Snehaa Organics Ltd Directors Report

To,

The Members of Snehaa Organics Limited

The Board of Directors ("the Board") are pleased to present their 4^th (Fourth) Annual Report of Snehaa Organics Limited ("the Company/ Snehaa") on the business and operations of the Company, together with the Audited Standalone Financial Statements of the Company for the Financial Year ("Financial Year") ended March 31, 2026 (hereinafter referred as "Financial Year 2025-26" or "during the year").

FINANCIAL PERFORMANCE/SUMMARY

Particulars	Standalone March 31, 2026	Standalone March 31, 2025
Share Capital	1,017.90	750.00
Reserves and Surplus	4,157.81	727.63
Revenue from Operations	4,936.53	2,622.33
Other Income	187.86	7.12
Total Income	5,124.39	2,629.45
Total Expenses	4,032.04	1,648.16
Profit Before Tax	1,092.34	981.29
Tax Expense - Current Tax	287.98	237.36
Tax Expense - Deferred Tax	(1.59)	10.11
Profit After Tax	805.95	733.82
Earnings Per Share (Basic & Diluted) (INR)	8.93	9.78

REVIEW OF OPERATIONS / STATE OF COMPANYS AFFAIRS FOR THE FY 2025-26

Snehaa Organics Limited, headquartered in Hyderabad, Telangana, is engaged in the business of handling, purification and recycling of solvents. The Company has established itself as a trusted name in the industry by delivering high-quality recovered solvents with a strong emphasis on sustainability, safety and innovation.

Incorporated in 2022 (having earlier operated as a partnership firm under the name Snehaa Pharma Chemicals prior to conversion), the Company has, under its present management, witnessed robust growth marked by expansion of facilities, adoption of advanced technologies and enhancement of operational capabilities to serve the growing and diverse requirements of its clientele. The Company was converted from a private limited company to a public limited company with effect from January 7, 2025, and its name was accordingly changed from Snehaa Organics Private Limited to Snehaa Organics Limited.

The most significant corporate event of FY 2025-26 was the Companys maiden Initial Public Offering (IPO). Pursuant to the IPO, 26,79,000 (Twenty-Six Lakh Seventy-Nine Thousand) equity shares of INR 10/- each were allotted at a premium of INR 112/- per share (issue price INR 122/- per share), aggregating INR 32,68,38,000/-, with allotment made on September 3, 2025. The equity shares of the Company were listed on the Emerge Platform of the National Stock Exchange of India Limited (NSE Emerge) with effect from September 5, 2025.

During the financial year under review, the Company reported Revenue from Operations of INR 4,936.53 lakhs for the year ended March 31, 2026, as compared to INR 2,622.33 lakhs in the previous year, an increase of approximately 88.24%. Including Other Income of INR 187.86 lakhs, the Total Income for the year stood at INR 5,124.39 lakhs, as against INR 2,629.45 lakhs in FY 2024-25.

Total Expenses for the year stood at INR 4,032.04 lakhs, as compared to INR 1,648.16 lakhs in the previous year, in line with the corresponding increase in scale of operations.

Consequently, the Company reported a Profit Before Tax of INR 1,092.34 lakhs in FY 2025-26, as compared to INR 981.29 lakhs in FY 2024-25. After accounting for a current tax expense of INR 287.98 lakhs and a deferred tax credit of INR 1.59 lakhs, the Profit After Tax stood at INR 805.95 lakhs, as against INR 733.82 lakhs in the preceding year.

The Reserves and Surplus of the Company stood at INR 4,157.81 lakhs as of March 31, 2026, as compared to INR 727.63 lakhs in the previous year, primarily on account of the securities premium received pursuant to the IPO and profits earned during the year.

The Earnings Per Share (EPS) stood at INR 8.93 in FY 2025-26, as compared to INR 9.78 in FY 2024-25.

The annual Audited Financial Statements for the financial year ended March 31, 2026 have been prepared in accordance with the applicable provisions of the Companies Act, 2013 ("the Act"), Accounting Standards ("AS") and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations").

As required under Section 136 of the Companies Act, 2013, audited financial statements including all other documents required to be attached thereto are available on the website of the Company i.e. www.snehaaorganics.com. These documents will also be available for inspection during business hours at the registered office of the Company.

Our IPO — A Defining Milestone in FY 2025-26

The most significant milestone in Snehaa Organics Limiteds journey during FY 2025-26 was its maiden Initial Public Offering (IPO), marking the Companys transition from a privately-held enterprise into a publicly listed company on Indias capital markets.

Having converted from a private limited company to a public limited company with effect from January 7, 2025, the Company took the next decisive step in its growth story with the launch of its IPO. The issue opened for public subscription on August 29, 2025 and closed on September 2, 2025, receiving an encouraging response from investors and closing fully subscribed — a strong endorsement of the Companys business model, financial performance and growth trajectory in the solvent recovery and recycling sector.

Pursuant to the IPO, the Company allotted 26,79,000 equity shares of face value INR 10 each at an issue price of INR 122 per share (comprising a premium of INR 112 per share), raising gross proceeds of INR 32.68 crore (INR 3,268.38 lakhs). Allotment was completed on September 3, 2025, and the Companys equity shares commenced trading on the EMERGE Platform of the National Stock Exchange of India Limited (NSE Emerge) with effect from September 5, 2025.

The successful listing represents a watershed moment in the Companys history — widening its access to public capital, enhancing its visibility and credibility among customers, suppliers and investors, and establishing a strong platform to fund future growth, capacity expansion and technology upgradation. In keeping with its commitment to good governance, the Company has confirmed to the stock exchange that the IPO proceeds have been utilised, to the extent deployed, strictly in accordance with the objects stated in the Prospectus, with no deviation or variation.

IPO — Key Facts at a Glance

Particulars	Details
Subscription Opened	August 29, 2025
Subscription Closed	September 2, 2025
Subscription Status	Fully Subscribed
Issue Price	INR 122 per equity share (Face Value INR 10 + Premium INR 112)
Equity Shares Allotted	26,79,000 shares
Allotment Date	September 3, 2025
Listing Date	September 5, 2025
Stock Exchange	NSE Emerge (SME Platform)
Gross Proceeds Raised	INR 32.68 crore (INR 3,268.38 lakhs)

CHANGE IN BUSINESS:

There has been no change in the business of the Company during the financial year ended March 31, 2026, other than as listed below. Please refer our website www.snehaaorganics.com for details on business.

a) Listing on NSE Emerge Platform.

b) During the year, the Company established a separate business unit under the name "Vestro Chemicals" (Unit of Snehaa Organics Limited) to undertake trading in solvents, chemicals and acids. The unit operates within the existing legal entity of the Company under a separate GST registration and a distinct operational and accounting framework for better focus and performance monitoring; it is not a subsidiary, joint venture or associate, and its establishment did not involve any acquisition of business, assets or undertaking from any person, including any related party. An intimation in this regard was made to the National Stock Exchange of India Limited on under Regulation 30 of the SEBI Listing Regulations. The unit recorded Revenue from as included in Notes to the financial statements. The Company operates in a single reportable segment under AS 17, and the units results are accordingly presented as part of the Companys financial statements. Other than the above and the listing referred to earlier, there has been no change in the nature of the business of the Company during the year.

REPORT ON SUBSIDIARIES/JOINT VENTURE

The Company does not have any subsidiaries or joint ventures as of the reporting period. The Company operates independently and has not engaged in any joint ventures or established any subsidiary companies.

Names of companies which have become Subsidiaries, joint ventures, or associate companies during the financial year 2025-26: NIL

Names of companies which have ceased to be Subsidiaries, joint ventures, or associate companies during the financial year 2025-26: NIL

TRANSFER TO RESERVES

The Board of Directors did not propose to transfer any amount to reserves for the period under review. DIVIDEND

Considering the estimated cash flow requirements and the need to conserve resources for future business operations, expansion, and growth, the Board of Directors has decided not to recommend any dividend for the financial year ended March 31, 2026.

CAPITAL STRUCTURE

Authorized Share Capital:

As on March 31, 2026, the authorized share capital of the Company stands at INR 11,00,00,000/- (Indian Rupees Eleven Crores Only) divided into 1,10,00,000 (One Crore Ten Lakhs) equity shares of INR 10/- (Indian Rupees Ten Only) each.

Subscribed, Issued, and Paid-Up Capital:

As on March 31, 2026, the Subscribed, Issued, and Paid-up Capital of the Company stands at INR 10,17,90,000/- (Indian Rupees Ten Crores Seventeen Lakhs Ninety Thousand Only) comprising 1,01,79,000 (One Crore One Lakh Seventy-Nine Thousand) Equity Shares of INR 10/- (Indian Rupees Ten Only) each.

During the year, the issuance and allotment of securities were conducted as follows:

Nature of allotment	Date of Allotment	Number of Equity Shares allotted	Face value per Equity Share (INR)	Issue price per Equity Share (INR)	Nature of consideration
Fresh Issue of Equity Shares pursuant to Initial Public Offer (IPO) on NSE Emerge	September 3, 2025	26,79,000	10/-	122/-	Cash

Utilization of IPO Proceeds:

Pursuant to the IPO, the Company raised gross proceeds of INR 3268.38 Lakhs. The object-wise utilisation of the said proceeds as at March 31, 2026 is as under:

Original Object	Original Allocation (INR in Lakhs)	Funds Utilized (INR in Lakhs)	Unutilized Funds (INR in Lakhs)	Remarks
Issue-related Expenses	326.58	326.58	-	Not Applicable
Repayment of Loans	350.00	350.00	-	Fully repaid
Working Capital Requirement	2,394.17	1,256.93	1,137.24	Out of the unutilized amount, INR. 1000.00/- Lakhs is in Fixed Deposits and 238.41/-Lakhs in a bank account.
General Corporate Purpose	197.63	96.45	101.18
Total	3,268.38	2,029.97	1,238.41

In accordance with Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has submitted the Statement of Deviation(s) or Variation(s) confirming that there has been no deviation in the utilization of IPO proceeds. The proceeds utilised up to March 31, 2026, aggregating INR 2,029.97 Lakhs, have been applied for the purposes approved by the shareholders, and the unutilised balance of INR 1,238.41 Lakhs is held in fixed deposits/designated bank accounts pending utilisation in accordance with the objects of the Issue.

The detailed statement in this regard has been filed with the National Stock Exchange of India Limited (NSE) on May 28, 2026, under the corporate announcements section.

DIRECTORS

During the year under review, no changes took place in the composition of the Board of Directors and Key Managerial Personnel of the Company.

As on March 31, 2026, the Company has 5 (Five) Directors with an optimum combination of Executive and Non-Executive Directors, comprising 2 (Two) Promoter Executive Directors, 1 (One) Non-Executive NonIndependent Director, and 2 (Two) Non-Executive Independent Directors, as under:

DIN	Name	Designation	Category
1 07986570	Venkata Sai Kiran Nandigala	Managing Director	Promoter - Executive
2 07967075	Venkata Sai Harish Nandigala	Whole-time Director	Promoter - Executive
3 10913944	Samhitha Reddy Tera	Non-Executive Director	Promoter - non-executive
4 10872432	Khushbu Kachhawa	Independent Director	Non-Executive
5 10894590	Gurprit Kaur	Independent Director	Non-Executive

Pursuant to the provisions of Section 149 of the Act, the Independent Directors have submitted declarations that each of them meets the criteria of independence as provided in Section 149(6) of the Act along with the Rules framed thereunder and Regulation 16(1)(b) of the SEBI Listing Regulations. There has been no change in the circumstances affecting their status as independent directors of the Company.

Pursuant to the provisions of Section 152 of the Companies Act, 2013 read with the Companies (Appointment and Qualification of Directors) Rules, 2014, Mr. Venkata Sai Harish Nandigala (DIN: 07967075), Whole Time Director is liable to retire by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment to the office of directorship.

A Brief profile of Mr. Venkata Sai Harish Nandigala along with the nature of his expertise and the number of companies in which he hold directorship and membership / chairmanship of committees of the Board and other requisite details, as stipulated under Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations" or "SEBI (LODR) Regulations, 2015") and Secretarial Standard 2 as issued by the Institute of Company Secretaries of India is given below.

Name of the Director	Mr. Venkata Sai Harish Nandigala
DIN	07967075
Date of Birth	January 21, 1998
Date of first appointment on the Board	July 05, 2022
Age	28 years
Brief Resume	He holds a bachelors degree in Business Administration (Finance) from Alliance University. He has work experience of more than 7 years in managing family-owned businesses, with a strong focus on operational efficiency and partnership building. He has been associated with our Company since July 05, 2022.
Qualification	Bachelor of Business Administration (Finance) from Alliance University
Experience	Mr. Venkata Sai Harish Nandigala has a solid foundation in international business, finance, and the petrochemical industry, he has a proven track record of driving innovation and sustainable growth and industrial sectors. With over 7 years of experience in managing family-owned businesses, Harish has played a pivotal role in Vedant Petrochem Pvt. Ltd., where he served as the Director. Under his leadership, the company emerged as a trusted supplier of high-quality petroleum products to various industries, building strong partnerships and operational efficiencies.
Terms & Conditions of appointment along with Remuneration sought to be paid	Appointed as Whole Time Director (Promoter cum Executive Director) and overall maximum managerial remuneration set to INR 26,66,664 (Indian Rupees Twenty-Six Lakhs Sixty-Six Thousand Six Hundred Sixty-Four Only) and shall be entitled to Salary, Allowance and Perquisites, as determined under the provisions of the Companies Act, 2013 read with the provisions of Income Tax Act, 2025.
Remuneration last drawn	2,22,222 Per Month
Disclosure of relationships between directors inter- se/Relationship with other Directors, Manager, and other Key Managerial Personnel of the Company	The appointee is brother of Mr. Venkata Sai Kiran Nandigala, Managing Director and Spouse of Mrs. Samhitha Reddy Tera and has no relationship with any of the other Directors, Manager, or other Key Managerial Personnel of the Company.
Nature of his expertise in specific functional areas	Operations Management, Quality Management, Team Leadership, Process Improvement, Risk Management.
Number of Meetings of the Board attended during the year 2025-26	17 (Seventeen)
Names of Companies/LLP in which he holds the directorship	• Vestro Chemical Corporation Private Limited
	• Vedant Petrochem Private Limited
	• Vestro Solvents Private Limited
	• Vedant Agri Foods Private Limited
	• Vedant Logitech Private Limited
	• Vestro Labs Private Limited
Names of listed entities in which he holds the directorship	Nil except Snehaa Organics Limited
Names of Companies in which he holds the membership of Committees of the Board
Names of listed entities in	-
which he holds the membership of Committees of the board
Shareholding in the Company including shareholding as a beneficial owner	37,50,000 equity shares and (36.84) % of the Company.

KEY MANAGERIAL PERSONNEL DURING THE YEAR

• Mr. Venkata Sai Kiran Nandigala is the Managing Director of the Company.

• Mr. Venkata Sai Harish Nandigala is the Whole-time Director of the Company.

• Mr. Sarath Chandra Bhojanapalli is the Chief Financial Officer of the Company.

• Ms. Poonam Jain is the Company Secretary and Compliance Officer of the Company.

BOARD AND COMMITTEE MEETINGS

During the year under review, 17 (Seventeen) meetings of the Board of Directors were duly convened and held in compliance with the Companies Act, 2013 and in respect of said meetings proper notices were given and proceedings were properly recorded and signed in the Minute Book maintained for the purpose.

The dates of Board meetings are as follows:

Date of Board meeting	No. of Directors entitled to attend	No. of Directors who attended the meeting
1. April 19, 2025	5	5
2. April 22, 2025	5	5
3. May 12, 2025	5	5
4. June 02, 2025	5	5
5. August 08, 2025	5	5
6. August 11, 2025	5	5
7. August 12, 2025	5	5
8. August 14, 2025	5	5
9. August 18, 2025	5	5
10. August 21, 2025	5	5
11. September 03, 2025	5	5
12. September 25, 2025	5	5
13. October 18, 2025	5	5
14. November 13, 2025	5	5
15. January 20, 2026	5	5
16. February 16, 2026	5	5
17. March 10, 2026	5	5

The Board of Directors confirms compliance and adherence to Secretarial Standard 1 and Secretarial Standard 2 as issued by the Institute of Company Secretaries of India and notified by the Ministry of Corporate Affairs.

DECLARATION BY INDEPENDENT DIRECTORS

Your Company has received declarations from all the Independent Directors of the Company confirming that:

• They meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015;

• They have registered their names in the Independent Directors Databank pursuant to Sub-rule (1) and (2) of Rule 6 of the Companies (Appointment and Qualifications of Directors) Rules, 2014 and amendments thereto;

• None of the Directors of the Company are disqualified for being appointed as Directors as specified in Section 164(2) of the Act and Rule 14(1) of the Companies (Appointment and Qualification of Directors) Rules, 2014.

In the opinion of the Board, the Independent Directors possess the requisite integrity, expertise, experience, and proficiency.

FAMILIARIZATION PROGRAM

During the financial year 2025-26, the Company continued to familiarise its Independent Directors with the business, operations and regulatory environment through various programmes and periodic interactions.

The Independent Directors were apprised, through meetings of the Board and its Committees, of their roles, rights, responsibilities and duties under the applicable laws. They were also provided regular updates on the Companys business model, operational and business verticals, industry developments, financial performance, statutory and regulatory changes, risk management framework, corporate governance practices and other significant business developments.

To enable them to gain a deeper understanding of the Companys operations, the Independent Directors interacted with the Senior Management and business heads, and were provided with such documents, reports, presentations and internal policies as considered necessary. These initiatives helped the Independent Directors remain well-informed and effectively contribute to the deliberations and decision-making process of the Board.

Weblink:

https://snehaaorganics.com/wp-content/uploads/2025/03/04.-Familiarization-Programme-for-Independent-

Directors-Pending.pdf

PERFORMANCE EVALUATION, NOMINATION & REMUNERATION POLICY

The Company has in place a Performance Evaluation, Nomination and Remuneration Policy in compliance with the provisions of Section 178 of the Companies Act, 2013 and Regulation 19 read with Part D of Schedule II of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Policy provides a comprehensive framework for identifying and recommending suitable candidates for appointment as Directors and members of the Senior Management, prescribing the criteria for determining qualifications, positive attributes and independence of Directors, and recommending their appointment or removal. It also sets out the principles governing the remuneration of Directors, Key Managerial Personnel and Senior Management Personnel to ensure that the remuneration structure is fair, competitive and adequate to attract, retain and motivate competent professionals.

Further, the Policy lays down the methodology and criteria for the annual performance evaluation of the Board, its Committees and Individual Directors, and defines the roles and responsibilities of the Nomination and Remuneration Committee in accordance with the applicable provisions of the Companies Act, 2013 and the SEBI Listing Regulations.

Performance evaluation, nomination and remuneration policy is available on the website of the Company. Weblink: https://snehaaorganics.com/wp-content/uploads/2025/03/08.-Policy-for-evaluation-of-performance-of- Independent-Directors-and-Directors.pdf

Pursuant to the provisions of the Companies Act, 2013 read with the Rules made thereunder and Regulation 17(10) and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the annual performance evaluation of the Board, its Committees and individual Directors was carried out during the year. The evaluation was based on various parameters including composition of the Board and its Committees, effectiveness of Board processes, participation and contribution of Directors, strategic guidance, governance practices and fulfilment of statutory responsibilities. The Independent Directors also evaluated the performance of the Non-Independent Directors, the Chairperson and the Board as a whole in a separate meeting held without the presence of the Non-Independent Directors and members of the management.

EVALUATION OF PERFORMANCE OF THE BOARD, ITS COMMITTEES AND DIRECTORS

Pursuant to the provisions of the Companies Act, 2013 and the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has established a structured framework for the annual evaluation of its own performance, that of its Committees and Individual Directors, including the Chairperson.

The evaluation was undertaken through a comprehensive assessment process covering, inter alia, the effectiveness of the Board and Committee composition, diversity of skills and experience, discharge of statutory and fiduciary responsibilities, quality of deliberations and decision-making, governance practices, strategic oversight and overall functioning of the Board and its Committees.

The performance of Individual Directors was evaluated based on various parameters including attendance and participation in meetings, quality of contribution to Board deliberations, strategic guidance, professional expertise, independent judgment and fulfilment of their roles and responsibilities. The performance of the Chairperson, Non-Independent Directors and the Board as a whole was evaluated by the Independent

Directors, while the Independent Directors were evaluated by the entire Board, excluding the Director being evaluated.

In accordance with Schedule IV to the Companies Act, 2013 and the SEBI Listing Regulations, a separate meeting of the Independent Directors was held on March 18, 2026, without the presence of the NonIndependent Directors and members of the Management. At the meeting, the Independent Directors reviewed the performance of the Non-Independent Directors, the Chairperson and the Board as a whole. They also assessed the quality, quantity and timeliness of the information and other support provided by the Management to enable the Board to effectively discharge its responsibilities

Opinion of the Board

Based on the outcome of the evaluation, the Board is of the opinion that all the Directors, including the Independent Directors, possess the requisite integrity, expertise, experience and proficiency necessary for effectively discharging their duties and responsibilities. The Board further confirms that, in its opinion, the Independent Directors satisfy the criteria of independence as prescribed under the Companies Act, 2013 read with the Rules made thereunder and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and are independent of the Management.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(3)(c) and 134(5) of the Companies Act, 2013, the Board of Directors of the Company hereby confirms:

• that in the preparation of the Annual Accounts, the applicable accounting standards have been followed;

• that 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 and Loss of the Company for that period;

• that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• that the Directors have prepared the Annual Accounts for the Financial Year ended March 31, 2026 on a going concern basis;

• that 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

• that 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.

STOCK EXCHANGE LISTING

The Equity Shares of the Company were listed on the Emerge Platform of the National Stock Exchange of India Limited (NSE Emerge) with effect from September 5, 2025, pursuant to the Companys Initial Public Offer.

The Company confirms that it has paid Annual Listing Fees to the stock exchange.

AUDITORS AND THEIR REPORT Statutory Auditors

M/s Phanindra & Associates, Chartered Accountants (FRN: 013969S), were appointed as Statutory Auditors of the Company from the conclusion of 3^rd Annual General Meeting held on August 23, 2025 till the conclusion of 8^th Annual General Meeting of the company to be held in the year 2030.

The Company has received the audit report on the standalone audited financial statements for the financial year ended March 31, 2026 from the Statutory Auditors, M/s Phanindra & Associates, Chartered Accountants, which forms part of this Annual Report. There are no qualifications, reservations, adverse remarks, or disclaimers made by the Statutory Auditors in their Report, and no fraud has been reported by the Auditors under Section 143(12) of the Act.

Internal Auditors

Your directors at their board meeting held on January 20, 2026 had appointed M/s M K P R & Associates (FRN: 0021933S), Chartered Accountants, as Internal Auditors of the Company to conduct internal audit for 3 years from financial year 2025-2026 till 2027-28.

Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, and Regulation 24A of the SEBI Listing Regulations, Ms. Priyanka Rajora, Proprietor of M/s Rajora and Co, (CP No. 22886), Practicing Company Secretaries (PR No: S2020TL722100), was appointed as the Secretarial Auditor of the Company for a term of five consecutive years, commencing from Financial Year 2025- 26 till Financial Year 2029-30, at the Annual General Meeting held on August 23, 2025.

The Secretarial Audit Report for the financial year ended March 31, 2026 is annexed to this Boards Report as Annexure I.

Cost Auditors

Appointment of Cost Auditor under Section 148 of the Companies Act, 2013 is not applicable to the Company.

MAINTENANCE OF COST RECORDS

Pursuant to Section 148(1) of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014, the provisions relating to maintenance of cost records are not applicable to the Company during the year under review.

ANNUAL RETURN

The Annual Return will be available on the website of the Company, as mandated under Section 92(3) read with Section 134(3) of the Companies Act, 2013 and the same can be accessed at web link: https://snehaaorganics.com/investor-relations/

PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is enclosed as Annexure II and forms part of this Annual Report.

The number of employees as on the closure of financial year March 31, 2026:

Female: 2 Male: 58 Transgender: 0

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186

• Whether any loan, guarantee is given by the Company or securities of any other body corporate purchased - No

• Are there any reportable transactions on which Section 186 applies (whether or not threshold exceeds 60% of paid-up share capital, free reserves and securities premium account, or 100% of free reserves and securities premium account) - No

• Brief details as to why the transaction is not reportable - There are no Loans, Guarantees, or Investments during the FY 2025-26.

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

(a) Details regarding technology absorption as per Rule 8(3)(B)

• Efforts made towards technology absorption: The Company has not undertaken any specific activities during the year towards technology absorption.

• Benefits derived like product improvement, cost reduction, product development or import substitution: Not Applicable.

• Details of imported technology (last three years): NIL

• Expenditure incurred on Research & Development: NIL

(b) Details regarding energy conservation as per Rule 8(3)(A)

• Steps taken or impact on conservation of energy: The Companys operations do not consume significant amounts of energy; specific steps towards energy conservation are accordingly not required.

• Capital investment on energy conservation equipment: Not Applicable.

(c) Foreign Exchange Earnings and Outgo

• Foreign Exchange Earnings: NIL

• Foreign Exchange Outgo: NIL

ADEQUACY OF INTERNAL FINANCIAL CONTROL SYSTEM

The Board of Directors is responsible for ensuring that the Company has an adequate and effective system of internal financial controls. The Company has established internal financial controls commensurate with the nature, size and complexity of its business operations, which are operating effectively.

The internal control framework is designed to ensure the orderly and efficient conduct of business, safeguard the Companys assets, ensure compliance with applicable laws, regulations and internal policies, prevent and detect frauds and errors, maintain the accuracy and completeness of accounting records, and facilitate the timely preparation of reliable financial information.

The Management periodically reviews and evaluates the effectiveness of the internal financial control system and monitors compliance with the Companys operating procedures, accounting policies and statutory requirements. Based on such reviews, the Board is satisfied that the Companys internal financial controls are adequate and effective

DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND VIGIL MECHANISM/WHISTLE BLOWER POLICY

The Board of Directors of the Company had duly constituted the Audit Committee on January 21, 2025 under the applicable provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

During the year under review, there were no changes in the composition of the Audit Committee and the composition of the Audit Committee as on March 31, 2026 is as under:

Name of Director	Status in Committee	Nature of Directorship
Mrs. Gurprit Kaur	Chairperson	Independent Director
Ms. Khushbu Kachhawa	Member	Independent Director
Mr. Venkata Sai Kiran Nandigala	Member	Executive Director (MD)

During the financial year ended on March 31, 2026, the Audit Committee met 5 (Five) times viz. June 02, 2025, August 14, 2025, November 13,2025, January 20, 2026 and March 10, 2026.

The Company has a Vigil Mechanism/Whistle Blower Policy providing Directors and employees a formal mechanism for reporting genuine concerns relating to unethical behaviour, actual or suspected fraud, or violations of the Companys Code of Conduct and applicable laws, with adequate safeguards against victimisation and direct access to the Chairperson of the Audit Committee in appropriate cases.

The Whistleblower Policy of the Company may be accessed on the Company website at the link: https://snehaaorganics.com/wp-content/uploads/2025/03/02.-Whistle-Blower-Policv.pdf

OTHER COMMITTEES

a) Composition of the Nomination and Remuneration Committee and its meetings:

The Board of Directors of your Company had duly constituted the Nomination & Remuneration Committee on January 21, 2025 under the applicable provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

During the year under review, there were no changes in the composition of the Nomination & Remuneration Committee and the composition of the Nomination & Remuneration Committee as on March 31, 2026 is as under:

Name of Director	Status in Committee	Nature of Directorship
Mrs. Gurprit Kaur	Chairperson	Independent Director
Ms. Khushbu Kachhawa	Member	Independent Director
Mrs. Samhitha Reddy Tera	Member	Non-Executive-Non-Independent Director

During the financial year ended on March 31, 2026, the Nomination & Remuneration Committee met 4 (Four) times viz. November 13, 2025, January 20, 2026, February 16, 2026 and March 10, 2026.

b) Composition of the Stakeholders Relationship Committee and its meetings:

The Board of Directors of your Company had duly constituted Stakeholders Relationship Committee on January 21, 2025 under the applicable provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

During the year under review, there were no changes in the composition of the Stakeholders Relationship Committee and the composition of the Stakeholders Relationship Committee as on March 31, 2026 is as under:

Name of Director	Status in Committee	Nature of Directorship
Mrs. Gurprit Kaur	Chairperson	Independent Director
Ms. Khushbu Kachhawa	Member	Independent Director
Mrs. Samhitha Reddy Tera	Member	Non-Executive-Non-Independent Director

During the financial year ended on March 31, 2026, the Stakeholders Relationship Committee met 4 (Four) times viz. November 13, 2025, January 20, 2026, February 16, 2026 and March 10, 2026.

PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE

Your Company has in place a Policy against Sexual Harassment at workplace in line with the requirement of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Policy is available on the website of the Company at https://snehaaorganics.com/wp-content/uploads/2025/03/10.- Policv-on-Sexual-Harassment-of-Women-at-Workplace.pdf

Particulars	No.
1 Number of complaints on Sexual harassment Received	Nil
2 Number of complaints disposed off during the Year	Nil
3 Number of cases pending for more than ninety Days	Nil
4 Number of workshops or awareness programme against sexual harassment carried out The Company regularly conducts necessary awareness programmes for its employees	Nil
5 Nature of action taken by the employer or district officer	Nil

The Company has constituted an Internal Complaints Committee (ICC) in accordance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, to address complaints relating to sexual harassment at the workplace.

The Companys policy is applicable to all women employees, including permanent, contractual, temporary employees and trainees, as well as women visiting the Companys premises for any official purpose. The Company is committed to providing a safe, secure and respectful work environment that is free from sexual harassment in any form, whether physical, verbal or psychological.

During the financial year under review, no complaints relating to sexual harassment were received by the Internal Complaints Committee.

RISK MANAGEMENT

The Company has established a structured risk management framework to identify, assess, monitor and mitigate key business risks that may impact its operations, financial performance or strategic objectives. The framework facilitates timely identification of existing and emerging risks and ensures that appropriate mitigation measures are implemented to minimise their potential impact and support the sustainable growth of the business.

The Board periodically reviews the key risks faced by the Company and the effectiveness of the measures adopted to manage such risks. Further details on the Companys risk profile and mitigation measures are provided under the "Threats, Risks and Concerns" and "Internal Control Systems and their Adequacy" sections of the Management Discussion and Analysis Report.

In terms of Regulation 15(2)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the provisions relating to the constitution of a Risk Management Committee are not applicable to the Company, being an SME-listed entity.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

All transactions entered into with Related Parties as defined under the Companies Act, 2013 read with the Rules made thereunder, during the financial year were in the ordinary course of business and on an arms length basis, and do not attract the provisions of Section 188 of the Companies Act, 2013. As a matter of prudent corporate governance, the Board of Directors/Audit Committee have approved such related party transactions.

The Form No. AOC-2 pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014 is enclosed as Annexure-III to this Report.

The Company derives a significant portion of its revenue from operations and trade receivables from related parties (approximately 52% of revenue and approximately 55% of trade receivables outstanding as at March 31, 2026, per Note 33 to the financial statements). While transactions with such related parties are conducted at arms length and on commercial terms, this concentration exposes the Company to a higher degree of business and credit risk, and the Company is taking active steps to diversify its customer base.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management Discussion and Analysis Report for the financial year ended March 31, 2026 forms part of this Annual Report.

CORPORATE GOVERNANCE

Since, the Company has listed its specified securities on the EMERGE Platform of NSE therefore by virtue of Regulation 15 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 the compliance with the corporate governance provisions as specified in regulations 17, 17A, 18, 19, 20, 21, 22, 24, 24A, 25, 26, 26A, 27 and clauses (b) to (i) and (t) of sub-regulation (2) of regulation 46 and para C, D and E of Schedule V are not applicable to the Company. Hence, the Report on Corporate Governance does not form part of this Boards Report. However, pursuant to the proviso to Regulation 15(2) inserted by the SEBI (LODR) (Amendment) Regulations, 2025 (effective April 1, 2025), the provisions of Regulation 23 (Related Party Transactions) have become applicable to the Company with effect from April 1, 2026, as its paid-up equity share capital (INR 10.18 crore) exceeded the prescribed threshold as on March 31, 2026. The Company is ensuring compliance within the prescribed period of six months, including approval of material related party transactions by the Members at the ensuing Annual General Meeting.

The provisions of Corporate Governance as stipulated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are presently not applicable to the Company. However, the Company remains committed to maintaining high standards of governance and ethical conduct.

Your Company follows robust corporate governance practices, prudent risk management, and maintains a proactive approach towards identifying emerging opportunities. Emphasis is placed on stakeholder value creation and transparency, with the adoption of best-in-class disclosure methodologies.

Further, the Company voluntarily endeavors to comply with the non-mandatory requirements of corporate governance to the extent possible, and continues to take necessary actions at appropriate times to align with stakeholder expectations.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Board of Directors of your Company had not constituted the Corporate Social Responsibility (CSR) Committee as the amount to be spent by the company under section 135(5) of the Companies Act. 2013 does not exceed fifty lakh rupees, hence, the requirement for constitution of the Corporate Social Responsibility Committee is not be applicable and the functions of such Committee be discharged by the Board of Directors of the Company.

Your Company believes in contributing to harmonious and sustainable development of society and that a companys performance must be measured not only by its bottom line but also with respect to the social contributions made by the company while achieving its financial goals. During the year under review, the Company primarily focused its CSR activities on promoting healthcare, including preventive healthcare and medical relief, with particular emphasis on providing support to economically disadvantaged, homeless and physically challenged persons. In furtherance of these objectives, the Company incurred CSR expenditure of INR 13.00 lakh during the financial year.

The CSR policy of the Company may be accessed on the Company website at the link: https://snehaaorganics.com/investor-relations/

The Annual Report on CSR Activities is annexed herewith as "Annexure - IV".

In terms of rule (9) of the Companies (Accounts) Rules, 2014, the Company has developed Corporate Social Responsibility initiatives and has a CSR Policy in place.

COMPANYS WEBSITE

Your Company has developed and maintained its fully functional website https://snehaaorganics.com/, which has been designed to exhibit the Companys businesses upfront on the home page and all the relevant details about the Company.

The website carries a comprehensive database of information of the Company including the Financial Results of your Company, Shareholding Pattern, details of Board Committees, Corporate Policies, business activities and current affairs of your Company. All the mandatory information and disclosures as per the requirements of the Companies Act, 2013, Companies Rules, 2014 and as per Regulation 46 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 and the non-mandatory information of Investors interest / knowledge has been duly presented on the website of the Company.

COMPLIANCE WITH THE CODE OF CONDUCT AND ETHICS

Pursuant to the requirements of the Listing Regulations and the Companies Act, 2013, the Company has adopted a Code of Conduct and Ethics ("the Code") applicable to the members of the Board, Senior Management Personnel, executive officers, and all employees of the Company.

The Board members and Senior Management Personnel have confirmed their compliance with the Code for the financial year ended March 31, 2026. A declaration to this effect, duly signed by the Chairman and

Managing Director, forms part of this Annual Report.

GENERAL

Your directors further state that no disclosure or reporting is required in respect of the following items, as there were no transactions on these items during the year under review:

a) The Company has neither accepted nor renewed any deposits from the public or otherwise in terms of Section 73 of the Companies Act, 2013 read with the rules made thereunder and as such no amount on account of principal or interest thereon on deposits from public was outstanding as on the date of Balance Sheet.

b) The Company has not issued any sweat equity shares during the year under review, and hence no information under Section 54(1)(d) of the Act read with Rule 8(13) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.

c) The Company has in place proper systems to ensure compliance with the applicable Secretarial Standards issued by The Institute of Company Secretaries of India, and such systems are adequate and operating effectively.

d) There is no issue of equity shares with differential rights as to dividend, voting or otherwise.

e) There were no significant or material orders passed by Regulators, Courts or Tribunals which impact the going concern status and the Companys operations in future.

However, the Company had received a Show Cause Notice and Summary in Form GST DRC-01 (Notice No. ZD361120125422 dated November 13, 2021) pertaining to FY 2019-20, involving an amount of INR 7,71,481.64, against which the Company filed an appeal that was admitted and the same was disposed off vide order dated September 08, 2025.

f) In addition to the information mentioned in this annual report, there were no material changes and commitments affecting financial position of the company between March 31, 2026 and the date of this Boards Report.

g) The Auditors have not reported any matter under Section 143(12) of the Companies Act, 2013; no detail is accordingly required to be disclosed under Section 134(3)(ca) of the Act.

h) There is no one time settlement done with bank or any financial institution. Hence, the details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institutions is not applicable.

i) There is no proceeding pending under the Insolvency and Bankruptcy Code, 2016, and the Company has not made any application thereunder during FY 2025-26.

j) The Company is in compliance with the applicable provisions of the Maternity Benefit Act, 1961, as amended from time to time. Necessary measures and policies are in place to ensure that all eligible employees receive the benefits and protections mandated under the Act.

OTHER DISCLOSURES:

Your directors state the status of disclosure or reporting requirement in respect of the following items, for the transactions/events related to these items during the year under review:

a. Non-applicability of certain Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time:

As per Regulation 15 of the SEBI (LODR) Regulations, 2015 the compliance with the corporate governance provisions as specified in regulations 17, 17A, 18, 19, 20, 21, 22, 24, 24A, 25, 26, 27 and clauses (b) to (i) and (t) of sub-regulation (2) of regulation 46 and para-C, D and E of Schedule V shall not apply to the Company.

b. Investors Education and Protection Fund

In terms of Section 125 of the Companies Act, 2013 read with the Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016, during the financial year ended March 31 2026, there is no outstanding amount to be transferred to Investor Education and Protection Fund.

c. Disclosures with respect to Demat suspense account/ unclaimed suspense account

During the year under review no such shares in the Demat suspense account or unclaimed suspense account which are required to be reported as per Para F of Schedule V of the SEBI (LODR) Regulations, 2015.

d. Disclosure of certain types of agreements binding listed entities

As all the agreements entered into by the Company are in normal course of business are not required to be disclosed as they either directly or indirectly or potentially or whose purpose and effect will not impact the management or control of the Company.

APPRECIATIONS & ACKNOWLEDGEMENTS

Your directors wish to place on record their appreciation for the continuous support received from the Members, customers, suppliers, bankers, various statutory bodies of the Government of India and the Companys employees at all levels.