Safety Controls & Devices Ltd Management Discussions

The global economy in FY26 has demonstrated resilience but faces renewed and intensifying headwinds. After navigating the trade policy disruptions of 2025, the global economy encountered a significant outbreak of conflict in the Middle East in early

2026.

Theglobaloutlookhasabruptlydarkenedfollowing the outbreak of war in the Middle East on February 28, 2026. The closure of the Strait of Hormuz and serious damage to critical production facilities in a region central to global hydrocarbon supply could cause an energy crisis on an unprecedented scale. The war interrupted what had been a steady growth trajectory.

The duration and scale of the conflict and the time it will take for energy production and transit to normalize after the end of hostilities will be the determining factor in the ultimate size of the shock to the global economy. The overall impact of the shock depends on three channels. First, the direct effect of commodity price increases represents a negative supply shock, raising the cost of all energy-intensive goods and services including fertilizers, chemicals, food, transportation, and heating disrupting supply chains, feeding into headline inflation, and reducing purchasing power. This direct shock can be amplified via second-round effects as workers and firms try to recoup expected income losses through higher wages and prices. The risk of such wage and price spirals will be higher for countries where inflation expectations are already poorly anchored, requiring a more forceful tightening of monetary policy, at greater cost to the economy. The reaction of financial markets is the third channel. A classic risk-off episode triggered by the prospects of macroeconomic instability could ensue, impairing asset valuations, increasing risk premiums, causing capital flight and the dollar to appreciate with a flight to safety, and dampening aggregate demand.

Global growth is projected to be 3.0 percent in 2026 and 3.4 percent in 2027, down from the average of 3.5 percent observed in 2024 25. The modest slowdown reflects the effects of the war in the Middle East being partly offset by accelerated demand-driven momentum in the global technology cycle thanks to advances in artificial intelligence (AI) and its adoption. The impact varies widely based on countries exposure to the war and position in the technology value chain.

Energy exporters outside the conflict zone benefit from favourable terms of trade, whereas economies plugged into the technology-led upturn experience stronger activity even if they are energy importers. In contrast, activity weakens for energy importers with limited participation in the technology value chain, a group that includes many low-income countries. Global headline inflation is expected to increase from 4.1 percent in 2025 to 4.7 percent in 2026 before declining to 3.9 percent in 2027. Slightly revised upward from April, these projections indicate that the disinflation trend in place since the beginning of 2024 has stalled.

The Middle East conflict extended commodity price volatility, and further threatened supply chains, raised prices, and weigh on financial conditions. Trade fragmentation could accelerate, possibly hurting output and increasing prices. A possible correction in technology-driven expectations adds to the downside risks, whereas eroded policy buffers can amplify those risks. Upside risks stem from a swifter-than-expected normalization in energy markets, stronger-than-expected technology investment, a revival of durable cooperation that lowers trade barriers, and structural reform that raises medium-term growth. Policy priorities are restoring price stability, supported by clear communication, central bank independence, and strong financial oversight, while rebuilding fiscal buffers and using fiscal tools sparingly through temporary, targeted support that preserves price signals.

Structural reforms are needed to promote energy security, AI readiness, domestic rebalancing, and international cooperation should be strengthened to relieve the strain of ongoing tensions.

INDIA OUTLOOK

In India, growth for 2025 is revised upward by 1.0 percentage point relative to October, to 7.6 percent, reflecting the better-than-expected outturn in the second and third quarters of the fiscal year and sustained strong momentum in the fourth quarter. For 2026, growth is revised upward moderately by 0.3 percentage point (0.1 percentage point relative to January) to 6.5 percent, led by positive contributions from the carryover of the strong 2025 outturn and the decline in additional US tariffs on Indian goods from 50 to 10 percent, which outweigh the adverse impact of the Middle East conflict.Growth is projected to stay at 6.5% in 2027. In the last fiscal year, real gross domestic product growth stood at 7.7% year over year as against the first advance estimate of 7.4%. Growth remained robust in the final quarter at 7.8%, indicating resilient domestic demand amid a challenging global backdrop. Real gross value added (GVA) expanded even faster to 7.9%, pointing to strength on both demand and supply sides.

The expenditure side of GDP was largely driven by domestic demand.

Private final consumption expenditure remained resilient, growing 7.1% in the last quarter of fiscal2025 to 2026, with the Retailers

Association of India reporting retail growth of 10% and 9% in March and February, respectively. For the entire fiscal, private final con -sumption expenditure grew 7.7%, supported by tax incentives, disposable income gains, and stronger purchasing power.

Investment remained strong, with gross fixed capital formation rising 10.8% in the fourth quarter and 8.2% for the full year. Public capital expenditure did most of the heavy lifting here.

Exports softened, rising by 3.7%, while imports were up 1.9% in the last quarter, as shipping disruptions due to the Middle East conflict weighed on economic activity in March.

For the full year, exports were up 6.3% while imports rose 5.6%, helped by trade frontload-ing amid US tariff–driven uncertainty.

On the production side, growth was driven by strong performances in both manufacturing and services.

Manufacturing showed strong performance through the year, with GVA rising 10.7% for the whole year, despite moderating to 7.3% in the fourth quarter.4The index of industrial production pointed to strong growth in capital goods (11.8%) and infrastructure goods (9.2%).

Services were the main growth pillar, with the tertiary sector growing the fastest 9.9% in the last quarter and 9.3% for the full year driven by strong performances in trade, hotels, transport, and communication (11%).

Growth moderated in the agriculture and allied activities sector, reaching 3.6% in the last quarter and 3% for the full fiscal. But this did not translate into weaker rural demand: Strong two-wheeler sales (up 13.2% year over year), tractor sales (up 19.2%), and growth in the fast-moving consumer goods sector (up 4.6% in rural areas versus 3.1% in urban areas)5 for fiscal 2025 to 2026 pointed to a healthy rural economy despite softer growth in agricultural GVA.

Inflation fell to a multiyear low as food and fuel prices eased, aiding consumer spending. This also resulted in a subdued GDP deflator, keeping nominal GDP growth at 8.9%.

Growth in India is projected at 6.6% in FY27, as higher energy prices caused by the Middle East conflict and supply chain disruptions weigh on economic activity. But even with the slowdown, India remains among the fastest-growing major economies in the world, says the World Banks latest economic update.

Despite significant the conflict, the economys strong macroeconomic fundamentals and policy buffers offer some insulation. Substantial foreign reserves, low inflation, predominantly rupee-denominated public debt, a healthy financial sector, and trade major role in providing diversification resilience from external headwinds.

Boosting private sector-led growth will be critical to strengthening economic resilience and supporting more young people to enter the workforce. To achieve Viksit Bharat, a predictable, business-enabling environment will help to unlock investment and create jobs at scale in priority sectors like energy and infrastructure, manufacturing, tourism, healthcare, and agribusiness.

India remains among the fastest growing major economies, with growth projected at 6.4 percent, supported by strong momentum in private consumption and services activity.

OVERVIEW OF THE POWER INDUSTRY IN INDIA

Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. The existence and development of adequate power infrastructure is essential for sustained growth of the Indian economy. The fundamental principle of Indias power industry has been to provide universal access to affordable power in a sustainable way.

The Ministry of Power has made significant over the past few years to turn the country from one with a power shortage to one with a surplus by establishing a single national grid, fortifying the distribution network, and achieving universal household electrification. Indias power sector is one of the most diversified in the world.

Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power, to viable non-conventional sources such as wind, solar, agricultural, and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In 2025, global economic activity continued to rise steadily, with GDP expanding by 3.4% according to the IMFs April 2026 World Economic Outlook.

The year also ranked among the warmest on record, as reported by the World Meteorological Organization. Electricity demand grew by nearly 3%, exceeding the decade-long average of 2.8%. This growth was driven primarily by industry, household appliances, and commercial buildings (excluding data centres). While demand from electric vehicles (+18%) and data centres (+17%) surged, their overall contribution to demand growth remained relatively small.

Annual global investment in the energy transition technologies reached a record $ 2.3 trillion in 2025, marking an 8% year on-year increase. The three largest sectors by investment were electrified transport ($ 893 billion), renewable energy ($ 690 billion), and grid infrastructure ($ 483 billion) (Source: BNEF). However, renewable energy investment declined by 9.5% compared to the previous year, largely due to uncertainty about changes in power market regulations in China. Investment levels rose across most sectors, apart from hydrogen ($ 7.3 billion) and nuclear ($ 36 billion).

India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 472.46 GW as of April 30, 2025. India emerged as the worlds third-largest producer of wind and solar energy electricity in 2024. A total of 222.85 GW of generation capacity from non-fossil fuel sources has been installed in the country as of February 28, 2025. As of April 30, 2025, Indias total renewable energy installed capacity has reached 223.62 GW, marking an impressive 16.87% increase compared to 180.80 GW in April 30, 2024. As of April 30, 2025, Solar energy contributed 107.94 GW, followed by 51.05 GW from wind power, 10.74 GW from biomass, 5.10 GW from small hydropower, 0.85 from waste to energy, and 47.92 GW from hydropower. 100% FDI is allowed under the automatic route in the power segment and renewable energy.

Renewable source	Installed capacity (GW)
Revenue (FY2025)	10256.03
Revenue (FY2026*)	11701.47
PAT (FY2025)	764.41
PAT (FY2026*)	1442.38

The Indian economy sustained its momentum with a projected growth rate of 7.6% (Source: Ministry of Statistics and Programme Implementation (MoSPI)) in FY 2025-26, surpassing the previous years (FY 2024-25) growth rate of 7.1%. This growth was primarily driven by private consumption and investment (fixed capital asset formation), spurred by government policies to improve infrastructure, logistics, and the overall business ecosystem. The year-end review of the Ministry of Power, published in Jan 2026, highlights that per capita electricity consumption in India has surged to 1,460 kWh, marking a 52.6% increase (503 kWh) from 957 kWh in FY 2013-14. Driven by the impact of early onset and extension of the monsoon and lower than average temperatures, the energy demand grew only by 1% in FY 2025-26 over FY 2024 25. The sector was able to meet peak demand of 245 GW, while monthly energy shortages also declined to 0.03% in FY 2025-26.

Indias installed generation capacity stood at 533

GW as of March 31, 2026, with 56 GW of capacity added during FY 2025-26. The share of thermal capacity in the total installed generation mix declined from 61% in FY 2020-21 to 47% in FY 2025-26, while the share of renewable capacity surged from 25% to 42%. Approximately 88% of the total 56 GW capacity added during FY 2025-26 came from renewable sources (excluding large hydro), comprising ~45 GW of solar and ~6 GW of wind capacity. This growth enabled India to attain the third position globally in renewable energy installed capacity, according to IRENA RE Statistics 2026

In the current decade (2020-2029), the Indian electricity sector is likely to witness a major transformation with respect to demand growth, energy mix and market operations. Demand for electricity is expected to increase per capita consumption of electricity is estimated to stand at 1,824 TWh by FY27. The all-India peak power demand in FY26 is expected to be 277 GW. In FY25, India consumed 1,694 billion units of electricity, an increase of 33% over FY21, translating into a 5-year CAGR of 7.4%. Current production levels are not enough to meet demand - annual demand outstrips supply by about 7.5%. In order to decarbonise energy consumption, India needs a 30-fold increase in renewable energy, 30-fold increase in nuclear energy and doubling of thermal energy, which would make 70% of energy consumed carbon-free.

OVERVIEWOFTHERENEWABLEENERGY INDUSTRY IN INDIA

The year 2025 was defined by steady economic growth, record investments in renewable energy and shifting generation trends. Rising electricity demand was fulfilled with unprecedented renewable capacity additions, especially solar and wind. Investment flows reached new highs; nuclear energy held steady, with new projects under construction, while green hydrogen struggled to scale amid cost and infrastructure challenges. Electric vehicle sales surged worldwide, with adoption spreading rapidly across emerging markets. Together, these developments highlighted both the progress and complexities of steering towards a low-carbon future.

Indias energy demand is expected to increase more than that of any other country in the coming decades due to its sheer size and enormous potential for growth and development. Therefore, most of this new energy demand must be met by low-carbon, renewable sources. Indias announcement India that it intends to achieve net zero carbon emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change. India is the market with the fastest growth in renewable electricity, and by 2026, new capacity additions are expected to double.strides in diversifying its With the increased support of the Government and improved economics, the sector has become attractive from an investors perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role. In 2025, global annual renewable capacity additions (including hydropower) rose by 16%, reaching approximately 800 GW. Solar PV led the expansion, with around 605 GW added worldwide an increase of about 12% y-o-y bringing the total installed solar capacity to nearly 2,800 GW. Wind power contributed around 160 GW of new capacity, raising global wind installations to about 1,300 GW. Other renewables, including hydropower, added roughly 35 GW in 2025.

India is surpassing climate targets with 100 Gigawatts of solar, 47% non-fossil fuel power, and a 36% reduction in emissions intensity. The country has immense growth potential in renewable energy, especially in solar and wind power, as it aims to achieve 500 gigawatts of renewable energy capacity by 2030. As of March 2025, Renewable energy sources, including biomass, waste to power and waste to energy, have a combined installed capacity of 220.09 GW. Indias renewable energy capacity is set to reach 250 GW by 2026, driven by a strong project pipeline. The Budget for FY26 has notably enhanced allocations for the renewable energy sector, with budget estimates for the Ministry of New and Renewable Energy (MNRE) totalling Rs. 256.49 crore (US$ 3.03 billion). This represents a 39% increase compared to last years initial budget estimates of Rs. 19,100 crore (US$ 2.26 billion). BPCL plans to invest US$ 1.19 billion (Rs. 10,029 crore) for green energy, targeting 2 GW by 2025, 10

GW by 2035, and 7,000 EV chargers in five years.

Industry Scenario

Indias energy landscape has undergone a vast transition, with the focus shifting towards renewable means in the era of sustainability. As the world repositions itself towards sustainability,

Indias renewable sector unleashes a new scope of opportunities. Over the past decade, India has made significant energy mix, gradually reducing its dependence on conventional fossil fuels, and setting an enhanced target at the COP26 of 500 GW of non-fossil fuel-based energy by 2030. Indias installed non-fossil fuel capacity has increased 396% in the last 8.5 years and stands at more than 205.52 GW (including large hydro and nuclear), about 42% of the countrys total capacity (as of November

2024). Solar power has witnessed a 30-fold surge in adoption, with installed capacity increasing from a mere 2.5 GW in 2014 to about 94.16 GW as of

November 2024. The governments commitment to creating a sustainable world and scaling up solar capacity through initiatives like the International

Solar Alliance reflects the countrys potential to harness solar power in collaboration with more than 120 signatory countries.

Road Ahead

India has set a target to reduce the carbon intensity of the nations economy by less than 45% by the end of the decade, achieve 50% cumulative electric power installed by 2030 from renewables, and achieve net-zero carbon emissions by 2070. Low-carbon technologies could create a market worth up to $80 billion in India by 2030. It is expected that by 2040, around 49% of the total electricity will be generated by renewable energy as more efficient batteries will be used to store electricity, which will further cut the solar energy cost by 66% as compared to the current cost. The use of renewables in place of coal will save India Rs. 54,000 crore (US$ 8.43 billion) annually. Around 15,000 MW of wind-solar hybrid capacity is expected to be added between 2020-25.

BUSINESS OVERVIEW How We Create Value

Safety Controls & Devices Limited operates as an Engineering, Procurement and Construction (EPC) company delivering integrated solutions across power transmission, renewable energy, fire protection systems and institutional infrastructure. The Company leverages engineering expertise, project execution capabilities and customer relationships to create long-term value for all stakeholders.

Building the Infrastructure That Powers Indias Growth

Indias infrastructure sector continues to play a pivotal role in driving economic development. Rapid urbanization, industrial expansion, increasing electricity demand and the transition towards cleaner sources of energy are accelerating investments in power transmission, distribution and associated infrastructure. Safety Controls & Devices Limited operates within this evolving ecosystem by executing engineering and EPC projects across multiple infrastructure segments.

Power Transmission & Distribution

A reliable transmission and distribution network forms the backbone of Indias power sector.

Expansion of substations, transmission lines and grid modernization continues to generate opportunities for specialized EPC companies capable of delivering quality engineering solutions.

The Companys project portfolio includes substation and transmission-related works.

Renewable Energy

Indias transition towards renewable energy has increased investments in solar infrastructure and grid integration. The Company has diversified into renewable energy EPC projects, strengthening its position in a growing segment of the infrastructure market.

Fire Protection Systems

Industrial facilities, commercial buildings and institutional projects continue to prioritize fire safety systems to meet regulatory requirements and operational safety standards. The Companys origins and experience in fire protection solutions provide a strong foundation in this segment.

EV Charging Infrastructure

The development of electric vehicle charging infrastructure represents an emerging opportunity. The Company has expanded into this segment as part of its diversification strategy described in the

Prospectus.

Institutional Infrastructure

Growing public investment in healthcare and institutional infrastructure has created opportunities for EPC companies. The Company has also undertaken institutional construction projects, broadening its service offerings.

OUR COMPETITIVE STRENGTHS

Technical Expertise

Experience in executing projects up to 400kV AIS substations, the company is positioned to compete for tenders and projects at the highest capacity levels in the industry. Owing to the technical expertise, the company qualify to participate in aggregate tenders of considerable financial value at any given time.

Well established association with Government entities

The company cater to a varied clientele, including public sector undertakings. A significant of the companys revenue is generated from the government awarded contracts.

Good relationship with Original Equipment

Manufacturer (OEMs) and suppliers

The company maintain established relationships with suppliers, dealers, and certain OEMs. These relationships have enabled the procurement of quality products at competitive rates, allowing the company to submit competitive bids and secure contracts.

Centralized operation

The company operate with a centralized mode of operation where every decision making be it a raw material procurement, workforce deployment, scope of project, execution, etc. is done centrally. This effectively negates the bottlenecks created by de-centralized kind of operation thereby saves time and effort, money and upholding the quality.

This also helps in effective and quick and conscious decision making.

Experienced Leadership and an efficient management team

The companys management brings extensive industry experience, offering guidance that is deeply rooted in knowledge and expertise. This collective experience provides the company with a strong competitive advantage, enabling it to expand the geographical and customer presence in both existing and targeted markets, while simultaneously exploring new avenues for growth.

Skilled workforce

The company have a dedicated and experienced workforce of approximately 60 (sixty) professionals include electrical engineers, civil engineers, Company Secretary and various other stream and vertical specialists.

Quality Assurance

The Company is an ISO 9001:2015 certified organization for Quality Management System. Each of the projects and deliverables follow stringent quality check and guidelines and all the employees adhere to it to deliver quality projects that we are known for.

Diversified offerings

The companys diversified portfolio offers services from power transmission and distribution to fire safety to renewable energy solutions, the array of offerings caters to various sectors, providing a one-stop-shop for businesses seeking efficiency and sustainability.

uses SF6 gas as insulation & for interruption. Insulating ability for SF6 gas is much higher hence equipments are smaller in size. Due to the technology & indoor installation, it occupies much smaller space, & substation can be built in area, which is almost 50 % of AIS hence saves space. It is most suitable for city areas & where land available is less & expensive. It is much more reliable also. At the same time, it is expensive than Hybrid or AIS. Other equipment such as CVTs, Transformers etc. are still installed outdoor. Control & Protections systems that control & and pressure during operate the substations are installed inside.

SOLAR ENERGY SOLUTIONS

The company has expanded into the field of Solar

Energy, providing comprehensive solutions for solar projects. The company offer end to-end services that spans every stage of a solar energy project, from designing and sourcing of materials to installation, testing and commissioning. The goal is to facilitate the transition to renewable energy, enabling our clients to adopt sustainable practices. The process begins with detailed site evaluations, determining the best locations and configurations for each solar installation based on solar irradiance and solar insolation, ensuring maximum energy output. Beyond installation, the company is committed to supporting the adoption of solar energy, contributing to a sustainable future. The solar solutions help Theseclientscontrols reduce their carbon footprint and align with their long-term sustainability objectives.

FIRE PROTECTION SYSTEMS

The company specializes in providing comprehensive fire protection services, focusing on the supply, installation, testing, and commissioning of Fire Hydrant Systems and related fire protection systems on a turnkey basis. Comprehensive

Solutions Our fire protection services encompass the entire lifecycle of a fire hydrant systems, Alarm System and Emulsifier System used in Substations for transformers from initial planning and design to final commissioning.

Solutions offered are as follows:

1. Fire Protection System (Hydrant System),

2. Fire Alarm System (Addressable & Conventional Both), and

3. Emulsifier and Nitrogen Injection Fire Protection System

4. Supply of Fire Hydrant Systems. Our testing procedures include:

• Hydrostatic Testing: To assess the integrity and pressure resistance of the piping system.

• Flow Testing: To ensure that the hydrants deliver adequate water flow emergencies.

Operational Testing: To confirm that all components function correctly, including valves, hydrants, and alarms. Training and after sales Support In addition to our core services, we believe in empowering our clients through training and support. After commissioning, we offer training sessions for the facility staff on the operations and maintenance of the fire hydrant systems.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Safety Controls & Devices Limited has established a comprehensive internal control system that is designed to ensure the integrity of financial reporting, safeguard company assets, and promote operational efficiency. are commensurate with the size, nature, and complexity of the companys operations.

The internal control framework includes clearly defined policies and procedures, segregation of duties, and periodic checks and audits across all departments. The Companys management regularly reviews the effectiveness of these controls, supported by an independent review and appraisal that includes systematic evaluations of risk areas and control processes. Any deviations or weaknesses identified are promptly addressed through corrective actions to strengthen the control environment. Additionally, the internal control systems ensure compliance with applicable laws, regulations, and accounting standards.

They also facilitate accurate and timely financial disclosures, thus supporting transparent communication with stakeholders. The Audit Committee of the Board actively oversees the adequacy and functioning of the internal control systems, ensuring continuous improvement and alignment with best practices.

During the year under review, the Company found its internal controls to be adequate and effective in achieving their intended objectives, with no significant rigorous internal controls, the Company strives to maintain a robust governance framework that supports sustainable growth and protects stakeholder interests.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year ended March 31, 2026,

Safety Controls & Devices Limited demonstrated a strong alignment between its operational performance and financial outcomes. The companys focus on enhancing production efficiency, optimizing resource utilization, and expanding its product portfolio has contributed significantly to its revenue growth and profitability.

The total revenue of the company showed an appreciable increase, reflecting higher sales volumes and improved market penetration. This growth was supported by a consistent demand for the companys paper products, both in domestic and international markets. Operational improvements, including cost control measures and process enhancements, positively impacted the companys gross and net profit margins. The companys efforts to maintain optimal inventory levels and streamline supply chain operations have further contributed to a better cash flow position. Capital expenditure on modernizing manufacturingfacilitiesandinvestingintechnology has laid a strong foundation for sustainable long-term growth.

While the financial performance reflects a healthy upward trajectory, the company remains cautious about external factors such as raw material price fluctuations and global economic uncertainties, which may influence future results.

Revenue from operations stood at Rs. 11,701.47 lakhs in FY2026 compared to Rs. 10,256.03 lakhs in FY2025 thereby registering a growth of 14.09%. PAT stood at Rs. 1,442.38 lakhs in FY2026 compared to Rs. 764.41 lakhs in FY2025, thereby registering a growth of 88.69%.

The company successfully filed its Draft Red

Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) with the SME platform of the Bombay Stock Exchange (BSE)

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.

Safety Controls & Devices Limited recognizes that its human resources are a critical asset driving the companys growth and success. During the year under review, the company continued to focus on strengthening its workforce through various initiatives aimed at enhancing employee skills, motivation, and engagement.

Training and development programs were conducted to equip employees with the latest industry knowledge and best practices, fostering a culture of continuous learning and improvement. The company maintained harmonious industrial relations throughout the year, emphasizing open communication and proactive conflict resolution mechanisms. Employee welfare initiatives, including health and safety measures, were prioritized to create a safe and conducive working environment.

As of March 31, 2026, the company employed approximately 77 Permanent employees in various departments across its corporate office, and other operational locations. The companys commitment to equal opportunity and diversity has been reflected in its recruitment and retention practices.

Safety Controls & Devices Limited remains dedicated to nurturing talent and fostering a collaborative workplace that supports innovation, productivity, and employee well-being, which are vital for sustaining the companys competitive advantage.

S No.	Ratio	31 March, 2026	31 March, 20255	Change in Per- centage	Expla-nations
1.	Debtors Turnover	0.95	1.22	-22%	Receivables remain higher in FY 2025 and FY 2024
2.	Inventory Turnover	6.65	4.85	35%	Inventory piled up as order increases in F/Y 2025
3.	Interest Coverage Ratio	1.95	1.94	0.52%	-
4.	Current Ratio	1.34	1.37	-2%	Below +/- 25%
5.	Debt Equity Ratio	0.84	0.83	0%	New loans taken in FY 2024, the same were repaid in FY 2025.
6.	Operating Profit Margin (%)	-9.59	-9.79	-2.04%	-
7.	Net Profit Margin (%)	12%	7%	65%	Below +/- 25%

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF.

The return on net worth for the current year ended on March 31, 2026 is 29.04% as compared to 31.34% during the fiscal year ended on March 31, 2025.

Metric	31 Mar 2026	31 Mar 2025
Return on Net Worth	29.04%	31.34%

CAUTIONARY STATEMENT

Statements in this Management Discussion and

Analysis report detailing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand supply conditions, raw material prices, finished goods prices, cyclical demand and pricing in the

Companys products and their principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries with which the Company conducts business and other factors such as litigation and / or labor negotiations.

For and on behalf of the Board of

SAFETY CONTROLS & DEVICES LIMITED

RAJNISH CHOPRA

Managing Director

(DIN: 07183037)

ABHISHEK CHOPRA

Whole Time Director

(DIN: 10281418)

Date: 31st August, 2026

Place: Lucknow