Solana Biofuels Limited Management Discussions

a) Industry Structure and Developments, Opportunities and Threats, Performance, Outlook, Risks and Concerns

Biofuels are regarded as one of the most promising options to fulfil the higher energy requirement in future and simultaneously decarbonize the environment caused by excessive usage of fossil fuels. Technologies for the production of biomass based fuels particularly bioethanol and biodiesel are rapidly developing. Biodiesel is contributing to the diversification of sources and technologies benefiting to the economy.

Indias biofuel policy foresees biofuels as potential candidates stimulating rural development by generating employment opportunities, together with environmental and economic benefits.

The uncertainties in oil prices mandating the serious evaluation of opportunities for the production and consumption of biofuels. Furthermore, because of the price instability in crude oil and over dependency on import, governments are showing keen interest in development and promotion of biofuels even leveraging the subsidies to make biofuels commercially viable.

India meets just 23% of petrol demand through domestic production while the rest is met from imported crude. Keeping this in view, Indias energy security remains vulnerable until alternative fuels to substitute/supplement petro-based fuels are developed indigenously.

Biofuels can increasingly satisfy Indias growing energy needs in an environmentally benign and cost-effective manner, reducing dependence on import of fossil fuels and thereby providing a higher degree of National Energy Security.

The management has designed internal control systems commensurate with the size and complexity of the business. These systems have been designed to provide reasonable assurance with respect to recording and providing reliable financial and operational information, complying with applicable statues, safeguarding its assets from unauthorized use or losses, executing transactions with proper authorization, prevention and detection of fraud and compliance with policies and procedures.

The Audit Committee reviews internal audit reports submitted by the internal auditors. The action taken tracker is also reviewed for implementation of the suggested corrective actions. The Audit Committee also meets the statutory auditors to ascertain their views on the adequacy of internal control systems. c) Financial review

The highlights of financial operational performance are given below:

(Rs. In Lakhs)

The Company believes that the quality of its employees is the key to its success in the long run and is committed to provide necessary human resource development.

Industrial relations during the year were cordial and the Company is committed to maintain the same in future.

Biodiesel is a green, clean-burning fuel produced via the transesterification of edible and non-edible oils. It is renewable, cost-effective, carbon-neutral and non-toxic compared to conventional sources of fuels. As a result, it is extensively utilized in the automotive, marine and railway sectors of India to reduce carbon emissions. Moreover, as biodiesel improves the lubrication of an engine and enhances engine life, it is combined with petroleum diesel fuel for being used in compression ignition engines.

Inflating prices of petroleum products, in confluence with the rising environmental concerns, are escalating the demand for biodiesel in the automobile industry of India. Moreover, the increasing focus on sustainable development practices is bolstering the growth of the market. Furthermore, as biodiesel improves air quality, enhances energy security and provides various safety benefits, it is used to power underground mining equipment and machinery.

The Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2024, together with the comparative period data as at and for the year ended March 31, 2023, as described in the summary of significant accounting policies. Primarily a treatment different from that prescribed in an Accounting Standard has not been followed in the preparation of financial statements. However, as regards amendments to certain accounting standards, the applicability / effect on the financial statement has been evaluated and been treated accordingly as explained in Notes Financial Statements. g) Key Financial Ratios

By Order of the Board

(Formerly Southern Online Bio Technologies Ltd) Place: Hyderabad Date: August 14, 2025 Sd/- Dr. Devaiah Pagidipati

Chairman & Managing Director DIN: 05147621