Lakhotia Polyesters India Ltd Directors Report

Dear Members,

Lakhotia Polyesters (India) Limited Nasik

Your Directors have pleasure in presenting the 21 st (Twenty-First) Boards Report on the business, operational, and financial performance of the Company, together with the Audited Standalone Financial Statements for the financial year ended March 31, 2026.

1. FINANCIAL RESULTS

The Companys financial performance for the financial year ended March 31, 2026, compared with the previous financial year, is summarized below:

[Amount in Lakhs]

Particulars	Year ended March 31, 2026	Year ended March 31, 2026
Total Income	1976.09	7216.58
Less: Expenditure	1661.25	6410.62
Profit/(loss) before Tax	314.84	805.96
Tax Expense (including Previous Year Tax Adjustment)	77.32	203.90
Profit/(Loss) after tax	237.52	602.06

2. OPERATIONS / STATE OF COMPANYS AFFAIRS:

A summary of the Companys financial performance for the financial year ended March 31, 2026, compared with the previous financial year, is detailed below:

Total Income: During the financial year 2025 26, the Company recorded a total income of 1,976.09 Lakhs, as against 7,216.58 Lakhs in the preceding financial year 2024 25.

Net Profit After Tax: The Company earned a net profit of 237.52 Lakhs for the financial year 2025 26, as compared to a net profit of 602.06 Lakhs in the previous financial year 2024 25 Despite these short-term operational challenges, the management continues to focus on optimizing operational efficiencies, exploring new market avenues, and tightening cost-control mechanisms to restore growth and maximize stakeholder value in the upcoming quarters.

3. NATURE OF BUSINESS:

Your Company is primarily engaged in the business of manufacturing and selling high-quality metallic yarns, textile fabrics, polyester lacquered/coated films, transfer foils, printing films, packaging films, and related chemical products. There has been no change in the nature of the business activities of the Company during the financial year ended March 31, 2026

4. DIVIDEND AND RESERVES

With a view to conserve financial resources for future business growth and operational requirements, the Board of Directors does not recommend any dividend on the Equity Shares of the Company for the financial year ended March 31, 2026.

During the financial year under review, the Board of Directors has resolved not to transfer any amount to the General Reserve of the Company. Consequently, the entire balance of profits for the financial year ended March 31, 2026, has been carried forward to the Retained Earnings / Surplus in the Statement of Profit and Loss.

5. SHARE CAPITAL

As on March 31, 2026, Authorized Share Capital of the Company, is Rs. 10,50,00,000 (Rupees Ten Crores and Fifty lakhs only) comprising of 1,05,00,000 (One crore and five lakhs) equity shares of Rs. 10/- each, and Paid-up Share Capital is Rs. 10,47,39,880 (Ten crores forty seven thirty nine lacs eight hundred eighty only) comprising of 1,04,73,988 (Ten crores forty sevn lacs thirty nine thousand eight hundred and eighty) equity shares of Rs. 10/ each.

There are no shares held by trustees for the benefit of employees and hence no disclosure under Rule 16(4) of the Companies (Share Capital and Debentures) Rules 2014 is furnished.

6. SUBSIDIARY, ASSOCIATE AND JOINT VENTURE COMPANIES

The Company does not have any Subsidiary, Associate, or Joint Venture Company as of March 31, 2026. During the financial year under review, no company became or ceased to be a Subsidiary, Associate, or Joint Venture of the Company.

7. CONSOLIDATED FINANCIAL STATEMENTS

Consequent to the fact that the Company has no Subsidiary, Associate, or Joint Venture Company, the preparation and presentation of Consolidated Financial Statements under Section 129(3) of the Companies Act, 2013, and the Rules made thereunder, are not applicable to the Company for the financial year ended March 31, 2026.

8. CORPORATE GOVERNANCE

The Company is committed to maintaining the highest standards of Corporate Governance and strictly adheres to the corporate governance requirements stipulated by the Securities and Exchange Board of India (SEBI).

In compliance with Regulation 34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), a detailed report on Corporate Governance forms an integral part of this Annual Report.

The requisite compliance certificate from the Secretarial Auditors of the Company, confirming compliance with the conditions of Corporate Governance and a declaration signed by the Managing Director & CEO of the Company, affirming compliance by the Members of the Board and Senior Management personnel with the Companys Code of Conduct are annexed to the Corporate Governance Report.

9. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Pursuant to Regulation 34(2)(e) of the SEBI (LODR) Regulations, 2015, a detailed review of the Companys operations, performance, and future outlook is set out under the Management Discussion and Analysis Report, which forms a separate and integral part of this Annual Report.

10. ANNUAL RETURN

Pursuant to Section 92(3) read with Section 134(3)(a) of the Companies Act, 2013, a copy of the Annual Return for the financial year ended March 31, 2026 is placed on the website of the Company at www.lakhotiapoly.in

11. BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

As on the date of this Report, your Company had Six (6) Directors consisting of 3 (Three) Independent Directors, 3 (Three) Executive Directors.

Mr. Nikunj Shrawan Bihani, Non-Executive Independent Director (DIN: 09773768) has stepped down from the Board of Directors of the Company with effect from July 17, 2026.

Mrs. Kajal Dubey (09717665) was appointed as an Additional Director in the capacity of Non-Executive Independent Director of the Company with effect from July 17, 2026, subject to the approval of the Members.

The Board has recommended to shareholders to approve the regularization of the appointment of Ms. Kajal Dubey at the ensuing Annual General Meeting of the Company The Company has received declarations from all the Independent Directors of the Company pursuant to the provisions of Section 149(7) of the Companies Act, 2013 along with Rules framed thereunder and Regulation 16(1)(b) of the SEBI Listing Regulations stating that they meet the criteria of independence as provided under the Act and the Listing Regulations and that they are not disqualified to become Directors under the Act; and in the opinion of the Board of Directors, all the Independent Directors fulfill the criteria of independence as provided under the Act read with the Listing Regulations and that they are independent of the Management.

The Company has also received Form DIR-8 from all the Directors pursuant to Section 164(2) and Rule 14(1) of Companies (Appointment and Qualification of Directors) Rules, 2014.

Details of the composition of the Board and Committees, Meetings of the Board and Committees held thereof during the financial year, and attendance threat have been provided in the Corporate Governance Report forming part of this Annual Report.

Brief resume and other details of the Directors proposed to be re-appointed, as stipulated under the Listing Regulations and Secretarial Standard-2, has been furnished separately in the Notice convening the AGM read with the Annexure thereto forming part of this Annual Report.

As on March 31, 2026, Key Managerial Personnel (KMP) of the Company pursuant to Section 2(51) and Section 203 of the Act read with the Rules framed are as under:

Mr. Madhusudan Lakhotiya: :	Managing Director
Mr. Vivek Rathi :	Chief Financial Officer
Ms. Shannu Chaturvedi :	Company Secretary & Compliance Officer

12. BOARD COMMITTEES:

The Board had constituted/re-constituted various Committees in compliance with the provisions of the Act and the SEBI Listing Regulations. All decisions pertaining to the constitution of Committees, appointment of Members and fixing of terms of reference/role of the Committees are taken by the Board. The details of the role and composition of these Committees, including the number of Meetings held during the financial year and attendance at these Meetings are provided in the Corporate Governance Section of this Annual Report.

13. MEETINGS

A calendar of Board Meetings, Annual General Meeting and Committee Meetings is prepared and circulated in advance to the Directors of the Company. The Board met 6 (six) times during the financial year 2025-26 on May 28, 2025, June 24, 2025, August 21,2025, November 12, 2025, December 12, 2025, and January 19, 2026. The maximum time gap between any two consecutive Meetings did not exceed one hundred and twenty days.

14. A STATEMENT REGARDING OPINION OF THE BOARD WITH REGARD TO INTEGRITY, EXPERTISE, AND EXPERIENCE

(INCLUDING THE PROFICIENCY) OF THE INDEPENDENT DIRECTORS APPOINTED DURING THE YEAR

The Company has received declarations from all Independent Directors confirming compliance with the criteria of independence outlined in Section 149(6) of the Companies Act, 2013, and Regulation 16(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Pursuant to the provisions of Rule 8(5)(iiia) of the Companies (Accounts) Rules, 2014, the Board of Directors registers its explicit opinion regarding the Independent Directors appointed or re-appointed during the financial year under review.

15. INDEPENDENT DIRECTORS MEETING

In accordance with Section 149(8) read with Schedule IV to the Companies Act, 2013, and Regulation 25(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate meeting of the Independent Directors of the Company was convened on January 19, 2026 The meeting was conducted without the attendance of Non-Independent Directors or any members of the corporate management team.

During the meeting, the Independent Directors comprehensively evaluated and recorded their assessments regarding:

The performance of individual Non-Independent Directors and the collective functionality of the Board of Directors.

The performance of the Chairperson of the Company, based on the views received from both Executive and Non-Executive Directors.

The structural quality, clarity, and timeline of operational and financial information flow from management, confirming it is optimal for driving informed board-level decision-making.

16. FAMILIARIZATION PROGRAM OF INDEPENDENT DIRECTORS

In compliance with the provisions of Regulation 25(7) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has structured and implemented a familiarisation programme for the Independent Directors. This is designed to familiarize with their roles, statutory rights, and strategic responsibilities, alongside updates on the nature of the industry, the Companys operational frameworks, business model, and overall performance dynamics.

Pursuant to Regulation 46(2)(i) of the SEBI Listing Regulations, the complete details of the familiarisation programmes conducted during the year, including the number of programmes attended and hours spent by individual Independent Directors, are hosted on the website of the Company and can be accessed at www.lakhotiapoly.in

17. PERFORMANCE EVALUATION

Pursuant to the provisions of Section 134(3)(p) read with Schedule IV to the Companies Act, 2013, and Regulation 17(10) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out a formal annual evaluation of its own performance, the individual performance of its Directors, as well as the functioning of its operational Committees.

The evaluation framework was designed and administered based on the criteria specified by the Nomination and Remuneration Committee (NRC), on following parameters:

Evaluation of the Board as a Whole: Assessed on broad aspects including Board structure, composition, frequency and diligence of meetings, execution of key fiduciary responsibilities, systemic risk management, and the overall robustness and transparency of information flow from management.

Evaluation of Board Committees: Assessed on the adequacy of their composition, clarity of mandates, compliance with respective Terms of Reference, and the effectiveness of their interactions and decision-making processes.

Evaluation of Individual Directors: Evaluated on individual attributes such as meeting attendance, preparedness, proactive contribution to core strategy, exercise of independent judgment, and active guidance provided to the management team outside of formal boardroom discussions.

In alignment with statutory requirements, the performance of the Non-Independent Directors, the Board as a whole, and the Chairperson was evaluated by the Independent Directors in their separate meeting held on January 19, 2026, taking into consideration feedback from both Executive and Non-Executive Directors. The outcomes of the evaluation process were discussed at the subsequent meeting of the Board of Directors.

The performance evaluation of individual Independent Directors was concluded by the entire Board, excluding the specific Director being evaluated.

18. CRITERIA FOR SELECTION OF CANDIDATES FOR APPOINTMENT AS DIRECTORS, KEY MANAGERIAL PERSONNEL AND SENIOR MANAGEMENT PERSONNEL

In accordance with the provisions of Section 178(3) of the Companies Act, 2013, the Nomination and Remuneration Committee (NRC) has formulated a comprehensive Nomination and Remuneration Policy. This policy establishes well-defined criteria for determining qualifications, positive attributes, and independence for selecting and appointing Directors, Key Managerial Personnel (KMP), and Senior Management Personnel.

The policy ensures that the level and composition of remuneration is reasonable, performance-linked, and sufficient to attract and retain talent required to run the Company successfully. The detailed Nomination and Remuneration Policy, along with the specific selection criteria, is hosted on the Companys website and can be accessed at www.lakhotiapoly.in

19. REMUNERATION POLICY FOR DIRECTORS, KEY MANAGERIAL PERSONNEL AND SENIOR MANAGEMENT EMPLOYEES

Pursuant to Section 178(4) of the Companies Act, 2013, and applicable SEBI Listing Regulations, the Board has approved a comprehensive Nomination and Remuneration Policy framework based on the recommendation of the Nomination and Remuneration Committee (NRC).

This Policy governs the criteria for identifying, selecting, appointing, and retiring Directors, Key Managerial Personnel (KMP), and Senior Management Personnel. It explicitly lays down the parameters for determining qualifications, positive attributes, professional expertise, and the independence of Directors, alongside defining a progressive approach toward Board diversity.

The said policy document is available on the Companys website and can be accessed at www.lakhotiapoly.in.

20. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

Pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, certain listed entities are required to include a Business Responsibility and Sustainability Report (BRSR) as part of their Annual Report, describing the initiatives taken by them from an Environmental, Social, and Governance (ESG) perspective.

Since the Companys average market capitalization does not fall within the threshold, the provisions of the regulation regarding Business Responsibility and Sustainability Report (BRSR) are not applicable to the Company during the financial year 2025-26.

21. CORPORATE SOCIAL RESPONSIBILITY POLICY

The provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility became applicable to the Company as its net profit for the financial year ended March 31, 2025, crossed the threshold limit of 5 Crores. In terms of Section 135(9) of the Act, where the CSR expenditure obligation of a company does not exceed 50 Lakhs, the requirement for constituting a CSR Committee is exempt, and the Board of Directors shall discharge all functions of such a committee. Since the CSR expenditure obligation of your Company fell below this 50 Lakh threshold, the Company was not required to constitute a separate CSR Committee, and the Board has directly overseen the CSR functions.

The Board of Directors approved the formal CSR Policy in its meeting held on January 19, 2026. The policy outlines the Companys strategy and focus areas for social development, and the same is accessible on the Companys website at www.lakhotiapoly.in The detailed Annual Report on CSR activities, as required under the rules, is annexed to this report as Annexure-I .

22. RELATED PARTY TRANSACTIONS

In terms of Section 134(3)(h) and Section 188 of the Companies Act, 2013, read with Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, all transactions attracting related party compliance were placed before the Audit Committee and the Board of Directors for review and approval.

Omnibus approval for routine and recurring related party transactions has been obtained from the Audit Committee, subject to the criteria and conditions specified in the Companys Policy. In compliance with statutory requirements, a statement detailing the nature, value, and commercial terms of all transactions executed under this approval is presented to the Audit Committee on a quarterly basis for its review and monitoring.

During the financial year ended March 31, 2026, the Company has not entered into any material related party transactions as defined under the Act and all transactions were performed in the ordinary course of business at arms length, hence particulars of transaction in Form AOC-2 is not required for the financial year 2025-26.

The Related Party Transactions Policy is hosted on the Company website and can be accessed at www.lakhotiapoly.in.

23. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY COMPANY

Pursuant to the provisions of Section 134(3)(g) and Section 186(4) of the Companies Act, 2013, the full particulars of the loans advanced, guarantees extended, securities provided, and investments made by the Company during the financial year 2025-26 are set out in the Notes to the Financial Statements.

24. PARTICULARS OF EMPLOYEES AND OTHER ADDITIONAL INFORMATION:

Disclosures pertaining to the remuneration and other statistical details as mandated 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, are annexed herewith as Annexure II and form an integral part of this Report.

In terms of the first proviso to Section 136(1) of the Act, the Annual Report and Financial Statements are being sent to the Members excluding the statement containing particulars of the top ten employees and those employees drawing remuneration in excess of the statutory thresholds prescribed under Rules 5(2) and 5(3) of the said Rules. The aforesaid statement is available for inspection by the Members. Any Member interested in obtaining an copy of this statement may submit a formal request to the Company Secretary at at admin@lgroup.co.in

25. WHISTLE BLOWER POLICY/VIGIL MECHANISM:

The Company has adopted a Whistle Blower Policy 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 and provides for direct access to the Chairman of the Audit Committee. It is affirmed that no person has been denied access to the Audit Committee.

The said Policy is available on the Company website and can be accessed by weblink www.lakhotiapoly.in.

26. DIVIDEND DISTRIBUTION POLICY

The provisions of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding the formulation of a Dividend Distribution Policy, are not applicable to the Company. Accordingly, the Company is not required to adopt or disclose such a policy.

27. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant and material orders passed by the Regulators/Courts that would impact the going concern status of the Company and its future operations.

28. MATERIAL CHANGES AND COMMITMENT IF ANY, AFFECTING FINANCIAL POSITION OF THE COMPANY FROM THE END

OF FINANCIAL YEAR TILL THE DATE OF THE REPORT

There have been material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year to which the Financial Statements relate and the date of this Report.

29. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 134(3)(c) and Section 134(5) of the Companies Act, 2013, the Directors confirm that: i. In the preparation of the Annual Accounts for the financial year ended March 31, 2026, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any; ii. The Directors have 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 as at March 31, 2026 and of the profit of the Company for the year ended on that date; iii. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; iv. The Annual Accounts have been prepared on a going concern basis; v. 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 vi. 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.

The Statutory Auditors of the Company have opined on the adequacy and operating effectiveness of the Internal Financial Controls Over Financial Reporting (IFCOFR) in their Independent Auditors Report.

30. STATUTORY AUDIT

The Members of the Company, at their 17 th Annual General Meeting (AGM) held on November 05, 2022, had approved the appointment of M/s. Sharp Arth & Co. LLP, Chartered Accountants, as the Statutory Auditors of the Company for a term of five consecutive years, to hold office from the conclusion of that AGM until the conclusion of the 22 nd AGM to be held in the year 2027.

The Auditors Report submitted by the outgoing Statutory Auditors for the financial year ended March 31, 2026, does not contain any qualifications, reservations, adverse remarks, or disclaimers. The Notes on Financial Statements referred to in the Auditors Report are self-explanatory and do not call for any further comments.

During the financial year under review, the Statutory Auditors have not reported any instances of fraud to the Audit Committee or the Board of Directors under Section 143(12) of the Companies Act, 2013 and the rules made thereunder.

31. SECRETARIAL AUDIT AND SECRETARIAL AUDITORS REPORT

Pursuant to the provisions of Section 204 of the Companies Act, 2013, read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors appointed M/s Rohit S Kasat & Associates, Company Secretaries (CP No. 25402), to undertake the Secretarial Audit of the Company for the financial year ended March 31, 2026.

The Secretarial Audit was conducted in accordance with the prescribed statutory framework, and the Secretarial Auditors Report in Form MR-3 is annexed herewith as Annexure III, forming an integral part of this Report.

The Secretarial Auditors Report for the financial year ended March 31, 2026, does not contain any qualification, reservation, adverse remark, or disclaimer.

32. COST RECORDS AND COST AUDIT

The provisions of Section 148 of the Companies Act, 2013, read with the Companies (Cost Records and Audit) Rules, 2014, are not applicable to the Company for the financial year ended March 31, 2026. Accordingly, the Company is not required to maintain cost records or undergo a cost audit for the year under review.

33. AUDIT TRAIL (Edit Log)

Pursuant to the Section 134(5) and relevant rules under the Companies Act, 2013, the Directors confirm that:

The Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2026, which features an inbuilt audit trail (edit log) facility.

The audit trail facility operated continuously throughout the financial year for all relevant transactions recorded in the software.

There has been no tampering with the audit trail feature during the period under review.

The audit trail logs have been preserved by the Company in accordance with the statutory requirements for the retention of records.

34. SECRETARIAL STANDARDS

The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI) and approved by the Central Government under Section 118(10) of the Companies Act, 2013, specifically SS-1 (Secretarial Standard on Meetings of the Board of Directors) and SS-2 (Secretarial Standard on General Meetings

35. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate internal control framework commensurate with the size of its business and the nature of its operations. These systems ensure that the resources of the Company are utilized efficiently and effectively to ensure that:

Assets are safeguarded and protected against loss from unauthorized use or disposition.

All significant transactions are authorized, recorded, and reported correctly.

Financial and other accounting records are reliable for preparing financial information and maintaining accountability of assets.

The internal control systems are supplemented by an extensive internal audit program, continuous reviews by the Management, and documented corporate policies, guidelines, and procedures.

Pursuant to the provisions of Section 138 of the Companies Act, 2013, read with Rule 13 of the Companies (Accounts) Rules, 2014, Mr. V B Rathi, Chartered Accountant, serve as the Internal Auditors of the Company. They carried out the internal audit for the financial year ended March 31, 2026, and submitted their periodic reports to the Company. During the year, the Audit Committee reviewed and took note of these reports on a regular basis.

Based on the recommendation of the Audit Committee, the Board of Directors, at their meeting held on April 28, 2026, re-appointed, Mr. V B Rathi, Chartered Accountant, as the Internal Auditors of the Company for the financial year 2026-27.

36. INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY

Pursuant to Section 134(5)(e) of the Companies Act, 2013, the Company has in place an adequate Internal Financial Controls framework commensurate with the size, scale, and complexity of its operations. This framework comprises robust policies and procedures designed to ensure:

The proper, orderly, and efficient conduct of the Companys business.

The safeguarding of its corporate assets and resources.

The prevention and detection of frauds, errors, and irregularities.

The accuracy and completeness of the accounting and financial records.

The timely preparation and presentation of reliable financial information.

The Company has adopted accounting policies that strictly align with the applicable Accounting Standards and the provisions of the Act. During the financial year under review, such controls were tested and no reportable material weaknesses in design or operation were observed.

37. RISK MANAGEMENT

Pursuant to the provisions of Section 134(3)(n) of the Companies Act, 2013, the Company has developed and implemented a robust Business Risk Management framework. This framework is designed to proactively identify, assess, monitor, and mitigate various elements of business risks that may threaten the operations or the going concern status of the Company. The risk management framework defines the risk management approach of the Company and outlines institutional mechanisms for;

Periodically reviewing external and internal business risk factors.

Formulating risk mitigation strategies and establishing defensive internal controls.

Maintaining clear documentation and structured reporting protocols for key risk parameters.

The framework utilizes diverse risk evaluation methodologies to analyse exposure trends and potential operational impacts. This assessment is conducted at both the enterprise level and across individual business segments to safeguard stakeholder value.

38. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND

REDRESSAL) ACT, 2013

The Company is committed to providing a safe, secure, and conducive work environment that is free from discrimination and harassment, including sexual harassment. In line with this commitment, the Company has implemented a comprehensive Policy on Prevention, Prohibition, and Redressal of Sexual Harassment at the Workplace. The Company has duly constituted an Internal Committee (IC) across its workplaces in strict compliance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, and the rules framed thereunder. The policy is accessible to all employees and applies universally, regardless of employment nature, to protect individuals against harassment.

Pursuant to the requirements under Rule 8(5)(x) of the Companies (Accounts) Rules, 2014, the details of complaints received and resolved during the financial year ended March 31, 2026, are set out below:

Number of complaints filed during the financial year	: Nil
Number of complaints disposed of during the financial year	: Nil
Number of complaints pending as on the end of the financial year	: Nil.

39. COMPLIANCE WITH THE PROVISIONS RELATING TO THE MATERNITY BENEFITS ACT, 1961

Pursuant to the provisions of the Companies (Accounts) Rules, 2014 (as amended from time to time), the Board of Directors affirms that the Company has complied with all applicable statutory provisions relating to the Maternity Benefit Act, 1961, and the rules framed thereunder.

During the financial year under review, no material complaints or instances of non-compliance were recorded under the provisions of the said Act.

40. ENVIRONMENT AND SAFETY

The Company is committed to maintaining high standards of Safety, Health, and Environmental (SHE) performance across all its activities, products, and services.

To achieve this, the Company continuously refines its operational processes, adopts safer technologies, and invests in process automation to minimize human error and enhance workplace safety. Upgradation and monitoring of the safety management systems are carried out on a continuous basis to ensure a safe, healthy, and sustainable work environment for all stakeholders.

41. INDUSTRIAL RELATIONS

The industrial relations of the Company remained peaceful, cordial, and harmonious throughout the financial year ended March 31, 2026. The Directors place on record their deep appreciation for the dedication, commitment, and cooperation extended by employees at all levels.

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

Pursuant to the provisions of Section 134(3)(m) of the Companies Act, 2013, read with Rule 8(3) of the Companies (Accounts) Rules, 2014, the relevant data and particulars concerning conservation of energy, technology absorption, and foreign exchange earnings and outgo for the financial year ended March 31, 2026, are detailed below;

Conservation of Energy:

(a) Steps taken or impact on conservation of energy: The Company maintains an ongoing commitment to energy efficiency across all administrative and operational levels. During the year under review, the Company optimized its power utilization by upgrading to energy-efficient LED lighting, optimizing load configurations of existing machinery, and enforcing strict schedules for peak-load operations to avoid wastage.

(b) Steps taken by the Company for utilizing alternate sources of energy: The Company continuously reviews opportunities to integrate clean energy into its infrastructure. While the primary energy demands are met through the local utility grid, the Company is exploring feasible options for installing commercial solar rooftops or procuring green energy.

(c) Capital investment on energy conservation equipment: No standalone or material capital expenditure was directed specifically toward specialized energy-saving equipment during the financial year under review. Minor costs were absorbed under routine repairs, maintenance, and facility upgrades.

Technology Absorption:

(a) Efforts made towards technology absorption: The Company continues to operate using advanced, modern, and proven indigenous operational technologies. Processes are continuously updated through software upgrades, automated tracking systems, and regular technical training workshops for operational personnel to maximize resource yields and minimize cycle times.

(b) Benefits derived like product improvement, cost reduction, or product development: The steady absorption and monitoring of day-to-day process automation have successfully minimized operational bottlenecks, reduced administrative overheads, enhanced structural accuracy in data reporting, and created a safer operating workflow for employees.

(c) Imported Technology: The Company has not imported any specialized foreign technology or machinery during the last 3 (three) financial years.

(d) Expenditure incurred on Research and Development (R&D): No separate, dedicated capital or revenue expenditure was allocated exclusively to a formalized Research and Development wing during the financial year ended March 31, 2026. Routine product improvement and quality checks are conducted internally as part of regular manufacturing and operations.

Foreign Exchange Earnings and Outgo:

The total actual foreign exchange earnings and outgo recorded on a cash basis during the current and preceding financial years are as follows:

Particulars	FY 2025-26 ( Rs. In lakhs)	FY 2024-25 ( Rs. In lakhs)
Foreign Exchange Earnings (Inflow)	278.07	2,825.12
Foreign Exchange Outgo (Outflow)	Nil	125.29

43. PUBLIC DEPOSITS

During the financial year under review, the Company has not accepted or renewed any deposits falling within the purview of Chapter V of the Companies Act, 2013, read with the Companies (Acceptance of Deposits) Rules, 2014. No public deposits were outstanding or remained unpaid or unclaimed at the beginning or end of the financial year ended March 31, 2026.

44. DETAIL OF APPLICATION MADE OR PROCEEDING PENDING UNDER INSOLVENCY AND BANKRUPTCY CODE 2016

During the financial year under review, no application was made and no corporate insolvency resolution proceedings are pending against or by the Company under the Insolvency and Bankruptcy Code, 2016, before the National Company Law Tribunal (NCLT).

45. DETAILS OF DIFFERENCE BETWEEN VALUATION AMOUNT ON ONE-TIME SETTLEMENT AND VALUATION WHILE

AVAILING LOAN FROM BANKS AND FINANCIAL INSTITUTION

During the financial year under review, the Company has not entered into any One-Time Settlement (OTS) with any Bank or Financial Institution. Consequently, the disclosure of the difference between the valuation amount at the time of the settlement and the valuation while availing the loan is not applicable.

6. DISCLOSURE OF AGREEMENTS:

The disclosures required under Para F of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are not applicable to the Company. During the financial year ended March 31, 2026, the Company has not entered into any such agreements as specified under the said regulations

47. ACKNOWLEDGEMENT AND APPRECIATION

Your Directors would like to acknowledge and place on record their sincere appreciation to all Stakeholders, clients, Financial Institutions, Banks, Central and State Governments, the Companys valued Investors and all other Business Partners, for their continued co-operation and support extended during the year.

Your Directors recognize and appreciate the efforts and hard work of all the employees of the Company and their continued contribution to promote its development.

For and on behalf of the
Board of Directors of Lakhotia Polyesters (India) Limited

sd/-	sd/-
Jayshri Lakhotiya	Madhusudan Lakhotiya
Director	Managing Director
DIN: 05357609	DIN: 00104576

Place: Nashik
Dated: July 17, 2026

Registered office
158/159 Samartha Sahkari Audyogik Vasahat Ltd.,
Pimpal- Gaon (Baswant), Tal Niphad,
District Nashik, Maharashtra - 422209