Galaxy Surfactants Ltd Directors Report

2. DIVIDEND

The Board recommends a final dividend of 22/- per share for FY26. The total dividend payout for the concluded year shall be 78 Crores.

The Dividend Distribution Policy, in terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is in place and available on the website of the Company https://www.galaxysurfactants.com.

3. BUSINESS & FINANCIAL PERFORMANCE

The performance of your Company for the year on a standalone and consolidated basis is reflected by the following ratios:

The global economy continued to exhibit resilience through CY 2025, despite heightened geopolitical tensions, trade policy uncertainties, and supply-chain disruptions. According to the latest IMF World Economic Outlook, global growth is projected to remain moderate approximately 3.0% in CY 2025 and 3.1% in CY 2026, supported by moderating inflation, improved financial conditions and sustained domestic demand in key economies. However, growth remains below historical averages, reflecting the impact of tighter trade conditions, geopolitical conflicts and ongoing realignment of global supply chains. The World Bank, in its most recent Global Economic Prospects, similarly highlights that while the global economy has shown notable shock-absorption capacity, the growth outlook remains uneven and vulnerable, particularly for emerging markets exposed to commodity price volatility and logistics disruptions.

As per the latest IMF World Economic Outlook, the United States is expected to record moderate growth, supported by robust consumer spending and a relatively strong labour market, even as trade-related uncertainties and reciprocal tariff measures continue to weigh on manufacturing and global trade flows. Growth in advanced economies is expected to remain subdued, with monetary policy gradually turning supportive as inflation moderates.

The Africa, Middle East and Turkey (AMET) region presents a mixed economic outlook. The IMF projects a gradual recovery over CY 2025-CY 2026, supported by easing disruptions to shipping routes, particularly in the Middle East, and improving energy production dynamics. However, the region continues to remain exposed to geopolitical risks, local competitive intensity, and supply-chain fragilities. Turkeys growth is expected to stabilise with the support of tighter monetary discipline, while several African economies are expected to benefit from infrastructure spending and improving domestic demand, albeit amid persistent external vulnerabilities.

Back in India, the economy continues to display strong resilience and remains one of the fastest-growing large economies globally. During CY 2025, the imposition of reciprocal tariff measures by the United States led to heightened uncertainty in global trade flows and selectively impacted certain export-oriented sectors; however, Indias diversified export base and strong domestic demand helped mitigate broader macro-economic implications. As per the Reserve Bank of India and IMF, Indias GDP growth for CY 2025-CY 2026 is expected to remain in the 6.4%-6.8% range, supported by robust domestic consumption, strong public and private capital expenditure, a resilient services sector, and improving rural demand. Monetary policy has remained calibrated, with an emphasis on supporting growth while ensuring macro-economic stability. Indias long-term growth fundamentals remain structurally strong, driven by demographics, manufacturing push, rising premiumisation and formalisation of consumption.

India business registered modest 4% growth in volumes, driven by strong growth from specialty care products, which recorded robust growth of over 27% during the year. The performance segment, however, faced a demand slowdown driven by reformulation initiatives at select Tier-1 accounts, largely triggered by persistently high fatty alcohol prices. This impact was partially offset by healthy domestic demand from non-Tier-1 and D2C customers, resulting in a modest 2% volume growth in the performance segment over the previous year.

The AMET region recorded a 10% decline in volumes, primarily due to lower offtake from select Tier-1 customers amid rising local competition. Additionally, demand in the region was adversely impacted due to supply-chain disruptions following the Middle East conflict, which intensified in March, affecting logistics and customer inventories.

In contrast, the Rest of the World (ROW) delivered stable volume growth of 4%, led by double-digit growth in the specialty care segment, particularly across APAC and LATAM markets. Volumes in Europe remained largely flat, reflecting subdued regional demand conditions. North America volumes were impacted during Q2 and Q3 due to reciprocal tariff measures in the United States; however, this was offset by a strong recovery in Q4, supported by improved customer responsiveness and incremental traction from the premium specialties business at TRI-K (USA).

Despite regional headwinds, the Company achieved an overall flattish volume growth for FY26. The stable performance in the ROW markets and growth driven by Tier-2 and Tier-3 customers in India helped offset the decline in AMET. While the near-term global economic outlook remains clouded by geopolitical risks, inflationary pressures and financial market volatility, medium term fundamentals for the personal and home care industry remain strong, particularly in emerging markets such as India. The Companys continued emphasis on specialty care products, premiumisation, agile customer engagement and proactive management of supply-chain and cost challenges remained key drivers in sustaining growth momentum during the year.

As industry expectations continue to evolve from scale to substance, performance today must be delivered with accountability. Customers, regulators, and partners increasingly assess not only what products achieve, but also the responsibility with which they are developed and delivered. Your Companys new brand identity reflects this shift and defines our role with greater clarity.

At the core of this identity is "Chemistry Creates Care".

For Galaxy, "chemistry" represents more than scientific capability. It reflects our depth of expertise and the equation of trust we have built with all stakeholders, including employees, customers, partners, investors, and communities. This trust is earned through consistency, rigor, and long-term commitment.

"Creates" speaks to our role in advancing progress. Through disciplined innovation and collaboration, we create new possibilities, developing solutions that respond to evolving needs, raise standards, and enable sustainable growth.

"Care" defines how we apply both chemistry and creation. It reflects a people first mindset, responsibility toward the planet, and a commitment to progress that is ethical, inclusive, and enduring.

This rebranding strengthens our direction. It gives clear expression to what Galaxy has long practiced, responsible chemistry applied with intent, to co-create care for people, planet, and progress.

The new logo carries forward the trust and credibility built over four decades, while embracing a contemporary, agile, and future-ready outlook.

It symbolizes the harmonious integration of chemistry, care, and collaboration. Its design language reflects -

-Purposeful chemistry, driven by deep formulation expertise

-Human-centric care, guided by safety, performance, and sustainability

-Progressive momentum, aligned with digitalization, global scale, and evolving customer needs

This year your Company marked a conscious shift from managing people processes to shaping a resilient, future-ready organization anchored in care, capability, and coherence. In an increasingly complex and evolving business landscape, strategic focus remained clear - to place people at the centre of sustainable growth and organizational excellence.

Guided by belief that Chemistry Creates Care, your Company continued to institutionalize a people philosophy that is deliberate, data-driven, and globally aligned. Your Companys approach this year moved beyond individual initiatives to building an integrated ecosystem that strengthens well-being, enhances capability, drives engagement, and enables consistent governance across geographies.

Your Company strengthened the commitment to employee well-being by formalizing a comprehensive support ecosystem. Initiatives such as our Employee Assistance Program and targeted wellness interventions were aimed at reinforcing psychological safety, resilience, and holistic health. These efforts reflect conviction that sustainable performance is built on a foundation of trust, inclusivity, and emotional well-being.

Your Company continued to bring its values to life through structured engagement platforms such as Value Week, Alchemy, and enterprise-wide recognition frameworks, designed to deepen alignment, belonging, and organizational pride - Globally. These initiatives institutionalized value-led conversations and shared experiences across locations and geographies, reinforcing a unified cultural identity while respecting local diversity. Your Companys focus remains on creating a workplace where employees feel connected to purpose and empowered to contribute meaningfully.

Capability development remained a strategic priority, anchored in flagship program journeys such as Operator Development Program, Navchetna 2.0, and Chemical diploma program Udaan, which strengthened grassroots capability and technical depth. At the leadership level, initiatives such as

SFURTI, Data Acumen, and Result Accelerator enhanced decision-making, execution excellence, and accountability. Structured career frameworks such as the Individual Development Plan (IDP) further supported internal mobility, role clarity, and long-term talent sustainability.

YourCompanyacceleratedourdigitaltransformation journey through key platforms and interventions including HRMS - Darwinbox global rollout, one-click payroll, and integrated workflow automation. These initiatives enhanced transparency, efficiency, and data security, while significantly improving employee experience and governance. Over 50 standardized workflows and automated reporting frameworks have strengthened process discipline and enabled data-driven decision-making across the organization.

As your Company moves forward, its focus remains on building an agile, inclusive, and high-performing organization. Your Company will continue to invest in scalable platforms, future-focused capability building, and leadership development to strengthen organizational resilience. Above all, your Company remains committed to fostering a culture where care is intentional, growth is inclusive, and performance is sustainable.

At Galaxy, people strategy is not just an enabler of business - it is a core driver of long-term value creation.

Stock Options represent a reward system based on performance. They help companies to attract, retain and motivate the best available talent. Options also provide a company with an opportunity to optimise its personnel costs. This also provides an opportunity to the employees to participate in the growth of the company, besides creating long term wealth in their hands.

Further, as the business environment is becoming increasingly competitive, it is important to attract and retain qualified, talented and competent personnel in the company. Your Company believes in rewarding its employees including employees of its subsidiaries for their continuous hard work, dedication and support, which has led and will lead the Company on the growth path. "GALAXY SURFACTANTS LIMITED - PERFORMANCE STOCK OPTION PLAN 2025" ("PSOP 2025"), instituted by the Company, in compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (SBEB Regulations). PSOP 2025 was approved by Members of the Company through Postal Ballot on June 24, 2025. Disclosures in compliance with SBEB Regulations, are uploaded on the website of the Company at https://galaxysurfactants.com/ company/corporate-governance. The certificate from the Secretarial Auditor on the implementation of the Plan in accordance with Regulation 13 of the SBEB Regulations, will be available for inspection during AGM. Furthermore, the Company has adhered to the applicable accounting standards in this regard.

6. QUALITY

Your Company is committed to delivering consistently high quality, intrinsically safe and high performing products and services to its customers.

The quality of performance surfactants and specialty care products manufactured by your Company is critical to assure the safety, quality and efficacy of formulations developed by its customers. Continuous improvement in quality across all domains and implementation of Best Practices at its sites enabled your Company to meet the quality standards set by regulatory authorities (viz. BIS, FDA, CDSCO) and the stringent quality benchmarks set by customers for the product qualifications.

Your Company has effectively implemented the principles of Good Manufacturing Practices (GMP) and Quality Risk Management approaches; and all its manufacturing sites are certified with EFfCI (European Federation for Cosmetic Ingredients) GMP standard. World-class practices such as TPM are adopted at the manufacturing sites augmented by internal benchmarking programmes such as Galaxy Manufacturing Excellence Award (GMEA) and Galaxy Quality Excellence Award (GQEA). Under the umbrella of Product Stewardship, your Company has maintained a high focus on Product Safety and Compliance. Your Company has further strengthened on developing products which are Ecofriendly and with High Natural Origin content.

Your Companys approach has always been Sustainable Product Development emphasising on 12 principles of Green Chemistry. Product attestations/certifications like COSMOS/Ecocert, ISO 9001, Kosher, Halal, RSPO (MB & SG), ISCC Plus; Product customisations as per the customer needs including specifications, offering safe ingredients originated from sustainable resources, and solutions to meet ever changing consumer trends have been the efforts to deliver enhanced value to your Companys customers.

Social compliance is yet another focussed area of your Company and all the manufacturing sites are compliant to the 4-pillar SMETA and EcoVadis silver medal (74).

7. SUSTAINABILITY

Your Company is one of Indias leading manufacturers of surfactants and specialty chemicals for the Personal Care and Home Care industry. Sustainability is embedded at the core of its business strategy, guiding innovation in environmentally responsible products, efficient operational processes, and responsible value-chain practices. The Companys sustainability journey is anchored in a clearly defined Mission 2030, which provides a long-term roadmap for climate resilience, resource efficiency, inclusive growth, and responsible sourcing.

Mission 2030 articulates the Companys commitment across five key sustainability pillars:

-Climate Change

Aligning with the 1.5 deg C pathway, the Company is focused on reducing greenhouse gas (GHG) emissions through increased adoption of renewable energy and continual improvement in energy efficiency.

-Circular Economy

Re-engineering value chains to design out waste entirely by improving material yield, undertaking systematic waste mapping, and increasing recycling and reuse across operations.

-Water Stewardship

Advancing responsible water management with the objective of being water positive by 2 times, through conservation, reuse, and replenishment initiatives.

-Diversity and Inclusion

Fostering a diverse and inclusive workplace and leveraging diversity as a driver of innovation, resilience, and competitive business advantage.

-Green Supply Chain

Ensuring responsible sourcing with a strong focus on 100% oil palm traceability up to mill level, aligned with NDPE and deforestation-free commitments.

-During FY26, your Company achieved significant progress across its sustainability priorities:

-Avoided 12,204 tCo2e emissions through an increase of 37.76% in solar electricity consumption for India Operations.

-Harvested 17,710 m? of rainwater within operational boundaries.

-Reused 125,977 m? of recycled water in India operations

-Procured 25,641 MT of RSPO Mass Balance (MB) certified raw materials at Galaxy Group Level

-Avoided 48,462 tCO2e emissions using RSPO (MB) certified materials at Galaxy Group Level

-RSPO Shared Responsibility score of (9.9/10)

-Attained 96% waste circularity across India operations

Your Company continues to comply with its sustainability performance with globally recognized standards, certifications, and disclosure frameworks on annual basis.

-Assured Sustainability Report (FY 2024-25) aligned with AA1000AS v3, Type 2 - Moderate Assurance

-ISO 14064:2019 - SCOPE 1, SCOPE 2, SCOPE

3 GHG accounting across the Galaxy Group verification and certification by third party independent external auditor

-ISO 46001 - certification by Water Efficiency Management System (Taloja location) completed in March 2026

-CDP 2025 Scoring

Climate Change Disclosure: (B) Rating Water Security Disclosure: (A-) Rating Forests Security Disclosure: (B) Rating

Supplier Engagement Assessment: (A-) Rating

-SPI: Sustainable Palm Index (81.3) "A" Rating

-Organization continued to be certified for RSPO (MB) - SCCS Certification (2020)- third party, independent, external party certification and verification

-Organization continued to be certified on Verified Deforestation-Free (VDF) certification - third party audit & certification by Control Union

-EcoVadis- Silver medal (Score: 74)

-ISCC Plus Certification for Taloja and Jhagadia Location. External third-party audit and certification by Control Union.

-Extended Producer Responsibility (EPR) compliance.

-Your Company continued to be Responsible Care? Certified -Third party audits by Indian Chemical Council nominated auditors.

-Your Company is audited by external, independent, third party.

Your Company maintains continuous and structured engagement with internal and external stakeholders to strengthen sustainability, performance and transparency. Key initiatives include:

STIFY>-Conducted GALSUSTAIN program and structured supplier sustainability training.

-Active customer engagement through industry exhibitions and forums.

-Participation and leadership in industry bodies and collaborative platforms such as RSPO, CDP, WWF, CRB, CII, I-SPOC, ICC, EcoVadis, and SEDEX.

-Sharing best practices, contributing to policy dialogue, and strengthening certification compliance to collectively advance a sustainable future.

Your Company has institutionalized sustainability through robust governance, digital systems, and cross-functional processes, covering:

-Frameworks & Disclosures: GRI, AA1000AS, BRSR, CDP (Climate, Water, Forest, Plastics, Biodiversity).

-Climate & Resources: GHG accounting (ISO 14064), Product Carbon Footprint (PCF), Water Stewardship (ISO 46001).

-Responsible Sourcing & Supply Chain: RSPO, ISCC Plus, VDF, NDPE, DCF, Oil Palm Traceability, SCTT, SPI, EPI.

-Supplier Engagement: Supplier sustainability assessments, training programs, supplier awards, customer questionnaires.

-Governance & Ethics: Code of Conduct (CoC), grievance mechanisms, risk and opportunity mapping, materiality matrix.

-Digitization & Monitoring: Monthly and quarterly MIS, sustainability data systems, EPR reporting.

-People & Capability Building: Employee and supplier trainings, sustainability awareness programs, thematic day celebrations.

-External Leadership: Speaker engagements at external forums, participation in external committees, board-level oversight, defined KRAs, review mechanisms, and sustainability policies covering climate change, water stewardship, sustainable palm oil, and value-chain engagement.

8. CORPORATE SOCIAL RESPONSIBILITY (CSR)

Pursuant to Section 135 of the Companies Act, 2013, read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board of Directors has constituted a CSR Committee to provide strategic oversight to the Companys social responsibility agenda. The Committees composition and terms of reference are set out in the Corporate Governance Report, which is an integral part of this Annual Report.

The Company has adopted a CSR Policy, hosted on its website, and all CSR initiatives have been undertaken in strict adherence to the statutory framework. The same is available at https://galaxysurfactants.com/company/ corporate-governance

Against the mandated CSR obligation of 5.03 Crores under Schedule VII, the Company has fully deployed 5.04 Crores toward approved CSR programmes. The detailed CSR Report is appended to the Boards Report as "Annexure B".

The project "Gyan Sanjeevani" strengthened the education ecosystem across Maharashtra and Gujarat through a holistic approach combining infrastructure development, digital innovation, and academic support. During the reporting period, the initiative impacted 13,087 students, enabling safer, more inclusive, and future-ready learning environments.

Key interventions included the construction of science laboratories and classrooms, provision of classroom benches benefiting nearly 500 students, establishment of advanced AI, Robotics, and VR laboratories, development of facilities for especially abled learners and adults, and installation of community sports centres to promote overall well-being.

Inaddition,theinitiativesupportedacademicperformance by distributing 32,408 notebooks and 2,910 school kits to 9,358 students across 100 schools, delivering career counselling programmes, and deploying e-learning software and mobile applications. Collectively, these efforts enhanced education delivery, built student confidence and skills, and created aspirations for long-term personal and community development.

Aligned with Galaxys Health for All vision, the Aarogya Vardheeni initiative advances inclusive healthcare by strengthening infrastructure, providing basic healthcare access, and promoting preventive care. During the reporting period, the programme impacted 52,668 lives, contributing to healthier and more resilient communities.

Key interventions included improving facilities at Primary Health Centres, supporting maternal and child health through MCH and nutritional kits, strengthening blood bank infrastructure, and providing continued medical and shelter support to cancer patients. Comprehensive eye care services were delivered through village screenings, free spectacles, and cataract surgeries. Community engagement remained strong, with employees donating 691 units of blood and hygiene awareness programmes reaching 1,000 students.

Under Initiative Drishti, 25 eye camps across 49 villages screened 3,081 individuals, distributed 1,258 spectacles, and enabled 310 cataract surgeries, restoring vision, improving livelihoods, and generating estimated community savings of 1.2 Crores.

Through integrated healthcare delivery and preventive education, Aarogya Vardheeni continues to create lasting impact and strengthen community health systems.

Galaxys Samajeek Utthaan programme drives inclusive rural development, impacting 49,060 lives through sustainable livelihood, digital enhancement, and community-led interventions. The programme integrates skill development, technology, and market access to build resilient, self-reliant rural communities.

Key initiatives include Samridh Gaon, a holistic model village approach addressing infrastructure, education, health, sanitation, livelihoods, and sustainability. Samridh Kheti, which strengthens farmer incomes through improved productivity, irrigation support, crop diversification, and value-chain linkages. Institutional capacity building further supported vulnerable groups through water infrastructure, solar dryers for women SHGs, assistive devices for disabled veterans, road safety measures, and healthcare facility upgrades.

Notable outcomes include Navaze villages recognition as Best Village under Majhi Vasundhara 5.0, driven by renewable energy adoption, waste management, rainwater harvesting, and enhanced SHG livelihoods. In the Vikramgad region, water infrastructure enabled post-monsoon irrigation, second cropping cycles, and a

30% increase in farmer incomes, reinforcing long-term agricultural sustainability.

Galaxys Paryavaran Suraksha initiative underscores the Companys commitment to environmental sustainability through afforestation, renewable energy, and water conservation. During FY26, the programme benefitted approximately 1,71,360 people across operating regions, supporting climate action and responsible resource management.

Key achievements included the plantation of 1,04,500 saplings during the year, taking the cumulative total to 3.18 lakh under the initiative "Hariyali". As part of the initiative "Ujjala" we have successfully installed of 97 kW rooftop solar systems across 10 schools making them carbon neutral. Apart from these water conservation programs such as pond rejuvenation, rainwater harvesting in 100 households, and bore recharge systems were completed during the year

Collectively, these efforts enabled significant water storage and harvesting, generated annual electricity cost savings for community institutions, and contributed to substantial sequestration, strengthening lonterm environmental resilience.

The Stree Unnati initiative empowers women and girls from marginalized and tribal communities through education, skill development, livelihood creation, and awareness programmes. During the year, the initiative benefitted 525 women and girls.

Key interventions included upcycling 85 tonnes of plastic waste into value-added products like community benches. Company also provided innovative solar dryers to a tribal women Self Help Groups for enhanced income generation with forward and backward linkages for continuous and sustained income of 1 lakh for the tribal SHG. During the year also conducted employee-led sessions on health, financial literacy, and self-defence.

These initiatives increased annual income by approximately 20,000 per waste picker while diverting significant plastic waste from landfills. Collectively, Stree Unnati continues to deliver meaningful social, economic, and environmental impact, reinforcing Galaxys commitment to inclusive and sustainable development.

9. SUBSIDIARIES AND ASSOCIATES

As of March 31, 2026, your Company has eight wholly-owned subsidiaries within the definition of Subsidiary Company under the Companies Act, 2013.

Your Company also has an Associate Company with shareholding in excess of 20% - formed specifically in connection with compliance requirements under the Electricity Rules, 2005 for Group Captive. Your Company has no role in control or participation in the business decision under the agreement in the above Company and accordingly, accounts of the said Company have not been consolidated.

During the year under review, the Board of Directors has reviewed the affairs of the subsidiaries. In accordance with Section 129(3) of the Companies Act, 2013, your Company has prepared Consolidated Financial Statements of the Company and all its subsidiaries in compliance with the applicable accounting standards, which forms part of this Annual Report.

Pursuant to the provisions of sub section (3) of section 129 of the Companies Act, 2013 read with Rule 5 of the Companies (Accounts) Rules, 2014, the salient features of the financial statement of each of our subsidiaries are set out in the prescribed format AOC-1 which forms part of the Financial Statements section of this Annual Report.

Further, pursuant to the provisions of section 136 of the Companies Act, 2013, the Financial Statements of subsidiary Companies are uploaded on the website of your Company i.e., www.galaxysurfactants.com and shall also be available for inspection at the registered office of your Company with prior notice.

Disclosures relating to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided in the Annual Report in "Annexure F", which forms part of this Report.

In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in the Annual Report which forms part of this Report. Having regard to the provisions of the first proviso to Section 136(1) of the Companies Act, 2013, the Annual Report excluding the aforesaid information is being sent to the members of the Company. The said information is available for inspection at the registered office of your Company with prior notice and any member interested in obtaining such information may write to the Company Secretary and the same will be furnished on request.

As on March 31, 2026, your Companys Board comprised directors with varied experience and backgrounds consisting of three Independent Directors, two Promoter - Non-Executive Directors and two Executive Directors.

Ms. Nandita Gurjar completed her second term as an Independent Director on September 7, 2025.

Your Board wishes to thank Ms. Gurjar for her guidance during her tenure.

As per the provisions of the Companies Act, 2013, Mr. Kanwar Bir Singh Anand and Mr. Madhavan Hariharan were appointed as Independent Director for the first term of 5 years in 36^th AGM and 37^th AGM respectively. Ms. Sangeeta Kapiljit Singh was appointed as an Independent Director for the first term of five years w.e.f. February 10, 2025.

All the Independent Directors are not liable to retire by rotation.

The Independent Directors have given their declaration of independence to your Company stating that they meet the criteria of independence as mentioned under Section 149(6) of the Companies Act, 2013.

Your Board has 4 Directors who are liable to retire by rotation. Mr. K. Natarajan (DIN: 07626680) is liable to retire by rotation in ensuing AGM and being eligible, your Board recommends him for reappointment.

The proposal for reappointment of Mr. K. Natarajan as director liable to retire by rotation is covered in Item No. 4 of the AGM notice as Ordinary Business.

The Board of Directors on the recommendation of the Nomination & Remuneration Committee has framed "Nomination and Remuneration Policy" which inter alia lays down framework in relation to remuneration of Directors, Key Managerial Personnel and Senior Management of your Company and criteria for selection and appointment of Board Members. The said Policy is annexed as "Annexure C" and forms an integral part of this Report.

Pursuant to the provisions of the Companies Act, 2013 and Regulation 17(10) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Board has carried out the annual performance evaluation of its own performance, Board Committees and Individual Directors. The evaluation was done through a structured questionnaire which considered various aspects of the Boards functioning, composition of the Board and its committees, culture, execution and performance of specific duties, obligations and governance.

The details of programmes for familiarisation of Independent Directors of your Company are available on your Companys website www.galaxysurfactants. com.

The Board of Directors has evaluated the Independent Director appointed during FY26 and opined that the integrity, expertise and experience (including proficiency) of the Independent Directors is satisfactory.

In order to strengthen its functioning, the Board of Directors has constituted the following Committees as per the requirement of Companies Act, 2013 and the SEBI Regulations:

1. Audit Committee

2. Nomination & Remuneration Committee

3. Stakeholders Relationship Committee

4. Corporate Social Responsibility Committee

5. Risk Management Committee

Details of the Committees along with their charter, composition and meetings held during the year are provided in the Corporate Governance Report which forms part of this Annual Report.

The details of the Board of Directors and Committees along with their composition, number of meetings held and attendance at the meetings are provided in the

Corporate Governance Report which forms part of this Annual Report.

Secretarial Standards: Applicable Secretarial Standards i.e. SS-1 and SS-2 relating to Meetings of the Board of Directors and General Meetings respectively have been duly followed by your Company.

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:

(i) that in the preparation of the Annual Accounts for the year ended March 31, 2026, the applicable accounting standards have been followed and there are no material departures from the same;

(ii) that the Directors had selected such accounting policies and applied them consistently and made judgements 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 and Loss of the Company for that period;

(iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) that the Directors had prepared the Annual Accounts on a going concern basis;

(v) that the Directors had laid down internal financial controls to be followed by your Company and that such internal financial controls are adequate and were operating effectively; and

(vi) 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.

M/s. Deloitte Haskins & Sells LLP (Firm Registration Number 117366W/W-100018) were re-appointed as Statutory Auditors of your Company at the 36^th Annual General Meeting held on August 05, 2022 for the second term of 5 consecutive years i.e. from the conclusion of 36^th Annual General Meeting till the conclusion of 41^st Annual General Meeting to be held in the year 2027.

The Report given by the Auditors on the Financial Statements of your Company is part of this Annual Report. There is no qualification, reservation, adverse remark or disclaimer given by the Auditors in their Report.

Your Board of Directors, based on recommendation of the Audit Committee, has appointed M/s. Nawal Barde Devdhe & Associates, Cost Accountants in Practice, to audit the cost accounts of your Company for FY27. In terms of Rule 14 of the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditor is required to be ratified by the members. Accordingly, a resolution seeking ratification by the members for the remuneration is listed as Item No. 5 of the AGM Notice as Special Business.

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company has appointed M/s. S. N. Ananthasubramanian & Co., Company Secretaries in Practice to undertake the Secretarial Audit of your Company for the period of 5 consecutive years upto FY 2029-30 in the 39^th AGM held on August 12, 2025. The Report of the Secretarial Auditor for FY26 is appended as "Annexure E" to this Boards Report.

There is no qualification, reservation or adverse remark made by the Secretarial Auditor in their report.

The Company has established a comprehensive Risk Management framework designed to identify, evaluate, and mitigate risks inherent to operations. Given the nature of the industry, the framework places significant emphasis on process safety, environmental compliance, supply chain stability, and operational continuity. Mitigation strategies are continually strengthened through periodic assessments, technology upgrades, safe operating practices, training programs, and internal audits. The Company has in place an adequate system of Internal Controls commensurate with the complexity and scale of manufacturing operations.

Internal Financial Controls are policies, procedures and processes that ensure the accuracy, completeness and reliability of financial reporting and transactions. With periodic review, testing and audit of processes and controls, your Company ensures that they are working as expected. Internal controls ensure the efficient conduct of its business, including adherence to Company policies, safeguarding of its assets, prevention and detection of errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information

The Internal Audit function operates independently and reports directly to the Audit Committee. Internal audits are carried out at planned intervals across all manufacturing units, corporate functions, and warehouse locations. Audit coverage includes operational controls, compliance frameworks, financial controls, supply chain processes, and IT system controls.

Audit findings, risk observations, and improvement recommendations are reviewed by the Audit Committee, and management ensures timely implementation of corrective actions. The Audit Committee periodically evaluates the adequacy of internal audit.

Based on the assessments carried out, the Board confirms that the Companys internal financial controls are adequate and operating effectively.

Your Company treats its employees equally, with dignity and with no gender bias. Your Company believes and ensures that all employees work in an environment that is free from all kinds of harassments including sexual harassment of women. As required under the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, your Company has constituted an ICC (Internal Complaints Committee).

Details of Complaints are as under:

The policy for Prevention of Sexual Harassment is available on the website of your Company as given below:

https://galaxysurfactants.com/pdf/policies/Governance-and-Ethics/POSH-Policy-2025.pdf

Your Company is committed in maintaining the highest standards of Corporate Governance. Your Company continues to be compliant with the requirements of Corporate Governance as enshrined in the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. A Report on Corporate Governance along with the Certificate from the Secretarial Auditors of your Company confirming compliances with the conditions of Corporate Governance as stipulated in the Listing Regulations forms part of this Annual Report.

A report on the Management Discussion and Analysis for the year under review, as stipulated under Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section forming an integral part of this Annual Report.

Despite continued endeavour in identifying and communicating the beneficiaries of unclaimed dividend and shares, your Company continues to have some cases of unclaimed dividend on account of various reasons like change in residential address, change in telephone numbers etc. due to which your Company is unable to reach the concerned beneficiaries. Such unclaimed dividends and shares in respect of which dividend has remained unclaimed need to be transferred to IEPF as per statutory provisions.

As required under Section 124 of the Companies Act, 2013 (the Act), unclaimed dividend amount aggregating to 6,84,838/- (Dividend for FY18 lying with your Company for a period of seven years was transferred during FY26 to the Investor Education and Protection Fund established by the Central Government.

As required under Section 124 of the Act, 5,560 Equity Shares, in respect of which dividend has not been claimed by the members for seven consecutive years or more, have been transferred by your Company to the Investor Education and Protection Fund (IEPF) Authority during FY26. Details of shares transferred are available on the website of IEPF as well as on the website of your Company.

The Business Responsibility and Sustainability Report of your Company for FY26 forms part of this Annual Report as required under Regulation 34(2)(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Pursuant to section 134 and any other applicable sections of the Companies Act, 2013 (the Act), following disclosures and information is furnished to the shareholders:

As required under section 134(3)(m) of the Act read with Rule 8(3) of the Companies (Accounts) Rules, 2014, the particulars relating to "Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo" are given in "Annexure A" which is appended to this Boards

Report.

Pursuant to Section 92(3) read with Section 134(3) (a) of the Act, the Annual Return of the Company in Form MGT-7 for FY26, is available on the Companys website at https://www.galaxysurfactants.com/ investor-relations/annual-general-meetings.aspx

Particulars of loans, guarantees and investments covered under Section 186 of the Act form part of the notes to the Financial Statements provided in this Annual Report.

The Policy on Related Party Transactions as approved by the Board is available on the website at https://galaxysurfactants.com/pdf/corporate-governance/POLICIES/Policy-on-Related-Party-Transactions.pdf

The particulars of Related Party Transactions in prescribed Form AOC-2 are annexed as "Annexure D" and form an integral part of this

Report. There are no materially significant related party transactions made by the Company with Promoters, Directors or Key Managerial Personnel, etc. which may have potential conflict with the interest of the Company at large.

The disclosure as required by Schedule V, Clause A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is as under:

As per Section 177 of the Act, your Company has established a vigil mechanism for the Directors and employees to report genuine concerns. Your Company has a vigil mechanism named "Whistle Blower Policy" to deal with any instances of fraud and mismanagement. The Whistle Blower Policy is available on the website of your Company at https:// galaxysurfactants.com/pdf/corporate-governance/ POLICIES/Whistleblower-Policy_2025.pdf

There are no material changes or commitments affecting the financial position of your Company which have occurred between the end of the financial year to which the financial statement relates and the date of the report.

Your Company has complied with the provisions of Maternity Benefit Act 1961.

Your Company proposes not to transfer any amount to the General Reserve for FY26.

During the previous year, your Company had received a notice from GIDC to vacate one of its newly acquired land parcels. The Company has approached courts challenging the termination and the Courts have granted an interim stay.

There was no instance of fraud during the year under review, which required the Statutory Auditors to report to the Audit Committee and / or Board under Section 143(12) of the Act and the rules made thereunder.

Your Company has made and maintained cost records as specified by the Central Government under sub-section (1) of Section 148 of the Act.

Statements in the Directors Report describing your Companys objectives, expectations or forecasts may be forward-looking within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence your Companys operations include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.

Your Company is grateful to the Government of India, the Governments of Maharashtra and Gujarat, the Government of countries where subsidiaries are located and other regulators for their continued co-operation, support and guidance. Your Company wishes to thank its investors, banking community, rating agencies and stock exchanges for their support. Your Company would like to take this opportunity to express sincere thanks to all its valued customers, distributors, dealers, agents and suppliers for their continued support and patronage. Your directors express their deep sense of appreciation to all the employees whose outstanding professionalism, commitment and initiative has made the organisations growth and success possible and continue to drive its progress. Finally, your directors wish to express their gratitude to the members for their trust and support.