natarajan and Asitha K

Dr. M. Ramasamy ceased to be a Member of Audit Committee with effect from 28^th June, 2025 due to his tenure expired

All the above three Directors attended the above four meetings. All the recommendations made by the Audit Committee were accepted by the Board of Directors.

NOMINATION AND REMUNERATION COMMITTEE

The Nomination and Remuneration Committee has been empowered and authorized to exercise powers as entrusted under the provisions of Section 178 of the Companies Act, 2013. The Nomination and Remuneration Committee comprises of three directors namely, Mr. S. A. Premkumar, Mrs Preethi Natarajan and Dr. M. Ramasamy.

The Board of Directors have reconstituted the Nomination and Remuneration Committee on 13^th August, 2025 consisting of three Directors, Viz. Mr. S. A. Premkumar, Mrs. Preethi Natarajan and Mrs. Asitha K

Dr. M. Ramasamy ceased to be a Member of the Nomination and Remuneration Committee with effect from 28^th June, 2025 due to his tenure expired

The Committee met once during the year viz: 10^th August, 2023 for consideration, approval and acceptance of resignation/appointment of CFO etc. The above three Directors attended all the meetings of the Nomination and Remuneration Committee.

STAKEHOLDERS RELATIONSHIP COMMITTEE

The committee is constituted in line with the provisions Section 178 of the Companies Act, 2013 to consider and resolve the grievances of security holders; and consider and approve issue of share certificates, transfer and transmission of securities, etc. Mr. S. A. Premkumar and Mr. S. Elangovan form part of the Stakeholder Relationship Committee.

Dr. M. Ramasamy ceased to be a Member of the Stakeholder Relationship Committee with effect from 28^th June, 2025 due to his tenure expired

The Board of Directors have reconstituted the Stakeholder Relationship Committee on 13^th August, 2025 consisting of three Directors, Viz. Mr. S. A. Premkumar, Mrs. Preethi Natarajan and Mrs. Asitha K

During the year, meeting was held on 26^th April, 2024, 27^th November, 2024 and 4^th March, 2025. All the Members were present in all the meetings.

DIRECTORS/ KMP REMUNERATION

The Managing Director and Executive Director do not draw any salary from the company. It is hereby affirmed that the remuneration of Directors and Key Managerial Personnel are as per the Remuneration Policy of the Company.

Independent Non-Executive Directors are appointed for their professional expertise in their individual capacity.

RELATED PARTY TRANSACTIONS

All the transactions with the related parties were entered into by the Company during the period under review were in the ordinary course of business and at arm s length basis. Prior omnibus approval is obtained for related party transactions which are of repetitive nature and entered in the ordinary course of business and at arm s length. All related party transactions are placed before the Audit Committee for review and approval. The Related Party Disclosure in Form No AOC-2 is attached with this report as

Annexure -3

The Company is neither a holding company nor a subsidiary Company and hence the disclosure under Regulation 34(3) and 53(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, are not furnished.

GENERAL SHAREHOLDER INFORMATION

	Monday, September 29, 2025 at 11.30 am
Annual General Meeting:
	through VC/OAVM facility
	Registered Office: No. 5, Ranganathan Gardens, 15th Main Road
Deemed Venue:
	Extension, Anna Nagar, Chennai 600 040
Financial year:	April 1, 2024 to March 31, 2025
	Tuesday,23rd September, 2025 to
Book Closure:
	Monday, 29th September, 2025 (both days inclusive)
	From 9.00 a.m. on Friday, 26th September, 2025 up to 5.00 p.m.
E-Voting Period:
	on Sunday, 28th September, 2025
Cut-off date	19th September, 2025
Listing on Stock Exchange:	BSE Limited
Registrar and Share Transfer Agent:	Cameo Corporate Services Limited
ISIN/Scrip code	INE594D01018 Scrip Code : 513452

During the year 2024-25, we continued the sustainability initiative with the aim of going green and minimizing our impact on the environment. Like the previous year, this year too, we are publishing only the statutory disclosures in the print version of the Annual Report. Additional information is available on our website, www.elangoindustries.com. Electronic copies of the Annual Report 2024-25 and Notice of the 36^th AGM are sent to all members whose email addresses are registered with the Company / Depository Participant(s)

Pursuant to the various circulars issued by the Ministry of Corporate Affairs in 2021, 2022,2023, 2024 and 2025 collectively named as MCA circulars in respect of holding of AGM through Video Conferencing and SEBI Circulars also in respect of holding of AGM through Video Conferencing and in the recent Circular dated 25th September 2023 and 19th September 2024, respectively, and other circulars issued in this respect ("MCA Circulars") allowed, inter-alia, to conduct AGM through VC/ OAVM facility Hence we conduct our 36^th AGM through video conferencing. The deemed venue for the 36^th AGM shall be the Registered Office of the Company.

In terms of the MCA Circulars since the physical attendance of Members has been dispensed with, there is no requirement of appointment of proxies. Accordingly, the facility of appointment of proxies by Members under Section 105 of the Act will not be available for the 36^th AGM. However, in pursuance of Section 112 and Section 113 of the Act, representatives of the Members maybe appointed for the purpose of voting through remote e-Voting, for participation in the 36^th AGM through VC/OAVM Facility and E-Voting during the 36^th AGM.

The Notice of the 36^th AGM and Annual Report for the year 2025 will be available on the website of the Company at www.elangoindustries.com. and on the website of the BSE Limited at www.bseindia.com for download

The Company is providing remote E-voting facility to all members to enable them to cast their votes electronically on all resolutions set forth in the Notice. This is pursuant to section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Rules, 2014. The instructions for remote E-voting are provided in the Notice.

Members are requested to read the general instructions for accessing and participating in the 36^th AGM through VC/OAVM Facility and voting through electronic means including remote e-Voting as set out in the Notice of 36^th AGM

BOARD EVALUATION

The Companies Act and Listing Regulations relating to Corporate Governance contain provisions on evaluation of the performance of the Board and its Committees as a whole and Directors including Independent Directors, Non-Independent Directors and Chairperson individually. In pursuant thereof, annual evaluation of performance of the Board, working of its committees, contribution and impact of individual directors has been carried out through a questionnaire for peer evaluation on various parameters.

PARTICULARS OF EMPLOYEES

The statement containing particulars in terms of Section 197(12) of the Companies Act, 2013 read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this report and is appended herewith as Annexure- 2 to the Boards report.

INFORMATION ABOUT SUBSIDIARY/ HOLDING/ JV/ ASSOCIATE COMPANY

The company has no subsidiaries, holding, joint venture or associate company.

OTHER DISCLOSURES

NATURE OF BUSINESS OF THE COMPANY

There has been no change in the nature of the business of the company during the year in review.

DEPOSITS

During the year, the Company did not accept any deposits from the public.

EXTRACT OF ANNUAL RETURN

In terms of Section 92(3) of the Companies Act, 2013 and Rule 12 of the Companies (Management and Administration) Rules, 2014, the Annual Return of the Company is available on the website of the Company at https://www.elangoindustries.com

LOANS, GUARANTEES OR INVESTMENTS

The Company has given a fixed deposit its name, as security to a one-time inland letter of credit facility availed by its group Company, which comes within the purview of Section 185 of the Companies Act, 2013. The approval of shareholders had obtained by the Company at the Extraordinary General Meeting held on 21^st March, 2022

WHISTLE BLOWER POLICY/ VIGIL MECHANISM

The Company has a whistle blower policy to report genuine concerns or grievances. Your company hereby affirms that no complaint was received during the year.

SECRETARIAL STANDARDS

During the Financial Year, your Company has complied with applicable Secretarial Standards i.e. SS -1 and SS-2, relating to "Meetings of the Board of Directors" and "General Meetings", respectively

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO

Since the company has no manufacturing activities, at present details are not furnished.

ENVIRONMENT & SAFTEY

The Company is very conscious of the need to protect environment. The company is taking all possible steps for safe guarding the environment.

RISK MANAGEMENT

As already stated since the company has no activities there are no assets which are active. Hence the company has not framed any risk management policy.

CODE OF CONDUCT

The Board of Directors has adopted a Code of Ethics and Business Conduct for the Directors and Senior Personnel. The Code is a comprehensive one applicable to all Directors, Executive and Non-Executive, and members of Senior Management. The Code has been circulated to all the members of the Board and senior personnel and they have affirmed compliance of the same.

CERTIFICATE UNDER REGULATION 34 OF SEBI (LODR) REGULATIONS, 2015

Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 a certificate received from a Company Secretary in practice is enclosed as Annexure- 5

DISCLOSURE UNDER THE SEXUAL HARASSEMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013

The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. An Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment and all employees (permanent, contract, temporary, trainees) are covered under this policy. The Company has not received any complaint of sexual harassment during the year 2024-25 under review.

CAUTIONARY STATEMENT

Statements in this Annual Report, particularly those relating to Management Discussion and Analysis describing the Company s objectives, projections, estimates and expectations, may constitute forward-looking statements within the meaning of applicable laws and regulations. Although the expectations are based on reasonable assumptions, the actual results might differ.

ACKNOWLEDGEMENT

The Board takes this opportunity to thank all employees for their commitment, dedication and cooperation.

For and on behalf of the Board of Directors Elango Industries Limited

Place: Chennai S. Elangovan S. A. Premkumar Date: 13.08.2025 Managing Director Director (DIN: 01725838) (DIN: 00342952)

Annexure 01 MANAGEMENT DISCUSSION AND ANALYSIS REPORT COMPANY OVERVIEW

Elango Industries Limited was originally established in 1994 with the setup of a steel plant for producing steel ingots in Karaikal and Pondicherry. After operating in the steel industry for nearly a decade, the business was divested, and the promoters shifted focus to the power sector. In 2005, they commissioned a 7 MW gas-based power plant in Mayiladuthurai.

Recognizing the growing opportunities in the power generation sector, the Company further expanded its operations by establishing a 63 MW coal-based captive power plant in 2012. Since then, Elango Industries Limited has primarily operated as a power generation and distribution company.

In recent years, the Company has diversified its services by offering operation and maintenance (O&M) solutions for power plants, which now form a significant part of its revenue. To further enhance its revenue streams, the Company has started marketing and selling power generated by its clients power plants.

OPPORTUNITIES AND THREATS

The Company is steadily trying to increase its operations and its planning on investing in assets like spare parts which are required in due course in conducting the services of operations and maintenance of power plants of the clients. The company is trying to create more opportunities for itself in order to increase its sales and revenue. The Board of Directors have been working relentlessly to add value to the company also so that, it reflects on the share price as quoted on the BSE, where the Companys shares are listed.

The Company continues to explore opportunities in the renewable energy sector, in line with its long-term strategy to diversify and strengthen its operations. As part of this initiative, the Company has identified Mayladuthurai , Tamilnadu as a suitable location for setting up a solar power generation project with a proposed capacity of 20 MW and an estimated investment of approximately Rs.100 crore.

The location offers the advantage of existing evacuation facilities, and the Company has initiated discussions with the relevant Government authorities for obtaining the necessary clearances. Approvals for the project are expected before the end of 31^st March, 2025.

The project is proposed to be implemented in a phased manner. In the first phase, the Company intends to commission around 3 MW of capacity, along with battery storage, as soon as the approval received with the balance capacity planned in subsequent phases.

The Company is in preliminary discussions with prospective consumers and potential investors for this project. The Board believes that the proposed initiative, once implemented, will contribute to the Company s growth prospects while reinforcing its commitment to clean and sustainable energy.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a proper and adequate internal control system to ensure that all the assets of the Company are safeguarded and protected against any loss and that all the transactions are properly authorized and recorded. Information provided to management is reliable and timely. Company ensures adherence to all statutes. The Internal Financial Control systems are adequate considering the present state of business. The company has established Internal Financial Control framework including internal control over financial reporting operating controls and fraud framework. The framework is revised regularly by the management and tested by the internal audit team. Based on the periodical testing, the frame work is strengthened from time to time to ensure adequacy and effectiveness of Internal Financial Controls. The Report of the Statutory Auditors containing the Internal Financial Controls is given in the Statutory Auditors Report for the year ended March 31, 2025

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Comparing the performance of the current financial year, i.e., 2024-25 with the previous financial year, i.e. 2023-24; the financial performance of the company has marginally decreased due to various reasons. Considering the demand in electricity consumption, The promoters are exploring the opportunities in the renewable energy sector, in line with its long-term strategy to diversify and strengthen its operations. As part of this initiative, the Company has identified Mayladuthurai , Tamilnadu as a suitable location for setting up a solar power generation project with a proposed capacity of 20 MW and an estimated investment of approximately Rs.100 crore.

BOARD EVALUATION

The Board of Directors has carried out an annual evaluation of its own performance, board committees, and individual Directors pursuant to the provisions of the Act and SEBI Listing Regulations. The performance of the Board was evaluated by the Board after seeking inputs from all the Directors on the basis of criteria such as the board composition and structure, effectiveness of board processes, information and functioning, etc. The performance of the committees was evaluated by the Board after seeking inputs from the committee members on the basis of criteria such as the composition of committees, effectiveness of committee meetings, etc.

The above criteria are broadly based on the Guidance Note on Board Evaluation issued by the Securities and Exchange Board of India on January 5, 2017. In a separate meeting of Independent Directors, performance of Non-Independent Directors, the Board as a whole and the Chairman of the Company was evaluated, taking into account the views of Executive Directors and Non-Executive Directors.

HUMAN RESOURCES

The Company strives to maintain a cordial relationship and healthy atmosphere with its employees at all times. Continuous commitment to upgrading skills is an integral part of the human resource development policy of the Company. The Company is an equal opportunity employer and promotes diversity in its workforce. Equal opportunities are given to optimize their potential and improve their standard of living. The Company lays great emphasis on retention of its human talents. Employees welfare is a paramount consideration of the Company.

CAUTIONARY STATEMENT

The Management Discussion and Analysis Report contains forwarding looking statements based upon the data available with the Company, assumptions with regard to global economic conditions, the Government policies etc. The Company cannot guarantee the accuracy of assumptions and perceived performance of the Company in future. Therefore, it is cautioned that the actual results may materially differ from those expressed or implied in the report.

For and on behalf of the Board of Directors Elango Industries Limited

Place: Chennai S. Elangovan S. A. Premkumar Date: 13.08.2025 Managing Director Director (DIN: 01725838) (DIN: 00342952)