Ucal Ltd Directors Report

To the Members,

The Directors present this 39^th Annual Report along with the Audited Financial Statements of the Company for the financial year ended 31^st March 2025.

1. FINANCIAL RESULTS

The Comparative results of Audited Standalone and Consolidated Financial Statements for the financial year ended 31^st March 2025 and 31^stMarch 2024 are as follows: ( In Lakhs)

	Standalone		Consolidated
Particulars	Financial Year	Financial Year	Financial Year	Financial Year
	31.03.2025	31.03.2024	31.03.2025	31.03.2024
Revenue from operations	58,279.83	48,248.34	80,229.47	72,314.67
Total Expenditure	52,683.02	43,538.12	76,252.44	68,445.29
Operating Income	5,596.81	4,710.22	3,977.03	3,869.38
Other Income	1,899.05	564.47	2,220.00	1,027.89
Profit before Interest, Depreciation, Tax and
	7,495.86	5,274.69	6,197.03	4,897.27
Exceptional items
Interest	2,253.61	1,752.54	2,949.60	2,443.18
Depreciation	2,227.28	1,822.78	4,091.18	3,338.41
Share of Profit/(Loss) of Associate	-	-	-	(0.86)
Profit before Tax & Exceptional Items 3,014.97 1,699.36 (843.75)				(885.17)
Exceptional items
Profit/(Loss) before Tax	3,014.97	1,699.36	(843.75)	(885.17)
Tax Expense/(credit)	754.60	1,583.40	784.25	1,640.74
Profit/(Loss) after Tax	2,260.37	115.96	(1,628.00)	(2,525.91)
Balance of profit brought forward from last year	14,309.68	14,660.16	14,499.95	17,484.40
Amount available for appropriation	16,570.05	14,776.12	12,871.95	14,958.49
Appropriations
Transfer to general reserves	-	-	-	-
Dividend paid during the year	-	(442.27)	-	(442.27)
Tax on dividend	-	-	-	-
Other comprehensive Income/(loss)	(183.78)	(24.17)	(18.64)	748.64
Balance Profit Carried to balance sheet	16,386.27	14,309.68	12,853.31	15,264.86

2. COMPANYS PERFORMANCE

During the year, your Companys total standalone revenue was 58,279.83 Lakhs as against 48,248.34 Lakhs in FY 2023-24 representing an increase of 20.79% over that of the previous year owing to increase in the customer requirements. The consolidated revenue of the Company has also witnessed increase from 72,314.67 Lakhs in FY 2023-24 to 80,229.47 Lakhs registering a growth of 10.94%. The PBDIT has increased from 5,274.69 Lakhs (FY 2023-2024) to 7,495.86 Lakhs (FY 2024-2025) due to efficient management of production overheads and inventory cost of the Company. The Company has netted a Profit After Tax (PAT) of 2,260.37 Lakhs contributing

3.88% of the turnover of FY 2024-25. On Consolidated basis, the Company has marginally reduced net loss from 2,525.91 Lakhs (FY 2023-24) to 1,628 Lakhs (FY 2024-25) mainly contributed to increase in the revenue and other income as against the previous year.

3. DIVIDEND

In order to preserve cash flow for meeting out future capex requirements for various projects to be undertaken by the Company, the Board of Directors has decided to retain the profits and hence no dividend was recommended by the Board of Directors for the financial year 2024-25.

4. TRANSFER TO GENERAL RESERVE

The Company retained the entire surplus in the Profit and Loss account and hence there has been no transfer to the general reserve of the Company for the financial year 2024-2025.

5. SHARE CAPITAL

The paid-up equity share capital of the Company as on 31^st March 2025 stood at 22,11,36,250 consisting of 2,21,13,625 equity shares having face value of 10/- each fully paid up. There has been no change in capital structure of the Company.

6. MANAGEMENT DISCUSSION AND ANALYSIS

The main business of the Company is manufacturing automotive components / parts and pumps, emission control parts and various components for both ferrous and non-ferrous material and offers comprehensive electronic fuel injection management Systems for Automotive Sector. A detailed analysis on the performance of the automotive industry, Companies performance, internal control systems, risk management are presented in the Management Discussion and

Analysis Report forming part of this report and provided in Annexure I.

7. SUBSIDIARY COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS

The Company has two wholly-owned subsidiaries as on 31^st March 2025. There has been no material change in the nature of the business of the Subsidiaries. Pursuant to Section 129 (3) of the Companies Act, 2013 a statement containing the salient features of financial statements of the Companys subsidiaries viz., Ucal Polymer Industries

Limited (UPIL) and Ucal Holdings Inc., (UHI) in Form AOC-

1 is attached to the financial statements of the Company and is given in Annexure-II.

In terms of section 136 of the Companies Act, 2013 the Company has not attached the financial statements of the subsidiary companies. However, the financial information of the subsidiary companies is disclosed in the annual report as Consolidated Financial Statements in accordance with the applicable Accounting Standards

(Ind AS). The annual accounts, reports and other e documents of the subsidiary companies will be available for inspection during business hours, by any shareholder offic e the Company at the registered of the Company and has placed separate audited financial statements of each of its subsidiary on its website www.ucal.com. The Company shall also provide a copy of the audited financial statement in respect of each of its subsidiary companies upon request by any of its shareholders

8. DIRECTORS AND KEY MANAGERIAL PERSONNEL

The composition of the Board of Directors and its Committees, viz., Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee and Corporate Social Responsibility Committee were constituted in accordance with Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR), wherever applicable. The Corporate Governance

Report annexed to this report as Annexure-IX contains an overview of the role, terms of reference, meetings and composition of the Board of Directors of the Company and its Committees.

During the year under review, the following were the changes in the composition of Board of Directors.

Mr. Ram Ramamurthy (DIN:06955444), Director retires by rotation and being eligible, offers himself for re-appointment in this 39^th Annual General Meeting of the Company.

Mr. Adithya Srivatsa Jayakar was appointed as Deputy Managing Director for a period of five years with effect from 12th November 2024.

• Mr.R.Sundar was appointed as Independent

Director for a period of three years with effect from 12^th November 2024.

Mr.Abhaya Shankar resigned from the post of Whole-time Director and Chief Executive Officer with effect from 12th November 2024

Mr. Abhaya Shankar was appointed as Non Executive Director for a period of two years with effect from 13^th November 2024

Mr. T Jaisankar was appointed as Chief Executive Officer with effect from 13th November 2024.

Mr. Jayakar Krishnamurthy, Managing Director, Mr.Adithya Srivatsa Jayakar, Deputy Managing Director, Mr. Ram Ramamurthy, Whole-time Director, Mr. T Jaisankar, Chief Executive Officer, Mr.M.Manikandan, Chief Financial Officer and offic Mr.S.Narayan, Company Secretary hold the of Key Managerial Personnel of the Company as on

31^st March 2025.

The Information required pursuant to Section 197 of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment & Remuneration of Managerial Personnel)

Rules, 2014 in respect of Directors, Key Managerial Personnel and Employees are given in Annexure-III to this report. The information as per Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, forms part of this Report. Brief resume/details of Directors who are to be appointed/re-appointed as mentioned herein has been furnished in Annexure-A along with the explanatory statement in the Notice convening the ensuing 39^thAnnual General Meeting of the Company.

The Director(s) who are proposed for appointment/ re-appointment at the ensuing 39^th Annual General

Meeting of the Company, in Boards opinion, they possess integrity, necessary expertise, relevant experience and proficiency. The Corporate Governance Report annexed to this report contains necessary disclosures regarding the Director(s) and the terms and conditions of appointment of Independent Directors have been disclosed on the website of the Company at https://www.ucal.com/UCAL-ID-appointment-letter.pdf. All the Directors have affirmed compliance with the Code of Conduct of the Company.

9. DECLARATION BY INDEPENDENT DIRECTORS

The Company has received the necessary declarations from each Independent Director in accordance with Section 149(7) of the Companies Act, 2013 confirming that he/she meets the criteria of independence as laid out in Section 149(6) of the Companies Act, 2013 and in accordance with Regulations 16(1) (b) and 25(8) of the recommendations SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and there has been no change in the circumstances affecting their status as Independent Directors of the Company.

The Board of Directors at its first meeting of the financial year 2025-26 held on 30th May 2025 has taken on record submitt the declarations and confirmations by the Independent Directors and other Directors in terms of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. certifi The Company has also obtained a from the Practicing Company Secretary that none of the Directors on the Board of the Company has been debarred or from being appointed or continuing as Directors of companies by the SEBI/ Ministry of Corporate Affairs or any such statutory authority. There are no Alternate Directors being appointed on the Board of the Company.

10. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

As the Company is not falling under top one thousand listed capitalization, entities based market the Business Responsibility and Sustainability Report is not mandatorily applicable.

11. NUMBER OF BOARD MEETINGS HELD DURING THE FINANCIAL YEAR

During the year under review, 10 (Ten) Board Meetings were convened and held, the details of which are given in the Corporate Governance Report. The intervening gap between the meetings of the Board of Directors was within the time period prescribed under the Companies

Act, 2013.

12. BOARD COMMITTEES

The primary committees of the Board are Audit Committee, Nomination and Remuneration Committee, Stakeholders Committee and Corporate Social Responsibility Committee. A detailed note on the committees along with the details of their meetings held during the year is provided under the Corporate Governance Report forming part of this Boards Report.

13. DETAILS OF RECOMMENDATIONS OF AUDIT COMMITTEE WHICH WERE NOT ACCEPTED BY THE BOARD ALONG WITH REASONS.

The Audit Committee generally makes certain to the Board of Directors of the Company during their meetings held to consider any financial results (Unaudited and Audited) and such other matters placed before the Audit Committee as per the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 from time to time. During the year, the Board of Directors has considered all the recommendations made by the Audit Committee and has accepted and carried out all the recommendations suggested by the Committee to its satisfaction. Hence there are no recommendations unaccepted by the Board of Directors of the Company during the year under review.

14. DETAILS OF POLICIES DEVELOPED BY THE COMPANY

14.1 Nomination and Remuneration policy

The Company has formulated a Nomination and Remuneration Policy in compliance with Section 178 of the Companies Act, 2013 read along with the applicable

Rules thereto and Part D of Schedule II of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time. This policy is being governed Committ by the Nomination and Remuneration and the policy lays down the standards to be followed by the Nomination and Remuneration Committee for appointment, remuneration and evaluation of the Directors, Key Managerial Personnel and Senior Management of the Company. The key objectives of the Policy are: a. To formulate the criteria for determining qualifications, competencies, positive attributes and independence for appointment of a Director (Executive / Non-Executive) and recommend to the Board of Directors of the Company (the "Board"), policies relating to the remuneration of the Directors, Key Managerial Personnel and other employees.

b. To formulate criteria for evaluation of the members of the Board and provide necessary report to the Board for further evaluation of the Board. c. To provide to Key Managerial Personnel and Senior Management reward linked directly to their effort, performance, dedication and achievement relating to the Companys operations.

To retain, motivate and promote talent and to ensure long term sustainability of talented managerial persons and create competitive advantage. The remuneration policy is designed keeping in mind various factors position like financial of the Company, trend in the industry, qualification and experience of the appointee, past performance and past remuneration of the appointee. The philosophy behind the remuneration policy is to attract and retain talented individuals and develop and motivate them to achieve the goals of the organisation. The remuneration to the Chairman and Managing Director and Whole-time Director shall be in accordance to the limits / percentage / conditions laid down in the Companies Act 2013. The remuneration to other employees will be such that it ensures a direct relationship to their performance. The remuneration policy is disclosed in the website of the Company at https://www.ucal.com/investor/UCAL-Nomination-

Remuneration-Policy.pdf. The Salient features of the Nomination and Remuneration Policy is annexed herewith marked as Annexure-IV and forms part of this report.

14.2 Corporate Social Responsibility (CSR) Policy

Your Company recognizes that its business have wide impact on the societies in which it operates, and therefore an effective practice is required giving due consideration to the interests of its stakeholders including shareholders, customers, employees, suppliers, business partners, local communities and other organizations. Your Company endeavours to make CSR an important agenda and is committed to its stakeholders to conduct its business in an accountable manner that creates a sustained positive impact on society. Your Company satisfying the threshold as stipulated under Section 135 of the Companies Act, 2013 has established the CSR Committee comprising of members of the Board and the Chairman of the Committee is an Independent Director. The said Committee has formulated and approved the CSR policy as per the approach and direction given by the Board pursuant to the recommendations made by the Committee. The CSR Policy of the Company focuses on constitution of CSR Committee, roles and responsibilities of CSR Committee, CSR activities to be undertaken and allocation of funds for carrying out such CSR activities, Implementation and monitoring the execution of CSR activities for the Company. The Policy applies to all CSR projects/programmes undertaken by the Company in India as per Schedule VII of the Companies Act, 2013. The Annual Report on CSR activities as required under the provisions of the Companies Act, 2013 is annexed herewith marked as Annexure-V and forms part of this report.

14.3 Whistle Blower Policy:

The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations. To maintain these standards, the Company encourages its employees who have concerns about suspected misconduct to come forward and express these concerns without fear of punishment or unfair treatment. A Vigil (Whistle-Blower) mechanism provides a channel to the Employees and Directors to report to the Management concerns about unethical behaviour, actual or suspected fraud or violation of the Code of Conduct or Policy. The mechanism provides for adequate safeguards against victimisation of employees and directors to avail of the mechanism and also provi de for direct access to the Chairman of the Board/ Chairman of the Audit Committee in exceptional cases. With a view to establish a mechanism for protecting employees reporting unethical behaviour, frauds, or violation of the Companys Code of Conduct, misuse or abuse of authority, fraud or suspected fraud, violation of Company rules, manipulations, negligence causing danger to public health and safety, misappropriation of monies etc., the Board has adopted a Whistle Blower Policy. The Policy also provides for access to the Chairman of the Audit Committee and no person has been denied access to the Audit Committee. The details are explained in the Corporate Governance Report and are also posted on the Companys website at https://www.ucal.com/ investor/UCAL-Whistle-Blower-Policy.pdf.

14.4 Risk Management Policy:

The Company has adopted an all-pervasive Risk Management Policy to ensure that effective risk management is in place to address the overall business risks and concerns. The Company has a risk management mechanism in place to manage uncertainties through risk identification, assessment of risk on the scale of probability and severity, risk management framework, risk matrix, risk score, the format of reporting of risk areas and mitigation plan to overcome the risks circulated to all the department heads. The Risk Management Policy is disclosed in the website of the Company at https://www. ucal.com/investor/UCAL-Risk-Management-Policy.pdf.

14.5 Sexual Harassment Policy:

The Company has in place a policy for prevention of sexual harassment in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. An internal Complaints Committee has been set up at each plant to redress sexual harassment complaints.

All employees (permanent, contractual, temporary, trainees) are covered under this policy. No complaints were received during the financial year 2024-25. The Sexual Harassment policy is disclosed in the website of the Company at https://www.ucal.com/investor/UCAL-SEXUAL-HARRASSMENT-POLICY.pdf.

14.6 Prevention of Insider Trading:

The Company has framed a code of conduct for prevention of insider trading based on Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015. This code is applicable to all the Board members/ employees/officers/ designated persons of the Company. The code requires pre-clearance for dealing in the Companys shares and prohibits the purchase or sale of Company shares by the Directors and the Designated Persons while in possession of unpublished price sensitive information in relation to the Company and during the period when the trading window is closed.

The code of conduct for prevention of insider trading is disclosed in the website of the Company https://www. ucal.com/investor/UCAL-insider-trading-code.pdf.

15. MEETING OF INDEPENDENT DIRECTORS

In terms of Regulation 25(3) SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as stipulated in the code for Independent Directors under Schedule IV of the Companies Act, 2013 a separate meeting of Independent Directors was held on 14^th February 2025 to review the performance of non-independent directors including Chairman and Managing Director and the Board as a whole. The

Independent Directors also in the said meeting assessed and reviewed the quality, quantity and timeliness of the flow of information between the Management and the Board and its committees which is essential for effective discharge of their duties. All the Independent Directors attended the meeting.

16. FAMILIARISATION PROGRAMME FOR INDEPENDENT

DIRECTORS

Every Independent Director is briefed about the history of the Company, its policies, customers, technological developments, Companys strategy, operations, product offerings, organisation structure, human resources, technologies, facilities and risk management. Factory visits are also arranged for the Directors who wish to familiarize themselves with the manufacturing processes and operations of the Company. The Independent responsibilities, Directors are briefed their role, duties and are kept updated on the various regulatory and legislative changes that may occur from time to time affecting the operations of the Company. The Independent Directors are also briefed on the various policies of the Company like the code of conduct for directors and senior management personnel, policy on related party transactions, policy on material subsidiaries, whistle blower policy and CSR policy. The familiarization programme for the independent directors is disclosed in the website of the Company at https://www.ucal.com/ investor/UCAL_Familiarisation_Programme.pdf .

17. BOARD EVALUATION

An annual evaluation of the performance of the individual Executive and Non-Executive Directors, Board as a whole, functioning of its committees, and the Chairman of the Board was carried out based on the criteria set by the Nomination and Remuneration Committee. A structured questionnaire was sent to all the Directors seeking qualitative inputs and detailed comments on various parameters as recommended

The methodology adopted by each Director who responded to the survey has graded their peers against each survey item from 1 to 3 with 1 marking they agree to the evaluation parameters set out and 2 marking they disagree to the evaluation parameters set out and 3 marking no opinion to the evaluation parameters set out. The grading done on the basis of a 3-points scale revealed more realistic data on measuring the effectiveness of the Board dynamics, Directors individual performance and contribution, flow of information, decision making of Directors and performance of Board and Committee as a whole. Board Diversity and skill set to review strategies, risk management dimensions and processes, flow of information, adequacy and timeliness of agenda materials, effectiveness of presentations and more importantly the processes of reviewing strategic matters, annual operating plan and strategic business plans were the key focus areas for evaluation of the Board and its Committee functioning. In terms of Section 134(3)(p) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the Board taking into consideration the positive feedback on the Board Evaluation Process Document from all the Directors, expressed their satisfaction on evaluation of the performance of each Director widely on the parameters in terms of their participation in the Board Meetings, timely guidance provided by them to the Management, criteria of independence met by them, effective deployment of their Knowledge and expertise, prudent business practices adopted by them towards governance of the operations of the Company, adherence to the highest standards of integrity and business ethics, exercising their responsibilities in a bonafide manner in the best interest of the Company and not allowing any extraneous consideration that shall impede their decision making authority in the best interest of the Company. During the evaluation process, the Director who is being evaluated did not participate. The Board also expressed their satisfaction on the evaluation of the functioning of the Board and Committee as a whole on the basis of proper combination of Directors having specialized knowledge, expertise and high caliber in driving the growth and business of the Company, high degree of professionalism maintained in conducting the Board and Committee process, presence of gender diversity and matt transparency while dealing with strategic and openness of the Board to accept suggestions from any member of the Board.

18. AUDIT COMMITTEE AND AUDITORS.

18.1 Audit Committee:

The Audit Committee conforms to the requirements of Section 177 of the Companies Act, 2013 and Regulation 18 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The members of the Audit Committee as on date of this report are Mr.S.Balasubramanian, Independent

Director, Mr.I.V.Rao, Independent Director, Mr.R.Sundar,

Independent Director and Mr. Jayakar Krishnamurthy, Managing Director. Mr.S.Balasubramanian is the Chairman of the Audit committee. The committee met 7 (Seven) times during the year. Detailed disclosure on the terms of reference and meetings are provided under the Corporate Governance Report forming part of this

Boards Report.

18.2 Statutory Auditors:

M/s R. Subramanian and Company, LLP, Chartered Accountants, Chennai (Registration Number: 004137S/ S200041) were appointed as statutory auditors of the Company as per the members approval accorded in their 31^st Annual General Meeting (AGM) held on 28^th September 2017 to hold office till the conclusion of the 36^th Annual General Meeting of the Company. At the Annual General Meeting held on 29^th August 2022, the shareholders have approved the re-appointment of Statutory Auditors for a second term of five consecutive years commencing from 36th Annual General Meeting and to hold office upto the conclusion of the 41^st Annual General Meeting of the Company to be held in the calendar year 2027.

The emphasis of matter specified in the Independent auditors report on the Standalone Financial Statements has been explained in Note No.38(b) of the notes to accounts. The Notes on financial statement referred to in the Auditors Report are self-explanatory and do not call for any further comments. The Auditors Report does not contain any qualification, reservation, adverse remark or disclaimer and no fraud have been reported by the auditors under Section 143 (12) of the Companies Act, 2013 requiring disclosure in the Boards report.

18.3 Secretarial Auditor:

Pursuant to the provision of Sections 179(3), 204 and other applicable provisions, if any, of the Companies

Act, 2013 and the Rules made thereunder, read with

Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors based on the recommendation of the Audit Committee, appointed M/s.P. Muthukumaran & Associates, Practising Company Secretaries, (Firm Regn No.P2024TN099300) (Peer Review Certificate No.5642/2024) as Secretarial Auditors of the Company, for a period of 5 (Five) consecutive financial years, commencing from 2025-26 to 2029-30, to carry out

Secretarial Audit.

The said appointment is subject to the approval of the Members by means of an Ordinary Resolution as set out under Item No.4 of the Notice convening this Annual General Meeting.

The report of the secretarial auditor in Form MR-3 for the year ended March 31, 2025 is given in Annexure-VI and forms part of this report.

18.4 Internal Auditors:

M/s. P. Chandrasekar, LLP, Chartered Accountants, continue as internal auditors of the Company. Their scope of work is periodically reviewed and updated by the audit committee. It includes among other things a review of the operational efficiency, effectiveness of systems and controls in existence, review of the processes to safeguard the assets of the Company and assessing the strength of the internal control in all areas. The internal auditors report is discussed with the concerned stakeholders and corrective remedial action is taken on a regular basis in consultation with the audit committee. The internal auditors were present at the audit committee meetings as and when required.

18.5 Cost Auditor:

Pursuant to the provisions of clause (g) of sub-section (3) of Section 141 and sub section (3) of Section 148 of the Companies Act, 2013 read with Companies

(Cost Records and Audit) Rules, 2014, as amended, the Board of Directors in their meeting held on 13^th August 2025 have appointed Mr.L.Thriyambak, Cost Accountant (Membership No. 40720) as Cost Auditor for the financial year 2025-2026 at 3,00,000/- per annum (Rupees Three Lakhs only) subject to the remuneration being ratified by the shareholders at the ensuing Annual General Meeting to conduct the audit of the cost accounting records maintained by the Company relating to those products as mandated by the Companies Act,

2013 and The Companies (Cost records and audit) Rules,

2014 as amended. The Company has received consent from Mr.L.Thriyambak for appointment as Cost Auditor for the financial year 2025-2026. The Audit Committee had recommended his appointment and remuneration subject to the compliance of all the requirements as stipulated under the Act and circulars issued thereunder. As specified by the Central Government under Section 148(1) of the Companies Act, 2013, the cost records are required to be maintained by the Company and accordingly such accounts and records are made and maintained.

19. DIRECTORS RESPONSIBILITY STATEMENT

In terms of Section 134(3)(c) read with Section 134(5) of the Companies Act, 2013 the Directors to the best of their knowledge and belief and according to information and explanation obtained by them confirm that, a) in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures;

b) they have selected such accounting policies and applied 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 at the end of the financial year 31^st March 2025 and of the profit and loss of the Company for the year ended 31^st March 2025. c) they 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; d) they have prepared the annual accounts on a "going concern" basis. e) they have laid down proper internal financial controls to be followed by the Company and such internal financial controls are adequate and are operating effectively. f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and are operating efficiently.

20. THE DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND

BANKRUPTCY CODE, 2016 DURING THE YEAR ALONG

WITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR.

There are no proceedings pending under the Insolvency and Bankruptcy Code, 2016 during the year under review.

21. THE DETAILS OF DIFFERENCE BETWEEN THE 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 ALONG WITH THE REASONS THEREOF.

During the year under review the Company has not carried out any one-time settlement with the Bank or Financial Institutions in respect of any loans availed from them.

22. FINANCE

Your Company has banking arrangements with Bank of Maharashtra and availed various working capital facilities, which are provided in Note No.42. of Standalone/ Consolidated part of financials.

23. CAPITAL EXPENDITURE (CAPEX)

During the year, your Company has spent an amount of 22.07 Crore towards Capex. For the year 2025-26, the estimated Capex would be around 48.13 crores towards normal Capex.

24. LISTING OF EQUITY SHARES

Your Companys shares are listed with BSE Limited (BSE), Mumbai and National Stock Exchange of India Limited (NSE), Mumbai. Your Company has paid the Listing Fees for the financial year 2024-25.

25. OBLIGATION OF YOUR COMPANY UNDER THE SEXUAL HARRASSMENT OF WOMEN AT WORKPLACE

(PREVENTION, PROHIBITION AND REDRESSAL) ACT,

2013

In order to prevent sexual harassment of women at workplace, a legislation The Sexual Harassment of Women at Workplace (Prevention, Prohibition and notifie d Redressal) act, 2013 was on December 09, 2013. Under the said Act, every Company is required to set up an Internal Complaints Committee to look in to complaints relating to sexual harassment at workplace of any woman employee. All employees (permanent, contractual, temporary trainees) are covered under this policy.

Your Company has adopted a policy for prevention of Sexual Harassment of Women at Workplace and constituted an Internal Complaints Committee (ICC) with Ms.Rohini Ravikumar, Advocate as one of its Members. During the year 2024-25, there were no complaints. Further adequate awareness programmes were also conducted for the employees of your Company.

Details of Complaints received and redressed during the

Financial Year 2024-25:

(a) number of complaints of sexual harassment received in the year: None

(b) number of complaints disposed off during the year:

None

(c) number of cases pending for more than ninety days:

None

The Company is fully compliant with the provisions of the Maternity Benefit Act, 1961 including all applicable amendments and rules made thereunder. The company upholds the rights and welfare of its women employees and ensures that all eligible employees are granted maternity leave and benefits as prescribed under the Act. Further that company provides a safe, inclusive and supportive work environment to women and has adopted appropriate policies to facilitate the same.

26. CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Companys CSR activities are in the field of education, sports, health, sanitation and preservation of culture and heritage. As per Section 135 of the Companies Act, 2013, the CSR Policy was formulated by the CSR Committee and thereafter approved by the Board. The CSR policy is displayed on the website of the Company https://www.ucal.com/investor/UCAL-CSR-Policy.pdf. Mr.S.Balasubramanian is the Chairman of the Committee and Mr. Ram Ramamurthy, Mr. Jayakar Krishnamurthy, and Mr.Adithya Srivatsa Jayakar are the other members of the Committee. For the financial year 2024-25 the report on corporate social responsibility is given as Annexure-Vand forms part of the Boards Report.

27. PUBLIC DEPOSITS

During the financial year 2024-25, the Company has not accepted any deposits from the public within the meaning of Section 73 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules 2014 and there is no outstanding amount on account of principal or interest on deposits from public as on date.

28. ANNUAL RETURN

Pursuant to Section 92(3) read with Section 134(3) (a) of the Act, the Annual Return as on March 31, 2025 is available on the Companys website at https://www.ucal. com/investor/Extract of Annual Return-MGT9.

29. INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

• Transfer of Unclaimed Dividends to IEPF, during the year under review:

Your Company transferred a sum of 10,48,050 during the financial year 2024-25 to the Investor

Education and Protection Fund established by the Central Government, in compliance with Sections 123 to 125 of the Companies Act, 2013. The said amount represents the unclaimed dividends for the year ended March 31, 2017, which were lying unclaimed with your Company for a period of seven years from the due date of payment.

• Transfer of Shares to the Demat Account of the IEPF Authority:

In accordance with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, your Company transferred 5,597 Equity Shares of 10 each fully paid-up, in respect of which the dividends relating to the year 2016-17, remained unclaimed / unpaid for a period of seven consecutive years or more, to the Demat Account of the IEPF Authority held with NSDL on December 2, 2024.

• Year wise amount of Unpaid / Unclaimed Dividends lying in the Unpaid Account as on March 31, 2025.

		Unpaid/
				Last date for
	Dividend per	Unclaimed			Due date for transfer
Financial Year			Date of declaration	claiming unpaid
	share	dividend as on			to IEPF
				dividend
		31st March 2025
2017-18	10.00	971,580	29.09.2018	04.11.2025	03.12.2025
2018-19	9.00	8,30,997	30.09.2019	05.11.2026	04.12.2026
2019-20			Not declared
2020-21	2.00	2,64,599	30.09.2021	05.11.2028	04.12.2028
2021-22	2.00	7,66,453	29.08.2022	04.10.2029	03.11.2029
2022-23	2.00	6,91,534	29.09.2023	04.11.2030	03.12.2030
2023-24			Not declared

• Details of the Nodal Officer

Name: Mr.S. Narayan

Designation: Company Secretary and Compliance Officer

Address: UCAL Limited

11 B/2.(S.P), First Cross Road,

Ambattur Industrial Estate,

Chenai 600058

Telephone: 044-66544719 E-Mail ID: investor@ucal.com

30. DISCLOSURE UNDER SCHEDULE V (F) OF THE SEBI

(LODR) REGULATIONS, 2015

Your Company does not have any Unclaimed Shares issued in physical form pursuant to Public Issue/Rights

Issue.

31. INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has an efficient internal control system commensurate with its size and nature of business to ed safeguard the assets of the Company and to ensure effective utilisation of resources. These controls ensure that transactions are completed on time and in an accurate manner and by following proper procedures and systems. The Company has external teams carrying out audit to strengthen the internal audit and risk management functions The internal auditors cover a wide area of operations and this is being continuously reviewed by the Audit Committee. Internal audit is conducted on a quarterly basis by a team of internal auditors and the reports together with the action taken reports are reviewed by the Audit Committee periodically. The Board and Audit Committee ensure that the internal financial control system operates effectively and they regularly review the effectiveness of internal control system in order to ensure due and proper implementation and due compliance with applicable laws, accounting standards and regulatory norms. A system of management controls is also in place to ensure higher levels of efficiency and to keep the organisation All the critical functions of the Company i.e., Sourcing and Procurement, Manufacturing, Costing,

Finance, Dispatch and Sales are handled through Oracle fusion system which is well-integrated. Checks and controls have been built into the system to handle the transactions. Existing internal controls provide adequate assurance to the management for all the transactions covering operations, inventory, assets, financial records and compliance to statutory requirements. The systems and controls are reviewed periodically to ensure their effectiveness. The Board has adopted various policies like Material Subsidiary Policy, Whistle Blower Policy and Related Party Transactions Policy to safeguard the assets of the Company, to ensure timely information and to prevent and detect frauds and errors.

32. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION

AND FOREIGN EXCHANGE, EARNINGS AND OUTGO

Information required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules 2014, on energy conservation, technology absorption, foreign exchange earnings and outgo is given in Annexure VII.

33. PARTICULARS OF LOANS, GUARANTEES AND

INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013

Particulars of loans and advances given, guarantees given, securities provided and investments made are provided in the Note No.3, 4, 11 and 46 of the notes to accounts of the Standalone Financial Statements.

34. MATERIAL CHANGES AND COMMITMENTS

There have been no material changes and commitments which affect the financial position of the Company which have occurred between the end of the financial year i.e., 31.03.2025 to which the financial statements relate until the date of this report.

35. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

The Company has framed a Related Party Transaction Policy in compliance with Section 177 of the Companies Act, 2013 and Regulation 23 of SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015, in order to ensure proper reporting and approval of transactions with related parties. The Policy is available on the website of the Company https://www.ucal.com/ investor/UCAL-Related-Party-Transactions-Policy.pdf. The material transactions entered by the Company with any related party during the financial year 2024-2025 did not have any potential conflict with the interest of Company at large as per Section 188 of Companies Act, . 2013. All transactions entered into with related parties were at an arms length basis and in the ordinary course of business. Form AOC-2 as required under Section 134(3)(h) of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules 2014, is given in Annexure- VIII and forms part of this report.

36. CHANGE IN NATURE OF BUSINESS conditions

There was no change in the nature of business of the Company during the year under review.

37. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY

During the year 2024-2025 no and material orders were passed by the courts, regulators or tribunals affecting the going concern status of the Company and its future operations.

38. NAMES OF COMPANIES WHICH HAVE BECOME OR

CEASED TO BE COMPANYS SUBSIDIARIES, JOINT

VENTURES OR ASSOCIATE COMPANIES DURING THE YEAR

Consequent to the issue of preferential allotment by Avironix Private Limited during the year FY 2024-25, the shareholding of the Company in Avironix Private Limited has come down from 49% to 1.66% and consequently the Avironix Private Limited ceased to be the associate company of the Companywith effect from 10th July 2024.

39. INDUSTRIAL RELATIONS / MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

Companys Human Resource function is aligned with the Companys overall growth vision and continuously works on areas such as recruitment and selection policies, disciplinary procedures, reward/ recognition policies, learning and development programmes as well as all-round employee development. The Company provides a safe and rewarding environment that attracts and retains a talented team and where employees are engaged in delivering exceptional results to the customers and investors. The Company acknowledges the indispensable role of all employees in driving continued success. During the year cordial and healthy relations were maintained with all sections/levels of employees.

40. CORPORATE GOVERNANCE

The Company adheres to all the requirements of the code of corporate governance as stipulated in the SEBI (Listing Obligations and Disclosure Requirements) Regulations,

2015. A report on corporate governance along with certification of the Chief Executive and Chief Financial Officer is attached in Annexure-IX. from M/s. P.Muthukumaran & Associates, a firm of Practising Company Secretaries regarding compliance of the of corporate governance as stipulated by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is given in Annexure-X.

41. STATEMENT ON COMPLIANCE TO APPLICABLE SECRETARIAL STANDARD

The Company has complied with all the applicable secretarial standards as issued by the Institute of Company Secretaries of India during the year 2024-

2025.

42. ANNUAL GENERAL MEETING

To support the health and well-being of all stakeholders, the 39^th Annual General Meeting of the Company would be conducted through Video Conferencing (VC) or Other Audio Visual Means (OAVM) on Monday, 29th September 2025 at 3.00 p.m (IST) as per the framework notified by the Ministry of Corporate Affairs and Securities and Exchange Board of India (SEBI). The notice convening the 39^th Annual General Meeting shall contain detailed instructions and notes in this regard.

In view of the exemption available vide General Circular 02/2022 dated May 05, 2022, issued by the Ministry of Corporate Affairs read with previous circulars and SEBI Circular dated May 13, 2022 in this regard the Company has not printed physical copies of annual report for distribution. The full Annual Report shall be made available on the website of the Company and also shall be disseminated to the stock exchanges where shares of the Company are listed. The electronic copies of the annual report and the notice convening the 39^th Annual General Meeting would be sent to the shareholders whose e-mail addresses are registered with the Company or their respective Depository Participants (DP).

43. DISCLOSURE UNDER SECURITIES AND EXCHANGE

BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) (SECOND AMENDMENTS) REGULATIONS, 2023

During the year, the Company has not entered into any agreements as mentioned in clause 5A to Para A of Part A of Schedule III in terms of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Second Amendments) Regulations,

2023.

44. ACKNOWLEDGEMENT

The Board thanks all its employees, customers, bankers, vendors, suppliers and governmental agencies for their continued support. The Board is grateful to the shareholders for their continued trust and confidence in the Company.

For and on behalf of the Board

	JAYAKAR KRISHNAMURTHY
Place: Chennai	Chairman and Managing Director
Date: 13.08.2025	DIN:00018987